IBPS-SBI: INTERVIEW MATERIAL-EXPECT QUESTIONS FROM THESE DETAILS

IF YOU ARE NOT ATTENDING BANK INTERVIEWS IN INDIA, YOU can SKIP THIS PAGE!!

These information is for IBPS-SBI INTERVIEWS: Prepared by Ranjithkumar, c.c ltd, Coimbatore

What is banking?

Core function of banking is taking deposits from public for the purpose of lending & Investment.

Other services are?

1. Funds Transfer
1. Cheque
2. DD
3. RTGS (Real Time Gross Settlement) - 2 lakhs and above for transaction.
4. NEFT (National Electronic Fund Transfer) - No limit, bunch settlement.

2. Collection of Bills
3. Lending of Lockers
4. Selling gold coins,insurance,mutual funds
5. Net-banking
6. Credit card
7. Demat a/c
8. Purchase and selling of foreign currency
9. Merchant Banking:

• They act as intermediaries to moblise funds from investors to entrepreneur.
• They co-ordinate all the requirements of IPO

1. Regulatory clearance from SEBI, NSE, BSE.
2. They appoint Registrar, bankers, brokers.
3. They arrange underwriters.
4. They prepare detail project report, prospectus, and viability report.

What is meant by Cheque?

It is a negotiable instrument. It is an order by the Account holder to bank to pay certain amount to certain person.

What is meant by DD?

           It is a banker’s chq to the branch of same bank to pay specific amount to specific person or order.

Difference between Cheque & DD

Cheque	DD
it is issued by the Account Holder it may bounce back if funds are insufficient in Account	it is issued by the banker DD does not bounce because customer pays the value of dd in advance.

CTS (Cheque Truncation System)

Instead of sending physical form, the electronic replica form is sent to the clearing house

Crossing of Cheque

   When two lines are crossed on left hand side top-corner of a Cheque, it cannot be encashed over the counter.it needs to routed through an account..

A/c payee crossed chq

  It should be credited to payee's account only.

What are the things shown in chq?

• Date
• To whom should be paid
• Amount in numbers and words
• IFSC & MICR Code
• Time period (it is valid for 3 Months)
• Chq no
• Space for Customer Signature

Types of Deposits a/c
1) Demand Deposits
      a) Saving a/c
      b) Current a/c

Savings a/c	Current a/c
SB a/c can be opened by individuals individually, jointly and non-profit organizations like NGOs, Govt. departments and trusts etc.. Interest paid. Number of transaction limited.	Current Account can be opened for business purpose. No interest paid. Number of transactions not limited.

  
2) Term deposits

It has fixed maturity period, higher interest is paid.eg RD, Fixed Deposit

Loans
Priority sector loans (40% of Total Advances)

• Agriculture
• MSME (Micro, Small and Medium Enterprises)
• Small Scale Business
• Transport sector loans
• Self help group
• SC, ST loans
• Govt. scheme lending
• Education loan
• Home loan

Non-Priority Sectors

    Large industrial loans, large business loans, corporate loans. e.g. Personal loan.

Types of Loans

• Working Capital Loan-ex: OCC,KCC AND OVERDRAFTS
• Term Loan:   EX: HOME LOANS

What is CBS?

CBS is Core Banking System. A branch customer becomes the bank customer. All the branches of a bank connected to each other through central server.

What is RBI?

RBI is Reserve Bank of India.

Functions of RBI?

• Its Bankers’ Bank
• Banker to the Govt. of India
• Control the Banking system and credit
• Execute monetary policy
• Manages the foreign reserves
• Issues currency

Credit Policy ( Always go to RBI official web site to know about the present rates.)

• CRR CRR is Cash Reserve Ratio. ALL BANKS in India should maintain 4% of their total deposits in RBI in the form of cash

• SLR

SLR is Statutory Liquidity Ratio. Banks in India should maintain 23% of their total deposits in RBI in the form of bonds, gold & cash.

• Repo Rate

It is a lending rate of RBI. It is now 7.75%. (The rate is applied for LAF-Liqidity Adjustment Fund, which banks use for their day to day shortage)

• Reverse Repo Rate

It is a deposit interest rate of RBI. It is now 7.75%.
Bank rate :8.75% ( Banks avail this facility against their outstanding of bills receivable)

What is Inflation?

decrease in

Currency values and 

increase in

Prices level is called inflation.

How Inflation is Controlled by RBI?

• When ever inflation goes up, RBI intervenes to control the money supply.
• They raise Repo Rate. They may raise CRR & SLR
• When ever Repo,CRR & SLR are raised, banks also raise the Interest rates.
• When ever bank raises the interest rates, people avoid taking loans from banks. So automatically money supply comes down & inflation also goes down.

What is SHG?

SHG is Self Help Group. It’s an association of 10 to 20 members. The purpose of self help groups are

1. Women empowerment 2,
   Eradication of poverty
2. THEY save among them selves and lend among them selves. After six month they can borrow money from Banks; Govt.  also gives subsidy.

Banking Ombudsman

He is the representative of RBI. He is appointed by RBI for the sole purpose of redressal of complaints.

Financial Inclusion

It is a scheme to bring all the people especially urban poor,village poor & BPL (Below Poverty Line) into the banking stream, public sector banks are asked to go to the door steps of these people to open a account with minimum KYC norms.