IBPS PO

Important Interview Questions

Introduce yourself.

Should be holistic. Should talk about Born and brought up city, education, like and dislikes, work
ex, hobby.

Why Banking?

I'm interested in banking because it is a dynamic sector that combines financial services with
technological advancements to meet the needs of individuals and businesses. The banking
sector plays a crucial role in economic development by managing funds, providing credit, and
facilitating transactions, which aligns with my interest in economic systems and how they impact
societies.

What is a bank?

A bank is a financial institution licensed to receive deposits and make loans. It also offers
various other financial services, such as wealth management, currency exchange, and safe
deposit boxes. Banks play a key role in the financial system by mobilizing savings from
depositors and channeling them into lending activities, thereby facilitating economic growth.
They also implement government schemes aimed at financial inclusion and economic
development.

Why are banks important for our economy?

Banks are vital for our economy because they provide the necessary capital to businesses and
entrepreneurs, who may not have the required funds readily available. By offering loans, banks
enable these entities to invest, expand, and innovate, leading to economic growth. The interest
payments on loans generate income for banks, allowing them to lend more and contribute to a
cycle of economic prosperity.

Who regulates banks?

In India, the Reserve Bank of India (RBI) is the primary regulatory authority for banks,
overseeing their operations to ensure stability and integrity in the financial system.

How does RBI manage inflation in our country?

The RBI manages inflation by adjusting key policy rates and ratios, such as the Repo rate,
Reverse Repo rate, Cash Reserve Ratio (CRR), and Statutory Liquidity Ratio (SLR). By
increasing the Repo rate, the cost of borrowing for banks goes up, leading to higher lending
rates, which can reduce loan uptake and slow down money circulation, helping to control
inflation.

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IBPS PO interview Questions

Difference between CRR and SLR

CRR (Cash Reserve Ratio) is the percentage of a bank's total deposits that must be kept in
reserve with the RBI in cash form. SLR (Statutory Liquidity Ratio) is the percentage of total
deposits that a bank must maintain in the form of liquid assets such as cash, gold, or
government securities. Both are tools used by the RBI to control liquidity in the banking system.

Difference between Repo rate and bank rate

The Repo rate is the rate at which commercial banks borrow money from the RBI by selling their
securities to the central bank with an agreement to repurchase them at a fixed price. The Bank
rate, on the other hand, is the rate at which the RBI lends money to commercial banks without
any collateral. Typically, the Repo rate is lower than the Bank rate.

Current CRR, SLR, Repo Rate, bank rate, and Reverse Repo Rate: These rates are subject to
change based on the RBI's monetary policy decisions. Please refer to the latest RBI
announcements for the most current rates.

What are the different types of cheques?

1. Bearer Cheque

• Payable to the bearer or holder.

• Can be cashed by anyone who presents it at the bank.

• Less secure due to risk of loss or theft.

2. Order Cheque

• Payable only to the specified payee.

• Requires identification for cashing or depositing.

• More secure than bearer cheques.

3. Crossed Cheque

• Has two parallel lines on the top left corner.

• Cannot be encashed directly at the counter; must be deposited into a bank

• Enhances security by tracking the deposit.

4. Uncrossed/Open Cheque

• Can be encashed at the bank counter.

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IBPS PO interview Questions

• No crossing lines on the cheque.

• Less secure, as it is open for direct encashment.

5. Banker's Cheque (Bank Draft)

• Issued by the bank against its own funds.

• Guaranteed payment, often used for significant transactions.

• Valid for a specific period, usually more secure.

Different types of accounts in a bank

Common types of bank accounts include savings accounts, current accounts, fixed deposits
(FDs), and recurring deposits (RDs), each serving different needs for liquidity, savings, or
business transactions.

Savings Account:

• Designed for individuals to save money.

• Offers interest on deposits.

• Generally has no or low minimum balance requirements.

• Suitable for regular transactions, but with limitations on withdrawal frequency.

Current Account:

• Tailored for businesses and professionals for handling large transactions.

• Does not earn interest.

• Typically has higher minimum balance requirements than savings accounts.

• Offers facilities like overdraft.

Fixed Deposit Account (FD):

• Money is deposited for a fixed period.

• Offers higher interest rates compared to savings accounts.

• Early withdrawal may result in penalty or reduced interest.

• Suitable for long-term savings without the need for immediate access to funds.

Recurring Deposit Account (RD):

• Allows depositing a fixed amount monthly for a predetermined period.

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IBPS PO interview Questions

• Offers interest rates similar to FDs.

• Ideal for individuals aiming to save regularly for a specific goal.

• Penalty for missing installment payments may apply.

What is overdraft facility?

An overdraft facility is a credit agreement made with a bank that allows an account holder to
withdraw money beyond the available balance up to an approved limit. This facility is useful for
managing short-term cash flow issues.

Difference between RTGS and NEFT.

RTGS (Real Time Gross Settlement):

• Transfers are processed in real-time.

• Primarily for high-value transactions; minimum amount typically is ₹2,00,000.

• No upper limit on transaction amount.

• Operates during specific banking hours.

• Faster settlement, usually within 30 minutes.

• Suitable for urgent large-value fund transfers.

NEFT (National Electronic Funds Transfer):

• Batch processing of transactions at hourly intervals.

• No minimum limit, suitable for transactions of any amount.

• No maximum limit, but banks may impose their own caps.

• Available during extended banking hours and now 24x7 as per recent RBI guidelines.

• Can take a few hours for funds to be credited, depending on the timing of the batch.

• Ideal for non-urgent and small-value transactions.

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