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NABARD GK Questions 2026

The static part of NABARD's awareness tests is economics, rural society and agriculture more than history or sports. The Grade A syllabus for Economic & Social Issues covers the nature of the Indian economy, reforms, inflation, poverty and its measurement, population policy, rural credit, industrial policy, banking reforms, international institutions, social structure, education, social justice and human development. The Agriculture & Rural Development syllabus covers agronomy, soils and irrigation, farm engineering, horticulture, animal husbandry, fisheries, forestry, extension, ecology and climate change, agricultural finance and marketing, and rural development programmes and Panchayati Raj. This page holds GK24's topic-wise GK notes for NABARD. Each note is written as short facts and tables, so a topic can be revised in one sitting. The Indian Economy notes serve most of ESI. The Indian Polity notes cover Panchayati Raj and social justice. The Geography notes cover soils, irrigation, climate and forests, and the Environment and Ecology notes cover climate change and its international bodies. The Computer notes serve the Computer Knowledge test, and Static GK helps with General Awareness. Agronomy, animal husbandry and fisheries go beyond general GK, so use the advertisement's ARD list as a checklist for them. Read a note, then take its quiz on this site to check what you retained.

NABARD GK Questions with Answers

Q261.Banking & Financial AwarenessMedium

The headquarters of SWIFT is located in which country?

  1. A.Switzerland
  2. B.Belgium
  3. C.The United States of America
  4. D.The United Kingdom
Show answer
Correct answer: B. Belgium

SWIFT is headquartered at La Hulpe, in the outskirts of Brussels, and it is therefore incorporated under Belgian law and supervised by a committee of central banks with the National Bank of Belgium as the lead overseer.

Q262.Banking & Financial AwarenessEasy

SWIFT, used by banks for cross-border messages, stands for:

  1. A.Secure Worldwide International Funds Transfer
  2. B.Society for Worldwide Interbank Financial Telecommunication
  3. C.System for Wire Transfer of International Financial Transactions
  4. D.Standard Worldwide Interbank Funds Transfer
Show answer
Correct answer: B. Society for Worldwide Interbank Financial Telecommunication

The word Society is the key, because SWIFT is a cooperative society owned by its member financial institutions rather than a company or a public authority.

Q263.Banking & Financial AwarenessMedium

Under the ICC Incoterms, in a contract on CIF terms the seller bears the cost of:

  1. A.Only making the goods available at its own premises
  2. B.Carriage and marine insurance up to the named port of destination
  3. C.All import duties and taxes at the destination
  4. D.Inland carriage within the buyer's country only
Show answer
Correct answer: B. Carriage and marine insurance up to the named port of destination

CIF stands for cost, insurance and freight: the seller pays the cost of the goods, contracts and pays for the freight to the named destination port, and takes out marine insurance for the buyer's benefit.

Q264.Banking & Financial AwarenessHard

After the large fraud detected at Punjab National Bank, which instrument did the Reserve Bank of India discontinue in March 2018 for trade credit on imports?

  1. A.Letter of credit
  2. B.Letter of undertaking
  3. C.Bank guarantee
  4. D.Standby letter of credit
Show answer
Correct answer: B. Letter of undertaking

In March 2018 the Reserve Bank discontinued the issuance of letters of undertaking and letters of comfort for trade credit relating to imports into India.

Q267.Banking & Financial AwarenessMedium

An exporter who has received a letter of credit from the overseas buyer opens a fresh credit in favour of its own raw material supplier, on the strength of that first credit. This is a:

  1. A.Revolving credit
  2. B.Back-to-back credit
  3. C.Red clause credit
  4. D.Standby letter of credit
Show answer
Correct answer: B. Back-to-back credit

Here the export credit received by the middleman or manufacturer is used as the security for a second, usually smaller, credit issued in favour of the supplier of the goods or the raw material.

Q268.Banking & Financial AwarenessHard

Which section of the Indian Contract Act, 1872 provides that the liability of the surety is coextensive with that of the principal debtor, unless the contract provides otherwise?

  1. A.Section 124
  2. B.Section 126
  3. C.Section 128
  4. D.Section 130
Show answer
Correct answer: C. Section 128

It lays down that the surety's liability is coextensive with that of the principal debtor unless it is otherwise provided by the contract, which is why a bank that gives an unconditional guarantee can be called upon for the whole amount without the creditor first exhausting its remedies against the…

Q269.Banking & Financial AwarenessMedium

For a bank, issuing a bank guarantee is best described as:

  1. A.A fund-based working capital advance
  2. B.A non-fund based facility creating a contingent liability
  3. C.A term loan secured by immovable property
  4. D.An investment in approved securities
Show answer
Correct answer: B. A non-fund based facility creating a contingent liability

On the day a guarantee is issued no money leaves the bank. The bank lends only its name, earns commission as fee income, and records the amount as a contingent liability that will become a real outflow only if the beneficiary invokes the guarantee and the bank has to pay.

