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MCQs for Practice

Q1. Recently, RBI announced Financial Literacy Week 2024 from February 26 to March 1, 2024.
Which of the following statements is\are correct in regard to the Financial Literacy week 2024?
1. Financial Literacy Week has been observed every year since 2016 with the aim of promoting financial
literacy.
2. RBI is observing the FLW 2024 on the theme "Good Financial Behaviour - Your Saviour".
3. The theme for this year, is targeted towards young adults, mainly students with the objective is to increase
awareness on the advantages of inculcating financial discipline from an early age with inputs on saving,
budgeting, power of compounding, banking essentials and cyber hygiene.
4. As part of FLW campaign of 2024, RBI has announced a Financial Literacy Ideathon whose aim is creating
awareness about savings, planning and budgeting, and prudent use of digital financial services.
A. 1 and 2
B. 2 and 3
C. 3 and 4
D. 1 and 3
E. 1 and 4
Ans. D
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Q2. The theme of the Financial Literacy Week 2024 aligns with the overall strategic objectives
of the National Strategy for Financial Education: 2020-2025. Which of the following is not
among the 5 Core actions or ‘5 C’ Approach to achieve the Strategic Objectives of NSFE?
A. Collaboration
B. Connectivity
C. Communication
D. Community
E. Content

Ans. B
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Q3. Recently, RBI amended the Master Direction on Prepaid Payment Instruments (PPI), where
it has allowed authorised bank and non-bank PPI issuers to issue PPIs for making payments
across various public transport systems. Which of the following statements are incorrect in
regard to such PPIs?

A. The amount outstanding, in such PPIs shall not exceed Rs.3,000/- at any point of time.
B. These PPIs can have validity of 5 years.
C. Cash-withdrawal, refund or funds transfer shall not be permitted in such PPIs.
D. These PPIs can be issued with KYC verification of the holders.
1. A and B
2. B and D
3. A, B and C
4. A, B and D
5. B and C
Ans. 2
RBI amended the Master Direction on Prepaid
Payment Instruments (PPI), where it has allowed
authorised bank and non-bank PPI issuers to issue
PPIs for making payments across various public
transport systems.
 MCQs for Practice
Q4. As the Paytm Payments Bank cannot accept further credits into its customer accounts and
wallets after March 15, 2024, certain additional steps have become necessary to ensure
seamless digital payments by UPI customers using ‘@paytm’ handle operated by the Paytm
Payments Bank, and to minimise concentration risk in the UPI system by having multiple
payment app providers. Which of the following is the incorrect statement in regard to the
additional steps mentioned by RBI?
A. NPCI has been advised by the RBI to examine the request of One97 Communication Ltd (OCL) to become a
TPAP for UPI channel for continued UPI operation of the Paytm app, as per the norms.
B. In the event of NPCI granting TPAP status to OCL, it may be stipulated that ‘@paytm’ handles are to be
migrated in a seamless manner from Paytm Payments Bank to a set of newly identified banks to avoid any
disruption.
C. No new users are to be added by the said TPAP until all the existing users are migrated satisfactorily to a
new handle.
D. For seamless migration of ‘@paytm’ handle to other banks, NPCI may facilitate certification of 4-5 banks
as Payment Service Provider (PSP) Banks with demonstrated capabilities to process high volume UPI
transactions. This is in line with NPCI norms for minimising concentration risk.
E. For the merchants using PayTM QR Codes, OCL may open the settlement accounts with one or more PSP
Banks including Paytm Payments Bank).

Ans. E
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Q5. Recently, The Reserve Bank of India (RBI) allowed Indian bank branches in GIFT-IFSC to
act as _______________________of the International Bullion Exchange IFSC Ltd (IIBX).

1. Trading Members
2. Trading and Clearing Members
3. Self Clearing Members
4. Special Category Client

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

Ans. C
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Q6. Recently, The Reserve Bank of India (RBI) released a notification regarding Participation of
Indian Banks on India International Bullion Exchange IFSC Limited (IIBX). Which of the following
statements is incorrect regarding the notification?

A. The TM/TCM shall execute trades only on behalf of clients (without proprietary trading).
B. All client trades placed on the exchange shall be against 120% advance pay-in of funds (buy
order) of the expected value of bullion (quantity & quality specification) intended to be purchased
and securities (sell order) in the account of the bank, as is applicable.
C. Indian banks authorized to import gold/silver are allowed to act as Special Category Client (SCC)
of IIBX.
D. The SCC shall execute only buy trades on behalf of clients.
E. The SCCs will appoint one of the IFSC Banking Units (IBUs) to act as clearing member on their
behalf.

Ans. B
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Q7. The Reserve Bank of India (RBI), issued orders restraining commercial transactions routed through
intermediaries by a card network. Which of the following statements are correct in this regards?
A. It has come to the notice of RBI that a Card Network had an arrangement that enables businesses to make card
payments through certain intermediaries, to entities that do not accept card payments.
B. The intermediary in the above arrangement pooled large amount of funds into an account which is not a designated
account under PSS Act.
C. Transactions processed under this arrangement complied with the originator and beneficiary information
requirements, as stipulated under Master Direction on KYC issued by the Reserve Bank.
D. It is clarified that the Reserve Bank has not placed any restriction with respect to normal usage of business credit
cards.
1. A, B and C
2. A and D
3. C and D
4. A, B and D
5. B and C
Ans. 4
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Q8. Recently, In a bid to enable banks to sufficiently attract qualified competent individuals on their
Boards, the RBI has revised upwards the ceiling in respect of remuneration of Non-Executive Directors
(NEDs). Which of the following statements is correct regarding the NEDs?
A. The upper age limit for NEDs shall be 85 years and after attaining the age of 85 years no person can
continue in these positions.
B. The total tenure of an NED, continuously or otherwise, on the board of a bank, shall not exceed eight
years.
C. After completing eight years on the board of a bank the person may be considered for re-appointment
only after a minimum gap of five years.
D. Fixed remuneration for an NED, other than the Chair of the board, shall not exceed ₹10 lakh per
annum.
E. The instructions of increase in celling of renumeration would be applicable to all the Public and Private
Sector Banks including Small Finance Banks (SFBs) and Payment Banks (PBs) as also the wholly owned
subsidiaries of Foreign Banks.
Ans. B
In a bid to enable banks
to sufficiently attract
qualified competent
individuals on their
Boards, the RBI has
revised upwards the
ceiling in respect of
remuneration of Non-
Executive Directors
(NEDs), other than the
Chair of the Board, to
₹30 lakh per annum
from ₹20 lakh.
 H.W. Question

Q1. A MoU was signed between the _________________________________ and DBS Bank which will utilise
multiple digital platforms to ensure increased visibility and engagement to impart investor
awareness activities.

A. Consumer Education and Protection Department (CEPD)

B. Securities and Exchange Board of India
C. Department of External Investments & Operations (DEIO)
D. Department of Payment & Settlement Systems (DPSS)
E. Investor Education and Protection Fund Authority (IEPFA)
Ans. ?
Q. Recently (September 2021) NARCL was launched by the
Union Cabinet approving the government guarantee on
security receipts to buy bad loans of lenders. It has been
incorporated under the Companies Act and has applied for
license from RBI. What does R stand for in NARCL?

1. Resolution
2. Reconstruction
3. Restructuring
4. Revenue
5. None of the Above