Banking & Finance MCQs

The primary mandate of the RBI's monetary policy is to ensure price stability while keeping in mind the objective of growth. Maintaining the repo rate at 6.5% reflects a balance between these two objectives.

The Monetary Policy Committee (MPC) is mandated by the Reserve Bank of India Act, 1934, to determine the policy repo rate required to meet the inflation target.

In its October 2026 policy review, the Reserve Bank of India's Monetary Policy Committee decided to keep the policy repo rate unchanged at 6.5%.

The guidelines mandate that all loan disbursals and repayments must be routed through a bank account maintained by the regulated entity (RE) or its outsourced agent, ensuring transparency and auditability.

The guidelines explicitly prohibit digital lending platforms from levying upfront margin calls or margin requirements on borrowers, aiming to prevent predatory lending practices.

The new guidelines place the primary responsibility for compliance with all applicable laws and regulations on the digital lending platform itself, including ensuring fair practices and data privacy.

The RBI's mandate includes not only price stability but also ensuring the stability of the financial system. The October 2026 review reiterated this dual focus.

The RBI's October 2026 review projected a GDP growth rate of 7.0% for the fiscal year 2026-27, citing robust domestic demand and improved global economic conditions.

The Monetary Policy Committee (MPC) in its October 2026 review maintained the repo rate at 6.50%. This decision was based on an assessment of the macroeconomic situation and inflation outlook.