Daily Quiz — 13 Aug 2026

1. Q1.According to the RBI's draft unified lending rate framework, what is the primary objective of the new regulatory initiative?

   To strengthen monetary policy transmission, fair credit pricing, and non-discriminatory borrower treatmentTo increase the Reserve Bank's control over individual bank loan approvalsTo mandate uniform interest rates across all lending institutionsTo eliminate the role of NBFC lenders in the Indian credit market
   Explanation: The article explicitly states that the RBI's unified lending-rate framework aims to strengthen monetary policy transmission, fair credit pricing, and non-discriminatory borrower treatment across all regulated entities.

2. Q2.What is the blended premium cost of the Credit Guarantee Fund for Micro Units scheme that has benefited Suryoday Small Finance Bank?

   0.8–1.0% of covered loans1.4–1.6% of covered loans2.0–2.5% of covered loans3.0–3.5% of covered loans
   Explanation: The article clearly states that the guarantee's blended premium cost is 1.4–1.6% of covered loans, which Suryoday adopted early in 2023 and is now proving beneficial as other MFIs face asset-quality stress.

3. Q3.According to the SEBI commodity derivatives stress-testing framework revision, what change was made to the Z-score threshold and what does it mean for risk assessment?

   Increased from 5 to 10; clearing corporations now assess larger price swingsReduced from 10 to 5; clearing corporations now assess price movements beyond five standard deviations instead of tenMaintained at 10; only the calculation methodology was changedReduced from 15 to 10; stress-testing requirements have been loosened
   Explanation: SEBI cut the Z-score threshold from 10 to 5, meaning price swings beyond five standard deviations (rather than ten) will now be capped at a Z-score of 5 for the peak historical-return stress scenario, making the framework more sensitive to extreme price movements.

4. Q4.What valuation multiple did Bank of America apply when investing approximately ₹18,268 crore for up to 49.9% stake in Jio Credit, and what is the resulting enterprise value?

   1.5 times net worth; $2.5 billion valuation2.5 times net worth; $3.8 billion valuation3.0 times net worth; $4.5 billion valuation2.0 times net worth; $3.2 billion valuation
   Explanation: The article states that Bank of America valued Jio Credit at around $3.8 billion, or 2.5 times its net worth, demonstrating investor confidence in the digital NBFC's rapid asset-building capacity.

5. Q5.Which UNCITRAL framework is India set to adopt for cross-border insolvency cases, and what advantage does this provide over bilateral treaties?

   UNCITRAL Model Law on International Commercial Arbitration; eliminates need for domestic courtsUNCITRAL Model Law on Cross-Border Insolvency; accelerates implementation and improves foreign court coordinationUNCITRAL Model Law on Electronic Commerce; digitalizes all insolvency proceedingsUNCITRAL Model Law on Procurement; standardizes creditor selection processes
   Explanation: India is adopting the UNCITRAL Model Law on Cross-Border Insolvency, which provides faster implementation, improved coordination with foreign courts, and greater process predictability for insolvency professionals compared to negotiating individual bilateral treaties with multiple countries.

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