Banking Exam SBI General 5 — Questions and Answers
Question 1: What is the minimum balance requirement for an SBI Basic Savings Bank Deposit (BSBD) account?
- ₹500
- ₹1,000
- No minimum balance required (Correct answer)
- ₹250
Correct answer: No minimum balance required
BSBD accounts require zero minimum balance, making them accessible to all segments of society.
Question 2: SBI's Treasury Operations primarily deals with:
- Retail loan disbursements
- Management of SBI's investment portfolio and money market activities (Correct answer)
- Credit card issuance
- NRI account management
Correct answer: Management of SBI's investment portfolio and money market activities
SBI Treasury manages the bank's surplus funds through investments in government securities, forex, and money markets.
Question 3: Which of the following is a money market instrument that SBI issues to raise short-term funds?
- Equity shares
- Certificate of Deposit (CD) (Correct answer)
- Debentures
- Subordinated bonds
Correct answer: Certificate of Deposit (CD)
Banks like SBI issue Certificates of Deposit to borrow funds from institutional investors for short durations.
Question 4: SBI's MCLR (Marginal Cost of Funds based Lending Rate) is reviewed at what frequency?
- Daily
- Weekly
- Monthly (Correct answer)
- Quarterly
Correct answer: Monthly
RBI mandates that banks review and publish MCLR at least on a monthly basis.
Question 5: Which SBI subsidiary provides life insurance products?
- SBI General Insurance
- SBI Life Insurance (Correct answer)
- SBI Mutual Fund
- SBI Capital Markets
Correct answer: SBI Life Insurance
SBI Life Insurance Company Limited is a joint venture between SBI and BNP Paribas Cardif offering life insurance products.
Question 6: The SARFAESI Act empowers SBI to take which action against defaulting borrowers?
- File criminal charges directly in court
- Seize and sell secured assets without court intervention (Correct answer)
- Cancel the borrower's PAN card
- Report the borrower to SEBI
Correct answer: Seize and sell secured assets without court intervention
SARFAESI Act allows secured creditors like SBI to enforce security interests and recover dues without filing a civil suit.
Question 7: SBI's Lok Adalat mechanism is used for resolution of disputes related to:
- Employee grievances only
- Tax disputes with the government
- NPA accounts below a specified threshold (Correct answer)
- Forex transaction complaints
Correct answer: NPA accounts below a specified threshold
SBI uses Lok Adalats to settle NPA cases, typically involving smaller loan amounts, through a consensual, out-of-court process.
Banking Exam SBI General 5
What is the minimum balance requirement for an SBI Basic Savings Bank Deposit (BSBD) account?