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
Bachelors degree/ Second Class Masters degree etc.)
The selection is usually through Written
Examinations and Interview. Written Examination isconducted in two
phasesObjective (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 sections1) 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 RBIs 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

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

This stage consists of three papers:

Paper I English
Paper II Economic and Social Issues and
Paper III Finance and Management.
Each of these papers is of 3 hours duration carrying 100 marks. RBI provides
an indicative syllabus with the clarification that it is by no means exhaustive.
Thus related topics even though not specifically mentioned should be part of
the preparation.
Syllabus for Phase II:
Paper I English
Essay, Prcis writing, Comprehension, Business/Office Correspondence.
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. 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, Export-Import Policy International
Economic Institutions IMF and World Bank WTO Regional Economic Cooperation. 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, Health and
Education.
Paper III Finance and Management:
Finance : The Union Budget Direct and Indirect taxes; Non-tax sources of
revenue; Outlays; New Measures; Financial Sector Reforms; Capital Market,
Money Market and Foreign Exchange Market; Stock Exchanges and their
Regulation; Capital Market Intermediaries and their Regulation; Role of SEBI;
Functions of the Money Market; Growth and Operation of the Money Market;
The Foreign Exchange Market; From FERA to FEMA; Exchange Rate
Management; Exchange Risk Management; Role of Banks and Financial

Institutions in Economic Development; Regulation of Banks and Financial

Institutions; Disinvestment in Public Sector Units.
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 Counseling 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.
Importance of Good Performance in Phase II for Final Selection
If you want a career with RBI, you have to do very well in this stage. 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, then you will
require an exceptional performance in interview and lot of luck to make it to
final list of selected candidates. The interview is just for 50 marks while the
written test is for 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. Candidates with very good scores in written and very poor
performance in interview have made it to the final selection list but the
reversegreat scores in interview and poor marks in written has often lead
to heartbreak, failure and anguish. 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, II & III taken together in phase
II written examination for shortlisting the candidates for interview
(out of total 300 marks).

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. Of vacancies notified under each category.
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, a useful platform to
share information and interact with fellow aspirants. There is no short cut for
this stage and with the exception of Paper I (English), it requires some effort
and focused preparation. 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.
Ultimately, coherence in presentation and lucidity of the language of the
answer matters a lot, when there is not much to distinguish between
answers of candidates.
For Paper I: No special preparation required.
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.
1. Dutt and Sundarams Indian Economy (latest edition)
2. Uma Kapilas Indian Economic development since Independence (latest
edition)
3. Last 2-3 Years Economic Survey, Government of India

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

This portion initially disheartens some of non-management background

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

(i) Pay Scale:

Selected Candidates will draw a starting basic pay of Rs.21,000/- p.m. in the
scale of Rs.21000-1000-30000-EB-1000-32000-1100-36400 applicable to
Officers in Grade B and they will also be eligible for Dearness Allowance,
Local allowance, House Rent Allowance, Family Allowance as per rules in
force from time to time. At present, initial monthly Gross emoluments to
direct recruit Grade B Officers are approximately Rs.38,853/-.
(ii) Perquisites:
Banks accommodation subject to availability, reimbursement of expenses
for maintenance of vehicle for official purpose, newspaper, telephone
charges, book grant, allowance for furnishing of residence, etc. as per
eligibility. Free dispensary facility besides reimbursement of medical
expenses for OPD treatment/hospitalization as per eligibility. Interest free
festival advance, Leave Fare Concession (once in two years for self, spouse
and eligible dependents). Loans and Advances at concessional rates of
interest for Housing, Car, Education, Consumer Articles, Personal Computer,
etc. The posts also carry benefits of Provident Fund, Pension and Gratuity.
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 Rs10.00 lakhs p.a. (approx.) on a cost to the Bank
basis.
NOTE: For candidates possessing very high academic or professional
qualification/ experience of significant value to the Bank, the Bank may, at
its sole discretion, consider granting up to four advance increments. The
Board, at the sole discretion, will consider requests for higher emoluments
on account of higher qualification/special experience of value to the Bank at
the interview stage only. Such information may be furnished in the Bio-data
form in the appropriate column. The number of maximum increments will be
4. The Board/Bank will not entertain any request received after the
interview.