Question 1

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, in an affordable manner to all households in the country. The scheme prioritizes opening zero-balance bank accounts for the unbanked population, particularly in rural and underserved urban areas. Therefore, the answer is B.

Question 2

Under the Pradhan Mantri Mudra Yojana (PMMY), which category of loan is designed for micro-enterprises with an investment in plant and machinery up to ₹10 lakh?

Accepted Answer

The Pradhan Mantri Mudra Yojana (PMMY), 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 lakh), and Tarun (₹5 lakh to ₹10 lakh). The Tarun category is specifically designed for micro-enterprises with investment in plant and machinery between ₹5 lakh and ₹10 lakh. Therefore, the answer is C.

Question 3

Which RBI regulation mandates that all banks must maintain a minimum percentage of their net demand and time liabilities (NDTL) in the form of liquid assets such as government securities and cash?

Accepted Answer

The Statutory Liquidity Ratio (SLR) is the minimum percentage of a bank's net demand and time liabilities (NDTL) that must be maintained in the form of liquid assets — primarily government securities, gold, or cash. SLR is prescribed by the RBI under Section 24 of the Banking Regulation Act, 1949. As of 2024, the SLR is maintained at 18% of NDTL. This requirement ensures that banks maintain adequate liquidity and support government borrowing. Therefore, the answer is B.

Question 4

The Pradhan Mantri Suraksha Bima Yojana (PMSBY) provides accidental death and disability insurance coverage. What is the annual premium amount that the beneficiary must pay?

Accepted Answer

The Pradhan Mantri Suraksha Bima Yojana (PMSBY), launched in May 2015, provides accidental death and disability insurance coverage to all Indian citizens aged 18–70 years. The annual premium is ₹12 per annum, which is deducted from the beneficiary's bank account on a yearly basis (typically in May). This extremely low premium makes the scheme highly accessible for financial inclusion. Therefore, the answer is A.

Question 5

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

Accepted Answer

The Pradhan Mantri Jan Dhan Yojana (PMJDY) provides an overdraft (OD) facility to eligible account holders after six months of satisfactory operation of the account. The maximum overdraft limit is ₹10,000 per account holder. This facility is available only to one adult member per household and is designed to provide emergency credit access to financially included individuals. Therefore, the answer is C.

Question 6

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 (PMMY), 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 to expand their business operations. Therefore, answer is C.

Question 7

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

Accepted Answer

The RBI has promoted digital payments through multiple initiatives, most notably the Payments System Vision 2021 and subsequent frameworks. However, the most direct RBI scheme incentivising digital payments is the Pradhan Mantri Digital India Corporation (PMDI) framework and RBI's own Digital Payments Promotion Scheme. Additionally, the National Payments Corporation of India (NPCI) operates UPI (Unified Payments Interface) as the primary digital payment infrastructure. The RBI's regulatory push through guidelines on digital payment security and the promotion of BHIM-UPI represents the core initiative. Therefore, answer is B.

Question 8

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

Accepted Answer

The Pradhan Mantri Suraksha Bima Yojana (PMSBY), launched on 9 May 2015, provides accidental death and disability insurance coverage to all bank account holders. The annual premium is ₹12 per annum, which is deducted from the policyholder's bank account on a yearly basis (typically in May). The scheme covers accidental death (₹2 lakhs) and permanent disability (₹2 lakhs for both eyes or both limbs, or one eye and one limb; ₹1 lakh for one eye or one limb). Therefore, answer is A.

Question 9

Under the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), what is the maximum age limit for a policyholder to enrol in the scheme?

Accepted Answer

The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), launched on 9 May 2015, is a life insurance scheme for bank account holders. The scheme is open to individuals aged 18–50 years at the time of enrolment. Policyholders can continue coverage until age 55 years if they renew annually. The annual premium is ₹330 (or ₹20 per month, often deducted as ₹330 annually from the bank account). The scheme provides a death benefit of ₹2 lakhs to the nominee. Therefore, answer is C.

Question 10

Which of the following best describes the primary objective of the Pradhan Mantri Jan Dhan Yojana (PMJDY) scheme 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, for all households in the country. The scheme targets unbanked and underbanked populations, particularly in rural and semi-urban areas. It mandates zero-balance accounts with no minimum balance requirement, direct benefit transfer (DBT) facility, and RuPay debit card issuance. Therefore, answer is B.

Question 11

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

Accepted Answer

The Pradhan Mantri Mudra Yojana (PMMY), launched on April 8, 2015, provides collateral-free loans to non-corporate, non-farm micro and small enterprises. PMMY has three loan categories: (1) Shishu: up to ₹50,000, (2) Kishore: ₹50,001 to ₹5 lakh, (3) Tarun: ₹5 lakh to ₹10 lakh. The Tarun category is specifically designed for micro-enterprises seeking loans between ₹5 lakh and ₹10 lakh for business expansion and growth. Therefore, answer is C.

Question 12

The Pradhan Mantri Suraksha Bima Yojana (PMSBY) provides accidental death and disability insurance. Which of the following is a correct feature of PMSBY?

Accepted Answer

PMSBY, launched in May 2015, is a government-backed accident insurance scheme for workers in the unorganized sector and others. The scheme provides: (1) Accidental death benefit of ₹2 lakh; (2) Permanent total disability benefit of ₹2 lakh; (3) Permanent partial disability benefit of ₹1 lakh (for loss of one limb or eye). The annual premium is ₹12 (approximately ₹1 per month), with government co-contribution. The scheme is available to individuals aged 18–70 years. Therefore, answer is B.

