IBPS PO V Interview Capsule 2015 by AffairsCloud PDF

IBPS PO V
Interview Capsule
Hello Dear AC Aspirants,
The IBPS PO Interviews are set to start from January. This interview is
meant to observe the attitude, confidence level and communication skills of the
candidate. The strategy that the candidate follows to answer the questions lets
the panel members decide the suitability of the candidate for the bank.
Here we are presenting to you all Interview Capsule for IBPS PO Interview.
This capsule includes all what you need to face an Interview. Go through this
capsule thoroughly as it will be really helpful for interview. We covered
everything from personal questions to each and every banking concept.
The future belongs to those who believe in the beauty of their dreams.
Always insist on yourself never imitate.
All the best for IBPS PO V Interview
with regards from AC team
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Interview Capsule IBPS PO V

Table of Contents
How to face Bank Interview .................................................................................................................... 3
Banking Notes .............................................................................................................................................. 7
Current Banking & Finance News(March-Nov 2015)..................................................................................... 30
Questions Asked in Previous Interviews ......................................................................................................... 38
Interview Experiences ...................................................................................................................................... 41
3 Rules For Overcoming Interview Jitters

1. Strike A Power Pose For Two Minutes
Rather than hunching up and making yourself small in the waiting room chair as you
scramble to soak up last minute notes or practice one final interview question, what you
should actually find a private place to do what we call a power pose.
2. Repeat A Positive Affirmation
Repeating a positive affirmation can reduce production of cortisol and stress hormones by
almost 50%, slow the mind, lower your blood pressure and heart rate and make you feel
confident and powerful.
3. Read Over Nice Things People Have Said About You
Thinking back to a time when you were successful and confident is a great way to recreate
that confidence right before an interview. A quick and easy way to do this is to print out and
compile anything nice that someone has said about you.
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How to face Bank Interview

In a Bank PO interview, the aim of the interviewers is to assess your personality, your
attitude and your ability to handle the pressure. Before you go for an interview you need to
prepare yourself well. This is because in the process of an interview every aspect of yours will
be analyzed. Whatever you have to say about yourself will be evaluated minutely.
Please remember that interviewers are well known about your knowledge on the basis of
your written marks, they only want to know your behavior, attitude and approach.
So be cool and present yourself in a positive and polite manner. Be confident about what you
saying.
Things to be kept in your mind:

1. About banks Date of Establishment, HO Place, Date of Nationalisation(if
nationalized), Name of bank before nationalization (if any), Paid-up Capital and
worth of the bank, Number of branches in India and abroad etc. Basically you
have to know history, services, products, achievement, management (name of
CMD) etc of banks
2. International and national information on banking industry.
3. Brief information of Banking Regulation Act, RBI Act , Negotiable Instrument Act,
Basic Banking Knowledge: Banking, Banking Business, Debit and Credit,Types of

Banks, Banking Terms, Banking Reforms in India, Computerisation in India, Types
of Accounts, Customer, Currencies, Foreign Exchange, Types of loan accounts,
Banking Technology and its implementation, Banking Innovative Products, Third
Party Products etc.
4. Keep updated. Most of the questions that the panel members ask are from the
current affairs especially from the banking sector.

5. Do not rush while speaking. Speak in a calm and composed manner so that you
may not utter something inappropriate which you may regret later. Also
remember to speak in a polite and respectful manner.
6. Do not rush while speaking. Speak in a calm and composed manner so that you
may not utter something inappropriate which you may regret later. Also
remember to speak in a polite and respectful manner.
7. Be prepared for situation based questions related to personal life and resolving
critical issues. Brush up your communication skills

8. Dress up: For interview clean and sober dress wearing expected. Both men and
women should wear clean and wrinkle free sober suits. Women should not wear
any floral dresses. It should be simple and sober.
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Personal Questions:
Tell us something about yourself
Good morning to sir/mam and all the panel members.
My name is XYZ. I was born and brought up in ABC. I did my schooling from ___. I have
completed my graduation in ____from ____. I like to be disciplined in all walks of life. I like
speaking in a polite manner which at times make a good impression on others. I am always
ready to listen to others and easy to get along with them. I coordinated the events in my
college fest so you can also think me of as a good leader. My role model is _________ who is
______ (you can also add achievements here). My strength is I can easily adopt things in life
and my weakness is sometimes I end up a little bit of overdoing to complete my work and i
hate procrastination.
Why do you want to join Banking Sector?
Answer: I am always fascinated towards the banking industry specially the role a banker
plays as they reach to the public directly. Moreover banking is one of the most reputed and
fastest growing sector in India which gives immense career growth opportunity to an
individual, respect in society and job security. Being a banker I can fulfill my own dreams as
well as I can give the best in me to the bank by providing appropriate services to the
customers.
What is a Bank?
Attention: Dont mug up from books or sites try to answer it in your style.
e.g. Banking is one of the most essential part in ones life as it deals with cash and cash
transactions. Financial needs are equally important in life for enjoying a comfortable
economic status. So it plays a vital role for all of us.
How do you see yourself flourish in Banking Sector after 5 Years?

They are not looking to hear about your personal aspirations e.g. what you want to be and
what you will do in upcoming 5 years. They want to know if you are willing to stick around
the company and grow professionally and solve their problems or not. Tell them you see
yourself in the role of Manager in MMG Scale-II. Be sure about the responsibilities of
Manager MMG Scale-II. While answering you should express that you plan on staying at the
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Bank for a long time. Demonstrate some of you key strengths and how you plan on
enhancing those strengths through employment with that particular bank.
Answer like this
Sir, I share some of the same values which this corporation is looking in Probationary Officers
like customer orientation skills, multitasking ability and ready to accept challenges. I would
like to take these values to a superior level. Ive been preparing for this position and excited
about the opportunity to work with the bank.
Why did you leave your previous job?
Attention: Speaking anything negative about your past employers would cast back badly on
you. So, dont slander anyone.
Answer like this
I am thankful to my previous organisation, gave me an opportunity to work with them. I have
learned a lot of things how to work under pressure with confidence and how to make
relationship with co-workers professionally. Now I'm looking for better opportunity to enhance
my skills and ability along with company growth.
How will you add value to our organization?
The interviewer is hoping you might be the solution to their problems. List your main skills
and how these will be directly applicable if you get the job. Recheck the same question as,
"What are your strengths and what are our company strengths?
If there is something common, cite that as synergy. If there is nothing common, mention that
you bring new set of strengths to the table.
Do you have any achievement?
Some very respectable and admirable interviewers appreciate it if you honestly say that you
haven't achieved anything considerable yet and that you are all set to go out and prove
yourself and that the concerned company will provide you a platform for it. Most of the
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interviewers will expect you to impress them. So it is always better to have a decent answer
ready and prepared.
For example, you might have been part of a team that had organized a college fest for
example or a technical symposium for your department. For all I know, you might have just
signed up for that to get out of classes and sit in the canteen but you can make up a
believable crisis situation and a way out and narrate it to them. There are many more such
options. Just sit down and let your creativity flow.
Why should we select you?
This question is a great opportunity to sell yourself and your accomplishments. The answer
varies if you're a fresh graduate as opposed to a senior professional. Regardless you should
include
1. How you have the required skills/experience
2. Why you're a good fit: Employers like to know that you've taken the time to understand
their organisation. So take this time to co-relate things you've done in the past with the
things the company is trying to achieve.
3. You get things done: This is the most important ability an employer is looking for. The
ability to get things done, no matter the obstacles. Give some examples from the past.
Answer like this - As I am a fresher, I have theoretical knowledge but I can do hard work
for my organization and I will put all my efforts for the good progress of organization. Being
punctual and sincere, I can finish the work given to me on time and try my best to fulfill all
needs of company from me.
Do you have any questions?
If you have any genuine questions, you can ask. Otherwise, just say thank you and leave.
You can ask about the job challenges while emphasizing that you like to be motivated by well
focused daily work challenges, multi-tasking and even pressure.
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Banking Notes
What is a Bank?
Suppose you have got Rs.1,000 you dont need for or say for a year and want to earn
income from the money until then or you want to buy a house and need to borrow
Rs.100,000 and pay it back over 20 years.
It would be difficult for someone acting alone to find either a potential borrower who needs
exactly Rs.1,000 for a year or a lender who can spare Rs.100,000 for 20 years. Thats
where banks come in.
Bank is a financial institution that undertakes the banking activity i.e. it accepts
deposits and then lends the same to earn certain profit.
Now-a-days, banking sector acts as the backbone of modern business. Development of any
country mainly depends upon the banking system.
How do the Banks work?

