MCQs on Banking & Finance Current Affairs (Sept 2026)

1.

Beyond asset quality, what other key factor is crucial for Public Sector Banks to sustain strong Q2 performance in 2026, reflecting overall economic health?

A Robust credit growth across various sectors, driven by economic expansion.

B A significant reduction in the number of bank branches and ATMs.

C Increased reliance on government subsidies for operational expenses.

D Diversification into non-banking financial services as their primary business.

2.

An increase in which of the following ratios would typically indicate an improvement in the asset quality of Public Sector Banks?

A Provision Coverage Ratio (PCR)

B Gross Non-Performing Assets (GNPA) Ratio

C Cost-to-Income Ratio

D Capital Adequacy Ratio (CAR)

3.

Which of the following factors is most likely to contribute significantly to the strong Q2 performance of Public Sector Banks (PSBs) in 2026?

A Sustained improvement in asset quality, leading to lower provisioning requirements.

B A sharp decline in Net Interest Margin (NIM) due to increased competition.

C Reduced focus on retail lending in favor of large corporate loans.

D Increased reliance on non-interest income from trading activities.

4.

Which of the following consumer protection measures is mandated by the RBI's digital lending framework, allowing borrowers a specific period to reconsider their loan?

A A mandatory 'cooling-off' or 'look-up' period during which borrowers can exit the loan by paying the principal and proportionate Annual Percentage Rate (APR) without penalty.

B A provision for automatic loan forgiveness if the borrower faces financial hardship within the first month.

C The right to transfer the loan to another digital lending platform without any processing fees.

D A guarantee that the interest rate will not increase for the entire loan tenure, regardless of market conditions.

5.

What is the primary responsibility of a Regulated Entity (RE) concerning Lending Service Providers (LSPs) under the RBI's digital lending framework?

A REs are solely responsible for all activities of LSPs engaged by them, including compliance with all regulatory guidelines.

B LSPs are independent entities and bear full responsibility for their own compliance and customer interactions.

C REs are only responsible for the financial solvency of LSPs, not their operational conduct.

D LSPs must obtain a separate license from the RBI to operate independently of REs.

6.

Which of the following is a mandatory requirement for loan disbursement under the RBI's framework for digital lending platforms, effective by 2026?

A Loans must be disbursed directly into the borrower's bank account by the Regulated Entity (RE).

B Lending Service Providers (LSPs) can disburse loans directly to the borrower's digital wallet.

C Borrowers can receive loans in cash from agents of the digital lending platform.

D The first installment of the loan can be adjusted against any outstanding dues with the LSP.

Banking & Finance MCQs - 2026-09-11