Important Reasoning Classes for Banking Exams/Railway Exams – Most Important Reasoning

Important Reasoning – Class 1

Important Reasoning – Class 2


Important Reasoning – Class 3


Important Reasoning – Class 3


Banking Questions and answer on banking awareness for competitive exams.

Q1- Which of the following are functions of foreign bank?

a. remitting money from one country to another.
b. discounting of foreign bills.
c. buying and selling of metals.
d. helping in import and export trade.

Ans– All of the above

Q2-Which of the following has most of the bank branches?

a. State Bank of India


c. ICICI   Bank

d. Allahabad Bank

Ans- State Bank Of India

Q3- National stock exchange is located –

a. Mumbai

b.New Delhi

c. Banglore

D. Chennai

Ans- Mumbai

Q4- What does the M in M-banking stands for?

a. Money

b. Mobile

c. M- Pesa

d. computer

Ans- Mobile

Q5-Where is the head quarter of world Bank?

a.Washington D.C.

b. Geneva

c. New Delhi

d. London

Ans– Washington D.c

Q7- The government had made Aadhaar mandatory for opening bank accounts as well as for any financial transaction of __________.

a.100000 and above

b. 200000 and above

c. 50000 and above

d. 60000 and above

Ans– 50000 and above

Q8-  As per which act, holidays are provided in the banks?

a. RBI act
b. Banking regulation act
c. As per orders of govt.
d. Banking nationalization act.

Ans– Banking Regulation Act

Q9-Kotak Bank ties up with __________ to make a digital payment.

a. Redmi Xiaomi

b. Samsung

c. Nokia

d. Apple

Ans– Samsung

Q10- The Indian person who received the Nobel Prize in Economic?

a. Amrtya Sen

b. C. V. Raman

c. Rabindra Nath Tagore

d. Dr. Radha Krishnan

Ans. Amrtya Sen

Q11- Where is the head quarter of Insurance Regulatory and Development Authority (IRDA)?

a. Delhi

b. Mumbai

c. Hyderabad

d. Chennai

Ans- Hyderabad

Q12- Yes Bank has committed __________ to fund first Sewage Treatment Plant (STP) in Varanasi.

a.150 crore

b. 156 crore

c. 160 crore

d. 200 crore

Ans- 156 crore

Q13- When was RBI established?

a. 1905

b. 1935

c. 1940

d. 1955

Ans- 1935

Q14-  Merchant banking in India is governed by:-

b. RBI
d. ministry of finance


Q15- Which bank Aid to Armed Forces recently?

a. ICICI Bank

b. HdFC Bank

c. SBI Bank

d. TNB Bank

Ans- ICICI Bank

Q16- If you wish to purchase US dollars to travel abroad, you will approach:-

a. ministry of finance
b. US embassy
c. any bank branch authorized for such activity
d. RBI

Ans- any bank branch authorized for such activity

Q17- What is a Repo Rate?

a. It is a rate at which RBI sell government securities to banks

b. It is a rate at which banks borrow rupees from RBI

c. It is a rate at which RBI allows small loans in the market

d. It is a rate which is offered by Banks to their most valued customers or prime customers

Ans- It is a rate at which banks borrow rupees from RBI

Q19- In India, Micro finance development and Equity fund is maintained by-

a. Small industries development Bank of India(SIDBI).

b. RBI(Reserve bank of India).

c. Nabard(National bank for Agriculture and rural development).

d. CII(Confederation of industries in India).

Ans- Small industries devlopment bank of India (SIDBI)

Q20- Which are the following rates are decided by the RBI is called “Policy Rate”?

A. Cash reserve ratio.

B. Lending rate.

C. Bank rate.

D. Deposite rate.

Ans- Cash reserve ratio

Q21- Whenever RBI does some Open Market Operation Transaction, actually it wishes to regulate which of the following? 

a. Inflation only

b. liquidity in economy

c.Borrowing powers of the banks

d. Flow of Foreign Direct Investments

Ans- Inflation only

Q22- ‘kfw’ group released another instalment of its financial aid to India.’kfw’ is an organisation/bank base in;

a. France.

b. Japan.

c. Germany.

d. China.

