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Interview Capsule
Hello Dear AC Aspirants,
The IBPS PO Interviews are set to start from January. This interview is
meant to observe the attitude, confidence level and communication skills of the
candidate. The strategy that the candidate follows to answer the questions lets
the panel members decide the suitability of the candidate for the bank.
Here we are presenting to you all Interview Capsule for IBPS PO Interview.
This capsule includes all what you need to face an Interview. Go through this
capsule thoroughly as it will be really helpful for interview. We covered
everything from personal questions to each and every banking concept.
The future belongs to those who believe in the beauty of their dreams.
Always insist on yourself never imitate.
All the best for IBPS PO V Interview
with regards from AC team
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nationalized), Name of bank before nationalization (if any), Paid-up Capital and
worth of the bank, Number of branches in India and abroad etc. Basically you
have to know history, services, products, achievement, management (name of
CMD) etc of banks
2. International and national information on banking industry.
3. Brief information of Banking Regulation Act, RBI Act , Negotiable Instrument Act,
may not utter something inappropriate which you may regret later. Also
remember to speak in a polite and respectful manner.
6. Do not rush while speaking. Speak in a calm and composed manner so that you
may not utter something inappropriate which you may regret later. Also
remember to speak in a polite and respectful manner.
7. Be prepared for situation based questions related to personal life and resolving
women should wear clean and wrinkle free sober suits. Women should not wear
any floral dresses. It should be simple and sober.
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Banking Notes
What is a Bank?
Suppose you have got Rs.1,000 you dont need for or say for a year and want to earn
income from the money until then or you want to buy a house and need to borrow
Rs.100,000 and pay it back over 20 years.
It would be difficult for someone acting alone to find either a potential borrower who needs
exactly Rs.1,000 for a year or a lender who can spare Rs.100,000 for 20 years. Thats
where banks come in.
Bank is a financial institution that undertakes the banking activity i.e. it accepts
deposits and then lends the same to earn certain profit.
Now-a-days, banking sector acts as the backbone of modern business. Development of any
country mainly depends upon the banking system.
1) Loans: Lending loans to borrowers from the public is a major way for commercial
banks to earn money. These could be personal loan, home loan, car loan and other
type of mortgages. Banks generally restrict the amount of withdrawals to remain
solvent, especially for forwarding loans. This ensures that the money remains within
the bank. The amount is lent to a person at a higher interest rate for a fixed period of
time. As the loan amount starts getting recovered, the bank pays a portion of the
interest value to other depositors and keeps the remaining as its earning.
2) Credit Cards: Credit cards are unsecured loans extended by a commercial bank with the
sole intention of earning heavy interest. Availing a credit card, limited or unlimited value,
gives the person access to immediate funds and the person is charged premium fees by the
bank for extending this facility.
3) Public Deposits: Money kept by the public in savings and checking accounts is the
largest source of funds for commercial banks. The amount accountholders entrust the bank
with safekeeping earns them a very basic interest amount. These deposits are pooled
together and loaned out to other individuals or invested elsewhere. The banks earn interest
money and share the basic percentage with the savings or checking account holder.
4) Service Fees: Commercial banks levy service fees on its customers and even though the
service fees are marginal, it forms a large chunk of commercial bank earning medium.
Commercial banks charge service fees for ATMs, overdrafts, operating a simple savings
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Functions of Banks
1. The RBI logo was inspired from the East India Company Double Mohur.
2. Formed on April 1, 1935 as a private entity, but is a government entity now.
Nationalization of the central bank did not happen till 1949.
3. The financial year of RBI is from 1 July to 30 June.
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The Indian banking sector is classified into scheduled banks and non-scheduled banks.
All banks which are included in the Second Schedule to the Reserve Bank of India Act,
1934 are Scheduled Banks. These banks comprise Scheduled Commercial Banks and
Scheduled Co-operative Banks. Scheduled Co-operative Banks consist of Scheduled State Cooperative Banks and Scheduled Urban Cooperative Banks.
Scheduled Commercial Banks in India are categorized into five different groups:
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IDBI
It has power to deal with all matters concerning policy, planning as well as operations
in giving credit for agriculture and other economic activities in the rural areas.
A refinancing agency for those institutions that provide investment and production
credit for promoting the several developmental programs for rural development.
Improving the absorptive capacity of the credit delivery system in India, including
monitoring, formulation of rehabilitation schemes, restructuring of credit institutions,
and training of personnel.
Co-ordinates the rural credit financing activities of all sorts of institutions engaged in
developmental work at the field level.
Prepares rural credit plans, annually, for all districts in the country.
Promotes research in rural banking, and the field of agriculture and rural development.
