Banking Awareness Session for all Exams

Banking Awareness for All Bank Exams: SBI, IBPS, RBI 2022-23 Exams

complete study notes and study material of the Banking Awareness for all the upcoming bank examinations.
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Banking Awareness for All Bank Exams: SBI, IBPS, RBI 2022-23 Exams

Banking is one of the most prestigious government jobs in India. And every government banking job offers good pay, top-grade bonuses and perks and job stability. You could even reach the top of the bank’s hierarchy if you are lucky enough. 

But to succeed in a banking exam like RBI, NABARD, SBI PO, RRB and IBPS PO, you need to have a sound strategy. One of the crucial ways to clear the banking exams is to prepare the banking awareness section efficiently. 

This section covers current affairs, economic awareness and all that has been happening in the world of banking. 

Banking Awareness & Current Affairs Syllabus

The Banking Awareness and Current Affairs syllabus is almost the same for every banking exam in the country. For example, if you are preparing for the PO exam, you will also get prepared for other ones too like SBI, IBPS, etc. You should study the topics below listed in order to pass any banking test.

  • New government programmes like various schemes by the PM 

You must equip yourself with the knowledge of various schemes which have been initiated by the PM. There are schemes like Pradhan Mantri Jan Dhan Yojana, Unnat Bharat Abhiyan, Atal Pension Yojana, Pradhan Mantri Mudra Yojana, Pradhan Mantri Suraksha Bima Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana, etc.  

  • Trending terms or topics 

These are recent terms and acronyms that are used a lot in the world of banking. These are frequently asked in both written exams and interviews. They include KYC, FDI, CASA, RAFA, Crypto, Bitcoin, Blockchain, Money Laundering, Micro ATMs, Deflation, Skimming, Net Asset Value, BASEL Committee, etc.

  • New developments in the world of banking 

You will be asked to explain the terms like GST, Bill Banking Scams, FRDI Bill, BREXIT, IIBs, NBFC, New Developments of SEBI, RBI’s mandatory hedging, Government fund infusion in PSUs, etc.

  • Essential banking terms 

The job aspirants must know about basic banking terms. Some examples are Bank rates, CRR, NPAs, Repo Rates, Reverse Repo Rates, PLR, Retail Banking, NPAs, DEMAT, NOSTRO and VOSTRO accounts, Priority Sector Lending, etc. 

  • Terminologies used for daily operations in banks

This includes topics like ATM, Lockers, types of accounts, Check vs Draft, Demat Accounts, types of checks, etc.

  • RBI’s structure and functions 

You need to read everything about the hierarchy and organization structure of the apex banking body in India.  

  • Money transfer systems in India

This includes gaining knowledge about all the monetary transaction systems in India – RTGS, NEFT, UPI, IMPS and UPI. 

There are other topics that come under this section. For reading about them in detail, you can read the other blogs on our website.   

Preparation Strategy for Clearing Banking Exams in India

The question almost every student asks is how to get prepared. Below are some tips you need to follow to answer most banking and financial awareness questions and secure your dream position in a bank.

  • Create a study schedule

You need to have a detailed study schedule to prepare for the banking exams. It will help you to prepare efficiently for the exam. Your study schedule should also have a revision schedule so that you can get some time to self-assess where your preparation stands before the exams. 

  • Take as many mock exams as you can

It is extremely important that you practice for this section by giving as many mock exams before the real scheduled exam. This will help to improve your speed and accuracy. 

  • Go through previous year’s questions papers

Examine the prior year’s test questions regularly. You can either go through the last five or ten years’ question papers. You might use it to obtain a clearer concept of the format of the questions.

  • Select quality study materials and cover all crucial subjects

You must pick up the best study materials for studying and practicing all the essential topics for the exam. This study material should have notes and lots of practice questions. 

  • Opt for coaching, either online or offline, to understand the latest trends

Taking coaching, either online coaching or offline coaching will help you remain updated for the exams and be well-versed with all the new developments in the banking exams.  

