Banking & E-Commerce MCQs (01-100)

  1. The Reserve Bank of India was established in –
    A) 1935
    B) 1947
    C) 1950
    D) 1969
    Answer: A

  2. RBI was nationalized in –
    A) 1947
    B) 1949
    C) 1951
    D) 1969
    Answer: B

  3. Which of the following is the largest commercial bank in India?
    A) PNB
    B) ICICI Bank
    C) SBI
    D) HDFC Bank
    Answer: C

  4. CRR stands for –
    A) Cash Reserve Ratio
    B) Credit Rate Ratio
    C) Current Reserve Ratio
    D) Cash Return Ratio
    Answer: A

  5. SLR stands for –
    A) Statutory Liquidity Ratio
    B) Standard Lending Rate
    C) Simple Loan Ratio
    D) Secure Lending Ratio
    Answer: A

  6. What does NEFT stand for?
    A) National Electronic Funds Transfer
    B) National Exchange of Financial Transactions
    C) Net Electronic Fund Transfer
    D) None of these
    Answer: A

  7. RTGS minimum transfer amount is –
    A) ₹1 lakh
    B) ₹2 lakh
    C) ₹5 lakh
    D) ₹10 lakh
    Answer: B

  8. MICR code is used for –
    A) Credit card security
    B) Cheque processing
    C) Internet banking
    D) Loan approval
    Answer: B

  9. Which of the following is not a function of the RBI?
    A) Banker to the government
    B) Issuing currency
    C) Accepting deposits from the public
    D) Controlling monetary policy
    Answer: C

  10. The term “NPA” stands for –
    A) Non-Performing Asset
    B) New Payment Account
    C) National Payment Act
    D) Non-Productive Account
    Answer: A

  11. Priority sector lending does not include –
    A) Agriculture
    B) MSME
    C) Real estate
    D) Education
    Answer: C

  12. The headquarters of RBI is located in –
    A) New Delhi
    B) Mumbai
    C) Chennai
    D) Kolkata
    Answer: B

  13. Which organization regulates the stock market in India?
    A) SEBI
    B) NABARD
    C) RBI
    D) IRDAI
    Answer: A

  14. What is the full form of IFSC?
    A) Indian Financial System Code
    B) International Fund Security Code
    C) Indian Fund Settlement Code
    D) Interbank Financial Service Code
    Answer: A

  15. Scheduled banks are included in which schedule of RBI Act, 1934?
    A) First
    B) Second
    C) Third
    D) Fourth
    Answer: B

  16. The term “Repo Rate” refers to –
    A) Rate at which RBI lends to banks
    B) Rate at which banks lend to RBI
    C) Rate at which banks lend to customers
    D) None of these
    Answer: A

  17. “Reverse Repo Rate” is –
    A) Rate at which RBI borrows from banks
    B) Rate at which banks borrow from RBI
    C) Loan rate to priority sector
    D) None of these
    Answer: A

  18. The main objective of monetary policy is –
    A) Price stability
    B) Export promotion
    C) Rural development
    D) Employment generation
    Answer: A

  19. Which of the following is a development bank?
    A) NABARD
    B) SBI
    C) PNB
    D) ICICI
    Answer: A

  20. Which of the following banks is not a public sector bank?
    A) Canara Bank
    B) Axis Bank
    C) Bank of Baroda
    D) Punjab National Bank
    Answer: B

  21. KYC stands for –
    A) Know Your Customer
    B) Know Your Credit
    C) Keep Your Cash
    D) Know Your Currency
    Answer: A

  22. The Banking Ombudsman Scheme is managed by –
    A) RBI
    B) SEBI
    C) IRDAI
    D) Ministry of Finance
    Answer: A

  23. The term “Financial Inclusion” means –
    A) Providing banking services to all
    B) Reducing bank profits
    C) Closing unprofitable branches
    D) Investing abroad
    Answer: A

  24. Which bank launched the first ATM in India?
    A) HSBC
    B) SBI
    C) ICICI
    D) PNB
    Answer: A

  25. What does “MCLR” stand for?
    A) Marginal Cost of Funds based Lending Rate
    B) Minimum Credit Lending Ratio
    C) Maximum Cash Loan Rate
    D) None
    Answer: A

