03/08/2022
TOP 60 BANK INTERVIEW QUESTIONS
*********
1. Why do you want to join banking sector?
Banking is one of the fastest growing sectors in # Ethiopia with more stable and high growth and more
over providing wide range of career opportunities
for graduates. So I want to take an opportunity
to join in a bank.
2. What is the difference between Cheque and
Demand Draft?
Cheque: Cheuqe is a negotiable instrument
instructing a bank to pay a specific amount from
a specific account held in the maker/depositor
name with that Bank.
Demand Draft: A demand draft is an instrument
used for effecting transfer of money. It is a
negotiable instrument.
3. What is a Non-Banking Financial Company
(NBFC)?
A Non-Banking Financial Company (NBFC) is a
company registered under the Companies Act,
1956 engaged in the business of loans and
advances, acquisition of shares/stocks/bonds/
debentures/securities issued by Government or
local authority or other marketable securities of a
like nature, leasing, hire-purchase, insurance
business, chit business but does not include any
institution whose principal business is that of
agriculture activity, industrial activity, purchase
or sale of any goods (other than securities) or
providing any services and sale/purchase/
construction of immovable property. A non-
banking institution which is a company and has
principal business of receiving deposits under
any scheme or arrangement in one lump sum or
in installments by way of contributions or in any
other manner, is also a non-banking financial
company (Residuary non-banking company).
4. NBFCs are doing functions similar to banks.
What is difference between banks & NBFCs ?
NBFCs lend and make investments and hence
their activities are akin to that of banks;
however there are a few differences as given
below:
NBFC cannot accept demand deposits;
NBFCs do not form part of the payment and
settlement system and cannot issue cheques
drawn on itself; deposit insurance facility of
Deposit Insurance and Credit Guarantee
Corporation is not available to depositors of
NBFCs, unlike in case of banks.
5 . What is Private Banking?
Banking services offered to high net-worth
individuals. Private banking institution assists the
high net-worth individual in investing his/her
money in exchange for commissions and fees.
The term "private" refers to the customer
service being rendered on a more personal basis.
6. What is BSBDA?
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 BPS (Basis Points)?
BPS (Basis point) : - BPS is an acronym for basic
points is used to indicate changes in rate of
interest and other financial instrument.
1 BASIC POINT IS EQUAL TO 0.01%
So when we say that repo rate has been
increased by 25 bps, it means that the rate has
been increased by 0.25%
8. What is KYC?
The Reserve Bank of India (RBI) has advised
banks to follow ‘KYC guidelines’, wherein certain
personal information of the account-opening
prospect or the customer is obtained. The
objective of doing so is to enable the Bank to
have positive identification of its customers. This
is also in the interest of customers to safeguard
their hard earned money.
The KYC guidelines of RBI mandate banks to
collect three proofs from their customers. They
are-
1.Photograph
2. Proof of identity
3.Proof of address
9. What is Sub-prime crisis?
The current Subprime crisis is due to sub-prime
lending. These are the loans given to the people
having low credit rating.
10. What is Base Rate?
It is the minimum rate of interest that a bank is
allowed to charge from its customers. Unless
mandated by the government, RBI rule stipulates
that no bank can offer loans at a rate lower than
BR to any of its customers.
It is effective from, July 1, 2010. However, all
existing loans, including home loans and car
loans, will continue to be at the current rate.
Only the new loans taken on or after July 1 and
old loans being renewed after this date will be
linked to BR.
11. What is SWIFT?
SWIFT :- Society for worldwide Interbank
financial tele- communication.
India was 74th Nation to join SWIFT Network.
SWIFT Code is a standard format of bank
Identifier code. This code is used particularly in
International transfer of money between banks.
A majority of FOREX related message are sent
to correspondent banks abroad through SWIFT.
SWIFT Code consist 8 or 11 character when code
is 8 digit, It is referred to primary office
4 – bank code
2 – country code
2 – location code
3 – branch code (optional).
12. What is Swabhimaan Yojana?
Swabhimaan is a financial inclusion plan of bank
to take banking to the door steps of the remote
village where banking facility are not available.
13. What is NOSTRO and VOSTRO account?
NOSTRO Account: A NOSTRO account is
maintained by an Indian bank in the foreign
countries.
VOSTRO Account: a vostro a/c is maintained by
a foreign bank in India with their corresponding
bank.
