The RBI's framework for cybersecurity in digital payments includes strict guidelines for reporting cyber incidents. What is the stipulated timeframe within which regulated entities are generally required to report significant cyber incidents to the RBI?
A Within 7 working days of detection.
B Within 24 hours of detection.
C Within 48 hours of detection.
D At the end of the financial quarter.
Answer: C
As per RBI's various guidelines on cybersecurity, including those for banks and payment system operators, significant cyber incidents are generally required to be reported to the RBI within 48 hours of detection. This prompt reporting enables the RBI to assess the systemic impact and take necessary actions.
2.
In its guidelines for payment system operators and participants, the RBI frequently mandates the implementation of Multi-Factor Authentication (MFA) for digital payment transactions. What is the main purpose of requiring MFA?
A To simplify the payment process for users.
B To reduce the transaction processing time.
C To add an extra layer of security beyond a single password, making unauthorized access significantly harder.
D To enable offline payment capabilities.
Answer: C
Multi-Factor Authentication (MFA) is a security system that requires more than one method of authentication from independent categories of credentials to verify the user's identity for a login or other transaction. Its main purpose is to significantly enhance security by making it much harder for unauthorized individuals to gain access, even if one factor (like a password) is compromised.
3.
The Reserve Bank of India (RBI) has consistently emphasized the need for robust cybersecurity measures in the digital payments ecosystem. Which of the following is a primary reason for RBI's strong push for enhanced cybersecurity in this domain?
A To reduce the operational costs for payment service providers.
B To promote the use of cash transactions over digital payments.
C To protect customer data, prevent financial fraud, and maintain public confidence in digital transactions.
D To limit the growth of new payment technologies.
Answer: C
RBI's strong emphasis on enhanced cybersecurity in digital payments is primarily aimed at safeguarding sensitive customer data, preventing various forms of financial fraud, and thereby sustaining and building public trust and confidence in the rapidly evolving digital payment ecosystem.
4.
The Reserve Bank of India (RBI) mandates all Non-Banking Financial Companies (NBFCs) to formulate and implement a Fair Practices Code (FPC). Which of the following is NOT a primary objective of the FPC for NBFCs?
A To ensure transparency in lending operations.
B To protect the interests of the borrowers.
C To standardize interest rates across all NBFCs.
D To promote good corporate governance and ethical conduct.
Answer: C
The Fair Practices Code (FPC) for NBFCs aims to ensure transparency, protect borrower interests, and promote ethical conduct in lending. It does NOT aim to standardize interest rates across all NBFCs, as interest rates are typically determined by market forces, risk assessment, and the NBFC's own cost of funds, subject to regulatory guidelines on transparency and reasonableness.
5.
As part of its efforts to strengthen the regulatory framework for Non-Banking Financial Companies (NBFCs), the RBI has often emphasized the harmonization of asset classification and provisioning norms. What is the primary objective behind aligning these norms for NBFCs with those applicable to commercial banks?
A To reduce the operational costs for NBFCs.
B To encourage NBFCs to diversify their lending portfolio.
C To mitigate regulatory arbitrage and enhance financial stability across the financial system.
D To increase the lending capacity of NBFCs.
Answer: C
Harmonizing asset classification and provisioning norms for NBFCs with those of commercial banks is a key step taken by the RBI to reduce regulatory arbitrage opportunities, ensure a level playing field, and enhance the overall financial stability of the system by ensuring consistent risk recognition and provisioning across similar financial activities.
6.
Which of the following frameworks was introduced by the Reserve Bank of India (RBI) to categorize Non-Banking Financial Companies (NBFCs) into different layers based on their size, activity, and perceived risk, thereby aligning regulatory intensity with their systemic significance?
A Prompt Corrective Action (PCA) Framework
B Scale-Based Regulation (SBR) Framework
C Basel III Framework
D Ind AS Framework
Answer: B
The Scale-Based Regulation (SBR) framework for NBFCs was introduced by the RBI to create a graded regulatory structure, categorizing NBFCs into four layers: Base Layer (NBFC-BL), Middle Layer (NBFC-ML), Upper Layer (NBFC-UL), and Top Layer (NBFC-TL). This framework aims to align regulatory requirements with the systemic importance and risk profile of NBFCs.
7.
As of 2026, what is a significant benefit offered to households under the expanded PM-Surya Ghar Muft Bijli Yojana?
A Subsidized purchase of electric vehicles.
B Free installation of solar panels and a subsidy on electricity bills.
C Government-funded maintenance of solar systems for 10 years.
D Direct cash transfer for energy conservation.
Answer: B
The scheme provides subsidies for the installation of rooftop solar systems and aims to reduce electricity bills for households, effectively offering 'free electricity' after the initial investment and subsidies.
8.
What is the primary technology promoted under the PM-Surya Ghar Muft Bijli Yojana for household electricity generation?
A Wind Turbines
B Solar Rooftop Systems
C Biomass Gasifiers
D Geothermal Energy
Answer: B
The scheme focuses on promoting the installation of rooftop solar systems on residential buildings to generate electricity.
9.
The PM-Surya Ghar Muft Bijli Yojana, expanded in 2024, aims to provide free electricity to how many households?
A 10 million
B 20 million
C 30 million
D 40 million
Answer: C
The expanded PM-Surya Ghar Muft Bijli Yojana aims to provide free electricity to 30 million households by installing rooftop solar systems.
10.
As of 2026, which of the following is a key feature of the PM-Vidyalaxmi Portal?
A It exclusively lists government-funded scholarships.
B It allows students to compare interest rates and terms of educational loans from multiple banks.
C It provides direct job placements after loan disbursement.
D It is only accessible to students pursuing STEM fields.
Answer: B
A key feature of the PM-Vidyalaxmi Portal is its ability to allow students to compare educational loan schemes, including interest rates and repayment terms, offered by various financial institutions.
