I.B.

T
BANKING AWARENESS
RBI AND ITS FUNCTIONS
1. The section 19 of the Reserve Bank of India Act, 1934 states that the Reserve Bank of India has
been prohibited from?

A) making loans or advances. B) drawing or accepting bills payable otherwise the on demand
C) allowing interest on deposits or current accounts. D) all of the above. E) None of the above

2. In the Reserve Bank of India Act, 1934, it prohibits of making or issuing of a expressed to be
payable to bearer thereof?

A) cheque B) bill of exchange C) promissory note D) demand draft E) None of these

3. Rupee coins are the legal tender in India under the provisions of?

A) The Reserve Bank of India Act, 1934 B) Negotiable Instrument Act, 1881 C) Banking
Regulation Act, 1949 D) Indian Coinage Act, 1906 E) None of the above

4. In India, the system of decimal coinage was introduced on?

A) 15th August, 1947 B) 26th January, 1950 C) IstApril,1957 D) All of the above E) None of
the above

5. When was the Reserve Bank of India established?

a) 1 April 1947 b) 1 April 1950 c) 1 April 1935 d) 1 April 1961 e) 2nd march 1935

6. The Reserve Bank of India has issued a licence to which of the following to launch operations
in India?

(a) CITIC Ka Wah Bank Limited (b) China Construction Bank (c) Bank of China (d) Chong
Hing Bank Limited (e) Bank of East Asia Limited

7. Who is the first Chief Financial Officer of RBI?

(a) Urjit Patel (b) S. Mahalingam (c) Sudha Balakrishnan (d) V. Balakrishnan (e) None of
these

8. What is Cash Reserve Ratio?

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(a) Deposits of banks in government securities (b) Rate at which banks borrow funds from the
RBI (c) Deposits (as cash) which banks have to keep/maintain with the RBI (d) Rate at which
RBI borrows money from the banks (e) Rate at which RBI borrows money from the
government

9. In which form is the Cash Reserve Ratio (CRR) to be maintained with the Reserve Bank of
India ?

(a) Minimum cash reserves (b) Gold (c) Approved Securities (d) Both (a) and (b) (e) All of
the above

10. Which of the following is correct regarding the Statutory Liquidity ratio (SLR)?

(a) It restricts commercial bank's leverage in pumping more money into the economy

(b) It is maintained only in form of cash

(c) It controls liquidity in banking system

(d) It does not ensure the solvency of commercial banks

(e) None of these

11. Reverse Repo is a tool used by RBI to--------

(a) Increase liquidity of banking system (b) Absorb liquidity (c) Inject liquidity (d) Keep
the liquidity a one level (e) None of these

12. What is the percentage of RRB sponsor bank contribution?

(a) 75% (b) 35% (c) 45% (d) 50% (e) None of these

13. According to a recent Reserve Bank's Instructions on Banking matters. Banks cannot accept
interest free deposits other than in

(a) Demand deposit account (b) Term deposit account (c) Current account (d) Both (a)
and (b) (e) None of these

14. Which of the following is/are traditional type of open market operations used by the Reserve
Bank of India ?

(a) Outright purchase (b) CRR (Cash reserve ratio) (c) SLR (Statutory Liquidity Ratio)

(d) Repurchase agreement (REPO) (e) Both (a) and (d)

15. The deposit of cash under cash reserve ratio(CRR) requirement with the RBI is a

(a) Contributory requirement (b) Discretionary requirement (c) Mandatory requirement

(d) Voluntary requirement (e) None of these

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16. Which one of the following rates is not decided by RBI?

(a) Repo rate (b) Prime Lending Rate (c) Bank rate (d) Marginal Standing Facility (MSF)
rate (e) None of these

17. Which of the following is regulated by RBI?

(a) Management Investment of Foreign Direct (b) Overseeing the Currency Notes (c)
Presenting Budget (d) All of the Above (e) None of The Above

18. In case of matured SHGs, loans may be given beyond the limit of .....times the savings as per
the discretion of the bank.

