Banking & Finance MCQs

By leveraging UPI's existing infrastructure, cross-border remittances can become more efficient and cost-effective, benefiting individuals sending money abroad.

Well-capitalized banks are in a better position to lend, which can lead to increased investment, job creation, and overall economic growth.

The government typically recapitalizes PSBs by subscribing to their rights issues or through preferential allotment of shares, which directly increases the banks' capital base.

Recapitalization injects capital into PSBs, strengthening their balance sheets and enabling them to lend more, which is crucial for driving economic growth.

The guidelines stipulate that any fee or charge payable by the borrower must be collected directly from the borrower's bank account with their explicit consent, and not through any third-party.

The guidelines mandate that only entities regulated by the RBI, such as banks and NBFCs, can undertake digital lending activities.

The RBI's enhanced digital lending guidelines aim to safeguard borrowers from unfair practices and ensure transparency and fairness in digital lending.

A primary goal of green finance is to channel funds towards environmentally sustainable projects and activities, which directly supports the transition to a low-carbon and climate-resilient economy.

The framework aims to provide a structured approach for banks to integrate environmental considerations into their lending and investment decisions, thereby promoting green finance.

The Indian Banks' Association (IBA) has released a comprehensive Green Finance Framework aimed at guiding Indian banks towards sustainable financing practices.