A loan account is classified as a Non Performing Asset when the interest or instalment remains overdue for more than:

The correct answer is C, Real Time Gross Settlement. RTGS is the system in which a transfer instruction is settled singly and immediately, rather than being held and netted off with others. Real time means the instruction is processed the moment it is received, and gross means every instruction is settled on its own without being set against any other. It is used for large value transfers, with a minimum of two lakh rupees and no upper limit fixed by the Reserve Bank of India, and it is available round the clock on all days.

Options A, B and D mix the words in ways that sound familiar but are wrong. The word scheme in A and D is the giveaway, because RTGS is a settlement system run by the Reserve Bank and not a scheme. Option B keeps the correct last word but replaces real time with rapid transfer. The contrast to remember is NEFT, which settles in half hourly batches, against RTGS, which settles instruction by instruction.

The correct answer is C, I, II and III. All three belong to the monetary policy toolkit of the Reserve Bank of India. SLR, the Statutory Liquidity Ratio, is the part of its deposits that a bank must keep with itself in cash, gold or approved securities, and raising or lowering it changes how much a bank can lend. MSS, the Market Stabilisation Scheme, allows the Reserve Bank to absorb lasting surplus liquidity by issuing special treasury bills and dated securities. The corridor is the band formed by the standing facility rates around the policy repo rate, within which the overnight call money rate is expected to move.

Options A, B and D each leave out one of the three. They test whether a candidate treats the corridor as a mere description rather than as a working instrument, and whether the Market Stabilisation Scheme is remembered at all, since it is used only when liquidity is in lasting surplus.

The correct answer is B, Moral Suasion. The tools of the Reserve Bank are divided into quantitative tools, which change the total amount of credit in the system, and qualitative or selective tools, which change the direction in which that credit flows. Moral suasion is the qualitative tool by which the Reserve Bank persuades banks through letters, meetings and advice, for example to lend less to a speculative sector, without issuing a binding order. The other qualitative tools are margin requirements, selective credit control, rationing of credit and direct action.

Option A, the bank rate, is the rate at which the Reserve Bank lends to banks without collateral, and changing it changes the cost of credit for everyone, so it is quantitative. Option C, open market operations, adds or removes money by buying or selling government securities, which is also quantitative. Option D, the cash reserve ratio, fixes how much of its deposits a bank must keep with the Reserve Bank, again a quantitative measure.

The correct answer is A, to connect SWIFT with its Core Banking Solution. SWIFT is the international messaging network over which banks send payment and guarantee instructions across borders. When it is kept apart from the Core Banking Solution, a message can go out without any entry appearing in the books of the bank, and that gap was used in a large fraud that came to light in 2018. The Reserve Bank therefore directed banks to link the SWIFT terminal with the Core Banking Solution by 30 April 2018, so that every outgoing message leaves a trail in the accounts.

Options B, C and D name RTGS, NEFT and MICR. RTGS and NEFT are domestic payment systems of the Reserve Bank and already run through bank systems, while MICR is only a code printed on a cheque. None of them carries the cross border instruction that created the risk, so none was the subject of the direction.

The correct answer is B, 11. The Indian Financial System Code is an eleven character alphanumeric code that identifies a particular bank branch taking part in the electronic payment systems of the Reserve Bank of India. The first four characters are letters that name the bank, the fifth character is always the digit zero and is held in reserve for future use, and the last six characters identify the branch. Without a correct IFSC, a NEFT, RTGS or IMPS instruction cannot be routed to the right branch.

Option A, nine, is the length of the MICR code printed at the foot of a cheque, where three digits each stand for the city, the bank and the branch. Option C, thirteen, matches nothing in the Indian banking system. Option D, sixteen, is the usual number of digits on a debit or credit card. Mixing up the eleven character IFSC with the nine digit MICR is the commonest error in this question.