MCQs: RBI Monetary Policy & Digital Lending

1.

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

A Collecting only necessary data with explicit consent from the borrower.

B Accessing mobile phone contacts, call logs, or media galleries of the borrower.

C Providing a clear privacy policy on their website/app.

D Ensuring data security and privacy of borrower information.

2.

The RBI's Digital Lending Guidelines mandate that a 'Key Fact Statement' (KFS) must be provided to the borrower before the execution of the loan contract. What is the primary purpose of the KFS?

A To obtain the borrower's consent for data sharing with third parties.

B To provide a summary of the loan terms, including interest rate, fees, and other charges, in a standardized format.

C To serve as a legally binding loan agreement.

D To collect additional personal information from the borrower for credit assessment.

3.

As per the RBI's Digital Lending Guidelines, what is a mandatory requirement for Regulated Entities (REs) regarding the disbursal and repayment of loans?

A All loan disbursals and repayments must be executed only between the borrower and the RE's bank account, without any pass-through to a Lending Service Provider (LSP) or any third party.

B REs can disburse loans through any third-party payment gateway for faster processing.

C LSPs are permitted to handle loan funds on behalf of REs for operational efficiency.

D Borrowers can choose to repay loans directly to the LSP's account.

4.

The Monetary Policy Committee (MPC) of the RBI consists of how many members?

A Five

B Six

C Seven

D Eight

5.

Which of the following is a key instrument used by the RBI to manage liquidity in the banking system under its monetary policy framework?

A Fiscal Deficit Targeting

B Repo Rate

C Goods and Services Tax (GST)

D Public Debt Management

6.

What is the primary objective of the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) as per its mandate?

A To maintain price stability while keeping in mind the objective of growth.

B To maximize government revenue through various financial instruments.

C To regulate the foreign exchange market to ensure a strong rupee.

D To promote financial inclusion by providing direct credit to the poor.

Banking & Finance MCQs - 2026-09-20