कर्मण्यवे ाधिकारस्ते र्ा फलेषु कदाचन। र्ा कर्मफलहेतर्

ु भमर्ाम ते सं गोऽस्त्वकर्मणि॥

Hey guys,
You are reading this article that means you are gonna rock your interview. IBPS calls candidates in a ratio of 3:1 for
each post, which means that there will be three candidates interviewed for each vacant post. So, in order to be
successful, you need to try to score very well in your interview. This can be achieved by proper planning and
preparation.

Panel of Interviewers:

i) Your interview will be conducted by a panel comprising 5-6 IBPS officials.

ii) The panel will consist of a main interviewer, who will ask questions based on your personality and aspirations.
She/he will be the judge of your personality.
iii) One of the panel members with technical expertise will ask questions about banking and your decision to pursue a
career in this field.
iv) Another member will analyse your profile/CV and ask questions based on facts mentioned in the same.

The questions asked in the interview can be grouped into some of the following major categories:

1. Personal Questions

• Questions based on your hobbies, interests & activities.

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• Family background

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• Strengths & weaknesses

2. Profile-based Questions
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• Questions based on your academic background and qualifications, job role and work experience
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• Basic definitions & concepts related to your field of education

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• Recent developments related to your field of your education/job

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3. Personality Test & Decision-making Questions

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• Questions to check your EQ & IQ

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• Situation & behaviour-based questions to assess your managerial skills and decision-making ability.
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4. Questions based on Banking Awareness, Current Affairs and Computer Awareness.

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5. Questions like “Why do you want to join the Banking Sector?” or “Why do you want a government job?” may also
be asked.
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Interview Preparation:

• First of all, list out all the possible questions that may be asked based on the major categories we have enumerated
above.

• Prepare standard and comprehensive answers to each of the questions.

• Then, critically analyse these answers and note down questions that may arise from the answers. Prepare answers
for these questions also. You can take help from your friends, parents or seniors for this exercise.

• Also, try to modify your original answers to eliminate inaccuracies.

• Make a flow chart of all the questions & sub-questions in order to clearly understand the direction of the interview.
A flow chart will also help to cover all the areas that you may have missed.

• Before appearing for the real interview, practice by giving mock interviews to your friends or parents. It will help you
analyse your performance and boost your confidence.

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 कर्मण्यवे ाधिकारस्ते र्ा फलेषु कदाचन। र्ा कर्मफलहेतर्
ु भमर्ाम ते सं गोऽस्त्वकर्मणि॥

63 most important Banking questions which can be expected in the interview:

1. “Tell me about yourself”

This is a very typical question in any interview. It allows you to present various salient aspects of your personality
including your personality traits, achievements, aspirations, motivations and ambitions. You should focus on your
strengths while answering this question and you should have a very well prepared answer for this question. While
preparing this answer, keep your introduction simple and brief, else you risk making it boring. After all, an interview is
a two-way conversation and you are not there to give a speech. Use your time wisely as interviewers are not interested
in irrelevant details.

2. Why do you want to join the Banking sector?

i. Banking is one of the most rapidly growing and important sectors of the Indian economy.

ii. It will serve as a great beginning for a long-term career and will also provide opportunities for learning and growth.

iii. It includes various job profiles and since many roles demand direct interaction with customers, it is an excellent
platform to implement and develop one’s interpersonal skills, salesmanship skills, etc.

iv. Many roles in the banking sector demand analytical, mathematical, or financial skills. Thus, it is a great option for

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those with expertise in these areas.

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3. Why do you want to join the government sector?

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i. Government sector employs the biggest number of people, offering diverse roles and profiles.
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ii. Candidates have a wide range of alternatives to choose from depending upon their fields of interest and capabilities.
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iii. Government jobs call for greater responsibilities compared to the private sector. Hence, it allows candidates to
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significantly contribute to society and derive considerable amount of satisfaction by discharging duties to the best of
their abilities.
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iv. Government jobs provide security and even today has a good reputation in the society.
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4. What is a central bank?

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A central bank is the apex organisation which controls, regulates and monitors financial institutions in a country.
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It is also responsible for formulating and implementing the monetary policy. Examples: The Federal Reserve Bank (US),
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the European Central Bank (EU), Bank of Japan (Japan), etc.

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➢ Reserve Bank of India (RBI) is India’s central bank.

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➢ The RBI was set up on the basis of the recommendations of the Hilton Young Commission.

➢ It was established in 1935 as per the provisions of the RBI Act of 1934 and was nationalised in 1949.

➢ It was established in order to ensure monetary stability, regulate the issue of currency and operate India’s credit
system to its advantage.

➢ All commercial banks in India have accounts with the RBI and it provides funds to all the banks. The RBI is thus also
called the banker’s bank and lender of last resort.

Following are the functions of the RBI: a. Control the monetary policy of India.

b. Regulate and supervise banking and non-banking financial institutions.

c. Regulate money, foreign exchange (forex) and government securities markets.

d. Issue currency notes and control the volume of credit created by banks.

e. Provide loans to commercial banks in order to maintain or grow the Gross National Product (GNP)

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 कर्मण्यवे ाधिकारस्ते र्ा फलेषु कदाचन। र्ा कर्मफलहेतर्
ु भमर्ाम ते सं गोऽस्त्वकर्मणि॥

f. Carry out the government’s banking needs.

5. Who is the present Governor of RBI? –

Your task to find out

6. How many Deputy Governors are there in RBI?-

Your task to find out

7. RBI has now shifted to monetary policy committee to decide interest rates? What do you mean by Monetary Policy
committee?

On June 27, 2016, the Government amended the RBI Act to hand over the job of monetary policy-making in India to a
newly constituted Monetary Policy Committee (MPC).

What is it?

The new MPC is to be a six-member panel that is expected to bring “value and transparency” to rate-setting decisions.
It will feature three members from the RBI — the Governor, a Deputy Governor and another official — and three
independent members to be selected by the Government.
A search committee (yes, another committee!) will recommend three external members, experts in the field of

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economics, banking or finance, for the Government appointees. The MPC will meet four times a year to decide on

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monetary policy by a majority vote. And if there’s a tie between the ‘Ayes’ and the ‘Nays’, the RBI governor gets the
deciding vote.

Why is it important?
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Until recently, India’s central bank used to take its monetary policy decisions based on the multiple indicator
approach. Its rate decisions were expected to take into account inflation, growth, employment, banking stability and
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the need for a stable exchange rate. As you can see, this is a tall order. Thus, RBI (with the Governor as the focal
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point) would be subject to hectic lobbying ahead of each policy review and trenchant criticism after it. The
Government would clamour for lower rates while consumers bemoaned high inflation. Bank chiefs would want rate
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cuts, but pensioners would want high rates. RBI ended up juggling all these objectives and focussing on different
indicators at different points in time. To resolve this, RBI set up an Expert Committee under Urijit Patel to revise the
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monetary policy framework, and it came up with its report in January 2014. It suggested that RBI abandon the
‘multiple indicator’ approach and make inflation targeting the primary objective of its monetary policy. It also
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mooted having an MPC so that these decisions could be made through majority vote. Having both Government and
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RBI members on the MPC was suggested for accountability. The Government would have to keep its deficit under
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check and RBI would owe an explanation for runaway inflation.

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Why should I care?

What happens to interest rates in the country matters to you as a saver, investor, consumer and borrower? High rates
can help savers earn more on debt options. Loan-takers may prefer lower rates. The MPC will ensure that decisions
on interest rates are made through debate by a panel of experts. The many-heads-are-better-than-one approach may
also help ensure that the decision isn’t easily influenced by bias or lobbying.
India’s shift to an MPC, driven by a clear inflation-targeting framework, if it succeeds, may also ensure that consumers
and investors can look forward to lower inflation rates over the long-term. The public disclosure of MPC deliberations
will also tell you why its members batted for higher or lower rates.

