UPSC Current Affairs Quiz : 29 December 2025

The Current Affairs Quiz is a daily quiz based on the DAILY CURRENT AFFAIRS AND PIB SUMMARY from the previous day, as posted on our website. It covers all relevant news sources and is designed to test your knowledge of current events. Solving these questions will help you retain both concepts and facts relevant to the UPSC IAS civil services exam.

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• Question 1 of 10 1. Question 1 points The ‘Regional Level Pollution Response Exercise (RPREX-2025)’ recently conducted off the Mumbai coast was primarily aimed at validating which of the following? a) Deep Ocean Mission Safety Standards b) Sagar Kavach Coastal Security Protocol c) Maritime Anti-Piracy Doctrine d) National Oil Spill Disaster Contingency Plan (NOSDCP) Correct Solution: D RPREX-2025 is a large-scale exercise led by the Indian Coast Guard (ICG) to test the nation’s preparedness against maritime environmental disasters. Its primary objective is to validate the National Oil Spill Disaster Contingency Plan (NOSDCP). The exercise simulates realistic scenarios, such as the tanker-fishing boat collision used in the Mumbai drill, to ensure that various agencies—including ONGC, port authorities, and state agencies—can coordinate effectively. It focuses on using Pollution Control Vessels (PCVs), skimmers, and containment gear to prevent crude oil from damaging sensitive ecosystems like mangroves and protecting the livelihoods of coastal fishing communities. Incorrect Solution: D RPREX-2025 is a large-scale exercise led by the Indian Coast Guard (ICG) to test the nation’s preparedness against maritime environmental disasters. Its primary objective is to validate the National Oil Spill Disaster Contingency Plan (NOSDCP). The exercise simulates realistic scenarios, such as the tanker-fishing boat collision used in the Mumbai drill, to ensure that various agencies—including ONGC, port authorities, and state agencies—can coordinate effectively. It focuses on using Pollution Control Vessels (PCVs), skimmers, and containment gear to prevent crude oil from damaging sensitive ecosystems like mangroves and protecting the livelihoods of coastal fishing communities.

#### 1. Question

The ‘Regional Level Pollution Response Exercise (RPREX-2025)’ recently conducted off the Mumbai coast was primarily aimed at validating which of the following?

• a) Deep Ocean Mission Safety Standards

• b) Sagar Kavach Coastal Security Protocol

• c) Maritime Anti-Piracy Doctrine

• d) National Oil Spill Disaster Contingency Plan (NOSDCP)

Solution: D

• RPREX-2025 is a large-scale exercise led by the Indian Coast Guard (ICG) to test the nation’s preparedness against maritime environmental disasters. Its primary objective is to validate the National Oil Spill Disaster Contingency Plan (NOSDCP).

• The exercise simulates realistic scenarios, such as the tanker-fishing boat collision used in the Mumbai drill, to ensure that various agencies—including ONGC, port authorities, and state agencies—can coordinate effectively.

• It focuses on using Pollution Control Vessels (PCVs), skimmers, and containment gear to prevent crude oil from damaging sensitive ecosystems like mangroves and protecting the livelihoods of coastal fishing communities.

Solution: D

• Question 2 of 10 2. Question 1 points Regarding the mosquito species Anopheles stephensi, which of the following statements is/are correct? It is a major vector for malaria that thrives primarily in deep forest and rural ecosystems. It has the unique ability to breed in artificial water containers, making it highly adaptable to urban environments. It is responsible for the transmission of Plasmodium falciparum but cannot transmit Plasmodium vivax. Select the correct answer using the code given below: a) 1 and 2 only b) 2 only c) 2 and 3 only d) 1, 2 and 3 Correct Solution: B Anopheles stephensi is a unique challenge in the fight against malaria. Statement 1 is incorrect because it is specifically an urban and peri-urban vector, unlike traditional rural malaria mosquitoes. Statement 2 is correct; its ability to breed in man-made containers (overhead tanks, construction sites, tires) allows it to thrive in high-density cities. Statement 3 is incorrect because this species is an efficient vector for both major human malaria parasites: Plasmodium falciparum and Plasmodium vivax. Its rapid spread in Indian cities like Delhi threatens the national goal of malaria elimination by 2030, as it shifts the disease burden from traditional tribal or rural areas to metropolitan centers. Incorrect Solution: B Anopheles stephensi is a unique challenge in the fight against malaria. Statement 1 is incorrect because it is specifically an urban and peri-urban vector, unlike traditional rural malaria mosquitoes. Statement 2 is correct; its ability to breed in man-made containers (overhead tanks, construction sites, tires) allows it to thrive in high-density cities. Statement 3 is incorrect because this species is an efficient vector for both major human malaria parasites: Plasmodium falciparum and Plasmodium vivax. Its rapid spread in Indian cities like Delhi threatens the national goal of malaria elimination by 2030, as it shifts the disease burden from traditional tribal or rural areas to metropolitan centers.

