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Banking Exam Current Affairs — Part 3

July – August 2025 Current Affairs

100 original MCQs • Jul–Aug 2025 • Medium difficulty

Attempt each question first, then click Show Answer to reveal the correct option with full explanation.

Page 1 of 10 • 10 questions

Q1.In August 2025, RBI released its Annual Report for 2024-25. Which of the following best describes the primary mandate of the Reserve Bank of India as stated in the RBI Act, 1934?

easy

RBI Functions

(A)To regulate the issue of bank notes and keep reserves for securing monetary stability in India

(B)To provide banking services to the central government only

(C)To manage foreign exchange reserves exclusively

(D)To supervise and regulate only commercial banks

Q2.The RBI's Monetary Policy Committee (MPC) meets how many times in a financial year as per the RBI Act?

medium

Monetary Policy

(A)4 times

(B)6 times

(D)12 times

Q3.Which of the following instruments is NOT used by RBI as part of its Liquidity Adjustment Facility (LAF)?

medium

Monetary Policy Instruments

(A)Repo Rate

(B)Reverse Repo Rate

(C)Marginal Standing Facility (MSF)

(D)Open Market Operations (OMO)

Q4.The Standing Deposit Facility (SDF) introduced by RBI in April 2022 serves what purpose?

hard

Monetary Policy Instruments

(A)To provide liquidity to banks at a penalty rate

(B)To absorb excess liquidity from banks without requiring collateral

(C)To provide long-term refinance to development banks

(D)To manage foreign exchange liquidity

Q5.India's Consumer Price Index (CPI) inflation target under the Flexible Inflation Targeting framework is:

easy

Inflation Targeting

(A)2% with +/- 1% tolerance band

(B)4% with +/- 2% tolerance band

(D)6% with +/- 2% tolerance band

Q6.Which of the following correctly describes the 'Prompt Corrective Action (PCA)' framework of RBI?

medium

Bank Regulation

(A)A framework to provide emergency liquidity to distressed banks

(B)A framework with risk thresholds that trigger supervisory actions on weak banks

(C)A legal mechanism to initiate winding up of failed banks

(D)A scheme to merge weak banks with stronger ones

Q7.As per RBI guidelines, the Loan-to-Value (LTV) ratio for home loans up to Rs. 30 lakh is:

hard

Priority Sector Lending

(A)75%

(B)80%

(D)95%

Q8.The 'Interest Rate Swap (IRS)' and 'Forward Rate Agreement (FRA)' in India's financial market are settled through which platform?

hard

Financial Markets

(A)Bombay Stock Exchange (BSE)

(B)Clearing Corporation of India Ltd (CCIL)

(C)National Securities Clearing Corporation Ltd (NSCCL)

(D)Fixed Income Money Market and Derivatives Association (FIMMDA)

Q9.In July 2025, India's forex reserves crossed a new milestone. Foreign Exchange Reserves of India consist of which of the following components?

medium

Foreign Exchange

(A)Foreign currency assets only

(B)Foreign currency assets and gold only

(C)Foreign currency assets, gold, SDRs, and reserve tranche with IMF

(D)Foreign currency assets, gold, and external debt

Q10.The 'Unified Payments Interface (UPI)' operates on which payment settlement model?

medium

Payment Systems

(A)Deferred Net Settlement (DNS)

(B)Real Time Gross Settlement (RTGS)

(C)Immediate Payment Service (IMPS) infrastructure with 24x7 settlement

(D)National Automated Clearing House (NACH) model

0 of 10 answers revealed on this page