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Bankers Junction Quiz-1: History of Banking

1. In which year, the first bank of India “Bank of Hindustan” was established?
[A]1870
[B]1770
[C]1795
[D]1880

Answer

1770
The first bank of India is Bank of Hindustan established in 1770. This bank was established at Calcutta under European management. It was liquidated in 1830-32.

2. Which among the following are the correct locations of three presidency banks during British India?
[A]Calcutta, Madras, Bombay
[B]Surat, Calcutta, Madras
[C]Surat, Madras, Bombay
[D]Bombay, Calcutta, Surat

Answer

Calcutta, Madras, Bombay

3. 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

Answer

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.

4. 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

Answer

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.

5. 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

Answer

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.

6. 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

Answer

Hilton-Young Commission

7. Original headquarters of RBI were located at ___?
[A]Calcutta
[B]Bombay
[C]Madras
[D]New Delhi

Answer

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

8. In which year, Paper Currency Act was enacted by British Government of India?
[A]1862
[B]1861
[C]1852
[D]1875

Answer

1861

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

Answer

1 April 1935

10. In which year, Indian Rupee was devalued for the first time?
[A]1965
[B]1966
[C]1968
[D]1971

Answer

1966

11. In which year, Regional Rural Banks started working in India?
[A]1970
[B]1975
[C]1978
[D]1981

Answer

1975

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

Answer

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.

13. The liberalisation of Indian banking and regulation was done first on the basis of recommendations of which committee?
[A]Narasimham Committee
[B]A Ashok Committee
[C]Saraiya Committee
[D]Khusro Committee

Answer

Narasimham Committee
The liberalisation of Indian banking and regulation was done on the basis of recommendations of Narasimham Committee in 1991. The purpose of the committee was to enhance efficiency, productivity and profitability of banks.

14. In which year, the nationalization of subsidiary banks of the State Bank of India (SBI) was done?
[A] 1955
[B] 1956
[C] 1959
[D] 1980

Answer

1959
In 1959, State Bank of India (subsidiary) act was passed. As per the act, seven subsidiary banks of the State Bank of India (SBI) were nationalized as a major process of nationalization. The seven subsidiary banks are State Bank of Bikaner and Jaipur (SBBJ), State Bank of Hyderabad (SBH), State Bank of Mysore (SBM), State Bank of Patiala (SBP), State Bank of Indore, State Bank of Saurashtra and State Bank of Travancore (SBT).

15. What was the name of State Bank of India (SBI) before it was created by SBI Act?
[A]Imperial Bank of Hindustan
[B]Imperial Bank of Bengal
[C]Imperial Bank of Madras
[D]Imperial Bank of India

Answer

Imperial Bank of India
The Presidency banks viz. Bank of Bengal, Bank of Bombay and Bank of Madras amalgamated on January 27, 1921 and the Imperial Bank of India was formed under the Imperial Bank of India Act, 1920. After Independence, the Imperial Bank of India was nationalized under the State Bank of India Act, 1955 and State Bank of India (SBI) was formed.

Comments

  • vikram kengarkar
    Reply

    Thanks and keep it up..

  • parminder kaur
    Reply

    nice,informative questions

    • bhart jaipal

      good question for exam

  • rajashree behera
    Reply

    very important gk.thanks

  • chhandacharanbiswal
    Reply

    it is the foundation of banking preperatory, beacuse it is the first question of banking entrance

  • shweta tiwari
    Reply

    it is very helpfull for me thanx

  • Noyal Ghalay
    Reply

    Thank You

  • dhiraj gupta
    Reply

    thanks we need this

  • sakshi
    Reply

    helped a lot thanks :-)

  • Harish s pagadavar
    Reply

    it gives a lot of information

  • Nitin Harish Rajput
    Reply

    it is really too good and helpful

  • sneha s kudnekar
    Reply

    Very interesting and knowledgeable

  • ankita
    Reply

    thankyou but there should be more ques ….

  • ashwani
    Reply

    NICE WORK :)

  • madhukeshav
    Reply

    very essential information thank u

  • praveen
    Reply

    Thank you sir , realy it is good work and very help full for upcoming exams.

    and one thing which i like more in GKtody that is answer with some explanation related to question which is help to know more about particular topic, keep it up

  • Aleema Khan
    Reply

    nice

  • liza
    Reply

    thanks alot for updating banking gk….

  • r krishns
    Reply

    Good questions and nice job

  • sureshkumar
    Reply

    very useful information’
    thank you

  • dinesh saini
    Reply

    Very thanks sir, i m proud on you

  • nireesha
    Reply

    Superb…nice questions……