Banking Awareness is one of the most important parts of General Awareness/General Studies (GA/GS) for SSC, Banking, and RRB exams. It checks a candidate’s knowledge of the Indian banking system, financial terms, RBI guidelines, and current affairs related to banks. Since banking is closely linked with the economy and government policies, this section helps examiners assess how well candidates stay updated with real-world financial developments.
What Is Banking Awareness in General Awareness/General Studies?
Banking Awareness refers to the understanding of basic and advanced concepts of banking such as RBI, monetary policies, financial markets, schemes, digital banking, and important committees.
It appears in exams because it helps measure a candidate’s practical awareness of the financial system, which is essential for both government and banking job roles.
Skills required to solve Banking Awareness questions include:
- Memorizing facts (RBI Acts, important years, headquarters)
- Logical understanding (monetary policy, banking terms)
- Current affairs tracking (new schemes, mergers, RBI updates)
Why Is Banking Awareness Important in Competitive Exams?
Banking Awareness plays a key role in exams as it directly connects with real-world financial knowledge. For bank exams, it is a scoring section as questions are mostly fact-based. For SSC, Bank, Insurance, and RRB exams, only a few but easy-level questions are asked.
| Exam | No. of Questions | Difficulty |
| SSC CGL / CHSL | 1–2 | Easy |
| IBPS PO / SBI PO Mains | 2–3 | Moderate |
| RRB NTPC / Group D | 1 | Easy |
| State PSC / Police | 1–2 | Moderate |
Banking Awareness General Awareness/General Studies Important Topics
Banking Awareness covers static banking knowledge as well as current updates. Candidates should prepare both.
| Term | Details |
| RBI Functions | Monetary policy, regulation, supervision |
| Monetary Policy | Repo, Reverse Repo, CRR, SLR |
| Banking Structure in India | Public, Private, RRBs, Cooperative Banks |
| Financial Inclusion Schemes | PMJDY, PMMY, Mudra Yojana |
| Digital Banking | UPI, IMPS, NEFT, RTGS |
| Basel Norms | Global banking regulations |
| Bank Mergers | Recent public sector bank mergers |
| Priority Sector Lending | Agriculture, MSME, education, etc. |
Quick Memorizing Tips
Some of the quick memorizing tips to complete the banking awareness syllabus are as follows:
| Concept | Details |
| Repo Rate | RBI lends to banks – reduces inflation |
| Reverse Repo | Banks park money with RBI – absorbs liquidity |
| CRR | % of deposits banks keep with RBI |
| SLR | % of deposits kept in govt. securities |
| UPI | Unified digital payment system in India |
| NPA | Non-Performing Asset – loan overdue >90 days |
What Are the Types of Banking Awareness Questions in General Awareness/General Studies?
Banking Awareness questions can be asked in different formats:
- Direct – “What is the current repo rate?”
- Indirect – “Which instrument is used to control inflation?”
- Story based – Situational questions involving RBI actions.
- Mixed-concept – Questions linking economy, current affairs, and banking.
Banking Awareness Easy Tips for General Awareness/General Studies
To save time in exams, candidates can use short mental models:
- Link banking terms with daily life examples (e.g., Repo = RBI lending to banks like banks lend to us).
- Create mnemonics for acts and schemes.
- Revise with monthly banking awareness PDFs to cover current affairs.
- Use timeline charts for RBI governors and major banking events.
Banking Awareness Tricks for SSC CGL and Other Exams
Here are some quick strategies to remember and solve Banking Awareness questions:
- Use flow charts to revise RBI structure and functions.
- Connect terms with real-life banking (ATM, UPI, NEFT, etc.).
- Reverse mapping – start with examples and trace back to concepts.
- Eliminate irrelevant options in MCQs to improve accuracy.
- Revise current affairs every month with banking capsules.
Solved Banking Awareness Questions from 2024–25 Exams
1. SSC CGL 2024 Tier 1 Shift 2 – Memory-Based
Q: Who regulates the NBFCs in India?
Answer: Reserve Bank of India
Explanation: As per RBI Act, NBFCs are under RBI regulation.
2. IBPS PO Mains 2024 – Oliveboard Mock
Q: What does ‘S’ stand for in SLR?
Answer: Statutory
Explanation: SLR = Statutory Liquidity Ratio.
3. RRB NTPC 2024 – Memory-Based
Q: UPI was launched in which year?
Answer: 2016
Explanation: Unified Payments Interface was launched by NPCI in April 2016.
Banking Awareness Concepts for Bank Exams
In IBPS and SBI exams, Banking Awareness questions are often based on coded terms and logical banking scenarios.
Example:
Q: If RBI increases CRR, what will be the effect on liquidity?
Answer: Liquidity decreases because banks have to keep more funds with RBI.
Common Mistakes to Avoid while Solving Banking Awareness Questions
While solving Banking Awareness questions candidates must keep the below mentioned details in mind:
- Confusing Repo and Reverse Repo Remember Repo = RBI lends, Reverse Repo = RBI borrows.
- Ignoring current updates Revise latest RBI policy rates.
- Mixing CRR with SLR CRR is cash, SLR is in securities.
- Skipping international banking terms Basel norms, SWIFT, IMF terms may appear.
- Relying only on static banking Always balance static + current affairs.
FAQs
Questions that describe a situation (e.g., inflation rise) and ask which instrument is used.
Around 2–3 in mains, moderate level.
It is a mix of both static concepts + latest RBI/banking updates.
Make a timeline chart with tenures.
Rarely, but terms like IMF, World Bank, and Basel norms may appear.
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