JANUARY 2024

MCQs for Practice

Q1. Recently (In December), RBI has released a notification on Card-on-File
Tokenisation (CoFT) – Enabling Tokenisation through Card Issuing Banks. Which of the
following statements is incorrect regarding the requirements for CoFT?

A. Generation of CoF Tokens for a card, through the card issuer bank, can be enabled
through mobile banking and internet banking channels.
B. The card issuer bank\ institution shall provide a complete list of merchants for
whom it can provide tokenisation services.
C. The card token so issued may be either by the card issuer or the merchant or both.
D. CoFT generation shall be done only on explicit customer consent, and with AFA
validation
E. The tokens generated by the card issuer bank shall be made available on the
merchant’s payment page, in the cardholder’s account with the merchant.

Ans. C
 MCQs for Practice

Q2. Recently (In December), RBI has released its half yearly publication, Financial
Stability Report, December 2023. SCBs’ gross non-performing assets (GNPA) ratio
continued to decline to a multi-year low of 3.2 per cent and the net non-performing
assets (NNPA) ratio to ___________ in September 2023.

A. 0.2%
B. 1.8%
C. 2.9%
D. 0.8%
E. 1.3%

Ans. D
The CRAR and CET1 ratio of
SCBs stood at 16.8 per cent
and 13.7 per cent,
respectively, in September
2023.
 MCQs for Practice
Q3. Recently (In December), RBI has released its half yearly publication, Financial Stability Report,
December 2023. which of the following statements is\are correct as per the FSR, Dec 2023?

1. The resilience of the non-banking financial companies (NBFCs) sector improved with CRAR at
27.6 per cent, GNPA ratio at 4.6 per cent and return on assets (RoA) at 2.9 per cent, respectively,
in September 2023.
2. Macro stress tests for credit risk reveal that SCBs would be able to comply with minimum capital
requirements, with the system-level CRAR in September 2024 projected at 17.8 per cent, 14.5
per cent and 12.2 per cent, respectively, under baseline, medium and severe stress scenarios.
3. IMF has projected that the global growth would decline to 3.0% in 2023 and 2.9% in 2024.
A. 1 and 2
B. 2 and 3
C. 1 and 3
D. 2 only
E. 3 only
Ans. C
Macro stress tests for credit risk reveal that
SCBs would be able to comply with
minimum capital requirements, with the
system-level CRAR in September 2024
projected at 14.8 per cent, 13.5 per cent and
12.2 per cent, respectively, under baseline,
medium and severe stress scenarios.

The resilience of the non-banking

financial companies (NBFCs) sector
improved with CRAR at 27.6 per cent,
GNPA ratio at 4.6 per cent and return on
assets (RoA) at 2.9 per cent,
respectively, in September 2023.
Macro stress tests for credit risk reveal that SCBs would be able
to comply with minimum capital requirements, with the
system-level CRAR in September 2024 projected at 14.8 per
cent, 13.5 per cent and 12.2 per cent, respectively, under
baseline, medium and severe stress scenarios.

The resilience of the non-banking financial companies (NBFCs)

sector improved with CRAR at 27.6 per cent, GNPA ratio at 4.6
per cent and return on assets (RoA) at 2.9 per cent, respectively,
in September 2023.
 MCQs for Practice

Q4. Recently, RBI released the Report on Trend and Progress of Banking in India 2022-23,
a statutory publication in compliance with Section 36 (2) of the Banking Regulation Act,
1949. The trend of improving asset quality, as measured by GNPA ratios, has been ongoing
since 2018-19 and has continued into 2022-23. The GNPA ratio for SCBs dropped to
_____________at the end of March 2023 and further decreased to 3.2% at the end of
September 2023 (H1:2023-24).

