Banking awareness 100 Questions:-
● What is Shadow Banking?
Answer :- Financial transactions and other activities of non-banking financial intermediary,
● Devaluation of Mudra –
Answer :- Increases the exports and decreases the imports of a country,
● The RBI does not transact the business of which State government?
Answer :- Jammu and Kashmir,
● Income tax in India was introduced by –
Answer :- James Wilson,
● A PAN has initially a five-alphabet series like AFZPK 7190 K. Here P stands for –
Answer :- Individual,
● Long-term fiscal policy was announced by which Finance Minister of India?
Answer :- VP Singh,
● Which type of institution keeps information about the past credit history of customers?
Answer :- CIBIL,
● The National Payment Corporation of India (NPCI) has launched a mobile based payment facility. This facility is known as –
Answer :- IMPS,
● Bad loans in banking terminology are generally known as –
Answer :- NPA,
● The controlling authority of government expenditure is –
Answer :- The Finance Ministry,
● Effective Revenue Deficit was introduced in the Union Budget of –
Answer :- 2011-12,
● Interest payment is an item of –
Answer :-Revenue expenditure,
● Foreign currency which has a tendency of quick migration is called –
Answer :- Hot currency,
● Ad hoc Treasury Bill System of meeting budget deficit in India was abolished on –
Answer :- 31st March, 1997,
● Convertibility of the rupee implies –
Answer :- Freely permitting the conversion of rupee to other major currencies and vice versa,
● Interest on savings bank account is now calculated by banks on which basis?
Answer :- Daily product basis,
● Which is the largest shareholder (in percentage shareholding) of a nationalized bank?
Answer :- Govt. of India,
● Banks in our country normally publicise that additional interest rate is allowed on retail domestic term deposits of which citizens?
Answer :- Senior citizens,
● Lending to Micro Finance Institutions by Bank considered as finance to which sector?
Answer :- Priority Sector,
● What is money laundering?
Answer :- Conversion of Money which is illegally obtained,
● Which is a measure taken by Reserve Bank of India to control inflation in our country?
Answer :- Raising of Repo / Reverse Repo Rate,
● What type of loan is granted by banks for purchase of white goods?
Answer :- Consumer durables loan,
● What are fixed deposits and recurring deposits?
Answer :- Repayable on demand,
● Which accounts are allowed to be operated by cheques?
Answer :- Savings bank accounts and current accounts,
● What is Mortgage?
Answer :- Security on immovable property for a loan given by a bank,
● Which will setup sore banking infrastructure for rural banks?
Answer :- NABARD,
● What is the name of cheque when a bank returns unpaid?
Answer :- Dishonor of the cheque,
● Which state became the first state in the country to launch RBI’s e-payment system for commercial tax payers?
Answer :- Karnataka,
● Interest payable on savings bank accounts is regulated by which bank?
Answer :- RBI,
● Many times we read about Hawala transactions in newspapers. Hawala in India is prohibited under the provision of which Act?
Answer :- Foreign Exchange Management Act,
● Which is material alteration of a negotiable instrument?
Answer :- Converting an order cheque to bearer cheque,
● Which loan constitutes the largest percentage of Retail loans in India?
Answer :- Home loans,
● Credit risk to the bank is high from which of these cards?
Answer :- Credit cards,
● Which is a Credit Card Association?
Answer :- Master Card,
● What is the Rate at which the domestic currency can be converted into foreign currency and vice-versa is known as?
Answer :- Exchange rate,
● Which are the bank branches that can undertake foreign exchange business directly are known as in foreign exchange?
Answer :- Exchange branches,
● By which is insurance cover for bank deposits in our country provided?
Answer :- DICGC,
● Which is the loan of very small amounts given to low income groups?
Answer :- Micro credit,
● Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) are terms most closely related to which industry/ market?
Answer :- Banking industry,
● What is the maximum period for which domestic term deposits are normally accepted by banks in our country?
Answer :- 10 years,
● Monetary Policy as an arm of the economic policy is administered by which bank?
Answer :- Reserve Bank of India,
● Which reserves can act as a liquidity buffer for commercial banks during crisis times?
Answer :- SLR,
● By whom are Savings bank accounts opened?
Answer :- Individuals for savings purposes,
● Many a times we read in the news paper about CASA deposits of banks. CASA what are deposits?
Answer :- Demand deposits,
● Assume that Reserve Bank of India reduces the Bank Rate by 1%, what will be its impact?
Answer :- More liquidity in the market,
● Whose signature is found on a 50 rupee currency note in India?
Answer :- Governor, RBI,
● Which institution is involved mainly in granting Housing Loans?
Answer :- HDFC,
● Almost all banks in our country have introduced which facility for granting crop loans to farmers?
Answer :- Kisan Credit Cards,
● What is meant by financial inclusion?
Answer :- Making available banking services at an affordable cost,
● Which agency/organization in India maintains the Micro. Finance Development and Equity Fund ?
