Daily Quiz — 19 Aug 2026

1. Q1.According to Ind-Ra's latest forecast, what is India's projected GDP growth rate for FY27, and what key external risk factor is cited as a major headwind?

   6.8% growth; West Asia conflict driving fuel and food price inflation6.7% growth; El Nino pressures on agriculture7.2% growth; weaker rupee impacting exports6.5% growth; rising digital payment adoption
   Explanation: India Ratings raised its FY27 GDP growth forecast to 6.8%, marginally above its May 2026 estimate. The article explicitly identifies the West Asia conflict as a key risk driving fuel and food price inflation.

2. Q2.What was the Priority Sector Lending (PSL) achievement rate for RRBs in FY26, and how does it compare to the mandated target?

   91.7% achievement rate, exceeding the mandated 75% target75% achievement rate, meeting the minimum regulatory requirement85.3% achievement rate, slightly above the 80% target88.5% achievement rate, falling short of the 90% expectation
   Explanation: The article states that RRBs achieved PSL at 91.7% of Adjusted Net Bank Credit (ANBC), which is well above the mandated 75% target, demonstrating strong performance in priority lending.

3. Q3.RBI Governor Sanjay Murmu has identified which challenge related to currency management in the context of India's financial system evolution?

   Rising digital payments are making cash demand forecasting increasingly difficult despite double-digit currency growthDeclining currency in circulation is forcing the RBI to produce fewer banknotes annuallyCounterfeit notes have increased proportionally with digital payment adoptionThe RBI must reduce banknote production to below 20 billion units annually
   Explanation: The RBI Governor flagged that rising digital payments are making cash demand increasingly difficult to forecast, even as currency in circulation continues to grow at double-digit rates. This reflects the complexity of managing currency supply amid payment system transformation.

4. Q4.L&T Finance's aggressive gold loan expansion targets what annual growth rate and open how many new branches this fiscal year?

   Over 50% growth with 500 new branches opened this fiscal year30% growth with 300 new branches opened this fiscal year40% growth with 750 new branches opened this fiscal year60% growth with 200 new branches opened this fiscal year
   Explanation: L&T Finance plans to open 500 new gold loan branches and targets over 50% growth in its gold loan book. The article notes the organised gold loan market is projected to grow at over 30% CAGR, surpassing ₹30 lakh crore by March 2028.

5. Q5.What is the primary concern cited by the RBI in its proposed blanket ban on revolving or flexi-loans offered by NBFCs, and what proportion of total financial sector assets do NBFCs account for?

   Loan evergreening and systemic contagion risk; NBFCs account for less than 15% of total financial sector assetsHigh default rates and credit quality deterioration; NBFCs account for 25% of total financial sector assetsInadequate capital ratios and consumer protection lapses; NBFCs account for 20% of total financial sector assetsPredatory lending practices and regulatory arbitrage; NBFCs account for over 30% of total financial sector assets
   Explanation: The RBI proposed the ban citing concerns about loan evergreening and systemic contagion risk. Critics note that NBFCs account for less than 15% of total financial sector assets, suggesting the regulatory response may be disproportionate.

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