9. What are Open Market Operations?

Open Market Operations refer to the purchase or sale of government securities in the open market by the RBI. O When
the RBI sells securities in the market, money gets transferred from commercial banks to the RBI. This decreases money
supply in the system. Shortage of money in the economy helps to control spending by individuals/corporates and keep
inflation in check.

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 कर्मण्यवे ाधिकारस्ते र्ा फलेषु कदाचन। र्ा कर्मफलहेतर्
ु भमर्ाम ते सं गोऽस्त्वकर्मणि॥

When the RBI purchases securities from the market, money gets transferred from RBI to the commercial banks,
thereby increasing the money supply. This is done if economic growth is sluggish.

10. What is Repo rate?

Repo rate is the rate at which the RBI lends money to commercial banks in case of any shortage of funds. It is the rate
of interest charged on short-term (3-90 days) loans. It is used by monetary authorities to control inflation.

11. What happens when the RBI increases or reduces the Repo rate?

When the repo rate increases, borrowing from the RBI becomes more expensive. In other words, the RBI would charge
a higher rate of interest for money provided to various commercial banks. The banks would thus be forced to charge
their customers a higher rate of interest on home and auto loans in order to balance the impact of the rate hike. Thus,
while on the one hand, inflation is under control as there is less money to spend, growth suffers as companies avoid
taking loans at high rates. This leads to a drop in production and expansion. When the repo rate is reduced banks get
money from the RBI at a cheaper rate of interest. Banks thus charge their customers a low rate of interest on home,
auto and other types of loans.

12. What is Bank rate?

It is the rate of interest implemented by the RBI when it lends money to a public sector bank on a long-term basis, i.e.

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from a period ranging from 90 days to 1 year. By this definition, bank rate and repo rate seem to be similar terms as

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both are interest rates at which RBI lends money to banks. However, repo rate is a short-term measure and refers to
short-term loans used for controlling money supply in the market, whereas bank rate is a long-term measure. Bank

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rate is also referred to as the discount rate and is the rate of interest which a central bank charges on the loans and
advances to a commercial bank.
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13. What is Marginal Standing Facility (MSF)?
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It is the rate at which banks borrow funds overnight from the RBI against approved government securities. MSF was
implemented in May 2011. Under MSF, banks can avail funds from the RBI on overnight basis against their excess
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statutory liquidity ratio (SLR) holdings.

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14. What is Cash Reserve Ratio (CRR)?

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It is the reserve of funds that banks have to mandatorily keep with the RBI, and is a percentage of the deposits held
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by the bank. The RBI uses CRR to remove excessive money from the system. If the central bank decides to increase the
CRR, the amount available with the banks reduces. Example: If a bank account holder deposits Rs. 1,000 in his account,
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the bank can use it to lend money to others, but has to deposit a percentage of that amount with the RBI. If the CRR
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is 4%, the bank will deposit Rs.40 with RBI and will have Rs.960 left at its disposal.
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15. What is Statutory Liquidity Ratio (SLR)?

It is the amount a commercial bank needs to maintain in the form of cash, gold, or government-approved securities
(bonds) before lending credit to its customers. SLR is determined by the RBI in order to control the expansion of bank
credit.

16. 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.

17. 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.

18. What is liquidity adjustment facility (LAF)?

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 कर्मण्यवे ाधिकारस्ते र्ा फलेषु कदाचन। र्ा कर्मफलहेतर्
ु भमर्ाम ते सं गोऽस्त्वकर्मणि॥

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.

19. What are the present policy rates and reserve ratios?

Please check on RBI website daily –[Link] (it is given on home page)
By the way all interest rates as on 25/11/2017 are as follows:
Repo-6.00%
Reverse repo-5.75%
Bank rate-6.25%
MSFR-6.25%
CRR-4%
SLR-19.50%

20. What is the history of banking in India? What services do banks provide?

Banking in India in the modern sense originated in the last decades of the 18th century. Among the first banks were
Bank of Hindustan, which was established in 1770 and liquidated in 1829-32; and General Bank of India, which was
established 1786 but failed in 1791.

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Following are the valuable services banks provide:

a. Safekeeping of our money and valuables.

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b. Financial help by way of personal loans, housing loans, vehicle loans, etc. A loan is a sum of money borrowed at a
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rate of interest for a set time period. The borrower has to pay back the money with interest. For example: If a student
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wishes to study abroad, but does not have sufficient money to incur the expenses for the course, s/he can take an
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educational loan from a bank.

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c. Banks deal with foreign exchange and provide customers local currency in lieu of foreign notes.
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d. Banks also facilitate faster fund remittance facilities, including NEFT and RTGS.
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21. What do you understand by nationalisation?

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Nationalisation is the process the government/state takes ownership of a private industry/asset.

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22. Why were banks nationalised?

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a. Commercial banks operated in the private sector and were more business-friendly.
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b. They lacked the resolve to serve the poor sections of the society, mainly those in the agro and agro-allied
occupations.

c. Agriculture was the backbone of the Indian economy and the lack of financial empathy towards farmers and small-
time entrepreneurs was deemed reckless. Banks were nationalised to enable poor sections of the society to take
advantage of their services.

23. When were Indian banks nationalised?

Nationalisation of banks took place in two phases during former Prime Minister Indira Gandhi’s rule.

(when I gave my 1st banking interview , they asked me the same Question, I answered it correctly, then suddenly one
of them asked me the nick name of Indira Gandhi  - mere mama ki beti ka naam tha –Priyadarshini) Well I got that
time Canara bank, IBPS 2015

(You don’t need to remember all these. just keep in mind 2 or 3)

Following are the 14 commercial banks that were nationalised in the first phase on July 19, 1969. Central Bank of India

United Commercial Bank Syndicate Bank

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 कर्मण्यवे ाधिकारस्ते र्ा फलेषु कदाचन। र्ा कर्मफलहेतर्
ु भमर्ाम ते सं गोऽस्त्वकर्मणि॥

Bank of Maharashtra
Bank of India
Canara Bank
Allahabad Bank
Indian Overseas Bank
Bank of Baroda
United Bank
Union Bank

Six commercial banks were nationalised in the second phase on April 15, 1980, namely:

Andhra Bank
Corporation Bank
Oriental Bank of Commerce
New Bank of India
Punjab & Sindh Bank
Vijaya Bank
Punjab National Bank

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Dena Bank
Indian Bank

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24. How were State Bank of India and its associate banks formed?
State Bank of India is India’s largest public sector lender. It originated as the Bank of Calcutta in June 1806. In 1809, it
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was renamed as the Bank of Bengal. This was one of the three banks funded by a presidency government; the other
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two were the Bank of Bombay and the Bank of Madras. The three banks were merged in 1921 to form the Imperial
Bank of India, which after India’s independence came to be known as the State Bank of India in 1955. Under the State
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Bank of India (Subsidiary Bank) Act 1959, SBI acquired 7 associate banks earlier belonging to princely states prior to
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nationalisation.
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These were: State Bank of Bikaner & Jaipur State Bank of Patiala
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State Bank of Hyderabad State Bank of Travancore

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State Bank of Mysore State Bank of Saurashtra

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State Bank of Indore A proposal to merge all associate banks into SBI to create a ‘mega bank’ was mooted, under which
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State Bank of Saurashtra and State Bank of Indore were merged into SBI in August 2008 and June 2009 respectively.
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STATE Bank OF INDIA (Recent Updates):

1. SBI merger with its Associate Bank & Bhartiya Mahila Bank (BMB)-
On April 1, 2017, the five-associate bank of SBI and Bhartiya Mahila Bank became the part of the SBI Bank.
With this merger, the total customer base of the bank will reach 37 crores with a branch network of around
24,000 and nearly 59,000 ATMs across the country.
The list of the banks is –

1. State Bank of Bikaner and Jaipur (SBBJ)

2. State Bank of Hyderabad (SBH)
3. State Bank of Mysore (SBM)
4. State Bank of Patiala (SBP)
5. State Bank of Travancore (SBT)
6. Bharatiya Mahila Bank (BMB)

Note:

• In 2010, State Bank of Indore was merged with SBI.

