RBI & Banking MCQs - August 2026

121.

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.

122.

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.

123.

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

A Four

B Five

C Six

D Seven

124.

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.

125.

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.

126.

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.

127.

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

128.

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

129.

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%

130.

In the context of the Digital Rupee, what does the 'Wholesale' (e-W) segment primarily facilitate?

A Retail consumer purchases at grocery stores

B Settlement of secondary market transactions in government securities

C International remittances by individuals

D Peer-to-peer lending between individuals

Banking & Finance MCQs