Interview Digest

www.BankExamsToday.
com
Interview
Preparation Guide
By Ramandeep Singh
Ramandeep Singh
11/14/2014
www.BankExamsToday.com
1. Why do you want to enter banking?

Banking is one of the fastest growing sectors in India with more stable and high growth and more over
providing wide range of career opportunities for graduates. So I want to take an opportunity to join in a
bank.
2. What is the difference between Cheque and Demand Draft?

Both are used for transfer the amount b/w two accounts of same or different Bank.Cheque is written by an
individual and withdrawn from the account whereas Demand draft is issued by a bank where you have to
pay before issuing.
3.What are NBFCs and difference between NBFCs and Bank?

Non-bank financial companies (NBFCs) are financial institutions that provide banking services, but do not
hold a banking license. NBFCs do offer all sorts of banking services, such as loans and credit facilities,
retirement planning, money markets, underwriting, and merger activities. These institutions are not allowed
to take deposits from the public.
4. What is Private Banking?

Banking services offered to high net-worth individuals. Private banking institution assists the high net-worth
individual in investing his/her money in exchange for commissions and fees. The term "private" refers to the
customer service being
rendered on a more personal basis.
5. What is the Use of Computers in a Bank?

Computers are used for many purposes in banks like: Computer store details of customers account
information. Computers can solve billions of complex mathematical operations in fractions of a second.
Computers can be used for user authentication. Computers can be used on a network to instantly contact
other
branches. When you use an ATM, you are using a networked computer terminal. It's easier to
access/update the information. An employee can also check a Customer's account balance instantly.
Computers help a bank save time and money, and can be used as an aid to generate profits.
6. What is recession? What is the cause for the present recession?

It can be defined as if countrys GDP growth is negative for two or more consecutive years and the main
cause for the present recession is Sub-Prime crisis where it started in US.
www.BankExamsToday.com Page 2
7 What is Sub-prime crisis?

The current Subprime crisis is due to sub-prime lending. These are the loans given to the people having
low credit rating.
8 What is a Repo Rate?

Repo rate is the rate at which our banks borrow rupees from RBI. Whenever the banks have any shortage
of funds they can borrow it from RBI. A reduction in the repo rate will help banks to get money at a cheaper
rate. When the repo rate increases, borrowing from RBI becomes more expensive.
9. What is Reverse Repo Rate?

This is exact opposite of Repo rate. Reverse Repo rate is the rate at which Reserve Bank of India (RBI)
borrows money from banks. RBI uses this tool when it feels there is too much money floating in the banking
system. Banks are always happy to lend money to RBI since their money is in safe hands with a good
interest. An
increase in Reverse repo rate can cause the banks to transfer more funds to RBI due to this attractive
interest rates.
10. What is CRR Rate?

Cash reserve Ratio (CRR) is the amount of funds that the banks have to keep with RBI. If RBI decides to
increase the percent of this, the available amount with the banks comes down. RBI is using this method
(increase of CRR rate), to drain out
the excessive money from the banks.
11. What is SLR Rate?

SLR (Statutory Liquidity Ratio) is the amount a commercial bank needs to maintain in the form of cash, or
gold or govt. approved securities (Bonds) before providing credit to its customers. SLR rate is determined
and maintained by the RBI (Reserve Bank of India) in order to control the expansion of bank credit. SLR
is determined as the percentage of total demand and percentage of time liabilities.Time Liabilities are the
liabilities a commercial bank liable to pay to the customers on their anytime demand. SLR is used to control
inflation and propel growth.Through SLR rate tuning the money supply in the system can be controlled
efficiently.
12. What is Bank Rate?

Bank rate, also referred to as the discount rate, is the rate of interest which a Central Bank(Reserve Bank
of India) charges on the loans and advances that it extends to commercial banks and other financial
intermediaries. Changes in the bank rate are often used by central banks to control the money supply.
13. What is Inflation?

Inflation is as an increase in the price of bunch of Goods and services that projects the Indian economy. An
increase in inflation figures occurs when there is an increase in the average level of prices in Goods and
services. Inflation happens when there are fewer Goods and more buyers; this will result in increase in the
price of Goods, since there is more demand and less supply of the goods.
14. What is Deflation?

Deflation is the continuous decrease in prices of goods and services. Deflation occurs when the inflation
rate becomes negative (below zero) and stays there for a longer period.
15. What is PLR?

The Prime Interest Rate is the interest rate charged by banks to their most creditworthy customers (usually
the most prominent and stable business customers). The rate is almost always the same amongst major
banks. Adjustments to the prime rate are made by banks at the same time; although, the prime rate
does not adjust on any regular basis. The Prime Rate is usually adjusted at the same time and in
correlation to the adjustments of the Fed Funds Rate. The rates reported below are based upon the prime
rates on the first day of each respective month. Some banks use the name "Reference Rate" or "Base
Lending Rate" to
refer to their Prime Lending Rate.
16. What is Deposit Rate?

Interest Rates paid by a depository institution on the cash on deposit.
17. What is FII?

FII (Foreign Institutional Investor) used to denote an investor, mostly in the form of an institution. An
institution established outside India, which proposes to invest in Indian market, in other words buying Indian
stocks. FII's generally buy in large volumes which has an impact on the stock markets. Institutional
Investors includes pension funds, mutual funds, Insurance Companies, Banks, etc.
18 . What is FDI?
FDI (Foreign Direct Investment) occurs with the purchase of the physical assets or a significant amount of
ownership (stock) of a company in another country in order to gain a measure of management control (Or)
A foreign company having a
stake in a Indian Company.
19. What is IPO?

IPO is Initial Public Offering. This is the first offering of shares to the general public from a company wishes
to list on the stock exchanges.
20. What is Disinvestment?

The Selling of the government stake in public sector undertakings.
21. What is Fiscal Deficit?

It is the difference between the governments total receipts (excluding borrowings) and total expenditure.
22. What is Revenue deficit?

It defines that, where the net amount received (by taxes & other forms) fails to meet the predicted net
amount to be received by the government.
23. What is GDP?

The Gross Domestic Product or GDP is a measure of all of the services and goods produced in a country
over a specific period; classically a year.
24. What is GNP?

Gross National Product is measured as GDP plus income of residents from investments made abroad
minus income earned by foreigners in domestic market.
25. What is National Income?

National Income is the money value of all goods and services produced in a country during the year.
26 . What is Per Capita Income?

The national income of a country, or region, divided by its population. Per capita income is often used to
measure a country's standard of living.
27 . What is SEZ?
SEZ means Special Economic Zone is the one of the part of governments policies in India. A special
Economic zone is a geographical region that economic laws which are more liberal than the usual
economic laws in the country. The basic motto behind this is to increase foreign investment, development
of infrastructure, job opportunities and increase the income level of the people.
28. Functions of RBI?

The Reserve Bank of India is the central bank of India, was established on April 1,1935 in accordance with
the provisions of the Reserve Bank of India Act, 1934.The Reserve Bank of India was set up on the
recommendations of the Hilton Young Commission. The commission submitted its report in the year 1926,
though the bank was not set up for nine years.To regulate the issue of Bank Notes and keeping of reserves
with a view to securing monetary stability in India and generally to operate the currency and credit system
of the country to its advantage."
Banker to the Government: Performs merchant banking function for the central and the state governments;
also acts as their banker.
Banker to banks: Maintains banking accounts of all scheduled banks.
29. What is monetary policy?

A Monetary policy is the process by which the government, central bank, of a country controls
(i) the supply of money,
(ii) availability of money, and
(iii) cost of money or rate of interest, in order to attain a set of objectives oriented towards the growth and
stability of the economy.
30. What is Fiscal Policy?

Fiscal policy is the use of government spending and revenue collection to influence the economy. These
policies affect tax rates, interest rates and government spending, in an effort to control the economy. Fiscal
policy is an additional method to determine public revenue and public expenditure.
31 What is bank and its features and types?

A bank is a financial organization where people deposit their money to keep it safe. Banks play an
important role in the financial system and the economy. As a key component of the financial system, banks
allocate funds from savers to borrowers in an efficient manner.
32. What is Right to information Act?

The Right to Information act is a law enacted by the Parliament of India giving citizens of India access to
records of the Central Government and State Governments.The Act applies to all States and Union
Territories of India, except the State of Jammu and Kashmir - which is covered under a State-level law. This
law
was passed by Parliament on 15 June 2005 and came fully into force on 13th October 2005.
33. What is Cheque?

Cheque is a negotiable instrument instructing a Bank to pay a specific amount from a specified account
held in the maker/depositor's name with that Bank. A bill of exchange drawn on a specified banker and
payable on demand.Written order directing a bank to pay money.
34. What is demand Draft?

A demand draft is an instrument used for effecting transfer of money. It is a Negotiable Instrument. Cheque
and Demand-Draft both are used for Transfer of money. You can 100% trust a DD. It is a banker's cheque.
A cheque may be dishonored for lack of funds a DD can not. Cheque is written by an individual and
Demand draft is issued by a bank. People believe banks more than individuals.
35. What is a NBFC?

A non-banking financial company (NBFC) is a company registered under the Companies Act, 1956 and is
engaged in the business of loans and advances, acquisition of shares/stock/bonds/debentures/securities
issued by government, but does not include any institution whose principal business is that of agriculture
activity, industrial activity, sale/purchase/construction of immovable property. NBFCs are doing functions
akin to that of banks; however there are a few differences:
(i)A NBFC cannot accept demand deposits (demand deposits are funds deposited at a depository
institution that are payable on demand -- immediately or within a very short period -- like your Current or
Savings Accounts.)
(ii) it is not a part of the payment and settlement system and as such cannot issue cheques to its
customers; and
(iii) Deposit insurance facility of DICGC is not available for NBFC depositors unlike in case of banks.
36. What is NABARD?

NABARD was established by an act of Parliament on 12 July 1982 to implement the National Bank for
Agriculture and Rural Development Act 1981. It replaced the Agricultural Credit Department (ACD) and
Rural Planning and Credit Cell
(RPCC) of Reserve Bank of India, and Agricultural Refinance and Development Corporation (ARDC). It is
one of the premiere agency to provide credit in rural areas. NABARD is set up as an apex Development
Bank with a mandate for facilitating credit flow for promotion and development of agriculture, small-scale
industries, cottage and village industries, handicrafts and other rural crafts.
37. What is SIDBI?

The Small Industries Development Bank of India is a state-run bank aimed to aid the growth and
development of micro, small and medium scale industries in India. Set up in 1990 through an act of
parliament, it was incorporated initially as a wholly owned subsidiary of Industrial Development Bank of
India.
38. What is SENSEX and NIFTY?

SENSEX is the short term for the words "Sensitive Index" and is associated with the Bombay (Mumbai)
Stock Exchange (BSE). The SENSEX was first formed on 1-1-1986 and used the market capitalization of
the 30 most traded stocks of BSE, where as NSE has 50 most traded stocks of NSE. SENSEX IS THE
INDEX OF
BSE. AND NIFTY IS THE INDEX OF NSE. BOTH WILL SHOW DAILY
TRADING MARKS. Sensex and Nifty both are an "index. An index is basically an indicator it indicates
whether most of the stocks have gone up or most of the stocks have gone down.
39. What is SEBI?

SEBI is the regulator for the Securities Market in India. Originally set up by the Government of India in
1988, it acquired statutory form in 1992 with SEBI Act 1992 being passed by the Indian Parliament. Chaired
by C B Bhave.
40. What are Mutual funds?

Mutual funds are investment companies that pool money from investors at large and offer to sell and buy
back its shares on a continuous basis and use the capital thus raised to invest in securities of different
companies. The mutual fund will have a fund manager that trades the pooled money on a regular basis.
The net proceeds or losses are then typically distributed to the investors annually. A company that invests
its clients' pooled fund into securities that match its declared financial objectives. Asset management
companies provide investors with more
diversification and investing options than they would have by themselves. Mutual funds, hedge funds and
pension plans are all run by asset management companies. These companies earn income by charging
service fees to their clients.
41. What are Non Performing Assets?

Non Performing Assets, also called non-performing loans, are loans, made by a bank or finance company,
on which repayments or interest payments are not being made on time. A debt obligation where the
borrower has not paid any previously
agreed upon interest and principal repayments to the designated lender for an extended period of time. The
nonperforming asset is therefore not yielding any income to the lender in the form of principal and interest
payments.
42. What is Recession?

A true economic recession can only be confirmed if GDP (Gross Domestic Product) growth is negative for a
period of two or more consecutive quarters.
43. What is Foreign Exchange Reserves?

