Quantitative Aptitude Questions (Data Sufficiency) – Practice Questions for Mains Exam.

 Quantitative Aptitude (Data Sufficiency) – Exams covered:

• Banking (SBI PO Prelims, SBI Clerk Mains, RRB PO Prelims, RRB Clerk Prelims, IBPS PO Prelims/Mains, NABARD, RBI Grade B)
• SSC (CGL, CHSL)
• Railway (RRB JE, NTPC)
• Insurance (LIC Clerk Prelims, LIC HFL/Assistant, NIACL)

1. Quantity I: A retailer buys a radio for Rs. 560. His overhead expenses are Rs. 75. If he sells the radio for Rs.720, his profit percentage

Quantity II: If a pen marked at Rs.85, sold for Rs.70, the rate of discount

1. Quantity I ≤ Quantity II
2. Quantity I ≥ Quantity II
3. Quantity I > Quantity II
4. Quantity I < Quantity II
5. No relation

 

2. Quantity I: A sum of money at compound interest amounts to thrice itself in 3 years. In how many years will be 9 times itself?

Quantity II:  The sum of money 2 times itself in 5 years. The same amount and the same rate of interest, the 8 times will be in?

1. Quantity I ≤ Quantity II
2. Quantity I ≥ Quantity II
3. Quantity I > Quantity II
4. Quantity I < Quantity II
5. No relation

 

3. Quantity I: If 24x²-6x-9=0, what is the value x?

Quantity II: If 24y²-22y-35=0, what is the value of y?

1. Quantity I ≤ Quantity II
2. Quantity I ≥ Quantity II
3. Quantity I > Quantity II
4. Quantity I < Quantity II
5. No relation

 

4. 1>a>0>b

Quantity I: Value of  ((a+b)²-a²-b²) / ((a+b)²-(a-b)²)

Quantity II: 1/ 2(ab³+ab)

1. Quantity I ≤ Quantity II
2. Quantity I ≥ Quantity II
3. Quantity I > Quantity II
4. Quantity I < Quantity II
5. No relation

 

5. Ragu bought two articles- article A at Rs. X and article B at Rs. X+50. She sold article A at 20% profit and article B at 10% loss, and earned Rs. 35 as profit on the whole deal.

Quantity I:  Profit earned by Ragu on selling article A in?

Quantity II: Loss incurred (in Rs.) when an article which costs Rs. 480 is sold at 20% loss

1. Quantity I ≤ Quantity II
2. Quantity I ≥ Quantity II
3. Quantity I > Quantity II
4. Quantity I < Quantity II
5. No relation

 

6. Quantity I: The diagonal of the square is 16. The area of the square is,

Quantity II: The perimeter of the square is 64 cm. Then the area of the square is,

1. Quantity I ≤ Quantity II
2. Quantity I ≥ Quantity II
3. Quantity I > Quantity II
4. Quantity I < Quantity II
5. No relation

 

7. A box contains 4 Red balls, 2 white balls, 6 orange balls and 8 black balls.

Quantity I: If two balls are drawn at random the probability that both balls are either Black or White.

Quantity II: If four balls are drawn at random, the probability that all are of different colours.

1. Quantity I ≤ Quantity II
2. Quantity I ≥ Quantity II
3. Quantity I > Quantity II
4. Quantity I < Quantity II
5. No relation

 

8. The cost prices of two items P and Q are the same. The shopkeeper decided to mark the price 40% above the cost prices of each item. A discount of 25% was given on item P and a discount of 20% was given on item Q. The total profit earned on both the items was Rs. 34.

Quantity I: Total cost price of items P and Q together.

Quantity II: The cost price of any item which was sold at 25% profit and the profit earned on it was Rs. 50.

1. Quantity I ≤ Quantity II
2. Quantity I ≥ Quantity II
3. Quantity I > Quantity II
4. Quantity I < Quantity II
5. No relation

 

9. Quantity I: 120 m long train can crosses a pole in 15 sec. The speed of the train is,

Quantity II: 150 m long train can crosses a platform of length 400m in 7/12 min. The speed of the train is,

1. Quantity I ≤ Quantity II
2. Quantity I ≥ Quantity II
3. Quantity I > Quantity II
4. Quantity I < Quantity II
5. No relation

 

10. Quantity I: 4 years ago, the average age of A, B, C and D was 42 years. With E joining them now, the average age of all the 5 is 41 years. The age of E is?

