IBPS will be conducting PO and RRB officer scale interview from January 2018. Candidates are preparing for the interview and taking coaching for the same. We are sharing important banking awareness questions with answers. You can also download these IBPS Bank Interview Questions and Answers in PDF format. In the last post, we were published Banking awareness top 100 questions. You may also check out IBPS PO Interview Tips (how to crack IBPS PO Interview) post.
- Why do you want to join banking sector?
Banking is one of the fastest growing sectors in India with more stable and high growth and more over providing a wide range of career opportunities for graduates. So I want to take an opportunity to join a bank.
- What is the difference between Cheque and Demand Draft?
- Cheque: Cheque 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 the transfer of money. It is a negotiable instrument.
- 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 the principal business of receiving deposits under any scheme or arrangement in one lump sum or installments by way of contributions or in any other manner is also a non-banking financial company (Residuary non-banking company).
- NBFCs are doing functions similar to banks. What is the 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 the 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.
Download IBPS PO Interview Questions PDF आईबीपीएस बैंक इंटरव्यू के लिए महत्वपूर्ण प्रश्न
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- 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 apply 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.
- What is BPS (Basis Points)?
- BPS (Basis point): – BPS is an acronym for basic points is used to indicate changes in the rate of interest and other financial instruments.
- 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%
- What is KYC?
- The Reserve Bank of India (RBI) has advised banks to follow ‘KYC guidelines’, wherein the 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-
- Photograph
- Proof of identity
- Proof of address
- What is the Sub-Prime crisis?
The current Subprime crisis is due to sub-prime lending. These are the loans given to the people having the low credit rating.
- 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.
IBPS PO Interview Questions – Banking Awarness
- 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 the International transfer of money between banks.
- A majority of FOREX related message are sent to correspondent banks abroad through SWIFT.
- SWIFT Code consists of 8 or 11 character when the code is eight digit; It is referred to the primary office 4 – bank code
- 2 – country code
- 2 – location code
- 3 – branch code (optional).
- What is Swabhimaan Yojana?
Swabhimaan is a financial inclusion plan of the bank to take banking to the door steps of the remote village where banking facility is not available.
- What are 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.
- 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. 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 the 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 is given by SEBI. From April 2006, it has become mandatory for any person holding a Demat account to possess a Permanent Account Number (PAN).
- What is the 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 the 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 the 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.
IBPS RRB Officer Scale Bank Interview Questions And Answers 2018
- 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, the term in popular usage commonly includes foreign exchange and gold, SDRs and IMF reserve positions.
- 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.
- What is Money Laundering?
Money laundering is the processes of concealing the source of obtaining money. Money or funds obtained through illegal activities are presented as legitimate.
- What is the difference between the 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.
- What are non-performing 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.”
Possible Bank Interview Questions and Answers 2018
- What are the Functions of RBI?
- The Reserve Bank of India is the central bank of India, was established on April 1, 1935, by 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 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. 29 What is the monetary policy?
- Monetary policy is a process by which the government, central bank, of a country controls
- (i) the supply of money,
- (ii) availability of money, and
- (iii) the cost of money or rate of interest, to attain a set of objectives oriented towards the growth and stability of the economy.
IBPS Interview Banking Question
What is the SEZ?
SEZ means Special Economic Zone is one of the parts 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.
- 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.
- What are 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. The 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.
Expected IBPS PO February Interview Questions in English
- What is COMMERCIAL PAPER (CP)?
Commercial paper was introduced by RBI in 1991. It is a short-term money market instrument in the form of a promissory note. Corporate; primary dealers and all India financial institution are eligible to issue CP. The maturity period of each commercial paper is 7days to 1year from the date of issue.CP can be issued denominations of Rs. 5lakh or multiples thereof. Only a schedule bank can act as an issuing and paying an agent (IPA) for the issuance of CP.
- What is CRM?
Customer Relationship Management (CRM) refers to the ability to understand, anticipate and manage the needs of the customer, interaction, and relationship resulting in increased profitability through revenue and margin growth and operational efficiencies.
- What is Right to information Act?
- The Right to Information act is a law enacted by the Parliament of India giving citizens of India access to records of the Central Government and State governments. The Act applies to all States and Union Territories of India, except the
- State of Jammu and Kashmir – which is covered under a State-level law. This law was passed by Parliament on 15 June 2005 and came fully into force on 13 October 2005.
- What is Recession?
A true economic recession can only be confirmed if GDP (Gross Domestic Product)growth is negative for a period of two or more consecutive quarters.
- What is dematerialization?
Dematerialisation is a process by which the paper certificates of an investor are taken back by the company/registrar and destroyed, and an equivalent number of securities are credited in electronic holdings of that investor.
- What is Derivative?
A derivative is a financial contract that derives its value from another financial product/commodity (say spot rate) called underlying (that may be a stock, stock index, a foreign currency, a commodity). The forward contract in the foreign exchange transaction is a simple form of a derivative.