Banking & Finance MCQs - 2026-07-08

RBI guidelines explicitly state that Digital Lending Apps (DLAs) shall not access mobile phone resources such as files and media, contact list, call logs, and telephony functions. Access to camera, microphone, location, or any other facility can be taken one-time with explicit consent for a specific use case, but call logs and contacts are strictly prohibited without such provision.

The RBI's digital lending guidelines mandate that all data collected by digital lending apps must be stored on servers located within India, ensuring data localization and compliance with domestic regulations.

The RBI mandates that digital lending apps must obtain explicit consent from borrowers for collecting any personal data, ensuring that data collection is need-based and transparent.

The 'cooling-off' or 'look-up' period allows borrowers to have a window (e.g., 1-3 days) to reconsider the loan and exit it by repaying the principal amount without any penalty, thereby protecting consumers from impulsive borrowing.

The RBI mandates that loan disbursals and repayments must be executed directly between the Regulated Entity (RE) and the borrower's bank account, without any involvement of a pass-through account of the Lending Service Provider (LSP) or any third party, to enhance transparency and accountability.

The RBI mandated the introduction of a 'Key Fact Statement' (KFS) for all digital loans to ensure greater transparency for borrowers regarding the all-inclusive cost of the loan, tenure, and other terms.