Under the RBI's Digital Lending Guidelines, 2022, what is a crucial principle regarding data collection by Lending Service Providers (LSPs) from borrowers?
A LSPs are permitted to collect all data available on the borrower's device for credit assessment.
B Data collection must be 'need-based' and with explicit prior consent of the borrower.
C Borrowers cannot revoke consent for data usage once granted.
D LSPs are not required to provide an audit trail of data collection.
Answer: B
The guidelines strictly state that data collection by LSPs must be 'need-based', with clear audit trails, and only with the explicit prior consent of the borrower. Borrowers must also have the option to revoke consent and delete data.
2.
As per RBI's Digital Lending Guidelines, 2022, what is a mandatory requirement for the disbursement and repayment of loans facilitated by digital lending apps?
A Loans must be disbursed directly into the borrower's bank account and repayments collected directly by the Regulated Entity (RE).
B Lending Service Providers (LSPs) can disburse loans from their own accounts and collect repayments.
C Loans can be disbursed to any third-party account specified by the borrower.
D Repayments can be collected in cash by agents of the LSP.
Answer: A
The guidelines mandate that all loan disbursements and repayments must be executed directly between the borrower's bank account and the Regulated Entity (RE) without any pass-through or pool account of the Lending Service Provider (LSP).
3.
The Reserve Bank of India (RBI) introduced comprehensive guidelines for digital lending primarily to address which of the following concerns?
A To promote faster credit growth in the economy.
B To regulate unregulated digital lending platforms and protect borrowers from unethical practices.
C To encourage foreign investment in the FinTech sector.
D To standardize interest rates across all digital lenders.
Answer: B
The RBI introduced digital lending guidelines in 2022 to mitigate concerns arising from the unregulated growth of digital lending, including predatory practices, data privacy issues, and unethical recovery methods, thereby protecting borrowers.
4.
Under the enhanced cybersecurity framework for banks by RBI, what is a mandatory requirement for reporting significant cybersecurity incidents?
A Reporting to CERT-In within 24 hours.
B Reporting to RBI within 6 hours of detection.
C Reporting to the bank's internal IT security team only.
D Reporting to the customer after resolution.
Answer: B
RBI's circular on 'Cyber Security Incident Reporting by Regulated Entities' mandates Regulated Entities to report all unusual and significant cyber incidents to RBI within 6 hours of detection.
5.
A key enhancement in RBI's cybersecurity framework for banks, as outlined in recent guidelines, emphasizes the critical role of which body in overseeing IT and cybersecurity risks?
A Internal Audit Department
B IT Department Head
C Board of Directors
D External Auditors
Answer: C
RBI's enhanced cybersecurity framework, particularly the MD-ITGRCA 2023, significantly strengthens the role and responsibilities of the Board of Directors and senior management in overseeing IT and cybersecurity risks.
6.
Which Master Direction issued by the Reserve Bank of India (RBI) provides a comprehensive framework for IT Governance, Risk, Controls, and Assurance Practices for all Regulated Entities, including banks, as of 2026?
A Master Direction on Cybersecurity Framework for Banks, 2016
B Master Direction on Digital Payment Security, 2020
C Master Direction on IT Governance, Risk, Controls and Assurance Practices, 2023
D Master Direction on Data Localisation Norms, 2018
Answer: C
The Master Direction on IT Governance, Risk, Controls and Assurance Practices, 2023, issued by RBI, consolidates and updates previous guidelines, providing a comprehensive framework for IT and cybersecurity for all Regulated Entities.
7.
Under the Pradhan Mantri MUDRA Yojana (PMMY), loans are provided by which of the following institutions?
A Only Public Sector Banks
B Only Regional Rural Banks (RRBs)
C Commercial Banks, RRBs, Small Finance Banks, MFIs, and NBFCs
D Only Cooperative Banks
Answer: C
MUDRA loans are disbursed by Commercial Banks, Regional Rural Banks (RRBs), Small Finance Banks (SFBs), Micro Finance Institutions (MFIs), and Non-Banking Financial Companies (NBFCs).
8.
The Pradhan Mantri MUDRA Yojana (PMMY) categorizes loans into three products based on the loan amount. Which of the following correctly lists these categories?
A Shishu, Kishore, Tarun
B Balak, Yuva, Vriddha
C Udyami, Vyapari, Karigar
D Laghu, Madhyam, Brihat
Answer: A
PMMY loans are categorized as 'Shishu' (loans up to βΉ50,000), 'Kishore' (loans from βΉ50,001 to βΉ5 lakh), and 'Tarun' (loans from βΉ5 lakh to βΉ10 lakh).
9.
What is the primary objective of the Pradhan Mantri MUDRA Yojana (PMMY)?
A Providing housing loans to the rural poor.
B Extending credit for non-corporate, non-farm small/micro enterprises.
C Offering agricultural subsidies to marginal farmers.
D Facilitating education loans for economically weaker sections.
Answer: B
The Pradhan Mantri MUDRA Yojana (PMMY) was launched to provide loans up to βΉ10 lakh to non-corporate, non-farm small/micro enterprises, thereby promoting entrepreneurship and employment.
10.
Which of the following community health workers plays a crucial role in connecting rural populations with healthcare services under the National Health Mission (NHM)?
A Anganwadi Workers (AWW)
B Accredited Social Health Activists (ASHA)
C Auxiliary Nurse Midwives (ANM)
D Village Health Guides (VHG)
Answer: B
Accredited Social Health Activists (ASHAs) are community health workers created under the National Rural Health Mission (now part of NHM) to act as a bridge between the community and the public health system, especially in rural areas.
