Indian Economy·MCQ Practice

Banking Sector Reforms — MCQ Practice

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Version 1Updated 8 Mar 2026

Interactive MCQ Practice

Test your knowledge. Click “Solve” to reveal options, select your answer, then check the result. 15 questions available.

Q1easy

Which of the following committees is associated with the first generation of banking sector reforms in India post-1991?

Q2medium

Which of the following statements regarding Payment Banks (PBs) in India is/are correct? 1. PBs can accept demand deposits up to ₹2 lakh per customer. 2. PBs are allowed to undertake lending activities to small businesses. 3. PBs can issue both debit and credit cards. Select the correct answer using the code given below:

Q3medium

Consider the following statements regarding Basel III norms: 1. They introduced new liquidity standards like Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR). 2. They mandated a higher minimum Common Equity Tier 1 (CET1) capital requirement compared to Basel II. 3. The Counter-cyclical Capital Buffer (CCyB) is a key component aimed at preventing excessive credit growth. Which of the statements given above are correct?

Q4medium

The National Asset Reconstruction Company Limited (NARCL), often referred to as India's 'bad bank', functions with which of the following primary objectives? 1. To acquire stressed assets (NPAs) from commercial banks. 2. To provide fresh lending to MSMEs and small farmers. 3. To offer 100% cash payment to banks for acquired NPAs. Select the correct answer using the code given below:

Q5easy

Which of the following Acts empowers banks and financial institutions to recover their dues without court intervention by enforcing security interests in cases of default?

Q6easy

The concept of 'Prompt Corrective Action' (PCA) framework for banks in India is primarily aimed at:

Q7medium

Which of the following is NOT a direct outcome of bank nationalization in India?

Q8hard

Consider the following statements regarding the Insolvency and Bankruptcy Code (IBC), 2016: 1. It provides a time-bound process for resolution of insolvency. 2. It applies only to corporate entities and not to individuals. 3. It prioritizes the claims of operational creditors over financial creditors in all cases. Which of the statements given above is/are correct?

Q9medium

Which of the following is a key feature of the RBI's recent guidelines on Climate Risk and Sustainable Finance for banks?

Q10easy

The term 'Core Banking Solution (CBS)' in the context of Indian banking refers to:

Q11medium

Which of the following is a key characteristic of Small Finance Banks (SFBs) in India?

Q12medium

The term 'haircut' in the context of NARCL's functioning refers to:

Q13easy

Which of the following is a primary objective of the recent mega-mergers of Public Sector Banks (PSBs) in India?

Q14medium

The 'Scale Based Regulation (SBR)' framework recently introduced by the RBI is applicable to which of the following financial entities?

Q15easy

Which constitutional entry grants the Parliament exclusive power to legislate on 'Banking' in India?

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