Liquidity Management Framework - LAF, OMO, MSS, Operation Twist · One-liners

1 Threshold 1?

CRAR ≤ Reg. min. (say 15%) but ≥ 12%; Tier-1 ≤ Reg. min. but ≥ 8%; Net NPA > 6% but ≤ 9%.

2 Threshold 2?

CRAR < 12% but ≥ 9%; Tier-1 < 8% but ≥ 5%; Net NPA > 9% but ≤ 12%.

3 Threshold 3?

CRAR < 9%; Tier-1 < 5%; Net NPA > 12%.

4 CRAR — Risk Threshold 1 / Risk Threshold 2 / Risk Threshold 3?

Risk Threshold 1: < 10.875% but ≥ 8.625%; Risk Threshold 2: < 8.625% but ≥ 7.125%; Risk Threshold 3: < 7.125%

5 CET1 ratio — Risk Threshold 1 / Risk Threshold 2 / Risk Threshold 3?

Risk Threshold 1: < 7.375% but ≥ 5.125%; Risk Threshold 2: < 5.125% but ≥ 3.625%; Risk Threshold 3: < 3.625%

6 Net NPA Ratio — Risk Threshold 1 / Risk Threshold 2 / Risk Threshold 3?

Risk Threshold 1: ≥ 6% but < 9%; Risk Threshold 2: ≥ 9% but < 12%; Risk Threshold 3: ≥ 12%

7 Tier 1 Leverage Ratio — Risk Threshold 1 / Risk Threshold 2 / Risk Threshold 3?

Risk Threshold 1: < 4% but ≥ 3.5%; Risk Threshold 2: < 3.5% but ≥ 3%; Risk Threshold 3: < 3%

8 (True/False) The Banking Regulation Act was originally enacted as the Banking Companies Act, 1949 and renamed BR Act on extension to co-operative banks in 1966?

TRUE

9 (True/False) Sec. 22 of the BR Act, 1949 governs SLR maintenance by scheduled commercial banks?

FALSE — (Sec. 22 = licensing of banks; SLR is governed by Sec. 24 of the BR Act.)

10 (True/False) FEMA, 1999 replaced FERA, 1973 with effect from 1 June 2000?

TRUE

11 (True/False) Under LERMS, 60% of forex earnings had to be surrendered to RBI at the official rate?

FALSE — (40% surrendered at official rate; 60% converted at market rate.)

12 (True/False) Sec. 5 of the FRBM Act, 2003 prohibits RBI from subscribing to the primary issue of Central Government securities w.e.f. 1 April 2006?

TRUE

13 (True/False) Ad-hoc Treasury Bills were abolished w.e.f. 1 April 1997?

TRUE

14 (True/False) The RB-Integrated Ombudsman Scheme launched on 12 November 2021 adopts a "One Nation, One Ombudsman" approach?

TRUE

15 (True/False) Credit Information Companies (CICs) came under the RB-IOS from 1 September 2022?

TRUE

16 (True/False) The Award cap under RB-IOS 2021 is ₹10 lakh?

FALSE — (Award cap is ₹20 lakh plus an additional ₹1 lakh for mental anguish.)

17 (True/False) Under the NBFC Scale-Based Regulation, the Top Layer is currently populated by the 10 largest NBFCs?

FALSE — (Top Layer is empty; Upper Layer has ~10 NBFCs.)

18 (True/False) Under the revised PCA framework for banks effective 1 January 2022, Return on Assets (RoA) is no longer a tracked indicator?

TRUE

19 (True/False) Priority Sector Lending Certificates (PSLCs) were introduced in April 2016 and are traded on RBI's e-Kuber platform?

TRUE

20 (True/False) The deposit insurance cover of ₹5 lakh per depositor per bank under DICGC came into effect on 4 February 2020?

TRUE

21 (True/False) The first wave of bank nationalisation on 19 July 1969 covered 14 banks with deposits of ≥ ₹200 crore?

FALSE — (Threshold was ₹50 crore in 1969; 1980 wave used ₹200 crore.)

