Banking and Finance Practice MCQs for Competitive Exams 2026

1.

The Finance Ministry's AI roadmap for PSBs emphasizes the need for which of the following?

A Data privacy and ethical AI frameworks

B Complete replacement of human staff

C Elimination of digital banking

D Increasing manual ledger entries

2.

Which technology is being prioritized by the Finance Ministry to improve credit risk assessment in PSBs?

A Blockchain technology

B Artificial Intelligence and Machine Learning

C Quantum Computing

D Cloud storage only

3.

What is the primary focus of the Finance Ministry's roadmap for AI adoption in Public Sector Banks (PSBs)?

A Reducing the number of bank branches

B Enhancing operational efficiency and customer service

C Privatizing all public sector banks

D Increasing the physical currency circulation

4.

What is the primary objective of the 'Key Fact Statement' (KFS) mandated by the RBI for digital loans?

A To increase the interest rates

B To provide transparency regarding the Annual Percentage Rate (APR)

C To promote digital marketing of loans

D To reduce the documentation process for banks

5.

According to RBI norms, where must the loan funds be directly transferred?

A To the Lending Service Provider's account

B To the borrower's bank account

C To a third-party escrow account

D To the digital wallet of the agent

6.

Under RBI's digital lending guidelines, who is responsible for ensuring that the Key Fact Statement (KFS) is provided to the borrower?

A The Lending Service Provider (LSP)

B The Regulated Entity (RE)

C The borrower themselves

D The Ministry of Finance

Banking & Finance MCQs - 2026-04-17