Industrial Development Bank of India (IDBI) came into being on 1st July, 1964 as a
Development Financial Institutions under IDBI Act 1964.
*Key points:
Regarded as a Public Financial Institution in terms of Companies Act. It continued as
DFI till 2004 when it was transferred into a Bank. To transform this into Bank
Industrial Development Bank Act 2003 was passed.
A new company under the name of Industrial Development Bank of India Ltd. was
incorporated as a Govt company under the Companies Act on 27th September, 2004,
and thus now it came to be known as IDBI Ltd wef 1st October 2004 but it also
worked as a Bank in terms of the Repeal Act.
W.e.f. 2nd April, 2005, IDBI Bank Ltd. was finally amalgamated with IDBI Ltd. and
was known as IDBI Ltd. It is a Public Sector Bank as GoI has above 70% shareholding
in this Bank.
SIDBI
Small Industries Development Bank of India (SIDBI) was set up under an Act of Parliament in
1990. Though it was a wholly owned subsidiary of Industrial Development Bank of India,
presently the ownership is held by 33 Government of India owned / controlled institutions.
Functions:
NHB
National Housing Bank(NHB), a wholly owned subsidiary of Reserve Bank of India (RBI),
was set up by an Act of Parliament in 1987.
NHB is an apex financial institution for housing. It commenced its operations in 1988.
Objective:
To promote housing finance institutions both at local and regional levels and to provide
financial and other support incidental to such institutions and for matters connected
therewith
NHB registers, regulates and supervises Housing Finance Company (HFCs), keeps
surveillance through On-site & Off-site Mechanisms and coordinates with other
Regulators.
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World Bank
Stability
Growth
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Stock Exchanges
Companies engaged in the business of stockbroking/sub-broking
Venture Capital Fund Companies
Nidhi Companies
Insurance companies
Chit Fund Companies
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Maximum deposit amount insured by the DICGC Each depositor in a bank is insured
upto a maximum of Rs.1,00,000
If you have deposits with more than one bank, deposit insurance coverage limit is
applied separately to the deposits in each bank.
Kinds of deposits insured: All deposit accounts including savings, fixed, current,
recurring, except: Deposits of the Foreign Governments Deposits of the Central and
State Governments.
Insurance cost is fetched by the bank which is insured. The DICGC charges 10 paise
per Rs. 100 as insurance premium.
Long-term structures
State Cooperative Agriculture and Rural Development Banks (SCARDS): Operate at
state-level.
Primary Cooperative Agriculture and Rural Development Banks (PCARDBS): Operate
at district/block level.
Core points related to Monetary & Fiscal Policy
Both are complimentary to each other in balancing growth, unemployment and inflation.
Fiscal policy is by the government relates to the revenue and expenditure policies of the
government and also it is the use of government funds to influence the economy, like the
annual budget and taxation.
Monetary policy is administered by the central bank of the nation with regard to money
supply, interest rates etc.
Following are the instruments of Monetary Policy in India.
Cash Reserve Ratio (CRR) It is the share of net demand and time liabilities (deposits)
that banks must maintain as cash balance with the Reserve Bank.
Now what are Demand and Time Liabilities?
Demand Liabilities
Current Deposits, Savings bank deposits, Margins held against letters of credit/guarantees,
Balances in overdue fixed deposits, Outstanding DDs, Unclaimed deposits, Credit balances in
the Cash Credit account and deposits held as security for advances which are payable on
demand & Money at Call and Short Notice from outside the Banking System (Liability to
others).
Time Liabilities
Fixed deposits, cash certificates, cumulative and recurring deposits, time liabilities portion of
savings bank deposits, staff security deposits, margin held against letters of credit, if not
payable on demand, & deposits held as securities for advances which are not payable on
demand and Gold deposits.
Effect of increase and decrease
Lower CRR means bank can give more money as loan--> lower interest rates--> cheap
loan--> more people take loan to start business or building house or buying car-->boost in
economy. However, can also lead to inflation, if people have more cash in their hands than
the items available for purchase in the market.
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A fixed amount is deposited every month for a specified period and the total amount
is repaid with interest at the end of the particular fixed period.
Period of deposit is minimum six months and maximum ten years.
Interest rates vary for different plans based on the amount one saves and the period of
time and also on banks.
No withdrawals are allowed from the RD account. However, the bank may allow to
close the account before the maturity period.
Can be opened in single or joint names. Banks are also providing the Nomination
facility to the RD account holders.
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Its one time deposit and one time take away (withdraw) account. The money
deposited in this account can not be withdrawn before the expiry of period.
