Frequently Asked Banking Interview Questions – 10
Dear Readers Now as the interview dates of RRB All Grades and IBPS PO are scheduled we bring to you very common banking interview questions with out set No 10 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.
try Usually the time interval for interview for RRb exams and IBPS PO lies between 7-9 minutes and more depending on the interest you are generating.
- Why Deposit is a liability where as advances are an asset?
Answer :: Sir, Deposit is a liability because we have to pay interest on deposits we have whereas on advances we receive interest from our borrower. Sir The difference between interest earned on advances to interest given on deposits is known as net interest margin.
- Why NPA’s hurt banking profits?
Answer:: Sir, NPA’s hurt banking in 3 ways
1: Banks do not earn any interest on their advances
2: Banks have to make provisioning on NPA from their profits, it hurt their bottom line.
3: More NPA means bad asset quality of a bank and it deteriorates bank’s position in market.
- What are basel Norms?
Answer:: Sir, Basel is a city in Switzerland which is also the headquarters of Bureau of International Settlement (BIS). BIS fosters co-operation among central banks with a common goal of financial stability and common standards of banking regulations. Basel norms have introduced norms in 3 stages
Basel 1 – Covered only Credit Risk
Basel 1.1 Covered credit risk and Market Risk
Basel 2 Covered Credit Risk, Market Risk,Operational Risk,
Basel 3 Covered Credit Risk, Market Risk,Operational Risk,liquidity Risk
Current Basel 3 norms are being implemented by RBI From Time to time
- What are basel 3 Norms?
Answer:: These accords deal with risk management aspects for the banking sector. In a nut shell we can say that Basel iii is the global regulatory standard on bank capital adequacy, stress testing and market liquidity risk. (Basel I and Basel II are the earlier versions of the same, and were less stringent).
- To what type of customer can we give loans below base rate.
Answer:: Banks don’t give any loans below base rate except to their employees. Banks offer loans to customers according to their corresponding rates but in cases like KCC, and government sponsored scheme loans government subsidize customers and pay interest subvention.
- What do you know about gold monetisation scheme?
Answer:: Sir, gold monetisation is the latest gold scheme launched by the government. In this RBI will fix price of 1gm of gold every 15 days and centers for gold checking will be made in every district. Customer who intend to melt his gold ornaments can go to the the gold checking center where the gold will be melted and exact weight of the gold will be told. If then the customer want to invest his gold in the scheme he will be referred to the bank.
Banks will open a fixed deposit for the actual amount of gold as per RBI norms and will give interest on it.
In this the government has introduced short term. long term investment plans.