IBPS PO (Probationary Officer) General and Banking Awareness Syllabus

General and Banking Awareness syllabus — full chapter and topic list

Expand any chapter to see its topics and sub-topics. This is the whole examinable outline for General and Banking Awareness in IBPS PO (Probationary Officer), not a summary of it.

1. 1

   Banking and Financial Awareness

   3 topics

   • Indian Banking System
     • Types of banks (commercial, cooperative, RRBs, SFBs, payment banks)
     • Nationalisation and banking history
     • Priority sector lending
   • Banking Terminology and Products
     • NEFT, RTGS, IMPS, UPI
     • CASA, NPA, CRAR and capital adequacy
     • Negotiable instruments and types of accounts
   • Regulatory Bodies
     • RBI functions and monetary policy
     • SEBI, IRDAI, PFRDA, NABARD, SIDBI
     • BIS, Basel norms
2. 2

   Monetary Policy and Financial Markets

   3 topics

   • Monetary Policy Instruments
     • Repo, reverse repo, CRR, SLR
     • MSF, bank rate, OMO
   • Financial Markets
     • Money market and capital market instruments
     • Primary and secondary markets
   • Government Schemes
     • Financial inclusion schemes (PMJDY, PMSBY, PMJJBY, APY)
     • Mudra, Stand-Up India, credit guarantee schemes
3. 3

   Current Affairs

   3 topics

   • National and International Events
     • Government policies and budget highlights
     • Summits, agreements and MoUs
   • Awards, Sports and Appointments
     • National and international awards
     • Sports events and tournaments
     • Important appointments and resignations
   • Reports, Indices and Obituaries
     • Global indices and rankings
     • Books, authors and obituaries
4. 4

   Static General Knowledge

   3 topics

   • Indian Geography and Polity
     • Important dams, rivers and national parks
     • Constitutional bodies and articles (basics)
   • Economy and Institutions
     • Headquarters of banks and organisations
     • Currencies and capitals
   • Days, Schemes and Miscellaneous
     • Important national and international days
     • Stock exchanges and abbreviations

General and Banking Awareness flashcards for IBPS PO (Probationary Officer)

22 of 51 cards from the General and Banking Awareness deck — real questions with worked answers.

1. In the Indian banking system, what is the difference between Scheduled and Non-Scheduled banks?

   Scheduled banks are listed in the Second Schedule of the RBI Act, 1934 (must have paid-up capital and reserves of at least Rs 5 lakh and satisfy RBI that their affairs are not conducted to the detriment of depositors); they get RBI loan facilities and CRR benefits. Non-Scheduled banks are not in the Second Schedule and lack these privileges.

2. What is the difference between a Public Sector Bank, a Private Sector Bank, and a Foreign Bank in India?

   Public Sector Bank: majority stake (over 50%) held by the Government of India (e.g., SBI, PNB). Private Sector Bank: majority stake held by private shareholders (e.g., HDFC, ICICI). Foreign Bank: incorporated abroad but operating branches in India (e.g., Citibank, HSBC).

3. What are the four types of differentiated banks introduced in India, and give the defining feature of Payments Banks and Small Finance Banks.

   Differentiated/niche banks: Payments Banks, Small Finance Banks, Local Area Banks, and Regional Rural Banks. Payments Banks can accept deposits up to Rs 2 lakh per customer but cannot lend or issue credit cards. Small Finance Banks focus on lending to small/unserved segments and must give 75% of credit to priority sector.

4. When was the State Bank of India established and from which earlier bank was it created?

   SBI was established on 1 July 1955 by nationalising and renaming the Imperial Bank of India (itself formed in 1921 by merging the three Presidency Banks of Bengal, Bombay and Madras).

5. What is a Non-Banking Financial Company (NBFC) and how does it differ from a bank?

   An NBFC is a company registered under the Companies Act that provides financial services (loans, asset finance, investments) but, unlike a bank, cannot accept demand deposits, is not part of the payment and settlement system, and cannot issue cheques drawn on itself; depositors do not get DICGC deposit insurance.

6. Define CASA ratio and explain why a high CASA ratio benefits a bank.

   CASA = Current Account and Savings Account deposits as a proportion of total deposits. A high CASA ratio is favourable because these are low-cost/no-cost funds, reducing the bank's cost of funds and improving its net interest margin.

7. What is the difference between NEFT, RTGS and IMPS payment systems?

   NEFT: deferred net settlement, now 24x7, no minimum/maximum limit set by RBI. RTGS: real-time gross settlement for high-value transfers, minimum Rs 2 lakh, 24x7. IMPS: instant 24x7 interbank transfer via mobile, run by NPCI, typically up to Rs 5 lakh.