A. 3.9%
B. 3.0%
C. 3.2%
D. 4.5%
E. 4.8%

Ans. A
The capital to risk weighted assets ratio (CRAR) of SCBs
was 16.8 per cent at end-September 2023, with all bank
groups meeting the regulatory minimum requirement and
the common equity tier 1 (CET1) ratio requirement.
 MCQs for Practice
Q5. RBI recently released the Report on Trend and Progress of Banking in India 2022-23, a statutory
publication in compliance with Section 36 (2) of the Banking Regulation Act, 1949. Which of the
following statements are incorrect regarding consolidated balance sheet data given in the Report?
1. The consolidated balance sheet of SCBs (excluding RRBs) grew by 12.2 per cent in 2022-23, the
highest in nine years driven by credit to retail and services sectors; deposit growth also picked
up, although it trailed credit growth.
2. The combined balance sheet of urban co-operative banks (UCBs) expanded by 2.3 per cent in
2022-23, driven by loans and advances.
3. The consolidated balance sheet of NBFCs expanded by 11.8 per cent in 2022-23, led by double
digit credit growth.
A. 1 and 2
B. 2 and 3
C. 1 and 3
D. 2 only
E. 3 only
Ans. E
The consolidated balance sheet of SCBs (excluding RRBs) grew by 12.2 per cent in
2022-23, the highest in nine years driven by credit to retail and services sectors;
deposit growth also picked up, although it trailed credit growth.
 MCQs for Practice

Q6. IFSCA has constituted an expert committee on transition finance to formulate a regulatory
framework to promote green and sustainable debt securities. The committee, which includes
representatives from corporates, banks, standard setters, exchanges, consultants, and think
tanks, will be chaired by ______________, the India Director for Climate Policy Initiative.

A. Mr. Gagan Sidhu

B. Mr. Shalabh Tandon
C. Mr. Dhruba Purkayastha
D. Mr. Gaurav Bhagat
E. Mr. Piyush Jha
Ans. C
 H.W. Question

Q7. Recently, NABARD and ADB, launched an initiative to facilitate climate action in India’s
agriculture, natural resources, and rural development (ANR) sector. Under this initiative, a
Technical Support Unit (TSU) has been set up in NABARD which will be managed by
________________.
A. The Benchmark Company LLC
B. Intellecap Advisory Services Private Limited
C. Oak Ridge Financial
D. Paulson Investment Company LLC
E. Cary Street Partners LLC

Ans. B
NABARD and ADB, launched an initiative to facilitate climate
action in India’s agriculture, natural resources, and rural
development (ANR) sector.
 H.W. Question

Q8. Recently, RBI has released the status update, extension and enhancement in the PIDF scheme. Which
of the following statements is\are correct regarding the PIDF Scheme?
1. Beneficiaries of PM Vishwakarma Scheme in all centres have been included as merchants under the PIDF Scheme.
2. Sound Box devices and Aadhaar-enabled biometric devices are eligible for claim of subsidy under the Scheme.
3. Subsidy for special focus areas, viz., North Eastern states and U.T.s of Jammu & Kashmir and Ladakh, has been
made uniform at 75% of the cost of device, irrespective of the type of device.
4. PIDF Scheme has been extended by a further period of two years, i.e., upto December 31, 2025.

A. 1 2 and 3
B. 2, 3 and 4
C. 1, 3 and 4
D. 1, 2 and 4
E. 1 and 2
Ans. D
 Payments Infrastructure Development Fund (PIDF) –
Enhancement

To widen the scope of beneficiaries and acceptance infrastructure, following enhancements are being made:

I. Beneficiaries of PM Vishwakarma Scheme in all centres

have been included as merchants under the PIDF Scheme.

II. Sound Box devices and Aadhaar-enabled biometric

devices are eligible for claim of subsidy under the
Scheme.

III. Subsidy for special focus areas, viz., North Eastern states
and U.T.s of Jammu & Kashmir and Ladakh, has been
made uniform at 90% of the cost of device, irrespective of
the type of device.

PIDF Scheme is now extended by a further period of two years,

i.e., upto December 31, 2025.
 H.W. Question

Q1. Recently, RBI stated the Extension, Enhancements and Status Update for PIDF scheme. Which of the following

statements is\are incorrect regarding the PIDF Scheme?

1. The PIDF Scheme, operationalised by the Reserve Bank from January 01, 2021, subsidises deployment of Points
of Sale (PoS) infrastructure (physical and digital modes).
2. The corpus of PIDF stands at ₹1026.37 crore as on November 30, 2023
3. All eligible installations since the inception of the PM Vishwakarma Scheme, i.e., September 17, 2023, may prefer
claims under the PIDF Scheme.
4. An Advisory Council (AC) under the Chairmanship of the Governor, RBI, has been constituted for managing the
PIDF.
5. None of the above
Q. Recently (September 2021) NARCL was launched by the
Union Cabinet approving the government guarantee on
security receipts to buy bad loans of lenders. It has been
incorporated under the Companies Act and has applied for
license from RBI. What does R stand for in NARCL?

1. Resolution
2. Reconstruction
3. Restructuring
4. Revenue
5. None of the Above