📊 IBPS Banking — Parts 16 & 17: Indian Economy + Current Affairs
120 Original MCQs | Indian Economy · Fiscal Policy · Monetary Policy · RBI Updates · Digital Payments · Budget 2024-25
🎯 Exam Strategy: Economy & Current Affairs together carry 15–20 marks in IBPS PO/Clerk Banking Awareness. Focus on GDP definitions, RBI policy rates, and Union Budget highlights. Current RBI Governor: Sanjay Malhotra (from December 2024).
📘 PART 16: Indian Economy (Q.1–60)
Section 1 — National Income, GDP & Economic Indicators (Q.1–20)
Key Concepts: GDP (Gross Domestic Product) = C + I + G + (X−M). GVA (Gross Value Added) = GDP − Net Taxes. GNP = GDP + Net Factor Income from Abroad. NNP = GNP − Depreciation. India's GDP is measured at constant prices (real GDP) for growth comparison. Base year for India's GDP series: 2011-12. CSO merged with NSSO to form NSO (National Statistical Office) in 2019. India is the 5th largest economy by nominal GDP and 3rd largest by PPP.
Easy Q.1
India's GDP is currently calculated at which base year prices?
Answer: (B) 2011-12
India revised its GDP base year from 2004-05 to 2011-12 in January 2015. All real GDP growth figures are measured at 2011-12 constant prices.
India revised its GDP base year from 2004-05 to 2011-12 in January 2015. All real GDP growth figures are measured at 2011-12 constant prices.
Easy Q.2
Which formula correctly defines Gross National Product (GNP)?
Answer: (B) GDP + Net Factor Income from Abroad
GNP = GDP + NFIA (Net Factor Income from Abroad). NFIA = factor income earned by residents abroad − factor income earned by non-residents in India.
GNP = GDP + NFIA (Net Factor Income from Abroad). NFIA = factor income earned by residents abroad − factor income earned by non-residents in India.
Easy Q.3
Which government body publishes India's National Income estimates?
Answer: (C) NSO
NSO, formed in 2019 by merging CSO and NSSO, publishes National Accounts Statistics including GDP estimates. RBI publishes monetary data, not national income.
NSO, formed in 2019 by merging CSO and NSSO, publishes National Accounts Statistics including GDP estimates. RBI publishes monetary data, not national income.
Moderate Q.4
If GDP at market prices = ₹200 lakh crore and Net Indirect Taxes = ₹20 lakh crore, what is GVA at basic prices?
Answer: (A) ₹180 lakh crore
GVA at basic prices = GDP at market prices − Net Indirect Taxes (taxes minus subsidies). ₹200 − ₹20 = ₹180 lakh crore.
GVA at basic prices = GDP at market prices − Net Indirect Taxes (taxes minus subsidies). ₹200 − ₹20 = ₹180 lakh crore.
Moderate Q.5
India's CPI (Consumer Price Index) inflation is measured by combining which two sub-indices with what weightage for Rural and Urban respectively?
Answer: (B) 69.2% Rural, 30.8% Urban
Combined CPI (Base: 2012=100) weights: Rural 69.2%, Urban 30.8%. Food & Beverages carry the highest weight (~45.86%) in the CPI basket.
Combined CPI (Base: 2012=100) weights: Rural 69.2%, Urban 30.8%. Food & Beverages carry the highest weight (~45.86%) in the CPI basket.
Moderate Q.6
The WPI (Wholesale Price Index) in India uses which year as base?
Answer: (B) 2011-12
WPI base year was revised to 2011-12 in 2017. It covers ~697 commodity items. Manufactured products have the highest weight (~64%) in WPI.
WPI base year was revised to 2011-12 in 2017. It covers ~697 commodity items. Manufactured products have the highest weight (~64%) in WPI.
Moderate Q.7
Which of the following is NOT part of India's GDP calculation using the Expenditure Method?
Answer: (C) Transfer Payments
GDP (Expenditure) = C + I + G + (X−M). Transfer payments are excluded because they don't represent production of goods/services — they are mere redistribution of income.
GDP (Expenditure) = C + I + G + (X−M). Transfer payments are excluded because they don't represent production of goods/services — they are mere redistribution of income.
Moderate Q.8
India's Index of Industrial Production (IIP) is released by which authority?
Answer: (C) NSO under Ministry of Statistics
IIP (Base: 2011-12=100) is released monthly by NSO. It covers Mining (14.37%), Manufacturing (77.63%), and Electricity (7.99%).
IIP (Base: 2011-12=100) is released monthly by NSO. It covers Mining (14.37%), Manufacturing (77.63%), and Electricity (7.99%).
Hard Q.9
The "Twin Balance Sheet Problem" in India refers to which two entities having stressed balance sheets simultaneously?
Answer: (B) Banks and Corporate Borrowers
Identified by CEA Arvind Subramanian (~2015-16): over-leveraged corporates had stressed balance sheets causing NPAs, which stressed bank balance sheets in turn. Led to the IBC 2016 and NARCL formation.
Identified by CEA Arvind Subramanian (~2015-16): over-leveraged corporates had stressed balance sheets causing NPAs, which stressed bank balance sheets in turn. Led to the IBC 2016 and NARCL formation.
Hard Q.10
India's GDP deflator is defined as:
Answer: (B) (Nominal GDP / Real GDP) × 100
GDP Deflator measures economy-wide price change. Unlike CPI, it covers all domestically produced goods. A deflator of 110 means prices rose 10% since base year.
GDP Deflator measures economy-wide price change. Unlike CPI, it covers all domestically produced goods. A deflator of 110 means prices rose 10% since base year.
Easy Q.11
India replaced the Planning Commission with NITI Aayog in which year?
Answer: (B) 2015
NITI Aayog (National Institution for Transforming India) was established on 1 January 2015, replacing the 65-year-old Planning Commission. PM is ex-officio Chairperson.
NITI Aayog (National Institution for Transforming India) was established on 1 January 2015, replacing the 65-year-old Planning Commission. PM is ex-officio Chairperson.
Easy Q.12
Which economic indicator measures the total market value of all final goods and services produced within a country's borders in a year?
Answer: (C) GDP
GDP (Gross Domestic Product) measures production within national borders regardless of producer nationality. GNP includes production by nationals abroad.
GDP (Gross Domestic Product) measures production within national borders regardless of producer nationality. GNP includes production by nationals abroad.
Moderate Q.13
India's MSME sector revised size definitions in 2020. Which correctly defines a "Small Enterprise" under the revised norms?
Answer: (B) Investment ≤₹10cr, Turnover ≤₹50cr
2020 Revision: Micro (≤₹1cr/₹5cr), Small (≤₹10cr/₹50cr), Medium (≤₹50cr/₹250cr). Manufacturing and Services categories merged for uniform treatment.
2020 Revision: Micro (≤₹1cr/₹5cr), Small (≤₹10cr/₹50cr), Medium (≤₹50cr/₹250cr). Manufacturing and Services categories merged for uniform treatment.
Moderate Q.14
What is the significance of India's "Current Account Deficit" (CAD)?
Answer: (B) Excess of imports of goods, services and transfers over exports
CAD = Trade Deficit + Services Deficit + Net Transfers. India's CAD is typically funded by Capital Account surplus (FDI, FPI, ECBs). A large CAD can depreciate the rupee.
CAD = Trade Deficit + Services Deficit + Net Transfers. India's CAD is typically funded by Capital Account surplus (FDI, FPI, ECBs). A large CAD can depreciate the rupee.
Moderate Q.15
Make in India initiative was launched in which year and primarily targets increasing manufacturing's share in GDP to what percentage?
Answer: (B) 2014, 25%
Make in India launched September 2014 with target to raise manufacturing from ~15% to 25% of GDP by 2025. Focuses on 25 key sectors including Defence, Automobile, Electronics, Pharma.
Make in India launched September 2014 with target to raise manufacturing from ~15% to 25% of GDP by 2025. Focuses on 25 key sectors including Defence, Automobile, Electronics, Pharma.
Hard Q.16
Production-Linked Incentive (PLI) Scheme in India offers incentives based on which criterion?
Answer: (B) Incremental sales from domestic manufacturing over base year
PLI offers 4–20% incentive on incremental sales beyond the base year figure. Covers 14 sectors (Mobile phones, API, Solar PV, Textiles, White Goods, etc.) with total outlay ~₹1.97 lakh crore.
PLI offers 4–20% incentive on incremental sales beyond the base year figure. Covers 14 sectors (Mobile phones, API, Solar PV, Textiles, White Goods, etc.) with total outlay ~₹1.97 lakh crore.
Hard Q.17
Atmanirbhar Bharat package announced in May 2020 was approximately what % of India's GDP?
