MCQs: Banking & Finance Current Affairs Oct 2026

1.

The RBI's pilot program for the retail version of the Digital Rupee (e₹-R) in October 2026 primarily involves which type of transaction?

A Wholesale transactions between financial institutions.

B Cross-border remittances.

C Person-to-person (P2P) and person-to-merchant (P2M) payments.

D Government bond trading.

2.

As of October 2026, which of the following is a key objective of the RBI's Digital Rupee initiative?

A To completely replace physical cash within the next two years.

B To enhance financial inclusion and reduce transaction costs.

C To facilitate international trade settlements exclusively.

D To introduce a new currency with a different exchange rate.

3.

What is the official name given by the RBI to India's Central Bank Digital Currency (CBDC)?

A Digital Rupee (e₹)

B e-Indian Rupee

C Digital Indian Currency

D e-Note

4.

Which of the following measures was NOT highlighted in the RBI's October 2026 monetary policy review regarding inflation management?

A Maintaining the target of 4% CPI inflation.

B Focus on supply-side measures to curb food inflation.

C Increasing the reverse repo rate to absorb liquidity.

D Continued vigilance on the evolving inflation outlook.

5.

In the October 2026 monetary policy statement, the RBI projected the GDP growth rate for FY 2026-27. What is this projected growth rate?

A 6.8%

B 7.0%

C 6.5%

D 7.2%

6.

As per the RBI's bi-monthly monetary policy review in October 2026, what is the current policy repo rate?

A 6.50%

B 6.75%

C 6.25%

D 6.00%

7.

Why is Multi-Factor Authentication (MFA) considered a crucial cybersecurity measure for banking transactions?

A It reduces transaction processing time.

B It eliminates the need for passwords entirely.

C It adds an extra layer of security by requiring multiple verification methods.

D It allows for anonymous transactions.

8.

Which of the following is a common social engineering cyber threat where attackers attempt to trick individuals into revealing sensitive information, often through deceptive emails or messages?

A DDoS Attack

B Ransomware

C Phishing

D SQL Injection

9.

Which framework issued by the RBI provides comprehensive guidelines for banks to manage and mitigate cyber risks?

A Payment and Settlement Systems Act, 2007

B Cyber Security Framework for Banks

C Banking Regulation Act, 1949

D Information Technology Act, 2000

10.

In the context of monetary policy, what does the Repo Rate signify?

A The rate at which commercial banks lend money to the RBI.

B The rate at which the RBI lends money to commercial banks for short-term needs.

C The rate at which commercial banks lend money to their customers.

D The rate at which the government borrows from the public.

Banking & Finance MCQs