Quantity II:   The average age of 8 persons increased by 2 years, When 2 of them whose ages are 20 and 24 years, are replaced by 2 girls. The average age of the girls is?

1. Quantity I ≤ Quantity II
2. Quantity I ≥ Quantity II
3. Quantity I > Quantity II
4. Quantity I < Quantity II
5. No relation

Daily Current Affairs January 15th to 17th 2025

 

CURRENT AFFAIRS : BANKING & FINANCE

India to reduce stakes in 5 public sector banks, including UCO   

• India is considering reducing its ownership in 5 state-run banks, including UCO Bank, Central Bank of India, Indian Overseas Bank, Bank of Maharashtra, and Punjab and Sind Bank, through stake sales or allowing the banks to sell shares to large investors.

Key Highlights :

• Minimum Public Holding Norms: The goal is to bring down the government’s stake in these banks below 75% to meet regulatory norms.
• Methods of Stake Reduction:The Department of Investment and Public Asset Management (DIPAM) may facilitate the stake sales.
• The alternative is for the banks to sell shares to large investors, which will help them meet the required public holding norms.
• Liquidity and Lending: Allowing stake sales will improve the liquidity of these banks, which could enable them to lend more, especially as analysts suggest asset quality in the banking sector may have peaked amid slowing economic growth.
• Market Response: Shares of UCO Bank and Indian Overseas Bank surged significantly, indicating strong investor interest in state-run banks.
• Performance of State-Run Banks:Over the last 12 months, state-owned bank stocks have shown a positive performance, with a 4% increase in the Nifty gauge of state-owned banks, contrasting with a 3.6% decline in the Nifty Private Bank index.
• Valuation of Banks: The banks where the government plans to reduce its stake are trading at a price-to-book ratio between 1.43 and 3.62, compared to the State Bank of India’s price-to-book ratio of 1.44.

Bank of Baroda secures Rs 5,000 crore via 10-year infrastructure bond at 7.23% interest rate   

• Bank of Baroda (BoB) raised Rs 5,000 crore through a 10-year infrastructure bond at a coupon rate of 7.23%.
• The infrastructure bond issued by BoB was rated AAA by CRISIL and India Ratings, indicating a high credit rating.

Key Highlights :

• Issue Details:The base issue size was Rs 2,000 crore, with a green shoe option of Rs 3,000 crore, allowing for an additional issue of bonds.
• The demand for the bond was strong, with total demand amounting to Rs 14,830 crore, which was 7.5 times the base issue size.
• Full Issue Amount Retained: BoB decided to retain the full issue amount of Rs 5,000 crore despite the demand exceeding the issue size.
• IRFC’s Bond Issuance: The Indian Railway Finance Corporation (IRFC) also raised Rs 2,780 crore through 10-year bonds at a 7.25% interest rate.
• The base issue size was Rs 500 crore, and the green shoe option was Rs 2,500 crore.
• Demand for IRFC Bonds: IRFC received bids worth Rs 6,030 crore but retained Rs 2,780 crore, falling short of its target amount.
• IREDA’s Upcoming Bond Issue: The Indian Renewable Energy Development Agency (IREDA) plans to raise Rs 1,500 crore through a 10-year bond issuance later in the week, with bonds rated AAA by ICRA and India Ratings.

About BoB :

• Founded : 20 July 1908
• Headquarters : Vadodara, Gujarat, India
• MD & CEO : Debadatta Chand

Insurance Regulatory and Development Authority of India Expands Sandbox Framework to Foster Innovation   

• The Insurance Regulatory and Development Authority of India (IRDAI) has expanded the scope of its regulatory sandbox framework to encourage innovation, improve efficiency, and ease of doing business.
• Objective of Changes:These changes align with IRDAI’s move towards a modern, dynamic, and principle-based regulatory framework.
• The aim is to foster innovation, improve governance, ensure data security, and drive sustainable growth while upholding policyholder protection.

Daily Current Affairs December 12th 2024

 

CURRENT AFFAIRS : BANKING & FINANCE

All India Bank Employees’ Association proposes a 3-year ban on account openings for customers who assault bank branch staff

• The All India Bank Employees’ Association (AIBEA) has urged the Indian Banks’ Association (IBA) to blacklist customers who attack or abuse bank staff, closing their accounts and preventing them from opening new accounts for at least 3 years.
• AIBEA expressed concern over recent incidents where bank staff were physically assaulted and verbally abused by customers.
• They emphasized that staff are working to earn a living, not to be victims of such attacks.
• The attacks include both physical assaults and instances of abusive language directed at bank staff, including female employees.

Daily Current Affairs November 22nd 2024

 CURRENT AFFAIRS: BANKING & FINANCE

Private Consumption Resumes as Key Driver of Domestic Demand: Reserve Bank of India  

• As per the Reserve Bank of India’s (RBI) article ,the slowdown in the second quarter of FY 2024-25 has been overcome, with private consumption once again driving domestic demand.
• Festival-related consumption and a recovering agriculture sector are contributing to the economy’s resilience.

Key Highlights :

• Inflation Concern:The article emphasizes the need to reduce inflation to allow India to reach its growth potential.
• In October 2024, the Consumer Price Index (CPI) surged to a 14-month high of 6.21%, higher than 5.5% in September.
• Core inflation is also rising, along with a surge in food prices, including edible oils and processed foods, which affects household services and wages.
• Rural India and E-Commerce:Rural India is emerging as a key market for e-commerce, driven by increased kharif output and positive expectations for rabi production.
• E-commerce companies are targeting rural areas, especially with festival season sales.
• Retail Sector Performance:Retailers are witnessing a pickup in sales growth after the second quarter, with significant demand during festivals like Diwali.
• Premiumisation is visible, with luxury items, such as premium two-wheelers and luxury cars, gaining traction.
• Urban Growth:The urban population is expected to increase significantly, with half of India’s population projected to live in cities by 2025, further boosting urban demand.

Daily Current Affairs November 20th 2024

 

CURRENT AFFAIRS : BANKING & FINANCE

Reserve Bank of India to Launch Cloud Services in 2025, Aiming to Challenge Global Firms’ Dominance     

• The Reserve Bank of India (RBI) plans to launch a pilot programme for cloud services in 2025 to offer local cloud data storage for financial firms at affordable rates.

Key Highlights :

• Competitors:The initiative will challenge global cloud giants like Amazon Web Services, Microsoft Azure, Google Cloud, and IBM Cloud in India’s growing cloud services market.
• Market Insights:India’s cloud services market was valued at $8.3 billion in 2023 and is projected to grow to 24$.2 billion by 2028.
• Currently, the market is dominated by foreign firms.
• Target Audience:The service aims to cater to smaller banking and financial services firms unable to afford existing cloud solutions.
• Development and Funding:The project is spearheaded by the RBI’s research wing, Indian Financial Technology and Allied Services (IFTAS).
• EY has been appointed as an advisor to the project.
• Initial funding of ₹229.74 billion will come from the RBI’s Asset Development Fund.
• Financial firms may hold equity in the cloud service at later stages.
• Implementation Timeline:A small-scale implementation will begin in the coming months, with expansion in phases over the next few years.
• Focus on Localisation:The project aligns with the RBI’s push for localisation of financial data and payments infrastructure.
• Technology Collaboration:RBI will collaborate with local Indian IT firms experienced in building cloud solutions.
• Only Indian-incorporated companies or consortia are eligible to bid for the project.
• Data Centre Locations:Data centres for the project will be established in Mumbai and Hyderabad.
• Procurement:A procurement document was published on the IFTAS website in October 2024, inviting bids for the project.
• Background Announcement:RBI Governor Shaktikanta Das announced plans for a public cloud platform for the financial services industry in December 2023.

State Bank of India Raises ₹10,000 Crore Through Seventh Infrastructure Bond Issuance at 7.23% Coupon Rate for 15-Year Tenure   

• State Bank of India (SBI) has raised ₹10,000 crore at a coupon rate of 7.23 per cent through its seventh infrastructure bond issuance, payable annually for a tenor of 15 years.
• The instrument is rated AAA with stable outlook.

Key Highlights :

• Advantages of Infrastructure Bonds:Funds raised through infrastructure bonds are exempt from regulatory reserve requirements like the Statutory Liquidity Ratio (SLR) and Cash Reserve Ratio (CRR).
• Unlike deposits, where banks must maintain 5% CRR and invest approximately 18% in securities for SLR compliance, the proceeds from infrastructure bonds can be fully deployed for lending activities, providing greater flexibility.
• SBI’s $500 Million Bond Issuance:SBI has issued $500 million in Senior Unsecured Fixed Rate Notes.
• The bonds have a maturity of 5 years and a coupon rate of 5.125%, payable semi-annually.
• These bonds will be issued through SBI’s London branch on November 25 and listed on the Singapore Stock Exchange and India International Exchange, GIFT City.
• Significance of Infrastructure Bonds:Infrastructure bonds are an essential funding source for banks, particularly for large-scale infrastructure projects, offering the advantage of exempting from CRR and SLR obligations.
• Use of Proceeds:The funds raised from the infrastructure bond issuance will be used for lending purposes, supporting the bank’s lending activities without the constraints of statutory reserve requirements.