22 (True/False) The IBC, 2016 prescribes a maximum CIRP timeline of 330 days including litigation?

TRUE

23 Banking Regulation Act, 1949 — Value (June 2026) / Statutory / Source Reference?

Value (June 2026): Foundational statute; Statutory / Source Reference: Sec. 22 licensing • Sec. 24 SLR • Sec. 35A directions • Sec. 35AA/AB IBC referral

24 FEMA, 1999 — Value (June 2026) / Statutory / Source Reference?

Value (June 2026): In force from 1 Jun 2000; Statutory / Source Reference: Sec. 3 dealings • Sec. 5 current a/c • Sec. 6 capital a/c • Sec. 13 penalty

25 LERMS to Managed Float — Value (June 2026) / Statutory / Source Reference?

Value (June 2026): Unified 1 Mar 1993; Statutory / Source Reference: Rangarajan Committee 1993; Article VIII accepted 19 Aug 1994

26 Policy Repo Rate — Value (June 2026) / Statutory / Source Reference?

Value (June 2026): 5.25%; Statutory / Source Reference: Unchanged for 3rd consecutive MPC; neutral stance

27 CRR — Value (June 2026) / Statutory / Source Reference?

Value (June 2026): 3.00% of NDTL; Statutory / Source Reference: Sec. 42(1) RBI Act

28 SLR — Value (June 2026) / Statutory / Source Reference?

Value (June 2026): 18.00% of NDTL; Statutory / Source Reference: Sec. 24 BR Act

29 PSL Target — SCBs — Value (June 2026) / Statutory / Source Reference?

Value (June 2026): 40% of ANBC/CEOBE; Statutory / Source Reference: Master Directions 4 Sep 2020 (updated)

30 PSL — Agriculture — Value (June 2026) / Statutory / Source Reference?

Value (June 2026): 18% of ANBC; Statutory / Source Reference: Sub-target

31 PSL — Small & Marginal Farmers — Value (June 2026) / Statutory / Source Reference?

Value (June 2026): 10% by Mar 2026; Statutory / Source Reference: Sub-target

32 PSL — Micro Enterprises — Value (June 2026) / Statutory / Source Reference?

Value (June 2026): 7.5%; Statutory / Source Reference: Sub-target

33 PSL — Weaker Sections — Value (June 2026) / Statutory / Source Reference?

Value (June 2026): 12% by Mar 2026; Statutory / Source Reference: Sub-target

34 PSL — UCBs — Value (June 2026) / Statutory / Source Reference?

Value (June 2026): 60% by Mar 2026; Statutory / Source Reference: Glide path from 40%

35 PSL — RRBs / SFBs — Value (June 2026) / Statutory / Source Reference?

Value (June 2026): 75%; Statutory / Source Reference: Statutory

36 NBFC SBR — 4 Layers — Value (June 2026) / Statutory / Source Reference?

Value (June 2026): BL ML UL TL; Statutory / Source Reference: Effective 1 Oct 2022

37 NBFC-UL — Listing Norm — Value (June 2026) / Statutory / Source Reference?

Value (June 2026): Within 3 years of UL classification; Statutory / Source Reference: RBI Circular Oct 2021

38 PCA Framework — Banks — Value (June 2026) / Statutory / Source Reference?

Value (June 2026): Effective 1 Jan 2022; Statutory / Source Reference: Indicators: CRAR + CET1 + Net NPA + Tier-1 Leverage

39 PCA — Bank Threshold 3 CRAR — Value (June 2026) / Statutory / Source Reference?

Value (June 2026): < 7.125%; Statutory / Source Reference: Most severe trigger

40 PCA — NBFC Framework — Value (June 2026) / Statutory / Source Reference?

Value (June 2026): Effective 1 Oct 2022; Statutory / Source Reference: Govt NBFCs added 1 Oct 2024

41 Central Govt WMA (H2 FY26) — Value (June 2026) / Statutory / Source Reference?

Value (June 2026): ₹50,000 crore; Statutory / Source Reference: Sec. 17(5) RBI Act

