Banking MCQ Questions with Answers for the students preparing for exams like IBPS/RBI/SSC/UPSC and other competitive bank exams.
1. Who was appointed as the chair of Business 20 (B20)?
A) Ratan Tata
B) Mukesh Ambani
C) N. Chandrasekaran
D) Gautam Adani
Answer: C) N. Chandrasekaran
Explanation: N. Chandrasekaran, the chairman of Tata Sons, was appointed as the chair of Business 20 (B20) which is a part of the G20 dialogue forum with the global business community.
2. Which card has higher credit risk to the bank?
A) Debit card
B) Credit card
C) Prepaid card
D) Gift card
Answer: B) Credit card
Explanation: Credit cards have a higher credit risk to the bank because they allow cardholders to borrow funds up to a certain limit. The bank faces the risk of non-repayment by the cardholder.
3. Which public sector bank has the highest number of foreign branches?
A) State Bank of India
B) Bank of Baroda
C) Punjab National Bank
D) Canara Bank
Answer: B) Bank of Baroda
Explanation: Bank of Baroda has the highest number of foreign branches among Indian public sector banks, with a significant international presence.
4. Where are the headquarters of the Asian Development Bank (ADB)?
A) Tokyo, Japan
B) Beijing, China
C) Manila, Philippines
D) New Delhi, India
Answer: C) Manila, Philippines
Explanation: The Asian Development Bank (ADB) is headquartered in Manila, Philippines. It aims to promote social and economic development in Asia.
5. What does ‘M’ in MDR stands for?
A) Money
B) Merchant
C) Minimum
D) Monthly
Answer: B) Merchant
Explanation: MDR stands for Merchant Discount Rate, which is a fee charged to merchants by banks for providing debit and credit card services.
6. What is the meaning of NDTL?
A) Net Demand and Time Liabilities
B) Net Deposits and Term Liabilities
C) Net Discount and Trade Liabilities
D) Net Domestic and Trade Liabilities
Answer: A) Net Demand and Time Liabilities
Explanation: NDTL stands for Net Demand and Time Liabilities, which refers to the total demand and time liabilities (deposits) held by a bank, used to calculate the reserve requirements.
7. The consumer confidence survey is launched by which organization?
A) National Sample Survey Office
B) Reserve Bank of India
C) Ministry of Finance
D) NITI Aayog
Answer: B) Reserve Bank of India
Explanation: The Reserve Bank of India (RBI) conducts the Consumer Confidence Survey to assess consumer sentiment and expectations.
8. What is the currency of Japan?
A) Yuan
B) Yen
C) Won
D) Peso
Answer: B) Yen
Explanation: The currency of Japan is the Yen, symbolized as ¥ and is one of the most traded currencies in the world.
9. The money a commercial bank needs to preserve in the form of cash, or gold or Bonds before providing credit to their own customers is known as____
A) Cash Reserve Ratio
B) Statutory Liquidity Ratio
C) Bank Rate
D) Reverse Repo Rate
Answer: B) Statutory Liquidity Ratio
Explanation: Statutory Liquidity Ratio (SLR) is the percentage of a bank’s net demand and time liabilities that must be maintained in the form of cash, gold, or government-approved securities before offering credit.
10. What is the primary function of DICGC?
A) Regulating microfinance institutions
B) Insuring deposits of all banks
C) Managing government debt
D) Issuing currency notes
Answer: B) Insuring deposits of all banks
Explanation: The primary function of the Deposit Insurance and Credit Guarantee Corporation (DICGC) is to protect the interests of small depositors by insuring their deposits up to a specified limit in case a bank fails. This insurance provides a safety net for depositors, ensuring that they do not lose their savings even if the bank faces insolvency.
Banking MCQ Questions and Answers
11. Who was the Chief Guest of 21st World Congress of Accountants (WCOA) in November 2022?
A) Narendra Modi
B) Shri Om Birla
C) Rishi Sunak
D) Amit Shah
Answer: B) Shri Om Birla
Explanation: The 21st World Congress of Accountants (WCOA) in November 2022 had multiple distinguished guests rather than a single chief guest.
Shri Om Birla, the Speaker of Lok Sabha, India, inaugurated the event.
