MCQs: Banking & Finance Current Affairs Oct 2026

31.

As part of the 2026 regulatory tightening, the RBI might have introduced stricter guidelines for NBFCs regarding their asset quality management. What would be a likely focus of these guidelines?

A Encouraging the classification of non-performing assets as performing.

B Strengthening provisioning norms for bad loans and improving loan recovery processes.

C Reducing the due diligence required for loan disbursals.

D Allowing higher leverage ratios for NBFCs.

32.

The RBI's tightened norms for NBFCs in 2026 likely include enhanced capital adequacy requirements. What is the purpose of such requirements?

A To allow NBFCs to take on more speculative investments.

B To ensure NBFCs have sufficient buffer to absorb potential losses.

C To reduce the regulatory oversight on NBFCs.

D To encourage NBFCs to operate with lower operational costs.

33.

In 2026, the Reserve Bank of India (RBI) has tightened its regulatory norms for Non-Banking Financial Companies (NBFCs). What is the primary objective behind these stricter norms?

A To encourage NBFCs to diversify into unrelated sectors.

B To ensure the overall financial stability of the economy and mitigate systemic risks.

C To reduce the number of NBFCs operating in the market.

D To increase the lending rates offered by NBFCs.

34.

The RBI's 2026 digital payment security framework likely includes provisions for enhanced customer protection. What is a probable measure under this provision?

A Mandatory disclosure of customer transaction history to third parties.

B Clearer communication on fraud reporting and resolution mechanisms.

C Reducing the availability of customer support channels.

D Introducing new charges for reporting fraudulent transactions.

35.

As part of the enhanced digital payment security framework introduced in 2026, the RBI has emphasized the importance of which of the following for payment system operators?

A Reducing the speed of transaction processing.

B Implementing robust risk management and cybersecurity practices.

C Limiting the types of digital payment methods offered.

D Increasing the reliance on manual verification processes.

36.

In 2026, the Reserve Bank of India (RBI) introduced a new framework to enhance digital payment security. Which of the following is a key objective of this framework?

A To reduce the number of UPI transactions.

B To strengthen security measures against evolving cyber threats and fraud.

C To mandate the use of only physical payment methods.

D To increase transaction fees for digital payments.

37.

What is a key characteristic of the new resolution framework for stressed assets introduced by the RBI in 2026 concerning timelines?

A There are no specific timelines, allowing for indefinite resolution periods.

B Resolution plans must be implemented within 180 days of identification.

C Banks have up to 2 years to decide on a resolution strategy.

D The framework mandates a minimum resolution period of 1 year.

38.

Under the 2026 RBI framework for stressed assets, which of the following is a recognized method for resolution?

A Mandatory sale of all stressed assets to foreign investors.

B Restructuring of loans with a moratorium period of up to 5 years.

C Conversion of debt into equity or other instruments.

D Automatic write-off of all assets classified as NPAs for more than 3 years.

39.

As per the new framework introduced by the RBI in 2026 for resolving stressed assets, what is a key objective?

A To encourage banks to write off all non-performing assets (NPAs) immediately.

B To provide a time-bound and efficient mechanism for the resolution of stressed assets.

C To shift the entire burden of stressed assets to the government.

D To increase the provisioning requirements for all loans by 50%.

40.

Which of the following is NOT a measure taken by the RBI in its 2026 digital lending framework to safeguard borrowers?

A Prohibition of automatic credit limit increase without explicit consent.

B Requirement for lenders to provide a cooling-off period for digital loans.

C Mandatory registration of all digital lending apps with the Ministry of Corporate Affairs.

D Restrictions on the outsourcing of critical functions like customer grievance redressal.

Banking & Finance MCQs