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
Q51Regarding the consequences faced by a borrower classified as a "Wilful Defaulter," which of the following statements is INCORRECT?Q52Scenario: Ms. Rina, a shopkeeper aged 58, wishes to enroll in a social security scheme. She has a functional savings bank account but no prior insurance. She approaches you to join PMJJBY and PMSBY. Based on the eligibility rules (as of 2026), what is the correct course of action?Q53When an account is classified as a "Sub-standard Asset," what is the general provisioning requirement on the secured portion of the outstanding balance?Q54Regarding "Pipeline Flows" (credits or cheques received in the name of a deceased depositor after their death), which of the following approaches are authorized by the RBI?Q55According 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:Q56Under the RBI's Limited Liability framework for unauthorized electronic transactions reported between 4 to 7 working days, the maximum liability of the customer is capped based on the account type. Which of the following pairs is INCORRECTLY matched?Q57As per the current guidelines of the Pradhan Mantri Jan Dhan Yojana (PMJDY), what is the maximum limit for the Overdraft (OD) facility available to eligible account holders, and what is the upper age limit to avail this facility?Q58Regarding the UDGAM (Unclaimed Deposits – Gateway to Access inforMation) Portal, which of the following actions can a user NOT perform on the portal?Q59Which of the following statements regarding "Sovereign Green Bonds" (SGrBs) and the "Greenium" concept are Correct?Q60Regarding the "Key Fact Statement" (KFS) under the RBI Digital Lending Guidelines, which of the following pairs of components and their treatment is INCORRECTLY matched?Q61With reference to the IBC (Amendment) Bill, 2025 regarding the admission of insolvency applications, consider the following statements:Q62Regarding the provisioning norms for "Doubtful Assets," consider the following matching of Doubtful Categories (based on age) with their required provision percentages on the secured portion:Q63The "Stand-Up India" scheme mandates that loans must be provided for setting up a "Greenfield Enterprise." In the context of this scheme, what does the term "Greenfield Enterprise" strictly imply?Q64Scenario: Ms. Geeta, an aspiring entrepreneur from a Rural area belonging to the SC category, applies for a PMEGP loan to start a pottery unit. The total project cost is ₹10 Lakh. What is the Rate of Subsidy (Margin Money) she is eligible to receive from the government?Q65Scenario: Mr. Raj, an APY subscriber, fails to maintain the required balance in his savings account for the monthly contribution auto-debit. The contribution for April 2026 remains unpaid. What is the consequence of this default?Q66What is the insurance premium rate paid to DICGC as of the financial year 2025-26, and who bears the burden of this cost?Q67Consider the following account holding patterns to determine insurance coverage limits:Q68[Updated Feb 2026] Consider the following statements regarding the "Continuous Clearing" of cheques under CTS:Q69Which of the following best describes the primary operational difference between the legacy Electronic Clearing Service (ECS) and the modern National Automated Clearing House (NACH)?Q70Which of the following correctly distinguishes between "Vishing" and "Smishing" as modes of social engineering attacks in banking?Q71Consider the following statements regarding the Co-Lending Model (CLM) between Banks and Non-Banking Financial Companies (NBFCs):Q72As per the revised guidelines (effective 2025), loans to Start-ups (as defined by Ministry of Commerce and Industry) are eligible for Priority Sector Lending classification up to what limit?Q73According to the Income Recognition norms for Non-Performing Assets (NPAs), which of the following statements is NOT correct?Q74According to the RBI norms for Standard Asset Provisioning, what is the required provision percentage for the "General" category of advances (i.e., loans not falling under Agriculture, SME, or Commercial Real Estate)?Q75With reference to the procedure under Section 13 of the SARFAESI Act, consider the following statements:Q76Consider the following statements:Q77According to Section 138 of the Negotiable Instruments Act, 1881, what is the maximum term of imprisonment prescribed for the offence of dishonour of a cheque?Q78As per Section 6 of the Negotiable Instruments Act, 1881, which of the following is the defining characteristic that distinguishes a "Cheque" from a standard Bill of Exchange?Q79Section 10 of the NI Act defines "Payment in Due Course." Which of the following conditions is NOT required to claim protection under this section?Q80A "Material Alteration" renders a negotiable instrument void under Section 87. Which of the following changes is NOT considered a Material Alteration?Q81Section 131 of the Negotiable Instruments Act provides statutory protection to a "Collecting Banker." Which of the following is the primary condition that must be satisfied for a banker to claim this protection?Q82Under Section 85(1), a Paying Banker is discharged from liability if he pays an "Order Cheque" in due course, even if:Q83Under the updated RBI Guidelines for "Settlement of Death Claims," once the bank receives all the necessary documents from the claimant (nominee or legal heir), within what time period is the bank mandatorily required to settle the claim?Q84According to the RBI Master Direction on Customer Service, what is the minimum threshold limit up to which banks are advised to settle claims in respect of deceased depositors without insisting on legal representation (like a Succession Certificate) in the absence of a nominee?Q85In 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?Q86Before 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?Q87According to Section 26 of the Banking Regulation Act, 1949, a deposit account is legally classified as "Unclaimed" and the funds must be transferred to the Depositor Education and Awareness (DEA) Fund if the account has not been operated for a period of how many years?Q88Regarding the UDGAM (Unclaimed Deposits – Gateway to Access inforMation) Portal, which of the following actions can a user NOT perform on the portal?Q89Regarding the specific nomination rules for Safe Deposit Lockers and Articles in Safe Custody, which of the following is ALLOWED under the 2025 framework?Q90As per the Banking Laws (Amendment) Act, 2025, what is the maximum number of nominees a depositor can now appoint for a single deposit account?Q91In the context of the "Cyber Swachhta Kendra" (Botnet Cleaning and Malware Analysis Centre), which of the following descriptions is INCORRECT?Q92In the context of Video-based Customer Identification Process (V-CIP) for KYC, which of the following technological checks is MANDATORY to ensure the customer is physically present and not using a recording?Q93Consider the following statements regarding the "Shared Responsibility Model" in Cloud Computing for banks.Q94Which 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?Q95Consider the following statements regarding the "Wholesale CBDC" (e₹-W) pilots conducted by the RBI as of 2026:Q96Regarding the "Offline Functionality" of the Retail CBDC (e₹-R) introduced in the 2024-2025 pilots, which of the following statements is INCORRECT?Q97The Account Aggregator (AA) framework is designed around the principle of being "Data Blind." What does this specifically mean for the AA entity (NBFC-AA)?Q98In the context of the "Programmability" pilot for Retail CBDC (e₹-R) launched in 2024-2025, which of the following use cases was successfully tested in states like Gujarat and Andhra Pradesh?Q99The Account Aggregator (AA) ecosystem connects Financial Information Providers (FIPs) with Financial Information Users (FIUs). As of February 2026, which of the following entities is NOT typically considered a valid FIP in the ecosystem?Q100Consider the following statements distinguishing CBDC from UPI:
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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