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MCQs 2026

121.
This initiative is crucial for the continued digitalization of financial services in India because it:
A Slows down technological adoption.
B Provides a standardized and secure approach to identity verification.
C Increases the complexity of digital transactions.
D Reduces the need for online services.
122.
What is a crucial element for secure and verifiable identity management promoted by the framework?
A Manual record-keeping.
B Decentralized digital identity solutions and blockchain technology.
C Reliance on social media verification.
D Centralized databases with weak encryption.
123.
The framework outlines principles and standards for the adoption of digital identity solutions by:
A All citizens of India.
B Regulated entities (REs) in the financial sector.
C Technology companies only.
D Non-financial businesses.
124.
Which aspects are to be ensured while improving customer experience?
A Data insecurity and privacy breaches.
B Data privacy and security.
C Reduced transparency.
D Increased operational costs.
125.
What is a key objective related to customer onboarding?
A To make it more complex and time-consuming.
B To streamline it and reduce operational costs.
C To eliminate customer onboarding altogether.
D To increase the reliance on paper-based processes.
126.
What kind of digital identity solutions does the framework promote?
A Centralized and easily hackable solutions.
B Decentralized digital identity solutions and blockchain technology.
C Solutions requiring extensive physical verification.
D Solutions that store all data in plain text.
127.
What is emphasized for preventing identity fraud?
A Weak authentication protocols.
B Strong authentication protocols, including multi-factor authentication.
C Manual verification only.
D Reliance on customer self-declaration.
128.
What is recognized as a valid proof for KYC processes under the new framework?
A Only internal company IDs.
B Aadhaar and other government-issued digital identities.
C Social media profiles only.
D Utility bills only.
129.
When does the RBI's framework for digital identity in financial services become effective?
A August 1, 2026
B September 1, 2026
C October 1, 2026
D November 1, 2026
130.
What is the primary goal of the RBI's framework for digital identity in financial services?
A To increase the use of physical documents.
B To enhance security, efficiency, and customer convenience.
C To restrict access to financial services.
D To increase the cost of customer onboarding.