Dear Readers, Daily Current Affairs Questions Quiz for SBI, IBPS, RBI, RRB, SSC Exam 2025 of 31st December 2025. Daily GK quiz online for bank & competitive exam. Here we have given the Daily Current Affairs Quiz based on the previous days Daily Current Affairs updates. Candidates preparing for IBPS, SBI, RBI, RRB, SSC Exam 2025 & other competitive exams can make use of these Current Affairs Quiz.

 

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1) According to the RBI’s NBFC (Prudential Norms on Capital Adequacy) Amendment Directions, 2026, the 75% risk weight on NBFC lending to high-quality infrastructure projects is applicable when the borrower has repaid at least_________.

(a) 1% of the sanctioned project debt

(b) 2% of the sanctioned project debt

(c) 5% of the sanctioned project debt

(d) 10% of the sanctioned project debt

(e) 15% of the sanctioned project debt

2) For the period January 1, 2026 to June 30, 2026, what is the interest rate on the Floating Rate Savings Bond, 2020 (Taxable)?

(a) 7.70%

(b) 7.95%

(c) 8.00%

(d) 8.05%

(e) 8.10%

3) According to the RBI’s macro stress test projections, what is the baseline Gross Non-Performing Assets (GNPA) ratio of Scheduled Commercial Banks (SCBs) expected to be by March 2027?

(a) 1.5%

(b) 1.9%

(c) 2.1%

(d) 3.2%

(e) 4.2%

4) To support exporters amid global uncertainties, which scheme was operationalised by the Department of Financial Services (DFS) from December 1, 2025, providing a 100% government guarantee for additional loan facilities?

(a) Export Credit Insurance Scheme

(b) Remission of Duties and Taxes on Exported Products (RoDTEP)

(c) Credit Guarantee Scheme for Exporters (CGSE)

(d) Interest Equalisation Scheme for Export Credit

(e) Market Access Initiative (MAI) Scheme

5) During calendar year 2025 (CY25), which bank faced the single largest monetary penalty imposed by the Reserve Bank of India (RBI)?

(a) State Bank of India

(b) Canara Bank

(c) Indian Bank

(d) Jammu & Kashmir Bank

(e) HDFC Bank

6) According to the RBI’s Report on Trend and Progress in Banking (FY25), which category of banks sold the highest proportion of their previous year’s GNPA to Asset Reconstruction Companies (ARCs)?

(a) Public Sector Banks

(b) Private Sector Banks

(c) Cooperative Banks

(d) Regional Rural Banks

(e) Foreign Banks

7) Which recent legislative change enabled the 100% Foreign Direct Investment (FDI) limit in Indian insurance companies, leading to the notification of the Indian Insurance Companies (Foreign Investment) Amendment Rules, 2025?

(a) Insurance Regulatory and Development Authority (Amendment) Act, 2025

(b) Foreign Exchange Management (Insurance) Regulations, 2025

(c) Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025

(d) Companies (Foreign Investment) Amendment Act, 2025

(e) Insurance Act (Second Amendment) Bill, 2025

8) According to the RBI’s stress test results, under a severe stress scenario, how many Scheduled Commercial Banks (SCBs) may need to utilise their Capital Conservation Buffers (CCBs) if fresh capital is not infused?

(a) One bank

(b) Two banks

(c) Three banks

(d) Four banks

(e) Five banks

9) According to the Reserve Bank of India (RBI), household debt in India rose to what percentage of GDP by March 2025?

(a) 35.3%

(b) 38.3%

(c) 40.0%

(d) 41.5%

(e) 41.3%

10) According to the RBI, if the top three individual borrowers of NBFCs default, by how many basis points (bps) would the system-level CRAR decline?

(a) 223 bps

(b) 213 bps

(c) 220 bps

(d) 243 bps

(e) 250 bps

11) What is the title of the official podcast series launched by the Reserve Bank of India (RBI) to enhance public communication and financial awareness?

