Daily Quiz — 13 Apr 2026

1. Q1.According to the IIM Lucknow study covering 158 banks across 26 countries, what is the primary consequence for banks with high exposure to carbon-intensive sectors?

   They grow less efficient over time due to rising regulatory risk and NPLsThey generate higher short-term returns but face liquidity constraintsThey attract more foreign direct investment due to industrial exposureThey face increased capital adequacy requirements under Basel III norms
   Explanation: The study found that banks with high exposure to carbon-intensive sectors grow less efficient over time due to rising regulatory risk and non-performing loans, recommending stronger capital buffers and portfolio rebalancing toward low-carbon sectors.

2. Q2.What is the projected issuance volume of insurance surety bonds in India by end-2025, which has drawn regulatory scrutiny over data gaps?

   ₹60,000 crore₹40,000 crore₹80,000 crore₹1 lakh crore
   Explanation: Regulators are examining data gaps in surety bonds amid surging issuance volumes projected to reach ₹60,000 crore by end-2025, with the issue potentially escalating to the Financial Stability and Development Council.

3. Q3.What five pillars did RBI Deputy Governor J. Swaminathan outline in the framework for responsible AI adoption in banking?

   Human accountability, fairness, data governance, institutional maturity, and inclusive designTransparency, cybersecurity, customer consent, algorithmic auditing, and regulatory complianceFairness, automation, risk modelling, customer profiling, and operational efficiencyData privacy, human oversight, fraud detection, credit scoring, and system resilience
   Explanation: The RBI Deputy Governor's five-point framework for responsible AI in banking emphasises human accountability, fairness, data governance, institutional maturity, and inclusive design, cautioning that financial decision-making must remain transparent.

4. Q4.Under India's proposed Partial Credit Guarantee scheme for infrastructure financing, what percentage of project costs would the guarantee cover, and for what duration?

   5–10% of project costs for a two-to-three-year window10–15% of project costs for a one-to-two-year window20–25% of project costs for a five-year window5–10% of project costs for a five-to-seven-year window
   Explanation: The guarantee scheme is designed to cover 5–10% of project costs for a two-to-three-year window, specifically targeting the construction and early stabilisation phases where financing stress is highest.

5. Q5.To what level did mutual fund equity cash holdings drop in March, and what was the approximate extent of the Sensex and Nifty correction that prompted this deployment?

   ₹1.86 lakh crore; Sensex and Nifty each fell 11.5%₹1.50 lakh crore; Sensex and Nifty each fell 8.5%₹2.10 lakh crore; Sensex and Nifty each fell 11.5%₹1.86 lakh crore; Sensex and Nifty each fell 15%
   Explanation: Mutual fund equity cash holdings dropped to a 16-month low of ₹1.86 lakh crore in March as approximately 60% of fund houses deployed reserves during a sharp correction in which both Sensex and Nifty each fell 11.5%.

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