RBI Digital Banking & Financial Inclusion MCQs

1.

Which of the following is a key proactive measure mandated by the RBI for banks to strengthen their cybersecurity posture?

A Outsourcing all cybersecurity functions to third-party vendors.

B Conducting regular cybersecurity audits, including vulnerability assessments and penetration testing.

C Relying solely on antivirus software for protection against all threats.

D Limiting employee access to the internet to prevent cyberattacks.

2.

What is a mandatory requirement for banks regarding cyber incidents as per RBI's cybersecurity guidelines?

A Banks must report only major financial losses due to cyberattacks to the RBI.

B Banks are required to report all significant cyber incidents to the RBI within a stipulated timeframe.

C Banks should only report cyber incidents if customer data is compromised.

D Banks are encouraged to report cyber incidents to CERT-In, but not necessarily to the RBI.

3.

As per the RBI's guidelines on cybersecurity in banks, who is primarily responsible for formulating and implementing a comprehensive cybersecurity policy?

A The Chief Information Security Officer (CISO) alone.

B The IT Department in consultation with external consultants.

C The Board of Directors of the bank.

D The Reserve Bank of India's Department of Supervision.

4.

What is the primary purpose of the 'Key Fact Statement (KFS)' and the 'cooling-off period' mandated by the RBI's digital lending framework?

A To allow lenders to charge higher interest rates for short-term loans.

B To ensure transparency in loan terms and provide borrowers with an option to exit the loan.

C To enable Lending Service Providers (LSPs) to manage loan portfolios more efficiently.

D To facilitate faster loan processing and instant disbursal.

5.

Which of the following data access practices is strictly prohibited for digital lending apps as per the RBI's enhanced framework?

A Accessing device location for fraud prevention.

B Accessing camera for KYC verification.

C Accessing mobile phone contacts, call logs, or media galleries.

D Accessing microphone for voice-based authentication.

6.

As per the RBI's enhanced digital lending framework, which of the following is a mandatory requirement for loan disbursal and repayment?

A Loans must be disbursed by Lending Service Providers (LSPs) into the borrower's bank account.

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

C Loans can be disbursed into a digital wallet and repayments collected via an LSP's account.

D Loans can be disbursed by any third-party agent, provided they are registered with the RBI.

Banking & Finance MCQs - 2026-08-08