Banking & Finance MCQs: RBI, Digital Lending, Green Finance

1.

Why is the RBI focusing on 'Climate Risk' in the banking sector?

A Because climate change can impact loan repayment and asset quality

B To increase the cost of banking services

C To stop international trade

D To promote digital currency only

2.

Which of the following is a key component of Green Finance?

A Funding for fossil fuel projects

B Investment in renewable energy and sustainable projects

C Short-term speculative trading

D Increasing plastic production

3.

What is the primary focus of the RBI's Green Finance Regulatory Framework?

A To promote coal mining investments

B To mitigate climate-related financial risks

C To increase consumer spending on luxury goods

D To reduce the number of public sector banks

4.

How does the digital lending platform promote financial inclusion?

A By increasing interest rates

B By making credit accessible to those without formal credit history

C By limiting bank branches

D By banning digital payments

5.

Which concept is central to the Unified Digital Lending Platform?

A Public Credit Registry

B Cash-based lending

C Manual verification

D Offline banking

6.

What is the main purpose of the Unified Digital Lending Platform?

A To provide physical cash to rural areas

B To streamline and digitize the credit delivery process

C To regulate cryptocurrency trading

D To manage government tax collection

7.

How many members are there in the Monetary Policy Committee (MPC)?

A 4

B 5

C 6

D 7

8.

What is the primary objective of the RBI's monetary policy?

A To increase fiscal deficit

B To maintain price stability while keeping growth in mind

C To manage stock market volatility

D To regulate foreign trade

9.

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 Board

Banking & Finance MCQs - 2026-06-07