Sunday, April 15, 2018

How to prepare Finance & Management Section for RBI Grade B Exam 2018

What topics do I need to complete in the Finance & Management section of RBI Grade-B Exam 2018. This is the Question everyone ask when they start preparing for RBI Grade B Phase -2 Exam. The Finance & Management (F&M) section of RBI Grade B Exam is regarded as the toughest section in Phase II. But if you prepare it smartly then you can easily manage to score very good marks in less time.

Phase-II: Three Papers - 300 marks 
(a) Paper-I – online- English-( writing skills)- 1½ hours - 100 marks 
(b) Paper-II – Economic and Social Issues – 1½ hours – 100 marks 
(c) Paper-III - Optional Paper (Finance & Management/ Economics/ Statistics) – 1½ hours - 100 marks

In Phase - 2 Exam there will be three Paper consisting 100 Marks Each and the third Paper is Finance and Management. In F&M paper 60% Questions come from Finance Section and rest from Management.

Some General Analysis of Paper Based on Previous Year Paper :

  1. There will be Total 65 Questions (30 - One Marks and 35 - Two Marks)
  2. One Marks Questions are Direct but the Two Marks questions are factual and Tricky.
  3. If you divide the Whole Finance & Management Paper, the Questions will be categorize in mainly four category, Three Finance Category I have mentioned below and fourth will be Questions from Management Section.
  4. Go through Previous year paper and analyze them properly before starting your preparation.
  5. As the Syllabus recommended by RBI is huge so I would suggest don't try to cover complete book only focus on Particular Terms or Topics.

Questions in Finance Section is Divided into Three Category 

  1. Basic Understanding of Syllabus
  2. Related to Finance News and 
  3. Finance Numerical

What to Study in Finance Syllabus

Financial System:
  • Regulators of Banks & Financial Institutions
  • Functions of RBI, conduct of monetary policy, Banking system of India, Financial Institutions (SIDBI, NABARD, EXIM, NHB)
Financial Markets:
  • Primary & Secondary markets (Forex, Money, Bond, Equity), Functions, Instruments, Recent developments.
General Topics:
  • Risk Management in Banking sector
  • Basics of Derivatives: Forward, Futures and Swap
  • Changing landscape of Banking sector
  • Recent developments in Financial sector, Portfolio investment, Public sector reforms, Disinvestments
  • Financial Inclusion – Use of technology
  • Alternate source of Finance, private and social cost-benefit, Public-Private partnership
  • Corporate Governance in Banking sector, role of e-governance in addressing the issues of corruption & inefficiency in the government sector
  • The Union budget – Direct and indirect taxes; Non-tax sources of Revenue, GST, 13th Finance Commission and GST, Finance commission, Fiscal policy, Fiscal responsibility and budget management act
  • Inflation: Definition, trends, estimates, consequences, and remedies: WPI, CPI – components of trends
What to Study in Finance Numerical (15-20 Marks)

What to Study in Management Syllabus
  • Nature & Scope
  • Processes (Planning, Organizing, Staffing, Directing, Controlling)
  • Role of a Manager in an organization
  • Tasks of a leader
  • Styles & theories
  • Successful vs Effective leader
  • Human Resource Development:
  • Concepts & goals of HRD
  • Performance appraisal – Potential appraisal & development – Feedback & Performance counselling – Career planning – Training & development – Rewards – Employee welfare.
  • Theories
  • Morale & Incentive
  • How managers motivate
  • Morale concept
  • Factors influencing morale
  • Role of incentives in building up morale
  • Steps in communication process
  • Communication channels
  • Communication types : Oral vs Written; Verbal vs Non-verbal; Upward, downward & lateral
  • Role of IT
  • Barriers to communication
Corporate Governance:
  • Mechanisms
  • Factors affecting corporate governance
Books & Study Materials to Follow

  • Financial Management by Prasanna Chandra
  • Financial System in India by Bharti Pathak 
  • Financial system: FAQ sections of SIDBI, NABARD, EXIM etc., websites, RBI website FAQ, Current affairs capsules
  • Financial markets & General topics: Google, updated documents
  • NCERT Business Studies (12th standard)
  • Organizational Behavior by S.P. Robbins
  • Principles of Management by I.M. Prasad
  • IGNOU Management Notes

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What is the rule of 72 and 69 in Finance - RBI GRADE B Finance Paper

Rule of 72 , 69, 114 and 144 in Finance to calculate the Double, triple and Quadruple of Amount Invested.
In personal finance, if you divide the number 72 by the rate of interest, you get to know the number of years it will take for you to double the money..
For Example : if the rate of interest is 9%, simply divide the number 72 by 9% and the answer is 8. Thus it will take 8 years to double your money if you invest at 9% p.a. rate of interest.

