Banking & Finance MCQs

The primary mandate of the RBI's monetary policy is to maintain price stability (control inflation) and also to ensure adequate credit flow to support economic growth.

In recent policy reviews of 2026, the RBI has been maintaining a 'withdrawal of accommodation' stance to ensure inflation aligns with the target while supporting growth.

The primary aim of enhancing digital banking security is to safeguard bank customers from fraud, data breaches, and unauthorized access to their accounts.

Multi-factor authentication is a critical security measure to verify user identity, and new guidelines often focus on strengthening such protocols.

The new guidelines emphasize strengthening customer authentication processes, protecting sensitive data, and mitigating risks associated with digital transactions.

The primary objective of monetary policy, including the repo rate decision, is to maintain price stability while keeping in mind the objective of growth, and ensuring financial stability.

The Monetary Policy Committee (MPC) is mandated by the RBI Act to determine the policy repo rate required to meet the inflation target.

In its August 2026 policy review, the RBI's Monetary Policy Committee decided to keep the policy repo rate unchanged at 6.5%.

While KYC is crucial, the August 2026 guidelines focus on enhancing *digital* security. Mandatory KYC for physical branches only is not a direct digital security measure, though digital onboarding processes would have their own KYC requirements aligned with digital security.

The August 2026 RBI guidelines stress the importance of obtaining explicit and informed consent from customers before sharing their data with any third party, enhancing transparency and customer control.