Banking & Finance MCQs - RBI, MPC, Cybersecurity

131.

Which of the following is a key quantitative instrument used by the RBI to manage liquidity in the banking system?

A Moral Suasion

B Repo Rate

C Selective Credit Control

D Direct Action

132.

What is the primary objective of the Monetary Policy Committee (MPC) of the RBI?

A Price stability

B Economic growth

C Exchange rate management

D Financial inclusion

133.

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.

134.

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)

135.

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.

136.

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.

137.

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.

138.

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.

139.

What is the current legal status of the Digital Rupee (e-INR) in India as of September 2026?

A It is a legal tender for all transactions, replacing physical cash.

B It is a pilot project and not yet a legal tender for general circulation.

C It is only used for government transactions.

D It is a private cryptocurrency regulated by the RBI.

140.

Which of the following is a key benefit of the Digital Rupee (CBDC) as envisioned by the Reserve Bank of India?

A Elimination of all commercial banks

B Increased transaction costs for consumers

C Enhanced efficiency and reduced costs in payment systems

D Complete anonymity for all transactions