BoM Generalist Officer (Scale II/III) cheat sheet

Syllogism: 'All A are B' + 'All B are C' → 'All A are C' (valid); 'Some A are B' + 'All B are C' → 'Some A are C' (valid); 'No A is B' + 'All B are C' → 'No A is C' (valid).

Blood relations: draw a family tree with vertical lines for generations and horizontal lines for siblings/spouses; use '+' for male, '–' for female, '=' for spouse.

Direction sense: net displacement = vector sum; use Pythagoras for straight-line distance if turns are 90°; if turns are not 90°, use law of cosines.

Seating arrangement: for circular arrangement with n people, fix one person and arrange remaining (n–1)! ways; if clockwise and anticlockwise are distinct, total = (n–1)!; if not, (n–1)!/2.

Coding-decoding: check letter positions (A=1, B=2, …, Z=26) and their reverses (A=26, B=25, …); common patterns: +1, –1, +2, –2, alternating, or reversal.

Inequalities: 'A > B ≥ C' means A > C and B ≥ C; 'A < B ≤ C' means A < C. Combine only if the same variable appears in both with consistent direction.

Puzzle/test of reasoning: for floor puzzles, make a table of floors vs. persons; for scheduling, use a timeline; for comparison, use a rank-order list.

Data sufficiency: evaluate each statement alone first; if neither alone suffices, combine both; answer choices: (1) alone sufficient, (2) alone sufficient, (3) both together sufficient, (4) each alone sufficient, (5) insufficient.

Percentage change: new value = old × (1 ± r/100); successive changes: net = a + b + ab/100 (with signs).

Profit/loss: profit% = (SP – CP)/CP × 100; discount% = (MP – SP)/MP × 100; SP = CP × (1 + profit%/100) × (1 – discount%/100).

Simple interest: SI = P × R × T / 100; compound interest: CI = P[(1 + R/100)^T – 1]; for half-yearly, use R/2 and 2T.

Time-speed-distance: distance = speed × time; relative speed: same direction = |s1 – s2|, opposite = s1 + s2; train crossing a pole: time = length/speed; crossing a platform: time = (length + platform)/speed.

Time and work: if A does work in x days and B in y days, together = xy/(x + y) days; use LCM method for multiple workers.

Ratio and proportion: if a:b = c:d, then ad = bc; compound ratio: (a:b) and (c:d) → ac:bd; mean proportional between a and b = √(ab).

Averages: average = sum/n; if each item is increased by x, average increases by x; weighted average = (n1×a1 + n2×a2)/(n1 + n2).

Permutation and combination: nPr = n!/(n–r)!; nCr = n!/(r!(n–r)!); for circular permutation of n distinct items, (n–1)!.

Subject-verb agreement: singular subject takes singular verb; 'each', 'every', 'either', 'neither', 'everyone', 'nobody' are singular; 'none' can be singular or plural depending on context.

Tenses: present perfect (has/have + past participle) for past action with present relevance; past perfect (had + past participle) for the earlier of two past actions.

Articles: 'a' before consonant sound, 'an' before vowel sound; 'the' for specific/unique nouns; zero article for general plural/uncountable nouns.

Prepositions: common collocations: 'depend on', 'comprise of' (not 'comprise of'-use 'comprise'), 'consist of', 'capable of', 'superior to', 'inferior to', 'prefer to'.

Idioms: 'a piece of cake' = very easy; 'break the ice' = initiate conversation; 'once in a blue moon' = very rarely; 'hit the nail on the head' = do exactly the right thing.

Reading comprehension: identify main idea, tone, inference, and vocabulary in context; eliminate options that are too broad, too narrow, or contradictory to the passage.

Error spotting: check parallel structure, misplaced modifiers, redundancy (e.g., 'return back', 'discuss about'), and double negatives.

Cloze test: read the whole passage first; use context clues and grammatical agreement to choose the best word; eliminate options that do not fit the tone or syntax.

