Banking Awareness Quiz: We have created many quizzes on Banking Awareness that are very important for banking and insurance exams. We provide you Banking Awareness questions and answers based on the latest pattern for upcoming competitive exams like IBPS, SBI, RRB, GATE. Do you ever think of a magical quiz which is a superb mantra for getting success in any competitive field? This page provides that Quiz on Banking Awareness which is very helpful for the individuals to crack any exams effortlessly and easily.

Banking Awareness

Q.1. The components of Tier I capital of a banking company include:

a) capital reserve representing surplus arising out of sale proceeds of assets
b) paid-up capital, statutory reserves and other disclosed free reserves, if any
c) both (1) and (2)
d) either (1) and (2)
e) None of the above

Q.2. A mortgage involves:

a) transfer of ownership
b) transfer of possession
c) transfer of interest
d) All of the above
e) None of the above

Q.3. Bank holidays under Section 25 of the Negotiable Instruments Act, 1881 are declared by:

a) State Government for the respective State
b) Banking Operations Department
c) Central Government
d) RBI
e) None of the above

Q.4. An agricultural advance given for allied activity, viz., poultry, is classified as N.P.A. if:

a) interest and installments remain unpaid beyond 90 days
b) interest and installments remain due for 2 crop seasons
c) interest remains outstanding for 2 and a half years
d) none of the above
e) None of the above

Q.5. Banking Regulation Act, 1949, does not at all apply to

a) nationalized banks
b) State bank of India and its subsidiaries
c) foreign banks having branches in India
d) Primary agricultural credit societies and co-operative land mortgage banks
e) None of the above

Q.6. Which of the following is the first Universal Bank established in India? 

a) IDBI Bank Ltd. 
b) ICICI Bank ltd.
c) Reserve bank of India 
d) NABARD 
e) HDFC Bank Ltd.

Q.7. Local Area Banks 

a) are licensed under the Banking Regulation Act, 1956 
b) are eligible for inclusion in the Second Schedule to the Reserve bank of India Act, 1934 
c) Have minimum paid up capital of Rs. 5 crore with promoters’ contribution being at least Rs. 2 crore 
d) all of the above                 
e) none of the above 

Q.8. The promoters of Local Area Banks may comprise 

a) individuals 
b) corporate entities 
c) trusts and societies 
d) accepts deposits from public 
e) all of the above 

Q.9. The regional Rural Banks are sponsored by

a) Unit Trust of India               
b) Reserve Bank of India 
c) Life Insurance Corporation of India      
d) NABARD 
e) Any Scheduled Commercial bank 

Q.10. RRBs are permitted to undertake corporate agency business, without risk participation, for distribution of all types of insurance products, including health and animal insurance subject to the condition that 

a) The bank should comply with the Insurance Regulatory and Development Authority (IRDA) regulations for acting as composite corporate agent’. 
b) The bank should not adopt any restrictive practice of forcing its customers to go in only for a particular insurance company in respect of assets financed by the bank 
c) The risks, if any, involved in insurance agency should not get transferred to the business of the bank 
d) none of the above 
e) all of the above

Banking Awareness Answers

Q.1 c) both (1) and (2)
Q.2 a) transfer of ownership
Q.3 d) RBI
Q.4 b) interest and installments remain due for 2 crop seasons
Q.5 d) Primary agricultural credit societies and co-operative land mortgage banks
Q.6 b) ICICI Bank ltd.
Q.7 d) all of the above                 
Q.8 e) all of the above 
Q.9 e) Any Scheduled Commercial bank 
Q.10 e) all of the above

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