SSC CGL Economy – Banking in India & the RBI – Level 1 · Warm-up · Tier I Level

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SSC CGL Economy – Banking in India & the RBI – Level 1 · Warm-up · Tier I Level – 11 questions, subject: Indian Economy. Every question has the correct answer with a one-line explanation; tap "Show Answer". Free practice for TNPSC, UPSC, SSC, Bank and RRB exams – Shanmugam IAS Academy, Coimbatore.

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1.  
One-line recallThe Reserve Bank of India started functioning on:

Correct Answer: A [1 April 1935]

Explanation:

Set up under the RBI Act, 1934; began on 1 April 1935 (nationalised 1949).

2.  
The first Indian Governor of the RBI was:

Correct Answer: B [C D Deshmukh]

Explanation:

rbi.org.in: Sir Osborne Smith was the first Governor; Sir C D Deshmukh the first Indian Governor.

3.  
Regional Rural Banks were first set up on:

Correct Answer: D [2 October 1975]

Explanation:

RRBs – 2 October 1975; 1969 and 1980 are the nationalisation dates; 1982 is NABARD.

4.  
CRR is the share of deposits (NDTL) that banks must keep:

Correct Answer: C [as cash with the RBI]

Explanation:

CRR Cash Rests with RBI (RBI Act, Section 42).

5.  
The Monetary Policy Committee is constituted under which section of the RBI Act, 1934?

Correct Answer: C [Section 45ZB]

Explanation:

Act Finder: MPC – s. 45ZB; CRR – s.

6.  
The second round of bank nationalisation (6 banks) took place on:

Correct Answer: D [15 April 1980]

Explanation:

14 banks on 19 July 1969; 6 more on 15 April 1980.

7.  
To control inflation, the RBI will generally:

Correct Answer: A [raise the repo rate]

Explanation:

Dear Money Arrow: rates up and OMO sell to fight inflation.

8.  
Fill in the blankRegional Rural Banks are owned jointly by the Centre, the State and ______.

Correct Answer: B [a sponsor bank]

Explanation:

RRB ownership: Centre, State Government and a sponsor bank.

9.  
A loan becomes a non-performing asset when interest or instalment remains overdue for more than:

Correct Answer: D [90 days]

Explanation:

RBI prudential norms: overdue for more than 90 days.

10.  
Which is a qualitative tool of monetary policy?

Correct Answer: A [Moral suasion]

Explanation:

Moral suasion, margin requirement and direct action are qualitative (selective) tools.

11.  
Statement-based
I. The RBI was nationalised in 1949.
II. The Imperial Bank of India was renamed the State Bank of India in 1969.
Which is/are correct?

Correct Answer: C [Only I]

Explanation:

SBI was formed on 1 July 1955, not 1969.

➤ Full notes, shortcuts and every answer explained – SSC CGL 2026 Indian Economy book (₹149): www.shanmugamiasacademy.in/study-materials/ssc-cgl-indian-economy

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