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BANKING TERMINOLOGY
2 WHAT IS A BANK ??
BANK IS A FINANCIAL INSTITUTION WHICH ACCEPTS DEPOSITS AND PROVIDE LOANS
WITH THE FACILITY OF CHEQUES,DEMAND DRAFT,ETC. NOW BROADLY BANKS ARE
OF TWO TYPES:
1--PUBLIC SECTOR BANK: BANKS IN WHICH GOVERNMENT HOLDING IS ABOVE
51% IS CALLED PUBLIC SECTOR BANK.
2--PRIVATE SECTOR BANK: IN WHICH GOVERNMENT HOLDING IS UPTO 49%.

3 RESERVE BANK OF INDIA

1--RBI IS THE CENTRAL BANK OF INDIA
2--ESTABLISHMENT---1 APRIL 1935
3--HEAD OFFICE---MUMBAI
4--NATIONALISED IN---1949
5--CURRENT GOVERNOR--DUVVURI SUBBARAO
6--WORKS ON MINIMUM RESERVE SYSTEM---MINIMUM RESERVE OF RS 200 CRORE
WHICH INCLUDES==RS 115 CRORE GOLD RESERVE AND RS 85 CRORE
GOVERNMENT SECURITIES

4 FUNCTIONS OF RBI
The functions of the Reserve Bank today can be categorised as follows:
1- Monetary policy
2- Regulation and supervision of the banking and non-banking financial

institutions, including credit information companies

3- Regulation of money, forex and government securities markets as also
certain financial derivatives
4- Debt and cash management for Central and State Governments
5- Management of foreign exchange reserves
6- Foreign exchange managementcurrent and capital account management.
7- Banker to banks
8- Banker to the Central and State Governments
9- Oversight of the payment and settlement systems
10- Currency management
11- Developmental role
12- Research and statistics

5 TYPES OF CAPITAL
The following different terms are used to denote different aspects of share capital:1.Nominal, authorised or registered capital ---means the sum mentioned in the
capital clause of Memorandum of Association. It is the maximum amount which the
company raise by issuing the shares and on which the registration fee is paid. This
limit is cannot be exceeded unless the Memorandum of Association is altered.
2.Issued capital ---means that part of the authorised capital which has been
offered for subscription to members and includes shares alloted to members for
consideration in kind also.
3.Subscribed capital ----means that part of the issued capital at nominal or face
value which has been subscribed or taken up by purchaser of shares in the company
and which has been alloted.
4.Called-up capital---- means the total amount of called up capital on the shares
issued and subscribed by the shareholders on capital account. I.e if the face value
of a share is Rs. 10/- but the company requires only Rs. 2/- at present, it may call
only Rs. 2/- now and the balance Rs.8/- at a later date. Rs. 2/- is the called up share
capital and Rs. 8/- is the uncalled share capital.
5.Paid-up capital---- means the total amount of called up share capital which is
actually paid to the company by the members.
In India, there is the concept of par value of shares. Par value of shares means the
face value of the shares. A share under the Companies act, can either of Rs10 or
Rs100 or any other value which may be the fixed by the Memorandum of
Association of the company. When the shares are issued at the price which is higher
than the par value say, for example Par value is Rs10 and it is issued at Rs15 then
Rs5 is the premium amount i.e, Rs10 is the par value of the shares and Rs5 is the
premium. Similarily when a share is issued at an amount lower than the par value,
say Rs8, in that case Rs2 is discount on shares and Rs10 will be par value.

8 WHAT IS A CHEQUE AND ITS TYPES

Cheque is an instrument in writing containing an unconditional order, addressed to
a banker, sign by the person who has deposited money with the banker, requiring
him to pay on demand a certain sum of money only to or to the order of certain
person or to the bearer of instrument
TYPES OF CHEQUES---1. Bearer Cheque: When the words "or bearer" appearing on the face of the
cheque are not cancelled, the cheque is called a 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 cheques
are lost, the finder of the cheque can collect payment from the bank.
2. Order Cheque: When the word "bearer" appearing on the face of a cheque is
cancelled and when in its place the word "or order" is written on the face of the
cheque, the cheque is called an order cheque. Such a cheque is payable to the
person specified therein as the payee, or to any one else to whom it is endorsed
(transferred).
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 be
obtained at the counter of the bank. An open cheque may be a bearer cheque or an
order one.
4. 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 encashed at the cash counter of a
bank but it can only be credited to the payee's account.
5. 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
upto six months from the date of the cheque.
6. 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 post dated cheque cannot be honoured
earlier than the date on the cheque.
7. 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 honoured by the
bank.

What is interest?

Interest is money that you earn on your savings and is generally paid into your savings account
every month. Interest is also money that you will pay on any debts you have that might, be they
on credit cards, loans or an overdraft.

What is inflation?

Inflation is the amount by which the cost of living increases each year. Generally, inflation is
about 2 to 3 percent.
What is a loan?

If you find that you need to borrow some money from the bank, you can apply for a loan over a
set period of time. A loan is given on the assumption that you'll pay that money back in regular
instalments, plus interest.
What is credit?

Credit is any money that you borrow. You might borrow that money on a credit card, an
overdraft, a personal loan or a bigger loan, like a mortgage.
What is debt?

Debt is money that you owe to somebody else. That debt might be to the bank, to another
financial institution or even to another person.
What is an overdraft?

An overdraft is a credit facility that's attached to your current account. You'll make an agreement
with the bank that you can borrow, for instance, an extra 5 as an overdraft. However, you will
be expected to pay that money back with interest. Theoretically, there is no limit to how big your
personal overdraft can be as long as you meet that bank's lending criteria.
What is a standing order?

A standing order is a regular payment that comes out of your current account to another bank
account. A stranding order might be set up to pay, for instance, your rent or your mortgage. You
might have a standing order to put money into your savings account each month.
What is Direct Debit?

Direct debit is an agreement that you have with a utility provider or someone that you pay a bill
to each month. The direct debit agreement means that they can take the money for that bill
directly out of your bank account when it's due.
What is cashback on a credit card?

Cashback on a credit card is a feature that is sometimes incorporated into a credit card deal
where you will earn, for instance, 2% of the money back that you spend. If you spend 50 on
your credit card, you'll get 2% of that back in cashback.
What is cashback at a till?

Cashback is when you use your debit card to make a purchase at the till. If you ask for 20
cashback, they will give you 20, and then take that money straight from your current account.