Foreign exchange reserves (also called Forex reserves) in a strict sense are only the foreign currency
deposits and bonds held by central banks and monetary authorities. However, the term in popular usage
commonly includes foreign exchange and gold, SDRs and IMF reserve positions.
44. What is the difference between Nationalized bank and Private Bank ?
A Nationalized bank is one that is owned by the government of the country. Since the people decide who
the government is, they are also referred to as public sector banks. The government is responsible for the
money deposited into the accounts of
these banks. Whereas a private sector bank is one that is owned by an independent individual or a
company that is controlled by a few individuals. In short, the bank is owned by someone else and they run
the bank. The person owning/running the bank is responsible for the money deposited into the accounts of
these banks.
45. What is CRM?

Customer Relationship Management (CRM) refers to the ability to understand, anticipate and manage the
needs of the customer, interaction and relationship resulting in increased profitability through revenue and
margin growth and operational efficiencies.
46. What is Dematerialisation ?

Dematerialisation is a process by which the paper certificates of an investor are taken back by the
company/registrar and actually destroyed and an equivalent number of securities are credited in electronic
holdings of that investor.
47. What is Derivative ?

A derivative is a financial contract that derives its value from another financial product/commodity (say spot
rate) called underlying (that may be a stock, stock index, a foreign currency, a commodity). Forward
contract in foreign exchange transaction, is a simple form of a derivative.
48. What is Bancassurance ?

Bancassurance stands for distribution of financial products particularly the insurance policies (both the life
and non-life), also called referral business, by banks as corporate agents, through their branches located in
different parts of the country.
49. What is LAF ?

Liquidity Adjustment Facility (LAF) was introduced by RBI during June, 2000 in phases, to ensure smooth
transition and keeping pace with technological up-gradation.
50. What is Money Laundering ?

Money laundering means acquiring, owning, possessing or transferring any proceeds (of money) of crime
or knowingly entering into any transaction related to proceeds of the crime either directly or indirectly or
concealing or aiding in the
concealment of the proceeds or gains of crime, within or outside India. It is a process for conversion of
money obtained illegally to appear to have originated from legitimate sources.
Common Interview Questions in Banks

1. Can you tell me a little about yourself?
This question seems simple, so many people fail to prepare for it, but it's crucial.
Here's the deal: Don't give your complete employment (or personal) history. Instead give a pitchone thats
concise and compelling and that shows exactly why youre the right fit for the job. Start off with the 2-3
specific accomplishments or experiences that you most want the interviewer to know about, then wrap up
talking about how that prior experience has positioned you for this specific role.
2. What do you know about the Bank?

Any candidate can read and regurgitate the companys About page. In of banking exams read about us
page of every bank.
So, when interviewers ask this, they aren't necessarily trying to gauge whether you understand the mission
they want to know whether you care about it. Start with one line that shows you understand the company's
goals, using a couple key words and phrases from the website, but then go on to make it personal. Say, Im
personally drawn to this mission because or I really believe in this approach because and share a
personal example or two.
3. Why do you want this job?

Again, companies want to hire people who are passionate about the job, so you should have a great answer
about why you want the position. (And if you don't? You probably should apply elsewhere.) First, identify a
couple of key factors that make the role a great fit for you (e.g., I love customer support because I love the
constant human interaction and the satisfaction that comes from helping someone solve a problem"), then
share why you love the company (e.g., Ive always been passionate about education, and I think you guys
are doing great things, so I want to be a part of it).
4. Why should we hire you?

This question seems forward (not to mention intimidating!), but if you're asked it, you're in luck: There's no
better setup for you to sell yourself and your skills to the hiring manager. Your job here is to craft an answer
that covers three things: that you can not only do the work, you can deliver great results; that you'll really fit
in with the team and culture; and that you'd be a better hire than any of the other candidates.
5. What are your strengths?
I recommends you to be accurate (share your true strengths, not those you think the interviewer wants to
hear); relevant (choose your strengths that are most targeted to this particular position); and specific (for
example, instead of people skills, choose persuasive communication or relationship building). Then,
follow up with an example of how you've demonstrated these traits in a professional setting.
6. What do you consider to be your weaknesses?

What your interviewer is really trying to do with this questionbeyond identifying any major red flagsis
to gauge your self-awareness and honesty. So, I can't meet a deadline to save my life is not an optionbut
neither is Nothing! I'm perfect! Strike a balance by thinking of something that you struggle with but that
youre working to improve. For example, maybe youve never been strong at public speaking, but you've
recently volunteered to run meetings to help you be more comfortable when addressing a crowd.
7. What is your greatest professional achievement?

Nothing says hire me better than a track record of achieving amazing results in past jobs, so don't be shy
when answering this question! A great way to do so is by using the S-T-A-R method: Set up the situation
and the task that you were required to complete to provide the interviewer with background context (e.g., In
my last job as a junior analyst, it was my role to manage the invoicing process), but spend the bulk of your
time describing what you actually did (the action) and what you achieved (the result). For example, In one
month, I streamlined the process, which saved my group 10 man-hours each month and reduced errors on
invoices by 25%.
8. Tell me about a challenge or conflict you've faced at work, and how you dealt with it.
In asking this question, your interviewer wants to get a sense of how you will respond to conflict. Anyone
can seem nice and pleasant in a job interview, but what will happen if youre hired and Gladys in
Compliance starts getting in your face? says Skillings. Again, you'll want to use the S-T-A-R method,
being sure to focus on how you handled the situation professionally and productively, and ideally closing
with a happy ending, like how you came to a resolution or compromise.
9. Where do you see yourself in five years?

If asked this question, be honest and specific about your future goals, but consider this: A hiring manager
wants to know
a) if you've set realistic expectations for your career,
b) if you have ambition (a.k.a., this interview isn't the first time you're considering the question), and
c) if the position aligns with your goals and growth.
Your best bet is to think realistically about where this position could take you and answer along those lines.
And if the position isnt necessarily a one-way ticket to your aspirations? Its OK to say that youre not quite
sure what the future holds, but that you see this experience playing an important role in helping you make
that decision.
10. What's your dream job?

Along similar lines, the interviewer wants to uncover whether this position is really in line with your
ultimate career goals. While Indian Idol might get you a few laughs, a better bet is to talk about your goals
and ambitionsand why this job will get you closer to them.
Best answer should I want to become the branch manager with in next 5 years. I will appear for JAIIB and
CAIIB exams and I will continue with my studies.
11. What other exams you have appeared for?

Banks wants to find out whether you're serious about the industry.
Often the best approach is to mention that you are exploring a number of other similar options. It can be
helpful to mention the various exams you appeared for and going to appear for in upcoming weeks. This will
prove your level of seriousness for recruitment exams.
12. Why are you leaving your current job?

This is a toughie, but one you can be sure you'll be asked. Definitely keep things positiveyou have nothing
to gain by being negative about your past employers. Instead, frame things in a way that shows that you
need financial stability and government job has a social status in the society.
13. Why were you unemployed?

OK, if you get the admittedly much tougher follow-up question as to why you were unemployed for last 1
year(and the truth isn't exactly pretty), your best bet is to be honest (the job-seeking world is small, after all).
But it doesn't have to be a deal-breaker. Share how youve grown and how you approach your job and life
now as a result. If you can position the learning experience as an advantage for this next job, even better.
14. What are you looking for a position in a Bank?

Hint: Ideally the same things that this position has to offer. Be specific.
15. What type of work environment do you prefer?

Hint: Ideally one that's similar to the environment of the company you're applying to. Be specific.
16. What's your management style?

The best managers are strong but flexible, and that's exactly what you want to show off in your answer.
(Think something like, While every situation and every team member requires a bit of a different strategy, I
tend to approach my employee relationships as a coach...) Then, share a couple of your best managerial
moments (if you have some)
17. What's a time you exercised leadership?

Depending on what's more important for the role, you'll want to choose an example that showcases your
project management skills (spearheading a project from end to end, juggling multiple moving parts) or one
that shows your ability to confidently and effectively rally a team. And remember: The best stories include
enough detail to be believable and memorable, says Skillings. Show how you were a leader in this
situation and how it represents your overall leadership experience and potential.
18. What's a time you disagreed with a decision that was made at work?
Everyone disagrees with the boss from time to time, but in asking this question, hiring managers want to
know that you can do so in a productive, professional way. You dont want to tell the story about the time
when you disagreed but your boss was being a jerk and you just gave in to keep the peace. And you dont
want to tell the one where you realized you were wrong. Tell the one where your actions made a positive
difference on the outcome of the situation, whether it was a work-related outcome or a more effective and
productive working relationship.
19. How would your boss and co-workers describe you?

First of all, be honest (remember, if you get this job, the hiring manager will be calling your former bosses
and co-workers!). Then, try to pull out strengths and traits you haven't discussed in other aspects of the
interview, such as your strong work ethic or your willingness to pitch in on other projects when needed.
20. Why was there a gap in your employment?

If you were unemployed for a period of time, be direct and to the point about what youve been up to (and
hopefully, thats a litany of impressive volunteer and other mind-enriching activities, like blogging or taking
classes). Then, steer the conversation toward how you will do the job and contribute to the organization: I
decided to take a break at the time, but today Im ready to contribute to this organization in the following
ways.
21. Can you explain why you changed career paths?

Don't be thrown off by this questionjust take a deep breath and explain to the hiring manager why you've
made the career deicions you have. More importantly, give a few examples of how your past experience is
transferrable to the new role. This doesn't have to be a direct connection; in fact, it's often more impressive
when a candidate can make seemingly irrelevant experience seem very relevant to the role.
22. How do you deal with pressure or stressful situations?

"Choose an answer that shows that you can meet a stressful situation head-on in a productive, positive
manner and let nothing stop you from accomplishing your goals,". A great approach is to talk through your
go-to stress-reduction tactics (making the world's greatest to-do list, stopping to take 10 deep breaths), and
then share an example of a stressful situation you navigated with ease.
23. What would your first 30, 60, or 90 days look like in this role?
Start by explaining what you'd need to do to get ramped up. What information would you need? What parts
of the company would you need to familiarize yourself with? What other employees would you want to sit
down with? Next, choose a couple of areas where you think you can make meaningful contributions right
away. (e.g., I think a great starter project would be diving into your email marketing campaigns and setting
up a tracking system for them.) Sure, if you get the job, you (or your new employer) might decide theres a
better starting place, but having an answer prepared will show the interviewer where you can add immediate
impactand that youre excited to get started.
24. What do you like to do outside of work?
Interviewers ask personal questions in an interview to see if candidates will fit in with the culture [and]
give them the opportunity to open up and display their personality, too,. In other words, if someone asks
about your hobbies outside of work, its totally OK to open up and share what really makes you tick. (Do
keep it semi-professional, though: Saying you like to have a few beers at the local hot spot on Saturday night
is fine. Telling them that Monday is usually a rough day for you because youre always hungover is not.)
27. If you were an animal, which one would you want to be?
Seemingly random personality-test type questions like these come up in interviews generally because hiring
managers want to see how you can think on your feet. There's no wrong answer here, but you'll immediately
gain bonus points if your answer helps you share your strengths or personality or connect with the hiring
manager. Pro tip: Come up with a stalling tactic to buy yourself some thinking time, such as saying, Now,
that is a great question. I think I would have to say
Use your creativity and be honest
28. How many tennis balls can you fit into a limousine?
1,000? 10,000? 100,000? Seriously?
Well, seriously, you might get asked brainteaser questions like these, especially in quantitative jobs. But
remember that the interviewer doesnt necessarily want an exact numberhe wants to make sure that you
understand whats being asked of you, and that you can set into motion a systematic and logical way to
respond. So, just take a deep breath, and start thinking through the math. (Yes, its OK to ask for a pen and
paper!)
30. What do you think we could do better or differently?

Hiring managers want to know that you not only have some background on the company, but that you're
able to think critically about it and come to the table with new ideas. So, come with new ideas! What new
features would you love to see? How could the company increase conversions? How could customer service
be improved? You dont need to have the companys four-year strategy figured out, but do share your
thoughts, and more importantly, show how your interests and expertise would lend themselves to the job.
31. Do you have any questions for us?