Answer: (B) 10%
The ₹20 lakh crore Atmanirbhar Bharat package (announced May 2020) was approximately 10% of India's GDP. It covered MSMEs, agriculture, coal, defence, education, and healthcare sectors.
The ₹20 lakh crore Atmanirbhar Bharat package (announced May 2020) was approximately 10% of India's GDP. It covered MSMEs, agriculture, coal, defence, education, and healthcare sectors.
Hard Q.18
India's GST was implemented from which date, replacing which major indirect tax?
Answer: (B) 1 July 2017, replacing Central Excise, VAT, Service Tax and others
GST launched 1 July 2017 with slabs of 0%, 5%, 12%, 18%, 28%. It subsumed 17 central and state taxes. "One nation, one tax, one market" — Article 279A governs the GST Council.
GST launched 1 July 2017 with slabs of 0%, 5%, 12%, 18%, 28%. It subsumed 17 central and state taxes. "One nation, one tax, one market" — Article 279A governs the GST Council.
Easy Q.19
In India's GST, IGST (Integrated GST) is applicable on which transactions?
Answer: (B) Inter-state sales and imports
IGST = CGST + SGST rate, collected by Central Government and shared with states. CGST+SGST applies to intra-state. IGST revenue distributed via Finance Commission formula.
IGST = CGST + SGST rate, collected by Central Government and shared with states. CGST+SGST applies to intra-state. IGST revenue distributed via Finance Commission formula.
Moderate Q.20
India's economic liberalisation reforms of 1991 were initiated under which Finance Minister's tenure?
Answer: (B) Dr. Manmohan Singh
Dr. Manmohan Singh as Finance Minister under PM Narasimha Rao introduced LPG reforms (Liberalisation, Privatisation, Globalisation) in 1991 during India's BOP crisis when forex reserves covered only 3 weeks of imports.
Dr. Manmohan Singh as Finance Minister under PM Narasimha Rao introduced LPG reforms (Liberalisation, Privatisation, Globalisation) in 1991 during India's BOP crisis when forex reserves covered only 3 weeks of imports.
Section 2 — Fiscal Policy, Union Budget & Taxation (Q.21–40)
Union Budget Concepts: Revenue Account (recurring transactions) vs Capital Account (asset creation). Fiscal Deficit = Total Expenditure − Total Revenue Receipts − Non-debt Capital Receipts. Revenue Deficit = Revenue Expenditure − Revenue Receipts. Primary Deficit = Fiscal Deficit − Interest Payments. FRBM Act 2003 sets fiscal consolidation targets. India's fiscal year: April–March.
Easy Q.21
Which deficit indicates that a government is borrowing even to pay interest on past loans?
Answer: (A) Primary Deficit
Primary Deficit = Fiscal Deficit − Interest Payments. A zero primary deficit means government borrows only to pay interest. A negative primary deficit (surplus) signals improving fiscal health.
Primary Deficit = Fiscal Deficit − Interest Payments. A zero primary deficit means government borrows only to pay interest. A negative primary deficit (surplus) signals improving fiscal health.
Easy Q.22
The FRBM (Fiscal Responsibility and Budget Management) Act was enacted in which year?
Answer: (B) 2003
FRBM Act 2003 mandates progressive reduction of fiscal and revenue deficits. The N.K. Singh Committee (2017) reviewed FRBM targets and recommended a fiscal deficit target of 2.5% of GDP.
FRBM Act 2003 mandates progressive reduction of fiscal and revenue deficits. The N.K. Singh Committee (2017) reviewed FRBM targets and recommended a fiscal deficit target of 2.5% of GDP.
Moderate Q.23
Which of the following is a NON-tax Revenue receipt of the Central Government?
Answer: (C) Dividends from PSUs and RBI surplus
Non-tax revenues include: dividends from PSUs, RBI surplus transfer, interest receipts on loans, fees, fines. Tax revenues include Income Tax, Corporate Tax, GST, Customs, Excise.
Non-tax revenues include: dividends from PSUs, RBI surplus transfer, interest receipts on loans, fees, fines. Tax revenues include Income Tax, Corporate Tax, GST, Customs, Excise.
Moderate Q.24
Which tax was removed by the Union Budget 2024-25 after indexation benefits were modified?
Answer: (C) Indexation benefit on debt mutual funds (LTCG)
Budget 2024-25 removed indexation benefit for real estate LTCG, reducing LTCG rate to 12.5% from 20% with indexation. This was later partially rolled back for properties bought before July 2024.
Budget 2024-25 removed indexation benefit for real estate LTCG, reducing LTCG rate to 12.5% from 20% with indexation. This was later partially rolled back for properties bought before July 2024.
Moderate Q.25
Capital expenditure in the Union Budget is significant because it:
Answer: (B) Creates assets and infrastructure with multiplier effect
Capital expenditure (roads, railways, defence equipment) creates durable assets and has a higher fiscal multiplier (1.5–2.0x) than revenue expenditure. Budget 2024-25 set capex at ₹11.11 lakh crore.
Capital expenditure (roads, railways, defence equipment) creates durable assets and has a higher fiscal multiplier (1.5–2.0x) than revenue expenditure. Budget 2024-25 set capex at ₹11.11 lakh crore.
Moderate Q.26
The Constitutional provision for the formation of the Finance Commission is found in which Article?
Answer: (B) Article 280
Article 280 mandates constitution of Finance Commission every 5 years to recommend distribution of taxes between Centre and States. 16th Finance Commission is constituted for 2026-31 period.
Article 280 mandates constitution of Finance Commission every 5 years to recommend distribution of taxes between Centre and States. 16th Finance Commission is constituted for 2026-31 period.
Hard Q.27
Which of the following is a "devolved" tax (shared between Centre and States as per Finance Commission)?
Answer: (C) Corporation Tax (within shareable pool)
Divisible pool = Income Tax + Corporate Tax + Central GST + Excise (excluding Cesses and Surcharges). Surcharges and Cesses go entirely to Centre and are NOT shared — a key distinction for exams.
Divisible pool = Income Tax + Corporate Tax + Central GST + Excise (excluding Cesses and Surcharges). Surcharges and Cesses go entirely to Centre and are NOT shared — a key distinction for exams.
Hard Q.28
India's capital gains tax on equity mutual funds (LTCG) was reintroduced in which budget after a 14-year exemption?
Answer: (B) Budget 2018-19
Budget 2018-19 (FM Arun Jaitley) reintroduced 10% LTCG tax on equity gains above ₹1 lakh, ending the exemption in place since 2004. Budget 2024-25 raised this to 12.5%.
Budget 2018-19 (FM Arun Jaitley) reintroduced 10% LTCG tax on equity gains above ₹1 lakh, ending the exemption in place since 2004. Budget 2024-25 raised this to 12.5%.
Easy Q.29
Union Budget 2024-25 was presented by which Finance Minister?
Answer: (C) Nirmala Sitharaman
FM Nirmala Sitharaman presented Union Budget 2024-25 on 23 July 2024 — her seventh consecutive budget, a record for any Finance Minister. Focus: Viksit Bharat 2047, employment, skilling.
FM Nirmala Sitharaman presented Union Budget 2024-25 on 23 July 2024 — her seventh consecutive budget, a record for any Finance Minister. Focus: Viksit Bharat 2047, employment, skilling.
Moderate Q.30
In Budget 2024-25, the capital expenditure target was set at approximately:
Answer: (C) ₹11.11 lakh crore
Budget 2024-25 maintained capex at ₹11.11 lakh crore (11.1% increase from previous year; 3.4% of GDP). Emphasis on PM Gati Shakti, road, railway, and urban infrastructure.
Budget 2024-25 maintained capex at ₹11.11 lakh crore (11.1% increase from previous year; 3.4% of GDP). Emphasis on PM Gati Shakti, road, railway, and urban infrastructure.
Moderate Q.31
Disinvestment in India refers to:
Answer: (B) Government selling stake in PSUs
Strategic disinvestment = government ceding management control; Financial disinvestment = partial stake sale retaining control. DIPAM (Department of Investment and Public Asset Management) manages this.
Strategic disinvestment = government ceding management control; Financial disinvestment = partial stake sale retaining control. DIPAM (Department of Investment and Public Asset Management) manages this.
Hard Q.32
India's National Infrastructure Pipeline (NIP) involves investment of approximately ₹__ over 2019-25?
Answer: (B) ₹100 lakh crore
NIP targets ₹111 lakh crore investment across 9,000+ projects over 2019-25. Energy (24%), Roads (18%), Urban (16%), Railways (13%) are top sectors. Centre, States, and Private sector each fund ~33%.
NIP targets ₹111 lakh crore investment across 9,000+ projects over 2019-25. Energy (24%), Roads (18%), Urban (16%), Railways (13%) are top sectors. Centre, States, and Private sector each fund ~33%.
