Banking & Finance MCQs - 2026-07-27

Despite advancements, significant portions of the rural population may still face challenges with internet access and understanding digital platforms, which are critical barriers to the effective adoption of digital banking services.

Blockchain technology offers the potential for secure, transparent, and cost-effective transactions, which are vital for expanding financial services to a wider population, especially in areas with limited traditional infrastructure.

Digital banking initiatives are crucial for reaching remote and underserved populations, offering them access to essential financial services like savings, credit, and insurance, thereby boosting financial inclusion.

Open Market Operations (OMOs), which involve the buying and selling of government securities, are a primary tool used by the RBI to inject or absorb liquidity from the banking system, thereby influencing interest rates and inflation.

Keeping the policy repo rate unchanged allows the MPC to observe the cumulative impact of past policy actions on inflation and growth, and to assess the evolving economic landscape before making further adjustments.

The RBI's mandate is to maintain price stability while keeping in mind the objective of growth. The inflation target is typically set at 4% with a tolerance band of +/- 2%.