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
Q101Scenario: A small business owner, Mr. X, applies for a business loan. The lender asks him to share his GST returns and Bank Statements via an Account Aggregator (AA). Mr. X consents. A month later, he decides he no longer wants the lender to access his daily transaction data. Under the AA framework, what is Mr. X's right?Q102In August 2024, the RBI Governor announced the launch of "ULI" to speed up the credit appraisal process. What does the acronym ULI stand for, and which pilot project did it evolve from?Q103According to the RBI’s "Fair Lending Practice" circular regarding Penal Charges (effective 2024 and valid in 2026), how must a Regulated Entity (RE) treat late payment penalties?Q104Under the RBI’s Digital Lending Guidelines regarding data collection by Digital Lending Apps (DLAs), which of the following mobile permissions is a DLA explicitly permitted to request from a borrower?Q105Consider the following statements regarding the Co-Lending Model (CLM) between Banks and Non-Banking Financial Companies (NBFCs):Q106Regarding the recognition of Self-Regulatory Organizations for the FinTech Sector (SRO-FT) by the RBI, which of the following statements is INCORRECT?Q107Consider the following statements regarding RuPay Credit Cards on UPI:Q108Identify the correct statement regarding the reporting of "Digital Lending" loans to Credit Information Companies (CICs).Q109Which of the following best defines the core objective of "Credit Appraisal" in a banking context, and which principle of lending is generally considered the most critical?Q110In the context of banking credit facilities, which of the following clearly distinguishes a "Fund-Based" limit from a "Non-Fund Based" limit?Q111Regarding the "Operating Cycle" in working capital assessment, which of the following statements is NOT correct?Q112Consider the following statements regarding the "Turnover Method" (Nayak Committee) and "Maximum Permissible Bank Finance" (Tandon Committee):Q113Identify the pair of "Charge Type" and "Asset Nature" that is INCORRECTLY matched:Q114Consider the following statements regarding Fixed vs. Floating Charges:Q115Scenario: A textile manufacturer needs to purchase a new automated loom (machinery) expected to last 10 years. They also need funds to buy cotton bales (raw material) for the upcoming season. Action: The bank manager suggests a Term Loan for the loom and a Cash Credit limit for the cotton. Why is this structural distinction necessary?Q116Scenario: A bank grants a loan against the security of a warehouse full of paddy. The bank puts its own lock and key on the warehouse and appoints a security guard. The key remains with the Bank Manager. Which legal mode of charge has been created?Q117In the context of Term Loan appraisal, what does the Debt Service Coverage Ratio (DSCR) primarily indicate, and what is generally considered the minimum acceptable benchmark for most banks?Q118Which type of Mortgage is created by the simple delivery of documents of title to immovable property with the intent to create security, and is valid only in notified towns?Q119When calculating the Current Ratio for working capital assessment, which of the following is strictly NOT classified as a Current Liability?Q120Regarding the calculation of Maximum Permissible Bank Finance (MPBF) under the Tandon Committee recommendations:
Method I: The bank lends 75% of the "Working Capital Gap" (Current Assets minus Current Liabilities).
Method II: The bank lends 75% of "Total Current Assets" minus Current Liabilities.
Method II is more liberal (gives a higher loan amount) than MethodQ121Identify the INCORRECT statement regarding "Assignment" as a mode of creating a charge:Q122Consider the following statements regarding liquidity ratios:Q123Scenario: A borrower has the following stock position: Total Stock Value: ₹100 Lakhs Sundry Creditors (unpaid stock): ₹20 Lakhs Bank Margin stipulated: 25% Calculate the Drawing Power (DP) available to the borrower.Q124Scenario: A company has a Term Loan from Bank A secured by a First Charge on Plant and Machinery. Later, the company takes a Working Capital loan from BankQ125Which of the following statements most accurately defines the primary objective and scope of the SARFAESI Act, 2002?Q126According 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?Q127Section 31 of the SARFAESI Act, 2002 explicitly excludes certain types of properties and transactions from the purview of the Act. Which of the following is NOT covered under the SARFAESI Act?Q128Identify the INCORRECT statement regarding the Central Registry of Securitisation Asset Reconstruction and Security Interest of India, known as CERSAI.Q129A borrower is aggrieved by the action of a bank taking possession of his commercial shop under Section 13(4) of the SARFAESI Act. He wishes to file an application against this action. Which forum must he approach and within what timeline?Q130Scenario: 'Apex Textiles Ltd' has defaulted on a loan of Rupees 50 Lakhs. The bank issued a Section 13(2) notice on January 1st. Apex Textiles did not reply. On March 5th, the bank took symbolic possession of the factory. Apex Textiles claims the action is illegal because the bank did not approach the DRT before taking possession. Based on the SARFAESI Act, is the borrower's claim valid?Q131Which of the following statements best describes the fundamental shift in the Indian insolvency regime introduced by the IBC, 2016, compared to the earlier SICA regime?Q132Section 29A of the IBC renders certain persons ineligible to be Resolution Applicants. Which of the following is NOT a ground for disqualification under Section 29A?Q133Identify the INCORRECT statement regarding the Liquidation Process as per the 2025 amended framework.Q134'TechNova Solutions', an MSME, is facing financial stress. The promoters want to resolve the debt but wish to retain management control to preserve business continuity. Which mechanism under IBC is most suitable for them?Q135Scenario: 'Skyline Buildtech' and 'Skyline Infra', two separate companies with the same promoters, are developing a township. Homebuyers have allotted units in both. In February 2026, homebuyers filed a single joint Section 7 petition against both companies. The companies challenged this, arguing they are separate legal entities. Based on the Supreme Court judgment in Satinder Singh Bhasin (Feb 2026), is the joint petition maintainable?Q136Identify the pair that correctly matches the Scheme with its eligible entry age and premium payment mode:Q137Consider the following statements:Q138Consider the following statements regarding the claim limits and benefits under various Financial Inclusion schemes as of 2026:Q139Scenario: 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?Q140Who is the regulatory authority responsible for the administration and supervision of the Atal Pension Yojana (APY)?Q141The "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?Q142Which of the following activities is NOT eligible for financing under the Pradhan Mantri Mudra Yojana (PMMY)?Q143Consider the following statements regarding the "Margin Money" requirements under the Stand-Up India Scheme:Q144To be eligible for the "Tarun Plus" loan category (loans between ₹10 Lakh and ₹20 Lakh) under MUDRA, a borrower must satisfy a specific condition. Which of the following is that condition?Q145Match the Loan Schemes in List I with their correct financial limits in List II.
List I (Scheme)Q146Consider the following statements:Q147Scenario: Mr. Sharma (General Category, Male) and Ms. Anjali (General Category, Female) both approach a bank branch to apply for a Stand-Up India loan of ₹25 Lakh to start a new textile business. Neither has any prior business experience. Who is eligible for the loan under this scheme?Q148Which of the following agencies acts as the single national-level "Nodal Agency" for the implementation of the Prime Minister’s Employment Generation Programme (PMEGP)?Q149As 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?Q150Scenario: 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?
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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