Banking Awareness Questions with Answers: 20 Solved Questions for Bank Exams

Banking Awareness Questions with Answers: Quick Answer

This set has 20 original Banking Awareness questions with full answers and explanations, written for the General/Economy and Banking Awareness sections of the bank Mains exams. Banking Awareness is not a memory test of random facts. It is a test of how Indian banking actually works: who sets interest rates and how, what protects your deposits, where banks are forced to lend, and what changed in the last few months. Every question below is original, written for this page, and every answer is dated, so you can tell whether the fact is a stable rule or a moving number to re-check before the exam.

The weight of this section is serious, and it is the same across the big exams. In SBI PO Mains, General/Economy and Banking Awareness is 60 questions for 60 marks in 45 minutes. In IBPS PO Mains, General Awareness is 50 questions for 60 marks in 35 minutes. In IBPS RRB Mains (Officer Scale I and Office Assistant), General Awareness is 40 questions for 40 marks in 15 minutes — the fastest section in any bank exam, about 22 seconds a question, which means there is no time to work anything out and every mark comes from instant recall. In SBI Clerk and IBPS Clerk Mains, General/Financial Awareness is 40 to 50 questions for 50 marks in 20 to 35 minutes, depending on the notification. Banking questions make up a large share of each of these sections, and they are the cheapest marks in the paper: a question you have seen the fact for takes five seconds, and a question you have not takes a guess.

Key takeaway (verified 6 November 2026): RBI Governor Sanjay Malhotra (26th, since 11 December 2024 — not Shaktikanta Das) · Repo 5.50% · SDF 5.25% · MSF/Bank Rate 5.75% · CRR 3.00% · SLR 18.00% (all from the MPC review of 7 October 2026) · DICGC cover ₹5 lakh per depositor per bank · Priority sector lending 40% of ANBC for domestic banks (75% for RRBs) · PMJDY 59.09 crore accounts with ₹3,16,514 crore deposits (19 August 2026) · Loan account becomes an NPA after 90 days overdue.

This note also folds in the RBI functions and roles material — there is no separate RBI functions note, so everything about what the RBI does, how it is organised, and who runs it as of November 2026 is in the section below. Read that section first, then attempt the questions, then read every explanation — each one states the rule, the number, its date, and the trap around it.

What This Set Covers

The answer key at the bottom spreads across all five options — A 4, B 4, C 4, D 4, E 4 — so no option dominates, and no option repeats more than once in a row. If your own mock answers cluster on one letter, that is a signal to re-check, not a pattern to trust.

How to Use This Set

Give yourself 20 minutes for the 20 questions, which is roughly the pace the Clerk Mains demands and slower than the RRB Mains pace, so it is a fair practice speed. Do not look up anything mid-set. Mark every question you guessed, and after the timer, rework the guessed ones before reading the explanations. A question you got right by guessing is still a gap. Finally, re-attempt the set after a week. If a current-affairs number has moved since 6 November 2026 — the repo rate is the one most likely to move, with the next MPC meeting on 2–4 December 2026 — update it from the RBI website before trusting your memory.

The RBI in One Page: Functions, Roles and Current Leadership

The Reserve Bank of India is the centre of almost every Banking Awareness question, so this section is the foundation for the whole set. The RBI was established on 1 April 1935 under the Reserve Bank of India Act, 1934, and was nationalised on 1 January 1949. Its headquarters is in Mumbai, and it began as a shareholders' bank before nationalisation made it fully owned by the Government of India. Its first Governor was Sir Osborne Smith, and its first Indian Governor was C. D. Deshmukh. The RBI is not a commercial bank: it does not accept deposits from the general public or lend to individuals, and that single fact answers a surprising number of exam questions.

Its functions fall into seven groups. First, it is the monetary authority: it sets the repo rate through the Monetary Policy Committee and uses tools like the cash reserve ratio and the statutory liquidity ratio to control how much money flows through the economy. Second, it is the sole authority for issuing currency notes in India, except for the ₹1 note and coins, which are issued by the Ministry of Finance — a favourite trap, because the ₹1 note carries the Finance Secretary's signature, not the Governor's. Third, it is the banker to the Government, managing the Centre's and the States' accounts and their borrowing. Fourth, it is the banker to banks and the lender of last resort, holding banks' cash reserves and lending to them when no one else will. Fifth, it is the regulator and supervisor of banks, non-banking financial companies and payment systems, licensing banks and inspecting them. Sixth, it is the manager of foreign exchange reserves and the custodian of the country's external value of the rupee. Seventh, it has a developmental role: financial inclusion, priority sector lending, and the promotion of payment systems such as UPI are all driven by the RBI.

