Banking & Finance MCQs - 2026-06-09

The framework clarifies that only entities regulated by the RBI (Regulated Entities - REs) are permitted to undertake lending activities. LSPs are agents of REs and cannot lend on their own.

The 'cooling-off' or 'look-up' period allows borrowers to exit the loan by paying the principal and proportionate annual percentage rate (APR) without any penalty during this period, providing them flexibility and protection.

The RBI framework mandates that the disbursement of loans must be made directly into the bank accounts of the borrowers and not through any third party, including Lending Service Providers (LSPs).

The RB-IOS, 2021, covers all commercial banks, Regional Rural Banks, Scheduled Primary (Urban) Co-operative Banks, and Non-Scheduled Primary (Urban) Co-operative Banks with deposits of ₹50 crore and above, NBFCs with asset size of ₹100 crore and above, and all non-bank Prepaid Payment Instrument (PPI) Issuers. Primary Agricultural Credit Societies (PACS) are generally not directly regulated by RBI under this scheme.

The RB-IOS, 2021, adopts the 'One Nation One Ombudsman' approach, providing a single point of reference for customers to file complaints against any regulated entity covered under the scheme, irrespective of the type of entity or location.

The Reserve Bank - Integrated Ombudsman Scheme (RB-IOS), 2021, integrates the Banking Ombudsman Scheme, 2006, the Ombudsman Scheme for Non-Banking Financial Companies, 2018, and the Ombudsman Scheme for Digital Transactions, 2019.