SBI GK Questions 2026

The systemic importance score of a bank is built from four indicators: size, interconnectedness, substitutability and complexity. Size carries the highest weight because the sheer scale of a bank's balance sheet decides how much damage its failure would do.

India applies Basel III with a stricter minimum: the capital to risk weighted assets ratio must be at least nine per cent, of which Common Equity Tier 1 must be at least 5.5 per cent and Tier 1 at least seven per cent.

The Board for Financial Supervision was constituted in November 1994 so that supervision of banks, select all-India financial institutions and non-banking financial companies would get undivided attention.

Withdrawal of PCA restrictions is considered when no parameter has breached a risk threshold across four continuous quarterly financial statements, and one of those four must be the audited annual financial statement.

The first set of mandatory actions, applied as soon as a bank crosses Risk Threshold 1, is a restriction on dividend distribution or remittance of profits, together with a requirement that the promoters, owners or the parent of a foreign bank infuse capital.

Under the revised framework the three indicators are the capital to risk weighted assets ratio or the Common Equity Tier 1 ratio for capital, the net non-performing assets ratio for asset quality, and the Tier 1 leverage ratio for leverage.

The revised framework applies to all scheduled commercial banks but expressly leaves out three categories: small finance banks, payments banks and regional rural banks.

In the 2025 list State Bank of India sits in bucket 4 and must hold an extra Common Equity Tier 1 cushion of 0.80 per cent of its risk weighted assets, over and above the normal minimum and the capital conservation buffer.

The PCA framework arranges breaches into three risk thresholds, each more serious than the last, and attaches mandatory corrective actions to each.

The 2017 framework watched capital, asset quality and profitability, with return on assets as the profitability indicator.

The Reserve Bank of India issued the D-SIB framework on 22 July 2014, setting out how banks would be picked for the sample, how their systemic importance score would be computed from size, interconnectedness, substitutability and complexity, and how much additional Common Equity Tier 1 capital each bucket would attract.

ONDC is not an application or a marketplace but a set of open protocols, in the same spirit as UPI in payments, designed so that a buyer using one application can discover and order from a seller registered on a different application.

EDI is the computer-to-computer exchange of standard business documents such as purchase orders, invoices, despatch advices and payment instructions, in an agreed format, without paper and without a person re-typing the data at the other end.

This Act is the legal foundation of electronic commerce in India: it recognised electronic records as equivalent to paper records, gave digital and later electronic signatures the status of a signature, provided for certifying authorities, and created the offences under which online fraud such as identity theft and cheating by…

On such a platform both the buyer and the seller are enterprises: a factory sources raw material, components, machinery or packaging from suppliers, and the orders are usually bulk orders with negotiated prices, credit terms and long-term supply contracts.

GeM is an online marketplace on which central and state government departments, public sector undertakings and other public bodies buy common-use goods and services from registered sellers, with the aim of making purchase faster, cheaper and transparent.

HTTPS is HTTP carried inside a protected channel: the browser and the server first exchange a digital certificate and agree on keys, after which card numbers, passwords and addresses travel as cipher text that an eavesdropper on the network cannot read.

M-commerce, or mobile commerce, is the part of electronic commerce conducted on smartphones, tablets and even feature phones over a wireless network, and the term is credited to Kevin Duffey in 1997.

NPCI, set up in 2008 as the umbrella organisation for retail payments in the country, built and runs UPI, which lets a user link several bank accounts to one mobile application and transfer money instantly using a virtual payment address, without sharing account numbers.

Here both sides of the deal are individuals and the website only provides the listing, the search and sometimes the payment and dispute machinery, earning a fee or advertising revenue rather than a trading margin.