RBI GK Questions with Answers for the students preparing for exams like IBPS/RBI/SSC/UPSC and other competitive bank exams.
1. In which year was the RBI Act passed?
A) 1932
B) 1934
C) 1949
D) 1951
Answer: B) 1934
Explanation: The Reserve Bank of India Act, which led to the establishment of the Reserve Bank of India, was passed in the year 1934. This act provides the statutory basis for the functioning of the RBI.
2. In which year did RBI come into existence or get established?
A) 1934
B) 1935
C) 1947
D) 1950
Answer: B) 1935
Explanation: The Reserve Bank of India commenced operations on April 1, 1935, as per the provisions of the Reserve Bank of India Act, 1934.
3. In which year was RBI nationalized or became a state-owned institution?
A) 1947
B) 1948
C) 1949
D) 1951
Answer: C) 1949
Explanation: The Reserve Bank of India was nationalized on January 1, 1949, through the Reserve Bank (Transfer to Public Ownership) Act, 1948.
4. How many members are there in the Central Board of Directors of RBI?
A) 10
B) 14
C) 21
D) 25
Answer: D) 25
Explanation: The RBI’s Central Board of Directors has 25 members (as of June 2024).
5. The Head Office of RBI is located in?
A) New Delhi
B) Mumbai
C) Kolkata
D) Chennai
Answer: B) Mumbai
Explanation: The Reserve Bank of India’s central office is located in Mumbai, Maharashtra.
6. How many local boards are there in the organizational structure of RBI?
A) 2
B) 4
C) 6
D) 8
Answer: B) 4
Explanation: There are four local boards of the RBI located in Mumbai, Kolkata, Chennai, and New Delhi.
7. Who appoints the governor and the deputy governors of RBI?
A) President of India
B) Prime Minister of India
C) Finance Minister of India
D) Central Government
Answer: D) Central Government
Explanation: The Governor and Deputy Governors of the Reserve Bank of India are appointed by the Central Government of India.
8. Who was the first foreign governor of RBI?
A) James Taylor
B) Osborne Smith
C) Benegal Rama Rau
D) John Mathai
Answer: B) Osborne Smith
Explanation: Sir Osborne Smith was the first Governor of the Reserve Bank of India, serving from 1935 to 1937.
9. Who was the first Indian governor of RBI?
A) C.D. Deshmukh
B) L.K. Jha
C) Bimal Jalan
D) Manmohan Singh
Answer: A) C.D. Deshmukh
Explanation: C.D. Deshmukh was the first Indian Governor of the Reserve Bank of India, serving from 1943 to 1949.
10. Who is the present governor of RBI?
A) Raghuram Rajan
B) Urjit Patel
C) Shaktikanta Das
D) D. Subbarao
Answer: C) Shaktikanta Das
Explanation: As of the latest information available till June 2024, Shaktikanta Das is the current Governor of the Reserve Bank of India, having assumed office in December 2018.
RBI MCQ Questions and Answers
11. The term of appointment of RBI governor is?
A) 2 years
B) 3 years
C) 4 years
D) 5 years
Answer: B) 3 years
Explanation: The term of appointment for the RBI Governor is typically three years, which can be extended by the government.
12. Who is the chairman of the central board?
A) Finance Minister of India
B) Governor of RBI
C) President of India
D) Deputy Governor of RBI
Answer: B) Governor of RBI
Explanation: The Governor of the Reserve Bank of India serves as the Chairman of the Central Board of Directors.
13. Which department of the RBI is responsible for issuing currency notes?
A) Banking Regulation Department
B) Currency Management Department
C) Issue Department
D) Economic Policy Department
Answer: C) Issue Department
Explanation: The Issue Department of the Reserve Bank of India is responsible for the issuance and management of currency notes.
14. In which year did the RBI adopt the minimum reserves system of note issue?
A) 1956
B) 1949
C) 1962
D) 1971
Answer: A) 1956
Explanation: The Reserve Bank of India adopted the Minimum Reserve System for the issuance of currency notes in 1956, requiring it to maintain a minimum reserve of gold and foreign exchange.
15. One rupee coins and notes are issued in India by __________.
A) Reserve Bank of India
B) Ministry of Finance
C) State Bank of India
D) Securities and Exchange Board of India
Answer: B) Ministry of Finance
Explanation: In India, one rupee coins and notes are issued by the Ministry of Finance, while other currency denominations are issued by the Reserve Bank of India.
16. What are the principles of issuing notes?
A) Proportional Reserve System
B) Minimum Reserve System
C) Uniformity, Elasticity, and Security
D) Full Reserve System
Answer: C) Uniformity, Elasticity, and Security
Explanation: The principles of issuing notes include uniformity (ensuring that all notes are consistent in design and denomination), elasticity (the ability to adjust the supply of currency as needed), and security (incorporating features to prevent counterfeiting and ensure the integrity of the currency). These principles ensure that the currency remains trustworthy, adaptable to economic conditions, and difficult to counterfeit.
