Q100. How many major commercial banks were nationalised in India in July 1969?
[WBCS Mains 2018]
A. Twelve
B. Fourteen
C. Eighteen
D. Six
Answer: (B) Fourteen
Explanation: The Government of India nationalised fourteen major commercial banks in July 1969. Six additional banks were nationalised in 1980, although later mergers changed the structure and number of public-sector banks.
Q99. Which group correctly describes liabilities recorded on a commercial bank balance sheet?
[WBCS Mains 2018]
A. Loans advanced, cash and securities
B. Only gold bullion
C. Demand deposits, time deposits and borrowing from the central bank
D. Investment holdings and buildings only
Answer: (C) Demand deposits, time deposits and borrowing from the central bank
Explanation: Deposits owed to customers and borrowings from RBI are liabilities because they represent the bank’s obligations. Loans granted and investments held are assets. Correct classification helps explain banking balance-sheet risks and liquidity.
Q98. Which account of Indian Regional Rural Banks is correct?
[WBCS Mains 2018]
A. They are sponsored by banks, serve defined regions and support rural development
B. They operate only outside India
C. They are wholly private insurance firms
D. They have no rural mandate
Answer: (A) They are sponsored by banks, serve defined regions and support rural development
Explanation: Regional Rural Banks were created to expand credit and banking access in specific rural areas. Sponsored by commercial banks, they combine a regional operational focus with development objectives and regulation under the applicable RRB framework.
Q97. Where a Reserve Bank office is absent, which institution has traditionally performed agent functions on its behalf?
[WBCS Mains 2018]
A. National Stock Exchange
B. State Bank of India
C. SEBI
D. NITI Aayog
Answer: (B) State Bank of India
Explanation: State Bank of India has historically undertaken authorised agency banking duties for RBI, including government banking functions at specified locations. These roles reflect RBI’s responsibility as banker to government and its agency arrangements.
Q96. A movement of ten basis points is equal to which percentage-point change?
[WBCS Mains 2018]
A. 0.10 percentage point
B. 1 percentage point
C. 10 percentage points
D. 0.01 percentage point
Answer: (A) 0.10 percentage point
Explanation: One basis point is one hundredth of a percentage point. Ten basis points therefore equals 0.10 percentage point. This convention enables financial markets to describe small changes in yields and interest rates precisely.
Q95. In an open-market purchase of government bonds, how would RBI generally change banks’ reserves?
[WBCS Mains 2018]
A. Reduce bank reserves immediately
B. Increase banking reserves
C. Eliminate currency deposits
D. Leave money balances necessarily unchanged
Answer: (B) Increase banking reserves
Explanation: When RBI purchases eligible securities it pays the seller and generally creates additional settlement liquidity. Such purchases can add reserves to the banking system, whereas open-market sales usually withdraw them.
Q94. As of January 2018, how many Regional Rural Banks did the cited WBCS paper identify as operating?
[WBCS Mains 2018]
A. 56
B. 59
C. 61
D. 43
Answer: (C) 61
Explanation: The 2018 historical count given in this past-paper item was sixty-one. The number of Regional Rural Banks changes following consolidation and amalgamation, so it must be read as a dated fact rather than a current tally.
Q93. Which category of cooperative banks became eligible under RBI criteria for possible conversion to small finance banks?
[WBCS Mains 2018]
A. Urban cooperative banks
B. State cooperative marketing federations
C. All foreign banks
D. Agricultural warehouse societies
Answer: (A) Urban cooperative banks
Explanation: RBI has allowed eligible urban cooperative banks to pursue a transition into small finance banks subject to prescribed eligibility and licensing conditions. The arrangement aims to strengthen regulatory structure while preserving financial inclusion goals.
Q92. The Base Rate framework historically indicated which benchmark in bank loan pricing?
[WBCS Mains 2018]
A. An obligatory equity market index
B. A minimum internal lending benchmark
C. The foreign exchange conversion price
D. The average rate of income tax
Answer: (B) A minimum internal lending benchmark
Explanation: The Base Rate system was designed to establish transparent minimum pricing for bank loans, subject to specified exceptions. It preceded wider implementation of marginal-cost-based and external benchmark lending rates.
Q91. Which connection did RBI require banks to improve SWIFT transaction controls?
[RRB Group D, 4 Dec, Shift 2 2018]
A. Connecting SWIFT with core banking systems
B. Connecting RTGS with a shipping terminal
C. Connecting NEFT with commodity warehouses
D. Connecting cheque ink readers to taxation portals
Answer: (A) Connecting SWIFT with core banking systems
Explanation: Integrating SWIFT financial messaging with core banking systems strengthens reconciliation and internal controls by reducing unrecorded trade-finance messages. The 2018 direction followed concerns about weaknesses in interbank messaging oversight.