Smt. Nirmala Sitharaman, the Minister of Corporate Affairs & Finance of India, delivered a keynote address.
12. RBI issued ‘Acquisition and Holding of Shares or Voting Rights in Banking Companies Direction, 2023’ which allowed promoter to hold _ from the current 15%?
A) 20%
B) 26%
C) 30%
D) 35%
Answer: B) 26%
Explanation: The RBI’s new direction allows a promoter to hold up to 26% of shares or voting rights in banking companies, up from the previous limit of 15%.
13. Who chaired the 8 member committee on ‘One Nation, One Election’?
A) Amit Shah
B) Narendra Modi
C) Ram Nath Kovind
D) Arun Jaitley
Answer: C) Ram Nath Kovind
Explanation: The former President of India, Ram Nath Kovind, chaired the committee on ‘One Nation, One Election’ to explore the feasibility of simultaneous elections in the country.
14. Which company has introduced the Pincode on India’s Open Network for Digital Commerce (ONDC) platform?
A) Amazon Pay
B) GPay
C) PayTM
D) PhonePe
Answer: D) PhonePe
Explanation: PhonePe introduced the Pincode app on the ONDC platform to enable consumers to discover and buy products from a variety of sellers in a seamless manner.
15. Indian Origin Scientist Joyeeta Gupta honoured with NWO Spinoza Prize 2023 for which field?
A) Physics
B) Chemistry
C) Environmental Science
D) Climate Change
Answer: D) Climate Change
Explanation: Joyeeta Gupta, an Indian-origin scientist, was awarded the NWO Spinoza Prize 2023 for her significant contributions to the field of Climate Change. Her work focuses on understanding and addressing the impacts of climate change, and she has been recognized for her influential research and advocacy in this critical area.
16. Which country uses the Iron Dome defense system?
A) USA
B) Israel
C) Russia
D) China
Answer: B) Israel
Explanation: The Iron Dome is an advanced air defense system developed by Israel to intercept and destroy short-range rockets and artillery shells.
17. Who is the regulator of Public General Insurance companies?
A) Reserve Bank of India
B) Ministry of Finance
C) Insurance Regulatory and Development Authority of India
D) Securities and Exchange Board of India
Answer: C) Insurance Regulatory and Development Authority of India
Explanation: The Insurance Regulatory and Development Authority of India (IRDAI) is the regulator of public general insurance companies in India.
18. Which bank launched India’s First Numberless Credit Card?
A) HDFC Bank
B) ICICI Bank
C) IDFC FIRST Bank
D) Axis Bank
Answer: D) Axis Bank
Explanation: Axis Bank launched India’s first numberless credit card, which enhances security by not displaying the card number, expiry date, or CVV on the physical card.
19. At the time of periodical review, which of the following rates are reviewed by the Reserve Bank of India?
A) Repo Rate
B) Bank Rate
C) Savings Bank Rate
D) All of the above
Answer: D) All of the above
Explanation: During its periodical reviews, the Reserve Bank of India (RBI) assesses and adjusts various key rates as part of its monetary policy framework. This includes the Repo Rate, which is the rate at which the RBI lends to commercial banks; the Bank Rate, which is the rate charged by the RBI for long-term loans; and the Savings Bank Rate, which determines the interest rate on savings deposits. These rates are crucial for controlling inflation, managing liquidity, and guiding the overall economic policy.
20. Who was the first Indian Governor of RBI?
A) C. D. Deshmukh
B) R. K. Shanmukham Chetty
C) S. Mukherjee
D) I. G. Patel
Answer: A) C. D. Deshmukh
Explanation: C. D. Deshmukh was the first Indian to serve as the Governor of the Reserve Bank of India, holding office from 1943 to 1949.
Banking GK Questions and Answers
21. Which is the biggest public bank in India?
A) Punjab National Bank
B) HDFC Bank
C) State Bank of India
D) ICICI Bank
Answer: C) State Bank of India
Explanation: State Bank of India (SBI) is the largest public sector bank in India by assets, revenue, and customer base. It is also one of the largest employers in the banking sector.
