Question 2 - Which one of the following best describes the concept of Human-In-The-Loop (HITL)?

A. AI systems operate independently without human involvement
B. Humans design AI systems but do not interfere in decisions
C. AI decisions are reviewed only after implementation
D. AI replaces human judgment in financial decisions
E. AI assists decision-making, but final authority rests with humans

Answer 2 – Option E
Explanation: HITL ensures that while AI processes large data and provides insights, the final decision-making authority remains with human management, maintaining accountability and control.

Question 3 - What is meant by Responsible AI in the context of financial regulation?

A. Unrestricted use of AI to maximize efficiency
B. AI systems replacing regulatory oversight
C. Use of AI without human intervention
D. Use of AI within ethical and regulatory boundaries
E. AI systems controlled only by private firms

Answer 3 – Option D
Explanation: Responsible AI refers to the use of AI in a manner that ensures fairness, transparency, accountability, and regulatory compliance, without compromising financial stability.

Question 4 - A bank rejects a loan application using an AI system but fails to explain the reason behind the rejection to the customer. Which of the following risks is best illustrated here?

A. Data Misuse
B. Algorithmic Bias
C. Cyber Threat
D. Black Box Problem
E. Concentration Risk

Answer 4 – Option D
Explanation: The inability of the AI system to explain its decision reflects the “black box” problem, where outputs are generated without transparency or explainability.

Question 5 - A leading bank uses an AI-based system to assess borrower creditworthiness and approve loans. Over time, it is observed that the system is producing incorrect risk assessments due to flawed design assumptions, leading to poor lending decisions and rising defaults.

Which of the following risks is best illustrated in the above case?

A. Model Risk
B. Data Misuse
C. Algorithmic Bias
D. Cyber Threat
E. Concentration Risk

Answer – Option A
Explanation: Model risk arises when decisions are based on incorrect or poorly designed analytical systems. Here, flawed assumptions in the AI system led to inaccurate credit assessments, resulting in adverse financial outcomes.

✨ Happy Akshaya Tritiya to all of you! ✨

May this auspicious day bring prosperity, growth, and success in your journey ahead.

Keep learning, keep progressing, your efforts will surely compound! 💛

Devanshu and Jalaj
Team Chapterss

Good News 🙌

Dear Students,

Our discussions regarding the FREE Current Affairs classes on YouTube are now complete.

📅 Tomorrow at 5 PM, we will be releasing the detailed schedule of these classes.

Get ready for comprehensive coverage of Current Affairs from January to June.

🗓️ We aim to complete all the classes by 7th June.

Along the way, we have planned:

* Multiple MCQs for practise
* Sectional Tests on Current Affairs
* Revision Sessions

Stay tuned and get ready to make the most of this! 🔥

📢 Dear Future Officers,

Today’s Current Affairs Quiz (9th April) has been uploaded on the portal.

🧠 The quiz includes 25 questions covering:
• PM Mudra Yojana
• ONDC
• RBI Guideline on Cross Border Inward Payments
• And other important news from today’s Current Affairs chapter

If you are ready to improve, you can access the full quizzes through the following ways:

Click here to attempt quiz in Current Affairs Chapter April 2026: Rs 51

or

Click here to attempt quiz in Current Affairs Package: Rs 100/month for entire year (Recommended ⭐)

-- Team Chapterss

Note: 1 Question is in image. Lets see who will be able to answer.

Message of Mentor (MoM)
Topic: The Test

The coming week is different.

Not because the syllabus changes. But because you must change.

The next 40–45 days are not normal preparation days.
They are pressure days.

You will face distractions.
You will feel tired without reason.
Some days, nothing will go as planned.
Some days, you will question yourself.

That is the design of this phase.

Phase 1 of RBI Grade B Phase 1 is not about comfort.
It is about endurance.

There will be speed breakers.
There will be rough patches.
There will be moments where quitting feels easier than continuing.

But understand this clearly:

Everyone faces this.
Very few push through it.

That is why selection is limited.

Today, sleep well.
Recover. Reset.

Because from tomorrow,
you don’t need motivation, you need discipline. Energy will drop.
Mood will fluctuate. But your effort should not.

This path is not easy.
It was never meant to be.

Only those who accept the grind,
respect the process, and show up daily, move ahead.

And remember this:

You are not competing for the crowd.

You are competing for the few who survive.

Stay in that group.

Jalaj and Devanshu
Team Chapterss
With you, always!

🌄 Good Morning, Future Officers!

Time for today’s Positive Manifestation ✨

Say to yourself:

Great things are on their way to me.

मेरे जीवन में अच्छा समय आने वाला है।

Repeat this 5 times with belief.
Stay focused. Stay consistent. Stay strong.