(72 / 9)  = 8 years
We can use this rule in reverse to know the rate of interest needed to double your money to achieve your set goal.
For Example :  If you have 250,000 today and you need 500,000 in 5 years. Just divide the number 72 by 5, the answer is 14.41%. Thus you need a type of investment avenue, where you earn at least 14.41% p.a. as rate of interest/returns to double your investment amount in 5 years.
This 'Rule 72' helps you to understand about inflation also. It helps you to calculate the amount of time it will take for inflation to make the real value of money half. Let's say present inflation is 5.5%. When you divide 72 by 5.5% the answer is 13.09 years. That is to say, if you have 100,000 in your kitty today, it would take around 13.09 years for the value of the money to be halved.

The Rule of 69 is used to estimate the amount of time it will take for an investment to double, assuming continuously compounded interest.
The calculation is to divide 69 by the rate of return for an investment and then add 0.35 to the result
For example, an investor finds that he can earn a 20% return on a property investment, and wants to know how long it will take to double his money. The calculation is:
  (69 / 20) + 0.35 = 3.8 years

COMPOUNDING RULE 114 - To Estimate How Long it takes to triple your Money or 

Investment, divide 114 by your expected interest rate or rate of return.

(114 ÷ 8) = 14.25 years

Similarly, Rule of 144 is used to check Quadruple of Money.

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Saturday, April 14, 2018

How to Prepare Bank PO Exam in 2018 - Preparation Material for SBI PO | IBPS PO

Here we are Providing you the answer of What is good preparation material for the SBI & IBPS Bank PO Exam 2018 ? What are the Books and Study Material that needs to be Followed to crack this exam in 2018. 

IBPS PO / SBI PO Prelim Exam Pattern

Sr. No.SubjectsNo. of questionsMarksTime
1Quantitative Aptitude3535

1 hour total
2English Language3030
3Reasoning Ability3535
IBPS PO / SBI PO Mains Exam Pattern

Sr. No.Name of testNo. of QuestionsMax. MarksMedium of ExaminationTime Allotted
1Reasoning & Computer Aptitude4560English & Hindi60 minutes
2English Language3540English only40 minutes
3Data Analysis and Interpretation3560English & Hindi45 minutes
4General, Economy/Banking Awareness4040English & Hindi35 minutes
Total155200180 minutes
English Language (Letter Writing & Essay)225English30 minutes

