1. How many deputy governors does RBI have?

a) One b) Two c) Three d) Four e) None

2. Who appoints the deputy governors of RBI?
a) RBI Governor
b) Union Government of India
c) President of India
d) Board of directors of RBI e) None
3. RBI is directly controlled by .......
a) Public b) All banks in India
c) Central board of directors of RBI
d) Union Government of India
e) None of these
4. How many members will be there in RBI
central board of directors?
a) 15 b) 5 c) 21 d) 25 e) 272
5. RBI is formed under which act .......
a) RBI act 1935 b) RBI act 1934
c) Banking regulation act 1949
d) Indian Penal Code (IPC) 1947
e) None of these
6. Institutions, that are appearing in the second
schedule of the RBI act 1934 are called
as .......
a) Scheduled banks
b) Only commercial banks
c) Non Banking Financial Institutions (NBFC)
d) Both a and c e) None of these
7. ....... acts as fundamentals to the nation's
financial system.
a) RBI b) Central Government
c) Banks d) Central Bank
e) None of these
8. Regional Rural Banks are supervised by .......
a) NABARD b) RBI
c) State Government
d) Central Government e) None of these
9. Identify the RBI Owned Subsidiaries .......
a) National Housing Bank (NHB).
b) Bharatiya Reserve Bank Note Mudran
Pvt Ltd (BRBNMPL).
c) Deposit Insurance and Credit Guarantee
Corporation (DICGC).
d) National Bank for Agriculture and Rural
Development (NABARD).
e) All of these
10. RBI's quasi judicial authority for solving
disputes between banks and their customer
is known as .......
a) Banking codes and standards board of
India.
b)Customer services and dispute redressal
cell.
c) Banking ombudsman
d) Judgments on disputes and services
authority e) None of these
11. FEMA 1999 stands for .......
a) Financial Exchange Management Act 1999
b) Foreign Exchange Management Act 1999
c) Foreign Economy Management Act 1999
d) Foreign External Management Act 1999
e) None of these
12. Primary activities of RBI are .......
a) Managing foreign exchanges
b) Issuing currency notes
c) Maintaining financial stability
d) Regulating banking system in India
e) All of these
13. Maintaining cash balance with
RBI as a share of demand and
time liabilities of bank is known
as .......
a) CRR b) SLR c) LAF
d) MSF e) None of these
14. Identify RBI Regulatory role from
following.......
a) Licensing
b) Monitoring governance
c) Regulating interest rates in specific areas
d) Prescribing capital requirements
e) All the above
15. What are the principles that guide RBI in
investing its foreign assets?
a) Safety and liquidity
b) Safety and returns
c) Liquidity and returns
d) Safety, liquidity and returns e) None
16. Larger value settlement of inter-bank trans-
actions from financial markets is done
through .......
a) Real time gross settlement
b) Internal payment and settlement
c) RBI payment system
d) National Electronic Funds Transfer
e) All the above
17. National Bank for Agriculture and Rural
Development is established for .......
a) Promoting mutual funds in the country
b) Promoting and regulating housing
finance in rural areas
c) Promoting rural and agricultural credit
d) Regulating agriculture in rural areas
e) None of these
18. Cash reserves consists of .......
a) Cash
b) Money market instruments
c) Treasury bills
d) All the above e) Only a and c
19. Main instruments available to Central
Banks to control prime rates of leading
banks .......
a) Repo rates b) Reverse repo rate
c) Cash Reserve Ratio
d) Statutory Liquidity Ratio
e) All the above
20. Acceptance of deposits from the public for
the purpose of lending and investment is
the main activity of .......
a) Commercial banks
b) Financial institutions
c) Primary dealers
d) Non banking financial companies
e) All the above
21. Banks which are controlled by NABARD
and State Government are?
a) Urban cooperative banks
b) Rural cooperative banks
c) Commercial banks
d) Non-banking financial companies
e) None of these
22. RBI's facility of repurchase of securities is
known as .......
a) REPO Rate b) Reverse REPO rate
c) Treasury bills d) Security rate
e) None of these
23. For efficient and effective payment and set-
tlement system RBI must undertake follow-
ing activity .......
a) Maintain of clearing houses at
various centers.
b) Creation of currency holding
chests in different areas.
