RBI Digital Lending & Cybersecurity MCQs

1.

To further financial inclusion through digital channels, RBI has been encouraging the adoption of which technology that enables bank customers to perform basic banking transactions using their Aadhaar number and biometric authentication?

A Near Field Communication (NFC)

B Aadhaar Enabled Payment System (AEPS)

C Blockchain Technology

D Magnetic Stripe Cards

2.

The Pradhan Mantri Jan Dhan Yojana (PMJDY), a flagship financial inclusion program, primarily aims to provide access to which of the following for every household?

A Only credit cards and personal loans.

B Basic savings bank accounts, access to credit, insurance, and pension facilities.

C Exclusive access to stock market investments.

D Only digital wallets and prepaid cards.

3.

Which of the following digital payment systems, widely promoted by the RBI for financial inclusion, allows users to make instant payments using a virtual payment address (VPA)?

A National Electronic Funds Transfer (NEFT)

B Real Time Gross Settlement (RTGS)

C Unified Payments Interface (UPI)

D Immediate Payment Service (IMPS)

4.

Which of the following is a critical component of RBI's cybersecurity framework aimed at ensuring the resilience of banking operations against cyber-attacks?

A Mandatory annual physical security audits only.

B Implementation of a robust Cyber Crisis Management Plan (CCMP).

C Exclusive reliance on third-party security vendors for all operations.

D Disabling multi-factor authentication for internal systems to improve efficiency.

5.

What is the mandatory reporting timeline for banks to inform the RBI about any significant cyber incident, as per the latest guidelines?

A Within 72 hours of detection.

B Within 6 hours of detection.

C Within 24 hours of detection.

D Within 48 hours of detection.

6.

As per RBI's cybersecurity framework for banks, which committee is primarily responsible for overseeing the implementation of the Information Security Policy and ensuring its effectiveness?

A Audit Committee of the Board (ACB)

B IT Strategy Committee

C Information Security Committee

D Risk Management Committee

7.

Which of the following practices is strictly prohibited for Regulated Entities (REs) under the RBI's Digital Lending Guidelines?

A Disclosing the Annual Percentage Rate (APR) to the borrower.

B Providing a detailed Key Fact Statement (KFS) to the borrower.

C Automatically increasing a borrower's credit limit without explicit consent.

D Ensuring a robust grievance redressal mechanism.

8.

What is the primary purpose of the 'cooling-off' or 'look-up' period mandated by the RBI for digital loans?

A To allow borrowers to negotiate a lower interest rate.

B To provide borrowers with an option to exit the loan by paying the principal and proportionate APR without penalty.

C To enable lenders to conduct additional background checks on borrowers.

D To facilitate the transfer of loan funds to the borrower's account.

9.

According to the RBI's Digital Lending Guidelines, which of the following statements regarding loan disbursement and repayment is correct?

A All loan disbursements and repayments must be executed only between the borrower's bank account and the Regulated Entity's (RE) bank account.

B Lending Service Providers (LSPs) are permitted to use their pool accounts for temporary holding of funds.

C Loan disbursements can be made to any third-party account specified by the borrower.

D Repayments can be collected by LSPs directly from the borrower's digital wallet.

Banking & Finance MCQs - 2026-09-15