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

🔥 PLATINUM SERIES 2.0 | VOL. 195

📅 11 OCTOBER 2026 | SUNDAY

🎯 TARGET: IBPS PO • SBI PO • IBPS RRB

📝 20 QUESTIONS | 20 MARKS

⏱️ TIME: 18 MINUTES

❌ NEGATIVE MARKING: 0.25 PER WRONG ANSWER

━━━━━━━━━━━━━━━━━━

🔥 INTELLIGENCE CHALLENGE

FACT → RULE → APPLICATION → DISTINGUISH → DECIDE

🎯 TARGET SCORE: 18+

Attempt all questions before checking the answer key.

━━━━━━━━━━━━━━━━━━

🔥 SECTION A — INTELLIGENCE TEST

Q1. A borrower consents to sharing bank-account information through an Account Aggregator. What is the principal benefit of this arrangement:

A. Access to all customer data without consent

B. Automatic loan approval

C. Consent-based financial data sharing that can support credit assessment

D. Elimination of KYC and credit appraisal

E. Transfer of deposit ownership to the lender

Q2. What is the primary purpose of the Standardised Approach for Counterparty Credit Risk (SA-CCR) in the applicable regulatory framework:

A. Measuring counterparty credit exposure arising from derivatives and relevant transactions

B. Treating all derivative exposures as zero-risk assets

C. Measuring exposure only by the cash margin received

D. Excluding potential future exposure from risk measurement

E. Replacing counterparty risk measurement with deposit-growth analysis

Q3. A bank's derivative has a positive market value, but the counterparty's creditworthiness deteriorates. Which measure reflects the valuation impact associated with counterparty credit risk:

A. Operational risk capital

B. Net Stable Funding Ratio

C. Statutory Liquidity Ratio

D. Credit Valuation Adjustment (CVA)

E. Cash Reserve Ratio

Q4. Why are regulatory risk weights important in calculating a bank's capital adequacy ratio:

A. They determine deposit interest rates

B. They affect risk-weighted assets and capital requirements

C. They determine the RBI repo rate

D. They eliminate all credit risk

E. They determine the statutory CRR percentage

Q5. A bank has eligible regulatory capital of ₹1,200 crore and risk-weighted assets of ₹10,000 crore. What is its capital adequacy ratio:

A. 8%

B. 10%

C. 11%

D. 14%

E. 12%

Q6. A bank's Liquidity Coverage Ratio (LCR) falls below the applicable regulatory minimum. Which action most directly addresses its short-term liquidity concern:

A. Increase long-term lending without arranging additional funding

B. Replace liquid assets with illiquid loans

C. Strengthen its eligible high-quality liquid assets and manage short-term cash outflows

D. Stop monitoring daily liquidity positions

E. Increase dividend payouts

Q7. A bank reports an LCR of 120%. Under the standard LCR definition, what does this indicate:

A. Eligible high-quality liquid assets equal 120% of expected net cash outflows over the 30-day stress period

B. Total deposits equal 120% of regulatory capital

C. Annual profit equals 120% of advances

D. All loans are secured by government securities

E. CRR equals 120% of SLR

Q8. A bank's Net Stable Funding Ratio (NSFR) falls below the applicable minimum. Which action best addresses its structural funding concern:

A. Increase overnight borrowing to finance long-term assets

B. Replace stable customer deposits with volatile funding

C. Stop assessing the maturity profile of assets

D. Improve available stable funding relative to required stable funding

E. Replace liquid assets with long-term illiquid assets without assessing funding needs

Q9. A bank's return on assets (ROA) increases from 0.80% to 1.00%, while average total assets remain ₹50,000 crore. Assuming the same annual measurement period, what is the increase in annual net profit attributable to the ROA improvement:

A. ₹5 crore

B. ₹10 crore

C. ₹50 crore

D. ₹100 crore

E. ₹250 crore

Q10. What is the principal function of an Asset Reconstruction Company (ARC) under the applicable regulatory framework:

A. Accepting public demand deposits as a commercial bank

B. Acquiring financial assets and undertaking their resolution under the applicable framework

C. Determining the RBI policy repo rate

D. Guaranteeing every loan sold by a bank

E. Replacing the Insolvency and Bankruptcy Code

Q11. A bank detects transactions inconsistent with a customer's stated business profile and identifies potential money-laundering concerns. What is the appropriate compliance response:

A. Close every account held by the customer automatically

B. Ignore the transactions if the account has a positive balance

C. Inform the customer of every internal suspicion report

D. Delete the transaction history after recording the concern

E. Escalate the activity through prescribed AML monitoring and reporting procedures

Q12. What is the principal benefit of an eligible Trade Receivables Discounting System (TReDS) transaction for an MSME supplier:

A. Conversion of trade receivables into equity

B. Automatic cancellation of the buyer's payment obligation

C. Financing eligible trade receivables to improve working-capital availability

D. An unconditional government guarantee for every invoice

E. Prohibition on dealing with other buyers

Q13. An MSME has viable cash flows but limited conventional collateral. Which approach represents sound credit appraisal:

A. Reject the proposal solely because immovable property is unavailable

B. Approve the loan without examining repayment capacity

C. Assume that a credit guarantee eliminates default risk

D. Assess business viability, cash flows, repayment capacity and eligibility for applicable guarantee support

E. Ignore the borrower's existing liabilities

Q14. A bank accepts an asset as security without discovering that another lender already holds a charge over it. What is the principal concern:

A. Competing claims and possible limitations on enforceable security

B. Automatic increase in the bank's CRR

C. Automatic improvement in the borrower's credit rating

D. Elimination of recovery risk

E. Automatic classification of the loan as priority-sector credit

Q15. What is the general effect of the moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016, subject to the Code's provisions and exceptions:

A. All debts of the corporate debtor are extinguished

B. Specified proceedings and enforcement actions against the corporate debtor are stayed during the moratorium

C. Every creditor automatically becomes a secured creditor

D. The corporate debtor's assets immediately vest in the RBI

E. All financial creditors lose their rights in the resolution process

Q16. A bank assesses agricultural loans exposed to irregular monsoons, water scarcity and rising input costs. Which approach best supports climate-informed credit risk management:

A. Assume historical crop yields will remain unchanged indefinitely

B. Stop all agricultural lending irrespective of local conditions

C. Assess only the borrower's land area

D. Ignore irrigation availability when evaluating repayment capacity

E. Evaluate climate exposure, water availability, crop diversification, insurance and repayment scenarios

Q17. A customer reports a fraudulent electronic banking transaction after being deceived by a scammer. Which factors are relevant when determining customer liability:

A. The customer's occupation alone

B. The customer's account balance alone

C. Applicable RBI provisions, reporting timeline, transaction circumstances and customer negligence

D. The price of the customer's mobile phone

E. The number of branches operated by the bank

Q18. Which combination of controls best reduces the risk of one compromised employee independently initiating and approving a high-value payment:

A. Shared passwords and common administrator accounts

B. Unrestricted access for all employees

C. Disabling transaction alerts

D. Role-based access, multi-factor authentication, maker-checker controls and independent monitoring

E. Identical credentials for transaction initiation and approval

Q19. Why should a bank monitor concentration risk in a large borrower group even when its loans are currently performing:

A. A common adverse event can cause correlated losses and materially weaken the bank

B. Performing loans can never become stressed

C. Concentration automatically improves diversification

D. Large borrowers are exempt from credit monitoring

E. Concentration risk applies only to cash transactions

Q20. A business reports rising sales but deteriorating operating cash flow. What should the bank examine before renewing its working-capital facility:

A. Sales growth alone

B. Receivables, inventory, payable cycles, projected cash flows and repayment capacity

C. Accounting profits alone

D. Automatic limit enhancement matching sales growth

E. Discontinuation of stock statements and receivables monitoring

━━━━━━━━━━━━━━━━━━

🗝️ ANSWER KEY

Q1. C

Q2. A

Q3. D

Q4. B

Q5. E

Q6. C

Q7. A

Q8. D

Q9. D

Q10. B

Q11. E

Q12. C

Q13. D

Q14. A

Q15. B

Q16. E

Q17. C

Q18. D

Q19. A

Q20. B

━━━━━━━━━━━━━━━━━━

🧠 IBR QUICK REVISION

1. ACCOUNT AGGREGATOR

• Enables consent-based financial information sharing.

• Can support credit assessment through access to relevant financial data.

• Does not guarantee loan approval or eliminate KYC requirements.

2. COUNTERPARTY CREDIT RISK

• SA-CCR → Standardised Approach for Counterparty Credit Risk.

• CVA → Credit Valuation Adjustment.

• These concepts address different aspects of counterparty exposure and valuation.

3. LIQUIDITY MANAGEMENT

• LCR → High-quality liquid assets relative to expected net cash outflows over a 30-day stress period.

• NSFR → Structural stability of funding.

• Strong short-term liquidity does not automatically establish strong long-term funding.

4. CAPITAL ADEQUACY

• CAR = Eligible regulatory capital ÷ Risk-weighted assets × 100.

• Risk weights influence RWA and capital requirements.

• Q5: ₹1,200 crore ÷ ₹10,000 crore × 100 = 12%.

5. PROFITABILITY

• ROA = Net profit ÷ Average total assets × 100.

• Higher NII does not necessarily mean higher NIM.

• Q9: ROA improvement = 0.20 percentage points.

• Increase in annual net profit = 0.20% × ₹50,000 crore = ₹100 crore.

6. CREDIT & RECOVERY

• ARC → Acquisition and resolution of financial assets under the applicable framework.

• Verify existing charges and enforceability of security.

• Credit guarantees do not eliminate default risk.

7. MSME FINANCE

• TReDS → Financing of eligible trade receivables.

• Assess operating cycle, cash flows and repayment capacity.

• Higher sales do not necessarily mean stronger liquidity.

8. AML & CYBERSECURITY

• Suspicious activity → Follow prescribed AML escalation and reporting procedures.

• MFA, role-based access and maker-checker controls strengthen transaction security.

• Authentication alone does not settle every fraud-liability question.

9. INSOLVENCY

• IBC Section 14 → Statutory moratorium, subject to scope and exceptions.

• A moratorium does not automatically extinguish debt.

10. AGRICULTURAL CREDIT

• Assess rainfall, irrigation, water availability, crop diversification, insurance and repayment capacity.

━━━━━━━━━━━━━━━━━━

📊 SCORE GUIDE

🔥 18–20 → EXCELLENT

🟢 16–17 → STRONG

🟡 13–15 → REVISE

🟠 10–12 → STRENGTHEN BASICS

🔴 BELOW 10 → REBUILD FUNDAMENTALS

━━━━━━━━━━━━━━━━━━

💎 IBR PREMIUM — 90 DAYS OF UNLIMITED MOCK TESTS

🎯 IBPS PRELIMS • PO MAINS • AFO

🏛️ DCCB • PACS • JAIIB • CAIIB

✅ Exam-oriented mock tests

✅ Application-based questions

✅ Conceptual revision

✅ Weak-area identification and performance tracking

👉 Register through your email ID or Google account in the IBR Premium section.

🔥 DON'T JUST PRACTISE QUESTIONS.

🧠 MASTER THE CONCEPTS BEHIND THE ANSWERS.

━━━━━━━━━━━━━━━━━━

📲 FOLLOW • SHARE • GROW WITH IBR

📢 COMMENT YOUR SCORE:

20/20 • 18+ • 15+ • BELOW 15

Share this mock with fellow banking aspirants and challenge them to score 18+.

━━━━━━━━━━━━━━━━━━

🔥 FINAL MANTRA

FACT → RULE → APPLICATION → RISK → CONTROL → EXAM TRAP

🎯 READ SMART • THINK BANKING • ANSWER INTELLIGENTLY

— INDIAN BANKING RADAR (IBR)