The primary function of banks is to put their account holders' money to use by lending it
out to others who can then use it. When you deposit your money in the bank, your money
goes into a big pool of money along with everyone else's, and your account is credited with
the amount of your deposit.
How banks create money?
Here are the ways in which banks make money
1) Loans: Lending loans to borrowers from the public is a major way for commercial
banks to earn money. These could be personal loan, home loan, car loan and other
type of mortgages. Banks generally restrict the amount of withdrawals to remain
solvent, especially for forwarding loans. This ensures that the money remains within
the bank. The amount is lent to a person at a higher interest rate for a fixed period of
time. As the loan amount starts getting recovered, the bank pays a portion of the
interest value to other depositors and keeps the remaining as its earning.
2) Credit Cards: Credit cards are unsecured loans extended by a commercial bank with the
sole intention of earning heavy interest. Availing a credit card, limited or unlimited value,
gives the person access to immediate funds and the person is charged premium fees by the
bank for extending this facility.
3) Public Deposits: Money kept by the public in savings and checking accounts is the
largest source of funds for commercial banks. The amount accountholders entrust the bank
with safekeeping earns them a very basic interest amount. These deposits are pooled
together and loaned out to other individuals or invested elsewhere. The banks earn interest
money and share the basic percentage with the savings or checking account holder.
4) Service Fees: Commercial banks levy service fees on its customers and even though the
service fees are marginal, it forms a large chunk of commercial bank earning medium.
Commercial banks charge service fees for ATMs, overdrafts, operating a simple savings
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account, issuing debit cards, renewing debit cards, accessing internet banking and
mobile banking, issuing checks, maintaining bank lockers and more. These fees are
unavoidable since every commercial bank charges them.
Intermediary: Banks act as an intermediary between depositors(who lend money

to the bank) and borrowers(to whom the bank lends money). The amount banks pay
for deposits and the income they receive on their loans are both called interest.
Functions of Banks
Know your customer(KYC)

It is a process by which banks obtain information about the identity and address of the
customers. It helps to ensure that services of the banks are not misused. It is to be
completed by the banks while opening accounts and also periodically update the same.
Requirements for opening a bank account:
Proof of identity
Proof of address
Proof of identity: Six documents as Officially Valid Documents (OVDs) for the purpose of
producing proof of identity. These six documents are
Passport
Driving Licence
Voters Identity Card
PAN Card
Aadhaar Card issued by UIDAI
NREGA Card
One need to submit any one of these documents as proof of identity. If these documents
also contain ones address details, then it would be accepted as proof of address. If the
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document submitted by person for proof of identity does not contain address details, then
he/she will have to submit another officially valid document which contains address details.
*If one does not have any of the documents listed above to show my proof of
identity
He/She can still open a bank account known as Small Account by submitting recent
photograph and putting signature or thumb impression in the presence of the bank official.
*Difference between small accounts and other accounts
Small Accounts have certain limitations such as:
balance should not exceed Rs.50,000
total credits in one year should not exceed Rs.1,00,000
total withdrawal and transfers should not exceed Rs.10,000 in a month.
Foreign remittances cannot be credited to such accounts.
Small accounts remain operational for a period of twelve months and thereafter, for a
further period of twelve months, if the holder of such an account provides evidence to the
bank of having applied for any of the officially valid documents within twelve months of
the opening of such account. The bank will review such account after twenty four
months to see if it requires such relaxation.
What is e-KYC?
e-KYC refers to electronic KYC. e-KYC is possible only for those who have Aadhaar
numbers.
How does it work?
While using e-KYC service, you have to authorise the Unique Identification Authority of
India (UIDAI) to release your identity/address through biometric authentication to the
bank branches/business correspondent(BC). The UIDAI then transfers your data
comprising name, age, gender, and photograph of the individual, electronically to the
bank/BC. Information thus provided through e-KYC process is permitted to be treated as
an Officially Valid Document under PML Rules and is a valid process for KYC verification.
All about RBI

Reserve Bank of India regulates the entire banking system of the nation, has the job of
ensuring monetary stability for us, is responsible for printing our currency notes, operates
the countrys credit and currency system, and does a lot more from its position at the top
of the banking system pyramid. RBI was originally privately owned but is now owned
wholly by the Indian government. Set up on April 1, 1935 under the Reserve Bank of
India Act, RBIs central office was initially in Kolkata but moved to Mumbai in 1937.
But you probably already knew all of this. What you most likely do not know are
these 10 lesser discussed, and quite interesting facts about the RBI. Dig in to be
the next RBI knowledge expert.
1. The RBI logo was inspired from the East India Company Double Mohur.
2. Formed on April 1, 1935 as a private entity, but is a government entity now.
Nationalization of the central bank did not happen till 1949.
3. The financial year of RBI is from 1 July to 30 June.
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4. The first woman to become the deputy governor of RBI is K. J. Udeshi.
5. RBI demonetized notes in the denominations of Rs. 5,000 and Rs. 10,000 in 1938. They
were reintroduced in 1954 and again demonetized in 1978. RBI can print these notes
according to the RBI act of 1934.
6. RBI was also the central bank for two other countries. It played the role of Central Bank of
Pakistan till June 1948 and the Central Bank of Burma ( Myanmar) till April 1947.
7. The bank was established on the recommendation of the Hilton Young Commission.
8. Manmohan Singh is the only Prime Minister to have also served as the Governor of RBI.
9. The first Indian to hold the position of the Governor of RBI was Mr. C.D. Deshmukh. He
was the third governor of RBI.
10. RBI runs a Monetary Museum in the premises of the Mumbai head office.
Objectives:
Regulating the issue of currency in India

keeping the foreign exchange reserves of the country
establishing the monetary stability in the country
developing the financial structure of the country on sound lines consistent with the
national socio-economic objectives and policies.
Major functions of RBI

1. Monetary Authority of India
RBI works as the monetary authority of India and there by operates the monetary policy.
Monetary policy is used for the control of money supply in the economy with objective to
maintain economic and financial stability and ensure adequate financial resources for the
purpose of development.
2. Issuer of Currency
Reserve Bank of India has the sole right to issue Banknotes of all denominations.
*Key points:
First paper notes were issued by the private banks such as Bank of Hindustan and
the presidency banks during late 18th century.
Currently, paper currency notes in India are issued in the denomination of Rs. 5,
Rs.10, Rs.20, Rs.50, Rs.100, Rs.500 and Rs.1,000. RBI can issue any note of
any denomination but not exceeding Rs. 10,000. The notes denomination is
notified by Government and RBI acts accordingly.
RBI follows a minimum reserve system in the note issue. Initially, it used to keep
40 per cent of gold reserves in its total assets. But, since 1957, it has to maintain
only Rs. 200 crores of gold and foreign exchange reserves, of which gold reserves
should be of the value of Rs. 115 crores.
Currency chests are storehouses where banknotes and rupee coins are stocked on
behalf of the Reserve Bank.
The amount of a banknote is written on it in 17 languages out of 22 official
languages of India.
3. RBI as Banker of Banks
The other banks keep their current accounts with RBI and RBI helps them in maintaining
statutory reserves with itself.
4. Management of foreign exchange reserves
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RBI manages the Foreign Exchange Management Act, 1999 to facilitate external trade and
payment and promote orderly development and maintenance of foreign exchange market
in India.
5. RBI as a regulator and supervisor of financial system
It is the most important function of RBI. It not only regulates and supervises the Indian
Banks but also Foreign Banks, Regional Rural Banks, Local Area Banks, Cooperative Banks,
Financial Institutions including Development Financial Institutions (DFIs) and Non-Banking
Financial Companies.
6. RBI as Banker and Debt Manager to the Government
Central Government entrusts the Reserve Bank with all its money, remittance, exchange
and banking transactions in India and the management of its public debt. Moreover,
Government also deposits its cash balances with RBI.
7. Developmental & Promotional roles
By encouraging the commercial banks to expand their branches in the semi-urban and
rural areas, the Reserve Bank helps to reduce the dependence of the people in these areas
on the defective unorganised sector of indigenous bankers and money lenders and to
develop the banking habits of the people.
What is Nationalization ?
Nationalization is a process whereby a national government or State takes over the private
industry, organisation or assets into public ownership by an Act or ordinance or some other
kind of orders. This strategy has been frequently adopted by socialist governments for
transition from capitalism to socialism.
In India since independence following major nationalizations have taken place
1770 : First bank Bank of Hindustan.
1949 : RBI was nationalized (RBI was state owned at the time of Indian
independence).
1955 : Control of Imperial Bank of India was acquired by RBI
1969 : 14 Indian private banks were nationalised
1972 : 106 insurance companies were nationalised into four insurance companies
1980 : 6 more Indian private banks were nationalised
1993: New Bank of India Merged into Punjab National Bank
Story behind Nationalization in the 1960s

Banks in India except the State Bank of India (SBI), continued to be owned and operated by
private persons.
By the 1960s, the Indian banking industry had become an important tool to facilitate the
development of the Indian economy. At the same time, it had emerged as a large employer
and a debate had followed the nationalization of the banking industry. Indira Gandhi, the
then Prime Minister of India expressed the intention of the Government of India in
the annual conference of the All India Congress Meeting in a paper entitled "Stray
thoughts on Bank Nationalization."
Government of India issued an ordinance (Banking Companies Ordinance,1969) and
nationalised the 14 largest commercial banks with effect from 19 July 1969.
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Parliament passed the Banking Companies (Acquisition and Transfer of Undertaking) Bill, and
it received the presidential approval on 9 August 1969.
The Indian banking sector is classified into scheduled banks and non-scheduled banks.
All banks which are included in the Second Schedule to the Reserve Bank of India Act,
1934 are Scheduled Banks. These banks comprise Scheduled Commercial Banks and
Scheduled Co-operative Banks. Scheduled Co-operative Banks consist of Scheduled State Cooperative Banks and Scheduled Urban Cooperative Banks.
Scheduled Commercial Banks in India are categorized into five different groups:
State Bank of India and its Associates

Nationalised Banks
Private Sector Banks
Foreign Banks
Regional Rural Banks
What are Public Sector Banks?

