RBI Digital Lending & Financial Inclusion MCQs for UPSC, SSC, Banking

1.

RBI has established an Innovation Hub to foster innovation in the financial sector. What is one of its primary objectives related to financial inclusion?

A To develop new lending products for large corporations.

B To promote research in traditional banking methods.

C To facilitate an environment for innovation that addresses the needs of the unbanked and underserved.

D To regulate international financial markets.

2.

What is a key strategy adopted by RBI to enhance financial inclusion through digital initiatives?

A Limiting access to digital banking services.

B Promoting cash-based transactions.

C Strengthening digital payment infrastructure and promoting financial literacy.

D Discouraging the use of mobile banking.

3.

Which digital payment system has been instrumental in driving financial inclusion in India, especially for small value transactions?

A RTGS

B NEFT

C UPI

D IMPS

4.

What is the purpose of the 'cooling-off' or 'look-up' period introduced by RBI for digital loans?

A To allow borrowers to repay the loan early without penalty.

B To provide borrowers an option to exit the loan by paying the principal and proportionate APR without penalty.

C To allow lenders to re-evaluate the borrower's creditworthiness.

D To enable LSPs to collect additional documentation.

5.

According to RBI's new norms, what is the primary responsibility of regulated entities (REs) concerning Lending Service Providers (LSPs)?

A LSPs are solely responsible for all customer grievances.

B REs must ensure LSPs adhere to fair practices and data privacy.

C LSPs can independently sanction loans without RE approval.

D REs are not accountable for the actions of LSPs.

6.

What is a key norm introduced by RBI for digital lending platforms regarding loan disbursement?

A Loans must be disbursed directly into the borrower's bank account.

B Loans can be disbursed to the LSP's account first.

C Loans can be disbursed in cash.

D Loans can be disbursed to any third-party account.

Banking & Finance MCQs - 2026-06-24