Banking & Finance MCQs

Existing Payment Aggregators are required to apply for authorization from the RBI to continue their operations, ensuring they meet the specified regulatory and operational standards.

The RBI introduced new guidelines to regulate Payment Aggregators (PAs) and bring them under direct supervision, thereby enhancing customer security, data protection, and overall stability of the digital payment ecosystem.

The guidelines apply to all Regulated Entities (REs) of the RBI, including commercial banks, cooperative banks, NBFCs, and their Lending Service Providers (LSPs) engaged in digital lending.

The framework mandates that the loan disbursement and repayment must be executed directly between the borrower and the Regulated Entity's (RE) bank account, without any pass-through or pooling of funds by the Lending Service Provider (LSP).

The primary objective of the RBI's enhanced digital lending framework is to ensure fair lending practices, transparency, and robust consumer protection in the digital lending ecosystem.

RBI's regulations concerning digital banking security typically encompass all banks and other financial institutions under its purview that provide digital banking services.

New guidelines often focus on technological advancements like multi-factor authentication and sophisticated fraud detection systems to bolster digital security.

The primary aim of these guidelines is to strengthen the security of digital banking services, thereby protecting customers from fraud and fostering greater confidence in the digital ecosystem.

Keeping the repo rate stable often signifies the RBI's attempt to balance the need to control inflation with the objective of supporting economic growth.

The Monetary Policy Committee (MPC) is responsible for setting the policy repo rate in India.