Banking & Monetary Policy — Practice MCQs

With reference to the RBI's surplus transfer to the Centre for FY25, consider the following statements:

1. The transfer of approximately ₹2.69 lakh crore was the highest ever surplus transferred by the RBI.
2. The size of the surplus is governed by the Economic Capital Framework recommended by the Bimal Jalan Committee.
3. The surplus is transferred under Section 47 of the Reserve Bank of India Act, 1934.

Which of the statements given above are correct?

Regarding the operating framework of monetary policy in India, consider the following statements:

1. The Standing Deposit Facility (SDF) replaced the fixed-rate reverse repo as the floor of the LAF corridor in 2022.
2. Banks need to provide eligible securities as collateral while parking funds with the RBI under the SDF.
3. The Marginal Standing Facility rate forms the ceiling of the policy corridor at 25 basis points above the repo rate.

Which of the statements given above is/are correct?

Match the following RBI tools with their primary purpose:

Choose the correct match:

With reference to the Reserve Bank Integrated Ombudsman Scheme (RB-IOS), 2021, consider the following statements:

1. It merged three earlier ombudsman schemes into a single 'One Nation, One Ombudsman' framework.
2. Its jurisdiction extends to scheduled commercial banks, NBFCs and Payment System Participants.
3. Complaints can be filed only through physical post and not through any digital portal.

Which of the statements given above is/are correct?

Regarding the Unified Lending Interface (ULI) of the RBI, consider the following statements:

1. ULI works on a consent-based architecture similar to the Account Aggregator framework.
2. It allows lenders to access verified data such as land records, GST returns and satellite-derived crop information in real time.
3. ULI is restricted to scheduled commercial banks; NBFCs and FinTechs are not allowed to participate.

Which of the statements given above are correct?

Consider the following statements about Regional Rural Banks (RRBs):

1. RRBs are jointly owned by the Central Government, the Sponsor Bank and the concerned State Government in the ratio 50:35:15.
2. Following the third phase of consolidation, the country now has one RRB per State under the 'One State – One RRB' scheme.
3. RRBs are governed by the Banking Regulation Act, 1949 only; the Regional Rural Banks Act, 1976 was repealed in 2024.

Which of the statements given above is/are correct?

Examine the following Assertion (A) and Reason (R):

Assertion (A): AU Small Finance Bank received the RBI's in-principle approval to convert into a universal commercial bank in 2025.

Reason (R): RBI norms allow a Small Finance Bank to apply for universal-bank status only after completing five years of profitable operations with GNPA below 3% and net NPA below 1%.

With reference to the SARFAESI Act, 2002, consider the following statements:

1. It enables secured creditors to enforce their security interest without the intervention of a court.
2. The Act applies to any loan, including those secured against agricultural land.
3. Asset Reconstruction Companies (ARCs) are registered under the SARFAESI Act and regulated by the RBI.

Which of the statements given above is/are correct?

Consider the following statements about the proposed Financial Resolution and Deposit Insurance (FRI) framework, 2025:

1. The 2025 draft drops the controversial 'bail-in' clause that featured in the earlier 2017 FRDI Bill.
2. Deposit insurance cover under the DICGC currently stands at ₹5 lakh per depositor per bank.
3. The proposed Resolution Corporation will cover banks, insurers and NBFCs but exclude payment system operators.

Which of the statements given above are correct?