Getting promoted from Scale I (Officer) to Scale II (Manager) is one of the most competitive milestones in a public sector banker’s career. The written examination is rigorous, spanning banking law, credit management, RBI guidelines, digital banking, forex, risk management, and more. This guide covers the complete syllabus, exam pattern, topic-wise weightage, and preparation strategy — and gives you access to a free 50-question mock test designed specifically for the Scale I → Scale II promotion exam.

What Is the Scale I to Scale II Promotion Exam?

Public sector banks in India conduct internal promotion examinations for officers seeking elevation from Junior Management Grade Scale I to Middle Management Grade Scale II. While each bank sets its own paper, the core syllabus is broadly uniform across SBI, PNB, Canara Bank, Bank of Baroda, Union Bank, and other PSBs:

• Banking Law & Regulations (SARFAESI, IBC, PMLA, NI Act, Limitation Act)
• Advances & Credit Management (credit appraisal, NPA, working capital, MSME, agriculture)
• RBI Guidelines & Monetary Policy (PSL, capital adequacy, PCA, exposure norms)
• Deposits, KYC & Customer Service
• Digital Banking & Technology (UPI, CBDC, digital lending, cybersecurity)
• Foreign Exchange & Trade Finance (FEMA, LC, Bank Guarantee, FEDAI)
• Government Schemes (MUDRA, CGTMSE, PMJDY, SHG-Bank Linkage)
• Risk Management & BASEL (LCR, NSFR, ICAAP, market risk)
• Finance & Economics (bank ratios, ALM, banking committees)
• HR, Vigilance & Service Regulations

Exam Pattern — Scale I to Scale II

While exact patterns differ by bank, the typical structure is:

Component	Typical Details
Mode	Online (CBT) or offline written
Questions	100–150 MCQs
Duration	2–3 hours
Negative Marking	Usually none or ¼ mark penalty
Medium	English / Hindi (bilingual)
Qualifying marks	50–60% (varies by bank)

Free Mock Test for Scale I → Scale II Promotion Exam

We have designed a free 50-question mock test that mirrors the Scale I → Scale II promotion exam pattern. The questions span all major topics, with a balanced mix of easy, medium, and difficult questions to help you identify strengths and gaps.

Key features of this free mock test:

• 50 MCQs covering all Scale I → Scale II modules
• Detailed explanation for every question
• Topic-wise performance breakdown after submission
• Unlimited reattempts — practice as many times as you want
• No negative marking
• Available 24×7 — attempt anytime, on any device

Register free (takes 30 seconds) and start the mock test instantly:

Topic-Wise Weightage & Preparation Strategy

Module A — Banking Law & Regulations (High Weightage)

This is consistently the highest-weightage section. Focus areas for Scale II:

• SARFAESI Act — Sec 13(2) 60-day notice, Sec 13(13) transfer lock, Sec 14 CMM possession timeline, Sec 17 DRT appeal, ARC/SR mechanics, CERSAI registration
• IBC 2016 — CIRP (330 days), PPIRP (120 days, MSMEs only), Sec 53 liquidation waterfall, Sec 14 moratorium scope, CoC voting (66%), Sec 238 overriding effect
• PMLA — Sec 5 provisional attachment, Sec 24 reverse burden, Sec 45 twin bail conditions, FATF Travel Rule, CKYCR
• NI Act — HDC vs Holder for Value, Sec 131 collecting bank protection, Sec 85 paying bank protection
• Limitation Act — DRT limitation, Sec 18/19 acknowledgment rules, interplay with SARFAESI and IBC

Module B — Advances & Credit Management (Highest Weightage)

Credit is the core of banking at Scale II level. Master these:

