RBI NewsTap

August 2024
The IMF in its latest WEO update
released on July 16, 2024,
maintained the global growth
forecast for 2024 at 3.2 per cent
(retained as in the April 2024 WEO)
and revised up the growth forecast
by 10 basis points (bps) to 3.3 per
cent for 2025.
 MCQs for Practice

Q. As per the recent Monetary Policy Committee Statement which of the following
statement is\are correct?
1. Real GDP growth for 2024-25 is projected at 7.2 per cent.
2. Core (CPI excluding food and fuel) inflation at 3.1 per cent in May-June touched a
new low in the current CPI series, with core services inflation also at its lowest in
the series.
3. Assuming a normal monsoon, CPI inflation for 2024-25 is projected at 5.5 per
cent

A. 1 and 2
B. 2 and 3
C. 1 and 3
D. 1 only
E. 2 only

Ans. A
 MCQs for Practice

Q. As per the Governor’s Statement, MPC at its meeting decided to Keep

the policy repo rate under the liquidity adjustment facility (LAF)
unchanged at 6.50 per cent. It was also informed that India’s foreign
exchange reserves reached a historical high of US$ _____________ billion as
of August 2, 2024.

A. 625
B. 650
C. 675
D. 700
E. 725

Ans. C
 MCQs for Practice

Q. RBI has observed that some of the P2P platforms have adopted certain practices which are
violative of the Non-Banking Financial Company – Peer to Peer Lending Platform (Reserve
Bank) Directions. RBI has reviewed the Master Direction and As per the Amended Provision
The aggregate exposure of a lender to all borrowers at any point of time, across all P2P
platforms, shall be subject to a cap of Rs._______________________ provided that the amount
lent by the lenders on P2P platforms is consistent with their net-worth.

A. 10,00,000
B. 20,00,000
C. 30,00,000
D. 40,00,000
E. 50,00,000

Ans. E
 MCQs for Practice

Q. RBI has been decided to elaborate and clarify certain provisions with some
modifications for proper implementation of the Non-Banking Financial Company –
Peer to Peer Lending Platform (Reserve Bank) Directions. As per the Amended
Provisions, the funds transferred into the Lenders’ Escrow Account and Borrowers’
Escrow Account shall not remain in these Escrow Accounts for a period exceeding
‘_______________’ day, where ‘T’ is the date on which the funds are received in these
Escrow Accounts.

A. T+0
B. T+1
C. T+2
D. T+3
E. T+4

Ans. B
Real gross domestic product (GDP) is expected to grow by 7.0 per cent in 2024-
25, revised up by 20 basis points (bps) from the previous round. It is expected to
grow by 6.7 per cent in 2025-26

Annual growth in real private final consumption expenditure (PFCE) and real
gross fixed capital formation (GFCF) for 2024-25 are expected at 6.0 per cent and
8.0 per cent, respectively.

Real gross value added (GVA) growth projection has been revised up marginally
to 6.7 per cent for 2024-25 and remained unchanged at 6.4 per cent for 2025-26.

Annual headline inflation, based on consumer price index (CPI), is expected at 4.5
per cent for both the years 2024-25 and 2025-26
 MCQs for Practice

Q. The Reserve Bank has been conducting the survey of professional forecasters (SPF)

since September 2007. Forty-four panellists participated in the 89th round of the bi-
monthly survey conducted during July 2024. Real gross domestic product (GDP) is
expected to grow by _______________ in 2024-25, revised up by 20 basis points (bps) from
the previous round. It is expected to grow by 6.7 per cent in 2025-26
A. 7.7%
B. 7.5%
C. 7.2%
D. 7.0%
E. 6.9%
Ans. D
 External Sector

Merchandise exports and imports are projected to grow by 3.8 per cent and 5.3 per
cent, respectively, during 2024-25 and by 5.4 per cent and 5.8 per cent, respectively,
during 2025-26, in US dollar terms

Current account deficit (CAD) is expected at 1.0 per cent (of GDP at current market
prices) during 2024-25 and at 1.1 per cent during 2025-26.
 MCQs for Practice

Q6. As per the Reserve Bank survey of professional forecasters (SPF), Merchandise exports and

imports are projected to grow by 3.8 per cent and 5.3 per cent, respectively, during 2024-25 and
by 5.4 per cent and 5.8 per cent, respectively, during 2025-26, in US dollar terms. Current
account deficit (CAD) is expected at _________________ percent (of GDP at current market prices)
during 2024-25 and at 1.1 per cent during 2025-26.

