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SBI PO New Banking Schemes

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This page covers SBI 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

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

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

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Practice 1medium

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

Practice 2medium

Under the Pradhan Mantri Suraksha Bima Yojana (PMSBY), what is the maximum age limit for enrollment and the annual premium amount that the policyholder must pay?

Practice 3medium

The Reserve Bank of India introduced the 'Liquidity Coverage Ratio' (LCR) as part of Basel III norms. Which of the following correctly defines LCR and its regulatory requirement?

Practice 4medium

The 'Pradhan Mantri Jan Dhan Yojana' (PMJDY) is a financial inclusion scheme that provides basic banking services to the unbanked population. Which of the following is NOT a feature of PMJDY accounts?

Practice 5medium

The Reserve Bank of India introduced the 'Regulatory Sandbox' framework to foster innovation in the financial services sector. Which of the following correctly describes the primary objective and scope of this framework?

Practice 6medium

The Reserve Bank of India launched the 'Pradhan Mantri Jeevan Jyoti Bima Yojana' (PMJJBY) in partnership with banks to provide life insurance coverage. What is the annual premium amount under this scheme?

Practice 7medium

Under the Pradhan Mantri Mudra Yojana (PMMY), what is the maximum loan amount that can be availed under the 'Shishu' category for micro-enterprises?

Practice 8medium

The Pradhan Mantri Jan Dhan Yojana (PMJDY) aims to provide universal access to banking services. Under this scheme, what is the overdraft (OD) limit available to eligible account holders after 6 months of satisfactory operation?

Practice 9medium

The RBI introduced the 'Payments System Vision 2021' to enhance digital payments infrastructure. Which of the following was NOT a key objective of this vision document?

Practice 10medium

Under the Pradhan Mantri Suraksha Bima Yojana (PMSBY), what is the annual premium and the accidental death/disability coverage amount?

Practice 11medium

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

Practice 12medium

The Reserve Bank of India launched the 'Pradhan Mantri Jeevan Jyoti Bima Yojana' (PMJJBY) in partnership with commercial banks. Which of the following correctly describes the primary objective and coverage of this scheme?

Practice 13hard

The 'Credit Guarantee Scheme for Startups (CGSS)', now integrated into the 'Pradhan Mantri Mudra Yojana (PMMY)', provides credit guarantee coverage to startups. What is the maximum loan amount eligible for 100% credit guarantee under CGSS?

Practice 14hard

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 strengthened under UPI 2.0 guidelines as per NPCI directives?

Practice 15hard

Under the RBI's 'Regulatory Sandbox' framework, which of the following correctly describes the scope and regulatory treatment of fintech innovations tested within the sandbox?

Practice 16hard

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 17hard

Under the RBI's 'Revised Framework for Regulation of Digital Lending' (2023), which of the following is a mandatory requirement for digital lending platforms operating in India?

Practice 18hard

The 'Pradhan Mantri Mudra Yojana (PMMY)' scheme, which provides collateral-free loans to micro and small enterprises, categorizes loans into three categories. Which of the following is NOT one of the three PMMY loan categories?

Practice 19hard

Under the RBI's 'Framework for Regulation of Credit Rating Agencies (CRAs)' and recent amendments (2023-24), which of the following is a requirement for CRAs operating in India?

Practice 20hard

The RBI introduced the 'Pradhan Mantri Mudra Yojana (PMMY)' to provide collateral-free loans to micro and small enterprises. Under this scheme, which of the following loan products is NOT covered?

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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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