UPSC Prelims Practice Questions — Delhi HC seeks RBI’s stand on PIL plea over data protection
Q1. Under the data localisation requirement applicable to digital lending in India, within how many hours of processing must borrower data processed on servers outside India be brought back to India and deleted from the foreign servers?
- A. 6 hours
- B. 24 hours
- C. 72 hours
- D. 168 hours (one week)
Q2. With reference to how the RBI (Digital Lending) Directions, 2025 differ from the earlier Digital Lending Guidelines of September 2022, consider the following statements:
1. The 2025 Directions extend coverage to All-India Financial Institutions, which were not covered under the 2022 guidelines.
2. The 2025 Directions introduce mandatory reporting of all Digital Lending Applications by Regulated Entities on the Centralised Information Management System (CIMS) portal.
3. The 2025 Directions dispense with the requirement of an explicit borrower-initiated request for any increase in the credit limit.
Which of the statements given above is/are correct?
- The 2025 Directions extend coverage to All-India Financial Institutions, which were not covered under the 2022 guidelines.
- The 2025 Directions introduce mandatory reporting of all Digital Lending Applications by Regulated Entities on the Centralised Information Management System (CIMS) portal.
- The 2025 Directions dispense with the requirement of an explicit borrower-initiated request for any increase in the credit limit.
- A. 1 and 2 only
- B. 2 and 3 only
- C. 1 only
- D. 1, 2 and 3
Q3. Which one of the following constitutes the principal overarching statutory framework governing the processing of personal data of digital lending borrowers in India?
- A. The Information Technology Act, 2000
- B. The Digital Personal Data Protection Act, 2023
- C. The Consumer Protection Act, 2019
- D. The Credit Information Companies (Regulation) Act, 2005