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

🔥 PLATINUM SERIES 2.0 | VOL. 208

📅 FRIDAY, 23 OCTOBER 2026

🎯 TARGET: IBPS PO • Banking Officers • Banking Aspirants

📝 20 MCQs | 20 MARKS | 20 MINUTES

⚠️ Negative marking: 0.25 mark for each incorrect answer.

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SECTION 1 — ADVANCED MOCK TEST

Q1. What is the primary objective of the RBI's Integrated Ombudsman framework for customer grievance redressal:

A. To provide deposit insurance to all financial institutions

B. To provide a cost-free mechanism for resolving eligible customer complaints against covered regulated entities

C. To waive overdue loans automatically

D. To determine the policy repo rate

E. To replace statutory bank audits

Q2. Under the DICGC deposit insurance framework, the maximum insured amount for a depositor is generally:

A. ₹1 lakh per account in every bank

B. ₹2 lakh per branch

C. ₹10 lakh per depositor in every bank

D. ₹5 lakh per depositor per bank in the same right and capacity, including principal and interest

E. Unlimited coverage for savings deposits

Q3. Which platform facilitates financing of eligible trade receivables of micro, small and medium enterprises through a digital mechanism:

A. Trade Receivables Discounting System (TReDS)

B. Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI)

C. National Electronic Funds Transfer (NEFT)

D. Deposit Insurance and Credit Guarantee Corporation (DICGC)

E. Prompt Corrective Action (PCA)

Q4. Under the Account Aggregator framework, the sharing of a customer's financial information is primarily governed by:

A. Automatic disclosure to every lending institution

B. Unrestricted access for private companies

C. Customer consent under the applicable framework

D. Mandatory publication of all bank account details

E. Transfer of ownership of the customer's bank account

Q5. The primary purpose of credit guarantee cover under CGTMSE is to:

A. Guarantee profits to micro and small enterprises

B. Waive interest on every business loan

C. Replace the lender's credit appraisal process

D. Provide direct equity investment to every eligible enterprise

E. Mitigate the lender's credit risk on eligible facilities, subject to scheme conditions

Q6. A bank's Liquidity Coverage Ratio (LCR) is designed primarily to ensure that the bank maintains:

A. Capital equal to its total deposits

B. Sufficient high-quality liquid assets to cover projected net cash outflows over a 30-calendar-day stress period

C. A fixed proportion of advances in agriculture

D. A minimum return on every investment

E. Zero maturity mismatch between all assets and liabilities

Q7. Under the Basel III framework, the Net Stable Funding Ratio (NSFR) primarily promotes:

A. Higher current-account deposits irrespective of their stability

B. Elimination of all credit risk

C. A fixed interest rate on all bank loans

D. Stable funding of assets and off-balance-sheet activities over a one-year horizon

E. Replacement of capital adequacy requirements

Q8. Which system is designed to help detect discrepancies between cheque details provided by the issuer and the cheque presented for clearing:

A. Positive Pay System

B. Deposit Insurance Scheme

C. Account Aggregator framework

D. Liquidity Coverage Ratio

E. Credit Guarantee Fund Scheme

Q9. Which statement correctly distinguishes the Consumer Price Index (CPI) from the Wholesale Price Index (WPI):

A. CPI measures only exports, whereas WPI measures only imports

B. CPI measures changes in bank lending rates, whereas WPI measures deposit rates

C. CPI tracks consumer-level prices, whereas WPI tracks wholesale-level prices for their respective covered baskets

D. Both measure exactly the same basket of goods and services

E. WPI measures retail household expenditure exclusively

Q10. Under a Letter of Credit, the issuing bank's obligation is primarily linked to:

A. The physical quality of goods irrespective of documentation

B. An unconditional guarantee of the buyer's business success

C. Automatic waiver of the buyer's payment obligation

D. The seller's future profitability

E. A complying presentation under the terms and conditions of the credit

Q11. Under the standard RBI prudential framework applicable to relevant loan accounts, SMA-2 generally covers an overdue period of:

A. Up to 30 days

B. More than 60 days and up to 90 days

C. More than 30 days and up to 60 days

D. Exactly 180 days

E. More than 365 days

Q12. Under the Insolvency and Bankruptcy Code, 2016, the initial statutory time limit for completing the Corporate Insolvency Resolution Process (CIRP) is generally:

A. 30 days in every case

B. 60 days without further provisions

C. 365 days in every case without extension

D. 180 days, subject to applicable statutory provisions

E. 730 days in every case

Q13. Under the SARFAESI Act, 2002, which action is associated with enforcement of eligible security interests, subject to statutory requirements and exclusions:

A. Taking possession of and enforcing eligible secured assets in accordance with the Act

B. Imposing criminal sentences on defaulting borrowers

C. Automatically waiving every unsecured loan

D. Fixing interest rates on savings deposits

E. Guaranteeing repayment of every commercial loan

Q14. Which statement best describes the role of a credit bureau report in retail lending:

A. It guarantees that the borrower will never default

B. It replaces income verification and repayment-capacity assessment

C. It helps assess credit history, repayment behaviour and existing credit exposures

D. It determines the RBI's monetary policy rate

E. It certifies ownership of every asset offered as collateral

Q15. Which of the following is one of India's Eight Core Industries:

A. Banking

B. Insurance

C. Tourism

D. Information technology services

E. Fertilisers

Q16. Under an External Benchmark Based Lending Rate (EBLR) framework, the contractual rate on a covered floating-rate loan generally depends on:

A. The bank's dividend payout ratio alone

B. The applicable external benchmark, contractual spread and reset provisions

C. The market price of the bank's shares alone

D. The borrower's number of bank accounts alone

E. The number of branches in the borrower's district

Q17. Which institution maintains the central registry of relevant security interests under the CERSAI framework:

A. Deposit Insurance and Credit Guarantee Corporation

B. Securities and Exchange Board of India

C. Pension Fund Regulatory and Development Authority

D. Central Registry of Securitisation Asset Reconstruction and Security Interest of India

E. Insurance Regulatory and Development Authority of India

Q18. Which function is most directly responsible for independently evaluating the adequacy and effectiveness of a bank's internal controls and risk-management processes:

A. Deposit mobilisation

B. Public relations

C. Branch expansion planning

D. Treasury dealing alone

E. Internal audit

Q19. What is the primary function of a Qualified Central Counterparty (QCCP) in financial markets:

A. Issuing currency notes to commercial banks

B. Providing deposit insurance to bank customers

C. Clearing and settling eligible financial transactions while managing counterparty exposures

D. Determining the RBI policy repo rate

E. Sanctioning agricultural subsidies

Q20. Which statement correctly describes India's National Electronic Funds Transfer (NEFT) system:

A. It is available only during branch working hours

B. It settles transactions only once a week

C. It is restricted to transfers above ₹2 lakh

D. It operates 24×7, including holidays, with transactions processed in half-hourly batches

E. It is used only for interbank cash withdrawals

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SECTION 2 — ANSWER KEY

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. E

Q19. C

Q20. D

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SECTION 3 — QUICK EXPLANATIONS

Q1. B — RBI Ombudsman framework

The Integrated Ombudsman framework provides a cost-free grievance-redress mechanism for eligible complaints involving deficiency in service by covered regulated entities, subject to the applicable scheme's conditions.

Q2. D — DICGC deposit insurance

The general insurance ceiling is ₹5 lakh per depositor per bank in the same right and capacity, including principal and interest. Deposits across branches of the same bank are aggregated for this purpose.

Q3. A — TReDS

TReDS facilitates financing of eligible MSME trade receivables through a digital platform, helping suppliers obtain working capital against eligible invoices or bills.

Q4. C — Account Aggregator

The framework facilitates consent-based financial information sharing between participating financial information providers and users.

Q5. E — CGTMSE

CGTMSE provides eligible credit guarantee cover to member lending institutions for qualifying credit facilities to micro and small enterprises. It does not replace the lender's credit appraisal responsibilities.

Q6. B — Liquidity Coverage Ratio

LCR compares high-quality liquid assets with projected net cash outflows under a 30-calendar-day stress scenario. It strengthens short-term liquidity resilience.

Q7. D — Net Stable Funding Ratio

NSFR promotes a stable funding profile relative to the liquidity characteristics of assets and off-balance-sheet exposures over a one-year horizon.

Q8. A — Positive Pay System

The issuer supplies specified cheque details in advance. These details can be compared with the cheque presented for clearing to help detect discrepancies and reduce cheque fraud.

Q9. C — CPI versus WPI

CPI tracks consumer-level prices, while WPI tracks wholesale-level prices for their respective covered baskets. Their coverage and weights differ.

