Banking & Finance MCQs - July 2026 Current Affairs

1.

To further deepen financial inclusion, the RBI has been exploring and promoting solutions for offline digital payments. What is the primary benefit of such solutions?

A They eliminate the need for bank accounts for transactions.

B They enable digital transactions in areas with poor or no internet connectivity.

C They provide higher interest rates on savings accounts.

D They are exclusively designed for international remittances.

2.

The RBI often utilizes a 'Regulatory Sandbox' for financial innovations. How does this initiative primarily contribute to enhancing financial inclusion?

A By providing direct financial grants to financially excluded individuals.

B By allowing regulated entities to test new products and services in a controlled environment, potentially leading to innovative solutions for underserved populations.

C By mandating all banks to open branches in remote rural areas.

D By directly developing and launching new digital payment apps for the public.

3.

Which digital payment system, widely promoted by the RBI, has significantly contributed to financial inclusion by enabling instant real-time payments through mobile applications?

A Real Time Gross Settlement (RTGS)

B National Electronic Funds Transfer (NEFT)

C Unified Payments Interface (UPI)

D Cheque Truncation System (CTS)

4.

Under the RBI's regulatory framework for digital lending, which entities are permitted to undertake lending activities?

A Only Lending Service Providers (LSPs) registered with the Ministry of Corporate Affairs.

B Only Regulated Entities (REs) such as banks and NBFCs, either directly or through LSPs.

C Any technology company with a robust digital platform.

D Foreign entities without any local registration, provided they partner with an Indian tech firm.

5.

According to RBI's tightened norms for digital lending, what is the primary purpose of the 'Key Fact Statement' (KFS) that must be provided to the borrower?

A To serve as a marketing brochure for other financial products.

B To provide a summary of the loan terms, including the all-inclusive cost, before loan execution.

C To act as a legal waiver for the Regulated Entity in case of default.

D To collect additional personal data from the borrower for future offers.

6.

Which of the following is a key norm introduced by the RBI for digital lending platforms to ensure transparency and direct accountability?

A Loan disbursal and repayment must be executed only between the borrower and the Regulated Entity (RE) directly.

B Lending Service Providers (LSPs) are allowed to disburse loans on behalf of Regulated Entities.

C Borrowers can directly pay fees to Lending Service Providers for their services.

D Digital lending platforms are exempt from providing a Key Fact Statement (KFS) for small-value loans.

Banking & Finance MCQs - 2026-07-24