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IDBI Bank ESO study materials
IDBI Bank ESO study resources

IDBI Bank ESO: General Awareness: Banking, Economy and Current Affairs

IDBI Bank ESO · Work through your exam, one topic at a time.

All guide sections

General Awareness: Banking, Economy and Current Affairs

What this domain tests

General Awareness in IDBI Bank ESO checks static banking and economic concepts plus recent developments that affect banks, markets and policy. Questions often mix definitions such as repo, CRR and NPA; institutional roles such as RBI, SEBI, NABARD and SIDBI; government schemes; budget and monetary-policy events; and economic indicators such as GDP, CPI, WPI and IIP.

Core rules and concepts

  • Monetary policy tools: repo is the rate at which RBI lends short-term funds to banks against securities; reverse repo absorbs liquidity; CRR is the share of net demand and time liabilities kept with RBI; SLR is held in approved securities; OMO purchases inject liquidity, while sales absorb it.
  • Banking health: gross NPA vs net NPA, provisioning, capital adequacy under Basel norms, CASA ratio and priority-sector lending targets.
  • Institutions: RBI regulates monetary policy and banks; SEBI regulates securities markets; IRDAI regulates insurance; NABARD supports rural credit; SIDBI supports MSMEs.
  • Current affairs: track RBI policy statements, Union Budget tax and spending headlines, bank capital or merger news, major appointments and international economic reports.

Worked example

Question: To inject liquidity into the banking system, RBI would most likely: (a) increase CRR (b) buy government securities in OMO (c) increase SLR (d) sell government securities. Reasoning: Higher CRR or SLR locks up bank funds, reducing liquidity. Selling securities takes money out of the system. Buying securities pays banks, adding reserves. Answer: (b).

Traps

  • Swapping repo and reverse repo, or CRR and SLR.
  • Treating GDP and GNP as identical; GDP is domestic production, while GNP adds net factor income from abroad.
  • Using unverified social-media current affairs instead of RBI, PIB and budget releases.
  • Forgetting that a scheme's launch year is static while its present status may be current affairs.

Key points

Keep tool direction clear: repo lends, reverse repo absorbs, OMO purchase injects.