Anytime Banking : With introduction of ATMs, Tele-Banking and internet banking, customers can
conduct their business anytime of the day and night. The 'Banking Hours' is not a constraint for
transacting banking business.

Anywhere Banking : Refers to banking not only by ATMs, Tele-Banking and internet banking, but also
to core banking solutions brought in by banks where customer can deposit his money, cheques and also
withdraw money from any branch connected with the system. All major banks in India have brought in
core banking in their operations to make banking truly anywhere banking.

ATM : ATMs are Automatic Teller Machines, which do the job of a teller in a bank through Computer
Network. ATMs are located on the branch premises or off branch premises. ATMs are useful to dispense
cash, receive cash, accept cheques, give balances in the accounts and also give mini-statements to the
customers.

Bank Ombudsman : Bank Ombudsman is the authority to look into complaints against Banks in the
main areas of collection of cheque / bills, issue of demand drafts, non-adherence to prescribed hours of
working, failure to honour guarantee / letter of credit commitments, operations in deposit accounts and
also in the areas of loans and advances where banks flout directions / instructions of RBI. This Scheme
was announced in 1995 and is functioning with new guidelines from 2007. This scheme covers all
scheduled banks, the RRBs and co-operative banks.

Bancassurance : Bancassurance refers to the distribution of insurance products and the insurance
policies of insurance companies which may be life policies or non-life policies like home insurance - car
insurance, medi-policies and others, by banks as corporate agents through their branches located in
different parts of the country by charging a fee.

Banker's Lien : Bankers lien is a special right of lien exercised by the bankers, who can retain goods
bailed to them as a security for general balance of account. Bankers can have this right in the absence of
a contract to the contrary.

Banking : Accepting for the purpose of lending or investment of deposits of money from Public,
Repayable on demand or otherwise and withdrawable by cheques, drafts, order, etc.

Basel-II : The Committee on Banking Regulations and Supervisory Practices, popularity known as Basel
Committee, submitted its revised version of norms in June, 2004. Under the revised accord the capital
requirement is to be calculated for credit, market and operational risks. The minimum requirement
continues to be 8% of capital fund (Tier I & II Capital) Tier II shall continue to be not more than 100% of
Tier I Capital.

Brick & Mortar Banking : Brick and Mortar Banking refers to traditional system of banking done only
in a fixed branch premises made of brick and mortar. Now there are banking channels like ATM, Internet
Banking,tele banking etc.

Business of Banking : Accepting deposits, borrowing money, lending money, investing, dealing in
bills, dealing in Foreign Exchange, Hiring Lockers, Opening Safe Custody Accounts, Issuing Letters of
Credit, Traveller's Cheques, doing Mutual Fund business, Insurance Business, acting as Trustee or doing
any other business which Central Government may notify in the official Gazette.

Bouncing of a cheque : Where an account does not have sufficient balance to honour the cheque
issued by the customer , the cheque is returned by the bank with the reason "funds insufficient" or
"Exceeds arrangement".This is known as 'Bouncing of a cheque' .

Certificate of Deposit :. Certificate of Deposits are negotiable receipts in bearer form which can be
freely traded among investors. This is also a money market instrument,issued for a period ranging from 7
days to f one year .The minimum deposit amount is Rs. 1 lakh and they are transferable by endorsement
and delivery.

Cheque : Cheque is a Bill of Exchange drawn on a specified banker ordering the banker to pay a certain
sum of money to the drawer of cheque or another person. Money is generally withdrawn by clients by
cheques. Cheque is always payable on demand.

Cheque Truncation : Cheque truncation, truncates or stops the flow of cheques through the banking
system. Generally truncation takes place at the collecting branch, which sends the electronic image of the
cheques to the paying branch through the clearing house and stores the paper cheques with it.

Collecting Banker : Also called receiving banker, who collects on instruments like a cheque, draft or
bill of exchange, lodged with himself for the credit of his customer's account.

Consumer Protection Act : It is implemented from 1987 to enforce consumer rights through a simple
legal procedure. Banks also are covered under the Act. A consumer can file complaint for deficiency of
service with Consumer District Forum for amounts upto Rs.20 Lacs in District Court, and for amounts
above Rs.20 Lacs to Rs.1 Crore in State Commission and for amounts above Rs.1 Crore in National
Commission.

Co-operative Bank : An association of persons who collectively own and operate a bank for the benefit
of consumers / customers, like Saraswat Co-operative Bank or Abhyudaya Co-operative Bank and other
such banks.

Co-operative Society : When an association of persons collectively own and operate a unit for the
benefit of those using its services like Apna Bazar Co-operative Society or Sahakar Bhandar or a Cooperative Housing Society.

Core Banking Solutions (CBS) : Core Banking Solutions is a buzz word in Indian banking at present,
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.

Creditworthiness : It is the capacity of a borrower to repay the loan / advance in time alongwith
interest as per agreed terms.

Crossing of Cheques : Crossing refers to drawing two parallel lines across the face of the cheque.A
crossed cheque cannot be paid in cash across the counter, and is to be paid through a bank either by
transfer, collection or clearing.A general crossing means that cheque can be paid through any bank and a
special crossing, where the name of a bank is indicated on the cheque, can be paid only through the
named bank.

Current Account : Current account with a bank can be opened generally for business purpose. There
are no restrictions on withdrawals in this type of account. No interest is paid in this type of account.

Customer : A person who maintains any type of account with a bank is a bank customer. Consumer
Protection Act has a wider definition for consumer as the one who purchases any service for a fee like
purchasing a demand draft or a pay order. The term customer is defined differently by Laws, softwares
and countries.

Debit Card : A plastic card issued by banks to customers to withdraw money electronically from their
accounts. When you purchase things on the basis of Debit Card the amount due is debited immediately to
the account . Many banks issue Debit-Cum-ATM Cards.

Debtor : A person who takes some money on loan from another person.
Demand Deposits : Deposits which are withdrawn on demand by customers.E.g. savings bank and
current account deposits.

Demat Account : Demat Account concept has revolutionized the capital market of India. When a
depository company takes paper shares from an investor and converts them in electronic form through
the concerned company, it is called Dematerialization of Shares. These converted Share Certificates in
Electronic form are kept in a Demat Account by the Depository Company, like a bank keeps money in a
deposit account. Investor can withdraw the shares or purchase more shares through this demat Account.

