Banking & Finance MCQs - 2026-10-19

An incident response plan is designed to provide a structured approach to managing the aftermath of a cyberattack, minimizing damage, restoring services, and learning from the event to improve future defenses.

Regular penetration testing and vulnerability assessments are crucial for identifying and rectifying security weaknesses in a bank's IT infrastructure before they can be exploited by malicious actors.

The increasing volume and complexity of cyberattacks, including data breaches and ransomware, necessitate continuous strengthening of cybersecurity measures by banks to protect customer data and financial systems.

The RBI mandates that the total cost of the loan, encompassing all fees, charges, and interest rates, must be clearly communicated to the borrower upfront, ensuring transparency and preventing hidden costs.

The RBI's framework mandates that only entities regulated by the RBI or other financial sector regulators, and holding a valid lending license, can offer loans. Entities without such authorization are prohibited from direct lending.

The RBI's enhanced digital lending framework primarily aims to bring more transparency, fairness, and consumer protection into the digital lending ecosystem, addressing concerns about predatory lending and data privacy.