How to Master the Finance and Management (FM) Section in RBI Grade B Exam

The Finance and Management (FM) section in the RBI Grade B Phase 2 Exam plays a crucial role in determining a candidate’s final selection. This section tests aspirants on their understanding of financial systems, banking regulations, monetary policies, and core management principles. This Section is only specific for the General DR post. In this article we have covered How to Master the Finance and Management (FM) Section in RBI Grade B Exam.

How to Master the Finance and Management Section in RBI Grade B Exam

The RBI Grade B 2025 exam consists of different exams varying on the three different posts which are General (DR), DEPR and DSIM. The Exam for the General (DR) post consists of two phases which are the Phase I exam and the Phase II Exam. In the Phase II Exam there are three papers which are the Paper I, Paper 2 and Paper 3 The Paper 3 contains only one subject which is Finance and Management (FM) consisting of 100 questions, 50 objective and 50 descriptive questions for a total of 100 marks for a duration of 120 minutes. Lets understand the Finance and Management (FM) Section in a little more depth.

Topics of Finance and Management Section in RBI Grade B Exam

Below we have provided the detailed Syllabus for Finance and Management (FM) Section in RBI Grade B Exam:-

Financial System: Structure and Functions of Financial Institutions, Functions of RBI, Banking System in India, Financial Institutions (SIDBI, EXIM Bank, NABARD, NHB, NABFID), Global Financial System and its impact on India, Information Technology in Banking, Non-Banking System, Digital Payments.

Financial Markets: Primary and Secondary Markets (Forex, Money, Bond, Equity), Functions, Instruments, and recent developments.

General Topics: Financial Risk Management, Basics of Derivatives, Global financial markets and International Banking, Financial Inclusion, Alternative finance, Public-Private Partnership, Corporate Governance in Banking, Union Budget, Accounting Basics, Inflation and its management, Monetary and Fiscal policies.

Corporate Governance: Meaning of ethics, Ethical problems in business, Theories of ethics (Utilitarianism, Rights and duties, Justice and fairness, ethics of care), Moral issues (Ethics in Compliance, Finance, HR, Marketing), Ethical Principles in Business, Role of Board of Directors, Best Practices, Code of Ethics and Conduct, Corporate Governance mechanisms.

General Preparation Tips for Finance and Management Section

These are some General Preparation tips that the candidates should keep in mind while preparing for this exam.

• Build a strong foundation by understanding key financial and management concepts.
• Stay updated with current affairs by reading financial newspapers, RBI reports, SEBI guidelines, Union Budget, and Economic Survey to be up to date with recent developments.
• Refer to standard study material, government reports, and official documents to avoid misinformation.
• Practice writing answers for descriptive questions regularly and structure your answers using introduction, main body, and conclusion, and support them with examples, data, and flowcharts.
• Identify important topics and question trends by solving PYPs to understand expected questions..
• Take mock tests to improve time management and accuracy in both objective and descriptive parts.
• Revise key concepts multiple times by preparing short notes on important theories, formulas, and definitions for quick revision before the exam.
• Manage time efficiently by allocating time wisely between the different Finance and Management topics, focusing more on weaker areas.
• Follow a study plan and maintain regular revision to retain concepts.