ENABLER

“A compendium of descriptive study

material”
November’2025

SBILD, Purnea
Patna Circle
Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 1 | P a g e
PREFACE

From the Desk of Chief General Manager

Dear Colleagues,

Promotion exercise in our organisation is a systematic process that tests the aptitude
and attitude of an employee for shouldering higher responsibilities. This requires an
employee to have skill sets matching future requirements and overall understanding of
all facts of Banking & Finance and remain updated with the systems and procedures
involved therein.

It gives me immense pleasure to share that SBILD, Purnea has come up with the noble
initiative of launching a booklet “ENABLER”, a compendium of descriptive study
material for the benefit of our employees preparing for the promotional examinations.

I compliment Team SBILD, Purnea for bringing out this booklet at an opportune time
when promotions are just round the corner. I am sure that this booklet will be beneficial
to not only those who are preparing for the promotional exams, but also for anyone
desirous of updating themselves and keep in sync with the ever-evolving banking
paradigm. I wish the best to all the promotion aspirants. I am sure that you will make the
best use of this booklet and succeed in your endeavours.

With best wishes,

Anurag Joshi

Chief General Manager

Patna Circle.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 2 | P a g e
FOREWORD

From the Desk of DGM & CDO

Dear Colleagues,

I take this opportunity to compliment Team SBILD Purnea for launching a booklet
“ENABLER”, a compendium of descriptive material for the benefit of our employees
preparing for the promotional examinations.

It contains wide range of rationale, for & against, situational analysis, essay writing and
business correspondence. This booklet will give readers a clear idea about answering
descriptive questions.

I congratulate team SBILD Purnea and place on record the special efforts put in by Shri
Roushan Raj Tiwary, Chief Manager (Faculty) under the able leadership of the AGM &
Director, Shri Amal Krishna Aditya for this valuable initiative and for compiling the much-
needed booklet on descriptive material for the promotion aspirants.

With best wishes,

Devesh Mittal

Deputy General Manager & Circle Development Officer

Patna Circle.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 3 | P a g e
ACKNOWLEDGEMENT

Dear Colleagues,

I am glad to release a booklet “ENABLER”, a compendium of descriptive materials.

“ENABLER” is an endeavor of Team SBILD Purnea, which is a comprehensive
compilation of descriptive materials that will be useful for the upcoming Promotion
Examinations. The booklet covers topics related to Rationale, For & Against, Situational
Analysis, Essay Writing and Business Correspondence.

I take this opportunity to thank Respected Anurag Joshi Sir, Chief General Manager,
Patna Circle and Sri Devesh Mittal Sir, Deputy General Manager & Circle Development
Officer, Patna Circle for their valuable inputs in this regard. I must congratulate and
compliment Shri Roushan Raj Tiwary, Chief Manager (Faculty) for putting in untiring
efforts to prepare this booklet for the benefit of the aspirants.

Wishing the readers success in ensuing examinations.

Amal Krishna Aditya

AGM & Director
SBILD, Purnea.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 4 | P a g e
 TABLE OF CONTENTS
PAGE
SL TOPIC No.

1 RATIONALES 6-54

2 FOR & AGAINST 55-101

3 SITUATIONAL 102-139
ANALYSIS

4 BUSINESS/OFFICE 140-179
CORRESPONDENCE

ESSAY WRITING
5 (Especially for Trainee 180-231
Officer Examination)

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 5 | P a g e
 RATIONALES

1. Depositors of banks are unsecured creditors.

• No depositor has any right over the assets of the bank.
• However, DICGC cover up Rupees Five Lakh is available for
each depositor.
2. Vacation Policy should be implemented effectively.
• It improves the efficiency of the staff members. It will improve
the work-life balance of an employee.
• To avert frauds committed by the staff members positioned at
sensitive posts.
• It is as per RBI directives. It is also a preventive vigilance
measure.
3. Whistleblower Policy has been introduced.
• It helps to combat fraud.
• It encourages people to speak up and expose wrongdoings.
• The identity of whistleblower will not be revealed.
4. Cash balance in the branch should be kept at minimum level.
• It is an idle asset.
• Does not fetch any income.
• Higher cash balance increases security and safety concern.
5. Transactions in the Dormant/Inoperative account should be
allowed after proper KYC and CDD.
• To ascertain the genuineness of the customer.
• To prevent any kind of fraud.
• To protect the interest of the account holder as well as interest
of the bank.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 6 | P a g e
 6. DP Note is taken in all applicable loan documents.
• Borrower will be personally liable for the debt.
• Banks can proceed against the borrower as per law.
7. Passbook printing (including front page) can be done in any
branch of SBI.
• Now every customer is a customer of bank not a customer of a
particular branch.
• It increases the satisfaction and convenience of a customer.
• SBI is truly a banker to every Indian and ready to serve
customers through any branch, any time & anywhere (24x7).
8. SLR (statutory liquidity ratio) has been regulated by RBI.
• With the help of SLR RBI regulates flow of credit in the county.
• RBI also controls inflation/deflation through SLR.
• It is a statutory requirement.
9. Nominee’s signature is not required.
• Nomination can be changed by the account holder any time.
• Not permitted under section 45Z A to F of BR Act 1949.
• However, as per RBI’s direction, name of the nominee should
be indicated in the passbook as per the request of the customer
only.
10. Work from Home concept has been introduced.
• It will improve work-life balance of an employee.
• It is cost efficient to the company.
• Improves the efficiency and output of an organization with the
optimum use of technology any time.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 7 | P a g e
 11. Compensation Policy has been introduced.
• Customers will be compensated for any act of omission or
commission by the bank.
• It increases trust amongst the customers and decreases chance
of reputational loss to the bank.
12. The keys of surrendered locker are interchanged before
new allotment.
• To prevent chance of any untoward incident being carried by
the previous locker holder.
• To avoid frauds and litigation in future.
13. At the time of opening account of a Partnership Firm,
Partnership letter is obtained.
• Partnership letter (COS-37) gives the firm an authority to open
a bank account.
• All the partners accept their liability to the bank in case of any
change of constitution.
14. LTV ratio plays an important role in bank finance.
• It is a safety margin for the bank.
• It is a cushion available for the banks in the event of loan
default.
• It is borrower’s stake or cushion in the project.
• Lower the LTV lower the risk for bank, higher the margin for
borrower.
15. Internal Ombudsman Scheme has been introduced by the
bank.
• It is as per the RBI directives.
• For smooth resolution of complaints.
• It is a robust customer grievance redressal mechanism.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 8 | P a g e
 16. Cheque presented after business hour should not be paid.
• It would not be treated as payment in due course as per section
10 of N I Act, 1881.
• Bank will not get protection under section 85 of N I Act, 1881.
17. Clayton’s rule is applicable to the closed accounts in case of
change in constitution/death of any partner etc.
• It is as per section 59-61 of Indian contract act 1872.
• Legal heirs will not be responsible for any debit after the death
of constituents/partners; however, any subsequent credit will
reduce the liability of the deceased.
• To fix the liabilities of the legal heirs of deceased constituent.
18. Branch Manger should scrutinize staff accounts
periodically.
• To check any disproportionate credit in the staff accounts.
• To prevent fraud.
• It is one of the Preventive vigilance measures.
19. OTMS process flow has been shifted from branch to LHO.
• To ensure meaningful scrutiny of OTMS alerts.
• To reduce the number of false compliances being done by the
branch.
• To avoid any suspected frauds in the branch.
20. Stamped Debit balance confirmation (COS-48) is taken
from the borrower.
• It is an acknowledgement of debt due.
• Limitation period of time barred document increases.
21. No advance is granted against bank’s own share.
• It is prohibited under section 20 of BR Act 1949.
• Also prohibited under section 34(1) B of SBI Act 1955.
• Tantamount to reduction in own capital.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 9 | P a g e
 22. Safe deposit receipt of branch duplicate keys should be kept
at BM’s hand safe.
• If it is kept in the strong room, branch may not be in a position
to take delivery of the duplicate keys in case of urgent need.
• For the easy access of the receipt, it should be kept at BM’s
hand safe outside the strong room.
23. Customer Relationship Management (CRM) has been
introduced.
• It is a 360-approach concept for existing as well as potential
customer.
• It provides facilities like, product recommendation, complaint
management, data analytics, and lead management for
customers as well as banks.
24. No advance is sanctioned on the Term Deposit of other
banks.
• Issuing bank has a paramount lien on the TDRs/STDRs.
• TDRs/STDRs are not negotiable instruments.
• TDRs/STDRs cannot be assigned in favor of other banks.
25. Nomination facility has been introduced.
• It is available under section 45Z A to F of BR Act 1949.
• For smooth and timely settlement in deceased accounts.
• As per Talwar Committee recommendations on customer
service.
26. RBC is mandatory for all employees.
• It is as per RBI direction.
• It will help them understand basic concept of their assigned role
and responsibility.
• It is a learning and development initiative by the bank.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 10 | P a g e
 27. e-waste management policy has been introduced.
• It is as per the Ministry of Environment and Forests (GOI)
guidelines.
• It is environment friendly initiative and will reduce pollution.
28. No indemnity is required while issuing duplicate term
deposit receipt.
• TDR is not a negotiable instrument.
• It is payable at the same branch.
• Chances of frauds are very less.
29. “JEEVAN PRAMAAN” online digital life certificate has
been rolled out by the banks.
• It is Aadhaar based biometric authentication process.
• Pensioners need not to visit any branch.
• As per GOI direction.https://jeevanpramaan.gov.in
30. e-register has been introduced.
• It is a green initiative of SBI.
• It will boost maker-checker concept.
• Back-office maintenance work will be reduced.
31. YONO- project lotus has been introduced.
• YONO is an acronym for “You Only Need One.” It is India’s
first OMNI channel digital platform.
• Banking & Lifestyle. It is available on Web, Tab and Mobiles.
Available on Android and iPhones.
• To avoid use of multiple application.
• To improve UX (User Experience).

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 11 | P a g e
 32. No loans to be granted to a minor.
• A contract with a minor is void ab-initio under section 11 of
Indian Contract Act, 1872.
• As per section 26 of N I Act 1881, a minor can draw, endorse
and accept a negotiable instrument to bind all parties except
himself.
33. Career Development System (CDS) has been introduced.
• It focuses on the well-being of the employees.
• Career Progression, rewards and incentives are available
under this scheme.
• It is a fair HR initiative of SBI.
34. Frisking is done before entering strong room and while
coming out of currency chest branch.
• It is as per RBI directives.
• To avoid frauds and theft in a currency chest.
• It is a preventive vigilance measure.
35. Green channel counter (GCC) has been introduced.
• It is time saving, safe and convenient for customer.
• Back-office workload like VVR checking, voucher keeping will
be reduced.
• No need to verify signature, date, amount in words and figure
etc., thus reducing the operating level accountability.
• Cost effective and time saving for the bank.
36. Insurance is required for the full value of the goods/stocks.
• Average clause will be applicable, if the full values of
goods/stocks are not insured.
• Borrowers and banks both will be looser in case of claim.
Insurance company will pay a proportionately lower amount of
the insurance.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 12 | P a g e
 37. Green Car Loan scheme has been introduced.
• It is a green/sustainability initiative of SBI.
• To tap the potential available in the Electric Vehicle Business.
38. Mandatory Learning courses have been introduced.
• It is as per RBI directives.
• It is a self-learning initiative for up-skilling of employee.
• It is a learning and development initiative by the bank.
39. Rupees one note is issued by GOI.
• As per Indian Coinage Act.
• No reserve to be maintained for issuance of one rupee note.
• No Guarantee is mentioned in the notes.
40. “All our stamps are cancelled” to be written at the time of
returning a cheque to the customer.
• Bank will be disposed of from any liability in future.
• Customer can re- negotiate the instrument in future.
41. Banks are focusing more to improve UX (User Experience).
• To improve digital convenience, banks are redesigning their
platforms to make transactions faster, simpler, and more
intuitive for users.
• To improve service accuracy, user-friendly interfaces reduce
customer errors and lower the workload on branch staff.
• To improve customer satisfaction, enhanced UX encourages
customers to shift to digital channels, supporting the bank’s
operational efficiency and digital transformation goals.
42. Banker’s cheque more than Rs 20,000/- & Maturity
proceed of TDR Rs20, 000/-are to be paid in the account only or
via account payee cheque only.
• As per Income Tax rules.
• To avoid number of cash related transaction.
• To prevent frauds.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 13 | P a g e
 43. Payee’s consent is required at the time of cancellation of
duplicate demand draft.
• In case of DD, bank is a trustee of the payee.
• To ensure that payee has no claim related to the particular DD.
44. Insurable interest in life insurance is taken into
consideration.
• It protects anything subject to a financial loss.
• Otherwise, insurance company may detach/repudiate its
liability.
45. Realty Gold Loan scheme has been introduced.
• It is for Home Loan customer to meet their margin
requirements.
• To tap the potential available in the Gold Loan business.
• Income Tax Deduction rebate can be claimed by the borrower.
46. Jokhim Jagrukta Diwas (Risk awareness Day) is observed
on 1st September every year.
• It is a preventive vigilance measure.
• To make every employee aware of the types of risks and ways to
minimize the risks.
47. Operations in the Trust account should be verified
carefully.
• Trust accounts are fiduciary in nature.
• In case of any litigation bank will be a party to it.
• Provisions of Trust Deed should be followed meticulously.
48. In case of rephasement of Term Loan consent of guarantor
is obtained.
• As per section 133 of Indian contract Act 1872 any material
change requires consent of a guarantor.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 14 | P a g e
 • As per section 128 of Indian contract Act 1872 liability of a
guarantor is co-extensive with that of a borrower.
• If we do not take consent of guarantor, he will be relieved of his
guarantee.
49. Crossed cheque cannot be paid over the counters.
• Prohibited under section 126 of Negotiable Instrument Act
1881.
• It will not be considered as payment in due course (Section 10
of NI Act).
• The paying banker will not get protection.
50. No Demand Draft payable to bearer can be issued.
• It is prohibited under section 31 of RBI Act 1934.
• Issue of bearer demand drafts is tantamount to currency notes.
51. Instant payment to be made to the beneficiary of a Bank
Guarantee in case of invocation.
• As per RBI directive.
• Banks obligation to pay the amount to the beneficiary is
unconditional and absolute.
• Late payment of BG will tarnish the image of the bank.
52. Assignment of the policy is done with the Insurance
Company.
• To get the benefit of actionable claim under section 3 of
Transfer of Property Act.
• After assignment bank gets a right that can be enforce through a
court of law.
53. “Contents Unknown” should be written in the safe deposit
receipts.
• Banks are not aware of the contents kept for safe deposits.
• To avoid any litigation at the time of delivery by the bank.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 15 | P a g e
 • It should be sealed by the customer with their own seal.
54. Payment of Demand Draft cannot be stopped.
• In case of DD bank becomes trustee of payee.
• Bank has already received the funds in advance, so payment
cannot be stopped.
55. Fresh nomination is advised after the closure of loan
against Insurance policies.
• At the time of assignment all earlier nomination gets cancelled
automatically.
• Bank should advise the borrower to create fresh nomination
after closure of loan.
• It is as per section 38 of Insurance Act 1938.
56. A confirmation letter is required to be sent by post by a
borrower after creation of EM.
• Borrower has deposited the title deeds with an intention of
taking a loan from bank.
• Borrower confirms that the EM is free from any kind of
coercion, compulsion and force.
57. Control Returns are submitted to the Controller.
• To verify that whether the sanction has been done within the
delegation of financial powers of the sanctioning authority or
not.
• It is a control mechanism to monitor the activity of the branches
and to follow I&MA guidelines.
58. POSH “GARIMA” initiative has been introduced in SBI.
• As per the guidelines of “The Sexual Harassment of Women at
Workplace (Prevention, Prohibition and Redressal) Act, 2013.
• To provide a safe, secure and appropriate work environment to
our Women employees.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 16 | P a g e
 • It is a kind of awareness regarding gender equality and
sensitivity.
59. Farmer-oriented inspection is to be focused rather than
Farm-oriented.
• To create a rapport with the farmers.
• To promote the farmers to use latest technology for their
farming activity.
• To guide them to use the Bank’s latest Agricultural and Allied
products available from them.
60. Interest to be paid on delayed payment of collection.
• As per Goiporia Committee recommendation on customer
service.
• It will boost the image of the bank &
• For better customer service.
61. BC & OR has been introduced in place of BCP (Business
continuity plan).
• As per the revised guidelines under BCBS (Basel committee on
banking supervision).
• BC & OR (Business Continuity & Operational Resilience) is
more appropriate and relevant in the present banking
environment.
62. Integration of RADAR scores with that of RFIA is done.
• To ensure that RADAR rectification is done at the operating
level on daily basis.
• It is an opportunity to increase RFIA score.
• It will improve compliance culture at branch level.
63. Data Governance Policy has been introduced.
• Data is the new Oil and is a corporate asset.
• It ensures the proper handling and use of Data.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 17 | P a g e
 • It ensures meticulous compliance and protection of Data.
64. “SANJEEVANI” has been introduced.
• For timely and instant solution of employee’s grievance.
• It is a two – way communication channel.
• It is one of the HR initiatives of SBI.
65. Drop Box facility has been introduced.
• A customer can deposit his/her cheque anytime.
• It is available 24X7.
• Easy & timely settlement of cheque collection.
66. CASA deposits are need of hour.
• It is a low-cost deposit.
• With the increase of CASA our customer base will also increase.
• CASA will help in ALM at Bank level.
67. Job Family concept has been introduced.
• An employee can pursue his career in his area of interest, i.e
Retail, Forex, Agri, HR etc.
• Output of the employee would improve.
• Will create a pool of specialized employee for various verticals.
68. Job Rotation concept has been introduced.
• To avoid any suspected fraud.
• To provide equal opportunity to all staff members to get the
experience of various works in the branch.
• To avoid monotony of work.
69. “SBI ExclusiF” has been introduced.
• It is a premium banking service offered by SBI.
• It offers’ Personalized banking solutions, priority services,
exclusive lifestyle privileges and a dedicated relationship
manager.
• It is meant for Elite and HNI customers.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 18 | P a g e
 70. Cheque crossed to two banks is not paid.
• It is prohibited under section 127 of N I Act, 1872.
• There is no clear mandate.
71. FX-Retail has been introduced.
• It is a web-based platform for FOREX dealing in the USD/INR
currency pair.
• Launched by RBI through CCIL (Clearing Corporation of India
Ltd.)
• Customer can book for value CASH (delivery on the same day),
TOM (delivery on the next forex working day) and SPOT
(delivery on the second forex working day).
72. Fraud to be reported to RBI within 21 days
• RBI mandates fraud reporting within 21 days to ensure early
regulatory action and prevent further loss.
• Timely reporting enhances transparency and strengthens the
banking system.
• Delay attracts penalties and supervisory concerns.
73. RBI has introduced CBDC.
• It is a replacement of physical currency to digital currency.
• It is safe, secure and paper less currency.
• To eradicate black money.
• To promote digital economy.
• It is one of the green initiatives measures.
74. Banks are using Data Analytics for business development.
• It is useful for designing Deposit, Loan and Digital products.
• It is a process of analyzing raw data to find suitable products
for the clients.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 19 | P a g e
 75. Artificial Intelligence (AI) is getting importance in banking.
• AI replaces the task done by humans with the help of computer,
robot coupled with human intelligence.
• It is cost effective, time effective and need of hour.
• It is used in Mobile banking, Chat Bots, Data Collection and
analysis, Risk management, Data security etc. by banks.
76. Block Chain Technology is getting importance in banking.
• It is a distributed ledger.
• Multiple Banks / entities can be connected as nodes of the Block
Chain and can share data with trust.
• KYC / VKYC taken by one Bank / Entity can be used by others
with trust and can avoid multiple efforts.
• Banks will be more secure and faster in Inter Bank Money
Transfer using Block Chain because of the Trust.
77. 5G Network will be helping Banks.
• 5G Network is 20 times faster than 4G and Latency (delay) is
near Zero.
• Transaction authentication using Facial Matching / Voice
recognition, Biometrics can be done very smoothly in 5G to
avoid fraud.
• Augmented Reality / Virtual Reality features of 5G will create a
feeling of being inside the branch without visit.
78. Cloud Migration will be useful for Banks.
• As per Ease 4.0 guidelines of GOI, PSBs will have to fast-track
the migration of their IT systems to secure cloud-based
solutions in line with board approved policies and the
regulatory framework.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 20 | P a g e
 • Bank can improve flexibility, scalability and serve customer
faster by cloud adoption. Banks are expected to cut costs on
maintenance.
• The security features like Infrastructure security, data security,
Application security and Identity Access Manager etc. are taken
care of by cloud service provider.
79. Ease 8.0 directions are going to help Bank.
• The theme of EASE 8.0 is Driving Innovation for Business
Process Re-engineering and customer Excellence.
• It is built around four pillars: Risk & Resilience, Innovation,
Socio-Economic Impact (for Viksit Bharat) and Excellence.
• Ease 8.0 encourage the bank to adopt innovative processes and
technologies.
80. Crypto-Currency has been introduced.
• Crypto/digital/virtual currency, designed to secure monetary
transactions by using cryptography.
• They provide privacy protection, cost-effectiveness and lower
entry barriers which can be used as an alternative to banking
systems.
• Every transaction using crypto currency is transparent,
autonomous and secure.
• Crypto currency is managed by its own network.
• It is eco-friendly as it is paperless.
81. Account Aggregator concept has been introduced by RBI.
• Account Aggregator is a digital platform that enables users to
consolidate their financial information from multiple financial
institutions in one place.
• Introduced by the RBI to facilitate the sharing of financial data
between different financial institutions, such as banks,

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 21 | P a g e
 insurance companies, mutual funds, and other financial
institutions. It is a consent based eco system.
82. Green Banking and Sustainability Initiatives have been
taken by SBI.
• To promote responsible banking and use the lines of credit
extended by such organizations to fund projects that have clear
social or environmental impact, such as affordable housing
projects, renewable energy projects and projects that promote
energy efficient alternatives in real estate.
• Bank intends to issue green, social, sustainability bonds and
uses the proceeds to finance or refinance projects that are
expected to create positive environmental and social impact in
India.
83. Monetary Policy has been framed by RBI.
• The primary objective of a monetary policy is ensuring stability
in prices, ensuring controlled expansion of bank credit and
money supply.
• The central bank uses the monetary policy to maintain a
balance between demand and supply of goods and services.
• Monetary Policy is a set of tools used by central banks of
various countries to regulate the supply and availability of
money.
84. Efficiency ratios of banks are getting importance these
days.
• Efficiency ratios are an important measure of a bank's financial
performance and internal strength.
• They indicate how effectively a bank is using its resources to
generate profits.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 22 | P a g e
 • Some examples of efficiency ratios are Cost to Income Ratio,
Return on Assets, Return on Equity, Net Interest Margin,
Capital Adequacy Ratio etc.
85. Open banking concept has been introduced.
• Open Banking is an innovative financial practice where banks
allow third-party providers to access their customers' financial
information through APIs (Application Programming
Interfaces).
• It allows consumers to share their financial information
securely with other banks, financial institutions, or third-party
providers.
86. NET PROMOTER SCORE is very crucial for any
organization/Bank.
• NPS measures the loyalty of a customer towards his
organization/Bank/Service Provider.
• NPS is a customer loyalty metric that measures customers'
willingness to return for another purchase as well as to make a
recommendation to their family, friends, or colleagues.
• NPS Analysis classifies customers into three types - Promoters,
Passives, and Detractors. Responses are rated on a 0-10 scale.
• Net Promoter Score Analysis survey helps to identify what these
detractor and passive customers expect out of the business.
87. Project Dhruva has been launched.
• Banking made easy with SBI contact centre No. 18001234 &
18002100.
• Services available- Account services, ATM card services,
Complaint lodging & status, Banking product queries, Digital
banking queries, Cheque services etc.
• Some benefits are- Lower call drop, faster connectivity and call
quality, better experience for customers.
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 88. Banks are focusing on Ethics in Marketing.
• Banking is trust between customer and the bank.
• Marketing should not be misleading and manipulative.
• The banker must maintain highest level of ethics in his dealings.
• Ethics includes Trust, Integrity, Honesty, Reliability,
Transparency, No hidden cost etc.
89. Miscellaneous Business is very important for banks.
• To retain and improve business and profitability banks are
undertaking miscellaneous business.
• Advantages: Financial supermarket, one stop shop, no major
outlay of funds, Low service cost, sizeable income earned.
• Banks are taking steps to improve miscellaneous business by
developing relationship banking, creating awareness amongst
customers about their various products and services.
• Sec 6(i) of BR Act- bank can undertake insurance and other
activities.
90. RBI has introduced exposure norms for the bank.
• The concentration risk is avoided.
• Failure of a single advance or advance to a particular group
will not affect the capital stability of bank.
• It will enable availability of credit for all sectors of economy.
• It is a prudential control measure aimed to minimize credit risk
for banks.
91. Data infringement policy has been introduced by the bank.
• Data is the new oil.
• We are custodians of customer’s data, and we also possess lot
of confidential data which should be protected from all kinds of
breaches.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 24 | P a g e
 • Both Data purity and Data loss prevention are to be ensured in
all IT processes and is the objective of IS Policy of the Bank.
92. Services of SBOSS (State Bank Operations Support
Services) has been introduced by the bank for CSP visits.
• To overcome the operational challenges faced by the operating
functionaries.
• SBOSS shall provide manpower, and they will be designated as
“CSP Mitras”.
• CSP Mitra will undertake the monthly visit instead of Branch
officials/BCF (Business Corresponded Facilitators).
93. For car loans up to 20 lakhs, the insurance copy of
subsequent years (after first year) may not be obtained.
• Arrangement letter suitably modified, in order to bind the
borrower in case of failure of Borrower to keep the vehicle
insured.
• As per the statutory requirement, every vehicle on the road must
have insurance and, if insurance is not available, it may lead to
substantial penalty. So, the customer is expected to keep the
vehicle insured.
• Further, the follow-up for insurance policy in subsequent years
requires additional efforts by officials. Most of the borrowers do
not submit it despite the follow-up. As a result, it has become a
perennial issue, in several I&MA reports, and to resolve this
issue bank has approved modifications in operational
instructions.
94. Operations in the CC/OD account of partnership firm on
death of a partner ate stopped.
• On death of a partner, partnership firm stands dissolved.
(Section 42 of partnership act, 1932)

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 25 | P a g e
 • Clayton’s rule will apply as per section 59-61 of Indian contract
act, 1872.
• To crystallize exact liability of the deceased partner as on the
date of his/her death.
• His survivors cannot be made liable for subsequent debits after
the death of the partner. However, any subsequent credit will
extinguish the liability.
• To retain claim over estate of deceased partner.
95. While renewing the Cash Credit limits, Credit summations
are taken into consideration.
• The credit summations in the account indicate the sales/
turnover which are essential to take a decision regarding
continuation of the facility and to fix the quantum of limit to be
granted / renewed and to ensure the end use of the limits
sanctioned.
• It is tool to prevent diversion of funds and ensure end use of
funds. It will obviate chances of over financing / under
financing and ensure fixing of suitable need-based limit.
• It is a check / review mechanism to ensure that all sales are
routed through the cash credit account and put in place
remedial measures, if required.
96. Banks are focusing on DQI (Data Quality Index) error
rectification and minimization.
• It is as per Regulatory guidelines.
• Data must be complete, unique, valid, timely, consistent and
accurate.
• Correct and accurate data is the base for use of AI & data
analytic in banks.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 26 | P a g e
 • Due to wrong and incorrect loan related data bank has to make
provision unnecessarily.
97. Payment banks are playing very important role in banking
sector.
• As per the recommendations of Nachiket Mor committee
payment banks have been set up.
• They are offering banking and financial services to the
unbanked and under banked area.
• Helpful for migrant labour force, low-income household, small
entrepreneur etc.
• Effective alternative to commercial banks, with low value, high
volume transactions with expansion of rural banking and
financial inclusion.
98. ATM card is not issued in MAXGAIN Home Loan account.
• To discourage the use of frequent cash transactions in the home
loan account.
• This facility is for parking the excess funds into the home loan
account to get the interest benefits.
99. SBI has introduced Green Rupee Term deposit.
• To mobilize funds for climate friendly projects.
• With an aim to finance environment –friendly projects.
• It will foster the growth of a green finance ecosystem in India.
100. SBI launched Gyan-Setu Call Centre (040-41431212).
• It is a dedicated call centre for real-time operational support to
our staff members.
• This will enable our employees to use the facility to provide
frictionless services to our customers.
101. SBI Wealth has been introduced.
• SBI Wealth provides specialized investment and advisory
services to high-net-worth clients.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 27 | P a g e
 • It helps the bank increase fee-based income and retain premium
customers.
• This initiative enhances SBI’s competitiveness in the wealth
management segment.
102. SBI ATOOT scheme has been launched by the bank.
• To provide immediate relief to the family of an employee dying
in harness.
• To strengthen our long-term relationship with our employees
and to imbibe in them a sense of belongingness.
• It is a financial support for funeral and other expenses to the
Next of Kin of the deceased employee.
103. Bank has launched New CVE Product: “E-Shield Insta”.
• The product offers two options i.e., Pure Term Insurance and
Term Insurance with Return of Premium.
• No financial and medical documents requirement.
• Available to pre-selected customers on YONO.
104. Key Facts Statement (KFS) for Loans & Advances has been
introduced by RBI.
• Key Facts of a loan agreement between an RE/a group of REs
and a borrower are legally significant and deterministic facts
that satisfy basic information required to assist the borrower in
taking an informed financial decision.
• Key Facts Statement (KFS) is a statement of key facts of a loan
agreement, in simple and easier to understand language,
provided to the borrower in a standardized format.
105. Primary security should be entered in CBS.
• Recording primary security in CBS ensures transparency,
accurate DP calculation, and monitoring of collateral.
• It prevents unauthorized lending against inadequate or
unrecorded security.
• This strengthens control, audit trail, and risk management.
Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 28 | P a g e
 106. Government business should be given importance.
• Government business provides a stable source of low-cost
deposits, fee-based income, and long-term customer
relationships.
• Handling pensions, salaries, taxes, and welfare schemes
enhances SBI’s trust, visibility, and national role.
• It supports financial inclusion and strengthens the bank’s CASA
base and profitability.
107. Non-fund-based business is extended to non-constituents.
• Extending LC/BG facilities to non-customers helps the bank
capture new business opportunities and fee-based income
without immediate fund outflow.
• It enhances market share and builds relationships for future
business migration. Proper due diligence ensures minimal risk
while increasing income.
108. ELECTRONIC WASTE (e-Waste) MANAGEMENT
POLICY has been launched by the bank.
• It ensures proper handling of e-waste with a view of protecting
the environment, reducing pollution by toxic gases / greenhouse
emissions and other non-biodegradable substances generated
through e-waste disposal.
• It should maintain an effective method of managing the process
of data destruction in such a way that Bank’s information is not
made available to any unauthorized person or entity.
109. AGRICULTURE CENTRALIZED PROCESSING
CENTRES (AGRI CPCs) has been introduced by the bank.
• To increase efficiency and reduce TAT in processing through a
dedicated formal processing Centre / support structure for high
value Agri advances above Rs 50 lakhs.

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 • To increase our penetration in investment credit and high value
agriculture segment loans and thereby increase our Agri market
share.
• To increase focus on commercial agriculture-based lending.
110. REVIEW OF SENSITIVE POSITIONS / POSTS is done
by the bank periodically.
• To avoid developing vested interests and to mitigate the
operational risks faced by the bank.
• As per Central Vigilance Commission & RBI guidelines, the
officers appearing in the “Agreed list” and the list of “Doubtful
Integrity” are not to be placed in sensitive positions / posts in
the Bank.
111. Forensic Audit has been introduced by the bank.
• It is an examination of financial statements/ information of
borrowal unit for use as evidence in court.
• It’s an early detection, prevention and regulation of corporate
frauds, Forensic Audit has an imperative role in assisting
detection of frauds.
112. Credit Information Report must be obtained before
takeover.
• A CIR provides the borrower’s credit history, repayment
conduct, and existing liabilities.
• It prevents SBI from taking over weak or stressed accounts and
protects asset quality. It ensures sound lending decisions and
compliance with due-diligence norms.
113. SBI YOUTH FOR INDIA (SBI YFI): FELLOWSHIP
PROGRAMME has been launched by the bank.
• It enables passionate urban youth in the age group of 21-32
years to join hands with rural communities and work on
pragmatic solutions for pressing rural development challenges
under the aegis of reputed NGOs.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 30 | P a g e
 • It is a 13-month flagship programme of SBI Foundation.
114. “NO LIEN CURRENT ACCOUNT” has been introduced
by the bank.
• No Lien Current Account is a source of Zero cost Current
Account.
• It not only helps reduce cost of deposits but also helps improve
Net Interest Income of the Bank.
• Increases CASA Ratio.
• Banks cannot exercise the right to set off in “No Lien Current
Account” for recovery of loan amount/dues.
• Branch will not consider balances of “No Lien Current
Account” as security for any other loan/guarantee that the
customer may avail from the Bank.
115. PRADHAN MANTRI KISAN URJA SURAKSHA EVAM
UTTHAN MAHABHIYAN SCHEME (PM KUSUM) has been
introduced.
• Financing solar or other renewable energy-based power plants
(REPP).
• To encourage farmer to increase their additional source of
income by utilizing their barren and un-cultivable land for solar
or other renewable energy-based power plants.
• Use of barren/, fallow land, pasturelands and Marshlands.
116. “Project LEAP” (Lending Excellence and Automation
Program) has been introduced by the bank.
• It’s an end-to-end digitization of pre and post sanction
processes for Corporate Credit journey.
• It reduces TAT, enhances customer satisfaction and facilitates
operating units for ease of doing business.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 31 | P a g e
 117. Surprise inspections are done in a supervising manner.
• Surprise inspections help detect irregularities and ensure
compliance when staff are unaware of scrutiny.
• They prevent fraud, strengthen internal control, and reinforce
discipline.
• This practice safeguards bank assets and maintains operational
integrity.
118. “JAGRUKTA AWARD” FOR REPORTING OF NEAR
MISS EVENTS has been introduced by the bank.
• To recognize, encourage and reward the contributions of staff
members in prevention/ detection of frauds and “Near Miss
Events”.
• Applicable to all staff members, including regular, part time
and contractual employees in the service of the Bank.
• Nomenclature of the Scheme is changed from “The Alertness
Award” to “Jagrukta Award”.
119. LC limit is not added to fund-based limit.
• LC is a non-fund-based facility and creates a contingent
liability, not immediate fund usage.
• Keeping it separate ensures correct working capital assessment
and risk monitoring.
• It avoids over-financing and complies with credit policy norms.
120. SARVOTTAM (NON-CALLABLE) TERM DEPOSIT
(NCD) has been launched by the bank.
• Premature Withdrawal not allowed, except in some cases.
• To book Bulk deposit business of Rs. 1.01 crore and above.
• Retail (NCD-R)- amount from Rs 1.01 crore to less than Rs 3.00
crore.

