Question 1

Under the Pradhan Mantri Mudra Yojana (PMMY), what is the maximum loan amount that can be provided under the 'Shishu' category without collateral?

Accepted Answer

The Pradhan Mantri Mudra Yojana (PMMY), launched in April 2015, provides collateral-free loans to micro and small enterprises. The scheme is divided into three categories: Shishu (up to ₹50,000), Kishore (₹50,001 to ₹5 lakh), and Tarun (₹5 lakh to ₹10 lakh). All three categories are offered without collateral or third-party guarantee. Therefore, the answer is C.

Question 2

Which of the following is NOT a component of the Pradhan Mantri Jan Suraksha Bima Yojana (PMJSBY) framework?

Accepted Answer

The Pradhan Mantri Jan Suraksha Bima Yojana (PMJSBY) framework comprises three schemes: (1) Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) — life insurance, (2) Pradhan Mantri Suraksha Bima Yojana (PMSBY) — accidental insurance, and (3) Atal Pension Yojana (APY) — pension security. Health insurance is NOT a component of PMJSBY; it is covered under separate schemes like Ayushman Bharat (PM-JAY). Therefore, answer is D.

Question 3

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

Accepted Answer

The Pradhan Mantri Suraksha Bima Yojana (PMSBY), launched in May 2015, provides accidental death and disability insurance to individuals aged 18–70 years. The annual premium is ₹12 per annum, making it one of the most affordable insurance schemes in India. The premium is auto-deducted from the enrolled member's bank account on a yearly basis (typically in June). Therefore, answer is B.

Question 4

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

Accepted Answer

The RBI has launched multiple initiatives to promote digital payments, including the Bharat Interface for Money (BHIM) app, Real Time Gross Settlement (RTGS), National Electronic Funds Transfer (NEFT), Immediate Payment Service (IMPS), and the Unified Payments Interface (UPI). However, the most comprehensive and flagship initiative specifically designed to promote digital payments and financial inclusion is the Unified Payments Interface (UPI), launched in April 2016. UPI enables peer-to-peer and merchant payments using a single mobile application across participating banks. Therefore, answer is C.

Question 5

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

Accepted Answer

The Pradhan Mantri Mudra Yojana (PMMY), launched in April 2015, provides collateral-free loans to micro and small enterprises. It 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 business expansion. Therefore, answer is D.

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 specifically targets unbanked and underbanked populations by providing zero-balance savings accounts with RuPay debit cards. Therefore, answer is B.

Question 7

Under the Pradhan Mantri Mudra Yojana (PMMY), what is the maximum loan amount that can be sanctioned under the 'Shishu' category without collateral or third-party guarantee?

Accepted Answer

The Pradhan Mantri Mudra Yojana (PMMY), launched in April 2015, provides collateral-free loans to micro and small enterprises. The scheme is structured into three categories: (1) Shishu — loans up to ₹50,000; (2) Kishor — loans from ₹50,001 to ₹5,00,000; and (3) Tarun — loans from ₹5,00,001 to ₹10,00,000. The Shishu category is designed for first-time entrepreneurs and requires no collateral or third-party guarantee. Therefore, the answer is C.

Question 8

Which of the following best describes the primary objective of the Pradhan Mantri Jan Dhan Yojana (PMJDY) launched in 2014?

Accepted Answer

The Pradhan Mantri Jan Dhan Yojana (PMJDY), 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, for 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. It is NOT limited to credit provision alone, nor is it exclusively a microfinance scheme. Therefore, the answer is B.

Question 9

Under the Banking Regulation Act, 1949, which of the following best describes the role of Scheduled Commercial Banks in promoting financial inclusion?

Accepted Answer

The Banking Regulation Act, 1949, establishes the regulatory framework for banks in India and mandates their role in the financial system. However, the specific mandate for financial inclusion through priority sector lending, branch expansion in underserved areas, and basic savings accounts is derived from the RBI Act, 1934 (Section 45L onwards) and RBI's Master Directions on Priority Sector Lending. The Banking Regulation Act provides the foundational regulatory structure, but financial inclusion mandates are primarily RBI-directed through circulars and guidelines. Scheduled Commercial Banks are required to allocate 40% of net bank credit to priority sectors (agriculture 18%, MSME 8%, others 14%) and maintain a minimum number of branches in rural areas. Therefore, the answer is B.

