MCQs for Practice

Q1. As per the recently released, Reserve Bank of India (Government Securities Lending)
Directions, 2023, which of the following statements is incorrect?

A. These Directions shall be applicable to all Government securities lending transactions,

undertaken in Over-the-Counter (OTC) markets.
B. Government securities issued by the Central Government including Treasury Bills shall be
eligible for lending/borrowing under a GSL transaction.
C. Government securities issued by the Central Government (including Treasury Bills) and the
State Governments shall be eligible for placing as collateral under a GSL transaction.
D. All GSL transactions shall settle through Clearing Corporation of India Ltd. (CCIL) or any other
central counterparty or clearing arrangement approved by the Reserve Bank for the purpose.
E. SLR eligible securities borrowed under a GSL transaction shall be eligible to be reckoned for
SLR by the borrower. Accordingly, such securities lent under a GSL transaction shall not be
eligible to be reckoned for SLR by the lender.

Ans. B
Government securities issued by the
Central Government excluding
Treasury Bills shall be eligible for
lending/borrowing under a GSL
transaction.

Government securities issued by the

Central Government (including
Treasury Bills) and the State
Governments shall be eligible for
placing as collateral under a GSL
transaction.
All GSL transactions shall settle
through Clearing Corporation of
India Ltd. (CCIL) or any other
central counterparty or clearing
arrangement approved by the
Reserve Bank for the purpose.
 MCQs for Practice

Q2. Recently, In exercise of the powers conferred under section 45-W of the Reserve
Bank of India Act, 1934 (hereinafter called ‘the Act’) read with section 45-U of the Act,
the Reserve Bank of India issued Reserve Bank of India (Government Securities
Lending) Directions, 2023. The minimum tenor of a GSL transaction shall be
_______________ and the maximum tenor shall be the maximum period prescribed to
cover short sales as amended from time to time.

A. 90 days
B. 60 days
C. 30 days
D. 2 days
E. 1 day

Ans. E
 MCQs for Practice
Q3. Recently, RBI issued revised instructions with regards to inoperative accounts /unclaimed
deposits in banks to help the account holders or the legal claimants to get their monies through
dedicated and more intense efforts by the banking organisations to trace the beneficiaries by various
methods. Which of the following statements is correct regarding the revised instructions?
1. This circular is applicable to all Commercial Banks (including RRBs) and all Co-operative Banks
and shall come into effect from April 1, 2024.
2. A savings/ current account shall be treated as inoperative, if there are no ‘customer induced
transactions’ in the account for a period of over one year.
3. The banks shall, based on the purpose of opening of the account, segregate the balance accounts
for beneficiaries of Central/State government schemes and for students who receive scholarship in
their CBS, so that the stipulation of ‘inoperative’ account is not applicable to these accounts.
A. 1 and 2
B. 2 and 3
C. 1 and 3
D. 2 only
E. 3 only
Ans. C
 MCQs for Practice

Q4. The credit balance in any deposit account maintained with banks, which have not been
operated upon for ___________ or more, or any amount remaining unclaimed for
______________ or more as mentioned in the “Depositor Education and Awareness” (DEA)
Fund Scheme, 2014.

A. 1 years
B. 3 years
C. 5 years
D. 10 years
E. 15 years

Ans. D
 MCQs for Practice
Q5. RBI has issued Master Direction - Reserve Bank of India (Internal Ombudsman for Regulated
Entities) Directions, 2023 to harmonise the instructions applicable to the various regulated
entities on the Internal Ombudsman (IO) mechanism. Which of the following applicability norms
are correct?
1. Banks having 20 or more banking outlets in India, whether such bank is incorporated in India
or outside India.
2. Deposit-taking NBFCs (NBFCs-D) with 10 or more branches and Non-Deposit taking NBFCs
(NBFCs-ND) with asset size of Rs.5,000 crore and above and having public customer interface.
3. All NBSPs with more than one crore Pre-paid Payment Instruments outstanding as on March
31, 2023, or thereafter.
A. 1 and 2
B. 2 and 3
C. 1 and 3
D. 2 only
E. 3 only
Ans. B
In exercise of the powers conferred by
• Section 35A of Banking Regulation Act, 1949,
• Section 45L read with 45M of the Reserve Bank of India Act, 1934,
• sub-section (1) of Section 11 of the Credit Information Companies (Regulation) Act, 2005
• Section 18 of the Payment and Settlement Systems Act, 2007,
The RBI, being satisfied that it is necessary in the public interest to do so, hereby, issues the Directions hereinafter specified.
 MCQs for Practice
Q6. RBI has issued Master Direction - Reserve Bank of India (Internal Ombudsman for Regulated
Entities) Directions, 2023. Which of the following statements are incorrect in regard to the office
of Internal Ombudsman?
1. The Internal Ombudsman shall not be over 65 years of age before the completion of the
tenure.
2. The IO shall either be a retired or serving officer, in the rank equivalent to a General Manager
of another bank / Financial Sector Regulatory Body / NBSP / NBFC / CIC, having necessary
skills and experience of minimum seven years of working in relevant areas.
3. The tenure of the IO/ Deputy IO in the regulated entity shall be a fixed term of not less than
three years, but not exceeding five years.
A. 1 and 2
B. 2 and 3
C. 1 and 3
D. 1 only
E. 2 only
Ans. D
 MCQs for Practice

Q7. Recently, RBI has issued Review of Instructions on Bulk Deposits for Urban Co-operative
Banks (UCBs). “Bulk Deposit” for Primary (Urban) Co-operative Banks would now mean Single
Rupee term deposits of Rupees ___________for Scheduled UCBs categorised as Tier 3 and 4 UCBs
under the revised regulatory framework.

A. three crore and above

B. two crore and above
C. one crore and above
D. fifty lakh and above
E. fifteen lakh and above

Ans. C
Single Rupee term deposits of Rupees one crore and
above for Scheduled UCBs categorised as Tier 3 and 4 UCBs
under the revised regulatory framework.

Single Rupee term deposits of Rupees fifteen lakh and

above for all other UCBs (i.e., other than Scheduled UCBs
in Tier 3 and 4).
 MCQs for Practice

Q8. Recently, The IRDAI has relaxed certain norms on investment in infrastructure debt funds
(IDFs) of non-banking financial companies (NBFCs) by insurance companies. Which of the
following conditions are correct for Insurers to be allowed to make investments in IDF-NBFCs
which will be reckoned as infrastructure investments?
1. IDF NBFCs should be registered with SEBI.
2. These debt securities will have a residual tenure of not less than 10 years.
3. A minimum credit rating of AA or its equivalent by a Credit Rating Agency registered with
the SEBI to be eligible for approved investment.
A. 1 and 2
B. 2 and 3
C. 1 and 3
D. 2 only
E. 3 only
Ans. E
 H.W. Question

Q1. The Ministry of Rural Development and State Bank of India signed a memorandum of understanding
(MoU) to facilitate enterprise financing for rural self-help groups (SHG) women. State Bank of India
introduced a specialised financial product Svyam Siddha, exclusively tailored for SHG women entrepreneurs seeking
loans up to Rs ______________.

A. 2 Lakhs
B. 5 Lakhs
C. 10 Lakhs
D. 15 Lakhs
E. 20 Lakhs

Ans. ?
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