Daily Quiz — 08 Apr 2026

1. Q1.What repo rate did the RBI's Monetary Policy Committee decide to hold steady at, and what was the revised FY27 inflation projection announced alongside?

   Repo rate at 5.25%; FY27 inflation projection of 4.6%Repo rate at 6.00%; FY27 inflation projection of 5.1%Repo rate at 5.50%; FY27 inflation projection of 4.2%Repo rate at 5.25%; FY27 inflation projection of 5.4%
   Explanation: The MPC held the repo rate at 5.25% and revised its FY27 inflation projection upward to 4.6%, citing war-related geopolitical risks and higher oil prices.

2. Q2.According to the Supreme Court ruling on bank fraud classification, what is the key procedural requirement banks must fulfil before classifying an account as fraudulent?

   Banks must conduct a mandatory personal hearing with the borrower before classificationBanks must obtain prior approval from the RBI before classifying any account as fraudulentBanks must follow due process including issuing show-cause notices, without requiring an oral hearingBanks must obtain a court order before classifying an account as fraudulent
   Explanation: The Supreme Court ruled that banks must follow due process including issuing show-cause notices, but are not required to provide borrowers a personal or oral hearing before classifying accounts as fraudulent.

3. Q3.In the context of the PFC-REC merger evaluation, what minimum government ownership threshold must be maintained in the combined entity under the Companies Act for it to retain government-company status?

   26 percent49 percent51 percent74 percent
   Explanation: Under the Companies Act, the government must hold at least 51 percent stake to qualify the merged entity as a government company. The combined loan book of PFC and REC would exceed Rs 17 lakh crore.

4. Q4.Morgan Stanley's worst-case scenario for India's FY27 GDP growth, triggered by oil prices reaching $150 per barrel due to the Gulf conflict, projects growth falling to what level while pushing inflation above what threshold?

   5.7% GDP growth; inflation above 6%6.0% GDP growth; inflation above 5.5%5.2% GDP growth; inflation above 7%5.7% GDP growth; inflation above 5%
   Explanation: Morgan Stanley's worst-case scenario with oil at $150 per barrel could drag India's FY27 GDP growth down to 5.7 percent while pushing inflation above 6 percent, significantly worsening the current account deficit and rupee outlook.

5. Q5.Regarding the Credit Line on UPI (CLOU) framework introduced in 2023, which category of financial institutions is currently excluded from offering UPI-linked credit despite their significant presence in retail and MSME lending?

   Regional Rural Banks (RRBs)Non-Banking Financial Companies (NBFCs)Small Finance Banks (SFBs)Payments Banks
   Explanation: The CLOU framework currently excludes Non-Banking Financial Companies (NBFCs) from participating, despite their deep penetration in retail and MSME lending segments where last-mile credit delivery is critical.

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