Banking and Finance Current Affairs MCQs

1.

What happens when a UCB is placed under the PCA framework?

A The bank is immediately shut down

B The bank faces restrictions on expansion, dividend distribution, and branch opening

C The government takes over the management of the bank

D The bank is allowed to lend unlimited amounts

2.

Which of the following parameters is NOT typically used to trigger the PCA framework for UCBs?

A Capital Adequacy Ratio (CRAR)

B Net Non-Performing Assets (Net NPAs)

C Return on Assets (ROA)

D Number of employees in the bank

3.

The Prompt Corrective Action (PCA) framework for Urban Cooperative Banks (UCBs) is implemented by which authority?

A Ministry of Finance

B Reserve Bank of India (RBI)

C NABARD

D Registrar of Cooperative Societies

4.

What is the primary objective of the RBI's tightened regulations on Digital Lending Apps?

A To promote the use of cryptocurrency in lending

B To increase the interest rates for digital loans

C To protect borrowers from unethical recovery practices and data privacy breaches

D To eliminate the role of banks in the lending process

5.

Which of the following is a key requirement for Digital Lending Apps (DLAs) regarding data collection?

A Apps can collect data from the user's contact list and photo gallery

B Apps must obtain explicit consent from the borrower for data collection

C Apps are allowed to store biometric data permanently

D Apps do not need to disclose the purpose of data collection

6.

Under the RBI's digital lending guidelines, who is responsible for the repayment of loans taken through digital lending apps?

A The Digital Lending App (DLA) itself

B The Regulated Entity (RE) like a Bank or NBFC

C The Payment Aggregator

D The borrower's employer

Banking & Finance MCQs - 2026-05-15