JAIIB Exam 2025 – IE&IFS Important Questions MCQs Quiz-21

22/02/2025

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JAIIB Exam 2025 IE&IFS Important Questions MCQs Quiz-21

JAIIB Exam Quiz 2025: The JAIIB exam is scheduled for 2025 by IIBF. Here, we are providing JAIIB IE&IFS MCQ-based quizzes on a regular basis. You can attempt the quizzes regularly to prepare for the upcoming JAIIB exam. The quizzes will be provided module-wise and unit-wise. You can attempt the JAIIB IE&IFS quizzes from the links below and improve your preparation by practicing regularly. These quizzes will help you boost your score in the JAIIB exam and guide you to clear the exam on your first attempt.

Q.1 Which ancient Indian text contains references to creditors and lenders, indicating the early existence of banking practices in India?
A) Manusmriti
B) Arthashastra
C) Rigveda
D) Bhagavad Gita

Q.2 Which of the following statements about early banking in India is correct?
A) The Bank of Hindustan, established in 1770, was the first formal bank in India but ceased operations in 1832.
B) General Bank of India, established in 1786, is the oldest surviving bank in India.
C) The European-controlled banks in India during the 18th century operated without any liability limitations.
D) Oudh Commercial Bank, established in 1881, remains operational today as part of the Indian banking system.

Q 3 Which of the following statements about the Presidency Banks in India is correct?
A) The Bank of Calcutta was renamed as the Bank of Madras in 1809.
B) The three Presidency Banks were established under the Government of India Act, 1858.
C) The Presidency Banks were governed by Royal Charters and catered to British trade and remittances.
D) The Imperial Bank of India was established in 1955 and later became the State Bank of India

Q.4 What was the sequence of establishment of the three Presidency Banks in India?
A) Bank of Bombay → Bank of Madras → Bank of Calcutta
B) Bank of Calcutta → Bank of Bengal → Bank of Bombay
C) Bank of Calcutta → Bank of Madras → Bank of Bombay
D) Bank of Calcutta → Bank of Bombay → Bank of Madras

Q.5 Which of the following is not a requirement for a bank to be classified as a Scheduled Bank under the Reserve Bank of India Act, 1934?
A) The bank must have a paid-up capital and raised funds of at least Rs 5 lakhs.
B) The bank must be included in the Second Schedule of the RBI Act, 1934.
C) The bank must maintain the Cash Reserve Ratio (CRR) with the RBI as per its regulations.
D) The bank must be entirely government-owned to qualify as a Scheduled Bank.

Q.6 Which of the following statements about Non-Scheduled Banks in India is incorrect?
A) Non-scheduled banks are not listed in the Second Schedule of the RBI Act, 1934.
B) Non-scheduled banks can borrow from the RBI only in emergencies.
C) Non-scheduled banks are eligible for membership in clearing houses.
D) District Central Cooperative Banks do not have scheduled status as a matter of RBI policy.

Q.7 Which of the following statements regarding Private Sector Banks in India is incorrect?
A) ICICI Bank was the first private sector bank to be licensed in June 1994 following the Narasimham Committee Report.
B) Private sector banks operate under the Companies Act and the Banking Regulation Act, 1949.
C) Large industrial houses are eligible to set up and operate private sector banks in India.
D) Private sector banks must list their shares on the stock exchange within six years of commencing business

Q.8 Which of the following is not a mandatory requirement for setting up a Universal Bank in the private sector in India?
A) Initial minimum paid-up capital of Rs 500 crores.
B) Maintaining a minimum net worth of Rs 500 crores at all times.
C) Achieving priority sector lending targets applicable to scheduled commercial banks.
D) Opening at least 50% of its branches in unbanked rural areas.

Q.9 Which of the following is not a characteristic of Local Area Banks (LABs) in India?
A) LABs are registered as public limited companies under the Companies Act.
B) LABs are classified as scheduled banks by the RBI.
C) LABs have jurisdiction over a maximum of three contiguous districts.
D) LABs must ensure at least 40% of their total credit is lent to priority sectors.

Q.10 What is the primary objective behind the establishment of Local Area Banks (LABs)?
A) To promote large-scale corporate investments in rural areas.
B) To mobilize rural savings and provide local credit to bridge gaps in financial access.
C) To increase urban banking penetration and international trade financing.
D) To facilitate large industrial houses in setting up regional banks.

