Money & Banking PYQs

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1. Prelims 2026Q53Money & Banking

   Which one of the following correctly represents the three key sub-indices of the Financial Inclusion Index (FI-Index) of the Reserve Bank of India (RBI) ?

   aCredit access, Insurance depth, and Pension coveragebBanking access, GDP contribution, and Financial literacycAccess, Usage, and QualitydAccess, Affordability, and Transparency
2. Prelims 2026Q55Money & Banking

   Which one of the following statements about Unified Payments Interface (UPI) and Central Bank Digital Currency (Digital Rupee) is not correct ?

   aUPI is a real-time payment system but Digital Rupee is akin to sovereign paper currency.bIn case of UPI, settlement for end users happens instantly as the money gets immediately debited or credited but in case of Digital Rupee, there is no settlement as the wallet balance gets transferred to another wallet.cUPI transactions are recorded by banks and reflected in bank statements but in case of Digital Rupee, no data is captured in bank statements as transactions are from one wallet to another.dIn both the cases (UPI and Digital Rupee), the liability lies with the users and their respective banks.
3. Prelims 2026Q64Money & Banking

   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 ?

   a1 and 4b1, 2 and 3c4 onlyd2, 3 and 4
4. Prelims 2025Q2Money & Banking

   Which of the following are the sources of income for the Reserve Bank of India?

   I.Buying and selling Government bonds

   II.Buying and selling foreign currency

   III.Pension fund management

   IV.Lending to private companies

   V.Printing and distributing currency notes

   Select the correct answer using the code given below.

   aI and II onlybII, III and IVcI, III, IV and VdI, II and V
5. Prelims 2025Q68Money & Banking

   Consider the following statements in respect of RTGS and NEFT :

   I.In RTGS, the settlement time is instantaneous while in case of NEFT, it takes some time to settle payments.

   II.In RTGS, the customer is charged for inward transactions while that is not the case for NEFT.

   III.Operating hours for RTGS are restricted on certain days while this is not true for NEFT.

   Which of the statements given above is/are correct?

   aI onlybI and IIcI and IIIdIII only
6. Prelims 2025Q69Money & Banking

   Consider the following countries :

   I.United Arab Emirates

   II.France

   III.Germany

   IV.Singapore

   V.Bangladesh

   How many countries amongst the above are there other than India where international merchant payments are accepted under UPI?

   aOnly twobOnly threecOnly fourdAll the five
7. Prelims 2024Q49Money & Banking

   With reference to the rule/rules imposed by the Reserve Bank of India while treating foreign banks, consider the following statements :

   1.There is no minimum capital requirement for wholly owned banking subsidiaries in India.

   2.For wholly owned banking subsidiaries in India, at least 50% of the board members should be Indian nationals.

   Which of the statements given above is/are correct ?

   a1 onlyb2 onlycBoth 1 and 2dNeither 1 nor 2
8. Prelims 2024Q53Money & Banking

   Consider the following statements in respect of the digital rupee :

   1.It is a sovereign currency issued by the Reserve Bank of India (RBI) in alignment with its monetary policy.

   2.It appears as a liability on the RBI's balance sheet.

   3.It is insured against inflation by its very design.

   4.It is freely convertible against commercial bank money and cash.

   Which of the statements given above are correct ?

   a1 and 2 onlyb1 and 3 onlyc2 and 4 onlyd1, 2 and 4
9. Prelims 2023Q22Money & Banking

   Consider the following statements :

   Statement–I :

   In the post-pandemic recent past, many Central Banks worldwide had carried out interest rate hikes.

   Statement–II :

   Central Banks generally assume that they have the ability to counteract the rising consumer prices via monetary policy means.