About SBI :

• Founded : 1 July 1955
• Headquarters : Mumbai, Maharashtra, India
• Chairman : Challa Sreenivasulu Setty

State Bank of India to open 300-400 branches annually in the medium term    

• The State Bank of India (SBI) plans to open 300-400 branches annually in the medium term.
• The bank aims to increase financial service penetration in India by setting up branches in residential colonies and underserved areas.
• SBI conducted an extensive micro-market survey to identify areas lacking financial services, leading to the target of 500 new branches.
• SBI may relocate branches that are not performing well to more strategic locations, ensuring access to financial services, particularly in rural and semi-urban areas.
• As of September 2024, SBI has 22,640 branches, an increase from 15,870 branches in March 2014.

SBI’s Global Market Position:

• SBI is ranked 17th in the world in terms of market capitalization.
• The bank aims to be among the top 10 global banks in market capitalization within three years.
• SBI’s market capitalization stands at ₹7.26 trillion ($86 billion), while HDFC Bank’s market capitalization is ₹13.06 trillion ($154 billion).
• SBI aims for an annual net profit of ₹1 trillion and is targeting ₹1 trillion in operating profit for the current year.
• SBI recently concluded the centennial celebration of its main branch in Mumbai.

Daily Current Affairs November 17th & 18th 2024

 CURRENT AFFAIRS : BANKING & FINANCE

Reserve Bank of India Extends Deadline for Banks and ATM Operators to Implement Cassette Swap Mechanism 

• The Reserve Bank of India (RBI) has given banks and ATM operators some wiggle room for implementing the cassette swap mechanism for cash replenishment in ATMs.
• The banking regulator has exempted cash recycler machines (CRMs) from the cassette swap requirement for cash replenishment.
• Additionally, this exemption applies when banks don’t engage outsourced agencies for cash replenishment in ATMs.

Key Highlights :

• Original Plan (2018) : In 2018, the RBI had asked banks to implement the cassette swap mechanism in a phased manner, covering at least one-third of ATMs operated by them each year so that all ATMs would achieve cassette swap by March 31, 2021.
• However, the implementation has been tardy.
• New Deadline (2025) : Now, the RBI has asked banks to expeditiously implement the roadmap for cassette swap implementation by March 31, 2025.
• Cassette Swap Mechanism : Under the cassette swap mechanism, lockable cassettes filled with banknotes are used in ATMs that are swapped at the time of cash replenishment.
• This move to exclude the cash recyclers from the cassette swap process is, in fact, a step back and needs further discussion and debate.
• Cost Considerations: Each ATM typically requires three sets of five cassettes, with the cost of each cassette ranging from ₹15,000 to ₹20,000.
• This includes cassettes for the ATM itself, in transit, and stored at the branch or cash-in-transit (CIT) company.
• Current ATM Landscape: As of August 2024, there were 2.55 lakh ATMs in India, of which 2.20 lakh were bank-owned, and 35,000 were operated by White Label ATM Operators.
• Impact of the Exemption: The exemption for CRMs and in-house operations could delay the widespread adoption of the cassette swap mechanism and may raise questions regarding its efficiency and effectiveness.

Galaxy Health Insurance launches its first insurance product, ‘Galaxy Promise’          

• Galaxy Health Insurance Company Limited has launched its first health insurance product, ‘Galaxy Promise’.
• The product targets families seeking affordable health coverage.
• The company is jointly promoted by Venu Srinivasan, Chairman Emeritus of TVS Motor Company and Sundaram-Clayton Ltd, and V Jagannathan, founder of Star Health and Allied Insurance Company Ltd.
• Galaxy Health Insurance received approval from the Insurance Regulatory and Development Authority of India (IRDAI) earlier in 2024 to commence its operations.
• ‘Galaxy Promise’ offers sum insured options ranging from ₹3 lakh to ₹1 crore.
• The product is available in multiple plans: Signature, Elite, and Premier, offering flexibility to customers.
• Managing Director and CEO of Galaxy Health Insurance : G Srinivasan

JPMorgan establishes GIFT City unit to create derivative products   

• JPMorgan Chase & Co. has set up a unit in India’s Gujarat International Finance Tec-City (GIFT City), becoming the first global bank to establish such a unit aimed at developing derivative products.
• The unit will focus on creating derivative products to be offered to clients across Asia-Pacific and Europe.
• JPMorgan plans to hire five people in the next 12 months to lead the development of derivative products in GIFT City.
• JPMorgan opened its international business unit in GIFT City in 2022, enabling the bank to provide services to its group entities outside the free trade zone, without adding liabilities to its balance sheet, as per exemptions granted by the regulator for economic zones.

