RBI The Game Changer Circular in September Month 2025

Q. The Reserve Bank of India (RBI) has, imposed a monetary penalty of ₹44.70 lakh on ___ (the
bank) for contravention of section 10(1)(b)(ii) of the Banking Regulation Act, 1949
A) Federal Bank B) Bandhan Bank Ltd
C)Karur Vysya Bank D)Axis Bank
Answer:- B
✓ The Reserve Bank of India (RBI) has, by an order dated August 26, 2025, imposed a monetary
penalty of ₹44.70 lakh on Bandhan Bank Limited (the bank) for contravention of section
10(1)(b)(ii) of the Banking Regulation Act, 1949 (BR Act), and non-compliance with certain
directions issued by RBI on ‘Automation of Income Recognition, Asset Classification and
Provisioning processes in banks’.
✓ This penalty has been imposed in exercise of powers conferred on RBI under the provisions of
section 47 A (1) (c) read with section 46 (4) of the BR Act.
Q. The Reserve Bank of India (RBI) has launched a dedicated microsite for banknotes:http://
[Link]. The platform is designed to provide the public with comprehensive
information on Indian banknotes, replacing the earlier___
A) [Link]
B) [Link]
C) [Link]
D) [Link]
E) [Link]
Answer:- B
Q. The Reserve Bank of India (RBI) acquired a 4.16-acre plot of land in Mumbai's ____ Point
from the Mumbai Metro Rail Corporation (MMRC) for ₹3,472 crore (Rs 34.72 billion),
making it one of the largest real estate deals in recent history in the area.
A)Zone B Point B)Nariman Point
C)Sector C Point D)Khusinagar Gateway Point
Answer:- B
✓ The Reserve Bank of India (RBI) acquired a 4.16-acre plot of land in Mumbai's Nariman Point
from the Mumbai Metro Rail Corporation (MMRC) for ₹3,472 crore (Rs 34.72 billion),
making it one of the largest real estate deals in recent history in the area.
Q. The Reserve Bank of India (RBI), through an internal circular, has launched an open house for
its current and retired employees to provide input on improving the central bank's functioning.
This session is scheduled to take place daily, Monday through Friday,
A)Tuesday to Friday B) Wednesday & Friday
C) All working days D) Tuesday to Friday
Answer:- C
✓ The Reserve Bank of India (RBI), through an internal circular, has launched an open house for
its current and retired employees to provide input on improving the central bank's functioning.
✓ This session is scheduled to take place daily, Monday through Friday, from 10:00 AM to 10:30
AM, allowing employees to interact directly with the Governor without needing a prior
appointment. Governor Sanjay Malhotra, who began his tenure as the 26th Governor of the
RBI in December 2024, introduced this initiative as part of his commitment to a consultative
approach with stakeholders.

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 Q. Which organisation is plans to allow banks to remotely lock mobile phones bought on credit if
the borrowers default on those loans ?
A)SEBI B)IFSCA
C)PFRDA D)RBI
Answer:- D
✓ The Reserve Bank of India (RBI) plans to allow banks to remotely lock mobile phones bought
on credit if the borrowers default on those loans, in a move aimed at curbing bad assets that is
likely to raise consumer rights concerns.
✓ Over one-third of consumer electronics, including phones, are purchased on small-ticket
personal loans in India, a 2024 study by Home Credit Finance showed. India has over 1.16
billion mobile connections, according to the telecom regulator TRAI (Telecom Regulatory
Authority of India), reflecting deep market penetration
Q. The Reserve Bank of India (RBI) has accorded its approval to which Bank for purchase of
additional shareholding of up to 2 per cent in its subsidiary, ICICI Prudential Asset
Management Company ?
A)HDFC Bank B)State Bank of India
C)ICICI Bank D)Axis Bank
Answer:- C
✓ The Reserve Bank of India (RBI) has accorded its approval to ICICI Bank for purchase of
additional shareholding of up to 2 per cent in its subsidiary, ICICI Prudential Asset
Management Company.
✓ This is to maintain its majority shareholding, subject to compliance with applicable
regulations, ICICI Bank said in a regulatory filing
✓ ICICI Bank holds 51% stake in ICICI Prudential Asset Management Company while the
remaining 49% is with its joint venture partner UK-based Prudential PLC
Q. The Reserve Bank of India (RBI) has , imposed a monetary penalty of Rs. 21 lakh on___ Ltd
A)Paytm B)Google pay
C)BharatPe D)Phone Pe
Answer:- D
✓ The Reserve Bank of India (RBI) has , imposed a monetary penalty of Rs. 21 lakh on PhonePe
Limited
✓ This penalty has been imposed in exercise of powers conferred on RBI under the provisions of
Section 30(1) read with Section 26(6) of the Payment and Settlement Systems Act, 2007.
✓ The end of the day balance in the escrow account of the company was less than the value of
outstanding PPls and payments due to merchants on certain days and the company did not
report shortfall in the said escrow account to RBI immediately.
✓ The Reserve Bank of India issued directions to regulate payment aggregators, which came into
effect immediately.
Q. An entity seeking authorisation to commence or carry on PA business shall have a minimum
net-worth of ₹15 crore at the time of tendering application for authorisation; and shall attain a
minimum net-worth of ₹___ crore by the end of the third financial year of grant of
authorisation
A)Rs. 20 Crore B)Rs. 25 Crore
C)Rs. 30 Crore D)Rs. 22 Crore
Answer:- B

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 ✓ The Reserve Bank of India issued directions to regulate payment aggregators, which came into
effect immediately
✓ As per the RBI(Regulation of Payment Aggregators) Directions, 2025,payments aggregators
are categorised into three categories as per the work they undertake
✓ These categories include PA-P for physical PAs; PA-CB for cross-border and PA-O for online
PAs,as per the directions
✓ A bank does not require authorisation to carry out PA business, while for non-banks, the RBI
has set specific capital requirements
✓ An entity seeking authorisation to commence or carry on PA business shall have a minimum
net-worth of ₹15 crore at the time of tendering application for authorisation; and shall attain a
minimum net-worth of ₹25 crore by the end of the third financial year of grant of authorisation
✓ PA-CBs will be barred from purchasing or selling foreign currency to any entity, except an
authorised deale
✓ Maximum value per transaction has been set at INR 25 Lakhs for inward or outward
payments processed by a PA-CB
Q. The Reserve Bank of India announced that it has constituted a Regulatory Review Cell
(RRC), in a bid to strengthen the institutional mechanism for review of regulations and its
supporting Advisory Group on Regulation (AGR) which is chaired by___
A)Shri Gautam Thakur B)Shri N.S Kanan
C)Shri Rana Asutosh Kumar D)Shri Shyam Srinivasan
Answer:- C
✓ In continuation of the Framework for Formulation of Regulations1, the Reserve Bank of India
has decided to strengthen the institutional mechanism for review of regulations2 and has
constituted a Regulatory Review Cell (RRC).
✓ The mandate of the RRC is to ensure that all the regulations issued by the Bank are subject to
a comprehensive and systematic internal review every 5 to 7 years. The RRC shall be set up in
the Department of Regulation effect from October 1, 2025
✓ An independent Advisory Group on Regulation (AGR) has been formed (Chairman Shri Rana
Asutosh Kumar Singh, Md of State Bank of India )concurrently, comprising of external
experts, to channel industry feedback into the periodic review of regulations through the RRC
✓ The AGR will have the provision to co-opt additional experts as considered appropriate. It will
have an initial tenure of three years, renewable by a further period of two years, subject to
review.
Q. ____ Bank India announced that it has been authorised by the Reserve Bank of India (RBI) as
an Agency Bank to collect Goods and Services tax (GST) payments , making it the only
wholly owned subsidiary in India to receive this approval from RBI.
A)HSBC Bank B)DBS Bank
C)Emirates Nbd D)Mashreq Bank
Answer:- B
✓ DBS Bank India announced that it has been authorised by the Reserve Bank of India (RBI) as
an Agency Bank to collect Goods and Services tax (GST) payments , making it the only
wholly owned subsidiary in India to receive this approval from RBI.
Q. As per the RBI data ____ has remained the top state in attracting investments as it got the most
number for projects in each year between FY15 and FY25
A) Maharashtra B) Gujarat
C) Karnataka D) Uttar Pradesh

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 Answer:- B
✓ Gujarat has remained the top state in attracting investments as it got the most number for
projects in each year between FY15 and FY25, while Maharashtra has retained the second
place for the last four fiscal years, showed data available in a study by the Reserve Bank of
India
✓ In FY25, 907 projects got assistance from banks and financial institutions with a total cost of
projects of Rs 3.7 lakh crore. Of this, Gujarat secured highest number of projects at 152
followed by Maharashtra and Uttar Pradesh at 111 and 78. These 3 states along with Andhra
Pradesh and Rajasthan accounted for about 60% in total cost of the projects.
Q. The Centre will route the funds for all centrally sponsored schemes (CSS), with an aggregated
annual budget outlay of Rs ___lakh crore, through the Reserve Bank of India
A)5 Lakh crore B)10 Lakh crore
C)15 Lakh crore D)20 Lakh crore
Answer:- A
✓ The Centre will route the funds for all centrally sponsored schemes (CSS), with an aggregated
annual budget outlay of Rs 5 lakh crore, through the Reserve Bank of India
✓ Starting from November 1, 2025, the Indian government will channel funds for Centrally
Sponsored Schemes (CSS) directly through the Reserve Bank of India's (RBI) e-kuber platform
using the SNA Sparsh model, replacing the previous system of releasing funds to state
treasuries.
✓ This reform aims to ensure just-in-time fund release, prevent misuse of funds, and reduce
interest costs for the central government by minimizing fund float at state levels.
✓ At present, the Centre has already notified 66 CSSs for implementation under the SNA (Single
Nodal Agency) SPARSH model, expenditure secretary Vumlunmang Vualnam said
Q. The Reserve Bank of India is considering allowing lenders to use " device locking
technology"(DLT) , by which they can lock the borrowers smartphone in the case of a default.
What does D stand in DLT ?
A) Digital B) Door
C) Device D) Distance
Answer:- C
✓ The Reserve Bank of India (RBI) is considering allowing lenders to use "device-locking
technology" (DLT) as a measure to address loan defaults, particularly for small-ticket loans to
customers new to credit.
✓ This technology would enable lenders to lock a borrower's smartphone in the event of a
default, a concept being explored to mitigate risks in the growing digital lending landscape.
Q. The rate of interest on Government of India Floating Rate Bond 2033 (GOI FRB 2033)
applicable for the half year September 22, 2025 to March 21, 2026 shall be ___ percent per
annum.
A)6.82% B)7.05%
C)8.91% D)6.25%
Answer:- A
✓ The rate of interest on Government of India Floating Rate Bond 2033 (GOI FRB 2033)
applicable for the half year September 22, 2025 to March 21, 2026 shall be 6.82 percent per
annum.
✓ RBI Floating Rate Savings Bonds (Taxable) are issued by the Reserve Bank of India on behalf
of the government of India. They come with a lock - in period of seven years.

