Presents

Interview Digest
for

IBPS Clerk Common

Interview

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What you should do from Today:

Read Daily Newspaper.

Buy Formal Cloths if you not have.
Look Up Daily Current Affairs.
Get Mirror and Speak in Mirror (To Increase Confidence Level).
Read Our Capsule At Least 4-5 Times till Interview.

In Clerk Interview panel may ask you first read newspaper of local language like
Punjab candidates have to read Punjabi, Gujarat Candidate read Guajarati and
Haryana Candidates read Hindi paper. So if you are untouched with your local
language start reading newspaper. This is just process to recognize candidates local
language knowledge. Interview panel may talk with you in local language, so you
should reply them with same language. Dont use already learnt English sentence,
start with local language and speak confidently. Never Argue with interview panel
even some time they wrong in any topic. Be gentle and sit with smiley face.
What to Wear :
For Men:
Wear Formals.
Aviod jeans, t-shirts and fancy wear.
Your clothes should be neat and well ironed.
Do not wear flashy jewellery. Wearing watch and wedding ring is acceptable.
Shoes should be well polished.
Hairs should be short and neat.
You should be clean shaven.
Avoid String Deo or perfumes. You
can use light Deo.
And you should be comfortable in
what you wear.
For Women:
Use Plain Cotton Sarres or Salwar
Kameez with Plain Dupatta.
Avoid Low cut necklines.
Prefer light shades.
Avoid too much makeup and excess
jewellery.
Use low heels.
Some Common Questions Asked in
Last Year Interview:
i.
ii.
iii.
iv.
v.
vi.

What is Today News Paper Headline

(So Should Read Newspaper of
Interview Date).
Yesterday Newspaper Headline.
Question on Any Current & Popular
News.
Why Bank?
Why Bank Should Hire You.
About Your Home Town (Famous

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vii.
viii.
ix.

Places, Famous Dishes etc.)

How to reach at interview place.
About Gap (if any)
About Last Job (If any).
Why IBPS Conduct Interview:-

Interviews are face-to-face discussions between the interviewer and the interviewee.
Many a times, I have seen the interviewees nervous, thinking what the interviewer
would ask, how they would answer, would he/she be able to impress them or not.
What they need to understand is that it is supposed to be a two-way process. The
bank intends to know more about the candidate. Interview is the first step towards
introduction and this introduction is first Impression. It is important to make a good
impression at an interview. Main motive of Interview is also to check Candidate
confidence level and his attitude towards banking.

Introduction Styles:- (Say Wish first According to Time, Some

candidates
forget
to
wish
due
to
nervousness)
o

First of all, I would like to thank you for giving me this opportunity.
It's my pleasure to introduce myself. My name is Chokkalingam, born
in Dindigul. Coming to my educational qualification I did BTech from
xyz college. Coming to my family background, my family consists of 5
members, me, my younger brother and younger sister, Father and
Mother. My Father is a Businessman, Mother is a homemaker, Sister
is taking care of my grandfather and grandmother, Brother is working
as Customer support representative. My hobbies are listening music,
surfing internet etc. I am flexible and can work in shifts. Capable of
taking multiple tasks if required.

First of all thank you for giving this opportunity to introduce myself to
you. I am Rasool. I am coming from gangavathi. I have completed
Bcom from Sri kolli nageshwar rao gangaiya gangavathi first grade
college gangavathi. I have a small family consisting of 3 members my
father is really estate business man my mother is housewife. My
strength are hard work, self-motivating, helping nature & easily
adjustable to any environment. My weakness is to believe the other
easily. I would like to spend my free time by net my family members,
with my friends & listening music etc. I don't have short term & long
term goals my only goal is to give the best service the organization
where I work. I don't have any experience but its the time to prove
once opportunity comes. That's all about me once again thank you sir.

First of all I would like to thanks you for giving me this opportunity.
My name is Sikha. About my education qualification. I have done my
graduation from ranchi university in 2009 after that I started
preparing for competitive exams. I have done my schooling from
central school, coming to my family. We are 6 in no. My father is
doctor and, my mother is house wife. I have 3 sisters all got married.
My hobbies are playing games and watching reality shows on TV. My

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goal is to start my career by working in company like yours so that I

can get chance to learn many things. That's all about me.
Note : After Introduction they may ask you for some question related to your
introduction,
so
give
your
introduction
truly
with
confidence.

Why should Bank hire you?

Fresher: - Sir, as I am fresher, am hard worker, self-motivating person, easily

adaptable with any kind of environment. I always wanted to be as part of your
company and Ill make sure you I'll give my 100% efforts towards development of
your
company
with
my
best
knowledge.
Experienced:As I said that I have worked with XYZ Company for last 2 years and got lots of
experience along with discipline punctuality and dedication in habituated which I
think is a rare thing to found in one person.

For B.Tech Students:-

If you are engineer candidate than most probably question may asked to you for you.
You are engineer, Why Bank Job??
Ans. This is known by all that time very less job is available in market. Thats why
now days B.Tech students opted bank as carrier. So be ready for Answer.
Dont give the answer bluntly that we are not getting any other jobs, so that we are
trying bank jobs. If you say like this there will be no positive impact on you
1. B.Tech developed my technical skills, made my mind sharper and developed my
analytical ability and I also developed my leadership qualities. i organized many
events. I am also having good communication skills, so that I can provide customer
services
2. When i applied for engineering through IT, it was a booming sector, but after
completion of it there was a condition of recession .seeing this condition I realized
that IT sector is not a safe sector for our future hence because of my interest in a
social, secure and highly reputed job ,i applied for banking.
3. In it sectors, there will be no permanent jobs, where as in bank jobs there will be
permanent jobs means there will be security for bank jobs.
4. The jobs in banks are considered very well because it gives good salary. It is least
affected by recession and is secure. The area of posting will be in the own state of the
candidate. Getting loan sanctioned is much easier when required.
Expected Question According To Your Qualification:I.

II.
III.
IV.

BTech (CSE & IT), MCA, BCA, MSC (IT):- Interview Panel expected
you are computer genius so be ready for any Basic computer question.
Some topics like Cloud Computing, Server, Wires, Networking, Database
and other basic computer hardware and software question. JUST READ
BASIC ABOUT THESE TOPICS.
BTech (ECE):- Interview Panel may asked you for 8084 and 8085 just
basic so be ready for that topic or they may asked you any basic computer
question.
BTech( Mechanical, Electrical, Civil & Other):- Interview Panel
may ask you about any mechanical part, electrical part which are mostly
used in our daily life. So be ready for basic topics of your streams.
B.com, M.com (Commerce Student):- Actually bank job is made
especially for you so dont take tension. Interview panel already impressed

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with your qualification. But you must prepare your all economics terms,
banking terms and other commerce terms. Interview panel expects you
know better than other stream student so be ready for some topics like.
Money Measures: - Mo, M1, M2, M3, L1,
M0:- Cash with public + RBI Deposit (By Foreign Bank)+ Bank
deposit to RBI. It also called reserve money.
M1:- M0+ Demand Deposit.
M2:- M1+ Saving Account Deposit+ Term Deposit (FD).
M3:- M2+ Borrowing Money.
L1:- M3+ Post office deposits.
For Science Steam Candidates (Msc, Bsc):- You may ask question
related to your field. Some Question like photosynthesis, plant
development, amiba or any other basic thing which is known by everyone.
So be ready for basic questions.
For MBA Stream Candidates:- You are prefect for banking and its
work. So be ready for some hard question related to marketing or other
management level question.
For Other Streams: Do Read Your subject popular topics which are
known by everyone. Clear your all concept related to your subject.

V.

VI.
VII.

Top 5 Mistakes to avoid in IBPS Clerk Common Interview :

i.
ii.

iii.

iv.

v.

Inadequate or No Banking Knowledge : you should have basic

knowledge about banking terms as there will be definitely 4-5
questions related to banking.
No knowledge of Current Affairs : you should have knowledge
about last 20 days current affairs and issues and your views should be
clear about it. For eg:- Panel may ask you your views about any
political party.
Relying too much on others Experience : It is the most common
mistake that candidates makes where they rely too much on others
interview experience and try to answer same way as others. Banks
dont want such candidates. Others Experiences are for learning not
for copy.
Not Knowing about your goals : you should be aware about your
goals and why did you choose bank job there should be valid reason
for it. We suggest you to tell the truth instead of borrowing from
others.
Nervousness : This is the common physical condition that affect
candidates interview. You should pay attention to what the panel is
asking and respond according to it. If you dont know the answer then
say I dont know or if you have read about it but forget then say Sir,
I am unable to recall.

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Banking Gk : Important For IBPS CLERK Interview

Headquarters and Punch lines of Public Sector Banks in India:

Name of the Bank

Allahabad Bank
Andhra Bank
Bank of Baroda
Bank of India
Bank of Maharashtra
Canara Bank
Central Bank of India
Corporation Bank
Dena Bank
Indian Bank

Head
Office
Kolkata
Hyderabad
Baroda
Mumbai
Pune
Bengaluru
Mumbai
Mangalore
Mumbai
Chennai

Indian Overseas Bank

Oriental Bank of Commerce
Punjab and Sindh Bank
Punjab National Bank
Syndicate Bank
Union Bank of India
United Bank of India
UCO Bank
Vijaya Bank

Chennai
New Delhi
New Delhi
New Delhi
Manipal
Mumbai
Kolkata
Kolkata
Bangalore

Slogan
A Tradition of Trust
For all your needs
India's International Bank
Relationship beyond banking
One Family, One Bank
Together we can
Central to you since 1911
Prosperity to All
Your Trusted Family Bank
Taking Banking Technology to the Common
Man
Good people to grow with
Where Every Individual is Committed
Where service is a way of Life
The name you can bank upon
Faithful, Friendly
Good people to bank with
The Bank that begins with U
Honours yours trust
A friend you can bank upon

List Of CMDs of Banks

Name of Bank

Name of CMD

Bank of Baroda
Andhra Bank

S.S Munda
C.V.R Rajendran

Allahabad Bank
Bank of India
Bank of Maharashtra
Canara Bank
Central Bank of India
Corporation Bank
Dena Bank
Indian Bank
Indian Oversease Bank

S.S Panse
V.R Iyer
Sushil Muhnot
R.K Dubey
Rajeev Rishi
Sadhu Ram Bansal
Ashwini Kumar
T.M Bhasin
M. Narendra

Oriental Bank of Commerce

S.L Bansal

Punjab & Sind Bank

Punjab National bank
Syndicate Bank
UCO Bank
United Bank of India
Vijaya Bank

D.P Singh
K.R kamath
Sudhir Kumar Jain
Arun Tiwari
Archana Bhargava
V.Kannan

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SBI
IDBI

Smt. Arundhati Bhattacharya

M.S Raghavan

Bhartiya Mahila Bank

Smt Usha Ananthasubramaniam

Q1. What is Repo Rate ?

