The correct answer to the question is option 3, `State Bank of India`. The State Bank of India (SBI), which is one of the leading public sector banks in India, has introduced a facility where customers can withdraw up to Rs. 1000 from any shop or trader with a point-of-sale (PoS) terminal.

To understand the options provided in the question, let`s quickly review each one:

Option 1: Bank of Maharashtra - This is not the correct answer as the question specifically mentions a leading public sector bank, and Bank of Maharashtra may not be considered as one of the leading banks in India.

Option 2: Punjab National Bank - This is not the correct answer as the facility mentioned in the question is not related to Punjab National Bank, but to another bank.

Option 3: State Bank of India - This is the correct answer as the SBI has introduced the facility of withdrawing up to Rs. 1000 from any shop or trader with a point-of-sale (PoS) terminal.

Option 4: Bank of Baroda - This is not the correct answer as Bank of Baroda is not the bank mentioned in the question.

In conclusion, the correct option for the leading public sector bank that allows withdrawal of up to