Download INTERVIEW-1 ----------------- 1.What is the role of public sector

INTERVIEW-1
----------------1.What is the role of public sector organisation?
Ans:
1.
2.
3.
4.
5.
6.
7.
Maximizing the rate of economic growth
Development of capital-intensive
Development of agriculture
Increasing employment opportunities
Export promotion
Mobilization of resources
Research and development
2.What is cross selling?
Ans: The strategy of pushing new products to current customers based on their past
purchases. Cross-selling is designed to widen the customer's reliance on the company and
decrease the likelihood of the customer switching to a competitor.
3.What is bank rate?
Ans: Bank Rate is the rate at which central bank of the country (in India it is RBI) allows
finance to commercial banks. Bank Rate is a tool, which central bank uses for short-term
purposes. Any upward revision in Bank Rate by central bank is an indication that banks
should also increase deposit rates as well as Base Rate / Benchmark Prime Lending Rate.
Thus any revision in the Bank rate indicates that it is likely that interest rates on your deposits
are likely to either go up or go down, and it can also indicate an increase or decrease in your
EMI. If the bank rate goes up, long-term interest rates also tend to move up, and vice-versa.
Thus, it can said that in case bank rate is hiked, in all likelihood banks will hikes their own
lending rates to ensure that they continue to make profit.
4.What is Prime lending rate and sub-prime lending rate?
Ans: Sub-prime lending usually refers to the practice of giving loans to those who do not
qualify for regular loans at market interest rates because of their poor credit history. Due to
the increased risk associated with the takers, sub-prime loans are offered at a rate higher than
market rates. These loans are risky for both, those who are giving and those who are taking,
because these combine high interest rates, bad credit history.
5.What is base rate?What is present value?
Ans: The Base Rate is the minimum interest rate of a Bank below which it cannot lend,
except for DRI advances, loans to bank's own employees and loan to banks' depositors
against their own deposits. (i.e. cases allowed by RBI) . Remember, RBI does not fix the
base rate. It has issued broad guidelines to bank as to how they should arrive at the
base rate. Thus, individual bank itself fixes its own base rate.
Q> What is BPLR?
The BPLR is the interest rate that commercial banks charge their most credit-worthy
customers.According to the Reserve Bank of India banks are free to fix the Benchmark Prime
Lending Rate (BPLR) with the approval of their respective Boards. Banks are free to decide
the BPLR but their interest rates have to have a reference to the BPLR fixed.BPLR is many
times below its given rate bcz of customer priority.
6.Why RBI has introduced the concept of base rate?
Ans: Following the announcement in the Annual Policy Statement for the year 2009-10,
Reserve Bank of India constituted a Working Group on Benchmark Prime Lending Rate
(Chairman: Shri Deepak Mohanty) to review the present benchmark prime lending rate
(BPLR) system and suggest changes to make credit pricing more transparent. The Base Rate
system will replace the BPLR system with effect from July 1, 2010.
7.Is base rate same for all the banks?
Ans:No.It depends on individual bank.
8.What is CRR?What is present value?
Ans: CRR means Cash Reserve Ratio. 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 Reserve Bank of India (RBI) / currency
chests, which is considered as equivlanet to holding cash with RBI. This minimum ratio (that
is the part of the total deposits to be held as cash) is stipulated by the RBI and is known as
the CRR or Cash Reserve Ratio. Thus, When a bank’s deposits increase by Rs100, and if the
cash reserve ratio is 6%, the banks will have to hold additional Rs 6 with RBI and Bank will
be able to use only Rs 94 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. RBI can
prescribe Cash Reserve Ratio (CRR) for scheduled banks without any floor rate or ceiling
rate. [Before the enactment of this amendment, in terms of Section 42(1) of the RBI Act, the
Reserve Bank could prescribe CRR for scheduled banks between 3 per cent and 20 per cent
of total of their demand and time liabilities]. RBI uses CRR either to drain excess liquidity or
to release funds needed for the growth of the economy from time to time. Increase in CRR
means that banks have less funds available and money is sucked out of circulation. Thus we
can say that this serves duel purposes i.e.(a) ensures that a portion of bank deposits is kept
with RBI and is totally risk-free, (b) enables RBI to control liquidity in the system, and
thereby, inflation by tying the hands of the banks in lending money.
9.What is SLR rate?What is present value?
