Banking Awareness for SBI PO and IBPS PO 2021

 Banking Awareness is one of the important part like general awareness section for all bank exams conducted in the country. This section provide 100 random questions from Gk100Window's Banking Awareness MCQs.

Banking Awareness Questions and Answer for Bank Exams

1.Which was the first bank to open a branch on foreign soil?

[A] Bank of India

[B] State Bank of India

[C] Bank of Punjab

[D] Allahabad Bank

Correct Answer: A [ Bank of India ]


2.How many Aadhaar Enrolment and Update Centres in total are there in India?

[A] 17000

[B] 13000

[C] 11000

[D] 60000

Correct Answer: B [13000]


3.A 10-member High Level Task force was constituted by RBI on Public Credit Registry under the chairmanship of which of the following persons?

[A] Nandan Nilekani

[B] ABP Pandey

[C] Urjit Patel

[D] Y M Deosthalee

Correct Answer: D [Y M Deosthalee]


4.What is the full form of FERA?

[A] Foreign Exchange Regulation Act

[B] Foreign Exchange Regulation Agency

[C] Foreign Exchange Repulsive Agent

[D] Foreign Expert Regulation Act

Correct Answer: A [Foreign Exchange Regulation Act]


5.Any act of interference by a Central Bank like the RBI in influencing the exchange rate is referred to as which of the following in India?

[A] Dirty Floats

[B] Managed Floats

[C] Fixed Floats

[D] Market Stabilization Floats

Correct Answer: B [Managed Floats]

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6.Which of the following are among the direct methods of exchange control in India?

[A] Intervention

[B] Exchange Restrictions

[C] Exchange Clearing Agreements

[D] All of the above

Correct Answer: D [All of the above]


7.SMERA has been registered under which of the following Acts?

[A] Securities and Exchange Board of India Act, 1992

[B] Reserve Bank of India Act, 1934

[C] Banking Regulation Act, 1949

[D] Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999

Correct Answer: D [Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999]


8.Where does the headquarters of Brickwork Ratings India Private Limited situated?

[A] Bangalore

[B] Hyderabad

[C] Mumbai

[D] New Delhi

Correct Answer: A [Bangalore]


9.How many Credit Rating Agencies are there in India?

[A] 3

[B] 6

[C] 7

[D] 9

Correct Answer: B [6]


10.Which of the following rating agencies is best suited for MSME Ratings?

[A] CRISIL

[B] CIBIL

[C] SMERA

[D] ICRA

Correct Answer: C [SMERA]


Banking Awareness Study Material for IBPS 

11.Which of the following acts provide the legal provisions for the maintenance of Foreign Reserve in India?

[A] RBI Act 1934

[B] Banking Regulation Act 1949

[C] FEMA 1999

[D] Both a and c

Correct Answer: D [Both a and c]


12.ARC ratings is a joint initiative between which of the following?

[A] Sociedade de Avaliacao Estrategica e Risco,Lda of Portugal

[B] Credit Analysis and Research Limited (CARE) of India

[C] Global Credit Rating Company Limited (GCR) of South Africa

[D] All of the Above

Correct Answer: D [All of the Above]


13.Which of the following is the largest Credit Rating Agency in India?

[A] CRISIL

[B] ICRA

[C] CARE

[D] SMERA

Correct Answer: A [CRISIL]


14.The idea of providing factoring services was first thought of in India by which of the following?

[A] Tandem Committee

[B] Patel Committee

[C] Malhotra committee

[D] Vaghul committee

Correct Answer: D [Vaghul committee]


15.Which of the following is considered to be the father of venture capital?

[A] Dariot

[B] Modigliani

[C] Vaghul

[D] Jimmy carter

Correct Answer: A [Dariot]


16.Personal Loans are also called as by which of the following names?

[A] Signature Loans

[B] Unsecured Loans

[C] Consumer Loans

[D] All of the Above

Correct Answer: D [All of the Above]


17.What is the maximum loan amount permitted under the Personal Loan in India?

[A] Depends upon the income of the borrower

[B] Maximum amount is such that EMI is not more than 40-50% of the monthly income.

[C] Unlimited

[D] Both a and b

Correct Answer: D [Both a and b]


18.What are the Pre-Payment charges applied on paying personal loan before tenure period.

[A] 10% of the Principal

[B] 5% of the Principal

[C] 1-2% of the Principal

[D] 7% of the Principal

Correct Answer: C [1-2% of the Principal]


19.Which of the following mutual funds solely invests in stocks?

[A] Bond Fund

[B] Fixed Income Fund

[C] Money Market Mutual Fund

[D] Equity Fund

Correct Answer: D [Equity Fund]


20.Which of the following is the situation when the units of a close -ended fund can be bought?

[A] At the launch

[B] At any time

[C] At redemption

[D] Depends upon the fund type.

Correct Answer: A [At the launch]


A to Z Banking Awareness MCQs for all Bank Exams

21.What are the benefits of leasing to other companies?

[A] Interest Revenue

[B] High Residual Values

[C] Tax Incentives

[D] All of the Above


Correct Answer: D [All of the Above]


22.What is the full form of FASB?

[A] Financial Accounting Standards Board

[B] Finance Accounting Safety Board

[C] Finance and Accounts Standards Board

[D] Financial Accounting Safety Bureau


Correct Answer: A [Financial Accounting Standards Board]


23.When was the RBI Act enacted?

[A] 1st April 1935

[B] 28th November 1934

[C] 6th March 1934

[D] 31st March 1935


Correct Answer: C [ 6th March 1934 ]


24.Which of these banks was nationalised in 1969?

[A] United Bank of India

[B] Vijaya Bank

[C] Andhra Bank

[D] Punjab and Sind Bank


Correct Answer: A [United Bank of India]


25.When was the process of introducing computerization in all branches of banks began in 1993?

[A] 1991

[B] 1992

[C] 1993

[D] 1994


Correct Answer: C [1993]


26.Which was the first public bank to introduce credit cards?

[A] ICICI

[B] HDFC

[C] Central Bank of India

[D] SBI


Correct Answer: C [Central Bank of India]


27.What is the banking, where all banking operations are online, known as?

[A] Virtual Banking

[B] Retail Banking

[C] Mixed Banking

[D] Social Banking


Correct Answer: A [Virtual Banking]


28.What is Retail Banking?

[A] where transactions are held with other banks

[B] where transactions are held directly with individuals

[C] where transactions are held with other big corporations

[D] All of the above


Correct Answer: B [where transactions are held directly with individuals]


29.Which of these is an International Financial Institution?

[A] World Bank

[B] European Investment Bank

[C] Both a and b

[D] None of the above


Correct Answer: C [Both a and b]


30.What do we call the banks which provide capital to the firms in the form of shares and engage in underwriting of stocks?

[A] Commercial Banks

[B] Universal Banks

[C] Merchant Banks

[D] IFI


Correct Answer: C [Merchant Banks]

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31.How many entities were granted provisional license by RBI to convert into Small Finance Bank in 2015?

[A] 8

[B] 10

[C] 12

[D] 25


Correct Answer: B [10]


32.What was the objective behind the Banking correspondent scheme?

[A] Taking banking to the remotest areas

[B] Helping in the process of Financial inclusion

[C] Both a and b

[D] None


Correct Answer: C [Both a and b]


33.In which year for the first time a bill was introduced in the Indian Legislative Assembly for the creation of RBI?

[A] 1927

[B] 1928

[C] 1929

[D] 1930


Correct Answer: A [1927]


34.When was Deposit Insurance and Credit Guarantee Corporation established under RBI?

[A] 1976

[B] 1978

[C] 1981

[D] 1969


Correct Answer: B [1978]


35.When was the Board for Payment and Settlement Systems established in the RBI?

