Banking Affairs MCQ Quiz - Objective Question with Answer for Banking Affairs - Download Free PDF

The correct answer is Both A and C.

In News

• RBI introduces a framework for recognizing Self-Regulatory Organizations (SROs) in the Account Aggregator ecosystem in March 2025.

Key Points

• The RBI’s new framework for SROs defines the key characteristics, responsibilities, and governance aspects of SROs in the AA ecosystem.
• SROs will operate within the existing regulatory framework for the AA ecosystem and ensure that technical specifications are maintained by ReBIT.
• The framework is designed to enhance the functioning of the AA ecosystem by bringing in self-regulation and ensuring smooth operations within the regulatory framework.
• Self-regulation by SROs aims to improve compliance, transparency, and operational efficiency in the AA ecosystem.
• The RBI’s framework helps ensure that the AA ecosystem operates in a structured, efficient, and legally compliant manner.

Additional Information

• RBI (Reserve Bank of India)
  • Established in - 1935
  • HQ - Mumbai
  • Governor - Sanjay Malhotra
• Account Aggregator (AA) Ecosystem
  • The AA ecosystem is designed to facilitate the sharing of financial data between entities with the consent of individuals, helping improve financial inclusion and transparency.
  • Self-Regulatory Organizations (SROs)
    • SROs are organisations that create and enforce rules within an industry to promote ethical practices and compliance with regulatory standards
  • Eligibility for Self-Regulatory Organizations (SROs) Framework:
    • The organization must be established as a not-for-profit company, in accordance with Section 8 of the Companies Act, 2013.
    • The applicant must possess a minimum net worth of INR 10 crore.
  • ReBIT
    • Reserve Bank Information Technology (ReBIT) is a wholly owned subsidiary of the RBI responsible for providing IT solutions and technical support for the Indian financial sector.

The correct answer is Both A and C.

In News

• HDFC Bank launches ‘Project HAKK’ to support Indian Air Force veterans and their families in March 2025.

Key Points

• Project HAKK (Hawai Anubhavi Kalyan Kendra) was launched by HDFC Bank to provide support to IAF pensioners, veterans, and their families.
• The project was initiated with an MoU between HDFC Bank and the Indian Air Force (IAF), specifically the ACAS-Accounts & Air Veterans office.
• HDFC Bank has partnered with CSC Academy to execute the project, which will provide services like financial assistance and health care to IAF veterans.
• Project HAKK aims to address the welfare needs of IAF veterans and their families, ensuring their well-being post-service.
• This initiative is part of HDFC Bank's ongoing efforts to serve and support military personnel and their families across India.

Additional Information

• Indian Air Force (IAF)
  • The Indian Air Force is the air wing of the Indian Armed Forces, responsible for securing Indian airspace and conducting aerial warfare.
• HDFC Bank
  • Founded in 1994 
  • HQ - Mumbai
  • MD and CEO - Sashidhar Jagdishan
• CSC Academy
  • Common Service Centers (CSC) are a part of the Indian Government's Digital India initiative to offer public services to rural areas via digital platforms.
• MoU (Memorandum of Understanding)
  • An MoU is a formal agreement between two or more parties outlining mutual intentions and responsibilities.

The correct answer is Mumbai.

In News

• Paytm partners with RBL Bank to provide sound boxes and card machines to merchants in March 2025.

Key Points

• Paytm’s partnership with RBL Bank aims to provide sound boxes and card machines to RBL's merchant customers.
• This partnership will help merchants in conducting more efficient and faster digital transactions.
• Sound boxes allow merchants to hear transaction confirmations, reducing errors and improving customer satisfaction.
• The partnership aims to enhance the adoption of digital payments among small and medium-sized enterprises (SMEs).
• It is a step towards empowering merchants with tools for seamless digital payment integration in their businesses.

Additional Information

• Paytm
  • Founded in 2010, it is a digital wallet and payments service provider.
  • Headquarters: Noida, Uttar Pradesh.
  • CEO - Vijay Shekhar Sharma
  • Its payment services include mobile recharge, bill payments, and merchant services.
• RBL Bank
  • Established in 1943, RBL Bank is a private-sector bank
  • Headquartered in Mumbai.
  • MD and CEO - R. Subramaniakumar.
  • It provides a wide range of financial services, including retail banking, corporate banking, and digital banking solutions.
• Sound Box
  • A small device that confirms payments to merchants by audibly announcing transaction details.
  • Designed to enhance payment accuracy and reduce transaction errors.

The correct answer is Both 1 and 2.

In News

• RBI amends KYC guidelines to allow video-based CIP for reactivating dormant accounts and unclaimed deposits.

