RBI Guidelines MCQ for RBI Grade B – Quiz 20

Dear aspirants,
We are presenting you the RBI Guidelines MCQ for RBI Grade B Finance Section of the exam.  Also do read the answers provided at the end of quiz.

Q1. RBI has put restriction of not to carry out any business for six months on which cooperative bank?

1. 1. Punjab and Maharashtra Co-operative (PMC) BanK
   2. The Bhagat Urban Co-Operative Bank Ltd
   3. The Gujarat State Co-operative Bank
   4. TNSC BANK

Answer: (1)
The Reserve Bank of India has ordered Punjab and Maharashtra Co-operative (PMC) Bank not to do any business for six months and capped depositor withdrawals at Rs 1,000 which has been enhanced to Rs 40,000, throwing the lives of thousands of traders, self-employed and daily wage earners into disarray. The regulator has also appointed an administrator for the bank

Q2. Who was the chairman of High Powered Committee on Urban Co-operative Banks?

1. 1. H. Malegam
   2. D Subbarao
   3. Raghuram Rajan
   4. R Gandhi

Answer: (4)
The Reserve Bank of India had constituted a High Powered Committee on Urban Co-operative Banks (UCB) in 2015 under chairmanship of then Deputy Governor R Gandhi.

Q3. RBI has cut the GDP growth forecast to _______ for 2019-20.

1. 1. 5.9%
   2. 6%
   3. 6.1%
   4. 6.2%

Answer: (3)
Reserve Bank of India (RBI) has cut its economic growth forecast for 2019-20 to 6.1 per cent, a huge downward revision of 80 basis points (bps) from the projection it made in the August policy meeting

Q4. The scheme for setting up and operating the institutional mechanism for facilitating the financing of trade receivables of MSMEs from corporate buyers through multiple financiers is better known as _______?

1. 1. TReDS
   2. Factoring
   3. PMMY
   4. Forfeiting

Answer: (1)
The scheme for setting up and operating the institutional mechanism for facilitating the financing of trade receivables of MSMEs from corporate buyers through multiple financiers will be known as Trade Receivables Discounting System (TReDS).

Q5. What is the minimum paid up equity capital required to set up and operate the TReDS?

1. 1. Rs 10 crore
   2. Rs 25 crore
   3. Rs 75 crore
   4. Rs 100 crore

Answer: (2)
The TReDS will not be allowed to assume any credit risk, its minimum paid up equity capital shall be Rs. 25 crore

Q6. RBI has made it mandatory for banks to link all new floating rate personal or retail loans and floating rate loans to Micro and Small Enterprises extended by banks to external benchmark date by which date?

1. 1. 1^st April, 2019
   2. 1^st July, 2019
   3. 1^st October, 2019
   4. 1^st March, 2020

Answer: (3)
RBI has decided to link all new floating rate personal or retail loans (housing, auto, etc.) and floating rate loans to Micro and Small Enterprises extended by banks with effect from October 01, 2019 to external benchmarks

Q7. What is risk weight for consumer credit, including personal loans, but excluding credit card receivables?

1. 1. 100%
   2. 110%
   3. 125%
   4. 150%

Answer: (1)
Under the standardised approach for Credit Risk Management, consumer credit, including personal loans and credit card receivables attract a higher risk weight of 125 per cent or higher, if warranted by the external rating of the counterparty. On a review, it has been decided by RBI to reduce the risk weight for consumer credit, including personal loans, but excluding credit card receivables, to 100%

Q8. As per revised guidelines on large exposure framework (LEF), what is exposure limit to a single NBFC to Tier-I capital of the bank?

1. 1. 15%
   2. 20%
   3. 25%
   4. 30%

Answer: (2)
As a step towards harmonisation of the counterparty exposure limit to single NBFC with that of the general limit, it has been decided to raise a bank’s exposure limit to a single NBFC to 20% of Tier-I capital of the bank

Q9. Y H Malegam committee is related to ________?

1. 1. Agriculture
   2. Housing Finance
   3. NPA
   4. Microfinance

Answer: (4)

Q10. RBI has revised the priority sector lending guidelines for Export Credit. What is the maximum amount of credit limit sanctioned to export unit is eligible to be classified under priority sector?

1. 1. Rs 100 million
   2. Rs 250 million
   3. Rs 400 million
   4. Rs 500 million

Answer: (3)
In order to boost credit to export sector, it has been decided to enhance the sanctioned limit, for classification of export credit under PSL, from Rs 250 million per borrower to Rs 400 million per borrower

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