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IBPS PO New Banking Schemes

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This page covers IBPS PO New Banking Schemes with complete concept notes, 23 graded practice MCQs, key points and exam-specific tips. Free to study.

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Concept Notes

New Banking Schemes— Rules & Concept

1.Core Concept

Read this first — the foundation of the topic

CORE CONCEPT — What Are New Banking Schemes? New Banking Schemes are financial programs launched by the Government of India or the Reserve Bank of India (RBI) to improve banking access, financial inclusion, credit flow, and economic development. These schemes are regularly announced in Union Budgets, RBI policy meetings, or through government notifications. For IBPS PO, questions focus on scheme names, launching authority, target beneficiaries, and key features.

KEY RULES/PROPERTIES 1. Every major scheme has a launching authority — either RBI, Government of India, NABARD, SIDBI, or a specific ministry.

2. Schemes target specific groups — farmers, women, MSMEs, youth, or urban poor. 3. Each scheme has a unique feature — interest subvention, credit guarantee, collateral-free loans, or direct benefit transfer.

4. Exam questions often ask: Who launched it? When? What is the benefit? Who is eligible?

2.Formula Block

Memorise — at least one formula appears in every paper

(Key Scheme Details to Remember)

PM SVANidhi — Rs. 10,000 / Rs. 20,000 / Rs. 50,000 (loan limit, in 3 stages) — Target: Street Vendors

PM Mudra Yojana — Shishu: up to Rs. 50,000 | Kishore: Rs. 50,001 to Rs. 5 lakh | Tarun: Rs. 5 lakh to Rs. 10 lakh

PM Jan Dhan Yojana — Overdraft facility: Rs. 10,000 | Launched: 28 August 2014

Stand Up India — Loan range: Rs. 10 lakh to Rs. 1 crore — Target: SC/ST and Women entrepreneurs

Kisan Credit Card (KCC) — Credit limit based on crop cycle — covers farming and allied activities

3.Exam Patterns

What examiners ask — read before attempting PYQs

IBPS PO regularly asks: - Name the scheme launched for a specific group (e.g., street vendors, women entrepreneurs) - Identify loan limits under Mudra Yojana categories - Match the scheme with its launching year or ministry - Questions about digital banking schemes like UPI-linked programs or account opening drives SHORTCUT/TRICK Trick 1 — MUDRA Memory Rule: Use 'SKT' — Shishu (Small), Kishore (Kids grow), Tarun (Teen/Big). Loan size grows in this order. Always remember Shishu = smallest loan. Trick 2 — For Stand Up India vs Start Up India: Stand Up = Banks give loans to SC/ST + Women. Start Up = DPIIT registers businesses. 'Stand Up' = physical support (money), 'Start Up' = recognition support.

4.Worked Example

Solve this step-by-step before moving on

Question: Ramesh is an SC entrepreneur who wants a loan of Rs. 40 lakh to start a business. Which government scheme applies, and from which institution can he get the loan? Step 1 — Identify the beneficiary: Ramesh is SC (Scheduled Caste). This is a key filter. Step 2 — Match with scheme: Stand Up India Scheme targets SC/ST and Women entrepreneurs. Step 3 — Check loan range: Stand Up India provides loans from Rs. 10 lakh to Rs. 1 crore.

Rs. 40 lakh fits within this range. Step 4 — Identify institution: Stand Up India loans are provided through Scheduled Commercial Banks. Answer: Stand Up India Scheme — from a Scheduled Commercial Bank.

5.Exam Traps

Common mistakes students make — avoid these

Students confuse PM Mudra Yojana (for small businesses, up to Rs. 10 lakh) with Stand Up India (for SC/ST/Women, Rs. 10 lakh to Rs. 1 crore). Remember: Mudra is for micro units with smaller loans. Stand Up India is for greenfield enterprises with larger loans.

Also, do not confuse SVANidhi (street vendors) with Mudra (micro businesses).

Key Points to Remember

  • PM Jan Dhan Yojana was launched on 28 August 2014 — India's biggest financial inclusion scheme with zero-balance accounts.
  • PM Mudra Yojana has 3 categories — Shishu (up to Rs. 50,000), Kishore (up to Rs. 5 lakh), Tarun (up to Rs. 10 lakh).
  • Stand Up India targets SC/ST and Women entrepreneurs — loan range is Rs. 10 lakh to Rs. 1 crore via Scheduled Commercial Banks.
  • PM SVANidhi Scheme provides collateral-free working capital loans to street vendors — starting at Rs. 10,000.
  • Kisan Credit Card (KCC) covers crop loans, post-harvest expenses, and allied agricultural activities under a single revolving credit.
  • PMJDY accounts include a Rs. 10,000 overdraft facility and Rs. 2 lakh accident insurance cover under RuPay card.
  • Start Up India (launched 16 January 2016) is managed by DPIIT — focuses on registration, tax benefits, and funding support for startups.
  • NABARD is the apex institution for agricultural and rural development finance — it refinances banks lending to rural sectors.

