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Banking & Financial Awareness Quiz: Types of Banks in India

  • 10 questions
  • 10 minutes
  • Difficulty: Medium
Useful for:SSCSSC CGLSSC MTSBankingIBPSSBIRBINABARDRRB NTPC
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About this quiz

This Banking & Financial Awareness quiz on Types of Banks in India puts 10 multiple-choice questions to you, the verified MCQs published with GK24's note on the topic, 4 of them asked in real previous-year papers. Every question carries a full explanation of why the correct option is right and why the other options are wrong, so you learn the fact behind the answer rather than the letter. Attempt it right after reading the note, keep to the timer, and use the explanations at the end to mark what needs another look. Sit it again before the exam as a quick revision of the topic.

Questions in this quiz

10 questions with answers and explanations

Q1.Banking & Financial AwarenessAsked in: SSC MTS · 12 Sept 2023, Shift 1Easy

What is the primary function of a commercial bank?

  1. A.Issuing currency notes and coins
  2. B.Conducting monetary policy
  3. C.Granting loans and accepting deposits
  4. D.Regulating the money supply
Show answer
Correct answer: C. Granting loans and accepting deposits

A commercial bank exists to gather savings from those who have a surplus and lend them to those who need funds, and it earns from the gap between the interest it pays depositors and the interest it charges borrowers.

Q2.Banking & Financial AwarenessAsked in: SSC MTS · 19 May 2023, Shift 1Easy

Which among the following is a public sector bank?

  1. A.Axis Bank
  2. B.ICICI Bank
  3. C.Bank of Baroda
  4. D.Yes Bank
Show answer
Correct answer: C. Bank of Baroda

It was founded in 1908 by Maharaja Sayajirao Gaekwad III, nationalised in the first round of July 1969, and the Government of India still holds the majority of its shares, which is what makes a bank a public sector bank.

Q3.Banking & Financial AwarenessAsked in: SSC GD Constable · 13 Feb 2023, Shift 4Hard

SEWA (Self-Employed Women's Association) Bank, a cooperative bank in Gujarat, was launched in India in ______.

  1. A.1974
  2. B.1894
  3. C.1994
  4. D.1874
Show answer
Correct answer: A. 1974

Women of the Self-Employed Women's Association at Ahmedabad, who worked as vendors, headloaders and home-based workers, pooled their own share capital and registered a cooperative bank of their own in 1974 because ordinary banks would not deal with borrowers who had no collateral and no paperwork.

Q4.Banking & Financial AwarenessAsked in: Delhi · 6 Sept 2021, Shift 1Easy

Which of the following functions of Reserve Bank of India are correct? I. Banker to Banks II. Currency Issuer

  1. A.Only I
  2. B.Neither I nor II
  3. C.Both I and II
  4. D.Only II
Show answer
Correct answer: C. Both I and II

The Reserve Bank is banker to banks: every scheduled bank keeps an account with it, holds its cash reserve ratio there, settles payments with other banks through those accounts and can borrow from it when short of funds.

Q5.Banking & Financial AwarenessMedium

Scheduled banks in India are those banks which are included in which schedule of which Act?

  1. A.First Schedule of the Banking Regulation Act, 1949
  2. B.Second Schedule of the Reserve Bank of India Act, 1934
  3. C.Second Schedule of the Banking Regulation Act, 1949
  4. D.Seventh Schedule of the Constitution
Show answer
Correct answer: B. Second Schedule of the Reserve Bank of India Act, 1934

A bank is placed in that Schedule once it has the prescribed paid-up capital and reserves and satisfies the Reserve Bank that its affairs are not conducted in a manner harmful to depositors.

Q6.Banking & Financial AwarenessMedium

Which of the following is a payments bank NOT permitted to do?

  1. A.Accept demand deposits up to a prescribed ceiling
  2. B.Issue debit cards
  3. C.Grant loans and issue credit cards
  4. D.Remit money and make payments
Show answer
Correct answer: C. Grant loans and issue credit cards

A payments bank is a differentiated bank licensed on the lines suggested by the Nachiket Mor Committee to carry payments and small savings to people the branch network had not reached.

Q7.Banking & Financial AwarenessMedium

What is the shareholding pattern of a Regional Rural Bank in India?

  1. A.Central Government 50 per cent, sponsor bank 35 per cent, State Government 15 per cent
  2. B.Central Government 35 per cent, sponsor bank 50 per cent, State Government 15 per cent
  3. C.Central Government 50 per cent, State Government 35 per cent, sponsor bank 15 per cent
  4. D.NABARD 50 per cent, sponsor bank 35 per cent, State Government 15 per cent
Show answer
Correct answer: A. Central Government 50 per cent, sponsor bank 35 per cent, State Government 15 per cent

Under the Regional Rural Banks Act, 1976 the issued capital of an RRB is shared in the proportion of 50 per cent by the Central Government, 35 per cent by the sponsor commercial bank and 15 per cent by the State Government concerned.

Q8.Banking & Financial AwarenessMedium

In the three-tier structure of short-term rural cooperative credit, which institution works at the village level?

  1. A.State Cooperative Bank
  2. B.District Central Cooperative Bank
  3. C.Primary Agricultural Credit Society
  4. D.Regional Rural Bank
Show answer
Correct answer: C. Primary Agricultural Credit Society

Short-term rural cooperative credit is built in three tiers: the State Cooperative Bank at the apex of the state, the District Central Cooperative Bank at the district level and the Primary Agricultural Credit Society in the village, where the farmer actually borrows.

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