Dear Future Officers,

The Daily Current Affairs Chapter of 10th April has been uploaded on the portal.

With the RBI Grade B 2026 notification expected on 28th April, current affairs is no longer optional.
It is non-negotiable.

Have you covered RBI’s “Utkarsh 2029” yet?
-- If not, don’t skip this. It is a high-probability exam topic.

Read it in today’s Daily Current Affairs Chapter for a clear, comprehensive understanding.

We recommend all of you to visit the portal, go through the document, and stay consistent with your preparation, just as you have been doing over the last six months.

👉 Click here to access the document in April 2026 Current Affairs Chapter. (Price: Rs 51)

👉 Click here to access the document in Current Affairs Package. (Rs 100/Month for entire year: Recommended)

Start today. Stay consistent. No excuses.

-- Team Chapterss

📊 Just Observe This Carefully

In 2025, the number of frauds reported touched 2.8 million And the value of frauds reached a shocking ₹22,931,00,00,000

Now pause for a second.

From just 0.26 million cases in 2021 to 2.8 million in 2025. From ₹551 crore to ₹22,931 crore

This is not growth.
This is a scam explosion.

🤔 Now the real question is:

If frauds are rising at this pace, what is RBI doing to control this?

In today’s editorial coverage, we’ve broken this down in a very simple and exam-focused way:

1. Why RBI is planning a 1-hour delay in payments
2. What is “shadow mode” in bank accounts
3. How a Kill Switch can save your money
4. What is Mule Account?
5. What is whitelisting

👉 If you haven’t read it yet, you’re missing a very important exam topic

Posting the coverage in next 10 minutes.

Team Chapterss

📌 Read today’s editorial.
This is very important.

You will understand how policymakers actually think and act.

Don’t skip this.

Want more?
Check our - Current Affairs Package
Just ₹100/month (billed yearly)
Link - Click Here

Once your reading is done. Answer the following questions 👇

Question 1 - As per RBI data, digital transactions above ₹10,000 account for ____% of fraud cases by volume and ____% by value.

A. 35%, 90.5%
B. 45%, 98.5%
C. 50%, 95.5%
D. 40%, 97.5%
E. 55%, 99.5%

Answer – Option B
Explanation: As per RBI data, transactions above ₹10,000 constitute 45% of fraud cases by volume and 98.5% by value, showing that higher-value transactions dominate fraud impact

Question 2 - With reference to the RBI’s proposed framework on digital payments, consider the following statements:

1. Digital transactions above ₹10,000 will be instantly credited but flagged for review.
2. During the 2-hour lag, funds are debited but not credited to the beneficiary.
3. The delay mechanism aims to provide a window to cancel fraudulent transactions.

Which of the above statements is/are correct?

A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2 and 3
E. 3 only

Answer – Option E
Explanation: Funds are not credited instantly (1 is incorrect). During the lag, money is debited but held, and the window allows cancellation and the lag is of 1 hour (2 is incorrect), therefore only statement 3 is correct.

Question 3 - A fraudster scams multiple individuals and directs them to transfer money into Account X. The owner of Account X then quickly transfers funds to several other accounts to avoid detection.

Which of the following best describes Account X?

A. Escrow Account
B. Suspicious Account
C. Mule Account
D. Shadow Account
E. Proxy Account

Answer – Option C
Explanation: A mule account is used as an intermediary to receive and transfer illicit funds, helping fraudsters hide their identity.

Question 4 - Ram frequently transfers money to Shyam and adds him to the bank’s “trusted list.” As a result, all future transactions from Ram to Shyam are processed instantly without any delay.

Which of the following mechanisms is being illustrated?

A. Shadow Mode
B. Kill Switch
C. Cooling Period
D. Whitelisting
E. Secondary Authentication

Answer – Option D
Explanation: Whitelisting allows users to mark beneficiaries (like Shyam) as trusted, ensuring transactions are processed instantly without the 1-hour delay.

Question 5 - Under RBI’s proposed framework, standard KYC accounts will have an annual inflow limit of __.

A. ₹10 lakh
B. ₹15 lakh
C. ₹20 lakh
D. ₹25 lakh
E. ₹50 lakh

Answer – Option D
Explanation: RBI proposes a ₹25 lakh annual inflow cap for standard KYC accounts. Any amount beyond this is restricted under a controlled mechanism (shadow mode) until verification, to prevent misuse like mule accounts.

The Reserve Bank of India proposes a special protection framework for vulnerable users (senior citizens above 70 and differently-abled individuals).

For transactions above ₹50,000, a “Trusted Person” can be added to provide a second layer of authentication, reducing the risk of fraud.

Team Chapterss