Candidates who are preparing for the banking examinations such as IBPS, RBI, SBI, NABARD and other Bank Examinations must be well aware of the banking awareness section. Because of the most important sections of banking exams and helps in increasing those extra marks which you require for your final selection. Banking awareness questions are asked both in the mains examination and interview round. Now here we are providing with the complete study notes and study material of the Banking Awareness for all the private and government bank examinations.
Banking & Financial Awareness Questions
Q 1: First Bank established in India was
(A) Bank of India
(B) Bank of Hindustan
(C) Bank of Bharat
(D) Bank of Agra
(E) None of these
Answer : B
Q 2: The concept of Economic planning in India is derived from ________.
(A) USA
(B) UK
(C) Australia
(D) Russia
Answer : D
Q 3: A Debit Card Cam be issued to
(A) Only Income tax assesses
(B) Only Professionals
(C) Only Women
(D) All farmers
(E) All savings account
Answer : E
Q 4: Which of the following is not a measurement dimension of the recently launched Financial Inclusion Index (FII)?
(A) Quantity of Credit to GDP
(B) Access to financial services
(C) Usage of financial services
(D) Quality
(E) None of these
Answer : A
Q 5: What are the Pre-Payment charges applied on paying personal loan before tenure period.
(A) 10% of the Principal
(B) 5% of the Principal
(C) 1-2% of the Principal
(D) 7% of the Principal
Answer : C
Q 6: What Street Name is used to refer to the RBI?
(A) Reserve Street
(B) Credit Street
(C) Mint Street
(D) None of the above
Answer : C
Q 7: What is the upper age limit for Pradhan Mantri Jeevan Jyoti Bima Yojana renewable insurance scheme?
(A) 55 years
(B) 60 years
(C) 65 years
(D) 50 years
Answer : D
Q 8: Which of the following is an example of Representative Money?
(A) Gold
(B) Silver
(C) Tobacco
(D) None of these
(E) All of these
Answer : E
Q 9: When was the currency system in India converted into decimal system?
(A) 1st April 1949
(B) 1st April 1959
(C) 1st April 1957
(D) 1st April 1969
(E) None of these
Answer : C
Q 10: If a cheque is presented for payment after six months from the date of the cheque it is called ______
(A) Bearer Cheque
(B) Order Cheque
(C) Open Cheque
(D) Stale Cheque
(E) Mutilated Cheque
Answer : D
Q 11: The upper limit per UPI transaction is __________.
(A) 10000
(B) 20000
(C) 50000
(D) 1 lakh
(E) None of these
Answer : D
Q 12: In which year National Electronic Fund Transfer started in India?
(A) 2004
(B) 2002
(C) 2006
(D) 2005
Answer : D
Q 13: Who has been given the power under the Banking Regulation Act 1949 to grant license to banks?
(A) RBI
(B) State Government
(C) Central Government
(D) All of the above
Answer : A
Q 14: Which of the following include the primary structure of the Mutual Funds?
(A) Open-end funds
(B) Unit Investment Trusts
(C) Exchange traded Funds
(D) All of the Above
Answer : D
Q 15: Which of the following bank was fined 60 million rupees by RBI in June 2018?
(A) South Indian Bank
(B) Tamilnad Mercantile Bank Limited
(C) AP State Co-operative Bank
(D) Malleswaram Co-operative Bank Ltd
(E) Bardoli Nagarik Sahakari Bank Ltd
Answer : B
Q 16: The sales process begins with
(A) customer identification
(B) lead generation
(C) sales presentation
(D) Sales closure
(E) sales meet
Answer : A
Q 17: In which country Private sector lender ICICI Bank has opened a full-service branch?
(A) South Africa
(B) Canada
(C) America
(D) China
Answer : A
Q 18: The commission charged by a broker is
(A) Brokerage Fee
(B) Brokerage Profit
(C) Brokerage Interest
(D) Brokerage Salary
Answer : A
Q 19: At Present the FDI limit in insurance sector is
(A) 39 %
(B) 49 %
(C) 59 %
(D) 69 %
Answer : B
Q 20: Which among the following banks form the “Imperial Bank of India” in 1921
(A) Bank of Bombay
(B) Bank of Madras
(C) Bank of Bengal
(D) All of the Above
Answer : D
Q 21: Headquarter of IRDAI is located at
(A) Mumbai
(B) Chennai
(C) Ahmedabad
(D) Hyderabad
Answer : D
Q 22: National Development Council was constituted in ____________.
