Daily Quiz — 01 Sep 2026

1. Q1.What was the primary driver behind the Reserve Bank of India's foreign exchange forward book surging to a record $136.7 billion in July 2026?

   Incentive measures that attracted strong inflows of overseas depositsDepreciation of the Indian rupee against major currenciesIncrease in foreign direct investment from neighbouring countriesRBI's decision to raise policy rates unexpectedly
   Explanation: According to the article, the surge in RBI's forex forward book was driven by incentive measures that attracted strong inflows of overseas deposits into India's financial system.

2. Q2.Which UPI expansion initiative was cleared by both the RBI and the Central Bank of Uzbekistan, enabling Indian travellers to make seamless merchant payments?

   Cross-border UPI payments in Uzbekistan via UZQR integrationDirect remittance facility between India and TajikistanRupee settlement mechanism for Central Asian tradeBlockchain-based payment system for South Asian countries
   Explanation: The article states that NPCI International Payments Limited and Uzbekistan's HUMO payment network signed an agreement enabling Indian travellers to make UPI-based merchant payments in Uzbekistan using the UZQR (national QR code), eliminating the need for forex mark-up or international cards.

3. Q3.How did the record RBI dividend contribute to India's fiscal deficit performance in April–July FY27?

   It boosted non-tax revenue, helping narrow the fiscal deficit below targetIt reduced the government's borrowing requirement by 50%It eliminated the need for goods and services tax collectionIt directly converted deficit spending into surplus spending
   Explanation: The record RBI dividend of ₹2.87 lakh crore boosted non-tax revenue, which helped narrow the fiscal deficit to 26.8% of the full-year target (vs 29.9% in the prior year) and is enabling the government to stay on course for its 4.3% of GDP deficit target.

4. Q4.What was the cut-off rate in the RBI's overnight Variable Rate Reverse Repo (VRRR) auction on August 31, 2026, and what did the partial absorption signal?

   5.24% cut-off rate; signalled continued surplus liquidity conditions5.24% cut-off rate; signalled acute liquidity deficit in the system4.85% cut-off rate; signalled balanced liquidity conditions6.10% cut-off rate; signalled need for immediate RBI intervention
   Explanation: The VRRR auction had a cut-off rate of 5.24%, with ₹2,49,840 crore absorbed against a notified amount of ₹4,00,000 crore. The partial absorption signaled continued surplus liquidity conditions in the banking system.

5. Q5.Under RBI guidance, what must lenders assess when considering floating-rate home loans to ensure borrower suitability?

   Borrowers' capacity to absorb rate increases on floating-rate loansBorrowers' historical investment returns over the past 10 yearsThe property's location within a tier-1 or tier-2 cityWhether the borrower owns additional real estate assets
   Explanation: According to the article on home loan EMI sizing, lenders are required under RBI guidance to assess borrowers' capacity to absorb rate increases on floating-rate loans before approval.

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