Daily Quiz — 17 Sep 2026

1. Q1.According to the Supreme Court ruling on vehicle repossession, what key restriction has been imposed on lenders like banks and NBFCs when recovering financed vehicles from defaulting borrowers?

   Lenders are prohibited from using force or stealth during vehicle repossessionLenders must wait a minimum of 12 months before initiating repossession proceedingsLenders must obtain written permission from the RBI before repossessing any vehicleLenders can only repossess vehicles during business hours on weekdays
   Explanation: The Supreme Court directive, arising from the Cholamandalam case, explicitly bars lenders from using force or stealth to repossess assets, establishing a legal safeguard for borrowers' rights even in default situations.

2. Q2.In the RBI's recent liquidity management operations, what was the primary objective of conducting twin VRRR auctions that absorbed ₹2.90 lakh crore from the banking system?

   To inject liquidity into the banking system to support credit growthTo drain excess surplus liquidity from the banking systemTo increase the repo rate without formal announcementTo encourage banks to reduce their lending rates
   Explanation: The RBI conducted VRRR auctions and OMO sales to drain excess liquidity from the banking system, which was hovering near ₹9.85 lakh crore, indicating surplus liquidity that needed absorption.

3. Q3.AU Small Finance Bank's vehicle loan portfolio achieved what milestone in August 2026, and what percentage of the bank's total loan book does this segment now represent?

   ₹50,000 crore, representing approximately 25% of total loan book₹50,000 crore, representing approximately one-third of total loan book₹40,000 crore, representing approximately 40% of total loan book₹60,000 crore, representing approximately 50% of total loan book
   Explanation: The article states that AU Small Finance Bank's wheels portfolio crossed ₹50,000 crore in August 2026 and now constitutes nearly one-third (approximately 33%) of the bank's total loan book, reflecting its strategic importance.

4. Q4.Which structural reforms does CII's R Mukundan credit as anchoring India's economic resilience, particularly in achieving the first quarter FY2027 growth rate?

   Import liberalisation, foreign direct investment caps, and regional trade agreementsGST, Insolvency and Bankruptcy Code, and digital public infrastructure (JAM trinity)Agricultural subsidies, manufacturing incentives, and infrastructure bondsBanking sector consolidation, equity market regulations, and pension reforms
   Explanation: Mukundan specifically cited three major structural reforms: GST, the Insolvency and Bankruptcy Code, and digital public infrastructure built around the JAM trinity (Jan Dhan, Aadhaar, Mobile), which collectively contribute to India's economic stability.

5. Q5.In the GIFT City NRI lending surge, which two institutions dominated the market through the RBI's concessional foreign-currency non-resident deposit swap facility with a combined disbursement of $19.3 billion?

   HDFC Bank and Axis BankHSBC and ICICI BankState Bank of India and ICICI BankHSBC and HDFC Bank
   Explanation: The article explicitly states that HSBC and ICICI Bank disbursed a combined $19.3 billion through the RBI's concessional foreign-currency non-resident deposit swap facility, making them GIFT City's dominant NRI lenders.

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