Question 10

What is the primary purpose of the Pradhan Mantri Suraksha Bima Yojana (PMSBY)?

Accepted Answer

The Pradhan Mantri Suraksha Bima Yojana (PMSBY), launched on May 28, 2015, is a government-backed accident insurance scheme designed to provide affordable life and disability coverage to uninsured and underinsured populations. The scheme offers accidental death and disability insurance at a premium of ₹12 per annum (as of launch), making it accessible to low-income groups. It is administered through banks and insurance companies. Therefore, the answer is A.

Question 11

Under the Pradhan Mantri Jan Dhan Yojana (PMJDY), which of the following statements regarding the basic savings bank deposit account (BSBDA) is INCORRECT?

Accepted Answer

The Pradhan Mantri Jan Dhan Yojana (PMJDY), launched in August 2014, mandates that all scheduled commercial banks offer a Basic Savings Bank Deposit Account (BSBDA) to any individual without any minimum balance requirement. However, PMJDY accounts are NOT eligible for overdraft facility under the Pradhan Mantri Mudra Yojana (PMMY) — overdraft is a separate facility extended only to eligible PMJDY account holders after 6 months of satisfactory operation, and that too under PMMY for business purposes, not as an automatic entitlement. The account must have zero balance, free ATM/debit card access, and free NEFT/RTGS/IMPS transactions. Life insurance cover of ₹30,000 (increased to ₹100,000 in 2015) is provided to account holders. Therefore, Option C is correct — the statement that all PMJDY accounts are automatically eligible for overdraft is incorrect.

Question 12

The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) provides life insurance cover. Which of the following statements about PMJJBY is INCORRECT?

Accepted Answer

The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), launched in May 2015, is a life insurance scheme with the following features: (1) Annual premium of ₹330 (not ₹20 as sometimes confused with PMSBY), (2) Life insurance cover of ₹2 lakh in case of death from any cause, (3) Eligibility age: 18–55 years, (4) Enrollment is voluntary and can be done through banks. The statement that the annual premium is ₹20 is INCORRECT—that is the premium for PMSBY (accident insurance). The correct premium for PMJJBY is ₹330 per annum. Therefore, the answer is C.

Question 13

The Atal Pension Yojana (APY) is a government-backed pension scheme. Which of the following correctly describes the guaranteed monthly pension amount and the target beneficiary group?

Accepted Answer

The Atal Pension Yojana (APY), launched in May 2015, is a defined-benefit pension scheme designed for unorganized sector workers. The scheme guarantees a fixed monthly pension of ₹1,000, ₹2,000, ₹3,000, ₹4,000, or ₹5,000 (depending on contribution level) at age 60. The target beneficiary group is workers in the unorganized sector aged 18–40 years at the time of enrollment. The government co-contributes 50% of the subscriber's contribution (up to a maximum of ₹1,000 per annum) for the first 5 years of subscription. Therefore, the answer is B.

Question 14

Under the Pradhan Mantri Suraksha Bima Yojana (PMSBY), the annual premium and the eligibility age range are respectively:

Accepted Answer

The Pradhan Mantri Suraksha Bima Yojana (PMSBY), launched in May 2015, is an accident insurance scheme. The scheme covers accidental death and permanent/partial disability. The annual premium is ₹12 per annum (a nominal amount), and the scheme is open to individuals aged 18 to 70 years. The premium is deducted from the bank account of the insured person on an annual basis, typically on the anniversary of enrollment. Therefore, the answer is A.

Question 15

The Pradhan Mantri Mudra Yojana (PMMY) classifies micro-enterprises into three categories based on loan amount. Which of the following correctly represents the loan limit for the 'Kishor' category?

