Frequently Asked Questions in Bank Exams

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1	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

2	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

3	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

4	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

5	What is the maximum limit that DICGC insures all bank deposits, such as saving, fixed, current, recurring deposits in India?
	Rs.50,000
	Rs.1,00,000
	Rs.5,00,000
	Rs.10,00,000
	Right Answer: 3 A maximum of ?5,00,000 (after the budget of 2020-21) is insured for each user for both principal and interest amount. If the customer has accounts in different branches of the same bank, all of those accounts are insured to a maximum of ?5,00,000 each. Question ID: 135

6	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

7	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

8	Who will provide the Insurance for bank deposits such as fixed, savings, current and recurring deposits?
	DICGC
	RBI
	GIC
	National Insurance Corporation
	Right Answer: 1 Deposit Insurance and Credit Guarantee Corporation ( DICGC) is a subsidiary of Reserve Bank of India. It was established on 1961 under Deposit Insurance and Credit Guarantee Corporation Act, 1961. Question ID: 128

9	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

10	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

11	The acronym NABARD stands for?
	Nationalised Agricultural Bank for Regional Development
	National Bank for Agricultural And Rural Development
	National Bank for Agricultural And Regional Development
	None
	Right Answer: 2 NABARD is set up as an apex Development Bank with a mandate for facilitating credit flow for promotion and development of agriculture, small-scale industries, cottage and village industries, handicrafts and other rural crafts. Question ID: 124

12	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

13	Which Act empowered the Reserve Bank of India (RBI) to regulate, control, and inspect the banks in India?
	BR Act 1935
	RBI Act 1935
	BR Act 1949
	None
	Right Answer: 3 In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of India (RBI) to regulate, control, and inspect the banks in India. Question ID: 108

14	When was Reserve Bank of India established?
	01 April, 1934
	01 April, 1935
	01 Jan, 1949
	01 Jan, 1951
	Right Answer: 2 The Reserve Bank of India, the nation's central bank, began operations on April 01, 1935. The RBI was nationalized on January 1, 1949 under the terms of the Reserve Bank of India (Transfer to Public Ownership) Act. Question ID: 73

15	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

16	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

17	Which committee recommended the formation of NABARD?
	B.Sivaraman Committee
	B. Narasimham Committee
	Goyal Committee
	Gosh Committee
	Right Answer: 1 The Committee to Review Arrangements for institutional Credit for Agriculture and Rural Development(CRAFICARD) set up by the RBI under the chairmanship of Shri B Sivaraman recommended for formation of NABARD. Question ID: 139

18	Who contributes the share capital to Regional Rural Banks?
	GOI 50%, Sponsored Bank 35% and State Government 15%
	RBI 50%, Sponsored Bank 35% and State Government 15%
	GOI 50%, Sponsored Bank 15% and State Government 35%
	NABARD 50%, Sponsored Bank 35% and State Government 15%
	Right Answer: 1 Capital share being 50% by the central government, 15% by the state government and 35% by the sponsored bank. Question ID: 113

19	Who will appoint the Banking Ombudsman to redress customer complaints against certain deficiencies in banking Services?
	Ministry of Finance
	Reserve Bank of India
	Chief Justice, Supreme Court
	Chief Justice, High Court of a state
	Right Answer: 2 The Banking Ombudsman is a person appointed by the Reserve Bank of India to redress customer complaints against certain deficiency in banking Services. RBI may appoint one of its Officers not below the rank of Chief General Manager of RBI. Question ID: 141

20	Which of the following statement is false?
	Interest on Savings Bank Account is very low.
	Minimum balance in Basic Savings Bank Account is zero.
	Savings Bank Account can be opened by a non personal customer if it is a non profit organisation.
	Fixed Term Deposits can be opened for a period of 12 years.
	Right Answer: 4 Maximum period for opening a Fixed Term Deposit is 10 years. Question ID: 131

Total Questions	Questions Answered	Right Answers	Wrong Answers

Banking And Finance