SBI PO Prelims English Reading Comprehension Practice Set

1. For decades, a borrower's financial history in India lay scattered across separate institutions: a savings account in one bank, a mutual fund folio with an asset manager, an insurance policy with yet another company. A lender assessing a small trader had little choice but to ask for printed statements, which were slow to collect, easy to tamper with and costly to verify. The Account Aggregator framework, licensed by the Reserve Bank of India, was designed to break this logjam. Under it, a regulated intermediary carries a customer's financial data from the institution that holds it to the institution that needs it, but only after the customer gives explicit, time-bound consent through a digital request. Crucially, the aggregator merely transmits the data in encrypted form; it is not permitted to read, store or sell it. Supporters argue that the system could be transformative for people with thin credit files, such as gig workers and first-time entrepreneurs, whose steady cash flows are visible in their accounts even if they have never taken a formal loan. Sceptics, however, warn that consent can become a formality if customers click 'accept' without understanding what they are sharing or for how long. The real test of the framework, therefore, will be less about its technology than about whether users can exercise genuine, informed control over their own information.

   Q1.What is the main idea of the passage?

   • A.The Account Aggregator framework allows intermediaries to store and sell customers' financial data to lenders.
   • B.Printed bank statements remain the most reliable way for lenders to judge a borrower.
   • C.Gig workers in India are unable to open savings accounts without an Account Aggregator.
   • D.The Account Aggregator framework can widen access to credit by letting customers share their financial data with consent, but its success depends on that consent being informed.
   • E.The Reserve Bank of India plans to replace all banks with a single data intermediary.

2. Q2.According to the passage, which of the following is an Account Aggregator NOT allowed to do?

   • A.Read or store the customer data it transmits
   • B.Carry data between two regulated institutions
   • C.Transmit data in encrypted form
   • D.Act only after the customer gives consent
   • E.Send data for a limited period agreed by the customer

3. Q3.Choose the word most similar in meaning to 'logjam' as used in the passage.

   • A.Forest
   • B.Shortcut
   • C.Surplus
   • D.Agreement
   • E.Deadlock

Start the test to answer these. Correct answers and explanations are shown after you submit.