SBI CBO BANKING KNOWLEDGE – Top 200 Questions for SBI CBO 2026 EXAM: 30 Questions & Answers

1. Implementation Date: April 1, 2027. 2. Glide Path: Banks are allowed a transition period (up to 5 years, ending 2031) to absorb the capital impact of the initial jump in provisions. 3. Stages: Assets will be classified into Stage 1 (12-month ECL), Stage 2 (Significant risk increase), and Stage 3 (Impaired). Historical Context: This moves Indian banking to align with global IFRS 9 standards, replacing the traditional IRAC norms (90-day rule) which were criticized for being “too little, too late.”

Under the RBI Charter of Customer Rights and the Master Circulars, Zero Liability is granted in two specific cases: 1. Contributory Fraud or Negligence by the Bank: If the fraud occurs due to a lapse on the part of the bank (e.g., employee fraud or system compromise), the customer has zero liability regardless of when they report it. 2. Third-Party Breach: If the deficiency lies neither with the bank nor the customer (e.g., a malware attack or skimming), AND the customer notifies the bank within 3 working days of receiving the alert. Historical or Related Context: If the customer reports after 3 days but within 7 days, they face “Limited Liability.” If they report after 7 days, the liability is determined by the Board Approved Policy of the bank.

The 3 categories are: 1. SMA-0: Principal or interest overdue between 1 and 30 days. 2. SMA-1: Principal or interest overdue between 31 and 60 days. 3. SMA-2: Principal or interest overdue between 61 and 90 days

Condition 1 (Limit Breach): Outstanding Balance > Sanctioned Limit OR Drawing Power for 90 days. Condition 2 (No Velocity): Balance is within limit, but NO credits (deposits) for 90 days. Condition 3 (Interest Coverage): Balance is within limit and there are credits, but the sum of credits < sum of interest debited in the previous 90-day period

1. Premium: Revised from ₹330 to ₹436 per annum (effective since June 1, 2022). 2. Coverage Amount: ₹2 Lakh (₹2,00,000). 3. Eligibility: Individuals aged 18 to 50 years with a savings bank account. Historical Context: The premium was originally ₹330 but was hiked to ₹436 in 2022 due to a high claim ratio. This rate remains applicable for the 2025-26 cycle.

1. Primary User: This user controls the funding account and sets the spending limits. 2. Secondary User: This user can initiate payments using the Primary’s account. They can do this either independently under “Full Delegation” or with approval under “Partial Delegation.” 3. Capacity: A Primary User can authorize up to 5 Secondary Users. Historical Context: Launched broadly between late 2024 and early 2025, this feature targets financial inclusion for dependents, such as minors or the elderly, who may not have their own bank accounts. It effectively replaces the need for physical “Add-on Cards” in the digital UPI ecosystem.

1. Secured Portion: 15% provision. 2. Unsecured Portion: 25% provision

1. OD Limit: Enhanced from ₹5,000 to ₹10,000. 2. Unconditional OD: Up to ₹2,000 is available without strict conditions. 3. Age Limit: Revised from 18–60 years to 18–65 years. Historical Context: The enhancement in OD limit and age criteria was implemented in 2018 to sustain engagement in PMJDY accounts. The basic OD is available after satisfactory operation of the account for 6 months.

1. D1 (0-1 year in Doubtful): 25% provision. 2. D2 (1-3 years in Doubtful): 40% provision. 3. D3 (>3 years in Doubtful): 100% provision

Current Rate: 12 paise per 100 Rupees (Effective since April 1, 2022). Statutory Cap: The DICGC Act allows the corporation to raise the premium up to a maximum of 15 paise per 100 Rupees, but this requires RBI approval. Payment Cycle: Banks pay this premium in advance on a half-yearly basis.

1. Agriculture & SME: 0.25% (Lowest risk weight preference). 2. Commercial Real Estate (CRE): 1.00% (Highest risk). 3. CRE-Residential Housing (CRE-RH): 0.75%. 4. General (All others): 0.40%. Historical Context: These rates have been stable for several years. The differential rates are used by the RBI as a policy tool to encourage or discourage lending to specific sectors (e.g., higher provision for CRE discourages speculative real estate lending).

1. Function: It provides a standardized set of APIs to fetch land records, satellite data (for agricultural loans), and other financial data directly to lenders. 2. Evolution: It is the full-scale rollout of the pilot previously known as the Public Tech Platform for Frictionless Credit (PTPFC

1. Role of PFRDA: It administers the National Pension System (NPS) and APY. It appoints the Point of Presence (PoPs) and aggregators. 2. Architecture: The money collected is invested by Pension Funds appointed by PFRDA as per investment guidelines. 3. Claim Settlement: PFRDA ensures the “Guaranteed Pension” promise is kept by the government by managing the gap funding if necessary.