Banking Awareness Questions Latest Banking Awareness MCQ Objective Questions & CE ABR ee lial Start Complete Exam Preparation Cee Rr roe leet oes es Loerie rs jownload App Ex.) Question 1: View this Question Online > MCLR is the minimum lending rate below which a bank is not permitted to lend. What does 'M' Stand for? 1. Minimum: 2. Marginal 3. Monetary 4. Money ‘Answer (Detailed Solution Below) Option 2: Marginalcoaching India’s Super Teachers for all govt. exams Under One Roof BD ooo ae isin Banking Awareness Question 1 Detailed Solution The correct answer is Marginal. ‘6 In News + MCLR = Marginal Cost of Fund-Based Lending Rate. = Key Points + The MCLR is the fixed internal reference rate for banks and lending institutions. + It is set by the Reserve Bank of India (RBI) + The banks use the MCLR under the RBI to define the minimum interest rates applicable to the different types of loans. + The concept of MCLR was introduced in April 2016 to help borrowers avail of various loans (like home loans) benefits from the RBI's rate cut. + The MCLR is updated by the RBI every once in a while when the nation’s economic activities change dramatically. + The RBI recently made its move from the historic benchmark prime. &; Additional Information + The banks are not allowed to lend money at any rate below the MCLR. ee ES ro Riou) Brera eter Start Complete Exam Preparation Pages fee Pea ld eo Cresta Exot D> Download App Question 2:Which among the following is the oldest joint stock bank in India? 1. Allahabad Bank o 2. Bank of Baroda Nie G 3. Yes Bank ; 0° 4. Punjab N; ven Detailed Solution Below) Option 1 : Allahabad Bank Banking Awareness Question 2 Detailed Solution The correct answer is Allahabad Bank © Key Points + Joint stock banks are those banks that issue shares to the Public and are owned by them. + Option 1, Allahabad Bank, which is the oldest Joint stock bank in India, established in 1865. + Option 2, Bank of Baroda, was established in 1908, which makes it younger than Allahabad Bank. + Option 3, Yes Bank, is a private sector bank and was founded in 2004, which makes it much younger than Allahabad Bank. + Option 4, punjab National Bank, was established in 1894, which is only one year younger than Allahabad Bank. PNB isa state-owned hank and not a joint stock bank which makes it an incorrect answer to the question. + Therefore, the correct answer is option 1, Allahabad Bank. & Additional Informa + Option 1: Allahabad Bank > It was established in 1865 in Allahabad, Uttar Pradesh. > The bank was nationalized in 1969. ° Currently, it isa subsidiary of Indian Bank. ° Allahabad Bank has a wide network of brane! + Option 2: Bank of Baroda > Bank of Baroda was established in 1908 in « Option 3: Yes Bank> Yes Bank was founded in 2004 by Rana Kapoor and Ashok Kapur. It isa private sector bank and is headquartered in Mumbai. > Yes Bank offers a wide range of banking and financial services. = The bank faced financial troubles in 2019 and was bailed out by a consortium of banks led by State Bank of India. + Option 4: Punjab National Bank + Punjab National Bank was established in 1894 in Lahore, Punjab (now in Pakistan) = Itis a state-owned bank and was nationalized in 1969. © PNB has a wide network of branches and ATMs acioss India. = The bank faced a major fraud in 2018 involving the jeweler Nirav Modi. Coa eee ica) Oe Oa oe Start Complete Exam Preparation kes iio iii Download App Question 3: View this Question Online > Which of the following bank controls the bank rate?” 1, Private Banks 2. Reserve Bank.of India 3 .. Banks 4. None of the above Answer (Detailed Solution Below) Option 2: Reserve Bank of India Banking Awareness Question 3 Detailed Solution The correct answer is the Reserve Bank of India. © Key Points+ India got its central bank in 1935. It is the ‘Reserve Bank of India’. + RBI is the issuer of currency in India. + It controls the money supply of the country through the various methods, like Bank rate, open market operations and variations in reserve ratios. « Itacts as a banker to the government. + RBI is the custodian of the foreign exchange reserves of the economy. * Italo acts as a bank in nking system. Thus, we can say that the Reserve Bank of India controls the bank rate. & Additional Information + The RBI can influence the money supply by changing the rate at which it gives loans to commercial banks. This rate is called the Bank Rate in India, By increasing the bank rate, loans taken by commercial banks become more expensive; this reduces the reserves held by the commercial bank and hence decreases the money supply. Perera rec) Start Complete Exam Preparation