Frequently Asked Questions in Bank Exams

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1	In which section Non-Scheduled Commercial Banks are defined?
	Clause (c) of section 6 of the Banking Regulation Act, 1949 (10 of 1949)
	Clause (c) of section 5 of the Banking Regulation Act, 1949 (11 of 1949)
	Clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949)
	Clause (c) of section 6 of the Banking Regulation Act, 1949 (10 of 1949)
	Right Answer: 3 Non-scheduled bank in India means a banking company as defined in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949), which is not a scheduled bank. Question ID: 109

2	Pairs of Financial Institutions and year of establishments are given hereunder. Which of the following is wrongly paired?
	RBI - 1949
	IFCI - 1948
	IDBI -1964
	SIDBI - 1990
	Right Answer: 1 Reserve Bank of India was establised in 1935 and nationalised in 1949. Others are correct. Question ID: 122

3	What is the full name of UPI, popular money transfer system in India?
	Universal Payments Interface
	Universal Payments on Internet
	Unified Payments Interface
	Unified Payments on Internet
	Right Answer: 1 The unified payments interface or the UPI is an interface via which you can transfer money between bank accounts across a single window. Question ID: 433

4	When did the Government of India set up Regional Rural Banks (RRBs) by issuing oridinance?
	February 2, 1975
	August 15, 1976
	October 2, 1975
	September 26, 1976
	Right Answer: 3 The Government of India set up Regional Rural Banks (RRBs) on October 2, 1975 by issuing oridinance. Later RRB act 1976 was passed by parliament on 26-09-1976. Question ID: 110

5	Which of the following is not an alternative delivery channel in banking?
	UPI
	Mobile Banking
	Debit & Credit Cards
	NPCI
	Right Answer: 4 National Payments Corporation of India (NPCI), enabling digital payments and settlement systems in India, is an initiative of RBI and IBA. Question ID: 464

6	Which of the following statement is false?
	Rupay Debit cards, prepaid cards are accepted at POS
	Rupay Cards are accepted at ATMs and Mini ATMs
	Rupay Cards are accepted for E.Commerce
	Rupay Cards are expensive
	Right Answer: 4 RuPay is the Indian domestic card payment network being set up by National Payments Corporation of India (NPCI) at the behest of banks in India. Rupay reduces overall transaction cost for the banks in India by introducing competition to international card Question ID: 136

7	Who was the first Indian appointed as the Governor of Reserve Bank of India?
	M.Narasimham
	Dr.Shanmugam Chettiyar
	Sir.Benegal Rama Rau
	Sir C.D.Desh Mukh
	Right Answer: 4 Sir C.D. Deshmukh, CIE, ICS, was an Indian civil servant and the first Indian to be appointed as the Governor of the Reserve Bank of India in 1943 by the British Raj authorities. Question ID: 528

8	Which of the following institution has introduced Rupay Cards in India?
	Reserve Bank of India
	National Payment Corporation of India
	State Bank of India
	Indian Banker's Association
	Right Answer: 2 RuPay is the Indian domestic card payment network being set up by National Payments Corporation of India (NPCI) at the behest of banks in India. This project had been conceived by Indian Banker's Association and has the approval of Reserve Bank of India. Question ID: 134

9	State Bank of India Day is observed on which of the following day?
	30 April
	1 July
	25 October
	30 November
	Right Answer: 2 State Bank of India was founded on 1 July, 1955. State Bank of India observes July 1st as its Bank Day. Question ID: 125

10	Which of the following is not a Private Sector Bank?
	ICICI
	AXIS
	Repco Bank
	City Union Bank
	Right Answer: 3 Repco Bank is a cooperative bank established by the Government of India in 1969 to improve financial needs of repatriates from neighbouring countries mainly from Sri Lanka and Burma. Question ID: 116

11	Which of the following is the role of NABARD?
	Providing refinance to lending institutions in rural areas
	Bringing about or promoting institutional development and
	Evaluating, monitoring and inspecting the client banks
	All the above
	Right Answer: 4 National Bank for Agriculture and Rural Development is an apex supervisory body for overall supervision of regional rural banks and apex cooperative banks in India. It is under the jurisdiction of Ministry of Finance, Government of India. Question ID: 121

12	Where is Asian Development Bank headquartered in?
	Tokyo
	Manila
	London
	Dhaka
	Right Answer: 2 The Asian Development Bank is a regional development bank established on 19 December 1966, which is headquartered in Metro Manila, Philippines. Question ID: 137

13	The acronym NEFT stands for
	National Electrical Funds Transfer
	National Electronic Funds Transaction
	National Electronic Funds Transfer
	National Electronic Financial Transfer
	Right Answer: 3 National Electronic Funds Transfer (NEFT) NEFT is electronic funds transfer system, which facilitates transfer of funds to other bank accounts in other bank branches across the country. Question ID: 142

14	Where are the head quarters of Repco Bank?
	Gauhathi
	Chennai
	Puducherry
	Cochi
	Right Answer: 2 Repco Bank is a cooperative bank established by the Government of India in 1969 to improve financial needs of repatriates from neighbouring countries mainly from Sri Lanka and Burma. Question ID: 112

15	Where is IDRBT located?
	Hyderabad
	Pune
	Lucknow
	Mangalore
	Right Answer: 1 The Institute for Development & Research in Banking Technology (IDRBT) is an engineering training institution exclusively focused on banking technology. Established by the Reserve Bank of India (RBI) in 1996 at Hyderabad. Question ID: 624

16	Which of the following are not the Scheduled Commercial Banks?
	Urban Co-Operative Banks
	Regional Rural Banks
	State Bank of India and Associates
	Nationalised Banks
	Right Answer: 1 Scheduled Banks in India constitute those banks which have been included in the Second Schedule of Reserve Bank of India(RBI) Act, 1934. Question ID: 123

17	Which of the following statement is not true in respect of Debit Card features?
	Debit Cards can not be used at POS
	Online payments can be made using Debit Cards
	Debit Card holder has to maintain balance in the account.
	Debit Card holder can draw cash from any ATM
	Right Answer: 1 A debit card (also known as a bank card or check card) is a plastic payment card that provides the cardholder electronic access to his or her bank account(s) at a financial institution. Debit Cards can be used at Point of Sales (POS) for payments. Question ID: 127

18	Which of the following statement is false?
	Banking Regulation Act, 1949
	Negotiable Instrument Act, 1881
	Reserve Bank Of India Act, 1935
	State Bank of India Act, 1955
	Right Answer: 3 Reserve Bank of India Act, 1934 is the legislative act under which the Reserve Bank of India was formed on 1st April, 1935. Question ID: 126

19	Which of the following is not a right combination?
	GDP: Gross Domestic Product
	CRR: Cash Reserve Ratio
	NPCI: National Payment Corporation of India
	SLR: Statutory Limit Ratio
	Right Answer: 4 SLR: Statutory liquidity ratio refers to the amount that the commercial banks require to maintain in the form of gold or govt. approved securities before providing credit to the customers. Question ID: 130

20	Under which act, holidays are declared for Banking and Financial Institutions in India?
	Banking Regulation Act, 1949
	Reserve Bank Of India Act, 1935
	Negotiable Instruments Act, 1881
	None
	Right Answer: 3 Bank holidays are declared as per Sec.25 of NI Act, 1881 with specific reference to payment of negotiable instruments to be paid on the previous working day. Question ID: 140

Total Questions	Questions Answered	Right Answers	Wrong Answers

Banking And Finance