UPSC Prelims Practice Questions — Include proposal to link digital currencies on the BRICS agenda, says RBI
Q1. With reference to the two variants of India's Digital Rupee (e₹) pilots launched by the Reserve Bank of India, consider the following statements: Which of the statements given above is/are correct?
- The wholesale Digital Rupee (e₹-W) pilot was launched for settlement of secondary market transactions in government securities.
- The retail Digital Rupee (e₹-R) pilot was launched ahead of the wholesale pilot in a closed user group.
- Both e₹-W and e₹-R are legal tender issued by the Reserve Bank of India.
- A. 1 and 2 only
- B. 1 and 3 only
- C. 2 and 3 only
- D. 1, 2 and 3
Q2. Which country holds the Chair of the BRICS grouping in 2026 and will therefore host the 18th BRICS Summit?
- A. Brazil
- B. Russia
- C. India
- D. South Africa
Q3. The Reserve Bank of India derives its statutory authority to issue the Digital Rupee (e₹) from which one of the following?
- A. Payment and Settlement Systems Act, 2007
- B. Reserve Bank of India Act, 1934, as amended by the Finance Act, 2022
- C. Foreign Exchange Management Act, 1999
- D. Banking Regulation Act, 1949
Q4. Which one of the following best describes a 'Central Bank Digital Currency (CBDC)' as referred to in the RBI's proposal for the BRICS 2026 agenda?
- A. A privately-issued cryptocurrency whose value is algorithmically linked to a basket of fiat currencies
- B. A stablecoin issued by commercial banks and fully backed by central bank reserves
- C. Sovereign currency issued by a central bank in digital form, recognised as legal tender and exchangeable at par with physical fiat currency
- D. A unit of account created by an international financial institution for the exclusive purpose of cross-border settlement
Q5. As of January 2026, following Indonesia's accession, how many countries are full members of the BRICS grouping?