Why you want to enter in Banking industryBecause this industry is growing steadily and there would be no limit to my career growth. Further I need stability in my career.
Why are you not working anywhere from past 6 months ?As competition in banking exams in fierce, I was preparing for bank exams and a job could distract me from my mission. I concentrated on bank exams preparations only.
Can you shift to another city ?Yes, this job means a lot to me. I can move anywhere.
Why you left your previous job ?I can see a better and properous career in banking industry.
Why don't you join your father's business ?He is not making much money so he ordered me to do a job.
What is CRRCash Reserve Ratio is percentage of customer's deposits with commercial banks that they need to deposit with RBI. Right now it's 4%.
What is SLRStatutary Liquidity Ratio is the percentage of liabilities and time deposits that commercial banks need to keep with them in form of Cash, Gold or Government approved securities. Right now SLR is 22%
What is Bank rate
Rate at which RBI lends money to commercial banks without any security.
What are open market operations
Buying and selling of government securities and bonds in open market by Government to maintain desired liquidity levels.
What is Sensex and how it is calculated
Sensex is the index of top 30 stocks in Bomaby Stock Exchange(BSE)
Value of Sensex is calculated using "Free Float Market Capitalization" method.
Free float ratio is number of outstanding shares available for general public to trade.
Formula to calculate Sensex :-
What is CP ?
Commercial paper is a short term unsecured debt instrument.
What are various services provided by a commercial bank ?
- Safe custody of funds
- Advancing loans
- Fund transfers
- Periodic payments
- Underwriting of shares
- Dealing in foreign exchange
- Discounting of loans
What is PPF
Public Provident Fund is a tax saving investment for individuals.
- Number of deposits per year - 1 to 12
- Minimum deposit - Rs 500
- Interest received is tax free
- Investment is exempted under section 80(c)
What are various investments under section 80(C) of Income Tax act
- Fixed deposit (5 years)
- Equity mutual funds
- EPF and VPF
- NSCs (National Saving Certificate)
- NPS (Pension plans)
- Life insurance
Minimum lock-in period for Tax saving Fixed Deposit
What are NPAs
NPA stands for Non-Performing Assets.
Bank gives loans and advances to it's customers. These loans and advances are bank's assets. When the customers don't repay back the bank's money they don't perform. Such assets are known as Non-Permoerming Assets.
What was the purpose of setting up NABARD
NABARD is the apex institution for the development of farm sector , cottage industries and small scale industries in rural areas.
What are various functions of RBI
- Government’s banker and performs banking functions for the central and the state governments.
- Bankers of banks
- Maintain liquidity in the economy
- Regulator of country's financial system
- Regulates and facilitates foreign trade advisor to the Government of India
- Issue currency notes
What is IRDA and what are it's functions
Insurance Regulatory And Development Authority (IRDA) is the sole authority to regulate the insurance industry in India , to ensure the growth of insurance industry and protect the interest of policy holders.
What are Derivatives ?
In Derivative market the value of the instruments bought and sold is based on value of the underlying asset. The value of the instrument is ‘derived’ from the value of the underlying asset and hence it is known as Derivatives.
What is an Option in derivative market ?
An Option give right to Option Holder to buy or sell a commodity during a certain period of time or on a specific date.
What is Call option and Put option ?
Call option - An option which gives right to the Option Holder to buy a certain stock at specified time and specified date
Put option - An option which gives right to the Option Holder to sell a certain stock at specified time and specified date
What is GDP ?
Gross Domestic Product is the sum of all the goods and services produced within physical borders of a country in within a specific period of time.
What is GNP ?
GNP = GDP + Income of residents overseas -Income of Foreigners within the borders of domestic economy
What is Monetary Policy
Policy by which a central authority attempts to control liquidity and interest aimed high growh rate and price stability.
What is Fiscal policy
Government revenue generation and spending policies that impact the macro economy.
What is Fiscal deficit
Excess of government expenditure over revenue
What is DeMat account
It is the process of converting the physical share certificates into equivalent number of electronic holdings
What is RuPay card
RuPay is India’s own card payment system launched by National Payments Corporation of India (NPCI)
Bull and Bear market
When investors expect prices to rise, it's known as Bull market.
When investors expect prices to fall, it's known as Bear market.
What is SWIFT
Financial messaging network which exchanges messages between banks and financial institutions
What is Service Tax
Tax levied on providing services in India, Rate is 12% + 0.36% for Education Cess
What is Mutual Fund ? What is safest type of fund ?
Mutual Fund is a pool of fund where investors invests their money for a common objective.
Benefits of Mutual funds
Exempted under section 80(C)
Managed by experts
Index funds are safest because money is invested in all index stocks. The rise or fall of value align with index.
What is GST
Goods and Services Tax, desision on this tax is pending. GST is going to replace all indirect taxes.