Q270.Banking & Financial AwarenessEasy

A contract of guarantee in India is defined and governed by which law?

  1. A.The Negotiable Instruments Act, 1881
  2. B.The Indian Contract Act, 1872
  3. C.The SARFAESI Act, 2002
  4. D.The Foreign Exchange Management Act, 1999
Show answer
Correct answer: B. The Indian Contract Act, 1872

Section 126 of that Act defines a contract of guarantee as a contract to perform the promise or discharge the liability of a third person in case of his default, and names the three parties: the surety who gives the guarantee, the principal debtor whose default is covered, and the…

Q271.Banking & Financial AwarenessMedium

Under UCP 600, a letter of credit that carries no statement about whether it may be cancelled is treated as:

  1. A.Revocable, because silence favours the issuing bank
  2. B.Irrevocable, even without any indication to that effect
  3. C.Automatically confirmed by the advising bank
  4. D.Automatically transferable to a second beneficiary
Show answer
Correct answer: B. Irrevocable, even without any indication to that effect

Article 3 of UCP 600 states this in so many words, and Article 10 adds that an irrevocable credit can be amended or cancelled only with the agreement of the issuing bank, the confirming bank if any, and the beneficiary.

Q272.Banking & Financial AwarenessMedium

Under UCP 600, what is the maximum period a bank has to examine a presentation and decide whether the documents comply?

  1. A.Three banking days following the day of presentation
  2. B.Five banking days following the day of presentation
  3. C.Seven calendar days from presentation
  4. D.Fifteen calendar days from presentation
Show answer
Correct answer: B. Five banking days following the day of presentation

Article 14(b) of UCP 600 gives the issuing bank, a confirming bank and any nominated bank a maximum of five banking days following the day of presentation to determine whether the presentation is complying.

Q275.Indian EconomyAsked in: UPSC Civil Services · CSE Prelims 2021, GS Paper IMedium

Indian Government Bond Yields are influenced by which of the following?

1. Actions of the United States Federal Reserve

2. Actions of the Reserve Bank of India

3. Inflation and short-term interest rates

Select the correct answer using the code given below.

  1. A.1 and 2 only
  2. B.2 only
  3. C.3 only
  4. D.1, 2 and 3
Show answer
Correct answer: D. 1, 2 and 3

Indian bond yields respond to the RBI's policy, to domestic inflation and short-term rates, and also to the US Federal Reserve through global capital flows.

Q276.Banking & Financial AwarenessAsked in: UPSC Civil Services · CSE Prelims 2021, GS Paper IHard

With reference to 'Urban Cooperative Banks' in India, consider the following statements :

1. They are supervised and regulated by local boards set up by the State Governments.

2. They can issue equity shares and preference shares.

3. They were brought under the purview of the Banking Regulation Act, 1949 through an Amendment in 1966.

Which of the statements given above is/are correct?

  1. A.1 only
  2. B.2 and 3 only
  3. C.1 and 3 only
  4. D.1, 2 and 3
Show answer
Correct answer: B. 2 and 3 only

Urban Cooperative Banks are regulated by the RBI, not by local boards, and they may raise capital through equity and preference shares.

Q277.Indian EconomyAsked in: UPSC Civil Services · CSE Prelims 2022, GS Paper IHard

With reference to the Indian economy, consider the following statements :

1. An increase in Nominal Effective Exchange Rate (NEER) indicates the appreciation of rupee.

2. An increase in the Real Effective Exchange Rate (REER) indicates an improvement in trade competitiveness.

3. An increasing trend in domestic inflation relative to inflation in other countries is likely to cause an increasing divergence between NEER and REER.

Which of the above statements are correct ?

  1. A.1 and 2 only
  2. B.2 and 3 only
  3. C.1 and 3 only
  4. D.1, 2 and 3
Show answer
Correct answer: C. 1 and 3 only

A rise in NEER means the rupee has gained against a basket of currencies, and higher domestic inflation makes REER drift away from NEER.

Q278.Indian EconomyAsked in: UPSC Civil Services · CSE Prelims 2022, GS Paper IMedium

"Rapid Financing Instrument" and "Rapid Credit Facility" are related to the provisions of lending by which one of the following ?

  1. A.Asian Development Bank
  2. B.International Monetary Fund
  3. C.United Nations Environment Programme Finance Initiative
  4. D.World Bank
Show answer
Correct answer: B. International Monetary Fund

Both are IMF windows for quick emergency financing to member countries facing an urgent balance of payments need. The Rapid Financing Instrument (RFI) is open to all IMF members and gives fast, low-access financial help without a full-fledged programme.