100+ Free CBI Credit Officer Practice Questions

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2026 Statistics

Key Facts: CBI Credit Officer Exam

120 MCQs

Total questions in the online objective test (30 per section)

Official Notification

No Penalty

Negative marking is not applicable for incorrect objective answers

Official Exam Scheme

₹850

Application fee for General, OBC, and EWS candidates

Official Notification

1 Year

Duration of the PGDBF course before scale-I officer appointment

Recruitment Guidelines

CBI Credit Officer selection features a 120-question online objective exam (no negative marking) and a descriptive English test, followed by an interview. Application fee is ₹850 for general and ₹175 for SC/ST/PwBD/Women.

Sample CBI Credit Officer Practice Questions

Try these sample questions to test your CBI Credit Officer exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Read the following passage and answer the question: 'The implementation of the Insolvency and Bankruptcy Code (IBC) has significantly shifted the debtor-creditor relationship in India. Previously, promoters could retain control of distressed assets indefinitely, leaving banks with limited recourse. Under the IBC framework, a time-bound resolution process forces promoters to either restructure debt or face liquidation, enhancing credit discipline.' Which of the following best summarizes the primary shift described in the passage?

A.Promoters are now guaranteed to retain control of their distressed assets.

B.The IBC has reduced the power of banks and increased debtor leverage.

C.A time-bound resolution process has transferred balance of power towards creditors by enforcing discipline on promoters.

D.Liquidation has become the mandatory first step for all distressed assets in India.

Explanation: The passage highlights that the IBC shifts the power from debtors (promoters) to creditors (banks) by introducing a time-bound resolution framework that enforces credit discipline and prevents promoters from retaining indefinite control over distressed assets.

2Based on the economic passage regarding the Insolvency and Bankruptcy Code (IBC), what was the main disadvantage faced by banks prior to its introduction?

A.Banks were forced to liquidate healthy companies without trying restructuring.

B.Promoters could hold onto distressed assets indefinitely, leaving banks with minimal legal recourse.

C.The RBI prohibited banks from declaring accounts as non-performing assets.

D.Borrowers were allowed to set their own interest rates during distress periods.

Explanation: The passage notes that previously, promoters could retain control of distressed assets indefinitely, which left banks with limited recourse to recover their dues.

3What can be inferred from the passage regarding the impact of the Insolvency and Bankruptcy Code (IBC) on promoter behavior?

A.Promoters are likely to borrow more recklessly because of the ease of liquidation.

B.Promoters will be more proactive in servicing their debt to avoid losing control of their businesses.

C.Promoters will bypass bank loans entirely and rely solely on equity markets.

D.Promoters will focus exclusively on short-term profits to repay loans immediately.

Explanation: Because the IBC introduces a real threat of losing operational control or facing liquidation, promoters are incentivized to maintain credit discipline and proactively manage debt obligations.

4Identify the part of the sentence containing a grammatical error: 'The board of directors (A) / have approved the new credit policy (B) / in its meeting held yesterday (C) / without any dissent (D).'

A.The board of directors

B.have approved the new credit policy

C.in its meeting held yesterday

D.without any dissent

Explanation: The noun phrase 'The board of directors' is a collective noun acting as a single unit, which is further confirmed by the singular pronoun 'its' in part C. Therefore, it requires the singular verb 'has' instead of 'have'.

5Identify the part of the sentence containing a grammatical error: 'If the treasury department (A) / would have forecasted the rate hike (B) / they would have hedged (C) / their bond portfolio in time (D).'

A.If the treasury department

B.would have forecasted the rate hike

C.they would have hedged

D.their bond portfolio in time

Explanation: This sentence is a third conditional statement. The structure for third conditional is 'If + subject + past perfect (had + V3), subject + would have + V3'. Thus, 'would have forecasted' should be replaced with 'had forecasted'.

6Identify the part of the sentence containing a grammatical error: 'Not only did the manager audit (A) / the physical cash balance (B) / but also verifies the digital ledgers (C) / before signing the report (D).'

A.Not only did the manager audit

B.the physical cash balance

C.but also verifies the digital ledgers

D.before signing the report

Explanation: The sentence has a parallel structure issue. The first clause uses the past tense ('did... audit'), so the second clause linked by 'but also' must also be in the past tense ('verified' instead of 'verifies').

7Fill in the blank with the most appropriate word: 'The regulator has decided to ________ the penalty on the bank after it demonstrated complete compliance with the new guidelines.'

A.exacerbate

B.waive

C.impose

D.forfeit

Explanation: The word 'waive' means to refrain from insisting on or enforcing a claim or penalty. Given that the bank demonstrated complete compliance, the regulator would choose to excuse or waive the penalty.

8Fill in the blanks with the most suitable pair of words: 'Due to ________ economic conditions, the bank decided to adopt a ________ approach to extending corporate credit.'

