List of Top Questions that Asked in Bank Interview 2014 (Part-I) | 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.
1. Why do you want to join in Banking Sector?
Answer: Banking Sector is one of the fastest growing sectors in India, it was more stable and has high growth rate. And also it provides wide range of career opportunities for graduates. So I need to take the opportunity to make my career in Banking Sector.
2. What is the difference between Cheque and Demand Draft?
Cheque: Cheque is a negotiable instrument that directs a bank to pay a specific amount from a particular account that was mentioned in the maker/depositor name with that bank.
Demand Draft: Demand Draft is an instrument that was used for the effective mode of money transfer. It is also a negotiable instrument.
3. What is Private Banking?
Answer: Private Banking institutions are the services that offered to the high net-worth individuals in investing his/her money in exchange for commissions and fees. The term ‘Private’ refers that the customer service being rendered on a more personal basis.
4. What is Non-Banking Financial Company (NBFC)?
Answer: Non-Banking Financial Companies has been registered under the Companies Act 1956, that can engage in business of loans and advances, acquisition of shares/stocks/bonds/debentures/securities that was issued by Government or Local authority or other marketable securities. But it will not include any institution whose principal business is that of agriculture activity, industrial activity, purchase or sale of any goods (other than securities) or to provide any services like sale/purchase/construction of immoveable property.
A Non-banking institution is a company and it has principal business to receive deposits under any schemes or arrangement in one lump sum or by installments by way of contributions or in any way, it is also a non-banking financial company (Residuary Non-banking Company).
5. What is the difference between NBFCs and Banks?
Answer: NBFCs will just lend and make investments; they cannot accept demand deposits.
NBFCs can’t be the form part of the payment and settlement systems, and they can’t issue cheques drawn on itself. Deposit insurance and credit guarantee corporation was not available in NBFC as like in Banks.
6. What is BSBDA?
Answer: BSBDA-Basic Savings Bank Deposit Account
Under the RBI guidelines issued on August 10, 2012, any poor individual or those from weaker section of the society can open zero balance account in any bank. This BSBDA guidelines will applicable for all scheduled commercial banks in India, including foreign banks that has branches in India. The BSBDA accounts will be considered as a normal banking service available to all customers throughout the branches.
7. What is BPS (Basic Points)?
Answer: Basic Points is used to indicate changes in rate of interest and other financial instruments. 1 basis point is equal to 0.01%. If the repo rate is increased by 25 bps means that rate has increased by 0.25%.
8. What is KYC?
Answer: KYC- Know Your Customer. RBI has advised all banks to follow the KYC guidelines, that to obtain all personal information of the account opening customer. This is to have a positive identification of the customer to safe guard their hard earn money. In these KYC guidelines, RBI has made mandate to collect the following three proofs from the customers, photograph, Identity proof, Address proof.
9. What is Sub-Prime crisis?
The current Sub-Prime Crisis is due to sub-prime lending, these are the loans given to the people having low credit rating.
10. What is Base Rate?
Answer: Base rate is the minimum rate of interest that a bank charges from its customers. Bank can’t offer loans at a rate lower than Base Rate to any customers.
11. What is SWIFT?
Answer: SWIFT- Society for Worldwide Interbank Financial Tele-Communication.
Swift Code is the standard format of the bank identifier code, this code is used particularly in International transfer of money between banks. India was the 74thNation to join in SWIFT network.
12. What is Swabhimaan Yojana?
Answer: Swabhimaan Yojana was the plan that implemented in the banks to take banking to the door steps of the remote villages, where the banking facilities are not available.
13. What are NOSTRO and VOSTRO Account?
Answer: A NOSTRO account was maintained by an Indian Bank in the foreign countries.
A VOSTRO account was maintained in the foreign bank in India by their corresponding banks.
14. What is DeMat Account?
Answer: Dematerialized account is called as DeMat account. If an individual want to save money or make cheque, he/sheneeds to open a bank account for him. Likewise if a person needs to buy or sell stocks he/she needs a DeMat account. This account is similar to normal bank account where money is being replaced as shares.
15. What is RuPay card?
Answer: RuPay is the Indian Domestic Card payment network which was set up by National Payments Corporation of India (NPCI) on behalf of banks in India (RBI).
16. What is Foreign Exchange Reservers?
Answer: Foreign Exchange reserves which was also called as Forex Reserves is a strict sense of the foreign currency deposits and bonds that held by central banks and monetary authorities. This term is popularly used in foreign exchanges of golds, SDRs and IMF reserve positions.
17. What is Bancassurance?
Answer: Bancassurance which was also called as referral business that stands for distribution of financial products like insurance policies etc., by banks or corporate agents through their branches located in different parts of the country.
18. What is Money Laundering?
Answer: Money Laundering is the process of concealing the source of money that obtained from. Money or funds that obtained from illegal activities are presented as legitimate.
19. What is the difference between Nationalized Banks and Private Banks?
Answer: Nationalized Banks are that owned by the government of the country, and the people can decide who can be the government. This was also called as public sector banks. Government is the only responsible for any activities that held in these banks.
Private Sector Banks is owned by an independent individual or a company which controlled by few individuals. The bank which runs by a third party other than government is called as private sector banks. The particular individual who runs the bank is the only responsible for the money deposited into the accounts of these banks.
20. What is called as Non-Performing Assets?
Answer: If the borrower has failed to make interest or principal payments for 90 days then that loan is considered as to be Non-performing assets, which was also called as Non-Performing Loans.