  26. Which of the following is not a type of bank account?
    A) Savings Account
    B) Current Account
    C) Fixed Deposit
    D) Credit Card
    Answer: D

  27. The term “Call Money” refers to –
    A) Short-term loan between banks
    B) Mobile banking
    C) ATM withdrawal
    D) Customer service calls
    Answer: A

  28. The headquarters of NABARD is located at –
    A) Mumbai
    B) New Delhi
    C) Chennai
    D) Hyderabad
    Answer: A

  29. The full form of NITI Aayog is –
    A) National Institution for Transforming India
    B) National Industrial Technology Institute
    C) National Institute for Training and Innovation
    D) None
    Answer: A

  30. Which of the following is the regulator of insurance companies?
    A) IRDAI
    B) SEBI
    C) RBI
    D) PFRDA
    Answer: A

  31. CASA stands for –
    A) Current Account Savings Account
    B) Central Account Savings Arrangement
    C) Cash Advance Savings Account
    D) None
    Answer: A

  32. What is the maximum limit for UPI transactions per day (as per current guidelines)?
    A) ₹1 lakh
    B) ₹2 lakh
    C) ₹5 lakh
    D) ₹10 lakh
    Answer: B

  33. The Basel norms are related to –
    A) Banking capital adequacy
    B) Stock market
    C) Insurance
    D) Taxation
    Answer: A

  34. PSL refers to –
    A) Priority Sector Lending
    B) Public Sector Loan
    C) Private Savings Limit
    D) Primary Savings Loan
    Answer: A

  35. The largest foreign bank in India is –
    A) Citi Bank
    B) HSBC
    C) Standard Chartered Bank
    D) Deutsche Bank
    Answer: C

  36. The function of NABARD includes –
    A) Agriculture & rural development finance
    B) Industrial finance
    C) Urban infrastructure
    D) Tax collection
    Answer: A

  37. The minimum CRR prescribed by RBI is –
    A) 3%
    B) 4%
    C) 5%
    D) 6%
    Answer: B

  38. Which of the following is not a payment bank?
    A) Paytm Payments Bank
    B) India Post Payments Bank
    C) Airtel Payments Bank
    D) Axis Bank
    Answer: D

  39. The full form of BC in banking is –
    A) Business Correspondent
    B) Banking Channel
    C) Bank Clerk
    D) Business Centre
    Answer: A

  40. Which of the following is not an RBI subsidiary?
    A) BRBNMPL
    B) NHB
    C) DICGC
    D) SEBI
    Answer: D

  41. Who is the banker to the government of India?
    A) RBI
    B) SBI
    C) Finance Ministry
    D) NABARD
    Answer: A

  42. The headquarters of SIDBI is in –
    A) Lucknow
    B) Mumbai
    C) New Delhi
    D) Hyderabad
    Answer: A

  43. What is the validity period of a cheque in India?
    A) 3 months
    B) 6 months
    C) 12 months
    D) 1 month
    Answer: A

  44. Which of these is not a money market instrument?
    A) Treasury Bill
    B) Certificate of Deposit
    C) Commercial Paper
    D) Equity Share
    Answer: D

  45. Who issues “Treasury Bills”?
    A) RBI on behalf of the Government of India
    B) Commercial banks
    C) SEBI
    D) IRDAI
    Answer: A

  46. “White Label ATMs” are owned by –
    A) Non-bank entities
    B) RBI
    C) Public sector banks
    D) Private banks
    Answer: A

  47. The term “Hot Money” means –
    A) Money that moves quickly between countries
    B) Cash held in hand
    C) Counterfeit money
    D) None
    Answer: A

  48. The head office of World Bank is located in –
    A) Washington D.C.
    B) London
    C) New York
    D) Geneva
    Answer: A

  49. Which of the following is an example of a microfinance institution?
    A) Bandhan Bank
    B) SBI
    C) HDFC
    D) ICICI
    Answer: A

  50. RBI functions under which Act?
    A) RBI Act, 1934
    B) Banking Regulation Act, 1949
    C) Companies Act, 1956
    D) Finance Act, 1999
    Answer: A

  1. The headquarters of RBI were initially located at –
    A) Kolkata
    B) Mumbai
    C) Delhi
    D) Chennai
    Answer: A

