Frequently Asked Questions in Bank Exams

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1	Which of the following is not a Negotiable Instrument?
	Fixed Deposit Receipt
	Demand Draft
	Cheque
	Bill of Exchange
	Right Answer: 1 Fixed Deposit Receipts doesn't have the specifications as defined in Negotiable Instruments Act, 1881. Question ID: 111

2	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

3	Lead Bank Scheme was implemented in 1969. Which Committee proposed the Lead Bank Scheme?
	Narasimham Committee
	M. Damodaran Committee
	Dr Gadgil Committee
	Goyal Committee
	Right Answer: 3 Lead Bank Scheme is launched in Dec. 1969 implementing the recommendations of Pro.Dr Gadgil Committee, aimed at bringing involvement of banks in the planned process of rural development. Question ID: 119

4	Which of the following is not the function of Reserve Bank of India?
	Monetary Management
	Maintaining Foreign Exchange Reserves
	Government Debt Management
	Regulating Diesel and Petroleum prices
	Right Answer: 4 RBI functions comprise monetary management, foreign exchange and reserves management, government debt management, financial regulation and supervision, apart from currency management and acting as banker to the banks and to the Government. Question ID: 118

5	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

6	How many banks were nationalised in the second phase of nationalisation in 1980?
	3
	4
	5
	6
	Right Answer: 4 Six banks, Oriental Bank of Commerce, Corporation Bank, Andhra Bank, Punjab & Sindh Bank, Vijaya Bank and New Bank of India were nationalized in 1980. Question ID: 72

7	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

8	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

9	Which of the following is associated with Yellow Revolution in India?
	Oil Seed Production
	Diary Development
	Housing Development
	Women Education
	Right Answer: 1 Yellow Revolution refers Oil Seed Production, Green - Food Grains, Golden - Fruits and Apples, Black/Brown - Non conventional Energy, Silver - Eggs, Red - Meet and Tamota, Round - Potato, Grey - Fertilisers Question ID: 120

10	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

11	In which year NABARD Act was enacted by the parliament?
	1968
	1976
	1981
	1986
	Right Answer: 3 NABARD ACT was enacted in 1981. Shri B Sivaraman committee recommended the formation of NABARD on 28 November, 1979. Question ID: 138

12	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

13	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

14	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

15	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

16	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

17	Which is the first e-wallet in India?
	PayTm wallet
	Mobiquick
	Oxigen wallet
	Wallet 365
	Right Answer: 3 Oxigen wallet is the first ever e-wallet was launched in India in July, 2004. Second wallet365 launched in 2006. Question ID: 474

18	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

19	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

20	When was State Bank Of India constituted?
	1st July, 1955
	1st June, 1956
	2nd August, 1958
	3rd August, 1958
	Right Answer: 1 On 30 April 1955, the Imperial Bank of India became the State Bank of India. An act was accordingly passed in Parliament in May 1955 and the State Bank of India was constituted on 1 July 1955. Question ID: 107

Total Questions	Questions Answered	Right Answers	Wrong Answers

Banking And Finance