UPSC Prelims PYQs – NPA, Bad-Loans, BASEL (Economy)

1. With reference to the ‘Banks Board Bureau (BBB)’, which of the following statements are correct?

1. The Governor of RBI is the Chairman of BBB.
2. BBB recommends for the selection of heads for Public Sector Banks.
3. BBB helps the Public Sector Banks in developing strategies and capital raising plans.

Select the correct answer using the code given below:

[UPSC Civil Services Exam – 2022 Prelims]

2. What is the importance of the term “Interest Coverage Ratio” of a firm in India?

1. It helps in understanding the present risk of a firm that a bank is going to give loan to.
2. It helps in evaluating the emerging risk of a firm that a bank is going to give loan to.
3. The higher a borrowing firm’s level of Interest Coverage Ratio, the worse is its ability to service its debt.

Select the correct answer using the code given below:

[UPSC Civil Services Exam – 2020 Prelims]

3. What was the purpose of Inter-Creditor Agreement signed by Indian banks and financial institutions recently?

[UPSC Civil Services Exam – 2019 Prelims]

4. The Chairmen of public sector banks are selected by the

[UPSC Civil Services Exam – 2019 Prelims]

5. With reference to the governance of public sector banking in India, consider the following statements:

1. Capital infusion into public sector banks by the Government of India has steadily increased in the last decade.
2. To put the public sector banks in order, the merger of associate banks with the parent State Bank of India has been affected.

Which of the statements given above is/are correct?

[UPSC Civil Services Exam – 2018 Prelims]

6. Consider the following statements:

1. Capital Adequacy Ratio (CAR) is the amount that banks have to maintain in the form of their own funds to offset any loss that banks incur if the account-holders fail to repay dues.
2. CAR is decided by each individual bank.

Which of the statements given above is/are correct?

[UPSC Civil Services Exam – 2018 Prelims]

7. Which of the following statements best describes the term ‘Scheme for Sustainable Structuring of Stressed Assets (S4A)’, recently seen in the news?

[UPSC Civil Services Exam – 2017 Prelims]

8. ‘Basel III Accord’ or simply ‘Basel III’, often seen in the news, seeks to

[UPSC Civil Services Exam – 2015 Prelims]

9. Why is the offering of “teaser loans” by commercial banks a cause of economic concern?

1. The teaser loans are considered to be an aspect of sub-prime lending and banks may be exposed to the risk of defaulters in future,
2. In India, the teaser loans are mostly given to inexperienced entrepreneurs to set up manufacturing or export units.

Which of the statements given above is/are correct?

[UPSC Civil Services Exam – 2011 Prelims]