Top 50 Important Banking Awareness Questions for IBPS RRB 2025

Banking awareness is a crucial section in IBPS RRB exams, as it tests candidates’ knowledge of banking terms, financial policies, and the current banking environment. Being well-prepared in this section not only helps in scoring good marks but also builds a strong foundation for interviews and other competitive exams. To help aspirants streamline their preparation, we have curated a list of the Top 50 Banking Awareness Questions that are highly relevant for the IBPS RRB 2025 exam.

Importance of Banking Awareness for IBPS RRB

Banking Awareness plays a crucial role in IBPS RRB exams, as it evaluates a candidate’s understanding of the financial and banking sector. Questions in this section are designed to assess:

• Knowledge of the Indian Banking System: Understanding the structure, functions, and operations of banks in India.
• Recent Developments in Banking and Finance: Awareness of current trends, updates, and changes in the financial sector.
• Familiarity with Financial Schemes and Policies: Insight into government and RBI-backed schemes, financial inclusion initiatives, and policies affecting banking operations.
• Understanding of RBI Regulations and Functions: Comprehension of the Reserve Bank of India’s role, monetary policies, and regulatory frameworks.

Top 50 Important Banking Awareness Questions for IBPS RRB 2025

Here is a shortlist of 50 of the most important and current questions for banking exams, focusing on recent banking, economic, and financial news, government appointments, RBI guidelines, and national milestones. These cover the areas most frequently asked about in banking prelims and mains papers, based on the latest October-November 2025 updates and high-yield topics from your content file.​

• What is the minimum paid-up capital and reserves required for a bank to be included in the Second Schedule of the RBI Act, 1934? ₹5 lakh
• What is the primary legislation that governs the functioning of commercial banks in India? Banking Regulation Act, 1949
• Which is the largest public sector bank in India? State Bank of India (SBI)
• What does NPA stand for in the context of banking? Non-Performing Asset
• An asset is generally classified as an NPA if the principal or interest payment remains overdue for a period of more than: 90 days
• What is the full form of CASA? Current Account Savings Account
• Banks that are prohibited from lending and can only accept deposits and handle remittances are called: Payments Banks
• What does DICGC provide insurance cover for? Bank deposits (up to ₹5 lakh)
• The selling of insurance products and services by a bank is known as: Bancassurance
• Which type of bank account allows the depositor to deposit and withdraw funds any number of times without major restrictions? Current Account
• The Reserve Bank of India (RBI) was established on the recommendation of which commission? Hilton Young Commission
• What is the primary objective of the Monetary Policy Committee (MPC) of the RBI? To maintain price stability/control inflation
• What is the full form of Repo Rate? Repurchase Option Rate
• The rate at which the RBI borrows money from commercial banks is called: Reverse Repo Rate
• What is the full form of SLR? Statutory Liquidity Ratio
• The RBI uses Open Market Operations (OMO), which involve the buying and selling of: Government Securities (G-Secs)
• Which monetary policy tool requires commercial banks to keep a certain percentage of their NDTL as a cash balance with the RBI? Cash Reserve Ratio (CRR)
• What does the RBI act as when it provides funding to commercial banks when all other resources are exhausted? Lender of Last Resort
• Which act gives the statutory basis for the operation of the RBI? Reserve Bank of India Act, 1934
• The maximum penal interest rate under the RBI’s Prompt Corrective Action (PCA) Framework is applied to which banks? Banks with weak financial metrics
• What is the full form of UPI? Unified Payments Interface
• Which digital payment system, operated by the NPCI, allows a customer to send or receive money 24×7 using only a mobile number and UPI PIN? UPI
• T+1 Settlement in the stock market refers to the settlement of trades within what time period after the trade date? One working day
• The term “Taper Tantrum” in financial markets is primarily related to which event? Withdrawal/reduction of Quantitative Easing (QE)
• Which international banking framework introduced stricter capital and liquidity standards for banks? Basel III Norms
• What is the common name for banks that are considered ‘too big to fail’? Domestic Systemically Important Banks (D-SIBs)
• Which term is used for the integration of technology into financial services? FinTech
• The process of converting assets into marketable securities for the purpose of raising cash is called: Securitisation
• In banking, what is the full form of ALM? Asset-Liability Management
• Which entity, besides the RBI, governs the regulation and development of the stock market and Mutual Funds in India? SEBI
• Pradhan Mantri Jan Dhan Yojana (PMJDY) is a national mission for: Financial Inclusion
• What is the maximum loan amount provided under the ‘Shishu’ category of the Pradhan Mantri Mudra Yojana (PMMY)? ₹50,000
• The social security scheme Pradhan Mantri Suraksha Bima Yojana (PMSBY) provides insurance cover for which risk? Accidental Death and Disability
• Atal Pension Yojana (APY) provides a minimum guaranteed pension starting at what age? 60 years
• Which small savings scheme is exclusively for the girl child? Sukanya Samriddhi Yojana (SSY)
• The scheme that encourages banks to provide loans to at least one SC/ST borrower and at least one woman borrower per bank branch is: Stand Up India Scheme
• Which initiative, launched in 1969, aims at all-round development of districts by making banks the ‘Lead Bank’ of a district? Lead Bank Scheme
• The government’s policy of using bank accounts to transfer subsidies directly to beneficiaries is called: Direct Benefit Transfer (DBT)
• What is the full form of BC in the context of financial inclusion? Business Correspondent
• What is the overall domestic target for Commercial Banks under Priority Sector Lending (PSL)? 40%
• What is the maximum transaction limit for NEFT? No upper limit
• What is the minimum amount stipulated for a single transaction through the RTGS system? ₹2,00,000
• What does the ‘D’ in NDTL stand for? Demand
• The term SWIFT is primarily associated with: International Financial Messaging
• What is the full form of KYC? Know Your Customer
• The code that uniquely identifies a bank branch in India for electronic funds transfer purposes is: IFSC (Indian Financial System Code)
• A cheque that is presented for payment after a period of three months from the date written on it is called a: Stale Cheque
• What does CAR stand for in banking, which measures a bank’s ability to absorb losses? Capital Adequacy Ratio
• The market where money is lent and borrowed for a short period, typically one day, is known as: Call Money Market
• Who is the current Governor of the Reserve Bank of India (as of late 2024)? Shaktikanta Das

Tips to Prepare RRB Banking Awareness

Preparing for the Banking Awareness section of IBPS RRB requires both conceptual understanding and staying updated with current developments. Here are some effective tips:

• Understand the Syllabus Thoroughly: Focus on topics like the Indian Banking System, RBI functions, types of banks, banking terms, financial schemes, and recent banking updates.
• Read Daily Banking and Financial News: Follow newspapers like The Economic Times, Business Standard, and RBI updates. Keep track of new schemes, policies, and important circulars.
• Refer to Standard Banking Awareness Books: Books like Banking Awareness by Arihant or Objective Banking Awareness by RPH cover basics and practice questions.
• Learn Key Financial Terms and Abbreviations :Terms like CRR, SLR, repo rate, reverse repo, NPA, etc., are frequently asked.
• Revise Government and RBI Schemes: Be familiar with schemes like PMJDY, Mudra Yojana, Stand Up India, and their objectives.
• Practice Previous Year Questions: Analyze past IBPS RRB papers to understand the pattern and frequently asked topics.
• Make Short Notes: Create concise notes for quick revision of important terms, schemes, and recent developments.
• Use Mock Tests and Quizzes: Regular practice through mock tests helps improve speed, accuracy, and confidence.