Question 1. What Is Indian Banking Companies Act?
Banking Company is one that transacts the enterprise of banking this means that the accepting for the cause of lending or funding of deposits money from the general public repayable on call for or otherwise and withdrawable by using cheque, draft, order or otherwise”. . Dictionary meaning of the Word ‘Bank’ -The oxford dictionary defines a financial institution as “an established order for custody of cash received from or on behalf of its customers. It’s essential duty is to pay their drafts on it. It’s profits arises from the usage of the cash left employed by way of them.
Question 2. What Are The Types Of Baks?
There are diverse kinds of banks which perform in our u . S . To meet the financial necessities of different classes of people engaged in agriculture, commercial enterprise, career and so forth. Banks can be categorized into various sorts on the bases in their capabilities, ownership, abode, etc.
Classification at the Basis of functions:
• Central Bank
• Commercial Banks
• Industrial Banks
• Agricultural Banks
• Specialized Banks
• Exchange Banks
• Savings Bank
• World Bank
Classification on the Basis of Ownership:
• Public Sector Banks
• Private Sector Banks
• Co-operative Banks
Classification on the premise of Domicile
• Domestic banks
• Foreign banks
Accounts Interview Questions
Question 3. What Is Commercial Banking Structure?
The structure of baking is also called business enterprise of baking. It differs from us of a to some other us of a, depending upon financial and political situations. Over the years, the shape of banking additionally has gone through amazing modifications. The following are the numerous systems of banking.
• Unit Banking
• Branch Banking
• Group Banking
• Chain Banks
• Correspondent Banking System
Question 4. What Are The Advantages Of Unit Banking?
i) Local hobby: The unit bank serves the locality a lot better than the department financial institution. It is due to the fact the management board of the unit financial institution can absorb the selection on the spot itself. The local officers, who're permanent officers, can take important action without anticipating records from the pinnacle workplace.
Ii) Convenience of management, supervision and manage: The length of the bank could be very small, its management, supervision and manage are very easy. Along with this, wastage and postpone, which might be inherent weak point of department banking, can be conquer in unit banking
iii) Check on the formation of monopolies: There is a financial institution for each locality. In this system, there is scope for opposition handiest. Hence, there is no opportunity of the increase of monopolies.
Iv) Quick banking offerings: The services in unit banking are constantly short, due to the fact the unit bank need not wait for instructions from the significant office. There isn't any postpone in taking any decision concerning banking problems.
V) Initiative in business: The responsibility of improvement of banking lies with the financial institution itself. Therefore, the financial institution officer takes private initiative on enhancing the enterprise of the bank. Since the officers are properly acquainted with the local issues, they can take the initiative in solving issues and taking selections on diverse troubles confronting the bank. This makes the banking gadget extra elastic than what it is under the branch banking gadget.
Vi) Upholding the nearby hobby: The unit banks, in precept, are interested in upholding the local interest. The unit banks are particularly inquisitive about the improvement of industries and agriculture keeping in view the local necessities.
Vii) Other benefits: Since the unit banks are small when as compared to the branch bank, any loss does now not motive critical havoc to the credit score shape of the united states. Since the affairs of the banks are less scattered, there can not be an awful lot of fraud and irregularities. Unit banking is unfastened from diseconomies of big scale operations that are generally associated with department banking.
The Mystery of Banking Tutorial
Question 5. What Are The Disadvantages Of Branch Banking?
i) Difficulty in control, supervision and manipulate: If the expansion of the branches cross beyond a restriction, the management of branches, supervision of the sports of the branches grow to be hard. Under enlargement results in inefficient management. This also creates crimson tape, undue put off in decision and in motion. For each and the whole lot the department managers are searching for course from the advanced officers. Ultimately, the board of control is with now not simplest choice-taking however additionally its day-to-day management.
Ii) Possibility of monopoly: Under branch banking, there may be continually the opportunity of large banks to end up monopolies. Emergence of monopoly in banks proves destructive to the larger interest of the us of a.
Iii) Unnecessary competition: The branches of competing banks tempt customers with the aid of supplying special offerings and some concession. This evidently increases the expenditure of banks. Unhealthy opposition may result in the decreasing of profitability.
Iv) Expensiveness: Branch banking is highly steeply-priced. Maintenance of branches with numerous officers and supervisors for manipulate is very costly. They additionally nave spend sizable sums of cash for advertisement. All those lead greater expenses. The value of manage also will become prohibitive.
