ZE
ZESTEXAM

RBI Assistant New Banking Schemes

Study Material · Concept Notes · Shortcuts

This page covers RBI Assistant New Banking Schemes with complete concept notes, 15 graded practice MCQs, key points and exam-specific tips. Free to study.

0 PYQs
none yet
15 Practice
MCQs
8 Key Points
to remember
Free
no login needed
Take Free Mock →Full Practice Set
Also for:IBPS POIBPS ClerkSBI POSBI Clerk
PYQs
0
Practice
15
Key Points
8
Access
Free
Concept Notes

New Banking Schemes— Rules & Concept

Core ConceptRead 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?

Formula BlockMemorise — 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

Exam PatternsWhat 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.

Worked ExampleSolve 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.

Exam TrapsCommon 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

15graded MCQs · easy to hard · full solution & trap analysis

All MCQs →
Practice 1easy

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?

Practice 2easy

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

Practice 3easy

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

Practice 4easy

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

Practice 5easy

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

Practice 6medium

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

Practice 7medium

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 8medium

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

Practice 9medium

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

Practice 10medium

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?

Practice 11hard

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?

Practice 12hard

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?

Practice 13hard

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?

Practice 14hard

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?

Practice 15hard

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?

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.
←Bank Mergers & Appointments
Studied the notes? Now test yourself
See how New Banking Schemes appears in the real RBI Assistant paper
Full timed mock · Instant All-India percentile · Free
Start Free Mock →Practice Panel
✓ Free forever for basic prep✓ No app download✓ Real exam-pattern questions✓ 12,000+ aspirants
Test New Banking Schemes under exam conditions
Free RBI Assistant mock · instant rank · no login
Free Mock →
RBI Assistant New Banking Schemes — Study Material & 15 Practice MCQs | ZestExam