Exam-Specific Tips

  • PM Jan Dhan Yojana was launched on 28 August 2014 by Prime Minister Narendra Modi.
  • Under PM Mudra Yojana, the maximum loan under the 'Tarun' category is Rs. 10 lakh.
  • Stand Up India Scheme was launched on 5 April 2016 — minimum one SC/ST and one woman borrower per bank branch.
  • PM SVANidhi Scheme was launched on 1 June 2020 to provide loans to street vendors affected by COVID-19.
  • The overdraft facility under PMJDY was enhanced from Rs. 5,000 to Rs. 10,000 in the 2018 revamp.
  • Start Up India was launched on 16 January 2016 and is administered by the Department for Promotion of Industry and Internal Trade (DPIIT).
  • Kisan Credit Card scheme was introduced in 1998-99 based on the recommendations of the R.V. Gupta Committee.
  • Under PM SVANidhi, a street vendor who repays on time can get an enhanced loan of Rs. 20,000 in the second cycle and Rs. 50,000 in the third cycle.
Practice MCQs

New Banking Schemes — Practice Questions

23graded MCQs · easy to hard · full solution & trap analysis · showing 20 of 23

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Practice 1medium

Under the Pradhan Mantri Jan Dhan Yojana (PMJDY), what is the primary objective of the scheme in terms of financial inclusion?

Practice 2medium

The RBI introduced the 'Regulatory Sandbox' framework to facilitate innovation in the financial services sector. Which of the following best describes the purpose of this framework?

Practice 3medium

Under the RBI's 'Payments System Vision 2021-2025', what is the primary focus area for digital payment infrastructure development?

Practice 4medium

The RBI's 'Account Aggregator Framework' enables which of the following in the financial services ecosystem?

Practice 5medium

Under the Pradhan Mantri Jan Dhan Yojana (PMJDY), what is the maximum limit of overdraft facility available to eligible account holders?

Practice 6medium

The Reserve Bank of India introduced the 'Revised Framework for Resolution of Stressed Assets' in June 2019. Which of the following is NOT a key feature of this framework?

Practice 7medium

Under the 'Kisan Credit Card (KCC)' scheme, which of the following is the primary objective of the scheme as per RBI guidelines?

Practice 8medium

The 'Pradhan Mantri Fasal Bima Yojana (PMFBY)' is a crop insurance scheme. Which ministry is primarily responsible for implementing this scheme?

Practice 9medium

The Reserve Bank of India launched the 'Pradhan Mantri Mudra Yojana (PMMY)' to provide collateral-free loans to micro and small enterprises. Under this scheme, loans are provided through which of the following categories?

Practice 10medium

The Prime Minister's Micro Credit Scheme, launched to provide collateral-free loans to micro and small enterprises, is operationalized through which of the following mechanisms?

Practice 11medium

Under the Pradhan Mantri Jan Dhan Yojana (PMJDY), which of the following is NOT a mandatory feature of the basic savings account opened under the scheme?

Practice 12hard

Under the RBI's 'Pradhan Mantri Mudra Yojana (PMMY)', which category of loans is specifically designed for non-collateral lending to micro-entrepreneurs with a maximum loan amount of ₹10 lakh?

Practice 13hard

The RBI introduced the 'Regulatory Sandbox' framework to enable fintech innovation in banking. Under this framework, which of the following is a CORRECT statement regarding the duration and scope of sandbox testing?

Practice 14hard

Under the RBI's 'Revised Framework for Micro Finance Institutions (MFIs)' issued in 2023, what is the maximum loan amount that a Micro Finance Institution can disburse to a single borrower without triggering enhanced regulatory scrutiny?

Practice 15hard

The Reserve Bank of India launched the 'Unified Payments Interface (UPI) 2.0' framework to enhance digital payment infrastructure. Which of the following is NOT a feature introduced or emphasized under UPI 2.0 guidelines?

Practice 16hard

The RBI's 'Revised Prompt Corrective Action (PCA) Framework' (2023) modified the trigger points for regulatory intervention in banks. Which of the following is the CORRECT Capital Adequacy Ratio (CAR) threshold that triggers PCA Stage 1 under the revised framework?

Practice 17hard

Under the RBI's 'Account Aggregator (AA) Framework' (operationalized in 2021), which of the following is NOT a permitted use case for data sharing between financial institutions?

Practice 18hard

The Reserve Bank of India launched the 'Unified Payments Interface (UPI) 2.0' framework to enhance digital payments. Which of the following is NOT a feature introduced or emphasized under UPI 2.0?

Practice 19hard

Under the RBI's 'Pradhan Mantri Mudra Yojana (PMMY)' framework, which category of loan is specifically designed for non-collateral lending to micro-entrepreneurs, with a maximum loan amount of ₹10 lakh?

Practice 20hard

The RBI introduced the 'Regulatory Sandbox' framework to enable fintech innovation under controlled conditions. Which of the following statements about the Regulatory Sandbox is INCORRECT?

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60-Second Revision — New Banking Schemes

  • Remember: MUDRA = Shishu (up to Rs. 50,000) → Kishore (up to Rs. 5 lakh) → Tarun (up to Rs. 10 lakh) — loans for micro/small businesses.
  • Remember: Stand Up India = SC/ST + Women + Rs. 10 lakh to Rs. 1 crore + Scheduled Commercial Banks + Greenfield enterprises.
  • Remember: PMJDY launched 28 August 2014 — zero balance account + Rs. 10,000 overdraft + Rs. 2 lakh RuPay accident cover.
  • Trap: Do NOT confuse SVANidhi (street vendors, starts at Rs. 10,000) with Mudra (micro business owners, starts at Rs. 50,000).
  • Remember: Start Up India = 16 January 2016 = DPIIT; Stand Up India = 5 April 2016 = Banks giving loans.
  • Formula: KCC introduced in 1998-99 based on R.V. Gupta Committee — covers crop + post-harvest + allied activity loans.
  • Trap: Mudra loans do NOT require collateral — this is a key feature that is frequently tested in MCQs.
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