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

🔥 PLATINUM SERIES 2.0 | VOL. 191

📅 7 OCTOBER 2026 | WEDNESDAY

🎯 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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🔥 INTELLIGENCE CHALLENGE

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FACT → RULE → APPLICATION → DISTINGUISH → DECIDE

🎯 TARGET SCORE: 18+

Attempt before checking the answer key.

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🔥 SECTION A — INTELLIGENCE TEST

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Q1.A bank's CRR requirement is calculated on its prescribed liability base. Which item is most directly relevant: A. Net Demand and Time Liabilities

B. Gross advances

C. Paid-up equity

D. Total investments

E. Net worth

Q2.A bank has Common Equity Tier 1 capital of ₹800 crore and risk-weighted assets of ₹10,000 crore. Ignoring other regulatory adjustments, CET1 ratio is: A. 5%

B. 6%

C. 8%

D. 10%

E. 12%

Q3.A floating-rate retail loan is linked to an external benchmark. The benchmark rises by 50 basis points, while the contractual spread remains unchanged. What is the most appropriate inference: A. Principal automatically rises by 50%

B. Loan becomes fixed-rate

C. CRR requirement changes

D. Applicable lending rate may rise according to the reset mechanism

E. Loan automatically becomes NPA

Q4.A bank faces surplus liquidity and RBI conducts a variable-rate reverse repo-type absorption operation. The primary objective is to: A. Increase bank capital

B. Absorb surplus liquidity

C. Increase PSL

D. Reduce NPA provisions

E. Increase currency in circulation

Q5.A bank's regulatory capital remains ₹1,200 crore, while RWA rises from ₹10,000 crore to ₹12,000 crore. Ignoring other changes, the capital ratio moves: A. From 10% to 12%

B. From 12% to 10%

C. From 10% to 8%

D. From 12% to 8%

E. It remains unchanged

Q6.A borrower's current ratio is 2.0, but 60% of current assets are receivables overdue for long periods. The best credit-appraisal conclusion is: A. Liquidity is unquestionably strong

B. Working-capital finance should automatically increase

C. Quality and ageing of receivables require examination

D. Current ratio becomes irrelevant

E. The account is automatically an NPA

Q7.An account is classified as NPA under applicable norms. Which consequence is most directly relevant: A. Applicable income-recognition and provisioning requirements arise

B. Entire loan must immediately be written off

C. Collateral automatically transfers to RBI

D. Borrower is permanently barred from banking

E. Account automatically becomes fraud

Q8.Gross NPA ratio falls from 5% to 4%, but the loan book has expanded sharply. Which analysis is strongest: A. Lower ratio proves asset quality improved

B. Examine only deposits

C. Examine share price

D. Ignore denominator effect

E. Examine absolute NPAs, slippages, recoveries, upgrades and write-offs

Q9.An agricultural advance is proposed under PSL. Which factor determines its PSL classification: A. Availability of collateral alone

B. Prescribed RBI eligibility conditions

C. Branch location alone

D. Borrower's savings balance

E. Whether the loan is unsecured

Q10.An MSME requests enhanced working capital after sales increase. Which assessment is most appropriate: A. Only collateral value

B. Only turnover

C. Only employee strength

D. Operating cycle, receivables, inventory, cash flows and repayment capacity

E. Only deposit balance

Q11.A regulated entity uses an LSP for customer acquisition and loan servicing. The LSP violates an applicable regulatory requirement. Which is correct: A. Borrower becomes responsible

B. LSP automatically becomes the regulated entity

C. Regulated entity retains responsibility under the applicable framework

D. Outsourcing removes regulatory responsibility

E. RBI can regulate only the LSP

Q12.A customer undergoes a permitted video-based customer identification process for remote KYC. Which term is most precise: A. V-CIP

B. SLR

C. OMO

D. CIC reporting

E. PSL

Q13.A customer already has a CKYC record and gives required consent for retrieval. CKYC primarily helps to: A. Guarantee loan sanction

B. Replace transaction monitoring

C. Eliminate all future KYC

D. Replace every identity check

E. Facilitate standardised KYC information retrieval and reuse

Q14.A customer promptly reports an unauthorised electronic transaction. Which factor is particularly relevant to liability: A. Only account balance

B. Reporting time and customer negligence

C. Only transaction value

D. Customer's loan history

E. Mobile-phone brand

Q15.An Indian exporter receives payment from an overseas buyer. Which framework primarily governs the foreign-exchange aspects: A. IBC

B. Companies Act

C. FEMA framework

D. Banking Regulation Act alone

E. GST law alone

Q16.A bank purchases a security for a business model focused on collecting contractual cash flows. Which factors are central to investment classification: A. Branch network and deposits

