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.

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Banking Institutions and History Questions

Multiple choice organization of commerce and management cooperative organisation features, organisation, advantages and disadvantages of cooperative organisation cooperative societies cooperative society introduction to huf joint hindu family business

Which of the following is example of producers' co-operative society?

  1. Haryana handloom

  2. Gujarat co-operative milk marketing federation

  3. Apna Bazar

  4. Urban Co-operative Banks
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Producers' cooperative societies are formed to help small producers in procuring raw materials or marketing their products. Haryana Handloom is an example of such a society.

Multiple choice political science india’s international relations india's relations with other countries india and her neighbours india and other countries

Which one of the following is the biggest moneylender for any country in the world?

  1. World Bank

  2. International Monetary Fund

  3. Reserve Bank of India

  4. Reserve Bank of Scotland
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

IMF was founded in 1945. Its headquarters is in Washington D.C. At present, there are 190 members. Its aim is to promote global economic growth and financial stability.

Multiple choice economics the state of the indian economy on the eve of independence agricultural market system policy of agriculture, industry and foreign trade under british rule rural development

Which of the following is the apex bank for agriculture credit in India?

  1. NABARD

  2. SIDBI

  3. REC

  4. KRIBHCO
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

NABARD (National Bank for Agriculture and Rural Development) is the apex regulatory body and development bank for agriculture credit in India.

Multiple choice business organisation introduction to financial markets concept of financial market meaning and definition of financial market concepts and functions of financial markets

State Bank of India was originally known as _________.

  1. Centurion Bank

  2. United Bank of India

  3. Imperial Bank

  4. None of the Above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

State Bank of India was originally known as Imperial Bank. Imperial Bank of India, 1955, was renamed on 30 April 1955 to the State Bank of India. Imperial Bank was established on 1921. Now, State Bank of India is one of the largest commercial banks of India.

Multiple choice social science rural development in india credit and banking in rural areas rural activities credit

The NABARD (National Bank of Agricultural and Rural Development) is __________.

  1. an apex body to looking into the credit needs of the rural sector

  2. the only body looking after all the credit needs of farmers

  3. the main source of finance for the regional rural banks

  4. all of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

NABARD (National Bank for Agriculture and Rural Development) was set up in 19821892 to function as an apex bank in the area of rural credit. This bank does not directly extend any loans to the rural people. It extends financial assistance to cooperatives and regional rural banks, who in turn make available loans to the farmers.

Multiple choice social science rural development in india credit and banking in rural areas rural activities credit

Which of the following operates at the district level?

  1. State Cooperative Bank

  2. Central Cooperative Bank

  3. Primary Agricultural Credit Society

  4. Reserve Bank of India
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

In the cooperative credit structure, the Primary Agricultural Credit Society (PACS) is at the village level, the Central Cooperative Bank is at the district level, and the State Cooperative Bank is at the state level.

Multiple choice social science rural development in india credit and banking in rural areas rural activities credit

Land Development Banks form a part of the __________.

  1. Commercial Banks

  2. Industrial Development Bank of India

  3. Food Corporation of India

  4. Cooperative Credit Structure
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Land Development Banks are a specialized part of the cooperative credit structure in India, focusing on providing long-term credit for agricultural land development.

Multiple choice social science rural development in india credit and banking in rural areas rural activities credit

Which of the following combination is correct?

  1. NABARD- Industrial loans

  2. Regional Rural Banks - Agricultural finance

  3. RBI - Long term finance

  4. IDBI - Short term finance
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

National Bank for Agriculture and Rural Development (NABARD) is an Apex Development Financial Institution in India. The Bank has been entrusted with "matters concerning Policy Planning and Operations in the field of credit for Agriculture and other Economic activities in Rural areas in India"


The RBI was established with the aim of being a banker's bank and also the bank for the government. Its task was to promote the economic growth of the country through various frameworks and economic policies of the government.

The main objectives of IDBI are to serve as the apex institution for term finance for industry in India. Its objectives include Co-ordination, regulation and supervision of the working of other financial institutions such as IFCI, ICICI, UTI, LIC, Commercial Banks and SFCs.

Hence only Regional Rural Bank provide agriculture finance.
So, B is the correct option.

Multiple choice social science rural development in india credit and banking in rural areas rural activities credit

Which of the following organisations/banks has done a commendable work in the field of micro-finance and was awarded Nobel Prize also in the past?

  1. Grameen Bank of Bangladesh

  2. CRY

  3. ASHA

  4. NABARD
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The Grameen Bank of Bangladesh, founded by Muhammad Yunus, pioneered the micro-finance model and was awarded the Nobel Peace Prize in 2006 for its efforts in poverty reduction.

Multiple choice social science rural development in india credit and banking in rural areas rural activities credit

Which of the following nations is considered the originator of the concept of Micro-Finance?

  1. India

  2. Bangladesh

  3. South Africa

  4. USA
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The Grameen Bank, which is  the first modern micro- credit institution, was founded in 1983 by Muhammad Yunus from Bangladesh. Yunus began the project in a small town called Jobra, using his own money to give small loans at low-interest rates to the poor in rural areas.

Multiple choice social science rural development in india credit and banking in rural areas rural activities credit

Which of the following is not one of the major functions of the National Bank for Agricultural and Rural Development (NABARD)?

  1. Acting as a regulator for cooperative banks and RRBs.

  2. Extending assistance to the government and others in matters related to rural development

  3. Providing refinance to lending institutions in rural areas

  4. Review of monetary and credit policy
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

NABARD is a development bank and a regulator for rural financial institutions, but it does not review the monetary and credit policy of the country. That is the primary responsibility of the Reserve Bank of India (RBI).

Multiple choice social science rural development in india credit and banking in rural areas rural activities credit

Which of the following is one of the major activities of the National Bank for Agriculture and Rural Development (NABARD)?

  1. On-site inspection of Cooperative Banks and Regional Rural Banks (RRBs)

  2. Helping Govt of India in preparing Union Budget and presenting it in the cabinet meeting

  3. Acting as custodian of the foreign exchange reserves of the country

  4. Deciding rate of interest on Savings Bank Accounts in Public Sector Banks
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

NABARD is responsible for the supervision and on-site inspection of Regional Rural Banks (RRBs) and Cooperative Banks to ensure their financial health. The other options describe functions belonging to the Ministry of Finance or the RBI.