14. What is a DeMat Account?
DeMat is nothing but a dematerialized account.
If one has to save money or make cheque
payments, then he/she needs to open a bank
account. Similarly, one needs to open a DeMat
account if he/she wants to buy or sell stocks.
Thus, DeMat account is similar to a bank
account wherein the actual money is being
replaced by shares. In order to open a DeMat
account, one needs to approach the Depository
Participants [DPs].
In India, a DeMat account is a type of banking
account that dematerializes paper-based physical
stock shares. The DeMat account is used to
avoid holding of physical shares: the shares are
bought as well as sold through a stock broker. In
this case, the advantage is that one does not
need any physical evidence for possessing these
shares. All the things are taken care of by the
DPs.
This account is very popular in India. Physically
only 500 shares can be traded as per the
provision given by SEBI. From April 2006, it has
become mandatory for any person holding a
DeMat account to possess a Permanent Account
Number (PAN).
15. What is RuPay Card?
RuPay is the Indian domestic card payment
network set up by National Payments Corporation
of India (NPCI) at the behest of banks in India.
The RuPay project had been conceived by Indian
Banks Association (IBA) and had the approval of
Reserve Bank of India (RBI).
RuPay LogoNational Payments Corporation of
India (NPCI) has a plan to provide a full range of
card payment services including the RuPay ATM,
RuPay MicroATM, Debit, Prepaid and Credit
Cards which will be accepted in India and
abroad, across various channels like POS,
Internet, IVR and mobile etc.
The initial focus of NPCI would be to approach
those banks who have not been issuing any
payment card at all more specifically – Regional
Rural Banks (RRBs) and urban co-operative
banks.
All Public Sector Undertakings (PSU) banks set
to join RuPay system by the end of year 2012.
RuPay-based debit cards can be used by the
consumers on the Internet from September,
2012.
The government of India had launched India’s
first domestic payment card network, RuPay, to
compete with Visa Inc and Mastercard Inc.
16. What is foreign exchange reservers?
Foreign exchange reserves (also called Forex
reserves) in a strict sense are only the foreign
currency deposits and bonds held by central
banks and monetary authorities.However,
in popular usage commonly includes foreign
exchange and gold,SDRs and IMF reserve
positions.
17. What is Bancassurance ?
Bancassurance stands for distribution of
financial products particularly the insurance
policies (both the life and non-life), also called
referral business, by banks as corporate agents,
through their branches located in different parts
of the country.
18. What is Money Laundering ?
Money laundering is the processes of concealing
the source of obtain money. Money or funds
obtained through illegal activities are presented
as legitimate.
19. What is the difference between Nationalized
bank and Private Bank ?
A Nationalized bank is one that is owned by the
government of the country. Since the people
decide who the government is, they are also
referred to as public sector banks. The
government is responsible for the money
deposited into the accounts of these banks.
Where as a private sector bank is one that is
owned by an independent individual or a
company that is controlled by a few individuals.
In short, the bank is owned by someone else and
they run the bank. The person owning/running
the bank is responsible for the money deposited
into the accounts of these banks.
20. What are non-perfoming assets?
A classification used by financial institutions that
refer to loans that are in jeopardy of default.
Once the borrower has failed to make interest or
principal payments for 90 days the loan is
considered to be a non-performing asset.
Also known as "non-performing loan".
21. What is the Functions of RBI?
The Reserve Bank of India is the central bank of
India, was established on April 1, 1935 in
accordance with the provisions of the Reserve
Bank of India Act, 1934.
The Reserve Bank of India was set up on the
recommendations of the Hilton Young
Commission. The commission submitted its
report in the year 1926, though the bank was not
set up for nine years.To regulate the issue of
Bank Notes and keeping of reserves with a view
to securing monetary stability in India and
generally to operate the currency and credit
system of the country to its advantage." Banker
to the Government: performs merchant banking
function for the central and the state
governments; also acts as their banker.Banker
to banks: maintains banking accounts of all
scheduled banks.
21. What is monetary policy?
A Monetary policy is the process by which the
government, central bank, of a country controls
(i) the supply of money,
(ii) availability of money, and
(iii) cost of money or rate of interest, in order to
attain a set of objectives oriented towards the
growth and stability of the economy.