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 • Bulk (NCD-B)- amount minimum Rs 3.00 crore to maximum no
upper cap.
121. Formation of “Green Club” has been introduced by the
bank.
• It will help in reducing the carbon footprints of internal
operations.
• To engage with various stakeholders to adopt and participate in
eco-friendly and sustainable activities/projects for a Greener
and Cleaner Planet.
122. Irregularity reports should be submitted to the Controlling
Authority.
• It will enable the controllers to have an overview of the loan
accounts.
• Prompt corrective action or remedial action can be advised to
regularize the account.
• To prevent the account slipping into NPA.
123. SBI Privilege loan has been introduced.
• It is meant for employees of central/state government /
PSBs/PSUs with pensionable service.
• Lower EMI would need to be paid during post-retirement term.
• Extended repayment up to age of 75 years.
• To tap the potential of Home Loan Portfolio.
124. RBI has put in place a system for international settlements
in Indian Rupee (INR).
• To promote the growth of global trade and increase the interest
of the global trading community in INR.
• To arrest sinking of rupee against dollar.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 33 | P a g e
 125. The recital recorded in the Title Deeds register should not
be signed by the mortgagor for the equitable mortgage created by
him.
• The mortgager may contend later in the court that the mortgage
is a registered mortgage, and no proper stamp duty has been
paid.
• Not registered with Registrar of Assurance (ROA).
• Bank may lose the right over the property as a mortgagee.
126. Noting and protesting is a must in case of bill of exchange
but not in case of cheques.
• U/S 99 & 100 of NI Act, noting and protesting creates and
evidence that the bill has been dishonored for non-payment.
• It is conclusive evidence by the courts, completed through a
notary public.
• In case of cheque, the cheque return memo enclosed by the bank
is a conclusive proof of dishonor.
127. A currency note is not a promissory note.
• Currency notes are issued payable to bearer.
• Promissory note cannot be issued as payable to bearer u/s 31 of
RBI Act.
128. When both duplicate draft and original draft presented for
payment simultaneously, only the duplicate is paid.
• Duplicate draft is issued after confirmation of non-payment of
original draft and after taking indemnity bond.
• Once the duplicate draft is issued status of original draft gets
exhausted.
• Bank is liable to pay the duplicate draft only.
129. Wire transfer transactions have increased.
• It does not involve actual movement of currency.

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 • It is used for transactions between one country to another
country.
• It is fast, rapid and secure method of transferring funds across
the globe.
130. Banker’s lien is an implied pledge.
• As per u/s 171 of Indian Contract Act, a banker’s lien is a
general lien.
• Banker has the right to sell the goods and securities under its
possession under lien, therefore, it is called implied pledge.
131. Right of set-off is also available in the name of guarantors.
• As per section 128 of Indian Contract Act 1872, the liability of a
guarantor is co-extensive with that of the principal debtor.
• Hence, after giving due notice, bank can exercise its right of
lien or right of set-off against the guarantor as well.
132. Right of set-off is not available in case of safe custody.
• It is available when the relationship between the bank and
customer is that of debtor and creditor only.
• Under safe custody, the relationship is of bailee and bailer;
hence right of set-off cannot be exercised.
133. In case of garnishee order and attachment order, the latter
one gets the preference.
• The garnishee order is related with recovery of private dues.
• The attachment order is related with government dues.
134. A minor is not eligible for locker.
• As per section 11 of Indian Contract Act, any contract with the
minor is void ab-initio.
• In case of locker, the lease terms will not be binding on the
minor.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 35 | P a g e
 135. Memorandum of Association and Articles of Association
both are very important documents for any company.
• The purpose of availing credit facility is mentioned in the
Memorandum of Association.
• Borrowing powers of the board of directors is mentioned in the
Articles of Association.
136. HUF cannot become partner in a partnership firm.
• As per Supreme Court judgement in the year 1998.
• HUF runs the family business, and no outsider is permitted to
be a party to family business.
137. Office Order is not required to form a Quality Circle.
• Q.C. initiative comes from the staff members themselves.
• Q.C. is formed by branch staff members in order to examine
their work-related problems and find out the solution.
138. Equitable mortgage is given more focus than other
mortgage.
• EM is created by following a simple method of deposit of title
deeds at notified centre.
• It doesn’t require any registration, and it is cost effective.
• Mortgage in defined u/s 58 of Transfer of Property Act.
139. DSCR is given more focus than Current Ratio while giving
Term Loans.
• DSCR indicates that adequate cash accrual is available to
repay the Term Loan. It helps us to find out long term solvency
of the firm.
• Current Ratio indicates the liquidity position of a firm in the
short run i.e. for one year.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 36 | P a g e
 140. Banks do not sanction against partly paid shares.
• If the shareholder fails to deposit the remaining amount, the
bank may be required to deposit the said amount.
• The liability of the shareholder continues to the extent of the
unpaid amount.
• In case of nonpayment of full amount partly paid share may be
forfeited by the company.
• In the event of forfeiture bank will lose its money.
141. No forex transaction takes place on Saturday.
• All the international foreign exchange markets are closed on
Saturday across the globe.
• Hedging risks will be more, if bank takes forex transactions on
Saturday.
• Prohibited under RBI/FEDAI guidelines.
• It is as per international standards.
142. “R” Returns is being closely monitored by RBI.
• It is tool available to RBI to work out balance of payment
position.
• Through this return, RBI monitors the foreign exchange
transactions of a banking entity.
143. USGAAP concept has been adopted by the banks.
• It is an accounting practice which is accepted across the globe.
• It would help a bank to attract global business on the strength
of its own.
144. Tier-II capital fund cannot be more than Tier-I capital
fund.
• Tier-I capital is the actual capital of a company like paid up
capital and reserve. Banks can depend on these funds fully to
meet the sudden losses.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 37 | P a g e
 • Tier-II capital are temporary in nature like revaluation reserve,
subordinated debts, fluctuation reserve etc. Banks cannot
depend on such funds completely.
145. RBI has introduced Prompt Corrective Action (PCA).
• PCA indicates the financial position of a bank like profitability,
NPA, Return on Assets etc.
• It helps RBI to take immediate corrective action.
146. Financial Intelligence Unit (FIU) has been set up by
Government.
• To track and curb money laundering offences.
• It will ensure maintenance of suspicious and high value
transactions for money laundering and financing of terrorist
activities.
147. Banking has been declared a public utility service by the
Government.
• Central government has declared banking industry as a public
utility under Industrial Disputes Act 1947.
• To ensure smooth functioning of banking services and service
delivery of public.
148. RTI Act 2005 has been implemented by Government of
India.
• To ensure right to information is available to citizens of India.
• To ensure transparency and accountability of the public
authorities including the banking system.
149. Positive Pay System has been introduced.
• For reconfirming key details of large value cheques by issuer.
• To stop encashment of fraudulent cheque.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 38 | P a g e
 150. SIM binding in YONO has been introduced.
• It will work on those devices which have SIM of mobile numbers
registered with the bank.
• It provides enhanced security to its customers.
• It allows only one user per device with a registered mobile
number.
• It makes online banking more secure than ever.
• It is as per RBI directive.
151. Beneficial owner concept has been introduced.
• To ensure who owns or controls a client and or the person or
the entity on whose behalf the transactions are being done.
• As per section 9(1A) of PMLA.
• To protect the banking system as against money laundering,
terror financing etc.
152. Bank has introduced Project Utkarsh.
• It is a mass awareness programme to address customer’s pain
point areas.
• To impart knowledge and provide circular instructions to the
operating employees.
153. High Current Ratio should not be appreciated.
• Rotation of inventor/stock may not be happening.
• There could be unreasonable delay in realization of sundry
debtors.
• Unit may not be functioning properly.
154. PAN card of student & parent is a must for all educational
loans.
• To know the history of the proposed borrower and to track the
proposed borrower in future also.
• To mitigate the risk of NPA in education loan.

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 155. CERSAI has been introduced.
• To enable enforcement of SARFAESI Act provisions in a better
and stringent way.
• To reduce the possibility of multiple financing on or against the
same security.
156. Staff suggestion scheme has been introduced.
• To improve the customer service and systems & procedures of
the bank and to motivate staff to think on creative lines.
• For the progress & development of the bank.
157. Revival letters are to be obtained from the borrowers.
• As per Indian Limitation Act 1963, to prevent a document
become time-barred, revival letter is taken.
• To enable banks to proceed legally against a defaulting
borrower.
158. CRM & ORM introduced in RFIA.
• Credit Risk Management and Operational Risk Management in
Risk-Focused Internal Audit help evaluate credit exposure and
operational controls more effectively.
• This approach strengthens early-warning systems and reduces
potential losses.
• It improves risk culture and compliance.
159. “NPS VATSALYA-AN NPS SCHEME FOR MINOR” has
been introduced.
• Any minor who is a Citizen of India is eligible for opening
account under the scheme, until attaining the age of eighteen
years.
• It is a contributory pension scheme exclusively for minors with
an objective to create a pensioned society and to encourage
empowerment of children.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 40 | P a g e
 160. BUSINESS RULE ENGINE (BRE) has been introduced.
• For SME Revamp and to have a relook at all the processes and
formats in line with emerging market conditions.
• The revised process flow / loan journey involves credit process
from sourcing stage to Sanction with the objective of reducing
TAT of processing of such proposals thereby increasing the
productivity of processing officers.
161. SBI Loan Policy provides broad framework.
• The loan policy guides loan appraisal, sanctioning, monitoring,
and recovery to maintain asset quality.
• It ensures uniformity, compliance with RBI norms, and prudent
lending.
• This framework minimizes risk and supports sustainable
growth.
162. In gold loan, DP note, and pledge obtained.
• For gold loans, the bank obtains pledge of ornaments and a
demand promissory note to secure repayment.
• This ensures legal control over the assets until the loan is
cleared.
• It minimizes credit risk and protects the bank’s interest.
163. Relationship management enables long-term business.
• Relationship management focuses on understanding customer
needs and providing appropriate banking solutions.
• It enhances customer loyalty, satisfaction, and cross-selling
opportunities.
• This leads to sustainable business growth and higher
profitability.
• It minimizes credit risk and protects the bank’s interest.
164. Calling to customers by branches/CPCs/other
establishments through centralized number series has been
introduced by the bank.
• Calling through centralized number series (1600108333 and
1409768333) has been made live for all onboarded/linked
mobile numbers.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 41 | P a g e
 • All operating functionaries are instructed to undertake
transactional/service calls only using 1600108333 and
undertake promotional voice calls only through 1409768333,
for calling to the customers.
• All calls would be recorded for monitoring purposes.
165. “Grahak Vela” meeting, modification in the existing
parameters have been introduced by the bank.
• To align them in line with the DFS framework.
• This will ensure timely and quality disposal of grievances,
deduce pendency, enhance customer satisfaction and also help
to improve our standing in DFS rankings.
166. A new health insurance product “Alpha Senior” has been
launched by the bank.
• Hassle free product, Entry age: Minimum- 56 years and
Maximum-No Limit.
• No medical checkup till age of 70 years for sum insured of 10
lakhs.
• Restoration of sum insured after each claim for unlimited times
during policy period.
• There are three variants available: Alpha Senior-
Select/Prime/Ultima.
167. A new SBI Life insurance product “Smart Money Back
Plus” has been launched by the bank.
• It is an individual, non-linked, participating, life insurance
savings product.
• The plan provides periodic payouts during the policy term while
ensuring comprehensive life insurance coverage.
• Total benefit of 130% of the sum assured over the policy term
along with bonuses payable on maturity.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 42 | P a g e
 168. SBI STAR (Staff Talent Acknowledgement & Recognition)
Awards has been introduced by the bank.
• It is in line with bank’s commitment to promote holistic
employee engagement, well-being and pride in the organization.
• To strengthen the bond between employees and the
organization.
169. Palladium Current Account (Monthly Average Balance Rs
25,00,000/-) variant has been launched by the bank.
• To meet the evolving needs of premium Current Account
Customers.
• To strengthen our competitive position in the market.
• It will broaden basket of product offerings, improve our
competitiveness and support the marketing efforts for customer
acquisition.
170. A new STOP reason “Suspected Money Mule” has been
enabled in CBS at CIF Level.
• To facilitate the branches to impose partial freeze at CIF level
and to create an identifier for “Suspected Money Mule”.
• If the EDD is confirmed as negative, operating functionaries
may impose partial freeze with reason “Suspected Money
Mule”.
171. A dashboard for Banker’s Cheque payment to third parties
for monitoring by controllers has been introduced by the bank.
• To strengthen oversight by controller on Banker’s Cheque
payment to third parties.
• For better surveillance and monitoring of outlier transactions.
• If the Banker’s Cheque payment to third parties is not found in
order, then further scrutiny needs to be done.

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 172. Separate passbook with unique colour coding for senior
citizens, persons with disability (PwDs) and farmers have been
introduced by the bank. (Senior Citizen-Light Golden, PwDs-
Purple, Farmers with KCC with our bank-Green.)
• To enhance customer experience and provide inclusive and
dignified banking services to all segments of our clientele.
• To facilitate quick identification of such customers at branches
to extend priority services.
• To strengthen bank’s image as a socially responsible and
inclusive institution, while enhancing customer convenience and
care.
173. A new SBI Life insurance product “Smart Shield Plus” has
been launched by the bank.
• It is an individual, non-linked, non-participating, life insurance
pure risk product.
• To provide protection cover with benefits crafted for growing
needs of the customers at an affordable rate.
• It also offers option of life cover up to 100 years of age.
• It also offers enhanced protection with optional rider like
accident benefit rider.
174. Bank has introduced Policy on “Digitization of critical
records/documents”.
• The policy aims at conversion of physical
documents/copies/records (viz. memos, memorandums, notes,
office orders, letters, minutes or meetings, correspondence, etc.)
into electronic/digital format.
• To ensure storing and retrieval of records/documents by
branches/offices of the bank are facilitated in a secured and
authorized manner.

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 175. SBI ASMITA-SME loan for women entrepreneur has been
launched by the bank.
• To pass on all the benefits specific to women entrepreneurs, to
tap the new business opportunities.
• To meet the funding requirement of women entrepreneurs, the
product is designed to meet the financing needs of units
operated by women entrepreneur.
• All the Green field/Brown field loan applications above Rs 10
lacs to Rs 5 crore will be eligible under this scheme.
176. SME DIGI-SUGAM digital product has been launched by
the bank.
• To enable the bank to extend digital finance to MSME units.
• The product is cash flow-based OD facility for existing to bank
(ETB) customers where lending is done through YONO-
Business app and the maximum limit under the product is Rs 50
lacs.
177. SBI General “Student Travelsure-Group” product has been
launched by bank.
• To protect students throughout their education journey
overseas.
• The policy can be bought by students aged 15-40 years who are
SBI account holders or education loan customers pursuing
studies abroad.
• This policy covers Medical Expenses, Travel protection and
Academic & Visa support.
178. RFIA, paperless reporting process for all category of
branches has been introduced by the bank.
• As part of our Bank’s Go-Green initiative and in alignment with
the ESG (Environmental, Social and Governance) objectives set
by the organization.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 45 | P a g e
 • For adopting sustainable audit practices, this initiative not only
supports our commitment towards environmental sustainability
but also enhances operational efficiency, easy traceability, audit
trail and data security in audit reporting.
179. “SBI TRIBUTE” Scheme has been launched by the bank.
• To provide immediate and holistic support for the family on
death of the pensioner/retiree.
• To institutionalize a humane and empathetic response
mechanism for the families of deceased retired employee.
• A one-time lump sum amount of Rs 30,000/- will be provided as
a gesture of gratitude and support, preferably within 72 hours
of receiving intimation of death.
180. SVAYAM SIDDHA SARAL & NARI SHAKTI products
have been launched by the bank.
• To finance individual members of mature SHGs promoted by
DAY-NRLM for sustainable livelihoods through MSME & AGRI
activities.
• Svayam Siddha Saral: Minimum Rs 80,000/- and Maximum Rs
5,00,000/-.
• Nari Shakti: Minimum Rs 80,000/- and Maximum Rs
10,00,000/-.
181. AASHAY HOME LOAN(REHBU) product has been
launched by the bank.
• To provide home loans to EWS & LIG individuals of urban
areas with regular but minimal or nil documented source of
income.
• Individuals such as: small traders, shopkeepers, skilled and
semi-skilled workers/artisans, members of SHGs, beneficiaries
of PM SAVNidhi, PM Vishwakarma, PMMY, SUI etc.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 46 | P a g e
 • Under this scheme home loan up to Rs 20.00 lacs will be
provided to EWS/LIG individuals having income up to Rs 6.00
lacs in urban areas.
182. CRECHE allowance for female employees has been
launched by the bank.
• All female employee having dependent children including step
and adopted child up to the age of 5 years are eligible.
• This allowance will also be applicable to single male employee
(Parent) having children up to the age of 5 years.
183. RM assisted journey for opening Current Account phase-I
of Tab Banking has been rolled out by the bank.
• To enhance efficiency and reduce dependency on physical
forms, the current account opening process carried out by RM-
TxBs is being digitalized.
• To enable RM-TxBs to fill in the account opening form (AOF)
and submit documents digitally via Tablets, eliminating the need
for physical submission at TB Hubs/Branches.
184. “MAHAK” (Model for audit health assessment and
knowledge) has been introduced by the bank.
• To arrive at the overall audit health of the Bank/Circle by
aggregating the scores under different audit streams applicable
to the bank.
• To provide independent assurance to the board of directors &
senior management of the bank on quality and effectiveness of
the internal control, risk management, governance, systems and
processes.
185. “Branch One View” portal-phase I dashboard has been
launched by the bank.
• To strengthen the internal controls and enhance visibility of
audit performance across the Bank within the Integrated Audit

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 47 | P a g e
 Platform (IAP) available at IAD website.
(https://iap.statebanktimes.in/bov/)
• This dashboard serves as one-stop interface for all stakeholders
to get a consolidated view of a branch’s audit profile and
related risk indicators.
186. Transfer of ownership of OTMS (offsite transaction
monitoring system) from IAD (internal audit department) to
PRMD (proactive risk management department) has been done
by the bank.
• Migrated activities of OTMS are the functions of second line of
Défence.
• To strengthen OTMS framework & to comply with the RBI’s
master directions of fraud risk management and bank’s fraud
risk management policy.
187. “PM-Vidyalaxmi” education loan product has been
launched by the bank.
• To provide collateral free, guarantee free education loans to
students securing admission in QHEI (quality higher education
institutions) identified by the Department of Higher Education)
(DoHE).
• In compliance to the guidelines issued by the Union Cabinet on
6th November 2024, regarding “PM-Vidyalaxmi scheme.
188. “Method of calculation of interest on deposits” display/
disclosure should be displayed at the branches.
• It is as per the Supervisory Evaluation instructions of RBI that
“Appropriate disclosure regarding service charges, citizen
charter, forex rates, method of calculation of interest rates on
deposits, KYC, currency notes and RBI-Integrated Ombudsman
(RBI-IO) scheme should be displayed at the branches.
• To confirm availability of prescribed displays/disclosures at the
branches, all controllers must check and comment on the same
Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 48 | P a g e
 in their reports invariably during their periodic visits to the
branches.
189. “SBI ONE TOUCH WEARABLES” has been launched by
the bank.
• To cater to the evolving needs of customers and to provide
better customer experience bank has introduced Wearable Debit
Cards “SBI One Touch” of Rupay Network.
• “SBI ONE TOUCH WEARABLES” enable contactless
payments through embedded Near Field Communication (NFC)
chips allowing users to tap the Wearable at compatible terminal
to complete the transactions securely and swiftly.
• Wearable is linked to the customer’s account and can be issued
in the form of NFC sticker or Key Chain.
190. SAMPURNA “SB”- Savings bank account variants for
(TASC) Trusts, Associations, Societies and Clubs have been
introduced by the bank.
• To attract TASC segment customers bank has introduced
variants of Savings Bank products with added features of
transaction banking solutions such as e-collection, Bulk
payments, Payment Gatway/Aggregation Solution, POS/QR,
Cash collection facility at concessional rates.
• Three variants are available like, Sampurna-
Gold/Diamond/Platinum.
191. SBFTC- State Bank Foreign Travel Cards load/reload
through YONO Lite application has been introduced by the bank.
• To enhance customer convenience and provide options to
customers to load/reload SB FTC cards through digital
channels.
• To enable the customer to load/reloan SBFTC (Single and
Multi-Currency Visa Card) through YONO lite application.
• It is also available through Retail Internet Banking (RINB).
Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 49 | P a g e
 192. “Mentorship Programme” for meeting with dis-satisfied
customers has been introduced by the bank.
• To emphasize the importance of customer satisfaction- a key
differentiator in an intensively competitive market.
• Mentorship will be introduced at Circles and 50 top branches of
the circles receiving highest number of complaints to be allotted
to DGM posted at the circle including DGM posted at LHO for
mentoring.
193. CVE: SBI Life- Smart Future Star & Smart Platina Young
Achiever products have been launched by the bank.
• To provide risk cover on the life of the child.
• In case of death or accidental total permanent disability of the
proposer during the premium payment term, provided the policy
is in-force, future premiums payable (if any) under the policies
will be waived off and the policies will continue as in-force
policies.
194. Treatment of “Mandatory Leave” under vacation policy as
“Special Leave has been introduced by the bank.
• To ensure that no impact on usual leave entitlement of the
employees /officer posted in “sensitive position or areas of
operation” should be affected.
• Such period of leave shall not be deducted from employee’s
available balance of Privilege Leave, or any other leave.
195. SMEBU: “FINANCE TO SOLAR VENDORS” new loan
product has been launched by the bank.
• To achieve net-zero emissions by 2070 as announced at the 26th
Conference of the Parties (COP26) in November 2021.
• To provide effective credit linkage Small and Medium Solar
Vendors and capture the emerging business opportunities.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 50 | P a g e
 • To finance the Working Capital needs of Solar Vendor engaged
in setting up of residential and commercial Solar Power
Project.
196. SBI General: “Arogya Smart” product has been launched
by the bank.
• To provide policy options as individual and family floater with
any relationship.
• It covers Inpatient Hospitalization, AYUSH Treatment and
Domiciliary Hospitalization.
197. “DIGITAL CRRENT ACCOUNT” product has been
introduced by the bank.
• It will make our product quite competitive and enable the
marketing teams to garner CA business effectively.
• To align with vision of National Leadership in digital
transformation.
• The prominent feature of the variant is “No Cash Deposit”
permitted in the account. Cash withdrawal is permitted.
198. Restriction of number of times CIF amendments can be
carried out in a month has been imposed by the RBI/bank.
• To ensure customer data is entered in a one go accurately.
• To restrict inadvertent amendments in CIF.
• To discourage the operating functionaries from carrying out
CIF amendments without following the due procedure.
• Amendments in a CIF will be allowed only 3 times in a calendar
year month.
199. Walk-in Customer CIF (WCIF) functionality has been
rolled out by the bank.
• To ensure compliance of the Bank’s Policy on KYC, AML and
CFT measures.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 51 | P a g e
 • In order to develop adequate mechanism to identify walk-in
customers doing frequent transactions, a module of Walk-in
Customer CIF (WCIF) has been introduced.
200. New & Revamped Agri Loan Application Forms (AG-LAF)
in English and Hindi have been introduced by the bank.
• To streamline and simplify the loan application process for our
customers as well as Bank users.
• These new forms have been designed with customer
convenience in mind, reducing the time required to complete
applications, improving clarity, and ensuring all necessary
information is captured efficiently.
201. “SME QUEST”- New Helpdesk/Suggestion Portal has been
launched by the bank.
• SME Quest is a dedicated helpdesk portal designed and
developed by SMEBU, wherein operating functionaries (RM
SMEs, CSOs and other functionaries in SME branches, SMECs,
RACCs or any other Branch/Administrative office viz.
RBO/AO/LHO) can raise their query related to SME products
and process or can give suggestion for making product more
attractive/change in existing processes etc.
• The link can be accessed through the URL
https://smequestapp.bank.sbi/smequest/homePage .
202. Online “Self-Audit” module under RFIA-OARPS (online
audit report processing system) has been introduced by the bank.
• To strengthen the compliance culture across the bank.
• To align Self-Audit exercise with RFIA methodology for a
robust internal control environment.
203. “SBI Patrons” Term deposit scheme for Super Senior
Citizens has been introduced by the bank.
• To strengthen the relationship with customers attaining the age
of 80 years or more.
Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 52 | P a g e
 • Under this scheme super senior citizens will be offered
additional interest rate of 10bps above the card rates applicable
for senior citizens.
204. “HAR GHAR LAKHPATI” Recurring Deposit Scheme has
been introduced by the bank.
• To provide customized RD product to customers enabling them
to become “Lakhpati” by accumulation of Rs 1.00 lakh (Rupees
One lakh) or more by depositing small savings every month.
• All resident individuals can open an account Singly or Jointly.
Minor can open account alone (above 10 years of age and can
sign legibly) else with his/her parents/legal guardians.
205. SPARK-SBI Platform for Adaptive Reskilling and
Knowledge has been introduced by the bank.
• It will henceforth be a single source of learning for all the
employees with exciting features such as personalized learning
pathways, integration with learning content of Top-level
institutes & Course aggregators, gamified content, assessment
of skill gaps and competency building, rewards and recognition.
• To enhance employee’s knowledge and competence.
206. New SOP regarding Nomination Rules has been introduced
by the bank w.e.f. 01.11.2025.
• To align with recent changes in The Banking Companies
(Nomination) Rules, 2025 and as per the RBI Directions,2025.
• To provide the facility of Nomination on all deposit accounts,
safe deposit locker/safe custody article and deposits held in the
name of sole proprietary concern through Successive or
Simultaneous mode.
207. Bank gives importance to CICs (Credit Information
Companies) report.
• CICs provide credit history of the proposed borrower, like past
repayment record, default history etc.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 53 | P a g e
 • CIC helps banks to take an informed credit decision based on
the borrowers past track record.
208. Banks are focusing more to improve CX (Customer
Experience).
• To improve service quality across touchpoints, banks are
ensuring consistent and seamless delivery through branches,
ATMs, contact centres, and digital channels.
• To improve customer trust and loyalty, personalized solutions
and faster redressal mechanisms are being prioritized.
• To improve overall customer engagement, a strong CX
framework helps the bank retain customers, stay competitive,
and achieve sustainable business growth.
209. A New campaign on Quality Assurance “Uday” during FY
2025-26 have been launched by the bank.
• To improve the effectiveness of operations and compliance
culture of operating units.
• To monitor the effectiveness of RFIA at the Value Statement
Level, instead of Module level.
210. Project “SARAL” (OPR-Operations Process
Reengineering) has been launched by respected Chairman Sir.
• To reimagine and redesign the retail operations processes of the
bank within the guiding principles of “Consistency, Productivity
and Resilience”.
• To simplify, automate, centralize and outsource various
operational activities of the Bank.
• To identify pain points from the operational perspective.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 54 | P a g e
 FOR & AGAINST

1. Use of social media and its implications.

For
• It has become an integral part of our lives now.
• It has facilitated a lot in reshaping communication industry and
redefining the ways in which we communicate and express
ourselves.

Against

• It may cause data leakage and breach of privacy of its users.

• Both real and fake information to be found via social content.
People can find fake news lay out as real.
• Increase in the usage of Smartphone and social media leads to
mental distractions, self-injurious behavior and suicidal
tendency especially among the youth.
2. Use of Crypto-Currency and its implications.
For
• They provide privacy protection, cost-effectiveness and lower
entry barriers which can be used as an alternative to banking
systems.
• Crypto currency is transparent, autonomous and secure.
• Crypto currency is managed by its own network.
• It is eco-friendly as it is paperless.

Against

• There is no legal/formal entity or a central issuer who issues

and regulates them in India.
• Most people are not aware of how to use it and hence become
vulnerable to hacking.
Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 55 | P a g e
 • Denounced in many countries because of their use in grey and
black markets.
3. Use of Artificial Intelligence (AI) and its implication.
For
• AI replaces the task done by humans with the help of computer,
robot coupled with human intelligence.
• It is cost effective; time saving and need of the hour.
• It is used in Mobile banking, Chat Bots, Data Collection and
analysis, Risk management, Data security etc. by banks.

Against

• It might lead to loss of jobs across the sectors.

• It depends on correctness of Data, if Data is insufficient or
wrong than the interpretation will also go wrong.
• Chances of Data theft and Data manipulations are high.
4. CRR should be abolished.
For
• RBI does not pay any interest on balance of the CRR.
• CRR is an idle reserve.
• Can be utilized by banks in other profitable avenues.
Against

• CRR should continue so that a bank never run short of funds

and has to refuse a customer’s withdrawal.
• To protect public money in case of untoward incidents.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 56 | P a g e
 5. Use of CDS and its importance.
For
• It focuses on the well-being of the employees.
• Career Progression, rewards and incentives are available
under this sachem.
• It is a fair HR initiative of SBI.

Against

• Mostly based on the system driven Data, true performance of an

employee may not be reflected correctly.
• It creates disparity between employees.
• Data manipulation in the system is also possible.
6. GST system is good for the country.
For
• It is as per the international standards.
• Helpful in tax collection.
• It prevents tax evasion.

Against

• It creates dispute between Centre and State regarding sharing

of the collected tax.
• GST process is complex.
7. All nationalized banks should be privatized.
For
• Due to competition among all private bank’s customer service
will improve.
• Profitability will also improve due to survival factor.

Against

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 57 | P a g e
 • Under privileged section of customers may be deprived of the
banking services, due to cost effectiveness of the private banks.
• Job security will be always at stake.
• Welfare schemes of the government may face hindrance.
8. Priority Sector Lending should be stopped.
For
• PSL assets generate lesser income in comparison to that of Non
PSL assets.
• Chances of assets becoming NPA are high in PSL.

Against

• PSL provides financial assistance to the under privileged

masses, weaker section and low- & medium-income range
customers.
• For the betterment of Indian Economy PSL is a must.
• India is a social welfare state.
9. Number of BC/CSPs should be increased.
For
• To fulfill purpose of Financial Inclusion Objectives.
• To de-congest the branches for quality services.
• It is customer-friendly, cost effective and suitable for under
privileged and weaker section and low- & medium-income
range customers, especially in rural areas.

Against

• Bank has less control over BC/CSP due to remoteness of outlets.

• Difficult to ensure the quality of customer service being
rendered by the outlets.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 58 | P a g e
 • Brand image of SBI may be jeopardized in case of deficient
customer service provided by any BC/CSP.
10. Government should focus more on mergers and
acquisitions.
For
• It is as per international standards. To compete with the
international players.
• Big banks will have sizeable capital and chances of failure will
be less.
Against
• Big banks will have operational and HR issues.
• In case of a single failure, economy will suffer huge setback.
• Concentration risk will be increased.
11. Number of New banks should be increased.
For
• Customized products and services will be available to the
customers.
• To tap the potential of banking business opportunity in the
country.

Against

• Cut-throat competition will increase.

• Monitoring of banks will be cumbersome for the regulators.
• Small and weak banks would not survive.
12. Prompt corrective action (PCA) should be imposed.
For
• As per RBI directive, PCA will speed up the recovery process
and NPA will be reduced.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 59 | P a g e
 • To protect the public money and to improve the financial health
of the bank.

Against

• Bank will experience reputational risk with restriction on

dividend, branch expansion, lending, accepting deposits etc.
• Investors or stakeholders may be at loss.
13. Variable pay scheme should be implemented in banks.
For
• The better you perform, the more you get.
• It will be a motivation for the hardworking, laborious and
performing employee.

Against

• Will bring disparity among the employees.

• Will create various HR and IR issues.
• Morale of an average employee will be affected.
14. Outsourcing should be promoted in banks.
For
• It is cost effective, latest and institutional friendly.
• It is also time saving and customer friendly.
• Specialized, technical and professional services are available at
a lower cost.

Against

• It causes loss of permanent job.

• It is not an employee friendly initiative.
• Sometimes it may bring reputational loss to the bank due to lack
of integrity and honesty of outsourcing agency/person.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 60 | P a g e
 15. Vacation Policy should be implemented effectively.
For
• It improves the efficiency of the staff members. It will improve
the work-life balance of an employee.
• To avert frauds committed by the staff members positioned at
sensitive posts.
• It is as per RBI directives. It is also a preventive vigilance
measure.

Against

• Customer service will be adversely affected.

• Pending work will increase.
• Leave may be utilized for some other purpose in tranche.
16. Bank should implement Dress Code for its employee.
For
• It is a step toward following best practices in business etiquette
and professionalism.
• In tune with the industry practice.
• It will improve employee’s attitude, confidence and manners.

Against

• Focus will more on attire rather than attitude.

• Will bring disparity among the employees.
• Will create various HR and IR issues.
17. Role Base Certification (RBC) should be promoted.
For
• It is as per RBI directive.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 61 | P a g e
 • It will help staff to understand basic concept of their assigned
role and responsibility.
• It is a learning and development initiative by the bank.
Against

• Sometimes Role Base Certification may not be related to the

desk work.
• Sometimes Role Base Certification may not give solutions for
the problem practically being faced by the operating employee.
• It is time consuming and expensive on the part of the bank.
18. Performance linked incentive should be stopped.
For
• Potential and opportunity can’t be equal for the all-staff
members to showcase their performance.
• May bring disparity among the employees.
• May create various HR and IR issues.

