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Banking & Finance MCQs - 2026-04-02

11.
The RBI's revised securitisation framework aims to invigorate the market by:
A Reducing the number of participating originators
B Increasing the supply of securitised assets and improving market liquidity
C Limiting the types of securitised assets
D Discouraging banks from freeing up capital
12.
What is expected to improve for investors due to the enhanced disclosure requirements in the new framework?
A Reduced access to information
B Greater transparency and confidence
C Increased complexity in understanding instruments
D Limited investment options
13.
The revised framework introduces a more flexible approach to which criterion, making it easier for originators to transfer assets?
A Capital Adequacy Ratio (CAR)
B 'True Sale' criteria
C Reserve Requirement Ratio (RRR)
D Liquidity Coverage Ratio (LCR)
14.
Which of the following is a key change introduced in the revised framework regarding Minimum Holding Period (MHP)?
A Increase in MHP for all standard assets
B Reduction in MHP for certain types of standard assets
C Elimination of MHP altogether
D MHP made optional for originators
15.
What is the primary objective of the RBI's new framework for securitisation of standard assets?
A To restrict the flow of credit
B To simplify the process, enhance market liquidity, and promote responsible practices
C To increase the cost of borrowing for banks
D To discourage the transfer of credit risk
16.
The strengthening of the SGB framework is expected to:
A Discourage investment in green initiatives
B Increase borrowing costs for green projects
C Boost investor confidence and potentially lower borrowing costs for green projects
D Reduce India's commitment to climate action
17.
What is a key enhancement in the reporting requirements for India's SGBs?
A Reduced transparency on fund utilization
B Focus on financial returns only
C More granular data on environmental benefits achieved
D Exclusion of third-party verification reports
18.
The updated SGB framework requires projects to align with which international goals?
A World Trade Organization (WTO) agreements
B International Monetary Fund (IMF) lending targets
C UN Sustainable Development Goals (SDGs)
D Paris Agreement on Climate Change (specific targets)
19.
Which of the following is a new eligible green project category added to India's SGB framework?
A Fossil fuel exploration
B Sustainable water management
C Traditional manufacturing industries
D Urban sprawl development
20.
What is the primary purpose of Sovereign Green Bonds (SGBs)?
A To finance defense projects
B To raise capital for projects with positive environmental and climate benefits
C To fund infrastructure development without environmental considerations
D To manage foreign exchange reserves