RBI Grade B Officer General Awareness and Current Affairs Syllabus

General Awareness and Current Affairs 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 and Current Affairs in RBI Grade B Officer, not a summary of it.

1. 1

   Banking and Financial Awareness

   3 topics

   • RBI and Monetary Developments
     • Recent monetary policy decisions
     • RBI circulars and regulatory actions
   • Banking Schemes and Policies
     • Government financial inclusion schemes
     • Priority sector lending norms
   • Financial Sector Updates
     • Mergers, IPOs, and market developments
     • Insurance and pension reforms
2. 2

   National and International Current Affairs

   3 topics

   • Government Schemes and Policies
     • Flagship central schemes
     • State-level initiatives
   • International Relations and Summits
     • G20, BRICS, SCO developments
     • Bilateral agreements
   • Reports, Indices and Rankings
     • Global indices (Ease of Doing Business, HDI)
     • Economic Survey highlights
3. 3

   Static General Knowledge

   3 topics

   • Indian Polity and Constitution
     • Fundamental rights and duties
     • Constitutional bodies
   • Economy and Institutions
     • Headquarters of financial bodies
     • Important banking terms and abbreviations
   • Awards, Sports and Miscellaneous
     • National and international awards
     • Sports events and books/authors

General Awareness and Current Affairs flashcards for RBI Grade B Officer

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

1. What is the Repo Rate, and what does the RBI use it for?

   The Repo Rate is the interest rate at which the RBI lends short-term funds to commercial banks against government securities. It is the RBI's principal tool to control liquidity and inflation; raising it makes borrowing costlier and curbs inflation.

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

   Repo Rate is the rate at which RBI lends to banks; Reverse Repo Rate is the rate at which RBI borrows from banks (absorbs excess liquidity). Reverse repo is always lower than repo rate.

3. Who sets the policy repo rate in India and how often does the deciding body meet?

   The Monetary Policy Committee (MPC) sets the repo rate. It has 6 members (3 from RBI including the Governor, 3 nominated by the government) and meets at least 4 times a year (bi-monthly, i.e., 6 times).

4. What is the inflation target mandated to the RBI under the flexible inflation targeting framework?

   4% CPI inflation, with a tolerance band of +/- 2% (i.e., 2% to 6%). The target is set by the Government in consultation with the RBI for a 5-year period.

5. What is the Cash Reserve Ratio (CRR)?

   CRR is the percentage of a bank's Net Demand and Time Liabilities (NDTL) that it must keep as cash reserves with the RBI. It earns no interest and is used to control liquidity in the banking system.

6. What is the Statutory Liquidity Ratio (SLR)?

   SLR is the minimum percentage of NDTL that banks must maintain in the form of liquid assets such as cash, gold, or approved government securities, before lending to customers.

7. Within the LAF corridor, how are the MSF rate and reverse repo positioned relative to the repo rate?

   The Marginal Standing Facility (MSF) rate is the upper bound (repo + 0.25%) and the Standing Deposit Facility/reverse repo is the lower bound (repo - 0.25%). The repo rate sits in the middle of the Liquidity Adjustment Facility (LAF) corridor.

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

   The SDF is a tool that allows the RBI to absorb liquidity from banks without giving government securities as collateral. It replaced the fixed reverse repo as the floor of the LAF corridor.

9. What is the Bank Rate, and how does it differ from the Repo Rate?

   The Bank Rate is the long-term rate at which RBI lends to banks without collateral and is linked to the MSF rate. Unlike the repo rate (short-term, collateralized), the Bank Rate carries penal provisions and is used for longer-term lending.

10. What does Open Market Operations (OMO) refer to in RBI's monetary policy?

    OMO refers to the RBI buying or selling government securities in the open market to manage liquidity. Buying injects liquidity; selling absorbs liquidity.

11. What is Priority Sector Lending (PSL) and what is the overall target for domestic banks?

    PSL mandates banks to lend to specified priority sectors (agriculture, MSMEs, education, housing, renewable energy, etc.). Domestic banks must lend 40% of Adjusted Net Bank Credit (ANBC) to priority sectors.

12. What is the PM Jan Dhan Yojana (PMJDY)?

    PMJDY, launched in 2014, is a financial inclusion scheme providing universal access to zero-balance bank accounts, RuPay debit cards, accident insurance, and overdraft facilities to the unbanked.

13. Name the three social security schemes launched in 2015 under the Jan Suraksha framework.

    PMJJBY (Pradhan Mantri Jeevan Jyoti Bima Yojana - life insurance), PMSBY (Pradhan Mantri Suraksha Bima Yojana - accident insurance), and APY (Atal Pension Yojana - pension).

14. What is the deposit insurance cover provided by DICGC per depositor per bank?

    Up to Rs 5 lakh per depositor per bank, covering both principal and interest. It is provided by the Deposit Insurance and Credit Guarantee Corporation (DICGC), a wholly-owned RBI subsidiary.

15. What are the four differentiated bank categories in India besides universal banks?

    Small Finance Banks (SFBs), Payments Banks, Regional Rural Banks (RRBs), and Local Area Banks. (Payments banks cannot lend or issue credit cards.)

16. What is the key restriction on Payments Banks regarding deposits and lending?

    Payments Banks can accept demand deposits up to Rs 2 lakh per customer but cannot undertake lending activities or issue credit cards. They must invest in government securities and bank deposits.

17. What is the difference between NEFT and RTGS payment systems?

    NEFT (National Electronic Funds Transfer) settles in half-hourly batches with no minimum/maximum limit; RTGS (Real Time Gross Settlement) settles transactions individually in real time for amounts of Rs 2 lakh and above. Both are available 24x7.

18. What is UPI and which organization operates it?

    UPI (Unified Payments Interface) is a real-time instant payment system enabling inter-bank transactions via mobile. It is operated by the National Payments Corporation of India (NPCI).

19. What is the Prompt Corrective Action (PCA) framework of the RBI?

    PCA is a framework under which RBI imposes restrictions on weak banks breaching thresholds on Capital (CRAR), Asset Quality (Net NPA), and Leverage. It restricts dividend, branch expansion, and lending to protect financial stability.

20. What does CRAR (Capital to Risk-Weighted Assets Ratio) measure, and what is the Basel III minimum in India?

    CRAR measures a bank's capital as a percentage of its risk-weighted assets, indicating its ability to absorb losses. Under Basel III, RBI mandates a minimum of 9% (plus a Capital Conservation Buffer of 2.5%, totaling 11.5%).

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

    An NPA is a loan or advance where the principal or interest payment remains overdue for more than 90 days. NPAs are sub-classified as Substandard, Doubtful, and Loss assets.

22. What is the Insolvency and Bankruptcy Code (IBC), 2016?

    The IBC is a unified law for time-bound resolution of insolvency for companies and individuals, aiming to resolve cases within 330 days. It is administered through the NCLT and overseen by the IBBI.

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