Banking Affairs MCQ Quiz - Objective Question with Answer for Banking Affairs - Download Free PDF

The correct answer is 4.0% to 4.5%.

Key Points

• According to the State Bank of India (SBI) report, India's poverty rate for 2024 is estimated to be in the range of 4.0% to 4.5%.
• The report highlights a significant reduction in poverty levels compared to previous years due to economic reforms and social welfare programs.
• Poverty rates are calculated based on income thresholds and consumption expenditure data derived from household surveys.
• The SBI's research reflects India's progress towards achieving Sustainable Development Goals (SDGs), particularly Goal 1: No Poverty.
• The reduction in poverty is attributed to factors such as rising rural incomes, government schemes, and improved access to education and healthcare.

Additional Information

• Poverty Measurement
  • Poverty is measured using the poverty line, which refers to the minimum income level required to meet basic needs.
  • India uses data from the National Sample Survey Office (NSSO) to estimate poverty rates.
  • Poverty reduction is influenced by factors like economic growth, social welfare schemes, and employment opportunities.
• Government Schemes Targeting Poverty
  • Programs like Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) aim to provide employment and reduce poverty.
  • Housing schemes such as Pradhan Mantri Awas Yojana (PMAY) contribute to poverty alleviation by ensuring shelter.
  • Direct Benefit Transfers (DBT) and subsidy reforms enhance targeted delivery of benefits to poor households.
• Sustainable Development Goals (SDGs)
  • Goal 1: No Poverty aims to eradicate extreme poverty and reduce poverty in all dimensions.
  • India’s poverty reduction efforts align with SDG targets set for 2030.
  • Social inclusion and access to basic services are integral to achieving these goals.
• State-wise Poverty Trends in India
  • States like Kerala, Goa, and Punjab report lower poverty rates due to higher economic development.
  • States with higher poverty levels include Bihar and Odisha, where targeted interventions are required.
  • Regional disparities in poverty levels highlight the need for customized policy measures.

The correct answer is 20%.

In News

• Sumitomo Mitsui Banking Corporation (SMBC) bought a 20% stake in YES Bank for around Rs 13,483 crore in May 2025.

Key Points

• SMBC, a wholly-owned subsidiary of Sumitomo Mitsui Financial Group (SMFG), acquired 20% of YES Bank's stake through a secondary stake purchase.
• The transaction was valued at approximately Rs 13,483 crore.
• SMBC is Japan's second-largest banking group and this deal represents a significant investment in the Indian banking sector.
• YES Bank, headquartered in Mumbai, Maharashtra, has been making efforts to enhance its financial stability and growth.

Additional Information

• Sumitomo Mitsui Banking Corporation (SMBC)
  • Founded in - 2001
  • HQ - Tokyo, Japan
  • Role - Wholly owned subsidiary of Sumitomo Mitsui Financial Group, Inc.
• YES Bank
  • Founded in - 2004
  • HQ - Mumbai, Maharashtra
  • Focus - Providing financial services, including retail banking and corporate banking

The correct answer is Only 1 and 2.

In News

• The Reserve Bank of India (RBI) imposed a penalty of Rs. 2.72 crore on State Bank of India (SBI) and Jana Small Finance Bank (SFB) for non-compliance with regulatory guidelines in May 2025.

Key Points

• SBI was fined Rs. 1.728 crore for non-compliance with directions issued by the RBI regarding regulatory guidelines.
• Jana Small Finance Bank (SFB) was imposed a penalty of Rs. 1 crore for violating certain provisions of the Banking Regulation Act, 1949.

Additional Information

• State Bank of India (SBI)
  • SBI, India’s largest public sector bank, was penalized for failing to comply with certain regulatory guidelines issued by the RBI.
  • Established in 1806 as the Bank of Calcutta, SBI is the oldest commercial bank in the Indian subcontinent. It became the State Bank of India in 1955 after the Government of India took control of the Imperial Bank of India, which was formed by merging the Bank of Calcutta, Bank of Madras, and Bank of Bombay .
  • SBI's digital banking platform, YONO (You Only Need One), offers a range of services including account opening, fund transfers, and bill payments.
  • Headquarters: Mumbai, Maharashtra, India
  • Chairman: C S Shetty
• Jana Small Finance Bank
  • Jana Small Finance Bank was fined for contravening provisions of the Banking Regulation Act, 1949, a key piece of legislation governing banking operations in India.
  • Founded: 2018
  • Headquarters: Bangalore, Karnataka, India
  • Key people: Ajay Kanwal (CEO)

The correct answer is Canara Bank.

In News

• Canara Bank launched the ‘CANARA TruEdge’ Savings and Current Account in May 2025, offering a feature-rich suite of accounts tailored to specific customer needs.

