MCQs on Rbi, Banking and Economy dec 2025

Explanation: The number of fraud cases decreased to 23,879 in 2024-25 (from 36,052), while the amount involved increased significantly to ₹34,771 crore.

Explanation: Public Sector Banks (PSBs) accounted for 70.7% of the amount involved in frauds, mostly related to advances.

Explanation: Card/Internet frauds accounted for 66.8% of the total frauds by the number of cases during the first half of 2025-26.

Explanation: Digital payments grew by 17.9% in value terms during 2024-25, representing an overwhelming 97.6% of India’s total payments.

Explanation: NRI deposit inflows moderated to $8.3 billion during April-October FY26, down from $11.9 billion in the same period the previous year.

Explanation: The RBI scheduled a USD/INR Buy/Sell swap auction for $10 billion with a tenor of three years on January 13, 2026.

Explanation: Retail CBDC (Central Bank Digital Currency) transactions have crossed 120 million in volume and ₹28,000 crore in value.

Explanation: Public Sector Banks (PSBs) are required to recruit Local Bank Officers (LBOs) fluent in regional languages to enhance customer service.

Explanation: The RBI retained only SBI, HDFC Bank, and ICICI Bank as Domestic Systemically Important Banks (D-SIBs).

Explanation: SBI must maintain an additional capital buffer of 0.80% of its risk-weighted assets, while HDFC Bank needs 0.40% and ICICI Bank 0.20%.

Explanation: The existing system, introduced in 1962, charges a flat premium of 12 paise per ₹100 of assessable deposits.

Explanation: The maximum deposit insurance coverage is ₹5 lakh per depositor, covering savings, fixed, current, and recurring deposits.

Explanation: India and the Netherlands established the India-Netherlands Joint Trade and Investment Committee (JTIC) to boost bilateral trade and investment.

Explanation: The Asian Development Bank (ADB) committed $4.26 billion in sovereign lending to India in 2025 for 16 projects.

Explanation: The trade agreement with the EAEU will exclude services and investment, focusing mainly on tariff reduction in goods.

Explanation: Merchandise imports declined mainly due to a sharp fall in gold imports (down nearly 60% YoY), easing pressure on the trade balance.

Explanation: The Central Government approved a ₹476.03 crore scheme to promote Makhana development across the value chain.

Explanation: The RBI approved an aggregate holding of up to 9.5% in IndusInd Bank by HDFC Bank and its group entities.

Explanation: Sahakar Sarathi is a Shared Service Entity registered to modernise Rural Cooperative Banks (RCBs) by providing technology-driven banking services.

Explanation: India and Oman will sign an FTA, offering major opportunities and acting as a gateway to the GCC and Africa.

Explanation: The central government is likely to target a debt-to-GDP ratio of 54.5-55% in FY27, down from 56.1% in FY26.

Explanation: Under the FTA, New Zealand has committed $20 billion in FDI over 15 years, and India will set up an oversight committee to monitor this.

Explanation: IIP growth surged to a 25-month high of 6.7% in November 2025, led by manufacturing and capital goods.

Explanation: India’s real GDP grew 8.2% in Q2 FY 2025-26, up from 7.8% in Q1.

Explanation: India’s GDP has reached $4.18 trillion, surpassing Japan to become the world’s 4th-largest economy.

Explanation: The unemployment rate dropped to 4.7% in November 2025, down from 5.2% in October, the lowest since April 2025.

Explanation: Gold, wilful default, narcotics, and smuggling cases will be explicitly excluded from the Customs Amnesty Scheme.

Explanation: The new national accounts will incorporate double deflation methods to improve accuracy by separately deflating gross output and intermediate inputs.

Explanation: Net FDI into India nearly doubled to $6.2 billion during April-October FY26, compared to $3.3 billion a year earlier.

Explanation: Singapore was the largest FDI source with $11.94 billion, followed by the US ($6.62 billion) and Mauritius.

Explanation: Cement was the best-performing sector in November, registering the highest YoY growth of 14.5%.

Explanation: Outward remittances under the LRS declined mainly due to lower spending on overseas travel (down 7.02%) and overseas education (down 26.19%).

Explanation: The Indian economy is expected to grow at 7% in FY27, supported by domestic consumption and strong capital goods order books.

Explanation: Odisha led in GST growth with a 22.4% CAGR, fueled largely by its mineral wealth and mining revenues.

Explanation: Telangana led in direct tax growth (50.7% CAGR), driven by Hyderabad’s emergence as a major Global Capability Centre (GCC) hub.

Explanation: Maharashtra remained at the top for absolute GST collections in FY25 with ₹359,855 crore.

Explanation: Aggregate small business credit exposure reached ₹46 lakh crore, recording a 16.2% year-on-year growth.

Explanation: The National Institute of Food Technology Entrepreneurship and Management (NIFTEM), Kundli, was selected to implement the PM VIKAS scheme.

Explanation: Fino Payments Bank received the RBI’s ‘in-principle’ approval to convert into a Small Finance Bank (SFB).

Explanation: The OECD retained India’s FY26 growth forecast at 6.7% and FY27 at 6.2%.

Explanation: Fitch Ratings revised India’s FY26 growth forecast to 7.4% from 6.9%, citing strong consumer spending and improved sentiment.

Explanation: Average recovery rates under the Insolvency and Bankruptcy Code (IBC) improved to over 30%, compared to 15-20% under the previous system.

Explanation: Industrial growth slowed to a 14-month low of 0.4% in October 2025, pulled down by electricity and consumer non-durables.

Explanation: The bill allows a higher excise duty on tobacco to keep the tax burden identical once the GST compensation cess (which was used for COVID loans) ends.

Explanation: Despite the decline, Russia remains the top supplier, accounting for about 32% of India’s total oil imports by value and volume.

Explanation: The MPC unanimously decided to reduce the repo rate to 5.25%, retaining a neutral policy stance.

Explanation: BPCL was recognized globally for its startup collaboration initiatives like ‘Ankur’ and the BPCL Ankur Fund.

Explanation: Select customers will receive SMS messages from short code 127000 to review, modify, or revoke consents given to banks for promotional communications.

Explanation: SBI and BoB received approval to set up the Indian Digital Payment Intelligence Corporation (IDPIC) to enhance digital payments intelligence.

Explanation: Retail inflation increased slightly to 0.7% in November 2025 from a historic low of 0.25% in October.

Explanation: The India-Italy Business Forum was held in Mumbai on December 11, 2025, during the visit of Italian Deputy Prime Minister Antonio Tajani.

Explanation: DBS was named Global Bank of the Year 2025 by The Banker, praised for its innovative use of AI and blockchain.

Explanation: Gujarat recorded the highest overall loan growth in FY25 at 14.14%, followed by Tamil Nadu at 11.4%.

Explanation: On the deposits side, Karnataka posted the highest deposit growth in FY25 at 12.5%.

Explanation: India’s fertiliser imports are projected to rise 41% to 22.3 million tonnes in 2025-26 due to higher domestic demand following a good monsoon.

Explanation: ASUSE stands for the Annual Survey of Unincorporated Sector Enterprises, assessing manufacturing, trade, and services.

Explanation: Under the LRS framework, resident individuals can remit up to $250,000 per financial year for permissible transactions.

Explanation: Inflation for FY26 is officially projected at a low of 2.0%, before rising to around 4.0% by Q2 FY27.

Explanation: The energy sector received funding including $650 million for the PM Surya Ghar Muft Bijli Yojana.

Explanation: The electricity sector was the only laggard in November, contracting by 1.5% compared to positive growth in other sectors.