Banking & Finance MCQs

1.

The 2026 RBI guidelines for Digital Lending Platforms emphasize data privacy. What is a key directive concerning borrower data?

A DLPs can collect and store any data they deem necessary for marketing purposes.

B DLPs must obtain explicit consent from borrowers before collecting any personal information and must not store data beyond what is necessary for legitimate purposes.

C Borrower data can be freely shared with third-party credit bureaus without borrower consent.

D DLPs are allowed to retain borrower data indefinitely for future reference.

2.

Under the 2026 RBI guidelines for Digital Lending Platforms, what is the stipulated period within which a borrower must receive a copy of the loan agreement and all relevant loan documents after loan closure?

A Within 7 days.

B Within 24 hours.

C Within 30 days.

D Immediately upon loan closure.

3.

In 2026, the RBI issued new guidelines for Digital Lending Platforms (DLPs). A key objective of these guidelines is to protect borrowers. Which of the following is NOT a requirement under these new guidelines?

A Ensuring all loan disbursals and repayments are executed only through bank accounts of the borrower and the regulated entity.

B Prohibiting the charging of pre-payment penalties on all digital loans.

C Providing a clear and comprehensive Key Fact Statement (KFS) to the borrower before the contract is signed.

D Ensuring that DLPs do not engage in any outsourcing arrangement for credit assessment or loan processing without explicit consent and disclosure.

4.

The RBI's 2026 cybersecurity framework emphasizes the importance of a robust incident response mechanism. What does this typically involve for banks?

A Ignoring minor security alerts to save resources.

B Developing and testing clear procedures for detecting, reporting, analyzing, and responding to cyber incidents.

C Outsourcing all cybersecurity functions to foreign companies.

D Reducing the frequency of security audits.

5.

As per the 2026 RBI cybersecurity framework, banks are required to conduct regular vulnerability assessments and penetration testing. What is the primary objective of these exercises?

A To increase the number of IT staff in banks.

B To identify and remediate potential security weaknesses before they can be exploited by attackers.

C To develop new mobile banking applications.

D To reduce the cost of IT infrastructure.

6.

In 2026, the Reserve Bank of India (RBI) announced enhanced cybersecurity guidelines for banks. Which of the following is a key focus area in these updated guidelines?

A Reducing the number of ATMs across the country.

B Strengthening the framework for managing third-party risks, especially cloud computing and critical IT infrastructure outsourcing.

C Mandating all transactions to be conducted only through physical branches.

D Limiting the use of digital payment methods to prevent cyber fraud.

Banking & Finance MCQs - 2026-09-09