Banking GK Questions – 100% Free

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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

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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