RBI's Annual Report 2025-26 | Top 100 MCQs | RBI Grade B 2026

Introduction and Session Overview

Class Confirmation

• The speaker greets the audience and requests confirmation of audio and video clarity.

• Students confirm that they can hear and see clearly, allowing the session to begin.

MCQ Practice Session

• The focus of the session is on multiple-choice questions (MCQs) related to the RBI annual report for practice purposes.

• The first question pertains to India's GDP growth rate for 2025-26 as per RBI's second advance estimate.

Key Economic Indicators from RBI Annual Report

GDP Growth Rate

• Question one reveals that India's GDP growth rate for 2025-26 is 7.6%, confirmed by students Vinnie and Bodhi.

Global Economic Growth

• The second question addresses global economic growth in 2025 according to IMF estimates, with the correct answer being 3.4%.

Inflation Rates

• For question four, CPI headline inflation averaged at an all-time low of 2.1% in October 2025 during the fiscal year 2025-26.

Monetary Policy Changes

MPC Stance Changes

• Discussion on monetary policy stance changes during fiscal year 2025-26 includes terms like neutral, accommodative, and withdrawal of accommodation. Correct sequence identified as neutral-accommodative-neutral-accommodative-neutral.

Repo Rate Adjustments

• Question five highlights a cumulative reduction in repo rates by 100 basis points during this period, bringing it down to 5.25%. This was noted as an easy question based on prior knowledge from previous classes.

Sectoral Contributions and Fiscal Deficits

Sectoral Growth Insights

• During Q2 FY2526, India’s GDP grew at a notable rate of 8.2%, described as a "Goldilocks" period characterized by high growth coupled with low inflation rates.

Fiscal Deficit Analysis

• The central government's gross fiscal deficit stood at approximately 4.4% of GDP for FY2526, indicating significant financial management challenges faced during this period.

Trade Deficits and Foreign Investments

Merchandise Trade Deficit

• India’s merchandise trade deficit widened significantly to $333.2 billion in FY2526, reflecting ongoing trade imbalances amidst global economic fluctuations.

Foreign Direct Investment Trends

• Net FDI inflows into India were recorded at $7.7 billion while net FPI outflows reached $16.5 billion during FY2526, highlighting contrasting investment trends within the economy.

Digital Payment Ecosystem

Financial Inclusion Index

• RBS financial inclusion index improved significantly to a score of 67 in March 2025 indicating progress towards greater financial accessibility across demographics.

UPI Transaction Growth

• UPI transactions saw substantial growth with volume increasing by approximately 30% while value surged by 20%, showcasing advancements in digital payment systems.

This structured markdown file captures key insights from the transcript while providing timestamps for easy reference back to specific parts of the discussion.

Question and Answers on Financial Regulations

UTI Unique Transaction Identifiers

• The correct answer for the linkage with Bhat Connect is October 7, 2025.

• The directive issued in 2526 aligning India with global CPMIO standards is the Master Directions UTI directions.

Government Borrowings and RBI's Balance Sheet

• For the first half of 2526, the advances limit for government was set at ₹1.5 lakh crores.

• Gross central government market borrowings through dated securities in 2526 were higher than the previous year by 4.8%.

• Domestic assets constituted 29.1% while foreign assets made up 70.9% of RBI's balance sheet.

Surplus Transfers and Risk Management Framework

• Surplus transferred to the government decreased by 6.7% compared to last year.

• The Enterprise-wide Risk Management (ERM) framework rolled out in 2526 focuses on finance risk management.

Central Board Meetings and Deputy Governor Changes

• The number of central board meetings held by RBI was eight.

• M Rajeshwar Rao retired and was replaced by Shri Chandra Murmu on October 9, 2025.

Foreign Exchange Management Act (FEMA)

• Under FEMA, AD category I bonds can issue foreign currency bonds to resident Indians starting from 2526.

• Lending INR to non-residents is a key capability under FEMA regulations.

Strategic Sectors and AI Mission

• Aerospace and defense are not among the seven strategic sectors earmarked for focused policy in Union Budget 202627.

• The India AI mission launched in March 2024 had an outlay of ₹10,372 crores with over 38,000 GPUs onboarded.

External Sector Performance

• Merchandise exports grew by only 0.9%, while imports increased by a significant 7.6%.

• India's forex reserves provided an import cover of about eleven months as per external sector performance metrics.

Digital Payment Trends

• A strong preference for cash usage continues among rural households despite a shift towards digital payments noted in RBI's survey results.

Debt Management Services Agreement

• An agreement for debt management services during 2526 was entered into with Delhi region entities.

Bank Note Indent and Citizens Charter Revision

• Bank note indent placed with printing presses for fiscal year '25-'26 was lower than previous years by approximately ₹2 lakh pieces.

ULI Development Insights

• ULI surpassed over nine crore API calls during its reporting period enabling frictionless credit delivery using consent-based data sharing methods.

Bioarma Shaky Scheme Overview

• The Bioarma Shaky scheme stands for "Strategy for Healthcare Advancement through Knowledge, Technology, and Innovation" with an outlay of ₹10,000 crores over five years.

Monetary Policy Framework Review

• Stakeholder feedback sought on various aspects; one aspect discussed whether to adopt a nominal GDP targeting approach or not which was deemed incorrect as per question context.

Conclusion

• CBDC pilot introduced unique capabilities such as programmability ensuring productive use of public funds within direct benefit transfer schemes.