MCQs on RBI Digital Lending, Cybersecurity, and Financial Inclusion

11.

What is the primary purpose of the 'Digital Banking Units' (DBUs) established across India?

A To replace all physical bank branches

B To provide digital banking products and services in underserved areas

C To manage the national currency printing

D To regulate stock market transactions

12.

Which initiative was launched by the RBI to facilitate frictionless credit flow through digital means?

A Public Tech Platform for Frictionless Credit (PTPFC)

B Digital Rupee Initiative

C Unified Lending Interface (ULI)

D Bharat Bill Payment System

13.

What is the current Standing Deposit Facility (SDF) rate as per the latest MPC review?

A 6.25%

B 6.40%

C 6.15%

D 6.50%

14.

Which of the following is the primary objective of the RBI's current 'Withdrawal of Accommodation' stance?

A To increase liquidity in the market

B To align inflation to the 4% target

C To reduce the CRR for all banks

D To promote export-oriented lending

15.

As of the latest RBI Monetary Policy Committee (MPC) meeting in 2026, what is the status of the Repo Rate?

A 6.50%

B 6.25%

C 6.75%

D 6.00%

16.

As part of its focus on cybersecurity, the RBI in 2026 has been promoting the adoption of advanced security technologies. Which of the following technologies is increasingly being recommended for enhanced data protection and threat detection in the banking sector?

A Basic antivirus software only.

B Artificial Intelligence (AI) and Machine Learning (ML) for anomaly detection and predictive analytics.

C Manual log review without any automation.

D Simple password policies without complexity requirements.

17.

The RBI's cybersecurity initiatives in 2026 also focus on incident response. What is a critical component of an effective cyber incident response plan for banks?

A Delaying the reporting of incidents to avoid panic.

B Establishing clear communication channels and protocols for timely reporting and escalation.

C Solely relying on external cybersecurity firms for all response actions.

D Focusing only on technical recovery and ignoring legal and reputational aspects.

18.

In 2026, the Reserve Bank of India (RBI) has emphasized the need for banks to implement robust cybersecurity measures. Which of the following is a key recommendation by the RBI to strengthen the banking sector's defense against cyber threats?

A Reducing the number of ATMs to minimize potential attack vectors.

B Mandating the use of multi-factor authentication (MFA) for all customer transactions and internal access.

C Limiting online banking services to specific hours of the day.

D Prohibiting the use of cloud computing by banks.

19.

In the context of the RBI's strengthened digital lending framework (2026), what does 'all-inclusive interest rate' refer to?

A The interest rate charged only on the principal amount.

B The total cost of credit, including all fees and charges, presented as an annual percentage rate.

C The interest rate applicable only to digital loans above a certain threshold.

D A rate that includes a fixed component and a variable component.

20.

According to the RBI's 2026 digital lending framework, what is the maximum period for which a digital lending entity can outsource certain functions, provided it does not outsource the core decision-making process?

A 6 months

B 1 year

C 2 years

D No specific time limit, as long as core functions are retained.

Banking & Finance MCQs