PSBs in India are banks where a majority stake i.e. more than 50% is held by a
government. Thus at present all the nationalised banks are Public Sector banks. In addition
to these, IDBI Bank Ltd and SBI are too Public Sector Bank (though not nationalised bank)
as GoI has over 50% stake in these banks too.
What are Private Sector Banks?
Private Banks are banks that do not have any government stakes. Private Banks have gained
quite a strong foothold in the Indian banking industry over the last few years especially
because of optimum use of technology. The Private Banks are accountable for a share of 18.2
percent of the Indian banking industry.
IndusInd Bank was the first private bank in India and among the fastest growing Bank Private
Banks in the country.
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Comparison between Private and Public Sector Banks
Private sector banks introduced the concept of online banking in India. This was mostly
because the private banks were technologically well equipped.
Private sector banks were using state of the art technology and fully computerized
systems since the time they entered the Indian market whereas the Public sector
banks were not.
However despite the technological challenges the public sector banks in India are
still the preferred destinations for many as they are considered as safer options for
money deposit.
What are Foreign Banks?
A foreign bank is a bank with head office outside the country in which it is located. e.g.
Standard Chartered Bank.
What are Regional Rural Banks?
After nationalization, of banks in 1960 there were problems which made it difficult for
commercial banks even under government ownership to lend to farmers. Government set up
Narasimham Working Group in 1975. On the basis of this committees recommendations, a
Regional Rural Banks Ordinance was promulgated in September 1975, which was replaced
by the Regional Rural Banks Act 1976.
First RRB: Prathama Grameen Bank
The RRBs were owned by three entities with their respective shares as follows:
Central Government 50%
State government 15%
Sponsor bank 35%
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NABARD
NABARD is an apex development bank, established in 1982 by a Special Act of the
Parliament, with a mandate to uplift rural India by facilitating credit flow in agriculture,
cottage and village industries, handicrafts and small-scale industries. NABARD functions to
promote sustainable rural development for attaining prosperity of rural areas in India.
RBI has sold its own stake to the Government of India. Therefore, Government of India holds
99% stake in NABARD.
IDBI
It has power to deal with all matters concerning policy, planning as well as operations
in giving credit for agriculture and other economic activities in the rural areas.
A refinancing agency for those institutions that provide investment and production
credit for promoting the several developmental programs for rural development.
Improving the absorptive capacity of the credit delivery system in India, including
monitoring, formulation of rehabilitation schemes, restructuring of credit institutions,
and training of personnel.
Co-ordinates the rural credit financing activities of all sorts of institutions engaged in
developmental work at the field level.
Prepares rural credit plans, annually, for all districts in the country.
Promotes research in rural banking, and the field of agriculture and rural development.
Industrial Development Bank of India (IDBI) came into being on 1st July, 1964 as a
Development Financial Institutions under IDBI Act 1964.
*Key points:
Regarded as a Public Financial Institution in terms of Companies Act. It continued as
DFI till 2004 when it was transferred into a Bank. To transform this into Bank
Industrial Development Bank Act 2003 was passed.
A new company under the name of Industrial Development Bank of India Ltd. was
incorporated as a Govt company under the Companies Act on 27th September, 2004,
and thus now it came to be known as IDBI Ltd wef 1st October 2004 but it also
worked as a Bank in terms of the Repeal Act.
W.e.f. 2nd April, 2005, IDBI Bank Ltd. was finally amalgamated with IDBI Ltd. and
was known as IDBI Ltd. It is a Public Sector Bank as GoI has above 70% shareholding
in this Bank.
SIDBI
Small Industries Development Bank of India (SIDBI) was set up under an Act of Parliament in
1990. Though it was a wholly owned subsidiary of Industrial Development Bank of India,
presently the ownership is held by 33 Government of India owned / controlled institutions.
Functions:
To initiate steps for technological upgradation and modernisation of existing units.

To expand the channels for marketing the products of SSI sector in domestic and
international markets.
To promote employment oriented industries especially in semi-urban areas to create
more employment opportunities and thereby checking migration of people to urban
areas.
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IFCI
Government of India set up the Industrial Finance Corporation of India (IFCI) in 1948
under a special Act. This is the first financial institution set up in India with the main object
of making medium and long term credit to industrial needs. It issue bonds and
debentures in the open market, to borrow foreign currency from the World Bank and other
organisations, accept deposits from the public and also borrow from the Reserve Bank.
Functions
Grants loans and advances to industrial concerns.
Granting of loans both in rupees and foreign currencies.
Underwrites the issue of stocks, bonds, shares etc.
Grant loans only to public limited companies and co-operatives but not to private
limited companies or partnership firms.
EXIM
Export-Import Bank (Exim bank) was set up in 1982 to take over the operations of
international finance wing of the IDBI and to provide financial assistance to exporters
and importers.
The authorised capital of Exim bank is Rs. 200 crore and paid-up-capital is Rs. 100
crore wholly subscribed by the Central Government.
Functions
Provides direct financial assistance to exporters of plant, machinery and related

service in the form of medium-term credit.
Provides rediscount of export bills for a period not exceeding 90 days against shortterm usance export bills discounted by commercial banks.
Gives overseas buyers credit to foreign importers for import of Indian capital goods
and related services.
Developing and financing export oriented industries.
Collecting and compiling the market and credit information about foreign trade.
NHB
National Housing Bank(NHB), a wholly owned subsidiary of Reserve Bank of India (RBI),
was set up by an Act of Parliament in 1987.
NHB is an apex financial institution for housing. It commenced its operations in 1988.
Objective:
To promote housing finance institutions both at local and regional levels and to provide
financial and other support incidental to such institutions and for matters connected
therewith
NHB registers, regulates and supervises Housing Finance Company (HFCs), keeps
surveillance through On-site & Off-site Mechanisms and coordinates with other
Regulators.
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All About SEBI
Securities Exchange Board of India was set up in 1988 to regulate the functions of securities
market. It promotes orderly development in the stock market but initially it was not
able to exercise complete control over the stock market transactions. It was left as a
watchdog to observe the activities but was found ineffective in regulating and controlling
them. So in 1992, SEBI was granted legal status.
Reason for establishment: With the growth in the dealings of stock markets many
malpractices started in stock markets such as price rigging, and delay in delivery of
shares, violation of rules and regulations of stock exchange. Due to these malpractices the
customers started losing confidence in the stock exchange. So government of India decided
to set up an agency or regulatory body known as Securities Exchange Board of India (SEBI).
Functions:
Checks Price Rigging

Prohibits Insider trading
Prohibits fraudulent and Unfair Trade Practices
Registers and regulates the working of stock brokers, sub-brokers,share transfer
agents, trustees, merchant bankers and all those who are associated with stock
exchange in any manner.
Registers and regulates the working of mutual funds etc.
Regulates takeover of the companies
All about IMF & WORLD Bank

First of all history behind the establishment of these two institutions
World bank and IMF are called the "Bretton wood institutions". In July 1944 during the
United Nations Monetary and Financial conference in Bretton woods, New hampshire,
representatives of 45 governments agreed to set up the World bank (which came into
existence during the conference) and IMF (which came into existence in 1945).
Reasons: Great Depression in the 1930s. Countries tried to protect their domestic economy
by putting barriers on foreign trade and devaluing their currency to gain market share in
export markets. These led to decline in world trade and living standards fell sharply. By
1940s it was clear that the world needed global institutions for economic cooperation.
IMF(International Monetary Fund)
World Bank
Stability
Growth
Objective: To deal with all the

issues related to the financial
sector and macroeconomics.
Objective: To lessen poverty

and promote the long term
development of the economy.
IMF is about balancing the

international financial system in
both rich and poor countries
(Greece is a recent recipient).
World Bank is for development

projects in the developing world.
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You go to the IMF when you are

so messed up that your currency
is dropping like crazy. IMF comes
and usually fixes stuff along with
advice.
IMF is a fund. Meaning it has a

pool of money given to it by 188
member countries in the past
and lends out of that fund. It
doesn't usually borrow new
money.
You go to the World Bank when

you want to build a dam or
power plant or a road.
World Bank is a bank. Meaning it

borrows money from investors
around the world and then lends
to the poor governments.
IBRD(188)
IDA(172)
Some of their projects in
India(2015). e.g.
Nai Manzil - Education and Skills
Training for Minorities
Eastern Dedicated Freight
Corridor-3
National Cyclone Risk Mitigation
Project-II
World Bank is a much bigger institution and has two arms:

IBRD (International Bank for Reconstruction and Development): Charges a
slightly higher interest rate than it borrows and it is mainly for profitable commercial
projects [such as roads and dams].
IDA(International Development Association): This is a grant body. No interest and
usually countries are given long periods for repaying. The focus is on social projects such
as immunization and education, open only for the poorest nations.
NBFC(Non-Banking Financial Company)
It is engaged in the business of loans and advances, acquisition of
bonds/debentures/securities issued by Government or local authority or other marketable
securities, leasing, hire-purchase, insurance business, chit business but does not include
any institution whose principal business is that of agriculture activity, industrial activity,
purchase or sale of any goods or providing any services and sale or purchase of
immovable property.
Difference between Banks & NBFCs
NBFC cannot accept demand deposits
NBFCs do not form part of the payment and settlement system and cannot issue
cheques drawn on itself
deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not
available to depositors of NBFCs, unlike in case of banks.
NBFCs but exempted from the requirement of registration
Housing Finance Companies
Merchant Banking Companies
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Stock Exchanges
Companies engaged in the business of stockbroking/sub-broking
Venture Capital Fund Companies
Nidhi Companies
Insurance companies
Chit Fund Companies
*Key point: There is no Ombudsman for hearing complaints against NBFCs. In

respect of credit card operations of an NBFC, which is a subsidiary of a bank if a
complainant does not get satisfactory response from the NBFC within a maximum period of
thirty 30days from the date of lodging the complaint, the customer will have the option to
approach the Office of the concerned Banking Ombudsman for redressal of his
grievances.
Banking Ombudsman
The Banking Ombudsman is a senior official appointed by the Reserve Bank of India to
redress customer complaints against deficiency in certain banking services.
*Key points:
One can file a complaint if the reply is not received from the bank within a period of
one month after the bank rejects the complaint or if the complainant is not satisfied
with the reply given by the bank.
Compensation to be paid by the bank to the complainant is limited to the amount
arising directly out of the act or omission of the bank or Rs 10 lakhs, whichever is
lower.
Compensation not exceeding Rs 1 lakh to the complainant only in the case of
complaints relating to credit card operations for mental agony and harassment.
If one is not satisfied with the decision passed by the Banking Ombudsman, one can
approach the appellate authority vested with a Deputy Governor of the RBI.
DICGC(Deposit Insurance and Credit Guarantee Corporation)
Aim: To bring financial stability to the banking system through deposit insurance, special for
the benefit of small depositors. So it is a deposit insurance provider for small depositors.
Banks insured by the DICGC
Commercial Banks: All commercial banks including branches of foreign banks functioning in
India, local area banks and regional rural banks
Cooperative Banks: All co-operative banks other than those from the State of Meghalaya
and the Union Territories of Chandigarh, Lakshadweep and Dadra and Nagar Haveli
Primary cooperative societies are NOT insured by the DICGC.
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Key points:
Maximum deposit amount insured by the DICGC Each depositor in a bank is insured
upto a maximum of Rs.1,00,000
If you have deposits with more than one bank, deposit insurance coverage limit is
applied separately to the deposits in each bank.
Kinds of deposits insured: All deposit accounts including savings, fixed, current,
recurring, except: Deposits of the Foreign Governments Deposits of the Central and
State Governments.
Insurance cost is fetched by the bank which is insured. The DICGC charges 10 paise
per Rs. 100 as insurance premium.
Self Help Groups(SHG)