8. What does NPA stand for, and when is a loan classified as an NPA?

   NPA = Non-Performing Asset. A loan/advance becomes an NPA when interest or principal instalment remains overdue for more than 90 days. NPAs are sub-classified as Sub-standard, Doubtful and Loss assets.

9. Distinguish between a Bank Rate and the Repo Rate.

   Bank Rate is the rate at which RBI lends long-term funds to banks without collateral/securities (no repurchase agreement). Repo Rate is the rate at which RBI lends short-term funds to banks against government securities under a repurchase agreement. Repo is the key policy rate.

10. What is the Marginal Standing Facility (MSF) and how does its rate relate to the repo rate?

    MSF is a window allowing banks to borrow overnight funds from RBI against their SLR securities (up to a permitted limit) in emergencies. The MSF rate is set above the repo rate (usually repo + 25 bps), forming the upper bound of the LAF corridor.

11. Define CRR and SLR and state who holds these reserves.

    CRR (Cash Reserve Ratio) is the percentage of a bank's Net Demand and Time Liabilities (NDTL) that must be kept as cash with the RBI, earning no interest. SLR (Statutory Liquidity Ratio) is the percentage of NDTL that a bank must maintain in liquid assets such as cash, gold or approved government securities, held by the bank itself.

12. What is the Liquidity Adjustment Facility (LAF) and what defines its corridor?

    LAF is RBI's tool to manage day-to-day liquidity through repo (injection) and reverse repo (absorption) operations. The LAF corridor's floor is the reverse repo rate (now SDF) and its ceiling is the MSF rate, with the repo rate in the middle.

13. Which body sets India's monetary policy and how is it composed?

    The Monetary Policy Committee (MPC), constituted under the RBI Act. It has 6 members—3 from RBI (including the Governor as chairperson) and 3 nominated by the central government. Decisions are by majority; the Governor has a casting vote in case of a tie.

14. What is the inflation-targeting mandate given to the RBI/MPC?

    The RBI is mandated to maintain Consumer Price Index (CPI) inflation at 4%, with a tolerance band of +/- 2% (i.e., between 2% and 6%). This flexible inflation-targeting framework was adopted in 2016.

15. Who is the regulator of the securities market in India and when was it given statutory status?

    SEBI (Securities and Exchange Board of India), headquartered in Mumbai, regulates the securities market. It was established in 1988 and given statutory powers through the SEBI Act, 1992.

16. Which body regulates the insurance sector in India and where is it headquartered?

    IRDAI (Insurance Regulatory and Development Authority of India), established under the IRDA Act 1999, headquartered in Hyderabad.

17. Which body regulates pension funds in India?

    PFRDA (Pension Fund Regulatory and Development Authority), which regulates the National Pension System (NPS); it became statutory under the PFRDA Act, 2013, and is headquartered in New Delhi.

18. What is NABARD and what is its primary role?

    NABARD (National Bank for Agriculture and Rural Development), established in 1982 and headquartered in Mumbai, is the apex development bank for agriculture and rural development; it refinances rural credit institutions and supervises cooperative banks and Regional Rural Banks.

19. What is the difference between the money market and the capital market?

    The money market deals in short-term funds (maturity up to 1 year)—instruments like Treasury Bills, Commercial Paper, Certificates of Deposit and Call Money. The capital market deals in long-term funds (over 1 year)—instruments like shares, bonds and debentures, traded on stock exchanges.

20. Differentiate between Commercial Paper (CP) and a Certificate of Deposit (CD).

    Commercial Paper is an unsecured short-term promissory note issued by highly rated corporates/financial institutions to raise working capital. Certificate of Deposit is a negotiable short-term instrument issued by banks/financial institutions against deposits. Both are money-market instruments issued at a discount to face value.

21. What is the difference between Treasury Bills (T-Bills) and Government Dated Securities (G-Secs)?

    T-Bills are short-term (91, 182 or 364 days) zero-coupon instruments issued at a discount by the government to meet short-term needs. G-Secs (dated securities) are long-term instruments (over 1 year) carrying a coupon (interest), issued for long-term borrowing.

22. What does PMJDY stand for and what is its core objective?

    Pradhan Mantri Jan Dhan Yojana, launched in August 2014. Its objective is universal financial inclusion by providing every household a basic (zero-balance) bank account with a RuPay debit card, accident insurance cover and overdraft facility.

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