01 - History of Banking

1. The Vedic word Kusidin refers to _?

Answer: An usurer

The Vedic word Kusidin refers to an usurer. Usury was prevalent in India since ancient times.

2. In which year, the first bank of India "Bank of Hindustan" was established?

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.

3. What were the correct locations of three presidency banks during British India?

Answer: Calcutta, Madras, Bombay

British East India Company had set up various factories or trading posts in India with the permission of the local Mughal emperors. In this process, they had established three presidency towns viz. Madras in 1640, Bombay in 1687 and Bengal Presidency in 1690.

4. Which is the oldest Joint Stock 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.

5. At which place, East India Company established its first presidency bank?

Answer: Calcutta

Bank of Calcutta was established in 1806; it was renamed in 1809 as Bank of Bengal. On 15 April 1840, Bank of Bombay established. On 1 July 1843, Bank of Madras established.

6. What was the name of State Bank of India (SBI) before it was created by SBI Act?

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.

7. Which was the first bank to open a branch on foreign soil?

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.

8. Which of the following was first bank managed by Indians?

Answer: Punjab National Bank

The first bank purely managed by Indians was Punjab National Bank, established in Lahore in 1895. The Punjab national Bank has not only survived till date but also is one of the largest banks in India.

9. In which year, Paper Currency Act was enacted by British Government of India?

Answer: 1861

Paper Currency Act was enacted by British Government of India in 1861.

10. Which was the first bank to be wholly owned and run by Indians?

Answer: Central Bank of India

First Indian commercial bank which was wholly owned and managed by Indians was Central Bank of India which was established in 1911.

1. The Vedic word Kusidin refers to _?
[A] A banker
[B] An usurer
[C] A farmer
[D] A trader
2. In which year, the first bank of India “Bank of Hindustan” was established?
[A] 1870
[B] 1770
[C] 1795
[D] 1880
3. What were 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
4. Which is the oldest Joint Stock bank of India?
[A] Allahabad Bank
[B] Bank of Baroda
[C] Patiala Bank
[D] Bank of India
5. At which place, East India Company established its first presidency bank?
[A] Madras
[B] Calcutta
[C] Bombay
[D] Surat
6. 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
7. Which 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
8. Which of the following was first bank managed by Indians?
[A] Bank of Baroda
[B] Bank of India
[C] Punjab National Bank
[D] Central Bank of India
9. In which year, Paper Currency Act was enacted by British Government of India?
[A] 1850
[B] 1861
[C] 1870
[D] 1858
10. Which was the first bank to be wholly owned and run by Indians?
[A] Allahabad Bank
[B] Bank of Baroda
[C] Bank of India
[D] Central Bank of India
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