Banking & Finance MCQs - 2026-08-15

While the RBI plays a crucial role in bank mergers and approvals, the final decision and approval for the name change and branding of a merged Public Sector Bank, especially concerning government ownership and policy, typically comes from the Ministry of Finance, Government of India.

A primary objective of merging Public Sector Banks is often to create larger, more robust entities that can achieve economies of scale, improve operational efficiency, reduce costs, and enhance their overall financial strength and competitiveness.

NEEDS_REVIEW

The RBI's framework mandates that Digital Lending Apps (DLAs) must retain borrower data for a minimum period of two years after the loan account is closed or the last repayment is made, whichever is later. This is to facilitate audits and address any potential grievances.

The 'One-Fit-All' principle in the RBI's digital lending framework aims to bring a standardized regulatory approach to all entities involved in digital lending, irrespective of their specific business models, to ensure a level playing field and consistent consumer protection.

The RBI's framework mandates that all Lending Service Providers (LSPs) that act as intermediaries and handle customer data must be registered with the RBI. However, the framework does not mandate registration for all LSPs, but rather those that perform specific functions or handle sensitive data. The other options are mandatory requirements.