RBI NBFC Reforms & Digital Lending MCQs

1.

Under the new RBI guidelines for Digital Lending Platforms effective in 2026, what is a crucial requirement concerning the recovery of loans?

A Recovery agents can use any means to recover loans, including harassment.

B DLPs must appoint a dedicated recovery team for each loan.

C Recovery agents must adhere to a predefined code of conduct and respect borrower privacy.

D DLPs can seize borrower assets without prior notice.

2.

The RBI's 2026 guidelines for Digital Lending Platforms also address the issue of outsourcing. What is a significant stipulation regarding outsourcing by DLPs?

A DLPs can outsource all their core functions without RBI approval.

B DLPs cannot outsource any customer-facing functions.

C DLPs must ensure that outsourced entities comply with RBI regulations.

D Outsourced entities are exempt from data privacy laws.

3.

In 2026, the RBI issued new guidelines for Digital Lending Platforms (DLPs) to ensure fair and transparent lending practices. Which of the following is a key requirement mandated by these guidelines?

A DLPs must only lend their own capital.

B All loan-related costs must be disclosed upfront to the borrower.

C DLPs are prohibited from collecting any borrower data.

D Loan agreements can be verbal.

4.

The enhanced regulatory measures for NBFCs in 2026 aim to bring them closer to the regulatory standards of banks. Which of the following is a specific area where increased regulatory scrutiny is expected for NBFCs?

A Marketing and advertising strategies.

B Corporate governance and risk management.

C Employee training and development programs.

D Branch network expansion.

5.

As part of the strengthened regulatory framework for NBFCs in 2026, the RBI has introduced a new classification for NBFCs based on their systemic importance. What is the highest tier in this classification?

A Base Layer

B Middle Layer

C Upper Layer

D Top Layer

6.

In 2026, the Reserve Bank of India (RBI) announced a significant strengthening of the Non-Banking Financial Company (NBFC) regulatory framework. Which of the following is a key objective of these new regulations?

A To reduce the number of NBFCs operating in the market.

B To enhance the resilience of the NBFC sector and protect depositors' interests.

C To encourage NBFCs to engage in speculative trading.

D To allow NBFCs to offer all services currently exclusive to banks.

Banking & Finance MCQs - 2026-10-11