Banking Regulation and Supervision — Prelims Strategy

Prelims Strategy

To ace Prelims questions on Banking Regulation and Supervision, a meticulous approach to factual details and recent developments is essential. Start by thoroughly understanding the core legal framework, primarily the Banking Regulation Act, 1949, and key sections related to RBI's powers.

Memorize the components of important frameworks like Basel III (CRAR, LCR, NSFR, CCB) and the CAMELS rating system. Pay close attention to the triggers and restrictions under the Prompt Corrective Action (PCA) framework.

Crucially, stay updated with all recent RBI circulars and guidelines, especially those concerning digital banking (Account Aggregator, Digital Lending Guidelines), NBFCs (Scale-Based Regulation), and cooperative banks.

Note down specific percentages, dates, and key terms associated with these reforms. Practice MCQs that test your knowledge of these specific provisions and their implications. Be wary of options that mix up different regulatory tools or misattribute their scope (e.

g., confusing Basel III with domestic regulations like PSL). Vyyuha's advice: create flashcards for key terms, acronyms, and their definitions, and regularly review the 'thirty-second revision' and 'prelims revision notes' sections.