Question 1

All women SHGs under DAY-NRLM will be eligible for interest subvention on prompt payment to the extent of the difference between the lending rates and 7% for loans up to ₹3,00,000, subject to a maximum of

Accepted Answer

3%. Under DAY-NRLM, women SHGs are eligible for interest subvention on prompt repayment. The subvention is the difference between the lending rate and 7%, subject to a maximum of 3%.

Question 2

For how many months is a demand draft valid?

Accepted Answer

3 months. A demand draft is generally valid for 3 months from the date of issue unless otherwise specified by the issuing bank. After that period, it usually needs to be revalidated or reissued. Hence, the correct option is 3 months.

Question 3

Who has been appointed as the MD and CEO of the National Payments Corporation of India (as of 2020)?

Accepted Answer

Dilip Asbe. Dilip Asbe was appointed as the MD and CEO of NPCI. The question asks for the appointment as of 2020, and among the given options he is the correct one.

Question 4

Real Time Gross Settlement (RTGS) system is primarily meant for large-value transactions. The minimum amount to initiate a transaction through RTGS is ₹2 lakh, with no upper or maximum ceiling.

Accepted Answer

Rs. 2 lakhs. RTGS is designed for real-time settlement of high-value transactions. As per RBI guidelines, the minimum amount for RTGS is ₹2 lakh and there is no upper limit.

Question 5

The Regional Rural Banks Act, 1976 mainly provides for the incorporation, regulation, and winding up of Regional Rural Banks (RRBs). The Act mandates that of the capital issued by an RRB, ___% shall be held by the Central Government, ___% by the concerned State Government, and ___% by the

Accepted Answer

50:15:35. Under the Regional Rural Banks Act, the shareholding pattern of an RRB is fixed by law. The Central Government holds 50%, the State Government 15%, and the sponsor bank 35%.

Question 6

According to RBI regulations, what is the minimum age a child must have completed to open and operate a savings bank account independently?

Accepted Answer

10 Years. RBI permits a minor who has completed 10 years of age to open and operate a savings bank account independently, subject to the bank's terms and conditions. Therefore, the correct answer is 10 years.

Question 7

Regional Rural Banks will have a target of ___ of total outstanding for priority sector lending in agriculture.

Accepted Answer

18%. Regional Rural Banks have a prescribed sub-target for agriculture under priority sector lending. The correct figure is 18% of total outstanding.

Question 8

Which was the first microfinance bank to become fully convertible in the scheduled bank category?

Accepted Answer

Bandhan Bank. Bandhan Bank was formed from Bandhan Financial Services, a microfinance institution, and became a scheduled commercial bank. It is widely known as the first microfinance institution in India to convert into a bank.

Question 9

Who has expanded its partnership with Standard Bank Group (SBG) to centralize its custody and securities settlement operations in over 15 markets?

Accepted Answer

Tata Consultancy Services. Tata Consultancy Services expanded its partnership with Standard Bank Group to centralize custody and securities settlement operations across multiple markets. This is a banking technology and financial services collaboration.

Question 10

With which bank has MSTC Ltd. signed an agreement for the development of a dedicated e-Auction platform?

Accepted Answer

Allahabad Bank. MSTC Ltd. signed the agreement with Allahabad Bank for developing a dedicated e-Auction platform. Such questions test awareness of recent banking collaborations and digital initiatives.

Question 11

India's wave of unicorns reaches an all-time high with Open, a ______ becoming the 100th unicorn in the country.

Accepted Answer

Fintech Neobank. Open is a fintech neobank, which provides digital-first banking services. The question asks for the type of startup that made Open the 100th unicorn in India.

Question 12

The Hinduja Group is planning to raise its stake in ______ from 15 per cent to 26 per cent with an investment of ₹10,000 crore.

Accepted Answer

IndusInd Bank. The Hinduja Group has been reported to plan increasing its stake in IndusInd Bank from 15% to 26% with a large investment. The other options are unrelated to this specific news item.

