Banking Awareness Questions for IBPS, SBI, RRB, RBI and Clerical exams - Set 6

1)   In which year did the Hilton Young Commission submit its report?

a. 1926
b. 1921
c. 1935
d. 1947
Answer  Explanation 

ANSWER: 1926

The Hilton Young commission submitted its report in the year 1926.

The Reserve Bank of India was set up based on the recommendations of the Royal Commission on Indian Currency and Finance also known as the Hilton-Young Commission.

2)   Among the following the correct share of Central, State and Sponsor Bank in RRBs is _____?

a. 35%, 40%, 25%
b. 15%, 35%, 50%
c. 30%, 35%, 35%
d. 50%, 15%, 35%
Answer  Explanation 

ANSWER: 50%, 15%, 35%

Each RRB is owned by three entities and their shares are as follows -

  • Central Government – 50%
  • State Government – 15%
  • Sponsor Bank – 35%
RRBs are different from commercial banks in following aspects -
  • Ownership – 3 owners (Central Govt., State Govt., Sponsor Bank)
  • Regulation – Regulated by NABARD. Other directly by RBI.
  • Law – RRB have separate law behind them, Regional Rural Banks Act, 1976.

3)   What is the full form of CRR?

a. Cash Reserve Rate
b. Cash Reserve Raio
c. Cash Recession Ratio
d. Core Reserve Rate
Answer  Explanation 

ANSWER: Cash Reserve Raio

Cash Reserve Ratio is a certain percentage of bank deposits which banks are required to keep with RBI in the form of reserves or balances.

Higher the CRR with the RBI, lower will be the liquidity in the system and vice versa.

RBI is empowered to vary CRR between 15 percent and 3 percent.

As of 4 October 2016, the CRR is 4.00 percent.

4)   Which of the following is not a part of India's Money Market?

a. Banks
b. Bill Markets
c. Call Money Market
d. Indian Gold Council
Answer  Explanation 

ANSWER: Indian Gold Council

The Money market in India is the money market for short-term and long-term funds with maturity ranging from overnight to one year in India.

The Indian money market consists of the unorganized sector : moneylenders, indigenous bankers and unregulated Non-Bank Financial Intermediaries (e.g. Finance Companies, Chit funds, Nidhi);

Organized sector : Reserve Bank of India, private banks, public sector banks, development banks and other Non-Banking Financial Companies (NBFCs) such as Life Insurance Corporation of India (LIC), the International Finance Corporation, IDBI, and the co-operative sector.

In our country, Money Markets are regulated by both RBI and SEBI.
SEBI – Securities and Exchange Board of India

Founded : 12 April, 1992
Headquarter : Mumbai, Maharashtra
Current Head : Upendra Kumar Sinha (Chairman)

5)   As per which guidelines did the Government pick up the entire SBI shares held by the RBI?

a. National Stock Exchange of India
b. Securities Commission
c. Financial Regulations
d. Securities and Exchange Board of India (SEBI)
Answer  Explanation 

ANSWER: Securities and Exchange Board of India (SEBI)

As per the guidelines of the Securities and Exchange Board of India (SEBI), the Government picked up the entire SBI shares held by the RBI at a price of Rs. 1,130.35 a share.

SEBI is the regulatory authority for the securities market in India.

Powers -

For the discharge of its functions efficiently, SEBI has been vested with the following powers:

  • to approve by - laws of stock exchanges.
  • to require the stock exchange to amend their by – laws.
  • inspect the books of accounts and call for periodical returns from recognized stock exchanges.
  • inspect the books of accounts of financial intermediaries.
  • compel certain companies to list their shares in one or more stock exchanges.
  • registration of brokers.

6)   Allahabad Bank is one of the oldest public sector bank in India with its headquarters at Kolkata. Which among the following banks have headquarters in Mumbai?

a. UCO Bank
b. United Bank of India
c. Dena Bank
d. Indian Bank
Answer  Explanation 

ANSWER: Dena Bank

Dena Bank headquartered in Mumbai, is owned by the Government of India.

Dena Bank was founded on 26 May 1938 by the family of Devkaran Nanjee under the name Devkaran Nanjee Banking Company.

It adopted its new name, Dena Bank (Devkaran Nanjee) when it was incorporated as a public company in December 1939.

Dena Bank

Founded - 26 May 1938; 78 years ago
Headquarter - Mumbai, Maharashtra, India
Current Head - Shri Ashwani Kumar (Chairman & MD)

7)   Name the mobile banking app of Kotak Mahindra Bank (KMB) launched primarily for “un-banked” regions?

a. Kotak Bharat
b. Bharat
c. Kotak India
d. IndianKotak
Answer  Explanation 

ANSWER: Kotak Bharat

It is the ‘inclusive digital banking’ app launched by KMB that is primarily targeted to benefit customers in the under-banked and un-banked regions, who can access its services in their preferred language. One major benefit of this app is that it requires no internet connectivity.

