PROMOTION PROCESS IN PUBLIC SECTOR BANKS
Every year various exams are conducted by, IBPS etc. to recruit clerks in the banks which is simple to understand however promotion in a PSU is perceived as a little bit perplexing. This article will help you understand the process of promotion from clerks to officer cadre in public sector Banks (PSUs) after selection. Here we’ll put simply how a clerk can become an officer in a PSU.
Eligibility Criteria For Promotion Process In Public Sector Banks
Promotional exams are conducted regularly in public sector banks which clerks who wish to move to managerial positions can take.
To join the Officer cadre, it’s required to undergo at least two years of service as a clerk in any nationalised bank. There are two ways to get promoted to an officer-level position from the clerical position. However, the selection is experience and performance-based.
Either the aspirant can choose to appear for the written exam which is also based on the seniority and experience of employees. This process doesn’t involve the requirement to have CAIIB/JAIIB diploma.
Or with the experience of 2 years as a clerk (minimum qualification: Graduation) along with a JAIIB/CAIIB diploma from IIBF (Indian Institute of Banking and Finance).
There are 7 different officer cadres, which can be entered upon clearing the test of PO (Probationary officer).
Scale 1 – Officer / Assistant Manager
Scale 2 – Manager
Scale 3 – Senior Manager
Scale 4 – Chief Manager
Scale 5 – Asst. General Manager
Scale 6 – Deputy General Manager
Scale 7 – General Manager.
Benefits of getting promoted from clerical to officer cadre
Once a clerical employee gains a promotion, he/she becomes an officer.
For a year, a PO has to serve on probation.
Passing the JAIIB/CAIIB can get three salary increments (One for JAIIB, 2 for CAIIB).
Candidates can choose to work in the state they wish upon passing the test after being promoted.
From the day promotion is granted, officers become eligible to enjoy the benefits and incentives associated with the rank, however, the previous incentives cease to continue once probation is over.
Many employees have enjoyed the privilege of retention of home states.
Officers are offered a Staff Housing Loan of 50 lakhs, contrasted with its clerks’ 30 lakhs and its subordinates’ 20 in Indian banks.
Perks/allowances officers are entitled to post promotion
| Allowances | Perks |
| According to the GOI’s CPI banks review the Dearness allowance every quarter. In response to higher inflation DA may increase and vice versa.
House rent allowance and City compensatory allowance may vary from city to city. Special allowance: Recent revision in the Bank PO compensation structure has incorporated a special allowance that accounts for 7.75% of the basic pay. After the Bipartite settlement, the total salary of the PO nearly stands at Rs. 50000 |
Leased accommodation: Instead of HRA, this facility can be brought into use by banks. Accommodations that the bank lease on some special properties is known as Official bank lodging/Bank quarter. Bankers are obliged to not receive any money in cash since the payment will be directly paid to the property owner once a property is leased.
Travelling allowance: A fixed amount is paid to bankers; however, in some cases, officers can be paid for gasoline expenses by requiring them to own scooters, bikes, or cash where they’re posted. Each month with a set amount one newspaper is reimbursed. Medical support: Each year banks predetermine the amount it pays under medical aid (Revised amount: Rs 8000). New year pension schemes award some benefits, too. |
Looking for reliable study material?
Refer to Learning Sessions study material, and courses to gain a deeper comprehension of all topic principles and receive higher marks on each question. Candidate selection should cover all of the topics and elements stated in the curriculum to ace the written exam. Additionally, candidates can look at our website and YouTube channel, which also has solved question papers from earlier exams.
All banks regularly hold bank promotion tests for all scales since they give bankers a fantastic chance to advance in the banking industry. These internal promotion exams are used to gauge a banker’s officer’s readiness for more challenging tasks and other managerial responsibilities.
We have created a study plan, a list of frequently asked questions, and study materials with the help of our team that cover the most recent syllabus, current events, and financial and economic updates. Your exam success is guaranteed by our highly trained professionals.