In case of need, the depositor can ask for closing the fixed deposit prematurely by
paying a penalty(usually of 1%, but some banks either charge less or no
penalty) The penalty amount varies with banks.
A high interest rate is paid on fixed deposits. The rate of interest paid for fixed
deposit vary according to amount, period and also from bank to bank.
Miscellaneous Deposits
CASA Deposits
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Security
Upto Rs.4,00,000: Parents need to be joint borrowers but security is not required.
Above Rs.4,00,000 and below Rs.7,50,000: Besides parents joint borrower condition, you
need to bring collateral security in the form of suitable third party guarantee will be taken.
But if banks satisfied with financial condition of the borrower then they may waive the
condition of third party collateral.
Securities: Pledge, Hypothecation,Mortgage
Pledge is when the property is offered as collateral or security. It is a right to reserve a legal
interest in something. Example- a lot of banks and credit unions have what is called "cross
collateral." So for instance, if you have a vehicle loan with a bank and also have a checking
account with the bank, there is an excellent chance that you've signed a contract provision
where you've "pledged" whatever funds you may have in your checking account from time to
time as additional security on the loan.
Hypothecation: It is used when you(borrower) have the actual possession of the asset, for
which you have taken the loan. Generally, this is charged against loans for movable assets,
like car, bus, etc. (vehicle loans). Here, the assets (bus, car, etc.) remain with you, and you
are hypothecated to the bank for the loan granted. In case you are unable to repay the loan
amount, then the bank has the right to sell the asset (bus, car, etc.), (which is possessed by
you) and recover the total amount (with interest).
Mortgage: It is used when you (borrower) have the actual possession of the assets, for
which you are granted loan (e.g., house loan), or against which you are granted loan (e.g.,
house mortgaged). Mortgages are generally those assets, which are permanently attached
with Earth surface, like house, land, factory etc.
In case you are unable to repay the loan amount, the bank has the right to seize and sell the
mortgage, and recover the loan amount (with interest).
MICR
MICR stands for Magnetic Ink Character Recognition.
It is a technology which allows machines to read and process cheques enabling
thousands of cheque transactions in a short time.
MICR code is usually a nine digit code
First three digits: Represent the city code that is the city in which the bank branch is
located.
Next three digits: Bank code
Last three digits: Bank branch code
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Timings:8 am to 7 pm(Monday
through Friday and also on Working
Saturdays i.e. Saturdays other than
2nd & 4th Saturdays)..
Decrease profitability.
Reduce capital assets and lending limits.
Increase loan loss reserves.
To issue demand notice to the defaulting borrower and guarantor, calling upon them to
discharge their dues in full within 60 days from the date of the notice.
To give notice to any person who has acquired any of the secured assets from the
borrower to surrender the same to the Bank.
To ask any debtor of the borrower to pay any sum due or becoming due to the
borrower.
Any Security Interest created over Agricultural Land cannot be proceeded with.
If the borrower fails to comply with the notice, the Bank may take recourse to the following
measures:
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Long-term liabilities
Creditors due after one year: Amounts due to be repaid in loans or financing after one
year, eg bank or directors' loans, finance agreements
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How liquid its assets are - how much is in the form of cash or can
Reserve Bank of India has Eased the norms for Home Loans
Reserve Bank of India has eased the norms for home loans for up to 10 lakh rupees by
authorizing the banks to include stamp duty, registration, and other documentation
charges to the cost of a unit.
HDFC Bank launched mobile app Chillr to instantly transfer money to any
person in India
HDFC Bank announced the launch of Chillr, a mobile app which allows users to instantly
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CSC, HCL form joint venture to provide technology services, solutions to banks
Global IT leaders CSC (NYSE: CSC) and HCL Technologies (BSE: HCLTECH) announced the
signing of a definitive joint venture agreement to form a banking software and services
company. The joint venture will invest in platform modernization and product functionality
enhancement and will capitalize on the proven capabilities of both companies in addressing.
Bandhan is the first microfinance company to transform into a bank. The bank will
have two distinct wings one will cater to the micro-banking segment, targeting the
rural and un-banked areas and the other will look at general banking services.
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The Reserve Bank of India issued guidelines for the Gold Monetisation Scheme
(GMS) that allow banks to fix their own interest rates on gold deposits.
The gold deposit scheme is aimed at mobilising part of an estimated 20,000 tonnes of
idle precious metal with households and institutions.
As Per guidelines
Banks will be free to set interest rate on such deposit, and principal and interest
of the deposit will be denominated in gold.
Depositor will get an option on redemption of principal and interest at maturity.
The designated banks will accept gold deposits under the Short Term (1-3
years) Bank Deposit (STBD) as well as Medium (5-7 years) and Long (12-15
years) Term Government Deposit Schemes.
