Banking & Finance MCQs: RBI and Financial Regulations (Sept 2026)

1.

A review of the PCA framework for UCBs by the Finance Ministry in 2026 might consider changes to which of the following aspects?

A The types of permissible investments for UCBs.

B The thresholds for key financial indicators that trigger PCA.

C The maximum interest rate UCBs can charge on loans.

D The number of branches a UCB can open annually.

2.

Which regulatory body is primarily responsible for implementing and overseeing the PCA framework for Urban Cooperative Banks in India?

A Securities and Exchange Board of India (SEBI)

B Reserve Bank of India (RBI)

C National Bank for Agriculture and Rural Development (NABARD)

D Insurance Regulatory and Development Authority of India (IRDAI)

3.

In 2026, the Ministry of Finance conducted a review of the Prompt Corrective Action (PCA) framework for Urban Cooperative Banks (UCBs). What is the primary objective of the PCA framework?

A To encourage UCBs to engage in riskier lending practices.

B To provide financial assistance to UCBs facing liquidity issues.

C To monitor and address financial vulnerabilities of UCBs before they become critical.

D To merge all UCBs into a single national cooperative bank.

4.

Under the 2026 RBI digital lending framework, what is a crucial requirement for Digital Lending Apps (DLAs) and their partners?

A They must obtain a banking license from the RBI.

B They must disclose their data privacy policy and the list of their partners.

C They are prohibited from collecting any borrower data.

D They must offer loans only at zero interest rates.

5.

As per the 2026 RBI guidelines on digital lending, what is mandated for all loan disbursals and repayments?

A They must be processed through a bank's escrow account.

B They can be directly handled by the digital lending app's own payment gateway.

C They must be routed through a bank account of the borrower, not the lender.

D They are permitted to be conducted in cash.

6.

In 2026, the Reserve Bank of India (RBI) issued new guidelines for digital lending to enhance transparency. Which of the following is a key objective of these guidelines?

A To restrict the number of digital lending apps available to consumers.

B To ensure all digital lending activities are conducted by Non-Banking Financial Companies (NBFCs) only.

C To protect borrowers' interests by mandating clear disclosure of all charges and fees.

D To promote the use of cryptocurrency for digital lending.

Banking & Finance MCQs - 2026-09-14