You probably already know that an interview isn't just a chance for a hiring manager to grill youit's your
opportunity to sniff out whether a job is the right fit for you. What do you want to know about the position?
The company? The department? The team?
You'll cover a lot of this in the actual interview, so have a few less-common questions ready to go. We
especially like questions targeted to the interviewer (What's your favorite part about working here?") or the
company's growth (What can you tell me about your new products or plans for growth?")
Banking concepts
1. Money Laundering: means acquiring, owning, possessing or transferring any proceeds of money of
crime. Black Money in short!
2. Hybrid Debt-Capital instruments: Capital Market instruments that combine certain characteristics of
equity and some of debt; any instrument which combines the qualities of 2 or more traditional instruments
will be referred to as a hybrid.
3. Pillars of Basel III: (i) Minimum Capital Standards

(ii) Supervisory Review
(iii) Market Discipline (Imp to know from interview point of view too.)
4. Financial Literacy: or financial education stands for being knowledgeable about and to be able to
effectively make use of financial resources, such as bankingb /investing etc.
5. Narrow Banking: is a particular system of banking, in which a bank places its funds in risk free assets
(ex.: govt. securities), with maturity period matching its liabilitys (when the bank has to pay back to the
customer) maturity timing this helps to maintain proper liquidity at the time of demand payment and their
funds have no chance of becoming an NPA.
So, narrow banking is like narrow mindedness and to play it safe!
6. Venture Capital: capital as you know is source of fund, so, venture capital is the capital or source of
fund which is used for financing new business ideas, which involves new technologies, high risk and
potential high returns!
7. Index Linked Bonds: is the kind of bonds, the redemption value of which increases or decreases
according to the movements in the rate of inflation. Wholesale Price Index is used as the inflation measure.
8. Z-Group shares: Shares of those companies which do not adhere (follow) the SEBIs listing agreements.
9. Casino Banking: No Banks are not running casinos!
This term is used to refer to the practice of Banks, doing risky speculative financial activities like trading in
the share market to earn profits and to show more profits in their balance sheet. This profit will be over and
above the normal business profits that they earn from banking activities!
10. AIR: Annual Information Return. This return is to be filed by banks with the income tax department;
this return helps the Tax authorities to look into transactions of tax payers.
1. IPO: Initial Public Offer when a listed company offers its shares to the public for subscription for the
first time.
2. Listed Company: is any company listed with SEBI; Securities Exchange Board of India, which is a
regulatory body for companies and their dealings with the public in the share market.
3. DEMAT or Dematerialisation: is the process of converting the physical share certificates into equivalent
number of electronic holdings in the Demat Account of the investor.
4. Blue Chip companies/stocks: are those companies and the stocks/shares of those companies which are
very highly priced as they have very high earning capacities. Blue chip companies are high profit making
companies which are expected to maintain their profitable performance in near future.
You will be amused to know that the term blue chip companies comes from the casinos!
In casinos, and specifically in the game of Poker (traditional ones!), there are many different coloured chips
green, red, black, blue the blue coloured chips have the highest value! Hence, someone decided to use
the term, blue chip to mean the high valued companies!
5. Bear/ Bear Market: When you say that an investor is expecting a bearish market, it means, that he
expects the prices of stocks in the share/capital market to fall.
6. Bull/ Bullish Market: When an investor expect the prices to rise in the capital market.
7. Dawn Raiding: refers to buying of huge amount of shares immediately after the stock market open!
8. Gilt edged securities: are referred to those securities which are issued by the Government.
9. Jobber: is a member broker of a stock exchange who only deals in buying and selling of securities from
and to other fellow brokers.
He does not deal with the public.
10. Kerb dealing: is the trading transactions done between members after official closing of the trading
hours.
11. Insider trading: is when a person who has privileged information or the inside information of a
company and its business- and uses this information to make transactions in the capital market to make huge
personal profits.
It is illegal!
12. Spot trading: is when shares are bought and taken delivery of and paid for.
13. Derivatives Market: where the value of the instruments bought and sold is based on value of the
underlying asset. The value of the instrument is derived from the value of the underlying asset and hence it
is known as Derivatives.
Derivatives Market is where trading in derivative instruments take place.
14. Speculation: is when a person, known as the speculator, tries to make money on the difference in prices
of stocks, by purchasing at lower price and selling at higher price.
Since he does not know for sure what is going to happen, it is called speculating, which means theory
/guesswork/supposing!
It is highly risky and very addictive and many people are known to go bankrupt and disrupt their lives when
sucked into this addictive world!
15. Price Rigging: Where a person or a group of persons having knowledge expert knowledge of the
working of a capital market artificially increases or decreases prices of securities of a company to make
money by cheating the investors. It can also be called as market manipulation.
16. Cum-dividend/rights/bonus means that the share which the investor is buying comes with rights to
dividend, or special rights attached with the shares or to bonus shares issued by the company to which the
shares belong.
17. Ex-dividend/rights/bonus means that the shares that an investor is buying does not have any right to
dividend/bonus/special rights issued by the company.
18. Bottom Fisher: an investor who looks to buy those share, the price of which has recently fallen to a
great extent.
19. Panic Buying: When investors buy large number of shares during price rise, thinking that the prices will
keep rising!
20. Caveat Emptor: which means, Let the Buyer Beware. Which means the buyer, in our case the
investor, needs to be knowledgeable about what he is doing and to be careful in his dealings.
Types of ATM and their features

List of various types of ATMs and their features.
WHITE LABEL ATM

White Label ATMs are those ATMs which set up, owned and operated by non-bank entities, which have
been incorporated under Companies Act 1956, and after obtaining RBIs approval.
BROWN LABEL ATMS

These ATMs are owned and maintained by service provider whereas bank whose brand is used on ATM
takes care of cash management and network connectivity.
ONLINE ATM
Online ATMs: These ATMs are connected to the banks database at all times and provide real time
transactions online. The withdrawal limits and account balances are constantly monitored by the bank.
Online ATMs are always watching out for you!
OFFLINE ATM
Offline ATMs: These ATMs are not connected to banks database- hence they have a predefined withdrawal
limit fixed and you can withdraw that amount irrespective of the balance in your account.
So if you did not have balance in your account, and you went to a offline ATM and withdrew money more
than the balance youll still get the cash at that time, and later on will run afoul with your bank balance!
Where banks may charge some penalty for exceeding your balance!
STAND ALONE ATM
Stand Alone ATMs are not connected with any ATM network- hence their transactions are restricted to the
ATMs branch and link branches only.
The opposite of Stand alone ATMs are Networked ATMs, which are connected on the ATM Network.
ONSITE ATM
Onsite ATMs: are the ATMs you find next to your Banks branch. They go side-by-side! Or in proper terms,
they are the ATMs installed within a branchs premises.
OFF-SITE ATM
Off-site ATMs are the ones which are installed anywhere, but within the branch premises. That is these are
not installed next to branch. So where are they installed?
Shopping Malls, shopping markets, airports, hospitals, business areas etc.!
Types of Foreign Currency Accounts

One of the important questions asked in bank interviews and banking awareness section of various banking
exams is about types of Foreign currency accounts.
TYPES OF FOREIGN CURRENCY ACCOUNTS

NOSTRO ACCOUNT
NOSTRO Account means OUR account with YOU in Italian.
If SBI maintained an account with a bank abroad, say Standard Chartered, New York, in dollars itll be
known as a Nostro account.
So, its SBIs account with/in Standard Chartered Bank (NY) in their local currency, which is dollars.
VOSTRO ACCOUNT
VOSTRO Account means YOUR account with US.
If Standard Chartered Bank (NY) had an account with SBI (Mumbai), in our local currency that is Rupees,
then this account of Standard Chartered will be called as Vostro Account by SBI (Mum)!
For Standard Chartered (NY), itll be a Nostro Account because for them SBI (Mum) is a foreign bank, in
a foreign country and rupees will be foreign currency!
Just give it a twirl these concepts and it should be clear!
LORRO ACCOUNT
LORRO Account: THEIR account with THEM!
If a 3rd party bank, in our case, say PNB, wanted to make some foreign currency transaction in $ but it
does not have a Nostro account/or, it does not have enough balance in its Nostro account what can it do?
Since, SBI has Nostro account with Standard Chartered (NY and in $), it can ask for SBIs help and use the
$ in this account to conduct its transaction successfully.
So in effect PNB is using SBIs (THEIR) foreign currency account to transact with Standard Chartered
(THEM)!
I hope these three terms are clear to you; pretty important from banking exam/interview point of view I
was asked in one interview and I knew!
Various Payment Systems in Banks in India

\
In a series of providing useful material for Banking Awareness section of various banking exams. Today I
am explaining various payment systems available in banks in a very simple language.
1. RTGS: REAL TIME GROSS SETTLEMENT
It is a centralized payment system through which inter bank payment instructions are processed and
settled, on GROSS basis, in REAL TIME.
Which simply means, that the transactions are settled as they happen.
Minimum amount is Rs. 2 lacs and there is no limit to maximum amount.
A service charge is charged by the banks for outwards transactions (making an RTGS) and nil for
inwards transactions (receiving an RTGS).
RTGS is used by banks to settle their inter-bank account transactions as well as customers high value
transactions.
It uses INFINET (Indian Financial Network) platform to operate.
2. NEFT: NATIONAL ELECTRONIC FUNDS TRANSFER
It is a nation-wide funds transfer system which facilitates fund transfer from any banks branch to any
other banks branch.
The difference between NEFT and RTGS is that NEFT settlements happen in batches, and on net
settlement basis. Where as RTGS is real time and gross settlement.
Net Settlement means, that transaction pertaining to a particular bank branches are kept on hold and
accumulated and then processed together in a batch with the net amount, which would either be
incoming or outgoing transfer.
There is no limit to minimum/maximum transaction value.
NEFT cannot be used for foreign remittances.
3. AEPS: AADHAR ENABLED PAYMENT SYSTEM
It is a payment system which uses Aadhar card number and an individuals online UIDAI
authentication, which are linked to a customers Bank account.
A customer will have to register his/her Aadhar number to their existing bank account, provided their
bank is AEPS enabled.
Through AEPS, customer can withdraw or deposit cash, make balance enquiry, and transfer funds.
The maximum amount of transaction per account per day is Rs.50,000.
These transactions are normally conducted by Business Correspondents (BCs) service centres.
4. MTSS: MONEY TRANSFER SERVICE SCHEME

It is a system of money transfer for transferring personal remittances from abroad to beneficiaries in
India.
Through this only inward remittances into India are permissible. No outward remittance allowed.
A maximum of Rs.50,000 can be remitted inwards as per the money value. And a maximum of 30
transactions per calendar year.
5. NEPAL REMITTANCE SCHEME:

It is a cross-border one-way remittance facility scheme for remittance from India to Nepal.
Maximum amount remittance is INR 50,000 and beneficiaries will receive in Nepalese Rupees.
Types of Charges over Securities in a Bank Loan

When you hear the word loan, what come to mind? Its difficult to get one, it is messy, its confusing all
those paper works, you need to keep your house as a security, then theres paying of installments and if
you dont pay theyll take away the house!
Oh, yes Loans are messy and complicated and more so when you need to study about them and specially
the types of charges.
I have always found it so confusing which one is hypothecation? When do we mortgage? What is a
lien?!
Today, Dear Readers, we are going to clear up the fog in these concepts and hopefully attempt to remember
it for life after all everyone takes a loan these days!
When we are planning to avail a bank loan, our second thought, right after weve thought of taking a loan,
will be which asset should I provide as a security?
SECURITY
Security in banking terms and specifically in relation to a bank loan refers to any asset on which a charge is
created by a bank in its favour; where any default occurs, i.e., the borrower (loan taker) is not able to pay the
loan amount back, then this asset is the Banks refuge!
The Bank will utilize this asset on which it has a charge, in the manner(s) allowed by various laws, and
recover its dues. Thus Banks interests (the loan amount and interest on the loan) are secured by creation of
a charge on some assets which belong to the borrower hence known as a security.
KINDS OF CHARGES:
Type of Is created Such as And the

Charge on possession of the
asset is with
I. Mortgage Immovable Land and Building Borroweri.e.,

Properties the one who has
taken the loan.
(properties
that do not
move!)
II. Pledge Movable Share Certificates/NSC Lender, i.e., the

goods or Certificates/Gold jewelley Bank = Pledgee
property
III. Movable Plant and Machinery/ Borrower.

Hypothecation goods or Automobiles
property
Usually for
car/vehicle
loanshas anyone
noticed that some
autos have
Hypothecate
to/with XYZ
Bank, abc
Branch..as on
xx/xx/xxxx
painted
in small letters on
the back.
IV. Lien Paper Shares/Debentures/Mutual

security Funds/ Bonds
V. Personal Is nothing By 3rd parties Like a guarantee

Liability but personal
guarantee
ALSO IMPORTANT TO KNOW:

(i) Fixed Charge is the kind of charge created on properties/assets the identity/nature/ownership of which
does not change. For example, a fixed charge would be created on Land & Building, Plant & Machinery.
(ii) Floating Charge is created on assets which undergo change of ownership like stocks of goods of a
shop. A trading concern, like a saree shop, may take a loan, pledging its stock (all the sarees) as security.
Such a stock which is its trading stock maybe used for business, i.e., it can be sold in the ordinary course of
its business. Thus the charge is on the stock, which keeps changing, because it is capable of being traded.
NPA - All you need to Know

Todays piece focuses on NPAs and Asset Classification. Every banker worth his salt should have the basic
knowledge of the second most important aspect of banking giving loans and then whatever happens when
a loan turns bad!!
Why second most important? Cause accepting deposits is the most important function of banks! If you
dont have the money, how will you give the loans?
Im gonna straight away start with NPAs and not waste any of our precious study time!
1. WHAT ARE NPAS?

