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
Q151Consider the following statements regarding the "Own Contribution" (Beneficiary's Share) required under PMEGP:Q152Under the Deendayal Antyodaya Yojana - National Rural Livelihoods Mission (DAY-NRLM), what is the limit for collateral-free loans provided to Self Help Groups (SHGs) as per the latest RBI Master Circular (2025-26)?Q153The DAY-NRLM provides an Interest Subvention Scheme for Women SHGs. Which of the following statements correctly describes the effective interest rate for prompt payees in 2026?Q154Consider the following statements regarding the PMEGP Subsidy Lock-in:Q155Scenario: Mr. Raj wants to set up a manufacturing unit under PMEGP with a total project cost of ₹15 Lakh. He has completed his education only up to the 5th standard. Is he eligible for the loan under the PMEGP guidelines?Q156Consider the following statements regarding the Atal Pension Yojana (APY):Q157According to the Union Budget 2026-27, what is the revised Fiscal Deficit target set for the financial year 2026-27, expressed as a percentage of GDP?Q158The Union Budget 2026-27 announced the formation of a "High-Level Committee on Banking" (HLC-B). What is the specific mandate of this committee as stated in the budget speech?Q159To boost the "Municipal Bond" market, the Budget 2026-27 introduced a specific monetary incentive. Which of the following accurately describes this incentive?Q160The Budget 2026-27 proposed a significant change to the Foreign Exchange Management (Non-debt Instruments) Rules regarding "Persons Resident Outside India" (PROI). What is the new investment limit for an individual PROI in the equity capital of a listed Indian company?Q161To support the growth of "High-Potential" MSMEs, the Budget 2026-27 announced the creation of a dedicated "SME Growth Fund." What is the total corpus of this fund?Q162The Budget 2026-27 highlighted the success of the "Credit Assessment Model" (CAM) for Public Sector Banks (PSBs). This new model primarily relies on which type of data for sanctioning MSME loans?Q163To deepen the corporate bond market, the Budget 2026-27 proposed the introduction of a "Market Making Framework." This framework specifically allows access to funds and derivatives on which underlying asset?Q164Under the "Direct Listing Scheme" operationalized by the Ministry of Corporate Affairs (MCA), which category of Indian companies is currently eligible to list their equity shares exclusively on International Exchanges in GIFT City?Q165The Budget 2026-27 introduced the concept of "Corporate Mitras." Who are these "Corporate Mitras" and what is their primary function?Q166The Finance Minister proposed specific measures to leverage the TReDS platform in Budget 2026. Which of the following is NOT one of those announced measures?Q167A major structural reform in the Union Budget 2026-27 was the increase in the Foreign Direct Investment (FDI) limit for the Insurance Sector. What is the new FDI cap?Q168To support the agricultural sector, the Union Budget 2026-27 announced an enhancement in the limit for "collateral-free" loans under the Kisan Credit Card (KCC) scheme (Modified Interest Subvention Scheme). What is the new limit?Q169Scenario: "FinBank Ltd" holds a large portfolio of invoices (receivables) from Power Sector CPSEs on its TReDS platform. To free up capital, it wants to sell these receivables to a Mutual Fund. Under the Budget 2026 reforms, what specific mechanism enables this transaction?Q170Which of the following statements regarding the "Pradhan Mantri Awas Yojana - Urban 2.0" (PMAY-U 2.0) Interest Subsidy Scheme (ISS) are Correct?Q171Under the "PM Surya Ghar: Muft Bijli Yojana" (Rooftop Solar Scheme), the government provides subsidies based on system capacity. Which of the following subsidy slabs is INCORRECT?Q172Regarding the "NPS Vatsalya" scheme introduced to promote financial inclusion for minors, identify the INCORRECT statement.Q173To secure the supply chain for EV batteries, the Budget 2026-27 announced specific incentives under the "Critical Mineral Mission." Which of the following is a key component of this mission?Q174Scenario: Mr. Sharma, an urban resident with an annual household income of ₹5 Lakh, wishes to buy his first pucca house. He applies for a loan under PMAY-Urban 2.0. Which category does he fall under, and what is his primary eligibility criterion regarding house ownership?Q175Consider the following Assertion and Reason regarding Electronic Cheques.Q176Which of the following is an example of a "General Crossing"?Q177Mr. A endorses a cheque to Mr. B by adding the words "Sans Recourse" to his signature. The cheque is subsequently dishonoured. What is the legal liability of Mr. A in this scenario?Q178Regarding the territorial jurisdiction for filing a complaint under Section 138 (Dishonour of Cheque), consider the following statements based on Section 142 and recent judgments:Q179Consider the following regarding the liability of a "Drawee in Case of Need".Q180Which of the following specific endorsements converts a "Bearer" instrument into an "Order" instrument?Q181Scenario: A company issues a cheque signed by its Director, Mr. Sharma. The cheque is dishonoured due to "Insufficient Funds." The complainant files a case under Section 138 against Mr. Sharma (Director) without making the Company an accused in the complaint. Based on the binding Supreme Court precedent (Aneeta Hada case), is the complaint maintainable against Mr. Sharma?Q182What is the legal effect of adding the words "Not Negotiable" to a crossing on a cheque under Section 130 of the NI Act?Q183Under Section 85(1), a Paying Banker is discharged from liability if he pays an "Order Cheque" in due course, even if:Q184Scenario: A cheque is drawn by Mr. X in favor of Mr. Y. A thief steals the cheque, forges Mr. Y's endorsement, and transfers it to Mr. Z, who takes it for value and in good faith. Mr. Z presents it to the bank. Who is the "Holder in Due Course" in this scenario?Q185Consider the following statements regarding Section 89 of the NI Act (Payment of instrument on which alteration is not apparent):Q186Scenario: A branch manager opens a current account for a new customer, Mr. Fraud, accepting only a generic electricity bill as proof of address, without obtaining an officially valid document (OVD) or verifying the identity as per RBI KYC norms. Two days later, Mr. Fraud deposits a stolen crossed cheque of 50 Lakh Rupees into this account. The bank collects the proceeds. It is later found that Mr. Fraud was an imposter. Is the collecting banker protected under Section 131?Q187Which of the following statements regarding the "Premature Termination of Term Deposits" in the event of the depositor's death is INCORRECT?Q188Consider the following:Q189Scenario: A customer dies leaving a Savings Account balance of Rupees 4 Lakh. There is no nomination. The deceased has three children. Child A approaches the bank with a "Simple Indemnity Bond" and a "Letter of Disclaimer" from Child B and ChildQ190According 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?Q191For an account to remain "Active," there must be a "Customer Induced Transaction." Which of the following is considered a valid Customer Induced Transaction under RBI guidelines?Q192According to the Revised Instructions on Inoperative Accounts (effective from 2024), which channels are banks permitted to use for the Re-activation of inoperative accounts to ensure customer convenience?Q193Which of the following statements regarding the interest payable on Unclaimed Deposits transferred to the DEA Fund is INCORRECT?Q194Consider the following:Q195Scenario: A student opened a "Zero Balance" Savings Account for receiving a Government Scholarship in 2023. The scholarship stopped in 2024. The student has not done any transaction since then. It is now 2026 (more than 2 years). The Bank Manager classifies this account as "Inoperative" and stops debiting transactions. Is the Manager's action consistent with RBI guidelines?Q196Which of the following statements is TRUE regarding the fees or costs involved in filing a complaint under the Reserve Bank Integrated Ombudsman Scheme?
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Page 4 of 4 (196 Total Questions)
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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