Against

• Productivity and performance will be improved.

• PLI works as a motivational tool.
• In tune with the industry culture.
19. Bank should close its loss-making branches.
For
• To improve profitability of the bank.
• Manpower may be utilized in other profit-making
establishments.
• To reduce operational and overhead costs.

Against

• It will adversely affect customer service and customer trust.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 62 | P a g e
 • Bank may lose its market share.
• Local people of those areas will be deprived of banking
services.
• Rather than closing the loss-making branches, bank should
devise some strategies to make it profitable one.
20. One and same currency should be used by all the countries.
For
• Will be helpful in global trade and reconciliations.
• Settlement of payment will be easier and smoother.

Against

• Different countries have different economic background,

potential and resources.
• Will create disparity among countries.
• May not be acceptable to all countries.
21. Banks are focusing on DQI (Data Quality Index) error
rectification and minimization.
For
• It is as per Regulatory guidelines.
• Data must be complete, unique, valid, timely, consistent and
accurate.
• Correct and accurate data is the base for use of AI & data
analytic in banks.
• Due to wrong and incorrect loan related data bank has to make
provision unnecessarily.

Against

• Rectification and correction of data is time consuming and

costly affair for the bank.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 63 | P a g e
 • It is always advisable to input the correct data rather than
focusing error rectification. (First time Right & Always Right)
22. Payment banks are playing very important role in banking
sector.
For
• As per the recommendations of Nachiket Mor committee
payment banks have been set up.
• They are offering banking and financial services to the
unbanked and under banked area.
• Helpful for migrant labour force, low-income household, small
entrepreneur etc.
• Effective alternative to commercial banks, with low value, high
volume transactions with expansion of rural banking and
financial inclusion.

Against

• It receives a ‘differentiated’ bank license from the RBI and

hence cannot lend, cannot issue credit cards, cannot set up
subsidiaries etc.
• Lack of awareness among the masses to access these services.
• Lack of infrastructure and access to operational resources.
• Technological hurdles.
23. There should not be any penalty for false compliance.
For
• Due to extreme work load some compliance work may be
overlooked inadvertently.
• Bankers are supposed to do their job with good faith without
negligence, however, sometimes due to various reasons proper
compliance could not be done.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 64 | P a g e
 • If the intention of employee is beyond doubt, they may be
allowed some more time for compliance rather than being
penalized on account of false compliance.

Against

• As a custodian of public money, we need to be meticulous, alert

and vigilant in all our dealings.
• Penalty for false compliance will work as a caution and will
always give a sense of alertness and responsibility.
• It will improve compliance culture of the bank.
24. Employees should not have right to call for a strike.
For
• In case of strike, public utility services will be impeded.
• Country’s economic growth will be hindered.
• Some section of employee may use strike as a tool to justify their
unjust demands.

Against

• Employee’s right may be jeopardized by their employer.

• Will create various HR and IR issues.
• Cases of employee exploitation will be increased.
25. Bad Banks are need of the hour in India.
For
• It will help the commercial banks to clean up their balance
sheets and resolve bad loans.
• A professionally run bad bank, funded by the private lenders
and supported by the government, can be an effective
mechanism to deal with NPAs.

Against

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 65 | P a g e
 • Banks will just part all their bad assets, and nothing will
happen there as it will be putting bad loans from PSBs to
another entity created by government itself, it would be like
putting money from one pocket to another.
• Capital required to buy the NPAs from all the banks even at
discount rates would be a huge amount.
• Though Bad Banks have been successful in many countries,
India differs from them in a significant manner. In other
countries, the NPAs are from bankrupt companies, but in India,
NPAs are mainly due to loss-making companies.
If given the right financial help and restructuring, their
units/firms/companies may revive.
26. There should not be any subsidies in the country.
For
• It is burden on the economy.
• This fund may be utilized for some other developmental
projects.
• It is an indirect load on country’s taxpayer.
Against

• In a social welfare state like India, subsidy is very helpful for

under privileged section, low-income groups, weaker section
etc.
• Through subsidy, government tries to uplift the living standards
of economically vulnerable sections.
27. Work from Home or anywhere should be promoted in
banks.
For
• Reduces operational expenses due to lesser electricity usage,
reduces travel expenses and other overheads.
Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 66 | P a g e
 • Reduces leave requirements by employees as they can take care
of their personal day to day work with office work during
breaks.
• Improves the work-life balance as the family also gets a feeling
of the person’s availability and gives him or her, the flexibility
in handling office and home duties.

Against

• Sometimes, a particular task needs collaboration or synergy,

which is not possible in a work from home environment.
• Productivity decreases as in home environment there are lots of
distractions and frequent breaks can cause low quality end
results.
• Banking mostly is about service delivery to individuals which
cannot be provided without the availability of workers in
offices; hence for banking industry apart from some basic back-
office works, it is not a viable idea.
• We may lose the team spirit.
• Data secrecy may be compromised.
28. Service charges on various banking services may further be
reduced or make it free.
For
• It will improve customer service and customer delight.
• Banks will attract new business and clients.
• More and more customers shall utilize various banking services,
which they are not availing right now due to heavy service
charge.

Against

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 67 | P a g e
 • Making banking service free of charge or at a lower service
charge will adversely affect profitability of bank.
• It will be a costly affair for the bank.
• Customers may misutilize these facilities.
29. The Limitation Act 1963 should not be applicable to the
banks.
For
• It is a law of limitation for filing court case, suits appeal etc
within prescribed time norms.
• Expiry of the prescribed time norms would debar a bank from
seeking legal recourse from the competent court.
• It is a herculean task to keep the entire document in force all the
time for legal recourse.
• Bank may utilize its time for other business and marketing
rather than sparing time for upkeep of the documents.
Against
• Banks cannot seek legal recourse forever; there must be a
prescribed time limit.
• It will create litigation and ambiguity in the court of law.
• Defaulters may also seek legal protection in case of non-
applicability of Limitation Act.
30. Banks should tie up more and more with Fintech
companies for business development.
For
• These tie-ups will improve the outreach of the banks and would
strengthen the distribution channels further.
• The tie ups save costs for the banks by moving away from brick
and mortar-based branch networking.

Against

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 68 | P a g e
 • Such tie ups destroy the traditional strength of bank’s own
distribution channels and marketing expertise and decreases
bank’s capacity to market on their own.
• Such tie ups can push banks into unavoidable credit risks over a
period if the Fintechs have a short-term approach to thrive or if
the Fintechs are malfeasant.
31. There should not be any Income-Tax in the country.
For
• Banks and other corporates will use this amount in other
profitable business avenues.
• Cost of goods and services will be cheaper.
• Individuals will be motivated to earn more and contribute more
to the GDP.

Against

• Concept of social Welfare State will be defeated.

• Incomes received from taxes are used for funding various
welfare schemes run by the government for citizens.
• Gap between rich and poor will be increasing.
32. Customer compensation to be increased manifold by the
bank for any deficient service.
For
• Such an approach enhances the image of the bank and reflects
on the moral strength of the organization.
• Such moves make employees more vigilant in delivering their
services.

Against

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 69 | P a g e
 • It can have an impact on the profitability of the organization.
Costs will soar due to customer compensations. All this may not
speak well from investor’s perspective.
• It may tempt customers with malfeasance to sue the bank and
lodge claim against the bank unnecessarily.
33. Credit Card culture in the economy should be discouraged.
For
• In a developing country like India, young generation are falling
prey to the credit card companies due to their insufficient
purchasing power and lavish lifestyle.
• Credit card companies are doing reckless financing without
proper due diligence.
• Number of credit card defaulters is increasing day by day.

Against

• It is an established practice in economically strong country to

use and promote credit card.
• It is easy, quick, hassle-free, innovative technical mode of credit
delivery.
• Even big banks are promoting credit cards in a big way to tap
the potential of doing quality business with less operating costs.
34. Debt relief and debt waiver should be discouraged in the
country.
For
• It is an extra burden on the economy and wastage of economic
resources.
• It will give a wrong message to the agricultural segment and
will create a pool of wilful defaulters.
• Prompt repaying borrowers will be de-motivated.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 70 | P a g e
 Against

• India being an agricultural country should always help their

farmers at the time of stress caused by the various reasons, i.e.
natural calamity, crop failure, bank debts etc.
• Very much required for the up liftmen of agricultural sector.
• Morale of the farmers will be high.
35. Banks should monitor the debit and credit summations in
the cash credit account instead of verifying stocks.
For
• Credit summations represent sales and other income, debit
summations represent purchases, expenses and advance
payments made. Thus, debit and credit summations give a clear
idea/picture of sales and purchases of the unit.
• Through credit and debit summations, the banks can cross-
check whether all sale proceeds are routed through the account,
failing which remedial action can be proposed.
• The same will facilitate the bank to ascertain the intention of the
borrower and make financial decisions.

Against

• Sometimes, sales may not be routed through the account.

Purchases may be made in cash. Nothing substantial will
therefore be represented by summations for cash credit account.
• There may be erroneous entries in cash credit account to
hoodwink the banks’ officials. Surprise visits to the units to
verify stocks, books of accounts, purchase invoices, sales
invoices will establish the level of operations in a more
convincing/logical manner.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 71 | P a g e
 • Therefore, both aspects may be treated important and
monitored. These are complementary to each other.
36. Defaulters name should be publicized by the banks.
For
• Defaulters will not get loans from other banks/FIs.
• It will work as a caution/alert for the probable/wilful defaulters.
• Banks recovery initiative will be strengthened.

Against

• Borrower’s creditworthiness and privacy will be jeopardised.

• Potential customer may not approach to the bank for financial
assistance due to the fear of bad publicity in case of loan
default.
• Banks may lose market share.
37. On-line classes should be promoted.
For
• Benefits of online classes are Cost reduction, time savings,
quality teaching staff anytime & anywhere in the world,
recorded videos, chat facilities etc.
• It is possible through e-learning method, remotely, digital
platform, over the internet etc.

Against

• It affects mental well-being, may cause addiction to the Internet

and gadgets, Network Challenges, Connectivity issues,
affordability in the rural areas.
• It is not useful in teaching methodology where physical
interactions, doubt clarifications, team building, and
performance assessments are required.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 72 | P a g e
 38. Country should have a cashless economy.
For
• There should not be any flow of cash in the economy.
• It will eradicate black money and corruption.
• It will promote digital transactions.

Against

• Cases of online frauds will be increasing.

• It may not be suitable for the people having no digital expertise
and digital infrastructure like, electronic gadgets or
connectivity.
• It may not be suitable for the middle/low-income group people,
illiterate people and people from semi urban and rural areas.
39. Banks KYC norms should be more systematic rather than
stringent.
For
• To facilitate the customer from the cumbersome task of doing
KYC formalities time and again.
• The KYC process should be simplified adopting a ‘risk-based’
instead of ‘one size fits all’ approach.
• There should be central KYC platform for all the service
providers.

Against

• To curb money laundering and financing of terrorism KYC

norms need to be more stringent.
• As per the international FATCA & CRS guidelines.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 73 | P a g e
 40. Aadhaar Card should be made mandatory for all account
holders.
For
• It will simplify the KYC process.
• Double or multiple financing will be avoided.
• A central financial data base will be prepared for all banking
and financial need.

Against

• Customer might face instance of breach of privacy.

• Customer’s personal data may be misused in public domain.
• Data theft and data breach may be done by the mischief
mongers.
41. Social media platform should be used by all the business
entity.
For
• It is very cost-effective mode to advertise its products and
services to the public at large.
• Clients will have the facility to access the social media platform
of a unit for any product or service-related enquiry.
• Online queries and complaints may be resolved through social
media platform instantly.
• Social media enhances customer engagement and brand
visibility for banks.
• It provides real-time updates on banking services and products.

Against

• Entity might face unnecessary and fake query, complaints and

comments.
• It may lead to disruption of work.
Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 74 | P a g e
 • Separate infrastructure and manpower will be required to
handle social media platform.
• Data privacy and security concerns are significant risks.
• Complex financial transactions may not be effectively handled
through social media.
42. Government should bring down its share in public sector
banks.
For
• PSBs should have their own robust strategy to earn profit,
increase their capital and market share.
• They should not depend on Government’s aid.
• Disinvestment will pave the way for professional expertise
having strategy of making PSBs stronger than ever.

Against

• Government’s control over PSBs will loosen.

• Social welfare schemes of the government may get hindered.
• Weak banks may not survive.
43. There should not be any TDS against the payment of
interest in Banks.
For
• To attract the depositors for depositing their surplus in banks
rather than investing in other avenues.
• Deposits in the banks provide guaranteed return to the
depositors.

Against

• To stop tax evasions.

• To bring all eligible deposits in the Tax purview for country’s
revenue generation.
Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 75 | P a g e
 44. Government should make use of electric vehicle mandatory.
For
• Electric vehicle- No fuel, No emission, charging at home.
• Environment friendly, Eco friendly & pollution free.
• Country’s foreign reserve will be saved on account of less
import of crude oil.

Against

• Vehicles are costly; batteries are expensive, lower number of

charging stations.
• Electric vehicle initiative is in its nascent phase, questions of
sustainability persist.
45. Government should make organic farming mandatory.
For
• It uses zero chemicals, reduces soil erosion and recycles animal
wastes back into the farm.
• Environment friendly, Eco friendly & pollution free.

Against

• Production costs are higher because farmers need more

workers.
• Organic food is more expensive because it is produced in lesser
quantity.
• Marketing and distribution are not efficient due to its high cost
of cultivation.
46. Government sponsored schemes should be abolished.
For
• Government has to incur huge amount on sponsorship, it is a
burden on the economy.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 76 | P a g e
 • This fund may be utilized for some other developmental
projects.
• People are becoming dependent on government for financial
assistance.
Against
• It provides financial security with aim to uplift socio-economic
standard of the beneficiary as India is a Social Welfare State.
• It also improves livelihood of the people and provides income
generation opportunities.
47. Transactions in SB accounts should be restricted.
For
• To de-congest the branch and allow branch staff to devote more
time for marketing and business development.
• To promote the use of alternate and digital channel.
• Operational cost will be reduced.

Against

• Banker-Customer interactions will come down and in future

banks will not be able to understand the needs and requirements
of customers.
• It may not be appropriate for illiterate or less tech savvy
customers.
48. Banks should take complaints and feedback as an
opportunity for improvement.
For
• It allows us to monitor our performance and alerts us to
important changes we need to make.
• The ability to hear and truly listen to people’s opinions, even
when they’re negative, improves relationships, performance,
and negotiating abilities.
Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 77 | P a g e
 Against

• It can make us defensive, angry, and self-conscious, which

subsequently impairs our effectiveness. We can’t take all
feedback we receive at face value. We need to look at it
objectively and assess the motives.
• It is always advisable to do first time right to avoid complaints.
49. Bank should compulsorily give retirement to the non-
performers.
For
• It will improve profitability and customer service of the bank.
• Performers will get promotion and incentives.

Against

• Morale of the staff will be adversely affected.

• Banks may have to pay huge amount on compensation.
• Will create various HR and IR issues.
50. Freebies culture in the economy should be immediately
abolished.
For
• Providing free electricity, free public transport, free water and
waiver of pending bills and loans are often regarded as
freebies.
• It is not fair to tax one section of the society and to provide
benefits to another section.
• Freebies became a burden on the economy. Because of the
freebies, sectors where investment is needed for the
development of the economy are being affected adversely.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 78 | P a g e
 • Not a productive use of the scarce resources and makes people
inactive and lazy and will affect economic development of the
country.
• Freebies always have a cost to others than the beneficiaries.
Against

• Underprivileged are getting benefitted.

• The purchasing power of the poor is very low and hence
freebies for essential consumer commodities/welfare measures
must be provided to them.
• Every citizen is not getting equal opportunities for development.
• Avoids social unrest that may lead to all the social evils.
51. Only Agriculture graduates should be posted at rural
branches.
For
• They have necessary knowledge and skills in the field of
agriculture and other allied activities.
• Their services can be utilized to make a deeper thrust into the
rural areas and increase credit growth.

Against

• Agricultural business growth does not depend merely on the

knowledge of technical aspects of Agriculture.
• Employees from different background may also desire to work
in Agricultural segment.
52. Public sector banks must be exempted from CBI/CVC.
For
• This will remove the fear in decision making and will bring
about a level playing field between public sector banks and
private sector banks.
Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 79 | P a g e
 • Bank executives must take reasonable risks for business growth
and development.
Against
• It may not be feasible to make an exception for public sector
banks.
• Corruption may increase and will adversely affect image of
public sector banks.
53. Five days banking may be implemented.
For
• Most of the transactions are being done on digital or alternate
channel now a days.
• It will reduce operational expenses of the bank.
• Work life balance and well-being of bank employees will
improve.

Against

• Some urgent utility services may be hampered.

• Banks may lose business due to tough competition.
54. Use of Alternate channels should be encouraged.
For
• It will reduce the transaction cost and increase profitability.
• Customers can do the transactions 24X7 as per his/her
convenience.
• It will help to declutter the branches.

Against

• Due to non-interaction with the customers, banks will not be

able to understand the need of customer and may lose potential
business.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 80 | P a g e
 • Instances of unauthorized transactions, cyber-crime and digital
frauds may be increase.
55. There should not be any Cross Selling in the banks.
For
• Employees are finding it difficult to give quality time to its core
business like deposits, advances & NPA monitoring.
• Sometimes stiff targets of cross sell business are hampering
work life balance and well-being of employees.

Against

• Cross selling business gives commission-based income and

increases profitability.
• It helps banks to retain and increase the loyalty of a customer to
the bank.
• Under the universal banking era, cross selling is very much
required to beat the competition.
56. There should not be any mandatory rural assignment for
bank official.
For
• It is adversely affecting the attrition rate.
• Officials having specialization in credit, forex, treasury etc. may
be underutilized in rural assignment.

Against

• To tap the agriculture business segment quality, an officer

should be posted in rural areas.
• Rural assignment will help the officials to understand the nitty
gritty of agri segment.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 81 | P a g e
 57. Equitable Mortgage should be registered.
For
• Fraudulent sale of property will be reduced.
• Banks charge on the property will be protected.
Against

• It would attract stamp duty cost and will be a burden on the

borrower.
• As per Transfer of Property Act, registration of EM is not
mandatory.
58. SBI should not follow the competitors blindly.
For
• Our organization should grow in tune with the policy laid down
in our Vision, Mission & Value statements.
• Customer’s Centricity & Customer’s Trust should always be on
top of our priorities.

Against

• To face competition, we must market our products and service

aggressively.
• Customer retention as well as customer acquisition is the need
of hour.
59. Writing off agriculture loans should be stopped.
For
• It drains the profitability of banks.
• The credit discipline in the agriculture segment will be
adversely affected.

Against

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 82 | P a g e
 • To safeguard small and marginal farmers, their dues can be
written off.
• To boost the fresh financing in the agriculture segment.
60. More and more banking facilities should be made free of
service charges.
For
• It will increase banking transactions habits of the general
public.
• It will help banks and governments to achieve targets such as
financial inclusion, digital penetration etc.

Against

• It would have adverse effect on the profitability of banks.

• Chances of misuse of banking facility cannot be ruled out.

61. Digital Banking should replace traditional banking?

For:
• Digital banking provides convenience and saves time for
customers with 24/7 access.
• It reduces operational costs for banks by automating many
processes.
Against:
• Cybersecurity risks increase as more transactions move online.
• Digital illiteracy, especially in rural areas, limits access to
banking services.
62. Loan waivers should be given to farmers?
For:
• Loan waivers provide immediate financial relief to distressed
farmers.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 83 | P a g e
 • They can help prevent farmer suicides and improve mental well-
being.
Against:
• Loan waivers discourage credit discipline among farmers.
• They increase the fiscal burden on the government, affecting
public finances.
63. RBI should increase repo rates to control inflation?
For:
• Increasing repo rates reduces money supply and helps control
inflation.
• Higher interest rates encourage citizens to save more.
Against:
• Borrowing becomes costlier, affecting businesses and
individuals.
• It may slow down economic growth and investment.
64. Financial Inclusion should be prioritized through schemes
like Jan Dhan Yojana?
For:
• Financial inclusion brings unbanked citizens into the formal
banking system.
• It promotes digital payments and financial literacy among rural
populations.
Against:
• Many accounts remain inactive due to lack of awareness or
usage.
• Implementing such schemes creates operational and monitoring
burdens for banks.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 84 | P a g e
 65. Green Banking initiatives should be widely adopted?
For:
• Green banking promotes environmental sustainability and
reduces carbon footprint.
• It enhances the public image of banks as socially responsible
institutions.
Against:
• Implementation of green banking practices can be costly.
• Customer awareness about green banking is limited, reducing
impact of the same.
66. RBI should continue to regulate digital lending platforms?
For:
• Regulation ensures customer protection and prevents predatory
lending.
• It promotes transparency and accountability among fintech
companies.
Against:
• Excessive regulation can slow innovation in the fintech sector.
• Smaller startups may find compliance costly and complex.
67. Priority Sector Lending norms should be continued?
For:
• They ensure credit flow to agriculture and weaker sections,
promoting inclusive growth.
• It aligns with national economic goals of social equality.
Against:

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 85 | P a g e
 • It sometimes leads to poor-quality assets and higher NPAs.
• Banks may face profitability pressures due to low-interest
lending.
68. Public sector banks should be allowed greater autonomy?
For:
• Autonomy allows banks to make faster business decisions
without political pressure.
• It improves accountability and operational efficiency.
Against:
• Excessive autonomy might reduce oversight, leading to
mismanagement.
• It can also weaken the government’s ability to ensure social
banking objectives.
69. Use of digital rupee (CBDC) should be expanded?
For:
• The digital rupee will make transactions faster and reduce cash
management costs.
• It promotes transparency and reduces currency counterfeiting.
Against:
• There may be privacy concerns and cybersecurity risks.
• Implementation requires strong digital infrastructure across
India.
70. Banks should focus more on MSME lending?
For:
• MSMEs are the backbone of the economy and financing them
promotes job creation.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 86 | P a g e
 • It supports local entrepreneurship and balanced regional
growth.
Against:
• MSME loans often carry higher default risks.
• Lack of proper financial records makes credit appraisal
difficult.
71. RBI’s Monetary Policy should be more growth-oriented
than inflation-focused?
For:
• A growth-oriented policy stimulates economic activity and
employment.
• It supports recovery during economic slowdowns.
Against:
• Ignoring inflation can erode purchasing power.
• Persistent inflation can destabilize the economy in the long
term.
72. Foreign Banks should be allowed greater entry into India?
For:
• It enhances competition and introduces global best practices.
• It attracts more foreign investment and improves service
quality.
Against:
• Foreign dominance could harm domestic banks.
• Profits may be repatriated abroad instead of contributing to
local development.
• Social objectives of the Government may not be achieved.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 87 | P a g e
 73. Banks should be allowed to charge for UPI transactions?
For:
• Charges can help banks recover infrastructure and maintenance
costs.
• It ensures sustainability of digital payment systems.
Against:
• UPI adoption may decline if customers face charges.
• It contradicts the government’s vision of a cashless and
affordable payment system.
74. Women entrepreneurs should receive special credit
schemes?
For:
• Special schemes promote gender equality and empower women
economically.
• They enhance financial inclusion and encourage
entrepreneurship.
Against:
• It may create dependency on subsidies.
• Some male entrepreneurs may perceive it as unequal treatment.
75. Cooperative banks should be brought fully under RBI
regulation?
For:
• Full regulation ensures better governance, accountability, and
customer protection.
• It can prevent frauds and mismanagement in cooperative banks.
Against:

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 88 | P a g e
 • Local autonomy of cooperatives may be affected.
• Increased compliance burden can strain smaller cooperative
institutions.
76. Banks should increase the use of biometric authentication?
For:
• Biometric systems enhance security and reduce identity fraud.
• It simplifies access for customers who struggle with passwords
or OTPs.
Against:
• Biometric data breaches could be disastrous.
• Infrastructure costs for biometric systems are high in rural
areas.
77. Banks should offer only secured loans to reduce NPAs?
For:
• Secured lending reduces credit risk and improves asset quality.
• It promotes a more stable banking environment.
Against:
• It limits access to credit for startups and small borrowers.
• Banks may miss opportunities in high growth but unsecured
sectors.
78. Rural branches should be made mandatory for all banks?
For:
• Rural branches promote financial inclusion and serve the
unbanked population.
• They help in implementing government welfare schemes.
Against:

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 89 | P a g e
 • Maintaining rural branches increases operational costs.
• Low business volumes make them less profitable.
79. RBI should limit the number of bank licenses issued?
For:
• Limited licenses help maintain strong oversight and prevent
unhealthy competition.
• It ensures stability in the banking system.
Against:
• Restricting licenses discourages innovation.
• More players can improve efficiency and customer service.
80. Government should stop recapitalizing public sector banks?
For:
• It encourages banks to improve efficiency and accountability.
• Public funds can be redirected toward other developmental
priorities.
Against:
• Without recapitalization, weak banks may fail.
• It could affect public trust in the banking system.
81. RBI should promote green finance aggressively?
For:
• Green finance supports environmental sustainability and long-
term economic health.
• It aligns with India’s climate commitments.
Against:
• Green projects may offer lower short-term returns.
• Banks may find it difficult to assess environmental risks.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 90 | P a g e
 82. Financial Literacy should be mandatory in school
curriculum?
For:
• It develops money management skills from an early age.
• Financially literate citizens make better use of banking and
digital tools.
Against:
• Schools may face resource constraints.
• Financial behavior often depends more on experience than
classroom learning.
83. RBI should promote more digital-only banks?
For:
• Digital-only banks reduce costs and increase accessibility.
• They appeal to younger, tech-savvy customers.
Against:
• They may exclude people without smartphones or internet
access.
• Technical outages can disrupt services.
84. Banks should use social credit scoring for lending?
For:
• It allows banks to assess customers with no formal credit
history.
• It helps extend credit to the unbanked.
Against:
• Privacy issues arise from analyzing personal behavior data.
• Scores may be inaccurate or biased.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 91 | P a g e
 85. Cash transactions above a certain limit should be banned?
For:
• Banning large cash transactions reduces black money
circulation.
• It promotes digital payments and transparency.
Against:
• Rural and informal sectors still depend heavily on cash.
• Strict limits may cause inconvenience to legitimate users.
86. RBI should intervene more actively to strengthen the
rupee?
For:
• Intervention stabilizes currency fluctuations and maintains
investor confidence.
• It helps control import inflation.
Against:
• Continuous intervention depletes foreign reserves.
• Market forces should determine exchange rates naturally.
87. Banks should be allowed to enter insurance and mutual
fund businesses freely?
For:
• Diversification increases revenue sources for banks.
• It offers one-stop financial solutions for customers.
Against:
• It may distract banks from their core banking operations.
• Conflict of interest could arise in product recommendations.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 92 | P a g e
 88. Microfinance Institutions should be fully regulated by
RBI?
For:
• Regulation ensures borrower protection and standardizes
interest rates.
• It improves financial transparency and accountability.
Against:
• Overregulation can stifle innovation and flexibility.
• Smaller MFIs may struggle to meet compliance requirements.
89. Banks should prioritize renewable energy projects in
lending?
For:
• Renewable projects support sustainable growth and job
creation.
• It aligns with India’s global environmental commitments.
Against:
• Such projects often carry long gestation periods.
• Risk-return ratio may be less attractive to banks.
90. Payment banks should be allowed to lend money?
For:
• Allowing lending would enhance their profitability and financial
inclusion role.
• It makes them more competitive with commercial banks.
Against:
• It could increase their risk exposure.
• Payment banks were designed for low-risk transactions only.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 93 | P a g e
 91. RBI should mandate financial data sharing under Account
Aggregator framework?
For:
• Data sharing enhances transparency and credit access.
• It empowers customers with control over their own financial
information.
Against:
• Privacy and data misuse concerns are high.
• Not all customers may understand consent mechanisms
properly.
92. There should be stricter laws against bank frauds?
For:
• Strong laws act as a deterrent against willful defaulters and
fraudsters.
• It restores public confidence in banking institutions.
Against:
• Harsh penalties may discourage genuine business risks.
• Legal processes could become lengthy and complex.
93. NBFCs should be treated at par with banks in regulations?
For:
• Uniform regulation ensures financial stability and customer
protection.
• It prevents regulatory arbitrage.
Against:
• NBFCs have a different business model and need flexibility.
• Overregulation may hamper their growth.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 94 | P a g e
 94. Banks should give higher interest on women’s savings
accounts?
For:
• It encourages women to save more and strengthens their
financial independence.
• It promotes gender equality in financial participation.
Against:
• Preferential rates may affect bank profitability.
• It may be seen as discriminatory against other customer groups.
95. India should adopt full capital account convertibility?
For:
• It would attract more foreign investment and integrate India
with global markets.
• It enhances currency flexibility and competitiveness.
Against:
• Sudden outflows can destabilize the economy.
• India’s financial system needs stronger safeguards first.
96. Government should promote public awareness about credit
scores?
For:
• Awareness helps individuals maintain healthy financial habits.
• It reduces loan defaults and improves credit culture.
Against:
• Public campaigns require continuous funding.
• Many people may not act on awareness alone.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 95 | P a g e
 97. Rural credit delivery should be fully digitized?
For:
• Digital delivery reduces corruption and ensures faster
disbursal.
• It enhances transparency and record-keeping.
Against:
• Limited internet access and digital literacy remain barriers.
• Farmers may prefer traditional channels.
98. RBI should enhance a deposit insurance coverage limit
from ₹5lakh?
For:
• Higher insurance coverage increases depositor confidence.
• It protects middle-class savings during bank failures.
Against:
• It may create moral hazard and reduce banks’ risk discipline.
• Premium costs may rise for banks.
99. Banks should link all loans to external benchmarks?
For:
• It increases transparency and ensures fair interest rates.
• Borrowers can benefit from policy rate cuts.
Against:
• Interest rate volatility may hurt borrowers.
• It complicates loan pricing for banks.
100. Priority should be given to infrastructure financing by
banks?
For:

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 96 | P a g e
 • Infrastructure lending promotes national development and job
creation.
• It supports long-term economic growth.
Against:
• Infrastructure projects involve long tenures and high risks.
• Asset-liability mismatch can arise for banks.
101. RBI should limit cash withdrawal from ATMs to promote
digital payments?
For:
• It encourages digital payment habits among citizens.
• It reduces cash-handling costs for banks.
Against:
• It may be inconvenient to people during exigency.
• Rural and elderly populations still rely on cash.
102. RBI should allow banks to use social media data for credit
scoring?
For:
• It helps assess customers with limited credit history.
• It enables faster and more personalized lending.
Against:
• Data privacy concerns and potential bias may arise.
• Social behavior does not always reflect financial discipline.
103. Digital literacy programs should be made compulsory for
all bank customers?
For:
• It empowers customers to use online and mobile banking safely.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 97 | P a g e
 • It reduces frauds caused by ignorance.
Against:
• Mandatory programs may burden banks with extra costs.
• Older citizens may find digital learning difficult.
104. RBI should continue promoting financial inclusion as a
national priority?
For:
• Financial inclusion ensures equitable access to financial
services for all citizens.
• It strengthens economic resilience and reduces poverty.
Against:
• Rapid inclusion without proper education can lead to misuse.
• It increases administrative workload for banks.
105. Interest on Current Account Should Be Paid.
For:
• Paying interest on current accounts will attract more business
customers and improve CASA deposits for the bank.
• It will encourage customers to keep higher balances,
strengthening the bank's low-cost funds base.
Against:
• It may increase the bank’s cost of funds and affect profitability,
especially in competitive market conditions.
• Current accounts are meant for frequent transactions, not for
earning interest, so this policy may disrupt the traditional
banking structure.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 98 | P a g e
 106. Interviews Should Be Discontinued for Promotion to
Higher Cadre.
For:
• Promotions based solely on written exams and performance
records will ensure transparency and remove subjectivity.
• It reduces bias or favoritisms and gives equal opportunity to all
deserving employees
Against:
• Interviews assess communication, leadership, and decision-
making skills which cannot be judged only through written
exams.
• Senior roles require behavioural and managerial evaluation,
which is effectively assessed during interviews.
107. Top Management in Public Sector Banks Should Be Paid
on Par with Private Banks.
For:
• Competitive salaries will help retain talented leaders and
reduce migration to private banks.
• Higher compensation will motivate top management to adopt
efficiency and performance-driven culture.
Against:
• Public sector banks operate with social responsibility, and very
high compensation may attract public criticism.
• Salary parity alone cannot ensure performance; reforms in
decision-making freedom and accountability are also essential.
108. Registration of Equitable Mortgage Should Be Done with
Registrar of Companies for All Types of Borrowers.
For:
• ROC registration for all mortgages will increase transparency
and prevent multiple financing on the same property.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 99 | P a g e
 • It will strengthen the security and legal standing of banks in
recovery cases.
Against:
• Mandatory ROC registration for all cases may increase
compliance burden and delay loan processing.
• Additional expenses and procedural steps may discourage small
borrowers and affect credit flow.
109. Leaders Are Not Made, They Are Born.
For:
• Natural leaders possess innate qualities like vision, confidence,
and inspiration which cannot be taught easily.
• History shows many great leaders emerged naturally with
inherent leadership attributes.
Against:
• Leadership skills can be developed through training,
experience, and continuous learning.
• Many successful corporate and public leaders built their
leadership abilities gradually through exposure and practice.
110. There should not be any cap on maximum number of
Doorstep Banking Services (DSB) availed by the customer in a
month.
For:
• To cater the genuine banking needs of senior citizens,
differently abled customers, or customers residing in remote
areas who rely heavily on DSB.
• It will help bank to expand financial inclusion, strengthen
customer relationships, and project a positive image of
customer-centric service delivery.
Against:

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 • To restrict abnormally high numbers of DSB requests raised by
an account holder for the same services in a short span of time,
when a customer raises more than 5 DSB requests of the same
type within a calendar month, request will be considered as
abnormally high.
• To ensure fair use of services by the customers and bring about
operational efficiency in the system.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 101 | P a g e
 SITUATIONAL ANALYSIS

1. Bank has sanctioned OD against LIC policy. Borrower has

committed suicide and died, or borrower has committed murder
and got punishment. Please discuss the position of the bank.