Self help groups refer to group of 15-20 people (generally women) , who pool or collect
their resources like money so as to help each other in times of need. Self help groups
give loans to its members at a general interest rate which is less than interest rate of
moneylenders.Self help groups are also able to take loans from bank when they have
pooled good amount of money. Also SHG act as building groups of village and provide
platform to discuss village issues.
Women's Self-Help Groups (WSHGs)
Formed under the state government's Nava Jatan programme to address malnourished
children. WSHGs adopt malnourished children in their area and provide them food with the
help of Anganwadi centres.
Cooperative Banks
Banks in India can be broadly classified under two heads commercial banks and cooperative banks.
While commercial banks (nationalised banks, State Bank group, private sector banks, foreign
banks and regional rural banks) account for an overwhelming share of the banking business,
co-operative banks also play an important role.
The structure of cooperative network in India can be divided into 2 broad segments
Urban Cooperative Banks
Rural Cooperatives
Urban Cooperatives are scheduled and non-scheduled.
Banking activities of Urban Cooperative Banks are monitored by RBI. Registration and
Management activities are managed by Registrar of Cooperative Societies (RCS). These RCS
operate in single-state and Central RCS (CRCS) operate in multiple state.
Rural Cooperatives are short-term and long-term structures.
Short-term cooperative banks are three tiered operating in different states.
State Cooperative Banks: Operate at the apex level in states
District Central Cooperative Banks: Operate at the district levels
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Primary Agricultural Credit Societies: Operate at the village or grass-root level.
Long-term structures
State Cooperative Agriculture and Rural Development Banks (SCARDS): Operate at
state-level.
Primary Cooperative Agriculture and Rural Development Banks (PCARDBS): Operate
at district/block level.
Core points related to Monetary & Fiscal Policy
Both are complimentary to each other in balancing growth, unemployment and inflation.
Fiscal policy is by the government relates to the revenue and expenditure policies of the
government and also it is the use of government funds to influence the economy, like the
annual budget and taxation.
Monetary policy is administered by the central bank of the nation with regard to money
supply, interest rates etc.
Following are the instruments of Monetary Policy in India.
Cash Reserve Ratio (CRR) It is the share of net demand and time liabilities (deposits)
that banks must maintain as cash balance with the Reserve Bank.
Now what are Demand and Time Liabilities?
Demand Liabilities
Current Deposits, Savings bank deposits, Margins held against letters of credit/guarantees,
Balances in overdue fixed deposits, Outstanding DDs, Unclaimed deposits, Credit balances in
the Cash Credit account and deposits held as security for advances which are payable on
demand & Money at Call and Short Notice from outside the Banking System (Liability to
others).
Time Liabilities
Fixed deposits, cash certificates, cumulative and recurring deposits, time liabilities portion of
savings bank deposits, staff security deposits, margin held against letters of credit, if not
payable on demand, & deposits held as securities for advances which are not payable on
demand and Gold deposits.
Effect of increase and decrease
Lower CRR means bank can give more money as loan--> lower interest rates--> cheap
loan--> more people take loan to start business or building house or buying car-->boost in
economy. However, can also lead to inflation, if people have more cash in their hands than
the items available for purchase in the market.
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Higher CRR: Bank can give less money as loan-->Higher interest rate-->it becomes
expensive to start a new factory, buy a new house / car/bike. This can curb inflation but may
also lead to slowdown in economy because people wait for the interest rates to go down
before taking loans.
With every cut in 25 basis points in CRR it would infuse the liquidity of Rs.16000
crore.
Statutory Liquidity Ratio (SLR): The share of net demand and time liabilities that banks
must maintain in safe and liquid assets, such as, government securities, cash and gold.
Changes in SLR often influence the availability of resources in the banking system for
lending to the private sector.
Refinance facilities: Sector-specific refinance facilities aim at achieving sector specific

objectives through provision of liquidity at a cost linked to the policy repo rate.
Liquidity Adjustment Facility (LAF): Consists of overnight and term repo/reverse repo
auctions. Reserve Bank has increased the proportion of liquidity injected in the LAF through
term-repos.
Term Repos: Reserve Bank introduced term repos of different tenors, such as, 7/14/28 days
to inject liquidity over a period that is longer than overnight.
Aim: To help develop interbank money market which in turn can set market based
benchmarks for pricing of loans and deposits and through that improve transmission of
monetary policy.
Marginal Standing Facility (MSF):
Scheduled commercial banks can borrow additional amount of overnight money from the
Reserve Bank by dipping into their SLR portfolio up to a limit (currently 2% of their NDTL) at
a penal rate of interest (currently 100 basis points above the repo rate).
This provides a safety valve against unanticipated liquidity shocks to the banking
system. MSF rate and reverse repo rate determine the corridor for the daily movement in
short term money market interest rates.
Open Market Operations (OMOs): These include both, outright purchase/sale of
government securities for injection or absorption of liquidity
Bank Rate: Rate at which the Reserve Bank is ready to buy or rediscount bills of exchange or
other commercial papers. This rate has been aligned to the MSF rate and therefore changes
automatically as and when the MSF rate changes alongside policy repo rate changes.
Prime Lending Rate
The interest rate charged by banks to their largest, most secure, and most creditworthy
customers on short-term loans. This rate is used as a guide for computing interest rates for
other borrowers. It is also called prime rate.
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Types of Accounts
Bank Accounts are classified into four different types. They are,
1) Current Account
2) Savings Account
3) Recurring Deposit Account
4) Fixed Deposit Account
1) Current account
For business persons, firms, companies, public enterprises etc and are never
used for the purpose of investment or savings.
These deposits are the most liquid deposits and there are no limits for number of
transactions or the amount of transactions in a day.
No interest paid on amount held in the account, banks charges certain service
charges, on such accounts.
Do not have any fixed maturity as these are on continuous basis accounts.
2) Savings Account
For saving purposes
Any individual either single or jointly can open a savings account. Most of the
salaried persons, pensioners and students use Savings Account.
Advantage of having Savings Account is Banks pay interest for the savings. The
saving account holder is allowed to withdraw money from the account as and when
required.
Rate of interest ranges between 4% to 6% per annum in India.
There is no restriction on the number and amount of deposits. But withdrawals
are subjected to certain restrictions. Some banks recommend to maintain a minimum
amount to keep it functioning.
3) Recurring deposit account or RD account is opened by those who want to save certain
amount of money regularly for a certain period of time and earn a higher interest rate.
A fixed amount is deposited every month for a specified period and the total amount
is repaid with interest at the end of the particular fixed period.
Period of deposit is minimum six months and maximum ten years.
Interest rates vary for different plans based on the amount one saves and the period of
time and also on banks.
No withdrawals are allowed from the RD account. However, the bank may allow to
close the account before the maturity period.
Can be opened in single or joint names. Banks are also providing the Nomination
facility to the RD account holders.
4) Fixed Deposit Account(FD)

A particular sum of money is deposited in a bank for specific period of time. In some other
countries these are known as "Term Deposits" or even called "Bond".
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Its one time deposit and one time take away (withdraw) account. The money
deposited in this account can not be withdrawn before the expiry of period.
In case of need, the depositor can ask for closing the fixed deposit prematurely by
paying a penalty(usually of 1%, but some banks either charge less or no
penalty) The penalty amount varies with banks.
A high interest rate is paid on fixed deposits. The rate of interest paid for fixed
deposit vary according to amount, period and also from bank to bank.
Miscellaneous Deposits
CASA Deposits
It refers to Current Account Saving Account Deposits.