B. Customer credit scores

C. ATM network

D. Business model and contractual cash-flow characteristics

E. Number of savings accounts

Q17.An eligible issuer raises short-term unsecured funds through a money-market instrument. Which is most appropriate: A. Commercial Paper

B. Equity Share

C. Government Bond

D. Preference Share

E. Long-term secured debenture

Q18.Payment X settles individually and finally in real time. Payment Y accumulates transactions and settles on a net basis at defined intervals. The correct distinction is: A. X = DNS; Y = RTGS

B. X = RTGS; Y = DNS

C. Both = RTGS

D. Both = cash settlement

E. X = CTS; Y = cash settlement

Q19.A lender obtains a credit report showing existing borrowings and repayment behaviour. Its main appraisal value is: A. It guarantees repayment

B. It fixes interest rate

C. It replaces internal appraisal

D. It determines repo rate

E. It provides an independent view of credit exposure and repayment history

Q20.An employee can initiate, approve and finally execute a high-value payment without independent verification. Which control is most clearly compromised: A. Segregation of duties

B. PSL classification

C. ALM

D. Interest-rate transmission

E. SLR maintenance

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🗝️ ANSWER KEY

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Q1.A

Q2.C

Q3.D

Q4.B

Q5.B

Q6.C

Q7.A

Q8.E

Q9.B

Q10.D

Q11.C

Q12.A

Q13.E

Q14.B

Q15.C

Q16.D

Q17.A

Q18.B

Q19.E

Q20.A

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🧠 IBR QUICK REVISION

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1. CRR

CRR → prescribed liability base → cash reserve with RBI.

2. CET1 RATIO

CET1 ratio → CET1 capital ÷ RWA × 100.

3. EXTERNAL BENCHMARK

Benchmark → reset mechanism → lending-rate transmission.

4. LIQUIDITY ABSORPTION

Liquidity absorption → removes surplus liquidity.

5. CAPITAL ADEQUACY

Capital ratio → capital ÷ RWA. Higher RWA can dilute the ratio.

6. WORKING CAPITAL

Current ratio → examine quality and ageing, not just the headline number.

7. NPA

NPA → income recognition + provisioning implications.

8. ASSET QUALITY

NPA ratio ↓ → check absolute NPAs, slippages, recoveries, upgrades and write-offs.

9. PSL

PSL → prescribed eligibility conditions.

10. MSME WORKING CAPITAL

Working capital → operating cycle + receivables + inventory + cash flow.

11. LSP

LSP → outsourcing does not transfer regulated-entity responsibility.

12. V-CIP

V-CIP → permitted video-based customer identification.

13. CKYC

CKYC → standardised KYC information retrieval/reuse.

14. DIGITAL FRAUD

Digital-fraud liability → reporting timeline + negligence + applicable rules.

15. FEMA

FEMA → foreign-exchange transactions.

16. INVESTMENT CLASSIFICATION

Investment classification → business model + contractual cash flows.

17. COMMERCIAL PAPER

CP → short-term unsecured money-market funding.

18. RTGS / DNS

RTGS → real-time + gross.

DNS → deferred + net.

19. CREDIT INFORMATION

Credit information → existing exposure + repayment behaviour.

20. SEGREGATION OF DUTIES

Maker/checker independence → stronger internal control.

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⚠️ IBR PO MAINS EXAM TRAPS

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🔹 Higher RWA can reduce capital ratio even when capital is unchanged.

🔹 Current ratio does not guarantee liquidity quality.

🔹 Lower NPA ratio does not automatically prove asset-quality improvement.

🔹 Collateral does not replace repayment-capacity assessment.

🔹 PSL depends on eligibility norms, not merely loan purpose.

🔹 LSP does not inherit the regulated entity's full regulatory responsibility.

🔹 CKYC does not eliminate all KYC/CDD obligations.

🔹 Digital-fraud liability depends on applicable rules and circumstances.

🔹 RTGS = real-time gross; DNS = deferred net.

🔹 Maker-checker = segregation of duties.

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🏆 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

🟢 16–17 → STRONG

🟡 13–15 → REVISE

🟠 10–12 → CORE REVISION

🔴 BELOW 10 → STRENGTHEN BASICS

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🚀 IBR PREMIUM — 90 DAYS UNLIMITED MOCK TESTS

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🎯 IBPS PRELIMS • IBPS PO MAINS • IBPS AFO

🏛️ DCCB & PACS • JAIIB • CAIIB

👉 Register with Email ID or Google account.

🔥 DAILY PRACTICE • MOCK TESTS • REVISION

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📲 FOLLOW • SHARE • GROW WITH IBR

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🎯 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

— INDIAN BANKING RADAR (IBR)