The Reserve Bank of India (RBI) recently issued new guidelines in August 2026 to enhance digital banking security. Which of the following is a key focus area of these new guidelines?
A Reducing the number of ATMs across the country
B Mandating multi-factor authentication for all digital transactions
C Promoting the use of physical passbooks
D Limiting online banking hours to weekdays
Answer: B
The new RBI guidelines for enhanced digital banking security, issued in August 2026, emphasize strengthening authentication mechanisms, including mandating multi-factor authentication for a wider range of digital transactions to prevent unauthorized access.
172.
The decision to maintain the repo rate at 6.5% in August 2026 is primarily aimed at achieving which of the following objectives?
A Stimulating rapid economic growth at all costs
B Controlling inflation and ensuring price stability
C Reducing the fiscal deficit significantly
D Encouraging excessive borrowing by the government
Answer: B
The primary mandate of the RBI's monetary policy is to maintain price stability while keeping in mind the objective of growth. Maintaining the repo rate at 6.5% in August 2026 reflects a focus on controlling inflation.
173.
Which committee is responsible for deciding the policy repo rate in India?
A Financial Stability and Development Council (FSDC)
B Monetary Policy Committee (MPC)
C Securities and Exchange Board of India (SEBI) Board
D Reserve Bank of India Board
Answer: B
The Monetary Policy Committee (MPC) is mandated by the Reserve Bank of India Act, 1934, to determine the policy repo rate required to meet the inflation target.
174.
As per the RBI's Monetary Policy Committee (MPC) review in August 2026, what is the current Repo Rate?
A 6.25%
B 6.50%
C 6.75%
D 6.00%
Answer: B
The Reserve Bank of India's Monetary Policy Committee (MPC) decided in its August 2026 review to keep the policy repo rate unchanged at 6.5%.
175.
Which digital payment system has significantly boosted financial inclusion and transaction volumes in rural India by 2026, enabling instant, real-time payments?
A Real Time Gross Settlement (RTGS)
B National Electronic Funds Transfer (NEFT)
C Unified Payments Interface (UPI)
D Cheque Truncation System (CTS)
Answer: C
Unified Payments Interface (UPI) has revolutionized digital payments in India, offering instant, real-time transactions via mobile phones, making it highly accessible and popular in both urban and rural areas, thus significantly boosting financial inclusion.
176.
By 2026, what role do 'Business Correspondents' (BCs) primarily play in enhancing financial inclusion in rural and remote areas?
A They act as direct lenders, bypassing traditional banks.
B They provide last-mile banking services on behalf of banks, including account opening and transactions.
C They are responsible for setting RBI's monetary policy in rural areas.
D They exclusively offer insurance products without banking services.
Answer: B
Business Correspondents (BCs) are crucial for financial inclusion, acting as agents for banks to provide basic banking services, including account opening, deposits, withdrawals, and remittances, especially in unbanked and underbanked rural areas.
177.
Which government scheme, significantly contributing to increased rural financial penetration by 2026, focuses on providing universal access to banking facilities?
A Pradhan Mantri Fasal Bima Yojana (PMFBY)
B Pradhan Mantri Jan Dhan Yojana (PMJDY)
C Pradhan Mantri Awas Yojana (PMAY)
D Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)
Answer: B
Pradhan Mantri Jan Dhan Yojana (PMJDY), launched in 2014, is a national mission for financial inclusion, ensuring access to financial services like banking, savings, credit, insurance, and pension in an affordable manner, especially in rural areas.
178.
Under the RBI's digital lending guidelines, by 2026, who is primarily responsible for paying any fees or charges to Lending Service Providers (LSPs)?
A The borrower directly pays the LSP.
B The Regulated Entity (RE) pays the LSP.
C The government subsidizes the LSP fees.
D LSPs are prohibited from charging any fees.
Answer: B
The RBI guidelines clarify that fees/charges payable to Lending Service Providers (LSPs) must be paid by the Regulated Entity (RE) and not by the borrower directly.
179.
What is a mandatory document that digital lending platforms, operating under RBI guidelines by 2026, must provide to borrowers before loan execution?
A A detailed marketing brochure of the platform.
B A 'Key Fact Statement' (KFS) containing all essential loan terms.
C A list of all previous borrowers of the platform.
D A certificate of no objection from other banks.
Answer: B
The RBI guidelines explicitly require Regulated Entities (REs) to provide a 'Key Fact Statement' (KFS) to the borrower before the execution of the loan contract, detailing all terms and conditions transparently.
180.
As per the RBI's guidelines for digital lending platforms, effective by 2026, how must the loan disbursal and repayment be executed?
A Through a pool account managed by the Lending Service Provider (LSP).
B Directly between the borrower and the Regulated Entity (RE) without any pass-through of LSP.
C Via a third-party escrow account not linked to the RE.
D In cash, directly from the LSP to the borrower.
Answer: B
The RBI mandates that all loan disbursals and repayments must be executed only between the borrower and the Regulated Entity (RE) directly, without any pass-through or pool account of the Lending Service Provider (LSP).
