These essential MCQ questions are selected from the most important topics in RBI Grade B Officer (Phase I and Phase II) examinations 2026. Sections include Indian Economy, Financial System, Banking Awareness, Economic and Social Issues, Finance and Management and Current Affairs. For truely unlimited daily MCQ practice, visit Vooo AI Education.
🏦 RBI Grade B General Awareness
1RBI was nationalised in which year?
Answer: C — 1949
The Reserve Bank of India was nationalised on 1 January 1949 under the Reserve Bank of India (Transfer to Public Ownership) Act, 1948. Before nationalisation, it was a privately held institution (since its establishment in 1935). After nationalisation, all shares were transferred to the Government of India.
The Reserve Bank of India was nationalised on 1 January 1949 under the Reserve Bank of India (Transfer to Public Ownership) Act, 1948. Before nationalisation, it was a privately held institution (since its establishment in 1935). After nationalisation, all shares were transferred to the Government of India.
2The Monetary Policy Committee (MPC) of RBI has how many members?
Answer: C — 6
The Monetary Policy Committee (MPC) of RBI has 6 members — 3 from RBI (including the Governor as Chairperson) and 3 external members appointed by the Government of India. The MPC meets at least 4 times a year to decide the policy repo rate based on inflation targets.
The Monetary Policy Committee (MPC) of RBI has 6 members — 3 from RBI (including the Governor as Chairperson) and 3 external members appointed by the Government of India. The MPC meets at least 4 times a year to decide the policy repo rate based on inflation targets.
3SEBI stands for:
Answer: A — Securities and Exchange Board of India
SEBI (Securities and Exchange Board of India) was established in 1988 and given statutory powers in 1992. It regulates and develops the securities market in India, protecting investors' interests. SEBI's headquarters are in Mumbai. It is equivalent to the SEC in the USA.
SEBI (Securities and Exchange Board of India) was established in 1988 and given statutory powers in 1992. It regulates and develops the securities market in India, protecting investors' interests. SEBI's headquarters are in Mumbai. It is equivalent to the SEC in the USA.
4The inflation target for RBI under the flexible inflation targeting framework is:
Answer: B — 4%
The RBI's inflation target under the flexible inflation targeting framework is 4% (Consumer Price Index based), with a tolerance band of +/- 2% (i.e., 2% to 6%). This framework was adopted in 2016. The Monetary Policy Committee decides interest rates to maintain this inflation target.
The RBI's inflation target under the flexible inflation targeting framework is 4% (Consumer Price Index based), with a tolerance band of +/- 2% (i.e., 2% to 6%). This framework was adopted in 2016. The Monetary Policy Committee decides interest rates to maintain this inflation target.
5Which is the apex bank for agriculture credit in India?
Answer: C — NABARD
NABARD (National Bank for Agriculture and Rural Development) is the apex institution for agriculture and rural development financing in India. It was established on 12 July 1982. NABARD provides refinance to banks for agricultural loans and supervises Regional Rural Banks (RRBs) and cooperative banks.
NABARD (National Bank for Agriculture and Rural Development) is the apex institution for agriculture and rural development financing in India. It was established on 12 July 1982. NABARD provides refinance to banks for agricultural loans and supervises Regional Rural Banks (RRBs) and cooperative banks.
6GDP stands for:
Answer: A — Gross Domestic Product
GDP (Gross Domestic Product) is the total monetary value of all finished goods and services produced within a country's borders in a specific time period. It is the broadest measure of a nation's overall economic output. India calculates GDP at constant prices (2011-12 base year).
GDP (Gross Domestic Product) is the total monetary value of all finished goods and services produced within a country's borders in a specific time period. It is the broadest measure of a nation's overall economic output. India calculates GDP at constant prices (2011-12 base year).
7The term "Repo Rate" refers to:
Answer: B — Rate at which RBI lends to banks
Repo Rate is the interest rate at which RBI lends short-term funds to commercial banks against government securities. When RBI reduces repo rate, borrowing becomes cheaper, stimulating economic activity. Reverse Repo Rate is the rate at which RBI borrows from banks — it is always lower than Repo Rate.
Repo Rate is the interest rate at which RBI lends short-term funds to commercial banks against government securities. When RBI reduces repo rate, borrowing becomes cheaper, stimulating economic activity. Reverse Repo Rate is the rate at which RBI borrows from banks — it is always lower than Repo Rate.
8SWIFT stands for:
Answer: A — Society for Worldwide Interbank Financial Telecommunication
SWIFT (Society for Worldwide Interbank Financial Telecommunication) is a global messaging network used by banks and financial institutions to securely send and receive information about financial transactions. It connects over 11,000 institutions in more than 200 countries.
SWIFT (Society for Worldwide Interbank Financial Telecommunication) is a global messaging network used by banks and financial institutions to securely send and receive information about financial transactions. It connects over 11,000 institutions in more than 200 countries.
9The Banking Regulation Act was passed in:
Answer: C — 1949
The Banking Regulation Act was passed in 1949 to regulate the banking industry in India. It gives the RBI the power to license banks, regulate their operations, inspect their accounts and wind them up if necessary. It applies to all commercial banks including foreign banks operating in India.
The Banking Regulation Act was passed in 1949 to regulate the banking industry in India. It gives the RBI the power to license banks, regulate their operations, inspect their accounts and wind them up if necessary. It applies to all commercial banks including foreign banks operating in India.
10Which is the largest public sector bank in India by assets?
Answer: C — State Bank of India
State Bank of India (SBI) is the largest public sector bank in India by total assets, deposits, loans, branches and number of employees. It was established in 1955 from the Imperial Bank of India. SBI accounts for about 23% of total banking assets in India.
State Bank of India (SBI) is the largest public sector bank in India by total assets, deposits, loans, branches and number of employees. It was established in 1955 from the Imperial Bank of India. SBI accounts for about 23% of total banking assets in India.
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