Banking Awareness Questions for IBPS, SBI, RRB, RBI and Clerical exams - Set 14

1)   How many banks were nationalized in India in the year 1969?

a. 12
b. 29
c. 14
d. 6
Answer  Explanation 


The Government of India issued an ordinance ('Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1969') and nationalized the 14 largest commercial banks with effect from the midnight of 19 July 1969.

Following is the list of 14 major banks that were nationalized -

  • Central Bank of India
  • Bank of Maharashtra
  • Dena Bank
  • Punjab National Bank
  • Syndicate Bank
  • Canara Bank
  • Indian Bank
  • Indian Overseas Bank
  • Bank of Baroda
  • Union Bank
  • Allahabad Bank
  • United Bank of India
  • UCO Bank
  • Bank of India

2)   Of the 11 companies that were given in-principle nod by the Reserve Bank of India (RBI) to set up payments banks in August, 2015, three have already dropped out. Which among the following company has dropped out?

a. Airtel Money
b. Tech Mahindra
c. PayTm
d. Vodafone mPesa
Answer  Explanation 

ANSWER: Tech Mahindra

Of the 11 companies that were given in-principle nod by the Reserve Bank of India (RBI) to set up payments banks in August, 2015, three companies - Tech Mahindra, Cholamandalam Finance and Dilip Shanghvi-IDFC Bank-Telenor JV have dropped out.

This leaves only eight applicants - India Post, Airtel Money, Reliance Industries, PayTm (Vijay Shekhar Sharma), Aditya Birla Nuvo, Vodafone MPesa, Fino PayTech and NSDL.

Payments Bank :

Payments banks are a new model of banks conceptualized by the Reserve Bank of India (RBI).

  • These banks can accept a restricted deposit which is currently limited to INR 1 lakh per customer and may be increased further.
  • These banks cannot issue loans and credit cards.
  • Payments banks can issue services like ATM cards, debit cards online banking and mobile banking.
Regulations -
  • The minimum capital requirement is Rs. 100 crores.
  • For the first five years, the stake of the promoter should be 40% minimum.
  • The voting rights will be regulated by the Banking Regulation Act, 1949. The voting right of any shareholder is capped at 10%, which can be raised to 26% by Reserve Bank of India.
  • Any acquisition of more than 5% will require approval of the RBI.

3)   Which of the following scheme was formulated by RBI?

a. Banking Ombudsman Scheme
b. Jan Dhan Yojana
c. MUDRA Bank Yojana
d. Boutique Financing Scheme
Answer  Explanation 

ANSWER: Banking Ombudsman Scheme

Banking Ombudsman Scheme is a mechanism created by the RBI to address the complaints raised by bank customers.

It is run by the RBI directly to ensure customer protection in the banking industry.

The Banking Ombudsman Scheme was introduced under Section 35 A of the Banking Regulation Act, 1949 by RBI with effect from 1995.

The present Ombudsman scheme was introduced in 2006.

When a customer can approach the Ombudsman?

A customer can file a complaint before the Banking Ombudsman if the bank doesn’t provide a satisfactory reply to the customer within a period of one month or the bank rejects the complaint, or if the complainant is not satisfied with the reply by the bank.

4)   What does the acronym IFCI mean?

a. International Finance Corporation of India
b. Industrial Finance Corporation of India
c. Institute of Financial Consultants of India
d. Industrial Finance Council of India
Answer  Explanation 

ANSWER: Industrial Finance Corporation of India

IFCI Ltd. was set up in 1948 as Industrial Finance Corporation of India, a Statutory Corporation, through `The Industrial Finance Corporation of India Act, 1948’ of Parliament to provide medium and long term finance to industry.

It was the first Development Financial Institution established by the Indian government after independence.

Until the establishment of ICICI in 1956, IFCI remained solely responsible for implementation of the government's industrial policy initiatives.

In 1993, it was reconstituted as a company to impart higher degree of operational flexibility and named as IFCI Ltd.

Functions :

The functions of the IFCI are as follows :

  • The corporation grants loans and advances to industrial concerns.
  • Granting of loans both in rupees and foreign currencies.
  • The corporation underwrites the issue of stocks, bonds, shares etc.
  • The corporation can grant loans only to public limited companies and co-operatives but not to private limited companies or partnership firms.

    IFCI Ltd

    Founded : 1948
    Current Head : Shri Malay Mukherjee (CEO)

5)   Canara Bank and Corporation Bank have headquarters in _____ and _____ respectively.

a. Bangalore, Mangalore
b. Mangalore, New Delhi
c. Both in Bangalore
d. Both in Mangalore
Answer  Explanation 

ANSWER: Bangalore, Mangalore

Canara Bank is an Indian state-owned bank headquartered in Bangalore, Karnataka.

It was established at Mangalore in 1906, making it one of the oldest banks in the country.

The bank also has offices abroad in London, Hong Kong, Moscow, Shanghai, Doha, Bahrain, South Africa, Dubai, Tanzania and New York.

Canara Bank

Founded : Canara Bank Hindu Permanent Fund (1906; 110 years ago, Mangalore) Canara Bank Ltd (1910) Canara Bank (1969)
Headquarter : Bangalore, Karnataka, India
Current Head : Shri Rakesh Sharma (MD & CEO)

Corporation Bank

Corporation Bank is a public-sector banking company headquartered in Mangalore, India.

