Money and Banking MCQs for Competitive Exams 2025–26: Money and banking are essential components of any modern economy, as they support smooth transactions and ensure financial stability. Money functions as a medium of exchange, a measure of value, and a means of saving wealth, making it easier for individuals and businesses to buy and sell goods and services. Commercial banks and financial institutions, along with the Reserve Bank of India (RBI), play a key role in managing the supply and circulation of money. Banks provide services such as accepting deposits, granting loans, and facilitating business activities, while the RBI supervises the banking system, regulates credit, and maintains monetary stability. Together, money and banking contribute significantly to economic development and financial discipline. To support exam aspirants, a set of MCQs on money and banking has been prepared to help strengthen concepts and improve performance in competitive examinations.
Money and Banking – Important MCQs
1. Where is the headquarters of the Reserve Bank of India located?
A. Delhi
B. Mumbai
C. Kolkata
D. Noida
Answer: B
2. The Reserve Bank of India was established on—
A. 1 April 1925
B. 21 April 1930
C. 1 April 1935
D. 1 April 1945
Answer: C
3. In which year was the RBI nationalised?
A. 1947
B. 1949
C. 1969
D. 1974
Answer: B
4. Which bank was merged with Bank of Baroda in 2019?
A. United Bank of India
B. Canara Bank
C. Corporation Bank
D. Dena Bank
Answer: D
5. Vijaya Bank and Dena Bank were merged into—
A. State Bank of India
B. Punjab National Bank
C. Bank of Baroda
D. Canara Bank
Answer: C
6. Which of the following is NOT a function of the RBI?
A. Banker to the Government
B. Issuer of currency
C. Lender of last resort
D. Banker to the public
Answer: D
7. The term “Bank Rate” refers to—
A. Interest charged by private banks
B. Interest charged by central bank to commercial banks
C. Interest charged by commercial banks to customers
D. Interest charged by non-scheduled banks
Answer: B
8. Which monument is printed on the reverse of the ₹200 currency note?
A. Red Fort
B. Sanchi Stupa
C. Ellora Caves
D. Mangalyaan
Answer: C
9. Which structure is shown on the ₹100 currency note?
A. Red Fort
B. Rani ki Vav
C. Chariot of Hampi
D. Sanchi Stupa
Answer: B
10. The reverse side of the ₹50 note depicts—
A. Mangalyaan
B. Red Fort
C. Sanchi Stupa
D. Stone Chariot of Hampi
Answer: D
11. How many angular bleed lines are present on the ₹200 note?
A. 2
B. 4
C. 6
D. 7
Answer: B
12. SIDBI stands for—
A. Small Indian Development Bank for Industry
B. Small Industries Development Bank of India
C. Small Inter Development Bank of India
D. Small Industries and Domestic Bank of India
Answer: B
13. Which initiative aims to resolve stressed assets in the banking sector?
A. Project Sukanya
B. Project Parivartan
C. Project Sashakt
D. Project Samridhi
Answer: C
14. The Indradhanush framework was launched for—
A. Resource mobilisation
B. Revamping public sector banks
C. Private bank restructuring
D. Capacity building in private banks
Answer: B
15. An asset pledged as security for a loan is called—
A. Interest
B. Credit
C. Debit
D. Collateral
Answer: D
16. Financial Inclusion means—
A. Free money transfer
B. Mobile banking only
C. Affordable financial services to weaker sections
D. Only KYC implementation
Answer: C
17. BuyUcoin introduced wholesale trading for—
A. Paper currency
B. Plastic currency
C. Crypto currency
D. Gilt currency
Answer: C
18. The officer appointed by RBI to handle banking complaints is called—
A. Banking Commissioner
B. Banking Ombudsman
C. Banking Lokayukt
D. Central Vigilance Officer
Answer: B
19. Which committee is associated with banking sector reforms in India?
A. Malhotra Committee
B. Kelkar Committee
C. Chelliah Committee
D. Narasimham Committee
Answer: D
20. Who was the first Indian Governor of the Reserve Bank of India?
A. I. G. Patel
B. Manmohan Singh
C. C. D. Deshmukh
D. Raghuram Rajan
Answer: C
21. NABARD stands for—
A. National Bank for Agriculture and Rural Development
B. National Bank for Agri Related Development
C. National Bank for Agriculture and Resource Development
D. National Bank for Asian Research Development
Answer: A
22. Which institution acts as the apex body for rural credit in India?
A. Cooperative Banks
B. Poor Women Banks
C. Cooperative Societies
D. NABARD
Answer: D
23. Which of the following is NOT an employment generation scheme?
A. Prime Minister’s Rozgar Yojana
B. Swarnajayanti Gram Swarozgar Yojana
C. Swarna Jayanti Shahari Rozgar Yojana
D. Pradhan Mantri Jan Dhan Yojana
Answer: D
24. Which of the following is NOT a pillar of Digital India?
A. Jan Dhan Yojana
B. Broadband Highways
C. Universal Access to Mobile Connectivity
D. Electronics Manufacturing
Answer: A
25. The RBI was established in which year?
A. 1935
B. 1947
C. 1951
D. 1960
Answer: A