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Bankers Junction Quiz 2: Structure of Banking in India Part-1

1. Nainital Bank is a subsidiary of which of the following banks?
[A]Bank of Baroda
[B]Allahabad Bank
[C]Bank of India
[D]Union Bank

Answer

Bank of Baroda

2. What is the share of the Foreign Banks in the branch network in India?
[A]Less than 1 %
[B]Around 5%
[C]Around 3%
[D]Around 6%

Answer

Less than 1%
Foreign Banks account for less than 1% of the total branch network in the country.

3. For the regional rural banks, which among the following is the correct share of Central, State and Sponsor Bank?
[A]50%, 40%, 10%
[B]50%, 35%, 15%
[C]50%, 15%, 35%
[D]40%, 50%, 10%

Answer

50%, 15%, 35%
In RRBs, 50% share shall be held by the central government, 15% by the concerned state government and 35% by the sponsor bank. The RRB amendment act 2014 has allowed the RRBs to raise their capital from sources other than the central and state governments, and sponsor banks. In such a case, the combined shareholding of the central government and the sponsor bank cannot be less than 51%. Further, if the shareholding of the state government in the RRB is reduced below 15%, the central government would need to consult the concerned state government.

4. Which of the following bodies regulates the Regional Rural Banks?
[A]RBI
[B]NABARD
[C]Department of Rural Development
[D]State Government

Answer

NABARD
They are regulated by NABARD; which is a subsidiary of RBI. Other banks are regulated by RBI directly.

5. In which year, Cooperative Societies Act was enacted?
[A]1910
[B]1912
[C]1913
[D]1915

Answer

1912

6. Which of the following rural cooperatives in India work at village or grassroots level?
[A]State Cooperative Banks
[B]District Central Cooperative Banks
[C]Primary Agricultural Cr Societies
[D]Primary Cooperative Agriculture and Rural Development Banks (PCARDBS)

Answer

Primary Agricultural Cr Societies

7. The owners of the cooperative bank are also its __:
[A]Customers
[B]Debtors
[C]Cr ors
[D]All of above

Answer

All of above
A cooperative is jointly owned enterprise in which same people are its customers who are also its owners. Thus, basic difference between scheduled commercial banks and scheduled cooperative banks is in their holding pattern.

8. In the constitution of India, ‘Cooperatives’ come under which among the following in the seventh schedule?
[A]Union List
[B]State List
[C]Concurrent List
[D]None of them

Answer

State List
The item “Cooperative Societies” is a State Subject in the 7th Schedule via entry 32 of the State List in the Constitution of India.

9. Bank branches are established under which section of Banking Regulations Act, 1949?
[A]Section 20
[B]Section 23
[C]Section 22
[D]Section 10

Answer

Section 23
Branch banking involves business of banking via branches. The branches are set up under Section 23 of Banking Regulations Act, 1949.

10. In which country, the Unit Banking System originated?
[A]United States
[B]United Kingdom
[C]France
[D]Spain

Answer

United States
Unit banking is a system of banking which originated in US. It is a limited way of banking where banks operate only from a single branch (or a few branches in the same area) taking care of local community.

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