IDBI Junior Assistant Manager Previous Year Question Papers

IDBI Junior Assistant Manager Previous Year Question Papers and Solutions Pdf | MCQs Exam

Exam Pattern

  • The exam comprises 200 multiple choice questions of 1 mark each.
  • The sections include Reasoning, English Language, Quantitative Aptitude, and General Awareness.
  • Make sure you are familiar with the number of questions, marks allocation, time limit for each section.

Preparation Tips

  1. Go through previous year question papers – Solve as many previous year papers as possible. This will help you understand the level of questions asked, topics covered, exam pattern and important topics.
  2. Prepare notes – Prepare quick revision notes for all sections, especially General Awareness which has current affairs questions. Keep updating your notes.
  3. Improve your speed and accuracy – Practice solving mock tests on a regular basis to improve your speed and accuracy to perform well in the exam. Learn shortcuts and tricks.
  4. Work on your weaknesses – Identify sections and topics you are weak in, and improve them through regular practice. Take mock tests to assess your performance.
  5. Current Affairs – Read magazines, newspapers and GK books daily for current affairs preparation. Create monthly revision notes.
  6. Revise formulas, concepts – Revise formulas, financial concepts, accounting principles, commercial awareness needed for the quantitative aptitude and reasoning sections.
  1. Who is the current MD & CEO of IDBI Bank?
  • Answer: Rakesh Sharma
  1. When was IDBI Bank founded?
  • Answer: 1964
  1. What is the tagline of IDBI Bank?
  • Answer: Bank Aisa, Dost Jaisa
  1. What is the headquarters of IDBI Bank located?
  • Answer: Mumbai
  1. IDBI stands for?
  • Answer: Industrial Development Bank of India
  1. Who owns the majority stake in IDBI Bank as of 2019?
  • Answer: Life Insurance Corporation of India (LIC)
  1. What is the foundation day of IDBI Bank?
  • Answer: July 1
  1. How many branches does IDBI Bank have as of March 2021?
  • Answer: 1,890
  1. Who was the first chairman of IDBI Bank?
  • Answer: S.S. Nadkarni
  1. Which year did IDBI Bank receive its universal banking license?
  • Answer: 2004
  1. What platform does IDBI Bank use for internet banking?
  • Answer: InstaNet
  1. What is the minimum balance requirement for regular savings account in IDBI Bank?
  • Answer: Rs 1000
  1. What is IDBI Bank’s benchmark lending rate called?
  • Answer: IDBI Bank Base Rate (IBBR)
  1. Which committee recommended the establishment of IDBI?
  • Answer: D.R. Gadgil Study Group
  1. Where was the first branch of IDBI Bank opened?
  • Answer: Pune
  1. What is the maximum deposit amount insured by DICGC in IDBI Bank?
  • Answer: Rs 5 lakhs
  1. Who owns the iconic IDBI tower in Mumbai?
  • Answer: IDBI Bank
  1. Which bank merged with IDBI Bank in 2019?
  • Answer: United Western Bank
  1. What is the minimum account balance required for an IDBI basic savings bank deposit account?
  • Answer: Nil
  1. What does RTGS stand for with reference to banking transactions?
  • Answer: Real Time Gross Settlement
  1. What is the full form of NACH in banking?
  • Answer: National Automated Clearing House
  1. What does NEFT stand for in banking transactions?
  • Answer: National Electronic Funds Transfer
  1. What does ECS stand for in reference to payments system?
  • Answer: Electronic Clearing System
  1. Which committee is constituted by RBI to establish IDBI Bank?
  • Answer: S.H. Khan committee
  1. Which among the following is the first Indian bank to introduce plastic money facility? a) Central Bank of India
    b) IDBI Bank c) RBI d) Punjab National Bank
  • Answer: IDBI Bank
  1. Which financial service helps banks determine credit to lend? a) Credit scoring b) Financial analysis c) Wealth management d) Portfolio investment
  • Answer: Credit scoring
  1. What does the CAMELS rating system evaluate for banks? a) Liquidity b) Management quality
    c) Asset quality d) All of the above
  • Answer: All of the above
  1. What does SLR stand for in banking system?
  • Answer: Statutory Liquidity Ratio
  1. What is the function of the NABARD? a) Implements rural development programmes b) Provides credit for agriculture and rural development c) Regulates regional rural banks d) All of the above
