What is a key reason for SEBI proposing stricter regulations for Alternative Investment Funds (AIFs)?
A To reduce the overall capital available for startups.
B To enhance investor protection and transparency in AIF operations.
C To encourage unregulated foreign investments into AIFs.
D To simplify the registration process for new AIFs.
Answer: B
SEBI's proposals for stricter AIF regulations are primarily aimed at safeguarding investor interests, improving governance, and increasing transparency in the operations of these funds.
142.
As per the enhanced framework, what is a mandatory requirement for all digital lending apps (DLAs) operating in India?
A They must be registered as a Non-Banking Financial Company (NBFC).
B They must have a physical office in every state of operation.
C They must disclose the Annual Percentage Rate (APR) to the borrower upfront.
D They must offer only collateralized loans.
Answer: C
A key requirement of the RBI's digital lending guidelines is the mandatory disclosure of the Annual Percentage Rate (APR) to the borrower upfront, ensuring transparency in the cost of the loan.
143.
Under the RBI's digital lending guidelines, which entity is primarily responsible for the recovery of loans disbursed through a Digital Lending App (DLA)?
A The Digital Lending App (DLA) itself.
B The Lending Service Provider (LSP) associated with the DLA.
C The Regulated Entity (RE) on whose balance sheet the loan is booked.
D Any third-party collection agent appointed by the DLA.
Answer: C
The Regulated Entity (RE), such as a bank or NBFC, on whose balance sheet the loan is booked, bears the ultimate responsibility for all aspects of the loan, including recovery, even if Lending Service Providers (LSPs) are involved.
144.
What is the primary objective of the RBI's enhanced digital lending framework?
A To promote unregulated growth of FinTech companies.
B To ensure fair lending practices and consumer protection.
C To restrict access to digital credit for small borrowers.
D To allow unregulated cross-border digital lending.
Answer: B
The primary objective of the RBI's digital lending framework is to protect borrowers from unfair practices, enhance transparency, and ensure the orderly growth of the digital lending ecosystem.
145.
The Index of Industrial Production (IIP) measures the growth rates of different industry groups. Which of the following sectors holds the highest weightage in the IIP calculation in India?
A Mining
B Electricity
C Manufacturing
D Construction
Answer: C
In the Index of Industrial Production (IIP), the manufacturing sector holds the highest weightage, followed by mining and electricity. This reflects its significant contribution to the overall industrial output of the country.
146.
Robust growth in India's industrial production, as observed in Q1 FY27, typically indicates which of the following for the economy?
A A slowdown in manufacturing and mining activities.
B Increased demand, investment, and job creation in the industrial sector.
C A decline in exports due to reduced production capacity.
D Higher inflation due to supply-side constraints.
Answer: B
Robust growth in industrial production signifies increased activity across manufacturing, mining, and electricity sectors. This typically translates to higher demand for goods, increased investment in production capacities, and consequently, more job opportunities within the industrial sector, contributing positively to overall economic growth.
147.
India's industrial production is primarily measured by the Index of Industrial Production (IIP). Which government agency is responsible for compiling and releasing the IIP data?
A Reserve Bank of India (RBI)
B Ministry of Finance
C National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI)
D NITI Aayog
Answer: C
The Index of Industrial Production (IIP) is compiled and released monthly by the National Statistical Office (NSO), under the Ministry of Statistics and Programme Implementation (MoSPI).
148.
If the RBI maintains the repo rate when inflation is high, what is the likely impact on the overall credit availability and borrowing costs in the economy?
A Credit availability will increase, and borrowing costs will decrease.
B Credit availability will decrease, and borrowing costs will increase.
C Credit availability and borrowing costs will largely remain stable, discouraging new borrowing.
D Credit availability will remain stable, but borrowing costs will significantly decrease.
Answer: C
Maintaining the repo rate, especially when inflation is a concern, means the RBI is not easing its monetary stance. This typically leads to stable, rather than decreasing, borrowing costs for banks and, consequently, for consumers and businesses. This stability, particularly if rates are already elevated, tends to discourage new borrowing and investment, helping to curb aggregate demand and inflationary pressures.
149.
The repo rate is a key instrument in the Reserve Bank of India's monetary policy. What does the term 'repo rate' primarily refer to?
A The rate at which commercial banks can deposit surplus funds with the RBI.
B The rate at which the RBI lends money to commercial banks against government securities.
C The interest rate charged by commercial banks on long-term loans to customers.
D The rate at which the government borrows from the public.
Answer: B
The repo rate is the interest rate at which the Reserve Bank of India lends money to commercial banks in exchange for government securities. It is a crucial tool for controlling the money supply and influencing interest rates in the economy.
150.
In its recent monetary policy review in 2026, the Reserve Bank of India (RBI) decided to maintain the repo rate. What is the primary objective behind such a decision when inflation concerns persist?
A To support economic growth by encouraging borrowing.
B To control inflation by signaling a tight monetary stance.
C To increase government revenue through higher interest earnings.
D To boost exports by making domestic currency cheaper.
Answer: B
Maintaining the repo rate amidst inflation concerns signals that the RBI is prioritizing inflation control. It aims to keep borrowing costs stable, thereby moderating demand and inflationary pressures, rather than stimulating further growth which could exacerbate inflation.