  2. Which bank is known as the banker to banks?
    A) RBI
    B) SBI
    C) PNB
    D) NABARD
    Answer: A

  3. The full form of ECS is –
    A) Electronic Clearing Service
    B) Electronic Credit System
    C) Easy Credit System
    D) Electronic Cash Service
    Answer: A

  4. The maximum deposit limit in a Payment Bank account is –
    A) ₹1 lakh
    B) ₹2 lakh
    C) ₹3 lakh
    D) ₹5 lakh
    Answer: B

  5. What is the main function of a commercial bank?
    A) Accepting deposits and lending loans
    B) Issuing currency
    C) Controlling inflation
    D) Implementing fiscal policy
    Answer: A

  6. In banking, CASA ratio indicates –
    A) Share of low-cost deposits
    B) Loan-to-deposit ratio
    C) Capital adequacy ratio
    D) Investment ratio
    Answer: A

  7. The RBI issues currency notes under –
    A) Minimum Reserve System
    B) Maximum Reserve System
    C) Proportional Reserve System
    D) Fixed Fiduciary System
    Answer: A

  8. The term “Base Rate” refers to –
    A) Minimum rate below which banks cannot lend
    B) RBI lending rate
    C) Repo rate
    D) Inflation rate
    Answer: A

  9. What is the full form of SWIFT?
    A) Society for Worldwide Interbank Financial Telecommunication
    B) Secure Wire Transfer
    C) Systematic Wire Fund Transfer
    D) Standard Wire Fund Transaction
    Answer: A

  10. The first Indian bank to introduce Internet Banking was –
    A) ICICI Bank
    B) SBI
    C) HDFC Bank
    D) Axis Bank
    Answer: A

  11. The minimum paid-up capital for small finance banks is –
    A) ₹100 crore
    B) ₹200 crore
    C) ₹500 crore
    D) ₹50 crore
    Answer: A

  12. The term “Fiat Money” refers to –
    A) Money declared legal tender by government
    B) Money backed by gold
    C) Money accepted internationally
    D) Cryptocurrency
    Answer: A

  13. DICGC provides insurance cover to bank deposits up to –
    A) ₹1 lakh
    B) ₹5 lakh
    C) ₹10 lakh
    D) ₹50,000
    Answer: B

  14. Which bank is known as the apex bank for agriculture and rural development?
    A) NABARD
    B) RBI
    C) SIDBI
    D) SBI
    Answer: A

  15. Which of the following is not a cooperative bank?
    A) Saraswat Bank
    B) Urban Cooperative Bank
    C) Axis Bank
    D) District Cooperative Bank
    Answer: C

  16. The Banking Regulation Act was passed in –
    A) 1949
    B) 1951
    C) 1956
    D) 1934
    Answer: A

  17. Which organization handles external debt and reserves of India?
    A) RBI
    B) SEBI
    C) NABARD
    D) EXIM Bank
    Answer: A

  18. “LAF” in banking refers to –
    A) Liquidity Adjustment Facility
    B) Loan Adjustment Formula
    C) Legal Advance Framework
    D) Local Adjustment Facility
    Answer: A

  19. Which of the following is not a subsidiary of the RBI?
    A) NHB
    B) BRBNMPL
    C) DICGC
    D) NABARD
    Answer: D

  20. Which of the following statements is correct?
    A) RBI issues one rupee notes
    B) Ministry of Finance issues one rupee notes
    C) SBI issues one rupee notes
    D) None of these
    Answer: B

  21. What is the purpose of “Open Market Operations”?
    A) Control liquidity in the economy
    B) Encourage exports
    C) Promote savings
    D) Regulate stock market
    Answer: A

  22. The full form of PCA is –
    A) Prompt Corrective Action
    B) Primary Credit Arrangement
    C) Public Credit Analysis
    D) Provisional Cash Agreement
    Answer: A

  23. The headquarters of EXIM Bank is located at –
    A) Mumbai
    B) New Delhi
    C) Chennai
    D) Hyderabad
    Answer: A

  24. The term “Fiscal Deficit” refers to –
    A) Excess of expenditure over revenue
    B) Excess of revenue over expenditure
    C) Total tax collection
    D) Total savings
    Answer: A

  25. A “Bearer Cheque” is payable to –
    A) The person holding the cheque
    B) The person named on the cheque
    C) Bank manager
    D) None
    Answer: A

  26. Which of the following is not a negotiable instrument?
    A) Cheque
    B) Bill of Exchange
    C) Fixed Deposit Receipt
    D) Promissory Note
    Answer: C

  27. What does CRAR stand for?
    A) Capital to Risk (Weighted) Assets Ratio
    B) Credit Risk Assets Ratio
    C) Cash Reserve Adjustment Ratio
    D) None
    Answer: A

  28. The term “Monetary Policy” is formulated by –
    A) RBI
    B) Ministry of Finance
    C) SEBI
    D) NITI Aayog
    Answer: A

  29. The first Indian bank to open a branch outside India was –
    A) Bank of India
    B) PNB
    C) SBI
    D) Indian Bank
    Answer: A

  30. Treasury Bills are issued for a maximum period of –
    A) 364 days
    B) 90 days
    C) 1 year
    D) 2 years
    Answer: A

  31. The main objective of RBI’s monetary policy is –
    A) Control inflation
    B) Promote imports
    C) Reduce exports
    D) Control population
    Answer: A

  32. The term “SLR” means banks have to keep –
    A) A part of deposits in liquid assets
    B) Entire cash in vaults
    C) Deposits with RBI
    D) Government securities only
    Answer: A

  33. The head office of Indian Bank is located in –
    A) Chennai
    B) Mumbai
    C) Delhi
    D) Hyderabad
    Answer: A

  34. Which bank was earlier known as UTI Bank?
    A) Axis Bank
    B) IDBI Bank
    C) ICICI Bank
    D) HDFC Bank
    Answer: A

  35. Which of these is not a component of the capital market?
    A) Equity market
    B) Debt market
    C) Treasury Bills
    D) Derivatives market
    Answer: C

  36. The term “Deflation” means –
    A) Decrease in general price level
    B) Increase in prices
    C) Reduction in money supply
    D) None
    Answer: A

  37. What does RTGS stand for?
    A) Real Time Gross Settlement
    B) Real Time Government Settlement
    C) Rapid Transfer Gross System
    D) Real Transaction Gross Settlement
    Answer: A

  38. The head office of Punjab National Bank is located at –
    A) New Delhi
    B) Mumbai
    C) Kolkata
    D) Lucknow
    Answer: A

  39. The full form of “MSME” is –
    A) Micro, Small and Medium Enterprises
    B) Macro, Small and Medium Enterprises
    C) Micro, Short and Medium Enterprises
    D) None
    Answer: A

  40. RBI regulates NBFCs under which Act?
    A) RBI Act, 1934
    B) Banking Regulation Act, 1949
    C) Companies Act, 2013
    D) SEBI Act
    Answer: A

  41. The main objective of SEBI is to –
    A) Protect investors’ interest
    B) Regulate insurance
    C) Issue currency
    D) Provide agricultural finance
    Answer: A

  42. “Call Money Market” deals with –
    A) Short-term funds
    B) Long-term loans
    C) Bonds
    D) Shares
    Answer: A

  43. When was SBI established?
    A) 1955
    B) 1947
    C) 1969
    D) 1935
    Answer: A

  44. Which bank is the sponsor of SBI?
    A) RBI
    B) Government of India
    C) Imperial Bank of India
    D) NABARD
    Answer: C

  45. Which of the following is not a financial regulator in India?
    A) TRAI
    B) SEBI
    C) RBI
    D) IRDAI
    Answer: A

  46. Which of these is a type of electronic card?
    A) Debit Card
    B) Credit Card
    C) Prepaid Card
    D) All of the above
    Answer: D

  47. “Bharat Bill Payment System (BBPS)” is managed by –
    A) NPCI
    B) RBI
    C) SBI
    D) SEBI
    Answer: A

  48. The term “Plastic Money” refers to –
    A) Credit and debit cards
    B) Paper currency
    C) Gold coins
    D) Digital wallets
    Answer: A

  49. Who issues coins in India?
    A) Government of India
    B) RBI
    C) SBI
    D) Finance Commission
    Answer: A

  50. “Digital Banking Units (DBUs)” are launched by –
    A) RBI & Government of India
    B) SEBI
    C) IRDAI
    D) NABARD
    Answer: A

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