Ans- Germany

Q24- Which bank issued the Sovereign Gold Bonds 2017-18 – Series-III recently?

a. SBI


c. RBI



Q25- Whenever RBI does some Open Market Operation Transaction, actually it wishes to regulate which of the following?

a. Inflation only

b.liquidity in economy

c. Borrowing powers of the banks

d.Flow of Foreign Direct Investments

Ans- Liquidity in economy

Q26- Wholesale banking is also called,

i)Corporate banking.
ii)Commercial banking

A. only i.

B. only ii.

C. both i and ii.

D. None of these.

Ans- both i and ii

Q27- Capital Market Regulator is—

a. RBI


c. NSE



Q 28- Interest payable on savings bank accounts is-

a. decided by banks without following any conditions by RBI.

b. not regulated by RBI.

c. regulated by central government.

d. decided by banks following the guidelines of RBI

Ans- Decided by Bankd following the guidlines of RBI

Q29- If the rate of inflation increases then the-

A. purchasing power of money increases.

B. purchasing power of money decreases.

C. purchasing power of money remains uneffected.

D. None of these.

Ans- purchasin power of money decreases

Q30- FDI refers to—

a. Fixed Deposit Interest

b. Fixed Deposit Investment

c. Foreign Direct Investment

d. Future Derivative Investment

Ans- Foreign Direct Investment

Q31- Which of the following launches ‘Eazy Connect’ which will extend online customer service to social media platforms?

a. Tata AIA Life

b. Exide Life Insurance

c. IDBI Federal Life Insurance

d. Bajaj Allianz Life Insurance

Ans- Tata AIA Life

Q32-What is Call Money ?

a. Money borrowed or lent for a day or over night

b.Money borrowed for more than one day but upto 3 days

c.Money borrowed for more than one day but upto 7 days

d.Money borrowed for more than one day but upto 14 days

Ans- Money borrowed or lent for a day or over night 

Q33- In India additional interest rate is allowed on retail domestic term deposits for-

a. Minor citizens.

b. Women

c. Senior citizens.

d. None of these.

Ans- Senior citizens

Q34- Full form of the term “FINO” is-

a. Financial inclusion network and operations.

b. Financial inclusion news and operations.

c. Financial investment network and operations.

d. None of these.

Ans-  Financial inclusion network and operations

 Q35- The European Investment Bank (EIB) has signed how much of loan pact with India for Bangalore Metro Rail Project Phase II?

a. 300 million

b. 200 million

c. 400 million

d. 350 million

Ans- 300 million



Q36- Reserve Bank of India opens the new branch in?

a. Dehradun

b. Mumbai

c. Chennai

d. Delhi

Ans- Dehradun


Q37- The Bank of Calcutta, Bank of Bombay and Bank of Madras were merged in 1921 to form

a. Reserve Bank of India

b.Imperial Bank of India

c.Bank of India

d.Union Bank of

Ans- Imperial Bank of India 

Q38- Who is the present RBI Governor?

a. Urjit  R. Patel

b. D. Subbarao

c. Raghuram Rajan

d. YB. Reddy

Ans- Urjit R. Patel

Q 39- In comparison with Liquidity Adjustment facility (LAF), Marginal Standing Facility (MSF) has-

a. Higher Rate of Interest.

b. Lower Rate of Interest.

c. no difference in inerest rate.

d. None of these.

Ans- Higher rate of interest

Q40- Axis Bank is the new proposed name for

a. UTI

b. UCO



Ans- UTI

Q41-The Reserve Bank of India was established on ____ and nationalized on ____

a.31st March 1930, and 2nd October 1947

b.2nd October 1947, and 26th January 1952

c.1st April 1935 and 1st January 1949

d.15th August 1942, and 15th August 1947

Ans- 1st April 1935 and 1st January 1949

Q42- What is the animal on the insignia of the RBI?


b. Elephant

c. Lion

d. dog

Ans- Tiger

Q43-Which Private sector Bank launched the first EMI on Debit Cards?

a. HDFC Bank.

b. ICICI Bank.

c. Punjab National Bank.

d. Axis Bank.

Ans- ICICI Bank

Q44- Loans of very small amounts given to low income goups is called-

a. Cash credit.

b. Micro credit.

c. Simple overdraft.

d. No frills loans.

Ans- Micro Credit

Q45- Reserve bank of India (RBI) was established in-

a. 1935

b. 1938

c. 1947

d. 1948

Ans- 1935

Q46- Which is the wrong statement in case of Bank Rate?

a. Banks borrows money from the supreme banking authority.

b. Banks borrows money from the supreme banking authority by selling its financial assets.

c. Banks borrows money from the supreme banking authority by selling its Securities.

d. None of these.

Ans- Banks borrows money from the supreme banking authority by selling its Securities.

Q47- A reduction of repo rate-


a. makes expensive for scheduled banks to borrow from RBI.

b. helps RBI to get money from scheduled banks at cheaper rate.

c. helps banks to get money from RBI at cheaper rate.

d. None of these

Ans- helps RBI to get money from scheduled banks at cheaper rate

Q48- Non Banking Financial Companies (NBFCs) are financial institution that-

a. hold a banking licence.

b. does not hold a banking licence.

c. are government undertaking institutions.

d. None of these.

