Banking MCQ Quiz | 100 Questions | 10 Sets

 

🏦 Banking MCQ Quiz – Introduction

Banking Awareness is one of the most important sections in competitive examinations such as SBI PO, IBPS PO & Clerk, RRB, SSC, Railways, State PSC and other government job exams. A strong understanding of banking concepts helps candidates score well in the General Awareness section.

This Banking MCQ Quiz is divided into 10 sets, with 10 multiple-choice questions in each set. The questions cover important topics like RBI and its functions, banking terms, financial institutions, digital banking, payment systems, monetary policy, and important abbreviations.

Each quiz set includes a “Show Answer” button to help learners instantly verify answers. This quiz format is ideal for practice, revision, and self-assessment, and is suitable for both beginners and advanced aspirants.

🏦 Banking MCQ Quiz (10 Sets)

Set 1

1. RBI was established in?
A. 1930 B. 1934 C. 1935 D. 1947

✔ Answer: C (1935)

2. RBI headquarters is located at?
A. Delhi B. Kolkata C. Mumbai D. Chennai

✔ Answer: C (Mumbai)

3. Who is the current banker to the Government of India?
A. SBI B. RBI C. NABARD D. PNB

✔ Answer: B (RBI)

4. CRR stands for?
A. Credit Reserve Ratio
B. Cash Reserve Ratio
C. Capital Reserve Ratio
D. Current Reserve Ratio

✔ Answer: B

5. SLR is maintained in the form of?
A. Cash only
B. Gold only
C. Approved securities
D. Loans

✔ Answer: C

6. Which bank is known as Banker’s Bank?
A. SBI B. RBI C. NABARD D. IDBI

✔ Answer: B

7. NABARD was established in?
A. 1975 B. 1980 C. 1982 D. 1991

✔ Answer: C (1982)

8. Which is NOT a commercial bank?
A. SBI B. PNB C. RBI D. HDFC

✔ Answer: C

9. Banking Regulation Act was passed in?
A. 1935 B. 1947 C. 1949 D. 1951

✔ Answer: C

10. ATM stands for?
A. Any Time Money
B. Automated Teller Machine
C. Auto Transfer Machine
D. Advanced Teller Machine

✔ Answer: B

Set 2

1. IFSC code is used for?
A. ATM B. NEFT/RTGS C. Cheque D. Loan

✔ Answer: B

2. Full form of NEFT?

✔ Answer: National Electronic Funds Transfer

3. RTGS minimum amount is?

✔ Answer: ₹2 Lakhs

4. Which is a digital payment app?

✔ Answer: UPI

5. UPI is regulated by?

✔ Answer: RBI

6. Which bank launched YONO?

✔ Answer: SBI

7. Lead Bank Scheme started in?

✔ Answer: 1969

8. Who prints currency notes in India?

✔ Answer: RBI

9. Plastic money refers to?

✔ Answer: Debit/Credit Cards

10. NPA stands for?

✔ Answer: Non-Performing Asset

Set 2

1. IFSC code is used for which transaction?
A. ATM withdrawal
B. NEFT / RTGS / IMPS
C. Cheque clearing
D. Loan approval

✔ Answer: B (NEFT / RTGS / IMPS)

2. Full form of NEFT is:
A. National Electronic Fund Transfer
B. National Easy Fund Transfer
C. New Electronic Fund Transfer
D. National Economy Fund Transfer

✔ Answer: A

3. Minimum amount required for RTGS is:
A. ₹10,000
B. ₹50,000
C. ₹1 Lakh
D. ₹2 Lakh

✔ Answer: D (₹2 Lakh)

4. UPI stands for:
A. Unified Payment Interface
B. Universal Payment Interface
C. Unique Payment Interface
D. United Payment Interface

✔ Answer: A

5. Which organization operates UPI in India?
A. RBI
B. SBI
C. NPCI
D. SEBI

✔ Answer: C (NPCI)

6. IMPS provides fund transfer facility on:
A. Bank working days only
B. RBI holidays only
C. 24×7 basis
D. Office hours only

✔ Answer: C (24×7 basis)

7. Which card is directly linked to a bank account?
A. Credit Card
B. Debit Card
C. Charge Card
D. Smart Card

✔ Answer: B (Debit Card)

8. NPA in banking means:
A. New Performing Asset
B. Non-Paid Account
C. Non-Performing Asset
D. National Public Asset

✔ Answer: C

9. Which payment system replaced BHIM as a common platform?
A. NEFT
B. UPI
C. RTGS
D. IMPS

✔ Answer: B (UPI)

