Daily Quiz — 09 May 2026

1. Q1.By how much did India's foreign exchange reserves fall in the reported period, and what was the primary driver of the decline?

   $7.79 billion fall, primarily driven by a $5.02 billion drop in gold reserves$5.02 billion fall, primarily driven by a $2.80 billion drop in foreign currency assets$7.79 billion fall, primarily driven by a $4.50 billion drop in foreign currency assets$2.80 billion fall, primarily driven by a $1.50 billion drop in gold reserves
   Explanation: India's forex reserves fell by $7.79 billion to $690.69 billion, with a sharp $5.02 billion drop in gold reserves being the primary contributor to the decline, alongside a $2.80 billion fall in foreign currency assets.

2. Q2.Under the RBI's new capital recognition flexibility, on what condition can banks count intra-year profits toward their CET1 capital on a quarterly basis?

   Provided financial statements are audited or reviewedProvided the bank maintains a minimum CRAR of 12%Provided profits are approved by the RBI's Board of SupervisionProvided the bank has no pending regulatory penalties
   Explanation: The RBI permits banks to count intra-year profits toward CET1 capital quarterly only if financial statements are audited or reviewed, ensuring prudential safeguards are maintained alongside the capital adequacy flexibility.

3. Q3.What is the tightened execution window proposed by SEBI for open market share buybacks through stock exchanges, replacing the earlier six-month limit?

   66 working days45 working days90 working days30 working days
   Explanation: SEBI's proposal replaces the earlier six-month execution window for open market share buybacks with a tightened window of 66 working days, aimed at making the process faster and more transparent.

4. Q4.According to SBI's FY26 results, what was the bank's record annual net profit, and what key factor drove the improvement?

   ₹80,032 crore, driven by lower loan-loss provisions and improved asset quality₹75,432 crore, driven by higher net interest margins and deposit growth₹80,032 crore, driven by higher fee income and treasury gains₹85,000 crore, driven by strong credit growth and reduced operating costs
   Explanation: SBI posted a record annual net profit of ₹80,032 crore for FY26, driven by lower loan-loss provisions and improved asset quality, as stated by SBI Chairman Challa Sreenivasulu Setty.

5. Q5.The Corporate Laws (Amendment) Bill, 2026 proposes a cooling-off period barring auditors from providing non-audit services to former clients. What is the proposed duration, and by how much do Big Four auditors warn it could raise compliance costs?

   Three years; compliance costs could rise by 20–30%Two years; compliance costs could rise by 15–25%Three years; compliance costs could rise by 30–40%Five years; compliance costs could rise by 20–30%
   Explanation: The bill proposes a three-year cooling-off period for auditors, and Big Four auditors have warned this could raise compliance costs for Indian companies by 20–30%, a restriction critics note is globally unprecedented.

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