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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