Banking & Finance MCQs

e-Rupee is a digital token representing legal tender issued by the RBI, while UPI is an interface that facilitates bank-to-bank transfers.

The e-Rupee is a Central Bank Digital Currency (CBDC), which is a digital form of currency notes issued by the RBI.

The Monetary Policy Committee (MPC) is a statutory body tasked with fixing the benchmark policy interest rate (repo rate) in India.

The primary objective of monetary policy is to maintain price stability while keeping in mind the objective of growth.

The Repo Rate remains the primary policy tool for the RBI to signal its monetary policy stance and manage liquidity.

The RBI's Digital Lending Guidelines strictly prohibit DLAs and REs from accessing mobile phone contacts, call logs, or media galleries of the borrower. They are only permitted to collect necessary data with explicit consent and ensure data security.

The Key Fact Statement (KFS) is a mandatory disclosure aimed at enhancing transparency. It provides a clear and concise summary of the loan terms, including the Annual Percentage Rate (APR), interest rate, fees, and other charges, enabling borrowers to make informed decisions.

The RBI's Digital Lending Guidelines mandate that all loan disbursals and repayments must be executed only between the borrower and the Regulated Entity's (RE) bank account, without any pass-through to a Lending Service Provider (LSP) or any third party. This ensures transparency and accountability.

The Monetary Policy Committee (MPC) consists of six members: three officials of the Reserve Bank of India and three external members nominated by the Central Government.

The Repo Rate is a key monetary policy instrument used by the RBI. It is the rate at which the RBI lends money to commercial banks against government securities, influencing liquidity and interest rates in the economy. Fiscal Deficit Targeting and GST are fiscal policy tools, while Public Debt Management is a separate function.