IBPS SO General Awareness with Special Reference to Banking Syllabus

General Awareness with Special Reference to Banking syllabus — full chapter and topic list

Expand any chapter to see its topics and sub-topics. This is the whole examinable outline for General Awareness with Special Reference to Banking in IBPS SO, not a summary of it.

1. 1

   Banking and Financial Awareness

   5 topics

   • RBI: Functions, Monetary Policy and Tools
     • Repo, reverse repo, CRR, SLR, MSF
     • Bank Rate and policy corridor (LAF)
   • Banking Structure and Types of Banks
     • Scheduled / non-scheduled, SFBs, payment banks
     • Cooperative banks and RRBs
   • Negotiable Instruments and Banking Products
   • NPA, Basel Norms and Capital Adequacy
   • Priority Sector Lending and Financial Inclusion
2. 2

   Financial Markets and Regulators

   4 topics

   • Regulatory Bodies (SEBI, IRDAI, PFRDA, NABARD, SIDBI)
   • Money Market and Capital Market Instruments
   • Payment Systems (NEFT, RTGS, IMPS, UPI, NACH)
   • Mutual Funds, Insurance and Pension Schemes
3. 3

   Current Affairs

   4 topics

   • National and International Banking / Economic News
   • Government Schemes and Budget Highlights
   • Appointments, Awards, Summits and Sports
   • Important Days, Books and Obituaries
4. 4

   Static and Economic Awareness

   4 topics

   • Indian Economy and National Income Concepts
   • International Financial Institutions (IMF, World Bank, ADB, BRICS)
   • Headquarters, Taglines and Banking Abbreviations
   • Census, Schemes and Static GK

General Awareness with Special Reference to Banking flashcards for IBPS SO

23 of 50 cards from the General Awareness with Special Reference to Banking deck — real questions with worked answers.

1. Who acts as the lender of last resort and the banker to the Government of India?

   The Reserve Bank of India (RBI). It also issues currency, manages monetary policy, regulates banks, and is the banker to banks.

2. In RBI monetary policy, what is the Repo Rate?

   The rate at which the RBI lends short-term funds to commercial banks against government securities. Raising it makes borrowing costlier and curbs inflation.

3. What is the difference between Repo Rate and Reverse Repo Rate?

   Repo Rate is the rate RBI lends to banks; Reverse Repo Rate is the rate RBI pays banks for parking their surplus funds with it. Reverse Repo is always lower than Repo.

4. What are CRR and SLR?

   CRR (Cash Reserve Ratio) is the percentage of deposits banks must keep as cash with the RBI (no interest). SLR (Statutory Liquidity Ratio) is the percentage banks must maintain in liquid assets like cash, gold, and approved securities.

5. Which RBI body decides the policy repo rate, and how many members does it have?

   The Monetary Policy Committee (MPC), a 6-member body (3 from RBI including the Governor, and 3 appointed by the Government). Decisions are by majority; the Governor has a casting vote.

6. What is the Marginal Standing Facility (MSF)?

   An RBI window through which banks can borrow overnight emergency funds against SLR securities (dipping into the SLR), at a rate typically 0.25% above the repo rate.

7. What is the Bank Rate?

   The long-term rate at which the RBI lends to banks without collateral; it acts as the penal rate and is usually aligned with the MSF rate.

8. How are banks classified into 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). Non-scheduled banks are not listed in that schedule.

9. What are Small Finance Banks and Payments Banks?

   Small Finance Banks serve small/underserved customers and can lend (e.g., AU SFB). Payments Banks (e.g., Paytm Payments Bank) can accept deposits up to Rs 2 lakh per customer and offer payments, but cannot lend or issue credit cards.

10. What are the three main types of negotiable instruments under the Negotiable Instruments Act, 1881?

    Promissory Note, Bill of Exchange, and Cheque.

11. What is the difference between a bearer cheque and a crossed cheque?

    A bearer cheque can be encashed by whoever holds/presents it at the counter. A crossed cheque (two parallel lines) cannot be cashed over the counter and must be deposited into a bank account.

12. What is a NPA (Non-Performing Asset) and when is a loan classified as one?

    An NPA is a loan/advance on which principal or interest remains overdue for more than 90 days.

13. What are the three categories of NPAs based on duration?

    Sub-standard (NPA up to 12 months), Doubtful (NPA for more than 12 months), and Loss assets (uncollectible, identified but not yet written off).

14. What is the Capital Adequacy Ratio (CAR) / CRAR and how is it calculated?

    CAR = (Tier 1 Capital + Tier 2 Capital) / Risk-Weighted Assets, expressed as a percentage. It measures a bank's capital against its risk exposure.

15. Under Basel III norms, what is the minimum CRAR required for Indian banks (including buffers)?

    9% minimum CRAR mandated by RBI, plus a Capital Conservation Buffer of 2.5%, taking the effective requirement to 11.5%.

16. What is the difference between Tier 1 and Tier 2 capital?

    Tier 1 (core capital) includes equity capital and disclosed reserves and absorbs losses while the bank operates. Tier 2 (supplementary capital) includes undisclosed reserves, subordinated debt, and revaluation reserves, absorbing losses at liquidation.

17. What is Priority Sector Lending (PSL) and what overall target applies to domestic commercial banks?

    PSL directs credit to neglected sectors like agriculture, MSMEs, education, housing, and weaker sections. Domestic commercial banks must lend 40% of Adjusted Net Bank Credit (ANBC) to priority sectors.

18. Within PSL, what are the sub-targets for agriculture and weaker sections?

    18% of ANBC for agriculture (with a sub-target for small/marginal farmers) and 12% for weaker sections (the micro-enterprise sub-target is 7.5%).

19. What is Financial Inclusion and name a flagship scheme promoting it?

    Financial Inclusion means providing affordable banking and financial services to all, especially the underserved. Pradhan Mantri Jan Dhan Yojana (PMJDY) is a flagship scheme offering zero-balance accounts.

20. Which regulator oversees the securities/stock market in India and when was it given statutory status?

    SEBI (Securities and Exchange Board of India), given statutory powers under the SEBI Act, 1992; headquartered in Mumbai.

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

    IRDAI (Insurance Regulatory and Development Authority of India), headquartered in Hyderabad.

22. What does PFRDA regulate?

    PFRDA (Pension Fund Regulatory and Development Authority) regulates the pension sector, including the National Pension System (NPS) and Atal Pension Yojana; headquartered in New Delhi.

23. What are the primary roles of NABARD and SIDBI?

    NABARD (National Bank for Agriculture and Rural Development) is the apex bank for agricultural and rural credit. SIDBI (Small Industries Development Bank of India) is the apex bank for financing and developing MSMEs; both headquartered in Mumbai (SIDBI: Lucknow).

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