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.
21. Lead bank scheme was initiated by which of the following?
[A] KP Group
[B] Gadgil Study Group
[C] Ghosh committee
[D] Bhagwati committee
Show Answer
Correct Answer: B [Gadgil Study Group ]
Notes:
Lead Bank Scheme (LBS) was introduced in 1969 based on the recommendations of the Gadgil Committee.
22. Which of the following is not true regarding Financial Inclusion plan?
[A] Simplified KYC norms for accounts opening
[B] Mandatory branches in unbanked villages
[C] BSBDA accounts with minimum balance criteria
[D] Micro branches to be opened in rural area
Show Answer
Correct Answer: C [BSBDA accounts with minimum balance criteria]
Notes:
Financial inclusion could be impeded by Know Your Customer regulation, according to a recent report published by the South African Reserve. Mandatory branches are to be intended in unbanked villages and micro branches should be opened in rural area.
23. ATMs cards are issued to a person who maintains which of the following accounts with the bank ?
[A] saving bank accounts
[B] Current accounts
[C] term deposits
[D] either 1 or 2
Show Answer
Correct Answer: D [either 1 or 2]
Notes:
There are two kinds of accounts. At an ATM, we are always faced with the option of choosing between a Savings Account or a Current Account.
24. The term ATM stands for which of the following?
[A] Automatic teller machine
[B] Automated teller mechanism
[C] Automated teller machine
[D] None of the above
Show Answer
Correct Answer: C [Automated teller machine]
Notes:
An automated teller machine (ATM) is an electronic banking outlet that allows customers to complete basic transactions without the aid of a branch representative or teller.
25. What does a “bank” means in Payment and Settlement Systems Act, 2007, unless the context otherwise requires?
[A] a bank included in the Second Schedule to the RBI Act
[B] a post office savings bank
[C] a banking company as defined in clause c of section 5, of the Banking Regulation Act
[D] all of the above
Show Answer
Correct Answer: D [all of the above]
Notes:
In this Act, unless the context otherwise requires, “bank” means, a bank included in the Second Schedule to the Reserve Bank of India Act, 1934; a post office savings bank; a banking company as defined in clause (c) of section 5, of the Banking Regulation Act, 1949; a co-operative bank as defined in clause of section 5 of the Banking Regulation Act, 1949.
26. The Insurance Regulatory and Development Authority (IRDA) is which type of body?
[A] Constitutional Body
[B] Statutory Body
[C] Non Governmental Organization
[D] Advisory Body
Show Answer
Correct Answer: B [Statutory Body]
Notes:
Insurance Regulatory and Development Authority (IRDA) is a statutory body set up for protecting the interests of the policyholders and regulating, promoting and ensuring orderly growth of the insurance industry in India.
27. Under NBFC– Peer to Peer Lending Platform Directions, 2017 by RBI, what is the aggregate loan limit of a single borrower at any point of time, across all P2Ps?
[A] Rs 25 lakh
[B] Rs 15 lakh
[C] Rs 20 lakh
[D] Rs 10 lakh
Show Answer
Correct Answer: D [Rs 10 lakh]
Notes:
The aggregate loans taken by a borrower at any point of time, across all P2Ps is subjected to a cap of Rs 10,00,000/-
28. Under the guidelines issued on 2 Dec 2011, an NBFC-MFI should have minimum net owned funds of how much amount?
[A] Rs. 3 crore
[B] Rs. 4 crore
[C] Rs. 5 crore
[D] Rs. 6 crore
Show Answer
Correct Answer: C [Rs. 5 crore]
Notes:
RBI has recently opened a separate category of non-banking financial companies for micro finance institutions, namely, NBFC-MFI under its control to remove the ambiguity over regulation of MFIs. Under the guidelines issued on 2 Dec 2011, an NBFC-MFI should have minimum net owned funds of Rs. 5 crore.
29. India Infrastructure Finance Company Ltd was set up in which of the following years?
[A] 2004
[B] 2006
[C] 2005
[D] 2002
Show Answer
Correct Answer: B [2006]
Notes:
IIFCL is a wholly-owned Government of India company set up in 2006 to provide long term finance to viable infrastructure projects through the Scheme for Financing Viable Infrastructure Projects through a Special Purpose Vehicle called India Infrastructure Finance Company Ltd (IIFCL), broadly referred to as SIFTI.
30. What is the net owned funds of NBFC?
[A] Rs 7 crore
[B] Rs 10 crore
[C] Rs 2 crore
[D] Rs 5 crore
Show Answer
Correct Answer: D [Rs 5 crore]
Notes:
NBFC- Factor means a non-banking financial company which has Net Owned Funds of Rs. 5 crore and has been granted a certificate of registration by RBI under section 3 of the Factoring Regulation Act, 2011.
