Banking & Finance MCQs: RBI Policy and Digital Currency 2026

1.

Which of the following is NOT a potential benefit of a surge in retail Digital Rupee (e-Rupee) transactions?

A Reduced cost of currency management for the RBI.

B Enhanced financial inclusion.

C Increased reliance on physical cash.

D Potential for more efficient and traceable transactions.

2.

A surge in retail Digital Rupee (e-Rupee) transactions by August 2026 would most likely indicate:

A Decreased adoption of digital payment methods.

B Increased public trust and accessibility of CBDCs.

C A shift away from traditional banking services.

D Reduced government spending on digital infrastructure.

3.

What is the primary characteristic of the retail Digital Rupee (e-Rupee) introduced by the RBI?

A It is a cryptocurrency like Bitcoin.

B It is a liability of the commercial banks.

C It is a legal tender and a liability of the central bank.

D It is backed by gold reserves.

4.

A stable repo rate of 6.5% in August 2026, as decided by the RBI, is generally indicative of which economic scenario?

A Aggressive monetary tightening to combat high inflation

B A balanced approach between controlling inflation and supporting economic growth

C Significant monetary easing to stimulate a struggling economy

D A focus solely on currency depreciation

5.

Which committee is responsible for deciding the repo rate in India?

A Finance Commission

B Securities and Exchange Board of India (SEBI)

C Monetary Policy Committee (MPC)

D NITI Aayog

6.

In its August 2026 Monetary Policy Committee (MPC) meeting, the Reserve Bank of India (RBI) decided to maintain the repo rate at what percentage?

A 6.25%

B 6.50%

C 6.75%

D 7.00%

Banking & Finance MCQs - 2026-08-11