V) Continuance of non-worthwhile branches: The branches in lots of enterprise places may work profitably, but the branches in residential localities and rural locations might not get sufficient profitable business. As a result, the pinnacle office of the financial institution has to run non-profitable branches forcibly.
Vi) Savings of rural locations are transferred to city locations for investments: Normally, the extra of deposits mobilized in rural branches are transferred to branches in huge cities for funding. Investment possibilities are denied within the rural regions. Banks keep in mind that funding of funds in larger towns and cities are extra profitable than in smaller locations and backward regions. This hinders financial development of backward regions.
Banking Interview Questions
Question 6. What Is Mixed Banking?
Mixed banking is that device of banking beneath which the industrial banks perform the dual function of commercial banking and funding banking, i.E., it combines deposit and lending pastime with investment banking. Commercial banks usually provide both short-time period as well as medium time period loans. The German banking system is the great instance of blended Banking where banks are authorised except, lending hobby, investment functioning additionally.
Question 7. What Are Commercial Banks?
The Banks which carry out all kinds of banking enterprise and generally finance change and trade are referred to as industrial banks. Since, their deposits are for a quick period, those banks generally boost brief time period loans to businessmen and buyers and keep away from medium and long term and long time lending.
Modern Banking Tutorial Mortgage bank Interview Questions
Question 8. What Are The Functions Of Rbi?
The features of Reserve Bank of India (RBI) cab be widely categorised into to as follows:
1) Monetary Functions:
a) Bank of Note Issue
b) Currency Chest
c) Banker to Government
d) Bankers Bank
e) Lender of the Last Resort
f) Banker, Agent & Adviser to the Government
g) Custodian of the Cash Reserves of Commercial Banks
h) Custodian of Foreign Balances of the Country
i) Controller of Credit
2) Non-Monetary Functions:
a) Supervisory Functions
b) Promotional Functions
Question nine. What Are Resources Of Ifci?
The shareholder of Industrial Finance Corporation of India are the IDBI (previously those share have been held by means of the Reserve Bank and the Central Government) and banking and different economic institutions, the assets of the groups encompass its share capital and reserve, public deposits, advances from Reserve Bank of India, the sector Bank and different global organizations and bonds and debentures issued inside the open marketplace.
Bank Clerk Interview Questions
Question 10. What Are Functions Of Ifci?
The organisation plays 3 critical capabilities;
• It offers loans and advances to commercial issues. It presents each rupee loans and foreign currency loans.
• It guarantees loans raised with the aid of the industrial worries within the marketplace.
• It underwrites the problem of stocks, stocks, bonds, debentures of business issues supplied such shares, stocks and so forth., are disposed of by using the business enterprise inside a duration of 7 years from the time of acquisition. It additionally subscribes to the equity and choice shares and debentures of businesses. In recent years, IFCI assists industrial units under the gadget leasing scheme.
Question 11. What Are The Functions Of The Sfc?
All types of commercial worries can get accommodation from SFCs and on this feel the scope of activities of nation businesses is wider than that of (IFCI). SFCs can:
• Guarantee loans raised through commercial concerns which can be repayable inside a period now not exceeding twenty years and that are floated in the marketplace.
• Underwrite the problem of stocks, stocks, bonds pr debentures of commercial issues;
• Grant loans or advances to commercial concerns repayable inside a period now not exceeding 20 yr; and
• Subscribe to debenture floated by way of commercial concerns.
Banking Operations Interview Questions
Question 12. Define Money Market And Features Of Money Market?
According to Crowther, “Money market is a collective name given to numerous companies and institutions that deal inside the diverse grades of close to cash”. Features of Money Market:
• Money marketplace is involved with the borrowing and lending of short-time period budget most effective.
• For the borrowing and lending price range, it isn't always necessary that the borrower and the lender must meet each other head to head at a specific region. They can carry on negotiations and impact their financial transactions through telephone, telegram, mail or some other method of communication.
• A money market isn't a unmarried homogeneous marketplace. It is composed of several specialized sub-markets, inclusive of call market, treasury invoice marketplace, cut price marketplace, collateral loan market, and so on.
• As in some other marketplace, within the cash marketplace additionally, there's a fee for the money borrowed and lent. That fee is known as interest.
• There are a huge number of debtors and lenders within the cash marketplace.
• A massive quantity of brief-time period finances is traded in cash market.
• Money marketplace is the supply of running capital finance. It is the fundamental of running capital finance.
Accounts Interview Questions
Question thirteen. What Is Money Market Mutual Funds (mmmfs)?