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 कर्मण्यवे ाधिकारस्ते र्ा फलेषु कदाचन। र्ा कर्मफलहेतर्
ु भमर्ाम ते सं गोऽस्त्वकर्मणि॥

• In 2008, State Bank of Saurashtra was merged with SBI.

• In 1995, Kashinath State Bank merged was merged with SBI.
• In 1985, Bank of Cochin was merged with SBI.
• In 1955, Imperial Bank of India (IBI) (oldest and the largest commercial bank of the Indian
subcontinent) was transformed into State Bank of India.
• The Imperial Bank of India came into existence on January 27, 1921.

Note:

• New Chairman of SBI – Rajnish Kumar.

• Headquarter of SBI – Mumbai

25. What are commercial banks?

The term ‘commercial bank’ refers to both scheduled and non-scheduled banks that are regulated under the Banking
Regulation Act, 1949.

26. What are scheduled banks?

The Indian banking industry is broadly classified into scheduled banks and non-scheduled banks. Scheduled banks are

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defined under the 2nd Schedule (2E) of the RBI Act, 1934. When the RBI confirms that a bank satisfies criteria listed in
section 42 (6) (a) of the Act, it lists the bank as a scheduled bank.

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For this, the bank has to satisfy two conditions:

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1. It should have paid-up capital and reserves of an aggregate value of at least Rs. 5 lakhs
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2. Day-to-day banking activities of the bank should not adversely impact the interests of its depositors.
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Scheduled banks enjoy the following facilities:

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1. They become eligible for debts/loans on the prevailing bank rate from the RBI
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2. They automatically acquire clearing house membership.

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Scheduled banks are further classified into:

➢ State Bank of India and its associate banks

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➢ Nationalised banks
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➢ Regional rural banks (RRBs)

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➢ Private banks

➢ Foreign banks

27. What are non-scheduled banks?

These are the banks that are not included in the 2nd schedule of RBI Act, 1934. They also have to maintain a statutory
cash reserve, but not with the RBI. Their banking activities are also limited. For example, they cannot deal in foreign
exchange. These banks are not listed on the stock exchange and their shares are not traded publicly.

For Example: All Co-operative banks come under non-scheduled banks.

Following are some of the non-scheduled banks in India: Akhand Anand Co-Op Bank Ltd. Amarnath Co-Op Bank Ltd.
Alavi Co-Op Bank Ltd. Amod Nagrik Sahakari Bank Ltd.

28. What are public sector banks?

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 कर्मण्यवे ाधिकारस्ते र्ा फलेषु कदाचन। र्ा कर्मफलहेतर्
ु भमर्ाम ते सं गोऽस्त्वकर्मणि॥

These are banks wherein the government holds a majority stake. At least 51% ownership is vested with the
government. The remaining 49% shares of these banks are listed on stock exchanges. There are a total of 27 public
sector banks in India (21 nationalised banks and 6 SBI group banks).

29. What are regional rural banks (RRBs)?

On the recommendation of the Narasimham committee, RRBs have been established with sponsorship by individual
nationalised commercial banks. They have been created in order to principally cater to masses in India’s rural areas
with basic banking and financial services. However, RRBs may have branches for urban operations as their area of
operation may include urban areas too. These banks grant loans only to marginal farmers, people operating in the
rural agriculture sector and to small entrepreneurs/labourers. Currently, there are 56 RRBs operating in India.

30. What are foreign banks?

Banks that have originated from outside India or are headquartered overseas are known as foreign banks. As of
September 30, 2015, (there are 46 foreign banks with operations in India. Some examples include: Royal Bank of
Scotland, Bank of America, HSBC Ltd., Barclays Bank Plc., Citibank NA, etc.

31. What are private sector banks?

Banks wherein the majority shareholding is held by private individuals/organisations are called private sector banks.

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At least 51% ownership is vested with businessmen/private organisations. The shares of these banks may be listed on

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stock exchanges. Currently, there over 20 private sector banks in India. Some examples include, HDFC Bank, ICICI Bank,
Axis Bank, Yes Bank, Kotak Mahindra Bank, etc.

32. What are co-operative banks?

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A bank that holds deposits, makes loans and provides other financial services to cooperatives and memberowned
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organisations is termed a co-operative bank.
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33. What are the capital requirements for new banks/NBFCs/foreign banks in the private sector?
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The key requirements are:

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a. Minimum capital requirement will be Rs. 500 crore.

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b. Aggregate foreign shareholding in the new bank should not exceed 49% for the first five years.
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c. The new bank should open at least 25% of its branches in unbanked rural centres.
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34. Which companies were granted payments bank licences?

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The idea of payments banks and small finance banks was mooted by the Nachiket Mor Committee on Financial
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Inclusion. Subsequently, the RBI decided to allow these two categories of banks to enhance financial inclusion. The
minimum paid-up capital required for both categories is Rs. 100 crore. Small finance banks can accept deposits and
offer loans to mainly unbanked and underbanked sections. At least 50% of their loan portfolio should include loans
and advances of up to Rs. 25 lakh.
Payments banks can accept demand deposits, but cannot extend loans. They can issue debit cards but not credit
cards. They can distribute non-risk sharing simple financial products like mutual fund units and insurance products,
etc.

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 कर्मण्यवे ाधिकारस्ते र्ा फलेषु कदाचन। र्ा कर्मफलहेतर्
ु भमर्ाम ते सं गोऽस्त्वकर्मणि॥

CURRENTLY FOLLOWING SFB,LAB,PB’S ARE( ACTIVE ONLY )

Small Finance Bank

• AU Small Finance Bank

• Capital Small Finance Bank
• Equitas Small Finance Bank
• ESAF Small Finance Bank
• Fincare Small Finance Bank
• Janalakshmi Small Finance Bank
• Suryoday Small Finance Bank
• Ujjivan Small Finance Bank
• Utkarsh Small Finance Bank

Local Area Banks

• Coastal Local Area Bank Limited

• Krishna Bhima Samruddhi Local Area Bank Limited
• Subhadra Local Area Bank Limited

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Payments Banks

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• Airtel Payments Bank
Fino Payments Bank
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• India Post Payments Bank
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• Paytm Payments Bank
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(you can go directly above mentioned links to Wikipedia to get more in detail, If possible remember their HQ too)
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List of entities that have been granted in-principle payments bank licences:
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Aditya Birla Nuvo, Airtel M Commerce Services, Cholamandalam Distribution Services, Department of Posts, Fino
PayTech, National Securities Depository Ltd, Reliance Industries, Dilip Shantilal Shanghvi, Vijay Shekhar Sharma, Tech
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Mahindra, and Vodafone M-Pesa.

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List of entities that have been granted in-principle small finance bank licences:
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Au Financiers, Capital Local Area Bank, Disha Microfin, Equitas Holdings, ESAF Microfinance and Investments,
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Janalakshmi Financial Services, RGVN (North East) Microfinance, Suryoday Micro Finance, Ujjivan Financial Services
and Utkarsh Micro Finance.

35. How many types of bank accounts are offered by banks in India?

Generally, banks in India offer 4 types of bank accounts:

1. Saving Bank Account: Any individual can open saving bank deposit account and can deposit and withdraw money as
and when required. Interest on such accounts is calculated on a daily basis. An account holder’s PAN details are
required for cash transactions exceeding Rs. 50,000/-. Usually, interest rates are around 4%.

2. Current Account: Current Accounts are meant for businessmen and are not used for investment or saving purposes.
There are no restrictions on the number of times deposits in cash/cheque can be made, or the amount of such
deposits. Banks do not pay any interest on current accounts.

3. Recurring Deposit (RD): Recurring deposit refers to placement of fixed amount of funds at regular intervals into a
special term account. It helps people with regular incomes to deposit a fixed amount every month and earn interest
at the rate applicable to fixed/term deposits. RD accounts are normally allowed for maturities ranging from 6-12
months. Interest is compounded on quarterly basis in recurring deposits.

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 कर्मण्यवे ाधिकारस्ते र्ा फलेषु कदाचन। र्ा कर्मफलहेतर्
ु भमर्ाम ते सं गोऽस्त्वकर्मणि॥

4. Fixed Deposit (FD): An account opened for a fixed period of time by depositing a particular amount of money is
known as fixed/term deposit. The term ‘fixed deposit’ means that the amount of money placed is fixed and is repayable
only after the specific period is complete. The main purpose of fixed deposit accounts is to enable people to earn a
higher rate of interest on their surplus funds. Fixed deposit accounts may be opened for a minimum period of 7 days
and maximum period of 10 years. The minimum amount required to open a fixed deposit varies with banks but is
usually around Rs. 10,000.

36. What is Basic Saving Bank Deposit Account (BSBDA)?

Banks have converted the existing ‘no-frills’ accounts’ into ‘Basic Savings Bank Deposit Accounts’. An individual is
eligible to have only one ‘Basic Savings Bank Deposit Account’ in one bank, and will not be eligible for opening any
other savings account in that bank. Total credits in such accounts should not exceed Rs. 1 lakh in a year. Maximum
balance in the account should not exceed fifty thousand rupees at any time. The total of debits by way of cash
withdrawals and transfers will not exceed ten thousand rupees in a month. The banks are required to provide a
minimum of 4 withdrawals through ATMs free of charge. Interest rates on BSBDA are the same as saving bank
accounts.

(AND THE MOST IMPORTANT QUESTION NOW ) =>

37. What are the measures being taken for financial inclusion in India?

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Financial Inclusion means providing financial services at affordable costs to every citizen of the country.

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(IT IS VERY IMPORTANT TO LEARN ATLEAST MORE THAN 5 SCHEMES)
Because when you will start answering, one of them will keep saying –OR BATAO,OR BATAO (NAME SOME
MORE,NAME SOME MORE )
n.
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The focus is on rural, semi urban areas where financial/banking services are not available or affordable.
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The ‘Pradhan Mantri Jan Dhan Yojana’ scheme for financial inclusion was launched by Prime Minister Narendra Modi
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on August 28, 2014 to help poor people open bank accounts.

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Key Facts about Pradhan Mantri Jan Dhan Yojana:

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➢ The slogan of the scheme is “Mera Khata – Bhagya Vidhaata”

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➢ The scheme aimed to open a minimum of 15 crore bank accounts ,banks till now have opened more than 19.21
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crore accounts under this scheme.

➢ Rupay cards were issued to 16.51 crore customers and Finance Ministry stated that two lakh accounts are opened
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every day.
➢ PMJDY, which includes a life insurance cover of Rs 30,000 and an accident insurance cover of Rs 1 lakh has also
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benefited subscribers as 1,336 claims of life cover and 333 claims of accident insurance cover were paid as of
November 2015.

(WHAT I PREFER TO LEARN =>) (YOU DON’T NEED TO LEARN ALL FIGURES)

Regulatory steps taken by Reserve Bank of India in this regard-

[Link] (Basic Savings Bank Deposit Account)
- No requirement for any minimum balance.
- No limit on the number of deposits while restriction on withdrawal to 4.
b. Relaxation in KYC guidelines
c. Use of extensive technology in banking
d. Appointing business correspondents and business facilitators
e. Opening of branches in unbanked rural areas
f. Licensing of differentiated banks like Payment Bank and Small Bank

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 कर्मण्यवे ाधिकारस्ते र्ा फलेषु कदाचन। र्ा कर्मफलहेतर्
ु भमर्ाम ते सं गोऽस्त्वकर्मणि॥

Schemes launched by Government of India to promote financial inclusion are-

a. PMJDY (Pradhan Mantri Jan Dhan Yojana) - The main features of this scheme are
a. The slogan of the scheme is “Mera Khata – Bhagya Vidhaata”
b. The scheme provided Rs 5,000 overdraft facility for Aadhar – linked accounts and RuPay Debit Card for
all account holders
c. An accident insurance cover of up to Rs. 1 Lakh is also provided.
[Link] Mantri Suraksha Bima Yojana - The main features of this scheme are
a. For personal accident insurance
b. Age group: 18-70 years
c. Sum assured: Rs 2 lakh, while premium: Rs 12 per annum
c. Pradhan Mantri Jeevan Jyoti Bima Yojana - The main features of this scheme are
a. For life insurance
b. Age group: 18-50 years
c. Sum assured: Rs 2 lakh, while premium: Rs 330 per annum
d. Atal Pension Yojana - The main features of this scheme are

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a. For pension purpose

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b. Age group: 18-40 years
c. Fixed pension: Rs 1000-5000 per month at age of 60 years.
Banking products that play a crucial role in the expansion of Financial Inclusion:
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io
a. Savings-cum-overdraft account
ct
b. Remittance products
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c. Savings product
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d. Kisan credit card (KCC) or General credit card (GCC)

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Fund Allocation:
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Reserve Bank of India recently created a new Financial Inclusion Fund (FIF) with funding of Rs 2000 Crore for
expanding the reach of banking services. The new Financial Inclusion Fund is created by merging Financial
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Inclusion Fund and Financial Inclusion Technology Fund into a single Fund — Financial Inclusion Fund (FIF).
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The new FIF will be maintained by NABARD.

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In addition to this, Reserve Bank of India constituted a 14 - member committee under the chairmanship
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of RBI executive director Deepak Mohanty. It will work out a five-year action plan to spread the reach of
financial services to unbanked population.
Benefits of Financial Inclusion-
a. It offers potential for increasing banking business by bringing more and more customers to bank
b. It seeks to improve the standard of living of vast majority of poor persons.
c. It enhances the number of Bankable customers.
d. It boosts the growth of Banking Business.
e. It can bridge the Urban-Rural divide.

38. What is CBS?

CBS is short for CORE Banking Solution.

CORE is short for ‘Centralized Online Real-time Exchange’. CBS is the networking of branches that enables customers
to operate their accounts and avail banking services from any bank branch on the CBS network, irrespective of
wherever their account is located. It is a step towards enhancing customer convenience through ‘anywhere and
anytime banking’.

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 कर्मण्यवे ाधिकारस्ते र्ा फलेषु कदाचन। र्ा कर्मफलहेतर्
ु भमर्ाम ते सं गोऽस्त्वकर्मणि॥

39. How does CBS help customers?

All CBS branches are interconnected with each other. Therefore, customers of CBS branches can avail various banking
facilities from any other CBS branch of that bank located anywhere in the world.

These services are:

➢ To make enquiries about the balance, debit or credit entries in the account.

➢ To obtain cash payment out of his account by tendering a cheque.

➢ To deposit a cheque for credit into his account.

➢ To deposit cash into the account.

➢ To transfer funds from his account to some other account, his own or of any third party, provided both accounts
are in CBS branches.