Key Points

• Canara Bank launched ‘CANARA TruEdge’, a specialized and feature-rich suite of Current and Savings Accounts aimed at improved customer segmentation.
• The product comes with the tagline “Grow with trust, lead with edge,” designed to offer customized solutions to customers based on their financial workflows.

Additional Information

• Canara Bank
  • Canara Bank is one of the leading Public Sector Banks (PSBs) in India, offering a range of customer-centric products and services.
• Union Bank of India
  • Alongside Canara Bank, Union Bank of India also launched a new product called “Union Wellness Deposit,” highlighting innovation in retail banking services.

The correct answer is 1, 2, and 3.

In News

• Public Sector Banks (PSBs) achieved a record cumulative profit of Rs. 1.78 lakh crore in FY25, with a growth of 26% over FY24.
• SBI accounted for more than 40% of the total profit, with a net profit of Rs. 70,901 crore, representing a 16% increase from FY24.
• PNB recorded the highest percentage growth in net profit among all PSBs, with a 102% increase to Rs. 16,630 crore.

Key Points

• PSBs posted a record profit of Rs. 1.78 lakh crore in FY25, growing 26% from the previous year, driven by strong performances from top banks like SBI and PNB.
• SBI, as the market leader, accounted for more than 40% of the total PSB profit, with a notable 16% increase in its net profit.
• PNB’s remarkable 102% growth in net profit made it the highest performer in terms of percentage growth among all PSBs.

Additional Information

• State Bank of India (SBI)
  • SBI is the largest public sector bank in India, with a strong market presence and contribution to the financial sector's profitability.
• Punjab National Bank (PNB)
  • PNB's 102% profit growth highlights its strong recovery and financial performance, reflecting efficient management and operational improvements.

The correct answer is Vijaya Bank and Dena Bank.

Key Points 

• Bank of Baroda became the third largest bank after the amalgamation.
• State Bank of India (SBI) and ICICI Bank are the largest banks in India.
• The government of India proposed the merger of Dena Bank and Vijaya Bank with the Bank of Baroda on 17th September 2018.
• Branches of Vijaya Bank and Dena Bank will function as Bank of Baroda after the amalgamation.
• It was the first-ever three-way consolidation of banks in India.
• The Government of India nationalized the Bank of Baroda on 19 July 1969.
• The headquarters of the Bank of Baroda is located at Vadodara in Gujarat.

Additional Information

• Syndicate bank merged with Canara Bank In 2019.
• Allahabad Bank merged with Indian bank In 2019.
•  Andhra Bank and Corporation Bank merged with Union Bank of India in 2019.

The correct answer is India.

Key Points

• India has the highest number of bank branches in the world.
• India is leading in the list prepared by the number of bank branches in the world based on an IMF report published in 2015.
• India has more than 1.2 lakh bank branches.
• China has the second-largest number of bank branches in the world with over 95,680 bank branches.
• Colombia stood in the third position on the list with over 94,074 bank branches.
• RBI data published in 2016 shows that India now has over 1.3 lakh bank branches.
• There only 13.54 bank branches per 1 lakh adults in India while compared to its population size.

Additional Information

• The Bank of Hindustan is the first bank in India.
• Punjab National Bank is the first complete indigenous bank in India.
• City Union Bank is the first private bank in India.

The correct answer is Sri Jayawardenepura Kotte.

Additional Information

• The current capital of Sri Lanka is Sri Jayawardenepura Kotte.
• Sri Lanka’s President Gotabaya Rajapaksa has officially resigned, Speaker Mahinda Yapa Abeywardena announced Friday morning, ending days of uncertainty since the widely despised leader fled the island, dislodged by monumental public protests over a grave economic crisis. 
• Sri Lankan president Gotabaya Rajapaksa emailed his resignation letter Thursday night, sparking celebrations among protesters in Colombo.
• Shri Jayawardenepura Kotte is the administrative and Colombo is the executive and judicial capital of Sri Lanka. ​

In News

• The current president of  Srilanka is Ranil Wickremesinghe. (As of Jan 2023).

The correct answer is State Bank of India.

Key Points

• The Indian Navy and State Bank of India (SBI) have launched SBI’s NAV-eCash Card onboard India’s largest Naval Aircraft Carrier INS Vikramaditya.
• NAV-eCash Card with its dual-chip technology will facilitate both online as well as offline transactions.
• The card will remove the difficulties faced by personnel onboard in handling physical cash during deployment of the ship at high seas.

Additional Information

•  Headquarters of some important banks:

The correct answer is Central Bank of India.

