The Finance & Management Section is one of the two difficulty-oriented papers in RBI Grade B Mains. The RBI evaluates the candidate’s information inside the area of finance and management through this phase. Hence, it’s miles a chunk on the tricky side for the applicants who’re from non-finance and non-management backgrounds. However, the brighter facet is the reality that the subjects blanketed within the syllabus aren’t extraordinarily deep into the concern. But an exhaustive coverage over the foundational degree on all of the topics is a ought to for scoring high on this problem.

This article covers the answers to all of the key areas regarding the Finance and Management Section For RBI Grade B Phase 2. Let’s get started out:

What are the topics to cowl in the Finance & Management (FM) section for RBI Grade B Mains Exam?

The topics included within the FM segment for RBI Grade B Mains Exam are widely divided into Finance and Management.


Financial System

  • Regulators of Banks & Financial Institutions
  • Functions of RBI, the behavior of financial coverage, the Bankingsystem of India, Financial Institutions (SIDBI, NABARD, EXIM, NHB)

Financial Markets

  • Primary & Secondary markets (the Forex market, Money, Bond, Equity), Functions, Instruments, Recent developments.

General Topics

  • Risk Management inside the Banking region
  • Basics of Derivatives: Forward, Futures, and Swap
  • Changing Landscape of Banking sector
  • Recent traits inside the Financial area, Portfolio investment,Public region reforms, Disinvestments
  • Financial Inclusion – Use of technology
  • Alternate source of finance, personal and social fee-gain,Public-Private partnership
  • Corporate Governance in the Banking area, the position ofe-governance in addressing the problems of corruption & inefficiency in thegovernment zone
  • The Union price range – Direct and oblique taxes; Non-tax sources ofRevenue, GST, thirteenth Finance Commission and GST, Finance Commission, Fiscalpolicy, Fiscal obligation, and finances control act
  • Inflation: Definition, developments, estimates, consequences, andremedies: WPI, CPI – additives of trends



  • Nature & Scope
  • Processes (Planning, Organizing, Staffing, Directing, Controlling)
  • Role of a Manager in an company


  • Tasks of a leader
  • Styles & theories
  • Successful vs Effective chief
  • Human Resource Development:
  • Concepts & desires of HRD
  • Performance appraisal – Potential appraisal & development –Feedback & Performance counseling – Career planning – Training &improvement – Rewards – Employee welfare.


  • Theories
  • Morale & Incentive
  • How managers motivate
  • Morale idea
  • Factors influencing morale
  • Role of incentives in constructing up morale


  • Steps inside the verbal exchange process
  • Communication channels
  • Communication kinds: Oral vs Written; Verbal vs Non-verbal;Upward, downward & lateral
  • Role of IT
  • Barriers to verbal exchange

Corporate Governance

  • Mechanisms
  • Factors affecting corporate governance

Which are the fine books for the Finance & Management (FM) phase for RBI Grade B Phase 2 Exam?

The following books may be cited cowl this subject matter exhaustively:

  • An introduction to Economics – A W Stonier and DC 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

What are a few crucial resources that can be referred for the FM phase for RBI Grade B Exam?

In addition to the above booklist, some extra resources that be referred for the coaching of FM Section for RBI Grade B Exam are:

  • RBI Circulars
  • Editorial Section of The Economic Times
  • FAQ section of crucial bank websites specifically SIDBI, NABARD, RBI,EXIM
  • Daily Current Affairs Analysis
  • NCERT Business Studies (Class eleventh and 12th)
  • IGNOU BBA and MBA Notes – Relevant subjects related to syllabus

What are the query sorts to put together for FM Section For RBI Grade B Exam?

The paper of the Finance & Management in RBI Grade B Mains Exam will encompass sixty five questions sporting 100 marks. The period of the paper is ninety mins. It is an objective kind paper, in which every question could have one accurate solution. The smash-up of FM paper in RBI Grade B Mains is given underneath:

Particulars Number of Questions Total Marks 2-mark questions 35 70 1-mark questions 30 30 Total sixty five 100

Following is an example of a query that can be requested in FM paper:

Q. Which of those strategies is used to assess an employee in my view?

A. Ranking

B. Paired Comparision

C. Forced Distribution

D. Graphic Rating Scale

Answer: D: Graphic Rating Scale

Preparation Strategy For FM Section for RBI Grade B Exam

FM phase is one of the mostimportant sections for RBI Grade B Exam. You want to cover it exhaustively toget a high rating. Scoring in Phase II is extremely essential because it determines thefinal rank. The aspirants who’re from non-finance or non-management backgroundcan comply with those steps to grasp their principles:

Step 1: If you’re from a non-finance background then, the key to masterthis paper is to begin making ready early. Give as a minimum three-4 months for thepreparation of this phase. First and most important, make a proper time table andensure you comply with it very well. At this time, glace through preceding yearquestion papers to get an idea of the form of questions requested.

Step 2: Make sure you have got your basics clear. Even if you’re a managementstudent, ensure to sweep your ideas nicely. You can do so by means of referring toNCERTs and IGNOU notes.

Step 3: Start out by way of reading primary books on Management and Finance. Thebest can be Principles of Management by means of L.M. Prasad and Financial Management by Prasanna Chandra.

Step four: Read extra sources to supplement your information. Itwill also assist you in gaining a better knowledge of those topics. Also, itwill assist you in preparing for the interview simultaneously. Go through editorialsand banking-centric contemporary affairs analysis to get entire insurance of thissection.

Step five: Practice plenty and masses of MCQ, start with solving previousyear questions. Then solve mock tests, seem for weekly or month-to-month mock teststo determine your practise and additionally to understand where you stand among your peers.Reflect on where you’re going wrong to finetune your way forward!

Want to understand the preparationstrategy for Economic& Social Issues Section? Checkit out right here!

With slightly five-6 months away from the RBI Grade BMains Exam, that is the maximum vital time if you want to kickstart yourpreparation. Career Launcher brings to you distinctive guides which can be simply going to take you towards your aspirations. You canget in contact with our path counselors for further details regarding ourdeliverables.