A Scheme of MMMFs turned into delivered by using RBI in 1992. The purpose become to offer an extra short-term street to man or woman investors. In November 1995 RBI made the scheme greater flexible. The existing guidelines permit banks, public economic establishments and also personal quarter establishments to set up MMMFs. The ceiling of Rs. 50 crores on the scale of MMMFs stipulated earlier, has been withdrawn.
MMMFs are allowed to trouble devices to company enterprises and others on par with other mutual budget. Resources mobilised by way of MMMFs are actually required to be invested in name money, CD, CPs, Commercial Bills bobbing up out of genuine exchange transactions, treasury bills and authorities dated securities having an unexpired adulthood as much as 365 days. Since March 7, 2000 MMMFs had been brought underneath the purview of SEBI policies.
Question 14. What Are The Features Or Deficiencies Of Indian Money Market?
Indian money marketplace is exceptionally underdeveloped whilst in comparison with superior markets like New York and London Money Markets. Its' main functions / defects are as follows
II. Lack of Co-ordination and Integration
III. Diversity in Interest Rates
IV. Seasonality of Money Market
V. Shortage of Funds
VI. Absence of Organized Bill Market
VII. Inadequate Banking Facilities
VIII. Inefficient And Corrupt Management
Question 15. What Is E-purse?
An electronic purse is the store of fee on a card, which may be utilized in a manner much like cash to pay for tour or for different small-scale transactions. Electronic handbag is the secure records stored in a committed place or document of a smart-card. The value is located on the cardboard in one in every of three ways:
(i) Preloaded on to the card (within the same way as telephone playing cards), without the opportunity to feature further price. The intention is that the card is discarded whilst the price is expired,
(ii) Added to the cardboard on the time the card is issued, or while the e-purse application is delivered to an existing card, and
(iii) Additional price added to an current e-purse or pinnacle-up
HDFC Bank Interview Questions
Question 16. What Are The Neft Advantages To The Customers Over The Other Modes Of Funds Transfer?
NEFT gives many advantages to the customers over the opposite modes of finances transfer as listed underneath:
•The remitter want not send the bodily Cheque or Demand Draft to the beneficiary.
•The beneficiary need now not go to his/her financial institution for depositing the paper units.
•The beneficiary want no longer be worried of loss/robbery of bodily gadgets or the chance of fraudulent encashment thereof.
•Credit confirmation of the remittances sent through SMS or e-mail.
• Remitter can provoke the remittances from his domestic/place of business the usage of the net banking also.
• Near actual time switch of the finances to the beneficiary account in a comfy way.
Question 17. What Are The Types Of Insurance Organization?
The Insurance business enterprise developed in exceptional bureaucracy with the benefits of insurance practices. Some of the bureaucracy are
• Self Insurance
• Individual Insurer
• Joint Stock Companies
• Mutual Companies
• Co-operative Insurance Organization
• Lloyd’s Association
• State Insurance
IBPS Bank PO and Clerk Interview Questions
Question 18. What Are The Features Of Risk Management?
a) Risk management is a systematic technique to the trouble of handling most effective natural risks and now not any other dangers faced by using an man or woman or commercial enterprise.
B) Risk control offers importance to insurable and uninsurable dangers and to me suitable techniques for troubles handling all pure risks.
C) It in particular emphasizes decreasing the price of handling chance by means of the use of appropriate methods.
Banking Interview Questions
Question 19. 18. What Are The Principles Of Risk Insurance Management?
The standards of chance insurance management delivered out through the following:
(1) Principles of Risk Identification
(2) Principles of Risk Analysis
(3) Principles of Risk Assessment
(4) Principles of Taking Corrective Decision
(5) Principles of Evaluation
(6) Principles of Alternative Course of Action
(7) Principles of Risk Control
(eight) Principles of Risk Retention
(nine) Principles of Risk Transfer
Question 20. What Is Life Insurance?
Life Insurance is a settlement imparting for payment of a sum of money to the man or woman confident or the character entitled to acquire the identical at the taking place of sure occasions, usually dying lifestyles coverage is defined as a mutual settlement by which one celebration has the same opinion to pay a given amount of cash upon the taking place of a specific occasion contingent upon the period of human lifestyles, in attention of the payment of a smaller sum straight away, or in periodical payments through the alternative party.
Syndicate Bank Interview Questions
Question 21. What Are The Objectives Of Assurance Are Organized In Life Insurance Corporation Of India?
Life Insurance Corporation of India changed into organised with the targets of warranty of
a) Family protection
b) Provision for antique age
c) Tax concession
d) Housing loans
e) Loans superior for instructional purposes and
f) Donation to charitable institutions