MCQs on Banking & Finance: RBI, Digital Lending, Financial Inclusion

21.

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

22.

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

23.

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

24.

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

25.

Which technology is primarily used for the Digital Rupee (e-Rupee) transactions?

A Blockchain/Distributed Ledger Technology

B Cloud Computing only

C Magnetic Ink Character Recognition

D Artificial Intelligence only

26.

The Digital Rupee (e-Rupee) is a form of which of the following?

A Cryptocurrency

B Central Bank Digital Currency (CBDC)

C Private Digital Token

D Foreign Currency

27.

What is the primary objective of introducing offline capabilities in the Digital Rupee (e-Rupee) pilot?

A To increase bank interest rates

B To facilitate transactions in areas with poor internet connectivity

C To replace physical currency completely

D To reduce the number of bank branches

28.

Which act provides the statutory basis for the Monetary Policy Committee in India?

A Banking Regulation Act, 1949

B Reserve Bank of India Act, 1934

C Finance Act, 2016

D RBI Amendment Act, 2016

29.

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

A 4

B 5

C 6

D 7

30.

What is the current Repo Rate as maintained by the RBI's Monetary Policy Committee?

A 6.0%

B 6.25%

C 6.5%

D 6.75%

Banking & Finance MCQs