Banking & Finance MCQs

The primary objective of the RBI's monetary policy is to maintain price stability while keeping in mind the objective of growth.

The Monetary Policy Committee (MPC) is a statutory body under the RBI Act, 1934, responsible for fixing the benchmark interest rate in India.

The framework covers all Regulated Entities (REs) of the RBI (banks and NBFCs) and Lending Service Providers (LSPs) engaged by them to extend digital lending, ensuring a comprehensive regulatory oversight.

A key provision of the new framework mandates 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 to Lending Service Providers (LSPs).

The RBI introduced the new framework primarily to address concerns arising from the unchecked growth of digital lending, including unethical recovery practices, data privacy breaches, and lack of transparency in loan terms.

The Board of Directors holds the ultimate responsibility for establishing and overseeing the cybersecurity policy and framework within a bank, ensuring its effective implementation and adherence to regulatory guidelines.

RBI's cybersecurity mandates focus on security protocols, audits, and incident response, not on mandatory investment in cryptocurrencies, which are subject to separate regulatory considerations.

The primary objective of RBI's enhanced cybersecurity measures is to safeguard customer data, protect financial transactions, and ensure the robust resilience of banking systems against evolving cyber threats.

Regulatory bodies issue directives, guidelines, and standards to ensure that banks implement adequate cybersecurity measures to protect their systems and customer data.

Banks employ a combination of technical and procedural measures, including MFA, regular updates, and employee training, to build a robust cybersecurity posture.