The leadership changed recently, and this is the most commonly tested current fact in the whole section. Sanjay Malhotra is the 26th Governor of the RBI, in office since 11 December 2024. He is a 1990-batch IAS officer of the Rajasthan cadre who was Revenue Secretary before his appointment, and he succeeded Shaktikanta Das, the 25th Governor, whose tenure ran from December 2018 to 10 December 2024. Some older books and websites still name Das as Governor. They are out of date, and any question that asks for the current Governor expects Malhotra. The Governor chairs the Monetary Policy Committee and the Central Board of Directors, and is appointed by the Government of India for a term of three years. As of 6 November 2026, the four Deputy Governors are Swaminathan Janakiraman (in office since 26 June 2023, reappointed from 26 June 2026), Dr Poonam Gupta (since 2 May 2025), Shirish Chandra Murmu (since 9 October 2025) and Rohit Jain (since 4 May 2026), according to the RBI's own list. Two names that appeared on older lists no longer belong there: M. Rajeshwar Rao's term ended in October 2025 and T. Rabi Sankar's ended in May 2026.

The policy rates are the numbers you must know cold, and they changed on 7 October 2026, when the MPC raised the repo rate for the first time since February 2023. The table below is the position as of that review, and it is the position this whole set uses.

Two relationships do the work of a dozen memorised facts: the SDF sits 25 basis points below the repo rate, the MSF 25 above it, and the Bank Rate always equals the MSF — so knowing the repo rate gives you all three. The MPC itself has six members: the Governor as chairperson, the Deputy Governor in charge of monetary policy, one officer of the RBI nominated by the Central Board, and three external members appointed by the Government of India. It must meet at least four times a year, decides by majority with the Governor holding a casting vote, and works to the inflation target set by the Government — 4% CPI inflation with a tolerance band of 2% to 6%. In the October 2026 review the MPC projected CPI inflation of 5.2% and real GDP growth of 7.1% for FY27, which is why it moved to calibrated tightening.

RBI and Monetary Policy: Questions 1–6

Q1. Who is the Governor of the Reserve Bank of India as of November 2026?

A. Shaktikanta Das B. Sanjay Malhotra C. Urjit Patel D. Raghuram G. Rajan E. Duvvuri Subbarao

Answer: B

Explanation: Sanjay Malhotra is the 26th Governor of the RBI, in office since 11 December 2024. He is a 1990-batch IAS officer of the Rajasthan cadre who was serving as Revenue Secretary in the Ministry of Finance before his appointment, and he succeeded Shaktikanta Das, the 25th Governor, whose tenure ran from December 2018 to 10 December 2024. As Governor he chairs the Monetary Policy Committee and the Central Board of Directors, and he is appointed by the Government of India for a three-year term. Option A is the trap this question is built around: Das was Governor for six years and still appears in older books and on some websites, but he left office in December 2024. Options C, D and E are former Governors — Patel (2016–2018), Rajan (2013–2016) and Subbarao (2008–2013) — and examiners regularly mix one current name with three former ones, so learn the handover date, not just the name.

Q2. What is the policy repo rate of the RBI as of 7 October 2026?

A. 5.25% B. 5.00% C. 6.00% D. 5.50% E. 5.75%

Answer: D

Explanation: The repo rate is 5.50% as of 7 October 2026. At its 63rd meeting, held from 5 to 7 October 2026 under Governor Sanjay Malhotra, the Monetary Policy Committee voted unanimously to raise the policy repo rate under the liquidity adjustment facility by 25 basis points, from 5.25% to 5.50%. This was the first repo rate hike since February 2023, and the MPC also changed its stance from neutral to calibrated tightening, signalling that rate cuts were off the table for the near term. Option A (5.25%) was the rate before the hike, so it is the answer for any question dated before 7 October 2026 and the wrong answer for any question dated after it — always check the date on a repo rate question. Option E (5.75%) is the MSF rate and the Bank Rate, not the repo rate. The repo rate is the rate at which the RBI lends short-term funds to banks against government securities, and it is the benchmark for most floating-rate loans in India, so a change here moves home and business loan rates.

Q3. After the monetary policy review of 7 October 2026, what are the Standing Deposit Facility (SDF) rate and the Marginal Standing Facility (MSF) rate?

A. SDF 5.25% and MSF 5.75% B. SDF 5.50% and MSF 5.75% C. SDF 5.00% and MSF 5.50% D. SDF 5.25% and MSF 5.50% E. SDF 5.75% and MSF 6.00%

Answer: A

Explanation: As of 7 October 2026, the SDF rate is 5.25% and the MSF rate is 5.75%. When the MPC raised the repo rate to 5.50%, the SDF moved to 5.25% and the MSF and the Bank Rate moved to 5.75%, because the three rates are locked together: the SDF is always 25 basis points below the repo rate and the MSF is always 25 basis points above it. The SDF is the rate at which banks park surplus funds with the RBI overnight without offering collateral, and it replaced the reverse repo rate as the floor of the interest rate corridor in 2022. The MSF is the rate at which banks borrow overnight from the RBI against government securities when they have run out of cheaper options, and it is the ceiling of the corridor. The trick in the exam is to remember the corridor, not three separate numbers: know the repo rate and you can derive the other two. The Bank Rate is always equal to the MSF rate, so it is 5.75% too.

