RESERVE BANK OF INDIA

RECRUITMENT- GRADE B
JANUARY 8, 2012 RIJU BAFNA 17 COMMENTS

This entry has been written by a selected RBI candidate.
Career with Reserve Bank of India
Reserve Bank of India recruits Officers in Grade ‘B’ (General) and the number
of vacancies usually range from 70 to 80 for each panel year. The candidate
must be between 21 and 30 years (subject to relaxation for certain
categories) and must have the requisite educational qualifications (First Class
Bachelor’s degree/ Second Class Masters degree etc.)
The selection is usually through Written
Examinations and Interview. Written Examination isconducted in two
phases—Objective (Phase I) and Subjective (Phase II). The subjective
exam is conducted 3-4 months after the objective exam for the candidates
qualifying in the objective test.
The Objective Stage or Phase I of WE
Objective Paper is of 3 hours duration for 200 marks. The objective test or
Phase I act as a filtering mechanism. The candidate is subjected to a
predictable test similar to a MBA entrance or Bank PO exams. The question
paper is divided in four sections—1) General Awareness, 2) Reasoning,
3) English and 4) Quantitative aptitude. Candidates have to secure
minimum marks separately for each section. The number of candidates
taking the exam is usually between 1, 50,000 to 2, 00,000.
The objective exam is not difficult and a candidate with average aptitude for
such a general test will be able to clear it. There are certain points that
distinguish RBI’s objective test from other similar exams:1. General Awareness and Reasoning occupy the pride of place in the exam
and have greater number of questions and weightage compared to
Quantitative aptitude and English.
2. A candidate is not allowed to move to the other sections unless the time
allowed for a particular section has lapsed. So, if General Awareness has

anyone which you feel is the best for you. There are number of books available for Quantitative Aptitude for entrance examination. RBI DOES NOT expect you to be a human calculator and the questions are of a reasonable standard and with some practice even those who have not been on talking terms with numbers for years will do just fine. The time tested strategy for preparing is the regular reading of a good national daily (The Hindu is usually a favorite). It has been observed that general awareness section is dominated with current issues and economy based questions. it can easily reach around 110 marks (for general category) out of total 200 marks. The result of this stage is usually declared within one month of the examination. The sectional cut-off is usually low but the overall cut off for selection to phase II of written examination is often high. Financial Express etc. the candidate will not be allowed to access the questions of some other section (say.been allotted 45 minutes and 60 questions. there are certain tips that are useful for this stage of examination. It is usually the time factor that counts the most in reasoning section. Tips for Success in Phase I Though there is no fixed method to succeed in what is essentially an aptitude test. Business Line. even if he or she has attempted all the 60 questions. The Subjective Stage or Phase II of WE . Same could be said about level of reasoning questions. however. can be relied upon. those who have not been in the race of a government job or a MBA seat might need to treat this section with caution.) The candidates with certain distaste for mathematics might need to push themselves. RS Agarwal’s Verbal and non-Verbal Reasoning is an exhaustive book and can be relied upon to ensure good results. English) unless 45 minutes are over. 3. It is the second most important section after General Awareness and can make or mar a candidate’s prospect. but only just. It is also useful to supplement it with a business daily (Business Standard. English portion is usually the easiest and does not require any particular preparation.

RBI provides an indicative syllabus with the clarification that it is by no means exhaustive. Social Structure in India – Multiculturalism – Demographic Trends – Urbanisation and Migration – Gender Issues – Social Justice : Positive Discrimination in favour of the under privileged – Social Movements – Indian Political System – Human Development – Social Sectors in India. Capital Market Intermediaries and their Regulation. Functions of the Money Market. Exchange Risk Management. Export-Import Policy – International Economic Institutions – IMF and World Bank – WTO – Regional Economic Cooperation. Outlays. Syllabus for Phase II: Paper I – English Essay. Money Market and Foreign Exchange Market. Role of Banks and Financial . Economic Reforms in India – Industrial and Labour Policy – Monetary and Fiscal Policy – Privatisation – Role of Economic Planning. Globalization – Opening up of the Indian Economy – Balance of Payments.This stage consists of three papers: Paper I – English Paper II – Economic and Social Issues and Paper III – Finance and Management. New Measures. Capital Market. Paper II – 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. Each of these papers is of 3 hours duration carrying 100 marks. Non-tax sources of revenue. Paper III – Finance and Management: Finance : The Union Budget – Direct and Indirect taxes. Business/Office Correspondence. The Foreign Exchange Market. Growth and Operation of the Money Market. Comprehension. Exchange Rate Management. Stock Exchanges and their Regulation. From FERA to FEMA. Précis writing. Role of SEBI. Thus related topics even though not specifically mentioned should be part of the preparation. Health and Education. Financial Sector Reforms.

Barriers to Communication. Planning Organisation. A poor performance here will end your progress to interview stage and even if you are somehow able to barely clear the cut off with low scores. Concept of Morale. Verbal versus non-verbal Communication.Institutions in Economic Development. The Management Processes. Directing and Controlling. Goals of HRD. Motivation. Morale and Incentives: Theories of Motivation. then you will require an exceptional performance in interview and lot of luck to make it to final list of selected candidates. Staffing. you have to do very well in this stage. Importance of Good Performance in Phase II for Final Selection If you want a career with RBI. Factors determining morale. Communication: Steps in the Communication Process. upward. Human Resource Development: Concept of HRD. failure and anguish. Performance Appraisal – Potential appraisal and development – Feedback and Performance Counseling – Career Planning – Training and Development – Rewards – Employee Welfare. II & III taken together in phase II written examination for shortlisting the candidates for interview (out of total 300 marks). There is no cut-off in the interview and thus a very good score in written stage insures you against a mediocre or poor interview. Leadership Styles. Candidates with very good scores in written and very poor performance in interview have made it to the final selection list but the reverse—great scores in interview and poor marks in written has often lead to heartbreak. Regulation of Banks and Financial Institutions. Mechanisms of Corporate Governance. . Communication Channels. Leadership: The Tasks of a Leader. Disinvestment in Public Sector Units. Role of Information Technology. The Role of a Manager in an Organisation. downward and lateral communication. Management: Management: its nature and scope. Leadership Theories. A successful Leader versus an effective Leader. Please see the information provided by RBI for the 2010 panel year examination to appreciate the importance of Phase II: Aggregate cut – off marks in paper I. The interview is just for 50 marks while the written test is for 300 marks. Corporate Governance: Factors affecting Corporate Governance. Role of Incentives in Building up Morale. How Managers Motivate. Oral versus Written Communication.

For Paper II: Economic and Social Issues For Economic Related Topics: The following material is extremely useful to cover most of the syllabus for this paper. Dutt and Sundaram’s Indian Economy (latest edition) 2. a useful platform to share information and interact with fellow aspirants. Government of India . 199(Gen) 181(OBC) 181(SC) 178(ST) Tips for Selection Phase II: The previous examination question papers for this stage are available on the Internet and have been shared by the candidates on social networking website Orkut in a community named ‘Reserve Bank of India Grade B Exam2009’ and ‘Reserve Bank of India Grade B Exam-2010’. Candidates who do not regularly appear for such subjective examinations or have undergone degrees that do not require them to write essay type answers in examination are advised to devote some time to honing their written composition skills as part of their preparation. 1. Of vacancies notified under each category. Last 2-3 Years Economic Survey. Uma Kapila’s Indian Economic development since Independence (latest edition) 3. For Paper I: No special preparation required.171(Gen) 156(OBC) 150(SC) 150(ST) Aggregate marks in phase II Written examination and Interview taken together (out of total 350 marks) obtained by the last recommended candidate under the respective category with reference to the no. coherence in presentation and lucidity of the language of the answer matters a lot. Ultimately. There is no short cut for this stage and with the exception of Paper I (English). it requires some effort and focused preparation. when there is not much to distinguish between answers of candidates.