NPA stands for Non-Performing Assets. Loans given by Banks are its assets. Banks have the right to receive
the amount back from the loan taker right? thus, Loans and Advances given by banks are their assets.
When such asset does not perform it becomes an NPA. Simple enough?!
2. WHAT IS MEANT BY LOANS/ASSETS NOT PERFORMING?

When we talk from a Banks point of view, what is a loan account supposed to do?
It is supposed to given the Bank regular instalments of principal and interest on such principal. Thus for a
Bank, a loan account is functioning or performing its required task when it is regularly receiving credits
of the instalment amounts.
When the credits stop i.e., when the customer stops paying instalments the loan account stops
functioning or performing.
3. AND WHEN DOES IT BECOME AN NPA?

Such a non-performing loan account is officially denoted or classified as NPA when the account has
remained non-performing for a period of more than 90 days.
That is the loan account has not received any credit towards instalment (interest and/or principal) for more
than 90 days which automatically means the interest/principal isOVERDUE for a period more than
90 days.
Guys, please note and remember the phrase, overdue for a period more than 90 days important to
appreciate the word overdue.
When you get October months telephone bill (which you have to pay by 1st December 2014) in the first
week of November, the amount is said to be due. When that amount of October months telephone bill is
still unpaid till January 2015 it is said to be overdue!
Same way - when instalment is overdue only then do the Banks classifies them as NPAs. They give time
till 90 days and wait and watch and even hope that the customer pays something and when 90 days are up
the account becomes an NPA automatically.
So overdue for more than 90 days.
4. WHY DO THE BANKS HOPE FOR THE CUSTOMER TO PAY BACK?

Because, any asset becoming bad is the asset owners loss, right?
Thus if a loan account goes bad defunct NPA it is the Banks loss!
And trust me the officers in charge of the loans and advances and the branch managers lose a lot of hair
when audit season comes and they have to deal with large NPAs not a good sight!
5. WHAT HAPPENS WHEN ACCOUNTS BECOME NPA?

First it is the starting sign that things could get worse Ill explain in the next point!
Bookishly though the implications of an account being classified as an NPA are these:
(i) Banks cannot credit income to their profit and loss account in with corresponding debit of the NPA
loan account unless any recovery takes place.
Banks income is the interest amount it receives on loans and Banks practice charging interest to the
loan account and crediting their Profit and Loss account when the interest becomes due. Since the loan
account has become NPA, now the Banks cannot due anymore interest charges.
Sort of like, after being classified as an NPA, the telephone company cannot send the customer anymore
bills for due amount!
But if the customer pays any amount, i.e., after the loan amount becoming NPA, if the customer pays any
amount to its credit then such an amount can be taken as an income for the bank and credited to its P & L
A/c.
(ii) Provision will have to be made which reduces the banks profits.
Banking norms mandate that when there is possibility that loss can happen in future, provision for the loss is
to be made in the present.
Think if you had a child whos very intelligent and ambitious and wants to go to USA to become an
astronaut in future you will needs funds when the time comes.
So you start putting some money aside/provisioning for the future NASA astronaut from today which
means your saving/the real income is getting less today, because you made a provision for an expense/loss
you think will most definitely happen in the future!
Same thing, the Banks now know that the customer has not paid for more than 90 days now but what if the
customer does not pay at all and the outstanding amount is Rs.10,00,000!
Its a Rs.10,00,000 loss to the Bank in the future!
And according to provisioning norms, the Banks will have to create a provision for this possible loss and
provision is made against income (try to understand with the NASA example).
So this would mean that a Banks profits will become less due to the heavy provisioning on NPA accounts.
And when profits decrease loan officers/ branch manager/ regional managers/ zonal managers all face the
heat from GMs/AGMs/DGMs/MDs and the shareholders and the stock markets! Phew!
(iii) All the loan accounts of the same customer, in the other branches of the same bank will be
classified as NPAs too (even if they are regular and instalments are being credited to them!)
Too bad, huh?
Imagine if a customer has loan accounts in 5 branches of the same bank and all are over crores that is the
real life scenario cause businesses take large loans. The bank gets NPAs in all those 5 accounts!
And there are many such customers!
6. ASSET CLASSIFICATION?
Asset classification, in other words loan classification, is an important thing to learn along with
NPAsexams may not have these, but it is a sure thing in interviews!
So this table for your pleasure reading!
Asset % of Period Important points

Classified as Provisioning
required
1. Standard Separate rates Not Are those assets which are

Asset are prescribed applicable regular and have no
for different defaulting in instalment
types of loans payments they are the good
such as 0.25%, assets!
1%...
(why risk?
Make a
provision just
in case they go
wrong!)
2. Sub i.e., these accounts have spent

Standard Has been 1 12 months after being
Assets classified as classified as NPA and has
- 15% NPA for a remained NPA during the
- Secured period not said period.
- 25% exceeding 12
- Unsecured months Secured are those which are
secured against any
security/ECGC/DICGC
3. Doubtful
Assets
Are those Thus, sub standard is NPA
which are assets which from 1-12 months.
doubtful - 25% has remained
- upto 1 year sub-standard
- 40% for more than
- above 1 12 months Doubtful is sub-standard for
year and more than 12 months.
upto 3 years
-100%
- above 3
years
4. Loss - 100% Not Loss assets are those which

Assets applicable have been classified as loss
assets by the Bank/Internal
Auditors of the Bank/External
or Statutory
Auditors/RBI inspectors
Basel II and Basel III Norms - All that you Need to Know
Today I am providing a useful write up on BASEL Accords, complying with the many requests from
readers.
1. BRIEF HISTORY:
The Basel Committee on Banking Supervision is an international banking regulatory committee formed
to develop banking supervisory regulations. It was established by the Governors of the Central Banks of a
group of 10 countries (initially) in 1974.
The objective of the BCBS is to gain a better understanding of the challenges faced by modern banking
system in terms of risk and it risk management and to frame supervisory and regulatory standards and
guidelines to help the banking system diminish these risks and function properly.
India is a member of the BCBS

alongwith Argentina, Australia, Belgium, Brazil,Canada, China, France, Germany, Hong
Kong, Indonesia, Italy, Japan, Korea,Luxembourg, Mexico, Netherlands, Russia, Saudi
Arabia, Singapore, South Africa,Spain, Sweden, Switzerland, Turkey, U.K. and USA.
The present Chairman of the BCBS is Stefan Ingves, who is the Governor of the central bank
of Sweden.
2. WHY NEEDED IN TODAYS BANKING SECTOR?

The Global Economic Crisis (2007-08) showed us all how banking sector in the 21st C, though highly
developed was still prone to the financial shocks. Also the spillover into the banking system from other
sectors was also seen, and thus it was felt globally that, as far as banking system was concerned, unified and
stricter norms should be welcomed.
3. BASEL II:
The predecessor of BASEL III and successor of BASEL I, was in place during the global economic
meltdown, and showed the shortcomings in the existing regulatory and supervisory framework.
The pillars of BASEL II are further down in the article.
4. BASEL III AND WHY IT HAD TO COME:

BASEL III which is formally known as the 3rd BASEL Accord was released in December, 2010 after
being ratified in November 2010 by G20 summit in Seoul with a view to upgrade the existing norms, i.e.,
that of Basel II.
BASEL III is the result of the financial crisis of 2007-2008, which made the BCBS feel that a more
stringent supervisory guidelines were required to prevent such mishaps from happening in the future;
Its aim, among other things, is to strengthen the banking sector to be able to withstand such severe
financial crisis without crumbling.
According to BCBS "Basel III is a comprehensive set of reform measures, developed by the Basel
Committee on Banking Supervision, to strengthen the regulation, supervision and risk management of
the banking sector".
5. THE PILLARS OF BASEL 2 AND 3 FOR YOUR COMPARISON BENEFIT!
5. DIFFERENCE BETWEEN BASELS II AND III?

As you can see from the two images, the difference in the wordings in the three pillarsthe word
enhanced has been added to the three pillars of BASEL III.
This simply means that supervisory/regulatory controls are now improved and better in BASEL III, than the
previous Basel II.
The important Key elements of BASEL III and its difference from BASEL II can be understood as follows:
(i) Capital and its stricter standards: BASEL III requires overall capital to be 10.5 % of the Risk Weighted
Assets (RWAs and important from exam/interview point of view!)
Where the BCBS recommends 10.5%, India has plans to achieve 11.5% of RWAs as the overall capital,
including Tier I, Tier II and Common Tier Equity and Capital Conservation Buffer (CCB) at 2.5%
(ii) Capital conservation buffer (at 2.5%) has been introduced with the aim of ensuring that banks maintain
a buffer (like a cushion or a shock absorber) of capital that can be utilized to withstand losses and
financial and economic crises.
(iii) Counter-cyclical buffer (CCCB), ranging within 0 -2.5% - has been introduced in BASEL III, to
achieve a broader and blanket goal of protecting the banking sector of excess credit growth which directly
means increase in risk in bank sector at such times.
6. INDIAN SCENARIO:
(i) As recently as October 2014, the RBI has revised Basel III liquidity guidelines to meet the liquidity
coverage ratio (LCR) threshold of 60 % by January 2015.
(ii) Wholly implementation of BASEL III in India is marked for 31 March, 2019 (revised from 31.3.2018);
while internationally it is 1 January, 2019.
Principles of Core Banking

The Banking systems and ultimately the banking industry operates on various factors and elements.
However there are five certain and very basic principles if you will which are the five pillars on which
the system of banking is built and which is instrumental in keep it going and viable.
The importance of these five pillars or principles can be understood from the view that, if any one of the
pillars falls the system crumbles.
PRINCIPLE 1: INTERMEDIATION
The essence of banking to intermediate between the people who have funds and the people who need
funds.
People who have excess or extra money which they are not spending immediately need someplace safe to
keep that money. They have no immediate use of that money, and hence would like to deposit it
somewhere; somewhere they know their money will be safe and they can easily get it back when required.
People who need extra money than what they have in hand, say for business purpose, of for sending their
child to college, or for sudden medical purpose, or for building an extra room in their house where will
they get the extra money?
Will they go and ask everybody in the neighbourhood as to who is willing to give them some cash?!
Thus, Banks play the role of financial intermediaries they mobilize funds from the people who have idle
funds (depositors) and give them to the people who are in the need of funds (loan takers).
Everyone saveswell almost everyoneand after PM NaMos Jan Dhan Yojanaeveryone will save
eventually in a bank!
And everyone takes a loan at least once in a lifetime!
Imagine a scenario where there were no Banks where would you keep the money? Where would you go
for a loan?
Hence, the role of the Banks as financial intermediaries is a very basic and a very important role.
PRINCIPLE 2: PROFITABILITY
Banks are not NPOs Not for Profit Organisations. Banks are very much a commercial organization with
aim to earn profit.
Even though banks have been established to do good for the people, it needs to make profits and the more
the better! Heres why!
Customers need bank statements/locker services/AC Banks/ATMs/Branches in every nook and crony of the
city and in every city of the country then there are employees, their salaries and retirement benefits and
pensions! How to meet these vast expenses?
A Bank will not survive if it didnt earn any income for paying off the above mentioned expenses.
By charging interests on loans/charges for banking services banks earn their income this is their primary
source of income which is used to meet its expenses and plan expansions.
Thus earning profits is very essential for a bank to be able to continue its operations.
PRINCIPLE 3: TRUST
Why would you deposit your hard earned money in a bank?
Because you know:
a. itll be kept safe.

b. youll be given some return on it by the Bank.
c. you can get it all back whenever you want it.
Even though you have kept your money in the bank, you know it is still yours and you have full right to
demand it back when you want this is the trust you have on your bank that it is taking care of your money.
If institutions like Banks did not invoke such feeling of trust from the people would they even exist? No!
NO organization can ever survive if there is trust deficit!
All those scams we hear of financial scams that is always end up exposed and their head scammer in jail.
Why? Because one fine day their faade falls people lose their trust on such investment routes and other
businesses operating on the same line bear the brunt too.
Thus building and up keeping of the trust factor is very essential in banking business it a very important
pillar if this pillar develops even a very thin crack the whole structure is definitely collapsing!
PRINCIPLE 4: LIQUIDITY
This, my friends is my personal favorite pillar liquidity.
You ask what in the world is liquidity?
I say, it is the ability of the bank to give loans, to be able to give you the money when you go for cash
withdrawals in ATMs and to make you happy with the big amount on maturity of FDs!
What is the one common thing in all the intelligent non-sense I just spewed? CASH.
Immediate availability of cash to pay off short term obligations is liquidity.
Imagine going to your local trusty bank to withdraw some money for Diwali shopping and the person at the
counter saying they dont have cash to give you your money! Oh no now thats a dud cracker!
Thus a bank always needs to have cash with them and cash is the most liquid item it is cash after all!
followed by T-bills of short periods/accounts of a bank with RBI or other banks/debtors/Bills Receivable
etc.
Please note land and building or even machineries, cars etc., are not liquid assets, because they cannot be
easily converted to cash.
Thus the items which can be easily converted into cash are known as cash equivalents; thus cash and cash
equivalents are the backbone of a companys liquidity status.
A Bank always compulsorily needs to have enough liquid assets to meet any demand liability that may arise
at any moment. A banks business, its trust factor, and its survival will get very badly affected if it werent
able to meet customers demand liabilities.
To ensure Banks always remain in comfortably liquid, RBI has prescribed compulsory CRR and SLR and
LAF (Liquidity Adjustment Facility for day to day mismatches of liquidity)!
So, now you know why the CRR and SLR! To safeguard the customers interest!
PRINCIPLE 5: SOLVENCY
Where liquidity was the ability to meet short term obligations, Solvency is the ability to meet long term
obligations.
What is long term in any business? I would say staying alive from business point of view is the most
important long term object of any business entity!
And to remain functioning and viable in the future, solvency is essential. Long term debts can be many kinds
such as repayment on debentures/bonds/shares issued, employees pensions and retirement funds, any
legal suit which may/may not result in the bank paying etc.
Long term funds also mean huge outlay or expenditure sometimes it may even lead to bankruptcy. Imagine
a bank going bankrupt! The horror!
Thus when an entity goes insolvent it enters bankruptcy; however, an entity that lacks liquidity can also be
forced to enter bankruptcy even if it is solvent no money means bankruptcy.
Thus liquidity and solvency are two very important financial parameters which are important for the
functioning of a bank.
Important events in Banking history

Time line of important events in Banking history important for interview purpose
TIMELINE OF BANKING EVENTS
Year Event
1770 Bank of Hindustan established by British
1806 Presidency Bank of Bengal goes on to become Imperial Bank
of India
1840 Presidency Bank of Bombay established
1843 Presidency Bank of Madras established

1865 Allahabad Bank established Oldest Joint Stock bank in India.
1881 Oudh Commercial Bank by Indian efforts entirely
1894 Punjab Commercial Bank (PNB), est. in Lahore - by Indian
Merchants 1stIndian effort to continue till present day.
1904 Concept of Co-op Banks introduced by Lord Curzon
1906 Swadeshi Movement
1913 - Banking Crisis & failure of 588 banks in various states
1917
1921 Imperial Bank Of India all Presidency Banks merges by British
Govt. which later on become SBI!
1926 Hilton Young Committees Report on Central Bank
1927 HYC Report introduced in Legislative Assembly and rejected

1933 Central Banking Investigation Committees report passed
1934 Reserve Bank Of India Act, 1934 on the basis of the 1933s report
1935 RBI established with Headquarter in Calcutta.
1937 HQ of RBI permanently moved to Bombay.
1944 Bretton Woods negotiation.
1949 1 Jan, 1949 nationalisation of RBI. Governor is C.D. Deshmukh
Also, Banking Regulation Act, 1949.
1952 A.D. Gorwala Committee recommends re-naming Imperial Bank
of India as State Bank Of India.
1954 ICICI founded
1955 1st July, 1955 State Bank of India
1964 IDBI formed as wholly owned subsidiary of RBI by Act of
Parliament
1969 Nationalisation of Banks: 19 July, 1969.
14 Banks. With authorised capital over Rs. 50 crores.
1980 Nationalisation of Banks: 6 banks
With authorised capital more than Rs. 200 crores.
1982 NABARD established.
1993 4 September, 1993 New Bank Of India + PNB merger.
Total of Nationalised banks now 14 + 6 1 = 19 excluding SBI and
its associates.
1994-96 Core Banking System started making its way into banks and branches

1998-99 Kisan Credit Card introduced by RBI with NABARD.
2004 IDBI enters banking sector
2005 Banking Ombudsman formed
2006 IDBI merges with IDBI Bank.
IDBI acquires United Western Bank.
2007 CTS (Cheque Truncation System) first implemented in NCR, New
Delhi deadline was 31 December 2013.
2008 IDBI Nationalised. Now total nationalised banks is 20 excluding SBI
and its associates.
SBI merges State Bank of Saurashtra 1st associate bank merger on
13 August, 2008.
2010 ICICI acquires Bank of Rajasthan
SBI merges State Bank of Indore 2nd associate bank merger on 26
August, 2010.
2011 Swabhiman Campaign under Financial Inclusion launched.
2012 RuPay launched by National Payments Corporation of India.
2013 Bhartiya Mahila Bank formed. 19 November, 2013.
Total nationalised banks is 21 + SBI and its 5 associates = 27.
2014 RuPay dedicated to India and formally introduced, by President
Pranab Mukherjee. It is Indias 1st indigenous/domestic payment card
scheme.
Jan Dhan Yojana for Financial Inclusion launched.
2 new banking license issued by RBI to Bandhan Financial Services
and IDFC.
RBI announced recall of pre-2005 currency notes.

2019 Proposed Basel III implementation
List of Bank Slogans and Punchlines

Bank Slogans or punchlines are one of the most common question asked by interviewers in bank job
interviews. These kind of questions are asked to check candidate's market awareness. After all general
awareness is the most important quality employers seeks in an employee. An employees who is aware about
current affairs of state is in better position to make better decisions and can adjust his selling strategies
according to market conditions. In the series of providing general awareness material, this week I am
providing Bank slogans of most influential multinational banks and Indian banks. In case of any mistake or
additions, please comment below.
MULTINATIONAL BANK SLOGANS
Name of the Bank Punch line
CITI Bank Let's get it done
Standard Chartered Bank Your Right Partner
HSBC Bank The World's Local Bank
Royal Bank of Scotland Make it happen
BNP Paribas The bank for a changing world
JPMorgan Chase Bank The right relationship is everything
Deutsche Bank A passion to perform
Scotia Bank Youre richer than you think
American Express Bank Do more
Barclays Bank Fluent in finance
DBS Bank Living, Breathing Asia
INDIAN BANK SLOGANS
Bank Name Bank Slogan
Allahabad Bank A tradition of trust
Andhra Bank Much more to do. With YOU in focus
Bank of Baroda India's International Bank
Bank of India Relationships beyond Banking
Bank of Maharashtra One Family One Bank
Bank of Rajasthan Together we Prosper
Canara Bank It's easy to change for those who you love, Together we
Can
Central Bank of India Build A Better Life Around Us, Central to you since
1911
Corporation Bank Prosperity for all
Dena Bank Trusted Family Bank
Federal Bank Your Perfect Banking Partner
HDFC Bank We Understand Your World
HSBC Worlds Local Bank
ICICI Bank "Hum Hai na..."
IDBI Bank Banking for all; "Aao Sochein Bada"
Indian Bank Taking Banking Technology to Common Man, Your

Tech-friendly bank
Indian Overseas Bank Good people to grow with
J & K Bank Serving to Empower
Karur Vysya Bank Smart way to Bank
Lakshmi Vilas Bank The Changing Face of Prosperity
Oriental Bank of Where every individual is committed

Commerce
Punjab and Sindh Where series is a way of life
Bank
Punjab National Bank The Name you can Bank Upon
State Bank of India The Nation banks on us; Pure Banking Nothing Else;
With you all the way
State Bank of You can always bank on us
Hyderabad
State Bank of Mysore Working for a better tomorrow
State Bank of Patiala Blending Modernity with Tradition
State Bank of A Long Tradition of Trust

Travancore
South Indian Bank Experience Next Generation Banking
Syndicate Bank Your Faithful And Friendly Financial Partner
The Economic Times Knowledge is Power
UCO Bank Honors Your Trust
Union Bank of India Good people to bank with
United Bank of India The Bank that begins with U
Vijaya Bank A Friend You can Bank Upon
Yes Bank Experience our expertise
Banks in India - Head quarters, Branches, Heads and Slogans

Important questions asked about Public Sector banks in bank exams.
RESERVE BANK OF INDIA (1935)

Head Quarter: Mumbai
Governor: Dr.Raghu Ram Rajan
4 Deputy Governors: Mr.Harun Rashid Khan, Mr.S.S. Mundra, Dr.Urjit R. Patel, Mr. R. Gandhi
It has 4 regional offices, 15 Branches and 5 sub-offices.
Functions: Formulates, implements and monitors the monetary policy, Regulates and supervise
the financial system, Regulates and supervise the payment systems, Manages the Foreign Exchange, Issue
Currency, Promotes national objectives, Short terms loans to Govt. under ways and means advances,
Inspections: Onsite thru CAMELS & CALCS and ofsite thru OSMOS, Nationalized in 1949,
Established in 1935 by RBI Act 1934.
STATE BANK OF INDIA (1955)
It was the 1st Joint Stock Bank of British India, Bank of Bengl, Bank of Bombay and Bank of Madras
amalamated on 27th Jan. 1921, Imperial Bank of India was converted into SBI in 1955, 7 subsidiary were
added in the year 1959 State Bank of Saurastra was merged in 2008 and State Bank of Indore was merged in
2010, Now SBI is having 5 Associate Banks, It is 3rd largest employer in India after Coal India and TCS
(among listed companies)
Chairman: Ms.Arundhati Bhattacharya
Slogans: Pure Banking nothing else, With you all the way, and A Bank of commonman.
ATMs more than 43000
Branches: more than 15143, 170 branches in 34 nations
ALLAHABAD BANK (1865)
Head Quarter: Kolkata

It is the oldest Joint Stock Bank of India
CMD: Mr.Rakesh Sethi
Slogan: A tradition of trust
Branches: more than 2500
ANDHRA BANK (1923)

Head Quarter: Hyderabad
It is founded by freedom fighter Mr.B.P. Sitaramaya
Chairman: Mr.CVR Rajendran
Slogan: For all your needs
BANK OF BARODA (1908)

Head Quarter: Vadodara
It is founded by Maharaja of Baroda Sir Sayajrao Gaekwad III
Chairman: S.S. Mundra
Slogan: Indias International Bank
BANK OF INDIA (1906)

Chairman: Mr.A.K. Mishra
Slogan: Rishton Ki Jamapunji
BANK OF MAHARASHTRA (1935)

Head Quarter: Pune
It has larged number of branches by any public sector financial institute in Maharashtra.
Chairman: Mr.Narendra Singh
Slogan: One Family One Bank
CANARA BANK (1906)

Head Quarter: Bangalore
Canara bank acquired Lakshmi Commercial Bank in bid in 1985.
Chairman: Mr.R.K. Dubey
Slogan: Together we can
CENTRAL BANK OF INDIA (1911)

Established in 1911
CMD: Mr.Rajeev Rishi
CORPORATION BANK (1906)

Head Quarter: Mangalore
Chairman & MD: Mr.S.R. Bansal
Slogan: Indias Most Customer Friendly Bank
INDIAN BANK (1907)

Head Quarter: Chennai
Chairman: Mr.T.M.Bashin
Slogan: Your tech. friendly bank
INDIAN OVERSEAS BANK (1937)

Head Quarter: Chennai
Chairman: Mr.M. Narendra
Slogan: Good people to grow with
ORIENTAL BANK OF COMMERCE (1943)

Head Quarter: New Delhi
Chairman: Nagesh Pydah
Slogan: Where evey individual is committed
PUNJAB & SIND BANK (1908)

Founding fathers are Bhai Vir Singh, Sir Sunder Singh Majithia, Sardar Tarlochan Singh.
Chairman: Jatinder Bir Singh
Slogan: Where service is way of life
PUNJAB NATIONAL BANK (1894)

It is Indigenous bank of India and 2nd largest Comm. Bank of India
Chairman: Mr.K.R. Kamath

Slogan: The name you can bank upon
SYNDICATE BANK (1925)

Head Quarter: Manipal
Chairman: Mr.Sudhir Kr. Jain
Slogan: Faithful Friendly
UCO (UNITED COMMERCIAL BANK) 1943

Chairman: Mr.Arun Kunal
Slogan: Trust and Excellence since 1904
UNION BANK OF INDIA (1919)

Mahatama Gandhi inaugurated it.
CMD: Mr.Arun Tiwari
Slogan: Good people to bank with
UNITED BANK OF INDIA (1950)

Chairman: Mr.Bhaskar sen
Slogan: The Bank That Begins With U
VIJAYA BANK (1931)