Easy Q.33
The term "fiscal consolidation" means:
Answer: (B) Gradual reduction of government deficit and debt over time
Fiscal consolidation aims to reduce the fiscal deficit-to-GDP ratio over time while maintaining growth. FRBM Act embodies this goal for India's fiscal policy framework.
Fiscal consolidation aims to reduce the fiscal deficit-to-GDP ratio over time while maintaining growth. FRBM Act embodies this goal for India's fiscal policy framework.
Moderate Q.34
Which budget document lists estimates of receipts and payments of the Consolidated Fund of India for the coming year?
Answer: (B) Annual Financial Statement
Article 112 of the Constitution mandates the Annual Financial Statement (AFS). Consolidated Fund = all revenues received + loans raised. Contingency Fund and Public Account are separate.
Article 112 of the Constitution mandates the Annual Financial Statement (AFS). Consolidated Fund = all revenues received + loans raised. Contingency Fund and Public Account are separate.
Hard Q.35
India's fiscal deficit target for FY 2025-26 (as announced in Budget 2024-25) is:
Answer: (C) 4.5% of GDP (target for FY2025-26)
Budget 2024-25 revised fiscal deficit estimate to 4.9% of GDP for FY25 (down from 5.1% in interim budget). FY2026 target set at 4.5%. Long-term FRBM glide path aims for 3% of GDP.
Budget 2024-25 revised fiscal deficit estimate to 4.9% of GDP for FY25 (down from 5.1% in interim budget). FY2026 target set at 4.5%. Long-term FRBM glide path aims for 3% of GDP.
Easy Q.36
Which report is presented one day before the Union Budget and provides an overview of India's economic performance?
Answer: (B) Economic Survey
Economic Survey is prepared by the Economic Division under Chief Economic Adviser (currently V. Anantha Nageswaran). It reviews the economy, identifies challenges, and suggests policy directions.
Economic Survey is prepared by the Economic Division under Chief Economic Adviser (currently V. Anantha Nageswaran). It reviews the economy, identifies challenges, and suggests policy directions.
Moderate Q.37
Which instrument allows the government to meet unforeseen expenditure without Parliamentary approval up to a limit, subsequently presented for ratification?
Answer: (C) Contingency Fund of India
Contingency Fund (Article 267) holds ₹30,000 crore, operated by the President. Used for emergencies — subsequently ratified by Parliament via supplementary demands. Not to be confused with the Public Account.
Contingency Fund (Article 267) holds ₹30,000 crore, operated by the President. Used for emergencies — subsequently ratified by Parliament via supplementary demands. Not to be confused with the Public Account.
Hard Q.38
Zero-Based Budgeting (ZBB) requires each programme to:
Answer: (B) Justify every rupee of expenditure afresh
ZBB starts from zero (not last year's base). Each department must justify all expenditures. India introduced ZBB in 1987 for non-plan expenditure. Contrasts with Incremental Budgeting (traditional approach).
ZBB starts from zero (not last year's base). Each department must justify all expenditures. India introduced ZBB in 1987 for non-plan expenditure. Contrasts with Incremental Budgeting (traditional approach).
Moderate Q.39
India's InvIT (Infrastructure Investment Trust) allows investors to participate in:
Answer: (B) Income from infrastructure assets
InvITs (regulated by SEBI) pool investor money to buy income-generating infrastructure assets. Mandatory 90% distributable cash flow to unit holders. National Highway Authority InvIT and Power Grid InvIT are prominent examples.
InvITs (regulated by SEBI) pool investor money to buy income-generating infrastructure assets. Mandatory 90% distributable cash flow to unit holders. National Highway Authority InvIT and Power Grid InvIT are prominent examples.
Hard Q.40
India's Direct Tax to GDP ratio is approximately (recent years):
Answer: (B) 5–6%
India's direct tax-to-GDP ratio improved to ~6% in recent years (vs ~2.5% in early 2000s). Total tax-to-GDP ratio is ~11–12%, lower than OECD average (~33%). Widening the tax base remains a challenge.
India's direct tax-to-GDP ratio improved to ~6% in recent years (vs ~2.5% in early 2000s). Total tax-to-GDP ratio is ~11–12%, lower than OECD average (~33%). Widening the tax base remains a challenge.
Section 3 — Monetary Policy, Capital Markets & Balance of Payments (Q.41–60)
RBI Monetary Policy Framework: Inflation targeting (CPI) adopted in 2016; target: 4% ±2% (i.e., 2–6%). Monetary Policy Committee (MPC) = 3 RBI members + 3 Government nominees. Policy rates: Repo Rate (rate at which RBI lends to banks), Reverse Repo Rate (rate at which RBI borrows from banks = Repo − 0.25% under LAF corridor), MSF (Marginal Standing Facility = Repo + 0.25%). CRR and SLR are reserve requirements.
Easy Q.41
The Monetary Policy Committee (MPC) targets CPI inflation at:
Answer: (B) 4% ±2%
Flexible Inflation Targeting adopted 2016 (RBI Act amended). Target: 4% CPI ±2% (floor 2%, ceiling 6%). If breached for 3 consecutive quarters, RBI must explain to government. MPC meets 6 times/year.
Flexible Inflation Targeting adopted 2016 (RBI Act amended). Target: 4% CPI ±2% (floor 2%, ceiling 6%). If breached for 3 consecutive quarters, RBI must explain to government. MPC meets 6 times/year.
Easy Q.42
When RBI conducts Open Market Operations (OMO) by BUYING government securities from banks, it aims to:
Answer: (B) Inject liquidity into the banking system
OMO purchases (RBI buys G-secs from banks) → banks receive cash → money supply increases → interest rates fall. OMO sales (RBI sells) absorb liquidity and are contractionary.
OMO purchases (RBI buys G-secs from banks) → banks receive cash → money supply increases → interest rates fall. OMO sales (RBI sells) absorb liquidity and are contractionary.
Moderate Q.43
Which RBI tool was introduced in 2020 that is similar to OMO but specifically targets long-term repo operations to reduce long-term borrowing costs?
Answer: (B) TLTRO
TLTRO introduced during COVID-19 (March 2020): banks borrow from RBI at repo rate for 1–3 years, with condition to deploy funds in corporate bonds/CPs. Ensured credit flow to stressed sectors.
TLTRO introduced during COVID-19 (March 2020): banks borrow from RBI at repo rate for 1–3 years, with condition to deploy funds in corporate bonds/CPs. Ensured credit flow to stressed sectors.
Moderate Q.44
India's SENSEX is the benchmark index of which stock exchange, and it tracks how many companies?
Answer: (B) BSE, 30 companies
SENSEX (Sensitive Index) = BSE's 30-share free-float market cap-weighted index, base year 1978-79=100. NIFTY 50 = NSE's index tracking 50 large-cap companies.
SENSEX (Sensitive Index) = BSE's 30-share free-float market cap-weighted index, base year 1978-79=100. NIFTY 50 = NSE's index tracking 50 large-cap companies.
Moderate Q.45
Foreign Portfolio Investors (FPIs) investing in India are regulated by:
Answer: (B) SEBI
SEBI regulates FPIs (formerly FIIs) under SEBI FPI Regulations 2019. RBI monitors FPI flows for BOP and currency impact. FPIs can invest in equity, debt, and derivatives within prescribed limits.
SEBI regulates FPIs (formerly FIIs) under SEBI FPI Regulations 2019. RBI monitors FPI flows for BOP and currency impact. FPIs can invest in equity, debt, and derivatives within prescribed limits.
Hard Q.46
India's Sovereign Gold Bond (SGB) scheme was launched in 2015. Which statement about SGBs is INCORRECT?
Answer: (D) Maximum subscription limit for trusts is 4 kg per year
SGB limits: Individuals/HUFs: 4 kg/year; Trusts/similar entities: 20 kg/year. The 4 kg limit applies to individuals. Capital gains at maturity are exempt; redemption before maturity on exchange attracts LTCG.
SGB limits: Individuals/HUFs: 4 kg/year; Trusts/similar entities: 20 kg/year. The 4 kg limit applies to individuals. Capital gains at maturity are exempt; redemption before maturity on exchange attracts LTCG.
Hard Q.47
India's current account (in BOP) includes which of the following?
Answer: (C) Remittances from abroad
Current Account = Trade in goods + Trade in services + Primary income (wages, investment income) + Secondary income (remittances, grants). Capital Account covers FDI, FPI, ECBs, banking capital.
Current Account = Trade in goods + Trade in services + Primary income (wages, investment income) + Secondary income (remittances, grants). Capital Account covers FDI, FPI, ECBs, banking capital.
Moderate Q.48
India's exchange rate regime is best described as:
Answer: (B) Managed float (dirty float)
India follows a "managed float" — the rupee floats based on market forces but RBI intervenes periodically to curb excessive volatility. India does not maintain a fixed peg to any currency.
