Banking Awareness Questions for RBI Grade-B Phase-1 Exam

Just a few days are left for RBI Grade-B Phase-1 Exam. It is time to pace up your preparation of Banking Awareness for RBI Grade-B Officers. These Banking questions will also help you in preparing for other upcoming banking recruitment examination.

Q1. The Reserve Bank of India (RBI) has granted “in-principle” approval to the ________  applicants to set up small finance banks under the “Guidelines for Licensing of Small Finance Banks?

(a) 11

(b) 12

(c) 13

(d) 10

(e) 15

Q2. The minimum paid-up equity capital for small finance banks shall be———-

(a) Rs. 100 crore

(b) Rs. 200 crore

(c) Rs. 300 crore

(d) Rs. 400 crore

(e) Rs. 500 crore  

Q3. Reserve Bank of India has granted the in-principle licence for small finance banks. The in-principle approval granted by RBI will be valid for a period of ________ months.

(a) 24 months

(b) 10 months

(c) 18 months

(d) 50 months

(e) 12 months

Q4. Where is the headquarter of AU Small Finance Bank?

(a) Jalandhar, Punjab

(b) Ahmedabad, Gujarat

(c) Guwahati, Assam

(d) Bengaluru, Karnataka

(e) Jaipur, Rajasthan

Q5. RBI was granted a licence to small Finance Banks for the commencement of banking business under Section ______ of the Banking Regulation Act, 1949.

(a) Section 38(3)

(b) Section 22(1)

(c) Section 47(4)

(d) Section 12(2)

(e) Section 27(5)

Q6. The foreign shareholding in the small finance bank would be as per the FDI policy for _______________ as amended from time to time.

(a) Private Sector Banks

(b) Public Sector Banks 

(c) Foreign Sector Banks 

(d) Regional Rural Banks

(e) All of the above

Q7. The promoter’s minimum initial contribution to the paid-up equity capital of such small finance bank shall at least be ———?

(a) 50 per cent

(b) 40 per cent

(c) 60 per cent

(d) 30 per cent

(e) 20 per cent

Q8. Small Finance Banks will be required to extend ________ of its ANBC to the sectors eligible for classification as priority sector lending (PSL) by the Reserve Bank.

(a) 55%

(b) 35%

(c) 75%

(d) 50%

(e) 10%

Q9. The small finance bank will be subject to all prudential norms and regulations of RBI as applicable to existing commercial banks including the requirement of maintenance of CRR and SLR. What is the present rate of SLR?

(a) 20.75 per cent

(b) 19.75 per cent

(c) 20.25 per cent

(d) 20.50 per cent

(e) 21.25 per cent

Q10. FDI is an investment made by a company or individual in one country in business interests in another country. FDI stands for-

(a) Foreign Direct Industries

(b) Fully Direct Investment

(c) Foreign Department Investment

(d) Foreign Direct Installment

(e) Foreign Direct Investment

Q11. What is the full form of ANBC in Banking?

(a) Adjusted Net Bank Cash

(b) Adjusted Net Bank Control

(c) Adjusted Net Bank Core

(d) Adjusted Net Bank Conclusion

(e) Adjusted Net Bank Credit

Q12. Who is the chairman of the board of AU Small Finance Bank?

(a) Ganeshan Neelakanta Iyer

(b) Sher Bahadur Deuba

(c) K G Karmakar

(d) Mannil Venugopalan

(e) Shashi Shekar Vempati

Q13. Who was the chairperson of the External Advisory Committee (EAC) for Small Finance Banks?

(a) Deepak Phatak

(b) MS Sahoo

(c) Usha Thorat

(d) Nachiket M Mor

(e) M Balachandran

Q14. Utkarsh Micro Finance Limited is registered with Reserve Bank of India as Non-Banking Finance Company-MFI (NBFC-MFI). Where is the registered office and corporate office of Utkarsh Micro Finance Limited?

(a) Dehradun, Uttarakhand

(b) Varanasi, Uttar Pradesh

(c) Bhagalpur, Bihar

(d) Siliguri, West Bengal

(e) Puri, Odisha

Q15. Reserve Bank of India (RBI) has granted the in-principle licence for small finance banks. Which among the following is true about small finance banks?

(a) Undertake basic banking activities of acceptance of deposits and lending 

(b) Allowed to set up subsidiaries to undertake non-banking financial activities

(c) Allowed to distribute mutual fund products, insurance products and pension products

(d) All of the above

(e) Both (b) and (a)

Banking Awareness Questions for RBI Grade-B Phase-1 Exam (Solutions)