Banking and Finance Current Affairs MCQs

1.

A strategic review of the PCA framework for Urban Cooperative Banks is likely to consider:

A Relaxing capital adequacy norms for UCBs.

B Introducing new risk-weighted asset calculations specific to UCBs.

C Adjusting the trigger points and corrective actions based on the unique characteristics of UCBs.

D Removing all supervisory oversight for UCBs.

2.

What is the primary objective of the Prompt Corrective Action (PCA) framework for banks?

A To encourage aggressive lending practices.

B To monitor and address financial distress at an early stage.

C To facilitate mergers and acquisitions of weak banks.

D To increase the profitability of all banks.

3.

The Reserve Bank of India (RBI) recently conducted a strategic review of the Prompt Corrective Action (PCA) framework specifically for which category of banks?

A Public Sector Banks

B Small Finance Banks

C Urban Cooperative Banks

D Payment Banks

4.

The RBI's revised digital lending guidelines aim to protect borrowers by ensuring:

A Only regulated entities can offer digital loans.

B All digital lending platforms use a standardized app interface.

C Fair treatment and transparency in digital lending practices.

D A cap on the maximum interest rate that can be charged.

5.

According to the RBI's enhanced digital lending transparency guidelines, what must be disclosed to the borrower before the loan agreement is executed?

A The credit score of the borrower.

B The total cost of the loan, including all fees and charges.

C The names of all third-party agencies involved in the loan process.

D The projected income of the borrower for the next five years.

6.

Which of the following is NOT a key enhancement in the RBI's revised digital lending transparency guidelines?

A Mandatory disclosure of all-in-cost of loans by lenders.

B Requirement for lenders to appoint a Chief Compliance Officer.

C Prohibition of automatic increase in credit limit without explicit consent.

D Standardization of loan repayment schedules across all digital lending platforms.

Banking & Finance MCQs - 2026-05-16