BANK INTERVIEW QUESTION

Bank Interview Questions/ Interview Question For Bank/Bank Clerk Interview Questions/Bank PO Interview Questions/IBPS Common Interview Questions.

Q1) Tell us something about yourself?

Q2) What are your Strengths and Weaknesses ?

Q3) What is your aim and why do you want to join banking sector?

Q4) Why Banking sector after B.tech?

Now IBPS will conduct common job interviews for nationalised banks

First of all congratulations to all candidates who have qualified in the IBPS PO CWE held in the month of june 2012. Banks are one of the biggest recruiting agencies in the country as it hires for its posts from almost all the streams.IBPS ,an autonomous body conducts a common written examination (CWE) for these nationalised banks.The qualified  candidates then have to appear for an bank interview if they meet the cut-offs prescribed by the banks.

A candidate with a good score applies in multiple banks and appears for interviews conducted by them, but in the end when a candidate gets through four or five banks, he chooses one bank.

Because of this, banks are unable to fill up their vacancies and currently, almost 70% of candidates who clear the entrance examination do not get called for an interview.

The finance ministry has held preliminary discussions with the banks to solve this problem.As a result of which finance ministry decided that the candidates  appearing for the common bank entrance exam may soon

REGIONAL RURAL BANK,EXIM BANK,SIDBI,NHB

REGIONAL RURAL BANK :

1) REGIONAL RURAL BANK were set up by an ordinance in 1975, later replaced by RRBs Act, 1976 as pre Banking Commission recommendation in 1975.

2) Father of RRB is M.Swaminathan.

3) The Govt. of India had appointed a Working Group on rural Banks under the chairmanship of Mr. M. Narasimham in 1975. First 5 RRBs were set up on 2 nd Oct.,

4) At the end of June 1985, 183 RRBS with the network of 10,245branches have opened in the states of the Indian union. .

OBJECTIVES OF RRB:

1)To provide banking services to the rural people to their door steps as they are unable to get such services in the rural areas.

International Monetary Fund(imf)

• The International Monetary Fund (IMF) is an international Economic organization.Its main purpose is to oversee global financial health and provide assistance when needed to its members.
• The major countries of Europe and America control the IMF. This is because they have given more money to IMF by way of first subscriptions, and so have larger share of voting rights.

Formation of IMF:

It was created on July 22, 1944 at the Bretton Woods Conference and came into existence on December 27, 1945 when 29 countries signed the Articles of Agreement.

Headquarters:

It has its headquarters in Washington, D.C., USA.

Membership:

1) The IMF describes itself as “an organization of 188 countries (as of April 2012), working to foster global

Asian Development Bank (ADB) and ADB Institute(ADBI)

Asian Development Bank (ADB)

•        The Asian Development Bank (ADB) is a regional development bank established on 22 August 1966 to facilitate economic development of countries in Asia.
•         The bank admits the members of the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP, formerly known as the United Nations Economic Commission for Asia and the Far East) and non-regional developed countries.
•          ADB was modeled closely on the World Bank, and has a similar weighted voting system where votes are distributed in proportion with member's capital subscriptions.

Headquarters of Asian Development Bank:

World Bank And The World Bank Group(wbg)

World Bank

           The World Bank was established in 1944 and is headquartered in Washington, D.C with more than 100 offices worldwide and over 10,000 employees.

The World Bank is divided into two development institutions owned by 186 member countries:

1. The International Bank for Reconstruction and Development (IBRD) aims to reduce poverty in middle-income and creditworthy poorer countries.

2. The International Development Association (IDA) focuses on the world's poorest countries.

   The World Bank provides financial and technical assistance to developing countries around the world. The

COMMERCIAL BANKS AND ITS FUNCTIONS

    An institution which accepts deposits, makes business loans, and offers related services. Commercial banks also allow for a variety of deposit accounts, such as checking, savings, and time deposit. These institutions are run to make a profit and owned by a group of individuals, yet some may be members of the Federal Reserve System. While commercial banks offer services to individuals, they are primarily concerned with receiving deposits and lending to businesses.