Q4. Which of the following correctly describes the composition of the Monetary Policy Committee (MPC)?

A. Nine members, all of them officers of the RBI B. Three members, all appointed by the Government of India C. The Governor alone decides the repo rate, with the Deputy Governors advising D. Twelve members, six from the RBI and six external economists E. Six members — the Governor as chairperson, the Deputy Governor in charge of monetary policy, one RBI officer nominated by the Central Board, and three external members appointed by the Government

Answer: E

Explanation: The MPC has six members: the Governor as chairperson, the Deputy Governor in charge of monetary policy, one officer of the RBI nominated by the Central Board, and three external members appointed by the Government of India. It was constituted under Section 45ZB of the RBI Act, 1934, and it must meet at least four times a year. Decisions are taken by majority vote, and the Governor has a casting vote if the votes are tied. At the October 2026 meeting, for example, the rate hike itself was unanimous, but the change of stance to calibrated tightening was decided 4–2, with Dr Nagesh Kumar and Prof Ram Singh preferring to stay neutral — which shows the external members genuinely vote. The MPC works to the inflation target notified by the Government of India: CPI inflation of 4%, with a tolerance band of 2% to 6%. If inflation stays outside that band for three consecutive quarters, the RBI must write to the Government explaining why and what it will do about it. Options A and D invent larger committees, option B confuses the MPC with a purely government body, and option C describes how things worked before the MPC was created in 2016, when the Governor alone fixed the repo rate.

Q5. Which of the following is NOT a function of the Reserve Bank of India?

A. Acting as banker to the Government of India B. Acting as lender of last resort to banks C. Accepting deposits from the general public like a commercial bank D. Issuing currency notes in India E. Regulating and supervising banks and payment systems

Answer: C

Explanation: The RBI does not accept deposits from the general public or lend to individuals — it is not a commercial bank. That is the single most important distinction in this topic, and it is why option C is the correct answer to a "NOT a function" question. The other four options are all genuine RBI functions. The RBI is the banker to the Government, managing the accounts and borrowing of the Centre and the States (option A). It is the lender of last resort, lending to banks when no one else will (option B). It is the sole authority for issuing currency notes, except for the ₹1 note and coins, which are issued by the Ministry of Finance (option D). And it licenses, regulates and inspects banks, NBFCs and payment systems (option E). The RBI also manages India's foreign exchange reserves and runs the Government's public debt. When a question asks what the RBI does, run through this list; when it asks what the RBI does not do, look for the commercial-banking activity — deposits from the public, personal loans, or a branch network for retail customers.

Q6. What are the Cash Reserve Ratio (CRR) and the Statutory Liquidity Ratio (SLR) as of October 2026?

A. CRR 3.00% and SLR 18.00% B. CRR 4.50% and SLR 18.00% C. CRR 3.00% and SLR 21.50% D. CRR 4.00% and SLR 19.50% E. CRR 2.50% and SLR 18.00%

Answer: A

Explanation: As of the October 2026 policy review, the CRR is 3.00% and the SLR is 18.00%. The CRR is the share of a bank's deposits that it must park as cash with the RBI, and the RBI pays no interest on it, which is why a CRR cut puts money directly into banks' hands for lending. The SLR is the share of deposits a bank must hold in cash, gold, or approved government securities, and unlike CRR money, SLR holdings do earn a return because they are mostly government bonds. Both are fixed by the RBI, and neither changed at the 7 October 2026 review — only the repo rate, SDF, MSF and Bank Rate moved. Option B (4.50%) is an old CRR level from before the cuts of 2025, and option C (21.50%) is an old SLR level from several years ago, so both are traps built from real historical numbers. Remember the pair as 3 and 18, and remember that CRR is cash with the RBI while SLR is securities with the bank itself.

Banking Structure and Regulators: Questions 7–10

Q7. Which of the following statements about Small Finance Banks (SFBs) is correct?

A. SFBs cannot accept deposits from the public B. SFBs lend only to large corporates and infrastructure projects C. SFBs do not need a licence from the RBI to operate D. SFBs accept deposits and lend mainly to unserved and underserved sections, such as small businesses, micro industries and small farmers E. SFBs are the same as payments banks, with the same rules

Answer: D

Explanation: Small Finance Banks accept deposits and lend mainly to unserved and underserved sections of the population — small business units, micro and small industries, small and marginal farmers, and unorganised sector entities. They were created on the recommendation of the Nachiket Mor Committee to deepen financial inclusion, and they must follow priority sector lending rules with a higher overall target than ordinary commercial banks. Option A is wrong because taking deposits is central to what an SFB does; it is payments banks that cannot lend (option E's confusion). Option B describes the opposite of their mandate: their loan book is deliberately small-ticket and local. Option C is wrong because every bank in India needs an RBI licence under the Banking Regulation Act, 1949. The contrast to remember for the exam is simple: SFBs can both take deposits and lend, while payments banks can take deposits but cannot lend at all.

