100 IMPORTANT QUESTIONS FOR BANK EXAMS

100 IMPORTANT QUESTIONS FOR BANK EXAMS

Here, 100 important questions from Banking & Financial Awareness are given. All the questions are collected from previous exams of 10 years.

1. UPI stands for:

Ans- Unified Payment Interface.

2. BHIM app was launched by:

Ans- NPCI (National Payment Corporation of India.)

3. Largest custodian & Depository participant of India:

Ans- SHCIL.

4. SHCIL was established in 1986 as a public limited company based in Mumbai. SHCIL stands for:

Ans- Stock holding corporation of India Limited.

5. Chairperson of payment regulatory board:

Ans- The RBI governor.

6. Monetary policy is setup under:

Ans- RBI Act, 1934 and amended in May 2016.

7. World’s first inter operable payment acceptance solutions:

Ans- Bharat QR code.

8. Tagline of Indian post payment bank (IPPB):

Ans- Apka Bank Apke Dwar.

9. Headquarter of Ujjavan financial services situated:

Ans- Bengaluru.

10. Headquarter of AU financiers:

Ans- Jaipur.

11. Headquarter of IBBI (Insolvency & Bankruptcy Board of India):

Ans- New Delhi.

12. RERA Act was effective on 1 May 2017, RERA stands for:

Ans- Real Estate Regulatory Authority.

13. Bharat QR code is devised by:

Ans- NPCI (National payment corporation of India).

14. How many numbers of swift code can be:

Ans- 8 or 11.

15. Regional Rural Banks (RRBs) are regulated by:

Ans- NABARD.

16. Payment Bank was recommended by:

Ans- Nachiket Mor committee.

17. MUDRA is wholly owned subsidiary of SIDBI, and maximum loan limit is Rs.10.00 lakhs under MUDRA. MUDRA stands for:

Ans- Micro Units Development & Refinance Agency.

18. Minimum & Maximum term of FD:

Ans- 7-days & 10-years respectively.

19. Dishonour of cheque for Insufficient funds comes under:

Ans- Section 138 of NI Act,1881.

20. KYC (know your customer) was introduced by RBI in India:

Ans- 2002.

21. Head quarter of payment bank is in New Delhi, First payment bank of India:

Ans- Airtel payment bank.

22. White label ATMs are registered under:

Ans- Payment and settlement system act, 2007.

23. Umbrella organisation for all payments system in India:

Ans- NPCI.

24. In India maximum denomination of Rupee note can be:

Ans- Rupee 10,000/-

25. FERA & FEMA are related to:

Ans- Foreign exchange.

26. Size of Rs.2000 (Magenta colour) and Rs.500 (Grey colour) Indian note:

Ans- 166mm*66mm & 150mm*66mm.

27. First credit rating company of India:

Ans- CIBIL.

28. First credit rating agency of India:

Ans- CRISIL.

29. How many digits are MICR (Magnetic Ink credit Recognition) code:

Ans- 9.

30. Minimum transaction limit under RTGS is Rs.2.00 lakhs, whereas minimum limit under NEFT is:

Ans- No limit.

31. Fastest stock exchange of the world:

Ans- Bombay stock Exchange (BSE).

32. Bear & Bulls terms are related to:

Ans- Share market.

33. Call money refers to the borrowing and lending funds for:

Ans- 1-day.

34. Minimum & maximum period to issue commercial paper is:

Ans- 7-days & 12-months.

35. ASBA (Application supported by Blocked amount) and FII (Foreign institutional Investors) are regulated by:

Ans- SEBI (Securities and Exchange Board of India).

36. Headquarter of BBB (Bank’s Board Bureau) is at:

Ans- Mumbai.

37. CTS issues comes under:

Ans- Section 6B of NI Act 1881.

38. Head of CERSAI is Mr. Praveen Kumar Sharma. CERSAI stands for:

Ans- Central Registry of Securitization Asset Reconstruction Security Interest.

