1.
Which institution introduced the Risk-Based Premium (RBP) framework for deposit insurance in India?
A. SEBI
B. NABARD
C. DICGC
D. SIDBI
Answer: C. DICGC
Explanation:
The Deposit Insurance and Credit Guarantee Corporation (DICGC), with RBI approval, introduced the Risk-Based Premium system so that banks pay insurance premiums according to their risk profile, strengthening depositor protection and incentivising prudent banking practices.
2.
The Risk-Based Premium framework primarily aims to:
A. Reduce deposit insurance coverage
B. Introduce uniform premium rates
C. Align premiums with bank risk levels
D. Eliminate deposit insurance
Answer: C. Align premiums with bank risk levels
Explanation:
Under RBP, higher-risk banks pay higher premiums, creating incentives for improved risk management and strengthening the stability of the banking system.
3.
RBI’s draft rules on credit derivatives and Total Return Swaps (TRS) are intended to:
A. Replace corporate bonds
B. Deepen the corporate bond market
C. Restrict foreign investment
D. Eliminate credit risk
Answer: B. Deepen the corporate bond market
Explanation:
The draft framework enables hedging of credit risk through derivatives, improving liquidity and development of India’s corporate debt market.
4.
The RBI has proposed exempting NBFCs with assets below what threshold from mandatory registration?
A. ₹500 crore
B. ₹750 crore
C. ₹1,000 crore
D. ₹2,000 crore
Answer: C. ₹1,000 crore
Explanation:
Small NBFCs with assets below ₹1,000 crore are considered low systemic risk, allowing the RBI to focus regulatory oversight on larger institutions.
5.
The 59th Monetary Policy Committee meeting (Feb 2026) was chaired by:
A. Shaktikanta Das
B. Sanjay Malhotra
C. Urjit Patel
D. Raghuram Rajan
Answer: B. Sanjay Malhotra
Explanation:
The February 2026 MPC meeting, the sixth bi-monthly policy of FY 2025-26, was conducted under RBI Governor Sanjay Malhotra.
6.
RBI imposed a monetary penalty of ₹1 lakh on which entity for regulatory non-compliance?
A. HDFC Securities
B. Vinayaka Capsec Pvt Ltd
C. Bajaj Finance
D. IIFCL
Answer: B. Vinayaka Capsec Pvt Ltd
Explanation:
The penalty demonstrates RBI’s supervisory enforcement to ensure adherence to regulatory standards.
7.
Measures announced for Urban Co-operative Banks (UCBs) focus on:
A. Privatization
B. Closure of weak banks
C. Credit expansion, efficiency, and governance
D. Conversion into NBFCs
Answer: C. Credit expansion, efficiency, and governance
Explanation:
RBI’s initiatives aim to strengthen cooperative banking through improved operations and institutional capacity.
8.
Which bank became the first custodian in India to issue an FPI licence via complete e-signature onboarding?
A. ICICI Bank
B. SBI
C. Kotak Mahindra Bank
D. Axis Bank
Answer: C. Kotak Mahindra Bank
Explanation:
The move reflects digitisation of capital market processes and faster investor onboarding.
9.
HDFC Life partnered with which NBFC to expand insurance distribution?
A. Bajaj Finserv
B. Muthoot FinCorp
C. L&T Finance
D. Mahindra Finance
Answer: B. Muthoot FinCorp
Explanation:
The partnership aims to increase insurance penetration through NBFC distribution channels.
10.
The Offshore Areas Mineral Rules, 2026 were notified by:
A. Ministry of Steel
B. Ministry of Mines
C. Ministry of Environment
D. Ministry of Power
Answer: B. Ministry of Mines
Explanation:
These rules regulate illegal extraction, storage, and transport of offshore minerals to strengthen mineral governance.
11.
Which port became the first in India to initiate installation of an advanced anti-drone system?
A. Mumbai Port
B. Paradip Port
C. V.O. Chidambaranar Port
D. Kandla Port
Answer: C. V.O. Chidambaranar Port
Explanation:
The system enhances security of critical maritime infrastructure against drone threats.
12.
India and the USA agreed on a framework for an Interim Trade Agreement as a step toward:
A. Regional Comprehensive Economic Partnership
B. Bilateral Trade Agreement
C. SAFTA
D. WTO Reform
Answer: B. Bilateral Trade Agreement
Explanation:
The ITA framework is an intermediate step to negotiate a comprehensive India–USA BTA.
13.
Who was appointed Managing Director of IIFCL?
A. Tuhin Kanta Pandey
B. Rohit Rishi
C. Ashwini Vaishnaw
D. Rajiv Kumar
Answer: B. Rohit Rishi
Explanation:
His appointment is relevant to governance in infrastructure financing institutions.
14.
The proposed merger between PFC and REC aims to:
A. Reduce infrastructure financing
B. Improve capital efficiency and scale
C. Privatise both institutions
D. Merge with RBI
Answer: B. Improve capital efficiency and scale
Explanation:
The merger aligns with restructuring of PSU NBFCs to enhance financing capability.
15.
‘IITM–Unicorn Frontier Fund I’ is primarily intended to support:
A. Agriculture startups
B. Deep-technology