Attempt JAIIB PPB Cased Study Practice Quiz and Download PDF

Q1 to Q2 Case Study: Ramesh Sharma, a farmer in Maharashtra, has enrolled under Pradhan Mantri Fasal Bima Yojana (PMFBY) for his kharif crops. Due to unprecedented floods, his entire crop of soybean gets destroyed. He files a claim with the insurance company through his bank.

Q1. Which of the following losses is NOT covered under PMFBY?

Q2. Is Aadhaar mandatory for enrolling under PMFBY?

Q3 to Q4Case Study: Mr. Pradeep Nair is a bank employee who has access to confidential customer data as part of his job. He is approached by a journalist who offers him money in exchange for details of a high-profile customer’s transactions. The journalist claims it is in the public interest.

Q3. What should Mr. Pradeep do in this situation?

Q4. Under which circumstances is a bank legally permitted to disclose customer information without consent?

Q5 to Q6 Case Study: National Motors Ltd. is classified as a large borrower with total credit facilities of Rs. 150 crore. The company wants to use SWIFT to transfer funds to its supplier in Germany. The bank’s IT team receives an unusual SWIFT message instruction that appears to have originated from National Motors’ account but contains some unusual formatting.

Q5. What is the primary function of the SWIFT network in international banking?

Q6. What should the bank’s IT team do if they suspect a fraudulent SWIFT message?

Q7 to Q8 Case Study: Mr. Krishnamurthy wants to start a small handicraft manufacturing unit. He approaches a bank under PMEGP (Prime Minister’s Employment Generation Programme). His proposed project cost is Rs. 20 lakhs. He belongs to the general category and his unit will be located in a rural area.

Q7. What is the capital subsidy (margin money) Mr. Krishnamurthy is entitled to under PMEGP?

Q8. What is the lock-in period for the margin money (subsidy) under PMEGP?

Q9 to Q10 Case Study: Horizon Developers, a real estate company, approaches South Indian Bank for a housing loan. The bank is evaluating the loan under the revised Priority Sector Lending (PSL) norms effective April 1, 2025. The property is located in Mumbai (population above 50 lakhs), and the loan applied for is Rs. 48 lakhs.

Q9. Will this housing loan qualify for Priority Sector classification under revised PSL norms?

Q10. Which of the following housing loans is NOT eligible for Priority Sector classification?

Q11 to Q12Case Study: Ms. Durga Devi, a visually impaired customer, approaches Central Bank of India to open a savings account. She lives alone and there is no one to accompany her as a witness. The bank officer is unsure how to proceed with the account opening formalities.

Q11. Can the bank open a savings account for Ms. Durga Devi despite her visual impairment?

Q12. Regarding cheque book facility for visually impaired persons, which statement is correct?

Q13 to Q14Case Study: XYZ Finance Ltd. (an NBFC) wants to register itself as an NBFC-MFI (Microfinance Institution) with RBI. The company has Net Owned Funds (NOF) of Rs. 4 crore and is registered in Assam (a North-Eastern state). Its qualifying assets constitute 80% of net assets.

Q13. Does XYZ Finance Ltd. meet the minimum NOF requirement for an NBFC-MFI?

Q14. Does XYZ Finance Ltd. meet the qualifying asset requirement for NBFC-MFI registration?

Q15 to Q16Case Study: Sunrise Bank receives a large cash deposit of Rs. 6 lakhs from an NGO named ‘Jeevan Seva’ on June 5th, and another cash deposit of Rs. 5 lakhs from the same NGO on June 28th. The bank’s compliance officer is examining the reporting obligations.

Q15. What reporting obligation does the bank have regarding the cash transactions by Jeevan Seva?

Q16. Under PMLA, what is the minimum imprisonment term for the offence of money laundering?

Q17 to Q18Case Study: ABC Bank’s ATM in Lucknow runs out of cash and remains non-functional for 12 hours during the month. A customer, Mr. Tanveer, is unable to withdraw cash from the ATM and complains to the bank.

Q17. What penalty does RBI impose on banks for ATM downtime due to cash-out exceeding 10 hours in a month?

Q18. If a customer suffers a financial loss due to a failed ATM transaction (amount debited but cash not dispensed), what is the bank’s obligation?

Q19 to Q20Case Study 25: Royal Marbles Ltd., a company with a borrowing account, is listed on the UN Sanctions List. The bank’s compliance team discovers this during routine screening of customer accounts.

Q19. What action should the bank immediately take upon discovering Royal Marbles Ltd. on the UN Sanctions List?

Q20. Which authority in India receives Suspicious Transaction Reports (STRs) filed by banks?