Daily Quiz — 03 Aug 2026

1. Q1.According to the RBI MPC article, what are the primary drivers of the Reserve Bank of India's policy calculus for its monetary policy decisions?

   Domestic inflation, liquidity conditions, and growthGlobal crude prices and U.S. Federal Reserve stanceExchange rate stability and foreign portfolio inflowsCommercial bank lending rates and deposit growth
   Explanation: The article explicitly states that domestic inflation, liquidity conditions, and growth remain the primary drivers of RBI's policy calculus rather than global monetary trends, despite the hawkish U.S. Federal Reserve environment.

2. Q2.What alternative to the RBI's one-hour delayed credit mechanism are Indian banks proposing to curb UPI fraud for high-value peer-to-peer transfers?

   'Yes-No' confirmation prompt for high-value transactionsTwo-factor authentication using biometric verification onlyMandatory 24-hour settlement delay for all peer-to-peer transfersReal-time blockchain verification of all UPI transactions
   Explanation: Banks are proposing a 'Yes-No' confirmation prompt as an alternative safeguard, and they also suggest raising the transaction threshold from ₹10,000 to ₹20,000–₹25,000 to avoid dampening digital payment adoption.

3. Q3.According to the SEZ Forex Rule Reform article, what change is the government planning to allow for service exports from SEZs to Domestic Tariff Areas?

   Settlement in Indian rupees instead of mandatory foreign exchangeExemption from all customs duties and tariffsDirect listing of SEZ companies on domestic stock exchangesReduction of SEZ service export quotas by 50%
   Explanation: The government is amending the Special Economic Zone Act to allow service exports to be settled in Indian rupees rather than mandatory foreign exchange, aligning with GST law and reducing transaction costs for Indian SEZ units.

4. Q4.What was Punjab National Bank's capital adequacy ratio mentioned in the article, and how does it compare to the regulatory minimum?

   18.13%, which is 6.63 percentage points above the 11.5% regulatory minimum15.8%, which is just above the regulatory minimum of 15%22.5%, which exceeds the regulatory minimum by 8 percentage points12.1%, which barely meets the 11.5% regulatory minimum
   Explanation: PNB's CAR stood at 18.13%, which is well above the 11.5% regulatory minimum, meaning the bank does not need fresh market fundraising to fund growth and can prioritise building value in subsidiaries.

5. Q5.What is the target loan book size for L&T Finance by 2031 under its Lakshya strategy, and what transformation is anchoring this strategy?

   ₹3 lakh crore, anchored on retail delivery after wholesale-to-retail transformation₹2.5 lakh crore, anchored on wholesale lending expansion₹4 lakh crore, anchored on commercial real estate financing₹2 lakh crore, anchored on MSME lending focus
   Explanation: L&T Finance targets a 2.3x expansion of its loan book to ₹3 lakh crore by 2031, with the strategy anchored on retail delivery following the completion of its wholesale-to-retail transformation.

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