RBI and Banking MCQs - May 2026 Current Affairs

Name: MockPreps
Address: IN

1.

What is the purpose of the 'cooling-off' or 'look-up' period mandated by the RBI's digital lending framework for borrowers?

A To allow borrowers to negotiate a lower interest rate

B To enable borrowers to exit the loan by paying the principal and proportionate APR without penalty

C To facilitate additional credit checks by the Regulated Entity

D To provide time for the Lending Service Provider to verify documents

2.

According to the RBI's new digital lending framework, all loan disbursements and repayments must be executed directly between which two entities?

A Borrower and Lending Service Provider (LSP)

B Borrower and Regulated Entity (RE)

C Lending Service Provider (LSP) and Digital Lending App

D Regulated Entity (RE) and Payment Gateway

3.

What is the primary objective of the RBI's new regulatory framework for digital lending?

A To promote rapid growth of digital lending platforms

B To ensure fair, transparent, and ethical lending practices and protect borrowers

C To reduce the cost of digital loans for all borrowers

D To encourage foreign direct investment in the FinTech sector

4.

What is the minimum Capital to Risk-weighted Assets Ratio (CRAR) prescribed for NBFCs in the 'Upper Layer' (NBFC-UL) under the RBI's Scale Based Regulation?

A 10%

B 12%

C 15%

D 18%

5.

Under the RBI's Scale Based Regulation (SBR) framework for NBFCs, which layer is subject to the most stringent regulatory requirements, including a higher Capital to Risk-weighted Assets Ratio (CRAR)?

A Base Layer (BL)

B Middle Layer (ML)

C Upper Layer (UL)

D Top Layer (TL)

6.

What is the primary objective behind the RBI's enhanced prudential norms for NBFCs?

A To promote competition among NBFCs

B To strengthen the financial stability and resilience of NBFCs

C To increase lending to micro, small, and medium enterprises (MSMEs)

D To reduce the overall interest rates offered by NBFCs

Banking & Finance MCQs - 2026-05-19