Banking & Finance MCQs - 2026-10-04

The Account Aggregator framework enables individuals to securely and digitally share their financial data (with consent) across different financial institutions. This helps in better credit assessment, personalized financial advice, and overall access to a wider range of financial services, thereby promoting inclusion.

The Regulatory Sandbox allows innovators to test new products and services in a live, controlled environment. This often leads to the development of innovative digital solutions that address financial inclusion challenges, such as low-cost payment systems or credit models for underserved populations.

UPI 123PAY was launched by the RBI to allow feature phone users to make UPI payments without an internet connection, significantly boosting financial inclusion for a large segment of the population who do not own smartphones.

The RBI mandated a cooling-off period during which borrowers can exit the loan by paying the principal amount without any penalty interest. This allows borrowers to reconsider their decision and ensures they are not coerced into taking loans.

The RBI permitted FLDG arrangements, subject to certain conditions, including that the FLDG cover provided by the LSP to the RE cannot exceed 5% of the underlying loan portfolio. This was aimed at balancing innovation with risk management.

The RBI mandated that loan disbursals and repayments must be executed directly between the borrower and the Regulated Entity (RE) without any pass-through account or pool account of the Lending Service Provider (LSP). This ensures transparency and accountability.