A. 0.5
B. 0.6
C. 0.9
D. 1.0
E. 1.1
Ans. D
The Reserve Bank released the results of July 2024 round of its bi-monthly consumer confidence survey.
The survey collects current perceptions (vis-à-vis a year ago) and one year ahead expectations of
households on general economic situation, employment scenario, overall price situation, own income and
spending across 19 major cities.
The latest round of the survey was conducted during July 2-11, 2024, covering 6,062 respondents. Female
respondents accounted for 54.4 per cent of this sample.

Consumer confidence for current

period declined for the second
consecutive survey round after
prolonged rising trend in the
post-Covid period; their
sentiments on major
parameters, except spending,
moderated and, as a result, the
current situation index (CSI)
declined to 93.9 in July 2024
from 97.1 two months earlier.

Households’ optimism on economic conditions for the year ahead remained in

positive terrain, though it came down from the previous survey round; lower
optimism on general economic situation, employment and prices led to 4.1 point
moderation in the future expectations index (FEI) to 120.7 in July 2024
 MCQs for Practice

Q. The Reserve Bank released the results of July 2024 round of its bi-monthly consumer

confidence survey. The survey collects current perceptions (vis-à-vis a year ago) and one year
ahead expectations of households on general economic situation, employment scenario, overall
price situation, own income and spending across _________ major cities. The latest round of the
survey was conducted during July 2-11, 2024, covering 6,062 respondents.
A. 10
B. 15
C. 19
D. 25
E. 39
Ans. C
 MCQs for Practice

Q. The Reserve Bank has constituted an Expert Committee to: (a) benchmark the statistics

regularly disseminated by it against global standards / best practices; (b) study the quality of
other regular data, where such benchmarks do not exist (e.g., sectors of national priority); and
(c) provide guidance on the scope for any further data refinement. The Committee will submit
its report by the end of November 2024 and is under the Chairmanship of ________________.

A. Shri Shaktikanta Das

B. Shri Sudarshan Sen
C. Dr. Partha Ray
D. Dr. R. B. Barman
E. Dr. Michael Debabrata Patra

Ans. E
 MCQs for Practice

Q. The Reserve Bank of India (RBI) has proposed to increase the UPI limit for tax
payments to help the taxpayers to pay higher tax liability quickly from Rs 1 lakh to
Rs ___________________. The payments made via UPI usually do not attract any
additional charges.

A. 2 Lakh
B. 3 Lakh
C. 4 Lakh
D. 5 Lakh
E. 6 Lakh
Ans. D
 MCQs for Practice

Q. RBI has directed that CICs and CIs shall keep the credit information
collected/maintained by them updated regularly on a fortnightly basis (i.e., as on 15th
and last day of the respective month) or at such shorter intervals as mutually agreed
upon between the CI and the CIC. CICs are required to ingest credit information data
received from the CIs, as per their data acceptance rules, within 7 calendar days of its
receipt from the CIs. This is now being revised to __________calendar days of its receipt.
A. 1
B. 2
C. 3
D. 4
E. 5
Ans. E
 MCQs for Practice

Q. In order to ensure that the SRO delivers on its objectives and responsibilities, it is important to
ensure that its independence and integrity is enshrined in its establishment and composition. The
entities intending to function as an SRO shall, therefore, fulfil certain eligibility criteria. Which of
the following eligibility criteria is correct in regards of the SRO?
1. not-for-profit company registered under Section 8 of the Companies Act, 2013.
2. must have minimum net- worth of INR 1 crore
3. no entity shall hold 5% or more of its paid-up share capital, either singly or acting in concert.

A. 1 and 2
B. 2 and 3
C. 1 and 3
D. 1 only
E. 2 only
Ans. D
 MCQs for Practice

Q. Reserve Bank of India recently released Financial Literacy Ideathon – Winners. The Reserve
Bank of India had announced a Financial Literacy Ideathon for post graduate students on the
topic “________________” as part of its Financial Literacy Week 2024 campaign.

A. Smart Digital Payments: Deepening and Penetration of Digital System

B. Make a Right Start: Become Financially Smart
C. Saving, planning, and budgeting: Prudent use of digital financial services
D. Money Matters for Young Adults: Rethinking Outreach Strategies
E. Good Financial Behaviour, Your Saviour
Ans. D
 Survey of Foreign Liabilities and Assets of Mutual Fund
Companies – 2023-24
The Reserve Bank released the results of the 2023-24 round of the survey of
Foreign Liabilities and Assets of the Mutual Fund (MF) Companies

The survey covered 45 Indian MF companies and their Asset Management

Companies (AMCs), which held/acquired foreign assets/ liabilities during
2023-24 and/or in the preceding years.
 Highlights – Mutual Fund Companies
Foreign liabilities of MF companies increased by 36.0 per cent during 2023-24 to US$ 25.4 billion
at market value in March 2024; these were largely held in the form of units issued to non-
residents.

Overseas assets of MF companies increased to US$ 8.8 billion in end-March 2024, primarily on
account of rise in equity securities.

As a result, the net foreign liabilities of MF companies increased to US$ 16.6 billion in March
2024 from US$ 12.0 billion a year ago.
The United Arab Emirates (UAE), the United States of America (USA), the United Kingdom (UK)
and Singapore were the top destinations for MF units held by non-residents, both in terms of face
value as well as at market value
 Highlights – Mutual Fund Companies

Foreign liabilities of MF companies increased by 36.0 per cent during 2023-24 to

US$ 25.4 billion at market value in March 2024; these were largely held in the
form of units issued to non-residents

Overseas assets of MF companies increased to US$ 8.8 billion in end-March 2024,

primarily on account of rise in equity securities.

As a result, the net foreign liabilities of MF companies increased to US$ 16.6

billion in March 2024 from US$ 12.0 billion a year ago.

The United Arab Emirates (UAE), the United States of America (USA), the United
Kingdom (UK) and Singapore were the top destinations for MF units held by non-
residents, both in terms of face value as well as at market value

The USA and Luxembourg accounted for nearly 85 per cent of the overseas
equity investment of the MF companies.
 Highlights – Asset Management Companies

Foreign liabilities of AMCs increased by US$ 3.4 billion to US$ 6.4 billion in
March 2024 due to higher inward direct as well as portfolio investments during
the year.

Their overseas assets stood low at US$ 0.1 billion.

Residents of Japan, Canada and the UK together accounted for 83.0 per cent of
FDI among Indian AMCs.
 MCQs for Practice

Q. The Reserve Bank released the results of the 2023-24 round of the survey of Foreign
Liabilities and Assets of the Mutual Fund (MF) Companies. Which of the following
statements is\are incorrect in regard to the Survey?
1. Foreign liabilities of MF companies increased by 36.0% during 2023-24
2. The United Arab Emirates (UAE), the United States of America (USA), the United
Kingdom (UK) and Singapore were the top destinations for MF units held by non-
residents, both in terms of face value as well as at market value
3. The USA and Luxembourg accounted for nearly 95% of the overseas equity
investment of the MF companies.
A. 1 and 2
B. 2 and 3
C. 1 and 3
D. 2 only
E. 3 only
Ans. E
Below the Line refers to items in a profit and loss statement
that are income or expense items that are not normally
incurred in a company's day-to-day operations.
HFCs may continue to participate in permitted currency
derivatives in OTC market, as hitherto, for hedging their
underlying exposures, subject to adherence to relevant
instructions as issued by the Reserve Bank.
 MCQs for Practice

Q. Currently, in terms of Section 29B of the NHB Act, 1987, deposit taking HFCs are
required to maintain 13 per cent liquid assets against public deposits held by them.
In exercise of powers conferred under Section 29B of NHB Act, 1987, it has now been
decided that all deposit taking HFCs shall maintain, on an ongoing basis, liquid
assets to the extent of _______________________ per cent of the public deposits held by
them, in a phased manner.
A. 14.0%
B. 14.5%
C. 15.0%
D. 15.75%
E. 16.0%

Ans. C
An undisbursed amount is money that has been committed but
not yet paid out. Undisbursed Funds are committed by the
creditor but not yet utilized by the borrower.
Q. Recently (September 2021) NARCL was launched by the
Union Cabinet approving the government guarantee on
security receipts to buy bad loans of lenders. It has been
incorporated under the Companies Act and has applied for
license from RBI. What does R stand for in NARCL?

1. Resolution
2. Reconstruction
3. Restructuring
4. Revenue
5. None of the Above