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1.  
About the Monetary Policy Committee, which is/are correct?
I. Three of its members are appointed by the Central Government.
II. The external members hold office for four years.
III. It must meet at least six times a year.

Correct Answer: C [Only I and II]

Explanation:

I and II true; III false – at least four times a year.

2.  
About the RBI's Central Board, which is/are correct?
I. Directors nominated by the Government from the local boards and from various fields hold office for four years.
II. Ten non-official directors are nominated by the Government from various fields.
III. One director is taken from each of five local boards.

Correct Answer: A [Only I and II]

Explanation:

Nominated directors serve 4 years; 10 from various fields; 4 local boards (not 5).

3.  
About the MPC decision announced on 7 October 2026, which is/are correct?
I. The policy repo rate was cut by 25 bps.
II. The stance was changed to 'calibrated tightening'.
III. After the decision, the SDF rate stood at 5.25%.

Correct Answer: B [Only II and III]

Explanation:

I false – repo was raised by 25 bps to 5.50%; II and III true.

4.  
About note issue, which is/are correct?
I. The RBI must hold gold equal to 40% of the notes it issues.
II. Under the Minimum Reserve System the RBI must hold assets of at least ₹ 200 crore.
III. Of those minimum reserves, gold must be at least ₹ 115 crore.

Correct Answer: E [Only II and III]

Explanation:

I false – that was the old proportional system, replaced in 1957; II and III true.

5.  
CRR is raised from 3.00% to 3.50%. A bank with NDTL of ₹ 5,00,000 crore must keep how much more with the RBI?

Correct Answer: D [₹ 2,500 crore]

Explanation:

0.5% of 5,00,000 = ₹ 2,500 crore.

6.  
A ₹ 75 lakh floating loan is linked to repo with full pass-through. Repo falls by 35 bps. The yearly interest saving is:

Correct Answer: E [₹ 26,250]

Explanation:

75,00,000 × 35 ÷ 10,000 = ₹ 26,250.

7.  
Which of the following is/are wholly owned subsidiaries of the RBI?
I. Reserve Bank Information Technology Pvt Ltd (ReBIT)
II. National Bank for Agriculture and Rural Development (NABARD)
III. Reserve Bank Innovation Hub (RBIH)

Correct Answer: C [Only I and III]

Explanation:

I and III; NABARD is fully owned by the Government of India.

8.  
How many are correct? (a) CRR is prescribed under Section 42 of the RBI Act. (b) The SLR ceiling under the BR Act is 40%. (c) SLR assets are kept as balances with the RBI. (d) Banks earn interest on their CRR balances.

Correct Answer: D [2]

Explanation:

(a) and (b) true; SLR assets are held by the bank; CRR earns no interest.

9.  
Odd one out – which is NOT a function of the RBI?

Correct Answer: A [Regulator of insurance companies]

Explanation:

Insurance companies are regulated by IRDAI; the rest are RBI functions.

10.  
Quarterly average CPI inflation for five consecutive quarters (Q1–Q5) is 6.2%, 5.9%, 6.3%, 6.4% and 6.1%. At the end of which quarter is the 'failure' condition first met?

Correct Answer: B [Q5]

Explanation:

Three consecutive quarters above 6% first occur in Q3–Q5, so the end of Q5.

11.  
About the revised Prompt Corrective Action framework for scheduled commercial banks, which is/are correct?
I. It became effective from 1 January 2022.
II. Its asset-quality indicator is the Gross NPA ratio.
III. Small finance banks and payments banks are excluded from it.

Correct Answer: B [Only I and III]

Explanation:

I and III true; II false – the indicator is the Net NPA ratio (thresholds 6%, 9%, 12%).

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