Answer:

Loan is granted against surrender value of LIC policy, and policy is

assigned in favour of the bank. Bank’s right is protected. Bank can
claim the amount any time either on the death of the policy holder or
on expiry of the policy.

2. There is a locker in the joint name of Mrs. Gautam & Mr.

Gautam on E or S Basis. One day Mrs. Gautam informs to the
bank that she has lost the locker keys, and her husband Mr.
Gautam is out of town, and she wants to access the locker for
taking away the gold ornaments kept inside the locker for her
daughter’s marriage, which is to be solemnized shortly. What
should the branch do?

Answer:

The key has been lost and locker has to be forced open. In such
circumstances, the request of the entire locker holders are to be
obtained in writing and the locker is forced open in the presence of
all of them. A confirmation must be obtained from Mr. Gautam by
email/fax/telephone/video call for breaking open the locker. Bank will
obtain an indemnity before permitting break open. Procedure for
break open the locker has to be followed, and inventory of the
contents has to be made and kept on record. A letter ratifying the
action has to be obtained on Mr. Gautam’s return. Branch has to
intimate the controllers as well.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 102 | P a g e
 3. Mr. Pathak has deposited a sealed cover for safe deposit. He
wants that the sealed cover should be handed over to his minor
son immediately on his attaining the majority. Please discuss.

Answer:

In this situation, Mr. Pathak has deposited a sealed cover for Safe
Deposit and wants it to be handed over to his minor son upon his
attaining majority. As per standard banking norms and the Safe
Custody Articles Rules, the bank can deliver the article only to the
depositor himself or to an authorized person clearly nominated by
him in writing. Since a minor cannot enter into a valid contract under
the Indian Contract Act, 1872, the bank cannot treat the minor son as
a party to the safe custody contract during minority. However, Mr.
Pathak may execute a proper authorization or declaration instructing
the bank to hand over the sealed cover to his son after he legally
becomes a major (18 years), along with valid ID proof and age proof.
The bank must verify the authorization, ensure that KYC norms are
fully complied with, and record clear instructions in the Safe Custody
Register. At the time of release, the bank will confirm the son’s
identity, obtain his signatures, and ensure that the date of majority
has been attained as per official documents. If Mr. Pathak passes
away before his son becomes major, the bank will follow nomination
rules or legal heirship procedures before releasing the article.
Therefore, the bank officer should guide Mr. Pathak to submit written
instructions and complete the necessary documentation so that the
sealed cover can be delivered smoothly and legally when the son
attains majority.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 103 | P a g e
 4. Mr X & Mrs. X have locker facility on E or S basis. Mr. X
informs to the bank that, the key has been lost and that Mrs. X is
insane. Later, Mrs. X comes to the bank with the locker key to
operate the locker. Please discuss.

Answer:

Bank should not take cognizance of the information of Mr X that his

wife has become insane. Her insanity has to be properly established.
In this case, a possible dispute or misunderstanding between Mr. &
Mrs. X should not be ruled out. Hence, Mrs. X should not be allowed
to operate the locker. The bank will duly allow further operations
against joint mandate only. In case of further dispute, Bank will
advise them to close the locker.

5. Recently one account holder of the branch passed away and the
bank settled claim of the balance by paying to his son (the
nominee of the account). The son being an existing account
holder made fixed deposits from the claimed amount (approx. 10
lakhs), after settlement of deceased claim. After a week, the
branch received income tax attachment order on the deceased
customer’s account for Rs 6 lakhs. What should the branch do?

Answer:

The intimation from Income Tax department has been received after
the settlement of the deceased claim. Branch cannot attach the
claimant’s account. Branch should inform the IT department of the
settlement and also advise the details of the nominee so that IT
department may begin proceeding for attachment of money held in
nominee’s account.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 104 | P a g e
 6. Mr. Ram has taken a gold loan. He was not traceable by the
branch, six years have passed. One day Mrs. Ram comes to the
branch, she wants to close the gold loan and take delivery of gold
ornaments. What should the branch do?

Answer:

Loan account may be closed to save the interest cost. However, she
cannot take delivery of gold ornaments. As per section 108 of Indian
Evidence Act, 1872 a person presumed legally dead only when
his/her existence have not heard about for 7 years. Bank will hold the
gold ornaments as a safe deposit, and if Mr. Ram is not traceable
even after expiry of 7 years the gold ornaments will be delivered to
the legal heirs of Ram as per the court order under section 107/108 of
Indian Evidence Act.

7. Md. Karim kept certain securities for safe custody. He has lost
the memorandum of securities and COS 139 issued by the bank.
Now, Md. Karim wants delivery of the security. Please discuss.

Answer:

The memorandum of securities is not a receipt but only an

acknowledgement and hence duplicate copy can be given on a simple
request letter from Md. Karim. However, duplicate COS 139 will be
issued on request after furnishing an indemnity by Md. Karim.
Finally, Md. Karim has to discharge the COS 139 & submit it to bank
along with COS49 duly signed to take the securities.

8. Shyam had a locker in his sole name. He died some days back.
Now, his son Ram approaches the bank with the locker keys and
a Will handwritten by his father that the contents of the locker
are delivered to him. In the meantime, Radha, daughter of shyam

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 105 | P a g e
 also gives a letter to the bank stating that she has also a claim
over the property. Please discuss.

Answer:

First of all, as a matter of courtesy the BM will send a letter of

condolence to the family members. The death certificate has to be
called for and carefully scrutinized. A will without probate cannot be
executed, further there should not be any counterclaim. Both son &
daughter’s claim cannot be accepted. In case of dispute between the
legal heirs, Probated will or letter administration would be required.
In the present case, suitable court order is necessary for delivering
the contents of the locker. In case of nomination, it will be in order
for the bank to deliver the contents to the nominee.

9. Mr. Malay has a locker. Locker rents are overdue. He is also

having one clean OD a/c which is running irregular, time-barred
and interest are overdue. One day he comes to the bank to
operate the locker. The branch official refuses to allow him to
operate the locker and says that bank has a lien on the contents
of the locker for the above dues.

Answer:

In a locker relationship between the bank and customer is Licensor-

licensee. The articles are kept for safe keeping only. Bank cannot
exercise a general lien on the contents of the locker. However, bank
can exercise particular lien on the contents of the locker for recovery
of locker overdue rentals only.

10. The bank has erroneously credited Rs 10,000/- relating to

A’s account to B’s account. Subsequently B closed the account
and has drawn the entire amount available in the account

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 106 | P a g e
 including the wrongly credited one. A has now claimed the
amount. Please discuss the situation.

Answer:

Any credit afforded wrongly must be returned along with interest as

this leads to unjust enrichment as per section 72 of Indian Contract
Act, 1872. In the cited case the relative vouchers/records etc have to
be scrutinized and the bank will make good the amount to A’s account
without delay and demur. However, the bank can legally proceed
against B to recover the dues. The staff concerned must be made
accountable for such act.

11. Mr. Raghu has deposited a box “said to contain” gold

ornaments in safe deposit. At the time of delivery, the original
wrapper and seals were not found on the box, instead bank’s
wrapper and seals were found. The box was also lighter in
weight. Mr. Raghu refused to take delivery of the safe deposit.
Please Discuss.

Answer:

As per section 151 of Indian Contract Act, 1872 Bailee has to take
reasonable care of goods bailed to him. The bank is a bailee and it
ought to have taken due care of the goods. The condition of the box at
the time of delivery was not the same when it was entrusted to the
bank. The bank had put its own wrapper replacing that of the
depositor’s which is not in order. The position cannot be rectified at
this stage. The bank, therefore, has to make good the loss.

12. A locker hirer after operation of the locker has forgotten to

lock it. The accountant observes this at the end of the day. What
steps should be taken?

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 107 | P a g e
 Answer:

The inventory of the contents should be taken in the presence of two

officials and preferably a customer also. The contents may then be
sealed and kept as a safe deposit item. The customer should be
contacted. The matter should be explained to the customer and put on
record. The contents must be delivered against unconditional
acknowledgement of the entire content. The controller should be
advised. Once the process is complete, the locker is to be locked.
However, the accountant should have checked the locker room just
after the locker operation.

13. Mr Ram an employee of PQR company who visits the bank

frequently for deposits and payments in respect of the company
a/c withdrew a sum of Rs 5 lakh on 06.01.2024. On 07.01.2024
director of the company informs that Mr Ram was removed from
service on 01.01.2024. The company denied that it had issued the
cheque for Rs 5 lakh that was paid by the branch. On scrutiny,
you noticed that a slight difference in the signature of the
director in the cheque. You have tried to satisfy the customer
stating that it was a small amount, and the cheque was paid in
good faith. Director demanded refund of the money. Please
discuss the situation.

Answer:

It should be remembered that the company is the bank’s customer,

and the bank can only pay as per the mandate of the company.
However, there is no doubt that Mr. Ram was the known agent of the
company for making deposits, withdrawing money etc. Forgery in the
cheque means that there is no mandate to pay the cheque. The bank is
liable to the company for having paid a forged cheque. The bank’s

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 108 | P a g e
 stand that the amount was small and that it was paid in good faith is
not tenable.

14. Krishna, an old customer of your bank who has appointed

Mohan as his power of attorney holder for operating his current
account has gone abroad. Mohan POA of Krishna died. Two
cheques of Rs 1 lakh &Rs 2 lakh signed by Mohan received on
clearing favouring creditors of Krishna. One cheque of Rs 3 lakh
signed by Krishna also received for payment. Please discuss the
situation.

Answer:

According to section 201 of India Contract Act, 1872 the contract of

agency gets terminated on the death of the principal. As Mohan has
signed as an attorney of Krishna, in a representative capacity and
since the principal is alive, the cheques signed by Mohan can be paid.
The cheque signed by Krishna, the principal, should be paid as his
power to operate on the account is not affected.

15. Sonu having account at your branch remitted Rs 5 lakh to

his account. Inadvertently, your bank credited the amount in
Monu’s account. A cheque of Rs 4 lakh drawn by Monu
favouring Lalu was presented and duly paid by the bank. A
cheque of Rs 4.5 lakh drawn by Sonu was returned by the bank
with remarks “Insufficient Funds”. When contacted Monu
narrated that he did not want the bank to honour the cheque of
Rs 4 lakh favouring Lalu and therefore he has not kept sufficient
balance in his account. Please discuss the whole situation.

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 Answer:

It is not in order for the bank to credit the amount to Monu. The bank
has been negligent in providing a wrong credit. The bank should
provide immediate credit to the account of Sonu, with the approval of
controller.

The contention of Monu that the cheque was not to be paid is

untenable. It is established by law that when a cheque is issued, it is
intended to be paid and there is adequate balance in the account.
Monu is liable to repay the amount. Immediate steps should be taken
to recover the amount from Monu.

16. Ram a customer of UBI drew a cheque for Rs 1 lakh

favouring Lakshman or order for settlement of his dues and
despatched it to him after adding the general crossing. One Mr.
Shyam interrupted the cheque and forged Lakshman’s
endorsement and delivered it to Bharat for value, who took it
knowing the forgery by Shyam. Bharat your customer without
disclosing the facts presents the cheque through your bank.
Please discuss the whole situations.

Answer:

The collecting banker will get protection if he has collected a crossed

order cheque for a customer in good faith and without negligence.
Your branch is in order in collection the cheque for a customer. The
paying banker will get protection if he has paid the cheque in due
course as per section 85 and section 10 of NI Act even though the
endorsement is a forged one as long as the endorsement appears to
be in order.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 110 | P a g e
 Shyam will not get a good title over the cheque and become a holder
in due course since he has received the cheque with a forged
endorsement. Therefore, Shyam will remain liable to the true owner
of the cheque. A holder in due course of a negotiable instrument will
get the title free from any defects in the title of a previous holder,
provided, he receives it for value/consideration and good faith; he
receives it complete and regular on the face of it; and he receives
without any notice as to defect in the title of previous holder. In this
case since Bharat was aware of the fact of forgery done by Shyam,
hence he will not get good title over the cheque even if he has
received the cheque from Shyam for value/consideration.

17. Mohan, a customer of your branch has come to the BM and

informed him that he has received a fake Rs 200 currency note
through branch ATM. He wants to replace the note. Please
discuss the situation.
Answer:
Firstly, branch has to ensure as to whether cash in ATM was
loaded with “Examined and Verified Notes”, processed through
Note Sorting Machine. Secondly, branch has to verify the CCTV
footage to ensure that the customer has received the particular
note from branch ATM only.
Finally, after verifying above guidelines, bank can replace the note
to the customer but if the CCTV footage doesn’t support the
customer’s claim, request of the customer will be declined.
18. A branch is having a CC account in the name of Mr.
Kartar, with a limit of Rs10 lacs with outstanding of Rs 5 lacs.
Mr. Kartar has a TDR of Rs 5 lacs, which is kept as margin for a
Bank guarantee issued. The branch has received an Income Tax
Attachment order, attaching Rs 5 lacs from Mr. Kartar’s
account. Please discuss the situation.
Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 111 | P a g e
 Answer:
In this case, the undrawn portion of the CC account will not be
attached by the Income Tax order as no money is due and payable
by the bank. Any credit balance in the CC account or any other
account will be attached.
Further, in case of BG, the guarantee is a contingent liability and
will arise only if it is invoked by the beneficiary. As such the bank
cannot exercise the right of set off in this case and Income Tax
attachment order will attach the TDR of Rs 5 lacs. However, bank
will advise Mr. Kartar either to get the attachment order vacated
or provide alternative security for the BG.
19. Mr Singh payee of a cheque or Rs 10,000 endorses the
cheque in favour or Mr Tyagi in consideration. Mr. Singh met a
fatal accident and died at the spot, subsequently the cheque was
handed over to Mr Tyagi by the police. The legal heirs of Mr
Singh disputed the negotiation. What will be the legal status of
Mr Tyagi.
Answer:
As per section 48 of NI Act, an order instrument can be negotiated
by endorsement and delivery. In this case, the payee had endorsed
the instrument in favour of Mr Tyagi but he had not completed the
delivery. The legal heirs can dispute this negotiation. The legal
heirs will become holder of the instruments u/s 8 of NI Act.
20. Your branch maintains a CA in the name of M/s ABC. A
cheque of Rs 20,000 is presented by the payee Shri X at 4.30 p.m
when the business hours were over. The payee insists on payment
immediately, as he needs the money for medical treatment of his
wife. What action would you take on the request of the payee?

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 Answer:
The bank will not make payment of the cheque once the business
hours are over. As per section 65 of NI Act, the cheques should be
presented to the paying bank within the banking business hours.
The payment of the cheque after the business hours is not
considered a payment in due course. Payment of the cheque after
the business hours involves various kinds of risks like, stop
payment by the drawer, death/insolvency of the drawer, receipt of
garnishee/attachment order etc.
21. ABC bank issued a demand draft on the request of Gaurav.
DD was sent to the payee Rajesh. Unfortunately, DD as lost in
transit. Now Gaurav wants to get it cancelled after obtaining its
duplicate from the bank. ABC bank wants indemnity form
Rajesh. Please discuss.
Answer:
Once the demand draft is delivered to the payee, bank becomes
trustee of the payee. Without a written request and indemnity bond
from Rajesh, duplicate demand draft cannot be issued.
22. Mr. Chandan has a CA OD with XYZ bank. CA OD a/c has
been running irregular. Mr. Chandan has got a legal
representation decree in his favour from a local court, for the
estate of his deceased maternal uncle’s account. Can bank
exercise its right of set off in his deceased maternal uncle’s
account to recover the irregular CA OD a/c? Please discuss.
Answer:
The amount being claimed by Mr. Chandan in this case is in a
representative capacity. He is the trustee of the legal heirs of the
deceased person. CA OD a/c is his personal liability. Since both
the accounts are not in the same name and same capacity, the bank
cannot exercise its right of set-off.

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 23. Mr Mikki and Mr Nikku have been maintaining an s/b
account with your branch with “former or survivor”. The
balance in the account is Rs 80,000/-. The branch received an
attachment order from ITO for recovery from Mr Nikku, an
amount of Rs 1.00 lac. Mr. Mikki claims that the total balance in
the account belongs to him only; he has added the name of Mr
Nikku to avoid any complication in case of his death. Please
discuss.
Answer:
The bank has to attach 50% of the amount available in the account
and will pay it to ITO. In the absence of any specific instructions,
in a joint account it is presumed that each account holder has an
equal share. In this case, the bank is not concerned as to whom the
money belongs to.
24. Pandey and sons, a HUF concern has been maintaining a
CA in your branch for the last 5 years. The Karta of the HUF
wants a loan for expansion of the family business. Please
discuss.
Answer:
The Karta has the absolute authority to obtain any loan for the
benefit of family business. Karta doesn’t require any consent from
the other coparceners of the family. He can also create valid
charge on the ancestral property. However, liability of the
coparceners is restricted to their share in the ancestral property,
and they are not liable personally.
25. Mr. Verma is a power of attorney holder of your s/b a/c
customer Mr. Sharma. Your branch receives a cheque of Rs
10,000 drawn by Mr Verma. In the meantime, your branch got a
confirmation regarding death of Mr Verma. Please discuss,
whether branch will pay the cheque drawn by Mr Verma or not.

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 Answer:
In this case, since Mr Sharma is still alive and Mr Verma had
signed the cheque on behalf of the customer, the payment of this
cheque will be a payment in due course and the bank will get
protection. On the death of power of attorney holder (i.e. agent)
the authority given by the customer (i.e. drawer) is never affected.
26. Your branch has a fixed deposit in the name of A and B
payable to either and survivor. After some day they came with a
request to replace the name of A with C. Again, after some day
they came with a request to replace the name of B with D. Please
discuss.
Answer:
Name of at least one original party should always be there to keep
the contract intact. Bank can replace the name of A with C. But
cannot replace the name of 2nd original depositor B with D.
27. Mr. Raju and Mr. Bunty have been maintaining a current
account as “former or survivor”. One day Mr. Bunty informed
your branch that Mr. Raju has given a high value cheque to a
charitable trust. Mr. Bunty wants to stop the payment of the said
cheque. Please discuss.
Answer:
In case of mandate “former or survivor”, the former has absolute
authority to operate the account during his lifetime. The other
person, i.e. survivor cannot intervene, nor can he stop the
payment. Therefore, the bank will not stop the payment of the
cheque.
28. Mr. Saha and Mr. Sen have been maintaining a current
account as “former or survivor”. They have also done
nomination in the name of Mr. Sengupta. One day Mr. Sengupta
came to your branch with a death certificate of Mr. Saha and

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 requested to make the payment of the balance amount to him
being the nominee in the account. Please discuss.
Answer:
In case of mandate “former or survivor”, the nominee comes into
picture only on the death of both the former and survivor. In this
case after death of Mr. Saha, the survivor Mr. Sen has the absolute
authority to deal with the balance in the account. He can not only
close such accounts, but also change the nomination.
29. Mr. Kumar and Mr. Singh hire a locker in your branch.
Both have done successive nomination in order of priority (i)
Ram (ii) Shyam (iii) Rahim & (iv) Karim. One day Mr. Ram
comes to you with locker key and informs that Mr. Singh has
died. He wants delivery of the contents of the locker. Please
discuss.
Answer:
As per the recent RBI nomination facility in deposit accounts, safe
deposit lockers and articles kept in safe custody with the bank’s
directions,2025 & The Banking Companies Nomination Rules
2025, w.e.f 01.11.2025, the nomination facility is available for sole
and joint locker hirer. The nomination may be made by an
individual or as the case may be, all the individuals together who
hire a locker shall be in favour of one or more individuals not
exceeding four, successively.
In this case in the event of death of one of the locker hirers (Mr.
Singh), access to the locker may be given to Ram jointly with
surviving locker hirer (Mr. Kumar) and liberty to remove the
contents of such lockers.
30. Your branch has sanctioned a Term loan to Mr. Manoj
guaranteed by Mr. Sudhir. As per the request of Mr. Manoj your
branch has rephased the Term loan without informing Mr.

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 Sudhir. Subsequently the Term loan turned into NPA. The
branch recalls the Term loan by issuing notices to Mr. Manoj &
Mr. Sudhir. Please discuss the position of Mr. Sudhir in this
case.
Answer:
Re-phasement of Term loan is a material change and it requires
the consent of both borrower & guarantor. Section 133 of the
Indian Contract Act, 1872 states that a surety is discharged from
their obligations if the terms of contract are changed without their
consent. In this case, branch has rephased the Term loan without
informing Mr. Sudhir, hence he is not liable to repay.
31. Mr. Arvind Kumar, resident of Patna, receives a cheque of
₹2,00,000 “Pay to Arvind Kumar or Order” from ABC Traders.
He endorses it to Mr. Manoj Singh for clearing personal dues.
When Manoj deposits it at SBI Boring Road Branch, Patna,
cheque returns due to signature mismatch.
Answer:
As per Sec. 15 & 16 of NI Act 1881, endorsement transfers title to
the endorsee. Mr. Manoj becomes holder-in-due-course since
consideration exists. Bank returned cheque due to signature
mismatch which is a valid reason under Sec. 89 NI Act. Bank acted
in good faith and exercised due diligence. Responsibility lies with
drawer, not bank. Manoj can take legal action for dishonour under
Sec. 138 NI Act. Bank must issue a dishonour memo & record in
return register. No bank liability arises as no negligence
established. Staff must ensure system signature verification and
avoid payment risk.
32. Mrs. Priya Sinha from Ranchi buys a DD of ₹50,000 for
JNU Delhi fees. She loses it during travel and requests duplicate
from SBI Ranchi Main Branch.

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 Answer:
Under Sec. 45A of NI Act, bank may issue duplicate DD after
ensuring original is unpaid. Customer must submit written request
& indemnity bond. Bank must mark stop payment on original DD.
Identity & DD details must be verified via CBS. Bank must
revalidate validity and issue duplicate marked “Duplicate”.
Charges as per SBI schedule to be collected unless exempt as per
rule. If original later presented, payment must be declined. Bank’s
instrument-loss guidelines to be followed. Proper record keeping
prevents fraud.
33. Mr. Suresh Sharma of Lucknow holds savings account at
SBI Hazratganj with ₹1,20,000 and has overdue OD of
₹1,15,000. He refuses repayment and demands full withdrawal.
Answer:
General Lien – Indian Contract Act, 1872 Section 171, bank has
general lien over securities & deposits. Right of set-off permitted
when both accounts under same name & capacity. Bank may debit
the savings account to clear OD dues. Customer should be
informed before debit is exercised. Balance, if any, can be allowed
to withdraw. Account remarks & system entries must be recorded.
Action is legally valid and protects bank’s interest.
34. Court issues Garnishee Order against Mr. Rohan’s Current
Account balance ₹80,000. His FD ₹2,00,000 lien marked against
loan also exists.
Answer:
Garnishee Order attaches only available credit balance. Bank
must freeze ₹80,000 in current account. FD cannot be attached
since lien already exists in bank’s favour. Prior claim of bank
prevails as per General Lien – Indian Contract Act, 1872 Section
171. If account is joint, order applies only if all names are same.

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 Bank should acknowledge court & inform customer. Follow Civil
Procedure Code, 1908, Order 21 Rule 46.
35. Tax Authority issues attachment on Mr. Aditya’s savings
account having ₹25,000. He deposits ₹50,000 after order and
demands withdrawal.
Answer:
Attachment applies to present and future credits. Bank must freeze
both existing & subsequent deposits. Attachment Order is issued by
Govt./Tax authority. Under Income-tax Act/Revenue Recovery,
bank is bound to comply. Customer cannot withdraw. Bank must
intimate customer and authority. Release only after revocation
letter. Non-compliance may cause penal action on bank officials
and bank will be treated assessee in default.
36. Mr. Vivek finds a bearer cheque on road and presents to
bank.
Answer:
He not holder-in-due-course Sec. 9 NI Act. Bank should verify
identity & genuineness. Bearer cheque payable to bearer is
negotiable by delivery (Sec. 85(2) NI Act). “Once a bearer, always
a bearer.” However, suspicion of lost cheque must be handled
carefully. Obtain declaration & confirm with drawer if doubt
exists. Follow KYC & AML guidelines. Act in good faith to protect
bank from liability.
37. Mr. Amit brings crossed A/C Payee cheque of ₹70,000 at a
SBI branch and seeks cash.
Answer:
Crossed A/C Payee cheque must be credited to payee account only.
Prohibited for cash payment under Sec.123-131 NI Act. Bank
explains rule and requests deposit. Prevents fraud and third-party
misuse. Cash payment would expose bank to loss. Audit and

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 compliance must be ensured. Bank avoids risk under Sec. 129 –
The paying banker is liable to the true owner for any loss if the
payment is not made in due course.
38. Mrs. Kumud Lata, senior citizen from Delhi, issues cheque.
Due to illness her signature differs slightly, cheque returned.
Answer:
Bank must honour only if signature matches mandate. Returning is
correct as per NI Act Sec. 87 & 89. Customer must update fresh
specimen with medical note. Bank may mark “variation allowed”
in genuine case (senior citizens). Maintain audit trail & KYC
record. This protects bank from fraud liabilities.
39. Mr. Ajay Mehrotra from Kanpur gives cheque ₹75,000 to a
contractor but later calls SBI branch to stop payment citing
dispute in work.
Answer:
Customer right to stop payment allowed before cheque
presentment. Bank must register request & block payment
instantly. Written confirmation to be obtained. Contractor may
take legal action under Sec.138 NI Act if cheque bounced
intentionally. Bank must act impartial and follow due process.
Documentation critical for audit trail. System must reflect stop-
payment flag. Bank has no liability if instruction followed
correctly.
40. Mr. Rahul Jain of Ahmedabad issues cheque ₹90,000 to
supplier Mr. Kiran. Account had only ₹30,000. Bank returns
cheque “Funds insufficient”.
Answer:
Dishonour due to insufficiency is valid under clearing rule. Bank
has no liability, where funds inadequate. Mr. Kiran can take legal
remedy under Sec. 138 NI Act. Bank has no liability where

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 insufficient funds. Liability lies with drawer. Issue cheque return
memo. Payee may take legal action under Sec. 138 NI Act. Bank
must maintain return register & documentary proof.
41. Mr. Rafique Siddiqui from Bhopal loses cheque book with
one cheque already issued but unpaid. He visits SBI Branch.
Answer:
Bank must mark immediate stop payment in CBS. Take written
request & ID proof. Issue new cheque book with caution note. If
cheque later presented, reject payment. Customer may be advised
to lodge normal police complaint. All steps recorded in CBS &
branch register as per Bank’s Fraud Prevention Guidelines.
42. Cheque of Mr. Tarun Sharma has overwritten date. He
requests passing it.
Answer:
Material alteration invalidates cheque under Sec. 87 NI Act. Bank
must return with reason “alteration”. Customer must issue fresh
cheque. Avoids legal & fraud risk. Bank staff must follow system
alerts and CBS rules.
43. ABC Charitable Trust account at SBI Pune, trustee Mr.
Rakesh attempts withdrawal for personal use.
Answer:
Trust funds cannot be used personally; governed by Indian Trust
Act 1882. Bank must reject transaction & inform other trustees.
KYC & trust deed clauses examined. Possible breach of fiduciary
responsibility. Maintain reporting record to audit. Bank duty to
protect beneficiary interest.
44. Joint account “Either or Survivor” at SBI Chandigarh.
Husband dies, wife requests full payment.

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 Answer:
Under E-or-S mandate, survivor has rights. Obtain death
certificate & update account. Delete deceased name & continue
account. If dispute from heirs, keep funds on hold. Bank’s claim
settlement instructions followed.
45. HUF account at SBI Surat, Karta Mr. Mahesh dies. Elder
son demands signing authority.
Answer:
New Karta to be appointed by all coparceners. Obtain family
declaration and KYC. Update CBS mandate. Follow Hindu
Succession Act rules and bank’s HUF guidelines.
46. Customer deposits ₹9 lakh cash multiple times monthly at
SBI Kolkata, staying below ₹10 lakh.
Answer:
Pattern indicates “structuring” to avoid reporting. File Suspicious
Transaction Report (STR) to FIU-IND under PMLA 2002. Do
enhanced due diligence. Do not inform customer (tipping off
prohibited). Risk-based monitoring essential.
47. Mrs. Reena claims jewellery missing from locker at SBI
Lucknow branch.
Answer:
Bank is not aware of locker contents, not insurer. Check locker
log, CCTV as per RBI Locker 2021 Guidelines. Assist police FIR.
If negligence proven (e.g., locker tampered), compensation rules
apply. Maintain safety audit.
48. Mr. Joseph deposits property papers for safe custody at SBI
Goa. Now lost receipt.

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 Answer:
Verify identity, match signatures. Take indemnity & police
declaration if needed. Retrieve article in customer’s presence.
Bank acts as bailee under Sec.148 Indian Contract Act, 1872.
49. A minor account at SBI Chennai turns 18, mother wants to
operate as guardian.
Answer:
Guardian mandate ends automatically at majority. Fresh KYC &
signature required from now major. Issue new cheque book &
update profile.
50. At SBI Mumbai, a cheque for ₹1,85,000 is paid. Later
customer claims signature forged.
Answer:
Bank liable if negligence proven. Refund immediately after
investigation. Report fraud & file FIR. NI Act Sec.85 (Paying
banker is protected by payment in due course) & 89 (Paying
banker gets protection where a cheque is materially altered but
does not appear to have been altered-Obliterated Cheque) also
applies. Update internal fraud system & KYC review.
51. Mr. Adil Khan, residing at Sadar Bazaar, Meerut, visits SBI
Begum Bridge Branch with 850 grams gold demanding ₹20 lakh
gold loan. He is unemployed, no income proof. Jewellery looks
new, no bill, and customer avoids questions. Branch officer
suspects benami/hawala linked gold.
Answer:
As per Gold Loan Circular & PMLA 2002, verify source of gold &
KYC. Conduct purity test, get declaration of ownership. High-
value gold without source proof may be money laundering red
flag. Bank must file STR (Suspicious Transaction Report) with

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 FIU-IND. Reject loan if doubt persists to avoid AML breach.
Comply with KYC Master Direction & AML risk mitigation.
52. SBI Guwahati GS Road Branch receives a phone call from
a police constable demanding freezing of account of Mr. Arvind
Nath, resident of Silpukhuri, Guwahati, claiming account is
under investigation. No written notice given.
Answer:
As per Sec. 102 CrPC (Code of Criminal Procedure, 1973) police
can freeze account only via written order. Bank cannot freeze only
on telephonic/verbal instructions. Request written order from
competent police officer. Non-compliance may cause violation of
customer rights. If formal notice arrives, freeze the account
instantly. Communicate freeze to customer as per RBI/ CrPC rules.
53. Mrs. Annapurna Devi, age 74, resident of Ashok Nagar,
Bhopal, visits SBI MP Nagar Branch for interest certificate and
alleges rude behaviour by teller staff.
Answer:
Respect & priority mandatory under SBI Senior Citizen Service
Charter. Apologize & assist immediately. Take written complaint,
record in CMS. Provide dedicated help desk/priority queue as per
Bank guidelines. Brief staff on behavioural standards. Reinforce
empathy and sensitivity instructions.
54. RTGS of ₹4 lakh mistakenly credited to Mr. Sunny Jha,
Ranchi at SBI Harmu Road Branch. Remitter requests reversal
but Sunny refuses.
Answer:
As per RBI Payment & Settlement Act, reversal needs beneficiary
consent. If beneficiary refuses, remitter files complaint / FIR. Bank
informs both parties formally. On legal direction, hold/ debit
funds. Document in CBS & inform controller.

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 55. SBI Hazratganj Branch, Lucknow receives a CTS inward
cheque of ₹4,50,000 from account of Mr. Karan Pratap Singh,
64/12 Aliganj, Lucknow. The cheque appears normal but the
image of payee name in CTS screen shows possible digital
alteration. Clearing house has already passed it. Presenting bank
has raised no objection. Karan denies issuing cheque to the
payee seen on screen.
Answer:
Cheque tampering suspicion falls under RBI CTS 2010 &
Prevention of Banking Fraud guidelines. Bank must treat image
mismatches as high risk. Under NI Act Sec 87 (Material alteration
of Negotiable Instrument renders it void) the cheque is invalid if
alteration done. Branch must verify physical cheque and contact
drawer immediately. If tampering confirmed, cheque must be
returned under “Alteration / fraud suspected”. If already paid,
bank may bear loss if negligence proven. Section 89(2) of the NI
Act deals with electronic image of a truncated cheque and states
that any difference in the apparent tenor between the electronic
image and the original physical cheque is a material alteration. It
is the bank or clearing house’s duty to ensure the electronic image
is an exact replica during the truncation and transmission process.
56. Ms. Nisha Chaturvedi, resident of Pune, reports ₹1,20,000
unauthorized debit via phishing link. She claims no OTP was
shared intentionally. She demands entire money back from her
SBI Branch, claiming the bank failed cybersecurity checks.
Answer:
Under RBI Digital Transaction Customer Protection Rules, OTP
sharing is the customer liability. Bank must first check logs, device
ID, IP, and OTP validation. If OTP/PIN was shared by customer,
it is "customer negligence". Bank should register complaint in

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 CMS portal & assist filing Cyber FIR. Block net banking
immediately & update risk flag. Return of money possible only if
no customer negligence has been found.
57. ABC & Co. is a partnership firm with three partners—A, B,
and C—operating a Cash Credit (CC) account with XYZ Bank.
The CC outstanding at close of business on Day 0 is ₹9,00,000.
On the morning of Day 1, partner B unfortunately passes away.
On Day 2 at 10:00 a.m., the firm deposits ₹5,00,000 into the CC
account. At 11:00 a.m. (one hour later), a cheque of ₹5,00,000
drawn on the CC account is presented and paid by the bank. On
Day 3 evening, B’s legal heirs visit the bank and ask: “What is
the liability attributable to B’s estate that we should settle?” The
partnership deed clearly states that all liabilities are to be shared
equally (33% each) among partners.
Answer:
Under the Rule in Clayton’s Case (FIFO principle), the ₹5,00,000
deposit on Day 2 at 10:00 a.m. is first appropriated against the
oldest debit, i.e., the pre-death balance of ₹9,00,000. Therefore,
the pre-death liability reduces to ₹4,00,000. The ₹5,00,000
withdrawal at 11:00 a.m. occurs after B’s death, and such post-
death liability cannot be charged to B’s estate; it must be borne by
the surviving partners A and C.
Normally, without any partnership deed clause, B’s estate would
be liable for the entire pre-death reduced balance of ₹4,00,000.
However, the partnership deed expressly states equal liability
(33%-33%-33%), therefore B’s estate is liable only for his one-
third share of the surviving pre-death balance. Thus, B’s estate’s
liability = ₹4,00,000 × 1/3 = ₹1,33,333 (approx). The balance pre-
death liability will be apportioned equally to partners A and C.

