SBI, BOB, IBPS Interview Book PDF

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1 Adda247 | No. 1 APP for Banking & SSC Preparation

Website: store.adda247.com | Email: ebooks@adda247.com
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INDEX
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Contents
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PREFACE ....................................................................................................................................... 5
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1. What is Interview? .................................................................................................................... 7
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2. What to expect in Banking Recruitment Interview? ............................................................ 10
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3. Essentials for Banking Recruitment Interview .................................................................... 12
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4. How to introduce yourself in an interview? ......................................................................... 15
5. Formal Attire ........................................................................................................................... 26
6. Body Language ........................................................................................................................ 29
7. General Knowledge for Banking Interview ......................................................................... 32
8. Banking Awareness for Bank Interview ............................................................................... 41
Part 1: Banking Awareness (Theory) ......................................................................................... 41
Topic 1: RESERVE BANK OF INDIA (RBI) & ITS FUNCTIONS ...................................... 41
Topic 2: FUNCTIONS OF RBI ................................................................................................... 43
Topic 3: FISCAL POLICY ............................................................................................................ 58
Topic 4: SCHEDULED BANK & BANK ACCOUNTS IN INDIA ...................................... 61
Topic 5: FINANCIAL INCLUSION .......................................................................................... 64
Topic 6: NPA-NON-PERFORMING ASSET & SARFAESI ACT 2002 .............................. 68
Topic 7: HYPOTHECATION, PLEDGE, & MORTGAGE .................................................... 72
TOPIC 8: ALL ABOUT THE MARGINAL COST OF FUNDS BASED LENDING RATE
(MCLR) ............................................................................................................................................ 74
Topic 9: IMPORTANT POINTS ON ATM IN INDIA .......................................................... 76
Topic 10: CODES WHICH ARE USED IN BANKING SECTOR........................................ 77
TOPIC 11: BANKING OMBUDSMAN SCHEME 2006 ........................................................ 78
Topic 12: DEPOSIT INSURANCE AND CREDIT GUARANTEE CORPORATION
(DICGC) .......................................................................................................................................... 80
Topic 13: THE BIGGEST MERGER: SBI MERGER 2017 ..................................................... 81
Topic 14: THE CHANGE IN THE TAX STRUCTURE IN INDIA: ALL ABOUT THE
GST .................................................................................................................................................. 83
Topic 15: What are the NEGOTIABLE INSTRUMENTS & the ACT 1881? ...................... 86
Topic 16: THE PRIORITY SECTOR LENDING (PSL) .......................................................... 93

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Topic 17: FINANCIAL MARKETS IN INDIA AND THE INSTRUMENTS .................... 99
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Topic 18: IMPORTANT MISCELLANEOUS BANKING AWARENESS TOPICS ....... 106
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Topic 19: ACCOUNTS FOR FOREIGN (CURRENCY/PERSON) IN INDIA ................. 110
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Topic 20: FINANCIAL INSTITUTIONS in INDIA ............................................................. 113
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Topic 21: IMPORTANT FINANCIAL TERMS IMPORTANT FOR SBI INTERVIEW 116
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Topic 22: NBFC‟S IN INDIA ..................................................................................................... 121
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Topic 23: DEVELOPMENTS IN THE BANKING SECTOR .............................................. 123
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Topic 24: ALL ABOUT THE PAN CARD............................................................................... 128
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Topic 25: ALL ABOUT THE PREPAID INSTRUMENTS .................................................. 130
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Topic 26: RISK MANAGEMENT IN BANKING SECTOR .............................................. 132
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Topic 27: A BRIEF ON INDIAN BANKS' ASSOCIATION (IBA) .................................... 138
Part 2: Banking Current Affairs-2017 ...................................................................................... 140
Part 3: Important Banking & Economy Questions for the SBI PO 2017 Interview ............. 161
9. Dos and Don‟ts for Interview .............................................................................................. 178
10. Interview Experiences ......................................................................................................... 180
1. SBI PO 2016: Interview Experience-1 .................................................................................. 180
2. SBI PO 2016: Interview Experience-2 .................................................................................. 185
3. Bank of Baroda PO 2016 ........................................................................................................ 192
4. IBPS SO (IT Officer) 2016 – UCO Bank .............................................................................. 196
5. IBPS SO (Rajbhasha Adhikari) 2016 – Bank of India ...................................................... 202
6. LIC AAO 2016 .......................................................................................................................... 206
7. IBPS RRB Officer Scale –I ..................................................................................................... 209
8. IBPS RRB General Banking Officer Scale 2 ...................................................................... 214
9. IBPS PO 2015 – Bank of India ............................................................................................. 221
10. IBPS PO ................................................................................................................................... 226
11. Important Interview Questions ......................................................................................... 231
(I) Previously asked Personal Questions................................................................................ 237
(II) Subject-wise/ Field Related Interview Questions ......................................................... 239
(III) Some Random Questions .................................................................................................. 249
(IV) Solved Examples of Tricky Interview Questions ......................................................... 251
12. What is a Group Discussion? ............................................................................................. 267
13. Group Exercise: Introduced in SBI PO 2016 ..................................................................... 274

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PREFACE
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Banking examinations have evolved a lot from 2016, with changes in
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pattern now bank recruitment exams are dynamic in lieu of their
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conventional hold. During this year we have evolved the study material
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for all bank examinations weather it is SBI PO, SBI Clerk, IBPS PO, IBPS
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Clerk, IBPS RRB, SSC CGL, NIACL, NICL RBI Officer and Assistant and now
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we provide you the new edition which caters to the need for ever-
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progressing demands and pattern of all Banking and SSC recruitment
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examinations.
The aim of this book is equip students with the art to tackle the final
phase of bank recruitment process: Personal Interview and Group
Discussion. Overall the book is designed and categorised into proper
sections dealing with Personal Interview, Group Discussion and Group
Exercise (Introduced by SBI in 2016 recruitment) with mock exercise
structured to reinforce the concepts in student’s mind with type of
questions that can be asked in the current scenario of bank recruitment.
This book was made possible with expertise of Adda247 team and
combined efforts of Gopal Anand, Prashant Pandey, Swati Gupta, Achal
Pratap Singh and Sakshi Singh.
In this edition there are tips, guidelines and study material to crack
Personal Interview and GD. The objective is to provide students with the
real experiences of candidates who appeared for various bank’s interview
process with solved examples of some popular questions asked very
frequently and mock exercise set to encourage them to be prepared to
face toughest situations with a proper strategy. The topics in this book
are included keeping in mind to equip candidates with basic knowledge
of what to expect in GD and PI round of bank recruitment process. Our

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ultimate aim was to help students develop de rigueur skills for success
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with proper approach.
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Some features associated with this book are:
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 Complete guidelines to crack Personal Interview and Group
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Discussion
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 Real Interview experiences of candidates are included
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 Tricky Interview Questions with their best answers
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 Dos and Don’ts for Interview
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 Banking Awareness for GD & PI with compete theory and banking
current affairs
 Mock Interview Questions and Exercises
 Current Affairs based GD Topics
 Group Exercise: Introduced in SBI PO 2016
We hope that our readers will appreciate our efforts and this book. Any
comments or suggestion for further improvements are welcome
wholeheartedly.
Team Adda247

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1. What is Interview?
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A job interview is a very important phase of any recruitment
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process where the interviewer conducts a face to face Q-A session
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to evaluate if the candidate is fit for the job. The interview is an
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occasion of interpersonal communication between the prospective
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employer and a prospective candidate. During this process, the
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employer hopes to determine whether or not the applicant is
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suitable for the job. A job interview typically precedes the hiring
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decision, and is used to evaluate the candidate. The interview is
usually preceded by the written examination and evaluation of
submitted documents from candidates who have cleared the
examination, then selecting a small number of candidates for
interviews.
Talking about interview process, first you should know why every
hiring process consists of an interview, what‟s the moto behind the
interview? So, through interview process they test you with many
parameters like one‟s mind set, clarity, confidence, ability, reaction
under pressured situation. There is no such set pattern of the
questions for interview, it‟s all in your hand how you drive your
interview and where to take it as they are going to pick questions
from your answers only so, answer wisely and be prepared for the
cross questions from your answers. Job Interview isn't just an
important aspect for the organisation but also for the candidate as
an interview also allows the candidate to assess the corporate
culture and demands of the job. Generally the Government Jobs
have got single round of interview which is conducted post written
exam.

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Interview questions are generally designed to tap applicant
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attributes that are specifically relevant to the job for which the
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person is applying. The job-relevant constructs that have been
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assessed in the interview can be classified into three categories:
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general traits, experiential factors, and core job elements. The first
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category refers to relatively stable applicant traits. The second
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category refers to job knowledge that the applicant has acquired
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over time. The third category refers to the knowledge, skills, and
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abilities associated with the job.
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JOB-RELEVANT CONSTRUCTS
General traits:
 Mental ability: Applicants‟ capacity to learn and process
information
 Personality: Conscientiousness, agreeableness, emotional
stability, extroversion, openness to new experiences
 Interest, goals, and values: Applicant motives, goals, and
person-organization fit
Experiential factors:
 Experience: Job-relevant knowledge derived from prior
experience
 Education: Job-relevant knowledge derived from prior
education
 Training: Job-relevant knowledge derived from prior
training
Core job elements:

 Declarative knowledge: Applicants‟ learned knowledge
 Procedural skills and abilities: Applicants‟ ability to
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complete the tasks required to do the job
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 Motivation: Applicants‟ willingness to exert the effort
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required to do the job
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2. What to expect in Banking Recruitment Interview?
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The flow and conduct of a Personal Interview process depends a lot
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on the interview panel. Yes, although the general guidelines for an
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interview are essentially the same but are to be moulded
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accordingly with the type of interview panel. Talking about
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banking recruitments; the interview panel consists of elderly and
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experienced banking professionals. The panel may comprise of 4-5
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experienced professionals. A clever candidate will comprehend the
nature of the elderly and act accordingly.
A candidate‟s confidence is reflected through his or her attire,

body language and speech. It is important that you should be
properly well dressed in formal attire, and avoid nervous reflexes.
Stay calm and be as normal as you can because the panel has years
of experience and they‟ll know and observes the changes and
patterns of your behaviour and body language. But here comes a
very important note, Over-Confident behaviour may ruin your
chances of selection. A candidate is expected to be humble and
respectful towards the elderly professionals and others you meet
in the premises. On an average personal interview process for
banking recruitment for a candidate can have duration of around
10-12 minutes. The more questions they'll form, higher is the
possibility for you to get tangled in their web of questions, but with
good self-confidence and composed self you can tackle this
situation. You need to be aware, and vigilant so that you can get
through this phase with flying colours. The marking for banking
recruitment interview is totally in hands of the interview panel and
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your minute ignorance can cost you those much needed marks.
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You do not have to worry much, be your true self and practice with
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mock interviews to become comfortable before facing the panel on
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the day of Personal Interview.
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What is your Role in Personal Interview?
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 Your role is basically to go out there and market yourself.
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You have to prove them that you are the person for the job.
But this does not mean that you go out and boast. Rather
you have to present your qualities in a way that they get a
glimpse into your persona through your eyes.
 Prepare well but speak in a limited way.
 Also never assume anything in advance, listen to the
interviewers carefully, trying to analyse the intention of
their question, and what is it that they want to hear.

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3. Essentials for Banking Recruitment Interview
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Interview Process is a very important phase for every Officer grade
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Banking Recruitment. The essentials for all Interview Processes
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weather it is SBI PO, IBPS PO, IPPB PO or IBPS RRB Officer are the
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same. At first there will be a process of Biometric verification
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followed by document verification. For document verification you
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must carry all your mark sheets from 10th till graduation or Post-
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graduation including your certificates. Do carry a set of
photocopies of all your important documents along with 5-6
photographs. Try to use the same photograph throughout the
recruitment process that you‟ve applied for your admit card/
during registration. Carefully read the instructions of your
Interview Call letter to know about all the documents that you‟ll
need to carry with yourself.
After Document Verification, you‟ll be asked to be seated in your

allotted panel‟s waiting room. Stay calm and patient during that
waiting time and then on your turn you‟ll be called by panel for
Personal Interview.
Introduction is the most important part of a Personal Interview,

and it is also something that you can actually prepare beforehand.
An Introduction may include greeting senior professionals
(interview panel), and confidently presenting yourself by
answering their initial questions about yourself, your family
background and your educational background. You must practice
to deliver a proper introduction keeping in mind that should not be
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too verbose and also equip yourself with proper general knowledge
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closely or distantly related to your background or qualifications, as
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they may put up questions from what you‟ll answer.
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Essentials
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Biometrics
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 Avoid any henna or tattoo on your hands as this may
hamper the biometric verification process.
Document Verification
 Carefully read the instruction of your interview call letter
and carry all requisite documents, mark sheets and
certificates.
 Do carry spare 4-5 photographs and a set of photocopy of
required documents.
 Try to make sure that the photograph that you‟ll use
throughout various phases of the recruitment is the same as
the one you‟ve used for Registration/ in Admit Card.
Attire and Body Posture

 Make sure to be in proper formal attire.
 Stay calm and confident and maintain proper body posture
while sitting, standing, walking and talking.
 Avoid showing any nervousness reflexes such as nail biting,
shivering, stammering, and trembling.

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Introduction
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 Prepare properly to introduce yourself and to answer
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questions related to your educational and family
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background.
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 The panel will have a set of photocopy of your documents,
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so they may put up questions from the same.
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 Be authentic and genuine, and equip yourself with general
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knowledge and awareness about your background and
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fields related to your educational qualification.
 Be ready to face the question- “why do you aspire for a
career in banking?” or “why haven‟t you started a career in
the stream/field of your education?” or “Don‟t you think
you are overqualified or you do not possess the required
education for this post?”

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4. How to introduce yourself in an interview?
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“First impression is the last impression”. Yes, first impressions do
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play a major role in how an interviewer perceives you as a
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candidate. What you say during the first phase of the interview can
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make a big difference in your final results, in a good way or in a
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bad way. Many of you must be wondering, what's the best way to
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introduce yourself to the interviewers at a job interview! So, for that
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purpose, here is a short description of how one needs to introduce
oneself during an interview.
 Your entrance
Turn off your cell phone before you enter the room where the
interview will take place. Enter the interview room with
enthusiasm and liveliness, both of which can help to mask your
nervousness. Do not be overconfident as it can have an adverse
effect on your interview. So, be confident and polite when you
get to meet the interviewers after you enter the room. Softly close
the door behind. Smile, make eye contact, and try to maintain an
open posture, line your shoulders up with the shoulders of the
interviewers.
 Body language
Be mindful of your body language. You want to project a
forward-looking and enthusiastic image. Sit up straight, lean
forward, don‟t cross your legs, don‟t fidget and try not to use too
many hand gestures. Much of what you communicate is through
body language, not words. And the point to be noted here is that
the people who you are going to face are elderly and experienced
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professionals and they all they expect of you is to be well
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dressed, civilized, sophisticated and elegant. Being over
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enthusiastic can be misjudged as being over confident or
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anything else that can prove to be negative for your final results.
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So, be careful of your body language when you meet them.
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 Greeting
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The first impression you make on interviewers will probably
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play an important part in their final decision. Unfortunately,
many job candidates do not prepare for this stage of the
interview or we can say this part is overlooked by most of the
candidates and the results may not be so favourable. So when
you enter the room, you get to see that you are going to be
interviewed by a panel of 4-6 interviewers. Greet them all very
politely, you can say „Good Morning‟ (Afternoon or Evening)
depending upon time of the day. As the number of interviewers
is more than one, address them as „Sirs/Madams‟ and try to
include them all in your greeting. If there is only one lady in the
panel, it is gracious to greet her separately. Wait for the
interviewers to ask you to sit. Do not sit unless you are asked
to.
 Say Thank you

After having your seat, it would be courteous to start the
conversation with a thank you by saying, “Thank you for providing
me the opportunity to introduce myself to you.” Or you can show the
interviewer your courteous nature by saying that you are
grateful to be shortlisted for the personal interview round.
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 Tell us something about yourself
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The interviewer‟s question, “Tell us something about yourself” does
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not mean that you will go right back to your childhood memories
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and start sharing tales of your good or bad experiences in life.
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Instead tell them about the awards, accolades and experiences
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that you have had in your life so far. Also share with them the
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themes, personality traits, and skills that come across through
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these experiences. Introspect which of these are the most
important to get across through the recruiters.
 Name
When asked to introduce yourself, make it a point to always state
your full name first. Say it with a smile and confidence as if it is
the most wonderful name you have ever heard. Avoid saying
“Myself Shreya Sharma” as it is grammatically incorrect, instead
simply say, “I am Shreya Sharma” or “My name is Shreya
Sharma”. You must know the meaning of your name and
mythological importance of your name. In fact, if the name of
any of your family members has a special connection, you must
know about that too. The interviewers may also crack jokes on
your name, so be careful to be courteous and not to reciprocate in
a similar way.
Interview Q-A
Q. What is the meaning of your name Karthik and Narayan?

Karthik is a month in the Hindu calendar which is in between
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the months of October and November. Karthik is also the
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name of one of Lord Shiva's (Mahadev) sons. And Narayan is
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one of the names of Lord Vishnu. Both of these are Gods
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worshiped in Hindu faith.
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Interview Q-A
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Q. How shall we address you? Pandey ya Pandey Ji (In a
funny way)?
Sir, you are free to call me by my last name, my friends also
prefer to call me by my last name only.
Q. Okay, we will call you Pandey Ji then.

Okay Sir.
 Place
Interviewers will have your details and questions related to facts
of the place you reside in are very common. Be prepared to face
questions such as, “What is your hometown famous for?” or
“Name a few famous personalities who were from your cities?”
They may also ask simple details such as “where is the nearest
branch of our bank from your residence?”
 Academics/Educational Qualifications
While introducing oneself to the interviewer, one of the most
important thing that needs to discussed is your educational
qualification. Tell the name of the institution that you have
passed on from. Disclose the percentage of marks only if you
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think you have scored fairly well or else you can talk of other
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achievements you have had in your life. Also prepare yourself to
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face a few questions on the course you have pursued and also the
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main stream/subject with which you graduated. Describe any
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type of work-related continuing education you‟ve completed. If
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you worked while you were taking classes, do share this thing
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with them as it shows you have the ability to multitask and that
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you're continually striving to improve your skills.
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Interview Q-A
Q. You are a mechanical engineer right? Okay what is the

difference between a two stroke and four stroke engines?
 Gap
A gap in employment or academic studies can be a spike in your
career profile. Learn to address the issue adeptly and wisely. Be
it a regular job, work from home, software designing or a
programming job, you were engaged while in gap. They just
need to know that you didn‟t sit idle while you were off from a
regular degree or job. It might be possible that your search for a
suitable job could have left you jobless. If such is your case then
just be honest and explain it to the interviewers that given the
recession, it was tough to find a job that would suit my set of
skills or interest.
Interview Q-A

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Q. You completed your engineering in 2014. What did you do
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after that?
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Sir I wanted to go to Canada for PGDM. I went for an IELTS
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Exam too but could not make through it because of financial
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problems my family was going through. I am preparing for
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bank examinations since then.
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 Why Banking ?
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Well, we have a lot of reasons of our own but in interview; the
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panel wants to hear the truth. They want to know what is forcing
you to switch to the banking sector rather than going into some
MNCs (Multi-National Companies). In fact, you may find an
engineer in the panel who may start asking technical questions.
So, you need to be truthful and practical at the same time in
order to answer this particular question. You need to add some
zing to your answers that will make you different from others.
Use the points given below to frame your answers:
1. Being a fresher and engineer at the same time, we have lesser

career options to get into. These days good companies are
recruiting through Employee Referrals and if you are lucky
enough to get one, then they offer very less to freshers which
may not be sufficient enough for a person to survive in a Metro
city.
2. I was an average student during engineering. Being from a non
IIT college, it is pretty hard to get into a good company. There are
some companies which provide jobs to fresher but they ask you
to work for BPO division and then after a year or two, you may
apply for internal positions in any other division.

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3. Banking is the only sector that has the fastest recruitment process
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and where freshers have an equal opportunity to grab the Social
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as well as the Financial status of an Bank Officer.
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 Details related to your previous job
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You may be asked about your experience at the previous job or
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the reason why you do not want to continue with it. The purpose
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of this question is to check your relationship and attitude with
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others. What in specific de-motivated you? Never speak anything
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negative or derogatory for your past employers or past superiors.
If your background was different from banking then you may
also be asked why you chose to leave that particular field. When
asked such a question, be careful not to say anything negative
about that particular field, try telling them about the positive
aspects of career in banking instead.
Interview Q-A
Q. So, you are a 2014 pass out, what were you doing since
then?
Ma‟am I joined Mphaisis as a Network Engineer and resigned
from there as I got placed in Cognizant as a Programmer
Analyst.
Q. Oh that‟s so great Nikhil! It is one of the world‟s biggest

multinational companies and you want to join Banking
sector, why? I know they do not pay freshers with a high
amount of salary but you can earn a lot after a certain period
of time. My daughter too is working with Cognizant.
Ma‟am I know it‟s a very good company and i joined private
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sector only because I didn‟t want to be financially dependent on
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my family. Since banking sector now days provides us with
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good salary and also a safe and secure future. So I am preparing
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for banking sector now.
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Q. Don‟t you sometimes think that you have made a big
or
mistake? You had a great job and you resigned just to prepare
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for a government job!
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 Strengths/Weaknesses
Do not forget to highlight your key strengths that go along with
the responsibility of the job role you are applying for. Don‟t just
pick any random strength that you have been told by most of the
people around you because if these strengths are not relevant to
the job role you applied for then they don‟t really matter to the
interviewer. Make sure that that for every strength shared by
you, you have a strong personal experience to share if further
asked by the interviewer.
Interview Q-A
Q. Okay, Manavalan. Please listen carefully to the question

and then answer. Please tell me 3 strengths of yours and 1
weakness. Also please tell your hobbies and about your
parents.
Okay, Ma‟am. To start off, I will tell you a weakness of mine.
I‟m very keen in taking responsibilities in my day to day life.
However, at times I fail to do complete justice to the
responsibilities which I think is a weakness of mine. The
positive thing is that I‟m working hard to overcome this
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weakness.
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Q. Hmm…and your strengths?
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If I need to list my strengths, I first thing on my list would be
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the communication skills. And the next one would be my
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handwriting.
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Q. Is that so? Let me see your handwriting. (She flipped the
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pages to find the declaration which I wrote). Yes, you‟re
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right. Such a good calligrapher you are. (She showed the
paper to other panellists as well and they also nodded with a
pleasant smile).
 Family
You may also be asked to tell them a few things about your
family members. To answer this question you should be
prepared with a short introduction of your family background,
this may include, your father, mother and siblings educational
qualification and work stream. You can you can also include
your upbringing and schooling background. They may put up
questions from your answers about your family members too.
Interview Q-A
Q. Where your father is working currently?

Sir, my father is working in the Indian Railways Department
in Siliguri, West Bengal. And Siliguri is near Darjeeling which
is a famous tourist destination and it is also famous for its tea
gardens.

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Q. Who is the present MP of Darjeeling?
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Interview Q-A
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Q. Tell us about your father‟s occupation.
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Sir, my father is an Ex-Serviceman and he is currently
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working with Delhi Metro Rail Corporation Limited as
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Assistant Signal and Telecom Engineer.
Q. That‟s impressing. So, who is the chairman of DMRC?

 Hobbies
Do mention the extracurricular activities you have been a part of
during your overall academic life. Learn to phrase your
experiences in a unique manner. Doing things besides working
shows that you're a well rounded person, and your hobbies and
personal interests give the interviewer an insight into the type of
person you are. Always keep it in mind that you have a strong
answers related to your hobby if further asked by the
interviewer.
Interview Q-A
Q. Alright. What are your hobbies?

I play and watch both cricket and football. I‟m also a
recreational swimmer.
Q. So you play football. Who is your favourite footballer?

Cristiano Ronaldo.
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Q. And why not Messi?
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Sir, in my personal opinion Ronaldo is adaptive to every
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playing conditions and he has proven that. But Messi could
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not prove himself when he played for Argentina. This is my
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personal view and it has nothing to do with the actual
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statistics.
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 Concluding your Introduction
Don‟t just abruptly stop talking with an ambiguous pause after
you are finished introducing yourself to the interviewer. You can
conclude by saying, “Well, that was a brief introduction of my
journey so far.” Have a smile on your face when you say it.

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5. Formal Attire
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Your attire and clothing choices matters a lot as they form your first
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impression upon the interviewer. Keep your attire completely
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formal and avoid any fashionable or flashy clothing options. There
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is separate dress code of formal attire for men and women which
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they should follow. Attire is not just about your clothing but it is
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about your complete appearance from top to toe. You hairs, your
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nail and your shoes must be neat and clean.
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Attire for male candidates at a bank interview
 A two piece matched suit is the best and safest choice. However,
don‟t combine a suit jacket with pants that don‟t match.
 Avoid wearing a very costly suit to the interview, let it be decent
and nominal. Choose a solid or very subtle weave pattern or
plain. Black, Navy blue and dark grey are a good colour choice.
 If you can‟t afford a suit, it‟s OK to wear a light coloured full
shirt paired with dark trouser.
 If not wearing a Blazer, then stick to a full sleeves V-neck
sweater. Avoid half sleeve sweater, as it does not come under
formal attire.
 Pair the suit or shirt with a good tie – prefer it to be plain. Tie is a
must. Do not wear floral or ties with character prints.
 The belt should be dark in colour too. Avoid wearing any
material with a glossy finish to the interview.
 Wear dark socks with mid-calf length so that no skin is visible
even when you sit down.
 The candidate should wear black or brown coloured formal
shoes. Sport shoes to an interview are a big “NO”

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 Never try a new look before going to the interview. Take hair cut
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at least 3-5 days ago. Do not sport a beard for interview, it is
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advised that you shave and present yourself in a neat and formal
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look.
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 The male candidates should only wear the watch. If you have got
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pierced ear, remove the ring.
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Attire for female candidates at a bank interview
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 The female candidates can choose from trousers paired with
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shirts with a formal blazer or a sweater, sarees and salwar –
kameez.
 If you choose a trouser, it should be dark coloured paired with a
light colour formal shirt.
 Candidates wearing salwar-kameez should choose simple cotton
suit in light shade and if needed wear a formal full sleeves V-
neck sweater over it or a simple formal blazer. Keep in mind that
salwar-kameez should be paired with a dupatta pinned on one
side of your shoulder.
 The suit must be simple and not filled with too much embroidery
or other work same goes with a saree.
 Do not wear a party wear salwar suit or saree. If you choose to
wear a saree keep in mind the formal dress code. Choose a light
solid colour and pair it with a collared or V-Neck (not too deep
neck) and 3/4th sleeves blouse.
 Keep the make-up conservative. Use a little make-up just to give
a polished look. Avoid wearing dark colour lipstick or nail
colours. The nails must be clean and well groomed. If you are
wearing a nail colour it should be light in colour which is even
and applied on all the nails. Chapped nail polish looks bad. You
may choose not to weak any makeup at all; a simple and neat

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look is preferred. The hair must be neatly tied up. They should
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not bother you in the mid of the interview.
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 Trousers should be paired with dark colour formal shoes
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Females wearing saree or salwar kameez can wear flat or lightly
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heeled chappals. Avoid wearing high heels to the interview.
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 If you are carrying a purse it must be simple and small. Avoid
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carrying large bags. Don‟t use red, green, blue, yellow purses.
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Black and brown are the good choices.
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6. Body Language
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Body Language is also a very important thing that a candidate must
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work on while preparing for personal interview. Body Language is
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subject to a candidate‟s habits and confidence. There might be
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something or activities that you might tend to do unintentionally
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because your subconscious mind is used to them; such as nail
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biting, tipping toes, dragging your feet while walking, shivering
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feet or hands or scratching or pulling your fingers. All these are
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signs of nervousness and improper body language. You must also
be cautious of your body posture while walking, talking and
sitting.
1. Maintain good eye contact

The very first thing people will try to decide about you when they
meet you is if they can trust you, and maintaining good eye contact
is an effective way to convey you're trustworthy and truthful. This
does not mean that you have to stare at a person or interviewer as
staring is not a healthy eye contact.
2. Smile
Do not put up a crab face or a straight face in interview as it is rude
and might not please the interview panel. Smile is a humble gesture
of greeting, respect and positivity. Each time you make an eye
contact with the interviewer, remind yourself to smile a bit so you
don't look angry or with a frowned face.
3. Sit up straight
If you lounge back in your chair, recruiters interpret it as a sign of
your disinterest in the open position or that you're not taking the
interview seriously, neither of which is a good sign. So you must sit
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up straight in the correct posture. Do not slump over the chair,
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sitting straight shows your confidence, credibility, attentiveness
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and moreover respect towards senior officials of the interview
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panel.
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4. Keep your arms and legs uncrossed
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Crossing the arms across the chest is a classic gesture of
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defensiveness. This defensiveness can manifest as uneasiness,
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shyness or insecurity. Sit or stand straight but do not cross your
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arms and legs, stay confortable and attentive.
5. Do not stuff your fingers in your pocket or grip your fingers

tightly.
Both these actions are negative and you should avoid them. Putting
your hands in your pocket might be a sign or arrogance or that a
person is unsatisfied with his self-image. Gripping tightly or
scratching fingers is a sign or nervous behaviour which you should
avoid.
6. Nod occasionally to show your interest in the conversation

Nodding demonstrates your interest in the conversation and your
agreeability, and it also expresses that you understand what
someone is saying. You may also nod to show your interest in the
conversation or as an expression of paying attention to the
interviewer. Do not nod excessively, keep your behaviour and
expressions normal and subtle.
7. Be graceful
Sit and talk gracefully with the interview panel. During the
interview the interview might crack jokes or divert the interview to
a tense or a casual phase but you should not forget that they are
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doing this to evaluate your performance and how you go with the
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flow of the conversation, testing your psychology, behaviour,
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knowledge and wisdom. Be respectful to the interview panel and
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your body language should also reflect the same.
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8. Be careful while leaving the interview room
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You must be careful while entering and especially while leaving the
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interview room. Slightly open the door, and do not be too harsh;
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also do remember to close it rather than just leaving it like that. At
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the end greet the interview panel (you may say, „thank you mam
and thank you sirs‟); you may shake hands if the interviewer offers
you a handshake at last. Take a few steps backward, try to maintain
your eye contact with the interviewer with a slight and humble
smile and then smoothly turn backward and walk out of the room.

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7. General Knowledge for Banking Interview
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After introduction and general talks this is a very important part of
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an interview that you should prepare. General Knowledge is a vast
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horizon of current happenings and may also include general
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knowledge related to your hometown or any place you‟ve
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mentioned in your C.V. The interviewer may twist and turn your
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answers to formulate new questions. It is thus very important to be
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aware of everything you speak of and whatever you write in your
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bio-data.
Questions of an interviewer may start from being as simple as
“What is the meaning of your name?” then moving towards “Name
a famous personality from your hometown?”
Sample Interview Q-A
Go through the following Interview Q-A session of a candidate Karthik

Narayan Thakur who is from Madhubani, Bihar. Analyse how the
interview panel in most cases derive questions from one's own
answers.
Q. Let us start with the Introduction, Karthik tell us about

yourself.
(Prepare a brief introduction about yourself, answer to this
question may include you educational and family background,
your qualifications, interests and, hobbies etc. Prepare an intro
of 10-12 lines and, you can also include some important
experiences of your life. There is a fine line between a good
introduction and a not so good one. This is usually the most
important question as it will frame how rest of the interview
process will go.)
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Q. What is the meaning of your name Karthik and Narayan?
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Karthik is a month in the Hindu calendar which is in between
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the months of October and November. Karthik is also the name
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of one of Lord Shiva's (Mahadev) sons. And Narayan is one of
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the names of Lord Vishnu. Both of these are Gods worshiped in
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Hindu faith.
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Q. What are Badrinath and Kedarnath?
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Badrinath and Kedarnath both are Hindu pilgrimage sites
situated in Uttarakhand. In Badrinath, lord Vishnu is worshiped
and Lord Shiva is worshiped in Kedarnath. These pilgrimage
sites are among the 'Uttarakhand's Char Dham'.
Q. What do you know about Madhubani Painting?

Sir, Madhubani painting originated in a small village, known as
Maithili, of the Bihar state of India. Mithila painting, as a
domestic ritual activity, was unknown to the outside world until
the massive Bihar earthquake of 1934.
Q. Where is Mithalanchal situated at?

It is situated in northern side of Bihar State.
Q. How many districts are there in Mithila?

Sir, there are 10-12 districts in Mithila (due to disputed nature of
some districts.)
Q. Tell us about Pradhan Mantri Jan Dhan Yojna.

Pradhan Mantri Jan Dhan Yojna is a part of financial inclusion to
ensure access to financial services, namely, Banking/ Savings &
Deposit Accounts, Remittance, Credit, Insurance, Pension in an
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affordable manner. Account can be opened in any bank branch
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or Business Correspondent (Bank Mitr) outlet. PMJDY accounts
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are being opened with Zero balance.
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Q. Tell us about your Family Background.
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(To answer this question you should be prepared with a brief
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intro of your family background, this may include, your father,
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mother and siblings educational qualification and work stream.
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You can you can also include your upbringing and schooling
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background.)
Q. Where your father is working currently?

Sir, my father is working in the Indian Railways Department in
Siliguri, West Bengal. And Siliguri is near Darjeeling which is a
famous tourist destination and it is also famous for its tea
gardens.
Q. Who is the present MP of Darjeeling?

S. S. Ahluwalia is MP of Darjeeling
Q. So, you said you have an elder brother, where does he

work?
Sir, he works in Indian Overseas Bank as a Branch Manager.
Q. Okay, Who is the present Railway Minister and he is from

which constituency?
Suresh Prabhakar Prabhu is the present Railway Minister and he
is from Rajapur constituency of Maharashtra state.
Q. How many states were there in recently held Assembly

Election?
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Sir, there were 5 states in the recently held assembly elections,
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Uttar Pradesh, Uttarakhand, Goa, Punjab and, Manipur.
ah
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Q. Who is the Governor of Uttar Pradesh and who is CM of
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Manipur?
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Ram Naik is the Governor of U.P and Nongthombam Biren
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Singh is the Chief Minister of Manipur.
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Q. So you are from commerce background, are you well verse
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with the questions relate to banking and finance, will be you
be able to answer confidently if we ask questions relate to
schemes an finance?
Yes sir, sure, I will try my best to answer your questions.
Q. What is Voucher?
A voucher is an internal document describing and authorising
the payment of a liability to a supplier. It is most commonly
used in a manual payment system.
Q. What do you understand by a balance sheet of a Bank?

A balance sheet is a financial statement that lists all the bank's
assets and liabilities.
These were some questions frame from the answer of the
candidate himself. There are certain topics that you should be
prepared with. Following topics are important in the current
scenario.
Now from this sample interview you can see how important it is to
be aware of general knowledge related to your home town. And it
is not just about your home town the questions can also be framed
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from the places your siblings work at or reside in. Anything closely
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or remotely related is important. Yes, this sure is a vast horizon but
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you can cover it by improving your general knowledge about such
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things.
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In an interview the panel will have your C.V so they‟ll most likely
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start questioning you from what you‟ve mentioned in it. That
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includes everything, your educational background, where you
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from, what your parents and siblings do etc. They may also frame
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questions from what you‟ll answer. You can start practicing this
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with a simple exercise to improve your general knowledge about
such things. Write down the answers of the questions given in the
below exercise. Give it a thought, try to frame more such probable
questions and try to gather more knowledge related to such
subjects.
G.K. Exercise-1
Q. Name 5 famous things in your hometown.

Q. Who is the MLA from your constituency/district?
Q. What is the meaning of your name?
Q. Name 3 famous personalities who have the same surname
as yours.
Q. Who is the current CM of the state you are from and he/she
is from which constituency?
Q. Where do your parents work at?
Q. Who is the chairperson of the organisation where your
father works in?
Q. Name all the neighbouring states connected to your state.
Q. Who are their chief ministers?
Q. Where is the high court of your state and name its chief
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justice.
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Q. Which season is it name 3 crops of this season?
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Q. Do you have any sibling? Do they work, where?
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Q. What is the place known for/ what is the speciality of the
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place where your brother/sister resides?
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Q. Who is the chairperson of the organisation where your
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brother/sister works in?
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Q. What are your hobbies?
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Q. Can you name a famous person who specializes in the field
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of your hobby?
Q. Name the local/regional language of your state and a few
popular or regional festivals celebrated in your state.
Q. How many districts are there in your state?
Q. Name 4 cities and their specialities from your state.
Q. Tell us about your educational background.
Q. Name a few famous corporates in the field of your
education.
Q. Why have you chosen banking sector?
Many similar questions can be framed by the interviewer, but it is

important that you always stay updated and brush up your general
knowledge. The most effective tool to stay in touch of such things is
by increasing the knowledge of general awareness and current
affairs. You can read newspapers or current affairs on
currentaffairs.adda247.com to stay updated with the current
happenings of the world that are important from
recruitment/examination‟s point of view.
General Knowledge related to the Bank/Organisation

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It is important that you are well versed with the important facts
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and figures related to the bank/ organisation for which you are
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selected and are appearing for the interview. Try to gather as much
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information as you can, it good to be aware of the place you are
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willing to work at. In almost every job interview, expect the
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interviewer to test your knowledge about their organisation. This is
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to test your attentiveness and to know how serious you are about
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this job and their organisation. This also tests your dedication level
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for the same.
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Now comes a question that what all should you essentially prepare about
the bank/ organisation you are going to give interview in?
This is a no brainer, just start with the basics; you can visit the
bank‟s official website and gather all the important knowledge
you‟ll need for interview. Also keep in mind if the bank is in news
related to some topic, make sure you know in detail about the
same. If you are appearing for bank interview you must be able to
answer basic questions related to bank accounts, in which bank you
have an account, why have you chosen that bank, what are the
interest rates, digits of your account number, tagline, moto, logo the
bank etc. So gather information regarding such questions because
there is a high possibility for you to face such questions in the
interview
You can also try to practice with the following exercise. Frame
more such questions and gather as much information you can. It is
expected by the interviewer that all candidates are well prepared to
answer any question related to the organisation where they are
applying for a job.

