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

🔥 PLATINUM SERIES 2.0 | VOL. 190

📅 6 OCTOBER 2026 | TUESDAY

🎯 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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🏦 RBI Liquidity Management

💰 CRR • SLR • Liquidity Management

📈 Monetary Policy Transmission

🏦 Basel III & Capital Adequacy

📊 NPA • Provisioning • Asset Quality

🌾 Priority Sector Lending

🏭 MSME Credit & Working Capital

💳 Digital Lending & APR

💻 LSP & Regulated Entity

🔐 KYC • CKYC • Customer Due Diligence

🛡️ Cyber Fraud & Customer Liability

💱 FEMA • Export Proceeds

📄 Cheques & Payment Systems

⚖️ Recovery & Insolvency

🏦 Investment Portfolio

💵 Money Market Instruments

📱 RTGS & Settlement

📊 Credit Information

🤝 Financial Inclusion

🎯 Internal Control & Risk Management

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🔥 SECTION A — INTELLIGENCE TEST

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Q1.A bank is calculating its CRR requirement under the applicable RBI framework. Which liability base is most directly relevant for determining the reserve requirement:

A. Net Demand and Time Liabilities

B. Paid-up equity capital

C. Gross advances

D. Total investment portfolio

E. Net worth

Q2.A bank's capital position improves because it raises fresh common equity from investors. Assuming other factors remain unchanged, which component of regulatory capital is most directly strengthened:

A. Tier 1 capital

B. Provision coverage ratio

C. Liquidity Coverage Ratio

D. Risk-weighted assets

E. Net NPA

Q3.A borrower has defaulted, and the bank's exposure meets the applicable criteria for recognition as a non-performing asset. Which consequence is most directly associated with NPA classification:

A. The loan automatically becomes a capital asset

B. Interest income can always continue to be recognised on an accrual basis

C. The bank must follow applicable income-recognition and provisioning requirements

D. The borrower's collateral is automatically transferred to RBI

E. The account is automatically written off

Q4.A bank wants to reduce the effect of concentration risk arising from excessive exposure to a single borrower group. Which approach is most appropriate:

A. Increase exposure to the same borrower group

B. Ignore connected exposures if collateral is available

C. Replace all funded exposure with unsecured exposure

D. Apply exposure limits and diversify the credit portfolio

E. Stop monitoring sectoral concentration

Q5.A borrower makes a substantial part-payment on a floating-rate loan. The bank must determine the revised repayment schedule. Which combination is most directly relevant:

A. CRR and SLR maintained by the bank

B. Outstanding principal, applicable interest rate and remaining tenor

C. India's foreign-exchange reserves and policy rate

D. Bank's paid-up capital and reserve position

E. Bank's investment portfolio and branch network

Q6.A bank finances an eligible agricultural activity that satisfies the applicable Priority Sector Lending criteria. Which statement is most appropriate:

A. PSL classification depends only on whether collateral is available

B. Every agricultural loan automatically qualifies irrespective of applicable norms

C. PSL classification is determined according to the applicable RBI eligibility conditions

D. PSL loans are exempt from all credit appraisal

E. PSL lending cannot involve working capital

Q7.A bank's current assets substantially exceed its current liabilities, but a large portion of its receivables is slow-moving. What is the most important credit-appraisal concern:

A. Liquidity quality may be weaker than the headline current ratio suggests

B. The bank must automatically sanction additional working capital

C. Slow receivables have no effect on liquidity

D. Current ratio alone establishes repayment capacity

E. The borrower automatically qualifies for restructuring

Q8.A customer reports an unauthorised electronic transaction promptly. Under the applicable customer-protection framework, which factor is particularly relevant while determining the customer's liability:

A. Customer liability is always unlimited

B. The bank is never responsible for electronic fraud

C. Liability depends only on the customer's account balance

D. Circumstances such as reporting time and customer negligence are relevant

E. Cyber-fraud complaints cannot be raised after a transaction

Q9.A regulated bank appoints a Lending Service Provider to acquire customers, facilitate loan servicing and undertake specified activities. A regulatory violation occurs in the LSP's operations. Which statement is most accurate:

A. Regulatory responsibility automatically shifts entirely to the LSP

B. The borrower becomes responsible for the LSP's compliance

C. The regulated entity retains responsibility for compliance under the applicable framework

D. RBI can regulate only the LSP and not the regulated entity

E. Outsourcing eliminates the regulated entity's responsibility for customer protection

Q10.A bank wants to establish a customer's identity and understand the purpose and nature of the relationship as part of customer due diligence. Which process is most directly relevant:

A. KYC

B. OMO

C. CRR

D. SLR

E. LCR

Q11.A customer already has a CKYC record and approaches another regulated entity. Subject to applicable rules and consent requirements, the CKYC framework primarily helps by:

A. Eliminating every future KYC requirement

B. Enabling retrieval and use of standardised KYC information

C. Guaranteeing loan approval

D. Replacing all transaction monitoring

E. Removing the need for customer identification

Q12.An Indian exporter receives payment for exported goods from an overseas buyer. Which broad FEMA objective is most directly relevant to the prescribed handling and realisation of export proceeds:

A. Regulation of domestic CRR

B. Management of bank capital

C. Regulation of statutory liquidity

D. Regulation and management of foreign-exchange transactions

E. Determination of GST rates

Q13.A bank purchases a government security and intends to hold it primarily for collecting contractual cash flows, subject to the applicable regulatory classification framework. Which factor is most relevant in determining the appropriate investment category:

A. The bank's branch network

B. The customer's credit score

C. The bank's business model and contractual cash-flow characteristics

D. The bank's CRR balance alone

E. The number of savings accounts

Q14.A company issues a short-term negotiable instrument to raise funds without creating a secured charge over specific assets. Which instrument is most directly associated with this form of money-market borrowing:

A. Certificate of Deposit

B. Commercial Paper

C. Treasury Bill

D. Equity Share

E. Government Bond

Q15.A customer presents a cheque through the banking system. The cheque contains an apparent material alteration in a material particular without proper authentication. What should the bank primarily consider before making payment:

A. The cheque must always be paid because it bears the drawer's signature

B. The alteration is irrelevant if sufficient balance is available

C. The bank should examine the alteration and applicable authentication requirements before payment

D. The cheque automatically becomes a demand draft

E. The cheque can be paid without verification if presented through CTS

Q16.A bank's gross NPA ratio declines, but recoveries and upgrades are not the only reason; the loan book has also grown significantly. What should an analyst do before concluding that asset quality has materially improved:

A. Examine only the absolute amount of deposits

B. Ignore the denominator effect

C. Compare only the bank's share price

D. Analyse both absolute NPAs and ratios along with slippages, recoveries and write-offs

E. Assume that lower gross NPA ratio always means lower credit risk

Q17.A bank is assessing its Liquidity Coverage Ratio. During a period of liquidity stress, which asset characteristic is most important for assets intended to serve as the bank's liquidity buffer:

A. High-quality liquid assets that can be converted into cash with little or no loss of value under stress

B. Assets with the highest possible credit risk

C. Long-term illiquid loans to connected borrowers

D. Equity investments selected only for maximum return

E. Fixed assets such as land and buildings

Q18.A borrower has multiple loans from different lenders. A lender wants an independent view of the borrower's existing credit obligations and repayment track record. Which source is most directly relevant:

A. Credit Information Company

B. RBI Monetary Policy Committee

C. SEBI Mutual Fund Registry

D. DICGC

E. NPCI

Q19.A customer initiates two eligible electronic payments of equal value. Transaction X is settled individually and finally on a real-time basis. Transaction Y is processed through a system where transactions are accumulated and settled on a net basis according to its settlement cycle. Which distinction is correct:

A. X represents deferred net settlement and Y represents gross settlement

B. X represents real-time gross settlement and Y represents deferred net settlement

C. Both necessarily represent real-time gross settlement

D. Both necessarily represent cash settlement

E. X represents cheque truncation and Y represents cash settlement

Q20.A bank's internal audit discovers that one employee can initiate, approve and execute the same high-value transaction without independent verification. Which control principle is most clearly compromised:

A. Asset-liability management

B. Credit concentration

C. Segregation of duties

D. Interest-rate transmission

E. Priority-sector classification

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🗝️ ANSWER KEY

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Q1.A

Q2.A

Q3.C

Q4.D

Q5.B

Q6.C

Q7.A

Q8.D

Q9.C

Q10.A

Q11.B

Q12.D

Q13.C

Q14.B

Q15.C

Q16.D

Q17.A

Q18.A

Q19.B

Q20.C

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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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📢 IBR DAILY PRACTICE CHALLENGE

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🎯 TODAY → Attempt Vol. 190

📝 THEN → Record your score

🔍 NEXT → Identify 2 weak areas

📚 FINALLY → Revise before tomorrow's mock

ONE MOCK A DAY.

ONE SET OF WEAKNESSES LESS.

ONE STEP CLOSER TO EXAM READINESS.

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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

🏦 THAT IS THE IBR INTELLIGENCE APPROACH.

🎯 READ SMART • THINK BANKING • ANSWER INTELLIGENTLY

— INDIAN BANKING RADAR (IBR)