Advanced MCQs Based on RBI Guidelines (Jan–Sep 2025)
Top 10 Advanced-Level Financial Awareness MCQs (January to September 2025)
Are you preparing for the PNB Promotion Test (Scale 4 to 5) in 2025? Setting your sights on a higher banking role? These expert-curated MCQs—covering the latest RBI circulars, compliance mandates, and nuanced policy updates from January to September 2025—will sharpen your edge and boost your scores!
Why These MCQs Matter for PNB Promotion Test (Scale 4 to 5)?
With the PNB Promotion Exam now emphasizing regulatory clarity, policy nuances, and RBI’s latest directions, it’s crucial to practice the right set of questions! These MCQs are meticulously created from authentic RBI Notifications and Circulars (Jan–Sep 2025), reflecting the exact pattern banks now prefer for internal promotions.
10 Advanced MCQs: RBI Circulars, Financial Awareness, Bank Promotion 2025
-
Gold Loan LTV and Collateral Nuance
As per the RBI revised guidelines (July 11, 2025) on gold/silver collateral for agriculture & MSME loans:
What is the Loan-to-Value (LTV) ratio for loans over ₹5 lakh, and the maximum collateral-free loan amount?
A. LTV 75%; Collateral-free up to ₹2.5 lakh
B. LTV 80%; Collateral-free up to ₹2.5 lakh
C. LTV 75%; Collateral-free up to ₹2 lakh
D. LTV 85%; Collateral-free up to ₹2 lakh -
Alternative Investment Fund (AIF) Exposure Limits
Under RBI norms effective Jan 1, 2026, what is the collective cap for all regulated entities' investment in a single AIF scheme, & which investments are excluded from provisioning norms?
A. 15% of corpus; CCDs
B. 20% of corpus; CPs
C. 20% of corpus; Equity Shares, CCPS, CCDs
D. 10% of corpus; Equity only -
Project Finance Provisioning and Timeline
RBI's June 2025 directions: What is the reduced standard asset provisioning for under-construction projects, and its effective date?
A. 1.25%; Jan 1, 2026
B. 1%; Oct 1, 2025
C. 5%; Jan 1, 2026
D. 0.4%; Oct 1, 2025 -
Governance and Regulatory Review Cell (RRC)
What is the primary function of the Regulatory Review Cell (RRC) as established in Sep 2025, and its mandated review frequency?
A. Simplify KYC for low-risk customers; Annually
B. Oversee bank.in domain; Every 3 years
C. Review regulations for relevance/efficiency; Every 5–7 years
D. Implement payment board strategy; Quarterly -
PNB and Digital Compliance Framework
RBI mandated the PROVA portal & CIMS for regulated entities. What does PROVA stand for, and what must be uploaded to CIMS by June 15, 2025?
A. Regulatory Oversight/Verified Authorization; Cross-border aggregators
B. Regulatory Application, Validation and Authorization; All Digital Lending Apps (DLAs)
C. Regulatory Operations/Validation Authority; Core banking upgrades
D. Risk Oversight/Verification Assurance; All NPAs -
Compensation for Delayed Death Claims
According to RBI's 2025 draft: What compensation rate must banks pay if deposit claim delay is due to their fault?
A. Bank Rate + 2%
B. Repo Rate + 4%
C. Bank Rate + 4%
D. 7.5% simple interest -
Consolidated PSB Performance (March 2025)
What was the Gross NPA ratio and cumulative net profit for PSBs in FY25?
A. GNPA 4.21%; ₹1.55 trn
B. GNPA 2.58%; ₹1.78 trn
C. GNPA 2.58%; ₹2.01 trn
D. GNPA 3.31%; ₹1.78 trn -
Co-Lending Regulatory Requirements
For co-lending (effective Jan 1, 2026), what is the minimum loan portion each lender must retain, and max DLG cap?
A. 5% retention; 10% DLG cap
B. 10% retention; 5% DLG cap
C. 15% retention; 5% DLG cap
D. 10% retention; 10% DLG cap -
Internationalization of the Rupee
RBI proposed rupee loans for overseas borrowers from which countries?
A. Afghanistan, Pakistan, Nepal, Sri Lanka
B. Bangladesh, Bhutan, Nepal, Sri Lanka
C. Thailand, Malaysia, Indonesia, Vietnam
D. Maldives, Bhutan, Sri Lanka, Myanmar -
NBFC Upper Layer Regulation
Under the SBR framework, what is the minimum period for which an NBFC in the upper layer must comply with enhanced regulation, even if later it falls below threshold?
A. 3 years
B. 4 years
C. 5 years
D. 7 years
Answers & Detailed Explanations
- C – LTV 75%; Collateral-free up to ₹2 lakh. Source: RBI Circular, July 2025.
- C – 20% cap; Investments in Equity Shares, CCPS, and CCDs excluded from provisioning.
- B – 1% provisioning; Effective from Oct 1, 2025.
- C – All RBI regulations reviewed every 5–7 years for relevance & efficiency.
- B – Platform for Regulatory Application, Validation and Authorization; DLAs must be uploaded.
- C – Bank Rate + 4% per annum as compensation for delay.
- B – GNPA 2.58%; Net Profit ₹1.78 trillion (March 2025).
- B – 10% retention; 5% DLG cap.
- B – Bangladesh, Bhutan, Nepal, Sri Lanka targeted for rupee loans.
- C – At least 5 years in NBFC Upper Layer regulation.
Frequently Asked Questions (FAQs)
- Where can I get the latest RBI Circulars for PNB Promotion Exams?
All official RBI updates are published on www.rbi.org.in under the Notifications/Circulars section. - How do I prepare for Scale 4 and 5 promotion MCQs?
Focus on regulatory updates from the last 1 year, use mock tests, and practice MCQs based on fresh circulars, as shown above. - Are these MCQs relevant for other bank exams?
Yes! They are also useful for SBI, BoB, Union Bank, and internal promotional exams for other PSBs.
Boost Your Success in PNB Internal Promotion Exams!
Bookmark this page for easy reference. Share with colleagues, and subscribe for fresh banking MCQs and study notes every month!
All the best for your PNB Promotion Test (Scale 4 to 5) 2025!
Post a Comment