FUNCTIONS OF COMMERCIAL BANKS

The functions of commercial banks are of two types.

TYPES OF BANK ACCOUNTS

1)Savings Bank Account:

Savings Bank Accounts are meant to promote the habit of saving among the citizens while allowing them to use their funds when required.

NOTE:

-The rate of interset is very lov in Saving bank account.

-The main advantage of Savings Bank Account is its high liquidity and safety.

-Maximum 25 transactions in a day is allowed.

2)Bank Fixed Deposits:

STRUCTURE OF BANKING SYSTEM

RBI Reserve Bank of India / Structure of banking system in India

Reserve Bank of India

The Reserve Bank of India was established on April 1, 1935 in accordance with theprovisions of the Reserve Bank Of India Act, 1934.All Indian banks are controlled by Reserve Bank of India. That is why RBI is known as Banker’s Bank.

Commercial banks

An institution which accepts deposits, makes business loans, and offers related services. Commercial banks also allow for a variety of deposit accounts, such as checking, savings, and time deposit. These institutions are run to make a profit and owned by a group of individuals, yet some may be members of the Federal Reserve System. While commercial banks offer services to individuals, they are primarily concerned with receiving deposits and lending to businesses.

 TYPES OF COMMERCIAL BANKS:

FINANCE COMMISSION AND LAW COMMISSION OF INDIA

Finance Commission/ Functions of Finance Commission/ Chairman of Finance Commission of India/ Law commission of India

 Finance Commission of India

          The Finance Commission of India came into existence in 1951. It was established under Article 280 of the Indian Constitution by the President of India.At that time Rajendra  Prasad was the president of India. . The Indian Finance Commission Act was passed to give a structured format to the Finance Commission of India as per the world standard.

Why Finance Commission was formed?

=> To define the financial relations between the centre and the state.

Functions Of The Finance Commission:

The Finance Commission's duty is to recommend to the President as to-

Key Rates and other news for Bank Exams

Bank key rates/ latest rates for CRR, SLR, Bank rate, repo rate, reverse repo rates/ RBI Key rates

1.Revised Rate of RBI

A. Bank Rate -8.25% 

B. Cash Reserve Ratio - 4% 

C. Repo Rate - 7.25% 

D. Reverse Repo Rate - 6.25% 

2. Growth Rate of GDP (2011-12) - 6.9%

A. Agriculture sector - 2.5%

B. manufacturing sector - 3.9%

C. service sector - 11.2%

3. Target for Growth Rate of GDP (2012-13)

A. Budget - 7.6%

B. Monetary policy - 7.3%

C. United Nation - 7.5%

D. OECD - 7.5% in 2013

4.Per capita income (2011-12) per year

A. At constant prices (2004-05) - Rs.38,005

B. At current prices - Rs. 60,972.

5. Per capita income (2010-11) per year

A. At constant prices (2004-05) - Rs. 35,993

B. At current prices - Rs. 53,331.

6. 12th Five Year Plan (2012-17)

A. Theme - Faster, sustainable and more inclusive growth

B. $ 1 trillion (50 Lakh Crore Rs.) investments in Infrastructure in which USD 500 billion will be met by private sector.

C. 9 - 9.5% GDP growth

D. 4% agriculture growth

E. Literacy rate - 100%

F. Extra Power generation capacity - 76000 MW

7. 11th Five year plan recorded 8.2% GDP Growth. Agriculture growth 3.3%

8. The Micro Finance Institutions (Development and Regulation) Bill, 2012

A. RBI has regulatory power to fix the maximum interest rates that MFIs can charge and also decide on the fair and reasonable method of loan recovery.

B. MFIs have to register in RBI

C. Net worth of MFIs 5 Lac Rs

D. Micro Finance Development council will be set up e. Loan to MFIs will be consider in priority lending sector for bank 11. In 2011-12 => Import - $488.6 billion (32% Increased) Export - $303.7 billion (21% Increased) Trade deficit -$184.9 billion.