(a) RBI Connect: Policy to People

(b) RBI Talks: Paisa to Policy

(c) RBI Speaks: Banking Simplified

(d) Paisa aur Niti

(e) Monetary Matters by RBI

12) From which date will the Know Your Vehicle (KYV) requirement be withdrawn for new Car/Jeep/Van FASTag issuances, as announced by the National Highways Authority of India (NHAI)?

(a) 1 January 2026

(b) 15 January 2026

(c) 1 February 2026

(d) 1 March 2026

(e) 1 April 2026

13) As of 2025, the Government of India has extended the import restrictions on low-ash metallurgical coke for which period?

(a) 1 January 2026 to 30 June 2026

(b) 1 October 2025 to 31 March 2026

(c) 1 July 2025 to 31 December 2025

(d) 1 April 2026 to 30 September 2026

(e) 1 January 2026 to 31 December 2026

14) Where will the Indian AI Research Organization (IAIRO) be established as India’s first state-led artificial intelligence research body?

(a) Bengaluru, Karnataka

(b) Hyderabad, Telangana

(c) Pune, Maharashtra

(d) GIFT City, Gujarat

(e) Noida, Uttar Pradesh

15) Which institution did NITI Aayog highlight as a benchmark initiative for the globalisation of higher education in India?

(a) Gujarat University

(b) Gujarat Biotechnology University

(c) Indian Institute of Science, Bengaluru

(d) Jawaharlal Nehru University

(e) National Institute of Biotechnology

16) Who has been appointed as the Chairman of Assam’s 8th State Pay Commission?

(a) Himanta Biswa Sarma

(b) Subhas Das

(c) Sarbananda Sonowal

(d) Jayanta Malla Baruah

(e) Ranjit Kumar

17) What is the Carbon Border Adjustment Mechanism (CBAM) implemented by the European Union from January 1, 2026?

(a) A subsidy for carbon-efficient EU industries

(b) A carbon tax–like levy on imported goods based on their carbon emissions

(c) A voluntary carbon credit trading platform

(d) A ban on imports of steel and aluminium from non-EU countries

(e) A climate fund for developing countries

18) Who assumed charge as the Vice Chief of the Air Staff (VCAS) of the Indian Air Force on January 1, 2026?

(a) Air Marshal Narmdeshwar Tiwari

(b) Air Marshal Rakesh Kumar Singh

(c) Air Marshal Nagesh Kapoor

(d) Air Marshal Vivek Ram Chaudhari

(e) Air Marshal Sandeep Singh

19) Who became the first Muslim and South Asia–born Mayor of New York City, sworn in at the historic City Hall subway station?

(a) Bill de Blasio

(b) Eric Adams

(c) Andrew Yang

(d) Rudy Giuliani

(e) Zohran Mamdani

20) Who was assigned the additional charge of Managing Director & CEO of Canara Bank from January 1, 2026?

(a) K. Satyanarayana Raju

(b) Hardeep Singh Ahluwalia

(c) Rakesh Sharma

(d) Shanti Lal Jain

(e) Rajnish Kumar

21) Which institution is collaborating with the Delhi Government to implement the Intelligent Grievance Monitoring System using AI and data analytics?

(a) IIT Delhi

(b) IIT Bombay

(c) IIT Kanpur

(d) IIIT Hyderabad

(e) NIT Delhi

22) Which organisation signed an MoU with the National Highways Authority of India (NHAI) to strengthen quality control and safety in highway construction projects?

(a) Bureau of Indian Standards (BIS)

(b) Central Road Research Institute (CRRI)

(c) Indian Institute of Technology, Delhi

(d) National Test House (NTH)

(e) National Safety Council (NSC)

23) Who became the highest wicket-taker in Women’s T20I cricket, claiming her 152nd wicket against Sri Lanka?

(a) Deepti Sharma

(b) Harmanpreet Kaur

(c) Jhulan Goswami

(d) Megan Schutt

(e) Shafali Verma

24) What is the tenure of the Floating Rate Savings Bonds (FRSB) issued by the RBI?

