Daily Quiz — 09 Apr 2026

1. Q1.What condition is the RBI proposing to remove for banks to include quarterly profits in their Capital to Risk-weighted Assets Ratio (CRAR) calculations?

   The 25% non-performing asset provisioning deviation conditionThe mandatory Investment Fluctuation Reserve maintenance conditionThe minimum Tier-II capital adequacy conditionThe statutory liquidity ratio compliance condition
   Explanation: The RBI proposes to remove the requirement that banks must not deviate from the 25% NPA provisioning norm as a precondition for recognising quarterly profits in CRAR calculations, aligning banks with NBFCs.

2. Q2.According to the RBI's proposal on Investment Fluctuation Reserve (IFR), how will existing outstanding IFR balances be treated after the requirement is scrapped?

   They will be reclassified as Tier-I capital via transfer to statutory or general reservesThey will be written off against existing non-performing assetsThey will be counted as Tier-II capital under the revised frameworkThey will be distributed to shareholders as a special dividend
   Explanation: The RBI directed that outstanding IFR balances be reclassified as Tier-I capital by transferring them to statutory or general reserves, ensuring no capital is lost in the transition.

3. Q3.What is the deadline for public comments on the RBI's draft directions covering the Investment Fluctuation Reserve removal and related capital norm revisions?

   April 29, 2026March 31, 2026June 30, 2026December 31, 2025
   Explanation: According to the article, the draft directions for the IFR removal and related harmonisation measures are open for public comment until April 29, 2026.

4. Q4.Which new categories of participants is the RBI proposing to allow into the term money market, which was previously restricted to banks and primary dealers?

   All India Financial Institutions, NBFCs, housing finance companies, and corporatesForeign portfolio investors, mutual funds, and insurance companiesState governments, public sector undertakings, and cooperative banksScheduled commercial banks, regional rural banks, and payment banks
   Explanation: The RBI is opening the term money market to non-bank entities including All India Financial Institutions, NBFCs, housing finance companies, and corporates to deepen liquidity and improve policy rate transmission.

5. Q5.What change is the RBI proposing to the Trade Receivables Discounting System (TReDS) to broaden MSME credit access?

   Eliminating due diligence requirements at the onboarding stage for MSMEsReducing the minimum invoice discounting amount on the platformAllowing foreign investors to participate as financiers on TReDSMandating all scheduled commercial banks to register on TReDS
   Explanation: The RBI proposes eliminating due diligence requirements at the onboarding stage for MSMEs on TReDS, aiming to accelerate their access to working capital financing.

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