Banking & General Financial Awareness Multiple Choice Questions (MCQs) and Answers with explanation for All Banking Exams of 2020-2021 such as IBPS Bank PO, IBPS Bank Clerical, RRB PO and Clerical, SBI PO and SBI Clerical, IBPS Recruitments, RBI Grade B and RBI Banking Examinations.
11. Which was the first bank to introduce ATM in India?
[A] IDBI
[B] UTI
[C] ICICI
[D] HSBC
Show Answer
Correct Answer: D [HSBC]
Notes:
The HSBC i.e. Hongkong and Shanghai Banking Corporation was the first bank to introduce the ATM in India way back in 1987.
12. What is the banking, where all banking operations are online, known as?
[A] Virtual Banking
[B] Retail Banking
[C] Mixed Banking
[D] Social Banking
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Correct Answer: A [Virtual Banking]
Notes:
Virtual banking is performing all banking operations online. This has served as a great revolution in banking market as banks have to continuously struggle for perfection to live up to competition and stay ahead of it.
13. What is the Banking combining banking and consultancy services called as?
[A] Unit Banking
[B] Merchant Banking
[C] Narrow Banking
[D] Wholesale Banking
Show Answer
Correct Answer: B [Merchant Banking]
Notes:
Merchant banking is a combination of banking and consultancy services. It provides consultancy to its clients for financial, marketing, managerial and legal matters.
14. What can be the minimum initial contribution to the paid-up equity capital of small finance banks?
[A] 25%
[B] 40%
[C] 75%
[D] 50%
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Correct Answer: B [40%]
Notes:
The promoter’s minimum initial contribution to the paid-up equity capital of such small finance bank shall at least be 40 per cent. In cases where the initial shareholding by promoter in the bank is in excess of 40 per cent, it should be brought down to 40 per cent within a period of five years.
15. Which organisation developed BHIM Application?
[A] SBI
[B] RBI
[C] NPCI
[D] SEBI
Show Answer
Correct Answer: C [NPCI]
Notes:
The BHIM mobile app was developed by the National Payments Corporation of India (NPCI). It is based on the Unified Payments Interface (UPI).
16. How is pension calculated?
[A] 50% of emoluments (last pay) or average emoluments, whichever is more beneficial to the retiring Govt.
[B] 70% of emoluments (last pay) or average emoluments, whichever is more beneficial to the retiring
[C] 20% of emoluments (last pay) or average emoluments, whichever is more beneficial to the retiring Govt.
[D] None of the above
Show Answer
Correct Answer: A [50% of emoluments (last pay) or average emoluments, whichever is more beneficial to the retiring Govt.]
Notes:
The amount of pension you receive is determined by years of service, age in which you elect to start collecting, and usually the average annual income over your last several years of service.
17. Financial inclusion means which of the following?
[A] retail banking
[B] bringing all poor people under banking net
[C] financial statements
[D] wholesale banking
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Correct Answer: B [bringing all poor people under banking net]
Notes:
Financial inclusion aims to bring in digital financial solutions for the economically underprivileged people of the nation. It also intends to bring in mobile banking or financial services in order to reach the poorest people living in extremely remote areas of the country.
18. Who among the following is a banking corresponding agent?
[A] An authorized representative of bank who offer banking services in unbanked areas
[B] Any person who offer banking services in unbanked areas
[C] An authorized representative of bank who makes profits for banks
[D] None of the above
Show Answer
Correct Answer: A [An authorized representative of bank who offer banking services in unbanked areas]
Notes:
Business Correspondents are retail agents engaged by banks for providing banking services at locations other than a bank branch/ATM. BCs enable a bank to provide its limited range of banking services at low cost.
19. Which of the following relates to the notice of protest under section 102 of the Negotiable Instruments Act, 1881?
[A] may be given by the notary public who makes the protest
[B] must always be given by the notary public who makes the protest
[C] must be given by the holder
[D] none of the above
Show Answer
Correct Answer: A [may be given by the notary public who makes the protest]
Notes:
When a promissory note or bill of exchange is required by law to be protested, notice of such protest must be given instead of notice of dishonour, in the same manner and subject to the same conditions; but the notice may be given by the notary public who makes the protest.
20. Which committee mooted the idea of payments banks?
[A] Bimal Jalan Committee
[B] Nachiket Mor Committee
[C] P J Nayak Committee
[D] YV Reddy Committee
Show Answer
Correct Answer: B [Nachiket Mor Committee]
Notes:
he Nachiket Mor committee mooted the idea of payments banks in 2013.
