Frequently asked interview Questions in Banking – 4

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Frequently Asked Question in IBPS RRB Interview

Dear Readers Now as the interview dates of RRB All Grades are out we bring to you very common interview questions with out set No 4 on the given subject. We will be updating material and Videos on a regular basis to help maximum number of candidates to cherish their dreams.

Usually the time interval for interview for RRb exams lies between 7-9 minutes and more depending on the interest you are generating.

Questions

1: What is Capital Adequacy Ratio?
Answer: Sir Capital Adequacy Ratio is the ratio of bank capital against the risk. It can be understood as the capacity of a bank to absorb loss, due to bad assets.
2: What can you understand by liquidity in the market.
Answer: Sir  Liquidity in the market refers to the amount of money available in the market for purchase of Goods and services. Liquidity in the market is subject to various factor one of which is monitory policy. If there is high inflation RBI tends to increase rates and vice-versa to enhance growth RBI lower down the rates.
3: Explain Monitory policy?

Answer: Sir Monitory policy explains the tools available with RBI to keep a balance between growth and inflation. Monitory policy in India has 3 major components.

CRR: 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. The RBI uses the CRR to drain out excessive money from the system.

SLR: Statutory liquidity ratio (SLR) is the Indian government term for reserve requirement that the commercial banks in India require to maintain in the form of gold, government approved securities before providing credit to the customers

Repo Rate: This is the rate at which banks can ask money from RBI in exchange of government Securities

4: What do you know about Mudra Loans?
Sir, Mudra Loans was launched by the government to support small traders, businessman and new entrepreneurs. Banks can finance an amount upto 10Lacs under this scheme which will be later refinanced by the government. This scheme was launched with 3 variants
Sishu :: Upto Rs 50000/- 
Kishore:: Rs50001/- to Rs500000/-
 Tarun :: Rs500001/- to Rs1000000/-

This scheme was launched to promote entrepreneurship and enable easy advance to small businessman. Banks have introduced Mudra Cards in which the customer can transact freely upto the loan amount sanctioned.

5: Loan Waiver :: A boon or a mistake
Answer: Sir Loan Waivers is a mistake, according to my view. Loan Waiver schemes make customers a willful defaulter. If loan waiver schemes come up from time to time the borrowers will wait for such schemes to come and will not repay bank loans. This results in increased NPA and increased Losses.
6: You Know there is a lot of pressure in Banking Industry. You might be joining banking. How do you plan to cope up with challenges.
Answer: Yes Sir, i have heard of many challenges in banking. Sir my father has taught me the skills of meditation, yoga by which i would like to mitigate the pressure on me, relax and work with a zeal. 

Sehpaathi has launched a free Interview Guidance sessions with our Panel. We start it off from today between 7pm to 8pm. All candidates interested can ask their questions in the comment box given below. We are also trying to arrange hangout session with one of our Banking friend. Will update you once it happens

 

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