42 State Govt WMA Aggregate (FY26) — Value (June 2026) / Statutory / Source Reference?

Value (June 2026): ₹61,008 crore; Statutory / Source Reference: Revised from ₹60,118 cr

43 Deposit Insurance — DICGC — Value (June 2026) / Statutory / Source Reference?

Value (June 2026): ₹5 lakh per depositor per bank; Statutory / Source Reference: Since 4 Feb 2020; interim ₹5 lakh within 90 days since 1 Sep 2021

44 RB-IOS Award Cap — Value (June 2026) / Statutory / Source Reference?

Value (June 2026): ₹20 lakh + ₹1 lakh mental anguish; Statutory / Source Reference: Since 12 Nov 2021

45 CRPC under RB-IOS — Value (June 2026) / Statutory / Source Reference?

Value (June 2026): Chandigarh; Statutory / Source Reference: RBI

46 LRS Limit — Value (June 2026) / Statutory / Source Reference?

Value (June 2026): USD 2,50,000 per FY; Statutory / Source Reference: RBI; TCS 20% beyond ₹7 lakh (ex-edu/medical)

47 FDI in Insurance — Value (June 2026) / Statutory / Source Reference?

Value (June 2026): 74%; Statutory / Source Reference: Finance Act 2021

48 FDI in Private Banks — Value (June 2026) / Statutory / Source Reference?

Value (June 2026): 74%; Statutory / Source Reference: (with FII sub-cap 49%)

49 FDI in PSBs — Value (June 2026) / Statutory / Source Reference?

Value (June 2026): 20%; Statutory / Source Reference: Statutory ceiling

50 NaBFID Operations — Value (June 2026) / Statutory / Source Reference?

Value (June 2026): Started 1 Oct 2021; Statutory / Source Reference: NaBFID Act 2021

51 NARCL Licence — Value (June 2026) / Statutory / Source Reference?

Value (June 2026): Granted 4 Oct 2021; Statutory / Source Reference: ARC under SARFAESI

52 ARC NOF Requirement — Value (June 2026) / Statutory / Source Reference?

Value (June 2026): ₹300 crore by Mar 2026; Statutory / Source Reference: RBI Master Direction Oct 2022

53 PSU Banks Count — Value (June 2026) / Statutory / Source Reference?

Value (June 2026): 12; Statutory / Source Reference: Post-merger 1 Apr 2020

54 PSB Privatisation — Value (June 2026) / Statutory / Source Reference?

Value (June 2026): IDBI Bank divestment in advanced stage; Statutory / Source Reference: Per Budget 2021-22 announcement

55 Forex Reserves — Value (June 2026) / Statutory / Source Reference?

Value (June 2026): > USD 690 billion; Statutory / Source Reference: Among top 4 globally

56 Regulatory Sandbox — RBI — Value (June 2026) / Statutory / Source Reference?

Value (June 2026): Operational since 13 Aug 2019; Statutory / Source Reference: Multiple thematic cohorts

57 FI-Index — Value (June 2026) / Statutory / Source Reference?

Value (June 2026): 65.1 (FY24); Statutory / Source Reference: Released by RBI Sep 2024

58 PMJDY Accounts — Value (June 2026) / Statutory / Source Reference?

Value (June 2026): 53+ crore; Statutory / Source Reference: mid-2025

59 UPI Monthly Volume — Value (June 2026) / Statutory / Source Reference?

Value (June 2026): >18 billion transactions; Statutory / Source Reference: Q1 FY 2026-27

60 CIRP Outer Limit — Value (June 2026) / Statutory / Source Reference?

Value (June 2026): 330 days; Statutory / Source Reference: IBC, 2016

61 PSB Gross NPA Ratio (Mar 26) — Value (June 2026) / Statutory / Source Reference?

Value (June 2026): ~3.0%; Statutory / Source Reference: Down from 14.6% peak in Mar 2018

One-linersLiquidity Management Framework - LAF, OMO, MSS, Operation Twist