38. Head office of SIDBI (Small Industries Development Bank of India) is in Lucknow. Who is the chairman of SIDBI?

Ans- Sivasubramanian Raman.

39. Premium for PMSBY (Pradhan Mantri Suraksha Bima Yojna) & PMJJBY (Pradhan Mantri Jivan Jyoti Yojna):

Ans- Rs.12 & Rs.330 respectively.

40. Age limit under PMSBY & PMJJBY:

Ans- PMSBY- 18-70 years, PMJJBY- 18-50 years.

41. First RRB bank was:

Ans- Prathma Gramin Bank (Syndicate Bank).

42. Which account is used for trading of shares with share market?

Ans- Demat Account.

43. Interest on PPF (Public Provident Fund) account is decided by:

Ans- Govt. of India.

44. SLR (Statutory Liquidity Ratio) is determined by RBI in order to control:

 Ans- In order to control expansion of Bank credit.

45. All bill of exchange, promissory notes are regulated by:

Ans- Negotiable Instrument Act, 1881.

46. Export credit agencies of India:

Ans- EXIM Bank, ECGC.

47. BASEL is a set of international banking regulation put forth by the Basal committee on Bank Supervision (BCBS) with the goal of minimizing credit risk. Head office of BASEL is:

Ans- Switzerland.

48. How much %age of equity Government of India holds in IPPB (Indian post payment Bank)?

Ans- 100%.

49. Financial year of all commercial banks & NBFC:

Ans- April-March.

50. Financial year of RBI:

Ans- July-June.

51. APBS stands for:

Ans- Aadhar payment bridge system.

52. UMANG is developed by Ministry of Electronics and Information Technology & National E-governance division to govern mobile governance in India. UMANG stands for:

Ans- Unified mobile application for new-age governance.

53. DARPAN stands for:

Ans- Digital Application for review by public and Nation.

54. What is the full form of VPA?

Ans- Virtual payment Address.

55. Government gets maximum revenue from:

Ans- Corporate tax.

56. Term DALAL street is used in:

Ans- Bombay stock exchange (BSE).

57. Contingency fund in India is headed by:

Ans- President of India.

58. 1^st rupee bond listed in London stock exchange:

Ans- Masala Bond.

59. Largest global development institutes focused mainly on private sectors in developing countries:

Ans- IFC (International Finance Corporation).

60. SDR (special drawing rights also known as paper gold) used by:

Ans- IMF (International Monetary Fund).

61. 1^st export processing zone of India & Asia:

Ans- Kandla.

62. Inflation is (1) beneficial & (2) harmful for:

Ans- (1) Borrower & (2) Lenders.

63. Which city is called financial capital of India:

Ans- Mumbai.

64. Biggest stock exchange of India:

Ans- NSE (National stock exchange).

65. Web portal to measure elementary education progress in India under Sarva Shiksha Abhiyan:

Ans- Shagun.

66. Scheme Pradhan Mantri Kaushal yojana is implemented by:

Ans- NSDL (National skill development corporation).

67. Stand Up scheme is operated by:

Ans- NCGTL (National credit guarantee trustee company limited.)

68. Committee recommended for digital payments:

Ans- Ratan P. Watal committee.

69. India’s 1^st international financial service centre:

Ans- Gandhinagar (Gujarat).

70. To resolve all tax related issues GOI launched the scheme:

Ans- E-Nivaran.

71. NABARD has initiated project under Micro credit & Innovation department to digitalise self help groups. Project is?

Ans- E-shakti.

72. Zero Deficits, Zero Effect scheme is related to:

Ans- Increase quality of products of MSME.

73. The College of Agricultural Banking, a training centre of RBI is situated at:

Ans- Pune (Maharashtra)

74. IDRBT (Institute for Development and Research in Banking Technology) is situated at:

Ans- Hyderabad.

75. The interest rate charged by banks to their largest, most secure and most credit worthy customers or short-term loans is called:

Ans- PLR (Prime lending rate.)

