MCQs - 2026-08

NEEDS_REVIEW

NEEDS_REVIEW

The RBI, in its June 2023 circular, permitted FLDG arrangements between Regulated Entities and Lending Service Providers, subject to a maximum cap of 5% of the loan portfolio, to balance innovation with risk management.

The Key Fact Statement (KFS) is a mandatory document under RBI's digital lending guidelines, providing borrowers with clear and concise information about the loan terms, including interest rates, fees, and other charges, before they commit to the loan.

The RBI's digital lending guidelines mandate that all loan disbursals and repayments must be executed directly between the borrower and the Regulated Entity (RE) to ensure transparency and accountability.

The primary objective of SBR is to enhance financial stability by aligning the regulatory framework with the systemic importance and risk profile of NBFCs, thereby mitigating potential systemic risks.

The Upper Layer (NBFC-UL) comprises NBFCs identified as requiring enhanced regulation, similar to banks, due to their significant systemic importance and potential for systemic risk.

The SBR framework categorizes NBFCs into four layers: Base Layer, Middle Layer, Upper Layer, and Top Layer, with increasing regulatory intensity based on their size, activity, and perceived risk.

Green jobs encompass roles in renewable energy, energy efficiency, conservation, and other environmentally sustainable sectors.

The scheme focuses on developing skills among the youth that are relevant to the growing green economy, thereby enhancing their job prospects.