ae Ce ee Go RCC sca Download App Question 4: View this Question Online > Reserve Bank of India became the first central bank in the world to have more than one million followers on in November 2020 1. Instagram 2. Twitter 3. Snapchat 4. Facebook Answer (Detailed Solution Below) Optioni Ik of India became the first central bank in the world to have more than one lowers on Twitter in November 2020. nn + The Reserve Bank of India (RBI) is the central bank of India whose primary function is to manage and govern the financial system of the country. + The Reserve Bank of India was founded on 1 April 1936, In Kolkata, and its headquarters is located in Mumbai. + As of now January 2022 the Reserve bank of India governor is Shaktikanta Das. + Reserve Bank of India Act, 1934 is the legislative act under which the Reserve Bank of India was formed. ° This act along with the Companies Act, which was amended in 1936, was meant to provide a framework for the supervision of banking firms in India. & Additional Informa Banking Awareness Quest The an ans\ Detais CEO | teadquatters |Cqmpany * Instagram is an American photo and video : sharing Kein social networking service linstegrery nded by systrom Kevin Systrom and Mike Krieger| Menlo Park| Califprnia, United Statds + Twitter is an American + Sanmigotllogging + social Frantisco, networking Parkg service on which users Califrnia, post and interact with Agfawal Unitdd messages known as Statds tweets. Twitter + Snapchat is an American multimedia Sant instant messaging app and service leveloped Snap Inc,, originally Snapchat Inc. . Monica, Califprnia, Snapchi United Statds * Meta Platforms, Inc, also . known as Menlo Meta and . formerly Make — Park! known as Facebook, Inc, isa California, \Fakebookultinationall technology Zudkerbetinitdd covasteurieraty Statqs Menlo Park, Califomia. India’s #1 Leaming Platform CR TCC DRE Coast Start Complete Exam Preparationaes Oe en Colecs Download App Question 5: View this Question Online > Which of the following functions of Reserve Bank of India are correct? 1B to Banks II, Currency Issuer 1. Only! 2. Neither! nor II 3. Both | and Il 4, Only tl Answer (Detailed Solution Below) Option 3: Both | and Il Banking Awareness Question 5 Detailed Solution The correct answer is Both | and Il. © Key Points + The Reserve Bank of India (RBI) is the central bank of India. * It is regarded as bank of banks and was éstablished on April 1, 1935. ~ + Functions of the RBI are as follows: = Issuer of Currency ; Banker to Government * Custodian of Cash Reserves of Commercial Banksa © Custodian of country’s foreign reserves © Lender of last resort Thus, we can say that the Reserve Bank of India is the banker of the banks and issuer of the currency. Oa & Eee Peery Start Complete Exam Preparation OR Ger RR Rost ois kee one Mock Tests leas hod restos Byer e Download App Question 6 View this Question Online > “The Name you can Bank Upon’ is the slogan of which of the following banks? 1. Punjab National Bank 2. State Bank of India 3. HDFC Bank, AR. Answer (Detailed Solution Below) Option 1 : Punjab National Bank Banking Awareness Question 6 Detailed Solution The correct answer is Punjab National Bank. © Key Points + PNB was established on May 19, 1894, is India's first Swadeshi bank. + The Bank opened for business on 12 April 1895. + PNB is an Indian public sector bank headauartered in New Delhi.+ Atul Kumar Goel is the current CEO of PNB. & Additional Informa + State Bank of India > SBI was established on 1 July 1955. > [tis a government-owned corporation with its headquarters in Mumbai. “Pure Banking, Nothing Else’ is the tagline. + Dinesh Kumar Kh: the Chairman of the State Bank of India + HDFC Bank *‘ + HDFC Bank was estal in August 1994 and commenced operations as 3 Scheduled Commercial Bank in January 1995. > Itisa private bank headquartered in Mumbai. = ‘We Understand Your World’ is the tagline. = Sashidhar Jagdishan js the current CEO of HDFC. + Canara Bank > Canara Bank was established in July 1906 and nationalized in 1969. + [tis headquartered in Bengaluru. > ‘Together We Can’ is the tagline. - Lingam Venkat Prabhakar js the current CEO of Canara Bank. co India's #1 Learning Platform Rea eee Pela mew Climate teh iced) ic} pe { Das MasterCl Download App Px Question 7 View this Question Online > Which among the following is the oldest joint stock bank in India? 