Dishonour of Cheque : Non-payment of a cheque by the paying banker with a return memo giving
reasons for the non-payment.

Debit Card : A plastic card issued by banks to customers to withdraw money electronically from their
accounts. When you purchase things on the basis of Debit Card the amount due is debited immediately to
the account . Many banks issue Debit-Cum-ATM Cards.

Debtor : A person who takes some money on loan from another person.
Demand Deposits : Deposits which are withdrawn on demand by customers.E.g. savings bank and
current account deposits.

Demat Account : Demat Account concept has revolutionized the capital market of India. When a
depository company takes paper shares from an investor and converts them in electronic form through
the concerned company, it is called Dematerialization of Shares. These converted Share Certificates in
Electronic form are kept in a Demat Account by the Depository Company, like a bank keeps money in a
deposit account. Investor can withdraw the shares or purchase more shares through this demat Account.

Dishonour of Cheque : Non-payment of a cheque by the paying banker with a return memo giving
reasons for the non-payment.

E-Banking : E-Banking or electronic banking is a form of banking where funds are transferred through

exchange of electronic signals between banks and financial institution and customers ATMs, Credit
Cards, Debit Cards, International Cards, Internet Banking and new fund transfer devices like SWIFT,
RTGS belong to this category.

EFT - (Electronic Fund Transfer) : EFT is a device to facilitate automatic transmission and
processing of messages as well as funds from one bank branch to another bank branch and even from
one branch of a bank to a branch of another bank. EFT allows transfer of funds electronically with debit
and credit to relative accounts.

Either or Survivor : Refers to operation of the account opened in two names with a bank. It means that
any one of the account holders have powers to withdraw money from the account, issue cheques, give
stop payment instructions etc. In the event of death of one of the account holder, the surviving account
holder gets all the powers of operation.

Electronic Commerce (E-Commerce): E-Commerce is the paperless commerce where the

exchange of business takes place by Electronic means.

Endorsement : When a Negotiable Instrument contains, on the back of the instrument an endorsement,
signed by the holder or payee of an order instrument, transferring the title to the other person, it is called
endorsement.

Endorsement in Blank : Where the name of the endorsee or transferee is not mentioned on the
instrument.

Endorsement in Full : Where the name of the endorsee or transferee appears on the instrument while
making endorsement.

Execution of Documents : Execution of documents is done by putting signature of the person, or

affixing his thumb impression or putting signature with stamp or affixing common seal of the company on
the documents with or without signatures of directors as per articles of association of the company.

Factoring : Business of buying trade debts at a discount and making a profit when debt is realized and
also taking over collection of trade debts at agreed prices.

Foreign Banks : Banks incorporated outside India but operating in India and regulated by the Reserve
Bank of India (RBI),. e..g., Barclays Bank, HSBC, Citibank, Standard Chartered Bank, etc.

Forfaiting : In International Trade when an exporter finds it difficult to realize money from the importer,
he sells the right to receive money at a discount to a forfaiter, who undertakes inherent political and
commercial risks to finance the exporter, of course with assumption of a profit in the venture.

Forgery : when a material alteration is made on a document or a Negotiable Instrument like a cheque, to
change the mandate of the drawer, with intention to defraud.

Garnishee Order : When a Court directs a bank to attach the funds to the credit of customer's account
under provisions of Section 60 of the Code of Civil Procedure, 1908.

General Lien : A right of the creditors to retain possession of all goods given in security to him by the
debtor for any outstanding debt.

Guarantee : A contract between guarantor and beneficiary to ensure performance of a promise or

discharge the liability of a third person. If promise is broken or not performed, the guarantor pays
contracted amount to the beneficiary.

Holder : Holder means any person entitled in his own name to the possession of the cheque, bill of
exchange or promissory note and who is entitled to receive or recover the amount due on it from the
parties. For example, if I give a cheque to my friend to withdraw money from my bank,he becomes holder
of that cheque. Even if he loses the cheque, he continues to be holder. Finder cannot become the holder.

Holder in due course : A person who receives a Negotiable Instrument for value, before it was due
and in good faith, without notice of any defect in it, he is called holder in due course as per Negotiable
Instrument Act. In the earlier example if my friend lends some money to me on the basis of the cheque,
which I have given to him for encashment, he becomes holder-in-due course.

Hypothecation : Charge against property for an amount of debt where neither ownership nor
possession is passed to the creditor. In pledge, possession of property is passed on to the lender but in
hypothecation, the property remains with the borrower in trust for the lender.

Identification : When a person provides a document to a bank or is being identified by a person, who is
known to the bank, it is called identification. Banks ask for identification before paying an order cheque or
a demand draft across the counter.

Indemnifier : When a person indemnifies or guarantees to make good any loss caused to the lender
from his actions or others' actions.

Indemnity : Indemnity is a bond where the indemnifier undertakes to reimburse the beneficiary from any
loss arising due to his actions or third party actions.

Insolvent : Insolvent is a person who is unable to pay his debts as they mature, as his liabilities are
more than the assets . Civil Courts declare such persons insolvent. Banks do not open accounts of
insolvent persons as they cannot enter into contract as per law.

Interest Warrant : When cheque is given by a company or an organization in payment of interest on

deposit , it is called interest warrant. Interest warrant has all the characteristics of a cheque.

International Banking : involves more than two nations or countries. If an Indian Bank has branches in
different countries like State Bank of India, it is said to do International Banking.

Introduction : Banks are careful in opening any account for a customer as the prospective customer
has to be introduced by an existing account holder or a staff member or by any other person known to the
bank for opening of account. If bank does not take introduction, it will amount to negligence and will not
get protection under law.

JHF Account : Joint Hindu Family Account is account of a firm whose business is carried out by Karta
of the Joint family, acting for all the family members.. The family members have common ancestor and
generally maintain a common residence and are subject to common social, economic and religious
regulations.

Joint Account : When two or more individuals jointly open an account with a bank.
Karta : Manager of a Hindu Undivided Family (HUF) who handles the family business. He is usually the
eldest male member of the undivided family.

Kiosk Banking : Doing banking from a cubicle from which food, newspapers, tickets etc. are also sold.
KYC Norms : Know your customer norms are imposed by R.B.I. on banks and other financial
institutions to ensure that they know their customers and to ensure that customers deal only in legitimate
banking operations and not in money laundering or frauds.

