RBI Digital Lending Guidelines MCQs: Test Your Knowledge

1.

The RBI's enhanced digital lending norms in 2026 aim to bring more fintech players into the formal financial system. What is a key mechanism to achieve this?

A By allowing unregulated lending practices.

B By establishing clear guidelines and a robust regulatory framework that encourages compliance.

C By increasing the number of intermediaries without clear roles.

D By discouraging data sharing between fintechs and banks.

2.

In 2026, the RBI's strengthened digital lending framework requires Regulated Entities (REs) to ensure that all loan agreements are provided to the borrower. What is the typical format for this disclosure?

A Only verbal confirmation is required.

B A physical copy mailed to the borrower's last known address.

C A digital copy provided upfront before the loan contract is signed.

D A summary provided only after the loan tenure is completed.

3.

The Fintech sector has largely welcomed the RBI's strengthened digital lending framework introduced in 2026. What is a primary reason for this positive reception?

A The framework imposes significant new licensing requirements that are easy to meet.

B It provides a clearer regulatory pathway and aims to curb predatory lending practices, fostering trust.

C The framework allows fintech companies to operate without any oversight.

D It mandates that all fintech lending must be done offline.

4.

Which of the following is a new requirement mandated by the RBI's strengthened digital lending framework in 2026 concerning loan disbursal and repayment?

A All loan disbursals must be made in cash.

B Loan disbursal and repayment must be executed only through bank accounts of the Regulated Entity (RE) and not through any third-party pool account.

C Borrowers must repay loans using only cryptocurrency.

D Interest rates on digital loans can be determined solely by the lending platform.

5.

As per the enhanced digital lending framework introduced by the RBI in 2026, which entity is primarily responsible for ensuring that all outsourced activities are performed by the Regulated Entity (RE)?

A The borrower

B The technology service provider

C The Regulated Entity (RE)

D The Ministry of Finance

6.

In 2026, the Reserve Bank of India (RBI) announced enhanced digital lending norms. Which of the following is a key objective of these revised norms?

A To restrict all forms of digital lending to only scheduled commercial banks.

B To ensure greater transparency and protect borrowers' interests.

C To mandate a fixed interest rate for all digital loans across India.

D To reduce the overall number of digital lending platforms operating in India.

Economy & Business MCQs - 2026-09-10