Banking & Finance MCQs - RBI, MPC, Cybersecurity

151.

What specific measure does the RBI's enhanced cybersecurity framework emphasize regarding third-party service providers used by banks?

A Banks must avoid using any third-party service providers

B Banks must conduct thorough due diligence, risk assessment, and continuous monitoring of third-party service providers

C Third-party service providers are solely responsible for their own cybersecurity

D RBI directly audits all third-party service providers of banks

152.

According to RBI's enhanced cybersecurity guidelines, which body within a bank is primarily responsible for formulating and overseeing the implementation of the bank's cybersecurity policy?

A The IT Department Head

B The Chief Information Security Officer (CISO)

C The Board of Directors/IT Strategy Committee of the Board

D The Internal Audit Department

153.

The RBI's enhanced Cybersecurity Framework for Banks primarily aims to achieve which of the following?

A To standardize banking software across all banks

B To ensure robust cyber resilience and effective cyber crisis management in banks

C To mandate the use of specific antivirus software for all bank employees

D To centralize all IT infrastructure of public sector banks

154.

What is the purpose of the 'cooling-off period' or 'look-up period' introduced by the RBI in its digital lending guidelines?

A To allow borrowers to repay the loan early without penalty

B To provide borrowers with an option to exit the loan by paying the principal and proportionate annual percentage rate (APR) without penalty

C To enable LSPs to verify borrower's creditworthiness

D To allow REs to revise loan terms

155.

According to RBI's tightened norms for digital lending, who is primarily responsible for all fees, charges, etc., payable to Lending Service Providers (LSPs)?

A The borrower

B The Regulated Entity (RE)

C The Lending Service Provider (LSP)

D Both borrower and LSP

156.

Which of the following is a key norm introduced by the RBI for digital lending, mandating that the loan disbursement and repayment must be executed only between the borrower's bank account and the bank account of the Regulated Entity (RE)?

A Direct transfer to borrower's bank account

B Use of third-party wallets

C Cash disbursement

D Disbursement through Lending Service Providers (LSPs) directly

157.

The review of UPI transaction limits by the Ministry of Finance in 2026 is typically conducted in consultation with which key regulatory body?

A Securities and Exchange Board of India (SEBI)

B National Company Law Tribunal (NCLT)

C Reserve Bank of India (RBI)

D Insurance Regulatory and Development Authority of India (IRDAI)

158.

Which of the following is a potential outcome of the Finance Ministry's review of UPI transaction limits in 2026, aimed at promoting digital payments?

A A reduction in the number of merchants accepting UPI.

B Introduction of higher transaction limits for specific categories like education or healthcare.

C A complete ban on UPI transactions above ₹5,000.

D Mandatory use of biometric authentication for all UPI transactions.

159.

In early 2026, the Ministry of Finance conducted a review of UPI transaction limits. What is a primary reason for such periodic reviews?

A To completely phase out cash transactions in India.

B To ensure the UPI system remains secure, efficient, and aligned with evolving economic needs and user behaviour.

C To increase the transaction fees for all UPI users.

D To restrict UPI usage to only large businesses and corporations.

160.

Which entity is primarily responsible for overseeing and enforcing the RBI's enhanced digital lending transparency guidelines in India as of 2026?

A Securities and Exchange Board of India (SEBI)

B Reserve Bank of India (RBI)

C Ministry of Electronics and Information Technology (MeitY)

D National Payments Corporation of India (NPCI)