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