A) Accepting deposits from the public strictly for safekeeping, repayable only after a fixed tenure of 10 years restricts the true nature of banking, as deposits must be repayable on demand or otherwise, not strictly locked for a decade. C) Generating public funds to supervise and control currency policies on behalf of the Central Bank is the function of the Central Bank itself, not a standard banking company. D) Transacting business by providing voluntary social services to improve the standard of living for weaker sections describes the objective of social services or NGOs, not the statutory definition of a bank.

A) Restricts implies limiting or holding back savings, which would suppress rather than stimulate economic activity. B) Forfeits means surrendering funds as a penalty, which contradicts the concept of gathering savings for productive use. D) Depreciates means reducing the value of savings, which is contrary to a bank's role in making funds available for capital and revenue expenditure.

A) State Bank of India (SBI) is explicitly categorized in the text as a public sector bank. B) Punjab National Bank (PNB) is listed as a public sector bank. C) Indian Overseas Bank (IOB) is provided as an example of a public sector bank.

A) They are meant essentially for providing cheap credit to their members is a true statement defining their core purpose. B) They are an important source of rural credit and agricultural financing in India accurately describes their primary role in the economy. D) They are governed by the provisions of the State Cooperative Societies Act is a correct factual statement regarding their regulatory framework.

B) Cooperative Banks focus on providing cheap rural and agricultural credit to members, not heavy turnkey projects. C) Retail Commercial Banks accept general deposits and provide standard loans, lacking the specialized focus on export-import or turnkey project financing. D) Post Offices offer retail financial facilities and mail services, not specialized industrial project funding.

A) Cooperative Bank serves the specific agricultural and credit needs of its members, not the regulatory needs of the banking system. B) Specialised Bank focuses on niche areas like foreign trade, not macroeconomic regulation. D) Public Sector Bank is a type of commercial bank that is regulated by the Central Bank; it does not regulate other banks.

A) Global refers to international markets, which is not the stated policy shift for achieving domestic social objectives. B) Corporate refers to business entities, whereas the shift specifically addressed geographical expansion to underserved areas. D) Metropolitan is synonymous with urban, which is the orientation the policy was shifting away from, not towards.

A) Shift from Innovative practices to Traditional practices is factually backwards; the text states the shift is from traditional to innovative practices. B) Shift from Development objectives to Short term objectives is reversed; the shift was from short-term to development objectives. C) Shift from Rural orientation to Urban orientation is reversed; the shift was from urban to rural.

A) Current account deposits is a primary method through which banks accept public deposits. B) Savings account deposits is a standard method utilized by banks to encourage and accept savings. D) Fixed deposits is a formal method of accepting time deposits with higher interest.

A) Bearer and crossed cheques are withdrawal instruments under the cheque facility, not forms of bank advances. B) Bill payments and locker facilities are allied or agency services, not lending functions. C) Buying and selling of shares is an allied personal service, not a loan advance.

B) They impose strict restrictions on the number of times withdrawals can be made in a given period describes savings accounts, which have withdrawal limits. C) They yield the highest rate of interest compared to all other deposit accounts is incorrect; fixed deposits typically yield higher interest. D) They are time deposits where premature withdrawal results in a forfeiture of interest describes fixed accounts, not current accounts.

A) The overdraft limit pertains to a lending facility, which is completely unrelated to fixed deposit penalties. B) The principal amount is the original money deposited; banks penalize the interest, not the principal, upon early withdrawal. D) The locker facility deposit refers to allied services and has no connection to fixed account withdrawals.

A) Mail transfers are a service for the remittance of funds, not a form of lending. B) Bank drafts are instruments used for remitting funds from one place to another, not loan advances. D) Saving deposits refer to the acceptance of funds from the public, which is the opposite of lending funds.

A) Term loans are a standard form of advance/lending provided by banks. B) Cash credits are a legitimate mode of lending funds to businesses. C) Discounting trade bills is explicitly listed as a method of providing loans and advances.

A) Crossed cheques must be deposited into the payee's account and cannot be encashed immediately at the counter. C) Post-dated cheques are not mentioned in the text's primary classification of cheque facilities and cannot be encashed immediately if the date has not arrived. D) Bank drafts are a remittance tool issued by the bank on its own branches, not a customer's cheque for immediate counter encashment.

A) They are encashable immediately at bank counters by anyone holding them is the exact definition of a bearer cheque. B) They act as a high-interest time deposit describes a fixed deposit, not a withdrawal instrument. D) They are issued by the bank on its own branches to remit funds across cities is the definition of a bank draft.

A) Bearer cheque is a withdrawal instrument used locally to get cash at the counter, not an inter-branch transfer tool issued by the bank. B) Multiple Option Deposit is a hybrid savings scheme, not a remittance mechanism. C) Fixed Deposit Receipt is a document proving a time deposit investment, not a fund transfer tool.

A) Term loans fall under the "Lending of funds" function. B) Underwriting services fall under the "Allied services" or general utility functions. D) Acceptance of deposits is a primary banking function used to gather savings, not to transfer them to other places.

B) Acceptance of savings accounts is a core deposit function. C) Discounting trade bills is a core lending function. D) Providing overdrafts is a core lending function.

B) Real estate properties are not listed as assets that banks buy and sell on behalf of retail customers as a standard allied service. C) Agricultural products are traded in commodity markets, not typically bought and sold by banks for retail clients. D) Bank drafts and pay orders are instruments issued by the bank for fund remittance, not investment assets traded for customers.