The Fintech sector has largely welcomed the RBI's strengthened digital lending framework introduced in 2026. What is a primary reason for this positive reception?
A The framework imposes significant new licensing requirements that are easy to meet.
B It provides a clearer regulatory pathway and aims to curb predatory lending practices, fostering trust.
C The framework allows fintech companies to operate without any oversight.
D It mandates that all fintech lending must be done offline.
Answer: B
Fintech companies generally welcome the strengthened framework because it clarifies regulatory expectations, aims to create a more level playing field by addressing unfair practices, and ultimately builds greater trust among consumers and investors in the digital lending ecosystem.
22.
Which of the following is a new requirement mandated by the RBI's strengthened digital lending framework in 2026 concerning loan disbursal and repayment?
A All loan disbursals must be made in cash.
B Loan disbursal and repayment must be executed only through bank accounts of the Regulated Entity (RE) and not through any third-party pool account.
C Borrowers must repay loans using only cryptocurrency.
D Interest rates on digital loans can be determined solely by the lending platform.
Answer: B
A significant change in the 2026 framework is the mandate that all loan disbursals and repayments must be routed exclusively through the bank accounts of the Regulated Entity (RE) and not through any third-party pool accounts, enhancing transparency and reducing risks.
23.
As per the enhanced digital lending framework introduced by the RBI in 2026, which entity is primarily responsible for ensuring that all outsourced activities are performed by the Regulated Entity (RE)?
A The borrower
B The technology service provider
C The Regulated Entity (RE)
D The Ministry of Finance
Answer: C
The RBI's framework clearly places the responsibility on the Regulated Entity (RE) to ensure that all outsourced activities, including those related to digital lending, are performed by the RE itself or by entities acting on its behalf under its direct supervision.
24.
In 2026, the Reserve Bank of India (RBI) announced enhanced digital lending norms. Which of the following is a key objective of these revised norms?
A To restrict all forms of digital lending to only scheduled commercial banks.
B To ensure greater transparency and protect borrowers' interests.
C To mandate a fixed interest rate for all digital loans across India.
D To reduce the overall number of digital lending platforms operating in India.
Answer: B
The RBI's enhanced digital lending norms in 2026 primarily aim to bring more transparency into the digital lending ecosystem and safeguard the interests of borrowers by addressing concerns related to unfair practices.
25.
A primary objective of the proposed India-United Kingdom Free Trade Agreement (FTA) is to achieve what for bilateral trade?
A Introduce new non-tariff barriers
B Eliminate or reduce tariffs on a wide range of goods and services
C Restrict movement of skilled professionals
D Promote a single currency union
Answer: B
The fundamental goal of any Free Trade Agreement, including the one between India and the United Kingdom, is to liberalize trade by eliminating or significantly reducing tariffs and other non-tariff barriers on a broad spectrum of goods and services. This aims to make trade cheaper, faster, and more efficient, boosting economic growth for both parties.
26.
Which of the following sectors is a primary focus area for liberalization and increased cooperation under the ongoing India-United Kingdom Free Trade Agreement (FTA) negotiations?
A Space exploration and asteroid mining
B Financial services and digital trade
C Deep-sea oil drilling technology
D Antarctic research infrastructure
Answer: B
The India-UK FTA negotiations cover a wide range of sectors, with a significant emphasis on services, including financial services, and digital trade. Both countries aim to reduce barriers and facilitate greater cooperation in these high-growth areas, alongside goods, investment, and intellectual property.
27.
As of early 2026, India is in advanced stages of negotiating a Free Trade Agreement (FTA) with which major European nation, aiming to significantly boost bilateral trade and investment?
A Germany
B France
C United Kingdom
D Italy
Answer: C
India and the United Kingdom have been engaged in extensive negotiations for a comprehensive Free Trade Agreement (FTA) since January 2022. As of early 2026, these negotiations are expected to be in advanced stages or potentially concluded, aiming to significantly enhance trade and investment ties between the two nations.
28.
In the context of the UN General Assembly's role in global climate governance, what mechanism is primarily used by member states to communicate their national climate action plans and targets under the Paris Agreement?
A Millennium Development Goals (MDGs)
B Sustainable Development Goals (SDGs)
C Nationally Determined Contributions (NDCs)
D Kyoto Protocol Commitments
Answer: C
Nationally Determined Contributions (NDCs) are at the heart of the Paris Agreement and represent each country's efforts to reduce national emissions and adapt to the impacts of climate change. Member states regularly submit and update their NDCs, which are central to discussions on climate ambition and progress within UN forums, including the General Assembly.
29.
A significant focus of recent UN climate discussions, including those potentially addressed by the UN General Assembly in 2026, revolves around the operationalization and funding of the Loss and Damage Fund. Which COP formally agreed to operationalize this fund?
A COP26 (Glasgow)
B COP27 (Sharm El Sheikh)
C COP28 (Dubai)
D COP29 (Baku)
Answer: C
The Loss and Damage Fund was formally operationalized at COP28 in Dubai in December 2023, with initial pledges made by several countries. This fund aims to provide financial assistance to developing countries most vulnerable to the adverse effects of climate change, and its implementation and funding will remain a key topic in UN climate discussions, including at the UN General Assembly, in 2026.
30.
What is a key outcome of the Global Stocktake, concluded at COP28, that is expected to significantly influence UN General Assembly discussions on climate action in 2026?
A Mandating a global carbon tax
B Informing the next round of Nationally Determined Contributions (NDCs)
C Establishing a new international climate court
D Dissolving the Paris Agreement
Answer: B
The Global Stocktake, concluded at COP28 in December 2023, is a critical process under the Paris Agreement designed to assess the world's collective progress towards achieving its climate goals. Its findings are intended to inform countries in preparing their next round of Nationally Determined Contributions (NDCs) by 2025, making it a central point for UN General Assembly discussions on climate action in 2026.
