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"The post has been edited. I am adding the answer in a few moment(references to which you are going to find in the doubts section)"

Doubt:

I have found out the 'initial' arrangement as given in the answer.
However, I can't solve the 'rearrangement'.

I have started with A: Block no. 5 remains at original place. Thus, A
stays at original place.

Then I go to B: Swap positions with block no. 5. So A and B swap
positions.

Then I come to C: Swap positions with block 7 places above. If not
possible, swap positions with block two places below.

But there are no blocks either 7 places above C, nor 2 places below C.

Source: SBI PO Mains Examination Question

Question:

Directions [Set of 2 questions]: Anupam was playing with blocks. He had 14 blocks out of which only 6 had alphabets and numbers written on them. Rest of the blocks were blank, and nothing was printed on them. The alphabets were A, B. C. D. E and F. The numbers were 1. 2, 3, 4. 5 and 6 not necessarily in the same order. Any block had only 1 alphabet and only 1 number written on it. Anupam arranged all the blocks in a stack and then rearranged the blocks as per some rules related to the number on them. He rearranged the blocks in alphabetical order i.e. block A was moved first, followed by B and so on.

• F's position from the top of the stack was equal to D's position from the bottom of the stack. F was somewhere above D

• C was above D with a gap of 6 blocks in between them

• The block with value 2 was below F with a gap of 8 blocks in between them

• The number on E was thrice as that of the number on B

• The block kept 6th from the top initially, had the least value

• B was above E with a gap of 2 blocks in between them

• Number of blocks below B was equal to the number of blocks above A

• Block A had a value 2 more than that on block F

• A and C were kept at a gap of 1 block. The rules related to the rearrangement are as follows:

• The block with number 1: Swap positions with the block 7 positions above, if not possible, swap positions with the block kept 2 positions below

• The block with number 2: Swap positions with the block having number 5

• The block with number 3: Swap positions with the block 6 places above, if not possible; block remains at the original place

• The block with number 4: Swap positions with the block with number 1 on it • The block with number 5: Remains at the original place

• The block with number 6: Swap positions with the block kept one place above, if not possible, Swap positions with the block kept 1 place down

I remember I solved this and was going to post the solution; however, the answer is unique and it coincides with yours. And that doesn't seem like what you needed.

Anyway, to answer your question:

The task says exactly that there are 14 blocks, though only 6 of them are labeled with numbers & letters. You, however, trying to "Swap positions with block 7 places above. If not possible, swap positions with block two places below" forget about that. There are no labeled blocks at those places (in proper solution), yet there should be an unlabeled one at at least one of those places.