There are few questions, which were asked in IBPS Probationary Officer and IBPS clerk examination. These questions are based on Banking Sector. Candidates should prepare these questions for the upcoming interview of IBPS Clerk and PO. We have also answered few questions. You can check it below.
Why NPA is increasing?
Ans : A Non-performing asset (NPA) is defined as a credit facility in respect of which the interest and/or installment of principal has remained 'past due' for a specified period of time
What is Demat account?
Ans : In India, shares and securities are held electronically in a Dematerialized account, instead of the investor taking physical possession of certificates. A Dematerialized account is opened by the investor while registering with an investment broker (or sub-broker).
What is social Banking?
Ans : An ethical bank, also known as a social, alternative, civic, or sustainable bank, is a bank concerned with the social and environmental impacts of its investments and loans.
What was SBI old name?
Ans : Imperial Bank of India
What is break even point?
Ans : The breakeven point is the sales volume at which a business earns exactly no money. The breakeven point is useful for the following reasons: To determine the amount of remaining capacity after the breakeven point is reached, which tells you the maximum amount of profit that can be generated.
What is Money Laundering?
Ans : The concealment of the origins of illegally obtained money, typically by means of transfers involving foreign banks or legitimate businesses.
What is Deficit Financing?
Ans : Deficit financing, practice in which a government spends more money than it receives as revenue, the difference being made up by borrowing or minting new funds.
What is Financial Inclusion?
Financial inclusion or inclusive financing is the delivery of financial services at affordable costs to sections of disadvantaged and low-income segments of society, in contrast to financial exclusion where those services are not available or affordable.
What is CTS? How it works?
Ans : CTS is basically an online image-based cheque clearing system where cheque images and Magnetic Ink Character Recognition (MICR) data are captured at the collecting bank branch and transmitted electronically. Truncation means, stopping the flow of the physical cheques issued by a drawer to the drawee branch.
Debit Card withdrawal limit?
It was Rs 25000/- per day but now it is changed to Rs 50,000/-
What is IPO ?
Ans : An initial public offering, or IPO, is the first sale of stock by a company to the public. A company can raise money by issuing either debt or equity. If the company has never issued equity to the public, it's known as an IPO. Companies fall into two broad categories: private and public.
What is SEZ?
Ans : The term special economic zone (SEZ) is commonly used as a generic term to refer to any modern economic zone. In these zones business and trades laws differ from the rest of the country. Broadly, SEZs are located within a country's national borders.
What is LAF ?
Ans : Liquidity adjustment facility (LAF) is a monetary policy tool which allows banks to borrow money through repurchase agreements. LAF is used to aid banks in adjusting the day to day mismatches in liquidity. LAF consists of repo and reverse repo operations.
What is FII ?
Ans : Foreign Institutional Investor - FII' An investor or investment fund that is from or registered in a country outside of the one in which it is currently investing. Institutional investors include hedge funds, insurance companies, pension funds and mutual funds.
What is ECGC?
Ans : Export Credit Guarantee Corporation of India.The ECGC Limited (ECGC) was established on 30 July 1957 with an objective to provide insurance cover in respect of risks in export trade
What is CASA?
Ans : The CASA (current and savings account) ratio is the ratio of deposits in the current and savings accounts of a bank to its total deposits. A high CASA ratio indicates that a higher portion of the banks deposits come from current and savings accounts.
What is Liquidity?
Ans : Liquidity is characterized by a high level of trading activity. Assets that can be easily bought or sold are known as liquid assets. 2. The ability to convert an asset to cash quickly.
Functions of RBI?
Ans : Issue of Bank Notes, Banker to Government, Custodian of Cash Reserves of Commercial Banks, Custodian of Country’s Foreign Currency Reserves, Lender of Last Resort, Central Clearance and Accounts Settlement, Controller of Credit
What is NABARD?
Ans : National Bank for Agriculture and Rural Development.These organizations help NABARD by advising and giving monetary aid for the upliftment of the people in the rural areas and optimizing the agricultural process
What is KYC Form?
Ans : Know your customer (KYC) is the form used by a bank to verify the identity of their clients
Types of customers?
Ans : Loyal, Impulsive, Need Based Customers, Wandering Customers
What is Fund Flow?
