RBI Policy, Banking News & Financial Inclusion MCQs

1.

Which ratio measures the percentage of bad loans a bank has set aside funds for?

A Cash Reserve Ratio (CRR)

B Statutory Liquidity Ratio (SLR)

C Provision Coverage Ratio (PCR)

D Capital to Risk-weighted Assets Ratio (CRAR)

2.

What does 'Credit Growth' in the banking sector signify?

A Increase in the number of bank branches

B Increase in the amount of loans disbursed by banks

C Increase in the interest rates on savings accounts

D Growth in the number of bank employees

3.

A decrease in the Gross Non-Performing Assets (GNPA) ratio of a bank primarily indicates:

A Deteriorating asset quality

B Improved asset quality

C Decrease in bank deposits

D Increase in operational costs

4.

In the context of digital payment security, what does 'Tokenization' refer to?

A Converting cash into digital coins

B Replacing actual card details with an alternative code called a 'token'

C Printing physical tokens for bank queues

D A method of physical gold storage

5.

What is the base year for the RBI's Digital Payments Index (RBI-DPI), which measures the extent of digitisation of payments?

A March 2015

B March 2018

C March 2020

D January 2016

6.

Which organization developed the Unified Payments Interface (UPI), which has seen a massive surge in transactions?

A Reserve Bank of India (RBI)

B National Payments Corporation of India (NPCI)

C NITI Aayog

D Securities and Exchange Board of India (SEBI)

7.

What is the primary objective of the RBI's Monetary Policy Committee while deciding on policy rates?

A To maximize bank profits

B To manage the fiscal deficit

C To maintain price stability while keeping in mind the objective of growth

D To regulate the stock market

8.

Who is the ex-officio Chairperson of the Monetary Policy Committee (MPC) of India?

A Finance Minister of India

B Finance Secretary

C Governor of the RBI

D Chief Economic Advisor

9.

Which of the following rates is known as the 'Policy Rate' in India, which the RBI usually keeps unchanged during a 'status quo' decision?

A Reverse Repo Rate

B Repo Rate

C Bank Rate

D Statutory Liquidity Ratio

Banking & Finance MCQs - 2026-05-03