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 ✓ It is linked to the National Savings Certificate (NSC), a small savings program offered by the
union government.
✓ The RBI Floating Rate Savings Bonds offer an interest that is 0.35% higher than the prevailing
interest on the NSC.
✓ The interest rate on Floating Rate Savings Bonds is reset every six months
✓ The bonds will be issued for a minimum amount of Rs.1000 (face value) and in multiples
[Link] will be no maximum limit for investment in the bonds.
✓ Non-Resident Indians (NRI) are not eligible to invest in these bonds.
✓ There is no premature withdrawal option, but senior citizens can prematurely withdraw
money with a penalty after a minimum lock-in period. For those aged 60 to 70, the lock-in
period will be six years. For those aged 70 to 80, the lock-in period will be five years. Those
aged above 80 can withdraw their investment after four years from the date of the investment.
Q. In exercise of the powers conferred under Section 45-IA (6) of the Reserve Bank of India Act,
1934, the Reserve Bank has cancelled the Certificate of Registration (CoR) issued to the Delhi-
based _ and Trading Pvt Ltd Non Banking Financial Company (NBFC) due to irregular
lending practices
A)Kinshuk Finance B)Datta Finance
C)ABCD Finance D)Pirmal Finance
Answer:- B
✓ In exercise of the powers conferred under Section 45-IA (6) of the Reserve Bank of India Act,
1934, the Reserve Bank has cancelled the Certificate of Registration (CoR) issued to the Delhi-
based Datta Finance and Trading Pvt Ltd Non Banking Financial Company (NBFC) due to
irregular lending practices
✓ KinCash app & DoLoan app and ZestCash app are the service providers
✓ What are the requirements for registration with the Reserve Bank?
✓ A ‘company’ desirous of commencing the business of non-banking financial institution as
defined under Section 45 I(a) of the RBI Act, 1934 should comply with the following:
✓ It should be a company incorporated under Section 3 of the companies Act, 1956 or
corresponding Section under the Companies Act, 2013;
✓ It should have a minimum net owned fund of ₹10 crore. (The minimum net owned fund
requirements for specialized NBFCs are NBFC-Infrastructure Finance Company (NBFC-IFC)
– ₹300 crore; Infrastructure Debt Fund – NBFC (IDF-NBFC) – ₹300 crore; Mortgage
Guarantee Company (MGC) – ₹100 crore; Housing Finance Company (HFC) – ₹20 crore,
Standalone Primary Dealers (SPDs) which undertake only the core activities – ₹150 crore and
SPDs which also undertake non-core activities – ₹250 crore; NBFC-AA – ₹2 crore; and
NBFC-P2P – ₹2 crore).
Q. Reserve Bank of India has approved the reappointment of former RBI Deputy Governor R
Gandhi as non-executive chairman of the which bank?
A)Yes Bank B)HDFC Bank
C)ICICI Bank D)Axis Bank
Answer:- A
✓ The Reserve Bank of India (RBI), through its letter dated September 1, 2025, has approved the
re-appointment of Rama Subramaniam Gandhi as part-time Chairman of the bank for a
further period from September 20, 2025, to May 13, 2027, at a remuneration appro ved by the
RBI, Yes Bank said in a regulatory filing.

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 ✓ He served as the Deputy Governor of the Reserve Bank of India for three years from 2014 to
2017. He had been a seasoned and accomplished central banker for 37 years.
✓ Gandhi was earlier appointed as Part-time Chairman of Yes bank for a three-year term starting
in September 2022.
✓ He also held the charge of Director of the Institute for Development and Research in Banking
Technology, IDRBT, Hyderabad.
Q. Who was the head of the Sub-Committee of Financial Stability and Development Council
(FSDC-SC) ?
A)Finance Ministry B)RBI Governor
C)Revenue Secretary D)Finance Secretary
Answer:- B
✓ RBI Governor Sanjay Malhotra-headed Sub-Committee of FSDC-SC( Financial Stability and
Development Council) , discussed major global and domestic macroeconomic and financial
sector developments and various issues that may have financial stability implications.
Q. The ___ committee appointed by the Reserve Bank of India to review governance of bank
boards , recommended that the boards of PSBs be allowed to appoint non-official
Directors(NODs)
A) P J Nayak committee, B) Raguram Rajan Committee
C) Vimal Jalan committee D) Urjit patel committee
Answer:- A
✓ The central government is not in favour of allowing PSBs to appoint their own independent
directors, said a senior official, arguing that retaining control is essential to ensure consistent
oversight and to effectively implement financial inclusion schemes
✓ During the PSB Manthan earlier this month, some experts and bankers had suggested that the
power to appoint independent directors should rest with the boards of PSBs to enhance
accountability
✓ In May 2014, the P J Nayak committee, appointed by the Reserve Bank of India to review
governance of bank boards , recommended that the boards of PSBs be allowed to appoint non-
official Directors(NODs)
✓ Non-board directors in PSBs typically include government- nominated directors, RBI-
nominated directors, independent directors ,and shareholders - elected directors
✓ Currently, the department of financial services in the finance ministry selects non-official
Directors (NODs) for PSB
Q. Capital investment by the private sector is likely to rise ____ to Rs 2.67 lakh crore in 2025-26
aided by robust macroeconomic fundamentals, and a 100-bps policy rate cut, according to an
RBI article.
A) 21.5 per cent B) 27.8 per cent
C) 18.5 per cent D) 25.5 per cent
Answer:- A
✓ As per the RBI article, India is set for a robust private capital investment surge in FY26, with
estimates indicating a rise of 21.5% to ₹2,67,432 crore, driven by healthier corporate finances,
favourable policy rates, and strong macroeconomic conditions.

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 Q. The Reserve Bank of India has approved Yes Bank's proposed amendments to its Articles of
Association, facilitating the appointment of nominee directors. This move precedes Sumitomo
Mitsui Banking Corporation's acquisition of stakes from SBI and other lenders. Post-
acquisition, SMBC will nominate ___ directors, and SBI will nominate one, to Yes Bank's
board.
A)3 B)2
C)1 D)4
Answer:- B
✓ Yes Bank said that, the RBI has approved proposed changes in Articles of Association (AoA)
of the bank with regard to appointment of nominee directors on the board.
✓ The changes are in connection with the nomination of 2 nominee directors by Sumitomo
Mitsui Banking Corporation (SMBC) and 1 nominee director by SBI, on the board.
✓ The changes in the board would take effect after Japan-based SMBC acquires stakes of SBI
and other seven banks in Yes Bank.
✓ On May 9, Yes Bank had disclosed that SMBC planned to buy 20 per cent through a
secondary stake purchase, including 13.19 per cent from State Bank of India (SBI) and 6.81 per
cent from seven other lenders -- Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI
Bank, IDFC First Bank, and Kotak Mahindra Bank.
✓ Recently in August SMBC also gets RBI nod to buy upto 24.99% stake in Yes Bank
Q. India's current account experienced a deficit of $2.4 billion, equivalent to ___% of GDP,
during the April-June quarter of FY 2025-26
A)0.1% B)0.2%
C)0.3% D)0.4%
Answer:- B
✓ India’s current account deficit (CAD) narrowed to $2.4 billion (0.2% of GDP) in the April-
June quarter (Q1FY26) from $ 8.6 billion (0.9% of GDP) in the year ago period and against a
surplus of $13.5 billion (1.3% of GDP) in Q4:FY25, according to data released by the Reserve
Bank of India (RBI)
✓ Merchandise trade deficit at $68.5 billion in Q1FY 26 was higher than $63.8 billion in
Q1FY25
✓ A current account deficit (CAD) occurs when a country's total imports of goods, services, and
transfers exceed its total exports and incoming transfers
Q. RBI has ordered ____ a Bengaluru based buy -now- pay- later(BNPL) firm, to shut its payment
operations with immediate effect.
A)Simpl B)Menash
C)Aryavrat D)Kinjel
Answer:- A
✓ RBI has ordered Simpl, a Bengaluru based buy -now- pay- later(BNPL) firm, to shut its
payment operations with immediate effect.
✓ The platform, which works with 26,000 merchants and lets shoppers defer payment at
checkout, had been running a payments system without the central bank's blessing.
✓ Under the payment and settlement System Act 2007 , no company can operate such a system
without explicit authorisation

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 Q. The Reserve Bank of India (RBI) has said the limit for Ways and Means Advances (WMA) for
the central government for the second half of the financial year 2025-26 will be ___ crore
rupees.
A)Rs.25,000 crore B)Rs.50,000 crore
C)Rs.75,000 crore D)Rs.60,000 crore
Answer:- B
✓ The Reserve Bank of India (RBI) has said the limit for Ways and Means Advances (WMA) for
the central government for the second half of the financial year 2025-26 will be 50,000 crore
rupees.
✓ Reserve Bank of India may trigger fresh floatation of market loans when the Centre utilises 75
per cent of the WMA limit.
✓ The WMA is a temporary advance given by the RBI to the central, state governments and
Union Territories to tide over any mismatch in receipts and payments
✓ The facility is governed by Section 17(5) of the RBI Act, 1934, and the advances must be
repaid within 90 days
✓ The interest rate charged on WMAs is linked to the RBI's repo rate.
✓ If the WMA exceeds 90 days, it would be treated as an overdraft (the interest rate on
overdrafts is 2 percentage points more than the repo rate).
Q. The Reserve Bank of India (RBI) issued new rules on authentication for digital payments,
giving banks the flexibility to use options such as biometrics, device-based tokens, and
passphrases for verifying transactions.
The guidelines will come into effect from ?
A)April 1, 2026 B)May 1, 2026
C)June 1, 2026 D)January 1, 2025
Answer:- A
✓ The Reserve Bank of India (RBI) issued new rules on authentication for digital payments,
giving banks the flexibility to use options such as biometrics, device-based tokens, and
passphrases for verifying transactions.
✓ However, it has made two-factor authentication (2FA) mandatory for all transactions, with at
least one factor being dynamic and unique to that transaction. The rules will come into effect
from April 1, 2026, with small-value transactions exempted from 2FA.
✓ The new directions will not apply to cross-border digital payments. However, by October 1,
2026, card issuers must put in place a system to validate non-recurring, cross-border "card-not-
present" (CNP) transactions when authentication is requested by an overseas merchant or
acquirer.
Q. Outward remittances by resident individuals under the Reserve Bank of India's Liberalised
Remittance Scheme (LRS) were almost ___% lower year on year in July at $2452.93 million
A)9% B)15%
C)11% D)17%
Answer:- C
✓ Outward remittances by resident individuals under the Reserve Bank of India's Liberalised
Remittance Scheme (LRS) were almost 11% lower year on year in July at $2452.93 million
✓ The LRS was introduced on February 4, 2004, with a limit of $25,000, which the RBI revised
to the present limit of $2,50,000 in phases consistent with prevailing macro and micro
economic conditions.

