Banking & Finance MCQs

The guidelines strictly state that data collection by LSPs must be 'need-based', with clear audit trails, and only with the explicit prior consent of the borrower. Borrowers must also have the option to revoke consent and delete data.

The guidelines mandate that all loan disbursements and repayments must be executed directly between the borrower's bank account and the Regulated Entity (RE) without any pass-through or pool account of the Lending Service Provider (LSP).

The RBI introduced digital lending guidelines in 2022 to mitigate concerns arising from the unregulated growth of digital lending, including predatory practices, data privacy issues, and unethical recovery methods, thereby protecting borrowers.

RBI's circular on 'Cyber Security Incident Reporting by Regulated Entities' mandates Regulated Entities to report all unusual and significant cyber incidents to RBI within 6 hours of detection.

RBI's enhanced cybersecurity framework, particularly the MD-ITGRCA 2023, significantly strengthens the role and responsibilities of the Board of Directors and senior management in overseeing IT and cybersecurity risks.

The Master Direction on IT Governance, Risk, Controls and Assurance Practices, 2023, issued by RBI, consolidates and updates previous guidelines, providing a comprehensive framework for IT and cybersecurity for all Regulated Entities.

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PMJDY remains the primary vehicle for ensuring universal access to banking services in rural India.

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