RBI & Banking MCQs - July 2026 Current Affairs

51.

What is a key requirement for Regulated Entities (REs) and Lending Service Providers (LSPs) regarding data storage under RBI's cybersecurity framework for digital lending?

A All customer data must be stored exclusively on servers located within India.

B Data can be stored anywhere globally, provided it's encrypted.

C Only financial transaction data needs to be stored in India.

D Data storage location is at the discretion of the LSP.

52.

The increased adoption of Artificial Intelligence (AI) and Machine Learning (ML) in digital lending platforms by PSBs primarily aims to improve which aspect?

A Manual data entry

B Physical branch operations

C Credit risk assessment and fraud detection

D Cash handling efficiency

53.

Which of the following initiatives by the Indian government and RBI has significantly facilitated the expansion of digital lending by enabling paperless and presence-less verification?

A Goods and Services Tax (GST)

B Unified Payments Interface (UPI)

C Aadhaar-based e-KYC

D Production Linked Incentive (PLI) schemes

54.

What is a significant benefit for customers due to the expansion of digital lending platforms by Public Sector Banks (PSBs)?

A Requirement for more physical documents

B Slower loan processing time

C Increased accessibility and faster loan disbursement

D Higher interest rates on loans

55.

If the RBI adopts a 'hawkish' monetary policy stance, what is its primary concern and likely action?

A Boosting economic growth by lowering interest rates

B Controlling inflation by raising interest rates

C Encouraging exports through currency depreciation

D Reducing government borrowing

56.

Which of the following is a key quantitative tool used by the RBI to manage liquidity and influence short-term interest rates in the economy?

A Fiscal Deficit

B Repo Rate

C Export-Import Bank (EXIM Bank) operations

D Direct Tax Collection

57.

What is the primary objective of the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) in India?

A Promoting economic growth

B Ensuring price stability

C Maximizing employment

D Managing government debt

58.

What is the primary goal of the RBI in expanding the e-Rupee pilot program as of October 2026?

A To completely replace physical cash within a year.

B To assess the technological resilience and user experience of the e-Rupee.

C To exclusively facilitate government welfare schemes.

D To reduce the number of bank branches.

59.

The expanded pilot program for the e-Rupee in October 2026 aims to test which of the following aspects of the digital currency?

A Only wholesale transactions

B Only retail transactions

C Both wholesale and retail use cases

D International cross-border payments only

60.

As of October 2026, which of the following categories of banks have been included in the expanded pilot program for the Central Bank Digital Currency (CBDC), the e-Rupee?

A Only Public Sector Banks

B Only Private Sector Banks

C Both Public Sector and Private Sector Banks

D Only Small Finance Banks

Banking & Finance MCQs