Daily Quiz — 18 Aug 2026

1. Q1.According to the article on RBI's directive regarding bank deposit ratings, what is the primary conflict that has emerged between the RBI and SEBI?

   RBI directed rating agencies to stop identifying RBI as the regulator of bank deposits, conflicting with SEBI's disclosure mandateSEBI requested rating agencies to increase bank deposit ratings, but RBI opposed the moveRating agencies refused to comply with RBI's directive to rate bank depositsRBI and SEBI disagreed on the minimum interest rate for bank deposits
   Explanation: The RBI directed credit rating agencies to stop identifying it as the regulator of rated bank deposits, which conflicts with SEBI rules that mandate such disclosure. This creates a regulatory tug-of-war between the two authorities.

2. Q2.Under the proposed Kisan Credit Card scheme modification, what is the government seeking to reduce by 50 basis points?

   The interest subvention on farm loansThe maximum loan amount under the schemeThe repo rate applied to agricultural advancesThe collateral requirement for KCC borrowers
   Explanation: The government is negotiating with banks to reduce the interest subvention component of the Kisan Credit Card scheme by 50 basis points, aiming to pass on benefits from RBI's cumulative 125 basis point repo rate cuts.

3. Q3.According to ICRA's estimates, what is the projected GDP growth rate for India's full fiscal year FY27, and what was the key driver of the slowdown from FY26?

   6.7% for FY27, driven by West Asia conflict headwinds and wage cost pressures7% for FY27, driven primarily by agricultural sector weakness6.5% for FY27, due to excessive tightening by the RBI7.2% for FY27, with manufacturing sector contraction as the main factor
   Explanation: ICRA projects FY27 GDP growth to moderate to 6.7%, down from 7.7% in FY26, driven by West Asia conflict headwinds and wage cost pressures, despite healthy volume growth in industrial and services sectors.

4. Q4.What key achievement did Finance Minister Nirmala Sitharaman highlight at the PSB Conclave 2046 regarding the banking sector's financial health?

   Non-performing assets are at their lowest-ever levelsCapital adequacy ratios have doubled across all PSBsDeposit growth has exceeded 15% year-on-yearCredit-to-deposit ratios have reached 100% across all banks
   Explanation: The Finance Minister highlighted that non-performing assets (NPAs) in the banking sector are at their lowest-ever levels, positioning the sector well for the next phase of reform under the Viksit Bharat 2047 vision.

5. Q5.Which of the following best explains why Indian bond markets have remained stable amid global rate surge, as per the article on Indian bonds outperformance?

   Benign inflation, resilient growth, fiscal discipline, and steady RBI forex managementRBI's decision to increase repo rates by 125 basis pointsGovernment restrictions on foreign portfolio investor inflowsIncreased banking sector NPAs reducing credit demand
   Explanation: India's 10-year bond yield rose only 8 basis points over six months (vs. 56-78 in peer economies) due to benign inflation, resilient growth, fiscal discipline, and steady RBI forex management insulating India from emerging market rate pressures.

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