MCQs on Indian Banking Structure
MCQs on Indian Banking Structure
Test your knowledge with 25 multiple choice questions on Indian Banking System covering types of banks, their functions, and RBI guidelines.
1. Which bank type is allowed to accept deposits but cannot lend?
a) Small Finance Banks
b) Payment Banks
c) NBFCs
d) Cooperative Banks
2. What is the maximum deposit limit in a Payment Bank?
a) ₹1 lakh
b) ₹2 lakh
c) ₹5 lakh
d) ₹50,000
3. Regional Rural Banks were established in which year?
a) 1969
b) 1980
c) 1975
d) 1991
4. Which of the following is NOT a function of commercial banks?
a) Accepting Deposits
b) Lending Loans
c) Manufacturing goods
d) Credit Creation
5. Who sponsors the Regional Rural Banks?
a) Private Sector Banks
b) Public Sector Banks
c) RBI
d) Foreign Banks
6. What is the main goal of Small Finance Banks?
a) Serve high net-worth individuals
b) Serve low-income groups and unorganized sectors
c) Handle foreign remittances
d) Issue government bonds
7. What does CRR stand for?
a) Cash Reserve Ratio
b) Capital Reserve Rate
c) Cash Rate Ratio
d) Credit Ratio Reserve
8. SBI is classified under which type of bank?
a) Private Sector Bank
b) Foreign Bank
c) Public Sector Bank
d) Cooperative Bank
9. Which act lists Scheduled Commercial Banks?
a) Banking Regulation Act, 1949
b) RBI Act, 1934
c) Companies Act, 1956
d) SARFAESI Act
10. The Jan Dhan Yojana mainly aims to:
a) Provide employment
b) Promote financial inclusion
c) Boost agriculture
d) Support digital startups
11. Which of the following is a function of banks?
a) Selling groceries
b) Providing loans
c) Building roads
d) Conducting elections
12. What is the full form of NBFC?
a) National Bank for Financial Cooperation
b) Non-Banking Federal Corporation
c) Non-Banking Financial Company
d) None of the above
13. Which banks are allowed to operate in only up to 3 districts?
a) Regional Rural Banks
b) Cooperative Banks
c) Local Area Banks
d) Payment Banks
14. Which is an example of a Private Sector Bank?
a) SBI
b) HDFC Bank
c) Punjab National Bank
d) Bank of India
15. What does SLR stand for in banking?
a) Statutory Liquidity Rate
b) Statutory Liquidity Ratio
c) Standard Lending Ratio
d) Scheduled Loan Reserve
16. Which of these is NOT a Scheduled Commercial Bank?
a) ICICI Bank
b) PACS
c) Canara Bank
d) Axis Bank
17. Cooperative banks operate under:
a) RBI only
b) SEBI
c) RBI and respective State Governments
d) Ministry of Finance only
18. What is the capital adequacy framework in India based on?
a) Basel I
b) Basel II
c) Basel III
d) RBI Circular 2020
19. The primary role of the RBI is to:
a) Issue insurance policies
b) Provide agricultural subsidies
c) Regulate the monetary system
d) Conduct stock market trading
20. Which of these banks is an example of a Foreign Bank?
a) ICICI Bank
b) HDFC Bank
c) SBI
d) Citibank
21. Urban Cooperative Banks are regulated by:
a) State Government
b) RBI and State Governments
c) NABARD
d) Ministry of Home Affairs
22. Who holds majority ownership in Public Sector Banks?
a) Private investors
b) RBI
c) Government of India
d) State governments
23. Which of the following cannot accept demand deposits?
a) Scheduled Commercial Banks
b) Cooperative Banks
c) NBFCs
d) Small Finance Banks
24. Primary Agricultural Credit Societies operate at:
a) State level
b) District level
c) Village level
d) Urban level
25. Priority Sector Lending target for SCBs is:
a) 10%
b) 20%
c) 40%
d) 60%
Tags: Indian Banking, Scheduled Banks, Cooperative Banks, NBFC, RBI Guidelines, Payment Banks, Small Finance Banks
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