1. 1 In the context of RBI norms for asset reconstruction companies (ARCs) to acquire financial assets, choose the correct statement? 1. RBI has put restriction on the ARCs from buying financial assets from their sponsor firms and lenders (bank or financial institution) on a bilateral basis. 2. As per the amendment made in the Sarfaesi Act, 2002 RBI had permitted ARCs to acquire financial assets from other ARCs.

A. Only 1 B. Only 2 C. Both 1 and 2 D. Neither 1 and 2

Answer - Option C
Explanation -

RBI has put restriction on the ARCs from buying financial assets from its sponsor firms and lenders (bank or financial institution) on a bilateral basis.

Asset Reconstruction Company (India) (Arcil), which is sponsored by State Bank of India (SBI), ICICI Bank, Punjab National Bank (PNB) and IDBI Bank is likely to be affected the most.

RBI has also restricted ARCs to buy financial assets from a bank or financial institution, which is:

1. A lender to the ARC 2. A subscriber to the fund raised by the ARC for its operations 3. An entity in the group to which the ARC belongs

2. What is the limit on the aggregate exposure of a lender to all borrowers at any point of time, across all NBFC-P2P platforms ?

A. Rs. 10 lacs B. Rs. 25 lacs C. Rs. 50 lacs D. Rs. 60 lacs

Answer - Option C
Explanation - Prudential norms for NBFC-P2P

NBFC-P2P shall maintain a Leverage Ratio not exceeding 2.

The aggregate exposure of a lender to all borrowers at any point of time, across all P2P platforms, shall be subject to a cap of Rs.50,00,000/- provided that such investments of the lenders on P2P platforms are consistent with their net-worth. The lender investing more than Rs.10,00,000 across P2P platforms shall produce a certificate to P2P platforms from a practicing Chartered Accountant certifying minimum networth of Rs.50,00,000.

The aggregate loans taken by a borrower at any point of time, across all P2Ps, shall be subject to a cap of Rs.10,00,000/-.

The exposure of a single lender to the same borrower, across all P2Ps, shall not exceed Rs.50,000/-.

The maturity of the loans shall not exceed 36 months.

P2Ps shall obtain a certificate from the borrower or lender, as applicable, that the limits prescribed above are being adhered to.

3. What is the limit on the aggregate loan taken by a borrower across all NBFC-P2P platforms ?

A. Rs. 10 lacs B. Rs. 25 lacs C. Rs. 50 lacs D. Rs. 60 lacs

Answer - Option A
Explanation - Prudential norms for NBFC-P2P

NBFC-P2P shall maintain a Leverage Ratio not exceeding 2.

The aggregate exposure of a lender to all borrowers at any point of time, across all P2P platforms, shall be subject to a cap of Rs.50,00,000/- provided that such investments of the lenders on P2P platforms are consistent with their net-worth. The lender investing more than Rs.10,00,000 across P2P platforms shall produce a certificate to P2P platforms from a practicing Chartered Accountant certifying minimum networth of Rs.50,00,000.

The aggregate loans taken by a borrower at any point of time, across all P2Ps, shall be subject to a cap of Rs.10,00,000/-.

The exposure of a single lender to the same borrower, across all P2Ps, shall not exceed Rs.50,000/-.

The maturity of the loans shall not exceed 36 months.

P2Ps shall obtain a certificate from the borrower or lender, as applicable, that the limits prescribed above are being adhered to.

4. What is the maximum loan tenure on a NBFC-P2P platforms ?

A. 12 months B. 24 months C. 36 months D. 48 months

Answer - Option C
Explanation - Prudential norms for NBFC-P2P

NBFC-P2P shall maintain a Leverage Ratio not exceeding 2.

The aggregate exposure of a lender to all borrowers at any point of time, across all P2P platforms, shall be subject to a cap of Rs.50,00,000/- provided that such investments of the lenders on P2P platforms are consistent with their net-worth. The lender investing more than Rs.10,00,000 across P2P platforms shall produce a certificate to P2P platforms from a practicing Chartered Accountant certifying minimum networth of Rs.50,00,000.

The aggregate loans taken by a borrower at any point of time, across all P2Ps, shall be subject to a cap of Rs.10,00,000/-.

The exposure of a single lender to the same borrower, across all P2Ps, shall not exceed Rs.50,000/-.

The maturity of the loans shall not exceed 36 months.

P2Ps shall obtain a certificate from the borrower or lender, as applicable, that the limits prescribed above are being adhered to.

5. RBI has directed all (Urban) Co-operative Banks (UCBs) having total assets of _________ and above as on 31st March of the previous financial year to report exposures on all borrowers having aggregate exposures of ________ and more to the CRISIL?

A. Rs 300 crore, Rs 3 crore B. Rs 400 crore, Rs 4 crore C. Rs 500 crore, Rs 5 crore D. Rs 600 crore, Rs 6 crore

Answer - Option C
Explanation - The move has been taken by RBI with the aim of early detection of financial distress.

The Co-operative Banks (UCBs) having total assets of Rs 500 crore and above as on 31st March of the previous financial year shall report credit information, including classification of an account as Special Mention Account (SMA), on all borrowers having aggregate exposures of Rs 5 crore.

Special Mention Account (SMA) is an account which is exhibiting signs of incipient stress resulting in the borrower defaulting in timely servicing of her debt obligations, though the account has not yet been classified as NPA as per the extant RBI guidelines.

