Reserve Bank of India GK Questions and Answers
21. In order to inject money into the economy, what does RBI do?
- A) Decrease in repo rate
- B) Purchase of securities in open market.
- C) Reduction in CRR and SLR
- D) All of the above.
D) All of the above.
Explanation:
Decrease in repo rate: When the RBI decreases the repo rate, it becomes cheaper for banks to borrow money from the RBI. This encourages banks to borrow more and lend more to businesses and individuals, thereby increasing the money supply in the economy.
Purchase of securities in open market: When the RBI purchases securities in the open market, it injects money into the economy by paying for those securities. This increases the reserves of commercial banks, leading to more lending and higher money supply.
Reduction in CRR and SLR: When the RBI reduces the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) requirements for banks, it frees up more funds for banks to lend. Banks can then use these freed-up funds to extend more loans, thereby injecting money into the economy.
22. The Bill of discounting for the first time was introduced by RBI in the year?
- A) 1952
- B) 1947
- C) 1960
- D) 1958
A) 1952
Explanation: The RBI introduced the Bill of Discounting scheme for the first time in 1952 to provide liquidity to commercial banks by rediscounting their bills of exchange.
23. The symbol of the RBI features:
- A) A tiger
- B) A palm tree
- C) Both a tiger and a palm tree
- D) An elephant
C) Both a tiger and a palm tree
Explanation: The RBI emblem features a palm tree and a tiger.
24. What is the primary function of the RBI?
- A) Printing currency notes only
- B) Regulating commercial banks only
- C) Managing foreign exchange reserves only
- D) All of the above
D) All of the above
Explanation: RBI is responsible for issuing currency, regulating commercial banks, managing foreign exchange reserves, and formulating monetary policy.
25. What is the minimum paid-up capital requirement for a new bank in India as per RBI regulations?
- A) ₹ 1 crore
- C) ₹ 500 crore
- C) ₹ 1000 crore
- D) ₹ 5000 crore
C) ₹ 500 crore
Explanation: As of June 2024, the minimum paid-up capital requirement for a new bank is ₹ 500 crore.
26. What is the name of the digital currency launched by the RBI (as of June 2024)?
- A) e-Rupee
- B) DigiCash
- C) Paytm
- D) PhonePe
A) e-Rupee
Explanation: RBI is currently exploring the launch of a digital rupee (e-Rupee).
27. On whose recommendations was the RBI established?
- A) Chamberlain Commission
- B) Hilton Young Commission
- C) Keynes Commission
- D) None of the above
B) Hilton Young Commission
Explanation: The RBI was established based on the recommendations of the Hilton Young Commission.
28. Which of the following is NOT a tool used by RBI to control the money supply?
- A) Open Market Operations (OMO)
- B) Repo Rate
- C) Cash Reserve Ratio (CRR)
- D) Statutory Liquidity Ratio (SLR)
D) Statutory Liquidity Ratio (SLR)
Explanation: SLR is the minimum percentage of deposits that banks need to maintain in government securities. It doesn’t directly affect the money supply in circulation.
29. What is the main objective of the Monetary Policy Committee (MPC) of the RBI?
- A) Regulating commercial banks
- B) Setting interest rates
- C) Managing foreign exchange reserves
- D) Printing currency notes
B) Setting interest rates
Explanation: The MPC is responsible for formulating monetary policy, which includes setting key interest rates like repo rate.
30. What is the name of the RBI’s online platform for filing complaints against banks?
- A) SHAKTI
- B) Sachet
- C) CMS (Complaint Management System)
- D) PRICOL (Prudential Regulation and Oversight Committee)
B) Sachet
Explanation: Sachet (Scheme for Complaint Handling) is the RBI’s online portal for lodging complaints against banks and other financial entities.