MCQs on RBI Digital Rupee and ULI Integration April 2026

331.

What is expected to improve for investors due to the enhanced disclosure requirements in the new framework?

A Reduced access to information

B Greater transparency and confidence

C Increased complexity in understanding instruments

D Limited investment options

332.

The revised framework introduces a more flexible approach to which criterion, making it easier for originators to transfer assets?

A Capital Adequacy Ratio (CAR)

B 'True Sale' criteria

C Reserve Requirement Ratio (RRR)

D Liquidity Coverage Ratio (LCR)

333.

Which of the following is a key change introduced in the revised framework regarding Minimum Holding Period (MHP)?

A Increase in MHP for all standard assets

B Reduction in MHP for certain types of standard assets

C Elimination of MHP altogether

D MHP made optional for originators

334.

What is the primary objective of the RBI's new framework for securitisation of standard assets?

A To restrict the flow of credit

B To simplify the process, enhance market liquidity, and promote responsible practices

C To increase the cost of borrowing for banks

D To discourage the transfer of credit risk

335.

The strengthening of the SGB framework is expected to:

A Discourage investment in green initiatives

B Increase borrowing costs for green projects

C Boost investor confidence and potentially lower borrowing costs for green projects

D Reduce India's commitment to climate action

336.

What is a key enhancement in the reporting requirements for India's SGBs?

A Reduced transparency on fund utilization

B Focus on financial returns only

C More granular data on environmental benefits achieved

D Exclusion of third-party verification reports

337.

The updated SGB framework requires projects to align with which international goals?

A World Trade Organization (WTO) agreements

B International Monetary Fund (IMF) lending targets

C UN Sustainable Development Goals (SDGs)

D Paris Agreement on Climate Change (specific targets)

338.

Which of the following is a new eligible green project category added to India's SGB framework?

A Fossil fuel exploration

B Sustainable water management

C Traditional manufacturing industries

D Urban sprawl development

339.

What is the primary purpose of Sovereign Green Bonds (SGBs)?

A To finance defense projects

B To raise capital for projects with positive environmental and climate benefits

C To fund infrastructure development without environmental considerations

D To manage foreign exchange reserves

340.

The RBI's new guidelines for digital lending platforms aim to enhance trust and credibility in the sector by:

A Reducing competition among lenders

B Bringing entities under regulatory oversight

C Increasing the complexity of loan applications

D Limiting the types of loans offered

Banking & Finance MCQs