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SBI PO Interview Questions | Mostly Asked Questions and Their Tricky Answers

SBI PO Interview Questions

Aspirants who are looking for SBI PO Interview Questions and their tricky answers, they are on right page. It is compulsory for the candidates to clear the interview phase for the final selection.

Candidates after qualifying SBI Prelims and SBI PO Mains now will have to appear for SBI PO Interview. So before appearing for Interview Round, candidate must check Mostly Asked Questions in Interview and Their Tricky Answers on this page.

SBI PO Interview Questions and their Answers

SBI is one of the most demanded banking organizations among the today’s youth as it provides good opportunities and waivers to its employees. Candidates must be wondering about the type of the questions that can be asked by the interview panel.

So to solve your queries, the team of recruitmentresult.com is hereby providing you Mostly Asked SBI PO Interview Questions and the ways to answer such questions. So have a look on below segment of this page…

SBI PO Interview Questions

The most difficult phase of recruitment process is Interview as random questions generally confuse intelligent people. Some of the candidates also get confused with simple questions which lead to their failure in the Interview.

One needs to be very careful while answering in front of the interviewers. Our banking experts have come up with some most common questions one should prepare for the interview round.

Question 1: What do you mean by FDI?

Answer: Foreign direct investment (FDI) is an investment in a business by an investor from another country for which the foreign investor has control over the company purchased.

Question 2.  What is a Bank?

Answer. A bank is a financial institution that accepts money from it’s customers for the purpose of lending.

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Question 3. What is a Cheque?

Answer. A Cheque is a negotiable instrument instructing a bank to pay a specific amount from a specific account.  In other words, A cheque is a bill of exchange drawn on a specified banker and payable on demand. A cheque can be dishonored for variety of reasons such as insufficient funds, signature mismatch, overwriting, cheque is 3 months+ old (stale), etc.

Question 4. What is a Demand Draft?

Answer. Demand Draft is a negotiable instrument that is used for effecting transfer of money. Since it’s a banker’s check, it can’t be dishonored.

Question 5. What is KYC?

Answer. KYC stands for ‘Know Your Customer‘. As per KYC guidelines prescribed by RBI, some personal information of the customer is required while opening an account (or renewal of old accounts!). The objective is to enable positive identification of customers by their respective Banks; and to prevent money laundering.

The documents as mandated under KYC guidelines are:

  • Photograph
  • Proof of identity: This includes Aadhar, Pan Card, Driving license, Govt ID, or any other document acceptable to Branch Manager
  • Proof of address: This includes Ration Card, Electricity Bill, or any other document acceptable to Branch Manager

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Question 6. What is Money Laundering ?

Answer. Money laundering means presenting illegally obtained money as legitimate by creating a complex chain of sub processes. This convoluted chain makes it difficult to trace the source of the illegitimate money.

Question 7. What do you know about RBI?

Answer. The Reserve Bank of India is the central bank of India. On the recommendation of Young Hilton Committee, it was established on 1st April,1935 in accordance with Reserve Bank of India Act, 1934.

Question 8. What are the functions of RBI?

Answer:

  • Regulate the issuance and circulation of Bank Notes
  • Banker to the Government
  • Banker to Banks
  • Custodian to Foreign Reserve of the country
  • Lender of last resort
  • Controller of Credit

Question9. What is a Monetary policy?

Answer. Monetary policy is a type of macroeconomic policy by which central monetary authority (RBI) controls the interest rates, thereby effecting control over supply of money in the economy. The primary motive for this policy is to maintain price stability & achieve high economic growth.

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Question10. What is Fiscal Policy?

Answer. Fiscal policy is a type of macroeconomic policy by which our government makes a strategic change to its spending and tax rates to influence a nation’s economy. Just like Monetary Policy, Fiscal Policy is another tool by which country’s economic conditions can be controlled.

Question11.  What is a Repo Rate?

Answer. Repo Rate is the rate at which RBI lends money to commercial banks. Whenever any bank faces shortage of funds, it can borrow from RBI. Decreasing Repo Rate will help banks avail more money at a cheaper rate. Vice versa, Increasing Repo rate will make borrowing money from RBI more expensive.

Question12. What is Reverse Repo Rate?

Answer. Reverse Repo rate is the rate at which RBI borrows money from banks. RBI uses this tool to drain excess money circulating in the banking system. Banks have absolutely no qualms about lending money to RBI since their money is in safe hands; not to mention a good interest, too.

Question13. What is LAF?

Answer. Liquidity adjustment facility (LAF) is a monetary policy tool which allows banks to borrow money, and adjust their daily liquidity mismatches, through repurchase agreements. LAF has two components: a) repo (repurchase agreement); and b) reverse repo.

When banks need liquidity to meet its daily requirement, they borrow from RBI through repo. The rate at which they borrow fund from RBI is called the Repo rate. When banks have excess liquidity, they park with RBI through the reverse repo. The rate at which they lend fund to RBI is called the Reverse Repo rate.

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Question14. What is CRR Rate?

Answer. Cash reserve Ratio (CRR) is the percentage of NDTL (Net Demand and Time Liabilities) that banks have to keep with RBI as cash. If RBI decides to increase the CRR percentage, the credit available to banks for lending comes down. Thus, RBI can increase CRR rate to drain out the excess money from the banks.

Question 15. What is Bank Rate?

Answer. Bank rate a.k.a discount rate, is the interest rate at which the central bank (RBI) charges loans and advances to commercial banks and other financial intermediaries. Bank rate is yet another tool at the disposal of the central bank (RBI) to effectively control the money supply.

Question 16.  What is SLR Rate?

Answer. SLR (Statutory Liquidity Ratio) is the percentage of it’s NDTL (Net Demand and Time Liabilities), a commercial bank has to maintain as liquid assets such as cash, gold or govt. approved securities (a.ka. govt. Bonds) before lending to its customers. SLR is a type of monetary Policy tool that RBI can use to effectively regulate the expansion of credit by the banks.

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Question17. What is PLR?

Answer. The Prime Interest Rate is the interest rate that a bank charges to it’s most financially sound (or high credit worthy) customers. This rate remains basically the same for most banks.

Question18. What is Base Rate?

Answer. It is the minimum rate of interest that a bank is allowed to charge from its customers. No bank can offer loans at a rate lower than Base rate to any of its customers unless mandated by the govt.

Question19. What is Deposit Rate?

Answer. Interest Rates paid by banks or other financial institutions on the cash deposited with them by the customer.

Question20. What are Basis Points?

Answer. BPS is an acronym for basic points and is used to indicate changes in rate of interest and other financial instruments.

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SBI PO Interview Questions provided on this page might be helpful to you to crack interview. If you have any queries regarding interview questions in SBI PO, then you can type your comment in below provided Comment box. Our experts will soon solve your queries.

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