Q.11 What was the primary reason for the establishment of Regional Rural Banks (RRBs) in 1975?
A) To promote international trade and foreign investments in rural areas.
B) To function as large commercial banks in urban and semiurban regions.
C) To provide credit and financial services specifically tailored for rural development.
D) To replace cooperative banks and commercial banks in rural areas entirely.

Q.12 According to the Regional Rural Banks (Amendment) Act, 2015, which of the following statements is incorrect regarding the shareholding structure of a Regional Rural Bank (RRB)?
A) The authorized share capital of an RRB is Rs. 2000 crore.
B) The Central Government holds 50% of the issued capital, the State Government 15%, and the Sponsor Bank 35%.
C) The Central and State Governments must always hold at least 75% of the total paid-up capital.
D) RRBs can raise share capital from sources other than the Central Government, State Governments, and Sponsor Banks, subject to conditions.

Q.13 Which of the following statements about Differentiated Banks in India is incorrect?
A) Differentiated banks serve a specific demographic or financial segment.
B) The concept of differentiated banks was first discussed in 2007 and later explored in RBI’s 2013 paper on banking structure.
C) The Nachiket Mor Committee (2013) recommended the establishment of Payments Banks (PBs) and Small Finance Banks (SFBs) to promote financial inclusion.
D) Differentiated banks operate in all financial sectors, including large-scale corporate and investment banking.

Q.14 Which of the following is not a permissible activity for Payments Banks in India?
A) Accepting demand deposits in the form of savings and current accounts.
B) Investing up to 75% of their demand deposit balance in government securities eligible for SLR.
C) Issuing credit cards to their customers.
D) Handling third-party products like insurance and mutual fund distribution

Q.15 What is the minimum paid-up capital requirement for setting up a Payments Bank in India?
A) ₹500 crore
B) ₹200 crore
C) ₹100 crore
D) ₹50 crore

Q.16 What is the minimum paid-up equity capital requirement for setting up a Small Finance Bank (SFB) in India, as per the latest guidelines?
A) ₹100 crore
B) ₹200 crore
C) ₹500 crore
D) ₹50 crore

Q.17 As per RBI guidelines, what percentage of their Adjusted Net Bank Credit (ANBC) or Credit Equivalent of Off-Balance Sheet Exposures (CEOBE) must Small Finance Banks lend to priority sectors?
A) 40%
B) 50%
C) 60%
D) 75%

Q.18 Which of the following Acts marked the beginning of the cooperative banking movement in India?
A) The Cooperative Societies Act, 1912
B) The Cooperative Societies Act, 1904
C) The Banking Regulation Act, 1949
D) The Reserve Bank of India Act, 1934

Q.19 Which of the following institutions are part of the three tier short-term rural credit structure in India?
A) State Cooperative Banks (SCBs), Primary Agricultural Credit Societies (PACS), and Regional Rural Banks (RRBs)
B) Central Cooperative Banks (CCBs), State Cooperative Banks (SCBs), and Primary Agricultural Credit Societies (PACS)
C) State Cooperative Banks (SCBs), Land Development Banks (LDBs), and Urban Cooperative Banks (UCBs)
D) Primary Agricultural Credit Societies (PACS), Urban Cooperative Banks (UCBs), and Microfinance Institutions (MFIs)

Q.20 Which of the following is the primary reason why most Urban Cooperative Banks (UCBs) are not permitted to deal in foreign exchange?
A) Their lending is primarily to MSMEs and individuals
B) High risks associated with forex transactions
C) They come under the regulatory purview of NABARD
D) They are registered under the Multi-State Cooperative Societies Act, 2002

Q.21 Which of the following regulatory bodies supervises the banking operations of Urban Cooperative Banks (UCBs) in India?
A) NABARD
B) Reserve Bank of India (RBI)
C) State Governments
D) Ministry of Finance, Government of India

Answer:

Q1: B
Q2: A
Q3: C
Q4: D
Q5: D
Q6: C
Q7: C
Q8: D
Q9: B
Q10: B
Q11: C
Q12: C
Q13: D
Q14: C
Q15: C
Q16: B
Q17: D
Q18: B
Q19: B
Q20: B
Q21: B