Banking Awareness Questions For IBPS Clerk, IBPS PO, SBI Associates PO and Other Banking Exam

Banking Awareness Questions For IBPS PO, SBI Associates PO, IBPS Clerk,  and Other Banking Examination : Here is a list of Possible General Awareness and Banking Awareness questions from Banking Field which is very important for the IBPS PO, IBPS CLERK, RBI OFFICER, SBI ASSOCIATES PO examination. These questions are most expected Current affairs, Banking affairs question for Any Banking Examination . So carefully read these question along with its answer.

Banking Awareness Questions 2014 

for All Banking Exams

1. Which bank is appointed to take care of refunding excess income tax paid to tax payers?

• {A} AXIS Bank
• {B} PNB
• {C} ICICI Bank
• {D} SBI
• {E} None 

Ans : SBI 

2. What is nomination?

• {A} A facility given to depositors by the Government
• {B} It confers a right to the nominee to receive payment of a deposit after death of depositor
• {C} It is a process of appointing legal heir by the depositors
• {D} It is a part of will on behalf of a depositor
• {E} It is a direction to the bank to pay to nominee only if legal heirs do not claim the balance deposit amount

Ans : It confers a right to the nominee to receive payment of a deposit after death of depositor

3. Relation between banker & customer in respect of amounts in transit is called

• {A} Agr & Principle
• {B} Debtor & Creditor
• {C} Trustee & Beneficiary
• {D} None 
• {E} All of these

Ans : Trustee & Beneficiary

4. The charge created by a bank to sanction a loan against Insurance Policy is known as 

• {A} Assignment
• {B} Arbitrage
• {C} Amortization
• {D} Acquisition
• {E} None 

Ans : Assignment

5. Which public sector bank is the leader in mobile banking business in India?

• {A} ICICI
• {B} HDFC
• {C} SBI
• {D} Axis Bank
• {E} UBI

Ans :  SBI

6. The Reserve Bank of India (RBI) has decided to withdraw its nominee directors from the boards of which of the following types of banks?

• {A} Co-operative Banks
• {B} Nationalized Banks
• {C} Private Sector Banks
• {D} Foreign Banks
• {E} None 

Ans : Private Sector Banks

7. The National Agricultural Insurance Scheme was started by the Govt. of India in which season ?

• {A} 1990-91 Kharif season
• {B} 1995-96 Kharif-season
• {C} 1997-98 Rabi Season
• {D} 1998-99 Kharif season
• {E} 1999-2000 Rabi season

Ans : 1999-2000 Rabi season

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

• {A} India
• {B} Bangladesh
• {C} South Africa
• {D} USA
• {E} Canada

Ans : Bangladesh

9. Which of the following is NOT a foreign bank functioning in India?

• {A} BNP Paribas
• {B} Bank of Nova Scotia
• {C} Standard Chartered Bank
• {D} HSBC
• {E} YES BANK

Ans : YES BANK

10. As per the current year taxation policy the maximum amount of housing loan rebate under section 80C is allowed up to ___

• {A} Rs. 1.00 lakh
• {B} Rs. 1.50 lakh
• {C} Rs. 2.00 lakh
• {D} Rs. 2.50 lakh
• {E} Rs. 3.00 lakh

Ans : Rs. 1.50 lakh

11. 84th annual general meeting of BIS held in which place ?

• {A} Hyderabad
• {B} Tokyo
• {C} Frankfurt
• {D} Paris
• {E} Basel

Ans : Basel

12. Which among the following is correct full form of CAS in context with banking market in India?

• {A} Cash Authorization Scheme
• {B} Credit Authorization Scheme
• {C} Credit Access System
• {D} Credit Arrangement System
• {E} Cash Accreditation Scheme

Ans : Credit Authorization Scheme

13. Which of the following term is NOT related with Banking/ Finance?

• {A} Annuity
• {B} Line of Credit
• {C} Legal heir
• {D} Fore Closure
• {E} None of the above

Ans : None of the above

14. What will be the impact on the cash reserves of commercial banks if RBI conducts a sale of securities?

• {A} Increase
• {B} Decrease
• {C} Remain constant
• {D} Increase or Decrease
• {E} Increase if the securities are sold in open market operations

Ans : None of the above

15. Banks in India are permitted to have fixed deposit for a period of maximum ____

• {A} 60 months
• {B} 72 months
• {C} 84 months
• {D} 96 months
• {E} 120 months

Ans : 120 months

16. Which one of the following rates signal the RBI's long term outlook on Interest Rates?

• {A} Repo Rate
• {B} Reverse Repo Rate
• {C} Bank Rate
• {D} SLR
• {E} CRR

Ans : Bank Rate

17. Which public sector bank is the second bank in the world that have above 10,000 branches?

• {A} Punjab National Bank
• {B} State Bank of India
• {C} Bank of Baroda
• {D} Bank of India
• {E} Syndicate Bank

Ans : State Bank of India

18. The Head Office of Standard chartered Bank is located in which country ?

• {A} France
• {B} USA
• {C} Russia
• {D} Germany
• {E} UK

Ans : UK (United Kingdom)

19. Which is the first bank in India that got ISO Certification?

• {A} Canara bank
• {B} PNB
• {C} South Indian Bank
• {D} SBI
• {E} SBH

Ans : Canara bank

20. Which of the following is a scheduled bank?

• {A} Indian Bank
• {B} Ratnakar Bank
• {C} OBC
• {D} IDBI
• {E} All of these

Ans : All of these

21. Which bank has first time lunched the withdrawn money from ATMs without ATM card?

• {A} ICICI
• {B} SBI
• {C} UBI
• {D} Axis
• {E} HDFC

Ans : ICICI

22. "Deepika Padukone" is the brand ambassador of which Bank?