➢ To obtain Demand Drafts or Banker’s Cheques, the amount shall be debited from his account online.

➢ Customers can continue to use ATMs and other Delivery Channels, which are also interfaced with CBS platform.
Similarly, facilities like Bill Payment, I-BOB, M-BOB etc. shall also continue to be available.

m
co
40. What is Indian Financial System Code (IFSC)?

IFSC is an alphanumeric code that uniquely identifies a bank’s branch participating in the NEFT system. It is used by

n.
the NEFT system to identify the originating / destination banks / branches and also to route the messages appropriately
io
to the concerned banks / branches. It is an 11 digit code with the first 4 letters representing the bank, the 5th character
being 0 (zero), and the last 6 digits representing the bank branch. For e.g.: UBIN0559652 The first 4 characters UBIN –
ct

refers to Union Bank of India; fifth character 0 is a control number; last six digits (559652) represent the Union Bank
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branch at Sindhaura Road, Bhojubeer, Varanasi, Uttar Pradesh.

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41. What is NEFT?

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The National Electronic Funds Transfer (NEFT) is a nation-wide payment system facilitating one-to-one funds transfer.
xa

Under this, individuals can electronically transfer funds from any bank branch to an individual having an account with
any other bank branch in the country. There are no limits, minimum or maximum, for NEFT transactions, in general.
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However, the maximum amount per transaction is limited to Rs. 50,000/- for cash-based remittances and for
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remittances to Nepal.
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42. What is RTGS?

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The Real-Time Gross Settlement (RTGS) system is a funds transfer system wherein transfer of money or securities takes
place from one bank to another on a ‘real-time’ and ‘gross’ basis. The settlement in ‘real-time’ means that the payment
transaction is not subjected to any waiting period and is settled as soon as it is processed. It is primarily meant for
large value transactions and the minimum amount to be remitted is Rs. 2 lakhs. There is no upper limit for RTGS
transactions.

43. What is IMPS?

Immediate Payment Service (IMPS) is an interbank electronic instant money transfer service through mobile phones
in India. IMPS facilitates customers in using mobile instruments as a channel for accessing their bank accounts and
executing interbank fund transfers in a safe manner with immediate confirmation. This facility is provided by NPCI
(National Payment Corporation of India) through its existing NFS switch.

44. What is Plastic money? (MOST IMPORTANT TOPIC ,BANK CLERK,PO SE LEKE IAS,PCS TAK PUCHTE HAIN, and they
will make let you proof that where is plastic in plastic money?  hadd hai)

Plastic money is a term that is used in reference to the hard plastic cards used every day in place of actual bank notes.

They can come in many different forms, some of which are detailed below:

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 कर्मण्यवे ाधिकारस्ते र्ा फलेषु कदाचन। र्ा कर्मफलहेतर्
ु भमर्ाम ते सं गोऽस्त्वकर्मणि॥

➢ Cash Cards: A card that will allow you to withdraw money directly from your bank via an Automated Teller Machine
(ATM) but will not allow the holder to purchase anything directly by using it.

➢ Credit Cards: A card that allows the user to purchase goods and services directly, the transaction basically being a
high interest loan to the card holder, although the card holder can avoid any interest charges by paying the balance
off in full each month.

➢ Debit Cards: This type of card can be used to purchase goods and services, and the money to be paid for the same
will be directly debited from your bank account.

➢ Prepaid Cash Cards: Similar in concept to the debit card, the customer adds money into the card and uses it for
shopping.

➢ Store Cards: These are similar in concept to the Credit Card model, in that the idea is to purchase something in a
store and be billed for it at the end of the month. These cards charge a very high interest rate and have strict limitations
about where they can be used, sometimes only in the store that issued the card.

45. What is KYC?

The abbreviation KYC stands for ‘Know Your Customer’. It is the process through which a bank obtains information

m
about the identity and address of its customers. The Reserve Bank of India issues KYC guidelines under Section 35A of
the Banking Regulation Act, 1949. KYC guidelines aim to prevent banks from suffering losses due to money laundering

co
or terrorist financing activities. As per the guidelines, for the purpose of proof of identity, customers have to produce
one/two of the ‘Officially Valid Documents’ (OVDs), which include: 1. Passport 2. Driving License 3. Voter’s identity
card 4. PAN Card 5. Aadhar Card 6. NREGA Card
n.
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46. Define Online/Internet Banking?
ct

Online banking enables customers to access the bank’s information to manage their account and perform transactions
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through its website on the Internet. This is known as internet/online banking or e-banking. Routing banking tasks like
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operating the account, requesting cheque books, transferring funds, etc. can be done through secure connections via
online banking. Whenever you want to transfer funds to another person’s account through Internet banking, the IFSC
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code of the receiving bank is required.

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47. What is Capital to Risk Weighted Assets Ratio (CRAR)?

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Capital to Risk (Weighted) Assets Ratio (CRAR) is also known as Capital Adequacy Ratio (CAR). It is the ratio of a bank's
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capital to its risk. CRAR is arrived at by dividing the capital of the bank with the aggregated riskweighted assets for
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credit risk, market risk and operational risk.

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48. Define Non-Performing Assets (NPAs)? (HOT TOPIC OF THE YEAR 2017,READ IN DETAIL)

An asset (loan) becomes non-performing when it no longer generates income for the bank. Once the borrower fails to
make interest or principal payments for 90 days, the loan is considered to be NPA. NPAs can broadly be classified into
three categories:

1. Sub-standard Assets: A sub-standard asset is classified as NPA for a period less than or equal to 12 months. This
category came into effect from March 31, 2005.

2. Doubtful Assets: A doubtful asset is classified as NPA for a period exceeding 12 months. This category came into
effect from March 31, 2005.

3. Loss Assets: A loss asset is one where loss has been identified by the bank or internal/external auditors or after RBI
inspection, but the amount has not been written-off wholly. In other words, it is an asset which is considered
uncollectible and of such a little value that its prolongation as a bankable asset is not justified, although there may be
some rescue or recovery value.

49. Why do NPAs occur?

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 कर्मण्यवे ाधिकारस्ते र्ा फलेषु कदाचन। र्ा कर्मफलहेतर्
ु भमर्ाम ते सं गोऽस्त्वकर्मणि॥

What is the impact of NPAs? NPAs are also termed as ‘bad loans’ or defaults. NPAs occur due to the failure to meet
financial obligations, non-payment of a loan instalment.

These loans can get executed due to the following reasons:

i. Normal banking operations.

ii. Bad lending practices.

iii. Incremental components due to internal bank management, like credit policy, terms of credit, etc.

iv. Competition as banks are selling unsecured loans to increase their own business.

NPAs do not just reflect badly in a bank’s account books, they badly impact the nation’s economy. Some of the direct
impacts of NPAs are:

i. Depositors do not get their rightful returns, and may lose uninsured deposits. Banks may begin charging higher
interest rates on some products to compensate for NPA losses.

ii. Bank shareholders are adversely affected.

iii. Bad loans imply redirecting of funds from good projects to bad ones. Hence, the economy suffers due to loss of

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good projects and failure of bad investments.

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iv. When banks do not get loan repayment or interest payments, liquidity problems may occur.

n.
Result of NPAs in an organization: io
i. Decrease in profitability.
ct
ii. Increased loan loss reserves iii. Reduced capital assets and lending limits.
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50. How can NPAs be reduced?

