General Bank Interview Questions

SBI and IBPS interview Question

1.)What is a Repo Rate?

Ans-Whenever the banks have any shortage of funds they can borrow it from RBI. Repo rate is the rate at which our banks borrow rupees from RBI. A reduction in the repo rate will help banks to get money at a cheaper rate. When the repo rate increases borrowing from RBI becomes more expensive

2.)What is the difference between Cheque and Demand Draft?

Ans-A cheque is issued by a person from his personal account. The bank will not honour the cheque if sufficient balance is not there in your account .But A demand draft is issued by a bank only when the amount of draft plus commission has been paid to bank upfront and in this case the payment against the bank draft is guaranteed by the issuing bank. The bank draft is as good as cash.

3.)What is the Use of Computers in a Bank?

Ans-It’s easier to access or change the information compared to the old fashioned way of writing it on a piece of paper and placing it in a filing cabinet. Modern computers can store so much more information nowadays. An employee can also check a customer’s account balance instantly. Accounting software makes it easier for businesses.Of course, the simplest way is for number crunching. Computers can solve billions of complex mathematical operations in fractions of a second.

4.)What is IPO?

Ans-Initial Public Offer (IPO) is a source of collecting money from the public for the first time in the market to fund for its projects. In return, the company gives the share to the investors in the company

5.) What is GDP?

Ans-GDP is the total market value of all final goods and services produced in a country in a given year which is equal to total consumer, investment and government spending, plus the value of exports, minus the value of imports. Gross Domestic Product (GDP) can be estimated in three ways which are Expenditure basis,Output basis,Income basis.

6.)What is GNP?

Ans-GNP is an estimated value of the total worth of production and services, by citizens of a country, on its land or on foreign land, calculated over the course on one year.

7.)What is Deposit Rate?

Ans-Deposit Rate is the interest rate paid by financial institutions to deposit account holders.

8.)What is Disinvestment?

Ans-The Selling of the government stake in public sector undertakings.

9.)What is Fiscal Deficit?

Ans-The difference between total revenue and total expenditure of the government is termed as fiscal deficit.

10.)What is Online Banking?

Ans-Online banking is a electronic payment system also referred as Internet banking, e-banking, virtual banking and by other terms.Which enables customers of a financial institution to conduct financial transactions on a website operated by the institution.

11.)What is Revenue deficit?

Ans-A mismatch in the expected revenue and expenditure can result in revenue deficit.

12.)What is banks its features and its types?

Ans-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.

13.)What is SENSEX and NIFTY?

Ans-The Sensex is an indicator of all the major companies of the BSE.
The Nifty is an indicator of all the major companies of the NSE.

14.) What is Recession?
Ans-Recession is a slowdown or a massive contraction in economic activities. A significant fall in spending generally leads to a recession.

15.) Who are the deputy governors of RBI?

Ans-Raghuram Rajan

16.)What are the functions of RBI?

Ans-1. Issue of Banknotes
2. Banker to Government
3. Custodian of Cash Reserves of Commercial Banks
4. Custodian of Country’s Foreign Currency Reserves
5. Lender of Last Resort
6. Central Clearance and Accounts Settlement
7. Controller of Credit

17.)What are the basics of Monetary policy?

Ans-It is a process by which monetary authority such as central bank handle the supply of money in the economy by its control over interest rates in order to maintain price stability and achieve high economic growth.

18.)What are the important products or schemes launched by various banks recently?

Ans-TAB BANKING FACILITY = SBI
BOUTIQUE FINANCING SCHEME = SBI
Twitter Handle account = SBI
Asha Home loan = AXIS BANK
Airtel money = AXIS BANK+AIRTEL
Kisan card = AXIS BANK
M-Pesa = ICICI+Vodafone
Branch on Wheel = ICICI Bank in odisha
I-Mobile app for windows phone = ICICI
Instant money transfer = BOI
M-Wallet = Canara Bank
E-Wallet = IRCTC
Student Travel Card = ICICI
E-KYC = SBI
State Bank Freedom App – State Bank of India

19.)What is LAF ?

Ans-Liquidity adjustment facility is a tool or monetary policy tool which allows banks to borrow money through repurchase agreements.In adjusting the day to day mismatches in liquidity LAF is used.

20.)CORE stands for?

Ans-CORE Banking may stand for “centralized online real-time exchange”.

21.)What is ‘Green Channel’ facility?

Ans-The way through customs for people who are not bringing goods into the country on which they have to pay tax.

22.)What is PO’s?

Ans-A person who is newly recruited as an officer will be under probation period for at least 2 years.During this phase, he/ she undergoes training performs the allotted work.Since candidates join the bank at a junior level, they are being called Probationary Officer (PO) but the actual designation could be assistant manager.

23.)What Is Plastic Money?

Ans-Plastic money is a term that is used as hard plastic cards we use in our daily routine in place of actual bank notes.Which is in different forms such as cash cards, credit cards, debit cards, prepaid cash cards and store cards.

24.)What Is Cash Cards?

Ans-Cash card are the plastic cards that will allow you to withdraw money from your bank via an ATM machine but the card holder to purchase doesn’t purchase anything directly with it.

