The static part of the awareness test in SBI exams is banking and economy knowledge, which is why the PO Mains test is named General Awareness/ Economy/ Banking Knowledge and the Clerk Mains test General/ Financial Awareness. The sample questions in the Bank's booklet ask which institution introduced Know Your Customer norms, which sector drives State incomes, who led Operation Flood and what monetary policy is concerned with, and the real papers follow that line. The topics that recur are the RBI and its functions, monetary policy tools such as the repo rate, CRR and SLR, types of banks and accounts, NPAs, priority sector lending, KYC and anti-money-laundering rules, payment systems like UPI, NEFT and RTGS, banking terms and abbreviations, financial regulators such as SEBI, IRDAI and PFRDA, development institutions such as NABARD and SIDBI, the Union Budget and the Economic Survey, GDP, inflation and national income, and government schemes for financial inclusion, insurance and pensions. A few questions ask plain static GK: headquarters and heads, currencies and capitals, and dates in banking history. This page holds GK24's topic-wise GK notes for banking exams, written as short facts and tables so that a topic can be revised in one sitting. Read a topic, then solve its quiz and the SBI previous-year questions on this site to see what you retained.
How many parties are there to a bill of exchange?
A bill of exchange, defined in Section 5 of the Negotiable Instruments Act, 1881, is an unconditional order in writing by which the drawer directs another person, the drawee, to pay a certain sum to or to the order of the payee.
Read the full explanation →For how long is a cheque valid from the date written on it, under the present direction of the Reserve Bank of India?
The Reserve Bank of India directed that cheques, drafts, pay orders and banker's cheques would be payable for three months from the date of the instrument, with effect from 1 April 2012, cutting the earlier period of six months.
Read the full explanation →Two parallel transverse lines drawn across the face of a cheque, without the name of any bank, amount to which kind of crossing?
Section 123 of the Negotiable Instruments Act, 1881 provides that where a cheque bears across its face two parallel transverse lines, with or without words such as 'and company', that addition is a general crossing.
Read the full explanation →Dishonour of a cheque for insufficiency of funds in the account is dealt with under which section of the Negotiable Instruments Act, 1881?
Section 138 makes it a criminal offence to issue a cheque that is returned unpaid because the account has insufficient funds or because the amount exceeds the arrangement made with the bank.
Read the full explanation →Which section of the Negotiable Instruments Act, 1881 defines a cheque?
Section 6 says a cheque is a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand, and it goes on to include the electronic image of a truncated cheque and a cheque in the electronic form, both added by the amendment…
Read the full explanation →The payment of a negotiable instrument becomes due
Section 22 of the Negotiable Instruments Act, 1881 says that the maturity of a promissory note or bill of exchange payable otherwise than on demand is the date on which it falls due, and the three days of grace are already counted in arriving at that date.
Read the full explanation →Negotiable Instrument Act was introduced in
The Negotiable Instruments Act was enacted in 1881 and came into force on 1 March 1882.
Read the full explanation →A cheque returned by bank marked NSF means that
NSF stands for not sufficient funds, and a bank writes it on the return memo when the balance in the drawer's account is less than the amount of the cheque.
Read the full explanation →A paper instructing the bank to pay a specific amount from a person's account to another person in whose name it has been issued is known as:
Section 6 of the Negotiable Instruments Act, 1881 defines a cheque as a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand.
Read the full explanation →Which of the following is a non-fund based credit facility of a bank?
In a non-fund based facility the bank does not part with money at the time the facility is granted; it only undertakes to pay if the customer fails to, and it charges a commission for that undertaking.
Read the full explanation →Under the Pradhan Mantri MUDRA Yojana, a loan in the Kishore category falls in which range?
The Pradhan Mantri MUDRA Yojana was launched in April 2015 to refinance small business loans given by banks, non-banking finance companies and micro finance institutions to non-farm income generating activities.
Read the full explanation →The overall priority sector lending target for a domestic scheduled commercial bank is what proportion of its adjusted net bank credit?
A domestic scheduled commercial bank must lend forty per cent of its adjusted net bank credit, or of the credit equivalent of its off balance sheet exposure if that is higher, to the priority sector.
Read the full explanation →If the nominal rate of interest on a deposit is 7 per cent and inflation is 6 per cent, the real rate of interest is about
The real rate of interest is the nominal rate less the rate of inflation, so seven per cent minus six per cent leaves roughly one per cent.
Read the full explanation →Under the marginal standing facility, a bank borrows overnight from the Reserve Bank of India against which of the following?
The marginal standing facility lets a bank borrow overnight from the Reserve Bank by dipping into the government securities it holds for the statutory liquidity ratio, up to a prescribed share of its net demand and time liabilities.
Read the full explanation →A loan account of a bank is classified as a non-performing asset when interest or principal remains overdue for more than
Under the Reserve Bank's income recognition and asset classification norms, a term loan becomes a non-performing asset when interest or an instalment of principal stays overdue beyond ninety days, and a cash credit or overdraft account becomes one when it remains out of order for the same period.
Read the full explanation →Mortgage of immovable property in India is governed by which of the following Acts?
Section 58 of that Act defines a mortgage as the transfer of an interest in specific immovable property to secure a loan, and it names six kinds: simple mortgage, mortgage by conditional sale, usufructuary mortgage, English mortgage, mortgage by deposit of title deeds, which is also called an equitable mortgage…
Read the full explanation →In which of the following charges on movable property does the possession of the goods remain with the borrower?
In hypothecation a charge is created on movable property, such as a financed vehicle or the stock in a trader's shop, while the borrower keeps and uses the goods.
Read the full explanation →The base rate system introduced by the Reserve Bank of India in July 2010 replaced which of the following?
Under the BPLR system a bank announced a prime rate for its best customers and then lent to many borrowers below it, so the announced rate told a customer very little and the lending book was not transparent.
Read the full explanation →From which date did banks in India begin pricing new floating rate loans on the marginal cost of funds based lending rate, MCLR?
The Reserve Bank introduced the MCLR from that date so that the price of a loan would follow the marginal, that is the latest, cost of raising funds rather than the average cost of old deposits.
Read the full explanation →Which model of self help group is also known as the international model?
The South Asia Poverty Alleviation Programme model is called the international model of self help group formation because it was taken up with the support of the United Nations Development Programme and followed the same design across South Asian countries, beginning in India in the districts of Andhra Pradesh.
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