Which of the following is NOT a commercial bank?
- A.Canara Bank
- B.HDFC Bank
- C.NABARD
- D.Prathama Bank
Correct answer
Explanation
The correct answer is C, NABARD. The National Bank for Agriculture and Rural Development is a development financial institution set up in 1982. It refinances banks and cooperative institutions, plans rural credit and supervises cooperative banks and Regional Rural Banks, but it does not run branches to take deposits from the public, so it is not a commercial bank.
Option A, Canara Bank, founded in 1906 and nationalised in 1969, is a public sector commercial bank. Option B, HDFC Bank, licensed in the 1990s, is a private sector commercial bank. Option D, Prathama Bank, was the first Regional Rural Bank, opened at Moradabad on 2 October 1975, and Regional Rural Banks are counted among commercial banks even though they work in a limited area. The other development institutions that appear in such options are SIDBI, the EXIM Bank and the infrastructure financing institution created in 2021.
Read the full article: Types of Banks in India: Classification, Functions and MCQs
Practice Questions
View allWhat is the primary function of a commercial bank?
- A.Issuing currency notes and coins
- B.Conducting monetary policy
- C.Granting loans and accepting deposits
- D.Regulating the money supply
Show answer
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.
Read the full explanation →Which among the following is a public sector bank?
- A.Axis Bank
- B.ICICI Bank
- C.Bank of Baroda
- D.Yes Bank
Show answer
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.
Read the full explanation →SEWA (Self-Employed Women's Association) Bank, a cooperative bank in Gujarat, was launched in India in ______.
- A.1974
- B.1894
- C.1994
- D.1874
Show answer
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.
Read the full explanation →Which of the following functions of Reserve Bank of India are correct? I. Banker to Banks II. Currency Issuer
- A.Only I
- B.Neither I nor II
- C.Both I and II
- D.Only II
Show answer
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.
Read the full explanation →Scheduled banks in India are those banks which are included in which schedule of which Act?
- A.First Schedule of the Banking Regulation Act, 1949
- B.Second Schedule of the Reserve Bank of India Act, 1934
- C.Second Schedule of the Banking Regulation Act, 1949
- D.Seventh Schedule of the Constitution
Show answer
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.
Read the full explanation →