25.)What Is Credit Cards?

Ans-Credit Cards are the cards provided by the bank to the cardholders,in which can holder withdraw cash from ATM and also purchase goods and services directly from the credit card.

26.)What Is Debit Cards?

Ans-Debit Cards is also a plastic card which in which money is debited directly from your bank account.Their is no official credit facility used in the case of Debit card as used in Credit Cards.

27.)What is an ATM?

Ans-An ATM is a computerized machine in which without human interaction customers can dispense cash. The ATM can also take deposits,transfer money between bank accounts and provide other basic financial services.

28.)What is a fixed deposit?

Ans-Fixed Deposit financial instrument where savings account or certificate of deposit that pays a fixed rate of interest until a given maturity date. Funds placed in a Fixed Deposit usually cannot be withdrawn prior to maturity or they can perhaps only be withdrawn with advanced notice and/or by having a penalty assessed.

29.)What is a gift card?

Ans-A gift card like a credit card, with a magnetic strip on the back that logs the amount of money that the card holds. The recipient can use it like a credit card, spending up to the card’s value at the store designated on the gift card or, if no specific store is named, whenever he or she chooses.

30.)What Is foreign exchange reserves?

Ans-Holding the currencies of other countries as assets allow governments to keep their currencies stable and reduce the effect of economic shocks. The use of foreign exchange reserves became popular after the decline of the gold standard.This is the deposit of a foreign currency held by a central bank.

31.)What is e-commerce?

Ans-Ecommerce stands for Electronic commerce is a term for any type of business.In which commercial transaction and information transfer across the Internet.

32.)What is m-commerce?

Ans-M-commerce stands for Mobile commerce,In which is the buying and selling of goods and services are completed through wireless handheld devices such as cellular telephone and personal digital assistants (PDAs).

33.)What is marketing?

Ans-Marketing is the action or business of promoting and selling products or services, including market research and advertising.

34.)Why did you want to join Banking Sector?

Ans- Banking Sector is the fastest growing sector which provide the opportunity to the career builders like me. I need stability in my life and banking industry is growing very quickly.Banking industry will give growth as well stability.I am also well versed with computer knowledge that is now a MUST in Banking like MS Excel, MS Word, etc.

35.)What is a Bank?

Ans- A bank is a financial institution that accepts money from it’s customers for the purpose of lending.
36.)What is Money Laundering?

Ans- Money laundering means presenting an illegally obtained money as legitimate by creating a complex chain of sub processes. This convoluted chain makes it difficult to trace the source of the illegitimate money.

37.)What is FDI?

Ans- FDI is stands for Foreign Direct Investment in which an investment is made in a business by an investor of any other country and the foreign investor has control over the company purchased

38.)Why do you want to be a P.O.?

Ans- I am 23 right now. If I join as a PO at this age, by the age of 40, I can be at high position. That’s goal of my life.

39.)What are open market operations?

Ans-This is the policy by which Buying and selling of government securities and bonds in open market by Government to maintain desired liquidity levels.

40.)What are various services provided by a commercial bank ?

Ans-1.)Lockers
2.)Safe custody of funds
3.)Advancing loans
4.)Fund transfers
5.)Periodic payments
6.)Underwriting of shares
7.)Dealing in foreign exchange
8.)Discounting of loans
9.)Overdraft

41.)What is PPF?

Ans- Public Provident Fund which is a tax saving investment for individuals.

42.)What are NPAs?

Ans- NPA stands for Non-Performing Assets.Bank gives loans and advances to it’s customers. These loans and advances are bank’s assets. When the customers don’t repay back the bank’s money they don’t perform. Such assets are known as Non-Performing Assets.

43.)What is Service Tax?

Ans-A service tax is levied by Central Government of India on the certain service providers

44.)What is Mutual Fund ?

Ans- Mutual Fund is a pool of fund in which all investors invests their money for a common objective or purpose.

45) What is National Income?

Ans.During the year the money value of all goods produced by a company is called National Income.

46) What is RuPay card?
Ans-RuPay card is a domestic card payment network conducted by the National Payments Corporation of India (NPCI) .It is a combination of two words – Rupee and Payment. RuPay Card is an Indian version of credit/debit card and its working is similar to international cards such as Visa/Master.

47) What is Private Banking?

Ans-Private Banking are those banks in which banking services are offered by high net-worth by the individuals.Financial Institutions offering Private Banking earns commission by providing quality assistance to their high net-worth customers in investing their money. By Private, we mean that the services are provided and tailored on a more personal basis.

48) What is the difference between Nationalize Bank and Private bank?

Ans- A Nationalised bank is any commercial bank which is controlled by the government and and very low risk. Private banks are owned, controlled and managed by an individual or conducted by a partnership having many investors, locally or internationally.

49) What is Inflation?

Ans- Inflation is as an rise in the price of goods services that projects the Indian economy over a period of time .This rise in prices means the demand for these goods and services exceeds their supply.

50) What is Deflation?

Ans- Deflation is the decline in prices of goods and services.That means too many goods are available or when there is not enough money circulating to purchase those goods.

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