Low interest deposits for the Banks compared to other types of the deposits. So banks
tend to increase the CASA deposits and for this they offer various services such as
salary accounts to companies and encouraging merchants to open current accounts
also use their cash-management facilities.
The Bank is High CASA ratio(CASA deposits as % of total deposits) are in a more
comfortable position than the Banks with low CASA ratios , which are more dependent
on term deposits for their funding, and are vulnerable to interest rate shocks in the
economy, plus lower spread they earn.
Term Deposits are of three kinds

1. Fixed deposits: A fixed rate of interest is paid at fixed, regular intervals.
2. Re-investment deposits: Interest is compounded quarterly and paid on maturity,
along with the principal amount of the deposit. In the Flexi Deposits amount in savings
deposit accounts beyond a fixed limit is automatically converted into term-deposits.
3. Recurring deposits: Fixed amount is deposited at regular intervals for a fixed term
and the repayment of principal and accumulated interest is made at the end of the
term. These deposits are usually targeted at persons who are salaried or receive other
regular income. A Recurring Deposit can usually be opened for any period from 6
months to 120 months.
NRO, NE(E)RA and FCNA(A) Accounts
There are several kinds of accounts available for non resident Indians , Persons of Indian
Origin and Overseas Citizens of India.
Non Resident Ordinary Accounts(NRO): Any person resident outside of India can open
this account. When a resident becomes a non resident then his domestic rupee account gets
converted into the NRO account. This helps the NRI to get his credits which accrue in India.
For example rent or interest from investments.
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Non-Resident(External)Rupee Account(NR(E)RA: Its a Rupee account and the NRI can
remit money to India from the funds abroad. This means that depositor is exposed to the
Currency rates risk.
Foreign Currency Non-Resident Account(FCNR): Foreign Currency Non-Resident Account
Bank is opened by the NRIs in 6 designated currencies as follows:
1.US Dollar (USD) 2.Great Britain Pound (GBP) 3.Euro (EUR) 4.Japanese Yen (JPY)
5.Canadian Dollar (CAD) 6.Australian Dollar (AUD).
Cheques
Order Cheque: A cheque which is payable to a particular person on his order is called an
order cheque. This is a cheque whereby the printed word Bearer on the cheque is cancelled.
The cancellation of the word Bearer automatically makes the cheque an order cheque.
Bearer Cheque: A cheque which is payable to a person whosoever bears, is called bearer
cheque. The cheque sometimes can be made payable to Cash or bearer or made payable to
a specific name.
Stale Cheque: Check presented at the paying bank after a certain period typically six
months of its payment date. A stale check is not an invalid check, but it may be deemed an
irregular bill of exchange. A bank may refuse to honor it unless its drawer reconfirms it
payment either by inserting a new payment date or by issuing a new check. Also called stale
dated check.
Multilated Cheque: If a cheque is torn into two or more pieces such cheque is Mutilated
Cheque. If it presented for payment, such a cheque the bank will not make payment against
such a cheque without getting confirmation of the drawer. In case, if a cheque is torn at the
corners and no material fact is erased or cancelled, the bank may make payment against
such a cheque.
Post Dated Cheque: If a cheque bears a date later than the date of issue, it is termed as
post dated cheque. Any check or draft that has a future date written upon it by the user. The
amount of the check will not be drawn from the account until the date written on the check.
For example, a check written on the 14th of the month but dated for the 28th will not be
cashed for another two weeks.
Open Cheque: A cheque that is not a crossed cheque. The person whose name appears on
the cheque can write the name of another person on it, and the money will be paid to them.
An open cheque is a cheque that is not crossed on the left corner and payable at the drawee
bank on presentation of the cheque.
Crossed Cheque: A crossed cheque is one which has two short parallel lines marked across
its face. A cheque which carries too parallel transverse lines across the face of the cheque
with or without the words I and co, is said to be crossed. Crossed cheques are of two types.
By simply crossing a cheque or with the words & Co, by the payer, the payee can either
deposit it in his/her account or endorse it in favour of another person on the reverse. This
practice is nowadays not accepted by the banks.
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Plastic Money Different types of plastic money available in the market today. Be it credit
cards, debit cards,charge cards, co-branded cards. More and more Indians are using them as
a convenient mode of payment.
Debit Card: Money you are spending is your own and is drawn from an account you have
with the bank/institution issuing you the debit card. No money in that account? No
spendy.
Credit Card: Money you are spending is the banks and at the end of each month the
bank/institution will issue you bill letting you know how much of their money you've
spent, how much in total you owe them and how much they require you to pay this
month. There is of course usually a limit to how much of the bank's money they will
allow you to use, if you have used all of those funds - no spendy.
Prepaid cards: A prepaid card works a bit like a gift card you top it up with money,
and you can only spend up to that amount. Often used by travellers to carry holiday
money, and by anyone without a normal bank account generally kids, teens and people
with poor credit ratings.
Smart card: It contains an electronic chip which is used to store cash. This is most useful
when you have to pay for small purchases. For example bus fares and coffee. No
identification, signature or payment authorisation is required for using this card. The exact
amount of purchase is deducted from the smart card during payment and is collected by
smart card reading machines. No change is given.
Co-branded cards are credit cards issued by card companies that have tied up with a
popular brand for the purpose of offering certain exclusive benefits to the consumer. For
example, the Citi-Times card gives you all the benefits of a Citibank credit card along with a
special discount on Times Music cassettes, free entry to Times Music events, etc.
Loans
Home Loan: Home loan as name suggest is the loan against buying property. Every
individual currently have dreams to have their own home.
Personal Loan: It is the loan granted to fulfill your expenses which ranges from buying
some expensive electronic gadgets to booking your air tickets. People used to use this facility
for anything they can. They forget that usually rate of interest on such loans will be higher
than other types of loans. But still to have something in advance end up them to borrower of
such type of loans. Here we may find two types of loans
Secured Loans-Where you provide some collateral as a safety against loans.
Unsecured Loans-In such type of loans borrower collateral not required.

Car Loan or Vehicle Loan: Used to meet your financial requirement when one is planning to
have his dream car or bike. It is usually a secured loan where collateral is your vehicle and in
case of default lender may recover it by taking back your vehicle. But some lenders offer
unsecured loans where your credit score matters more.
Education Loan: This is actually a handy tool for parents who not planned well for their kids
higher education.
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Maximum Loan Available
Studies in India-Maximum Rs.10,00,000.
Studies abroad-Maximum Rs.20,00,000.
Security
Upto Rs.4,00,000: Parents need to be joint borrowers but security is not required.
Above Rs.4,00,000 and below Rs.7,50,000: Besides parents joint borrower condition, you
need to bring collateral security in the form of suitable third party guarantee will be taken.
But if banks satisfied with financial condition of the borrower then they may waive the
condition of third party collateral.
Securities: Pledge, Hypothecation,Mortgage
Pledge is when the property is offered as collateral or security. It is a right to reserve a legal
interest in something. Example- a lot of banks and credit unions have what is called "cross
collateral." So for instance, if you have a vehicle loan with a bank and also have a checking
account with the bank, there is an excellent chance that you've signed a contract provision
where you've "pledged" whatever funds you may have in your checking account from time to
time as additional security on the loan.
Hypothecation: It is used when you(borrower) have the actual possession of the asset, for
which you have taken the loan. Generally, this is charged against loans for movable assets,
like car, bus, etc. (vehicle loans). Here, the assets (bus, car, etc.) remain with you, and you
are hypothecated to the bank for the loan granted. In case you are unable to repay the loan
amount, then the bank has the right to sell the asset (bus, car, etc.), (which is possessed by
you) and recover the total amount (with interest).
Mortgage: It is used when you (borrower) have the actual possession of the assets, for
which you are granted loan (e.g., house loan), or against which you are granted loan (e.g.,
house mortgaged). Mortgages are generally those assets, which are permanently attached
with Earth surface, like house, land, factory etc.
In case you are unable to repay the loan amount, the bank has the right to seize and sell the
mortgage, and recover the loan amount (with interest).
MICR
MICR stands for Magnetic Ink Character Recognition.
It is a technology which allows machines to read and process cheques enabling
thousands of cheque transactions in a short time.
MICR code is usually a nine digit code
First three digits: Represent the city code that is the city in which the bank branch is
located.
Next three digits: Bank code
Last three digits: Bank branch code
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e.g. For example, if you have an account with Axis Bank,New Delhi (Defence Colony) then its
nine digit MICR code will be 110211004 where:
110, the first three digits representing the city code for New Delhi;
211, the next three digits representing the bank code for Axis bank;
And 004, the last three digits representing the bank branch code for Defence Colony.
IFSC
IFSC(Indian Financial System Code)
The Payment Systems such as National Electronic Funds Transfer (NEFT), Real Time Gross
Settlement (RTGS) & Centralized Funds Management System (CFMS) used IFS Codes. IFSC
developed by the Reserve Bank of India.
The code consists of 11 Characters :
First 4 characters represent the entity
Fifth position has been defaulted with a 0 (Zero) for future use
Last 6 characters denotes the branch identity
e.g ICIC0000438
NEFT(National Electronic Fund
Transfer)
RTGS(Real Time Gross Settlement)
NEFT is a payment system facilitating

one-to-one funds transfer.
Real Time: Instructions that are

executed at the time they are received,
rather than at some later time.
Gross Settlement: Settlement of funds
transfer instructions occurs individually.
Minimum Amount: Rs.2 lakhs
Minimum Amount: Rs.2 lakhs
Maximum Amount: No upper ceiling
Maximum Amount: No upper ceiling
Timings:8 am to 7 pm(Monday
through Friday and also on Working
Saturdays i.e. Saturdays other than
2nd & 4th Saturdays)..
Timings:8.00 hours to 16.30

hours(Monday through Friday and also
on Working Saturdays i.e. Saturdays
other than 2nd & 4th Saturdays).
Inward transactions: Free, no charges Inward Transactions: Free, no charge

to be levied from beneficiaries
to be levied
Outward transactions:
Outward Transactions:
- For transactions up to Rs 10,000 : not
exceeding Rs 2.50 (+ Service Tax)
Rs 2 lakh to Rs 5 lakh - Not exceeding
-For transactions above Rs 10,000 up to Rs 30 per transaction;
Rs 1 lakh: not exceeding Rs 5 (+
Above Rs 5 lakh - not exceeding Rs 55
Service Tax)
transactions;
-For transactions above Rs 1 lakh and up
to Rs 2 lakhs: not exceeding Rs 15 (+
Service Tax)
-For transactions above Rs 2 lakhs: not
exceeding Rs 25 (+ Service Tax)
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Maximum amount per transaction is limited to Rs.50,000/- for cash-based
remittances and remittances to Nepal
All about NPA
An asset (loan) including a leased asset, becomes non performing when it stops generating
income for the bank.
Once the borrower has failed to make interest or principle payments for 90 days the loan is
considered to be a non-performing asset.
If the status of NPAs in banks is not controlled, banks can become bankrupt.
Reasons for Occurrence of NPAs
Normal banking operations

Bad lending practices
Incremental component due to internal bank management, like credit policy, terms of
credit, etc.
Competition banks are enormously selling unsecured loans
Result of NPAs
Decrease profitability.
Reduce capital assets and lending limits.
Increase loan loss reserves.
How to reduce NPA?

