RBI Digital Lending & Finance MCQs

1.

Considering the interest rate outlook in mid-2026, what is the likely implication for borrowers if the RBI maintains a status quo on its policy rates?

A Borrowing costs are expected to decrease significantly.

B Loan EMIs are likely to remain stable in the short term.

C Lenders will offer substantial discounts on interest rates.

D The demand for loans will likely surge due to lower rates.

2.

The RBI's Monetary Policy Committee (MPC) aims to keep inflation within a specific band. What is the mandated inflation target for the RBI, as per the current framework effective in 2026?

A 2% to 4%

B 3% to 7%

C 4% +/- 2%

D NEEDS_REVIEW

3.

In its monetary policy statement of mid-2026, the RBI maintained its policy repo rate. What was the primary reason cited by the RBI for its cautious stance on interest rates, given the prevailing inflation scenario?

A Sustained high inflation necessitating a tight monetary policy.

B Concerns about the global economic slowdown impacting domestic growth.

C Inflationary pressures remaining above the target, requiring continued vigilance.

D A need to boost credit growth by lowering borrowing costs.

4.

Which of the following was a key focus area for the Reserve Bank of India in the fiscal year 2025-26, as highlighted in its Annual Report?

A Aggressive reduction of the repo rate to stimulate economic growth.

B Strengthening regulatory oversight on fintech companies and digital lending.

C Phasing out of all digital payment systems by the end of the fiscal year.

D Reducing the banking sector's exposure to government securities.

5.

The Annual Report 2025-26 also discussed the RBI's foreign exchange reserves. What was the approximate level of India's foreign exchange reserves as of March 31, 2026, as stated in the report?

A Around USD 500 billion

B Around USD 650 billion

C Around USD 750 billion

D NEEDS_REVIEW

6.

The Reserve Bank of India's Annual Report for the fiscal year 2025-26, released in August 2026, highlighted significant trends in the Indian economy. Which of the following was a key observation regarding the banking sector's performance?

A A sharp decline in Non-Performing Assets (NPAs) across all public sector banks.

B Increased profitability and improved Capital Adequacy Ratio (CAR) for most banks.

C A significant contraction in credit growth due to heightened risk aversion.

D A substantial increase in the number of bank branches in rural areas.

7.

According to the RBI's 2026 Digital Lending Guidelines, what is the maximum tenure for a digital loan that can be disbursed without requiring additional regulatory approval?

A 6 months

B 12 months

C 24 months

D NEEDS_REVIEW

8.

The RBI's new Digital Lending Guidelines of 2026 emphasize the need for a clear outsourcing policy. Which of the following is a key requirement for outsourcing of any digital lending activity?

A The outsourcing entity must have a physical branch in every district.

B The regulated entity must retain full responsibility for the outsourced activity.

C The outsourced partner must be a subsidiary of the regulated entity.

D The outsourcing agreement must be for a minimum period of 10 years.

9.

As per the new Digital Lending Guidelines issued by the RBI in 2026, which of the following entities are NOT permitted to undertake digital lending activities?

A Scheduled Commercial Banks

B Non-Banking Financial Companies (NBFCs)

C Payment System Providers (PSPs) not regulated by RBI

D Small Finance Banks

Banking & Finance MCQs - 2026-07-11