Banking & Finance MCQs - Oct 30, 2026

1.

Beyond technological solutions, what human-centric approach is crucial for banks to enhance their cybersecurity posture against evolving threats in 2026?

A Reducing the frequency of software updates.

B Implementing regular and comprehensive cybersecurity awareness training for all employees.

C Limiting access to sensitive data for employees.

D Encouraging employees to share passwords for convenience.

2.

What type of evolving cyber threat are banks particularly concerned about in 2026, which necessitates enhanced cybersecurity measures?

A Phishing attacks using AI-generated content.

B Ransomware attacks with more sophisticated encryption.

C State-sponsored cyber espionage.

D All of the above.

3.

In response to evolving cyber threats in 2026, what is a common enhancement banks are implementing in their cybersecurity measures?

A Reducing the number of security personnel.

B Implementing multi-factor authentication (MFA) and advanced threat detection systems.

C Using only basic password protection for all accounts.

D Decreasing investment in cybersecurity training for employees.

4.

Which of the following is a key tool used by the RBI's Monetary Policy Committee (MPC) to manage liquidity and influence interest rates, and is currently under consideration for its rate?

A Fiscal Deficit

B Repo Rate

C Current Account Deficit

D Foreign Exchange Reserves

5.

If the Monetary Policy Committee (MPC) decides to maintain the repo rate, what is the likely impact on the cost of borrowing for businesses and individuals in 2026?

A The cost of borrowing is likely to decrease significantly.

B The cost of borrowing is likely to remain stable or increase marginally.

C The cost of borrowing is likely to decrease marginally.

D The cost of borrowing is likely to become zero.

6.

In 2026, the Monetary Policy Committee (MPC) is considering maintaining the repo rate. What is the primary reason cited for this stance, given the current economic scenario?

A To stimulate rapid economic growth and reduce unemployment.

B Persistent inflation concerns and the need to anchor inflation expectations.

C To encourage higher borrowing by commercial banks from the RBI.

D To boost exports and improve the country's trade balance.

7.

Which of the following entities is responsible for ensuring that all outsourced activities by a regulated entity (RE) involved in digital lending comply with RBI's 2026 guidelines?

A The Digital Lending App (DLA) developer.

B The Reserve Bank of India (RBI) directly.

C The Regulated Entity (RE) itself.

D The Ministry of Finance.

8.

According to the RBI's 2026 digital lending guidelines, what is the primary objective behind regulating Digital Lending Apps (DLAs)?

A To encourage aggressive marketing of digital loans.

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

C To increase the number of new digital lending platforms.

D To reduce the overall interest rates charged by all lenders.

9.

As per the latest guidelines issued by the Reserve Bank of India (RBI) in 2026 for digital lending platforms, which of the following is NOT a mandatory requirement for a Digital Lending App (DLA)?

A Disclosure of all-in-cost of loan to the borrower.

B Appointment of a Chief Compliance Officer (CCO) by the Lending Service Provider (LSP).

C Mandatory cooling-off period for all loan products.

D Clear information on the grievance redressal mechanism.

10.

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.