[A] 2005

[B] 2003

[C] 2002

[D] 2001


Correct Answer: A [2005]


36.Which of the following counts under SLR?

[A] Cash in Hand

[B] Gold owned by the bank

[C] Balance with RBI

[D] All of the above


Correct Answer: D [All of the above]


37.What do we call the funds that the banks keep with RBI as a portion of their Net Demand and Time Liabilities?

[A] Statutory Liquidity Ratio

[B] Cash Reserve Ratio

[C] Bank Rate

[D] Reverse Repo Rate


Correct Answer: B [Cash Reserve Ratio]


38.What do we call the official interest rate at which RBI provides loans to the banking system?

[A] Reverse repo rate

[B] Bank rate

[C] SLR

[D] CRR


Correct Answer: B [Bank rate]


39.Who was the chairman of the first Banks Board Bureau?

[A] Vinod Rai

[B] Usha Mehta

[C] Ravi Shankar Menon

[D] Raghuram Rajan


Correct Answer: A [Vinod Rai]


40.In which year the Paper Currency Act was passed?

[A] 1861

[B] 1885

[C] 1909

[D] 1919

Correct Answer: A [1861]


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41.Where was the first printing press for bank notes setup in India?

[A] Bhopal

[B] Pune

[C] New Delhi

[D] Nasik


Correct Answer: D [Nasik]


42.Under which section of the RBI Act 1934 the Ways and Means Advances is provided?

[A] Section 3(15)

[B] Section 6(3)

[C] Section 21

[D] Section 17(5)


Correct Answer: D [Section 17(5)]


43.When was the RBI Act amended to establish the Monetary Policy Committee?

[A] 2014

[B] 2015

[C] 2016

[D] 2017


Correct Answer: C [2016]


44.Which of the following functions are performed by RBI as a banker of banks?

[A] settlements of inter-bank transactions

[B] enables banks to maintain their accounts with RBI for statutory reserve requirements

[C] acts as the lender of last resort

[D] All of the above


Correct Answer: D [All of the above]


45.What is a Doubtful Asset?

[A] sub-standard asset for a period of 12 months

[B] sub-standard asset for a period of 3 months

[C] sub-standard asset for a period of 6 months

[D] None of the above


Correct Answer: A [sub-standard asset for a period of 12 months]


46.Which of these committees is related to BBPS?

[A] Y Malegam committee

[B] Rangarajan committee

[C] G .Padmanabhan committee

[D] Narsimaham committee


Correct Answer: C [G .Padmanabhan committee]


47.What are the advantages of BBPS?

[A] Multiple Payment Modes

[B] Payment of bill anywhere and anytime

[C] Timely & guaranteed settlements between parties

[D] All of the above


Correct Answer: D [All of the above]


48.What is the length of UPI pin?

[A] 2 digits

[B] 10 digits

[C] 4-6 digits

[D] 2-4 digits


Correct Answer: C [4-6 digits]


49.Which of the following items is not related with e-banking?

[A] Demand draft

[B] ECS

[C] SPMS

[D] ATM

Correct Answer: A [Demand draft]


50.What is the maturity period of Treasury Bill?

[A] 91 Days

[B] 364 Days

[C] Both (a) and (b)

[D] None of these

Correct Answer: A [91 Days

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51.Consider the following statements and identify the right ones. i. Deposits are created by banks and financial institutions. Ii. They constitute the major source of money supply in India.

[A] I only

[B] II only

[C] Both

[D] none


Correct Answer: C [Both]


52.Which of the following about money supply measures adopted in 1998 is wrong?

[A] M1= currency with public +demand deposits with banking system + other deposits with RBI

[B] M2= M1 + savings deposits of post office savings bank

[C] M3= M1+ time deposits with banking system

[D] None of the above


Correct Answer: D [None of the above]


53.What is an Demat account?