• {A} ICICI
• {B} Axis
• {C} SBI
• {D} HDFC
• {E} Yes Bank

Ans : Axis Bank

23. The rates of SLR/ CRR will be valid ___

• {A} Once in a year
• {B} Twice in year
• {C} Thrice in a year
• {D} Till any change is announced
• {E} None of the above

Ans : Till any change is announced

24. Which public-sector bank declared Kingfisher Airlines, its promoter Vijay Mallya and three directors as "willful defaulters" on 1 September 2014, with which it became the first bank to make such a declaration against Mallya?

• {A} United Bank of India
• {B} SBI
• {C} PNB
• {D} Bank of Baroda
• {E} Allahabad Bank

Ans : United Bank of India

25. What is the slogan (punch line ) of Pradhan Mantri Jan Dhan Yojana (PMJDY) which was launched on 28 August 2014?

• {A} Mera Account Bhagya vidhataa
• {B} Mera khaata Bhagya vidhataa
• {C} My bank my country
• {D} Mera account mera Bharat
• {E} None 

Ans : Mera khaata Bhagya vidhataa

26. What are the features of selective credit control?

• {A} They distinguish between essential and non-essential uses of Bank credit
• {B} Only non-essential uses are brought under the scope of Credit Bank controls
• {C} They affect not only the lenders but also the borrowers
• {D} a, b & c
• {E} Only a & b

Ans : a, b & c

27. Which of the following Acts is specially launched to facilitate banks in recovery of bad loans?

• {A} RBI Act
• {B} Banking Regulation Act
• {C} SARFAESI Act
• {D} Companies Act
• {E} Income Tax Act

Ans : SARFAESI Act

28. Negotiable Instrument Act was passed in which year ?

• {A} 1881
• {B} 1892
• {C} 1885
• {D} 1857
• {E} 1860

Ans : 1881

29. RBI prepares the Annual Financial Statements as on which Date ?

• {A} 31st March
• {B} 30th Sept
• {C} 31st Dec
• {D} 30th June
• {E} None 

Ans : 30th June

30. What is the maximum amount that can be remitted by any person to NEPAL through NEFT under Indo-Nepal Remittance Facility Scheme?

• {A} Rs. 25000/-
• {B} Rs. 30000/-
• {C} Rs. 35000/-
• {D} Rs. 40000/-
• {E} Rs. 50000/-

Ans : Rs. 50000/-

31. Electronic Clearing Service in banks can be availed only by:

• {A} Individuals
• {B} Corporate
• {C} Senior Citizens
• {D} All of these
• {E} None of the above

Ans : All of these

32. Business risks in Risk Based Supervision are:

• {A} Capital and credit risk
• {B} Market risk
• {C} Liquidity risk
• {D} Staff Risk
• {E} Only a, b & c

Ans :  Only a, b & c


33. Which of the following cannot be called as a Debt Instrument as referred in financial transactions?

• {A} Certificate of Deposits
• {B} Bonds
• {C} Stocks
• {D} Commercial Papers
• {E} All the above

Ans : Stocks

34. Which of the following statements is not correct?

• {A} Monetary policy has facilitated growth of financial institutions
• {B} Monetary policy has resulted in widening the gaps between rich and poor
• {C} Monetary policy has improved the balance of payment position
• {D} Credit policy has been instrumental in the increased savings rate
• {E} None of the above

Ans : Monetary policy has resulted in widening the gaps between rich and poor

35. The purpose of Open Market Operation of RBI is to regulate which of the following?

• {A} Inflation only
• {B} Liquidity in economy
• {C} Borrowing powers of the banks
• {D} Flow of Foreign Direct Investments
• {E} None 

Ans : Liquidity in economy

36. The maximum interest paid on PPF (Public Provident Fund ) is:

• {A} 7.0%
• {B} 8.0%
• {C} 8.7%
• {D} 9.0%
• {E} 9.7%

Ans : 8.7%

37. Which was the first Indian Bank to introduce credit card?

• {A} State Bank of India
• {B} Central Bank of India
• {C} Union Bank of India
• {D} ICICI
• {E} None 

Ans : Central Bank of India

38. Which of the following is necessary while opening deposit accounts in banks?

• {A} Will
• {B} Registration
• {C} Nomination
• {D} Indemnity
• {E} Guarantee

Ans : Nomination

39. Which of the following is a short term government security?

• {A} Debenture
• {B} Mutual funds
• {C} Treasury bill
• {D} Share
• {E} None 

Ans : Treasury bill

40. What is Call Money?

• {A} Money borrowed or lent for a day or over night
• {B} Money borrowed for more than one day but up to 3 days
• {C} Money borrowed for more than one day but up to 7 days
• {D} Money borrowed for more than one day but up to 14 days
• {E} None 

Ans : Money borrowed or lent for a day or over night

41. Banking services delivered to a customer by means of a computer control system that does not directly involve banks branch is called?

• {A} Universal banking
• {B} Virtual banking
• {C} Narrow banking
• {D} Brick & Mortal banking
• {E} None 

Ans : Virtual banking

42. ____ provides insurance cover for bank deposits up to a maximum of Rs 1.00 lakh.

• {A} SBI
• {B} Government of India
• {C} DICGC
• {D} GIC
• {E} None 

Ans :DICGC

43. Which of the following concept/ product not directly associated with banks?

• {A} E-payment
• {B} SMS Alert
• {C} ATM/ Debit Card
• {D} Demat Account
• {E} Number Portability

Ans : Number Portability