Repo rate is the rate at which commercial banks borrows rupees from RBI.
Whenever banks have any shortage of funds they can borrow it form RBI.
A reduction in the repo rate will help banks to get money at cheaper rate.
When the repo rate increases borrowing form RBI becomes more expensive.
It is an instrument of monetary policy.
Current Repo Rate : 7.75%
Repo is Repurchase Agreement. An agreement to sell a security for a specified
price and to buy it back later at another specified price. A repo is essentially a secured
loan.
Q2. What is Reverse Repo Rate ?
Reverse Repo rate is the rate at which RBI borrows money from commercial
banks.
Banks are always happy to lend money to RBI since their money is in the safe
hands with a good interest. An increase in reverse repo rate can cause the
banks to transfer more funds to RBI due to this attractive interest rates.
One factor which encourages an organisation to enter into reverse repo is that
it earns some extra income on its otherwise idle cash.
Current Reverse Repo Rate : 6.75%
Q3. What is MSF ?
Marginal Standing Facility (MSF) : It is the rate at which banks borrow
funds overnight from the Reserve Bank of India (RBI) against approved
government securities. This facility is effective from May 9, 2011.
Size of MSF: Minimum amount of Rs. One crore and in multiples of
Rs. One crore thereafter.
Current MSF : 8.75%
Q4. What is Bank Rate ?
The interest rate at which at central bank lends money to commercial banks.
Often these loans are very short in duration.
Managing the bank rate is a preferred method by which central banks can
regulate the level of economic activity.
Lower bank rates can help to expand the economy, when unemployment is
high, by lowering the cost of funds for borrowers.
Conversely, higher bank rates help to reign in the economy, when inflation is
higher than desired.
Current Bank Rate : 8.75%
Q5. What is CRR, SLR ?
CRR (Cash Reserve Ratio): Cash reserve Ratio (CRR) is the amount of
funds that the banks have to keep with the RBI.
If the central bank decides to increase the CRR, the available amount with the
banks comes down.
RBI uses the CRR to drain out excessive money from the system.

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Scheduled banks are required to maintain with the RBI an average cash
balance, the amount of which shall not be less than 4% of the total of the Net
Demand and Time Liabilities (NDTL), on a fortnightly basis.
Current CRR : 4%
SLR (Statutory Liquidity Ratio) : SLR is the amount a commercial banks
needs to maintain in the form of cash, or gold, or govt. approved securities
(Bonds) before providing credit to its customers.
SLR rate is determined and maintained by RBI in order to control the
expansion of the bank credit. . It is helpful to control the expansion of the
Bank credits.
By changing SLR rates, RBI can increase or decrease bank credit expansion.
Also through SLR, RBI compels the commercial banks to invest in the
government securities like govt. bonds.
SLR is used to control inflation and propel growth. Through SLR rate the
money supply in the system can be controlled effectively.
Current SLR : 4%

Q6. What are the tools to control Liquidity ?

CRR
SLR(Adjustment of CRR & SLR)
Bank rate (Bank rate policy).
Q7. Cheque and Demand Draft ?
Cheque is a negotiable instrument containing conditional order to pay sum of
money to the person mentioned on it or to the bearer of the instrument.
Drawer: The person who draws the cheque is known as the drawer. The
person whose name the account stands is the drawer.
Drawee: The bank on which the
cheque is drawn is known as the
drawee.
Payee: The person in whose
favor the cheque is made payable
is the payee. If the cheque is
drawn payable to self, the drawer
himself would be the payee of the
cheque.
Types of Cheques :
1. 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. However, such
cheques are risky; this is because
if such cheque is lost, the finder
of the cheque can collect
payment from the bank.
2. Order Cheque: a cheque which
is paid to a named person with
the words 'or order' after the
payees name, showing that he or
she can endorse it and pass it to someone else if desired
3. Uncrossed/Open Cheque when a cheque is not crossed, it is known as an
"Open Cheque" or an "Uncrossed Cheque". The payment of such a cheque can

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4.

5.
6.
7.
8.

be obtained at the counter of the bank. An open cheque may be a bearer

cheque or an order one.
Crossed Cheque Crossing of cheque means drawing two parallel lines on
the face of the cheque with or without additional words like "& CO." or
"Account Payee" or "Not Negotiable". A crossed cheque cannot be encased at
the cash counter of a bank but it can only be credited to the payee's account.
Anti-Dated Cheque If a cheque bears a date earlier than the date on which
it is presented to the bank, it is called as "anti-dated cheque". Such a cheque is
valid up to three months from the date of the cheque.
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 postdated cheque cannot be
honored earlier than the date on the cheque.
Stale Cheque If a cheque is presented for payment after six months from the
date of the cheque it is called stale cheque. A stale cheque is not honored by
the bank.
Mutilated cheque: It is a damaged cheque.

Demand Draft :
A demand draft is an instrument used for effecting transfer of money. It is a
negotiable instrument.
Difference between a Cheque and DD:
1. A cheque is issued by an individual whereas a demand draft is issued by a
bank.
2. A cheque is drawn by an account holder of a bank, whereas a draft is drawn by
one branch of a bank on another branch of the same bank.
3. In a cheque, the drawer and the drawee are different persons. But in a draft
both the drawer and the drawee are the same bank.
4. A cheque is defined in the Negotiable Instrument Act, 1881, whereas a
demand draft has not be precisely defined in the NI Act.
5. A Cheque can be dishonored for want of sufficient balance in the account.
Whereas a draft cannot be dishonoured.Hence there is certainty of the
payment in the case of a demand draft.
6. Payment of a cheque can be stopped by the drawer of the cheque, whereas, the
payment of a draft cannot be stopped.
7. A cheque can be made payable either to a bearer or order. But a demand draft
is always payable to order of a certain person.
Q8. What is Cheque Truncation System :
Cheque Truncation is the process of stopping the flow of the physical
cheque issued by a drawer at some point with the presenting bank en-route to
the drawee bank branch.
In its place an electronic image of the cheque is transmitted to the drawee
branch by the clearing house, along with relevant information like data on the
MICR band, date of presentation, presenting bank, etc.
Cheque Truncation speeds up the process of collection of cheques resulting in
better service to customers, reduces the scope for clearing-related frauds or
loss of instruments in transit, lowers the cost of collection of cheques, and
removes reconciliation-related and logistics-related problems, thus
benefitting the system as a whole.
Benefits :
1. Shorter clearing cycle
2. Superior verification and reconciliation process
3. No geographical restrictions as to jurisdiction

