MCQs - 2026-05

The RBI has periodically revised the credit limits and sub-targets under PSL to ensure that adequate credit reaches various segments of MSMEs, often by introducing higher limits for specific categories.

The enhancement of PSL norms for MSMEs is aimed at boosting credit availability to this vital sector, which is crucial for economic growth and employment generation.

The framework emphasizes data privacy and mandates that DLAs must obtain explicit consent from borrowers for all data collection, clearly stating the purpose and usage of the data.

A key provision of the framework mandates that all loan disbursements and repayments must be made directly between the borrower's bank account and the Regulated Entity (RE)'s bank account, without any pass-through to the DLA or any other third party.

The framework aims to protect customers from predatory lending practices, ensure transparency, and promote responsible conduct by digital lenders.

The Board of Directors is expected to provide strategic oversight, approve cyber security policies, and ensure that adequate resources are allocated for cyber security initiatives.

RBI's framework emphasizes strengthening incident response and recovery mechanisms to effectively deal with cyberattacks and minimize their impact.

The primary objective of enhanced cyber security measures is to safeguard customer data and the integrity of financial systems against evolving cyber threats.

The program aims to bridge the gap between industry requirements and the current skill set of the workforce to enhance employability.

The initiative focuses on future-ready skills, including Artificial Intelligence, Cloud Computing, and Cybersecurity.