IBPS PO III - Interview Question

1. Types of banks?

Ans. There are many  type of bank

1. Nationalized banks

2. Private Banks

3. Foreign banks

4. Regional rural banks

5. Co-operative banks

6. Industrial banks etc..,

2. What is a nationalized bank?

Ans: Banks which are owned and run by government of India are called as nationalized banks.

Example: Canara bank, syndicate bank, Vijaya bank, etc..,

There are total 21 nationalized banks at present

3. What is RBI [Reserve Bank of India], when it is established and what are its functions?

Ans: RBI established in 1935 and Nationalized in 1949 and its head office in Mumbai. Present Governor of RBI “ Raghuram Rajan”.

Its functions:

• Issues currency notes

• Acts as bankers bank

• Maintains foreign exchange reserves

• Maintains CRR and SLR

4. What is RRB'S (regional rural banks)?

Ans. Regional Rural Banks are the banking organizations being operated in different states of India. They have been created to serve the rural areas with banking and financial services. Share capital in RRB’s: Central government: 50%, Sponsored bank: 35%, State government: 15%

Prathama Bank is the first Regional Rural Bank of India, sponsored by Syndicate Bank established on 2nd October, 1975, with its Head Office at Moradabad

RRBs works under supervision of NABARD (National Bank for Agriculture and Rural Development). NABARD head office is at MUMBAI.

5. Types of accounts in banks?

Ans. Savings bank account [SB a/c]: The main purpose of SB a/c is to encourage small savings from the public. Interest paid on SB a/c is 4 percent. Any individual can open SB a/c. An Indian residing at abroad can open a NRI a/c. NRI represents non-resident Indians.

• Current account: It’s a running and active account. No interest is paid on current a/c. Current accounts can be opened on firm names. Even individuals can also open current a/cs. But on firm names you cannot open SB a/c.

• Fixed Deposit account: Amount is kept for a fixed period. Higher rate of interest will be paid on this a/c.

• Recurring deposit [RD a/c]: A fixed amount can be deposited in monthly installments. Interest rate is same as fixed deposits.

6. What is BSBDA Account (BASIC SAVING BANK DEPOSIT)

Ans : Under the guidelines issued on August 10, 2012 by RBI: Any individual, including poor or those from weaker section of the society, can open zero balance account in any bank. BSBDA guidelines are applicable to "all scheduled commercial banks in India, including foreign banks having branches in India".

All the accounts opened earlier as 'no-frills' account should be renamed as BSBDA. Banks are required to convert the existing 'no-frills' accounts’ into 'Basic Savings Bank Deposit Accounts'.

The 'Basic Savings Bank Deposit Account' should be considered as a normal banking service available to all customers, through branches . The aim of introducing 'Basic Savings Bank Deposit Account' is very much part of the efforts of RBI for furthering Financial Inclusion objectives.

7. What is Repo rate?

Ans. The rate at which RBI lends money to commercial banks is known as Repo Rate.

Repo Rate at present: 7.75%

8. What is Reverse rate?

Reverse Repo rate: Reverse repo rate is the rate at which the central bank of a country (Reserve Bank of India in case of India) borrows money from commercial banks within the country. It is a monetary policy instrument which can be used to control the money supply in the country.

Reverse Repo rate: 6.75%

9. What is CRR and SLR?

Ans. CRR: Cash Reserve Ratio – It is the ratio of physical cash that every bank has to keep with RBI. Current CRR – 4%

SLR: Statutory Liquidity Ratio – It is the ratio of liquid assets that every bank has to keep with RBI.

Current SLR – 23%

10. What is  KYC norms?

Ans: The full form of KYC is – Know Your Customer KYC guidelines was introduced by – RBI for all banks in the year – 2002

The components of KYC – Identity proof , address proof , photographs

The objective of KYC guidelines is – to prevent banks from criminal money laundering activities

KYC day is celebrated on – First working day of august every year

11. What is BASE RATE ?

Ans. The minimum interest rate of a bank below which it cannot lend to public

The BPLR (Benchmark prime lending rate)was introduced in the year – 2003 The BPLR was converted into base rate on – july 2010

RBI made mandatory for all banks to introduced w.e.f. – 1July 2010, The minimum base rate is fixed by – RBI

12. What is CBS (Core Banking Solutions):

Ans : Core Banking Solutions is the process, where branches of the bank are connected to a central host and the customers of connected branches can do banking at any breach with core banking facility.

