MCQs - 2026-04

The passage states, 'Regulatory sandbox initiatives continue to foster innovation, allowing new fintech solutions to be tested in a controlled environment before wider deployment'.

The 'Impact/Significance' section states, 'A stronger banking system is crucial for robust credit growth, which is the lifeblood of economic expansion'.

The passage lists widespread adoption of digital lending platforms, expansion of neo-banks, and increased use of AI/ML for fraud detection. Reintroduction of physical passbooks would be contrary to digital transformation.

The passage states, 'Asset quality has shown remarkable improvement, with Gross NPAs (GNPAs) and Net NPAs (NNPAs) across scheduled commercial banks reaching multi-year lows'.

The passage mentions recapitalization of PSBs, implementation of IBC, and stringent asset quality reviews as measures. Reducing interest rates on all loans is a monetary policy tool, not a direct NPA resolution measure.

The passage states, 'Strategically, it enhances India's geopolitical importance and reduces its vulnerability to external supply shocks'.

The 'Impact/Significance' section states, 'It significantly boosts the 'Make in India' initiative'.

The passage lists PLI schemes, improving ease of doing business, and upgrading logistics infrastructure as factors. Increasing import tariffs on all goods would generally hinder, not help, attractiveness as a sourcing hub.

The passage mentions that multinational corporations are adopting a 'China Plus One' strategy to de-risk their operations.

The passage states, 'The vulnerabilities inherent in concentrated global supply chains became starkly evident during the COVID-19 pandemic and were further exacerbated by geopolitical tensions'.