1. Allahabad Bank 2. Bank of Baroda 3. Yes Bank 4. Punjab National Bank 4 Answer (Detailed Solution Below)Option 1: Allahabad Bank Banking Awareness Question 7 Detailed Solution The correct answer is Allahabad Bank. © Key Points + Joint stock banks are those banks that issue shares to the public and are owned by them + Option 1, Allahabad Bank, which is the oldest joint stock bank in india, established in 1865. + Option 2, Bank of Baroda, was established in 1908, which makes it younger than Allahabad Bank. + Option 3, Yes Bank, is a private sector bank and was founded in 2004, which makes it much younger than Allahabad Bank. + Option 4, Punjab National Bank, was established in 1894, which is only one year younger than’ Allahabad Bank. PNB is a state-owned bank and not a joint stock bank which makes it an incorrect answer to the question. fi . + Therefore, the Correct answer is option 1, Allahabad Bank. & Additional Informa’ + Option 1: Allahabad Bank om. © It was established in 1865 in Allahabad, Uttar ‘Pradesh. * The bank was nationalized in 1969. + Currently, itis a subsidiary of Indian Bank. = Allahabad Bank has a wide network of Branches and ATMS across India + Option 2: Bank of Baroda “~ © Bank of Baroda was & ed in 1908 in Baroda, Gujarat. Itisa state-owned .as Nationalized in 1969. + Bank of Baroda has a presence in over 25 countries. It is the Second-largest public sector bank in India. + Option 3: Yes Bank + Yes Bank was founded in 2004 by Rana Kapoor and Ashok Kapur. + It isa private sector bank and is headquartered in Mumbai. * Yes Bank offers a wide range of banking and financial services. + The bank faced financial troubles in 2019 and was bailed out by a consortium of banks led by State Bank of India. + Option 4: Punjab National Bank © Punjab National Bank wes established in 1894 in Lahore, Punjab (now in Pakistan). Itisa state-owned bank and wes nationalized in 1969. + PNB has a wide network of branches and ATMs across India. + The bank faced a major fraud in 2018 involving the jeweler Nirav Modi. ieee anu Beet Start Complete Exam Preparation OR Ceo a cost noid oats Par ee cal Cresieacig Px)Download App Question 8 View this Question Online > Reserve Bank of India became the first central bank in the world to have more than one million followers on in November 2020 1. Instagram 2. Twitter 3. Snapchat 4, Facebook Answer (Detailed Solution Below) Option 2: Twitter Banking Awareness Question 8 Detailed Solution The cortect ansiver is Twitter. + Reserve Bank of India became the first central bank in the world to have more than one million followers on Twitter in November 2020. © Key Points + The Reserve Bank of India (RBI) is the central bank of India whose primary function is to manage and govern the financial system of the country. + The Reserve Bank of India was founded on 1 April 1936, in Kolkata, and its headquarters is located in Mumbai. + As of now January 2022 the Reserve bank of India governor is Shaktikanta Das. + Reserve Bank of India Act, 1934 is the legislative act under which the Reserve Bank of India was formed. » This act along with the Companies Act, which was amended in 1936, was meant to provide a framework for the supervision of banking firms in India. & Additional Informa a: a a |Details CEO + Snapchat is an American Headquaiters eqmpany + Instagram is . an American ‘Nenlo photo and : video . sharing Kevin Parks social networking Califprnia, Instagram Junded by Sytrom nied Kevin Systrom and Mike krieger| States * Twitter is an American + San migotlloggirg + social Fran¢isco, networking Parpg service on srujiter Which users Califprnia, Witter post and interact with Agtawal Unitdd messages known as Statas tweets multimedia Sant] instant _ . Nona, messaging eu app and developed Calithris, Srjapch: spikgel Snap Inc., miele originally Snapchat Side Inc + Meta Platforms, Inc, also P known as weak Meta and . formerly Mak — Park] known as‘Question 9 The Reserve Bank of India (RBI) has excluded which of the following banks from the Second Schedule of the RBI Act after it was merged with DBS Bank India Ltd (DBIL) in —— one Inc, isa Califprnia, technology cdraglenbierat: Menlo Park, Califomia. ieee amu Bee icly Start Complete Exam Preparation Re Recess i Pe oe (] CaS Dos cieerry jownload App Question Bank Byte 2020? 