Previous Year Repeated PSC Questions - Banking & Finance
This post lists some of the previous years' repeated PSC questions and answers on 'Banking & Finance.'

Banking & Finance

History


  • The first bank in Kerala is – Nedungadi Bank. (Previous Year PSC Question – Stenographer, Drugs & Pharmaceuticals Ltd, 2014)
    • Name the first private bank in Kerala – Nedungadi Bank. (Previous Year PSC Question – Junior Instructor MRAC, 2018)
  • Sri. Appu Nedungadi is the founder of Kerala's first Private Bank, "Nedungadi Bank". Later the bank is merged with _________ – Punjab National Bank. (Previous Year PSC Question – Welfare Organiser, 2022)
  • –––––––––– was founded in July 1948 under the Industrial Finance Corporation Act of 1948, with the primary goal of providing long and medium-term financing to big industrial firms – IFCI.  (Previous Year PSC Question – Assistant Manager KSCB, 2024)
  • When Indian Banking Act came into force? 1949. (Previous Year PSC Question – Junior Clerk Cooperative Service Exam Board, 2014, Junior Clerk, Primary Co-operative Banks, 2016, Lab Technical Assistant, Banking Assistance(VHSE) 2015)
  • In 1955, Imperial Bank of India was nationalized and renamed as – State Bank of India. (Previous Year PSC Question – Junior Instructor, 2016)
  • IDBI established in – 1964. (Previous Year PSC Question – Lab Technical Assistant, Banking Assistance(VHSE) 2015)
  • Total number of Nationalized Banks in India – 12.* (Previous Year PSC Question – Civil Excise Officer(Women Excise Guard), 2014)
  • How many Banks were first Nationalized – 14. (Previous Year PSC Question – Junior Clerk Cooperative Service Exam Board, 2014, Laboratory Technical Assistant – Banking Assistance(VHSE) 2015)
    • The year in which the fourteen Indian Commercial Banks were nationalized – 1969. (Previous Year PSC Questions: Junior Instructor(Electrician), Industrial Training, 2017)
  • The 14 major Indian banks were nationalized during which five-year plan – Fourth. (Previous Year PSC Question – Assistant to Pharmacognosy Officer - Ayurveda Medical Education, 2019)
  • Which of the following institutions was established under an act of parliament in 1988 ? National Housing Bank. (Previous Year PSC Question – Assistant Town Planner, Town & Country Planning, 2015)
  • National Housing Bank established during the – 7th Five Year Plan.  (Previous Year PSC Question – Deputy Manager, 2023)
  • Export Import Bank of India was set up in 1982 as a wholly-owned undertaking of the – Government of India. (Previous Year PSC Question – Assistant Manager (F& A), Kerala State Co-operative Consumer’s Federation Ltd, 2014)
  • The oldest stock bank in India – Allahabad Bank.  (Previous Year PSC Question – Forester (Section Forest Officer)/ Civil Excise Officer, 2019)
  • The first Bank in India got the ISO certificate – Canara Bank. (Previous Year PSC Question – Beat Forest Officer, 2016)
  • The first Mahila bank of the country named Bharatiya Mahila Bank was inaugurated in – 2013. (Previous Year PSC Question – Assistant Manager (F& A), Kerala State Co-operative Consumer’s Federation Ltd, 2014)
  • The Government of India proposed the merger of how many banks to create India’s third-largest Bank? 3. (Previous Year PSC Question – Junior Clerk, Cooperative Service Exam Board, 2019)
  • 2020 ഏപ്രിൽ 1-ലെ ബാങ്ക് ലയനത്തിൽ പഞ്ചാബ് നാഷണൽ ബാങ്കിൽ ലയിച്ച ബാങ്കുകൾ ഏതൊക്കെയാണ് ? ഓറിയന്റൽ ബാങ്ക് ഓഫ് കോമേഴ്സും യുണൈറ്റഡ് ബാങ്ക് ഓഫ് ഇന്ത്യയും.  (Previous Year PSC Question – LDC/Sergeant, 2023)


