RBI & Banking Sector MCQs: Latest Reforms and Regulations

1.

The Customer Centricity Framework introduced by RBI is primarily intended to benefit which of the following?

A Only bank employees

B Only bank shareholders

C Bank customers, by ensuring better service and protection of their rights

D Only large corporate clients of banks

2.

Which of the following aspects is a key focus area under RBI's Customer Centricity Framework for banks?

A Reducing the number of bank branches

B Strengthening grievance redressal mechanisms and transparency in product offerings

C Mandating banks to invest in specific government bonds

D Restricting customer access to banking information

3.

What is the primary objective of the RBI's new Customer Centricity Framework for banks?

A To increase bank profits by reducing customer service costs

B To ensure fair treatment of customers and enhance the quality of customer service

C To limit the number of services offered by banks

D To promote digital-only banking services

4.

The enhanced regulatory framework for NBFCs, often referred to as the Scale-Based Regulation (SBR), categorizes NBFCs based on what?

A Their geographical presence

B Their size, activity, and perceived riskiness

C The number of employees they have

D The type of customers they serve

5.

Which of the following is a common area where RBI has tightened norms for NBFCs, particularly concerning asset quality?

A Relaxing Non-Performing Asset (NPA) classification norms

B Introducing stricter income recognition and asset classification (IRAC) norms

C Allowing NBFCs to hold unlimited liquid assets

D Reducing capital adequacy requirements

6.

What is a key reason for the RBI tightening norms for Non-Banking Financial Companies (NBFCs)?

A To encourage more NBFCs to enter the market

B To align NBFC regulations with international banking standards and mitigate systemic risks

C To reduce the overall lending capacity of NBFCs

D To promote only government-owned NBFCs

7.

The new framework by RBI for digital payment security is expected to primarily address which of the following concerns?

A Lack of physical infrastructure for payments

B Increasing instances of cyber fraud and data breaches in digital payments

C High transaction fees for digital payments

D Limited availability of digital payment options

8.

Which of the following entities are primarily covered under RBI's new framework for enhancing digital payment security?

A Only traditional banks

B Only foreign exchange dealers

C Payment System Operators (PSOs) and Payment System Participants (PSPs)

D Only government-owned financial institutions

9.

What is the primary objective of the new framework introduced by RBI for digital payment security?

A To promote cash transactions

B To enhance the security and resilience of digital payment systems

C To reduce the number of digital payment users

D To regulate international payment gateways only

Banking & Finance MCQs - 2026-06-14