MCQs on Banking & Finance Current Affairs

1.

The launch of digital lending platforms by Public Sector Banks is primarily aimed at achieving which of the following broader objectives in the Indian financial sector?

A Reducing the overall number of bank branches across the country.

B Enhancing financial inclusion by reaching underserved populations and improving access to credit.

C Shifting all banking operations exclusively to digital channels.

D Increasing reliance on cash transactions for small loans.

2.

Which technology is most crucial for the secure and efficient operation of a modern digital lending platform, especially concerning identity verification and fraud prevention?

A Traditional paper-based record keeping

B Blockchain technology for immutable transaction records

C Artificial Intelligence (AI) and Machine Learning (ML) for data analysis and risk assessment

D Manual data entry by bank staff

3.

What is a key advantage for customers when a Public Sector Bank launches a new digital lending platform?

A Requirement for more physical documentation and branch visits.

B Slower loan processing times due to digital verification.

C Enhanced convenience, faster application, and quicker disbursal of loans.

D Higher interest rates compared to traditional lending methods.

4.

If the RBI decides to increase the Repo Rate, what is the likely immediate impact on the economy?

A It will encourage banks to lend more, leading to higher economic growth.

B It will make borrowing more expensive for commercial banks, potentially leading to higher lending rates for consumers and businesses.

C It will directly increase the disposable income of individuals.

D It will lead to a decrease in the value of the Indian Rupee against major currencies.

5.

Which of the following policy rates is the rate at which commercial banks borrow money from the RBI for a short term against the pledge of government securities?

A Bank Rate

B Marginal Standing Facility (MSF) Rate

C Repo Rate

D Reverse Repo Rate

6.

What is the primary objective of the Reserve Bank of India's (RBI) monetary policy, which often involves adjusting key policy rates?

A Maximizing government revenue

B Ensuring price stability and supporting economic growth

C Promoting competition among commercial banks

D Managing foreign exchange reserves exclusively

Banking & Finance MCQs - 2026-09-24