(a) 3 Times (b) 4 Times (c) 5 Times (d) 6 Times (e) 7 Times

19. Aggregate Fund based and Non Fund based exposure of.... and above to CRILC maintained
by RBI?

(a) 1 Crore (b) 2 Crore (c) 5 Crore (d) 8 Crore (e) 10 Crore

20. Liability Index is related to---

(a) Marginal Rate (b) Discount Rate (c) Profit Rate (d) Fixed Rate (e) Floating Rate

21. The Reserve Bank has been conducting the OBICUS Survey of the manufacturing sector on
a quarterly basis since 2008.What is the abbreviation of I?

(a) Investment (b) Inventories (c) Inclusion (d) Information (e) Interrogation

22. RBI has recently issued guidelines for Digital Lending. Asset Performance Report includes

(a) Cost of funds, (b) Credit cost (c) Operating cost (d) Processing fee (e) All of the above

23. Daksha App of RBI is related to---

(a) Clear Grievances (b) Mornitor compliance requirements (c) Inspection Planning (d)
Examine Customer issues (e) Interlinking Projects

24. RBI has selected which companies to use Al and ML to improve regulatory supervision?

(a) McKinsey and Accenture (b) McKinsey and IBM (c) Deloitte and Accenture (d)
Deloitte and IBM (e) None of the above

25. The UDGAM portal to simplify the process for the public to locate their ------ in various
banks through a single platform.

(a) Fixed Deposits (b) Unclaimed Deposits (c) Current Deposits (d) Claim Deposits (e)
None of the above

26. . When did the Reserve Bank of India notify the draft regulations relating to the Credit
Information Companies (Regulation) Act, 2005?

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(a) April 5, 2006 (b) May 26, 2006 (c) June 29, 2007 2005 (d) September 30 (e) None of the
above

27. The RBI has given permit to resident individuals to make remittances to IFSCS that was
established in India under which scheme?

(a) Liberalized remittance scheme (LRS) (b) Money Transfer Service Scheme(MTSS) (c)
Rupee Drawing agreement(RDA) (d) Restructuring scheme by RBI (e) One Time Settlement
Scheme (OTSS)

28. The Central Board of Directors of the RBI (Reserve Bank of India) is appointed/nominated
for a period of-------- years.

(a) five (b) six (c) three (d) four (e) None of the above

29. Reserve Bank of India (RBI) Imposed Rs. 5.4 Crore Penalty On –

(a) Paytm Payments Bank (b) HDFC (c) ICICI (d) Flipkart (e) None of the above

30. RBI has expanded the range of products offered through RBI Retail Direct portal by
allowing retail investors to subscribe to Floating Rate Savings Bonds 2020 (Taxable)- FRSB 2020
(T). For how many years the bonds have been issued?-

(a) Two years (b) Three years (c) Seven years (d) Eight years (e) Ten years

31. The Reserve Bank of India (RBI) signed MoU with which country's central bank to promote
innovation in financial products?

(a) UAE (b) France (c) Sri Lanka (d) Bangladesh (e) Nepal

32. Rbi's green deposits are applicable to which banks?

(a) Commercial Banks (b) Central banks (c) Rural banks (d) National banks (e) None of
the above

33. Which division of the RBI is responsible for printing and minting Indian currency notes?

(a) National Payments Corporation of India (b) Deposit Insurance and Credit Guarantee
Corporation (c) Bharatiya Reserve Bank Note Mudran (d) Monetary Policy Committee (e)
None of the above

34. Name the unclaimed deposits portal released by the Reserve Bank of India (RBI)?

(a) UDGAM portal (b) RUPIYA (c) JANM (d) UDAY (e) ANTARDRISHTI

35. As of 2024, banks from how many countries were permitted by the Reserve Bank of India to
trade in rupees?

(a) 12 (b) 15 (c) 18 (d) 21 (e) None of the above

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ANSWER KEY

1. d 6. c 11. b 16. b 21. b 26. a 31. a