Banking & Finance MCQs - 2026-08-31

To safeguard consumers, the RBI has emphasized the need for explicit consent from the cardholder before debiting their card for any interoperable card-to-card payment. This measure ensures that transactions are authorized and helps prevent fraud.

The RBI guidelines for interoperable card-to-card payments allow for transactions to be initiated through various digital channels, including mobile applications, internet banking platforms, and ATMs, providing flexibility and accessibility to users.

The RBI's new guidelines aim to facilitate interoperable card-to-card transactions, allowing users to send and receive money directly between cards across different networks (like Visa, Mastercard, RuPay). This expands payment options for both person-to-person (P2P) and person-to-merchant (P2M) transactions, enhancing convenience and reach.

The Key Fact Statement (KFS) provides borrowers with all essential information about the loan in a standardized format, ensuring transparency. The cooling-off/look-up period allows borrowers a window to reconsider and exit the loan without penalty, thereby protecting them from impulsive decisions and predatory practices.

To enhance transparency and prevent hidden charges on borrowers, the RBI guidelines stipulate that fees/charges payable to LSPs must be paid by the Regulated Entity (RE) and not directly by the borrower. This ensures that borrowers are aware of the actual cost of the loan from the RE.

The RBI's enhanced digital lending framework mandates that loan disbursal and repayment must be executed only between the borrower's bank account and the Regulated Entity (RE) directly, without any pass-through/pool account of the Lending Service Provider (LSP) or any third party. This ensures transparency and reduces the risk of unauthorized transactions.