Banking Awareness Questions for IBPS, SBI, RRB, RBI and Clerical exams - Set 8

1)   Original headquarters of RBI were located at which of the following place?

a. Calcutta
b. Bombay
c. Delhi
d. Chennai
Answer  Explanation 

ANSWER: Calcutta

Original headquarters of RBI were in Kolkata.

In 1937, it was shifted to Shahid Bhagat Singh Marg, Mumbai.

Following India's independence on 15 August 1947, the RBI was nationalized on 1 January 1949.

The Reserve Bank of India has zonal offices at Chennai, Delhi, Kolkata and Mumbai.

It has 19 regional offices and 10 sub-offices.

Regional offices are in Ahmedabad, Bangalore, Bhopal, Bhubaneswar, Chandigarh, Chennai, Delhi, Guwahati, Hyderabad, Jaipur, Jammu, Kanpur, Kochi, Kolkata, Lucknow, Mumbai, Nagpur, Patna and Thiruvananthapuram.

2)   Co-operative Societies Act was enacted in which year?

a. 1912
b. 1949
c. 1935
d. 1913
Answer  Explanation 

ANSWER: 1912

The Co-operative Societies Act was enacted in the year 1912.

  • This Act may be called the Co-operative Societies Act, 1912; and
  • It extends to [the whole of India except 3 [the territories which, immediately before the 1st November, 1956, were comprised in Part B States].

  • Co-operative Banks in India

    The structure of cooperative network in India can be divided into 2 broad segments -
    1. Urban Cooperative Banks
    2. Rural Cooperative Banks

3)   Under whose chairmanship did RBI constitute a Working Group for making balance of payments manual?

a. Anand Sinha
b. Deepak Mohanty
c. Harun Rashid Khan
d. Kamlesh Chandra Chakrabarty
Answer  Explanation 

ANSWER: Deepak Mohanty

Deepak Mohanty is an economist at India's central bank, the Reserve Bank of India (RBI).

He holds the post of Executive Director at the head office of RBI in Mumbai.

The areas supervised by him are monetary policy, economic research and statistics.

He has also worked in various positions in economic research and monetary policy departments of the RBI.

4)   Which type of banking is most helpful in cross-selling?

a. Virtual Banking
b. Relationship Banking
c. Wholesale Banking
d. Agricultural Banking
Answer  Explanation 

ANSWER: Relationship Banking

Relationship banking is a strategy used by banks to enhance their profitability.

They accomplish this by cross-selling financial products and services to strengthen their relationships with customers and increase customer loyalty.

Relationship banking involves offering customers a broad array of financial products and services that go beyond simple checking and savings accounts.

In addition to these two basic products, relationship-banking products may include certificates of deposit, safe deposit boxes, insurance, investments, credit cards, loans and business services (e.g., credit card processing).

They may also include specialized financial products designed for specific demographics, such as students, seniors or the wealthy.

5)   SIDBI related statements are given. Pick the wrong statement.

a. SIDBI means Small Industries Development Bank of India
b. It was established on April 2, 1990.
c. It is the principal financial institution for the promotion, financing and development of industry in the small-scale sector.
d. Its head office is in Hyderabad.
Answer  Explanation 

ANSWER: Its head office is in Hyderabad.

The headquarters of SIDBi is in Lucknow.

SIDBI is the Principal Financial Institution for the Promotion, Financing and Development of the Micro, Small and Medium Enterprise (MSME) sector and for co-ordination of the functions of the institutions engaged in similar activities.

SIDBI has also floated several other entities for related activities.

  • Credit Guarantee Fund Trust for Micro and Small Enterprises provides guarantees to banks for collateral-free loans extended to SME.
  • SIDBI Venture Capital Ltd. is a venture capital company focused at SME.
  • SME Rating Agency of India Ltd. (SMERA) provides composite ratings to SME.
  • SARC - India SME Asset Reconstruction Company in 2009, as specialized entities for NPA resolution for SME.


Founded : April 2, 1990
Headquarter : Lucknow, Uttar Pradesh
Current Head : Dr. Kshtarapati Shivaji (Feb 27 2015 - Present)

6)   Which among the following bank has its headquarters in Mumbai?

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

ANSWER: Bank of India

Bank of India (BoI) is commercial bank with headquarters in Mumbai, Maharashtra, India.

Founded in 1906, it has been government-owned since nationalization in 1969.

BoI is a founder member of SWIFT (Society for Worldwide Inter Bank Financial Telecommunications), which facilitates provision of cost-effective financial processing and communication services.

BoI - Bank of India

Founded : 7 September 1906, 110 years ago
Headquarter : Mumbai, Maharashtra, India
Current head : Shri Melwyn Rego (MD & CEO)

7)   Which Private bank is the wholly owned subsidiary of Bank of Baroda?

a. Axis Bank
b. Nainital Bank
c. HDFC Bank
d. Bandhan Bank
Answer  Explanation 

ANSWER: Nainital Bank

The Nainital Bank Limited (NTB) (known as Nainital Bank) is a scheduled commercial bank founded in 1922.