About JPMorgan Chase & Co :

• Founded : December 1, 2000
• Headquarters : New York City, United States
• Chairman & CEO : Jamie Dimon

World Bank Increases Lending Capacity by 50%, Pledges $150 Billion for Green Projects and Developing Economies Over the Next Decade   

• The World Bank has increased its lending capacity by 50%, enabling it to offer a record $150 billion over the next decade.
• The World Bank’s primary focus will be on supporting developing economies through this increased capacity.
• A major portion of the funding will be directed towards green projects, supporting climate action and the achievement of the Sustainable Development Goals (SDGs).
• The World Bank currently lends $5 billion annually, with the increased capacity significantly enhancing its ability to provide financial support for climate resilience and sustainable development.
• India, one of the World Bank’s largest clients, will receive a major share of this increased funding, especially for projects related to climate resilience, rural development, energy, healthcare, and digital education.

About World Bank :

• Established : July 7, 1944
• Headquarters : Washington, D.C., United States
• President : Ajay Banga

Asian Development Bank issues first biodiversity and nature-themed bond to fund projects across Asia and the Pacific  

• The Asian Development Bank (ADB) has issued its first biodiversity and nature theme bond to finance a pool of eligible projects across Asia and the Pacific.
• The bond, valued at A$150 million (approximately US$100 million), has a 10-year maturity and was purchased by Dai-ichi Life Insurance Company of Japan. It was arranged by Credit Agricole CIB.
• The bond was issued under ADB’s Theme Bonds for Sustainable Development program, in collaboration with its Environment group.
• ADB’s theme bonds for sustainable development act as a key vehicle to mobilize private capital in support of the United Nations Sustainable Development Goals and the Kunming-Montreal Global Biodiversity Framework.
• ADB will soon launch its Environment Action Plan 2024–2030: Towards a Nature Positive Asia and the Pacific that will create a road map for its activities to tackle climate change, biodiversity loss, and pollution.

About ADB : 

• Established : 1966
• Headquarters : Manila, Philippines
• President : Masatsugu Asakawa
• Membership : 68 members, including 49 regional members (countries in Asia and the Pacific) and 19 non-regional members (countries outside the region)

IDFC FIRST Bank unveils exclusive Startup Lounge to support and empower early-stage entrepreneurs in India 

• IDFC FIRST Bank has launched a new Startup Lounge to support early-stage startups and entrepreneurs in India.
• The lounge is located in Koramangala, Bangalore.

Key Features of the Lounge:

• The FIRST Wings Startup Lounge provides mentorship, networking opportunities, and access to essential resources for entrepreneurs.
• It is equipped with state-of-the-art facilities, including meeting rooms and advanced video conferencing solutions.
• The space is designed to help entrepreneurs scale their businesses and facilitate collaboration with investors.

About IDFC FIRST Bank:

• Founded: October 2015.
• Headquarters: Mumbai, Maharashtra, India.
• MD & CEO: V. Vaidyanathan.
• IDFC FIRST Bank was formed through the merger of the banking arm of Infrastructure Development Finance Company (IDFC) and Capital First, a non-bank financial institution.

HDFC Bank and TOI Host Cyber Security Summit in New Delhi to Mark Fifth Year of Participation in International Fraud Awareness Week      

• HDFC Bank and Times of India (TOI) organized the Cyber Security Summit in New Delhi to mark the fifth year of HDFC Bank’s participation in International Fraud Awareness Week.
• Cyber frauds or cyber crimes are increasingly grabbing headlines and the need for individuals and institutions to stay vigilant has never been more pressing.
• HDFC Bank launched the ‘Stay Safe, Stay Vigil’ campaign, featuring ‘Vigil Aunty,’ a social media influencer who educates people on recognizing and avoiding common and innovative cyber frauds.
• The campaign is aimed at spreading awareness and informing the public about various types of cyber frauds to prevent financial losses.