India follows a "managed float" — the rupee floats based on market forces but RBI intervenes periodically to curb excessive volatility. India does not maintain a fixed peg to any currency.
Hard Q.49
India's NIIF (National Infrastructure Investment Fund) is structured as:
Answer: (B) A fund-of-funds with government as anchor investor (49%)
NIIF established 2015: Government of India holds 49%, rest from sovereign wealth funds, pension funds, private investors. Manages Master Fund, Fund of Funds, and Strategic Opportunities Fund. NaBFID complements NIIF for DFI lending.
NIIF established 2015: Government of India holds 49%, rest from sovereign wealth funds, pension funds, private investors. Manages Master Fund, Fund of Funds, and Strategic Opportunities Fund. NaBFID complements NIIF for DFI lending.
Easy Q.50
The Minimum Support Price (MSP) for crops in India is recommended by:
Answer: (C) CACP
CACP (under Ministry of Agriculture) recommends MSP for 23 crops. Government announces MSP before sowing season. FCI procures at MSP. Budget 2018 committed to MSP at C2+50% of production cost.
CACP (under Ministry of Agriculture) recommends MSP for 23 crops. Government announces MSP before sowing season. FCI procures at MSP. Budget 2018 committed to MSP at C2+50% of production cost.
Moderate Q.51
India's Ujjwala Yojana (PMUY) provides:
Answer: (B) LPG connections to BPL women
PMUY launched May 2016. Target expanded to 9.6 crore connections. Budget 2024-25 announced additional 75 lakh connections. Reduces indoor air pollution from firewood/dung cooking.
PMUY launched May 2016. Target expanded to 9.6 crore connections. Budget 2024-25 announced additional 75 lakh connections. Reduces indoor air pollution from firewood/dung cooking.
Easy Q.52
The headquarters of the Securities and Exchange Board of India (SEBI) is in:
Answer: (C) Mumbai
SEBI established 1988, statutory body since 1992 (SEBI Act 1992). HQ: Mumbai (Bandra Kurla Complex). Regional offices in Delhi, Kolkata, Chennai, Ahmedabad. Current Chairman: Tuhin Kanta Pandey (2025).
SEBI established 1988, statutory body since 1992 (SEBI Act 1992). HQ: Mumbai (Bandra Kurla Complex). Regional offices in Delhi, Kolkata, Chennai, Ahmedabad. Current Chairman: Tuhin Kanta Pandey (2025).
Hard Q.53
India's External Sector: Remittances to India are the largest source of forex inflows. Which country sends the MOST remittances to India?
Answer: (B) USA
USA is the top source of remittances to India (~23%), followed by UAE, UK, Saudi Arabia. India is the world's largest recipient of remittances (~$125 billion in 2023 per World Bank estimates).
USA is the top source of remittances to India (~23%), followed by UAE, UK, Saudi Arabia. India is the world's largest recipient of remittances (~$125 billion in 2023 per World Bank estimates).
Moderate Q.54
Which of the following is regulated by IRDAI (Insurance Regulatory and Development Authority of India)?
Answer: (B) Life and Non-life Insurance Companies
IRDAI (est. 1999, Hyderabad HQ) regulates insurance sector. PFRDA regulates pension (NPS/Atal Pension). SEBI regulates mutual funds. RBI regulates NBFCs. IBBI regulates insolvency professionals.
IRDAI (est. 1999, Hyderabad HQ) regulates insurance sector. PFRDA regulates pension (NPS/Atal Pension). SEBI regulates mutual funds. RBI regulates NBFCs. IBBI regulates insolvency professionals.
Hard Q.55
India's "Viksit Bharat 2047" vision targets India becoming a developed nation by 2047. The primary GDP per capita target is approximately:
Answer: (C) $18,000–20,000
Viksit Bharat 2047 targets per capita income of $18,000–20,000 (current ~$2,500) and becoming a $30–35 trillion economy by India's centenary. Requires sustained 8%+ GDP growth.
Viksit Bharat 2047 targets per capita income of $18,000–20,000 (current ~$2,500) and becoming a $30–35 trillion economy by India's centenary. Requires sustained 8%+ GDP growth.
Moderate Q.56
NaBFID (National Bank for Financing Infrastructure and Development) was established in 2021 to function as:
Answer: (B) A Development Finance Institution for long-term infrastructure loans
NaBFID Act 2021: fills the gap left after IDBI Bank's conversion. 100% government-owned initially. Provides long-tenor loans (10–30 years) for roads, power, ports, airports. Regulated by RBI as an AIFI.
NaBFID Act 2021: fills the gap left after IDBI Bank's conversion. 100% government-owned initially. Provides long-tenor loans (10–30 years) for roads, power, ports, airports. Regulated by RBI as an AIFI.
Easy Q.57
Which organisation publishes the "Human Development Index" (HDI) annually?
Answer: (C) UNDP
UNDP (UN Development Programme) publishes HDI. HDI combines: Life expectancy at birth + Expected years of schooling + GNI per capita (PPP). India ranks ~134 (out of 193 countries) as per recent HDR.
UNDP (UN Development Programme) publishes HDI. HDI combines: Life expectancy at birth + Expected years of schooling + GNI per capita (PPP). India ranks ~134 (out of 193 countries) as per recent HDR.
Hard Q.58
India's current account convertibility status means:
Answer: (B) Trade-related transactions are fully convertible; capital account is partially restricted
India achieved full current account convertibility in 1994 (Article VIII, IMF). Capital account convertibility is gradual — FDI, FPI have defined routes; full CAC has been deferred since Tarapore Committee recommendations (1997, 2006).
India achieved full current account convertibility in 1994 (Article VIII, IMF). Capital account convertibility is gradual — FDI, FPI have defined routes; full CAC has been deferred since Tarapore Committee recommendations (1997, 2006).
Moderate Q.59
India's PM-KISAN scheme provides direct income support of ₹6,000/year to farmers. It is paid in:
Answer: (C) Three instalments of ₹2,000 each
PM-KISAN (launched Feb 2019): ₹2,000 every 4 months = ₹6,000/year. Transferred via DBT (Direct Benefit Transfer) to farmers' Aadhaar-linked bank accounts. Covers ~11 crore farmers.
PM-KISAN (launched Feb 2019): ₹2,000 every 4 months = ₹6,000/year. Transferred via DBT (Direct Benefit Transfer) to farmers' Aadhaar-linked bank accounts. Covers ~11 crore farmers.
Hard Q.60
The "J-curve effect" in trade economics refers to:
Answer: (B) Initial worsening of trade balance after currency depreciation, followed by improvement
J-curve: After depreciation, import costs rise immediately (imports are inelastic short-term) worsening CAD, but exports eventually increase as they become cheaper — trade balance improves, tracing a 'J' shape.
J-curve: After depreciation, import costs rise immediately (imports are inelastic short-term) worsening CAD, but exports eventually increase as they become cheaper — trade balance improves, tracing a 'J' shape.
📰 PART 17: Banking Current Affairs (Q.61–120)
Section 4 — RBI Updates & Recent Policy Changes (Q.61–80)
Current RBI Leadership: Sanjay Malhotra became 26th RBI Governor on 11 December 2024 (succeeding Shaktikanta Das). Deputy Governors: M. Rajeshwar Rao, T. Rabi Sankar, Swaminathan J., M. Nagaraju. Current Repo Rate: 6.25% (as of early 2025, after 25 bps cut in February 2025 MPC meeting — first cut since May 2020). CRR: 4.0%. SLR: 18.0%.
Easy Q.61
Who became the 26th Governor of the Reserve Bank of India in December 2024?
Answer: (C) Sanjay Malhotra
Sanjay Malhotra (IAS 1990 batch, Rajasthan cadre) assumed office 11 December 2024 as 26th RBI Governor. He was previously Revenue Secretary, Ministry of Finance. Shaktikanta Das served 2018–2024.
Sanjay Malhotra (IAS 1990 batch, Rajasthan cadre) assumed office 11 December 2024 as 26th RBI Governor. He was previously Revenue Secretary, Ministry of Finance. Shaktikanta Das served 2018–2024.
Easy Q.62
The RBI's Monetary Policy Committee cut the repo rate by 25 basis points in February 2025 to:
Answer: (C) 6.25%
In its February 2025 meeting, MPC cut repo rate from 6.5% to 6.25% — first cut since May 2020. This marked a shift from the extended pause that followed rate hikes during 2022-23 inflation episode.
In its February 2025 meeting, MPC cut repo rate from 6.5% to 6.25% — first cut since May 2020. This marked a shift from the extended pause that followed rate hikes during 2022-23 inflation episode.
Moderate Q.63
RBI's prompt corrective action (PCA) framework is triggered by which of the following parameters?