Ans : Fund Flow' The net of all cash inflows and outflows in and out of various financial assets. Fund flow is usually measured on a monthly or quarterly basis. The performance of an asset or fund is not taken into account, only share redemptions (outflows) and share purchases (inflows).
Full form of CORE?
Ans : Core banking Solution
What is VAT, MAT?
Ans : Value-added tax (VAT)
What is Balance Sheet?
Ans : 'Balance Sheet' A financial statement that summarizes a company's assets, liabilities and shareholders' equity at a specific point in time. These three balance sheet segments give investors an idea as to what the company owns and owes, as well as the amount invested by the shareholders
What is Mutual Fund?
Ans : 'Mutual Fund' An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets
Credit Rating Agency?
Ans : A credit rating agency (CRA, also called a ratings service) is a company that assigns credit ratings, which rate a debtor's ability to pay back debt by making timely interest payments and the likelihood of default.
IT products in Banking?
What is Plastic Money?
Ans : Plastic money is a term that is used predominantly in reference to the hard plastic cards we use everyday in place of actual bank notes. They can come in many different forms such as cash cards, credit cards, debit cards, pre-paid cash cards and store cards
Who is the regulator of banks?
Ans : Reserve Bank of India
Types of Account in Bank ?
Ans : Current, Saving, Recurring, Fixed and Term Deposit Accounts in India.
Who Signs on Bank Notes?
Ans : RBI Governor's signature
Who Signs on Re 1 note?
Ans : Finance secretary
What is recurring deposits?
Ans : Recurring Deposit is a special kind of Term Deposit offered by banks in India which help people with regular incomes to deposit a fixed amount every month into their Recurring Deposit account and earn interest at the rate applicable to Fixed Deposits
What is growth in Economy?
Economic growth is an increase in the production and consumption of goods and services. It entails increasing population and/or per capita consumption. It is indicated by increasing gross domestic product (GDP).
What is REPO rate?
If banks are short of funds they can borrow rupees from the Reserve Bank of India (RBI) at the repo rate, the interest rate with a 1 day maturity. If the central bank of India wants to put more money into circulation, then the RBI will lower the repo rate.
What is current Bank Rate?
What is merchant banking?
A merchant bank is a financial institution that provides capital to companies in the form of share ownership instead of loans.
Who is the chairman of SBI?
Ans : Arundhati Bhattacharya
Saving Account Interest Rate?
Ans : 4%
Why NPA is increasing?
Ans : A Non-performing asset (NPA) is defined as a credit facility in respect of which the interest and/or installment of principal has remained 'past due' for a specified period of time
What is Demat account?
Ans : In India, shares and securities are held electronically in a Dematerialized account, instead of the investor taking physical possession of certificates. A Dematerialized account is opened by the investor while registering with an investment broker (or sub-broker).
What is social Banking?
Ans : An ethical bank, also known as a social, alternative, civic, or sustainable bank, is a bank concerned with the social and environmental impacts of its investments and loans.
What was SBI old name?
Ans : Imperial Bank of India
What is break even point?
Ans : The breakeven point is the sales volume at which a business earns exactly no money. The breakeven point is useful for the following reasons: To determine the amount of remaining capacity after the breakeven point is reached, which tells you the maximum amount of profit that can be generated.
What is Money Laundering?
Ans : The concealment of the origins of illegally obtained money, typically by means of transfers involving foreign banks or legitimate businesses.
What is Deficit Financing?
Ans : Deficit financing, practice in which a government spends more money than it receives as revenue, the difference being made up by borrowing or minting new funds.
What is Financial Inclusion?
Financial inclusion or inclusive financing is the delivery of financial services at affordable costs to sections of disadvantaged and low-income segments of society, in contrast to financial exclusion where those services are not available or affordable.
What is CTS? How it works?
Ans : CTS is basically an online image-based cheque clearing system where cheque images and Magnetic Ink Character Recognition (MICR) data are captured at the collecting bank branch and transmitted electronically. Truncation means, stopping the flow of the physical cheques issued by a drawer to the drawee branch.
Debit Card withdrawal limit?
It was Rs 25000/- per day but now it is changed to Rs 50,000/-
What is IPO ?
Ans : An initial public offering, or IPO, is the first sale of stock by a company to the public. A company can raise money by issuing either debt or equity. If the company has never issued equity to the public, it's known as an IPO. Companies fall into two broad categories: private and public.
What is SEZ?
