Skip to content
GK24
Prime
Banking & Financial AwarenessMediumAsked in: UPSC Civil Services · CSE Prelims 2022, GS Paper I

Consider the following statements : 1. In India, credit rating agencies are regulated by Reserve Bank of India. 2. The rating agency popularly known as ICRA is a public limited company. 3. Brickwork Ratings is an Indian credit rating agency. Which of the statements given above are correct ?

  1. A.1 and 2 only
  2. B.2 and 3 only
  3. C.1 and 3 only
  4. D.1, 2 and 3

Correct answer

B. 2 and 3 only

Explanation

The correct answer is B, 2 and 3 only. Credit rating agencies in India are regulated by SEBI, not by the RBI, while statements 2 and 3 are true.

SEBI registers and supervises credit rating agencies under the SEBI (Credit Rating Agencies) Regulations, 1999. The RBI only accredits some of them as external credit assessment institutions whose ratings banks may use when they set aside capital under the Basel norms. ICRA Limited, originally the Investment Information and Credit Rating Agency of India, was set up in 1991 and is a public limited company listed on the stock exchanges. Brickwork Ratings, founded in Bengaluru in 2007, is an Indian rating agency, alongside CRISIL, CARE, India Ratings and Acuite.

A is wrong because it includes the false statement 1 and leaves out statement 3. C is wrong because it includes statement 1 and drops statement 2. D is wrong because statement 1 is false.

Exam tip: Credit rating agencies are regulated by SEBI (1999 regulations); the RBI only accredits them for bank capital.

Practice Questions

View all
Q1.Banking & Financial AwarenessAsked in: UPSC Civil Services · CSE Prelims 2017, GS Paper IEasy

Consider the following statements : 1. National Payments Corporation of India (NPCI) helps in promoting the financial inclusion in the country. 2. NPCI has launched RuPay, a card payment scheme. 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: C. Both 1 and 2

The National Payments Corporation of India was set up in 2008 as the umbrella body for retail payments in the country, on the initiative of the Reserve Bank of India and the Indian Banks' Association, under the Payment and Settlement Systems Act, 2007.

Q2.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.

Q5.Banking & Financial AwarenessAsked in: UPSC Civil Services · CSE Prelims 2023, GS Paper IMedium

With reference to Central Bank digital currencies, consider the following statements: 1. It is possible to make payments in a digital currency without using US dollar or SWIFT system. 2. A digital currency can be distributed with a condition programmed into it such as a time-frame for spending it. 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: C. Both 1 and 2

A central bank digital currency can settle payments directly between countries without the dollar or SWIFT, and it can be programmed with conditions on its use.