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NPAs can be reduced through some major steps that need to be taken by the banks. Some of these steps are:
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SARFAESI ACT
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The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI)
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empowers Banks and Financial Institutions to recover their NPAs without the intervention of the Courts.
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The Act provides three alternative methods for recovery of non-performing assets, which are:
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i. Securitization
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ii. Asset Reconstruction

iii. Enforcement of Security

The provisions of this Act are applicable only for NPA loans with outstanding amounts above Rs. 1.00 lac. NPA loans
where the amount is less than 20% of the principal and interest are not eligible to be dealt with under this Act. NPAs
should be backed by securities charged to the Bank by way of hypothecation, mortgage or assignment. Security
Interest by way of lien, pledge, hire purchase and lease not liable for attachment under sec. 60 of CPC, are not
covered under this Act. Any Security Interest created over Agricultural Land cannot be proceeded with.

The Act empowers the Bank:

a. To issue demand notice to the defaulting borrower and guarantor, calling upon them to discharge their dues in full
within 60 days from the date of the notice.

b. To give notice to any person who has acquired any of the secured assets from the borrower to surrender the same
to the Bank.

c. To ask any debtor of the borrower to pay any sum due or becoming due to the borrower.

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 कर्मण्यवे ाधिकारस्ते र्ा फलेषु कदाचन। र्ा कर्मफलहेतर्
ु भमर्ाम ते सं गोऽस्त्वकर्मणि॥

If the borrower fails to comply with the notice, the Bank may take recourse to one or more of the following
measures:

i. Take possession of the security

ii. Sell, lease or assign the right over the security to others

iii. Manage the security themselves or appoint any person to manage it.

Lok Adalats : The Lok Adalat is meant for recovery of small loans. According to RBI guidelines issued in 2001, they
cover NPAs up to Rs. 5 lakhs, where both suit filed and non-suit filed cases are covered.

Compromise Settlement: A scheme which provides a simple mechanism for recovery of NPAs, it is applied to advances
below Rs. 10 Crores.

Credit Information Bureau: A Credit Information Bureau maintains a database of individual defaulters and provides
this information to all banks so that they may avoid lending to these individuals and organizations.

Debt Recovery Tribunals : The Debt Recovery Tribunal Act was passed by Indian Parliament in 1993 with the objective
of facilitating the banks and financial institutions for speedy recovery of dues in cases where the loan amount is Rs. 10
lakhs and above.

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[Link] IS GDP/GNP/NATIONAL INCOME?

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ANS: I am attaching a pdf file to get know these concepts in detail, please read it in depth, It gonna help you in many

n.
ways. (Please find the attachment in the pdf) io
51. Explain Inflation?
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Inflation is a rise in the general level of prices of goods and services in an economy over a period of time. Due to a
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rise in general price level in the country, each unit of currency buys fewer goods and services. Inflation causes a
reduction in the purchasing power per unit of money, which is a real value in the medium of exchange and unit of
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account within the economy.

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Two major indices are used to calculate inflation:

xa

• Wholesale Price Index (WPI): The wholesale price index (WPI) is the price of a representative basket of wholesale
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goods i.e. goods that are sold in bulk and traded between organisations instead of consumers.
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• Consumer Price Index (CPI): The consumer price index (CPI) measures changes in the price level of a market basket
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of consumer goods and services purchased by households. Previously, the RBI gave more weightage to WPI than CPI
as the key measure of inflation. However, now the central bank has adopted CPI (Combined) to measure inflation after
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accepting some recommendations of the Urjit Patel Committee report.

52. What are Negotiable Instruments?

A negotiable instrument is a written order or unconditional promise assuring the payment of a specific amount of
money, either on demand, or at a pre-decided date, with the payer named on the document. Some examples of
negotiable instruments are promissory notes, bills of exchange, cheques, drafts, certificates of deposit, etc. Negotiable
instruments can be transferred from one person to another, who is known as a holder, in due course. Transferring a
negotiable instrument is called negotiating of the instrument. After the transfer, a new holder obtains full legal title
to the instrument.

53. What are Cheques?

A cheque is a document which guarantees payment of a specific amount of money on demand to a certain person or
to the bearer of the instrument. It is a negotiable instrument which can be transferred from one bank to another. It
can be issued by any individual/company/institution with a bank account. Given below are certain terms related to
cheques:

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 कर्मण्यवे ाधिकारस्ते र्ा फलेषु कदाचन। र्ा कर्मफलहेतर्
ु भमर्ाम ते सं गोऽस्त्वकर्मणि॥

1. Bearer Cheque -It is a cheque which is payable to the person who bears it or presents it for encashment at the bank.
Such cheques are risky because if they are lost, the finder of the cheque can easily collect the payment from the bank.

2. Order Cheque- An order cheque is one which is payable to a particular person. The payee can transfer an order
cheque to someone else by signing his or her name on the back of the cheque.

3. Uncrossed/Open Cheque- When a cheque is not crossed, it is known as an ‘Open Cheque’ or an ‘Uncrossed Cheque’.
These cheques may be cashed at any bank and the payment of these cheques can be obtained at the bank counter or
transferred to the bearer’s bank account. An open cheque may be a bearer cheque or an order cheque.

4. Crossed Cheque- A cheque is a crossed cheque when two parallel lines are drawn on the left corner of the cheque,
with or without additional words like ‘Account Payee Only’ or ‘Not Negotiable’. Such cheques cannot be cashed at the
bank counter but can only be credited to the payee’s account. This is a safer way of transferring money vis-à-vis
uncrossed/open cheques or bearer cheque.

5. Cheque Validity -A cheque is considered to be valid if the date entered on it is within 3 months of the actual date
on which it is presented. For example, a cheque with the date January 10, 2015 will be valid if it is presented to the
bank on or before April 10, 2015.

6. Antedated Cheque Cheques in which the drawer mentions a date earlier than the date on which it is presented to

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the bank, are called ‘antedated cheques’. Such a cheque is valid up to three months from the written date on the
cheque. For example, a cheque may be issued on January 10, 2015 but bear a date of December 20, 2014 and will be

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valid up to March 20, 2015.

n.
7. Post-dated Cheque Cheques on which the drawer mentions a future date from the date on which it is presented are
called ‘postdated cheques’. Banks will take action on the cheques only after the date which is written on the cheque.
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For example, if a cheque issued on January 10, 2015 bearing the date January 25, 2015 is presented, the bank will
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credit the payment only on or after January 25, 2015. The cheque will remain valid until April 25, 2015.
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8. Stale Cheque If a cheque is presented for payment after completion of three months from the date of issuance, it is
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called a ‘stale cheque’. After the expiry of three months, no payment will be made by the bank against the cheque.
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9. Mutilated Cheque When a cheque is torn or otherwise disfigured and not in good form, it is called a mutilated
cheque. The bank will not make payment against such a cheque without getting the drawer’s confirmation.
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10. Honour of Cheque When the bank processes the cheque and pays the amount mentioned on the cheque to the
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payee, by debiting the payer’s account, the cheque is said to be honoured.

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11. Dishonour of Cheque If the bank refuses to pay the amount written on the cheque to the payee, then the cheque
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is said to be dishonoured. There may be many reasons for dishonouring the cheque, but it is mostly because the drawer
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has not followed all the rules of issuing cheques or has drawn the cheque for an amount higher than the balance in
their account.

12. Bounced Cheque The term ‘bounced’ is used when a cheque is presented for clearance, but the amount mentioned
in the cheque exceeds the balance available in the account, causing the bank to dishonour that cheque. Some other
terms for bounced cheques are bad/hot cheques.

13. Bankers’ Cheque A cheque that is drawn on the account of the bank itself, instead of the account of the individual
that has drawn the cheque, is called bankers’ cheque.

14. Stop Payment The drawer of the cheque can stop the payment of the cheque before it is presented to the bank
for processing. This is done by instructing the payee bank to not honour the cheque once it is received for processing.
This is useful if the cheque is stolen during transfer from payer to payee or any such reason.