(a) 3 years

(b) 7 years

(c) 5 years

(d) 10 years

(e) 15 years

25) According to the RBI stress test, what is the minimum Capital to Risk-Weighted Assets Ratio (CRAR) requirement that no bank is expected to fall below, even under adverse scenarios?

(a) 8%

(b) 8.5%

(c) 9%

(d) 9.5%

(e) 10%

Answers :

1) Answer: B

Short Explanation:

The Reserve Bank of India (RBI) has eased capital adequacy norms for Non-Banking Finance Companies (NBFCs) lending to high-quality infrastructure projects through the NBFC (Prudential Norms on Capital Adequacy) Amendment Directions, 2026.

The RBI has reduced risk weights on such exposures, allowing a 75% risk-weight if the borrower has repaid at least 2% of the sanctioned project debt, compared to the earlier draft requirement of 5–10% repayment.

Detailed Explanation:

The Reserve Bank of India (RBI) has eased capital adequacy norms for Non-Banking Finance Companies (NBFCs) lending to high-quality infrastructure projects through the NBFC (Prudential Norms on Capital Adequacy) Amendment Directions, 2026.

The RBI has reduced risk weights on such exposures, allowing a 75% risk-weight if the borrower has repaid at least 2% of the sanctioned project debt, compared to the earlier draft requirement of 5–10% repayment.

A lower 50% risk-weight will apply if the borrower has repaid at least 5% of the sanctioned project debt, relaxed from the earlier draft threshold of 10% or more.

Lower risk weights reduce the capital that NBFCs must set aside, thereby encouraging lending to operational, lower-risk infrastructure projects.

A project will be treated as “high-quality” if it has completed at least one year of operations after the Commercial Operation Date (COD), has no breach of material covenants, and the exposure is classified as ‘standard’.

Project revenues must arise from government or public authority concessions or contracts, with legal protection of rights throughout the concession period, subject to fulfilment of borrower obligations.

2) Answer: D

Short Explanation:

The Floating Rate Savings Bond, 2020 (Taxable) – FRSB 2020(T) interest rate has been announced for the period January 1, 2026, to June 30, 2026.

As per the Government of India notification dated June 26, 2020, the FRSB interest rate is reset every six months, ensuring linkage with prevailing small savings rates.

For the current half-year, the NSC rate stands at 7.70%, and with the +0.35% spread, the FRSB interest rate is 8.05%.

Detailed Explanation:

The Floating Rate Savings Bond, 2020 (Taxable) – FRSB 2020(T) interest rate has been announced for the period January 1, 2026, to June 30, 2026.

As per the Government of India notification dated June 26, 2020, the FRSB interest rate is reset every six months, ensuring linkage with prevailing small savings rates.

The coupon rate on FRSB is fixed at 35 basis points (0.35%) above the National Savings Certificate (NSC) interest rate.

For the current half-year, the NSC rate stands at 7.70%, and with the +0.35% spread, the FRSB interest rate is 8.05%.

Interest for this period will be paid on July 1, 2026, and since the bond is taxable, the interest earned is added to the investor’s income and taxed according to the applicable income tax slabs.

3) Answer: B

Short Explanation:

The Reserve Bank of India (RBI) projects that Gross Non-Performing Assets (GNPAs) of Scheduled Commercial Banks (SCBs) will improve to 1.9% by March 2027 under the baseline scenario, from 2.1% in September 2025, indicating continued improvement in asset quality.

These projections are based on macro stress tests conducted on 46 major banks, aimed at assessing the resilience of the banking system against adverse macroeconomic shocks.

Detailed Explanation:

The Reserve Bank of India (RBI) projects that Gross Non-Performing Assets (GNPAs) of Scheduled Commercial Banks (SCBs) will improve to 1.9% by March 2027 under the baseline scenario, from 2.1% in September 2025, indicating continued improvement in asset quality.

