MCQs on RBI Policies & Banking Reforms

1.

The expansion of Aadhaar-based e-KYC by the RBI in 2026 aims to reduce the 'last mile' challenge in financial inclusion. What does 'last mile' typically refer to in this context?

A The final step in a loan repayment process.

B Reaching unbanked and underbanked populations in remote or underserved areas.

C The final approval stage for a new financial product.

D The process of converting digital transactions to physical ones.

2.

Which of the following entities are typically authorized to perform Aadhaar-based e-KYC for financial services, following the RBI's 2026 expansion?

A Only large public sector banks.

B Only Non-Banking Financial Companies (NBFCs).

C Banks, NBFCs, and other entities regulated by the RBI.

D Only mobile network operators.

3.

In 2026, the RBI expanded the scope of Aadhaar-based e-KYC. What is the primary benefit of this expansion for financial inclusion?

A It increases the cost of opening bank accounts.

B It simplifies and speeds up the Know Your Customer (KYC) process for new customers.

C It restricts access to financial services for individuals without Aadhaar.

D It mandates the use of physical documents for all financial transactions.

4.

Which of the following is a mandatory requirement for Digital Lending Apps (DLAs) operating in India, as per the RBI's tightened norms effective from 2026?

A DLAs must obtain a separate banking license from the RBI.

B DLAs must disclose all their algorithms used for credit scoring.

C DLAs must have a clear agreement with a Regulated Entity (RE).

D DLAs must offer loans at an interest rate not exceeding the repo rate.

5.

As per the revised guidelines issued by the RBI in 2026 concerning digital lending, which entity is generally prohibited from holding customer data collected by the Digital Lending App (DLA)?

A The regulated entity (RE) itself.

B The Digital Lending App (DLA) or its outsourced partners.

C The borrower.

D The Reserve Bank of India.

6.

In 2026, the Reserve Bank of India (RBI) tightened norms for digital lending platforms. Which of the following was a key objective of these new regulations?

A To encourage the proliferation of unregulated lending apps.

B To protect borrowers from predatory lending practices and ensure transparency.

C To reduce the overall credit availability in the economy.

D To shift all lending activities to traditional brick-and-mortar banks.

Banking & Finance MCQs - 2026-10-21