Ans- does not hold a banking licence.

Q49- Which organisation or group or body is the rgulator for the security markets in India?

a. RBI


c. IMF

d. CAG


Q50- First White label ATM is India is launched by-

a. Infosys.

b. Reliance Group.


d. ‎Ashok Leyland Limited


Q51- In banking the term DTL refers to;

a. Detail time limit.

b. Demand and time limit.

c. Demand and time liabilities.

d. None of these.

Ans- Demand and time liabilities.

Q52- When did the Headquarters of Reserve Bank of India (RBI) moved to Mumbai ?
a. 1937



d. 1938

Ans- 1935

Q53- The RBI does not transact the business of which State government?
a. Jammu and Kashmir

b. Maharastra

c. Andaman and Nikobar

d. West Bengal

Ans- Jammu and Kashmir

Q54-  Ad hoc Treasury Bill System of meeting budget deficit in India was abolished on –
31st March, 1998


b.31st March, 1997,

c.31st March, 1999

d.31st March, 1990

Ans- 31st March, 1997

Q55- Which state became the first state in the country to launch RBI’s e-payment system for commercial tax payers?
a. Karnataka

b. Maharastra

c. New Delhi

d. West Bengal

Q56- Which bank is known as Banker’s Bank ?
a. RBI

b. SBI



Ans- RBI

Q57- nterest payable on savings bank accounts is regulated by which bank?
a. RBI

b. SBI



Ans- RBI

Q58-What is the maximum period for which domestic term deposits are normally accepted by banks in our country?
a. 10 years

b. 15 years

c. 5 years

d. 20 years

Ans- 10 years

Q59- Whose signature is found on a 50 rupee currency note in India?
a. Governor, RBI

b. Prime Minister

c. Manager Sbi

d. Ceo Hdfc

Ans- Governor RBI

Q60-Which institution is involved mainly in granting Housing Loans?
a. HDFC,

b. SBI




Q61- In our country, till when a cheque remains valid for payment for from the date of issue?
a. 3 months

b. 6 months

c. 4 months

d. 9 months

Ans- 3 months

Q62-The Govt. of India has acquired RBI’s stake in one of the major banks of India. Which that bank?

a. SBI

b. RBI



Ans- SBI

Q63-  Crossing applies to which instrument?
a.  pass book

b. atm

c. Cheques,

d. credit card

Ans- Cheques,

Q64-  If PAN details are not provided, the TDS is deducted at which rate?
a. 10%

b. 20%

c. 30%

d. 40%

Ans- 20%

Q65- Which bodies regulates monetary policy in India?
a. RBI

b. SBI



Ans- RBI

Q66-Suvidha Fixed Deposit scheme was launched by which bank?

b. RBI


d. SBI


Q67-  How many banks were nationalized in 1969?
a. 14

b. 10

c. 15

d. 16

Ans- 10

Q68-When was the Reserve Bank of India taken over by the Government?

a. 1947

b. 1950

c. 1948

d. 1945

Ans- 1948

Q69- The highest dnomination of currency notes in circulation as legal tender in India is a present –
a. Rs. 1000

b. Rs. 2000

c. Rs. 500

d. Rs. 1500

Ans- Rs. 1000

Q70- Effective Revenue Deficit was introduced in the Union Budget of –
a. 2011-2012

b. 2010- 2011

c. 2009- 2010

d. 2011- 2012

Ans- 2011-2012

Q71-NABARD was established in the year _____ .

a 1978

b 1985

c  1982

d 1974

Ans- 1982

Q72- The headquarter of World Bank is in _______ .

a Canada

b London

c Italy

d Washington


Q73- Among the following which is the safest card for transaction ?

a) Visa

b) Maestro

c) Master

d) None of these

Ans- Maestro

Q74-India Millennium deposit Scheme was introduced by _____.


b) SBI

c) Axis

d) IOB

Ans- SBI

Q75- FRBM stands for ______.

a) Fiscal Responsibility & Budget Management

b) First Responsibility & Budget Management

c) Fiscal Responsibility & Budget Managerial

d) First Response & Budget Management

Ans- Fiscal Responsibility & Budget Management

 Q76-  Headquarter of BoB is located at

a. New Delhi 
b. Gandhi Nagar 
c. Vadodara (Baroda) 
d. None of These

Ans- Vadodara (Baroda)

Q77-  On the basis of 2014 data, Bank of Baroda is ranked _____on Forbes Global 2000 List:

a.  701 
b. 801 
c. 901 
d. None of These












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