Banking & Finance MCQs - 2026-08-29

India's UPI and Singapore's PayNow have been successfully linked, enabling instant, low-cost cross-border fund transfers between the two countries. This is a significant step in the internationalization of UPI.

The RBI has enabled the operation of pre-sanctioned credit lines through the UPI system, allowing banks to offer credit to customers which can be accessed and utilized directly via UPI, enhancing the convenience of digital credit.

UPI Lite is an on-device wallet feature introduced by NPCI that enables users to make small-value transactions (up to ₹500 per transaction, with a total limit of ₹2,000) without requiring a real-time internet connection or UPI PIN for every transaction, making it suitable for offline payments.

The RBI's digital lending guidelines apply to all Regulated Entities (REs) of the RBI (banks and NBFCs) and the Lending Service Providers (LSPs) engaged by them to extend digital credit.

A key provision of the RBI's digital lending guidelines mandates that the loan disbursement and repayment must be executed directly between the borrower's bank account and the Regulated Entity (RE) without any pass-through/pool account of the LSP.

The RBI's digital lending guidelines, initially issued in 2022, primarily aim to protect borrowers from predatory practices, enhance transparency in loan terms, and ensure fair practices by digital lenders. Any review would likely reinforce these core objectives.