Q1. What is a bank?

Ans. Bank is a financial institute where we deposit the money. The bank accepts this money for the purpose of lending and repays it on demand.

Q2. What is the major functions of any bank?

Ans. Major Functions of bank are:-

– Accepting deposits from public or firm.
– Lending money to public.
– Transferring money from one place to another.
– Credit creation.
– Act as trustee.
– Keep valuables in safe custody.

Q3. In how many types you may categorize the bank in India?

Ans. We can categorize the banks into five categories :

– Central bank (RBI)
– Public sector banks
– Private sector banks
– Co-operative sector banks
– Development bank or financial institution

Q4. What are scheduled commercial banks?

Ans. Scheduled commercial banks are those banks in India which were included in the second schedule of Reserve Bank of India (RBI) Act, 1934.

Q5. In which year national housing bank (NHB) started its operation?

Ans. NATIONAL HOUSING BANK (NHB) started its operations in 1988.

Q6. Under which act were the State Bank of India and its subsidiaries nationalised?

Ans. The State Bank of India and its subsidiaries where nationalized under SBI Act, 1955.

Q7. What is non-scheduled bank?

Ans. Non –scheduled bank in India means a banking company as defined in clause (C) of section 5 of the BANKING REGULATION Act, 1949.

Q8. What are Co-operative banks?

Ans. Co-operative banks are organised under the provision of co-operative credit society’s law of state. The major beneficiary of this bank is agricultural sector.

Q9. Which is the first bank that was incorporated at the initiative of World Bank and in which year?

Ans. The Industrial Credit and Investment Corporation of India Limited (ICICI) in the year 1955.

Q10. How may development banks are there in India and name them?

Ans. There are six development banks are there in India. They are:

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