These projections are based on macro stress tests conducted on 46 major banks, aimed at assessing the resilience of the banking system against adverse macroeconomic shocks.

Under Adverse Scenario-1, the GNPA ratio may increase to 3.2%, while under Adverse Scenario-2, it could rise further to 4.2% by March 2027, reflecting potential stress conditions.

Despite severe stress assumptions, no bank is expected to breach the minimum Capital to Risk-Weighted Assets Ratio (CRAR) requirement of 9%, highlighting strong capital buffers across the banking system.

The aggregate CRAR of banks is projected to decline marginally from 17.1% (September 2025) to 16.8% (March 2027) under the baseline scenario, and to 14.5% and 14.1% under the two adverse scenarios.

The Common Equity Tier-1 (CET1) ratio is expected to improve slightly to 14.8% by March 2027 under the baseline, but may fall to 12.7% and 12.3% under adverse scenarios.

4) Answer: C

Short Explanation:

Exports are a critical pillar of India’s economy, contributing nearly 21% of GDP, generating robust foreign exchange inflows, supporting the current account balance, and ensuring macroeconomic stability.

To support exporters amid global uncertainties and external headwinds, the Department of Financial Services (DFS) operationalised the Credit Guarantee Scheme for Exporters (CGSE) from December 1, 2025, with the Government providing a 100% guarantee for additional loan facilities under the scheme.

Detailed Explanation:

Exports are a critical pillar of India’s economy, contributing nearly 21% of GDP, generating robust foreign exchange inflows, supporting the current account balance, and ensuring macroeconomic stability.

Export-oriented industries employ over 45 million people, both directly and indirectly, while MSMEs contribute about 45% of India’s total exports, underlining their importance in sustained export growth.

To support exporters amid global uncertainties and external headwinds, the Department of Financial Services (DFS) operationalised the Credit Guarantee Scheme for Exporters (CGSE) from December 1, 2025, with the Government providing a 100% guarantee for additional loan facilities under the scheme.

The CGSE provides a credit guarantee to exporters and MSMEs, enabling banks and financial institutions (Member Lending Institutions – MLIs) to extend additional collateral-free credit, thereby improving liquidity and ensuring business continuity.

5) Answer: D

Short Explanation:

The Reserve Bank of India (RBI) imposed nearly ₹27 crore in monetary penalties across 40 instances on banks during calendar year 2025 (CY25) for various regulatory violations.

Jammu & Kashmir Bank faced the single largest penalty among private banks, amounting to ₹3.31 crore in March 2025 for multiple violations, making it the most penalised bank by value in CY25.

Detailed Explanation:

The Reserve Bank of India (RBI) imposed nearly ₹27 crore in monetary penalties across 40 instances on banks during calendar year 2025 (CY25) for various regulatory violations.

Private Sector Banks (PVBs) accounted for the highest penalty burden, paying ₹16.28 crore, which is almost double the amount paid by Public Sector Banks (PSBs).

Jammu & Kashmir Bank faced the single largest penalty among private banks, amounting to ₹3.31 crore in March 2025 for multiple violations, making it the most penalised bank by value in CY25.

Public Sector Banks paid total penalties of ₹8.78 crore, with the State Bank of India (₹1.72 crore) being the most penalised PSB, followed by Canara Bank and Indian Bank.

6) Answer: E

Short Explanation:

The Reserve Bank of India (RBI), in its Report on Trend and Progress in Banking, highlighted significant differences in resolution strategies adopted by banks for stressed loans in FY25.

Foreign banks emerged as the most aggressive sellers, transferring 55.5% of their prior-year GNPA to ARCs, indicating a strong preference for balance-sheet clean-up through market mechanisms.

Detailed Explanation:

The Reserve Bank of India (RBI), in its Report on Trend and Progress in Banking, highlighted significant differences in resolution strategies adopted by banks for stressed loans in FY25.

Private Sector Banks (PVBs) relied heavily on market-based exits, selling 35.9% of their previous year’s Gross Non-Performing Assets (GNPA) to Asset Reconstruction Companies (ARCs), which is nearly 14 times higher than the 2.6–3% sold by Public Sector Banks (PSBs).

