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Banking GK Questions 

    "Complete Banking General Knowledge (Banking GK Questions) - A detailed overview of the functions and roles of central banks (RBI and similar banks), types of banks (commercial, cooperative, development, investment banks), as well as banking products and services (savings accounts, FDs, loans, debit/credit cards, online banking). Information on important economic terms (interest rates, inflation, exchange rates), banking regulations (KYC, RBI guidelines) and government schemes (PMJDY, Mudra loan scheme). Also get information on the historical phases of banking - useful for competitive exams, banking jobs and general knowledge!"

Banking GK Questions

Banking GK Questions - History of Banking GK

"Banking GK Questions and Answers - 50+ important MCQs with explanations based on Banking History, Reserve Bank, Nationalization, Financial Reforms and important Banking concepts. Useful for competitive exams and banking preparation!"

1. Which was the first bank in India?
a) Reserve Bank of India
b) State Bank of India
c) Bank of Hindustan
d) Punjab National Bank
Answer: c) Bank of Hindustan
 Explanation: Bank of Hindustan was the first bank in India. This bank was established in Kolkata in 1770 and closed in 1832.
 

2. What was the name of the "Bank of Calcutta" established in 1806?
a) Bank of Bombay
b) Bank of Madras
c) Imperial Bank of India
d) State Bank of India
Answer: c) Imperial Bank of India
 Explanation: Bank of Calcutta (1806) later became Bank of Bengal (1809). In 1921, it merged with Bank of Bombay and Bank of Madras to form "Imperial Bank of India", which became State Bank of India in 1955.
 

3. When was the "Reserve Bank of India" established in India?
a) 1925
b) 1935
c) 1947
d) 1950
Answer: b) 1935
 Explanation: The Reserve Bank of India (RBI) was established on 1 April 1935. Initially, this bank was privately owned, but it was nationalized in 1949.
 

4. In which year were the first nationalized banking reforms made in India?
a) 1955
b) 1969
c) 1980
d) 1991
Answer: b) 1969
 Explanation: On 19 July 1969, 14 large banks were nationalized under the leadership of the then Prime Minister Indira Gandhi.
 

5. Which is the largest public sector bank in India?
a) Punjab National Bank
b) Bank of Baroda
c) State Bank of India
d) Canara Bank
Answer: c) State Bank of India
 Explanation: State Bank of India (SBI) is the largest public sector bank in India, which was earlier known as Imperial Bank.
 

6. In which year was the LPG policy (Liberalization, Privatization, Globalization) implemented in India for economic reforms?
a) 1980
b) 1991
c) 2000
d) 2005
Answer: b) 1991
 Explanation: In 1991, private banks were allowed to enter the banking sector under the economic reforms under the guidance of Dr. Manmohan Singh.
 

7. Which is the largest private bank in India?
a) ICICI Bank
b) HDFC Bank
c) Axis Bank
d) Kotak Mahindra Bank
Answer: b) HDFC Bank
 Explanation: HDFC Bank is the largest private bank in India by market capitalization and customer service.

 8. In which year did the "Swadeshi Banking Movement" start?
a) 1850
b) 1906
c) 1947
d) 1969
Answer: b) 1906
 Explanation: The Swadeshi Banking Movement started in 1906. In this, Indians tried to establish their own banks.
 

9. Which is the first women's bank in India?
a) State Bank of India
b) Bharatiya Mahila Bank
c) ICICI Bank
d) HDFC Bank
Answer: b) Bharatiya Mahila Bank
 Explanation: Bharatiya Mahila Bank (BMB) was established in 2013, which was only for women.

 

10. In which year was 'Bank of India' established?
a) 1906
b) 1921
c) 1949
d) 1955
Answer: a) 1906
 Explanation: Bank of India was established on 7 September 1906 in Mumbai.

11. Which important banking law was enacted in 1949?
a) Nationalization Act
b) Banking Regulation Act
c) Reserve Bank Act
d) Financial Reforms Act
Answer: b) Banking Regulation Act
Explanation: 

    The Banking Regulation Act, 1949 was an important law, which gave the Reserve Bank (RBI) the power to regulate the banking sector in India. Through this act, the responsibility of controlling bank licenses, branch expansion, mergers and closures was entrusted to RBI. Also, compliance with capital requirements, auditing and governance rules of banks was made mandatory. Due to various amendments in this act, the banking system in India has become more stable and secure.

 
 12. In which year was the State Bank of India (SBI) nationalized?
a) 1947
b) 1955
c) 1969
d) 1991
Answer: b) 1955
 Explanation: In 1955, Imperial Bank of India was nationalized and named State Bank of India.
 
 13. Which is the first payment bank in India?
a) FINO Payment Bank
b) Airtel Payment Bank
c) Jio Payment Bank
d) Paytm Payment Bank
Answer: b) Airtel Payment Bank
 Explanation: Airtel Payment Bank became the first payment bank in India in 2017.
 
 14. The Reserve Bank of India was established on the recommendation of which commission?
a) Hilton Young Commission
b) Narasimham Committee
c) Rangarajan Committee
d) Chakravarthy Committee
Answer: a) Hilton Young Commission
 Explanation: RBI was established in 1935 on the recommendation of the Hilton Young Commission.
 