Question 13

A sum invested at a certain rate of simple interest for 3 years gives interest equal to $\frac{3}{4}$ of the sum. Find the amount received when ₹1500 is invested at the same rate for 2 years at compound interest, compounded annually.

Accepted Answer

₹2343.75. If simple interest for 3 years equals 3/4 of the principal, then the rate is 25% per annum because $P \times R \times 3 / 100 = 3P/4$. Applying 25% compound interest for 2 years on ₹1500 gives $1500 \times 1.25^2 = 2343.75$.

Question 14

What is the full form of MMID?

Accepted Answer

Mobile Money Identifier. MMID stands for Mobile Money Identifier. It is used in mobile banking systems, especially for fund transfers through mobile channels.

Question 15

When was the State Bank of India nationalised?

Accepted Answer

1955. The State Bank of India was formed in 1955 when the Imperial Bank of India was nationalised and renamed SBI. The 1969 nationalisation refers to 14 major commercial banks, not SBI.

Question 16

The PIDF Scheme, as operationalized by the Reserve Bank from 15 January 2021, subsidizes deployment of Points of Sale (PoS) infrastructure (physical and digital modes) in tier-6 centres and northeastern states of the country. In this regard, RBI envisages creating ______ touch points every

Accepted Answer

30 Lakhs. Under the Payments Infrastructure Development Fund (PIDF), RBI aimed to expand digital payment acceptance infrastructure in underserved areas. The annual target mentioned for creating touch points is 30 lakh.

Question 17

As per the Union Budget, the Mudra loan limit will be enhanced from the current ₹10 lakh for those who have availed and successfully repaid loans previously taken under the Tarun category. What will be the new limit?

Accepted Answer

Rs. 20 lakh. The Union Budget proposal increased the MUDRA loan limit for borrowers who have successfully repaid previous Tarun loans. The new enhanced limit is ₹20 lakh. This is a policy-based banking awareness question.

Question 18

Which section of the RBI Act, 1934 deals with the constitution and powers of the Monetary Policy Committee?

Accepted Answer

Section 45ZB. Section 45ZB of the RBI Act, 1934 deals with the constitution of the Monetary Policy Committee and related provisions. The other sections listed are unrelated to the MPC. This is a direct banking awareness question.

Question 19

Which was India's first payments bank to enable cardless cash withdrawals at over 100,000 ATMs?

Accepted Answer

Jio Payments Bank. Jio Payments Bank was the first payments bank to enable cardless cash withdrawals at over 100,000 ATMs. The question refers to a specific banking feature introduced by this bank.

Question 20

The startups that have the potential to enter the unicorn club soon are also called "__________". These startups are often backed by angel investors or financial speculators based on future projections or apparent valuations.

Accepted Answer

Soonicorns. Startups likely to become unicorns soon are called soonicorns. The term is commonly used in startup and business news.

Question 21

After how many years of successful operation can a Payment Bank be converted into a Small Finance Bank?

Accepted Answer

5. As per RBI guidelines, a payments bank can apply for conversion into a small finance bank after completing a prescribed period of successful operation. The required period is 5 years.

Question 22

RBI has released bulk deposit limits for scheduled commercial banks, regional rural banks, small finance banks, and local area banks. What is the minimum limit of bulk deposits for local area banks?

Accepted Answer

Rs 1 crore. RBI has prescribed different bulk deposit thresholds for different categories of banks. For local area banks, the minimum bulk deposit limit is Rs 1 crore.

Question 23

Foreign investors have pumped in around how many rupees into the Indian capital markets in August 2021?

Accepted Answer

14,500. The question asks for the approximate amount pumped in by foreign investors into Indian capital markets in August 2021. The correct reported figure matches 14,500 rupees (typically understood as crore rupees in such GA questions).

Question 24

What is the full form of UPI?

Accepted Answer

Unified Payments Interface. UPI stands for Unified Payments Interface. It is India’s real-time payment system that allows instant bank-to-bank transfers through mobile applications.

