MCQs with answers on Banking in India - Part II

ANSWER: c) State Bank of India

The State Bank of India is the largest commercial bank of the country and is among the 100 topmost banks in the world, excluding the United States of America.

ANSWER: (c) All the above

The State Bank has seven subsidiary banks attached to it.

ANSWER: a) May 23, 2008

The RBI sanctioned the amalgamation of the Centurion Bank with the HDFC Bank on May 23, 2008.

ANSWER: d) State Bank of Saurashtra

The State Bank of Saurashtra was merged with State Bank of India on August 13, 2008 as the RBI sanctioned the amalgamation.

ANSWER: c) January, 1993

Subsequent to the issue of guidelines in January 1993 for the entry of new private sector banks, the RBI granted approval for the setting up of 13 new privately-owned domestic banks.

ANSWER: (d) All the above

Subsequent to the issue of guidelines in January 1993 for the entry of new private sector banks, the RBI granted approval for the setting up of 13 new privately owned domestic banks. Out of these, 10 have already started functioning. These include UTI Bank Ltd. (Registered Office: Ahmedabad); IndusInd Bank Ltd. (Pune); ICICI Bank Ltd. (Baroda); (iv) Global Trust Bank Ltd. (Secunderabad); (v) HDFC Ltd. (Mumbai); Centurion Bank Ltd. (amalgamated with the HDFC Bank in 2008) (Panaji); Bank of Punjab Ltd. (Chandigarh); Times Bank Ltd. (Faridabad); IDBI Bank Ltd. (Indore); Development Credit Bank Ltd. (Mumbai)

ANSWER: d) July, 1969

In the early years of independence the number of bank offices was very small. The process of expansion gathered momentum after the nationalisation of the major banks in July, 1969. At the end of March, 2009 there were over 80,547 scheduled commercial bank offices in India excluding the administrative offices. The major thrust in branch expansion in the country has come only from the public sector banks. Meanwhile, the RBI has liberated its branch licensing policy and given full freedom to nationalised banks for opening new branches.

ANSWER: (c) All the above

Deposits mobilised by the banks are utilised for loans and advances, investment in government and other approved securities in fulfilment of liquidity stipulation, and investment in commercial papers, shares, debentures up to stipulated ceilings. After the nationalisation of major commercial banks in the country, there has been marked expansion in their business, both with regard to the bank deposits as well as the bank credit. The accretion of deposits was primarily on account of time deposits which increased substantially despite the downward movement of the interest rates and reflected the “safe haven” sentiment.

ANSWER: a) September, 2005


The Government initiated the process of amalgamation of RRBs in a phased manner with a view to consolidate and strengthen RRBs. 196 RRBs were amalgamated to form 86 new RRBs till March 31, 2009.

ANSWER: b) July, 1988

The National Housing Bank, the apex institution of housing finance in India, is a wholly-owned subsidiary of RBI. It started operating from July, 1988 with an authorised paid-up capital of RS. 450 crore.