SARFAESI ACT 2002
The Securitisation and Reconstruction of Financial Assets and Enforcement of Security
Interest Act, 2002 (SARFAESI) empowers Banks to recover their non-performing assets
without the intervention of the Court.
3 alternatives
Securitisation
Asset Reconstruction
Enforcement of Security without the intervention of the Court.
Applicable only for NPA loans with outstanding above Rs.1 lakh. NPA loan accounts where
the amount is less than 20% of the principal and interest are not eligible to be dealt with
under this Act.
The Act empowers the Ban
To issue demand notice to the defaulting borrower and guarantor, calling upon them to
discharge their dues in full within 60 days from the date of the notice.
To give notice to any person who has acquired any of the secured assets from the
borrower to surrender the same to the Bank.
To ask any debtor of the borrower to pay any sum due or becoming due to the
borrower.
Any Security Interest created over Agricultural Land cannot be proceeded with.
If the borrower fails to comply with the notice, the Bank may take recourse to the following
measures:
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1.Take possession of the security
2. Sale or lease or assign the right over the security
3. Manage the same or appoint any person to manage the same
Lok Adalats: For the recovery of small loans. They cover NPA up to Rs. 5 lakhs, both suit
filed and non-suit filed are covered.
Compromise Settlement: It is applied to advances below Rs. 10 Crores.
Credit Information Bureau: Help banks by maintaining a data of an individual defaulter
and provides this information to all banks so that they may avoid lending to him/her.
Debt Recovery Tribunal(DRT): The debt recovery tribunal act was passed by Indian
Parliament in 1993.
Objective: Facilitating the banks and financial institutions for speedy recovery of dues in
cases where the loan amount is Rs. 10 lakhs and above.
Balance Sheet
A balance sheet is a snapshot of a business' financial position on one particular

day.
It provides a summary of what a business owns or is owed. It states what assets
the business owns and what liabilities it owes, at a particular date.
The balance sheet is used to show how the business is being funded and how those
funds are being used.
Why it is called Balance Sheet?

Because there is a debit entry and a credit entry for everything, so the total value of the
assets is always the same value as the total of the liabilities.
Contents
Fixed assets:: Long-term
Current assets: Short-term
Current liabilities: What the business owes and must repay in the short term
Long-term liabilities: Owner's or shareholders' capital
Fixed assets
Tangible assets - e.g. buildings, land, machinery, computers, fixtures and fittings.
Intangible assets - e.g. goodwill, intellectual property rights (such as patents, trademarks and
long-term investments.
Current assets e.g. stock, work in progress, money owed by customers, cash in hand or at
the bank, short-term investments, pre-payments
Current liabilities
These are amounts owed to you and due within one year.
money owed to suppliers
short-term loans, overdrafts or other finance
taxes due within the year
Long-term liabilities
Creditors due after one year: Amounts due to be repaid in loans or financing after one
year, eg bank or directors' loans, finance agreements
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Capital and reserves: Share capital and retained profits, after dividends (if your business is
a limited company), or proprietors capital invested in business (if you are an unincorporated
business)
What does a balance sheet show?
How solvent the business is
How liquid its assets are - how much is in the form of cash or can
Be easily converted into cash, i.e. stocks and shares
How the business is financed
How much capital is being used
Current Banking & Finance News(March-Nov 2015)

IMF raises India's growth forecast to 7.2% for current fiscal
India has recovered its economy as IMF (International Monetary Fund) has termed India a
Bright spot on the global economic landscape. IMF on 11th March 2015 has raised its
forecast to 7.2% for current Fiscal.
Reliance Industries Limited is India's largest company in terms of assets

Reliance Industries Limited has become the India's largest company in terms of asset with
the asset worth Rs. 3.68 Lakh Crore. This offer is given by corporate Affairs Minister, Arun
Jaitely by a written reply to Rajya sabha.
Reserve Bank of India has Eased the norms for Home Loans
Reserve Bank of India has eased the norms for home loans for up to 10 lakh rupees by
authorizing the banks to include stamp duty, registration, and other documentation
charges to the cost of a unit.
Reserve Bank of India to put One Rupee note in Circulation

After a long gap of 20 years, one rupee notes are all set to come back into circulation. The
Reserve Bank of India said the notes to be issued would be legal tender as provided in The
Coinage Act 2011.
Bear Ashoka Pillar symbol as Watermark
Carry a hidden numeral in the center
Hidden word Bharat (in Hindi) will be on the right hand side of the note.
Colour Pink Green
Note carries the signature of Finance Secretary Rajiv Mehrishi.
The currency note will contain words Bharat Sarkar and Government of India.
Also carries the rupee symbol of 2015 with Sataymev Jayate words printed on it.
The surrounding design will consist of the picture of Sagar Samart.
HDFC Bank launched mobile app Chillr to instantly transfer money to any
person in India
HDFC Bank announced the launch of Chillr, a mobile app which allows users to instantly
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transfer money to any contact in their phone book. Chillr is a first of its kind application that
is linked directly to the customer's bank account, so there is no need to worry about filling
up a prepaid wallet.
MUDRA Banking The Unbanked
Prime minister shri.Narandra Modi launched the MUDRA bank in new delhi . Micro units
development & refinance angency Ltd. (MUDRA) will refinance the micro finance institutions
through Pradhan Mantri Mudra Yojana. Mudra will also act as a regulator for micro finance
institutions. The bank is launched with a corpus of Rs20,000 crore and a credit guarantee
corpus of Rs 3000 crore.
RBI grants banks freedom to fix Interest rates for term-deposits above Rs.15Lakhs
RBI allows differential interest rate for term deposits above Rs. 15 lakh flows in, the
banks might get a sigh of relief. It is reported that this facility would give the banks flexibleoptions for increasing their transactions and show profitability-reports in the long run.
YES Bank launches RuPay debit card
YES Bank launched the RuPay Debit Card, in association with NPCI. It is a domestic debit
card and will be accepted at over 190,000 ATMs and one million point of sale (PoS)
terminals in the country.
ICICI launches NFC-enabled payment service 'Tap-n-Pay'
ICICI Bank in collaboration with Tech Mahindra launched a payment service 'Tap-n-Pay'
based on the near-field communications (NFC) technology, enabling customers make
over-the-counter payments without using cash. For making payments, the user will have
to bring the NFC tag or the mobile phone near a device at the merchant's facility and the
amount will automatically get debited from the prepaid account.
RBI notified hike in Foreign Direct Investment (FDI) cap in Insurance Sector to 49
percent
The RBI (Reserve Bank of India) on 8 March 2015 notified hike in FDI (Foreign Direct
Investment) limit in Insurance Sector to 49 percent from the present 26 percent.
SBI Launches RuPay Platinum Debit Card

SBI launched a RuPay Platinum debit card in association with National Payment
Corporation of India (NPCI). The RuPay card comes with a special feature for the
convenience of customers that is accepted at all payment channels- ATMs, PoS and
eCommerce. The card offers various benefits like 5 per cent cashback on utility bills,
complimentary airport lounge access. It also offers personal accident death and
permanent total disability insurance cover of Rs 2 lakh.
HDFC in world's top 10 list of consumer finance firms
Mortgage lender HDFC has emerged the only Indian company among the world's 10
biggest consumer financial services firms, after giants like American Express, Visa and
Mastercard.
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State Bank of India launched Online Customer Acquisition Solution

State Bank of India launched Online Customer Acquisition Solution (OCAS), an online
platform to apply for home loans, car loans, education loans and personal loans.
Customers can even upload all necessary documents online, reducing the processing time of
their loan.
First facial recognition ATM developed in China
Chinese researchers from Tsinghua University and Tzekwan Technology, a Hangzhou firm in
eastern China's Zhejiang province that provides security protection for financial
transactions, have developed the first automated teller machine (ATM) with facial
recognition technology.
Federal Bank Launches Co- Branded Credit card in partnership with SBI Cards
Federal Bank forayed into credit card segment through the launch of co-branded credit
cards in partnership with SBI Cards, a leading credit card issuer.
SBI partners with PayPal
The country's largest bank announced a partnership with digital payments firm, PayPal so
that the Customers of State Bank of India (SBI) can now use their debit cards on PayPal
for buying products from overseas websites.
SBI signed pact with Snapdeal
SBI tied up with Snapdeal for funding MSMEs will boost Prime Minister Narendra Modi's
Make-in- India initiatives by putting more funds in the hands of the small entrepreneurs
enabling them to boost their industries.
RBI announced Strategic Debt Restructuring Scheme
Reserve Bank of India announced Strategic Debt Restructuring Scheme. The RBI issues
guidelines on Joint Lenders Forum ( JLF) and Corrective Action Plan (CAP). These measure
provides a more flexible process for lenders to recover bad loans. RBI has made clear
that this scheme is meant to be used when a companys turnaround is being held up by the
inefficiency or failure of the existing management.
SBI Launches Online Forex Platform
Countrys largest lender State Bank of India today said it has launched SBI eforex, an
Internet- based platform that enables customers to book their foreign exchange transactions
online.
India emerges as UKs 3rd largest FDI source in 2014-2015
India has emerged as the 3rd largest source of Foreign Direct Investment (FDI) for United
Kingdom (UK) after United States (US) and France in terms of number of projects.
32 | P a g e