Accepted Answer

The Pradhan Mantri Mudra Yojana (PMMY), launched in April 2015, categorizes micro-enterprise loans into three tiers: (1) Shishu: up to ₹50,000, (2) Kishor: above ₹50,000 and up to ₹5 lakh, and (3) Tarun: above ₹5 lakh and up to ₹10 lakh. The 'Kishor' category specifically targets enterprises that have graduated from the Shishu stage and require slightly larger capital. Therefore, the answer is B.

Question 16

The Pradhan Mantri Jan Suraksha Yojana (PMJSY) comprises two insurance schemes. Which of the following correctly identifies both schemes and their respective coverage amounts?

Accepted Answer

The Pradhan Mantri Jan Suraksha Yojana (PMJSY), launched in May 2015, is an umbrella scheme comprising two separate insurance products: (1) Pradhan Mantri Suraksha Bima Yojana (PMSBY) — accidental death and disability insurance with ₹2 lakh accidental death cover and ₹1 lakh permanent total disability cover; (2) Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) — life insurance with ₹2 lakh death cover (from any cause). PMSBY premium is ₹12 per annum, while PMJJBY premium is ₹436 per annum. Both schemes are designed to provide affordable insurance coverage to low-income households. Therefore, answer is B.

Question 17

The Atal Pension Yojana (APY) guarantees a minimum monthly pension to subscribers. Which of the following correctly states the minimum guaranteed monthly pension amount and the age at which it is payable?

Accepted Answer

The Atal Pension Yojana (APY), launched in May 2015, is a government-backed pension scheme for unorganized sector workers. The scheme guarantees a minimum monthly pension of ₹1,000 per month to all subscribers who contribute regularly and reach the age of 60 years. The pension is payable for life, and in case of the subscriber's death, the pension is transferred to the spouse. The minimum pension of ₹1,000 is guaranteed by the Government of India, irrespective of market performance. Subscribers can choose higher pension amounts (₹2,000, ₹3,000, ₹4,000, or ₹5,000) based on their contribution capacity and age of entry. Therefore, answer is A.

Question 18

Under the Pradhan Mantri Suraksha Bima Yojana (PMSBY), the maximum annual premium payable by the insured person is subject to which of the following conditions?

Accepted Answer

The Pradhan Mantri Suraksha Bima Yojana (PMSBY), launched in May 2015, provides accidental death and disability insurance coverage. The scheme mandates that the annual premium is ₹12 per annum per member, which is deducted from the bank account (linked to PMJDY or any savings account) on a specified date each year. The premium is fixed at ₹12 and is NOT subject to income limits, age-based variations, or claim history adjustments. The scheme is designed for all citizens aged 18–70 years. The fixed premium structure ensures universal affordability and accessibility. Therefore, answer is D.

Question 19

The Pradhan Mantri Mudra Yojana (PMMY) classifies micro-enterprises into three categories based on loan amount. Which of the following correctly represents the loan amount range for the 'Tarun' category?

Accepted Answer

The Pradhan Mantri Mudra Yojana (PMMY), launched in April 2015, classifies micro-enterprises into three loan categories: (1) Shishu: loans up to ₹50,000; (2) Kishore: loans from ₹50,001 to ₹5 lakh; (3) Tarun: loans from ₹5 lakh to ₹10 lakh. The Tarun category is designed for established micro-enterprises seeking growth capital. This classification is specified in the PMMY guidelines issued by the Ministry of Micro, Small and Medium Enterprises (MSME). Therefore, answer is B.

Question 20

Under the Pradhan Mantri Jan Dhan Yojana (PMJDY), which of the following is NOT a mandatory feature of the basic savings bank deposit account opened under the scheme?

Accepted Answer

PMJDY, launched in August 2014, mandates that all basic savings bank deposit accounts must offer: (1) zero balance requirement, (2) no minimum balance, (3) RuPay debit card with inbuilt accident insurance cover of ₹1 lakh, and (4) overdraft facility up to ₹10,000 after satisfactory operation for 6 months. Life insurance cover of ₹30,000 on death (from any cause) and ₹1 lakh accidental death cover are provided through the RuPay card. However, fixed deposit facilities and interest-bearing savings accounts with tiered interest rates are NOT mandatory features of the basic account — these are optional value-added services. Therefore, answer is C.

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