Basic Banking Awareness 100 MCQs

by Mr. DJ

If you ally craving such a referred banking awareness mcq book that will have the … Basic/Banking awareness is a part 100 random MCQs
50.What was the objective of Y H Malegam committee set up by RBI?

[A] Review of Poverty Line
[B] Licensing of Small Finance Banks
[C] Monitoring of bad loans
[D] None of the above


Correct Answer: C [Monitoring of bad loans]

Reserve Bank of India (RBI) had constituted an expert committee n 2018 to look into the entire gamut of issues relating to classification of bad loans, effectiveness of audits and rising incidents of frauds. The committee was headed by Y H Malegam.

51.What do we call a loan which remains NPA for a period less than or equal to 12 months?

[A] Doubtful asset
[B] Sub-standard Asset
[C] Loss
[D] None of the above


Correct Answer: B [Sub-standard Asset]

If the loan remains under Special Mention Account for a period less than or equal to 12 months, it is termed as Sub-standard Asset.

52.What does C in BBPCU stand for?

[A] Central
[B] Console
[C] Centralised
[D] Collection


Correct Answer: A [Central]

BBPCU stands for Bharat Bill Payment Central Unit. It will be a single authorized entity operating the BBPS. NPCI is the BBPCU for BBPS.

53.What does BHIM stand for?

[A] Bharat Instant Money Transfer
[B] Bharat Interface for Money
[C] Bank Hotline Instant Money
[D] Banking Hit Instant Money


Correct Answer: B [Bharat Interface for Money]

BHIM stands for Bharat Interface for Money. It is a payment service based on the UPI. It allows the real time transfer of fund just using a single identity like name or mobile number.

54.What is the full form of NRE account?

[A] National Rural External account
[B] National Resident External account
[C] Non Resident External account
[D] None of the above


Correct Answer: C [Non Resident External account]

The NRE account can be credited with remittances from abroad, transfers from existing NRE/ FCNR accounts or by deposit of foreign exchange.

55.Credit Cards are a convenient substitute for which of the following?

[A] Cash
[B] Cheque
[C] Both 1 and 2
[D] None of The Above


Correct Answer: C [Both 1 and 2]

A credit card is a payment card issued to users (cardholders) to enable the cardholder to pay a merchant for goods and services based.

56.Which of the following is India’s first company to open with White Label ATMs ?

[A] Srei Finance Ltd
[B] Tata communication payments solutions Ltd
[C] Reliance communications Ltd
[D] Airtel Finance LTD


Correct Answer: B [Tata communication payments solutions Ltd]

Tata Communications Payment Solutions Limited or Tata Communications Banking InfraSolutions, is a wholly owned subsidiary of Tata Communications. TCPSL’s White Label ATM offering under the brand name “Indicash” marks its foray in the B2C space. With this it holds the distinction of being the first White Label ATM service provider in the country.

57.The term ATM stands for which of the following?

[A] Automatic teller machine
[B] Automated teller mechanism
[C] Automated teller machine
[D] None of the above


Correct Answer: C [Automated teller machine]

An automated teller machine (ATM) is an electronic banking outlet that allows customers to complete basic transactions without the aid of a branch representative or teller.

58.Sukanya Samriddhi Yojana was launched in which year?

[A] 2015
[B] 2016
[C] 2014
[D] 2013


Correct Answer: A [2015]

Sukanya Samriddhi Yojana is an ambitious small deposit savings scheme for a girl child. Under the scheme, a saving account can be opened in the name of girl child and deposits can be made for 14 years.

59.Which of the following is not the Negotiable Instrument?

[A] Currency Note
[B] Promissory Note
[C] Bill of Exchange
[D] Cheques Answer


Correct Answer: A [Currency Note]

Currency is a legal tender, guaranteed by the government to transfer value but the Negotiable Instruments have following characteristics. 1- It is written document, signed and stamped by the maker/drawer 2- It has a specific payee to whom the value is transferable 3- Negotiable Instruments requires acceptance and endorsement.

60.According Negotiable Instruments Act, what is a Promissory Note?

[A] A document written and Signed by the payer/maker
[B] Containing an unconditional undertaking
[C] To pay a certain sum of money only to a specific person or the bearer
[D] All of the above


Correct Answer: D [All of the above]

A promissory note is a financial instrument that contains a written promise by one party (the note’s issuer or maker) to pay another party (the note’s payee) a definite sum of money, either on demand or at a specified future date.

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