What is Banking Awareness in bank exams?

Banking Awareness is a section in bank recruitment exams that tests candidates' knowledge about the banking sector, including its history, functioning, and important terms and concepts.

Why is Banking Awareness important for bank exams?

Banking Awareness is essential for bank exams because it helps evaluate a candidate's understanding of the banking industry, which is crucial for providing excellent customer service and making informed financial decisions.

How can candidates prepare for the Banking Awareness section?

Candidates can prepare for the Banking Awareness section by studying topics related to banking history, banking institutions, functions of banks, important banking terms, and recent developments in the banking sector.

Banking Awareness 2023 for All Bank Exams in India

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Banking Awareness for All Bank Exams in India

Banking Awareness is one of the most important topics in all Banks Exams conducted in India. Every year many candidates appear for the various bank exams conducted in India like the IBPS RRB Exam, IBPS PO, IBPS Clerk, SBI PO, SBI Clerk, IDBI Bank Exams, and many others. While preparing for these exams, candidates need to prepare a topic called “Banking Awareness” which assesses candidates’ knowledge about banks and the banking industry. If candidates study this section well and understand the concepts, they can score well in their exams. In this article, we have provided all the information about Banking Awareness for the year 2023, which is relevant for exams like IBPS, RBI, SBI, and others.

Why is Banking Awareness Important?

Banking Awareness is an important part of bank exams, which test how much candidates know about the banking sector. It helps banks find people who can handle banking questions and situations well. Understanding banking is also crucial for bankers to serve customers better, make good financial decisions, and keep the banking system stable. Also, the Banking Awareness section is usually easier to score in compared to other parts of the exam. Candidates who know about banking can do well in this section. Unlike other sections that may have difficult math problems, Banking Awareness questions are more about knowing facts. This section offers a chance to do well without needing complex calculations, making it important for those who want to excel in bank exams.

Banking Awareness Syllabus

The topics included in the Banking Awareness Syllabus for the various bank exams like IBPS Clerk, SBI Clerk, SBI PO, IBPS PO, and other exams have been listed in the table below. Candidates can mark these topics and make sure that these topics are covered by them while preparing for the various exams to get a Bank Job. Check the Banking Awareness Syllabus topics here.

Topic
Banking History and all the first in Banking	First recorded banking activity
RBI Structure and Functions	Established in 1935
Types of Bank Accounts in India	Savings Account
Non-Performing Assets (NPA)	Introduced in the 1990s
SARFAESI Act	Enacted in 2002
Deposit Insurance and Credit Guarantee Corporation	Formed in 1962
Accounts of NRI/PIO	NRI accounts were introduced in the 1970s
Codes used in the Banking Sector Part 1	IFSC (Indian Financial System Code)
Codes used in the Banking Sector Part 2	MICR (Magnetic Ink Character Recognition)
Transfer System in India	NEFT (National Electronic Funds Transfer)
ATM in India	The first ATM was installed in 1987
Types of Cards	Credit Card
Risks in Banking Sector	Credit Risk
Role of Banking Ombudsman in the Banking Sector	Introduced in 1995
Basel III Accord	Implemented in 2013
Financial Markets in India	Established in the 19th century
Negotiable Instruments (NI)	Cheques
Government Securities Market in India	Government Bonds
Inflation-Indexed Bonds (IIBs)	Introduced in 2013
Non-Banking Financial Company (NBFC)	Started in the 1960s
Foreign Investment in India	FDI (Foreign Direct Investment)
Remittances	MTSS and RDA
Small Banks in India	First small bank licensed in 1997
Different Types of Money Transfers in India	IMPS (Immediate Payment Service)
Financial Inclusions	Jan Dhan Yojana
Government Schemes related to Banking Sector	PMJDY (Pradhan Mantri Jan Dhan Yojana)
Financial Institutions and Regulators in India	RBI, SEBI, IRDAI, PFRDA, etc.
External Commercial Borrowings (ECB) and Trade Credit	Allowed in 1991
Rupee Denominated Bonds	Introduced in 2013
Types of Money and Measures of Money Supply	M0, M1, M2, M3, M4
Currency Circulation and Management in India	RBI regulates currency supply
Lending Rates	Repo Rate, Reverse Repo Rate
Nationalization of Banks in India	Happened in 1969 and 1980
Monetary Policy	Tools to control the money supply
Ratings of Banks	CRISIL, ICRA, CARE, etc.
Marginal Cost of Funds based Lending Rate (MCLR)	Introduced in 2016
Banking News of April	Recent developments in April
Banking Related Schemes	PMMY, PMAY, etc.

Types of Banks in India

In India, there are different kinds of banks that serve the needs of people, businesses, and the whole economy. These banks play a crucial role in our financial system, offering important services and helping the country’s economic growth. So, the different types of banks in India which form a strong foundation for our financial system, ensuring that people have access to banking services and helping our country’s economy grow and prosper have been listed in the table below.

Type	Description
1. Nationalised Banks	Banks that were previously private were later taken over by the government and converted into public sector banks.
2. Central Bank	The Reserve Bank of India (RBI) serves as the central monetary authority and regulator of the banking system.
3. Public Sector Banks	Banks where the majority of the stake is owned by the government. They play a crucial role in the nation’s economic development.
4. Private Sector Banks	Banks which are owned and operated by private entities and are not under government control.
5. Export Credit Guarantee Corporation of India Ltd.	A government-owned financial institution that provides export credit insurance facilities to Indian exporters.
6. Commercial Banks	Banks that offer various financial services to individuals, businesses, and organizations.
7. Exim Bank of India	The Export-Import Bank of India was set up to facilitate international trade and boost exports from India.
8. Co-operative Banks	Banks that are owned and operated by cooperative societies or groups provide banking services.
9. Payment Banks	Banks that offer payment services and remittance facilities but do not engage in lending activities.
10. Small Finance Banks	Banks are primarily set up to provide financial services to small and underprivileged sectors of society.
11. Regional Rural Banks	Banks that cater to the banking needs of rural areas are jointly owned by the central government, state governments, and sponsor banks.

General Awareness For Bank Exams

Banking Awareness is an important topic covered in various competitive exams and interviews for banking jobs. General Awareness related to banking is given significant importance in various bank exams in India. It involves having a solid understanding of both national and international static aspects. However, candidates must also stay updated on current events worldwide and the ever-changing trends in the banking industry. Below, we have compiled some essential topics relevant to the General Awareness section of banking exams.