Q1. With reference to the transition of a Small Finance Bank (SFB) into a Universal Bank in India, consider the following statements:
1. The SFB must have maintained scheduled bank status for at least five years before applying for conversion.
2. The bank should have recorded net profits in the last three consecutive financial years.
3. Gross Non-Performing Assets (GNPA) must be less than 3% and Net Non-Performing Assets (NNPA) less than 1% in each of the last two financial years.
4. No new promoters can be added during the process of transition to a universal bank.
Which of the statements given above are correct?
(a) 1 and 3 only
(b) 2 and 4 only
(c) 1, 3 and 4 only
(d) 1, 2, 3 and 4
Explanation:
- Statement 1: Correct. Scheduled status for a minimum of five years is mandatory.
- Statement 2: Incorrect. The requirement is net profits in the last two financial years, not three.
- Statement 3: Correct. GNPA ≤ 3% and NNPA ≤ 1% over the last two financial years is necessary.
- Statement 4: Correct. No addition of new promoters or change in promoters is allowed during transition.
Thus, the correct statements are 1, 3, and 4.
Answer: (c) 1, 3 and 4 only
Q2. Which of the following correctly distinguish a Universal Bank from a Small Finance Bank (SFB)?
1. A Universal Bank can undertake both commercial and investment banking, whereas an SFB is primarily focused on deposit mobilisation and lending to priority sectors.
2. Universal Banks require a minimum paid-up capital of ₹500 crore, while SFBs require ₹200 crore.
3. Only large corporate houses can set up Universal Banks, while resident individuals with experience in banking and finance can establish SFBs.
4. While both are governed under the Banking Regulation Act, 1949, Universal Banks are also subject to additional norms relating to investment banking under SEBI.
How many of the above statements are correct?
(a) Only one
(b) Only two
(c) Only three
(d) All four
Explanation
- ✔️ Statement 1: Correct. Universal Banks have broader operations, including commercial and investment banking; SFBs are meant for financial inclusion with a focus on small borrowers and depositors.
- ✔️ Statement 2: Correct. Universal Banks (on-tap licences since 2016) require ₹500 crore, while SFBs require ₹200 crore.
- ❌ Statement 3: Incorrect. Universal Banks are not exclusively reserved for corporate houses; individuals/professionals may also apply, though stricter conditions apply.
- ❌ Statement 4: Incorrect. Universal Banks are governed under the Banking Regulation Act, 1949; their investment banking arm, if any, is separately regulated by SEBI—but the universal banking licence itself does not bring additional SEBI obligations.
Hence, only two statements (1 and 2) are correct.
Answer: (b) Only two
Q3. With reference to the Landlocked Developing Countries (LLDCs) and the Awaza Programme of Action (APoA), consider the following statements:
1. The Awaza Programme of Action (2024–2034) was adopted at the Third UN Conference on LLDCs held in Turkmenistan.
2. The highest number of LLDCs are located in Africa, while South America has the least.
3. Awaza, the venue of LLDC3, is situated on the eastern coast of the Caspian Sea.
4. In Europe, both North Macedonia and the Republic of Moldova are classified as LLDCs.
Which of the statements given above are correct?
(a) 1 and 2 only
(b) 1, 2 and 3 only
(c) 2, 3 and 4 only
(d) 1, 2, 3 and 4
Explanation
- ✔️ Statement 1: Correct. The Awaza Programme of Action (2024–2034) was adopted at the Third UN Conference on LLDCs (LLDC3) in Turkmenistan.
- ✔️ Statement 2: Correct. Africa has the largest number of LLDCs (16), South America the least (2).
- ✔️ Statement 3: Correct. Awaza is a Caspian Sea resort town in Turkmenistan, located on the eastern coast of the Caspian Sea.
- ✔️ Statement 4: Correct. Europe has exactly two LLDCs—North Macedonia and Moldova.
Thus, all four statements are correct.
Answer: (d) 1, 2, 3 and 4
Q4. With reference to Tuvalu, consider the following statements:
1. Tuvalu, formerly called the Gilbert Islands, lies in the South Pacific Ocean roughly midway between Hawaii and Australia.
