Banking & Finance MCQs

The government typically infuses capital by subscribing to rights issues, preferential allotments, or by directly purchasing shares/bonds issued by the banks, thereby increasing the bank's equity base.

Capital infusion helps PSBs meet regulatory capital requirements (like Basel norms), absorb potential losses, and increase their capacity to lend, thereby supporting economic activity and growth.

Protecting sensitive borrower data from misuse and ensuring its security is a critical component of the RBI's regulatory framework for digital lending.

Transparency in charges is a cornerstone of the new guidelines. Borrowers must be clearly informed about all costs associated with their loan before they agree to it.

The RBI's new guidelines aim to bring more order and consumer protection to the digital lending space, focusing on fairness, transparency, and data privacy for borrowers.

Global headwinds are external factors like inflation in other countries, geopolitical tensions, or supply chain disruptions that can negatively affect a country's economy, prompting caution from the central bank.

Maintaining the repo rate suggests that the RBI is not actively trying to make borrowing cheaper or more expensive in the immediate term, leading to relative stability in interest rates.

The Repo Rate is the rate at which the RBI lends money to commercial banks. By maintaining it, the RBI signals its stance on monetary policy, aiming to balance inflation control with economic growth.

The pilot utilizes the Unified Payments Interface (UPI) infrastructure, which is India's real-time payment system, to facilitate international money transfers.

The initial phase of UPI's cross-border remittance pilot includes countries within the Gulf Cooperation Council (GCC), a significant region for remittances from India.