13. What is NEFT ?

Ans: NEFT (National Electronic Fund Transfer): NEFT enables funds transfer from one bank to another but works a bit differently than RTGS. NEFT is slower than RTGS. The transfer is not direct and RBI acts as the service provider to transfer the money from one account to another. You can transfer any amount through NEFT, even a rupee.

14. What is RTGS?

RTGS (Real time gross settlement ): RTGS system is funds transfer systems where transfer of money or securities takes place from one bank to another on a "real time" and on "gross" basis. Settlement in "real time" means payment transaction is not subjected to any waiting period. The transactions are settled as soon as they are processed. "Gross settlement" means the transaction is settled on one to one basis without bunching or netting with any other transaction. Once processed, payments are final and irrevocable.

Minimum & Maximum Limit of RTGS: 2 lakh and no upper limit.

15. What is EMV based card payments?

Ans: EMV stands for Europay, MasterCard and Visa, a global standard for inter-operation of integrated circuit cards (IC cards or "chip cards") and IC card capable point of sale (POS) terminals and automated teller machines (ATMs), for authenticating credit and debit card transactions. It is a joint effort initially conceived between Europay, MasterCard and Visa to ensure the security and global interoperability of chip-based payment cards

16. What is Bhartiya Mahila Bank (BMB)

Ans: BMB is an Indian financial services banking company based in New Delhi, India.India's Prime Minister Manmohan Singh inaugurated the system on 19 November 2013 on the occasion of the 94th birth anniversary of former Indian Prime Minister Indira Gandhi.

Headquarter – New Delhi. Bank will get an initial capital of Rs 1,000 crore. Usha Ananthasubramanian – The First CEO/Chairperson of Bhartiya Mahila Bank

17. What is IFSC (Indian Financial System Code)?

Ans:

• Indian Financial System Code is an alpha-numeric code that uniquely identifies a bank-branch participating in the NEFT system.

• This is an 11 digit code with the first 4 alpha characters representing the bank, The 5th character is 0 (zero).and the last 6 characters representing the bank branch.

• IFSC is used by the NEFT system to identify the originating / destination banks / branches and also to route the messages appropriately to the concerned banks / branches.

18. What is MICR ?

Ans : MICR is Stands for Magnetic Ink Character Recognition. MICR Code is a numeric code which uniquely identifies a bank branch participating in the ECS Credit scheme. MICR code consists of 9 digits e.g 400229128

• First 3 digits represent the city (400)

• Next 3 digits represent the bank (229)

• Last 3 digits represent the branch (128)

The MICR Code allotted to a bank branch is printed on the MICR band of cheque leaves issued by bank branches.

19. What is Balance Sheet ?

Ans : A financial statement that summarizes a company's assets, liabilities and shareholders' equity at a specific point in time. These three balance sheet segments give investors an idea as to what the company owns and owes, as well as the amount invested by the shareholders.

The balance sheet must allow the following formula: Assets = Liabilities + Shareholders' Equity

20. What is Direct & Indirect Tax ?

Ans: A direct tax is that which is paid directly by someone to taxing authority. Income tax and property tax are an examples of direct tax. They are not shifted to somebody else.

Indirect Tax: This type of tax is not paid by someone to the authorities and it is actually passed on to the other in the form of increased cost. They are levied on goods and services produced or purchased. Excise Tax, Sales Tax, Vat, Entertainment tax are indirect taxes.

21. What is FDI ?

Ans FDI is Foreign direct investment (FDI) is a direct investment into production or business in a country by an individual or company of another country, either by buying a company in the target country or by expanding operations of an existing business in that country. Foreign direct investment is in contrast to portfolio investment which is a passive investment in the securities of another country such as stocks and bonds.

22. What is FII?

FII: Foreign institutional investors (FIIs) are those institutional investors which invest in the assets belonging to a different country other than that where these organizations are based.