Q1 | One State One RRB — Current Affairs

With reference to the recent amalgamation of Regional Rural Banks (RRBs), consider the following statements:

1. The amalgamation follows the principle of "One State One RRB" as notified by the Ministry of Finance.
2. The ownership structure of RRBs is: Central Government 50%, State Government 15%, and Sponsor Bank 35%.
3. RRBs are established under the Banking Regulation Act, 1949.

Which of the statements given above is/are correct? (a) 1 and 2 only      (b) 2 and 3 only      (c) 1 only      (d) 1, 2 and 3

Q2 | Small Finance Banks — Current Update

Consider the following statements about Small Finance Banks (SFBs) in India:

1. They were introduced based on the recommendations of the Nachiket Mor Committee.
2. The Priority Sector Lending target for SFBs is 60% of Adjusted Net Bank Credit.
3. AU Small Finance Bank recently became the first SFB to receive in-principle approval from RBI to transition into a Universal Bank.

Which of the statements given above are correct? (a) 1 and 2 only      (b) 2 and 3 only      (c) 1 and 3 only      (d) 1, 2 and 3

Q3 | Payment Banks — Boundary Test

With reference to Payment Banks in India, consider the following statements:

1. They can accept demand deposits up to ₹2 lakh per customer.
2. They can issue both debit cards and credit cards to their customers.
3. They are required to invest 75% of their demand deposit balances in Government securities or Treasury Bills with maturity up to one year.

How many of the above statements are correct? (a) Only one      (b) Only two      (c) All three      (d) None

Q4 | NBFC vs Banks — Conceptual

Consider the following statements regarding Non-Banking Financial Companies (NBFCs):

1. NBFCs registered with the RBI can accept demand deposits from the public.
2. The Cash Reserve Ratio (CRR) is not applicable to NBFCs.
3. Deposits with NBFCs are not insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC).
4. NBFCs can give loans and issue credit cards.

How many of the above statements are correct? (a) Only one      (b) Only two      (c) Only three      (d) All four

Q5 | NPA Resolution — IBC (Current + Static)

With reference to the Insolvency and Bankruptcy Code (IBC), 2016, consider the following statements:

1. The National Company Law Tribunal (NCLT) is the adjudicating authority for companies and Limited Liability Partnerships.
2. The minimum default threshold for initiating the insolvency process is ₹10 lakh.
3. The Insolvency and Bankruptcy Board of India (IBBI) is a statutory body that regulates insolvency professionals and information utilities.

Which of the statements given above is/are correct? (a) 1 and 3 only      (b) 2 and 3 only      (c) 1 and 2 only      (d) 1, 2 and 3

Q6 | SARFAESI Act — Boundary Conditions

Under the SARFAESI Act, 2002, the provisions for recovery of assets are NOT applicable to which of the following?

1. Unsecured loans
2. Agricultural land
3. Loans less than ₹1 lakh
4. Corporate bonds

Select the correct answer using the code given below: (a) 1 and 2 only      (b) 1, 2 and 3 only      (c) 2, 3 and 4 only      (d) 1, 2, 3 and 4

Q7 | PCA Framework — Updated Scope (2025)

With reference to the Prompt Corrective Action (PCA) framework of the Reserve Bank of India, consider the following statements:

1. It is applicable to scheduled commercial banks, NBFCs, and Urban Cooperative Banks.
2. The parameters monitored include Capital (CRAR), Asset Quality (Net NPA), Profitability (Return on Assets), and Leverage Ratio.
3. The PCA framework was first introduced for UCBs in 2022, replacing the earlier Supervisory Action Framework.

Which of the statements given above is/are correct? (a) 1 and 2 only      (b) 2 and 3 only      (c) 1 only      (d) 1, 2 and 3

Q8 | SWIFT Network (Current + Geopolitical)

With reference to the SWIFT messaging network, consider the following statements:

1. It is a secure messaging network that transfers money between banks across the world.
2. It was founded in 1973 and is headquartered in Belgium.
3. BRICS nations have been working on an alternative system called BRICS Pay.

Which of the statements given above is/are correct? (a) 1 and 2 only      (b) 2 and 3 only      (c) 1 and 3 only      (d) 1, 2 and 3

Q9 | RTGS and NEFT (Prelims 2025 Follow-up)

Consider the following statements regarding RTGS and NEFT:

1. In RTGS, settlement of funds takes place on a gross and real-time basis.
2. NEFT operates on a deferred net settlement basis.
3. Both RTGS and NEFT do not charge any fee for inward transactions.
4. The Unified Payments Interface (UPI) uses real-time gross settlement like RTGS.

How many of the above statements are correct? (a) Only one      (b) Only two      (c) Only three      (d) All four

Q10 | Bad Bank — NARCL-IDRCL (Current Affairs)

With reference to NARCL and IDRCL, consider the following statements:

1. NARCL is registered as an Asset Reconstruction Company and acquires NPAs of ₹500 crore and above.
2. In NARCL, Public Sector Banks hold 51% ownership, while in IDRCL, Private Sector Banks hold 51%.
3. Both operate under the Insolvency and Bankruptcy Code framework.

Which of the statements given above is/are correct? (a) 1 and 2 only      (b) 1 only      (c) 2 and 3 only      (d) 1, 2 and 3

Q11 | Co-lending Norms — Current Affairs

Consider the following statements about co-lending arrangements between banks and NBFCs:

1. Co-lending is a model where two regulated financial institutions jointly finance the same loan to a borrower.
2. Under revised guidelines, all regulated entities must retain at least 20% of each individual loan on their balance sheet.
3. If one lender classifies a borrower as NPA, the same status must be adopted by the co-lending partner.

Which of the statements given above is/are correct? (a) 1 and 2 only      (b) 1 and 3 only      (c) 2 and 3 only      (d) 1, 2 and 3

Q12 | Credit Information vs Credit Rating (Distinction)

Consider the following pairs:

Which of the pairs given above is/are correctly matched? (a) 1 and 2 only      (b) 2 only      (c) 1, 2 and 3      (d) 1 and 3 only