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Banking & Finance MCQs - 2026-06-28

1.
What is a key initiative supported by RBI that leverages digital technology to provide basic banking services and promote financial literacy among the masses?
A Corporate Social Responsibility (CSR) mandates
B Pradhan Mantri Jan Dhan Yojana (PMJDY)
C Foreign Direct Investment (FDI) policies
D Monetary Policy Committee (MPC) meetings
2.
RBI's efforts to promote financial inclusion through digital channels primarily aim to bring which segment of the population into the formal financial system?
A High net-worth individuals
B Urban salaried professionals
C Unbanked and underserved populations in rural and remote areas
D Large corporate entities
3.
Which digital payment system has been significantly promoted by RBI to achieve financial inclusion by enabling instant, low-cost, and interoperable transactions?
A Real-Time Gross Settlement (RTGS)
B National Electronic Funds Transfer (NEFT)
C Unified Payments Interface (UPI)
D Cheque Truncation System (CTS)
4.
What measure does RBI recommend for banks to effectively manage and mitigate risks associated with third-party service providers in the context of cybersecurity?
A Avoiding all third-party engagements
B Conducting thorough due diligence and continuous monitoring of vendors
C Transferring all cybersecurity responsibilities to vendors
D Limiting third-party services to non-critical operations only
5.
Which of the following is a key component emphasized by RBI for banks to build robust cybersecurity defenses?
A Outsourcing all IT operations to third-party vendors
B Implementing a strong Cyber Security Framework and conducting regular audits
C Reducing the number of digital transactions
D Relying solely on government-provided security solutions
6.
What is the primary objective of RBI's enhanced focus on cybersecurity resilience in the banking sector?
A To reduce the number of physical bank branches
B To ensure business continuity and protect customer data from cyber threats
C To promote the use of cash transactions over digital ones
D To standardize banking software across all banks
7.
Which entities are primarily covered under the RBI's regulatory framework for digital lending?
A Only FinTech companies
B Only banks and Non-Banking Financial Companies (NBFCs)
C Regulated Entities (REs) and their Lending Service Providers (LSPs)
D All entities offering any form of digital credit
8.
According to RBI's digital lending guidelines, which document is mandatory for all regulated entities to provide to the borrower before loan disbursement?
A A detailed credit report
B A Key Fact Statement (KFS)
C A physical copy of the loan agreement
D Proof of income certificate
9.
What is a key measure introduced by RBI in its enhanced digital lending framework to protect borrowers from predatory practices?
A Mandatory physical verification of borrowers
B Introduction of a 'cooling-off' period for borrowers to exit the loan
C Higher interest rate caps for digital loans
D Direct disbursement of loans to third-party wallets
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