Answer: (B) CRAR breaching thresholds, high NPA, negative RoA
PCA triggers restrictions on lending, dividends, branch expansion. Capital adequacy, asset quality, and profitability are the three PCA parameters. Banks exit PCA after sustained compliance improvement.
PCA triggers restrictions on lending, dividends, branch expansion. Capital adequacy, asset quality, and profitability are the three PCA parameters. Banks exit PCA after sustained compliance improvement.
Moderate Q.64
RBI's "Expected Loss" based loan loss provisioning framework (replacing "Incurred Loss" IRACAS) was proposed in 2023. What is its key advantage?
Answer: (A) Requires earlier provisioning for potential future losses
Expected Credit Loss (ECL) model (aligned with IFRS 9): provision on Day 1 based on probability of future default (not just after NPA). More prudent, reduces pro-cyclicality. India proposing phased adoption.
Expected Credit Loss (ECL) model (aligned with IFRS 9): provision on Day 1 based on probability of future default (not just after NPA). More prudent, reduces pro-cyclicality. India proposing phased adoption.
Easy Q.65
RBI's Financial Stability Report (FSR) is published:
Answer: (C) Semi-annually
RBI publishes FSR every 6 months (June and December). It assesses macroprudential risks, banking system health, systemic risks, and stress test results. Gross NPA trends are closely tracked.
RBI publishes FSR every 6 months (June and December). It assesses macroprudential risks, banking system health, systemic risks, and stress test results. Gross NPA trends are closely tracked.
Moderate Q.66
India's banking sector gross NPA ratio improved significantly. As per recent FSR, GNPA ratio of SCBs (Scheduled Commercial Banks) fell to approximately:
Answer: (C) 2.5–3%
India's banking sector GNPA ratio improved dramatically from ~11.5% (2018) to below 3% by 2024 — a multi-decade low. Credit growth of 14–16% sustained alongside improving asset quality. PSBs' profits reached record highs in FY24.
India's banking sector GNPA ratio improved dramatically from ~11.5% (2018) to below 3% by 2024 — a multi-decade low. Credit growth of 14–16% sustained alongside improving asset quality. PSBs' profits reached record highs in FY24.
Hard Q.67
RBI's Master Direction on Digital Lending (2022) introduced which key requirement for Regulated Entities?
Answer: (C) Loan disbursals must flow directly to borrower's bank account
RBI's Digital Lending framework (2022): funds must flow from RE directly to borrower; repayments directly to RE. Prevents LSPs from handling borrower funds. KFS (Key Fact Statement) mandatory disclosure.
RBI's Digital Lending framework (2022): funds must flow from RE directly to borrower; repayments directly to RE. Prevents LSPs from handling borrower funds. KFS (Key Fact Statement) mandatory disclosure.
Hard Q.68
Under Basel III norms, India's minimum Capital Conservation Buffer (CCB) for banks is:
Answer: (C) 2.5%
Basel III CCB = 2.5% of RWA (fully phased in). CCB + Minimum Tier 1 (6%) + Tier 2 (2%) = 10.5% total. Countercyclical Capital Buffer (CCyB) is additional (0–2.5%). India's SCBs generally maintain CRAR well above minimums.
Basel III CCB = 2.5% of RWA (fully phased in). CCB + Minimum Tier 1 (6%) + Tier 2 (2%) = 10.5% total. Countercyclical Capital Buffer (CCyB) is additional (0–2.5%). India's SCBs generally maintain CRAR well above minimums.
Moderate Q.69
RBI's Liquidity Coverage Ratio (LCR) requirement mandates banks to maintain how much High Quality Liquid Assets (HQLA) against net cash outflows over a 30-day stress period?
Answer: (C) 100%
LCR = HQLA / Net Cash Outflows ≥ 100%. HQLA includes cash, govt. securities. Introduced post-2008 crisis (Basel III). RBI has been reviewing LCR norms for digital banking era where outflows can be faster.
LCR = HQLA / Net Cash Outflows ≥ 100%. HQLA includes cash, govt. securities. Introduced post-2008 crisis (Basel III). RBI has been reviewing LCR norms for digital banking era where outflows can be faster.
Easy Q.70
Which RBI initiative provides a free framework for banks and fintechs to test new financial products in a controlled environment?
Answer: (B) Regulatory Sandbox
RBI Regulatory Sandbox (2019): allows live testing of innovative financial products with a select customer base under relaxed regulation. Cohorts focus on retail payments, MSME lending, cross-border payments, MSME onboarding.
RBI Regulatory Sandbox (2019): allows live testing of innovative financial products with a select customer base under relaxed regulation. Cohorts focus on retail payments, MSME lending, cross-border payments, MSME onboarding.
Hard Q.71
RBI's "Composite Financial Inclusion Index" (FI Index) is published annually. A higher value indicates:
Answer: (B) Greater financial inclusion depth and penetration
FI Index (0–100): access, usage, quality pillars. India's FI Index rose from 53.9 (March 2021) to 64.2 (March 2024), reflecting expanded banking services reach especially in rural areas.
FI Index (0–100): access, usage, quality pillars. India's FI Index rose from 53.9 (March 2021) to 64.2 (March 2024), reflecting expanded banking services reach especially in rural areas.
Moderate Q.72
India's forex reserves are maintained by RBI primarily in which asset?
Answer: (A) Foreign Currency Assets (primarily US Treasuries)
India's forex reserves (~$680+ billion as of 2025): Foreign Currency Assets (~$590B), Gold (~$60B), SDRs (~$18B), Reserve Tranche position at IMF (~$5B). FCAs include US Treasuries, Eurobonds, deposits with foreign central banks.
India's forex reserves (~$680+ billion as of 2025): Foreign Currency Assets (~$590B), Gold (~$60B), SDRs (~$18B), Reserve Tranche position at IMF (~$5B). FCAs include US Treasuries, Eurobonds, deposits with foreign central banks.
Easy Q.73
India's Central Bank Digital Currency (CBDC) pilot for retail was launched in:
Answer: (C) December 2022
Retail e₹-R pilot launched 1 December 2022 with select banks (SBI, ICICI, Yes, IDFC First) in 4 cities. Wholesale e₹-W pilot started 1 November 2022 for interbank settlement. Both are legal tender.
Retail e₹-R pilot launched 1 December 2022 with select banks (SBI, ICICI, Yes, IDFC First) in 4 cities. Wholesale e₹-W pilot started 1 November 2022 for interbank settlement. Both are legal tender.
Moderate Q.74
Under the SARFAESI Act 2002, banks can recover dues from defaulting borrowers (for loans above ₹__ lakh) WITHOUT filing civil suits:
Answer: (B) ₹20 lakh
SARFAESI Act (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest): applicable for NPA loans ≥₹20 lakh. Banks can take possession of collateral after 60-day notice without court order.
SARFAESI Act (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest): applicable for NPA loans ≥₹20 lakh. Banks can take possession of collateral after 60-day notice without court order.
Hard Q.75
RBI's new framework for Small Finance Banks (SFBs) allows eligible SFBs to convert to Universal Banks after:
Answer: (B) 5 years of scheduled bank status and meeting net worth/CRAR criteria
RBI guidelines (2023): SFBs eligible for Universal Bank licence after 5 years as scheduled bank, with minimum net worth ₹1,000 crore, CRAR ≥15%, net NPAs <1%, satisfactory track record. Voluntary migration path.
RBI guidelines (2023): SFBs eligible for Universal Bank licence after 5 years as scheduled bank, with minimum net worth ₹1,000 crore, CRAR ≥15%, net NPAs <1%, satisfactory track record. Voluntary migration path.
Easy Q.76
RBI's Ombudsman Scheme for banks was integrated into a unified "Integrated Ombudsman Scheme" in which year?
Answer: (C) 2021
RBI Integrated Ombudsman Scheme launched 12 November 2021 — merged Banking, NBFC, and Digital Payments ombudsman schemes. Single point of contact for all complaints. Covers deficiency in service, unfair charges, digital payment failures.
RBI Integrated Ombudsman Scheme launched 12 November 2021 — merged Banking, NBFC, and Digital Payments ombudsman schemes. Single point of contact for all complaints. Covers deficiency in service, unfair charges, digital payment failures.
Moderate Q.77
India's Standing Deposit Facility (SDF) rate introduced in April 2022 is:
Answer: (B) Repo Rate − 0.25%
SDF (introduced April 2022): banks park excess funds with RBI without collateral at Repo Rate − 25 bps. SDF replaced fixed-rate Reverse Repo as the floor of LAF corridor. MSF = Repo + 25 bps (ceiling). This forms the LAF corridor.
SDF (introduced April 2022): banks park excess funds with RBI without collateral at Repo Rate − 25 bps. SDF replaced fixed-rate Reverse Repo as the floor of LAF corridor. MSF = Repo + 25 bps (ceiling). This forms the LAF corridor.
