Banking & Finance MCQs - May 2026 Current Affairs

31.

What is a key objective of the RBI's enhanced transparency measures in digital lending?

A To encourage predatory lending practices.

B To protect borrowers from unfair practices and ensure informed decision-making.

C To increase the operational costs for digital lenders.

D To reduce the availability of credit to small businesses.

32.

As per the RBI's guidelines on digital lending, what is the 'all-in-cost' of a loan supposed to include?

A Only the principal and interest rate.

B Interest rate, processing fees, and other charges.

C Only the processing fees and late payment charges.

D Principal, interest rate, and any penalty for early repayment.

33.

Which of the following measures has been introduced by the RBI to enhance transparency in digital lending?

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

B Introduction of a standardized loan agreement format.

C Requirement for lenders to provide a cooling-off period for borrowers.

D All of the above.

34.

What is the maximum permissible percentage for 'First Loss Default Guarantee (FLDG)' arrangements between Regulated Entities (REs) and Lending Service Providers (LSPs) as per RBI guidelines?

A 10% of the loan portfolio.

B 5% of the loan portfolio.

C 20% of the loan portfolio.

D 15% of the loan portfolio.

35.

What is the primary purpose of the 'Key Fact Statement (KFS)' mandated by the RBI for digital loans?

A To provide a detailed breakdown of the lender's profit margins.

B To offer a concise and transparent summary of the loan terms and conditions to the borrower.

C To serve as a marketing brochure for new loan products.

D To collect additional personal data from the borrower.

36.

According to the RBI's framework for digital lending, which entities are permitted to carry out digital lending activities?

A Only Lending Service Providers (LSPs).

B Only Regulated Entities (REs) and entities permitted to lend under any other statute.

C Any fintech company registered in India.

D Only Non-Banking Financial Companies (NBFCs).

37.

As per the enhanced prudential norms, what is the minimum Common Equity Tier 1 (CET1) capital requirement for NBFCs in the 'Upper Layer'?

A 5%

B 7%

C 9%

D 11.5%

38.

Which of the following statements is true regarding NBFCs in the 'Upper Layer' under the Scale-Based Regulation (SBR) framework?

A They are subject to the lightest regulatory oversight.

B They are identified as systemically significant and are subject to enhanced prudential norms.

C They are primarily microfinance institutions.

D They are exempt from capital adequacy requirements.

39.

What is the primary objective of RBI's Scale-Based Regulation (SBR) framework for NBFCs?

A To simplify regulatory compliance for all NBFCs.

B To align the regulatory framework for NBFCs with their systemic importance and risk profile.

C To reduce the number of NBFCs operating in India.

D To encourage NBFCs to convert into banks.

40.

The RBI's efforts in digital financial inclusion are closely aligned with which government initiative aimed at leveraging digital public infrastructure?

A Make in India

B Swachh Bharat Abhiyan

C Digital India

D Skill India Mission