LIC AAO Mains Current Affairs Questions of Banking and Finance

The LIC AAO prelims result has been announced on its official website total of 7760 candidates have been selected to attend the mains online examination. In the LIC mains Exam, you need to make proper strategies and plans to score the max to max number for the interview or document verification. 

Today, we are providing the most significant current affairs questions related to Banking, Insurance and Finance. As per the previous year’s question papers and topics, most of the questions were added in the paper from finance topics. 




LIC AAO Mains Current Affairs Questions

In the LIC AAO Exam only finance and banking-related questions are not asked, but also static topics play a vital role. Only those candidates who crack this those have a good command of both current affairs as well as static topics. 

Question: Which state government launched the ‘Krishi Samruddhi’ scheme with a total budget of Rs 25,000 crore over five years to empower farmers and promote climate-resilient agriculture?
A) Uttar Pradesh
B) Karnataka
C) Maharashtra
D) Tamil Nadu
Answer: C) Maharashtra

Question: What retail inflation forecast for FY26 did India Ratings and Research set in July 2025, following a CPI drop in June 2025?
A) 4.3%
B) 3.8%
C) 3.0%
D) 2.5%
Answer: C) 3.0%

Question: When is Income Tax Day (Aaykar Diwas) observed in India?
A) 1 July
B) 31 March
C) 24 July
D) 15 August
Answer: C) 24 July

Question: Which policy did Union Minister Amit Shah launch in July 2025 to strengthen India’s cooperative sector for the next two decades?
A) National Cooperative Policy – 2025
B) National Banking Policy – 2025
C) Cooperative Societies Regulation – 2025
D) Cooperative Finance Promotion Policy – 2025
Answer: A) National Cooperative Policy – 2025

Question: Which organisations signed an agreement to revolutionise inward remittances to India using UPI and postal networks?
A) State Bank of India and RBI
B) Department of Posts and NPCI International Payments Limited
C) NABARD and Indian Postal Services
D) Ministry of Finance and Paytm
Answer: B) Department of Posts and NPCI International Payments Limited

Question: The Comprehensive Economic and Trade Agreement (CETA) signed in July 2025 between India and the UK aims to:
A) Reduce banking frauds
B) Strengthen bilateral trade and double trade value by 2030
C) Promote agricultural exports only
D) Set up joint stock exchanges
Answer: B) Strengthen bilateral trade and double trade value by 2030

Question: Which Non-Banking Financial Company (NBFC) had their Corrective Action Plan (CAP) withdrawn by RBI in July 2025 after meeting prudential norms?
A) Tata Capital
B) Reliance Finance
C) Religare Finvest Limited
D) Bajaj Finance
Answer: C) Religare Finvest Limited

Question: Why did RBI cancel the license of The Karwar Urban Co-operative Bank in July 2025?
A) High non-performing assets
B) Inadequate capital and earning prospects
C) Fraudulent transactions detected
D) Technological non-compliance
Answer: B) Inadequate capital and earning prospects




Question: According to RBI’s banking regulations, what is the maximum deposit insurance amount a depositor can claim after a bank’s liquidation?
A) Rs.2 lakh
B) Rs.3 lakh
C) Rs.4 lakh
D) Rs.5 lakh
Answer: D) Rs 5 lakh

Question: Which bank became the first in India to launch biometric authentication for e-commerce card transactions in July 2025?
A) ICICI Bank
B) HDFC Bank
C) Federal Bank
D) Axis Bank
Answer: C) Federal Bank

LIC AAO Mains Current Affairs Questions

Question: The biometric authentication for e-commerce transactions launched by Federal Bank replaces what method?
A) Email verification
B) SMS verification
C) One-Time Password (OTP) based two-factor authentication
D) PIN-based authentication
Answer: C) One-Time Password (OTP) based two-factor authentication

Question: Which company received the Reserve Bank of India’s In-Principle Authorisation to operate as an online Payment Aggregator for Cross-Border (PA-CB) transactions in July 2025?
A) Xflow
B) Adyen India Technology Services
C) Cashfree Payments
D) Amazon Pay
Correct Answer: A) Xflow

