Practice Risk Management in Banks Questions and Answers

• What is the core structural purpose and relevance of creating an Integrated Banking Ombudsman mechanism in the financial sector?
• On which of the following specific dates does the Reserve Bank - Integrated Ombudsman Scheme, 2026 officially come into force?
• The 2026 Scheme is formulated under several statutory provisions. Which of the following Acts does NOT grant statutory authority to this specific framework...
• What is the standard tenure of appointment for an RBI Ombudsman and an RBI Deputy Ombudsman?
• If a customer wants to file a complaint with the Ombudsman, which of the following is the most fundamental first step they must complete? 
• According to the definition, what does a "deficiency in service" primarily represent? 
• What is the financial limit on the dispute amount that a customer can bring before the RBI Ombudsman?
• What is the maximum compensation amount that the RBI Ombudsman can award for a direct consequential financial loss suffered by a complainant?
• Apart from direct consequential loss, the Ombudsman can award an additional compensation amount for loss of time, expenses, and mental anguish. What is the...
• Where is the primary Centralised Receipt and Processing Centre (CRPC) established by the RBI located?
• Scheduled and Non-Scheduled Primary (Urban) Co-operative Banks fall under the jurisdiction of the Scheme only if they hit which minimum deposit size thresh...
• An NBFC registered with the RBI that features a customer interface comes under the purview of this scheme if its asset size is at least:
• Which of the following specific corporate entities is structurally excluded from the applicability of the Scheme under the NBFC criteria?
• Which of the following entities is covered under the Scheme without any asset or deposit size thresholds attached to its name?
• Before a customer can file a maintainable complaint with the RBI Ombudsman, how many days must they wait for a response after giving their first-level writ...
• What is the limitation period for lodging a complaint with the RBI Ombudsman after the initial 30-day window given to the financial institution has expired...
• According to the rules of representation specified under the grounds for maintainability, who is explicitly barred from representing a complainant unless t...
• Which of the following grievances would be rejected at the outset as it represents a clear corporate structural exclusion from the Scheme?
• Which of the following types of disputes is explicitly non-maintainable under the institutional exclusion criteria?
• The Centralised Receipt and Processing Centre (CRPC) executes an initial processing phase. What is the functional scope of this step?
• What action must the Complainant take for an Award passed by the RBI Ombudsman to remain valid and legally effective?
• Suppose a customer's complaint is rejected because it is currently being formally heard and adjudicated before a state consumer disputes redressal commissi...
• If an institution fails to provide a service that it has no legal, regulatory, or contractual obligation to offer, can this failure be labeled a "deficienc...
• What structural limitation separates the power of the RBI Deputy Ombudsman from the principal RBI Ombudsman?
• A term loan asset is formally classified as a Non-Performing Asset (NPA) if the principal or interest payment remains overdue for a continuous period excee...
• For agricultural loans extended for short-duration crops, an account is classified as an NPA if the installment of principal or interest remains overdue fo...
• An asset is classified under the "Substandard" category if it has remained a Non-Performing Asset (NPA) for a period less than or equal to how many months?
• Which of the following asset categories is considered completely uncollectible and of such little value that its continuance as a bankable asset is no long...
• Special Mention Accounts (SMA) are categorized to identify early stress in loan accounts. Which sub-category denotes that the principal or interest payment...
• What type of provision is maintained by banks to show the percentage of total non-performing assets that are covered by provisions, acting as a measure of ...
• When a bank calculates its Net Non-Performing Assets (Net NPAs), which of the following variables is directly deducted from the Gross NPAs?
• The revised Prompt Corrective Action (PCA) framework is primarily a tool designed by the regulator to manage financial stability. What type of mechanism do...
• In which year was the Prompt Corrective Action (PCA) framework first introduced in India to bring structural improvements to weak banking institutions?
• Which of the following financial institutions are explicitly EXCLUDED from the scope of the revised PCA framework for commercial banks?
• Under the revised PCA framework for commercial banks, which operational metric was entirely removed as an independent trigger point or parameter for invoki...
• The revised Prompt Corrective Action (PCA) Framework for Urban Co-operative Banks (UCBs) officially replaced the older Supervisory Action Framework (SAF). ...
• Under the forward-looking ECL framework, which stage requires a bank to maintain credit loss provisions covering a 12-month horizon?
• Which asset classification under the ECL model directly corresponds to traditional credit-impaired Non-Performing Assets (NPAs)?
• What core metric represents the net percentage or economic loss a bank stands to suffer if an asset goes into default?
• What forward-looking parameter represents the statistical likelihood of a borrower defaulting on an obligation over a specific time horizon?