SBI Clerk General/Financial Awareness Syllabus

General/Financial 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/Financial Awareness in SBI Clerk, not a summary of it.

1. 1

   Current Affairs

   4 topics

   • National News
   • International News
   • Sports
   • Awards and Honours
2. 2

   Banking Awareness

   3 topics

   • Banking Terms
   • Banking Abbreviations
   • Banking History
3. 3

   Financial Awareness

   3 topics

   • Budget and Economic Survey
   • Financial Institutions
   • Monetary Policies
4. 4

   Static GK

   3 topics

   • Country Capitals and Currencies
   • Important Days
   • Books and Authors

General/Financial Awareness flashcards for SBI Clerk

23 of 50 cards from the General/Financial Awareness deck — real questions with worked answers.

1. Banking Abbreviation: What does NEFT stand for, and how does its settlement mechanism work today?

   National Electronic Funds Transfer. It settles transactions on a continuous, near real-time basis in batches (24x7x365 since Dec 2019), with no minimum or maximum transfer limit set by the RBI.

2. Banking Terms: What is the difference between RTGS and NEFT?

   RTGS (Real Time Gross Settlement) settles each transaction individually and instantly with a minimum of Rs 2 lakh and no upper limit; NEFT settles in batches with no minimum amount. Both are now available 24x7.

3. Banking Abbreviation: What is IMPS and which body operates it?

   Immediate Payment Service, an instant 24x7 interbank funds transfer service operated by NPCI (National Payments Corporation of India).

4. Banking Term: What is the MICR code and how many digits does it have?

   Magnetic Ink Character Recognition code, a 9-digit code printed on cheques to identify the bank and branch; the first 3 digits denote the city, the next 3 the bank, and the last 3 the branch.

5. Banking Term: What does the IFSC consist of, and how many characters is it?

   Indian Financial System Code, an 11-character alphanumeric code: the first 4 letters identify the bank, the 5th is always 0 (reserved), and the last 6 characters identify the branch.

6. Banking Abbreviation: What do KYC and AML stand for in banking compliance?

   KYC = Know Your Customer (verifying customer identity and address); AML = Anti-Money Laundering (measures to prevent illegal generation of income through banking channels).

7. Banking Term: What is a NOSTRO account versus a VOSTRO account?

   A Nostro account is one a domestic bank holds in a foreign bank in foreign currency ('our account with you'); a Vostro account is one a foreign bank holds with a domestic bank in domestic currency ('your account with us').

8. Banking Term: What is the Bank Rate, and how does it differ from the Repo Rate?

   The Bank Rate is the rate at which the RBI lends long-term funds to banks without collateral/securities; the Repo Rate is for short-term lending against government securities. The Bank Rate is aligned with the MSF rate.

9. Monetary Policy: What is Open Market Operations (OMO)?

   The buying and selling of government securities by the RBI in the open market to control money supply and liquidity in the economy; buying injects liquidity, selling absorbs it.

10. Monetary Policy: What is the LAF (Liquidity Adjustment Facility) and its two components?

    A monetary policy tool allowing banks to borrow money through repo or park funds through reverse repo. Its components are the Repo Rate (injecting liquidity) and the Reverse Repo / SDF (absorbing liquidity).

11. Monetary Policy: What is the SDF (Standing Deposit Facility) introduced in 2022?

    A tool allowing the RBI to absorb surplus liquidity from banks without giving government securities as collateral; it now forms the floor of the LAF corridor, replacing the fixed reverse repo as the operative floor.

12. Banking History: When and where was the first State Bank of India predecessor 'Bank of Calcutta' established, and what was it later renamed?

    The Bank of Calcutta was established in 1806; it was renamed the Bank of Bengal in 1809. It later merged with the Bank of Bombay and Bank of Madras in 1921 to form the Imperial Bank of India.

13. Banking History: When was the State Bank of India (SBI) formed and from which institution?

    SBI was formed on 1 July 1955 by nationalising the Imperial Bank of India, following a recommendation of the All-India Rural Credit Survey Committee.

14. Banking History: When was NABARD established and on whose recommendation?

    NABARD was established on 12 July 1982 on the recommendation of the Shivaraman Committee, to be the apex body for agriculture and rural development financing.

15. Banking History: Which was the first bank in India established with limited liability and fully managed by Indians, and in which year?

    The Oudh Commercial Bank, established in 1881, was the first limited-liability bank managed by Indians; however, Punjab National Bank (1894) was the first bank purely with Indian capital that has survived.

16. Banking History: Which was the first Indian bank to be set up purely with Indian capital and management that still operates today?

    Punjab National Bank (PNB), established in 1894 in Lahore, was the first bank started solely with Indian capital and management that is still in operation.

17. Financial Institutions: What is the role of the EXIM Bank of India?

    The Export-Import Bank of India (established 1982) is the apex financial institution that finances, facilitates and promotes India's foreign trade (exports and imports).

18. Financial Institutions: What does NHB regulate, and who is its parent now?

    The National Housing Bank (established 1988) is the apex institution for housing finance and regulates housing finance companies; its regulatory powers over HFCs were transferred to the RBI in 2019, while NHB remains a refinancing body.

19. Financial Institutions: What is DICGC and what is the current deposit insurance cover per depositor per bank?

    Deposit Insurance and Credit Guarantee Corporation, a subsidiary of the RBI. It insures bank deposits up to Rs 5 lakh per depositor per bank (raised from Rs 1 lakh in February 2020).

20. Financial Institutions: What is a Payments Bank and what is its maximum deposit limit per customer?

    A differentiated bank that accepts deposits and offers remittances but cannot lend or issue credit cards; it can accept a maximum deposit of Rs 2 lakh per individual customer (raised from Rs 1 lakh in 2021).

21. Financial Institutions: What is the difference between a Small Finance Bank and a Payments Bank?

    A Small Finance Bank can both accept deposits and lend (focusing on small/priority sector borrowers); a Payments Bank can only accept limited deposits and offer payment/remittance services but cannot lend.

22. Budget: What are the three types of deficit defined in the Union Budget?

    Fiscal Deficit (total expenditure minus total receipts excluding borrowings), Revenue Deficit (revenue expenditure minus revenue receipts), and Primary Deficit (fiscal deficit minus interest payments).

23. Budget: What is the formula for Fiscal Deficit?

    Fiscal Deficit = Total Expenditure - Total Receipts (excluding borrowings). It represents the total borrowing requirement of the government.

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