BoM Generalist Officer (Scale II/III) flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Syllogism: All A are B

If all A are B and all B are C, then all A are C is valid. If some A are B and all B are C, then some A are C is valid.

Circular seating arrangements

For n people around a circle, fix one person and arrange the rest in (n–1)! ways. If clockwise and anticlockwise are distinct, total is (n–1)!; otherwise (n–1)!/2.

Data sufficiency answer choices

Options: (1) alone sufficient, (2) alone sufficient, (3) both together sufficient, (4) each alone sufficient, (5) insufficient. Evaluate each statement alone first.

Direction sense displacement

Net displacement is the vector sum of all movements. For 90° turns, use Pythagoras; for other angles, use the law of cosines to find straight-line distance.

Successive percentage change formula

Net change = a + b + (ab/100), where a and b are percentage changes with signs. Example: +10% then –10% gives –1% net change.

Compound interest formula

CI = P[(1 + R/100)^T – 1]. For half-yearly compounding, use R/2 and 2T; for quarterly, use R/4 and 4T.

Time and work together

If A finishes in x days and B in y days, together they take xy/(x + y) days. Use LCM of days as total work for multiple workers.

Profit and discount relation

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

Train crossing problems

Time to cross a pole = train length / speed. Time to cross a platform = (train length + platform length) / speed. Convert km/h to m/s by multiplying by 5/18.

Subject-verb agreement rules

Singular subjects take singular verbs. Each, every, either, neither, everyone, nobody are singular. None can be singular or plural depending on context.

Present perfect tense use

Has/have + past participle for a past action with present relevance. Past perfect (had + past participle) for the earlier of two past actions.

Common preposition collocations

Depend on, capable of, superior to, inferior to, prefer to, consist of, comprise (no of). Use 'comprise' without 'of'.

Idiom: piece of cake

Means something very easy to do. Example: The exam was a piece of cake for her.

Reading comprehension strategy

Identify main idea, tone, inference, and vocabulary in context. Eliminate options that are too broad, too narrow, or contradict the passage.

RBI establishment

Reserve Bank of India established on 1 April 1935 under RBI Act 1934; nationalised in 1949; headquarters in Mumbai; headed by Governor.

Monetary policy tools

Repo rate, reverse repo, CRR, SLR, open market operations, and marginal standing facility are key tools used by RBI to control money supply and inflation.

Bank nationalisation years

14 major banks nationalised in 1969; 6 more in 1980. Consolidation in 2019–2020 merged several public sector banks, leaving 12 PSBs.

RTGS and NEFT

RTGS is real-time gross settlement with minimum ₹2 lakh per transaction. NEFT is batch settlement with no minimum. Both are operated by RBI.

CRR definition

Cash Reserve Ratio is the percentage of net demand and time liabilities (NDTL) banks must keep as cash with RBI. No interest is paid on CRR balances.

SLR definition

Statutory Liquidity Ratio is the percentage of NDTL banks must maintain in liquid assets like cash, gold, and approved securities before lending.

Basel III capital ratios

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 over 12 months. Loss asset: identified as loss by auditor or inspector.

Priority sector lending target

Banks must lend 40% of adjusted net bank credit to priority sectors. Sub-targets: agriculture 18%, micro enterprises 7.5%, weaker sections 12%.

KYC norms

Customer Due Diligence mandatory. Simplified KYC for low-risk customers. Enhanced due diligence for high-risk. Periodic updation of KYC required.

Five Cs of credit

Character, capacity, capital, collateral, and conditions. Used in credit appraisal to assess borrower creditworthiness along with CIBIL score and financial ratios.

Letter of credit rules

UCP 600 governs letters of credit. Types include sight, usance, confirmed, unconfirmed, revocable, irrevocable, transferable, and back-to-back LCs.

Bank guarantee rules

URDG 758 governs demand guarantees. Types: performance guarantee, financial guarantee, advance payment guarantee. Used in trade and project finance.

Documentary collection rules

URC 522 governs documentary collections. D/P (documents against payment) and D/A (documents against acceptance). Riskier than LC for exporter.

Tandon Committee norms

Working capital assessment methods: MPBF Method I (75% of WC gap), Method II (75% of current assets less other CL), Method III (no WC gap).

Credit rating agencies

External agencies: CRISIL, ICRA, CARE, India Ratings. Internal rating models used by banks. Downgrade triggers higher provisioning and capital charge.

Trade finance instruments

Pre-shipment and post-shipment credit, packing credit, bill discounting, factoring, forfaiting, and ECGC export credit guarantee.

Types of risk

Credit risk, market risk (interest rate, forex, equity), operational risk, liquidity risk, reputation risk. Basel III addresses via capital and liquidity standards.