RBI & Policy — Set 6
Economics · RBI और नीति · Questions 51–60 of 120
In which state is the RBI's 'Indira Gandhi Institute of Development Research' (IGIDR) located?
Correct Answer: B. Maharashtra
The correct answer is 'Maharashtra'. IGIDR is an advanced research institute established by the RBI in Mumbai. It focuses on multi-disciplinary research in economics and development issues. It is a deemed university and offers masters and doctoral programs.
The 'Priority Sector Lending' (PSL) norms are issued by the RBI to ensure credit to?
Correct Answer: C. Agriculture and Small Scale industries
PSL mandates that banks must direct a specific percentage of their lending to sectors like agriculture, MSMEs, and education. For domestic commercial banks, the target is usually 40% of their adjusted net bank credit. This ensures balanced development of the economy.
What is 'Base Rate' in the banking terminology introduced by the RBI?
Correct Answer: D. Minimum interest rate below which banks cannot lend
The Base Rate system was introduced in 2010 to bring transparency to the pricing of bank loans. It replaced the Benchmark Prime Lending Rate (BPLR). It has now been further updated to the MCLR and external benchmark systems.
Which rate does the RBI use to signal its 'monetary policy stance' to the market?
Correct Answer: B. Repo Rate
The Repo Rate is the primary policy rate used by the RBI to communicate its stance (e.g., hawkish or dovish). Changes in this rate act as a signal for banks to adjust their own lending and deposit rates. It is the most watched number during the RBI's bi-monthly reviews.
The 'Financial Stability Report' (FSR) is published by the RBI every?
Correct Answer: B. Six months
The correct answer is 'Six months'. The FSR is a bi-annual publication that assesses the risks to the stability of the Indian financial system. It includes results of stress tests conducted on banks' balance sheets. It serves as a health check-up for the entire financial sector.
Which software system is used by the RBI for its core banking operations?
Correct Answer: D. e-Kuber
e-Kuber is the RBI's centralized Core Banking Solution (CBS). It allows various stakeholders like banks and governments to interact with the RBI's ledger in real-time. It supports auctions of government securities and fund transfers.
What is the 'Currency Chest' in the context of RBI operations?
Correct Answer: B. Bank branches where RBI stores excess cash
Currency chests are select bank branches that store notes and coins on behalf of the RBI. They facilitate the distribution of currency to other bank branches in the area. This decentralized system ensures liquidity across the country.
The 'Reserve Tranche Position' managed by the RBI refers to?
Correct Answer: D. A portion of the quota with the IMF
The Reserve Tranche is a part of India's quota in the International Monetary Fund that can be accessed without any conditions. It is considered a part of the country's foreign exchange reserves. The RBI manages this position as part of its external asset management.
Which of the following is responsible for maintaining the value of the Indian Rupee in the international market?
Correct Answer: B. RBI
The RBI intervenes in the foreign exchange market to prevent excessive volatility in the exchange rate. It buys or sells dollars to stabilize the rupee's value. However, the RBI does not target a specific fixed exchange rate.
What is the 'Consumer Price Index' (CPI) target for the current five-year period in India?
Correct Answer: D. 4%
The current inflation target is 4%, with an upper tolerance limit of 6% and a lower limit of 2%. If inflation stays outside this range for three consecutive quarters, the RBI must explain the failure to the government. This mandate ensures accountability in monetary policy.