Banking Terminologies


  • KYC in banking terminology means – Know Your Customer. (Previous Year PSC Question – Junior Clerk, Primary Co-operative Banks, 2016;Clerk/Cashier, Kerala Bank, 2024)
  • In banking ATM stands for – Automatic Teller Machine. (Previous Year PSC Question – Excise Guard /Women Excise Guard, Excise [Palakad, Thrissur], 2014)
  • PIN banking terminology means – Personal Identification Number. (Previous Year PSC Question – Junior Clerk, Primary Co-operative Banks, 2016)
  • IFSC in banking terminology means – Indian Financial System Code. (Previous Year PSC Question – Junior Clerk, Primary Co-operative Banks, 2016; Clerk/Cashier, Kerala Bank, 2024)
  • Alphanumeric code that identifies a bank-branch participating in the interbank electronic fund transfer – IFSC. (Previous Year PSC Question – Lab Technical Assistant, Banking Assistance(VHSE) 2015)
  • In Banking, LBS refers to – Lead Bank Scheme. (Previous Year PSC Question – Lab Technical Assistant, Banking Assistance(VHSE) 2015)
  • Below given statements are on the lead bank scheme. you are requested to identify the wrong statement. (Previous Year PSC Questions: Clerk/Cashier, Kerala Bank, 2024)
    • (A) It was introduced by Government of India in December 1969
    • (B) It is introduced based on the findings of the study group headed by Prof. D. R. Gadgil in 1969
    • (C) The scheme has Block level Bankers’ Committee and district Consultative Committee
    • (D) The district Collector is the Chairman of the district Consultative Committee
  • NPA in banking terminology means – Non-Performing Asset. (Previous Year PSC Question – Junior Clerk, Primary Co-operative Banks, 2016)
  • The assets of the bank which does not generate any income – Non-Performing Asset. (Previous Year PSC Question – Lab Technical Assistant, Banking Assistance(VHSE) 2015)
  • What is ASBA in E-invest?Applications supported by Blocked Amount. (Previous Year PSC Question – Lab Technical Assistant, Banking Assistance(VHSE) 2015)
  • CORE in CORE Banking stands for – Centralized Online Real-time Exchange. (Previous Year PSC Question – Data Entry Operator-Co-operative Banks/Societies, 2018; Deputy Finance Manager, 2023)
    • What is regarded as the hub or back-end system that connects the various branches of a bank to process transactions and enable operations? CORE Banking. (Previous Year PSC Question – Assistant Information Officer, 2024)
  • Choose the most appropriate answer. (Previous Year PSC Question – (Accountant (KSIE), 2024)
    • The CORE banking Services includes:
    • (i) To make balance enquiries
    • (ii) To withdraw cash from the account by tendering a cheque
    • (iii) To obtain settlement of account
    • (iv) To transfer fund
      • (A) (i) only                         (B) (ii) and (iii) only
      • (C) (iii) only                       (D) (i), (ii), (iii) and (iv)
  • NEFT and RTGS in banking terminology speaks of – Electronic Fund transfer from bank to bank. (Previous Year PSC Question – Secretary Cooperative Service Exam Board 2014)
  • In E-Banking RTGS stands for – Real-Time Gross Settlement. (Previous Year PSC Question – Lab Technical Assistant, Banking Assistance(VHSE) 2015)
    • In RTGS, UTR number is a ––––––––––– Character code used to identify a transaction – 22. (Previous Year PSC Question – Assistant Information Officer, 2024)
  • Consider the following statements.   (Previous Year PSC Questions – Clerk/Cashier, Kerala Bank, 2024)
    • (A) The processing speed of NEFT is faster than IMPS
    • (B) There’s no maximum transfer limit in RTGS
    • (C) Immediate mobile Payment Service is the full form of IMPS
    • (D) All are correct
  • Which Code is necessary for transferring fund from India to abroad? SWIFT. (Previous Year PSC Question – (Accountant (KSIE), 2024)
  • SWIFT stands for – Society for Worldwide Interbank Financial Telecommunications.  (Previous Year PSC Questions – Clerk/Cashier, Kerala Bank, 2024)
  • CAmElS Rating of Banks means – Capital adequacy, Asset quality, management capability, Earnings, liquidity and Sensitivity to market risk. (Previous Year PSC Questions – Clerk/Cashier, Kerala Bank, 2024)
  • Expand ‘SARFAESI' – Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest. (Previous Year PSC Questions – Clerk/Cashier, Kerala Bank, 2024)


