Banking Awareness Questions for IBPS, SBI, RRB, RBI and Clerical exams - Set 11

1)   What was the State Bank of India called before it was created through SBI Act?

a. Bank of Hindustan
b. Bank of Madras
c. Imperial Bank of India
d. Imperial Bank of Calcutta
Answer  Explanation 

ANSWER: Imperial Bank of India

The Imperial Bank of India was baptized as State Bank of India followed by the formation of 7 associate banks in 1959.

Recognizing the fact that banking plays a crucial role in the economic development of a country, the Government of India nationalized 14 major commercial banks in July 1969.

Another six commercial banks were nationalized in April 1980.

2)   What is the share of Foreign Banks in total branch network in India?

a. Less than 1%
b. More than 5%
c. Around 4%
d. Around 3.2 %
Answer  Explanation 

ANSWER: Less than 1%

The Foreign banks account for less than 1% of total branch network in India.
These banks are registered and have their headquarters in a foreign country but operate their branches in our country.

Some of the foreign banks operating in our country are -

  • Hong Kong and Shanghai Banking Corporation (HSBC)
  • Citibank
  • American Express Bank
  • Standard Chartered Bank etc.
The number of foreign Banks operating in our country has increased since the financial sector reforms of 1991.

3)   How many Deputy Governors are there in RBI?

a. 2
b. 4
c. 5
d. 10
Answer  Explanation 


The Reserve Bank of India (RBI) is India's central banking institution, which controls the monetary policy of the Indian rupee.

The general superintendence and direction of the RBI is entrusted with the 21-members -

  • Central Board of Directors
  • The Governor
  • 4 Deputy Governors
  • 2 Finance Ministry representatives
  • 10 government-nominated directors to represent important elements from India's economy
  • 4 directors to represent local boards headquartered at Mumbai, Kolkata, Chennai and New Delhi.
Each of these local boards consists of 5 members who represent regional interests, and the interests of co-operative and indigenous banks.

RBI - Reserve Bank of India

Founded : April 1, 1935
Headquarter : Mumbai, Maharashtra
Current Governor : Urjit Patel
Deputy Governors - Harun Rashid Khan, R. Gandhi, S S Mundra, Viral Acharya

4)   Among the following, which type of banking system works on the principles of 'sharia'?

a. Corporate Banking System
b. Shadow Banking
c. Islamic Banking
d. Payments Bank System
Answer  Explanation 

ANSWER: Islamic Banking

Islamic banking is banking or banking activity that is consistent with the principles of sharia (Islamic law) and it is practical application through the development of Islamic economics.

As such, a more correct term for Islamic banking is sharia compliant finance.

Sharia prohibits acceptance of specific interest or fees for loans of money (known as riba, or usury), whether the payment is fixed or floating.

Investment in businesses that provide goods or services considered contrary to Islamic principles (e.g. pork or alcohol) is also haraam ("sinful and prohibited").

Although these prohibitions have been applied historically in varying degrees in Muslim countries/communities to prevent un-Islamic practices, only in the late 20th century were several Islamic banks were formed to apply these principles to private or semi-private commercial institutions within the Muslim community.

RBI has proposed the opening of an ‘Islamic window’ in banks to ‘gradually’ introduce Sharia-compliant banking in India.

5)   Which organization provides guarantee to the exporters?

a. Exim Bank
b. Export Credit Guarantee Corporation
c. Reserve Bank of India
d. Registrar of companies
Answer  Explanation 

ANSWER: Export Credit Guarantee Corporation

On 30 July 1957, the ECGC Limited was established with an objective to provide insurance cover in respect of risks in export trade.

It provides export credit insurance support to Indian exporters and is controlled by the Ministry of Commerce.

Government of India had initially set up Export Risks Insurance Corporation (ERIC) in July 1957.

It was transformed into Export Credit and Guarantee Corporation Limited (ECGC) in 1964 and to Export Credit Guarantee Corporation of India in 1983.

Functions of ECGC

  • Provides a range of credit risk insurance covers to exporters against loss in export of goods and services as well.
  • Offers guarantees to banks and financial institutions to enable exporters to obtain better facilities from them.
  • Provides Overseas Investment Insurance to Indian companies investing in joint ventures abroad in the form of equity or loan and advances.
ECGC - Export Credit Guarantee Corporation

Founded : July 30, 1957
Headquarters : Mumbai, Maharashtra
Current Head : Mrs. Geetha Muralidhar (Chairman & MD)

6)   Which bank was united with the Punjab National Bank in 1993?

a. Oudh Commercial Bank
b. New Bank of India
c. Punjab and Sind Bank
d. Imperial Bank of India
Answer  Explanation 

ANSWER: New Bank of India

The New Bank of India which was running at a loss was united with the Punjab National Bank in September 1993.

The Government of India nationalized New Bank of India in 1980. Punjab National Bank acquired New Bank of India in 1993.

No other nationalized bank in India has been merged into another bank (except for State Bank of India with its associate banks).

PNB - Punjab National Bank

Founded : 19 May 1894; 122 years ago
Headquarter : New Delhi
Current Head : Usha Ananthasubramanian (Aug 14, 2015-Present)

In December 2016, Punjab National Bank (PNB) announced a partnership with Ola to aid cash withdrawals for the citizens of Delhi and the National Capital Region (NCR).

7)   Which is the first bank in India to integrate the Masterpass QR Mobile Payment solution?

b. DCB
c. RBL
Answer  Explanation 


Global payments & technology company, MasterCard has tied up with Ratnakar Bank (RBL Bank), the first lender to integrate the Masterpass QR service with its mobile platform - “OnGo” digital wallet.

RBL Bank Limited (formerly known as The Ratnakar Bank limited) is a scheduled commercial bank headquartered in the Kolhapur region of Maharashtra.

Founded in August 1943, RBL is one of the oldest private sector banks in India.

RBL Bank in November 2016, launched 'Aadhaar Payment Bridge System' (APBS) for small ticket micro-finance loan disbursements.

It is the first bank to launch the APBS on its platform and the intent is to meet the government's target on digital banking.

RBL Bank

Founded : August 1943
Headquarter : Kolhapur, Maharashtra
Current Head : Vishwavir Ahuja (MD & CEO)

8)   Earliest known cooperative credit union ‘Anyonya Sahakari Mandali’ was founded in which year?

a. 1889
b. 1965
c. 1912
d. 1770
Answer  Explanation 

ANSWER: 1889

Anyonya Sahakari Mandali was established in 1889 in the province of Baroda.

It is the earliest known cooperative credit union in India.

Anyonya Sahakari Mandali or Anyonya Co-operative Bank Limited (ACBL) is the first co-operative bank in India.

The Reserve Bank of India ordered the bank to stop most of its operations under Section 35 of the Banking Regulation Act, on 14 September 2007, and ACBL closed in March 2008.

9)   The headquarters of PFRDA are located at?

a. New Delhi
b. Mumbai
c. Chennai
d. Kolkata
Answer  Explanation 

ANSWER: New Delhi

The Pension Fund Regulatory and Development Authority (PFRDA) is a pension regulator which was established by Government of India on August 23, 2003.

PFRDA is authorized by Ministry of Finance, Department of Financial Services.

PFRDA promotes old age income security by establishing, developing and regulating pension funds and protects the interests of subscribers to schemes of pension funds and related matters.

PFRDA is responsible for appointment of various intermediate agencies such as Central Record Keeping Agency (CRA), Pension Fund Managers, Custodian, NPS Trustee Bank, etc.

The Authority consists of a Chairperson and not more than five members, of whom at least three shall be whole-time members, to be appointed by the Central Government.

Current members

Hemant Contractor, Chairman

  • Shri R. V. Verma, Whole-Time Member (Finance)
  • Dr. B.S .Bhandari, Whole-Time Member (Economics)
  • Dr. Shashank Saksensa, Part-Time Member
  • Ms. Annie George Mathew, Par-Time Member
  • Ms. Vandana Sharma, Part-Time Member

10)   SMERA is a joint initiative between ______?

a. SIDBI & Leading Public Sector Banks
b. Dun & Bradstreet Information Services India Private Limited (D&B) & Leading Private Banks
d. Both (A) and (B)
Answer  Explanation 

ANSWER: Both (A) and (B)

SMERA Ratings Limited (formerly SME Rating Agency of India Ltd.) is a joint initiative of Small Industries Development Bank of India (SIDBI), Dun & Bradstreet Information Services India Private Limited (D&B) and leading public and private sector banks in India.

11)   Sukanya Samriddhi Yojana was launched in which year?

a. 2016
b. 2015
c. 2014
d. 2013
Answer  Explanation 

ANSWER: 2015

Pradhan Mantri Sukanya Samriddhi Yojana (PMSSY)

Launched : 22 January 2015
Objective : Secure the future of girl child

Sukanya Samriddhi Yojana is an ambitious small deposit savings scheme for a girl child. Under the scheme, a saving account can be opened in the name of girl child and deposits can be made for 14 years.

After the girl reach 18 years of age, she can withdraw 50% of the amount for marriage or higher study purposes.

After the girl completes 21 years of age, the maturity amount can be withdrawn including the interest at rates decided by Government every year.

The investments and returns are exempt from section 80C of Indian income tax act.

The maximum investment of Rs. 1.5 Lakh per year can be made while minimum deposit is Rs. 1000/- per year.

12)   Which of the following was/were established under the Recovery of Debts Due to Banks and Financial Institutions Act (RDDBFI Act), 1993?

a. DRTs
b. DRATs
c. Both (A) and (B)
d. None of the Above
Answer  Explanation 

ANSWER: Both (A) and (B)

The Debts Recovery Tribunals (DRTs) and Debts Recovery Appellate Tribunal (DRATs) were established under the Recovery of Debts Due to Banks and Financial Institutions Act (RDDBFI Act), 1993.

With the specific objective to provide expeditious adjudication and recovery of debts due to Banks and Financial Institution.

Government of India has constituted thirty three Debts Recovery Tribunals and five Debts Recovery Appellate Tribunals across the country.

Under the Recovery of Debts Due to Banks and Financial Institutions (RDDBFI) Act, 1993 banks approach the Debts Recovery Tribunal (DRT) whereas,

Under Securitization and Reconstruction of Financial Assets and Enforcement of Security Interests (SARFAESI) Act, 2002 borrowers, guarantors, and other any other person aggrieved by any action of the bank can approach the Debts Recovery Tribunal (DRT).