Daily Quiz — 02 Jun 2026

1. Q1.Under the RBI's proposed draft framework for prepaid payment instruments, what is the proposed monthly cap on person-to-person wallet transfers?

   ₹25,000 per month₹50,000 per month₹10,000 per month₹1,00,000 per month
   Explanation: The RBI's draft framework proposes capping person-to-person wallet transfers at ₹25,000 per month, which fintech players argue threatens the commercial viability of wallet-led business models.

2. Q2.What triggered the RBI's review of its Expected Credit Loss (ECL) framework with respect to SME borrowers?

   A sharp rise in SME loan delinquencies across all rating categoriesAll seven domestic rating agencies breaching the observed default rate threshold in the BB categoryRBI's own stress tests revealing systemic underprovisioning in the SME segmentInternational rating agencies downgrading India's SME credit outlook
   Explanation: All seven domestic rating agencies breached the observed default rate threshold in the BB category, which could force banks to apply 150% risk weights to SME borrowers, raising their borrowing costs despite no change in individual credit profiles.

3. Q3.What is the primary driver behind the surge in gold's share of the RBI's net foreign assets to 17.2% as of late May 2026?

   Large-scale physical gold purchases by the RBI in open marketsRepatriation of gold held abroad to domestic vaultsRising global gold prices and rupee depreciationTransfer of government gold reserves to the RBI's balance sheet
   Explanation: The surge in gold's share is driven primarily by rising global gold prices and rupee depreciation rather than significant additions to physical tonnage, meaning valuation effects rather than volume purchases account for most of the increase.

4. Q4.In the Mahindra Manulife Life Insurance joint venture, what is the equity split between Mahindra & Mahindra and Manulife, and what is the initial planned outlay over the first five years?

   50:50 partnership with an initial outlay of ₹3,600 crore74:26 in favour of Mahindra with an initial outlay of ₹1,250 crore50:50 partnership with an initial outlay of ₹1,250 crore51:49 in favour of Manulife with an initial outlay of ₹2,500 crore
   Explanation: The joint venture is structured on a 50:50 basis between Mahindra & Mahindra and Canada's Manulife, with both partners committing up to ₹3,600 crore each and an initial outlay of ₹1,250 crore planned over the first five years.

5. Q5.India's FY26 absolute fiscal deficit stood at ₹15.19 lakh crore, representing what percentage of the revised annual target, and what risk could push FY27 deficit above the budgeted 4.3% of GDP?

   95.0% of the revised target; global commodity price inflation97.5% of the revised target; rising subsidy pressures from the West Asia crisis97.5% of the revised target; slower-than-expected tax revenue growth100% of the revised target; increased defence expenditure commitments
   Explanation: The FY26 deficit of ₹15.19 lakh crore was equivalent to 97.5% of the revised annual target. Rising subsidy pressures stemming from the West Asia crisis are identified as the key risk that could push the FY27 fiscal deficit as high as 4.5% of GDP.

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