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

🔥 PLATINUM SERIES 2.0 | VOL. 179

📅 25 SEPTEMBER 2026 | FRIDAY

🎯 TARGET EXAMS

IBPS PO | SBI PO | IBPS RRB | RBI | NABARD

⚡ 20 QUESTIONS | 20 MARKS | 15–18 MINUTES

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🔥 TODAY'S INTELLIGENCE FOCUS

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💰 CASA & Cost of Funds

📊 LCR & Liquidity Stress

🏦 NSFR & Structural Funding

🌾 Priority Sector Lending

🏭 MSME Credit & Credit Guarantee

⚖️ SARFAESI & Recovery

📑 IBC & Resolution

🔐 KYC / CKYCR / Re-KYC

🚨 AML & Transaction Monitoring

📝 Nomination & Deposit Claims

🔒 Bank Locker Operations

🧾 Cheque Truncation System

⚡ RTGS / NEFT

📱 UPI Fraud Prevention

🔢 Card Tokenisation

🔗 Account Aggregator

📊 Credit Information Reporting

🏦 ALM & Interest-Rate Risk

🛡️ Operational Risk

📢 Digital Payment Grievance Redressal

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🔥 SECTION A — INTELLIGENCE TEST

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Q1. A bank's management wants to reduce its average cost of deposits while maintaining a stable retail deposit base. Which strategy is most directly aligned with this objective:

A. Replace all savings deposits with bulk term deposits

B. Increase dependence on short-term market borrowings

C. Strengthen CASA mobilisation through transactional relationships and service quality

D. Restrict customers from using digital transaction channels

E. Reduce the number of savings accounts maintained by the bank

Q2. A bank has eligible HQLA of ₹150 crore and projected net cash outflows of ₹125 crore over the relevant 30-day stress period. Ignoring regulatory adjustments for this simplified question, the LCR is:

A. 120%

B. 83.33%

C. 25%

D. 100%

E. 275%

Q3. A bank funds a significant portion of long-term assets with unstable short-term funding. Which regulatory measure is specifically designed to promote a more stable funding structure over a longer horizon:

A. LCR

B. CRR

C. SLR

D. Capital Adequacy Ratio

E. NSFR

Q4. A loan is proposed to an enterprise that appears to fall within an eligible Priority Sector category. Before reporting the exposure under PSL, the bank should primarily:

A. Assume PSL eligibility because the loan amount is small

B. Verify the borrower, activity and all applicable PSL eligibility conditions

C. Treat every MSME loan as automatically eligible

D. Consider only whether the borrower has a current account

E. Treat Government interest support as conclusive proof of PSL classification

Q5. A bank sanctions ₹40 crore of eligible MSME loans against which the applicable credit-guarantee framework provides support subject to its conditions. Which statement best reflects the role of a credit guarantee:

A. It converts every loan into a risk-free asset

B. It replaces the bank's credit appraisal responsibility

C. It guarantees the borrower's entire repayment obligation in every circumstance

D. It can provide specified guarantee support subject to the scheme's eligibility, coverage and claim conditions

E. It eliminates the need for monitoring the borrower after sanction

Q6. A secured borrower defaults and the bank considers enforcing its security interest under the applicable statutory framework. Which legislation is principally associated with such enforcement by eligible secured creditors, subject to statutory conditions:

A. SARFAESI Act

B. IBC alone

C. Negotiable Instruments Act

D. Credit Information Companies Act

E. Payment and Settlement Systems Act

Q7. A financially distressed company enters the corporate insolvency resolution process under the IBC. Which statement best captures the central objective of the process:

A. Automatic liquidation of every defaulting company

B. Cancellation of all creditor claims

C. Conversion of every bank loan into equity

D. Permanent suspension of all creditor rights

E. Time-bound insolvency resolution with an objective of value maximisation, subject to the Code

Q8. A low-risk individual customer's periodic KYC updation becomes due. The customer states that there is no change in the existing KYC information. Which approach is most consistent with the applicable KYC framework:

A. The bank must always collect an entirely new KYC set regardless of circumstances

B. The bank may follow the permitted process for periodic KYC updation, including applicable self-declaration mechanisms

C. KYC updation is unnecessary once the account is more than five years old

D. CKYCR permanently eliminates periodic KYC requirements

E. The customer must necessarily close and reopen the account

Q9. A customer whose declared business activity involves modest domestic transactions suddenly conducts a series of complex, high-value transactions involving multiple unrelated accounts. No single transaction independently breaches an internal monitoring threshold. What is the strongest AML response:

A. Ignore the transactions because no single transaction crossed the threshold

B. Close the account immediately without analysis

C. Examine the transaction pattern against the customer's profile and apply risk-based monitoring and escalation

D. Inform the customer that an AML suspicion has already been established

E. Treat the transactions as legitimate solely because the account has sufficient balance

Q10. A depositor dies and a valid nomination is available for the deposit account. Which statement best describes the operational significance of nomination:

