Which of the following is a key challenge identified by the RBI in the widespread adoption of the retail Digital Rupee (e-₹R) during its pilot phase?
A Low user awareness and limited merchant acceptance.
B Lack of underlying blockchain technology.
C Absence of a legal framework for CBDC.
D High transaction costs for users.
Answer: A
While the RBI has made progress, challenges in the widespread adoption of e-₹R include low user awareness, limited merchant acceptance, and the need for seamless integration into existing payment ecosystems. The legal framework is being developed, and transaction costs are generally aimed to be low.
162.
When did the Reserve Bank of India (RBI) launch the pilot projects for the Digital Rupee (e-₹) for wholesale and retail segments, respectively?
A Wholesale: November 2022; Retail: December 2022
B Wholesale: January 2023; Retail: February 2023
C Wholesale: October 2021; Retail: November 2021
D Wholesale: March 2023; Retail: April 2023
Answer: A
The RBI launched the pilot for the wholesale segment of the Digital Rupee (e-₹W) on November 1, 2022, and for the retail segment (e-₹R) on December 1, 2022. These pilots are ongoing and their progress is being reviewed.
163.
As of 2026, what is the inflation target set by the Government of India for the Reserve Bank of India, which the MPC aims to achieve?
A 4% with a tolerance band of +/- 2%.
B 6% with a tolerance band of +/- 1%.
C 2% with no tolerance band.
D 5% with a tolerance band of +/- 0.5%.
Answer: A
The Government of India, in consultation with the RBI, has set a retail inflation target of 4% with a tolerance band of +/- 2% for the period from April 1, 2021, to March 31, 2026. This target is expected to be reviewed and potentially renewed or revised for the subsequent period, but as of 2026, this is the established target.
164.
Which of the following is a primary instrument used by the RBI to manage short-term liquidity in the banking system and influence interest rates?
A Repo Rate
B Fiscal Policy
C Government Spending
D Taxation Policy
Answer: A
The Repo Rate is the interest rate at which the RBI provides short-term loans to commercial banks. It is a key monetary policy tool used to manage liquidity and influence interest rates in the economy. Fiscal policy, government spending, and taxation policy are instruments of the government's fiscal policy, not RBI's monetary policy.
165.
What is the primary objective of the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) as per its statutory mandate?
A Maintaining price stability while keeping in mind the objective of growth.
B Maximizing economic growth at any cost.
C Ensuring full employment in the economy.
D Managing the government's fiscal deficit.
Answer: A
The primary objective of the Monetary Policy Committee (MPC) of the RBI is to maintain price stability while keeping in mind the objective of growth. This is enshrined in the RBI Act, 1934.
166.
Which entities are primarily covered under the RBI's digital lending guidelines?
A Only Non-Banking Financial Companies (NBFCs)
B Only Public Sector Banks
C All Regulated Entities (REs) including Banks and NBFCs
D Only private fintech startups
Answer: C
The guidelines apply to all Regulated Entities (REs), which include commercial banks, cooperative banks, and NBFCs, including those operating through digital lending apps.
167.
What is the main purpose of the RBI's stricter norms for digital lending?
A To promote the use of cryptocurrency
B To protect customers from unethical recovery practices and data privacy issues
C To increase the number of digital lending apps in India
D To reduce the tax burden on fintech companies
Answer: B
The norms were introduced to address concerns regarding data privacy, unethical recovery practices, and the lack of transparency in digital lending.
168.
Under the new RBI digital lending guidelines, who is responsible for the repayment of loans?
A The Digital Lending App (DLA)
B The borrower directly to the Regulated Entity (RE)
C The payment gateway provider
D The third-party collection agency
Answer: B
RBI guidelines mandate that all loan disbursals and repayments must be executed only between the bank accounts of the borrower and the Regulated Entity (RE).
169.
What happens when the RBI keeps the Repo Rate unchanged?
A Banks immediately increase interest rates on all loans
B The cost of borrowing for commercial banks from RBI remains the same
C The Cash Reserve Ratio (CRR) automatically decreases
D Foreign Direct Investment (FDI) is banned
Answer: B
Repo rate is the rate at which the central bank lends money to commercial banks. If it remains unchanged, the cost of borrowing for banks from RBI remains stable.
170.
What is the primary objective of the RBI in maintaining the Repo Rate?
A To increase government spending
B To maintain price stability while keeping growth in mind
C To fix the exchange rate of the Rupee
D To regulate stock market volatility
Answer: B
The primary objective of the RBI's monetary policy is to maintain price stability while keeping in mind the objective of growth.
