List of Top Bank Interview Questions 2014 (Part-II) | IBPS PO/Clerk Exam Preparation

    List of Top Bank Interview Questions 2014 (Part-II) | IBPS PO/Clerk Exam Preparation:
    Candidates those who are preparing for Bank exams has more struggles during the personal interview, here we have mentioned the list of top questions that asked during the Bank Interview, which will be more useful.

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    1.)What is the function of RBI?
    Answer: The Reserve Bank of India is the Central Bank of India which was established on April 1, 1935 based on the Reserve Bank Act, 1934. The Reserve Bank was started up on the recommendations of the Hilton Young Commission. RBI controls the following functions,
    ·        Supply of Money
    ·        Availability of Money
    ·        Cost of Money or rate of interest in order to attain the set of objectives oriented towards the growth and stability of the country.

    2.)What is SEZ?
    Answer: SEZ-Special Economic Zone is the one of the government policies of India. This is a separate geographical region that has more liberal economic laws than other parts. This facility is made mainly to increase the foreign investment, development of infrastructure, job opportunities and to increase the income level of the country.

    3.)What is SIDBI?
    Answer: SIDBI- Small Industries Development Bank of India is a bank that was maintained by a state which was aimed to help for the growth and development of the micro, small and medium scale industries in India. This was launched through a act by parliament.

    4.)What is TREASURY BILLS (TB)?
    Answer: Treasury Bills (T-Bills) are the short term liabilities of the central government. These bills are issued in three types by the government namely, 91 days, 182 days, and 364 days. These Treasury bills can’t be issued by state government.

    5.)What is Commercial Paper (CP)?
    Answer: Commercial paper is a short term money market instrument that was issued in the form of promissory note. This was introduced by RBI in 1991. This Commercial paper can be issued by any financial institute in India. The date of maturity of this CP will be minimum 7 days to one year from the date of issued.

    6.)What is CRM?
    Answer: CRM is Customer Relationship Management that was launched to increase the ability to understand and manage the needs of the customers.

    7.)What is Right to information Act?
    Answer: Right to information Act is a law which was launched by the parliament of India which gives full rights to Indian citizens to access the records of Central Government and State Government. This law can apply to all states and union territories of India, except the state of Jammu and Kashmir, which comes under State-Level law. This law was passed on 15th June 2005 and came to full force on 13th October 2005.

    8.)What is Recession?
    Answer: Recession is a term that used to calculate the economic status of an organization. The true economic recession can be calculated only if the GDP(Gross Domestic Product) is in negative for a period of two or more consecutive quarters.

    9.)What is Dematerialization?
    Answer: Dematerialization is a process in which the paper certificates of an investor are taken by the company/registrar and destroyed then an equivalent number of securities are credited in electronic holdings of that investor.

    10.)    What is Defivative?
    Answer: Defivative is a financial contract that derives its value from another financial product/commodity called underlying. Forward contract in foreign exchange transaction, is a simple form of a derivative.

    11.)    What if LAF?
    Answer: LAF- Liquidity Adjustment Facility was launched in June 2000, by RBI to ensure the smooth transition and keeping pace with technological upgradation.

    12.)    What is Repo Rate?
    Answer: Repo Rate is the rate at which our bank borrows money from RBI, at the time of shortage of funds. If the repo rate is low, banks can get money in cheaper rate, and if the repo rate increases then RBI will provide money in higher rate.

    13.)    What is Reverse Repo Rate?
    Answer: Reverse Repo rate is exactly opposite to the Repo rate, it is the rate at which RBI borrows money from other banks. If the Reverse repo rate is high all the banks are interested to transfer more funds to RBI in good rate of interest.

    14.)    What is CRR Rate?
    Answer: CRR- Cash Reserve Ratio is the amount of funds that the banks have to keep with RBI, if the RBI decides to increase this rate, and then the available amount of the banks comes down. This method is used to drain the excessive money from the banks.

    15.)    What is Bank Rate?
    Answer: Bank rate is the discount rate, the rate of interest at which a central bank charges on the loans and advances that extends to commercial banks and other financial intermediaries. Central Bank often changes the bank rate to control the money supply.

    16.)    What is PLR?
    Answer: PLR-Prime Interest Rate is the interest rate that charged by the banks to their most credit worthy customers.

    17.)    What is Bitcoin?
    Answer: Bitcoin is a network that allows a new payment system and the process of complete digital money features. This is the first decentralized peer-to-peer payment network that is powered to its users.

    18.)    What is SLR rate?
    Answer: SLR- Statutory Liquidity Ratio is the amount that commercial bank needs to maintain in the form of cash, gold, government approved securities (bonds) before providing credits to its customers. This SLR rate was decided and maintained by RBI to control the expansion of bank credit.

    19.)    What is Deposit rate?
    Answer: Deposit rate is the interest rate that paid by the banks or other depository institution on the cash deposited by the customers.

    20.)    What is FDI?
    Answer: FDI- Foreign Direct Investment is the process of purchase of the physical assets or significant percentage of ownership (Stock) of a company from another country to gain measure of management control.

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