Indian Economy PYQ – Banking and Financial Institutions

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Indian Economy PYQ – Banking and Financial Institutions – 15 questions, subject: 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.  
PTGS 2021
MUDRA provides loans to

Correct Answer: D [Micro-enterprises]

Explanation:

MUDRA (Micro Units Development and Refinance Agency, 2015) provides loans to micro enterprises under its Shishu, Kishor and Tarun categories.

2.  
Special Competitive Exam 2025
Principal objectives of the MUDRA Bank :
(i) Register all MFIs
(ii) To develop agricultural sector in India
(iii) Bring stability to the micro finance system

Correct Answer: C [(i) and (iii) only]

Explanation:

MUDRA's objectives include registering and rating micro-finance institutions and bringing stability to the micro-finance system, but not developing the agricultural sector.

3.  
PTGS 2021
Development Financial Institutions are
1. IFCI
2. ICICI
3. IDBI
4. UTI

Correct Answer: D [1, 2, 3 and 4]

Explanation:

IFCI, ICICI, IDBI and UTI are all development financial institutions set up to provide long-term finance for industrial development.

4.  
GSCE 2021 · Road Inspector 2023
Self Help Group – Bank Linkage Programme was started in

Correct Answer: B [1992]

Explanation:

NABARD launched the SHG-Bank Linkage Programme as a pilot in 1992, now one of the world's largest micro-finance programmes.

5.  
Library Service 2023
Micro finance refers to

Correct Answer: B [The provision of financial services to low income groups]

Explanation:

Micro finance means providing financial services such as small loans, savings and insurance to low-income groups who lack access to banking.

6.  
CEGS 2022
NABARD has been set up in

Correct Answer: A [1982]

Explanation:

NABARD was set up on 12 July 1982 under the NABARD Act 1981, on the recommendation of the Shivaraman Committee (CRAFICARD).

7.  
JR 2023
The apex bank of rural credit is

Correct Answer: A [NABARD]

Explanation:

NABARD is the apex bank for agricultural and rural credit, refinancing and supervising state cooperative banks and regional rural banks.

8.  
Mass Interviewer 2023
Which of the following is a refinance institution?

Correct Answer: C [National Bank for Agriculture and Rural Development]

Explanation:

NABARD is a refinance institution: it lends not directly to farmers but to cooperative banks, regional rural banks and commercial banks that provide rural credit.

9.  
AJ 2023
Which banks do not come under NABARD?

Correct Answer: C [Export Promotion Banks]

Explanation:

NABARD supervises and refinances state and district cooperative banks and regional rural banks, whereas export finance is handled by the EXIM Bank, so export promotion banks do not come under it.

10.  
CBT 2022
Match List I with List II :
(a) NABARD – 1. Industrial finance (loan)
(b) HDFC – 2. Micro finance (loan)
(c) IDBI – 3. Housing finance (loan)
(d) SHG – 4. Agriculture finance (loan)

Correct Answer: D [4 3 1 2]

Explanation:

NABARD deals with agriculture and rural finance (4), HDFC with housing loans (3), IDBI with industrial finance (1) and SHGs with micro finance (2), giving 4 3 1 2.

11.  
Group 1 2021
In January 2019, the Government of India approved the merger of three banks. Which of the following does not figure in the merger?

Correct Answer: D [Lakshmi Vilas Bank]

Explanation:

The January 2019 merger combined Vijaya Bank and Dena Bank with Bank of Baroda; Lakshmi Vilas Bank was not part of it.

12.  
CEGS 2022
Name the first modern bank in Tamil Nadu started by the British in 1843

Correct Answer: D [Bank of Madras]

Explanation:

The Bank of Madras (1843) was the British-founded presidency bank in Madras; it later merged into the Imperial Bank in 1921, which became SBI in 1955.

13.  
Reporter 2022
Which of the following subjects comes under the Central Government?

Correct Answer: A [Banking]

Explanation:

Banking is entry 45 of the Union List in the Seventh Schedule, so it is a central subject, while agriculture, prisons and public health are state subjects.

14.  
Mass Interviewer 2023
Which scheme was launched by the Government of India to connect more and more people with banking services?

Correct Answer: D [PM Jan Dhan Yojana]

Explanation:

Pradhan Mantri Jan Dhan Yojana, launched on 28 August 2014, aims at financial inclusion with zero-balance accounts, RuPay cards and accident insurance.

15.  
CTS (Non-Interview Posts) 2024
Which country has become the first European country to accept the Unified Payments Interface (UPI) system?

Correct Answer: C [France]

Explanation:

France became the first European country to accept UPI through an NPCI International agreement, with UPI payments launched at the Eiffel Tower in February 2024.

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