#### 2. Question

Regarding the mosquito species Anopheles stephensi, which of the following statements is/are correct?

• It is a major vector for malaria that thrives primarily in deep forest and rural ecosystems.

• It has the unique ability to breed in artificial water containers, making it highly adaptable to urban environments.

• It is responsible for the transmission of Plasmodium falciparum but cannot transmit Plasmodium vivax.

Select the correct answer using the code given below:

• a) 1 and 2 only

• c) 2 and 3 only

• d) 1, 2 and 3

Solution: B

• Anopheles stephensi is a unique challenge in the fight against malaria.

• Statement 1 is incorrect because it is specifically an urban and peri-urban vector, unlike traditional rural malaria mosquitoes.

• Statement 2 is correct; its ability to breed in man-made containers (overhead tanks, construction sites, tires) allows it to thrive in high-density cities.

• Statement 3 is incorrect because this species is an efficient vector for both major human malaria parasites: Plasmodium falciparum and Plasmodium vivax. Its rapid spread in Indian cities like Delhi threatens the national goal of malaria elimination by 2030, as it shifts the disease burden from traditional tribal or rural areas to metropolitan centers.

Solution: B

• Anopheles stephensi is a unique challenge in the fight against malaria.

• Statement 1 is incorrect because it is specifically an urban and peri-urban vector, unlike traditional rural malaria mosquitoes.

• Statement 2 is correct; its ability to breed in man-made containers (overhead tanks, construction sites, tires) allows it to thrive in high-density cities.

• Question 3 of 10 3. Question 1 points Consider the following statements regarding Communist Party of India (CPI). Statement I: The Communist Party of India (CPI) shifted towards parliamentary democracy and electoral participation in the post-independence era. Statement II: The party led major agrarian movements such as the Tebhaga movement in Bengal and the Telangana movement in the 1940s. Which one of the following is correct in respect of the above statements? a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I c) Statement-I is correct but Statement-II is incorrect d) Statement-I is incorrect but Statement-II is correct Correct Solution: B Statement I describes the party’s evolution into a mainstream political force that formed elected governments in states like Kerala and West Bengal. Statement II highlights its earlier revolutionary agrarian roots in the 1940s. However, the leadership of agrarian movements like Tebhaga and Telangana does not “explain” the later shift to parliamentary democracy; in fact, the transition to electoral politics was a separate strategic evolution influenced by the changing political landscape of independent India and internal ideological debates. Incorrect Solution: B Statement I describes the party’s evolution into a mainstream political force that formed elected governments in states like Kerala and West Bengal. Statement II highlights its earlier revolutionary agrarian roots in the 1940s. However, the leadership of agrarian movements like Tebhaga and Telangana does not “explain” the later shift to parliamentary democracy; in fact, the transition to electoral politics was a separate strategic evolution influenced by the changing political landscape of independent India and internal ideological debates.

#### 3. Question

Consider the following statements regarding Communist Party of India (CPI).

Statement I: The Communist Party of India (CPI) shifted towards parliamentary democracy and electoral participation in the post-independence era.

Statement II: The party led major agrarian movements such as the Tebhaga movement in Bengal and the Telangana movement in the 1940s.

Which one of the following is correct in respect of the above statements?

• a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I

• b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I

• c) Statement-I is correct but Statement-II is incorrect

• d) Statement-I is incorrect but Statement-II is correct

Solution: B

• Statement I describes the party’s evolution into a mainstream political force that formed elected governments in states like Kerala and West Bengal.

