Reserve Bank of India Interview Questions and Answers

Monetization of budget deficit refers to the process of financing government spending by printing new money or borrowing from the central bank.

• It involves creating new money to finance government spending

• It can lead to inflation and devaluation of currency

• It can also lead to increased government debt

• Examples include quantitative easing and deficit financing

• It is often used as a last resort when other financing opt...read more

Yes, India can achieve 5 Trillion Dollar Economy by focusing on infrastructure, technology, education, and ease of doing business.

• Investment in infrastructure development such as roads, railways, airports, and ports

• Promotion of technology and innovation to increase productivity and efficiency

• Improvement in education and skill development to create a skilled workforce

• Simplification of regulations and procedures to ...read more

Yes, Fin Tech has a greater role to play in the financial sector.

• Fin Tech has revolutionized the financial sector by introducing innovative solutions and improving efficiency.

• It has made financial services more accessible and convenient for customers.

• Fin Tech companies have disrupted traditional banking models by offering alternative lending platforms, digital payment solutions, and robo-advisory services.

• The use ...read more

Central bank digital currency (CBDC) is a digital form of a country's fiat currency issued and regulated by the central bank.

• CBDC is a digital version of a country's currency that is issued and regulated by the central bank.

• It is designed to function as a secure and efficient medium of exchange, just like physical cash.

• CBDC can be used for both retail and wholesale transactions, enabling individuals and businesses...read more

I would have focused on improving the transparency and accountability of RBI policies.

• Introducing regular public disclosures of RBI's decision-making process

• Establishing an independent oversight committee to review RBI policies

• Encouraging more public consultations and feedback on proposed policies

• Increasing transparency in RBI's communication with the public and media

• Strengthening the whistleblower protection fram...read more

Banks are financial institutions that provide various services such as deposits, loans, and investments.

• Banks offer services like savings accounts, checking accounts, and loans to individuals and businesses.

• They play a crucial role in the economy by facilitating financial transactions and providing capital for investments.

• Banks are regulated by government authorities to ensure stability and protect customers' fund...read more