Banking Awareness Quiz (Miscellaneous)

1. Which of the following is the first Universal Bank established in India? 

1) IDBI Bank Ltd. 

2) ICICI Bank ltd.

3) Reserve bank of India 

4) NABARD 

5) HDFC Bank Ltd.

2. Local Area Banks 

1) are licensed under the Banking Regulation Act, 1956 

2)are eligible for inclusion in the Second Schedule to the Reserve bank of India Act, 1934 

3) Have minimum paid up capital of Rs. 5 crore with promoters’ contribution being at least Rs. 2 crore 

4) all of the above                 

5) none of the above 

3. The promoters of Local Area Banks may comprise 

1) individuals 

2) corporate entities 

3) trusts and societies 

4) accepts deposits from public 

5) all of the above 

4. The regional Rural Banks are sponsored by

1) Unit Trust of India               

2) Reserve Bank of India 

3) Life Insurance Corporation of India      

4) NABARD 

5) Any Scheduled Commercial bank 

5. RRBs are permitted to undertake corporate agency business, without risk participation, for distribution of all types of insurance products, including health and animal insurance subject to the condition that 

1) The bank should comply with the Insurance Regulatory and Development Authority (IRDA) regulations for acting as composite corporate agent’. 

2) The bank should not adopt any restrictive practice of forcing its customers to go in only for a particular insurance company in respect of assets financed by the bank 

3) The risks, if any, involved in insurance agency should not get transferred to the business of the bank 
4) none of the above 

5) all of the above 

6. Deposits with Regional Rural Banks are insured by 

1) Life Insurance Corporation of India 

2) General Insurance corporation 

3) Deposits Insurance and Credit Guarantee corporation 

4) None of the above      

5) all of the above 

7. Under the Banking Regulation Act, 1949, which of the following is not qualified to be called as banks in the co-operative sector? 

1) Urban Co-operative banks 

2) State Co-operative banks 

3) Primary Agricultural Credit Societies 

4) Central Co-operative Banks 

5) None of the above 

8. Central co-operative banks 

1) occupy a crucial importance in the co-operative credit structure 

2) from an important link between the state co-operative bank at the apex and the primary agricultural credit societies at the base 

3) are closer to the primary societies than an apex bank could be 

4) all of the above 

5) none of the above 

9. The primary function of a central co-operative bank is to 

1) mobilize the resources in the district for financing its members to the maximum extent possible 

2) to channelise the flow of funds from the co-operative banks 

3) both of the above  

4) all of the above   

5) none of the above 

10. The term ‘Merchant Banking’ connotes 

1) Services rendered by banks for merchants and traders capital requirements to merchants covered under DICGC Guarantee Scheme 

2) Telegraphic transfers effected by merchants 

3) catering to the needs of corporate customers raising finance      

4) All of the above

5) none of the above 

11. Under merchant banking, consultancy services are rendered by banks/merchant bankers for 

1) floating of new companies 

2) preparation, planning and execution of new projects  

3) giving expert guidance and managing the new promotions or new promotions of industries/enterprises 

4) all of the above 

5) none of the above 

Answers - 

1.) 2
2.) 4
3.) 5
4.) 5
5.) 5
6.) 3
7.) 3
8.) 4
9.) 3
10.) 3
11.) 4