CSEET current affairs banking MCQs Part 3

Current Affairs Multiple Choice Questions on Indian Banking for CSEET with answers and brief In depths — based on recent updates

CSEET Current Affairs – Indian Banking

1. Which bank became the first in India to launch a Digital Rupee-based retail payment system (CBDC app)?

A) HDFC Bank

B) SBI

C) ICICI Bank

D) Yes Bank

Answer:  D) Yes Bank

In depth: Yes Bank was among the first to enable UPI interoperability for RBI’s Digital Rupee app in 2024.

2. The Reserve Bank of India (RBI) recently launched the “Utkarsh 3.0” strategic framework for the period:

A) 2023–2025

B) 2023–2026

C) 2024–2026

D) 2025–2027

Answer:  B) 2023–2026

In depth: Utkarsh 3.0 is RBI’s medium-term strategy to strengthen monetary policy, supervision, and digital innovation.

3. Which public sector bank completed 100 years of establishment in 2025?

A) Bank of Baroda

B) Canara Bank

C) Punjab National Bank

D) Central Bank of India

Answer:  A) Bank of Baroda

In depth: Founded in 1908, Bank of Baroda marked 100 years of operations in 2025 with several digital initiatives.

4. The current Governor of the Reserve Bank of India (as of October 2025) is:

A) Urjit Patel

B) Sanjay Malhotra

C) Raghuram Rajan

D) Viral Acharya

Answer:  B) Sanjay Malhotra

In depth: Sanjay Malhotra appointed  as the RBI Governor, appointed since December 2025.

5. RBI recently imposed restrictions on paytm Payments Bank for:

A) Non-compliance with KYC norms

B) Cybersecurity risks

C) Operational risk and supervisory concerns

D) Liquidity mismatch

Answer:  C) Operational risk and supervisory concerns

In depth: RBI barred Paytm Payments Bank from accepting deposits and new customers from March 2024.

6. Which small finance bank merged with AU Small Finance Bank in 2024?

A) Ujjivan SFB

B) Equitas SFB

C) Jana SFB

D) Fincare SFB

Answer:  D) Fincare SFB

In depth: RBI approved the merger of Fincare Small Finance Bank with AU Small Finance Bank, effective April 2024.

7. The Statutory Liquidity Ratio (SLR) refers to:

A) The minimum cash banks keep with RBI

B) The percentage of deposits in liquid assets like gold or government securities

C) The reserve for foreign exchange

D) None of the above

Answer:  B) The percentage of deposits in liquid assets like gold or government securities

In depth: SLR ensures banks maintain liquidity and solvency by investing a part of deposits in approved assets.

8. Which bank launched the “Project Kuber” for AI-driven fraud detection in 2024?

A) HDFC Bank

B) SBI

C) Axis Bank

D) ICICI Bank

Answer:  B) SBI

In depth: SBI launched Project Kuber, an AI-based system to enhance risk monitoring and fraud prevention.

9. The India Post Payments Bank (IPPB) is fully owned by:

A) Ministry of Communications

B) RBI

C) Department of Posts, Government of India

D) NITI Aayog

Answer:  C) Department of Posts, Government of India

In depth: IPPB is under the Department of Posts and focuses on financial inclusion through postal networks.

10. The Deposit Insurance and Credit Guarantee Corporation (DICGC) insures deposits up to:

A) ₹1 lakh

B) ₹2 lakh

C) ₹5 lakh

D) ₹10 lakh

Answer:  C) ₹5 lakh

In depth: Since 2020, DICGC provides insurance cover up to ₹5 lakh per depositor per bank.

11. The Pradhan Mantri Jan Dhan Yojana (PMJDY) was launched in which year?

A) 2012

B) 2014

C) 2016

D) 2018

Answer:  B) 2014

In depth: PMJDY was launched to promote financial inclusion and provide universal access to banking facilities.

12. Which of the following is a Development Finance Institution (DFI) created to fund infrastructure?

A) NABARD

B) SIDBI

C) NaBFID

D) EXIM Bank

Answer:  C) NaBFID

In depth: National Bank for Financing Infrastructure and Development (NaBFID) was established in 2021 to fund infrastructure projects.

13. The Prompt Corrective Action (PCA) framework of RBI is applied to:

A) Insurance companies

B) Non-banking financial companies

C) Scheduled commercial banks

D) Cooperative societies

Answer:  C) Scheduled commercial banks

In depth: PCA is a supervisory tool to maintain the soundness of banks when key financial parameters weaken.

14. In 2024, RBI launched the “PRAVAAH” portal to:

A) Enable small business loans

B) Facilitate regulatory approvals online

C) Support cross-border trade

D) Report non-performing assets

Answer:  B) Facilitate regulatory approvals online

In depth: PRAVAAH (Platform for Regulatory Application, Validation, and Authorization) streamlines approvals for regulated entities.

15. The largest public sector bank in India by total assets is:

A) Punjab National Bank

B) Union Bank of India

C) State Bank of India

D) Bank of Baroda

Answer:  C) State Bank of India

In depth: SBI remains India’s largest bank, contributing about 25% of total banking system assets.