MCQs on RBI Policy & Digital Lending Regulations (July 2026)

1.

Which entities are primarily covered under the RBI's digital lending guidelines?

A Only Non-Banking Financial Companies (NBFCs)

B Only Public Sector Banks

C All Regulated Entities (REs) including Banks and NBFCs

D Only private fintech startups

2.

What is the main purpose of the RBI's stricter norms for digital lending?

A To promote the use of cryptocurrency

B To protect customers from unethical recovery practices and data privacy issues

C To increase the number of digital lending apps in India

D To reduce the tax burden on fintech companies

3.

Under the new RBI digital lending guidelines, who is responsible for the repayment of loans?

A The Digital Lending App (DLA)

B The borrower directly to the Regulated Entity (RE)

C The payment gateway provider

D The third-party collection agency

4.

What happens when the RBI keeps the Repo Rate unchanged?

A Banks immediately increase interest rates on all loans

B The cost of borrowing for commercial banks from RBI remains the same

C The Cash Reserve Ratio (CRR) automatically decreases

D Foreign Direct Investment (FDI) is banned

5.

What is the primary objective of the RBI in maintaining the Repo Rate?

A To increase government spending

B To maintain price stability while keeping growth in mind

C To fix the exchange rate of the Rupee

D To regulate stock market volatility

6.

Which committee of the RBI is responsible for deciding the Repo Rate?

A Monetary Policy Committee (MPC)

B Financial Stability Committee

C Economic Advisory Council

D Banking Regulation Committee

Banking & Finance MCQs - 2026-07-03