The five associate banks of SBI and Bharatiya Mahila Bank were merged into the State Bank of India with effect from which date?
Correct answer B. 1 April 2017
Topic / 50 questions
Banking Awareness MCQs
Banking Awareness MCQs are multiple-choice questions on India's banking structure, financial institutions, rural credit, deposit insurance, bad loans and financial inclusion. They are central to IBPS, SBI, RBI and RRB exam preparation, and every question on MCQs360 shows its correct answer instantly.
Debt Recovery Tribunals were set up under an Act passed in which year?
Correct answer A. 1993
Which statute governs Credit Information Companies such as CIBIL in India?
Correct answer C. Credit Information Companies (Regulation) Act, 2005
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The RBI Integrated Ombudsman Scheme was launched in which year?
Correct answer D. 2021
Which Narasimham Committee report of 1991 led to the first wave of banking sector reforms in India?
Correct answer A. Committee on the Financial System
In the 2020 bank consolidation, Oriental Bank of Commerce and United Bank of India were merged into which bank?
Correct answer A. Punjab National Bank
In 2020, Syndicate Bank was amalgamated into which public sector bank?
Correct answer B. Canara Bank
Vijaya Bank and Dena Bank were merged into which bank in 2019?
Correct answer B. Bank of Baroda
Under the Pradhan Mantri MUDRA Yojana, launched in 2015, the ‘Shishu’ category covers loans up to what amount?
Correct answer D. Rs 50,000
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Which organisation operates UPI, IMPS and RuPay in India?
Correct answer D. National Payments Corporation of India
NEFT became available round the clock (24×7) from which month?
Correct answer D. December 2019
In which year was the Unified Payments Interface (UPI) launched?
Correct answer B. 2016
NPCI was incorporated in 2008 as what kind of company?
Correct answer C. A not-for-profit company
Which organisation provides deposit insurance to bank depositors in India?
Correct answer A. Deposit Insurance and Credit Guarantee Corporation
With effect from 4 February 2020, the DICGC deposit insurance cover was raised to what amount per depositor per bank?
Correct answer A. Rs 5 lakh
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The Basel Committee on Banking Supervision is hosted by which institution?
Correct answer B. Bank for International Settlements
Which of the following is one of the three pillars of Basel II?
Correct answer D. Market discipline
The Basel III framework was introduced mainly in response to which event?
Correct answer C. The global financial crisis of 2007-09
A bank in India is called a ‘scheduled bank’ when it is included in which schedule?
Correct answer A. Second Schedule of the RBI Act, 1934
Regional Rural Banks were first set up in India in which year?
Correct answer B. 1975
About Banking Awareness MCQs
This topic covers the structure of Indian banking: commercial banks, regional rural banks, small finance and payments banks, the three-tier cooperative credit system and development finance institutions such as NABARD, SIDBI and the EXIM Bank. Questions ask when these were set up, on whose recommendation and where they are based, along with major nationalisations and mergers, such as the 1969 and 1980 nationalisations and the 2019 mergers.
Other questions deal with asset quality and resolution, including non-performing assets, the Insolvency and Bankruptcy Code and its regulator, deposit insurance through the DICGC, priority sector lending, the Lead Bank Scheme, and financial inclusion schemes such as basic savings accounts and the MUDRA Yojana. Questions in this area often ask about the key features or eligibility rules of a scheme rather than its name alone.
Key facts to remember
- NABARD was set up in 1982 on the recommendation of the CRAFICARD committee chaired by B. Sivaraman.
- Regional Rural Banks were first set up in 1975.
- The State Bank of India was created in 1955 on the recommendation of the All India Rural Credit Survey Committee.
- The Insolvency and Bankruptcy Code was enacted in 2016, and the Insolvency and Bankruptcy Board of India regulates insolvency professionals.
- Deposit insurance in India is provided by the Deposit Insurance and Credit Guarantee Corporation, a subsidiary of the RBI.
- Primary Agricultural Credit Societies form the base of the three-tier short-term cooperative credit structure.
Exams that include Banking Awareness MCQs
India
- IBPS PO
- IBPS Clerk
- SBI PO
- RBI Grade B
- RRB PO
- RRB Clerk
How to prepare for Banking Awareness MCQs
- Make a chart of financial institutions with their year of founding, headquarters and the committee that recommended them.
- Learn bank mergers as pairs, noting which bank absorbed which and the year it took effect.
- Understand definitions precisely, such as the 90-day rule for non-performing assets and the categories of substandard, doubtful and loss assets.
- Check limits and lending targets against the latest RBI circulars or a current affairs source, as these are revised from time to time.
Frequently asked questions
Which exams ask Banking Awareness MCQs?
Banking Awareness is part of the general awareness section of IBPS PO, IBPS Clerk, SBI PO, SBI Clerk, RBI Grade B, RBI Assistant and the IBPS RRB exams. It is also useful for insurance and cooperative bank recruitment tests.
What is a non-performing asset?
A loan or advance becomes a non-performing asset when interest or instalments of principal remain overdue for more than 90 days. NPAs are further classified as substandard, doubtful or loss assets depending on how long they have stayed non-performing.
What does NABARD do?
NABARD, the National Bank for Agriculture and Rural Development, is the apex development finance institution for agriculture and rural areas. It refinances rural lending by cooperative banks and regional rural banks, supports rural infrastructure and supervises cooperative banks and RRBs.
Last reviewed October 2026