  • Answer: All of the above
  1. Priority sector lending mainly focuses on: a) Export credit b) Education loan
    c) Agriculture credit d) Housing loan
  • Answer: Agriculture credit
  1. What does the term CASA refer to in banking?
  • Answer: Current Account Savings Account
  1. What does NIM stand for in banking terminology?
  • Answer: Net Interest Margin
  1. Which of the following is a function of commercial banks? a) Providing transactional services b) Lending funds
    c) Moving funds across the economy
    d) All of the above
  • Answer: All of the above
  1. Why is KYC important for banks? a) Reduce financial frauds b) Prevent money laundering
    c) Follow RBI guidelines d) All of the above
  • Answer: All of the above
  1. What does the term NPA denote with regards to banking loans?
  • Answer: Non Performing Asset
  1. Demand draft and cheque are examples of which type of deposit?
    a) Term deposit b) Recurring deposit
    c) Current deposit
    d) Fixed deposit
  • Answer: Current deposit
  1. Which among the following is not a function of the RBI? a) Regulation of banks b) Govt treasury operations
    c) Currency management d) Credit control
  • Answer: Govt treasury operations
  1. What aspect does CRR regulate for commercial banks? a) Liquidity
    b) Savings rate
    c) Credit growth d) Borrowing capacity
  • Answer: Liquidity
  1. EXIM bank is the key organization responsible for: a) Energy sector financing b) Export-Import financing
    c) Education loan financing d) Entertainment industry financing
  • Answer: Export-Import financing
  1. What does FIU stand for in financial sector?
  • Answer: Financial Intelligence Unit
  1. What does the credit-deposit or CD ratio indicate? a) Credit quality b) Savings trend
    c) Investment demand d) Liquidity position of bank
  • Answer: Credit quality
  1. Who sets the rates for savings and term deposits for Indian banks? a) RBI b) Individual banks
    c) Ministry of Finance d) Indian Banks Association
  • Answer: Individual banks
  1. What does a higher cash reserve ratio indicate for commercial banks?
    a) Higher liquidity with RBI b) Lesser amount available for lending c) Better profitability
    d) Increased credit growth potential
  • Answer: Lesser amount available for lending
  1. What does the BASEL framework refer to?
    a) Corporate governance standards for banks
    b) Risk monitoring for banking sector c) Standard accounting norms d) Stress testing framework
  • Answer: Risk monitoring for banking sector
  1. What types of risk does the BASEL framework address? a) Operational b) Systemic c) Market
    d) All of the above
  • Answer: All of the above
  1. The concept of shadow banking refers to:
    a) Fund raising outside of banking sector b) Non-traditional banking entities
    c) Banking frauds d) Black money generation
  • Answer: Non-traditional banking entities
  1. What does securitisation in finance refer to? a) Trading of securities
    b) Raising funds through assets c) Standardization of financial instruments
    d) Security Sales
  • Answer: Raising funds through assets
  1. What does cherry-picking in banking loans refer to? a) Only selecting safe borrowers
    b) Focusing on priority sector c) Meeting targets through procedural compliance
    d) High value corporate loans
  • Answer: Only selecting safe borrowers
  1. Which is an example of narrow banking?
    a) Investment banking
    b) Housing finance c) Consumer banking d) Savings deposits and payments
  • Answer: Savings deposits and payments
  1. An angel investor typically invests in which type of firm?
    a) Early stage startup companies
    b) Commodities trading c) Established manufacturing sector d) Agriculture sector
  • Answer: Early stage startup companies
  1. What is the difference between public and private banking? a) Customer base b) Ownership structure c) Size of operations d) Products/services
  • Answer: Ownership structure
  1. Which among the following financial entity is responsible for development of MSME sector? a) NABARD b) SIDBI
    c) EXIM Bank
    d) NHB
  • Answer: SIDBI
  1. What is the objective of strategic investments by a commercial bank? a) Fund priority sectors b) Acquire new customers c) Generate additional revenue
