Banking & Finance MCQs

The Securities and Exchange Board of India (SEBI) is the primary regulator for the securities market in India and is responsible for introducing such norms to enhance market transparency and investor protection.

Digital lending platforms leverage technology to automate processes, reducing turnaround time for loan applications, approvals, and disbursements, which is a significant advantage for time-sensitive MSME operations.

The name 'SME Saathi' itself indicates that the initiative is focused on providing services and support to Small and Medium Enterprises, which are often categorized under the broader MSME umbrella.

'SME Saathi' is designed to streamline and expedite the lending process for MSMEs through digital channels, making it easier and faster for them to access credit.

Keeping the repo rate unchanged, especially when inflation is a concern, often implies that the RBI is not actively trying to lower borrowing costs, which can lead to higher borrowing costs, reduced liquidity, and potentially slower growth.

The repo rate is the interest rate at which the Reserve Bank of India (RBI) lends money to commercial banks, typically against government securities, for short periods.

The RBI often maintains a status quo on the repo rate when inflation remains a significant concern, balancing the need for price stability with economic growth.

Green deposits are interest-bearing deposits received by regulated entities for a fixed period, the proceeds of which are allocated for green activities.

Climate-related financial risks refer to the potential financial losses that banks may face due to climate change impacts.

The framework aims to encourage banks and financial institutions to support sustainable projects and mitigate climate-related financial risks.