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4. Operational efficiency for banks and customers alike

5. Reduction in operational risk and risks associated with paper clearing
Q9. What are KYC Norms ?
KYC guidelines was introduced by RBI for all banks in the year 2002.
Know Your Customer - KYC enables banks to know/ understand their customers and
their financial dealings to be able to serve them better.
The components of KYC Identity proof , address proof , photographs
The objective of KYC guidelines is to prevent banks from criminal money
laundering activities.
Q10. What is BSBDA Account (BASIC SAVING BANK DEPOSIT)?
Under the guidelines issued on August 10, 2012 by RBI: Any individual,
including poor or those from weaker section of the society, can open zero
balance account in any bank. BSBDA guidelines are applicable to "all
scheduled commercial banks in India, including foreign banks having
branches in India".
All the accounts opened earlier as 'no-frills' account should be renamed as
BSBDA. Banks are required to convert the existing 'no-frills' accounts into
'Basic Savings Bank Deposit Accounts'. The 'Basic Savings Bank Deposit
Account' should be considered as a normal banking service available to all
customers, through branches . The aim of introducing 'Basic Savings
Bank Deposit Account' is very much part of the efforts of RBI for furthering
Financial Inclusion objectives.
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.
Q11. What is CBS (Core Banking Solution) ?
Core Banking Solutions is the process, where branches of the bank are connected to a
central host and the customers of connected branches can do banking at any breach
with core banking facility.
Advantages for both to the customers & the banks:
Customer:
Transactions of business from any branch.
Lower incidence of errors.
Better funds management due to immediate availability of funds.
Banks:
Better customer service.
Availability of accurate data.
Increased business volume with better asset liability management and risk
management.
Q12. What is NEFT ?
NEFT stands for National Electronic Fund Transfer.
NEFT enables funds transfer from one bank to another but works a bit
differently than RTGS.
NEFT is slower than RTGS.
The transfer is not direct and RBI acts as the service provider to transfer the
money from one account to another. You can transfer any amount through
NEFT, even a rupee.
There is no Minimum & Maximum Limit in NEFT.

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Need of NEFT: We can use this facility if we want to transfer funds online in a day
or two. NEFT can make life easier for those who need to send money to their parents
or children living in another city. It cuts the trouble of issuing a cheque or draft and
posting it. It can also be done through internet banking.
Q13. What is RTGS ?
RTGS stands for Real time gross settlement.
RTGS system is funds transfer systems where transfer of money or securities
takes place from one bank to another on a "real time" and on "gross" basis.
Settlement in "real time" means payment transaction is not subjected to any
waiting period.
The transactions are settled as soon as they are processed. "Gross settlement"
means the transaction is settled on one to one basis without bunching or
netting with any other transaction.
Once processed, payments are final and irrevocable.
Minimum & Maximum Limit of RTGS: 2 lakh and no upper limit.
Q14. What is Priority Sector Lending?
Priority sector lending include only those sectors as part of the priority sector,
that impact large sections of the population, the weaker sections and the sectors
which are employment-intensive such as agriculture, and Micro and Small
enterprises.
Priority Sector: Priority sector refers to those sectors of the economy which may
not get timely and adequate credit in the absence of this special dispensation.
Typically, these are small value loans to farmers for agriculture and allied activities,
micro and small enterprises, poor people for housing, students for education and
other low income groups and weaker sections.
Categories under priority sector :
Agriculture
Micro and Small Enterprises
Education Housing
Export Credit
Others
Loan Limit under Priority Sector :
For education loan : Loans to individuals for educational purposes
including vocational courses upto `10 lakh for studies in India and `20 lakh
for studies abroad are included under priority sector.
For housing loans : Loans to individuals up to `25 lakh in metropolitan
centres with population above ten lakh and `15 lakh in other centres for
purchase/construction of a dwelling unit per family excluding loans
sanctioned to banks own employees.
Q15. What is Debit Card?
A debit card (also known as a bank card or check card) is plastic Money that provides
the cardholder electronic access to his or her bank account at a financial institution.
The customers can use this card for purchasing goods and services at different places
in lieu of cash. The amount paid through debit card is automatically debited
(deducted) from the customers account.
Q16. What is Credit card?
Credit cards are issued by the bank to persons who may or may not have an account
in the bank. Just like debit cards, credit cards are used to make payments for
purchase, so that the individual does not have to carry cash. Banks allow certain
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credit period to the credit cardholder to make payment of the credit amount. Interest
is charged if a cardholder is not able to pay back the credit extended to him within a
stipulated period. This interest rate is generally quite high.
Leading credit cards: VISA, MASTER.
Q17. What is Online Banking, Phone Banking?
Online Banking: Nothing but any where banking. The accessing of bank
information, accounts and transactions with the help of a computer through the
financial institution's website on the Internet is called online banking. It is also called
Internet banking or e-banking.
Phone Banking: In case of phone banking, a customer of the bank having an
account can get information of his account, make banking transactions like, fixed
deposits, money transfers, demand draft, collection and payment of bills, etc. by
using telephone.
Q18. What is bank insurance or Bancassurance?
The sale of insurance and other similar products through a bank. This can help the
consumer in some situations; for example, when a bank requires life insurance for
those receiving a mortgage loan the consumer could purchase the insurance directly
from the bank.
The Bank Insurance Model ('BIM'), also sometimes known as 'Bancassurance', is
the partnership or relationship between a bank and an insurance company whereby
the insurance company uses the bank sales channel in order to sell insurance
products.
Q19. What is Financial inclusion?
Financial inclusion means providing sound and affordable financial services to the
"unbanked, those who do not have access to the formal financial system.
Financial inclusion is more than an economic issue - it is a legal and regulatory
reform process.
Q20. What are the types of Bank Accounts ?
Savings Bank Account: Savings
Bank Accounts are meant to
promote the habit of saving among
the citizens while allowing them to
use their funds when required.
o The rate of interset is very
lov in Saving bank account.
o The main advantage of
Savings Bank Account is its
high liquidity and safety.
o Maximum 25 transactions
in a day is allowed.