Law of Limitation : Limitation Act of 1963 fixes the limitation period of debts and obligations including
banks loans and advances. If the period fixed for particular debt or loan expires, one can not file a suit for
is recovery, but the fact of the debt or loan is not denied. It is said that law of limitation bars the remedy
but does not extinguish the right.

Lease Financing : Financing for the business of renting houses or lands for a specified period of time
and also hiring out of an asset for the duration of its economic life. Leasing of a car or heavy machinery
for a specific period at specific price is an example.

Letter of Credit : A document issued by importers bank to its branch or agent abroad authorizing the
payment of a specified sum to a person named in Letter of Credit (usually exporter from abroad). Letters
of Credit are covered by rules framed under Uniform Customs and Practices of Documentary Credits
framed by International Chamber of Commerce in Paris.

Limited Companies Accounts : Accounts of companies incorporated under the Companies Act,
1956 . A company may be private or public. Liability of the shareholders of a company is generally limited
to the face value of shares held by them.

Mandate : Written authority issued by a customer to another person to act on his behalf, to sign cheques
or to operate a bank account.

Material Alteration : Alteration in an instrument so as to alter the character of an instrument for

example when date, amount, name of the payee are altered or making a cheque payable to bearer from
an order one or opening the crossing on a cheque.

Merchant Banking : When a bank provides to a customer various types of financial services like
accepting bills arising out of trade, arranging and providing underwriting, new issues, providing advice,
information or assistance on starting new business, acquisitions, mergers and foreign exchange.

Micro Finance: Micro Finance aims at alleviation of poverty and empowerment of weaker sections in
India. In micro finance, very small amounts are given as credit to poor in rural, semi-urban and urban
areas to enable them to raise their income levels and improve living standards.

Minor Accounts : A minor is a person who has not attained legal age of 18 years. As per Contract Act a
minor cannot enter into a contract but as per Negotiable Instrument Act, a minor can draw, negotiate,
endorse, receive payment on a Negotiable Instrument so as to bind all the persons, except himself. In
order to boost their deposits many banks open minor accounts with some restrictions.

Mobile Banking : With the help of M-Banking or mobile banking customer can check his bank balance,
order a demand draft, stop payment of a cheque, request for a cheque book and have information about
latest interest rates.

Money Laundering : When a customer uses banking channels to cover up his suspicious and unlawful
financial activities, it is called money laundering.

Money Market : Money market is not an organized market like Bombay Stock Exchange but is an
informal network of banks, financial institutions who deal in money market instruments of short term like
CP, CD and Treasury bills of Government.

Moratorium : R.B.I. imposes moratorium on operations of a bank; if the affairs of the bank are not
conducted as per banking norms. After moratorium R.B.I. and Government explore the options of
safeguarding the interests of depositors by way of change in management, amalgamation or take over or
by other means.

Mortgage : Transfer of an interest in specific immovable property for the purpose of offering a security
for taking a loan or advance from another. It may be existing or future debt or performance of an
agreement which may create monetary obligation for the transferor (mortgagor).

NABARD : National Bank for Agriculture & Rural Development was setup in 1982 under the Act of 1981.
NABARD finances and regulates rural financing and also is responsible for development agriculture and
rural industries.

Negotiation : In the context of banking, negotiation means an act of transferring or assigning a money
instrument from one person to another person in the course of business.

Non-Fund Based Limits : Non-Fund Based Limits are those type of limits where banker does not part
with the funds but may have to part with funds in case of default by the borrowers, like guarantees, letter
of credit and acceptance facility.

Non-Resident : A person who is not a resident of India is a non-resident.

Non-Resident Accounts : Accounts of non-resident Indian citizens opened and maintained as per R.B.I.
Rules.

Notary Public : A Lawyer who is authorized by Government to certify copies of documents .

NPA Account : If interest and instalments and other bank dues are not paid in any loan account within a
specified time limit, it is being treated as non-performing assets of a bank.

Off Balance Sheet Items : Those items which affect the financial position of a business concern, but
do not appear in the Balance Sheet E,g guarantees, letters of credit . The mention "off Balance Sheet
items" is often found in Auditors Reports or Directors Reports.

Online Banking : Banking through internet site of the bank which is made interactive.
Pass Book : A record of all debit and credit entries in a customer's account. Generally all banks issue
pass books to Savings Bank/Current Account Holders.

Personal Identification Number (PIN) : Personal Identification Number is a number which an ATM
card holder has to key in before he is authorized to do any banking transaction in a ATM .

Plastic Money : Credit Cards, Debit Cards, ATM Cards and International Cards are considered plastic
money as like money they can enable us to get goods and services.

Pledge : A bailment of goods as security for payment of a debt or performance of a promise, e.g pledge
of stock by a borrower to a banker for a credit limit. Pledge can be made in movable goods only.

Post-Dated Cheque : A Cheque which bears the date which is subsequent to the date when it is
drawn. For example, a cheque drawn on 8th of February, 2007 bears the date of 12th February, 2007.

Power of Attorney : It is a document executed by one person - Donor or Principal, in favour of another
person , Donee or Agent - to act on behalf of the former, strictly as per authority given in the document.

Premature Withdrawals : Term deposits like Fixed Deposits, Call Deposits, Short Deposits and
Recurring Deposits have to mature on a particular day. When these deposits are sought to be withdrawn
before maturity , it is premature withdrawal.
Prime Lending Rate (PLR) : The rate at which banks lend to their best (prime) customers.
Priority Sector Advances : consist of loans and advances to Agriculture, Small Scale Industry, Small
Road and Water Transport Operators, Retail Trade, Small Business with limits on investment in
equipments, professional and self employed persons, state sponsored organisations for lending to SC/ST,
Educational Loans, Housing Finance up to certain limits, self-help groups and consumption loans.

Promissory Note : Promissory Note is a promise / undertaking given by one person in writing to
another person, to pay to that person , a certain sum of money on demand or on a future day.

Provisioning : Provisioning is made for the likely loss in the profit and loss account while finalizing
accounts of banks. All banks are supposed to make assets classification . and make appropriate
provisions for likely losses in their balance sheets.

Public Sector Bank : A bank fully or partly owned by the Government.

Rescheduling of Payment : Rearranging the repayment of a debt over a longer period than originally
agreed upon due to financial difficulties of the borrower.

Restrictive Endorsement : Where endorser desires that instrument is to be paid to particular person
only, he restricts further negotiation or transfer by such words as "Pay to Ashok only". Now Ashok cannot
negotiate the instrument further.

