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? ...

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 ...