17. The RBI was originally set up as a __________.
A) Government-owned institution
B) Cooperative bank
C) Private bank
D) Regional rural bank
Answer: C) Private bank
Explanation: The Reserve Bank of India was originally established as a privately owned bank in 1935 but was nationalized in 1949.
18. Which principle is followed to constitute various departments in RBI?
A) Regional principle
B) Hierarchical principle
C) Functional specialization principle
D) Territorial principle
Answer: C) Functional specialization principle
Explanation: The Functional Specialization Principle in the Reserve Bank of India (RBI) means organizing different departments based on their specific roles or areas of expertise. For example, there are separate departments for banking regulation, managing currency, making monetary policies, overseeing financial markets, and conducting economic research. This setup ensures that each department focuses on its specialized tasks, leading to efficient management and effective handling of various aspects of central banking.
19. Credit authorization scheme was introduced by RBI in ___________.
A) 1970
B) 1962
C) 1965
D) 1985
Answer: C) 1965
Explanation: The Credit Authorization Scheme (CAS) was started by the Reserve Bank of India (RBI) in 1965 and ended in 1989. It required banks to get RBI approval before giving loans of Rs. 1 crore or more to a single borrower. The limit was later raised to Rs. 6 crores by 1986. This was to control lending and promote responsible borrowing. The scheme aimed to ensure that banks were cautious while lending large amounts and to prevent excessive risk-taking in the banking sector.
20. Repo rate is the rate at which RBI lends to scheduled commercial banks for ________.
A) Long-term loans
B) Short-term loans
C) Housing loans
D) Agricultural loans
Answer: B) Short-term loans
Explanation: The Repo rate is the rate at which the Reserve Bank of India lends short-term funds to scheduled commercial banks to maintain liquidity in the banking system.
Reserve Bank of India GK Questions and Answers
21. In order to inject money into the economy, what does RBI do?
A) Decrease in repo rate
B) Purchase of securities in open market.
C) Reduction in CRR and SLR
D) All of the above.
Answer: D) All of the above.
Explanation:
Decrease in repo rate: When the RBI decreases the repo rate, it becomes cheaper for banks to borrow money from the RBI. This encourages banks to borrow more and lend more to businesses and individuals, thereby increasing the money supply in the economy.
Purchase of securities in open market: When the RBI purchases securities in the open market, it injects money into the economy by paying for those securities. This increases the reserves of commercial banks, leading to more lending and higher money supply.
Reduction in CRR and SLR: When the RBI reduces the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) requirements for banks, it frees up more funds for banks to lend. Banks can then use these freed-up funds to extend more loans, thereby injecting money into the economy.
22. The Bill of discounting for the first time was introduced by RBI in the year?
A) 1952
B) 1947
C) 1960
D) 1958
Answer: A) 1952
Explanation: The RBI introduced the Bill of Discounting scheme for the first time in 1952 to provide liquidity to commercial banks by rediscounting their bills of exchange.
23. The symbol of the RBI features:
A) A tiger
B) A palm tree
C) Both a tiger and a palm tree
D) An elephant
Answer: C) Both a tiger and a palm tree
Explanation: The RBI emblem features a palm tree and a tiger.
24. What is the primary function of the RBI?
A) Printing currency notes only
B) Regulating commercial banks only
C) Managing foreign exchange reserves only
D) All of the above
Answer: D) All of the above
Explanation: RBI is responsible for issuing currency, regulating commercial banks, managing foreign exchange reserves, and formulating monetary policy.
25. What is the minimum paid-up capital requirement for a new bank in India as per RBI regulations?
A) ₹ 1 crore
C) ₹ 500 crore
C) ₹ 1000 crore
D) ₹ 5000 crore
Answer: C) ₹ 500 crore
Explanation: As of June 2024, the minimum paid-up capital requirement for a new bank is ₹ 500 crore.
26. What is the name of the digital currency launched by the RBI (as of June 2024)?
A) e-Rupee
B) DigiCash
C) Paytm
D) PhonePe
Answer: A) e-Rupee
Explanation: RBI is currently exploring the launch of a digital rupee (e-Rupee).
27. On whose recommendations was the RBI established?
A) Chamberlain Commission
B) Hilton Young Commission
C) Keynes Commission
D) None of the above
Answer: B) Hilton Young Commission
Explanation: The RBI was established based on the recommendations of the Hilton Young Commission.
28. Which of the following is NOT a tool used by RBI to control the money supply?
A) Open Market Operations (OMO)
B) Repo Rate
C) Cash Reserve Ratio (CRR)
D) Statutory Liquidity Ratio (SLR)
Answer: D) Statutory Liquidity Ratio (SLR)
Explanation: SLR is the minimum percentage of deposits that banks need to maintain in government securities. It doesn’t directly affect the money supply in circulation.
29. What is the main objective of the Monetary Policy Committee (MPC) of the RBI?
A) Regulating commercial banks
B) Setting interest rates
C) Managing foreign exchange reserves
D) Printing currency notes
Answer: B) Setting interest rates
Explanation: The MPC is responsible for formulating monetary policy, which includes setting key interest rates like repo rate.
