A to Z of RBI Grade B – Syllabus, Pattern etc.

Good Morning Readers,
With the announcement of RBI Grade B Officer vaccancies, we have constantly been getting mails about the exam and the new pattern the RBI has introduced. So here we are with most valuable information about the whole process. Last month, out of the blues, RBI proposed a new pattern for the examination to be held for the recruitment of Grade B Officer. It was a signal for the aspirants to start preaparing for the exam. This is considered to be one of the prestigious job in the banking industry and people who have already been working in any of the banks also desire for this position. So believe us, the competition that you are going to face in this recruitment drive will be totally different from others and it will be more fierce. Let us go into details.

Before describing anything about the exam, let us have a look on the number of vacancies published in the notice:
Of Vacancies
Caste (SC)
Tribes (ST)
Backward Classes (OBC)
One thing is pretty much clear from the above fact is that this process will require more focussed approach and smart work. If you are filling this form and thinking that it is still a month and half left, then believe me friends, many more aspirants are thinking that its just a month and half left. So the preparation starts now because later will be too late. And before starting your preparation, you all must be thinking about what could be the syllabus for the exam and how to start the preparation with such a little time left. So let me introduce you to the syllabus for each and every subject that you are going to get in the examination. For Phase-I which is tentatively scheduled on 21st/22nd November 2015, following is the subjectwise breakup:
(1) Phase-I online Examination (Objective Type):
Phase-I will be similar to any banking exam that you have appeared for and the level of questions will be of PO level. The only difference is the marks distribution for every subjects. In this, you have to be well versed with General Awareness section to get an edge. If you want to remain in the competition, then you will need to be thorough with all the banking basics and terminologies. It might sound simple, yet the most difficult section of phase-I. And for the rest of the sections, whatever you are preparing for the PO is sufficient. No need to do anything else but practice. 
of Questions
time of 120 minutes for all the sections
English Language
Note: The above mentioned breakup of the subjects and the marks allotted is according to the last year and is expected to remain same. But the real picture of this part will be more clear once the handouts will be released by the RBI(as mentioned in the recruitment notice).
(2) Phase-II online Examination:
Phase-II of the examination is tentatively scheduled on 7th December. The students who will be able to clear the phase-I of the recruitment process will only be eligible to appear for the phase-II exam. The Phase-II examination will be in shifts. Candidates are required to appear for all shifts. Separate Admission Letters will be issued for each shift. The below are the subject wise details of phase-II exam:
of Paper
of Paper
Economic and Social Issues
English(Writing Skills)
Descriptive, to be typed with the help of keyboard
Finance and Management or Economics or Statistics
NOTE: In Paper-III, candidates have to choose one of the three subjects at the time of online application. All question papers (in both the Phases, except the test of English) will be set bilingually in Hindi and English.
The Phase-II exam is itself very vast as it will focus on certain subjects and topics. The Syllabus provided by RBI is really very huge and it is really very difficult for the ones who are not from those background. Let us have a look at the syllabus now:
Paper-I – Economic and social Issues:
Growth and Development – Measurement of growth: National Income and per capita income – Poverty Alleviation and Employment Generation in India – Sustainable Development and Environmental issues. Economic Reforms in India – Industrial and Labour Policy – Monetary and Fiscal Policy – Privatization – Role of Economic Planning. Globalization – Opening up of the Indian Economy – Balance of Payments, Export-Import Policy – International Economic Institutions – IMF and World Bank – WTO – Regional Economic Co-operation. Social Structure in India – Multiculturalism – Demographic Trends – Urbanization and Migration – Gender Issues – Social Justice : Positive Discrimination in favor of the under privileged – Social Movements – Indian Political System – Human Development – Social Sectors in India, Health and Education.
Paper-II -English (Writing Skills):
The paper on English shall be framed in a manner to assess the writing skills including expression and understanding of the topic.
Paper-III -Finance and Management/ Economics/Statistics:

(A) Finance and Management:

(I) Finance

(a) Financial System

  • Regulators of Banks and Financial Institutions
  • Reserve Bank of India- functions and conduct of monetary policy, Banking System in India, Financial Institutions – SIDBI, EXIM, NABARD, NHB, etc.
(b) Financial Markets

  • Primary and Secondary Markets (Forex, Money, Bond, Equity,etc.), functions, instruments, recent developments.
(c) General Topics

  • Risk Management in Banking Sector
  • Basics of Derivatives: Forward, Futures and Swap
  • Changing Landscape of Banking sector
  • Recent Developments in the Financial Sector, Portfolio Investment, Public Sector Reforms, Disinvestments
  • Financial Inclusion- use of technology
  • Alternate source of finance, private and social cost-benefit, Public-Private Partnership
  • Corporate Governance in Banking Sector, role of e-governance in addressing the issues of corruption and inefficiency in the government sector.
  • The Union Budget – Direct and Indirect taxes; Non-tax sources of Revenue, GST, Thirteenth Finance Commission and GST, Finance Commission, Fiscal Policy, Fiscal Responsibility and Budget Management Act (FRBM),
  • Inflation: Definition, trends, estimates, consequences, and remedies (control): WPI, CPI – components and trends.
(II) Management:
Management: its nature and scope; The Management Processes; Planning, Organisation, Staffing, Directing and Controlling; The Role of a Manager in an Organisation. Leadership: The Tasks of a Leader; Leadership Styles; Leadership Theories; A successful Leader versus an effective Leader. Human Resource Development: Concept of HRD; Goals of HRD; Performance Appraisal – Potential appraisal and development – Feedback and Performance Counselling – Career Planning – Training and Development – Rewards – Employee Welfare. Motivation, Morale and Incentives: Theories of Motivation; How Managers Motivate; Concept of Morale; Factors determining morale; Role of Incentives in Building up Morale. Communication: Steps in the Communication Process; Communication Channels; Oral versus Written Communication; Verbal versus non-verbal Communication; upward, downward and lateral communication; Barriers to Communication, Role of Information Technology. Corporate Governance: Factors affecting Corporate Governance; Mechanisms of Corporate Governance. The questions on this section will be basic in nature.
(B) Economics

(a) Microeconomics

  • Consumers behaviour and firms; value of resources like land, labour and capital
  • Markets-monopoly, perfect and imperfect competition
  • General Equilibrium of price and activity, economic welfare and case for regulatory / policy interventions
(b) Macroeconomics

  • Measuring national income and its components; basic macro identities and idea of macro-balance; Goods and Financial Market Equilibrium (IS-LM Framework)
  • Major macro-economic school of thoughts; Classical, Keynesian and Monetarist
  • Consumption and Investment demand; demand management policies and their effectiveness
  • Money demand and supply; monetary and fiscal policies
(c) International Economics

  • Benefit of International trade; comparative and absolute advantage; effect of International trade on resources allocation and factor price equalisation; non-conventional trade barriers, optimum currency areas and effect of customs union
  • International finance and exchange rates issues in an open economy, benefits and costs of an inter-connected financial markets; evolution of international financial architecture
(d) Public Economics

  • Public Goods, instruments of financing, government tax and non-tax revenue
  • Direct and Indirect taxes, efficiency costs of commodity taxes, income taxation, labour supply and savings, corporate taxation and corporate behaviour
  • Government expenditure policy-various components, deficit financing and its impact on the economy, government debt and crowding out of private capital
(e) India’s Economy and Development Issues

  • India’s experimentations with planned development models and the outcomes, structural issues-savings and investment, demography, urbanization, productivity, etc., issues with poverty, inequality and employment
  • Agriculture- policy and developments, manufacturing competitiveness; what is holding India back, role of public sector enterprises in the key economic sectors, India’s resilient service sector; trade, tourism, communication, ITES, etc.
  • Financial sector regulation and reforms-banking, insurance and capital market, fiscal policy and the changing priorities of government, emergence of monetary policy and its new role
(C) Statistics:

