Banking and Finance Current Affairs MCQs for Competitive Exams

1.

Which entity is responsible for issuing the PCA framework guidelines for Urban Cooperative Banks in India?

A Ministry of Finance

B NABARD

C Reserve Bank of India (RBI)

D Securities and Exchange Board of India (SEBI)

2.

What is the main purpose of placing an Urban Cooperative Bank under the PCA framework?

A To shut down the bank immediately

B To facilitate timely intervention and corrective measures

C To increase the interest rates for depositors

D To merge the bank with a private sector bank

3.

The Prompt Corrective Action (PCA) framework for Urban Cooperative Banks (UCBs) is primarily based on which of the following parameters?

A Capital, Asset Quality, and Profitability

B Customer base and Branch network

C Number of employees and IT infrastructure

D Social media presence and marketing budget

4.

Which document must be provided to the borrower by the Regulated Entity containing all-inclusive cost of digital loans?

A Key Fact Statement (KFS)

B Annual Information Return

C Credit Information Report

D Loan Sanction Letter

5.

What is the primary objective of the RBI's mandate regarding the direct flow of funds between the bank accounts of the borrower and the Regulated Entity?

A To increase the interest rates on digital loans

B To eliminate the role of pass-through accounts of LSPs

C To promote the use of cryptocurrency in lending

D To reduce the number of digital lenders

6.

Under the 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

D The Payment Aggregator

Banking & Finance MCQs - 2026-04-21