    d) Expand product portfolio
  • Answer: Expand product portfolio
  1. Banks choose assets for investment based on review of:
    a) Market trends b) Credit rating
    c) Risk profile
    d) All of the above
  • Answer: All of the above
  1. Which among the following would a bank classify as tier I capital? a) Equity shares
    b) Reserves c) Bonds d) Fixed deposits
  • Answer: Equity shares
  1. What does delinquency on a loan account indicate from bank’s perspective? a) Fraud risk b) Default risk
    c) Write-off potential
    d) Scrutiny requirement
  • Answer: Default risk
  1. What is the key expectation from a loan underwriter?
    a) Error-free paperwork b) Risk evaluation
    c) Verification of documents d) Ensuring procedural completeness
  • Answer: Risk evaluation
  1. Which of the following can be securitised by banks to raise funds? a) Personal loans
    b) Credit card receivables
    c) Auto loans d) All of the above
  • Answer: All of the above
  1. What is the benefit of syndicated loans for banks?
    a) Increased revenue b) Diversified risk exposure
    c) Larger customer base d) Access to untapped markets
  • Answer: Diversified risk exposure
  1. Which among the following loan product is most susceptible to political risk for banks? a) Agriculture
    b) Power c) Housing d) Automobiles
  • Answer: Power
  1. What is the key difference between microfinance and microcredit? a) Loan amount b) Target customers
    c) Purpose
    d) Risk level
  • Answer: Purpose
  1. Which of the following best describes the business correspondent model in Indian banking?
    a) Doorstep banking
    b) Paperless account opening c) Biometric ATMs d) Mobile wallet payments
  • Answer: Doorstep banking
  1. What does delinquency in loan account indicate for banks? a) Default risk is high b) More collection efforts needed c) Potential for write off d) All of the above
  • Answer: All of the above
  1. Basel III norms aim to improve which aspects of banking sector? a) Risk monitoring b) Capital buffers
    c) Governance
    d) All of the above
  • Answer: All of the above
  1. What is the importance of CASA deposits for commercial banks? a) Provide funds for lending b) Indicates customer trust c) Lowers cost of funds
    d) All of the above
  • Answer: All of the above
  1. Which among the following is the apex body for retail payments in India?
    a) NPCI b) RBI
    c) IBA
    d) BCSBI
  • Answer: NPCI
  1. What does natural hedging indicate with regards to foreign exchange risk? a) Trade in same currency
    b) Offset imports with exports c) Dollar-Rupee swap
    d) Forward contract to buy currency
  • Answer: Offset imports with exports
  1. Treasury function in banks aims to manage primarily:
    a) Liquidity and funds management
    b) Investment of surplus funds
    c) Currency positions d) Capital planning
  • Answer: Liquidity and funds management
  1. What does due diligence by banks involve before project financing? a) Technical feasiblity study
    b) Financial viability assessment c) Promoter credentials and track record d) All of the above
  • Answer: All of the above
  1. What is the key expectation from a banking business analyst? a) Monitoring economy and client profiles b) Forecasting future business trends
    c) Designing new financial products d) Preparing performance reports
  • Answer: Monitoring economy and client profiles
  1. Effective KYC guidelines for banks aim to curb:
    a) Tax evasion b) Corruption
    c) Money laundering
    d) Market manipulation
  • Answer: Money laundering
  1. What does CDR refer to in the Indian banking context? a) Credit Default Ratio
    b) Corporate Debt Restructuring
    c) Common Documentation Requirement
    d) Customer Data Repository
  • Answer: Corporate Debt Restructuring
  1. RBI’s monetary policy stance refers to: a) Interest rate outlook
    b) Exchange rate outlook c) Inflation outlook
    d) Liquidity outlook
  • Answer: Interest rate outlook
  1. What does due diligence by banks involve before project financing?
    a) Technical feasibility study b) Financial viability assessment
    c) Promoter credentials and track record d) All of the above
  • Answer: All of the above
  1. The SARFAESI Act facilitates which of the following? a) Bad loan recovery
    b) Consortium lending
    c) Government loan recast d) Inter-bank transactions
  • Answer: Bad loan recovery
  1. What does ALCO stand for in commercial banks? a) Annual Loss Control Office
    b) Asset Liability Management Committee
    c) Audit and Legal Compliance Office d) Agency for Large Corporates
  • Answer: Asset Liability Management Committee
  1. What does NEFT transaction facility allow? a) Paperless fund transfer b) Instant money transfer
    c) High value transactions d) International remittance
  • Answer: Instant money transfer
  1. Which among the following loan product is most susceptible to political risk for banks? a) Agriculture
    b) Power c) Housing d) Automobiles
  • Answer: Power
  1. What does delinquency on a loan account indicate from bank’s perspective? a) Fraud risk b) Default risk
    c) Write-off potential
    d) Scrutiny requirement
  • Answer: Default risk
  1. What is the key expectation from a loan underwriter?
    a) Error-free paperwork b) Risk evaluation
    c) Verification of documents d) Ensuring procedural completeness
  • Answer: Risk evaluation
  1. Which of the following can be securitised by banks to raise funds? a) Personal loans
    b) Credit card receivables
    c) Auto loans d) All of the above
  • Answer: All of the above
  1. What is the benefit of syndicated loans for banks?
    a) Increased revenue b) Diversified risk exposure
    c) Larger customer base d) Access to untapped markets
  • Answer: Diversified risk exposure
  1. What does delinquency in loan account indicate for banks? a) Default risk is high b) More collection efforts needed c) Potential for write off