(A) 2 August, 1952
(B) 6 August, 1952
(C) 8 August, 1952
(D) 12 August, 1952
Answer : B
Q 23: Who is the ex- officio chairman of ‘National Child Labour Abolition Authority’
(A) Prime Minister
(B) Home Minister
(C) Finance Minister
(D) Labor Minister
Answer : D
Q 24: If cheque is issued by a bank in the same city as the payee, the cheque will be called
(A) Outstation Cheque
(B) Local Cheque
(C) At par Cheque
(D) None of These
Answer : B
Q 25: SCORES stands for
(A) SEBI Complaints Redress System
(B) Special Complaints Redress System
(C) SBI Complaints Redress System
(D) SIDBI Complaints Redress System
Answer : A
Q 26: Banking companies act passed in:
(A) 1939
(B) 1949
(C) 1959
(D) 1969
Answer : B
Q 27: NREGA was renamed with the name of
(A) Indira Gandhi
(B) Rajiv Gandhi
(C) Mahatma Gandhi
(D) Sonia Gandhi
Answer : C
Q 28: Mutual Funds investments can be effectively canvassed among
(A) Only Salaried persons
(B) Students availing education loans
(C) HNI customers
(D) sunrise industries
(E) poor farmers
Answer : C
Q 29: Product design is a function of
(A) Front office staff
(B) back office staff
(C) management
(D) marketing and research team
(E) loan section
Answer : D
Q 30: Which state owned bank of India has decided to exit its South Africa operations?
(A) Punjab National Bank
(B) Bank of Baroda
(C) IDBI Bank
(D) Axis bank
(E) Canara Bank
Answer : B
Q 31: Financial planning is required when
(A) one has no income
(B) one is flushed with funds
(C) one has no expense to incur
(D) one is illiterate
(E) income level is sufficient to meet the expenses
Answer : E
Q 32: Mutual Fund business from existing customers can be canvassed by
(A) coercion
(B) cross-selling
(C) internal marketing
(D) outdoor marketing
(E) road-shows
Answer : C
Q 33: Which of the following is also known as consumer banking?
(A) Retail Banking
(B) State Bank
(C) Universal Banking
(D) Business Banking
(E) None of the these
Answer : A
Q 34: Which of the following is India’s first Credit Information Company?
(A) CRISIL
(B) SMERA
(C) ICRA
(D) CIBIL
Answer : D
Q 35: Directorate General of Foreign Trade (DGFT) has put imports of gold dore in restricted category. Gold dore is an alloy of –
(A) Gold and copper
(B) Gold and platinum
(C) Gold, silver and copper
(D) Gold and mercury
(E) Gold and silver
Answer : E
Q 36: Which of the following acts regulates the underwriting process in India?
(A) RBI Act 1934
(B) Securities and Exchanges Board of India (Underwriters) Regulations, 1993.
(C) Securities and Exchanges Board of India (Underwriters) Regulations, 2006.
(D) Both (B) and (C)
Answer : D
Q 37: Corporate loans are offered to applicants who have established their business for how many years in India?
(A) 5
(B) 6
(C) 2
(D) 7
Answer : A
Q 38: Which of the following countries has the largest Mutual Fund market in the World?
(A) USA
(B) Japan
(C) China
(D) Brazil
Answer : A
Q 39
: The term ATM stands for which of the following?
(A) Automatic teller machine
(B) Automated teller mechanism
(C) Automated teller machine
(D) None of these
Answer : A
Q 40: MSME is defined under which act?
(A) MSMED Act, 2006
(B) MSME Act, 2001
(C) MSMED Act, 1999
(D) MSME Act, 2004
Answer : A
Q 41: When was ICICI bank founded?
(A) 1991
(B) 1992
(C) 1993
(D) 1994
Answer : D
Q 42: Who regulates the functioning of District Cooperative Banks in India?
(A) State Government
(B) RBI
(C) State Cooperative Banks
(D) None of these
Answer : B
Q 43: Credit Cards are a convenient substitute for which of the following?
(A) Cash
(B) Cheque
(C) Both 1 and 2
(D) None of The Above
Answer : C
Q 44: Which of the following is true about merchant bank?
(A) Underwrites securities for corporations
(B) Advice clients on mergers
(C) Involved in ownership of commercial ventures
(D) All of the above
Answer : D
Q 45: _________Bank has introduced the first Credit Card in India.
(A) Union Bank of India
(B) UTI Bank
(C) Axis Bank
(D) Central Bank of India
(E) Bank of India
Answer : D
Q 46: ____________ became India’s first all woman bank.
