1.What is Balance of Trade?
The value of a country’s exports minus the value of its imports. Unless specified as the balance of merchandise trade, it normally incorporates trade in services, including earnings (interest, dividends, etc.) on financial assets.
2.What is bank? What are the types of banks?
A bank is a financial institution licensed as a receiver of cash deposits. There are two types of banks, commercial banks and investment banks. In most of the countries, banks are regulated by the national government or central bank.
3.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 wide range of career opportunities for graduates. So I want to take an opportunity to join in a bank.
4.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.
5.What are the challenges for banking sector of India?
As it is banking sector, it has to face social and economic factors which leads to economic growth for developed and under developed countries. Mainly banking is solid foundation and meet needs of industry and commerce. Every sector has its own kind of challenges to face when it comes to banking sector its challenges are very high. if you see some development in India it’s because of banking sector cause its contribution to economy is maximum.
6.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).
7.What is investment banking?
Investment banking manages portfolios of financial assets, commodity and currency, fixed income, corporate finance, corporate advisory services for mergers and acquisitions, debt and equity writing etc.
8.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).
9.What is Balanced Trade?
When A balance of trade equal to zero. (exports-imports=0)
10.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.
BPS (Basis point) : – BPS is an acronym for basic points is used to indicate changes in rate of interest and other financial instrument.
11. 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.
12.What is commercial bank?
Commercial bank is owned by the group of individuals or by a member of Federal Reserve System. The commercial bank offer services to individuals, they are primarily concerned with receiving deposits and lending to business. Such bank earns money by imposing interest on the loan borrowed by the borrower. The money that is deposited by the customer will be used by the bank to give business loan, auto loan, mortgages and home repair loans.
13.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
14.What is the difference between Cheque and Demand Draft?
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.
15.What is probability officer and its duties and responsibilities?
The Main role of Probationary officer in a banking is to maintain the operation in all levels of banking and he holds the position period up to the bank’s rule.After Completion of trining only you have the Responsibilities under which u have to be Promoted.po post in banking system is to maintain al the activities related to bank.works like custor oriented as created deposite from the custor,giving loan to the customers,opening any type of a/c,increasing the customer by convincing it,maintaning the cash in the drawer,voucher authoriation,day to day generating the reports,npa recovery,telling government scheme to the cutomers and many more like all the brach operation.
16.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.
17.What is Balance of merchandise trade?
The value of a country’s merchandise exports minus the value of its merchandise imports.
18.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-
2. Proof of identity
19.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.
20.Who are our major competitors and what differences do you notice in our Bankings products?
The company will be expecting that you have done your research on the industry generally. You should be familiar with the bank’s products and services – literature on these can be picked up at any branch. Read the banks brochures and annual reports – these may be in the careers information room.Be aware of current trends in the market and try to find out what each bank is doing in these areas.Insurance and Mutual Fund sectors are competitiors to banking industry. Banking products are different than those prodcuts as banking products assure rewards on investment where as others can’t gve any assurance.
21.What are the types of Commercial Banks?
a) Retail or consumer banking:It is a small to mid-sized branch that directly deals with consumer’s transaction rather than corporate or other banks
b) Corporate or business banking:Corporate banking deals with cash management, underwriting, financing and issuing of stocks and bonds
c) Securities and Investment banking:Investment banking manages portfolios of financial assets, commodity and currency, fixed income, corporate finance, corporate advisory services for mergers and acquisitions, debt and equity writing etc.
d) Non-traditional options:There are many non-bank entities that offer financial services like that of the bank. The entities include credit card companies, credit card report agencies and credit card issuers
22.What is a favorable balance of trade?
It is the difference between exports and imports. Debit items include imports, foreign aid, domestic spending abroad and domestic investments abroad. Credit items include exports, foreign spending in the domestic economy and foreign investments in the domestic economy. A country has a trade deficit if it imports more than it exports; the opposite scenario is a trade surplus.
23.How do you Handle Pressure?
High achievers tend to perform well in high pressure situations. These questions also could imply that the position is pressure packed. If you do perform well under stress provide an example with details giving an overview of the stressful situation. Let the interviewer feel the stress by your description.In such a stressful situation first you would try to be focussed and strategically plan to arrive at the best and logical decision, which the situation would require.
24.What is Balance of Payments?
A list, or accounting, of all of a country’s international transactions for a given time period, usually one year. Payments into the country (receipts) are entered as positive numbers, called credits; payments out of the country (payments) are entered as negative numbers called debits. A single number summarizing all of a country’s international transactions: the balance of payments surplus.
25.What are the types of accounts in banks?
a) Checking Account: You can access the account as the saving account but, unlike saving account, you cannot earn interest on this account. The benefit of this account is that there is no limit for withdrawal.
b) Saving Account: You can save your money in such account and also earn interest on it. The number of withdrawal is limited and need to maintain the minimum amount of balance in the account to remain active.
c) Money Market Account: This account gives benefits of both saving and checking accounts. You can withdraw the amount and yet you can earn higher interest on it. This account can be opened with a minimum balance.
d) CD (Certificate of Deposits) Account: In such account you have to deposit your money for the fixed period of time (5-7 years), and you will earn the interest on it. The rate of interest is decided by the bank, and you cannot withdraw the funds until the fixed period expires.
26.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.
27.Where have you saved money handled more with less or found other ways to cut cost or increase productivity?
Describe your actions with a positive can-do attitude. Most organizations face these same issues and your proven success will make a good impression. Be specific and describe your successes in quantifiable terms. Share those achievements where you increased revenue reduced costs improved quality of care or otherwise improved the bottom line. Know the positive impact you have made for your current and past organizations. Well articulated, these answers can land your next opportunity.
28.What is consumer bank?
Consumer bank is a new addition in the banking sector, such bank exist only in countries like U.S.A and Germany. This bank provides loans to their customer to buy T.V, Car, furniture etc. and give the option of easy payment through instalment.
29.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.
30.What are the different ways you can operate your accounts?
You can operate your bank accounts in different ways like
- a) Internet banking
- b) Telephone or Mobile banking
- c) Branch or Over the counter service
- d) ATM ( Automated Teller Machine)
31.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.
32.What are the different ways you can operate your accounts?
You can operate your bank accounts in different ways like
a) Internet banking
b) Telephone or Mobile banking
c) Branch or Over the counter service
d) ATM ( Automated Teller Machine)
33.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.
34.What are the things that you have to keep in concern before opening the bank accounts?
Before opening a bank account, if it is a saving account, you have to check the interest rate on the deposit and whether the interest rate remains consistent for the period. If you have the checking account, then look for how many cheques are free to use. Some banks may charge you for using paper cheques or ordering new cheque books. Also, check for different debit card option that is provided on opening an account and online banking features.