Banking & Finance MCQs: RBI Policy, Digital Rupee (Aug 2026)

1.

The expansion of the Digital Rupee (e-Rupee) pilot to Tier-2 cities primarily aims to achieve which of the following?

A To limit its usage only to metropolitan areas.

B To test its scalability, accessibility, and wider adoption across diverse demographics.

C To replace all existing bank accounts with digital wallets.

D To facilitate cross-border transactions exclusively.

2.

Which of the following is a key potential benefit of the Digital Rupee (e-Rupee) for the Indian economy?

A Increased reliance on physical cash transactions.

B Reduced operational costs for currency management and printing.

C Decentralization of monetary policy decisions.

D Elimination of all existing digital payment methods.

3.

What does 'e-Rupee' or 'Digital Rupee' primarily represent in the context of India's financial system?

A A new form of cryptocurrency issued by private entities.

B A Central Bank Digital Currency (CBDC) issued by the Reserve Bank of India.

C A digital payment system like UPI, but for international transactions.

D A tokenized version of gold for digital trading.

4.

If the RBI Monetary Policy Committee decides to maintain the Repo Rate, what is its likely implication for the economy?

A It signals a tightening of monetary policy, making loans more expensive.

B It indicates a loosening of monetary policy, encouraging borrowing and investment.

C It suggests that the current economic conditions (inflation and growth) are largely stable and do not warrant a change.

D It directly leads to a decrease in the Cash Reserve Ratio (CRR) for banks.

5.

What is the primary objective of the Monetary Policy Committee (MPC) in India?

A To manage government debt and fiscal deficit.

B To maintain price stability while keeping in mind the objective of growth.

C To regulate foreign exchange markets and currency valuation.

D To promote financial inclusion and banking sector reforms.

6.

How many members constitute the Monetary Policy Committee (MPC) of the Reserve Bank of India?

A Four

B Five

C Six

D Seven

Banking & Finance MCQs - 2026-08-12