History of Banking — Set 5
Banking · बैंकिंग का इतिहास · Questions 41–50 of 60
The first bank of India was established in 1770. What was its name?
Correct Answer: C. Bank of Hindustan
The Bank of Hindustan was the first bank to be established in India in 1770 at Calcutta. It was under European management but eventually liquidated in the 1830s. It laid the initial foundation for modern banking in the country.
In which year was the Reserve Bank of India (RBI) established?
Correct Answer: B. 1935
The Reserve Bank of India was established on April 1, 1935. It was set up in accordance with the provisions of the Reserve Bank of India Act, 1934. Initially, it was a private shareholders' bank before being nationalized later.
Which bank was formed by the merger of the three Presidency banks in 1921?
Correct Answer: D. Imperial Bank of India
The Bank of Bengal, Bank of Bombay, and Bank of Madras were merged to form the Imperial Bank of India in 1921. It acted as a central bank for many years before the RBI was created. In 1955, it was transformed into the State Bank of India.
What is the name of the oldest Public Sector Bank in India that still exists?
Correct Answer: C. Allahabad Bank
Allahabad Bank, established in 1865, is considered the oldest public sector bank in India. Although it has recently been merged with Indian Bank, its historical identity remains significant. It was the first joint stock bank in India.
In which year did the first major nationalization of 14 commercial banks occur?
Correct Answer: B. 1969
The government of India nationalized 14 major commercial banks on July 19, 1969. This was done to ensure that credit reached the priority sectors like agriculture. It was a landmark event in Indian economic history.
Which city is known as the headquarters of the Reserve Bank of India?
Correct Answer: A. Mumbai
Mumbai is the headquarters of the Reserve Bank of India. While it was initially in Kolkata, it moved permanently to Mumbai in 1937. All major policy decisions regarding the nation's currency are made here.
The State Bank of India was formed after the nationalization of which bank?
Correct Answer: A. Imperial Bank of India
The State Bank of India was established on July 1, 1955, following the nationalization of the Imperial Bank of India. It became the successor to the earlier Presidency bank merger. Today, it is the largest commercial bank in India.
Who was the first Indian Governor of the Reserve Bank of India?
Correct Answer: B. C.D. Deshmukh
C.D. Deshmukh was the first Indian to be appointed as the Governor of the Reserve Bank of India in 1943. He later served as the Union Finance Minister of India. Sir Osborne Smith was the very first governor, but he was British.
The second phase of bank nationalization took place in 1980. How many banks were nationalized then?
Correct Answer: D. 6
In April 1980, the second phase of nationalization took place, and 6 more banks were nationalized. This brought nearly 90% of the banking sector under government control. It aimed to further expand the reach of banking services.
Which committee's recommendations led to the establishment of NABARD in 1982?
Correct Answer: B. Sivaraman Committee
NABARD (National Bank for Agriculture and Rural Development) was established on the recommendations of the B. Sivaraman Committee. It was formed to focus solely on rural and agricultural credit. It replaced the agriculture-related departments of the RBI.