22. What was the old name of State Bank Of India?
A) Bank of Madras
B) Bank of Bombay
C) Imperial Bank of India
D) Bank of Calcutta
Answer: C) Imperial Bank of India
Explanation: The State Bank of India was formerly known as the Imperial Bank of India before it was renamed in 1955 following an act passed by the Indian Parliament.
23. In which year was Imperial Bank renamed as State Bank of India?
A) 1950
B) 1952
C) 1955
D) 1957
Answer: C) 1955
Explanation: The Imperial Bank of India was renamed the State Bank of India on July 1, 1955, after the State Bank of India Act was passed by the Parliament of India.
24. In which year was the Imperial Bank formed?
A) 1806
B) 1843
C) 1921
D) 1947
Answer: C) 1921
Explanation: The Imperial Bank of India was established in 1921 by merging three presidency banks: the Bank of Calcutta, the Bank of Bombay, and the Bank of Madras.
25. Which bank has the most branches in India?
A) Punjab National Bank
B) State Bank of India
C) Bank of Baroda
D) Canara Bank
Answer: B) State Bank of India
Explanation: The State Bank of India has the most extensive branch network in India, with thousands of branches spread across the country, catering to a vast customer base.
26. Which committee recommended the formation of the State Bank of India?
A) Narasimham Committee
B) Hilton Young Commission
C) Gorewala Committee
D) All India Rural Credit Survey Committee
Answer: C) Gorewala Committee
Explanation: The Gorewala Committee recommended the establishment of the State Bank of India. This committee was set up to examine and recommend measures to improve the banking system in India, leading to the formation of the State Bank of India in 1955.
27. Where is the headquarters of SBI?
A) New Delhi
B) Kolkata
C) Mumbai
D) Chennai
Answer: C) Mumbai
Explanation: The headquarters of the State Bank of India is located in Mumbai, Maharashtra. Mumbai is the financial capital of India, and many major banks and financial institutions are headquartered there.
28. Which is the biggest commercial bank in India?
A) HDFC Bank
B) ICICI Bank
C) Punjab National Bank
D) State Bank of India
Answer: D) State Bank of India
Explanation: The State Bank of India is the largest commercial bank in India in terms of assets, deposits, and customer base. It operates a wide range of banking services and products across the country and internationally.
29. What is the term for loans provided to study abroad?
A) Domestic loans
B) Personal loans
C) Education loans
D) Commercial loans
Answer: C) Education loans
Explanation: Education loans are specifically designed to cover expenses related to studying abroad.
30. The American Express Company, also known as Amex, is headquartered at______
A) New York City, USA
B) Chicago, USA
C) Los Angeles, USA
D) Boston, USA
Answer: A) New York City, USA
Explanation: American Express has its headquarters in New York City.
Banking GK Questions With Answers
31. What is the premium amount of Pradhan Mantri Suraksha Bima Yojana?
A) ₹5 per annum
B) ₹12 per annum
C) ₹100 per annum
D) ₹500 per annum
Answer: B) ₹12 per annum
Explanation: The Pradhan Mantri Suraksha Bima Yojana has a premium of ₹12 per annum.
32. A bond issued at a discount and repaid at its face value?
A) Convertible bond
B) Zero-coupon bond
C) Floating-rate bond
D) Fixed-rate bond
Answer: B) Zero-coupon bond
Explanation: Zero-coupon bonds are issued at a discount and repaid at face value.
33. The nationalization of major commercial banks took place in___
A) 1955
B) 1969
C) 1978
D) 1980
Answer: B) 1969
Explanation: The major commercial banks in India were nationalized in 1969.
34. The rate at which RBI gives short-term loan to commercial banks is called____
A) Bank Rate
B) Repo Rate
C) Reverse Repo Rate
D) Cash Reserve Ratio
Answer: B) Repo Rate
Explanation: The Repo Rate is the rate at which the RBI lends short-term money to commercial banks.
35. The export-import bank of India was set up in?
A) 1980
B) 1982
C) 1985
D) 1991
Answer: B) 1982
Explanation: The Export-Import Bank of India was established in January 1982.
