Finance paper is part of Phase II or Mains exams. In this phase Candidates are given 90 minutes time to solve three separate papers carrying hundred marks each. The paper includes Social and economic issues, English, and Management & Finance. This paper (Finance) includes two papers Finance and Management which is considered as the most difficult part of the second phase of exam. Finance part is considered as the most difficult part so proper strategy and extra efforts is needed for this section. First of all do selective study. Select topics as mentioned in Syllabus of RBI Grade B Officer start the preparations accordingly. Practice for Numerical questions as they are part of the syllabus and are very important. Not much but some portion or part of the Finance portion numerical questions are asked and are related to the following topics:

1. Bond valuation
2. Problems based on IRR (Internal Rate of Return)
3. Questions related to NAV (Net Asset Value)
4. Accounting Ratios
5. Bond yields and Price of Bonds
6. Balance Sheet and Income Sheet
7. Risk Management
8. Time value of money (Specially growing annuities)
9. Ratio analysis
10. Cost of capital
11. Capital structure
12. Cash flow statement
13. Fund flow statement
14. Derivatives (Valuation of options)
15. Capital budgeting

The above topics are not least but these are very important part of the syllabus and thus there may be various other topics which may be questioned in finance part. The question pattern is not very tough, it is modest and both theory and practical questions are includes in it. The candidate form non commerce background can also crake the exam and can qualify for the next phase with well planned and strategic study. He/she needs just to practice the practicals thoroughly and clear the basics concepts of finance without any confusions and doubts. Questions asked are from basic to the moderate level and the course can be completed in around 30 days, if studied very carefully. In theory section questions are related to reasons, causes for or behind certain event, questions are even related to corporate governance.

This part is basically related to financial and management means Value of Money, Time, Interest, Compound Interest etc. Before solving the numerical based on Bond yields and Price of Bonds one should cover these topics. As the valuation process needs to have a clear concept on the financial terms such as the fair value (or par value), bonds etc. The valuation of bonds is a process which involves calculating the present value of a bond's, expected future coupon payments, or cash flow and the bond's value upon maturity date, or face value of the bond. As bond's par value and interest payments are set, bond valuation helps the investors to figure out at what rate of return would make a bond investment worth of cost for him or her. Questions may be based on either theory or practical such as how to calculate the value of bond or from theory as what is the meaning or definition, types, characteristics, calculation formula etc. For numerical part on Accounting Ratios, Balance Sheet and Income sheet basic conceptual understanding of the balance sheets and Income sheets is necessary. With the decent or basic understanding on Risk Management and derivatives one can solve the numerical on ease as questions are pretty easy. Question related to the returns such as definition of IRR, full name or form, work, formulas of returns, difference such as in between IRR and ROI, etc., may also be asked.

Resources that are useful or aspirants for cracking exam:

• Business Studies and Accountancy Books of NCERT of 12th standard for all as these books will help in making the basic concepts clear for those from non commerce background and strong for commerce students.
• For selected topics read Indian Financial System- Bharati V Pathak
• Financial Management- I M Pandey /Khan & Jain/Prasanna Chandra for selected topics related to financial managements.
• For Ratios go through the book Analysis of financial statements- TS GREWAL.
• The Economic Survey of India
• Press information Bureau
• The Budget
• RBI Website
• RBI Grade B previous year question papers
• CAIIB and JAIIB books are also helpful for grade B officer’s exam.
• Newspapers for current events and factual in nature. One should go through The Hindu, The Economic Times, etc., for issues, news, updates, etc., related to finance and economics