Banking and Finance Current Affairs MCQs

1.

The improved financial health of Public Sector Banks is a result of which of the following combined efforts?

A Government recapitalization and improved risk management by banks.

B Increased lending to risky sectors and reduced regulatory oversight.

C Focus on non-performing assets only, neglecting profitability.

D Reduced competition from private banks and fintech companies.

2.

Besides the reduction in NPAs, what other factor contributes to the robust financial health of Public Sector Banks?

A Decreasing deposit growth.

B Increased provisioning coverage ratio.

C Reduced profitability.

D Lower capital infusion from the government.

3.

Which key financial indicator has shown significant improvement for Public Sector Banks (PSBs) in recent times, reflecting their robust health?

A Net Interest Margin (NIM)

B Gross Non-Performing Assets (GNPAs)

C Return on Assets (RoA)

D Capital Adequacy Ratio (CAR)

4.

What is the primary reason for the significant increase in the RBI's surplus transfer in recent years?

A Increased dividend income from public sector banks.

B Higher interest earnings on foreign currency assets.

C Improved performance of RBI's own investments and asset revaluation.

D Reduced operational expenses of the RBI.

5.

Which committee's recommendations are generally followed for determining the surplus transfer from RBI to the government?

A Narasimham Committee

B Bimal Jalan Committee

C P. J. Nayak Committee

D Y. V. Reddy Committee

6.

What is the record amount of surplus that the Reserve Bank of India (RBI) has approved to be transferred to the Central Government for the fiscal year 2023-24?

A ₹1.20 lakh crore

B ₹1.50 lakh crore

C ₹1.75 lakh crore

D ₹2.10 lakh crore

Banking & Finance MCQs - 2026-05-26