10. Cheque validity period in India is:
A. 3 months
B. 6 months
C. 9 months
D. 12 months

✔ Answer: A (3 months)

Set 3

1. CRR is maintained by banks with:
A. RBI
B. Government of India
C. SEBI
D. NABARD

✔ Answer: A (RBI)

2. SLR is expressed as a percentage of:
A. Total assets
B. Time liabilities only
C. Net Demand and Time Liabilities
D. Total deposits

✔ Answer: C

3. Which of the following is NOT a function of RBI?
A. Issue of currency
B. Custodian of foreign exchange
C. Accepting public deposits
D. Banker to Government

✔ Answer: C

4. Repo Rate is the rate at which RBI lends money to:
A. Government
B. Commercial Banks
C. NABARD
D. IMF

✔ Answer: B

5. Reverse Repo Rate is the rate at which RBI borrows money from:
A. Government
B. NBFCs
C. Commercial Banks
D. World Bank

✔ Answer: C

6. Bank Rate is generally higher than:
A. Repo Rate
B. Reverse Repo Rate
C. CRR
D. SLR

✔ Answer: A

7. Which committee recommended Banking Sector Reforms in India?
A. Rangarajan Committee
B. Narasimham Committee
C. Urjit Patel Committee
D. Kelkar Committee

✔ Answer: B

8. Which of the following comes under Monetary Policy tools?
A. Fiscal Deficit
B. Repo Rate
C. GST
D. Budget

✔ Answer: B

9. Who decides the Monetary Policy in India?
A. Finance Ministry
B. RBI Governor alone
C. Monetary Policy Committee (MPC)
D. SEBI

✔ Answer: C

10. How many members are there in the Monetary Policy Committee?
A. 4
B. 5
C. 6
D. 7

✔ Answer: C (6)

Set 4

1. Which bank is called the Central Bank of India?
A. SBI
B. RBI
C. NABARD
D. SEBI

✔ Answer: B (RBI)

2. The full form of KYC is:
A. Know Your Customer
B. Keep Your Cash
C. Know Your Credit
D. Know Your Capital

✔ Answer: A

3. Which of the following is a demand deposit?
A. Fixed Deposit
B. Recurring Deposit
C. Savings Account
D. Public Provident Fund

✔ Answer: C

4. Which type of cheque is crossed with two parallel lines?
A. Open cheque
B. Bearer cheque
C. Crossed cheque
D. Post-dated cheque

✔ Answer: C

5. Which banking term means “lending against security”?
A. Deposit
B. Loan
C. Advance
D. Overdraft

✔ Answer: C (Advance)

6. What is the tenure of a Fixed Deposit?
A. 7 days to 10 years
B. 1 day to 1 year
C. 6 months only
D. 5 years only

✔ Answer: A

7. Which account earns the highest interest generally?
A. Current Account
B. Savings Account
C. Fixed Deposit Account
D. Salary Account

✔ Answer: C

8. Which instrument is used for international trade payment?
A. Demand Draft
B. Letter of Credit
C. Fixed Deposit
D. Cheque

✔ Answer: B

9. Which of the following is NOT a negotiable instrument?
A. Cheque
B. Bill of Exchange
C. Promissory Note
D. Fixed Deposit Receipt

✔ Answer: D

10. Which Act governs banking companies in India?
A. RBI Act, 1934
B. Banking Regulation Act, 1949
C. Companies Act, 2013
D. SEBI Act, 1992

✔ Answer: B

Set 5

1. Which of the following is a time deposit?
A. Current Account
B. Savings Account
C. Fixed Deposit
D. Overdraft

✔ Answer: C (Fixed Deposit)

2. Current Account is mainly opened by:
A. Students
B. Farmers
C. Businessmen
D. Pensioners

✔ Answer: C (Businessmen)

3. Which of the following does NOT earn interest?
A. Savings Account
B. Fixed Deposit
C. Current Account
D. Recurring Deposit

✔ Answer: C

4. Overdraft facility is generally given against:
A. Fixed Deposit
B. Gold only
C. Salary account only
D. Cash balance

✔ Answer: A

5. Which banking service allows withdrawal beyond balance?
A. Loan
B. Cash Credit
C. Overdraft
D. Deposit

✔ Answer: C

6. Which of the following is a retail loan?
A. Cash Credit
B. Home Loan
C. Working Capital Loan
D. Term Loan to company

✔ Answer: B

7. EMI stands for:
A. Equal Monthly Installment
B. Easy Monthly Installment
C. Equal Money Installment
D. Every Month Installment

