MCQs on RBI Digital Rupee and ULI Integration April 2026

131.

What benefit will borrowers likely experience due to the new framework?

A Higher interest rates on all loans.

B Reduced risk of predatory lending practices.

C Less access to loan information.

D Increased data sharing with third parties.

132.

Which of the following is NOT a mandate under the new RBI framework for digital lending?

A Clear disclosure of all charges.

B Robust data protection measures.

C Mandatory investment in physical branches.

D Adherence to codes of conduct by LSPs.

133.

What is a key concern addressed by the RBI's new framework for digital lending platforms?

A Lack of innovation in lending technology.

B Transparency, data privacy, and fair practices.

C Over-reliance on traditional banking channels.

D Insufficient competition among digital lenders.

134.

The RBI's revised guidelines are aimed at strengthening which aspect of the financial system?

A Aggressive market expansion.

B Systemic stability and prudent risk management.

C Rapid growth of unsecured lending.

D Diversification into non-financial sectors.

135.

How might these changes impact banks in the short term?

A Significant increase in immediate profits.

B Potential reduction in short-term profitability due to prudent strategies.

C No impact on profitability.

D Mandatory increase in dividend payouts.

136.

What is a primary objective of the RBI's revised investment guidelines for banks?

A To increase short-term profitability of banks.

B To encourage speculative trading by banks.

C To enhance the quality of assets held by banks and reduce risk.

D To promote investment in startups without any oversight.

137.

Which type of financial instruments are particularly affected by the new RBI norms?

A Government securities only.

B Instruments with higher risk profiles or complex structures.

C Low-risk, short-term debt instruments.

D Foreign currency denominated bonds.

138.

What has the Reserve Bank of India (RBI) recently mandated regarding banks' investments?

A Looser norms for investments in all financial instruments.

B Stricter norms for investments in certain financial instruments.

C A complete ban on investments in equity markets.

D Increased freedom to invest in unregulated entities.

139.

What is a potential outcome of implementing stricter norms for banks?

A Increased risk of financial fraud.

B Weakening of depositor protection.

C A more resilient banking system.

D Reduced innovation in financial services.

140.

Who is responsible for issuing these enhanced guidelines to commercial banks?

A Ministry of Corporate Affairs

B Securities and Exchange Board of India (SEBI)

C Reserve Bank of India (RBI)

D Indian Banks' Association (IBA)

Banking & Finance MCQs