Banking Knowledge Quiz

The Lead Bank Scheme was introduced in 1969 to promote integrated rural development and ensure banking services in underbanked areas. Each district was assigned a lead bank for coordination.

Stamp Duty is a tax levied by the Central Government but collected by State Governments. It's imposed on legal documents and transactions involving property transfer.

Excise Duty has traditionally been the largest source of revenue for the Indian government. It is a tax on manufactured goods and contributes significantly to the central exchequer.

Call money refers to very short-term funds borrowed and lent in the money market, typically for overnight to 14 days. Option B correctly states the period as 1 to 14 days, which captures the essence of call money being extremely short-term borrowing. Options A and C are too long for call money instruments, which are meant for immediate liquidity needs.

The Reserve Bank of India (RBI) is India's central bank responsible for regulating money circulation and monetary policy. Option C is correct as RBI controls the money supply, currency issuance, and credit flow in the Indian economy. NABARD focuses on agricultural refinance, while SBI is a commercial bank.

The Banking Ombudsman Scheme was introduced by the Reserve Bank of India (RBI) in 2006 to provide a grievance redressal mechanism for banking customers. Option C is correct as RBI regulates the banking sector and introduced this consumer protection scheme. Neither the Ministry of Finance nor NABARD introduced this specific scheme.

On July 19, 1969, the Government of India nationalized 14 major banks with deposits exceeding Rs. 50 crores. Option C is correct as this first phase of nationalization included 14 banks. The second phase in 1980 nationalized 6 more banks, making the total 20 nationalized banks.

The Reserve Bank of India was established on April 1, 1935, as per the provisions of the RBI Act, 1934. Option A is correct with the year 1935. The RBI was initially headquartered in Calcutta and later moved to Mumbai. India became independent in 1947, and RBI was nationalized in 1949.

In the second phase of bank nationalization on April 15, 1980, 6 more banks were nationalized by the Government of India. Option C is correct as these 6 banks met the criteria of having deposits over Rs. 200 crores. This brought the total number of nationalized banks to 20.

The first Governor of the Reserve Bank of India was Sir Osborne Smith (often written as A.B.A. Smith in some sources), who served from 1935-1937. Option B is correct, though the name appears as 'A.B.A. Smith' which is a variation of Sir Osborne Smith's name. Sir James B. Taylor was the second Governor. Neither Malhotra nor Narasimham was the first Governor.

The Imperial Bank of India was reconstituted as the State Bank of India on July 1, 1955, through the SBI Act, 1955. Option A is correct with the date '1st Jul 1955'. This transformation made SBI the largest commercial bank in India. The other dates (1968 and 1969) are associated with bank nationalization, not SBI's establishment.