Foreign banks emerged as the most aggressive sellers, transferring 55.5% of their prior-year GNPA to ARCs, indicating a strong preference for balance-sheet clean-up through market mechanisms.

At the system level, sales of NPAs to ARCs increased sharply to 12.4% of the previous year’s GNPA in FY25, up from 5.8% in FY24, reflecting a growing shift towards market-based resolution of stressed assets.

7) Answer: C

Short Explanation:

The Ministry of Finance has notified the Indian Insurance Companies (Foreign Investment) Amendment Rules, 2025, aligning regulations with the 100% foreign direct investment (FDI) limit approved by Parliament in December 2025.

This follows the passage of the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025, which allows 100% FDI in insurance companies, replacing the earlier 74% cap under the Insurance Act, 1938, LIC Act, 1956, and IRDAI Act, 1999.

Detailed Explanation:

The Ministry of Finance has notified the Indian Insurance Companies (Foreign Investment) Amendment Rules, 2025, aligning regulations with the 100% foreign direct investment (FDI) limit approved by Parliament in December 2025.

This follows the passage of the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025, which allows 100% FDI in insurance companies, replacing the earlier 74% cap under the Insurance Act, 1938, LIC Act, 1956, and IRDAI Act, 1999.

Under the new rules, an insurance company with foreign investment must have at least one key leadership position (CEO, MD, or Chairperson) held by a resident Indian citizen.

The requirement that a majority of directors and key managerial personnel be Indian residents has been removed, simplifying corporate governance norms for foreign-invested insurance companies.

The notification omits Rule 4A, which earlier required 50% of net profits to be retained in the general reserve if foreign investment exceeded 49% and solvency margins were low, and also prescribed independent director requirements.

8) Answer: D

Short Explanation:

The Reserve Bank of India (RBI) warned that under a moderate stress scenario, two Scheduled Commercial Banks (SCBs) may need to utilise their Capital Conservation Buffers (CCBs) unless fresh capital is infused, and under a severe stress scenario, this number could rise to four banks.

Detailed Explanation:

The Reserve Bank of India (RBI) warned that under a moderate stress scenario, two Scheduled Commercial Banks (SCBs) may need to utilise their Capital Conservation Buffers (CCBs) unless fresh capital is infused, and under a severe stress scenario, this number could rise to four banks.

Capital Conservation Buffers (CCBs), set at 2.5% of risk-weighted assets in India and made up of Common Equity Tier-1 (CET1) capital, act as an extra cushion to absorb losses during stress without affecting credit flow.

The RBI stress test revealed that no bank would fall below the minimum Capital to Risk-Weighted Assets Ratio (CRAR) requirement of 9%, even under adverse scenarios, indicating adequate capital resilience.

9) Answer: E

Short Explanation:

The Reserve Bank of India (RBI) reported that household debt rose to 41.3% of GDP by March 2025, above the five-year average of 38.3%, indicating a sustained rise in borrowing.

Detailed Explanation:

The Reserve Bank of India (RBI) reported that household debt rose to 41.3% of GDP by March 2025, above the five-year average of 38.3%, indicating a sustained rise in borrowing.

Despite the increase, India’s household debt remains lower than most peer emerging economies, suggesting manageable overall risk.

Borrowing by households is primarily for consumption, followed by asset creation and productive purposes, with personal loans constituting 22.3% of consumption-purpose loans.

Housing loans account for 28.6% of household borrowings, while agriculture and business loans together contribute 16.1%, reflecting the diversified nature of household debt.

10) Answer: A

Short Explanation:

The Reserve Bank of India (RBI) stated that if the top three individual borrowers of NBFCs default, the system-level Capital to Risk-Weighted Assets Ratio (CRAR) would fall by 223 basis points (bps), and 9 Non-Banking Finance Companies (NBFCs) would see their CRAR drop below the regulatory minimum of 15%.

