Article 1: RBI Monetary Policy Report (October 2025).
1. What will be the updated GDP growth prediction of India in FY 2025-26 according to the RBI report of October 2025?
a) 6.5%
b) 6.8%
c) 7.0%
d) 6.6%
Answer: b) 6.8%
Reasoning: The RBI changed its growth forecast of the GDP upwards to 6.8 percent compared to its earlier forecast of 6.5 percent owing to positive trends in domestic growth.
2. What was one of the leading reasons given to the reduction in CPI inflation forecast to 2.6?
a) Rising global oil prices
b) A precipitous and extended decline in food prices.
c) Weakness of the Chinese Yuan.
d) Hike in policy repo rate.
Response: b) A precipitous and sustained drop in food prices.
Explanation: The report points out that the food prices fell during the 9 months and this was the longest drop in the CPI history and was one of the significant factors that led to low inflation.
Article 2: LIC and RBL Bank Bancassurance Partnership.
1. What is the main objective of LIC and RBL Bank partnership?
a) To consolidate their banking.
b) To sell insurance products of LIC to the customers of RBL Bank.
c) To develop a new online payment system.
d) To lend to LIC policyholders.
Reason: b) To provide insurance products of LIC to the clients of RBL Bank.
Mechanism: The essence of the bancassurance is that the bank (RBL) will sell the products of the insurer (LIC) to its current customers.
2. What national vision is this partnership contributing to?
a) Digital India
b) Make in India
c) Insurance for All by 2047
d) Atmanirbhar Bharat
Answer: c) Insurance for All by 2047
Purpose: The article clearly mentions that the partnership helps to achieve the national vision of Insurance for All by 2047 through increased insurance penetration.
Article 3: RBI Regulation on foreign AT1 Bonds.
1. What is the new eligibility limit of the addition of overseas Perpetual Debt Instruments (PDIs) to the AT1 capital of a bank?
a) 1.0 percent of Risk Weighted Assets (RWAs).
b) 1.5% of the Risk Weighted Assets (RWAs)
c) 2.0 percent of risk weighted assets (RWAs).
d) 2.5 percent of Risk Weighted Assets (RWAs).
Response: b) 1.5 per cent of the Risk weighted assets (RWAs).
Explanation: According to the new directions, the PDIs issued abroad may be included in AT1 capital up to 1.5% of the RWAs of the bank.
2. Another major peculiarity of AT1 Bonds that ensure insolvency security of the bank is that they can be:
a) Redeemed any time by investor.
b) Put on record or translated into equity.
c) Pay shareholder dividends.
d) Traded in any major stock exchange.
Response: b)written or translated into equity.
Explanation: AT1 bonds are black holes; when the bank capital gets to a point that it goes below a specified threshold, the AT1 bonds can be written off or changed to equity to help stabilize the bank.
Article 4: Discretion and Transparency in loan rates switches.
1. Under the new Amendment Directions, 2025 the possibility of a borrower moving to a fixed interest rate, instead of a floating interest rate is now:
a) An obligatory contribution on the part of all lenders.
b) The lender at his pleasure.
c) A right of the borrower, which is of a legal nature.
d) restricted to MSME loans.
b) As the lender pleases.
Explanation The new rule is that this switch is no longer compulsory, as it is at the discretion of the lender, depending on their Board-approved policy.
2. The spread charged by banks on top of the external benchmark may be varied in the case of MSME loans:
a) Every month
b) Every quarter
c) Every year
d) Only once every three years
Answer: d) Once every three years.
Rationale: To make the amendment transparent, the amendment stipulates that a revision of the spread (with the exception of the credit risk premium) is only allowed after every three years.
Article 5: RBI Alters Lending Regulations of Gold and Silver Collateral.
1. What is the overall ban to the banks as per the new directions?
a) lending against corporate guarantees.
b) The purchase of gold or silver by means of lending.
c) Loaning to the agriculture sector.
d) International trade lending.
Answer: b) Purchase of gold or silver by lending.
Explanation: The essence is that the banks are not allowed to lend on the buying of gold/silver or against the primary gold/silver as a security.
2. What is now expressly excepted to this prohibition?
b) Gold jewellery personal loans.
b) Jeweller working capital loans.
c) Gold as the extra security in home loans.
d) Metallized savings accounts.
Answer: b) Jeweller working capital loans.
Explanation: The amendment creates an exception to need based working capital loans to businesses that utilise gold as a raw material such as jewellers.
Article 6: RBI Draft changes in Credit Information Reporting.
1. How often is the credit information to be updated by Credit Institutions (CIs) now mandated?
a) Fortnightly
b) Monthly
c) Weekly
d) Daily
Answer: c) Weekly
Explanation: The draft amendment would require CIs to update credit information on designated days every week instead of every fortnight as they do now.
2. What portal is to be used in reporting non-compliant Credit Institutions with RBI?
a) SATHI Portal
b) FoSCoS Portal
c) DAKSH Portal
d) Bharat Kosh Portal
Answer: c) DAKSH Portal
Explanation: CICs not following timelines in reporting CIs should report on the DAKSH portal twice a year, which is a draft statement.
Article 7: Cabinet ratifies 57 new Kendriya Vidyalayas.
1. One of the main characteristics of these new KVs, according to NEP 2020, will be the presence of:
a) IB courses.
b) Balvatikas (3-year pre-primary)
c) exclusive sports academies.
d) Advanced robotics labs
Response: b) Balvatikas (3 year pre primary)
Explanation: These new KVs will include, first time, Balvatikas, a 3-year pre-primary system as required by the National Education Policy (NEP) 2020.
2. What will the number of the direct jobs created by this project be?
a) 1,617
b) 4,617
c) 10,000
d) 86,640
Answer: b) 4,617
Explanation: The project will generate between 4,617 direct jobs, plus indirect jobs in the construction industry and other related practices.
Hospice 8: CCEA Accepts Highway Project and Wildlife Corridor.
1. What is the best characteristic of the approved Kalibor-Numaligarh NH-715 project?
a) It is India's longest tunnel
b) 34.5 km high wildlife corridor.
c) It links four foreign borders.
d) It is privately-capitalized.
Response: b) A 34.5km elevated wildlife stretch.
Explanation: The project is characterized by a 34.5km elevated strip as a wildlife corridor along the areas near the Kaziranga National Park to allow safe passage by the wildlife.
2. What is the overall cost