Banking Awareness is one of the most crucial sections in SBI and IBPS exams where smart preparation can help you score faster and more accurately From banking terms to financial institutions and recent updates even small concepts can make a big difference in your final result.
This Banking Awareness MCQs Practice Set 1: Free Mock Test for SBI & IBPS 2025 is designed to give you real exam level practice based on the latest syllabus and question trends The MCQs focus on frequently asked topics that are highly relevant for upcoming banking exams.
Whether you are starting your banking preparation or doing last minute revision this free mock test will improve your accuracy speed and confidence Practice consistently and turn Banking Awareness into a high scoring section in SBI and IBPS 2025 exams.
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Banking Awareness MCQs Practice Set 1: Free Mock Test for SBI & IBPS 2025
Q1. Which is the central bank of India?
A) SBI
B) RBI
C) NABARD
D) SEBI
Answer: B) RBI
Q2. When was the RBI established?
A) 1932
B) 1934
C) 1935
D) 1947
Answer: C) 1935
Q3. Where is the headquarters of RBI located?
A) New Delhi
B) Mumbai
C) Kolkata
D) Chennai
Answer: B) Mumbai
Q4. What is the full form of CRR?
A) Cash Reserve Ratio
B) Credit Reserve Ratio
C) Cash Rate Ratio
D) Credit Rate Ratio
Answer: A) Cash Reserve Ratio
Q5. What does SLR stand for?
A) Statutory Liquidity Ratio
B) Special Liquidity Ratio
C) Statutory Loan Ratio
D) Special Loan Ratio
Answer: A)
Q6. Who has the authority to issue currency notes in India?
A) Government of India
B) RBI
C) SBI
D) Ministry of Finance
Answer: B)
Q7. Who determines the Bank Rate?
A) SEBI
B) SBI
C) RBI
D) NABARD
Answer: C)
Q8. What is the full form of ATM?
A) Automated Teller Machine
B) Automated Transfer Machine
C) Any Time Money
D) All Time Machine
Answer: A)
Q9. What is the IFSC code used for?
A) Opening an account
B) Checkbook
C) Electronic Fund Transfer
D) Loan
Answer: C)
Q10. What is the full form of NEFT?
A) National Electronic Funds Transfer
B) New Electronic Fund Transfer
C) National Easy Fund Transfer
D) None
Answer: A)
Q11. What type of transactions are done using RTGS?
A) Small
B) Large
C) International
D) Cash
Answer: B)
Q12. Who operates UPI? A) RBI
B) NPCI
C) SBI
D) SEBI
Answer: B)
Q13. What is the main function of NABARD?
A) Share market regulation
B) Rural development
C) Currency issuance
D) Insurance
Answer: B)
Q14. Which is the largest public sector bank in India?
A) PNB
B) Bank of Baroda
C) SBI
D) Canara Bank
Answer: C)
Q15. What does KYC stand for?
A) Know Your Customer
B) Keep Your Cash
C) Know Your Credit
D) None
Answer: A)
Q16. What is the validity period of a check?
A) 6 months
B) 1 year
C) 3 months
D) 1 month
Answer: C)
Q17. What does NPA mean in banking?
A) New Payment Account
B) Non-Performing Asset
C) National Property Act
D) None
Answer: B)
Q18. Which organization controls inflation?
A) SEBI
B) RBI
C) NABARD
D) SBI
Answer: B)
Q19. What is the repo rate?
A) Interest given to customers
B) Loans given to banks
C) Loans given by RBI to banks
D) Loans to the government
Answer: C)
Q20. SEBI is related to which sector?
A) Banking
B) Insurance
C) Stock market
D) Taxation
Answer: C)
Q21. Which is the insurance regulatory body in India?
A) SEBI
B) RBI
C) IRDAI
D) NABARD
Answer: C)
Q22. What type of account is a Fixed Deposit?
A) Current
B) Savings
C) Fixed Term
D) Jan Dhan
Answer: C)
Q23. Under whom does the Banking Ombudsman come?
A) SBI
B) RBI
C) Government
D) SEBI
Answer: B)
Q24. Which organization promotes digital payments in India? A) NPCI
B) SEBI
C) IRDAI
D) NABARD
Answer: A)
Q25. Who announces the monetary policy?
A) Prime Minister
B) Finance Minister
C) RBI Governor
D) President
Answer: C)
Q26. What is charged for not maintaining the minimum balance in a bank account?
A) Interest
B) Bonus
C) Penalty
D) Profit
Answer: C)
Q27. What is the full form of MSME?
A) Medium Small Micro Enterprises
B) Micro Small Medium Enterprises
C) Main Small Medium Enterprises
D) None
Answer: B)
Q28. What does CASA stand for in banking?
A) Current and Saving Account
B) Credit and Saving Account
C) Cash and Saving Account
D) None
Answer: A)
Q29. Which was the first bank in India?
A) SBI
B) Bank of Hindustan
C) PNB
D) Allahabad Bank
Answer: B)
Q30. What is the main advantage of digital banking?
A) Time saving
B) More paperwork
C) Higher fees
D) Limited service
Answer: A)
Conclusion
A strong grip on Banking Awareness can significantly boost your score in SBI and IBPS exams Regular practice with targeted MCQs helps improve accuracy and conceptual clarity Make this mock test a part of your daily preparation to stay confident and exam-ready.