Banking & Finance MCQs - May 2026 Current Affairs

1.

What is the significance of including 'social infrastructure' and 'renewable energy' under PSL, which indirectly benefits MSMEs?

A It reduces the overall PSL target for banks.

B It provides opportunities for MSMEs involved in these sectors to access credit.

C It makes it harder for MSMEs to get loans.

D It has no impact on MSMEs.

2.

Which of the following is a key change introduced by RBI in the PSL norms for MSMEs?

A Excluding all MSMEs from priority sector classification.

B Introducing higher credit limits for certain categories of MSMEs under PSL.

C Making it optional for banks to lend to MSMEs.

D Removing the definition of MSMEs for lending purposes.

3.

What is the primary objective behind the RBI's enhancement of Priority Sector Lending (PSL) norms for MSMEs?

A To reduce the overall lending by banks.

B To ensure increased credit flow to the Micro, Small, and Medium Enterprises sector.

C To shift focus from domestic to international lending.

D To make MSMEs less reliant on bank credit.

4.

What is a mandatory requirement for Digital Lending Apps (DLAs) regarding data collection under the new RBI framework?

A DLAs can collect any data without explicit consent.

B DLAs must obtain explicit consent for all data collection and disclose its usage.

C DLAs are prohibited from collecting any user data.

D DLAs can sell user data to third parties without consent.

5.

Under the new RBI framework, all loan disbursements and repayments must be executed directly between the borrower and which entity?

A The Digital Lending App (DLA).

B The Regulated Entity (RE) or its bank account.

C A third-party payment gateway.

D Any unregistered lending service provider.

6.

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

A To encourage unregulated digital lending activities.

B To enhance customer protection and ensure fair practices in digital lending.

C To restrict the growth of FinTech companies.

D To promote foreign investment in digital lending.

7.

Under the RBI's enhanced cyber security guidelines, what role is typically expected from the Board of Directors of banks?

A To directly manage daily IT operations.

B To approve all individual customer transactions.

C To provide strategic oversight and ensure adequate resources for cyber security.

D To conduct external cyber security audits.

8.

Which of the following is a key area emphasized by RBI in its enhanced cyber security framework for banks?

A Mandatory investment in physical infrastructure.

B Strengthening incident response and recovery mechanisms.

C Reducing the number of digital transactions.

D Outsourcing all IT operations to third-party vendors.

9.

What is the primary objective behind the RBI's mandate for enhanced cyber security measures for banks?

A To reduce operational costs for banks.

B To protect customer data and financial systems from cyber threats.

C To promote digital banking adoption.

D To increase competition among banks.

10.

Which of the following tools is often encouraged by the RBI in its stressed asset resolution frameworks for multiple lenders to a common borrower?

A Direct government bailout

B Inter-Creditor Agreement (ICA)

C Unilateral debt write-off by the largest lender

D Mandatory conversion of debt into equity for all lenders