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G.K. Exercise-2
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Q. Who is the chairperson for our bank/organisation?
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Q. Where is the headquarters of our organisation situated at?
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Q. How many branches do we have?
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Q. What is the tagline of our bank?
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Q. What do you know about banks mergers?
Q. Express your views regarding privatisation of banks in India.
Q. In which bank do you have an account?
Q. What type of account do you have and what are different
types of bank accounts?
Q. Where are the headquarters of that bank and who is the
chairperson?
Q. Why have you opened an account in that particular bank?
Q. How many digits are there in your bank account?
Q. What is IFSC Code, where your bank‟s nearest branch to
your residence is and what is its IFSC code?
Q. What is KYC?
Q. What is the tagline/moto of your bank?
Q. What is the logo of the bank you have an account in?
Q. Do you have any Fixed or Recurring deposits? What are the
current interest rates in your bank?
Q. Does you bank/ our bank was recently in news related to
any topic? If Yes, then elaborate.
Q. Have you taken education or any other type of loan? Or have
your parents taken any sort of loan?

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Q. What are different types of loan?
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Q. What is the interest rate of the loan you‟ve taken?
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Q. Does the bank you have an account in have any overseas
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branch? Does our bank have any overseas branch?
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Q. What are payment banks? Have you yet opened an account
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in any payment bank?
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Q. How many payment banks are there?
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These were just sample questions in an exercise. You can learn
more through forming such questions and brushing your
knowledge in banking and financial awareness. It does not matter
from what education background you are from, if you are
appearing for a bank interview these are the basics that you should
know, and the interview panel will expect you to come prepared
with banking and financial awareness. You can study about the
same on www.bankersadda.com

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8. Banking Awareness for Bank Interview
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Part 1: Banking Awareness (Theory)
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Topic 1: RESERVE BANK OF INDIA (RBI) & ITS FUNCTIONS
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RBI established on April 1, 1935 under RBI Act 1934
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(recommendations of John Hilton Young Commission 1926 –
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called Royal Commission on Indian Currency & Finance), is the
central bank of the country & was nationalised w.e.f. Jan
01,1949.
Originally it was a shareholders‟ bank which was taken over by
the Central Govt. under Reserve Bank (Transfer of Public
Ownership) Act 1948 (paid up capital Rs. 5 cr).
RBI‟s central office is in Mumbai.
RBI is not expected to perform the function of accepting
deposits from the general public.
RBI has its headquarters at Mumbai.
Prime lending rate is decided by the individual banks.
RBI decides the following rates namely; Bank rate, repo rate,
reverse repo rate & cash reserve ratio.
The quantitative instruments of RBI are – bank rate policy, cash
reserve ratio & statutory liquidity ratio.
The objective of monetary policy of RBI is to control inflation;
discourage hoarding of commodities & encourage flow of credit
into neglected sector.
When RBI is lender of the last resort, it means that RBI advances
credit against eligible securities.
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Government of India decides the quantity of coins to be minted.
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The method which is used currently in India to issue currency
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note – minimum reserve system. For issuing notes, RBI is
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required to hold the minimum reserves of Rs. 200 crore of
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which note less than Rs. 115 crore is to be held in gold.
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Topic 2: FUNCTIONS OF RBI
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Currency System In India
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Along with Government of India, RBI is responsible for the
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design, production and overall management of the nation‟s
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currency, with the goal of ensuring an adequate supply of clean
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and genuine notes.
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The Government of India is the issuing authority of coins and
supplies coins to the Reserve Bank on demand. The Reserve
Bank puts the coins into circulation on behalf of the Central
Government.
The Department of Currency Management at Central Office,
Mumbai, in cooperation with the Issue Departments of the
Reserve Bank‟s Regional Offices across India oversees currency
management.
The function includes supplying and distributing adequate
quantity of currency throughout the country and ensuring the
quality of banknotes in circulation by continuous supply of
clean notes and timely withdrawal of soiled notes.
Currency chests are extended arms of the Reserve Bank Issue
Departments and are responsible for meeting the currency
requirements of their respective regions.
Tools used in Currency Management

Four printing presses print and supply banknotes. These are at
Dewas in Madhya Pradesh, Nasik in Maharashtra, Mysore in
Karnataka, and Salboni in West Bengal.
The presses in Madhya Pradesh and Maharashtra are owned by
the Security Printing and Minting Corporation of India
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(SPMCIL), a wholly owned company of the Government of
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India. The presses in Karnataka and West Bengal are owned by
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the Bharatiya Reserve Bank Note Mudran Private Limited
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(BRBNMPL), a wholly owned subsidiary of the Reserve Bank.
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Coins are minted by the Government of India. Reserve Bank is
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the agent of the Government for distribution, issue and
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handling of coins. Four mints are in operation: Mumbai in
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Maharashtra, Noida in Uttar Pradesh, Kolkata, and Hyderabad.
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RBI‟s Clean Note Policy
Education campaign on preferred way to handle notes: no stapling,
writing, excessive folding etc.
Timely removal of soiled notes: use of currency verification and
processing systems and sorting machines
Exchange facility for torn, mutilated or defective notes: at all
branches of commercial banks.
As per the Indian Coinage Act:

(a) a coin of any denomination not lower than one rupee, for any
sum not exceeding one thousand rupees;
(b) a half-rupee coin, for any sum not exceeding ten rupees;
(c) any other coin, for any sum not exceeding one rupee:
Note: Provided that the coin has not been defaced and has not lost
weight so as to be less than such weight as may be prescribed in its
case.
Denominations of coins and notes in circulation

Coins in circulation: 50 paise, 1, 2, 5 and 10 Rupee

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Coins in India
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Coins: The Government of India has the sole right to mint
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coins. The designing and minting of coins in various
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denominations is also the responsibility of the Government of
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India. Coins are minted at the four India Government Mints at
Mumbai, Alipore (Kolkata), Saifabad (Hyderabad), Cherlapally
(Hyderabad) and NOIDA (UP).
Denominations: Coins in India are presently being issued in
denominations of one rupee, two rupees, five rupees and ten
rupees.
Note: Coins can be issued up to the denomination of Rs.1000 as per
the Coinage Act, 1906.
Types of Bank Notes in India

Contemporary Currency notes have 15 languages on the panel
which appear on the reverse of the note.
Soiled Notes: Soiled notes are those which have become dirty
and slightly cut. Notes which have numbers on two ends, i.e.
notes in the denomination of Rs.10 and above which are in two
pieces, are also treated as soiled note. The cut in such notes,
should, however, not have passed through the number panels.
Mutilated Notes: Notes which are in pieces and/or of which
the essential portions are missing can also be exchanged.
Essential portions in a currency note are name of issuing
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authority, guarantee, promise clause, signature, Ashoka Pillar
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emblem/portrait of Mahatma Gandhi, water mark.
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Imperfect banknotes: Imperfect banknote means any banknote,
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which is wholly or partially, obliterated, shrunk, washed,
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altered or indecipherable but does not include a mutilated
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banknote.
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Notes in circulation: Rs. 5, 10, 20, 50,100, 500 and 2000
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Currency Features of Rs.500 & Rs. 2000 Notes
Rs500 Note
The new Rs500 notes in the Mahatma Gandhi (New) Series are
different from the previous series in colour, size, theme, location of
security features and design elements. The size of the new note
is 66mm x 150mm. The colour of the notes is stone grey and the
predominant new theme is Indian heritage site - Red Fort.
Denomination numeral is in Devnagari. Guarantee clause,
Governor's signature, RBI emblem shifted towards right. Ashoka
pillar emblem is on right. 15 languages are written on the reverse
side of Note. For visually impaired, Circle with Rs. 500 in raised
print on the right and Bleed lines on left and right in raised
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print. Swachh Bharat logo with slogan is on the reverse side of the
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Note.
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Rs2000 Note
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The Reserve Bank of India has introduced new design banknotes in
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the denomination of Rs2000 as part of Mahatma Gandhi (New)
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Series. The size of the new note is 66mm x 166mm. The new
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denomination has motif of the Mangalyaan on the reverse,
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depicting the country's first venture in interplanetary space. The
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base colour of the note is magenta. The note has other designs,
geometric patterns aligning with the overall colour scheme, both on
the obverse and the reverse. Denomination numeral is in
Devnagari. For visually impaired, Rectangle with Rs.2,000 in raised
print on right and Seven angular bleed lines in raised print. Swachh
Bharat logo with slogan is on the reverse side of the Note.
RBI Regulating Commercial Banking
The central bank has a critical role to play in ensuring the safety
and soundness of the banking system-and in maintaining financial
stability and public confidence in this system.
Mandate /Goals: Regulation aimed at protecting depositors‟
interests, orderly development and conduct of banking operations
and fostering of the overall health of the banking system and
financial stability.
Perimeter: Commercial banks, All India Financial Institutions,
Credit Information Companies, Regional Rural Banks and Local
Area Banks.

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Evolution: Regulatory functions have evolved with the
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development of the Indian banking system and adoption of
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prudential norms based on international best practices.
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Tools of Regulation
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The tools used for regulation are statutory, prudential regulation,
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other regulatory guidelines and moral suasion through speeches of
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Governor, Deputy Governors and periodic meetings, seminars, etc.
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Policy Framework
Focal points for providing framework for regulation:
Issuance of „licences‟ for opening of banks
„Authorisations‟ for opening of branches by banks in India,
governing foreign banks entry and expansion and approval of
Indian banks to operate overseas,
policy formulation, review and implementation on Prudential
Norms, Basel – II and III frameworks, validation of quantitative
models on Credit, Market and Operational Risks, Stress testing,
International Financial Reporting Standards (IFRS),
Securitisation, Resolution mechanism, etc.
Monitoring maintenance of SLR and CRR by banks,
approving appointments of chief executive officers (private
sector and foreign banks) and their compensation packages,
overseeing the amalgamation, reconstruction, and liquidation of
banking companies,
policy issues relating to customer service,
Anti-Money Laundering and Combating Financing of Terrorism
and issuing of instructions regarding KYC regulation of
financial institutions

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RBI's regulating Co-operative Banking
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This includes ensuring credit availability to the productive
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sectors of the economy, establishing institutions designed to
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build the country's financial infrastructure, expanding access to
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affordable financial services and promoting financial education
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and literacy.
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The rural co-operative credit system in India is primarily
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mandated to ensure flow of credit to the agriculture sector. It
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comprises short-term and long-term co-operative credit
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structures. The short-term co-operative credit structure operates
with a three-tier system - Primary Agricultural Credit Societies
(PACS) at the village level, Central Cooperative Banks (CCBs) at
the district level and State Cooperative Banks (StCBs) at the
State level. PACS are outside the purview of the Banking
Regulation Act, 1949 and hence not regulated by the Reserve
Bank of India. StCBs/DCCBs are registered under the
provisions of State Cooperative Societies Act of the State
concerned and are regulated by the Reserve Bank. Powers have
been delegated to National Bank for Agricultural and Rural
Development (NABARD) under Sec 35 A of the Banking
Regulation Act to conduct inspection of State and Central
Cooperative Banks.
Primary Cooperative Banks (PCBs), also referred to as Urban
Cooperative Banks (UCBs), cater to the financial needs of
customers in urban and semi-urban areas. UCBs are primarily
registered as cooperative societies under the provisions of either
the State Cooperative Societies Act of the State concerned or the
Multi State Cooperative Societies Act, 2002 if the area of
operation of the bank extends beyond the boundaries of one
state. The sector is heterogeneous in character with uneven
geographic spread of the banks. While many of them are unit
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banks without any branch network, some of them are large in
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size and operate in more than one state.
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Reserve Bank regulates the banking functions of
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StCBs/DCCBs/UCBs under the provisions of Sections 22 and 23
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of the Banking Regulation Act, 1949 (As Applicable to
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Cooperative Societies (AACS).
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Banker & Debt Manager to the Government
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Managing the government's banking transactions is a key RBI
role. Reserve Bank of India has undertaken the traditional
central banking function of managing the government‟s
banking transactions. The Reserve Bank of India Act, 1934
requires the Central Government to entrust the Reserve Bank
with all its money, remittance, exchange and banking
transactions in India and the management of its public debt. The
Government also deposits its cash balances with the Reserve
Bank.
RBI by agreement, act as the banker and debt manager to State
Governments. Currently, the Reserve Bank acts as banker to all
the State Governments in India (including Union Territory of
Puducherry), except Sikkim. For Sikkim, it has limited
agreement for management of its public debt.
As a banker to the Government, RBI receives and pays money
on behalf of the various Government departments. It also
undertakes to float loans and manage them on behalf of the
Governments.
It provides Ways and Means Advances – a short-term interest
bearing advance – to the Governments, to meet temporary
mismatches in their receipts and payments. Besides, like a
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portfolio manager, it also arranges for investments of surplus
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cash balances of the Governments.
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It acts as adviser to Government, whenever called upon to do
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so, on monetary and banking related matters.
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Under the administrative arrangements, the Central
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Government is required to maintain a minimum cash balance
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with the Reserve Bank. Currently, this amount is Rs.10 crore on
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a daily basis and Rs.100 crore on Fridays, as also at the annual
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account closing day of the Centre and the Reserve Bank (end of
March and June).
All the State Governments are required to maintain a minimum
balance with the Reserve Bank, which varies from state to state
depending on the relative size of the state budget and economic
activity. To tide over temporary mismatches in the cash flow of
receipts and payments, the Reserve Bank provides Ways and
Means Advances/Overdraft to the State Governments. The
WMA scheme for the State Governments has provision for
Special Drawing Facility (SDF) and Normal WMA. A State
Government account can be in overdraft for a maximum 14
consecutive working days with a limit of 36 days in a quarter.
Banker to Banks
Banks need their own mechanism to transfer funds and settle

inter-bank transaction-such as borrowing from and lending to
other banks-and customer transactions. RBI fulfills the role of
banker's bank.

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Banks are required to maintain a portion of their demand and
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time liabilities as cash reserves with the Reserve Bank. For this
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purpose, they need to maintain accounts with the Reserve Bank.
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In order to facilitate a smooth inter-bank transfer of funds, or to
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make payments and to receive funds on their behalf, banks need
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a common banker. By providing the facility of opening accounts
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for banks, the Reserve Bank becomes this common banker,
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known as „Banker to Banks‟ function. The function is performed
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through the Deposit Accounts Department (DAD) at the
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Reserve Bank‟s Regional offices.
RBI monitors operations of these accounts to ensure that
defaults do not take place. It also facilitates remittance of funds
from a bank‟s surplus account at one location to its deficit
account at another. Such transfers are electronically routed
through a computerised system called e-Kuber.
RBI also introduced the Centralised Funds Management System
(CFMS) to facilitate centralised funds enquiry and transfer of
funds across DADs. This helps banks in their fund management
as they can access information on their balances maintained
across different DADs from a single location.
As Banker to Banks, it provides short-term loans and advances
to select banks, when necessary, to facilitate lending to specific
sectors and for specific purposes. These loans are provided
against promissory notes and other collateral given by the
banks.
As a Banker to Banks, the Reserve Bank also acts as the „lender
of the last resort‟. It can come to the rescue of a bank that is
solvent but faces temporary liquidity problems by supplying it
with much needed liquidity when no one else is willing to
extend credit to that bank. The Reserve Bank extends this
facility to protect the interest of the depositors of the bank and
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to prevent possible failure of the bank, which in turn may also
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affect other banks and institutions and can have an adverse
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impact on financial stability and thus on the economy.
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A Brief on Foreign Exchange Management
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The comprehensive Foreign Exchange Regulation Act, 1973
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empowered the Reserve Bank, and in certain cases the Central
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Government, to control and regulate dealings in foreign
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exchange payments outside India, export and import of
currency notes and bullion, transfer of securities between
residents and non-residents, acquisition of foreign securities,
and acquisition of immovable property in and outside India,
among other transactions.
Extensive relaxations in the rules governing foreign exchange
were initiated, prompted by the liberalisation measures
introduced since 1991 and the Act was amended as a new
Foreign Exchange Regulation (Amendment) Act 1993. Keeping
in view the changed environment, the Foreign Exchange
Management Act (FEMA) was enacted in 1999 to replace FERA.
FEMA became effective from June 1, 2000.
The Reserve Bank issues licences to banks and other institutions
to act as Authorised Dealers in the foreign exchange market.
The Reserve Bank of India, is the custodian of the country‟s
foreign exchange reserves and is vested with the responsibility
of managing their investment. The legal provisions governing
management of foreign exchange reserves are laid down in the
Reserve Bank of India Act, 1934.The basic parameters of the
Reserve Bank‟s policies for foreign exchange reserves
management are safety, liquidity and returns.

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RBI‟s Monetary Policy
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What is Monetary Policy?
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Monetary policy refers to the policy of the central bank with regard
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to the use of monetary instruments under its control to achieve the
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goals specified in the Act. Reserve Bank of India (RBI) is vested
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with the responsibility of conducting monetary policy. This
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responsibility is explicitly mandated under the Reserve Bank of
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India Act, 1934.
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Objective of Monetary Policy
The primary objective is to maintain price stability while
keeping in mind the objective of growth. In May 2016, RBI Act,
1934 was amended to provide a statutory basis for the
implementation of the flexible inflation targeting framework.
The amended RBI Act also provides for the inflation target to be
set by the Government of India, in consultation with the
Reserve Bank, once in every five years. Accordingly, the Central
Government has notified in the Official Gazette 4 per cent
Consumer Price Index (CPI) inflation as the target for the period
from August 5, 2016 to March 31, 2021 with the upper tolerance
limit of 6 per cent and the lower tolerance limit of 2 per cent.
The monetary policy framework aims at setting the policy
(repo) rate based on an assessment of the current and evolving
macroeconomic situation; and modulation of liquidity
conditions to anchor money market rates at or around the repo
rate.
What is MPC?
Section 45ZB of the amended RBI Act, 1934 provides for an
empowered six-member monetary policy committee (MPC) to be
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constituted by the Central Government. The Members of the
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current MPC are as follows:
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1. Governor of RBI – Chairperson, ex officio;
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2. Deputy Governor of RBI, in charge of Monetary Policy –
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Member, ex officio;
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3. One officer of RBI to be nominated by the Central Board –
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Member, ex officio;
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4. Shri Chetan Ghate, Professor, Indian Statistical Institute (ISI) –
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Member;
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5. Professor Pami Dua, Director, Delhi School of Economics –
Member; and
6. Dr. Ravindra H. Dholakia, Professor, Indian Institute of
Management, Ahmedabad – Member.
(Members referred to at 4 to 6 above, will hold office for a period of
four years or until further orders, whichever is earlier.)
The MPC determines the policy interest rate required to achieve the
inflation target. RBI's Monetary Policy Department (MPD) assists
the MPC in formulating the monetary policy. Financial Markets
Operations Department (FMOD) operationalises the monetary
policy, mainly through day-to-day liquidity management
operations.
Instruments of Monetary Policy
Repo Rate: The (fixed) interest rate at which the Reserve Bank
provides overnight liquidity to banks against the collateral of
government and other approved securities under the liquidity
adjustment facility (LAF).
Reverse Repo Rate: The (fixed) interest rate – currently 50 bps

below the repo rate – at which the Reserve Bank absorbs liquidity,
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on an overnight basis, from banks against the collateral of eligible
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government securities under the LAF.
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The LAF consists of overnight as well as term repo auctions. The
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aim of term repo is to help develop the inter-bank term money
or
market, which in turn can set market based benchmarks for pricing
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of loans and deposits, and hence improve transmission of monetary
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policy.
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Marginal Standing Facility (MSF): A facility under which
scheduled commercial banks can borrow additional amount of
overnight money from the Reserve Bank by dipping into their
Statutory Liquidity Ratio (SLR) portfolio up to a limit [currently
two per cent of their net demand and time liabilities deposits
(NDTL)] at a penal rate of interest, currently 50 basis points above
the repo rate. This provides a safety valve against unanticipated
liquidity shocks to the banking system.
Bank Rate: It is the rate at which the Reserve Bank is ready to buy
or rediscount bills of exchange or other commercial papers. The
Bank Rate is published under Section 49 of the Reserve Bank of
India Act, 1934. 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.
Cash Reserve Ratio (CRR): The average daily balance that a bank
shall maintain with the Reserve Bank as a share of such per cent of
its NDTL that the Reserve Bank may notify from time to time in the
Gazette of India.

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Statutory Liquidity Ratio (SLR): The share of NDTL that banks
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shall maintain in safe and liquid assets, such as, unencumbered
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government securities, cash and gold. Changes in SLR often
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influence the availability of resources in the banking system for
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lending to the private sector.
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Open Market Operations (OMOs): These include both outright
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purchase and sale of government securities for injection and
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absorption of durable liquidity, respectively.
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Market Stabilisation Scheme (MSS): This instrument for monetary
management was introduced in 2004. Surplus liquidity of a more
enduring nature arising from large capital inflows is absorbed
through sale of short-dated government securities and treasury
bills. The cash so mobilised is held in a separate government
account with the Reserve Bank.
Other Points to look at

Under the amended RBI Act, the monetary policy making is as
under:
a) The MPC is required to meet at least four times in a year.
b) The quorum for the meeting of the MPC is four members.
c) Each member of the MPC has one vote, and in the event of an
equality of votes, the Governor has a second or casting vote.
d) Once in every six months, the Reserve Bank is required to
publish a document called the Monetary Policy Report to explain:
i. the sources of inflation; and
ii. the forecast of inflation for 6-18 months ahead.

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Topic 3: FISCAL POLICY
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Fiscal policy deals with the government policy concerning changes
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in the taxation and expenditure overheads and components, while
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Monetary policy, deals with the changes in the factors and
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instruments that affect the supply of money in the economy and the
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rate of interest. The government of India deals with fiscal policy
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(through Annual Budget and other timely interventions), while RBI
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is responsible for execution of monetary policy.
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Types of Fiscal Policy
Neutral Fiscal Policy: This implies a balanced budget where
(Government spending = Tax revenue).
Contractionary (restrictive) Fiscal policy: This policy involves
raising taxes or cutting government spending, so that (Government
spending < Tax revenue) it cuts up on the aggregate demand (thus,
economic growth) and to reduce the inflationary pressures.
Expansionary Fiscal Policy: It is generally used for giving stimulus
to the economy ,i.e., to speed up the rate of GDP growth or during
a recession when growth in national income is not sufficient
enough to maintain the present standards of living. A tax cut
and/or an increase in government spending would be
implemented to stimulate economic growth and lower
unemployment rates.
Instruments of Fiscal Policy

Reduction of Govt. Expenditure
Increase in Taxation
Imposition of new Taxes
Wage Control
Rationing
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Public Debt
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Increase in savings
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Maintaining Surplus Budget
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Other measures of Fiscal Policy
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Increase in Imports of Raw materials
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Decrease in Exports
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Increase in Productivity
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Provision of Subsidies
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Use of Latest Technology
Rational Industrial Policy
PUBLIC REVENUES
The income of the Government through all sources is called public
income or public revenue. Public revenue refers to income of a
Government from all sources raised, in order to meet public
expenditure. Public revenue consists of taxes, revenue from
administrative activities like fines, fees, income from public
enterprises, gifts and grants. Public Receipts includes public
revenue plus the receipts from public borrowings, the receipts from
sale of public assets & printing & issuing new currency notes. It
includes other sources of public income along with public revenue.
Public Revenue can be classified as Tax Revenue and Non -Tax
Revenue.
PUBLIC EXPENDITURE
Public Expenditure refers to Government Expenditure. It is
incurred by Central and State Governments. The Public
Expenditure is incurred on various activities for the welfare of the
people and also for the economic development.

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Capital and Revenue Expenditure:
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Capital Expenditure of the Government refers to that expenditure
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which results in creation of fixed assets. They are in the form of
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investment. They add to the net productive assets of the economy.
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Capital Expenditure is also known as development expenditure as
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it increases the productive capacity of the economy. It is investment
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expenditure and a non-recurring type of expenditure.
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Revenue expenditures are current or consumption expenditures
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incurred on civil administration, defense forces, public health and,
education, maintenance of Government machinery etc. This type of
"expenditure is of recurrent type which is incurred year after year.
Plan and Non - Plan Expenditure

The plan expenditure is incurred on development activities
outlined in ongoing five year plan. Plan expenditure is incurred on
Transport, rural development, communication, agriculture, energy,
social services,etc. The non - plan expenditure is incurred on those
activities, which are not included in five-year plan.
PUBLIC DEBT
Public debt refers to Government debt. It refers to Government
borrowings from individuals, financial institutions,
organizations and foreign countries. If revenue collected
through taxes and other sources is not adequate to cover
expenditure, the Government may resort to borrowings. Thus
public debt is one of the instruments to cover deficits in budget.

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Topic 4: SCHEDULED BANK & BANK ACCOUNTS IN INDIA
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ah
a) As per Sec 2 (e) of RBI Act, a scheduled bank means a bank
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whose name is included in the 2nd schedule of RBI Act 1934.
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b) A scheduled bank should satisfy the conditions which include
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paid-up capital&reserves requirement of not less than Rs. 5 lac,
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satisfaction of RBI that the affairs will not be conducted by the bank
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in a way to jeopardize the interests of the depositor. (Commercial,
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Rural&many State Coop Banks are classified as Scheduled Banks).
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c) A bank that is not included in the 2nd Schedule of RBI is called
Non-scheduled Bank.
Types of Bank Accounts in India (Deposit Accounts)
Traditionally banks in India have four types of deposit accounts,

namely Saving Banking Accounts, Current Accounts, Recurring
Deposits and, Fixed Deposits.
Saving Account
Saving accounts are opened to encourage the people to save
money and collect their savings. The saving account holder is
allowed to withdraw money from the account as and when
required. The interest on Saving Bank Accounts was fixed by RBI
and it was fixed at 4.00% on daily balance basis. RBI has
deregulated Saving Fund account interest rates and now banks
are free to decide the same within certain conditions imposed by
RBI.
Features of Saving Accounts –
There is no restriction on the number and amount of deposits.
However, in India, mandatory PAN (Permanent Account

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Number) details are required to be furnished for doing cash
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transactions exceeding र50,000.
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Withdrawals are allowed subject to certain restrictions.
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A minimum amount has to be kept on saving account to keep it
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functioning.
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Current Account
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Current Accounts are basically meant for businessmen and are
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never used for the purpose of investment or savings.
Features of Current Accounts –
The main objective of Current Account holders in opening these
account is to enable them (mostly businessmen) to conduct their
business transactions smoothly.
There are no restrictions on the number of times deposit in cash /
cheque can be made or the amount of such deposits;
Usually banks do not pay any interest on such current accounts.
The current accounts do not have any fixed maturity as these are
on continuous basis accounts.
Cheque book facility is provided and the account holder can
deposit all types of the cheques and drafts in their name or
endorsed in their favour by third parties.
Recurring Deposit Account

Recurring Deposit is a special kind of Term Deposit offered by
banks in India popularly known as RD accounts 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.
Features of RD Accounts –

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Recurring Deposit accounts are normally allowed for maturities
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ranging from 6 months to 120 months
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These accounts can be opened in single or joint names.
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Nomination facility is also available.
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Rate of Interest offered is similar to that in Fixed Deposits.
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Interest is compounded on quarterly basis in recurring deposits.
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Fixed Deposit Account (FD)
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The account which is opened for a particular fixed period (time) by
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depositing particular amount (money) is known as Fixed (Term)
Deposit Account. The term 'fixed deposit' means that the deposit is
fixed and is repayable only after a specific period is over. Under
fixed deposit account, money is deposited for a fixed period say six
months, one year, five years or maximum ten years. The money
deposited in this account can not be withdrawn before the expiry of
period.
Features of FD Accounts –
The main purpose of fixed deposit account is to enable the
individuals to earn a higher rate of interest on their surplus funds
(extra money).
The amount can be deposited only once. For further such
deposits, separate accounts need to be opened.
Fixed Deposit Account may be opened for a minimum period
of 7 days and maximum period of 10 years.
The minimum amount required to open a Fixed Deposit is
Rs.1000.
Withdrawals are not allowed. However, in case of emergency,
banks allow to close the fixed account prior to maturity date. In
such cases, the bank deducts 1% (deduction percentage many
vary) from the interest payable as on that date.

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Topic 5: FINANCIAL INCLUSION
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ah
Financial inclusion involves
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1) Give formal banking services to poor people in urban & rural
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areas.
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2) Promote habit of money-savings, insurance, pension-investment
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among poor-people.
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3) Help them get loans at reasonable rates from normal banks. So
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they don‟t become victims in the hands of local moneylender.
Some Important initiatives for Financial Inclusion

Lead banking scheme (LBS).
No frills account.
BSBDA
Business Correspondents (BC) system.
Swabhiman Campaign
PMJDY
Lead Bank Scheme

The Lead Bank Scheme, introduced towards the end of 1969,
envisages assignment of lead roles to individual banks (both in
public sector & private sector) for the districts allotted to them.
A bank having a relatively large network of branches in the
rural areas of a given district& endowed with adequate
financial & manpower resources has generally been entrusted
with the lead responsibility for that district. Accordingly, all the
districts in the country have been allotted to various banks.

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The lead bank acts as a leader for coordinating the efforts of all
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credit institutions in the allotted districts.
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No Frill Account
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'No Frills 'account is a basic banking account. Such account
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requires either nil minimum balance or very low minimum
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balance. Charges applicable to such accounts are low.
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The RBI in 2005-06 called upon Indian banks to design a „no
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frills account‟ – a no precondition, low „minimum balance
maintenance‟ account with simplified KYC (Know Your
Customer) norms.
But all the existing „No-frills‟ accounts opened were converted
into BSBDA in compliance with the guidelines issued by RBI in
2012.
BSBDA
In 2012, RBI introduced BSBDA. Some important points are:
This account shall not have the requirement of any minimum
balance.
The services available in the account will include: deposit &
withdrawal of cash at bank branch as well as ATMs;
receipt/credit of money through electronic payment channels or
by means of deposit/collection of cheques drawn by
Central/State Government agencies & departments;
While there will be no limit on the number of deposits that can
be made in a month, account holders will be allowed a
maximum of four withdrawals in a month, including ATM
withdrawals.
Facility of ATM card or ATM-cum-Debit Card.
Business Correspondent
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Business correspondents are bank representatives. They
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personally go to the area allotted to them & carry out banking.
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They help villagers to open bank accounts, in banking
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transactions etc.
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Business Correspondents get commission from bank for every
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new account opened, every transaction made via them, every
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loan-application processed etc.
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A Brief on BSBDA-Small Accounts:
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In BSBDA, banks are required to provide free of charge
minimum 4 withdrawals, through ATMs
Total credits in such accounts should not exceed 1 lakh rupees
in a year.
Maximum balance in the account should not exceed 50,000 Rs
at any time
The total of debits by way of cash withdrawals and transfers
will not exceed 10,000 rupees in a month
Foreign remittances cannot be credited to Small Accounts
without completing normal KYC formalities
Small accounts are valid for a period of 12 months initially
which may be extended by another 12 months if the person
provides proof of having applied for an Officially Valid
Document.
PMJDY: Scheme and Current Status
Pradhan Mantri Jan-Dhan Yojana (PMJDY) is National Mission for

Financial Inclusion to ensure access to financial services, namely,
Banking/ Savings & Deposit Accounts, Remittance, Credit,
Insurance, Pension in an affordable manner. Account can be
opened in any bank branch or Business Correspondent (Bank Mitr)
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outlet. Accounts opened under PMJDY are being opened with Zero
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balance. However, if the account-holder wishes to get cheque book,
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he/she will have to fulfill minimum balance criteria.
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Special Benefits under PMJDY Scheme
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Interest on deposit.
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Accidental insurance cover of Rs. 1 lac
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No minimum balance required.
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The scheme provide life cover of Rs. 30,000/- payable on death
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of the beneficiary, subject to fulfillment of the eligibility
condition.
Beneficiaries of Government Schemes will get Direct Benefit
Transfer in these accounts.
After satisfactory operation of the account for 6 months, an
overdraft facility will be permitted.
Access to Pension, insurance products.
Overdraft facility upto Rs.5000/- is available in only one
account per household, preferably lady of the household.

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Topic 6: NPA-NON-PERFORMING ASSET & SARFAESI ACT
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2002
ah
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It means once the borrower has failed to make interest or principal
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payments for 90 days, the loan is a non-performing asset.
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NPA in case of Agriculture Loans
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Farm Credit within Agriculture loans: A loan will be treated as an
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NPA if installment of the principal or interest remains unpaid
beyond the due date for
(a) two crop seasons in case of short duration crops (maturing
within one year) &
(b) one crop season for long duration crops (maturing after one
year).
This would also be applicable, mutatis mutandis, to agricultural
term loans. In other agriculture loans, the 90 days norm would be
applicable.
SARFAESI Act & Rules

SARFAESI Act (The Securitization & Reconstruction of Financial
Assets & Enforcement of Security Interest Act, 2002) was enacted to
regulate securitization & reconstruction of financial assets &
enforcement of security interest created in respect of Financial
Assets to enable realization of such assets.
The SARFAESI Act provides for the manner for enforcement of
security interests by a secured creditor without the intervention of a
court or tribunal. If any borrower fails to discharge his liability in
repayment of any secured debt within 60 days of notice from the
date of notice by the secured creditor, the secured creditor is
conferred with powers under the SARFAESI Act to

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a) Takes possession of the secured assets of the borrower, including
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transfer by way of lease, assignment or sale, for realizing the
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secured assets
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b) Takeover of the management of the business of the borrower
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including the right to transferby way of lease, assignment or sale
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for realizing the secured assets,
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c) Appoint any person to manage the secured assets possession of
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which is taken by thesecured creditor, and
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d) Require any person, who has acquired any of the secured assets
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from the borrower and from whom money is due to the
borrower, to pay the secured creditor so much of the money as if
sufficient to pay the secured debt.
Assets Portfolio of the Banks according to NPA

(1) standard assets
(2) sub-standard assets
(3) doubtful assets
(4) loss assets.
Standard asset is one that does not disclose any problems &
which does not carry more than normal risk attached to the
business.
An asset which has been classified as NPA for a period not
exceeding 12 months is considered as sub-standard asset.
Doubtful asset is one which has remained NPA for a period
exceeding 12 months.
An asset which is considered uncollectible & loss has been
identified by the bank or internal or external auditors or the RBI
inspection & the loss has not been written off is regarded as loss
asset.

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SARFAESI 2002, Requirement of Net Owned Fund (NOF) for
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Asset Reconstruction Companies
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No Asset Reconstruction Company (hereinafter referred to as “the
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ARC”) shall commence or carry on the business of securitisation or
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asset reconstruction without having Net Owned Fund (hereinafter
or
referred to as NOF) of not less than Rupees two crore or such other
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higher amount as the Reserve Bank specify. It has been decided to
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fix the minimum NOF requirement for ARCs at ₹ 100 crores.
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All the ARCs which are already registered with Reserve Bank of
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India and not having the revised minimum NOF shall achieve a
minimum NOF of ₹ 100 crore latest by March 31, 2019.
A Brief on REVERSE MORTGAGE LOAN

The scheme of reverse mortgage has been introduced for the benefit
of senior citizens owning a house but having inadequate income to
meet their needs. Some important features of reverse mortgage are:
a) A homeowner who is above 60 years of age is eligible for reverse
mortgage loan. It allows him to turn the equity in his home into
one lump sum or periodic payments mutually agreed by the
borrower&the banker.
b) NO REPAYMENT is required as long as the borrower lives,
Borrower should pay all taxes relating to the house&maintain the
property as his primary residence.
c) The amount of loan is based on several factors:
 Borrower‟s age,
 Value of the property
 Current interest rates &
 The specific plan chosen.

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As per the scheme formulated by National Housing Bank (NHB),
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the maximum period of the loan period is 15 years. The residual
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life of the property should be at least 20 years. Where the borrower
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lives longer than 15 years, periodic payments will not be made by
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lender. However, the borrower can continue to occupy.
or
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Topic 7: HYPOTHECATION, PLEDGE, & MORTGAGE
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What is pledge?
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U/s 172 of Indian Contracts Act, pledge is bailment (delivery) of
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goods as security for payment of a loan. Only goods (movable
or
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assets excluding actionable claims (Sec 2(7) of Sales of Goods Act)
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can be pledged.
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What is the difference between Pledge and Hypothecation?
Hypothecation Pledge
Defined SARFAESI Act 2002 Indian Contract Act 1872
in (Sec 2 n) (section 172)
Definition Charge on movable Bailment of goods as
property in favour of security for payment of a
secured creditor debt or performance of
without delivery of promise
possession
Parties: Hypothecator Pledger / pawner
-Borrower Hypothecate Pledger / pawnee
-Bank
Nature of Movable assets such as Goods
securities stocks, machinery,
vehicles
Possession Borrower (in trust for Possession with bank till
bank). Bank cannot repayment of the loan. Bank
take possession has to preserve the goods
without consent of the carefully & return the same,

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borrower. On taking if loan is repaid.
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possession bank gets
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rights of pledge & can
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sell the assets without
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or
intervention.
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What is Mortgage?
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As per section 58 of Transfer of Property Act 1882, mortgage is
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transfer of interest in specific immovable property for the purpose
of securing the payment of money advanced or to be advanced by
way of loan, an existing or future debt or the performance of an
engagement which may give rise to pecuniary liability.

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TOPIC 8: ALL ABOUT THE MARGINAL COST OF FUNDS
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BASED LENDING RATE (MCLR)
ah
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ob
Marginal Cost of funds based Lending rate was introduced by
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RBI that replaced the 'base Rate.' From 1st April 2016, the RBI
or
made it compulsory for all banks to make marginal Cost of
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funds based lending rates.
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It refers to the minimum interest rate of a bank below which it
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cannot lend, except in some cases allowed by the RBI. It is an
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internal benchmark or reference rate for the bank.
MCLR actually describes the method by which the minimum
interest rate for loans is determined by a bank - on the basis of
marginal cost or the additional or incremental cost of arranging
one more rupee to the prospective borrower.
RBI decided to shift from base rate to MCLR because the rates
based on marginal cost of funds are more sensitive to changes in
the policy rates. This is very essential for the effective
implementation of monetary policy.
MCLR aimed at:

Improve the transmission of policy rates into the lending rates
of banks.
Bring transparency in the methodology followed by banks for
determining interest rates on advances.
Ensure availability of bank credit at interest rates which are fair
to borrowers as well as banks.
Enable banks to become more competitive and enhance their
long run value and contribution to economic growth.
MCLR is composed of 4 factors:

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1) Tenor Premium
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2) Negative carry in maintaining CRR
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3) Marginal Cost of Funds
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4) Operational Costs of bank
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How is MCLR Calculated?
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1) Tenor Premium: This simply implies that the length of loan is
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directly proportional to the amount of premium to be paid. For one
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residual tenor, this will remain the same.
2) Negative carry in maintaining CRR with RBI: CRR means the
cash reserve ratio or the amount of cash that is reserved by the
banks. This amount cannot be used by the banks for its daily
purposes. This amount is submitted to the RBI as a token of safety.
The CRR is inversely proportional to the amount of money with the
bank to be used for lending and investment purposes. The only
reason for CRR is to regulate liquidity and ensure safety in the
banking system.
3) Marginal Costs of Funds: It consists of three sub-headings:
(i) Interest charged by the bank to its customers on deposits.
(ii) Rate of interest that RBI charges to banks for borrowings
(iii) Net worth rate of return 92% weightage is provided to (i) + (ii)
and 8% is provided to (iii.)
4) Bank's Operating Cost: It includes the daily utility actions of the
bank. It is evident that MCLR is largely dependent on the marginal
cost of funds. It is also dependent on the repo rate and a variation
in this rate should also bring a change in MCLR.

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Topic 9: IMPORTANT POINTS ON ATM IN INDIA
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ah
What is an Automated Teller Machine (ATM)?
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Ans. Automated Teller Machine is a computerized machine that
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provides the customers of banks the facility of accessing their
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account for dispensing cash&to carry out other financial & non-
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financial transactions without the need to actually visit their bank
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branch.
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What is White Label ATMs (WLAs)?
Ans. ATMs set up, owned&operated by non-banks are called White
Label ATMs. Non-bank ATM operators are authorized under
Payment & Settlement Systems Act, 2007 by the Reserve Bank of
India.
Is there any time limit for the card issuing banks for recrediting
the customers account for a failed ATM/WLA transaction?
Ans. As per the RBI instructions, banks have been mandated to
resolve customer complaints by re-crediting the customer‟s account
within 7 working days from the date of complaint.
Are the customers eligible for compensation for delays beyond 7

working days?
Ans. Yes. Effective from July 1, 2011, banks have to pay
compensation of Rs. 100/- per day for delays in re-crediting the
amount beyond 7 working days from the date of receipt of
complaint for failed ATM transactions. The compensation has to be
credited to the account of the customer without any claim being
made by the customer. If the complaint is not lodged within 30
days of transaction, the customer is not entitled for any
compensation for delay in resolving his / her complaint.
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Topic 10: CODES WHICH ARE USED IN BANKING SECTOR
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ah
IFSC (Indian Financial System Code)
bo
ob
Indian Financial System Code is an alpha-numeric code that
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uniquely identifies a bank-branch participating in the NEFT
or
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system.
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This is an 11-digit code with the first 4 alpha characters
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representing the bank, The 5th character is 0 (zero).and the last 6
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characters representing the bank branch.
IFSC is used by the NEFT system to identify the originating /
destination banks / branches and also to route the messages
appropriately to the concerned banks / branches.
For ex: SBIN0015986:
i. First 4-character SBIN – refers to State Bank of India.
ii. 0 is a control number.
iii. last six characters (015986) represents the SBI branch Jail Road,
Hari Nagar New Delhi.
MICR (Magnetic Ink Character Recognition)

MICR stands for Magnetic Ink Character Recognition. MICR
Code is a 9-numeric digit code which uniquely identifies a bank
branch participating in the ECS Credit scheme.
MICR code consists of 9 digits e.g 400229128
i. First 3 digits represent the city (400)
ii. Next 3 digits represent the bank (229)
iii. Last 3 digits represent the branch (128)
Note: The MICR Code allotted to a bank branch is printed on the
MICR band of cheque leaves issued by bank branches.

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TOPIC 11: BANKING OMBUDSMAN SCHEME 2006
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ah
The Banking Ombudsman Scheme enables an expeditious and
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inexpensive forum to bank customers for resolution of complaints
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relating to certain services rendered by banks. The Banking
or
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Ombudsman is a senior official appointed by the Reserve Bank of
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India to redress customer complaints against deficiency in certain
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banking services. All Scheduled Commercial Banks, Regional Rural
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Banks and Scheduled Primary Co-operative Banks are covered
under the Scheme.
Other Important Points:

 The Banking Ombudsman does not charge any fee for filing and
resolving customers‟ complaints.
 The amount, if any, to be paid by the bank to the complainant by
way of compensation for any loss suffered by 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.
 The Banking Ombudsman may award 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 a complaint is not settled by an agreement within a period of
one month, the Banking Ombudsman proceeds further to pass
an award. Before passing an award, the Banking Ombudsman
provides reasonable opportunity to the complainant and the
bank, to present their case.

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 If one is not satisfied with the decision passed by the Banking
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Ombudsman, one can approach the appellate authority against
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the Banking Ombudsmen‟s decision. Appellate Authority is
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vested with a Deputy Governor of the RBI.
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 If one is aggrieved by the decision, one may, within 30 days of
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the date of receipt of the award, appeal against the award before
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the appellate authority.
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Topic 12: DEPOSIT INSURANCE AND CREDIT GUARANTEE
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CORPORATION (DICGC)
ah
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Which banks are insured by the DICGC?
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Commercial Banks: All commercial banks including branches of
or
foreign banks functioning in India, local area banks & regional
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rural banks are insured by the DICGC.
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What does the DICGC insure?
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In the event of a bank failure, DICGC protects bank deposits that
are payable in India. The DICGC insures all deposits such as
savings, fixed, current, recurring, etc. except the following types of
deposits.
(i) Deposits of foreign Governments;
(ii) Deposits of Central/State Governments;
(iii) Inter-bank deposits;
(iv) Deposits of the State Land Development Banks with the State
co-operative bank;
(v) Any amount due on account of any deposit received outside
India
(vi) Any amount, which has been specifically exempted by the
corporation with the previous approval of Reserve Bank of India.
What is the maximum deposit amount insured by the DICGC?

Each depositor in a bank is insured upto a maximum of Rs.1,00,000
(Rupees One Lakh) for both principal & interest amount held by
him in the same capacity.
Does the DICGC insure just the principal on an account or both

principal & accrued interest?

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The DICGC insures principal & interestupto a maximum amount of
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Rs. One lakh.
ah
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Topic 13: THE BIGGEST MERGER: SBI MERGER 2017
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Merger of Associates of SBI and Bhartiya Mahila Bank (BMB) on
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01st April 2017 with State Bank of India (SBI) was a historic move
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in the history of India. SBI is not only the largest Public lender of
India but also the most reliable and Employment providing
organization of the country. Here is all the relevant information
that you must know before appearing the interview.
1. 1st April was the record date in India as the merger of State
Bank of India took place (SBI) with five of its associate banks
and Bhartiya Mahila Bank. The five associate banks are State
Bank of Bikaner and Jaipur (SBBJ), State Bank of Mysore (SBM),
State Bank of Travancore (SBT), State Bank of Hyderabad (SBH)
and State Bank of Patiala (SBP).
2. SBI has rebranded its corporate website as "bank.sbi" from the
earlier sbi.co.in.
3. The background to the SBI signboard has been changed from
white to “inky blue” and SBI will be written in a new font
called Effra.
4. The designing and rebranding of SBI logo has been done by a
company called Design Stack.
5. The SBI logo symbolizes its role of a custodian that will keep
customers‟ money safe.

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6. With the merger, State Bank of India has entered the league of
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'Top 50 Global Banks' with a balance sheet size of Rs. 41
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trillion. SBI was earlier placed at 54th rank globally but after the
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merging it moved to 44th position making it in the top 50
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leading banks globally.
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7. The last time such a rebranding exercise was undertaken in
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1971, after the government nationalized banks under former
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Prime Minister's Indira Gandhi regime.
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8. Post-merger, SBI‟s market share will increase to nearly 22 per
cent from 17 per cent.
9. After the merger the tagline of SBI has remained same
i.e. "Banker to every Indian".
10. The total customer base of the bank reaches 37 crore with a
branch network of around 24,000 and nearly 59,000 ATMs
across the country. The merged entity now has a deposit base of
more than Rs 26 lakh-crore and advances level of Rs 18.50 lakh
crore.

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Topic 14: THE CHANGE IN THE TAX STRUCTURE IN INDIA:
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ALL ABOUT THE GST
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GST is one indirect tax for the whole nation, which will make India
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one unified common market. GST is a single tax on the supply of
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goods and services, right from the manufacturer to the consumer.
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Credits of input taxes paid at each stage will be available in the
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subsequent stage of value addition, which makes GST essentially a
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tax only on value addition at each stage. The final consumer will
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thus bear only the GST charged by the last dealer in the supply
chain, with set-off benefits at all the previous stages.
It will be a national sales tax that will be levied on either

consumption of goods or use of services. It will replace 16 current
levies -seven central taxes like excise duty and service tax and nine
state taxes like VAT and entertainment tax, this will lead to one
market with one tax rate. France was the first country to implement
the GST in 1954.
GST Council finalises the tax rates on Goods & Services under
the 4-slab structure
GST Council finalised tax rates on goods and services under the
four-slab structure with essential items of daily use being kept in
the lowest bracket of 5 percent. The Council was headed by
Finance Minister Arun Jaitley and comprising representatives of
all states in the meeting that was held in J&K. GST will be
applicable from 1st July 2017.
Tax Rates finalised under GST

According to GST slabs, seven per cent of the items fall under the
exempt list while 14 per cent have been put in the lowest tax
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bracket of 5 per cent. Another 17 per cent items are in 12 per cent
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tax bracket, 43 per cent in 18 per cent tax slab and only 19 per
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cent of goods fall in the top tax bracket of 28 per cent.
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No GST Slab
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Foodgrains, milk and other articles of daily use have been
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exempted from taxation under the GST regime.The items are:
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foodgrains, gur, milk, eggs, curd, lassi, unpacked paneer, natural
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honey, fresh vegetables, fruits, atta, besan, maida, vegetable oil,
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Prasad, common salt, contraceptive, bread, bindi, vermillion,
stamp, judicial documents, printed books, bangles and handloom
products.
5 PER CENT GST SLAB

The items that are used daily but are not considered articles of basic
necessity are taxed at 5 per cent under the GST regime. The items
are: sugar, tea, coffee, edible oil, coal, skimmed milk powder, milk
food for babies, condensed milk, packed paneer, newsprint,
umbrella, PDS kerosene, LPG, broom, fish fillet, cream, frozen
vegetables, spices, pizza bread, juice, sabudana, coal, medicines,
stent and lifeboat.
12 PER CENT SLAB

The items that are not essential but used by a large number of
households and people will attract 12 per cent GST. The items are
butter, ghee, mobile phones, cashew, almonds, sausages, fruit
juices, packed coconut water, agarbatti, frozen meat products,
animal fat, mixtures, ayurvedic medicines, tooth powder, colour
books and sewing machine.
18 PER CENT SLAB

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The articles are considered to be used by middle-class people will
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attract 18 per cent GST from July 1. The items are: hair oil, soap,
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toothpaste, capital goods, industrial intermediaries, pasta, corn
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flakes, jams, soups, ice-cream, toilet paper, facial tissues, iron and
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steel, fountain pen, mineral water, camera, speaker, icecream,
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envelops and instant food items.
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28 PER CENT SLAB
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Such items, which are considered as luxury goods or health
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hazards will attract 28 per cent GST. The articles are consumer
durables, cars, cement, chewing gum, custard powder, pan masala,
perfume, shampoo, make-up items, fireworks, motorcycles, paint,
deodorant, shaving cream, hair dye, washing machine, vending
machines, vacuum cleaner, hair clippers and dishwasher.

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Topic 15: What are the NEGOTIABLE INSTRUMENTS & the
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ACT 1881?
ah
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ob
In India the Negotiable Instruments Act was passed during 1881
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which came into force wef. March 01, 1882.
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Cheque
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A cheque is (a) a bill of exchange (b) drawn on a specified bank&(c)
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not expressed to be payable otherwise than on demand. It includes
electronic image of a truncated cheque & also an electronic cheque.
AMOUNT OF A CHEQUE
Where amount of a cheque differs in words & figures, as per
Section 18, amount written in words should be paid irrespective of
the fact, which amount is less or more.
Types of Cheque
1. Bearer Cheque or open Cheque
When the words "or bearer" appearing on the face of the cheque are
not cancelled, the cheque is called a bearer cheque. The bearer
cheque is payable to the person specified therein or to any other
else who presents it to the bank for payment.
2. Order Cheque
When the word "bearer" appearing on the face of a cheque is
cancelled & when in its place the word "or order" is written on the
face of the cheque, the cheque is called an order cheque. Such a
cheque is payable to the person specified therein as the payee, or to
any one else to whom it is endorsed (transferred).
3. Crossed Cheque

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Crossing of cheque means drawing two parallel lines on the face of
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the cheque with or without additional words like "& CO." or
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"Account Payee" or "Not Negotiable". A crossed cheque cannot be
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encashed at the cash counter of a bank but it can only be credited to
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the payee's account.
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4. Ante-Dated Cheque
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If a cheque bears a date earlier than the date on which it is
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presented to the bank, it is called as "ante-dated cheque". Such a
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cheque is valid upto 3 months from the date of the cheque.
5. Post-Dated Cheque
If a cheque bears a date which is yet to come (future date) then it is
known as post-dated cheque. A post-dated cheque cannot be
honoured earlier than the date on the cheque.
6. Stale Cheque
If a cheque is presented for payment after 3 months from the date
of the cheque it is called stale cheque. A stale cheque is not
honoured by the bank.
7. A self-cheque
A self-cheque is written by the account holder as pay self to receive
the money in the physical form from the branch where he holds his
account.
8. “A truncated cheque” means a cheque which is truncated during

the course of clearing cycle, either by the clearing house or by the
bank whether paying or receiving payment, immediately on
generation of an electronic image for transmission, substituting
the further physical movement of the cheque in writing. The
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expression “clearing house” means the clearing house managed by
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the RBI or a clearing house recognised as such by the RBI.‟
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Parties of a Cheque
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There are three parties to the cheque
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 Drawer or Maker
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 The bank - on whom the cheque is drawn (i.e. the bank with
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whom the account is maintained by the drawer)
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 Payee – Payee is the person whose name is mentioned on the
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cheque to whom or to whose order the money is directed to be
paid.
Endorsement & its Types

As per Section 15, endorsing means signing on the face or backside
of an instrument (or even on a paper called Allonge or stamped
paper), for the purpose of negotiating (transferring to next person)
a negotiable instrument.
Endorsement in full
If an endorser signs his name & adds a direction to pay the amount
mentioned in the instrument to, or to order of, a specified person,
the endorsement is said to be in full. Blank endorsements can be
converted into full.
Restrictive endorsement
Where an endorsement prohibits & restricts further
negotiability of the instrument, it is called restricted
endorsement.

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The words „Pay to Ashish only‟ or „Pay to Ashish for my use‟ or
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„Pay to Ashish for account of B‟, are the cases of restrictive
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endorsement.
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Crossing of a Cheque
or
Crossing of a cheque means two parallel transverse lines on the
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face with or without words, such as „& Co‟, „not-negotiable‟,
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„payee‟s account only‟ etc. The words without lines will not
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constitute crossing. Such instruments should not be paid as
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drawer‟s mandate is not clear.
Crossing is applicable in case of cheques & demand draft only
& does not cover bill of exchange or promissory note.
TYPES OF CROSSING
General crossing (sec 123)
General crossing is where a cheque bears across its face two parallel
transverse lines (with or without words such as “& co” or any
abbreviation. (Words not important, lines are).
Special crossing (sec 124)

Where a cheque bears across its face, name of bank, either with or
without the words not-negotiable (lines are not important, the
addition of name of the bank is important), that addition shall be
deemed as special crossing & the cheque shall be considered to be
crossed specially to that banker.
Special Crossing in favour more than one bank: As per Section

127, if a cheque is crossed specially to more than one bank (unless
one bank is acting as collecting agent to another), the payment shall
be refused. A cheque crossed to two or more branches of the same
bank is considered to be crossed to one bank only.
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Not negotiable crossing
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As per Section 130, a person taking a cheque crossed generally or
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specially bearing the words „not negotiable‟ shall not have not be
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capable of giving a better title to the cheque than that, which the
or
person from whom he took it, had. If Ramesh obtains a cheque
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without consideration, his title is defective. When he endorses this
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cheque, the endorsee shall not be able to get a better title, even if he
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paid the value.
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Demand Drafts
Demand draft is defined as per Section 85 (a) of NI Act 1881 as an
order to pay money drawn by one office of a bank upon another
office of the same bank for a sum of money payable to order on
demand.
Important features of a demand draft are:
 It is payable to order on demand (85-A NI Act).
 It cannot be issued as payable to bearer (Sec. 31 RBI Act).
 If a bank fails to honour a bank draft, it renders itself liable for
damages. Similarly, mission of signatures or wrong signatures
can also make the bank liable.
 By prior arrangement, the paying bank could be a different
bank also.
Cheque Truncation System

Truncation is the process of stopping the flow of the physical
cheque issued by a drawer at some point by the presenting
bank en-route to the paying bank branch. In its place an
electronic image of the cheque is transmitted to the paying
branch through the clearing house, along with relevant

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information like data on the MICR band, date of presentation,
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presenting bank, etc. This effectively eliminates the associated
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cost of movement of the physical cheques, reduces the time
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required for their collection and brings elegance to the entire
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activity of cheque processing.
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Cheque Truncation speeds up the process of collection of
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cheques resulting in better service to customers, reduces the
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scope of loss of instruments in transit, lowers the cost of
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collection of cheques, and removes reconciliation-related and
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logistics-related problems, thus benefitting the system as a
whole.
Reserve Bank of India has therefore decided to focus on
improving the efficiency of the cheque clearing cycle. Offering
Cheque Truncation System (CTS) is a step in this direction.
The New Approach to CTS implementation?

The new approach is the grid-based approach. Under this
approach the entire cheque volume in the country which was
earlier cleared through 66 MICR Cheque Processing locations
is consolidated into the three grids in New Delhi, Chennai and
Mumbai.
Each grid provides processing and clearing services to all the
banks under its respective jurisdiction. Banks, branches and
customers based at small / remote locations falling under the
jurisdiction of a grid would be benefitted, irrespective of
whether there exists at present a formal arrangement for
cheque clearing or otherwise.
Grid-based CTS, is a superior system as it encompasses a
larger geographical area and the chances of paying bank not
having presence in the grid location is seldom. Under grid-
based Cheque Truncation System clearing, all cheques drawn
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on bank branches falling within in the grid jurisdiction are
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treated and cleared as local cheques.
ah
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The benefits from CTS could be summarized as follows –
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• Shorter clearing cycle
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• Superior verification and reconciliation process
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• No geographical restrictions as to jurisdiction
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• Operational efficiency for banks and customers alike
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• Reduction in operational risk and risks associated with paper
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clearing
• No collection charges for collection of cheque drawn on a bank
located within the grid.
• It will also result in reduction in the cheque processing fee,
reduction in operational overhead, elimination of clearing
differences and reconciliation issues etc.

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Topic 16: THE PRIORITY SECTOR LENDING (PSL)
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ah
It means provide credit to the needy sectors of the society. The
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sectors are:
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Agriculture
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Micro & Small Enterprises
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Education
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Housing
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Export
Weaker Sections
Social Infrastructure
Renewable Energy
Targets under PSL

Agriculture: 18 % of ANBC (Adjusted Net Bank Credit).
Out of this 18 %, a target of 8 % of ANBC is for Small &
Marginal Farmers, to be achieved in a phased manner i.e., 7 %
by March 2016&8 % by March 2017.
Weaker Sections: 10 % of ANBC.
Micro Enterprises: 7.5 % of ANBC has been prescribed for
Micro Enterprises, to be achieved in a phased manner i.e. 7 % by
March 2016&7.5 % by March 2017.
Overall PSL Target for Domestic Bank/Foreign Bank with more
than 20 Branches: 40 % of Adjusted Net Bank Credit.
Overall PSL Target for Foreign Bank with less than 20
Branches: 40 % of Adjusted Net Bank Credit to be achieved in a
phased manner:
2017-18 36
2018-19 38
2019-20 40
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Categorization of MSME according to MSME ACT 2006
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Manufacturing Sector (Goods)
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Enterprises Investment in plant & machinery
or
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Micro Enterprises Does not exceed twenty-five lakh
re
rupees
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Small Enterprises More than twenty-five lakh rupees
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but does not exceed five crore
rupees
Medium Enterprises More than five crore rupees but
does not exceed ten crore rupees
Service Sector
Enterprises Investment in equipment
Micro Enterprises Does not exceed ten lakh rupees
Small Enterprises More than ten lakh rupees but does
not exceed two crore rupees
Medium Enterprises More than two crore rupees but
does not exceed five crore rupees
Other Targets under PSL

Farmers with landholding of up to 1 hectare are considered as
Marginal Farmers. Farmers with a landholding of more than 1
hectare & upto 2 hectares are considered as Small Farmers.
Scheduled Commercial Banks having any shortfall in lending to
priority sector shall be allocated amounts for contribution to the
Rural Infrastructure Development Fund (RIDF) established with
NABARD.

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For Renewable Energy, bank loans up to a limit of Rs.15 crore to
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borrowers for purposes like solar based power generators, etc.
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For individual households, the loan limit will be Rs.10 lakh per
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borrower.
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or
For Housing, banks can provide loans to individuals up to Rs. 28
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lakh in metropolitan centres (with population of ten lakh&
re
above) &loans up to Rs. 20 lakh in other centres for
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purchase/construction of a dwelling unit per family.
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Export credit will be allowed up to 32 % of ANBC for Foreign
banks with less than 20 branches in India.
For Education, banks can provide loans to individuals for
educational purposes including vocational courses uptoRs. 10
lakh for studies in India & Rs. 20 lakh for studies abroad.
Limits under Social Infrastructure Bank loans up to a limit of ₹5
crore per borrower for building social infrastructure for activities
namely schools, health care facilities, drinking water facilities &
sanitation facilities in Tier II to Tier VI centres.
Monitoring of Priority Sector Lending targets

To ensure continuous flow of credit to priority sector, there will be
more frequent monitoring of priority sector lending compliance of
banks on „quarterly‟ basis instead of annual basis as of now.
Non-achievement of Priority Sector targets

Scheduled Commercial Banks having any shortfall in lending
to priority sector shall be allocated amounts for contribution to
the Rural Infrastructure Development Fund (RIDF) established
with NABARD & other Funds with NABARD/NHB/SIDBI, as
decided by the Reserve Bank from time to time.
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The interest rates on banks‟ contribution to RIDF or any other
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Funds, tenure of deposits, etc. shall be fixed by Reserve Bank
ah
of India from time to time.
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RBI revises priority sector lending norms for RRBs
or
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Seeing the growing significance of RRBs in pursuit of financial
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inclusion agenda, it has been decided to revise the priority sector
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guidelines for RRBs.
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Some of the salient features of the guidelines are as following:
Targets: 75 % of total outstanding to the sectors eligible for
classification as priority sector lending.
Categories of the Priority Sector: Medium Enterprises, Social
Infrastructure & Renewable Energy will form part of the Priority
Sector, in addition to the existing categories, with a cap of 15 %
of total outstanding.
Agriculture: 18% % of total outstanding should be advanced to
activities mentioned under Agriculture.
Small & Marginal Farmers: A target of 8 % of total outstanding
has been prescribed for Small & Marginal Farmers within
Agriculture.
Micro Enterprises: A target of 7.5 % of total outstanding has
been prescribed for Micro Enterprises.
Weaker Sectors: A target of 15 % of total outstanding has been
prescribed for Weaker Sections.
Monitoring: Priority Sector Lending will be monitored on a
quarterly as well as annual basis.
Note: The revised guidelines will be operational with effect from
January 1, 2016.

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Priority Sector Lending Certificates - Scheme
ah
bo
The purpose of PSLCs is to enable banks to achieve the priority
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sector lending target and sub-targets by purchase of these
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or
instruments in the event of shortfall and at the same time
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incentivize the surplus banks; thereby enhancing lending to the
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categories under priority sector.
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The PSLCs will be traded through the CBS portal (e-Kuber) of
om
RBI.
Scheduled Commercial Banks (SCBs), Regional Rural Banks
(RRBs), Local Area Banks (LABs), Small Finance Banks (when
they become operational) and Urban Co-operative Banks who
have originated PSL eligible category loans subject to such
regulations as may be issued by the Bank are eligible for the
PSLC.
All PSLCs will be valid till March 31st and will expire on April
1st.
The PSLCs would have a standard lot size of ₹ 25 lakh and
multiples thereof.
What are the Types of PSLCs?

There would be four kinds of PSLCs :–
i) PSLC Agriculture: Counting for achievement towards the total
agriculture lending target.
ii) PSLC SF/MF: Counting for achievement towards the sub-target
for lending to Small and Marginal Farmers.
iii) PSLC Micro Enterprises: Counting for achievement towards the
sub target for lending to Micro Enterprises.
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iv) PSLC General: Counting for achievement towards the overall
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priority sector target.
ah
bo
Note: 'Export Credit' can form a part of underlying assets against
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the PSLC - General. However, any bank issuing PSLC-General
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or
against 'Export Credit' shall ensure that the underlying 'Export
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Credit' portfolio is also eligible for priority sector classification by
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domestic banks.
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Topic 17: FINANCIAL MARKETS IN INDIA AND THE
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INSTRUMENTS
ah
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Money Market
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It is a market for short-term debt securities, such as commercial
or
paper, repos, negotiable certificates of deposit, & Treasury Bills
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with a maturity of one year or less.
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Capital Market
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It is the market for long term funds. It refers to all the facilities &
institutional arrangements for borrowing & lending medium &
long term funds.
Money Market VS Capital Market
Money Market Capital Market

Market for short term Market for long term financial
financial assets assets
Maturity period less than one Maturity period beyond one
year year
Deals over the counter Deals at stock exchange
No. of players limited No. of players unlimited
Regulated by RBI Regulated by SEBI
Major money market Instruments

Certificate of Deposit (CD)
Commercial Paper (CP)
Inter Bank Participation Certificates
Inter Bank term Money
Treasury Bills
Bill Rediscounting
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Call/Notice Money
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ah
Terms relating to Money Market
bo
ob
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Call Money Money lent or borrowed for one day
or
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Notice Money lent or borrowed for a period of 2-14 days.
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Money
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Term Money lent or borrowed for 15 daysto 1 year.
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Money
Yield to Expected rate of return on an existing security
maturity purchased for the market.
Coupon Specified interest rate on a fixed maturity security
Rate fixed at the time of issue.
CALL/NOTICE MONEY MARKET OPERATIONS

Under call money market, funds are transacted on overnight
basis & under notice money market, for 2 days to 14 days.
Participants include banks (excluding RRBs) &Primary Dealers
(PDs), both as borrowers & lenders. Non-bank institutions are
not permitted in the call/notice money market with effect from
August 6, 2005.
Calculation of interest payable is based on FIMMDA‟s (Fixed
Income Money Market & Derivatives Association of India)
Handbook of Market Practices.
INSTRUMENT OF GOVT. BORROWING

To meet the temporary receipt & expenditure mismatch, govt.
obtains over draft from RBI under Ways & Means Advances. For

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short term liquidity, it issues cash management bills, treasury bills
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of 91 days, 182 days&364 days maturity. For long term funds, it
ah
bo
uses dated securities in the form of bonds/long term loans.
ob
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Treasury Bills
or
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These are the instruments (in the form of promissory notes) of
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short term borrowing by the Central govt., first issued in India
ss
in 1917.
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Investors: Treasury bills can be purchased by any one
(including individuals) except State govt.
Denomination: Minimum amount of face value Rs. 25000 & in
multiples thereof. There is no specific amount/limit on the
extent to which these can be issue or purchased.
Maturity: 91 days, 182 days&364 days.
Rate of interest: Treasury bills are zero coupon securities. They
are issued at a discount& redeemed at face value at maturity.
The return to the investors is the difference between the
maturity value or the face value (that is Rs. 100)&the issue price.
Cash Management Bills (CMB)

CMB introduced on 11.08.11, is a short-term security to be sold
by Govt. of India to raise temporary money for cash
management needs.
The tenure is less than 91 days but the notified amount & date
of issue depends upon the temporary cash requirement of the
Govt.
It is issued at discount to the face value through auctions, as in
the case of the Treasury Bills.
Dated Securities

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These are long term securities & carry a fixed or floating
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coupon (interest rate) paid on the face value, payable at fixed
ah
time periods (half-yearly).
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ob
The tenor of dated securities can be up to 40 years.
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Public Debt Office of RBI acts as the registry/depository of
or
Govt. securities & deals with the issue, interest payment &
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repayment of principal at maturity.
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Ways & Means Advances (WMAS)
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WMAs were introduced as per an agreement between RBI &
Govt. WMAs are temporary overdrafts by RBI to govt. (Central
& State) under Section 17(5) of RBI Act. WMSs replaced the
earlier ad hoc T-Bills system.
Objective: WMAs bridge the time interval of mismatch
between govt. expenditure & receipts.
These are not a source of finance.
Duration: 10 consecutive working days for Central Govt.&14
days for State Govt.
Certificate Of Deposit
This scheme was introduced in July 1989, to enable the banking
system to mobilize bulk deposits from the market, which they can
attract at competitive rates of interest.
Who can issue Scheduled commercial banks (except RRBs) & All
India Financial Institutions within their
„Umbrella limit‟.
CRR/SLR Applicable on the issue price in case of banks
Investors Individuals (other than minor), corporations,

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companies, trusts, funds, associations etc.
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Maturity Min: 7 days Max: 12 Months (in case of FIs
ah
minimum 1 year & maximum 3 years).
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ob
Amount Min: Rs. 1 lac, beyond which in multiple of Rs.
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1 lac
or
Market related. Fixed or floating
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Int. Rate
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Loan Against collateral of CD not permitted
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Nature Usance Promissory note. Can be issued in
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Dematerialisation form only wef. June 30, 2002
Commercial Paper
CP introduced during 1990, is a short term money market
instrument issued as an unsecured usance promissory note &
privately placed.
Who can issue Commercial paper (CP): Companies, primary
dealers (PDs)&all-India financial institutions (FIs).
Maturity: Min 7 days & max upto one year
Amount: Min Rs. 5 lakh or multiples thereof.
A company is eligible to issue CP if:
(a) Its tangible net worth, as per latest audited balance sheet, is not
less than Rs. 4 crore.
(b) Sanctioned working capital limit by bank/s or all-India financial
institution/s;
(c) The borrower accounts are classified as a Standard Asset by
financing bank/s/ institution/s &
(d) Minimum credit rating from SEBI approved credit rating
agency (CRA) is A3. Rating should not be due for review.
What is Merchant Banking

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Merchant banking stands for providing various services relation to
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capital market & financing the corporate sector. The Merchant
ah
Bankers provide consultancy to the corporate sector on the issues
bo
ob
like finance, capital structure & investment, mergers, takeover &
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amalgamations, establishing coordination between the government
or
& the corporate sector.
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Capital Markets in India
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It refers to all the facilities & institutional arrangements for
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borrowing & lending medium & long-term funds.
It is segregated into (i) gilt edged market & (ii) the industrial
securities market.
The gilt-edged market refers to the market for govt. & semi-
govt. securities which are traded in the market in stable value &
are sought after by banks & other institutions.
The industrial securities market refers to the market for shares
& debentures of old as well as new companies. This market is
further divided as primary market & secondary market.
a) The primary market refers to the setup which helps the
industry to raise funds by issuing different types of securities,
which are issued directly to the investors, both individual &
institutions.
b) The secondary market refers to the network for subsequent sale
& purchase of securities, after these are issued.
A Brief on Indian Depository Receipts (IDR)

IDR is an instrument in the form of a Depository Receipt created by
the Indian depository in India against the underlying equity shares
of the issuing company. In an IDR, foreign companies would issue
shares, to an Indian companies would issue shares, to an Indian

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Depository which would in turn issue depository receipts to
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investors in India.
ah
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ob
Mutual Fund Terms
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Asset Management Company: A company formed & registered
or
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under the Companies Act 1956&approved as such by the SEBI to
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manage the funds of a mutual fund. Under an agreement (with
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the trustees of the Mutual Fund), an AMC undertakes to
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formulated mutual funds schemes, distribute income as per
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agreement.
Balanced fund: This fund invests in bonds & blue-chip stocks to
conserve capital. It pays reasonable income capital appreciation.
Close-ended scheme: A scheme where funds are raised for a
fixed period. The scheme is wound up after that period & funds
are returned with capital appreciation to unit holders. Normally,
a close-ended scheme is listed on a stock exchange.
Fixed income funds: A mutual fund which primarily invests in
fixed income securities like bonds & debentures. The objective is
to provide monthly or yearly income to investors.
Net asset value: The price of value of one share of a fund. It is
calculated by summing the quoted values of all the securities
held by the fund, adding in cash & any accrued income &
subtracting liabilities & dividing the result by the number of
shares outstanding. Fund companies compute the NAV once a
day based on closing market prices.
Open ended scheme: A scheme is the one which continuously
offers its units & buys them back from investors.

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Topic 18: IMPORTANT MISCELLANEOUS BANKING
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AWARENESS TOPICS
ah
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NATIONALISATION OF BANKS
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Nationalisation of Imperial Bank of India & its conversion into
or
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State Bank of India in July 1955.
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Conversion of 8 major State-associated banks into subsidiary
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banks of SBI in 1959.
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Nationalisation of 14 Indian scheduled banks in July 1969.
Nationalisation of 6 more banks in April 1980 & New Bank of
India merged into PNB.
FOREIGN EXCHANGE RESERVES
India's foreign exchange reserves comprise foreign currency

assets, gold & special drawing rights allocated to it by the
International Monetary Fund (IMF) in addition to the reserves it
has parked with the fund.
Foreign exchange reserves are held & managed by the RBI.
The Foreign currency assets are investment mainly in
instruments abroad which have the highest credit rating & which
do not pose any credit risk. These include sovereign bonds,
treasury bills & short-term deposits in top-rated global banks
besides cash accounts.
TRANSFER SYSTEM IN BANKING SECTOR
Real Time Gross Settlement (RTGS)

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RTGS implemented w.e.f. 26.03.2004 (revised on 19.10.13), is a
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centralized payment system operated by RBI. In RTGS inter-bank
ah
bo
payment instructions are processed & settled, on gross basis in a
ob
real-time environment.
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or
It uses Indian Financial Network (INFINET)&SFMS platforms.
dp
RTGS is regulated by RTGS System Regulations, 2013.
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National Electronic Funds Transfer (NEFT)
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RBI operationalised NEFT System in Nov 2005. It facilitates
transfer of funds from any bank branch to any other bank branch.
Amount: There is no lower/upper value limit.
Bank account: NEFT is an account to account transfer system.
The remitter&beneficiary should have a bank account.
Introduction of additional settlement batches in NEFT System

Reserve Bank of India announced the introduction of additional
settlements in the NEFT system to enhance the efficiency and add
to customer convenience. The additional 11 settlements at half-hour
intervals will be introduced with effect from July 10, 2017 at 8.30
am, 9.30 am, 10.30 am ……… 5.30 pm and 6.30 pm, taking the total
number of half hourly settlement batches during the day to 23. The
starting batch at 8.00 am and closing batch at 7.00 pm shall remain
the same as hitherto.
Centralized Funds Management Systems (CFMS)

CFMS was operated & maintained by RBI to enable operations on
current accounts maintained at various offices of the RBI, through
standard message formats in a secure manner.
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Nepal Remittance Scheme
ah
bo
It is a cross-border one-way remittance facility scheme, for
ob
remittance from India to Nepal.
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Amount: Up to Indian Rs. 50,000 from NEFT branches.
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Beneficiary will receive funds in Nepalese rupees.
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CORE BANKING SOLUTIONS
Core Banking Solutions (CBS) or Centralised Banking Solutions is
the process which is completed in a centralized environment i.e.
under which the information related to the customer‟s account (i.e.
financial dealings, profession, income, etc.) is stored in the Central
Server of the bank (that is available to all networked branches)
instead of the branch server.
RATING OF BANKS IN INDIA

RBI‟s 1995 working group headed by Sh. S. Padmanabhan
suggested method for rating.
Rating criteria: RBI rates the banks on a 5-point scale of A to E,
widely on the lines of international CAMELS rating model for
domestic banks & CALCS model for foreign banks.
CAMELS Rating for Domestic Banks

C: Capital adequacy ratio
A: Asset quality
M: Management Effectiveness
E: Earning (i.e. profitability)
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L: Liquidity (asset-liability management)
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S: System & controls
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Rating parameters for foreign banks
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C: Capital adequacy ratio
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A: Asset quality
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L: Liquidity
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C: Compliance
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S: System & controls

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Topic 19: ACCOUNTS FOR FOREIGN (CURRENCY/PERSON)
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IN INDIA
ah
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NRO A/c (Foreign Tourist)
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1) Foreign tourists during their short visit to India can open a Non-
or
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Resident (Ordinary) Rupee (NRO) account (Current / Savings)
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with any Authorised Dealer bank dealing in foreign exchange. Such
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account can be opened up to a maximum period of 6 months.
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2) Tourists can freely make local payments through the NRO
account. All payments to residents exceeding INR 50,000 can be
made only by means of cheques / pay orders / demand drafts.
EEFC A/c
1) Exchange Earners' Foreign Currency Account (EEFC) is an
account maintained in foreign currency with an Authorised Dealer
i.e. a bank dealing in foreign exchange.
2) It is a facility provided to the foreign exchange earners, including
exporters, to credit 100 % of their foreign exchange earnings to the
account, so that the account holders do not have to convert foreign
exchange into Rupees & vice versa, thereby minimizing the
transaction costs.
3) All categories of foreign exchange earners, such as individuals,
companies, etc. who are resident in India, may open EEFC
accounts.
4) An EEFC account can be held only in the form of a current
account. No interest is payable on EEFC accounts.
ACCOUNTS FOR NRI/PIO
Non-Resident Ordinary Rupee Account (NRO Account)

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NRO accounts may be opened / maintained in the form of
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current, savings, recurring or fixed deposit accounts. Interest
ah
rates offered by banks on NRO deposits cannot be higher than
bo
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those offered by them on comparable domestic rupee deposits.
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Account should be denominated in Indian Rupees.
or
NRI/PIO may remit from the balances held in NRO account an
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amount not exceeding USD one million per financial year, subject
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to payment of applicable taxes.
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The limit of USD 1 million per financial year includes sale
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proceeds of immovable properties held by NRIs/PIOs.
Non-Resident (External) Rupee Account (NRE Account)

NRE account may be in the form of savings, current, recurring or
fixed deposit accounts.
Account will be maintained in Indian Rupees.
Accrued interest income & balances held in NRE accounts are
exempt from Income tax.
Authorised dealers/authorised banks may at their discretion
allow for a period of not more than two weeks, overdrawings in
NRE savings bank accounts, up to a limit of Rs.50,000.
Loans up to Rs.100 lakh can be extended against security of
funds held in NRE Account either to the depositors or third
parties.
Foreign Currency Non-Resident (Bank) Account – FCNR (B)

Account
FCNR (B) accounts are only in the form of term deposits of 1 to 5
years
Account can be in any freely convertible currency.

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Loans up to Rs.100 lakh can be extended against security of
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funds held in FCNR (B) deposit either to the depositors or third
ah
parties.
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ob
The interest rates are stipulated by the Department of Banking
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Operations & Development, Reserve Bank of India.
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Topic 20: FINANCIAL INSTITUTIONS in INDIA
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ah
National Bank for Agriculture & Rural Development
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Established on 12th July 1982 on the recommendation of
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CRAFICARD committee (also called as Sivaraman Comittee)
or
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For Agricultural finance, NABARD is the apex organization.
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Chairman: Dr. Harsha Kumar Bhanwala
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Head Quarters: Mumbai
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Rural Infrastructure Development Fund (RIDF) is operated by
NABARD, instead in April 1995.
NABARD is the "Micro-Finance Regulatory Authority"
Small Industries Development Bank of India (SIDBI)

Small Industries Development Bank of India (SIDBI in short) was
established in the year 1990 (Date: 2nd April 1990) under the
Small Industries Development Bank of India Act 1989 as a
subsidiary of Industrial Development Bank of India.
Chairman- Dr. KshatrapatiShivaji
Head Quarters: Lucknow
Securities & Exchange Board of India (SEBI)

It is the regulator for the securities market in India. SEBI was
initially established as a non-statutory body in April 1988, to
regulate the working of stock exchange. Later it was given a
statutory status on April 1992 via SEBI Act, 1992with the
following objectives.
Chairman- Ajay Tyagi
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REGIONAL RURAL BANK (RRB)
ah
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Regional Rural Bank Were Set Up by An Ordinance In 1975,
ob
Later Replaced By Rrbs Act, 1976 As Pre Banking Commission
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or
Recommendation In 1975.
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Father Of RRB is M.Swaminathan.
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The Govt. Of India had appointed a working group on rural
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banks under the chairmanship of Mr. M. Narasimham in 1975.
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First RRBs were set up on 2nd oct.
Share Holder Contribution In %: Government Of India 50%
Sponsor Bank 35% State Government 15% Total 100%.
EXIM BANK
The Export-Import (EXIM) Bank of India is the principal financial
institution in India for coordinating the working of institutions
engaged in financing export & import trade.
It is a statutory corporation wholly owned by the Government of
India.
It was established on January 1, 1982 for the purpose of
financing, facilitating & promoting foreign trade of India.
Chairman- Yaduvendra Mathur
NATIONAL HOUSING BANK (NHB):

The National Housing Bank (NHB), the apex institution of
housing finance in India, was set up as wholly owned subsidiary
of the Reserve Bank of India.
The bank started its operations from July 1988.
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NHB is a subsidiary bank of Reserve Bank of India.
sm
National Housing Bank was established under section 6 of
ah
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National Housing Bank Act (1987).
ob
The headquarters of NHB is in New Delhi.
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Chairman: Shri Sriram Kalyanaraman
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ECGC
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Export Credit Guarantee Corporation of India. This organisation
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provides risk as well as insurance cover to the Indian exporters.
Chairman- Geetha Muralidhar

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Topic 21: IMPORTANT FINANCIAL TERMS IMPORTANT FOR
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SBI INTERVIEW
ah
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Asset-Liability Management
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ALM implemented in India wef 1.4.1999 is a comprehensive &
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dynamic framework for measuring, monitoring & managing the
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market risk of a bank. It is the management of structure of balance
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sheet (liabilities & assets) to maximize net earning from interest
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within overall risk-preference (present & future) of the bank.
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Cross Selling
Cross-selling stands for offering to the existing & new customers,
some additional banking products, with a view to expand banking
business, reduce the per customer cost of operations & provide
more satisfaction & value to the customer.
Liquidity Adjustment Facility

Liquidity Adjustment Facility (LAF) was introduced by RBI
during June, 2000 in phases, to ensure smooth transition &
keeping pace with technological upgradation.
Tenor: Reverse Repo auctions (for absorption of liquidity) &
Repo auctions (for injection of liquidity) are conducted on a daily
basis (except Saturdays).
Cap: 0.25% of NDTL w.e.f. 01.04.14.
Marginal Standing Facility (MSF)

MSF was introduced w.e.f. May 09, 2011, by RBI.
Eligibility: Scheduled Commercial Banks having Current
Account & SGL Account with RBI.
Tenor & Amount: It can be availed up to 2% of NDTL at the end
of 2nd preceding fortnight. It is for one day.
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Clearing Corporation of India
ah
Clearing Corporation of India Limited (CCIL) was incorporated on
bo
ob
30th of April, 2001, as the country‟s first clearing house for the Govt.
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securities, forex & other related market segments. It commenced
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operations from Feb 15, 2002. It provides a system for efficient
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clearing of money, government securities & foreign exchange
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market transactions.
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Collateralised Borrowing & Lending Obligation (CBLO)
CBLO, an RBI approved money market instrument, is developed
by CCIL for the benefit of the entities phased out from interbank
call money market or given restricted participation in terms of
ceiling on call borrowing & lending transactions & who do not
have access to the call money market.
It is a discounted instrument available in electronic book entry
form for the maturity period ranging from 7 days to 90 Days (can
be up to one year as per RBI guidelines).
Asset Securitisation
Securitisation of assets is an additional channel for recycling of
funds by business entities including banks.
Securitisation is process through which the future receivables
(say rent, installment of a term loan due in future) of an
organization (say bank), are converted into debt instruments
(such as bonds with a fixed rate of return) & then sold.
Banking Codes & Standards Board of India

Banking Codes & Standards Board of India (BCSBI) was set up
on the lines of a similar set up in UK to oversee the Fair Practice
Code evolved by the Bankers.
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Members: The Board was set up as a Society, under the Societies
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Registration Act, 1860. Commercial banks, RRBs & Urban Coop
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Banks are its members. RBI was funding the entire cost of
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operations of the Board for the initial 5 years.
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A Governing council of the BCSBI looks after its financial affairs
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& managerial policies.
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The tenure of the Council is 5 years & the appointment of the
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Council after 5 years would be with the concurrence of the RBI.
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Kisan Vikas Patra
KPV are regulated by KVP Rules 2014, Scheme is available
through Post Offices & those banks that are authorized to operate
PPF scheme.
Denomination: Rs.1000, Rs.5000, Rs.10000 & Rs.50000
Types of certificates: Category Single, Joint A-Type & Joint B-
Type (E/S).
Maturity period: 113 Month
Rate of Interest: 7.6%.
Rate of interest: Rs.1000 becomes double during the maturity
period.
1. Nomination facility, 2. Pledge for loan facility& 3. pre-mature
payment after 2 years & 6 months subject to certain conditions, is
eligible.
Mudra Bank
MUDRA, which stands for Micro Units Development &
Refinance Agency Ltd, is a financial institution being set up by
Government of India for development & refinancing micro units‟
enterprises.
Under the aegis of Pradhan Mantri MUDRA Yojana (PMMY),
MUDRA has already created its initial products/ schemes. The
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interventions have been named „Shishu‟, „Kishor‟ & „Tarun‟ to
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signify the stage of growth/ development & funding needs of the
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beneficiary micro unit / entrepreneur & also to provide a
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reference point for the next phase of graduation / growth to look
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forward to. The financial limit for these schemes is:
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a) Shishu: covering loans up to 50,000/-
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b) Kishor: covering loans above 50,000/- & up to 5 lakh
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c) Tarun: covering loans above 5 lakh to 10 lakh
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National Institute of Bank Management (NIBM)
It was established in 1969 by RBI, in consultation with the
Government of India, as an autonomous apex institution for
research, training, education&consultancy in bank management.
Its mandate is to play a proactive role of “think-tank” of the
banking system. The Governor of RBI is the Chairman of the
Governing Board. National Institute of Bank Management (NIBM)
is situated at Pune, Maharashtra.
Know Your Customer Guidelines

KYC means “Know Your Customer”. It is a process by which banks
obtain information about the identity and address of the customers.
This process helps to ensure that banks‟ services are not misused.
The KYC procedure is to be completed by the banks while opening
accounts. Banks are also required to periodically update their
customers‟ KYC details.
The Government of India has notified 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
and NREGA Job Card.

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What are Small Accounts?
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The „Small Accounts‟ have certain limitations such as:
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balance in such accounts at any point of time should not exceed
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Rs.50,000
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total credits in one year should not exceed Rs.1,00,000
or
total withdrawal and transfers in a month should not exceed
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Rs.10,000
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Foreign remittances cannot be credited to such accounts.
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Such accounts remain operational initially for a period of twelve
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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.

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Topic 22: NBFC‟S IN INDIA
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A Non-Banking Financial Company (NBFC) is a company
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registered under the Companies Act, 1956 engaged in the business
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of loans & advances, acquisition of shares/ stocks/ bonds/
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debentures/ securities issued by Government or local authority or
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other marketable securities of a like nature, leasing, hire-purchase,
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insurance business, chit fund business.
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Difference between BANK & NBFC:
NBFCs lend & make investments & hence their activities are akin to
that of banks; however there are a few differences as given below:
i. NBFC cannot accept demand deposits;
ii. NBFCs do not form part of the payment & settlement system &
cannot issue cheques drawn on itself;
iii. Deposit insurance facility of Deposit Insurance & Credit
Guarantee Corporation is not available to depositors of NBFCs,
unlike in case of banks.
Register with RBI:
A company incorporated under the Companies Act, 1956&desirous
of commencing business of non-banking financial institution as
defined under Section 45 I(a) of the RBI Act, 1934 should comply
with the following:
a) It should be a company registered under Section 3 of the
companies Act, 1954
b) It should have a minimum net owned fund of Rs 200 lakh.
Deposits in NBFC:

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a) Presently, the maximum rate of interest an NBFC can offer is
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12.5%. The interest may be paid or compounded at rests not
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shorter than monthly rests.
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b) The NBFCs are allowed to accept / renew public deposits for a
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minimum period of 12 months & maximum period of 60
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months. They cannot accept deposits repayable on demand.
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c) The deposits with NBFCs are not insured.
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d) The repayment of deposits by NBFCs is not guaranteed by RBI.
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Topic 23: DEVELOPMENTS IN THE BANKING SECTOR
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A Brief on NPCI
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National Payments Corporation of India (NPCI) is an umbrella
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organization for all retail payments system in India. NPCI was
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incorporated in December 2008 & the Certificate of Commencement
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of Business was issued in April 2009. The authorized capital was
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pegged at Rs 300 crore & paid up capital was Rs 100 crore. The
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Board constitutes of Shri Balachandran M as the Chairman, & Shri
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A. P. Hota, Managing Director & Chief Executive Officer, NPCI.
A Brief on BHIM
Bharat Interface for Money is an app that lets you make simple,
easy & quick payment transactions using Unified Payments
Interface (UPI). This can be done using just Mobile number or
Virtual Payment Address (VPA). Currently it is available in 12
languages.
A Virtual Payment Address (VPA) is a unique identifier which
you can use to send & receive money on UPI.
Amount of money that can be sent using BHIM is uptoRs 10,000
per transaction & a maximum of Rs 20,000 per day for one bank
account.
A Brief on UPI- 2016

Unified Payments Interface is an instant payment system
developed by NPCI. UPI is built over the IMPS infrastructure &
allows you to instantly transfer money between any two parties'
bank accounts.
UPI-PIN is a 4-6 digit pass code you create/set during first time
registration with this App.
At present, the upper limit per UPI transaction is Rs. 1 Lakh.
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Immediate Payment Service (IMPS)
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It was launched in 2010. IMPS offers an instant, 24X7, interbank
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electronic fund transfer service through mobile phones.
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Overview of *99# Service
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*99# service launched by NPCI, which works on Unstructured
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Supplementary Service Data (USSD) channel. This service was
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launched in 2014. Banking customers can avail the service by
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dialing *99#, a “Common number across all Telecom Service
Providers (TSPs)” on their mobile phone & transact through an
interactive menu displayed on the mobile screen.
Overview of *99*99# Service

*99*99# is a USSD (Unstructured Supplementary Service Data)
based value added service from NPCI that facilitates the customers
to check the status of his/her Aadhaar number seeding/linking in
the bank account. The service works across all GSM service
providers & brings together the diverse ecosystem partners such as
Banks & TSPs (Telecom Service Providers).
MMID
MMID stands for Mobile Money Identifier. MMID is a 7-digit code
issued by the bank to their customers for availing IMPS.
A Brief on QSAM
*99*99# service, is alternatively known as QSAM (Query Service on
Aadhaar Mapper). Using this service, a person can check the
Aadhaar seeding/linking status in his/her bank account.
A Brief on NACH
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NPCI implemented “National Automated Clearing House
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(NACH)” for Banks, Financial Institutions, Corporates &
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Government, is a web based solution to facilitate interbank, high
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volume, electronic transactions which are repetitive & periodic in
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nature. NACH System can be used for making bulk transactions
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towards distribution of subsidies, dividends, interest, salary,
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pension etc. for bulk transactions towards collection of payments
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pertaining to telephone, electricity, water, loans, investments in
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mutual funds, insurance premium etc.
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NACH‟s Aadhaar Payment Bridge (APB) System, developed by
NPCI has been helping the Government & Government Agencies in
making the Direct Benefit Transfer scheme a success.
BBPS
Bharat Bill Payment System (BBPS) will function as a tiered
structure for operating the bill payment system in the country
under a single brand image. National Payments Corporation of
India (NPCI) will function as the authorized Bharat Bill Payment
Central Unit (BBPCU), which will be responsible for setting
business standards, rules & procedures for technical & business
requirements for all the participants. Payments may be made
through the BBPS using cash, transfer cheques, & electronic modes.
A Brief on Specified Bank Notes (Cessation of Liabilities) Act

2017
Government of India notified the Specified Banknotes (Cessation of
liabilities) Act 2017.The SBNs cease to be the liabilities of the
Reserve Bank under Section 34 of the RBI Act & cease to have the
guarantee of the Central Government.
In terms of Section 5 of the Act, with effect from December 31, 2016
no person shall knowingly or voluntarily hold, transfer or receive
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any specified banknotes. After the expiry of grace period, holding
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of not more than 10 notes in total, irrespective of denomination or
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not more than 25 notes for the purpose of study/ research/
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numismatics is permitted. In terms of Section 7, contravention of
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Section 5 shall be punishable with fine which may extend upto
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10,000 INR or five times the face value of the SBNs involved in the
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contravention, whichever is higher. The limit of exchange for NRIs
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will be Rs. 25000/-.
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Rupee Denominated Bonds
Any corporate (entity registered as a company under the
Companies Act, 1956/ 2013) or body corporate (entity specially
created out of a specific act of the Parliament) & Indian banks are
eligible to issue Rupee denominated bonds overseas. Real Estate
Investment Trusts (REITs) & Infrastructure Investment Trusts
(InvITs) coming under the regulatory jurisdiction of the Securities
& Exchange Board of India (SEBI) are also eligible. The minimum
maturity period for such bonds will be 3 years.
Small Finance Banks

The objective is to further financial inclusion by (a) provision of
savings vehicles, (b) supply of credit to small business units;
small & marginal farmers; micro & small industries; & other
unorganised sector entities, through high technology-low cost
operations.
It shall primarily undertake basic banking activities of
acceptance of deposits & lending to unserved & underserved
sections including small business units, small & marginal
farmers, micro & small industries & unorganised sector entities.
The minimum paid-up equity capital is Rs. 100 crores.

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The promoter's minimum initial contribution to the paid-up
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equity capital of such small finance bank shall at least be 40
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%&gradually brought down to 26 % within 12 years from the
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date of commencement of business of the bank.
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Payments Banks
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The objective is to further financial inclusion by providing (i)
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small savings accounts(ii) payments/remittance services to
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migrant labour workforce, low income households, small
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businesses, other unorganised sector entities&other users.
Scope of activities: Acceptance of demand deposits. Payments
bank will initially be restricted to holding a maximum balance
of Rs. 100,000 per individual customer.
The payments banks cannot undertake lending activities. Apart
from amounts maintained as Cash Reserve Ratio (CRR) on its
outside demand&time liabilities, it will be required to invest
minimum 75 % of its "demand deposit balances" in SLR
eligible. The minimum paid-up equity capital shall be Rs. 100
crore.
The promoter's minimum initial contribution to the paid-up equity
capital of such payments bank shall at least be 40 % for the first five
years from the commencement of its business.

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Topic 24: ALL ABOUT THE PAN CARD
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What is PAN?
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Permanent Account Number or PAN is a means of identifying
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various taxpayers in the country. The PAN system of identification
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is a computer-based system that assigns unique identification
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number to every Indian tax paying entity. It is a 10-character
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alphanumeric number uniquely allotted to the PAN Cardholder.
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Uses of PAN Card
IT Returns Filing: All individuals and entities who are eligible for
Income tax are expected to file their IT returns. A PAN card is
necessary for filing of IT returns.
Opening a bank account: A PAN card is required in order to open

a new bank account, whether it is a savings or a current account.
Buying or selling a motor vehicle: If you wish to buy or sell a
motor vehicle worth more than Rs. 5, 00, 000, you have to provide
the PAN Card details.
Purchase of jewellery: If you are looking at buying any sort of

jewellery that is valued at over Rs. 5, 00, 000, you will have to
provide PAN card details at the time of purchase.
Making investments: If you are considering investing in securities,

you would have to furnish your PAN details for any transactions
amounting to above Rs. 50, 000. This extends to equities, mutual
funds, bonds as well as debentures.

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Property: Buying, selling or renting property in India now requires
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PAN card proof.
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Fixed Deposits: If you plan on investing your money in a Fixed
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Deposit (FD) amounting to above Rs. 50, 000 in a bank, you will
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have to provide your PAN details. This is done as the bank will
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deduct TDS (Tax Deductible at Source) on the FD interest amount.
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Cash Deposits: If you are making a cash deposit that amounts to
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over Rs. 50, 000 at a time, you will have to submit PAN details as
well.
Insurance Payments: As per the Income Tax Department

directives, PAN card details have to be furnished when making an
insurance payment exceeding Rs. 50, 000 a year.

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Topic 25: ALL ABOUT THE PREPAID INSTRUMENTS
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ah
PPIs are payment instruments that facilitate purchase of goods
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and services, including financial services, remittance facilities etc.
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against the value stored on such instruments.
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PPIs that can be issued in the country are classified under three
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categories viz. (i) Closed system prepaid payment instruments
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(ii) Semi-closed system prepaid payment instruments and (iii)
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Open system prepaid payment instruments.
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Classification of PPI‟s
Closed System Prepaid Payment Instruments: These are PPIs
issued by an entity, including individuals, proprietorship firms,
partnership firms etc., for facilitating the purchase of goods and
services from that entity only. These instruments do not permit
cash withdrawal or redemption. As these instruments cannot be
used for payments and settlement for third party services, the issue
and operation of such instruments are not classified as payment
systems requiring approval / authorisation by the Reserve Bank of
India.
Semi-Closed System Prepaid Payment Instruments: These are

PPIs which can be used for purchase of goods and services,
including financial services, remittance facilities etc. at a group of
clearly identified merchant locations/ establishments which have a
specific contract with the issuer (or contract through a payment
aggregator / payment gateway) to accept the PPIs as payment
instruments. These instruments do not permit cash withdrawal,
irrespective of whether they are issued by bank or non-bank PPI
Issuers. Semi-closed PPIs issued by banks and non-banks would
have same features, unless otherwise specified.
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Open System Prepaid Payment Instruments: These are PPIs which
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shall be only issued by banks, can be used for purchase of goods
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and services, including financial services, remittance facilities etc. at
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any merchant locations. Banks issuing such PPIs shall also facilitate
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cash withdrawal at ATMs / BCs.
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Validity of PPI‟s
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All prepaid payment instruments issued in the country shall have a
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minimum validity period of one year from the date of
activation/issuance to the holder.
Limits under PPI

According to the RBI‟s new draft norms for PPIs, amount in a PPI
should not exceed Rs 1 lakh at any point of time if the customer
provides full KYC and Rs. 20,000 if the customer provides
minimum KYC details to the PPI issuing entity. Further, only
banks will be permitted to issue open system PPIs after full KYC
in addition to semi closed PPIs.
The draft also said that the maximum value of any prepaid
payment instrument, where specific limits have not been
prescribed, should not exceed Rs 50,000.
Cash loading to PPIs should be limited to Rs. 50,000 per month
subject to the overall limit of the PPI.
RBI norms further said maximum value in prepaid gift
instrument should not exceed Rs 20,000 and in case of PPI for
Mass Transit Systems it should not be more than Rs 3,000 at any
time. PPIs could be loaded/reloaded by cash, by debit to a bank
account, by credit and debit cards, and other PPIs.

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Topic 26: RISK MANAGEMENT IN BANKING SECTOR
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Maintaining a trade-off between risk and return is the business of
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risk management. Risk management in the banking sector is a key
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issue linked to financial system stability.
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What is a Risk?
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A risk can be defined as an unplanned event with financial
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consequences resulting in loss or reduced earnings. Two most
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important developments in the banking sector because of which
banks have to emphasise on risk management:
Deregulation: It has given banks more autonomy in areas like

lending, investment, interest rate structure etc. As a result of these
developments, banks are required to manage their own business
themselves and at the same time maintain liquidity and
profitability.
Technological innovation: Technological innovations have

provided a platform to the banks for creating an environment for
efficient customer services as also for designing new products. This
has also increased the diversity and complexity of risks, which
need to be managed professionally so that the opportunities
provided by the technology are not negated.
Major Risks in Banking Sector
Liquidity Risk: Liquidity risk is the risk of a bank not being able to
have enough cash to carry out its day-to-day operations.

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Interest Rate Risk: The risk of an adverse impact on Net Interest
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Income (NII) due to variations of interest rate may be called Interest
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Rate Risk. It is the exposure of a Bank‟s financial condition to
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adverse movements in interest rates.
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Market Risk: Basel Committee on Banking Supervision defines
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market risk as the risk of losses in on- or off-balance sheet positions
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that arise from movement in market prices. Market risk is the most
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prominent for banks present in investment banking.
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Credit or Default Risk: It usually occurs because of inadequate
income or business failure. Credit risk signifies a decline in the
credit assets‟ values before default that arises from the deterioration
in a portfolio or an individual‟s credit quality.
Operational Risk: Basel Committee on Banking Supervision

defines operational risk “as the risk of loss resulting from
inadequate or failed internal processes, people & systems or from
external events. Operational risk, the risk in all banking
transactions.
Other Risks
Strategic Risk: Strategic Risk is the risk arising from adverse
business decisions, improper implementation of decisions or lack of
responsiveness to industry changes.
Reputation Risk: Reputation Risk is the risk arising from negative

public opinion. This risk may expose the institution to litigation,
financial loss or decline in customer base.

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Role of RBI in Risk Managements in the Banks
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ah
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RBI has been using CAMELS rating to evaluate the financial
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soundness of the Banks. CAMELS Model consists of six
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components namely Capital Adequacy, Asset Quality,
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Management, Earnings Quality, Liquidity and Sensitivity to Market
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risk.
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After the evolution of the BIS prudential norms in 1988, the RBI
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took a series of measures to realign its supervisory and regulatory
standards and bring it at par with international best practices.
Finally, it was in the year 1999 that RBI recognised the need of an
appropriate risk management and issued guidelines to banks
regarding assets liability management, management of credit,
market and operational risks. The entire supervisory mechanism
has been realigned since 1994 under the directions of a newly
constituted Board for Financial Supervision (BFS), which functions
under the aegis of the RBI, to suit the demanding needs of a strong
and stable financial system.
A process of rating of banks on the basis of CAMELS in respect of

Indian banks and CACS (Capital, Asset Quality, Compliance and
Systems & Control) in respect of foreign banks has been put in
place from 1999.
Basel Norms
Basel is a city in Switzerland. It is the headquarters of Bureau of
International Settlement (BIS), which fosters co-operation among

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central banks with a common goal of financial stability and
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common standards of banking regulations.
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Basel guidelines refer to broad supervisory standards formulated
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by this group of central banks - called the Basel Committee on
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Banking Supervision (BCBS). The purpose of the accord is to ensure
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that financial institutions have enough capital on account to meet
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obligations and absorb unexpected losses.
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Basel I: The Basel Capital Accord
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In 1988, BCBS introduced capital measurement system called Basel
capital accord, also called as Basel 1. It focused almost entirely on
credit risk. It defined capital and structure of risk weights for
banks. The minimum capital requirement was fixed at 8% of risk
weighted assets (RWA). RWA means assets with different risk
profiles.
Basel II: The New Capital Framework

In June 2004, Basel II guidelines were published by BCBS, which
were considered to be the refined and reformed versions of Basel I
accord. The guidelines were based on three parameters, which the
committee calls it as pillars. - Capital Adequacy Requirements:
Banks should maintain a minimum capital adequacy requirement
of 8% of risk assets - Supervisory Review: According to this, banks
were needed to develop and use better risk management
techniques in monitoring and managing all the three types of risks
that a bank faces, viz. credit, market and operational risks - Market
Discipline: This need increased disclosure requirements. Banks
need to mandatorily disclose their CAR, risk exposure, etc to the
central bank. Basel II norms in India and overseas are yet to be fully
implemented.

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Basel III Norms
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a) The Basel Committee is the primary global standard-setter for
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the prudential regulation of banks & provides a forum for
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cooperation on banking supervisory matters. Its mandate is to
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strengthen the regulation, supervision & practices of banks
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worldwide with the purpose of enhancing financial stability.
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Stefan Ingves, Governor of Sveriges Riksbank (SWEDEN), is
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the Chairman of the Basel Committee.
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b) Basel III or Basel 3 released in December, 2010 is the third in the
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series of Basel Accords. These accords deal with risk
management aspects for the banking sector.
c) According to Basel Committee on Banking Supervision "Basel
III is a comprehensive set of reform measures, developed by the
Basel Committee on Banking Supervision, to strengthen the
regulation, supervision & risk management of the banking
sector".
(d) Basel 3 measures aim to:
 Improve the banking sector's ability to absorb shocks arising
from financial & economic stress, whatever the source
 Improve risk management & governance
 Strengthen banks' transparency & disclosures.
Three Pillars of Basel 3

 Pillar 1: Minimum Regulatory Capital Requirements based on
Risk Weighted Assets (RWAs):
Maintaining capital calculated through credit, market & operational

risk areas (mainly that capital which can absorb risk.)
 Pillar 2: Supervisory Review Process:

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Regulating tools & frameworks for dealing with peripheral risks
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that bank face.
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 Pillar 3: Market Discipline:
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Increasing the disclosures that banks must provide to increase the
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transparency of banks
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Important Facts related to BASEL 3
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 Minimum Ratio of Total Capital To RWAs--10.50%
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 Minimum Ratio of Common Equity to RWAs--4.50% to 7.00%
 Tier I capital to RWAs--6.00%
 Core Tier I capital to RWAs--5.00%
 Capital Conservation Buffers to RWAs--2.50%
 Leverage Ratio--3.00%
 Countercyclical Buffer--0% to 2.50%

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Topic 27: A BRIEF ON INDIAN BANKS' ASSOCIATION (IBA)
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Indian Banks' Association (IBA) set up in 1946 with 22 members to
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discuss issues of common interests. Over the years, IBA emerged as
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the Voice of Indian Banking Industry. IBA adopts a consultative
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approach to give its views on any issue pertaining to banking
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sector. The banks voice their views and reach a consensus for the
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common good of the industry, while maintaining the competitive
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spirit. The policy of IBA is well received by all the stakeholders in
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the industry. To work proactively for the growth of a healthy,
professional and forward looking banking and financial services
industry, in a manner consistent with public good.
Effort of IBA
1. Promote sound and progressive banking principles and
practices.
2. Assist and provide common services to members.
3. Co-ordinate and co-operate on procedural, legal, technical,
administration, professional matters.
4. Collate, classify and circulate statistical and other information.
5. Pool expertise towards common objectives of reduction in costs,
increase efficiency, productivity and improve systems, procedures
and banking practices.
6. Build Image of banking industry through publicity and public
relations.
Managing Committee-
Managing Committee of the Association is its governing body,
headed by the Chairman. It consists of 31 members, including Chief
Executives, representing Public Sector, Private Sector, Foreign

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Banks, Co-operative Banks and Associate Banks of State Bank of
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India. Members are elected in the Annual General Meeting and
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retire by rotation. Day to day administration of IBA is handled by a
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Chief Executive assisted by other officials.
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Focus & Priorities of IBA
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IBA has wide range of consultations with:
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1. The Government of India on policy related issues
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2. Industry unions on wage negotiations and improving industrial
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relations
3. Members to encourage inter-bank co-operation and co-ordination
4. Foreign counterparts to widen the horizon and perspectives
5. Other trade bodies for better co-ordination
6. Its constituents and stakeholders for new initiatives
7. The Reserve Bank of India on regulatory issues
Note: Rajeev Rishi is present Chairman of IBA and its

headquarter is in Mumbai.

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Part 2: Banking Current Affairs-2017
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Yes Bank partners with TerraPay for faster international
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remittance
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Private sector lender Yes Bank has partnered with mobile payments
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switch TerraPay to enable real-time money transfer to bank
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accounts in India. Powered by TerraPay‟s global clearing and
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settlement service, the partnership will make it faster and
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convenient for consumers to send money to any bank account.
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IDBI Bank only PSB to get „high‟ rating for code compliance
According to the Code Compliance Rating of banks done by the
Banking Codes and Standards Board of India (BCSBI) 2017, only
one (IDBI Bank) out of 26 public sector banks and eight out of 17
private sector banks got „high‟ rating for their adherence to code
compliance.
The eight private sector banks that got „high‟ rating are- Axis Bank,
DCB Bank, HDFC Bank, ICICI Bank, IndusInd Bank, Kotak
Mahindra Bank, RBL Bank and YES Bank. The three foreign banks
are Citibank, HSBC and Standard Chartered Bank, that were
surveyed got „high‟ ranking.
Note: The code compliance rating are based on five parameters viz.
information dissemination, transparency, grievance redressal,
customer-centricity, and customer feedback.
RBI Issues New Rs500 banknotes with inset letter „A‟

In continuation of issuing of Rs500 denomination banknotes in
Mahatma Gandhi (new) series from time to time which are
currently legal tender, a new batch of banknotes with inset letter
“A” in both the number panels, bearing the signature of Dr. Urjit R.

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Patel Governor, Reserve Bank of India; with the year of printing
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'2017‟ on the reverse, are being issued.
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Indian Overseas Bank launches retail mart in
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Thiruvananthapuram
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Indian Overseas Bank (IOB), the Lead Bank for
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Thiruvananthapuram district, has launched the Retail Mart, a retail
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lending concept, in Kerala's capital city. The exclusive facility that
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handles retail products has started functioning at the main branch.
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SBI cuts interest rate on home loans above Rs 75 lakh by 10 bps
State Bank of India, country‟s largest lender cut the interest rate on
home loans above Rs 75 lakh by 10 basis points (bps) to 8.60
percent. For salaried women borrowers, the loans will be offered at
8.55 percent. According to SBI, the new rates will be effective from
June 15. The home loan rates offered are lowest in the industry.
RBI conducted the financial literacy week

To emphasize the importance of financial literacy, Reserve Bank of
India observed June 5-9, 2017 as Financial Literacy Week across the
country. The Week will focus on four broad themes, viz. Know
Your Customer (KYC), Exercising Credit Discipline, Grievance
Redress and Going Digital.
Vijaya Bank set to develop 100 digital villages

Vijaya Bank is going to develop as many as 100 digital villages in
various States of the country as part of its initiative to promote
digital banking among the rural population.
RBI initiates „prompt corrective action‟ for Dena Bank

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Reserve Bank of India has initiated prompt corrective action (PCA)
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for Dena Bank in view of high net non-performing assets and
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negative return on assets. Previously, central bank had initiated
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PCA for IDBI Bank & UCO Bank in view of high NNPAs and
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negative ROA. Prompt Corrective Action is the action which will
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not have any material impact on the performance of the bank infact
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it will contribute to improve the internal controls of the bank and
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improvement in its activities.
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SBI, World Bank finance Rs. 400-cr solar projects
State Bank of India and the World Bank announced that they had
financed 100 MW of rooftop solar projects worth Rs400 crore in
India. SBI has availed of a loan of $625 million from the World
Bank for on-lending to viable Grid-Connected Rooftop Solar PV
(GRPV) projects undertaken by developers, aggregators and end-
users, for installation of rooftop solar systems.
New pink-green one rupee notes to be in circulation soon

Reserve Bank of India will soon put into circulation currency notes
in one rupee denomination. New one rupee notes with
predominantly pink-green on obverse and reverse in combination
with other colours will be soon put into circulation.The notes
bearing the rupee symbol have been printed by the Government of
India. The note will bear signature of Shaktikanta Das, Secretary in
the Ministry of Finance.
Karnataka Bank pact with HDFC Asset Management

Karnataka Bank Ltd has entered into a distribution agreement to
sell the mutual fund products of HDFC Capital Asset Management
Ltd (HDFCAML) during exchanged the memorandum of
understanding in Mangaluru, Karnataka.
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ur
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Bank of Baroda, IFFCO roll out co-branded debit card for farmers
ah
Bank of Baroda (BOB) and IFFCO rolled out their first set of co-
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branded debit cards for farmers as part of a novel initiative to push
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digitalisation and cashless economy. The co-branded debit cards,
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with inbuilt overdraft of Rs. 2,500 in special savings bank account,
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could be used for purchase of various agri products at IFFCO sale
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counters.
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Federal Bank launches new trading platform
Federal Bank, in association with Geojit, has launched a new
trading platform called “Selfie” for customers. Designed and
managed by Geojit, the trading platform will give its users absolute
control over their investments with timely research inputs to make
sound investment decisions. The features of the Selfie Trading
Platform are a uniform experience across multiple platforms and
devices and an advanced charting platform that enables users to
trade directly from charts, among others.
HDFC Life launches AI-based insurance email bot 'SPOK'

HDFC Life announced the launch of an artificial intelligence-based
application 'SPOK' that can automatically read, understand,
categorise, prioritise and respond to customer emails sent to the
private insurer. 'SPOK', an insurance email bot, can read customer
queries within milliseconds and respond to them. The deployment
of SPOK will improve customer experience, while providing the
support staff with the bandwidth to focus on customer satisfaction.
Axis Bank to issue biodegradable prepaid gift cards

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Axis Bank Ltd has announced biodegradable prepaid gift cards on
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the occasion of World Environment Day. With this, the bank has
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become the first to introduce biodegradable cards in the country.
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Japan's SoftBank Invests Rs 9,000 Crore in Paytm
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Softbank has made its biggest investment in an Indian digital
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enterprise by sealing a funding round of Rs 9,000 crore ($1.4 billion)
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in mobile payments provider Paytm. The Japanese internet &
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telecom conglomerate will now own about a fifth of Paytm.This is
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Softbank's largest investment in a single company in India.
Paytm get final nod to launch Payment Bank

Paytm has received the final nod from the Reserve Bank of India &
is set to launch Paytm Payments Bank on May 23, 2017. Paytm is
the third company from the 11 other applicants to launch payments
bank after Airtel & IndiaPost.
RBI puts restriction on Uco Bank's business

RBI put restriction on Kolkata based PSU UCO Bank‟s lending &
branch expansion plans as the state-run lender made net losses for
the two successive fiscal amid severe stress on asset quality. It has
initiated 'Prompt Corrective Action' (PCA) framework on UCO
bank.
SBI revises service charges & to charge ATM withdrawals at Rs.

25
SBI announced revision in service charges with effect from June 1,
2017. All cash withdrawals through ATM will now be charged at

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Rs. 25 per transaction which will be applicable only to customers of
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its mobile wallet State Bank Buddy.
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Changes done by SBI are as follows-
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1. All Normal Saving Bank accounts will continue to get eight free
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ATM transactions (5 SBI ATMs + 3 other bank ATMs) in Metros
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& 10 free transactions in Non-Metro (SBI ATM + 5 Other Bank
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ATMs) free apart from the bank transaction.
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2. Anyone making upto Rs 1 lakh transfer on IMPS will be charged
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with Rs 5 per transaction plus service tax.
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3. Between Rs 1 lakh – Rs 2 lakh & Rs 2 lakh – Rs 5 lakh, service
charges are at Rs 15 & Rs 25 each plus service tax.
4. On ATMs, cash withdrawal from the savings account will be
charged with Rs 10 per transaction plus service tax.
Dena Bank classifies Videocon loan as „bad‟

Dena Bank has become the first lender to classify Videocon
Industries as a bad loan. With the default on payments, Dena Bank
has declared Videocon Industries account as non-performing asset
(NPA) in the fourth quarter ended March 2017.
The promulgation of the Banking Regulation (Amendment)

Ordinance, 2017
The promulgation of the Banking Regulation (Amendment)
Ordinance, 2017 inserting two new Sections (viz. 35AA & 35AB)
after Section 35A of the Banking Regulation Act, 1949 enables the
Union Government to authorize the RBI to direct banking
companies to resolve specific stressed assets by initiating
insolvency resolution process, where required. RBI has also been
empowered to issue other directions for resolution, & appoint or

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approve for appointment, authorities or committees to advise
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banking companies for stressed asset resolution.
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Yes Bank ties up with Paisabazaar.com
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Yes Bank announced the alliance with Paisabazaar.com under
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which the bank will offer conditionally approved loans to the
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latter‟s existing customers. Under this, the bank will help
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Paisabazaar.com through its advanced analytics & data mining
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capabilities to offer customers of the financial marketplace with
customized & conditionally approved offers across retail lending
products.
SBI, CREDAI ink MoU for concessional loan for housing projects
SBI & real estate developers‟ body CREDAI (Confederation of Real
Estate Developers' Associations of India) signed memorandum of
understanding (MoU) to jointly conduct various initiatives towards
development of the realty sector. The MoU will be in force for a
period of 3 years.
AU Financiers converts to small finance bank

AU Financiers India, a non-banking finance company (NBFC), has
converted itself into a small finance bank by the name AU Small
Finance Bank.
RBI signs MoU with the Bank of Guyana

RBI signed a Memorandum of Understanding (MoU) on
“Supervisory Cooperation & Exchange of Supervisory
Information” with Bank of Guyana. The MoU was signed by Dr.
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Gobind N. Ganga, Governor of Bank of Guyana & Dr. Urjit R. Patel,
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Governor of Reserve Bank of India.
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RBI caps bank exposure to REITs, InvITs at 10%
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RBI permitted banks to invest up to 10% of the unit capital of a Real
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Estate Investment Trust (REITs) or Infrastructure Investment Trusts
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(InvITs). The banks‟ exposure to REITs/InvITs will be within the
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overall ceiling of 20% of the net worth permitted for direct
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investments in shares, convertible bonds/ debentures, units of
equity-oriented mutual funds & Venture Capital Funds (VCFs).
RBI signed MoU with the Royal Monetary Authority of Bhutan

RBI signed a Memorandum of Understanding (MoU) on
“Supervisory Cooperation & Exchange of Supervisory
Information” with the Royal Monetary Authority of Bhutan.
RBI opened the Office of the Banking Ombudsman at

Chhattisgarh & Jammu & Kashmir
Reserve Bank of India has set up two new Offices of the Banking
Ombudsman for the State of Jammu & Kashmir (in Jammu) &
Chhattisgarh (in Raipur).
ICICI Bank data centre becomes country's first IGBC Platinum

rated project
ICICI Bank Data Centre in Hyderabad has achieved the distinction
of becoming the country's first Platinum rated project under IGBC
(Indian Green Building Council) Green Data Centre Rating System.
PNB launches three new products on foundation day

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On the occasion of its Foundation Day, Punjab National Bank
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(PNB) has launched three new products for its customers. The three
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new products are automated electronic toll collection to facilitate
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hassle-free toll payment/ collection, a credit card mobile App & a
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scheme for financing a grid connected Roof Solar Power Project.
or
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YES BANK awarded Golden Peacock Award 2017
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India‟s fifth largest private sector Bank, the YES BANK has won the
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prestigious „Golden Peacock Innovative Product/Service Award
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2017‟ (in Financial sector Banking). It received the prize for its
innovative mobile technology product, SIMsePAY at the Dubai
Global Convention 2017.
RBI issues new framework for bad loans

Reserve Bank of India (RBI) has issued a new set of enabling
provisions titled 'Revised Prompt Corrective Action (PCA)
framework' to resolve the problem of banks mounting non-
performing assets (NPAs), or bad loans. Under the revised
framework, if a bank crosses the third level of risk threshold (where
a bank‟s common equity tier I capital falls below the threshold of
3.625 per cent by 3.125 per cent, or more) it will either be
amalgamated or merged, or taken over by another entity.
Bank Boards Bureau evolves 'GRAF' for PSBs

Bank Boards Bureau (BBB) has evolved a Governance, Reward and
Accountability Framework (GRAF) for public sector banks to
ensure that they have the ability to compete successfully with
private sector banks, small finance and payments banks, foreign
banks and non-banking finance companies. The framework is
guided by the latest global benchmarking on governance practices
provided by the Basel Committee on Banking Supervisions
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guidelines on corporate governance principles for banks released in
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July 2015.
ah
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Bank accounts to be blocked if not self-certified by April 30, 2017
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As part of Foreign Account Tax Compliance Act (FATCA)
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compliance, CBDT has asked the banks/financial institutions to
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link their accounts with Aadhaar number and self-certification
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from customers by April 30, 2017, to avoid closure of accounts.
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ESAF Small Finance Bank launches social deposit scheme
ESAF Small Finance Bank has launched a social deposit scheme
called 'Hrudaya Deposit scheme' in Thrissur, Kerala. The deposit
scheme stands for a social cause through which ESAF Bank
provides the customers an opportunity to be a part in social welfare
projects, which none of the other banks has given so far, stated by
K. Paul Thomas, Managing Director and CEO of ESAF Small
Finance Bank. An individual or a legal entity can join the Hrudaya
Deposit Scheme with a minimum deposit amount of Rs 15 lakh and
for a minimum period of two years.
RBI allows banks to invest in REITs & InvITs

Reserve Bank of India has allowed banks to invest in Real Estate
Investment Trust (REITs) and Infrastructure Investment Trusts
(InvITs), a move that will help revive the cash-starved
infrastructure sector. Banks are allowed to invest in equity-linked
mutual funds, venture capital funds (VCFs) and equities to the
extent of 20% of their Net Owned Fund (NOF).
HDFC Bank UPI on Chillr app

HDFC Bank announced its Unified Payments Interface (UPI) will
also be available on Chillr, a multi-bank mobile payments app. UPI
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is an instant payment system developed by the National Payments
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Corporation of India (NPCI) to enable faster money transfer
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between any two parties‟ bank accounts.
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RBL Bank opens IFSC Banking Unit in GIFT City
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Ratnakar Bank limited (RBL) Bank announced the opening of its
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Indian Financial System Code (IFSC) Banking Unit (IBU) at Gujarat
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International Finance Tec-City (GIFT City).
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NEFT transfers to be faster as RBI cuts clearance time
Reserve Bank of India (RBI) has decided to slash clearance time for
National Electronic Funds Transfer (NEFT) in an attempt to
enhance the efficiency of the electronic payment system and add to
customer convenience. The NEFT settlement cycle will be reduced
from hourly batches to half hourly batches.The newly appointed
Deputy Governor B P Kanungo stated that 11 additional settlement
batches will be introduced at 8.30 am onwards, taking the total
number of half hourly settlement batches during the day to 23.
IDBI Bank cuts deposit rates by up to 75 bps

IDBI Bank has reduced interest rates, ranging from 50 to 75 basis
points, on retail term deposits (RTD) with effect from April 5, 2017.
The highest interest rate that the bank now offers is 6.40% (earlier
6.90%) on deposits of one-two years maturity.
Aditya Birla Group gets RBI licence to start payments bank

Aditya Birla Idea Payments Bank Ltd becomes the seventh entity to
receive a final licence from the Reserve Bank of India (RBI) to set up
a payments bank.
ICICI, Axis Bank sell Rs 1800 crore Ballarpur loans to Edelweiss

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ICICI Bank and Axis Bank sold Rs.1,800 crore of loans to paper
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maker Ballarpur Industries Ltd to Edelweiss Asset Reconstruction
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Company. It‟s also the first time that loans have been sold to an
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asset reconstruction firm. Axis Bank sold loans of Rs.1,200 crore
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and ICICI Bank sold loans of Rs.600 crore.
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SBI cuts lending rates by 0.15%
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Ahead of the Reserve Bank of India's monetary policy this week,
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the country's largest bank, State Bank of India has reduced its
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benchmark lending rate by 0.15%. Base rate or the minimum
lending rate of the bank has been reduced from 9.25% to 9.1%.
NDB invests $1.5 billion in 7 projects in 2 years of operation

The BRICS-backed New Development Bank (NDB) has invested in
seven projects totaling $1.5 billion in about two years of its
operation. Seven projects have been done so far which aggregate
around $1.5 billion. Six of them are in the renewable energy sector
and one in transport financing.
Post merger, SBI begins operations as unified entity

The State Bank of India, the country's largest lender has started
functioning as unified entity from 01st April 2017 post merger of its
five associate banks, besides Bharatiya Mahila Bank. The five
associate banks merged with the SBI are State Bank of Bikaner &
Jaipur (SBBJ), State Bank of Hyderabad (SBH), State Bank of
Mysore (SBM), State Bank of Patiala (SBP) and State Bank of
Travancore (SBT). With the merger, the SBI joins the league of top
50 banks globally in terms of assets. The total customer base of the
bank reaches 37 crore with a branch network of around 24,000 and
nearly 59,000 ATMs across the country. The merged entity now has

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a deposit base of more than Rs 26 lakh-crore and advances level of
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Rs 18.50 lakh crore.
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Kotak Mahindra Bank launches 8-11 app to double customer base
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Kotak Mahindra Bank has launched the '811 banking app' which is
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part of the lender's vision to double customer base in 18 months.
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Customers will be able to open an account on the 811 banking app
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with zero balance. Only Aadhaar and PAN card would be required
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to open 811 account which would provide access to over 100
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features on mobile. The account offers up to 6 percent interest rate
on savings deposits.
SBI launches 'Unnati' credit card

SBI Card launched a unique credit card „SBI Card Unnati‟ targeted
at all SBI customers, including Jan Dhan account-holders across the
country. Any SBI customer with a balance of at least Rs 25,000 in
his/her savings account with the bank would be eligible for the
Unnati credit card without the need for any credit score or credit
history.
Karnataka Bank, SBI Card launch co-branded credit card

Karnataka Bank and SBI Card have launched co-branded credit
cards for the customers of Karnataka Bank. Through this alliance,
they will launch two variants of the co-branded credit card named
„Karnataka Bank Platinum SBI Card‟ and „Karnataka Bank
SimplySAVE SBI Card‟.
Syndicate Bank opens 40 „Ananya‟ branches

Syndicate Bank digitally inaugurated 40 „Ananya‟ transformed
branches. Project Ananya is a two-year large-scale transformation
project undertaken by the bank to provide customers with „best in
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class‟ services while improving and modernizing the whole bank.
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The aim is to enhance customer experience, improve sales focus,
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and improve digital transactions through a dedicated digit zone.
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The bank also launched its first MSME hub in Bengaluru.
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KVB bags „best small bank‟ award
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Karur Vysya Bank (KVB) has been adjudged the „Best Small Bank
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for 2016‟. This is the eighth award won by KVB in the current fiscal.
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Vijaya Bank inks MoU with Piaggio Vehicles
Vijaya Bank entered into an MoU with Piaggio Vehicles for
providing financial support for the purchase of vehicles under
Small Road Transport Operators (SRTO) scheme in Bengaluru.
ICICI Bank partners with Truecaller

ICICI Bank announced a partnership with mobile app firm
Truecaller for a new UPI-based mobile payment service.The new
feature called as Truecaller Pay, and it will allow users of the app to
instantly create a UPI ID, send money to any UPI ID or a mobile
number registered with the BHIM app.
AP tops in Aadhaar seeding of Jan Dhan accounts

The list of state with highest seeded Aadhaar numbers was topped
by Andhra Pradesh which had linked 87.73 per cent of its Jan-Dhan
accounts with Aadhaar numbers followed by Tripura at 87.08 per
cent and Telangana 83.56 percent.
Karnataka Bank‟s launched platinum card

Karnataka Bank has launched the „MoneyPlant RuPay International
Platinum Debit Card‟ to provide more privileges to its premium
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and HNI (high net worth individual) customers. The card has a
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withdrawal limit of Rs75,000 and purchases limit ofRs2 lakh a day
ah
at point-of-sales terminals and e-commerce sites.
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ob
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Repco ties up with NHB
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Repco Home Finance Ltd (RHFL) has signed an agreement with
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National Housing Bank (NHB) for implementation of a credit-
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linked subsidy scheme for the middle-income group. The scheme
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will be implemented for one year with effect from January 1, 2017,
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in all statutory towns. The scheme divides middle-income group
into two categories with annual household income up to Rs12 lakh
and Rs 18 lakh. The subsidy will be available for the two brackets
for a loan amount of Rs 9 lakh and Rs 12 lakh at the rate of 4 per
cent and 3 per cent per annum, respectively, for a tenure of 20
years. The maximum subsidy amount for an individual beneficiary
is Rs 2.35 lakh.
South Indian Bank introduces Aadhar-based payment app

To promote cashless digital transactions, South Indian Bank (SIB)
has introduced Aadhar-based payment in its Unified Payment
Interface (UPI) mobile application- 'SIB M-Pay'.
Cabinet approves proposal for Amendments to the NABARD

Act, 1981
Union Cabinet chaired by the Prime Minister Shri Narendra Modi
has approved the following proposals:
(a) Amendments to National Bank for Agriculture and Rural
Development (NABARD) Act, 1981, include provisions that enable
Central Government to increase the authorized capital of NABARD
from Rs. 5,000 crore to Rs. 30,000 crore and to increase it beyond
Rs. 30,000 crore in consultation with RBI.
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(b) Transfer of 0.4 percent equity of RBI in NABARD amounting to
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Rs. 20 crores to the Government of India.
ah
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NABARD launches water conservation campaign in Karnataka
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NABARD (National Bank for Agriculture and Rural Development)
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will help Karnataka with low-cost technologies for water
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conservation and efficient use of water in the drought-affected
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districts. The main focus of the save water programme would be to
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create awareness and to cover maximum number of villages in the
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districts.
RBI proposes to fix upper limit in PPIs at Rs 1 Lakh

RBI proposed to fix the upper limit for Pre-paid Payment
Instruments (PPIs) at Rs 1 lakh in view of growing usage of PPIs for
a purchase of goods and services. As per the draft, the amount in a
PPI should not exceed Rs 1 lakh at any point of time if the customer
provides full KYC and Rs 20,000 if the customer provides
minimum KYC details to the PPI issuing entity.
Russia‟s VTB bank to shut India office

Russian bank VTB has decided to close its only office in New Delhi,
India to cut costs but will continue to work in India.
ICICI Bank launches new app for rural customers

ICICI Bank, India‟s largest private sector bank by consolidated
assets has announced the launch of a mobile banking app 'Mera
iMobile' for rural customers. This app will allow them to access
banking services as well as information on agri-services.
UCO Bank, Future Generali tie up

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Private insurer Future Generali India Insurance Company (FGII)
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has entered into a corporate agency tie-up for its products with
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public lender UCO Bank.
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HDFC Bank to offer online loans against securities
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HDFC Bank launched an instant digital Loan Against Securities
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(LAS) facility in collaboration with the National Securities
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Depository Ltd.(NSDL). Demat customers can calculate their
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eligibility for overdraft limit against shares, and open a current
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account instantly.
State Bank of India signs MoU with CREDAI

State Bank of India and real estate developers‟ body Confederation
of Real Estate Developers' Associations of India (CREDAI) have
signed a memorandum of understanding (MoU) to jointly conduct
various initiatives towards development of the realty sector. The
MoU will be in force for a period of 3 years.
Bandhan Bank, Avenues India tie up

Bandhan Bank, has signed an agreement with Avenues India Pvt
Ltd, a payment solution provider to provide merchants with
seamless access to point-of-sales (POS) and payment gateway
products.
Kerala gets first private bank: ESAF Small Finance Bank

Chief Minister Pinarayi Vijayan launched ESAF (Evangelical Social
Action Forum) Small Finance Bank, Kerala‟s first private sector
bank since the country‟s Independence, in Thrissur, Kerala. R
Prabha, former Chairman, Kerala Grameen Bank, is the Chairman
of ESAF Small Finance Bank.

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Finance Minister finalized capital infusion for 10 PSU banks
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The Finance Ministry has chalked out a turnaround-linked Rs
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8,586-crore capital infusion plan for 10 PSBs. The Top five capital
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gaining banks are IDBI Bank (Rs 1,900 crore), Bank of India (Rs
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1,500 crore), UCO Bank ( Rs 1,150 crore), Andhra Bank and Indian
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Overseas Bank with Rs (1,100 crore) each.
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All about Gujarat International Financial Tech City (GIFT City)
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A gong resonates in Gandhinagar, Gujarat. Only, this isn't a
metallic one, but PM Narendra Modi's digital gong, a vision to
make India Digital & independent in terms Financial Power.
Keeping the vision in Mind BSE's first international exchange 'India
International Exchange (INX)' has been opened early in this year at
the country's first International Financial Services Centre (IFSC) at
the Gujarat International Finance-Tec (GIFT) City. With this, India
has found a new place on the global financial map.
Here are few important things you must know about GIFT City:
 It is India's first International Financial Services Centre (IF) which
is a fully integrated city with a walk to work culture, it has the
next-in-class infrastructure, connectivity, people, technology &

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legal framework – emerging as a platform for businesses across
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the world.
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 The International Exchange (INX) will provide a platform for
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domestic companies to raise capital in foreign currency through
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bonds.
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 IFSC houses several International Banking Units (IBUs) of banks
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that have already conducted business worth $1.5 billion
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 It will operate 22 hours a day to allow international investors &
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non-resident Indians to trade from anywhere across the globe.
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 It is one of the world‟s most advanced technology platforms with
a turn-around time of four microseconds.
 The concept of IFSC is simple but powerful. It aims to provide
on-shore talent with an offshore technological & regulatory
framework.
 This is to enable Indian firms to compete on an equal footing
with offshore financial centers.
Leadership of GIFT City-

Mr. Sudhir Mankad is the Chairman of GIFT City
Mr. Ajay Pandey Managing Director & Group CEO of GIFT City
Recent activities at GIFT City-

 IFSC at GIFT City entered into an agreement with Gujarat
National Law University (GNLU) to collaborate on efforts for
Skill Development in the field of International Financial Services
& Regulations.
 Belgium has become the first country to open an honorary
consulate office in Gujarat International Finance Tec-City (GIFT
City).

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 General Insurance Corporation of India (GIC Re) has become the
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first re-insurer to open an office at India‟s first International
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Financial Services Centre (IFSC) at Gujarat International Finance
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Tec-City (GIFT City).
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 Ratnakar Bank limited (RBL) Bank announced the opening of its
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Indian Financial System Code (IFSC) Banking Unit (IBU) at
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Gujarat International Finance Tec-City (GIFT City).
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All about the Bharat QR: The QR Code Based Payment System
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In the bid to promote digital economy in the country, Government
of India has launched a new payment method using QR codes
named Bharat QR. It is launched after various new payment
methods like UPI payment and BHIM App for smartphones.
It is launched to boost digital transactions, that will make use of QR

codes system for payments across merchant outlets. It is the world's
first interoperable payment system.
Important facts related to Bharat QR

The National Payments Corporation of India (NPCI),
Mastercard, and Visa has developed it.
BharatQR code would require merchants to only display one
QR code instead of multiple ones.
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It will ensure that people do not suffer from card loss or card
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expiry problem.
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It was devised after the Reserve Bank of India's (RBI) direction
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in September last year, in order to make payments seamless for
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buyers as they just have to "scan to pay" for transactions
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instead of swiping their credit/debit cards.
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What is QR code?
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The QR code or Quick Response code is a two-dimensional
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machine-readable code, which is made up of black and white
squares and is used for storing URLs or other information. These
can easily be read by the camera of a smartphone.
Bharat QR Aim & Use

Bharat QR code aims at standardising the QR code payment
method through the country. For this, payment networks like
MasterCard, American Express, National Payment Corporation of
India (NPCI) and Visa have collaborated to promote wider
acceptance of the Bharat QR payment method.
However, after the introduction of Bharat QR code, a consumer can

simply open his or her banking app or BHIM app, scan the
merchant's QR code, enter the payable amount and enter the four
digit code to authenticate the transaction. The amount will be
directly transferred to the merchant‟s bank account once the
transaction is complete. In short, this will provide customers with
an easy scan and pay option irrespective of their card type. The
method would eliminate the need of PoS machines on a merchant
outlet. This will help merchants in avoiding investments in PoS
machines and the transaction fees charged by the banks for
transactions through the PoS systems.
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Part 3: Important Banking & Economy Questions for the SBI PO
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2017 Interview
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Q. What is a Bank?
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Ans. Bank is a financial institute where we deposit the money. The
or
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bank accepts this money for the purpose of lending and repays it
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on demand.
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Q. What is the major functions of any bank?
Ans. Major Functions of bank are:-
Accepting deposits from public or firm.
Lending money to public.
Transferring money from one place to another.
Credit creation.
Act as trustee.
Keep valuables in safe custody.
Q. In how many types you may categorize the bank in India?

Ans. We can categorize the banks into five categories :
Central bank (RBI)
Public sector banks
Private sector banks
Co-operative sector banks
Development bank or financial institution
Q. What are scheduled commercial banks?

Ans. Scheduled commercial banks are those banks in India which
were included in the second schedule of Reserve Bank of India
(RBI) Act, 1934.

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Q. Under which act-were the State Bank of India and its
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subsidiaries nationalised?
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Ans. The State Bank of India and its subsidiaries where
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nationalized under SBI Act, 1955.
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Q. What is non-scheduled bank?
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Ans. Non –scheduled bank in India means a banking company as
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defined in clause (C) of section 5 of the BANKING REGULATION
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Act, 1949.
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Q. What are Co-operative banks?
Ans. Co-operative banks are organised under the provision of co-
operative credit society‟s law of state. The major beneficiary of this
bank is agricultural sector.
Q. In which year Indian Banks Association (IBA) was formed and

initially with how many members?
Ans. IBA was formed in 26 Sept. , 1946 with 22 members.
Q. What is CRAR?
Ans. The Reserve Bank of India had made a norm that every bank
has to maintain an adequate amount of capital on continuous basis
and this adequacy of capital is measured in terms of CAPITAL TO
RISK-WEIGHTED ASSEST RATIO which is also known as CRAR.
Q. What is the minimum amount of money that should be

remitted through RTGS?
Ans. We can remit Rs 2,00,000/- minimum through RTGS.
Q. Who insures the banks in India?

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Ans. Deposit Insurance and Credit Guarantee Corporation
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(DICGC) insure the banks in India.
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Q. Which committee had worked for the recapitalisation of
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Regional Rural Banks (RRB‟s)?
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Ans. K.C. CHAKARABARTY worked for the recapitalisation of
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RRB‟s.
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Q. Which bank comes under the category of APEX banks.
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Ans. Reserve Bank of India (RBI) and National Bank for Agriculture
and Rural Development (NABARD) come under the category of
APEX banks.
Q. What do you mean by CASH CREDIT?

Ans. CASH CREDIT is the system formed by the banks which
allows the borrower to draw amount up to the specified limit.
Q. What do you understand by OVERDRAFT?

Ans. OVERDRAFT is the facility granted by bank to the customers
of current account by which they draw the amount more than the
credit balance in their account.
Q. How many types of debit card do the banks provide to their

customers in India?
Ans. The following are the types of debit cards provided by the
banks in India are:-
VISA CARD
MAESTRO CARD
MASTERCARD
RUPAY CARD etc.

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Q. How many type of deposits does Indian banking deal with?
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Ans. The Indian banking industries deal with the following types of
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deposits:-
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Term deposits
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Demand deposits
or
Current deposits
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Savings deposits
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Q. Classify the business of banking?
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Ans. Business of banking can be classified into four categories:-
Retail banking business
Wholesale banking business
Treasury operations
Other banking activities
Q. What are the major products of the banking industry?

Ans. There are three major products in the banking industry:
Deposit products
Credit products
Customized banking services
Q. Which Act allows the bank and financial institutions to

auction the properties when borrower fails to repay the loans?
Ans. SARFAESI Act, 2002 allows the banks and financial
institutions to auction the properties when borrowers fail to repay
their loans. The acronym for SARFAESI is “Securitisation and
Reconstruction of Financial Assets and Enforcement of Security
Interest”.
Q. What is the significance of IFSC code?

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Ans. The acronym for IFSC is “Indian Financial System Code”. It is
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an alpha numeric 11 digit codes which uniquely identifies a
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particular bank branch in India.
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Q. What are the objectives of SLR?
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Ans. Objectives of SLR:
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To restrict expansion of banks credit.
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To increase banks investment in approved securities.
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To ensure solvency of banks.
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Q. How many types of subsidiaries does RBI have?
Ans. RBI has two types‟ subsidiaries
Fully owned subsidiary
Majority stack subsidiary
Q. Name the fully owned subsidiaries of RBI?

Ans. RBI has three fully own subsidiaries:
National Housing Bank(NHB)
Deposit Insurance and Credit Guarantee Corporation of
India(DICGC)
Bharatiya Reserve Bank Note Mudran Pvt. Ltd.(BRBNMPL)
Q. Name some negotiable instruments.

Ans. The negotiable instruments include
 promissory note
 bill of lading
 Bank draft/ pay order/bankers cheque.
 Railway receipts
 Dock warrant
 Warehouse receipt
 Certificate of deposit
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 Commercial paper
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 Treasury bills
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 Hundi
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Q. What are the features of Negotiability?
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Ans. Features of Negotiability:
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Freely transferable by delivery (when it is bearer).
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Freely transferable by endorsement (when it is an order
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instrument).
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The transferee taking the instrument in good faith.
Q. What is Promissory Note (PN)?

Ans. It‟s an instrument in writing which contains an unconditional
undertaking signed by the maker to pay a certain sum of money to
the order or the bearer of instrument. The Promissory Notes
require being stamped ad per Indian Stamp Act.
Q. How many types of Promissory Notes are there?

Ans. Types of Promissory Note:
Demand Promissory Note - The Promissory Note which is
payable immediately on demand is called “Demand
Promissory Note”.
Usance Promissory Note - The Promissory Note which is
payable after a predefined definite period is called “Usance
Promissory Note”.
Q. How many parties are required in Promissory Notes?

Ans. Basically it requires two parties. The one is maker who
promises to pay and the other is payee to whom it is payable. For
example a person take loan from the bank then the “person” is the

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“maker” and “the bank” is “payee”.
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Q. What is “Money Laundering”?
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Ans. The process of concealing the source of money is called money
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laundering. E.g. whenever illegal money is converted into legal
or
money is also known as Money Laundering. According to Section 3
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of the PMLA Act 2002 (Prevention of Money laundering Act)
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“Whosoever directly or indirectly attempts to indulge or
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knowingly assists or is involved in any process or activity
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connected with the proceeds of crime like terroist activities etc. and
is projecting it as the untainted property shall be guilty of the
offence of money laundering”.
Q. What are the common factors of “Money Laundering”?

Ans. Generally there are four factors of money laundering:
The true ownership and real source of money is not revealed.
The launderers change the form of the proceeds in order to
shrink the huge volume of cash generated by the initial unlawful
activity.
The trail left by the process is not known so that it make it
difficult to follow the money from the beginning to end.
Constant control is maintained on the money.
Q. What are the stages of “Money Laundering” process?

Ans. The following are the stages of “money laundering” process:
1. Placement stage:-It is the first introduction of entry for funds
derived for any criminal activities.
2. Layering/Agitation stage: - The object of this stage is to prevent
the tracing of illegal proceed. It creates a complex network of
transactions which attempts to not reveal the link between the
initial entry and the end of the money laundering cycle.
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3. Integration stage: - This process achieves the appearance of total
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legitimacy of funds thereby it refers to the return of funds to the
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legitimate economy for later extraction.
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Q. What is “Mobile Banking”?
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Ans. Mobile banking provides us the ease of carrying out certain
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banking transactions through their mobile phone. This facility is
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provided by the banks. Many operations can be performed by
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using mobile banking like checking account balance, other account
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etc
Q. What is “Electronic Fund Transfer System” (EFTS)?

Ans. Electronic fund transfer provides us to transfer fund
electronically replacing the paper instruments. The electronic fund
transfer is fast and easily available. It saves time of customer‟s
standing in queue. The products of EFTS includes:-
WTs- wireless transfers.
ATM- Automated Trailer Machine
CDs- Cash Dispensers
POS- Point of Sale terminals
Home banking
Q. What is “Smart Card”?

Ans. The Smart Card is an Integrated Circuit Card (ICC) to store
information. It is a cash card or we can say „electronic purse‟ which
is a pre-paid cash card. The card provides an option to the
customers for debit and credit facilities. These cards can be
reloaded by ATM or by telephone. It reduces the need of carrying
cash for shopping and enables the card holder to increase the
amount at any time. It is of two types:
(a) Intelligent Memory Chip
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(b) Memory Processing Card (MPC) which are used by Financial
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Institutions
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Q. What is “Credit Card”?
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Ans. It is a plastic card of payment, USE NOW PAY LATER. The
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customer gets some credit on the card which he can use for
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shopping, internet banking etc. The credit cards are of different
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types having different credit limits depending upon the bank. The
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user gets reward points and also in some cases cash back facilties.
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Reward Points can be redeemed into discount coupons of reputed
brands/ companies. The plastic card holder may not be having an
account with the particular card issuing bank.
Q. What is “Debit Card”?

Ans. It is a plastic card used to obtain cash, purchasing goods and
services by automatically debiting the payment to the card holder‟s
bank account. USE NOW PAY NOW.
Q. What are the advantages of “Debit Card”?

Ans. The advantages of Debit Card:
No need to carry cash.
Quick and less complicated than using cheque.
Used for withdrawal of cash.
It can be issued to any individual having bank account
Q. What are Payments Bank?

Ans. A payments bank is a type of non-full service niche bank in
India. A bank licensed as a payments bank can only receive
deposits and provide remittances. It cannot carry out lending
activities.

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Who is the governor of RBI?
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As of today, you can answer this as, Mr. Urjit Patel is the 24th
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governor of RBI. Before taking reins as RBI governor he was an
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officer on special duty in RBI. He has also served as economic
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advisor in PMEAC.
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Key points:-
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In SBI interviews, you must have a quick read about the
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prominent personalities of banking industry, especially governor
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and deputy governors of RBI.
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You must address the name of personalities by using Mr. or
Madame in case of male and female respectively.
Try to keep yourself updated about the recent happenings of at
least the month prior to interview.
What do you understand by the GDP of the country?

The final value of all the goods and services produced under the
geographical area of a country is the Gross Domestic Product of
that country. GDP is calculated at consumption, investment and
exports and imports are subtracted from the sum of these three.
What is a Non -banking Financial Company (NBFC)? Difference

between NBFC and banks?
A NBFC is a company registered under the companies act, 1956
which is involved in the business of loans, shares/stocks, etc. Non-
banking financial companies are financial institutions that provide
banking services, but do not hold a banking license. These
institutions are not allowed to take deposits from the public.
NBFCs do offer all sorts of banking services, such as loans and
credit facilities, retirement planning, money markets, underwriting,
and merger activities.
The basic difference between bank and NBFC is:-
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They can‟t accept demand deposits.
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They are not a part of the payment and settlement system and
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can‟t issue cheques drawn on themselves
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They are not registered in the banking act and don‟t have a
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banking license.
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They don‟t have to maintain CRR, SLR or CASA like banks.
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What is the difference between nationalized banks and private
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banks?
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A nationalized bank is owned by the govt. of that country and is
also known as public sector bank whereas a private sector bank is
owned by an independent individual or company.
What do you mean by term “CASA” related to bank?

CASA stands for Current Account Savings Account. The CASA
ratio shows how much deposit a bank has in the form of current
and saving account deposits in the total deposit. A higher CASA
ratio means better operating efficiency of the bank because on
current account there is no interest payable whereas on savings
account a tiny 3.5% interest is payable by the bank. CASA ratio
shows how much of the deposit of the bank comes from the current
and savings deposit.
What is the difference between cheque and demand draft?

Cheque is a negotiable instrument which is paid to the bearer but a
demand draft is always payable on order. Since, it is not precisely
mentioned in Section 13 of Negotiable Instrument Act 1881.
What are the parts of banks‟ capital?

Bank has following parts of capital:-

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Tier 1 capital:- Paid up capital (core capital) + Reserves (owners
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or promoters‟ fund)
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Tier 2 capital:- Secondary Capital (borrowed funds) + general
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loss reserves + subordinated term debts + undisclosed reserves
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(can‟t be maintained in India)
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Tier 3 capital: - same as tier 2 capital but with a higher amount in
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order to face the market risks of the bank.
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What is the meaning of “base rate”?
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Base Rate is the minimum rate of interest which a bank has to
charge from its customers and a bank can‟t sanction loan on a rate
below the base rate. This rate came into effect from July 1 2010.
Before Base rate there was Basic Prime Lending Rate or BPLR
introduced in 2003. It was replaced with Base Rate because in BPLR
banks had an option to loan their special customers below BPLR.
Banks may choose any benchmark to decide on the base rate. The
exceptions of base rate are:-
Agriculture loans
Govt. sponsored schemes
Staff loans
Only under the above cases, bank can lend below base rate.
We hear regularly that all bank branches are turning CBS. What
is CBS?
Sir, CBS stands for CORE banking solutions under which the
branches of the banks are interconnected with each other through
intra net with a central database server. Now, with this facility, a
person having an account in a certain branch of the bank can
operate from any other branch of the same bank. He need not visit
the same branch to operate his account. The CORE word in CBS
stands for Centralized Online Realtime Exchange.
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What is Para Banking?
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Para Banking includes all the services provided by banks apart
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from day to day banking. For example: - Debit cards, Credit cards,
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Life Insurance products, Cash Management services etc.
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What is the difference between Micro finance and micro credit?
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Micro credit is giving a small amount of loan to the customers
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whereas Micro Finance is a wide term. It includes small loan +
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training on financial matters. In other words, Micro finance=
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Microcredit + Financial Literacy.
What is Cash Reserve Ratio (CRR)?

CRR is the part of Net Demand and Time Liabilities (NDTL) or
cash of the bank deposited with the RBI. A higher CRR makes loans
expensive as liquidity is controlled by RBI. NDTL is the deposits of
the customers with the bank. Net demand liabilities are deposits
payable on the demand on customer, or when the customer wants.
Ex:-current account, savings account. Time liabilities are the
deposits which are payable only on a specific time or after a period
of maturity. For ex:- Fixed deposits, Recurring Deposits.
What is Statutory Liquidity Ratio (SLR)?

SLR is the amount of NDTL which a bank needs to maintain in the
form of cash, gold or govt. securities before providing credit to its
customers. Through SLR, RBI makes sure that bank always have a
reserve amount out of their deposits to meet any future
contingencies.
What is Marginal Standing facility (MSF)?

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In MSF, banks borrow money from RBI for upto 24 hours. MSF is
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always 1% above the repo rate and banks can draw only upto 2% of
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their NDTL from RBI.
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What is Term Repo?
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Under term repo, RBI lends to banks through auction of funds. The
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minimum interest charged has to be above the repo rate and there
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is no limit for maximum interest rate because auction is made on
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the rate of interest.
What is white label ATM?

It refers to ATMs owned by corporate or private operators seeking
to earn a commission by banks for transactions performed by their
customers. For ex:- INDICASH by TATA group.
What is brown label ATM?

It refers to the ATMs where investment, installation and
maintenance is by a private operator but the license and branding
is by a commercial bank.
Tell us something about NABARD and its functions.

NABARD was established by an act of Parliament on 12 July 1976
as National Bank for Agricultural and Rural Development. It is the
apex bank to provide rural credit and monitor the RRBs. The main
functions of NABARD are:-
Provide refinance to RRBs and other banks in rural areas for
lending.
Acts as a subsidiary for RRBs and co-operative banks.
It has two subsidiaries:-
NABFINS:- NABARD financial
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NABCON: - NABARD consultancy.
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What is the difference between FII and FDI?
bo
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FDI or foreign direct investment is an investment that a parent
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company makes in a foreign country. FII or Foreign Institutional
or
Investor is an investment made by an investor in the markets of a
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foreign nation. FII can enter the stock market easily and also
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withdraw from it easily. But FDI cannot enter and exit that easily as
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FDI only targets a specific sector.
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What is the CAD? What is Fiscal deficit?
CAD or current account deficit is the difference between the
imports and exports of a nation in one financial year whereas fiscal
deficit is the difference between total revenue and expenditure of a
nation.
What is inflation and deflation?

Inflation is the increase in the price of goods and services due to
more demand and less supply. In inflation, there is more liquidity
in market which has to be controlled to reduce the purchasing
power of customers. Deflation is the decrease in prices of goods
and services due to more supply and very less demand. In
deflation, there is lack of liquidity in market which results in very
weak purchasing power of people.
What is Capital Adequacy Ratio? What is DEMAT account?

CAR is the proportion of capital to the banks‟ risk. DEMAT
accounts are those in which shares, securities and insurance
policies are kept in electronic form.
What is budget?
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The „Budget System‟ in India was first introduced on 7th April 1860
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by James Wilson, the first Indian Finance Member. The budget is
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the „Statement‟ of the estimated receipts and expenditure of
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Government for that year. This „Statement‟ is called the “Annual
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Financial Statement”.
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What points are covered in the “Annual Financial Statement”?
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The “Annual Financial Statement” consists of:
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Statements of expenditure.
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Ways and means to raise the revenues.
An analysis of the actual receipts and expenditure of the closing
year.
The causes of any surplus or deficit in relation to such year.
An explanation of the economic policy.
Spending program of the government for the coming year.
Prospects of revenue.
What is “Consolidated Fund”?

It is the most important of all government funds. All government
expenditures are made from this fund except the items met from
„Contingency fund‟ and „Public Account Fund‟. No money can be
withdrawn from this fund without Parliament‟s approval.
What is “Contingency Fund”?

Any urgent expenditure is met from this fund. Rupees 500 crore
fund is at the disposal of the president. If any unforeseen
expenditure is incurred from this fund requires approval from the
parliament and amount withdrawn is returned to the fund from
consolidated fund.

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What is “Fiscal Deficit”?
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It refers to the excess of all expenditures, which includes the capital
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and revenue plus net lending over total revenue receipts and
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external grants. This explains the total expenditure and borrowing
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by the government.
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ss
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9. Dos and Don‟ts for Interview
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Proper preparation will help you a lot to crack personal interview.
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Work on your personality and knowledge that is most important
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for almost every job interview process. You must have your field
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related knowledge; you must be well versed with banking
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awareness, G.K. , Current Affairs and General Awareness. Also
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visit the bank‟s official website and learn facts about the
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organisation. You can also practice with mock interviews and be
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prepared with answers to some general questions like “Tell us
about yourself” or “Why do you want join banking sector?”
Dos for Banking Interview
 Be punctual. Make sure that you are 10 minutes early.
 Dress in formals appropriately. Extremes in fashion or very
casual clothes should generally be avoided. Look neat and clean.
 Bring a copy of all relevant documents, so you can refer to them
if necessary. Read the instructions of the interview call letter
carefully and bring the necessary things mentioned in it.
 Make eye-contact. Remember to talk to the person/ interview
panel (not the top right hand corner of the room or at their
shoes).
 Make sure you fully understand the question and query any
point about which you may be doubtful and express yourself and
your views clearly.
 If you are being interviewed by a panel, ensure that you direct
your answer to the person who asked the question, while still
including the other interviewers by making brief eye contact.
 Ask questions when the interviewer asks you if there is any
query in your mind. But that shouldn't be vague.
 Show enthusiasm for the company and the position.

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 Make sure that you always present your skills in a positive light.
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Even when describing your weaknesses you should always show
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them what you are doing to rectify it.
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 Make sure that you have an idea about where you want to be in
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the future and can relate the future goals to your application for
or
the present position. You must be able to answer the question
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"Where do want to be in five years‟ time?" or "How do you plan
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to become successful in this job?"
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Don‟ts for Banking Interview
 Don't assume that an invitation to a job interview means that you
have a job offer “in the bag.” That‟s wrong and a big mistake and
the farthest thing from the truth! You should be confident but
NOT Overconfident.
 Try not to answer questions with a simple “yes” or “no.” Explain
whenever possible. Describe those things about yourself that
showcase your relevant talents, skills, and determination. Give
detailed examples of your accomplishments.
 Never respond to an unexpected question with an extended
pause or by saying something like, “wow, that‟s a good
question.” A short pause before responding is okay. Ask for a
clarification if you don‟t understand the question or want
guidance on what is an appropriate response. Remember these
are elder professionals in interview panel; you should be
respectful, humble and polite with your opinions.
 Don't wear too much perfume, makeup or aftershave. Your
appearance shouldn't be too flashy or unique. Wear strictly
formal cloths.

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10. Interview Experiences
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1. SBI PO 2016: Interview Experience-1
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Hello Friends..!! I am ARUN K. MISHRA.
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Today I am going to share my SBI PO 2016 interview experience
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with you all. I hope it will be helpful to all the aspirants who are
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gearing up for the same.
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Interview Venue- SBI LHO Complex, New Delhi.
I was supposed to report at the venue at 8 am on 9th of September.
I reached there at 8 am and the document verification was over by
8:45 am. Then we were asked to go for the Group Discussion (GD)
round.
Group Discussion
Two gentlemen were monitoring the GD process.
Topic of the GD was: “Villages: Our Strength or Weakness”?
There were a total of 10 candidates in our group, 3 females and 7

males. Each one of us was given time of 5 minutes, to recollect his
thoughts. After that we were asked to discuss the topic collectively
in a time limit of 20 minutes. We all expressed our view points on
the topic individually and then initiated the debate. Every
candidate got the chance to speak. After a healthy debate we
reached to a consensus that Villages are our strengths as our roots
lie there only.
Prioritisation

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In the next part, we had to prioritise a set of 8 qualities in order of
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personal preference.
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The topic was, "Traits required for Good Customer Handling."
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• Knowledge
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• Proactive attitude
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• Helping attitude
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• Meeting people
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• Manipulating
• Diplomatic nature
• Tech savviness
• Positive thinking
The Panel again gave each one of us 5 minutes for individual

thinking and 20 minutes to collectively discuss the topic and come
to a consensus about the most and the least desirable quality.
Although no consensus could be reached, the discussion fared
reasonably well. After the GD process got over, we waited for our
interview.
Personal Interview
I had to wait pretty long before I was finally called in for the
interview. It was 2:40pm by the clock. The panel, contrary to my
belief, seemed very cheerful and interested in my answers even
after a long day of interviewing people. The panel consisted of a
lady and 3 gentlemen. They were all Retired bankers. The PI went
on for about 10-12 minutes. I was not asked to introduce myself to
them, the panel meant business right from the word go.

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I knocked at the door and asked, "MAY I COME IN?"
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I wished them all, "Good Afternoon Ma'am and Good Afternoon
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Sirs."
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The lady asked me to have a seat.
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I thanked her in return.
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F1: ARUN k Mishra…!!!
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I: Yes, ma‟am.
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F1: What did you do after completing your graduation?
I: I worked in a core industry for 3-4 months, but unfortunately that
company shut down.
F1: (Laughing) and said the company closed down as you joined it!
I: I answered smilingly, no ma‟am, they were already having some
issues with raw materials.
F3: You searched for the job on your own or it was a college
placement?
I: No ma‟am I had searched it on my own.
M1 (CHIEF): So, your hobby is cooking, when do you cook?

I: When I feel bored or do not have anything else to do. I cook for
amusement.
M1 (CHIEF): Who do u cook for? (Smiling)

I: I smiled and answered, “Sir, for myself and family.”
M1: Are you aware of the things going around you?

I: Yes Sir.

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M2: What is the major problem that public sector banks are facing
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these days?
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I: Sir, currently NPA is the biggest problem.
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M2: What is NPA?
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I: Interest and/or installment of principal that remains overdue for
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a period of more than 90 days. Then I told them about the 4 Assets
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(standard, sub-standard, doubtful, loss asset).
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M2: How to control NPA?
I: Sir, by enhancing our effectiveness in giving loans and regular
supervision of Loans.
M1: What is the Tagline of SBI?

I: Sir I am not able to recall it at the moment, though I read it for a
number of times somewhere or the other.
F1: Smiled
M1: Okay Arun, now-a-days, unemployment is one of the biggest

problems that our country is facing. Tell us something about the
schemes launched by the government in the past 2 years, in order
to deal with this problem.
I: Sir, our government has launched many schemes like MAKE IN
INDIA, SKILL INDIA, START-UP INDIA STAND UP INDIA, etc.
to deal with it.
[I described 3D‟s also that are DEMOCRACY, DEMOGRAPHIC
DIVIDENT, DEMAND.]
M1: Some tax exemptions have been made in Start-up India, do you
know about them?
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I: Yes sir, its capital gain tax.
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ah
M1: (Looking at my resume) so, you were mess in charge of your
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college hostel, how did you manage to deal with it?
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I: Yes Sir, I was in charge, there were 800 students, I handled them
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for 2 years.
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M1: (Smiling) It would have been like a proper job, and must have
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been very challenging also, wasn't it?
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I: Yes, sir it was a little difficult to handle 800 students but I have a
strong convincing and leading power so I could handle it very
easily.
M1, F1 were impressed (couldn‟t see M2 and M4's reaction).
M2: Right now you are working with ********?

I: Yes sir I am working with ****** for my livelihood.
M2: What do you do there?

I: Told.
M1: Okay thank you Arun!
I: Thank you Sirs and Madam. Have a nice day Sirs and Madam
(Separately looking at the lady). I then left the room.
That‟s all about my GD & PI. I am hoping for the best.

I don‟t know what is going to happen when the results, but I wish
all the luck to every student who will be appearing for SBI PO GD
and Interview.
Thanks & Regards,

ARUN K. MISHRA.
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2. SBI PO 2016: Interview Experience-2
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Interview venue- LHO Chandigarh; Panel- 1; 10 AM
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It was the first interview of my life. I reached the venue at about
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8:30 in the morning. Document verification started at about 9 AM,
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staff was very cordial and friendly. I was not having Xerox copies;
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they helped me getting my documents Xeroxed. I then attested
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every single page and submitted.
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There were 10 candidates in our group, 4 Females and 6 Males.
Group Discussion
We all entered the conference room and were asked to have our
respective seats. There were 2 people who welcomed us and told us
about GD and Prioritisation round. There were two GDs and this
time it was a proper GD, no separate times were provided.
GD Topic: “Technology killing human imagination.”
Panel members told us that we could use any language i.e. Hindi,
English, or even any local language (Punjabi as my GD was in
Chandigarh) as per our convenience provided that it would not
lead to any communication barrier. We were given 5 minutes to jot
down the important points. GD continued for 20 minutes and I got
chance to speak 3 times. Every candidate in the group performed
well and it was a healthy overall discussion. At last I mentioned
that there should be a diplomatic solution. We came to a consensus
that technology is only reducing the power of imagination of

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humans, not killing it. We should rather focus on its positive
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effects.
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Prioritisation
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After that a paper was provided and we had 5 minutes to mark the
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things on priority basis. It had 9 points. We had to prioritise the set
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of 9 points in order of personal preference. That particular part
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went on for 20 minutes.
It was lunch time after that and we were asked to go to officers‟
mess and were served with delicious lunch.
Personal Interview
After that the interview process began. Interview panel was very
friendly. My turn came around 4:20 and it last for about 25 minutes.
The interview was bilingual (Hindi and English).
I entered the room.

Good evening Ma‟am(1) , Good evening sirs(3)!
M1:- Mr Ankush, have your seat.

Me:- Thank you Sir.
M1:- What is the meaning of your name?

Me:- Sir to retard something or to restrict something, kisi chiz ko
rok lagana.
M3:- Kis kis pe rok lagai bhai? (Everyone laughing)

Me:- Sir abhi toh nahi. Don‟t know about future. (Everyone
laughing)
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M1:- So, you are civil engineer, why banking after engineering?
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Me:- Sir do not have that much of interest in Engineering.
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M1:- Why did you pursue engineering then?
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Me:- Sir after 12th I was not mature enough. I chose to follow the
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crowd blindly but now that I know what I want to be, I want to
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work with an organisation where I get a chance to serve customers.
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To be honest Sir, I want to go for a white collar job. Apart from this,
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I want to play a part in the development of this nation and public
sector banks play an essential role in a nation‟s development. (I
don‟t know if I could satisfy interviewers with my answers or not.)
M1:- Your father is mechanic?

Me:- Yes Sir, in state transport...posted in Shimla.
M1:- Okay, so what is NABARD?

Me:- National Bank for Agriculture and Rural Development,
manages RRB, RIDF. I then explained about RIDF and PSL‟s failed
target.
M1:- How do they make use of this fund?

Me:-They provide loans to Central Government. I also gave an
example to explain the same- Recently NABARD sanctioned loan of
26 crore to Punjab for solar power.
M1:- Do you think reservation is justified?

Me:- I was quiet for a while, umm sir what should I say on it. (With
a smile on my face.)
M1:- No issues, present your view.

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Me:- Ok Sir, there were social disparities when our country got
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Independent and it continued for 10 years only. Now-a-days
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political leaders are using it as a means to fulfill their political
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needs. Reservation should be based on ones economic condition
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like that of creamy and non creamy system for OBCs. God has
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gifted the same brain to all. According to me, everyone whose
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annual income is less than 6 lakhs should be eligible for it
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irrespective of the castes they belong to.
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M1:-Subsidies should be there or not?
Me: Sir Subsidies should be rationalised and channelized so that it
only reaches to needy ones. We have DBT Mechanism at present.
M1:- So you are saying that subsidies should be there?

Me:- Yes sir, but only for those who are extremely poor. 150-200
rupees do not really matter to those who are earning 50k or more
per month but for the one who is economically weaker, every
single rupee matters.
M1:-What changes do you want in the pattern of IBPS PO?

Me:- Sir, IBPS is totally transparent. But I am not satisfied with the
pattern; there should be a Descriptive Paper also so as to check
one‟s computer proficiency. There should be GD so that managerial
skills could be checked. And Sir every year pattern is the same,
every year 5 syllogisms are there and so is the case with other
topics also. IBPS should adapt changes like that of SBI. IBPS
introduced sectional timing like that of SBI, such changes should be
introduced every year.
M1:- You are 2015 pass out...what were you doing since then?

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Me:- Sir in order to support my family, I‟ve been providing home
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tuitions. I also have my own YouTube video channel. I make videos
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for those who are preparing for banking services examination and
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monetise them with Google Ads that helps me earn 60-80 dollars or
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4-5 k in Indian currency.
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M4:- 4-5 k dollars daily?
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Me:- No sir, in Indian currency, monthly.
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M4:- oh!
Me:- and sir apart from that I am making use of associate
marketing. Like there is flipkart and when you tie up with them
they pay you 12% on every product. I explained about Quora, etc
and told them that I am earning a total of 8-10k monthly by this.
M1:- What is HDI?

Me:- Explained about it. UNDP, told them about 2 factors out of 3. I
also told them about India‟s ranking that was 130 (I also told them
that I was not sure about the rank). M1 explained the rest that is the
3rd factor.
Then finally he passes on the baton to F1 (Ma‟am)
F1:- What is SHG?

Me:- Explained about this and linked it to recent news.
She asked me just one question.
M3:- What is Govt. doing for agriculture marketing?

Me:- Told them about E-NAM and explained it by linking with my
family.

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M3:- What subsidies are available for agriculture?
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Me:- Sir on fertilizers, there is KCC...he interrupted
ah
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M3:- KCC is not a subsidy.
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ME:- Oh sorry you are correct Sir.
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M3:- What is the difference between Himachal apples and Kashmir
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apples? (As I am from Himachal)
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Here I made guesses only, but he was satisfied with my confidence
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Me:- Sir I exactly don‟t know but Kashmir apples are sour and
Himachal apples are sweet. There is a difference of sizes too.
M3:- Where do best apples come from?

Me:- Sir, apples from Kinnaur are the best.
M4 : (Rude guy from south India), his accent was not easy to
understand.
M4:- What is e-commerce?
I got a bit confused as in 1st go I could not interpret what he had
asked.
Me:- Told about e-commerce. Here I started to describe it with
respect to banking but he interrupted, no no no, only e commerce.
Then I came on track and explained it well.
M4:- E-commerce websites?

Me:- Flipkart, Amazon, Paytm, Ebay and many more.
M4:- How do they conduct their business?

Me:- Sir, Imagine just for a second that I am a CEO of flipkart and
person whose name is X is having gift shop. I will tie up with him

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and when I receive an order, he will deliver it on my behalf. Then
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he will keep his share and transfer my share to me.
ah
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Ok so your interview is over. (They did not say verbally but with
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gestures.)
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Ok thank you sir- to M1 first as baton was in his hand. At last I
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concluded with saying “NAMASHKAR to all.”
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At last I don‟t know what‟ll happen, but I wish luck to all those
appearing for SBI PO GD and Interview.

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3. Bank of Baroda PO 2016
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Personal Interview
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Interview Panel: (4 men, 1women)
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Entered around 5.30 PM
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Entered with a smile, and said good evening Sirs, good evening
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Ma‟am. Everyone greeted me back.
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M1: As I sat with a smile, he said, “oh my god, you are smiling, you
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don't look tensed.”
ME: Sir, I have been waiting since morning. In the meantime, all
my tension completely disappeared. (He was laughing.)
M1: Okay what were you doing outside? You discussed with your
friends about what we asking in here?
ME: Yes sir, I did.
M1: what did they say?

ME: They said you were asking about Brexit, NPA, UPI and their
hobbies. (Everyone one was smiling).
M1: What else did they say?
ME: Sir, they said you were all nice and had pleasing personalities
(everyone laughed and asked, “Is it so?”)
M1: You must be knowing Ramanujan (as I had maths as my

background). Tell me that one thing that he was famous for.
ME: Silent.
M1: It was, it was something (bravo, I get know that he himself

doesn't know the answer.)

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ME: Sir Sir, It was Fibonacci series (with a serious face and later I
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got know that Fibonacci series was found by Fibonacci) thank god
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they didn't know much about mathematics.
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M1: Yes yes, very Good.
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M2 : Okay why didn‟t you go for teaching (as I was an MSc.
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graduate )? It provides you with a good in hand salary without
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much of pressure.
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ME: Sir, my parents are already teachers, so, I just didn't want to go
with the same profession. (Looked satisfied)
M3: Okay let‟s come to banking, what is the difference between a

credit card and a debit card?
Me: Nailed it (everyone 100% satisfied).
M4: Okay you are a science graduate but we will ask you questions
from arts. So, who was the first home minister of India?
ME: Big silence (I was about to get nervous.)
M4: No no… don't worry, you answered well for all the questions,
so I just want to corner you. (Smiled)
F1: Okay teach us with some tricks for mathematics.
Me: I might need a pen and a paper.

F1: Just say it, square or cube?
ME: 25 square (2*3 = 6, 5 square is 25 so its 625)

F1: Good good. (I was expecting that only.)
M1: Basically math students are genius.

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F1: No no, not all of them (she was facing me, but then she said) no
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no I am not talking about you, you are good. (Everyone laughs)
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M1: Okay that is it, All the Best.
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Overall I felt it was an average performance. I request you all not to
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keep anything in mind. Go free, tell them what first comes to your
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mind. They can easily understand if you are trying to fake things.
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They keep a note on how genuine your answers are. Relax, go and
talk to them just in a way how you talk to your friends. You will
rock it.
Group Discussion
GD started at around 3:30. (As ours was the last batch.)
This was my first GD, the topic was 'Marketing in banking sector'.
It was okay level and it went on for 15 minutes.
TIPS (GD) : Listen guys, Don't ever think others are speaking better
than you. As per my observation, you need have good eye contact
with all the persons present in the group. The way you speak
matters a lot more than what you speak. It is very important to note
that they were giving 1 minute to every individual to keep his own
point of view on the topic in the end. Here is what you need to do,
as I saw that everybody was talking only about Pros(advantages) of
marketing, nobody talked about disadvantages of marketing, so
finally I concluded with some points in disadvantages.

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So whatever the topic is given to you, most of the people will speak
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of things that are very common, mostly only on one side, but if you
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are able to think something different about it, do share it with them
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as it helps you showing them the uniqueness in you answer as well
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as your personality. That was my GD experience. All the best!
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Regards,
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NARENDIRAN C
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4. IBPS SO (IT Officer) 2016 – UCO Bank
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I am Deepak Kumar, I‟ve done B.Tech (EC) and I am sharing my
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Interview Experience of IBPS SPECIALIST OFFICER (IT). My
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centre was in Bhuaneswar, Odisha.
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PROFESSIONAL EXPERIENCE:
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1. Worked 1 year and 6 months under BSNL/PGCIL NOFN
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PROJECT.
2. Research Fellow at DRDO Chandipur for 6 months.
3. Networking Associates under TCS for 6 months.
Date: 15-03-2016
UCO Bank
Shift: Morning Shift
I reached the venue on time, and I was feeling bit nervous but my
parents & friends blessings made me strong. I entered the Hall for
Document Verification.
Documentation went very smoothly and the officer asked that „you
are from BSNL/PGCIL where is your NOC?‟
I replied, „sir I left BSNL/PGCIL 6 Months back‟. And my
document verification process was completed.
In the queue I was 7th in my Panel. Ohh... God Seven is my lucky

number and this made me more feel positive. After some time they
called me to come near the Interview room. And finally the bell
rang and I went in (chanting in my mind ALL IZZ WELL)

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ME: May I come in
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PANEL: Yes....
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ME: Good Morning Mam & Good Morning Sirs
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PANEL: Good Morning, Have your seat.
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ME: Thank you
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M1: Deepak have you qualified in IBPS PO this year?
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Me: Yes Sir I qualified IBPS PO this year.
M1: What will you join then; as IBPS PO or SO?

ME: Sir as I am Engineering Graduate so always my 1st preference
will be IBPS SO.
M1: Good, Can you tell me what IT officer do in a Bank?

Sir an IT Officer in a bank plays a vital role as IT is the backbone of
banking technology. The role and responsibilities of an IT Officer
depends upon the section where he/she is deployed. IT Officers are
required by every bank nowadays in order to take care of its
software systems as these days almost everything is automated
through IT tools. IT Officers looks into the maintenance of servers,
databases and other networking aspects.
M1: Good, Any two IT Departments in a Bank?

Me: Sir ATM/CVM SECTION & NETWORKING SECTION.
M1: Satisfied with a smile and said Good now turn to F1 who look
like IT Officer.

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F: Deepak you have experience, so do you think your work
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experience will be helpful for bank?
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Me: Yes Madam my work experience will definitely help the bank.
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F: Why LINK failure occurs in a Bank?
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Me: Mam there was a problem in the router which led to the link
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failure. The router faced hardware problems which hampered the
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work.
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F: What is a Router?
Me: A router is a device that forwards data packets along networks.
F: Ok... (Smile)
M2: What is RTGS?

Me: Sir, Real-time gross settlement systems (RTGS) are specialist
funds transfer systems where transfer of money takes place from
one bank to another on a "real time" and on "gross" basis.
M2: Settlement in Real time mean?

Me: Sir, Settlement in "real time" means payment transaction is not
subjected to any waiting period.
M2: Satisfied said Very Good
M3: What was your project during B.Tech? Explain me in 3 lines

with Advantage and Disadvantage?
Me: Sir my project was INDUSTRIAL SPEED CONTROL OF DC
MOTOR BY USING ZIGBEE.
In this project we are controlling speed of a DC motor used in
Industry by using a wireless technology called Zigbee.
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ADVANTAGE: Very Cheaper as cost of parts was less and easily
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available.
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DISADVANTAGE: It can operate with very less amount of Data.
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M3: Good, Zigbee !!! Tell me about Zigbee Technology?
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Me: Zigbee Technology is a wireless protocol designed for small,
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low power devices data transfer.
M1: Speed of Zigbee?

Me: Sorry Sir I‟m not able to recall.
M3: Then what is the Difference between Zigbee & Bluetooth?

Me: Sir these are both wireless technology but Bluetooth are used
for large amount of data with complex structure like the media
files, software etc. Zigbee on the other hand has been developed
looking into the needs of communication of data with simple
structure like the data from the sensors.
M3: Very Good
M4: Why don't you opt For TCS, INFOSYS or any other IT Firm at
Bengaluru?
ME: Sir I always tried to get a Govt. Sector job as it is always stable
and as my father also is a Govt. Employee and has given 37 years to
serve the country and got many award for it. So my aim was
always to work in Govt. Sector.

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M4: Ok suppose, suddenly someone tries to hack into your banks
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database, then in such a situation what will you do?
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Me: If someone tries to hack into the database then at first I‟ll try to
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handle the situate myself and stop the culprit and then I‟ll repost
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ASAP to the higher officials and also the concerned staff and then
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also I‟ll call the Cyber Cell.
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F: Cyber Cell or police?
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Me: Mam Cyber Cell Department of the Police.
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All start laughing and said Very Good you saved the database from being
hacked and sent the culprit behind the bars as well.
M1: Hobbies?
Me: Sir Playing Cricket and Travelling.
M2: Cricket Nice... When is the first match of WT20?

Me: (Confused) Sir I guess its stating from today. I guess the
qualifier matches started from 7th
M2: Which 2 team have been qualified for Super 10?

Me: Sir Afghanistan & Bangladesh.
M2: Name the captain of Afghanistan team and its coach.

Me: Sorry sir I am unable to recall the name of the captain and
Afghanistan team‟s coach is Inzmam Ul Haq Hain.
M1: Deepak its Azhgar Stanikzai.

Me: Thank you Sir.
M1: Ok Deepak you may go now and All the best.

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Me: Thank u Sirs and Madam
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All smiled and said all the best.
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Overall my Interview took 15 minutes and My Interviewers are all
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supportive. I did 138 in written hoping 120-125 score in written.
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This is my Interview Experience. Hope you enjoyed!!!
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5. IBPS SO (Rajbhasha Adhikari) 2016 – Bank of India
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IBPS SO (Rajbhasha Adhikari) Interview Experience 2017 (Noida,
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UP)
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Name: Hadke Sumedh Khushalrao
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Date: 9the March 2017, Time: 10:30 am
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Venue: Bank of India, Staff Training College, NOIDA, UP
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Panel: 3
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May I come in sir?
M3: yes come in...Have a sit.
- मैंने Thank you कहा और पहले मैड़म को Good morning कहा फिर sir को
Good Morning कहा. panel में 6 सदस्य थे.
M1: आपका नाम क्या है?

- हाडके सुमेध खुशालराव
- M1: इसमें से नाम क्या „हाडके ‟
- मैंने कहा मेरा नाम „सुमेध‟ है और „हाडके ‟ मेरा सरनेम है. साथ में मैंने यह भी
बताया फक महाराष्ट्र में SSC (10) Board exam में वहा पहले सरनेम ललखते है बाद
में नाम ललखते है. बीच में M2 बोले फक मेरे बेटे के प्रमाणपत्र में भी ऐसे ही ललखा है.
M2: तो आपके नाम का क्या अथथ है?

- मैंने कहा „सु-मेधा‟ „लजसके पास अच्छी बुलददमत्ता होती है‟. सब हसने लगे..
M2: आपके माता-लपताजी और भाई बहन के बारे में बताइये?

- मैंने कहा मेरे माता-लपता फकसान है और 2 एकड खेती है.
M2: तो सुमेध आप हमें पहले अपने ग्रेज्युएशन से पीएच. डी. तक के बारे में बताए:

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- मैंने कहा BA English Literature Nagpur University,
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MAHARASHTRA (2005-2008)
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- फिर MA, M..PHIL. and PhD (JNU, नई फदल्ली) से बताया.
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M3: अच्छा तो आप महाराष्ट्र से है, अच्छा आप PhD फकस लवषय पर कर रहे है?
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- मैंने कहा „An Evaluation of English-Hindi Machine Translation
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System‟ और Google , Microsoft के बारे में बताया.
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M3: आप Google और Microsoft पर काम कर रहे हो, लेफकन Google तो
अच्छा अनुवाद नहीं करता.
- मैंने कहा सर Google –Word to word translation करता है और अनुवादक-
भावानुवाद (Paraphrase Translation) करता है. आगे मैंने कहा फक
Google लवश्व की 103 भाषाओं में अनुवाद सेवाएं प्रदान करता है लजसमें भारत की
10 भाषाओं का समावेश उसमें फकया है.
M3: आपको तो Google में नौकरी लमल जाएगी, अगर लमल गई तो ये नौकरी छोड़
दोगे?
- मैंने कहा मैं सरकारी नौकरी करना चाहता हूँ, लजससे मुझे नौकरी की लनलितता
लमलेगी, मेरे लशक्षा का सही उपयोग होगा और बैंक में काम करने से सामालजक
सम्मान भी लमलेगा. आगे कहा मैं बैंक के ललए कु छ करना चाहता हूँ तो M5 बीच में
बोले..
-
M5: बैंक के ललए क्या करना चाहते हो?
- मैंने कहा मैं बैंक के ललए „English to Hindi Machine Translation System‟
बनाना चाहता हूँ जो बैंक के documents का अंग्रेजी से हहदी और हहदी से अंग्रेजी में
आसानी से अनुवाद करें . लजसका उपयोग सभी बैंक कर पायेंगे.
M5: तो आप चेन्नई आकर काम करोगे?

yo
ur
- मैंने कहा सर मैं देश के फकसी भी जगह काम कर सकता हूँ लेफकन मेरी प्रथम
sm
प्राथलमकता फदल्ली है. तो वो बोले क्यों? तो मैंने कहा फदल्ली में, मैं मुझे एक system
ah
bo
बनाने के ललए आवश्यक संसाधन आसानी से जुटा सकता हूँ लजसके ललए मैं अपने
ob
प्रोिे सर की सहायता ले सकता हूँ. तो वो समझ गए, उतने में मैडम M4..
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or
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M4: तो आप एक अनुवाद के ललए वाक्य ललख ललजीए?
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- मैने ललखा और अनुवाद कर फदया लेफकन मुझे „observation‟ के ललए हहदी में कोई
ss
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शब्द याद नही आ रहा था, बाफक मैंने ठीक अनुवाद फकया था.
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M4: सुमेध, राजभाषा अलधकारी का बैंक में क्या काम होता है?
- मैंने कहा मैड़म, राजभाषा अलधकारी, राजभाषा अलधलनयम 1963 और राजभाषा
लनयम 1976 का पालन करते हुए बैंक के कायाथलयी कामकाज हहदी में करने के ललए
बढ़ावा देता है, उसके साथ बैंक के द्सस्तावेजों का अंग्रेजी से हहदी और हहदी से अंग्रेजी
में अनुवाद करता है. 14 लसतम्बर को हहदी फदवस मनाना, हहदी सप्ताह, हहदी
पखवाड़ा का आयोजन करना तथा बैंक के कमथचाररयों के ललए कायथशालाओं का
आयोजन करना आफद कायथ करता है.
M3: आप इतने पढ़ ललए फिर आपको नौकरी नहीं लमली?

मैंने कहा सर मुझे अपनी पीएच.डी करनी थी इसललए नौकरी नही की, प्रोजेक्ट में
काम फकया.
M3: बोले All the Best लेफकन Google में नौकरी लमले तो चले जाना.
सभी सदस्य हूँस रहे थे. Panel में M6 ने कु छ नहीं पुछा वो मुझे देख रहे थे फक मैं कै से
जवाब दे रहा हूँ. M3 ही ज्यादा प्रश्न पुछ रहे थे, सभी प्रश्न के उत्तर हहदी में ही थे. कु छ
प्रश्न याद नहीं है. ये साक्षात्कार उन लोगों के ललए है जो राजभाषा अलधकारी का
साक्षात्कार अभी देने वाले हैं. उसके ललए कु छ संभालवत प्रश्न नीचे दे रहा हूँ लजसके
मादयम से आप तैयारी कर सकते है.

yo
ur
राजभाषा अलधकारी का कायथ, राजभाषा हहदी के ललए अनुच्छेद 343-351, राजभाषा
sm
लवभाग, राजभाषा लवभाग की हहदी पलत्रकाएं, गृह मंत्रालय द्वारा फदए जाने वाले
ah
bo
पुरस्कार, राजभाषा कीर्तत पुरस्कार, राजभाषा गौरव पुरस्कार, के लरिय राजभाषा
ob
कायाथरवयन सलमलत, नगर राजभाषा कायाथरवयन सलमलत, लवभागीय राजभाषा
.w
कायाथरवयन सलमलत, तथा राजभाषा लवभाग के क्षेत्रीय कायाथरवयन कायाथलय, संसदीय
or
dp
राजभाषा सलमलत के कायथ, राजभाषा नीलत, प्रबोध, प्रवीन प्राज्ञ परीक्षा आफद प्रश्न पुछ
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सकते है।
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All the best friends...

yo
ur
6. LIC AAO 2016
sm
ah
Interview experience at
bo
ob
LIC OF INDIA, DIVISIONAL OFFICE-1, JEEVAN PRAKASH,
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BHAWANI SINGH MARG,
or
JAIPUR :-03/05/2016 AT 9:30 AM
dp
re
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This was my 17th interview and I hoped things would turn out the
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way I wanted them to. There were 3 panel members including a
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man from south india. I wished them and was asked to take my
seat.I thanked them all and the session started.
M1:-A disaster took place recently in one of the states of India how
do you consider it to be an environmental catastrophe?
Answered:- Uttarakhand and the devastating effects caused by the
holocaust there. I also added how carbon is being released in the
atmosphere and explained its effect on agriculture and biodiversity.
I also added about pollution and depletion of natural resources.
M1:-What is COP21 and its impact? Explain.

Answered:-I said it is a conference of parties and was held in france
to deal with the climate change issues.
M1 added ok but are we not violating or contributing indirectly or
directly against this agreement. I said, "of course sir."
M1:- What do you know about IIP and its related growth effect on
economy?
Answered:-I forgot its full form but told that it predicts about the
growth of industries in the country.

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M1:-Ok if corporate tax is increased toh bhai ambani paisa kahan se
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layega?”
ah
I stopped, he laughed and said tell Mr. I was confused , he helped
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me and related it with production as more the manufacturing more
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the production and more will be taxes. He explained some other
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parameters, it was more or less a discussion.
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M1:-Expain RSBY.
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Answered:- Insurance cover for poor and vulnerable section of the
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society stands for Rashtriya Swasthya Bima yojana and told its
terms and conditions, packages, etc. He was satisfied and done
with his part.
M3:- Do you know how LIC encourages liquidity?

Answered:- By acquiring loans on policy. He didn‟t respond.
M3) What is KYC

Answered:-Know Your Customer, a guideline to stop fraudulent
people. You need a photograph, id proof and address proof.
M3:-What is money laundering? Do you have knowledge of

banking to support that?
Answered:-Layering, unethical approach to get tax benefits, and
money and asset hiding. I also explained about offshore banking
and parallel banking.
He then asked nothing but was expressionless.
M2:- Asked only current affairs:
1) Capital of Myanmar:- Replied Naypyidaw

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2) T20 winner women:- West indies he added. Who was defeated
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them? I said. "I forgot, sorry sir."
ah
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3) Ranji trophy winner:-Mumbai
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4) Recently appointed I&B secretary:-Ajay mittal
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He smiled and said ok.
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M1:-Once again started laughing. You are an engineer, and have an
analytical brain. You did your B.Tech in E&C but we didn‟t ask you
a single question on it because we ourselves don‟t know anything
about it. We just need surface idea of the discussion. It was a
sarcastic remark. I remained silent for some time.
M1:- We are just kidding. Ok tell us why you want to join insurance
sector.
Answered:- I take life as it comes to me. I m not obstinate in my
approach, I rather try to make best out of every opportunity.
He said .Best of luck for your career. You may go now.

yo
ur
7. IBPS RRB Officer Scale –I
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ah
17 Jan -Hotel Gagan Regency, Raipur
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ob
Panel-1, Afternoon shift - 1:00 (verification completed by 3:30
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though it was unsuccessful they allowed me for interview and my
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turn came at around 6:45 pm)
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As I entered the room, with a decent smile on my Face I wished all
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panel members Good Evening.
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Panel included 5 male members and one female.
M1 (oldest person of all) - Baithiye to Tiwari ji kya krte hai aap?

Me- Sir mene engineering ki h mechanical branch se.
Then they asked some usual questions that almost every engineer
faces in a bank interview- what were you doing in all those years
after your graduation; why do you want to join banking sector that
too in rural regional bank; you can easily get a job in a metro city
why don‟t you go for that; why are you willing to work in rural
area for mere 30k – 35k salary?
I answered to all those questions patiently with a smile.
M2- 2000 ka note dekha hai apne?

Me- Haan Sir.
M2- Kya kya features hain uske? (What are the features of Rs. 2000
currency note?)
Me- Sir ye note pink colour ka h jisme Gandhiji ki tasveer ab beech
m agai h is note ka paper quality changed hai aur is note ke piche
MANGAL YAN bana hua h.

yo
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M4- Achha Tiwari ji isme koi chip h kya micro chip bahot videos
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are the aisa kuch hai?
ah
Me- No sir as per my knowledge aisa kuch nahi h sir. Video jarur
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viral hue hai but chip nahi h.
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M1 (ye beech beech m ajate the puchne cross question)- To matlab
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aap news padhte hai aur dekhte h?
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Me- Yes sir
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M2- To khabre sunao abi kya chalra h. (Tell us about some current
affairs)
Me- Sir abi ATM withdrawal limit badh k 10000 hogai h. Niti ayog
ne humare desh ka growth rate 8 percent expect kia h. Bharat ne
England ko haraya.
M4- Achha ye GDP predict aur b koi kia h India ka?

Me- Ji sir hal hi me World Bank ne 7 pratishat kaha h. Morgan
Stanley ne 7.3 percent ( ye gk quiz me pdhe the islie boldia).
M1(agae ye sir fir se)- aur IMF?

Me- ab purana yaad ara tha i said 7.3 sir
M1(hanste hue)-6.6 aur RBI?

Me-7.1 percent.
M1(fir haste hue)- Matlab sab confuse hi hai abi k kya GDP ho
sakta h India ka.
M3- Delhi ka CM kaun hai?
Me- Arvind kejriwal ji.
M3- governor?

yo
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Me- abi nae bane hai sir Anil (surname yaad ni ara tha kyunki mcq
sm
m funny way m yaad krlete to real bhul jata). Sorry sir surname
ah
yaad ni ara Anil naam h unka.
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M3- Koi baat ni acha governor hota hai delhi ka?
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Me- NO Sir. Lt Governor hota h.
or
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M3 M4 M2 M5 ( sabne head nod kia) but M1( ye agle cross k lie
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taiyrai kr rhe the).
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M5-First electric bus bharat me kis company ki hai?
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Me- Ashok Leyland Sir.
Fir head nod krte hue sab.
M5- aur electric car? Agai hai? Agar haan to kis company ki?
Me- (blank kuch yaad ni ara tha) No sir.
M1(turant beech me bol pade akhir) apko pata ni hai ya aap naa
kehre hai?
Me- Sorry Sir meri knowledge k hisab se mujhe ni pata sir.
M1- Haan ye kahiye kyunki ye bahot pehle agai hai.

Me- Thank you Sir ab yaad rahega.
M1- Ok madam puchiye kuch aap.
F1- Digital Payment k bare me kya jante hai aap?

Me- Mam hum jo be transaction electronic star par karte hai unhe
digital payment kehte hai jaise ke cards se mobile se online account
se paise transfer karna.
F1- naya kya hua abi is me?
Me- Humare pradhanmantri ne BHIM app launch kia h jo ki
unified payment interface me kaam karta h jisse hum apne account

yo
ur
link kr skte hai aur usse hum kisi k bank account me turant paise
sm
transfer kar skte hai iske lie internet banking hona jaruri ni h.
ah
bo
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F1- Ap digital payment krte hai?
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Me- Ji maam aur lucky grahak scheme sun k aur jyada use kia kuch
or
mahino me.
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M1 ( inhe to ana hi tha ab fir haste hue)- to luckpati bane? (hanste
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hue sab members)
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Me- No sir is baar wo lucky grahak ni ban pae.
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They all laughed.
M1- sabko lakhpati banna h (apas m panel members se kehte hue).
(ab man se ari thi awaz bas kardo subah se bhukha hu :( aur kitna
kuch puchoge)
M2- Achha kaha se hain aap Tiwari ji?

Me- Bhilai.
M1(fir agae)- Collector ka naam kya h?
Me- Smt. R Shangeetha
M1-Deputy Collector?
Me- Vikash Naik ji (ye naam islie yaad elder sister ne btaya tha
unke batch mate the kaam agae aaj)
M4- Rural ke lie yojnae bataiye kya kya pata hai?

Me- Sir abi haal hi me Saur sujala yojana jo humare CG me hi hua
solar irrigation pump subsidised rate me kisano ko dia jara hai.
Fasal bima yojna.
M1(badi si smile dete hue)- thik h fir tiwari ji all the best apko ap ja
skte hai.
M2 M3 M4 M5 F1 ( ye sab b smile k sath)
Me- (khade hote lga pair b sath ni dere itne der baith k wo b jawab
dedie) Thank you ma‟am thank you sirs broad smile k sath.
yo
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Sabne kaha all the best.
sm
ah
Interview was taken in Hindi only. Throughout the interview they
bo
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were smiling and yes listening when I was trying to explain them.
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In my interview M1 he was the oldest so he was cross questioning
or
again and again. Overall it was a nice experience to me. But
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verification did not match as I have skin peeling problem and exam
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happened in winter season and now my skin is fine so that might
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be a reason I told authorities there, they too were supporting and
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told me not to worry and to just focus on interview as they are
allowing for it. After interview also I told the person who verified
my documents, he also asked me to relax and they will see to it if I
make it to the final selection.

yo
ur
8. IBPS RRB General Banking Officer Scale 2
sm
ah
NAME: Nilesh Tejsinghrao Moroliya
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INTERVIEW FOR: RRB General Banking Officer Scale 2
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VENUE: HOTEL VARSHA INN, AURANGABAD
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DATE: 17/01/17
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TIME: 8:30 AM
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I reached the hotel at 8:40 am. It took around 1 hr for biometric
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verification and documents verification. I was 7th in the queue for
the interview. The real interview started at around 11:30 am. Below
is my detailed interview experience.
INTERVIEW PANEL: There was a lady and 5 gentlemen. All of

them were senior bank officials above 50 years of age.
I wished good morning to all of them.
The lady asked me to have a seat.
Personal Questions:
M1: (I think he was the panel head as he was most senior among
them and asked maximum number of questions).
What is your name?

Sir, my name is Nilesh Tejsinghrao Moroliya.
M1: Where are you from?

Me: I belong to a small village of Nagpur district.
M1: Which place in Nagpur?

Me: Sir, Taluka Katol.

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M1: Tell us about your family?
sm
Me: Sir, my family includes six members, father, mother, younger
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brother, wife and 3 year old daughter. My father is a farmer.
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M1: Daughter? Ohh great!
or
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M1: Which crop is there on your fields?
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Me: Sir, wheat and chickpeas.
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M1: Do you go to fields?
Me: Yes Sir, I like to go there in my free time.
M1: Nagpur is famous for its oranges; do you grow oranges too on
your fields?
Me: We do not have oranges but we do have cirtus limetta trees on
our fields.
M1: How much did you earn from citrus limetta this year?
Me: Sir, 70000, but there was a fall in rates because of
demonitisation so the profit as comparatively less this year.
( I intentionally used the word demonetization as I was well
prepared with all the facts relating to demonetization.
Unfortunately they didn‟t ask any question on it.)
M1: To abhi kaunsa bahar chal raha hai?

(Unable to recall , I said so in a hurry.)
Me: Sir, winter bahar.

(Everyone started to laugh.)
M3: Ye kaunsa season hota hai bhai?

yo
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(Suddenly I recalled and said)
sm
Me: Sir, Ambiya bahar bolte hai use.
ah
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M2: Ambiya bahar kyo bolte hai?
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Me: Kyoki sir isi season me aam ke pedo ko bahar aata hai, isliye
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Ambiya bahar kahate hai.
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M1: What are you doing these days?
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Me: I have been working in Tirupati Urban Cooperative Bank as
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clerk cum cashier.
M1: For how long have you been working there?

Me: Sir, it‟s been 2 years and 3months.
M1: Which kind of work do you handle in TUCB?

Me: Sir I have worked in different fields of banking including cash,
clearing, deposits, RD/FD, social schemes and all the counter work
except loan.
M1: TUCB also participates in Clearing?

Me: Yes sir.
M3: Is it local bank?

Me: Sir the operational areas of bank includes Nagpur, Wardha,
Chandrapur, and Mumbai also.
M1: Where is the Head office of your bank?

Me: Sir in Nagpur.
M1: Is there any branch of your bank in Aurangabad?

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Me: Sir there used to be a branch in Aurangabad too, but the
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management decided to shut it down because it was facing losses.
ah
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M1: What is CD Ratio of your bank?
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Me: Sorry sir I can‟t remember.
or
(I could easily answer the question as I knew about the total
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deposit and total loan given by bank, but I could not remember the
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actual concept of CD Ratio.)
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M2: What is CD Ratio?
(Based on my previous question answer, M1 said)
M1: Tell us as much as you can remember.

Me: Sir, CD Ratio is related to loan. It is the percentage of loan
given by a bank.
M1: Right to some extent.

(Then he explained the whole concept.)
M2: What is Priority Sector Lending?

Me: Sir, RBI has made it compulsory for all commercial banks
including private sector banks to reserve some percentage of their
total loaning for priority se tor i.e. 40 %. Priority sector includes
agriculture and allied activities, farmers, land labours, artisans,
small and tiny industries. This sector requires to be provided
special attention by banks.
M2: where did you work before Tirupati Urban Cooperative Bank?
(I was not able to recall the full name of company, and fumbled. In
hurry I said)
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Sir, I was working With Cooperative society.
ah
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M2: Which cooperative society?
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(Now I pressurised my mind, and then said)
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Me: Sir, it was Samruddha Jivan Multistate Multipurpose
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Cooperative society.
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M1: There was news about Samruddha Jivan indulging in a fraud
case, what had happened actually?
Me: Sir, Cooperative societies can give loans but are not authorised
to accept deposits from public. SEBI had warned the director
against raising funds from small investors. Still the company
continued the practice of accepting deposits from public. It is now
under CBI scanner in connection with Odisha mega chit fund scam.
It was running the business of chit fund. According to SEBI, the
society was running the business without proper approval.
M1: Did you resign from the company because of this reason?
Me: No Sir, I had resigned from the bank even before the scam. I
have always been always inclined towards banking sector and I
used to prepare for banking exam a long time back. I wanted to join
a govt. bank, meanwhile I got an opportunity to work with TUCB
bank. So, in order to enhance my skills and experience in banking
area, I resigned from SJMMCS and joined TUCB.
(I expected a question," you were working as Officer in SJMMCS

then why did you join TUCB as clerk?"

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I had prepared for this question well in advance but they didn't
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ask)
ah
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M1: Is your bank like SJMMCS too?
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Me: Not at all sir, it is doing good.
or
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M1: You will be going to work for RRB in rural area, how will you
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help the farmers?
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Me: Sir being a villager and rural oriented person, I can understand
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the mindset of rural people. I am well aware of the problems faced
by them. (Interrupting me M1 said)
M1: What kind of problems do people in rural areas face?

Me: Generally they don‟t have sufficient money at the time of
kharip and rabi season, so take loans from money lenders who
charge high rate of interest. And sometimes they cannot even
harvest their investments as a consequence of droughts. In this case
they may tend to commit suicide.
M1: If the crops have been badly affected by droughts, and the
farmer is unable to pay off the loan. What will you do as a banker?
Me: Being a banker, I will make sure that all the schemes launched
by govt. related to agriculture reach to farmers so that they do not
go to money lenders.
As the RRBs are special purpose banks working for the
development of rural economy and upliftment of farmers, it will be
my responsibility to give more time to farmers to repay their loans
in case of drought and they do not get harassed (this is what money
lenders do).

yo
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M3: Which schemes have been launched by govt for farmers?
sm
Me: ARYA( Attracting Rural Youth towards Agriculture),
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Pradhanmanri Krishi Sinchai Yojana, Soil Health Card,
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Paramparagat Krishi Vikas Yojana, Price Stabilization Scheme,
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Krishi Dak Yojana.
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M1+L1: That‟s all. It was nice talking to you, you can leave now .All
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the best.
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This interview lasted for 15 minutes. Only the head of the panel
seemed to be enthusiastic and was asking questions rapidly. The
lady was given chance by the head of the panel but she didn't ask a
single question.
Thank you all.

yo
ur
9. IBPS PO 2015 – Bank of India
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Name : Prashant Pandey
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Date Of interview : 28th January 2016
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Venue : Bank of India, Staff Training College, Noida Sec 62
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Time : 8:30 am
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Panel : IX
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Friends, the preparation for the interviews started the day when
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Interview Call Letters were released by the IBPS. I would like to tell
you that I have also appeared for the last year interview and in this
1 year I have found many changes in myself. When a candidate
gets selected for an interview, the whole family starts preparing.
From attire to certificates, everything should be taken care of. Now
coming to today's event, I reached the venue a bit late. My turn was
second in the panel and here the interview starts.
Me: May I Come in Sir?

Panel: Yes, Please.
Me (Entered the room and softly closed the door behind)
Chairman: Please be seated.

Me: Thank You Sir.
Chairman: Pandey Ji, kaafi achhe lag rahe ho.

Me: Completely shocked (As no one ever said that to me) and said
Thank You Sir.
Chairman: Ham aapko kya bole, Pandey ya Pandey Ji (In a funny

way)?
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Me: Sir, jo aapko achha lage kyonki mere dost yahi bulate hain and
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first name rarely koi leta hai.
ah
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Chairman: Okay, fir ham aapko Pandey Ji bolenge.
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Me: Ji sir.
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Chairman: Ghar me kaun kaun hai?
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Me: Sir, mere parivar me 4 log hain. Papa, Mammi, Chhoti Behen
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and Main.
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Chairman: Papa kya karte hain?
Me: Sir, mere papa Ex-Serviceman hain and currently he is working
in Delhi Metro Rail Corporation Limited as Assistant Signal and
Telecom Engineer.
Chairman: Bahut achha hai. Vaise abhi DMRC ke chairman kaun

hain?
Me: Sir, currently DMRC ke chairman Shri Madhusudan Prasad
hain and Managing Director Dr. Mangu Singh hain.
Chairman: Achha Pandey Ji, aapne 2011 pe B.Tech kiya tha. Uske
baad ab tak kya kya kiya?
Me: Explained them each and everything about my work
experience (I have worked for Wipro)
Chairman: Achha Pandey Ji, hamare Pradhan Mantri ne shapath

lene ke baad kaafi saari schemes launch ki hain, kya aap naam bata
sakte hain?
Me: Yes Sir. Pradhan Mantri ne financial inclusion se le ke social
security ke liye kaafi saari schemes launch ki hain. Schemes ke
naam hain Pradhan Mantri Jan Dhan Yojna, Pradhan Mantri Jeevan
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Suraksha Bima Yojna, Pradhan Mantri Jeevan Jyoti Yojna, Atal
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Pension Yojna and Start Up India and Stand Up India.
ah
bo
ob
Chairman: Achha Pandey ji, apni strengths and weaknesses
.w
batayein.
or
Me: Sir meri strengths hain ki I can entertain group of peoples. I
dp
re
can crack jokes and I can sing. And as far as my weaknesses are
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concerned, I can't resist whenever I see Mithayi.
.c
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Chairman: Vaise Pandey ji, aapki ek aur strength hai..
Me: I got confused
Chairman: You have got smiling face.
Chairman: Vo toh aapko dekh ke lagta hai (as I am a bit healthy)

and everybody shared some smiles.
Now, chairman asked another panellist to ask questions. The

person seemed quite studious type and he was ready with
readymade Banking questions.
M1: What are NBFCs?

Me: Sir, NBFC is Non Banking Financial Companies and their
financial activities are quite different than banks.
M1: Name any NBFC.

Me: Sir, Life Insurance Corporation is one of the major examples of
NBFC.
M1: How do they make profit?

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Me: I am sorry sir, I don't know (I said no to save myself from
sm
further trouble because the person was asking in a rapid fire mode
ah
and unlike Chairman).
bo
ob
.w
M1 (It‟s okay and he asked Sardar Ji to ask questions)
or
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Sardar Ji: Achha beta ji, aapne jokes toh suna hoga, like Kejriwal pe,
ss
Modi Ji pe, Ladies pe, Sardaron pe etc. Chalo ek joke sardaron par
.c
sunao.
om
Me: I smiled and said, I am sorry sir, main nahi suna paunga
(Chairman interrupted and said ki beta Santa Banta wale hi suna
do). But I resisted myself and kept on smiling and the panel was
kept on pushing. Somehow I managed to save myself.
But Sardar Ji continued with more questions and asked ki Defence

chiefs ke naam batao.
Me: Sir, defence Chiefs ke naam hain General Dalbir Sing Suhag,
Air Chief Marshall Arup Raha, and RK Dhowan (Went Blank for
head of navy but they corrected Admiral RK Dhowan)
Sardar Ji: Achha, koi 3 Pandey Ji ka naam batao jo apne field me

famous hain.
Me: Sir Mangal Pandey (A Freedom Fighter) and I became quite.
The Chairman pushed and said ki abhi Cricket me koi aaya hai
naya then I said Manish Pandey. I was about to say Poonam
Pandey but stopped. Sardar Ji said it's okay.
Sardar Ji: Achha, Cricket me koi 3 record tute hain, tumhe yaad
hai?
Me: Ek toh Sir, Adelaide me koi bhi team batting first T20 nahi jeeti
thi and Virat Kohli bhi fastest scoring cricketer bane hain.
yo
ur
sm
Sardar Ji: Achha Pandey Ji, parso kisi ko koi chakra mila hai?
ah
Me: Haan sir, posthumously mila hai but couldn't tell the name.
bo
ob
.w
Chairman: Pandey Ji, you may go now (Extending his hand for
or
Handshake)
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Me: I shook hand and left.
ss
.c
Friends, the experience is meant to break all the myths you have
om
created on your own. If you observe, all the questions are
interconnected. Every question was based on whatever I said. So
friends, It‟s you who drives the interview and if you let them drive,
then it may turn into blunder. I was confident throughout and
fumbled many times in between, but the chairman kept supporting
me. I don't know whether I will be selected or not, but I have the
satisfaction that I performed well.

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10. IBPS PO
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ah
Venue: The grand JBR
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ob
TIME- 1 PM
.w
6th February.
or
Panel 7(very supportive panel ye halla Mach rha tha) toh thodi
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khushi huyi.
ss
.c
Very Important thing that I would like to tell every aspirants is do
om
not go for the interview empty stomach. You won‟t have time and
neither will you find anything to eat or a restaurant nearby. Have a
breakfast and do carry a water bottle with yourself. Otherwise
you‟ll be wandering in search of water. All this might disturb on
that day so take care of such things to avoid any tension.
Verification:
At that time - ek sir ne pucha beard kyu hta di acchhe lgte ho usme
jyada. I said thank you sir.
Kaha se ho?
Me: Kanpur.
Sir: Kanpuriya ho.
Mere according yha (verification room)pr koi kuch observe ni krta

hai , verification kahi hota hai aur interview single room me hota h,
alag floor par.
Overall my VERIFICATION WENT SMOOTH.
Panel: 7 members
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4:30 pm: interview started.
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ah
M1(Silent observer),M2(confuse karne wale),M3 ,M4(
bo
ob
supportive),F1(silent killer lady)
.w
or
Me: knocked the door for 3 times. May I come in sir?
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M2, F1: come in, aayie bathiye.
ss
Me: good evening ma‟am, good evening sir.
.c
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M2: Kya nam h aapka??
Me: Sir mera nam Vikas Pandey h.
M2: Kaha se hai Pandey ji?

Me: Kanpur.
M3: Kya Kia h beta aapne?

Me: Sir Mene b.tech Kia h
F1: Inhonhe ek question pucha vo bhi most confusing.

Ye btao Vikas ki ek banker me aapke according kaun si quality Ni
honi chahiye.
Me: Mene turant kha misbehaviour ni krna chahiye ek banker ko
chahe vo staff ho ya customer ho Kisi k bhi sath.
M1: acchha kaun si job me misbehaviour allowed h ??

F1: ab btao beta.
Me: Aisi toh koi job nhi h mam jha misbehaviour allowed ho.
F1: it's impatience. Ek banker ko impatient ni hona chahiye.

Me: yes ma‟am. I got it now.

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M2: what is trade deficit?
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Me: when import is same as in past (crude oil) but export gets
ah
reduced due to some reason. This is called "TD"
bo
ob
.w
M2: what is MCLR?
or
Me: Sir it's a lending rate, marginal cost of funds based lending
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rate. 1/4/2k16 se lagu hua h. Isse phle base rate chalta tha.
ss
.c
M2 : What is cost of funds? (last answer se follow up liya unhone)
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Me: Sorry sir mene padha tha thoda complicated tha recall ni kr pa
raha hu.
M2: it's OK ,jaruri nhi ki aapko sab kuch aata ho..
M3: Ek bat toh bht acchhi ye h k aap B.tech hai aur aap itna sab bta
pa rahe h..kyu ma‟am??
F1: hmm
M3: Acchha beta college kha se complete Kia ?

Me: HCST MATHURA.
M2: Fir kya kia 2014 k bad?

Me: sir I worked in Pvt. Company Justdial. Then STARTED
GIVING competitive xams.
F1: Job chor di?

Me: Yes ma‟am.
M2: Bank me kyu aana h??

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Me: Sir mujhe B.tech se jyada banking se pyar h. Kyunki ye mujhe
sm
samjh me aati h.
ah
bo
ob
Me CRR,SLR,MSF,repo,reverse repo k economy PR
.w
effect(inflation/deflation) ko programming aur networking se
or
jyada behtar tarike se samjh pata hu, yhi Kuch vajah h ki me ki yha
dp
re
40 saal bitana chahta hu.
ss
.c
Ek aur reason ye h ki family ki responsibility bhi mujhe hi
om
sambhalni h toh ek secure ND stable job is the need of time.
All were impressed, good. Bht acchi bat h ye toh.
Me: Yes sir.
M3: Kitte marks aa jayenge written me.

Me: 70 around (attempt 91)
M2: Family me kaun kaun h?

Me: told
M3: OK very good beta.

Best wishes for your bright future
Me: thank you so much sir.
Good evening ma‟am, good evening sir. Have a nice day ma‟am,
and Sir.
All panel members were very happy. They were in a good mood.
Same to you beta.

yo
ur
Phli bar government job ne feel kraya ki me ab sahi track pr pdhayi
sm
kr rha hu.
ah
bo
ob
Note: Future candidates se ek bat jrur bolunga ki Bina dare andar
.w
jaye. It's a formal discussion. Not a typical interview. Aur ek bat Jo
or
B.Tech ya graduate 75℅ or above marks wale h unse Puch the the ki
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yar itne acchhe marks h yaha kyu aa gye? Toh panic mat kre ,apne
ss
jawab prepare krke jaye. Vo keval draft the. A group was
.c
discussing about it so I told here. Ek candidate ka interview bs 1
om
minute chla tha ,usne jawab ni dia ,use kha jaiye.
Thank you.

yo
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11. Important Interview Questions
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ah
bo
The ice breaking questions asked in interview are usually based on
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personal details of the candidate and related to candidate‟s family,
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qualification, future planning and basic knowledge which can be
or
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either related to their subjects or the role for which they have
re
applied. In Banking Interviews general aspects tends to get a bit
ss
technical i.e. Candidate must be prepared for questions from
.c
Banking, Economy, Finance and Current Affairs.
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Some of the questions you can expect from these areas are
discussed below and the answers or guidelines provided are only
hints based on which one can prepare the answers. This may or
may not fit in an individual case and may require case to case
modifications and improvisation.
Q. Introduce yourself.
You can answer this question by giving a brief introduction of
yourself - including your name, how many family member are
there in your family, family profession, about your education and
professional qualification if any, brief work experience if any, and
career interest.
Q. What is the meaning of your name?

This is a very common question that the candidates face at a bank
interview. You must know the meaning of your name and
mythological importance of your name. In fact, if the name of any
of your family members has a special connection, you must know
about that also.

yo
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Q. What is the specialty of the place you belong to?
sm
You must be aware of the good/ bad things related to their home
ah
town or the place they live. You must know the history of the place
bo
ob
like - what is the meaning of the name of your city, what is the
.w
history behind it, what was the old name of your place etc. or
or
anything special that the city is/ was famous for like sarees,
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bangles, marbles etc.
ss
.c
If there‟s nothing special about the city, try to explore famous
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places nearby. For example if a person belongs to any village in
Rajasthan, then he/she can give a view of Jaipur or Jaisalmer or any
other famous place near to his/her town or city or village. It can be
the nature‟s beauty, food, clothes, industries etc.
Q What are your hobbies?

Hobbies give an insight into your personality. So, mention them
carefully and once you have mentioned them, you must know well
about them. For example if the candidate says that playing cricket
is his/her hobby, then the candidate must know about the number
of players, rules and regulations, about the recent cricket match, a
little about cricket players also and all current news related with it.
Mentioning a hobby just for the sake of doing it without a proper
knowledge about it will be disastrous.
Q. Why did you choose banking as your profession?

This is a very common question that you can expect. Provide a
straight answer without trying to bat around the bush.
Q. Do you have any previous experience?

If you are working somewhere, you must know your job, company,
industry well, as you can expect some related questions. Also, you
yo
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must be very careful while replying to this question if you have
sm
switched jobs frequently. Since many candidates leave the bank job
ah
after some time, so, they try to find people who will work with
bo
ob
them for a longer time. Too many job switches in your profile
.w
reflect badly on your stability. Either don‟t show too many job
or
switches or be prepared with the valid reasons for change. If you
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are a working candidate, keep your NOC and other required
ss
documents ready. The banks are very strict and can cancel your
.c
candidature in absence of a required document.
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Q. Why did you leave your previous job?
Always be positive regardless of the circumstances. Speaking badly
about your past employers would reflect badly on you. So, don‟t
malign anyone. The best answer would be – for better prospects
unless you have a more genuine reason to offer.
Q. How can you be a value addition to our organisation?

Try to connect your qualification and relevant experience with the
organization. The candidates from fields like engineering, science
etc. also apply for the bank job. These candidates can relate their
qualifications or subject they studied in their graduation with the
banking sectors. Try to show a little banking knowledge here. Show
that you are interested in this job from several years with a valid
reason.
Q. Where do you see yourself in another five years?

Give an answer which is practically possible. Study a bit about the
banking organization that what are the possible posts you can
achieve in coming 5 to 10 years, and answer accordingly.
Q. Do you think you have leadership quality?

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Give a positive reply and relate it with some achievement at work,
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academics or even from the personal life
ah
bo
ob
Q. Can you explain a situation in which you displayed the
.w
leadership quality?
or
Mention a situation when you conducted any program, captained
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any game like cricket, football etc. or any school curricular activity.
ss
If you have no such experiences then try to relate it to some of the
.c
incidents in your personal life.
om
Q. Do you have any achievement?
The achievement doesn‟t mean only by saving someone life or
getting a gold medal. If in your life you feel you have got or done
something good, it is an achievement.
Q. What is the basis of preferences which you have filled in your

application?
In case of banking candidate should have reasoning behind
preferring one bank over the other. The same can be backed by way
of comparing them on basis of branches, business and overall
brand.
Q. What are your strengths?

Give two or three traits which can help you in your banking job like
eye of detail, precision, good communication skills etc.
Q. What are your weaknesses?

Give one and correlate it with some strength. Never give any
negative trait that affects or results negative.
Q. Are you applying for other jobs?

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Don‟t spend a lot of time replying to this question. Be honest and
sm
keep the focus on this job.
ah
Don‟t give a big answer or discuss your future planning. Speak
bo
ob
about what is in front of you only.
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or
Q. Do you know anyone who works in banking sector?
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Keep information of relatives or parents friend who work in
ss
banking sector. This gives an impression that you are aware about
.c
the industry and culture but be careful to mention a friend only if
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they are well thought of.
Q. Are you a team player?

Always reply a positive answer for this question because it is a
common requirement in all organizations. Give a generic example
from your experiences and show that you are a good evidence of
your team attitude.
Q. Why should we select you?

Relate your skills and qualifications with the requirements.
Q. Are you willing to work at other places except from your

hometown?
Always reply this question with a „Yes‟. There are less chances of
getting the job at your desired places and there are many
candidates who are ready to work anywhere.
Q. How would you evaluate your present firm?

Talk positive things about your current employer. Tell about the
valuable experience you gained from the organization. Don‟t
mention negatives.

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Q. Who is your idol?
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Only name of your “idol” is not sufficient. The candidate must
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know the history of his/her idol as well what are the qualities
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which make him/her the idol?
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or
Q. Do you have any questions?
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If you have any genuine questions, you can ask. Otherwise, you
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may skip asking anything. While leaving greet the professionals in
.c
the interview panel by saying “thank you mam and sirs”, then you
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may take the leave.

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(I) Previously asked Personal Questions
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ah
It is not enough to have solid answers only for the below questions
bo
ob
but you need to be prepared for the full spectrum of questions that
.w
may be presented.
or
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 Tell me about yourself. (Even Qs related to your name/place can
ss
be expected if your name/place has prominence )
.c
 Why did you choose this career?
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 Tell us about your education?
 When did you decide on banking career?
 Aren‟t you over qualified for this position?
 How will your professional knowledge be helpful in the Banking
career?
 Do you have any plans for further education?
 Do you have any actual work experience?
 What have you been doing after graduation?
 Why are you leaving your current position? ( for working
professionals)
 What other career options do you have?
 What goals do you have in your career?
 How do you plan to achieve these goals?
 What do you know about banking?
 What is a Bank?
 Why do you want to work in the Banking industry?
 What do you know about our company? (Should have an idea
about important products from various banks, tag lines etc…)
 Why are you interested in our company?
 Why don‟t you join some private company?
 How is your professional knowledge useful for our organization?
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 Why should I hire you?
sm
 What will you do if you get a better offer?
ah

bo
Who is your role model?
ob
 What are your short-term goals?
.w
 What is your long-term objective?
or
dp
 Where do you see yourself, five years from now?
re
 What is your greatest strength?
ss
 What is your weakness?
.c
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 What are your hobbies?
 Tell us about your extracurricular activities.
 Q‟s related to your achievements?
 Are you a team player?
 Do you handle pressure well?
 Do you have any location preferences?
 Will you relocate?

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(II) Subject-wise/ Field Related Interview Questions
sm
ah
Every candidate must be prepared to face questions related to his
bo
ob
field of education. For example if you‟ve Economics Honours they
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may ask you question related to technicality of you subjects.
or
Following are few sample questions related to different fields and
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subjects. You may brush up your knowledge related to your field
ss
before appearing for the interview.
.c
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English
 What have you read in English poetry?
 What is the theme of Milton‟s poetry?
 Which poem of Milton enchants you? Please let‟s hear his lines?
 What else have you read in English?
 Do you know about Hamlet?
 Who is the Nobel Prize winner in Literature in 2012?
 Who is your favourite writer, and why?
 What is noteworthy about Shakespeare/Milton?
 Tell the name of some Indo-Anglo writers?
 Some contemporary Indian English writers and their work?
 Do you read novels?
 Which one you have read lately?
 “Woods are lovely dark and deep but I have promises to keep
miles to go before I sleep
 Miles to go before I sleep. “Why these lines are famous and who
has written these lines?
Public Administration, Management and Marketing

 What is POSDCORB In public Administration?
 What is Motivation?
yo
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 Explain X and Y theory of Motivation? Who is founder of this
sm
Theory?
ah
 Who is the founder of management?
bo
ob
 Who is the founder of Scientific Management?
.w
 Who is the founder of Management by Exception?
or
dp
 What are the “4 P” in Marketing?
re
 Use of Marketing in Banks?
ss
 What is Management? Define in one line?
.c
om
 What is marketing? Define in one line?
 How will you motivate your subordinates in Bank if there are
misconceptions between them or any confusion?
 What are the leadership qualities? Do you possess these
Qualities?
 What is marketing mix?
 What is product mix?
 What is Branding?
 What is “corporate social responsibility”?
Economics
 What is optimum theory of population?
 What is Malthusian theory of population?
 Why 5 year plan in India is not successful?
 What is law of Diminishing marginal utility?
 Define National Income?
 What is the Difference between GDP and GNP?
 Difference between Micro and Macro Economics?
 Difference between Dynamic and Static Economics?]
 What is Interpolation and Interpolation?
 What is Time Series?
 Explain Fisher Index Theory?
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 Principle of maximum Social Advantage?
sm
 What is Absolute Error?
ah

bo
Discuss Keans‟s theory of Employment?
ob
 What is indifference curve analysis?
.w
 What is Say‟s market law?
or
dp
 What is perfect competition?
re
 Price determination under imperfect competition?
ss
 What is Dumping?
.c
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 Difference between Economy and Economics?
 What is Law of Demand?
 What is AC-MC Curve?
 Relevance of International Economics for this year?
 Who is the winner of Nobel Prize of Economics for this year?
 For which work this year‟s Economic Nobel is conferred?
 Who is Amaitya Sen?
History
 Who was Vikramaditya?
 Who was Chanragupta-II? Were Vikramaditya and
Chandragupta-II the same person?
 He belonged from which place?
 Who was the first governor- general of the independent India?
 How many battles were fought in Panipat?
 Who had fought all the three battles?
 Tell me something about Julius Ceaser? Name two well-known
Historians?
 What do you know about Indus valley civilization?
 When did Aryans come to India?
 What are the sectors of Jain Religion?
 Please tell us about main principles of Jain Religious?
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ur
 Who laid the foundations of the British Rules in India and in
sm
which year?
ah
 What is Magna Carta?
bo
ob
 Who was the last emperor of Gupta period?
.w
or
Political Science
dp
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 You are a student of Political Science? How is our foreign Policy
ss
at present?
.c
 What is Socialism? Should we follow it fully?
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 What is Capitalism? Should we follow it if yes then why of not
then why?
 Which article refers to emergency provision?
 What is article 356?
 How does amendment take place in the constitution?
 What is Veto?
 What is article 370?
 Do you think that Sonia Gandhi is a good leader?
 Sonia Gandhi as a PM, Are you agree with it if yes then why it
not then why?
Geography
 What are the benefits of flood?
 Can you give some specific reasons for untimely rain is India?
 What is Alnino effect?
 What is Hurricane?
 How many types of soil are found in India?
 How your subject would be useful in Bank?
 Do you know some places where black soil is available in India?
 For which crop is the black soil suited most?

yo
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Math
sm
 Which part of your mathematics is good?
ah
 Do you know Demovier‟s theorem? Explain it.
bo
ob
 Expansion of SinX.
.w
 Expansion of CosX.
or
 Fariur Sevices.
dp
re
 Define n
ss
 pr and n
.c
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 cr and their different applications in solving sums?
 What is Differentiation?
 What is Integration?
Science Stream
 Why does cycle tube burst in summer?
 Why does sky look blue?
 What is the formula of (A+B)3
 Is there any vain which carries impure blood?
 What is color blindness?
 What is Raman effect?
 What is Boyle‟s law?
 Who is the winner of Nobel prize……in Physics, Chemistry and
Medicine?
 What is Newton‟s I, II, III law?
 What is Charl‟s law?
 Is there any use of science in Bank?
 What is Snell‟s law (laws of refraction)?
 What is Coulomb‟s law of Electrostatics?
 What is Boyle‟s law?
 What id Pascal‟s law?
 What is Archimedes‟s Principle?
yo
ur
 What is Specific heat?
sm
 What is Conduction, convection, radiation?
ah

bo
What is Doppler‟s effect?
ob
 What is Hard and Soft water?
.w
 What is under table water?
or
dp
re
Law
ss
 What is the difference between IPC and CPC?
.c
om
 Is our constitution written?
 When was IPC formed or written?
 When was CPC formed or written?
 What is hypothecation?
 What is mortgage?
 What is Negotiable Instrument Act?
 When Negotiable Instrument Act came into force?
 Difference in bill of exchange and Promissory Notes?
 Difference between cheque and Draft?
 Tell us something about banking regulation Act?
 What is Pledge?
 Tell us something about Debt Recovery Tribunal?
 Till us full name of Securitization Act?
 What is Securitization?
 What is Lok Adalat?
 What are the new amendments regarding Company Act?
 Difference between promise and proposal
 What is Sale of Goods Act?
 Difference between void and voidable contract?
Agriculture
 How Indian Agriculture is viable?
yo
ur
 Tell me something about green revolution?
sm
 Impact of green revolution on Banking Sector?
ah

bo
How you will manage rain-flooded area and raid-fed area?
ob
 What are genetically modified crops?
.w
 With a bumper harvest and record yield of food grains this year,
or
dp
the price rise was expected to be reversed, But strangely the
re
prices continue to rise in India, why this is so?
ss
 What is the present scenario of Indian Agriculture?
.c
om
 What is Rain water harvesting system?
 How much amount of pulse is required at minimum in Indian
diet, and how much Indians are actually getting it?
 What is organic Farming?
 How it is differ from existing way of farming?
 Give some suggestions for sustainable Agriculture in 21st
century?
 What is sustainable agriculture?
 What is the situation of use fertilizers in India? Are they being
used in accordance with the prescribed proportion of NPK?
 What are the problems of marketing of agricultural groups
 What are the main sources of agricultural credit in India?
 Can commercial banks provide economic assistance to the
farmers?
 Why should Agricultural officers be appointed in banks?
 What is the contribution of Agriculture towards National
Income?
 Can a non-technical man manage the post of an Agricultural
Officer of a bank?
Commerce Stream
 What are the principles of Book Keeping?
yo
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 What is Balance Sheet? How you come to know after seeing
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balance sheet that economic condition is good or bad any
ah
organization?
bo
ob
 What is the difference between CA and ICWA?
.w
 What are the Accounting ratios?
or
 What is the use of ratio in balance sheet of a bank?
dp
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 What is Acid test ratio?
ss
 What is accounting?
.c
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 Difference between Double Entry System and Double Account
System?
 Difference between Presidency and Provincial Insolvency Act?
 Explain various lists of Insolvency Act.
 Explain tax and how many types of Tax are being imposed in
India?
 What is Direct and Indirect Tax? Give some examples?
 What is 80L, 80G, 80DD, 88B, 89(1), 88C, 80E?
 What are the sources of Income according to Income Tax Act?
 What is Capital Gain?
 Income of MPs and MLAs is related to which sources?
 Agriculture Income is Exempt under which section?
 Current Assessment year?
 Describe new changes regarding to Income tax in current
Budget?
 When Income Tax Act was enacted?
 What is difference between Public Limited Company and Private
Limited Company?
 Article of Association?
 Memorandum of Association?
 Quorum?
 Annual General Meeting?
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 What are Prepaid Expenses and Outstanding Expenses?
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 Tell us about Authorized, Issued and Paid-up Capital.
ah
 What is Forfeiture of shares? How it is treated in Balance Sheet of
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a Bank?
.w
 What is Single Entry System?
or
dp
 Tell us about Promoters and Directors?
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 What is Auditing? What are the main purposes of Auditing?
ss
 “An Auditor is the watchdog of a company” Explain it?
.c
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 What is Value Added Tax?
 What is Market Capitalization?
 What is Break Even Point?
 What is Prime Cost and Overhead Cost?
 Difference between Fixed and Variable Expenses?
 What is Marginal and Standard Costing?
 What is Master Budget?
 What is capitalization?
 What is Contract?
 What is Bank Reconciliation Statement?
 What is Partnership Deed?
 Relevance of “Bhartiya Bahi Khata” in present time?
 What is Wages Inward and Outward?
 What is “Contribution” in Cost Accounting?
 Difference between Cost Accounting and Cost Accountancy?
 What are the elements of effective Communication?
 Explain Accounting Standards?
 Explain Accounting Conventions?
 What is Accounting Equation?
 What is the use of Trial Balance?
 What is Fund Flow?
 What is Cash Flow?
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 What is Working Capital?
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 What are LIFO, FIFO, and HIFO?
ah

bo
What is Short Working?
ob
 What is Work in Progress?
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 What is Intangible Assets?
or
dp
 Tell us the Errors which are not disclosed by Trial Balance?
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 What is difference between Public Sector Company and Public
ss
Limited Company?
.c
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 What is Real Account?
Finance
 Difference between FDI and FII?
 What is Sensex?
 What is Nifty?
 Difference between Cheque and DD.
 What is NBFC?
 Difference between Banks and NBFC.
 What is KYC? Is it really useful to restrict Black Money, how?
 Demat account?
 Shares?
 Brokers?
 Bullion market?
 RBI, SBI, NPA?
 What is meant by willful defaulters? Who displays this and why?
What are the effects of being declared as willful defaulter by
them..?
 Money spent on PMJDY for ad's was waste or useful..?

