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Banking Awareness Notes and Topics for Bank Exams 2023: BYJU'S


Banking Related General Awareness PDF 49: A Comprehensive Guide for Bank Exams




If you are preparing for any bank exam in India, you must be aware of the importance of general awareness section. This section tests your knowledge of current affairs, static GK, banking awareness, etc. Among these topics, banking awareness is one of the most crucial ones as it covers a wide range of concepts, facts, terms, policies, etc. related to the banking sector in India and abroad.




banking related general awareness pdf 49



Banking awareness not only helps you score well in the general awareness section but also enhances your understanding of the banking system and its functioning. It also helps you in the interview round where you may be asked questions related to banking and finance.


Therefore, it is essential to have a comprehensive and updated study material for banking awareness. In this article, we present you the banking related general awareness PDF 49, which is a complete guide for bank exams. This PDF covers all the important topics that are asked in the bank exams, such as banking in India, Indian and international finance system, banking and financial awareness, etc.


This PDF is designed in a simple and lucid language, with relevant examples, tables, charts, diagrams, etc. to make your learning easy and interesting. It also contains practice questions and quizzes to test your knowledge and prepare you for the exam. By reading this PDF, you will be able to master the banking awareness section and boost your confidence.


In this article, we will give you an overview of the topics covered in this PDF. You can download the PDF from the link given at the end of the article. So, let's get started.


Banking in India




The first topic in this PDF is banking in India. This topic covers the history, evolution, structure, functions, and features of the banking sector in India. It also covers the various types of banks and banking concepts and terms that are commonly used in the banking industry. Let's see what are the subtopics under this topic.


History of Banking in India




The history of banking in India can be divided into four phases: pre-independence era, post-independence era, nationalization of banks, and liberalization and reforms.



  • The pre-independence era refers to the period before 1947 when India was under British rule. During this period, the first bank in India was established in 1770 by Alexander and Co. It was followed by other banks such as Bank of Hindustan (1770), General Bank of India (1786), Bank of Bengal (1806), Bank of Bombay (1840), Bank of Madras (1843), etc. These banks were mostly owned by Europeans and catered to the needs of the British government and traders.



  • The post-independence era refers to the period after 1947 when India became an independent nation. During this period, the Reserve Bank of India (RBI) was established in 1935 as the central bank of India. It was followed by other banks such as State Bank of India (SBI) in 1955 as the largest public sector bank, Industrial Development Bank of India (IDBI) in 1964 as the first development finance institution, etc. These banks were mainly focused on providing credit to agriculture, industry, trade, etc.



  • The nationalization of banks refers to the period between 1969 and 1980 when 20 major private banks were nationalized by the government of India. The main objective of nationalization was to expand banking services to rural areas, promote social welfare schemes, reduce regional imbalances, etc. The nationalized banks were also given priority sector lending targets to ensure that a certain percentage of their loans went to agriculture, small scale industries, exports, etc.



  • The liberalization and reforms refer to the period since 1991 when India adopted economic reforms and opened up its economy to foreign investment and competition. During this period, many new private sector banks were established such as ICICI Bank, HDFC Bank, Axis Bank, etc. These banks introduced new technologies, products, services, etc. to attract customers and compete with public sector banks. The government also allowed foreign banks to enter India with certain restrictions and regulations.



Banking Institutions in India




The second subtopic under banking in India is banking institutions in India. This subtopic covers the various types of banks that operate in India and their functions and features. The types of banks in India are as follows:



  • Reserve Bank of India (RBI): RBI is the central bank of India that regulates and supervises the monetary and financial system of the country. It is responsible for maintaining price stability, ensuring adequate credit flow, managing foreign exchange reserves, issuing currency notes and coins, etc.



  • State Bank of India (SBI): SBI is the largest public sector bank in India that provides a wide range of banking and financial services to various sectors and segments of the economy. It has over 24000 branches and 59000 ATMs across the country. It also has overseas branches in 36 countries.



- H3: Banking Concepts and Terms - This subtopic covers the various banking concepts and terms that are commonly used in the banking industry. Some of the concepts and terms are as follows: - Types of bank accounts: There are different types of bank accounts that cater to the different needs and preferences of the customers. Some of the common types of bank accounts are savings account, current account, fixed deposit account, recurring deposit account, etc. - Types of deposits and loans: There are different types of deposits and loans that banks offer to their customers. Some of the common types of deposits are demand deposits, time deposits, term deposits, etc. Some of the common types of loans are personal loan, home loan, car loan, education loan, etc. - Types of cards and payment systems: There are different types of cards and payment systems that banks provide to their customers for facilitating transactions. Some of the common types of cards are debit card, credit card, prepaid card, etc. Some of the common types of payment systems are NEFT, RTGS, IMPS, UPI, etc. - Types of interest rates and charges: There are different types of interest rates and charges that banks apply to their deposits and loans. Some of the common types of interest rates are repo rate, reverse repo rate, marginal cost of funds based lending rate (MCLR), base rate, etc. Some of the common types of charges are processing fee, service charge, penalty charge, etc. - Types of banking services and products: There are different types of banking services and products that banks offer to their customers for enhancing their convenience and satisfaction. Some of the common types of banking services and products are internet banking, mobile banking, ATM banking, phone banking, locker facility, insurance facility, mutual fund facility, etc. Indian and International Finance System




The second topic in this PDF is Indian and international finance system. This topic covers the structure, functions, features, and role of the financial system in India and abroad. It also covers the various types of financial markets and institutions in India and abroad. Let's see what are the subtopics under this topic.


