IBPS PO (Probationary Officer) General and Banking Awareness Syllabus

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.

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.

Name the three social security/insurance schemes launched in 2015 and the cover each provides.

PMJJBY (Pradhan Mantri Jeevan Jyoti Bima Yojana): life cover of Rs 2 lakh (age 18-50). PMSBY (Pradhan Mantri Suraksha Bima Yojana): accidental death/disability cover of Rs 2 lakh (age 18-70). APY (Atal Pension Yojana): guaranteed pension of Rs 1,000-5,000 per month after age 60.

What is the Pradhan Mantri Mudra Yojana (PMMY) and what are its three loan categories?

PMMY (launched 2015) provides collateral-free micro-credit up to Rs 10 lakh to non-corporate, non-farm small/micro enterprises through MUDRA. Categories: Shishu (up to Rs 50,000), Kishore (Rs 50,000 to Rs 5 lakh) and Tarun (Rs 5 lakh to Rs 10 lakh).

What is the Kisan Credit Card (KCC) scheme designed to provide?

The KCC scheme, introduced in 1998, provides farmers with timely and adequate short-term credit for crop cultivation and allied agricultural needs, plus a consumption component, through a simple revolving credit/overdraft facility.

What is the Priority Sector Lending (PSL) target for domestic commercial banks, and what is the agriculture sub-target?

Domestic scheduled commercial banks must lend 40% of their Adjusted Net Bank Credit (ANBC) to priority sectors. Within this, agriculture has an 18% sub-target and weaker sections a 12% sub-target.

What is the difference between Fiscal Policy and Monetary Policy?

Fiscal Policy is the use of government taxation and spending to influence the economy, managed by the Ministry of Finance and presented through the Union Budget. Monetary Policy is the management of money supply and interest rates to control inflation and growth, conducted by the RBI/MPC.

Define Fiscal Deficit and how it differs from Revenue Deficit.

Fiscal Deficit = Total Expenditure - Total Receipts (excluding borrowings); it shows total government borrowing requirement. Revenue Deficit = Revenue Expenditure - Revenue Receipts; it indicates the shortfall in meeting day-to-day/recurring expenses.

What is the full form of GST and how is its revenue shared in India?

GST = Goods and Services Tax, a unified indirect tax effective 1 July 2017. It is dual: CGST (collected by the Centre) and SGST (collected by States) on intra-state supplies, and IGST on inter-state supplies. It is governed by the GST Council chaired by the Union Finance Minister.

What is repo-linked lending and what is the External Benchmark Lending Rate (EBLR)?

Since October 2019, banks must link floating-rate retail and MSME loans to an external benchmark (commonly the RBI repo rate). EBLR is the resulting lending rate, which adjusts automatically with the benchmark, improving transmission of policy rate changes to borrowers.

What is the DICGC and what is the current deposit insurance limit in India?

DICGC (Deposit Insurance and Credit Guarantee Corporation), a wholly owned RBI subsidiary, insures bank deposits. Each depositor is insured up to Rs 5 lakh per bank (covering principal plus interest) since the limit was raised in 2020.

What is the difference between a Bull market and a Bear market?

A Bull market is one where prices are rising or expected to rise, reflecting investor optimism. A Bear market is one where prices are falling or expected to fall, reflecting pessimism. The terms also describe optimistic (bull) and pessimistic (bear) investors.

What is the difference between the Primary Market and the Secondary Market?

The Primary Market is where securities are issued for the first time (e.g., via an IPO), with funds going directly to the issuing company. The Secondary Market (stock exchange) is where already-issued securities are traded among investors, providing liquidity but no funds to the issuer.

What is an IPO and what is the difference between an IPO and an FPO?

An IPO (Initial Public Offering) is the first sale of shares by a company to the public. An FPO (Follow-on Public Offer) is a subsequent issue of additional shares by a company that is already listed on a stock exchange.

What does CRAR (Capital to Risk-weighted Assets Ratio) measure, and what is the Basel III minimum for Indian banks?

CRAR (or Capital Adequacy Ratio) measures a bank's capital as a percentage of its risk-weighted assets, indicating its ability to absorb losses. Under Basel III, RBI requires Indian banks to maintain a minimum CRAR of 9% (plus a capital conservation buffer of 2.5%).

Who is the current Governor of the Reserve Bank of India and what number Governor is he?

Sanjay Malhotra, who took charge on 11 December 2024 as the 26th Governor of the RBI, succeeding Shaktikanta Das.

