Banking & Finance MCQs - 2026-07-09

The RBI guidelines on digital lending place a strong emphasis on data privacy. Digital lenders must obtain explicit consent from borrowers for all data collection, storage, and usage, clearly stating the purpose. They are also restricted from accessing mobile phone resources like contacts or call logs without explicit, informed consent.

A key requirement of the RBI's digital lending guidelines is transparency. DLAs must clearly disclose the name of the Regulated Entity (bank/NBFC) extending the loan, the Annual Percentage Rate (APR), and all associated fees and charges upfront to the borrower.

The RBI's digital lending guidelines, introduced in 2022, aim to protect borrowers from predatory lending, ensure transparency in loan terms, and establish a robust regulatory framework for digital lending activities, addressing concerns related to data privacy, unfair practices, and recovery methods.

The RBI's cybersecurity guidelines are primarily directed at regulated entities (REs) under its purview, which include commercial banks, cooperative banks, NBFCs, payment system operators, and other financial institutions that are part of the digital payment ecosystem, to ensure their compliance with security standards.

The RBI's cybersecurity framework, such as the Master Direction on Digital Payment Security Controls, strongly emphasizes robust fraud detection and prevention mechanisms, multi-factor authentication, data encryption, and secure system development to protect digital payment transactions.

The primary objective of RBI's enhanced cybersecurity framework is to safeguard the digital payment ecosystem by ensuring the security, resilience, and robustness of its infrastructure and transactions, thereby protecting consumers and maintaining public confidence.