• Statement II highlights its earlier revolutionary agrarian roots in the 1940s.

• However, the leadership of agrarian movements like Tebhaga and Telangana does not “explain” the later shift to parliamentary democracy; in fact, the transition to electoral politics was a separate strategic evolution influenced by the changing political landscape of independent India and internal ideological debates.

Solution: B

• Statement I describes the party’s evolution into a mainstream political force that formed elected governments in states like Kerala and West Bengal.

• Statement II highlights its earlier revolutionary agrarian roots in the 1940s.

• Question 4 of 10 4. Question 1 points With reference to the Indian Pharmacopoeia Commission (IPC), consider the following statements: It is an autonomous institution fully funded by the Government of India. It operates under the administrative control of the Ministry of Chemicals and Fertilizers. Its headquarters is located in Ghaziabad, Uttar Pradesh. Which of the statements given above are correct? a) 1 and 2 only b) 2 and 3 only c) 1 and 3 only (d) 1, 2 and 3 Correct Solution: C The IPC is an autonomous body that sets drug standards (Statement 1) and is headquartered in Ghaziabad (Statement 3). Statement 2 is incorrect. Although the pharmaceutical industry is often associated with the Ministry of Chemicals and Fertilizers, the IPC specifically falls under the Ministry of Health and Family Welfare (MoHFW). This is because its primary mandate is public health and the safety/quality of medicines, which aligns with the Health Ministry’s portfolio. The commission ensures that all drugs sold in India meet the standards listed in the Indian Pharmacopoeia (IP). Incorrect Solution: C The IPC is an autonomous body that sets drug standards (Statement 1) and is headquartered in Ghaziabad (Statement 3). Statement 2 is incorrect. Although the pharmaceutical industry is often associated with the Ministry of Chemicals and Fertilizers, the IPC specifically falls under the Ministry of Health and Family Welfare (MoHFW). This is because its primary mandate is public health and the safety/quality of medicines, which aligns with the Health Ministry’s portfolio. The commission ensures that all drugs sold in India meet the standards listed in the Indian Pharmacopoeia (IP).

#### 4. Question

With reference to the Indian Pharmacopoeia Commission (IPC), consider the following statements:

• It is an autonomous institution fully funded by the Government of India.

• It operates under the administrative control of the Ministry of Chemicals and Fertilizers.

• Its headquarters is located in Ghaziabad, Uttar Pradesh.

Which of the statements given above are correct?

• a) 1 and 2 only

• b) 2 and 3 only

• c) 1 and 3 only

• (d) 1, 2 and 3

Solution: C

• The IPC is an autonomous body that sets drug standards (Statement 1) and is headquartered in Ghaziabad (Statement 3).

• Statement 2 is incorrect. Although the pharmaceutical industry is often associated with the Ministry of Chemicals and Fertilizers, the IPC specifically falls under the Ministry of Health and Family Welfare (MoHFW). This is because its primary mandate is public health and the safety/quality of medicines, which aligns with the Health Ministry’s portfolio. The commission ensures that all drugs sold in India meet the standards listed in the Indian Pharmacopoeia (IP).

Solution: C

• The IPC is an autonomous body that sets drug standards (Statement 1) and is headquartered in Ghaziabad (Statement 3).

• Question 5 of 10 5. Question 1 points With reference to Somaliland, which of the following nations/territories share a land border with it? Djibouti Ethiopia Somalia (including Puntland) Eritrea Select the correct answer using the code given below: a) 1 and 2 only b) 1, 2 and 3 only c) 2, 3 and 4 only d) 1, 2, 3 and 4 Correct Solution: B Somaliland is located in the Horn of Africa. To its west lies Djibouti, and to its south and southwest is Ethiopia. To its east, it borders the rest of Somalia, specifically the autonomous region of Puntland. It does not share a border with Eritrea, which is located further northwest, separated from Somaliland by Djibouti and parts of Ethiopia. To its north, Somaliland has a long coastline along the Gulf of Aden. Incorrect Solution: B Somaliland is located in the Horn of Africa. To its west lies Djibouti, and to its south and southwest is Ethiopia. To its east, it borders the rest of Somalia, specifically the autonomous region of Puntland. It does not share a border with Eritrea, which is located further northwest, separated from Somaliland by Djibouti and parts of Ethiopia. To its north, Somaliland has a long coastline along the Gulf of Aden.