About HDFC Bank :

• Founded : August 1994
• Headquarters : Mumbai, Maharashtra, India
• CEO : Sashidhar Jagdishan

Daily Current Affairs November 10th & 11th 2024

 

CURRENT AFFAIRS: BANKING & FINANCE

Cashfree Payments Pilots Cross Border Payments

• Months after receiving the Payment Aggregator Cross Border (PA-CB) licence, Cashfree Payments has launched a pilot program enabling overseas customers to transact with key Indian merchants using UPI and RuPay options, typically restricted to domestic use.

Key Partnerships with Major Indian Brands

Cashfree has partnered with several well-known Indian brands, including:

• Swiggy (foodtech)
• Zepto (quick commerce)
• Nature’s Basket (premium grocery)
• Nykaa (beauty and fashion)
• Bookmyshow (online ticketing)
• Redbus (travel reservations)
• Vedantu (edtech)

These partnerships aim to expand the availability of cross-border payments for UPI and RuPay users.

CEO’s Perspective on Cross-Border Transactions

• Akash Sinha, CEO of Cashfree, highlighted the convenience offered to SaaS customers handling payments of $10,000–$20,000 and above, where credit card fees may not be cost-effective.
• With Cashfree’s solution, merchants receive an account that simplifies the process, allowing money to be seamlessly collected from overseas customers.

Company Background and Recent Achievements

• Founded in 2015 by Akash Sinha and Reeju Datta, Cashfree Payments provides a full-stack digital payments solution and recently received the Prepaid Payment Instrument (PPI) licence from the Reserve Bank of India (RBI).
• This license supports purchases and fund transfers with a preloaded value.

Financial Overview (FY24)

In the financial year 2023-24 (FY24):

• Net Loss: Increased by 2.17% to INR 136 Cr from INR 133.1 Cr in FY23.
• Operating Revenue: Grew by 4.19% to INR 639.3 Cr from INR 613.6 Cr in FY23.

IRDAI Chairman Calls For 100% FDI In Insurance

• Debasish Panda, Chairman of the Insurance Regulatory and Development Authority of India (IRDAI), recently proposed allowing 100% foreign direct investment (FDI) in the insurance sector to accelerate the goal of achieving ‘insurance for all’ by 2027.

Key Highlights from Panda’s Address

• Need for Capital:
  • Panda emphasized that insurance is a capital-intensive industry, which requires substantial financial input to grow.
  • Achieving broader insurance penetration will necessitate more players and significant capital influx.
• Current FDI Cap:
  • Presently, the FDI limit stands at 74% for general, life, and health insurance sectors.
  • Panda highlighted that opening up 100% FDI would allow foreign companies to invest directly without requiring an Indian partner, which could boost competition and innovation.
• Potential Benefits of Full FDI:
  • Opening up to 100% FDI could increase the number of market players, drive competition, and ultimately enhance insurance accessibility across the country.
  • This move could also supplement domestic investments, preventing the crowding out of local capital.

Supporting India’s Long-term Vision

• Panda linked the expansion of the insurance sector to India’s larger vision of a ‘Viksit Bharat’ by 2047 (a fully developed India), indicating that universal insurance will play a pivotal role in social and economic growth.

Role of Bima Sugam Digital Platform

• The Bima Sugam digital platform, an initiative by IRDAI, aims to be a comprehensive public infrastructure to simplify policy access and management for policyholders.
• Panda noted that Bima Sugam would be instrumental in transforming the insurance sector, making policies more accessible, user-friendly, and transparent for all citizens.

RBI imposes penalty on South Indian Bank

• The Reserve Bank of India (RBI) has imposed a penalty of Rs 59.20 lakh on South Indian Bank due to non-compliance with directives on interest rate on deposits and customer service standards.

Reasons for the Penalty

• Non-Compliance in Customer Notification:
  • South Indian Bank failed to notify certain customers via SMS, e-mail, or letter regarding penal charges levied for non-maintenance of minimum/average minimum balance.
• Improper Lien Marking:
  • The bank placed liens against specific Non-Resident External (NRE) savings accounts, which was found to be against RBI’s regulatory norms.

Supervisory Inspection and Findings

• A statutory inspection was conducted by the RBI, based on the bank’s financial status as of March 31, 2023.
• Following the inspection, RBI issued a notice based on supervisory findings indicating non-compliance.
• After considering South Indian Bank’s responses and oral submissions, the RBI concluded that the bank had indeed violated regulatory directives, justifying the monetary penalty.