Indian Bank Interview Questions & Answers
Check Recently Asked Indian Bank Interview Questions & Answers from this article and prepare well for Indian Bank Interview Session. It is the perfect way to start preparation for any interview process.
Aspirants, who want to prepare well for Indian Bank Interview, they must go through the frequently asked Indian Bank Interview Questions. Following Indian Bank Interview Questions & Answers will helpful for you, if you want to clear the Bank Interview.
Indian Bank Interview Questions & Answers
Ques 1) Why do you choose bank job as your career?
Ans. You just say, “Job Security and Job in Bank of India is a privilege and it is a service to nation”
Ques 2) Tell us about yourself?
Ans. Introduce yourself, your education, your current job, etc in a short and sweet manner.
Ques 3) What is a bank?
Ans. A bank is a financial institution whose primary activity is to act as a payment agent for customers and to borrow and lend money. It is an institution for receiving, keeping, and lending money.
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Ques 4) What are the primary functions of a commercial bank?
Ans. The primary functions of a commercial bank include:
- Accepting deposits; and
- Granting loans and advances
Ques 5) Can you explain the reforms that taken place in the Indian banking industry?
Ans. The Narasimham Committee laid the foundation for the reformation of the Indian banking sector.Constituted in 1991, the Committee submitted two reports, in 1992 and 1998, which laid significant thrust on enhancing the efficiency and viability of the banking sector.
Ques 6) What are the functions of Reserve Bank of India?
Ans. mainly the functions of RBI are classified as follows:
- Bank of Issue
- Banker to Government
- Bankers’ Bank and Lender of the Last Resort
- Controller of Credit
- Custodian of Foreign Reserves
- Supervisory functions
- Promotional functions
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Ques 7) What are the components of the monetary policy of RBI?
Ans.The components of the monetary policy of RBI include CRR, Repo rate, reverse repo rate, SLR, MSF and Bank Rate.
Ques 8) What is Bank rate?
Ans. A Bank rate is the interest rate that is charged by a country’s central or federal bank on loans and advances to control money supply in the economy and the banking sector. This is typically done on a quarterly basis to control inflation and stabilize the country’s exchange rates.
A fluctuation in bank rates triggers a ripple-effect as it impacts every sphere of a country’s economy. For instance, the prices in stock markets tend to react to interest rate changes. A change in bank rates affects customers as it influences prime interest rates for personal loans.
Ques 9) What is Cash Reserve Ratio – CRR?
Ans. The Cash Reserve Ratio (CRR) refers to the liquid cash that banks have to maintain with the Reserve Bank of India (RBI) as a certain percentage of their demand and time liabilities.
For example if the CRR is 10% then a bank with net demand and time deposits of Rs 1,00,000 will have to deposit Rs 10,000 with the RBI as liquid cash.
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Ques 10) What is Statutory Liquidity Ratio – SLR?
Ans. Statutory Liquidity Ratio refers to the amount that the commercial banks require to maintain in the form of cash, or gold or govt. approved securities before providing credit to the customers.
Statutory Liquidity Ratio is determined and maintained by the Reserve Bank of India in order to control the expansion of bank credit.
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Ques 11) What is Repo rate?
Ans. whenever the banks have any shortage of funds they can borrow it from the central bank. Repo rate is the rate at which our banks borrow currency from the central bank. A reduction in the repo rate will help banks to get Money at a cheaper rate.
When the repo rate increases borrowing from the central bank becomes more expensive. The Reverse repo rate is the rate at which the central bank borrows from the banks, while the Repo rate is the rate at which the banks borrow from the central bank.
Ques 12) What Is Inflation?
Ans. Inflation is increase in price of products & decrease in value of money.
Ques 13) Difference between Repo rate and Bank rate?
Ans. The Main difference between Repo rate and Bank rate is that Repo rate is the discounting offered by the RBI on the monetary bill hold by the Banks.
Ques 14) Difference between debit and credit?
Ans. Debit is amount deducted from your account. Credit is amount deposited in your account. You transfer money to your friend then money is debited from your account and is credited to your friends account.
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Ques 15) Difference between debit card and credit card?
Ans. You should have account with a bank to get debit card. You can withdraw only the money present in your account. For example you have 1000 INR in your account then you can withdraw this much using your debit card.
You do not need to have account with bank to get credit card. You can spend certain amount of money from your credit card. The limit is called your credit limit.
Ques 16) What is Para Banking?
Ans: The term Para Banking includes all the services provided by banks apart from day to day banking such as Debit cards, Credit cards, Life Insurance products, Cash Management services etc.
Ques 17) What is exchange rate?
Ans.An exchange rate is a basically a rate, with the help of which one country’s currency can be exchanged with the currency of another country.
Ques 18) What is CBS?
Ans. CBS is centralized banking system. Bank branches which are fully computerized are called CBS branches.
Ques 19) What is Interest Rate?
Ans. Banks give a certain percentage of amount you deposited (called principal amount) this percentage is called interest rate. For example interest rate of 7% means Bank will pay you 7 INR per 100 INR per year. Central Bank (RBI) decides interest rates.
Ques 20) What is Internet Banking?
Ans. Internet banking is a system wherein customers can conduct their transactions through the Internet. This kind of banking is also known as e-banking or online banking.
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Ques 21) What is Amount?
Ans. Amount = Principal + Total Interest.
For example you deposited 1000 INR for 1 year at interest 10% then total amount is
1000 + 100 = 1100.
Ques 22) What is difference between current account and savings account?
Ans. Current Account — No minimum balance, No interest paid, used by business entities, overdraft facility
Savings account — Minimum balance needed, interest paid, used by individuals, no overdraft facility.
Ques 23) What is white label ATM?
Ans: The white label ATM refers to ATMs owned by corporate or private operators seeking to earn a commission by banks for transactions performed by their customers e.g. INDICASH by TATA group.
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Ques 24) What is brown label ATM?
Ans: The brown label ATM refers to the ATMs where investment, installation and maintenance is by a private operator but the license and branding is by a commercial bank.
Ques 25) What is the CAD?
Ans: The term CAD stands for current account deficit and it is the difference between the imports and exports of a nation in one financial year
Indian Bank Interview Questions/ Answers
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