Banking & Finance MCQs - RBI, MPC, Cybersecurity

1.

To enhance the security of online banking transactions and protect customer accounts, what measure do banks commonly implement that requires users to provide two or more verification factors?

A Multi-Factor Authentication (MFA)

B Single Sign-On (SSO)

C Virtual Private Network (VPN)

D Biometric Data Encryption (BDE)

2.

Which of the following is a common social engineering cyber threat that banks actively educate their customers to identify and avoid, often involving deceptive emails or messages?

A Phishing

B DDoS Attack

C Ransomware

D SQL Injection

3.

Which regulatory body in India primarily issues guidelines and mandates for cybersecurity measures in the banking sector?

A Reserve Bank of India (RBI)

B Securities and Exchange Board of India (SEBI)

C Insurance Regulatory and Development Authority of India (IRDAI)

D Ministry of Finance

4.

Which of the following factors is *most likely* to be a key consideration for the MPC when deciding to maintain a status quo on the repo rate in 2026?

A A stable inflation outlook combined with moderate economic growth projections.

B Sharp increase in global crude oil prices.

C Significant depreciation of the Indian Rupee against major currencies.

D A sudden surge in domestic demand leading to inflationary pressures.

5.

When the Monetary Policy Committee (MPC) decides to maintain a 'status quo' on the repo rate, what does this decision signify?

A The repo rate remains unchanged from its previous level.

B The repo rate is increased to curb inflation.

C The repo rate is decreased to stimulate economic growth.

D The repo rate is temporarily suspended for a specific period.

6.

What is the primary objective of the Monetary Policy Committee (MPC) of the Reserve Bank of India, as mandated by the RBI Act, 1934?

A Maintaining price stability while keeping in mind the objective of growth.

B Maximizing government revenue through interest rate adjustments.

C Ensuring full employment in the economy.

D Managing the foreign exchange reserves to stabilize the rupee.

7.

In the context of the RBI's enhanced digital lending framework, what is the primary requirement for the disbursal and repayment of loans?

A Disbursal and repayment must be executed directly between the borrower and the Regulated Entity (RE) without any pass-through.

B Lending Service Providers (LSPs) can handle the disbursal and repayment on behalf of REs.

C Digital Lending Apps (DLAs) are permitted to manage a pool account for loan transactions.

D Cash transactions are preferred for digital loans to ensure quick processing.

8.

Which core principle regarding data collection by Digital Lending Apps (DLAs) is emphasized in the RBI's enhanced digital lending framework?

A Data collection must be need-based, with explicit consent and audit trails.

B DLAs can collect any data available on the user's device for better credit assessment.

C Consent for data collection is implied upon downloading the app.

D Data can be shared with third parties without explicit user permission for marketing purposes.

9.

As of 2026, which of the following entities bears the ultimate responsibility for the actions of Lending Service Providers (LSPs) and Digital Lending Apps (DLAs) in the RBI's enhanced digital lending framework?

A Regulated Entities (REs)

B Lending Service Providers (LSPs)

C Digital Lending Apps (DLAs)

D National Payments Corporation of India (NPCI)

10.

The Nipun Bharat 2.0 initiative is being implemented under the aegis of which national educational framework or policy?

A National Policy on Skill Development 2015

B National Education Policy (NEP) 2020

C Sarva Shiksha Abhiyan (SSA)

D Rashtriya Madhyamik Shiksha Abhiyan (RMSA)

MCQs 2026