Banking Related Schemes MCQ Quiz - Objective Question with Answer for Banking Related Schemes - Download Free PDF

The correct answer is Only 1

In News

• The Ministry of Heavy Industries (MHI) notified guidelines for the ‘Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI)’, to promote EV manufacturing.

Key Points

• The SPMEPCI scheme requires a minimum investment of Rs 4,150 crore for setting up EV manufacturing facilities in India within 3 years of approval.
• Approved EV manufacturers are eligible for reduced customs duty of 15% for importing electric vehicles (CBUs) for 5 years.
• Concessions for up to 5 years are contingent upon meeting the prescribed Domestic Value Addition (DVA) milestones
• Applicants must meet a minimum Domestic Value Addition (DVA) requirement of 25% within 3 years and 50% within 5 years of approval.
• The scheme targets attracting international investments to make India a global EV manufacturing hub.
• It is designed to firmly establish India as a premier global destination for automotive manufacturing and innovation.
• Eligible applicants must have a minimum global automotive revenue of Rs.10,000 crore and a fixed asset base of Rs.3,000 crore.

Additional Information

• This landmark initiative is aligned with India’s national goals of achieving net zero by 2070, fostering sustainable mobility, driving economic growth, and reducing environmental impact.
• SPMEPCI
  • It is a program introduced by the Ministry of Heavy Industries (MHI) aimed at enhancing domestic production of electric passenger cars (e-4W).
  • The initiative supports India’s long-term objective of achieving net-zero emissions by 2070 and promoting sustainable transportation solutions
• Electric Vehicle (EV): A vehicle powered entirely or partially by electricity, often aimed at reducing emissions.
• Customs Duty: A tax levied on goods imported into a country, which can be reduced to promote manufacturing.
• Domestic Value Addition (DVA): The percentage of value-added components or processes done within India.
• CBU (Completely Built Unit): A fully assembled vehicle that is imported into a country, often subject to lower customs duties for EVs in the scheme.

The correct answer is 1 and 2 only.

In News

• In January 2025, the RBI released guidelines allowing eligible Small Finance Banks to apply for transition into Universal Banks.

Key Points

• Minimum operational tenure: 6 years before application.
• Net worth requirement: ₹1,000 crore for scheduled SFBs.
• Must maintain CRAR as per Basel III norms.
• Compliance with Priority Sector Lending (PSL) targets mandatory.
• Eligible SFBs can voluntarily apply for conversion.

Additional Information

• CRAR: Capital to Risk-weighted Assets Ratio. It measures a bank's capital in relation to its risk-weighted assets. 
• Basel III: International banking regulations that set capital and liquidity standards.
• Examples of SFBs: AU SFB, Ujjivan SFB, Equitas SFB.
• Universal Bank: Offers commercial banking services including loans, deposits, and investment banking.

The central government has taken a major decision in the regional rural banking sector: starting from May 1, 2025, 15 regional rural banks across the country will be closed, and the “one state, one bank” policy will be implemented through their consolidation.

Maharashtra Gramin Bank and Vidarbha Konkan Gramin Bank have been merged to form the “Maharashtra Gramin Bank.” This new bank’s headquarters is located at Kamgar Chowk in Chhatrapati Sambhajinagar.

The correct answer is 1, 2 and 3.

Key Points

• Financial inclusion is a way of offering banking services and financial solutions to each and every individual in the society without having any discrimination.
• The aim is that every person should get basic financial services irrespective of a person's income or savings.
• The main focus was to provide and engage economically unprivileged sections of the country.
• Under this scheme in 2014, Pradhan Mantri Jan Dhan Yojana was launched to give banking services to each and every household.
  • Nationalization of Banks - It is a kind of action through which an entity of the private sector is transferred to the public sector. Hence the statement 1 is correct.
  • Formation of Regional Rural Banks - Regional Rural Banks (RRBs) was established under the provisions of the Ordinance of 26 September 1975 and the RRB Act of 1976. Hence the statement 2 is correct.
    • It was done so that banking and loan services can be provided for agriculture and other rural areas. It was started on 2 October 1975.
  • Adoption of villages by Bank Branches - In India, the village adoption scheme was launched by the banks in 1960. Hence the statement 3 is correct.
    • The aim is to grow the rural economy of the country and slow down urban migration.
    • Banks adopt villages with the active participation of village panchayats.

The Correct answer is Option 1. 

Key Points

• Nationalisation of Banks: In 1969 and 1980, the nationalisation of major banks allowed the government to provide banking services to a larger portion of the population, particularly in rural areas. This was a critical step in increasing financial inclusion.

• Formation of Regional Rural Banks (RRBs): Established in 1975, RRBs were designed to provide financial services, including credit and savings, to rural populations, particularly those involved in agriculture. This step was directly aimed at serving financially excluded groups.

