STATE BANK OF INDIA JUNIOR ASSOCIATES CLERICAL
EXAM-ALL QUESTIONS AND ANSWERS | PRACTICE Q&A
2026/2027 | A+ GRADED |COMPREHENSIVE EXAM
GUIDE 2026&2027
1. A customer deposits a cheque drawn on another bank into an SBI account. Which
process primarily determines when the amount can be made available to the customer?
A. Clearing and settlement of the cheque ✔
B. Conversion of the cheque into a demand draft
C. Creation of a fixed deposit
D. Closure of the customer's account
Answer: A
The cheque must pass through the applicable clearing and settlement process before the
proceeds can ordinarily be credited as cleared funds.
2. A customer asks a Junior Associate why the bank requires identity and address
information when opening an account. Which explanation is most appropriate?
A. It is required only to calculate interest
B. It supports customer identification and regulatory compliance ✔
C. It guarantees approval of every transaction
D. It eliminates the need for transaction records
Answer: B
Customer identification information supports KYC requirements and helps banks meet
regulatory and financial-crime-control obligations.
3. A savings account customer wants to earn interest while keeping funds invested for a
specified period. Which product is most directly suited to this requirement?
A. Current account
B. Cash credit account
C. Fixed deposit ✔
D. Suspense account
Answer: C
A fixed deposit is designed for placing funds for a specified tenure in return for interest
according to the applicable terms.
,4. A customer notices an unfamiliar debit-card transaction and reports it immediately.
What should the bank employee do first?
A. Ignore it until the monthly statement arrives
B. Ask the customer to make another transaction
C. Close every account automatically
D. Follow the bank's prescribed unauthorized-transaction reporting and verification process ✔
Answer: D
Prompt reporting and adherence to the prescribed verification and dispute process help limit
risk and establish the facts surrounding the transaction.
5. Which financial institution is responsible for monetary policy in India?
A. Reserve Bank of India ✔
B. Securities and Exchange Board of India
C. Insurance Regulatory and Development Authority of India
D. National Payments Corporation of India
Answer: A
The Reserve Bank of India is India's central bank and is responsible for monetary policy and
major banking-system functions.
6. A customer transfers money electronically from one bank account to another. Which
characteristic best describes an electronic funds transfer?
A. It necessarily requires a physical cheque
B. It moves funds through an electronic payment system ✔
C. It can occur only between branches of the same bank
D. It always requires cash withdrawal first
Answer: B
Electronic payment systems allow funds to be transferred through digital instructions rather
than requiring physical cash or paper instruments.
7. A customer wants to withdraw cash using a card from an automated machine. Which
security measure should the customer protect most carefully?
A. Account-opening date
B. Branch address
C. PIN ✔
D. Bank holiday calendar
Answer: C
,The personal identification number is a critical authentication credential and should never be
disclosed to another person.
8. A customer receives a message asking for their OTP and threatening immediate account
closure unless they respond. What is the safest response?
A. Share the OTP with the sender
B. Forward the message to friends
C. Reply with account details for verification
D. Avoid sharing the OTP and report the suspected fraud through official channels ✔
Answer: D
Legitimate banking personnel should not require customers to disclose confidential
authentication credentials such as OTPs through unsolicited messages.
9. Which account is generally designed for frequent business transactions rather than
routine personal savings?
A. Current account ✔
B. Recurring deposit
C. Fixed deposit
D. Minor savings account
Answer: A
Current accounts are commonly used by businesses and customers requiring frequent
transactions and operational payment facilities.
10. A bank employee receives confidential customer information while processing a loan
application. What is the most appropriate practice?
A. Discuss it with friends after work
B. Share it on social media without names
C. Use and disclose it only for legitimate authorized purposes ✔
D. Give it to another customer as an example
Answer: C
Customer information must be handled confidentially and accessed or disclosed only when
authorized and necessary for legitimate banking purposes.
11. If the principal amount invested is ₹20,000 at a simple annual interest rate of 6% for
two years, what is the interest?
A. ₹1,200
B. ₹2,400 ✔
C. ₹2,600
D. ₹3,200
, Answer: B
Simple interest equals Principal × Rate × Time = ₹20,000 × 6% × 2 = ₹2,400.
12. A branch receives 480 applications and 15% require additional documentation. How
many applications require additional documentation?
A. 62
B. 68
C. 72 ✔
D. 84
Answer: C
15% of 480 is 0.15 × 480 = 72 applications.
13. A customer deposits ₹12,500 and later withdraws ₹4,750. What balance remains,
ignoring other transactions?
A. ₹7,250
B. ₹7,500
C. ₹8,250
D. ₹7,750 ✔
Answer: D
₹12,500 − ₹4,750 = ₹7,750.
14. A branch processed 240 transactions in the morning and 180 in the afternoon. What
percentage of the day's 420 transactions occurred in the morning?
A. 57.14% ✔
B. 52.50%
C. 60.00%
D. 62.50%
Answer: A
The morning proportion is 240 ÷ 420 × 100 = approximately 57.14%.
15. A customer pays ₹9,600 after receiving a 20% discount. What was the original marked
price?
