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

🔥 PLATINUM SERIES 2.0 | VOL. 194 📅 10 OCTOBER 2026 | SATURDAY

🎯 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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Attempt all questions before checking the answer key.

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 🔥 SECTION A — INTELLIGENCE TEST

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Q1. The RBI scheduled an outright sale of government securities worth ₹25,000 crore through open market operations on 13 October 2026. What is the primary liquidity effect of this operation:

A. It injects durable liquidity into the banking system

B. It absorbs liquidity as the RBI sells securities to market participants

C. It automatically reduces the repo rate

D. It increases banks' capital adequacy ratios

E. It directly increases the statutory CRR percentage

Q2. The RBI increased the minimum daily CRR maintenance requirement from 90% to 99%, effective from the fortnight beginning 16 October 2026. What does this change mean:

A. The statutory CRR rate automatically becomes 99%

B. Banks are no longer required to maintain the prescribed average CRR

C. Banks can use their entire CRR balance for lending

D. Banks have less flexibility to maintain lower CRR balances on individual days

E. The SLR requirement is abolished

Q3. A bank's prescribed CRR requirement is ₹1,000 crore. Under a minimum daily maintenance requirement of 99%, what is the minimum daily balance it must maintain:

A. ₹990 crore

B. ₹900 crore

C. ₹999 crore

D. ₹1,000 crore plus 99%

E. ₹99 crore

Q4. On 10 October 2026, the RBI announced a special dollar-supply window for three public-sector oil marketing companies, effective from 12 October. Which companies are covered:

A. GAIL, ONGC and Oil India

B. SBI, Bank of Baroda and Canara Bank

C. Indian Oil Corporation, Hindustan Petroleum Corporation and Bharat Petroleum Corporation

D. LIC, GIC Re and New India Assurance

E. NABARD, SIDBI and EXIM Bank

Q5. The RBI reduced the threshold for specified rupee-linked foreign-exchange derivative positions that can be undertaken without establishing underlying exposure from US$100 million to US$5 million equivalent. What is the principal regulatory objective:

A. To prohibit all currency derivatives

B. To guarantee a fixed exchange rate for the rupee

C. To eliminate genuine foreign-exchange hedging

D. To make every derivative transaction risk-free

E. To strengthen market discipline and restrict specified positions undertaken without establishing underlying exposure

Q6. Under the RBI's October 2026 Foreign Exchange Risk Reserve (FERR) framework, which transaction falls within the specified scope of the reserve requirement:

A. Every foreign-exchange transaction, irrespective of value and purpose

B. A qualifying rupee-linked derivative contract exceeding US$2 million equivalent, undertaken to hedge a current-account transaction where the user purchases foreign currency against the rupee

C. Every export transaction, irrespective of the hedging instrument

D. Every domestic rupee-denominated loan

E. Every derivative contract undertaken by an individual, irrespective of its purpose

Q7. An authorised dealer receives a request to rebook a rupee-linked foreign-exchange derivative contract cancelled after the RBI's October 2026 directions were issued. Which response is correct:

A. Rebooking is permitted in every case without restriction

B. Rebooking is permitted whenever additional collateral is offered

C. Rebooking is compulsory for every customer

D. Rebooking must not be permitted where it is prohibited by the applicable directions; rollover on maturity remains subject to the prescribed rules

E. Cancellation automatically guarantees a profit to the customer

Q8. The repo rate increases from 5.25% to 5.50%. A borrower has a floating-rate loan linked to an external benchmark. Which statement is most accurate:

A. The loan rate may change according to benchmark linkage, contractual reset terms and the applicable spread

B. Every floating-rate loan must immediately increase by exactly 25 basis points

C. The outstanding principal automatically increases by 25%

D. The loan automatically becomes a fixed-rate loan

E. The bank must discontinue the loan

Q9. A bank's treasury portfolio contains long-duration, fixed-rate government securities. Market yields rise. What is the most likely valuation effect on comparable existing securities:

A. Their market prices must rise

B. Their coupon rates automatically reset upward

C. Their market prices generally fall, creating potential mark-to-market losses where applicable

D. Their maturity dates automatically shorten

E. Their credit ratings automatically improve

Q10. A bank's deposit base grows by 12%, while its advances grow by 20%. What should the Asset-Liability Management Committee examine most closely:

A. Whether branch signage needs replacement

B. Whether credit appraisal can be discontinued

C. Whether all depositors must be converted into borrowers

D. Whether maturity mismatches can be ignored

E. Funding sustainability, liquidity buffers and the loan-to-deposit position

Q11. A bank's GNPA ratio declines from 4.2% to 3.8%, while its loan book expands rapidly. Which analysis provides the strongest evidence of genuine asset-quality improvement:

A. Growth in the number of ATMs

B. Examination of absolute NPAs, fresh slippages, recoveries, upgrades, write-offs and loan-book growth

C. Increase in staff recruitment

D. Increase in the number of branches

E. Increase in advertising expenditure

Q12. A bank's net interest income rises from ₹800 crore to ₹900 crore, while average interest-earning assets increase from ₹16,000 crore to ₹20,000 crore. Using NIM = NII ÷ average interest-earning assets × 100, what happens to NIM:

