Banking & Finance MCQs

The MPC consists of six members: three from the RBI and three appointed by the Central Government.

The primary objective of monetary policy is to maintain price stability while keeping in mind the objective of growth.

The Monetary Policy Committee (MPC) is a statutory body under the RBI Act, 1934, responsible for fixing the benchmark interest rate.

The guidelines apply to all Regulated Entities (banks and NBFCs) and the Lending Service Providers (LSPs) they engage with.

The KFS is a standardized document that discloses the Annual Percentage Rate (APR) and other charges to ensure transparency for the borrower.

RBI guidelines mandate that loan disbursals and repayments must be executed directly between the bank accounts of the borrower and the Regulated Entity (RE).

An unchanged repo rate means the cost at which banks borrow from the RBI remains the same, keeping lending rates stable.

The RBI maintains the repo rate to balance price stability (inflation control) with the need for economic growth.

The Monetary Policy Committee (MPC) is a statutory body under the RBI Act, 1934, responsible for fixing the benchmark interest rate in India.

The Digital Rupee is India's Central Bank Digital Currency (CBDC), issued and backed by the Reserve Bank of India.