MCQs - 2026-04

The guidelines stress the importance of respecting borrower privacy and restrict contact to reasonable hours and locations, avoiding public places.

The responsibility lies with the Regulated Entities (REs), such as banks and NBFCs, to ensure that their appointed recovery agents adhere to the code of conduct.

The revised guidelines explicitly prohibit the use of abusive language, threats, or any form of coercion by recovery agents.

The RBI has revised the guidelines to tackle the rising number of customer complaints related to the misconduct and unfair practices of loan recovery agents.

The RBI has strengthened regulations in response to the rapid expansion of digital lending and associated concerns about predatory practices.

The regulations apply to all entities, including banks and NBFCs, that are engaged in digital lending activities.

The RBI's directives highlight the importance of robust data privacy and security, requiring platforms to obtain explicit borrower consent for any data usage.

The guidelines explicitly require digital lending platforms to provide borrowers with clear and upfront information about all associated charges and fees before loan disbursement.

The RBI's guidelines are primarily focused on creating a safer and more transparent digital lending environment, thereby protecting borrowers from potential exploitation.

The scheme is specifically designed to provide comprehensive support to women entrepreneurs.