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      Question

      According to the June 2025 Financial Stability Report,

      what characterizes the current level of non-performing loans in Scheduled Commercial Banks (SCBs)?
      A At an all-time high Correct Answer Incorrect Answer
      B At a multi-decadal low Correct Answer Incorrect Answer
      C Equal to pre-COVID levels Correct Answer Incorrect Answer
      D Slightly above average Correct Answer Incorrect Answer
      E Constant since 2019 Correct Answer Incorrect Answer

      Solution

      The June 2025 Financial Stability Report (FSR) by the RBI highlights that Scheduled Commercial Banks (SCBs) are operating with multi-decadal low levels of non-performing loans (NPAs), reflecting strong asset quality and financial soundness in the banking sector.

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