What is the Finance and Management Syllabus for RBI Grade B Exam?

The Finance and Management paper of the RBI Grade B exam is an important part of the Phase 2 exam. This is one of the three papers designed to test candidates’ expertise in financial affairs and governance. Therefore, they need to be fully informed about all the topics and sub-topics that are part of the syllabus to ensure they tackle all types of questions and boost their overall score in the Phase 2 exam. In this blog, we’ll provide insight into the topics covered in the exam and delve into what are the most or least important topics.

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Complete Finance and Management Syllabus for RBI Grade B Exam

Often, most of the candidates who are preparing for FM search online for the important topics that will come in the exam. And they find a lot of blogs. Many blogs discuss which topics are the most important, which are less important, and which are the least important. While the fact is that in this part of the exam, just like the entire exam syllabus, everything is important. There is nothing that is not important. Therefore, you must cover all the topics thoroughly.

Here are all the topics and sub-topics that you need to prepare to perform well in the upcoming exam:

1. Financial Markets

The modern economic framework depends on financial markets to move funds between investors, institutions, and government sectors. Financial management demands an understanding of financial market operational principles and present-day developments coupled with knowledge of the market structure.

• Primary and Secondary Markets (Forex, Money, Bond, Equity, etc.), functions, instruments, and recent developments.
• Financial Risk Management
• Global financial markets and International Banking – broad trends and latest developments
• Inflation: Definition, trends, estimates, consequences, and remedies (control): WPI- CPI – components and trends; striking a balance between inflation and growth through monetary and fiscal policies.

2. Financial System

All financial resources in a nation rely on the basic management structure provided by the financial system. An understanding of worldwide financial institutions alongside their operation practices, inside India, enables the creation of economic stability and effective financial management.

• Functions of the Reserve Bank of India
• Banking System in India – Structure and Developments, Financial Institutions – SIDBI, EXIM Bank, NABARD, NHB, NaBFID, etc.
• Recent Developments in the Global Financial System and its Impact on the Indian Financial System
• Role of Information Technology in Banking and Finance
• Non-Banking System
• Developments in Digital Payments

3. Management

Financial operation and organizational performance require appropriate management principles to function effectively. Understandable insight into leadership groups along with organizational behaviors and corporate governance principles comes from mastering management scientific concepts along with practical knowledge.

• Fundamentals of Management & Organizational Behaviour: Introduction to management; Evolution of management thought: Scientific, Administrative, Human Relations, and Systems approach to management; Management functions and Managerial roles; Nudge theory
• Leadership: Concept, Theories (Trait, Behavioural, Contingency, Charismatic, Transactional and Transformational Leadership)
• Motivation: Concept, importance, Content theories (Maslow’s need theory, Alderfer’s ERG theory, McClelland’s theory of needs, Herzberg’s two-factor theory) & Process theories (Adams equity theory, Vroom’s expectancy theory).
• Organizational Change: Concept, Kurt Lewin Theory of Change; Organizational Development (OD): Organisational Change, Strategies for Change, Theories of Planned Change (Lewin’s change model, Action research model, Positive model).
• Ethics at the Workplace and Corporate Governance: Theories of ethics: Utilitarianism, Rights and duties, Justice and fairness, virtue ethics, etc.

4. General Topics

Though these topics are non-core subjects, they act as necessary foundations that a complete understanding of financial management theory requires. People need vital information from corporate governance practices along with basic accounting principles to make everyday decisions while performing financial assessments/analysis.

• Corporate Governance in the Banking Sector
• Alternate source of finance, private and social cost-benefit, Public-Private Partnership
• The Union Budget – Concepts, approach, and broad trends
• Basics of Accounting and Financial Statements – Balance Sheet, Profit and Loss, Cash Flow Statements, Ratio Analysis (such as Debt to Equity, Debtor Days, Creditor Days, Inventory Turnover, Return on Assets, Return on Equity, etc.)

5. Other Important Topics

These subjects improve communication skills as well as financial inclusion understanding despite their indirect connection with financial management practice.

• 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.
• Financial Inclusion

Also, know why RBI Grade B Phase 1 Exam: The Silent Eliminator of 99% Aspirants

How to Smartly Cover All the Topics Quickly?

Do you want to smartly and quickly prepare all the topics of FM? Then for this, you will need to adopt the most effective and practical tips. For example, give more attention to the main subjects. Choose preparations that are fewer but more effective. Create an excellent study plan. Practice questions from previous years’ papers. Test yourself through the best mock tests, and make every effort to bring improvement within yourself.

How? Let’s quickly take a look at the practical aspects of all these points.

1. Give more attention and effort to main subjects: Spend more time on the topics in which you are weak. These can be topics like Financial Markets, Financial Systems, or Management. Remember, it cannot be said in this section that some are more important than others. Because every topic is important. And this is what makes the exam difficult. However, the easiest way to make preparation easier is to give more attention to the areas in which you are weak and practice them more. But do not ignore any topic.
2. Go for Concise but Effective Study Materials: Choose study materials that are concise and do not contain unnecessary details, but this does not mean that you should only pick superficial resources.
3. Create a Timetable that Best Suits Your Study Style: To maximize your study time, set goals that you can really achieve. That is to say, invest enough time in each subject so that you make daily progress. Stick to it every day and stay away from distractions.
4. Practice with Mock Tests and Previous Papers: Test yourself with past years’ papers and mock tests, and make every effort to improve. Regularly take mock tests and improve your speed and time management skills.
5. Make Good Use of Notes: Write important formulas, definitions, and key concepts in a small notebook or on flashcards so that during revision, you can quickly recall them and save time.
6. Understand the Concepts Well, Don’t Just Memorize: Understand the principles and concepts of all topics well; do not just cram them. This will increase your retention power, and you will easily recall everything during the exam.
7. Daily Revision is Necessary: Dedicate a portion of your daily study time to revision. Revise whatever you learned the previous day and test your knowledge through mock tests.

Also, go through RBI Grade B ESI Preparation Strategy

Time to Take Action!

As you might have gathered a clear understanding of all the topics that make up the Finance and Marketing syllabus, you should start your preparation right away without waiting for the official notification. It will come, but it won’t make much of a difference to your preparation. The syllabus, as expected, will likely remain the same. And even if there are any changes, you can adjust your preparation accordingly. But, if you start preparing now, by the time the notification arrives, you will have already covered many topics. And in the race for competition, you’ll already be ahead of those whose eyes will open only with the notification. So, hurry up! Take a free mock test to know where your preparation level stands, and start moving forward accordingly. You can also opt for the course mentioned above. It will guide you in a much better way.

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