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 ✓ Under the scheme, all resident individuals, including minors, are permitted to freely remit up
to $2,50,000 in a financial year (April – March) for any permissible current or capital account
transaction or a combination of both
Q. An amount becomes an unclaimed deposit in India when a bank account or a term deposit
remains dormant or unclaimed for a period of __ years.
A)5 Years B)7 Years
C)9 Years D)10 Years
Answer:- D
✓ The Reserve Bank of India (RBI) has urged banks to intensify efforts to return unclaimed
deposits, including dividends, interest warrants, and insurance proceeds. A special drive is
planned from October to December in rural and semi-urban regions to trace and settle these
dormant funds
✓ Balances in savings or current accounts that have not been operated for 10 years, or term
deposits not claimed within 10 years from the date of maturity, are classified as ‘unclaimed
deposits’. These amounts are transferred by banks to the Depositor Education and fund
maintained by the RBI
✓ The regulator decided to hold district-level week-long joint camps to settle unclaimed funds.
The first camp is scheduled for the first week of October in Gujarat, and more such camps will
be held across the country until December
✓ The State Level Bankers’ Committee (SLBC) has been given primary responsibility to lead this
initiative in the respective states
✓ Parliament was informed in July that unclaimed deposits in India amounted to approximately
Rs 67,270 crore.
✓ The RBI's Unclaimed Deposits Gateway to Access (UDGAM) portal allows depositors to
search for unclaimed accounts across multiple banks. As of March 4, 2024, 30 banks are
participating in the portal,
Q. The government has named Shirish Chandra Murmu as the new Deputy Governor of the
Reserve Bank of India (RBI) for a three-year term, starting October 9. Murmu will take over
from____ , whose tenure will end on October 8.
A)T Rabi Sankar B)S Jankiraman
C)M Rajeswar Rao D)Rajiv Ranjan
Answer:- C
✓ The government has named Shirish Chandra Murmu as the new Deputy Governor of the
Reserve Bank of India (RBI) for a three-year term, starting October 9. Murmu will take over
from M Rajeshwar Rao, whose tenure will end on October 8.
✓ His appointment has been cleared by the Appointments Committee of the Cabinet (ACC).
✓ Murmu, a career central banker, has served as Executive Director at RBI for the past six years.
He currently heads the Department of Supervision (DoS), which undertakes supervision of all
banks and non-banks under RBI’s supervisory purview
✓ According to the RBI Act, 1934, the central bank should have four deputy governors -- two
from within the ranks, one from the commercial banking sector, and an economist to head the
monetary policy department.
✓ With Murmu's appointment, the RBI's four deputy governors will be S C Murmu, T Rabi
Sankar, S Jankiraman and Poonam Gupta

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 ✓ It is worth noting that M Rajeswar Rao was first appointed Deputy Governor in September
2020 for a period of three years and received a one-year extension in 2023, followed by another
extension in 2024. Thus, Rao would complete a total of five years on October 8
✓ An RBI Deputy Governor is appointed for a period not exceeding five years at a time,
according to the Reserve Bank of India Act, 1934.
Q. Reserve Bank of India (RBI) has standardised guidelines for banks to settle claims of deceased
customers to stop divergent practices among banks in this regard.
In a case of accounts that do not have a nominee or a will or a contesting claim, banks can
settle total amount of Rs ___'lakh for co-operative banks and Rs 15 lakh for other lenders by
taking a simple RBI mandated form.
A)Rs. 2 Lakh B)Rs. 3 Lakh
C)Rs. 4 Lakh D)Rs. 5 Lakh
Answer:- D
✓ The Reserve Bank of India (RBI) has standardised guidelines for banks to settle claims of
deceased customers to stop divergent practices among banks in this regard.
✓ The central bank said that while making payment to the nominee or survivor of the deceased
depositor, the bank shall not insist on production of legal documents such Succession
Certificate, Letter of Administration, Probate of Will, etc., or seek any bond of indemnity/
surety from the nominee/ survivor/ third-party, irrespective of the amount standing to the
credit of the deceased account holder.
✓ In a case of accounts that do not have a nominee or a will or a contesting claim, banks can
settle total amount of Rs 5 lakh for co-operative banks and Rs 15 lakh for other lenders by
taking a simple RBI mandated form, death certificate of the deceased depositor, claimant's
verfified identity. The bank must also take an indemnity bond from the claimant and no
objection from non-claimant legal heirs, if applicable.
✓ Legal heir certificate issued by a competent authority or declaration given in specified RBI
format by an independent person who is well known to the family of the deceased, is not a
party to the claim and can be accepted by the bank.
✓ Banks have to implement these new procedures by March 31, 2026
✓ In case the depositor only has a will and no survivor and in cases where a person other than a
legal heir is named as a beneficiary, all applicable documents have to be obtained from the
beneficiary
✓ The direction issued under Sections 35A, 45ZC(3) and 45ZE(4) of the Banking Regulation
Act, 1949 read with Section 56 of the Act
✓ These Directions shall apply to all commercial banks and co-operative banks.
Q. RBI has allowed State and Central Co-operative Banks to invest up to ____of their owned
funds in the share capital of NABARD’s Shared Service Entity (SSE)
A)10% B)5%
C)15% D)20%
Answer:- B
✓ The Reserve Bank of India (RBI), through its Department of Regulation, issued Notification
dated September 26, 2025, allowing State Co-operative Banks (StCBs) and Central Co-
operative Banks (CCBs) to invest in the share capital of a Shared Service Entity (SSE)
established by NABARD (National Bank for Agriculture and Rural Development).
✓ Under the new directions, StCBs and CCBs may subscribe to SSE shares on a voluntary basis.

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 ✓ Such investments are limited to 5% of the bank’s owned funds, including paid-up capital and
reserves. Significantly, these investments will be exempt from the overall prudential limits on
non-SLR investments and the restrictions on unlisted instruments, in line with the circular.
✓ RBI emphasized that these amendments are made under its powers granted by Sections 35A
and 56 of the Banking Regulation Act, 1949, and are considered necessary in the public
interest.
✓ It bears recalling that in collaboration with NCDC and Rural Cooperative Banks (RCBs),
NABARD has established the Shared Services Entity (SSE), named Sahakar Sarathi, to
modernize RCBs and enhance their digital capabilities.
✓ With an authorized capital of Rs 1,000 crore, equally contributed by NABARD (Rs 333.33
crore), NCDC (Rs 333.33 crore), and RCBs (Rs 333.34 crore), the SSE will provide essential
services such as internet and mobile banking, UPI, AEPS, cybersecurity, and back-end
operations.
✓ Which new category of institutions did the RBI allow to participate in rupee Non-Deliverable
Q. Derivative Contracts (NDDCs)?
A) Scheduled Commercial Banks (SCBs)
B) Cooperative Banks
C) Standalone Primary Dealers (SPDs)
D) Regional Rural Banks (RRBs)
Answer : C
✓ RBI allows Standalone traders to trade in Rupee in NDF market.
✓ Reserve Bank of India (RBI) allowed Standalone Primary Dealers (SPDs), authorised as
Authorised
✓ Dealer Category‑III (AD Cat‑III), to participate in rupee Non‑Deliverable Derivative
Contracts (NDDCs)
✓ Earlier, only AD Cat‑I banks and IFSC Banking Units (IBUs) were permitted.
✓ The move expands SPDs’ role as market makers beyond government securities.
✓ It provides residents and non‑residents with wider hedging options against currency risk.
✓ The step is expected to deepen liquidity and align offshore and onshore rupee markets.
✓ For the purpose of this circular, Authorised Persons shall mean AD Cat-I banks and SPDs
authorised as AD Cat-III under Section 10 (1) of the Foreign Exchange
✓ Management Act (FEMA), 1999
✓ The directions contained in this circular have been issued under Section 45W of the Reserve
Bank of India Act, 1934 and Sections 10(4), 11(1) and 11(2) of the FEMA, 1999 (42 of 1999)
and are without prejudice to permissions /approvals, if any, required under any other law.
Q. The RBI has fined ____ ₹2.7 lakh for not complying with Internal Ombudsman norms. An
inspection revealed the company lacked a system to auto-escalate partly or fully rejected
complaints
A)Muthoot Fincrop B)Bharti Group
C)Airtel Payment Bank D)Federal Bank
Answer;- A
✓ The RBI has fined Muthoot FinCorp ₹2.7 lakh for not complying with Internal Ombudsman
norms. An inspection revealed the company lacked a system to auto-escalate partly or fully
rejected complaints

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 Q. The Reserve Bank of India (RBI) hosted the ___ Conference of State Finance Secretaries in
Mumbai, bringing together top officials to deliberate on fiscal policies and financial
management strategies.
A)40th B)35th
C)31st D)38th
Answer:- B
✓ The Reserve Bank of India (RBI) hosted the 35th Conference of State Finance Secretaries in
Mumbai, bringing together top officials to deliberate on fiscal policies and financial
management strategies.
✓ The central theme of the meeting was “Journey towards Economic Prosperity through the
Path of Fiscal Consolidation.”
Q. The Reserve Bank of India (RBI) has issued new directions to banks, effective from ___,
covering interest rate on advances, lending against gold and silver collateral, and capital
regulations.
A) October 1, 2025 B) January 1, 2026
C) December 1, 2026 D) March 1, 2026
Answer: A
✓ The Reserve Bank of India (RBI) has issued new directions to banks, effective from October 1,
2025, covering interest rate on advances, lending against gold and silver collateral, and capital
regulations.
✓ Along with these, the central bank has also released draft guidelines for public comments on
gold metal loans, large exposures, intragroup transactions, and credit information reporting.
✓ RBI has today issued seven Directions/Circulars, proposing to amend some of the extant
Directions/Circulars applicable to banks and other regulated entities
✓ At present, floating rate retail and MSME loans are linked to an external benchmark, with
banks allowed to set a spread. Other than the credit risk premium, these spreads could be
changed only once in three years.
✓ As per the new rules, banks can now reduce spread components earlier than three years to
benefit borrowers.
✓ Further instead of being mandatory, it will be at the discretion of banks to provide an option of
switching to a fixed rate at the time of reset in EMI-based personal loans.
✓ RBI stated, "Banks may reduce the other spread components for the benefit of the borrower
earlier than three years; Banks may, at their discretion, provide the option to switchover to
fixed rate at the time of reset at their discretion".
✓ On lending against gold and silver, the Reserve Bank of India (Lending Against Gold and
Silver Collateral - 1st Amendment Directions), 2025, extends the earlier carve-out, which
permitted such loans only for jewellers.
✓ Now, borrowers using gold as a raw material in manufacturing or industrial processing will
also be eligible. Tier 3 and Tier 4 Urban Co-operative Banks have also been allowed to provide
such loans, similar to scheduled commercial banks.
✓ The Reserve Bank of India (Basel III Capital Regulations - Perpetual Debt Instruments in
Additional Tier 1 Capital - Eligible Limit for Instruments Denominated in Foreign
Currency/Rupee Denominated Bonds Overseas) Directions, 2025, have also been notified.
✓ These continue to provide the framework for scheduled commercial banks, excluding regional
rural banks.