    d) All of the above
  • Answer: All of the above
  1. Basel III norms aim to improve which aspects of banking sector?
    a) Risk monitoring b) Capital buffers c) Governance
    d) All of the above
  • Answer: All of the above
  1. What is the importance of CASA deposits for commercial banks?
    a) Provide funds for lending b) Indicates customer trust
    c) Lowers cost of funds d) All of the above
  • Answer: All of the above
  1. Which among the following is the apex body for retail payments in India?
    a) NPCI
    b) RBI c) IBA d) BCSBI
  • Answer: NPCI
  1. What does natural hedging indicate with regards to foreign exchange risk?
    a) Trade in same currency b) Offset imports with exports
    c) Dollar-Rupee swap d) Forward contract to buy currency
  • Answer: Offset imports with exports
  1. Treasury function in banks aims to manage primarily: a) Liquidity and funds management
    b) Investment of surplus funds c) Currency positions
    d) Capital planning
  • Answer: Liquidity and funds management
  1. What does due diligence by banks involve before project financing?
    a) Technical feasiblity study b) Financial viability assessment
    c) Promoter credentials and track record d) All of the above
  • Answer: All of the above
  1. What is the key expectation from a banking business analyst?
    a) Monitoring economy and client profiles b) Forecasting future business trends
    c) Designing new financial products d) Preparing performance reports
  • Answer: Monitoring economy and client profiles
  1. Effective KYC guidelines for banks aim to curb:
    a) Tax evasion
    b) Corruption c) Money laundering
    d) Market manipulation
  • Answer: Money laundering
  1. What does CDR refer to in the Indian banking context? a) Credit Default Ratio
    b) Corporate Debt Restructuring c) Common Documentation Requirement d) Customer Data Repository
  • Answer: Corporate Debt Restructuring
  1. RBI’s monetary policy stance refers to:
    a) Interest rate outlook b) Exchange rate outlook
    c) Inflation outlook d) Liquidity outlook
  • Answer: Interest rate outlook
  1. The SARFAESI Act facilitates which of the following?
    a) Bad loan recovery b) Consortium lending
    c) Government loan recast
    d) Inter-bank transactions
  • Answer: Bad loan recovery
  1. What does ALCO stand for in commercial banks? a) Annual Loss Control Office
    b) Asset Liability Management Committee c) Audit and Legal Compliance Office
    d) Agency for Large Corporates
  • Answer: Asset Liability Management Committee
  1. What does NEFT transaction facility allow?
    a) Paperless fund transfer
    b) Instant money transfer c) High value transactions
    d) International remittance
  • Answer: Instant money transfer
  1. What is the concept of UPI in digital payments? a) Unified Payments Interface
    b) United Processes for Interbank
    c) Uniform Protocol for Transactions
    d) Unified Platform for India
  • Answer: Unified Payments Interface
  1. Which act provides the legal framework for regulation of payment systems in India? b) Payment and Settlement Systems Act, 2007 c) Negotiable Instruments Act, 1881
    d) RBI Act, 1934
  • Answer: Payment and Settlement Systems Act, 2007
  1. Who regulates the peer to peer (P2P) lending platforms in India? a) RBI b) SEBI c) IRDAI d) PFRDA
  • Answer: RBI
  1. What is the full form of PMLA as per banking regulations?
  • Answer: Prevention of Money Laundering Act
  1. What does STR stand for in the context of banking transactions?
  • Answer: Suspicious Transaction Report
  1. Which of the following best describes the concept of shadow banking? a) Private banking b) Wealth management c) Non-banking financial intermediaries d) Money laundering
  • Answer: Non-banking financial intermediaries
  1. What does securitisation of assets by banks aim to achieve? a) Access lower cost funds b) Reduce credit risk
    c) Meet priority sector targets d) Increase fee-based revenue
  • Answer: Access lower cost funds
  1. What is the economic rationale behind priority sector lending norms? a) Financial inclusion
    b) Support vulnerable sectors c) Expand bank’s business d) Corporate social responsibility
  • Answer: Support vulnerable sectors
  1. The economic concept of moral hazard in lending refers to _____
  • Answer: Lack of incentive to guard against risk
  1. What does first loss default guarantee (FLDG) signify in the context of bank loans?
  • Answer: Protection against potential NPAs
  1. What is the role of credit bureaus in the lending system?
  • Answer: Provide data on credit behavior of borrowers
  1. Which of the following loan product is not typically offered by micro finance institutions? a) Business loans b) Agriculture loans c) Livestock loans