Here are some previously asked questions about banking and financial awareness that will help you to know what to prepare.

Some sample questions on Banking Awareness

What is the smallest loan amount that the RBI’s Liquidity Adjustment Facility will allow?

  1. INR 6 crores 
  2. INR 2 crores
  3. INR 5 crores
  4. Minimum payments are not required.

Solution: Option C

Explanation:

Banks can borrow money from the RBI through the LAF using repurchase agreement methods like repo and reverse repo. Any RBI customer can use this quota, and the maximum loan amount is up to the borrower alone. The lowest bid that can be accepted under the LAF quota is INR 5 crores.

How much money can banks borrow through the Marginal Standing Facility?

  1. 1.0% NDTL
  2. 10% NDTL
  3. 2% NDTL
  4. NOTA

Solution: Option C

Explanation:

In 2011, the Reserve Bank of India set up the MSF to help banks deal with sudden changes in their cash flow. Under the MSF facility, banks can ask the RBI for loans with a higher interest rate than the repo rate. A bank can borrow as little as INR 1 crore, but they can borrow as much as 2% of the NDTL through this channel.

What applies if a bank asks the Reserve Bank of India for long-term financing?

  1. Repo Rate 
  2. Bank Rate 
  3. Liquidity Rate of Facility
  4. All of the above

Solution: Option B

Explanation:

Long-term loans to commercial banks are subject to the Bank Rate, which is regulated by the Reserve Bank of India (RBI). Most short-term loans like these are paid back in 90 days to a year. Most of the time, bank rates are used for long-term loans, while repo rates are used for short-term loans that last less than 90 days.

Which of the following does the Reserve Bank of India (RBI) in India use to measure the quality of monetary policy?

  1. Reducing Repo and Reverse Repo Rates
  2. Moral Solutions  
  3. Both of the above
  4. NOTA

Solution: Option A

Explanation:

The Reserve Bank of India controls the amount of money in the economy by using qualitative measures. This type of measure includes things like margin requirements, credit limits, moral persuasion, directive action, etc. The Repo Rate, the Reverse Repo Rate, the LAF and the MSF are quantitative measures.

The policy rates are set by the Monetary Policy Committee, which is made up of a group of ____ members (MPC). 

  1. Five 
  2. Four
  3. Seven
  4. Six

Solution: Option D

Explanation:

The government set up the MPC to help the RBI make important decisions about policy rates. There are six people on the MPC. Three of them work for the RBI, and the others work for the government. 

How much money do new private banks in India need to get started?

  1. INR 250 crores 
  2. INR 500 crores 
  3. INR 50 crores 
  4. INR 25 crores

Solution: Option B

Explanation:

India’s private sector has put so much money into the country’s private sector banks that they are more numerous than the government as a whole. In India, this kind of bank needs a minimum capital of INR 500 crores, and foreign direct investment (FDI) is limited to 74%.

The National Bank for Agriculture and Rural Development doesn’t care about:

  1. Regional Federal Central Cooperative Institutions
  2. Credit union banks in rural areas are owned and run by the state
  3.  Both A and B 
  4. NABARD keeps a close eye on everyone

Solution: Option D

Explanation:

NABARD’s job is to improve the agricultural sector of the country. The B. Sivaraman Committee suggested it be made, and finally, it was made official in 1982. Its main office is in Mumbai, Maharashtra. Its job is to keep the State Cooperative Banks, District Central Cooperative Banks and Regional Rural Banks in the country in line.

To know more about such questions on banking awareness and set a robust strategy for banking exams, visit us today! Veranda Learning is always there for you! 

SSC MTS post, 34 out of 46 successful candidates shortlisted for appointment are from Veranda RACE Institute. More than 2281 Race students have cleared the recent IBPS PO prelims, 2856 + cleared TNPSC Group 2 prelims and  3050 + Students cleared SBI Clerk Prelims we are awaiting a good result in the upcoming  results for TNPSC group 4 exams too in 2023.

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