Banking Awareness Quiz

Banking Awareness Quiz – Set 271: We have created many quizzes on Banking Awareness and this set is one of them. These questions are most important for banking and insurance exams. The question asked in the Banking Awareness section are based both on static banking and that to current banking in news. These Banking Awareness sets will guide you in all banking exams like IBPS Clerk, IBPS PO, SBI Clerk, SBI PO, RRB Clerk and PO and other exams. So attempt all the sets now.

1. What is the Consumer Price Index (CPI) inflation target set by Government for 5 years between 2021-26?
   A) 6%
   B) 5%
   C) 3%
   D) 4%
   
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   Option D
   Explanation: Consumer Price Index (CPI) inflation target has been kept at 4 percent with an upper tolerance limit of 6 percent and a lower limit of 2 percent for the next five years, from 2021-22 until the fiscal year 2025-26.
2. The first  empowered six-member monetary policy committee (MPC) was constituted in which year? 
   A) 2016
   B) 2014
   C) 2012
   D) 2018
   
   View answer

   Option A
   Explanation: The first MPC was constituted on September 29, 2016.
3. How many coin minting facilities are there in India?
   A) 5
   B) 3
   C) 4 
   D) 6
   
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   Option C
   Explanation: Coins are minted in four mints owned by SPMCIL. The mints are located at Mumbai, Hyderabad, Kolkata and NOIDA. The coins are issued for circulation only through the Reserve Bank in terms of Section 38 of the RBI Act.
4. The storehouses where banknotes and rupee coins are stocked on behalf of the Reserve Bank for distribution to bank branches in their area of operation are called as ____________
   A) Currency Chests
   B) Currency Depots
   C) Currency Cache
   D) Currency Repository
   
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   Option A
   Explanation: To facilitate the distribution of banknotes and rupee coins, the Reserve Bank has authorised select scheduled banks to establish currency chests. These are storehouses where banknotes and rupee coins are stocked on behalf of the Reserve Bank for distribution to bank branches in their area of operation.
5. Which Section of Reserve Bank of India Act, 1934, provides for appointment of scheduled commercial banks as agents to discharge its statutory obligation of being ‘Banker to Government’?
   A) 50
   B) 45
   C) 30
   D) 25
   
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   Option B
   Explanation:Section 45 of the Reserve Bank of India Act, 1934, provides for appointment of scheduled commercial banks as agents at all places or at any place in India, for purposes that it may specify, “having regard to public interest, convenience of banking, banking development and such other factors which in its opinion are relevant in this regard”.
6. Which type of ATMs are set up, owned and operated by non-banks?
   A) Brown Label ATM
   B) Black Label ATM
   C) Green Label ATM
   D) White Label ATM
   
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   Option D
   Explanation: ATMs set up, owned and operated by non-banks are called WLAs. 
7. Which is the clearing agency for G-Secs, issued by government?
   A) Reserve Bank of India (RBI)
   B) Clearing Corporation of India Limited (CCIL)
   C) Securities and Exchange Board of India (SEBI)
   D) Security Printing & Minting Corporation of India Ltd (SPMCIL)
   
   View answer

   Option B
   Explanation: Clearing Corporation of India Limited (CCIL)
8. An unsecured money market instrument issued in the form of a promissory note is known as __________
   A) Treasury Bills 
   B) Certificates of Deposits 
   C) Commercial Paper
   D) Repurchase Agreements
   
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   Option C
   Explanation: Commercial Paper (CP) is an unsecured money market instrument issued in the form of a promissory note.
9. Which of these digital payment methods is not available for 24x7x365?
   A) IMPS
   B) NEFT
   C) RTGS
   D) All of them are available 24x7x365
   
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   Option D
   Explanation: All of them are available 24x7x365
10. Banks providing cheque facility to their customers can issue only _______ standard cheques so as to get cleared through CTS 
    A) CTS-2010
    B) CTS-2020
    C) CTS-2015
    D) CTS-2000
    
    View answer

    Option A
    Explanation:All banks providing cheque facility to their customers have been advised to issue only ‘CTS-2010’ standard cheques. Cheques not complying with CTS-2010 standards will not be cleared through CTS clearing (updated as on June 30, 2020).

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