Banking Awareness Quiz – Set 1 – History of Banking in India

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Topic: History of Banking in India

Number of Questions: 15

1. Which is the first bank of a joint stock variety in India?
   A) Bank of Hindustan
   B) Bank of Bengal
   C) Bank of Bombay
   D) Bank of Madras
   
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     Option C
   Explanation: The first bank of a joint stock variety was Bank of Bombay, established in 1720 in Bombay. It failed in 1770
2. Which of the following is the first ‘Presidency bank’ in India?
   A) Bank of Hindustan
   B) Bank of Bengal
   C) Bank of Bombay
   D) Bank of Madras
   
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     Option B
   Explanation: The first ‘Presidency bank’ was the Bank of Bengal established in Calcutta on June 2, 1806
3. The three presidency banks in India were amalgamated into which bank?
   A) State Bank of India
   B) Imperial Bank of India
   C) Reserve Bank of India
   D) Allahabad Bank
   
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   Option B
   Explanation: The three presidency banks were amalgamated into a single bank, the Imperial Bank of India
4. The three presidency banks in India were amalgamated into Imperial Bank in which year?
   A) 1935
   B) 1921
   C) 1905
   D) 1908
   
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   Option B
   Explanation: The three presidency banks were amalgamated into a single bank, the Imperial Bank of India, in 1921. The Imperial Bank of India also functioned as a central bank prior to the establishment of the Reserve Bank in 1935.
5. Which of the following is the first Indian owned bank?
   A) Punjab National Bank
   B) Indian Bank
   C) Bank of India
   D) Allahabad Bank
   
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   Option D
   Explanation: The first Indian owned bank was the Allahabad Bank set up in Allahabad in 1865, the second, Punjab National Bank was set up in 1895 in Lahore, and the third, Bank of India was set up in 1906 in Mumbai.
6. In which year State Bank of India was formed?
   A) 1947
   B) 1950
   C) 1955
   D) 1949
   
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   Option C
   Explanation: 1955
7. Which bank was merged with ten major banks associated with the former princely states to form State Bank of India?
   A) Allahabad Bank
   B) Imperial Bank of India
   C) Bank of Lahore
   D) Bank of India
   
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   Option B
   Explanation: In 1955 State Bank of India was formed by amalgamating the Imperial Bank of India with the ten major banks associated with the former princely states. (The ten major state-associated banks were the State Bank of Saurashtra, Bank of Patiala, Bank of Bikaner, Bank of Jaipur, Bank of Rajasthan, Bank of Indore, Bank of Baroda, Bank of Mysore, Hyderabad State Bank, and Travancore Bank.)
8. When was State Bank of India merged with Bhartiya Mahila Bank?
   A) April 01, 2016
   B) July 01, 2017
   C) April 01, 2017
   D) July 01, 2016
   
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   Option C
   Explanation: On April 01, 2017 the remaining 5 State Bank associate banks and Bharatiya Mahila Bank were merged with SBI.
9. Before the formation of RBI, which bank functioned as the banker to the Government?
   A) Allahabad Bank
   B) Imperial Bank of India
   C) State Bank of India
   D) Bank of Madras
   
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   Option B
   
10. How many banks were nationalized in 1969?
    A) 06
    B) 08
    C) 16
    D) 14
    
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    Option D
    
11. How many banks were nationalized in 1980?
    A) 04
    B) 05
    C) 06
    D) 07
    
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    Option C
    
12. Which of the following is the first Regional Rural Bank?
    A) Saurashtra Gramin Bank
    B) Prathama Grameen Bank
    C) Pallavan Grama Bank
    D) Saptagiri Grameena Bank
    
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    Option B
    Explanation: The first Regional Rural Bank “Prathama Grameen Bank”/Prathama Bank was set up on October 2, 1975.
13. Which of the following is the sponsor Bank of Prathama Bank?
    A) Dena Bank
    B) Syndicate Bank
    C) Allahabad Bank
    D) Punjab National Bank
    
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    Option B
    Explanation: Sponsor Bank- Syndicate Bank- Head Quarters of Prathama Bank- Moradabad
14. Reserve Bank of India was formed as per recommendation of which committee?
    A) Hilton Young Commission
    B) Deshmukh Commission
    C) Keynes Commission
    D) Purshotamdas Thakurdas Commission
    
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    Option A
    Explanation: In 1926, the Royal Commission on Indian Currency and Finance (Hilton Young Commission) recommended the formation of Central Bank i.e the Reserve Bank of India.
15. RBI was formed as a ______ institution
    A) nationalised
    B) shareholders
    C) limited
    D) government
    
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    Option B
    Explanation: The RBI Act came into force on January 1, 1935. The RBI was inaugurated on April 1, 1935 as a shareholders’ institution. The RBI was nationalized on January 1, 1949.

 

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