Incoming searches:
Bank key rates/ latest rates for CRR, SLR, Bank rate, repo rate, reverse repo rates/ RBI Key rates

PLANNING COMMISSION OF INDIA and NATIONAL DEVELOPMENT COUNCIL

Planning Commission of India / Functions of Planning Commission of India / Chairman of Planning Commission/ National Development Council / Functions of NDC National development council

PLANNING COMMISSION OF INDIA

1)The Planning Commission is an institution in the Government of India, which

formulates India's Five-Year Plans, among other functions.

2) The Planning Commission in India was formed in March 1950 under Chairmanship of   Pt. Jawaharlal Nehru.

3) Pt. Jawaharlal Nehru was the first chairman of the Planning Commission.

4) It is a statutory body.

5) It was formed to promote a rapid rise in the standard of living of the people by utilizing the resources of the country, increasing production and offering employment opportunities to all.

    COMPOSITION

rrb,exim,sidbi and nhb

 REGIONAL RURAL BANK (RRB):

1) REGIONAL RURAL BANK were set up by an ordinance in 1975, later replaced by RRBs Act, 1976 as pre Banking Commission recommendation in 1975.

2) Father of RRB is M.Swaminathan.

3) The Govt. of India had appointed a Working Group on rural Banks under the chairmanship of Mr. M. Narasimham in 1975. First 5 RRBs were set up on 2 nd Oct.,

4) At the end of June 1985, 183 RRBS with the network of 10,245branches have opened in the states of the Indian union. .

OBJECTIVES OF RRB:

1)To provide banking services to the rural people to their door steps as they are unable to get such services

State Bank of India (SBI) and SBI associate bank

SBI  is the largest Public Sector Bank in INDIA.

SBI is a State owned Bank.

 SBI establishment day celebrated on 1st july.

 The headquarters of SBI is in Mumbai, India.

FORMATION OF SBI:
Three Presidency Banks were set up under British East India company-Bank of Calcutta, Bank of Madras and Bank of Bombay.

 Bank of Calcutta established in 1806 and later on became Bank of Bengal.

        

Two other presidency bank was established, Bank of Bombay in 1840 and Bank of Madras in 1843. These three banks were private shareholders’ bank.

       

 East India Company also contributed to the share capital of each of them.
       

The bulk of the share capital had come from private shareholders mostly Europeans.
       
Presidency Banks were amalgamated into the Imperial Bank of India (IBI) which was established in 27 January 1921.

NATIONALISATION OF SBI:

        

 In 1955 share of SBI was acquired by Reserve Bank of India.
        

On 30 April 1955 RBI renamed Imperial Bank of India (IBI) as State Bank of India.State Bank of India (Subsidiary Banks) Act passed in 1959.
      

In 1959, eight banks were converted as associate banks of SBI

1.State Bank of Bikaner

2.State Bank of Jaipur

3.State Bank of Hyderbad

4.State Bank of Indore

5.State Bank of Mysore

6.State Bank of Saurashtra

7.State Bank of Patoila

8.State Bank of Travancore

        

 In 1963, State Bank of Bikaner and State Bank of Jaipur were merged to form State Bank of Bikaner and Jaipur.
        

 In 2008, State Bank of Saurashtra was merged with the Parent Bank- SBI In 2010, State Bank of Indore was merged with – SBI.
         

The total number of Associate Banks of SBI currently working in India- Five (5) .
         

SBI has about 25,000 ATMs
         

SBI has 27000 branches including branches that belong to its associate banks.

Slogans of SBI:

1.With you all the way.

2.Pure banking nothing else.

3.The Banker to every Indian.

4.The Nation banks on us.

IMPORTANT POINTS:

         

SBI was nationalised according to SBI Parliament Act 1955.
        