A.prosperous, reckless

B.volatile, cautious

C.booming, conservative

D.stagnant, aggressive

Explanation: In volatile (unstable) economic conditions, it is logical for a bank to adopt a cautious (careful) approach to extending credit to manage risk.

9Choose the phrasal verb that best fits the sentence: 'The branch manager asked the loan operations team to ________ the pending credit applications by the end of the day.'

A.clear out

B.clear up

C.clear off

D.clear away

Explanation: The phrasal verb 'clear up' means to solve, complete, or put in order, which is standard when dealing with backlog or pending applications. Alternatively, 'clear' or 'clear up' is used to complete pending tasks.

10For the following sentence in a cloze test, choose the correct word for Blank [1]: 'The Reserve Bank of India has [1] rules on credit card issuing partners to safeguard customer data.'

A.relaxed

B.tightened

C.abolished

D.postponed

Explanation: To safeguard customer data, the central bank would make rules more secure or stringent, which is represented by 'tightened'.

About the CBI Credit Officer Exam

The Central Bank of India Credit Officer PGDBF exam is conducted for recruitment of Scale-I Credit Officers. Candidates go through an online exam of 120 MCQs and a descriptive test, followed by an interview. Selected candidates undergo a one-year Post Graduate Diploma in Banking and Finance (PGDBF) at an empanelled institute and are appointed as Officers in Junior Management Grade Scale-I. This practice test bank contains exactly 100 high-quality practice questions spanning English, Quant, Reasoning, and Banking/Financial Awareness.

Questions

120 scored questions

Time Limit

2 hours (120 minutes) + 30 minutes descriptive

Passing Score

Sectional and overall cutoffs are determined by the bank based on performance.

Exam Fee

₹850 for General/OBC/EWS candidates; ₹175 for SC/ST/PwBD/Women candidates (excluding transaction charges). (Central Bank of India (CBI))

CBI Credit Officer Exam Content Outline

25%

English Language

Reading comprehension, fillers, error detection, close tests, and para-jumbles (30 questions).

25%

Quantitative Aptitude

Data interpretation, arithmetic topics, series, quadratic equations, and banking math (30 questions).

25%

Reasoning Ability

Syllogisms, inequality, analytical reasoning, coding, blood relations, puzzles, and seating arrangements (30 questions).

25%

General & Banking Awareness

Banking industry, financial news, RBI policies, terms, union budget, and current affairs (30 questions).

How to Pass the CBI Credit Officer Exam

What You Need to Know

Passing score: Sectional and overall cutoffs are determined by the bank based on performance.
Exam length: 120 questions
Time limit: 2 hours (120 minutes) + 30 minutes descriptive
Exam fee: ₹850 for General/OBC/EWS candidates; ₹175 for SC/ST/PwBD/Women candidates (excluding transaction charges).

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

CBI Credit Officer Study Tips from Top Performers

1Work on Quantitative Aptitude topics like data interpretation, simple/compound interest, and percentage calculations, as these are critical for a Credit Officer's daily work.

2Stay updated with General & Banking Awareness, specifically the last 6 months of financial current affairs, RBI monetary policies, and recent banking term developments.

3Practice reasoning puzzles and seating arrangements daily to build speed and accuracy under sectional timing pressure.

4Prepare for the descriptive test by practicing essay writing on current economic/social issues and standard banking/formal letter writing formats on a computer keyboard.

5Since there is no negative marking, attempt all 120 questions. However, manage sectional timing carefully to ensure you do not miss easier questions.

Frequently Asked Questions

What is the pattern of the CBI PGDBF exam?

The exam consists of 120 MCQs (30 marks each for English, Quantitative Aptitude, Reasoning Ability, and General & Banking Awareness) to be solved within sectional time limits. There is also an English Descriptive test consisting of 2 questions (Essay & Letter writing) worth 30 marks total.

Is there negative marking in the CBI Credit Officer exam?

No. Unlike IBPS or SBI PO exams, there is generally no negative marking in the Central Bank of India PGDBF Credit Officer online examination.

What are the age and educational qualifications required?

Candidates must be between 20 and 30 years of age. They must possess a Bachelor's degree (graduation) in any discipline from a recognized university with a minimum of 60% marks (55% for SC/ST/OBC/PwBD).

What is the fee for the CBI Credit Officer application?

The application fee is ₹850 for General, OBC, and EWS category candidates, and ₹175 for SC, ST, PwBD, and female candidates (exclusive of GST).

How are candidates recruited after passing the exam and interview?

Selected candidates must complete a 1-year PGDBF (Post Graduate Diploma in Banking & Finance) course which consists of 9 months of classroom training and 3 months of internship. Upon successful completion, they are appointed as Credit Officers (JMG Scale I) in the Central Bank of India.

100+ Free CBI Credit Officer Practice Questions

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