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.