General


  • The word ‘Bank’ is deemed to have originated from which of the following? (Previous Year PSC Questions: Clerk/Cashier, Kerala Bank, 2024)
    •  (A) Banko     (B) Banco         (C) Bancho       (D) Bankho
  • The relationship between a banker and a customer is – (Previous Year PSC Questions: Clerk/Cashier, Kerala Bank, 2024)
    • (A) Trustee and beneficiary        (B) Debtor and creditor
    • (C) Principal and agent               (D) All of the above
  • In banking, ‘Safety’ is treated as a cardinal principle of lending. Which of the following statement/s best explain it?  (Previous Year PSC Questions: Clerk/Cashier, Kerala Bank, 2024)
    • 1. It is borrower’s capacity to pay.
    • 2. It is borrower’s willingness to pay.
    • 3. It is borrower’s capacity to income generation.
    • 4. It is borrower’s not using loan for consumption purpose.
      • (A) 2, 3 and 4 only                 (B) 1, 3 and 4 only 
      • (C) 1, 2 and 3 only                 (D) All of them
  • The study and collection of paper currency and banknotes is – Notaphily. (Previous Year PSC Questions: Computer Assistant, 2016)
  • Banknote of one rupee issued by – Government of India. (Previous Year PSC Question – Clerk/Cashier, 2015)
  • Who is the signatory on the one rupee note of India? Finance Secretary of Ministry of Finance. (Previous Year PSC Question – Excise Guard /Women Excise Guard, Excise (Palakad, Thrissur), 2014)
  • Where is the headquarters of World Bank?  Washington. (Previous Year PSC Question – LD Typist/ Clerk Typist/ Typist Clerk 2016)
  • Headquarter’s of Asian Development Bank – Manila, Philippines. (Previous Year PSC Question – Excise Guard /Women Excise Guard, Excise (Palakad, Thrissur), 2014, Junior Clerk, Primary Co-operative Banks, 2016)
  • BRICS leaders signed the agreement to establish a New Development Bank at the summit held in – Fortaleza, Brazil (2014). (Previous Year PSC Question – Women Civil Excise Officer, 2018)
  • The headquarter of the New Development Bank is in – Shanghai. (Previous Year PSC Question – Data Entry Operator, 2016)
  • Who among the following is the first Chairman of the New Development Bank (NDB) – K.V. Kamath. (Previous Year PSC Questions: HSST Mathematics, 2016)
  • Which of the following is the Multilateral Bank operated by BRICS states? (PreviousYear PSC Question – Electrician Grade II, Kerala Ceramics, 2015)
    • (A) Development Credit Bank (B) National Development Bank (C) New Development Bank (D) Asian Development Bank
  • Following statements are on the National Credit Council. You are requested to identify the wrong statement.  (Previous Year PSC Questions: Clerk/Cashier, Kerala Bank, 2024)   
    • (A) The National Credit Council was established in 1967
    • (B) It was the result of adoption of ‘social control’ over banks as a policy measure
    • (C) It recognised the importance of the commercial banks’ role as complementary to co-operatives in agriculture and rural credit
    • (D) It led to the formation of National Bank for Agriculture and Rural development (NABARD)
  • Which one of the following public sector banks emblem figures a dog and the words Faithful’ Friendly’ in it? (Previous Year PSC Questions: Assistant Transport Officer, KSTRC, 2016)
    • (A) Canara Bank (B) Punjab National Bank (C) State Bank of India (D) Syndicate Bank
  • _____ Banks are also known as Investment Banks – Industrial Banks. (Previous Year PSC Question – Junior Clerk, Primary Co-operative Banks, 2016)
  • Name the robot has been introduced by Kumbakonam based City Union Bank to Improve customer Service – Cub-Lakshmi. (Previous Year PSC Question – Civil Excise Officer , 2017)
  • Which one of the following is not a recommendation of the Committee on the Financial System (Narasimhan Committee 1)?(Previous Year PSC Questions: Clerk/Cashier, Kerala Bank, 2024)   
    • (A) Reaching of 8% capital adequacy ratio in banks
    • (B) Setting up of asset reconstruction fund
    • (C) The banks to reduce their NPAs to 3% by 2002
    • (D) Deregulation of interest rates
  • KIIFB stands for– Kerala Infrastructure Investment Fund Board. (Previous Year PSC Questions: Assistant Manager(Production)-Pharmaceutical Corporation(IM) Kerala Ltd, 2019)
  • ____ was appointed to study about there organization of the Co-operative banking system in Kerala – Renjith Committee. (Previous Year PSC Question – Clerk/Cashier, 2015)
  • The Kerala State Co-operative Bank was focused in the year – 1956. (Previous Year PSC Question – Junior Clerk, Primary Co-operative Banks, 2016)
  • Kerala Gramin Bank Sponsored by – Canara Bank. (PreviousYear PSC Question – Laboratory Technical Assistant – Banking Assistance(VHSE) 2015)
  • Whose credit card is SAMRIDHI CARD?  Kerala State Co-operative Bank. (PreviousYear PSC Question – Secretary, Primary Co-operative Societies 2015)
  • Which social reformer of Kerala started an Agricultural Bank namely “Uralunkal Aikyananya Sangham”? Vagbhadananda. (Previous Year PSC Question – Junior Instructor-Wireman, Industrial Training, 2016)
  • The Author of ”People's bank for Northern India” is – Mr. Duperman. (Previous Year PSC Question – Clerk/ Cashier, District Co-operative Bank, 2015, Data Entry Operator-Co-operative Banks/Societies, 2018)
  • എത്ര ജില്ലാ സഹകരണ ബാങ്കുകളെ സംയോജിപ്പിച്ചാണ് കേരളം കോ-ഓപ്പറേറ്റീവ് ലിമിറ്റഡ് രൂപീകരിച്ചത്? 13. (Previous Year PSC Question –10th Preliminary, 11/6/2022)



