Question 1

Which of the following is a PRIMARY objective of the Pradhan Mantri Jan Dhan Yojana (PMJDY)?

Accepted Answer

The Pradhan Mantri Jan Dhan Yojana, launched on 28 August 2014, is a national mission for financial inclusion aimed at ensuring access to financial services, namely banking/savings accounts, remittance, credit, insurance, and pension, in an affordable manner. The scheme specifically targets unbanked and underbanked populations. Option B correctly identifies financial inclusion through universal access to banking services as the primary objective. Options A, C, and D represent secondary or tangential benefits, not the core mandate of PMJDY as defined by the Department of Financial Services, Ministry of Finance.

Question 2

Under the Pradhan Mantri Mudra Yojana (PMMY), which category of loan is designed for micro-enterprises with a maximum loan amount of ₹10 lakhs?

Accepted Answer

The Pradhan Mantri Mudra Yojana, launched on 8 April 2015, categorises loans into three tiers: Shishu (up to ₹50,000), Kishore (₹50,001 to ₹5 lakhs), and Tarun (₹5 lakhs to ₹10 lakhs). The Tarun category is specifically designed for micro-enterprises seeking loans between ₹5 lakhs and ₹10 lakhs for expansion and growth. Option C correctly identifies Tarun as the category with a maximum of ₹10 lakhs. Options A, B, and D either misstate the loan limits or refer to non-existent PMMY categories.

Question 3

Which RBI initiative aims to promote digital payments and reduce cash transactions in the economy?

Accepted Answer

The RBI has launched multiple initiatives to promote digital payments and financial inclusion, most notably the National Payments Corporation of India (NPCI) oversight of systems like NEFT, RTGS, IMPS, and UPI. However, the most comprehensive and recent RBI initiative specifically branded to promote digital payments and reduce cash dependency is the Payments Vision 2021-2025 framework and the continued expansion of the Unified Payments Interface (UPI). Option B correctly identifies UPI as the flagship RBI-backed initiative (through NPCI) designed to promote digital payments and reduce cash transactions. Options A, C, and D are either regulatory frameworks or secondary initiatives, not the primary digital payment promotion scheme.

Question 4

The Pradhan Mantri Suraksha Bima Yojana (PMSBY) provides accidental death and disability insurance coverage. What is the annual premium amount for this scheme?

Accepted Answer

The Pradhan Mantri Suraksha Bima Yojana (PMSBY), launched on 1 June 2015, is a personal accident insurance scheme offering accidental death and disability coverage. The annual premium is ₹12 per annum, making it one of the most affordable insurance products in India. This premium is typically deducted from the savings account linked to the scheme. Option A correctly states ₹12 per annum. Options B, C, and D represent incorrect premium amounts that may confuse candidates with other insurance schemes or miscalculations.

Question 5

Which of the following best describes the role of Business Correspondents (BCs) in promoting financial inclusion in India?

Accepted Answer

Business Correspondents (BCs) are agents appointed by banks to extend banking services to unbanked and underbanked areas, particularly in rural regions. BCs act as intermediaries between banks and customers, providing services such as account opening, deposits, withdrawals, and basic financial literacy. This model is crucial for financial inclusion as it reduces the need for physical bank branches in remote areas. Option D correctly identifies BCs as bank-appointed agents providing banking services in underserved areas. Options A, B, and C either misstate the BC role or confuse it with other banking entities.

Question 6

Which of the following best describes the primary objective of the Pradhan Mantri Jan Dhan Yojana (PMJDY)?

Accepted Answer

The Pradhan Mantri Jan Dhan Yojana, launched in August 2014, is a national mission for financial inclusion aimed at ensuring access to financial services, namely banking/savings accounts, remittance, credit, insurance, and pension to all households in the country. The scheme prioritizes opening zero-balance bank accounts for unbanked and underbanked populations, particularly in rural areas. Therefore, the answer is B.

Question 7

Which RBI initiative aims to promote digital payments and reduce cash circulation in the economy?

Accepted Answer

The RBI has promoted several digital payment initiatives, but the most comprehensive and widely recognized initiative is the National Payments Corporation of India (NPCI)-led digital payment ecosystem, supported by RBI's regulatory framework. However, the specific RBI initiative most directly aimed at promoting digital payments and reducing cash is the RBI's push for digital payment infrastructure through NPCI, UPI (Unified Payments Interface), and regulatory guidelines encouraging cashless transactions. The most accurate answer in the context of RBI's direct initiative is the promotion of digital payments through regulatory measures and infrastructure support. Therefore, the answer is B.

