Question 1

Consider the following statements with reference to the Sagarmala Programme of the Government of India:
I. The Sagarmala Programme seeks to achieve port-led economic growth through cost-effective and sustainable coastal infrastructure.
II. The success of the Sagarmala Programme is reflected in significant growth in coastal and inland waterway shipping, along with improved global port rankings.
III. Sagarmala 2.0 aims to position India as a global maritime innovation hub aligned with Atmanirbhar Bharat and Viksit Bharat 2047 visions.
Which of the following relationships among the above statements is/are correct?
1. Statement II validates the effectiveness of the strategies envisioned in statement I.
2. Statement III extends the objectives of statement I by embedding them into a future-oriented innovation framework.
3. Statement I contradicts statement III by focusing only on traditional infrastructure instead of modern innovation.
Select the answer using the code given below:

Accepted Answer

1 only. * Relationship 1 is correct: Statement I outlines the infrastructure framework, while Statement II validates it with measurable outcomes (118% increase in coastal shipping, 700% increase in inland waterway cargo, and 9 Indian ports placing in the global top 100). * Relationship 2 is correct: Statement III details "Sagarmala 2.0," which incorporates technological innovation and startups (S212) to align with Atmanirbhar Bharat and Viksit Bharat 2047, effectively extending the physical targets of Statement I. * Relationship 3 is incorrect: There is no contradiction. Sagarmala 2.0 serves as a complementary, modern extension of the foundational framework.

Question 2

An e-commerce revenue model where the seller has control over pricing but doesn't keep products in stock and instead transfers customer orders and shipment details to a third-party supplier, who then ships the goods directly to the customer, is called:

Accepted Answer

Dropshipping Model. * (a) Dropshipping Model is correct: In dropshipping, the seller serves as the storefront ("merchant of record") and dictates retail pricing, but completely outsources warehousing, inventory management, and shipping logistics to a third-party supplier who ships directly to consumers. * (b) Affiliate Revenue Model: Affiliates generate commissions by driving traffic to third-party seller sites; they do not set product prices or handle fulfillment. * (c) Transaction Fee Revenue Model: Income is generated by charging service fees per transaction facilitated on a platform. * (d) Agency Revenue Model: Revenue is earned via service fees performed on behalf of clients, rather than merchandise fulfillment.

Question 3

Which one of the following best describes the key objective of India's 'Open Network for Digital Commerce' (ONDC) initiative?

Accepted Answer

To replace private e-commerce players. * Interoperability Across Networks: Initiated by the DPIIT, Ministry of Commerce, ONDC is an open-standard non-profit initiative designed to democratize e-commerce. By operating on open network protocols instead of enclosed platforms, it allows independent merchants and small businesses to sell products seamlessly across different e-commerce networks, dismantling market-dominant platform monopolies.

Question 4

Which one of the following statements about Unified Payments Interface (UPI) and Central Bank Digital Currency (Digital Rupee) is not correct?

Accepted Answer

UPI transactions are recorded by banks and reflected in bank statements but in case of Digital Rupee, no data is captured in bank statements as transactions are from one wallet to another.. * Statement (a) is correct: UPI functions as a digital overlay channel to shuffle funds held inside banks, while the Digital Rupee represents digital legal tender directly. * Statement (b) is correct: UPI requires backend interbank settlements to clear money, while the Digital Rupee transfers token value directly from wallet to wallet without interbank clearing. * Statement (c) is correct: UPI transactions are tied directly to bank accounts and appear on standard bank statements; Digital Rupee value shuffles between personal digital wallets, leaving bank statements unaffected. * Statement (d) is NOT correct: UPI liabilities belong to the commercial banking entities holding the deposits. In contrast, the Digital Rupee is a direct sovereign liability of the central bank (Reserve Bank of India).