15. MICR MICR stands for Magnetic Ink Character Recognition. The MICR Code is a 9-digit code which uniquely
identifies a bank branch participating in the ECS Credit scheme. The first 3 digits represent the city, next 3 digits
represent the bank, and the last 3 digits represent the branch. The MICR Code allotted to a bank branch is printed on
the MICR band on the cheque leaves issued by that branch.

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 कर्मण्यवे ाधिकारस्ते र्ा फलेषु कदाचन। र्ा कर्मफलहेतर्
ु भमर्ाम ते सं गोऽस्त्वकर्मणि॥

54. What is a Demand Draft (DD)?

A demand draft is a negotiable instrument similar to a bill of exchange. A person making the order is known as the
drawer and the person specified in the order is called the drawee. A bank issues a DD to a client directing another
bank or one of its own branches to pay a certain sum to the specified party (Payee) directly without involving the
drawing bank after presenting.

Some of the differences between a cheque and a DD are:

i. A cheque is issued by an individual, whereas a DD is issued by a bank.

ii. The amount mentioned on the DD is collected by the bank from the drawer prior to drawing the DD, whereas the
amount mentioned on the cheque is debited only when the cheque is presented for payment.

iii. The payment of a cheque can be stopped by the drawer of the cheque, whereas the payment of a DD cannot be
stopped.

iv. A cheque can bounce or be dishonoured, but a DD cannot bounce or be dishonoured because it is already paid for.
A DD will bounce only when the drawee bank does not have enough funds to honour the cheque.

v. A cheque can be made payable either to a bearer or to order. But a DD is always payable to order to a certain person

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or organization; it cannot be a bearer draft.

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55. What is Cheque Truncation System (CTS)?

n.
CTS is the process of stopping of flow of cheques from the presentee bank to the drawee bank for processing
through clearing houses. Instead, an electronic image of the cheque is transmitted to the drawee branch through the
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clearing house along with relevant information like data on the MICR band, date of presentation, presenting bank,
ct
etc. The RBI launched CTS as a pilot project in February 2008, following which CTS-2010 Standard Compliant Cheques
were made mandatory from December 2013.
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The major benefits of CTS are summarized as below:

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• Shorter clearing cycles

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• Superior verification and reconciliation processes

xa

• No geographical restrictions as to jurisdiction and transfer of cheques for processing

.e

• Operational efficiency for banks and customers

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• Reduction in operational risk and risks associated with paper clearing

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56. What is the Banking Ombudsman Scheme?

Introduced under Section 35A of the Banking Regulation Act, 1949 by the RBI with effect from 1995, it is a scheme
which enables bank customers to get their complaints/grievances related to banking services resolved to their
satisfaction. A senior official is appointed by the RBI to look into the customer’s complaints against deficiency of
various banks, which includes all Scheduled Commercial Banks, RRBs & Scheduled Primary Co-operative Banks.

Some aspects related to the Scheme:

i. There is no fee/charge for filing and resolving customers’ complaints.

ii. In case of any compensation for loss suffered by the complainant, the amount paid by the bank is limited to the
amount arising directly out of the act or omission of the bank or Rs. 10 lakhs, whichever is lower.

iii. For complaints regarding credit card operations for mental harassment and agony, the compensation will not
exceed 1 lakh rupees.

iv. If a complaint is not settled by an agreement within a period of one month, the Banking Ombudsman proceeds
further to pass an award.

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 कर्मण्यवे ाधिकारस्ते र्ा फलेषु कदाचन। र्ा कर्मफलहेतर्
ु भमर्ाम ते सं गोऽस्त्वकर्मणि॥

v. If dissatisfied with the decision passed by the Banking Ombudsman, one can approach the appellate authority
(within 30 days of the date of receipt of the award) which is vested with the Deputy Governor of the RBI.

57. What are NBFCs? (One of the most important topics)

NBFCs are financial institutions that provide services similar to banks without bearing a banking license. These
institutions typically are restricted from taking deposits from the public depending on the jurisdiction; however, the
operations of these institutions are still covered under a country’s banking regulations.

Services provided by the NBFCs include loans and credit facilities, private education funding, retirement planning,
trading in money market and underwriting stocks and shares, TFCs (Term Finance Certificate) and other obligations.

58. What is difference between banks & NBFCs?

Differences between banks & NBFCs are listed below:

i. NBFCs cannot demand or accept deposits

ii. NBFCs do not participate in payment and settlement system and hence, cannot issue cheques on themselves.

iii. NBFCs cannot issue demand drafts

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iv. The deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is unavailable to depositors
of NBFCs, unlike in case of banks.

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59. What are White Label ATMs (WLAs)?

n.
WLAs are non-bank ATMs/cash-dispensing machines owned and operated by NBFCs (non-banking financial
io
companies). Customers of any bank can use these machines to access their accounts for a fee.
ct
RBI has granted permissions to 4 NBFCs and issued certificates of authorisation to 3 more NBFCs to operate WLAs.
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These are as follows:

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Permission granted to:

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i. Tata Communications Payment Solutions Ltd

xa

ii. Muthoot Finance Ltd.

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iii. Prizm Payment Services iv. Vakrangee

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Certificate of authorisation issued to:

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i. BTI Payments ii. SREI Infrastructure Finance iii. Riddhi Siddhi Bullions.
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The first WLA was launched by Tata Communications Payment Solutions Ltd. in June 2013 at Chandrapada, a village in
the Vasai-Virar belt in Maharashtra.

60. What are the various types of financial markets?

Financial markets can broadly be divided into money markets and capital markets.

A. Money market: It is a short-term investment avenue. These transactions are generally used for the purpose of
funding other transactions like government securities and meeting short term liquidity mismatches. The term for
money markets is typically up to one year. Depending upon the duration of the term, money markets are classified
into:

i. Overnight market or Call money: The tenure for it is one working day

ii. Notice money market: The tenure for these varies between 2 to 14 days

iii. Term money market: The tenure for these varies between 15 days to one year

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 कर्मण्यवे ाधिकारस्ते र्ा फलेषु कदाचन। र्ा कर्मफलहेतर्
ु भमर्ाम ते सं गोऽस्त्वकर्मणि॥

B. Capital market: Capital market is a market for long term debt and equity shares. Buyers and sellers engage in trade
of financial securities like bonds, stocks, etc. It also includes private placement sources of debt and equity as well as
organized markets like stock exchanges.

61. What is Commercial Paper (CP)?

It is a promissory note issued by financial institutions that have a very short maturity period. The Reserve Bank of India
sets an umbrella limit for corporates, private dealers (PDs) and all-India financial institutions to raise short-term
resources and issue CPs in denominations of Rs 5 lakh and multiples thereafter. CPs can be issued for maturities
ranging from a minimum of 7 days to a maximum of up to one year from the date of issue.

62. What is Certificate of Deposit (CD)?

It is a money market instrument equivalent to a promissory note which is issued by a bank. The smallest amount for
which a CD can be issued is Rs. 1 Lakh and its multiples. Banks can issue CDs for maturities from 7 days to one year
whereas eligible FIs (All India Financial Institutions) can issue for maturities from 1 to 3 years.

63. What is Islamic banking?

Islamic banking is the term used to describe banking and its related activities based on the Shariah (Islamic law) and
its practical applications throughout the development of Islamic economics. According to the Shariah, fixed or

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floating payment or acceptance of specific interest or fee for loan of money is completely prohibited. The RBI norms

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are at odds with the concept of Islamic banking. Banking operations in India implement interest since the banks
borrow money on which it also pays interest. Since Islamic banking does not permit charging or taking of interest, it

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 कर्मण्यवे ाधिकारस्ते र्ा फलेषु कदाचन। र्ा कर्मफलहेतर्
ु भमर्ाम ते सं गोऽस्त्वकर्मणि॥

FEW MORE SUGGETIONS:

What should you wear to a Bank Interview?