    d) Housing loans
  • Answer: Housing loans
  1. What does BC model stand for in Indian banking system?
  • Answer: Business Correspondent
  1. What are the key benefits of mobile banking for customers? a) Convenience b) Secure transactions c) Instant alerts d) All of the above
  • Answer: All of the above
  1. The economic rationale behind bank mergers is to _____
  • Answer: Achieve scale and operational efficiency
  1. Which among the following loan is categorized as priority sector by RBI? a) Retail loans b) Service sector loans c) Education loans d) Tourism industry loans
  • Answer: Education loans
  1. The SARFAESI act facilitates faster recovery in case of _____ loans
  • Answer: NPA
  1. Which financial institution promotes development of urban cooperatives in India? a) NABARD b) SIDBI
    c) NHB d) MUDRA
  • Answer: NHB
  1. Which of the following factor has the maximum weight in risk calculation as per BASEL norms? a) Management quality
    b) Capital adequacy c) Asset quality d) System and control
  • Answer: Asset quality
  1. What does securitisation of assets allow banks to achieve? a) Access more funds b) Reduce default risk exposure c) Meet priority sector lending norms d) Increase fee based revenue
  • Answer: Access more funds
  1. The economic concept of adverse selection in lending refers to _____
  • Answer: High risk borrowers are more inclined to apply for loans
  1. Which rating agency assesses the risk levels of Indian banks? a) CIBIL b) CRISIL c) ICRA d) CARE
  • Answer: CRISIL
  1. Which committee is set up by banks to monitor asset liability mismatches and liquidity risk? a) Audit Committee b) Risk Management Committee
    c) ALCO d) NPA Monitoring Committee
  • Answer: ALCO
  1. Which among the following would be an example of narrow banking? a) Housing finance b) Payment wallets c) Investment advisory d) Insurance
  • Answer: Payment wallets
  1. Under BASEL III norms, what is the minimum prescribed common equity Tier 1 capital ratio? a) 4.5% b) 6% c) 8%
    d) 10%
  • Answer: 8%
  1. The primary objective of KYC norms is: a) Customer service b) Minimize frauds c) Prevent money laundering
    d) Expand customer base
  • Answer: Prevent money laundering
  1. What does delinquency in loan account refer to from bank’s perspective?
  • Answer: Delay or default in EMI repayment
  1. Which committee formulated policy guidelines for new bank licenses in India? a) Usha Thorat Committee
    b) Nachiket Mor Committee
    c) YH Malegam Committee
    d) SK Ghosh Committee
  • Answer: Nachiket Mor Committee
  1. Under BASEL III guidelines, which of the following would be considered tier I capital for banks? a) Perpetual Debt Instruments b) Foreign Currency Instruments c) Long term Bonds
    d) Paid up Equity
  • Answer: Paid up Equity
  1. Apart from credit risk, what are the other key risks banks face? a) Liquidity risk b) Market risk c) Operational risk d) All of the above
  • Answer: All of the above
  1. The main objective behind dollar rupee swap arrangements is to: a) Boost India’s forex reserves
    b) Stabilize the exchange rate
    c) Enable overseas trade settlements d) Finance infrastructure projects
  • Answer: Stabilize the exchange rate
  1. Effective customer service helps banks to _____
  • Answer: Enhance brand image and retain customers
  1. The NIMO committee constituted by RBI was set up for which purpose? a) Bank licensing policies b) Universal banking model
    c) Mobile banking guidelines
    d) Financial inclusion
  • Answer: Mobile banking guidelines
  1. Priority sector lending mainly focuses on supporting:
    a) Agriculture sector b) Exports sector
    c) Housing sector d) Infrastructure sector
  • Answer: Agriculture sector
  1. Which of the following best describes the business correspondent banking model in India? a) Online account opening b) Doorstep banking services
    c) Paperless branches d) Mobile branches
  • Answer: Doorstep banking services
  1. The SARFAESI Act allows banks to recover bad loans faster through which means?
    a) Debt Recovery Tribunals
    b) Out-of-court settlement c) Asset seizure and auction
    d) Wilful defaulter designation
  • Answer: Asset seizure and auction
  1. What does ALM refer to in commercial banks? a) Annual Loss Mechanism
    b) Asset Liability Mismatch
    c) Asset Liability Management
    d) After Loan Monitoring
  • Answer: Asset Liability Management
  1. What is the primary objective of monetary policy “tightening” by the central bank? a) Increase money supply to boost output b) Increase interest rates to control inflation
    c) Loosen bank reserves to increase lending
    d) Decrease lending rates to stimulate growth
  • Answer: Increase interest rates to control inflation
  1. Under BASEL III norms, banks in India need to maintain minimum prescribed capital conservation buffer of a) 1% b) 2% c) 2.5%
    d) 3%
  • Answer: 2.5%
  1. NEFT is an electronic fund transfer system that operates on a _____ basis.
  • Answer: Deferred Net Settlement
  1. Effective implementation of NCLT facilitates faster resolution of _____ accounts
  • Answer: Stressed
  1. Under priority sector lending guidelines, what percentage of Adjusted Net Bank Credit goes to Agriculture sector? a) 15%
    b) 12% c) 18%
    d) 10%
  • Answer: 18%
  1. Banking correspondent model allows provision of banking services through: a) VLEs
    b) NGOs c) MFIs d) All of the above
  • Answer: All of the above
  1. Which of the following deposits will be considered most stable or low cost for banks? a) Current Account
    b) Recurring Deposit
    c) Fixed Deposit d) Savings Account
  • Answer: Current Account
  1. In the BASEL framework, operational risk arises due to: a) External events
    b) Deficiencies in processes/systems
    c) Human errors d) All of the above
  • Answer: All of the above
  1. Under KYC norms, submission of Aadhar card is: a) Mandatory for all customers
    b) Required only for new accounts c) Needed only for vulnerable customers
    d) Voluntary except notified accounts
    d) Voluntary except notified accounts
  2. Which of the following would be part of tier 2 capital of banks as per BASEL III?
    a) Perpetual Debt Instruments
    b) Preference Shares c) Revaluation Reserves
    d) Long term infrastructure bonds
  • Answer: Perpetual Debt Instruments
  1. The concept “Know Your Customer” norms in banking aims to: a) Provide better service
    b) Minimize frauds c) Track transactions
    d) Detect money laundering
  • Answer: Detect money laundering
  1. Treasury operations of banks involve management of? a) Cash resources & liquidity b) Investment portfolio c) Currency positions & forex
    d) All of the above
  • Answer: All of the above
  1. RBI monetary policy rate which acts as benchmark for bank lending rates is: a) Repo rate
    b) Reverse Repo rate
    c) CRR
    d) SLR
  • Answer: Repo rate
  1. What does merchant discount rate refer to in credit card transactions? a) RBI discount on bulk transactions
    b) Charges paid by merchant to bank
    c) Charges paid by cardholder d) Interchange charges
  • Answer: Charges paid by merchant to bank
  1. The umbrella organization for setting retail payments in India is: a) CIBIL
    b) NPCI
    c) FEDAI d) BCSBI
  • Answer: NPCI
  1. Which of the following would banks classify as CASA deposits? a) Term Deposits
    b) NRI Deposits
    c) Recurring Deposits
    d) Savings Account
  • Answer: Savings Account
  1. What does credit scoring of borrowers allow banks to do? a) Reduce processing time
    b) Gauge repayment capacity
    c) Outsource credit approval
    d) Reward loyal customers
  • Answer: Gauge repayment capacity
  1. Banks in India need to maintain a reserve repo liquid assets under which RBI policy? a) PPF b) SLR
    c) RRR
    d) CRR
  • Answer: CRR
  1. What does CKYCR stand for in the context of Indian banking industry?
  • Answer: Central Know Your Customer Registry
  1. The primary function of development finance institutions (DFIs) is to provide: a) Housing Loans
    b) MSME financing
    c) Infrastructure financing
    d) Agri value chain financing
  • Answer: Infrastructure financing
  1. MICR code enables which banking process?
  • Answer: Automated cheque clearance
  1. Which among the following enhances the Tier 1 capital for banks under BASEL norms? a) Long term infrastructure bonds
    b) Innovative Perpetual Debt Instruments
    c) Revaluation reserves d) Preference share capital
  • Answer: Innovative Perpetual Debt Instruments
  1. Technological infrastructure for digital payments and banking in India is built and managed by? a) RBI
    b) NPCI c) NABARD
    d) Public Sector Banks
  • Answer: NPCI
  1. Which among the following would boost CASA deposits for banks? a) Higher interest rates on term deposits to attract more funds
    b) Increase base rates or minimum balance requirement to discourage small savers c) Promotional offers and better digital product proposition to attract retail customers
    d) Focus lending towards corporate sector only
  • Answer: Promotional offers and better digital product proposition to attract retail customers
  1. As per prevailing RBI norms, what is the maximum permissible stake for foreign portfolio investors in private banks? a) 26% b) 49%
    c) 74% d) 100%
  • Answer: 74%
  1. Which among the following measures can help banks mitigate against risk of loan defaults?
    I. Pricing products as per risk profile of customers II. Following prudent risk management policy for loan underwriting III. Monitoring early warning signals of stress at account level Select the correct option: a) I and II b) II and III
    c) I and III
    d) All of the above
  • Answer: All of the above
  1. Which of the following constitutes the money supply in economy as defined by RBI? I. Currency in circulation
    II. Bank deposits III. Corporate Bonds IV. Credit to Government Identify the right combination: a) I and II b) I, II and III c) I, II and IV
    d) All of the above
  • Answer: I, II and IV
  1. Under restructuring of loans, what does SDR stand for?
  • Answer: Strategic Debt Restructuring
  1. Which of the following risk mitigation technique is used by banks to hedge against fluctuations in interest or exchange rate?
