Bank PO Practice Interview Questions

  1. Who is Governor of RBI? Ans. Dr. Duvvuri Subbarao (2013)

  2. Who is deputy chairman of Planning Commission? Ans. Montek Singh Ahluwalia (2013)

  3. What is Bank? Ans. A financial establishment that invests money deposited by customers, pays it out when required, makes loans at interest, and exchanges

  4. What is Bank Rate? Ans. The rate of discount set by a central bank.

  5. What is RRB? Ans. REGIONAL RURAL BANKS

  6. Full form of ATM. Ans. Automated Teller Machine

  7. What are differences in Private Bank and Public Bank? Ans. Public sector Banks are also called Nationalised banks. These banks are owned by the Government of India. Private sector banks are Banks which come under Negiotiable Instruments Act but under private Management. Public sector bank has govt. Share holding. Private sector banks have no govt. Share holding only private.

  8. What is CRR? Ans. Cash reserve Ratio (CRR) is the amount of funds that the banks have to keep with RBI.

  9. What is SLR? Ans. SLR (Statutory Liquidity Ratio) is the amount a commercial bank needs to maintain in the form of cash, or gold or govt. Approved securities (Bonds) before providing credit to its customers.

  10. Full form of NABARD? Ans. National Bank for Agriculture and rural development

  11. What is FDI? Ans. Foreign direct investment (FDI) is a direct investment into production or business in a country by a company in another country.

  12. What is a Repo Rate? Ans. Repo rate is the rate at which our banks borrow rupees from RBI. Whenever the banks have any shortage of funds they can borrow it from RBI.

  13. What is Reverse Repo Rate? Ans. This is exact opposite of Repo rate. Reverse Repo rate is the rate at which Reserve Bank of India (RBI) borrows money from banks.

  14. Who invented ATM? Ans. John Shepherd-Barron and Donald Wetzel

  15. What is foreign banking system? Ans. A foreign bank is a bank that was established in a different country and is also serving customers of another country.

  16. What is Online Banking? Ans. Online banking (or Internet banking) allows customers to conduct financial transactions on a secure website.

  17. Full form of ntfs and rtgs? Ans. RTGS: Real Time Gross Settlement NEFT: National Electronic Funds Transfer (Any amt)

  18. What is inflation? Ans. Inflation is as an increase in the price of Goods. Inflation happens when there are fewer Goods and more buyers.

  19. What is Deflation? Ans. Deflation is the continuous decrease in prices of goods and services. Deflation occurs when the inflation rate becomes negative.

  20. What is Cheque? Ans. A written order directing a bank to pay money.

  21. Types of Cheque. Ans. Bearer Cheque; Order Cheque; Uncrossed/Open Cheque; Crossed Cheque; Anti-Dated Cheque; Post-Dated Cheque; Stale Cheque

  22. What is CBS? Ans. Core Banking system is a facility provided by banks in which a person, having an account in one branch, can operate his account, in another branch.

  23. What is FII? Ans. FII (Foreign Institutional Investor) used to denote an investor, mostly in the form of an institution established outside India

  24. When were the banks nationalised? Ans. The nationalisation of banks in India took place in 1969 by Mrs. Indira Gandhi the then prime minister. It nationalised 14 banks then. These banks were mostly owned by businessmen and even managed by them. Central Bank of India Bank of Maharashtra Dena Bank Punjab National Bank Syndicate Bank Canara Bank Indian Bank Indian Overseas Bank Bank of Baroda Union Bank Allahabad Bank United Bank of India UCO Bank Bank of India

  25. What was the name of first bank established in India? Ans. Bank of hindustan

  26. What is Deposit Rate? Ans. Interest Rates paid by a depository institution on the cash on deposit.

  27. What is Trial balance? Ans. A Trial Balance is a list of all the General ledger accounts (both revenue and capital) contained in the ledger of a business.

  28. What is the monetary Policy? Ans. A Monetary policy is the process by which the government, central bank, of a country controls the supply of money, availability of money, and cost of money or rate of interest, in order to attain a set of objectives oriented towards the growth and stability of the economy.

  29. What is Current Account? Ans. Current bank account is opened by businessmen who have a number of regular transactions with the bank, both deposits and withdrawals. It is also known as Demand Deposit.

  30. What is Current Account? Ans. The ‘saving account’ is generally opened in bank by salaried persons or by the persons who have a fixed regular income. This facility is also given to students, senior citizens, pensioners, and so on:

  31. What is an NRI A/C? Ans. Account of NRI's

  32. What is PLR and BPLR? Ans. Prime Lending Rate and Benchmark Prime Lending Rate

  33. What is Loan? Ans. Sum of money that is expected to be paid back with interest.

  34. What is NPA? Ans. A classification used by financial institutions that refer to loans that are in jeopardy of default. Once the borrower has failed to make interest or principal payments for 90 days the loan is considered to be a non-performing asset.

  35. What is the difference between Credit Card and Debit Card? Ans. Debit Card lets you spend your own money without carrying cash. That's the main difference between a Debit Card and a Credit Card

  36. What is loan syndication process? Ans. Loan syndication is the process of involving several different lenders in providing various portions of a loan. Mainly used in extremely large loan situations, syndication allows any one lender to provide a large loan while maintaining a more prudent and manageable credit exposure because the lender isn't the only creditor.

  37. What is the difference in Current account and Savings accounts? Ans. A current account is for business. Only people who own a business can open this a/c with the bank. A savings a/c is for people who want to keep the money in the bank. This a/c pays a very small rate of interest to the a/c holder.

  38. How many nationalised banks are at present? Ans. There are 26 Nationalized Banks in the country at present

  39. Difference between Check and Draft? Ans. A cheque is an unconditional order directing the banker to pay a certain sum of money only to or to the order of a certain person. A draft is 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.

  40. What is Balance of Payment? Ans. The Balance of Payments is a statistical table that records transactions between residents and non-residents, irrespective of the transaction currency, during a specified time period.

  41. Define deprication? Ans. A method of allocating the cost of a tangible asset over its useful life. Businesses depreciate long-term assets for both tax and accounting purposes.

  42. What is KYC? Ans. KYC is an acronym for “Know your Customer” KYC has two components-Identity and Address.

  43. What is Cross-Check? Ans. Crossing of cheque means drawing two parallel lines on the face of the cheque with or without additional words. A crossed cheque cannot be encashed at the cash counter of a bank but it can only be credited to the payee's account.

  44. What is slate cheque? Ans. If a cheque is presented for payment after six months from the date of the cheque it is called stale cheque.

  45. Have you heard about basel 2? Ans. Basel II is an international business standard that requires financial institutions to maintain enough cash reserves to cover risks incurred by operations.

  46. What is GDP? Ans. 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.

  47. What is GNP? Ans. Gross National Product is measured as GDP plus income of residents from investments made abroad minus income earned by foreigners in domestic market.

  48. What is Fiscal Deficit? Ans. It is the difference between the government's total receipts (excluding borrowings) and total expenditure.

  49. What is SDR? Ans. The SDR (Special Drawing Rights) is an artificial currency created by the IMF in 1969. SDRs are allocated to member countries and can be fully converted into international currencies so they serve as a supplement to the official foreign reserves of member countries. Its value is based on a basket of key international currencies (U. S. Dollar, euro, yen and pound sterling).

  50. What is SEZ?

Ans. SEZ means Special Economic Zone is the one of the part of government's 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.