What is the difference between a Repo transaction and a Reverse Repo transaction from the bank's perspective?

In a Repo, the bank borrows funds from the RBI by selling securities with an agreement to repurchase them—it pays the repo rate. In a Reverse Repo, the bank lends surplus funds to the RBI by buying securities—it earns the reverse repo rate. Repo injects liquidity; reverse repo absorbs it.

What is the Insolvency and Bankruptcy Code (IBC), 2016, and which tribunal adjudicates corporate insolvency?

The IBC, 2016, is a unified law for the time-bound resolution of insolvency of companies and individuals to maximise asset value. Corporate insolvency cases are adjudicated by the NCLT (National Company Law Tribunal), with appeals to the NCLAT.

What does UPI stand for, who operates it, and what is its key feature?

UPI (Unified Payments Interface) is operated by NPCI (National Payments Corporation of India). It enables instant, 24x7 interbank money transfer through a mobile app using a Virtual Payment Address (UPI ID), linking multiple bank accounts to a single application.

What is the Standing Deposit Facility (SDF) introduced by the RBI in April 2022?

The SDF is a liquidity absorption tool that lets banks park surplus funds with the RBI without the RBI providing collateral (unlike reverse repo). It replaced the fixed-rate reverse repo as the floor of the LAF corridor; its rate is set 25 bps below the repo rate.

What is the difference between Direct Tax and Indirect Tax with examples?

Direct Tax is levied directly on a person's income or wealth and its burden cannot be shifted (e.g., Income Tax, Corporate Tax). Indirect Tax is levied on goods and services and its burden can be passed on to the final consumer (e.g., GST, Customs Duty).

Name India's national income accounting bodies: who computes GDP and which ministry releases it?

GDP and national income estimates are computed by the National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI).

What is the difference between GDP and GNP?

GDP (Gross Domestic Product) is the total value of goods and services produced within a country's borders. GNP (Gross National Product) = GDP + net factor income from abroad (income earned by residents abroad minus income earned by foreigners domestically).

Which index does the RBI target for inflation, and which ministry/body releases the WPI?

The RBI targets retail inflation measured by the Consumer Price Index (CPI), released by the NSO/MoSPI. The Wholesale Price Index (WPI) is released by the Office of the Economic Adviser, Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry.

What is the Human Development Index (HDI), who publishes it, and what three dimensions does it measure?

The HDI is published annually by the UNDP (United Nations Development Programme) in its Human Development Report. It measures three dimensions: a long and healthy life (life expectancy), knowledge (education), and a decent standard of living (Gross National Income per capita).

Where is the headquarters of the IMF and the World Bank, and what is the primary role of each?

Both are headquartered in Washington, D.C., USA. The IMF (International Monetary Fund) ensures global monetary cooperation and provides short-term financial assistance to address balance-of-payments problems. The World Bank provides long-term loans for development and poverty reduction.

What is the difference between a Repo Rate cut and a CRR cut in terms of their effect on liquidity?

A Repo Rate cut lowers the cost of borrowing from the RBI, encouraging banks to borrow and lend more cheaply. A CRR cut reduces the cash banks must park with the RBI, directly releasing more funds into the banking system. Both increase liquidity, but CRR acts on the quantum of lendable funds while repo acts on the cost of funds.

What is 'Know Your Customer' (KYC) and why is it mandatory for banks?

KYC is the process by which banks verify the identity and address of customers using approved documents before opening accounts. It is mandated under RBI/PMLA guidelines to prevent money laundering, terror financing, fraud and identity theft, and must be periodically updated.

What is the difference between a Cheque and a Demand Draft?

A Cheque is an order by an account holder directing the bank to pay a specified sum, and it may bounce if funds are insufficient. A Demand Draft (DD) is a prepaid instrument issued by a bank after collecting the amount in advance, so it is guaranteed and cannot bounce.

What is the World Bank's 'Ease of Doing Business' successor index, and what does the Global Hunger Index (GHI) measure?

The Ease of Doing Business report was discontinued and is being replaced by the B-READY (Business Ready) report. The Global Hunger Index (published by Concern Worldwide and Welthungerhilfe) measures hunger using undernourishment, child stunting, child wasting and child mortality.

What is meant by the 'Lender of Last Resort' function of the RBI?

As Lender of Last Resort, the RBI provides emergency credit to banks facing a liquidity crisis when they cannot obtain funds elsewhere. This function maintains financial stability and public confidence and helps prevent bank runs and systemic collapse.