Which of the following mobile phone resources are digital lending apps *strictly prohibited* from accessing by RBI regulations, without any provision for specific need-based consent?
A Call logs and contacts.
B Camera and microphone.
C Location services.
D SMS messages.
Answer: A
RBI guidelines explicitly state that Digital Lending Apps (DLAs) shall not access mobile phone resources such as files and media, contact list, call logs, and telephony functions. Access to camera, microphone, location, or any other facility can be taken one-time with explicit consent for a specific use case, but call logs and contacts are strictly prohibited without such provision.
122.
Where are digital lenders mandated by the RBI to store all data collected from borrowers?
A Servers located within India.
B Servers in any country with robust data protection laws.
C Globally distributed cloud storage providers.
D Primarily on the borrower's personal device for enhanced security.
Answer: A
The RBI's digital lending guidelines mandate that all data collected by digital lending apps must be stored on servers located within India, ensuring data localization and compliance with domestic regulations.
123.
According to RBI's norms for digital lenders, what is a fundamental requirement for collecting a borrower's personal data?
A Explicit consent from the borrower for each specific data point.
B Implied consent based on the loan application submission.
C Automatic collection of all available data from the borrower's device.
D Third-party verification of data without direct borrower involvement.
Answer: A
The RBI mandates that digital lending apps must obtain explicit consent from borrowers for collecting any personal data, ensuring that data collection is need-based and transparent.
124.
What is the primary purpose of the 'cooling-off' or 'look-up' period mandated by the RBI for digital loans?
A To allow borrowers to exit the loan by repaying the principal without penalty within a specified period.
B To enable the lender to conduct a final verification of the borrower's credit score.
C To expedite the loan application processing time for urgent needs.
D To offer additional financial products or services to the borrower.
Answer: A
The 'cooling-off' or 'look-up' period allows borrowers to have a window (e.g., 1-3 days) to reconsider the loan and exit it by repaying the principal amount without any penalty, thereby protecting consumers from impulsive borrowing.
125.
As per RBI's enhanced digital lending norms, how should the loan disbursal and repayment ideally occur to ensure transparency and prevent unauthorized deductions?
A Directly between the Regulated Entity (RE) and the borrower's bank account, without any pass-through account.
B Via the Lending Service Provider's (LSP) bank account.
C Through a third-party payment gateway that may hold funds temporarily.
D Primarily through cash transactions for smaller loan amounts.
Answer: A
The RBI mandates that loan disbursals and repayments must be executed directly between the Regulated Entity (RE) and the borrower's bank account, without any involvement of a pass-through account of the Lending Service Provider (LSP) or any third party, to enhance transparency and accountability.
126.
Which mandatory document was introduced by the RBI for digital lenders to enhance transparency by providing a summary of loan terms and conditions to borrowers?
A Key Fact Statement (KFS)
B Know Your Customer (KYC) document
C Credit Information Report (CIR)
D Unified Payments Interface (UPI) mandate
Answer: A
The RBI mandated the introduction of a 'Key Fact Statement' (KFS) for all digital loans to ensure greater transparency for borrowers regarding the all-inclusive cost of the loan, tenure, and other terms.
127.
What is one of the primary long-term objectives of the RBI in introducing the Digital Rupee (CBDC)?
A To reduce the cost of currency management and enhance efficiency in the payment system.
B To replace all existing physical currency notes immediately.
C To facilitate anonymous cross-border transactions without regulatory oversight.
D To allow commercial banks to issue their own digital currencies.
Answer: A
One of the key objectives of introducing CBDC is to reduce the operational costs associated with managing physical currency, enhance the efficiency and security of the payment system, and provide an additional payment option. It is not intended to immediately replace all physical currency or facilitate unregulated transactions. Commercial banks will distribute CBDC, but not issue their own.
128.
Which of the following is a key challenge identified by the RBI in the widespread adoption of the retail Digital Rupee (e-βΉR) during its pilot phase?
A Low user awareness and limited merchant acceptance.
B Lack of underlying blockchain technology.
C Absence of a legal framework for CBDC.
D High transaction costs for users.
Answer: A
While the RBI has made progress, challenges in the widespread adoption of e-βΉR include low user awareness, limited merchant acceptance, and the need for seamless integration into existing payment ecosystems. The legal framework is being developed, and transaction costs are generally aimed to be low.
129.
When did the Reserve Bank of India (RBI) launch the pilot projects for the Digital Rupee (e-βΉ) for wholesale and retail segments, respectively?
A Wholesale: November 2022; Retail: December 2022
B Wholesale: January 2023; Retail: February 2023
C Wholesale: October 2021; Retail: November 2021
D Wholesale: March 2023; Retail: April 2023
Answer: A
The RBI launched the pilot for the wholesale segment of the Digital Rupee (e-βΉW) on November 1, 2022, and for the retail segment (e-βΉR) on December 1, 2022. These pilots are ongoing and their progress is being reviewed.
130.
As of 2026, what is the inflation target set by the Government of India for the Reserve Bank of India, which the MPC aims to achieve?
A 4% with a tolerance band of +/- 2%.
B 6% with a tolerance band of +/- 1%.
C 2% with no tolerance band.
D 5% with a tolerance band of +/- 0.5%.
Answer: A
The Government of India, in consultation with the RBI, has set a retail inflation target of 4% with a tolerance band of +/- 2% for the period from April 1, 2021, to March 31, 2026. This target is expected to be reviewed and potentially renewed or revised for the subsequent period, but as of 2026, this is the established target.