Right of Appropriation : As per Section 59 of the Indian Contract Act, 1972 while making the
payment, a debtor has the right to direct his creditor to appropriate such amount against discharge of
some particular debt. If the debtor does not do so, the banker can appropriate the payment to any debt of
his customer.

Right of Set-Off : When a banker combines two accounts in the name of the same customer and
adjusts the debit balance in one account with the credit balance in other account, it is called right of setoff. For example, debit balance of Rs.50,000/- in overdraft account can be set off against credit balance of
Rs.75,000/- in the Savings Bank Account of the same customer, leaving a balance of Rs.25,000/- credit in
the savings account.

Safe Custody : When articles of value like jewellery, boxes, shares, debentures, Government bonds,
Wills or other documents or articles are given to a bank for safe keeping in its safe vault,it is called safe
custody.. Bank charges a fee from its clients for such safe custody.

Savings Bank Account : All banks in India are having the facility of opening savings bank account
with a nominal balance. This account is used for personal purposes and not for business purpose and
there are certain restrictions on withdrawals from this type of account. Account holder gets nominal
interest in this account.

Teller : Teller is a staff member of a bank who accepts deposits, cashes cheques and performs other
banking services for the public.

Underwriting : is an agreement by the underwriter to buy on a fixed date and at a fixed rate, the
unsubscribed portion of shares or debentures or other issues. Underwriter gets commission for this
agreement.

Universal Banking : When Banks and Financial Institutions are allowed to undertake all types of
activities related to banking like acceptance of deposits, granting of advances, investment, issue of credit
cards, project finance, venture capital finance, foreign exchange business, insurance etc. it is called
Universal Banking.

Virtual Banking : Virtual banking is also called internet banking, through which financial and banking
services are accessed via internet's world wide web. It is called virtual banking because an internet bank
has no boundaries of brick and mortar and it exists only on the internet.

Wholesale Banking : Wholesale banking is different from Retail Banking as its focus is on providing for
financial needs of industry and institutional clients.

Demand Deposit A Demand deposit is the one which can be withdrawn at any time, without
any notice or penalty; e.g. money deposited in a checking account or savings account in a bank.
Time Deposit Time deposit is a money deposit at a banking institution that cannot be
withdrawn for a certain "term" or period of time. When the term is over it can be withdrawn or it
can be held for another term.
Fixed Deposits FDs are the deposits that are repayable on fixed maturity date along with the
principal and agreed interest rate for the period. Banks pay higher interest rates on FDs than the
savings bank account.
Recurring Deposits These are also called cumulative deposits and in recurring deposit
accounts, a certain amounts of savings are required to be compulsorily deposited at specific
intervals for a specified period.
Savings Account Savings account is an account generally maintained by retail customers that
deposit money (i.e. their savings) and can withdraw them whenever they need. Funds in these
accounts are subjected to low rates of interest.
Current Accounts These accounts are maintained by the corporate clients that may be
operated any number of times in a day. There is a maintenance charge for the current accounts
for which the holders enjoy facilities of easy handling, overdraft facility etc.
FCNR Accounts Foreign Currency Non-Resident accounts are the ones that are maintained by
the NRIs in foreign currencies like USD, DM, and GBP etc. The account is a term deposit with
interest rates linked to the international rates of interest of the respective currencies.
NRE Accounts Non-Resident External accounts are the ones in which NRIs remit money in
any permitted foreign currency and the remittance is converted to Indian rupees for credit to
NRE accounts. The accounts can be in the form of current, saving, FDs, recurring deposits. The
interest rates and other terms of these accounts are as per the RBI directives.
Cheque Book - A small, bound booklet of cheques. A cheque is a piece of paper produced by
your bank with your account number, sort-code and cheque number printed on it. The account
number distinguishes your account from other accounts; the sort-code is your bank's special code
which distinguishes it from any other bank.
Cheque Clearing - This is the process of getting the money from the cheque-writer's account
into the cheque receiver's account.

Clearing Bank - This is a bank that can clear funds between banks. For general purposes, this is
any institution which we know of as a bank or as a provider of banking services.
Bounced Cheque - when the bank has not enough funds in the relevant account or the account
holder requests that the cheque is bounced (under exceptional circumstances) then the bank will
return the cheque to the account holder. The beneficiary of the cheque will have not been paid.
This normally incurs a fee from the bank.
Credit Rating - This is the rating which an individual (or company) gets from the credit
industry. This is obtained by the individual's credit history, the details of which are available
from specialist organisations like CRISIL in India.
Credit-Worthiness - This is the judgement of an organization which is assessing whether or not
to take a particular individual on as a customer. An individual might be considered credit-worthy
by one organisation but not by another. Much depends on whether an organization is involved
with high risk customers or not.
Interest - The amount paid or charged on money over time. If you borrow money interest will be
charged on the loan. If you invest money, interest will be paid (where appropriate to the
investment).
Overdraft - This is when a person has a minus figure in their account. It can be authorized
(agreed to in advance or retrospect) or unauthorized (where the bank has not agreed to the
overdraft either because the account holder represents too great a risk to lend to in this way or
because the account holder has not asked for an overdraft facility).
Payee - The person who receives a payment. This often applies to cheques. If you receive a
cheque you are the payee and the person or company who wrote the cheque is the payer.
Payer - The person who makes a payment. This often applies to cheques. If you write a cheque
you are the payer and the recipient of the cheque is the payee.
Security for Loans - Where large loans are required the lending institution often needs to have a
guarantee that the loan will be paid back. This takes the form of a large item of capital outlay
(typically a house) which is owned or partly owned and the amount owned is at least equivalent
to the loan required.
Internet Banking - Online banking (or Internet banking) allows customers to conduct financial
transactions on a secure website operated by the bank.

