📘 Recent Current Affairs – February 2026
Page 13 – Banking & Financial Sector Reforms
🔹 Multiple Choice Questions (MCQs)
Q1. The primary objective of the Monetary Policy Committee (MPC) is to:
A) Control fiscal deficit
B) Regulate stock markets
C) Maintain price stability while supporting growth
D) Manage foreign trade
Answer: C
Explanation: The MPC of RBI sets repo rate decisions to control inflation while supporting economic growth.
A) Control fiscal deficit
B) Regulate stock markets
C) Maintain price stability while supporting growth
D) Manage foreign trade
Answer: C
Explanation: The MPC of RBI sets repo rate decisions to control inflation while supporting economic growth.
Q2. Non-Performing Assets (NPAs) indicate:
A) Profitable loans
B) Loans not generating income for banks
C) Government grants
D) Corporate tax revenue
Answer: B
Explanation: NPAs are loans where interest or principal repayment is overdue for more than 90 days.
A) Profitable loans
B) Loans not generating income for banks
C) Government grants
D) Corporate tax revenue
Answer: B
Explanation: NPAs are loans where interest or principal repayment is overdue for more than 90 days.
Q3. The Insolvency and Bankruptcy Code (IBC) aims to:
A) Increase corporate taxes
B) Provide a time-bound insolvency resolution process
C) Reduce digital payments
D) Control imports
Answer: B
Explanation: IBC ensures faster resolution of distressed assets, improving credit discipline.
A) Increase corporate taxes
B) Provide a time-bound insolvency resolution process
C) Reduce digital payments
D) Control imports
Answer: B
Explanation: IBC ensures faster resolution of distressed assets, improving credit discipline.
Q4. Financial inclusion primarily focuses on:
1. Access to banking services
2. Affordable credit
3. Stock market trading for all
A) 1 only
B) 1 and 2 only
C) 2 and 3 only
D) 1, 2 and 3
Answer: B
Explanation: Financial inclusion ensures access to basic banking, savings, insurance, and credit services.
1. Access to banking services
2. Affordable credit
3. Stock market trading for all
A) 1 only
B) 1 and 2 only
C) 2 and 3 only
D) 1, 2 and 3
Answer: B
Explanation: Financial inclusion ensures access to basic banking, savings, insurance, and credit services.
🔹 Analytical Questions
Q5. Discuss the role of the RBI in ensuring macroeconomic stability.
Explanation: RBI regulates inflation, manages currency stability, supervises banks, ensures liquidity, and maintains financial system confidence.
Explanation: RBI regulates inflation, manages currency stability, supervises banks, ensures liquidity, and maintains financial system confidence.
Q6. Evaluate the impact of IBC on India's banking sector reforms.
Explanation: IBC improved recovery rates, reduced bad loans, strengthened credit discipline, and enhanced investor confidence, though delays and capacity constraints remain.
Explanation: IBC improved recovery rates, reduced bad loans, strengthened credit discipline, and enhanced investor confidence, though delays and capacity constraints remain.
20 Marks Mains Model Answer
Q7. “Banking sector reforms are crucial for sustaining high economic growth.” Examine in the context of recent financial sector developments.
Introduction: A strong banking system is the backbone of economic expansion.
Body:
Introduction: A strong banking system is the backbone of economic expansion.
Body:
- Monetary policy reforms and inflation targeting
- IBC and NPA resolution
- Digital banking and UPI revolution
- Financial inclusion via Jan Dhan, DBT, microfinance
- Challenges: capital adequacy, cyber risks, global volatility
© 2026 Shaktimatha Learning
Recent Current Affairs Series – Page 13 (Banking & Financial Sector Reforms)
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