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 The analysis aligns with Sections 59–61(Appropriation of payment
when several debts are owed) of the Indian Contract Act, 1872 and
Sections 25 & 42(Death, insolvency etc of a partner dissolves the
partnership) of the Partnership Act, 1932. It also aligns with NI
Act, 1881, Section 31 regarding a bank’s duty to honour cheques
until notice of death.
If the bank had received prior notice of B’s death, it should not
have honoured the ₹5,00,000 cheque, as post-death cheques
should not be paid once a bank is aware; paying after notice may
make the bank personally liable and prevent recovery from the
estate. In that scenario, the ₹5,00,000 deposit would still reduce
the balance to ₹4,00,000, but no post-death debit would occur,
keeping the account balance at ₹4,00,000. Accordingly, B’s estate
would still owe ₹1,33,333, but the bank would also protect itself by
freezing operations pending settlement.
Thus, with FIFO application, equal-share clause, and banking
due-diligence rules, the liability of B’s estate is ₹1,33,333, and the
bank must ensure cheque cessation once a partner’s death notice is
received.
58. A charge of corruption is levelled against Service
Manager/Field Officer by an RTI activist, what would be your
course of action?
Answer:
Upon receipt of a corruption allegation, immediately report the
matter to the Regional Office and Vigilance Department as per
CVC Guidelines and the Bank’s Vigilance Manual. Do not ignore
or suppress the information and will initiate a preliminary fact-
finding inquiry as per the bank’s Conduct, Discipline & Appeal
Rules. All system logs, branch records, emails, CCTV footage and
customer complaint data will be preserved as per Information

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 Security & Record Preservation Policy. If prima facie substance
exists, a detailed vigilance investigation and disciplinary process
will be recommended. RTI response will be sent to the Regional
Office in line with the RTI Act, 2005, avoiding disclosure of any
“information which may impede the investigation” under Section
8(1)(h). The officer will be shifted to a non-sensitive role pending
enquiry. Throughout, natural justice will be ensured and the
branch's reputation safeguarded. Preventive controls and
awareness will also be reinforced at branch level.
59. NRI account in the name of X operated by Power of
Attorney holder Y a resident. X dies on 05.11.2025 and cheque
dated 01.11. 2025 is received on 06.11.2025. PoA holder desires
that the cheque be paid, please discuss.
Answer:
As per Indian Contract Act, 1872 Sec. 201, a Power of Attorney
automatically terminates on the death of the principal or the
attorney holder. Upon receiving information of the death, the bank
must immediately freeze the operations. Even if the cheque is dated
before death, mandate ceases once the bank is aware of death,
hence cheque should not be passed. The cheque will be returned
with reason "drawer deceased/mandate revoked". The request for
urgent payment cannot be accepted once legal termination of
mandate has occurred. CBS will be marked “deceased customer”,
and operations restricted to settlement only.
60. Mr and Mrs Rajesh have a term deposit ₹25,00,000 “either
or survivor”, they also have a joint safe-deposit locker. Mrs
Rajesh says the bank that they are separating. Mr Rajesh asks
bank to close the TDR and be paid—what will you do?

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 Answer:
The TDR mandate is Either or Survivor, but premature closure
usually requires signatures of all depositors unless otherwise
authorized by mandate. Since wife has expressed a dispute, first
verify original mandate and other details. Separation without court
order does not alter mandate, no unilateral change is permitted.
Advise both parties to mutually decide or obtain legal orders. For
the locker, operations remain as per the existing mode
(jointly/either) until both agree to change, due to dispute risk,
advise them to operate jointly or obtain court directions. Maintain
neutrality and provide a written speaking note of the decision.
61. Mr X guaranteed the cash-credit facility of ₹50 lakh to Mrs
Rani, later the CC was converted to a term loan of ₹25 lakh and
a bank guarantee of ₹25 lakh was issued, the account turned
irregular and was recalled, guarantor (Mr X) claims he is not
liable. Please discuss.
Answer:
As per Indian Contract Act, 1872 Sec.128, guarantor’s liability is
co-extensive with borrower unless otherwise specified. Also, if the
guarantee deed contains continuing guarantee and consent-to-
variation clauses, conversion from CC into TL + BG remains
binding. However, Sec.133 Indian Contract Act, 1872 states that
material change in contract without guarantor’s consent can
discharge him, so documentation must be verified. If guarantee
agreement clearly covers renewals, restructuring, enhancements
and changes in credit facility, guarantor remains liable. If not,
legal opinion may be required regarding discharge extent. Since
account is irregular, notice to guarantor invoking the guarantee
must be issued. Action under SARFAESI/DRT/Civil suit as
applicable may be initiated. Revival letter/acknowledgement of

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 debt should be obtained to preserve limitation. Bank must
document actions and ensure no security impairment occurred.
62. Mr X, Y, Z are partners (capital ratio 30%/50%/20%)
enjoying CC ₹25 lakh. account becomes overdue at ₹30 lakh and
no stock is found, Mr X wants to leave and offers ₹9 lakh seeking
to be relieved, how will you deal with it?
Answer:
Partners in a firm are jointly and severally liable for all acts of the
firm (Partnership Act, 1932, U/S 25). Retirement does not absolve
prior liabilities, to limit future liability, there must be retirement
with the bank’s consent and public notice, and fresh documents
from continuing partners. Given the CC is overdrawn do not
release Mr X from liability merely for ₹9 lakh. However, any
partial payment by Mr X should be taken “without prejudice” and
not treated as release unless sanctioned by authority and
supported by a binding settlement.
63. Borrower has only laminated title deed relating to his house
property and wants to create an equitable mortgage, how will you
complete the formalities before disbursement?
Answer:
Equitable mortgage requires deposit of original title deeds under
Transfer of Property Act, 1882 Sec.58(f). Laminated copies or
photocopies are not acceptable as originals. Customer must
produce original title chain, legal search report and property
tax/utility records. Legal and valuation reports must be obtained
as per bank policy. If originals are lost, FIR, public notice,
newspaper publication and certified copies are required, and bank
may opt for registered mortgage instead, based on legal opinion.
CERSAI registration must be completed. Loan shall not be

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 disbursed until mortgage is properly created and documents stored
in dual custody.
64. An unknown customer deposits cash in which 6 forged
notes are detected, he requests return of the forged notes, and the
cashier is not sure about the bank’s instruction, what is your
advice as Branch Manager?
Answer:
As per RBI Master Directions on Detection and Impounding of
Counterfeit Notes, forged notes must not be returned. Notes must
be impounded, stamped “Counterfeit”, and recorded in the
Counterfeit Note Register. Customer must be issued Counterfeit
Note Receipt. Information must be forwarded to police or nodal
branch based on threshold rules. Bank cannot credit any value for
counterfeit notes. Staff returning forged notes commits violation
and may face disciplinary action. Educate customer and staff on
RBI guidelines. CCTV and Branch reports will record event for
audit.
65. A loan is outstanding secured by a personal guarantee,
despite reminders it’s unpaid. The bank decides to adjust through
the balance lying in the guarantor’s current account by applying
right of set-off to prevent NPA, discuss the position.
Answer:
A banker’s general lien arises under the Indian Contract Act,
1872, Section 171, allowing retention/appropriation of a
customer’s funds, in addition, contractual right of set-off is usually
embedded in the guarantee and account opening documents.
Mutuality is required for set-off; once the guarantee is invoked and
demand is made on the guarantor, the guarantor’s liability
becomes due and payable (as per Indian Contract Act, 1872
Sec.128, guarantor’s liability is co-extensive with borrower unless

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 otherwise specified) creating mutuality with his own account.
Therefore, after serving a written demand/invocation on the
guarantor and giving a reasonable notice of appropriation, the
bank may set-off the credit balance in his current account against
the guaranteed debt. Record the invocation, the appropriation
entry, and send a post-debit intimation.
66. Mr. X wants to nominate his four sons in his Savings Bank
Account. He approaches your branch and asks you to do the
same. He also wants to know whether any of his four sons will be
eligible to claim the amount as a nominee after his death. He
further wants to know what will happen if he forgets to give
priority to his son's name. First, he wants to nominate his four
sons in order of their age, which means his elder son will get the
first priority, then the next son, after that the next one, and
finally the youngest son. Each will get 100% share successively.
Please discuss the situation and tell us how you can help Mr. X
in this regard.
Answer:
Where the nomination is made successively in favour of more than
one person, the nomination shall be effective only in favour of one
person in the order of priority specified. In case successive
nomination is selected, then more than one nominee will be
allowed with each having a 100% share one after another.
If the nomination is made in favour of more than one person
successively, the nomination shall be effective only in favour of one
person in the following order of priority:
1. Nomination of the first nominee shall be effective if that nominee
survives the person who made the nomination.

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 2. Nomination of the second nominee shall become effective only
after the death of the first nominee.
3. Nomination of any nominee lower in the order shall become
effective only after the death of all nominees whose names are
higher in the order of nomination.
Where the order of nomination is not mentioned, persons shall be
deemed to have been nominated in the order in which their names
appear in the nomination form. Mr. X will be advised according.
(Please refer Sections 45-ZA, 45-ZC and 45-ZE read with Section
56 of the Banking Regulation Act, 1949 and rules 2 to 4 of the
Banking Companies Nomination Rule 2025).
67. Mr. Mohan wants to nominate his four daughters in his
savings account in the proportion of 40:20:20:20. He wants to
know what will happen if any of his nominees dies before him.
Mr. Mohan is also maintaining a safe deposit Locker, and he
wants to nominate his four daughters in the locker in the same
manner, i.e., in the proportion of 40:20:20:20 simultaneously.
Discuss in detail and explain how you can help Mr. Mohan in
this regard.
Answer:
Where the nomination is made simultaneously in favour of more
than one person, the nomination shall be effective in favour of all
such persons in the proportion declared, and the following terms
and conditions shall apply:
1. Nomination shall not be made in favour of more than four
persons.
2. The nomination shall clearly specify the proportion of the
deposit amount in percentage in favour of each nominee.
3. The nomination shall cover the entire deposit amount.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 133 | P a g e
 4. If any nominee dies before receiving the deposit from the bank,
the nomination in favour of such deceased nominee alone shall
become ineffective and the share of that deceased nominee shall be
treated as if nomination had not been made for that portion of the
deposit.
5. Either Simultaneous or Successive nominations are allowed for
deposit accounts.
In this case, Mr. Mohan wants a simultaneous nomination for his
savings account, which is permissible as per rules. However,
simultaneous nomination is not applicable for safe custody articles
or safe deposit lockers. Therefore, Mr. Mohan should be advised
that while he can nominate his four daughters simultaneously for
his savings account in the ratio 40:20:20:20, the same facility is
not available for lockers. He must follow the Successive Locker
Nomination rules accordingly.
68. Mr. Adhikari is a savings bank account holder of your
branch. He is maintaining a good balance in his savings bank
account. One day, he approaches with a request that his only son
is a minor. He is in a dilemma whether he can nominate his
minor son in his savings bank account, or as he is one of the
members of a trust, whether he can nominate his trust account in
his savings bank account. He approaches you for a solution and
he wants nomination facility in his savings bank account. You
are a Service Manager of that branch. Please discuss how will
you help Mr. Adhikari in this regard.
Answer:
Nomination shall be made only in favour of individuals, as such a
nominee cannot be an association, trust, society, or any other
organisation or any office bearer thereof in his official capacity. In
view thereof, any nomination other than in favour of an individual

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 134 | P a g e
 will not be valid. He can nominate his minor son as nominee; only
thing he has to take care is that when the nominee is a minor, the
depositor, while making the nomination, must appoint another
individual, not being a minor, to receive the amount of the deposit
on behalf of the nominee in the event of the death of the depositor
during the minority of the nominee. Mr. Adhikari will be advised
accordingly, and he can nominate his minor son with appointment
of an individual who is not a minor to receive the amount of
deposit on behalf of the nominee in the event of his demise.
69. Mr. Ramesh Das is a senior citizen he is having savings
bank account in your branch he has availed himself nomination
facility from your branch, now he wants that name of the
nominees to be displayed on the passbook and statement of
account. You are posted as a service manager of that branch,
please discuss how you can help Mr Ramesh Das in this regard.
Answer:
1. Whenever nomination facility is availed by a customer on any
account, the fact has to be indicated in his passbook or statement
of account as a legend "Nomination Registered" indicating the
position regarding availment of nomination facility, so that in case
of death of the account holder, the relatives can know from the
passbook or statement of account that the nomination facility has
been availed of by the deceased depositor and initiate suitable
action.
2. RBI has advised banks to indicate the name of the nominee(s) in
the passbook or statement of accounts/TDR/STDR advice. Mr
Ramesh Das will be advised accordingly, and as per his request,
the name of his nominee(s) will be displayed on the passbook and
statement of account accordingly.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 135 | P a g e
 70. Mr. Dinkar, Karta of a HUF, is maintaining a HUF
account in your branch. He wants nomination facility in the
HUF account. As a Branch Manager, please discuss how you
can help Mr. Dinkar in this regard.
Answer:
Nomination facility is available on all deposit accounts, such as
savings bank accounts, safe deposit lockers, safe-custody articles,
and deposits held in the name of sole proprietary concerns.
Nomination can be made only in respect of deposits held in an
individual capacity of the depositor and not in any representative
capacity, as a holder of an office or otherwise. Further,
nomination should not be made in favour of non-individuals. In
this case, nomination cannot be made in a HUF account. Mr.
Dinkar will be advised accordingly.
71. Mr. Ram Singh comes to your branch stating that his
father, Mr. Ratan Singh died last month. Shri Ram Singh said
that the balance in his deceased father’s account in total is
₹14,50,000. He wants to settle that claim as there is no
nomination in the account. As a Service Manager, please help
Mr. Ram Singh to settle his deceased father’s estate.
Answer:
In this case, settlement of claims without legal representation in
respect of the balance held in the accounts of deceased
constituents will be applicable where no nomination is registered,
and if the amount claimed (i.e., Total Balance + Interest) up to
₹15.00 lakhs. Shri Ram Singh is required to submit the following
documents for settlement of the claim:
1. Photocopy of the Death Certificate — original to be verified by
the bank.
2. KYC documents of the legal heirs.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 136 | P a g e
 3. Account details of the claimants (if available).
4. Application form for settlement of claim of deceased constituents
for payment of balance in accounts, duly filled and signed by all
the claimants other than those who have signed the Letter of
Disclaimer.
5. Declaration in the claim form regarding the legal heirs of the
deceased, to be signed by:
(a) One independent person well known to the family of the
deceased but unconnected with it, and acceptable to the bank; or
(b) Any account holder of the bank (KYC-complied), known to the
family of the deceased but unconnected with it; or
(c) Any Government official whose signature is verifiable by the
bank.
6. Stamped Letter of Indemnity from the claimants.
7. Letter of Disclaimer, if applicable.
On behalf of the bank and the branch, we will also express our
condolences on the sad demise of his father. Shri Ram Singh will
be requested to submit the above-mentioned documents at the
earliest to enable the bank to settle the deceased’s claim promptly.
72. Shri Shambhu Kumar comes to your branch stating that his
father, Mr. Aman Kumar died last month. Shri Shambhu Kumar
said that the balance in his deceased father’s account is a total of
₹18,75,000. He wants to settle that claim as there is no
nomination in the account. As a Service Manager, please help
Mr. Shambhu Kumar to settle his deceased father’s estate.
Answer:
In this case, settlement of claims without legal representation in
respect of the balance held in the accounts of deceased
constituents will be applicable where no nomination is registered,

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 137 | P a g e
 and if the amount claimed (i.e., Total Balance + Interest) exceeds
₹15.00 lakhs.
Shri Shambhu Kumar has to submit the following documents:
1. Photocopy of the Death Certificate (original to be verified by the
bank).
2. KYC documents of the legal heirs.
3. Account details of the claimants, if available.
4. Application form for settlement of claim of deceased constituents
for payment of balance in accounts, duly filled and signed by the
claimants (other than those who have signed the Letter of
Disclaimer).
5. Declaration in the claim form regarding the legal heirs of the
deceased, has to be sworn as an affidavit before the Judicial
Magistrate or Notary Public as per format C.O.S-539 as under:
(a) One independent person well known to the family of the
deceased but unconnected with it, and acceptable to the bank; or
(b) Any KYC-complied account holder of the bank known to the
family of the deceased but unconnected with it; or
(c) Any Government official whose signature is verifiable by the
bank.
6. Stamped Letter of Indemnity from the claimants and one surety
good for the amount, or two sureties jointly good for the amount.
Any legal heir(s) who has signed the Letter of Disclaimer in favour
of another legal heir(s) may stand as a surety if he or she is
independently good for the claim amount.
7. Letter of Disclaimer, if applicable.
8. Details of sureties with proof, for compilation of the opinion
report on sureties.
Note:

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 138 | P a g e
 In claims without legal representation which exceed ₹15 lakhs, and
where the claimant is not willing to provide third-party indemnity
or surety, the branch shall seek legal representation in the form of
a Probated Will, Succession Certificate, or Letter of
Administration from the claimant.
On behalf of the Bank and the Branch, we will also express our
condolences on the sad demise of his father.
Mr. Shambhu Kumar will be requested to submit the above-
mentioned documents at the earliest so that the deceased’s claim
can be settled expeditiously.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 139 | P a g e
 BUSINESS/OFFICE CORRESPONDENCE

1. A customer has sent you an e-mail through his/her official e-

mail ID, requesting you to transfer his/her account to another
branch of SBI. Send a reply to the customer after doing needful.

Mr. /Mrs. ABC Date:

Address_______________
______________________

Madam/Dear Sir,

Subject: Transfer of account

Namaste/Greetings from State Bank of India.

We acknowledge receipt of your e-mail dated _______requesting for transfer of account

number ____________to our_______ branch.

We are pleased to inform you that CIF and all the related accounts have been transferred
to our_____________ branch as per your request.

We value your relationship with us. In case of any query or further information, please
feel free to contact us/get in touch with us_____________ (branch email ID & contact
No.).

We thank you for banking with us and assure you our best services.

Yours sincerely,

Branch Manager
Name___________________
Contact details____________

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 140 | P a g e
 2. A dissident customer has sent you a letter asking certain debit in
his/her account, however on enquiry it has been observed that
the debit was for certain specified charges. Send a suitable reply.

Mr. /Mrs. ABC Date:

Address_______________
______________________

Madam/Dear Sir,

Subject: Debit of chargers

Namaste/Greetings from State Bank of India.

With reference to your e-mail dated _______seeking details of a debit entry of

Rs_________ dated____________ in your account number_____________.

We wish to inform you that the debit amount of Rs_______ is towards/in

respect___________ charges for the year __________ along with applicable taxes.

You may also visit our website https://bank.sbi under “Information and Services” tab to
know more about service charges applicable in various accounts.

We value your relationship with us. In case of any query or further information, please
feel free to contact us/get in touch with us_____________ (branch email ID & contact
No.).

We thank you for banking with us and assure you our best services.

Yours sincerely,

Branch Manager
Name___________________
Contact details____________

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 141 | P a g e
 3. A customer has sent you a letter that he is out of town and
unable to operate his savings account through
cheque/INB/YONO/ATM etc. On enquiry it has been observed
that the savings account is under inoperative status. Send a
suitable reply.

Mr. /Mrs. ABC Date:

Address_______________
______________________

Madam/Dear Sir,

Subject: Activation of Inoperative account

Namaste/Greetings from State Bank of India.

With reference to your e-mail dated _______advising us to enable transactions in your

account number________________. It has been observed from our record that, at present
the account is under inoperative status.

You are, therefore, requested to visit the branch on any working day as per your
convenience along with the following KYC documents.
1. Proof of address 2. Proof of Identification 3. Colour photographs.

We value your relationship with us. In case of any query or further information, please
feel free to contact us/get in touch with us_____________ (branch email ID & contact
No.).

We thank you for banking with us and assure you our best services.

Yours sincerely,

Branch Manager
Name___________________
Contact details____________

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 142 | P a g e
 4. A customer has sent his/her KYC details through his/her official
e-mail ID, requesting you to update in the system. Send a reply to
the customer after doing needful.

Mr. /Mrs. ABC Date:

Address_______________
______________________

Madam/Dear Sir,

Subject: KYC Updation

Namaste/Greetings from State Bank of India.

We thank you for your e-mail dated _______forwarding the Know Your Customer
documents in respect of your account number___________.

We are pleased to inform you that KYC has been updated in your account.

We value your relationship with us. In case of any query or further information, please
feel free to contact us/get in touch with us_____________ (branch email ID & contact
No.).

We thank you for banking with us and assure you our best services.

Yours sincerely,

Branch Manager
Name___________________
Contact details____________

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 143 | P a g e
 5. A pensioner of your branch has sent you a letter asking the
procedure for submission of Life Certificate without visiting the
Home Branch. Send a suitable reply.

Mr. /Mrs. ABC Date:

Address_______________
______________________

Madam/Dear Sir,

Subject: Life Certificate submission

Namaste/Greetings from State Bank of India.

We acknowledge receipt of your e-mail dated__________ requesting us to advice the

procedure for submission of Life Certificate without visiting the Home Branch.

In this connection, we wish to inform you that you can use any of the following options
to submit your Life Certificate without visiting the home branch.

1. You can visit any branch of SBI, convenient to you and submit your life certificate
thereat against acknowledgement. 2. You can also submit your life certificate through
https://jeevanpramaan.gov.in 3.You can avail our Doorstep Banking Services. 4. Life
certificate can also be submitted through https://www.pensionseva.sbi/VideoLC.

We value your relationship with us. In case of any query or further information, please
feel free to contact us/get in touch with us_____________ (branch email ID & contact
No.).

We thank you for banking with us and assure you our best services.

Yours sincerely,

Branch Manager
Name___________________
Contact details____________

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 144 | P a g e
 6. You are the Branch Manager of a Metro branch. It has come to
your notice that one of your HNI customers has applied for a
home loan with a competitor bank. Write a letter to the customer
promoting SBI’s home loan product and requesting them to
consider taking the home loan with SBI.
Mr. /Mrs. ABC Date:
Address_______________
______________________

Madam/Dear Sir,

Subject: Home Loan

Namaste/Greetings from State Bank of India.

We are delighted to inform you that the property you have been looking for purchase
at_______________________ has been recently approved by our Bank. We are extending an
invitation to join State Bank Home Loan family.

We would like to take you through some of the key advantages of availing a home loan from
our Bank:
1. We offer highly competitive interest rates. 2. We offer concessional rates for women and
high-net worth salary account holders. 3. We have multiple home loan products to cater
the wide range of clients. 4. As part of the on-going festivities, we are currently offering a
zero-processing fee.

We would be more than happy to collect the documents for your application for the home
loan at your residence/office as per your convenience.

We value your relationship with us. In case of any query or further information, please feel
free to contact us/get in touch with us_____________ (branch email ID & contact No.).

We thank you for banking with us and assure you our best services.

Yours sincerely,

Branch Manager
Name___________________
Contact details____________

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 145 | P a g e
 7. You are heading a branch, whose premises are bank owned and
is more than 30 years old. The building needs renovation and the
same has been observed and pointed out by the visiting higher
officials. Write a letter to your Regional Manager explaining the
situation and requesting to initiate the process by taking up the
matter with the officials at Local Head Office.

The Regional Manager Date:

State Bank of India
XYZ Region________

Madam/Dear Sir,

Subject: Renovation of the branch premises

With reference to the above, we have to state /we would like to draw your kind attention that
our branch is one the oldest in the city. The branch is located at a prime location and has
accounts of many HNI customers and bureaucrats. Because of the prime location of the
branch and the business profile, the branch is frequently visited by the officials of top
management.

It has been observed by the visiting officials and the customers alike, that the branch
premises need upgraded infrastructure. As per the Bank’s extant instructions, our bank’s
building is due for the renovation. We, therefore, request you to take up the matter with the
Local Head Office, so that the needful can be done.

Yours faithfully,

Branch Manager
Name___________________
Contact details____________

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 146 | P a g e
 8. Write a letter to your Regional Manager, regarding long pending
demand of locally stationed BSF camp Commandant for
Installation of ATM at their camp.

The Regional Manager Date:

State Bank of India

XYZ Region________

Madam/Dear Sir,

Subject: Installation of ATM at ______BSF camp.

With reference to the above, we would like to draw your kind attention towards long pending demand of
installation of ATM at locally stationed BSF campus by BSF commandant.

Recently, the undersigned has visited the office of the Commandant ___________ Bn. BSF and interacted
with Commandant and 2ndofficer-in-charge. During interaction Commandant expressed his displeasure
over abnormal delay in installation of ATM at their BSF campus___________. During course of
discussion, he told us that our competitors are also trying to enter their campus with their ATM machine.
However, BSF officials are still awaiting our response in this regard.

Considering the volume and potential of Personal Segment business available in the campus their demand
for installation of one new ATM machine seems very reasonable and profitable one. Approximately 1500
BSF officials from their battalion are banking with SBI and they are very much interested in our loan
products, digital products, and cross sell products. Under the previously mentioned circumstances we
recommend for early installation of ATM machine at their campus to tap the business potential available
there.

Yours faithfully,

Branch Manager

Name___________________

Contact details____________

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 147 | P a g e
 9. Write a letter to your Regional Manager informing him about the
untoward incident which occurred in your branch today and seek
his guidance.

The Regional Manager Date:

State Bank of India

XYZ Region________

Madam/Dear Sir,

Subject: Untoward incident at branch.

As cited above, we would like to inform you towards an untoward incident which has occurred at
our branch today. One person from outside the branch premises threw a piece of stone toward
our main entrance gate resulting breakage of middle part of entrance gate made of glass. After
throwing stone he tried to escape, but with the help of customers and local police he was caught,
and police personal took him to local Police station.

We seek your kind guidance in the aforesaid matter to proceed further.

This is for your information and necessary guidance please.

Yours faithfully,

Branch Manager

Name___________________

Contact details____________

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 148 | P a g e
 10. You are a Branch Manager of a Scale –IV branch. Write
an explanation letter to your Service Manager for unauthorised
absence from office and handing over to the vault keys to the
outsourced person.
Shri/Smt.___________________ Date:

Designation/P. F______________

State Bank of India

XYZ Branch________

Madam/Dear Sir,

Subject: Unauthorized absence from office & Handing over the vault keys to unauthorised person.

It has come to our knowledge that you were absent from work yesterday and you sent a message through
WhatsApp that you have handed over the joint custodian keys to someone namely XYZ, who happens to
be an outsourced person. This is a complete violation of bank’s prescribed norms and this act of
negligence of yours has been viewed seriously by the competent authority.

2. Accordingly, you are hereby required to submit your reply within 3 days from the date of receipt of this
explanation that why suitable action should not be taken against you for not adhering to the prescribed
norms of the bank in the aforesaid matter.

3. Your reply must reach the undersigned within stipulated time, failing which, it will be presumed that
you have no explanation to offer, and suitable action will be initiated against you as deemed fit.

The receipt of this letter should be acknowledged.

Yours faithfully,

Branch Manager

Name___________________

Contact details____________

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 149 | P a g e
 11. Write a letter to the nearby police station for patrolling
during night time and on bank holidays.
The Officer-In-Charge Date:

___________Police Station

District________________

Madam/Dear Sir,

Subject: Request for Police Patrolling.

With reference to the subject matter, we request you to keep a close vigil of our Branch premises & ATM
especially at night time and during Bank holidays through your Police Patrol party to ensure security.

2. Your kind co-operation in this regard will be highly appreciated.

Kindly acknowledge receipt of this letter for our record. / Receipt of this letter may please be
acknowledged for our record.

Yours faithfully,

Branch Manager

Name___________________

Contact details____________

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 150 | P a g e
 12. Write a letter to your important customers inviting them to
attend “Mega Loan Mela / Trader’s Meet / Pensioner’s Meet etc.

Shri/Smt.___________________ Date:

Address__________________

_________________________

Madam/Dear Sir,

Subject: Mega Loan Mela / Trader’s Meet / Pensioner’s Meet.

We take pleasure to inform you that we are going to organize one “Mega Loan Mela / Trader’s Meet /
Pensioner’s Meet” on __ (date) ___________ from ____ (time) ____________ to _____________ at
____________ (venue). A detailed deliberation of the features of our products and services and its
benefits to the customers will be the core objective of the meeting.

You are cordially invited to attend the aforesaid programme and grace the occasion to make the meet a
great success.

We are looking forward to offering you our best products and services.

We solicit your presence.

Yours faithfully,

Branch Manager

Name___________________

Contact details____________

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 151 | P a g e
 13. As a Regional Manager, send a letter of appreciation to one
of your branch managers for achieving CVE business targets in
recently concluded campaign.

Dear Shri________________ Date:

Subject: CVE Campaign

Letter of Appreciation

We are pleased to inform you that growth in CVE business of your branch for the campaign
period________ has surpassed the targets allotted to your branch. We place on record the appreciation for
the untiring efforts put in by the branch during the campaign period and making it a grand success.

2. I have no iota of doubt that you along with your team will continue to work with same vigour and
would add more feathers to the cap of the branch and the Region.

Wish you and your team good luck in future endeavours.

Yours faithfully,

Regional Manager

Name___________________

Contact details____________

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 152 | P a g e
 14. You are heading a metropolitan branch; a Red Cross
Society wants to organize a Blood Donation Camp. They want
you to sponsor the camp. Write a letter to your controller seeking
his permission to sponsor the camp by the branch.

The Regional Manager Date:

State Bank of India
XYZ Region________

Madam/Dear Sir,

Subject: Sponsoring Blood Donation Camp by the branch

With reference to the above, we have to state /we would like to draw your kind attention that
Red Cross Society at this centre is organizing a Blood Donation Camp in the city next month.
Almost all the hospitals and leading doctors are involved in the camp. The Red Cross Society
has approached us with a request to sponsor the Camp.

This is an opportunity for the bank to be involved in a noble cause and get acquainted with
the leading doctors, hospitals, medical shops, blood donors, NGOs etc., and to tap potential
business. The sponsoring of the Camp may involve an expenditure of around Rs 10,000/-.

As this has the twin benefit of boosting our image in the society and tapping the business
potential, I request your approval to sponsor the Camp and incur the expenditure up to Rs
10,000/-.

Yours faithfully,

Branch Manager
Name___________________
Contact details____________

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 153 | P a g e
 15. Write a letter to your controller asking for additional locker
cabinet.

The Regional Manager Date:

State Bank of India
XYZ Region________

Madam/Dear Sir,

REQUEST FOR ADDITIONAL LOCKER CABINET IN THE BRANCH

With reference to the above we have to advise that presently our

branch is having 10 locker cabinets. We have 411 locker hirers utilizing the service. Recently
the demand for lockers in our centre has steadily increased. Currently the number of
customers who wish to hire a locker stands at 85. We have adequate space in the locker room
to accommodate another locker cabinet. We therefore request you to please approve purchase
of two locker cabinets with the following specifications:

a) Number of Small size lockers – 25

b) Number of Medium size lockers – 15
c) Number of Large size lockers – 10

2. The new locker cabinet will bring high value customers to the books of the branch and as a
result the deposits are likely to grow by around Rs. 10 Crores. Further, for ascertaining the
feasibility of placing the new locker cabinet in the branch premises, we request you to please
depute the Bank Zonal Engineer to the branch for assessment.

We shall be glad if you kindly approve purchase of locker cabinets at the earliest.

Yours faithfully,

Branch Manager
Name___________________
Contact details____________

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 154 | P a g e
 16. Write a letter to customer (Complaint made by NRI
customer regarding delay in service).

Shri/Smt.___________________ Date:

Address___________________

__________________________

Madam/Dear Sir,

DELAY IN ISSUE OF CHEQUE BOOK

We would like to extend our sincere apologies for the inconvenience you experienced in issue of
cheque book. We wish to inform you the snags causing the delay have been rectified and the cheque
book has since been issued and sent by courier to your present address. The name of the courier and
the courier tracking number is provided below:

XYZ Courier Ltd. Tracking number 98765xxxx.

2. As per the information we received from the courier the cheque book will be delivered to you
tomorrow. In case of any difficulty please contact our Relationship Manager Shri
_________________, Mobile Number ______________.

3. We appreciate your patience, and we are confident that your next experience with us will meet
your expectations. We would like to assure you of our commitment to the service and convenience of
our customers. In case you need to discuss any issue regarding our services, our Relationship
Manager will be pleased to guide you.

Yours faithfully,

Branch Manager

Name___________________

Contact details____________

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 155 | P a g e
 17. Write a letter to customer Informing customer about TDS
deductions.

Shri/Smt.___________________ Date:

Address___________________

__________________________

Madam/Dear Sir,

TDS Certificates

We request a reference to your letter dated <(date)> and are pleased to attach the Tax Deducted at
Source (TDS) certificate/Home loan/Education Loan interest certificate for the year …………….
<FY>.

In this connection, we wish to inform you that the certificates can also be downloaded through the
internet banking facility through the < (e-services)> my certificates menu.

We thank you for banking with us.

