Certainly! Here are ten challenging banking awareness quiz questions along with their answers and explanations for IBPS exams aspirants:
- Question: What does the term “CRR” stand for in banking?
- Answer: Cash Reserve Ratio
- Explanation: CRR is the percentage of total deposits that banks are required to maintain with the Reserve Bank of India (RBI) in the form of cash. It helps regulate liquidity in the banking system.
- Question: What is the primary function of the National Payments Corporation of India (NPCI)?
- Answer: To facilitate digital payments and settlements
- Explanation: NPCI manages various retail payment systems in India, including UPI, IMPS, and RuPay cards.
- Question: Which organization regulates and supervises Non-Banking Financial Companies (NBFCs) in India?
- Answer: Reserve Bank of India (RBI)
- Explanation: RBI oversees the functioning of NBFCs to ensure financial stability and consumer protection.
- Question: What is the full form of “IFSC” in the context of banking?
- Answer: Indian Financial System Code
- Explanation: IFSC is a unique alphanumeric code used to identify specific bank branches during electronic fund transfers.
- Question: What is the purpose of the “Marginal Cost of Funds-based Lending Rate (MCLR)”?
- Answer: To determine the lending rates of banks
- Explanation: MCLR is the minimum interest rate below which a bank cannot lend to its customers.
- Question: Which committee recommended the establishment of Regional Rural Banks (RRBs) in India?
- Answer: Narsimham Committee
- Explanation: The Narsimham Committee suggested the creation of RRBs to improve rural credit delivery.
- Question: What does the term “SLR” refer to in banking?
- Answer: Statutory Liquidity Ratio
- Explanation: SLR is the percentage of net demand and time liabilities that banks must maintain in the form of liquid assets like cash, gold, or government securities.
- Question: Which bank is the banker to the central government in India?
- Answer: Reserve Bank of India (RBI)
- Explanation: RBI acts as the government’s banker, manages its accounts, and handles transactions related to public debt.
- Question: What is the purpose of the “Priority Sector Lending” by banks?
- Answer: To ensure credit flow to specific sectors like agriculture, small businesses, and weaker sections
- Explanation: Banks are mandated to allocate a certain percentage of their loans to priority sectors to promote inclusive growth.
- Question: What is the maximum deposit insurance coverage provided by the Deposit Insurance and Credit Guarantee Corporation (DICGC)?
- Answer: ₹5 lakh per depositor per bank
- Explanation: DICGC insures bank deposits up to ₹5 lakh per account holder in case of bank failure.
Feel free to use these questions for your IBPS exam preparation! 🌟