Great!
I'll go through your list of MCQs, remove duplicates/similar questions, and organize the
final cleaned-up list serially by topic. Each question will be numbered, grouped into sections,
and include the ✅ correct answer.
✅ 1. Evolution of Banking in India
1. Which was the first bank established in India?
A) Bank of Bombay
B) Bank of Hindustan ✅
C) Imperial Bank
D) Allahabad Bank
2. Which bank is considered the first joint stock bank in India still in existence?
A) SBI
B) Allahabad Bank ✅
C) ICICI Bank
D) Punjab National Bank
3. The Imperial Bank of India was renamed as:
A) Central Bank
B) State Bank of India ✅
C) Bank of Baroda
D) RBI
4. Which bank was known as the Imperial Bank of India before being nationalised?
A) Allahabad Bank
B) SBI ✅
C) PNB
D) HDFC
5. The first bank purely managed by Indians was:
A) Allahabad Bank
B) Imperial Bank of India
C) Central Bank of India ✅
D) Punjab National Bank
✅ 2. Indian Financial System & Markets
6. Which market deals with short-term instruments?
A) Capital Market
B) Money Market ✅
C) Forex Market
D) Commodity Market
7. Which financial instrument has a maturity of less than one year?
A) Equity shares
B) Mutual funds
C) Treasury bills ✅
D) Debentures
8. Which of the following is a primary security?
A) Shares bought in secondary market
B) IPO ✅
C) Debentures traded on BSE
D) None of the above
9. Which of the following is NOT a banking institution?
A) Public Sector Bank
B) Cooperative Bank
C) Insurance Company ✅
D) Regional Rural Bank
✅ 3. RBI & Monetary Policy
10. When was the Reserve Bank of India (RBI) established?
A) 1934
B) 1935 ✅
C) 1949
D) 1955
11. What is the primary objective of RBI’s monetary policy?
A) Promoting full employment
B) Ensuring exchange rate stability
C) Maintaining price stability while keeping growth objectives in mind ✅
D) Promoting economic growth
12. Which of the following is a quantitative tool of RBI's monetary policy?
A) Moral Suasion
B) Credit Rationing
C) Cash Reserve Ratio (CRR) ✅
D) Direct Action
13. Which rate is the interest rate at which RBI lends to commercial banks?
A) Reverse Repo Rate
B) Repo Rate ✅
C) Bank Rate
D) MSF
14. Which body is responsible for issuing currency in India?
A) SBI
B) SEBI
C) RBI ✅
D) Ministry of Finance
15. Which of the following is a qualitative tool of monetary policy?
A) CRR
B) Repo Rate
C) Moral Suasion ✅
D) SLR
16. RBI supervises which of the following?
A) Commercial Banks
B) NBFCs
C) Primary Dealers
D) All of the above ✅
17. RBI acts as the "lender of last resort" to:
A) All financial institutions
B) Solvent banks during temporary liquidity problems ✅
C) The government
D) Non-scheduled banks
18. What is the RBI’s tool to control inflation?
A) Repo Rate ✅
B) SLR
C) CRR
✅ 4. Regulatory Bodies
19. Which organisation regulates the stock market in India?
A) IRDAI
B) SEBI ✅
C) RBI
D) PFRDA
20. Who regulates the National Pension Scheme?
A) SEBI
B) IRDAI
C) PFRDA ✅
D) RBI
21. Which of the following regulates the insurance sector?
A) RBI
B) PFRDA
C) IRDAI ✅
D) SEBI
22. Which of the following is a Self-Regulatory Organisation (SRO)?
A) AMFI ✅
B) IRDAI
C) PFRDA
D) RBI
23. Which of the following is NOT a function of SEBI?
A) Investor protection
B) Regulate insurance ✅
C) Prevent insider trading
✅ 5. Banking Operations & Responsibilities
24. What does CASA stand for?
A) Current Account, Savings Account ✅
B) Credit And Savings Account
C) Cash And Securities Account
D) None
25. What is a demand deposit?
A) Term Deposit
B) Recurring Deposit
C) Demand Deposit ✅
D) Fixed Deposit
26. What is Net Interest Income (NII)?
A) Fee income from insurance
B) Interest from deposits
C) Difference between interest earned and interest paid ✅
D) None
27. Which of the following is an example of cross-selling?
A) Giving a car loan to an existing home loan customer ✅
B) Giving cash deposit service
C) Providing locker facility
D) Opening an FD
28. What is the primary responsibility of a bank as a custodian of public money?
A) Lending deposits to make a profit
B) Safeguarding the public's money ✅
C) Creating credit
D) Financial intermediation
29. As per DICGC, what is the maximum insurance amount for each depositor in a bank?
A) ₹1,00,000
B) ₹2,00,000
C) ₹5,00,000 ✅
D) No limit
30. Which scheme is an example of a financial inclusion initiative?
A) PM Jan Dhan Yojana ✅
B) SARFAESI Act
C) RBI Ombudsman Scheme
D) Banking Regulation Act
✅ 6. Laws & Acts
31. SARFAESI Act applies to NPAs above:
A) ₹50,000
B) ₹1 lakh ✅
C) ₹5 lakh
32. Under which section does RBI control advances?
A) Section 17
B) Section 21 ✅
C) Section 24
D) Section 45
33. Which section deals with SLR requirements in the BR Act?
A) Section 24 ✅
B) Section 5(a)
C) Section 17
D) Section 42
34. RBI has the right to issue notes under which section?
A) Section 17
B) Section 22 ✅
C) Section 24
D) Section 45
35. Which section of the BR Act defines banking?
A) Section 6
B) Section 5(b) ✅
C) Section 8
D) Section 22
6. Social Responsibility & Financial Inclusion
Which is a financial inclusion initiative by GoI?
A) SARFAESI Act
B) Banking Regulation Act
C) PMJDY ✅
D) RBI’s Monetary Policy
A CSR initiative in banking aimed at financial learning is:
A) Opening branches
B) Cross-selling
C) Financial Literacy Counselling Centres (FLCCs) ✅
D) CASA promotions
🔹 8. Negotiable Instruments Act
Which of these is NOT a negotiable instrument?
A) Promissory Note
B) Cheque
C) Bill of Exchange
D) Banknote ✅
A cheque having bank’s name mentioned specifically is called:
A) General Crossing
B) Special Crossing ✅
C) Not Negotiable
D) Stale Cheque
Section 138 of NI Act deals with:
A) Cheque Kiting
B) Stop Payment
C) Dishonour of cheque ✅
D) Crossed Cheques
Let me know if you want these in a PDF format, or if you'd like me to prepare mock test
papers or flashcards based on these!
