MCQ
upsc-p1-economy-digital-fintech MCQ - Practice Questions with Answers
Solve 7 upsc-p1-economy-digital-fintech questions for RAS/RPSC preparation.
Practice questions
Q1With reference to RBI's digital lending framework, consider the following statements: 1. Outsourcing loan sourcing or servicing to an app transfers responsibility for fair practice entirely away from the regulated lender. 2. The framework emphasises direct disbursal and repayment between the borrower's bank account and the regulated entity. Which one of the following is correct?
Statement 2 is correct. Direct fund flow between the borrower and regulated entity is a stated safeguard. Statement 1 is incorrect because outsourcing cannot dilute accountability; the regulated lender remains responsible for its lending-service providers and fair practice.
Q2With reference to the institutional architecture of the Unified Payments Interface (UPI), consider the following statements: 1. NPCI operates UPI. 2. RBI regulates payment systems under the Payment and Settlement Systems Act, 2007. 3. UPI transfers central bank money rather than commercial bank deposits. Which of the statements given above are correct?
Statements 1 and 2 are correct: NPCI is the UPI operator, while RBI is the payment-system regulator under the 2007 Act. Statement 3 is incorrect because UPI is a payment interface that moves commercial-bank deposits; the digital rupee is central bank money.
Q3Arrange the following stages of a normal UPI payment in the correct sequence: A. The payment message passes through the NPCI switch to the relevant bank. B. The banks debit and credit the respective accounts, followed by settlement through the regulated arrangement. C. The user initiates payment through a UPI ID, mobile number, QR code or collect request. D. The app authenticates the user, normally through device binding and a UPI PIN. Select the correct answer using the code given below:
The user first initiates the payment (C), the app authenticates the user (D), the message then travels through the NPCI switch (A), and the banks debit and credit accounts before regulated settlement (B). Thus, option B gives the correct sequence.
Q4With reference to digital financial inclusion, consider the following statements: 1. A rise in digital payments necessarily establishes that tax compliance and productivity have increased. 2. Direct Benefit Transfer can reduce intermediary leakages but authentication failure can exclude genuine beneficiaries. 3. Assisted channels, grievance redress and cash-out points can affect whether digital infrastructure works for poorer households. Which of the statements given above are correct?
Statements 2 and 3 are correct: digital welfare can reduce leakage while also creating exclusion, and meaningful inclusion depends on assisted access, redress and cash-out facilities. Statement 1 is incorrect because payment digitisation alone does not prove greater tax compliance or productivity.
Q5Match List I with List II: List I (Instrument) A. UPI B. Prepaid wallet C. Digital rupee D. Private crypto-asset List II (Legal or monetary character) 1. Central bank liability 2. Transfers commercial-bank deposits 3. Not legal tender in India 4. Holds value paid in advance Select the correct answer using the code given below:
UPI transfers commercial-bank deposits (A-2); a prepaid wallet holds advance value (B-4); the digital rupee is a central bank liability (C-1); and a private crypto-asset is not legal tender in India (D-3). Therefore, option D is correct.
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6With reference to differentiated banks in India, consider the following statements: 1. Payment banks and small finance banks were both covered by RBI guidelines issued on 27 November 2014. 2. Payment banks may undertake lending to small farmers and micro enterprises. 3. Small finance banks may accept deposits and lend to underserved groups. Which of the statements given above are correct?
7Match List I with List II: List I (Activity) A. Payment-system regulation B. Securities advice and broking C. Insurance distribution D. Pension-linked digital distribution List II (Primary sectoral regulator) 1. IRDAI 2. PFRDA 3. RBI 4. SEBI Select the correct answer using the code given below: