Banking & Finance MCQs: RBI, Digital Initiatives (July 2026)

11.

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.

12.

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)

13.

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.

14.

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.

15.

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.

16.

The RBI's expanded digital lending guidelines have introduced stricter norms for outsourcing. What is a key requirement for regulated entities when outsourcing digital lending activities?

A Outsourcing is completely banned for all digital lending activities.

B The regulated entity must retain full control and oversight of the outsourced activity.

C The outsourcing agreement can be verbal.

D The third-party vendor must be a bank.

17.

Under the expanded digital lending guidelines, what is the role of the 'Digital Lending App' (DLA) in relation to the regulated entity (RE)?

A The DLA can operate independently without any oversight from the RE.

B The DLA must be owned and operated by the regulated entity.

C The DLA must clearly disclose that it is acting on behalf of the RE.

D The DLA is solely responsible for all credit risk.

18.

The RBI's expanded digital lending guidelines, effective from late 2025, aim to enhance customer protection. Which of the following is NOT a key provision under these guidelines?

A Mandatory upfront disclosure of all charges and fees to the borrower.

B Prohibition of automatic increase in credit limit without borrower's explicit consent.

C Allowing lending service providers (LSPs) to hold customer data indefinitely.

D Requirement for a cooling-off period for loan cancellation.

19.

Which of the following is a key objective highlighted by the RBI in its Mid-Year Monetary Policy Review for FY27, alongside maintaining price stability?

A Aggressively reducing the fiscal deficit.

B Promoting financial inclusion and digital payments.

C Implementing capital controls to manage exchange rates.

D Encouraging outward foreign direct investment.

20.

In the Mid-Year Monetary Policy Review for FY27, the RBI's Monetary Policy Committee (MPC) decided to keep the policy repo rate unchanged. What is the current policy repo rate?

A 5.90%

B 6.15%

C 6.50%

D 6.75%