With best regards,

Yours faithfully,

Branch Manager

Name___________________

Contact details____________

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 156 | P a g e
 18. Write a letter to customer regarding Locker Allotment /
Refusal.

Shri/Smt.___________________ Date:

Address___________________

__________________________

Madam/Dear Sir,

LOCKER ALLOTMENT REQUEST – STATUS UPDATE

We acknowledge your letter regarding request for allotment of Locker in our Branch. We are sorry to
advise that at present locker is not available in your desired category (small). However, we have
noted down your request for allotment. Locker is allotted on “First come, first serve basis”. In case of
a locker is surrendered, the same can be allotted to you based on your serial number in queue.

In case of any other services, please write to us. For annual rent and other applicable charges please
visit our website bank.sbi>information-services>revised-service-charges.

We thank you for banking with us.

With best regards,

Yours faithfully,

Branch Manager

Name___________________

Contact details____________

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 157 | P a g e
 19. Write a Letter to customer on Settlement of Accounts of
Deceased Constituent where Nomination is available.

Shri/Smt.___________________ Date:

Address___________________

__________________________

Madam/Dear Sir,

Settlement of Assets of Deceased Constituent

We are very sorry to hear the news of sad demise of < Name>, who was account holder at this
Branch. We pray to the God for providing peace to the departed soul and strength to the family to
bear the irreparable loss. As you have asked for procedure of settlement of account(s) of deceased,
we advise as under:

< In case the nomination is recorded>

We have observed that Late <Name of account holder> has made a nomination in the account in
favour of < Nominee>. For settling the balance in favour of nominee, we require following
documents.

1. Death certificate of the account holder, in original

2. KYC documents of nominee
3. Natural guardian as recorded in the nomination form and his/her KYC documents (In case
nominee is minor)

Please visit the branch at your convenience and meet <Name of official>, < Phone number>, who is
also marked in this email. He shall be guiding you through the process.

Yours faithfully,

Branch Manager

Name___________________

Contact details____________

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 158 | P a g e
 20. Write a letter to a customer who is enquiring of a bank
account details of some other customer of your bank.

Shri/Smt.___________________ Date:

Address___________________

__________________________

Madam/Dear Sir,

Bank account details

With reference to your letter dated < >we are to inform you that the rules and regulations of our bank
strictly prohibit us from divulging the secrecy of accounts of our customers to a third party.

Hence, we are deeply sorry not to favour you with the information asked for.

Inconvenience is regretted.

Yours faithfully,

Branch Manager

Name___________________

Contact details____________

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 159 | P a g e
 21. Write a letter to a customer about a new deposit scheme of
your bank.

Mr. /Mrs. ABC Date:

Address_______________
______________________

Madam/Dear Sir,

Introduction of New “-----------Scheme/Product”

Namaste/Greetings from State Bank of India.

We are pleased to inform you that our bank has introduced “-----------Scheme/Product,”
offering higher return with flexible tenure options. We invite you to visit our branch and
learn more about this beneficial Scheme/Product.

You may also visit our website https://bank.sbi to know more about “-----------
Scheme/Product.”

We value your relationship with us. In case of any query or further information, please
feel free to contact us/get in touch with us_____________ (branch email ID & contact
No.).

We thank you for banking with us and assure you our best services.

Yours sincerely,

Branch Manager
Name___________________
Contact details____________

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 160 | P a g e
 22. Write a letter to a customer about upgradation to Digital
Banking services.

Mr. /Mrs. ABC Date:

Address_______________
______________________

Madam/Dear Sir,

Adopt SBI YONO digital platform

Namaste/Greetings from State Bank of India.

We invite you to explore YONO by our bank, an all-in-one digital banking app. It allows
instant transfer, bill payments, YONO cash, and various transaction options from your
mobile phone. In case of any query or further information, please feel free to contact
us/get in touch with us_____________ (branch email ID & contact No.).

We value your relationship with us and thank you for banking with us and assure you our
best services.

Yours sincerely,

Branch Manager
Name___________________
Contact details____________

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 161 | P a g e
 23. Write a letter to a customer regarding renewal of
Overdraft/Cash Credit account.

Mr. /Mrs. ABC Date:

Address_______________
______________________

Madam/Dear Sir,

Renewal of Overdraft/Cash Credit account

Namaste/Greetings from State Bank of India.

It has been observed from our record that your Overdraft/Cash Credit Account is due for
renewal on ______________. Kindly submit the required documents/papers/latest
financial data for processing the renewal. Check List of required documents/papers/latest
financial data is enclosed with this letter.

Your prompt action will protect you from any inconvenience related to banking
transaction. We value your relationship with us and solicit your cooperation. In case of
any query or further information, please feel free to contact us/get in touch with
us_____________ (branch email ID & contact No.).

Kindly acknowledge receipt of this letter for our record. / Receipt of this letter may
please be acknowledged for our record.

We thank you for banking with us and assure you our best services.

Yours sincerely,

Branch Manager
Name___________________
Contact details____________
Enclosure: as above

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 162 | P a g e
 24. Write a letter to a customer regarding Locker Operation.

Mr. /Mrs. ABC Date:

Address_______________
______________________

Madam/Dear Sir,

Locker operation reminder

Namaste/Greetings from State Bank of India.

It has been observed from our record that you have not operated your locker for a long
time. You are, therefore, requested to kindly visit the branch and operate your locker at
the earliest to avoid any inconvenience in future banking transactions related to the
locker.

We value your relationship with us and solicit your cooperation. In case of any query or
further information, please feel free to contact us/get in touch with us_____________
(branch email ID & contact No.).

Kindly acknowledge receipt of this letter for our record. / Receipt of this letter may
please be acknowledged for our record.

We thank you for banking with us and assure you our best services.

Yours sincerely,

Branch Manager
Name___________________
Contact details____________

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 163 | P a g e
 25. Write a letter to customer about safe Digital Banking
Practices.

Mr. /Mrs. ABC Date:

Address_______________
______________________

Madam/Dear Sir,

Safe digital banking practices

Namaste/Greetings from State Bank of India.

With reference to the subject matter, we have to advise that please do not share your
OTP, PIN or Password with anyone. The bank never asks for such details. Stay alert and
report suspicious activity immediately.

You may also visit our website https://bank.sbi to know more about safe digital banking
practices.

We value your relationship with us. In case of any query or further information, please
feel free to contact us/get in touch with us_____________ (branch email ID & contact
No.).

We thank you for banking with us and assure you our best services.

Yours sincerely,

Branch Manager
Name___________________
Contact details____________

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 164 | P a g e
 26. Write a letter to customer asking him to attend Lok Adalat
for settlement of dues.

Mr. /Mrs. ABC Date:

Address_______________
______________________

Madam/Dear Sir,

Lok Adalat for settlement of loan dues

Namaste/Greetings from State Bank of India.

We draw your attention to the outstanding loan dues in your account maintained with our
branch. Despite repeated reminders, the dues remain unpaid, due to which the account
has been classified as irregular/NPA.

We wish to inform you that a Lok Adalat is scheduled on [date], providing an excellent
opportunity to amicably settle your account with concession in interest/charges as per
applicable guidelines. You are, therefore, requested to kindly attend the Lok Adalat at
[venue/time] along with necessary documents and meet the undersigned for completing
the settlement process.

Your cooperation is solicited to resolve the matter and avoid further recovery action.

Yours sincerely,

Branch Manager
Name___________________
Contact details____________

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 165 | P a g e
 27. Write a letter to your Regional Manager informing him
about the efforts made for promotion of Anytime Delivery
Channels.

The Regional Manager Date:

State Bank of India

XYZ Region________

Madam/Dear Sir,

Promotion of anytime delivery channels

We wish to inform you that our branch has undertaken multiple initiatives to enhance awareness
and usage of our Anytime Delivery Channels such as SBI YONO, YONO Cash, SBI Net-
Banking, and ATM facilities. We conducted in-branch demonstrations and placed
standees/posters to educate customers regarding safe digital banking practices, UPI usage, and
card-less withdrawal features.

In addition, our staff actively assisted customers with YONO onboarding and transaction
execution. Daily digital enrollment monitoring and doorstep education for senior citizens were
also carried out. As a result, our branch has achieved significant growth in digital registrations
and transactions, reducing dependency on branch counters.

We assure continued focus on deepening digital adoption and enhancing customer convenience.

Yours faithfully,

Branch Manager

Name___________________

Contact details____________

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 166 | P a g e
 28. Write a letter to your Regional Manager regarding shortage
of staff due to promotion & retirements.

The Regional Manager Date:

State Bank of India

XYZ Region________

Madam/Dear Sir,

Additional staff due to vacancy arising from promotion & retirement

This is to bring to your kind notice that our branch is presently facing acute staff shortage due to
promotion of two officers and retirement of one senior staff member. As a result, branch
operations, customer service, housekeeping activities, and backend compliance work are being
adversely affected.

Despite best efforts and multitasking, it is becoming difficult to maintain TAT for customer
services, daily reports, audit compliance, and digital migration targets. The pressure on
remaining staff has considerably increased.

In view of the above, we request your good office to kindly arrange posting of additional staff at
the earliest to ensure seamless branch functioning and customer satisfaction.

Yours faithfully,

Branch Manager

Name___________________

Contact details____________

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 167 | P a g e
 29. Write a letter to your Regional Manager regarding
requesting security guard for ATM due to theft incidents.

The Regional Manager Date:

State Bank of India

XYZ Region________

Madam/Dear Sir,

Posting of security guard at branch ATM – increase in theft incidents

We wish to bring to your notice that multiple incidents of theft and suspicious activities have
recently been reported at our onsite ATM. The local police station and the Commissioner of
Police have also advised deploying security personnel at the ATM for safety and prevention of
such events.

Currently, the ATM remains unattended during non-banking hours, which poses substantial risk
to customers and bank assets. With increasing digital and ATM-based transactions, ensuring
security at delivery points has become essential.

In view of the above, we request immediate approval for engaging a security guard at our onsite
ATM to safeguard public interest, maintain branch reputation, and comply with police directions.

Yours faithfully,

Branch Manager

Name___________________

Contact details____________

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 168 | P a g e
 30. Write a letter to your Regional Manager regarding
permission for conducting financial literacy camp.

The Regional Manager Date:

State Bank of India

XYZ Region________

Madam/Dear Sir,

Financial literacy camp at ABC college

We wish to bring to your notice that, we propose to organize a Financial Literacy Camp at ABC
College to educate students about digital banking, savings, and investment habits. Kindly grant
permission and necessary budgetary support.

We assure continued focus on deepening digital adoption and enhancing customer convenience.

Yours faithfully,

Branch Manager

Name___________________

Contact details____________

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 169 | P a g e
 31. Write a letter to your Regional Manager regarding Cash
Shortage at branch.

The Regional Manager Date:

State Bank of India

XYZ Region________

Madam/Dear Sir,

Temporary shortage of branch cash due to heavy pension disbursement

This is to bring to your kind notice that, owing to heavy pension disbursement today, our branch
experienced a temporary cash shortage. However, the matter was managed through coordination
with the nearby branch.

A detailed report is enclosed for your information.

Yours faithfully,

Branch Manager

Name___________________

Contact details____________

Enclosure: as above

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 170 | P a g e
 32. Write a letter to your Regional Manager regarding
successful Digital campaign.

The Regional Manager Date:

State Bank of India

XYZ Region________

Madam/Dear Sir,

Successful “Digital Seva” campaign

We are pleased to inform you that our branch successfully conducted “Digital Seva,” campaign
resulting in 320 new YONO activations and 45 digital savings accounts.

By carrying out such digital campaign, awareness about digital banking has increased
significantly among customers, and they participated enthusiastically. Such campaigns greatly
help us promote our digital products and provide better services to our customers.

Details are enclosed for your record.

Yours faithfully,

Branch Manager

Name___________________

Contact details____________

Enclosure: as above

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 171 | P a g e
 33. Write a letter to your Regional Manager regarding power
supply failure affecting branch operations.

The Regional Manager Date:

State Bank of India

XYZ Region________

Madam/Dear Sir,

Power supply failure

This is to bring to your kind notice that, branch operations were affected today due to power
failure from 11:00 AM to 2:30 PM. Backup systems were used to ensure uninterrupted service.

However, we discussed the matter with the electricity department as well as our UPS and battery
vendor and ensured that such incidents are minimized in the future, so that we can provide better
services to our customers without any inconvenience. All necessary steps in this regard are being
taken by our branch.

This is for your information.

Yours faithfully,

Branch Manager

Name___________________

Contact details____________

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 172 | P a g e
 34. Write a letter to your Regional Manager regarding one of
your branch Staff’s excellent achievements.

The Regional Manager Date:

State Bank of India

XYZ Region________

Madam/Dear Sir,

Commendation of staff achievement

We wish to bring to your notice that Mrs./Mr. ____________________ (JA) achieved 150% of
the digital product target for the quarter. She/He is currently performing her/his duties with full
dedication, sincerity, and honesty, and constantly strives to contribute as much as possible to the
branch’s budget achievement.

Such employee serves as valuable assets for our branch. I have wished him on his outstanding
achievement. I also recommend that she/he be given suitable appreciation from your end as well.
This will boost morale of the employee and inspire her/him to perform even better in the times to
come.

Kindly consider suitable appreciation.

Yours faithfully,

Branch Manager

Name___________________

Contact details____________

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 173 | P a g e
 35. Write a letter to your Regional Manager regarding for
installation of additional CCTV camera in the branch premises.

The Regional Manager Date:

State Bank of India

XYZ Region________

Madam/Dear Sir,

Installation of Additional CCTV Camera

This is to bring to your kind notice that, during internal inspection, it was found that the branch
premises area requires some additional CCTV cameras for better coverage. By installing
additional CCTV cameras, branch activities can be closely monitored, which will help prevent
potential fraud arising from any suspicious activities.

From a security perspective as well, this is extremely essential. Therefore, we, recommend that
permission may be granted to install some additional CCTV cameras in our branch premises.

Kindly approve necessary installation.

Yours faithfully,

Branch Manager

Name___________________

Contact details____________

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 174 | P a g e
 36. Write a letter to your Regional Manager regarding CSR
activity conducted at local orphanage.

The Regional Manager Date:

State Bank of India

XYZ Region________

Madam/Dear Sir,

CSR Activity

We are pleased to inform you that our branch organized a CSR activity at the local orphanage,
distributing educational materials to children. It is well known to all of us that Corporate Social
Responsibility (CSR) activities hold great importance in our bank, through which the bank has
been fulfilling its social responsibilities.

These activities not only enhance the bank’s image and visibility but also demonstrate that, the
bank plays a leading role in the upliftment and welfare of the needy section of society.

Details are enclosed for your kind information.

Yours faithfully,

Branch Manager

Name___________________

Contact details____________

Enclosure: as above

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 175 | P a g e
 37. Write a letter to your Regional Manager regarding
installation of Cash Deposit Machine (CDM).

The Regional Manager Date:

State Bank of India

XYZ Region________

Madam/Dear Sir,

Installation of Cash Deposit Machine (CDM)

This is to inform that several customers have requested for installation of a Cash Deposit
Machine near the Market area due to heavy footfall and cash-based transactions. The availability
of a CDM will enhance convenience and reduce crowd at the branch counter.

We assure continued focus on promoting digital and alternate channel adoption and enhancing
customer convenience.

Your kind approval in the captioned matter will be highly appreciated.

Yours faithfully,

Branch Manager

Name___________________

Contact details____________

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 176 | P a g e
 38. Write a letter to your Regional Manager regarding repair of
Air Conditioning Units in branch premises.

The Regional Manager Date:

State Bank of India

XYZ Region________

Madam/Dear Sir,

Repair of Air Conditioning Units

The air conditioning units in the customer lobby are malfunctioning and require urgent servicing
due to rising temperature. When the branch premises function properly, customers experience
great comfort and convenience in completing their banking transactions. Along with that,
keeping our branch premises fully updated, ensuring everything works efficiently, and
maintaining customer amenities is extremely important for quality customer service and brand
image.

Therefore, for the purpose of excellent customer service and for better upkeep of our branch
premises, we seek your kind approval for the maintenance work of Air Conditioning Units.

Yours faithfully,

Branch Manager

Name___________________

Contact details____________

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 177 | P a g e
 39. Write a letter to a Letter to School for Student Savings
Account Camp.

The Principal Date:

ABC School
Address_______________
______________________

Madam/Dear Sir,

Request to Organize Savings Account Camp for Students

Namaste/Greetings from State Bank of India.

We would like to organize a Student Savings Account Camp in your school to promote
financial literacy and encourage early savings habits among students. Such Savings
Account camp will not only develop a habit of saving among students but will also help
them understand banking and financial systems better, which will be very useful for them
in the future.

In case of any query or further information, please feel free to contact us/get in touch
with us_____________ (branch email ID & contact No.).

We shall be awaiting your approval in the matter. We value your relationship with us and
assure you our best services.

Yours sincerely,

Branch Manager
Name___________________
Contact details____________

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 178 | P a g e
 40. Write a letter to your Regional Manager regarding shifting
of branch premises.

The Regional Manager Date:

State Bank of India

XYZ Region________

Madam/Dear Sir,

Shifting of Branch to a new premises

This is to bring to your kind notice that, due to inadequate space and parking issues, we propose
to shift our branch to a new location (approx. 200 meters away) which offers better accessibility
and visibility. The new premises meets all required norms, and if we shift our branch premises to
a new location, it will enable us to provide better facilities to our customers.

Our customers will have more seating space and sufficient area for conducting banking
transactions. There will also be proper parking facilities available for customers, and other
important offices/departments are also located nearby.

Hence, it will greatly help us to enhance our visibility and improve the level of customer service.
Therefore, we recommend and seek your kind approval for shifting of branch premises to a new
location.

Your kind approval in the captioned matter will be greatly appreciated.

Yours faithfully,

Branch Manager

Name___________________

Contact details____________

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 179 | P a g e
 Essay Writing
(Especially for Trainee Officer Examination)

Brief Background, Basic Content, and

Complementary closing
(BBC)

1. ASSETS QUALITY

1. Profitability.
2. A/C will cease to generate interest income and provision must be
made.
3. Suitable mechanism to ensure that the asset quality is maintained in
the good condition throughout.
4. DL/TL- repayment stipulated (installments due within 90 days),
CC/OD account regular (remains irregular for 90 days).
5. Standard assets are earning assets for the bank.
6. Follow up needed for upgrading the assets.
7. Recovery of NPA is effort elastic, higher the effort, higher will be the
result.
8.Various mechanism available for resolution /recovery of NPA- Letters,
Phone calls, Personal Visits, OTS, Compromise, Lok Adalat, Bank
Adalat, SARFAESI, ARC, Court Case, DRT, Write off.
9. Standard, SMA, Sub-standard, Doubtful, Loss.
10. Proper appraisal, sanction, documentation, inspection and follow-up.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 180 | P a g e
 2. CROSS SELLING- IT’S IMPORTANCE FOR THE BANK

1. The main function of a banker is accepting deposits for the purpose of

lending and investment. The major income for bank- interest income.
2. The net interest income of the banks is coming down day by day due
to tough competition.
3. Sec 6(i) of BR Act- bank can undertake insurance and other activities.
4. Selling to existing customer a greater number of products-Cross
Selling.
5. All needs of customers are met at a single point, financial
supermarket/one stop shop. No extra Fixed cost for Banks.
6. Bank can retain the customer and increase commission income at the
same time.
7. Relationship banking and improve the customer loyalty to the bank.
8. Cross-Selling Department renamed as Customer Value Enhancement
(CVE) Department.
9. Cross- Selling results in value addition to the customers.
10. Customers are happy and remain loyal to the bank.

3. GRIEVANCE REDRESSAL MECHANISM FOR BANK’S

CUSTOMERS

1. The Bank’s business, profitability, success depends on ability to retain

the existing customers and add new customers.
2. Customer service should be exemplary; a satisfied customer is an
ambassador for the bank.
3. If a customer complains due to omission, commission or delay, we
need to take immediate corrective action.
4. Grievances crop up by the cause of- Service Gap, Information Gap,
Policy Gap, Delivery Gap & Communication Gap.
5. Internal processes to deal with customers complaint-Complaint cum
suggestion box, Toll free Helpline, Meeting with the Branch Manager or
Controller, CRM & CMS, Customer Day, Customer service Committee
Meetings, Customer Relations Programmes & Town hall meeting.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 181 | P a g e
6. External processes to deal with customers complaint- Complaint to
the Organization, Ombudsman, COPRA, CPGRAM & INGRAM etc.
7. The customer is seen as a king. He is not dependent on us we are
dependent on him for business. Hence, complaints/pain points should be
identified & redressed quickly to earn the customer satisfaction and
goodwill which would improve Bank’s business & profitability.

4. SBI IS THE BANKER TO DIGITAL INDIA

1. It is a fact that it is technology that drives business today. A customer

experiences a very convenient, anytime, anywhere and any mode
banking by using technology.
2. Technology improves crowd management and reduces waiting time &
transaction processing time of customers.
3. Various technology initiatives by SBI are ATMs,INB,Mobile
Banking, CDM, Debit/Credit Card, GCC, GRC,Kiosks, POS,
SWAYAM, ECDM etc,
4. Some other digital products by SBI are SBI Quick, SBI No queue,
SBI FASTag, SBI Bhim Aadhaar, SBI Mingle, SBI epay, SBI Digi
voucher, Project LOTUS and YONO.
5. YONO cash, YONO Krishi, YONO Mitra, YONO Bachat and YONO
Mandi.
6. The GOI has a vision for Digital India. Technology is considered as
one of the pillars of future growth of the Bank.
7. More than 97.50% of transactions of the Bank are happening digitally.
8. Thus, the various ongoing technology initiatives of the bank go to
prove that SBI is the Banker to Digital India marching towards
fulfillment of the aspirations of the GOI to become Digital India.
9. SBI got the “Best Digital Bank” award by Financial Express from
Honorable Finance Minister, Smt. Nirmala Sitharaman in October’2024.

5. ROLE OF RATING AGENCIES

1. Rating is an opinion on the credit quality of an instrument. Investors

look for avenues for deployment of their savings/surplus for better
returns.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 182 | P a g e
2. Rating agencies by virtue of being objective, unbiased and
independent aid the investors in decision making for investments.
3. Rating agencies study the various aspects of the corporate thoroughly
under various areas like financial, accounting, management etc.
4. Depending upon the rating earned by the corporate from the rating
agency the risk weight will be reckoned. Better the rating lower will be
the risk weight.
5. Some instruments are not to be rated: Shares of companies, Govt.
bonds, Certificate of deposits etc.
6. Instruments like commercial paper, bonds, debentures and company
deposits are now rated by rating agencies.
7. India’s foreign currency rating is done by foreign rating agencies.
8. Rating agencies are regulated by SEBI.
9. Rating agencies play an important role by enabling investors for
taking investment decisions and corporate for raising funds from the
Money Market and Capital Market.
10. CRISIL, ICRA, CARE, SMERA, S&P, Moody’s, Fitch etc. are
major credit rating agencies.

6. ONLINE CLASSES VS OFFLINE CLASSES

1. The COVID-19 has resulted in all educational institutions including

training institutions shutting all their classroom activities across the
world.
2. Online classes- e-learning method, remotely, digital platform, over the
internet etc.
3. Online classes Advantages: Cost reduction, time savings, quality
teaching staff anytime & anywhere in the world, recorded videos, chat
facilities etc.
4. Online classes Disadvantages: affects mental well-being, get addicted
to the Internet and gadgets, Network Challenges, Connectivity issues,
affordability in the rural areas.
5. Offline classes Advantages: Teachers and students are well connected,
motivation, collaborative learning (learning together), increases self-
awareness, enhances critical and innovative thinking skills, engage in
live discussions.

Prepared by Roushan Raj Tiwary, Chief Manager & Faculty, SBILD, Purnea, Mob- 930 4255 930 183 | P a g e
6. Offline classes Disadvantages: The cost, time, the necessities of the
physical presence are the major bottlenecks of the offline classes.
7. Blended learning could be an ideal choice: Combines both face-to-
face and online learning experiences. It includes single learning
resources available with human interaction, brainstorming and team
learning.

7. ETHICS IN MARKETING IN BANKS

1. Marketing is an effective tool for increasing the business of an

organization.
2. Marketing strategy is very important to make its existing and potential
customers know about is various products and services and their USP
(Unique Selling Point).
3. Direct marketing through advertisements: daily newspapers, posters-
roads, malls, theaters, railway/bus stop etc.
4. Advertisement through social media: You Tube, Facebook, Twitter
etc.
5. Direct marketing by the employees: Branch staff, branch notice
boards, BC/CSP etc.
6. Ethics in marketing: Banking is trust between customer and the bank.
7. Marketing should not be misleading and manipulative.
8. The banker must maintain highest level of ethics in his dealings.
9. Ethics: Trust, Integrity, Honesty, Reliability, Transparency, No
hidden cost etc.
10. Ethics- one of the items in the bank’s value statements (STEPS).
11. The bank has also appointed Chief Ethics Officer.

8. NPA- MANAGEMENT- ITS IMPORTANCE

1. Banks give greater importance for maintaining the asset quality for
improving profitability.
2. An asset ceases to generate income if becomes an NPA.
3. Effects of NPA: Interest income of the bank will come down,
provision must be made for NPA, Profitability will go down, and
financial position of the bank will be disturbed.

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4. First prevention of NPA at SMA level, SMA-0/1/2 is standard assets
but irregular accounts.
5. Strategies for recovery/resolution of NPAs- Constant and regular
follow up, rephasement/restructuring of limit, OTS/compromise/ Lok
Adalats, SARFAESI, ARC, Court case/DRT, Write-off etc.
6. NPA management is very important.
7. Bank has set up Stressed Assets Resolution Group (SARG).
8. Thus, the above strategies will result in prevention of slippage of
accounts into NPAs and their faster recovery/resolution.

9. SMEs- AN ENGINE OF GROWTH FOR THE ECONOMY

OF THE COUNTRY

1. Economic growth of a country depends upon, among other the

industrial growth.
2. SMEs play a very significant role in the economy.
3. SME segment provides the largest employment in the country, next to
agriculture.
4. Definition of SME-MSMED Act, 2006, w.e.f 01.04.2025.
5. Micro Enterprise- Investment in P&M is up to Rs 2.5 cr and annual
sales turnover is up to Rs 10 cr.
6. Small Enterprise- Investment in P&M is up to Rs 25 cr and annual
sales turnover is up to Rs 100 cr.
7. Medium Enterprise- Investment in P&M is up to Rs 125 cr and annual
sales turnover is up to Rs 500 cr.
8. GOI and RBI have advised that SME sector financing should be a
focus area for the banks.
9. Challenges faced by SMEs- marketing, raising capital, adoption of
latest technology, skill development etc.
10. Thus, SMEs are accepted as engine of growth promoting equitable
development resulting in decentralization of wealth in the economy and
creation of larger-scale employment potential at a low capital cost.

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 10. ANYTIME CHANNELS- A BOON FOR CUSTOMERS AND
THE BANK

1. Alternate channels enable customer to carry out their banking

transaction without visiting bank branches.
2. The customers are benefited by way of convenient anytime,
anywhere, any mode banking facilities.
3. Brick and mortar banking is being rapidly replaced by anytime
channels.
4. Various anytime channels such as ATMs, INB, Mobile Banking, E-
wallets, CDMs, Recyclers, POS, SWAYAM, YONO etc.
5. Alternate channels reduce operational cost and footfall of customers
for the bank, enabling the branch staff to concentrate more on business
development and marketing.
6. Share of Transactions on alternate channels as on 31.03.2025 is
98.20%.
7. Thus, various anytime channels of delivery are a big boon for the
Banks for improving the bottom line and for customers for conducting
banking transaction with ease and comfort.

11. MISCELLANEOUS BUSINESS-ITS IMPORTANCE FOR

BANKS

1. Now a days due to so many factors bank’s fund-based

advances/income have decreased which has resulted in reduction of Net
Interest Income (NII) for the banks.
2. To retain and improve business and profitability banks are
undertaking miscellaneous business.
3. B.R Act was also suitably amended to enable the banks to undertake
various miscellaneous businesses under section 6(i) (o).
4. Some of the major miscellaneous businesses are: Govt. Business,
Locker, Remittance/Collection, Forex, Cross Selling, Wealth
management, sale of gold bonds, Merchant Banking, POS machines etc.
5. Advantages: Financial supermarket, one stop shop, no major out lay
of funds, Low service cost, sizeable income earned.

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6. Banks are taking steps to improve miscellaneous business by
developing relationship banking, creating awareness to customers about
their various products and services.
7. Thus, the bank looks upon emerging opportunities in the economy to
serve its customers through various ways for their betterment and earn
good miscellaneous income from these businesses.

12. STRATEGIES FOR MEETING COMPETITION FROM

VARIOUS BANKS AND FINTECH COMPANIES

1. In emerging economy like India, competition is inevitable.

2. Bank should be more aware of the strategies needed to overcome
competition and improve business. Some of the strategies are
3. Customer service needs to be exemplary. Every staff should be a
branch/bank ambassador.
4. Technology brings lot of benefits to customers as well as to bank.
5. Products innovation will help bank to build loyalty of customer and
retain them with the bank.
6. Relationship banking will improve business and profits.
7. Grievance redressal mechanism will help better customer satisfaction.
8. Ambience of branches should be convenient and comfortable for the
customer.
9. Thus, the aforesaid strategies will help bank to maintain its lead
position and meet competition and improve business and market share.

13. SBI YONO- PROVIDING CUTTING EDGE DIGITAL

SERVICES TO CUSTOMERS

1. It is technology that drives business today. It is very convenient,

anytime, anywhere and any mode banking.
2. YONO is an acronym for “You Only Need One.” It is India’s first
OMNI channel digital platform. SIM binding factor has made it very
safe.
3. Banking & Lifestyle. It is available on Web, Tab and Mobiles.
Available on Android and iPhones.
4. Three important modules in YONO.

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5. Digital Banking- Digital account opening, fund transfer, bill
payments, pre-approved loans, fixed deposits etc.
6. Financial Super Store- all non-financial needs like life, general, MF,
Credit cards, Securities etc.
7. Online Market Place- lifestyle, entertainment, travel, shopping etc.
8. Latest Initiatives- YONO cash, YONO krishi.
9. YONO has been launched in foreign counties like UK, Canada, Sri
Lanka, Bangladesh etc.
10. Thus, YONO offers innumerable benefits to the customers.

14. CYBER FRAUDS AND THEIR PREVENTION IN BANKS

1. Despite bank’s various protective mechanism and safeguards

Customers, Banks and Financial Institutions face cyber risks and
hazards.
2. Cybercrime is an illegal activity or crime committed with the help of a
computer or an electronic device.
3. Cybercrimes may include anything from illegally downloading files to
distributing viruses, phishing, stealing personal information etc.
4. Types of cybercrimes- Phishing, Vishing, Spoofing, Identity theft,
Hacking, Malware, and Ransom ware, Worms, Trojan horses, ATM
skimming etc.
5. Preventive efforts- Cyber security is a body of technologies, processes
and practice designed to protect network, computers, applications and
data from compromises.
6. Mitigation strategies- People (awareness), Process (enforcement of
cyber/information security policy) and Technology (implementation of
the best state of the art technology).
7. Thus, the focus on cyber security must be on investments on IT
management, incident response, exchange of information, network
security, vendor management, and access control and security solutions.

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 15. ARTIFICIAL INTELLIGENCE (AI) IN BANKS

1. The banking sector is witnessing sea changes, the most important

being the banks becoming customer centric.
2. Banks in India have started using AI in mobile banking, e-banking,
real-time money transfers etc.
3. AI is a system that can understand the world around it, analyze and
understand the information it receives, take actions based on that
understanding and improve its performance by learning from what
happened.
4. Some common uses of AI in Banks: Fraud detection, protecting
cyber-attacks, customer support and helpdesk, Risk management,
computer security, wealth management etc.
5. Some common challenges of AI: availability of correct data, data
access and data privacy, may cause grave unemployment, KYC and
normal compliance risk etc.
6. Thus, taken the requisite care of safeguards, AI will not only empower
banks by automating its knowledge workforce, but it will also make the
whole process of automation intelligent enough to do away with cyber
risks and meet the competition effectively.

16. E-COMMERCE IN SBI

1. E-commerce, also known as electronic commerce or internet

commerce, refers to the buying and selling of goods or services using the
internet and transfer of money and data to execute these transactions.
2. Amazon, Flipkart, OLX, e-Bay, big basket, Walmart, Alibaba etc.
3. 4 types- B2C (business to consumer), B2B (business to business),
C2B (consumer to business) and C2C (Consumer to consumer).
4. Various modes of E-commerce: e-Handshake, Acquisition of e-
Commerce Sub-merchants via Aggregators (ASVA), State Bank i-
collect, Merchants acquired as Billers through Electronic Bill
Presentment & payment (EBPP) Module, m-Commerce, e-Fright, E-
Payment Scheme, Multi option payment system (MOPS) etc.
5. SBI e-Pay is the aggregator service by SBI which provides electronic
connectivity with various Banks & FIs on the one hand and merchants

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on the other, thus facilitating e- Commerce/m-Commerce transaction
between merchants, customers and various FIs for all kinds of payments.
6. Thus, SBI is playing a big role in helping the customers in
undertaking e-commerce transactions to their advantage.

17. MANPOWER FORM THE BACKBONE OF THE BANK

1. The expectation of the employees is job security, good living

conditions, job satisfaction etc.
2. Banks need to take all the steps for assurance of the aforesaid points
and keep up the morale of the employees always motivated.
3. Some of the steps are: Human Resources Policies, Career
Development System, Sanjeevani, Abhivyakti, Job families, SBI GEMS,
Work from Home, Staff suggestion scheme, silver jubilee award, group
insurance scheme, LFC/HTC/LTA, Compassionate appointment,
FA/IHLS etc.
4. Various staff welfare schemes, Training, Learning & Development.
5. Bank focuses on employee’s long-term growth and development
enabling the bank an excellent place to work.
6. Bank believes that its people are its strength and pillars of growth.
Motivated human capital can steer business of the bank in testing times.
7. Thus, manpower resource is the backbone of the bank.

