MCQs on Banking & Finance: RBI, Digital Rupee, Green Finance

1.

What is a key objective of the Green Finance Framework for Indian Banks?

A To increase non-performing assets (NPAs)

B To facilitate the transition to a low-carbon economy

C To restrict international investments

D To promote traditional, non-green industries

2.

The Green Finance Framework released by IBA is intended to:

A Discourage lending to green projects

B Promote sustainable and environmentally friendly lending practices

C Increase the cost of borrowing for all businesses

D Focus solely on renewable energy sector financing

3.

Who has released a comprehensive Green Finance Framework for Indian Banks?

A Reserve Bank of India (RBI)

B Indian Banks' Association (IBA)

C Ministry of Finance

D Securities and Exchange Board of India (SEBI)

4.

Which type of Digital Rupee is currently being piloted by the RBI, allowing for UPI interoperability?

A Wholesale CBDC (wCBDC)

B Retail CBDC (rCBDC)

C Tokenised CBDC

D All of the above

5.

The expansion of the Digital Rupee pilot with UPI interoperability aims to:

A Reduce the use of physical cash entirely

B Increase the complexity of digital payments

C Enhance convenience and accessibility of CBDC

D Limit the number of participating banks

6.

What significant enhancement has been introduced in the expanded pilot of the RBI's Digital Rupee (e-Rupee)?

A Introduction of physical e-Rupee coins

B Interoperability with the Unified Payments Interface (UPI)

C Mandatory use for all government transactions

D Issuance of e-Rupee backed by gold reserves

7.

The RBI's decision to maintain the repo rate is often influenced by factors such as inflation, economic growth, and:

A International trade agreements

B Global economic and financial uncertainties

C Domestic political stability

D Commodity prices only

8.

Which committee is responsible for deciding the repo rate in India?

A Securities and Exchange Board of India (SEBI) Board

B Monetary Policy Committee (MPC)

C Financial Stability and Development Council (FSDC)

D Reserve Bank of India (RBI) Board

9.

What is the current repo rate maintained by the Reserve Bank of India (RBI) as of the latest Monetary Policy Committee meeting?

A 6.25%

B 6.50%

C 6.75%

D 7.00%

Banking & Finance MCQs - 2026-06-11