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

🔥 PLATINUM SERIES 2.0 | VOL. 189

📅 5 OCTOBER 2026 | MONDAY

🎯 TARGET: IBPS PO • SBI PO • IBPS RRB • RBI • NABARD

⚡ 20 QUESTIONS | 20 MARKS | 15–18 MINUTES

❌ NEGATIVE MARKING: 0.25 MARK FOR EACH WRONG ANSWER

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🔥 POST-EXAM INTELLIGENCE CHALLENGE

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The examination tests more than memory.

It tests whether you can:

FACT → IDENTIFY RULE → APPLY → DISTINGUISH → DECIDE

🎯 TARGET SCORE: 18+

Attempt the mock before reading the answer key or revision.

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🔥 TODAY'S INTELLIGENCE FOCUS

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🏦 Monetary Policy & Transmission

💧 Repo • SDF • MSF • VRRR • OMO

🌾 Priority Sector Lending

🏭 MSME & Working Capital

💻 Digital Lending & APR

🤝 Co-Lending

🛡️ Deposit Insurance

⚖️ SARFAESI • IBC • Recovery

💱 Forex Risk & Forward Contracts

🌐 FEMA & Current Account

💳 RTGS & Digital Payments

🏦 Business Correspondent Model

📊 Credit Information

💵 CP • Certificate of Deposit

🔐 Digital Lending & Data Minimisation

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🔥 SECTION A — INTELLIGENCE TEST

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Q1. A bank has temporary surplus funds and wants to place them with RBI without providing eligible collateral. Which facility best matches this objective:

A. Standing Deposit Facility

B. Marginal Standing Facility

C. Repo

D. VRRR

E. Open Market Sale

Q2. A bank faces an unexpected overnight liquidity requirement and has eligible securities available. It needs liquidity beyond its normal operating requirements. Which RBI facility is specifically designed as a marginal source of overnight funds:

A. SDF

B. MSF

C. OMO Purchase

D. VRRR

E. CRR

Q3. RBI wants to absorb surplus liquidity but prefers an auction-based operation in which the rate is determined through bidding rather than using a fixed-rate standing facility. Which operation best fits the description:

A. Repo

B. OMO Purchase

C. VRRR

D. MSF

E. Bank Rate

Q4. RBI reduces the policy repo rate. A bank does not immediately reduce its lending rate by the same magnitude because its deposit costs, liquidity conditions and other funding costs adjust gradually. Which concept best explains the situation:

A. Sterilisation

B. Financial repression

C. Capital account convertibility

D. Imperfect monetary transmission

E. Currency substitution

Q5. RBI purchases government securities from market participants. Assuming other factors remain unchanged, which combination is most appropriate:

A. Bank liquidity falls and money-market rates necessarily rise

B. System liquidity generally increases and the RBI's securities holdings increase

C. CRR automatically increases and bank deposits decline

D. SLR automatically falls and government borrowing declines

E. Bank capital increases because securities are purchased by RBI

Q6. An eligible MSME has strong collateral but weak operating cash flows and an irregular working-capital cycle. Which credit-appraisal conclusion is most appropriate:

A. The proposal should automatically be sanctioned because collateral is adequate

B. PSL classification eliminates the need to assess repayment capacity

C. Working-capital assessment is unnecessary for MSMEs

D. Collateral value is sufficient evidence of repayment capacity

E. The bank should assess sustainable cash flows and repayment capacity despite the collateral

Q7. A digital borrower sees a low advertised interest rate but also has applicable charges associated with the credit facility. Which measure is most relevant for understanding the annualised overall cost of the digital loan:

A. Annual Percentage Rate

B. Capital Adequacy Ratio

C. Loan-to-Value Ratio

D. Net Interest Margin

E. Debt Service Coverage Ratio

Q8. A regulated bank and another eligible regulated entity participate in originating loans under an applicable co-lending framework. Which statement most accurately distinguishes co-lending from securitisation:

A. Co-lending necessarily transfers the entire loan to investors

B. Co-lending converts the loan into a marketable security at origination

C. Co-lending involves participating lenders sharing the credit exposure under the applicable framework

D. Co-lending eliminates the lending institutions' credit risk

E. Co-lending is identical to assignment of a loan portfolio

Q9. A depositor asks which institution administers statutory deposit insurance for deposits held with an insured bank, subject to the applicable statutory limit and conditions. The correct institution is:

A. RBI

B. NABARD

C. SIDBI

D. DICGC

E. SEBI

Q10. A secured creditor seeks enforcement of its security interest after default. The creditor wants to use the statutory enforcement mechanism available to eligible secured creditors, subject to prescribed conditions. Which framework is most directly relevant:

A. IBC

B. SARFAESI Act

C. FEMA

D. Payment and Settlement Systems Act

E. DICGC Act

Q11. A corporate debtor is undergoing a formal insolvency-resolution process. The process is intended to maximise the value of assets through a statutory resolution framework, with liquidation being a possible outcome where resolution fails. Which framework is primarily applicable:

A. Insolvency and Bankruptcy Code

B. SARFAESI Act alone

C. FEMA

D. Negotiable Instruments Act

E. Banking Regulation Act alone

Q12. An Indian importer knows that a dollar payment will be required after three months. The importer fears that the rupee may depreciate before the payment date. Which action most directly hedges the identified exposure:

A. Buy a Treasury Bill

B. Enter an appropriate forward foreign-exchange contract to purchase dollars

C. Increase CRR

D. Purchase a Certificate of Deposit

E. Invest in Commercial Paper

Q13. An Indian resident makes a permitted payment to a foreign service provider for an ordinary business service. Under FEMA classification, such a transaction would generally be treated as:

A. Foreign direct investment

B. Capital account transaction

C. Current account transaction

D. Portfolio investment

E. External commercial borrowing

Q14. A customer initiates a payment in which eligible transactions are settled individually and continuously on a real-time basis rather than being accumulated and netted later. Which system is described:

A. NACH

B. NEFT

C. IMPS

D. RTGS

E. CTS

Q15. A bank appoints an authorised intermediary to provide specified banking services on behalf of the bank in an underserved rural area. Which model is most directly involved:

A. Lead Bank Model

B. Universal Banking Model

C. Correspondent Banking Model

D. Merchant Banking Model

E. Business Correspondent Model

Q16. A prospective borrower has sufficient income but already has several outstanding loans with different lenders. Before sanctioning additional credit, which information would most directly help the bank assess this risk:

A. The bank's CRR position

B. The borrower's credit information showing existing exposure and repayment behaviour

C. RBI's latest policy rate alone

D. The bank's SLR position

E. India's foreign-exchange reserves

Q17. An eligible corporate issuer requires short-term unsecured funding through a money-market instrument. Which instrument is most directly appropriate, subject to applicable eligibility conditions:

A. Commercial Paper

B. Certificate of Deposit

C. Treasury Bill

D. Government Security

E. Equity Share

Q18. A bank wants to raise short-term funds through a negotiable money-market instrument issued to eligible investors. Which instrument best fits the description:

A. Commercial Paper

B. Treasury Bill

C. Certificate of Deposit

D. Equity Share

E. Preference Share

Q19. A bank has ₹15,000 crore of liabilities subject to CRR. If the applicable CRR is 4%, ignoring other adjustments, what amount is required to be maintained as CRR:

A. ₹450 crore

B. ₹500 crore

C. ₹550 crore

D. ₹600 crore

E. ₹750 crore

Q20. A digital lending application seeks continuous access to the borrower's contact list even though the information is not required for appraisal, servicing or regulatory compliance. Which principle most directly supports restricting such collection:

A. Unlimited retention

B. Automatic third-party sharing

C. Open-ended profiling

D. Data minimisation and purpose/need-based collection

E. Permanent storage

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🗝️ ANSWER KEY

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Q1.A

Q2.B

Q3.C

Q4.D

Q5.B

Q6.E

Q7.A

Q8.C

Q9.D

Q10.B

Q11.A

Q12.B

Q13.C

Q14.D

Q15.E

Q16.B

Q17.A

Q18.C

Q19.D

Q20.D

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🚀 IBR PREMIUM — 90 DAYS UNLIMITED MOCK TESTS

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🔥 PREMIUM LEARNING & PRACTICE

🎁 90 DAYS UNLIMITED MOCK PRACTICE

📚 AVAILABLE CATEGORIES:

🎯 IBPS Prelims

🏦 IBPS PO Mains

🌾 IBPS AFO

🏛️ DCCB & PACS Exams

📘 JAIIB

🎓 CAIIB

👉 Register with your Email ID or Google account.