Bank Fixed Deposits: Bank

Fixed Deposits are also known as
Term Deposits. In a Fixed Deposit
Account, a certain sum of money is
deposited in the bank for a
specified time period with a fixed
rate of interest. The rate of interest
for Bank Fixed Deposits depends
on the maturity period. It is higher in case of longer maturity period.

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There is great flexibility in maturity period and it ranges from 15days

to 5 years.

Current Account:Current Account is primarily meant for businessmen,

firms, companies, public enterprises etc. that have numerous daily banking
transactions. Current Accounts are cheque operated accounts meant neither
for the purpose of earning interest nor for the purpose of savings but only for
convenience of business hence they are non-interest bearing accounts.
o There is no restriction on the number and amount of deposits.
o There is also no restriction on the withdrawals.
o Generally bank does not pay any interest on current account.
Nowadays, some banks do pay interest on current accounts.
o Current account is of continuing nature and as such there is no fixed
period.
o Current account enables the account holder to obtain overdraft
facility.

Demat Account: Demat refers to a dematerialised account. Demat account

is just like a bank account where actual money is replaced by shares. Just as a
bank account is required if we want to save money or make cheque payments,
we need to open a demat account in order to buy or sell shares.

Recurring Bank Deposits: Under a Recurring Deposit account (RD

account), a specific amount is invested in bank on monthly basis for a fixed
rate of return. The deposit has a fixed tenure, at the end of which the principal
sum as well as the interest earned during that period is returned to the
investor.
o The period of deposit is minimum six months and maximum ten
years.
o The rate of interest is higher.
o The bank provides the loan facility. The loan can be given upto 75% of
the amount standing to the credit of the account holder.

NO FRILLS ACCOUNT: No frill account is a type of bank account, with low

/ Zero balance requirement with extra-features removed. In simple words it:
If a company makes its service/product cheaper by removing the extra
features that is no frill. RBI came up with this No-frill concept, because poor
people cannot open regular bank accounting having requirements like
Rs.5000/- minimum balance etc.

Q21. CASA Deposit?

Deposit in bank in current and Savings account.
Q22. What is Inflation?
Inflation is as an increase in the price of bunch of Goods and services that projects
the Indian economy. An increase in inflation figures occurs when there is an increase
in the average level of prices in Goods and services. Inflation happens when there are
fewer Goods and more buyers; this will result in increase in the price of Goods, since
there is more demand and less supply of the goods.
Q23. What is Deflation?
Deflation is the continuous decrease in prices of goods and services. Deflation occurs
when the inflation rate becomes negative (below zero) and stays there for a longer
period. A true economic recession can only be confirmed if GDP (Gross Domestic
Product)growth is negative for a period of two or more consecutive quarters suppose

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u r a manufacturer of pen u mark ur pen cost price is rs 10 if u get 12 on selling it is

called inflation if u get exactly ur cost price ie 10 then its deflation and if u get below
ur cost price ie rs 8 then its recession so inflation is a situation when demand exceeds
supply and hence producers charge more.
Q24. What is NOSTRO Account?
A Nostro account is maintained by an Indian Bank in the foreign countries.
Q25. What is VOSTRO Account?
A Vostro account is maintained by a foreign bank in India with their corresponding
bank
Q26. What is SDR (Special Drawing Rights)?
SDR are new form of International reserve assets, created by the International
Monetary Fund in 1967. The value of SDR is based on the portfolio of widely used
countries and they are maintained as accounting entries and not as hard currency or
physical assets like Gold.
Q27. What is Recession?
Recession is a situation when producers are not even able to get their cost price and
hence after some time forced to shut down their loss making company.
Q28. What is Double taxation avoidance agreement (DTAA)?
Double taxation avoidance agreement i.e. DTAA is concerned with international
taxation.
For e.g.--- a person from India wants to setup his industry in Mauritius so now he
have to pay tax as per Indian law and as per Mauritius law ..... so he is paying tax
twice ..... so to avoid this double taxation dtaa is signed by various countries......now
he dont have to pay tax to the tax twice for same income....
Q29. What is Disinvestment?
The Selling of the government stake in public sector undertakings.
Q30. What is Fiscal Deficit?
It is the difference between the governments total receipts (excluding borrowings)
and total expenditure. It represents the excess of expenditure over income.
Q31. What is Revenue deficit?
Revenue deficit defines that, where the net amount received (by taxes & other forms)
fails to meet the predicted net amount to be received by the government.
Q32. What is GDP?
The Gross Domestic Product or GDP is a measure of all of the services and goods
produced in a country over a specific period; classically a year.
Q33. What is GNP?
Gross National Product is measured as GDP plus income of residents from
investments made abroad minus income earned by foreigners in domestic market.
Q34. What is National Income?
National Income is the money value of all goods and services produced in a country
during the year. The national income of a country, or region, divided by its
population. Per capita income is often used to measure a country's standard of living.
Q35. What is SEZ?