22. What is SEZ?
SEZ means Special Economic Zone is the one of
the part of government’s policies in India. A
special Economic zone is a geographical region
that economic laws which are more liberal than
the usual economic laws in the country. The
basic motto behind this is to increase foreign
investment, development of infrastructure, job
opportunities and increase the income level of
the people.
23. What is SIDBI?
The Small Industries Development Bank of India
is a state-run bank aimed to aid the growth and
development of micro, small and medium scale
industries in India. Set up in 1990 through an act
of parliament, it was incorporated initially as a
wholly owned subsidiary of Industrial
Development Bank of India.
24. What is TREASURY BILLS (TB)?
Treasury bills (T-Bills) are the short term
liabilities of the central government .theoretically
government of India issued three types of T-bills
through auctions, namely 91 days, 182days,and
364 days. There are no treasury bills issued by
state government. Minimum amount of T –Bills
is Rs. 2500and in multiple of RS. 2500.T-bills are
issued at a discount and are redeemed at par
from 1st April 1997 treasury bills have been
replaced by WAYS AND MEANS ADVANCES .
25. What is COMMERCIAL PAPER (CP)?
commercial paper was introduced by RBI in
1991. It is a short term money market instrument
issued in the form of promissory
"Base Lending Rate" to
refer to their Prime Lending Rate.
37. what is Bitcoin?
Bitcoin is a consensus network that enables a
new payment system and a completely digital
money. It is the first decentralized peer-to-peer
payment network that is powered by its users
with no central authority or middlemen. From a
user perspective, Bitcoin is pretty much like cash
for the Internet. Bitcoin can also be seen as the
most prominent triple entry bookkeeping system
in existence.
38. What is SLR Rate?
SLR (Statutory Liquidity Ratio) is the amount a
commercial bank needs to maintain in the form
of cash, or gold or govt. approved securities
(Bonds) before providing credit to its customers.
SLR rate is determined and maintained by the
RBI (Reserve Bank of India) in order to control
the expansion of bank credit. SLR is determined
as the percentage of total demand and
percentage of time liabilities. Time Liabilities are
the liabilities a commercial bank liable to pay to
the customers on their anytime demand. SLR is
used to control inflation and propel growth.
Through SLR rate tuning the money supply in the
system can be controlled efficiently.
39. What is Deposit Rate?
Interest Rates paid by a depository institution on
the cash on deposit.
40. What is Fiscal Policy?
Fiscal policy is the use of government spending
and revenue collection to influence the economy.
These policies affect tax rates, interest rates and
government spending, in an effort to control the
economy. Fiscal policy is an additional method
to determine public revenue and public
expenditure.
41. What is the Banking Ombudsman Scheme?
The Banking Ombudsman Scheme enables an
expeditious and inexpensive forum to bank
customers for resolution of complaints relating to
certain services rendered by banks. The Banking
Ombudsman Scheme is introduced under Section
35 A of the Banking Regulation Act, 1949 by RBI
with effect from 1995.
42. Which are the banks covered under the
Banking Ombudsman Scheme, 2006?
All Scheduled Commercial Banks, Regional Rural
Banks and Scheduled Primary Co-operative
Banks are covered under the Scheme.
43. What is Inflation?
Inflation is as an increase in the price of bunch
of Goods and services that projects the Indian
economy. An increase in inflation figures occurs
when there is an increase in the average level of
prices in Goods and services. Inflation happens
when there are fewer Goods and more buyers;
this will result in increase in the price of Goods,
since there is more demand and less supply of
the goods.
44. What is Deflation?
Deflation is the continuous decrease in prices of
goods and services. Deflation occurs when the
inflation rate becomes negative (below zero) and
stays there for a longer period.
45. What is FII?
FII (Foreign Institutional Investor) used to denote
an investor, mostly in the form of an institution.
An institution established outside India, which
proposes to invest in Indian market, in other
words buying Indian stocks. FII's generally buy in
large volumes which has an impact on the stock
markets. Institutional Investors includes pension
funds, mutual funds, Insurance Companies,
Banks, etc.
46. What is FDI?
FDI (Foreign Direct Investment) occurs with the
purchase of the “physical assets or a significant
amount of ownership (stock) of a company in
another country in order to gain a measure of
management control” (Or) A foreign company
having a stake in a Indian Company.
47. What is IPO?
IPO is Initial Public Offering. This is the first
offering of shares to the general public from a
company wishes to list on the stock exchanges.
