Daily Quiz — 28 Aug 2026

1. Q1.According to the RBI's recent rupee defence strategy, what is the primary source of liquidity supporting the central bank's continuous intervention in the forex market?

   $73 billion in fresh dollar inflows since June$50 billion in Special Drawing Rights from the IMF$100 billion in bilateral currency swap agreements$45 billion in domestic Government securities sales
   Explanation: The article states that the RBI has backed its continuous rupee intervention strategy with $73 billion in fresh dollar inflows since June, which serves as the liquidity cushion for sustained market operations.

2. Q2.Which regulatory action did the RBI take against The Citizens Co-operative Bank Ltd., Jammu, and what is the maximum withdrawal limit permitted for depositors under these restrictions?

   Placed under restrictions with ₹1,25,000 withdrawal limitPlaced under restrictions with ₹2,00,000 withdrawal limitMerged with another bank with no withdrawal restrictionsPlaced under restrictions with ₹50,000 withdrawal limit
   Explanation: The RBI placed the bank under strict regulatory directions effective August 27, 2026, prohibiting loans, fresh deposits, and investments without prior RBI approval. The withdrawal limit for depositors is capped at ₹1,25,000 to manage the bank's liquidity constraints.

3. Q3.What is the primary objective of the memorandum of understanding signed between NABARD and NaBFID?

   To jointly finance rural infrastructure projects including irrigation and cold-chain facilitiesTo establish new urban commercial banking hubs across IndiaTo digitize all rural cooperative societies within 12 monthsTo redirect MGNREGA funds toward private sector manufacturing
   Explanation: The MoU between NABARD and NaBFID aims to jointly finance rural infrastructure projects including irrigation, cold-chain facilities, rural roads, and compressed biogas, with focus on PPP projects and agri-value chains aligned with the Viksit Bharat vision.

4. Q4.According to S&P Global's latest assessment, what is the projected GDP growth for India in the current fiscal year, and what near-term headwinds does the agency identify?

   6.6% growth; energy shock and difficult agricultural conditions cited as headwinds7.2% growth; geopolitical tensions and trade wars cited as headwinds6.0% growth; inflation and currency depreciation cited as headwinds7.5% growth; capital flight and fiscal deficit cited as headwinds
   Explanation: S&P Global projects India's GDP growth at 6.6% for the current fiscal year, with expected recovery to an average of 7% over the next three years. The agency identifies an energy shock and difficult agricultural conditions as near-term headwinds impacting growth.

5. Q5.In the context of India's consumption and labour market dynamics highlighted in recent data, what key divergence has been observed between automobile sales and employment indicators?

   Strong 28% auto sales growth contrasts with rising 5.4% unemployment and falling 54.6% labour participation rateAuto sales collapsed while unemployment fell, indicating shift to online consumptionBoth auto sales and employment grew equally, showing balanced economic expansionAuto sales fell while unemployment remained stable at 3.2%
   Explanation: While retail automobile sales surged up to 28% year-on-year in July 2026 signalling robust consumer demand, the labour market simultaneously weakened with unemployment rising to 5.4% and labour force participation falling to 54.6% in April-June quarter, creating a divergence between consumption growth and employment improvements.

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