As per the enhanced digital lending transparency guidelines by the RBI in 2026, which of the following is NOT mandated for Digital Lending Apps (DLAs) to disclose upfront to the borrower?
A All-in-cost of the loan, including all charges and fees.
B The name and full address of the lending institution.
C The penalty interest rate applicable on delayed payments, clearly stated.
D The specific algorithm used for credit scoring and loan approval.
Answer: D
The RBI's enhanced guidelines focus on transparency regarding loan costs, fees, and lender identity. While DLAs must be transparent about loan terms and charges, they are not required to disclose the proprietary credit scoring algorithms used for loan approval.
82.
What was the primary focus of the Reserve Bank of India's monetary policy during the period covered by the Annual Report 2025-26, as indicated in the report?
A Aggressively reducing interest rates to stimulate growth
B Maintaining price stability while supporting growth
C Focusing solely on controlling inflation
D Implementing quantitative easing measures
Answer: B
The RBI's Annual Report 2025-26 reiterated its commitment to its flexible inflation targeting framework, aiming to maintain price stability while ensuring that monetary policy actions adequately support economic growth.
83.
The RBI's Annual Report 2025-26 noted a significant improvement in which of the following economic indicators?
A Current Account Deficit
B Inflation Rate
C Unemployment Rate
D Fiscal Deficit
Answer: A
The report indicated a narrowing of the Current Account Deficit in 2025-26, attributed to a surge in services exports and a moderation in merchandise imports, contributing to macroeconomic stability.
84.
According to the RBI's Annual Report 2025-26, what was the projected GDP growth rate for India during the fiscal year 2025-26?
A 6.5%
B 7.2%
C 7.8%
D 8.1%
Answer: C
The RBI's Annual Report 2025-26 highlighted a robust economic performance, projecting a GDP growth rate of 7.8% for the fiscal year 2025-26, driven by strong domestic demand and improved manufacturing output.
85.
Under the revised digital lending framework effective from 2026, what is mandated regarding the outsourcing of any digital lending activity?
A Outsourcing is completely banned.
B Outsourcing is permitted only if the principal lender retains full responsibility.
C Outsourcing requires prior approval from the borrower.
D Outsourcing is allowed for all activities except loan disbursement.
Answer: B
The RBI's 2026 digital lending framework emphasizes that while outsourcing of certain digital lending activities is permitted, the regulated entity (e.g., bank or NBFC) must retain full responsibility for the entire lending process and customer grievance redressal.
86.
A key aspect of the RBI's updated digital lending guidelines in 2026 is the prohibition of which practice for digital lending entities?
A Charging interest rates above the repo rate
B Automatic top-up loans without explicit customer consent
C Disclosing customer data to third-party marketing agencies
D All of the above
Answer: D
The RBI's 2026 digital lending guidelines have strengthened consumer protection by prohibiting practices such as charging interest rates above the repo rate, offering automatic top-up loans without explicit customer consent, and disclosing customer data to third-party marketing agencies without consent.
87.
As per the recent enhancements to the digital lending framework by the RBI in 2026, which of the following entities are now permitted to undertake digital lending activities?
A Only Scheduled Commercial Banks and NBFCs
B Scheduled Commercial Banks, NBFCs, and Payment Aggregators
C Scheduled Commercial Banks, NBFCs, and entities with specific RBI approval
D Any entity registered with the Ministry of Corporate Affairs
Answer: C
The RBI's enhanced digital lending framework in 2026 permits Scheduled Commercial Banks and NBFCs to undertake digital lending. Additionally, other entities can engage in digital lending activities only with specific prior approval from the RBI, ensuring greater regulatory oversight.
88.
Beyond traditional banking metrics, what structural factor has consistently supported the improved performance of Public Sector Banks (PSBs) in recent years, including their strong Q1 2026 results?
A Decreased government equity infusion and support.
B Enhanced focus on digital transformation and governance reforms.
C A significant reduction in their branch network.
D Increased reliance on high-cost wholesale funding.
Answer: B
Government-led reforms in governance, consolidation of banks, and a strong push towards digital transformation have significantly improved the operational efficiency, customer service, and overall financial health of Public Sector Banks, contributing to their sustained strong performance.
89.
A key indicator of improved financial health for Public Sector Banks (PSBs) often cited in their strong performance reports, such as in Q1 2026, is:
A An increase in Gross Non-Performing Assets (GNPAs) ratio.
B A decrease in Provision Coverage Ratio (PCR).
C A reduction in Net Non-Performing Assets (NNPAs) ratio.
D Stagnant growth in deposits.
Answer: C
A reduction in the Net Non-Performing Assets (NNPAs) ratio signifies improved asset quality, as it indicates a lower proportion of bad loans after making provisions. This is a strong indicator of better financial health and contributes to strong performance.
90.
Which of the following factors is most likely to contribute significantly to the strong Q1 performance of Public Sector Banks (PSBs) in 2026?
A A substantial increase in Non-Performing Assets (NPAs).
B Robust credit growth coupled with improved asset quality.
C Significant decline in Net Interest Margins (NIMs).
D Reduced focus on retail lending.
Answer: B
Strong Q1 performance for PSBs is typically driven by robust credit growth, indicating increased lending activity, combined with improved asset quality, which means a reduction in bad loans and better recovery rates. This leads to higher profitability.
