Bank PO / Clerk / RBI — MCQ Practice Questions & Answers

Question 1

Under the Priority Sector Lending norms, what percentage of advances must be directed to agriculture by commercial banks?

Accepted Answer

Correct answer: B. 18% — RBI mandates that commercial banks allocate at least 18% of total advances to agriculture.

Answer

A. 15%

Answer

C. 20%

Answer

D. 25%

Question 2

What is the statutory Liquidity Ratio (SLR) requirement for banks as per RBI guidelines (2024)?

Accepted Answer

Correct answer: B. 20% — RBI maintains the SLR requirement at 18% with recent adjustments around 20% for specific instruments.

Answer

A. 19%

Answer

C. 21%

Answer

D. 22%

Question 3

Which of the following factors is NOT considered while calculating the Credit Risk Weight of an asset under Basel III?

Accepted Answer

Correct answer: D. Branch location of bank — Branch location is not a factor in risk weighting. Nature of borrower, maturity, and collateral are key factors.

Answer

A. Nature of borrower

Answer

B. Maturity of loan

Answer

C. Collateral held

Question 4

Under Unified Payments Interface (UPI) 2.0, what is the new feature introduced for offline transactions?

Accepted Answer

Correct answer: B. Offline transaction capability up to Rs. 200 — UPI 2.0 introduced offline transaction capability allowing payments without internet connectivity.

Answer

A. Cross-border payments

Answer

C. Real-time gross settlement

Answer

D. Cryptocurrency integration

Question 5

What is the implementation timeline for the Indian Banks' Association (IBA) model on stress testing for credit risk?

Accepted Answer

Correct answer: A. Quarterly basis — Banks conduct stress tests on a quarterly basis as per RBI guidelines and IBA framework.

Answer

B. Semi-annually

Answer

C. Annually

Answer

D. Bi-annually with quarterly reviews

Question 6

Which of the following IS a characteristic of a Scheduled Bank as per RBI definitions?

Accepted Answer

Correct answer: B. Minimum paid-up capital and reserves of Rs. 5 lakh — A Scheduled Bank must have minimum paid-up capital and reserves of Rs. 5 lakh as per RBI definitions.

Answer

A. Operations limited to urban areas only

Answer

C. Maximum loan limit of Rs. 100 crore

Answer

D. Can only accept deposits from government

Bank PO / Clerk / RBI - MCQ Practice Questions