Bissoy.com
Doctors Medicines MCQs Q&A

Which was the first bank in India? A. Reserve Bank of India B. State Bank of India C. Central Bank of India D. Bank of Hindustan

Which was the first bank in India? A. Reserve Bank of India B. State Bank of India C. Central Bank of India D. Bank of Hindustan Correct Answer D

The correct answer is the Bank of Hindustan.

Key Points

  • Moving towards modern India, the first bank of India was the Bank of Hindustan. 
  • This bank was established in the year 1770 but the bank was liquidated after 50 years of operations.
  • Additionally, the second oldest bank in India was established in the year 1786 and the bank could only operate till 1791 before it collapsed. The name of this bank was Bank of India.
  • Later in 1806, the Bank of Calcutta was incepted and this bank was later renamed as Bank of Bengal. After many orders to rename this bank, the State Bank of India came into existence. 
  • State Bank is Bank of Calcutta and this final change in the name went through in 1955.
  • State Bank of India is also the largest public sector bank in India 
  • Now all the banks in India are governed by the Reserve Bank of India which is the central banking agency of India.
  • RBI was established in 1935 and it is one of the most powerful institutions in India.

Related Questions

Which among the following is NOT a correct statement?  1. The Reserve Bank of India worked as Central Bank of Burma till April 1947 2. The Reserve Bank of India worked as Central Bank of Pakistan till June 1948 3. The Reserve Bank of India worked as Central Bank of Bangladesh from January 1972 to December 1975 4. The Reserve Bank of India commenced its operations on April 1, 1935 
In the question below is given a statement followed by two courses of action numbered I and II. You have to assume everything in the statement to be true and on the basis of the information given in the statement, decide which of the suggested course of action logically follow(s) for pursuing. Statement: Reserve Bank of India has observed many discrepancies in the transactions of State Bank of India. Courses of Action: I: Reserve Bank should ask for the transaction details from other banks. II: Reserve Bank should hold the future transactions of State Bank of India till it explains the past discrepancies.
In a survey conducted among 120 houses, it was found that 50 read Times of India, 60 read Indian Express and 48 read Hindustan Times; 20 read Times of India and Indian Express, 18 read Times of India and Hindustan Times and 24 read Indian Express and Hindustan Times. If 10 read all three, how many read only one newspaper?
In the question below, are given a statement followed by three courses of actions numbered I, II and III. On the basis of the information given, you have to assume everything in the statement to be true, and then decide which of the following suggested courses of actions logically follow(s) for pursuing. Statement: In a bid to find a successor to founder CEO Rana Kapoor, The Yes Bank has formed a five member panel including two members from outside the bank, less than a week after Reserve Bank of India (RBI) cut short his tenure until January 31 2019. In a press release sent to the exchanges late on Tuesday evening, Yes Bank said that the “search and selection committee” would comprise of three members of the bank’s nomination and remuneration committee and also two external members, which the bank did not specify.  Courses of action: I. However, the board has requested the Reserve Bank of India (RBI) to grant an extension to Kapoor up to September 2019 ‘for finalization of audited financial statements for fiscal year ending March 2019 and in order for the statutory AGM process to be completed’. II. The board has also recommended the elevation of senior group presidents Rajat Monga and Pralay Mondal as executive directors ‘to ensure a long term succession plan within Yes Bank, and given the demonstrated track record of these two senior leaders’. All this will be subject to RBI approval.  III. The panel will comprise of five members and will focus on find a successor to Rana Kapoor.
Assertion (A) The Reserve Bank of India is entrusted with the management of the public debt and issue of new loans and treasury bills on behalf of the Central and State Governments.
Reason (R) The Governor and the Deputy Governors of Reserve Bank of India are appointed by the Central Government.
The central banking functions in India are performed by the I=Central Bank of India II=Reserve Bank of India III=State Bank of India IV=Punjab National Bank
The central banking functions in India are performed by the

  1. I=Central Bank of India
  2. II=Reserve Bank of India
  3. III=State Bank of India
  4. IV=Punjab National Bank
Identity the correct combination of statements with regard to banking in India:
1. The Presidency banks had acted as quasi - central banks for many decades in India.
2. The Bank of Hindustan was liquidated during 1829-32.
3. General Bank of India was an unsuccessful bank and was dissolved in 1791.
4. Bank of Calcutta was renamed as Bank of Bengal in 1921.
Identify the correct combination of statements with regard to banking in India.
1. For many years the presidency banks had acted as quasi-central banks.
2. The Bank of Hindustan was liquidated during 1829-32.
3. General Bank of India was an unsuccessful bank and was dissolved in 1791.
4. Bank of Calcutta was renamed as Bank of Bengal in 1921.
The question below consists of a set of labelled sentences. Out of the four options given, select the most logical order of the sentences to form a coherent paragraph. P: Banking in India originated in the last decade of the 18th century.  Q: The largest bank and the oldest still in existence is the State Bank of India. R: Among the first banks were the Bank of Hindustan, which was established in 1770 and liquidated in 1832 and the General Bank of India, established in 1786 but failed in 1791.  S: Today, our banking system is divided into commercial banks, regional rural banks and cooperative banks