Key Points

• The Reserve Bank of India (RBI) has revised its Know Your Customer (KYC) guidelines, permitting banks to use video-based KYC for reactivating dormant (inoperative) bank accounts and unclaimed deposits.
• For low-risk customers, banks will allow all transactions to continue, and KYC updates must be completed within one year of the due date or by June 30, 2026, whichever is later.
• Additionally, the RBI has authorised banks to employ Business Correspondents (BCs) to periodically update the KYC information of customers.
• To reactivate inoperative or unclaimed deposits, the RBI has instructed banks to:
  • Implement the video-based customer identification process (CIP).
  • Allow KYC updates at any branch of the bank, including branches other than the customer’s home branch, which is the branch where the account was originally opened.

Additional Information

• RBI
  • Established in - 1935
  • HQ - Mumbai
  • Governor - Sanjay Malhotra
• KYC (Know Your Customer): The process used by financial institutions to verify the identity of their clients to prevent fraud, money laundering, and terrorist financing.
• Video-based CIP: A customer identification process that involves the use of video conferencing to verify the identity of customers remotely, especially useful for reactivating accounts.
• Business Correspondents (BCs): Individuals or entities that act as intermediaries to facilitate banking services in areas where bank branches are not available.
• Inoperative Account: A bank account that has not been used for a certain period, typically a year, and is considered dormant unless reactivated.

The correct answer is It introduces a unique ‘@valid’ handle for all SEBI-registered intermediaries.

In News

• SEBI introduces the ‘Valid’ UPI payment mechanism for capital market transactions to ensure security and transparency.

Key Points

• Securities and Exchange Board of India (SEBI) announced that SEBI introduced a new Unified Payments Interface (UPI) payment mechanism
• The ‘Valid’ UPI system introduces a unique ‘@valid’ handle for SEBI-registered intermediaries.
• This mechanism ensures that investors can easily identify registered intermediaries during transactions.
• All investors will be required to transition to this system by October 1, 2025.
• A daily transaction limit of Rs. 5 lakh is set for capital market transactions through UPI.
• ‘Valid’ UPI aims to streamline payments and improve security in India’s capital markets.

Additional Information

• UPI: A real-time payment system that facilitates interbank transactions in India.
• SEBI: The Securities and Exchange Board of India, responsible for regulating the securities market in India.
  • Established in - 1992
  • HQ - Mumbai
  • Chairman - Tuhin Kanta Pandey
• Transaction Limits: Limits placed on daily transactions to ensure safe financial practices.
• Investor Protection: SEBI’s initiatives are focused on enhancing transparency and security for investors.

The correct answer is Vijaya Bank and Dena Bank.

Key Points 

• Bank of Baroda became the third largest bank after the amalgamation.
• State Bank of India (SBI) and ICICI Bank are the largest banks in India.
• The government of India proposed the merger of Dena Bank and Vijaya Bank with the Bank of Baroda on 17th September 2018.
• Branches of Vijaya Bank and Dena Bank will function as Bank of Baroda after the amalgamation.
• It was the first-ever three-way consolidation of banks in India.
• The Government of India nationalized the Bank of Baroda on 19 July 1969.
• The headquarters of the Bank of Baroda is located at Vadodara in Gujarat.

Additional Information

• Syndicate bank merged with Canara Bank In 2019.
• Allahabad Bank merged with Indian bank In 2019.
•  Andhra Bank and Corporation Bank merged with Union Bank of India in 2019.

The correct answer is India.

Key Points

• India has the highest number of bank branches in the world.
• India is leading in the list prepared by the number of bank branches in the world based on an IMF report published in 2015.
• India has more than 1.2 lakh bank branches.
• China has the second-largest number of bank branches in the world with over 95,680 bank branches.
• Colombia stood in the third position on the list with over 94,074 bank branches.
• RBI data published in 2016 shows that India now has over 1.3 lakh bank branches.
• There only 13.54 bank branches per 1 lakh adults in India while compared to its population size.

Additional Information

• The Bank of Hindustan is the first bank in India.
• Punjab National Bank is the first complete indigenous bank in India.
• City Union Bank is the first private bank in India.

The correct answer is Sri Jayawardenepura Kotte.

Additional Information

• The current capital of Sri Lanka is Sri Jayawardenepura Kotte.
• Sri Lanka’s President Gotabaya Rajapaksa has officially resigned, Speaker Mahinda Yapa Abeywardena announced Friday morning, ending days of uncertainty since the widely despised leader fled the island, dislodged by monumental public protests over a grave economic crisis. 
• Sri Lankan president Gotabaya Rajapaksa emailed his resignation letter Thursday night, sparking celebrations among protesters in Colombo.
• Shri Jayawardenepura Kotte is the administrative and Colombo is the executive and judicial capital of Sri Lanka. ​

In News

• The current president of  Srilanka is Ranil Wickremesinghe. (As of Jan 2023).

The correct answer is State Bank of India.

Key Points

• The Indian Navy and State Bank of India (SBI) have launched SBI’s NAV-eCash Card onboard India’s largest Naval Aircraft Carrier INS Vikramaditya.
• NAV-eCash Card with its dual-chip technology will facilitate both online as well as offline transactions.
• The card will remove the difficulties faced by personnel onboard in handling physical cash during deployment of the ship at high seas.

