RBI Grade B online application is open now. Many candidates are confused among the three choices for the optional paper (Paper III) to be attempted in Phase II. These are :
- Finance & Management
The reason behind this confusion is surprisingly very simple. A single mistake (by choosing the wrong subject) can cost you the recruitment in one of the best central banks in the world and not to forget the highest paying government bank in India. This confusion gets aggravated i.e. gets even worse as you have to fill the optional choice for Phase II while filling out the application form for RBI Grade B. So as a candidate you are faced with a double dilemma. You can’t fill up the form until you enter that choice and you can’t research the choice in the amount of time left, since you have to prepare for Phase I, but if you choose the wrong choice for Phase II you may not be able to clear it and as a result loose the golden opportunity of working with RBI.
To help RBI Grade B candidates make an informed choice we have come with detailed comparison and suggestions on which subject to opt for optional subject in RBI Grade B Phase II. We will take each of the three subject one by one. We hope after reading this post you will be able to identify which subject among the three will suit your strengths and fill up the choice accordingly.
1. Finance and Management
This choice for the third paper of RBI Grade B Phase II is divided into two categories:
Finance is further divided into three sections
(a) Financial System: The questions in this this section would deal with functioning & regulators of banks/financial Institutions in India like SIDBI, EXIM, NABARD and Reserve Bank of India. (special reference to monetary policy).
(b) Financial Markets: Financial Markets are markets where people trade financial securities and commodities like Forex, Money, Bonds, Equity etc. This section of RBI Grade B phase II will deal with functions, instruments and recent developments of primary and secondary markets.
(c) General Topics : The general topics covered in finance are risk management in banking sector, basics of derivatives, use of technology in financial inclusion, corporate governance in banking sector, the union budget and inflation related terms.
Management section deals with general management terms like Planning, organisation, staffing, leadership. It also checks the nature and scope of management, the role of manager in organisation, various leadership styles & theories, Human resource development, career planning, motivational theories, modes of communication and corporate governance.
Why to choose
- If you come from finance and management background : BCom(Bachelor of commerce) or BBA(Bachelor of Business Administration) or any other course related to financial markets and management(either single or both).
- You would be familiar with most of the sections covered in this paper. Revising the concept again would be sufficient to successfully attempt paper III.
- If you love theory and remembering bits of information.
- You would have to read a maximum of 2-3 books to cover all the sections, making it easier for absorbing all the knowledge.
- Even if you come from non commerce backgrounds (engineering to be very precise), you can finish this section quite easily. You dont have to get into deeper concepts like in the case of economics and statistics. Choose your books, mug up the theory, memorize the information and answer the questions in the exam. Simple and Easy.
Economics for third paper of RBI Grade B Phase II is divided into five sections:
(a) Microeconomics : It deals with the behavior of consumers and firms in decision making concerned with the allocation of resources like land, labour and capital. Typically it deals with markets where goods or services are bought and sold. i.e. it is concerned with market monopolies, competition and general equilibrium of price and activity.
(b) Macroeconomics : It deals with the performance, structure, behavior, and decision-making of an economy as a whole, rather than individual markets, including national, regional, and global economies. Typical areas covered are measurement of national income, equilibrium of goods and market, Studying major economic schools of thought , consumption and demand of money and its policies.
(c) International Economics: It deals with advantages of international trade and its effect on resource allocation. It also includes studying international finance and exchange rates in open economies and benefit cost analysis of inter-connected financial markets and their evolution.
(d) Public Economics: It deals with public goods, instruments of financing, taxation and government expenditure policy.
(e) India’s Economy and Development Issues : This section is concerned with planned development models and their outcomes, demographics, poverty, urbanization, reforms in banking, insurance, fiscal policy. Besides these it also covers policy and developments of agricultural and other sectors of economy like trade, tourism, services etc.
Why to choose
- If you come from economics background (BA Economics), this section is for you.
- If you like reading about economy and have gathered insights into the functioning of the economy. Basically you are comfortable discussing the fiscal policy and follow RBI announcements religiously.
- You are a keen observer of international economies and how they interact with each other.
- You like medium level calculations, as this paper will involve graphs, charts and computations.
- People form non economics background, you will have to study about economics and social issues for first paper of RBI Grade B Phase II. So if you arent comfortable studying finance and statistics you can opt for this paper.
- Paper would be very specific and predictability of questions would be high.
This section deals with various practices of gathering and analyzing vast troves of data for arriving at meaningful results. The various sections covered are Probability, Statistical methods, linear models, statistical inference , Multivariate Analysis, optimization, sample surveys, applied economic statistics, vital statistics, numerical analysis and basic computer applications.
Why to choose
- If you love playing with numbers, you should opt for this paper.
- If you studied these concepts in detail in your undergraduation and schooling.
- If you are comfortable doing large calculations and love using data to arrive at decisions.
- If you hate reading and remembering theory.
- If you are from technical background, this section can turn out to be a boon for you.
- Questions will be numerical so increases the accuracy. Solve the question and select the correct answer. No room for error.This completes are overall Analysis of choices in Paper III of RBI Grade B Phase II. Below is the summary:
- Choose Finance & Management if you want absolutely no numerical solutions and you like reading and memorizing. The coursework will be consisting of 2-3 books. Refer them and you are good to go.
- Choose economics if you dont like solving high level problems as in statistics and enjoy reading and commenting about various factors of economy.
- Choose Statistics if, and only if you are very comfortable with solving lengthy numerical data and have no love for reading theory.
Please choose your option very carefully and think twice before finalizing it. Please ask us any questions or doubts you may have in the comments section below and we will be glad to answer them. Thank you for reading patiently and All the best for your exam. God bless you.