RBI GRADE-B OFFICER


RBI Grade B Officer Eligibility

RBI Grade B Officers 2016 Eligibility:-

Educational Qualification:-
A Minimum of 60% marks (50% in case of SC/ST/PWD) or equivalent in Bachelor’s Degree as well as in 12th and 10th standard examinations.

Age Criteria and Age Relaxation in upper age limit
(i) The present age criteria of “Between 21 to 30 years” will be retained.

(ii) For M. Phil and Ph. D candidates the upper age limit will be 32 and 34 years, respectively.

(iii) As per extant practice age relaxation will be available to experienced candidates viz. candidates having experience as an officer in Commercial Bank/ Financial Institution in Public Sector as also candidates with prior experience in Reserve Bank of India, to the extent of number of years of such experience subject to a maximum of three years. For such candidates, upper age limit should not exceed 33 years including experience. For experience, probationary period will not be reckoned.

(iv)There are relaxations in upper age limit as per statutory requirements and for the staff.


As per existing practice cumulative age relaxation will not be available in combination with any items mentioned at (ii) (iii) & (iv).

Number of attempts:
The maximum permissible number of attempts (which were applicable for candidates belonging to Unreserved/General Category) has been increased from 4 t

APPLICATION FEE:- SC/ST/PWD:- Rs.100/-
GEN / OBC - Rs.850/-
STAFF – Nil

RBI Officer Grade B Exam Pattern

General features of the RBI Officer Grade B Exam Pattern 2016
  • The examination will be conducted in the online Format.
  • While the Phase I examination will be objective in nature, the Phase II of the examination will have some descriptive questions for which the candidates will need to type answers using the key board.
  • There will be negative marking in the objective Paper which will be equal to ¼ of the marks allotted for every correct response. However, there won’t be any deduction for a question not attempted.

  • RBI Grade B Exam Pattern 2016 for Phase I
    Some of the features of this Phase of selection are as follows:
  • This will be a thoroughly conducted objective examination for which the candidates will have to mark the answer using the mouse. No use of key board is allowed.
  • For every question 1 mark will be allotted and for every wrong response ¼ of the marks will get deducted.
  • There will be a total of 200 questions carrying 1 mark each which means the total marks allotted in the exam will be 200 marks.
  • The candidates will get 120 minutes or 2 hours to solve all the questions.
  • There will be 4 sections in the examination and the candidates can start from any section.

RBI Grade B Exam Pattern 2016 for Phase I

Following is the RBI Grade B Exam Pattern 2016 for Phase I
Name of the section Number of questions asked Marks allotted for the section
General Awareness 80 80
English Language 30 30
Quantitative Aptitude 30 30
Reasoning 60 60
Total 200 questions 200 Marks

RBI Grade B Exam Pattern 2016 for Phase II

RBI has recently made changes to the examination pattern by adding a phase II examination for overall selection. The candidates who qualify in the Phase I examination will take the Phase II examination. Some of the features of this Phase II are as follows:


  • This phase will have both descriptive and objective questions. The candidates will have to write answer using key board for the descriptive paper. The English Paper will be descriptive in nature.
  • This phase will consist of three papers out of which two will be compulsory and one will be optional.
  • The compulsory papers are Paper 1 – ‘English Language’ and Paper 2 – ‘Economic and Social Issues’.
  • The optional paper will be Paper 3 which will have options in the following subjects:

  • 1. Finance and Management

    2. Economics

    3. Statistics
  • There will be a total of 3 sections in the examination of 100 marks each. The candidates will get 270 minutes or 4 hours 30 minutes to solve all the questions.
  • There is no negative marking in this section.

Complete RBI Grade B Exam Pattern 2016 for Phase II is as follows
Name of the Paper Type of the Paper Time allotted for each Paper Marks allotted for each Paper
Paper 1 Economic and Social Issues Objective Type questions 90 minutes 100 marks
Paper 2 English (Writing Skills0 descriptive 90 minutes 100 marks
Paper 3 Optional subject Objective Type questions 90 minutes 100 marks
Total 270 minutes 300 marks

Phase 3: Interview
The candidates will be called for a personal interview on the basis of their result in the Phase II of the examination. The RBI will decide the minimum marks required for the eligibility of candidates for the Interview Test.
Based on the Phase II result and the Interview, the final merit list will be drawn and the appointment will be made accordingly.

RBI Officer Grade B Exam Syllabus

Paper-I - 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 – Privatization – 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 Co-operation. Social Structure in India – Multiculturalism – Demographic Trends – Urbanization and Migration – Gender Issues – Social Justice : Positive Discrimination in favor of the under privileged – Social Movements – Indian Political System – Human Development – Social Sectors in India, Health and Education.


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

News Papers:
  • Economic Times
  • Hindu
  • Business Standard

Weekly/Monthly Magazines/Bulletins /Reports:
  • Economic and Political Weekly
  • Southern Economist
  • Yojana
  • Business India
  • RBI Bulletins

Reports:
  • World Development Report
  • Economic Survey of India

Paper-II -English (Writing Skills):
The paper on English shall be framed in a manner to assess the writing skills including expression and understanding of the topic.

Paper-III -Finance and Management/ Economics/Statistics:
(A) Finance and Management :
(i) Finance
(a) Financial System
Regulators of Banks and Financial Institutions
Reserve Bank of India- functions and conduct of monetary policy, Banking
System in India, Financial Institutions – SIDBI, EXIM, NABARD, NHB, etc.

(b) Financial Markets
Primary and Secondary Markets (Forex, Money, Bond, Equity,etc.), functions, instruments, recent developments.


(c) General Topics
  • Risk Management in Banking Sector
  • Basics of Derivatives: Forward, Futures and Swap
  • Changing Landscape of Banking sector
  • Recent Developments in the Financial Sector, Portfolio Investment, Public Sector Reforms, Disinvestments
  • Financial Inclusion- use of technology
  • Alternate source of finance, private and social cost-benefit, Public-Private Partnership
  • Corporate Governance in Banking Sector, role of e-governance in addressing the issues of corruption and inefficiency in the government sector.

The Union Budget – Direct and Indirect taxes; Non-tax sources of Revenue, GST, Thirteenth Finance Commission and GST, Finance Commission, Fiscal Policy, Fiscal Responsibility and Budget Management Act (FRBM),Inflation: Definition, trends, estimates, consequences, and remedies (control): WPI, CPI - components and trends.

Suggested reference material:
  • An introduction to Economics – A W Stonier and D C Hauge
  • Monetary Theory and Public Policy – Kenneth Kurihara
  • Indian Economy – Mishra and Puri
  • Indian Economy – R. Dutt and KPM Sundaram
  • Economic Growth and Development – Mayer and Baldwin
  • Major economic newspapers and Economic and Political Weekly
  • Public Finance – K K Andley and Sundaram
  • Financial Management – Prasanna Chandra

(II) 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 Counselling – 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.

The questions on this section will be basic in nature.
(B) Economics
(a) Microeconomics
Consumers behaviour and firms; value of resources like land, labour and capital Markets-monopoly, perfect and imperfect competition
General Equilibrium of price and activity, economic welfare and case for regulatory / policy interventions


(b) Macroeconomics
Measuring national income and its components; basic macro identities and idea of macro-balance; Goods and Financial Market Equilibrium (IS-LM Framework)
Major macro-economic school of thoughts; Classical, Keynesian and Monetarist
Consumption and Investment demand; demand management policies and their effectiveness
Money demand and supply; monetary and fiscal policies

(c) International Economics
Benefit of International trade; comparative and absolute advantage; effect of International trade on resources allocation and factor price equalisation; non-conventional trade barriers, optimum currency areas and effect of customs union
International finance and exchange rates issues in an open economy, benefits and costs of an inter-connected financial markets; evolution of international financial architecture

(d) Public Economics
Public Goods, instruments of financing, government tax and non-tax revenue
Direct and Indirect taxes, efficiency costs of commodity taxes, income taxation, labour supply and savings, corporate taxation and corporate behaviour
Government expenditure policy-various components, deficit financing and its impact on the economy, government debt and crowding out of private capital

