CAIIB Practice Questions 2026, Download Free E-book

1. Statement 1: Inflation decreases the real value of money. Statement 2: Deflation always encourages borrowing. Statement 3: RBI uses repo rate as a tool to control inflation. Which of the statements given above is/are correct?

2. Statement 1: Asset diversification reduces overall portfolio risk. Statement 2: Diversification eliminates all types of risk. Statement 3: Portfolio management includes risk-return analysis. Which of the statements given above is/are correct?

3. Statement 1: ERP systems integrate various functions such as HR, finance, and operations. Statement 2: ERP is only relevant for IT companies. Statement 3: ERP improves information flow and decision-making. Which of the statements given above is/are correct?

4. Statement 1: Branch network expansion is a strategic decision. Statement 2: Location analysis ignores customer demographics. Statement 3: Technology adoption can complement branch network growth. Which of the statements given above is/are correct?

5. Statement 1: ERP helps banks in regulatory reporting and compliance. Statement 2: ERP eliminates the need for internal audits. Statement 3: ERP can generate consolidated financial reports in real time. Which of the statements given above is/are correct?

6. Statement 1: MIS (Management Information System) provides timely and accurate information for decision-making. Statement 2: MIS focuses only on financial data, ignoring operations. Statement 3: MIS reports support strategic and operational decisions. Which of the statements given above is/are correct?

7. Statement 1: Benchmarking helps banks compare performance against peers. Statement 2: Benchmarking guarantees superior performance. Statement 3: Benchmarking identifies areas for process improvement. Which of the statements given above is/are correct?

8. Statement 1: Interest rate swaps allow banks to manage interest rate risk. Statement 2: Currency swaps expose banks to foreign exchange risk. Statement 3: Derivatives eliminate all financial risk. Which of the statements given above is/are correct?

9. Statement 1: Business continuity planning ensures operations continue during disruptions. Statement 2: Disaster recovery plan focuses on IT systems only. Statement 3: Both BCP and DRP are part of risk management framework. Which of the statements given above is/are correct?

10. Statement 1: Strategic risk arises from inappropriate business decisions or poor implementation. Statement 2: Reputational risk is unrelated to customer trust. Statement 3: Strategic planning helps mitigate strategic risk. Which of the statements given above is/are correct?

1. Escrow reduces fraud risk because:

2. Mr. Sharma deposits ₹1.8 lakh, friend deposits ₹50,000 same day. Violation under Section 269ST?

3. Business owner accepts ₹25,000 cash loan from relative, deposits ₹9 lakh. Section violation?

4. Bank securitises loans ₹100 crore, original maturity 18 months. Minimum retention requirement (MRR)?

5. Housing finance company securitises ₹500 crore bullet loans. MRR stake?

6. Non-retail loans, borrower-wise MRR. Overdue status determined?

7. Retail loan pool, MRR maintained consolidated. NPAs classified based on:

8. Diamond exporter turnover ₹2.5 crore, wants DDA. Eligibility?

9. Exporter holds 5 DDAs, wants 6th with another bank. Regulation?

10. NRI remittance credited to Nostro account, bank applies rate to credit INR:

1. Arrange the following steps of decision-making in the correct order: I. Identifying the problem II. Evaluating alternatives III. Implementing the decision IV. Defining objectives V. Monitoring outcomes

2. Statement 1: SWOT analysis helps in identifying internal strengths and weaknesses of an organization. Statement 2: PESTLE analysis focuses on external environmental factors affecting the organization. Statement 3: Balanced Scorecard only evaluates financial performance. Which of the statements given above is/are correct?

3. Which of the following correctly differentiates between a leader and a manager?

4. Which of the following is NOT an advantage of delegation?

5. Statement I: Informal groups often influence employee behavior even without formal authority. Statement II: Informal groups are deliberately structured by management to achieve goals.

6. Statement 1: MBO requires setting measurable goals jointly by manager and employee. Statement 2: BARS must be customized for each job to anchor behaviors accurately. Statement 3: 360-degree feedback only gathers information from peers. Which of the statements given above is/are correct?

7. Match the management function with its description: (A) Planning (B) Organizing (C) Leading (D) Controlling — (1) Assigning resources and responsibilities (2) Setting objectives and deciding on actions (3) Motivating and guiding employees (4) Comparing performance with standards

8. A bank anticipates regulatory changes and prepares action plans for different scenarios. This is an example of:

9. Statement 1: Technology upgrades can improve operational efficiency. Statement 2: Competition has no effect on a bank’s market share. Statement 3: Fluctuating interest rates affect loan profitability. Which of the statements given above is/are correct?

10. What is the likely outcome if cross-functional teams lack clear communication protocols?

1. Submission of returns by banks under Banking Regulation Act: 1. Monthly return of assets and liabilities 2. Annual accounts within 3 months 3. Quarterly return of assets in India 4. RBI may call for half-yearly investment info

2. Banks must maintain records for which transactions under KYC/AML/CFT norms?

3. Pledge under Section 172 of Indian Contract Act is defined as:

4. Regarding amalgamation and moratorium under Banking Regulation and Companies Act: 1. Central Govt can order amalgamation after consulting RBI 2. RBI can apply for moratorium 3. Moratorium ≤ 12 months 4. No payments to depositors unless directed

5. Parties who can legally pledge goods under Indian law:

6. Penalties under RBI Act: 1. False or omitted statement → imprisonment ≤ 3 years + fine 2. Failure to produce documents → fine ≤ ₹1 lakh per offence 3. Continuing offences → fine ₹5,000/day 4. Court cognizance without complaint unnecessary

7. Shareholding pattern in RRBs as per RBI/NABARD:

8. If an MSE fails to comply with MSEFC order, XYZ Plastics Pvt. Ltd. should:

9. Stakeholders in RRBs include: 1. RBI 2. Central Government 3. State Government 4. Sponsor Bank

10. Under Section 35 of Banking Regulation Act, RBI may issue directions if: