Banking interview questions and answers

          

Banking interview questions and answers

Bank Exam > Banking Interview Questions

Banking in India is growing at a fast pace and offers huge job opportunities. The recruitment process involves written test and interview. Here, we are providing most frequently asked banking interview questions with answers. These banking interview questions are simple and easy to grasp with detailed solutions.

Bank personal interview questions and answers

1. Tell me something about yourself?
2. Where have you come from and what is famous in your city?
3. Why do you want to join the banking industry?
4. After doing B.Sc/B,tech/MBA/MA why do you want to choose banking? Why not something related with you field of education?
5. Tell us something about the 27th or latest public sector bank in India.
6. What do you understand by the GDP of the country?
7. What is a Non -banking Financial Company (NBFC)? Difference between NBFC and banks?
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Banking structure questions and answers for bank recruitment

What is the major functions of any bank?
In how many types you may categorize the bank in India?
What are Co-operative banks?
Name the financial institution built by Industrial Development Bank of India (IDBI)?
Which kind of operations are included in treasury operations?
Which Act allows the bank and financial institutions to auction the properties when borrower fails to repay the loans?
What is SWIFT?
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RBI and its role questions and answers for bank recruitment

What are the main functions of RBI?
What are RBI monetary policy objectives?
What is cash reserve ratio (CRR)?
What is Statutory Liquidity Ratio (SLR)?
What is Liquidity Adjustment Facility?
Which is the new instrument launched by RBI to protect the saving of poor and middle class people from inflation and insensitive household sectors. What are the general techniques used by SCCs?
Name the rating system given by RBI for the banking sector?
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Capital Market

What are the instruments of money market?
Categorize the “Industrial Security Market”
What is “Gilt-Edged Market”?
Name the participants of CBLO?
What is “STRIPS”?
What are the various forms of derivative instruments?
Name the financial institutions that provide credit to various sectors of economy?
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Banking Operations

Name some negotiable instruments.
What are the features of Negotiability?
What is Promissory Note (PN)? How many parties are required in Promissory Notes?
What are “Inland bills”?
What is “Accommodation Bill”?
How is Cheque is different from BoE?
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Banking Finance and Economy

What are the effects of “Inflation”?
What is non-performing assets (NPA)?
What are the three parameters on which CAR depends?
What are the advantages of “Off-shore Banking”?
What are the indicators of good SHGs (Self Help Groups)?
What is “Laghu Udhami Credit Card (LUCC) Scheme and its features?
What is Credit Guarantee Funds for SSIs and its features?
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Public Finance and Budget process

What points are covered in the “Annual Financial Statement”?
How is the “Budget” processed?
What are “Revenue Receipts”?
What do you mean by “Non-plan Expenditure”?
What is “Public Account Fund”?
What is “Revenue of Central Government”?
What are different types of “Non-tax receipts.”?
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Banking interview – Areas emphasized upon by the panel and questions asked

What should you wear to a Bank Interview?

1. The recession occurring twice in quick succession/gap is known as

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ANSWER: Double Dip Recession

2. The CRR, Cash Reserve Ratio of scheduled banks is fixed at a certain percentage of their NDTL. What is NDTL?

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ANSWER: Net Demand and Time Liabilities

3. What is NAV in Mutual funds?

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ANSWER: Net Asset Value

4. What is the full form of Swift?

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ANSWER: Society for world wide Inter bank Financial Telecommunication

5. What happens when Reserve Bank of India reduces the Bank Rate by 1%?

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ANSWER: More Liquidity in the Market

6. A system of “Fiat Money” is being used in India. What is that?

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ANSWER: The currency is backed by government guarantee

7. What is Moratorium?

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ANSWER: Initial repayment holiday given to a borrower for repayment of loan

8. What is meant by “underwriting”?

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ANSWER: The act of taking a risk for a fee

9. The rate of interest charged by RBI for lending money to banks by rediscounting of the bills in India.

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ANSWER: Bank Rate

10. What is NPA in bank terminology?

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ANSWER: Non-Performing Assets

11. What is ALM in banking sector?

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ANSWER: Asset liability management

12. The Act is passed to prevent efforts to bing money earned through illegal activities in circulation.

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ANSWER: Prevention of Money Laundering Act

13. The organization provides guarantee to the exporters

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ANSWER: Export credit Guarantee Corporation

14. What is IRR?

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ANSWER: Internal Rate of Return

15. Significance of organization CIBIL.

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ANSWER: Provides credit history of the borrowers

16. A nationalized bank is also called as

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ANSWER: Public sector bank

17. What do you call the minimum rate decided by RBI which shall be adopted by all Public sector banks?

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ANSWER: Base Rate

18. Banking sector falls under sector –

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ANSWER: Service sector

19. What do we call an account in which trading of shares in their electronic form is done?

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ANSWER: Demat Account

20. When one party enjoys credit facilities by more than one banks who works in coordination with each other under a formal arrangement, such arrangement is known as __________

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ANSWER: Consortium

21. What do we call when a bank dishonors a cheque.

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ANSWER: Return of the cheque unpaid

22. ______________________ is the fund that is created to be used as relief funds or bailouts packages.

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ANSWER: Sovereign Funds

23. The assets have stopped giving income to a bank.

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ANSWER: Non-performing assets

24. What is EFT?

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ANSWER: Electronic fund transfer

25. In which bank the government of India has acquired RBO’s stake?

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ANSWER: State bank of India

26. __________________ is the amounts owed to a company that are not going to be paid

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ANSWER: Bad debts

27. Who regulates the Mutual Funds in India?

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ANSWER: SEBI

28. ________________________ is the instrument that cannot be transferred from one person to another by Endorsement.

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ANSWER: Fixed Deposit Receipts

29. Central Monetary Authority of India is

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ANSWER: RBI

30. Urban co-operative banks are controlled by

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ANSWER: State government and RBI



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M.ASHOK 05-27-2015 02:26 AM

 

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