Banking: Solved 705 Banking Questions and answers section with explanation for various online exam preparation, various interviews, Logical Reasoning Category online test. Category Questions section with detailed description, explanation will help you to master the topic.

Banking Questions

1. In India the inflation is calculated on the basis of which of the following indexes?




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Correct Ans:Consumer Price Index (CPI)
Explanation:
To calculate inflation, the inflation computing agency collects the prices of identified commodities. It takes into account Consumer Price Index (CPI).


2. Which funds transfer system involves transfer of money from one bank to another on a "real time" basis?




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Correct Ans:RTGS
Explanation:
Real-time gross settlement systems (RTGS) are specialist funds transfer systems where transfer of money or securities takes place from one bank to another on a "real time" and on "gross" basis. Settlement in "real time" means payment transaction is not subjected to any waiting period.


3. The account in which trading of shares in their electronic form is done is known as _____.




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Correct Ans:Demat Account
Explanation:
In India, shares and securities are held electronically in a dematerialized account or Demat Account, instead of the investor taking physical possession of certificates. A Dematerialized account is opened by the investor while registering with an investment broker (or sub-broker).


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4. Which of the following category of cheques is valid only in a given city and a given branch in which drawer has an account?




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Correct Ans:Local Cheque
Explanation:
Local cheque is valid only in the given city and a given branch in which drawer has an account.


5. Name the city which ranked first in the first-ever Prosperity & Inclusion City Seal and Awards (PICSA) Index?




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Correct Ans:Zurich, Switzerland
Explanation:
• The first-ever Prosperity & Inclusion City Seal and Awards (PICSA) Index, released in the Basque Country capital of Bilbao in northern Spain.

• The Index is designed to showcase not only the quantity of economic growth of a city but also its quality and distribution across populations.

• Zurich (number-1) scores strongly across all measures, particularly on the quality of life, work, housing, leisure, safety, and education - with the Swiss higher education system attaining an especially high score.

• Austrian capital (number- 2) scores close to top marks on healthcare. Copenhagen, Luxembourg and Helsinki complete the top five.


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6. The India arm of Netherlands-based Home Credit Group has tied up with which bank for joint lending to tap the large unbanked customer base across the country?




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Correct Ans:Karur Vysya Bank
Explanation:
The India arm of Netherlands-based Home Credit Group has tied up with Karur Vysya Bank (KVB) for joint lending to tap the large unbanked customer base across the country.


7. Which among the following Banks has become the first Indian Bank to link up with China's National Advance Payment System (CNAPS)?




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Correct Ans:State Bank of India
Explanation:
The State Bank of India's Shanghai branch is now connected to China's National Advance Payment System (CNAPS), becoming the first Indian Bank to operationalise it.


8. Name the payment technology company which tied up with Indian Cricketer M.S. Dhoni to launch a nationwide initiative ‘Team Cashless India‘ to accelerate the acceptance and adoption of digital payments in India?




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Correct Ans:Mastercard
Explanation:
Mastercard has tied up with Indian Cricketer M.S. Dhoni (brand ambassador of Mastercard) to launch a nationwide initiative to accelerate the acceptance and adoption of digital payments in India.


9. Name the financial service company which received a non-banking finance company license from the Reserve Bank of India (RBI)?




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Correct Ans:Vreedhi Financial Services
Explanation:
Vreedhi Financial Services (VFS) has secured a non-banking finance company license from the Reserve Bank of India (RBI).


10. What is an 'ante-dated' cheque?




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Correct Ans:A cheque which is written by the drawer and dated at some date in the past but not yet expired.
Explanation:
Cheque written by drawer and dated at some point in past is called as the ante-dated cheque.

Example- If drawer writes a cheque on 1st February but he put the date 1st January. This type of cheque is called antedated cheque.


11. Sub Prime Lending' is a term applied to the loan made to ___.




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Correct Ans:those borrowers who do not have a good credit history
Explanation:
In finance, Sub Prime Lending means making loans to people who may have difficulty maintaining the repayment schedule, sometimes reflecting setbacks, such as unemployment, divorce, medical emergencies, etc.


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12. The headquarter of Rabobank is in ______.




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Correct Ans:Utrecht, Netherlands
Explanation:
Rabobank is a Dutch multinational banking and financial services company headquartered in Utrecht, Netherlands. It is the global leader in food and agriculture financing and sustainability-oriented banking.


13. The mobile banking app “LIME” was introduced by which of the following banks?




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Correct Ans:AXIS
Explanation:
Axis bank had launched mobile banking app “LIME”.


14. What is the rank of Bengaluru in the first-ever Prosperity & Inclusion City Seal and Awards (PICSA) Index?




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Correct Ans:83rd
Explanation:
• The first-ever Prosperity & Inclusion City Seal and Awards (PICSA) Index, released in the Basque Country capital of Bilbao in northern Spain.

• The Index is designed to showcase not only the quantity of economic growth of a city but also its quality and distribution across populations.

• Bangalore stood at 83rd rank, while Delhi and Mumbai ranked 101 and 107 among 113 cities in the world in terms of economic and social inclusivity.

• Zurich (number-1) scores strongly across all measures, particularly on the quality of life, work, housing, leisure, safety, and education - with the Swiss higher education system attaining an especially high score.

• Austrian capital (number- 2) scores close to top marks on healthcare. Copenhagen, Luxembourg and Helsinki complete the top five.


15. Which of the following banks has launched UCash, a digital product that will enable customers to withdraw money from ATMs through mobile banking without using a debit card?




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Correct Ans:Uco Bank
Explanation:
Public sector lender, the Uco Bank has launched three new digital products namely UCash, Digilocker and an app.


16. ICICI Lombard has been partnering with which Payments Bank to offer non-life insurance solutions to its customers?




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Correct Ans:Fino Payments Bank
Explanation:
ICICI Lombard has been partnering with ‘Fino Payments Bank’ to offer non-life insurance solutions to its customers.


17. Name the Non-Banking Finance Company (NBFC) which has acquired the Mutual Fund (MF) business worth Rs. 215 crores of IDBI Bank?




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Correct Ans:Muthoot Finance
Explanation:
Kerala based non-banking finance company Muthoot Finance has entered into an agreement with IDBI Bank in acquiring its Mutual Fund business for 215 crores.


18. The Securities and Exchange Board of India (SEBI) has doubled the minimum investment limit for clients of Portfolio Management Services to _______.




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Correct Ans:Rs. 50 lakh
Explanation:
Securities and Exchange Board of India has doubled the minimum investment limit for clients of Portfolio Management Services to Rs 50 lakh.


19. MSF is the rate at which banks can borrow overnight from RBI. What is the full form of MSF?




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Correct Ans:Marginal Standing Facility
Explanation:
MSF (Marginal Standing Facility Rate) is the rate at which banks can borrow overnight from RBI. This was introduced in the monetary policy of RBI for the year 2011-2012. Banks can borrow funds through MSF when there is a considerable shortfall of liquidity.


20. Which of the following is not a technique/tool/instrument of money/credit control by the Reserve Bank of India?




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Correct Ans:Monopoly to issue currency
Explanation:
The Paper Currency Act of 1861 conferred upon Government of India the monopoly of Note Issue bringing to an end note issues of Private and Presidency Banks. Paper currency in India owed much to the intellectual stimulus and personal dynamism of Sir James Wilson, the first Finance Member in the Executive Council of the Viceroy of India. With the early death of Sir James, the task of issuing Government Paper Money in India devolved upon his successor Samuel Laing who substantially modified Wilson's original proposals.





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