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

🔥 PLATINUM SERIES 2.0 | VOL. 192

📅 8 OCTOBER 2026 | THURSDAY

🎯 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 has a substantial portfolio of benchmark-linked floating-rate retail loans. RBI raises the policy repo rate by 25 basis points from 5.25% to 5.50%. What is the most appropriate immediate inference:

A. The applicable lending rate may rise according to the contractual reset mechanism

B. The outstanding principal automatically rises by 25%

C. All such loans automatically become NPAs

D. The bank's CRR requirement automatically falls

E. The loan contracts automatically become fixed-rate

Q2.After the October 2026 MPC decision, the repo rate is 5.50% and the SDF rate is 5.25%. The SDF-repo spread is:

A. 10 basis points

B. 15 basis points

C. 20 basis points

D. 25 basis points

E. 50 basis points

Q3.RBI changes its monetary-policy stance from “neutral” to “calibrated tightening”. Which interpretation is most appropriate:

A. RBI has committed to another immediate 50-bps hike

B. Near-term rate cuts are off the table, while future action can be a hike or pause depending on evolving conditions

C. RBI has abolished the policy repo rate

D. All bank lending rates must immediately rise by 25 bps

E. RBI has fixed the rupee exchange rate

Q4.RBI raises its FY2026-27 real GDP growth projection to 7.1%. A bank uses this projection while preparing its credit plan. Which approach is most appropriate:

A. Assume every borrower will grow by exactly 7.1%

B. Treat the projection as a guaranteed outcome

C. Use it as a macroeconomic input while retaining borrower-level and sector-level risk assessment

D. Replace cash-flow analysis with the GDP forecast

E. Increase every borrower's credit limit automatically

Q5.RBI raises its FY2026-27 CPI inflation projection to 5.2%. A bank expects inflation to remain elevated. Which response is most appropriate:

A. Ignore interest-rate sensitivity because GDP growth is strong

B. Reduce all lending rates irrespective of funding costs

C. Assume deposit pricing will remain unaffected

D. Eliminate liquidity and ALM monitoring

E. Reassess pricing, interest-rate risk and borrower repayment sensitivity

Q6.A borrower has a floating-rate loan linked to an external benchmark. RBI raises the repo rate, but the contractual spread remains unchanged. Which statement is most accurate:

A. The loan principal automatically increases

B. The bank must increase the spread by the same amount

C. The applicable lending rate may increase when the benchmark resets, subject to the loan's contractual mechanism

D. The borrower automatically becomes liable for a penalty

E. The loan automatically becomes a fixed-rate loan

Q7.The October 2026 MPC unanimously voted for a 25-bps increase in the policy repo rate. In this context, “unanimously” means:

A. All MPC members voted in favour of the repo-rate increase

B. All commercial banks supported the decision

C. All NBFCs supported the decision

D. The Union Government fixed the policy rate

E. Financial markets voted for the increase

Q8.RBI's FY2026-27 CPI inflation projection is 5.2%, while the policy stance has shifted to calibrated tightening. Which inference is strongest for a bank's treasury and risk-management function:

A. Inflation risk can be ignored because GDP growth is strong

B. Deposit rates must automatically fall

C. The bank should assume an immediate policy-rate cut

D. Interest-rate and liquidity risks require closer monitoring as the policy environment has become tighter

E. Market-risk management becomes unnecessary

Q9.A bank's regulatory capital is ₹1,440 crore and its RWA is ₹12,000 crore. Ignoring other regulatory adjustments, its capital ratio is:

A. 8%

B. 12%

C. 10%

D. 14%

E. 16%

Q10.A bank's GNPA ratio falls from 4.5% to 4.0% after a sharp expansion in its loan book. Which additional evidence would provide the strongest assessment of whether asset quality genuinely improved:

A. Increase in the number of branches

B. Growth in total deposits

C. Increase in employee strength

D. Higher ATM penetration

E. Trends in absolute NPAs, fresh slippages, recoveries, upgrades and write-offs

Q11.A borrower's current ratio is 2.2, but 70% of current assets consist of slow-moving inventory. What should the credit officer primarily examine before enhancing working-capital limits:

A. Only the headline current ratio

B. Inventory ageing, turnover, operating cycle and cash-flow generation

C. Only the collateral offered

D. Only the borrower's net worth

E. Only the previous year's turnover

Q12.An employee can create a beneficiary, initiate a high-value payment and approve the same transaction without independent verification. Which control principle is most clearly compromised:

A. Asset-liability management

B. Capital adequacy

C. Segregation of duties

D. Priority-sector classification

E. Interest-rate transmission

Q13.SEBI introduces a Credit Risk-o-Meter for debt securities. Which statement best describes its purpose:

A. It guarantees repayment by the issuer

B. It fixes the secondary-market price

C. It replaces all investment analysis

D. It determines the coupon rate

E. It provides an additional standardised visual indication of credit risk

Q14.An investor sees a high-risk category under the Credit Risk-o-Meter for a debt security. Which conclusion should NOT be drawn:

A. The disclosure guarantees that the security will default

B. The security carries a higher indicated level of credit risk

C. The disclosure can assist investors in comparing credit-risk levels

D. The disclosure is an additional risk-information mechanism

E. Other investment due diligence may still be required

Q15.An eligible issuer requires short-term unsecured funding through a money-market instrument. Which instrument best fits the requirement:

A. Equity Share

B. Long-term secured debenture

C. Preference Share

D. Commercial Paper

E. Government equity security

Q16.A customer already has a valid CKYC record and gives the required consent for retrieval. Which benefit most directly follows:

A. Standardised KYC information can be retrieved and reused subject to applicable requirements

B. The customer is guaranteed a loan

C. All future customer due diligence is permanently eliminated

D. Transaction monitoring becomes unnecessary

E. Credit appraisal becomes automatic

Q17.A customer reports an unauthorised electronic transaction promptly. The bank is assessing customer liability. Which combination is most relevant:

A. Customer's occupation and branch location

B. Account balance and mobile handset brand

C. Reporting timeline, customer negligence and applicable regulatory provisions

D. Loan outstanding and deposit balance

E. Customer's credit score and income

Q18.Payment System X settles transactions individually and finally in real time, whereas Payment System Y accumulates transactions and settles them on a net basis at defined intervals. The correct distinction is:

A. X = DNS; Y = RTGS

B. X = RTGS; Y = DNS

C. X = CTS; Y = RTGS

D. X = Cash settlement; Y = RTGS

E. X = DNS; Y = Cash settlement

Q19.A regulated entity appoints a Lending Service Provider for customer acquisition and loan servicing. The LSP violates an applicable regulatory requirement. Which principle is most appropriate:

A. Outsourcing automatically transfers regulatory responsibility to the LSP

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

C. RBI can regulate only the LSP

D. The regulated entity retains responsibility under the applicable regulatory framework

E. The loan automatically becomes an NPA

Q20.A bank purchases a debt security under a business model primarily aimed at collecting contractual cash flows. Which combination is central to determining its investment classification:

A. Branch network and CASA ratio

B. ATM network and customer count

C. Employee strength and market share

D. Number of savings accounts and deposit growth

E. Business model and contractual cash-flow characteristics

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🗝️ ANSWER KEY

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Q1.A

Q2.D

Q3.B

Q4.C

Q5.E

Q6.C

Q7.A

Q8.D

Q9.B

Q10.E

Q11.B

Q12.C

Q13.E

Q14.A

Q15.D

Q16.A

Q17.C

Q18.B

Q19.D

Q20.E

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🧠 IBR QUICK REVISION

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OCTOBER MPC

Repo Rate → 5.50%

SDF → 5.25%

MSF → 5.75%

Bank Rate → 5.75%

POLICY STANCE

Neutral → Calibrated Tightening.

Near-term rate cuts → off the table.

Future action → hike or pause, depending on evolving conditions.

GDP PROJECTION

FY2026-27 real GDP growth → 7.1%.

INFLATION PROJECTION

FY2026-27 CPI inflation → 5.2%.

RATE TRANSMISSION

Repo rate → funding conditions → benchmark transmission → lending rates.

CAPITAL RATIO

Capital Ratio → Regulatory Capital ÷ RWA × 100.

ASSET QUALITY

GNPA ratio ↓ → do not conclude automatically that asset quality improved.

Check → absolute NPAs + slippages + recoveries + upgrades + write-offs.

WORKING CAPITAL

Current ratio → headline indicator only.

Assess → inventory + receivables + ageing + operating cycle + cash flows.

SEGREGATION OF DUTIES

Maker → Checker → Authoriser.

Independent verification → key internal control.

CREDIT RISK-O-METER

SEBI → additional disclosure mechanism for debt securities.

Purpose → help investors assess credit risk through standardised visual disclosure.

CKYC

CKYC → standardised KYC information retrieval and reuse, subject to applicable requirements.

DIGITAL-FRAUD LIABILITY

Consider → reporting timeline + customer negligence + applicable regulatory provisions.

LSP

Outsourcing → does not automatically transfer the regulated entity's regulatory responsibility.

COMMERCIAL PAPER

CP → short-term unsecured money-market instrument.

RTGS vs DNS

RTGS → Real Time + Gross.

DNS → Deferred + Net.

INVESTMENT CLASSIFICATION

Business model + contractual cash-flow characteristics → central considerations.

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⚠️ IBR PO MAINS EXAM TRAPS

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🔹 25 bps = 0.25 percentage point, not 25%.

🔹 Repo-rate increase does not mean every floating-rate loan immediately rises by exactly 25 bps.

🔹 Calibrated tightening does not mean an automatic predetermined future hike.

🔹 Near-term rate cuts are off the table; the next move can be a hike or pause depending on evolving conditions.

🔹 GDP projection is a forecast, not a guaranteed borrower-level growth rate.

🔹 Lower GNPA ratio does not automatically establish improved asset quality.

🔹 A strong current ratio can conceal weak liquidity when current assets are of poor quality.

🔹 CKYC does not eliminate all future KYC/CDD obligations.

🔹 Credit Risk-o-Meter is a risk-disclosure mechanism, not a repayment guarantee.

🔹 LSP outsourcing does not automatically transfer regulatory responsibility.

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

🔹 Maker-checker independence is an application of 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

📲 FOLLOW • SHARE • GROW WITH IBR

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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)