Detailed Explanation:

The Reserve Bank of India (RBI) stated that if the top three individual borrowers of NBFCs default, the system-level Capital to Risk-Weighted Assets Ratio (CRAR) would fall by 223 basis points (bps), and 9 Non-Banking Finance Companies (NBFCs) would see their CRAR drop below the regulatory minimum of 15%.

In a more severe scenario, where the top three group borrowers default, the CRAR decline would be 243 bps, with 8 additional NBFCs falling below the 15% capital requirement, highlighting concentration risk in NBFC lending.

RBI liquidity stress tests indicated that NBFCs with negative cumulative liquidity mismatch exceeding 20% over the next year could be 3 under baseline, 4 under medium stress, and 7 under severe stress scenarios, showing potential vulnerability under stressed liquidity conditions.

11) Answer: B

Short Explanation:

The Reserve Bank of India (RBI) has launched an official podcast series titled “RBI Talks: Paisa to Policy” to enhance public communication and financial awareness.

Detailed Explanation:

The Reserve Bank of India (RBI) has launched an official podcast series titled “RBI Talks: Paisa to Policy” to enhance public communication and financial awareness.

The initiative was announced in the Monetary Policy Statement dated December 6, 2024, as part of RBI’s plan to expand its citizen outreach tools.

The podcast aims to simplify complex financial and banking topics for the general public, promoting financial literacy, awareness, and inclusion.

The series is designed to make RBI policies and regulations more accessible, understandable, and citizen-friendly, bridging the gap between policy and people.

The first episode, titled “Demystifying KYC”, explains the concept and importance of Know Your Customer (KYC) in simple and practical terms.

12) Answer: C

Short Explanation:

The National Highways Authority of India (NHAI) has announced the withdrawal of the Know Your Vehicle (KYV) requirement for Car/Jeep/Van FASTag category.

The revised rule will be applicable to all new FASTag issuances from 1st February 2026.

The decision aims to improve commuter convenience and eliminate post-activation hassles faced by private vehicle owners.

Detailed Explanation:

The National Highways Authority of India (NHAI) has announced the withdrawal of the Know Your Vehicle (KYV) requirement for Car/Jeep/Van FASTag category.

The revised rule will be applicable to all new FASTag issuances from 1st February 2026.

The decision aims to improve commuter convenience and eliminate post-activation hassles faced by private vehicle owners.

Earlier, vehicle owners had to undergo KYV verification even after submitting valid documents at the time of FASTag purchase, leading to delays and repeated follow-ups.

For already issued FASTags, KYV will no longer be enforced as a standard requirement.

KYV checks will now be triggered only in exceptional cases, such as

Incorrectly issued FASTags

Loose or tampered FASTags

Suspected misuse or complaints

In the absence of complaints, existing car FASTags will not undergo KYV verification.

13) Answer: A

Short Explanation:

The Government of India has extended the import restrictions on low-ash metallurgical coke for another six months, from 1st January 2026 to 30th June 2026.

The decision was notified by the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry.

Detailed Explanation:

The Government of India has extended the import restrictions on low-ash metallurgical coke for another six months, from 1st January 2026 to 30th June 2026.

The decision was notified by the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry.

Low-ash metallurgical coke, defined as coke having ash content below 18%, including coke fines, coke breeze, and ultra-low phosphorus metallurgical coke, will remain restricted during this period.

Import of low-ash metallurgical coke will be permitted only in accordance with conditions specified by the government, mainly through allocation-based or regulated mechanisms.

Metallurgical coke with ash content above 18% is excluded from the restriction and will continue to be freely importable.

14) Answer: D

Short Explanation:

India is set to strengthen its artificial intelligence research ecosystem with the establishment of the Indian AI Research Organization (IAIRO) at Gujarat International Finance Tec-City (GIFT City), Gandhinagar.

