Introduction
This final chapter is a mixed practice set drawing on every earlier chapter — a quick self-check before moving
to full-length mock tests. Attempt each question before reading the explanation.
Q1. Which committee's recommendations formed the basis of India's 1991 banking sector reforms?
Narasimham Committee I (1991) — see Chapter 15.
Q2. What is the minimum transaction amount required for an RTGS transfer?
₹2 lakh — RTGS is designed for high-value, real-time gross settlement (Chapter 6).
Q3. After how many days of default is a loan classified as an NPA?
More than 90 days of overdue interest or principal (Chapter 10).
Q4. Which institution regulates India's insurance sector?
IRDAI (Insurance Regulatory and Development Authority of India), headquartered in Hyderabad (Chapter 13).
Q5. What is the overall Priority Sector Lending target for domestic scheduled commercial banks?
40% of Adjusted Net Bank Credit (ANBC) (Chapter 5).
Q6. Under the "One State, One RRB" policy, how many RRBs remain in India after the May 2025 consolidation?
28 RRBs, down from 43 (Chapter 3 / Chapter 15).
Q7. Up to what amount does DICGC insure bank deposits per depositor per bank?
₹5 lakh, covering both principal and interest (Chapter 4).
Q8. Which payment system in India cannot be used for lending or credit card issuance, only deposits and remittances?
Payments Banks (Chapter 3).
Q9. Which act enables banks to recover NPAs by enforcing security interest without court intervention in most cases?
SARFAESI Act, 2002 (Chapter 9).
Q10. What is the RBI's statutory inflation target under the Monetary Policy Committee framework?
4% CPI inflation, with a +/-2% tolerance band (Chapter 2 / Chapter 14).
💡 How to Use This Practice Set: Attempt all 10 questions without checking the answers first,
then review the chapter reference for any you got wrong — revisiting the full explanation in context reinforces
the concept far better than memorising the isolated answer.
✅ Practice Focus: Timed mixed-topic recall · Identifying weak chapters based on missed
questions · Progressing to full-length Banking Awareness mock tests once this set is consistently scored well.