What is a key factor contributing to the surge in digital payments during the festive season in India, as observed in 2026?
A Increased availability of cash at ATMs.
B Promotional offers and discounts by payment providers and merchants.
C A decline in internet penetration.
D Reduced government initiatives promoting digital transactions.
Answer: B
Merchants and payment platforms often roll out attractive discounts, cashback offers, and loyalty programs during the festive season to encourage digital transactions, driving the surge.
72.
During the festive season of 2026, which category of digital payments witnessed the most significant surge in transaction volume and value in India?
A NEFT (National Electronic Funds Transfer) transfers.
B UPI (Unified Payments Interface) transactions.
C RTGS (Real-Time Gross Settlement) transfers.
D Demand Drafts and Cheques.
Answer: B
UPI has consistently shown robust growth and is the dominant platform for retail digital payments in India, experiencing a significant surge during festive periods due to its ease of use and widespread adoption.
73.
In the context of RBI's cautious inflation stance in 2026, what does 'upside risks to food prices' generally refer to?
A A decrease in agricultural production due to favorable weather conditions.
B Potential for food inflation to rise above projected levels due to factors like erratic monsoons or supply chain disruptions.
C Government subsidies leading to lower food prices.
D Increased global supply of food grains.
Answer: B
'Upside risks to food prices' implies that factors such as adverse weather patterns, pest attacks, or logistical issues could lead to higher-than-expected food inflation.
74.
Which monetary policy tool is most frequently used by the RBI to manage liquidity and influence inflation expectations, aligning with its cautious stance?
A Open Market Operations (OMOs).
B Cash Reserve Ratio (CRR).
C Statutory Liquidity Ratio (SLR).
D Repo Rate.
Answer: D
The Repo Rate is the primary tool used by the RBI to manage liquidity and signal its monetary policy stance. Adjustments to the repo rate directly influence borrowing costs and inflation expectations.
75.
As of late 2026, what is the primary reason cited by the Reserve Bank of India (RBI) for maintaining a cautious stance on inflation, despite potential growth pressures?
A Persistent core inflation and upside risks to food prices.
B A sharp decline in global commodity prices.
C The need to stimulate export growth through lower interest rates.
D Anticipation of a significant slowdown in the services sector.
Answer: A
The RBI's cautious stance in late 2026 is primarily driven by concerns over persistent core inflation and potential upward pressures on food prices, which could derail disinflation efforts.
76.
The expansion of the PLI scheme is expected to significantly contribute to which of the following aspects of India's economy?
A Decreased foreign direct investment (FDI) due to protectionist policies.
B Increased reliance on imported goods for critical sectors.
C Enhanced job creation, technological upgradation, and global competitiveness of Indian industries.
D Reduced government revenue due to widespread tax exemptions.
Answer: C
The PLI scheme's expansion is aimed at attracting significant investments, leading to increased production capacity, technological advancements, and the creation of numerous jobs across various manufacturing sectors. This, in turn, enhances India's global competitiveness and reduces import dependence.
77.
Which of the following statements accurately describes the operational mechanism of the PLI scheme?
A It provides upfront capital grants to companies for setting up new manufacturing units.
B It offers incentives as a percentage of incremental sales over a base year for products manufactured in India.
C It mandates government ownership in companies receiving incentives.
D It focuses exclusively on the service sector to boost employment.
Answer: B
The PLI scheme provides incentives to companies based on their incremental sales of manufactured products over a base year. This performance-linked approach encourages companies to increase production and sales, thereby boosting domestic manufacturing. The scheme covers various sectors, including electronics, automobiles, pharmaceuticals, and textiles.
78.
What is the primary objective of the Production Linked Incentive (PLI) scheme launched by the Government of India?
A To provide direct financial assistance to small and medium enterprises (SMEs) for working capital.
B To boost domestic manufacturing, enhance exports, and reduce import dependence in key sectors.
C To offer subsidies for agricultural produce to ensure food security.
D To fund research and development in space technology exclusively.
Answer: B
The Production Linked Incentive (PLI) scheme is designed to incentivize domestic manufacturing in strategic sectors, attract investments, create jobs, reduce reliance on imports, and make Indian manufacturers globally competitive.
79.
Which of the following statements is TRUE regarding the responsibilities of Regulated Entities (REs) and Lending Service Providers (LSPs) under RBI's digital lending framework?
A LSPs are solely responsible for grievance redressal related to digital loans.
B REs must ensure that LSPs comply with data privacy and security standards.
C LSPs are permitted to store all borrower data indefinitely without consent.
D REs can disburse loans through LSPs' bank accounts to speed up the process.
Answer: B
The RBI guidelines clearly state that Regulated Entities (REs) are ultimately responsible for the actions of their Lending Service Providers (LSPs). This includes ensuring that LSPs adhere to all data privacy and security standards, and that a robust grievance redressal mechanism is in place, with a nodal officer appointed by the RE.
80.
According to the RBI's tightened norms for digital lending, what is the primary purpose of the mandatory 'Key Fact Statement' (KFS) that must be provided to borrowers?
A To serve as a marketing brochure for other financial products.
B To provide a summary of the loan agreement, including all costs and terms, before execution.
C To act as a legal waiver for the lender in case of default.
D To track the borrower's digital footprint for credit scoring.
Answer: B
The Key Fact Statement (KFS) is a crucial requirement under RBI's digital lending guidelines. It aims to enhance transparency by providing borrowers with a clear and concise summary of the loan terms, including the Annual Percentage Rate (APR), all fees, charges, and other relevant information, before they commit to the loan.
