Microtheme: Differentiated Banks —
8 questions asked in Prelims in the past.

1. [2026] Consider the following statements about the Non-Banking Financial Companies (NBFCs) in
   India:
   1. NBFCs cannot accept demand deposits.
   2. All the NBFCs operating in India have to be registered with the RBI.
   3. NBFCs form part of the payment and settlement system and can issue cheque drawn on
   itself.
   4. Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation
   (DICGC) is not available to the depositors of deposit taking NBFCs.
   Which of the statements given above is/are correct?
   • (a) 1 and 4
   • (b) 1, 2 and 3
   • (c) 4 only
   • (d) 2, 3 and 4
   Correct Answer: (A) 1 and 4
2. [2021] With reference to ‘Urban Cooperative banks’ in India, consider the following statements:
   1.They are supervised and regulated by local boards set up by the State Governments.
   2.They can issue equity shares and preference shares.
   3.They were brought under the purview of the Banking Regulation Act, 1949 through an Amendment in 1966.
   Which of the statements given above is/are correct?
   • (a) 1 only
   • (b) 2 and 3 only
   • (c) 1 and 3 only
   • (d) 1, 2, and 3
   Correct Answer: (B) 2 and 3 only
3. [2020] Consider the following statements:
   1. In terms of short-term credit delivery to the agriculture sector, District Central Cooperative Banks (DCCBs) deliver more credit in comparison to Scheduled Commercial Banks and Regional Rural Banks.
   2. One of the most important functions of DCCBs is to provide funds to the Primary Agricultural Credit Societies.
   Which of the statements given above is/are correct?
   • (a) 1 only
   • (b) 2 only
   • (c) Both 1 and 2
   • (d) Neither 1 nor 2
   Correct Answer: (B) 2 only
4. [2017] What is the purpose of setting up of Small Finance Banks (SFBs) in India?
   1. To supply credit to small business units
   2. To supply credit to small and marginal farmers
   3. To encourage young entrepreneurs to set up business particularly in rural areas.
   Select the correct answer using the code given below:
   • (a) 1 and 2 only
   • (b) 2 and 3 only
   • (c) 1 and 3 only
   • (d) 1, 2and 3
   Correct Answer: (A) 1 and 2 only
5. [2016] The establishment of ‘Payment Banks’ is being allowed in India to promote financial inclusion.
   Which of the following statements is/are correct in this context?
   1. Mobile telephone companies and supermarket chains that are owned and controlled by
   residents are eligible to be promoters of Payment Banks.
   2. Payment Banks can issue both credit cards and debit cards.
   3. Payment Banks cannot undertake lending activities.
   Select the correct answer using the code given below.
   • (a) 1 and 2 only
   • (b) 1 and 3 only
   • (c) 2 only
   • (d) 1, 2 and 3
   Correct Answer: (B) 1 and 3 only
6. [2013] Which of the following grants/grant direct credit assistance to rural households?
   (1). Regional Rural Banks
   (2). National Bank for Agriculture and Rural Development
   (3). Land Development Banks
   Select the correct answer using the codes given below.
   • (a) 1 and 2 only
   • (b) 2 only
   • (c) 1 and 3 only
   • (d) 1, 2 and 3
   Correct Answer: (C) 1 and 3 only
7. [2012] The basic aim of Lead Bank Scheme is that
   • (a) big banks should try to open offices in each district
   • (b) there should be stiff competition among the various nationalized banks
   • (c) individual banks should adopt particular districts for intensive development
   • (d) all the banks should make intensive efforts to mobilize deposits
   Correct Answer: (C) individual banks should adopt particular districts for intensive development
8. [2010] With reference to the Non-banking Financial Companies (NBFCs) in India, consider the following statements :
   1. They cannot engage in the acquisition of securities issued by the government.
   2. They cannot accept demand deposits like Savings Account.
   Which of the statements given above is/are correct ?
   • (a) 1 only
   • (b) 2 only
   • (c) Both 1 and 2
   • (d) Neither 1 nor 2
   Correct Answer: (B) 2 only