 15. When was the Narasimha Committee formed to reform the banking sector?
a) 1969
b) 1980
c) 1991
d) 2000
Answer: c) 1991
 Explanation: The Narasimha Committee was formed in 1991 and gave important recommendations for financial reforms.
 
 16. What type of bank is the Reserve Bank of India?
a) Commercial bank
b) Cooperative bank
c) Central bank
d) Foreign bank
Answer: c) Central bank
 Explanation: RBI is the central bank of India and controls the economic policies of the country.
 
 17. Why were banks nationalized?
a) For consolidation of banks
b) To develop the economy
c) To help private banks
d) To provide foreign investors to banks
Answer: b) To develop the economy
 Explanation: Nationalization was an attempt to increase financial inclusion by providing banking services to the poor and rural areas.
 
 18. What is IFSC code used for?
a) To open a bank account
b) For online fund transfer
c) To take a bank loan
d) For ATM card
Answer: b) For online fund transfer
 Explanation: IFSC (Indian Financial System Code) is used for online transactions like NEFT, RTGS, and IMPS.
 
 19. Which bank implements the "Gold Monetization Scheme" in India?
a) State Bank of India
b) Bank of Baroda
c) Reserve Bank of India
d) Indian Bank
Answer: c) Reserve Bank of India
 Explanation: The "Gold Monetization Scheme" was launched by RBI, through which people can get interest on their gold.

20. In which year was the decision taken to link bank accounts with Aadhaar card in India?
a) 2005
b) 2010
c) 2014
d) 2018
Answer: c) 2014
 Explanation: After the launch of Jan Dhan Yojana in 2014, the policy of linking bank accounts with Aadhaar was adopted.
 
 21. Where was the first ATM machine installed in India?
a) Mumbai
b) Delhi
c) Kolkata
d) Chennai
Ans: a) Mumbai
 Explanation: India's first ATM installed by HSBC Bank in Mumbai in 1987.
 
 22. Indian banks operate under the supervision of which body?
a) SEBI
b) IRDAI
c) RBI
d) NITI Aayog
Ans: c) RBI
 Explanation: All banks in India work under the control of RBI.
 
 23. Which was the first computerized bank in India?
a) ICICI Bank
b) State Bank of India
c) Canara Bank
d) Bank of India
Answer: a) ICICI Bank
 Explanation: ICICI Bank was the first fully computerized bank in India.
 
 24. Which bank was the first to launch mobile banking services?
a) HDFC Bank
b) ICICI Bank
c) State Bank of India
d) Bank of Baroda
Answer: b) ICICI Bank
 Explanation: ICICI Bank launched mobile banking services for the first time in India.
 
 25. When was the Pradhan Mantri Jan Dhan Yojana launched?
a) 2005
b) 2010
c) 2014
d) 2016
Answer: c) 2014
 Explanation: Pradhan Mantri Jan Dhan Yojana (PMJDY) was launched on 28 August 2014, which was to include the poor in banking services.
 
 26. In which year was the first foreign bank established in India?
a) 1770
b) 1806
c) 1853
d) 1900
Answer: c) 1853
 Explanation: In 1853, Standard Chartered Bank was established in India, which was the first foreign bank.
 
 27. Is State Bank of India (SBI) included in the nationalized banks?
a) Yes
b) No
Answer: b) No
 Explanation: SBI was nationalized in 1955, but it is not included in the banks nationalized in 1969 and 1980.
 
 28. In which year was the first cooperative bank established in India?
a) 1885
b) 1904
c) 1947
d) 1955
Answer: b) 1904
 Explanation: The first cooperative bank was established under the Cooperatives Act of 1904.
 
 29. In which city was the Reserve Bank of India previously located?
a) Delhi
b) Mumbai
c) Kolkata
d) Bengaluru
Answer: c) Kolkata
 Explanation: RBI was established in Kolkata, but the headquarters were shifted to Mumbai in 1937.
 
 30. Who established the ‘Bank of Hindustan’?
a) French merchant
b) British East India Company
c) Indian merchant
d) Parsi industrialist
Answer: b) British East India Company
 Explanation: Bank of Hindustan was established in 1770 with the help of the British East India Company.
 
 31. In which year did the Indian rupee become a common currency?
a) 1857
b) 1861
c) 1947
d) 1950
Answer: b) 1861
 Explanation: According to the Paper Currency Act of 1861, the government got the official right to print notes for the first time in India.
 
 32. Which was the first rural bank in India?
a) State Bank of India
b) Bank of India
c) Syndicate Bank
d) Pratima Gramin Bank
Answer: d) Pratima Gramin Bank
 Explanation: Prati Gramin Bank was established in 1975 and is the first rural bank in India.
 
 33. By which law did RBI get the right to print currency notes?
a) Banking Regulation Act 1949
b) RBI Act 1934
c) Currency Act 1861
d) Financial Reforms Act 1991
Answer: b) RBI Act 1934
Explanation: As per the RBI Act 1934, RBI was given the right to print currency notes.
 