A candidate's attire plays a supporting role in the interview as it is the first thing observed by an interviewer. Some
people dress up for an interview as they would dress up for a party or a date which is a big turn off for the
interviewers. Your attire at work place should be as per the environment and work culture.

The work environment at a bank is very formal where you may need to deal with a lot of customers as well. Your
dress up should be appropriate and comfortable for you to deal with them. Interview is the perfect time to convey
your readiness for the job and your attire conveys a lot.

IT IS OFTEN SAID "DRESS UP LIKE YOU ARE IN YOUR DREAM POST AND NOT LIKE WHERE YOU CURRENTLY ARE" You
are not expected to wear very expensive clothes in the interview. All that is important is, you should be wearing
clean and well ironed decent clothes.

Attire for male candidates at a bank interview

• Most important is –you must be totally clean shave (totally means –total ) Do it 1 day before Interview and Make
sure no Blade Marks on your face.

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• A two piece matched suit is the best and safest choice. However, don't combine a suit jacket with pants that don't
match.

• Avoid wearing a very costly suit to the interview, let it be decent and nominal.
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• Choose a solid or very subtle weave pattern or plaid. Black, Navy blue and dark grey are a good color choice.
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• If you can't afford a suit, its OK to wear a light colored full shirt paired with dark trouser.
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• Pair the suit or shirt with a good tie - prefer it to be plain. Do not wear floral or ties with character prints.
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• Observe whether people from the bank are wearing a tie or not. In case they are not, you can avoid it too.
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• The belt should be dark in color too.

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• Avoid wearing any material with a glossy finish to the interview.

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• Wear dark socks with mid-calf length so that no skin is visible even when you sit down.
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• The candidate should wear black or brown colored formal shoes. Sport shoes to an interview are a big "NO"
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• Never try a new look before going to the interview. Take hair cut at least 3-5 days ago.

• The male candidates should only wear the watch. If you have got pierced ear, remove the ring.

Attire for female candidates at a bank interview

• Female candidates should try to find out about the culture of the bank before they go for the interview & dress
accordingly.

• The female candidates can choose from trousers paired with shirts, sarees and salwar - kameez. If you choose a
trouser, it should be dark colored paired with a light color formal shirt.

• Candidates wearing salwar-kameez should choose simple cotton suit in light shade. The suit must be simple and
not filled with too much embroidery or other work. Do not wear a party wear salwar suit. Do not wear deep neck
suits

• Keep the make-up conservative. Use a little make-up just to give a polished look.

• Avoid wearing dark color lipstick or nail colors.

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 कर्मण्यवे ाधिकारस्ते र्ा फलेषु कदाचन। र्ा कर्मफलहेतर्
ु भमर्ाम ते सं गोऽस्त्वकर्मणि॥

• The nails must be clean and well groomed. If you are wearing a nail color it should be light in colour which is even
applied on all the nails. Chapped nail polish looks bad.

• The hair must be neatly tied up. They should not bother you in the mid of the interview.

• Trousers should be paired with dark color formal shoes.

• Females wearing saree or salwarkameez can wear flat or lightly heeled chappals. Avoid wearing high heels to the
interview.

• If you are carrying a purse it must be simple and small. Avoid carrying large bags. Don't use red, green, blue, yellow
purses. Black and brown are the good choices.

Personal Questions asked in Bank Interview The ice breaking questions asked in bank interview are usually based on
personal details of the candidate and related to candidate's family, qualification, future planning and basic banking
knowledge.

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 कर्मण्यवे ाधिकारस्ते र्ा फलेषु कदाचन। र्ा कर्मफलहेतर्
ु भमर्ाम ते सं गोऽस्त्वकर्मणि॥

FEW EXPECTED PERSONAL QUESTIONS, AS I CAN’T GIVE A MODEL ANSWER  (SOME OF

THESE QUESTIONS ALREAY DISCUSSED ABOVE)
It is not enough to have solid answers only for the below questions but you need to be prepared for the full
spectrum of questions that may be presented.

Where have you come from and what is famous in your city?

The candidate must tell about his place of living- city and state. If the board further asks about any specifications,
then name of the district etc. should be told. He/she must tell about the famous things of his place. For ex:- a
candidate from Lucknow may tell about Imambara, chicken clothes,

"tehzeeb" of Lucknow etc. The key things to deal this question effectively are:

• The candidate must know about the local MLA and MP from his area. If any renowned personality belongs to that

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area, you should be aware of the details.

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• He must have full knowledge about that place, its history, famous monuments, personalities, rivers, at times even
number of railway stations in the city etc., also about the politics of that state-CM and ruling party and all other nitty

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• For ex: - A candidate from Ghazipur, U.P. was asked about cultivation of "Poppy seeds" as Ghazipur is famous for
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cultivation of poppy seeds.
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• At times, questions about local politics are also put forward like a candidate, from Amethi was asked about the
electoral battle between Rahul Gandhi and Kumar Vishwas form Amethi.
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• A good answer to such questions leaves a very positive impact on the board as it demonstrates your awareness
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about the surroundings and the fact that you are well prepared puts you ahead of others.
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• Tell me about yourself. (Even Qs related to your name/place can be expected if your name/place has prominence )
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• Why did you choose this career?

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• Tell us about your education?

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• When did you decide on Banking career?

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• Aren't you over qualified for this position?

• How will your professional knowledge be helpful in the Banking career?

• Do you have any plans for further education?

• Do you have any actual work experience?

• What have you been doing after graduation?

• Why are you leaving your current position? (for working professionals)

• What other career options do you have?

• What goals do you have in your career?

• How do you plan to achieve these goals?

• What do you know about banking?

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 कर्मण्यवे ाधिकारस्ते र्ा फलेषु कदाचन। र्ा कर्मफलहेतर्
ु भमर्ाम ते सं गोऽस्त्वकर्मणि॥

• What is a Bank?

• Why do you want to work in the Banking industry?

• What do you know about our company? (Should have an idea

• About important products from various banks, tag lines)

• Why are you interested in our company?

• Why don't you join some private company?

• How is your professional knowledge useful for our organization?

• Why should I hire you?

• What will you do if you get a better offer?

• Who is your role model?

• What are your short-term goals?

• What is your long-term objective?

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• Where do you see yourself, five years from now?

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• What is your greatest strength?

• What is your weakness?

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• What are your hobbies?
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• Tell us about your extracurricular activities.

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• Q's related to your achievements?

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• Are you a team player?

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• Do you handle pressure well?

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• Do you have any location preferences?

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• Will you relocate?

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Aren't you overqualified for PO post?

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Ans: Let them know that how your degree can help in banking sector and also relate your answer with future growth

FEW SUBJECT WISE QUESTIONS:

HERE, I am attaching a pdf file, read it in depth.(please find the attachment in the pdf)

Well ,I think I have covered all important topics and questions which are very important for your selection, but keep
remember, this capsule is for only guidance Purpose only.

And at last do not forget to get blessings from Your Parents. (Obviously you r blessed already)
If you found any mistake or have any query you can reach me via my website, join us on telegram –
[Link]/examselection, and mail me at aksworld92@[Link]

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 कर्मण्यवे ाधिकारस्ते र्ा फलेषु कदाचन। र्ा कर्मफलहेतर्
ु भमर्ाम ते सं गोऽस्त्वकर्मणि॥

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“THE REAL INTERVIEW AND YOUR SUCCESS DEPENDS ON

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ONE LETTER WORD –I “

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-Akash Srivastava
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