MCQs on Microfinance Institutions and NBFCs
MCQs on Microfinance Institutions (MFIs) and Non-Banking Financial Companies (NBFCs)
Sharpen your preparation for banking, finance, and RBI Grade B exams with these important MCQs covering Microfinance Institutions, SHGs, JLGs, and NBFCs including recent RBI regulations.
Q1: When did the SHG-Bank Linkage Programme start in India?
a) 1982
b) 1992
c) 2002
d) 2012
Q2: Which organization initiated the SHG-Bank Linkage Programme?
a) SIDBI
b) NABARD
c) RBI
d) SEBI
Q3: The Grameen Bank Model is based on which concept?
a) Individual Lending
b) Peer-to-peer payments
c) Group Lending and Social Collateral
d) Government Guarantees
Q4: In SHGs, the primary focus group is?
a) Large corporates
b) Farmers
c) Low-income women
d) Industrial workers
Q5: What does JLG stand for?
a) Joint Loan Group
b) Joint Liability Group
c) Joint Lending Governance
d) Joint Liability Governance
Q6: Under RBI's 2022 Directions, the interest rate for microfinance loans is?
a) Fixed at 10%
b) Deregulated but board-approved
c) Regulated by NABARD
d) Regulated by SEBI
Q7: MFIs are eligible to receive funding under?
a) Priority Sector Lending (PSL)
b) Commercial Lending Program
c) Emergency Credit Line Guarantee Scheme
d) Micro Credit Guarantee Fund
Q8: RBI's Fair Practices Code prohibits which practice?
a) Disclosing interest rates
b) Coercive loan recovery
c) Granting microloans
d) Prepayment of loans
Q9: Which is NOT a delivery channel for microfinance?
a) SHGs
b) JLGs
c) MFIs
d) Stock exchanges
Q10: Which is a primary feature of NBFCs?
a) Accept demand deposits
b) Provide banking services without a license
c) Regulated only by SEBI
d) Cannot provide loans
Q11: NBFCs cannot accept which type of deposits?
a) Fixed Deposits
b) Demand Deposits
c) Recurring Deposits
d) Term Deposits
Q12: RBI introduced Scale Based Regulation (SBR) for NBFCs in which year?
a) 2019
b) 2020
c) 2021
d) 2022
Q13: Which layer under SBR covers small NBFCs with minimal risk?
a) Base Layer
b) Middle Layer
c) Upper Layer
d) Top Layer
Q14: What is the formula for Net Owned Funds (NOF)?
a) Paid-up Capital + Reserves
b) Owned Funds - Investments in Subsidiaries + Accumulated Profits
c) Owned Funds - Investments in Subsidiaries - Accumulated Losses
d) Gross Assets - Liabilities
Q15: If Owned Funds are Rs. 50 lakhs and losses are Rs. 10 lakhs, what is NOF?
a) Rs. 50 lakhs
b) Rs. 60 lakhs
c) Rs. 40 lakhs
d) Rs. 30 lakhs
Q16: What type of NBFC specializes in financing vehicles and equipment?
a) Loan Company
b) Asset Finance Company (AFC)
c) Investment Company
d) Infrastructure Finance Company
Q17: Which regulator primarily oversees NBFCs?
a) SEBI
b) RBI
c) IRDAI
d) NABARD
Q18: MFIs must cap loan repayment obligations at what % of household income?
a) 30%
b) 40%
c) 50%
d) 60%
Q19: NBFCs promoting financial inclusion primarily operate in?
a) Urban centers
b) Semi-urban and rural areas
c) Only Tier-1 cities
d) Only metro cities
Q20: Which is NOT a classification of NBFC based on activity?
a) NBFC-D
b) NBFC-ND
c) NBFC-SME
d) NBFC-MFI
Q21: In a JLG, if one member defaults, the others are?
a) Not responsible
b) Partially liable
c) Fully liable
d) None of the above
Q22: Who handles grievances related to NBFCs?
a) Banking Ombudsman
b) Consumer Court
c) RBI Integrated Ombudsman Scheme
d) Civil Court
Q23: NBFC-Factor primarily deals with?
a) Vehicle Loans
b) Housing Loans
c) Factoring Services
d) Infrastructure Loans
Q24: SHG-Bank Linkage model promotes?
a) Direct loans to individuals
b) Group loans through SHGs
c) High-value corporate loans
d) External commercial borrowings
Q25: Which layer of SBR includes systemically important NBFCs?
a) Base Layer
b) Middle Layer
c) Upper Layer
d) Top Layer
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