30. What is the name of the RBI’s online platform for filing complaints against banks?
A) SHAKTI
B) Sachet
C) CMS (Complaint Management System)
D) PRICOL (Prudential Regulation and Oversight Committee)
Answer: B) Sachet
Explanation: Sachet (Scheme for Complaint Handling) is the RBI’s online portal for lodging complaints against banks and other financial entities.
Reserve Bank of India GK Questions with Answers
31. What is the principle followed by RBI to determine the amount of currency notes to be printed?
A) Purely based on government requirement
B) A combination of the Currency Principle and Banking Principle
C) Solely based on gold reserves
D) Determined by the printing capacity of the RBI
Answer: B) A combination of the Currency Principle and Banking Principle
Explanation: RBI uses a combination of the Currency Principle (backing notes with reserves) and the Banking Principle (meeting credit needs) to manage the money supply.
32. What is the function of the Cash Reserve Ratio (CRR)?
A) To determine bank lending rates
B) To maintain liquidity in the banking system
C) To control inflation
D) To generate revenue for the government
Answer: C) To control inflation
Explanation: CRR is the portion of deposits that banks must hold with RBI, acting as a tool to control inflation by influencing the money supply.
33. Which of the following is NOT a function of the RBI?
A) Issuing government bonds
B) Managing foreign exchange reserves
C) Acting as the banker’s bank
D) Supervising commercial banks
Answer: B) Managing foreign exchange reserves
Explanation: The government, not the RBI, issues bonds. RBI manages foreign exchange reserves but doesn’t directly issue them.
34. What is the minimum denomination of currency note printed by the RBI (as of June 2024)?
A) ₹ 1
B) ₹ 5
C) ₹ 10
D) ₹ 20
Answer: A) ₹ 1
Explanation: The RBI currently prints currency notes starting from ₹ 1 denomination.
35. What is the term for the short-term borrowings by banks from RBI?
A) Cash Credit Limit (CCL)
B) Repo Rate
C) Bank Rate (Obsolete)
D) Statutory Liquidity Ratio (SLR)
Answer: B) Repo Rate
Explanation: Repo rate is the rate at which RBI lends short-term funds to banks.
36. Who signs on the front side of a rupee note?
A) Governor of RBI
B) Finance Minister
C) Prime Minister
D) Chief Economic Advisor
Answer: A) Governor of RBI
Explanation: The Governor of RBI’s signature appears on the front side of a rupee note.
37. What is the financial year of the RBI?
A) April 1 – March 31
B) January 1 – December 31
C) May 1 – April 30
D) July 1 – June 30
Answer: A) April 1 – March 31
Explanation: The RBI’s financial year follows the same as the Government of India, running from April 1 to March 31.
38. What is the primary objective of the Financial Stability Report published by the RBI?
A) To analyze government finances
B) To assess the stability of the Indian financial system
C) To report on economic growth
D) To review government policies
Answer: B) To assess the stability of the Indian financial system
Explanation: The Financial Stability Report by RBI evaluates the risks and vulnerabilities within the Indian financial system.
39. Which type of bank account does NOT come under the purview of deposit insurance by the Deposit Insurance and Credit Guarantee Corporation (DICGC), a subsidiary of RBI?
A) Savings account
B) Current account
D) Fixed deposit (up to a specific limit)
D) Demat account
Answer: D) Demat account
Explanation: Demat accounts hold shares and securities electronically, not cash deposits. DICGC insures cash deposits in eligible accounts, not investments like stocks.
40. Who was the first woman deputy governor of RBI?
A) Shyamala Gopinath
B) Usha Thorat
C) K.J. Udeshi
D) R. Gandhi
Answer: C) K.J. Udeshi
Explanation: K.J. Udeshi was the first woman to be appointed as the Deputy Governor of the Reserve Bank of India.
RBI GK Questions and Answers
41. Which year did RBI launch the first monetary policy framework?
A) 1991
B) 1997
C) 2002
D) 2015
Answer: D) 2015
Explanation: The RBI launched its first monetary policy framework in 2015, aimed at setting a formal inflation target and ensuring price stability.
42. Which RBI scheme was launched to promote financial inclusion by providing basic banking facilities to the poor?
A) Pradhan Mantri Jan Dhan Yojana
B) Swabhimaan Campaign
C) Financial Inclusion Plan
D) Basic Savings Bank Deposit Account (BSBDA)
Answer: A) Pradhan Mantri Jan Dhan Yojana
Explanation: The Pradhan Mantri Jan Dhan Yojana (PMJDY) is the scheme launched by the Reserve Bank of India (RBI) to promote financial inclusion by providing basic banking facilities to the poor. This scheme was initiated to ensure access to financial services such as basic savings and deposit accounts, remittance, credit, insurance, and pension in an affordable manner.
43. In which year did RBI start operations of the National Electronic Funds Transfer (NEFT) system?
A) 2001
B) 2005
C) 2008
D) 2010
Answer: B) 2005
Explanation: The Reserve Bank of India (RBI) started the operations of the National Electronic Funds Transfer (NEFT) system in 2005. NEFT is a nationwide payment system facilitating one-to-one funds transfer from any bank branch to any other bank branch in India.
