Advanced MCQs: Microfinance, NBFCs & Insurance
Advanced MCQs: Microfinance, NBFCs & Insurance Companies
Boost your preparation with advanced level multiple-choice questions based on the latest guidelines, reforms, and regulatory frameworks in India.
Q1: As per RBI's 2022 guidelines, maximum household income cap for MFIs lending in rural areas is?
a) ₹1.25 lakh
b) ₹2 lakh
c) ₹3 lakh
d) ₹1 lakh
Q2: In SHG-Bank Linkage Model 2, loans are provided directly to?
a) SHG members individually
b) SHG as a group
c) NGOs
d) MFIs
Q3: In Joint Liability Groups (JLG), loan default of one member leads to?
a) Cancellation of entire group
b) Only the individual penalized
c) Joint repayment by others
d) Legal action against NGO
Q4: Peer monitoring mechanism is a key feature of which microfinance model?
a) SHG model
b) Grameen model
c) Individual lending
d) Bank-financed JLG
Q5: In SHG-Bank Linkage Program, SHGs must ideally maintain group savings for how long before availing loans?
a) 6 months
b) 12 months
c) 18 months
d) 24 months
Q6: According to RBI, minimum NOF for new NBFC registration is?
a) ₹5 crore
b) ₹2 crore
c) ₹10 crore
d) ₹1 crore
Q7: NBFC-ICC stands for?
a) Investment and Credit Company
b) Insurance and Credit Corporation
c) Institutional Credit Committee
d) Infrastructure Credit Company
Q8: Base Layer NBFCs include entities with asset size less than?
a) ₹500 crore
b) ₹100 crore
c) ₹1,000 crore
d) ₹50 crore
Q9: In Scale-Based Regulation (SBR), which layer is subject to enhanced regulatory norms similar to banks?
a) Base Layer
b) Middle Layer
c) Upper Layer
d) Top Layer
Q10: Which metric determines classification of NBFCs under different SBR layers?
a) NOF
b) Gross NPA
c) Asset size and systemic risk
d) Return on Equity
Q11: NBFCs must maintain a minimum Capital to Risk Weighted Assets Ratio (CRAR) of?
a) 12%
b) 15%
c) 10%
d) 9%
Q12: In case of merger/amalgamation of NBFCs, prior approval must be obtained from?
a) IRDAI
b) SEBI
c) RBI
d) Ministry of Finance
Q13: NBFC-MFIs are required to have how much minimum qualifying assets as microfinance loans?
a) 50%
b) 60%
c) 75%
d) 40%
Q14: Minimum capital requirement for life insurance companies in India is?
a) ₹50 crore
b) ₹100 crore
c) ₹200 crore
d) ₹500 crore
Q15: GIC Re acts as?
a) Primary insurer
b) Reinsurer
c) Insurance Web Aggregator
d) Health TPA
Q16: A treaty reinsurance arrangement implies?
a) Risk transfer case-by-case
b) Risk transfer in bulk through a contract
c) No obligation for reinsurer
d) Only catastrophic risks covered
Q17: Which organization licenses Insurance Repositories?
a) SEBI
b) RBI
c) IRDAI
d) SIDBI
Q18: Which of the following is NOT an Insurance Repository?
a) NSDL
b) CDSL
c) CAMS
d) HDFC Bank
Q19: The eIA (electronic Insurance Account) helps in?
a) Claim rejection
b) Paperless policy management
c) Issuing physical policies
d) Increase agent commission
Q20: As per IRDAI, a Web Aggregator must display comparison based on?
a) Premium only
b) Features and benefits
c) Commission percentage
d) Agent ratings
Q21: Which insurance company first digitized its entire insurance issuance in India?
a) LIC
b) ICICI Prudential
c) HDFC Life
d) SBI Life
Q22: The minimum solvency ratio prescribed by IRDAI for insurers is?
a) 100%
b) 150%
c) 200%
d) 50%
Q23: Which Act governs Reinsurance business in India?
a) Companies Act, 2013
b) Insurance Act, 1938
c) IRDA Act, 1999
d) SEBI Act, 1992
Q24: Core Investment Companies (CICs) are mainly involved in?
a) Retail banking
b) Infrastructure finance
c) Holding and investing in group companies
d) Mutual fund management
Q25: Ombudsman Scheme for NBFCs falls under which regulation?
a) Banking Ombudsman Scheme
b) Integrated Ombudsman Scheme, 2021
c) Grievance Redressal Act, 2006
d) Companies Act, 2013
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