27. What is
financial inclusion?
Answer: Financial inclusion is the availability
of banking services at a affordable cost in order to include the weaker section
of the society in the banking system.
28. What is
the difference between micro finance and micro credit?
Answer: Micro credit is giving a small amount of
loan to the customers whereas MicroFinance is a wide term. It includes small
loan + training on financial matters. In other words, Microfinance= Microcredit
+ Financial Literacy.
29. What Is
Priority Sector Credit?
Answer: All Indian banks and foreign banks (which
have more than 20 branches in India) are required give 40% of their credit to
priority sector out of which 18% is for agriculture. In case of Regional Rural
Banks, 60% credit is to be given to priority sector.
30. What Are
The Components Of The Monetary Policy Of Rbi?
Answer: The components of monetary policy include
CRR, Repo rate, reverse repo rate, SLR, MSF and Bank Rate.
31. What Is
Para Banking?
Answer: Para Banking includes all the services
provided by banks apart from day to day banking.
For example: Debit cards, Credit cards, Life
Insurance products, Cash Management services etc.
32. We hear
regularly that all bank branches are turning cbs. What is Cbs?
Answer: CBS stands for CORE banking solutions
under which the branches of the banks are interconnected with each other
through intranet with a central database server. The CORE word in CBS stands
for Centralized Online Real-time Exchange.
33. In the
changing banking scenario, what are the most important needs of the Banking
Industry?
Answer: We are living in a digital age, where every
day technological innovations our style of living, doing the business and even
the way we do a commercial transaction. The banks will have to catch up and
offer (a) Multi Channel Optimization (b) Digital Distribution and most
importantly (c) Effective Sales Efforts.
34. What is
the meaning of “base Rate”?
Answer: Base Rate is the minimum rate of interest,
which a bank has to charge from its customers, and a bank can’t sanction loan
on a rate below the base rate. Banks may choose any benchmark to decide on the
base rate.
The
exceptions of base rate are:-
o Agriculture
loans
o sponsored
schemes
o Staff loans
o Only under
the above cases, bank can lend below base rate.
o Only under
the above cases, bank can lend below base rate.
35. Please
discuss your views about the changes in banking scenario?
Answer: Banking sector has successfully been
adding new products and innovative services to its basket of products being
offered to retail customer and institutional customers. I think the banking
sector will keep its goal to accelerate the growth. Secondly each bank would
like to optimize its costs of marketing and distribution so as to keep its
overheads low without affecting its reach or quality of services.
With regards to changes, I feel that there
would be marketing strategy which would be “socially engaging”. The leading
banks would adopt “Intelligent Multichannel” approach over their brick and
mortar branch banking.
36. Tell us
something about bsbda?
Answer: BSBDA stands for Basic Savings Bank
deposit account. BSBDA is the new name for “no-frill accounts” under which
anyone can open a bank account with even zero balance in it or “zero balance
account”. This BSBDA is aimed at providing banking facilities to weaker section
of the society and improve financial inclusion.
37. What are
cooperative banks?
Answer: The main purpose of cooperative banks is
to co-operate small-scale industries, and to provide small loans.
Example: Karimnagar dist. co-op bank etc.
38. What are
the parts of banks’ capital?
Answer: Bank has following parts of capital:-
Tier 1
capital: Paid up
capital (core capital) + Reserves (owners or promoters’ fund)
Tier 2
capital: Secondary
Capital (borrowed funds) + general loss reserves + subordinated term debts +
undisclosed reserves (can’t be maintained in India)
Tier 3
capital: Same
as tier 2 capital but with a higher amount in order to face the market risks of
the bank.
39. What Is RBI
[reserve Bank of India], when it is established and what are Its Functions?
Answer: RBI established in 1935, its head office
in Mumbai. Present Governor of RBI “D. SubbaRao”.
Its
functions:
o Issues
currency notes
o Acts as
bankers bank
o Maintains
foreign exchange reserves
o Maintains CRR
and SLR
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.
40. What is
the difference between cheque and demand draft?
Answer: Cheque is a negotiable instrument, which
is paid to the bearer, but a demand draft is a negotiable instrument always
payable on order.
41. What Is RRB’s
(regional Rural Banks)?
Answer: Main purpose of RRBs is to improve
banking habit in rural areas and save formers from moneylenders.
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: “Canara bank” sponsors Pragathi
grameena bank.
Share capital in RRB’s: Central
government: 50%
Sponsored bank: 35%
State government: 15%
42. What Do
You Mean by Term “casa” Related To Bank?
Answer: CASA stands for Current Account Savings Account.
The CASA ratio shows how much deposit a bank has in the form of current and
saving account deposits in the total deposit. A higher CASA ratio means better
operating efficiency of the bank because on current account there is no
interest payable whereas on savings account a tiny 3.5% interest is payable by
the bank. CASA ratio shows how much of the deposit of the bank comes from the
current and savings deposit.
43. What Are
Foreign Banks?
Answer: Banks, which are foreign originated
[based], are called foreign banks
Example: Citi bank, YES bank etc.
44. What Is A
Private Bank?
Answer: Banks, which are owned and run by
individuals, are called private banks.
Example: karnataka bank, karur vysya bank,
lakshmi vilas bank etc.
45. What Are
The Various Risks That Banks Face?
Answer: There are mainly three types of risks
faced by banks:-
Credit Risk: loan or NPA.
Market Risk: Money invested in the market.
Operational
risk:
Day-to-Day working risks.
46. When
banks are nationalized?
Answer: In 1969: 14, banks were
nationalized.
In 1980: 6, banks were nationalized.
47. What Are
The Non-Performing Assets Of A Company?
Answer: A NPA is an obligation payable to the bank,
which has not been made, or the interest and principal amount has not been paid
on the due time. NPA is the loan or credit provided by the bank to its
customers which could not be recovered in due time. NPA is also known as “bad
debts”.
48. What Is A
Nationalized Bank?
Answer:
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 seven subsidiaries
they are State bank of Hyderabad, State bank of Mysore, State bank of
Travancore, State bank of Indore, State bank of Saurashtra, State bank of
Bikaner, state bank of Jaipur.
49. What is
the difference between nationalized banks and private banks?
Answer: A nationalized bank is owned by the govt.
of that country and is known as Public Sector Bank whereas an independent
individual or company owns a private sector bank.
50. Types of
Banks?
Answer:
o Nationalized
banks
o Private Banks
o Foreign banks
o Regional
rural banks
o Co-operative
banks
o Industrial
banks etc.
51. What is a
Non -banking financial company (nbfc)?
Answer: A NBFC is a company registered under the company’s
act, 1956 that is involved in the business of loans, shares/stocks, etc.
Non-banking financial companies are financial institutions that provide banking
services, but do not hold a banking license.
These institutions are not allowed to take
deposits from the public. NBFCs do offer all sorts of banking services, such as
loans and credit facilities, retirement planning, money markets, underwriting,
and merger activities.
52. What Is
Bank?
Answer: Bank is financial institution, which
accepts deposits from the public for lending.
Comments
Post a Comment