Rapid revision
Test one fact at a time:open a card, recall the direct answer, then practise it in MCQ format.
As of February 2026, what are the maximum per-transaction limit and the maximum total balance limit allowed in a "UPI Lite" on-device wallet?
Direct Answer
Transaction Limit:₹1,000;
Wallet Balance:₹5,000.
Historical Context:Originally, the limits were ₹500 per transaction and ₹2,000 total balance.
Regulatory Update:To encourage wider adoption of small-value digital payments, the RBI enhanced these limits (announced in late 2024/2025). This allows users to pay for slightly larger daily expenses (like groceries or fuel) without entering a PIN, while keeping the risk capped at ₹5,000.
Under the "Simplified Procedure" for settling claims without a nomination, up to what amount can a Commercial Bank settle a claim without insisting on a Succession Certificate?
What is ECL (Expected Credit Loss)?
Direct Answer
ECL (Expected Credit Loss) is a forward-looking provisioning model where banks estimate potential future losses rather than waiting for a default to occur
What is Zero Liability?
Direct Answer
"Zero Liability" means the customer bears no financial loss for a fraudulent transaction
If a bank fails to reverse a failed ATM transaction within the stipulated T plus 5 days,
what is the mandatory compensation amount payable to the customer per day of delay?
When a Reporting Entity (RE) opens a new account for a customer, it must upload the KYC data to the Central KYC Records Registry (CKYCR).
What is the strict timeline for this upload?
Direct Answer
Within 10 days of the commencement of the account-based relationship.
What is DLG, also known as FLDG or First Loss Default Guarantee,?
Direct Answer
DLG, also known as FLDG or First Loss Default Guarantee, is an arrangement where a Lending Service Provider compensates the Lender for defaults
What is the Special Mention Account (SMA) framework?
Direct Answer
The Special Mention Account (SMA) framework is a preventive tool to identify incipient stress in loan accounts before they turn into NPAs (which happens at >90 days).
What are For revolving facilities like CC/OD, where there?
Direct Answer
For revolving facilities like CC/OD, where there are no fixed repayment dates for principal, the concept of "Overdue" is replaced by Out of Order
What is the current annual premium payable by a subscriber for the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) for the coverage period starting June 1, 2025?
The Reserve Bank of India (RBI), supported by Budget 2026, is rolling out the "Unified Lending Interface" (ULI).
What is the primary function of the ULI platform?
Direct Answer
To enable "Frictionless Credit" by allowing seamless, consent-based flow of digital information (like land records and satellite data) from various data providers to lenders.
What are the Fit and Proper criteria for directorships?
Direct Answer
The "Fit and Proper" criteria for directorships are violated by Wilful Default status
As per the Banking Laws (Amendment) Act, 2025,
what is the maximum number of nominees a depositor can now appoint for a single deposit account?
What is UPI Circle?
Direct Answer
"UPI Circle" is a feature designed by the National Payments Corporation of India (NPCI) to enable Delegated Payments.
When an account is classified as a "Sub-standard Asset,"
what is the general provisioning requirement on the secured portion of the outstanding balance?
Direct Answer
The general provision on the secured portion of a Sub-standard asset is 15
What is Pradhan Mantri Jan Dhan Yojana (PMJDY)?
What is Annual Percentage Rate (APR)?
What is the insurance premium rate paid to DICGC as of the financial year 2025-26, and who bears the burden of this cost?
According to Section 138 of the Negotiable Instruments Act, 1881,
what is the maximum term of imprisonment prescribed for the offence of dishonour of a cheque?
Under Section 85(1), a Paying Banker is discharged from liability if he pays an "Order Cheque" in due course, even if:
As per the Banking Laws (Amendment) Act, 2025,
what is the maximum number of nominees a depositor can now appoint for a single deposit account?
The Account Aggregator (AA) framework is designed around the principle of being "Data Blind." What does this specifically mean for the AA entity (NBFC-AA)?
Direct Answer
"Data Blind" means the AA acts as a pipe that transports data but cannot read it
According to the RBI’s "Fair Lending Practice" circular regarding Penal Charges (effective 2024 and valid in 2026), how must a Regulated Entity (RE) treat late payment penalties?
Identify the correct statement regarding the reporting of "Digital Lending" loans to Credit Information Companies (CICs).
Which type of Mortgage is created by the simple delivery of documents of title to immovable property with the intent to create security, and is valid only in notified towns?
Identify the INCORRECT statement regarding the Central Registry of Securitisation Asset Reconstruction and Security Interest of India, known as CERSAI.
Direct Answer
Registration of security interest with CERSAI is optional for mortgages created after 2020.
Identify the INCORRECT statement regarding the Liquidation Process as per the 2025 amended framework.
Direct Answer
The Liquidator has absolute independence and cannot be replaced by the Committee of Creditors once appointed.
Identify the pair that correctly matches the Scheme with its eligible entry age and premium payment mode:
Direct Answer
Only pair B is correct.
Detailed Analysis of Errors:1.
A (PMJJBY):Entry is 18–50, but it is not a one-time payment. It requires an annual renewal premium (₹436). 2.
C (APY):Atal Pension Yojana entry age is 18–40 years, not 60. 3.
D (PMJDY):While minors (10+) can open accounts, there is no premium for the OD facility itself.
Who is the regulatory authority responsible for the administration and supervision of the Atal Pension Yojana (APY)?
According to the Union Budget 2026-27,
what is the revised Fiscal Deficit target set for the financial year 2026-27, expressed as a percentage of GDP?
The Union Budget 2026-27 announced the formation of a "High-Level Committee on Banking" (HLC-B).
What is the specific mandate of this committee as stated in the budget speech?
Direct Answer
To comprehensively review the banking sector and suggest legislative changes to align it with the "Viksit Bharat" (Developed India) goals.
To support the growth of "High-Potential" MSMEs, the Budget 2026-27 announced the creation of a dedicated "SME Growth Fund."
What is the total corpus of this fund?
The Budget 2026-27 introduced the concept of "Corporate Mitras." Who are these "Corporate Mitras" and what is their primary function?
Direct Answer
A cadre of accredited para-professionals (like CA/CS/CMA) certified to help MSMEs with compliance.
A major structural reform in the Union Budget 2026-27 was the increase in the Foreign Direct Investment (FDI) limit for the Insurance Sector.
What is the new FDI cap?
What is the legal effect of adding the words "Not Negotiable" to a crossing on a cheque under Section 130 of the NI Act?
Direct Answer
The cheque remains transferable, but the transferee cannot acquire a better title than that of the transferor.