✔ Answer: A

8. Which bank account is best for salaried persons?
A. Current Account
B. Fixed Deposit Account
C. Savings Account
D. Cash Credit Account

✔ Answer: C

9. Which deposit scheme encourages small monthly savings?
A. Fixed Deposit
B. Current Deposit
C. Recurring Deposit
D. Term Deposit

✔ Answer: C

10. Which of the following is NOT a bank charge?
A. Processing fee
B. Service charge
C. Penalty
D. Dividend

✔ Answer: D

Set 6

1. Which of the following is a scheduled bank?
A. RBI
B. SBI
C. NABARD
D. SEBI

✔ Answer: B (SBI)

2. Which bank is the largest public sector bank in India?
A. PNB
B. Bank of Baroda
C. SBI
D. Canara Bank

✔ Answer: C (SBI)

3. Which of the following is a private sector bank?
A. SBI
B. PNB
C. HDFC Bank
D. Bank of India

✔ Answer: C

4. Small Finance Banks mainly focus on:
A. Corporate loans
B. Infrastructure financing
C. Financial inclusion
D. Foreign trade

✔ Answer: C

5. Which organization regulates NBFCs in India?
A. SEBI
B. Ministry of Finance
C. RBI
D. NABARD

✔ Answer: C

6. Which of the following is NOT a type of bank?
A. Cooperative Bank
B. Regional Rural Bank
C. Investment Bank
D. Insurance Bank

✔ Answer: D

7. RRBs were established under which Act?
A. RBI Act, 1934
B. Banking Regulation Act, 1949
C. Regional Rural Banks Act, 1976
D. Companies Act, 2013

✔ Answer: C

8. Payment Banks are allowed to accept deposits up to:
A. ₹50,000
B. ₹1 Lakh
C. ₹2 Lakhs
D. ₹5 Lakhs

✔ Answer: C (₹2 Lakhs)

9. Which bank introduced the first ATM in India?
A. SBI
B. ICICI Bank
C. HSBC
D. Citibank

✔ Answer: C (HSBC)

10. Which of the following is a foreign bank in India?
A. Axis Bank
B. Kotak Mahindra Bank
C. HSBC Bank
D. IDFC First Bank

✔ Answer: C

Set 7

1. Which of the following is known as plastic money?
A. Paper currency
B. Credit and Debit Cards
C. Coins
D. Cheques

✔ Answer: B (Credit and Debit Cards)

2. Credit card allows payment based on:
A. Available balance
B. Prepaid amount
C. Borrowed funds
D. Fixed deposit

✔ Answer: C

3. Which of the following is NOT a digital wallet?
A. Paytm
B. PhonePe
C. Google Pay
D. NEFT

✔ Answer: D

4. POS stands for:
A. Point of Sale
B. Place of Service
C. Payment of Sale
D. Proof of Service

✔ Answer: A

5. Which technology is used in ATM cards?
A. Barcode
B. Magnetic Stripe / Chip
C. QR Code
D. RFID only

✔ Answer: B

6. Internet banking is also known as:
A. Core banking
B. Net banking
C. Retail banking
D. Unit banking

✔ Answer: B

7. Which of the following payment systems works 24×7?
A. NEFT
B. RTGS
C. IMPS
D. Cheque

✔ Answer: C (IMPS)

8. QR code based payments are mainly linked with:
A. ATM
B. UPI
C. Cheque
D. Demand Draft

✔ Answer: B

9. Which of the following is used for international card payments?
A. RuPay only
B. NPCI
C. Visa / MasterCard
D. RBI

✔ Answer: C

10. Which initiative promotes cashless transactions in India?
A. Digital India
B. Make in India
C. Startup India
D. Skill India

✔ Answer: A

Set 8

1. What does NACH stand for?
A. National Automated Clearing House
B. National Automated Clearing Hub
C. National Advanced Clearing House
D. National Account Clearing House

✔ Answer: A

2. ECS and NACH are mainly used for:
A. Cash withdrawal
B. Salary and subsidy payments
C. ATM transactions
D. Foreign exchange

