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RBI GK Questions 2026

The static part of RBI exams is mostly economics and finance. The Grade B advertisement lists the syllabus of Paper-I, Economic and Social Issues: growth and development, national income, poverty and employment, sustainable development, the Indian economy since the reforms of 1991, money and financial markets, the role of banks and the Reserve Bank, public finance, agriculture, industry and services, the balance of payments, the IMF, the World Bank and the WTO, and India's social structure. Paper-III, General Finance and Management, adds the functions of the RBI, the banking system, SIDBI, EXIM Bank, NABARD, NHB and NaBFID, financial markets, financial inclusion, the Union Budget and inflation. These topics also feed the General Awareness tests of Grade B Phase-I and the Assistant Main, alongside static facts such as the heads and headquarters of institutions. This page holds GK24's topic-wise GK notes for RBI exams, written as short facts and tables so that a topic can be revised in one sitting, in English and Hindi. Read a topic, then solve its quiz and previous-year questions on this site to check what you retained. For the descriptive part of ESI, turn each note into a one-page answer outline.

RBI GK Questions with Answers

Q101.Indian EconomyAsked in: CDS · CDS-I 2020, GKMedium

Which one of the following is not correct about Repo rate?

  1. A.It is the interest rate charged by the Central Bank on overnight loan.
  2. B.It is the interest rate paid by the commercial banks on overnight borrowing.
  3. C.It is the interest rate agreed upon in the loan contract between a commercial bank and the Central Bank.
  4. D.It is the cost of collateral security.
Show answer
Correct answer: D. It is the cost of collateral security.

The repo rate is an interest rate, not the cost of the collateral. Under a repo, short for repurchase agreement, a commercial bank sells government securities to the central bank and agrees to buy them back, usually the next day, at a slightly higher price.

Q103.Banking & Financial AwarenessAsked in: UPSC Civil Services · CSE Prelims 2026, GS Paper IHard

Consider the following statements about the Non-Banking Financial Companies (NBFCs) in India : 1. NBFCs cannot accept demand deposits. 2. All the NBFCs operating in India have to be registered with the RBI. 3. NBFCs form part of the payment and settlement system and can issue cheque drawn on itself. 4. Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation (DICGC) is not available to the depositors of deposit taking NBFCs. Which of the statements given above is/are correct ?

  1. A.1 and 4
  2. B.1, 2 and 3
  3. C.4 only
  4. D.2, 3 and 4
Show answer
Correct answer: A. 1 and 4

These are two of the three ways the RBI itself says an NBFC differs from a bank. An NBFC lends and invests like a bank, but it cannot accept demand deposits such as savings or current accounts, so statement 1 is correct.

Q104.Indian EconomyAsked in: UPSC Civil Services · CSE Prelims 2026, GS Paper IHard

With reference to different Committees in India, consider the following details : (Committee — Objective — Organization under which it was formed) 1. R.N. Malhotra Committee — Comprehensive reforms of Insurance sector in India — Insurance Regulatory and Development Authority of India 2. L.C. Gupta Committee — Preparing a roadmap for introduction of derivatives trading in India — Securities and Exchange Board of India 3. Urjit R. Patel Committee — Preparing a roadmap for reforming bank lending to the Housing sector — Reserve Bank of India 4. Y.H. Malegam Committee — Preparing a roadmap for reforms in Microfinance sector in India — Reserve Bank of India In which of the above rows are all the details correctly matched ?

  1. A.2 only
  2. B.2 and 3
  3. C.1,3 and 4
  4. D.2 and 4
Show answer
Correct answer: D. 2 and 4

All details are right only in rows 2 and 4. The L.C.

Q105.Indian EconomyAsked in: UPSC Civil Services · CSE Prelims 2019, GS Paper IMedium

Which of the following is issued by registered foreign portfolio investors to overseas investors who want to be part of the Indian stock market without registering themselves directly?

  1. A.Certificate of Deposit
  2. B.Commercial Paper
  3. C.Promissory Note
  4. D.Participatory Note
Show answer
Correct answer: D. Participatory Note

A Participatory Note, or P-Note, lets a foreign investor gain exposure to Indian shares through an FPI that is registered with SEBI, without registering in India itself.

Q106.Indian EconomyAsked in: CDS · CDS-II 2026, GKMedium

India's fiscal deficit widens significantly due to increased Government spending on subsidies while tax revenue remains unchanged. Which one of the following is the most likely consequence?

  1. A.Inflation will rise, interest rates will fall, and private investment will increase
  2. B.Inflation will rise, interest rates may rise, and private investment may slow down
  3. C.Inflation will fall, interest rates will rise, and private investment will increase
  4. D.Inflation will fall, interest rates will fall, and GDP growth will accelerate
Show answer
Correct answer: B. Inflation will rise, interest rates may rise, and private investment may slow down

A wider deficit financed by borrowing tends to push up inflation and interest rates, and higher interest rates can slow private investment.

Q107.Indian EconomyAsked in: CDS · CDS-I 2019, GKMedium

Consider the following statements about indifference curves:

1. Indifference curves are convex to the origin.

2. Higher indifference curve represents higher level of satisfaction.

3. Two indifference curves cut each other.

Which of the statements given above is/are correct?