Question 8

Which of the following is NOT a component of financial inclusion as defined by the RBI?

Accepted Answer

Financial inclusion, as defined by the RBI, encompasses access to banking services (savings accounts, credit, insurance, pension), digital payment systems, financial literacy, and consumer protection. It does NOT include direct government subsidies for specific sectors or price controls on banking services. The RBI's definition focuses on access, affordability, and awareness — not on government subsidies or interest rate regulation for specific sectors. Therefore, the answer is C.

Question 9

Which of the following is a PRIMARY objective of the Pradhan Mantri Jan Dhan Yojana (PMJDY) launched in 2014?

Accepted Answer

The Pradhan Mantri Jan Dhan Yojana (PMJDY), launched on August 28, 2014, is a national mission for financial inclusion aimed at ensuring access to financial services, namely banking/savings accounts, remittance, credit, insurance, and pension to all households in the country. The scheme prioritizes opening zero-balance bank accounts for unbanked and underbanked populations, particularly in rural and semi-urban areas. While insurance and pension products are ancillary benefits under the scheme, the PRIMARY objective is universal access to basic banking services through deposit accounts. Therefore, the answer is B.

Question 10

Under the RBI's Priority Sector Lending (PSL) guidelines, what is the minimum percentage of Adjusted Net Bank Credit (ANBC) that Scheduled Commercial Banks (excluding Small Finance Banks and Microfinance Banks) must lend to the priority sector?

Accepted Answer

Under RBI's Priority Sector Lending guidelines, Scheduled Commercial Banks (SCBs), excluding Small Finance Banks (SFBs) and Microfinance Banks (MFBs), are required to lend a minimum of 40% of their Adjusted Net Bank Credit (ANBC) or Credit Equivalent Amount of Off-Balance Sheet Exposures (whichever is higher) to the priority sector. This mandate is part of RBI's financial inclusion framework and is monitored quarterly. Therefore, the answer is C.

Question 11

Under the Pradhan Mantri Mudra Yojana (PMMY), which of the following loan categories is designed for micro-enterprises with a loan amount up to ₹10 lakhs?

Accepted Answer

The Pradhan Mantri Mudra Yojana, launched in April 2015, provides collateral-free loans to micro and small enterprises. The scheme has three categories: Shishu (up to ₹50,000), Kishore (₹50,001 to ₹5 lakhs), and Tarun (₹5 lakhs to ₹10 lakhs). The Tarun category is specifically designed for micro-enterprises seeking loans between ₹5 lakhs and ₹10 lakhs for expansion and growth. Therefore, the answer is C.

Question 12

The Pradhan Mantri Mudra Yojana (PMMY) was launched to provide collateral-free loans to micro and small enterprises. Which of the following correctly identifies the three loan products under PMMY and their respective maximum loan amounts?

Accepted Answer

The Pradhan Mantri Mudra Yojana (PMMY), launched in April 2015, offers three loan products: (1) Shishu — loans up to ₹50,000 for first-time entrepreneurs and micro-enterprises; (2) Kishore — loans from ₹50,001 to ₹5 lakh for enterprises that have completed 18 months of operation; (3) Tarun — loans from ₹5 lakh to ₹10 lakh for enterprises that have completed 5 years of operation and wish to expand. These loan amounts are fixed under the PMMY guidelines issued by the Ministry of Finance and monitored by the RBI. Therefore, answer is B.

Question 13

Under the Pradhan Mantri Jan Dhan Yojana (PMJDY), what is the maximum life insurance cover provided to account holders under the Pradhan Mantri Suraksha Bima Yojana (PMSBY) component?

Accepted Answer

The Pradhan Mantri Jan Dhan Yojana (PMJDY), launched in August 2014, includes integrated insurance coverage. The Pradhan Mantri Suraksha Bima Yojana (PMSBY) provides accidental death insurance cover of ₹2 lakh to eligible PMJDY account holders aged 18–70 years, with an annual premium of ₹12. This is a core feature of financial inclusion under PMJDY, designed to provide social security to the unbanked population. The scheme is administered by participating banks and insurance companies under RBI and Ministry of Finance guidelines.