The short term bank deposits will be applicable on cash reserve ratio (CRR) and
statutory liquidity ratio (SLR).
There is no bar for maximum gold deposit but the minimum deposit at one time
should be raw gold equivalent to 30 grams of 995 fineness standards.
Payments banks to expand reach of banking in rural areas: World Bank
11 new payments banks is expected to expand penetration of the banking sector in vast
rural areas of the country.
The payments banks would have simplified Know-Your-Customer (KYC), Anti
Money Laundering (AML) and Countering Financing of Terrorism (CFT) norms.
Japan offers to finance Indias first bullet train
Japan has offered to finance Indias first bullet train with an estimated cost of Rs. 90000
crores at an interest rate of less than 1%. The loan is likely to cover 80% of the project.
The loan is on the condition that India buys 30% of equipment including the coaches and
locomotives from Japanese firms
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As per Japan International Cooperation Agency (JICA) report travel between 505kilometre corridors linking Mumbai and Ahmedabad would be reduced to 2 hours
from existing 7 hours.
The bullet train is expected to have speeds between 300km/h and 350km/h.
This PSU bank has secured the award for its outstanding performance in official
language implementation under the category of nationalized banks in the
linguistic region B for the year 2014-15.
Ranjan Dhawan, MD & CEO of the Bank of Baroda received the award
The MUDRA Card issued as a Rupay Debit Card and it is a hassle free flexible
Credit Product that meets in working capital needs of Micro and Small
Entrepreneurs.
Cash can be withdrawn from any ATM or purchase from Merchandise
using POS machine.
In addition to that, Bank of Maharashtra is offering MUDRA loans at competitive
rates @ Base Rate and no processing charges are levied for the loans up to Rs
5.00 lakh.
Merging of SEBI and the FMC was decided by the Congress in the Union Budget
of 2014-15
SEBI was set up in 1988 as a non-statutory body for regulating the securities
markets. It became an autonomous body in 1992 with fully independent
powers.
FMC was a regulator for commodities markets since 1953 but due to lack of
powers it led to alleged irregularities and speculative ille
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Explain briefly about CAD and what is the current economic situation of our
country? Is CAD increasing or decreasing now? And why?
What is the impact of dollar outflow? Why there was ban on gold imports?
Explain trade deficit.
What is the benefit of lending?
How many types of loans are there?
Difference between Savings a/c and Savings student a/c?
What is marginal utility?
What is CRR and SLR?
How will you deal with a rural person if he comes to bank to open an account
without any documents?
What is nationalization of banks? What makes government to take up banks?
What is the first quality that a banker should posses?
What is the major problem that all the banks are facing?
Difference between credit card and debit card?
What is a negotiable instrument? How do you transfer a cheque to a payee?
If you have to pass a cheque related to a customer's current account then
what are the observations you will make?
What is MICR?
Which act is used for reducing NPA?
What is draft? What is cross cheque? What is the difference between cross
cheque and Bearer Cheque?
If you are seated in counter then a customer comes and asks you what i have
to do for opening an account then you said to him bring that document this
document he doesn't understand you. Do you have patience to make
understand him about the documents?
What are RTGS and NEFT? Full form and differences.
What is PIN? Can you disclose it to anybody?
Do you use debit card? For what purposes? What we require to use debit card
for payment?
What is Indian Banking System?
What is Banking Ombudsman and what is Single Window in bank?
What is Cross Selling.
Let's say that a new bank branch is about to come up then how will you
inform people about it and get customer?
What are the qualities required in candidate as a PO?
If one person came to you to break his fixed deposit because he needs some
money what will you do?
What is lead banking?
What is priority sector lending?
What is the procedure for granting loan?
Which technology is used in banking?
Payment and small bank purpose
Difference between savings account and current account.
What are the KYC norms?
What is demat account?
What is Purchasing Power Parity?
What is Narrow Banking and Payment gateways?
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What is the need for payment banks if there are other banks?
What is the benefit of high CASA for banks?
What is Net interest margin?
What are the benefits for a bank in defining risk categories?
We want to start an ATM in rural place where not even a landline connection
is there then how will you provide ATM? Can u tell the antenna name using In
this process?
What is contingent liability?
What is the use of marketing in banks?
What are the differences between private banks and nationalised banks?
What is mean by Cyber crime?
Do you know which bank give highest interest on saving accounts and how
much?
Interview Experiences
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Reasoning Questions
Quantitative Aptitude Questions
English Questions
Computer Questions
General Aptitude
Reasoning
Letter Writing
Math Tricks
Computer Awareness
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