(e) India’s Economy and Development Issues
India’s experimentations with planned development models and the outcomes, structural issues-savings and investment, demography, urbanization, productivity, etc., issues with poverty, inequality and employment
Agriculture- policy and developments, manufacturing competitiveness; what is holding India back, role of public sector enterprises in the key economic sectors, India’s resilient service sector; trade, tourism, communication, ITES, etc.
Financial sector regulation and reforms-banking, insurance and capital market, fiscal policy and the changing priorities of government, emergence of monetary policy and its new role

Suggested reference material:
  • Microeconomics, Student Value Edition (8th edition) by Robert Pindyck, Daniel Rubinfeld
  • Intermediate Microeconomics : A modern Approach(8th edition) by Hal R. Varian
  • Macroeconomics(2011) by Rudiger Dornbusch, Stanley Fisher, Richard Starz
  • Macroeconomics by N. Gregory Mankiw, (Seventh Edition),
  • International Economics (2013) by Domimick Salvatore
  • International Economics(2011) by Paul Krugman and Maurics Obstfeld
  • International Finance and Open Economy Macroeconomics (1993) by Francisco L.Rivera- Batiz, Luis A.Rivera- Batiz
  • Public Finance in Theory and Practice(1989) by Richard Abel Musgrave and Peggy B.Musgrave
  • The Concise Oxford Companion to Economics in India, Edited by Kaushik Basu & Annemie Maertens
  • Indian Economy since Independence (2014) edited by Uma Kapila
  • Indian Economy : Performance and Policies(2015) edited by Uma Kapila
  • India Development Report (2015) edited by S. Mahendra Dev

(C) Statistics:
(1) Probability: Random variables, Theorems of probability, Conditional probability, Independent events, Bayes' theorem and its application, expectation, moments, distribution functions, Binomial, Poisson, Geometric, Exponential, Negative binomial, Hyper geometric, Cauchy, Laplace, Logistic, Pareto, Log-normal, Beta and Gamma distributions, Weibull, Uniform, Bivariate normal distribution and truncated distributions, Markov’s inequality, Chebyshev’s inequality, Cauchy-Schwarz inequality, Laws of large numbers, Central limit theorems and applications.

(2) Statistical Methods: Population and sample, Measures of central tendencies Parameter and Statistic, Correlation and Regression, intra-class correlation, multiple and partial correlations, Spearman's coefficient of rank correlation, Z, chi-square, t and F statistics and their properties and applications, Large sample distributions, Variance stabilizing transformations, sin inverse, square root, logarithmic and z transformation.

(3)Linear Models: General Linear models, BLUE, method of least squares, Gauss-Markoff theorem, estimation of error variance, Simple and Multiple linear regression models, Important assumptions and treatments in case of assumption’s violation, Regression diagnostics, Analysis of variance in one, two and three-way classifications, Analysis of Covariance in one and two-way classifications.

(4)Statistical Inference: Properties of estimators, MVUE, Rao-Blackwell and Lehmann-Scheffe theorems, Cramer-Rao inequality, methods of estimation, properties of maximum likelihood and other estimators, confidence intervals. Simple and composite hypotheses, Type I and Type II errors, size and power of a test, Most Powerful and Uniformly Most Powerful tests, Neyman-Pearson lemma, Likelihood Ratio test and its properties and applications. SPRT, OC and ASN functions, Tests of goodness of fit. Parametric vs. Non-parametric Test, Frequently-used non-parametric inferential statistical methods.
(5)Multivariate Analysis: Bivariate and Multivariate normal distribution, marginal and conditional distribution, Estimation of mean vector and covariance matrix, Asymptotic properties of estimators, Sampling distribution of and S, Mahalanobis D2 and Hotelling's T2and its applications.

(6)Optimization Techniques and Statistical Quality Control: Linear Programming, Transportation Problem, Assignment Problem, Basics of Simulation, Quality control, Process Control and Product Control, control charts, Acceptance Sampling plan, single and double sampling plans (ASN, OC, ATI, LTPD, AOQL).

