Cracking Bank Interview Questions with Answers Set-3

    Cracking Bank Interview Questions with Answers Set-3
    Cracking Bank Interview Questions with Answers Set-3:
    Dear Readers, Here we have given the list of important Bank Interview Questions, Candidates can use these questions for the preparation. More questions will be updated soon.

    1).What do you mean by Financial Inclusion?
    Answer: Financial Inclusion means providing to the large unbanked population of India access to Financial product and services like deposit accounts and credit financial advisory services Steps taken so far for promotion for financial inclusion have been the cooperative movement nationalization of bank, lead bank scheme, regional rural banks, self help groups and last but not the least no frill accounts.

    2).What is a Self Help Group?
    Answer: Self Help Group (SHG) is a small voluntary association of poor people, preferably from the socio-economic background. They come together for the purpose of solving their common problem through self help and mutual help. The SHG promotes small saving among its members.The saving is kept with a bank and fund is in the name of the SHG. Usually the number of members in an SHG does not exceed twenty.

    3).What is a NBFC?
    Answer: A Non- Banking Financial Company (NBFC) is a company registered under the Companies Act1956 and is engaged in the business of loans and advances, acquisition of shares/stock/bonds/debentures/securities issued by government, but does not include any institution whose principal business is that of agriculture activity, industrial activity sale/purchase/construction of immovable property.
     NBFCs are doing functions akin to that of banks: however there are a few differences
    ·        A NBFC cannot accept demand deposits (demand deposits are funds deposited at a depository institution that are payable on demand—- immediately or within a very short period——-like your current or saving accounts.)
    ·        It is not a part of the payment and settlement system and as such cannot issue: cheques to its customers.
    ·        Deposit insurance facility of DICGC is not available for NBFC depositors unlike in case of banks.

    4).Why the banks put more emphasis on lending to Self Help Groups (SHGs)?
    Answer: Banks uses it as strategy (credit) for reaching the rural poors. It provides certain advantages to the banks i.e., externalization of some of their credit activities, such as assessment of credit needs, appraisal, disbursal, supervision and repayment Reduction in paper work leads to reduction in transaction cost and above all larger mobilization of savings.

    5).Who controls the NABARD?
    Answer: Earlier Reserve Bank of India (RBI) had 100% stake in NABARD Now. RBI deinvested 99% of its stake to Government of India and remaining 1% left with the RBI.

    6).Can you tell us something about NABARD?
    Answer: NABARD is set-up as an Apex development bank with a mandate for facilitating credit flow for promotion and development of agriculture, small scale industries, and cottage and village industries handcrafts and other rural crafts. It also has the mandate to support all other economic activities in rural areas. It also acts as regulator of cooperative banks and RRBs, as refinance institution and coordinates between Government of India. RBI and other organization in matters relating to rural development.

    7).What are Special Drawing Rights (SDRs)?
     Answer:The Capital resources of the IMF (International Monetary Fund) comprise of SDRs and currencies that member pay under quotes calculated for them when they join the IMF. SDRs is the IMFS main reserve asset and is held by member countries as part of their international reserves. SDR is not real money and has no gold backing and does not have a tangible life of its own. It takes the form of book keeping entries in a special account managed by the IMF. Member countries use this special account to obtain needed foreign currency to resolve the balance of payment situation.

    8).Tell us something about IBRD (International Bank for Reconstruction and Development).
    Answer: The IBRD is the part of World Bank Group which provides funds to member countries. Under its investment operations provide funding loans to government to cover specific expenditures related to economic and social development projects in a broad range of sector’s. And under its development policy operations provide united, direct budget support to government for policy and institutional reforms aimed at achieving a set of specific development results.

    9).Credit Rating Agencies in India?
    Answer: The credit rating agencies in India mainly include ICRA and CRISIL. ICRA was formerly referred to the Investment Information and Credit Rating Agency of India Limited. Their main function is to grade the different sector and companies in terms of performance and offer solutions for up gradation. The credit rating agencies in India mainly ICRA and CRISIL (Credit Rating Information Services of India Limited).

    10).What is Bancassurance?
    Answer: The term ‘Bancassurance’ implies selling of insurance products across bank counters. Banks are favorably placed because of their large customer base and the trust of their clients. Insurance companies want to utilize this largely captive customers pool of banks with close understanding of each customer’s financial needs.

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