Banking Awareness for Bank Exams 2026: Quick Answer
Banking awareness is the part of the General/Financial Awareness section that tests how Indian banking works: the RBI and its policy rates, types of banks, banking laws, payment systems, NPAs and capital norms, priority sector lending, financial inclusion schemes, and recent banking news. It carries real weight: 60 questions in SBI PO Mains, 50 in IBPS PO Mains and SBI Clerk Mains, and 40 in IBPS Clerk and IBPS RRB Mains (2026 notifications), and banking questions usually make up a large share of each.
Key takeaway (verified October 2026): Repo 5.50% · SDF 5.25% · MSF/Bank Rate 5.75% · CRR 3% · SLR 18% · RBI Governor Sanjay Malhotra (26th, since 11 Dec 2024) · 12 public sector banks · 11 small finance banks · 5 payments banks · 28 RRBs · NPA after 90 days · DICGC cover ₹5 lakh · RBI capital rule 11.5% (CRAR 9% + CCB 2.5%) · PSL 40% of ANBC (SFBs 60%).
This page is the hub for our banking awareness notes. Each section gives the exam-ready facts and links to the detailed note.
Banking Awareness Weightage in Bank Exams 2026
| Exam (2026 notification) | GA / Financial Awareness test | Questions | Marks | Time |
|---|---|---|---|---|
| SBI PO Mains | General Awareness / Economy / Banking Knowledge | 60 | 60 | 45 min |
| IBPS PO Mains | General / Economy / Banking / Digital / Financial Awareness incl. RBI circulars | 50 | 60 | 35 min |
| SBI Clerk Mains | General / Financial Awareness | 50 | 50 | 35 min |
| IBPS Clerk Mains | General / Financial Awareness | 40 | 50 | 20 min |
| IBPS RRB PO and Clerk Mains | General Awareness | 40 | 40 | 15 min |
Prelims of these exams have no GA section; banking awareness matters from Mains onward and again in interviews. Full patterns: SBI PO, IBPS PO, SBI Clerk, IBPS Clerk, IBPS RRB PO.
RBI Policy Rates 2026 (Banking Awareness Must-Know Table)
| Rate | Value (October 2026) | Decided by | Notes |
|---|---|---|---|
| Repo rate | 5.50% | MPC | +25 bps on 7 Oct 2026 |
| Standing Deposit Facility (SDF) | 5.25% | Linked to repo | Floor of the corridor |
| Marginal Standing Facility (MSF) | 5.75% | Linked to repo | Ceiling of the corridor |
| Bank Rate | 5.75% | RBI | Aligned to MSF |
| Fixed reverse repo | 3.35% | RBI | No longer the operative floor |
| CRR | 3% of NDTL | RBI | Section 42, RBI Act; 99% daily minimum from 16 Oct 2026 |
| SLR | 18% of NDTL | RBI | Section 24, BR Act |
Details: RBI monetary policy October 2026 highlights, repo rate history, CRR and SLR rate 2026, monetary policy tools of RBI.
Reserve Bank of India: Basic Facts for Bank Exams
| Fact | Detail |
|---|---|
| Established | 1 April 1935, under the RBI Act, 1934 (on the Hilton Young Commission's recommendation) |
| Nationalised | 1 January 1949 |
| Headquarters | Mumbai (moved from Kolkata in 1937) |
| First Governor | Sir Osborne Smith; first Indian Governor: C D Deshmukh |
| Present Governor | Sanjay Malhotra (26th), since 11 December 2024 |
| Monetary Policy Committee | 6 members, Section 45ZB; inflation target 4% CPI (2–6% band) |
| Key roles | Monetary authority, issuer of currency (except ₹1 notes and coins, issued by the Government), banker to government, banker's bank, regulator of banks and payment systems, forex manager |
More: list of RBI Governors 1935 to 2026.
Types of Banks in India 2026
| Category | Number (Oct 2026) | Examples / notes |
|---|---|---|
| Public sector banks | 12 | SBI, PNB, Bank of Baroda, Canara, Union Bank, BoI, Indian Bank, Central Bank, IOB, UCO, Bank of Maharashtra, Punjab & Sind Bank |
| Private sector banks | 21 | HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank and others |
| Small finance banks | 11 | AU, Capital, Equitas, ESAF, Suryoday, Ujjivan, Utkarsh, slice, Jana, Shivalik, Unity |
| Payments banks | 5 | Airtel, India Post, Fino, Jio, NSDL (Paytm PB licence cancelled 24 Apr 2026) |
| Regional Rural Banks | 28 | One per State/UT after amalgamation; 50 : 35 : 15 (Centre : sponsor bank : state) |
| Foreign banks | Several dozen, branch or subsidiary mode | Citibank (retail sold to Axis), SBM Bank India (wholly owned subsidiary) |
| Cooperative banks | Urban and rural (StCBs, DCCBs) | Regulated by RBI and Registrar of Cooperative Societies |
Scheduled bank means a bank listed in the Second Schedule of the RBI Act, 1934. Detailed lists: small finance banks list 2026, payments banks list 2026, banks headquarters and taglines 2026.