Q8. A loan account is classified as a Non-Performing Asset (NPA) when interest or principal remains overdue for how long?

A. 30 days B. 90 days C. 180 days D. One year E. 60 days

Answer: B

Explanation: A loan becomes an NPA when interest or the instalment of principal remains overdue for 90 days. This 90-day norm has applied to banks in India since 2004, and it is one of the most frequently asked single numbers in Banking Awareness. Once an account is an NPA, the bank must stop recognising interest income on it and start setting aside provisions. NPAs are then classified by age: sub-standard (NPA for up to 12 months), doubtful (sub-standard for more than 12 months), and loss assets (where the loss has been identified but not written off). Options A and E (30 and 60 days) describe the early stages of the RBI's special mention account framework — SMA-0 is 1–30 days overdue and SMA-1 is 31–60 days — which flags stress before it becomes an NPA. Option C (180 days) was the old NPA norm before 2004, and option D (one year) is the threshold for moving from sub-standard to doubtful, not for becoming an NPA in the first place.

Q9. Which of the following statements about the history of the RBI is correct?

A. The RBI was established in 1935 and nationalised in 1947 B. The RBI was established on 1 April 1935 under the RBI Act, 1934, and nationalised on 1 January 1949 C. The RBI was established in 1934 and nationalised in 1950 D. The RBI was established in 1947 and nationalised in 1949 E. The RBI was established in 1951 under the Banking Regulation Act

Answer: E

Explanation: The RBI was established on 1 April 1935 under the Reserve Bank of India Act, 1934, and it was nationalised on 1 January 1949. It began operations as a shareholders' bank, with private shareholders, and nationalisation transferred full ownership to the Government of India. Its headquarters has always been in Mumbai, its first Governor was Sir Osborne Smith (1935–1937), and its first Indian Governor was C. D. Deshmukh (1943–1949). The wrong options each mix one right date with one wrong one: 1934 is the year of the Act, not the year operations began; 1947 is Independence, not nationalisation; and 1950 is the year the Banking Regulation Act was still a year away (it came in 1949, and was originally called the Banking Companies Act). The pair to memorise is 1935 and 1949, and the Act that matters is the RBI Act of 1934.

Q10. Which of the following is true of the Payments Regulatory Board (PRB)?

A. It is a twelve-member body set up in 2024 to replace the RBI B. It is a five-member board chaired by the Finance Minister C. It is a six-member board constituted by the RBI in September 2025, chaired by the RBI Governor, replacing the Board for Regulation and Supervision of Payment and Settlement Systems (BPSS) D. It regulates the stock market and commodity exchanges E. It was set up under the SEBI Act to license stock brokers

Answer: C

Explanation: In September 2025 the RBI constituted a six-member Payments Regulatory Board (PRB) to oversee payment systems in the country, replacing the earlier five-member Board for Regulation and Supervision of Payment and Settlement Systems (BPSS). The PRB is chaired by the RBI Governor and includes a Deputy Governor and the Executive Director overseeing payment and settlement systems among its members. Its job is the regulation and supervision of payment systems — UPI, NEFT, RTGS, card networks and the rest — under the Payment and Settlement Systems Act, 2007. Option B describes the old BPSS, which had five members, and option D confuses the PRB with SEBI, which regulates securities markets. The exam point is the change itself: BPSS is out, PRB is in, the number went from five members to six, and the chair is the RBI Governor.

Deposits, Loans and DICGC: Questions 11–13

Q11. What is the maximum deposit insurance cover provided by the Deposit Insurance and Credit Guarantee Corporation (DICGC)?

A. ₹1 lakh per account B. ₹10 lakh per depositor C. ₹5 lakh per branch of a bank D. ₹5 lakh per depositor per bank, covering principal and interest together E. ₹5 lakh per account

Answer: D

Explanation: DICGC insures deposits up to ₹5 lakh per depositor per bank, with principal and interest counted together. The limit was raised from ₹1 lakh to ₹5 lakh in February 2020, and it has stayed at ₹5 lakh since then, as of 6 November 2026. The words "per depositor per bank" do the work: all your savings, current, fixed and recurring deposits in the same bank, in the same name and capacity, are added together and share one ₹5 lakh limit — so options C and E, which multiply the cover by branches or by accounts, are both wrong. Deposits in two different banks are insured separately, so ₹5 lakh in each of two banks is fully covered. DICGC is a wholly owned subsidiary of the RBI, set up under the DICGC Act, 1961, and the cover is automatic — the depositor pays nothing and the bank pays the premium. It covers deposits with commercial banks, small finance banks, payments banks and most co-operative banks, but not deposits with NBFCs, and not mutual funds, shares or bonds. Under the 2021 amendment to the DICGC Act, insured depositors must be paid within 90 days when a bank is placed under moratorium. One item to treat with care: news reports in June 2026 said the Finance Ministry had proposed raising the cover to ₹7.5 lakh, but as of 6 November 2026 that proposal had not been approved or notified, and DICGC's own guide still states ₹5 lakh — so answer ₹5 lakh in the exam unless an official announcement says otherwise.