   Which one of the following is correct in respect of the above statements?

   aBoth Statement–I and Statement–II are correct and Statement–II is the correct explanation for Statement–IbBoth Statement–I and Statement–II are correct and Statement–II is not the correct explanation for Statement–IcStatement–I is correct but Statement–II is incorrectdStatement–I is incorrect but Statement–II is correct
10. Prelims 2023Q24Money & Banking

    Which one of the following activities of the Reserve Bank of India is considered to be part of 'sterilization'?

    aConducting 'Open Market Operations'bOversight of settlement and payment systemscDebt and cash management for the Central and State GovernmentsdRegulating the functions of Non-banking Financial Institutions
11. Prelims 2023Q72Money & Banking

    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?

    a1 onlyb2 onlycBoth 1 and 2dNeither 1 nor 2
12. Prelims 2023Q74Money & Banking

    Consider the following statements :

    1.The Self-Help Group (SHG) programme was originally initiated by the State Bank of India by providing microcredit to the financially deprived.

    2.In an SHG, all members of a group take responsibility for a loan that an individual member takes.

    3.The Regional Rural Banks and Scheduled Commercial Banks support SHGs.

    How many of the above statements are correct?

    aOnly onebOnly twocAll threedNone
13. Prelims 2022Q3Money & Banking

    With reference to the Indian economy, consider the following statements :

    1.If the inflation is too high, Reserve Bank of India (RBI) is likely to buy government securities.

    2.If the rupee is rapidly depreciating, RBI is likely to sell dollars in the market.

    3.If interest rates in the USA or European Union were to fall, that is likely to induce RBI to buy dollars.

    Which of the statements given above are correct ?

    a1 and 2 onlyb2 and 3 onlyc1 and 3 onlyd1, 2 and 3
14. Prelims 2022Q64Money & Banking

    With reference to the 'Banks Board Bureau (BBB)', which of the following statements are correct ?

    1.The Governor of RBI is the Chairman of BBB.

    2.BBB recommends for the selection of heads for Public Sector Banks.

    3.BBB helps the Public Sector Banks in developing strategies and capital raising plans.

    Select the correct answer using the code given below :

    a1 and 2 onlyb2 and 3 onlyc1 and 3 onlyd1, 2 and 3
15. Prelims 2021Q1Money & Banking

    Consider the following statements :

    1.The Governor of the Reserve Bank of India (RBI) is appointed by the Central Government.

    2.Certain provisions in the Constitution of India give the Central Government the right to issue directions to the RBI in public interest.

    3.The Governor of the RBI draws his power from the RBI Act.

    Which of the above statements are correct?

    a1 and 2 onlyb2 and 3 onlyc1 and 3 onlyd1, 2 and 3
16. Prelims 2021Q5Money & Banking

    With reference to ‘Urban Cooperative Banks’ in India, consider the following statements :

    1.They are supervised and regulated by local boards set up by the State Governments.

    2.They can issue equity shares and preference shares.

    3.They were brought under the purview of the Banking Regulation Act, 1949 through an Amendment in 1966.

    Which of the statements given above is/are correct?

    a1 onlyb2 and 3 onlyc1 and 3 onlyd1, 2 and 3
17. Prelims 2021Q11Money & Banking

    The money multiplier in an economy increases with which one of the following?

    aIncrease in the Cash Reserve Ratio in the banksbIncrease in the Statutory Liquidity Ratio in the bankscIncrease in the banking habit of the peopledIncrease in the population of the country
18. Prelims 2021Q15Money & Banking

    In India, the central bank’s function as the ‘lender of last resort’ usually refers to which of the following?

    1.Lending to trade and industry bodies when they fail to borrow from other sources

    2.Providing liquidity to the banks having a temporary crisis

    3.Lending to governments to finance budgetary deficits

    Select the correct answer using the code given below.

    a1 and 2b2 onlyc2 and 3d3 only
19. Prelims 2020Q50Money & Banking

    If you withdraw ₹ 1,00,000 in cash from your Demand Deposit Account at your bank, the immediate effect on aggregate money supply in the economy will be

    ato reduce it by ₹ 1,00,000bto increase it by ₹ 1,00,000cto increase it by more than ₹ 1,00,000dto leave it unchanged
20. Prelims 2020Q54Money & Banking

    In the context of the Indian economy, non-financial debt includes which of the following ?

