Banking & Finance MCQs - May 2026 Current Affairs

151.

The new RBI guidelines on digital lending primarily aim to regulate which entities?

A Only unregulated FinTech companies.

B Only banks and Non-Banking Financial Companies (NBFCs).

C Regulated Entities (REs) and Lending Service Providers (LSPs) engaged by them.

D Only individual digital lenders.

152.

Which of the following is a key measure introduced by RBI to enhance transparency in digital lending?

A Mandatory disclosure of the Annual Percentage Rate (APR) and a 'cooling-off' period for borrowers.

B Allowing LSPs to charge any fees directly from the borrower.

C Removing the need for a Key Fact Statement (KFS) for small-value loans.

D Permitting automatic increase in credit limits without explicit consent.

153.

According to the RBI's new digital lending guidelines, how should the loan disbursement be made?

A Directly from the Regulated Entity's (RE) account to the borrower's bank account.

B Through a third-party wallet or account managed by a Lending Service Provider (LSP).

C In cash, if the loan amount is below a certain threshold.

D To any account specified by the Lending Service Provider (LSP).

154.

Who is responsible for the appointment of an external reviewer to provide assurance on the allocation of SGB proceeds under the updated framework?

A The Reserve Bank of India (RBI)

B The Ministry of Finance

C The issuing banks

D The Securities and Exchange Board of India (SEBI)

155.

The updated Sovereign Green Bond Framework requires that proceeds from the bonds be allocated to eligible green projects. Which of the following is typically NOT considered an eligible green project category?

A Renewable energy projects

B Sustainable water and wastewater management

C Construction of new coal-fired power plants

D Green buildings

156.

Which of the following is a primary objective of India's Sovereign Green Bond (SGB) framework, as updated by the Finance Ministry?

A To finance the development of new fossil fuel infrastructure.

B To fund projects that contribute to carbon emissions reduction and climate resilience.

C To provide liquidity to the stock market.

D To support the expansion of traditional industries.

157.

What is a significant change introduced by the RBI regarding the upfront disbursal of loan amounts in digital lending?

A Loan amounts must be disbursed directly to the borrower's bank account.

B Lending Service Providers (LSPs) can now disburse loan amounts directly.

C All loan amounts must be disbursed through a bank's escrow account.

D Disbursal can be made in cash to the borrower.

158.

According to the RBI's updated digital lending guidelines, what is the minimum age requirement for an individual to be eligible for a digital loan?

A 18 years

B 21 years

C 23 years

D No specific minimum age is mandated, only legal majority.

159.

Which of the following is NOT a key directive issued by the RBI to tighten digital lending app regulations?

A Mandatory registration of all digital lending apps with RBI.

B Prohibition of automatic increase in credit limits without explicit customer consent.

C Requirement for lenders to provide a Key Fact Statement (KFS) to borrowers.

D Allowing lending service providers (LSPs) to hold customer data indefinitely.

160.

Under the new SEBI norms, AIFs are required to disclose information about their investment strategy and asset allocation. This is intended to:

A Allow competitors to replicate their strategies.

B Help investors understand how their capital is being deployed.

C Reduce the need for due diligence by investors.

D Increase the complexity of fund operations.