Answer :- National Bank for Agriculture and Rural Development (NABARD),
● A bank branch receives a counterfeit note of Rs. 100 from the customer, which customer wants it back. Which action should be taken by the Bank?
Answer :- Will impound and not return,
● In India, which have the highest share in the disbursement of credit to agriculture and allied activities?
Answer :- Microfinance Institutions,
● What is the mean of Bad debts?
Answer :- Amounts owed to a company that are not going to be paid,
● What is the maximum permissible limit for investment in PDF account in a financial year?
Answer :- Rs. 150000,
● In our country, till when a cheque remains valid for payment for from the date of issue?
Answer :- 3 months,
● The Govt. of India has acquired RBI’s stake in one of the major banks of India. Which that bank?
Answer :- State Bank of India,
● Credit Cards are known by which another name?
Answer :- Plastic money,
● On domestic term deposits, banks in our country generally offer additional rate of interest on term deposits from which citizens?
Answer :- Senior citizens,
● Which instrument cannot be transferred from one person to another by endorsement?
Answer :- Fixed Deposit Receipt,
● Crossing applies to which instrument?
Answer :- Cheques,
● Salary payable by Government of India to an Indian Citizen for services outside India –
Answer :- Is taxable in India,
● Which asset can be mortgaged?
Answer :- Land and Building,
● Which is foreign bank having offices/branches in India?
Answer :- Standard Chartered Bank,
● Basel-II norms are associated with which aspect of the banking industry?
Answer :- Risk management,
● If PAN details are not provided, the TDS is deducted at which rate?
Answer :- 20%,
● What does the lowering of Bank Rate by the Reserve Bank of India leads to –
Answer :- More liquidity in the market,
● By which bank is the rate of interest on Savings Bank Account stipulated? –
Answer :- RBI,
● Which bodies regulates monetary policy in India?
Answer :- Reserve Bank of India,
● Resurgent India Bonds were issued in US Dollar, Pound Sterling and –
Answer :- Deutsche Mark,
● Currency market is regulated by the Reserve Bank of India (RBI), while currency futures” are jointly regulated by the RBI and which other banks ?
Answer :- SEBI,
● A bank without any branch network that offers its services remotely through online banking, telephone/mobile banking and inter-bank ATM network alliances is known as -
Answer :- Universal Banking,
● The present Indian monetary system is based on –
Answer :- Minimum Reserve System,
● In India, which is regulated by the forward Markets Commission?
Answer :- Commodities Futures Trading,
● Goodwill account is a –
Answer :- Real account,
● Financial year in banks is a period from –
Answer :- April to March,
● If saving exceeds investment, how will the national income?
Answer :- Remain constant,
● How does a decrease in SLR affect the market?
Answer :- Liquidity increases,
● What does DTL stand for in the field of banking?
Answer :- Demand and Time Liabilities,
● Real time settlement of fund transfer is known as –
Answer :- RTGS,
● In banking business, when the borrowers avail a Term Loan, Initially they are given a repayment holiday and this is referred to as -
Answer :- Moratorium,
● Interest below which a bank is not expected to lend to customers is known as -
Answer :- Base Rate,
● Interest on Savings deposit nowadays is -
Answer :- Fixed by the respective Banks,
● Banking Ombudsman is appointed by -
Answer :- RBI,
● Bank deposits that can be withdrawn without notice are called -
Answer :- Demand deposits,
● Suvidha Fixed Deposit scheme was launched by which bank?
Answer :- IDBI,
● What does Demonetization mean?
Answer :-Withdrawal of currency from circulation which is done to ambush black market,
● Increase in cash reserve ratio leads to -
Answer :- decrease in bank credit,
● The Reserve Bank of India came into existence on -
Answer :- April 1, 1936,
● How many banks were nationalized in 1969?
Answer :- 14,
● The Reserve Bank of India issues notes under the following note issue method -
Answer :- Minimum reserve system,
● The place where bankers meet and settle their mutual claims and accounts is known as -
Answer :- Clearing House,
● Banks in India were nationalised for the first time in the year -
Answer :- 1969,
● In India since Independence -
Answer :- the rate of savings and investment have gone up,
● When was the IDBI ( Industrial Development Bank of India ) instituted?
Answer :- 1964,
● When was the Reserve Bank of India taken over by the Government?
Answer :- 1948,
● Bank rate is the rate of interest -
Answer :- At which Commercial Banks borrow money from RBI,
● The highest denomination of currency notes in circulation as legal tender in India is a present -
Answer :- Rs. 1000,
● Who headed the Committee on Computerisation in Indian banks (1988)?
Answer :- M. Narasimhan,
● The Reserve Bank of India issues -
Answer :- all the currency notes except the one rupee note,
● The main function of the Exim Bank is -
Answer :- to promote exports and curtail imports,