Key Points

• Central Bank of India launched a contactless ‘RuPay Select’ debit card in December 2020.
  • It was launched in association with the National Payments Corporation of India.
  • It was launched on the occasion of Bank’s 110th foundation day.
  • The card was officially launched by then MD and CEO of the Central Bank of India, Pallav Mohapatra.
• The Central Bank of India was founded on 21 December 1911.
• The headquarters of the Central Bank of India is located in Mumbai.
• Matam Venkata Rao is the current MD and CEO of the Central Bank of India.

Additional Information

• State Bank of India:
  • State Bank of India is the largest public sector bank in India.
  • SBI descends from the Bank of Calcutta founded in 1806 through the Imperial Bank of India.
  • The Bank of Madras merged into the other two presidency banks, the Bank of Calcutta and the Bank of Bombay to form the Imperial Bank of India which in turn became the SBI on this day in 1955.
    • Founded - 1 July 1955.
    • Chairperson - Dinesh Kumar Khara.
    • Headquarters - Mumbai.
• HDFC Bank Limited:
  • ​HDFC Bank Limited is the largest private sector bank by assets[and by market capitalisation in India.
  • Founded - August 1994
  • Chairperson - Atanu Chakraborty
  • Headquarters - Mumbai.
• ICICI Bank Limited:
  • ​ICICI Bank Limited is a financial services company in India.
  • Founded -June 1994
  • Chairperson - Girish Chandra Chaturvedi
  • Headquarters - Vadodara, Gujarat.

The correct answer is ICICI Bank.

Key Points 

• ICICI Bank became the first bank in India to offer an instant PPF account facility.
• ICICI Bank says it is the first lender in the country to introduce a fully digital and paperless procedure for opening a PPF account.
• Private lender ICICI Bank has launched a digital service to allow customers to open a PPF account online, eliminating the need for furnishing paper documents.
• The digital service will enable customers to open a public provident fund (PPF) account instantly and in a completely online and paperless manner.

Additional Information

• ICICI Bank Limited is an Indian multinational bank and financial services company with its corporate office in Mumbai, Maharashtra.
  • It offers a wide range of banking products and financial services for corporate and retail customers through a variety of delivery channels and specialized subsidiaries in the areas of investment banking, life, non-life insurance, venture capital, and asset management.
  • The bank has a network of 5,275 branches and 15,589 ATMs across India and has a presence in 17 countries.
  • The bank has subsidiaries in the United Kingdom and Canada; branches in the United States, Singapore, Bahrain, Hong Kong, Qatar, Oman, Dubai International Finance Centre, China, and South Africa as well as representative offices in United Arab Emirates, Bangladesh, Malaysia, and Indonesia.

The correct answer is Mumbai.

Key Points

• Headquater of Bank of India is located in Bandra kulra Complex,Mumbai.
• The Bank of India was established on 07th September,1906.
• Bank of India was initially a private owned bank.
• It is under the ownership of Ministry of Finance, Government of India.
• Bank of India was founded on 7 September by a group of eminent businessmen from Mumbai, Maharashtra, India.

Additional Information

• The Bank was under private ownership and control till 19 July 1969 when it was nationalized along with 13 other banks.
• The Reserve Bank of Indi is India's central bank and regulatory body.
• It is responsible for regulation of the Indian banking system.
• It is under the ownership of Ministry of Finance, Government of India.
• It is responsible for the control, issue and maintaining supply of the Indian rupee.
• RBI:
  • RBI 25th Governor: Shaktikanta Das
  • RBI Headquarters: Mumbai
  • RBI Founded: 1 April 1935, Kolkata

The correct is option 3, i.e Akodara

• Akodara village of Gujarat situated in Sabarkantha district became the first digital village of India.
• ICICI Bank in 2015 under its Digital Village Project adopted Akodara village and made cashless by adopting digital technology.
• The village has its own official website, has 100% financial rate and mobile banking facilities in Hindi, English and Gujarati languages.
• Digital India was launched by Prime Minister Narendra Modi on 1 July 2015.
• Khonoma is the first green Village.
• Chizami village of Nagaland's Phek district has been uplifting the lives of women through the Chizami Weaves initiative of the North East Network (NEN).
• Odanthurai village of Tamil Nadu is a self-powered village that produces 7.5 lakh units of electricity in a year through the wind farm.

The correct answer is 13.2%.

Key Points

• Indian Bank has picked up a 13.27 percent stake in the proposed bad bank National Asset Reconstruction Company Ltd (NARCL).
• The lender has subscribed to 1,98,00,000 equity shares of NARCL for cash consideration of Rs. 19.80 crore.
• Three state-owned lenders -- SBI, Union Bank of India, and PNB -- had picked up over 12 percent stake each in NARCL on 30 September 2021.

Important Points

•  Headquarters of some important banks: