RBI Grade B 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, not a summary of it.

1. 1

   Banking and Financial Awareness

   4 topics

   • RBI and Monetary Policy
     • Repo, reverse repo, CRR, SLR
     • Monetary Policy Committee
   • Banking Regulations
     • Banking Regulation Act
     • Deposit insurance (DICGC)
   • Financial Schemes and Initiatives
     • Government financial schemes
     • Digital payments (UPI, NEFT, RTGS)
   • Banking Abbreviations and Terms
     • Key financial terminology
2. 2

   National and International Current Affairs

   4 topics

   • Government Policies and Schemes
     • Recent flagship programmes
   • International Relations and Summits
     • G20, BRICS, SCO
   • Appointments, Awards and Sports
     • Key appointments
     • National and international awards
   • Reports and Indices
     • Global rankings of India
3. 3

   Economic Current Affairs

   3 topics

   • Union Budget
     • Key allocations and terms
   • Economic Survey
     • Major findings
   • Reports of RBI and Committees
     • Financial Stability Report
4. 4

   Static General Knowledge

   3 topics

   • Indian Polity Basics
     • Constitution and institutions
   • Geography and Environment
     • Climate and conservation
   • Science and Technology in News
     • Space and digital tech

General Awareness and Current Affairs flashcards for RBI Grade B

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

1. What is the Monetary Policy Committee (MPC) of the RBI, and how is it composed?

   A 6-member committee that sets the policy repo rate to achieve the inflation target. It has 3 RBI members (Governor as chair, a Deputy Governor, and one RBI officer) and 3 external members appointed by the central government. The Governor has a casting vote in case of a tie.

2. What is the inflation target set for the RBI under the flexible inflation targeting framework?

   4% CPI inflation, with a tolerance band of +/- 2% (i.e., 2% to 6%). It is set by the government in consultation with the RBI, reviewed every 5 years.

3. Define the Repo Rate and Reverse Repo Rate.

   Repo rate is the rate at which the RBI lends short-term funds to commercial banks against government securities. Reverse repo rate is the rate at which the RBI borrows funds from banks, absorbing liquidity.

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

   The percentage of a bank's net demand and time liabilities (NDTL) that it must keep as cash reserves with the RBI. No interest is earned on it; it is a tool to control liquidity.

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

   The minimum percentage of a bank's NDTL that it must maintain in the form of liquid assets like cash, gold, or approved government securities, held with the bank itself.

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

   A window allowing scheduled commercial banks to borrow overnight funds from the RBI against government securities, typically above the SLR requirement, at a rate slightly higher than the repo rate. It is the upper bound of the LAF corridor.

7. What constitutes the Liquidity Adjustment Facility (LAF) corridor?

   The repo rate and reverse repo rate define the corridor for overnight money market rates. The MSF rate is the ceiling and the SDF (Standing Deposit Facility) rate is the floor.

8. What is the Standing Deposit Facility (SDF)?

   A facility introduced in 2022 allowing the RBI to absorb liquidity from banks without giving government securities as collateral. The SDF rate is the floor of the LAF corridor, set 25 bps below the repo rate.

9. What is Open Market Operations (OMO)?

   The buying and selling of government securities by the RBI in the open market to manage liquidity. Buying securities injects liquidity; selling securities absorbs liquidity.

10. Under which Act is the RBI established, and in which year was it set up?

    The RBI was established under the Reserve Bank of India Act, 1934, and commenced operations on 1 April 1935. It was nationalized in 1949.

11. What is the Bank Rate?

    The rate at which the RBI lends long-term funds to commercial banks without collateral/securities. It is also a penal rate and is aligned with the MSF rate.

12. What does Net Demand and Time Liabilities (NDTL) refer to?

    The sum of demand liabilities (current/savings deposits payable on demand) and time liabilities (fixed/term deposits), minus inter-bank deposits. It is the base for computing CRR and SLR.

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

    Mandatory lending by banks to specified sectors (agriculture, MSMEs, education, housing, etc.). The overall target is 40% of Adjusted Net Bank Credit (ANBC) for domestic scheduled commercial banks.

14. How are bank assets classified based on Non-Performing Asset (NPA) norms?

    Standard assets (performing); and NPAs sub-divided into Sub-standard (NPA up to 12 months), Doubtful (NPA beyond 12 months), and Loss assets (uncollectible). A loan becomes an NPA when interest/principal is overdue for more than 90 days.

15. What is the Basel III framework's minimum Capital Adequacy Ratio (CRAR) requirement, including in India?

    Basel III mandates a minimum total CRAR of 8%; the RBI requires Indian banks to maintain 9%, plus a Capital Conservation Buffer of 2.5%, taking the effective requirement to 11.5%.

16. What is the Capital to Risk-Weighted Assets Ratio (CRAR) formula?

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

17. What is the difference between Tier 1 and Tier 2 capital under Basel norms?

    Tier 1 (core capital) includes paid-up equity capital and disclosed reserves, absorbing losses while the bank operates. Tier 2 (supplementary capital) includes undisclosed reserves, revaluation reserves, and subordinated debt, absorbing losses on winding up.

18. What is the Insolvency and Bankruptcy Code (IBC), and when was it enacted?

    The IBC, 2016, is a unified law consolidating insolvency resolution for companies and individuals. It provides a time-bound process (ideally 180+90 days) administered through the NCLT, with the IBBI as regulator.

19. What is the Deposit Insurance and Credit Guarantee Corporation (DICGC) cover limit?

    DICGC, a wholly owned RBI subsidiary, insures bank deposits up to Rs 5 lakh per depositor per bank (raised from Rs 1 lakh in 2020), covering principal and interest.

20. What is the Pradhan Mantri Jan Dhan Yojana (PMJDY)?

    A financial inclusion scheme launched in 2014 providing basic no-frills bank accounts, RuPay debit cards, accident insurance, overdraft facility, and access to pension and insurance for the unbanked.

21. Name the three social security schemes launched in 2015 and their core benefits.

    PMSBY (Pradhan Mantri Suraksha Bima Yojana) - accident insurance; PMJJBY (Pradhan Mantri Jeevan Jyoti Bima Yojana) - life insurance; APY (Atal Pension Yojana) - guaranteed pension for unorganized sector workers.

22. What are the three Mudra loan categories under PMMY?

    Under Pradhan Mantri Mudra Yojana: Shishu (loans up to Rs 50,000), Kishore (Rs 50,000 to Rs 5 lakh), and Tarun (Rs 5 lakh to Rs 10 lakh, since extended to Rs 20 lakh) for non-corporate, non-farm small businesses.

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