The private bank count changes with licences and mergers; confirm it on RBI's latest list before an exam.
List of Public Sector Banks in India 2026 with Headquarters
| Bank | Headquarters | Tagline |
|---|---|---|
| State Bank of India | Mumbai | The Banker to Every Indian |
| Punjab National Bank | New Delhi | The Name You Can Bank Upon |
| Bank of Baroda | Vadodara | India's International Bank |
| Canara Bank | Bengaluru | Together We Can |
| Union Bank of India | Mumbai | Good People to Bank With |
| Bank of India | Mumbai | Relationship Beyond Banking |
| Indian Bank | Chennai | Your Own Bank |
| Central Bank of India | Mumbai | Central to You Since 1911 |
| Indian Overseas Bank | Chennai | Good People to Grow With |
| UCO Bank | Kolkata | Honours Your Trust |
| Bank of Maharashtra | Pune | (commonly asked: One Family, One Bank) |
| Punjab & Sind Bank | New Delhi | Where Service is a Way of Life |
Merger history in one line each: 2017: five SBI associates + Bharatiya Mahila Bank into SBI · 2019: Vijaya + Dena into Bank of Baroda · 2020: OBC + United into PNB, Syndicate into Canara, Andhra + Corporation into Union Bank, Allahabad into Indian Bank. See bank merger list 2026.
Nationalisation: 14 banks on 19 July 1969 and 6 more on 15 April 1980.
Important Banking Acts in India (Quick Table)
| Act | Year | Why it matters |
|---|---|---|
| Reserve Bank of India Act | 1934 | Created RBI; Section 42 (CRR), Second Schedule, MPC (Sec 45ZB) |
| Banking Regulation Act | 1949 | Licensing and regulation of banks; Section 24 (SLR) |
| SBI Act | 1955 | Imperial Bank became SBI on 1 July 1955 |
| DICGC Act | 1961 | Deposit insurance (now ₹5 lakh per depositor per bank) |
| Banking Companies (Acquisition) Acts | 1970, 1980 | Nationalisation of 14 and 6 banks |
| NABARD Act | 1981 | NABARD set up on 12 July 1982 |
| Negotiable Instruments Act | 1881 | Cheques; Section 138 (dishonour) |
| SARFAESI Act | 2002 | Recovery by enforcing security without courts |
| Payment and Settlement Systems Act | 2007 | RBI regulates payment systems |
| Insolvency and Bankruptcy Code | 2016 | Time-bound insolvency resolution |
| Banking Laws (Amendment) Act | 2025 | Up to four nominees from 1 Nov 2025 |
More: important banking acts in India, important committees related to banking.
Payment Systems in India: NEFT, RTGS, IMPS, UPI
| Feature | NEFT | RTGS | IMPS | UPI |
|---|---|---|---|---|
| Operated by | RBI | RBI | NPCI | NPCI |
| Settlement | 48 half-hourly batches | Real time, gross | Instant | Instant |
| Minimum | None | ₹2 lakh | None | None |
| Upper limit | None set by RBI | None | ₹5 lakh per transaction | ₹1 lakh generally (higher for specified categories) |
| 24x7 since | 16 Dec 2019 | 14 Dec 2020 | Always | Always |
Full comparison: NEFT RTGS IMPS UPI difference. Cheque rules (validity 3 months, Positive Pay from ₹50,000): types of cheques in banking.
NPA, Basel Norms and Priority Sector Lending (High-Scoring Static Topics)
NPA: a loan becomes non-performing when interest or principal is overdue more than 90 days. Substandard (up to 12 months as NPA) → Doubtful → Loss. Expected Credit Loss provisioning starts 1 April 2027, but the 90-day rule stays. See NPA classification and provisioning norms.
Basel norms: Basel I (1988, 8%, credit risk), Basel II (2004, three pillars), Basel III (2010, CET1 4.5%, CCB 2.5%, leverage ratio, LCR and NSFR). RBI requires CRAR 9%, CET1 5.5%, Tier 1 7%, CCB 2.5% (total 11.5%). See Basel norms 1, 2, 3 difference.
Priority sector lending: 40% of ANBC for domestic commercial banks; agriculture 18% (small and marginal farmers 10%), micro enterprises 7.5%, weaker sections 12%; SFBs 60% (cut from 75% in January 2026). See priority sector lending targets.
Financial Inclusion Schemes and Insurance (Banking Awareness)
| Scheme | Key fact |
|---|---|
| PM Jan Dhan Yojana (2014) | 59.09 crore accounts, ₹3,16,514 crore deposits (19 Aug 2026) |
| PMJJBY | ₹2 lakh life cover for ₹436 a year (age 18–50) |
| PMSBY | ₹2 lakh accident cover for ₹20 a year (age 18–70) |
| PM Mudra Yojana | Collateral-free loans up to ₹20 lakh |
| Insurance regulator | IRDAI, Hyderabad (chairperson Ajay Seth since 1 Sep 2025) |
More: financial inclusion schemes in India, insurance sector in India, banking terms A to Z.
