INDIAN BANKING RADAR (IBR) - IBPS PO MAINS — BANKING INTELLIGENCE MOCK

🔥 PLATINUM SERIES 2.0 | VOL. 213

📅 WEDNESDAY, 28 OCTOBER 2026

🎯 TARGET EXAMINATIONS

IBPS PO Mains • SBI PO • Other Banking Examinations

⏱️ QUESTIONS: 20

🎯 MAXIMUM MARKS: 20

⏳ SUGGESTED TIME: 15 MINUTES

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Q1. Which facility enables individual investors to open a Retail Direct Gilt account with the RBI and invest in eligible Government securities:

A. RBI Retail Direct Scheme

B. Public Provident Fund

C. Sovereign Gold Bond Scheme

D. National Pension System

E. Atal Pension Yojana

Q2. What is the fundamental principle governing the sharing of financial information through the Account Aggregator framework:

A. Automatic sharing without customer approval

B. Mandatory sharing with all lending institutions

C. Explicit customer consent for data sharing

D. Unrestricted access to bank account credentials

E. Compulsory transfer of deposits between banks

Q3. Which statement best describes Priority Sector Lending (PSL) requirements for banks:

A. All bank lending must be directed to agriculture

B. PSL applies only to public sector banks

C. Banks may disregard RBI-prescribed eligibility conditions

D. Only loans to large industries qualify

E. Eligible lending must satisfy RBI-prescribed categories and conditions

Q4. Which institution primarily promotes, finances and develops the Micro, Small and Medium Enterprises (MSME) sector in India:

A. National Housing Bank

B. Small Industries Development Bank of India

C. Export-Import Bank of India

D. National Bank for Financing Infrastructure and Development

E. Securities and Exchange Board of India

Q5. What is the maximum deposit insurance cover provided by DICGC to a depositor in one insured bank, including eligible principal and interest, in the same right and capacity:

A. ₹1 lakh

B. ₹2 lakh

C. ₹3 lakh

D. ₹5 lakh

E. ₹10 lakh

Q6. The Liquidity Coverage Ratio (LCR) requires a bank to maintain sufficient High-Quality Liquid Assets (HQLA) to cover projected net cash outflows over which period under the prescribed stress scenario:

A. 7 calendar days

B. 14 calendar days

C. 30 calendar days

D. 60 calendar days

E. 90 calendar days

Q7. Under the general RBI prudential norm, when does a term loan ordinarily become a Non-Performing Asset (NPA) due to overdue principal or interest:

A. When it remains overdue for more than 90 days

B. When it remains overdue for 15 days

C. When it remains overdue for 30 days

D. When it remains overdue for 45 days

E. Immediately after one missed instalment in every case

Q8. What is the principal function of the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI):

A. Insuring bank deposits

B. Regulating stock exchanges

C. Conducting monetary policy

D. Setting priority-sector lending targets

E. Maintaining a registry of specified security interests and related transactions

Q9. An increase in the proportion of Current Account and Savings Account (CASA) deposits may benefit a bank primarily by:

A. Eliminating all credit risk

B. Reducing its average cost of deposits

C. Removing the need for capital adequacy

D. Guaranteeing higher fee income

E. Eliminating liquidity risk completely

Q10. If a bank's regulatory capital remains unchanged while its risk-weighted assets increase, what happens to its Capital to Risk-Weighted Assets Ratio (CRAR), all else being equal:

A. It necessarily doubles

B. It remains unchanged

C. It becomes equal to the repo rate

D. It decreases

E. It becomes equal to the CRR

Q11. Which payment system is primarily designed to facilitate bulk and repetitive electronic payments and collections:

A. National Automated Clearing House (NACH)

B. Real Time Gross Settlement (RTGS) exclusively for cash withdrawals

C. Negotiated Dealing System (NDS)

D. Centralised Funds Management System (CFMS) exclusively for retail bills

E. Securities Settlement System

Q12. The SARFAESI Act enables eligible secured creditors to:

A. Waive all borrower liabilities automatically

B. Recover every unsecured loan without legal conditions

C. Enforce qualifying security interests subject to statutory conditions and exceptions

D. Bypass all applicable legal safeguards

E. Convert every defaulted loan into equity automatically

Q13. What is the principal purpose of the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE):

A. To provide deposit insurance to bank customers

B. To refinance only housing loans

C. To guarantee every loan irrespective of eligibility

D. To finance only large industrial corporations

E. To provide credit guarantee support for eligible credit facilities to micro and small enterprises

Q14. The SHG–Bank Linkage Programme, promoted by NABARD, primarily aims to:

A. Replace all commercial banks with self-help groups

B. Connect self-help groups with formal banking services and improve access to savings and credit

C. Provide insurance exclusively to large corporations

D. Restrict rural lending to agricultural exporters

E. Eliminate the need for financial literacy

Q15. Which statement correctly distinguishes capital adequacy from liquidity in banking:

A. Capital adequacy and liquidity are identical measures

B. Liquidity measures only a bank's profitability

C. Capital adequacy measures only cash available for immediate withdrawals

D. Capital adequacy assesses loss-absorbing capital, while liquidity concerns the ability to meet payment obligations when due

E. Liquidity eliminates the need to maintain regulatory capital

Q16. Under the Basel framework, the leverage ratio primarily compares Tier 1 capital with:

A. A defined exposure measure that is not risk-weighted

B. Only the bank's cash balance

C. Only its net profit after tax

D. Only its government securities holdings

E. Its total deposits multiplied by the repo rate

Q17. What is the principal purpose of the RBI Integrated Ombudsman Scheme:

A. To guarantee profits on bank deposits

B. To settle all commercial disputes between private companies

C. To provide grievance redressal for eligible complaints against covered regulated entities

D. To replace all civil courts

E. To insure every financial investment against market losses

Q18. Which statement correctly distinguishes Real Time Gross Settlement (RTGS) from National Electronic Funds Transfer (NEFT):

A. Both systems settle every transaction only once a week

B. NEFT is exclusively for international remittances

C. RTGS is used only for government securities trading

D. NEFT does not support electronic fund transfers between bank accounts

E. RTGS settles transactions individually in real time on a gross basis, while NEFT operates through a deferred net settlement mechanism

Q19. A bank maintains adequate liquidity but experiences a significant increase in borrower defaults. Which conclusion is correct:

A. Adequate liquidity automatically prevents loan defaults

B. Liquidity does not eliminate credit risk or deterioration in asset quality

C. The bank no longer needs to maintain capital

D. All defaulted loans must immediately be written off

E. Credit risk exists only when the bank has insufficient cash

Q20. What is the primary role of the National Financial Switch (NFS) in India's banking system:

A. Determining the RBI policy repo rate

B. Insuring deposits held with banks

C. Calculating banks' capital adequacy ratios

D. Enabling ATM network interoperability among participating banks

E. Issuing Government of India dated securities

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✅ ANSWER KEY

Q1.A

Q2.C

Q3.E

Q4.B

Q5.D

Q6.C

Q7.A

Q8.E

Q9.B

Q10.D

Q11.A

Q12.C

Q13.E

Q14.B

Q15.D

Q16.A

Q17.C

Q18.E

Q19.B

Q20.D

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📖 EXPLANATIONS & LEARNING POINTS

Q1. RBI Retail Direct Scheme

The scheme enables eligible individual investors to access specified Government securities through an RBI Retail Direct Gilt account.

Q2. Account Aggregator Framework

The framework facilitates financial information sharing between participating entities based on the customer's explicit consent and applicable safeguards.

Q3. Priority Sector Lending

Banks must meet applicable priority-sector lending targets in accordance with RBI-prescribed categories, eligibility criteria and reporting requirements.

Q4. SIDBI

The Small Industries Development Bank of India promotes, finances and develops the MSME sector through financial and developmental initiatives.

Q5. DICGC Insurance Cover

The maximum insurance cover is ₹5 lakh per depositor per insured bank, including eligible principal and interest. Eligible deposits across branches of the same bank are aggregated when held in the same right and capacity.

