History of Banking — Set 2
Banking · बैंकिंग का इतिहास · Questions 11–20 of 60
A second phase of bank nationalization took place in 1980. How many banks were nationalized then?
Correct Answer: B. 6
In the second phase of nationalization in 1980, 6 more commercial banks were taken over by the government. These were banks with demand and time liabilities exceeding ₹200 crores. This move further increased the government's control over the banking sector to nearly 90%.
Which committee's recommendations led to the introduction of banking sector reforms and Private Sector Banks in 1991?
Correct Answer: D. Narasimham Committee
The Narasimham Committee (Committee on the Financial System) recommended major structural changes in 1991. This led to the entry of new generation private sector banks like ICICI and HDFC. The reforms aimed at improving the efficiency and profitability of the banking system.
In which city were the first headquarters of the Reserve Bank of India located?
Correct Answer: D. Kolkata
The Reserve Bank of India was initially headquartered in Kolkata when it started in 1935. It was permanently moved to Mumbai in 1937. Today, Mumbai remains the financial capital where the RBI Governor's office is situated.
Which bank is the oldest Joint Stock Bank in India that is still in existence?
Correct Answer: B. Allahabad Bank
Allahabad Bank was established in 1865 and is considered the oldest Joint Stock Bank in India. Though it has now been merged with Indian Bank, its legacy dates back over 150 years. A joint stock bank is one that is owned by its shareholders.
Which year is associated with the establishment of the State Bank of India (Subsidiary Banks) Act?
Correct Answer: D. 1959
The State Bank of India (Subsidiary Banks) Act was passed in 1959. This act enabled the SBI to take over eight princely-state-associated banks as its subsidiaries. These included banks like State Bank of Patiala, Mysore, and Hyderabad.
Who was the first Governor of the Reserve Bank of India?
Correct Answer: A. Sir Osborne Smith
Sir Osborne Smith served as the first Governor of the Reserve Bank of India from 1935 to 1937. He was a professional banker with experience in the Bank of New South Wales and the Imperial Bank of India. He did not sign any Indian currency notes during his short tenure.
Which of the following was the first Regional Rural Bank (RRB) set up in India?
Correct Answer: C. Prathama Bank
Prathama Bank was the first Regional Rural Bank established in India on October 2, 1975. It was sponsored by Syndicate Bank and headquartered in Moradabad, Uttar Pradesh. RRBs were created to provide credit to small farmers and rural artisans.
Which committee is primarily credited with recommending the Lead Bank Scheme introduced in 1969, under which a specific bank is assigned to each district?
Correct Answer: B. Nariman Committee
The Nariman Committee (formally the Study Group on Organisational Framework for the Implementation of Social Objectives) is primarily credited with recommending the Lead Bank Scheme in 1969. The Gadgil Study Group had earlier identified the need for area-based approaches to banking, which provided the conceptual foundation. However, the Nariman Committee gave the scheme its concrete operational form. Under the Lead Bank Scheme, one bank is assigned as the lead bank for each district to coordinate credit planning and financial inclusion activities.
Which was the first Indian bank to open a branch outside India (in London, 1946)?
Correct Answer: D. Bank of India
Bank of India was the first Indian bank to open a branch outside the country in London in 1946. It was also the first to expand into continental Europe and Japan. This marked a significant milestone in the global footprint of Indian banking.
In banking terminology, what does 'LPG' reforms of 1991 stand for?
Correct Answer: D. Liberalization, Privatization, Globalization
LPG stands for Liberalization, Privatization, and Globalization, which were the cornerstones of the 1991 economic reforms. In banking, this led to the removal of restrictive regulations and allowed private and foreign players to enter the market. It transformed Indian banking into a competitive and technology-driven industry.