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(III) Some Random Questions
sm
ah
 Share some views about Malala. She deserved Nobel or not?
bo
ob
 Do you believe that Atal Vihari Bajpayee deserved Bharat Ratna?
.w
 Don‟t you think Govt is bit late in giving Madan Mohan Malviya
or
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a Bharat Ratna?
re
 Who was Madan mohan Malviya? Expalin elaborately.
ss
 Is BJP right for India?
.c
om
 Explain Peshawar Attack
 What is moral policing?
 What is kiss-of-love movement?
 Why Modi visiting several countries frequently? Don't you think
it is unnecessary?
 Why MOM is necessary for us? Without that we can't eat or
what?
 Increase in E-Commerce is good or bad? If good, why retailers
don‟t like the? (P.S.: Through Retailers, Govt. earning more
money)
 Recently 1 cricketer died of bouncer, what was your feeling?
Bouncers should be banned?
 Why Planning Commission Abolished?
 Who is Bodo militant? Why they were in News?
 What is wrong with Rahul Gandhi? Why he is not as famous as
Modi? (General Elections prospect)
 Why is the insurance bill so important?
 The right to fair compensation and transparency in land
acquisition, rehabilitation and resettlement Bill 2012?
 What is article 370, and why it was in news?
 What is Coalgate scam? And how it leads to e-coal auction?
 Tell me about the success stories of ISRO in 2014?
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 What do you think about plane crashes? Who have to be blamed?
sm
Aviation Industry or Private Airlines? Why Government not
ah
takeover all private airlines and airports?
bo
ob
 What do you know about Ebola outbreak? Tell me some
.w
symptoms?
or
 Do you really know about Kailash Satyardhi before he took
dp
re
Nobel? He deserves it or not?
ss
.c
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(IV) Solved Examples of Tricky Interview Questions
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ah
These are some very tricky questions that an interviewer might ask
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to know about how you would respond in a situation or to get an
.w
idea of your thoughts and personality. There is actually no wrong
or
or right answers to such questions, it is just a matter of perception,
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ones experiences and thought process. You need to be very creative
ss
to stand out while answering such questions and the best way is to
.c
practice by yourself.
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EXERCISE 1: Try to answer the following set of questions on
your own. Try to give it your best shot, then you may refer to the
explanations and solutions given below the exercise and try to
reframe your answers to make them the best.
Mock Exercise 1
Q1. Tell me something about yourself?
Q2. Where have you come from and what is famous in your city?
Q3. Why do you want to join the banking industry?
Q4. Please tell us about your strength and weaknesses.
Q5. After doing B.Sc/B.tech/MBA/MA why do you want to

choose banking? Why not something related with you field of
education?
Q6. What has been the greatest disappointment in your life?

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Q7. What are you passionate about?
ah
bo
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Q8. What do people most often criticize about you?
.w
or
Q9. When was the last time you were angry? What happened?
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ss
Q10. If you know your superior is 100% wrong about something
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how would you handle it?
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Q11. Why do you think you will be successful at this job?
Q12. Tell me about a time that you participated in a team, what

was your role?
1. Tell me something about yourself?

You walk into the interview room, your interviewer asks you to sit
down with your best interviewing smile on. Guess what their first
question is? "Tell me about yourself." Do you "wing it" and actually
tell all manner of things about yourself? Will you spend the next 5
minutes rambling on about what an easy-going, loyal, dedicated,
hardworking employee you've been? If this is the case, you stand a
good chance of having bored your interviewer to death thus
creating a negative first impression. Because it's such a common
interview question, it's strange that more candidates don't spend
the time to prepare for exactly how to answer it. Perhaps because
the question seems so disarming and informal, we drop our guard
and shift into ramble mode. Resist all temptation to do so. Your
interviewer is not looking for a 10-minute dissertation here.

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Instead, offer a razor sharp sentence or two that sets the stage for
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further discussion and sets you apart from your competitors.
ah
bo
ob
To answer this, the candidate must tell his name, place of residence
.w
and his current work or educational degree along with a very brief
or
note on his family-father, mother and siblings. He/she can also tell
dp
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about his father or mother‟s occupation. One point must be
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highlighted here is the USP or the Key Achievement of the
.c
candidate. As that might be one the make or break point. From here
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the Interviewee can actually drive the interview. Give them "your
synopsis about you" answer, specifically your Unique Selling
Proposition. Known as a personal branding or a value-added
statement, the USP is a succinct, one-sentence description of who
you are, your biggest strength / achievement. This could very well
be your introductory line. Here is an example of a Unique Selling
Proposition: Someone without any work experience - "I'm Ashok
Kumar, a Bachelor in Commerce with Hons from Delhi University.
I am a Gold Medallist of my Batch and an ardent follower of
Gandhi Principles. (Here Interviewee is trying to drive the interview as
the next question can be on Gandhi Principles”). So if you have
something like that go and speak up and use it for your benefit.
Some key points to note here are:-

 He must know the meaning of his name and specific reference
with his name if any. For ex:- a boy named “Prashant” was asked
about the geographical connection of his name i.e. Prashant
Mahasagar or Pacific Ocean.
 The answer should be precise and questions like- if your father is
a teacher then why do you want to become a banker? Can come
up from your answer to the first question. Be prepared with the
answers to these expected questions.
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 Because this is the first question so the candidate must give a
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short and effective answer. You might be nervous at the
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beginning but remember to keep a smile on your face.
bo
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 Be Specific - The key is that you must lead with your strongest
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benefit to the employer. Be specific and don't wander about with
or
some laundry list of skills or talents. Be sure to put a monetary
dp
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value on your work if at all possible and be ready with details
ss
when you're called upon.
.c
 Be Prepared - When you walk into an interview, remember to
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always expect the "tell me about yourself" question. Prepare
ahead of time by developing your own personal branding
statement that clearly tells who you are, your major strength and
the clear benefit that your employer received. The advantages of
this approach are that you'll quickly gain their attention and
interest them in knowing more. You'll separate yourself from
your competitors. You'll also have a higher chance of being
positively remembered and hired
2. Where have you come from and what is famous in your city?
The candidate must tell about his place of living- city and state. If
the board further asks about any specifications, then name of the
district etc. should be told. He/she must tell about the famous
things of his place. For ex:- a candidate from Lucknow may tell
about Imambara, chicken clothes, “tehzeeb” of Lucknow etc.
The key things to deal this question effectively are:-

 The candidate must know about the local MLA and MP from his
area. If any renowned personality belongs to that area, you
should be aware of the details.
 He must have full knowledge about that place, its history,
famous monuments, personalities, rivers, at times even number
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of railway stations in the city etc., also about the politics of that
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state-CM and ruling party and all other nitty gritties of his place.
ah
 For ex: - A candidate from Ghazipur, U.P. was asked about
bo
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cultivation of “Poppy seeds” as Ghazipur is famous for
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cultivation of poppy seeds.
or
 At times, questions about local politics are also put forward like a
dp
re
candidate, from Amethi was asked about the electoral battle
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between Rahul Gandhi and Kumar Vishwas form Amethi.
.c
 A good answer to such questions leaves a very positive impact
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on the board as it demonstrates your awareness about the
surroundings and the fact that you are well prepared puts you
ahead of others.
3. Why do you want to join the banking industry?

To answer this question, you can say something like –“I want to
join this industry because it can provide me a stable career with
good growth prospects. It is one of the fastest growing sectors of
the nation and provides great career opportunities.
There could be many other reasons for you wanting to join the
bank industry for e.g. it is an honest organization, good working
conditions, chances to directly interact with public etc. The choice
of reason could be anything that suits you as a person. This is a
very commonly asked question and you must be prepared to
answer it.
4. Please tell us about your strength and weaknesses.

Here, the answers vary from candidate to candidate. But the
strength and weakness should be such that they match up to or are
in synchronization with the personality of the candidate. For ex:- If
a candidate says that his strength is is general awareness while in
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reality he possesses least knowledge of current affairs - cross
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questioning can easily unveil him and could actually land him in
ah
trouble.
bo
ob
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Some key things to answer this question effectively are:-
or
 Try to put forward a strength which is useful in the banking
dp
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sector. For ex: - good communication skills, adjustable etc. The
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strength should bring about a positive aspect of your personality
.c
in front of the board.
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 This is a question from which you can actually turn the interview
in your favour. For ex:- If you say something like, “I have won
many awards in debate competitions so I would think that good
oratory skills are my strength.”
 This way I can inform the board about my previous
achievements also and can get an advantage over others.
 They may ask how your quality/strength will be helpful to bank.
Be prepared with an answer.
 Weakness should not be very negative like short temper,
irregular etc. as they leave a bad impression.
 Remember, this question is the golden chance for you to turn the
ball in your court. In the answer you must introduce all your
unique talent in front of the board. So that the interview enters in
your own comfort zone.
5. After doing B.Sc/B.tech/MBA/MA why do you want to choose

banking? Why not something related with you field of
education?
You must give honest and sensible answers to such question. For
ex:- A MBA candidate may say that there are hardly good jobs in
MBA as of now. Banking is a safe sector providing great
employment opportunities. In the answer, you must show your
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keen interest in joining banking sector and it should not look like
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you don‟t have an option so you are choosing it.
ah
You can also expect some questions from academics. A science
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stream student may be asked about Newton‟s Law etc. So, you
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must also prepare the subjects studied by you in the degree.
or
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6. What has been the greatest disappointment in your life?
.c
Your response to the question "What has been the greatest
om
disappointment in your life?" will help the interviewer determine
know how easily you are discouraged. Believe it or not, it is okay to
have not had a "greatest" disappointment.
Personal disappointment can be the early death of a parent, child,
or school friend or something you may regret. Be very careful with
what you speak, this will give them a peak in your thoughts and
personality. If there is nothing such you may say I haven‟t
experienced any such thing that I may term as the greatest
disappointment of my life yet, I hope and pray I won‟t experience
any such thing in near future.
7. What are you passionate about?

When you're asked what you're passionate about during a job
interview it's a good opportunity to share what is important in
your life. It's also an opportunity to show your dedication and
what's important to you.
Your response doesn't need to be work focused, but do be sure that
what you share isn't something that could potential cut in to your
working hours.
For example, you don't want to say that you're a mountain climber
with the goal of climbing Mountain Everest
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A possible answer could be that: One of my greatest passions is
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helping others. When I was younger, I've enjoyed helping mom
ah
with household repairs. As I grew older, that habit grew and I
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desired to help others as well. I like helping people find solutions
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that meet their specific needs.
or
Or I'm passionate about painting. I take an evening art class once a
dp
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week and try to find time each weekend to paint. Painting is a good
ss
way for me to relax and even though I don't have much talent, I do
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it enjoy it.
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Or I'm passionate about making a difference. When I'm involved
with a project at work I want to do my best to achieve success, I feel
the same way about what I do in my personal life.
8. What do people most often criticize about you?

The interview question "What Do People Most Often Criticize
About You?" is asked to find out how sensitive to you are and how
you accept criticism.
A possible answer could be that: There's no on-going criticism. I'm
open to personal and professional growth and welcome the
opportunity to improve.
9. When was the last time you were angry? What happened?
When the interviewer asks "When Was The Last Time You Were
Angry? What Happened?" he or she wants to know if you lose
control. The real meaning of the word "angry", to an interviewer, is
loss of control and it's important to know how you handle
situations when you're angry.
A possible Answer could be that: Anger to me means loss of
control. I do not lose control. When I get stressed, I step back, take a
deep breath, thoughtfully think through the situation and then
begin to formulate a plan of action.
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sm
10. If you know your superior is 100% wrong about something
ah
how would you handle it?
bo
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The question "If you know your boss is 100% wrong about
.w
something, how would you handle this?" is asked to find out how
or
you deal with a difficult situation.
dp
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A Possible answer could be that: Sir, at first I‟d like to convey my
ss
viewpoints to my senior and I‟d try that we sit together and come
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to a solution which abides by company‟s norms and is appropriate
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for the situation. If things won‟t work out that way, then it‟ll be my
duty to inform concerned higher official and ask for their guidance
so that we can devise a solution for the same.
11. Why do you think you will be successful at this job?

The interviewer is concerned as to whether you see this as a career move,
or stop-gap employment. You may add to your answer that you‟ve
worked hard to crack online examinations and then you serious to
get this job. With your hard work and dedication you‟ll continue to
work and then subsequently you‟ll be successful at this job. Getting
this job is one milestone and then you‟ll learn from your peers,
colleagues and experienced professional and you‟ll set further
milestones and work with dedication.
12. Tell me about a time that you participated in a team, what was
your role?
Companies, for the most part, do not want "Lone-Rangers" - they are
looking for employees who will adapt to the company culture and get
along with others.
In high school, I enjoyed playing football and performing with the
marching band. Each required a different kind of team play, but the
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overall goal of learning to be a member of a group was invaluable. I
sm
continued to grow as team member while on my sorority's debate
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team and through my advanced marketing class where we had
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numerous team assignments.
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or
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EXERCISE 2: Practice with this exercise and answer some more
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job interview questions about yourself. At last you may refer to
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the solution provided below the exercise.
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Mock Exercise 2
Q1. What is your favourite book? How about your favourite

movie?
Q2. What historical figure do you admire and why?
Q3. What did you do during this six month gap in employment?
Q4. What interests you about this job?
Q5. Why do you want this job?
Q6. Are you overqualified for this job?
Q7. What can you do for this company?
Q8. Why should we hire you?
Q9. Why are you the best person for the job?
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Q10. What do you know about this company?
ah
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Q11. Why do you want to work here?
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Q12. What challenges are you looking for in a position?
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Q13. Are you willing to travel?
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Q14. What is good customer service?
When the questions are "personal", about you, it can be a very

slippery slope. The answers below are guidelines so you can write
out your answers long before you go to the interview. Then, when
the question is asked, you can take the few seconds (expected by
the interviewer) to think about the question and how you will
frame your answer (which you already know).
1. What is your favourite book? How about your favourite movie?

The interviewer wants to know whether you read to stay current and if
you will you fit into the company culture.
Sample Answer (include your personal favourites): I read many
different kinds of books. My current "favourite" book is The World is
Flat by Thomas Friedman. My favourite movie? Miracle on Ice.
2. What historical figure do you admire and why?

The interviewer wants to know whether you are well read and
what characteristics you admire.

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3. What did you do during this six month gap in employment?
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Everyone, at some point, will probably have a gap in employment. Do not
ah
"waste it". Be truthful and genuine. Your answer should reflect that
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you‟ve used that time productively and you did not just sat idle.
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Don‟t try to frame false facts, they‟ll entangle you in your own web
or
of lies and then you‟ll know they‟ll deduct marks.
dp
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4. What interests you about this job?
.c
When you're asked what interests you about the position you are
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interviewing for, the best way to respond is to describe the
qualifications listed in the job posting, then connect them to your
skills and experience. That way, the employer will see that you
know about the job you're interviewing for (not everyone does) and
that you have the qualifications necessary to do the job.
For example, if you were interviewing for a Human Resources
Manager job where you would be responsible for recruiting,
orientation, and training, you will want to discuss how you were
responsible for these functions in your past positions, and why you
are interested in continuing to develop your expertise in Human
Resources management.
Another example would be if you were interviewing for a Specialist
Officer role. In that case, you would mention your interest in
learning and excelling at new technologies or practices, your
experience in programming both new applications, and your
interest in and your ability to problem solve.
In all cases, you will want to convey your enthusiasm for the
opportunity to interview, along with your solid ability to do the
job.
5. Why do you want this job?

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Why do you want this job? Are you prepared to answer this
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question in an interview?
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Keep in mind that you can customize these answers to fit your
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particular circumstances and the job you are applying for.
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or
6. Are you overqualified for this job?
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Are you overqualified for this job? Are you prepared to respond
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when an interviewer asks if you're overqualified? Keep in mind
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that you can customize these answers to fit your particular
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circumstances and the job you are applying for.
7. What can you do for this company?

A typical interview question to discover what assets you have that
are specific to the company's goals is "What can you do for this
company?"
First of all, be sure to have researched the company prior to the
interview, so you are familiar with the company's mission.
Respond by giving examples why your education, skills,
accomplishments, and experience will make you an asset for the
employer.
Take a few moments to compare your goals with objectives of the
company and the position, as well as mentioning what you have
accomplished in your other jobs. Be positive and reiterate your
interest in the company, as well as the job.
8. Why should we hire you?

A typical interview question, asked to get your opinion, or to
validate the interviewer's opinion, on why you would be the best
candidate for the position, is "Why should we hire you?"
The best way to respond is to give concrete examples of why your
skills and accomplishments make you the best candidate for the
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job. Take a few moments to compare the job description with your
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abilities, as well as mentioning what you have accomplished in
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your other positions. Be positive and reiterate your interest in the
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company and the position.
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or
9. Why are you the best person for the job?
dp
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A typical interview question, asked to get your opinion, or to
ss
validate the interviewer's opinion, on why you would be the best
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candidate for the position, is "Why should we hire you?"
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The best way to respond is to give concrete examples of why your
skills and accomplishments make you the best candidate for the
job. Take a few moments to compare the job description with your
abilities, as well as mentioning what you have accomplished in
your other positions. Be positive and reiterate your interest in the
company and the position.
10. What do you know about this company?

A typical job interview question, asked to find out how much
company research you have conducted, is "What do you know
about this company?"
Prepare in advance, and in a word, research, so, you can provide
relevant and current information about your prospective employer
to the interviewer. Start by researching the company online.
Review the "About Us" section of the company web site.
Google the company, read blogs that mention it, and check
Discussion Boards and social networking sites.
If you're a college graduate; check if you can get a list of alumni
who work for the company. That's an ideal way to get an insider's
view of the employer, and to get information that might not be
available elsewhere.
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Use the information you have gathered to create a bulleted list of
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relevant information that you can easily remember during the
ah
interview. Taking the time to research will help you make a good
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impression with how much you know about the company.
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or
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11. Why do you want to work here?
ss
A typical interview question, asked to ensure that you are seriously
.c
interested in the job and the company, and to find out how much
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you know about the company, is "Why do you want to work here?"
The best way to answer this question is, first of all, to be prepared
and knowledgeable about the company. Spend some time
researching the company (the About Us section of the web site is a
good place to start) so you can talk about the benefits of working
for this employer.
Compare your goals with objectives of the company and the
position, then reiterate why you would be an asset to the employer.
Let the interviewer know what you can do for the company, if you
get a job offer.
Even though the question is about why you want to work here, you
still need to convince the interviewer that hiring you will benefit
the company.
12. What challenges are you looking for in a position?

A typical interview question to determine what you are looking for
your in next job, and whether you would be a good fit for the
position being hired for, is "What challenges are you looking for in
a position?"

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ur
The best way to answer questions about the challenges you are
sm
seeking is to discuss how you would like to be able to effectively
ah
utilize your skills and experience if you were hired for the job.
bo
ob
You can also mention that you are motivated by challenges, have
.w
the ability to effectively meet challenges, and have the flexibility
or
and skills necessary to handle a challenging job.
dp
re
You can continue by describing specific examples of challenges you
ss
have met and goals you have achieved in the past.
.c
om
13. Are you willing to travel?
If you are applying for bank jobs and you really want to become a
banker you must then travelling comes along with it. PO or Officers
can be posted anywhere in India that might even include rural or
remote location branch. You can also be posted in your hometown,
that‟ll be your luck. But essentially you must be willing to relocate.
When the interviewer asks this question, they are looking for a „yes‟
and they‟ll catch your slightest hesitation. You should be confident
and willing to relocate, express this in your answer without any
hesitation.
14. What is good customer service?

Here is a selection of sample answers you can use to respond to
questions about good customer service.
Good customer service means having thorough knowledge of your
inventory, experience with your products, and being able to help
customers make the best choices for them.
Good customer service is treating customers with a friendly,
helpful attitude.
Good customer service means helping customers efficiently, in a
friendly manner. It's one of the things that can set your business
apart from the others of it's kind.
yo
ur
12. What is a Group Discussion?
sm
ah
bo
Group Discussion is a kind of dialogue in which conversation takes
ob
place between two or more persons over any given topic. It is a
.w
systematic and purposeful interactive oral process where the
or
dp
exchange of ideas takes place in a systematic and structured way. It
re
is a method used to gauge whether the candidate has certain
ss
personality traits and/or skills that an organization desires in its
.c
members. GD is used widely all across the globe as a parameter to
om
evaluate personality of the candidates to shortlist them for the
interview process. But the complexity with group discussion lies in
the fact that it is considered as a debate by many aspirants. Though
they know the literal meaning of the word Group Discussion but at
the time of a GD they tend to do more of a debate rather than a
discussion. A debate is a formal direct oral contest or competition
in argumentation between two or more people on a defined
proposition at a specific time. You choose either to support an
argument or to go against it in a debate but in a group discussion
you have to choose your words carefully to be able to express every
aspect of a topic in short & crisp manner.
(I) Discussion vs. Debate

In a debate, the participants are divided 'in favour of the motion' or
'against the motion' & the most eloquent argument wins whereas in
a GD partcipants are given a common topic to initiate a discourse.
Debate is highly competitive in nature while group discussion is a
co-operative group process. Usually, an ideal GD is where the
partcipants are not adversarial & competing as in debate. In a
debate, one listens to find flaws & counterarguments whereas in a
Group discussion, the aim is to add some more points to the topic
to present a broader perspective of the given topic. A critical
yo
ur
difference between a GD and a debate is that, while a debate begins
sm
with two groups' bids to outwit each other, a discussion is
ah
evolutionary; this essentially means participants have the
bo
ob
opportunity to refine their views in the course of the discussion.
.w
Thus, every member needs to contribute substantially and add to
or
the existing knowledge base instead of pulling each other down.
dp
re
The difference, thus, lies not just in the format in which they are
ss
carried out but also in the mind-sets to tackle. The objective of a GD
.c
is mainly to check your team playing skills. You have to
om
understand the other persons‟ point of view, while making your
point and ensure that your team as a whole reaches a solution or
agreement that is both feasible and accepted by all team members.
A great leader
(II) Why banks conduct a GD

It is an effective tool in problem solving, decision making and
personality assessment. Depending on the kind of profile you have
and the company you work for, you will be part of meetings
ranging from brand launches and employee performance
appraisals to company financials, etc. It is a tool that enables you to
present your ideas & to add yours to the existing ones in important
meetings. Banks need personnel who can present their views in a
logical & eloquent manner. If a candidate is applying for the post of
Probationary Officer, banks expect him/her to have a good
command over language to express ideas in a succinct way and
leadership qualities so that he/she is capable of influencing both
customers and peers. A group discussion helps the bank to screen
candidates who have vague thoughts. So, it becomes necessary for
a candidate to be well versed with all day-to-day happenings in &
outside India.

yo
ur
(III) What all attributes of a candidate are tested in a GD?
sm
 Interpersonal Skills
ah
 Communication skills
bo
ob
 Leadership Skills
.w
 Motivational Skills
or
 Team Building Skills
dp
re
 Analytical /Logical Skills
ss
 Reasoning ability
.c
om
 Initiative
 Assertiveness
 Flexibility
 Creativity
(IV) Roles of participants

1. Initiator: A good candidate should be able to take the rein in his
hand by starting the discussion. This initiation leaves a positive
impact on the jury. Also, by starting the discussion he can also
guide the group.
2. Information seeker and giver: The participant should be both at
the same time. He/she should be able to provide correct facts &
that is possible only when his/her general knowledge is sound.
3. Process facilitator: This trait aims to check whether the
participant would be able to mould in the organisation. So, in GD if
he/she fails to follow the process smoothly then it mars the chances
of selection.
4. Opinion seeker: The participant should be open to accept views
of others. This is the most significant quality of great leaders. They
are always open to listen to other's ideas & also to accept them if
they are feasible.

yo
ur
5. Illustrator: A participant should be able to validate his/her
sm
points by elaborating & illustrating with the help of examples.
ah
6. Co-ordination: In a discussion, there comes a situation when
bo
ob
there would be demur among members. In this situation, a good
.w
participant should be able to handle the contrary thoughts of the
or
members by leading the group to a mutually agreed argument.
dp
re
This is one of the most arduous tasks but it is certainly not
ss
impossible. He/she should be able to consolidate the scattered
.c
thoughts of the discussion to a single theme.
om
7. Leader: A candidate who keeps the whole discussion directed
towards the mentioned towards the topic shows his/her leadership
attribute. He/she shows the leadership capabilities by acting in that
role during a group discussion.
(V) Positive traits which employers look for:
 Clarity
 Fluency
 Logicality
 Coherence
 Smartness
 Curiosity
 Depth of knowledge & thoughts
 Analytical ability
 Decisive capability
 Flexibility of thoughts
 Team spirit
 Persuasiveness
(VI) Negative Traits which are to be avoided:

 Timidity
 Rudeness
yo
ur
 Incoherence
sm
 Vagueness
ah

bo
Indecisiveness
ob
 Ignorance
.w
 Lack of ideas
or
dp
 Shyness
re
 Aggression
ss
.c
om
What to do in a GD?
 Speaking is important; do not sit silently. Speak freely.

 Do not monopolize the conversation or talk too much.
 Give everyone a chance to speak.
 Maintain eye contact with everyone in the group.
 Show active listening skills.
 Do not interrupt anyone while they are speaking.
 Keep the topic on track and don‟t be irrelevant.
 Encourage someone who is silent to talk.
 Do not argue with anyone.
 Do not debate with anyone, while the group looks on.
 Do not repeat what has been said; be attentive.
 Clarify your doubts and then proceed.
 Be brief.
 Do not commit grammatical errors while talking.
(VII) How to behave in a GD?

1. A patient listener is always appreciated but that doesn't mean
you only need to listen all the time. You should make your point

yo
ur
after letting the other complete his/hers'. So, it should be
sm
discretionary.
ah
2. Another important point is to make use of right choice of words.
bo
ob
Words that are neutral & don't hurt the sentiments of anyone in the
.w
discussion are to be used.
or
3. A person should be assertive while participating in a discussion.
dp
re
This leaves a good impact on the jury & gives him a lead in the
ss
minds of other candidates.
.c
4. Candidate should be ready to face criticism from others. It
om
should be dealt with positively if it is genuine & valid. In case it is
insubstantial, it should be countered politely.
5. The active participation of the candidate in group discussion is
directly proportional to his/her chances of getting success. Thus,
one must try to participate steadily & vigorously throughout the
discussion. As silence shows lack of knowledge, shy attitude etc.
should be avoided.
6. Throughout the discussion one must ensure to maintain the
dignity & respect each participant. This depicts the traits of a leader
who considers every team-mate as equal.
7. To take the rein of discussion in your hand would certainly give
you the much needed lead in it. This would portray the leadership
quality in you.
8. Last but not the least, the capability to conclude is as important
as initiating a discussion. A conclusion should be kept precise & in
sync with the topic.
(VIII) Current Affairs Based GD Topics

 Cyber security
 Terrorism in India - Both cross border & Internal
 Farmer's suicide
 Sexual Harassment
yo
ur
 Demonetisation
sm
 Caste Based Reservation
ah

bo
Corruption in India
ob
 Global Warming
.w
 Globalisation
or
dp
 Climate Catastrophe
re
 Religion should not be mixed with politics
ss
 With Media Publishing and Telecasting Trivia, Censorship is the
.c
om
Need of the Hour
 The education system needs serious reforms
 Cricket as a National Obsession is a Detriment to Other Sports
 Privatization of Higher Education
 E-Learning: A Substitute for Classroom Learning?
 Capital Punishment should be Banned or Allowed?
 Are Peace and Non-Violence Out-dated Concepts?
Previous year GD Topics of SBI and BOB Recruitment

 Is technology killing Human Imagination?
 Indiscriminate expansion in cities causes ecological
imbalance?
 Is “selfie” an undesirable feature of the technology?
 Technology killing human imagination
 Are villages our strength or weakness?
 Marketing in banking sector
 MNC Culture is a boon or curse for a country?
 Unity in the diversity

yo
ur
13. Group Exercise: Introduced in SBI PO 2016
sm
ah
bo
The Phase-III in SBI PO recruitments includes G.D. and P.I. Last
ob
year there was a new add-on in the group discussion phase, it was
.w
a Group Exercise performed after the discussion. In this group
or
dp
exercise candidates were given a set of 8 qualities/ attributes/
re
traits/ parameters which they had to prioritise according to their
ss
understanding of the topic/ situation/ thinking ability.
.c
The most effective way to score well in it is- think rationally and
om
patiently. After the candidates had set a priority of the traits they
were provided with they are given a chance to narrate their priority
list in from of the candidates and the panel. At this time you must
be clear in your mind that why you are choosing a particular
quality at the top priority and why a thing is at last. Do not just
randomly arrange the traits as that will get you negative opinion of
the judges. Then the candidates had to perform a discussion
exercise where they all have to express their view points and the
group has to come up with a conclusion of one single priority list.
You can expect a similar scenario and exercise this year in SBI PO
2017 GD and Interview round.
Following are some exercises from SBI PO 2016 Group
Exercise/Group Discussion round. The best way to be familiar with
it is by practicing yourself. 8 Traits/ qualities are given for a topic
or situation. You have to prioritise those traits/qualities as you like
and make a list in the order of their importance as per your
thinking ability i.e. the most important quality/trait should be the
first on your list and then subsequently arrange others in
decreasing order of their priority; setting the least important at last.
While arranging do think about having a solid reason for the
setting or arrangement of those traits/qualities on your priority list.

yo
ur
sm
ah
Group Exercise 1
bo
ob
Q. Set a priority list of the following traits required for „good
.w
or
consumer handling‟.
dp
re
 Knowledge
ss
.c
 Proactive
om
 Helping attitude
 To meet people
 Manipulating
 Diplomatic
 Tech Savvy
 Positive thinking
Group Exercise 2
Q. Set a priority list of the following traits/ qualities that you

would want in your perspective team leader for a new project.
 Intelligence
 Initiative
 Obedience
 Independent thought
 Honesty
 Job Knowledge
 Expertise

yo
ur
 Focus on Goal
sm
ah
bo
ob
.w
or
dp
Group Exercise 3
re
ss
.c
Q. Set a priority list of why online retailers like Flipkart and
om
Amazon should be encouraged?
 Customer has more options

 Customer gets more discounts
 Government gets more revenue
 Packaging industry gets boost
 Transparency in billing
 Ease of eCommerce
 Fair market


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1 Adda247 | No. 1 APP for Banking & SSC Preparation

2 Adda247 | No. 1 APP for Banking & SSC Preparation

3 Adda247 | No. 1 APP for Banking & SSC Preparation

4 Adda247 | No. 1 APP for Banking & SSC Preparation

5 Adda247 | No. 1 APP for Banking & SSC Preparation

6 Adda247 | No. 1 APP for Banking & SSC Preparation

7 Adda247 | No. 1 APP for Banking & SSC Preparation

Core job elements:

9 Adda247 | No. 1 APP for Banking & SSC Preparation

A candidate‟s confidence is reflected through his or her attire,

11 Adda247 | No. 1 APP for Banking & SSC Preparation

After Document Verification, you‟ll be asked to be seated in your

Introduction is the most important part of a Personal Interview,

Attire and Body Posture

13 Adda247 | No. 1 APP for Banking & SSC Preparation

14 Adda247 | No. 1 APP for Banking & SSC Preparation

 Say Thank you

Q. What is the meaning of your name Karthik and Narayan?

Q. Okay, we will call you Pandey Ji then.

Q. You are a mechanical engineer right? Okay what is the

19 Adda247 | No. 1 APP for Banking & SSC Preparation

1. Being a fresher and engineer at the same time, we have lesser

20 Adda247 | No. 1 APP for Banking & SSC Preparation

Q. Oh that‟s so great Nikhil! It is one of the world‟s biggest

Q. Okay, Manavalan. Please listen carefully to the question

Q. Where your father is working currently?

23 Adda247 | No. 1 APP for Banking & SSC Preparation

Q. That‟s impressing. So, who is the chairman of DMRC?

Q. Alright. What are your hobbies?

Q. So you play football. Who is your favourite footballer?

25 Adda247 | No. 1 APP for Banking & SSC Preparation

26 Adda247 | No. 1 APP for Banking & SSC Preparation

27 Adda247 | No. 1 APP for Banking & SSC Preparation

28 Adda247 | No. 1 APP for Banking & SSC Preparation

1. Maintain good eye contact

5. Do not stuff your fingers in your pocket or grip your fingers

6. Nod occasionally to show your interest in the conversation

31 Adda247 | No. 1 APP for Banking & SSC Preparation

Sample Interview Q-A

Go through the following Interview Q-A session of a candidate Karthik

Q. Let us start with the Introduction, Karthik tell us about

Q. What do you know about Madhubani Painting?

Q. Where is Mithalanchal situated at?

Q. How many districts are there in Mithila?

Q. Tell us about Pradhan Mantri Jan Dhan Yojna.

Q. Where your father is working currently?

Q. Who is the present MP of Darjeeling?

Q. So, you said you have an elder brother, where does he

Q. Okay, Who is the present Railway Minister and he is from

Q. How many states were there in recently held Assembly

Q. What do you understand by a balance sheet of a Bank?

Q. Name 5 famous things in your hometown.

Many similar questions can be framed by the interviewer, but it is

General Knowledge related to the Bank/Organisation

37 Adda247 | No. 1 APP for Banking & SSC Preparation

38 Adda247 | No. 1 APP for Banking & SSC Preparation

39 Adda247 | No. 1 APP for Banking & SSC Preparation

40 Adda247 | No. 1 APP for Banking & SSC Preparation

42 Adda247 | No. 1 APP for Banking & SSC Preparation

Tools used in Currency Management

As per the Indian Coinage Act:

Denominations of coins and notes in circulation