Banking and finance

Banking in India

  • First purely Indian bank is the Punjab National Bank (1894). A step towards social banking was taken with the nationalisation of 14 commercial banks on 19th July, 1969. Six more banks were Nationalised on 1980. Although there are 19 Nationalised bank of India. IDBI is consider only as Nationalised bank.
  • With the merger of bank of Rajasthan with the ICICI bank, the number of old private sector banks is now reduced, 14.
  • In 2017, the five associates bank were merged into SBI. Bharatiya Mahila Bank was also merged with SBI.

Indradhanush Scheme 2015

This is for the banking reforms in India. The 7 key reforms of indradhanush Mission include appointments de-stressing, capitalisation, empowerment, framework of accountability, governance reforms and bank board bureau.

15th Finance commission

  • The 15th finance commission was constituted in accordance with the Articles 270, 275 and 280 of the Indian constitution.
  • The first finance commission was headed by K C Neogi and the 15th finance commission is headed by N K Singh.

Financial institution

Reserve Bank of India 1949

SBI 1955

UTI and IDBI 1964

NABARD 1982

SIDBI 1990

The RBI and Credit Control Quantitative/General credit control

It is used to control the volume of credit and indirectly to control the inflationary and deflationary pressures. These are

  1. Cash Reserve Ratio
  2. Statutory Liquidity Ratio
  3. Repo Rate
  4. Reverse Repo Rate
  5. Bank Rate

Functions of the RBI

  • Monetary policy
  • Regulation and supervision of the banking and non-banking financial institutions, including credit information companies
  • Debt and cash management for centre and state government
  • Management of foreign exchange reserves. Foreign exchange management current and capital account management
  • Bankers banks
  • Banker to the centre and state governments
  • Oversight of the payment and settlement systems
  • Currency management
  • Development role
  • Research and statistics


Imperial Bank was constituted in the year

(a) 1955

(b) 1921

(c) 1930

(d) 1935
Answer


The accounting year of Reserve Bank of India runs from

(a) April to March

(b) July to June

(c) January to December

(d) August to July
Answer


National institute of Rural Development is located at

(a) New Delhi

(b) Mumbai

(c) Hyderabad

(d) Kanpur
Answer


Money supply is governed by the

(a) Planning commission

(b) Finance commission

(c) Reserve Bank of India

(d) Commercial Banks
Answer


Which of the following is not a type of cheque

(a) Crossed cheque

(b) Bank cheque

(c) Speed cheque

(d) Bearer cheque
Answer


The terms bull and bear are used in

(a) Planning commission

(b) Stock Exchange

(c) Sales Tax Department

(d) Income Tax Department
Answer


In which year first time ₹1 coin was made

(a) 1542

(b) 1601

(c) 1809

(d) 1757
Answer


Which of the following is the central Bank of India

(a) SBI

(b) RBI

(c) PNB

(d) Imperial Bank
Answer


Which of the following regulates the financial and banking system of the country

(a) RBI

(b) SEBI

(c) SBI

(d) CSO
Answer


The Monetary policy is formulated by

(a) Finance Ministry

(b) Reserve Bank

(c) Parliament

(d) state Bank of India
Answer


Which of the following bank is a commercial bank

(a) SBI

(b) Regional Rural Banks

(c) cooperative banks

(d) All of the above
Answer


The regulatory authority for capital markets in India is

(a) SEBI

(b) RBI

(c) SBI

(d) ALL of these
Answer


Minimum cash reserves fixed by law constitute

(a) a percentage of aggregate deposits of the bank

(b) a percentage of aggregate loans and advances

(c) a percentage of capitals and reserves of the bank

(d) None of the above
Answer


Unit trust of India (UTI) was established by

(a) IDBI

(b) SBI

(c) RBI

(d) Finance Ministry
Answer


UTI is now controlled by

(a) IDBI

(b) Finance Ministry

(c) RBI

(d) SBI
Answer


State Bank of India (SBI) came in to existence in

(a) 1948

(b) 1955

(c) 1935

(d) 1949
Answer


NABARD was established in

(a) 1982

(b) 1964

(c) 1980

(d) 1990
Answer


IDBI was established in

(a) 1964

(b) 1972

(c) 1982

(d) 1955
Answer


RBI was nationalised in

(a) 1949

(b) 1935

(c) 1969

(d) 1955
Answer


Which of the followingfollowing institutions does not provide loans directly to the farmers

(a) NABARD

(b) State Bank of India

(c) Regional Rural Bank

(d) primary Agricultural Credit Society
Answer


The apex institution in the area of rural finance is

(a) RBI

(b) SBI

(c) NABARD

(d) All of these
Answer


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