Head Quarter: Bangalore
CMD: Mr.V. Kannan
Slogan: A friend you can bank upon
State Capital CM Literacy Governor Populatio Borders
Rate n Density
Andhra Vijaywada, N.Chandrababu 67.66% ESL 308 km Maharashtra,
Pradesh Hyderabad Naidu Narasimhan sq Chhattisgarh,
Odisha, Tamil
Nadu,
Karnataka,
Telangana
Arunachal Itanagar Nabam Tuki 66.96% Lt. Gen 17 per Assam,
Pradesh Nirbhay km. sq Nagaland
Sharma
Assam Dispur Tarun Gogoi 73.18% Janaki 397 per Arunachal
Ballabh km. sq Pradesh,
Patnaik Manipur,
Meghalaya,
Mizoram,
Nagaland,
Tripura
Bihar Patna Jitan Ram Manji 63.82% Dnyandeo 1102 per Jharkhand,
Yashwantrao km. sq Uttar Pradesh,
Patil West Bengal
Chhattisgarh Raipur Raman Singh 71.04% Balramji 190 per Andhra
Das Tandon km. sq Pradesh,
Jharkhand,
Madhya
Pradesh,
Maharashtra,
Odisha, Uttar
Pradesh
Goa Panaji Manohar Parrikar 88.70% Mridula 390 per Maharashtra,
Sinha km. Karnataka
Gujarat Gandhinagar Anandiben Patel 80.18% Om Prakash 310 per Rajasthan,
Kohli km. Maharashtra,
Madhya
Pradesh
Haryana Chandigarh Bhupinder Singh 76.64% Kaptan 573 per Punjab,
Hooda Singh km. sq Himachal,
Solanki Rajasthan
Himachal Shimla Virbhadra Singh 83.78% Urmila 123 per Jammu and
Pradesh Singh km. sq Kashmir,
Punjab,
Haryana
Jammu and Jammu Omar Abdullah 66.7% Narinder 56 per Himachal
Kashmir (Winter) Nath Vohra km. sq Pradesh,
Srinagar Punjab
(Summer)
Jharkhand Ranchi Hemant Soren 67.6% Syed Ahmed 414 per Uttar Pradesh,
km. sq Chhattisgarh,
Odisha, West
Bengal
Karnataka Bengaluru Siddaramaiah 75.60% Vajubhai 320 per Goa,
Vala km. sq Maharashtra,
Andhra
Pradesh,
Tamil Nadu,
Kerela
Kerela Thiruvananth Oommen Chandy 93.91% P. 860 per Karnataka,
apuram Sathasivam km. sq Tamil Nadu
Madhya Bhopal Shivraj Singh 70.60% Ram Naresh 236 per Uttar Pradesh,
Pradesh Chauhan Yadav km. sq Chhattisgarh,
Gujarat,
Rajasthan
Maharashtra Mumbai Presidents Rule 82.9% Ch. 370 per Gujarat,
Vidyasagar km. sq Madhya
Rao Pradesh,
Chhattisgarh,
Karnataka,
Andhra
Pradesh, Goa
Manipur Imphal Okram Ibobi Singh 79.21% Vinod 120 per Nagalan,
Duggal km. sq Mizoram,
Assam
Meghalaya Shillong Mukul Sangma 75.84% K.K. Paul 130 per Assam
km. sq
Mizoram Aizawl Pu Lalthanhawla 91.58% Vinod 52 per Assam,
Kumar km. sq Manipur,
Duggal Tripura
Nagaland Kohima T.R. Zeliang 80.11% Padmanabha 119 per Arunachal
Acharya km. sq Pradesh,
Assam,
Manipur
Odisha Bhubaneswar Naveen Patnaik 73.45% S.C. Jamir 270 per Chhattisgarh,
km. sq Andhra
Pradesh,
Jharkhand,
West Bengal
Punjab Chandigarh Parkash Singh 76.68% Shivraj Patil 550 per Himachal
Badal km. sq Pradesh,
Haryana,
Jammu and
Kashmir,
Rajasthan
Rajasthan Jaipur Vasundhara Raje 68% Kalyan 201 per Gujarat,
Singh km. sq Haryana,
Punjab
Sikkim Gangtok Pawan Chamling 82.2% Shriniwas 86 per West Bengal
Dadasaheb km. sq
Patil
Tamil Nadu Chennai O. Paneerselvam 80.33% Konijeti 479 km Kerela,

Rosaiah sq Karnataka,
Andhra
Pradesh
Telangana Hyderabad Kalvakuntla 66.50% ESL 310 per Andhra
Chandrashekar Narasimhan km. sq Pradesh,
Rao Karnataka
Tripura Agartala Manik Sarkar 87.75% Padmanabha 350 per Assam,
Acharya km. sq Mizoram
Uttar Lucknow Akhilesh Yadav 67.68% Ram Naik 820 per Bihar,
Pradesh km. sq Chhattisgar,
Haryana,
Jharkhand
Uttarakhand Dehradun Harish Rawat 79.63% Aziz 189 per Uttar Pradesh,
Qureshi km. sq Himachal
Pradesh
West Kolkata Mamata Banerjee 77.08% Keshari 1000 per Odisha,
Bengal Nath km. sq Jharkhand,
Tripathi Bihar, Sikkim
Noble Prize Winners 2014

List of Noble Prize winners.
Noble Prize Winner Field

Isamu Akasaki, Hiroshi Amano, Shuji Nakamura Physics (Invention of efficient blue LED)
Eric Betzig, Stefan W. Hell, William E. Moerner Chemistry (For inventing super-resolved
fluorescence microscopy)
John OKeefe, May-Britt Moser, Edvard I. Moser Medicine (discovery of cells that constitute a
positioning system in the brain)
Patrick Modiano In Literature for "The Art of Memory"
Kailash Satyarthi, Malala Yousafzai In Peace for their fight against terrorists for children
rights
Functions of banks
Primary Functions
Accepting deposits
Most important function of a bank is to mobilize public funds. Bank provides safe custody as well as interest
to the depositors.
Saving deposit
Saving deposit account meant for those people who wants to save for future needs and uncertainties. There
is no restriction on number and amount of withdrawals. Bank provides cheque book, ATM cum debit card
and Internet banking facility. Depositors need to maintain minimum balance which varies across different
banks.
Fixed deposit or Term deposit

In fixed deposit account, money is deposited for a fixed tenure. Banks issues a deposit certificate which
contains name, address, deposit amount, withdrawal date, depositor signatures and other important
information.
Depositor can't withdraw money during this period. In case depositor want to withdraw before maturity,
banks levy pre-mature withdrawal penalty.
Current account
Current accounts are normally opened by businesses. Banks provide overdraft facility for these accounts by
which account holder can withdraw more money than available bank balance. This act as a short term loan
to meet urgent needs. Bank charges high rate on interest and charges for overdraft facility because bank need
to maintain a reserve for unknown demands for overdraft.
Recurring deposit
In this type of account depositors deposits certain sum of money at regular period of time. Benefit of
recurring account is that it provides benefit of compounded rate of interest and enables depositors to collect
big sum of money.
Granting Loans and advances
Cash credit
It is a short term loan facility under which banks allows its customers to take loan up to a certain limit,
normally bank grants this loan against mortgage of certain property.
Bank overdraft
Bank provides this facility to current account holders.Account holder can withdraw money anytime up to the
provided limit. He need to pay interest only on borrowed amount for the period for which he took loan.
Loans
Banks providing loans for various kinds of short term as well as long term needs. Borrower pay back the
loan in installments.
Discounting bills
In normal day to day business, sellers sends bills to buyer whenever they sell their products and it is
mentioned in bill to make payment in stipulated time. Lets take it 30 days. In such conditions seller may
discount the bill from bank for some fees. In such situation bill discounting acts as short term loan. In case
the buyer or the drawer defaults, bank send the bill back to seller to drawer so that he may take legal action
against drawee or buyer.
Secondary functions
Agency functions
Funds transfer
Cheques collection
Periodic payments/collection
Portfolio management
Utility functions
Issue of draft, letter of credit etc :-Letter of credit acts as an assurance that in case the borrower
defaults in making the payment, bank will make the payment up to the amount mentioned in letter of
credit
Locker facility
Underwriting of shares
Dealing in foreign exchanges
Project reports
Social welfare programs
What is an NRE account?

NRE Account stands for Non-Resident (External) Account.
The NRE account can be opened by Non-Resident Indians (NRIs). The account can be operated individually
or jointly. Persons of Indian Origin are also eligible for the account. In case of NRE accounts, nomination
can be made for NRI or PIO resident only.
The NRE account gives an opportunity to non-resident Indians to deposit money in Indian Banks.
There could be multiple type of accounts under NRE. These include: Saving Fund, Current Account,
Recurring Deposit, or Term Deposit. The funds under NRE are maintained in Indian Rupees as the currency.
The fund amount including the principal as well as the interest can be repatriated. This facility may not be
there in other accounts for NRIs. The repatriation could be in foreign currencies.
The deposits under the NRE accounts are not taxable under Wealth Tax. Also, the interest income is exempt
from the income-tax.
While the NRE accounts are accessible only to NRI and PIO there might be some special cases. NRIs who
return to India for permanent settlement may hold the account till maturity of their deposits.
Central Government Welfare Schemes

Aam Aadmi Bima Yojna
Started - 02-10-2007
Objective - To provide life and accident insurance to people without land living in rural areas
Working - Both State government and National government contributes Rs 200 each towards insurance one
family member of age 18-59.
Money paid to insurance beneficiary
In case of natural death - Rs 30,000

In case death due to accident or permanent disability - Rs 75,000
In case of permanent disability due to any accident - Rs 37,500
Doodh Ganga
Goal - Provide interest free loan and capital subsidies to diary farmers.
Indira Awaaz Yojna

Started 1985
Objective - Prociding financial assistance to rural and urban poor for construction of houses.
Working - Financial assistance of Rs 70,000 in plain areas and Rs 75,000 in difficult areas is provided.
Construction of sanitary latrine and smokeless chullah is mandatory

Hiring a contractor is banned
House is allotted in the name of woman or jointly in the name of both man and woman.
Prefernce is given to
Mentally challenge
Physical challenged
Woman headed houses
Transgenders
Widows and children of members of defence or police forces who died on duty
Janani Suraksha Yojana

Started - 12 April 2005
Objective - JSY aims at reducing maternal deaths by promoting deliveries in public and private health
institutions
Working - Mother should be at least 19 year old and belong to BPL or SC/ST category.
Government provides
Rs 500 in case of home delivery
Rs 600 in case of mother from municipal/corporation area delivering baby in private or public health
care center
Rs 700 in case of mother from rural area delivering baby in private or public health care center
Ladli Scheme
Started - 20 August 2008
Aim- Objective of this scheme was to raise the status of girl child and change the social mindset of people
towards girls in Haryana. (Separate scheme for Delhi)
Working - Financial assistance of Rs 5000 per family per year is given by state government on the birth of
second girl child. This scheme is available for parents who are domiciles of Haryana.
Ladli Laxmi Yojna

Aim- Objective of this scheme was to raise the status of girl child and change the social mindset of people
towards girls in Madhya Pradesh.
Working - Government purchases National saving certificate worth Rs 6000 per year for four years for
every girl child born after 01-04-2008 and whose parents are domicile of Madhya Pradesh.
Additional money paid on following events :-

At the time of admission in 4th standard - Rs 2000
At the time of admission in 9th standard - Rs 4000
At the time of admission 11th standard - Rs 7500
During higher secondary education - Rs 200 each month
On the completion of 21 years she could receive even Rs 1 lac
Mahatma Gandhi National Rural Employment Guarantee Act

Started - 25 August 2005
Objective - To provide 100 days employment guarantee per year to unskilled labourers
Working - Government provides 100 days employment guarantee per year to unskilled labourer to do
public works for which he is paid Rs 120 per day. In case Government is unable to provide employment to
labourers then it need pay labourers for 100 days at their home.
Budget aloocated for MNREGA - Rs 45000 crores ( 2012-2013)
Midday Meal Scheme

Started - Started on different dates in various states in India. It was first introduced in Uttar Pradesh
Objectives - Providing free lunch on working days to primary and upper primary students of government
schools in India. This scheme aims at promoting education and removal malnutrition in children.
National Pension Scheme India

Started - 1 January 2004
Objectives - Provides social security to Government employees on retirement
Working - 10% of basic salary is deducted from basic salary and DA and contributed to pension fund.
Central government makes equal contribution to the fund.
Pradhan Mantri Gram Sadak Yojana

Started - 5 December 2000
Objective - To provide roads in villages with population of 1000+
Rashtriya Krishi Vikas Yojana

Started - August 2007
Objective - This scheme aims at achieving 4% annual growth in agriculture sector.
Working - Rs 5875 crores will be in agricultural sector in 11th five year plan to improve agricultural
productivity.
Rashtriya Swasthya Bima Yojana