Indian Finance System




The Indian finance system consists of two main components: financial market and financial institutions. The financial market is a platform where buyers and sellers of financial assets such as money, securities, derivatives, etc. interact with each other. The financial institutions are intermediaries that facilitate the flow of funds from savers to borrowers.


The financial market in India can be classified into four segments: money market, capital market, forex market, and derivatives market.



  • The money market is a market where short-term funds (up to one year) are borrowed and lent. The main instruments traded in the money market are treasury bills (T-bills), commercial papers (CPs), certificates of deposit (CDs), call money, etc. The main participants in the money market are RBI, banks, financial institutions, corporates, etc.



- debentures, bonds, etc. The main participants in the capital market are companies, investors, stock exchanges, depositories, etc.


  • The forex market is a market where foreign currencies are exchanged. The main instruments traded in the forex market are spot, forward, futures, options, swaps, etc. The main participants in the forex market are RBI, banks, exporters, importers, tourists, etc.



  • The derivatives market is a market where contracts that derive their value from an underlying asset are traded. The main instruments traded in the derivatives market are futures, options, swaps, etc. The main participants in the derivatives market are hedgers, speculators, arbitrageurs, etc.



The financial institutions in India can be classified into four categories: development finance institutions (DFIs), non-banking financial companies (NBFCs), mutual funds (MFs), and insurance companies.



  • The DFIs are specialized institutions that provide long-term finance to various sectors of the economy such as industry, agriculture, infrastructure, etc. Some of the DFIs in India are Industrial Development Bank of India (IDBI), National Bank for Agriculture and Rural Development (NABARD), Small Industries Development Bank of India (SIDBI), etc.



  • The NBFCs are financial intermediaries that provide various types of financial services such as loans, leases, hire purchase, factoring, etc. Some of the NBFCs in India are Bajaj Finance, Mahindra Finance, Muthoot Finance, etc.



  • The MFs are financial intermediaries that pool the savings of investors and invest them in a diversified portfolio of securities. Some of the MFs in India are HDFC Mutual Fund, ICICI Prudential Mutual Fund, SBI Mutual Fund, etc.



  • The insurance companies are financial intermediaries that provide risk coverage to individuals and entities against various contingencies such as death, accident, fire, theft, etc. Some of the insurance companies in India are Life Insurance Corporation of India (LIC), General Insurance Corporation of India (GIC), ICICI Lombard General Insurance Company Ltd., HDFC Life Insurance Company Ltd., etc.



International Finance System




The international finance system consists of two main components: international financial institutions (IFIs) and international financial agreements and organizations. The IFIs are multilateral institutions that provide financial assistance and cooperation to developing and emerging countries for their economic and social development. The international financial agreements and organizations are multilateral arrangements and forums that facilitate international monetary and financial stability and cooperation.


The IFIs can be classified into four categories: World Bank Group (WBG), International Monetary Fund (IMF), Asian Development Bank (ADB), and New Development Bank (NDB) and Asian Infrastructure Investment Bank (AIIB).



- grants, equity, guarantees, etc. to developing and emerging countries for various purposes such as poverty reduction, infrastructure development, human capital development, etc. The five institutions are International Bank for Reconstruction and Development (IBRD), International Development Association (IDA), International Finance Corporation (IFC), Multilateral Investment Guarantee Agency (MIGA), and International Centre for Settlement of Investment Disputes (ICSID).


  • The IMF is an institution that provides short-term financial assistance and policy advice to its member countries to maintain their balance of payments and exchange rate stability. It also monitors and regulates the global financial system and acts as a lender of last resort in times of crisis.



  • The ADB is an institution that provides loans, grants, equity, guarantees, etc. to its member countries in Asia and the Pacific region for various purposes such as economic growth, social development, regional integration, environmental sustainability, etc.



  • The NDB and AIIB are two new institutions that were established in 2015 by the BRICS countries (Brazil, Russia, India, China, and South Africa) and 57 founding members respectively. They aim to provide alternative sources of financing for infrastructure and sustainable development projects in developing and emerging countries.



The international financial agreements and organizations can be classified into four categories: Basel norms and committees, Financial Action Task Force (FATF), Financial Stability Board (FSB), and G20 and BRICS.



  • The Basel norms and committees are a set of international standards and guidelines for banking regulation and supervision. They are issued by the Basel Committee on Banking Supervision (BCBS), which is a forum of central bankers and regulators from 27 countries. The main objectives of the Basel norms are to ensure financial stability, enhance risk management, and promote fair competition among banks.



  • The FATF is an inter-governmental body that sets standards and monitors compliance for combating money laundering, terrorist financing, and other related threats to the integrity of the international financial system. It has 39 members and 9 associate members.