(A) Dhanlaxmi Bank
(B) Lakshmi Vilas Bank
(C) Suryodaya Finance Bank
(D) Bharatiya Mahila Bank
(E) Utkarsh Finance Bank
Answer : D
Q 47: ____________ Bank has introduced first ATM in India.
(A) SBI
(B) ICICI
(C) HSBC
(D) Axis
(E) City Bank
Answer : C
Q 48: BHIM Stands for _______
(A) Bharat Interface for Money
(B) Bharat Heavy Interface for Money
(C) Bharat Heavy Interface Money
(D) Bharat High Interface for Money
(E) None of these
Answer : A
Q 49: How much % GST levied on Mobile Phones?
(A) 12%
(B) 28%
(C) 5%
(D) 18%
(E) None of these
Answer : A
Q 50: The headquarters of AU Small Finance Bank is ______
(A) Hyderabad
(B) Chennai
(C) Jaipur
(D) Bengaluru
(E) None of these
Answer : C
Q 51: Which of the following is a fraud investigating agency in India?
(A) NEFT
(B) IMPS
(C) SWIFT
(D) MZM
(E) SFIO
Answer : E
Q 52: _________ is a cheque written by the drawer(payer) for a date in the future.
(A) Bearer Cheque
(B) Anti-Dated Cheque
(C) Open Cheque
(D) Post-Dated Cheque
(E) Crossed Cheque
Answer : D
Q 53: The process of remitting foreign money to a country is called ______
(A) Inward Remittance
(B) Foreign Remittance
(C) Commercial banking
(D) Wholesale banking
(E) None of these
Answer : A
Topics Covered in Banking Exam Section
This section provides chapterwise questions of 5 banking awareness questions each
- History of Banking
- History of Reserve Bank of India
- Major Provisions of RBI Act
- Banking Regulation Act
- Nationalization of Banking
- Banking Reforms During Liberalization
- Major Banking Reforms of 21st century
- Types of Banking
- Types of Banks
- Public Sector Banks
- Private Sector Banks in India
- Foreign Banks in India
- Cooperative Banks in India
- Regional Rural Banks
- Local Area Banks
- Development Financial Institutions (DFIs)
- Small Finance Banks
- Payment Banks
- Banking Correspondents
- Structure of RBI
- Important Boards and Committees of RBI
- Monetary Policy of Reserve Bank of India
- RBI Functions – Regulation of Banks
- RBI Functions – Currency Administration
- RBI Functions – Banker and Debt Manager for Governments
- RBI Functions – Banker to other banks
- RBI Functions – Custodian of Foreign Exchange
- Overview of Banking Business
- Bank Deposits
- Bank Accounts
- Lending Operations
- Lending Risks and Non-performing Assets
- Debit Cards & Credit Cards
- Micro-Credit and Micro-Finance
- Credit to Micro, Small and Medium Enterprises
- Payment of Pension to Government Pensioners
- Lead Bank Scheme
- Financial Inclusion
- Self-Help Groups
- ATMs
- Banking Ombudsman Scheme
- Various Saving Schemes and Products
- Various Negotiable Instruments
- Concepts Related to Negotiable Instruments
- Methods of Remittance
- Technology in Remittance
- Payment Systems
- Payment and Settlement Systems Act, 2007
- NEFT, RTGS and IMPS
- Bharat Bill Payment System (BBPS)
- BHIM and UPI
- Internet & Mobile Banking
- Indian Money Market – Structure and Features
- Instruments of Money Market
- Regulation of Money Market in India
- Monetary Aggregates and Money Supply
- Capital Market in India
- Capital Market Instruments
- Derivatives and Futures
- Capital Market Terminology
- Various Types of Non-banking Financial Companies
- NBFC – Peer to Peer Lending Platform
- NBFC-MFIs
- Core Investment Companies
- Infrastructure Finance Companies (IFCs)
- Infrastructure Debt Funds
- NBFC – Factors
- Various Types of Financial Services
- Merchant Banking
- Issue Management
- Underwriting
- Debenture Trustees
- Portfolio Management
- Leasing Services
- Hire Purchase
- Factoring Business
- Venture Capital
- Housing Finance
- Housing Loans
- Personal Loans
- Corporate Loans
- Mutual Funds
- Credit Rating
- India\’s Foreign exchange Reserves
- Role of RBI and Banks in Foreign Exchange Management
- FERA and FEMA
- Digital Public Credit Registry
- Aadhaar and E-KYC in Banks