Credit Card - A credit card is one of the systems of payments named after the small plastic card
issued to users of the system. It is a card entitling its holder to buy goods and services based on
the holder's promise to pay for these goods and services.
Debit Card Debit card allows for direct withdrawal of funds from customers bank accounts.
The spending limit is determined by the available balance in the account.
Loan - A loan is a type of debt. In a loan, the borrower initially receives or borrows an amount
of money, called the principal, from the lender, and is obligated to pay back or repay an equal
amount of money to the lender at a later time. There are different kinds of loan such as the house
loan, auto loan etc.
Bank Rate - This is the rate at which central bank (RBI) lends money to other banks or financial
institutions. If the bank rate goes up, long-term interest rates also tend to move up, and viceversa.
CRR - CRR means Cash Reserve Ratio. Banks in India are required to hold a certain proportion
of their deposits in the form of cash with Reserve Bank of India (RBI). This minimum ratio is
stipulated by the RBI and is known as the CRR or Cash Reserve Ratio. Thus, When a banks
deposits increase by Rs100, and if the cash reserve ratio is 9%, the banks will have to hold
additional Rs 9 with RBI and Bank will be able to use only Rs 91 for investments and lending /
credit purpose. Therefore, higher the ratio (i.e. CRR), the lower is the amount that banks will be
able to use for lending and investment. This power of RBI to reduce the lendable amount by
increasing the CRR makes it an instrument in the hands of a central bank through which it can
control the amount that banks lend. Thus, it is a tool used by RBI to control liquidity in the
banking system.
SLR - SLR stands for Statutory Liquidity Ratio. This term is used by bankers and indicates the
minimum percentage of deposits that the bank has to maintain in form of gold, cash or other
approved securities. Thus, we can say that it is ratio of cash and some other approved to
liabilities (deposits). It regulates the credit growth in India.
ATM - An automated teller machine (ATM) is a computerised telecommunications device that
provides the clients with access to financial transactions in a public space without the need for a
cashier, human clerk or bank teller. On most modern ATMs, the customer is identified by
inserting a plastic ATM card with a magnetic stripe or a plastic smart card with a chip, that
contains a unique card number and some security information such as an expiration date or CVV.
Authentication is provided by the customer entering a personal identification number (PIN)
Bank rate - Bank rate is the rate at which RBI lends money to other banks or financial
institutions or commercial banks. If bank rate is increased by RBI, then all banks will also hike

their own lending rates such as deposit rates and prime lending rates etc.......Bank rate is also
known as the discount rate and it is the oldest instrument of monetary policy. The bank rate
policy seeks to affect both the cost and availability of credit.
CRR - CRR is a bank regulation that sets the minimum reserves each bank must hold to
customer deposits and notes. Banks in India are required to hold a certain proportion of their
deposits in the form of cash. However, actually banks don't hold these as cash with themselves,
but deposit such case with RBI, which is considered as equivalent to holding cash with
themselves. These reserves are designed to satisfy withdrawal demands, and would normally be
in the form of authorized currency stored in a bank vault or with RBI. The reserve ratio is
sometimes used as a tool in the monetary policy, influencing the country's economy, borrowing
and interest rates. CRR is also known as cash asset ratio or liquidity ratio. The RBI is empowered
to vary CRR between 3% and 20% respectively.
SLR - Every bank is required to maintain at the close of business every day, a minimum
proportion of their net demand and time liabilities as liquid assets in the form of cash, gold or
approved securities. This percentage is fixed by RBI. The maximum and minimum limits for the
SLR are 40% and 25% respectively.
Repo Rate-It is also called as repurchase rate. It is the rate at which RBI lends short term money
to the banks. When the banks have any shortage of funds they can borrow it from RBI. A
reduction in the repo rate will halp banks to get money at a cheaper rate. When the repo rate
increases, borrowing from RBI becomes expensive.
Reverse Repo rate-Reverse repo rate is the rate at which RBI borrows money from banks.
When liquidity or cash floating is excess in banks, RBI sucks it out by reverse repo by lending
securities and taking out money from banks.
Some very useful terms for General Awareness & Banking Interviews

Balance of Payment is the summation of imports and exports made between one countries and
the other countries that it trades with.
Balance of trade: The difference in value over a period of time between a country's imports and
exports.
Base year: In the construction of an index, the year from which the weights assigned to the
different components of the index is drawn. It is conventional to set the value of an index in its
base year equal to 100.
Bill of exchange: A written, dated, and signed three-party instrument containing an
unconditional order by a drawer that directs a drawee to pay a definite sum of money to a payee

on demand or at a specified future date. Also known as a draft. It is the most commonly used
financial instrument in international trade.
Bretton Woods: An international monetary system operating from 1946-1973. The value of the
dollar was fixed in terms of gold, and every other country held its currency at a fixed exchange
rate against the dollar; when trade deficits occurred, the central bank of the deficit country
financed the deficit with its reserves of international currencies. The Bretton Woods system
collapsed in 1971 when the US abandoned the gold standard.
Call money: Price paid by an investor for a call option. There is no fixed rate for call money. It
depends on the type of stock, its performance prior to the purchase of the call option, and the
period of the contract. It is an interest bearing band deposits that can be withdrawn on 24 hours
notice.
Capital account; Part of a nation's balance of payments that includes purchases and sales of
assets, such as stocks, bonds, and land. A nation has a capital account surplus when receipts from
asset sales exceed payments for the country's purchases of foreign assets. The sum of the capital
and current accounts is the overall balance of payments.
Current account: Part of a nation's balance of payments which includes the value of all goods
and services imported and exported, as well as the payment and receipt of dividends and interest.
A nation has a current account surplus if exports exceed imports plus net transfers to foreigners.
The sum of the current and capital accounts is the overall balance of payments.
Currency appreciation: An increase in the value of one currency relative to another currency.
Appreciation occurs when, because of a change in exchange rates; a unit of one currency buys
more units of another currency. Opposite is the case with currency depreciation.
Fiscal deficit is the gap between the government's total spending and the sum of its revenue
receipts and non-debt capital receipts. The fiscal deficit represents the total amount of borrowed
funds required by the government to completely meet its expenditure
Foreign exchange reserves: The stock of liquid assets denominated in foreign currencies held
by a government's monetary authorities (typically, the finance ministry or central bank). Reserves
enable the monetary authorities to intervene in foreign exchange markets to affect the exchange
value of their domestic currency in the market. Reserves are invested in low-risk and liquid
assets, often in foreign government securities.
Gross domestic product (GDP): Gross Domestic Product: The total of goods and services
produced by a nation over a given period, usually 1 year. Gross Domestic Product measures the

