Tag: RBI

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“Household savings behaviour is undergoing a structural transformation in India.” Examine the factors driving this shift. Analyse its implications for the economy. Outline measures to strengthen long-term financial savings.

Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment Q5. “Household savings behaviour is undergoing a structural transformation in India.” Examine the factors driving this shift. Analyse its implications for the economy. Outline measures to strengthen long-term financial savings. (15 M) Difficulty Level: Medium Reference: IE Why the question …

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Dollar dominance in global trade and finance constrains the monetary autonomy of emerging economies. Analyse the factors sustaining dollar hegemony. Evaluate its impact on India’s external economic policy.

Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment Q6. Dollar dominance in global trade and finance constrains the monetary autonomy of emerging economies. Analyse the factors sustaining dollar hegemony. Evaluate its impact on India’s external economic policy. (10 M) Difficulty Level: Medium Reference: NIE Why the question The …

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Examine the role of inflation expectations in shaping monetary policy decisions in India. Analyse the challenges in anchoring expectations. Suggest measures to improve credibility.

Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment Q4. Examine the role of inflation expectations in shaping monetary policy decisions in India. Analyse the challenges in anchoring expectations. Suggest measures to improve credibility. (15 M) Difficulty Level: Medium Reference: IE Why the question Tests understanding of monetary policy …

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Digital Food Currency

Source:  TOI Subject:   Economics/Government scheme Context: The Government of India is set to launch a pilot program for Central Bank Digital Currency (CBDC), also termed Digital Food Currency, in February 2026. This initiative targets beneficiaries in Chandigarh, Puducherry, and three districts of Gujarat (Anand, Sabarmati, and Dahod) to streamline the world’s largest free food security …

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Trend and Progress of Banking in India 2024-25 Report

Source:  LM Subject: Economics Context: RBI’s latest “Trend and Progress of Banking in India” report flags a resilient banking system with multi-decadal low NPAs, strong balance-sheet expansion and policy push for safer, more inclusive finance. About Trend and Progress of Banking in India 2024-25 Report: What it is? An annual RBI flagship assessment of banking …

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What are the key challenges in improving liquidity in India’s corporate bond market? Discuss their implications for infrastructure financing.

Topic: Capital Markets Q5. What are the key challenges in improving liquidity in India’s corporate bond market? Discuss their implications for infrastructure financing. (10 M) Difficulty Level: Medium Reference: InsightsIAS Why the question India’s large infrastructure pipeline requires long-term, low-cost capital, and the corporate bond market’s persistent liquidity issues have become a major policy discussion …

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The stability of a modern economy depends less on the quantity of money and more on its credibility. Examine how these shapes monetary management in India.

Topic: Money and Banking Q5. The stability of a modern economy depends less on the quantity of money and more on its credibility. Examine how these shapes monetary management in India. (10 M) Difficulty Level: Medium Reference: InsightsIAS Why the question Because current monetary debates emphasise expectations, trust and institutional credibility over sheer money supply, …

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Interest-rate synchronisation among major economies is increasingly shaping the trajectory of emerging markets. Discuss.

Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment Q5. Interest-rate synchronisation among major economies is increasingly shaping the trajectory of emerging markets. Discuss. (10 M) Difficulty Level: Medium Reference: NIE Why the question: Global interest-rate movements have become synchronised across major economies, directly affecting capital flows, exchange rates, …

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Forex Reserves

Source: BS Context: India’s foreign exchange reserves surged by $4.5 billion, crossing the $702 billion mark for the first time, mainly due to a sharp rise in gold reserves valued at over $108.5 billion. The rise was driven by RBI’s gold purchases and an increase in global gold prices, while foreign currency assets slightly declined …

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Discuss the macroeconomic factors behind the recent depreciation of the Indian rupee. What policy measures can be adopted to mitigate its adverse impacts?

Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment Q6. Discuss the macroeconomic factors behind the recent depreciation of the Indian rupee. What policy measures can be adopted to mitigate its adverse impacts? (10 M) Difficulty Level: Medium Reference: IE Why the question The rupee’s slide to ₹88.75/$ in …

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Analyse the phenomenon of stagflation in advanced economies. Evaluate the effectiveness of monetary policy in such contexts. What lessons can India draw for macroeconomic management?

Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment Q6. Analyse the phenomenon of stagflation in advanced economies. Evaluate the effectiveness of monetary policy in such contexts. What lessons can India draw for macroeconomic management? (15 M) Difficulty Level: Medium Reference: NIE Why the question The US Fed’s 2025 …

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What role can monetary and fiscal policies play in safeguarding tariff-affected sectors? Analyse the limitations of RBI interventions. Suggest long-term institutional reforms for external sector stability.

Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment Q5. What role can monetary and fiscal policies play in safeguarding tariff-affected sectors? Analyse the limitations of RBI interventions. Suggest long-term institutional reforms for external sector stability. (15 M) Difficulty Level: Medium Reference: NIE Why the question RBI Governor assures …

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Inflation targeting and the test of credibility

Syllabus: Indian Economy Source:  IE Context The Reserve Bank of India (RBI) released its discussion paper (August 2025) on reviewing the flexible inflation targeting (FIT) framework. With the current 4% CPI target within a 2–6% tolerance band expiring in March 2026, the RBI has cautioned that raising the target could dilute credibility and reverse policy …

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What do you understand by regulatory capture in the banking sector? Critically examine how it undermines financial stability.

Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment Q5. What do you understand by regulatory capture in the banking sector? Critically examine how it undermines financial stability. (10 M) Difficulty Level: Medium Reference: NIE Why the question Global bank failures (Credit Suisse, US regional banks) and lobbying against …

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