DSIB Quiz, Priority Sector Quiz for RBI Grade B

Dear aspirants,
We are presenting you the DSIB quiz, Priority Sector quiz for RBI Grade B Finance Section of the exam. These questions will cover the topics such as Domestic- Systematically Important Banks, Priority Sector Lending etc which are very important from exam point of view. Also do read the answers provided at the end of quiz.

1. Consider the following statement about Domestic- Systematically Important Banks (DSIBs):
   a) SIBs are perceived as banks that are ‘Too Big To Fail (TBTF)’
   b) The BCBS finalized its framework for dealing with D-SIBs in October 2012
   c) Banks having a size beyond 2% of GDP are considered as SIBs
   d) SIBs are subjected to additional common equity requirement
   Select the correct answer from following options:
   1. Only a and b
   2. Only c and d
   3. Only a, b and d
   4. All are correct
2. Among how many categories does D-SIBs are divided?
   1. Five
   2. Four
   3. Three
   4. Two
3. Which of the following banks are not among the Domestic- Systematically Important Banks?
   1. State Bank of India
   2. Punjab National Bank
   3. HDFC Bank
   4. ICICI Bank
4. How many Indian banks had been designated as Domestic- Systematically Important Banks so far?
   1. One
   2. Two
   3. Three
   4. Four
5. Who designated banks as Domestic- Systematically Important Banks?
   1. Basel Committee on Banking Supervision (BCBS)
   2. Reserve Bank of India (RBI)
   3. Bank of International Settlement (BIS)
   4. Department of Financial Services
6. Who issues priority sector lending guidelines in India?
   1. Basel Committee on Banking Supervision (BCBS)
   2. Reserve Bank of India (RBI)
   3. Bank of International Settlement (BIS)
   4. Department of Financial Services
7. Priority Sector Lending guidelines are not applicable to which out of following type of banks?
   1. Small Finance Banks
   2. Foreign banks
   3. Scheduled Commercial Banks
   4. None of these
8. Which among the following sectors does not fall under Priority Sector as Priority Sector Lending guidelines in India?
   1. Automobile
   2. Agriculture
   3. Housing
   4. Education
9. Up to what amount of Education Loan is eligible to be classified as Priority Sector?
   1. Rs 5 lakh
   2. Rs 7.5 lakh
   3. Rs 10 lakh
   4. Rs 20 lakh
10. What is total priority sector target for Domestic scheduled commercial banks (excluding Regional Rural Banks and Small Finance Banks) as percentage of Adjusted Net Bank Credit or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher?
    1. 25%
    2. 30%
    3. 35%
    4. 40%

Answers

1. 4
2. 1
   Domestic Systematically Important Banks are divided into five buckets depending upon their Systemic Importance Scores
3. 2
4. 3
   Three banks viz. State Bank of India and ICICI Bank Ltd, HDFC Bank are designated as D-SIBs in India
5. 2
   The Reserve Bank discloses the names of banks designated as D-SIBs every year in August starting from 2015.
6. 2
7. 4
8. 1
   Priority Sector includes Agriculture, Micro, Small and Medium Enterprises, Export Credit, Education, Housing, Social Infrastructure, Renewable Energy and Others
9. 3
   The Educational loans (including loans for vocational courses) up to Rs 1 million irrespective of the sanctioned amount made eligible for the priority sector
10. 4
    Total Priority Sector target to Domestic scheduled commercial banks (excluding Regional Rural Banks and Small Finance Banks) is 40 per cent of Adjusted Net Bank Credit or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher

You may also like to read following MCQs for RBI Grade B exam: 

• Economic Survey of India Quiz
• National Income MCQ
• Regulator of banks Quiz
• Read quiz on CRR, SLR, MSF, LAF

Click to go to RBI Grade B Preparation Page  | Click to read more such quizzes

Tags: DSIB Quiz for RBI Grade B, Domestic Systematically Important Banks Questions for RBI Grade B, DSIB Quiz, DSIB Quiz for RBI Grade B ESI section