SBI was established on recommendation of All India Rural Credit Survey headed by Shri A.D. Gorewala.

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RESERVE BANK OF INDIA -POINTS TO REMEMBER

Reserve Bank of India/ Important Facts about RBI Reserve Bank of India/ Important Points about RBI Reserve Bank of India
 - Reserve Bank of India (RBI) is the Central Bank Of India.
 - There is only 1 central Bank in India.

 - Reserve Bank of India established on 1 April 1935 in accordance with provision of RBI Act 1934.

 - Reserve Bank of India (RBI) established on the recommendation of Hilton-Young Commission. 

 - Initially RBI was constructed as a Private share holders’ bank.

 - RBI is a statutory body.

 - Emblem of RBI: Panther and Palm Tree.

 - Initially the headquarter of RBI was in Calcutta but in 1937 it was permanently moved to Mumbai.

 - The Reserve Bank of India has 4 regional offices,15 branches and 5 sub-Offices.

 - RBI can issue currency notes as much as the country requires, provided it has to make a security deposit

banks in india and their history

History of Banks in India / Banks History / First Bank in India

-The story of Bank starts from Bank Of Hindustan established in 1779 and it was first bank at Calcutta under European management.

-Three Presidency Banks were set up under British East India company-

 1) Bank of Calcutta,

 2) Bank of Madras and 

 3) Bank of Bombay.

-Bank of Calcutta established in 1806 and later on became Bank of Bengal.

-First Bank managed by Indians founded in 1881 was Oudh-Commercial Bank.

-Punjab National Bank established in 1894 and is the first bank purely managed by Indians.

-Banking regulation Act, passed in Feb 1949.

Overview of Banking Institutions in India

Scheduled and Non-Scheduled Banks/ What are scheduled banks/ what are non scheduled banks

         In India the central banking authority is the Reserve Bank of India. It is also referred to as the “Apex Bank”. It functions under an act called The Reserve Bank of India Act’1934. All the banks and other financial institutions operating in India come under the monitoring and control of RBI. RBI controls the banking sector in India through an act called “the banking Regulations Act’ 1949. In the past, when there were very few banks, RBI used to include all the scheduled banks in its schedule. A Bank that is not a scheduled bank is referred to as “Non scheduled” bank even in its banking licence.

The difference lies in the type of banking activities that a bank can carry out in India. In the case of a scheduled bank, it is licensed by the RBI to carry on extensive banking operations including foreign exchange

Important Institutions: NABARD

NABARD (National Bank for Agriculture and Rural Development )/ Important Points About NABARD
In this post about banking awareness we are going to tell you in brief about NABARD. You should read it to enhance your knowledge about Banking Awareness for Bank Exams as well as for your Interviews.

NABARD: National Bank for Agriculture and Rural Development (NABARD) is an apex development bank in India having headquarters based in Mumbai (Maharashtra) and other branches are all over the country.

Established on: NABARD was established on 12 July 1982 by a special act of the parliament, its main focus was to uplift rural India by increasing the credit flow for elevation of agriculture & rural non farm

SOME IMPORTANT BANKING TERMS

Banking Terms/ Important Definations for bank exams/ Terms used in banking

RBI – The Reserve Bank of India is the apex bank of the country, which was constituted under the RBI Act, 1934 to regulate the other banks, issue of bank notes and maintenance of reserves with a view to securing the monetary stability in India.

Demand Deposit – A Demand deposit is the one which can be withdrawn at any time, without any notice or penalty; e.g. money deposited in a checking account or savings account in a bank.

Time Deposit – Time deposit is a money deposit at a banking institution that cannot be withdrawn for a certain "term" or period of time. When the term is over it can be withdrawn or it can be held for another term.

Fixed Deposits – FDs are the deposits that are repayable on fixed maturity date along with the principal and agreed interest rate for the period. Banks pay higher interest rates on FDs than the savings bank account.

Recurring Deposits – These are also called cumulative deposits and in recurring deposit accounts, a certain