Question 25

The presidency banks were amalgamated into a single bank, the Imperial Bank of India, in

Accepted Answer

1921. The Bank of Bengal, Bank of Bombay, and Bank of Madras were amalgamated to form the Imperial Bank of India in 1921. This is a standard banking history fact asked in banking awareness.

Question 26

What is the primary goal of cross-selling in bancassurance?

Accepted Answer

To offer additional products that meet customer needs. In bancassurance, cross-selling means offering additional, relevant products to existing customers, such as insurance along with banking services. The aim is to satisfy customer needs while increasing business.

Question 27

What is the budget allocation for the Ministry of Agriculture and Farmers Welfare in the 2024–25 Budget?

Accepted Answer

₹1,32,469.86 crore. The 2024–25 Union Budget allocated ₹1,32,469.86 crore to the Ministry of Agriculture and Farmers Welfare. This reflects the government’s continued emphasis on agriculture and farmer support. Therefore, the correct option is ₹1,32,469.86 crore.

Question 28

According to RBI guidelines, the term "bulk deposit" is used for a single rupee term deposit of

Accepted Answer

₹1 crore and above. As per RBI guidelines, a bulk deposit refers to a single rupee term deposit of ₹1 crore and above. This threshold is used to identify large-value deposits. Therefore, the correct answer is ₹1 crore and above.

Question 29

Which type of bank account is primarily used by businessmen?

Accepted Answer

Current Account. Current accounts (also called Demand Deposit accounts) are designed for businessmen and companies. They allow unlimited transactions, offer overdraft facilities, and generally pay no interest, unlike savings accounts.

Question 30

In NEFT, Unique Transaction Reference (UTR) is a ___ digit number.

Accepted Answer

16. In NEFT (National Electronic Funds Transfer), each transaction is assigned a Unique Transaction Reference (UTR) number that is 16 characters/digits long, used for tracking and reconciliation.

Question 31

What is the minimum monthly investment amount required to start a SIP (Systematic Investment Plan)?

Accepted Answer

₹1,000. The typical minimum SIP (Systematic Investment Plan) amount for most mutual funds in India is ₹500, though some funds set it at ₹1,000. Source marks ₹1,000 as the answer.

Question 32

Which among the following are the participants in UPI transactions?

Accepted Answer

All of these.. A UPI transaction involves all of these: the Payer's PSP (Payment Service Provider), the Payee's PSP, the issuer bank, the beneficiary bank, and NPCI as the central switch. All are participants in every UPI transaction.

Question 33

As per RBI guidelines, payments banks can accept deposits up to how much per customer?

Accepted Answer

₹1,00,000. As per RBI's original guidelines for payments banks, they can accept demand deposits up to ₹1,00,000 per individual customer. (In 2023, the limit was raised to ₹2,00,000, but question likely refers to original limit.)

Question 34

How much overdraft amount is available to one account holder of PMJDY?

Accepted Answer

₹10,000. Pradhan Mantri Jan Dhan Yojana (PMJDY) provides an overdraft (OD) facility of up to ₹10,000 to one account holder per household (typically the woman of the household), subject to satisfactory 6-month account history.

Question 35

Unique Transaction Reference (UTR) number is a how-many character code?

Accepted Answer

22. The Unique Transaction Reference (UTR) number is a 22-character alphanumeric code used by NEFT and RTGS transactions to uniquely identify each financial transaction in India.

Question 36

Which bank recently launched UPI QR code interoperability?

Accepted Answer

HDFC Bank. HDFC Bank launched UPI QR code interoperability, enabling customers to use HDFC Bank's UPI QR codes interchangeably with other banks' QR codes, simplifying digital payments.

Question 37

Which bank launched the Digi Smart credit card?

Accepted Answer

Standard Chartered Bank. Standard Chartered Bank launched the Digi Smart credit card, designed for digitally active customers with rewards on online spending.

IBPS PO General Awareness: Banking Services questions with solutions

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