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 ✓ Apart from these three mandatory directions coming into effect from October 1, 2025, the
Reserve Bank of India has also issued four draft guidelines for public feedback.
✓ The draft Gold Metal Loans (GML) Directions, 2025 propose to extend the repayment ceiling
for jewellers to 270 days from the current 180 days and allow GML to domestic non -
manufacturers who outsource jewellery production.
✓ Another one is the draft amendments to the Large Exposures Framework (LEF) and
Guidelines on Management of Intragroup Transactions and Exposures (ITE) clarify prudential
treatment of exposures of Indian branches of foreign banks to their head offices, extend credit
risk mitigation benefits, and link the ITE threshold to Tier-1 capital instead of paid-up capital
and reserves.
✓ Further, under the draft Credit Information Reporting (1st Amendment) Directions, 2025,
credit institutions may be required to submit data to Credit Information Companies on a
weekly basis, instead of fortnightly, along with faster data submission, error rectification, and
capturing CKYC numbers in consumer records.
Q. FDI in India rose ___ per cent to USD 18.62 billion during April-June this fiscal year, while
the inflow from the US nearly tripled to USD 5.61 billion during the quarter
A)10% B)15%
C)20% D)25%
Answer:- B
✓ FDI in India rose 15 per cent to USD 18.62 billion during April-June this fiscal year, while the
inflow from the US nearly tripled to USD 5.61 billion during the quarter despite tariff issues,
according to government data
✓ Foreign Direct Investment (FDI) during April-June FY25 stood at USD 16.17 billion. In
March quarter 2024-25, the inflows fell 24.5 per cent year-on-year to USD 9.34 billion.
✓ Total FDI, which includes equity inflows, reinvested earnings and other capital, increased to
USD 25.2 billion during the quarter under review as against USD 22.5 billion in the same
period of 2024-25.
✓ During the period, the US emerged as the largest source of FDI with USD 5.61 billion as
against USD 1.50 billion in April-June 2024-25 despite tariff issues
✓ It was followed by Singapore (USD 4.59 billion), Mauritius (USD 2.08 billion), Cyprus (USD
1.1 billion), the UAE (USD 1 billion), Cayman Islands (USD 676 million), the Netherlands
(USD 667 million), Japan (USD 551 million), and Germany (USD 191 million
✓ Inflows rose in computer software and hardware (USD 5.4 billion), services (USD 3.28
billion), trading (USD 506 million), telecommunication (USD 24 million), automobile (USD
1.29 billion), construction development (USD 75 million), non-conventional energy (USD 1.14
billion) and chemicals (USD 140 million) during April-June quarter.
✓ The data also showed that Karnataka received the highest inflow of USD 5.69 billion during
the quarter. It was followed by Maharashtra (USD 5.36 billion), Tamil Nadu (USD 2.67
billion), Haryana (USD 1.03 billion), Gujarat (USD 1.2 billion), Delhi (USD 1 billion), and
Telangana (USD 395 million).

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 RBI The Game Changer Circular in August Month 2025

Q. In August the Reserve Bank of India (RBI) has set up a ____-member Regulatory Review Cell
(RRC), a dedicated internal mechanism, to streamline financial regulations and reinforce
systemic resilience.
A)15 B)20
C)30 D)10
Answer:- C
✓ In a significant stride towards regulatory reform, the Reserve Bank of India (RBI) has set up a
30 member Regulatory Review Cell (RRC), a dedicated internal mechanism, to streamline
financial regulations and reinforce systemic resilience
✓ Currently, RBI has about 8,000 regulations, circulars, master directions, and notifications, out
of which around 5,000 are obsolete or redundant.
✓ The RRC’s creation will support RBI’s plan to consolidate regulations into a refined, coherent
set of approximately 3,000 active regulations. In the first phase, it has identified 33 core
subjects where it will unify directives.
✓ It will assess regulations every 5–7 years, focusing on relevance, cost-benefit, consumer impact,
and regulatory gaps.
Q. The Reserve Bank of India (RBI) has eliminated the requirement for prior approval when
authorising Special Rupee Vostro Accounts (SRVAs). This guidelines were issued under the
section ___
A)10(4) and 11(1) of the FEMA Act 1999
B) 11(5) and 12(1) of the FEMA Act 2000
C) 10(5) and 13(1) RBI Act 1934
D) 22(1) and 12(2) Companies Act 1956
Answer:- A
✓ The Reserve Bank of India (RBI) has eliminated the requirement for prior approval when
authorising Special Rupee Vostro Accounts (SRVAs)
✓ “On a review, it has been decided to allow AD banks to open Special Rupee Vostro Accounts
(SRVAs) of overseas correspondent banks without referring to the Reserve Bank for approval,”
the release said.
✓ Previously, Indian banks acting as authorised dealers (ADs) were required to obtain RBI
permission before opening SRVAs for foreign correspondent banks.
✓ These directions are issued under sections 10(4) and 11(1) of the Foreign Exchange
Management Act (FEMA), 1999 (42 of 1999)
✓ SRVAs ( Special Rupee Vostro Accounts) serve as Indian rupee (INR) accounts at Indian
banks to facilitate invoicing, payment and settlement of exports and imports in Indian rupees.
✓ The SRVAs framework was originally introduced on July 11 , 2022.
Q. Which portal of The Reserve Bank of India (RBI) has received 3,454 complaints between April
2020 and March 2025 regarding the non-repayment of funds from various investment
schemes?
A) e-Kuber B) ChiRAG
C) Sachet D) PRAVAAH
Answer:- C

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 ✓ The Reserve Bank of India's SACHET portal received 3,454 complaints pertaining to the non-
repayment of money collected from various kinds of investment schemes between April 2020
and March 2025
✓ What is the Sachet Portal?
✓ It is a platform created by the RBI to gather information and complaints about entities that are
illegally accepting money or deposits through various investment schemes.
✓ It aims to protect investors by providing a secure and direct channel to report grievances and
illegal financial activities.
Q. In August monetary policy , The RBI's monetary policy committee voted to keep the policy
rate unchanged at ___ per cent.
A)5.25% B)5.50%
C)6.00% D)6.25%
Answer:- B
✓ Monetary Policy Statement, 2025-26 Resolution of the 56th Monetary Policy Committee
August 4 to 6, 2025

✓ After assessing the current and evolving macroeconomic situation, the MPC voted to maintain
the policy repo rate at 5.50 per cent.
✓ Consequently, the SDF rate under the liquidity adjustment facility (LAF) remains unchanged
at 5.25 per cent and the MSF rate and the Bank Rate at 5.75 per cent.
✓ Real GDP growth for 2025-26 has been retained at 6.5 %, with Q1 at 6.5 % Q2 at 6.7 %, Q3 at
6.6 %, and Q4 at 6.3 %. Real GDP growth for Q1:2026-27 is projected at 6.6%
✓ CPI inflation for 2025-26 is now projected at 3.1 % with Q2 at 2.1 per cent; Q3 at 3.1 per cent;
and Q4 at 4.4 per cent. CPI inflation for Q1:2026-27 is projected at 4.9 per cent
✓ All members decided to continue with the neutral stance
✓ The minutes of the MPC’s meeting will be published on August 20, 2025.
✓ The next meeting of the MPC is scheduled from September 29 to October 1, 2025
Q. As per the RBI, At least ___ banks are in the process of implementing the MuleHunter AI – a
tool to detect mule bank accounts - in next two months, in order to improve fraud detection.
A)12 B)15
C)18 D)20
Answer:- B
✓ At least 15 banks are in the process of implementing the MuleHunter AI – a tool to detect
mule bank accounts - in next two months, in order to improve fraud detection, Reserve Bank
of India's chief general manger (CGM) Suvendu Pati said on August 1.
✓ The banks that have implemented the MuleHunter AI include Canara Bank, Punjab National
Bank, Bank of India, Bank of Baroda, and AU Small Finance Bank.
✓ "Federal Bank, it will go live in some time. But all other banks are in the preparation stage,"
Pati said in a speech at Future Proof Forensics 2025 event of the Institute of Chartered
Accountants of India in Mumbai.
✓ RBI’s CGM added that with the AL/ML tool, Canara Bank has achieved an accuracy level of
95 percent in detecting mule accounts.
✓ Last year, Reserve Bank of India Innovation Hub (RBIH), a subsidiary of RBI, has developed
an artificial intelligence and machine learning (AI/ML) model called MuleHunter AI, to help
banks and financial institutions detect mule accounts amid rising concern around fraud.

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 Q. RBI Governor Sanjay Malhotra announced that a large number of Pradhan Mantri Jan Dhan
Yojana accounts have become due for re-KYC (Know Your Customer) updates, as the
government's flagship financial inclusion scheme completed ____
A) 9 years B) 11 years
C) 7 years D) 8 years
Answer:- B
✓ RBI Governor Sanjay Malhotra announced on Wednesday that a large number of Pradhan
Mantri Jan Dhan Yojana accounts have become due for re-KYC (Know Your Customer)
updates, as the government's flagship financial inclusion scheme completed 10 years
✓ Public sector banks are organising camps for re-KYC of Jan Dhan scheme account holders at
the panchayat level from July 1 to September 30
✓ Re-KYC is a simple process where one can update their personal and address details to keep
their records up to date with the bank where they have accounts.
✓ The Pradhan Mantri Jan Dhan Yojana (PMJDY) has completed 11 years as of August 2025,
as it was launched on August 28, 2014
✓ It is a government financial inclusion programme to ensure access to financial services,
namely, basic savings and deposit accounts, remittance, credit, insurance and pension in an
affordable manner.
✓ Under the scheme, a basic savings bank deposit (BSBD) account can be opened in any bank
branch or Business Correspondent (Bank Mitra) outlet, by persons not having any other
account.
✓ Rupay debit card is provided to the PMJDY accountholder. Accident insurance cover of Rs 2
lakh is available with RuPay card issued to the PMJDY account holders.
✓ Beneficiaries can avail overdraft facilities of up to ₹10,000
✓ PMJDY accounts are eligible for DBT, PMJJBY, PMSBY, APY, and MUDRA scheme.
Q. The Reserve Bank of India (RBI) has granted a non-deposit taking Non-Banking Financial
Company (NBFC) license to ___ , a new lending unit that will operate as part of the group's
expanded financial services platform
A) Equirus Group B) Medha Group
C) Wadhwa Group D) Mahime Group
Answer:- A
✓ Equirus Group, a leading full-service financial powerhouse, today announced it has received
the Reserve Bank of India's (RBI) approval to launch its non-deposit taking Non-Banking
Financial Company (NBFC) — Equirus Finance
✓ A Company must have a minimum Net Owned Fund (NOF) of ₹10 crore to be eligible for a
non-deposit-taking Non-Banking Financial Company (NBFC) license in India, as mandated by
the Reserve Bank of India (RBI) for new applicants since October 1, 2022.
Q. Starting from ____ the Reserve Bank of India (RBI) will roll out a new system to clear cheques
within a few hours—a big improvement from the current processing time of up to two working
days
A) October 4, 2025
B) September 30, 2025
C) November 1, 2025
D) December 1, 2025
Answer:- A

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 ✓ Starting October 4, 2025, the Reserve Bank of India (RBI) will roll out a new system to clear
cheques within a few hours—a big improvement from the current processing time of up to two
working days.
✓ Under the new system, cheques will be scanned, processed, and settled continuously during
business hours, instead of being cleared in batches. This means that the current T+1 clearing
cycle (where T is the day of cheque deposit) will be reduced to just a few hours
✓ Currently, the Cheque Truncation System (CTS) clears cheques in one or two working days,
depending on when they are deposited.
✓ How the transition will work ?
✓ Phase 1: October 4, 2025 – January 2, 2026
✓ Banks must confirm (approve or reject) cheques presented to them by 7:00 PM the same day.
✓ If a bank does not respond by 7:00 PM, the cheque will be automatically treated as approved
and included for settlement
✓ Phase 2: From January 3, 2026
✓ Cheques will need to be confirmed within 3 hours of being received by the bank.
✓ This directive is issued under Section 10 (2) read with Section 18 of Payment and Settlement
Systems Act, 2007 (Act 51 of 2007)
Q. What is the first E stands in RBI's FREE - AI framework ?
A) Enablement B) Ethical
C) Economy D) Employment
Answer:- B
✓ A committee set up by the RBI to develop a Framework for Responsible and Ethical
Enablement of Artificial Intelligence (FREE-AI)(headed by Pushpak Bhattacharya )in the
financial sector has recommended the establishment of shared infrastructure by regulated
entities (REs) to democratise access to data and compute, and for the creation of an Al
Innovation Sandbox.
✓ The panel submitted its report:-
✓ The committee has developed 7 sutras to serve as the foundational principles for AI ado ption.
Guided by the 7 sutras, the committee has recommended a forward-looking approach,
containing 26 actionable recommendations under six strategic pillars
✓ The report envisions a financial ecosystem where encouraging innovation is in harmony, and
not at odds, with mitigation of risk, the RBI said
✓ The FREE-AI framework — short for Framework for Responsible and Ethical Enablement of
AI — is built around seven “Sutras” and six strategic pillars. Taken together, they are intended
to guide how regulated entities design, deploy and govern artificial intelligence.
✓ The 7 sutras include:-
1. Trust is the Foundation,
2. People First
3. Innovation over Restraint [Link] and Equity
4. Accountability
5. Understandable by Design and
6. Safety, Resilience and Sustainability
✓ Six strategic pillars are :-
✓ Three are enablers of innovation, (infrastructure, policy, and capacity,) and three are risk
mitigators, (governance, protection, and assurance)

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 Q. In August ____ secures payment aggregator licence from RBI under the payment and
settlement System Act 2007
A) Google Pay B) BharatPe
C) Paytm D) PhonePe
Answer:- C
✓ Paytm secures payment aggregator licence from RBI under the payment and settlement
System Act 2007
✓ To become a payment aggregator in India, a non-bank entity must have a minimum net worth
of ₹15 crore at the time of application, and this must increase to ₹25 crore within three years of
receiving authorization, and be maintained thereafter
Q. The RBI granted___ Payments, in-principle approval in August 2025 to act as an Online
Payment Aggregator under the Payment and Settlement Systems (PSS) Act, 2007.
A) IRCTC B) IRFC
C) RVNL D) CONCOR
Answer:- A
✓ The RBI granted IRCTC Payments, an IRCTC( Indian Railway Catering and Tourism
Corporation) subsidiary, in-principle approval in August 2025 to act as an Online Payment
Aggregator under the Payment and Settlement Systems (PSS) Act, 2007, enabling it to hand le
and settle online transactions for merchants without relying on third-party aggregators
Q. The RBI has permitted foreign entities with Special Rupee Vostro Accounts (SRVAs) to invest
their surplus rupee balances into Central Government securities and Treasury Bills, removing a
previous limit of ____
A)15% B)20%
C)25% D)30%
Answer:- D
✓ The Reserve Bank of India (RBI) now permits foreign entities with Special Rupee Vostro
Accounts (SRVAs) to invest their surplus Indian rupee balances into central government
securities.
✓ This initiative, introduced to promote the internationalization of the Indian Rupee, aims to
boost bilateral trade settlements in local currencies by allowing these rupee funds to earn
sovereign returns instead of remaining idle
✓ A previous limit restricting the use of only 30% of the balance for investing in short -term
securities has been lifted, allowing the entire surplus to be invested.
✓ The policy aims to enhance the utility and demand for the Indian rupee in international trade
and attract more foreign capital into Indian government debt.
✓ The RBI has approved 123 correspondent banks from 30 trading partner countries to open 156
SRVAs with 26 Indian banks to promote bilateral trade in local currencies
Q. The tenure of a Sovereign Gold Bond (SGB) is 8 years, but it allows for premature redemption
after the ___ year on dates when interest is payable.
A)4th B)5th
C)6th D)7th
Answer:- B
✓ About the Sovereign Gold Bond Scheme
✓ Sovereign Gold Bond Scheme (SGB) was launched by Government of India in 2015. SGBs are
government securities denominated in grams of gold. They are substitutes for holding physical

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 gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on
maturity.
✓ Who issues SGB?: The Bond is issued by Reserve Bank on behalf of Government of India.
✓ Tenor: The tenor of the Bond will be for a period of 8 years with exit option from 5th year to
be exercised on the interest payment dates.
✓ Denomination: multiples of gram(s) of gold with a basic unit of 1 gram.
✓ Minimum Limit: 1 gram of gold
✓ Maximum limit: 4 KG for individual, 4 Kg for HUF and 20 Kg for trusts
✓ Issue price: Price of Bond will be fixed in Indian Rupees on the basis of simple average of
closing price of gold of 999 purity published by the India Bullion and Jewellers Association
Limited.
✓ The issue price of the Gold Bonds will be ₹ 50 per gram less for those who subscribe online
and pay through digital mode
✓ The Gold Bonds will be issued as Government of India Stocks under Government Securities
Act, 2006
✓ The Bonds bear interest at the rate of 2.50 per cent (fixed rate) per annum on the amount of
initial investment. Interest will be credited semi-annually to the bank account of the investor
and the last interest will be payable on maturity along with the principal.
✓ Payment can be made through cash (upto ₹ 20000)/cheques/demand draft/electronic fund
transfer.
Q. In August, the Reserve Bank of India fined a penalty of Rs.75 lakh on which bank for non
compliance with certain directions?
A) HDFC Bank B) State Bank of India
C) ICICI Bank D) Punjab National Bank
Answer:- C
✓ The Reserve Bank of India (RBI) has,
✓ imposed a monetary penalty of ₹75.00 lakh on ICICI Bank Limited (the bank) for non-
compliance with certain directions issued by RBI on ‘Valuation of Properties - Empanelment
of Valuers’ and ‘Opening of Current Accounts by Banks – Need for discipline’.
✓ The bank did not carry out valuation of properties by independent valuers in certain mortgage
loans.
✓ The bank opened / maintained certain current accounts in contravention of extant regulatory
requirements.
✓ This penalty has been imposed in exercise of powers conferred on RBI under the provisions of
Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949
Q. The Reserve Bank of India’s draft circular released which proposes to significantly ease the
claim settlement process following the death of an account holder. As per the circular , in cases
of delay in processing claims with regard to safe deposit locker or articles in safe custody, the
bank shall be required to pay compensation at the rate of Rs____ for each day of delay.
A) Rs. 2,000 B) Rs. 5,000
C) Rs. 1,000 D) Rs. 10,000
Answer:- B
✓ On August 6, 2025, the RBI released a draft circular, 'Reserve Bank of India (Settlement of
Claims in respect of Deceased Customers of Banks) Directions, 2025,' and also announced in
its Statement on Developmental and Regulatory Policies a review of its guidelines for settling
claims of deceased bank depositors.

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 ✓ The proposed guidelines, applicable to all commercial banks and co-operative banks, cover
deposit accounts, lockers and articles in safe custody
✓ Banks must release funds to nominees or surviving account holders without insisting on legal
documents like succession certificates or probate, provided there is no will, court order or
dispute
✓ In cases of delay attributable to the bank, compensation shall be paid to claimants by the bank
in the form of interest, at a rate not less than the prevailing bank rate + 4% per annum, on the
settlement amount due for the period of delay
✓ In cases of delay in processing claims with regard to safe deposit locker or articles in safe
custody, the bank shall be required to pay compensation at the rate of Rs 5,000 for each day of
delay.
✓ For settlement of such claims, a bank, based on its risk management systems, must fix a
threshold limit of Rs 15 lakh.
✓ They will also be required to settle claims within 15 days of receiving complete
documentation.
✓ In case of safe deposit locker/articles in safe custody, the bank shall, within 15 days of receipt
of all requisite documents, process the claim and issue communication to the claimant for
fixing the date for taking inventory of the locker/articles in safe custody.
✓ The RBI expects the revised regulations to come into effect by January 1, 2026, after
considering all the public feedback received.
Q. The Central Bank of the UAE (CBUAE) has suspended the motor insurance operations of
state-owned ____ in Dubai due to non-compliance with regulatory requirements in the
country.
A) Oriental Insurance Company (OIC)
B) HDFC ERGO General Insurance Company Limited
C) Reliance General Insurance Company Limited
D) Bajaj Allianz General Insurance Company Limited
Answer:- A
✓ The Central Bank of the UAE (CBUAE) suspended Oriental Insurance Company (OIC)'s
motor insurance operations in Dubai in August 2025 for failing to provide a required AED 100
million statutory bank guarantee and other non-compliance with solvency requirements
✓ OIC has decided to place its Dubai operations in run-off mode. The branch, which began
operations in 1960, generated a total business of Rs 296 crore in 2024.
✓ In insurance business, run off means the company(OIC) will continue to service the liabilities
of existing and old policies till they are valid but can’t undertake new business.
Q. The Reserve Bank of India (RBI) has sanctioned the scheme of amalgamation of fraud-hit New
India Co-operative Bank (NICB) with Saraswat Co-operative Bank (SCB).The scheme will
come into force with effect from ___
A) August 4 , 2025 B) August 15, 2025
C) August 10, 2025 D) August 20 , 2025
Answer:- A
✓ The Reserve Bank of India (RBI) has sanctioned the scheme of amalgamation of fraud -hit
New India Co-operative Bank (NICB) with Saraswat Co-operative Bank (SCB).
✓ The scheme will come into force with effect from August 4, with all the branches of NICB
functioning as SCB’s branches with effect from this date.

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 ✓ Customers, including depositors of NICB, will be treated as customers of Saraswat Bank with
effect from 4th August, 2025 and their interests will be fully protected.
✓ With the latest acquisition, Mumbai-based SCB has made its eighth acquisition of a stressed
urban co-operative bank (UCB) over two decades.
✓ The RBI sanctioned the scheme under Section 44A of the Banking Regulation Act, 1949.
Q. The Reserve Bank of India (RBI) has issued the Co-Lending Arrangements Directions, 2025,
establishing a comprehensive regulatory framework for co-lending partnerships between
regulated entities (REs). The direction will come into effect from ____
A) September 30, 2025 B) October 1, 2025
C) November 1, 2025 D) January 1, 2026
Answer:- D
✓ The Reserve Bank of India (RBI) has issued the Co-Lending Arrangements Directions, 2025,
establishing a comprehensive regulatory framework for co-lending partnerships between
regulated entities (REs)
✓ These Directions shall be applicable to co-lending arrangements (CLAs)entered into by the
following REs:-
✓ >Commercial Banks (excluding Small Finance Banks, Local Area Banks and Regional Rural
Banks);
✓ >All-India Financial Institutions; and
✓ >Non-Banking Financial Companies (including Housing Finance Companies).
✓ This framework significantly expands the scope beyond priority sector lending to cover all
lending activities, while introducing key operational requirements, including a minimum 10%
retention by each RE, mandatory transfer within 15 calendar days
✓ The directions also introduce provisions for Default Loss Guarantee (DLG) up to 5% and
unified borrower-level asset classification across partner REs, marking a substantial evolution
from the previous 2020 framework.
✓ The Co-Lending Directions 2025 shall come into force from January 1, 2026, or from any
earlier date as decided by a RE as per its internal policy.
✓ These Directions are issued in exercise of the powers conferred by the Sections 21 and 35A of
the Banking Regulation Act, 1949, read with Section 56 of the Act ibid; Chapter IIIB of the
Reserve Bank of India Act, 1934; and Sections 30A, 32 and 33 of the National Housing Bank
Act, 1987
Q. RBI 7 member internal working group reviewing the liquidity management framework (LMF)
has recommended retaining the overnight Weighted Average Call Rate (WACR) as the
operating target and phasing out the 14 day variable rate repo and variable rate reverse repo
auctions. The 7-member internal working group was Chaired by __
A) Rajiv Ranjan B) Radha Shyam Ratho
C) Poonam Gupta D) Ajay Kumar
Answer:-C
✓ The Reserve Bank of India’s (RBI) internal working group reviewing the liquidity management
framework (LMF) has recommended retaining the overnight Weighted Average Call Rate
(WACR)
✓ It was headed by RBI deputy governor Poonam Gupta
✓ The Group recommends that 14-day VRR/VRRR auctions may
✓ be discontinued as the main operation. Instead, the transient liquidity may be managed
primarily through 7-day repo/ reverse repo operations and other operations of tenors from

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 overnight up to 14-days at the discretion of the Reserve Bank based on its assessment of the
system liquidity requirement.
✓ The Group recommends continuation of the existing corridor system with policy repo rate at
the middle of the corridor. The corridor would remain symmetric, with SDF and MSF, which
are 25 bps on either side of the policy repo rate, acting as the lower and upper bounds of the
corridor system, respectively.
✓ The Group recommends the Reserve Bank to retain the extant daily minimum requirement of
90 per cent of the prescribed CRR( Cash reserve Ratio).
Q. The Reserve Bank of India (RBI) announced a major upgrade to its Retail Direct platform,
allowing individual investors to invest in treasury bills (T-Bills) through SIPs. What does P
stands in SIP ?
A) Plan B) Premium
C) Protocol D) Permanent
Answer:- A
✓ The Reserve Bank of India (RBI) announced a major upgrade to its Retail Direct platform,
allowing individual investors to invest in treasury bills (T-Bills) through Systematic Investment
Plans (SIPs)
✓ Under the new upgrade, retail investors can now participate in automatic periodic investments
in T-Bills, similar to mutual fund SIPs
✓ About RBI Retail Direct Scheme:-
✓ Retail Direct Scheme is a one-stop solution to facilitate investment in Government Securities
by individual investors. The scheme was introduced in November 2021. Under this scheme
individual retail investors can open a Gilt Securities Account – “Retail Direct Gilt (RDG)”
account with RBI.
✓ What are the kinds of Government securities that I can invest in through the Retail Direct
platform?
✓ >Government of India Treasury Bills (T-Bills)
✓ >Government of India dated securities (dated G-Sec)
✓ >State Development Loans (SDLs)
✓ >Sovereign Gold Bonds (SGB)
✓ Retail investors, that is, individuals (natural persons) are allowed to open an RDG account.
✓ Also Non-Resident retail investors are eligible to invest in Government Securities under
Foreign Exchange Management Act, 1999.
✓ An individual can open only one RDG account. The second holder in a joint RDG account
may also open an individual RDG account
✓ The RDG account can be opened singly or jointly with another retail investor who meets the
eligibility criteria.
✓ An investor can add a maximum of two nominees to their Retail Direct Gilt (RDG) account.
✓ Investment Range: Bidding starts from INR 10,000, the upper limit is set at INR 2 crores per
assets
✓ For Sovereign Gold Bonds (SGBs) – An individual may not subscribe to more than 4 kg of
SGBs per fiscal year
✓ The RBI Retail Direct Scheme allows investors to buy government securities (G-Secs) with
maturity periods ranging from short-term (Treasury Bills) to long-term (bonds up to 40 years).
Specifically, Treasury Bills have a maturity of under 365 days, while Government bonds can
range from 1 to 40 years. State Development Loans (SDLs) can have maturities up to 10 years.

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 ✓ RDG Account can be opened and maintained with RBI free of cost.
Q. The Reserve Bank of India has decided to grant 'in-principle’ approval to AU Small Finance
Bank Limited (AUSFB) for transitioning from a Small Finance Bank (SFB) to a Universal
[Link] transition into a universal bank, a Small Finance Bank (SFB) must maintain a
minimum net worth of ₹___ crore as of the end of the previous quarter
A) 500 Crore B) 300 Crore
C) 1000 Crore D) 200 Crore
Answer:- C
✓ The Reserve Bank of India has decided to grant 'in-principle’ approval to AU Small Finance
Bank Limited (AUSFB) for transitioning from a Small Finance Bank (SFB) to a Universal
Bank.
✓ With the objective of bringing better clarity, the eligibility criteria for an SFB to transition into
a Universal bank will now be as follows::-
✓ >scheduled status with a satisfactory track record of performance for a minimum period of five
years;
✓ >shares of the bank should have been listed on a recognised stock exchange;
✓ >having a minimum net worth of ₹1,000 crore as at the end of the previous quarter (audited);
✓ >meeting the prescribed CRAR requirements for SFBs;( which is a minimum of 15% on a
continuous basis)
✓ >having a net profit in the last two financial years; and
✓ >having GNPA and NNPA of less than or equal to 3 percent and 1 percent respectively in the
last two financial years
✓ The following conditions shall be applicable with regard to shareholding pattern:
✓ There is no mandatory requirement for an eligible SFB to have an identified promoter.
However, the existing promoters of the eligible SFB, if any, shall continue as the promoters on
transition to Universal Bank.
✓ Addition of new promoters or change in promoters shall not be permitted for an eligible SFB
while transitioning to Universal Bank.
✓ There shall be no new mandatory lock-in requirement of minimum shareholding for existing
promoters in the transitioned Universal Bank.
✓ There shall be no change to the promoter shareholding dilution plan already approved by the
Reserve Bank.
✓ The eligible SFBs having diversified loan portfolio will be preferred.
Q. ___ and Reserve Bank of India (RBI) have undertaken various interventions to promote
financial literacy and awareness of rural population, including microfinance borrowers.
A) SEBI B) NABARD
C) PFRDA D) IFSCA
Answer:- B
✓ NABARD has been providing financial support for conduct of Financial and Digital Literacy
Camps through rural bank branches and Financial Literacy Centres (FLCs) in areas with
limited awareness
✓ Centre for Financial Literacy (CFL) Project has been initiated by RBI since 2017 with an
objective to adopt community-led innovative and participatory approaches to financial
literacy. A total of 2,421 CFLs have been set up across the country as on March 31, 2025 with
one CFL covering three blocks on an average