#### 5. Question

With reference to Somaliland, which of the following nations/territories share a land border with it?

• Somalia (including Puntland)

Select the correct answer using the code given below:

• a) 1 and 2 only

• b) 1, 2 and 3 only

• c) 2, 3 and 4 only

• d) 1, 2, 3 and 4

Solution: B

• Somaliland is located in the Horn of Africa. To its west lies Djibouti, and to its south and southwest is Ethiopia. To its east, it borders the rest of Somalia, specifically the autonomous region of Puntland. It does not share a border with Eritrea, which is located further northwest, separated from Somaliland by Djibouti and parts of Ethiopia. To its north, Somaliland has a long coastline along the Gulf of Aden.

Solution: B

• Question 6 of 10 6. Question 1 points In the context of International Relations, the term ‘Litani River’ is most closely associated with which of the following? a) The dispute over the Grand Ethiopian Renaissance Dam b) The boundary between North and South Sudan c) Security arrangements between Israel and Lebanon d) The civil war in Yemen Correct Solution: C The Litani River is a major watercourse in southern Lebanon. It is geographically and politically significant due to its proximity to the Blue Line (the UN withdrawal line). Under UN Security Council Resolution 1701, the area between the Blue Line and the Litani River is designated as a buffer zone that must be kept free of any armed groups other than the Lebanese Armed Forces and UN Interim Force in Lebanon (UNIFIL). It frequently appears in the news regarding tensions between Israel and Hezbollah, making it a focal point of Middle Eastern security arrangements. Incorrect Solution: C The Litani River is a major watercourse in southern Lebanon. It is geographically and politically significant due to its proximity to the Blue Line (the UN withdrawal line). Under UN Security Council Resolution 1701, the area between the Blue Line and the Litani River is designated as a buffer zone that must be kept free of any armed groups other than the Lebanese Armed Forces and UN Interim Force in Lebanon (UNIFIL). It frequently appears in the news regarding tensions between Israel and Hezbollah, making it a focal point of Middle Eastern security arrangements.

#### 6. Question

In the context of International Relations, the term ‘Litani River’ is most closely associated with which of the following?

• a) The dispute over the Grand Ethiopian Renaissance Dam

• b) The boundary between North and South Sudan

• c) Security arrangements between Israel and Lebanon

• d) The civil war in Yemen

Solution: C

• The Litani River is a major watercourse in southern Lebanon. It is geographically and politically significant due to its proximity to the Blue Line (the UN withdrawal line).

• Under UN Security Council Resolution 1701, the area between the Blue Line and the Litani River is designated as a buffer zone that must be kept free of any armed groups other than the Lebanese Armed Forces and UN Interim Force in Lebanon (UNIFIL).

• It frequently appears in the news regarding tensions between Israel and Hezbollah, making it a focal point of Middle Eastern security arrangements.

Solution: C

• The Litani River is a major watercourse in southern Lebanon. It is geographically and politically significant due to its proximity to the Blue Line (the UN withdrawal line).

• It frequently appears in the news regarding tensions between Israel and Hezbollah, making it a focal point of Middle Eastern security arrangements.

• Question 7 of 10 7. Question 1 points With reference to the Communist Party of India (CPI), consider the following statements: It was the first party to form a non-Congress government in an Indian state. The party’s ideology is rooted in Marxism and the socialization of the means of production. It has maintained a consistent and uniform strength across all Indian states since 1950. Which of the above statements are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Correct Solution: C Statement 1 is correct; the CPI formed the first non-Congress government in Kerala in 1957 under M.S. Namboodiripad. Statement 2 is also correct as it remains a party based on Marxist-Leninist ideology, focusing on class struggle and social equality. Incorrect Solution: C Statement 1 is correct; the CPI formed the first non-Congress government in Kerala in 1957 under M.S. Namboodiripad. Statement 2 is also correct as it remains a party based on Marxist-Leninist ideology, focusing on class struggle and social equality.

