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CAIIB BRBL MCQ

Q. State which of the following statements are True?

(i) A public sector bank is a body corporate created under a special
statute.
(ii) A banking company is registered under the Banking Regulation
Act.
(iii) Co-operative banks are registered under the Multi-State
Cooperative Societies Act or a State Co-operative Societies Act.
a) (i) and (ii) only
b) (i) and (iii) only
c) (i), (ii) and (iii)
d) (ii) and (iii) only
Q. Under which Act Reserve Bank was constituted?
a) Banking Regulation Act
b) RBI Act
c) Companies Act
d) None of the above
Q. Which of the following is/are false?
(i) Central Government can give direction to the Reserve Bank.
(ii) All kinds of business of banks are regulated only by the Reserve
Bank.
(iii) Central Government is the primary regulator of banks.
(iv) State governments have no control over co-operative banks.
a) (l) and (II) only
b) (ii) only
c) (iii) and (IV) only
d) (ii), (iii) and (IV) only
Q. Co-operative banks operating In different states are registered
under the following:

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a) State Co-operative Societies Act

b) Multi-State Cooperative Societies Act
c) RBI Act
d) Banking Regulation Act

Q. The _____ and the Government of India exercise control over

banks right from the opening of the banks to their winding up by
virtue of the powers conferred under Banking Regulation Act, 1949.
a) Reserve Bank of India
b) Deputy in-charge
c) Co-operative Society
d) Bank Nodal Manager
Q. A banker can refuse to open accounts of undesirable persons
and further, the opening of such accounts is subject to fulfilment of
certain conditions like proper identification and compliance With
Know Your Customer (KYC) norms etc.
a) True
b) False
c) Partially true
d) Can't say
Q. Every banking company has to use the "bank" as part of its name
(Vide, Section 7 of the Act) and no company other than a banking
company can use the words "bank", "banker", "banking" as part of
its name.
a) True
b) False
c) Partially True
d) Can't say
Q. The State Bank of India was constituted under the State Bank of
India Act, 1955
while the seven associate/ subsidiary banks were constituted under
the State Bank (Subsidiary Banks) Act, 1959. Overtime the five out
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of seven subsidiaries/associates were merged with parent SBI and

this process was completed the FY 2017-18.
a) True
b) False
Q. Which of the following is/are True?
(i) The Banking Regulation Act. 1949 IS a legislation that regulates
Banks in India. Passed as the Banking Companies Act 1949, its carne
into force from 16 March 1949.
(ii) It became applicable in Jammu and Kashmir from 1956.
(iii) Initially, this law was applicable to Banking Companies alone.
However, in 1965,
amongst other amendments, by adding Section 56, the Act was
made applicable to Co-operative Banks also.
a) Only (i)
b) Only (i) & (ii)
c) only (ii) & (iii)
d) (i), (ii), (iii)
Q. Banking companies are not permitted to give dividend until
all___ are written Off
a) Bad debts
b) Expenses
c) Capitalised expenses
d) Amortisation of dividends
11. Which of the following statements are true.
(i) A temporary branch for less than thirty days in a town, where a
bank has an existing branch, does not require permission from
Reserve Bank
(ii) A company whose banking licence is rejected can undertake
business as a moneylender or undertake other business.
(iii) The decision of Reserve Bank to revoke licence IS final and no
appeal lies from it
(IV) Banking companies are permitted to give brokerage up two -and-
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halt per cent of the paid-up value of shares.

a) (i) and (ii)
b) (i) , (ii) and (iii)
c) (i), (ii) and (iv)
d) all the above
Q. A director of a banking company should not have ____in any
other company
a) Beneficial interest
b) Any interest
c) Substantial Interest
d) Majority interest
Q. Which of the following statements are false
(i) The maximum period of office that that may be held continuously
by an ordinary director in a banking company is eight years.
(ii) The decisions of the board of directors during the period when
the board's constitution detective shall be void.
(in) The post of chairman of a banking company may be on part-time
basis.
(iv) The chairman of a banking company can hold office only for a
maximum period of eight years.
a) (i) and (ii)
b) (ii) and (iii)
c) (iii) and (iv)
d) (ii) and (iv)

Q. Reserve Bank may issue directions to banking companies und

Section 21 f BR Act on____
a) Audit
b) Loans and advances
c) Capital structure
d) None of the above

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Q. Which of the following statement is/are true?

(i) Reserve Bank can Issue directions on loans and advances under
Section 21 of the Banking Regulation Act.
(ii)) Regulation of credit to different sectors of the economy is known
as selective credit
(iii) Banks are tree to lend any amount to their directors. control.
(iv) Banks have to file a return to Reserve Bank regarding unclaimed
deposits under Section 26 of the BR Act.
a) (i) and (ii)
b) (ii) and (iii)
c) (i) and (iii)
d) (i), (ii) and (iv)
Q. The minimum amount, out of the net profit which is transferable
to the reserve fund each year after adjustment/provision towards
bonus to staff by the banks incorporated in India is____
a) 25 per cent
b) 20 per cent
c) 10 per cent
d) There are no specifications

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