Some Important Tips Related to IBPS & SBI PO Exam Preparation

Observing the Drastic Change in the Exam Pattern and Types of Questions being asked these days in Banking Exam specially Mains Exam of all the PO Exam either it’s SBI PO or IBPS PO. It is now required that you will have to change the way you used to prepare this exam earlier. If you have given any PO level exam in recent time then you must have Noticed three things - Sharp Increase in Cut off, Change in Exam Pattern and with change came High Level of New Pattern Questions which were generally used to asked in CAT Exam 2–3 Years before.
So here I am recommending you some Books and How to Prepare from that Book for Upcoming Bank PO Exam.
  1. First thing about IBPS PO or SBI PO Exam Preparation, I would like to recommend you to prepare for Mains Exam. Here most of the Aspirants commit Mistake and focus on Prelim exam but they don't understand that the real war is in mains exam. 
  2. Get books like Quantum CAT by Sarvesh Verma for Quantitative Aptitude, SP bakshi and Plinth to Paramount for English Section. MK Pandey can be referred for reasoning but I don’t feel it as sufficient. So I would suggest attempt oliveboard questions and also bankersadda quiz section for high level Reasoning section.
  3. Learn Logical Reasoning, lots of people ignore this and loose 10-12 easy marks in mains exam. In logical questions are based on Statement - Course of Action, Statement - Arguments etc.
  4. Any Exam Preparation consist two Part - First is Learning Basic and Clearing your Fundamentals and Second is Practicing lots of Questions. In the Starting try to solve each and every question from Savesh verma or in Reasoning section without any time limit. You should be able to solve CAT level questions too if time limit is removed.
  5. Once you are comfortable solving questions of all the difficulty levels in the book, go for mock tests. This is the most important stage. By Practicing Chapter wise you have learnt concept and Now your knowledge will be tested for implementation through mock test.
  6. Give Mock test seriously and consider every mock as your final exam. In the mock test analysis is most important part, if you are able to analyze your test properly then definitely you will improve your marks in coming paper.
  7. Also Mock tests are for Improvement, In the starting if you are not getting good marks then don’t get demotivated keep Practicing you will reach your destination.
  8. Make a Proper study plan for Preparation and divide your preparation in two part first before notification and second after notification. In the first part your focus should be learn everything and mainly mains level questions.
  9. Once notification comes switch your focus to prelim and start attempting more and more mock and doing lots of chapter wise preparation but always provide 2-3 hours to you daily activities like reading newspaper, vocabulary and current affairs. Don't try to make current affairs as past affairs it will be a burden.
  10. For Preparation of General Awareness you need to Prepare all three section - Banking , Static and Current Part. Try to cover Banking and Static part in the starting of your Preparation and Make a proper notes for Revision.
  11. Never assume which questions will be asked in the exam or which type of difficulty level can be asked. They can change the pattern as per their convenience and requirement. Your job is to prepare for the worst case scenario.
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RBI GRADE B Previous 10 Years Paper of Phase - 1 & 2 Exam

Here we are providing you RBI Grade B Officer Previous Year Question Papers in PDF format. Download the Question Papers and kindly share it with your friends. We have collected these questions from Internet for your help.
RBI GRADE B Sample Paper -Reserve Bank of India
  1. RBI GRADE B : 2016 Paper
  2. Phase - 1 2015 (GA & English)
  3. Phase - 1 2015 (Math & Reasoning)
  4. Phase - 1 : 2015 (Answer Key)
  5. Phase - 2 : English 2012
  6. Phase - 2 : FM 2012
  7. Phase - 2 : ESI 2012
  8. Phase -1 : 2014
  9. Phase - 2 : 2004
  10. Phase - 2 : 2007
  11. Phase - 2 : 2008
  12. Phase - 2 : 2009
  13. RBI GRADE B : F & M 2010
  14. RBI GRADE B : 2013
Hope this Help you in your Preparation.

I also provide online courses on unacademy as a verified Educator for RBI GRADE B. Follow me there Brajesh Mohan - Unacademy

You can Follow & Connect with me on Below Platform for Your Query regarding banking Exam Preparation.
Unacademy → Brajesh Mohan - Unacademy
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Saturday, November 25, 2017

Banking Awareness : Small Finance Bank & Payment Bank

Small Finance Banks in the Private Sector
i) Objectives:
The objectives of setting up of small finance banks will be to further financial inclusion by (a) provision of savings vehicles, and (ii) supply of credit to small business units; small and marginal farmers; micro and small industries; and other unorganised sector entities, through high technology-low cost operations.
ii) Eligible promoters: Resident individuals/professionals with 10 years of experience in banking and finance; and companies and societies owned and controlled by residents will be eligible to set up small finance banks. Existing Non-Banking Finance Companies (NBFCs), Micro Finance Institutions (MFIs), and Local Area Banks (LABs) that are owned and controlled by residents can also opt for conversion into small finance banks. Promoter/promoter groups should be ‘fit and proper’ with a sound track record of professional experience or of running their businesses for at least a period of five years in order to be eligible to promote small finance banks.
iii) Scope of activities :
  1. The small finance bank shall primarily undertake basic banking activities of acceptance of deposits and lending to unserved and underserved sections including small business units, small and marginal farmers, micro and small industries and unorganised sector entities.
  2. There will not be any restriction in the area of operations of small finance banks.
iv) Capital requirement: The minimum paid-up equity capital for small finance banks shall be Rs. 100 crore.
v) Promoter's contribution: The promoter's minimum initial contribution to the paid-up equity capital of such small finance bank shall at least be 40 per cent and gradually brought down to 26 per cent within 12 years from the date of commencement of business of the bank.
vi) Foreign shareholding: The foreign shareholding in the small finance bank would be as per the Foreign Direct Investment (FDI) policy for private sector banks as amended from time to time.
vii) Prudential norms :
  1. The small finance bank will be subject to all prudential norms and regulations of RBI as applicable to existing commercial banks including requirement of maintenance of Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR). No forbearance would be provided for complying with the statutory provisions.
  2. The small finance banks will be required to extend 75 per cent of its Adjusted Net Bank Credit (ANBC) to the sectors eligible for classification as priority sector lending (PSL) by the Reserve Bank.
  3. At least 50 per cent of its loan portfolio should constitute loans and advances of upto Rs. 25 lakh.