Ans : The term special economic zone (SEZ) is commonly used as a generic term to refer to any modern economic zone. In these zones business and trades laws differ from the rest of the country. Broadly, SEZs are located within a country's national borders.
What is LAF ?
Ans : Liquidity adjustment facility (LAF) is a monetary policy tool which allows banks to borrow money through repurchase agreements. LAF is used to aid banks in adjusting the day to day mismatches in liquidity. LAF consists of repo and reverse repo operations.
What is FII ?
Ans : Foreign Institutional Investor - FII' An investor or investment fund that is from or registered in a country outside of the one in which it is currently investing. Institutional investors include hedge funds, insurance companies, pension funds and mutual funds.
What is ECGC?
Ans : Export Credit Guarantee Corporation of India.The ECGC Limited (ECGC) was established on 30 July 1957 with an objective to provide insurance cover in respect of risks in export trade
What is CASA?
Ans : The CASA (current and savings account) ratio is the ratio of deposits in the current and savings accounts of a bank to its total deposits. A high CASA ratio indicates that a higher portion of the banks deposits come from current and savings accounts.
What is Liquidity?
Ans : Liquidity is characterized by a high level of trading activity. Assets that can be easily bought or sold are known as liquid assets. 2. The ability to convert an asset to cash quickly.
Functions of RBI?
Ans : Issue of Bank Notes, Banker to Government, Custodian of Cash Reserves of Commercial Banks, Custodian of Country’s Foreign Currency Reserves, Lender of Last Resort, Central Clearance and Accounts Settlement, Controller of Credit
What is NABARD?
Ans : National Bank for Agriculture and Rural Development.These organizations help NABARD by advising and giving monetary aid for the upliftment of the people in the rural areas and optimizing the agricultural process
What is KYC Form?
Ans : Know your customer (KYC) is the form used by a bank to verify the identity of their clients
Types of customers?
Ans : Loyal, Impulsive, Need Based Customers, Wandering Customers
What is Fund Flow?
Ans : Fund Flow' The net of all cash inflows and outflows in and out of various financial assets. Fund flow is usually measured on a monthly or quarterly basis. The performance of an asset or fund is not taken into account, only share redemptions (outflows) and share purchases (inflows).
Full form of CORE?
Ans : Core banking Solution
What is VAT, MAT?
Ans : Value-added tax (VAT)
What is Balance Sheet?
Ans : 'Balance Sheet' A financial statement that summarizes a company's assets, liabilities and shareholders' equity at a specific point in time. These three balance sheet segments give investors an idea as to what the company owns and owes, as well as the amount invested by the shareholders
What is Mutual Fund?
Ans : 'Mutual Fund' An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets
Credit Rating Agency?
Ans : A credit rating agency (CRA, also called a ratings service) is a company that assigns credit ratings, which rate a debtor's ability to pay back debt by making timely interest payments and the likelihood of default.
IT products in Banking?
What is Plastic Money?
Ans : Plastic money is a term that is used predominantly in reference to the hard plastic cards we use everyday in place of actual bank notes. They can come in many different forms such as cash cards, credit cards, debit cards, pre-paid cash cards and store cards
Who is the regulator of banks?
Ans : Reserve Bank of India
Types of Account in Bank ?
Ans : Current, Saving, Recurring, Fixed and Term Deposit Accounts in India.
Who Signs on Bank Notes?
Ans : RBI Governor's signature
Who Signs on Re 1 note?
Ans : Finance secretary
What is recurring deposits?
Ans : Recurring Deposit is a special kind of Term Deposit offered by banks in India which help people with regular incomes to deposit a fixed amount every month into their Recurring Deposit account and earn interest at the rate applicable to Fixed Deposits
What is growth in Economy?
Economic growth is an increase in the production and consumption of goods and services. It entails increasing population and/or per capita consumption. It is indicated by increasing gross domestic product (GDP).
What is REPO rate?
If banks are short of funds they can borrow rupees from the Reserve Bank of India (RBI) at the repo rate, the interest rate with a 1 day maturity. If the central bank of India wants to put more money into circulation, then the RBI will lower the repo rate.
What is current Bank Rate?
What is merchant banking?
A merchant bank is a financial institution that provides capital to companies in the form of share ownership instead of loans.
Who is the chairman of SBI?
Ans : Arundhati Bhattacharya
Saving Account Interest Rate?
Ans : 4%