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

41.

What is the primary objective of the RBI's stricter digital lending guidelines?

A To increase the number of digital lending apps

B To enhance consumer protection and data privacy

C To reduce the role of banks in lending

D To promote cryptocurrency usage

42.

Under the new RBI digital lending guidelines, who is responsible for the repayment of loans?

A The Lending Service Provider (LSP)

B The Regulated Entity (RE) directly

C The third-party recovery agent

D The digital platform owner

43.

Which body is responsible for deciding the Repo Rate in India?

A Ministry of Finance

B Securities and Exchange Board of India (SEBI)

C Monetary Policy Committee (MPC)

D NITI Aayog

44.

What does a 'Hawkish Stance' by the RBI typically imply?

A A preference for lowering interest rates to boost growth

B A focus on controlling inflation by keeping interest rates high

C A neutral approach towards monetary policy

D An increase in liquidity injection into the market

45.

What is the current Repo Rate maintained by the Reserve Bank of India (RBI) in its recent monetary policy review?

A 6.0%

B 6.25%

C 6.5%

D 6.75%

46.

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.

47.

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.

48.

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

49.

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.

50.

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.

Banking & Finance MCQs