    1.Housing loans owed by households

    2.Amounts outstanding on credit cards

    3.Treasury bills

    Select the correct answer using the code given below :

    a1 onlyb1 and 2 onlyc3 onlyd1, 2 and 3
21. Prelims 2020Q57Money & Banking

    If the RBI decides to adopt an expansionist monetary policy, which of the following would it not do ?

    1.Cut and optimize the Statutory Liquidity Ratio

    2.Increase the Marginal Standing Facility Rate

    3.Cut the Bank Rate and Repo Rate

    Select the correct answer using the code given below :

    a1 and 2 onlyb2 onlyc1 and 3 onlyd1, 2 and 3
22. Prelims 2020Q62Money & Banking

    What is the importance of the term “Interest Coverage Ratio” of a firm in India ?

    1.It helps in understanding the present risk of a firm that a bank is going to give loan to.

    2.It helps in evaluating the emerging risk of a firm that a bank is going to give loan to.

    3.The higher a borrowing firm’s level of Interest Coverage Ratio, the worse is its ability to service its debt.

    Select the correct answer using the code given below :

    a1 and 2 onlyb2 onlyc1 and 3 onlyd1, 2 and 3
23. Prelims 2019Q61Money & Banking

    The Service Area Approach was implemented under the purview of

    aIntegrated Rural Development ProgrammebLead Bank SchemecMahatma Gandhi National Rural Employment Guarantee SchemedNational Skill Development Mission
24. Prelims 2019Q64Money & Banking

    Which of the following is not included in the assets of a commercial bank in India?

    aAdvancesbDepositscInvestmentsdMoney at call and short notice
25. Prelims 2019Q72Money & Banking

    What was the purpose of Inter-Creditor Agreement signed by Indian banks and financial institutions recently?

    aTo lessen the Government of India’s perennial burden of fiscal deficit and current account deficitbTo support the infrastructure projects of Central and State GovernmentscTo act as independent regulator in case of applications for loans of ₹ 50 crore or moredTo aim at faster resolution of stressed assets of ₹ 50 crore or more which are under consortium lending
26. Prelims 2019Q73Money & Banking

    The Chairmen of public sector banks are selected by the

    aBanks Board BureaubReserve Bank of IndiacUnion Ministry of FinancedManagement of concerned bank
27. Prelims 2019Q87Money & Banking

    Consider the following statements :

    The Reserve Bank of India's recent directives relating to 'Storage of Payment System Data', popularly known as data diktat, command the payment system providers that

    1.they shall ensure that entire data relating to payment systems operated by them are stored in a system only in India

    2.they shall ensure that the systems are owned and operated by public sector enterprises

    3.they shall submit the consolidated system audit report to the Comptroller and Auditor General of India by the end of the calendar year

    Which of the statements given above is/are correct?

    a1 onlyb1 and 2 onlyc3 onlyd1, 2 and 3
28. Prelims 2019Q90Money & Banking

    The money multiplier in an economy increases with which one of the following?

    aIncrease in the cash reserve ratiobIncrease in the banking habit of the populationcIncrease in the statutory liquidity ratiodIncrease in the population of the country
29. Prelims 2018Q6Money & Banking

    Which one of the following best describes the term "Merchant Discount Rate" sometimes seen in news ?

    aThe incentive given by a bank to a merchant for accepting payments through debit cards pertaining to that bank.bThe amount paid back by banks to their customers when they use debit cards for financial transactions for purchasing goods or services.cThe charge to a merchant by a bank for accepting payments from his customers through the bank's debit cards.dThe incentive given by the Government to merchants for promoting digital payments by their customers through Point of Sale (PoS) machines and debit cards.
30. Prelims 2018Q15Money & Banking

    Which one of the following links all the ATMs in India ?

    aIndian Banks' AssociationbNational Securities Depository LimitedcNational Payments Corporation of IndiadReserve Bank of India