Watch this Complete Article in Video Form :- All About Payment Bank,Small Finance Bank, Tagline, Headquarter, Latest News 


Payments Banks in the Private Sector
i) Objectives:
The objectives of setting up of payments banks will be to further financial inclusion by providing (i) small savings accounts and (ii) payments/remittance services to migrant labour workforce, low income households, small businesses, other unorganised sector entities and other users.
ii) Eligible promoters :
  1. Existing non-bank Pre-paid Payment Instrument (PPI) issuers; and other entities such as individuals / professionals; Non-Banking Finance Companies (NBFCs), corporate Business Correspondents(BCs), mobile telephone companies, super-market chains, companies, real sector cooperatives; that are owned and controlled by residents; and public sector entities may apply to set up payments banks.
  2. A promoter/promoter group can have a joint venture with an existing scheduled commercial bank to set up a payments bank. However, scheduled commercial bank can take equity stake in a payments bank to the extent permitted under Section 19 (2) of the Banking Regulation Act, 1949.
  3. Promoter/promoter groups should be ‘fit and proper’ with a sound track record of professional experience or running their businesses for at least a period of five years in order to be eligible to promote payments banks.
iii) Scope of activities :
  1. Acceptance of demand deposits. Payments bank will initially be restricted to holding a maximum balance of Rs. 100,000 per individual customer.
  2. Issuance of ATM/debit cards. Payments banks, however, cannot issue credit cards.
  3. Payments and remittance services through various channels.
  4. BC of another bank, subject to the Reserve Bank guidelines on BCs.
  5. Distribution of non-risk sharing simple financial products like mutual fund units and insurance products, etc.
iv) Deployment of funds :
  1. The payments bank cannot undertake lending activities.
  2. Apart from amounts maintained as Cash Reserve Ratio (CRR) with the Reserve Bank on its outside demand and time liabilities, it will be required to invest minimum 75 per cent of its "demand deposit balances" in Statutory Liquidity Ratio(SLR) eligible Government securities/treasury bills with maturity up to one year and hold maximum 25 per cent in current and time/fixed deposits with other scheduled commercial banks for operational purposes and liquidity management.
v) Capital requirement :
The minimum paid-up equity capital for payments banks shall be Rs. 100 crore.
  1. The payments bank should have a leverage ratio of not less than 3 per cent, i.e., its outside liabilities should not exceed 33.33 times its net worth (paid-up capital and reserves).
vi) Promoter's contribution: The promoter's minimum initial contribution to the paid-up equity capital of such payments bank shall at least be 40 per cent for the first five years from the commencement of its business.
vii) Foreign shareholding: The foreign shareholding in the payments bank would be as per the Foreign Direct Investment (FDI) policy for private sector banks as amended from time to time.

Watch Other Videos On Banking Awareness In this series 

  1. Banking Awareness Module 1 : What is Marginal Cost Based Lending Rate (MCLR) | MCLR Vs Base Rate
  2. Banking Awareness Module 2 : About Insolvency and Bankruptcy Board Of India (IBBI)
  3. Banking Awareness Module 3 : Banking Related Acts and Important Sections Asked In Exam
  4. Banking Awareness Module 4 : About Small Finance Bank & Payment Bank
  5. Banking Awareness Module 5 : About Priority Sector Lending and Important Questions