Reserve Bank of India – RBI related questions:
Ques. Which of the following is the correct statement ?
(a) State bank of India is the sole authority to issue and manage currency in India
(b) A nationalised bank is the sole authority to issue and manage currency in India.
(c) A cooperative bank is the sole authority to issue and manage currency in India.
(d) RBI is the sole authority to issue and manage currency in India.
Ques. Who has the sole right to issue paper currency in India?
(a) The Government of India
(b) The Finance Commission
(c) The Reserve Bank of India
(d) The Central Bank of India
Ques. Who amongst the following was never a Governer the RBI?
(a) Bimal Jalan
(b) Y, V. Reddy
(c) Amp Roy Choudhury
(d) C. Rangarajiln
Ques. Who is the signatory on the Indian currency notes in denomination of two rupees and above?
(b) Finance Secretary, Minister of Finance
(c) Governor, Reserve Bank of India
(d) Finance Minister, Ministry of Finance
Ques. The Reserve Bank of India (RBI) acts as a bankers’ bank. This would imply which of the following?
1. Other banks retain their deposits with the RBI.
2. The RBI lends funds to the commercial banks in times of need.
3. The RBI advises the commercial banks on monetary matters.
Select the correct answer using the codes given below :
(a) 2 and 3 only
(b) 1 and 2 only
(c) 1 and 3 only
(d) 1, 2 and 3
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Ques. The Banking Ombudsman has been constituted under which Act?
(a) Banking regulation Act
(b) RBI Act
(c) SBI Act
Ques. The symbol of Reserve bank of India is
(a) Capital of Asokan Pillar
(b) Kuber with a purse of money
(c) Tiger before a Palm tree
(d) A dog sitting in a defensive state
Ques. The RBI was originally constituted as a shareholder bank with a share capital of __
(a) 50 lakh
(b) 100 lakh
(c) 10 crore
(d) 5 crore
Ques. Banks borrow money from the RBI on which of the following rates ?
(a) Reverse Repo Rate
(b) Repo Rate
(c) Savings Rate
(d) SLR and CRR
Ques. Which of the following statements about a Reserve Bank of India (RBI) directive to banks on repayment of home loans is/are correct ?
(a) Banks cannot charge penalty on pre-payment of home loans
(b) Rate of penalty charged by all banks on pre-payment of home loans must be the same
(c) RBI will determine the rate of penalty charged by banks on pre-payment of home-loans
(d) Penalty charged by banks on pre-payment of home loans should depend on the amount and tenure of the loan
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Ques. Under Section 19 of the Reserve Bank of India Act, 1934, the RBI has been prohibited
(a) making loans or advances
(b) drawing or accepting bills payable otherwise than on demand
(c) allowing interest on deposits or current accounts
(d) All of these
Ques. All banks in India get major policy decisions/ directives/guidelines related to their day ‘to day operations from
(a) Ministry of Home Affairs, Government of India
(b) Securities and Exchange Board of India (SEBI)
(c) Reserve Bank of India (RBI)
(d) All India Bank Employees Union
Ques. The Head of the Reserve Bank of India is designated as the .
(a) Chief Executive Officer
(b) Managing Director
(c) Chief Banking Officer
Ques. The first bank established in India was __
(a) Bank of Bengal
(b) Bank of Hindustan
(c) Allahabad Bank
(d) Punjab National Bank
Ques. RBI’s Department of Currency Management is located at
(b) New Delhi
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Question: Which of the following is/are the measure(s) taken by the Reserve Bank of India (RBI) to ease the liquidity crunch in the country ?
(A) Cut in Cash Reserve Ratio and Statutory Liquidity Ratio.
(B) Increase the flow of foreign direct investment.
(C) Supply of additional currency notes in the market.
(a) Only (A)
(b) Only (B)
(c) Only (C)
(d) All (A), (B) & (C)
Ques. Who is authorized to issue coins in India?
