Daily Quiz — 02 Jul 2026

1. Q1.According to the RBI's cumulative repo rate cuts, what is the primary factor driving corporate borrowers to shift their borrowing back to banks instead of debt capital markets?

   The 125 basis point repo rate cuts have narrowed the spread between bank lending rates and corporate bond yieldsBanks have reduced their lending standards and increased credit availabilityThe debt capital markets have been closed for corporate issuancesRBI has mandated that all corporate borrowing must occur through banks
   Explanation: The article explicitly states that RBI's cumulative 125 basis point repo rate cuts have narrowed the gap between bank lending rates and corporate bond yields, making bank credit more attractive relative to capital market borrowing.

2. Q2.What is the capitalisation structure proposed for Airtel Money's NBFC operations, and what are the respective contributions from Airtel and Bharti Enterprises?

   ₹20,000 crore total, with Airtel contributing 70% and Bharti Enterprises 30%₹20,000 crore total, with Airtel contributing 50% and Bharti Enterprises 50%₹10,000 crore total, with Airtel contributing 70% and Bharti Enterprises 30%₹20,000 crore total, with Airtel contributing 30% and Bharti Enterprises 70%
   Explanation: The article clearly states that Airtel Money is to be capitalised with ₹20,000 crore over the coming years, with Airtel contributing 70% and promoter group Bharti Enterprises providing the remaining 30%.

3. Q3.Which Government amendment is being considered to address the systemic credit risk created by fraud-linked promoters?

   Amending Section 164 of the Companies Act, 2013, to bar fraud-linked promoters from serving as directorsAmending Section 195 of the Companies Act, 2013, to require bank approval for director appointmentsCreating a new Section 200 of the Companies Act specifically targeting promoter conductAmending Section 164 of the Banking Regulation Act, 1949, to restrict director appointments
   Explanation: The article states that the Indian government is considering amending Section 164 of the Companies Act, 2013, to bar promoters linked to fraudulent loan accounts from serving as directors in other companies.

4. Q4.What does the NPCI-HSBC alliance enable for Indian travellers using international UPI transactions?

   Instant INR cost visibility at the point of sale for UPI transactionsWaiver of all foreign exchange charges on international UPI paymentsAutomatic conversion of all UPI transactions to cryptocurrencyDirect access to HSBC's loan products at point of sale
   Explanation: The article explicitly states that the partnership gives Indian travellers instant INR cost visibility at the point of sale by integrating real-time foreign exchange pricing into international UPI transactions via direct API connectivity.

5. Q5.According to the RBI's Financial Stability Report, what is the top perceived risk for banks and NBFCs over the next 12 months?

   AI-enabled cyber threatsRising interest rates and monetary tighteningLiquidity crunch in the banking systemCorporate debt restructuring requirements
   Explanation: The article clearly identifies AI-enabled cyber threats as the top perceived risk for banks and non-banking financial companies over the next 12 months, with 42% of surveyed institutions citing geopolitical uncertainty as raising their cyberattack risk.

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