Banking & Finance MCQs

1.

The new RBI framework for digital lending primarily applies to which of the following entities?

A Only traditional brick-and-mortar banks.

B Regulated Entities (REs) and Lending Service Providers (LSPs) engaged in digital lending.

C Only non-banking financial companies (NBFCs).

D Only technology companies providing payment gateway services.

2.

Under the new RBI framework for digital lending, what is a key requirement regarding loan disbursement and repayment?

A Loans must be disbursed directly into the borrower's bank account and repayments collected only through the borrower's bank account.

B Loans can be disbursed to any third-party account as per the borrower's request.

C Repayments can be collected through digital wallets only.

D Lenders are allowed to charge hidden fees without prior disclosure.

3.

What was the main concern that prompted the RBI to introduce a new regulatory framework for digital lending?

A Lack of innovation in digital lending products.

B Issues related to unethical recovery practices, data privacy, and transparency.

C Slow growth of the digital lending sector.

D Excessive competition among traditional banks.

4.

According to RBI guidelines, who is primarily responsible for overseeing the implementation of cybersecurity frameworks within a bank?

A The Marketing Head.

B The Board of Directors.

C The Human Resources Department.

D The Branch Manager.

5.

Which of the following is NOT typically a component of enhanced cybersecurity measures mandated by RBI for banks?

A Implementation of multi-factor authentication.

B Regular security audits and penetration testing.

C Mandatory investment in cryptocurrency.

D Establishment of a robust incident response mechanism.

6.

What is the primary objective of the RBI's enhanced cybersecurity measures for banks?

A To reduce operational costs for banks.

B To protect customer data and ensure the resilience of banking systems against cyber threats.

C To promote digital marketing strategies for financial products.

D To standardize ATM operations across all banks.

Banking & Finance MCQs - 2026-07-02