Banking & Finance MCQs - 2026-04-23

The new guidelines emphasize that DLAs should collect only necessary data, with explicit consent from the borrower, and avoid intrusive data collection such as access to call logs, contact lists, or social media profiles.

The RBI mandates that all loan disbursements and repayments must flow directly between the borrower's bank account and the bank account of the Regulated Entity (RE), such as a bank or an NBFC, without any pass-through to Lending Service Providers (LSPs).

The stricter norms are primarily aimed at safeguarding borrowers from predatory lending practices, exorbitant interest rates, unethical recovery methods, and misuse of personal data by digital lending platforms.

High inflation means that the same amount of money buys fewer goods and services over time, leading to a decrease in the purchasing power of money and an erosion of currency value.

The Repo Rate is a key monetary policy tool used by the RBI. By adjusting the repo rate, RBI influences the cost of borrowing for commercial banks, thereby impacting interest rates in the economy and controlling inflation and liquidity.

Maintaining status quo on the repo rate means the Reserve Bank of India has decided to keep the rate unchanged. This decision is often taken to balance inflation concerns with the need to support economic growth.