Bank Interview Questions and Answers for IBPS PO, SBI PO, IBPS Clerical, IBPS SO, SBI clerical jobs:

Banking and Economics related questions are most generally asked in Bank job interviews to test the candidates knowledge about the Banking and Financial Industry. It is better to go through the range of questions that a candidate of Bank exam can be asked by the Interview Board. This Article lists some of the basic Bank interview Questions and Answers to increase candidate’s Banking Awareness knowledge. These Banking related questions  must be prepared before appearing for the interview.

Sample Bank Interview Questions and Answers:

1. Define Banking?
   • In General terms, Banking is a business activity which involves acceptance of deposits and lending out that money to earn a profit.
2. What is a Bank?
   • A Bank is a financial institution which accepts different forms of deposits and lends them to the prospective borrowers and allows the facility of withdrawing money by cheque.
3. What is a NBFC?
   • Non-Banking Financial Company.
4. Difference between a Bank and a NBFC?
   • If a financial institution has all the functions of a bank but does not allow the depositors to withdraw money on demand by issuing a cheque, then that institution is called as a Non-Banking Financial Company(NBFC).
5. What is Money Market?
   • Short term financial market
6. What is Capital Market?
   • Long-term Financial Market
7. What are the various types of economies?
   • Socialist, Capitalist and Mixed. India is a mixed economy.
8. Classify the various sectors of an Economy?
   • Primary sector – which deals with direct use of natural resources. e.g Agriculture, Fisheries etc.
   • Secondary Sector – which uses the products produced by the primary sector as raw materials. e.g textile, automobile industry etc.
   • Tertiary Sector – which provides services. eg. Education, telecom etc.
9. What is GDP, NDP, GNP, NNP, National Income, Per Capita Income?
   • GDP– Gross Domestic Product. It is the value of total goods and services produced within the boundary of a nation in a financial year.
   • NDP– Net Domestic Product. NDP = GDP-Depriciation .
   • GNP– Gross National Product. GNP is the GDP of a country added with its income from abroad.
   • NNP– Net National Product. NNP= GNP-Depriciation.
   • National Income– NNP is called as the National Income of a country.
   • Per Capita income – National Income divided by total Population.
10. What is the share of different sectors of economy in the GDP of India?
    • Agriculture – around 15%
    • Manufacturing – around 21%
    • Services – around 64%
11. What is FMC?
    • Forwards Market Commission.  It is the apex body for the regulation of commodity market in India. Its headquarters is at Mumbai. Union-Budget 2015-16 has declared that FMC will be merged with SEBI.
12. When did RBI came into existence?
    • 1 April 1935
13. When was RBI nationalised?
    • Jan 1 , 1949
14. What is the role/functions of RBI in India?
    • Issue of Currency.
    • Custodian of Forex Reserves.
    • Acts as a banker to Banks.
    • Banker to the Government.
    • Agent of the Government in IMF.
    • announces credit and monetary policy.
    • works towards stabilizing the rate of inflation.
15. What is Financial Market?
    • The market of an economy where funds are transferred between Fund-surplus and Fund- scarce individuals and groups is known as the Financial market of that economy.
16. Different regulators present in India?
    • RBI – regulates Banking system.
    • SEBI(Securities and Exchange Board of India) – regulates Security market.
    • PFRDA(Pension Fund Regulatory and Development Authority) – regulates Pension sector.
    • IRDA (Insurance Regulatory and Development Authority)- regulates Insurance Sector.
17. Different Monetary Policy tools present with RBI?
    • CRR,SLR, Repo and Reverse Repo rate, PLR etc.
18. What is Call Money Market?
    • Basically an inter-bank money market where funds are borrowed and lent. No Collateral is required.
19. Where is Headquarters of RBI located?
    • Mumbai
20. What is a Payment Gateway?
    • A Payment is a dedicated server that allows linking a merchant website and banks to make the online transactions possible.
21. What is IMPS?
    • IMPS stands for Immediate Payment Service. IMPS offers the customers an instant, 24X7, interbank electronic fund transfer service through mobile phones. IMPS is an  tool to transfer money on real time basis within banks across India through mobile,internet and atm.
22. What is NFS?
    • It stands for National Financial Switch. It is the largest network of inter-connected ATMs in India.
23. What is a White-Label ATMs?
    • White-label ATMs are ATMs operated and maintained by a third-party or a non-bank entity.
24. What is a Brown-Label Atm?
    • Brown label’ ATM are those ATMs where hardware and the lease of the ATM machine is owned by a third-party, but cash management and connectivity to banking networks is provided by a sponsor bank whose brand is used on the ATM.
25. What is the role of NPCI?
    • National Payment Corporation of India. It is a Public Sector Company that functions a hub of all the Retail E-Payment transactions in the country.
26. What is RuPay card?
    • It is an Indian Domestic Card Scheme launched by NPCI. It competes directly with foreign cards like Mastercard and Visa.
27. List some major Payment Gateways?
    • CCAvenue, Atom, Citrus, EBS
28. Difference between Scheduled and Non-Scheduled Banks?
29. What are Open Market Operations?
30. What is LAF?
31. What is CRR?
32. What is SLR?
33. What is Repo rate and Reverse Repo rate?
34. Define Bank rate, MSF, Base rate.
    • Bank Rate- The Interest rate that RBI charges when it lends to any commercial bank in case of shortfall of funds.
    • MSF- Marginal Standing Facility. It means the interest rate at which the Banks can borrow money from RBI over and above what is available to them through LAF.
    • Base Rate- It is the minimum rate below which Banks are not allowed to lend money to the borrowers except certain conditions.
35. Why were Banks Nationalised?
36. History of Banking Nationalisation?
37. What are RRBs?
38. Define KYC?
39. What is the role of NABARD?
40. What is CRAR?
41. What is Basel Accord?
42. What do you mean ny PSL?
43. What is NPA?
44. What is Sarfaesi Act 2002?
45. Where is NSE and BSE located?
46. Indices of top Stock Exchanges?
47. What is the role of SEBI? where is H.Q. of SEBI located?
48. What is the difference between Current and Savings Account?
49. What is CASA ratio?
50. Why banks prefer higher CASA ratio?
51. What is Financial Inclusion?
52. What is Financial Literacy?
53. Who is the regulator of RRBs?
54. What is Liquidity?
55. How Inflation increases or decreases?
56. Is SBI a  nationalised bank?
57. What is CSR?
58. What is IFSC?
59. What is MICR?
60. Define Cheque Truncation System?
61. What is NEFT and RTGS?
62. What is the difference between Direct Tax and Indirect tax?
63. What is NDTL?
64. Define Treasury Bills?
65. What is NRO , NRE and NRNR, FCNR account?
66. What is a NOSTRO account?
67. What is VOSTRO account?
68. What is IPO?
69. What is the role of CIBIL?
70. What is Fiscal Deficit?
71. What is Revenue Deficit?
72. What is Current Account Deficit?
73. What is Trade Deficit?
74. What is BOP?
75. What is Balance of Trade?
76. What is an Escrow Account?
77. What is a No-Frills Account?
78. What is a Credit Card?
79. What is a Debit Card?
80. Define LIBOR?
81. What is a  BITCOIN?
82. What is E-payment? What are the various modes of E-Payments?
83. What is ECS?
84. What is a Digital Signature?
85. What is an ATM?
86. What is Retail Banking?
87. What is Wholesale Banking?
88. What are the three pillars of Basel-II?
89. What is the difference between FD and RD?
90. What do you mean by Plastic Money?
91. What is CBS?
    • It stands for Core Banking Solutions. It means that all the transactions that are carried out in a centralised environment which means that all the data relating to the accounts are stored in a central database rather than a branch server. So, all the networked branches can access the data. Hence the customer becomes customer of the Bank and not just the customer of the branch. ‘Core’ in CBS stands for Centralised Online Real-time Enviornment.
92. What is the difference between a Cheque and a Bank Draft?

Other important Bank Interview Questions and Answers:

1. You should be aware about various Committees related to Banking and Financial Sector.
2. Heads of various Financial bodies in India and Abroad?
3. Headquarters of various national and international bodies like World Bank, IMF etc.
4. CEOs of important companies.
5. Latest Census of India as well as your state.

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