Daily Quiz — 26 Aug 2026

1. Q1.According to the RBI Deputy Governor Shirish Chandra Murmu, what dual challenge complicates future currency demand forecasting in India?

   Double-digit growth in currency circulation and declining cash transaction shareRising inflation and decreasing banking penetrationPolymer note adoption and physical cash hoardingDigital payment growth and increased note counterfeiting
   Explanation: The article states that double-digit growth in currency in circulation, alongside a declining cash transaction share, creates conflicting signals that complicate the RBI's ability to forecast future currency demand accurately.

2. Q2.What specific product restriction does FISME argue against in the RBI's draft NBFC proposal?

   Ban on revolving credit for NBFCsRestriction on term lending to micro enterprisesProhibition of consumer loans by NBFCsCaps on NBFC deposit-taking activities
   Explanation: FISME warns that the RBI's draft proposal would ban NBFCs from offering revolving credit, restricting them to term loans only. FISME contends this would severely disrupt working-capital financing for MSMEs.

3. Q3.What was the primary concern raised by the investor group regarding HDFC Bank's Dubai branch operations?

   Mis-selling of high-risk Credit Suisse AT1 bonds to retail customersUnauthorized forex trading by bank advisorsOvercharging on international money transfer feesFailure to disclose currency exchange risks
   Explanation: Over 75 investors with $13.5 million invested in Carlisle's Luxembourg Life Fund alleged client-suitability lapses by HDFC Bank's Dubai branch, specifically regarding the mis-selling of high-risk Credit Suisse Additional Tier 1 bonds to retail customers.

4. Q4.According to the RBI's latest monthly bulletin cited in the article, what has hindered the transmission of the RBI's cumulative 125 basis points repo rate cuts between February and June 2026?

   Fresh deposit and lending rates have risen despite repo rate cutsCredit growth declined faster than deposit growthBanks reduced their lending to MSME sectorsForeign portfolio investors withdrew from Indian markets
   Explanation: Despite 125 basis points of cumulative repo rate cuts, fresh deposit and lending rates have risen, signalling incomplete monetary policy transmission. This indicates that banks have not fully passed rate cuts to customers.

5. Q5.What was the combined valuation placed on Fairfax Financial's offer for the stake being sold in IDBI Bank by LIC?

   Approximately ₹53,000 crore for the 60.72% combined stake₹30,240 crore for LIC's 30.24% stake alone₹45,000 crore for majority control₹60,000 crore for 100% of the bank
   Explanation: The article states that Fairfax Financial emerged as the preferred bidder, with its revised offer valuing the 60.72% combined stake at approximately ₹53,000 crore (this is LIC's 30.24% stake combined with the remaining stake).

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