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JAIIB IE&IFS Unit 28 — Reforms and Developments in the Banking Sector: Free MCQs with Explanations

By Swarnakshi Jha (ex-banker) · Updated 20 September 2026 · Paper 1 of the November 2026 cycle (1 November 2026)

This page is a free slice of our JAIIB IE&IFS question bank for Unit 28 — Reforms and Developments in the Banking Sector (Module C — Indian Financial Architecture). The Mock Centre holds 56 questions on this unit alone, every one with a why-right / why-wrong explanation; below are the facts examiners keep returning to, five of those questions to try, and the traps that cost marks.

IE&IFS · Module C56 MCQs in the Mock Centre5 free belowPaper on 1 November 2026

Key facts examiners test from this unit

  1. Infrastructure: long gestation + economies of scale + externalities; natural monopoly → regulation (TRAI for telecom); financing — large/long (5–40 yrs)/fixed-low returns; seven channels (not direct retail MFs).
  2. DFIs: IFCI 1948 first; SIDBI-1990, IRFC-rail, REC-power; old DFIs → universal banks; NaBFID = the return to DFI-based infrastructure lending (ALM logic).
  3. NaBFID: Act assent 28-3-2021; ₹1-lakh-crore authorised capital; 100%→≥26% GoI; ₹5,000-crore grant; Chairperson K.V. Kamath; borrows via loans/bonds/debentures (INR + FX).

5 free practice questions — tap an option

Five basic questions from this unit. Answers lock on the first tap, exactly as in the exam, and a short explanation opens underneath. The Mock Centre adds the moderate and tough questions, why every other option is wrong, the concept capsule and the exam tip — with your score and revision dates tracked.

Question 1 of 5
NOT in the infrastructure sector:
Why (a): TEXTILE MILLS are NOT infrastructure — mills produce goods; waterworks, waterways and canals are the shared networks the economy runs on.
Question 2 of 5
Infrastructure financing characteristics:
Why (d): Infrastructure financing carries ALL three characteristics: LARGER amounts, LONGER maturities, and FIXED-BUT-LOW real returns — big, long, steady.
Question 3 of 5
Telecom's regulator:
Why (b): Telecom's regulator is TRAI — the Telecom Regulatory Authority of India, the sector-regulator model in action.
Question 4 of 5
DFIs are also called:
Why (b): DFIs are also called DEVELOPMENT BANKS — two names for the same long-term project financier.
Question 5 of 5
The Bad-Bank proposal came from the:
Why (b): The Bad-Bank proposal came from the INDIAN BANKS' ASSOCIATION — announced in Budget 2021-22.
0 of 5 answered.

Traps in this unit

Confusable AConfusable BThe difference
NARCLIDRCLAcquires (PSB 51%) vs manages (PSB 49%)
28-3-20217-7-2021NaBFID Act vs NARCL incorporation
Practise all 56 questions on Unit 28. The free demo opens a slice of every subject with the same explanations; the IE&IFS Online-only pass unlocks all 3,032 IE&IFS questions, the full and module mocks, Smart Revision and the Readiness Score for one year (₹1,299). Not sure where you stand? Take the free 10-question test first.
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Independent study aid — not affiliated with, endorsed by, or sponsored by the Indian Institute of Banking & Finance (IIBF). Exam pattern, dates, fees and passing criteria are set by IIBF — always confirm the current rules at iibf.org.in. Regulatory figures verified as of September 2026; verify from official sources before relying on them in practice.