which focuses on current issues and topics of Group Discussion can be useful. Since the questions are essentially on regulatory finance. The questions can range from unexpected (like write an essay on regulation of stock exchanges) to mundane (what do you understand by credit ratings). Management Portion: . environment. The module VI of Company Secretary Executive exam by ICSI on Securities Laws is also a very useful resource. For Social Issues: This is a very broad area and there is no particular book which can be prescribed. also cover some important topics in this section.The questions are of essay type and familiarity with recent developments and relevant statistics shall be an advantage. Further. Report on Currency and Finance by RBI. Class XI and XII books of Sociology of NCERT are good background text for preparation. A start can be made by going through the Finance section of India Year Book by Publication Division. Some of the social issues are also addressed in the economic books suggested above. Regular reading of editorial sections of good newspapers is a must as this paper usually has questions based on current issues.. For Paper III: Finance Portion: This is perhaps the trickiest part of the syllabus. The best resource for this section is the websites of RBI and SEBI. Ministry of I&B. The candidate usually has to attempt 3 questions out of 5. The candidate should start with the FAQs section on the website of these two regulators. reservation. gender disparity etc. the best way to cover the topics in this section is searching through the reports available on RBI or SEBI’s website. The candidate is given the choice to attempt any 5 out of 9 or 10 questions (economic and social issues combined). it is helpful if one understands the regulatory and administrative framework for financial regulation in India. Reading a good monthly competitive exam magazine like Pratyogita Darpan etc. The questions are general is nature like corruption. Yet.

This portion initially disheartens some of non-management background candidates and appears a spoiler. The results are declared in 7-10 days of last interview. interview is conducted in a very cordial manner and the questions are related to the candidate’s background. SLR. NPA. Usually the entire process extends to 11-12 months (from the date of recruitment advertisement to final results of the interview). Banking terms related questions and being asked to comment on recent relevant financial developments is highly probable. The interviews are conducted over a period of 6-8 weeks in different cities. The following books are established classics and can be relied upon to crack this portion easily. High scores are an aberration as even the successful candidates don’t score much above 30. Remain confident even if you have to face some unexpected questions. However.Robbins The results for this stage are declared within 2 months of the examination. For questions related to salary and prospects. It is advisable for the candidate to refer only to the standard texts as there is plethora of management books. But. not made) and with some background reading even a non-management background candidate will be able to articulate his views. Organizational Behavior: Stephen P. No special preparation is required except reading newspapers to be in touch of current issues. 1. etc. The candidate usually has to attempt 2 questions out of 4.) then skimming through the Indian Economy Pratiyogita Darpan Extra Issue Series will be a good investment. Principles of Management – Koontz and O’Donnell 2. But. the questions are usually very open ended (like comment on Great Leaders are born. Interview is essentially a personality test as the knowledge has already been tested at written stage. it best to quote from the RBI’s advertisement: “SERVICE CONDITIONS / CAREER PROSPECTS: . if you are not comfortable with Economics and Financial terminology (Like CRR. Tips for Interview: RBI’s panel has traditionally been parsimonious when it comes to awarding marks in interview.

allowance for furnishing of residence.) on a cost to the Bank basis.21000-1000-30000-EB-1000-32000-1100-36400 applicable to Officers in Grade B and they will also be eligible for Dearness Allowance. newspaper. Interest free festival advance. The number of maximum increments will be 4. reimbursement of expenses for maintenance of vehicle for official purpose.p. The Board/Bank will not entertain any request received after the interview. Consumer Articles. (ii) Perquisites: Bank’s accommodation subject to availability. will consider requests for higher emoluments on account of higher qualification/special experience of value to the Bank at the interview stage only. Free dispensary facility besides reimbursement of medical expenses for OPD treatment/hospitalization as per eligibility. book grant. etc. (approx. the Bank may.a. At present.38.000/. consider granting up to four advance increments. telephone charges.(i) Pay Scale: Selected Candidates will draw a starting basic pay of Rs.853/-. in the scale of Rs. The Board. Leave Fare Concession (once in two years for self. The posts also carry benefits of Provident Fund. at its sole discretion. NOTE: For candidates possessing very high academic or professional qualification/ experience of significant value to the Bank. Loans and Advances at concessional rates of interest for Housing. Pension and Gratuity.21. initial monthly Gross emoluments to direct recruit Grade B Officers are approximately Rs.m. spouse and eligible dependents). Family Allowance as per rules in force from time to time. Personal Computer. etc. House Rent Allowance. Such information may be furnished in the Bio-data form in the appropriate column.00 lakhs p. at the sole discretion. as per eligibility.” . Total pay and allowances along with admissible perquisites attached to the post considering market value of housing in Mumbai work out at the minimum of Rs10. Car. Education. Local allowance.