FCI Banking Awareness Important and Expected Questions 2026

FCI Banking Awareness Important and Expected Questions

Banking Awareness covers important concepts related to the Indian banking system, the Reserve Bank of India, financial institutions, monetary policy, digital banking, financial inclusion, and banking

terminology. Understanding these topics can help candidates prepare for competitive examinations that include banking-related general awareness.

FAQs 

1. What are the most important Banking Awareness topics for FCI?

Important topics include RBI, commercial banks, types of bank accounts, monetary policy, repo rate, reverse repo rate, CRR, SLR, NEFT, RTGS, IMPS, UPI, financial inclusion, NPA and priority sector

lending.

2. What is the Reserve Bank of India (RBI)?

The Reserve Bank of India is India's central bank. It regulates the banking system, manages monetary policy, issues currency notes (except the one-rupee note and coins), maintains financial stability and

manages foreign exchange reserves.

3. What is the difference between CRR and SLR?

Cash Reserve Ratio (CRR) is the percentage of a bank's Net Demand and Time Liabilities that must be maintained as cash balance with the RBI. Statutory Liquidity Ratio (SLR) is the portion that banks

must maintain in specified liquid assets, such as cash, gold and approved securities.

4. What is the Repo Rate?

The repo rate is the rate at which the RBI lends short-term funds to banks against eligible securities under the liquidity adjustment framework. It is an important monetary policy tool used to influence

liquidity and interest rates.

5. What is the difference between NEFT, RTGS and IMPS?

NEFT is an electronic fund transfer system that processes transactions in batches. RTGS settles transactions individually in real time and is generally used for high-value transfers. IMPS provides instant

interbank fund transfers and is available round the clock.

6. What is a Non-Performing Asset (NPA)?

A Non-Performing Asset is a loan or advance that stops generating income for a bank. Generally, a term loan becomes an NPA when interest or principal remains overdue for more than 90 days, subject to

applicable RBI norms.

7. What is Priority Sector Lending?

Priority Sector Lending requires banks to provide a specified portion of their lending to important sectors such as agriculture, micro and small enterprises, education, housing and weaker sections, as

prescribed by the RBI.

8. What is Financial Inclusion?

Financial inclusion means ensuring access to affordable and useful financial services for individuals and businesses. These services include savings accounts, credit, insurance, pensions and digital payment

facilities.

9. What is the difference between a Savings Account and a Current Account?

A savings account is primarily designed for individuals to save money and earn interest. A current account is generally used by businesses and traders for frequent transactions and usually does not offer

interest.

10. What is Monetary Policy?

Monetary policy refers to the measures taken by the RBI to regulate money supply, liquidity and interest rates in the economy. Its major objectives include maintaining price stability while supporting

economic growth.

11. What is the difference between a Debit Card and a Credit Card?

A debit card allows customers to make payments using money available in their bank account. A credit card allows customers to borrow money up to a prescribed credit limit and repay it according to the

billing terms.

12. What is the difference between a Commercial Bank and a Cooperative Bank?

Commercial banks primarily provide banking services to individuals, businesses and organisations with a profit-oriented approach. Cooperative banks operate on cooperative principles and mainly serve

their members and local communities.

13. What is the Deposit Insurance and Credit Guarantee Corporation (DICGC)?

DICGC is a wholly owned subsidiary of the RBI that provides deposit insurance to eligible bank depositors. The insurance cover is up to ₹5 lakh per depositor per bank, including principal and interest,

subject to applicable rules.