United Bank of India tops list with highest bad loans among PSUs
United Bank of India is at the top in the list of public sector banks with maximum bad
loans including restructured assets as a percentage of total advances. United Bank of Indias
21.5 per cent assets are either bad or have been restructured to save them from turning nonperforming assets (NPAs).
Corp Bank launches MUDRA card on RuPay platform
Corporation Bank has launched the MUDRA card based on the RuPay platform. The card
facilitates the withdrawal and use of the working capital finance by micro entrepreneurs. The
first MUDRA card was launched under the Pradhan Mantri MUDRA Yojana (PMMY).
HDFC Bank launches watch banking
HDFC Bank became the first bank in India to launch Watch Banking for Apple Watch.
Watch banking aims to provide banking services through all wearable devices across
platforms like iOS and Android.
MasterCard phone app to verify online payments via selfies
MasterCard is trying out a smartphone app which allows people to confirm their identity
and authenticate online transactions via a facial scan. The users will have to download
the MasterCard phone app and at checkout they will be asked to hold up their phone to stare
and blink at it. MasterCard is also experimenting with fingerprint and voice recognition.
YES Bank gets RBI nod to open unit in GIFT city
YES Bank has received approval from the Reserve Bank of India to set up IFSC Banking
Units (IBUs) in Gujarat International Finance Tec-City (GIFT). Setting up the IBU will
propel YES Banks growth plans further by providing it access to International financial
markets.
Gujarat International Finance Tec-City (GIFT)

GIFT city aspires to cater to Indias large financial services potential by offering global firms a
world-class infrastructure and facilities. It aims to attract the top talent in the country by
providing the finest quality of life all with integrated townships, IFSC and multi-speciality
special economic zone (SEZ).
Karnataka gets its first skin bank
Karnataka gets its first skin bank at Victoria Hospital, Bengaluru, the first in the state. It
works like an eye bank. The skin bank team goes to a donors house when it receives word
that he has passed away, and harvests the skin within six hours of death. This skin taken
out from thighs can enhance quality of life for those suffering with 50%-60% burns. This
will enable faster healing and help the burns patients. Currently, there are skin banks in
Chennai, Delhi and Mumbai.
33 | P a g e

BRICS bank opens for business in China
The New Development Bank (NDB) floated by the BRICS nations, including India, to step up
infrastructure funding in the emerging economies formally started its operations at its
headquarters Shanghai. Chinese Finance Minister Lou Jiwei, Shanghai Mayor Yang
Xiong and the banks President K V Kamath attended the opening ceremony held in a
hotel in Shanghai.
IDFC gets banking licence from RBI
Infrastructure financing firm IDFC Ltd said that the Reserve Bank of India has granted
banking licence to IDFC Bank for undertaking banking business in the country. Bandhan
Financial got RBI approval last month and is expected to start services from next month. The
Indian microfinance company Bandhan Financial Services and Mumbai-based IDFC were the
only two companies to be granted preliminary bank permits last year.
Yes Bank was the last bank to be set up, in 2004.
CSC, HCL form joint venture to provide technology services, solutions to banks
Global IT leaders CSC (NYSE: CSC) and HCL Technologies (BSE: HCLTECH) announced the
signing of a definitive joint venture agreement to form a banking software and services
company. The joint venture will invest in platform modernization and product functionality
enhancement and will capitalize on the proven capabilities of both companies in addressing.
R Gandhi panel recommended conversion of UCBs into Regular Banks

To strengthen the Urban Cooperative Bank (UCB) structure the Reserve Bank of Indias
(RBI) nine-member High Powered internal Committee on Urban UCBs headed by RBI
Deputy Governor R Gandhi in its report has recommended conversion of UCBs with
business size of 20000 crore rupees or more into regular banks.
RBI to issue 10 rupee coin to mark International Yoga Day
Reserve Bank of India will soon issue 10 rupee denomination coins to commemorate
International Yoga Day which is observed on JUNE 21 every year.
HSBC India to launch green-bonds in India
Naina Lal Kidwai, Chairman of HSBC on August 3, 2015 said in Ficci Event that HSBC India,
worlds fourth largest issuer of green bonds is planning to launch Green bonds in India to
enable fund raising for investments in environmental projects. Green Bonds in India
were initially launched by Axis Bank and Yes Bank. Green bond is a debt instrument with
which a bond issuer gets capital while the investors receive fixed income in the form of
interest.
34 | P a g e

Axis Bank launched the First Multi-Currency Contactless Card service in India
Axis Bank launched the first Contactless Debit, Credit and Multi-Currency Forex Card in
association with VISA the payments gateway company in the country. The bank will offer a
contact less debit/credit cards to its 1.7 million premium customers, which also enables
withdrawal of 15 currencies including Swiss Franc and Hong Kong dollar besides US dollar,
Euro and British Pound via Multi-Currency Forex facility.
Union Government to form Bank Board Bureau
Union Government decided to set up a Bank Board Bureau (BBB) to monitor key
performance pointers of public sector banks (PSBs). Union Finance Minister Arun
Jaitley announced as part of seven-pronged revamp plan for PSBs in Indradhanush
(rainbow) plan. The Banks Board Bureau will recommend appointment of directors in public
sector banks (PSBs) and advise on ways of raising funds and dealing with issues of stressed
assets because banks have a requirement for Rs.180,000 crore over the next four years.
ICICI Bank launched locker facility named Smart Vault
ICICI Bank, Indias largest private sector bank, has launched the Smart Vault, a fully
automated locker available 247, including weekends and after banking hours. The Smart
Vault uses robotic technology to access lockers from the safe vault. It enables customers to
access their lockers in a secure lounge where the locker automatically comes up to the
customer.
Finance Minister launches two funds for promoting MSMEs and Start-ups
With an aim to aid small enterprises and to boost funding for start-ups in the country, the
Union Finance Minister Arun Jaitley launched two funds - the India Aspiration Fund
(IAF) and SIDBI Make in India Loan for Enterprises (SMILE) under Small Industries
Development Bank of India (SIDBI).
Arun Jaitley inaugurated the Bandhan Bank in Kolkata
Finance Minister Arun Jaitley inaugurated the Bandhan Bank as a full-fledged scheduled
commercial bank at a function held in Kolkatas Science City Auditorium and on account of
that India got its first private bank in 11 years.
Bandhan is the first microfinance company to transform into a bank. The bank will
have two distinct wings one will cater to the micro-banking segment, targeting the
rural and un-banked areas and the other will look at general banking services.
Card-less mVisa launched by ICICI

Headquartered Mumbai ICICI Bank again marked its digital advancement by becoming the
first institution worldwide to launch mVisa a card-less and device-less solution friendly with
mobile space. It is developed by Visa International in India. It is interoperable which
35 | P a g e

means that the merchant who is having mVisa network of one bank can able to accept
payments from the other banks having that network.
UCO Bank lodged with highest number of NPAs
As per RBI Kolkata headquartered UCO Bank named as the worst performer in public
sector banks with highest number of non-performing assets (NPAs) recorded against it with
gross advances ratio raised to 8.05% from 4.47% followed by Indian Overseas Bank and
Bank of Maharashtra.
2015 Annual Meetings of World Bank Group and IMF
Annual meeting of the World Bank Group and the International Monetary Fund were held at
Lima, Peru.
In this annual meeting Ministers of finance and central bank governors from the
institutions 188 member countries took part. During the meeting the topics
like international economic and financial developments, the state of the global
economy, and policies to reduce poverty and promote inclusive economic growth were.
RBI: Banks are free to fix Interest Rates on Gold Deposit Scheme
The Reserve Bank of India issued guidelines for the Gold Monetisation Scheme
(GMS) that allow banks to fix their own interest rates on gold deposits.
The gold deposit scheme is aimed at mobilising part of an estimated 20,000 tonnes of
idle precious metal with households and institutions.
As Per guidelines
Banks will be free to set interest rate on such deposit, and principal and interest
of the deposit will be denominated in gold.
Depositor will get an option on redemption of principal and interest at maturity.
The designated banks will accept gold deposits under the Short Term (1-3
years) Bank Deposit (STBD) as well as Medium (5-7 years) and Long (12-15
years) Term Government Deposit Schemes.
The short term bank deposits will be applicable on cash reserve ratio (CRR) and
statutory liquidity ratio (SLR).
There is no bar for maximum gold deposit but the minimum deposit at one time
should be raw gold equivalent to 30 grams of 995 fineness standards.
Payments banks to expand reach of banking in rural areas: World Bank
11 new payments banks is expected to expand penetration of the banking sector in vast
rural areas of the country.
The payments banks would have simplified Know-Your-Customer (KYC), Anti
Money Laundering (AML) and Countering Financing of Terrorism (CFT) norms.
Japan offers to finance Indias first bullet train
Japan has offered to finance Indias first bullet train with an estimated cost of Rs. 90000
crores at an interest rate of less than 1%. The loan is likely to cover 80% of the project.
The loan is on the condition that India buys 30% of equipment including the coaches and
locomotives from Japanese firms
36 | P a g e
As per Japan International Cooperation Agency (JICA) report travel between 505kilometre corridors linking Mumbai and Ahmedabad would be reduced to 2 hours
from existing 7 hours.
The bullet train is expected to have speeds between 300km/h and 350km/h.
RBI fixes gold bonds issue price at Rs 2,684 per gram

Reserve Bank has fixed the public issue price at Rs.2,684 per gram for the sovereign gold
bonds for which applications will be accepted from November 5 to 20.
Aim :
To providing an alternative to buying physical gold, the gold bond scheme will offer investors
an interest rate of 2.75 per cent
Minimum limit : 2 grams
Maximum limit : 500 grams
NaMo launches Neev Fund in UK
Nations first low-income state infrastructure equity partnership or Neev fund was
launched by Prime Minister Narendra Modi in UK in the presence of David Cameron.
The Fund has co-investment from the UK Department of International
Development and Mumbai headquartered State Bank of India.
The fund will invest in small infrastructure projects in eight low-income
states.
The fund aims at providing equity partnerships for small infrastructure development in
sectors like water and sanitation, clean energy and urban infrastructure and to help small
projects to raise capital in the long-term with equitable growth.
RBI to issue Rs 5 coin on golden jubilee of 1965 Indo-Pak war
The Reserve Bank of India (RBI) will shortly put into circulation Rs 5 coins to
commemorate golden jubilee of Indo-Pak War 1965. The coins will be legal tender as
provided in The Coinage Act 2011 and existing coins in this denomination will also
continue to be legal tender.
Bank of Baroda wins first prize under Rajbhasha Kirti Purashar Scheme
This PSU bank has secured the award for its outstanding performance in official
language implementation under the category of nationalized banks in the
linguistic region B for the year 2014-15.
Ranjan Dhawan, MD & CEO of the Bank of Baroda received the award
from President Pranab Mukherjee at Vigyan Bhavan, New Delhi on the

occasion of Hindi Diwas.
Bank of Maharashtra launches MUDRA Card
Bank of Maharashtra (BOM), a leading Public Sector Bank launched MUDRA Card for Micro
and Small entrepreneurs to meet their credit requirement. The card was launched by
Shri. S. Muhnot, CMD of BOM on the occasion of Banks 81st Foundation Day Celebrations.
37 | P a g e