• Adoption of Villages by Bank Branches: This initiative focused on opening bank branches in rural areas, ensuring that banking services were accessible to even the most remote villages, thus promoting financial inclusion.

• Hence Option 1 is Correct. 

The correct answer is Bank Sakhi.Key Points

• "Bank Sakhi" is a term used for women Self-Help Group (SHG) members who are appointed as banking agents.
• These women act as a bridge between the bank and the rural population, especially women, who may not be familiar with banking procedures.
• They provide banking services like account opening, deposit, withdrawal, and other financial services to the community they serve.

Additional Information

• Self-help groups are committees that act as financial intermediaries and are typically made up of 12 to 25 local women who are between the ages of 18 and 50.
• A minimum of three members, any two of whom may work together to manage their account, should be authorized by the SHG.
• The resolution may be submitted to the bank branch together with the properly completed application form that the promoter duly introduced.
• "Bank Mitra" is a term used for business correspondents who act as agents of banks and provide basic banking services to the unbanked population.

The correct answer is ADB.

Key Points

• The  Asian Development Bank (ADB) signed a $40 million loan to Northern Arc Capital Limited (NACL) to support the livelihoods of microfinance borrowers and MSMEs in India.
• The loan is disbursed to NACL as part of ADB's ongoing COVID-19 response.
• NACL will on-lend the loan proceeds and provide guarantees to financial institutions and individual borrowers.

Additional Information

• ADB:
  • Headquarters - Mandaluyong, Philippines.
  • President - Masatsugu Asakawa. (Feb 2022)
  • Founded On - 19 December 1966.

The correct answer is The Reserve Bank of India (RBI).

Key Points

• The Reserve Bank of India released a framework to enable small value digital payments in offline mode using cards, wallets, and mobile devices.
• As per the new rules payment system operators, will be able to allow offline payments in face-to-face mode only.
• Such payments that will happen without the use of the internet or the telecom network will be capped at ₹200 per transaction.

Additional Information

• In December 2021, the Reserve Bank of India (RBI) has allowed Corporate-promoted Non-Banking Financial Companies (NBFC) to hold a stake in commercial banks.
• Reserve Bank of India (RBI) has announced the empanelment of CSB Bank, a private sector lender as an ‘Agency Bank’ in December 2021.
• List of banks recently empanelled as Agency Bank of RBI:
  • RBL Bank
  • Dhanlaxmi Bank
  • IndusInd Bank
  • Bandhan Bank
  • South Indian bank
  • Karnataka bank
  • DCB Bank
• To put restrictions on para-banks whenever vital financial metrics dip below the prescribed threshold, the Reserve Bank of India (RBI) has introduced a prompt corrective action (PCA) framework for large non-banking financial companies (NBFCs) with effect from October 2022.
  • RBI 25th Governor: Shaktikanta Das;
  • RBI Headquarters: Mumbai;
  • RBI Founded: 1 April 1935, Kolkata.

The correct answer is for the resolution of stressed assets with PSU Banks.

Important Points

• ‘Project Sashakt’ is a five-prong strategy to deal with non-performing assets.
• It was proposed by a panel led by PNB chairman Sunil Mehta.
• It was launched by the Government of India in July 2018 with an aim to resolve the problem of stressed assets with public-sector banks.
• It aims to strengthen the credit capacity, credit culture, and credit portfolio of public sector banks.
• Bad loans of up to ₹ 50 crores will be managed at the bank level, with a deadline of 90 days.
• For bad loans of ₹ 50-500 crore, banks will enter an inter-creditor agreement, authorizing the lead bank to implement a resolution plan in 180 days or refer the asset to NCLT.
• For loans above ₹ 500 crores, the panel recom­mended an independent AMC, supported by institutional funding through the AIF.

The correct answer is SBI.

Key Points

• State Bank of India (SBI) has announced a free doorstep banking service for its differently-abled customers.
• Customers can avail of this service for free thrice a month.

Additional Information

• ​Through SBI's Doorstep Banking facility, you can order a minimum of Rs 1,000 and a maximum of Rs 20,000 sitting at home.
• ICICI Bank -
  • It is India's premier banking and financial services institution.
  • It is the third largest bank in India and its headquarter is in Vadodara.
• Yes, Bank -
  • It is an Indian private-sector bank and its headquarter is in Mumbai.
  • It was founded in 2004 by Rana Kapoor and Ashok Kapoor.
• ​HDFC -
  • Its headquartered in Mumbai. 
  • It is India's largest private sector bank by assets.
  • The world's 10th largest bank by market capitalization as of April 2021.

The correct answer is 5.