[A] Zero Balance Accounts

[B] Accounts which are opened to facilitate repayment of a loan taken from the bank. No other business

[C] Accounts in which shares of various companies are traded in electronic form

[D] Accounts which are operated through internet banking facility


Correct Answer: C [Accounts in which shares of various companies are traded in electronic form]


54.Which of the following is also known as Prepaid Debit cards?

[A] Loadable Debit Cards

[B] Reloadable Debit Cards

[C] Relational Debit Cards

[D] None of The Above


Correct Answer: B [Reloadable Debit Cards]


55.Loans to poor people by banks have many limitations including lack of security and high operating cost. So to help them which type of finance system developed?

[A] Ponzi schemes

[B] Micro Finance System

[C] Money Laundering Schemes

[D] Money tampering finance


Correct Answer: B [Micro Finance System]


56.In service sector, a medium enterprise is an enterprise where the investment in equipment is more than Rs. 2 crore but does not exceed how much amount?

[A] Rs 5 crore

[B] Rs 10 crore

[C] Rs 15 crore

[D] Rs 20 crore


Correct Answer: A [Rs 5 crore]


57.What minimum pension will be given to every labourer as announced in the Union Budget 2019-20?

[A] Rs 5,000 per year

[B] Rs 1,000 per year

[C] Rs 1,000 per month

[D] Rs 500 per month


Correct Answer: C [Rs 1,000 per month]


58.How is pension calculated?

[A] 50% of emoluments (last pay) or average emoluments, whichever is more beneficial to the retiring Govt.

[B] 70% of emoluments (last pay) or average emoluments, whichever is more beneficial to the retiring

[C] 20% of emoluments (last pay) or average emoluments, whichever is more beneficial to the retiring Govt.

[D] None of the above


Correct Answer: A [50% of emoluments (last pay) or average emoluments, whichever is more beneficial to the retiring Govt.]


59.Who among the following finalised Lead Bank scheme?

[A] Government of India

[B] IRDA

[C] RBI

[D] None of the above

Correct Answer: C [RBI ]


60.Which of the following banks is the first to provide Mobile ATM?

[A] HSBC

[B] ICICI BANK

[C] SBI

[D] Axis Bank

Correct Answer: B [ICICI BANK]

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61.Which among the following benefits is associated with RuPay?

[A] International transactions lead to higher transactions costs. Such costs can be reduced by using RuPay

[B] Users will get alerts for every transaction made through RuPay Card

[C] Processing Fees for RuPay card compared with regular debit/credit cards will be considerably lower

[D] All of The Above


Correct Answer: D [All of The Above]


62.Which of the following is also known as Prepaid Debit cards?

[A] Loadable Debit Cards

[B] Reloadable Debit Cards

[C] Relational Debit Cards

[D] None of The Above


Correct Answer: B [Reloadable Debit Cards]


63.What does the microfinance model NOT predict?

[A] a decrease in interest rates when repayment is regular and in time

[B] homogenous risk groups

[C] self-selection of the best borrowers

[D] none of the above


Correct Answer: C [self-selection of the best borrowers]


64.Micro credit or micro finance is a novel approach to bank with the poor. In this approach bank credit is extended to the poor through which of the following?

[A] Self Help Groups

[B] Anganwadees

[C] Co-operative Credit Societies

[D] RBI


Correct Answer: A [Self Help Groups]


65.In which pension plan, employers contribution is specified in employees retirement savings funds?

[A] defined benefit pension plan

[B] defined contribution pension plan

[C] defined non contributory pension plan

[D] deferred contribution pension plan


Correct Answer: B [defined contribution pension plan]


66.How much percent of SHG consists exclusively of women?

[A] 90%

[B] 50%

[C] 80%

[D] 60%


Correct Answer: A [90%]


67.The term Negotiable Instruments is associated with which of the following?

[A] A written document that transfers the value in it from one person to other

[B] A written document entitled on an individual by delivery or endorsement

[C] A written document, entitled on a person to receive money

[D] All of the above


Correct Answer: D [All of the above]


68.What happens if in an instrument the amount undertaken or ordered to be paid is stated differently in figures and in words?

[A] the instrument is void due to uncertainty

[B] the amount stated in figure shall be the amount undertaken or ordered to be paid

[C] the amount stated in words shall be the amount undertaken or ordered to be paid

[D] none of the above


Correct Answer: A [the instrument is void due to uncertainty]


69.When did Negotiable Instruments Act, 1881 came into force?

[A] 9th December, 1881

[B] 19th December, 1881

[C] 1st March, 1882

[D] none of the above


Correct Answer: C [1st March, 1882]


70.For first five years how much paid-up equity capital needs to be maintained by promoters in payments bank?

[A] 20%

[B] 30%

[C] 40%

[D] 60%

Correct Answer: C [40%]

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71.Which of the followings are not the Negotiable Instruments as defined by the Statute (law)?

[A] Banker’s Note

[B] Promissory Note

[C] Bill of Exchange

[D] Cheques Answer


Correct Answer: A [Banker’s Note]


72.Which of the following parties are involved in the Promissory notes?

[A] The Maker

[B] The Payee

[C] Endorsee

[D] Both 1 and 2


Correct Answer: D [Both 1 and 2]


73.When did Negotiable Instruments Act, 1881 came into force?

[A] 9th December, 1881

[B] 19th December, 1881

[C] 1st March, 1882

[D] none of the above


Correct Answer: C [1st March, 1882]


74.How much percentage of its funds can be held by payments banks in current and time deposit with Scheduled Commercial Bank?

[A] 25%

[B] 40%

[C] 50%

[D] 75%


Correct Answer: A [25%]


75.Which of the following is included in payment system of PSS Act?

[A] clearing

[B] payment

[C] settlement service

[D] All of the above


Correct Answer: D [All of the above]


76.When did Payment and Settlement Systems Act, 2007 (PSS Act, 2007) came into force?

[A] 12th August 2008

[B] 12th September 2008

[C] 12th August 2009

[D] 12th December 2007


Correct Answer: A [12th August 2008]


77.The 0 in IFSC Code is placed in which of the following positiona of the 11 digit IFSC code?

[A] 3rd

[B] 7th

[C] 6th

[D] 5th


Correct Answer: D [5th]


78.Which of the following is an account maintained in foreign currency with an Authorised Dealer Bank?

[A] Exchange Earners’ Foreign Currency Account

[B] Exchange Eligible Foreign Currency Account

[C] Earners’ Eligible Foreign Currency Account

[D] Earners’ Exchange Foreign Currency Account


Correct Answer: A [Exchange Earners’ Foreign Currency Account]


79.Under Liberalised Remittance Scheme, PAN card need not be insisted upon for remittance made towards permissible current account transactions up to how much amount?

[A] USD 25,000

[B] USD 20,000

[C] USD 15,000

[D] USD 10,000


Correct Answer: A [USD 25,000]


80.Which of the following bank has launched ‘mVisa’ – a mobile-based payments solution?

[A] SBI

[B] ICICI Bank

[C] HSBC Bank

[D] Canara Bank

Correct Answer: A [ SBI ]

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81.Which of the following markets enable new issues of equity and debt to be traded?

[A] Secondary markets

[B] Discount markets

[C] Primary capital markets

[D] Gilt repo market


Correct Answer: C [Primary capital markets]


82.Which of the following is component of capital market?

[A] Equity market

[B] Debt market

[C] Derivative market

[D] All of the above


Correct Answer: D [All of the above]


83.Which of the following economic concepts is categorised on the basis of current account or capital account or both?

[A] Value of the foodgrains stock of a country.