Q10. E — Letter of Credit

The issuing bank undertakes to honour a complying presentation under the credit's terms. Banks examine stipulated documents; an LC does not independently guarantee the physical quality of goods.

Q11. B — SMA-2

SMA-2 generally covers relevant overdue amounts outstanding for more than 60 days and up to 90 days. Applicable sector-specific and account-specific instructions must also be considered.

Q12. D — Initial CIRP period

The IBC provides an initial 180-day period for CIRP, subject to statutory provisions governing extensions and the applicable overall time limit.

Q13. A — SARFAESI

The Act enables eligible secured creditors to enforce security interests and take specified measures concerning secured assets, subject to statutory conditions, exclusions and applicable remedies.

Q14. C — Credit bureau report

Credit bureau information helps a lender assess credit history, repayment behaviour and existing credit exposures. It complements income verification and repayment-capacity assessment.

Q15. E — Fertilisers

Fertilisers are one of India's Eight Core Industries. The other seven are electricity, steel, refinery products, crude oil, coal, natural gas and cement.

Q16. B — EBLR

The lending rate for a covered floating-rate loan depends on the applicable external benchmark, contractual spread and reset provisions.

Q17. D — CERSAI

CERSAI maintains the relevant central registry of security interests. Its records help lenders identify potential competing claims over collateral and reduce the risk of multiple financing.

Q18. E — Internal audit

Internal audit independently evaluates internal controls, governance and risk-management processes within its mandate. Its findings support corrective action.

Q19. C — Qualified Central Counterparty

A QCCP clears and settles eligible financial transactions and manages counterparty exposures under prescribed standards. Central clearing does not eliminate every financial or operational risk.

Q20. D — NEFT

NEFT operates 24×7, including holidays. Transactions are processed in half-hourly batches, unlike RTGS, which settles transactions individually in real time.

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SECTION 4 — HIGH-VALUE EXAM TRAPS

🔹 Ombudsman vs DICGC: Grievance redressal is different from deposit insurance.

🔹 TReDS vs CGTMSE: TReDS facilitates receivables financing; CGTMSE provides eligible credit guarantee cover.

🔹 LCR vs NSFR: LCR addresses short-term liquidity; NSFR addresses structural funding stability.

🔹 SMA-2 vs NPA: SMA-2 is an early stress category; NPA classification follows applicable prudential norms.

🔹 SARFAESI: Enforcement powers remain subject to statutory requirements and exclusions.

🔹 Positive Pay: It helps verify cheque details but does not eliminate every form of fraud.

🔹 CPI vs WPI: Consumer-level and wholesale-level price measures are not interchangeable.

🔹 Letter of Credit: Banks examine documents against the credit's terms, not merely the physical goods.

🔹 EBLR: The external benchmark is not necessarily the final lending rate; contractual spreads and reset terms matter.

🔹 CERSAI: Security-interest registration helps identify potential collateral conflicts but does not guarantee repayment.

🔹 QCCP: Central clearing manages counterparty exposures but does not eliminate all risk.

🔹 NEFT vs RTGS: NEFT uses half-hourly batches; RTGS settles transactions individually in real time.

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SECTION 5 — CHECK YOUR SCORE

🏆 Maximum marks: 20

18–20: Excellent — strong command of banking awareness.

15–17.75: Very good — revise the concepts missed.

12–14.75: Good foundation — strengthen conceptual understanding.

Below 12: Revisit the explanations and attempt the mock again.

Scoring formula: Correct answers × 1 − incorrect answers × 0.25.

Unattempted questions carry zero marks.

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SECTION 6 — 60-SECOND RECALL

📌 RBI Ombudsman — Eligible customer grievance redressal

📌 DICGC — ₹5 lakh per depositor per bank, in the same right and capacity

📌 TReDS — MSME receivables financing

📌 Account Aggregator — Consent-based financial information sharing

📌 CGTMSE — Eligible credit guarantee cover

📌 LCR — 30-calendar-day liquidity stress coverage

📌 NSFR — Structural funding stability over one year

📌 Positive Pay — Cheque-detail verification

📌 CPI — Consumer-level prices

📌 WPI — Wholesale-level prices

📌 SMA-2 — More than 60 days and up to 90 days overdue

📌 IBC — Initial CIRP period of 180 days, subject to statutory provisions

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