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JAIIB IE&IFS Unit 21 — Indian Banking Structure: Free MCQs with Explanations

By Swarnakshi Jha (ex-banker) · Updated 20 September 2026 · Paper 1 of the November 2026 cycle (1 November 2026)

This page is a free slice of our JAIIB IE&IFS question bank for Unit 21 — Indian Banking Structure (Module C — Indian Financial Architecture). The Mock Centre holds 143 questions on this unit alone, every one with a why-right / why-wrong explanation; below are the facts examiners keep returning to, five of those questions to try, and the traps that cost marks.

IE&IFS · Module C143 MCQs in the Mock Centre5 free belowPaper on 1 November 2026

Key facts examiners test from this unit

  1. BR Act: Sec 5(1)(b) banking, 5(1)(c) banking company, Sec 6 activities, Sec 7 name; demand vs time deposits; fund-based (CC) vs non-fund (LC/BG).
  2. Lineage: Bank of Hindustan 1770 → Bank of Calcutta 1806 → Imperial 1921 → SBI 1-7-1955; Swadeshi banks (BoI/Canara 1906); cooperative movement 1889 (Kavthekar) + 1904 Act.
  3. RBI: Hilton Young, est. 1935, nationalised 1-1-1949; nationalisations 19-7-1969 (14, >₹50 cr) & Apr 1980 (6, >₹200 cr); Lead Bank Dec 1969; Acquisition Acts 1970/1980; DICGC Act 1961.

5 free practice questions — tap an option

Five basic questions from this unit. Answers lock on the first tap, exactly as in the exam, and a short explanation opens underneath. The Mock Centre adds the moderate and tough questions, why every other option is wrong, the concept capsule and the exam tip — with your score and revision dates tracked.

Question 1 of 5
Banking is classically defined in the:
Why (b): Banking is classically defined in the BANKING REGULATION ACT, 1949 — the sector's constitution.
Question 2 of 5
DEMAND deposits are those:
Why (b): DEMAND deposits are REPAYABLE ON DEMAND — current and savings money, withdrawable at will.
Question 3 of 5
Scheduled banks appear in the RBI Act's:
Why (b): Scheduled banks appear in the SECOND SCHEDULE of the RBI Act 1934 — which is where the name 'scheduled' comes from.
Question 4 of 5
LAB minimum start-up capital:
Why (a): LAB minimum start-up capital: ₹5,00,00,000 — five crore, the smallest bar in banking.
Question 5 of 5
A transaction at the CARD-ISSUING bank's own ATM:
Why (a): A transaction at the card-issuing bank's OWN ATM is ON-US — same bank both sides.
0 of 5 answered.

Traps in this unit

Confusable AConfusable BThe difference
Sec 5(1)(b)Sec 5(1)(c)'Banking' vs 'banking company'
Sec 42(6) RBI ActSec 11 BR ActScheduled vs non-scheduled capital
Practise all 143 questions on Unit 21. The free demo opens a slice of every subject with the same explanations; the IE&IFS Online-only pass unlocks all 3,032 IE&IFS questions, the full and module mocks, Smart Revision and the Readiness Score for one year (₹1,299). Not sure where you stand? Take the free 10-question test first.
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← Unit 20: Indian Financial System: An Overview · Unit 22: Banking Laws — RBI Act 1934 & BR Act 1949 → · All IE&IFS units · JAIIB 2026 guide

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Independent study aid — not affiliated with, endorsed by, or sponsored by the Indian Institute of Banking & Finance (IIBF). Exam pattern, dates, fees and passing criteria are set by IIBF — always confirm the current rules at iibf.org.in. Regulatory figures verified as of September 2026; verify from official sources before relying on them in practice.