How to Prepare Banking Awareness for Bank Exams (Step-by-Step)
- Learn the static base first (2 weeks): RBI facts, types of banks, acts, payment systems, NPA, Basel, PSL. These rarely change and give sure marks.
- Keep one "rates and numbers" sheet (the tables above) and update it after every MPC meeting.
- Read RBI press releases and PIB Finance weekly for 4–6 months before Mains; IBPS PO 2026 explicitly lists RBI circulars.
- Revise bank HQs, taglines and CEOs with the merger list so you never mark a merged bank (Dena, Vijaya, Andhra) as current.
- Solve 30–50 MCQs daily in the last month, under the real time limit (IBPS Clerk: 30 seconds a question).
Banking Awareness MCQs for Bank Exams 2026 (with Answers)
Q1. The current repo rate (October 2026) is: (a) 5.25% (b) 5.50% (c) 5.75% (d) 6.50% — Answer: (b)
Q2. CRR is maintained under which provision? (a) Section 24, BR Act (b) Section 42, RBI Act (c) Section 45ZB, RBI Act (d) Section 138, NI Act — Answer: (b)
Q3. SLR in October 2026 is: (a) 16% (b) 18% (c) 19.5% (d) 20% — Answer: (b)
Q4. Who is the 26th Governor of the RBI? (a) Shaktikanta Das (b) Urjit Patel (c) Sanjay Malhotra (d) Raghuram Rajan — Answer: (c)
Q5. How many public sector banks are there in India in 2026? (a) 10 (b) 12 (c) 14 (d) 19 — Answer: (b)
Q6. The headquarters of Indian Overseas Bank is in: (a) Mumbai (b) Kolkata (c) Chennai (d) Pune — Answer: (c)
Q7. A loan becomes an NPA when it is overdue for more than: (a) 30 days (b) 60 days (c) 90 days (d) 180 days — Answer: (c)
Q8. RBI's minimum CRAR for banks (excluding CCB) is: (a) 8% (b) 9% (c) 10.5% (d) 11.5% — Answer: (b) (11.5% including the 2.5% CCB)
Q9. The overall priority sector lending target for small finance banks from FY 2025-26 is: (a) 40% (b) 60% (c) 75% (d) 50% — Answer: (b)
Q10. Minimum amount for an RTGS transfer: (a) ₹50,000 (b) ₹1 lakh (c) ₹2 lakh (d) ₹5 lakh — Answer: (c)
Q11. NEFT became available 24x7 from: (a) 16 Dec 2019 (b) 14 Dec 2020 (c) 1 Jan 2019 (d) 1 Apr 2020 — Answer: (a)
Q12. DICGC insures bank deposits up to: (a) ₹1 lakh (b) ₹2 lakh (c) ₹5 lakh (d) ₹10 lakh per depositor per bank — Answer: (c)
Q13. In a Regional Rural Bank, the sponsor bank holds: (a) 15% (b) 35% (c) 50% (d) 26% — Answer: (b)
Q14. Fourteen banks were nationalised on: (a) 19 July 1969 (b) 15 April 1980 (c) 1 July 1955 (d) 1 January 1949 — Answer: (a)
Q15. Which payments bank had its licence cancelled by the RBI in April 2026? (a) Airtel Payments Bank (b) Fino Payments Bank (c) Paytm Payments Bank (d) NSDL Payments Bank — Answer: (c)
Banking Awareness FAQs
What is banking awareness in bank exams?
It is the banking part of the General/Financial Awareness test in bank Mains exams: RBI, policy rates, types of banks, banking laws, payment systems, NPAs, Basel norms, schemes and banking news.
How many questions come from banking awareness in IBPS PO?
The IBPS PO 2026 Mains GA test has 50 questions for 60 marks in 35 minutes, covering general, economy, banking, digital and financial awareness including RBI circulars. Banking-related questions form a large share.
Which topics are most important in banking awareness for 2026?
The October 2026 RBI policy (repo 5.50%), CRR/SLR and the new 99% daily CRR rule, bank mergers and the 12 PSBs, Paytm Payments Bank's licence cancellation, PSL targets, NPA/ECL norms and the latest PMJDY data.
Is banking awareness asked in prelims?
No. SBI PO, IBPS PO, SBI Clerk, IBPS Clerk and IBPS RRB prelims have no GA section. It is asked in Mains and interviews.
What is the best way to revise banking awareness quickly?
Use one table-based sheet of rates, banks and acts (like this page), update it after each RBI policy, and solve topic-wise mock tests every day.
Practice Next
- Mock tests: IBPS and SBI PO Banking Awareness Mock Test 02, IBPS and SBI Clerk Banking Awareness Mock Test 02, SBI PO Mains Banking Awareness Mock Test 03, IBPS PO Mains Banking Awareness Mock Test 04.
- RBI focus: IBPS and SBI PO RBI and Monetary Policy Mock Test 01.
- Clerk Mains: IBPS Clerk Mains General Awareness Mock Test 02, SBI Clerk Mains General Awareness Mock Test 01.
- Practice: banking awareness questions with answers and the note on types of bank accounts in India.
- Browse all study notes.