Banking Awareness – 2020 for IBPS, RBI, SBI, NABARD and other Bank Examinations
Welcome to GKToday’s Banking Awareness Section. This section shows 100 random questions from GKToday’s Banking Awareness MCQs.
A chapterwise course of all the 925 questions divided into 88 Chapters in Banking Awareness is Available in
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21. In which year the Royal Commission on Indian Currency and Finance recommended the creation of a central bank for India?
[A] 1926
[B] 1927
[C] 1928
[D] 1929
Show Answer
Correct Answer: A [1926]
Notes:
In 1926, the Royal Commission on Indian Currency and Finance recommended the creation of a central bank for India.
22. What was the paidup capital of RBI when it commenced operations as India’s central bank on April 1 1935?
[A] Rs 1 crore
[B] Rs 5 crore
[C] Rs 10 crore
[D] Rs 100 crore
Show Answer
Correct Answer: B [Rs 5 crore]
Notes:
The Reserve Bank commenced operations as India’s central bank on April 1 1935 as a private shareholders’ bank with a paid up capital of rupees five crores.
23. When was the RBI Act enacted?
[A] 1st April 1935
[B] 28th November 1934
[C] 6th March 1934
[D] 31st March 1935
Show Answer
Correct Answer: C [ 6th March 1934 ]
Notes:
Reserve Bank of India Act, 1934 was enacted on 6 March, 1934 to constitute the Reserve Bank of India and commended from April 1, 1935. It provides for laws for the supervision of banking firms in India and other related matters.
24. Who regulates the District Central Cooperative Banks in India?
[A] RBI
[B] State Government
[C] Central Government
[D] SEBI
Show Answer
Correct Answer: A [RBI]
Notes:
Reserve Bank of India (RBI) regulates and supervises the banking functions of State Cooperative Banks (StCBs)/District Central Cooperative Banks (DCCBs)/Urban Cooperative Banks (UCBs) under the various provisions of the Banking Regulation Act, 1949.
25. What is the full form of FEMA?
[A] Fixed Entity Management Act
[B] Foreign Exchange Management Act
[C] Foreign Entity Management Act
[D] Finance Establishment Management Act
Show Answer
Correct Answer: B [Foreign Exchange Management Act]
Notes:
The Foreign Exchange Management Act (FEMA) was enacted in 1999 and effectively repudiated the Foreign Exchange Regulation Act (FERA) of 1973.
26. Which was the first bank to introduce ATM in India?
[A] IDBI
[B] UTI
[C] ICICI
[D] HSBC
Show Answer
Correct Answer: D [HSBC]
Notes:
The HSBC i.e. Hongkong and Shanghai Banking Corporation was the first bank to introduce the ATM in India way back in 1987.
27. 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.
28. In which year Reserve Bank of India introduced cheque truncation system?
[A] 2008
[B] 2009
[C] 2010
[D] 2011
Show Answer
Correct Answer: A [2008]
Notes:
In 2008, the Reserve Bank of India introduced cheque truncation system, to convert checks from physical form to electronic form when sending to the paying bank.
29. 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.
30. What do we call the banks which provide capital to the firms in the form of shares and engage in underwriting of stocks?
[A] Commercial Banks
[B] Universal Banks
[C] Merchant Banks
[D] IFI
Show Answer
Correct Answer: C [Merchant Banks]
Notes:
Merchant Banks are those banks which provide capital to the firms in the form of shares and engage in underwriting of stocks etc.