The RBI has created a Central Repository of Information on Large Credits (CRILC) of commercial banks, all India financial institutions and certain non-banking financial companies.

1. What is the maximum limit for the subscription of the Sovereign Gold Bond Scheme for individuals and HUFs?

A. 4 kg B. 8 kg C. 20 kg D. 1 kg

Answer - Option A
Explanation - The minimum investment limit of subscription is one gram and the maximum limit is 4 kg for individuals, HUFs and 20 kg for trusts.
2. Who is the chairman of the committee set up by RBI to review the regulatory guidelines and supervisory framework of Core Investment Companies (CIC)?

A. Rakesh Mohan B. Tapan Ray C. Nandan Nilekani D. U.K. Sinha

Answer - Option B
Explanation - Terms of Reference of the committee:

To examine the current regulatory framework for CIC and suggest changes therein.

Suggest changes to the current approach of the Reserve Bank of India towards registration of CIC.

To strengthen corporate governance and disclosure requirements for CIC.

For enhancing off-sight and on-site supervision over CIC.

The committee shall submit the report by October 31, 2019.

Core Investment Companies (CIC):

CIC is a Non-Banking Financial Company (NBFC) that is indulged in the business of acquiring shares and securities

The CIC holds not less than 90% of its net assets in the form of investment.

The investment is made in equity shares, preference shares, debentures, bonds, debt or loans in group companies.

The investments in the equity shares in group companies are not less than 60 per cent of its net assets.

3. Which of the following is not allowed to benefits of alternate composition scheme?

A. Service providers of turnover up to Rs 50 lakh B. Ice-cream manufacturers C. E-commerce players D. Traders of turnover up to Rs 1.5 crore

Answer - Option D
Explanation -

Manufacturers or traders with a taxable business turnover of up to Rs 1.5 crore are eligible for the scheme. The turnover limit is Rs 75 Lakh for the North-Eastern States.

For the service provider, the taxable business turnover is up to Rs 50 Lakh.

Under this scheme, the person can pay tax every quarter at a flat percentage of turnover, instead of paying tax at a normal rate every month.

The composition scheme applies tax rates at 1% (0.5% CGST and 0.5% SGST) on turnover for manufacturers and traders, 5 % on restaurants (not serving alcohol) and 6% for other service providers.

The scheme resists e-commerce players, businesses with tobacco and pan masala, inter-state supplies and ice-cream manufacturers to opt for the scheme.

4. What is the definition of a micro enterprise as per MSME act ?

A. Investment in plant and machinery is less than 10 lacs B. Turnover is less than 5 crore C. Has less than 10 full-time employees D. Total investment in fixed assets of business is less than 25 lacs

Answer - Option B
5. What is “Priority Sector Lending” target for Small Payment banks?

A. 75 per cent of Adjusted Net Bank Credit B. 50 per cent of Adjusted Net Bank Credit C. 25 per cent of Adjusted Net Bank Credit D. 45 per cent of Adjusted Net Bank Credit

Answer - Option A

1. What is the age-limit to be eligible as a director of a PSU bank ?

A. 35 to 67 years B. 24 to 70 years C. 30 to 67 years D. 27 to 65 years

Answer - Option A
Explanation - The Committee shall determine the 'fit and proper' status of the proposed candidates based on the broad criteria mentioned here under:

I. Age – The candidate’s age should be between 35 to 67 years as on the cut-off date fixed for submission of nominations for election.
II. Educational qualification – The candidate should at least be a graduate.
III. Experience and field of expertise – The candidate shall have special knowledge or practical experience in respect of one or more.

2. What is the maximum tenure of a PSU bank director ?

A. 5 years B. 6 years C. 9 years D. 10 years

Answer - Option B
Explanation - An elected director shall hold office for three years and shall be eligible for re-election: Provided that no such director shall hold office for a period exceeding six years, whether served continuously or intermittently.
3. RBI’s medium-term strategy framework UTKARSH 2022 has a duration of?

A. 2020-2023 B. 2019-2024 C. 2020-2022 D. 2019-2022

Answer - Option D
Explanation -

• The framework’s objective is to achieve excellence in the performance of RBI's mandates and improve regulation, supervision of the central bank and to avoid future crisis.


• The vision document is a 3-year road map to guide the RBI during the medium-term period (2019-22).

4. Out of the given options, which committee is related to the surplus transfer of reserves between RBI and the government?

A. H.R. khan committee B. Tapan Ray committee C. Bimal Jalan committee D. TN Mahoharan committee

Answer - Option C
Explanation -

• The Bimal Jalan Committee on Economic Capital Framework met on 17th July 2019 for the final time to decide on transferring of surplus reserves to the government.


• RBI had the total surplus cash reserve of Rs 9.43 lakh crore on 30th June 2018.


• According to the finance ministry, the buffer of 28 % of gross assets maintained by the RBI is well above the global norm of around 14 %.

5. What is the maximum duration of time for the completion of the resolution process for corporate, allowed under the Insolvency and Bankruptcy Code (IBC)?

A. 330 days B. 270 days C. 250 days D. 100 days

Answer - Option A
Explanation - Amendments to The Insolvency and Bankruptcy Code (IBC) was approved. This includes 330 days deadline for corporate resolution process and 7 other amendments. Currently, IBC allows a maximum of 270 days for clearing a resolution plan (180 days and extended 90 days if a majority of the creditors agree).