21. Which of the following entities are not covered under the Banking Regulation Act 1949?
[A] Public Sector banks
[B] Cooperative Banks
[C] Primary Agricultural Credit Society
[D] All of the above
Show Answer
Correct Answer: C [Primary Agricultural Credit Society]
Notes:
Primary Agricultural Credit Society and cooperative land mortgage banks are excluded from the Banking Regulation Act 1949.
22. How many banks were Nationalised in 1969 under the Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1969?
[A] 15
[B] 14
[C] 13
[D] 11
Show Answer
Correct Answer: B [14]
Notes:
The Government of India issued the Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1969 and nationalised the 14 largest commercial banks namely Punjab National Bank, Allahabad Bank and others.
23. Which of these is a Priority Sector for Lending as specified by the RBI?
[A] Agriculture
[B] Education
[C] Housing
[D] All of the above
Show Answer
Correct Answer: D [All of the above]
Notes:
Priority Sector Lending means that the banks have to make sure that they lend to few specific sectors like agriculture and allied activities, micro and small enterprises, poor people for housing, students for education and other low income groups and weaker sections.
24. What is the current deposit limit of Payment banks?
[A] Rs 2 lakhs
[B] Rs 1 lakh
[C] Rs 50000
[D] Rs 5 lakhs
Show Answer
Correct Answer: B [Rs 1 lakh]
Notes:
Payment banks can accept a restricted deposit, which is currently limited to ₹1 lakh per customer. Payment banks offer both current and savings accounts.
25. Which was the first public bank to introduce credit cards?
[A] ICICI
[B] HDFC
[C] Central Bank of India
[D] SBI
Show Answer
Correct Answer: C [Central Bank of India]
Notes:
Central Bank of India was the first public bank to introduce credit cards. ICICI bank was the first to introduce Internet banking Facility.
26. What do we call the type of banking carried out by the non-bank financial intermediaries which provide services similar to those of traditional commercial banks?
[A] Social Banking
[B] Mixed Banking
[C] Shadow banking
[D] Narrow banking
Show Answer
Correct Answer: C [Shadow banking]
Notes:
Shadow banking refers to all the non-bank financial intermediaries that provide services similar to those of traditional commercial banks.
27. What is Islamic Banking?
[A] Banking in which lending is prohibited
[B] Banking in Muslim countries
[C] Banking consistent with the principles of sharia
[D] None of the above
Show Answer
Correct Answer: C [Banking consistent with the principles of sharia]
Notes:
Islamic banking is banking or banking activity that is consistent with the principles of sharia and its practical application through the development of Islamic countries.
28. What is the banking, where all banking operations are online, known as?
[A] Virtual Banking
[B] Retail Banking
[C] Mixed Banking
[D] Social Banking
Show Answer
Correct Answer: A [Virtual Banking]
Notes:
Virtual banking is performing all banking operations online. This has served as a great revolution in banking market as banks have to continuously struggle for perfection to live up to competition and stay ahead of it.
29. What is the type of banking which involves banking services for high net-worth clients like corporate, commercial banks, mid-size companies etc?
[A] Retail Banking
[B] Wholesale Banking
[C] Narrow Banking
[D] Merchant Banking
Show Answer
Correct Answer: B [Wholesale Banking]
Notes:
Wholesale banking involves banking services for high net-worth clients like corporate, commercial banks, mid-size companies etc.
30. What is the banking known as when a group of persons come together to own and control three or more independently chartered banks?
[A] Chain banking
[B] Unit banking
[C] Merchant banking
[D] None of the above
Show Answer
Correct Answer: A [Chain banking]
Notes:
Chain banking system refers to the type of banking when a group of persons come together to own and control three or more independently chartered banks.
