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

11.

A key objective of the new digital payment security guidelines is to:

A Promote the use of cash for all transactions.

B Reduce the number of digital payment users.

C Protect consumers from fraudulent activities and enhance trust in digital payments.

D Restrict the types of digital payment methods available.

12.

Which government body has recently issued new guidelines for digital payment security in India?

A Securities and Exchange Board of India (SEBI)

B Ministry of Electronics and Information Technology (MeitY)

C Reserve Bank of India (RBI)

D National Payments Corporation of India (NPCI)

13.

What is the minimum LCR requirement that NBFCs are expected to maintain as per recent RBI guidelines?

A 50%

B 75%

C 100%

D 125%

14.

Which of the following is typically considered a high-quality liquid asset (HQLA) under the LCR framework for NBFCs?

A Unencumbered real estate.

B Corporate bonds with a remaining maturity of less than one year.

C Cash and central bank reserves.

D Loans to other NBFCs.

15.

What is the primary objective of the Reserve Bank of India (RBI) in tightening the Liquidity Coverage Ratio (LCR) norms for Non-Banking Financial Companies (NBFCs)?

A To increase lending to the corporate sector.

B To enhance the resilience of NBFCs to liquidity shocks.

C To reduce the interest rates on loans offered by NBFCs.

D To encourage NBFCs to invest more in government securities.

16.

What is a key initiative supported by RBI that leverages digital technology to provide basic banking services and promote financial literacy among the masses?

A Corporate Social Responsibility (CSR) mandates

B Pradhan Mantri Jan Dhan Yojana (PMJDY)

C Foreign Direct Investment (FDI) policies

D Monetary Policy Committee (MPC) meetings

17.

RBI's efforts to promote financial inclusion through digital channels primarily aim to bring which segment of the population into the formal financial system?

A High net-worth individuals

B Urban salaried professionals

C Unbanked and underserved populations in rural and remote areas

D Large corporate entities

18.

Which digital payment system has been significantly promoted by RBI to achieve financial inclusion by enabling instant, low-cost, and interoperable transactions?

A Real-Time Gross Settlement (RTGS)

B National Electronic Funds Transfer (NEFT)

C Unified Payments Interface (UPI)

D Cheque Truncation System (CTS)

19.

What measure does RBI recommend for banks to effectively manage and mitigate risks associated with third-party service providers in the context of cybersecurity?

A Avoiding all third-party engagements

B Conducting thorough due diligence and continuous monitoring of vendors

C Transferring all cybersecurity responsibilities to vendors

D Limiting third-party services to non-critical operations only

20.

Which of the following is a key component emphasized by RBI for banks to build robust cybersecurity defenses?

A Outsourcing all IT operations to third-party vendors

B Implementing a strong Cyber Security Framework and conducting regular audits

C Reducing the number of digital transactions

D Relying solely on government-provided security solutions

Banking & Finance MCQs