Banking & Finance MCQs - May 2026 Current Affairs

131.

Which committee is responsible for deciding the Repo Rate in India?

A Monetary Policy Committee (MPC)

B Financial Stability Committee

C Economic Advisory Council

D Banking Regulation Committee

132.

What is the current Repo Rate maintained by the Reserve Bank of India (RBI) as per the latest monetary policy?

A 6.0%

B 6.25%

C 6.5%

D 6.75%

133.

The strategic review of the PCA framework for UCBs aims to align it more closely with the PCA framework for Scheduled Commercial Banks. What is a likely outcome of such an alignment?

A Increased regulatory burden on all UCBs, regardless of their size.

B Introduction of more stringent risk thresholds and corrective actions for UCBs.

C Complete deregulation of the cooperative banking sector.

D Reduced supervisory oversight for well-managed UCBs.

134.

Which of the following is a key indicator monitored under the PCA framework for Urban Cooperative Banks?

A Customer satisfaction index.

B Capital to Risk-weighted Assets Ratio (CRAR).

C Number of branches opened in the last fiscal year.

D Employee turnover rate.

135.

The Reserve Bank of India (RBI) recently conducted a strategic review of the Prompt Corrective Action (PCA) framework for Urban Cooperative Banks (UCBs). What is the primary objective of the PCA framework?

A To encourage aggressive expansion of UCBs into new markets.

B To ensure financial stability and health of UCBs by imposing restrictions when certain risk thresholds are breached.

C To provide subsidies to UCBs facing financial difficulties.

D To facilitate mergers and acquisitions among UCBs.

136.

What is the purpose of the 'cooling-off period' introduced by the RBI in its digital lending transparency norms?

A To allow the lender to assess the borrower's repayment capacity.

B To provide borrowers with an opportunity to review loan terms and cancel if dissatisfied.

C To enable the lender to disburse the loan amount faster.

D To allow the borrower to negotiate for a lower interest rate.

137.

As per the RBI's enhanced digital lending transparency norms, what must be explicitly disclosed to the borrower before the loan agreement is executed?

A The credit score of the borrower.

B The names of all third-party service providers involved.

C The Annual Percentage Rate (APR) and all associated fees and charges.

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

138.

Which of the following is NOT a key enhancement made by the RBI to digital lending transparency norms?

A Mandatory disclosure of all-in-cost of loans to borrowers.

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

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

D Mandatory appointment of a Chief Compliance Officer for all digital lending platforms.

139.

Which of the following is a potential benefit of a retail Central Bank Digital Currency (CBDC) like India's e₹-R?

A Increased reliance on physical cash transactions.

B Reduced costs for cross-border remittances.

C Enhanced anonymity for all transactions, similar to cash.

D Greater financial inclusion and resilience of payment systems.

140.

What is the official name given to India's Central Bank Digital Currency (CBDC)?

A Digital Rupee

B BharatCoin

C e₹ (e-Rupee)

D India Digital Cash