Detailed Explanation:

India is set to strengthen its artificial intelligence research ecosystem with the establishment of the Indian AI Research Organization (IAIRO) at Gujarat International Finance Tec-City (GIFT City), Gandhinagar.

The Gujarat government, led by Chief Minister Bhupendra Patel, has given in-principle approval for this initiative, which will become operational from 1 January 2026.

IAIRO will be India’s first state-led artificial intelligence research body and will function under a Public–Private Partnership (PPP) model, marking a significant step in collaboration between government, industry, and academia.

The organization will be set up through a tripartite partnership involving the Government of Gujarat, the Government of India, and the Indian Pharmaceutical Alliance (IPA).

15) Answer: B

Short Explanation:

A recent NITI Aayog report on the globalisation of higher education praised Gujarat Biotechnology University (GBU) at Gujarat International Finance Tec-City (GIFT City) as a benchmark initiative aligned with national education reforms and India’s goal of becoming a global education hub.

Detailed Explanation:

A recent NITI Aayog report on the globalisation of higher education praised Gujarat Biotechnology University (GBU) at Gujarat International Finance Tec-City (GIFT City) as a benchmark initiative aligned with national education reforms and India’s goal of becoming a global education hub.

The report noted that Gujarat took a forward-looking step in 2020 by establishing GBU at Gandhinagar, positioning the state ahead of others in attracting global academic collaboration and reducing the outflow of Indian students abroad.

According to NITI Aayog, the initiative reflects India’s national vision of internationalising higher education, developing GIFT City as a destination for foreign universities, and retaining domestic intellectual capital.

16) Answer: B

Short Explanation:

Assam became the first state in India to constitute its 8th State Pay Commission, marking a proactive step in government pay reforms.

Former Assam Chief Secretary Subhas Das has been appointed as the Chairman of the 8th State Pay Commission.

Detailed Explanation:

Assam became the first state in India to constitute its 8th State Pay Commission, marking a proactive step in government pay reforms.

The decision was announced by Chief Minister Himanta Biswa Sarma, ahead of the expiry of the 7th State Pay Commission on January 1, 2026.

A Pay Commission is constituted to review and recommend revisions in salaries, allowances, service benefits, and pensions of government employees and pensioners.

The 8th State Pay Commission will replace the existing 7th Pay Commission framework and recommend revised pay structures based on inflation, current economic conditions, and the fiscal capacity of the state.

Former Assam Chief Secretary Subhas Das has been appointed as the Chairman of the 8th State Pay Commission.

17) Answer: B

Short Explanation:

The European Union (EU) has implemented the Carbon Border Adjustment Mechanism (CBAM) from January 1,2026 imposing a carbon-linked levy on carbon-intensive imports such as steel, aluminium, cement, fertilisers, chemicals, glass, and power-related products.

Carbon Border Adjustment Mechanism (CBAM) is a carbon tax–like system imposed by the European Union (EU) on imported goods to account for the carbon emissions generated during their production.

Detailed Explanation:

The European Union (EU) has implemented the Carbon Border Adjustment Mechanism (CBAM) from January 1,2026 imposing a carbon-linked levy on carbon-intensive imports such as steel, aluminium, cement, fertilisers, chemicals, glass, and power-related products.

Carbon Border Adjustment Mechanism (CBAM) is a carbon tax–like system imposed by the European Union (EU) on imported goods to account for the carbon emissions generated during their production.

A key objective of CBAM is to prevent carbon leakage, ensuring that companies do not shift production to countries with weaker environmental regulations to avoid climate costs.

CBAM aims to ensure fair competition by creating a level playing field for EU industries that already operate under the EU Emissions Trading System (ETS).

18) Answer: C

Air Marshal Nagesh Kapoor assumed charge as the Vice Chief of the Air Staff (VCAS) of the Indian Air Force (IAF) on January 1, 2026, succeeding Air Marshal Narmdeshwar Tiwari, who superannuated after 40 years of distinguished service.