Q12. What has the RBI proposed about deposit insurance premiums, to apply from FY27?

A. A risk-based premium model, under which financially sounder banks pay lower premiums and weaker banks pay higher premiums B. The flat premium has already been abolished and replaced by a per-depositor charge C. Depositors will now pay the insurance premium directly to DICGC D. The deposit insurance cover has been raised to ₹7.5 lakh from FY27 E. DICGC has been merged into SEBI and no longer insures deposits

Answer: A

Explanation: The RBI has proposed a risk-based model for deposit insurance premiums, to be introduced from FY27, under which financially sound banks with strong capital adequacy and governance pay lower premiums and weaker banks pay more. The logic is straightforward: insurance should cost more where the risk of failure is higher, and the current system charges banks a flat rate regardless of their health. This is a proposal, not a rule in force, so the exam-correct way to describe it is "RBI has proposed" — and any option that states it as already implemented is wrong. Option D is the trap to watch: the ₹7.5 lakh cover figure comes from a separate, unconfirmed news report about a proposed increase in the cover itself, and as of 6 November 2026 the cover remains ₹5 lakh. Option C reverses who pays — the bank pays the premium, never the depositor. The underlying facts that make this question work are that DICGC has operated the deposit insurance scheme since 1962 under the DICGC Act, 1961, and that the cover is ₹5 lakh per depositor per bank, including principal and interest.

Q13. What is the minimum total Capital to Risk-Weighted Assets Ratio (CRAR) that the RBI requires Indian banks to maintain under Basel III?

A. 9% B. 11.5% C. 8% D. 15% E. 12.5%

Answer: B

Explanation: Indian banks must maintain a minimum total CRAR of 11.5%, which is 9% minimum capital plus a 2.5% capital conservation buffer (CCB). The 9% minimum is itself higher than the 8% floor in the international Basel III framework, because the RBI has always set a tougher standard for Indian banks, and the 2.5% buffer sits on top of it. The buffer exists so that banks build up capital in good times and can draw it down in bad times without breaching the minimum. The related numbers to keep straight are that Tier 1 capital must be at least 7% of risk-weighted assets (6% Common Equity Tier 1 plus 1.5% Additional Tier 1) and Common Equity Tier 1 alone must be at least 5.5%. Option A (9%) is the minimum without the buffer, which is the classic half-right answer, and option C (8%) is the international Basel floor, not the Indian requirement. Basel III was adopted in India in phases from 2013, and the capital rules sit alongside the liquidity rules — the Liquidity Coverage Ratio and the Net Stable Funding Ratio — that the RBI also enforces.

Priority Sector and Financial Inclusion: Questions 14–17

Q14. What is the overall priority sector lending (PSL) target for domestic commercial banks?

A. 25% of Adjusted Net Bank Credit (ANBC) B. 32% of ANBC C. 40% of ANBC or the Credit Equivalent of Off-Balance Sheet Exposure (CEOBSE), whichever is higher D. 50% of ANBC E. 75% of ANBC

Answer: C

Explanation: Domestic commercial banks (excluding RRBs and small finance banks) and foreign banks with 20 or more branches must direct 40% of their Adjusted Net Bank Credit (ANBC) or the Credit Equivalent of Off-Balance Sheet Exposure (CEOBSE), whichever is higher, to priority sectors. Priority sector lending is the RBI's way of forcing credit towards parts of the economy that would otherwise be starved of it: agriculture, micro, small and medium enterprises, export credit, education, housing, social infrastructure, renewable energy and weaker sections. The target is measured on the ANBC or CEOBSE as on the corresponding date of the previous year, and achievement is monitored quarterly. Option E (75%) is the RRB target, not the commercial bank target, and option A (25%) is far below any current target. If a bank falls short, it must invest the shortfall in the Rural Infrastructure Development Fund (RIDF) maintained with NABARD or in similar funds, so the target has real teeth.

Q15. What is the overall priority sector lending target for Regional Rural Banks (RRBs)?

A. 40% of ANBC B. 50% of ANBC C. 60% of ANBC D. 65% of ANBC E. 75% of ANBC

Answer: E

Explanation: Regional Rural Banks must direct 75% of their ANBC to priority sectors, far above the 40% required of domestic commercial banks. The higher target reflects what RRBs are for: they were created to serve rural areas, and their lending is expected to be overwhelmingly agricultural and rural. Within that 75%, the sub-targets are the same as for other banks — 18% of ANBC to agriculture and 7.5% to micro enterprises — but the weaker sections sub-target is higher, at 15% of ANBC against 12% for commercial banks. Small finance banks sit in between, at 60% overall. The pattern to remember is a ladder: commercial banks 40%, small finance banks 60%, RRBs 75%. Examiners test this ladder by offering each rung as an option for a different bank type, so always read which bank the question names before picking a number.

Q16. Within the agriculture target, what is the sub-target for lending to Small and Marginal Farmers (SMFs)?

A. 10% of ANBC B. 14% of ANBC C. 18% of ANBC D. 7.5% of ANBC E. 12% of ANBC

Answer: A

Explanation: The sub-target for lending to Small and Marginal Farmers is 10% of ANBC. The agriculture target has three layers, and the exam tests whether you can separate them. The overall agriculture target is 18% of ANBC (option C). Within that, at least 14% of ANBC must go to non-corporate farmers — individual farmers, partnerships, self-help groups and joint liability groups (option B). And within that 14%, at least 10% of ANBC must go to small and marginal farmers specifically. Small farmers are those with landholdings above 1 hectare and up to 2 hectares, and marginal farmers are those with up to 1 hectare. The structure exists because, left alone, banks would lend to large agri-businesses and meet the headline 18% while small farmers got nothing. A bank cannot use a surplus in one sub-target to cover a shortfall in another: each sub-target must be met on its own, and shortfalls go to the RIDF with NABARD. The revised PSL guidelines that set this structure took effect on 1 April 2025, and the Master Direction was updated again in September 2026.

Q17. Which of the following is correct about the Pradhan Mantri Jan Dhan Yojana (PMJDY) as of August 2026?

A. 45 crore accounts with deposits of ₹2.1 lakh crore B. 59.09 crore accounts with deposits of ₹2,94,702 crore C. 59.09 crore accounts with deposits of ₹3,16,514 crore, an average deposit of ₹5,356 per account, and 41.29 crore RuPay cards issued D. 57.78 crore accounts with deposits of ₹3,16,514 crore E. 62 crore accounts with deposits of ₹4 lakh crore

Answer: C

Explanation: As of 19 August 2026, PMJDY had 59.09 crore accounts with total deposits of ₹3,16,514 crore (about ₹3.17 lakh crore), an average deposit of ₹5,356 per account, and 41.29 crore RuPay cards issued to account holders. PMJDY was launched on 28 August 2014 as the National Mission for Financial Inclusion, and it completed 12 years in August 2026. Around 56% of the accounts are held by women and about 78% were opened in rural and semi-urban areas. The wrong options are built from real figures with wrong pairings, which is exactly how the exam traps you: option B pairs the correct account count with the deposit figure from 25 February 2026 (₹2,94,702 crore), and option D pairs the February account count (57.78 crore) with the August deposit figure. The lesson is to learn a figure with its date attached — 59.09 crore and ₹3,16,514 crore belong together, and both belong to 19 August 2026. The scheme's own features are also asked: a basic savings account with no minimum balance, a RuPay debit card, an overdraft facility of up to ₹10,000 for eligible account holders, and accident insurance cover of ₹2 lakh on RuPay cards issued to accounts opened after August 2018.

Digital Banking and Payments: Questions 18–19

Q18. What is the per-transaction limit for tax payments through UPI?

A. ₹1 lakh B. ₹2 lakh C. ₹10 lakh D. ₹5 lakh E. ₹50,000

Answer: D

Explanation: The per-transaction limit for tax payments through UPI is ₹5 lakh. The RBI raised it from ₹1 lakh to ₹5 lakh per transaction, and the same ₹5 lakh limit applies to other high-value categories such as hospital and educational payments. The general UPI limit for person-to-person and most merchant payments remains ₹1 lakh per day, so option A is the answer for ordinary UPI, not for tax payments. UPI — the Unified Payments Interface — was launched by the National Payments Corporation of India (NPCI) in 2016, and it settles payments instantly, 24 hours a day, between bank accounts using a virtual payment address or QR code. The exam's favourite UPI facts are the limits by category, so learn them as a set: ₹1 lakh for general payments, ₹5 lakh for tax, hospital and education payments, and ₹2 lakh for capital market and insurance payments. NPCI itself is a not-for-profit company set up by the RBI and the Indian Banks' Association, and it also operates RuPay, IMPS, NACH and the Bharat Bill Payment System.

Q19. Which of the following statements about NEFT, RTGS and IMPS is correct?

