Banking Awareness Questions For NICL AO Mains Exam 2017

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Just a few days are left for NICL AO Exam. It is time to pace up your preparation of Banking Awareness for NICL AO Mains Exam. These Banking questions will also help you in preparing for other upcoming banking recruitment examination.

Q1. Who is the first Governor of RBI? 
(a) C.D.Deshmukh
(b) James Braid Taylor 
(c) Osborne Smith
(d) Raghuram Rajan
(e) None of the given options is true

S1. Ans.(c)
Sol. Sir Osborne Smith was the first Governor of the Reserve Bank. A professional banker, he served for over 20 years with the Bank of New South Wales and 10 years with the Commonwealth Bank of Australia before coming to India in 1926 as a Managing Governor of the Imperial Bank of India. He held from 01st April 1935 to 30th June 1937.

Q2. Scheduled Banks of India are those banks, which are? 
(a) Included in First Schedule of RBI Act, 1934 
(b) Not included in First Schedule of RBI Act, 1934 
(c) Included in Second Schedule of RBI Act, 1934 
(d) Not included in Second Schedule of RBI Act, 1934 
(e) None of the given options is true

S2. Ans.(c)
Sol. The scheduled commercial banks are those banks which are included in the second schedule of RBI Ac  1934. Scheduled Commercial Banks are grouped under following categories:
1. State Bank of India
2. Nationalised Banks
3. Foreign Banks
4. Regional Rural Banks
5. Other Scheduled Commercial Banks

Q3. Which of the following banks is not merged with SBI in April 2017? 
(a) State Bank of Bikaner & Jaipur 
(b) State Bank of Travancore 
(c) State Bank of Mysore 
(d) Axis Bank
(e) None of the given options is true

S3. Ans.(d)
Sol. Axis Bank Ltd is the third largest of the private-sector banks in India and it is not merged with SBI in April 2017.

Q4. Which of the following bank is not a private sector bank in India? 
(a) Federal Bank 
(b) Yes Bank 
(c) IndusInd Bank 
(d) UCO Bank
(e) None of the given options is true

S4. Ans.(d)
Sol. Founded in 1943, UCO Bank is a commercial bank and a Government of India Undertaking.

Q5. Which private sector bank is recently merged with Kotak Mahindra Bank (KMB)? 
(a) ING Vysya Bank
(b) Karur Vysya Bank 
(c) Lakshmi Vilas Bank 
(d) Jammu and Kashmir Bank
(e) None of the given options is true

S5. Ans.(a)
Sol. ING Vysya Bank has successfully merged with Kotak Bank with effect from April 1, 2015, and will bear the name Kotak Mahindra Bank.

Q6. IBA stands for-
(a) Indian Banks' Allocation 
(b) Indian Banks' Association
(c) Institute Banks' Association 
(d) Indian Banks' Assembly
(e) Indian Billing Association 

S6. Ans.(b)
Sol. Indian Banks' Association (IBA) set up in 1946 with 22 members to discuss issues of common interests. Over the years, IBA emerged as the Voice of Indian Banking Industry.

Q7. What is the present Repo Rate?
(a) 7.00%
(b) 6.25%
(c) 6.50%
(d) 6.75%
(e) None of the given options is true

S7. Ans.(b)
Sol. present Repo Rate is 6.25%.

Q8. Which among the following rates is not the policy rate of RBI?
(a) Repo Rate
(b) Reverse Repo Rate
(c) Bank Rate
(d) Marginal Standing Facility Rate
(e) Cash Reserve Ratio

S8. Ans.(e)
Sol. Cash Reserve Ratio is Reserve ratio of RBI.

Q9. The Banking Ombudsman is a senior official appointed by..............?
(a) Indian Government
(b) President of India
(c) Chief Justice of India
(d) Reserve Bank of India
(e) Finance Ministry

S9. Ans.(d)
Sol. The Banking Ombudsman is a senior official appointed by the Reserve Bank of India to redress customer complaints against deficiency in certain banking services.

Q10. As on date, there are _________ Banking Ombudsman centre located in India.
(a) 20
(b) 19
(c) 18
(d) 17
(e) 16

S10. Ans.(a)
Sol. As on date, there are 20 Banking Ombudsman centre located in India. These are-
1. Ahmedabad, Gujarat
2. Bengaluru, Karnataka
3. Bhopal, Madhya Pradesh
4. Bhubaneswar, Odisha
5. Chandigarh
6. Chennai, Tamil Nadu
7. Guwahati, Assam
8. Hyderabad, Andhra Pradesh
9.  Jaipur, Rajasthan
10. Kanpur, Uttar Pradesh
11. Kolkata, West Bengal
12. Mumbai, Maharashtra
13. New Delhi (I)
14. New Delhi (II)
15. Patna, Bihar
16. Thiruvananthapuram, Kerala
17. Dehradun, Uttarakhand
18. Ranchi, Jharkhand
19. Jammu, Jammu and Kashmir
20. Raipur, Chhattisgarh

Q11. __________ An asset, including a leased asset, becomes non­ performing when it ceases to generate income for the bank.
(a) NPA
(b) KCC
(c) NPV
(d) GDP
(e) GNP

S11. Ans.(a)
Sol. Non ­performing Assets (NPA) is an asset, including a leased asset, becomes non­ performing when it ceases to generate income for the bank.

Q12. NPA stands for- 
(a) National ­performing Assets 
(b) New ­performing Assets 
(c) Non ­production Assets 
(d) Non ­performing Assembly
(e) Non ­performing Assets

S12. Ans.(e)
Sol. NPA stands for Non ­performing Assets.

Q13. MUDRA is a financial institution has been set up by Government of India for development and refinancing micro-units’ enterprises. What is the meaning of "A" in MUDRA?
(a) Agency
(b) Association
(c) Assembly
(d) Agent
(e) Alert

S13. Ans.(a)
Sol. MUDRA, which stands for Micro Units Development & Refinance Agency Ltd, is a financial institution being set up by Government of India for development and refinancing micro units’ enterprises.

Q14. MUDRA stands for- 
(a) Micro Units Development & Refinance Agent
(b) Medium Units Development & Refinance Association
(c) Micro Units Department & Refinance Agency 
(d) Micro Units Development & Refinance Agency 
(e) Micro Unique Development & Refinance Assembly

S14. Ans.(d)
Sol. MUDRA, which stands for Micro-Units Development & Refinance Agency Ltd, is a financial institution being set up by Government of India for development and refinancing micro-units’ enterprises. It was announced by the Hon’ble Finance Minister while presenting the Union Budget for FY 2016. The purpose of MUDRA is to provide funding to the non-corporate small business sector through various Last Mile Financial Institutions like Banks, NBFCs and MFIs.

Q15. India was one of the first in Asia to recognise the effectiveness of the EPZ model in promoting exports. EPZ stands for-
(a) Export Point Zone
(b) External Processing Zone
(c) Export Production Zone
(d) Export Processing Zone
(e) Export Processing Zonal

S15. Ans.(d)
Sol. India was one of the first in Asia to recognise the effectiveness of the Export Processing Zone (EPZ) model in promoting exports, with Asia's first EPZ set up in Kandla, Gujarat in 1965.

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