Banking & Finance MCQs: RBI Policies and Digital Currency

1.

The Digital Rupee (e-Rupee) is a liability of which entity?

A The participating commercial banks.

B The Reserve Bank of India (RBI).

C The Ministry of Finance.

D The payment system providers.

2.

What is a key objective of expanding the Digital Rupee pilot program?

A To completely replace physical cash within the next year.

B To test the technology and design of the Central Bank Digital Currency (CBDC) in a wider set of use cases and participants.

C To reduce the transaction fees for all digital payments.

D To encourage cross-border payments using the e-Rupee.

3.

The recent expansion of the Digital Rupee (e-Rupee) pilot includes which of the following categories of participants?

A Only large commercial banks.

B Select public sector banks, private sector banks, and cooperative banks.

C Only payment system providers and fintech companies.

D All scheduled commercial banks and NBFCs.

4.

The RBI's recent focus on liquidity management for NBFCs is a part of its broader mandate to:

A Promote financial inclusion by increasing the number of NBFCs.

B Ensure the overall stability and resilience of the Indian financial system.

C Encourage foreign investment in the NBFC sector.

D Simplify the regulatory framework for all financial institutions.

5.

Which of the following is a likely consequence of RBI's tighter liquidity management for NBFCs?

A Increased availability of credit from NBFCs at lower interest rates.

B Potential reduction in lending by some NBFCs or an increase in their borrowing costs.

C A significant decrease in the profitability of the banking sector.

D Greater ease for NBFCs to access funds from the public.

6.

What is the primary objective of the RBI's recent measures to tighten liquidity management for Non-Banking Financial Companies (NBFCs)?

A To encourage NBFCs to increase their lending to the corporate sector.

B To curb excessive risk-taking and ensure financial stability within the NBFC sector.

C To reduce the interest rates offered by NBFCs to retail borrowers.

D To promote the merger of smaller NBFCs with larger ones.

Banking & Finance MCQs - 2026-06-19