MCQs on RBI Digital Lending, Cybersecurity, and Financial Inclusion

31.

Which of the following is a key tool used by the RBI during its monetary policy reviews to manage liquidity in the banking system?

A Fiscal Deficit Management

B Open Market Operations (OMOs)

C Government Debt Issuance

D International Trade Agreements

32.

During the mid-year monetary policy review in 2026, the RBI's Monetary Policy Committee (MPC) decided to keep the policy repo rate unchanged. What is the typical rationale behind such a decision?

A To signal a tightening of monetary policy

B To assess the impact of previous rate changes and current economic conditions

C To encourage immediate borrowing by commercial banks

D To reduce the cost of funds for the government

33.

In its mid-year monetary policy review for 2026, what was the primary objective stated by the Reserve Bank of India (RBI) regarding inflation management?

A To aggressively reduce inflation to below 2%

B To maintain inflation within the target range of 4% +/- 2%

C To allow inflation to rise to stimulate economic growth

D To focus solely on economic growth without considering inflation

34.

Under the RBI's Digital Lending Guidelines, 2022, what is a crucial principle regarding data collection by Lending Service Providers (LSPs) from borrowers?

A LSPs are permitted to collect all data available on the borrower's device for credit assessment.

B Data collection must be 'need-based' and with explicit prior consent of the borrower.

C Borrowers cannot revoke consent for data usage once granted.

D LSPs are not required to provide an audit trail of data collection.

35.

As per RBI's Digital Lending Guidelines, 2022, what is a mandatory requirement for the disbursement and repayment of loans facilitated by digital lending apps?

A Loans must be disbursed directly into the borrower's bank account and repayments collected directly by the Regulated Entity (RE).

B Lending Service Providers (LSPs) can disburse loans from their own accounts and collect repayments.

C Loans can be disbursed to any third-party account specified by the borrower.

D Repayments can be collected in cash by agents of the LSP.

36.

The Reserve Bank of India (RBI) introduced comprehensive guidelines for digital lending primarily to address which of the following concerns?

A To promote faster credit growth in the economy.

B To regulate unregulated digital lending platforms and protect borrowers from unethical practices.

C To encourage foreign investment in the FinTech sector.

D To standardize interest rates across all digital lenders.

37.

Under the enhanced cybersecurity framework for banks by RBI, what is a mandatory requirement for reporting significant cybersecurity incidents?

A Reporting to CERT-In within 24 hours.

B Reporting to RBI within 6 hours of detection.

C Reporting to the bank's internal IT security team only.

D Reporting to the customer after resolution.

38.

A key enhancement in RBI's cybersecurity framework for banks, as outlined in recent guidelines, emphasizes the critical role of which body in overseeing IT and cybersecurity risks?

A Internal Audit Department

B IT Department Head

C Board of Directors

D External Auditors

39.

Which Master Direction issued by the Reserve Bank of India (RBI) provides a comprehensive framework for IT Governance, Risk, Controls, and Assurance Practices for all Regulated Entities, including banks, as of 2026?

A Master Direction on Cybersecurity Framework for Banks, 2016

B Master Direction on Digital Payment Security, 2020

C Master Direction on IT Governance, Risk, Controls and Assurance Practices, 2023

D Master Direction on Data Localisation Norms, 2018

40.

NEEDS_REVIEW

A NEEDS_REVIEW

B NEEDS_REVIEW

C NEEDS_REVIEW

D NEEDS_REVIEW

Banking & Finance MCQs