Additional Information

•  Headquarters of some important banks:

The correct answer is Central Bank of India.

Key Points

• Central Bank of India launched a contactless ‘RuPay Select’ debit card in December 2020.
  • It was launched in association with the National Payments Corporation of India.
  • It was launched on the occasion of Bank’s 110th foundation day.
  • The card was officially launched by then MD and CEO of the Central Bank of India, Pallav Mohapatra.
• The Central Bank of India was founded on 21 December 1911.
• The headquarters of the Central Bank of India is located in Mumbai.
• Matam Venkata Rao is the current MD and CEO of the Central Bank of India.

Additional Information

• State Bank of India:
  • State Bank of India is the largest public sector bank in India.
  • SBI descends from the Bank of Calcutta founded in 1806 through the Imperial Bank of India.
  • The Bank of Madras merged into the other two presidency banks, the Bank of Calcutta and the Bank of Bombay to form the Imperial Bank of India which in turn became the SBI on this day in 1955.
    • Founded - 1 July 1955.
    • Chairperson - Dinesh Kumar Khara.
    • Headquarters - Mumbai.
• HDFC Bank Limited:
  • ​HDFC Bank Limited is the largest private sector bank by assets[and by market capitalisation in India.
  • Founded - August 1994
  • Chairperson - Atanu Chakraborty
  • Headquarters - Mumbai.
• ICICI Bank Limited:
  • ​ICICI Bank Limited is a financial services company in India.
  • Founded -June 1994
  • Chairperson - Girish Chandra Chaturvedi
  • Headquarters - Vadodara, Gujarat.

The correct answer is ICICI Bank.

Key Points 

• ICICI Bank became the first bank in India to offer an instant PPF account facility.
• ICICI Bank says it is the first lender in the country to introduce a fully digital and paperless procedure for opening a PPF account.
• Private lender ICICI Bank has launched a digital service to allow customers to open a PPF account online, eliminating the need for furnishing paper documents.
• The digital service will enable customers to open a public provident fund (PPF) account instantly and in a completely online and paperless manner.

Additional Information

• ICICI Bank Limited is an Indian multinational bank and financial services company with its corporate office in Mumbai, Maharashtra.
  • It offers a wide range of banking products and financial services for corporate and retail customers through a variety of delivery channels and specialized subsidiaries in the areas of investment banking, life, non-life insurance, venture capital, and asset management.
  • The bank has a network of 5,275 branches and 15,589 ATMs across India and has a presence in 17 countries.
  • The bank has subsidiaries in the United Kingdom and Canada; branches in the United States, Singapore, Bahrain, Hong Kong, Qatar, Oman, Dubai International Finance Centre, China, and South Africa as well as representative offices in United Arab Emirates, Bangladesh, Malaysia, and Indonesia.

The correct answer is Mumbai.

Key Points

• Headquater of Bank of India is located in Bandra kulra Complex,Mumbai.
• The Bank of India was established on 07th September,1906.
• Bank of India was initially a private owned bank.
• It is under the ownership of Ministry of Finance, Government of India.
• Bank of India was founded on 7 September by a group of eminent businessmen from Mumbai, Maharashtra, India.

Additional Information

• The Bank was under private ownership and control till 19 July 1969 when it was nationalized along with 13 other banks.
• The Reserve Bank of Indi is India's central bank and regulatory body.
• It is responsible for regulation of the Indian banking system.
• It is under the ownership of Ministry of Finance, Government of India.
• It is responsible for the control, issue and maintaining supply of the Indian rupee.
• RBI:
  • RBI 25th Governor: Shaktikanta Das
  • RBI Headquarters: Mumbai
  • RBI Founded: 1 April 1935, Kolkata

The correct is option 3, i.e Akodara

• Akodara village of Gujarat situated in Sabarkantha district became the first digital village of India.
• ICICI Bank in 2015 under its Digital Village Project adopted Akodara village and made cashless by adopting digital technology.
• The village has its own official website, has 100% financial rate and mobile banking facilities in Hindi, English and Gujarati languages.
• Digital India was launched by Prime Minister Narendra Modi on 1 July 2015.
• Khonoma is the first green Village.
• Chizami village of Nagaland's Phek district has been uplifting the lives of women through the Chizami Weaves initiative of the North East Network (NEN).
• Odanthurai village of Tamil Nadu is a self-powered village that produces 7.5 lakh units of electricity in a year through the wind farm.

The correct answer is 13.2%.

Key Points

• Indian Bank has picked up a 13.27 percent stake in the proposed bad bank National Asset Reconstruction Company Ltd (NARCL).
• The lender has subscribed to 1,98,00,000 equity shares of NARCL for cash consideration of Rs. 19.80 crore.
• Three state-owned lenders -- SBI, Union Bank of India, and PNB -- had picked up over 12 percent stake each in NARCL on 30 September 2021.

Important Points

•  Headquarters of some important banks: