MCQs on Banking & Finance: RBI Policy & Digital Lending Updates

1.

Which of the following is a key requirement for Lending Service Providers (LSPs) under the new RBI digital lending guidelines?

A LSPs must have their own Non-Banking Financial Company (NBFC) license.

B LSPs must disclose all fees and charges upfront to the borrower.

C LSPs are allowed to recover principal and interest directly from the borrower.

D LSPs can use any data collected from the borrower for marketing purposes without explicit consent.

2.

Under the new RBI framework for digital lending, all loan disbursements and repayments must be executed directly between which two parties?

A Borrower and Lending Service Provider (LSP)

B Borrower and Regulated Entity (RE)

C LSP and Regulated Entity (RE)

D Borrower and Payment Gateway

3.

What is the primary objective behind the RBI's new regulatory framework for digital lending platforms?

A To promote rapid growth of FinTech companies.

B To ensure consumer protection and curb unethical lending practices.

C To increase the government's revenue through taxation of digital lenders.

D To facilitate easier access to credit for all segments of society.

4.

An unchanged Repo Rate of 6.5% in the April 2026 Monetary Policy Review typically indicates what stance by the RBI?

A Accommodative stance

B Hawkish stance

C Neutral stance / Withdrawal of accommodation

D Dovish stance

5.

Which body is responsible for deciding the benchmark interest rates, including the Repo Rate, in India?

A Ministry of Finance

B Reserve Bank of India Governor

C Monetary Policy Committee (MPC)

D Indian Banks' Association (IBA)

6.

In the context of monetary policy, what does the Repo Rate primarily signify?

A The rate at which commercial banks lend to the RBI.

B The rate at which the RBI lends short-term money to commercial banks.

C The rate at which the government borrows from the RBI.

D The rate at which commercial banks lend to each other.

Banking & Finance MCQs - 2026-04-28