Banking & Finance MCQs - May 2026 Current Affairs

21.

The Reserve Bank of India (RBI) recently enhanced the digital payment security framework. Which of the following is a key objective of these enhancements?

A To reduce the number of digital transactions.

B To strengthen security measures against evolving cyber threats and protect customer interests.

C To increase the transaction limits for all digital payments.

D To mandate the use of only physical payment methods.

22.

The improved financial health of Public Sector Banks is a result of which of the following combined efforts?

A Government recapitalization and improved risk management by banks.

B Increased lending to risky sectors and reduced regulatory oversight.

C Focus on non-performing assets only, neglecting profitability.

D Reduced competition from private banks and fintech companies.

23.

Besides the reduction in NPAs, what other factor contributes to the robust financial health of Public Sector Banks?

A Decreasing deposit growth.

B Increased provisioning coverage ratio.

C Reduced profitability.

D Lower capital infusion from the government.

24.

Which key financial indicator has shown significant improvement for Public Sector Banks (PSBs) in recent times, reflecting their robust health?

A Net Interest Margin (NIM)

B Gross Non-Performing Assets (GNPAs)

C Return on Assets (RoA)

D Capital Adequacy Ratio (CAR)

25.

What is the primary reason for the significant increase in the RBI's surplus transfer in recent years?

A Increased dividend income from public sector banks.

B Higher interest earnings on foreign currency assets.

C Improved performance of RBI's own investments and asset revaluation.

D Reduced operational expenses of the RBI.

26.

Which committee's recommendations are generally followed for determining the surplus transfer from RBI to the government?

A Narasimham Committee

B Bimal Jalan Committee

C P. J. Nayak Committee

D Y. V. Reddy Committee

27.

What is the record amount of surplus that the Reserve Bank of India (RBI) has approved to be transferred to the Central Government for the fiscal year 2023-24?

A ₹1.20 lakh crore

B ₹1.50 lakh crore

C ₹1.75 lakh crore

D ₹2.10 lakh crore

28.

Which of the following is typically a trigger for the RBI to impose corrective actions under the PCA framework on a UCB?

A Consistent profitability over several quarters.

B A significant decline in asset quality (increase in NPAs).

C Excessive capital adequacy ratio.

D Low levels of liquidity.

29.

What is the primary objective of the PCA framework for UCBs?

A To encourage aggressive expansion of UCBs.

B To monitor and address financial vulnerabilities of UCBs before they become critical.

C To reduce the regulatory burden on UCBs.

D To facilitate mergers and acquisitions of UCBs.

30.

The Reserve Bank of India (RBI) recently conducted a strategic review of the Prompt Corrective Action (PCA) framework for which category of banks?

A Commercial Banks

B Regional Rural Banks (RRBs)

C Urban Co-operative Banks (UCBs)

D Small Finance Banks (SFBs)