BPSC 70th Banking Awareness Questions with Answers & Explanations

MICR code on a cheque is used for

1. ALoan approval
2. BATM withdrawals
3. CFaster cheque processing
4. DForeign exchange

A loan is generally classified as NPA when interest or principal is overdue for more than

1. A90 days
2. B1 year
3. C30 days
4. D180 days

Payments banks can accept deposits but cannot

1. ALend money
2. BAccept salaries
3. CIssue debit cards
4. DOffer internet banking

SIDBI mainly supports the

1. AAgriculture sector
2. BExport of oil
3. CMicro, small and medium enterprise sector
4. DHousing sector

The reverse repo rate is the rate at which

1. ARBI borrows from banks
2. BGovernment borrows from abroad
3. CBanks borrow from RBI
4. DBanks lend to customers

The Basel norms relate to

1. AStock market listing
2. BTax collection
3. CInsurance premiums
4. DCapital adequacy of banks

The minimum amount for an RTGS transaction is

1. A₹1 lakh
2. B₹2 lakh
3. CNo minimum
4. D₹50,000

Payments banks can accept deposits but cannot

1. AAccept salaries
2. BIssue debit cards
3. COffer internet banking
4. DLend money

Regional Rural Banks were established in

1. A1969
2. B1982
3. C1991
4. D1975

KYC stands for

1. AKeep Your Cash
2. BKnow Your Customer
3. CKnow Your Credit
4. DKey Your Code

RTGS stands for

1. AReal Transfer Gross Settlement
2. BRapid Transfer Gross System
3. CReal Time General Settlement
4. DReal Time Gross Settlement

SLR refers to the share of deposits banks must keep as

1. AForeign currency
2. BLiquid assets such as cash, gold and government securities
3. CDeposits with RBI only
4. DLoans to farmers

The State Bank of India was formed in 1955 from the

1. AReserve Bank of India
2. BPunjab National Bank
3. CBank of Bengal only
4. DImperial Bank of India

The headquarters of SIDBI is in

1. ALucknow
2. BMumbai
3. CNew Delhi
4. DChennai

A cheque is valid for how long from the date of issue?

1. A6 months
2. B1 year
3. C1 month
4. D3 months

Under DICGC, deposits are insured up to

1. A₹1 lakh per depositor
2. BThe full amount
3. C₹10 lakh per account
4. D₹5 lakh per depositor per bank

CRR is the share of deposits banks must keep with the

1. ASEBI
2. BGovernment
3. CRBI
4. DTheir own branches as loans

A "Bank Rate" is the rate at which RBI

1. ALends long-term funds to banks
2. BLends to the public
3. CPays interest on savings accounts
4. DBuys foreign currency

NPA stands for

1. ANew Payment Arrangement
2. BNational Payment Authority
3. CNet Profit Account
4. DNon-Performing Asset

The "lender of last resort" in India is the

1. ANABARD
2. BFinance Ministry
3. CRBI
4. DSBI