76. The minimum interest rate of a bank below which it can not lend, except in case allowed by RBI is known as:

Ans- Base Rate.

77. 1^st Indian governor of RBI:

Ans- C.D. Deshmukh.

78. Paid-up capital and collected funds of scheduled banks must not be less than:

Ans- 5 lakhs.

79. RRBs were established on 26 September, 1975 under the RRB Act, 1976 on the recommendation of:

Ans- Narasimhan committee.

80. RRBs are jointly owned by GOI, the concerned state government and Sponsor banks in the share ratio of:

Ans- 50%, 15% and 35% respectively.

81. The minimum paid-up capital required for payment banks is:

Ans- 100 crore.

82. Bandhan bank (HQ- Kolkata) the 1^st bank setup in eastern part of India after independence founded on 23 August 2015. Tagline of Bandhan Bank is:

Ans- Aapka Bhala, Sabki Bhalai.

83. MUDRA loan is categorised under three loan instruments, i.e., Shishu, Kishor and Tarun. What is the loan limit under these three head?

Ans- Shishu- Up to Rs.50,000, Kishor- Above Rs.50,000 up to 5 lakhs, Tarun- Above Rs.5,00,000 and up to 10 lakhs.

84. The type of banking which promotes environment friendly practices and reduces carbon-footprint from banking activities called:

Ans- Green Banking.

85. KCC (Kisan credit card) was started in 1998-99 by Government of India, RBI and NABARD on recommendation of:

Ans- R V Gupta committee.

86. The NPA account for a period not exceeding 12-months is called:

Ans- Sub-standard Assets.

87. What are Doubtful Assets?

Ans- It is one which has remained NPA for a period exceeding 12-months.

88. If a cheque bears a date earlier than the date on which it is presented to the bank, it is called?

Ans- Anti-dated cheque.

89. If a cheque is presented for payment after three months from the date of issue the cheque, it is called?

Ans- Stale cheque. It is not honoured by the bank.

90. The globally traded currency such as, (UK pound, U.S dollar) that serves as a reliable and stable store of value is called:

Ans- Hard Currency or Safe heaven currency.

91. Currency which is expected to fluctuate or depreciate against other currencies, typically due to political or fiscal instability within the associated country is termed as:

Ans- Soft Currency.

92. In financial market, the flow of funds from one country to another in order to earn a short-term profit on interest rate differences and anticipated exchange rate shifts refers to:

Ans- Hot Money.

93. A situation in which loans are very difficult to obtain in a given country due to high interest rate is called:

Ans- Dear Money. Also called Tight money.

94. Non-cash Assets which are highly liquid such as, bank deposits, treasury bills and can be quickly converted into cash:

Ans- Near Money (Also called Quasi-money)

95. A banknote of which a portion is missing or which is composed of more than two pieces called as:

Ans- Mutilated Note.

96. Coins are minted under:

Ans- Section 6 of the coinage Act, 2011. As per this act GOI can issue coins up to denomination of Rs.1000/-.

97. To improve the governance of public sectors bank, union government set up autonomous body called BBB (Banks Board Bureau) on 1 April, 2016. HQ of BBB is:

Ans- Mumbai.

98. SARFAESI Act, 2002empowers banks to recover their NPA loans (with outstanding above Rs.1.00 lakhs) without the intervention of court. SARFAESI stands for:

Ans- Securitization and Reconstruction of financial Assets & Enforcement of security Interest.

99. What is MICR? What MICR stands for?

Ans- MICR have 9-digits, first 3-digits represent city code of the bank where bank located and next 3-digits represent bank code and last 3-digits represent Bank branch code. Magnetic Ink Character Recognition.

100. SWIFT stands for?

Ans- Society for Worldwide Interbank Financial Telecommunication. HQ- La Hulpe, Belgium.

Read also…
INFLATION-EFFECTS, MEASURES & CAUSES
MONETARY POLICY BY RBI
INSTRUMENTS OF MONETARY POLICY