Stay Tuned with Daily Current Affairs Newspaper Quiz for UPSC 2026
Question 1
Economy | Microfinance Institutions | Medium | The Hindu
SOURCE
Consider the following:
1. Microfinance Institutions are regulated by the RBI under NBFC framework.
2. The Microfinance Institutions should have Gross Non-Performing Assets (NPA) less than 2% in order to be eligible for registration.
Which of the statements above is or are correct?
A. 1 only
B. 2 only
C. Both 1 and 2
D. None of the above
Solution & Detailed Explanation
Answer: (C) Both 1 and 2
Detailed Explanation
- The Last Mile Financier i.e. NBFC-MFI fulfilling the following norms shall be considered eligible to avail financial assistance from NBCFDC:
- a) The NBFC-MFI should be registered with the RBI as Non-Banking Financial Company-Micro Finance Institution (NBFC-MFI).
- b) The NBFC-MFI should be following all RBI norms related to Micro Finance.
- c) The NBFC-MFI should have 3 years of continuous profit track record.
- d) The NBFC-MFI should have Gross Non-Performing Assets (NPA) less than 2% and net NPA below 0. 5% as per their Annual Accounts at the end of the preceding financial year.
- e) The NBFC-MFI should be a member of a Credit Bureau.
- f) The NBFC-MFI should have minimum Capacity Assessment Rating of mfr5 by CRISIL or its equivalent.
- g) The NBFC-MFI should not have defaulted in repayment of outside borrowings in the last three years or undergone a corporate debt re-structuring.
- h) The NBFC-MFI should have proper system for internal accounting, risk management, internal audit, MIS, cash management, etc. and its annual accounts should have been audited in the last three years.
- i) It will be desirable for the NBFC-MFI to have undergone Code of Conduct Assessment (COCA) with a minimum score of 60 or equivalent.
- Further with a view to promoting Startups in consonance with Government of India focus new MFIs may also be considered subject to their complying to above criteria except sub clause (c) and after due diligence/assessment by reputed certification agencies. However, the extent of funding to such Startup will be limited to recommendation of the certification body.
- The NBFC-MFI framework (2014) is a set of regulations by the Reserve Bank of India (RBI) for non-deposit-taking NBFCs that focus on providing microfinance.
- Key aspects include defining microfinance loans as collateral-free loans to households with an annual income up to ₹3,00,000, setting conditions for borrowing, and mandating client protection measures like fair practices and transparency.
- The framework also has specific prudential norms, such as capital requirements and asset classification.
Question 2
International Relations | Maritime Exercise | Medium | The Hindu
SOURCE
Consider the following pairs:
EUNAVFOR – India and Sri Lanka
SLINEX – India and Africa
AIKEYME – India and European Union
How many pairs is or are correctly matched?
A. Only one
B. Only two
C. All three
D. None of the above
Solution & Detailed Explanation
Answer: (D) None of the above
Detailed Explanation
- EUNAVFOR – India and EU
- SLINEX – India and Sri Lanka
- AIKEYME – India and Africa
Question 3
Geography | Hydropower Projects in India | Easy | The Hindu
SOURCE
Consider the following pairs: (Hydropower Project and Rivers)
Ukai Dam – Krishna
Nagarjunasagar Hydro Electric Power plant – Tapi
Maithon Hydel Power Station – Barakar
How many pairs is or are correctly matched?
A. Only one
B. Only two
C. All three
D. None of the above
Solution & Detailed Explanation
Answer: (A) Only one
Detailed Explanation
- Ukai Dam – Tapi River (Gujarat)
- Nagarjunasagar Hydro Electric Power plant – Krishna (Andhra Pradesh)
- Maithon Hydel Power Station – Barakar River (Jharkhand)
Question 4
International Relations | Places In News | Easy | The Hindu
SOURCE
Which among the following nations does not share a land border with Venezuela?
A. Colombia
B. Suriname
C. Brazil
D. Guyana
Solution & Detailed Explanation
Answer: (B) Suriname
Detailed Explanation