#### 7. Question

With reference to the Communist Party of India (CPI), consider the following statements:

• It was the first party to form a non-Congress government in an Indian state.

• The party’s ideology is rooted in Marxism and the socialization of the means of production.

• It has maintained a consistent and uniform strength across all Indian states since 1950.

Which of the above statements are correct?

• (a) 1 only

• (b) 2 only

• (c) Both 1 and 2

• (d) Neither 1 nor 2

Solution: C

• Statement 1 is correct; the CPI formed the first non-Congress government in Kerala in 1957 under M.S. Namboodiripad.

• Statement 2 is also correct as it remains a party based on Marxist-Leninist ideology, focusing on class struggle and social equality.

Solution: C

• Statement 1 is correct; the CPI formed the first non-Congress government in Kerala in 1957 under M.S. Namboodiripad.

• Statement 2 is also correct as it remains a party based on Marxist-Leninist ideology, focusing on class struggle and social equality.

• Question 8 of 10 8. Question 1 points With reference to India’s trade dynamics, consider the following: Statement I: A persistent trade deficit can contribute to the depreciation of the rupee. Statement II: A trade deficit implies a higher demand for foreign currency to pay for the excess imports. Which one of the following is correct in respect of the above statements? (a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I (b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I (c) Statement-I is correct but Statement-II is incorrect (d) Statement-I is incorrect but Statement-II is correct Correct Solution: A Statement I is correct: Persistent trade deficits create pressure on the domestic currency, often leading to rupee depreciation. Statement II is correct: When imports exceed exports, importers need more foreign currency (like USD) to pay for goods than exporters are earning. This higher demand for foreign currency (and selling of domestic currency) drives down the value of the domestic currency. Explanation: Statement II provides the economic mechanism (supply and demand of currency) that explains why Statement I happens. Incorrect Solution: A Statement I is correct: Persistent trade deficits create pressure on the domestic currency, often leading to rupee depreciation. Statement II is correct: When imports exceed exports, importers need more foreign currency (like USD) to pay for goods than exporters are earning. This higher demand for foreign currency (and selling of domestic currency) drives down the value of the domestic currency. Explanation: Statement II provides the economic mechanism (supply and demand of currency) that explains why Statement I happens.

#### 8. Question

With reference to India’s trade dynamics, consider the following:

Statement I: A persistent trade deficit can contribute to the depreciation of the rupee.

Statement II: A trade deficit implies a higher demand for foreign currency to pay for the excess imports.

Which one of the following is correct in respect of the above statements?

• (a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I

• (b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I

• (c) Statement-I is correct but Statement-II is incorrect

• (d) Statement-I is incorrect but Statement-II is correct

Solution: A

• Statement I is correct: Persistent trade deficits create pressure on the domestic currency, often leading to rupee depreciation.

• Statement II is correct: When imports exceed exports, importers need more foreign currency (like USD) to pay for goods than exporters are earning. This higher demand for foreign currency (and selling of domestic currency) drives down the value of the domestic currency.

• Explanation: Statement II provides the economic mechanism (supply and demand of currency) that explains why Statement I happens.

Solution: A

• Statement I is correct: Persistent trade deficits create pressure on the domestic currency, often leading to rupee depreciation.

• Explanation: Statement II provides the economic mechanism (supply and demand of currency) that explains why Statement I happens.

• Question 9 of 10 9. Question 1 points Consider the following pairs: Military Exercise : Participating Nation (with India) Desert Cyclone : UAE Hand-in-Hand : China Surya Kiran : Nepal Garuda Shakti : Indonesia How many of the above pairs are correctly matched? (a) Only one pair (b) Only two pairs (c) Only three pairs (d) All four pairs Correct Solution: D Desert Cyclone is with the UAE. Hand-in-Hand is the traditional (though currently suspended) exercise with China. Surya Kiran is with Nepal, and Garuda Shakti is with Indonesia. These exercises are part of India’s military diplomacy, aimed at enhancing mutual understanding of tactics, techniques, and procedures (TTPs) and preparing for peacekeeping or counter-terrorism operations. Incorrect Solution: D Desert Cyclone is with the UAE. Hand-in-Hand is the traditional (though currently suspended) exercise with China. Surya Kiran is with Nepal, and Garuda Shakti is with Indonesia. These exercises are part of India’s military diplomacy, aimed at enhancing mutual understanding of tactics, techniques, and procedures (TTPs) and preparing for peacekeeping or counter-terrorism operations.