Hard Q.78
Paytm Payments Bank faced RBI action in February 2024 restricting it from accepting new deposits. The primary regulatory concern cited was related to:
Answer: (B) Persistent material supervisory concerns including related-party transactions and KYC non-compliance
RBI directed Paytm Payments Bank (PPBL) to stop accepting deposits/top-ups after February 2024 citing persistent non-compliance. This highlighted RBI's stance on governance and compliance in digital banks.
RBI directed Paytm Payments Bank (PPBL) to stop accepting deposits/top-ups after February 2024 citing persistent non-compliance. This highlighted RBI's stance on governance and compliance in digital banks.
Moderate Q.79
RBI's guidelines on Interest Rate Risk in Banking Book (IRRBB) require banks to manage:
Answer: (B) Risk to NII and Economic Value of Equity from interest rate changes
IRRBB covers repricing risk, yield curve risk, basis risk, and optionality risk. Banks must model NII impact and EVE impact under interest rate shock scenarios and maintain adequate capital buffer.
IRRBB covers repricing risk, yield curve risk, basis risk, and optionality risk. Banks must model NII impact and EVE impact under interest rate shock scenarios and maintain adequate capital buffer.
Easy Q.80
India's PSB Reform "EASE" (Enhanced Access and Service Excellence) Index is published by:
Answer: (B) IBA and Ministry of Finance jointly
EASE Reforms Index (launched 2018) benchmarks PSBs on 120+ parameters across customer service, credit, governance, digitisation. EASE 6.0 (2024) focuses on AI/ML adoption and green financing.
EASE Reforms Index (launched 2018) benchmarks PSBs on 120+ parameters across customer service, credit, governance, digitisation. EASE 6.0 (2024) focuses on AI/ML adoption and green financing.
Section 5 — Digital Payments & Fintech (Q.81–100)
Easy Q.81
India's UPI recorded approximately how many monthly transactions in 2024 at its peak?
Answer: (C) 20 billion+
UPI crossed 20 billion monthly transactions in 2024 (value exceeding ₹20 lakh crore/month). India processes more digital payments than the next 4 largest countries combined. PhonePe and Google Pay lead market share.
UPI crossed 20 billion monthly transactions in 2024 (value exceeding ₹20 lakh crore/month). India processes more digital payments than the next 4 largest countries combined. PhonePe and Google Pay lead market share.
Moderate Q.82
UPI One World — RBI's initiative to allow foreign visitors to use UPI — targets which category of users?
Answer: (B) Foreign nationals visiting India without Indian bank accounts
UPI One World (launched 2023, G20 summit): allows inbound foreigners to link prepaid wallets to UPI without needing Indian bank accounts. Started with G20 delegates; expanded to other tourists. Launched at airports initially.
UPI One World (launched 2023, G20 summit): allows inbound foreigners to link prepaid wallets to UPI without needing Indian bank accounts. Started with G20 delegates; expanded to other tourists. Launched at airports initially.
Easy Q.83
India has linked UPI with which country's payment system to enable cross-border QR-based payments for travellers?
Answer: (B) Singapore (PayNow)
India-Singapore UPI-PayNow linkage (February 2023) allows real-time cross-border money transfers. India also has UPI-PromptPay (Thailand) linkage. NPCI International drives overseas UPI expansion.
India-Singapore UPI-PayNow linkage (February 2023) allows real-time cross-border money transfers. India also has UPI-PromptPay (Thailand) linkage. NPCI International drives overseas UPI expansion.
Moderate Q.84
India's Credit on UPI feature allows users to access which type of credit directly on the UPI interface?
Answer: (B) Pre-approved credit lines from banks linked to UPI ID
"Credit Line on UPI" (RBI circular 2023): banks can offer pre-sanctioned credit lines accessible via UPI. Customers draw from credit line using UPI ID — democratises access to formal credit; alternative to BNPL.
"Credit Line on UPI" (RBI circular 2023): banks can offer pre-sanctioned credit lines accessible via UPI. Customers draw from credit line using UPI ID — democratises access to formal credit; alternative to BNPL.
Hard Q.85
NPCI's "Tokenisation" framework for card payments means:
Answer: (B) Replacing actual card numbers with unique tokens for online transactions
Card tokenisation (mandatory from 2022): unique 16-digit token replaces actual card number at merchant/device level. Reduces data breach risk — merchants store tokens, not card numbers. Applicable to RuPay, Visa, Mastercard.
Card tokenisation (mandatory from 2022): unique 16-digit token replaces actual card number at merchant/device level. Reduces data breach risk — merchants store tokens, not card numbers. Applicable to RuPay, Visa, Mastercard.
Easy Q.86
IMPS (Immediate Payment Service) allows fund transfers up to what amount per transaction (revised limit)?
Answer: (C) ₹10 lakh
IMPS transaction limit enhanced to ₹5 lakh (2022) and later ₹10 lakh for enhanced customer convenience. IMPS is 24×7, instant, available via mobile/internet banking and ATMs. NEFT and RTGS have different limits.
IMPS transaction limit enhanced to ₹5 lakh (2022) and later ₹10 lakh for enhanced customer convenience. IMPS is 24×7, instant, available via mobile/internet banking and ATMs. NEFT and RTGS have different limits.
Moderate Q.87
India's RBI Innovation Hub (RBIH) was established in which city?
Answer: (B) Bengaluru
RBIH (Reserve Bank Innovation Hub): set up 2022 in Bengaluru as a wholly-owned subsidiary of RBI. Developed PRAVAAH (regulatory approvals portal), UDGAM (unclaimed deposits portal), and supports fintech innovation.
RBIH (Reserve Bank Innovation Hub): set up 2022 in Bengaluru as a wholly-owned subsidiary of RBI. Developed PRAVAAH (regulatory approvals portal), UDGAM (unclaimed deposits portal), and supports fintech innovation.
Hard Q.88
India's "Account Aggregator" (AA) framework is based on which regulatory framework that allows consent-based financial data sharing?
Answer: (B) RBI NBFC-AA regulations + DEPA framework
AA framework licensed as NBFC-AA by RBI. Individuals grant consent to share financial data from FIPs (banks, insurers) to FIUs (lenders, advisors). DEPA (championed by iSPIRT) is the underlying consent architecture.
AA framework licensed as NBFC-AA by RBI. Individuals grant consent to share financial data from FIPs (banks, insurers) to FIUs (lenders, advisors). DEPA (championed by iSPIRT) is the underlying consent architecture.
Moderate Q.89
India's RTGS system (Real Time Gross Settlement) handles transactions above what minimum value?
Answer: (B) ₹2 lakh
RTGS: minimum ₹2 lakh, no upper limit. Settled individually in real time. Available 24×7 since December 2020. NEFT: no minimum/maximum, settles in ½-hour batches 24×7. IMPS: up to ₹10 lakh, instant.
RTGS: minimum ₹2 lakh, no upper limit. Settled individually in real time. Available 24×7 since December 2020. NEFT: no minimum/maximum, settles in ½-hour batches 24×7. IMPS: up to ₹10 lakh, instant.
Hard Q.90
RBI's proposed "Unified Lending Interface" (ULI) — also called the "UPI moment for credit" — primarily aims to:
Answer: (B) Integrate diverse data sources for seamless credit delivery
ULI (pilot announced 2023, national rollout proposed): aggregates financial and non-financial data (land records, milk cooperative data, satellite imagery) reducing friction in credit assessment — especially for agriculture and MSME loans.
ULI (pilot announced 2023, national rollout proposed): aggregates financial and non-financial data (land records, milk cooperative data, satellite imagery) reducing friction in credit assessment — especially for agriculture and MSME loans.
Easy Q.91
India's DigiLocker service is an initiative of which ministry?
Answer: (B) MeitY
DigiLocker (digilocker.gov.in): cloud-based platform for digital document storage and verification, linked to Aadhaar. Stores driving licence, marksheets, Aadhaar, vehicle RC, insurance. Over 200 crore documents issued.
DigiLocker (digilocker.gov.in): cloud-based platform for digital document storage and verification, linked to Aadhaar. Stores driving licence, marksheets, Aadhaar, vehicle RC, insurance. Over 200 crore documents issued.
Moderate Q.92
India's e-Rupee (CBDC) is classified as:
Answer: (B) Full legal tender issued by RBI
e-Rupee is a digital form of sovereign currency — issued and backed by RBI. It is not cryptocurrency (no blockchain, not decentralised). Can be used for P2P and P2M transactions. No interest bearing (unlike bank deposits).
e-Rupee is a digital form of sovereign currency — issued and backed by RBI. It is not cryptocurrency (no blockchain, not decentralised). Can be used for P2P and P2M transactions. No interest bearing (unlike bank deposits).
