While preparing for such banking exams as SBI PO, IBPS PO, and regulatory body examinations, like RBI Grade B, candidates find it very difficult because of the vast syllabus of General Awareness and Banking Awareness. Considering there are hundreds of economic policies and other financial concepts in the media, it becomes really difficult for candidates to concentrate.
However, the key to scoring well in this section is not in cramming all of these concepts but rather in prioritization – realizing which of the basic concepts in the world of banking should be concentrated on. Through analysis of previous exam patterns, it becomes possible to identify which of the banking concepts are highly valued by examiners and need to be prioritized.
Some students lack the right direction while they prepare for their exams. If you want proper guidance, then you can opt for the best bank coaching.
Understanding the Weightage of Core Banking Concepts
Read the following pointers to learn and understand the weightage of core banking concepts:
Monetary Policy & Regulatory Frameworks (High Weightage)
The starting point of every banking examination will always be the RBI and the monetary policies it uses. Here, the examiner will judge you on the extent to which you know about the workings of the central bank in regulating the money supply.
This can safely be called the most important domain of the syllabus:
- Quantitative Tools: Your grasp of the Repo Rate, Reverse Repo Rate, Marginal Standing Facility (MSF), Bank Rate, Cash Reserve Ratio (CRR), and Statutory Liquidity Ratio (SLR) needs to be crystal clear. Definitions are unlikely to come in the board exams, and the impact of changing such ratios on inflation and liquidity is always examined.
- Monetary Policy Committee (MPC): The membership structure and the voting trends of the MPC, along with the bi-monthly monetary policy resolutions, will require your attention.
- Regulatory Frameworks: Terms like Prompt Corrective Action (PCA), Capital Adequacy Ratio as per the Basel III Accord, and IBC Reforms need to be given more importance.
Management of NPAs and Balance Sheet Strength (Medium-High Weightage)
With banks facing issues managing credit risks, the topic of NPAs has become extremely relevant for written exams and even interviews. Moreover, another aspect that is looked at very closely by the examiners is the way banks deal with non-performing loans. One should be familiar with the functioning of ARCs, the SARFAESI Act, and the recently formed National Asset Reconstruction Company Limited (NARCL), better known as “Bad Bank.”
Financial Inclusion & Government Policies (High Weightage)
The purpose of public sector banks is the development of the nation, which is the reason that social banking and financial inclusion have high weightage. It is in this section that the theory and actual government initiatives collide head-on.
In order to fetch marks, it is essential that you know:
- Priority Sector Lending (PSL): The precise objectives that RBI has laid down for domestic and foreign banks, such as allocating at least 40% of their lending to sectors such as agriculture, MSMEs, and education.
- Social Schemes: The precise criteria and implementation process of landmark schemes such as Pradhan Mantri Jan Dhan Yojana (PMJDY), PM Mudra Yojana and micro-insurance schemes. Learn their eligibility criteria and maximum loan amount.
- Specialized Banking Systems: Operational parameters of Specialized Banks such as SFBs and Payments Banks.
Digital Banking Technology and Payment Systems (Medium Weightage)
With banking experiencing a technological revolution, there is a move away from old ideas that are anchored in physical banks and towards testing in FinTech. These days, many top platforms offer effective guidance that will keep students motivated. Why don’t you try the best SSC coaching that could propel you toward success in the SSC exam?
Conclusion
Being able to get through the Banking Awareness portion of the exam can only be done through smart studying, not necessarily hard work. Giving each and every page of your study material the same degree of importance will end up giving you information overload and a lack of retention of data.
When you focus on Monetary Policy, NPA Management, Financial Inclusion, and Digital Payments, you are gearing yourself with what the examiner has in mind. These key topics must first be learned, followed by monitoring their changes on a day-to-day basis in financial news.
