R4RIN – MCQs, Mock Tests | UPSC,PCS,CDS,NDA Banking Awareness MCQs Part1

The Vedic word Kusidin refers to _?

1. A banker
2. An usurer
3. A farmer
4. A trader

✅ Correct Answer: 2

What was the initial share capital of Reserve Bank of India?

1. Rs. 5 Crore
2. Rs. 10 Crore
3. Rs. 15 Crore
4. Rs. 20 Crore

✅ Correct Answer: 1

How many Aadhaar Enrolment and Update Centres in total are there in India?

1. 17000
2. 13000
3. 11000
4. 60000

✅ Correct Answer: 2

Which of the following are among the Credit Bureaus present in India?

1. Equifax
2. CRIF Highmark
3. Credit Information Bureau India Limited
4. All of the above

✅ Correct Answer: 4

Which of the following correctly define the Foreign Exchange (Forex) Market?

1. It is a market where only Foreign currency is used.
2. It is a market where foreign currencies are bought and sold simultaneously.
3. It is a physical market where only foreigners are allowed.
4. None of the Above

✅ Correct Answer: 2

What is the full form of MDER?

1. Market Determined Exchange Rate
2. Market Derivative Exchange Rate
3. Market Determined Exchange Regime
4. Managed Determined Exchange Rate

✅ Correct Answer: 1

Liberalized Exchange Rate Management System (LERMS) is effective from which of the following dates?

1. June 1,1993
2. March1,1993
3. April1,1993
4. July 1,1993

✅ Correct Answer: 2

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

1. CRISIL
2. SMERA
3. ICRA
4. CIBIL

✅ Correct Answer: 4

What is the full form of CRISIL?

1. Credit Rating Information Services of India Limited
2. Credit Rating Investment Services of India Limited
3. Credit Rating Indian Services for Investment and Liability
4. Credit Rating Insight Services of India Limited

✅ Correct Answer: 1

Who is the CEO of the CRISIL?

1. Ashu Suyash
2. Rajesh Mokashi
3. Naresh Takkar
4. Varun Mirchandani

✅ Correct Answer: 1

The need for Venture Capital Financing was highlighted by which of the following committee in India?

1. Bhatt Committee
2. Gadgil Committee
3. Urjit Patel Committee
4. None of the Above

✅ Correct Answer: 1

Which type of Fund is required to be listed on Stock Exchange?

1. Debit Fund
2. Liquid Fund
3. Close Ended Funds
4. Sector Funds

✅ Correct Answer: 3

Which of the following organizations is the Mutual Fund market regulator in India?

1. SEBI
2. RBI
3. ICICI
4. CIBIL

✅ Correct Answer: 1

What is the full form of NAV?

1. Net Assessment Value
2. National Asset Value
3. Net Asset Value
4. National Asset Variation

✅ Correct Answer: 3

Which of the following funds is basically an index fund which trades like a closed-end fund?

1. Open-end fund
2. Money market fund
3. Mutual fund
4. Exchange-traded fund

✅ Correct Answer: 4

HFC stands for which of the following?

1. Housing Finance Company
2. Housing Finance Corporation
3. Housing Federation of Commerce
4. None of The Above

✅ Correct Answer: 1

Which of the following acts regulates the underwriting process in India?

1. RBI Act 1934
2. Securities and Exchanges Board of India (Underwriters) Regulations, 1993.
3. Securities and Exchange Board of India (Underwriters) (Amendment) Regulations, 2006
4. Both b and c

✅ Correct Answer: 4

Who was the head of review committee on underwriting rules and regulation ?

1. Shri Vallabh Bhansali
2. C. Rangarajan
3. Urjit Patel
4. Nandan Nilekani

✅ Correct Answer: 1

In which year the Royal Commission on Indian Currency and Finance recommended the creation of a central bank for India?

1. 1926
2. 1927
3. 1928
4. 1929

✅ Correct Answer: 1

Which section of RBI Act states that the RBI has the exclusive rights to issue currency notes in India?

1. 17
2. 19
3. 21
4. 22

✅ Correct Answer: 4

Which section of RBI is not correctly matched?

1. Section 26 – describes the legal tender character of Indian bank notes.
2. Section 18 – manner in which RBI can conduct business
3. Both a and b
4. None

✅ Correct Answer: 2

What is Section 7 of the RBI Act 1934?