18. RISK MANAGEMENT BY THE BANK

1. Risk- exposure to danger/uncertainty-resulting in loss.

2. Banks face many risks in their day-to-day business. Risk cannot be
avoided.
3. Risks can be identified, quantified and mitigated and timely action can
prevent/mitigate risks.
4. Credit Risk- default risk, Market Risk- adverse change in the market,
Operational Risk- inadequate or failed internal processes, people and
system, Liquidity Risk- inability to repay the deposit amount to the
depositor on due date.
5. Some other Risks are I.T risk, Forex risk, Country risk, Compliance
risk, reputation risk etc.

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6. If risk materializes it causes loss to the Bank and erosion of capital.
7. Central Board of the Bank approves risk management policies.
8. 1st September is observed as Risk Awareness Day.
9. Thus, proper and efficient management of risks is ensured by the bank
for maintaining the stability and soundness of the bank.

19. Leveraging Technology for business growth

1. What is Digital Transformation? - Service to Customers at Branch

is traditional whereas Service to Customers at their fingertips is digital.
2. Creating new products and processes exclusively using the digital
technologies.
3. Matching the Banking technology with the technology adopted by the
surrounding eco system.
4. Marketing the Products and Services with the support of emerging
technologies like Data Analytics, AI / ML etc.

20. How Digital Transformation ensures increased Operational

Efficiency?

1. Machines always provide the targeted efficiency whereas it will be

varying from man to man / time to time.
2. Machines can work 24x7 whereas man work with limited timelines.
3. Machines can adopt process modification across the globe with
shortest time for adapting the change.
4. Machines are more efficient than man because it is faster than man,
more particularly in repetitive activities.

21.How Digital Transformation enhances Customer Experience?

1. Ease of doing things.

2. Can avail the services 24 x 7.
3. Can use its own devices for transactions.
4. Need not visit Bank’s physical infrastructure.

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 22.How can technology drive Deposit growth?

1. CASA is the contributing component of Deposit for Banks. As it is a

low-cost fund, Banks prefer to grow more in CASA.
2. CASA is contributed by many Institutions who are collecting Fees /
Donations.
3. CASA is also contributed by Government Departments who are
collecting Taxes and Revenue.
4. All these contributors require Remitter Information and Hassle-Free
Reconciliation of Funds received by them.
5. Digital Collections using Technology will resolve all the issues.
6. Banks integrate their collection software with Payment Gateway with
Card / Net Banking / UPI / Wallet options.

23.How can technology drive Advances growth?

1. Digital Lending – Online Platforms / Mobile APPs for loan request.

2. Online platform / Mobile APPs for retail loans connecting to Loan
Originating System (LOS) ensure quick sanction.
3. PSBLoanin59Minutes.com – A Technology solution for online
sanction of MSME loans interfaced with LOS.
4. Online validation with MCA, GSTN, Traces (IT), CIBIL, PAN,
CERSAI ensures quality lending / quicker decision making.
5. Geo Tagging & GPS Tracking Device attached to hypothecated
assets.

24.How effective is the Digital Payment System?

1. Retail Payment Systems facilitates transfer of funds from our

customer account to another individual or a Merchant.
2. Major adoption Digital Payment Systems started immediately after
Demonetization.
3. Became essential after the breakout of Pandemic.
4. Net Banking and Mobile Banking were the products initially used for
personal fund transfers.

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5. Unified Payment Interface (UPI) is a game changer in the Digital
Payment System.
6. Google Pay, BHIM from NPCI is using Mobile Number as VPA and
hence it is easy to communicate to the remitter.
7. Ease of doing Payment. Just accept the Fund Request, enter the PIN
and Pay.

25.What are the advantages of CBDC?

1. Central Bank Digital Currency (Digital Rupee) is a replacement for

Physical Currency issued by RBI.
2. e-Rupee would be in the form of a digital token. It would be issued
in the same denominations that paper currency and coins are currently
issued. It is a legal tender.
3. It is like a wallet and can be used for P2P & P2M transactions.
4. E-Rupee (Corporate) was launched on 01/11/2022 and e-Rupee
(Retail) was launched on 01/12/2022 by RBI.

26.How Data Analytics support Business?

1. Data Analytics is the process of analyzing raw data to find trends and
answer questions.
2. Types of data analysis are descriptive, diagnostic, prescriptive and
predictive.
3. What happened in the past is descriptive, why it happened in the past
is diagnostic, what is the recommendation is prescriptive and how it will
happen in future is predictive.
4. Business decision, more particularly quality credit decision can be
taken based on Data Analytics.
5. Data analytics is more useful while designing the deposit or loan or
digital product to ensure high acceptability.

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 27.How Artificial Intelligence (AI) / Machine Learning (ML)
attracts importance in Banking?

1. Artificial intelligence (AI) is the ability of a computer, or a robot

controlled by a computer to do tasks that are usually done by humans
because they require human intelligence.
2. It can replace high-cost manpower and respond to customers without
showing adverse human emotions while performing repetitive tasks.
3. It is used in Mobile banking, Chat Bots, Data collection and analysis,
Risk management, Data security etc. by Banks.
4. Machine learning is a branch of AI based on the idea that systems can
learn from data, identify patterns and make decisions with minimal
human intervention.
5. Machine learning can analyze millions of data sets within a short
time.

28.How Block Chain Technology can be used in Banking?

1. Block chain is basically a distributed ledger. Multiple Banks /entities

can be connected as nodes of the Block Chain and can share data with
trust.
2. KYC / VKYC taken by one Bank / Entity can be used by others with
trust and can avoid multiple efforts.
3. Banks will be more secure and faster in Inter Bank Money Transfer
using Block Chain because of the Trust.
4. It can be used in Clearance and Settlement Systems.
5. Digital currency like Bit coin uses Block Chain.

29.How 5G Network will be helping Banks?

1. 5G Network is 20 times faster than 4G and Latency (delay) is near

Zero.
2. Transaction authentication using Facial Matching / Voice Biometrics
can be done in 5G to avoid fraud.
3. Augmented Reality / Virtual Reality features of 5G will create a
feeling of being inside the branch without visit.

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4. Video Analytics can be done in 5G for HNI identification, customer
satisfaction analysis, target marketing, Fraud detection etc.
5. Videos and Photos can travel over the network easily.

30.How Cloud Migration will be useful for Banks?

1. As per Ease 4.0 guidelines of GOI, PSBs will have to fast-track the
migration of their IT systems to secure cloud-based solutions in line with
board approved policies and the regulatory framework.
2. Bank can improve flexibility, scalability and serve customer faster by
cloud adoption. Banks are expected to cut costs on maintenance.
3. The security features like Infrastructure security, data security,
Application security and Identity Access Manager etc. are taken care by
cloud service provider.

31.Digitisation is always associated with Cyber Security issues.

What are they and how to handle it?

1. Stealing of Card data from ATM with external device is Skimming.

Replacement of Magnetic Stripe Card with Chip Card has resolved this
issue.
2. Compromise of Card / Net Banking credentials through Vishing is
another issue. Bank will not ask for Card details / OTP / CVV /PIN /
Password etc. alone can resolve the issue.
3. Phishing is another type of fraud, where Fraudsters create page like
Bank’s Net Banking site and share the link with the customers.
Personalized message is mitigating this. Customers should be educated
not to click any links received in email / SMS.
4. Juice Jacking is an attack where fraudsters steal mobile data using
USB based mobile charging ports at public places. Customers should be
educated not to use USB based charger.

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 32.How are Ease 8.0 directions going to help Bank?

EASE 8.0 marks the latest milestone in the government’s ongoing

initiative to strengthen the public sector banking system. The theme
focuses on “Tech-enabled, Customer-first, and Smart Banking.” It aims
to enhance operational efficiency through data analytics, artificial
intelligence, and automation. Under EASE 8.0, public sector banks are
encouraged to adopt advanced digital tools for faster credit delivery and
fraud risk management. It promotes a performance-driven culture and
improved governance practices. The reform also focuses on financial
inclusion and credit outreach to MSMEs, agriculture, and retail sectors.
With customer-centric innovations and seamless digital services, EASE
8.0 represents a transformative step toward building a robust,
transparent, and future-ready banking ecosystem.

33.Crypto-Currency: New Form of Monetary System

1. Crypto/digital/virtual currency, designed to secure monetary

transactions by using cryptography, is gaining popularity these days
because they provide privacy protection, cost-effectiveness and lower
entry barriers which can be used as an alternative to banking systems.
2. Every transaction using crypto currency is transparent, autonomous
and secure. Crypto currency as it is managed by its own network. It is
eco-friendly as it is paperless.
3. But crypto currencies have their own set of associated risks like most
people are not aware of how to use it and hence become vulnerable to
hacking. One of the biggest disadvantages is that there is no legal formal
entity or a central issuer who issues and regulates them in India.
4. Denounced in many countries because of their use in grey and black
markets. The growth and expansion of these currencies in the
unregulated policy environment may lead to illicit trade and other
criminal activities such as Terror Financing; tax evasion etc. also raised
red flags among the security and law enforcement agencies.
5. Owing to this unstable and nascent phase, crypto currencies have a
long way to go before they gain and replace traditional currencies as a
tool for global commerce.

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 34.Social Media: Blessing or Curse for the Society

1. Social media these days has facilitated a lot in reshaping

communication industry and redefining the ways in which we
communicate and express ourselves.
2. People have embraced social media so persistently that it has become
an integral part of our lives now.
3. Increase in the usage of Smartphone and social media leads to mental
distractions, self-injurious behaviour and suicidal tendency especially
among the youth.
4. Every social media has two sides bright and dark it can either be a
help or a hindrance depending on the way how people use it.
5. On the other hand, there have also been various negative
consequences through social media platforms. As the reach of social
media is increasing, there’s both real and fake information to be found
via social content. People can find fake news lay out as real.
6. There have also been instances of data leakage and breach of privacy
of its users.
7. Thus, there is a need to strictly regulate the flow of misinformation,
abuse, fake news etc. If social media is regulated properly, it will bring
enormous benefits for everyone.

35.NET PROMOTER SCORE (NPS)

1. The idea of NPS was developed by Fred Reichheld, partner at Bain &
Company in 2003.
2. NPS measures customer loyalty. NPS is a customer loyalty metric that
measures customers' willingness to return for another purchase as well
as to make a recommendation to their family, friends, or colleagues.
3. NPS Analysis classifies customers into three types - Promoters,
Passives, and Detractors. Responses are rated on a 0-10 scale.
4. Net Promoter Score scores can range from -100 (all detractors and no
promoters) to 100 (all promoters and no detractors). The closer to 100,
the better.
5. Many banks have already embraced the NPS developed by Bain &
Company, as the best methodology for measuring customer loyalty.

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6. Net Promoter Score Analysis survey helps to identify what these
detractor and passive customers expect out of the business.

36.DEALING WITH UNAUTHORIZED ELECTRONIC DEBIT

TRANSACTIONS

1. Increase of digital payment brings conveniences to the customers and

these conveniences also bring with it the possibility of fraud, the
possibility of error, and the pace at which these transactions move.
2. Unauthorized electronic debits can be divided into three heads.
Electronic Transactions where, negligence of a customer, contributory
fraud / negligence / deficiency on the part of bank & no deficiency either
on the part of the bank nor the customer but lies elsewhere in the system.
3. The role and responsibility of all stake holders, i.e., a customer, a
Bank, RBI as a regulator and the Government for safeguarding from
unauthorized electronic debit is very crucial for making customer feel
safe about carrying out electronic banking transactions.
4. Government of India has launched a national cybercrime reporting
portal called www.cybercrimeportal.com. Through this portal or through
a Toll-Free Number 1930, a victim can report cybercrime complaints. It
is a portal developed by Ministry of Home Affairs (MHA), Government
of India.
5. Our Bank, as per instructions from Government of India, Ministry of
Home Affairs, has created Cyber Cell in each LHO which works 24 X 7
basis. This Cell is headed by AGM (Surveillance) as a nodal officer with
a team of officials.
6. The instances of unauthorized electronic transactions can be
minimized by more and more awareness campaigns, creating suitable
framework for identifying actual unauthorized electronic transaction and
restoring the amount by the bank to the eligible customer quickly and in
cases of cyber frauds, by retrieving the defrauded amount from all types
of financial institutions, i.e., Banks, Financial Institutions or payment
wallets.

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 37.OPEN BANKING

1. Open Banking is an innovative financial practice where banks allow

third-party providers to access their customers' financial information
through APIs (Application Programming Interfaces). It allows
consumers to share their financial information securely with other banks,
financial institutions, or third-party providers.
2. APIs act as a bridge between the bank and third-party providers to
provide real-time access to customer data, such as account information,
transaction history, and spending habits. This data can then be used to
provide financial services that are more personalized, convenient, and
cost-effective.
3. Open banking is expected to promote innovation, competition, and
collaboration within the financial services industry. It also offers
consumers greater control over their financial data and the ability to
share it with a range of service providers.
4. The future of Open Banking looks promising; with many experts
predicting that it will transform the financial services industry in the
coming years. It could be the next game-changer in banking industry as
many countries around the world already implementing Open Banking
regulations.
5. As the use of APIs becomes more widespread, open banking is
expected to become a key enabler of digital transformation in the
financial services industry.
6. However, the future of Open Banking also depends on the ability of
regulators to balance the needs of consumers and businesses while
protecting their data privacy and security.
7. The Reserve Bank of India (RBI) has been proactive in promoting
Open Banking in India. In 2016, the RBI formed a working group to
examine the feasibility of open banking in India. The group
recommended the adoption of a phased approach to implementing open
banking, with a focus on ensuring the security and privacy of customers'
financial data.
8. One of the primary challenges of open banking is ensuring the
security and privacy of customers' financial data.

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9. Another challenge is the need for standardization and interoperability
between different systems and providers.
10. Finally, there is a need for greater awareness and education among
consumers and businesses about the benefits and risks of open banking.
This will require greater efforts by regulators, banks, and third-party
providers to educate consumers about the use of APIs and how to protect
their financial data.

38.EFFICIENCY RATIOS OF BANKS

1. Efficiency ratios are an important measure of a bank's financial

performance. They indicate how effectively a bank is using its resources
to generate profits.
2. Cost to Income Ratio (CIR) - It measures the operating costs of a
bank as a percentage of its total income. For instance, if the total income
of ABC Bank is Rs.100 and the operating cost is ₹ 40, then the cost-to-
income ratio is 40%.
3. A lower Cost to income ratio implies that a bank is operating more
efficiently or can generate higher profits at a lower cost.
4. Return on Assets (ROA)-It measures a bank's profitability with its
total assets. If the bank's earnings after tax is ₹ 37 and the total assets are
₹10000, the return on assets will be 0.37%.
5. A higher ROA means that the bank is generating more profits for
every single asset it is holding.
6. Return on Equity (ROE) - This ratio measures the profitability of a
bank relative to its shareholders' equity. A higher ROE indicates that a
bank is generating more profits for every rupee of shareholders' held
equity.
7. Net Interest Margin (NIM) - It measures the gap between a bank's
interest income and its interest expenses, divided by its total assets. If
the Net Interest Margin is higher, it suggests that the bank can earn more
interest income on its assets.
8. Expenses to Income Ratio-Is calculated by dividing the operating
expenses by the operating income generated i.e.net interest income plus
the other income. It is an important ratio determining the profitability of

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a bank. A lower operating expense ratio (OER) is more desirable
because it means that expenses are minimized with respect to income.
9. Capital Adequacy Ratio (CAR) - Is the ratio of a bank's capital in
relation to its risk weighted assets and current liabilities. It is decided by
central banks and bank regulators to prevent commercial banks from
taking excess leverage and becoming insolvent in the process. The ratio
of Capital Adequacy Ratio is as follows:
10. CAR = Tier 1 Capital + Tier 2 Capital / Risk-Weighted Assets.
11. Provisioning coverage ratio (PCR) refers to the percentage of
funds created against NPAs. A higher PCR ratio reflects that the bank
has sufficient capital to withstand asset quality pressures and will not
need significant incremental capital in case of extreme stress. It is the
percentage of funds that a bank sets aside for losses due to bad debts.
12. The formula of PCR Ratio is Provision Coverage Ratio = Total
provisions / Gross NPAs.

39.MONETARY POLICY

1. Monetary Policy is a set of tools used by central banks of various

countries to regulate the supply and availability of money.
2. The monetary policy also oversees and controls the cost and
distribution of credit in the economy.
3. The primary objective of a monetary policy is ensuring stability in
prices, ensuring controlled expansion of bank credit and money supply.
4. The central bank uses the monetary policy to control the rates of
interest in the economy and in turn, promotes savings and investment in
the country. Through this, the central bank ensures that a healthy cash
flow is maintained within the economy.
5. The central bank uses the monetary policy to maintain a balance
between demand and supply of goods and services.
6. An expansionary policy is also known as a loose monetary policy, as
the central bank loosens monetary tools like interest rates, with the aim
of increasing the supply of money and credit in the economy.
7. A contractionary policy is also known as a tight monetary policy, as
the central bank tightens various tools of monetary policy with the
objective of reducing inflation and ensuring stability in the economy.

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8. Tools of Monetary Policy:
9. Repo Rate is the rate at which the Reserve Bank of India provides
liquidity to participants of Liquidity Adjustment Facility, i.e., to
scheduled commercial banks, against the collateral of government
securities and other approved securities.
10. Reverse Repo Rate is the rate at which the Reserve Bank of India
absorbs excess liquidity from banks, against the collateral of government
securities.
11. Bank Rate is the rate at which the central bank rediscounts or buys
bills of exchange or any other commercial papers. It acts as the penal
rate that is charged on banks for non-maintenance of cash reserve ratio
and statutory liquidity ratio.
12. Cash Reserve Ratio (CRR) is the average daily balance that a bank
is required to maintain with the central bank as a percentage of its net
demand and time liabilities.
13. Statutory Liquidity Ratio (SLR) is the minimum percentage of
assets (government securities, cash and gold) that every bank should
maintain against its demand and time liabilities.
14. Open Market Operations (OMO) is the outright sale or purchase
of government securities by the Reserve Bank, to inject/absorb durable
liquidity in the banking system.

40.SBI’s Green Banking and Sustainability Initiatives

1. As India’s largest Public Sector bank, State Bank of India (SBI) has
embarked on its sustainability journey with an objective to create a
positive impact on the environment.
2. Green Banking and Sustainability have long been areas of priority and
in an early delineation of this approach; SBI had enunciated its Green
Banking Policy a decade back.
3. SBI has developed the State Bank of India ESG Financing Framework
in January 2023 under which the bank intends to issue green, social,
sustainability bonds and loans and use the proceeds to finance or
refinance projects that are expected to create positive environmental and
social impact in India.

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4. SBI’s ESG Framework defines eligibility criteria in the following 10
green categories: 1. Biodiversity 2. Circular Economy and Eco- Efficient
Projects 3. Clean Transportation 4. Climate Change Adaptation 5.
Energy Efficiency 6. Green Buildings 7. Living Natural Resources and
Land Use Projects 8. Renewable Energy 9. Sustainable Water and
Wastewater Management 10. Waste Management and Resource
Efficiency.
5. The Framework also defines eligibility criteria in the following 7
social categories: 1. Access to Essential Services 2. Affordable Basic
Infrastructure 3. Affordable Housing 4. Employment Generation
including through SME Financing and Microfinance 5. Food Security 6.
Socio-economic Advancement and Empowerment.
6. SBI has partnered with international organizations, such as the World
Bank, KFW German Development Bank and the European Investment
Bank Group, to promote responsible banking and use the lines of credit
extended by these organizations to fund projects that have clear social or
environmental impact, such as affordable housing projects, renewable
energy projects and projects that promote energy efficient alternatives in
real estate.

41.ACCOUNT AGGREGATOR: IS IT ANOTHER

REVOLUTION?

1. Account Aggregator is a digital platform that enables users to

consolidate their financial information from multiple financial
institutions in one place. It is an innovative technology solution
introduced by the RBI to facilitate the sharing of financial data between
different financial institutions, such as banks, insurance companies,
mutual funds, and other financial institutions. It is a consent based eco
system.
2. Account Aggregators (AAs): The account aggregator is the RBI
regulated Nonbanking Financial Company that facilitates individuals
accessing information securely and digitally and sharing the same from
one financial intuition to other regulated financial institutions in the AA
network.

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3. No data can be shared without the consent of the individual and they
act as mediators between Financial Information Providers (FIPs) and
Financial Information Users (FIUs) but function as a “data blind pipe” to
pass the information.
4. ReBIT- (Reserve Bank Information Technology Pvt. Ltd): It is a
100% subsidiary of RBI and was set up by the Reserve Bank of India,
for its IT and cyber security needs and to ensure the cyber resilience of
the Indian banking system. As far as the AA ecosystem is concerned,
ReBIT has defined standard API (Application Programming Interface)
and other technical specifications to be used by AA, FIU (Financial
Information User), and FIP (Financial Information Provider).
5. Financial Information providers (FIPs): These are the institution that
holds data and share the customer’s financial information with the
Financial Information user (FIU) after getting the request of the same
from the customer through the account aggregator.
6. Financial Information Users (FIUs): They are the institution that
receives the digitally signed data from the FIPs through the account
aggregator at the request of the individual. They use these data for other
services to be availed by that individual.
7. SBI (State Bank of India) being the leader in the banking system in
India needs to play the leading role to make this framework successful
and all our staff must stay updated to leverage the business potential
offered by this system.

42.DOMESTIC SYSTEMICALLY IMPORTANT BANKS (D-SIBs)

1. Failure of these banks has the potential to cause significant disruption

to the essential services they provide to the banking system, and in turn,
to the overall economic activity.
2. Therefore, the continued functioning of SIBs is critical for the
uninterrupted availability of essential banking services to the real
economy.
3. Additional risks posed by SIBs- they are perceived as banks that are
“Too Big To Fail” (TBTF). SIBs enjoy certain advantages in the funding
markets.

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4. The DSIB framework focuses on the impact that the distress of failure
of banks will have on the domestic economy.
5. Higher Capital Requirements for D-SIBs. The need for a higher
capital buffer comes at a time when the central bank analyzed how
problems in one bank could affect others in its financial stability report.
6. SBI, HDFC & ICICI banks identified as D-SIBs.

43. Role of Banks in Achieving a $5 Trillion Economy

Banks will play a crucial role in helping India achieve the vision of a $5
trillion economy. They function as the backbone of economic
development by providing credit to key sectors such as industry,
infrastructure, agriculture, and services. Banks support capital formation,
entrepreneurship, and innovation through financial assistance and
advisory services. Faster loan processing, digital banking services, and
fintech partnerships enhance financial efficiency and business growth.
By extending credit to MSMEs and supporting export-oriented
businesses, banks help boost production and global competitiveness.
Additionally, banks ensure financial inclusion by reaching underserved
segments through digital platforms and outreach programs. A strong,
efficient, and technology-driven banking system will accelerate
economic growth and help India achieve its $5 trillion goal.

44. Data Governance

1. Data is raw facts; the word “raw” is used to indicate that the facts
have not yet been processed to reveal their meaning. Information is
processed data based on which critical decisions are taken.
2. Data governance is a set of processes which ensures that important
data assets are formally managed throughout the enterprise. Data
Governance encompasses the People, Process & Information
Technology required to create a consistent and proper handling of Data.
3. As per the Data Governance Policy, DGC to be conducted Bi-
Monthly and to be chaired by appropriate authority as per policy. DGC
meeting held at Circle/AO/RBO/Branch is expected to brainstorm and
generate ideas/suggestions/feedback relating to data quality.

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4. Maintain strict privacy of Customer Data. Doing Things Right at Very
First Instance. Capturing of correct and complete Data in the source
system. Don’t ask for any Personal Data from Customers, which are not
required for the intended banking purpose. Obtain consent from the
customer and enter the same in IT Systems, wherever required.
5. Maintain quality of Customers Data in terms of accuracy,
completeness, and timeliness (viz. regular KYC updation). Follow the
Banks instructions related to Data Sharing (e.g., SOP on Data Sharing).
6. Maintaining strict vigilance over Staff / Vendors for any potential
misuse of Personal Data or any vulnerability which may lead to data
breach/leakage. This being a new area keeps us updated with the latest
Regulatory / Statutory developments.

45. AML-CFT GUIDELINES

1. AML/CFT department headed by a General Manager as Principal

Officer came into existence on 24.06.2014. MD (R, C & SARG) is the
Designated Director of the Bank and is responsible for implementation
of overall compliance with PML Act 2002.
2. Principal Officer: Responsible for monitoring all transactions in the
Bank, submitting five Mandatory Reports (i.e. CTR, NTR, CBWTR,
CCR & STR) to FIU-IND under the PML Act, sharing of information
and maintaining close liaison with Law Enforcement Agencies (LEA)
and Financial Intelligence Unit – India (FIU-IND).
3. Indian Cybercrime Coordination Centre (I4C) was established by
MHA, in New Delhi as a nodal point to curb Cybercrime in the country.
I4C focuses on tackling all the issues related to Cybercrime for the
citizens, which includes improving coordination between various Law
Enforcement Agencies and the stakeholders, driving change in India's
overall capability to tackle Cybercrime and to improve citizen
satisfaction levels.
4. The three stages of Money Laundering are: PLACEMENT- Moving
funds away from their direct association with the crime. LAYERING-
Disguising the trail to make it harder to follow. INTEGRATION-
Making the money available to the criminals from what seem to be
legitimate sources.

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5. Money mules typically receive money (by way of cash or transfer)
from a third party in their bank account and transfer it to another one or
withdraws in cash and gives it to someone else, either for a
commission/remuneration or as an assistance or help to someone. In
some other cases the money mules open accounts, avail INB/QR code
product and sell the accounts to the cybercriminals for a fee.
6. Red Flag Indicator is a warning sign indicates something suspicious.
Two types of Alerts: - based on online and offline red flag indicators.
Online red flag indicators are system generated through AMLOCK
Software based on various business rules/scenarios and related to
transaction in accounts. Offline red flag indicator which are non-system
generated i.e. out of transaction/attempted transaction alerts identified
through in person unusual behaviour, false paper/documents etc.
7. Customer due diligence is the process of identifying your customers
and checking their identifiers by using various OVDs who they are. Dow
Jones Factiva provides the facility to check the Reverse Adverse Media.
8.According to Financial Action Task Force (FATF) “TBML is the
process of disguising the proceeds of crime and moving value through
the use of trade transactions in an attempt to legitimize their illicit
origins.” Moreover, TBML is one of the main methods by which
criminal organizations and terrorist financiers move money for the
purpose of disguising its origins and integrating it back into the formal
economy.
9. A weapon of mass destruction is a nuclear, radiological, chemical,
biological, or other device that is intended to harm many people.
Proliferation Financing facilitates the movement and development of
proliferation sensitive goods (Dual Use Goods).
10. Filing of Suspicious Transactions Report (STR) is Bank’s obligation
under PML Act, 2002. Once the branch staff identifies the suspicion as
per the Offline RFIs, they must report the same through One Page STR
to AML/CFT Jaipur.
46. VIGILANCE GUIDELINES

1. Vigilance means being watchful and alert. Vigilance also means

being cautious in dealing with different types of situations and

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transactions. Simply means be watchful & prevent dangers of any kind.
It starts with individual who has a role to play.
2. Adherence to systems & procedures is a must. Supervision & control
systems are made effective at all levels. In view of fast changing
globally interdependent business environment, every organization needs
a system of vigilance.
3. Preventive vigilance: The caution exercised, to take all preventive
measures well before happening of a fraud/irregularity. Detective
vigilance: The caution exercised after happening of a
transaction/situation, to investigate and find out irregularities, if any, for
necessary action. Punitive vigilance: The caution exercised after
happening of a situation or conclusion of a transaction. The purpose is
to punish the guilty.
4. Vigilance is not an investigation but prevention. It is not an enquiry.
Absence of preventive vigilance may lead to frauds.

47. Digital Banking Transformation in India

Digital Banking Transformation in India Digital banking has

revolutionized how customers interact with banks. The adoption of
mobile and internet banking platforms has reduced the need for physical
branch visits. The Reserve Bank of India (RBI) and NPCI have
supported this transformation through UPI, NEFT, RTGS, and Bharat
Bill Payment System. Banks are increasingly using Artificial
Intelligence for chatbots and fraud detection. Digital onboarding and e-
KYC have simplified account opening. Cybersecurity has become a top
priority to protect data. The shift also supports paperless operations and
cost efficiency. Rural penetration is improving through digital literacy
programs. The role of digital banking in financial inclusion is
remarkable. Overall, it represents the future of Indian banking.

48. Unified Payments Interface (UPI) – India’s Digital Revolution

UPI has become the backbone of India’s digital payment ecosystem. It

allows instant fund transfer between bank accounts using smartphones.
The convenience and zero-cost nature of UPI transactions have

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increased its adoption exponentially. The RBI and NPCI continue to
enhance UPI features such as UPI-Lite and UPI for international use. It
supports QR-based merchant payments and government welfare
schemes. UPI has strengthened India’s move toward a cashless
economy. Banks benefit from better customer engagement and lower
transaction costs. Security layers such as 2-factor authentication ensure
safe payments. UPI’s global expansion will further enhance India’s
digital leadership. It is a benchmark for other nations.

49. Financial Inclusion through PM Jan Dhan Yojana

The Pradhan Mantri Jan Dhan Yojana (PMJDY) has been a game
changer in financial inclusion. It aims to provide every household access
to a basic savings bank account. This initiative has brought millions of
unbanked citizens into the formal banking system. RuPay cards,
overdraft facilities, and insurance benefits are added incentives. Banks
have played a crucial role in implementing this program. It has improved
savings habits and digital literacy. Direct Benefit Transfers (DBT) under
government schemes reach beneficiaries efficiently. PMJDY accounts
have become a gateway to other financial products like insurance and
pensions. The scheme supports the vision of “Banking for All.” It
represents inclusive growth in action.

50. Cyber Security in the Banking Sector

With increasing digitization, cybersecurity has become critical for

banks. Cyber threats include phishing, ransomware, and identity theft.
The RBI has issued guidelines for IT risk management and data
protection. Banks have established dedicated cyber-security cells and
24×7 monitoring systems. Customer awareness campaigns educate users
about safe banking practices. Multi-factor authentication and biometric
systems add extra protection. Regular audits and penetration testing are
now mandatory. AI-based systems detect suspicious transactions in real
time. Collaboration with law enforcement helps in handling cybercrime
cases. A robust cyber-security framework ensures customer trust and
operational stability.

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 51. Artificial Intelligence and Machine Learning in Banking

AI and ML are transforming modern banking operations. Banks use AI

to analyze customer behavior and offer personalized products. Chatbots
and voice assistants provide instant support to customers. Machine
learning models help in credit scoring and fraud detection. Predictive
analytics improves loan recovery and reduces NPAs. AI also optimizes
risk management and investment strategies. Automation has reduced
manual errors and enhanced efficiency. However, banks must ensure
ethical AI use and data privacy. RBI encourages adoption while
maintaining regulatory oversight. AI integration is redefining the role of
employees toward more analytical and advisory functions.

52. Green Banking and Sustainable Finance

Green banking promotes environmentally responsible banking practices.

It encourages financing of renewable energy and eco-friendly projects.
Paperless transactions, digital statements, and e-receipts support
sustainability. Banks are integrating ESG (Environmental, Social, and
Governance) factors into credit assessment. The RBI’s sustainable
finance initiatives guide banks toward green lending. Green bonds and
carbon-neutral initiatives are gaining popularity. Branches are adopting
energy-efficient infrastructure. Staff are being trained on environmental
awareness. Customers are also motivated to adopt green habits through
incentives. Green banking aligns profitability with environmental
responsibility.
53. The Role of RBI in Monetary Policy and Inflation Control

The Reserve Bank of India plays a pivotal role in maintaining economic

stability. Through monetary policy tools, it controls money supply and
inflation. The repo and reverse repo rates influence lending and deposit
rates. Inflation targeting ensures price stability while supporting growth.
The Monetary Policy Committee (MPC) meets bi-monthly to review
economic trends. The RBI also manages liquidity through open market
operations. In recent years, it has balanced inflation control with post-

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pandemic recovery. It monitors the rupee’s exchange rate and external
sector stability. Effective monetary policy strengthens investor
confidence. Thus, RBI remains the guardian of India’s financial system.

54. Priority Sector Lending and Its Importance

Priority Sector Lending (PSL) ensures credit flow to critical sectors like
agriculture, MSMEs, and weaker sections. RBI mandates that banks
allocate 40% of adjusted net bank credit to PSL. It promotes inclusive
growth and supports employment generation. PSL helps rural
development and entrepreneurship. Specialized schemes like Mudra
Yojana empower small businesses. Banks face challenges in credit
appraisal and risk management in this segment. Technological tools now
assist in monitoring PSL targets. The government provides partial credit
guarantees to reduce default risks. PSL performance affects a bank’s
social responsibility rating. It’s a cornerstone of developmental banking
in India.

55. Non-Performing Assets (NPAs) – Causes and Remedies

NPAs represent loans that have stopped generating income for banks.
High NPAs weaken profitability and capital adequacy. Causes include
poor credit appraisal, economic slowdown, and willful defaults. The
Insolvency and Bankruptcy Code (IBC) provides a structured resolution
framework. Asset Reconstruction Companies (ARCs) buy and manage
stressed assets. RBI’s prudential norms ensure early recognition and
provisioning. Banks are adopting data analytics to predict potential
defaults. The use of digital monitoring tools improves loan tracking.
Strengthening internal audit systems is crucial. Reducing NPAs remains
a top priority for banking stability.

56.MSME Financing and Its Challenges

Micro, Small, and Medium Enterprises (MSMEs) are the backbone of

the Indian economy. They contribute significantly to GDP and
employment. However, MSMEs often face difficulty in accessing timely

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and adequate credit. Banks are using the Udyam Registration database
for easier verification. Government schemes like CGTMSE and Mudra
loans reduce collateral pressure. Digital lending platforms are helping
speed up loan approvals. Post-COVID, restructuring packages were
introduced to support MSMEs. Banks are advised to adopt cash-flow
based lending models. Capacity building of entrepreneurs ensures better
fund utilization. MSME support is vital for sustainable economic
growth.