State Bank of India:

• Five of SBI associate banks along with Bhartiya Mahila Bank merged with SBI on April 2017.
• 3 Presidency banks, Bank of Bombay, Bank of Madras, and Bank of Bengal were merged to form Imperial banks in 1921.
• The imperial bank was later transformed into the State Bank of India in 1955.
• SBI associate banks are merged:
  • State Bank of Bikaner and Jaipur
  • State Bank of Travancore
  • State Bank of Patiala
  • State Bank of Mysore
  • State Bank of Hyderabad

Important Points

• The first nationalized bank in India - SBI under the SBI Act of 1955.
• Seven subsidiaries bank of State Bank became Nationalized on 19th July 1960. 
• Seven subsidiaries of SBI are:
  • State Bank of Bikaner and Jaipur
  • State Bank of Hyderabad
  • State Bank of Indore merged in 2009
  • State Bank of Mysore
  • State Bank of Patiala
  • State Bank of Saurashtra merged in 2008
  • State Bank of Travancore
• SBI chairman: Dinesh Kumar Khara
• SBI Headquarters: Mumbai

• The correct answer is option 1, i.e., SBI.
• SBI has launched the ‘Unnati Credit Card’ in 2017 to enhance credit inclusion in India.
• The card was launched on Mar 28, 2017, by the then MoS (I/C) for Power, Coal, New and Renewable Energy, and Mines, Mr. Piyush Goel.
• The facility is available only in accounts where minimum balance maintained is Rs. 20000.
• The facility is provided without checking the credit history of the customer.
• The word 'Unnati' means 'progress', thus the credit card aimed to bring progress in the credit inclusion in India.
• The card is issued free with no annual fee for the first four years of its subscription.
• ICICI Bank Sapphiro Visa Credit Card is one of the credit cards by the ICICI bank.
• Axis Bank Insta Easy Credit Card is one of the very famous credit card of Axis bank.
• HDFC Regalia is a famous credit card by HDFC bank.

The correct answer is Equity-Linked Savings Scheme.

Key Points

• Equity-Linked Savings Scheme
  • Equity Linked Saving Scheme or ELSS is a type of mutual fund scheme that primarily invests in the stock market or Equity.
  • ELSS Funds are diversified equity funds.
  • These funds primarily invest in stocks of listed companies in a specific proportion according to the fund's investment objective.
  • The advantage ELSS has over other tax-saving instruments is the shortest lock-in period of 3 years. 
  • Capital gains from ELSS get the same treatment in Income Tax Calculation as the rest of the Equity Instruments.
  • Investments of up to 1.5 Lac done in ELSS Mutual Funds are eligible for tax deduction under section 80C of the Income Tax Act. 

The correct answer is Bank of Baroda.

• The amalgamation of Vijaya Bank and Dena Bank with Bank of Baroda (BoB) came into effect from 1 April 2019.
• With amalgamation with BOB to create India's third-largest bank.
• According to the Amalgamation Scheme, Vijaya Bank shareholders would earn 402 BoB equity shares for every 1,000 shares owned.
• In Dena Bank's case, its shareholders will receive 110 BoB shares per 1,000 shares.
• The three-way merger announcement was among many reform initiatives undertaken by Financial Services Secretary Rajiv Kumar to make public-sector banks (PSBs) stable, robust and competitive globally.

The Correct Answer is Option 1 i.e NPCI.

• HDFC Bank:
  • It is India's private sector bank.
  • CEO: Aditya Puri
  • Tagline: We Understand Your World
  • Headquarters: Mumbai
• SBI Bank:
  • It is the largest public sector banks in India.
  • It began with the establishment of the Bank of Calcutta in Calcutta, on 2 June 1806.
  • It was the first-ever joint-stock bank of British India, established under the sponsorship of the Government of Bengal.
  • Rajnish Kumar is the chairman of SBI 
  • Tagline: The banker to every Indian.
• ICICI Bank:
  • It is the private sector bank in India. 
  •  ICICI Bank became the first to enable its customers to make electronic payments by just waving the cards near the merchant terminal.
  • ICICI Bank Chairman is Girish Chandra Chaturvedi.
  • Tagline: Hum Hai Na, Khyal Apka
  • Headquarters: Mumbai. 
• NPCI:
  • It is an acronym for the National Payments Corporation of India.
  • It is an umbrella organization for all retail payments and settlement systems in India.
  • It is an initiative of the Reserve Bank of India (RBI) and the Indian Banks’ Association (IBA). 
  • It was formed as a “Not for Profit” Company under the provisions of Section 25 of Companies Act 1956.
  •  Its Headquarters‎ is in ‎Mumbai.
  • BHIM App, an Indian mobile payment app has been developed by the National Payments Corporation of India.
  • The National Payments Corporation of India (NPCI) has launched the Unified Payments Interface (UPI) 2.0 in 2018.
  • UPI version 1 was launched in April 2016.
  • UPI is a system that powers multiple bank accounts into a single mobile application.