Banking Awareness Questions and Answers for IBPSPOs,IBPSClerks,SBI,IncomeTax,CSAT,RBI,TSPSC Exams

Technological Advancement in the recent times has given a new dimension to banks, mainly to which one of the following aspects?

New Age Financial Derivatives

Service Delivery Mechanism

Any Banking

Any type Banking

Multilevel Marketing

What happens when an economy is in recession?

GDP growth slows down

Unemployment rate rises

Bankruptcies rise

Both 1 & 2

All 1, 2 and 3

Which one of the following is a retail banking product?

Home loans

Working capital finance

Corporate term loans

Infrastructure financing

Export Credit

Which one of the following is NOT a ‘Money Market Instrument’?

Treasury Bills

Commercial Paper

Certificate of Deposit

Travelers Cheques

Credit Cards

The term ‘Smart Money’ refers to __

Foreign Currency

Internet Banking

US Dollars

Credit Cards

Travelers Cheques

A worldwide financial messaging network which exchanges messages between banks and financial institutions is known as






A money deposited at a bank that cannot be withdrawn for a preset fixed period of time is known as __

Term Deposit

Checking Account

Savings Bank Account

No Frill Account

Current Deposit

Which of the following functions are NOT being performed by the Reserve Bank of India?

Regulation of Banks in India

Regulation of Foreign Direct Investment in India

Foreign Currency Management in India

Control and Supervision of Money Supply

Currency Management in India

When a customer opens a Deposit account with the Bank, which one of the following is the status of the Bank?





None of these

What is the maximum balance amount that is eligible for earning interest in a normal saving bank account?

Rs. 1 lakh

Rs. 2 lakh

Rs. 3 lakh

Rs. 5 lakh

No limit

Which of the following is NOT a Negotiable Instrument?


Promissory Note

Bill of Exchange

Fixed Deposit Receipt

All of the above

With a view to facilitate payment of balance in deposit account to the person named by the depositor without any hassles in the event of death of the account holder, the following facility was introduced in bank accounts in our country.






” In relation to banking, what do understand by “”Ever-Greening of Account””?”

Full repayment of a loan ac before maturity Pre-payment

Full repayment of a loan ac exactly at maturity

Fresh Loan sanctioned during the tenure of account for enhancement limits

Adjusting the NPA/Sticky ac with fresh sanction of loans

Loans provided for new project new customers

Which of the following is NOT a type cheque?

Crossed cheque

Blank cheque

Speed cheque

Bearer cheque

Order cheque

Banks are considered as ‘fin intermediaries’. Which of the following activity correctly and comprehensively explains this role of banks?

Accepting deposits of money f

Granting loans to the weaker se of the society

Accepting money for remittance issuing bank drafts

Providing safe deposit services

Opening accounts and accepting deposits therein

When a Bank provides a loan for purchase of white goods, it is categorized as__


White Goods Loan

Consumer Durable Loan

Bridge Loan

Working Capital

As per Financial Inclusion drive one of the following Banks introduced Tiny Cards with Biometric identification. Which of the following is that Bank?

Central Bank of India

Oriental Bank of Commerce

Indian Bank

State Bank of India

Canara Bank

What is offshore banking?

It is a bank located in the sea

It is a bank located in SEZ

It is a bank located in a neighboring country

It is a bank located outside the country of residence of the depositor

Basically dealing in foreign exchange

Like Telephone/Mobile number portability, the Ministry of Finance/RBI is now also considering to provide bank account number portability to bank customers. Which of the following would it mean?

Any customer/account holder can withdraw cash from any other Bank through his/her own cheques drawn on other bank even without ATM

Any borrower can draw funds from his/her loan account from any other bank also

The account number of any account holder will remain the same even if he/she is getting his/her account transferred to another bank also

Bank customers would have the facility of mobile Banks to withdraw cash nearby his/her place

None of these

The period for Call Money is

10 to 15 days

1 to 14 Days

15 to 30 Days

One Month

7 days

Who regulates the money circulation in India?

State Bank of India

Reserve Bank of India


Commercial Banks

Finance Commission

Who will settle the customers of banks?

Reserve Bank of India

State Bank of India

Local Courts


Indian Banks Association

Which of the following is a foreign bank having branches in India?



Yes Bank

Syndicate Bank

Standard Chartered Bank

Accounts are allowed to operate by Cheques in respect of __

Both Savings Accounts and Fixed Deposit Accounts

Both Savings and Current Accounts

Both Savings and Loan Accounts

Both Savings bank accounts and Cash Accounts only

Both Current Account and Fixed Deposit Accounts

The Aadhaar Enabled Payment Systems (AEPS) is a bank-led model that facilitates banking facilities by allowing transactions at Point of Sale through the business correspondent (BC) using the Aadhaar authentication number. Aadhaar enabled basic types of banking transactions do not include __

Only A

Only B

Only C

Only A and B

None of these

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