A. NEFT settles each payment instantly in real time B. RTGS is meant for high-value payments, settles in real time on a gross basis, has a minimum of ₹2 lakh and no maximum limit C. IMPS works only on bank working days D. NEFT has a minimum transaction amount of ₹2 lakh E. RTGS settles payments in batches at fixed times of the day

Answer: B

Explanation: RTGS — Real Time Gross Settlement — is the system for high-value payments: each transaction is settled individually and immediately (real time, gross), the minimum is ₹2 lakh, and there is no maximum limit. That combination — ₹2 lakh minimum, no maximum, individual settlement — is what distinguishes RTGS from the other two systems, and options D and E each hand one of its features to the wrong system. NEFT (National Electronic Funds Transfer) has no minimum or maximum amount and settles in half-hourly batches on a deferred net basis, 24 hours a day, 7 days a week since December 2019 — so option A, which calls it instant, is wrong. IMPS (Immediate Payment Service) is instant and works 24×7 including Sundays and bank holidays, so option C is wrong too. The memory hook is in the names: "Real Time" is RTGS, "Immediate" is IMPS, and NEFT is the batch system. IMPS transactions are generally capped at ₹5 lakh per transaction, and NEFT is the system most used for ordinary retail transfers precisely because it has no floor.

Recent Banking Developments: Question 20

Q20. Which of the following correctly describes the RBI's monetary policy decision of 7 October 2026?

A. The repo rate was cut to 5.25%, the first cut since 2023 B. The repo rate was left unchanged at 5.25% and the stance stayed neutral C. The stance was changed to neutral after a rate hike D. The MPC voted 4–2 in favour of the rate hike E. The repo rate was raised by 25 basis points to 5.50% — the first hike since February 2023 — the stance changed to calibrated tightening, and the hike itself was unanimous

Answer: E

Explanation: On 7 October 2026, the MPC unanimously raised the repo rate by 25 basis points to 5.50%, its first hike since February 2023, and changed its stance from neutral to calibrated tightening. The 63rd MPC meeting ran from 5 to 7 October 2026 under Governor Sanjay Malhotra. All six members voted for the hike, so option D is wrong: the 4–2 vote was on the change of stance, with Dr Nagesh Kumar and Prof Ram Singh preferring to retain a neutral stance. The MPC raised its FY27 CPI inflation forecast to 5.2% and its real GDP growth forecast to 7.1%, citing upside risks to inflation from supply-chain and shipping risks, elevated global crude oil prices and imported inflation from a weaker rupee. The next MPC meeting is scheduled for 2–4 December 2026. This is the most exam-relevant banking news of late 2026, and it is the question most likely to appear in the next round of Mains papers — learn the date, the direction, the size, the stance, and which vote was unanimous and which was 4–2.

Answer Key

1. B
2. D
3. A
4. E
5. C
6. A
7. D
8. B
9. E
10. C
11. D
12. A
13. B
14. C
15. E
16. A
17. C
18. D
19. B
20. E

Key spread: A 4, B 4, C 4, D 4, E 4. No option repeats consecutively anywhere in the key, so the longest run is 1.

Common Mistakes

The first mistake is answering with the previous Governor. Shaktikanta Das held office for six years, from December 2018 to December 2024, and his name is still in many books and on some websites. The current Governor is Sanjay Malhotra, in office since 11 December 2024, and every question that asks for the Governor "as of" 2025 or 2026 expects Malhotra. The second mistake is confusing the repo rate with the Bank Rate. The repo rate is 5.50% as of 7 October 2026 and the Bank Rate is 5.75%; they differ by exactly 25 basis points, and the Bank Rate is always equal to the MSF rate, so if you remember one you can derive the other. The third mistake is treating DICGC cover as per account or per branch. It is ₹5 lakh per depositor per bank, with all accounts in the same bank added together, and the limit covers principal and interest combined. The fourth mistake is mixing up the PSL ladder: 40% for domestic commercial banks, 60% for small finance banks and 75% for RRBs, with the agriculture sub-target of 18% and the small and marginal farmers sub-target of 10% sitting inside the 40%. The fifth mistake is pairing a PMJDY figure with the wrong date. The account count grows every month, so 57.78 crore (February 2026) and 59.09 crore (August 2026) are both real numbers, and only the one dated to the question's date is correct. The sixth mistake is answering NEFT questions as if it were RTGS: NEFT is batch settlement with no minimum, RTGS is real-time settlement with a ₹2 lakh minimum, and IMPS is instant and works on holidays.

