Banking & Finance MCQs

Enhanced financial inclusion empowers individuals by facilitating savings, investment, and access to credit, which in turn contributes to economic growth and poverty reduction.

The FI-Index measures progress in formal financial inclusion. Growth in informal lending practices would be contrary to this objective.

The latest FI-Index update covers the period up to December 2025.

The Reserve Bank of India (RBI), in collaboration with other stakeholders, developed and releases the Financial Inclusion Index (FI-Index).

The framework seeks to foster innovation in the digital lending space while simultaneously ensuring robust consumer protection and maintaining financial stability.

The framework introduces stricter regulations on how digital lending platforms can collect and use borrower data, aiming to protect their privacy.

To enhance transparency and accountability, the framework prohibits the use of pass-through or pooling arrangements with Lending Service Providers (LSPs) for loan disbursals and repayments.

The framework mandates that all charges and fees associated with a digital loan must be clearly disclosed to the borrower upfront.

The Reserve Bank of India (RBI) is the central bank responsible for regulating lending activities in India, including digital lending.

ESG stands for Environmental, Social, and Governance, which are key factors considered by investors looking for sustainable and responsible investments.