 34. What types of banks were allowed to operate in India after 1991?
a) Only government banks
b) Only cooperative banks
c) Private banks
d) Only foreign banks
Answer: c) Private banks
 Explanation: In 1991, private banks were given the opportunity to operate in India as per the recommendations of the Narasimham Committee.
 
 35. Who launched the first credit card in India?
a) State Bank of India
b) HDFC Bank
c) Citi Bank
d) ICICI Bank
Answer: c) Citi Bank
 Explanation: Citi Bank introduced the first credit card in India in 1981.
 
 36. What type of bank is ‘Fino Payments Bank’?
a) Commercial bank
b) Payment bank
c) Cooperative bank
d) Housing finance bank
Answer: b) Payment bank
 Explanation: Fino Payments Bank is a payments bank and offers digital banking services.
 
 37. Why are banks merged?
a) For profit
b) To reduce staff
c) To improve the efficiency of banks
d) To reduce the number of customers
Answer: c) To improve the efficiency of banks
 Explanation: Bank mergers are done to increase financial strength and efficiency.
 
 38. In which year did the ‘State Bank of India’ get full government ownership?
a) 1949
b) 1955
c) 1969
d) 1991
Answer: b) 1955
 Explanation: SBI was fully governmentized in 1955.
 
 39. What type of bank is ICICI Bank?
a) Public sector bank
b) Private sector bank
c) Cooperative bank
d) Foreign bank
Answer: b) Private sector bank
 Explanation: ICICI Bank is a large private sector bank in India.
 
 40. Under which scheme is there a facility to open a zero balance bank account for the poor?
a) Mudra Yojana
b) Startup India
c) Pradhan Mantri Jan Dhan Yojana
d) Make in India
Answer: c) Pradhan Mantri Jan Dhan Yojana
 Explanation: The Pradhan Mantri Jan Dhan Yojana, launched in 2014, provides a zero balance bank account facility for the poor.
 
 41. What are NEFT and RTGS used for?
a) For printing notes
b) For currency exchange
c) For online money transfer
d) For loan approval
Answer: c) For online money transfer
 Explanation: NEFT and RTGS are secure online fund transfer methods.
 
 42. Which bank was the first to launch ‘Internet Banking’ facility in India?
a) ICICI Bank
b) SBI
c) Bank of Baroda
d) HDFC Bank
Answer: a) ICICI Bank
 Explanation: ICICI Bank was the first to launch Internet Banking facility in India.
 
43. Under which scheme, loans are provided at low interest rates for women?
a) Mudra Yojana
b) Women's Savings Scheme
c) Sukanya Samriddhi Yojana
d) Startup India
Answer: a) Mudra Yojana
 Explanation: Under Mudra Yojana, loans are provided at low interest rates for women for their industries.
 
 44. Under the guidance of which institution are the policies regarding financial inclusion decided?
a) National Stock Exchange (NSE)
b) Reserve Bank of India (RBI)
c) SEBI (SEBI)
d) Ministry of Finance
Answer: b) Reserve Bank of India (RBI)
 Explanation: RBI is the main institution that decides financial inclusion policies.
 
 45. On the recommendation of which committee, private banks were allowed in India?
a) Narasimha Committee
b) Rangarajan Committee
c) Chakravarthy Committee
d) Kelkar Committee
Answer: a) Narasimha Committee
 Explanation: In 1991, private banks were allowed in India on the recommendation of Narasimha Committee.
 
 46. Which Indian bank is known as ‘India’s International Bank’?
a) Bank of India
b) Punjab National Bank
c) Bank of Baroda
d) State Bank of India
Answer: c) Bank of Baroda
 Explanation: Bank of Baroda is an Indian bank with international expansion, hence it is called ‘India’s International Bank’.
 
 47. Through which law did the Government of India nationalize 14 banks in 1969?
a) Banking Regulation Act 1949
b) Bank Nationalization Act 1969
c) Financial Reforms Act 1991
d) Financial Services Act 1980
Answer: b) Bank Nationalization Act 1969
 Explanation: In 1969, the Government of India enacted this law to nationalize 14 large banks.
 
 48. Who was the first Governor of the Reserve Bank of India?
a) C.D. Deshmukh
b) Osborne Smith
c) Benegal Rama Rao
d) M. Narasimham
Answer: b) Osborne Smith
 Explanation: The first Governor of RBI in 1935 was Osborne Smith.
 
 49. What were the primary objectives of the banks after their nationalization?
a) Providing banking facilities in rural areas
b) Using banks for government profit
c) Establishing banks only in urban areas
d) Providing loans only to private entrepreneurs
Answer: a) Providing banking facilities in rural areas
 Explanation: After the nationalization of banks, one of the important objectives was to provide banking services to rural areas.
 
 50. Which is the oldest government bank in India?
a) Bank of Baroda
b) Punjab National Bank
c) Allahabad Bank
d) State Bank of India
Answer: d) State Bank of India
 Explanation: SBI was originally established in 1806 as ‘Bank of Calcutta’, hence it is the oldest government bank.

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