Banking & Finance MCQs - 19 April 2026

1.

Which of the following is a key benefit of UPI's international expansion?

A Elimination of all currency exchange rates

B Reduced reliance on international card networks like Visa/Mastercard

C Mandatory conversion of all European currencies to INR

D Increased interest rates on savings accounts

2.

The expansion of UPI services to European nations primarily aims to facilitate:

A Domestic retail payments within Europe

B Cross-border remittances and merchant payments for Indians

C Government tax collection in Europe

D Stock market trading in Europe

3.

Which organization is responsible for the international expansion of UPI services?

A Reserve Bank of India

B NPCI International Payments Limited (NIPL)

C State Bank of India

D Ministry of External Affairs

4.

Under the new framework, who is responsible for the outcomes of AI-driven credit decisions?

A The AI software developer

B The Regulated Entity (Bank/NBFC)

C The RBI itself

D The borrower

5.

Which of the following is a key concern addressed by the RBI regarding AI in credit assessment?

A Lack of internet speed

B Algorithmic bias and lack of explainability

C High cost of hardware

D Excessive use of paper documents

6.

What is the main objective of the RBI's regulatory framework for AI-driven credit assessment?

A To ban the use of AI in banking

B To ensure transparency, fairness, and accountability in algorithmic lending

C To increase the interest rates for AI-based loans

D To mandate the use of AI for all rural banks

7.

Who is the issuer of the Retail Digital Rupee (e₹-R)?

A National Payments Corporation of India (NPCI)

B State Bank of India

C Reserve Bank of India (RBI)

D Ministry of Finance

8.

Which technology is primarily used by the RBI for the CBDC-R pilot project?

A Centralized Database

B Distributed Ledger Technology (DLT)

C Cloud Computing only

D Traditional Banking Core System

9.

What is the primary nature of the Retail Digital Rupee (e₹-R) introduced by the RBI?

A A digital form of currency notes and coins

B A cryptocurrency based on blockchain

C A private digital asset

D A credit-based payment instrument

Banking & Finance MCQs - 2026-04-19