57. Role of Women in Banking and Financial Empowerment

Women play an increasingly important role in India’s banking sector.

Many women now hold leadership positions in public and private banks.
Financial literacy programs focus on empowering women entrepreneurs.
Schemes like Stand-Up India and Mahila Samman Savings help
financial inclusion. Banks promote self-help groups (SHGs) through
microfinance. Digital access has enabled women to manage finances
independently. RBI and NABARD support gender-inclusive banking
models. Training programs enhance women’s participation in financial
services. Empowered women contribute to family and community
development. Their inclusion strengthens the entire financial ecosystem.

58. Impact of Global Economic Trends on Indian Banking

Global economic conditions influence India’s financial system. Changes

in US interest rates and crude oil prices affect inflation and rupee
stability. Foreign portfolio investment flows impact liquidity and stock
markets. Trade tensions and geopolitical risks create volatility. Indian
banks must align with global regulatory standards like Basel III.
Diversification and hedging help manage external risks. Collaboration
with global fintechs promotes innovation. The RBI monitors global
trends to maintain macroeconomic balance. A strong domestic market
acts as a cushion against global shocks. Banks must remain agile in
responding to global financial changes.

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 59. Customer Service Excellence in Modern Banking

Customer service is the heart of banking operations. Digital tools have

raised customer expectations for speed and accuracy. Banks are focusing
on personalized services through CRM systems. Feedback mechanisms
and grievance redressal systems ensure satisfaction. Employee training
on soft skills improves service quality. Transparent communication
builds trust. Technology has enabled 24×7 support through chatbots and
call centers. Customer experience is now a key performance metric.
Inclusive banking ensures that senior citizens and differently abled
persons are served better. Service excellence directly contributes to
brand loyalty and profitability.

60. Credit Risk Management in Banks

Credit risk is the possibility that a borrower fails to repay a loan.

Effective risk management ensures a healthy asset portfolio. Banks use
credit rating tools and scorecards for loan appraisal. The RBI’s
prudential guidelines require proper risk categorization. Diversification
of loan portfolios minimizes exposure. Continuous monitoring helps in
early detection of stress. Collateral evaluation and guarantees act as
safeguards. Stress testing and sensitivity analysis are used to assess risk.
Training officers play a vital role in implementing credit risk
frameworks. Sound credit management supports long-term profitability
and financial stability.

61.Financial Literacy and Inclusion Programs

Financial literacy helps citizens make informed decisions. Banks

conduct awareness camps in rural and semi-urban areas. RBI’s Financial
Literacy Centres (FLCs) promote basic banking knowledge. Digital
literacy is now a key focus due to growing online transactions.
Awareness of fraud prevention and safe digital banking is increasing.
School and college programs encourage saving and responsible
borrowing. Government initiatives like “RBI Kehta Hai” educate the
public. Financial inclusion through literacy leads to economic

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empowerment. Banks act as agents of social change. Financially aware
citizens strengthen the national economy.

62. Role of FinTech in Modern Banking

FinTech has redefined the banking landscape through innovation and

technology. These firms offer faster, cheaper, and more customer-centric
financial services. Collaborations between banks and FinTechs have led
to digital lending, robo-advisory, and automated KYC. FinTech
companies use data analytics to design customized loan products. The
RBI has launched a regulatory sandbox to encourage responsible
innovation. Payment gateways, wallets, and BNPL (Buy Now Pay Later)
services are reshaping consumer finance. Banks benefit by improving
efficiency and reducing operational costs. The rise of FinTech also poses
competition, pushing traditional banks toward digital upgrades. Data
security and compliance remain critical concerns. FinTech is the bridge
between traditional banking and future digital ecosystems.

63.Digital Rupee – India’s Central Bank Digital Currency (CBDC)

The Digital Rupee is India’s official Central Bank Digital Currency

introduced by the RBI. It aims to provide a secure, cost-effective, and
efficient alternative to physical cash. Unlike cryptocurrencies, it is fully
backed by the central bank. The pilot project began with select banks for
both wholesale and retail segments. The Digital Rupee enables instant
settlement without intermediaries. It reduces printing and distribution
costs of currency. The CBDC supports financial inclusion through easier
accessibility. Security features ensure transparency and prevent
counterfeiting. Challenges include user adoption and technological
infrastructure. The Digital Rupee represents a landmark in India’s
monetary evolution.

64.Role of NABARD in Rural Development

The National Bank for Agriculture and Rural Development (NABARD)

plays a vital role in uplifting rural India. It provides refinance to banks

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for agricultural and rural lending. NABARD supports projects related to
irrigation, rural infrastructure, and farm mechanization. It promotes Self-
Help Groups and Farmer Producer Organizations. Through financial
literacy programs, it encourages saving habits among farmers. The bank
also implements government schemes like RIDF and watershed
programs. NABARD’s interventions have improved credit access in
remote villages. It works closely with cooperative and regional rural
banks. Its initiatives contribute significantly to rural employment and
poverty reduction. NABARD stands as the backbone of India’s rural
credit system.

65. Evolution of Payment Banks and Small Finance Banks

Payment Banks and Small Finance Banks were created to deepen

financial inclusion. Payment Banks focus on small savings and digital
payments, while Small Finance Banks cater to micro and small
businesses. Both models help bring unserved populations into the formal
banking sector. They offer doorstep banking and technology-driven
solutions. The RBI closely monitors their capital adequacy and
compliance. These banks have promoted rural savings habits and digital
adoption. However, they face challenges in profitability due to limited
lending scope. Consolidation and digital partnerships are improving their
efficiency. Their success contributes to the inclusive growth of India’s
financial system.

66.Basel Norms and Banking Stability

Basel norms are international banking regulations developed by the

Basel Committee. They ensure financial stability by setting standards for
capital adequacy and risk management. Basel III emphasizes
maintaining adequate Tier 1 and Tier 2 capital. It also introduces
liquidity coverage and leverage ratios. Compliance with these norms
prevents bank failures during crises. The RBI has implemented Basel III
guidelines in India. Banks now maintain capital buffers to absorb
unexpected losses. Stress testing and disclosure improve transparency.

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Adherence to Basel norms enhances investor confidence. Overall, these
standards make banks resilient and globally competitive.

67. Corporate Governance in Banks

Corporate governance ensures ethical and transparent management in

banks. It involves accountability of the board, management, and
shareholders. RBI mandates independent directors and audit committees
for fair oversight. Sound governance prevents frauds and
mismanagement. Regular internal and external audits strengthen
integrity. Whistle-blower mechanisms protect against unethical
practices. Transparency in financial reporting builds stakeholder trust.
Training of employees on ethics enhances governance culture. The
reputation of a bank depends largely on its governance framework.
Strong governance fosters long-term stability and public confidence.

68. The Role of Technology in Credit Appraisal

Modern credit appraisal relies heavily on technology. Automated

systems evaluate borrower data within minutes. Banks use AI and big-
data analytics to assess repayment capacity. Digital documentation and
e-signatures speed up loan processing. Credit bureaus provide real-time
credit histories for accurate risk assessment. Technology reduces human
bias and errors in decision-making. Remote verification tools improve
accuracy and save time. Integration with government databases like GST
and Income Tax portals adds transparency. Training officers must
understand these tools for better evaluation. Tech-driven credit appraisal
ensures faster, safer, and more inclusive lending.

69. Financial Inclusion through Self-Help Groups (SHGs)

Self-Help Groups have been instrumental in empowering rural women

and poor communities. SHGs promote savings, credit discipline, and
collective decision-making. Banks collaborate with NGOs and
government agencies to support SHG-Bank Linkage Programs.
NABARD plays a central role in refinancing and training. SHGs enable

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micro-enterprise development through small loans. Women members
gain financial confidence and social status. Recovery rates in SHG
lending are usually high due to group accountability. Digital platforms
now facilitate SHG transactions and monitoring. Financial inclusion
through SHGs aligns with national development goals. It’s a sustainable
model of community-based finance.

70.Role of Credit Information Companies in Banking

Credit Information Companies (CICs) like CIBIL, Equifax, and

Experian play a crucial role in banking. They maintain credit records of
individuals and organizations. Banks use these reports for evaluating
loan eligibility. A good credit score helps customers access better loan
terms. CICs promote transparency and reduce default risks. Regular
updates ensure accuracy in financial data. Customers are encouraged to
review their reports for discrepancies. RBI regulates CIC operations to
protect consumer rights. With digital integration, credit reporting has
become real-time. CICs support responsible lending and a healthier
credit ecosystem.

71. Climate Risk and Banking Sector Preparedness

Climate change poses new challenges for banks and financial

institutions. Extreme weather events can disrupt agricultural and
industrial operations. Banks are integrating climate risk into their credit
assessment processes. Green finance and sustainable lending are gaining
importance. The RBI encourages disclosure of climate-related financial
risks. Environmental stress testing helps in portfolio diversification.
Banks finance renewable projects to reduce carbon footprint. Awareness
programs sensitize staff to environmental concerns. Global collaboration
is essential for climate- resilient finance. Addressing climate risk is now
part of a bank’s long-term sustainability strategy.

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 72. Financial Markets and Their Role in the Economy

Financial markets are vital for channeling savings into productive

investments. They include money, capital, and foreign exchange
markets. Banks act as intermediaries facilitating these flows. A well-
developed financial market supports economic growth. Instruments like
bonds, equities, and derivatives diversify investment options. RBI
regulates the money market to ensure liquidity. SEBI oversees the
capital market to protect investors. Technological platforms have made
trading faster and more transparent. Integration with global markets
attracts foreign investment. Financial markets reflect the overall health
of an economy.

73. The Concept of Digital Lending Platforms

Digital lending platforms have transformed credit delivery. They use

online interfaces for loan applications, verification, and disbursal.
Algorithms assess borrower profiles using alternative data such as utility
bills or online behavior. The process is faster and more customer-
friendly than traditional methods. Banks often partner with FinTechs to
expand reach. The RBI’s Digital Lending Guidelines ensure
transparency and data security. Borrowers receive instant loan decisions
with minimal documentation. However, customer awareness of hidden
charges and privacy remains important. Digital lending enhances access
to credit, especially for youth and small businesses.

74. Non-Banking Financial Companies (NBFCs) and Their

Significance

NBFCs complement banks in providing credit to diverse sectors. They

finance vehicles, housing, SMEs, and consumer goods. Their flexible
operations and niche focus make them important players. RBI regulates
NBFCs to ensure prudential standards. Post-IL&FS; crisis, governance
and liquidity norms have tightened. NBFCs now access funds through
securitization and co-lending models. Their digital transformation
improves customer service. Collaboration with banks strengthens the

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credit ecosystem. Despite challenges, NBFCs remain vital for financial
inclusion. They bridge the gap where banks have limited presence.

75. Role of Cooperative Banks in India’s Banking Structure

Cooperative banks are community-based financial institutions serving

local needs. They focus on agriculture, small trade, and rural credit.
These banks promote savings and provide low-cost loans to members.
Dual regulation by RBI and state governments ensures accountability.
Technological upgrades are modernizing cooperative operations.
Cooperative banks play a key role in grassroots financial inclusion.
Challenges include limited capital and governance issues. Capacity
building and digital adoption are essential for sustainability. Their
contribution to rural development remains significant. Cooperative
banking strengthens the social fabric of India’s financial system.

76. Financial Fraud Prevention and Vigilance in Banks

Financial frauds threaten trust and stability in the banking system.

Common frauds include phishing, ATM skimming, and fake
documentation. RBI issues guidelines for fraud detection and reporting.
Banks maintain vigilance departments for proactive monitoring.
Employee awareness programs reduce internal risks. Data analytics tools
now detect suspicious patterns early. Periodic audits and surprise
inspections enhance control. Collaboration with law enforcement helps
in legal action. Customers are advised to follow cyber-safety practices.
A strong vigilance framework safeguards both customers and banks.

77. Risk-Based Supervision in Banks

Risk-Based Supervision (RBS) is a modern framework adopted by RBI

to ensure effective oversight of banks. Instead of focusing only on
compliance, it evaluates the overall risk profile of each bank. RBS
identifies high-risk areas such as credit, liquidity, market, and
operational risks. Supervisors assess how banks manage these risks and
allocate resources accordingly. This approach encourages banks to

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develop internal risk management systems. RBS improves transparency
and accountability at all levels. It also helps in early detection of
vulnerabilities. RBI’s SPARC framework (Supervisory Program for
Assessment of Risk and Capital) supports this method. Continuous
monitoring ensures timely corrective action. RBS thus promotes a safer
and more resilient banking environment.

78. Role of Training and Human Resource Development in Banks

Training is vital for enhancing the efficiency and professionalism of

bank employees. With constant changes in technology and regulation,
continuous learning is essential. Training programs improve knowledge
in credit appraisal, customer service, and compliance. HR department
identifies skill gaps and design customized modules. In or SBI, we have
a separate vertical called STU (Strategic Training Unit) for training and
development related issues. Digital platforms and e-learning have made
training more accessible. Soft skills training builds better customer
relations. Banks also focus on leadership development for future
managers. A well-trained workforce reduces operational risks.
Performance-linked training creates motivation and accountability.
Human resource development is the foundation of a strong banking
organization.

79. Role of Payment Systems in Indian Economy

Payment systems form the backbone of a modern financial economy.

India has witnessed revolutionary growth in digital payments through
UPI, NEFT, and IMPS. These systems enable instant, secure, and cost-
effective fund transfers. RBI and NPCI regulate payment infrastructure
to ensure safety and efficiency. Interoperable QR codes have simplified
merchant payments. Government schemes encourage cashless
transactions in rural areas. Innovations like UPI-Lite and offline
payments support financial inclusion. Payment systems enhance
transparency and reduce the shadow economy. The growing acceptance
of digital transactions strengthens formal credit flow. Payment systems
are truly the lifeline of India’s digital economy.

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 80.Importance of CASA Deposits for Banks

CASA stands for Current Account and Savings Account deposits. They
are crucial for banks as they represent low-cost funds. A higher CASA
ratio improves a bank’s net interest margin and profitability. Savings
accounts promote long-term relationships with customers. Digital
channels make it easier to open and manage CASA accounts. Banks
design attractive products and interest rates to attract more deposits.
Cross-selling of loans and insurance is easier through CASA customers.
However, competition from digital banks and payment apps is rising.
Maintaining CASA growth requires superior customer service. Effective
CASA management ensures liquidity and stability. It’s a vital indicator
of a bank’s operational strength.

81. Asset-Liability Management (ALM) in Banks

Asset-Liability Management (ALM) is a key process in financial risk

control. It ensures that a bank’s assets and liabilities are properly
matched in terms of maturity and interest rates. ALM helps manage
liquidity, interest rate, and currency risks. The ALCO (Asset Liability
Committee) reviews and adjusts balance sheet strategies. RBI guidelines
require banks to maintain adequate liquidity buffers. ALM models
predict cash flow mismatches and take corrective measures.
Technology- driven dashboards now assist in real-time monitoring. Poor
ALM can lead to liquidity crises and profitability issues. Effective ALM
strengthens a bank’s stability and investor confidence. It’s an essential
part of prudent financial management.

82. Rural Credit and Agricultural Financing

Rural credit supports agriculture and allied activities in India’s vast rural
sector. Institutional credit ensures timely supply of funds to farmers.
Banks, RRBs, and cooperatives provide short-term and long-term
agricultural loans. Priority sector norms guarantee credit flow to rural
areas. Kisan Credit Card (KCC) is a flagship initiative to meet farm

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needs. NABARD refinances banks for agricultural lending. Challenges
include weather risk, crop failure, and loan recovery. Technology and
crop insurance help mitigate these issues. Digitization of land records
improves transparency. Adequate rural credit ensures food security and
inclusive growth.

83. The Concept of Co-Lending in Indian Banking

Co-lending is a partnership model between banks and NBFCs to

improve credit reach. Under this model, both entities share risk and
returns on loan portfolios. Banks benefit from NBFCs’ local network,
while NBFCs access cheaper bank funds. The RBI introduced co-
lending guidelines in 2020 for transparency. This model primarily
targets MSMEs, housing, and priority sectors. Digital platforms simplify
loan origination and monitoring. Co-lending enhances credit flow to
underserved segments. Proper due diligence and coordination are
essential for success. It’s a win-win framework that strengthens financial
inclusion. Co-lending is shaping the future of collaborative finance.

84. The Importance of KYC and AML Compliance

KYC (Know Your Customer) and AML (Anti-Money Laundering) are

vital components of safe banking. These processes prevent misuse of the
financial system for illegal activities. RBI mandates strict KYC norms
for all customers. Banks collect proof of identity, address, and income
for verification. Regular updates help maintain accurate records. AML
frameworks detect suspicious transactions through monitoring tools.
Non-compliance can lead to penalties and reputational loss. Digital KYC
and video verification make the process customer friendly. Staff training
is crucial to ensure compliance. Strong KYC-AML practices protect the
integrity of the banking system.

85. Role of Bank Mergers in Strengthening the Sector

Bank mergers have been a major reform in Indian banking. The

government merged several public sector banks to create stronger, more

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efficient institutions. Mergers lead to economies of scale and better
capital utilization. They improve branch network coverage and
technological capacity. However, cultural and HR integration are major
challenges. RBI ensures smooth operational transition during mergers.
Customers benefit from enhanced service offerings and wider ATM
access. Mergers also improve global competitiveness of Indian banks.
The long-term goal is to create globally significant banking entities.
Consolidation ensures a more stable and resilient financial system.

86. Importance of Customer Relationship Management (CRM) in

Banks

CRM helps banks build lasting relationships with their customers. It

involves collecting and analyzing customer data to offer personalized
services. CRM tools improve cross-selling and customer retention.
Digital platforms track customer preferences in real time. Good CRM
ensures faster complaint resolution and better engagement. Employees
are trained to maintain empathy and responsiveness. Loyalty programs
enhance brand value. Data privacy and ethical marketing are essential
components. CRM contributes to profitability by improving satisfaction
and reducing churn. A customer-centric culture defines successful
modern banking.

87.Artificial Intelligence in Fraud Detection

AI plays a crucial role in combating fraud in the banking sector.

Machine learning algorithms analyze patterns and detect anomalies in
real time. AI helps identify unusual spending behavior or multiple failed
login attempts. Chatbots alert customers about potential threats instantly.
Predictive analytics enables early intervention before losses occur. AI-
based systems continuously learn from past fraud cases. This automation
reduces manual workload and response time. RBI encourages banks to
adopt advanced fraud monitoring tools. AI enhances both security and
customer confidence. It’s an indispensable weapon against digital-era
financial crimes.

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 88. Role of Insurance in Financial Stability

Insurance provides financial protection against uncertainties and risks. It

complements banking by securing lives, assets, and businesses. Banks
distribute insurance products under the Bancassurance model. This
generates non-interest income and benefits customers. Life, health, and
general insurance coverage promote social security. The IRDAI
regulates the insurance sector for consumer protection. Digital platforms
simplify policy purchase and claim settlement. Awareness programs
increase penetration in rural areas. Insurance supports economic stability
during natural disasters. A robust insurance sector strengthens the entire
financial ecosystem.

89. Mobile Banking and Its Growing Importance

Mobile banking has become the most preferred mode of financial

transaction. It offers convenience, speed, and real-time access to
services. Customers can transfer funds, pay bills, and invest using
smartphones. The rise of UPI and mobile wallets has boosted digital
adoption. RBI and NPCI ensure interoperability and transaction safety.
Banks continuously upgrade their apps for better user experience. Rural
outreach through mobile banking promotes financial inclusion.
Biometric authentication enhances security for customers. Awareness
programs help users avoid frauds. Mobile banking is the driving force
behind India’s cashless journey.

90. Impact of Artificial Intelligence on Customer Experience

AI has completely changed how customers interact with banks.

Chatbots, voice assistants, and predictive service models offer
personalized experiences. AI understands customer needs through data
patterns. It enables 24×7 service availability with minimal human
intervention. Personalized product recommendations improve
satisfaction. AI-driven systems reduce wait times and errors. Feedback
analysis helps banks continuously improve. However, ethical use of AI

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and data privacy remain crucial. Staff must be trained to complement AI
systems effectively. AI ensures that customer service becomes faster,
smarter, and more human-centric.

91. Role of Microfinance in Poverty Alleviation

Microfinance institutions (MFIs) provide small loans to low-income

groups, especially women. They promote entrepreneurship and income
generation in rural areas. Microfinance supports self-employment and
reduces dependence on moneylenders. Group-based lending ensures
peer accountability and high recovery rates. RBI regulates MFIs to
ensure responsible lending practices. Digital microfinance improves
efficiency and transparency. Many banks partner with MFIs for priority
sector targets. Financial literacy programs support micro-entrepreneurs.
Microfinance contributes directly to poverty reduction and
empowerment. It’s a proven tool for inclusive economic growth.

92. Challenges and Opportunities in Digital Banking

Digital banking offers speed, convenience, and accessibility. However, it

also faces challenges like cybercrime, system outages, and digital
illiteracy. Banks must balance innovation with data protection.
Continuous staff training and security upgrades are necessary.
Opportunities lie in expanding digital services to rural areas. AI and
blockchain can enhance operational efficiency. Collaboration with
FinTech firms brings flexibility. Regulators are working on frameworks
for safe innovation. Digital banking has the potential to make India a
fully cashless economy. Addressing challenges responsibly will unlock
immense growth opportunities.

93. Credit Guarantee Schemes for MSMEs

Credit guarantee schemes protect banks against losses from MSME

defaults. The Credit Guarantee Fund Trust for Micro and Small
Enterprises (CGTMSE) is a key initiative. It allows collateral-free loans
up to ₹10 crore for eligible enterprises. This encourages banks to lend

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more confidently to small businesses. Government and RBI
continuously review guarantee limits. The scheme supports
entrepreneurship and job creation. It bridges the trust gap between banks
and small borrowers. Simplified claim processes improve effectiveness.
Integration with digital lending platforms speeds up disbursal. Credit
guarantee schemes are vital for MSME sector development.
The government’s new initiative to enhance MSME loan coverage up to
10 crore is a landmark reform. It aims to strengthen small and medium
enterprises, which are the backbone of the Indian economy. By
increasing credit limits, entrepreneurs will gain better access to funds for
expansion and innovation. The move encourages job creation and
supports the ‘Make in India’ mission. It will also help banks like SBI to
widen their MSME lending portfolio. With simplified credit assessment
and digital monitoring, transparency will improve. This initiative reflects
the government’s vision for a self-reliant and vibrant MSME sector.

94. Role of Inflation in Banking Operations

Inflation influences interest rates, deposit mobilization, and lending

decisions. High inflation reduces purchasing power and deposit growth.
RBI uses repo rate adjustments to control inflation. Banks adjust loan
and deposit rates accordingly. Inflation affects bond yields and
investment returns. Stable inflation encourages long-term financial
planning. Persistent inflation can lead to higher NPAs if costs rise for
borrowers. Communication from RBI helps manage market
expectations. Banks must continuously monitor inflation trends.
Effective inflation management ensures economic stability and sound
banking operations.

95. The Importance of Ethics in Banking

Ethics form the moral foundation of banking operations. Banks handle

public funds and therefore must act with utmost integrity. Ethical
conduct ensures transparency and fairness in all dealings. Training on
professional ethics is part of employee development. RBI and
government emphasize zero tolerance for corruption. Ethical banking

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builds customer trust and long-term relationships. Whistleblower
protection encourages accountability. Decision-making guided by
honesty prevents reputational risks. CSR (Corporate Social
Responsibility) initiatives reflect ethical commitment. Upholding ethics
safeguards both customers and institutions.

96. The Future of Indian Banking

The future of Indian banking is shaped by innovation, inclusion, and

sustainability. Digital transformation will dominate operations across all
segments. AI, blockchain, and cloud computing will enhance efficiency.
Focus on ESG and green finance will define responsible banking.
Personalized financial services will improve customer experience. Banks
will increasingly collaborate with FinTech and insure-tech firms. Rural
and semi-urban expansion will continue through digital channels.
Training officers will play a crucial role in upskilling employees. RBI’s
balanced regulation will ensure stability amid change. The future
belongs to smart, inclusive, and technology-driven banking.

97. Union Budget of India 2025

The Union Budget 2025 reflects the government’s strong commitment to

inclusive growth and economic stability. It emphasizes capital
expenditure, digital infrastructure, and green energy. The focus on rural
development and job creation is expected to support long-term growth.
The budget also highlights fiscal discipline and responsible borrowing.
Tax reforms aim to simplify compliance and promote investment.
MSMEs and the agricultural sector have received special attention. The
banking sector is expected to play a major role in implementing new
credit-linked schemes. Overall, this budget seeks to accelerate India’s
journey toward a $5 trillion economy while ensuring social welfare.
• In this Budget, the proposed development measures span ten
broad areas focusing on Garib, Youth, Annadata and Nari
(GYAN).
• Prime Minister Dhan-Dhaanya Krishi Yojana - Developing Agri
Districts Programme.

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 • A Makhana Board will be established in the state of Bihar to
improve production, processing, value addition, and marketing
of makhana.
• To improve access to credit, the credit guarantee cover will be
enhanced: for Micro and Small Enterprises, from Rs 5 crore to
Rs10 crore.
• Government will set up a National Manufacturing Mission
covering small, medium and large industries for furthering
“Make in India”.
• PM SVANidhi will be revamped with enhanced loans from
banks, UPI linked credit cards with Rs 30,000 limit, and
capacity building support.
• The limit for tax deduction on interest for senior citizens is
being doubled from the present Rs 50,000 to Rs 1 lakh.
Similarly, the annual limit of Rs 2.40 lakh for TDS on rent is
being increased to Rs 6 lakh.
• To taxpayers up to Rs 12 lakh of normal income (other than
special rate income such as capital gains) tax rebate is being
provided in addition to the benefit due to slab rate reduction in
such a manner that there is no tax payable by them.

98. Role of Banks in Achieving an Aatmanirbhar Bharat

Banks will play a vital role in building an “Aatmanirbhar Bharat” by

supporting self-reliance and economic empowerment. They provide
credit to MSMEs, startups, farmers, and rural entrepreneurs, enabling
job creation and local manufacturing. Banks also support priority sector
financing and government schemes such as Mudra, PMEGP, PM-
SVANidhi, and Stand-Up India. Digital banking services help increase
financial inclusion and promote cashless transactions. By offering
financial literacy programs and supporting women entrepreneurs, banks
help build a strong socio-economic foundation. Through timely credit,
technology-based services, and inclusive policies, banks are key drivers
in making India a self-sufficient and competitive economy.

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 99. Impact of Reducing Repo Rate on Customer Lending and
Banking Business

A reduction in the repo rate generally leads to lower lending rates for
customers. This makes loans more affordable and encourages borrowing
for housing, automobiles, education, and businesses. As a result, demand
for credit increases, supporting economic growth and improving
customer satisfaction. However, reduced rates may also put pressure on
banks’ net interest margins. Banks need to balance growth in lending
with the impact on profitability. Lower interest rates can also stimulate
consumer spending and investments. Overall, a repo rate cut benefits
borrowers and boosts credit demand, but banks must manage risks and
ensure sound credit practices to maintain financial health.

100.Banking Amendment Bill 2025

The Banking Amendment Bill 2025 aims to strengthen the banking

governance framework in India. It proposes enhancements in regulatory
oversight, improved transparency, and stronger accountability
mechanisms for financial institutions. With this amendment, the
government intends to ensure greater financial stability and protect the
interests of depositors. The reforms also focus on modernizing banking
operations to match global standards and support digital transformation.
A stronger compliance environment will help reduce risks such as fraud
and mismanagement. Additionally, this bill encourages healthy
competition among banks and promotes innovation in financial services.
Overall, the Banking Amendment Bill 2025 will build confidence in the
banking system and contribute to a robust and resilient financial sector.
• The Act introduces 19 amendments across five major banking
statutes: the Reserve Bank of India Act, 1934, the Banking
Regulation Act, 1949, the State Bank of India Act, 1955, and
the Banking Companies (Acquisition and Transfer of
Undertakings) Act, 1970 & 1980.
• The notification of the Act was published on 15 April 2025, and
key provisions are set to come into force from 1 August 2025.

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 • One major change is that the threshold for “substantial interest”
in a firm (by a bank director or official) is revised from Rs 5
lakh (which stood since 1968) to Rs 2 crore.
• The tenure of non-chairperson/non-whole-time directors in
cooperative banks is now extended from 8 years to 10 years,
improving governance continuity.
• The Act empowers banks to fix auditor fees independently,
thereby improving audit quality and reducing information
asymmetry in public sector banks.
• The Act brings cooperative banks under a more robust
regulatory framework aligned with constitutional norms (via the
97th Constitutional Amendment).
• From 1 November 2025, depositors in banks will be allowed to
nominate up to four persons for their bank deposit accounts or
lockers, improving depositor protection and ease of transfer.
• The Act aims to enhance governance standards, safeguard
depositors and investors, and improve audit quality in public
sector banks (PSBs).
• The amendments also mandate uniform reporting by banks to
the Reserve Bank of India and streamline nomination and safe-
custody rules for bank lockers and articles in safe custody.
• For someone in the banking sector (like at SBI), these reforms
mean enhanced accountability, stricter governance norms, more
transparent audits, and stronger depositor safeguards — thus
making this Act a key topic for managerial‐level knowledge.

101. GST Reform and “GST Savings Utsav”

The most recent significant Goods and Services Tax (GST) reforms have
been implemented in India w.e.f. September 22, 2025. The “GST
Savings Utsav” campaign marks an important reform in India’s taxation
system. It highlights the benefits of the simplified and technology-driven
GST structure. The reform has reduced compliance costs and improved
transparency in business transactions. Taxpayers now enjoy faster
refunds and easier filing processes. The celebration also promotes

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awareness among small traders and service providers. It encourages
voluntary compliance and broadens the tax base. The banking industry
benefits from digital GST integration for faster payments and record
maintenance. This initiative truly represents India’s progress toward an
efficient, transparent tax ecosystem.
• The Next-Gen GST reform came into force from 22 September
2025, launching a nationwide “GST Bachat Utsav” (Savings
Festival) to pass tax benefits to consumers.
• The GST slabs were simplified into primarily two broad rates
— 5% and 18% — while a separate 40% bracket was
introduced for luxury/sin goods to protect revenue.
• Around 90% of items earlier in the 28% slab moved down to
18%, and nearly 99% of items in the 12% slab moved to 5%,
yielding large rate reductions across many consumer goods.
• The government and industry estimates expect the combined
reforms to translate into annual consumer savings running into
lakhs of crores (industry reports cite ≈ ₹2.5 lakh crore in pass-
through/consumer relief as an illustrative figure).
• Sectors that gain most: FMCG and packaged foods (soaps,
snacks, coffee, chocolates), consumer durables (TVs, ACs),
automobiles, building materials (cement), and selected
agricultural equipment — all see lower GST incidence.
• Direct benefits to the Aam Janata: cheaper everyday items,
reduced bills for household goods and certain medical/insurance
items, and higher disposable income for poorer and middle
households.
• The government positioned this as both a festive savings
campaign (GST Bachat Utsav) and a structural simplification
(called “GST 2.0” / Next-Gen GST) to make compliance
simpler and markets more predictable.
• The government ran the GST Bachat Utsav campaign from 22
September 2025 (Navratri start) and industry commentary
referenced it as a ~100-day promotional period (Sept 22 – Dec
31, 2025) to encourage pass-through of savings.

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 SBI RESULTS (FY25, Q1FY26 & Q2FY26)

SBI RESULTS FY25 Q2FY 26

AS ON YOY/ AS ON YOY/
CHANGE CHANGE
PATAMETERS 31.03.25 HY/F 30.09.25 HY/F
IN IN
(Crores) Y (Crores) Y
Net Profit 70901 16.08% YOY 20160 9.97% YOY
Operating Profit 110579 17.89% YOY 31904 8.91% YOY
ROA 1.10% 1.15%
ROE 19.87% 20.21%
INCREA INCREAS
Net Interest Income (NII) SED BY 4.43% YOY ED BY 3.28% YOY
2.93%
NIM (Whole Bank) 3.09% 2.97% Q2FY 26 HY
3.05%
NIM (Domestic) 3.22% 3.09% Q2FY 26 HY
Credit Growth (Whole
Bank) 12.03% YOY 12.73% YOY
Domestic Advances 11.56% YOY 12.32% YOY
Foreign Office Advance
grew 14.84% YOY 15.04% YOY
Depostis (Whole Bank) 9.48% YOY 9.27% YOY
CASA 39.97% 6.34% YOY 39.63% 8.06% YOY
IMPROVED IMPROVE
Gross NPA 1.82% 42 bps YOY 1.73% D 40 bps YOY
IMPROVED IMPROVE
Net NPA 0.47% 10 bps YOY 0.42% D 11 bps YOY
IMPROVED IMPROVE
PCR (incl. AUCA) 92.08% 19 bps YOY 92.29% D 08 bps YOY
IMPROVED IMPROVE
PCR 74.42% 60 bps YOY 75.79% D 13 bps YOY
Capital Adequacy Ratio
(CAR) 14.25% FY25 14.62% Q2FY 26
Share of Alternate
Channel in total
transactions 98.20% FY25 98.60% H1FY26
Gross Advance 4220703 4419674
Gross Deposits 5382190 5591700
Total 9602893 10011374

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Dear Aspirants,
You are requested to go through all sections of this
booklet. Some questions from Rationale may appear in
For & Against and questions from For & Against may
appear in Rationale section also.
Along with this, Situational Analysis can also come as
Rationale or For & Against. Questions on Rationale,
For & Against may also come from the Essay Topics.
Therefore, I, request you all, “read this booklet in detail,
so that more and more of your questions can be solved.”

Thank You
&
Happy Learning
Roushan Raj Tiwary
Chief Manager (Faculty)
SBILD Purnea
Mob- 930 4255 930

Please visit: SBILD PURNEA || patna || Circle Website

https://circle.sbi/lho-pat/dept-spur/

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