✔ Answer: B

3. Which organization manages NACH in India?
A. RBI
B. SEBI
C. NPCI
D. NABARD

✔ Answer: C

4. Which of the following is a government-backed insurance scheme?
A. PMSBY
B. LIC only
C. ULIP
D. Mutual Fund

✔ Answer: A (PMSBY)

5. PMJDY stands for:
A. Pradhan Mantri Jan Dhan Yojana
B. Prime Minister Job Deposit Yojana
C. Public Money Deposit Yojana
D. People Money Development Yojana

✔ Answer: A

6. Which scheme provides accident insurance of ₹2 lakh?
A. PMJJBY
B. PMSBY
C. Atal Pension Yojana
D. Kisan Credit Card

✔ Answer: B

7. Atal Pension Yojana is regulated by:
A. RBI
B. SEBI
C. PFRDA
D. NABARD

✔ Answer: C

8. Which card is issued under PMJDY?
A. Visa Card
B. MasterCard
C. RuPay Debit Card
D. Credit Card

✔ Answer: C

9. KYC is mandatory to prevent:
A. Tax collection
B. Money laundering
C. Inflation
D. Recession

✔ Answer: B

10. Which banking term means “customer confidentiality”?
A. Secrecy
B. Liquidity
C. Solvency
D. Profitability

✔ Answer: A

Set 9

1. What does NPA stand for in banking?
A. New Performing Asset
B. Non-Paid Account
C. Non-Performing Asset
D. National Public Asset

✔ Answer: C

2. An asset becomes NPA when interest or principal remains overdue for more than:
A. 30 days
B. 60 days
C. 90 days
D. 120 days

✔ Answer: C (90 days)

3. Which sector contributes the highest NPAs generally?
A. Agriculture
B. Retail loans
C. Corporate sector
D. Education loans

✔ Answer: C

4. SARFAESI Act deals with:
A. Tax recovery
B. Loan recovery
C. Insurance claims
D. Pension reforms

✔ Answer: B

5. SARFAESI Act was enacted in:
A. 1991
B. 1998
C. 2002
D. 2010

✔ Answer: C (2002)

6. Which institution was set up as a “Bad Bank” in India?
A. NABARD
B. ARCIL
C. SEBI
D. LIC

✔ Answer: B (ARCIL)

7. Which code helps in resolving corporate insolvency in India?
A. Banking Regulation Act
B. Companies Act
C. Insolvency and Bankruptcy Code (IBC)
D. SARFAESI Act

✔ Answer: C

8. IBC was implemented in India in the year:
A. 2014
B. 2015
C. 2016
D. 2018

✔ Answer: C (2016)

9. Which authority regulates Insolvency Professionals in India?
A. RBI
B. SEBI
C. IBBI
D. NABARD

✔ Answer: C (IBBI)

10. Which of the following helps banks recover bad loans?
A. Debit cards
B. Credit rating
C. Asset Reconstruction Companies
D. Mutual Funds

✔ Answer: C

Set 10

1. Which body regulates the Indian banking system?
A. SEBI
B. RBI
C. NABARD
D. Ministry of Finance

✔ Answer: B (RBI)

2. Which committee recommended the establishment of RBI?
A. Narasimham Committee
B. Hilton Young Commission
C. Urjit Patel Committee
D. Rangarajan Committee

✔ Answer: B

3. RBI was nationalized in the year:
A. 1935
B. 1947
C. 1949
D. 1951

✔ Answer: C (1949)

4. Who is the first Indian Governor of RBI?
A. Osborne Smith
B. C. D. Deshmukh
C. Benegal Rama Rau
D. Raghuram Rajan

✔ Answer: B

5. Which deposit is payable on demand?
A. Fixed Deposit
B. Recurring Deposit
C. Current Deposit
D. Term Deposit

✔ Answer: C

6. Which type of account is used by traders and firms?
A. Savings Account
B. Fixed Deposit Account
C. Current Account
D. Salary Account

✔ Answer: C

7. What is the minimum age to open a bank account in India?
A. 10 years
B. 12 years
C. 18 years
D. No minimum age

✔ Answer: D

8. Which of the following is NOT a banking function?
A. Accepting deposits
B. Granting loans
C. Issuing currency notes
D. Providing ATM services

✔ Answer: C

9. Which rate is known as the policy rate of RBI?
A. Bank Rate
B. Repo Rate
C. Reverse Repo Rate
D. CRR

✔ Answer: B

10. Which initiative aims to provide banking services to all citizens?
A. Digital India
B. PMJDY
C. Startup India
D. Make in India

✔ Answer: B