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

🔥 PLATINUM SERIES 2.0 | VOL. 193

📅 9 OCTOBER 2026 | FRIDAY

🎯 TARGET: IBPS PO • SBI PO • IBPS RRB

⚡ 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 all questions before checking the answer key.

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 🔥 SECTION A — INTELLIGENCE TEST

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Q1. Following the October 2026 MPC decision, the repo rate increased from 5.25% to 5.50%. What was the increase in basis points:

A. 10 basis points

B. 15 basis points

C. 20 basis points

D. 25 basis points

E. 50 basis points

Q2. Following the October 2026 MPC decision, the repo rate is 5.50% and the SDF rate is 5.25%. What is the difference between these rates:

A. 10 basis points

B. 25 basis points

C. 50 basis points

D. 75 basis points

E. 100 basis points

Q3. The RBI changed its monetary-policy stance from neutral to calibrated tightening. Which interpretation is most appropriate:

A. RBI has guaranteed a 50-basis-point increase at its next meeting

B. RBI has abolished the SDF

C. Near-term rate cuts are off the table; future action may be a hike or pause depending on evolving conditions

D. All bank lending rates must immediately rise by 25 basis points

E. RBI has fixed the rupee exchange rate

Q4. The RBI projects FY2026–27 real GDP growth at 7.1%. How should a bank use this projection while preparing its credit plan:

A. Use it as a macroeconomic input alongside sectoral and borrower-level risk assessment

B. Increase every borrower's credit limit by 7.1%

C. Assume all sectors will grow at the same rate

D. Replace borrower-level appraisal with the GDP forecast

E. Treat the projection as a guaranteed outcome

Q5. The RBI projects FY2026–27 CPI inflation at 5.2%. Which risk-management response is most appropriate for a bank:

A. Reassess interest-rate risk, funding costs and borrowers' repayment capacity

B. Eliminate all liquidity monitoring

C. Assume every bank's net interest margin will increase

D. Reduce all lending rates automatically

E. Discontinue asset-liability management

Q6. A bank has regulatory capital of ₹1,800 crore and risk-weighted assets of ₹15,000 crore. Ignoring other regulatory adjustments, what is its capital-to-risk-weighted-assets ratio:

A. 8%

B. 10%

C. 11%

D. 12%

E. 15%

Q7. A bank's GNPA ratio falls from 4.5% to 4.0% following rapid loan-book expansion. Which evidence would best help establish whether asset quality genuinely improved:

A. Increase in the number of branches

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

C. Increase in employee strength

D. Growth in ATM numbers

E. Increase in deposits alone

Q8. A borrower's current ratio is 2.0, but most current assets consist of slow-moving inventory and overdue receivables. What should the credit officer examine before enhancing working-capital limits:

A. Only the headline current ratio

B. Only the collateral offered

C. Inventory ageing, receivables quality, operating cycle and cash-flow generation

D. Only the previous year's turnover

E. Only the borrower's net worth

Q9. A bank employee can create a beneficiary, initiate a high-value payment and approve the same transaction without independent verification. Which control principle is violated:

A. Capital adequacy

B. Asset-liability management

C. Priority-sector classification

D. Interest-rate transmission

E. Segregation of duties

Q10. A bank's net interest income rises from ₹900 crore to ₹1,000 crore. Its average interest-earning assets rise from ₹15,000 crore to ₹20,000 crore. Using NIM = Net Interest Income ÷ Average Interest-Earning Assets × 100, what happens to NIM:

A. It rises from 4.5% to 5.0%

B. It remains unchanged at 6%

C. It rises from 6% to 6.5%

D. It falls from 6% to 5%

E. It falls from 5% to 4%

Q11. A bank's CASA ratio declines while its loan portfolio expands. Which concern deserves closer examination:

A. Whether greater dependence on relatively expensive deposits is increasing funding costs

B. Whether CRR automatically declines

C. Whether all loans become non-performing

D. Whether liquidity monitoring can be discontinued

E. Whether statutory audit becomes unnecessary

Q12. A borrower defaults on a repayment obligation. The bank proposes to classify the borrower as a wilful defaulter solely because the payment is overdue. Which statement is correct:

A. Every overdue account automatically qualifies as wilful default

B. Wilful default depends solely on the outstanding loan amount

C. The bank must assess the applicable criteria and evidence and follow the prescribed regulatory process

D. A borrower providing collateral can never be a wilful defaulter

E. Classification can be made without procedural safeguards

Q13. SEBI introduces a Credit Risk-o-Meter as an additional disclosure mechanism 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 additional standardised visual information about credit risk

Q14. An eligible company requires short-term unsecured funding through the money market. Which instrument best fits this requirement:

A. Equity shares

B. Commercial Paper

C. Long-term secured debentures

D. Preference shares

E. Long-term government securities

Q15. A customer has a valid CKYC record and consents to its retrieval. What is the principal benefit:

A. Automatic eligibility for every loan

B. Permanent elimination of all future customer due diligence

C. Automatic credit approval

D. Retrieval and reuse of standardised KYC information, subject to applicable requirements

E. Elimination of transaction monitoring

Q16. A customer reports an unauthorised electronic transaction. Which factors are relevant when determining customer liability under the applicable RBI framework:

A. Customer occupation and educational qualification

B. Account balance alone

C. Mobile handset price

D. Number of bank branches

E. Reporting timeline, circumstances of the transaction, customer negligence and applicable regulatory provisions

Q17. Payment System X settles transactions individually and finally in real time. Payment System Y accumulates transactions and settles them on a net basis at defined intervals. Which identification is correct:

A. X = RTGS; Y = Deferred Net Settlement

B. X = Deferred Net Settlement; Y = RTGS

C. X = Cheque Truncation System; Y = RTGS

D. X = Cash settlement; Y = Deferred Net Settlement

E. X = RTGS; Y = Real-time Net Settlement

Q18. A regulated lending entity appoints a Lending Service Provider (LSP). The LSP violates an applicable regulatory requirement. Which principle applies:

A. All regulatory responsibility automatically transfers to the LSP

B. The borrower becomes responsible for the violation

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

D. The loan automatically becomes an NPA

E. Customer grievance redressal becomes unnecessary

Q19. Under the general three-stage Expected Credit Loss (ECL) model, an exposure has experienced a significant increase in credit risk since initial recognition but is not credit-impaired. Which loss allowance generally applies:

A. No allowance until default occurs

B. Lifetime expected credit losses

C. Only one month's expected credit losses

D. Immediate write-off in every case

E. No allowance because the exposure is not credit-impaired

Q20. Under Ind AS 109, a debt instrument is considered for classification under a business model whose objective is to collect contractual cash flows. Which combination is central to the held-to-collect classification:

A. Branch network and CASA ratio

B. Employee strength and market share

C. ATM network and customer count

D. Business model alone, regardless of contractual cash flows

E. Business model assessment and the SPPI criterion for contractual cash flows

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 🗝️ ANSWER KEY

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Q1.D

Q2.B

Q3.C

Q4.A

Q5.A

Q6.D

Q7.B

Q8.C

Q9.E

Q10.D

Q11.A

Q12.C

Q13.E

Q14.B

Q15.D

Q16.E

Q17.A

Q18.C

Q19.B

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 → Calibrated Tightening

BASIS POINTS

1 basis point = 0.01 percentage point.

25 basis points = 0.25 percentage point.

MACROECONOMIC PROJECTIONS

FY2026–27 GDP growth → 7.1%.

FY2026–27 CPI inflation → 5.2%.

Forecasts are not guaranteed outcomes.

CAPITAL ADEQUACY

Capital Ratio = Regulatory Capital ÷ RWA × 100.

ASSET QUALITY

GNPA ratio alone cannot establish genuine improvement.

Check absolute NPAs, slippages, recoveries, upgrades and write-offs.

NET INTEREST MARGIN

NIM = Net Interest Income ÷ Average Interest-Earning Assets × 100.

NII can rise even when NIM falls.

WORKING CAPITAL

Assess inventory quality, receivables ageing, operating cycle and cash flows.

INTERNAL CONTROL

Maker → Initiates.

Checker → Independently verifies.

Authoriser → Approves within delegated authority.

Principle → Segregation of duties.

COMMERCIAL PAPER

CP → Short-term unsecured money-market instrument issued by eligible issuers.

CKYC

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

DIGITAL TRANSACTION FRAUD

Assess reporting timeline, transaction circumstances, customer negligence and applicable RBI provisions.

RTGS VS DEFERRED NET SETTLEMENT

RTGS → Real-time Gross Settlement.

DNS → Deferred Net Settlement.

LENDING SERVICE PROVIDER

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

EXPECTED CREDIT LOSS

Stage 1 → 12-month ECL.

Stage 2 → Lifetime ECL following a significant increase in credit risk.

Stage 3 → Lifetime ECL for credit-impaired exposures under the general three-stage model.

IND AS 109

Held-to-collect assessment → Business model + SPPI criterion.

SPPI → Solely Payments of Principal and Interest.

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⚠️ IBR PO MAINS EXAM TRAPS

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

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

🔹 A change in policy stance does not guarantee a predetermined future rate hike.

🔹 GDP projections do not replace borrower-level credit appraisal.

🔹 A falling GNPA ratio may reflect loan-book growth or write-offs.

🔹 A high current ratio may conceal liquidity stress.

🔹 Higher NII does not necessarily mean a higher NIM.

🔹 An overdue account is not automatically a wilful-default account.

🔹 Credit Risk-o-Meter information is not a repayment guarantee.

🔹 CKYC does not permanently eliminate applicable KYC/CDD requirements.

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

🔹 LSP outsourcing does not automatically transfer regulatory responsibility.

🔹 Stage 2 under the general three-stage ECL model requires lifetime ECL.

🔹 Under Ind AS 109, held-to-collect classification requires the applicable contractual cash-flow criterion to be satisfied.

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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

✅ DAILY PRACTICE

✅ EXAM-ORIENTED MOCK TESTS

✅ CONCEPTUAL REVISION

👉 Register using your Email ID or Google account.

🔥 PRACTISE DAILY • IDENTIFY WEAK AREAS • IMPROVE YOUR SCORE

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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)