MCQs on Banking & Finance: RBI, Digital Lending, Financial Inclusion

1.

Which digital initiative has significantly boosted financial inclusion in India?

A Unified Payments Interface (UPI)

B Real-Time Gross Settlement (RTGS)

C National Electronic Funds Transfer (NEFT)

D Cheque Truncation System

2.

What is the primary goal of financial inclusion initiatives by Public Sector Banks?

A To increase the profit of private banks

B To provide banking services to unbanked and marginalized sections

C To reduce the number of bank branches

D To promote foreign investment

3.

Which scheme is the flagship program for financial inclusion in India?

A Pradhan Mantri Jan Dhan Yojana (PMJDY)

B Atal Pension Yojana

C Pradhan Mantri Mudra Yojana

D Stand Up India

4.

Which entities are primarily regulated under the new digital lending guidelines?

A Only non-banking financial companies (NBFCs)

B Only fintech startups

C Regulated Entities (REs) like Banks and NBFCs

D All e-commerce platforms

5.

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

A To increase the interest rate

B To provide transparency regarding the Annual Percentage Rate (APR)

C To limit the number of loans per person

D To ban digital lending apps

6.

Under the new RBI guidelines, who must receive the loan funds directly?

A The Lending Service Provider (LSP)

B The borrower's bank account

C The digital platform's escrow account

D The third-party payment aggregator

7.

Which rate is considered the benchmark policy rate in India?

A Bank Rate

B Reverse Repo Rate

C Repo Rate

D Marginal Standing Facility

8.

What is the primary objective of the RBI maintaining key interest rates?

A To increase fiscal deficit

B To manage inflation and ensure economic stability

C To reduce foreign exchange reserves

D To privatize public sector banks

9.

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

A Monetary Policy Committee (MPC)

B Financial Stability and Development Council

C Economic Advisory Council

D Public Accounts Committee

10.

Which of the following is a common security measure recommended in the new digital payment guidelines?

A Using the same password for all online accounts.

B Sharing One-Time Passwords (OTPs) with unknown callers.

C Enabling Two-Factor Authentication (2FA) wherever possible.

D Clicking on suspicious links in emails or messages.

Banking & Finance MCQs