Question Bank

34 questions · page 2 of 2

• Economy & Banking25 Apr 2026

  RBI's power to cancel a banking licence is provided under which provision of the Banking Regulation Act, 1949?

  1. A.Section 22
  2. B.Section 35
  3. C.Section 36AB
  4. D.Section 38
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  Answer: C. Section 36AB

  Section 36AB of the Banking Regulation Act, 1949 (added by amendment) explicitly empowers the RBI to cancel a banking licence where the operations of the bank are detrimental to depositor interests or public interest. Section 22 provides for INITIAL ISSUANCE of banking licences; Section 35 governs INSPECTIONS; Section 38 deals with WINDING-UP PROCEEDINGS in the High Court.

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• Economy & Banking25 Apr 2026

  Which of the following is a key restriction on payments banks in India that distinguishes them from commercial banks?

  1. A.Cannot accept demand deposits
  2. B.Cannot offer credit/loans
  3. C.Cannot issue debit cards
  4. D.Cannot facilitate digital payments
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  Answer: B. Cannot offer credit/loans

  Payments banks CANNOT offer credit/loans — this is a key restriction distinguishing them from commercial banks and small finance banks. Payments banks CAN: accept demand deposits up to ₹2 lakh per customer, issue ATM/debit cards, facilitate payments and remittances, distribute non-risk-sharing financial products (mutual funds, insurance, pension).

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• Economy & Banking25 Apr 2026

  For the week ended 17 April 2026, India's Foreign Currency Assets (FCA) — the largest component of forex reserves — stood at:

  1. A.$417.46 billion
  2. B.$497.46 billion
  3. C.$557.46 billion
  4. D.$617.46 billion
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  Answer: C. $557.46 billion

  Foreign Currency Assets (FCA) stood at $557.46 billion for the week ended 17 April 2026 — up $1.48 billion week-on-week. FCA is typically about 80% of India's total forex reserves and includes foreign currencies, deposits with foreign central banks and BIS, and foreign government securities (mainly US Treasuries).

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• Economy & Banking25 Apr 2026

  Which country has recently overtaken India as the leading exporter of corn (maize) to Bangladesh?

  1. A.United States
  2. B.Argentina
  3. C.Brazil
  4. D.Ukraine
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  Answer: C. Brazil

  Brazil has overtaken India as the leading exporter of corn (maize) to Bangladesh. For years India had held the dominant position thanks to competitive pricing and geographical proximity, but since 2024 rising domestic demand — especially for ethanol production under India's Ethanol Blending Programme — has reduced India's export capacity. Brazil capitalised with large-scale production, efficient supply chains, and consistent supply volumes.

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