Q6. Liquidity Coverage Ratio

The LCR requires banks to maintain sufficient High-Quality Liquid Assets to meet projected net cash outflows over a 30-calendar-day stress period.

Q7. NPA Classification

Under the general prudential norm, a term loan ordinarily becomes an NPA when principal or interest remains overdue for more than 90 days, subject to applicable regulatory provisions.

Q8. CERSAI

CERSAI maintains a central registry of specified security interests and related transactions, helping improve transparency and reduce risks associated with multiple financing against the same assets.

Q9. CASA Ratio

CASA represents Current Account and Savings Account deposits. A higher CASA share may reduce a bank's average cost of deposits, depending on its funding mix and applicable interest rates.

Q10. CRAR

CRAR = Regulatory Capital ÷ Risk-Weighted Assets × 100.

If regulatory capital remains unchanged while risk-weighted assets increase, the CRAR decreases.

Q11. NACH

The National Automated Clearing House facilitates bulk and repetitive electronic transactions, including eligible recurring payments and collections.

Q12. SARFAESI Act

The Act provides eligible secured creditors with mechanisms to enforce qualifying security interests, subject to prescribed procedures, statutory conditions and applicable exceptions.

Q13. CGTMSE

CGTMSE provides credit guarantee support for eligible credit facilities extended to micro and small enterprises, subject to applicable scheme conditions.

Q14. SHG–Bank Linkage Programme

The programme connects self-help groups with formal banking services, promoting savings, access to credit and financial inclusion.

Q15. Capital Adequacy vs Liquidity

Capital adequacy measures a bank's capacity to absorb losses through its capital base. Liquidity refers to its ability to meet payment obligations as they fall due.

Q16. Basel Leverage Ratio

The leverage ratio compares Tier 1 capital with a defined exposure measure without applying risk weights. It complements risk-weighted capital requirements.

Q17. RBI Integrated Ombudsman Scheme

The scheme provides a grievance-redressal mechanism for eligible complaints against covered regulated entities, subject to its scope and conditions.

Q18. RTGS vs NEFT

RTGS settles transactions individually in real time on a gross basis. NEFT processes transactions through a deferred net settlement mechanism.

Q19. Liquidity and Credit Risk

Adequate liquidity helps a bank meet payment obligations, but it does not prevent borrowers from defaulting or eliminate credit risk and deterioration in asset quality.

Q20. National Financial Switch

The NFS facilitates ATM network interoperability among participating banks, enabling customers to access ATM services across participating institutions, subject to applicable arrangements.

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🎯 FINAL REVISION CAPSULE

🏦 RBI Retail Direct: Individual access to eligible Government securities.

🔐 Account Aggregator: Consent-based financial information sharing.

📌 Priority Sector Lending: RBI-prescribed categories and eligibility conditions.

🏦 SIDBI: Promotion, financing and development of MSMEs.

🛡️ DICGC: Maximum ₹5 lakh per depositor per insured bank.

💧 LCR: High-Quality Liquid Assets for a 30-calendar-day stress period.

📉 Term-loan NPA: General norm of more than 90 days overdue.

📚 CERSAI: Registry of specified security interests.

💰 CASA: Current Account and Savings Account deposits.

📊 CRAR: Regulatory capital relative to risk-weighted assets.

🔄 NACH: Bulk and repetitive electronic payments and collections.

⚖️ SARFAESI: Enforcement of qualifying security interests, subject to statutory conditions.

🏭 CGTMSE: Credit guarantee support for eligible MSE credit facilities.

🌾 SHG–Bank Linkage: Formal banking access for self-help groups.

📈 Basel Leverage Ratio: Tier 1 capital relative to a defined non-risk-weighted exposure measure.

📢 RBI Ombudsman: Grievance redressal for eligible complaints.

⚡ RTGS: Individual real-time gross settlement.

🔁 NEFT: Deferred net settlement mechanism.

🏧 NFS: ATM network interoperability.

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