  1. A.1 only
  2. B.1 and 2
  3. C.2 and 3
  4. D.3 only
Show answer
Correct answer: B. 1 and 2

Statements 1 and 2 are correct; statement 3 is wrong because two indifference curves can never cut each other. An indifference curve shows the combinations of two goods that give a consumer the same satisfaction.

Q108.Indian EconomyAsked in: UPSC Civil Services · CSE Prelims 2026, GS Paper IEasy

Which one of the following best describes the 'Crowding Out Effect' in the context of fiscal policy?

  1. A.A situation where private investment increases due to increased Government spending
  2. B.A situation where Government borrowing leads to higher interest rates, which reduces private investment
  3. C.A situation where an increase in taxes leads to increased private sector investment
  4. D.A situation where Government spending has no impact on aggregate demand
Show answer
Correct answer: B. A situation where Government borrowing leads to higher interest rates, which reduces private investment

When a government runs a large fiscal deficit, it borrows heavily from the same pool of savings that businesses draw on.

Q109.Indian EconomyAsked in: UPSC Civil Services · CSE Prelims 2019, GS Paper IMedium

In the context of India, which of the following factors is/are contributor/contributors to reducing the risk of a currency crisis? 1. The foreign currency earnings of India's IT sector 2. Increasing the government expenditure 3. Remittances from Indians abroad Select the correct answer using the code given below.

  1. A.1 only
  2. B.1 and 3 only
  3. C.2 only
  4. D.1, 2 and 3
Show answer
Correct answer: B. 1 and 3 only

A currency crisis comes when a country runs short of foreign exchange and its currency falls sharply, as India saw in 1991.

Q110.Indian EconomyAsked in: UPSC Civil Services · CSE Prelims 2022, GS Paper IEasy

In India, which one of the following is responsible for maintaining price stability by controlling inflation?

  1. A.Department of Consumer Affairs
  2. B.Expenditure Management Commission
  3. C.Financial Stability and Development Council
  4. D.Reserve Bank of India
Show answer
Correct answer: D. Reserve Bank of India

Controlling inflation through monetary policy is the RBI's legal duty. The RBI Act, 1934 was amended in 2016 to give India a flexible inflation targeting framework.

Q112.Environment & EcologyAsked in: UPSC Civil Services · CSE Prelims 2026, GS Paper IMedium

A bond whose proceeds are used only to finance or refinance a combination of both environmental and social projects is called :

  1. A.Green Bond
  2. B.Social Bond
  3. C.Sustainability Bond
  4. D.Sovereign Bond
Show answer
Correct answer: C. Sustainability Bond

A sustainability bond funds a mix of green and social projects from the same issue. The International Capital Market Association, whose principles most issuers follow, divides labelled bonds by the use of the money raised.

Q113.Indian EconomyAsked in: UPSC Civil Services · CSE Prelims 2019, GS Paper IHard

Consider the following statements : 1. Most of India's external debt is owed by governmental entities. 2. All of India's external debt is denominated in US dollars. Which of the statements given above is/are correct?

  1. A.1 only
  2. B.2 only
  3. C.Both 1 and 2
  4. D.Neither 1 nor 2
Show answer
Correct answer: D. Neither 1 nor 2

Both statements misread the make-up of India's external debt. Statement 1 is wrong because most of India's external debt is owed by non-government borrowers: companies through external commercial borrowings, banks through non-resident Indian deposits, and short-term trade credit.

Q114.Indian EconomyAsked in: UPSC Civil Services · CSE Prelims 2023, GS Paper IMedium

In the context of finance, the term 'beta' refers to

  1. A.the process of simultaneous buying and selling of an asset from different platforms
  2. B.an investment strategy of a portfolio manager to balance risk versus reward
  3. C.a type of systemic risk that arises where perfect hedging is not possible
  4. D.a numeric value that measures the fluctuations of a stock to changes in the overall stock market
Show answer
Correct answer: D. a numeric value that measures the fluctuations of a stock to changes in the overall stock market

Beta tells how strongly a share's price moves when the whole market moves. The market itself has a beta of 1.

Q115.InternationalEasy

What is the subject of the Memorandum of Cooperation signed between India and New Zealand?

  1. A.Electronic exchange of origin data on trade in goods
  2. B.Mutual recognition of academic degrees
  3. C.Removal of all tariffs on dairy products
  4. D.Joint naval exercises in the Indian Ocean
Show answer
Correct answer: A. Electronic exchange of origin data on trade in goods

The memorandum deals with how the two customs administrations will share, in advance and in electronic form, the data that establishes where goods were produced, since a certificate of origin is what decides whether a consignment can claim the lower duties available under a trade agreement.

Q117.InternationalMedium

Which Indian body signed the Memorandum of Cooperation on electronic origin data exchange with the New Zealand Customs Service?

  1. A.Directorate General of Foreign Trade
  2. B.Central Board of Indirect Taxes and Customs
  3. C.NITI Aayog
  4. D.Reserve Bank of India
Show answer
Correct answer: B. Central Board of Indirect Taxes and Customs

The memorandum concerning the electronic exchange of origin data on trade in goods was signed by the CBIC on behalf of India and by the New Zealand Customs Service on the other side, with CBIC Chairman Vivek Chaturvedi and NZCS Comptroller and Chief Executive Christine Stevenson putting their names to…