Q290. Which organisation decides the bank rate used in India?
[SSC MTS (2022 cycle), 12 May Shift 3 2023]
A. State Bank of India
B. Reserve Bank of India
C. Union Ministry of Finance
D. SEBI
Answer: (B) Reserve Bank of India
Explanation: The RBI establishes the bank rate as a central-bank policy instrument. Commercial banks set their own customer-lending rates within regulation, but they do not individually determine the country’s bank rate.
Q289. Who serves as chairperson of India’s statutory Monetary Policy Committee?
[SSC MTS, 14 Jun Shift 3 2023]
A. Governor of the RBI
B. Comptroller and Auditor General
C. Deputy Governor of RBI
D. Union Finance Minister
Answer: (A) Governor of the RBI
Explanation: The RBI Governor is ex officio chair of the six-member Monetary Policy Committee, constituted under the amended Reserve Bank of India Act. The committee votes on the policy repo rate to meet inflation objectives.
Q288. Which RBI report released in June 2022 outlined the payment systems agenda to 2025?
[SSC MTS (2022 cycle), 2 May Shift 3 2023]
A. Digital Currency Vision 2030
B. Payments Vision 2025
C. Digital Currency Vision 2025
D. Payments Vision 2030
Answer: (B) Payments Vision 2025
Explanation: Payments Vision 2025 sets out RBI’s strategic ambitions for secure, accessible and efficient digital payment systems. The initiative emphasises innovation and customer protection while developing the payment ecosystem.
Q287. Which organisation led the Self-Help Group–Bank Linkage movement with RBI backing?
[SSC MTS, 4 Sep Shift 3 2023]
A. SEBI
B. Indian Bank
C. NABARD
D. Any individual cooperative bank
Answer: (C) NABARD
Explanation: NABARD played the pioneering development role in connecting self-help groups with the formal banking network. The programme channels savings and credit to underserved households, using collective groups to strengthen access and financial inclusion.
Q286. An SSC exam asked which RBI scheme enabled the revival of outward travel and family remittances during the first quarter of FY2022–23. Which scheme was it?
[SSC MTS, 14 Sep Shift 3 2023]
A. Liberalised Remittance Scheme
B. Regular Remittance Scheme
C. Liquid Remittances Scheme
D. Foreign Remittances Scheme
Answer: (A) Liberalised Remittance Scheme
Explanation: The Liberalised Remittance Scheme permits eligible resident individuals to remit funds abroad for prescribed current and capital account purposes, within applicable limits. Foreign travel, support for relatives and gifts are examples of permitted remittance categories.
Q285. What is the banking term for RBI purchases or sales of government securities in the open market?
[SSC MTS (2022 cycle), 19 Jun Shift 3 2023]
A. Marginal Standing Facility
B. Credit Ceiling
C. Open Market Operations
D. Liquidity Adjustment Facility
Answer: (C) Open Market Operations
Explanation: Open market operations involve RBI trading government securities to adjust monetary liquidity. Buying securities generally adds bank reserves; selling them generally absorbs liquidity. Such operations differ from standing funding windows and interbank market rates.
Q284. Which activity best describes the contribution of commercial banks to economic development?
[SSC MTS, 5 Sep Shift 2 2023]
A. Mobilising savings and financing economic activity
B. Regulating trading on stock exchanges
C. Personally setting the national inflation target
D. Holding all government forex reserves
Answer: (A) Mobilising savings and financing economic activity
Explanation: Commercial banks collect deposits and extend loans for consumption, trade and investment. Their payment and financial-intermediation services facilitate production and growth. Securities oversight and official reserve management belong to separate public financial authorities.
Q283. What is the core business of a commercial bank?
[SSC MTS, 12 Sep Shift 1 2023]
A. Minting coins
B. Determining monetary policy
C. Receiving deposits and lending funds
D. Issuing every type of legal tender
Answer: (C) Receiving deposits and lending funds
Explanation: Commercial banks provide deposit accounts and credit to households and firms. Their ordinary activities differ from a central bank’s roles in monetary policy, monetary stability and regulation of the financial system.
Q282. Which revenue stream is ordinarily the main earnings source for a commercial bank?
[SSC MTS, 12 Sep Shift 3 2023]
A. Customer donations
B. Equity trading profits alone
C. Government grants
D. Interest charged on loans and advances
Answer: (D) Interest charged on loans and advances
Explanation: Loans and advances generate interest income for banks. The interest rate spread after deposit and funding costs helps cover operating expenses and risk. Banks may also earn fee income and investment returns.
Q281. What is the primary informational value of a bank statement to an account holder?
[SSC MTS, 14 Sep Shift 2 2023]
A. Tracking transactions, income and spending
B. Moving money automatically to a different bank
C. Advertising financial products
D. Providing a bank locker
Answer: (A) Tracking transactions, income and spending
Explanation: A bank statement lists account transactions over a period, normally including credits, debits and applicable charges. Reviewing it helps reconcile balances, budget expenses and identify discrepancies or possible unauthorised transactions.