RBI established 1 April 1935 under RBI Act 1934; nationalised 1949; headquarters Mumbai; Governor is the chief executive.

Monetary policy tools: repo rate (lending to banks), reverse repo (borrowing from banks), CRR (cash reserve ratio), SLR (statutory liquidity ratio), open market operations (OMO), marginal standing facility (MSF).

Bank nationalisation: 14 banks nationalised in 1969; 6 more in 1980; consolidation in 2019–2020 reduced public sector banks to 12.

Types of banks: scheduled commercial banks (in Second Schedule of RBI Act), cooperative banks, regional rural banks (RRBs), small finance banks, payments banks, local area banks.

NBFC: company registered under Companies Act 2013, engaged in financial activity; regulated by RBI; cannot accept demand deposits; must maintain NOF (net owned funds) of ₹2 crore (₹5 crore for new NBFCs).

Financial inclusion: Pradhan Mantri Jan Dhan Yojana (PMJDY) launched 2014; aims at universal access to banking; RuPay card, overdraft facility, and DBT linkage.

Payment systems: RTGS (real-time gross settlement, minimum ₹2 lakh), NEFT (batch, no minimum), IMPS (24×7), UPI (instant, mobile-based), NACH (bulk transactions).

Regulatory bodies: SEBI (securities), IRDAI (insurance), PFRDA (pensions), RBI (banking and monetary policy), FSDC (financial stability).

CRR: percentage of net demand and time liabilities (NDTL) that banks must keep as cash with RBI; no interest paid; currently 4.00% (as of 2024).

SLR: percentage of NDTL that banks must maintain in liquid assets (cash, gold, approved securities); currently 18.00% (as of 2024).

Basel III: capital adequacy framework: minimum CET1 4.5%, Tier 1 6%, total capital 8%; plus capital conservation buffer 2.5%; leverage ratio 3%; LCR and NSFR for liquidity.

NPA classification: substandard (NPA up to 12 months), doubtful (NPA > 12 months), loss asset (identified as loss by auditor/inspector).

Provisioning norms: substandard 15%, doubtful (secured) 25%, doubtful (unsecured) 40%, loss assets 100% (for advances).

Priority sector lending (PSL): target 40% of adjusted net bank credit (ANBC); sub-targets: agriculture 18%, micro enterprises 7.5%, weaker sections 12%.

KYC: Customer Due Diligence (CDD) mandatory; simplified KYC for low-risk; enhanced due diligence for high-risk; periodic updation of KYC.

Banking Ombudsman: RBI’s integrated ombudsman scheme (RB-IOS 2021) covers banks, NBFCs, and payment system participants; complaint can be filed online; no fee.

Credit appraisal: 5 Cs of credit: character, capacity, capital, collateral, conditions; also check CIBIL score, bank statements, and financial ratios.

Working capital assessment: Tandon Committee norms: MPBF (maximum permissible bank finance) methods: Method I (75% of WC gap), Method II (75% of current assets less other CL), Method III (no WC gap).

Letter of credit (LC): UCP 600 governs; types: sight, usance, confirmed, unconfirmed, revocable, irrevocable, transferable, back-to-back; key parties: applicant, beneficiary, issuing bank, advising bank, confirming bank.

Bank guarantee: performance guarantee, financial guarantee, advance payment guarantee; governed by URDG 758 (demand guarantees).

Documentary collection: URC 522; D/P (documents against payment) and D/A (documents against acceptance); riskier than LC for exporter.

Risk types: credit risk, market risk (interest rate, forex, equity), operational risk, liquidity risk, reputation risk; Basel III addresses these via capital and liquidity standards.

Credit rating: internal rating models; external ratings by CRISIL, ICRA, CARE, India Ratings; rating downgrade triggers higher provisioning and capital charge.

Trade finance instruments: pre-shipment and post-shipment credit, packing credit, bill discounting, factoring, forfaiting, export credit guarantee by ECGC.