Business, Economy & Banking Current Affairs MCQs

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The Reserve Bank of India (RBI) has announced interlinking the Unified Payments Interface (UPI) with fast payment systems of other countries to improve cross-border payments. This move supports the G20 Roadmap to make international remittances cheaper, faster, transparent and easier. RBI and NPCI International Payments Limited (NIPL) are working with the European Central Bank to link UPI with TIPS (TARGET Instant Payment Settlement), the Eurosystem’s instant payment platform. The UPI–TIPS link will enable cross-border money transfers between India and the European Union, benefiting users on both sides.

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The Central Board of Direct Taxes (CBDT) has launched the second “Non-intrusive Usage of Data to Guide and Enable (NUDGE)” initiative to strengthen voluntary compliance regarding foreign assets. The campaign focuses on correct reporting in Schedule Foreign Assets (FA) and Foreign Source Income (FSI) in Income Tax Returns (ITRs). The first NUDGE campaign (November 2024) led 24,678 taxpayers to disclose ₹29,208 crore in foreign assets and ₹1,089.88 crore in foreign-source income. CBDT receives foreign asset data under Common Reporting Standards (CRS) and Foreign Account Tax Compliance Act (FATCA) to identify discrepancies.

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The Reserve Bank of India has released the National Strategy for Financial Inclusion (NSFI) 2025–30 as a five-year plan called Panch-Jyoti. The strategy is approved by the Sub-Committee of the Financial Stability and Development Council (FSDC). It sets 5 strategic objectives supported by 47 actionable steps to expand financial access. Financial inclusion means access to banking, payments, savings, credit, and insurance in a safe and affordable way. The pillars focus on better financial services, women-centred inclusion, linking livelihoods with finance, financial education, and strong consumer protection.

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Reserve Bank of India (RBI) has listed State Bank of India (SBI), HDFC Bank, and ICICI Bank as Domestic Systemically Important Banks (D-SIBs) for 2025. The three banks continue under the same bucketing structure as the previous year. D-SIBs are banks whose failure can severely affect the financial system and national economy. They are considered “too big to fail” due to size, interconnectedness, and critical banking role. RBI identifies D-SIBs based on systemic importance. D-SIBs must maintain additional CET1 capital above regular norms. Banks are categorized into buckets depending on their systemic criticality.

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Securities and Exchange Board of India (SEBI) launched Past Risk and Return Verification Agency (PaRRVA) to improve transparency in financial markets. PaRRVA is a new system to verify and authenticate past performance claims made by regulated market intermediaries. It was launched on a pilot basis by Care Ratings in collaboration with National Stock Exchange (NSE). It applies to SEBI-registered Investment Advisers, Research Analysts, and Algorithmic (Algo) Stock Brokers.

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The Cabinet Committee on Economic Affairs approved the CoalSETU window, a new policy mechanism for long-term coal linkages. CoalSETU is added to the Non-Regulated Sector (NRS) Linkage Auction Policy of 2016. Unlike existing NRS linkages reserved for specific sectors (cement, sponge iron, aluminium, steel, captive power), any domestic industrial consumer can now participate. Coking coal is excluded and traders cannot bid under this window. Linkage holders can use coal for own consumption, washing, or export, but resale within India is prohibited. Export is allowed for up to 50% of allocated coal, and distribution among group entities is permitted.

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Union Minister for Rural Development and Agriculture & Farmers Welfare, Shri Shivraj Singh Chauhan, introduced the Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) or VB–G RAM G Bill, 2025, in the Lok Sabha. The Bill provides a statutory guarantee of 125 days of wage employment every year for rural households. It aims to ensure welfare of the poor and promote comprehensive village development in line with Mahatma Gandhi’s vision of self-reliant and developed villages. The central government has committed over ₹95,000 crore for this initiative. Panchayats will be graded, with additional work assigned to underdeveloped or underperforming panchayats to ensure balanced development.

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Oman introduced its first polymer one-rial banknote, to start circulation on 11 January 2026. It is issued by the Central Bank of Oman, replacing traditional cotton-based notes with durable polymer for longer life and better security. The note size is 145 × 76 mm and showcases Oman’s cultural and economic identity. Front side features the Oman Botanic Garden, symbolising commitment to natural heritage. Rear side shows Sayyid Tariq bin Taimur Cultural Complex, Duqm Port and Refinery, highlighting cultural and economic progress. The polymer notes will circulate alongside existing one-rial notes and remain legal tender.

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The Reserve Bank of India (RBI) released the Report on Trend and Progress of Banking in India 2024-25. The report highlighted the banking sector’s continued resilience, supported by strong balance sheet growth, improved asset quality, and robust profitability. Scheduled Commercial Banks (SCBs) saw double-digit growth in both deposits and credit in FY25, though at a slower pace than FY24. Asset quality improved, with gross non-performing assets (GNPA) ratio falling to 2.2% by March 2025 and 2.1% by September 2025. Strong stress resolution and better credit underwriting contributed to low GNPA levels. Bank profitability remained robust, with return on assets (RoA) at 1.4% and return on equity (RoE) at 13.5% in FY25

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As per recent report by Indian government, India surpassed Japan to become the world’s fourth-largest economy with Gross Domestic Product (GDP) of USD 4.18 trillion. India is expected to overtake Germany to become the third-largest economy by 2030 with projected GDP of USD 7.3 trillion. India remains the world’s fastest-growing major economy despite global trade uncertainties. Real GDP grew 8.2% in Quarter 2 of 2025–26, rising steadily from previous quarters. Growth is driven mainly by strong private consumption and domestic demand. The United States (US) ranks first and China second in global economy size.