48. What is GDP?
The Gross Domestic Product or GDP is a
measure of all of the services and goods
produced in a country over a specific period;
classically a year.
49. What is GNP?
Gross National Product is measured as GDP plus
income of residents from investments made
abroad minus income earned by foreigners in
domestic market.
50. What is Revenue deficit?
It defines that, where the net amount taxes & other forms) fails to meet the
predicted net amount to be received by the
government.
51. What is Disinvestment?
The Selling of the government stake in public
sector undertakings.
52. What is Fiscal Deficit?
It is the difference between the government’s
total receipts (excluding borrowings) and total
expenditure.
53. What is National Income?
National Income is the money value of all goods
and services produced in a Country during the
year.
54. What is bank and its features and types?
A bank is a financial organization where people
deposit their money to keep it safe.Banks play
an important role in the financial system and the
economy. As a key component of the financial
system, banks allocate funds from savers to
borrowers in an efficient manner.
55. What are Mutual funds?
Mutual funds are investment companies that
pool money from investors at large and offer to
sell and buy back its shares on a continuous
basis and use the capital thus raised to invest in
securities of different companies. The mutual
fund will have a fund manager that trades the
pooled money on a regular basis. The net
proceeds or losses are then typically distributed
to the investors annually. A company that
invests its clients' pooled fund into securities
that match its declared financial objectives.
Asset management companies provide investors
with more diversification and investing options
than they would have by themselves. Mutual
funds, hedge funds and pension plans are all run
by asset management companies. These
companies earn income by charging service fees
to their clients.
56. What is Cheque?
Cheque is a negotiable instrument instructing a
Bank to pay a specific amount from a specified
account held in the maker/depositor's name with
that Bank.A bill of exchange drawn on a
specified banker and payable on demand.“Written
order directing a bank to pay money”.
57. What is demand Draft?
A demand draft is an instrument used for
effecting transfer of money. It is a Negotiable
Instrument. Cheque and Demand-Draft both are
used for Transfer of money. You can 100% trust
a DD. It is a banker's check. A check may be
dishonored for lack of funds a DD can not.
Cheque is written by an individual and Demand
draft is issued by a bank. People believe banks
more than individuals.
58. What is NABARD?
NABARD was established by an act of
Parliament on 12 July 1982 to implement the
National Bank for Agriculture and Rural
Development Act 1981. It replaced the
Agricultural Credit Department (ACD) and Rural
Planning and Credit Cell (RPCC) of Reserve Bank
of India, and Agricultural Refinance and
Development Corporation (ARDC). It is one of
the premiere agency to provide credit in rural
areas. NABARD is set up as an apex
Development Bank with a mandate for facilitating
credit flow for promotion and development of
agriculture, small-scale industries, cottage and
village industries, handicrafts and other rural
crafts.
59. What is SENSEX and NIFTY?
SENSEX is the short term for the words
"Sensitive Index" and is associated with the
Bombay (Mumbai) Stock Exchange (BSE). The
SENSEX was first formed on 1-1-1986 and used
the market capitalization of the 30 most traded
stocks of BSE. Where as NSE has 50 most
traded stocks of NSE.SENSEX IS THE INDEX OF
BSE. AND NIFTY IS THE INDEX OF NSE.BOTH
WILL SHOW DAILY TRADING MARKS. Sensex
and Nifty both are an "index”. An index is
basically an indicator it indicates whether most
of the stocks have gone up or most of the
stocks have gone down.
60. What is SEBI?
SEBI is the regulator for the Securities Market in
India. Originally set up by the Government of
India in 1988, it acquired statutory form in 1992
with SEBI Act 1992 being passed by the Indian
Parliament. Chaired by C B Bhave.
መረጃውን /ሸር በማድረግ ለሌሎችም ያካፍሉ።
አዳዲስ ትክክለኛ የሥራ ማስታወቂያ መረጃዎችን እና ሌሎችን ተጨማሪ ማስታወቂያዎች ለመከታተል ለምትፈልጉ በሙሉ
በቴሌግራም ቻናል...https://t.me/ethiovacancynet
በፌስቡክ ገፅ...https://m.facebook.com/ethiovacancy.net
👉👉👉ሼር ያድርጉ
👍👍👍ፔጃችንን ላይክ ያድርጉ
