Which of the following is a key area where enhanced disclosures are mandated for NBFCs, particularly those in the Upper Layer, under the SBR framework?
A Detailed breakdown of employee salaries.
B Information on related party transactions and group exposures.
C Daily cash flow statements.
D Personal financial details of board members.
Answer: B
Under the SBR framework, especially for NBFCs in the Upper Layer, enhanced disclosures are mandated in areas such as capital adequacy, asset quality, liquidity risk management, and importantly, related party transactions and exposures to entities within the same group.
872.
What is the primary objective behind RBI mandating enhanced disclosure norms for NBFCs under the SBR framework?
A To reduce the number of NBFCs operating in India.
B To increase transparency and strengthen corporate governance.
C To encourage NBFCs to convert into banks.
D To limit the lending activities of NBFCs.
Answer: B
The primary objective of mandating enhanced disclosure norms under the SBR framework is to increase transparency in the operations of NBFCs, strengthen corporate governance, and enable better market discipline and public oversight.
873.
Under RBI's Scale Based Regulation (SBR) framework for NBFCs, which layer of NBFCs faces the most stringent disclosure requirements?
A NBFC-Base Layer (NBFC-BL)
B NBFC-Middle Layer (NBFC-ML)
C NBFC-Upper Layer (NBFC-UL)
D All layers have uniform disclosure requirements.
Answer: C
The Scale Based Regulation (SBR) framework categorizes NBFCs into different layers. NBFCs in the Upper Layer (NBFC-UL) are deemed systemically significant and are subject to the most stringent regulatory and disclosure requirements, including enhanced public disclosures.
874.
Which of the following is NOT a permissible resolution strategy under RBI's framework for stressed assets in MSMEs?
A Restructuring of existing loans.
B Change in ownership.
C Sale of the borrower's business to a third party.
D Automatic write-off of 100% of outstanding debt.
Answer: D
The RBI's framework allows for various resolution strategies like restructuring, change in ownership, or sale of assets. However, an automatic 100% write-off of outstanding debt is not a permissible resolution strategy; write-offs are typically a measure taken after other resolution attempts fail and are subject to specific policies.
875.
Under the RBI's framework for resolution of stressed assets, what is the maximum period allowed for implementing a resolution plan for an MSME, once invoked?
A 90 days
B 120 days
C 180 days
D 270 days
Answer: C
The RBI's Framework for Resolution of Stressed Assets (June 7, 2019) generally mandates that a resolution plan, once invoked, must be implemented within 180 days. Failure to implement within this period requires the account to be classified as an NPA.
876.
What is the maximum aggregate exposure limit for an MSME borrower to be eligible for resolution under the RBI's framework for stressed assets, without being classified as an NPA?
A ₹10 crore
B ₹25 crore
C ₹50 crore
D ₹100 crore
Answer: B
Under various RBI frameworks for resolution of stressed assets in MSMEs, including the one-time restructuring schemes, the aggregate exposure limit for an MSME borrower to be eligible for resolution without an asset classification downgrade has typically been ₹25 crore.
877.
Under the RBI's framework for digital lending, what is a mandatory requirement for Lending Service Providers (LSPs) regarding their IT systems?
A LSPs are required to conduct annual external IT audits.
B LSPs must use only open-source software.
C LSPs are exempt from IT audit requirements if they are small.
D LSPs must share their source code with the RBI.
Answer: A
The RBI's Regulatory Framework for Digital Lending mandates that Lending Service Providers (LSPs) engaged by Regulated Entities (REs) must conduct annual external IT audits and submit the reports to the respective REs.
878.
Which of the following is a primary objective of RBI's enhanced cybersecurity framework for digital lending platforms?
A To promote cross-border digital lending operations.
B To ensure data privacy and security of borrowers' information.
C To reduce the operational costs for digital lenders.
D To standardize interest rates across all digital lending products.
Answer: B
A core objective of RBI's digital lending framework, including its cybersecurity aspects, is to protect customer data, ensure privacy, and implement robust security measures to prevent data breaches and misuse.
879.
What is a key requirement for Regulated Entities (REs) and Lending Service Providers (LSPs) regarding data storage under RBI's cybersecurity framework for digital lending?
A All customer data must be stored exclusively on servers located within India.
B Data can be stored anywhere globally, provided it's encrypted.
C Only financial transaction data needs to be stored in India.
D Data storage location is at the discretion of the LSP.
Answer: A
RBI's Regulatory Framework for Digital Lending (August 2022) mandates that all data collected by Regulated Entities (REs) and Lending Service Providers (LSPs) must be stored in servers located within India.
880.
The National Skill Development Mission (NSDM) aims to enhance employability. When focusing on Green Jobs, what is a key outcome expected by 2026?
A Increased reliance on imported green technologies.
B A larger pool of skilled professionals ready for the green economy.
C Reduced investment in renewable energy research.
D A decline in the demand for sustainable products.
Answer: B
By expanding training for green jobs, NSDM aims to create a skilled workforce that can meet the demands of the growing green economy, thereby enhancing employability and supporting sustainable development.