(7) Sample Surveys and Design of Experiments: Simple and Stratified random sampling, ratio and regression methods of estimation, Double sampling, Systematic, Cluster, two stage and PPS sampling. Sampling and Non-sampling errors. Principles of Design of Experiments, Completely Randomized Design, Randomized Block Design, Latin Square Design, missing plot technique, 22 and 23 factorial designs, Split-Plot Design and Balanced Incomplete Block Design, Fractional factorial experiments

(8)Applied Economic Statistics: Time Series vs. cross sectional data, Multiplicative and additive models, Auto-correlation, Partial autocorrelation, Smoothing techniques, Seasonal and cyclical adjustment. Price and Quantity Index numbers, Types of index numbers and their properties. Chain and Fixed base index numbers, Cost of Living Index numbers, Wholesale Price Index, Consumer Price Index, Index of Industrial Production, Gini’s coefficient, Lorenz curves, Application of Pareto and Lognormal as income distributions.

(9) Vital Statistics: Sources of vital statistics compilation, Errors in census and registration data, Measurement of population, rate and ratio of vital events, Stationary and Stable population, Life Tables, Measures of Fertility, Mortality and Reproduction, Crude rates of natural growth, Pearl’s Vital Index.

(10) Numerical Analysis: Principles of floating point computations and rounding errors, Linear Equations factorization methods, pivoting and scaling, residual error correction method, Iterative methods, Jacobi, Gauss-Seidel methods, Newton and Newton like methods, unconstrained optimization, Lagrange interpolation techniques, Cubic Splines, Error estimates, Polynomials and least squares approximation; Integration by interpolation, adaptive quadratures and Gauss methods.

(11) Basic Computer Applications: Functional organization of computers, algorithms, basic programming concepts, Program testing and debugging, Subprograms and Subroutines, Sorting/searching methods, Database Management Systems, Software Engineering, Basic of Networking, Internet Technologies, Web and HTML, Distributed systems, Programming using C, MINITAB and FORTRAN.

RBI Officer Grade B Selection Procedure

Is the process through which interested and eligible candidates would be selected for the post of Officer (Grade B) in Reserve Bank of India. It tells how a candidate would be finally selected for the recruitment and how the evaluation would be done for the same. Merit list will be drawn for the finally selected candidates that would be posted on the official website of RBI in the form of a PDF file. Read the following article for more information on the RBI Officer Grade B Selection Procedure and the underlying criteria for final recruitment.

Exam will be conducted in 03 Phases that are –
  • Phase-I (Objective Type Written Exam)
  • Phase-II (Descriptive Type Written Exam)
  • Personal Interview

All the candidates who fill the application form successfully will be called for a written examination. This examination, also referred to as Paper 1/Exam 1 is of qualifying nature. It means that marks from this paper would not be considered for the preparation of final merit list. It is merely a screening examination. This examination would be held in online mode and candidates have to mark their answers on computer using mouse. Use of keyboard is prohibited during the examination else the question paper would be locked. Questions would be asked from General Awareness, English, Quantitative Aptitude, and Reasoning. As per the RBI Officer Grade B Selection Procedure, a cutoff score will be employed in the Phase 1.

Candidates have to clear the sectional cutoff as well as the aggregate cutoff for being selected in next round. If the score of the candidate is lower than the cutoff, he shall not be selected in the further round. However, if the score is equal or more than the cutoff, he shall be termed eligible for the next examination i.e. Phase 2. Cutoff in Phase 1 will be set against 200 marks. Questions in the Phase 2 exam would be asked from English, Economic and Social Issues and Finance and Management. The candidates who score enough marks to cross the cutoff barrier in Phase 1 will be called for Phase 2 exam. Duration of this exam is 3 hours and cutoff in this phase would be set against 300 marks.

If the candidate score marks equal to or above the cutoff, he shall be called for the final round of recruitment i.e. personal interview. Once the interviews are over in RBI Officer Grade B Exam Recruitment Procedure, final merit list will be drawn by the RBI. This merit list will be drawn on the basis of marks in personal interview and phase 2. Allotment would be done with priority to the top scorers with more difference from the final cutoff. Those candidates who are called for interview will be reimbursed to and fro actual First Class (Non-AC)/ II AC railway fare by the shortest route from their place. To get the reimbursement, they have to produce the relevant tickets.