Banking & Finance MCQs

The Retail Digital Rupee is a digital token that represents legal tender, issued in the same denominations as paper currency and coins.

T+0 settlement significantly reduces the time between trade execution and settlement, thereby enhancing market efficiency, reducing counterparty risk, and improving liquidity for investors.

India transitioned to a T+1 settlement cycle for all equity scrips from January 27, 2023, before SEBI introduced the option for T+0 settlement.

T+0 settlement means that the settlement of funds and securities happens on the same day the trade is executed (Trade date + 0 days).

As a Central Bank Digital Currency (CBDC), the Digital Rupee (e₹) is issued by the Reserve Bank of India, the country's central bank.

The primary objectives of e₹ include reducing currency management costs, enhancing payment system efficiency, and providing an alternative to physical cash. While it might indirectly benefit financial inclusion, it's not its direct primary objective in the same way as other government schemes.

The nationwide rollout of the Digital Rupee (e₹) by the RBI is primarily for the retail segment (e₹-R), allowing the general public to use it for transactions. While a wholesale CBDC (e₹-W) was also piloted, the public rollout focuses on retail use.

The roadmap stresses the importance of robust data governance, privacy, and ethical AI frameworks to ensure secure and responsible adoption of technology.

AI and ML models are being integrated to analyze vast datasets for better credit risk assessment and to reduce non-performing assets (NPAs).

The roadmap focuses on leveraging AI for fraud detection, personalized banking, credit underwriting, and improving overall operational efficiency in PSBs.