How do I prepare for the RBI Grade B Phase – 2 examination?

The RBI Grade B Phase II has the most unique exam pattern of all time if we look at the history and exam patterns of all other government or banking exams. It mainly consists of three sections: English (Writing,) Finance and Management (F&M,) and Economic and Social Issues (ESI.) Each of the mentioned sections is worth 100 marks.  

You should remember that both Finance and management, and Economic and Social Issues will contain objective-type questions. On the other hand, English will demand you to write the answers using the keyboard. The total time given for every subject would be 90 minutes.  

Some pointers you should note before preparing for RBI Grade Phase 2 Exam 

• The phase 1 exam of RBI Grade B is a highly qualifying entrance but Phase 2 is what brings the level playing field. When it comes to academics, phase 2 has the most relevant subjects. You need to master them if you want to work at the Reserve Bank of India. 
• The amount and range of subtopics within the technical sections can overwhelm you. But with the right guidance, it won’t be an issue. 

RBI Grade B Phase 2 Syllabus 

Finance and Management 

• Human Resource Development 
• Motivation and Incentives 
• Regulators of banks and financial institutions 
• Development in the Financial Sector 
• Financial sector Regulations 
• Monetary Policy 
• Union Budget 
• Inflation 
• Regulation of Banks 
• Risk Management in Banking Sector 
• Technology in Finance 
• Corporate Governance 
• The Managing Process 
• Career Planning 
• Role of Incentives 
• Role of Information Technology 
• Communication Channels 
• Nature and Scope of Management 
• Leadership 

Economics and Social Issues 

• Economic Reforms in India 
• Social Structure in India 
• Corporate Governance 
• Development in the Financial Sector Export-Import Policy 
• Growth and Development 
• Human Resource  
• Development Inflation 
• Regionalism and Language Conflicts 
• Poor Education Standards 
• Globalisations 
• Illiteracy 
• Balance of Payments 
• Rise in Inequality 
• Rigid Labour Law 
• Monetary and Fiscal Policy 
• Social Sectors in India 
• Benefits of International Trade 
• Direct and Indirect Taxes 
• Insurance and Capital Marketing 
• Government debt 
• Employment Generation in India 
• Sustainable Development 

English 

• Precis Writing 
• Essay Writing 
• Comprehension 

Tips to prepare for Finance and Management 

Questions of management can be high-scoring if one is clear with their concepts. Questions asked are static in nature. Go through all the IGNOU management notes to clear out concepts. Try to read RBI speeches, quarterly announcements, monthly reports, annual reports, bulletin, website content, etc. Acquire detailed knowledge of the current year’s budget, fiscal reports, economic survey for gaining insights on the present condition of the Indian economy. Read NITI Aayog recent reports as well

. 

Finance 

This can take some of your extra time because finances are the most technical questions on the entire paper. Questions will be based on Indian financial markets, system, and respective bodies.  

• Be well aware about the functioning of the major financial bodies such as RBI, NABARD, SEBI, National and Rural banks. 
• Cover various elements of financial market such as launch of new schemes, credit market, various asset classes, corporate valuation characteristics, saving instruments, free cash flow, NOPAT, enterprise value added, market value added, etc.  

Prepare separately for financial markets: 

• Primary and Secondary Markets (Bond, Forex, Equity, Money, etc.) 
• Instruments 
• Functions 
• Recent developments 

Other general topics include: 

• Basics of derivatives 
• Financial Inclusion 
• FinTech 
• Corporate governance of the banking sector 
• Risk Management in Banking Sector 
• International banking system and global financial markets – trends and latest news 
• Union Budget – Concepts, trend, approach 

Management 

• Fundamentals of Management and Organisational Behaviour 

1. Introduction to Management 
2. Evolution of management thought: Administrative, Human Relations, System approach to management 
3. Managerial roles and management functions 
4. Nudge theory 

• Meaning and Concept of Organisational behaviour, Personality 

1. Factors affecting personality 
2. Big five model of personality 
3. Alderfer’s ERG theory 
4. The concept of reinforcement 
5. Content theories (Maslow’s need theory) 
6. McClelland’s theory of needs 
7. Herzberg’s two-factor theory 
8. Process theories (Adam’s equity theory, Vroom’s expectancy theory) 

Leadership

1. Theories (Trait, Behavioural, Charismatic, Transactional & Transformational leadership) 
2. Analysis of Interpersonal Relationship 
3. Organizational change: Kurt Lewin theory of change 
4. Organisational Development (OD) 
5. Theories of Planned Change (Lewin’s Change Model) 
6. Action Research model 

• Ethics at the workplace and Corporate Governance 
• Communication 

English (Writing Skills) 

One essay for 40 marks, 1 precis writing for 30 marks, 1 reading comprehension for 30 marks.  

• Answering a passage daily is key to score well in reading comprehension. 
• Start writing essays on your laptop or desktop. Increase your typing speed. This goes without saying the more you write the more you will get aware of all kinds of writing mistakes. 
• Choose financial and economical subjects for essay writing 
• Work on your grammar and tenses 

Recommended books for Phase 2 Preparation: 

Finance  

• An introduction to Economics – A W Stonier and DC Hauge  
• Monetary Theory and Public Policy – Kenneth Kurihara 
• Indian Economy – Mishra and Puri 
• Indian Economy – R. Dutt and KPM Sundaram 
• Public Finance – K K Andley and Sundaram 
• Financial Management – Prasanna Chandra 
• Economic Growth and Development – Mayer and Baldwin 

Economics 

• Indian Economy: Mishra Puri. (Latest Edition) 
• Growth And Development: Devraj Ray 
• Sociology: C.N. Shankar Rao 
• Indian Economy: Uma Kapila (Series of Books) 

Conclusion 

The syllabus for Phase 2 is quite vast. It would be beneficial if you start your preparation for phase 2 even before the Phase 1 exam. The gap between the two won’t be much.  

Still, have some doubts? Let us know in the comment section below.  

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