SYLLABUS AND PATTERN OF PROMOTION EXAM 2023
| Section | No. of questions | Max. marks |
| General sound knowledge of KYC, legal issues and the banking environment | 50 | 25 |
| Financial Inclusion, Alternative Channel & IT Products, Other Banks, Products & Services of the Bank Associates & Subsidiaries | 30 | 15 |
| Recent financial results, bank performance metrics, and productivity and profitability-related issues | 10 | 5 |
| Understanding of the bank’s use of CBS and other IT products, as well as IT-related security issues. | 20 | 15 |
| General banking | 10 | 20 |
| Awareness | 10 | 10 |
| Bank’s organisational structure and policy directives | 10 | 10 |
| PROMOTIONAL EXAMS 2023 (SCALE I TO II) | ||
| Features of the Product: Deposit/Liability Product | 20 | 10 |
| Product Specifications: Asset Product | 20 | 10 |
| Information Technology Channels, Payment Options, Transaction Products, etc., and Other New Initiatives | 10 | 5 |
| Organizational structure, Systems & Procedures in Branches & CPC (Both System & Manual), and HR-Related Questions | 20 | 10 |
| Forex, Treasury, and Global Banking | 5 | 2.5 |
| Government enterprise, cross-selling of goods, and financial inclusion | 15 | 7.5 |
| Bank-Related Laws | 15 | 7.5 |
| Macroeconomic Situation, General Knowledge | 10 | 5 |
| NPA Management in Loans and Advances: Pre-, Post-, and Sanction Processes | 15 | 7.5 |
| Comprehensions (English) | 20 | 10 |
| Total Marks | 150 | 75 |
| PROMOTIONS EXAM SCALE II to III (100 MINUTES) | ||
| Features of the Product: Deposit/Liability Product | 20 | 10 |
| Product Specifications: Asset Product | 20 | 10 |
| Information Technology Channels, Payment Options, Transaction Products, etc., and Other New Initiatives | 10 | 5 |
| Organizational structure, Systems & Procedures in Branches & CPC (Both System & Manual), and HR-Related Questions | 20 | 10 |
| Forex, Treasury, and Global Banking | 5 | 2.5 |
| Government enterprise, cross-selling of goods, and financial inclusion | 15 | 7.5 |
| Bank-Related Laws | 15 | 7.5 |
| Macroeconomic Situation, General Knowledge | 10 | 5 |
| Loans and Advances Pre-Sanction, Post-Sanction, and NPA Management | 15 | 7.5 |
| English Language Comprehension | 20 | 10 |
| Total | 150 | 75 |
The Bank Promotion Exams syllabus comprises the following topics at a glance:
- Banking-related laws include the Indian Contract Act of 1872, the Banking Regulation Act, the RBI Act, and the Negotiable Instruments Act.
- Banking Rules and Regulations.
- Schemes and goods designed specifically for banks include: MSME Loan Products
- Retail Lending Programs.
- Farming Loan Programs, Deposit Products, etc.
- Foreign Exchange, BC, Banking Ombudsman Scheme, RTI Act, 2005, Consumer Protection Act, FEMA, PMLA, and other laws regulating advances and limits thereon.
- Banking-related laws include the Indian Contract Act of 1872, the Banking Regulation Act, the RBI Act, and the Negotiable Instruments Act.
- Business structures include proprietorships, partnerships, and HUF companies.
- Risk management, payment banks, small finance banks, GST, money market instruments, etc. are just a few examples.
- Digital Banking, Money Transfer Service Scheme (MTSS), MICR (Magnetic ink character recognition)/IFSC- Indian Financial System Code/CTS, most recent monetary policy, exposure norms.
- Issues that are exclusive to a given bank are their customer compensation policies, deposit products, retail programmes, agriculture and MSME initiatives, loaning authority, and IT/digital banking products.
- Account and types of accounts, debit and credit card varieties, online and mobile banking, a delegation of sanctions, etc.
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