Hard Q.93
Project Nexus (BIS initiative) that India joined in 2024 aims to:
Answer: (B) Interconnect domestic instant payment systems for cross-border payments
BIS Project Nexus (2024): India's UPI connected with fast payment systems of Malaysia (DuitNow), Philippines (InstaPay), Singapore (PayNow), Thailand (PromptPay), EU. Enables multilateral cross-border instant payments.
BIS Project Nexus (2024): India's UPI connected with fast payment systems of Malaysia (DuitNow), Philippines (InstaPay), Singapore (PayNow), Thailand (PromptPay), EU. Enables multilateral cross-border instant payments.
Easy Q.94
FASTag uses which technology for automatic toll collection?
Answer: (C) RFID
FASTag uses passive RFID tags affixed to vehicle windscreen. As vehicle passes toll plaza, RFID reader deducts toll from linked bank account/wallet. Managed by NETC (National Electronic Toll Collection) system of NPCI. Mandatory from February 2021.
FASTag uses passive RFID tags affixed to vehicle windscreen. As vehicle passes toll plaza, RFID reader deducts toll from linked bank account/wallet. Managed by NETC (National Electronic Toll Collection) system of NPCI. Mandatory from February 2021.
Moderate Q.95
India's PMGDISHA (Pradhan Mantri Gramin Digital Saksharta Abhiyan) targeted digital literacy training for how many rural households?
Answer: (B) 6 crore
PMGDISHA (under MeitY): trained 6 crore rural households in digital literacy — basic device usage, digital payments, internet safety. Largest digital literacy programme in the world. Important for financial inclusion in rural areas.
PMGDISHA (under MeitY): trained 6 crore rural households in digital literacy — basic device usage, digital payments, internet safety. Largest digital literacy programme in the world. Important for financial inclusion in rural areas.
Hard Q.96
Which of the following is NOT a feature of India's Account Aggregator (AA) framework?
Answer: (B) AA can store, sell, or use the data it routes
AAs are blind data pipes — they CANNOT view, store, sell, or use data. They only route encrypted data from FIP to FIU based on user consent. This privacy-by-design approach distinguishes AA from traditional data brokers.
AAs are blind data pipes — they CANNOT view, store, sell, or use data. They only route encrypted data from FIP to FIU based on user consent. This privacy-by-design approach distinguishes AA from traditional data brokers.
Moderate Q.97
India's "Open Network for Digital Commerce" (ONDC) is designed to:
Answer: (B) Democratise digital commerce by interoperating buyer and seller apps
ONDC (2022, under DPIIT): open protocol-based network; any buyer app (Paytm, PhonePe) can transact with any seller app (Mystore, Craftsvilla). Breaks platform monopoly. Expanded to ride-hailing (Namma Yatri) and financial services.
ONDC (2022, under DPIIT): open protocol-based network; any buyer app (Paytm, PhonePe) can transact with any seller app (Mystore, Craftsvilla). Breaks platform monopoly. Expanded to ride-hailing (Namma Yatri) and financial services.
Easy Q.98
India's Aadhaar-enabled Payment System (AePS) requires a customer to:
Answer: (B) Aadhaar number and biometric at PoS/micro-ATM
AePS works offline and without smartphone — critical for last-mile financial inclusion. Used for cash withdrawal, balance enquiry, fund transfer. Banking Correspondents use micro-ATM + biometric to deliver services in remote areas.
AePS works offline and without smartphone — critical for last-mile financial inclusion. Used for cash withdrawal, balance enquiry, fund transfer. Banking Correspondents use micro-ATM + biometric to deliver services in remote areas.
Hard Q.99
India's "TReDS" (Trade Receivables Discounting System) platform addresses which financing challenge for MSMEs?
Answer: (B) Delayed payments from large corporates
TReDS (RBI licensed, 2014 amendment): MSMEs upload invoices on platform (RXIL, M1xchange, INVOICEMART); multiple financiers bid to discount invoices; MSME gets immediate cash. Corporates and government entities mandatorily onboarded if turnover >₹500 crore.
TReDS (RBI licensed, 2014 amendment): MSMEs upload invoices on platform (RXIL, M1xchange, INVOICEMART); multiple financiers bid to discount invoices; MSME gets immediate cash. Corporates and government entities mandatorily onboarded if turnover >₹500 crore.
Moderate Q.100
India's PM Gati Shakti National Master Plan is primarily a:
Answer: (B) GIS-based integrated infrastructure planning platform
PM Gati Shakti (October 2021): National Master Plan using GIS mapping to integrate infrastructure projects across 16 ministries. Reduces cost and duplication; enables multi-modal logistics planning. Subsumed 400+ schemes.
PM Gati Shakti (October 2021): National Master Plan using GIS mapping to integrate infrastructure projects across 16 ministries. Reduces cost and duplication; enables multi-modal logistics planning. Subsumed 400+ schemes.
Section 6 — Banking News, Mergers & Budget 2024-25 Finance Sector Highlights (Q.101–120)
Easy Q.101
PSB mergers in April 2020 reduced the number of public sector banks from 27 to:
Answer: (B) 12
10 PSBs merged into 4 (Punjab National Bank absorbed OBC+UBI; Canara Bank absorbed Syndicate; Union Bank absorbed Andhra+Corporation Bank; Indian Bank absorbed Allahabad Bank) reducing count from 27 to 12 large PSBs.
10 PSBs merged into 4 (Punjab National Bank absorbed OBC+UBI; Canara Bank absorbed Syndicate; Union Bank absorbed Andhra+Corporation Bank; Indian Bank absorbed Allahabad Bank) reducing count from 27 to 12 large PSBs.
Moderate Q.102
Union Budget 2024-25 announced a new scheme for employment incentive linked to EPFO. The "Employment Linked Incentive" scheme provides direct DBT benefit for first-time employees earning up to:
Answer: (B) ₹25,000/month
Budget 2024-25 "Prime Minister Package for Employment": first-time EPFO registered employees earning up to ₹1 lakh/month receive one month's salary (up to ₹15,000) as DBT. Scheme B supports employers for hiring additional employees; Scheme C supports manufacturing sector employment.
Budget 2024-25 "Prime Minister Package for Employment": first-time EPFO registered employees earning up to ₹1 lakh/month receive one month's salary (up to ₹15,000) as DBT. Scheme B supports employers for hiring additional employees; Scheme C supports manufacturing sector employment.
Moderate Q.103
Budget 2024-25 raised the limit for "Mudra Loan" (under PM MUDRA Yojana) from ₹10 lakh to:
Answer: (B) ₹20 lakh
Budget 2024-25: MUDRA Tarun category enhanced from ₹10 lakh to ₹20 lakh for borrowers who have previously repaid Tarun loans. New "Tarun+" sub-category. Micro enterprises and first-generation entrepreneurs benefit.
Budget 2024-25: MUDRA Tarun category enhanced from ₹10 lakh to ₹20 lakh for borrowers who have previously repaid Tarun loans. New "Tarun+" sub-category. Micro enterprises and first-generation entrepreneurs benefit.
Easy Q.104
India's largest bank by total assets is:
Answer: (C) State Bank of India
SBI has total assets exceeding ₹60 lakh crore (2024), largest in India. SBI has ~22,000+ branches, 65,000+ ATMs. HDFC Bank (post-HDFC merger) is second largest by total assets and largest private bank.
SBI has total assets exceeding ₹60 lakh crore (2024), largest in India. SBI has ~22,000+ branches, 65,000+ ATMs. HDFC Bank (post-HDFC merger) is second largest by total assets and largest private bank.
Moderate Q.105
HDFC Bank merged with HDFC Ltd (the housing finance company) in which month/year?
Answer: (B) July 2023
HDFC Bank - HDFC Ltd merger effective 1 July 2023 — largest merger in Indian financial history. Created India's largest private bank with balance sheet of ~₹34 lakh crore. HDFC shareholders received 42 HDFC Bank shares per 25 HDFC shares.
HDFC Bank - HDFC Ltd merger effective 1 July 2023 — largest merger in Indian financial history. Created India's largest private bank with balance sheet of ~₹34 lakh crore. HDFC shareholders received 42 HDFC Bank shares per 25 HDFC shares.
Hard Q.106
SEBI's ASBA (Application Supported by Blocked Amount) facility for IPO applications means:
Answer: (B) Application money stays blocked, transferred only on allotment
ASBA: Application money earns interest in applicant's account during processing. On allotment, only allotted amount is debited; rest unblocked. Reduced intermediary risk and improved IPO process efficiency.
ASBA: Application money earns interest in applicant's account during processing. On allotment, only allotted amount is debited; rest unblocked. Reduced intermediary risk and improved IPO process efficiency.
Easy Q.107
India's insurance penetration (insurance premium as % of GDP) is approximately:
Answer: (B) 4%
India's insurance penetration is ~4% of GDP (life: ~3%, non-life: ~1%) vs global average of ~7%. Budget 2024-25 increased FDI limit in insurance sector from 74% to 100% for certain categories to attract investment and expand coverage.
