Banking Financial Awareness · General Awareness

Banking Institutions and History

1,287 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 history industrial sector growth of banks in india nationalisation and privatisation of banks private sector anddifference between public and private sector

Which was the first indigenous bank established in India?

  1. Central Bank of India

  2. Punjab National Bank

  3. Reserve Bank of India

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

The first bank purely managed bu Indian was Punjab National Bank, established in Lahore in 1895. The Punjab National Bank has not only survived till date but also one of the largest banks in India.

Multiple choice history industrial sector growth of banks in india nationalisation and privatisation of banks private sector anddifference between public and private sector

Which one of the following pairs is matched correctly_________.

  1. Regional Rural Banks - Agriculture

  2. Industrial Development Bank of India (IDBI) - Short term financing

  3. Reserve Bank of India(RBI) - Long term financing

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

Regional Rural Banks were formed under the R.R.B. Act, 1976, with an objective to provide credit and other facilities to small farmers, agricultural labourers and artisans in rural areas.

Multiple choice history industrial sector growth of banks in india nationalisation and privatisation of banks private sector anddifference between public and private sector

In $1955$, Imperial Bank of India, a leading commercial bank of that time, was nationalized and renamed as _____________.

  1. Central Bank of India

  2. Bank of India

  3. Indian Bank

  4. State Bank of India
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

First of all Imperial Bank of India was taken over by the Government of India on July $1$, $1955$ and was named as State Bank of India. Along with it eight other (at present seven) were converted as it associate banks and they formed State Bank Group.
$1$. The State Bank of Bikaner and Jaipur. (Earlier Bikaner and Jaipur were separate banks)
$2$. The State Bank of Hyderabad
$3$. The State Bank of Indore
$4$. The State Bank of Mysore
$5$. The State Bank of Saurastra
$6$. The State Bank of Patiala
$7$. The State Bank of Travancore.

Multiple choice history industrial sector growth of banks in india nationalisation and privatisation of banks private sector anddifference between public and private sector

The nationalized New Bank of India was later merged with ________.

  1. central bank of India

  2. bank of Baroda

  3. Punjab national bank

  4. canara bank
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The Government of India nationalized New Bank of India in 1980. Punjab National Bank acquired New Bank of India in 1993.

Multiple choice history industrial sector growth of banks in india nationalisation and privatisation of banks private sector anddifference between public and private sector

Which of the following Acts helps a bank in its day-to-day activities?

  1. Competition Act

  2. Negotiable Instruments Act

  3. Hindu Marriage Act

  4. Hindu Succession Act
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The Negotiable Instruments Act, 1881, is fundamental to banking as it governs instruments like cheques, bills of exchange, and promissory notes, which are essential for day-to-day banking transactions.

Multiple choice history public and private sectors growth of banks in india nationalisation and privatisation of banks private sector anddifference between public and private sector

Asia Bank is a _________________.

  1. Public Sector Bank

  2. Private Sector Bank

  3. Co-operative Bank

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

Asia Bank (often referring to entities like City Union Bank or similar regional private entities) is categorized as a private sector bank in the Indian banking landscape.

Multiple choice history industrial sector growth of banks in india nationalisation and privatisation of banks private sector anddifference between public and private sector

Prior to 1955 SBI was known as ______.

  1. Important Bank of India

  2. Central Bank of India

  3. Imperial Bank of India

  4. Indigenous Bank of India
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The State Bank of India (SBI) was formed by the nationalization of the Imperial Bank of India in 1955. The other options are incorrect as they do not represent the predecessor institution.

Multiple choice history industrial sector growth of banks in india nationalisation and privatisation of banks private sector anddifference between public and private sector

Industrial Investment Bank of India was initially set up as _____  during 1971.

  1. Industrial Reconstruction Corporation Ltd.

  2. Indian Reconstruction Bank Ltd.

  3. Industrial Reconstruction Bank of India

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

The Industrial Investment Bank of India was originally established in 1971 as the Industrial Reconstruction Corporation of India (IRCI) to assist sick industrial units.

Multiple choice history industrial sector growth of banks in india nationalisation and privatisation of banks private sector anddifference between public and private sector

Before nationalisation, Commercial Banks in India were having their branches in _________.

  1. urban areas

  2. rural areas

  3. semi-urban areas

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

Prior to nationalization, private commercial banks were heavily concentrated in urban areas where industrial and commercial activity was highest, leading to a lack of banking services in rural regions.

Multiple choice commercial studies concept of market and marketer meaning and importance of marketing meaning and definition of market introduction to marketing marketing environment meaning and definition of marketer role of marketing

Which one of the following is the apex institution in finance sector of India?

  1. IDBI

  2. NABARD

  3. NHB

  4. RBI
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The Reserve Bank of India (RBI) is the central bank and the apex monetary authority, overseeing the entire financial sector in India.