MCQs: Banking & Finance Current Affairs Oct 2026

11.

What is the primary objective of the Monetary Policy Committee (MPC) as mandated by the Reserve Bank of India Act, 1934?

A To maximize employment generation.

B To maintain price stability while keeping in mind the objective of growth.

C To regulate foreign exchange markets.

D To ensure financial inclusion across all sectors.

12.

How many members constitute the Monetary Policy Committee (MPC) of the Reserve Bank of India?

A Five

B Six

C Seven

D Eight

13.

What is the primary purpose of the 'cooling-off' or 'look-up' period introduced by RBI in digital lending guidelines?

A To allow borrowers to negotiate a lower interest rate.

B To provide borrowers an option to exit the loan by repaying the principal without penalty.

C To enable lenders to re-evaluate the borrower's creditworthiness.

D To facilitate faster loan processing for repeat customers.

14.

Which document is mandated by RBI for digital loans to ensure transparency regarding the loan terms and conditions for borrowers?

A Annual Financial Statement (AFS)

B Key Fact Statement (KFS)

C Loan Sanction Letter (LSL)

D Credit Information Report (CIR)

15.

As per RBI's enhanced digital lending norms, how must the loan disbursal and repayment be handled?

A Directly between the borrower's bank account and the Regulated Entity (RE) without any pass-through.

B Through a Lending Service Provider (LSP) acting as an intermediary.

C Via a digital wallet linked to the LSP.

D Cash disbursal is permitted for small-ticket loans.

16.

As part of the 2026 cybersecurity enhancements, banks are required to conduct regular penetration testing. What is the minimum frequency mandated by the RBI for such testing?

A Annually

B Bi-annually

C Quarterly

D NEEDS_REVIEW

17.

The RBI's strengthened cybersecurity framework for banks, effective from 2026, emphasizes the need for regular threat intelligence sharing. Which entity is primarily responsible for coordinating this sharing among banks?

A Indian Banks' Association (IBA)

B National Cyber Security Coordinator (NCSC)

C Reserve Bank of India (RBI) itself

D NEEDS_REVIEW

18.

In 2026, the RBI mandated banks to implement a new cybersecurity framework. What is a key component of this strengthened framework regarding data protection?

A Mandatory use of public Wi-Fi for all transactions

B Implementation of multi-factor authentication for all critical systems

C Reduced frequency of security audits

D NEEDS_REVIEW

19.

The RBI's Annual Report 2026 also discussed the performance of the external sector. What was the trend observed in India's Current Account Deficit (CAD) during the period covered by the report?

A Widened significantly

B Narrowed considerably

C Remained stable

D NEEDS_REVIEW

20.

According to the RBI's Annual Report 2026, what was the projected GDP growth rate for India in the fiscal year 2025-26?

A 6.5%

B 7.0%

C 7.5%

D NEEDS_REVIEW

Banking & Finance MCQs