India's insurance penetration is ~4% of GDP (life: ~3%, non-life: ~1%) vs global average of ~7%. Budget 2024-25 increased FDI limit in insurance sector from 74% to 100% for certain categories to attract investment and expand coverage.
Moderate Q.108
Budget 2024-25 announced "Vivaad Se Vishwas 2.0" scheme. It relates to:
Answer: (B) Direct Tax dispute resolution
Vivaad Se Vishwas 2.0 (2024): settles pending income tax disputes as of July 22, 2024. Disputed tax amount paid without penalty and interest. First scheme in 2020 settled 1.48 lakh cases and resolved ₹1.45 lakh crore of disputed demand.
Vivaad Se Vishwas 2.0 (2024): settles pending income tax disputes as of July 22, 2024. Disputed tax amount paid without penalty and interest. First scheme in 2020 settled 1.48 lakh cases and resolved ₹1.45 lakh crore of disputed demand.
Hard Q.109
India's IBC (Insolvency and Bankruptcy Code) 2016 prescribes a resolution timeline of:
Answer: (B) 180 days (extendable to 270 days)
CIRP (Corporate Insolvency Resolution Process) under IBC: 180 days from insolvency commencement order (extendable by 90 days to 270 days). Post-amendment (2019), further extension up to 330 days (including litigation time) is the outer limit.
CIRP (Corporate Insolvency Resolution Process) under IBC: 180 days from insolvency commencement order (extendable by 90 days to 270 days). Post-amendment (2019), further extension up to 330 days (including litigation time) is the outer limit.
Moderate Q.110
India's credit growth in banking sector in FY2024 was approximately:
Answer: (C) 14–16%
India's bank credit grew 14–16% in FY2024, driven by retail (home loans, personal loans), MSME, and infrastructure lending. RBI expressed concern about credit growing faster than deposits (~12%) creating structural liquidity issues.
India's bank credit grew 14–16% in FY2024, driven by retail (home loans, personal loans), MSME, and infrastructure lending. RBI expressed concern about credit growing faster than deposits (~12%) creating structural liquidity issues.
Hard Q.111
RBI's concern about "top-up loans against collateral" in 2024 primarily related to:
Answer: (B) Top-up housing loans used for consumption, understating LTV
RBI circular (2024): "top-up" loans on existing home/vehicle loans were classified as housing loans (lower risk weight) but used for consumption — creating hidden risk. RBI mandated these attract standard personal loan risk weights (100–125%).
RBI circular (2024): "top-up" loans on existing home/vehicle loans were classified as housing loans (lower risk weight) but used for consumption — creating hidden risk. RBI mandated these attract standard personal loan risk weights (100–125%).
Easy Q.112
PMJDY accounts crossed 53 crore mark. The scheme was launched on:
Answer: (B) 28 August 2014
PMJDY (Pradhan Mantri Jan Dhan Yojana) launched 28 August 2014. Guinness World Record for most bank accounts opened in 1 week (18 million in 1 week). 67%+ accounts are in rural/semi-urban areas; 55%+ account holders are women.
PMJDY (Pradhan Mantri Jan Dhan Yojana) launched 28 August 2014. Guinness World Record for most bank accounts opened in 1 week (18 million in 1 week). 67%+ accounts are in rural/semi-urban areas; 55%+ account holders are women.
Moderate Q.113
Budget 2024-25 announced an increase in Short-Term Capital Gains (STCG) tax on equity from 15% to:
Answer: (B) 20%
Budget 2024-25: STCG on equity (held <12 months) raised from 15% to 20%. LTCG (held >12 months, gains >₹1 lakh) raised from 10% to 12.5%. STT on F&O raised. These changes affected capital markets in July 2024.
Budget 2024-25: STCG on equity (held <12 months) raised from 15% to 20%. LTCG (held >12 months, gains >₹1 lakh) raised from 10% to 12.5%. STT on F&O raised. These changes affected capital markets in July 2024.
Hard Q.114
India's "GIFT City" (Gujarat International Finance Tec-City) IFSC houses which regulatory body as unified regulator?
Answer: (B) IFSCA
IFSCA (est. 2020): unified regulator for GIFT City IFSC — regulates banking, insurance, capital markets in one authority. GIFT City aims to attract global financial activity: offshore rupee bonds, global fund management, ship leasing, aircraft leasing.
IFSCA (est. 2020): unified regulator for GIFT City IFSC — regulates banking, insurance, capital markets in one authority. GIFT City aims to attract global financial activity: offshore rupee bonds, global fund management, ship leasing, aircraft leasing.
Moderate Q.115
India's G20 Presidency in 2023 led to which landmark financial inclusion outcome document?
Answer: (B) GPFI New Delhi Declaration on Financial Inclusion
India's G20 Presidency (2023): promoted DPI (Digital Public Infrastructure) — UPI, Aadhaar, CoWIN as global models. G20 Financial Inclusion Action Plan included India's DPI approach as best practice for developing nations.
India's G20 Presidency (2023): promoted DPI (Digital Public Infrastructure) — UPI, Aadhaar, CoWIN as global models. G20 Financial Inclusion Action Plan included India's DPI approach as best practice for developing nations.
Easy Q.116
PSB profits (combined) reached a record high in FY2024. The approximate combined net profit was:
Answer: (C) ₹1.4 lakh crore
PSBs posted record combined net profit of ~₹1.4 lakh crore in FY2024 — up from ₹1.05 lakh crore in FY2023 and a loss of ₹85,000 crore in FY2018. SBI alone contributed ~₹61,000 crore profit in FY2024.
PSBs posted record combined net profit of ~₹1.4 lakh crore in FY2024 — up from ₹1.05 lakh crore in FY2023 and a loss of ₹85,000 crore in FY2018. SBI alone contributed ~₹61,000 crore profit in FY2024.
Moderate Q.117
RBI imposed restrictions on Kotak Mahindra Bank in April 2024 regarding:
Answer: (B) Onboarding new customers via online/mobile channels and issuing new credit cards digitally
RBI (April 2024) directed Kotak Mahindra Bank to stop onboarding new customers through online/mobile banking and issuing new credit cards due to concerns about its IT risk and information security governance framework.
RBI (April 2024) directed Kotak Mahindra Bank to stop onboarding new customers through online/mobile banking and issuing new credit cards due to concerns about its IT risk and information security governance framework.
Hard Q.118
India's "Bima Sugam" — an e-marketplace for insurance — is being developed under which regulator's initiative?
Answer: (C) IRDAI
Bima Sugam (IRDAI initiative): a unified digital platform for purchasing, servicing, and claiming insurance policies across life, general, and health insurers — India's equivalent of a "UPI moment for insurance." Aims to reduce distribution costs and increase penetration.
Bima Sugam (IRDAI initiative): a unified digital platform for purchasing, servicing, and claiming insurance policies across life, general, and health insurers — India's equivalent of a "UPI moment for insurance." Aims to reduce distribution costs and increase penetration.
Hard Q.119
India's "Bad Bank" (NARCL + IDRCL model): what is the consideration structure when NARCL acquires stressed assets from banks?
Answer: (C) 15% upfront cash + 85% Government-guaranteed SRs
NARCL pays 15% cash + 85% SRs (backed by ₹30,600 crore government guarantee). IDRCL (run by private sector management) then resolves the assets. On realisation, SRs are redeemed; shortfall covered by guarantee.
NARCL pays 15% cash + 85% SRs (backed by ₹30,600 crore government guarantee). IDRCL (run by private sector management) then resolves the assets. On realisation, SRs are redeemed; shortfall covered by guarantee.
Moderate Q.120
Budget 2024-25 allocated ₹__ for the PM Awas Yojana (Urban) 2.0 with focus on affordable housing:
Answer: (D) ₹2.2 lakh crore
Budget 2024-25: PMAY Urban 2.0 — 1 crore urban poor and middle class families to be covered; investment of ₹10 lakh crore over 5 years with central assistance of ₹2.2 lakh crore. Focus: EWS/LIG/MIG affordable housing.
Budget 2024-25: PMAY Urban 2.0 — 1 crore urban poor and middle class families to be covered; investment of ₹10 lakh crore over 5 years with central assistance of ₹2.2 lakh crore. Focus: EWS/LIG/MIG affordable housing.
📊 Batch 15 Summary
✅ Part 16 (Q.1–60): Indian Economy — National Income · GDP · Fiscal Policy · Budget 2024-25 · Monetary Policy · Capital Markets · Trade & BOP
✅ Part 17 (Q.61–120): Banking Current Affairs — RBI Governor · Repo Rate · Digital Payments · UPI milestones · PSB Mergers · Budget Finance Highlights
Total MCQs this batch: 120 | Running Total: 890 / 1,000