The bank is a subsidiary of Bank of Baroda, the second largest bank in India.

Nainital Bank was founded by Govind Ballabh Pant.

In 1975, the government-owned Bank of Baroda (BOB), the second largest bank in India, acquired a 98.6% (around 99%) stake in the bank and made it a subsidiary.

Nainital bank is associated with Bank of Baroda, HDFC Bank, LIC, National Insurance Company Limited etc.

Currently, NBL has 125 branches in Uttarakhand, Uttar Pradesh, Delhi, Haryana and Rajasthan.

Nainital Bank

Founded : 1922
Headquarter : Nainital, Uttarakhand
Current Head : Mukesh Sharma (Chairman & CEO)

8)   Which of the following Grameen Bank has launched “Bank Sakhi” scheme to promote and popularize cashless transactions in rural areas?

a. Allahabad UP Gramin Bank
b. Karnataka Vikas Grameen Bank
c. Grameen Bank Of Aryavrat
d. Baroda Gujarat Grameen Bank
Answer  Explanation 

ANSWER: Karnataka Vikas Grameen Bank

To promote and popularize cashless transactions in rural areas, the Karnataka Vikas Grameen Bank (KVGB) has come out with an innovative method of employing women in villages.

The bank would appoint women business correspondents called “Bank Sakhi” in select villages where this scheme would be implemented.

To start with, the bank had hired 11 “Bank Sakhis” and plans to appoint more in near future.

A “Bank Sakhi” is someone who has been a member of a self-help group involved in conducting banking and book-keeping activities of the group.

9)   What is the full form of FSDC?

a. Financial Security and Development Council
b. Financial Stability and Development Council
c. Financial Security and Development Convention
d. Fiscal Stability and Development Council
Answer  Explanation 

ANSWER: Financial Stability and Development Council

Financial Stability and Development Council is an apex-level body constituted by the Government of India.

The idea to create such a super regulatory body was first mooted by the Raghuram Rajan Committee in 2008.

In 2010, the then Finance Minister of India, Pranab Mukherjee, decided to set up such an autonomous body dealing with macro prudential and financial regularities in the entire financial sector of India.

Composition of the Council

Chairperson : The Union Finance Minister of India.

Members :

  • Governor - Reserve Bank of India (RBl),
  • Finance Secretary - Department of Economic Affairs (DEA),
  • Secretary - Department of Financial Services (DFS),
  • Chief Economic Advisor - Ministry of Finance,
  • Chairman - Securities and Exchange Board of India (SEBI),
  • Chairman - Insurance Regulatory and Development Authority (IRDA),
  • Chairman - Pension Fund Regulatory and Development Authority (PFRDA),
  • Chairman - Forward Markets Commission (FMC).

Recently Forward Markets Commission (FMC) has been merged into SEBI.

10)   Which of the following is India’s first Credit Information Company?

Answer  Explanation 


Credit Information Bureau Limited (CIBIL) 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.

It collect and maintain records of individuals’ and non-individuals’ (commercial entities) payments pertaining to loans and credit cards.

These records are submitted to credit bureau by banks and other lenders on a monthly basis; using this information a Credit Information Report (CIR) and Credit Score is developed, enabling lenders to evaluate and approve loan applications.

CIBIL was promoted by State Bank of India (SBI), Housing Development Finance Corporation (HDFC), Dun & Bradstreet Information Services India Private Limited (D&B) and TransUnion International Inc. (TransUnion).


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

11)   How much amount is going to be disbursed by banks under Pradhan Mantri Mudra Yojana in FY’17?

a. Rs 2.80 lakh crore
b. Rs 1.50 lakh crore
c. Rs 1.80 lakh crore
d. Rs 1.30 lakh crore
Answer  Explanation 

ANSWER: Rs 1.80 lakh crore

Banks are expected to disburse Rs 1.80 lakh crore loans under the Pradhan Mantri Mudra Yojana (PMMY).

Last year, 3.5 crore beneficiaries’ availed Rs 1.22 lakh crore loans under PMMY.

12)   Banks are required to maintain SLR under which act?

a. Section 24 of the Banking Regulation Act
b. Section 35 of the Negotiable Instrument Act, 1881
c. Section 24 of RBI Act
d. Section 40 of Indian Contract Act, 1872
Answer  Explanation 

ANSWER: Section 24 of the Banking Regulation Act

SLR is governed by the provisions of Section 24 of the Banking Regulation Act.

There is no minimum stipulation on SLR (earlier there used to be a minimum stipulated SLR of 25% - but this was removed with an amendment to the Banking Regulation Act in 2007).

However, SLR cannot exceed 40%.