Question 14

Which of the following is NOT a core objective of the Pradhan Mantri Mudra Yojana (PMMY)?

Accepted Answer

The Pradhan Mantri Mudra Yojana (PMMY), launched in April 2015, aims to provide collateral-free loans to micro and small enterprises (MSEs) and self-employed individuals. Core objectives include: (1) financial inclusion of unbanked/underbanked MSEs, (2) employment generation through entrepreneurship, (3) credit flow to non-farm sector MSEs, and (4) promotion of skill-based entrepreneurship. PMMY does NOT aim to regulate interest rates or set uniform pricing across lenders — loan pricing remains market-driven within RBI guidelines. This is a credit-linked scheme, not a rate-setting mechanism.

Question 15

Under the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), what is the annual premium payable by the account holder, and from which date is the cover effective each year?

Accepted Answer

The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), launched in May 2015, provides life insurance cover of ₹2 lakh for natural death to individuals aged 18–50 years. The annual premium is ₹330, which is deducted from the account holder's bank account between May 31 and June 15 each year. The cover is effective from June 1 to May 31 of the following year. This scheme is administered by participating life insurance companies and banks under Ministry of Finance guidelines. The premium amount and deduction window are standardized across all participating institutions.

Question 16

Which of the following statements regarding the Pradhan Mantri Fasal Bima Yojana (PMFBY) is INCORRECT?

Accepted Answer

The Pradhan Mantri Fasal Bima Yojana (PMFBY), launched in January 2016, is a crop insurance scheme designed to protect farmers against crop loss due to natural calamities, pests, and diseases. Key features include: (1) farmer premium contribution of 2% for kharif crops and 1.5% for rabi crops, (2) government subsidy covering the remaining premium, (3) coverage of yield losses and prevented sowing, and (4) administration by insurance companies and state governments. PMFBY does NOT provide direct cash transfers to farmers for general agricultural development — it is strictly a loss-indemnity scheme triggered by crop failure or yield loss, not a subsidy for inputs or general farming expenses.

Question 17

Under the Pradhan Mantri Jan Dhan Yojana (PMJDY), what is the maximum limit on the overdraft facility available to eligible account holders, and after how many months of satisfactory operation is this overdraft facility granted?

Accepted Answer

The Pradhan Mantri Jan Dhan Yojana (PMJDY), launched in August 2014, provides a basic savings account with integrated financial services. The overdraft facility under PMJDY is limited to ₹10,000 per eligible account holder. This overdraft is granted only after the account has been operated satisfactorily for a minimum of 6 months. The overdraft facility is designed to provide emergency credit access to financially excluded populations. The ₹10,000 limit and 6-month eligibility period are standardized across all participating banks under RBI and Ministry of Finance guidelines.

Question 18

Under the Pradhan Mantri Jan Dhan Yojana (PMJDY), which of the following is NOT a mandatory feature that banks must provide to account holders?

Accepted Answer

PMJDY, launched in August 2014, mandates that all eligible citizens receive a basic savings bank account with zero balance, a RuPay debit card, and accidental death insurance cover of ₹1 lakh. However, life insurance cover of ₹30,000 is optional and provided only if the account holder activates the RuPay card and maintains minimum transaction criteria. Therefore, answer is D.

Question 19

The Pradhan Mantri Mudra Yojana (PMMY) provides collateral-free loans to micro and small enterprises. Which of the following loan categories under PMMY has the highest loan limit?

Accepted Answer

PMMY, launched in April 2015, comprises three loan categories: Shishu (up to ₹50,000), Kishore (₹50,001 to ₹5 lakh), and Tarun (₹5 lakh to ₹10 lakh). The Tarun category targets enterprises that have completed their growth phase and require larger capital for expansion. Therefore, answer is C.

Question 20

The Pradhan Mantri Suraksha Bima Yojana (PMSBY) provides accidental death and disability insurance. What is the annual premium amount that the subscriber must pay, and who bears the cost if the subscriber is unable to pay?

Accepted Answer

PMSBY, launched in May 2015, requires an annual premium of ₹12 per subscriber for accidental death and disability coverage. The premium is deducted from the subscriber's bank account on a specified date each year. If the subscriber's account has insufficient balance, the bank does not automatically deduct the premium, and the subscriber must manually pay or the coverage lapses. However, the government does NOT subsidize this premium — the subscriber bears the full cost. Therefore, answer is A.

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