Banking Regulation and Supervision — Prelims Questions

Which of the following statements regarding the Prompt Corrective Action (PCA) framework in India is/are correct? 1. The PCA framework is applicable only to Public Sector Banks. 2. A breach in Net Non-Performing Assets (NNPA) ratio can trigger PCA. 3. Banks under PCA are restricted from dividend distribution and branch expansion. Select the correct answer using the code given below:

Which of the following is NOT a component of the CAMELS rating system used by the RBI for on-site inspection of banks?

Consider the following statements regarding the Account Aggregator (AA) framework in India: 1. It facilitates consent-based sharing of financial data between Financial Information Providers (FIPs) and Financial Information Users (FIUs). 2. Account Aggregators store the financial data of individuals for a specified period. 3. The framework is regulated by the Securities and Exchange Board of India (SEBI). Which of the statements given above is/are correct?

With reference to Scale-Based Regulation (SBR) for NBFCs, consider the following statements: 1. SBR categorizes NBFCs into four layers based on their size and systemic importance. 2. NBFCs in the 'Top Layer' are subject to a lighter regulatory framework compared to those in the 'Base Layer'. 3. The objective of SBR is to mitigate systemic risks posed by large NBFCs. Which of the statements given above is/are correct?

Which of the following measures are part of the Basel III framework implemented in India? 1. Capital Conservation Buffer (CCB) 2. Liquidity Coverage Ratio (LCR) 3. Net Stable Funding Ratio (NSFR) 4. Priority Sector Lending (PSL) targets Select the correct answer using the code given below: