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Which type of questions are asked in bank interview?

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Here is a list of mostly asked Bank Interview Questions and Answers: We have compiled a list of 50 significant banking terminology that will help you prepare for your forthcoming bank exam interview. You will find it simple to prepare for upcoming bank examinations and interviews.

Top 50 Bank Interview Questions and Answers

Here is the complete list of

  1. REPO RATE

When the RBI provides a loan to a bank for a period of one to ninety days, it collects interest from the bank, which is known as the repo rate.

  1. REVERSE REPO RATE

When a bank deposits excess funds in the RBI, the RBI pays the bank interest. This rate of interest is known as the Reverse Repo Rate.

  1. SLR (STATUTORY LIQUIDITY RATIO)

At the end of each business day, every bank is required to keep a specific percentage of their total deposits in the form of (Gold + Cash + Bonds + Securities) themselves.

  1. RETAIL BANKING

Retail banking is a branch of banking that deals directly with retail customers. Consumer banking or personal banking are other terms for this sort of banking. It is the public’s first impression of banking.

  1. BITCOIN

Bitcoin is both a virtual money and a payment method. It is a software protocol that can be defined as a decentralized mechanism of tracking and allocating wealth or economy. Bitcoin generates two cryptographic keys, one public (username) and one private (password).

  1. CALL MONEY

Call/Notice money is money borrowed on demand for a limited period of time. Call Money is money that is lent for a single day.

  1. NOTICE MONEY

Notice Money is money borrowed or lent for more than a day and up to 14 days.

  1. DIFFERENCE BETWEEN THE CAPITAL AND MONEY MARKETS

A capital market is a regulated market that provides long-term financing to businesses. In contrast, the money market provides short-term financing for businesses.

  1. SCHEDULED BANK

Scheduled commercial banks are those that are included on the second schedule of the RBI Act of 1934.

These banks must meet two requirements:

  1. The paid-up capital and cash acquired should not be less than Rs.5 lacs.
  2. The Bank’s activities should not jeopardise the interests of its customers.10. NON-PERFORMING ASSETS

A non-performing asset (NPA) is any asset of a bank that does not generate income. Non performing assets are often commercial loans that are more than 90 days past due and consumer loans that are more than 180 days past due.

  1. MONEY INFLATION

Money inflation is a condition in which the value of money falls while prices rise over time.

  1. NEGAIVE INTEREST RATE

When there is less demand for loans the banks store their excess fund with the central bank through which they collect an interest. Negative interest rate policy (NIRP) states that central banks will deduct money from commercial banks for depositing their money with the central bank.

  1. GREEN BANKING

Green banking entails supporting environmentally friendly practices and lowering your carbon footprint as a result of your banking activity. Green banking attempts to improve operations and technology while also making clients’ habits more environmentally friendly in the banking industry. It is similar to traditional banking, but with a focus on social and environmental concerns in order to protect the environment.

  1. BLOCK CHAIN SYSTEM

Transactions in the banking sector are becoming a very arduous chore these days, and in order to ensure that this tedious task is abolished, our banking industry is attempting to emerge towards block chain technology. It is a big problem to simplify transactions without the assistance of a third party in a safe manner but to overcome this challenge, an anonymous online ledger (collection of financial accounts) that uses the data structure to simplify it is known as blockchain technology.

  1. BALLOON MORTGAGE

A mortgage is the transfer of a right to stable property to secure a debt amount. Balloon mortgages are only available for a limited time and have set interest rates. A balloon mortgage has a lower monthly payment due to a large payment after the term. A balloon payment is intended for trustworthy and qualified borrowers with a strong credit history.

  1. RETAIL CREDIT OPERATIONS

Retail Credit Operations refers to the sequential process of screening, risk evaluation, and guaranteeing that the bank lends to a creditworthy client from the asset product applications sourced.

  1. SKIMMING

Skimming is a technique used by fraudsters to get personal or account information from credit card customers. The customer’s card is swiped through the skimmer, and the information contained in the card’s magnetic strip is read into and saved on the skimmer or an associated computer. Skimming is a technique used mostly for credit card theft, although it is also becoming popular among identity thieves.

18. MONEY LAUNDERING

Money laundering is the process of converting illegal money from multiple sources into money that appears to have originated from a legitimate (Legal) source. Tax evasion, bribery, smuggling, and other unlawful activities are key sources of illegal money.

  1. CHEQUE

A cheque is an unconditional order addressed to a banker and signed by the person who has deposited money with him, requiring him to pay a specified sum of money on demand solely to the order of the specific person or to the bearer of the instrument.

  1. DIRECT DEBIT

Direct Debit is a financial transaction in which one person withdraws funds from the bank account of another. It is a service in which the payee withdraws funds from the payer’s account after the payer has directed the payer to do so.

  1. BANK RATE

The bank rate is also known as the “Discount Rate.” The rate at which the RBI charges a set percentage for lending money to other banks without any security for a long period, usually 90 days, and the current bank rate is 6.75%.

  1. CASH CREDIT

Cash Credit is a proper limit sanctioned by the bank to the borrowing manufacturing/trading unit against the value of raw materials, semi-finished items, finished goods, and stores.

  1. BILL OF EXCHANGE

A bill of exchange is a non-interest-bearing written order that binds one party to pay a specific amount of money to another party at a predetermined future date. The creditor signs and the debtor accepts a bill of exchange.

  1. CASH RESERVES RATIO

Every bank keeps a fixed percentage of its total deposits with the RBI in the form of cash, net demand, and time liabilities. CRR is currently 4%. Every bank is required to pay the sum to the RBI every 15 Days.

  1. MARGINAL STANDING FACILITY

MSF is the rate at which a bank can borrow cash on a short-term, overnight basis.

  1. RBI MINIMUM RESERVE SYSTEM

The Indian government currently uses the “Minimum Reserve System” to issue notes. The minimum reserves to be kept in the form of gold and foreign exchange under this strategy should be Rs 200 crore. The value of gold to be kept in this reserve is Rs. 115 crore. This system was implemented in 1956 to replace the proportional reserve system. So you need to remember above mentioned bank interview questions and answer

Topic for Bank Interview Questions and Answers 2024

RBI’S CLEAN NOTE POLICY

Many people in our country have the bad habit of writing something on the money note, folding it, and even stapling it, which ruins the note and diminishes its longevity. To avert such situations, the RBI implemented the Clean Note Policy in 2001 to extend the life of currency notes. The primary goal of this Clean Note Policy is to offer our citizens with high-quality currency notes and coins.

CAMELS RATING SYSTEM

CAMELS is a US-developed rating system used by supervisory bodies to grade banks and other financial institutions. It applies to all banks in the United States and is also utilized by other financial institutions not in the U.S.

Each factor is given the following weight:

Capital adequacy 20%
Asset quality 20%
Management 25%.
Earnings 15%
Liquidity 10%
Sensitivity 10%
  1. MASALA BONDS

Masala Bonds are bonds that are listed on the London Stock Exchange (LSE). These bonds are offered and settled in US dollars to strengthen the Indian rupee in the international market. These bonds contribute to the collection of Indian rupees from international investors for infrastructure development in India. The International Financial Corporation (IFC) converts bonds from dollars to rupees and then utilizes the rupees to fund private sector investment in India.

  1. PRIMARY BANKING SOLUTIONS

Core Banking Solution (CBS) is a branch network that allows consumers to manage their accounts and obtain banking services from any branch of the bank on the CBS network, regardless of where they keep their accounts. The customer is no longer a Branch customer. He becomes a customer of the bank.

  1. UNIFIED PAYMENT INTERFACE

This interface will connect India’s overall payment system. It employs a single application program interface (API) in conjunction with a variety of APIs. The primary object for all payments is mobile devices.

  1. MICRO ATMS

Micro ATMs are not a subset of ATMs. It is a more advanced version of a point of sale (PoS) with the inclusion of biometric scanning. It is also referred to as a little ATM. These machines are linked to the GPRS (General Pocket Radio Service) mobile internet and use the Core Banking Solution (CBS) platform to provide various services.

33. CREDIT LETTER

One of the negotiable instruments is the letter of credit. The bank guarantees that the buyer’s payment to the seller will be received on schedule, together with the proposed amount to be paid. If the buyer is

unable to make the agreed-upon payment to the seller, the bank will cover the full or remaining price of the transaction.

  1. BANCASSURANCE

Bancassurance is the practice of banks selling insurance products from insurance firms. Under section 6(1)(o) of the Banking Regulation Act of 1949, the bank works as an agent and promotes Banca (bancassurance) products. It began in Europe in the 1980s and was a hit. The bancassurance business concept is a worldwide recognized and profitable enterprise.

  1. BANKING OMBUDSMAN

The RBI appoints a senior officer as the Banking Ombudsman. He handles and resolves consumer complaints about deficiencies in certain banking services. The Banking Ombudsman Scheme was implemented by the RBI in 1995 under Section 35 A of the Banking Regulation Act of 1949.

