Banking & Finance MCQs

The RBI has classified NBFCs into four tiers: Base Layer, Middle Layer, Upper Layer, and NBFC-Systemically Important (NBFC-SI). The Upper Layer comprises NBFCs with high systemic importance.

The primary aim of strengthening the NBFC regulatory framework is to ensure the financial stability of the sector, manage systemic risks, and safeguard the interests of customers and depositors.

The new digital lending guidelines do not mandate a specific cooling-off period before loan closure. However, they emphasize transparency and fair practices throughout the loan lifecycle.

The guidelines mandate that the Digital Lending App must clearly display the all-inclusive Annual Percentage Rate (APR) and all fees and charges associated with the loan before the borrower agrees to the loan.

The new digital lending guidelines primarily permit banks and NBFCs (including those with a Reserve Bank of India license) to undertake digital lending activities. Fintechs can partner with them but cannot lend directly without a license.

The RBI's monetary policy aims to achieve the primary objective of maintaining price stability while keeping in mind the objective of growth. Keeping the repo rate at 6.5% reflects a balance between these objectives.

The Monetary Policy Committee (MPC) of the Reserve Bank of India is mandated to determine the policy repo rate required to maintain inflation at the target level while supporting economic growth.

In October 2026, the RBI's Monetary Policy Committee decided to keep the Repo Rate unchanged at 6.5%.

PMJDY accounts offer various benefits, including a RuPay Debit Card, accident insurance cover, and an overdraft facility of up to ₹10,000 (subject to eligibility criteria and satisfactory operation of the account).

Unified Payments Interface (UPI) has revolutionized digital payments in India due to its ease of use, interoperability, and real-time nature, significantly contributing to financial inclusion by enabling even small transactions digitally.