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Top 30 Banking & Financial Awareness Questions in Hindi for IBPS, SBI

Q1. What is the full form of 'KYC' in banking terminology, which is mandatory for opening a new bank account? A) Know Your Character B) Know Your Customer C) Keep Your Cash D) Know Your Credit Answer: B) Know Your Customer Explanation: KYC (Know Your Customer) is a process by which banks obtain information about the identity and address of the customers to prevent money laundering. Q2. Which of the following is an example of an 'Unsecured Loan'? A) Home Loan B) Car Loan C) Personal Loan D) Loan Against Property Answer: C) Personal Loan Explanation: A Personal Loan is an unsecured loan because it does not require any collateral or security to be pledged to the bank. Q3. In the context of Insurance, what does the term 'Premium' mean? A) The total amount of coverage B) The amount paid by the insured to the insurer C) The tax paid to the government D) The bonus received at maturity Answer: B) The amount paid by the insured to the insurer Explanation: A Premium is the amount of money an individual or business pays for an insurance policy to get coverage. Q4. What is the minimum and maximum CIBIL Score range in India? A) 100 to 1000 B) 300 to 900 C) 0 to 500 D) 200 to 800 Answer: B) 300 to 900 Explanation: The CIBIL Score ranges between 300 and 900. A score above 750 is generally considered good for loan approval. Q5. Which organization regulates the Insurance sector in India? A) RBI (Reserve Bank of India) B) SEBI (Securities and Exchange Board of India) C) IRDAI (Insurance Regulatory and Development Authority of India) D) NABARD Answer: C) IRDAI Explanation: IRDAI acts as the regulator of the insurance industry in India and protects the interests of policyholders. Q6. Which type of insurance policy provides coverage for a specific period of time and pays out only if the policyholder dies during that term? A) Whole Life Insurance B) Term Insurance C) Endowment Plan D) Money Back Policy Answer: B) Term Insurance Explanation: Term Insurance is the purest form of life insurance that provides financial protection to the nominee only if the insured passes away during the policy term. Q7. What is the interest rate at which the Reserve Bank of India (RBI) lends money to commercial banks called? A) Reverse Repo Rate B) Repo Rate C) CRR (Cash Reserve Ratio) D) SLR (Statutory Liquidity Ratio) Answer: B) Repo Rate Explanation: Repo Rate is the rate at which the central bank (RBI) lends money to commercial banks in the event of any shortfall of funds. Q8. In a 'Home Loan', the property being purchased acts as: A) Guarantor B) Collateral C) Unsecured Asset D) Liability Answer: B) Collateral Explanation: In a Home Loan, the house or property serves as collateral (security) for the loan until the full amount is repaid. Q9. What is the validity period of a Cheque in India from the date of issue? A) 1 Month B) 3 Months C) 6 Months D) 12 Months Answer: B) 3 Months Explanation: As per RBI guidelines, a cheque is valid for a period of 3 months from the date mentioned on it. Q10. Which of the following is NOT covered under a standard 'Health Insurance' policy? A) Hospitalization Expenses B) Ambulance Charges C) Pre-existing diseases (from Day 1 usually) D) Pre and Post Hospitalization Answer: C) Pre-existing diseases (from Day 1 usually) Explanation: Most Health Insurance plans have a waiting period (usually 2-4 years) before they cover pre-existing diseases. Q6. Which type of insurance policy provides coverage for a specific period of time and pays out only if the policyholder dies during that term? A) Whole Life Insurance B) Term Insurance C) Endowment Plan D) Money Back Policy Answer: B) Term Insurance Explanation: Term Insurance is the purest form of life insurance that provides financial protection to the nominee only if the insured passes away during the policy term. Q7. What is the interest rate at which the Reserve Bank of India (RBI) lends money to commercial banks called? A) Reverse Repo Rate B) Repo Rate C) CRR (Cash Reserve Ratio) D) SLR (Statutory Liquidity Ratio) Answer: B) Repo Rate Explanation: Repo Rate is the rate at which the central bank (RBI) lends money to commercial banks in the event of any shortfall of funds. Q8. In a 'Home Loan', the property being purchased acts as: A) Guarantor B) Collateral C) Unsecured Asset D) Liability Answer: B) Collateral Explanation: In a Home Loan, the house or property serves as collateral (security) for the loan until the full amount is repaid. Q9. What is the validity period of a Cheque in India from the date of issue? A) 1 Month B) 3 Months C) 6 Months D) 12 Months Answer: B) 3 Months Explanation: As per RBI guidelines, a cheque is valid for a period of 3 months from the date mentioned on it. Q10. Which of the following is NOT covered under a standard 'Health Insurance' policy? A) Hospitalization Expenses B) Ambulance Charges C) Pre-existing diseases (from Day 1 usually) D) Pre and Post Hospitalization Answer: C) Pre-existing diseases (from Day 1 usually) Explanation: Most Health Insurance plans have a waiting period (usually 2-4 years) before they cover pre-existing diseases.