1. It allows RBI to buy and sell Foreign currency
2. It empowers the government to issue directions to the RBI
3. It allows the RBI to appoint its own staff
4. None

✅ Correct Answer: 2

Which of the following entities are not covered under the Banking Regulation Act 1949?

1. Public Sector banks
2. Cooperative Banks
3. Primary Agricultural Credit Society
4. All of the above

✅ Correct Answer: 3

How many banks were Nationalised in 1969 under the Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1969?

1. 15
2. 14
3. 13
4. 11

✅ Correct Answer: 2

When was the Banking Ombudsman scheme first introduced in India?

1. 1995
2. 1998
3. 1999
4. 2001

✅ Correct Answer: 1

What was the target set by Narasimham-II Committee for the capital adequacy ratio of the banks by the year 2000?

1. 8%
2. 9%
3. 10%
4. 11%

✅ Correct Answer: 2

When was National Investment and Infrastructure Fund created?

1. 2011
2. 2015
3. 2012
4. 2014

✅ Correct Answer: 2

In which year Reserve Bank of India introduced cheque truncation system?

1. 2008
2. 2009
3. 2010
4. 2011

✅ Correct Answer: 1

What is the banking, where all banking operations are online, known as?

1. Virtual Banking
2. Retail Banking
3. Mixed Banking
4. Social Banking

✅ Correct Answer: 1

What is the banking known as when a group of persons come together to own and control three or more independently chartered banks?

1. Chain banking
2. Unit banking
3. Merchant banking
4. None of the above

✅ Correct Answer: 1

Which is the 3rd largest foreign bank of India in terms of branches?

1. HSBC
2. Citi
3. Standard Chartered
4. Royal bank of Scotland

✅ Correct Answer: 1

Where was the first society under Cooperative Societies Act 1904 registered in India?

1. Madurai
2. Kanjipoorum
3. Gaya
4. Panaji

✅ Correct Answer: 2

Which nationalised bank sponsored the Prathama Bank?

1. Syndicate bank
2. Punjab National Bank
3. State Bank of India
4. Allahabad Bank

✅ Correct Answer: 1

Which is the smallest Local Area Bank in India?

1. Subhadra Local Area Bank Ltd
2. Coastal Local Area Bank Ltd
3. Capital Local Area Bank Ltd
4. Krishna Bhima Samruddhi Local Area Bank Ltd

✅ Correct Answer: 1

When were the Local Area Banks were set up first in India?

1. 1994
2. 1995
3. 1996
4. 1998

✅ Correct Answer: 3

Which of these accounts can be opened in a Payment Bank?

1. Savings Account
2. Current Account
3. Both a and b
4. None

✅ Correct Answer: 3

Which of these entities surrendered their Payments Bank license?

1. Cholamandalam Distribution Services
2. Sun Pharmaceuticals
3. Tech Mahindra
4. All of the above

✅ Correct Answer: 4

Which of the following activities can be undertaken by a Business Correspondent?

1. Selling mutual fund products
2. Selling Pension products
3. Extending small credit on behalf of the banks
4. All of the above

✅ Correct Answer: 4

What is meant by Open Market Operations?

1. Purchase and sale of the Government Securities by RBI
2. Rationing of the credit allocated by commercial banks by RBI
3. Request by the RBI to the commercial banks to take certain measures
4. None of the above

✅ Correct Answer: 1

What is meant by KYC?

1. Keep your Customer
2. Know your Credit
3. Keep your Credit
4. Know your Customer

✅ Correct Answer: 4

When was the Banking correspondent scheme launched by RBI?

1. 2002
2. 2005
3. 2001
4. 2006

✅ Correct Answer: 4

Till when the RBI served as the central bank of Pakistan?

1. 12:00:00 AM
2. 12:00:00 AM
3. 12:00:00 AM
4. 12:00:00 AM

✅ Correct Answer: 3

When was the decimalization of the coinage done in India?

1. 1957
2. 1955
3. 1947
4. 1935

✅ Correct Answer: 1

Which of these facilities is given by RBI to the banks for inter-bank transactions?

1. RTGS
2. SWIFT
3. M-PESA
4. All of the above

✅ Correct Answer: 1

Why do banks borrow money in the call money market?

1. To meet sudden demand for funds arising out of large outflows
2. To fill the temporary mismatches in funds
3. To meet the Statutory reserve requirements
4. All of the above

✅ Correct Answer: 4