These essential MCQ questions are selected from the most important topics in IBPS PO, IBPS Clerk, SBI PO, SBI Clerk and RBI Grade B examinations 2026. Sections include Banking Awareness, Quantitative Aptitude, English Language and Reasoning Ability. For truely unlimited daily MCQ practice, visit Vooo AI Education.

🏦 Banking Awareness
1IBPS stands for:
A. Indian Banking Personnel Selection
B. Institute of Banking Personnel Selection
C. Indian Bureau of Personnel Services
D. Institute of Banking and Personnel Services
Answer: B — Institute of Banking Personnel Selection
IBPS conducts examinations for recruitment to various posts in public sector banks across India.
2The Reserve Bank of India was established in:
A. 1935
B. 1947
C. 1950
D. 1969
Answer: A — 1935
The Reserve Bank of India was established on 1 April 1935 under the Reserve Bank of India Act, 1934.
3Which is the largest public sector bank in India?
A. State Bank of India
B. Punjab National Bank
C. Bank of Baroda
D. Canara Bank
Answer: A — State Bank of India
SBI is the largest public sector bank in India by assets, deposits, branches, customers and employees.
4CRR stands for:
A. Credit Reserve Ratio
B. Cash Reserve Ratio
C. Central Reserve Rate
D. Currency Reserve Ratio
Answer: B — Cash Reserve Ratio
CRR is the percentage of a bank's total deposits that must be kept with the RBI as cash reserves. It is a monetary policy tool.
5SLR stands for:
A. Statutory Liquidity Ratio
B. Standard Liquidity Rate
C. State Lending Ratio
D. Statutory Lending Rate
Answer: A — Statutory Liquidity Ratio
SLR is the minimum percentage of deposits that banks must maintain in the form of gold, cash or government securities.
6The repo rate is the rate at which:
A. Banks lend to customers
B. RBI lends to commercial banks
C. Banks lend to each other
D. Government borrows from RBI
Answer: B — RBI lends to commercial banks
The Repo Rate is the interest rate at which RBI lends money to commercial banks in exchange for government securities. Lowering repo rate reduces borrowing costs.
7NEFT stands for:
A. National Electronic Finance Transfer
B. National Electronic Funds Transfer
C. National Efficient Funds Transfer
D. Net Electronic Funds Transfer
Answer: B — National Electronic Funds Transfer
NEFT is a payment system operated by RBI that allows individuals and institutions to transfer funds between banks. It operates 24×7.
8Which bank was nationalised first in India?
A. Bank of India
B. Punjab National Bank
C. 14 banks nationalised together in 1969
D. State Bank of India
Answer: C — 14 banks nationalised together in 1969
In 1969, PM Indira Gandhi nationalised 14 major commercial banks. In 1980, 6 more banks were nationalised. SBI was formed in 1955 from Imperial Bank.
9UPI stands for:
A. Unified Payment Interface
B. Unified Payments Interface
C. Universal Payment Interface
D. United Payment Interface
Answer: B — Unified Payments Interface
UPI is a real-time payment system developed by NPCI (National Payments Corporation of India) that allows instant money transfers through mobile phones.
10NPCI stands for:
A. National Payment Corporation of India
B. National Payments Corporation of India
C. National Banking Corporation of India
D. Net Payments Corporation of India
Answer: B — National Payments Corporation of India
NPCI operates retail payments and settlement systems in India. It launched UPI, RuPay cards, IMPS and other payment systems.

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