Daily Quiz — 29 Sep 2026

1. Q1.According to BNP Paribas's analysis in the Economic Times article, what is the primary macroeconomic constraint the RBI faces if Brent crude remains above USD 100 a barrel?

   Limited room to maintain interest rates steady due to inflation concernsInability to conduct open-market operationsForced depreciation of the Indian rupeeMandatory increase in Cash Reserve Ratio by 50 basis points
   Explanation: The article states that high oil prices and broadening inflation are 'leaving the Reserve Bank of India with limited room to hold rates steady,' indicating the RBI has constrained policy flexibility due to inflationary pressures.

2. Q2.What is the stated annual scale of the RBI's net bond sales this financial year, and how does it compare historically?

   ₹1 trillion, the largest in over a decade₹500 billion, the largest in five years₹2 trillion, matching the previous record₹750 billion, exceeding the 2015 peak
   Explanation: The Moneycontrol article explicitly states the RBI has net sold ₹1 trillion in bonds this financial year, which is described as 'its largest annual net bond sale in over a decade.'

3. Q3.According to the RBI Governor's directive on AI governance in banking, what is the critical requirement banks must establish beyond mere technology procurement?

   Board-approved AI governance frameworks with clear accountabilityMandatory use of open-source AI platformsQuarterly third-party AI audits by international firmsComplete replacement of human credit analysts with AI systems
   Explanation: The article states that RBI Governor Sanjay Malhotra urged banks to establish 'board-approved AI governance frameworks with clear accountability, not just technology procurement,' emphasizing governance structures over mere implementation.

4. Q4.What is SEBI's enforcement action against Growpital, and what restitution terms were imposed on promoters?

   Wind-up order with five-year ban and 12% annual interest refunds₹50 crore fine with two-year trading suspensionTemporary suspension pending restructuring reviewAsset freeze with no investor restitution requirement
   Explanation: The Hindu Businessline article details that SEBI ordered wind-up of Growpital's scheme, collected ₹192.88 crore from 5,200+ investors, imposed a five-year securities market ban on key promoters, and mandated refunds with 12% annual interest.

5. Q5.According to the Hindu Businessline analysis, which asset class outperformed over a decade in terms of average returns: equity mutual funds or Portfolio Management Service schemes?

   Equity mutual funds delivered higher average 10-year returnsPMS schemes outperformed mutual funds significantlyBoth asset classes delivered identical returnsReturns were category-dependent with no clear winner
   Explanation: The article analyzing 79 equity mutual funds and 73 PMS schemes found that 'mutual funds delivered a higher average 10-year return than PMS despite the latter's premium positioning,' challenging conventional wisdom about PMS superiority.

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