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History of Banking General Knowledge Questions

Multiple Choice Practice Questions for Preparation of Banking Awareness Section of IBPS, SBI PO, RBI Grade B and other various Banking Examinations


The earliest evidence of Banking transactions in India comes from __:
[A]Vedic Era
[B]Maurya Era
[C]Gupta Era
[D]Medieval India

Vedic Era
Earliest evidence of Banking in India is found from the period of Vedic Civilization. During those days, loan deeds called rnapatra (ऋणपत्र) or rnalekhya (ऋणलेख्य) were prevalent. Interest rates as well as usury (सूदखोरी) was prevalent in Vedic India. The Vedic word Kusidin refers to an usurer (सूदखोर).This term is also found in Manusmriti.


In which year, Regional Rural Banks started working in India?



In which year, Indian Rupee was devalued for the first time?



On which date, RBI started working?
[A]1 January 1934
[B]1 January 1935
[C]1 April 1935
[D]31 March 1934

1 April 1935


In which year, Paper Currency Act was enacted by British Government of India?



Original headquarters of RBI were located at ___?
[D]New Delhi

Original headquarters of RBI were in Kolkata, but in 1937, it was shifted to Shahid Bhagat Singh Marg, Mumbai.


The Royal Commission on Indian Currency and Finance was also known as __:
[A]Hilton-Young Commission
[B]Hartog Commission
[C]Muddiman Committee
[D]Buttler Commission

Hilton-Young Commission


What was the initial share capital of Reserve Bank of India?
[A]Rs. 5 Crore
[B]Rs. 10 Crore
[C]Rs. 15 Crore
[D]Rs. 20 Crore

Rs. 5 Crore
RBI did not start as a Government owned bank but as a privately held bank without major government ownership. It started with a Share Capital of Rs. 5 Crore, divided into shares of Rs. 100 each fully paid up. In the beginning, this entire capital was owned by private shareholders. Out of this Rs. 5 Crore, the amount of Rs. 4,97,8000 was subscribed by the private shareholders while Rs. 2,20,000 was subscribed by central government.


Which among the following 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

Bank of India
Bank of India was the first Indian bank to open a branch outside India in London in 1946 and the first to open a branch in continental Europe at Paris in 1974.


Which of the following is the oldest Joint Stock bank of India?
[A]Allahabad Bank
[B]Bank of Baroda
[C]Patiala Bank
[D]Bank of India

Allahabad Bank
A bank that has multiple shareholders is called joint-stock bank. Oldest Joint Stock bank of India was Bank of Upper India that was established in 1863. But this bank failed in 1913. India’s Oldest Joint Stock Bank which is still working is Allahabad Bank. It is also known as India’s oldest public sector bank. It was established in 1865.