JAIIB IE&IFS cheat sheet

GDP at market prices = GDP at factor cost + indirect taxes − subsidies; GVA at basic prices = GDP at market prices − product taxes + product subsidies.

Real vs nominal: real GDP is measured at constant base-year prices; the GDP deflator = (nominal GDP ÷ real GDP) × 100. India's base year for national accounts is 2011-12.

CPI is compiled by NSO (Ministry of Statistics and Programme Implementation) and is the RBI's nominal anchor for the 4% ±2% flexible inflation targeting band; WPI is compiled by the Office of the Economic Adviser (DPIIT) and excludes services.

Money multiplier = 1 ÷ reserve ratio (CRR); M1 = currency with public + demand deposits + other deposits with RBI; M3 = M1 + time deposits with the banking system (broad money).

Fiscal deficit = total expenditure − total receipts excluding borrowings; revenue deficit = revenue expenditure − revenue receipts; primary deficit = fiscal deficit − interest payments.

Repo rate is the rate at which RBI lends to banks against government securities; reverse repo absorbs liquidity; SDF (introduced 2022) is the floor of the LAF corridor, with MSF as the ceiling.

Balance of payments = current account + capital account + errors and omissions; current account covers merchandise trade, services, primary income and secondary income (remittances).

Inflation measures: CPI (retail, base 2012), WPI (wholesale, base 2011-12), and core inflation excludes food and fuel; demand-pull vs cost-push distinguishes source of price pressure.

RBI is regulator for banks, NBFCs, payment systems and monetary policy; SEBI regulates securities markets; IRDAI insurance; PFRDA pensions; IFSCA regulates GIFT City IFSC entities.

Scheduled bank = included in the Second Schedule of the RBI Act, 1934, satisfying minimum paid-up capital and reserve criteria; scheduled status enables access to RBI refinance and clearing membership.

Priority sector lending target: 40% of ANBC for domestic scheduled commercial banks (18% agriculture, 7.5% micro enterprises); foreign banks with 20+ branches follow the same 40% target.

Basel III in India: minimum CET1 5.5%, Tier 1 7%, total CRF 9%, plus capital conservation buffer 2.5% and CCB; LCR and NSFR address liquidity risk.

Payment systems: RTGS is real-time gross settlement with no upper limit; NEFT is deferred net settlement in half-hourly batches; UPI is a real-time retail system run by NPCI.

Money market instruments: T-bills (91, 182, 364-day, zero coupon, issued at discount), commercial paper (unsecured, min 91 days), certificates of deposit, call/notice money, and TREPS.

Mutual fund categories: open-ended vs close-ended; SEBI mandates one scheme per category; expense ratio caps vary by AUM size; AMFI is the industry association.

Deposit insurance: DICGC insures deposits up to ₹5 lakh per depositor per bank; co-operative banks and RRBs are covered; primary co-operative societies are not.