  1. THE BALANCE OF TRADE

The difference between the value of a country’s exports and imports is known as the Balance of Trade. Unless specified as the balance of merchandise trade, it usually includes trade in services. It includes financial asset earnings (interest, dividends, and so on).

  1. A BALANCE OF PAYMENT

A list of a country’s dealings with other countries over a specific period (generally 1 year). Payments into the country (receipts) are recorded as positive numbers, which are referred to as credits. Payments made outside of the country (payments) are recorded as negative numbers known as debts. The balance of payments surplus is a single number that summarizes the country’s international transactions.

  1. NOSTRO ACCOUNT

A NOSTRO account is kept in a foreign country by an Indian bank.

  1. VOSTRO ACCOUNT

A VOSTRO account is one that a foreign bank maintains in India with its corresponding bank.

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  1. LIBOR

LIBOR stands for London Interbank Offered Rate. It is the interest rate at which monies in marketablesize are borrowed from other banks in the London interbank market.

  1. MIBORMIBOR stands for Mumbai Interbank Offered Rate. It is the interest rate at which monies of marketable size are borrowed from other banks in the Mumbai interbank market.
  2. CASA ACCOUNT

CASA is an acronym that stands for Current Account Savings Account. The CASA ratio shows the value of deposits held in a bank in the form of current and savings account deposits as a percentage of total deposits. A greater CASA ratio indicates that the bank is more efficient in its operations.

  1. RAFA ACCOUNT

RAFA is an acronym that stands for Recurring Deposit Account Fixed Deposit Account. The RAFA ratio indicates how much money a bank has in recurring and fixed deposits.

  1. DEMAT ACCOUNT

Demat Account is an abbreviation for Dematerialized Account. This is a sort of bank account for Indian nationals that allows them to trade in stocks or debentures that are listed on the stock exchange. A demat account, like a savings account, holds stocks that have been saved.

  1. LEGAL TENDER

Bank notes, currency notes, and coins (Re. 1 and above) are legal tender for an infinite sum under the rules of the Coinage Act 1996. The subsidiary coins (below Re. 1) are legal tender for amounts up to and including Re 1. The production of 1, 2, and 3 paisa coins ceased on September 16, 1981.

  1. CURRENCY CHEST

The Reserve Bank of India (RBI) operates currency chests in order to provide the public with high-quality currency notes. However, the RBI has designated commercial banks to open and oversee currency chests on its behalf. Money maintained in commercial banks’ currency chests is deemed to be kept in the RBI.

  1. INSOLVENCY

When an organization, family, person, or firm is declared bankrupt, it is unable to repay its debts on time. Bankruptcy is one of the most prevalent solutions for insolvency.

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  1. BANKRUPTCY

Bankruptcy is a legal designation for a person who is unable to repay debts. Bankruptcy is classified into two types: reorganization bankruptcy and liquidation bankruptcy. Under the reorganization bankruptcy, Debtors should alter their payment schedules to make them more manageable. In contrast, in liquidation bankruptcy, debtors must liquidate their assets to generate funds to pay off their creditors.

  1. AMORTISATION

Amortization is the payment of a debt regularly, such as a loan or a mortgage. Amortization is the process of dividing a lump sum cash flow into several periodic amounts over some time, often known as an amortization schedule.

  1. CREDIT CRUNCHA: A credit crunch can also be referred to as a credit squeeze or a credit crisis. A credit crunch is a condition in which the availability of a loan or credit decreases abruptly. A condition in which credit becomes increasingly difficult to get. It is sometimes possible to obtain funds from financial organizations such as banks, NBFCs, and many other lenders through reverse activities such as tight laws and regulations.

FAQs (Frequently Asked Questions):

What type of questions are asked in bank interviews?

There are many questions related banking sector which mostly asked during interviews.

Can I get the top 10 bank interview questions and answers?

We had shared a complete list of 50 bank interview questions topics.

Is there any specific list of private banking interview questions and answers?

There is no specific list, check the related topic shared above.

How to pass a bank interview?

To clear a bank interview,  firstly research the bank, understand the banking industry, and practice common interview questions.

How can I introduce myself in a bank interview?

Briefly introduce yourself, your educational background, and key skills, listen interviewer’s questions, and then answer them confidently.

How to answer, if you don’t know?

If you don’t know any questions answer, then you can simply say “I don’t know”. It is recommended not to answer if you are not confident.

So, guys, this is all about Bank Interview Questions that will be helpful for you. if you like it do share at Facebook and Instagram.

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