Banking & Financial Awareness: notes & practice

RBI and monetary policy, banking history and structure, money and capital markets, government schemes and budget terms — a dedicated section in every bank exam.

Key topics

• RBI & Monetary Policy

  Repo, reverse repo, CRR, SLR, bank rate, MSF; MPC meets six times a year (bi-monthly).

• Banking Structure

  Types of banks (PSB, private, RRB, cooperative, small finance, payments), SBI and nationalisation history.

• Money & Capital Markets

  Primary vs secondary market, T-bills, bonds, stock exchanges SEBI/NSE/BSE roles.

• Budget & Economy Terms

  Fiscal deficit, revenue deficit, GDP, inflation types, direct vs indirect taxes.

• Financial Institutions

  NABARD, SIDBI, NHB, EXIM Bank, IRDAI, IMF, World Bank — purpose of each.

• Payments & Digital Banking

  UPI, NEFT, RTGS, IMPS, BBPS, NBFC rules, banking ombudsman.

Practice questions

Our own practice questions in the style of past papers.

1. 1. The repo rate is the rate at which:

   A. Banks lend to customersB. RBI lends to banksC. Banks lend to RBID. RBI prints money

2. 2. Which institution regulates the insurance sector in India?

   A. RBIB. SEBIC. IRDAID. NABARD

3. 3. NABARD was established to:

   A. Regulate stock marketsB. Support agriculture and rural creditC. Print currencyD. Run public-sector banks

4. 4. NEFT settles transactions:

   A. Instantly, round the clockB. In batchesC. Only on bank holidaysD. Only for foreign exchange

5. 5. Treasury bills are issued by:

   A. State governmentsB. The Government of India through RBIC. SEBID. Commercial banks

6. 6. Fiscal deficit means:

   A. Exports minus importsB. Total expenditure minus total non-borrowed receiptsC. Revenue minus capitalD. Inflation minus interest rate