Memory Tricks

Malhotra means the man in charge now. Repeat "Malhotra took over in December 2024" and the Das trap stops working: any question naming Das is either about the past or out of date. The corridor is 25 up and 25 down. From the repo rate of 5.50%, go 25 basis points down for the SDF (5.25%) and 25 up for the MSF (5.75%), and the Bank Rate simply copies the MSF. CRR 3, SLR 18. Three letters in CRR, three per cent; SLR is six times the CRR, and 18 is the number to remember. DICGC is five-five-five: ₹5 lakh, per depositor, per bank — and since February 2020. The three fives (five lakh, five in 2020, and the 90-day payout is roughly three months) are harder to confuse than a bare number. The PSL ladder is 40–60–75. Commercial banks 40, small finance banks 60, RRBs 75 — the more rural the bank, the higher the target. Jan Dhan is 59 and 3.17. As of August 2026, 59.09 crore accounts and ₹3.17 lakh crore in deposits, and the scheme turned 12 in August 2026, so 59, 3.17 and 12 travel together. RTGS is two and no top. ₹2 lakh minimum, no maximum, real time, gross — and NEFT is the one with no minimum at all.

Frequently Asked Questions

Who is the current Governor of the RBI?

Sanjay Malhotra, the 26th Governor, in office since 11 December 2024. He succeeded Shaktikanta Das, whose tenure ended on 10 December 2024. He is a 1990-batch IAS officer of the Rajasthan cadre and was Revenue Secretary before his appointment.

What is the repo rate as of November 2026?

5.50%, set by the MPC on 7 October 2026, when it raised the rate by 25 basis points from 5.25%. The SDF is 5.25%, the MSF and Bank Rate are 5.75%, the CRR is 3.00% and the SLR is 18.00%. The next MPC meeting is 2–4 December 2026, so re-check before the exam.

How much of my bank deposit is insured?

Up to ₹5 lakh per depositor per bank, covering principal and interest together, through DICGC, a wholly owned subsidiary of the RBI. All your accounts in the same bank count towards the one limit, while deposits in different banks are insured separately. The limit has been ₹5 lakh since February 2020.

What is the priority sector lending target for banks?

Domestic commercial banks must lend 40% of ANBC to priority sectors, with sub-targets of 18% for agriculture (including 10% to small and marginal farmers), 7.5% for micro enterprises and 12% for weaker sections. RRBs must lend 75% and small finance banks 60%.

What is the difference between NEFT, RTGS and IMPS?

NEFT settles in half-hourly batches with no minimum amount; RTGS settles each high-value payment individually in real time, with a ₹2 lakh minimum and no maximum; IMPS is instant and works 24×7 including holidays. All three run round the clock.

How many questions of Banking Awareness come in the bank Mains exams?

SBI PO Mains has 60 General/Economy and Banking Awareness questions for 60 marks in 45 minutes; IBPS PO Mains has 50 for 60 marks in 35 minutes; IBPS RRB Mains has 40 for 40 marks in 15 minutes; and SBI and IBPS Clerk Mains have 40 to 50 General/Financial Awareness questions for 50 marks.

Is the DICGC cover being raised to ₹7.5 lakh?

Not as of 6 November 2026. News reports in June 2026 said the Finance Ministry had proposed raising the cover from ₹5 lakh to ₹7.5 lakh, but no approval or notification had been confirmed, and DICGC's own guide still states ₹5 lakh. Answer ₹5 lakh unless an official announcement says otherwise.

Practice Next

Work the concept notes first, then the timed mocks, so the facts in this set turn into instant recall. Start with Banking Awareness for Bank Exams, the hub note for the whole topic, then Banking Terms A to Z for the vocabulary that appears in options, and NEFT, RTGS, IMPS and UPI Difference to fix the payment systems in detail. For the schemes and the law behind them, read Financial Inclusion Schemes in India and Important Banking Acts in India, and for the institutions, All India Financial Institutions List and Important Committees Related to Banking. For the numbers that surround the questions, use Banks Headquarters and Taglines 2026, Bank Merger List 2026, Basel Norms 1, 2 and 3 Difference, and for the compliance angle, KYC Norms in Banking. Then test yourself under time: IBPS and SBI PO Banking Awareness Mock Test 01, IBPS and SBI PO RBI and Monetary Policy Mock Test 01, IBPS PO Mains Banking Awareness Mock Test 01 and IBPS and SBI Clerk Banking Awareness Mock Test 01.

Sources: Reserve Bank of India, Monetary Policy Statement 2026–27, Resolution of the Monetary Policy Committee, 5–7 October 2026 (rbi.org.in); Reserve Bank of India, Deputy Governors list (rbi.org.in); Reserve Bank of India, Master Direction — Priority Sector Lending (PSL) — Targets and Classification, updated September 2026; Deposit Insurance and Credit Guarantee Corporation, A Guide to Deposit Insurance (dicgc.org.in); Press Information Bureau, PMJDY 12-year release, 27 August 2026, figures as of 19 August 2026; Department of Financial Services / Ministry of Finance, PMJDY progress data; NSE Macro Review, 7 October 2026. All rates and figures as of 6 November 2026.