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 ✓ The following steps have been taken by RBI for enabling ease of access to credit (in the
microfinance sector):
✓ The definition of microfinance loan has been simplified and various quantitative restrictions on
loans given by NBFC-MFIs have been removed, including limits on loan amount in a
particular cycle and minimum tenure for loans over a particular threshold.
✓ Presently, all collateral-free loans given to a household having annual household income up to
₹3,00,000 are considered as microfinance loans.
✓ Erstwhile requirement of providing minimum 50% loans for income generation purposes has
been dispensed with, considering the need of credit for medical, educational and income
smoothening purposes
✓ The RBI has strengthened borrower protection by capping monthly loan repayments at 50% of
monthly income to prevent over-indebtedness and mandating regulated recovery processes,
including a dedicated grievance redressal mechanism for recovery-related complaints.
Q. Sanjay Malhotra, governor of the Reserve Bank of India, announced ____ schemes aimed at
boosting financial inclusion among consumers during his address after the conclusion of the
August Monetary Policy Committee (MPC) meeting.
A) 3 B)4
C)2 D)5
Answer:- A
1. Re-KYC services at doorstep:- :
✓ As the Pradhan Mantri Jan Dhan Yojana has completed 10 years, most of the accounts are
due for Re-KYC. For the same, banks will set up camps at the Panchayat level from July 1 to
September 30, in an effort to provide re-KYC services at the doorstep of consumers
2. Simplified settlement for deceased customers:-
✓ To ease the burden on grieving families, the RBI is working to standardise and streamline the
process for settling bank accounts and locker contents after the death of a customer. “It will
make the claims more convenient and simpler
3. Expanding functionality of RBI Retail:-
✓ The central bank now plans to enable Systematic Investment Plans (SIPs) for treasury bills,
making it easier for small investors to invest regularly in short-term sovereign debt
Q. The Reserve Bank of India (RBI) has reported that generative artificial intelligence (AI) could
enhance banking operations in the country by up to ___ per cent.
A)30% B)40%
C)46% D)50 %
Answer:- C
✓ The Reserve Bank of India (RBI) has reported that generative artificial intelligence (AI) could
enhance banking operations in the country by up to 46 per cent. The technology can help
financial institutions analyse customer behaviour, increase operational efficiency, and deliver
personalised services on a large scale
✓ Globally, AI adoption in financial services is rising. In India, the generative AI segment alone
is projected to exceed about US$12 billion by 2033, with an annual growth rate of 28–34 per
cent.
✓ The RBI concludes that effective use of AI can make banking in India more efficient, inclusive,
and growth-oriented.

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 Q. Reserve Bank of India (RBI) has enhanced Partial Credit Enhancement (PCE) rules to broaden
infrastructure financing by allowing more entities, including co-operative banks and
development finance institutions, to provide the facility. Effective from ____
A) January 1,2026 B) November 1, 2025
C) April 1, 2026 D) February 1, 2026
Answer:- C
✓ Reserve Bank of India (RBI) has enhanced Partial Credit Enhancement (PCE) rules to broaden
infrastructure financing by allowing more entities, including co-operative banks and
development finance institutions, to provide the facility.
✓ Effective April 1, 2026, the maximum PCE for a bond issue has increased from 20% to 50%,
improving the creditworthiness of debt securities for investors.
✓ Expanded Applicability: The framework allows PCE(Partial Credit Enhancement )for bonds
issued for various types of projects and by non-deposit taking NBFCs with an asset size of at
least ₹1,000 crore.
✓ A bank must maintain ₹4.5 crore in capital for a ₹50 crore Partial Credit Enhancement (PCE)
to a BBB-rated bond, as this requires 100% risk weight, resulting in ₹50 crore in Risk Weighted
Assets (RWAs) which, at a 9% Capital to Risk-Weighted Assets Ratio (CRAR)
Q. In Financial Year (FY) 2025, Indian mutual funds' foreign liabilities rose by 19.9% to ₹2.6 lakh
crore, primarily due to increased units purchased by non-residents, according to a Reserve
Bank of India (RBI) study. Non-residents from the ___ held the largest portion of these units,
followed by the U.S. and the U.K
A) UAE B) Mauritius
C) Singapore D) Saudi Arabia
Answer:- A
✓ In Financial Year (FY) 2025, Indian mutual funds' foreign liabilities rose by 19.9% to ₹2.6 lakh
crore, primarily due to increased units purchased by non-residents, according to a Reserve
Bank of India (RBI) study.
✓ The United Arab Emirates had the largest share of investors in Indian MFs, amounting to
1/5th of the total market value, which is about Rs. 52,549 crore. Investors from the U.S. and
U.K. together accounted for another 20%, totalling a market value of about Rs. 10,900 crore.
✓ Investment from Australia and Canada grew the fastest at a rate of more than 40% in the past
year.
Q. The Reserve Bank of India (RBI) approved the nomination of Executive Director ____ as an ex
officio member of the Monetary Policy Committee (MPC).
A) Rajiv Gauba B) Rajiv Ranjan
C) Pushpak Bhattacharya D) Indranil Bhattacharya
Answer:- D
✓ The Reserve Bank of India (RBI) approved the nomination of Executive Director Indranil
Bhattacharyya as an ex officio member of the Monetary Policy Committee (MPC).
✓ He replaces Rajiv Ranjan, the outgoing MPC member, who was due to retire before the
October policy meeting. Bhattacharyya recently took charge as Executive Director of the RBI’s
Monetary Policy Department, succeeding Ranjan.
✓ The decision was made during the 618th meeting of the Central Board of Directors of the RBI
in Lucknow under the chairmanship of Governor Sanjay Malhotra.
✓ ABOUT MPC :-

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 ✓ The Finance Act, 2016 amended the Reserve Bank of India Act, 1934, to introduce a statutory
framework for the Monetary Policy Committee.
✓ Section 45ZB of the RBI Act, 1934, empowers the Central Government to establish the MPC.
✓ The MPC's primary role is to determine the policy interest rate (repo rate) to achieve India's
inflation target while also considering economic growth
✓ The committee consists of three internal RBI members and three external members appointed
by the Central Government. :---
✓ Internal RBI Members:-
1. The Governor of the Bank—Chairperson- Sanjay Malhotra
2. Deputy Governor of the Bank, in charge of Monetary Policy—Member- Poonam Gupta
3. One officer of the Bank to be nominated by the Central Board—Member - Indranil
Bhattacharya
✓ External Members (Appointed by the Government) :-
1. Dr. Nagesh Kumar( Member)
2. Shri Saugata Bhattacharya and
3. Professor Ram Singh
✓ The term for the government-nominated external
✓ members is four years.
✓ The MPC must hold a minimum of four meetings each year.
✓ A quorum, which is the minimum number of members required for a meeting to be valid, is
four members.
✓ At least one of these four members must be the Governor, or in their absence, the Deputy
Governor who is a member of the MPC.
✓ The minutes of each meeting, including the voting of individual members, are published 14
days after the meeting concludes.
✓ The Urjit Patel Committee recommended a committee-based approach to decision-making to
bring greater transparency and accountability to monetary policy, a key factor in the
establishment of the six-member MPC in 2016.
✓ The committee also suggested a 4% inflation target with a +/- 2% tolerance band and a six-
member committee structure.
Q. In August , Yes Bank announced that Japan's SMBC had secured approval from the Reserve
Bank of India (RBI) to raise its shareholding to as much as ____
A)25.44% B)24.99%
C)20.25% D)30.12%
Answer:- B
✓ The Reserve Bank of India (RBI), through its letter dated 22nd August 2025, has approved
Japan’s Sumitomo Mitsui Banking Corporation’s (SMBC) proposal to acquire up to 24.99% of
private sector Yes Bank’s paid-up share capital/voting rights.
✓ This approval will remain valid for one year
✓ The approval is subject to compliance with the Banking Regulation Act, 1949, RBI’s Master
Directions and Guidelines on Acquisition and Holding of Shares or Voting Rights in Banking
Companies (issued on 16th January 2023 and updated from time to time), the Foreign
Exchange Management Act, 1999
✓ Yes Bank had on May 09, 2025, informed the stock exchanges of the proposed acquisition by
SMBC of 20.00% shareholding in the Bank through a secondary stake purchase of 13.19%
stake from the State Bank of India and an aggregate of 6.81% stake from seven other

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 shareholders of the bank, i.e., Axis Bank Ltd, Bandhan Bank Ltd, Federal Bank Ltd, HDFC
Bank Ltd, ICICI Bank Ltd, IDFC First Bank Ltd and Kotak Mahindra Bank Ltd.
✓ As of March, 2024, SBI held 23.97% stake in Yes Bank. Out of the recently
✓ State Bank of India completed the sale of a 13.19% stake in Yes Bank to Japan's Sumitomo
Mitsui Banking Corporation for Rs 8,888.97 crore. Following the divestment, SBI will
continue to hold 10.8 percent stake in Yes Bank
Q. RBI has granted 'in- principle' approval to Aditya Birla Capital Digital (ABCD), the digital arm
of Aditya Birla Capital, to act as an online payment aggregator under the payment and
settlement System Act 2007. Once fully licensed, a payment aggregator must maintain a
minimum net worth of ₹___ crore at all times
A) 5 Crore B)10 Crore
C)15 Crore D)20 Crore
Answer:- C
✓ Aditya Birla Capital Digital, has received an ‘in-principle’ authorisation from the Reserve
Bank of India (RBI) to operate as an online payment aggregator.
✓ Aditya Birla Capital Digital Limited, a Subsidiary of the Company, to operate as an Online
Payment Aggregator under the Payment and Settlement Systems Act, 2007
✓ An entity seeking authorisation to commence or carry on PA business shall have a minimum
net-worth of ₹15 crore at the time of tendering application for authorisation; and shall attain a
minimum net-worth of ₹25 crore by the end of the third financial year of grant of authorisation
Q. Former ___ th Reserve Bank of India Governor Urjit Patel has been appointed as executive
director at the International Monetary Fund.
A)18th B)20th
C)22nd D)24th
Answer:- D
✓ Former 24th Reserve Bank of India Governor Urjit Patel has been appointed as executive
director at the International Monetary Fund.
✓ Patel was appointed as India's Executive Director (ED) at the International Monetary Fund
(IMF) for a three-year term, replacing K.V. Subramanian. He will be representing India, which
is part of a four-country constituency along with Bangladesh, Sri Lanka, and Bhutan.
✓ As an ED, Patel will be part of the Executive Board of the IMF, which is comprised of 25
directors.
✓ He took over as the RBI Governor from Raghuram Rajan in September 2016 and resigned
from the post in December 2018, citing personal reasons.
✓ Patel has been serving as chairman of New Delhi-based National Institute of Public Finance
and Policy since June 2020. The IMF post has been lying vacant since April 30, following the
removal of Subramanian, a former chief economic advisor to the finance ministry, six months
before the end of his term
✓ Patel has also served as vice-president of the Beijing-based Asian Infrastructure Investment
Bank (AIIB).
✓ Named as Raghuram Rajan's successor, Patel was the first RBI Governor to decide on
monetary policy and interest rates as part of a committee, following the formation of the
Monetary Policy Committee in October 2016
✓ Mr. Patel was the first RBI Governor since 1990 to step down before completion of his tenure.