#### 9. Question

Consider the following pairs:

Military Exercise : Participating Nation (with India)

• Desert Cyclone : UAE

• Hand-in-Hand : China

• Surya Kiran : Nepal

• Garuda Shakti : Indonesia

How many of the above pairs are correctly matched?

• (a) Only one pair

• (b) Only two pairs

• (c) Only three pairs

• (d) All four pairs

Solution: D

• Desert Cyclone is with the UAE. Hand-in-Hand is the traditional (though currently suspended) exercise with China.

• Surya Kiran is with Nepal, and Garuda Shakti is with Indonesia. These exercises are part of India’s military diplomacy, aimed at enhancing mutual understanding of tactics, techniques, and procedures (TTPs) and preparing for peacekeeping or counter-terrorism operations.

Solution: D

• Desert Cyclone is with the UAE. Hand-in-Hand is the traditional (though currently suspended) exercise with China.

• Question 10 of 10 10. Question 1 points Consider the following statements: Statement-I: Regional Rural Banks (RRBs) are allowed to perform both commercial banking functions and cooperative-style local lending. Statement-II: RRBs were designed as a hybrid model to combine the professional expertise of commercial banks with the local familiarity of cooperatives. Which one of the following is correct in respect of the above statements? (a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I (b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I (c) Statement-I is correct but Statement-II is incorrect (d) Statement-I is incorrect but Statement-II is correct Correct Solution: A Statement-I is correct. RRBs serve a dual purpose: they act as professional financial institutions (like commercial banks) but focus heavily on local, rural credit needs (like cooperatives). Statement-II is also correct and directly explains why RRBs have this dual nature. The Narasimham Committee (1975) felt that commercial banks were too urban-centric and cooperatives lacked professional management. Thus, the hybrid model was created to ensure that rural areas receive institutional credit (for small farmers and artisans) with the efficiency of a modern bank. Their regulation by the RBI and supervision by NABARD further reinforces this professional-yet-local structure. Incorrect Solution: A Statement-I is correct. RRBs serve a dual purpose: they act as professional financial institutions (like commercial banks) but focus heavily on local, rural credit needs (like cooperatives). Statement-II is also correct and directly explains why RRBs have this dual nature. The Narasimham Committee (1975) felt that commercial banks were too urban-centric and cooperatives lacked professional management. Thus, the hybrid model was created to ensure that rural areas receive institutional credit (for small farmers and artisans) with the efficiency of a modern bank. Their regulation by the RBI and supervision by NABARD further reinforces this professional-yet-local structure.

#### 10. Question

Consider the following statements:

Statement-I: Regional Rural Banks (RRBs) are allowed to perform both commercial banking functions and cooperative-style local lending.

Statement-II: RRBs were designed as a hybrid model to combine the professional expertise of commercial banks with the local familiarity of cooperatives.

Which one of the following is correct in respect of the above statements?

• (a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I

• (b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I

• (c) Statement-I is correct but Statement-II is incorrect

• (d) Statement-I is incorrect but Statement-II is correct

Solution: A

• Statement-I is correct. RRBs serve a dual purpose: they act as professional financial institutions (like commercial banks) but focus heavily on local, rural credit needs (like cooperatives).

• Statement-II is also correct and directly explains why RRBs have this dual nature. The Narasimham Committee (1975) felt that commercial banks were too urban-centric and cooperatives lacked professional management. Thus, the hybrid model was created to ensure that rural areas receive institutional credit (for small farmers and artisans) with the efficiency of a modern bank. Their regulation by the RBI and supervision by NABARD further reinforces this professional-yet-local structure.

Solution: A

• Statement-I is correct. RRBs serve a dual purpose: they act as professional financial institutions (like commercial banks) but focus heavily on local, rural credit needs (like cooperatives).

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