Mastering SBI CBO BANKING KNOWLEDGE is crucial for clearing the SBI CBO 2026 EXAM. In this guide, we cover the 200 most important questions derived from recent financial developments. The next part of 200 more MCQs will be published later. This comprehensive mock test is specifically designed for SBI CBO 2026 EXAM candidates to help you master concepts like Digital Lending, IBC amendments, and revised KYC norms quickly.
About 200 MCQ test for SBI CBO BANKING KNOWLEDGE
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✅ General Practice
Q1The Reserve Bank of India issued a notification on January 17, 2026, introducing the new Integrated Ombudsman Scheme. According to this notification, on which date will the new RB-IOS, 2026 officially come into effect, replacing the 2021 framework?Q2The Pradhan Mantri Mudra Yojana (PMMY) classifies loans into specific categories based on the stage of growth of the beneficiary unit. Which of the following correctly identifies the loan limit for the newly introduced "Tarun Plus" category?Q3Under the RBI KYC Directions, the periodicity for "Periodic Updation" (Re-KYC) of customer identification data varies by risk category. Which of the following combinations is CORRECT?Q4As per the latest amendments to the Master Direction on KYC, identifying a customer as a "Money Mule" requires banks to check for specific "Red Flag Indicators." Which of the following is considered a high-risk indicator for a potential mule account?Q5According to the Reserve Bank of India's harmonization of Turn Around Time (TAT) framework, what is the mandatory timeline for a bank to pro-actively reverse a failed ATM transaction where the account is debited but cash is not dispensed?Q6As of February 2026, what are the maximum per-transaction limit and the maximum total balance limit allowed in a "UPI Lite" on-device wallet?Q7Scenario: Mr. Sharma is discharged from a hospital in Mumbai on February 10, 2026. His final bill is ₹4,20,000. He attempts to pay the full amount via a single UPI transaction to the hospital's verified merchant QR code. Based on current regulations, will this transaction succeed?Q8Under the "Simplified Procedure" for settling claims without a nomination, up to what amount can a Commercial Bank settle a claim without insisting on a Succession Certificate?Q9As per the revised MSME classification norms (effective from April 1, 2025), which of the following criteria correctly defines a "Micro Enterprise"?Q10As per the RBI (Co-Lending Arrangements) Directions, 2025 (effective January 1, 2026), what is the minimum percentage of the individual loan amount that the Originating Entity (NBFC) must retain on its books?Q11As of February 2026, banks are preparing for the transition from the "Incurred Loss" model to the "Expected Credit Loss" (ECL) framework. According to the RBI's roadmap, the ECL framework is proposed to be fully implemented for all commercial banks by:Q12Regarding the "Tarun Plus" loan category under the Pradhan Mantri Mudra Yojana (PMMY) as referenced in Budget 2026, identify the INCORRECT statement.Q13According to the RBI guidelines on Customer Liability in Unauthorized Electronic Banking Transactions (valid as of February 2026), in which of the following scenarios does a customer have "Zero Liability"?Q14Under the ambit of the Reserve Bank Integrated Ombudsman Scheme, 2026, what is the specific asset size threshold for Non-Banking Financial Companies, also known as NBFCs, to be covered?Q15As per the RBI directive on "Framework for Due Diligence and Risk Management of AePS Touchpoint Operators" (effective January 1, 2026), if an AePS Touchpoint Operator (ATO) remains inactive for a specific continuous period, the acquiring bank must perform a fresh KYC (Re-KYC) before reactivating them. What is this inactivity period?Q16Regarding the "One Agent – One Bank" model implemented to secure the Aadhaar Enabled Payment System (AePS), which of the following statements is INCORRECT?Q17As of February 2026, which of the following pairs of Bank Type and its corresponding Total PSL Target is INCORRECT?Q18If a bank fails to reverse a failed ATM transaction within the stipulated T plus 5 days, what is the mandatory compensation amount payable to the customer per day of delay?Q19When a Reporting Entity (RE) opens a new account for a customer, it must upload the KYC data to the Central KYC Records Registry (CKYCR). What is the strict timeline for this upload?Q20With reference to the Amendment Directions dated December 29, 2025, regarding the reliance on Central KYC Records Registry (CKYCR), consider the following statements:Q21As per the revised Three-Tier structure for Housing Loans (effective April 2025), what is the maximum loan limit for housing loans to individuals in Tier-2 Metropolitan centers (population 10 Lakh to 50 Lakh) to be eligible for PSL classification?Q22Consider the following statements regarding the Default Loss Guarantee (DLG) in Digital Lending:Q23Under the Special Mention Account (SMA) framework for early identification of stress, an account is classified as "SMA-1" when the principal or interest payment is overdue for which of the following periods?Q24Regarding the "Out of Order" status for Cash Credit (CC) or Overdraft (OD) facilities, consider the following conditions:Q25Under the KYC Directions, 2025, a "Beneficial Owner" (BO) is determined based on controlling ownership interest. What is the specific ownership threshold for determining the Beneficial Owner of a Company versus a Trust?Q26Regarding the enhanced compensation limits in the RB-IOS, 2026, consider the following statements:Q27The 2025 Directions have institutionalized the Video-Based Customer Identification Process (V-CIP). Which of the following conditions is MANDATORY for a valid V-CIP?Q28What is the current annual premium payable by a subscriber for the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) for the coverage period starting June 1, 2025?Q29According to the provisions of the SARFAESI Act, 2002, the measures of the Act do NOT apply if the outstanding amount of debt due to the