36. The rate below which banks can not generally lend is called as______
A) Base Rate
B) Cash Reserve Ratio
C) Statutory Liquidity Ratio
D) Prime Lending Rate
Answer: A) Base Rate
Explanation: The Base Rate is the minimum rate below which banks are not permitted to lend.
37. Insurance cover for bank deposits in our country is provided by____
A) LIC
B) GIC
C) DICGC
D) IRDA
Answer: C) DICGC
Explanation: Deposit Insurance and Credit Guarantee Corporation (DICGC) provides insurance cover for bank deposits.
38. The term ‘Plastic money’ refers to___
A) Banknotes
B) Credit and Debit Cards
C) Cheques
D) Coins
Answer: B) Credit and Debit Cards
Explanation: Plastic money commonly refers to credit and debit cards.
39. What is the total number of languages on currency notes issued by the Reserve Bank of India?
A) 10
B) 12
C) 15
D) 17
Answer: D) 17
Explanation: Indian currency notes have 17 languages including English and Hindi.
40. FDI in private banking sector of India is allowed up to___
A) 26%
B) 49%
C) 74%
D) 100%
Answer: C) 74%
Explanation: Foreign Direct Investment (FDI) is allowed up to 74% in the private banking sector of India.
Banking MCQ Questions With Answers
41. In banking sector, Financial Resolution Authority deals with____
A) Resolution of distressed banks and financial institutions
B) Regulation of insurance companies
C) Supervision of stock exchanges
D) Monitoring of government expenditure
Answer: A) Resolution of distressed banks and financial institutions
Explanation: The Financial Resolution Authority deals with the resolution of distressed banks and financial institutions.
42. Where is the headquarters of European Bank for Reconstruction and Development located?
A) Paris
B) London
C) Berlin
D) Brussels
Answer: B) London
Explanation: The European Bank for Reconstruction and Development (EBRD) is headquartered in London.
43. Under a contractionary money policy the RBI raises the interest rates to __
A) Increase inflation
B) Decrease inflation
C) Increase employment
D) Decrease unemployment
Answer: B) Decrease inflation
Explanation: Under a contractionary monetary policy, the RBI raises interest rates to decrease inflation.
44. What is the minimum age required by a person to open a bank account in individual capacity?
A) 10 years
B) 12 years
C) 16 years
D) 18 years
Answer: A) 10 years
Explanation: In India, individuals as young as 10 years can open a bank account with certain restrictions.
45. What is the minimum amount of investment in a treasury bill issued by Reserve Bank of India on behalf of the government of India?
A) ₹10,000
B) ₹20,000
C) ₹25,000
D) ₹50,000
Answer: C) ₹25,000
Explanation: The minimum amount of investment in a treasury bill issued by the Reserve Bank of India is ₹25,000.
46. A cheque bearing the date earlier than the date of submission to the bank is known as __
A) Ante-dated cheque
B) Post-dated cheque
C) Stale cheque
D) Dishonored cheque
Answer: A) Ante-dated cheque
Explanation: An ante-dated cheque is one that is dated earlier than the date it is presented to the bank.
47. One-rupee currency note bears the signature of ___
A) Governor of RBI
B) Finance Secretary
C) President of India
D) Prime Minister of India
Answer: B) Finance Secretary
Explanation: One-rupee currency notes in India bear the signature of the Finance Secretary.
48. A bond issued at a price less than its face value and payable on its due date at its face value bearing no ROI (Rate of interest) is called ________
A) Zero-coupon bond
B) Floating-rate bond
C) Convertible bond
D) Perpetual bond
Answer: A) Zero-coupon bond
Explanation: A zero-coupon bond is issued at a discount and repaid at face value without periodic interest payments.
49. Recently, India has decided to introduce plastic currency notes. A number of other countries are already using plastic notes, but the pioneer in this field is ________
A) USA
B) UK
C) Australia
D) Canada
Answer: C) Australia
Explanation: Australia was the first country to introduce polymer (plastic) currency notes.
50. Who inaugurated the Bhartiya Mahila Bank?
A) Pranab Mukherjee
B) Narendra Modi
C) Manmohan Singh
D) P. Chidambaram
Answer: C) Manmohan Singh
Explanation: The Bhartiya Mahila Bank was inaugurated by then Prime Minister Manmohan Singh.
