Banking & General Financial Awareness
Banking & General Financial Awareness Multiple Choice Questions (MCQs) and Answers with explanation for All Banking Exams of 2020-2021 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 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
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Correct Answer: A [ Bank of India ]
Notes:
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.
2. What is the full form of PCR?
[A] Public Control Register
[B] Public Control Regulations
[C] Public Credit Registry
[D] Prompt Corrective Regulations
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Correct Answer: C [Public Credit Registry]
Notes:
PCR stands for Public Credit Registry. It is a digital registry of authenticated granular credit information and will work as a financial information infrastructure providing access to various stakeholders and enrich the existing credit information ecosystem.
3. What is the full form of CRISIL?
[A] Credit Rating Information Services of India Limited
[B] Credit Rating Investment Services of India Limited
[C] Credit Rating Indian Services for Investment and Liability
[D] Credit Rating Insight Services of India Limited
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Correct Answer: A [Credit Rating Information Services of India Limited]
Notes:
CRISIL stands for Credit Rating Information Services of India Limited. It is a global analytical company providing ratings, research, and risk and policy advisory services. CRISIL’s majority shareholder is Standard & Poor’s.
4. What is the full form of ELSS?
[A] Equity Linked Saving Scheme
[B] Equity Linking Saving System
[C] Equitable Linked Saving System
[D] None of the above
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Correct Answer: A [Equity Linked Saving Scheme]
Notes:
An Equity Linked Savings Scheme (ELSS) is an open-ended Equity Mutual Fund that help to save tax. It also gives an opportunity to grow money. It qualifies for tax exemptions under section 80C of the Indian Income Tax Act.
5. Which bank has the lowest interest rate for Home loans in India?
[A] SBI
[B] HDFC
[C] ICICI
[D] RBI
Show Answer
Correct Answer: A [SBI]
Notes:
SBI has the lowest interest rate for the housing loans in India with a range of interest between 8.50-8.75% of the loan amount.
6. Which of the following institute is the regulator of the housing finance in India?
[A] RBI
[B] CIBIL
[C] SEBI
[D] NHB
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Correct Answer: D [NHB]
Notes:
National Housing Bank is the Housing finance regulator in India. The main aim of NHB is to promote a sound, healthy, viable and cost effective housing finance system to cater to all segments of the population and to integrate the housing finance system with the overall financial system.
7. When was Deposit Insurance and Credit Guarantee Corporation established under RBI?
[A] 1976
[B] 1978
[C] 1981
[D] 1969
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Correct Answer: B [1978]
Notes:
Deposit Insurance and Credit Guarantee Corporation (DICGC) is a subsidiary of Reserve Bank of India. It was established on 15 July 1978 under Deposit Insurance and Credit Guarantee Corporation Act, 1961 for the purpose of providing insurance of deposits and guaranteeing of credit facilities.
8. In which year the Banking Regulation Act 1949 was amended to make it applicable to cooperative banks?
[A] 1962
[B] 1964
[C] 1965
[D] 1969
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Correct Answer: C [1965]
Notes:
It is applicable in Jammu and Kashmir from 1956. Initially, the law was applicable only to banking companies. But, 1965 it was amended to make it applicable to cooperative banks and to introduce other changes. In 2020 it was amended to bring the cooperative banks under the supervision of the Reserve Bank of India.
9. Who regulates the functioning of District Cooperative Banks in India?
[A] State Government
[B] RBI
[C] State Cooperative Banks
[D] None
Show Answer
Correct Answer: B [RBI]
Notes:
RBI (Reserve Bank of India) regulates and supervises the banking functions of State Cooperative Banks (StCBs), District Central Cooperative Banks (DCCBs) and Urban Cooperative Banks (UCBs) under the various provisions of the Banking Regulation Act, 1949.
10. Which of the following is correct statement about Local Area Banks (LABs)?
[A] They are scheduled Banks working primarily in urban areas
[B] They are non-scheduled Banks predominantly operating in semi-urban and rural areas
[C] They were banks that operated in past but dont exist now in India
[D] They are NOT regulated by RBI
Show Answer
Correct Answer: B [They are non-scheduled Banks predominantly operating in semi-urban and rural areas]
Notes:
A Local Area Bank is a public limited company under the Companies Act, 1956 (now Companies Act, 2013). However, they are licensed under the Banking Regulation. The Local Area Banks are the only type of Non-Scheduled Banks in India.