secured creditor is less than which of the following thresholds?Q30As of February 2026, what are the minimum default thresholds required to initiate the Corporate Insolvency Resolution Process (CIRP) and the Pre-Packaged Insolvency Resolution Process (PPIRP), respectively?Q31Under the Priority Sector Lending norms applicable in 2026, loans to individuals for educational purposes, including vocational courses, are eligible for priority sector classification up to what limit?Q32Regarding the Priority Sector Lending limit for Renewable Energy projects, which of the following statements correctly describes the borrower limits as of February 2026?Q33Under the Reserve Bank of India's "Positive Pay System" (PPS) directives, banks are mandatorily required to enable this facility for all account holders issuing cheques for amounts of:Q34Effective January 3, 2026, the Reserve Bank of India implemented "Phase 2" of the Continuous Clearing System for cheques. What is the mandatory "Confirmation Window" for drawee banks under this specific phase?Q35The Reserve Bank of India (RBI), supported by Budget 2026, is rolling out the "Unified Lending Interface" (ULI). What is the primary function of the ULI platform?Q36Effective from October 1, 2022, a significant eligibility amendment was made to the Atal Pension Yojana (APY). Who among the following is specifically excluded from joining the scheme after this date?Q37Regarding the consequences faced by a borrower classified as a "Wilful Defaulter," which of the following statements is INCORRECT?Q38According to the RBI (Project Finance) Directions, 2025, a project loan for an Infrastructure project can retain its "Standard Asset" classification if the DCCO is deferred due to reasons beyond the promoter's control (exogenous reasons), provided the deferment does not exceed:Q39As per the Banking Laws (Amendment) Act, 2025, what is the maximum number of nominees a depositor can now appoint for a single deposit account?Q40As per the current PMEGP guidelines (valid in 2026), what are the maximum admissible project costs for setting up a new enterprise in the Manufacturing and Service sectors respectively?Q41Regarding the "Upgradation of Loan Accounts" classified as NPAs, consider the specific regulatory requirement clarified by the RBI: "An NPA account can be upgraded to Standard Asset category only if __." Which statement correctly fills the blank?Q42Scenario: The Reserve Bank of India imposes "All Inclusive Directions" on a stressed Co-operative Bank, restricting depositors from withdrawing funds. Under Section 18A of the DICGC Act, what is the timeline for DICGC to pay the insured amount to the depositors?Q43Which of the following terms best describes the "UPI Circle" feature introduced by the NPCI, and what is the primary operational relationship it establishes between users?Q44Consider the following assertion and reason regarding the "Deemed Approval" mechanism in CTS 2026.Q45In the context of "Settlement of Claims for Missing Persons," a bank can settle a claim before the statutory 7-year waiting period if the claimant produces which specific set of documents?Q46Scenario: An NBFC has a total digital loan portfolio of ₹100 Crore sourced through a specific Fintech partner. They have a Default Loss Guarantee (DLG) arrangement. If the actual defaults in this portfolio amount to ₹8 Crore, what is the maximum amount the Fintech partner can legally reimburse the NBFC under the current RBI guidelines?Q47Before an account becomes "Unclaimed" (at 10 years), it is first classified as "Inoperative" or "Dormant." According to RBI guidelines, what is the specific period of non-operation (no customer-induced transaction) after which a Savings or Current account is classified as Inoperative?Q48Consider the following statements regarding the "Margin Money" requirements under the Stand-Up India Scheme:Q49Consider the following statements regarding the PMEGP Subsidy Lock-in:Q50Consider the following statements regarding the "Turnover Method" (Nayak Committee) and "Maximum Permissible Bank Finance" (Tandon Committee):
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Frequently Asked Questions
What constitutes SBI CBO BANKING KNOWLEDGE?
It includes General Banking, RBI Circulars, Credit Management, Digital Banking, and Government Schemes relevant to the 2026 syllabus.
What is the Re-KYC period for High-Risk customers?
High-Risk customers must undergo Re-KYC once every 2 years.
What is the maximum subsidy under PMEGP for rural areas?
For Special Category beneficiaries in rural areas, the subsidy is 35% of the project cost.
Does the Ombudsman Scheme cover NBFCs?
Yes, NBFCs with assets of ₹100 Crore and above are covered under the RB-IOS 2026.
What is the new limit for Tarun Plus in Mudra Yojana?
The limit is above ₹10 Lakh up to ₹20 Lakh.
What is the compensation for delayed ATM reversal?
₹100 per day of delay beyond T+5 calendar days.
What is the FDI limit in the Insurance sector for 2026?
The FDI limit in the Insurance sector is 100%.
What is the purpose of the ULI platform?
The Unified Lending Interface (ULI) enables frictionless credit by streamlining data flow (land records, etc.) to lenders.
What is the lock-in period for PMEGP subsidy?
The subsidy is kept in a TDR with a lock-in period of 3 years.
Can a minor open an NPS account?
Yes, under the “NPS Vatsalya” scheme, minors can have an account managed by guardians.
What is the “Greenium” in Sovereign Green Bonds?
It is the lower yield (interest rate) the government pays because investors accept lower returns for green assets.
What is the provisioning for Sub-Standard Assets?
15% on the secured portion and 25% on the unsecured portion.
Who is the Nodal Agency for PMEGP?
Khadi and Village Industries Commission (KVIC) is the single national nodal agency.
What is the maximum imprisonment for cheque dishonour?
Up to 2 years under Section 138 of the NI Act.
Is the UDGAM portal for claiming deposits?
No, UDGAM is only for searching; claims must be filed directly with the respective bank.
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