🔥 ONE PREMIUM SECTION

🔥 MULTIPLE EXAM CATEGORIES

🔥 DAILY PRACTICE • MOCK TESTS • REVISION

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📢 STOP! CHECK YOUR SCORE

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Before reading the revision:

📝 Calculate your score.

🔍 Identify your TOP 2 WEAK AREAS.

Ask yourself:

🎯 CONCEPTUAL ERROR OR CARELESS ERROR?

📌 YOUR SCORE: ____ / 20

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1. SDF

Standing Deposit Facility allows eligible banks to park funds with RBI without providing collateral.

🎯 SDF → PARK FUNDS WITH RBI → LIQUIDITY ABSORPTION

2. MSF

Marginal Standing Facility provides an overnight marginal source of liquidity to eligible entities against eligible securities, subject to the applicable framework.

🎯 MSF → MARGINAL LIQUIDITY SUPPORT

3. VRRR

Variable Rate Reverse Repo operations can be used by RBI to absorb surplus liquidity through an auction mechanism.

🎯 VRRR → AUCTION-BASED ABSORPTION

4. MONETARY TRANSMISSION

A change in the policy rate may transmit to lending rates with a lag and may not be of the same magnitude.

🎯 POLICY RATE CHANGE ≠ AUTOMATIC EQUAL CHANGE IN LENDING RATE

5. OMO PURCHASE

When RBI purchases government securities from the market, liquidity generally increases, other factors remaining unchanged.

🎯 OMO PURCHASE → LIQUIDITY INJECTION

6. MSME CREDIT

Collateral supports recovery but does not replace assessment of cash flows, working-capital requirements and repayment capacity.

🎯 COLLATERAL ≠ REPAYMENT CAPACITY

7. APR

Annual Percentage Rate communicates the annualised cost of digital credit, including applicable charges as prescribed.

🎯 APR → ANNUALISED CREDIT COST

8. CO-LENDING

Co-lending involves participating regulated entities originating credit under an applicable framework with prescribed sharing of exposure.

🎯 CO-LENDING ≠ SECURITISATION

9. DICGC

DICGC administers deposit insurance for insured banks, subject to the applicable statutory limit and conditions.

🎯 DICGC → DEPOSIT INSURANCE

10. SARFAESI

SARFAESI provides eligible secured creditors a statutory mechanism for enforcement of security interests, subject to prescribed conditions.

🎯 SARFAESI → SECURITY ENFORCEMENT

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🏆 5-MINUTE POST-MOCK ANALYSIS

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📌 SCORE: ____ / 20

📌 WRONG: ____

📌 UNATTEMPTED: ____

📌 CONCEPTUAL ERRORS: ____

📌 CARELESS ERRORS: ____

🎯 TOP 2 WEAK AREAS

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📊 SCORE GUIDE

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🔥 18–20 → EXCELLENT COMMAND

🟢 16–17 → STRONG

🟡 13–15 → REVISE WEAK AREAS

🟠 10–12 → CONCEPT REVISION REQUIRED

🔴 BELOW 10 → STRENGTHEN CORE CONCEPTS

🎯 IBR PRACTICE TARGET: 18+

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🚀 YOUR NEXT STEP — IBR PREMIUM

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🔥 DON'T JUST READ. TEST YOURSELF.

🎯 IBPS Prelims

🏦 IBPS PO Mains

🌾 IBPS AFO

🏛️ DCCB & PACS Exams

📘 JAIIB

🎓 CAIIB

🎁 90 DAYS UNLIMITED MOCK PRACTICE

👉 Register through your Email ID or Google account.

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📲 FOLLOW • SHARE • GROW WITH IBR

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👍 LIKE today's bulletin

🔄 SHARE with banking-exam friends

📲 FORWARD to your study group

🔔 FOLLOW INDIAN BANKING RADAR (IBR)

🎯 DON'T JUST READ BANKING NEWS.

🧠 CONVERT IT INTO EXAM INTELLIGENCE.

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🔥 FINAL MANTRA

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FACT → RULE → APPLICATION → RISK → CONTROL → EXAM TRAP

🎯 READ SMART • THINK BANKING • ANSWER INTELLIGENTLY