Banking Awareness: Preparation Tips

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Banking Awareness: Preparation Tips

Are you preparing yourself for bank examinations in India? Then, you should have heard about banking awareness section. This section generally comes as a subsection in general awareness section in Bank PO exams.

How important is general awareness section?

It is an important section to focus and you should give enough time, importance, and effort when you prepare for this section. Here are some of the reasons for the same:

  • This section nearly forms 25% of total objective type questions asked in Bank Examinations. In addition, out of the total score, 20% weightage is given to the score you get in this section.
  • Simple questions are generally asked in this section. This means that when you spend some quality time to prepare for this section, you can surely get good returns for your efforts.
  • In addition, this section will not consume much of your time in the banking exam, but it will bring you a great score. Of course, this will happen only when you prepare well for this section.
  • This section is important both for mains interview and also for GD rounds in banking recruitment.

Topics to cover when preparing for banking awareness:

When you prepare for this section, there are some types of obvious questions asked in this section. So, there is better scope to score well. Here are some of the topics that are generally covered through the questions in Bank Exams:

  • The name of the CEO and MD of major banks along with the year of establishment of the bank. Also, you should know the headquarters for different banks.
  • Crucial schemes announced recently, acquisitions and mergers that took place recently in the banking sector. Particularly, you can focus on the events that happened in the 6 months prior to the examination.
  • It is better to closely track the activities of crucial organizations related to banking and finance sector like IRDA, NABARD, SIDBI, and SEBI.
  • Milestones in the banking industry like the first banks to introduce revolutions like digital banking, cheque system, ATMs, etc.
  • The working and history of Indian banking system
  • Crucial amendments and constitutions that affected the economy of the country to a great extent.

How to approach the preparation for banking awareness?

  • Keep a note of all your preparations. It can be hand notes or digital notes on your mobile phone or tablet as per your convenience.
  • When you are memorizing important years, just relate the years that have close importance in your personal life. This will help you remember dates and years.
  • Just prepare a list of crucial committees and organizations in the banking sector. Also, here you should have notes about their major functions, year of establishment, headquarters.
  • Similarly, take a note of the latest popular personalities in the banking sector.

Topics generally included in the banking awareness section:

Remember that banking awareness is a vast subject, but here we have shortlisted the most important topics under banking awareness based on the IBPS-PO papers of the past 5 years:

  • Foreign exchange reserves in India
  • SARFAESI and NPA
  • The role of RBI in the Indian Banking System
  • Legislation, Committees & Acts: Budget, Companies Bill, Railway Budget and economic survey
  • Financial and economic concepts and terms like Money supply, open market operations, mutual funds, SLR, the bank rate, reverse repo, repo rate and CRR.
  • Organizations: World Bank, Finance Commission, Planning Commission and 5-year plans, NABARD
  • History of the banking system in India like when was the first bank in India setup.
  • New policies and schemes introduced by government recently
  • Abbreviations for banking terminologies
  • Priority sector lending
  • Kinds of money instruments, banking, and markets
  • BASEL norms
  • Tagline’s of banks and their headquarters
  • Non-banking financial companies: difference from bank, definition, etc.
  • Varied kind of accounts and their corresponding rates of interest.

Recently asked questions:

Besides understating the type of questions, it will help you better, if you know about the actual questions asked in the bank exam. Here is the list of some questions asked recently along with their answers:

  • To which country the Federal Reserved acts as the central bank? – The United States of America
  • A scheme was recorded in the Guinness Book for a huge one-day registration. What is the name of this scheme? PM Jhan Dhan Yojana
  • Which bank formed the Bi-Monthly policy – Reserve Bank of India
  • The RRB Act was framed by which committee? – Narsimham Committee
  • Where is the headquarters of Central Bank of India? In Mumbai.
  • Who launched Rupay – The NPCI
  • Indian bank headquarters is located in which city? – Chennai
  • What is the lock period of KVP scheme? 30 months
  • What is not the function of a payment bank? The bank cannot loan money to the public.
  • To which industry does Basel Committee associated? Banking Industry
  • Bank with head office in Kolkata – Bandhan Bank
  • First micro-finance company to be converted into a bank – Bandhan Bank.
  • What is the present REPO Rate? 8%
  • What does C stand for in KYC – Customer
  • Time limit for small banks to be in operation – 18 months.
  • What is the name of the website launched by the Finance Minister or education loan? www.vidyalakshmi.co.in
  • RRB is funded by central and state government and which other institution? Sponsored bank.
  • Bank Board Bureau is responsible for appointing heat of which banks? Public Sector Banks.

Keys to preparation:

The key to scoring well in banking awareness section is that you should keep yourself updated about the latest happenings in the finance and banking industry in India. There are websites that help candidates preparing for bank exams in this regard.
They offer regular updates and they also offer bank awareness capsules that will ease your preparation for this section. Just view many past question papers and you will find many repeated questions. When you know the answers to these questions and also when you are aware of the latest updates, you can score well in this section for sure.

By | 2017-06-30T12:50:20+00:00 June 30th, 2017|Articles|0 Comments

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