MCQs 2026

The Repo Rate is the key policy rate through which the RBI signals its monetary policy stance. Adjusting it influences lending rates in the economy, thereby impacting money supply and inflation, making it the primary tool for inflation management.

The PLI scheme covers various manufacturing sectors like automobiles, electronics, pharmaceuticals, textiles, food processing, white goods, etc., to boost domestic production. While food processing is covered, 'Primary Agricultural Produce Export' as a standalone category is not a direct focus of the manufacturing-centric PLI scheme.

The PLI scheme offers incentives, typically calculated as a percentage of incremental sales (over a base year) of manufactured goods, to eligible companies for a period of 5-7 years, encouraging higher production volumes.

The PLI scheme aims to incentivize domestic manufacturing in key sectors, attract investments, enhance India's manufacturing capabilities and exports, and create employment opportunities, thereby making Indian industries globally competitive and reducing reliance on imports.

The RBI guidelines include a provision for a 'cooling-off' or 'look-up' period during which borrowers can exit the loan by repaying the principal amount without penalty, if they decide not to proceed with the loan. This enhances borrower protection and flexibility.

A key guideline mandates that loan disbursements must be made directly into the borrower's bank account by the Regulated Entity (RE), and repayments must also be made directly to the RE, without any pass-through via Lending Service Providers (LSPs), to enhance transparency.

The RBI's tightened norms primarily aim to safeguard borrowers from predatory lending practices, exorbitant interest rates, and issues like data privacy and aggressive recovery methods, thereby preventing over-indebtedness and ensuring fair practices.

NEEDS_REVIEW

NEEDS_REVIEW

The ASEAN Economic Community (AEC) was established to create a single market and production base for the ASEAN region.