  • Answer: Derivatives
  1. Prompt Corrective Action framework is applicable to which entities?
  • Answer: Commercial Banks
  1. IFRS guidelines pertain to: a) Accounting standards for corporates b) Market risk measures for banks
    c) Lending limits for large exposures
    d) NPA classification norms
  • Answer: Accounting standards for corporates
  1. Bank rate is:
    a) Rate at which banks can access overnight liquidity from RBI
    b) Benchmark rate at which banks can invest in G-Secs c) Floor rate below which banks cannot lend to customers d) Ceiling rate above which banks cannot acquire funds from market
  • Answer: Rate at which banks can access overnight liquidity from RBI
  1. Under BASEL III norms for capital adequacy measurement, which approach is followed by RBI? a) Standardized Approach for credit, market and operational risks
    b) Advanced Approach for credit, market and operational risks c) Standardized approach for credit risk and Basic Indicator approach for operational risk
    d) Internal models based approach only for market risk
  • Answer: Standardized approach for credit risk and Basic Indicator approach for operational risk
  1. What is SHG bank linkage program for promoting financial inclusion? a) Customized product program for rural women b) Scheme for providing vocational training to women
    c) Initiative to improve access to credit for SHGs
    d) Platform for marketing handicraft products of village artisans
  • Answer: Initiative to improve access to credit for SHGs
  1. Which of the following used in risk management helps banks to overcome difficulties in raising funds?
    a) CDS b) Factoring c) Forfaiting
    d) Leasing
  • Answer: Forfaiting
  1. What does the Net Stable Funding Ratio under the BASEL III liquidity risk framework establish?
    a) Mismatch in asset and liability maturities
    b) Adequacy of stock of stable funding
    c) Concentration risks from excessive interbank lending
    d) Excess regulatory assets in proportion to liabilities
  • Answer: Adequacy of stock of stable funding
  1. Which of the following can be securitized by banks to raise funds through alternative channel? a) Agriculture loans b) Credit card dues
    c) Auto loans d) All of the above
  • Answer: All of the above
  1. In banking parlance what is churning of the portfolio focused on? a) Maximizing fee income from sales
    b) Account retention by cross selling c) Enhancing size and quality of loan book
    d) Following regulatory guidelines
  • Answer: Maximizing fee income from sales
  1. Under corporate debt restructuring scheme, which entities act as funding institutions?
  • Answer: Banks and Financial Institutions
  1. In the context of banking industry, what does CRR signify? a) Capital Reserve Ratio
    b) Credit and Risk Rating
    c) Cash Reserve Ratio
    d) Common Reporting Standard
  • Answer: Cash Reserve Ratio
  1. Under BASEL III framework, accumulated losses and cash flow hedge reserves are part of which component regulatory capital?
    a) Additional Tier I b) Negative Tier I
    c) Tier II
    d) Not part of regulatory capital
  • Answer: Negative Tier I
  1. What does a Vanilla ATM provide to banking customers?
    a) Regular transaction capability
    b) Offsite card activation
    c) Mobile top up function
    d) Fixed deposits and loan originating capability
  • Answer: Regular transaction capability
  1. Which term is used when investments do not earn adequate returns thereby not covering cost of raising funds? a) Asset erosion b) Negative carry