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 Q. The Reserve Bank of India (RBI) has announced that one product has successfully exited the
Fifth Cohort of the Regulatory Sandbox (RS), which was conducted under the theme ____
A) Msme Lending B) Digital Payment
C) Neutral D)
Answer:- C
✓ The Reserve Bank of India (RBI) has announced that one product has successfully exited the
Fifth Cohort of the Regulatory Sandbox (RS), which was conducted under the theme
“Neutral”
✓ Starting April 9, 2025, the Reserve Bank of India (RBI) allows "on-tap" applications for
Theme-Neutral testing under its Regulatory Sandbox (RS) through the PRAVAAH portal,
following the updated Enabling Framework from February 28, 2024
✓ According to the RBI press release dated August 14, 2025, the product found viable is a
blockchain-based deep-tier financing solution developed by Indian Banks’ Digital
Infrastructure Company (IBDIC) Private Limited, in partnership with ICICI Bank, HDFC
Bank, Yes Bank, and Aditya Birla Capital Limited.
✓ The entity has now exited the sandbox after completing the Test Phase
✓ Following this, on July 26, 2024, the RBI announced that it had received 22 applications and
shortlisted five entities to commence testing in August last year. These included:
1. Connectingdot Consultancy Pvt. Ltd.
2. Epifi Technologies Pvt. Ltd.
3. Finagg Technologies Pvt. Ltd.
4. Indian Banks’ Digital Infrastructure Company (IBDIC) Pvt. Ltd.
5. Signzy Technologies Pvt. Ltd.
✓ Out of these five entities, evaluators found IBDIC’s product viable, and the company has
exited the sandbox.
✓ RBI launched the Regulatory Sandbox in 2019 to allow fintech firms and regulated entities to
test new digital products or services in a controlled environment with regulatory oversight.
✓ Here are the RBI's five Regulatory Sandbox cohorts:-
1. Retail Payments
2. Cross Border Payments
3. MSME Lending
4. "Prevention and Mitigation of Financial Frauds"
5. Theme - Neutral
Q. Which bank was authorized by the Reserve Bank of India (RBI) to manage the Maharashtra
government's receipts through the Government Receipt Accounting System (GRAS) portal?
A) Axis Bank
B) ICICI Bank
C) Hdfc Bank
D) Federal Bank
Answer:- D
✓ Federal Bank was authorized by the Reserve Bank of India (RBI) to manage the Maharashtra
government's receipts through the Government Receipt Accounting System (GRAS) portal.
✓ This authorization allows Federal Bank to process payments for state dues, such as stamp
duties, and other government revenue.

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 Q. The Reserve Bank of India fined how much penalty on Bandhan Bank for contravention of
section 10(1)(b)(ii) of the Banking Regulation Act, 1949 (BR Act), and non-compliance with
certain directions issued by RBI ?
A) Rs. 29 Lakh B) Rs. 44. 70 Lakh
C) Rs. 39 Lakh D) Rs. 65 Lakh
Answer:: B
✓ The Reserve Bank of India (RBI) has, by an order dated August 26, 2025, imposed a monetary
penalty of ₹44.70 lakh on Bandhan Bank Limited (the bank) for contravention of section
10(1)(b)(ii) of the Banking Regulation Act, 1949 (BR Act), and non-compliance with certain
directions issued by RBI on ‘Automation of Income Recognition, Asset Classification and
Provisioning processes in banks’.
✓ This penalty has been imposed in exercise of powers conferred on RBI under the provisions of
section 47 A (1) (c) read with section 46 (4) of the BR Act.
Q. The Reserve Bank of India (RBI) has fined Ayodhya Finlease Ltd ____ lakh for failing to
comply with certain directions of the Master Direction - Non-Banking Financial Company and
the RBI (Non-Banking Financial Company - Scale Based Regulation) Directions, 2023.
A) Rs. 5 Lakh B) Rs. 10 Lakh
C) Rs. 1 Lakh D) Rs. 2 Lakh
Answer:- C
✓ The Reserve Bank of India (RBI) has fined Ayodhya Finlease Ltd ₹1 lakh for failing to comply
with certain directions of the Master Direction - Non-Banking Financial Company and the
RBI (Non-Banking Financial Company - Scale Based Regulation) Directions, 2023.
✓ The penalty, issued in August 2025, was for specific failures, including not obtaining prior RBI
approval for changes in shareholding exceeding 26%
✓ This penalty has been imposed in exercise of powers conferred on RBI under the provisions of
Section 58G(1)(b) read with Section 58B(5)(aa) of the Reserve Bank of India Act, 1934.
Q. The Reserve Bank of India (RBI) Wednesday issued draft norms on Counterparty Credit Risk
(CCR) for ___ acting as clearing members at exchanges in equity and commodity derivatives.
A) Banks B) Nbfcs
C) HFC D) State Governments
Answer:- A
✓ The Reserve Bank of India (RBI) Wednesday issued draft norms on Counterparty Credit Risk
(CCR) for banks acting as clearing members at exchanges in equity and commodity
derivatives.
✓ Applicable on All Scheduled Commercial Banks (excluding Payments Banks and Regional
Rural Banks)
✓ Accordingly, in exercise of the powers conferred by section 35A of the Banking Regulation
Act, 1949 and all other provisions of this Act or any other laws enabling the Reserve Bank to
issue instructions in this regard
✓ These norms apply specifically to banks involved in equity and commodity derivatives
segments, which are inherently subject to higher market volatility
✓ The new norms have higher risk weights for longer-tenor and more volatile instruments such
as commodities and equities.
✓ The new proposed norms have the add-on factors used in the Current Exposure Method
(CEM) for calculating Potential Future Exposure (PFE).

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 ✓ This move aims to align domestic norms with global Basel standards, enhancing risk
sensitivity and regulatory clarity
✓ It also differs as per the tenor of the contract up to one year, between one and five years, and
above 5 years.
✓ The add-on factors on interest rate contracts range from 0.25% to 1.50%, for exchange rate and
gold ranges from 1% to 7.50%, for equities from 6% to 10%, for precious metals, excluding
gold from 7% to 8% and for other commodities from 10% to 15%.
Q. Reserve Bank of India (RBI) stated in a latest update that bank deposits with Scheduled
Commercial Banks or SCBs registered a growth of ___ per cent as at end-June 2025 as
compared with that of 11.7 per cent (net of merger) a year ago
A) 10.5% B)11.3%
C)9.5% D) 10.25%
Answer:- B
✓ Reserve Bank of India (RBI) stated in a latest update that bank deposits with Scheduled
Commercial Banks or SCBs registered a growth (y-o-y) of 11.3 per cent as at end-June 2025 as
compared with that of 11.7 per cent (net of merger) a year ago
✓ The share of term deposits of size Rs. one crore and above inched up to 45.7 per cent in June
2025 as compared to 44.8 per cent a year ago. The share of Household deposits witnessed
modest decline in recent period to 59.9 per cent in June 2025
✓ Senior citizens owned 20.4 per cent of the total deposits as at end-June 2025
✓ Top five states / union territories (viz. Maharashtra, NCT of Delhi, Karnataka, Uttar Pradesh,
and Tamil Nadu) collectively accounted for 54.3 per cent of total deposits and 47.8 per cent of
Household deposits as at end-June 2025.
Q. This is a key regulatory requirement for Small Finance Banks in India: at least 50% of their
total loan portfolio must consist of loans and advances of up to ₹___ lakh
A)Rs. 10 Lakh B)Rs. 15 Lakh
C)Rs. 25 Lakh D)Rs. 20 Lakh
Answer:- C
Q. An Officially Valid Document (OVD) is a government-recognized document used for identity
and/or address verification, particularly for Know Your Customer (KYC) processes. Which
among the following is not considered as OVD ?
A) Passport
B)Driving Licence
C)Voter ID Card
D)Job Card issued by NREGA
E)Letter issued by the National Population Register
F)Aadhaar Card
G)All are OVD
Answer:- G
Q. Different periodicities have been prescribed for updation of KYC records depending on the risk
perception of the bank. KYC is required to be done once in every ____ years for high risk
customers
A) 1.5 Year B) 2 Years
C) 3 Years D) 4 Years
Answer:- B

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 ✓ KYC (Know Your Customer) update timelines depend on your risk profile: high-risk
customers must update every 2 years, medium-risk customers every 8 years, and low-risk
customers every 10 years from the last update or account opening.
✓ The Reserve Bank of India (RBI) has also extended the deadline for low-risk customers to
complete pending KYC updates until June 30, 2026, while their accounts will be under regular
monitoring.
Q. The Vishweshwar Sahakari Bank Ltd., ___ ” has been included in the Second Schedule of the
Reserve Bank of India Act, 1934.
A) Pune B) Delhi
C) Bengaluru D) Lucknow
Answer:: A
✓ The Vishweshwar Sahakari Bank Ltd., Pune ” has been included in the Second Schedule of the
Reserve Bank of India Act, 1934.
✓ The action was taken under the powers granted to the RBI by section 42(6)(a) of the Reserve
Bank of India Act, 1934.
✓ It becomes the 50th cooperative bank in India and 3rd from Pune to receive the Scheduled
Bank status from the RBI.
✓ A bank needs a minimum paid-up capital of Rs 5 lakh to be listed in the Second Schedule of
the Reserve Bank of India (RBI) Act, 1934 and gain Scheduled Bank status, but the RBI
recommends a higher capital of Rs 100 crore to operate as a commercial bank
✓ The scheduled primary (urban) cooperative banks are required to maintain with the Reserve
Bank of India an average daily balance, the amount of which should not be less than 5 per cent
of their net demand and time liabilities in India in terms of Section 42 of the Reserve Bank of
India Act, 1934.
✓ Non-scheduled (urban) cooperative banks, under the provision of Section 18 of Banking
Regulation Act, 1949 (As Applicable to Cooperative Societies) should maintain a sum
equivalent to at least 3 per cent of their total demand and time liabilities in India on day-to-day
basis.
✓ In addition to the cash reserve, every primary (urban) cooperative bank (scheduled/non-
scheduled) is required to maintain liquid assets in the form of cash, gold or unencumbered
approved securities which should not be less than 25 per cent of the total of its demand and
time liabilities in accordance with the provisions of Section 24 of the Banking Regulation Act,
1949 (As Applicable to Cooperative Societies)
✓ Last year RBI revised the eligibility norms for inclusion of UCBs in the Second Schedule to the
Reserve Bank of India Act, 1934 to bring them in conformity with the Revised Regulatory
Framework
✓ Eligible UCBs satisfying the following criteria shall be considered for inclusion in the Second
Schedule:
a) CRAR of at least 3 % more than the minimum CRAR requirement applicable to the UCB;
and
b) No major regulatory and supervisory concerns

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