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SEZ means Special Economic Zone is the one of the part of governments policies in
India. A special Economic zone is a geographical region that economic laws which are
more liberal than the usual economic laws in the country. The basic motto behind
this is to increase foreign investment, development of infrastructure, job
opportunities and increase the income level of the people.
Q36. Tell me about RBI and its Functions.
The RBI(Reserve Bank of India) is the central bank of India, was established on April
1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934. The
Reserve Bank of India was set up on the recommendations of the Hilton Young
Commission. The commission submitted its report in the year 1926, though the bank
was not set up for nine years.To regulate the issue of Bank Notes and keeping of
reserves with a view to securing monetary stability in India and generally to operate
the currency and credit system of the country to its advantage.
Functions : Banker to the Government: performs merchant banking function for
the central and the state governments; also acts as their banker. Banker to banks:
maintains banking accounts of all scheduled banks.
Q37. What is Monetary policy?
Monetary policy is the process by which the government, central bank, of a country
controls (i) the supply of money, (ii) availability of money, and (iii) cost of money or
rate of interest, in order to attain a set of objectives oriented towards the growth and
stability of the economy.
Q38. What is Fiscal Policy?
Fiscal policy is the use of government
spending and revenue collection to
influence the economy. These policies
affect tax rates, interest rates and
government spending, in an effort to
control the economy. Fiscal policy is
an additional method to determine
public
revenue
and
public
expenditure.
Q39. Right to information Act?
The Right to Information act is a law
enacted by the Parliament of India
giving citizens of India access to
records of the Central Government
and State governments. The Act
applies to all States and Union
Territories of India, except the State of
Jammu and Kashmir - which is
covered under a State-level law. This
law was passed by Parliament on 15
June 2005 and came fully into force
on 13 October 2005.
Q40. Credit Rating Agencies in
India?
The credit rating agencies in India mainly include ICRA and CRISIL. ICRA was
formerly referred to the Investment Information and Credit Rating Agency of India
Limited. Their main function is to grade the different sector and companies in terms
of performance and offer solutions for up gradation. The credit rating agencies in

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India mainly include ICRA and CRISIL (Credit Rating Information Services of India
Limited).
Q41. What are Non-performing assets (NPA)?
Non-performing assets, also called non-performing loans, are loans, made by a bank
or finance company, on which repayments or interest payments are not being made
on time. A debt obligation where the borrower has not paid any previously agreed
upon interest and principal repayments to the designated lender for an extended
period of time. The nonperforming asset is therefore not yielding any income to the
lender in the form of principal and interest payments.
Q42. How Bank gets Money?
Banks make money by lending your money out at interest and by charging you for
services provided. Banks keep on lending money.
The other big revenue items generated by banks are the fees they charge. Bank charge
for every service, whether it is for an electronic transaction, or permitting a transfer
through the Internet banking system.
When banks get profits they invest in other companies and in return they will get
money.
Q43. What is Base Rate (BR)?
Base Rate is the minimum interest rate of a bank below which it cannot lend to
public. The BPLR(Benchmark prime lending rate) was introduced in 2003. The BPLR
was converted into base rate on in july 2010. RBI made mandatory for all banks to
introduced w.e.f.1st July 2010. The minimum base rate is fixed by RBI.
Q44. BPS (Basis point) ?
BPS is an acronym for basic points aod is used to indicate changes in rate of interest
and other financial instrument. 1 BASIS POINT IS EQUAL TO 0.01%. So when we
say that repo rate has been increased by 25 bps, it means that the rate has been
increased by 0.25%
Important Abbreaviations :
BSBDA - Basic Savings Bank Deposit
Account
IBA - Indian Banks Association
FCNR(B) - Foreign Currency NonResident Bank
FSSAI - Food Safety & Standards
Authority of India
CIC
Central
Information
Commission
TARC - Tax Administration Reform
Commission
ITEs - Intra-Group Transactions and
Exposures
LCR - Liquidity Coverage Ratio
NSFR - Net Stable Funding Ratio
LRMT - Liquidity risk monitoring
tools
CBS - Core Banking Solution
CRAR - Capital to Risk-weighted
Assets Ratio
ECB
External
Commercial
Borrowings

SWIFT - Society for Worldwide

Interbank
Financial
Telecommunication
FSLRC - Financial Sector Legislative
Reforms Commission
MIBOR - Mumbai Inter-Bank Offer
Rate
LIBOR - London Inter-Bank Offer
Rate
LAF Liquidity Adjustment Facility
GIRO - Government Internal Revenue
Order
EEFC - Exchange Earner's Foreign
Currency
FRBMA - Fiscal Responsibility and
Budget Management Act
TIEA Tax Information exchange
Agreement
CAR Cash Adequacy Ratio
CCEA Cabinet Committee on
Economic Affairs

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DTAA Double Taxation Avoidance

Agreement
FEMA
Foreign
Exchange
Management Act
FII Foreign Institutional Investor.
FINO - Financial Inclusion Network
Operation
FIPB

Foreign
Investment
Promotion board
FSLRC Financial Sector Legislative
Reforms Commission
FTA - Free trade agreement
GAAR - General anti avoidance rule

GSLV - Geo-Synchronous Launch

Vehicle
MSF - Marginal Standing Facility
NBFC - Non Banking Finance
Companies
NEFT - National Electronic Funds
Transfer
PSLV Polar Satellite Launch vehicle
RTGS - Real Time Gross Settlement
SLR-Statutory Liquidity Ratio
TAPI - Turkmenistan-AfghanistanPakistan-India.
VVPAT - 'Voter Verifiable Paper
Audit
Trail'

Current Gk Topics : Important for Interview :

