Commercial Banking in India : A Beginner's Module (Foundation) Practice Exam

Commercial Banking in India: A Beginner's Module (Foundation) Practice Exam

The Commercial Banking in India: A Beginner's Module (Foundation) Practice Exam is designed to introduce candidates to the core concepts of banking and provide a foundational understanding of the Indian banking system. This module covers the basic principles, policies, and practices commonly followed by banks in India. It is ideal for individuals who wish to gain essential knowledge of the banking sector, enhance their awareness of current banking practices and regulations, and become familiar with the various financial services offered by Indian banks.

Who Will Benefit from This Course?

• Students aspiring to build a career in banking

• Banking professionals looking to strengthen their foundational knowledge

• Employees working in call centres or BPOs associated with banks

• Teachers and trainers of financial and banking-related subjects

• Anyone with a genuine interest in the Indian banking sector

Exam Details

• Duration: 120 minutes
• No. of questions: 60
• Maximum marks: 100, Passing marks: 50 (50%); There is no negative marking in this module.
• Certificate validity: For successful candidates, certificates are valid for 5 years from the test date.

Course Outline

The exam covers the following topics:

1. Introduction

• Definition of banks, Evolution of Commercial Banks in India, Functions of Commercial Banks, Competitive Landscape of Banks in India.

2. Banking Structure in India

• Banking Structure in India, Role of RBI vis-'-vis other commercial banks.

3. Bank Deposit Accounts

• Introduction to Bank Deposits, Types of Deposit Accounts, Strategies of mobilizing deposits, Common guidelines of opening and operating accounts, deposit related services, Deposit services offered to Non-Resident Indians, Deposit Insurance

4. Basics of Bank Lending

• Principles of Lending and Loan Policy, Basics of Loan. Appraisal, Credit decisionmaking and review, Types of Advances, Management of Non-Performing Assets.

5. Bank Investments

• Investment Policy, Statutory Reserve Requirements, Non-SLR Requirements, Banks' Investment Classification and Valuation Norms.

6. Other Activities of Commercial Banks

• Other Basic Banking activities, Para -banking Activities.

7. Relationship between Banks and Customers

• Strategy for expanding customer base, services to different customer groups, competition among banks for customers, customer relationship management, Banking Options ombudsman Scheme, Know Your Customer (KYC) norms Evolving Trends in Modern Banking Technology, Outsourcing of Non-core Activities, Financial Inclusion