Banking & Finance MCQs

Expanding e-Rupee for merchant transactions aims to reduce intermediaries, lower transaction costs, and enhance the efficiency of digital payments.

The RBI has expanded the pilot of the Digital Rupee (e-Rupee) to include merchant transactions, making it available for retail use.

The RBI's primary mandate is to maintain price stability while keeping in mind the objective of growth. Keeping the repo rate steady helps in managing inflation.

The Monetary Policy Committee (MPC) is responsible for setting the policy repo rate in India.

The Reserve Bank of India's Monetary Policy Committee (MPC) decided to keep the policy repo rate unchanged at 6.5% in its June 2026 review.

Monetary Policy, primarily through tools like the Repo Rate, Reverse Repo Rate, and Cash Reserve Ratio, is the RBI's main instrument to manage liquidity and interest rates.

The MPC often maintains a status quo to assess the impact of previous policy actions, manage inflation expectations, and support economic growth without jeopardizing price stability.

The RBI's MPC decided to maintain the status quo on the Repo Rate, keeping it unchanged at its existing level.

The RBI framework prohibits automatic increases in credit limits without the explicit consent of the borrower. Other options are either mandated or permitted practices.

The new guidelines mandate that loan disbursement and collection must be executed directly by the Regulated Entities (REs) to and from the borrower's bank account, without any pass-through involvement of Lending Service Providers (LSPs).