MCQs - 2026-10

The 'Make in India' initiative, launched earlier, has been a cornerstone in driving the manufacturing sector's growth by encouraging foreign direct investment, fostering innovation, and improving the ease of doing business.

Stricter regulations often translate to increased compliance burdens and costs for fund managers. This can lead to a more risk-averse investment strategy and potentially a consolidation within the AIF industry.

Category I AIFs, as defined by SEBI, include venture capital funds, which primarily invest in startups and early-stage companies, as well as social impact funds and infrastructure funds.

The significant expansion and evolving nature of AIFs, which often involve complex investment strategies and leverage, necessitate closer regulatory oversight to mitigate potential risks to investors and the broader financial system.

The RBI's framework emphasizes data privacy and security, prohibiting digital lenders from collecting personal data that is not essential for the loan assessment process, thereby protecting borrowers from potential misuse of their information.

The RBI's framework places the onus on the regulated entities (banks and NBFCs) that engage in digital lending, either directly or through DLAs, to ensure that their partners and platforms comply with all regulatory requirements.

The enhanced framework focuses on protecting borrowers by mandating greater transparency in all aspects of digital lending, including fees, charges, and repayment terms, to prevent predatory practices.

The meeting highlighted the massive funding gap for renewable energy projects in the Global South to meet 2030 climate targets.

The Loss and Damage Fund was a central topic, with nations pledging to operationalize it more effectively to assist vulnerable countries.

The NCQG is intended to replace the previous $100 billion annual goal, providing a more robust financial framework for climate action in developing countries.