India Unveils Key Policy Decisions: RBI Rate Cut, Boost for MSMEs, and New Initiatives
December 06, 2025
In a busy 24 hours for Indian policy-making, the Reserve Bank of India (RBI) announced a significant repo rate cut, while the government rolled out enhanced financial support for Micro, Small, and Medium Enterprises (MSMEs) and saw progress in schemes like PM Vishwakarma and Jal Jeevan Mission. Other notable developments include excise reforms, new sustainable aviation fuel targets, and strengthening of international economic ties.
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Question 1 of 20
What was the new repo rate announced by the RBI's Monetary Policy Committee on December 5, 2025?
Correct Answer: B) 5.25%
Full Answer: Ans: b) 5.25%
Full Answer: Ans: b) 5.25%
What policy stance did the RBI's Monetary Policy Committee maintain in its December 5, 2025 meeting?
Correct Answer: B) Neutral
Full Answer: Ans: b) Neutral
Full Answer: Ans: b) Neutral
What was the revised real GDP growth forecast for FY26 by the RBI, as announced on December 5, 2025?
Correct Answer: C) 7.3%
Full Answer: Ans: c) 7.3%
Full Answer: Ans: c) 7.3%
Which of the following measures was announced by the RBI to ensure adequate liquidity in the banking system, alongside the rate cut?
Correct Answer: B) Open Market Operations (OMO) purchases of Government Securities
Full Answer: Ans: b) Open Market Operations (OMO) purchases of Government Securities
Full Answer: Ans: b) Open Market Operations (OMO) purchases of Government Securities
The guarantee ceiling under the Credit Guarantee Trust Fund for Micro and Small Enterprises (CGTMSE) was increased from ā¹5 crore to what amount?
Correct Answer: B) ā¹10 crore
Full Answer: Ans: b) ā¹10 crore
Full Answer: Ans: b) ā¹10 crore
When was the PM Vishwakarma scheme launched to provide holistic support to artisans and craftspeople?
Correct Answer: B) September 2023
Full Answer: Ans: b) September 2023
Full Answer: Ans: b) September 2023
All of the following platforms are mentioned as facilitating market access for artisans under the PM Vishwakarma scheme, EXCEPT:
Correct Answer: D) Amazon
Full Answer: Ans: d) Amazon
Full Answer: Ans: d) Amazon
The 'Health Security and National Security Cess Bill, 2025' proposes to levy a cess on the manufacture of which products?
Correct Answer: B) Pan masala and similar products
Full Answer: Ans: b) Pan masala and similar products
Full Answer: Ans: b) Pan masala and similar products
What is the Sustainable Aviation Fuel (SAF) blending target for international flights by 2030, as approved by the Government of India?
Correct Answer: C) 5%
Full Answer: Ans: c) 5%
Full Answer: Ans: c) 5%
The 'Chintan Shivir' focusing on 'Alternate & Emerging Technologies in E-Motors' was organized by which ministry?
Correct Answer: C) Ministry of Heavy Industries
Full Answer: Ans: c) Ministry of Heavy Industries
Full Answer: Ans: c) Ministry of Heavy Industries
Approximately how many households have been provided with functional tap water connections under the Jal Jeevan Mission?
Correct Answer: C) Over 15 crore
Full Answer: Ans: c) Over 15 crore
Full Answer: Ans: c) Over 15 crore
What is the annual return offered by the Post Office Monthly Income Scheme (POMIS) 2025?
Correct Answer: D) 7.4%
Full Answer: Ans: d) 7.4%
Full Answer: Ans: d) 7.4%
The sixth application round under the Production Linked Incentive (PLI) scheme was opened for which sector to enhance domestic capacity for critical APIs?
Correct Answer: B) Bulk drug manufacturing
Full Answer: Ans: b) Bulk drug manufacturing
Full Answer: Ans: b) Bulk drug manufacturing
The Prime Minister's Office (PMO) complex was recently renamed to what to underscore a commitment to service-oriented governance?
Correct Answer: B) Seva Teerth
Full Answer: Ans: b) Seva Teerth
Full Answer: Ans: b) Seva Teerth
Residences of Governors and Lieutenant Governors were recently redesignated as what?
Correct Answer: B) Lok Bhavan and Lok Niwas
Full Answer: Ans: b) Lok Bhavan and Lok Niwas
Full Answer: Ans: b) Lok Bhavan and Lok Niwas
What is the target for bilateral trade between India and Russia by 2030?
Correct Answer: C) $100 billion
Full Answer: Ans: c) $100 billion
Full Answer: Ans: c) $100 billion
India announced new visa schemes of what duration for Russian tourists to boost people-to-people ties?
Correct Answer: B) 30-day
Full Answer: Ans: b) 30-day
Full Answer: Ans: b) 30-day
What was the cumulative basis points cut in the repo rate this year, as mentioned in the RBI's December 5, 2025 announcement?
Correct Answer: C) 125 bps
Full Answer: Ans: c) 125 bps
Full Answer: Ans: c) 125 bps
The PM Vishwakarma scheme, launched in September 2023, primarily aims to provide holistic support to which group?
Correct Answer: C) Artisans and craftspeople
Full Answer: Ans: c) Artisans and craftspeople
Full Answer: Ans: c) Artisans and craftspeople
What is the Sustainable Aviation Fuel (SAF) blending target for international flights by 2027?
Correct Answer: A) 1%
Full Answer: Ans: a) 1%
Full Answer: Ans: a) 1%