According to the new RBI guidelines for digital lending, how must loan disbursements and repayments be handled?
A Directly between the borrower's bank account and the Regulated Entity (RE) bank account.
B Through Lending Service Providers (LSPs) or their accounts.
C Via third-party digital wallets or payment aggregators.
D Any of the above methods, as per mutual agreement.
Answer: A
The RBI mandates that loan disbursements and repayments must be executed directly between the borrower's bank account and the Regulated Entity (RE) bank account, without any pass-through or pool account of the Lending Service Provider (LSP).
162.
What is the primary objective of RBI's enhanced regulatory framework for digital lending?
A To ensure consumer protection and responsible lending practices.
B To promote rapid growth of digital lending companies.
C To increase the profitability of Regulated Entities (REs).
D To reduce the operational costs for digital lenders.
Answer: A
The primary objective of RBI's enhanced regulatory framework for digital lending is to protect consumers from predatory practices, ensure transparency, and promote responsible lending.
163.
As per the RBI's new framework for digital lending, which entities are permitted to undertake lending activities?
A Only digital lending apps registered with the Ministry of Corporate Affairs.
B Only entities regulated by the RBI (Regulated Entities - REs).
C Any fintech company, irrespective of RBI regulation.
D Lending Service Providers (LSPs) directly.
Answer: B
The framework clarifies that only entities regulated by the RBI (Regulated Entities - REs) are permitted to undertake lending activities. LSPs are agents of REs and cannot lend on their own.
164.
What is the purpose of the 'cooling-off' or 'look-up' period introduced by the RBI in its digital lending guidelines?
A To allow borrowers to apply for another loan immediately.
B To enable borrowers to exit the loan by paying the principal and proportionate annual percentage rate (APR) without penalty.
C To provide time for the Lending Service Provider (LSP) to verify documents.
D To allow lenders to revise interest rates after loan disbursement.
Answer: B
The 'cooling-off' or 'look-up' period allows borrowers to exit the loan by paying the principal and proportionate annual percentage rate (APR) without any penalty during this period, providing them flexibility and protection.
165.
According to the RBI's new framework for digital lending, to whom must the disbursement of loans be made directly?
A To the Lending Service Provider (LSP)
B To the borrower's bank account
C To the merchant for whom the loan is taken
D To the digital lending app's wallet
Answer: B
The RBI framework mandates that the disbursement of loans must be made directly into the bank accounts of the borrowers and not through any third party, including Lending Service Providers (LSPs).
166.
Which of the following entities is NOT covered under the Reserve Bank - Integrated Ombudsman Scheme (RB-IOS), 2021?
A Commercial Banks
B Non-Banking Financial Companies (NBFCs) with asset size of βΉ100 crore and above
C Primary Agricultural Credit Societies (PACS)
D Non-bank Prepaid Payment Instrument (PPI) Issuers
Answer: C
The RB-IOS, 2021, covers all commercial banks, Regional Rural Banks, Scheduled Primary (Urban) Co-operative Banks, and Non-Scheduled Primary (Urban) Co-operative Banks with deposits of βΉ50 crore and above, NBFCs with asset size of βΉ100 crore and above, and all non-bank Prepaid Payment Instrument (PPI) Issuers. Primary Agricultural Credit Societies (PACS) are generally not directly regulated by RBI under this scheme.
167.
What is a key feature of the Reserve Bank - Integrated Ombudsman Scheme (RB-IOS), 2021, aimed at simplifying the grievance redressal process for customers?
A Mandatory physical presence for filing complaints.
B A single point of reference for customers to file complaints against regulated entities.
C Exclusion of non-scheduled urban cooperative banks from its purview.
D Requirement for customers to approach individual ombudsman offices based on the type of entity.
Answer: B
The RB-IOS, 2021, adopts the 'One Nation One Ombudsman' approach, providing a single point of reference for customers to file complaints against any regulated entity covered under the scheme, irrespective of the type of entity or location.
168.
Which scheme was launched by the RBI to integrate the three existing ombudsman schemes for banks, NBFCs, and non-bank prepaid payment issuers?
A RBI Integrated Grievance Redressal Scheme, 2021
B One Nation, One Ombudsman Scheme, 2021
C RBI Retail Grievance Redressal Scheme, 2021
D Reserve Bank - Integrated Ombudsman Scheme, 2021
Answer: D
The Reserve Bank - Integrated Ombudsman Scheme (RB-IOS), 2021, integrates the Banking Ombudsman Scheme, 2006, the Ombudsman Scheme for Non-Banking Financial Companies, 2018, and the Ombudsman Scheme for Digital Transactions, 2019.
169.
The RBI's financial inclusion initiatives often involve collaboration with other entities. Which of the following is a common partner in these efforts?
A International arms manufacturers.
B Non-governmental organizations (NGOs) and financial technology (FinTech) companies.
C Luxury goods retailers.
D Foreign stock exchanges only.
Answer: B
NGOs play a crucial role in outreach and awareness, while FinTech companies provide innovative technological solutions that enhance the delivery and accessibility of financial services, aligning with the RBI's goals.
170.
Which of the following is a key strategy often employed by the RBI to promote financial inclusion in remote areas?
A Closing down all rural bank branches.
B Encouraging the use of mobile banking and digital payment solutions.
C Restricting access to basic savings accounts.
D Increasing the minimum balance requirement for all accounts.
Answer: B
Mobile banking and digital platforms significantly reduce the need for physical infrastructure, making financial services more accessible and affordable in remote and underserved regions.
