Banking & Finance MCQs - RBI, MPC, Cybersecurity

91.

Which instrument is used by the RBI to absorb liquidity from the banking system?

A Marginal Standing Facility (MSF)

B Reverse Repo Rate

C Bank Rate

D Cash Reserve Ratio (CRR)

92.

What is the primary objective of the RBI's monetary policy framework in India?

A Maintaining price stability while keeping in mind the objective of growth

B Maximizing the profit of commercial banks

C Regulating the stock market indices

D Directly funding government infrastructure projects

93.

As of early 2026, which committee is responsible for determining the Policy Repo Rate in India?

A Financial Stability and Development Council

B Monetary Policy Committee (MPC)

C Economic Advisory Council

D Public Debt Management Cell

94.

What is a key requirement under RBI's Digital Lending Guidelines concerning data privacy and usage by Lending Service Providers (LSPs)?

A LSPs are permitted to access all data on a borrower's mobile phone, including contacts and call logs, without explicit consent.

B LSPs must obtain explicit consent from borrowers for specific data usage and restrict access to only essential data relevant to the loan product.

C LSPs are not required to have a publicly available data privacy policy.

D Data collected by LSPs can be shared freely with any third party for marketing and cross-selling purposes.

95.

Which of the following consumer protection measures was introduced by RBI in its Digital Lending Guidelines to allow borrowers time to reconsider their loan decision?

A Allowing lenders to charge unlimited processing fees.

B Mandating a 'cooling-off' or 'look-up' period for borrowers.

C Removing the need for a dedicated grievance redressal officer.

D Permitting automatic increase in interest rates without prior notice to the borrower.

96.

As per RBI's Digital Lending Guidelines, what is a mandatory requirement regarding the disbursal of loans by Regulated Entities (REs) or through Lending Service Providers (LSPs)?

A Loans must be disbursed through a pool account managed by the LSP.

B Loans must be disbursed directly into the borrower's bank account without any intermediation.

C Loans can be disbursed in cash at the discretion of the LSP.

D Loans must be disbursed to the bank account of the Lending Service Provider first.

97.

What is the overarching objective behind RBI's continuous efforts to strengthen the cybersecurity framework for the Indian banking sector?

A To promote the use of cash transactions over digital payments.

B To reduce the operational costs associated with IT infrastructure for banks.

C To ensure the resilience, stability, and integrity of the financial system against evolving cyber threats.

D To encourage banks to invest solely in physical security measures.

98.

Under RBI's strengthened cybersecurity framework for banks, what is a mandatory requirement for effective cyber incident response?

A Outsourcing all incident response activities to international agencies.

B Establishing a dedicated Cyber Crisis Management Team (CCMT) with defined roles and responsibilities.

C Reporting cyber incidents only to the bank's internal audit committee.

D Limiting incident reporting to only those incidents resulting in financial loss exceeding INR 100 crore.

99.

What is a recent key focus area for RBI in strengthening the cybersecurity framework for banks, particularly concerning external dependencies?

A Mandating daily physical security audits for all branches.

B Enhancing third-party vendor risk management for IT services.

C Reducing the frequency of cyber incident reporting by banks.

D Eliminating the need for Chief Information Security Officer (CISO) appointments.

100.

Which technology is primarily used to support the Digital Rupee (e-Rupee) infrastructure?

A Distributed Ledger Technology (DLT)

B Artificial Intelligence

C Cloud Computing only

D Traditional SQL Databases