A. It rises from 5.0% to 5.625%

B. It remains unchanged at 5.0%

C. It rises from 4.0% to 5.0%

D. It falls from 5.0% to 4.5%

E. It falls from 4.5% to 4.0%

Q13. A borrower reports a current ratio of 2.0 but has substantial overdue receivables and slow-moving inventory. What should the credit officer examine before enhancing the working-capital limit:

A. Receivables ageing, inventory realisability, operating cycle and projected cash flows

B. Only the headline current ratio

C. Only the previous year's turnover

D. Only the collateral offered

E. Only the number of years the business has operated

Q14. A bank employee can create a beneficiary, initiate a high-value payment and approve the same transaction without independent checks. Which control principle is violated:

A. Capital adequacy

B. Asset-liability management

C. Segregation of duties and maker-checker control

D. Priority-sector classification

E. Interest-rate transmission

Q15. Under the general three-stage Expected Credit Loss model, a financial asset 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. Only one month's expected credit losses

C. Immediate write-off in every case

D. No allowance because the asset is not credit-impaired

E. Lifetime expected credit losses

Q16. Under Ind AS 109, which combination is central to classifying a debt instrument in the held-to-collect business-model category, assuming the relevant requirements are met:

A. Branch network and deposit growth

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

C. Market share and employee strength

D. Collateral value alone

E. Credit rating alone, irrespective of contractual cash flows

Q17. A regulated lending entity engages a Lending Service Provider (LSP) for customer acquisition and loan servicing. The LSP violates an applicable regulatory requirement. Which principle generally applies:

A. All regulatory responsibility automatically transfers to the LSP

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

C. The loan automatically becomes an NPA

D. The regulated entity retains its regulatory responsibilities under the applicable framework

E. Customer grievance redressal is no longer required

Q18. A customer reports an unauthorised electronic banking transaction. Which factors are relevant when determining customer liability under the applicable RBI framework:

A. Reporting timeline, transaction circumstances, customer negligence and applicable regulatory provisions

B. The customer's occupation alone

C. The price of the customer's mobile phone

D. The number of branches operated by the bank

E. The customer's account balance alone

Q19. Payment System X settles each transaction individually and finally in real time. Payment System Y accumulates transactions and settles net obligations at defined intervals. Which identification is correct:

A. X = Deferred Net Settlement; Y = RTGS

B. X = Cheque Truncation System; Y = RTGS

C. X = RTGS; Y = Deferred Net Settlement

D. X = Cash settlement; Y = RTGS

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

Q20. A company has genuine foreign-currency exposure arising from an import contract. Which approach represents sound derivative risk management:

A. Enter the largest possible derivative position irrespective of exposure

B. Treat every derivative as a source of guaranteed profit

C. Ignore the underlying contract and maturity

D. Use derivatives only for speculation

E. Match the hedge to the underlying exposure, amount, maturity and risk-management objective

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🗝️ ANSWER KEY

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Q1. B

Q2. D

Q3. A

Q4. C

Q5. E

Q6. B

Q7. D

Q8. A

Q9. C

Q10. E

Q11. B

Q12. D

Q13. A

Q14. C

Q15. E

Q16. B

Q17. D

Q18. A

Q19. C

Q20. E

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🧠 IBR QUICK REVISION

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1. OCTOBER 2026 MONETARY POLICY

Repo Rate → 5.50%

SDF → 5.25%

MSF → 5.75%

Bank Rate → 5.75%

Policy stance → Calibrated Tightening

Repo-rate increase → 25 basis points.

2. RBI LIQUIDITY MANAGEMENT

OMO sale → Absorbs liquidity.

OMO purchase → Injects liquidity.

Scheduled OMO sale → ₹25,000 crore on 13 October 2026.

Minimum daily CRR maintenance → 99% of prescribed CRR from the fortnight beginning 16 October 2026.

Important distinction → The daily maintenance requirement is not the statutory CRR percentage.

3. RBI FOREIGN-EXCHANGE MEASURES

Special dollar window → Indian Oil Corporation, Hindustan Petroleum Corporation and Bharat Petroleum Corporation.

Effective date → 12 October 2026.

Specified positions without establishing underlying exposure → Threshold reduced from US$100 million to US$5 million equivalent.

Cancelled INR-linked derivative contracts → Rebooking restricted under the applicable directions.

FERR → 20% reserve maintained by authorised dealers with the RBI for qualifying derivative contracts exceeding US$2 million equivalent, subject to the prescribed conditions.

4. GOVERNMENT SECURITIES

Market yields rise → Prices of existing fixed-rate securities generally fall.

Longer duration → Greater price sensitivity, other things equal.

5. ALM AND FUNDING

Advances growing faster than deposits → Examine funding sustainability and liquidity.

Declining CASA ratio → Potentially higher funding costs.

Higher NII does not necessarily mean higher NIM.

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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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20/20 • 18+ • 15+ • BELOW 15

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