Question 5

Which of the following statements about Real-World Assets (RWA) Tokenization are correct?
1. Tokenization is the process of turning real world assets into digital tokens using blockchain technology.
2. Tokenization of real world assets offers 24x7 access, promoting financial inclusion.
3. Tokenization of real world assets will allow the access to high growth investment opportunities for individuals in India.
Select the answer using the code given below:

Accepted Answer

1, 2 and 3. * Statement 1 is correct: Real-world asset tokenization uses blockchain tech to turn legal ownership rights of tangible or standard financial assets (real estate, commodities, bonds) into tradeable digital tokens. * Statement 2 is correct: Operating on a blockchain ensures continuous 24/7 market access. It lowers investment minimums through fractional shares, facilitating financial inclusion. * Statement 3 is correct: By introducing fractional ownership, tokenization allows retail investors in India to purchase small fractions of high-value, high-growth assets (such as commercial complexes or fine art) that were previously accessible only to high-net-worth individuals.

Question 6

Which of the following statements about M1xchange's role in Micro, Small & Medium Enterprises (MSMEs) financing is/are correct?
1. M1xchange provides collateral based loans to MSMEs.
2. M1xchange facilitates discounting of invoices and Bills of Exchange for MSMEs.
3. M1xchange functions as a credit rating agency for MSMEs.
Select the answer using the code given below:

Accepted Answer

1, 2 and 3. * Statement 1 is incorrect: M1xchange is a TReDS (Trade Receivables Discounting System) platform authorized by the RBI; it facilitates bill discounting rather than issuing collateral-based direct loans. * Statement 2 is correct: Its primary role is to enable MSMEs to secure early liquidity against their trade receivables by auctioning/discounting their invoices against corporate buyers. * Statement 3 is incorrect: M1xchange functions as a trade financing marketplace, not a credit rating agency (credit ratings are handled by entities like CRISIL or ICRA).

Question 7

Consider the following statements in respect of RTGS and NEFT:
I. In RTGS, the settlement time is instantaneous while in case of NEFT, it takes some time to settle payments.
II. In RTGS, the customer is charged for inward transactions while that is not the case for NEFT.
III. Operating hours for RTGS are restricted on certain days while this is not true for NEFT.

Accepted Answer

I only. * Statement I is correct: Real Time Gross Settlement (RTGS) is a financial system that processes fund transfers continuously and instantaneously on an individual transaction-by-transaction basis without any netting. National Electronic Funds Transfer (NEFT) is a batch-based electronic clearing transfer system that processes queued transactions at specific hourly intervals, meaning it takes time to clear. * Statement II is incorrect: Under the service fee rationalization mandated by the Reserve Bank of India, inward digital fund transactions arriving via RTGS or NEFT must be credited absolutely free, with no charges levied on the recipient customer. * Statement III is incorrect: To expand digital banking, the RBI made both centralized systems available 24x7x365 throughout the year, removing previous operational restrictions on weekends or holidays.

Question 8

Consider the following countries:
I. France
II. United Arab Emirates
III. Germany
IV. Singapore
V. Bangladesh

How many countries amongst the above are there other than India where international merchant payments are accepted under UPI?

Accepted Answer

Only two. * Unified Payments Interface (UPI) merchant payments are active internationally at specific merchant venues outside India. * Item I (UAE), Item II (France—officially launched at the iconic Eiffel Tower), and Item IV (Singapore) are countries where international merchant acceptance is live. * Item III (Germany) and Item V (Bangladesh) do not currently support UPI international merchant payment frameworks. * Therefore, exactly three countries on the list are valid merchant acceptance territories.

Question 9

Consider the following statements in respect of the digital rupee:
1. It is a sovereign currency issued by the Reserve Bank of India (RBI) in alignment with its monetary policy.
2. It appears as a liability on the RBI's balance sheet.
3. It is insured against inflation by its very design.
4. It is freely convertible against commercial bank money and cash.

Which of the statements given above are correct?

Accepted Answer

2 and 4 only. * Statement 1 is correct: The Central Bank Digital Currency (CBDC), or e-Rupee, is a sovereign digital currency officially issued by the RBI in complete alignment with its monetary policy parameters. * Statement 2 is correct: Unlike commercial bank ledger digital entries, the Digital Rupee is a direct tokenized legal tender that explicitly appears as a liability on the RBI's balance sheet. * Statement 3 is incorrect: The Digital Rupee operates as a digital counterpart to physical cash and is not inherently insulated or insured against inflation by its design. * Statement 4 is correct: It operates as a fungible legal tender that is freely convertible one-to-one at par (1:1) against physical cash and commercial bank money.

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