Q360. Which institution played a leading role in expanding microfinance and self-help-group bank linkages?
[SSC MTS, 21 Oct Shift 2 2024]
A. State Bank of India
B. Reserve Bank of India
C. Central Bank of India
D. NABARD
Answer: (D) NABARD
Explanation: NABARD pioneered the Self-Help Group–Bank Linkage Programme, encouraging collective savings and bank borrowing among underserved groups. Its developmental focus complements RBI supervision and commercial banks’ actual delivery of loans.
Q359. Which organisation launched the Self-Help Group–Bank Linkage Programme in 1992?
[SSC MTS, 22 Oct Shift 2 2024]
A. SEBI
B. NABARD
C. SBI
D. RBI
Answer: (B) NABARD
Explanation: NABARD introduced the programme to build formal links between community self-help groups and banks. The approach supports thrift, group-based financial discipline and access to institutional credit for underserved rural households.
Q358. Why did many central banks raise interest rates after the pandemic?
(I) Many raised policy rates.
(II) Central banks believe monetary tightening can reduce inflation.
[UPSC CSE Prelims 2023]
A. Both statements are true, and II explains I
B. Both true, but II does not explain I
C. I true and II false
D. I false and II true
Answer: (A) Both statements are true, and II explains I
Explanation: Following the pandemic, many economies faced elevated consumer-price inflation. Higher policy interest rates restrain borrowing and aggregate demand, potentially easing inflation. That transmission explains why central banks adopted tighter policies, although supply disruptions also contributed to rising prices.
Q357. Which RBI action is associated with sterilisation?
[UPSC CSE Prelims 2023]
A. Open market operations
B. Supervision of payment systems
C. Cash management for governments
D. Regulation of non-banking lenders
Answer: (A) Open market operations
Explanation: Sterilisation neutralises the liquidity impact of foreign-exchange intervention. If buying foreign currency puts additional rupees into circulation, the RBI can sell government securities to absorb them. Such offsetting operations belong to monetary management rather than routine bank supervision.
Q356. With reference to Central Bank Digital Currencies, can payments avoid dollar/SWIFT channels and can transfers carry programmed spending conditions?
[UPSC CSE Prelims 2023]
A. Only the first is possible
B. Only the second is possible
C. Both are possible
D. Neither is possible
Answer: (C) Both are possible
Explanation: CBDC systems can enable direct cross-border value transfers without necessarily using conventional correspondent-bank messaging. Digital units may also be programmable to restrict their permitted use or spending period. Technological design and legal permission determine practical implementations.
Q355. Under priority-sector norms, do qualifying bank loans to micro, small and medium enterprises count towards priority-sector lending?
[UPSC CSE Prelims 2023]
A. No MSME loans qualify
B. Qualifying MSME loans are included
C. Only loans to large corporations qualify
D. MSME lending is regulated solely by SEBI
Answer: (B) Qualifying MSME loans are included
Explanation: The RBI priority-sector framework recognises eligible credit to micro, small and medium enterprises. This encourages institutional finance for productive firms that may otherwise encounter financing constraints. It is a banking-credit classification, not a securities-regulation programme.
Q354. In India, which institution regulates credit-rating agencies such as ICRA?
[UPSC CSE Prelims 2023]
A. Reserve Bank of India
B. Securities and Exchange Board of India
C. NABARD
D. Competition Commission of India
Answer: (B) Securities and Exchange Board of India
Explanation: Credit-rating agencies evaluate debt issuers and instruments for investors and are registered under SEBI regulations. RBI separately regulates banks and several lending institutions. The distinction matters because a rating agency assesses credit quality without itself becoming the banking supervisor.
Q353. The SHG–Bank Linkage Programme was initiated primarily through which institution?
[UPSC CSE Prelims 2023]
A. State Bank of India
B. NABARD
C. SEBI
D. National Housing Bank
Answer: (B) NABARD
Explanation: NABARD began the SHG–Bank Linkage Programme in 1992, linking small community savings groups with formal credit. Regional rural banks and commercial banks subsequently expanded outreach. It is inaccurate to attribute the programme’s establishment to one commercial bank alone.
Q352. What does the abbreviation BFSI stand for?
[SSC CGL Tier I 2023]
A. Banking, Financial Services and Inflation
B. Banking, Financial Services and Investment
C. Banking, Financial Services and Insurance
D. Banking, Fiscal Services and Index Funds
Answer: (C) Banking, Financial Services and Insurance
Explanation: BFSI collectively refers to banking firms, non-bank financial service providers and insurance businesses. It is used as an industry grouping for products, employment and regulation, rather than an economic measure of inflation or a particular investment instrument.
Q351. Which is a scheduled private-sector bank rather than a public-sector bank?
[SSC CGL Tier I 2023]
A. Canara Bank
B. UCO Bank
C. Indian Overseas Bank
D. Bandhan Bank
Answer: (D) Bandhan Bank
Explanation: Canara Bank, UCO Bank and Indian Overseas Bank are public-sector banks. Bandhan Bank operates in the private sector. Scheduled status indicates inclusion in the Second Schedule of the RBI Act; it does not imply government ownership.