c) Creation of the mechanism for
electronic fund transfer.
d) All the above e) None of these
24. RBI's regulatory and supervisory
policy initiatives are aimed at .......
a) Protection of the depositors' interests
b) Orderly development of banking services
c) Conduct of banking operations
d) Liquidity and solvency of banks
e) All the above
25. Name the publicity campaigns by RBI on
security features of rupee currency note are
display on poster at bank branches?
a) Know Your Bank note
b) Know Your Money
c) Know Your Currency (KYC)
d) Currency Note Education e) None
26. External commercial borrowings are such
as .......
a) Commercial-bank loan
b) Buyers' credit
c) Securitized instruments
d) Suppliers' credit e) All the above
27. Who all cannot open account with RBI?
a) Schedule banks b) Non-schedule banks
c) General public
d) Union Government of India
e) Both b and c
Indian banking system has given a shape and structure
by the formation of central bank in India, known as
Reserve Bank of India (RBI). It was established in 1935
under RBI Act 1934 with a capital of 5 crores, divided into
100 shares of 5 lakhs each and was owned by
government with limited functions.
RRBs are supervised by..?
1-d
2-b
3-c
4-c
5-b
6-a
7-c
8-a
9-e
10-c
11-b
12-e
13-a
14-e
15-d
16-a
17-c
18-d
19-e
20-a
21-b
22-a
23-d
24-e
25-a
26-e
27-c.
Key
S. Rudranand
Banking Knowledge
A
fter indepen-
dence to India,
RBI was national-
ized on 1
st
January,
1949.
Banking Regulation Act 1949 empowered
RBI and gave full-fledged functions of a
central bank and as a banking and finan-
cial regulatory authority of India. By this
RBI has authority to license and control
banks, audit them, inspect, regulate and
monitor.
RBI functions with certain objectives such
as....
To maintain monetary stability.
To maintain financial stability and ensure
sound financial institutions.
To maintain stable payment systems.
To ensure credit allocation by the financial
system.
To regulate the overall volume of money
and credit in the economy.
To promote the development of financial
markets.
To educate and convert the general public
to use organized financial and banking
sector.
Some Important Functions of RBI:
Monitoring monetary policy by taking
operate decision with the help of some
direct and indirect tools like Cash Reserve
Ratio (CRR), Statutory Liquidity Ratio
(SLR), and Refinance facilities. These are
direct tools.
A few indirect tools: RBI also uses some
indirect tools like Liquidity Adjustment
Facility (LAF), Repo / Reverse Repo Rate,
Open Market Operations (OMO), Marginal
Standing Facility (MSF), Bank Rate, and
Market Stabilisation Scheme (MSS).
RBI prints currency notes with the help of its
subsidiaries, 'The Security Printing and
Minting Corporation of India Limited (SPM-
CIL)', 'The Bharatiya Reserve Bank Note
Mudran Pvt. Ltd. (BRBNMPL)'.
On behalf of Government of India RBI
mints rupee coin with the help subsidiaries,
'The Security Printing and Minting
Corporation of India Limited (SPMCIL)'
which are known as mints which comes
under Coinage Act, 1906.
RBI acts as Banker and Debt Manager to
Government. It maintain accounts and
banking transactions of central govern-
ment, it receive funds and make payments
and transfer funds on behalf of government
and also known as Banker to Banks.
RBI is the Regulator of the Indian Banking
Services and System, it regulates through
licensing banks, formulation of certain rules
etc.,. It also known as Manager of foreign
exchange and foreign reserves in India by
appointing authorized dealers for exchang-
ing foreign currency. Development of for-
eign currency reserves like Foreign
Currency Assets (FCA), Special Drawing
Rights (SDRs) and gold etc.,. The act that
helps RBI to manage foreign exchange
transactions is Foreign Exchange
Management Act (FEMA) 1999.
RBI is Regulator and Supervisor of the
Payment and Settlement Systems in India.
All the clearing and settlements activities
are done through different means and
established different schemes and ser-
vices like National Payments Corporation
of India (NPCI), The Real Time Gross
Settlement (RTGS), Electronic Funds
Transfer (EFT), National Electronic
Clearing Service (NECS), Electronic
Clearing Service (ECS), Cheque
Truncation System (CTS) etc.
Reserve Bank
of India
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