Founded : 12 March 1906; 110 years ago
Headquarter : Mangalore, Karnataka, India
Current Head : Jai Kumar Garg (CEO & MD)

6)   Which of the following bank has its headquarters in Tamil Nadu?

a. Dhanalakshmi Bank
b. Karur Vysya Bank
c. South Indian Bank
d. Catholic Syrian Bank Ltd
Answer  Explanation 

ANSWER: Karur Vysya Bank

Karur Vysya Bank is a private-sector Indian bank, headquartered in Karur in Tamil Nadu.

It was set up in 1916 by M. A. Venkatarama Chettiar and Athi Krishna Chettiar.

It is one of the largest old generation private bank in India and largest in Tamil Nadu Internet Banking and Mobile Banking facilities to its customers.

The bank is known for its cash deposit machines (CDM) a major technology initiative taken only by few banks in India.

This bank is also an excellent paymaster amongst all private sector banks.

The bank has been paying ex-gratia each year to all employees for several years.

Karur Vysya Bank

Founded : 1916
Headquarter : Karur, Tamil Nadu
Current Head : K. Venkataraman (MD& CEO)

Similarly, other major banks that have their headquarters in Tamil Nadu are -

Tamilnad Mercantile Bank

Founded : 11 May 1921
Headquarter : Tuticorin, Tamil Nadu
Current Head : HS Upendra Kamath (MD & CEO)

Lakshmi Vilas Bank

Founded : 1926
Headquarter : Chennai, Tamil Nadu
Current Head : Parthasarathi Mukherjee (MD & CEO)

7)   Co-operative banks are regulated by the Reserve Bank of India under which act?

a. Banking Regulation Act, 1949
b. Banking Laws (Application to Co-operative Societies) Act, 1965
c. Negotiable Instrument Act–1881
d. Both (A) and (B)
Answer  Explanation 

ANSWER: Both (A) and (B)

Co-operative banks are regulated by the Reserve Bank of India under the Banking Regulation Act, 1949 and Banking Laws (Application to Co-operative Societies) Act, 1965

8)   UTI was founded in the year?

a. 1964
b. 1965
c. 1955
d. 1959
Answer  Explanation 

ANSWER: 1964

Unit Trust of India is a financial organization which was created by the UTI Act passed by the Parliament of India on December 30, 1963 under the direction of Col. Akash Behl.

UTI Mutual Fund is promoted by the four of the largest Public Sector Financial Institutions as sponsors -

  • State Bank of India
  • Life Insurance Corporation of India
  • Bank of Baroda
  • Punjab National Bank
with each of them presently holding an 18.5% stake in the paid up capital of UTI AMC.


Founded : 1964
Headquarter : UTI Tower, Mumbai
Current Head : Mr. Leo Puri (Managing Director)

9)   The headquarters of CARE is in _______?

a. Mumbai
b. New Delhi
c. Noida
d. Gurugram
Answer  Explanation 

ANSWER: Mumbai

Credit Analysis & Research Limited (CARE) is located in Mumbai.

CARE Ratings commenced operations in April 1993 and over nearly two decades; it has established itself as the second-largest credit rating agency in India.

To enhance its scope of business CARE Ratings has been nurturing global opportunities and it has launched a new international credit rating agency ‘ARC Ratings’ with 4 partners from Brazil, Portugal, Malaysia and South Africa and established a subsidiary CARE Ratings (Africa) Private Limited (CRAF) in Mauritius.


Founded: 1993
Headquarter : Mumbai, India
Current Head : Mr. Rajesh Mokashi (MD & CEO)

10)   What is the full form of CERSAI?

a. Combined Registry of Securitization Asset Reconstruction and Security Interest
b. Combined Registry of Securitization Agency Reconstruction and Security Interest
c. Central Registry of Securitization Asset Reconstruction and Security Interest
d. Central Registry of Securitization Agency Reconstruction and Security Interest
Answer  Explanation 

ANSWER: Central Registry of Securitization Asset Reconstruction and Security Interest

Central Registry of Securitization Asset Reconstruction and Security Interest (CERSAI) is a central online security interest registry of India.

It was primarily created to check frauds in lending against equitable mortgages, in which people would take multiple loans on the same asset from different banks.

The company incorporated with majority shareholding of the Central Government, Public Sector Banks and National Housing Bank for the purpose of operating a Registration System under the provisions of Chapter IV of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. (SARFAESI Act).

CERSAI - Central Registry of Securitization Asset Reconstruction and Security Interest

Founded : 11 March, 2011
Headquarter : New Delhi, India
Current Head : Praveen Kumar Sharma (Central Registrar) (CR, MD & CEO)

11)   Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a renewable insurance scheme. The upper age limit for this scheme is _______?

a. 55 years
b. 50 years
c. 60 years
d. 65 years
Answer  Explanation 

ANSWER: 50 years

50 years

Eligibility : Bank account holders aged between 18 and 50 years are eligible to apply for this scheme.

Cost : Less than Re. 1 a day or an annual premium of Rs. 330 is what you need to pay to get a life cover of Rs. 2 lacs.

Period : June 1st, 2015 to May 31st, 2016 is the period for which this scheme will cover all kind of risks to your life in the first year of operation.

Next year onwards as well, the risk cover period will remain June 1 to May 31.

12)   Which of the following gives consumers the right to see their credit records and correct mistakes?

Answer  Explanation 


The Fair Credit Reporting Act (FCRA) is a Federal law established in 1971 and revised in 1997.

The Fair Credit Reporting Act (FCRA) is a federal law that regulates how consumer reporting agencies use your information.

It also restricts who has access to your sensitive credit information and how that information can be used.