1 . Indian Overseas Bank Karur Vysya Bank. . TMB Bank . Bandhan Bank Answer (Detailed Solution Below) Option 2: Lakshmi Vilas Bank Banking Awareness Question 9 Detailed Solution The enrrect ancwer ic Lakehmi Vila View this Question Online >+ The Reserve Bank (RBI) had excluded Lakshmi Vilas Bank (LVB) from the Second Schedule of the RBI Act ter it was merged with DBS Bank India Ltd (08iL) in 2020. + A bank mentioned in the Second Schedule of the Reserve Bank of India Act is known as “Scheduled Commercial Bank’. + It has been excluded with effect from 27 November 2020. + RBI: » Governor - Shaktikante Das. > Headquarters - Mumbai. > Founded: 1 April 1935, Kolkata. ee amet eri PS Ta me CM cima hi cela) Doe eo Pe pokes Da [os rele Cheers ons Er) Download App ‘Question 10 View this Question Online > Tex reforms are concerned with the réforms'in government taxation and public expenditure policies which are collect 1. debit policy 3. fiscel policy 4. profit policy Answer (Detailed Solution Below) Option iscal policy Banking Awareness Question 10 Detailed Solution The correct answer is fiscal policy * Tax reforms are conoggaed with the féforms in government taxation and public expenditurepolicies which are cing. known as fiscal policy. + Fiscal policies are bei ‘rolled by the government, + The aim cf these policies is to target the total level of spending and the total composition of spending in en economy. + Monetary policies are policies used to either stimulate an economy or to check its growth. + Cash reserve ratio, the repo rate, reverse repo rate are some monetary policies. + It is being controlled by the Reserve bank. ee Perea tou) Start Complete Exam Preparation Cao ct ic Pane one Daca Dosey Download App resend Exe Question 11 View this Question Online > Who is the Governor of the Reserve Bank of India? (As of 2017) 1. Y.V. Reddy 2. Montek Singh Ss Das 4. Unjit Patel Answer (Detailed Solution Below) Option 4: Unjt Patel Banking Awareness Question 11 Detailed Solution The correct answer is Urjit Patel + The Governor of the Reserve Bank of India in 2017 was Urjit Patel. + He was appointed on September 4, 2016, and served until December 10/2018. + He was succeeded by Shaktikanta Das. © Key Points+ The Governor of Reserve Bank of Indias the'Ghief Executive Officer of the Central Bank of India and the Ex-officio Chairmanof its Central 80ard of Directors. + The RBI Governors are appointed by the government of India for a fixed time period and not elected. + The Indian note issued by &; Additional Informati jeserve Bank of India is signed by the Governor of the RBI. n * The first Governor of the Reserve Bank of India was a British banker, Sir Osborn Smith. * Sir C.D. Deshmukh was the first Indian Governor in the RBI governor. + The Reserve Bank of India established by the British Government in 1935, is the highest monetary authority of the nation. + Since its establishment, the organization has seen 25 people serving as the RB| Governor. col Re ia itl BCC Rr eo Pela me (MCU m cele liel) Giiets Oe sea Circe Download App Question 12 View this Question Online > Who is the Governor of Reserve Bank? 1. Unjit Patel 2. Dr. RaghuramRajan 3) A. Das 4. Anilkumar Sinha Answer (Detailed Solution Below) Option 3 : Shaktikanta Das Banking Awareness Question 12 Detailed SolutionThe correct answer is Shaktikanta Das © Key Points Shaktikanta Das is serving as the current & 25th governor of the Reserve Bank of India. He was earlier a member of the Fifteenth Finance*Commission and India’s Sherpa to the G20. Das is a retired 1980 batch Indian Administrative Service officer of Tamil Nadu cadre. & Additional Info + Urjit Patel was the fifth RBI governor to have resigned from his post before his term ended in September 2019. + He was the first RBI governor to state personal reasons as a driving factor for resigning. + Present Governor of RBI - Shaktikanta Das « There are 4 Deputy Governor of RBI + Deputy Governor of RBI - M Rajeshwar Rao, 8P Kanungo, MK Jain, and MD Patra. & Eee Eee) Start Complete Exam Preparation reac Bee osics Mock Tests iors tal Creereat ong case Download App Question 13 View this Question Online > Who has been appointed the Governer of RBI after the retirement of Sh. Y. V Reddy. 1. Dr. Indra Rangarajan 2. Dr. Dilip Sanghvi 3. Dr. Vijay L. Kelkar 4. Mr. D Subbarao Answer (Détailod Solution Bolow) Be : Mr. D SubbaraoBanking Awareness Question 13 Detailed Solution + Dr. Yaga Venugopal Reddy the twenty-first Governor, is a member of the Indien Administrative Service. He has spent most of his career in the areas of finance and planning. He served as Secretary (Banking) in Ministry of Finance, Additional Secretary, Ministry of Commerce, Joint Secretary in Ministry of Finance in Government of India, Principal Secretary, Government of Andhra Pradesh and had a a six year tenure as Deputy Governor of the Reserve Bank of India, Prior to his appointment as the Governor, Dr. Reddy was India's Executive Director on the Board of the International Monetary Fund, + Dr. Reddy has made significant policy contributions in the areas of financial sector reforms; trade finance; monitoring of balance of payments and exchange rate; extemal commercial borrowings; centre-state financial relations; regional planning; and public enterprise reform and hes been closely associated with institution building. He has several publications to his credit mainly in areas relating to finance, planning and public enterprises. + Dr. D. Subbarao took over on September 5, 2008 as the 22nd Governor of the Reserve Bank of India. Dr. Subbarao has been appointed for a three-year term. Prior to this appointment, Dr. Subbarao was the Finance Secretary in the Ministry of Finance, Government of India. + Dr. Subbarao has earlier been Secretary to the Prime Minister's Economic Advisory Council (2005-2007), lead economist in the World Bank (1999-2004), Finance Secretary to the Government of Andhra Pradesh (7993-98) and Joint Secretary in the Department of Economic we Affairs, Ministry of Finance, Government of India (1988-1993). Dr. Subbarao has written ¥ extensively on issues in public finance, decentralisation and political economy of reform: Additional info- 4 % + Dr. Raghuram Rajan assumed charge as the 23rd Governor of the Renae Ban® of India on September 4, 2013. Dr. Rajan was the Chief Economist and Director of Research atthe International Monetary Fund. + Dr. Rajan's research interests are in banking, corporate Meiglonomic development, especially the role finance plays in it. He has co-authofed Saving Capitalism from the Capitalists with Luigi Zingales in 2003. He then wrote Fault Lines: How Hidden Fractures Still Threaten the World Economy, for which hewas aWarded the Financial Times-Goldman Sachs prize for best business book in 2010. $ « Dr. Rajan is a member of the Thirty. He was the President of the American Finance Association in 2011 and is a the American Academy of Arts and Sciences. + Dr. Urjit R. Patel assumed charge as the twenty-fourth Governor of the Reserve Bank of India effective September 4, 2016 after serving as Deputy Governor since January 2013. + Dr. Patel has also served at the International Monetary Fund (IMF). He was on deputation from the IMF to the Reserve Bank during 1996-1997, and in that capacity he provided advice on development of the debt market, banking sector reforms, pension fund reforms, and evolution of the foreign exchange market. He was a Consultant to the Ministry of Finance (Department of Economic Affairs), Government of India, from 1998 to 2001. He has also had other assignments in the public and private sectors. + Shri Shaktikanta Das, former Secretary, Department of Revenue and Department of Economic Affairs, Ministry of Finance, Government of India assumed charge as the 25th Governor of the Reserve Bank of India effective December 12, 2018. + During his long tenure in the Ministry of Finance, Government of India, he was directly associated with the preparation of as many as 8 Union Budgets. Shri Das has also served as India’s Alternate Governor in the World Bank, Asian Development Benk (ADB), New Development Bank (NDB) and Asian Infrastructure Investment Bank (AIIB). He has represented India in international forum like the IMF, G20, BRICS, SAARC, etc. area aro CRED oct ATE Tame (CMe Cmte Tete Laced)ioe ee Mock Tests Gees Coes Fx Download App ‘Question 14 5 View this Question Ontine > Which of the following banks is NOT a.public sector bank? 1, Jammu and Kashmir Bank Lid. 2. Canara Bank’ 3. State Bank of India 4. Indusind Bank Answer (Detailed Solution Below) Option 4: Indusind Bank Banking Awareness Question 14 Detailed Solution A public sector bank is a type of bank in which the majority of the shareis held by the government whereas, in a private sector bank, the majority is held by stakeholders of the bank. BANK or raw Mfeduatrns Indusind Bank |, [Seb tumbai ; i Saly ; [State Bank of India Publitt955, [Mumbai canara Bank paso pengaturu Jammu and 1] October} ASCP Ikashmir Bank Ltd. JPublifi938 9 ORD ectPan foes aca eel resieacid Download App Question 15 , DS “View this Question Online > Which of the following functions of Reserve Bank of India are correct? |. Banker to Banks I. Currency Issuer 1. Only! i d A... 3. Both | andl 4. Only tl Answer (Detailed Solution Below) Option 3 : Both | and Il Banking Awareness Question 15 Detailed Solution The correct answer is Both I and Il. © Key Points + The Reserve Bank of India (RBI) is the central bank of India. + It is regarded as bank of banks and was,established on April 1, 1935. + Functions of the RBI lows: + Issuer of Curren > Banker to Governmen’ Custodian of Cash Reserves of Commercial Banks Controller of credit Custodian of country’s foreign reserves Lender of last resort Thus, we can say that the Reserve Bank of India is the banker of the banks and issuer of the currency.