Banking & Finance MCQs

While the pilot program tested P2P and P2M for retail use (CBDC-R) and wholesale transactions (CBDC-W), cross-border payments were not a primary focus of the initial expansion in September 2026.

The expansion of the e-Rupee pilot program to more cities in September 2026 was aimed at testing the robustness, security, and user experience of the digital currency in diverse real-world scenarios and across a larger population.

The RBI's Monetary Policy Committee (MPC) meets at least four times a year, but typically convenes six times a year for its bi-monthly reviews, including the one in September 2026.

The RBI's September 2026 review emphasized the need to remain focused on the withdrawal of accommodation to ensure that inflation progressively aligns with the target while supporting growth.

As per the Monetary Policy Statement of September 2026, the RBI's Monetary Policy Committee (MPC) decided to keep the policy repo rate unchanged at 6.50%.

The guidelines mandate a 'cooling-off' or 'look-up' period during which borrowers can exit the loan by paying the principal and the proportionate Annual Percentage Rate (APR) without penalty.

The guidelines mandate that all loan disbursals and repayments must be executed only between the borrower and the Regulated Entity (RE) without any pass-through/pool account of the Lending Service Provider (LSP).

The Reserve Bank of India (RBI) issued the 'Guidelines on Digital Lending' in September 2022 to address concerns related to unregulated digital lending activities and protect borrowers.

The Repo Rate is the interest rate at which the Reserve Bank of India provides liquidity to commercial banks against government securities. It is the primary policy rate used by the MPC to influence monetary conditions.

The primary objective of the MPC is to maintain price stability while keeping in mind the objective of growth. The inflation target is set by the Government of India in consultation with the RBI.