Question 13

Which of the following statements regarding the Pradhan Mantri Mudra Yojana (PMMY) is INCORRECT?

Accepted Answer

The Pradhan Mantri Mudra Yojana, launched on 8 April 2015, provides collateral-free loans to micro and small enterprises. The scheme operates through three loan categories: Shishu (up to ₹50,000), Kishore (₹50,001 to ₹5 lakh), and Tarun (₹5 lakh to ₹10 lakh). A critical feature is that PMMY loans are provided by scheduled commercial banks, RRBs, and microfinance institutions (MFIs) — NOT by cooperative banks as a primary lending channel under this scheme. While cooperative banks may participate in some states, they are not designated as primary PMMY lending institutions under the RBI/NABARD framework. Therefore, answer is D.

Question 14

The Pradhan Mantri Suraksha Bima Yojana (PMSBY) provides accident insurance coverage to eligible individuals. Which of the following statements about PMSBY is INCORRECT?

Accepted Answer

PMSBY, launched in May 2015, provides accident insurance coverage of ₹2 lakh for death and permanent total disability, and ₹1 lakh for permanent partial disability. The annual premium is ₹12 per annum (or ₹1 per month), and it is available to individuals aged 18–70 years with a bank account. The scheme is implemented through insurance companies and banks. Option D is INCORRECT because PMSBY is NOT limited to BPL (Below Poverty Line) families — it is available to all eligible individuals aged 18–70 with a bank account, regardless of income status. This is a key feature of the scheme's financial inclusion mandate. Therefore, answer is D.

Question 15

Under the Pradhan Mantri Jan Dhan Yojana (PMJDY), which of the following is NOT a mandatory feature of the basic savings bank deposit account (BSBDA) that banks must offer to all citizens?

Accepted Answer

PMJDY, launched in August 2014, mandates that all banks offer a BSBDA with zero balance, no minimum balance requirement, free debit card, accidental death insurance cover of ₹1 lakh, and overdraft facility up to ₹10,000 (for eligible account holders after 6 months of satisfactory operation). However, life insurance cover is NOT a mandatory feature of BSBDA under PMJDY guidelines issued by RBI and Department of Financial Services. Life insurance (₹30,000 cover) is offered as an optional add-on through Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), a separate scheme. Therefore, answer is C.

Question 16

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 categories under PMMY and their respective maximum loan amounts?

Accepted Answer

PMMY, launched in April 2015, has three loan categories: (1) Shishu — up to ₹50,000; (2) Kishore — ₹50,001 to ₹5 lakh; (3) Tarun — ₹5 lakh to ₹10 lakh. These are designed for non-farm micro and small enterprises without collateral. The scheme is implemented through SIDBI, banks, and MFIs. Option B correctly states all three categories and their limits as per the official PMMY guidelines issued by the Ministry of Micro, Small and Medium Enterprises (MSME). Therefore, answer is B.

Question 17

Under the Pradhan Mantri Jan Dhan Yojana (PMJDY), the RuPay debit card issued as part of the basic savings bank deposit account (BSBDA) includes which of the following features?

Accepted Answer

PMJDY guidelines mandate that the RuPay debit card issued with BSBDA includes: (1) zero balance account opening, (2) free RuPay debit card, (3) accidental death insurance of ₹1 lakh, and (4) overdraft facility up to ₹10,000 after 6 months of satisfactory operation. The RuPay card itself is a domestic payment system card (not international) and does NOT include cashback or reward points as a mandatory feature — these are optional value-adds offered by individual banks. Option C correctly identifies that the RuPay debit card includes accidental death insurance of ₹1 lakh as a mandatory feature. Therefore, answer is C.

Question 18

The Pradhan Mantri Mudra Yojana (PMMY) is implemented through a three-tier institutional structure. Which of the following correctly identifies the roles of the three implementing agencies and their primary target segments?

Accepted Answer

PMMY (April 2015) is implemented through three tiers: (1) SIDBI (Small Industries Development Bank of India) — apex institution providing refinance to banks and MFIs; (2) Scheduled Banks — primary lending institutions providing loans directly to micro and small enterprises; (3) Micro Finance Institutions (MFIs) — reaching underserved and unbanked populations. Option A correctly identifies this three-tier structure and the roles of each agency. SIDBI provides refinance (not direct lending), banks provide direct loans, and MFIs focus on underserved segments. Therefore, answer is A.

Question 19

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 zero-balance savings account with 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 maintains a minimum balance or uses the account regularly for deposits/withdrawals. The scheme does not mandate overdraft facilities at account opening; overdraft eligibility (up to ₹10,000) is conditional on account performance. Therefore, answer is C.

Question 20

The Pradhan Mantri Mudra Yojana (PMMY) was launched to provide collateral-free loans to micro and small enterprises. Which of the following correctly describes the three loan categories under PMMY?

Accepted Answer

PMMY, launched in April 2015, offers three loan products: (1) Shishu — loans up to ₹50,000 for new micro-entrepreneurs; (2) Kishore — loans from ₹50,001 to ₹5 lakh for enterprises in growth phase; (3) Tarun — loans from ₹5 lakh to ₹10 lakh for established enterprises. All three are collateral-free and credit-guarantee-backed by the Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE). Therefore, answer is B.

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