IBPS PO Interview Questions and Answers

Q1. What is a Bank?
A bank is a financial institution that accepts money from its customers for the purpose of lending.

Q2. How is SLR determined?
SLR is calculated as the percentage of total demand and time liabilities, which a commercial bank is liable to pay to customers on their demand.

Q3. Why is SLR needed?
With SLR, the RBI can ensure solvency (creditworthiness) of a commercial bank. It also helps to control expansion of bank credits. By altering SLR rates, the RBI can increase or decrease bank credit expansion.

Q4. What is Public Provident Fund (PPF)?
Public Provident Fund (PPF) is a prominent long haul speculation alternative sponsored by Government of India which offers security with alluring loan cost and returns that are completely exempted from Tax .Investors can contribute least Rs. 500 to greatest Rs. 1,50,000 out of one budgetary year and can get the offices, for example, advance, withdrawal and expansion of record

Q5. What are the different Investments under 80(C)?

  • Fixed deposit (5 years)
  • PPF
  • Equity mutual funds
  • ELSS
  • EPF and VPF
  • NSCs (National Saving Certificate)
  • ULIPs
  • NPS (Pension plans)
  • Life insurance

Q6. What are the different functions of NABARD (National Bank of Agriculture and Rural Developments)
NABARD is a Development Bank with a mandate for providing and regulating credit and other facilities for the promotion and development of agriculture, small-scale industries, cottage and village industries, handicrafts and other rural crafts and other allied economic activities in rural areas with a view to promoting integrated rural development and securing prosperity of rural areas.

Q7. What is KYC?
KYC stands for ‘Know Your Customer‘. As per KYC guidelines prescribed by RBI, some personal information of the customer is required while opening an account (or renewal of old accounts!). The objective is to enable positive identification of customers by their respective Banks; and to prevent money laundering.

Q8. List the Roles of RBI (Reserve Bank of India)

  • Government’s banker and performs banking functions for the central and the state
  • Bankers of banks
  • Maintain liquidity in the economy
  • Regulator of country’s financial system
  • Regulates and facilitates foreign trade advisor to the Government of India
  • Issue currency notes

Q9. What are Derivatives?
A derivative is an agreement between two gatherings which infers its esteem/cost from a basic resource. The most well-known kinds of subordinates are fates, alternatives, advances and swaps. Depiction: It is a budgetary instrument which determines its esteem/cost from the fundamental resources.

Q10. What is liquidity adjustment facility (LAF)?
LAF is a monetary policy tool which allows banks to borrow money through repurchase agreements. LAF aids banks to address liquidity pressures i.e. cash shortages and is used by the government to ensure stability in financial markets. LAF comprises repo and reverse repo transactions.

Q11. What is fiscal Policy?
Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation’s economy. It is the sister strategy to monetary policy through which a central bank influences a nation’s money supply.

Q12. What are Open market operations?
Open Market Operations allude to the buy and offer of the Government securities (G-Secs) by RBI from/to showcase. The target of Open Market Operations is to alter the rupee liquidity conditions in the economy on a tough premise. At the point when RBI offers government security in the business sectors, the banks buy them.

Q13. What is a Demand Draft?
Demand Draft is a negotiable instrument that is used for effecting transfer of money. Since it’s a banker’s check, it can’t be dishonored.

Q14. What do you mean by Nationalization of Commercial Banks in India?
The Government of India issued an ordinance (‘Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1969’) and nationalised the 14 largest commercial banks with effect from the midnight of 19 July 1969.

Q15. What is Bank Rate?
Bank Rate is the rate of premium charged by The Central Bank of India against advances offered to business banks. Bank rate is generally higher than repo rate. Not at all like repo rate, bank rate specifically influences the end client, for this situation the client, as high bank rates mean high loaning rates. At the point when bank pay high financing cost to acquire credit from RBI, they consequently charge the client high loan fee to earn back the original investment. Otherwise called “Markdown Rate”, bank rate is a capable device utilized by the RBI to control liquidity and cash supply in the market. The present Bank Rate is the same as MSF rate.

Q16. What is a Saving Account?
A savings account is one of the simplest types of bank accounts. It allows you to store cash securely and earn interest on your money.

Q17. What is Corporate Banking?
Corporate keeping money is characterized as uniquely custom fitted financing and managing an account administrations for partnerships. Corporate managing an account is ordinarily offered by business banks, and involves every one of the administrations that can be stretched out on a budgetary level to corporate substances to ease everyday operations.

Q18. What are your career goals? Where do you see yourself five years from now? Ten years?
Well this type of question could be a trap. we should say that i always plan the things step by step that`s why i have a ready plan for the coming up year and that is feasible. If I say that to get a job and to settle myself in the company would be a practical answer.

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