1) Bhartiya Mahila Bank:
The countrys first pan-India national womens bank launched in Mumbai on
19/11/2013.
Men can also open account in this bank.
Bank gives 4.5% on savings accounts up to Rs.1 lakh and 5% for above Rs1
lakh to encourage more savings.
The iconic Air India building at Nariman Point in Mumbai to open the first
branch of Bharatiya Mahila Bank.
The inaugural day is the birth anniversary of former Prime Minister
Indira Gandhi.
PM Manmohan Singh inaugurated bank first branch.
The Finance Minister had announced setting up of all-women bank with an
initial capital of Rs 1,000 crore. A core management team of seven members
has been formed by the government of India, headed by Usha
Ananthasubramanian, to set up the bank advised by SBI Capital Markets. The
application was made in June and the final license was obtained by 25
September.
One of its primary goals is the financial inclusion of Indias
unbanked, more specifically, rural women.
Usha Ananthasubramanian is the chairperson of the Bharatiya Mahila
Bank
Ananthasubramanian, 55, started her career in 1982 at Bank of Baroda as a
specialist officer in the planning stream. She holds a dual masters degree in
statistics from the Madras University and in ancient Indian culture from the
Mumbai University. Before joining the Bharatiya Mahila Bank, Usha
Ananthasubramanian was executive director of Punjab National Bank.
2) Main Points of Food Security Bill 2013
The food security bill approved is directed towards giving the right to food to
around 67 per cent of India's 120-crore population.
75 percent of rural and 50 percent of the urban population are
entitled for three years from enactment to 5 kg food grains per month.
While families in the poorest of the poor will continue to get 35 kg of grains
per month.
Rice will be made available at 3 Rs per Kg. Wheat will cost 2 rupees a kg and
cereal will be sold for 1 Rupees per kg.

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About 2.43 crore poorest of the poor families covered under the Antyodaya
Anna Yojana (AAY) scheme under PDS (Public Distribution System) would
continue to get 35 kg of food grains per family per month but with legal
entitlement.
In Union Budget 2013-14, Rs 10,000 crore set aside for incremental cost for
National Food Security Bill.
The scheme will be linked to the Aadhar scheme which provides every
citizen with a unique identification number that's linked to a database that
includes the biometrics of all card-holders.
C Rangarajan is the head of the committee for examination of the Food
Security Bill.
Chhattisgarh become first state to pass legislation on food security.

3) Elections in India

Few months ago state election held in five Indian states. These states are
Delhi, Rajasthan, Madhya Pradesh, Mizoram and Chhattisgarh. Delhi and
Mizoram polls held on 4th December, Madhya Pradesh on 25th November
and Rajasthan on 1st December.
For the first time, voters have an option of None of the above (NOTA)
using which Voters can disapprove all candidates in Voting System.

Who Wins and Chief Ministers :

Delhi: Aam Adami Party (28) + INC (8) = 36 Seats CM: Arvind Kejriwal.
Chhattisgarh: BJP (49 seats) CM: Raman Singh.
Rajasthan: BJP (163 seats) CM: Vasundhara Raje.
Mizoram: INC (34 seats) CM: Pu Lalthanhawla.
Madhya Pardesh: BJP (165 seats) CM: Shivraj Singh Chahuan.
4) Devyani Khobragade

Devyani Khobragade, Deputy Consul General for Political,

Economic, Commercial and Womens Affairs at the Consulate
General of India in New York at the Indian Consulate was arrested for
allegedly presenting fraudulent documents in support of a visa application for
an Indian national employed by her.
She (age- 39) was held on charges that she allegedly caused a materially false
and fraudulent document to be presented, and materially false and fraudulent
statements to be made, to the US Department of State in support of a visa
application for an the Indian national employed as a babysitter and
housekeeper at her home in New York.
Khobragade was charged with one count of visa fraud and one count of
making false statements, which carry maximum sentences of ten years and
five years in prison, respectively.
Khobragade was strip-searched, confined to a cell with drug
addicts and also subjected to DNA swabbing, sources confirmed to
IANS.
External affairs minister Salman Khurshid termed the treatment meted out to
Khobragade completely unacceptable.

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Devyani Khobragade was taken into custody last week on a street in New York
as she was dropping her daughter to school and handcuffed in public on visa
fraud charges before being released on a $250,000 (Rs 1.5 crore) bond after
pleading not guilty in court.
Khobragade, India's deputy consul general in New York, was accused by
Manhattan's Indian American US Attorney Preet Bharara of visa fraud and
exploiting her babysitter and housekeeper.

Actions on both Sides :

India has asked the US to return IDs issued to all its consular officers posted
in the country.
Government has asked the US to return the ID cards given to their consular
officers posted in India.
The government stopped all import clearances for the US embassy including
liquor even as it looked set to remove all traffic barricades near the embassy
on Nyaya Marg in Delhi. The picket, however, would stay.
The government also sought visa and other details of all teachers at US
schools and pay and bank accounts of Indians in these schools.
Devyani Khobragade was transferred to Indias Permanent Mission in United
Nations in New York on 18 December 2013.
5) Bitcoin :
Bitcoin is a virtual currency that can be generated through complex
computer software systems with solutions shared on a network, although the
process is complex and such 'mining' can be done only on very powerful
servers.
Hardly three years into existence, bitcoin has already become the world's
most expensive currency and its per unit value soared past USD 1,000 level or
about Rs 63,000 recently, although the prices have now slipped below Rs
50,000 level.
Bitcoin came into existence in 2009 and the current number of bitcoin
units generated so far stands at about 12 million. However, only a small
number of bitcoins are being used for real commercial and retail purposes and
a majority of transactions are happening for speculative investments.
RBI issued a warning that it will not regulate any Virtual Currency including
Bitcoin in India and warned people
who were dealing with the currency in
India of the risks involved, saying that
theyre exposing them to financial,
legal, operational and security related
risk.
6) VVIP Chopper Scam :
India
finally
cancelled
the
controversial Rs. 3,600-crore contract for 12
helicopters meant for VVIPs with UK-based
AgustaWestland amid allegations that deal
was riddled with kickbacks.
7) Who is Janet Yellen ?