19) Answer: E

Short Explanation:

Zohran Mamdani was sworn in as Mayor of New York City just after midnight at the historic City Hall subway station in Manhattan, marking a symbolic start to his tenure.

Detailed Explanation:

Zohran Mamdani was sworn in as Mayor of New York City just after midnight at the historic City Hall subway station in Manhattan, marking a symbolic start to his tenure.

The City Hall subway station, opened in 1904 and closed in 1945, is a heritage landmark; its selection symbolized the “inauguration of a new era” and New York City’s commitment to working people.

Mamdani made history as the first Muslim Mayor of New York City, the first mayor of South Asian origin, the first Africa-born mayor, and at 34 years, the youngest mayor in generations.

20) Answer: B

Canara Bank has assigned additional charge of Managing Director & Chief Executive Officer (MD & CEO) to Hardeep Singh Ahluwalia, with effect from January 1, 2026.

The decision follows the superannuation of former MD & CEO K. Satyanarayana Raju on December 31, 2025.

21) Answer: C

Short Explanation:

The Delhi Government, in collaboration with the Indian Institute of Technology Kanpur, will implement an Intelligent Grievance Monitoring System, aimed at improving speed, transparency, and accountability in public service delivery through artificial intelligence and data analytics.

The announcement was made by Pankaj Kumar Singh, Minister of Information Technology, Delhi, marking a major step towards technology-driven governance.

Detailed Explanation:

The Delhi Government, in collaboration with the Indian Institute of Technology Kanpur, will implement an Intelligent Grievance Monitoring System, aimed at improving speed, transparency, and accountability in public service delivery through artificial intelligence and data analytics.

The announcement was made by Pankaj Kumar Singh, Minister of Information Technology, Delhi, marking a major step towards technology-driven governance.

The new system will integrate multiple grievance portals into a single unified dashboard, enabling holistic monitoring and effective resolution of citizen complaints.

At present, citizens register grievances on multiple independent platforms, which has led to delays in resolution, duplication of complaints, poor inter-departmental coordination, and lack of overall oversight.

22) Answer: D

Short Explanation:

National Test House signed a Memorandum of Understanding with the National Highways Authority of India to strengthen quality control, transparency, and safety in national highway construction projects, supporting India’s vision of world-class infrastructure.

Detailed Explanation:

National Test House signed a Memorandum of Understanding with the National Highways Authority of India to strengthen quality control, transparency, and safety in national highway construction projects, supporting India’s vision of world-class infrastructure.

The MoU was signed on 30 December 2025 at National Highways Authority of India Headquarters, New Delhi, in the presence of Bharat Khera, Additional Secretary, Department of Consumer Affairs, Santosh Kumar Yadav, Chairman of National Highways Authority of India, and Alok Kumar Srivastava, Director General of National Test House.

Under the agreement, National Test House will be empanelled as a recognised laboratory for National Highways Authority of India, enabling it to carry out testing and inspection of samples related to highway construction and allied works.

23) Answer: A

Indian women’s cricket achieved a major milestone as Deepti Sharma became the highest wicket-taker in Women’s Twenty20 International (T20I) cricket.

Deepti Sharma achieved this landmark during the 5th T20I match against Sri Lanka at Thiruvananthapuram, where she claimed her 152nd T20I wicket, surpassing Australia’s Megan Schutt (151 wickets).

24) Answer: B

Floating Rate Savings Bonds, a safe, government-backed investment in India issued by the Reserve Bank of India (RBI), offering a variable interest rate linked to the National Savings Certificate (NSC) rate plus a spread (currently 0.35%), payable semi-annually over a 7-year term, ideal for risk-averse investors seeking stable income, with options for premature withdrawal for seniors. 

25) Answer: C

The RBI stress test revealed that no bank would fall below the minimum Capital to Risk-Weighted Assets Ratio (CRAR) requirement of 9%, even under adverse scenarios, indicating adequate capital resilience.

The aggregate CRAR of 46 major SCBs may decline from 17.1% in September 2025 to 16.8% by March 2027 under the baseline scenario.