Daily Quiz — 02 May 2026

1. Q1.As of April 30, 2026, what percentage of ₹2000 denomination banknotes has been returned to the RBI since their withdrawal was announced in May 2023?

   98.47%95.23%96.80%99.10%
   Explanation: According to the RBI report, 98.47% of ₹2000 denomination banknotes have been returned, leaving only ₹5,451 crore worth still in circulation as of April 30, 2026.

2. Q2.What was the sharpest monthly rise in business inflation expectations recorded in the IIM Ahmedabad survey in March (April 2026 MPC meeting context), and to what level did expectations surge?

   100 basis points to 5.29%75 basis points to 4.85%100 basis points to 6.10%50 basis points to 5.29%
   Explanation: Business inflation expectations surged 100 basis points to 5.29% in March, marking the sharpest monthly rise in the nine-year history of the IIM Ahmedabad survey, even as the MPC held rates steady.

3. Q3.According to a McKinsey report on AI in banking, what is the primary reason banks are failing to realise the promised 30–45% cost reductions in customer operations?

   They are layering AI tools onto outdated legacy systems and broken processesThey are selecting inferior AI technology compared to global peersRegulatory restrictions prevent full AI deployment in customer operationsInsufficient data availability limits AI model training in Indian banks
   Explanation: The McKinsey report finds that banks are layering new AI tools onto outdated legacy systems and broken processes, and that the competitive gap is now determined by operating model design rather than technology selection.

4. Q4.Under Capital Small Finance Bank's plan to seek universal bank status, what two milestones must the bank achieve, and by when does it target to meet them?

   Total business of ₹34,000 crore and 300 branches by March 2029Total business of ₹40,000 crore and 250 branches by March 2028Net profit of ₹200 crore and 300 branches by March 2030Total business of ₹34,000 crore and 350 branches by March 2027
   Explanation: Capital SFB plans to apply for universal bank status once its total business reaches ₹34,000 crore and its branch count hits 300, with a target timeline of March 2029.

5. Q5.What was the key legal basis on which the Bombay High Court set aside the ₹1,524-crore Integrated GST demand on Tata Sons related to payments made to NTT Docomo?

   Arbitral damages are compensatory and do not constitute consideration for a taxable service under the CGST ActCross-border payments to foreign entities are exempt from Integrated GST under bilateral tax treatiesThe payment was classified as a capital receipt and therefore outside the GST frameworkTata Sons qualified for an exemption as a Core Investment Company under RBI regulations
   Explanation: The Bombay High Court ruled that the arbitral damages paid to NTT Docomo were compensatory in nature and did not constitute consideration for a taxable service, rejecting the tax department's argument that the payment qualified as a supply for 'tolerating an act' under Schedule II of the CGST Act.

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