RBI GK Questions 2026

Under the Reserve Bank's circular of 6 July 2017, where the fault lies neither with the bank nor with the customer but somewhere else in the system, the customer's liability is nil if the unauthorised transaction is reported within three working days of receiving the bank's communication about it.

The Central Repository of Information on Large Credits, usually shortened to CRILC, is a database maintained by the Reserve Bank in which banks report details of every borrower whose aggregate exposure, funded and non-funded together, is five crore rupees or more.

The systemic importance score of a bank is built from four indicators: size, interconnectedness, substitutability and complexity. Size carries the highest weight because the sheer scale of a bank's balance sheet decides how much damage its failure would do.

India applies Basel III with a stricter minimum: the capital to risk weighted assets ratio must be at least nine per cent, of which Common Equity Tier 1 must be at least 5.5 per cent and Tier 1 at least seven per cent.

The Board for Financial Supervision was constituted in November 1994 so that supervision of banks, select all-India financial institutions and non-banking financial companies would get undivided attention.

Withdrawal of PCA restrictions is considered when no parameter has breached a risk threshold across four continuous quarterly financial statements, and one of those four must be the audited annual financial statement.

The first set of mandatory actions, applied as soon as a bank crosses Risk Threshold 1, is a restriction on dividend distribution or remittance of profits, together with a requirement that the promoters, owners or the parent of a foreign bank infuse capital.

Under the revised framework the three indicators are the capital to risk weighted assets ratio or the Common Equity Tier 1 ratio for capital, the net non-performing assets ratio for asset quality, and the Tier 1 leverage ratio for leverage.

The revised framework applies to all scheduled commercial banks but expressly leaves out three categories: small finance banks, payments banks and regional rural banks.

In the 2025 list State Bank of India sits in bucket 4 and must hold an extra Common Equity Tier 1 cushion of 0.80 per cent of its risk weighted assets, over and above the normal minimum and the capital conservation buffer.

The PCA framework arranges breaches into three risk thresholds, each more serious than the last, and attaches mandatory corrective actions to each.

The 2017 framework watched capital, asset quality and profitability, with return on assets as the profitability indicator.

The Reserve Bank of India issued the D-SIB framework on 22 July 2014, setting out how banks would be picked for the sample, how their systemic importance score would be computed from size, interconnectedness, substitutability and complexity, and how much additional Common Equity Tier 1 capital each bucket would attract.

The committee headed by the industrialist Baba Kalyani submitted its report on the special economic zone policy in 2018, arguing that the zones should be judged by the economic activity and employment they create rather than by exports alone, and recommending a new framework of employment and economic enclaves serving…

A supply to a developer or a unit of a special economic zone for authorised operations is a zero-rated supply, so the supplier either pays the tax and claims a refund or supplies under a letter of undertaking without paying it, and in either case the credit of the tax…

The central obligation of a zone unit is a positive net foreign exchange earning, that is the value of its exports must exceed the value of its imports, measured over a block of five years counted from the date the unit begins production, and not year by year.

Under the Act of 2005 proposals for a zone go to the Board of Approval in the Department of Commerce, which the Commerce Secretary chairs and on which the revenue, finance and other departments are represented; below it each notified zone has a Development Commissioner and a Unit Approval Committee…

The Export Credit Guarantee Corporation, founded in 1957 and first called the Export Risks Insurance Corporation, insures an Indian exporter against the commercial risk of a buyer failing to pay and the political risk of war, exchange restrictions or a ban in the buyer's country, and it also guarantees the…

The Export-Import Bank of India was set up in 1982 under the Export-Import Bank of India Act of 1981, as the country's apex institution for financing and promoting foreign trade; it lends to exporters, finances overseas buyers of Indian goods and operates the lines of credit extended by the Government…

The Directorate General of Foreign Trade works under the Department of Commerce in that ministry; it issues the importer-exporter code without which no one can trade across the border, administers the Foreign Trade Policy, and exercises powers under the Foreign Trade (Development and Regulation) Act of 1992.