• NPA & Provisioning — IRAC norms, asset classification (SS/D-I/D-II/D-III/Loss), provisioning rates, NPA divergence thresholds, floating provisions
• SMA & Stressed Assets — SMA-0/1/2, CRILC reporting, ICA voting (75%+60%), additional provisioning for delayed resolution (180 days/365 days)
• Working Capital — Turnover Method (Nayak), MPBF Method II (75%×CA−CL), holding period formulas, CMA data
• MSME — 2025 revised limits, MSEFC (Micro & Small only), TReDS (mandatory for CPSEs and ₹250Cr+ companies), ECLGS
• Wilful Defaulter — 4 criteria, two-committee process (ED → CMD), consequences, June 2023 OTS framework
• NARCL — 15:85 cash:SR structure, Swiss Challenge, IDRCL distinction
• MCLR vs RLLR — 4 MCLR components, mandatory switch for retail/MSME, spread lock, no RLLR→MCLR switch

Module C — RBI Guidelines & Monetary Policy

• PSL — ANBC formula, CEOBE, SMF 8% sub-target, PSLC trading on e-Kuber (no credit risk transfer), RIDF/SIDBI/NHB shortfall funds
• Capital Adequacy — India CET1 5.5% (vs BCBS 4.5%), CCB 2.5%, D-SIB surcharges (SBI = Bucket 3 = 0.60%), LCR and NSFR requirements
• PCA — Three indicators (CRAR, Net NPA, RoA), three thresholds (RT1/RT2/RT3), November 2021 changes (leverage ratio removed, RoA added), exit conditions (4 compliant quarters)
• Exposure Norms — Traditional (15%/40% of Capital Funds) vs LEF (25%/15% of Tier 1 for G-SIBs)
• Money Market — LAF corridor (SDF floor, MSF ceiling), M0 vs M3, Money Multiplier, WMA

Modules D, E, G, H, I — Other Sections

• KYC/PMLA — V-CIP, CKYCR, FATF Travel Rule, DPDP Act 2023 implications
• Digital Banking — Digital Lending Guidelines 2022 (KFS, LSP/RE responsibilities), UPI Lite, UPI 123PAY, Credit on UPI, CBDC e₹-R vs e₹-W, Account Aggregator (FIP/FIU distinction from CICs)
• Forex — FEMA resident status, NRE/NRO/FCNR(B) comparison, LC types and UCP 600, FEDAI rate quotation conventions, export factoring vs forfaiting
• ALM & Risk — LCR formula (HQLA/net cash outflows ≥100%), NSFR (ASF/RSF ≥100%), ICAAP (Pillar 2), operational risk BIA (15% × average gross income)
• Banking Committees — Narasimham I & II, Nayak (working capital), Raghuram Rajan (financial sector reforms), recent RBI committees

5 High-Yield Topics Every Scale II Aspirant Must Master

1. SARFAESI + IBC interplay — Banks often use both simultaneously; understand which takes precedence (Transcore 2008: SARFAESI and DRT can run simultaneously; IBC Sec 238 overrides both on CIRP commencement)
2. NPA Divergence — A purely Scale II topic. Know both thresholds (>10% PBPC for provisions; >15% incremental GNPA for NPAs)
3. PSL ANBC calculation — One or two numerical questions almost always appear. Practice the formula: NBC = GBC − inter-bank advances − rediscounted bills; ANBC = NBC + HTM non-SLR bonds
4. PCA thresholds — Examiners love testing CET1 levels. Know RT1 CRAR = 10.25% (not 9%), and that CCB breach ≠ PCA trigger
5. MCLR vs RLLR — MCLR is not dead yet; many borrowers are still on it. Know: 4 MCLR components, RLLR mandatory for retail/MSME floating-rate from Oct 2019, no reverse switch permitted

Common Mistakes to Avoid

• Confusing SARFAESI 60-day notice with DRT 30-day notice requirement
• Treating CCB breach as a PCA trigger — it is NOT; it only restricts capital distribution
• Confusing SDF (uncollateralised) with Reverse Repo (collateralised G-Sec-backed)
• Thinking G-SIBs get a HIGHER exposure limit — they actually get a LOWER limit (15% vs 25% under LEF)
• Assuming MSEFC covers Medium enterprises — it covers only Micro and Small
• Confusing PSLCs as transferring credit risk — they transfer only compliance benefit, not the underlying loan

Start Your Mock Test Now

The best way to prepare is to test yourself under exam-like conditions, identify weak areas, and revise those topics. Our free mock test gives you instant feedback with detailed explanations after every question.

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