Started - April 1, 2008
Objective - Providing health insurance to poor people living below poverty line and holding yellow card
Working - Anybody holding yellow card need to register for this scheme and get a smart card. Family get
insurance of Rs 30,000 per family. This is cashless facility to get treatment in public as well as private
hospitals.
Sampoorna Grameen Rozgar Yojana

Started - 25 September 2001
Aim - Started by cobining two ongoing schemes namely Jawahar Gram Smridhi Yojana and employment
Assurance Scheme. This scheme was started to provide supplementary employment so that labourers in rural
areas can earn extra and thus providing food security to them.
Working - Budget of Rs 10,000 crores has been alloted which is to be provided in ratio of ratio of 75:25 by
Center and State and government.
Sarva Shiksha Abhiyan

Started 2001
Aim - Provide useful and free education to children in the age group of 6 -14 years under RTE act 2009
Funds allocated - Rs 61,734 crores allocated in 2011-12
Swabhiman
Started - 10 February 2011
Aim - To provide banking facilitates in rural areas with banking services. Goal of this scheme is to start
banking services in 20,000 villages without banking services with a population of 2000 by March 2012
Swarnajayanti Gram Swarozgar Yojana

Started - 1 April 1999
Objective - SGSY provide assistance to rural people living below poverty line to take up self employment.
Swavalamban
Started - 2010 (Will be closed on 2017-2017)
Goal - To encourage workers working in unorganized sector to save for their retirement
Working - Workers must invest contribute minimum Rs.1000 to maximum Rs.12000 per year into their
NPS account. Government will contribute Rs 1000 per year to NPS account per year.
Current RBI Policy & Reserve Rates:-

Repo Rate 8% (Unchanged)
Reverse Repo 7% (Unchanged)
CRR 4% (Unchanged)
SLR 23% (Unchanged)
MSF 9% (Unchanged)
Bank Rate 9% (Unchanged)
Repo Rate
Repo rate or repurchase rate is the rate at which banks borrow money from the central bank (RBI for India)
for a short period by selling their securities (financial assets) to the central bank with an agreement to
repurchase it at a future date at predetermined price. It is similar to borrowing money from a money-lender
by selling him something, and later buying it back at a pre-fixed price.
Bank Rate
People often get confused between Bank Rate and Repo Rate. Though they appear similar there is a
fundamental difference between them.
Unlike Repo Rate, there is no sale of security in Bank Rate. Bank rate is the rate at which banks borrow
money from the central bank without any sale of securities. It is generally for a longer period of time. This is
similar to borrowing money from someone and paying interest on that amount.
Both these rates are determined by the central bank of the country based on the demand and supply of
money in the economy.
Reverse Repo Rate

Reverse Repo rate is the rate of interest at which the central bank (RBI) borrows funds from other banks for
a short duration. The banks deposit their short term excess funds with the central bank and earn interest on
it.
Reverse Repo Rate is used by the central bank to absorb liquidity from the economy. When it feels that there
is too much money floating in the market, it increases the reverse repo rate, which means that banks earn
higher rate of interest when they deposit money with the central bank.
Reverse Report rate was an independent rate till 03/05/2011. However, in the monetary policy announced
on 03/05/2011, RBI decided to link it to Repo rate. So, Reverse Repo Rate is now always 100 bps below the
Repo rate (till RBI decides to delink the same).
CRR (Cash Reserve Ratio)

Have you ever wondered what happens to the amount that you deposit in bank? It is used by banks to earn
money by investing or lending it to others (house loans, personal loans etc.). But as per the regulations,
banks cannot use the entire amount deposited with them for this purpose. They are required to maintain a
percentage of their deposits as cash. So, if you deposit Rs. 100/- in your bank, then bank cant use the entire
Rs. 100/- for lending or investment purpose. They have to maintain a portion of the deposit as cash and can
use only the remaining amount for lending/investment. This minimum percentage, which is determined by
the central bank, is known as Cash Reserve Ratio.
So if CRR is 6% then it means for every Rs. 100/- deposited in the bank, it has to maintain a minimum of
Rs. 6/- as cash. However, banks do not keep this cash with them, but are required to deposit it with the
central bank, so that it can help them with cash at the time of need.
SLR (Statutory Liquidity Ratio)

Apart from keeping a portion of deposits with the RBI as cash, banks are also required to maintain a
minimum percentage of deposits with them at the end of every business day, in the form of gold, cash,
government bonds or other approved securities. This minimum percentage is called Statutory Liquidity
Ratio.
Example
If you deposit Rs. 100/- in a bank, and assuming CRR to be 6% and SLR to be 8%, the bank can use 100-6-
8= Rs. 86/- for giving loan or for investment purpose.
India ranking in different Indexes :

1. Global Hunger Index (GHI) - Indias score is 23.7, with a rank of 66th out of 88 countries.
2. Global Peace Index Indias ranked 141th.
3. Human Development Report UNDP - India at 134 out of 182 countries.
4. GREENDEX , a world wide ranking based on consumer choice and environment - India Ranked
1st with a Score of 59.5 among 17 countries.
5. Global Corruption Index - India at 94th .
6. WEF The Global Gender Gap Report - India ranked 114 lisetd very poorly on the economic,
education and health sub- indexes.
7. WEF Global Information Technology Report - India at 54th.
8. The business executives in the Political and Economic Risk Consultancy (PERC) survey rated
India as having the regions most inefficient bureaucracy. India scored 9.41 Singapore scored
2.53.
9. Global Competitiveness Index - India at 59th .
10. India ranked at 105 in the Education for All Development Index.
List of PSU Banks and Their Heads

State Bank of India and Its Associates
Bank name Name of the Head
State Bank of India
State Bank of Bikaner & Jaipur
State Bank of Hyderabad Smt. Arundhati Bhattacharya
State Bank of Mysore
State Bank of Travancore
State Bank of Patiala
Other PSU banks
Bank name Name of the Head
Allahabad Bank Rakesh Sethi
Andhra Bank C. V. R. Rajendran
Bank of Baroda S. S. Mundra
Bank of India V. R. Iyer
Bank of Maharashtra Sushil Muhnot
Bharatiya Mahila Bank Usha Anantha Subramaniyan
Canara Bank R. K. Dubey
Central Bank of India Rajeev Rishi
Corporation Bank Sadhu Ram Bansal
Dena Bank Ashwini Kumar
IDBI Bank Ltd M. S. Raghavan
Indian Bank T. M. Bhasin
Indian Overseas Bank M. Narendra
Oriental Bank of Commerce S. L. Bansal
Punjab & Sindh Bank Jatinder Bir Singh
Punjab National Bank K. R. Kamath
Syndicate Bank Sudhir Kumar Jain
UCO Bank Arun Kaul
Union Bank of India Arun Tiwari
United Bank of India Vacant
Vijaya Bank V. Kannan
Basic Financial Terms A-Z

A
AGM - Annual General Meeting, it is the year meeting held by every registered company. Agenda is to
explain the performance during the year, presentation of annual financial statements, voting on important
financial decisions. Any shareholder can participate in AGM.
Asset turnover ratio - This ratio can be explained as Net assets / Total turnover or sales. This ratio
measures the operational efficiency of business assets. In simple terms this measures how many time total
assets turned in a year and how efficiently the assets are used in a business.
Acid test ratio - This is one of the important ratio to measure business liquidity. Business liquidity is
defined as ability of a business to pay it;s short term debts. Acid test ratio = Highly liquid assets / current
liabilities
American Depository Receipts - This is the way non-US companies raises money from US investors.
These shares can be traded in US stock exchanges and denominated in US $.
Amortization - It is an accounting technique by which intangible assets are written off over a period of
time. For example provision for doubtful debts or preliminary expenses are written off over a certain period
of time.
Annuity - It is an investment scheme under which investor makes recurring investments and lump sum
payment is made to him at the end. Common example is Recurring deposit account at a post office where
people makes small monthly deposits and gets their money back at the end of period. Benefit of Annuity is
investor gets compound interest over a period of time.
Asset Management Company - AMC is a company that pools and invests investor money in pre-
determined goals. Pool of funds is known as Mutual fund.
Audit - Financial statement and physical stock is checked annually by professional auditor ( Chartered
Accountant affiliated by ICAI in India )
Book-keeping - Recording of financial transactions in books of account.
Bear market - A market situation in which most of the investors thinks that markets will fall.
Balance of Payment - BOP is the difference between a country's exports and imports.
Capital - Wealth invested by an entrepreneur on his business. Capital = Assets - Liabilities
Capital gain - Gain by selling a capital asset in which a person is not doing business. Income by selling a
house by a bank employee is a capital gain whereas when a builder do the same thing it is Income from
business and professional.
Current asset - An asset that can be converted into cash with 12 months. For example - debtors, stock etc.
Credit rating - A ranking applied to an individual, business or a nation based upon its credit history and
current financial position. There are various credit rating companies in India such as Crisil.
CPI - Consumer price index is measure to find price of a bundle of commodities. CPI is used to measure the
inflation in a country.
Debt consolidation - Debt consolidation is a process by which various loans and converted into a single
loan to reduce interest rate and instalment value.
Depreciation - Depreciation is reduction in value of an asset due wear and tear over a period of time. For
example a company purchased a machine in 2005 and planned to charge 20% depreciation. In 2010 the
machine will be written off from the books of account.
Dividend - Dividend is the amount per share paid by a company to its shareholders. Dividend value is based
upon company's profitability.
Dividend payout ratio - It is the ratio of dividend paid per share and EPS ( Earning per share )
Double entry bookkeeping - It is a method of bookkeeping in which every transaction is recorded two
accounts. Once in debit side and once in credit side.
Earning per share - Earnings made by a company in a financial year divided by number of issued shares.
Equity - Value of a business. Equity = Total assets - Total liabilities
Ex-divided - Ex-dividend means without dividend. When a seller makes a ex-dividend sales contract then
he is entitled to get dividend or interest payment.
EBIT - Earning before interest and taxes
EBT - Earning before tax
EAT - Earning after tax
Face value - The amount mentioned on face of a bond certificate.
Fixed assets - Assets which can be seen such as machinery
Financial year - A period of 12 months from 1st April to 31st march
Fundamental analysis - Analysis of a company based upon financial and operational performance.
Fiscal policy - Income and expenses management by Government.
Flat rate - Rate of interest in a contract which remains same irrespective of market rate in future.
Floating rate - Rate of interest which changes with change in market rate.
Fund manager - A person who manages a mutual fund and tries to maximize fund's returns while sticking
to fund's objectives.
Gearing - It is the ratio of debt to equity
Goodwill - Intangible assets that defines firm's reputation in monetary terms.
Gross profit = Net sales - Net purchases - Direct expenses
GDP - Gross domestic product is the aggregate value of goods and services produced by every person of a
nation.
GST - Goods and services tax is the same tax system for everything. It is proposed that GST will replace the
multi tax system in India by 2015.
Hedging - Hedging is a technique used by investors to protect themselves from adverse price movements.
Derivatives are used for hedging in which hedgers takes the risk of price fluctuations.
Hedge funds - Mutual funds which invests in derivatives
Index - It is statistical measure used to find price variations in market. In stock markets most dominating
stocks are grouped to make an index. For example - Sensex.
Income statement
A statement that represents both income and expenditure of a business during a specific period of time.
IPO - Initial public offer is issue of stocks for the first time in the market.
Intangible assets Assets which cant be seen but have value for business. For example Goodwill.
Indemnity A legal contract under which one party promises to pay another for any loses incurred to them
by their acts.
Interest rate risk Risk that value of financial assets will deteriorate because of fall in interest rate. For
example value of bonds decreases with decrease in interest rate.
Irredeemable stocks Stocks which cant be exchanged for cash in future.
Indirect Costs - Indirect cost is a cost incurred on product that is not directly related to its production.
Junk fund A fund which invests investors money in junk investments means high risk investments which
high returns.
KYC Know Your Customer policy is mandatory in India and every investor irrespective of his investment
volume needs to furnish his identity and residence details.
Libor London
Liquidity Ability of a business to pay off its short term debts with current assets. Currently NISL is facing
liquidity crunch.
Liquid assets Assets which can be readily converted into cash
Liquid ratio Liquid assets/Current liabilities
Limited liability Liability of an individual or a business up to the value of investment made in a business
Monopoly - A situation in market where there are many buyers but a single seller exist.
Money market - Market dealing in short term lending and borrowing of funds. Also know as Cash market.
Monetary policy - Set of actions by Central bank of a country ( RBI in case of India) to control the supply
of money. These actions included increase in interest rate, open market purchases, changing commercial
bank's reserve funds ratio (SLR) etc.
Marginal cost - Additional cost to produce an extra unit of product.
Margin - Amount of profit added to cost price of each unit of a product
Margin call - Margin call term is used in two situations. First - Whenever a lender gives a secured loan and
loan value is a fixed percentage of loan then whenever the value of security decrease below the decided ratio
then lender given a margin call to borrower to bring loan to security ratio to decided level. Secondly in stock
exchanges traders trades in various securities by paying 20-30% of the value of securities. Whenever the
value of security goes below that margin, broker gives margin call to trader to bring the margin to desired
level.
Mark-to-market - As explained above while defining margin call, value of assets in case of securities is
measured on daily basis. If the trader's asset value increased, increased value is transferred to his account. In
case the value of assets decreased margin call is made to adjust the margin.
NPV - Net Present Value is aggregate of future cash flows from a project minus total costs. NPV is a capital
budgeting technique used to check feasibility of projects.
Net profit - Net profit is Gross profit minus indirect cost. See indirect costs
Net worth - Net assets - Total liabilities
Nationalization - When Government takes control of a business, this is known as nationalization.
NAV - Net Assets Value is mutual fund's per unit exchange traded price
Opportunity cost - Additional cost in production of an addition unit of product.

Options - Option is right to buy at pre-determined price at a future date. Option is used for hedging. Options
safeguards option-holder from future price fluctuations.
Overdraft - Facility given by a bank which allows its customers to withdraw more money than account
balance. Overdraft generally have high rate of interest as borrower can demand and return the loan anytime.
Preference shares - A type of shares having no voting rights and have higher rate of dividend.
Ponzi schemes - It is a kind of fraud scheme which use Network marketing as a tool. Investors are paid out
of new investments. These schemes end when new investments stop coming and large number of investors
wants to withdraw their money. Latest Ponzi scheme in India was "Speak Asia".
PLR - Prime lending rate is the minimum rate of interest that is to be charged by a bank. Each bank decides
its own PLR.
R
ROI - Rate on investment is return divided by value of investment
Redemption - Maturity date of a security or a bond
Recession - An economic situation of negative growth
Repo rate - Rate at which Central bank (RBI in case of India) lends money to commercial banks
Reverse repo rate - Rate at which commercial banks lends to central bank
Right issue - Issue of shares in which existing shareholders gets right to buy shares in proportion of their
existing holding
Risk free return - Rate of return, normally it is 90 days bills issued by a national government
S
Stagnation - An economic situation of slow economic growth, high rate unemployment and inflation.
Shorting - Selling securities which an investors don't have in expectation of price drop
U
Underwriters - In case of an IPO, new companies makes contracts with underwriter where underwriters
promises to purchase unsubscribe shares.
W
Working capital - Money required by a business to run its day to day business. Working capital = Current
assets / Current liabilities
Warrants - A document which gives right to holder to get shares at stated price
Y
Yield - Yield is the return on investment which may in form dividend or interest
List of Basic Accounting Terms

A
Accounting - process of recording, analysis and reporting monetary transactions
Accounting Concepts - Basic principles upon which accounting is based
Accounts payable - Amount payable by business entity to various parties from whom good or services have
been purchased.
Account receivable - Amount due to business entity to whom goods or services have been sol
Accrual basis - An accounting system which explains that expenses and incomes should be recognized at
the time when they are actually realized.
Amortization - It is the splitting off a loan or intangible assets over a future period
Annual report - Report issued by a company at the end of year containing all important financial statements
and preview of management's goals.
Authorized share capital - Maximum share capital a company is authorized to issue
Bad debts - Noncollectable receivables
Balance sheet - Statement that summarizes assets and liabilities of a business entity
Bankruptcy - A state in which an individual or legal entity is unable to pay off his debts so he surrenders
his assets to the court.
Bill of exchange - A promise to certain amount of money to holder at a specified date
Bill of lading : A document which represents ownership of goods in transit i.e. goods during shipping from
one place to another.
Bills Payable : A bill which shows that a firm has to pay money to the person or firm whose name is
mentioned in the bill.
Bills receivable : A bill which shows that money is to be paid to firm from those whose names are
mentioned in the bill.
Bonus shares : Shares which are issued to the existing shareholder
Bookkeeping : This process includes analyzing, classifying and recording from various sets of books in a
very systematic way.
Book value : Historical cost less accumulated depreciation. Generally, it is accounting value.
Brought down : Written as b/d. It represents the opening balance of an account.
Brought forward : Written as b/f. This term is generally used to open an account for the current year by
posting the closing balance of previous year.
Capital expenditure : Cost incurred to acquire fixed assets which spreads benefits in future.
Capital work-in-progress : Cost incurred in those assets which are not ready yet for use.
Carried down : Written as c/d. This term a synonym for the term carried forward and used to balance an
account.
Carried forward : Written as c/f. Term used to transfer the balance from one period to the another.
Carriage inwards : These are the expenses incurred for transporting the goods purchased by the firm.
Carriage outwards : Expenses incurred for transporting goods sold by the firm.
Cash : It broadly covers currency and generally accepted equivalents of cash, like cheques, drafts and
demand deposits in bank.
Cash at bank : Deposit with bank.
Cash Book : A book of all transactions or entries for cash payments and receipts.
Cash on hand : Cash available and undeposited.
Closing stock/ Closing inventory : Goods remaining at the end of an accounting period.
Conservatism principle : Accounting concept that states that all expected losses should be recorded but not
expected gains.
Depreciation : Decrease in value of assets or the cost of an asset is allocated to that period during which
asset is used.
Discount : A deduction from cost of something, offered by seller.
Dividend: A share of profit which is to be distributed to the shareholders.
Dividend Yield: Ratio of current dividend to the current market price of a share.
Double-entry: Transaction entered in both sides debit as well as credit i.e. every transaction has to entered
twice.
Doubtful debts : A collection of that debt which is doubtful.
Drawings : Withdrawing cash or goods from business for personal use.
Dual Aspect Principle : Also known as Duality Principle. This fundamental principle of accounting
states that every transaction has a dual effect and should be recorded at two places.
Du-Pont System : The System merges the income statement and balance sheet into two measures of
profitability: Return on Assets (ROA) and Return on Equity (ROE).
EBIT : Earnings before interest and tax.
Entity Principle : The business firm is treated as a separate entity for the purpose of accounting.
Equity : A stock or any other security representing an ownership interest.
Exchange Rate : The rate at which one currency can be converted into another.
Expenses : the cost i.e. material or services used in an operation during a specified period.
F
Face Value : Commonly referred to the amount paid to a bondholder at the maturity date, given that the
issuer doesn't default.
Financial Asset : An intangible asset that derives value. Stocks, bonds, bank deposits etc are all examples of
financial asset.
Financial Ratio : Ratio based on firm's financial statement which reflects firm's financial condition and
performance.
Financial Statement : A formal record of the financial activities of a business, person or other entity.
Financial data is presented in a structured manner.
Fixed Assets : It includes premises, plant and machinery, furniture, land and buildings etc.
Fixed Charge : A required payment under a contract.
Freehold Premises : Premises which are not subject to any charge.
Funds Flow Statement : A statement which shows inflow and outflow of funds.
Gross Profit Margin : Ratio of Gross profit to net sales i.e. gross profit as a percentage of net sales.
Holding Company : A parent company which holds enough stock in another company to hold its board of
directors.
Human Resource Accounting (HRA) : Measuring the cost and value of employees and managers in the
organisation. It includes the measurement of the cost incurred to recruit, hire, train and develop employees
and managers.
HRA Report : After measuring the cost and value of its people, the organisation prepares a report which is
known as HRA Report.
Imprest : Maintained cash to meet the sundry expenses.
Income Due but not received : Receivable income but not yet received.
Income Received but not due : Income received during current accounting period which is supposed to be
received at some future date.
Income statement : Profit and loss statement that measures the firm's operations.
Insolvency : Inability of debtors to meet their debt obligations i.e. lack of liquidity.
Intangible assets : Assets like patents, copyrights, goodwill etc which are valuable but are not physical in
nature.
Interest earned ratio : Ratio which measures firm's ability to meet its interest payments out of its annual
earnings i.e. EBIT / Interest expense.
Interest rate risk : Uncertainty in expected returns of securities due to changes in interest rates.
Inventory : Stock of goods or articles.
Journal : A daily record of transactions in which each transaction is based on double entry bookkeeping i.e.
for all transactions both debits and credits are to be entered.
Ledger : A record of all individual accounts of a business or firm.
Liability : A financial obligation which arises due to some past events or transactions in business.
Marketable securities : Securities which can easily be converted into cash.
Market value : Mutually accepted price of an asset between buyers and sellers. It is price at which an asset
would trade in market.
Matching Principle : States that expenses should be recorded during that period when it is incurred,
regardless the period of transfer of cash.
Miscellaneous expenditure : Lower monetary value costs are misc expenditure like various meals, ticket
prices etc.
Mortgage : A temporary pledge of property to the creditor as a security for an obligation or the debt
repayment.
Net block : Net block is what asset are worth to the company. Generally, it is gross block less accumulated
depreciation.
Net current assets : Current assets less current liabilities.
Net income : Total earnings of company. It represents firm's total profit or loss, calculated by taking all
revenues and deducting all the costs of the business.
Net profit margin : Net profit or income as a percent of sales i.e. net Income/ Sales.
Operating profit margin : Operating income / Revenue.
Outstanding expenses : Unpaid expenses.
Overdraft : When money is withdrawn from bank account and account balance is below zero.
Paid up capital : The amount of company's capital which has been funded by shareholders.
Patent : The sole right to make and sell the product for set period of time.
Petty cash book : Record of entries for small amount payments.
Prepaid expenses : Expenses which have been paid but benefits of which is yet to be received.
Profit and loss account : A statement which shows all revenues and expenses of firm for a given time
period. Subtracting expenses from revenues gives net income of the firm for that time period, that's why
known as profit and loss account.
Proposed dividend : Company's board of directors declare an amount of dividend every year and this
amount is noted as a liability in balance sheet. The rate of proposed dividend can be changed by
shareholders in annual general meeting.
Provision for doubtful debts : Keeping aside an amount out of the firm's profit to meet the losses due to
doubtful debts.
Provision for tax : Keeping aside an amount to meet future tax liability.
Realization principle : It states that recognize the revenue only when it is earned.
Redeemable Preference Shares : Preference shares which are redeemed by issuing company at an agreed
price on a specified date.
Reserves and surplus : Accumulated profits of the firm.
Retained earnings : A portion of net income of company which is not distributed in shareholders and
reinvested in core business.
Return on equity : Equity earnings / Net worth.
Sales book : A complete record of sales which are made on credit.

Sales Returns Book : A record of entries of those goods which are returned by customers and earlier sold
on credit.
Secured loans : Loan backed by an asset belongs to the borrower, just to reduce the risk for the lender.
Sinking fund : Fund created by keeping aside some money annually for gradual repayment of debt.
Sundry expenses : Miscellaneous expenses.
Total asset turnover ratio : Net sales/ Total assets.

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www.BankExamsToday.

1. Why do you want to enter banking?

2. What is the difference between Cheque and Demand Draft?

3.What are NBFCs and difference between NBFCs and Bank?

4. What is Private Banking?

5. What is the Use of Computers in a Bank?

6. What is recession? What is the cause for the present recession?

7 What is Sub-prime crisis?

8 What is a Repo Rate?

9. What is Reverse Repo Rate?

10. What is CRR Rate?

11. What is SLR Rate?

12. What is Bank Rate?

13. What is Inflation?

14. What is Deflation?

15. What is PLR?

16. What is Deposit Rate?

17. What is FII?

19. What is IPO?

20. What is Disinvestment?

21. What is Fiscal Deficit?

22. What is Revenue deficit?

23. What is GDP?

24. What is GNP?

25. What is National Income?

26 . What is Per Capita Income?

28. Functions of RBI?

29. What is monetary policy?

30. What is Fiscal Policy?

31 What is bank and its features and types?

32. What is Right to information Act?

33. What is Cheque?

34. What is demand Draft?

35. What is a NBFC?

36. What is NABARD?

37. What is SIDBI?

38. What is SENSEX and NIFTY?

39. What is SEBI?

40. What are Mutual funds?

41. What are Non Performing Assets?

42. What is Recession?

43. What is Foreign Exchange Reserves?

45. What is CRM?

46. What is Dematerialisation ?

47. What is Derivative ?

48. What is Bancassurance ?

49. What is LAF ?

50. What is Money Laundering ?

Common Interview Questions in Banks

2. What do you know about the Bank?

3. Why do you want this job?

4. Why should we hire you?

5. What are your strengths?

6. What do you consider to be your weaknesses?

7. What is your greatest professional achievement?

9. Where do you see yourself in five years?

10. What's your dream job?

11. What other exams you have appeared for?

12. Why are you leaving your current job?

13. Why were you unemployed?

14. What are you looking for a position in a Bank?

15. What type of work environment do you prefer?

16. What's your management style?

17. What's a time you exercised leadership?