Updated for 2026 Syllabus Detailed Explanations High-Yield Core Concepts

Bank Promotion Exam Guide

Banking Awareness | Banking Knowledge | for all Bank Exams

Home » SBI CBO BANKING KNOWLEDGE –… » General Practice
Module: General Practice

Q108: Identify the correct statement regarding the reporting of "Digital Lending" loans to Credit Information Companies (CICs).

A
Loans with a tenure of less than 30 days do not need to be reported to CICs.
B
Only the Regulated Entity (Bank/NBFC) is responsible for reporting data to CICs, not the Lending Service Provider (LSP).
C
Buy Now Pay Later (BNPL) loans are exempt from CIC reporting if the amount is under ₹1,000.
D
LSPs are permitted to store the raw credit data of borrowers to improve their underwriting algorithms.
✅ Correct Answer: B
🎯 Quick Answer:
Option B is correct.
Concept Definition: CIC Reporting Integrity.
The Rule: 1. Who Reports: Only the Regulated Entity (RE) has the license to interact with CICs (like CIBIL, Equifax, etc.). The LSP (Fintech app) cannot report defaults directly; they must pass the data to the RE, who reports it.
2. Tenure/Amount: ALL loans, regardless of tenure (even 1-day loans) or amount (even ₹100), must be reported.
There is no exemption for BNPL or short-term loans (so Options A and C are False). 3. Data Storage: LSPs cannot store raw credit data (Option D is False).
← Previous (Q107) RuPay Credit Cards on UPI: Next (Q109) → Which of the following best defines the core ... 📚 Back to General Practice

🔄 More from General Practice: