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JAIIB PPB Unit 40 — Government Sponsored Schemes: 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 40 — Government Sponsored Schemes (Module B — Functions of Banks). The Mock Centre holds 56 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 B56 MCQs in the Mock Centre5 free belowPaper on 22 November 2026

Key facts examiners test from this unit

  1. SGSY → NRLM (2011) → DAY-NRLM (29-3-2016); 50% SC/ST, 15% minorities, 3% PwD; one woman per poor household; SHG-VO-CLF federation.
  2. Panchasutras (no collateral!); RF ₹10–15k (3-month-old SHGs); 6-month existence for loans; subvention ≤₹3 lakh @7% + 3% prompt (effective 4%).
  3. SHG credit: CCL DP 6×/8×/₹6 L/₹12 L (or term-loan doses); collateral & margin-free ≤₹10 lakh; ₹10–20 lakh under CGFMU; Mission Shakti = Odisha 2001.

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
NRLM replaced which scheme, and when did it become DAY-NRLM?
Why (b): NRLM replaced SGSY (the 2011 restructuring) and was renamed DAY-NRLM — Deendayal Antyodaya Yojana-NRLM — on 29 March 2016.
Question 2 of 5
PMJDY operates under the:
Why (a): PMJDY (Aug 2014) = the financial-inclusion mission — banking, remittance, credit, insurance, pension for all.
Question 3 of 5
MUDRA was set up in, and administers:
Why (b): MUDRA Ltd (SIDBI subsidiary, Apr 2015) runs PMMY — non-farm income-generating loans.
Question 4 of 5
MUDRA 'SHISHU' loans go:
Why (a): MUDRA 'SHISHU' loans go UP TO ₹50,000 — the first rung of the Shishu-Kishor-Tarun ladder.
Question 5 of 5
Match the administrator: APY, PMJJBY/PMSBY, PMMY are run through:
Why (b): Pension regulator, insurance companies, refinance subsidiary — three different engines.
0 of 5 answered.

Traps in this unit

Confusable AConfusable BThe difference
DAY-NRLMDAY-NULMRural (SGSY heir) vs urban (SJSRY heir)
50/15/3≥30%NRLM SC-ST/minority/PwD mix vs NULM women floor
Practise all 56 questions on Unit 40. 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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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.