    c) Risk reversal
    d) Yield compression
  • Answer: Negative carry
  1. Which among the following financial products is traded over the counter rather than on an exchange?
    a) Stocks b) Commodities
    c) Currencies
    d) Bonds
  • Answer: Currencies
  1. Under BASEL III norms, which instrument is eligible for additional tier I capital?
    a) Perpetual Non Cumulative Preference Shares b) Revaluation Reserves
    c) General loan loss reserves
    d) Long term subordinated debt instruments
  • Answer: Perpetual Non Cumulative Preference Shares
  1. Under Pradhan Mantri Jan Dhan Yojana which feature was introduced later to enable small value digital transactions? a) Micro ATM
    b) Intra operative transfers
    c) Mobile banking registration d) Rupay Debit Card mandate
  • Answer: Micro ATM
  1. In the context of lending by banks, what is ascertained through end use verification? a) Borrower’s capacity to repay
    b) Loan amount sanctioned is used for stated objectives
    c) Collateral valuation matches loan amount d) Audited financial statements are reliable
  • Answer: Loan amount sanctioned is used for stated objectives
  1. The Negotiable Instruments Act in India primarily deals with:
    a) Bad debts recovery b) Payments and settlements c) Credit information sharing d) Microfinance lending terms
  • Answer: Payments and settlements
  1. Under BASEL III guidelines, which of the following would be considered Common Equity Tier 1 capital? a) Perpetual Non Cumulative Preference Shares
    b) Innovations Perpetual Debt Instruments
    c) Revaluation Reserves d) General Reserves
  • Answer: General Reserves
  1. Priority sector lending norms are aimed towards: a) Developing agriculture allied services b) Overall economic growth drivers c) Financial inclusion
    d) Supporting small entrepreneurs
  • Answer: Financial inclusion
  1. What does SIMF stand for in banking operations?
  • Answer: Society for Inclusive and Microfinance
  1. Which among the following would boost CASA deposits for banks? a) Higher interest rates on term deposits to attract more funds
    b) Increase base rates or minimum balance requirement to discourage small savers
    c) Promotional offers and better digital product proposition to attract retail customers d) Focus lending towards corporate sector only
  • Answer: Promotional offers and better digital product proposition to attract retail customers
  1. The ICAI code of conduct is applicable to which professionals associated with the banking industry?
    a) Financial analysts
    b) Chartered accountants
    c) Company secretaries
    d) Actuaries
  • Answer: Chartered accountants
  1. Under BASEL III liquidity risk framework, LCR or Liquidity Coverage Ratio aims to ensure that banks have adequate _____
  • Answer: High quality liquid assets
  1. What is the full form of CCIL in context of banking and settlement in India? a) Central Clearing Independent Limits b) Collateralized Commodity Indian Legislature
    c) Clearing Corporation of India Ltd d) Consortium of Indian Lenders
  • Answer: Clearing Corporation of India Ltd
  1. Which among the following loan would be considered as priority sector advance by RBI? a) Textile manufacturing b) Microfinance for women entrepreneur c) Electric vehicles financing
    d) Food processing industry
  • Answer: Microfinance for women entrepreneur
  1. Under banking Ombudsman scheme, wrong debit entries, mis-selling & KYC related complaints are covered under which ground for complaint?
    a) Non adherence to fair practices code
    b) Failure to meet commitments
    c) Operational & administrative lapses d) Service related issues
  • Answer: Non adherence to fair practices code
  1. Which among the following loans would be categorized under agriculture activities under priority sector norms? a) Food and agro processing units with investments less than 10 crore b) Crop loans c) Dairy units
    d) All of the above
  • Answer: All of the above
  1. Prompt corrective action by RBI aims to ensure sound financial health of: a) Small Finance Banks
    b) Regional Rural Banks c) Private Banks d) Commercial Banks
  • Answer: Commercial Banks
  1. Under BASEL III framework, failure to meet liquidity ratios would result into:
    a) Increase in risk weights for capital adequacy ratios
    b) Higher provisioning norms c) Restrictions on dividend distribution
    d) Penalty on credit lines
  • Answer: Restrictions on dividend distribution
  1. Based on liquidity adjustment facility norms, Domestic banks in India need to maintain mandatory CRR of ___% ? a) 1% b) 3% c) 4% d) 6%
  • Answer: 3%
  1. Which of the following can be classified as innovative perpetual debt instrument? a) Redeemable Preference Shares
    b) Optionally Convertible Debentures c) Irredeemable Debentures
    d) Subordinated Debt with call option
  • Answer: Irredeemable debentures
  1. Under priority sector lending guidelines by RBI, which of the following type of loan accounts for largest share?
    a) Medium Enterprises b) Export Credit
    c) Renewable Energy
    d) Education
  • Answer: Medium Enterprises
  1. The squatters in a city represent that segment of urban population which _____.
    a) Do not build a house for personal use b) Set up house on public land
    c) Shift their houses very often from one roadside location to another d) Do not have a shelter
  • Answer: Set up house on public land
  1. What is the full form of CIBIL in credit information system of banking sector? a) Credit and Investment Bureau of India Limited
    b) Credit Information and Borrowers Information Library
    c) Customer Identity and Banking Information Limited d) Comprehensive Information Bureau of India for Lenders
  • Answer: Credit Information Bureau (India) Limited
  1. What does FDI stand for in the context of Indian banking system?
  • Answer: Foreign Direct Investment
  1. Under BASEL III, the common equity Tier 1 minimum capital requirement is _____%
  • Answer: 4.5%

IDBI Junior Assistant Manager Previous Year Question Papers and solutions pdf

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