Banking and Financial Awareness MCQs

Solved MCQs on NEFT, RTGS, IFSC and MICR codes, cheques, NPAs, deposit insurance, regulators (IRDAI, PFRDA, SEBI), RuPay, CIBIL and other banking terms for IBPS and SBI exams.

1. 1

   NEFT stands for:

   ANet Electronic Fund TransactionBNational Exchange Fund TransferCNational Electronic Funds TransferDNew Electronic Financial Transfer

   Correct answer: C. National Electronic Funds Transfer

   NEFT is an RBI-run system for one-to-one electronic transfers between bank accounts.

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2. 2

   RTGS (Real Time Gross Settlement) is mainly meant for transfers of at least:

   A₹1 lakhB₹50,000C₹2 lakhD₹10,000

   Correct answer: C. ₹2 lakh

   RTGS settles each transaction individually and immediately; the minimum amount is ₹2 lakh. Smaller transfers use NEFT or IMPS.

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3. 3

   How many characters are there in an IFSC code?

   A9B10C11D12

   Correct answer: C. 11

   The 11-character IFSC has the bank code (4 letters), a 0, and a 6-character branch code.

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4. 4

   How many digits does the MICR code printed on a cheque have?

   A6B9C11D12

   Correct answer: B. 9

   The 9-digit MICR code identifies the city, bank and branch for cheque clearing.

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5. 5

   A cheque in India is normally valid for how long from its date of issue?

   A1 monthB3 monthsC1 yearD6 months

   Correct answer: B. 3 months

   Since 2012, cheques, drafts and pay orders are valid for three months from the date of issue.

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6. 6

   A crossed cheque (with two parallel lines on the corner) can be:

   Acashed at the counter by anyoneBencashed only abroadCused only once a yearDpaid only into a bank account

   Correct answer: D. paid only into a bank account

   Crossing tells the bank to pay the money only into an account, which makes the cheque safer.

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7. 7

   Non-Banking Financial Companies (NBFCs) in India are regulated mainly by the:

   AMinistry of Corporate Affairs aloneBSEBICRBIDIRDAI

   Correct answer: C. RBI

   The RBI registers and regulates most NBFCs under the Reserve Bank of India Act, 1934.

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8. 8

   The insurance sector in India is regulated by:

   AIRDAIBNABARDCSIDBIDPFRDA

   Correct answer: A. IRDAI

   The Insurance Regulatory and Development Authority of India regulates insurers.

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9. 9

   The National Pension System (NPS) is regulated by:

   AEPFOBPFRDACSEBIDRBI

   Correct answer: B. PFRDA

   The Pension Fund Regulatory and Development Authority oversees the NPS and pension funds.

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10. 10

    Bank deposits are insured by the DICGC up to what amount per depositor per bank?

    A₹1 lakhB₹2 lakhC₹5 lakhD₹10 lakh

    Correct answer: C. ₹5 lakh

    Since February 2020, the Deposit Insurance and Credit Guarantee Corporation covers up to ₹5 lakh (principal and interest) per depositor in each bank.

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12. 11

    The Pradhan Mantri Jan Dhan Yojana for bank accounts for all was launched in:

    A2012B2014C2016D2018

    Correct answer: B. 2014

    PMJDY was launched on 28 August 2014 to give every household a basic bank account.

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13. 12

    ATM stands for:

    AAny Time MoneyBAutomated Teller MachineCAccount Transaction MachineDAutomatic Transfer Machine

    Correct answer: B. Automated Teller Machine

    An Automated Teller Machine lets customers withdraw cash and check balances without a cashier.

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14. 13

    An overdraft facility allows a customer to:

    Aopen two accountsBdeposit foreign currencyCavoid paying interestDwithdraw more money than the account balance, up to a set limit

    Correct answer: D. withdraw more money than the account balance, up to a set limit

    Interest is charged only on the amount overdrawn and for the period it is used.

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15. 14

    A loan is generally classified as a Non-Performing Asset (NPA) when interest or principal remains overdue for more than:

    A30 daysB60 daysC90 daysD180 days

    Correct answer: C. 90 days

    Under RBI norms a term loan becomes an NPA when payments are overdue for more than 90 days.

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16. 15

    Mutual funds in India are regulated by:

    AAMFIBIRDAICRBIDSEBI

    Correct answer: D. SEBI

    SEBI regulates mutual funds. AMFI is the industry association, not the regulator.

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17. 16

    Which of these is a priority sector for bank lending in India?

    ALuxury housingBAgricultureCGold importsDShare trading

    Correct answer: B. Agriculture

    Agriculture, micro and small enterprises, education and affordable housing are among the priority sectors.

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18. 17

    The Currency Note Press of the Government of India is located at:

    ANashikBNoidaCKolkataDHyderabad

    Correct answer: A. Nashik

    The Currency Note Press at Nashik, Maharashtra, prints banknotes; Dewas also has a Bank Note Press.

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19. 18

    RuPay is:

    Aa foreign credit card companyBa type of savings accountCIndia's domestic card payment networkDan RBI bond

    Correct answer: C. India's domestic card payment network

    RuPay was launched by the National Payments Corporation of India as an Indian alternative to international card networks.

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20. 19

    A CIBIL credit score ranges from:

    A0 to 100B100 to 500C300 to 900D500 to 1,000

    Correct answer: C. 300 to 900

    Scores closer to 900 show a better credit history and make loans easier to get.

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21. 20

    A bearer cheque can be cashed by:

    Aonly a government officerBonly after 30 daysConly the account holderDwhoever presents it at the bank

    Correct answer: D. whoever presents it at the bank

    A bearer cheque is payable to whoever holds it, so it is less safe than an order or crossed cheque.

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