Bank Theory

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? ...

Microfinance Institutions and NBFCs - Descriptive Notes Microfinance Institutions (MFIs) Evolution of Microfinance in India Microfinance in India began as an informal sector practice and gained structure with the NABARD-supported SHG-Bank linkage programme in the early 1990s. It aimed at providing financial services to low-income groups, particularly women. Grameen Bank Model Inspired by the success in Bangladesh, this model relies on group lending with peer pressure to ensure repayment. It emphasizes trust and social collateral. Delivery of Microfinance Self-Help Groups (SHGs) Joint Liability Groups (JLGs) MFIs including NBFC-MFIs SHG-Bank Linkage Programme Launched by NABARD in 1992, this program links informal groups of micro-entrepreneurs to banks for credit support. Over 1 crore SHGs have been linked so far. Joint Liability Groups (JLGs) A group-based model of lending for agriculture and allied activities. Ea...

Indian Banking Structure Introduction The Indian banking system is structured in a multi-layered way to cater to the diverse needs of the economy. It plays a crucial role in financial intermediation, economic growth, and development. Functions of Banking Accepting Deposits (Savings, Current, Fixed) Providing Loans and Advances Credit Creation Payment and Settlement Services Agency Functions (e.g., collection of cheques, insurance) Development of Banking in India Banking in India has evolved significantly through nationalization (1969, 1980), liberalization (post-1991), digitalization, and financial inclusion. Initiatives like Jan Dhan Yojana and UPI have transformed access to banking services. Scheduled Commercial Banks (SCBs) SCBs are listed under the Second Schedule of the RBI Act, 1934. They maintain reserves with RBI and comply with its ...