2. Under the 2023 Falepili Union Treaty, Australia has committed to accept 280 Tuvaluan citizens annually as permanent residents.
3. Nanumea, the northernmost atoll of Tuvalu, is composed of five islands.
4. Tuvalu is the least populous country in the world, with a population of about 11,000.
Which of the above statements is/are correct?
(a) 2 and 3 only
(b) 1, 2 and 4 only
(c) 2, 3 and 4 only
(d) 1, 3 and 4 only
Explanation
- ❌ Statement 1: Incorrect. Tuvalu was formerly known as the Ellice Islands, not the Gilbert Islands. The Gilbert Islands today are part of Kiribati. Hence, this statement is factually wrong.
- ✔️ Statement 2: Correct. The 2023 Falepili Union Treaty between Tuvalu and Australia indeed provides for climate-induced migration. Under this treaty, 280 Tuvaluans per year will gain the right to live in Australia with permanent residency status.
- ✔️ Statement 3: Correct. Nanumea is the northernmost atoll of Tuvalu. It consists of five islands (a true atoll structure). Hence, this is factually correct.
- ❌ Statement 4: Incorrect. Tuvalu has a population of around 10,600–11,000, but it is the second-least populous country in the world (after Vatican City), not the least populous.
Correct Answer: (a) 2 and 3 only
Q5. With reference to India and the South Caucasus region, consider the following statements:
1. Azerbaijan falls on the International North–South Transport Corridor route, connecting India with Russia through Central Asia.
2. Armenia is the only country in the South Caucasus region with which India has a Friendship and Cooperation Treaty. This treaty was signed in 1995.
3. The Armenia–Azerbaijan conflict is mainly over Nagorno-Karabakh, a mountainous region located inside Azerbaijan.
4. Georgia, unlike Armenia and Azerbaijan, does not share a border with the Caspian Sea.
Which of the statements given above are correct?
(a) 1, 2 and 3 only
(b) 1 and 2 only
(c) 2, 3 and 4 only
(d) All four
Explanation
- ✔️ Statement 1 — True. Azerbaijan is a part of the International North–South Transport Corridor (INSTC), connecting India with Russia through Central Asia.
- ✔️ Statement 2 — True. India signed a Treaty of Friendship and Cooperation with Armenia in 1995, and Armenia remains the only South Caucasus country with such a treaty.
- ✔️ Statement 3 — True. The conflict between Armenia and Azerbaijan is over Nagorno-Karabakh, a mountainous enclave within Azerbaijan.
- ✔️ Statement 4 — True. Of the three South Caucasus states, only Azerbaijan and Armenia share borders with the Caspian Sea. Georgia lies entirely westward and does not touch the Caspian Sea. This makes the statement correct, but many aspirants may hesitate because geography of this subregion is not commonly memorized.
Answer: (d) All four
Q6. Which of the following statements about the Hindustan Republican Association (HRA), the Hindustan Socialist Republican Association (HSRA) and the Kakori incident are correct?
1. HRA was formed in Kanpur in 1924.
2. The Kakori incident occurred on 9 August 1925 near Lucknow and led to the hanging of Bismil, Ashfaqullah Khan, Roshan Singh and Rajendra Lahiri.
3. HSRA was formed in Feroz Shah Kotla, Delhi in 1928 with leaders like Bhagat Singh and Azad.
4. HRA aimed at a Federal Republic, while HSRA advocated monarchy.
Codes:
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1, 2 and 3 only
(d) All four
Explanation
- ✔️ 1: Correct. HRA was founded in Kanpur in 1924.
- ✔️ 2: Correct. Kakori train robbery (1925) near Lucknow; Bismil, Ashfaqullah, Roshan Singh, Lahiri were executed.
- ✔️ 3: Correct. HSRA formed at Feroz Shah Kotla, Delhi in 1928 by Bhagat Singh, Azad and others.
- ❌ 4: Incorrect. HSRA sought a Socialist Republic, not monarchy.
Answer: (c) 1, 2 and 3 only