Subtopic

Reserve Bank of India & Monetary Policy

Under theme: Indian Economy

52 PYQs. Learn elimination tricks first, then attempt the questions below.

Questions52
Active years13
Tricks15

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Every PYQ in this subtopic — exam mode with autosave, negative marking, and explanations after you submit.

  • 52questions
  • 104minutes
  • −33%per wrong
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Elimination tricks

15 from PYQs

Common distractors and how to eliminate wrong options in this subtopic.

  • 1

    Always check the specific year or act mentioned for definitions, as they can change over time.

  • 1

    Always place currency as the most liquid asset, as it is cash.

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  • 1

    Avoid absolute statements like 'no minimum requirement'; they are often false in regulatory contexts.

  • 1

    Avoid assuming central bank intervention unless the question explicitly specifies policy actions.

  • 1

    Avoid assuming that certain functions like branch expansion or winding-up are solely government's domain; RBI…

  • 1

    Avoid confusing SLR with other monetary policy tools like CRR or Repo Rate, though all affect liquidity.

  • 1

    Avoid narrowing down PSL categories; remember it's a comprehensive list designed for broad economic and socia…

  • 1

    Avoid options that combine contradictory policy actions (e.g., cutting taxes but increasing interest rates) i…

  • 1

    Avoid options that describe regulatory measures for new loans or capital infusion, which are distinct from as…

  • 1

    Be aware of recent amendments (like 2020) that change the powers and functions of financial institutions like…

  • 1

    Be aware of the historical context of institutions, as bodies can be reformed or replaced, which might be a s…

  • 1

    Be aware of the recent policy changes making major digital payment systems like RTGS and NEFT available 24x7.

  • 1

    Clearly understand that higher interest rates in a major economy attract capital, leading to capital flight f…

  • 1

    Connect policy rate changes directly to the RBI's monetary policy stance (tightening or easing).

  • 1

    Differentiate between statutory reserves for systemic liquidity and banks' operational cash management for da…

PYQs in this subtopic

2013
7
2014
3
2015
4
2016
2
2017
3
2018
4
2019
5
2020
4
2021
7
2022
4
2023
4
2024
3
2025
2
UPSC Prelims 2018 hard Economy Open full page

Consider the following events:
1. The first democratically elected communist party government formed in a State in India.
2. India's then largest bank, 'Imperial Bank of India', was renamed 'State Bank of India'.
3. Air India was nationalised and became the national carrier.
4. Goa became a part of independent India.

Which of the following is the correct chronological sequence of the above events?

UPSC Prelims 2018 easy Economy Open full page

Consider the following statements:

1. Capital Adequacy Ratio (CAR) is the amount that banks have to maintain in the form of their own funds to offset any loss that banks incur if the account-holders fail to repay dues.
2. CAR is decided by each individual bank.

Which of the statements given above is/are correct?

UPSC Prelims 2018 medium Economy Open full page

Consider the following statements:

1. The Reserve Bank of India manages and services Government of India Securities but not any State Government Securities.
2. Treasury bills are issued by the Government of India and there are no treasury bills issued by the State Governments.
3. Treasury bills offer are issued at a discount from the par value.

Which of the statements given above is/are correct?

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104 min · −33% negative · explanations after submit

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UPSC Prelims 2017 medium Economy Open full page

What is the purpose of setting up of Small Finance Banks (SFBs) in India?

1. To supply credit to small business units
2. To supply credit to small and marginal farmers
3. To encourage young entrepreneurs to set up business particularly in rural areas.

Select the correct answer using the code given below:

UPSC Prelims 2017 medium Economy Open full page

Which of the following statements is/are correct regarding the Monetary Policy Committee (MPC)?

1. It decides the RBI’s benchmark interest rates.
2. It is a 12-member body including the Governor of RBI and is reconstituted every year.
3. It functions under the chairmanship of the Union Finance Minister.

Select the correct answer using the code given below :

UPSC Prelims 2017 easy Economy Open full page

Which of the following statements best describes the term ‘Scheme for Sustainable Structuring of Stressed Assets (S4A)’, recently seen in the news?

Practice all 52 PYQs in one test

104 min · −33% negative · explanations after submit

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UPSC Prelims 2016 medium Economy Open full page

The establishment of “Payment Banks’ is being allowed in India to promote Financial Inclusion. Which of the following statements is/are correct in this context?

1. Mobile telephone companies and supermarket chains that are owned and controlled by residents are eligible to be promoters of Payment Banks.
2. Payment Banks can issue both credit cards and debit cards.
3. Payment Banks cannot undertake lending activities.

Select the correct answer using the code given below:

UPSC Prelims 2016 medium Economy Open full page

What is/are the purpose/purposes of the ‘Marginal Cost of Funds based Lending Rate (MCLR)’ announced by RBI?

1. These guidelines help improve the transparency in the methodology followed by banks for determining the interest rates on advances
2. These guidelines help ensure availability of bank credit & interest rates which are fair to the borrowers as well as the banks

Select the correct answer using the code given below:

UPSC Prelims 2015 medium Economy Open full page

‘Basel III Accord’ or simply ‘Basel III’, often seen in the news, seeks to -

UPSC Prelims 2015 easy Economy Open full page

Which reference to inflation in India, which of the following statements is correct?

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