History of Banking — Set 4

Correct Answer: B. Bank of Baroda

The Bank of Baroda was founded by the Maharaja of Baroda in 1908. It started with a small capital and grew into one of India's premier international banks. It was nationalized in 1969 along with 13 other banks.

Correct Answer: B. Presidency Bank of Bengal

The Presidency Bank of Bengal is credited with introducing the first savings account facility in India. This allowed common people to keep their small savings safely with the bank. It played a major role in developing the banking habit among Indians.

Correct Answer: C. ICICI Bank

ICICI Bank was the first Indian bank to list its shares on the NYSE in 1999. This was done through the issuance of American Depository Receipts (ADRs). It opened doors for other Indian financial institutions to tap into international capital markets.

Correct Answer: D. RBI Act 1934

The Reserve Bank of India Act, 1934 was amended to give the RBI power over Non-Banking Financial Companies. Specifically, Chapter III-B deals with the registration and regulation of NBFCs. This was necessary to ensure the stability of the broader financial system.

Correct Answer: A. Corporation Bank

Corporation Bank was the pioneer in implementing Core Banking Solution (CBS) in India. CBS allows customers to manage their accounts and perform transactions from any branch of the bank. It became the technological standard for all modern banks.

Correct Answer: A. Rural

NABARD stands for National Bank for Agriculture and Rural Development, established in 1982. It was created to focus exclusively on rural credit and the development of the agricultural sector. It took over the functions of the Agricultural Credit Department of the RBI.

Correct Answer: A. 1996

Local Area Banks were introduced in 1996 to bridge the gaps in credit availability in rural and semi-urban areas. They are small, private sector banks that operate in a limited area of 2-3 contiguous districts. Their objective is to mobilize local savings for local investments.

Correct Answer: D. Lahore

Punjab National Bank was established in 1894 with its registered office in Anarkali Street, Lahore. It was the first bank to be managed solely by Indians. After the partition in 1947, its headquarters were shifted to New Delhi.

Correct Answer: B. CIBIL

CIBIL (Credit Information Bureau (India) Limited) was incorporated in 2000 to maintain records of an individual's payments pertaining to loans and credit cards. It provides credit scores to lenders to assess the creditworthiness of borrowers. It helps in reducing the Non-Performing Assets of banks.

Correct Answer: D. Narasimham Committee I

The Narasimham Committee I (1991) report is considered the Magna Carta of banking reforms. It suggested reducing SLR and CRR and adopting international accounting standards. These reforms paved the way for the modernization of the Indian financial system.