Question 1

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 classifies loans into 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 seeking loans between ₹5 lakh and ₹10 lakh. Therefore, answer is D.

Question 2

The Atal Pension Yojana (APY) is a government-backed pension scheme. Which of the following correctly describes the guaranteed minimum pension under APY?

Accepted Answer

The Atal Pension Yojana guarantees a minimum monthly pension of ₹1,000, ₹2,000, ₹3,000, ₹4,000, or ₹5,000 per month (depending on contribution tier) to subscribers at age 60, provided they have contributed for at least 20 years. The government co-contributes 50% of the subscriber's contribution or ₹1,000 per annum, whichever is lower. Therefore, answer is C.

Question 3

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

Accepted Answer

The Pradhan Mantri Jan Dhan Yojana is a national financial inclusion scheme launched in August 2014 to provide universal access to banking services, with emphasis on savings accounts, remittance facilities, credit, insurance, and pension. The scheme targets unbanked and underbanked populations across India. Therefore, answer is B.

Question 4

The Sukanya Samriddhi Yojana (SSY) is a savings scheme for the girl child. Which of the following statements about SSY is correct?

Accepted Answer

The Sukanya Samriddhi Yojana is a savings scheme for girls, with a maximum annual deposit of ₹1.5 lakh. The account matures at age 21 or when the girl gets married after age 18. The scheme offers a competitive interest rate (currently 8.2% per annum as of 2024) and tax benefits under Section 80C of the Income Tax Act. Therefore, answer is A.

Question 5

The Pradhan Mantri Jeevan Bima Yojana (PMJBY) is a life insurance scheme. Which of the following correctly describes the coverage and eligibility under PMJBY?

Accepted Answer

The Pradhan Mantri Jeevan Bima Yojana provides life insurance coverage of ₹2 lakh to individuals aged 18 to 59 years with a premium of ₹330 per annum (or ₹12 per month via auto-debit). The scheme is administered by Life Insurance Corporation (LIC) and other participating insurers. Therefore, answer is B.

Question 6

Under the 'Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)', what is the annual premium and the life insurance cover provided to eligible beneficiaries?

Accepted Answer

The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), launched in May 2015, is a low-cost term life insurance scheme designed to provide financial security to the family of the insured in case of death. The scheme offers life insurance cover of ₹2 lakh with an annual premium of ₹330 per annum. The scheme is available to all citizens aged 18–50 years and is implemented through Life Insurance Corporation (LIC) and other insurance companies in partnership with banks. The premium is deducted from the bank account on an annual basis. Therefore, the answer is C.

Question 7

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?

Accepted Answer

The Pradhan Mantri Mudra Yojana (PMMY), launched by RBI in partnership with the Government of India in April 2015, provides collateral-free loans to micro and small enterprises through three loan categories: Shishu (up to ₹50,000), Kishore (₹50,001 to ₹5 lakh), and Tarun (₹5 lakh to ₹10 lakh). These categories are designed to support entrepreneurs at different stages of business growth. The scheme is implemented through scheduled commercial banks, regional rural banks, and microfinance institutions. Therefore, the answer is B.

Question 8

The 'Pradhan Mantri Awas Yojana (Urban)' is a government housing scheme. Which of the following statements regarding this scheme is CORRECT?

Accepted Answer

The Pradhan Mantri Awas Yojana (Urban), launched in June 2015, is a centrally-sponsored housing scheme aimed at providing affordable housing to economically weaker sections (EWS), low-income groups (LIG), and middle-income groups (MIG) in urban areas. The scheme provides financial assistance through subsidized home loans and direct subsidy to eligible beneficiaries. Key features include: (1) Interest subsidy on home loans up to ₹9 lakh, (2) Loan tenure of up to 20 years, (3) Eligibility for families with annual income up to ₹18 lakh (for MIG category), and (4) Implementation through banks and housing finance companies. The scheme aims to construct approximately 1 crore houses by 2024. Therefore, the answer is B.

Question 9

Which of the following statements regarding the 'Pradhan Mantri Jan Dhan Yojana (PMJDY)' is CORRECT?

Accepted Answer

The Pradhan Mantri Jan Dhan Yojana (PMJDY), launched in August 2014, is a national financial inclusion scheme aimed at providing universal access to banking services. Key features include: (1) Zero-balance savings accounts for all citizens, (2) Free RuPay debit cards, (3) Accidental death insurance cover of ₹1 lakh, and (4) Overdraft facility of up to ₹10,000 for eligible account holders. The scheme is implemented by all scheduled commercial banks, regional rural banks, and cooperative banks. PMJDY has been instrumental in bringing millions of unbanked Indians into the formal financial system. Therefore, the answer is B.

Question 10

The 'Pradhan Mantri Suraksha Bima Yojana (PMSBY)' is a government-backed accident insurance scheme. What is the annual premium amount and the accident insurance cover provided under this scheme?

Accepted Answer

The Pradhan Mantri Suraksha Bima Yojana (PMSBY), launched in May 2015, is a low-cost accident insurance scheme designed to provide financial protection against accidental death or permanent disability. The scheme offers an annual premium of ₹12 per annum with an accident insurance cover of ₹2 lakh for accidental death or permanent total disability and ₹1 lakh for permanent partial disability. The scheme is available to all citizens aged 18–70 years and is implemented through banks, insurance companies, and microfinance institutions. Therefore, the answer is B.

