Q.Which bank acts as India's central/apex bank and does not deal directly with the general public? (A) State Bank of India
(B) Reserve Bank of India
(C) A Regional Rural Bank
(D) A Co-operative Bank

The statement is False. The correct full form of NEFT is National Electronic Funds Transfer, not "National Electric Fund Transfer."

NEFT is one of the modern electronic banking services offered in India:

• NEFT = National Electronic Funds Transfer.
• It is an electronic, nation-wide payment system that allows an individual or firm to transfer funds from one bank account to another account maintained with any participating bank branch.
• Transfers are processed electronically, making the service convenient, safe and paperless.

Why the statement is false: the wording "National Electric Fund Transfer" is incorrect on two counts — the middle word is Electronic (not "Electric"), and it is Funds (not "Fund"). The correct expansion is National Electronic Funds Transfer.

The odd one is RBI, because it is the central (regulatory) bank of the country, while the other three are specialised development banks.

Banking services in India are provided by different types of banks, each with a distinct role:

• NABARD (National Bank for Agriculture and Rural Development) — apex institution for agricultural and rural credit.
• SIDBI (Small Industries Development Bank of India) — apex institution for financing small-scale and micro industries.
• EXIM Bank (Export-Import Bank of India) — finances and promotes India's foreign trade.

Each of these three is a specialised development bank created to serve a particular sector of the economy. The RBI (Reserve Bank of India) is different in nature — it is the central bank that issues currency, acts as banker to the government and to other banks, and regulates and supervises the whole banking and financial system. Because RBI is a controlling and regulatory authority rather than a sector-specific development bank, it is the odd one out.

The statement is False — a Current Account is opened by businessmen, not by salaried persons.

Banks offer different types of deposit accounts to suit different needs. A Current Account is a running account designed for businessmen, traders, firms and companies who carry out a large number of transactions every day. It allows unlimited deposits and withdrawals, provides overdraft facility, but normally pays no interest.

Salaried persons and small savers, on the other hand, usually open a Savings Account. It is meant to encourage the habit of saving, allows a limited number of withdrawals and pays a modest rate of interest on the balance.

Since the account suited to salaried persons is the savings account and not the current account, the given statement is false.

The odd one out is RBI.

The banking structure in India includes different types of banks meant for different purposes.

• NABARD (National Bank for Agriculture and Rural Development) finances agriculture and rural development.
• SIDBI (Small Industries Development Bank of India) supports small-scale and micro industries.
• EXIM Bank (Export-Import Bank of India) promotes and finances India's foreign trade.

All three are specialised development banks serving specific sectors. The RBI (Reserve Bank of India), on the other hand, is the central bank of the country. It issues currency, controls credit and money supply, and regulates and supervises all other banks. Because it is the apex controlling authority and not a sector-specific development bank, RBI is the odd one out.

The statement is False. Current accounts are meant for business persons and firms who transact frequently; salaried and ordinary individuals open savings accounts.

Banks offer different types of deposit accounts suited to different customers:

• Current Account — designed for businessmen, traders, companies and firms who deposit and withdraw money many times a day. It allows unlimited transactions and overdraft facility but usually pays no interest.
• Savings Account — designed for salaried persons, households and small savers to encourage saving. It pays a modest rate of interest and places some limits on withdrawals.

Because a salaried person needs a savings account (to save regularly and earn interest) rather than a current account, the statement that a current account is opened by salaried persons is false.

The odd one out is exchange bank. The other three belong to the co-operative banking system, while an exchange bank is a type of commercial bank.

Banks can be classified by their nature and function:

• Primary credit co-operative society — the base-level unit of the co-operative banking structure that provides credit to its members.
• State co-operative bank — the apex (top) body of co-operative banking in a state.
• District co-operative bank — the middle tier linking the state bank with the primary societies.
• Exchange bank — a commercial bank that mainly deals in foreign exchange and finances foreign trade; it is not part of the co-operative structure.

Since three of the options form the co-operative banking structure and the exchange bank does not, the exchange bank is the odd one out.

Overdraft facility is available for current account holders, not savings account holders.

An overdraft (OD) is a facility given by a bank that allows the account holder to withdraw money more than the balance available in the account, up to an agreed limit.

• This facility is provided mainly to businessmen and traders who have frequent and large transactions.

• Therefore it is available on a current account, which is meant for business use with unlimited transactions.

• A savings account is meant for the general public to encourage savings and does not offer an overdraft facility.