A. The nominee automatically becomes the absolute beneficial owner for every legal purpose

B. The nomination extinguishes all claims of legal heirs

C. The nominee automatically assumes all liabilities of the deceased

D. The nomination facilitates settlement/receipt of the deposit from the bank, subject to applicable legal and banking procedures

E. The bank must convert the account into a joint account with the nominee

Q11. A bank locker is damaged because of a security failure attributable to the bank. Which statement is most appropriate:

A. DICGC automatically compensates the customer for the contents of the locker

B. The bank's liability is governed by applicable regulatory requirements and the circumstances of the loss

C. The bank can never have any liability relating to locker operations

D. The customer must always bear the entire loss

E. The bank must reimburse the customer's claimed value without reference to applicable rules

Q12. Under the Cheque Truncation System, the physical movement of the cheque is replaced substantially by electronic transmission of its image and related data. Which operational benefit follows most directly:

A. Every cheque becomes guaranteed by the collecting bank

B. Cheques no longer require authentication

C. All cheque returns are eliminated

D. Every cheque becomes an electronic fund transfer

E. Faster processing with reduced physical movement and associated handling risk

Q13. A customer sends ₹8 lakh through RTGS to a beneficiary bank. Which feature most directly distinguishes RTGS from a conventional net-settlement arrangement:

A. Transactions are accumulated for end-of-day settlement

B. It is designed only for international transfers

C. It operates only during limited banking hours

D. Eligible transactions are settled individually on a real-time gross basis

E. Transactions are settled only after a clearing-house netting cycle

Q14. A customer receives a message stating: "You have received a UPI refund. Enter your UPI PIN to receive the money." What is the safest banking response:

A. Do not disclose the UPI PIN; verify the transaction through the authorised payment interface and report suspected fraud promptly

B. Enter the PIN if the message contains the bank's logo

C. Enter the PIN if the refund amount is small

D. Share the PIN with the caller after verifying the last four digits of the account

E. Click the link first and then decide whether to enter the PIN

Q15. A card issuer replaces sensitive card information with a unique token for use within a permitted transaction environment. What technology is being used:

A. Securitisation

B. Encryption of the bank's balance sheet

C. Card tokenisation

D. Cheque truncation

E. Credit scoring

Q16. A customer gives explicit consent for a financial information provider to retrieve specified financial information through the Account Aggregator framework. Which principle is most central:

A. Financial data can be shared permanently with every participating bank

B. The aggregator becomes the owner of the customer's financial information

C. All information must be shared irrespective of customer preference

D. Customer consent is relevant only at the time of account opening

E. Financial information is shared through a consent-based framework with customer control over the permitted data flow

Q17. A bank discovers that an incorrect overdue amount has been reported to a Credit Information Company. What should be done first from a control perspective:

A. Wait for the next annual credit-reporting cycle

B. Verify and correct the underlying records and follow the prescribed process for rectification of the reported information

C. Mark the borrower as a wilful defaulter

D. Close the customer's account

E. Ask the customer to approach another lender for correction

Q18. A bank's liabilities reprice much faster than its fixed-rate assets. Market interest rates fall sharply. Which risk-management concept is most relevant when assessing the resulting effect on the bank's net interest income:

A. Asset-liability management and repricing-gap analysis

B. Locker liability

C. Credit-information reporting

D. Cheque truncation

E. Customer nomination

Q19. A branch repeatedly records cash shortages, unauthorised overrides and manual posting errors. Individual losses are small, but the exceptions are increasing. What is the strongest risk-management interpretation:

A. It is only a customer-service issue

B. It indicates a pure credit-risk problem

C. It is evidence of successful decentralisation

D. It may indicate an emerging operational-risk and internal-control weakness requiring root-cause analysis

E. It should be ignored until a material financial loss occurs

Q20. A digital-payment transaction fails but the customer's account is debited and the expected reversal does not occur within the applicable resolution period. Which response demonstrates the strongest customer-protection approach:

A. Close the complaint because the payment status is "failed"

B. Ask the customer to approach the beneficiary personally

C. Trace the transaction, monitor the prescribed resolution timeline and escalate the case where required

D. Transfer the complaint permanently to the technology vendor

E. Wait until the customer files a legal case before initiating investigation

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🗝️ ANSWER KEY

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Q1.C

Q2.A

Q3.E

Q4.B

Q5.D

Q6.A

Q7.E

Q8.B

Q9.C

Q10.D

Q11.B

Q12.E

Q13.D

Q14.A

Q15.C

Q16.E

Q17.B

Q18.A

Q19.D

Q20.C

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📊 SCORE GUIDE

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🔥 18–20 → ELITE MAINS ZONE

🟢 16–17 → EXAM READY

🟡 13–15 → GOOD — REVISE WEAK AREAS

🟠 10–12 → NEEDS CONCEPT REVISION

🔴 BELOW 10 → REBUILD CORE CONCEPTS

🎯 IBR TARGET: 18+

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