A. ₹10,800
B. ₹11,200
C. ₹12,000 ✔
D. ₹12,400
Answer: C
EXAM-ALL QUESTIONS AND ANSWERS | PRACTICE Q&A
2026/2027 | A+ GRADED |COMPREHENSIVE EXAM
GUIDE 2026&2027
1. A customer deposits a cheque drawn on another bank into an SBI account. Which
process primarily determines when the amount can be made available to the customer?
A. Clearing and settlement of the cheque ✔
B. Conversion of the cheque into a demand draft
C. Creation of a fixed deposit
D. Closure of the customer's account
Answer: A
The cheque must pass through the applicable clearing and settlement process before the
proceeds can ordinarily be credited as cleared funds.
2. A customer asks a Junior Associate why the bank requires identity and address
information when opening an account. Which explanation is most appropriate?
A. It is required only to calculate interest
B. It supports customer identification and regulatory compliance ✔
C. It guarantees approval of every transaction
D. It eliminates the need for transaction records
Answer: B
Customer identification information supports KYC requirements and helps banks meet
regulatory and financial-crime-control obligations.
3. A savings account customer wants to earn interest while keeping funds invested for a
specified period. Which product is most directly suited to this requirement?
A. Current account
B. Cash credit account
C. Fixed deposit ✔
D. Suspense account
Answer: C
A fixed deposit is designed for placing funds for a specified tenure in return for interest
according to the applicable terms.
,4. A customer notices an unfamiliar debit-card transaction and reports it immediately.
What should the bank employee do first?
A. Ignore it until the monthly statement arrives
B. Ask the customer to make another transaction
C. Close every account automatically
D. Follow the bank's prescribed unauthorized-transaction reporting and verification process ✔
Answer: D
Prompt reporting and adherence to the prescribed verification and dispute process help limit
risk and establish the facts surrounding the transaction.
5. Which financial institution is responsible for monetary policy in India?
A. Reserve Bank of India ✔
B. Securities and Exchange Board of India
C. Insurance Regulatory and Development Authority of India
D. National Payments Corporation of India
Answer: A
The Reserve Bank of India is India's central bank and is responsible for monetary policy and
major banking-system functions.
6. A customer transfers money electronically from one bank account to another. Which
characteristic best describes an electronic funds transfer?
A. It necessarily requires a physical cheque
B. It moves funds through an electronic payment system ✔
C. It can occur only between branches of the same bank
D. It always requires cash withdrawal first
Answer: B
Electronic payment systems allow funds to be transferred through digital instructions rather
than requiring physical cash or paper instruments.
7. A customer wants to withdraw cash using a card from an automated machine. Which
security measure should the customer protect most carefully?
A. Account-opening date
B. Branch address
C. PIN ✔
D. Bank holiday calendar
Answer: C
,The personal identification number is a critical authentication credential and should never be
disclosed to another person.
8. A customer receives a message asking for their OTP and threatening immediate account
closure unless they respond. What is the safest response?
A. Share the OTP with the sender
B. Forward the message to friends
C. Reply with account details for verification
D. Avoid sharing the OTP and report the suspected fraud through official channels ✔
Answer: D
Legitimate banking personnel should not require customers to disclose confidential
authentication credentials such as OTPs through unsolicited messages.
9. Which account is generally designed for frequent business transactions rather than
routine personal savings?
A. Current account ✔
B. Recurring deposit
C. Fixed deposit
D. Minor savings account
Answer: A
Current accounts are commonly used by businesses and customers requiring frequent
transactions and operational payment facilities.
10. A bank employee receives confidential customer information while processing a loan
application. What is the most appropriate practice?
A. Discuss it with friends after work
B. Share it on social media without names
C. Use and disclose it only for legitimate authorized purposes ✔
D. Give it to another customer as an example
Answer: C
Customer information must be handled confidentially and accessed or disclosed only when
authorized and necessary for legitimate banking purposes.
11. If the principal amount invested is ₹20,000 at a simple annual interest rate of 6% for
two years, what is the interest?
A. ₹1,200
B. ₹2,400 ✔
C. ₹2,600
D. ₹3,200
, Answer: B
Simple interest equals Principal × Rate × Time = ₹20,000 × 6% × 2 = ₹2,400.
12. A branch receives 480 applications and 15% require additional documentation. How
many applications require additional documentation?
A. 62
B. 68
C. 72 ✔
D. 84
Answer: C
15% of 480 is 0.15 × 480 = 72 applications.
13. A customer deposits ₹12,500 and later withdraws ₹4,750. What balance remains,
ignoring other transactions?
A. ₹7,250
B. ₹7,500
C. ₹8,250
D. ₹7,750 ✔
Answer: D
₹12,500 − ₹4,750 = ₹7,750.
14. A branch processed 240 transactions in the morning and 180 in the afternoon. What
percentage of the day's 420 transactions occurred in the morning?
A. 57.14% ✔
B. 52.50%
C. 60.00%
D. 62.50%
Answer: A
The morning proportion is 240 ÷ 420 × 100 = approximately 57.14%.
15. A customer pays ₹9,600 after receiving a 20% discount. What was the original marked
price?
A. ₹10,800
B. ₹11,200
C. ₹12,000 ✔
D. ₹12,400
Answer: C
