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JAIIB PPB Unit 35 — Personal Finance: Free MCQs with Explanations

By Swarnakshi Jha (ex-banker) · Updated 20 September 2026 · Paper 2 of the November 2026 cycle (22 November 2026)

This page is a free slice of our JAIIB PPB question bank for Unit 35 — Personal Finance (Module B — Functions of Banks). The Mock Centre holds 43 questions on this unit alone, every one with a why-right / why-wrong explanation; below are the facts examiners keep returning to, five of those questions to try, and the traps that cost marks.

PPB · Module B43 MCQs in the Mock Centre5 free belowPaper on 22 November 2026

Key facts examiners test from this unit

  1. Card system: five parties (holder-issuer-merchant-acquirer-network); associations = Visa/ MasterCard/RuPay; interest-free 15–51 days; add-on liability = principal holder; card dues = non-priority unsecured (90-day IRAC).
  2. Card regulation (MD 21 Apr 2022): ₹100-crore net worth to issue; KFS one-pager; EMV chip+PIN; unsolicited card = charge reversal + 2× penalty; closure in 7 working days (₹500/day); billing disputes — 30-day explanation; no-AFA CNP fraud reimbursed without demur; tokenisation hides card data; agent conduct = the bank's responsibility; BR Act penalties.
  3. Home loans: mortgage security, tenor ≤ 30 years, residents + NRIs; LTV slabs 90/80/75; value excludes stamp/registration (EWS/LIG ≤ ₹10 lakh exception); RWs 35% (small/low-LTV) — CRE-RH 75%.

5 free practice questions — tap an option

Five basic questions from this unit. Answers lock on the first tap, exactly as in the exam, and a short explanation opens underneath. The Mock Centre adds the moderate and tough questions, why every other option is wrong, the concept capsule and the exam tip — with your score and revision dates tracked.

Question 1 of 5
A credit card is essentially:
Why (b): A credit card is essentially a CHANNEL OF CREDIT DELIVERY — plastic-borne unsecured credit: spend now, pay at the bill.
Question 2 of 5
The interest-free credit period on a card is normally:
Why (b): The interest-free credit period on a card is normally 15 TO 51 DAYS — the float that vanishes the moment the balance revolves.
Question 3 of 5
The home-loan target group includes:
Why (c): The home-loan target group includes RESIDENTS AND NRIs BOTH — broad eligibility, with NRIs governed by FEMA norms.
Question 4 of 5
Consumer-loan repayment runs:
Why (b): Consumer-loan repayment runs 3 TO 5 YEARS — the standard EMI window on durables.
Question 5 of 5
Consumer loans finance:
Why (b): Consumer loans finance CONSUMER DURABLES and white goods — televisions, refrigerators, appliances; not houses or businesses.
0 of 5 answered.

Traps in this unit

Confusable AConfusable BThe difference
IssuerAcquirerCardholder's bank vs merchant's bank
AssociationAcquirerNetwork layer vs merchant-processing bank
Practise all 43 questions on Unit 35. The free demo opens a slice of every subject with the same explanations; the PPB Online-only pass unlocks all 3,280 PPB questions, the full and module mocks, Smart Revision and the Readiness Score for one year (₹1,299). Not sure where you stand? Take the free 10-question test first.
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← Unit 34: Laws Relating to Bill Finance · Unit 36: Priority Sector Advances → · All PPB units · JAIIB 2026 guide

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Independent study aid — not affiliated with, endorsed by, or sponsored by the Indian Institute of Banking & Finance (IIBF). Exam pattern, dates, fees and passing criteria are set by IIBF — always confirm the current rules at iibf.org.in. Regulatory figures verified as of September 2026; verify from official sources before relying on them in practice.