Banking & Finance MCQs - 2026-09-08

The RBI's framework mandates that banks must conduct comprehensive due diligence, risk assessments, and continuous monitoring of third-party service providers, especially those handling sensitive data or critical IT functions, to mitigate supply chain cyber risks.

RBI guidelines emphasize strong governance, with the Board of Directors or a dedicated IT Strategy Committee of the Board being ultimately responsible for approving and overseeing the bank's cybersecurity policy and framework. The CISO reports to the Board/IT Committee.

The RBI's enhanced Cybersecurity Framework for Banks (CFB) and subsequent guidelines aim to strengthen the cyber resilience of banks and ensure effective cyber crisis management, thereby protecting financial systems from evolving cyber threats.

The RBI mandates a 'cooling-off period' during which borrowers can exit the loan by paying the principal and proportionate Annual Percentage Rate (APR) without any penalty. This period is intended to provide borrowers with a window to reconsider their decision.

The RBI guidelines state that the Regulated Entity (RE) must ensure that all fees, charges, etc., payable to LSPs are paid by the RE and not by the borrower directly. This ensures transparency and prevents LSPs from levying hidden charges.

The RBI's digital lending guidelines mandate that all loan disbursements and repayments must be executed directly between the borrower's bank account and the bank account of the Regulated Entity (RE) without any pass-through/pool account of the Lending Service Provider (LSP) or any third party.