Banking & Finance MCQs

RBI guidelines state that data collection by DLAs should be 'need-based' and with the prior and explicit consent of the borrower, with an option to revoke consent.

RBI mandates that all loan disbursals and repayments must be executed directly between the bank accounts of the borrower and the Regulated Entity (RE), without passing through the pool account of any third party.

While corporate health impacts financial stability, the FSR focuses on systemic risks across the financial sector, macroeconomic factors, and institutional health rather than detailed analysis of individual corporate balance sheets.

A robust banking sector is characterized by improved asset quality (lower NPAs) and strong capital adequacy (high CAR), which are key metrics highlighted in the FSR.

The Financial Stability Review (FSR) is a half-yearly publication of the Reserve Bank of India (RBI) that assesses the stability of the Indian financial system.

The RBI's balance sheet, presented in its Annual Report, provides a detailed account of its own assets and liabilities, reflecting its financial position and operations.

The RBI Annual Report provides a comprehensive review of the Indian economy, including monetary policy operations, inflation, growth, and financial sector developments.

The RBI's accounting year runs from April 1 to March 31. Therefore, the Annual Report 2023-24 covers this specific financial year.

Greenwashing is a deceptive practice where a company or entity overstates or misrepresents the environmental benefits of its products, services, or investments, including green bonds, to appear more environmentally responsible than it actually is.

The new norms are designed to ensure that issuers provide clear and comprehensive information about the environmental objectives and impact of their green bonds, thereby increasing transparency and mitigating the risk of 'greenwashing' (misleading claims about environmental benefits).