Janet Yellen is the first woman to head

the Federal Reserve, central bank of

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US.
She succeeds Ben Bernanke, whose second four-year term as Fed chairman
expires on January 31.
Ms Yellen will become the first woman to run the Fed in its 100-year history
and just one of a handful of women heading central banks globally. She is
currently the Fed 's vice chair.

8) Important Points about Telangana Bill

The Union Cabinet gave the go-ahead for the creation of a 10-district
Telangana.
Telangana will comprise 10 districts and the rest of Andhra Pradesh
comprises 13 districts.
It has been carved out as the country's 29th state of India.
Hyderabad will remain the common capital for both the states for a period not
exceeding 10 years.
The Governor of Telangana will have a special responsibility for security of
life, liberty and property of all those who reside in the common capital area.
The Governor may be assisted by two advisors to be appointed by the
Government of India.
The government of India will extend financial and other support to the
creation of a new capital for the successor state of Andhra Pradesh to be
idendified by an expert committee.
Institutional mechanism with full involvement and participation of
government of India will be put in place to manage water resources and
projects on Krishna and Godavari rivers in an amicable and equitable
manner.
Polavaram will be declared as a national project and will be executed by the
union government following all environmental and R&R norms.
The government of India will assist the two states in augumenting their police
forces for maintaining public order.
Article 371 D will continue for the both states to ensure equitable
opportunities for education and public employment.
Existing admission quotas in higher technical and medical institutions will
continue for a period not exceeding five years.
9) RBI to withdraw all pre-2005 currency
notes to curb black money
The Reserve Bank decided to withdraw all
currency notes issued prior to 2005,
including Rs 500 and Rs 1,000
denominations, after March 31 in a move
apparently aimed at curbing black money
and fake currencies.
"After March 31, 2014, it (RBI) will
completely withdraw from circulation all
bank notes issued prior to 2005. From
April 1, 2014, the public will be required to
approach banks for exchanging these
notes," the RBI said in a statement.
10) RBI plans to use unclaimed deposits
for education, awareness

The Reserve Bank of India (RBI) proposed

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unclaimed bank deposits, estimated at about Rs 3,500 crore, be used for

education and awareness among depositors.
According to a draft on the Depositor Education and Awareness Fund
Scheme, deposits in the banking sector that havent been claimed for at least
10 years will be transferred towards the scheme.
The funds would be used to promote the interests of depositors.
For this, the committee may register/recognise various institutions,
organisations or associations engaged in activities related to depositor
awareness
and
education,
from
time
to
time.

11) RBIs Deputy Governor Anand Sinha retires

Reserve Bank of India has re-allocated his portfolios among the remaining three
Deputy Governors K.C. Chakrabarty, H.R. Khan and Urjit Patel. Sinha was incharge of eight departments, including Departments of Banking Operations and
Development, Risk Management, Information Technology and Expenditure and
Budgetary Control. Sinha was on an 11-month extension as he was dealing with the
process of issue of new bank licences in the private sector.
12) Bank of Maharashtra has launched a savings bank deposit scheme
Mahabank Royal Savings Account exclusively for high net worth Individuals
having a minimum monthly average balance (MAB) of Rs 1 lakh in their account. The
slew of benefits offered to the accountholder under the product includes assistance of
a relationship manager, free accident death insurance cover (Rs 50 lakh personal air
accident death insurance and Rs 10 lakh personal accidental death insurance), higher
transaction limit on ATM-cum-debit card on merchant point of sale terminals, and
free national electronic funds transfer/real time gross system transactions through
Internet banking.
13) Bharatiya Mahila Bank (BMB) and SBI Cards have joined hands for
roll-out of credit cards to customers of Indias first women-focused
commercial bank. This will be the first instance of a public sector bank promoting
a white-label credit card issued by SBI Cards. Under this arrangement, SBI Cards will
issue and process the credit cards as white-label cards, allowing BMB to brand the
cards as their own without having to invest in infrastructure. A white-label card does
not carry the brand of the issuer (SBI Cards) on its face. It will only in this case carry
the brand of BMB.
14) Legendary Bengali actor Suchitra Sen who was undergoing treatment
at a private health facility in the city died in Kolkata. She was 82 and is
survived by daughter Moon Moon Sen and grand daughters Raima and Riya Sen.
Chief Minister Mamata Banerjee who was in regular touch with doctors visited the
hospital after hearing about her death.
15) Sunanda Pushkar, the wife of the Union Minister Sashi Tharoor on 17
January 2014 was found dead in a luxury Leela Palace hotel room in
Delhi. Her body was found by Tharoor after his return from the AICC meet.
16) Aam Aadmi Party Government withdrew the approval given by the
previous Sheila Dikshit dispensation to FDI in multi-brand retail in
Delhi,
17) POSCO, the South Korean steel maker giant has received
environment clearance from the Union Ministry of Environment and
Forest (MoEF) for a steel plant of Rs 52000 crore in Odisha with an

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annual production capacity of 12 million tones. The project was in the

pipeline for clearance for past eight years and this approval will pave way for the
largest FDI investment ever in the country.
18) Retirement fund body EPFO decided to increase the rate of interest
on Provident Fund deposits to 8.75 percent for 2013-14, a move that will
benefit about 5 crore subscribers. According to sources, the body had surplus
funds, which enabled the interest rate to be increased from 8.5 percent in the
previous financial year (2012-13). Payment of interest at the rate of 8.5 percent to
subscribers would have required Rs 20,740 crore and left a surplus of Rs 56.96 crore,
according to earlier projections.

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