Banking Instruments


  • Negotiable Instrument Act was passed in – 1881. (Previous Year PSC Question – Lab Technical Assistant, Banking Assistance(VHSE) 2015)
    • Holidays are declared to banks under – Negotiable Instrument Act. (Previous Year PSC Question – Lab Technical Assistant, Banking Assistance(VHSE) 2015)
  • Essential characteristics of a negotiable instrument is/are –  (Previous Year PSC Questions: Clerk/Cashier, Kerala Bank, 2024)   
    • (A) Title       (B) Right to sue         (C) Both (A) and (B)        (D) None of the above
  • Which of the following is not considered as a Bill of Exchange drawn on a banker?  (Previous Year PSC Questions: Clerk/Cashier, Kerala Bank, 2024)       
    • (A) A cheque        
    • (B) An electronic image of a cheque in truncation        
    • (C) A cheque in the electronic form        
    • (D) Bill rediscounted by another banker
  • In the case of the general crossing of a cheque – Required two lines across the cheque.  (Previous Year PSC Questions: Clerk/Cashier, Kerala Bank, 2024)   
  • Consider the following statements and find out the correct one.  (Previous Year PSC Questions: Clerk/Cashier, Kerala Bank, 2024)   
    • (A) Bill of Exchange is an unconditional order
    • (B) In the case of a promissory note there is no notice is required to the maker
    • (C) Both (A) and (B) are correct
    • (D) None of the above
  • Which instrument represents an unsecured corporate debt of short-term maturity? Commercial paper. (Previous Year PSC Question – Assistant Information Officer, 2024)
  • Which of the following factors can directory affect the Credit Creation ability of the banks?  (Previous Year PSC Questions: Clerk/Cashier, Kerala Bank, 2024)      
    • 1. Cash Reserve Ratio.
    • 2. REPO Rate.
    • 3. Statutory liquidity Ratio.
    • 4. Inflation.
      • (A) 1 and 2 only           (B) 3 and 4 only        
      • (C) 1 and 3 only           (D) 1 and 4 only


Banking Schemes

 

  • The Prime Minister’s Scheme ‘Bank Account for All’ is known as – Jan Dhan Yojna. (Previous Year PSC Questions: – Laboratory Technical Assistant – Banking Assistance(VHSE) 2015)
  • ______ is issued by Indian public sector banks to the farmers of India –  Kisan Credit Card. (Previous Year PSC Questions: Clerk/Cashier, Kerala Bank, 2024)   
  • The ‘Rupay’ card dedicated to India by honorable President of India, Pranab Mukherjee at Rashtrapati Bhavan on – May 8th, 2014. (Previous Year PSC Questions: Laboratory Technical Assistant – Banking Assistance(VHSE) 2015)
  • Indian Domestic Card Scheme ‘Rupay’ conceived and launched by – National Payment Corporation of India. (Previous Year PSC Question – Laboratory Technical Assistant – Banking Assistance(VHSE) 2015)
  • In 1999, the Government of India started __________ to promote self-employment in rural areas by developing and skilling SHGs –  Swarna Jayanti Gram Swarozgar Yojana.  (Previous Year PSC Questions: Clerk/Cashier, Kerala Bank, 2024)   
  • __________ is a social security scheme implemented by the Government of India, which provides risk coverage of Rs. 2 Iakh for accidental death and full disability and Rs. 1 lakh for partial disability  –  Pradhan Mantri Suraksha Bhima Yojana. (Previous Year PSC Questions: Clerk/Cashier, Kerala Bank, 2024)      





