Banking & General Financial Awareness
Banking & General Financial Awareness Multiple Choice Questions (MCQs) and Answers with explanation for All Banking Exams of 2024-25 such as IBPS Bank PO, IBPS Bank Clerical, RRB PO and Clerical, SBI PO and SBI Clerical, IBPS Recruitments, RBI Grade B and RBI Banking Examinations.
1. Which of the following is not the key element of the KYC Policy?
[A] Customer Acceptance Policy
[B] Customer Identification Procedures
[C] Monitoring of Transactions
[D] None of the Above
Show Answer
Correct Answer: D [None of the Above]
Notes:
As per RBI guidelines all banks are required to formulate a KYC Policy with the approval of their respective boards. The KYC Policy consists of the following four key elements: 1) Customer Acceptance Policy 2) Customer Identification Procedures 3) Monitoring of Transactions 4) Risk Management.
2. For how many days in a year a person should reside in India before applying for the enrolment of Aadhar Card?
[A] 182 days
[B] 179 days
[C] 132 days
[D] 366 days
Show Answer
Correct Answer: A [182 days]
Notes:
A person should reside in India for 182 days in a year before applying for the enrolment of Aadhar Card. To obtain an Aadhaar number, an individual has to submit following:
Biometric (photograph, finger print, iris scan)
Demographic (name, date of birth, address) information
3. What is the status of Interest rate on Personal Loans as compared to the Home and Car Loans?
[A] Higher than Home and Car Loans
[B] Lower than Home and Car Loans
[C] Equal to Home and Car Loans
[D] Can not be compared
Show Answer
Correct Answer: A [Higher than Home and Car Loans]
Notes:
Being unsecured loans, personal loans have a higher interest rate than those on secured ‘home and car’ loans. At present, many leading banks and NBFCs offer such loans at interest rates of as low as 11.49%.
4. What is the time period for a long term corporate loan?
[A] 3-15 Years
[B] 3-23 Years
[C] 3-30 Years
[D] Unlimited time period
Show Answer
Correct Answer: C [3-30 Years]
Notes:
A form of loan that is paid off over an extended period of time greater than 3 years is termed as a long-term loan. This time period can be anywhere between 3-30 years.
5. When did the Banking Regulation Act, 1949 become applicable to the state of Jammu & Kashmir?
[A] 1949
[B] 1970
[C] 1956
[D] 1966
Show Answer
Correct Answer: C [1956]
Notes:
Initially, this act was passed as Banking Companies Act, 1949 and it was applicable to whole of India except Jammu & Kashmir. It became applicable to Jammu and Kashmir from 1956.
6. Which of the following is a cooperative bank in India?
[A] Punjab & Maharashtra Co-op Bank
[B] Bharati Sahakari Bank
[C] All of the above
[D] Cosmos Bank
Show Answer
Correct Answer: C [All of the above]
Notes:
Cosmos Bank, SVC Bank, and Janata Sahakari Bank are all multi-state cooperative banks in India, operating under the Banking Regulation Act, 1949 and the Multi-State Cooperative Societies Act, 2002.
7. Which state has the highest number of RRBs in India?
[A] Uttar Pradesh
[B] Bihar
[C] West Bengal
[D] Maharashtra
Show Answer
Correct Answer: A [Uttar Pradesh]
Notes:
Uttar Pradesh has the highest number of 36 RRBs, followed by, Madhya Pradesh with 19 and Bihar with 16 RRBs. There are no RRBs in Goa and Sikkim.
8. What was the objective behind the Banking correspondent scheme?
[A] Taking banking to the remotest areas
[B] Helping in the process of Financial inclusion
[C] Both a and b
[D] None
Show Answer
Correct Answer: C [Both a and b]
Notes:
The objective behind the Banking correspondent scheme was to aid the process of financial inclusion and consequently take banking to the remotest areas of the country and make them bankable.
9. Which of the following is not a subsidiary of Reserve Bank of India?
[A] Bharatiya Reserve Bank Note Mudran Private Limited
[B] NABARD
[C] State Bank of India
[D] National Housing Bank
Show Answer
Correct Answer: C [State Bank of India]
Notes:
The subsidiaries of RBI are: Deposit Insurance and Credit Guarantee Corporation (DICGC) is a subsidiary of Reserve Bank of India. National Housing Bank Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL) NABARD
10. In which year did RBI assume currency issuing powers from Controller of Currency?
[A] 1928
[B] 1935
[C] 1947
[D] 1950
Show Answer
Correct Answer: B [1935]
Notes:
On 1st April 1935, RBI took over the currency function from Controller of Currency as per Section 22 of RBI Act, 1934, giving RBI sole authority to issue banknotes in India.
