Business, Economy & Banking Current Affairs MCQs

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Recently, the Reserve Bank of India (RBI) directed all Scheduled Commercial Banks, Small Finance Banks, Payments Banks, and Co-operative Banks to use the Financial Fraud Risk Indicator (FRI). FRI was launched by the Digital Intelligence Unit (DIU) of the Department of Telecommunications (DoT). It is a risk-based tool that marks a mobile number as Medium, High, or Very High financial fraud risk. It helps banks, Non-Banking Financial Companies (NBFCs), and Unified Payments Interface (UPI) providers protect customers.

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Recently, India became the world’s fourth largest biofuel consumer, overtaking China for the second year in a row in 2024. The data comes from the Statistical Review of World Energy 2025 by The Energy Institute (EI). India’s biofuel consumption increased by 40% year-on-year (Y-o-Y) to 77 thousand barrels of oil equivalent per day in 2024. Despite higher consumption, India still lags behind China in biofuel production. From 2014 to 2024, India’s biofuel consumption grew at an average annual rate of 31.8%.

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Recently, the Securities and Exchange Board of India (SEBI) launched the VCF Settlement Scheme 2025. The scheme offers a one-time window to resolve compliance issues related to the winding-up of old funds. It is meant for Venture Capital Funds (VCFs) that shifted to the Alternative Investment Fund (AIF) regime but haven’t liquidated their investments. The scheme will remain open from July 21, 2025, to January 19, 2026. Its main goal is to protect investor interests by settling long-pending fund closure cases.

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The Union Minister for Road Transport and Highways announced that India became the third-largest automobile industry in the world with a market size of ₹22 lakh crore. Globally, the United States ranks first with ₹78 lakh crore, followed by China with ₹49 lakh crore. India’s automobile sector contributes 7.1% to the country’s Gross Domestic Product (GDP) and 49% to manufacturing GDP. It is a key driver of India’s manufacturing and economic growth. In FY25, two-wheelers dominated the domestic market with 76.57% share, while passenger cars held 16.80%.

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The Reserve Bank of India (RBI) will shift the Cheque Truncation System (CTS) from batch processing to continuous clearing with settlement on realisation in two phases. The Cheque Truncation System (CTS) in India was introduced by the Reserve Bank of India (RBI). It is an online image-based cheque clearing system where cheque images and Magnetic Ink Character Recognition (MICR) data are sent electronically, stopping physical cheque movement. Benefits include same-day realisation, shorter clearing cycles, easy data storage, and reduced risks. Currently, cheques clear in up to two working days. After the new RBI measures, clearance will happen within hours of submission.

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The Reserve Bank of India (RBI) released a report on Framework for Responsible and Ethical Enablement of Artificial Intelligence (FREE-AI) in the financial sector. FREE-AI Committee was constituted on 6th December 2024 to promote innovation while safeguarding consumer interests. The report prescribes 7 guiding sutras and 26 recommendations under six strategic pillars for responsible AI adoption. Objectives include transparency, accountability, fairness, customer protection, and balancing innovation with risk mitigation. AI benefits include efficiency, automation, data-driven decisions, improved customer experience, fraud prevention, and regulatory compliance.

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Dubai International Airport (DXB), the world’s busiest hub for international travel, launched an AI-powered passenger corridor under the “Travel Without Borders” initiative. The corridor lets up to 10 passengers clear immigration in just 14 seconds using facial recognition and pre-registered biometric data. It eliminates the need for passports, smart gates, or physical checks. Initially, it is rolled out in Terminal 3’s First and Business Class lounges. The system builds on Dubai’s “smart tunnel” introduced in 2020. Artificial Intelligence (AI) verifies passenger data, while suspicious cases are flagged for review.

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The Ministry of Finance removed the 11% import duty on cotton from 19 August to 30 September 2025. Imports earlier had 11% duty since February 2021, including 5% Basic Customs Duty and 5% Agriculture Infrastructure and Development Cess. India imported 39 lakh bales of cotton in the 2024-2025 season, with 2 lakh bales in transit to benefit from this waiver. Cotton imports rose 107.4% from 579.2 million in FY24 to 1.20 billion in FY25, with suppliers like Australia, United States, Brazil, and Egypt. The waiver will ease high input costs, support yarn and fabric exporters, and stabilise markets until the new crop.

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The Union Finance Ministry has introduced a one-time one-way switch facility from the Unified Pension Scheme (UPS) to the National Pension System (NPS). The facility is available to UPS subscribers up to one year before superannuation or three months before voluntary retirement. Employees facing dismissal, removal, or disciplinary action are not eligible for the switch. Once exercised, employees will forfeit UPS benefits, including assured payouts. The move aims to streamline pension benefits and reinforce NPS as a long-term retirement solution.

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Union Minister of Electronics and Information Technology (MeitY) Shri Ashwini Vaishnaw launched India’s first Tempered Glass Manufacturing Facility for Mobile Devices in Noida. The facility is set up by Optiemus Electronics in collaboration with Corning Incorporated, USA, producing tempered glass under the brand “Engineered by Corning”. It will supply products to both domestic and international markets, supporting Make in India and Atmanirbhar Bharat initiatives. India’s electronics manufacturing has grown six times in 11 years to ₹11.5 lakh crore, with exports over ₹3 lakh crore and 2.5 million employed. The initiative aligns with India’s push for self-reliance in electronics, future chip production, and strengthening research and development capabilities.