Major Banks of India


  • The bank set up with the aim of giving a boost to the country’s export and import – EXIM Bank. (Previous Year PSC Question – Lab Technical Assistant, Banking Assistance(VHSE) 2015)
  • Principal Financial Institution for the promotion financing and development of Small Scale Industries – SIDBI. (Previous Year PSC Question – Lab Technical Assistant, Banking Assistance(VHSE) 2015)
  • The headquarters of SIDBI is at – Lucknow. (Previous Year PSC Question – Lab Technical Assistant, Banking Assistance(VHSE) 2015)
    • The headquarters of Small Industrial Development Bank of India (SIDBI) is located at – Lucknow. (Previous Year PSC Question – Drugs Inspector 2024)
  • Mudra Bank was launched by Prime Minister on – 8th April 2015. (PreviousYear PSC Question – Data Entry Operator- Co-operative Banks/Societies, 2019)
  • Creation of Micro Units Development Refinance Agency (MUDRA) Bank was announced with the corpus of – 20000 Crores. (Previous Year PSC Question – Tradesman-Wireman 2016)
  • Following statements are on Small Finance Banks. Identify the wrong statement.  (Previous Year PSC Questions – Clerk/Cashier, Kerala Bank, 2024)   
    • (A) SFBs are required to open at least 50% of its branches in unbanked rural centres
    • (B) Objective is to mobilise savings from unserved and underserved sections of the  population
    • (C) Small finance banks are required to extend 75% of its Adjusted Net Bank Credit to  priority sector
    • (D) It has to use high technology and low cost operating model of banking


State Bank of India


  • Imperial Bank of India is now known as – State Bank of India. (Previous Year PSC Question – Assistant Grade II, Kerala Forest Development Corporation 2016)
  • Largest public sector bank in India – State Bank of India. (Previous Year PSC Question – Lab Technical Assistant, Banking Assistance(VHSE) 2015)
  • SBI associate banks were nationalized on – 1959. (Previous Year PSC Question – Lab Technical Assistant, Banking Assistance(VHSE) 2015)
  • Name the first woman head of the State Bank of India – Arundhati Bhattacharya. (Previous Year PSC Question – Divisional Accountant, Water Authority Preliminary Exam, 2014)
  • Consider the following statements regarding the history of State Bank of India. You are requested to identify the wrong statement.  (Previous Year PSC Questions: Clerk/Cashier, Kerala Bank, 2024)
    •  (A) The Bank of Calcutta was set up by the English East India Company in 1806
    • (B) The Bank of Bengal, Bombay and Madras were governed by royal charters and had private share holdings
    • (C) Bank of Bengal was formed in 1809 to take over Bank of Calcutta
    • (D) The Bank of Bengal, Bombay and Madras were having the right to issue notes


NABARD


  • NABARD stands for – National Bank for Agriculture and Rural Development. (Previous Year PSC Question – Clerk/Cashier, 2015)
  • National Bank for Agriculture and Rural Development was established in – 1982. (Previous Year PSC Question – Electrician/ Pump Operator, Revenue, 2015)
  • NABARD was setup on – 12/7/1982.  (Previous Year PSC Questions – Clerk/Cashier, Kerala Bank, 2024)
  • The Chairman of NABARD is appointed by – Govt. of India. (Previous Year PSC Question – Junior Clerk, Primary Co-operative Banks, 2016, Lab Technical Assistant, Banking Assistance(VHSE) 2015)
  • Which of the following bodies regulates the Regional Rural Banks? – NABARD. (Previous Year PSC Question – Secretary Co-operative Societies/Banks, 2019)
  • Of the following, which is the first Regional Rural Bank in India? (Previous Year PSC Questions: Clerk/Cashier, Kerala Bank, 2024)
    • (A) Saurashtra Gramin Bank, Gujarat
    • (B) Madhyanchal Gramin Bank,Madhya Pradesh
    • (C) Bangiya Gramin Vikas Bank, West Bengal
    • (D) Prathama Bank, Uttar Pradesh
  • റൂറൽ ഇൻഫ്രാസ്ട്രക്ച്ചർ ഡെവലൊപ്മെന്റ് ഫണ്ട് (RIDF) നിയന്ത്രിക്കുന്നത് ഏത് ബാങ്കാണ്? NABARD. (Previous Year PSC Question – Civil Police Officer, 2022)


Payment Banks


  • The following are features of a payment banks. Identify the wrong one. (Previous Year PSC Questions – Clerk/Cashier, Kerala Bank, 2024)
    • (A) It can accept only savings and current deposits
    • (B) It is not covered by the Banking Ombudsman Scheme
    • (C) It need not issue passbooks for the deposit accounts
    • (D) It cannot lend to any person
  • Which bank has tied up with Bajaj Alliance Life insurance to provide insurance to all – India Post Payment Bank. (Previous Year PSC Question – Junior Clerk, Cooperative Service Exam Board, 2019)
  • India Post Payments Bank, IPPB has partnered with which social media platform to promote financial literacy? Koo. (Previous Year PSC Question – Deputy Manager, 2023)

* Updated according to the current statistics
** First RBI Governor - Osborne Smith

Thanks for reading!!!