[B] The balance of payments

[C] Gross National Product

[D] Gross National Income


Correct Answer: B [The balance of payments]


84.What is ‘future trading’?

[A] a trade between any two stock exchanges

[B] an agreement between two parties to buy or sell an underlying asset in the future at a

[C] an agreement between stock exchanges that they will not trade the stocks of each other

[D] None of the above


Correct Answer: B [an agreement between two parties to buy or sell an underlying asset in the future at a]


85.Which of the following is the core investment company having total assets of not less than ₹100 crore?

[A] Systemically Important Core Investment Company

[B] Infrastructure Debt Fund

[C] Infrastructure Finance Company

[D] NBFC-MFI


Correct Answer: A [Systemically Important Core Investment Company]


86.Which of the following is true about NBFC?

[A] NBFC cannot accept demand deposits

[B] NBFCs cannot issue cheques drawn on itself

[C] Deposit insurance facility of DICGC is not available to depositors of NBFCs

[D] All are true


Correct Answer: D [All are true]


87.Which of the following statements is true regarding Ombudsman Scheme for NBFC?

[A] Section 45L of the RBI Act, 1934 confers powers on RBI to notify such scheme

[B] NBFCs having customer interface, with assets size of one billion rupees or above are eligible to be

[C] The scheme is initially being introduced at the four metro centers

[D] All of the above


Correct Answer: D [All of the above]


88.A merchant bank is a financial institution conducting money market activities and which of the following?

[A] Lending

[B] Underwriting and financial advice

[C] Investment service

[D] All of the above


Correct Answer: D [All of the above]


89.The early growth of merchant banking in the country is assigned to the which of the following?

[A] Foreign Exchange Regulation Act, 1973

[B] Securities Contracts Act

[C] Income-tax Act

[D] FEMA


Correct Answer: A [Foreign Exchange Regulation Act, 1973]


90.Issue management is an important function of which of the following?

[A] Public banker

[B] Lead banker

[C] Merchant banker

[D] Private banker

Correct Answer: C [Merchant banker]

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 91. What is the sensitive index of the National Stock Exchange of India also known as?


SENSEX 

CRIS 

CSE 

MCS 

NIFTY

Answer: (5) NIFTY 


92. What is the full form of IMF?


International Monetary Fund

Indian Monetary Fund

Inflation Management Fund

International Management Funds

Indian Management Funds

Answer: (1) International Monetary Fund


93. Which public sector bank among the following has the largest number of foreign branches?


State Bank of India

Bank of Baroda

Andhra Bank

Bank of India

Punjab National Bank

Answer: (2) Bank of Baroda


94. At the time of periodical review, which of the following rates are reviewed by the Reserve Bank of India?


Repo Rate

Bank Rate

Savings Bank Rate

All of the Above

None of the Above

Answer: (4) All of the Above


95. Where is the headquarters of the Asian Development Bank?


China

Philippines

India

Indonesia

Vietnam

Answer: (2) Philippines


96. The money a commercial bank needs to preserve in the form of cash, or gold or Bonds before providing credit to their own customers is known as


Cash Reserve Ratio

Marginal Standing Facility

Statutory Liquidity Ratio

Liquidity adjustment facility

None of the Above

Answer: (3) Statutory Liquidity Ratio


97. Who was the first Indian Governor of RBI?


Sir Bengal Rama Rau

L.K. Jha

N.C. Sen Gupta

Sir C.D. Deshmukh

H.V.R Iyengar

Answer: (4) Sir C.D. Deshmukh


98. What does ‘M’ stand for in MDR? 

Money 

Mobile 

Merchant 

Members 

Mutual

Answer: (3) Merchant


99. The fund transfers through the NEFT system occurs in how many batches? 


20 

18 

23 

24

Answer: (4) 23


100. Where is the headquarters of Jana Small Finance Bank located? 


Kolkata

Mumbai 

Bengaluru 

Chandigarh

Chennai

Answer: (3) Bengaluru

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