Highlights of the Card:
The MUDRA Card issued as a Rupay Debit Card and it is a hassle free flexible
Credit Product that meets in working capital needs of Micro and Small
Entrepreneurs.
Cash can be withdrawn from any ATM or purchase from Merchandise
using POS machine.
In addition to that, Bank of Maharashtra is offering MUDRA loans at competitive
rates @ Base Rate and no processing charges are levied for the loans up to Rs
5.00 lakh.
FMC merged with SEBI

Forward Markets Commission (FMC) is now fully covered by the capital market
regulator SEBI after the merger. It is first ever merger of two regulatory bodies.
Merging of SEBI and the FMC was decided by the Congress in the Union Budget
of 2014-15
SEBI was set up in 1988 as a non-statutory body for regulating the securities
markets. It became an autonomous body in 1992 with fully independent
powers.
FMC was a regulator for commodities markets since 1953 but due to lack of
powers it led to alleged irregularities and speculative ille
Questions Asked in Previous Interviews

Banking Questions asked in previous Interviews
What is a bank? What are the functions of bank?

If you are posted in a branch with almost no progress, what will you do to
bring it back to life?
Define capital market and money market.
What are the functions of RBI?
What is NABARD? Its full form and functions. Does it work like RBI?
RBI. Its functions and monetary policy.
What is financial inclusion?
How CRR and SLR helps in Economy?
What is RTGS? If its limit is 2 lakh then for transferring money less than 2lakh
what will you do?
What is Ridden Lending?
Phishing? How will you prevent phishing?
Retail Lending? Which lending is better for Banks? Retail or corporate?
What is Balance Sheet?
What is Intangible asset?
38 | P a g e
Explain briefly about CAD and what is the current economic situation of our
country? Is CAD increasing or decreasing now? And why?
What is the impact of dollar outflow? Why there was ban on gold imports?
Explain trade deficit.
What is the benefit of lending?
How many types of loans are there?
Difference between Savings a/c and Savings student a/c?
What is marginal utility?
What is CRR and SLR?
How will you deal with a rural person if he comes to bank to open an account
without any documents?
What is nationalization of banks? What makes government to take up banks?
What is the first quality that a banker should posses?
What is the major problem that all the banks are facing?
Difference between credit card and debit card?
What is a negotiable instrument? How do you transfer a cheque to a payee?
If you have to pass a cheque related to a customer's current account then
what are the observations you will make?
What is MICR?
Which act is used for reducing NPA?
What is draft? What is cross cheque? What is the difference between cross
cheque and Bearer Cheque?
If you are seated in counter then a customer comes and asks you what i have
to do for opening an account then you said to him bring that document this
document he doesn't understand you. Do you have patience to make
understand him about the documents?
What are RTGS and NEFT? Full form and differences.
What is PIN? Can you disclose it to anybody?
Do you use debit card? For what purposes? What we require to use debit card
for payment?
What is Indian Banking System?
What is Banking Ombudsman and what is Single Window in bank?
What is Cross Selling.
Let's say that a new bank branch is about to come up then how will you
inform people about it and get customer?
What are the qualities required in candidate as a PO?
If one person came to you to break his fixed deposit because he needs some
money what will you do?
What is lead banking?
What is priority sector lending?
What is the procedure for granting loan?
Which technology is used in banking?
Payment and small bank purpose
Difference between savings account and current account.
What are the KYC norms?
What is demat account?
What is Purchasing Power Parity?
What is Narrow Banking and Payment gateways?
39 | P a g e
What is the need for payment banks if there are other banks?
What is the benefit of high CASA for banks?
What is Net interest margin?
What are the benefits for a bank in defining risk categories?
We want to start an ATM in rural place where not even a landline connection
is there then how will you provide ATM? Can u tell the antenna name using In
this process?
What is contingent liability?
What is the use of marketing in banks?
What are the differences between private banks and nationalised banks?
What is mean by Cyber crime?
Do you know which bank give highest interest on saving accounts and how
much?
Current Affairs Questions asked in previous Interviews
What do you know about PMJDY?

Tell us something about swachh bharat abhiyan.
What is Bharat Ratna?
Currency of China and its value against rupee.
Number of lok Sabha seats?
What is the maximum no. of ministers that can be formed out of lok sabha ?
Who is the HRD minister?
Names of 4 Dhams and their locations also?
Schemes to alleviate poverty?
Statue of Unity?
Who is the Finance Minister and External Affairs Minister of India?
Highest Civilian Award? Second highest civilian award?
What is spot fixing?
Who received Nobel Prize in Economics this year and for what?
Who won US Open in 2015 . Women Singles?
What is Atal pension yojana and what is mission indradhanush?
What is financial inclusion? When did it start? Which five year plan is going
on?
What is the name of Indias First Lady prime Minister?
What is GDP and GNP and also the difference between both?
Briefly explain Make in India?
What is Sewa Kendra?
What is ISIS and whats their aim?
Prime minister who never visited parliament?
What is call drop and TRAI?
Difference between monetary and fiscal policies?
Who abolished single child policy and why?
What is financial literacy?
Who started "bachpan bachao andolan"?
What is NITI aayog?
What is current GDP and growth rate of India?
40 | P a g e

Personal Questions asked in previous Interviews
Your name ____ its meaning. Where you came from?

How many members in your family?
Your Weakness and strength
Why not you tried for defence?
What's your target in life?
Why banking?
Does banking field interest you or just because your family is in banking field
and You look up to them and that is the reason you want to join it?
Do you watch Bollywood Movies and your favourite Actors?
Tell me some news happened in 2-3 days.
Whats the use of your field in banking?
Do you have bank account? How are you doing your transactions?
Favourite subject?
Tell me what are your hobbies and interests?
How you are different from other candidates?
Any motivational films you have seen?
Why you came to banking even after having work experience?
Can you distinguish between manager and a leader?
Hobbies? (If reading novels)Who is the author of your 1st novel? What is the
name of the novel? Did you like the novel?
Did you like the banking services at your place?
How do you motivate whom you're leading?
Do you know about the recent controversial film?
What you have done for swacch bharat abhiyan?
Why you have a gap of a year after your degree?
What are your top five preference banks? If you are appointed for the other
bank you want to join or not?
Why should we select you? What qualities do you have that others dont?
What is the meaning of your name and give synonyms of it?
What is your fathers profession?
Which bank is your first preference? Why you filled it?
What is the importance of your village or city or town?
If we withdraw money from bank or deposit then message comes at your
registered mobile number. Does it charge money for that?
Dont you think you are overqualified for this job?
What is Bio metric system?
What is the use of computer in banking field?
Why should we hire you for this position?
Interview Experiences
Click here to View Shared Interview Experiences in our website
41 | P a g e
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Interview Capsule IBPS PO V

3 Rules For Overcoming Interview Jitters

Interview Capsule IBPS PO V

How to face Bank Interview

Things to be kept in your mind:

Basic Banking Knowledge: Banking, Banking Business, Debit and Credit,Types of

current affairs especially from the banking sector.

critical issues. Brush up your communication skills

Interview Capsule IBPS PO V

How do you see yourself flourish in Banking Sector after 5 Years?

Interview Capsule IBPS PO V

Interview Capsule IBPS PO V

Interview Capsule IBPS PO V

How do the Banks work?

Interview Capsule IBPS PO V

Intermediary: Banks act as an intermediary between depositors(who lend money

Know your customer(KYC)

Interview Capsule IBPS PO V

All about RBI

Interview Capsule IBPS PO V

Regulating the issue of currency in India

Major functions of RBI

Interview Capsule IBPS PO V

Story behind Nationalization in the 1960s

Interview Capsule IBPS PO V

State Bank of India and its Associates

What are Public Sector Banks?

Interview Capsule IBPS PO V

Interview Capsule IBPS PO V

To initiate steps for technological upgradation and modernisation of existing units.

Interview Capsule IBPS PO V

Provides direct financial assistance to exporters of plant, machinery and related

Interview Capsule IBPS PO V

Checks Price Rigging

All about IMF & WORLD Bank

IMF(International Monetary Fund)

Objective: To deal with all the

Objective: To lessen poverty

IMF is about balancing the

World Bank is for development

Interview Capsule IBPS PO V

You go to the IMF when you are

IMF is a fund. Meaning it has a

You go to the World Bank when

World Bank is a bank. Meaning it

World Bank is a much bigger institution and has two arms:

Interview Capsule IBPS PO V

*Key point: There is no Ombudsman for hearing complaints against NBFCs. In

Interview Capsule IBPS PO V

Self Help Groups(SHG)

Interview Capsule IBPS PO V

Primary Agricultural Credit Societies: Operate at the village or grass-root level.

Interview Capsule IBPS PO V

Refinance facilities: Sector-specific refinance facilities aim at achieving sector specific

Interview Capsule IBPS PO V

4) Fixed Deposit Account(FD)

Interview Capsule IBPS PO V

It refers to Current Account Saving Account Deposits.

Term Deposits are of three kinds

Interview Capsule IBPS PO V