20 questionswith explanationsfor RAS, Patwari, VDO and other Rajasthan exams
The Reserve Bank of India was set up on the recommendations of which body?
Answer: (2) Hilton Young Commission
Explanation
The RBI was set up on the recommendations of the Hilton Young Commission (Royal Commission on Indian Currency and Finance, 1926).
The central office of the RBI was initially located in which city before being permanently moved to Mumbai (Bombay) in 1937?
Answer: (3) Kolkata (Calcutta)
Explanation
The RBI's central office was first set up in Calcutta and was permanently moved to Bombay in 1937.
In India, one-rupee currency notes are issued by:
Answer: (4) Government of India (Ministry of Finance)
Explanation
One-rupee notes are issued by the Government of India and bear the signature of the Finance Secretary; all other notes are issued by the RBI.
Consider the following statements about the Pradhan Mantri MUDRA Yojana (PMMY): 1. It was launched in April 2015 to provide collateral-free loans to non-corporate, non-farm micro enterprises. 2. Loans up to ₹50,000 are covered under its 'Shishu' category. 3. MUDRA Ltd. lends directly to the borrowers through its own branches. Which of the statements given above is/are correct?
Answer: (1) 1 and 2 only
Explanation
PMMY (8 April 2015) gives collateral-free loans with Shishu covering up to ₹50,000; MUDRA Ltd. does not lend directly but refinances banks, NBFCs and MFIs, so statement 3 is wrong.
As mandated by the RBI from 1 October 2019, new floating-rate retail loans (such as home loans) and loans to micro and small enterprises by banks must be linked to:
Answer: (3) An external benchmark such as the repo rate
Explanation
From 1 October 2019 such loans must be linked to an external benchmark (repo rate, 3- or 6-month T-bill yield, or another FBIL benchmark), replacing internal benchmarks like MCLR.
Consider the following statements about payments banks in India: 1. They cannot advance loans to their customers. 2. As per RBI norms (2026), they may hold an end-of-day balance of up to ₹5 lakh per individual customer. Which of the statements given above is/are correct?
Answer: (1) 1 only
Explanation
Payments banks cannot lend; since April 2021 their end-of-day balance limit is ₹2 lakh per individual customer, not ₹5 lakh.
The concept of 'payments banks' in India was recommended by the RBI committee on comprehensive financial services for small businesses and low-income households, headed by:
Answer: (4) Nachiket Mor
Explanation
The Nachiket Mor Committee (report 2014) recommended payments banks to widen financial inclusion.
Match List-I (Committee) with List-II (Subject): List-I: A. Narasimham Committee (1991) B. Tarapore Committee C. Urjit Patel Committee D. Malhotra Committee List-II: 1. Insurance sector reforms 2. Monetary policy framework 3. Banking/financial sector reforms 4. Capital account convertibility Choose the correct code:
Answer: (2) A-3, B-4, C-2, D-1
Explanation
Narasimham – financial sector reforms; Tarapore – capital account convertibility; Urjit Patel – monetary policy framework (2014); R.N. Malhotra – insurance reforms.
A bank loan is classified as a Non-Performing Asset (NPA) when interest or principal instalment remains overdue for more than:
Answer: (3) 90 days
Explanation
Under RBI norms a term loan becomes an NPA when interest or principal is overdue for more than 90 days.
Under the Insolvency and Bankruptcy Code, 2016, the Adjudicating Authority for the insolvency resolution of companies is:
Answer: (2) National Company Law Tribunal
Explanation
For companies and LLPs the NCLT is the Adjudicating Authority under IBC; the DRT handles individuals and partnership firms.
Consider the following statements about the Pradhan Mantri Jan Dhan Yojana (PMJDY): 1. It was launched in August 2014. 2. A minimum balance of ₹500 must be maintained in the account. 3. Account holders are given a RuPay debit card with in-built accident insurance cover. Which of the statements given above are correct?
Answer: (3) 1 and 3 only
Explanation
PMJDY was launched on 28 August 2014; accounts are zero-balance and come with a RuPay card carrying accident insurance.
Which of the following payment systems is NOT operated by the National Payments Corporation of India (NPCI)?
Answer: (2) NEFT
Explanation
NEFT (like RTGS) is owned and operated by the RBI; UPI, RuPay and IMPS are NPCI products.
The Securities and Exchange Board of India (SEBI), first set up as a non-statutory body in 1988, received statutory status in:
Answer: (4) 1992
Explanation
SEBI became a statutory body in 1992 under the SEBI Act, 1992.
The BSE Sensex is a stock market index made up of how many companies?
Answer: (1) 30
Explanation
The Sensex tracks 30 large companies listed on the BSE, with 1978-79 as the base year.
Arrange the following in chronological order of their establishment: 1. State Bank of India 2. Bombay Stock Exchange 3. National Stock Exchange 4. Imperial Bank of India Choose the correct code:
Answer: (4) 2, 4, 1, 3
Explanation
BSE (1875), Imperial Bank of India (1921), SBI (1955, from the Imperial Bank) and NSE (incorporated 1992, trading from 1994).
The Insurance Regulatory and Development Authority of India (IRDAI) is a statutory body set up under which Act, and where is its headquarters?
Answer: (1) IRDA Act, 1999; Hyderabad
Explanation
IRDAI was constituted under the IRDA Act, 1999 and is headquartered in Hyderabad.
In a mutual fund, the Net Asset Value (NAV) per unit means:
Answer: (1) Market value of the scheme's assets minus liabilities, divided by units
Explanation
NAV per unit = (market value of the scheme's assets − liabilities) ÷ number of units outstanding.
In the share capital of a Regional Rural Bank (RRB), the ratio of Central Government : Sponsor bank : State Government is:
Answer: (3) 50 : 35 : 15
Explanation
Under the RRB Act, 1976, the Centre holds 50%, the sponsor bank 35% and the State Government 15% of RRB share capital.
Treasury Bills, money-market instruments regularly issued by the Government of India, are issued in which maturities?
Answer: (2) 91, 182 and 364 days
Explanation
T-Bills are short-term discounted instruments issued in 91-day, 182-day and 364-day tenors.
The Deposit Insurance and Credit Guarantee Corporation (DICGC), which insures bank deposits, is a wholly owned subsidiary of:
Answer: (4) Reserve Bank of India
Explanation
DICGC is a wholly owned subsidiary of the RBI and insures deposits in banks.