(b) Ministry of finance
(d) None of these
Ques. RBI notifies CRR under _________ Act
(a) Section 24 of the Banking Regulation Act
(b) Section 42 of the Banking Regulation Act
(c) Section 24 of the RBI Act
(d) Section 42 of the RBI Act
Ques. Coins are minted at the four mints located
(a) Mumbai, Noida, Kolkata and Chennai
(b) Nashik, Dewas, Mysore and Bengaluru
(c) Mumbai, Noida, Kolkata and Hyderabad
(d) Nashik, Dewas, Mysore and Salboni
Ques. The Reserve Bank of India does NOT decide the _____
(a) Rate of Repo and Reverse Repo
(b) Marginal Standing Facility Rates
(c) Bank Rate
(d) Rate of Dearness Allowance to Govt. Employees
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Ques. Reserve Bank of India was nationalized in ___.
Ques. Under Section 17 of Reserve Bank of India Act, 1934 the central bank involves in
(a) Selling of Government Securities
(b) Issuing & accepting of Promissory notes
(c) Emergency loans to banks
(d) Issuing of Currency notes
Ques. What is Repo Rate?
(a) It is the rate at which RBI sells government securities to banks.
(b) It is the rate at which banks borrow rupees from RBI.
(c) It is the rate at which RBI allows small loans in the market.
(d) It is the rate which is offered by banks to their most valued customers or prime customers
Ques. Which of the following tools is used frequently by the RBI to control credit and monetary situations of the markets in the country?
(a) Forward Rate Agreements (FRA)
(b) Cash Reserve Ratio (CRR)
(c) Real Time Gross Settlement (RTGS)
(d) Electronic Clearing Service (ECS)
Ques. Which one of the following rates signal the RBI’s long term outlook on interest rates ?
(a) Repo Rate
(b) Bank Rate
(d) Reverse Repo Kate
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Ques. Which of the following is one of the core functions of the Reserve Bank of India?
(a) To act as Tax collector of the Govt. of India
(b) Help in finalization of the Union Budget
(c) Participate in annual meetings of the various financial institutes world wide
(d) Work as Banker to the Banks
Ques. The percentage of deposits of commercial banks statutorily kept with the RBI is :
(a) Cash Reserve Ratio
(b) Statutory Liquidity Ratio
(c) Repo Rate
(d) None of these
Ques. NABARD is a __
(a) Department of RBI
(b) Wholly owned subsidiary of RBI
(c) Subsidiary of RBI
(d) None of the above
Ques. These are short-term securities issued by the RBI on behalf of the government of India:
(a) Trade bill
(c) Treasury bills
(d) None of these
Ques. Banking and financial services, all over the world, are regulated usually by Monetary Authority of the land. Who controls this function in India ?
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Ques. What does the open market operations of the RBI mean?
(a) Buying and selling shares
(b) Auctioning of foreign exchange
(c) Trading in securities
(d) Transactions in gold
Ques. The Reserve Bank of India
(a) provides direct fiancee to agriculture
(b) Provides finance to primary cooperative societies
(c) Provides finance to state cooperative banks
(d) Does not provide finance to agriculture
Ques. The RBI issues currency notes under the
(a) Fixed Fiduciary System
(b) Maximum Fiduciary System
(c) Fixed Minimum Reserve System
(d) Proportional Reserve System
Ques. This refers to the market for government and semi-government securities backed by the RBI
(a) Money market
(b) Capital market
(c) Gilt edged market
(d) None of the above
Ques. Holidays are declared to the banks under
(a) RBI Act
(b) Banking Regulation Act
(c) Negotiable Instrument Act
(d) Indian Contracts Act
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What is the Reserve Bank of India?
It is the central bank of India. It is responsible for the issue of the Indian rupee and the regulation of the banking system. They also manage the country’s main payment systems and promote economic development. Here are some facts about this central bank. The Reserve is independent of the government, so it is not a “one-party state”. It has the power to change the exchange rate of the rupee.
The Reserve Bank of India is governed by a 21-member central board of directors. The governor is the executive head of the bank, and the other members are the deputy governors. There are two representatives of the finance ministry on the central board. The board also includes ten government-nominated directors and four directors who represent local boards. The board is composed of indigenous banks and co-operatives. The RBI is accountable to the government, the legislature, and the public.
The RBI is responsible for setting the overnight interbank lending rate (MIBOR), which is the benchmark for interest rate-related financial instruments in the country. It also formulates the country’s monetary policy, which is to ensure that credit flows to productive economic sectors. In addition, the RBI is responsible for managing foreign exchange under the Foreign Exchange Management Act of 1999, which allows it to facilitate payments and external trade. It is also responsible for regulating a number of industries in the financial sector.