✅ Answer: C) 1, 2 and 3All three statements are correct. MPC has 6 members — 3 from RBI (Governor + 2 Deputy Governors) and 3 external members appointed by the government. The Governor is the Chairperson. MPC was established in 2016 under the RBI Act amendment. It decides the repo rate by majority vote.

✅ Answer: B) Repo Rate is always higher than Reverse Repo RateRepo Rate (rate at which RBI lends to banks) is always higher than Reverse Repo Rate (rate at which RBI borrows from banks). This is because banks should always prefer to borrow from RBI at Repo Rate rather than lend to RBI at Reverse Repo Rate — otherwise the system wouldn’t work.

✅ Answer: B) Jan Dhan, Aadhaar, MobileJAM Trinity = Jan Dhan (bank accounts) + Aadhaar (unique identity) + Mobile (connectivity). This combination enables direct transfer of government benefits to beneficiaries, eliminating middlemen and reducing leakages. Estimated savings: ₹2.23 lakh crore (2014-2022).

✅ Answer: C) ₹2 lakh per customerPayment Banks can accept deposits up to ₹2 lakh per customer. They cannot give loans or issue credit cards. They focus on financial inclusion through mobile banking. Examples: Paytm Payments Bank, India Post Payments Bank, Airtel Payments Bank.

✅ Answer: B) Liquid assets like gold and government securitiesSLR (Statutory Liquidity Ratio) requires banks to maintain a certain percentage of their deposits in liquid assets — gold, government securities, and other approved securities. Unlike CRR (where banks earn no interest), banks earn interest on SLR assets.

✅ Answer: C) Providing loans directly to farmersRBI does NOT provide loans directly to farmers. That is done by commercial banks, cooperative banks, and NABARD. RBI’s functions include: issuing currency, banker to government, banker’s bank (lender of last resort), monetary policy, foreign exchange management, and regulation of banks.

✅ Answer: B) Large transactions (minimum ₹2 lakh)RTGS (Real Time Gross Settlement) is used for large transactions with a minimum of ₹2 lakh. Settlement happens in real-time. NEFT (National Electronic Funds Transfer) has no minimum amount. IMPS (Immediate Payment Service) is for instant transfers up to ₹5 lakh.

✅ Answer: C) 40% of ANBCThe Priority Sector Lending (PSL) target for domestic commercial banks is 40% of Adjusted Net Bank Credit (ANBC). For Regional Rural Banks (RRBs) and Small Finance Banks (SFBs), the target is 75% of ANBC. Agriculture sub-target is 18% of ANBC.

✅ Answer: B) Ministry of Finance, Government of IndiaThe ₹1 note is issued by the Ministry of Finance, Government of India (not RBI). All other currency notes (₹2, ₹5, ₹10, ₹20, ₹50, ₹100, ₹200, ₹500, ₹2000) are issued by RBI. The ₹1 note bears the signature of the Finance Secretary, not the RBI Governor.

✅ Answer: C) It provides 180 days for resolution (extendable to 270 days)The IBC 2016 provides a time-bound resolution process of 180 days, extendable to 270 days. Cases are handled by the National Company Law Tribunal (NCLT). Both creditors (banks) and debtors can initiate insolvency proceedings. If no resolution is found, the company goes for liquidation.