Financial Sector Reforms MCQ — 2 Practice Questions with Answers

Practice 2 Financial Sector Reforms multiple-choice questions with detailed answers and explanations. Ideal for RAS/RPSC exam preparation.

2 Questions Indian Economy

Q1. Under the Insurance Laws (Amendment) Act 2025, enforced from February 5, 2026, what is the new FDI limit in the insurance sector?

A 49%

B 74%

C 100% Correct

D 51%

Explanation

The Insurance Laws (Amendment) Act 2025 raised the FDI cap in insurance from 74% to 100%, brought into force on February 5, 2026 via a Gazette notification. Previously, the 2021 amendment had raised it from 49% to 74%.

Q2. Which of the following conditions was retained in the Insurance Laws (Amendment) Act 2025 despite allowing 100% FDI?

A At least 26% shares must be held by Indian public

B Chairman/MD/CEO must be an Indian citizen Correct

C 50% of the board must be Indian nationals

D Foreign insurer must list on Indian stock exchange within 5 years

Explanation

Even with 100% FDI allowed, the Act mandates that the Chairman, Managing Director, or CEO of an insurance company must be an Indian citizen. This ensures management and operational control remains with Indian nationals, protecting policyholder interests.

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There are 2 Financial Sector Reforms practice MCQs available on Aspirant Academy, with detailed answers and explanations for each question.

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Yes, every Financial Sector Reforms question comes with the correct answer and a detailed explanation to help you understand the underlying concept.

How is Financial Sector Reforms relevant to the RAS/RPSC exam?

Financial Sector Reforms falls under the Indian Economy section of the RAS/RPSC syllabus. It is a frequently tested area and regular practice with these MCQs will strengthen your preparation.

Can I practice Financial Sector Reforms questions in Hindi?

Yes, Aspirant Academy offers bilingual support. You can practice Financial Sector Reforms MCQs in both English and Hindi, including questions, options, and explanations.

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Financial Sector Reforms MCQ — 2 Practice Questions with Answers

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