RBI GK Questions 2026

Section 22 of the Reserve Bank of India Act, 1934 confers on the Reserve Bank the sole right to issue banknotes in India, and the Issue Department of the Bank keeps this function separate from its banking business.

The Finance Minister announced Sovereign Green Bonds in the Union Budget speech of 1 February 2022, as part of the government's overall market borrowing.

This investment has been grounded across the eight northeastern states following the Rising North East Investors Summit held in May 2025.

Lowering the population floor lets banks open branches in smaller habitations, which matters in a region where settlements are scattered across hills.

Mr Scindia used this figure to argue that financial inclusion in the region has not yet turned into economic inclusion: deposits are being collected, but lending lags behind.

Union Minister for Development of North Eastern Region and Communications Jyotiraditya M. Scindia inaugurated the conclave there, with Mizoram Chief Minister Lalduhoma, State Minister Prof. Lalnilawma, MDoNER Secretary Srinivas Katikithala and NEC Secretary Satinder Kumar Bhalla present.

CAR is the cushion of a bank's own capital against losses from loans that are not repaid, and its minimum is fixed by the regulator, not by each bank.

The G20 was formed in 1999, not 2001, as a forum of Finance Ministers and Central Bank Governors. The Group of Twenty was set up in 1999 after the Asian financial crisis, so that finance ministers and central bank governors of major developed and emerging economies could meet regularly.

The Special Drawing Facility is short-term, secured lending to States, but it is cheaper than the repo rate and comes before ordinary WMA, not after it.

Ways and Means Advances are short-term loans from the RBI, and the scheme began in 1997. Governments often spend before their receipts arrive.

Import cover is the number of months of imports a country could pay for with its foreign exchange reserves. It is worked out by dividing a country's total international reserves by its average monthly import bill.

As lender of last resort, the RBI provides liquidity to banks facing a temporary crisis, so only statement 2 fits.

The word joins bank and assurance and describes the arrangement by which an insurer uses a bank branch network and customer base to sell policies while the bank earns fee income as a corporate agent or broker; it is a permitted para banking activity in India.

Para banking covers the financial services a bank may offer besides pure banking once the Reserve Bank of India allows it, such as distributing insurance policies and mutual fund units, equipment leasing, hire purchase, factoring, portfolio management and acting as a pension fund adviser, done departmentally or through a subsidiary.

Under the Reserve Bank of India directions on certificates of deposit, a certificate is issued for a minimum of ₹5 lakh to a single investor and thereafter in multiples of ₹5 lakh, which keeps the instrument in the hands of companies, trusts and institutions rather than small savers; it is…

A gold loan is a small, standardised, secured advance given to an individual against jewellery and belongs squarely to retail banking.

Under narrow banking a bank keeps taking deposits but parks them in short-term government securities instead of lending, so no new credit risk is created while its old bad loans are recovered or written off; the Tarapore Committee of 1997 suggested this for weak Indian banks.

Passed in 1933 after the stock market crash and the Great Depression, it stopped a deposit-taking commercial bank from doing securities business and also brought in federal deposit insurance, because lawmakers believed that speculation with depositors money had deepened the crisis.

Issue management, underwriting, book building and the rest of investment banking touch the securities market, which is SEBI domain, and a firm must hold a certificate of registration as a merchant banker under the SEBI (Merchant Bankers) Regulations, 1992; the lead manager to any public issue must be such a…

ICICI was set up as a development financial institution for long-term industrial finance, and in 2002 it merged into its own banking subsidiary ICICI Bank.