Banking Financial Awareness · General Awareness

Banking Institutions and History

1,351 Questions

Review crucial questions related to banking institutions, their histories, and recent financial events. This set covers bank mergers, taglines, and key regulatory changes by the Reserve Bank of India. It is highly relevant for aspirants of banking and insurance exams.

Bank taglinesBank mergersRBI regulationsFinancial institutions historyBanking licenses

Banking Institutions and History Questions

Multiple choice

Which is the first Urban Co-operative Bank to introduce 'Entrepreneurship Core Banking'?

  1. Bharat Co-operative Bank Ltd

  2. Gujrat Co-operative Bank Ltd.

  3. Maharashtra State Co-operative Bank Ltd.

  4. Ahmedabad Mercantile Co-operative Bank Ltd.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Bharat Co-operative Bank Ltd is recognized for being an early adopter of advanced banking technology, including the implementation of systems that support entrepreneurship through core banking solutions.

Multiple choice

Which of the following statements is correct regarding co-operative banks?

  1. State Co-operative Bank is Apex Co-operative bank whose capital is owned by Central Co-operative Banks and State Governments.
  2. Each State has one or more State Co operative Bank(s).
  3. State Co-operative Banks can establish their branches at centre where there is no Central Co-operative bank.

  1. 1

  2. 1 and 2

  3. 2 and 3

  4. 1, 2 and 3
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

State Co-operative Banks (StCBs) act as the apex body at the state level. They are owned by Central Co-operative Banks and the state government, they exist in every state, and they can open branches in areas lacking a Central Co-operative Bank.

Multiple choice

Which is the largest co-operative bank of India?

  1. Saraswat Co-operative Bank

  2. Shamrao Vitthal Co-operative Bank

  3. Maratha Mandir Co-operative Bank

  4. South Indian Co-operative Bank

  5. None of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Saraswat Co-operative Bank is widely recognized as the largest Urban Co-operative Bank in India in terms of total business and branch network.

Multiple choice

Which of the following statements is correct regarding Urban Co-operative Banks?

  1. There are more than 2000 Urban Co-operative Banks in India at present.
  2. Urban Co-operative Banks are regulated by Reserve Bank of India and Registrar of Co-operative Societies both.
  3. 90-days NP A norms are applicable in Urban Co-operative Banks since March 2004.

  1. 1

  2. 1 and 2

  3. 2 and 3

  4. 1, 2 and 3
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

There are over 2000 UCBs, they are dual-regulated by the RBI and the Registrar of Co-operative Societies, and the 90-day NPA norm was indeed implemented for UCBs in March 2004.

Multiple choice

Which Urban Co-operative Bank(s) was/were declared as a Non-Scheduled Co-operative Bank(s) by the Reserve Bank of India?

  1. Thane Bharat Sahakari Bank

  2. Jorastrain Co-operative Bank

  3. Both the above

  4. None of the above

  5. Akhand Anand Co-Operative Bank Ltd.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Both Thane Bharat Sahakari Bank and Zoroastrian Co-operative Bank have been subject to regulatory reclassifications by the RBI, including being declared as non-scheduled at various points in time.

Multiple choice

A scheduled co-operative bank is a co-operative bank that has its aggregate Demand and Time Liabilities of…………………..or more and which has been authorised by Reserve Bank of India to issue Bank Guarantee.

  1. Rs 50 crore

  2. Rs 100 crore

  3. Rs 200 crore

  4. Rs 500 crore
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A scheduled co-operative bank must meet specific criteria set by the RBI, including having aggregate Demand and Time Liabilities of at least Rs 100 crore and being authorized to issue bank guarantees.

Multiple choice

Which of the following statements is not correct in respect of Local Area Banks?

  1. It is registered under Indian Companies Act

  2. It is not included in second schedule of Reserve Bank of India

  3. Provisions that are applicable to RRBs are also applicable to Local Area Bank

  4. It is established wholly in private sector and it has no stake of Govt. in the capital
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Local Area Banks (LABs) are established in the private sector and are included in the second schedule of the Reserve Bank of India. The claim that provisions applicable to Regional Rural Banks (RRBs) apply to Local Area Banks is incorrect, as they are governed by different regulatory frameworks.

Multiple choice

Which of the following undertakings were merged to form 'National Bank of Agriculture and Rural Development'?1. Agriculture Credit Department of RBI

  1. Agriculture Refinance and Development Corporation
  2. Rural Planning and Credit Centre

  1. 1 and 2

  2. 1 and 3

  3. 2 and 3

  4. 1, 2 and 3
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

NABARD was established on the recommendations of the B. Sivaraman Committee by merging the Agriculture Credit Department of RBI, the Agriculture Refinance and Development Corporation (ARDC), and the Rural Planning and Credit Cell of RBI. All three listed entities were involved.

Multiple choice

Which of the following is not a Local Area Bank out of three functioning at present?

  1. Coastal Local Area Bank, Vijayawada (Andhra Pradesh)

  2. Capital Local Area Bank, Nakodar (Punjab)

  3. Krishna Bhim Smridhi Local Area Bank, Mehbubnagar (Andhra Pradesh)

  4. Manipal Local Area Bank, Manipal (Karnataka)
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Manipal Local Area Bank is not one of the original or currently recognized Local Area Banks in the context of the three main ones often cited in banking exams.

Multiple choice

Which of the following statements is correct regarding NABARD?

  1. It is an apex bank functioning for Agriculture and Rural Development.
  2. It provides refinance to commercial banks for all-round rural development.
  3. It cannot raise funds from abroad.

  1. 1 and 2

  2. 1 and 3

  3. 2 and 3

  4. 1, 2 and 3
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

NABARD is an apex bank for rural development and provides refinance. However, it is authorized to raise funds from abroad, making statement 3 incorrect.