  • The FSB is an international body that monitors and assesses vulnerabilities affecting the global financial system and coordinates the actions of national authorities and international organizations to address them. It has 24 members and 6 regional consultative groups.



  • The G20 and BRICS are two informal groups of major economies that meet regularly to discuss and coordinate their policies on global economic and financial issues. The G20 consists of 19 countries and the European Union. The BRICS consists of Brazil, Russia, India, China, and South Africa.



Banking and Financial Awareness




- and financial sector in India and abroad that are relevant for bank exams. It also covers the current affairs related to banking and finance that are important for bank exams. Let's see what are the subtopics under this topic.


Banking and Financial Acts and Regulations




This subtopic covers the various acts and regulations that govern the banking and financial sector in India and abroad. Some of the important acts and regulations are as follows:



  • RBI Act, 1934: This act provides the legal framework for the establishment, functions, powers, and responsibilities of the RBI as the central bank of India.



  • Banking Regulation Act, 1949: This act provides the legal framework for the regulation and supervision of banking companies in India by the RBI.



  • Banking Companies (Acquisition and Transfer of Undertakings) Acts, 1970 and 1980: These acts provide the legal framework for the nationalization of 14 major private banks in 1969 and 6 more in 1980 by the government of India.



  • Regional Rural Banks Act, 1976: This act provides the legal framework for the establishment, functions, and regulation of regional rural banks (RRBs) in India by the RBI, NABARD, and sponsor banks.



  • National Bank for Agriculture and Rural Development Act, 1981: This act provides the legal framework for the establishment, functions, and regulation of NABARD as the apex development finance institution for agriculture and rural development in India.



  • Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002: This act provides the legal framework for the securitisation and reconstruction of non-performing assets (NPAs) of banks and financial institutions and enforcement of security interest by secured creditors without court intervention.



  • Credit Information Companies (Regulation) Act, 2005: This act provides the legal framework for the regulation and supervision of credit information companies (CICs) in India by the RBI. CICs collect and disseminate credit information of borrowers to lenders.



  • Payment and Settlement Systems Act, 2007: This act provides the legal framework for the regulation and supervision of payment and settlement systems in India by the RBI. Payment and settlement systems facilitate the transfer of funds among participants.



- the Banking Companies (Acquisition and Transfer of Undertakings) Acts, 1970 and 1980 to enable the RBI to issue new bank licenses, increase its regulatory powers, and enhance the governance and capital adequacy of banks.


  • Insolvency and Bankruptcy Code, 2016: This act provides the legal framework for the resolution of insolvency and bankruptcy of corporate persons, partnership firms, and individuals in a time-bound and efficient manner.



  • Payment and Settlement Systems (Amendment) Act, 2015: This act amends the Payment and Settlement Systems Act, 2007 to empower the RBI to regulate and supervise systemically important payment systems in India.



Banking and Financial Reforms and Policies




This subtopic covers the various reforms and policies that have been implemented or proposed by the government and the RBI to improve the performance and efficiency of the banking and financial sector in India and abroad. Some of the important reforms and policies are as follows:



  • Nationalization and denationalization of banks: As mentioned earlier, the government of India nationalized 14 major private banks in 1969 and 6 more in 1980 to expand banking services to rural areas, promote social welfare schemes, reduce regional imbalances, etc. However, in 1993, the government allowed some of the nationalized banks to raise capital from the public through initial public offerings (IPOs), thereby reducing its stake in them. This process is known as denationalization or disinvestment of banks.



  • Narasimham Committee recommendations: The Narasimham Committee was set up by the government in 1991 and 1998 to review the financial system in India and suggest reforms. Some of its major recommendations were to reduce the statutory liquidity ratio (SLR) and cash reserve ratio (CRR) for banks, introduce prudential norms for asset classification and provisioning, adopt capital adequacy norms as per Basel standards, establish an independent board for financial supervision, allow entry of new private and foreign banks, etc.



  • Financial Sector Legislative Reforms Commission (FSLRC): The FSLRC was set up by the government in 2011 to review and rewrite the legal framework for the financial sector in India. It submitted its report in 2013 with various recommendations such as to enact a single Indian Financial Code (IFC) to replace multiple laws governing the financial sector, to create a unified financial regulatory agency (UFRA) to replace multiple regulators such as SEBI, IRDAI, PFRDA, etc., to establish a financial redressal agency (FRA) to address consumer complaints, etc.



  • Insolvency and Bankruptcy Code (IBC): As mentioned earlier, the IBC was enacted by the government in 2016 to provide a time-bound and efficient resolution of insolvency and bankruptcy of corporate persons, partnership firms, and individuals. The IBC has established various institutions such as National Company Law Tribunal (NCLT), Insolvency and Bankruptcy Board of India (IBBI), insolvency professionals (IPs), etc. to implement its provisions.



Goods and Services Tax (GST): GST is a comprehensive indirect tax that subsumes various central and state taxes such as excise duty, service tax, value added tax (VAT), etc. It was implemented by the government in 2017 with an aim to c


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