Question: What innovative AI-powered forex insight tool was launched by Xflow to help businesses manage currency conversions?
A) FX Wizard
B) FX AI Analyst
C) Forex Genie
D) Smart Forex
Correct Answer: B) FX AI Analyst

Question: After receiving the RBI’s PA-CB license, how many businesses does Xflow aim to serve by the end of 2025?
A) 10,000
B) 20,000
C) 25,000
D) 30,000
Correct Answer: D) 30,000

Question: Which of the following has NOT received RBI approval to operate as a Payment Aggregator for Cross-Border transactions as of July 2025?
A) Adyen India Technology Services
B) Cashfree Payments
C) Pay10 Services
D) Razorpay
Correct Answer: D) Razorpay

Question: In the Climate Change Performance Index (CCPI) 2025, what was India’s global rank?
A) 1st
B) 7th
C) 10th
D) 15th
Answer: C) 10th

Question: For which term was India elected to the United Nations Economic and Social Council (ECOSOC) in June 2025?
A) 2024-2026
B) 2025-2027
C) 2026-2028
D) 2027-2029
Answer: C) 2026-2028

Question: What is the projected GDP growth rate for India in FY 2025-26 as per RBI’s 2nd Bi-monthly Monetary Policy?
a) 7.0%
b) 6.8%
c) 6.5%
d) 5.9%
Answer: c) 6.5%

Question: As of May 30, 2025, what was the size of India’s foreign exchange reserves?
a) USD 600.4 billion
b) USD 691.5 billion
c) USD 570.2 billion
d) USD 721.6 billion
Answer: b) USD 691.5 billion

Question: What is the revised Loan-to-Value (LTV) cap for small-ticket gold loans under Rs. 2.5 lakh announced by RBI?
a) 65%
b) 75%
c) 85%
d) 90%
Answer: c) 85%

Question: The RBI reduced the qualifying asset threshold for NBFC-MFIs in June 2025 to what percentage of total assets?
a) 50%
b) 60%
c) 65%
d) 75%
Answer: b) 60%

Question: By approximately what percentage did India’s gross FDI inflows rise to USD 81 billion in 2024-25 compared to last year?
a) 7%
b) 10%
c) 14%
d) 20%
Answer: c) 14%

Question: What is the medium-term CPI inflation target set by RBI?
a) 2% ± 2%
b) 3% ± 2%
c) 4% ± 2%
d) 5% ± 2%
Answer: c) 4% ± 2%

LIC AAO Mains Current Affairs Questions

Question: Which Indian company became the first to issue a listed ESG bond under SEBI’s new framework in June 2025?
a) Tata Steel
b) Larsen & Toubro (L&T)
c) Reliance Industries
d) Adani Group
Answer: b) Larsen & Toubro (L&T)

Question: What is the value of the ESG bond issuance deal announced by L&T in June 2025?
a) Rs. 1,000 crore
b) Rs. 750 crore
c) Rs. 500 crore
d) Rs. 250 crore
Answer: c) Rs. 500 crore

Question: Who is the sole lead arranger in L&T’s ESG bond transaction?
a) Axis Bank
b) State Bank of India
c) HSBC
d) HDFC Bank
Answer: c) HSBC

Question: Which platform was launched to facilitate investment in India’s traditional medicine sector in May 2025?
a) Digital Health Saarthi
b) Ayush Nivesh Saarthi
c) Ayurveda Investment Portal
d) Wellness India Gateway
Answer: b) Ayush Nivesh Saarthi

Question: The NSE Sustainability launched which new rating service for listed companies in June 2025?
a) Credit risk score
b) ESG ratings
c) Liquidity index
d) Corporate governance index
Answer: b) ESG ratings

Question: In 2025, Flipkart received permission from RBI to operate as which of the following?
a) Payments Bank
b) Microfinance Institution
c) Non-Banking Finance Company (NBFC)
d) Full-fledged Commercial Bank
Answer: c) Non-Banking Finance Company (NBFC)

Question: As per RBI’s 2nd Bi-monthly policy, which bank group saw the steepest decline in credit growth by March 2025?
a) Public Sector Banks
b) Private Banks
c) Foreign Banks
d) Small Finance Banks
Answer: b) Private Banks

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