Kotak Mahindra Bank

Kotak Mahindra Bank is an Indian private sector banking headquartered in Mumbai, Maharashtra, India.

In February 2003, Reserve Bank of India (RBI) gave the license to Kotak Mahindra Finance Ltd., the group's flagship company, to carry on banking business.

In 2016, it was the third largest private bank in India by market capitalization.

In 2014, Kotak Bank acquired ING Vysya Bank for a deal valued at ?15,000 crores (US$2.2 billion).

Post the merger, ING Group which controlled ING Vysya Bank will own 7% share in Kotak Mahindra Bank.

KMB - Kotak Mahindra Bank

Founded - 1985 (as Kotak Mahindra Finance Ltd)
Headquarter - Mumbai, Maharashtra
Current Head - Uday Kotak (Founder & Executive Vice Chairman & MD)

8)   Which committee reviewed the financial position of all RRBs in 2010 and recommended for recapitalization?

a. Chakrabarty Committee
b. Nayak Committee
c. Dr. Vyas Committee
d. Sriniwasan Committee
Answer  Explanation 

ANSWER: Chakrabarty Committee

The Government had constituted a Committee in September 2009 (Chairman : Dr. K. C. Chakrabarty) to study the current level of Capital-to-Risk-Weighted Assets Ratio (CRAR) of RRBs.

The Committee submitted its Report to the Government of India on April 30, 2010.

The Committee was also required to suggest the required capital structure for RRBs given their business level, so that their CRAR is sustainable and provides for future growth and compliance with regulatory requirements.

Capital Adequacy Ratio (CAR), also k/as Capital to Risk (Weighted) Assets Ratio (CRAR), is the ratio of a bank's capital to its risk.

It is a measure of a bank's capital. It is expressed as a percentage of a bank's risk weighted credit exposures.

9)   Which of the following organizations in India provides credit history of the borrowers?

b. CII
Answer  Explanation 


Credit Information Bureau Limited is the first Credit Information Company in India.

TransUnion CIBIL Limited (Formerly : Credit Information Bureau (India) Limited) is India’s first Credit Information Company (CIC) founded in August 2000.


Founded : August 2000; 16 years ago
Headquarter : Mumbai, India
Current Head : M.V.Nair (Chairman), Satish Pillai (Managing Director)

How it works?

The Credit Information Report (CIR) and CIBIL TransUnion Score are used in the loan approval process.

The CIR and Credit Score help loan providers identify consumers who are likely to be able to pay back their loans.

An individual with a credit score above 750 is perceived as a responsible borrower.

10)   Which of the following is Asia’s first stock exchange?

a. BSE
b. NSE
c. PSE
d. CSE
Answer  Explanation 


Bombay Stock Exchange (BSE) is Asia’s first stock exchange.

It claims to be the world’s fastest stock exchange, with a median trade speed of 6 microseconds.

The Bombay Stock Exchange (BSE) is located at Dalal Street, Mumbai (formerly Bombay).

It was established in 1875.

BSE is the world's 11th largest stock exchange and more than 5500 companies are publicly listed on the BSE.


Founded : 9 July 1875
Headquarter : Mumbai, India
Current Head : Ashish Kumar Chauhan (MD & CEO)

11)   The Reserve Bank of India will transfer how much surplus to the government for FY’16 as dividend?

a. Rs 68876 crore
b. Rs 65885 crore
c. Rs 75876 crore
d. Rs 65876 crore
Answer  Explanation 

ANSWER: Rs 65876 crore

The Reserve Bank of India will transfer Rs. 65876 crore as surplus to the government for FY’16, Rs 20 crore less that previous year’s Rs 65896 crore.

The surplus approved by the Reserve Bank of India board could be used to fund the centre’s fiscal deficit.

12)   When did the Reserve Bank of India notify the draft regulations relating to the Credit Information Companies (Regulation) Act, 2005?

a. April 5, 2006
b. May 26, 2006
c. June 29, 2007
d. September 30, 2005
Answer  Explanation 

ANSWER: April 5, 2006

The Reserve Bank of India (RBI) notified the draft regulations relating to the Credit Information Companies (Regulation) Act, 2005 on April 5, 2006.

Among the major features of the regulations is the inclusion of stock brokers and telecommunication companies in the category of 'specified users' of services of credit information companies.