MCQs on RBI Digital Rupee and ULI Integration April 2026

21.

In the context of monetary policy, what does the Repo Rate primarily signify?

A The rate at which commercial banks lend to the RBI.

B The rate at which the RBI lends short-term money to commercial banks.

C The rate at which the government borrows from the RBI.

D The rate at which commercial banks lend to each other.

22.

Which type of infrastructure projects would be eligible for funding under NABARD's Green Rural Infrastructure Fund?

A Projects focused solely on increasing agricultural output.

B Projects involving renewable energy installations in rural areas.

C Projects for building new highways connecting major cities.

D Projects for commercial real estate development in rural towns.

23.

What is the total corpus allocated by NABARD for the Green Rural Infrastructure Fund?

A ₹10,000 Crore

B ₹15,000 Crore

C ₹20,000 Crore

D ₹5,000 Crore

24.

What is the primary objective of the Green Rural Infrastructure Fund launched by NABARD?

A To finance traditional rural infrastructure projects.

B To promote and finance green and sustainable infrastructure in rural areas.

C To provide loans for agricultural machinery only.

D To support urban development projects with a rural component.

25.

What is a primary benefit expected from the implementation of T+0 settlement by SEBI?

A Increased volatility in the stock market.

B Reduced risk of counterparty default and improved liquidity.

C Longer settlement cycles for investors.

D Higher transaction costs for brokers.

26.

Which category of companies will initially be subject to SEBI's mandatory T+0 settlement?

A All listed companies on Indian stock exchanges.

B Top 100 companies by market capitalization.

C Top 500 companies by market capitalization.

D Companies in the Nifty 50 index.

27.

What does 'T+0' settlement signify in the context of stock market transactions as implemented by SEBI?

A Settlement of trades on the same day (Trade day + 0 days).

B Settlement of trades within two working days (Trade day + 2 days).

C Settlement of trades on the next working day (Trade day + 1 day).

D Settlement of trades within zero hours of the trade execution.

28.

Under the RBI's Digital Lending Guidelines 2.0, what is expected from entities using AI for lending decisions?

A To provide detailed explanations of their AI models to customers upon request.

B To obtain prior approval from the RBI for every AI model used.

C To disclose the specific AI software vendor they are using.

D To ensure their AI systems are only used for initial loan screening.

29.

Which aspect of AI usage in digital lending does RBI's updated guidelines specifically address for enhanced transparency?

A The cost of AI software procurement.

B The algorithms used for credit scoring and risk assessment.

C The marketing strategies for AI-powered loan products.

D The training data used to develop AI models.

30.

What is a key objective of the RBI's Digital Lending Guidelines 2.0 concerning Artificial Intelligence (AI)?

A To mandate the use of AI in all loan approvals.

B To ensure transparency and accountability in AI-driven credit decisions.

C To restrict the use of AI by lending institutions.

D To promote the development of AI algorithms for loan recovery.

Banking & Finance MCQs