total output from all the resources located in a country, wherever the owners of the resources
live.
Gross national product (GNP) is the value of all final goods and services produced within a
nation in a given year, plus income earned by its citizens abroad, minus income earned by
foreigners from domestic production. The Fact book, following current practice, uses GDP rather
than GNP to measure national production. However, the user must realize that in certain
countries net remittances from citizens working abroad may be important to national well being.
GNP equals GDP plus net property income from abroad.
Inflation: In economics, inflation is a rise in the general level of prices of goods and services in
an economy over a period of time. When the price level rises, each unit of currency buys fewer
goods and services; consequently, inflation is also erosion in the purchasing power of money a
loss of real value in the internal medium of exchange and unit of account in the economy.
International Monetary Fund (IMF) An autonomous international financial institution that
originated in the Bretton Woods Conference of 1944. Its main purpose is to regulate the
international monetary exchange system, which also stems from that conference but has since
been modified. In particular, one of the central tasks of the IMF is to control fluctuations in
exchange rates of world currencies in a bid to alleviate severe balance of payments problems.
Monetary policy: The regulation of the money supply and interest rates by a central bank in
order to control inflation and stabilize currency. If the economy is heating up, the central bank
(such as RBI in India) can withdraw money from the banking system, raise the reserve
requirement or raise the discount rate to make it cool down. If growth is slowing, it can reverse
the process - increase the money supply, lower the reserve requirement and decrease the discount
rate. The monetary policy influences interest rates and money supply.
Subsidy: A payment by the government to producers or distributors in an industry to prevent the
decline of that industry (e.g., as a result of continuous unprofitable operations) or an increase in
the prices of its products or simply to encourage it to hire more labor (as in the case of a wage
subsidy). Examples are export subsidies to encourage the sale of exports; subsidies on some
foodstuffs to keep down the cost of living, especially in urban areas; and farm subsidies to
encourage expansion of farm production and achieve self-reliance in food production.
Treasury bill: A short-term debt issued by a national government with a maximum maturity of
one year. Treasury bills are sold at discount, such that the difference between purchase price and
the value at maturity is the amount of interest.

WTO: The World Trade Organization is a global international organization dealing with the
rules of trade between nations. It was set up in 1995 at the conclusion of GATT negotiations for
administering multilateral trade negotiations.
1. What is SLR Rate?
Every bank needs to maintain a certain amount of funds ( cash, gold, government approved
securities) before they can legally give loans or credits to its customers.This is called statutory
liquidity ratio.
This rate is fixed by the reserve bank of India to control the expansion of loans.You may want to
know how the reserve bank determines the SLR rate.Actually SLR is determined as the % of
total demand and time liabilities.
Time liabilities
These are the liabilities that the banks are supposed to pay the customers any time whenever they
ask.
SLR is also a monetary regulation tool used by the reserve bank for controlling the monetary
system in the country effectively.
2. What is Bank Rate?
Bank rate is also called as the discount rate.It is in fact the interest rate charged by the central
bank when giving loans to the commercial banks.Remember that it is different from the Repo
rate.
This rate is also an effective monetary regulation tool used by the reserve bank of India.

3. What is Inflation?
This is one common term which is can be seen in the newspapers on every day basis.
It is the increase in the prices of goods and services in the economy.When the normal prices of
goods increases, generally the economy can be said to be inflating. Actually this happens when
there is more demand and less supply. In such a case the existing goods will be rated high and the
general prices of such goods increases.
4. What is Deflation?

This is just the opposite of inflation. Here the prices of goods ad services comes down
continuously.Here you can also infer that there will be more supply and less buyers. Hence the
general value of the goods gets reduced and even the goods will be sold below their market rates.

1.

What is bank?
Ans. Bank is financial institution which accepts deposits from the public for
the purpose of
lending.
2. Types of banks?
Ans. Nationalized banks
Private Banks
Foreign banks
Regional rural banks2
Co-operative banks
Industrial banks etc..,
3. What is a nationalized bank?
Banks which are owned and run by government of India are called as
nationalized banks.
Example: Canara bank, syndicate bank, Vijaya bank, etc..,
There are total 20 nationalized banks.
State bank of India has got 7 subsidiaries they are State bank of Hyderabad,
State bank of
Mysore, State bank of Travancore, State bank of Indore, State bank of
Sourashtra, State bank of
Bikaner, state bank of Jaipur.
5. What is a Private bank?
Ans. Banks which are owned and run by individuals are called private banks.
Example: karnataka bank, karurvysya bank, lakshmivilas bank etc..,
6. What are foreign banks?
Ans. Banks which are foreign originated [based] are called foreign banks
Example: Citi bank, YES bank etc..,
7. What is RBI [Reserve Bank of India], when it is established and what are its
functions?
Ans: RBI established in 1935, its head office in Mumbai. Present Governor of
RBI D. Subba
Rao.
Its functions:
1. Issues currency notes
2. Acts as bankers bank
3. Maintains foreign exchange reserves
4. Maintains CRR and SLR3

RBI is also called as "bankers bank", because all banks will have a/c's with
RBI. It provides
funds to all banks hence it is called as BANKERS BANK.
8. What is RRB'S (regional rural banks)?
Ans. Main purpose of RRBs is to improve banking habit in rural areas and
save formers from
money lenders.
RRBs works under supervision of NABARD (National Bank for Agriculture and
Rural
Development).
NABARD head office is at MUMBAI.
Example of RRB'S: Pragathi grameena bank, Rayalaseema grameena bank
etc.
Every grameena bank is soponsered by a nationalised bank.
Example: Pragathi grameena bank is sponsored by "Canara bank".
Share capital in RRBs: Central government: 50%
Sponsored bank: 35%
State government: 15%
9.What are co-operative banks?
Ans. The main purpose of co-operative banks is to co-operate small scale
industries, and to
provide small loans.
Example: Bellary dist co-op bank etc.
10. What are industrial banks?
Ans. The main purpose of industrial banks is to provide big loans to large
scale industries.
Examples: IDBI bank, Industrial bank of India etc..,
11. Types of accounts in banks?
Ans. Savings bank account [SB a/c]: The main purpose of SB a/c is to
encourage small
savings from the public. Interest paid on SB a/c is 3 percent. Any individual
can open SB a/c. An
Indian residing at abroad can open a NRI a/c. NRI represents non-resident
Indians. 4
Current account: Its a running and active account. No interest is paid on
current a/c.
Current accounts can be opened on firm names. Even individuals can also
open current a/cs. But
on firm names you cannot open SB a/c.
Fixed Deposit account: Amount is kept for a fixed period. Higher rate of
interest will be
paid on this a/c.
Recurring deposit [RD a/c]: A fixed amount can be deposited in monthly
installments.
Interest rate is same as fixed deposits.