  • Probability: Random variables, Theorems of probability, Conditional probability, Independent events, Bayes’ theorem and its application, expectation, moments, distribution functions, Binomial, Poisson, Geometric, Exponential, Negative binomial, Hyper geometric, Cauchy, Laplace, Logistic, Pareto, Log-normal, Beta and Gamma distributions, Weibull, Uniform, Bivariate normal distribution and truncated distributions, Markov’s inequality, Chebyshev’s inequality, Cauchy-Schwarz inequality, Laws of large numbers, Central limit theorems and applications.
  • Statistical Methods: Population and sample, Measures of central tendencies Parameter and Statistic, Correlation and Regression, intra-class correlation, multiple and partial correlations, Spearman’s coefficient of rank correlation, Z, chi-square, t and F statistics and their properties and applications, Large sample distributions, Variance stabilizing transformations, sin inverse, square root, logarithmic and z transformation.
  • Linear Models: General Linear models, BLUE, method of least squares, Gauss-Markoff theorem, estimation of error variance, Simple and Multiple linear regression models, Important assumptions and treatments in case of assumption’s violation, Regression diagnostics, Analysis of variance in one, two and three-way classifications, Analysis of Covariance in one and two-way classifications.
  • Statistical Inference: Properties of estimators, MVUE, Rao-Blackwell and Lehmann-Scheffe theorems, Cramer-Rao inequality, methods of estimation, properties of maximum likelihood and other estimators, confidence intervals. Simple and composite hypotheses, Type I and Type II errors, size and power of a test, Most Powerful and Uniformly Most Powerful tests, Neyman-Pearson lemma, Likelihood Ratio test and its properties and applications. SPRT, OC and ASN functions, Tests of goodness of fit. Parametric vs. Non-parametric Test, Frequently-used non-parametric inferential statistical methods.
  • Multivariate Analysis: Bivariate and Multivariate normal distribution, marginal and conditional distribution, Estimation of mean vector and covariance matrix, Asymptotic properties of estimators, Sampling distribution of  and S, Mahalanobis D2 and Hotelling’s T2 and its applications.
  • Optimisation Techniques and Statistical Quality Control: Linear Programming, Transportation Problem, Assignment Problem, Basics of Simulation, Quality control, Process Control and Product Control, control charts, Acceptance Sampling plan, single and double sampling plans (ASN, OC, ATI, LTPD, AOQL).
  • Sample Surveys and Design of Experiments: Simple and Stratified random sampling, ratio and regression methods of estimation, Double sampling, Systematic, Cluster, two stage and PPS sampling. Sampling and Non-sampling errors. Principles of Design of Experiments, Completely Randomized Design, Randomized Block Design, Latin Square Design, missing plot technique, 22 and 23 factorial designs, Split-Plot Design and Balanced Incomplete Block Design, Fractional factorial experiments
  • Applied Economic Statistics: Time Series vs. cross sectional data, Multiplicative and additive models, Auto-correlation, Partial autocorrelation, Smoothing techniques, Seasonal and cyclical adjustment. Price and Quantity Index numbers, Types of index numbers and their properties. Chain and Fixed base index numbers, Cost of Living Index numbers, Wholesale Price Index, Consumer Price Index, Index of Industrial Production, Gini’s coefficient, Lorenz curves, Application of Pareto and Lognormal as income distributions.
  • Vital Statistics: Sources of vital statistics compilation, Errors in census and registration data, Measurement of population, rate and ratio of vital events, Stationary and Stable population, Life Tables, Measures of Fertility, Mortality and Reproduction, Crude rates of natural growth, Pearl’s Vital Index.
  • Numerical Analysis: Principles of floating point computations and rounding errors, Linear Equations factorization methods, pivoting and scaling, residual error correction method, Iterative methods, Jacobi, Gauss-Seidel methods, Newton and Newton like methods, unconstrained optimization, Lagrange interpolation techniques, Cubic Splines, Error estimates, Polynomials and least squares approximation; Integration by interpolation, adaptive quadratures and Gauss methods.
  • Basic Computer Applications: Functional organization of computers, algorithms, basic programming concepts, Program testing and debugging, Subprograms and Subroutines, Sorting/searching methods, Database Management Systems, Software Engineering, Basic of Networking, Internet Technologies, Web and HTML, Distributed systems, Programming using C, MINITAB and FORTRAN.
The choice is yours that which subject out of (A), (B) and (C) you want to go with. The ball is in your court and you are the one to make the ultimate decision. But before making any decision, do remember that whatever you chose will affect your performance in the exam. And last but not the least, we are providing you the link of RBI where you will get the sample pappers for Grade B Officer recruitment process. It will clearly give you an idea what and how it is going to be.

Cut-Off for Phase-I in 2014:

Cut-Off for Phase-II in 2014

To view the cut-off for the year 2013: Click Here

To Download The Sample Papers: Click Here