Question 11

The RBI's 'Payments Infrastructure Development Fund (PIDF)' scheme, announced in 2021, aims to incentivize payment system infrastructure development in tier-2 and tier-3 cities. Which of the following correctly describes the fund structure and eligibility criteria?

Accepted Answer

The Payments Infrastructure Development Fund (PIDF), announced by RBI in March 2021, is a ₹500 crore fund designed to incentivize deployment of payment infrastructure (PoS terminals, QR codes, payment gateways) in tier-2 and tier-3 cities and rural areas. The fund operates on a cost-reimbursement model where eligible entities (banks, non-banks, fintech companies, payment aggregators) can claim reimbursement for 50% of the cost of deploying payment acceptance infrastructure, subject to a maximum cap of ₹10 lakh per location. The scheme is open to all payment service providers (PSPs) and is administered by RBI. However, the scheme does NOT provide direct grants to individual merchants or retailers — reimbursement is provided only to authorized payment service providers and infrastructure operators. Therefore, answer is B.

Question 12

The RBI's 'Liquidity Coverage Ratio (LCR)' requirement, mandated under Basel III framework, specifies that banks must maintain a minimum LCR of 100%. Which of the following correctly describes the composition and calculation of LCR?

Accepted Answer

The Liquidity Coverage Ratio (LCR), mandated by RBI under Basel III implementation (effective from January 2015, with full compliance by January 2019), requires banks to maintain a minimum LCR of 100%. LCR is calculated as: LCR = High Quality Liquid Assets (HQLA) / Total Net Cash Outflows over 30 days. HQLA includes cash, central bank reserves, and high-quality government securities. Total Net Cash Outflows are calculated by applying regulatory haircuts and run-off rates to deposits, borrowings, and other liabilities. However, the LCR requirement does NOT mandate that banks maintain 100% of deposits as liquid assets — it requires that liquid assets cover net cash outflows (not total deposits) over a 30-day stress scenario. The 100% LCR means liquid assets equal or exceed net outflows, not that all deposits must be held as liquid assets. Therefore, answer is D.

Question 13

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 under UPI 2.0 as per NPCI guidelines?

Accepted Answer

UPI 2.0, operationalized by NPCI (National Payments Corporation of India) in 2020-2021, introduced features such as: (1) Collect+ for recurring payments, (2) One-time Mandate (OTM) for subscription-based payments, (3) Offline transaction capability for low-value payments, and (4) Enhanced security through tokenization. However, UPI 2.0 does NOT introduce a fixed transaction limit cap of ₹1 lakh per transaction — UPI transactions remain governed by individual bank limits and NPCI guidelines which allow higher limits for institutional payments. The framework focuses on interoperability and ease of use, not on imposing new ceiling limits. Therefore, answer is C.

Question 14

Under the RBI's 'Retail Direct Scheme' (launched in November 2021), which of the following statements regarding retail investor access to Government Securities is INCORRECT?

Accepted Answer

The Retail Direct Scheme, operationalized by RBI in November 2021, allows individual retail investors to directly participate in the Government Securities (G-Sec) market without requiring a Demat account or broker intermediation. Key features include: (1) Direct account opening with RBI's Retail Debt Market Segment (RDMS), (2) Participation in both primary (auction) and secondary market trading, (3) Minimum investment of ₹10,000 for Treasury Bills and ₹25,000 for Government Bonds, and (4) Access via the RBI Retail Direct portal. However, the scheme does NOT allow retail investors to short-sell Government Securities — short-selling in G-Sec market remains restricted to authorized dealers and institutional participants only. Retail investors can only take long positions. Therefore, answer is D.

Question 15

The RBI's 'Regulatory Sandbox' framework, operationalized in 2019, allows fintech companies and banks to test innovative financial products in a controlled environment. Which of the following is a CORRECT statement regarding the sandbox's scope and regulatory treatment?

Accepted Answer

The RBI's Regulatory Sandbox (operationalized in 2019, with subsequent phases in 2020-2021) permits authorized entities (banks, fintech companies, payment service providers) to test innovative financial products and services in a controlled, time-bound environment with regulatory forbearance. Key features include: (1) Exemption from certain regulatory requirements during the testing phase, (2) Limited customer base (capped at ₹50 crore in aggregate exposure or 1,000 customers, whichever is lower), (3) Time-bound testing period (typically 4-6 months, extendable), and (4) Regulatory oversight and monitoring by RBI. However, the sandbox does NOT provide exemption from Anti-Money Laundering (AML) and Know Your Customer (KYC) compliance — these are mandatory even in the sandbox environment. All participants must comply with AML/CFT norms and KYC requirements as per the Prevention of Money Laundering Act (PMLA) 2002. Therefore, answer is C.

RBI Assistant New Banking Schemes

New Banking Schemes— Rules & Concept

Key Points to Remember

Exam-Specific Tips

New Banking Schemes — Practice Questions

60-Second Revision — New Banking Schemes