History of Banking — Set 3
Banking · बैंकिंग का इतिहास · Questions 21–30 of 60
The Banking Regulation Act was originally passed in which year?
Correct Answer: C. 1949
The Banking Regulation Act was passed in 1949 as the Banking Companies Act. It provides a framework for the regulation and supervision of commercial banks in India. It empowers the RBI to license banks and regulate their operations.
Which bank was established following the 'Swadeshi Movement' and celebrated its centenary in 2006?
Correct Answer: A. Canara Bank
Canara Bank was founded by Ammembal Subba Rao Pai in 1906 during the Swadeshi Movement. It was originally named Canara Hindu Permanent Fund. It became a nationalized bank in 1969 and is now a major public sector bank.
Which bank is known as the 'Banker to the Government' in India?
Correct Answer: A. Reserve Bank of India
The Reserve Bank of India acts as the banker, agent, and adviser to both the Central and State Governments. It manages the government's public debt and handles all its banking transactions. This role is a core function of a central bank.
Which committee suggested the merger of Public Sector Banks to create fewer but stronger banks?
Correct Answer: B. Narasimham Committee II
The Narasimham Committee II (1998) suggested that India should have three or four large banks of international standing. This recommendation has driven the recent large-scale mergers of public sector banks. The goal is to improve capital efficiency and risk management.
Which of the following banks was NOT among the 14 banks nationalized in 1969?
Correct Answer: B. Vijaya Bank
Vijaya Bank was not nationalized in the first phase of 1969; it was nationalized in the second phase in 1980. The 1969 phase targeted the top 14 banks with the highest deposits. Dena, Central Bank, and Allahabad were part of that initial group.
In which year did the Reserve Bank of India start issuing its own currency notes?
Correct Answer: B. 1938
The RBI issued its first currency note, a five-rupee note, in January 1938. This note bore the portrait of King George VI. Before this, the Government of India was responsible for issuing paper currency.
The head of the Reserve Bank of India is known by which designation?
Correct Answer: D. Governor
The chief executive of the RBI is the Governor, who is appointed by the Government of India. The Governor is assisted by four Deputy Governors. This office holds supreme authority over the country's monetary policy.
Which of the following was the first bank to introduce ATMs in India in 1987?
Correct Answer: D. HSBC
HSBC (Hongkong and Shanghai Banking Corporation) introduced the first Automated Teller Machine (ATM) in India in Mumbai. This technology revolutionized the way customers accessed their cash. Since then, ATMs have become a staple of modern banking in India.
Which was the first Universal Bank in India?
Correct Answer: C. ICICI Bank
ICICI Bank became the first universal bank in India after the merger of ICICI with its subsidiary ICICI Bank in 2002. Universal banking refers to a system where banks provide both commercial and investment banking services. This model allows for diversified financial service offerings.
The concept of 'Narrow Banking' was proposed by which committee in India?
Correct Answer: D. Tarapore Committee
The Tarapore Committee on Capital Account Convertibility proposed 'Narrow Banking' for weak banks. Under this, such banks would invest only in risk-free government securities. It was suggested as a measure to prevent financial instability in the system.