12. What is Cheque?

Ans. 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
.
13. What is crossing?
Ans. Two parallel lines drawn on the top left corner of the cheque.
14. What is account payee cheque?
Ans. Account payee cheques can be routed only through accounts.
15. What is a post dated cheque?
Ans. The date on the cheque beyond todays date then cheque becomes post
dated.
16. What is stale cheque?
Ans. Cheque is valid for six months. If the date on the cheque is before six
months, then the
cheque becomes stale cheque.
17. What is a mutilated cheque?
Ans. It is a damaged cheque.
18. What is At Par cheque?
Ans. It is payable anywhere in India.
19. What is Multi city cheque?
Ans. A cheque which is payable in any branch of a particular bank.
20. What is Repo rate?
Ans. The rate at which RBI lends money to other banks.5
Present repo rate 7.25 percentage.
21. What is Reverse Repo rate?
Ans. The rate at which RBI pays interest to the banks.
Present Reverse Repo rate 6.25 percentage.
22. Which bank is called as Central bank?
Ans. RBI is also called as Central bank.
23. What is Internet banking?
Ans. Banking through internet.
24. What is Inflation?
Ans. It is a state where money looses the value hence prices will go up (or)
Decreasing the value
of money.
25. What is Deflation?
Ans. It is opposite to inflation. Money will have more value. Here the products

looses the value.

26. What is Debit cum ATM card?
Ans. The customer can deposit and withdraw cash by means of magnetic ATM
card.
27. What is ATM?
Ans. Automatic Teller Machine.
28. What is PLR and BPLR?
Ans. PLR - Prime Lending Rate.
BPLR - Basic Prime Lending Rate.
29. What is Credit card?
Ans. Credit card is a plastic instrument that can be used for the purchase of
goods and services.
You can buy the services and then pay the cash to the bank. Limits will be
fixed based on the net
worth of the customer.
Leading credit cards: VISA, MASTER.6
30. What is an NRI a/c?
Ans. NRI stands for Non Resident Indian. An Indian who is residing in abroad
can open an SB
a/c in Indian banks. These accounts are called NRI a/cs.
31. What is CRR and SLR?
Ans. CRR: Cash Reserve Ratio It is the ratio of physical cash that every bank
has to keep with
RBI.
SLR: Statutory Liquidity Ratio It is the ratio of liquid assets that every bank
has to keep
with RBI.
32. What is RTGS and NEFT?
Ans. RTGS: Real Time Gross Settlement.
NEFT: National Electronic Fund Transfer.
These two are the two methods through which funds can be transferred from
one bank to
another bank.
33. What is NPA?
Ans. NPA: Non Performing Asset: When a loan becomes bad then it becomes
NPA.
34. What is online banking?
Ans. Nothing but any where banking. A customer can operate his account
from any branch of a
particular bank.

IBPS Banking Questions for Interview 50 Bank Terms Must

Here is the utimate list of banking related IBPS bank interview questions.If you prepare these
questions you can be assured that you will have sound knowledge in banking.
1. What is meant by Repo Rate?
2. What is meant by Reverse Repo Rate?
3. What do you mean by CRR Rate?
4. What is meant by SLR Rate?
5. What do you mean by Bank Rate?
6. What is meant by Inflation?
7. What is meant by Deflation?
8. What is meant by Deposit Rate?
9. What is meant by FII?
10. What do you mean by FDI?
11. What is meant by IPO?
12. What is meant by Disinvestment?
13. What do you mean by Fiscal Deficit?
14. What is meant by Revenue deficit?
15. What do you mean by GDP?
16. What is meant by GNP?
17. What is meant by National Income?
18. What do you mean by Per Capita Income?
19. What is meant by Vote on Account?
20. Explain the Differences between a Vote on Account and an Interim Budget?
21. What is meant by SDR?
22. What is meant by SEZ?
23. What is meant by Open Market operations (OMO)?
24. What is meant by Micro Credit?
25. What do you mean by KYC?
26. What is cash profit?
27. What is meant by Liquidity Adjustment Facility (LAF)?
28. What is meant by RTGS System?
29. What is meant by Bancassurance?
30. What is meant by Wholesale Price Index (WPI)?
31. What is meant by Consumer price Index (CPI)?
32. What is meant by Venture Capital?

33. What do you mean by Treasury Bills?

34. What is meant by Banking Ombudsmen Scheme?
35. What do you mean by Subsidy?
36. What is meant by Debenture?
37. What are the types of debentures?
38. What do you mean by hedge fund?
39. What is meant by FCCB?
40. What is meant by Capital Account Convertibility (CAC)?
41. What is meant by Current Account Convertibility?
42. What is meant by Arbitrage?
43. What do you mean by Capitalism?
44. What is meant by Socialism?
45. Explain prepayment and default risk
46. What are your techniques to estimate your teams performance?
47. What is transaction and core banking?
48. What is the importance of NRI banking?
49. What is meant by ULIP?
50. Forex? Have you heard about it?What is it?
Here are some of the basic interview questions asked in the IBPS PO interviews 2012.The
questions of basic nature has been selected so that you can start your preparation finding answers
to the easy ones.
1. Where are you from?
2. What can you tell us about your home town?
3. Tell me about your family
4. If you get the job will you be ready to work anywhere in India?
5. Do you think your parents will allow you to work anywhere across India?
6. What is your ambition in life?
7. The why are you applying for the post of clerk?
8. Did you prepare for the interview?
9. What all questions did you prepare?
10. What are your strengths and weaknesses?
11. Dont you think you are over qualified for this simple job?
12. Why not software after engineering?
13. Do you have any bank account?
14. Where and why?
15. What type of bank account do you have?
16. What are the types of bank accounts?
17. What all details you need to fill up while withdrawing cash from the bank?
18. What do you mean by International Trade?

19. What is Balance of Payment?

20. Why do you want to work in this bank?
21. Have you applied for any other banks?
22. What do you know about this bank?
23. Have you gone through our website?
24. What is missing in the design of our website compared to the website of other banks?
25. Have you attended any bank interviews before?
26. What can you say about the recent regime change in uttar pradesh
27. What are the states where elections are going on
28. What are the main differences you see in a private bank and public bank?
29. Have you heard about Basel 2?
30. What is the importance of Basel 2 in the present banking environment?