Ans: 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 securities to liabilities (deposits) It regulates the credit growth in
India. The ratio of liquid assets to demand and time liabilities is known as Statutory
Liquidity Ratio (SLR). RBI is empowered to increase this ratio up to 40%. An increase in
SLR also restrict the bank’s leverage position to pump more money into the economy. SLR
cut by 1% to 23%. No change in Repo / Reverse Repo / MSF / Bank Rate.- 1st Quarter
Review of Monetary Policy 2012-13
10.What are negotiable instruments?
Ans: A transferable, signed document that promises to pay the bearer a sum of money at a
future date or on demand. Examples include checks, bills of exchange, and promissory notes.
INTERVIEW-2
----------11.What is the difference between cheque and draft?
12.What are the functions of Reserve bank of india?
13.What are the supervisory functions of RBI?
14.Tell about recent budget?
15.Allocation of funds to banks and NABARD in the budget.
16.What is service tax?What is excise duty and custom duty?
17.Is draft a negotiable instrument?
18.Difference between base rate and PLR?
19.Difference between bank rate and repo rate?
20.How would u double the business of my bank?
INTERVIEW-3
----------21.Which bank u will join if get all the joining on the same date?
22.What are the risks for bank?
23.What are different types of accounts exist in banks?
24.What are deposits?
25.Why do bank take deposits from public?
26.What is AML?
27.What is KYC?
28.About Bank’S History and Its Capital.
29.What is CAR?
30.What is Tier 1 & Tier 2 Capital, Core Capital?
INTERVIEW-4
----------31.Fdi and Fdi In Rtail Sector.
32.What is Fund Flow & Cash Flow Statement?
33.What is Depreciation?
34.What is Reserves.Why We Create Them?
35.What is Paid Up Share Capital?
36.Diff B/W Public Sector & Private Sector banks?
37.Tell about Planning Commission?
38.What is NPA?
39.What is Gross Profit & Net Profit?
40.What is double entry system?
INTERVIEW-5
----------41.what is security ?
42.What is recission?
43.What is NABARD?Does it give loans to RRB?
44.What is SIDBI?
45.Why Rupees was Decreasing against Dollar?
46.Say something about FDI?
47.To whom loan can be given by bank?
48.what is the procedure of giving loan?
49.How can rbi control rupee depreciation?
50.What is CBS AND ATM?
INTERVIEW-6
----------51.What is the ceiling om micro finance institutions and what is micro finance institution?
52.what is pay back period?
53.Do you know IRR and How to relate irr?
54.What is commercial banking?
55.Tell me about Current Indian Banking System Scenario.
56.What is bank?
57.What is International Trade?
58.What is Foreign Exchange Reserve?
59.How much Forex India has and who is custodian of Forex?
60.Export and Import comes under which account?
INTERVIEW-7
----------61.What are different kind of banks exist in india?
62.What is Current Account convertibility?
63.What is Balance of Payment?
64.What is Balance of Trade?
65.What is Fiscal Deficit?How Fiscal Deficit is fulfilled by Govt?
66.What is Money Laundering and how RBI and Government take preventive measures to
stop it?
67.What is Bank Overdraft?
68.What is Corporate Debt Restructuring?
69.What is Corporate Debt Rescheduling?
70.What is Dishonour of Cheque?
INTERVIEW-8
----------71.What are the different kind of NRI accounts?
72.Tell 3 most freely tradable currencies in the World?
73.What is a Cheque?What is DD?What is difference b/w DD and Cheque?
74.Tell us if a cheque is dishonoured then what are the measures to do?
75.What is Personal banking and corporate banking?
76.what do you understand by Nationalisation of Banks?
77.What is Financial Inclusion?
78.Can bank lend below base rate in any situation?
79.Can bank lend below base rate to exporters in any situation?
80.What would be effect on exporters if USD increases?
INTERVIEW-9
----------81.What is bankassurance?
82.Which is-the largest bank in India?
83.What are LIBOR and SIBOR?
LIBOR is London Inter-Bank Offered Rate while SIBOR is Singapore Inter-Bank Offered
Rate.
84.Why the banks were nationalized?Did it make a difference?
85. Which city is called the commercial capital of India?
86.Who is the Governor and deputy governor of RBI now?
87.should we save money and put it in the bank when everybody knows that value of money
is decreasing day by day as prices of Goods and services are increasing.
88.What changes do you think have come about in banking during the last two decades or so?
89.What is SEBI?
90.What is CAMELS?
INTERVIEW-10
-----------91.WHAT IS MONEY MARKET?
92.What is Treasury Bills?
93.What is Commercial Papers and Certificates of Deposits?
94.What is bankers acceptance?
95.WHAT DO YOU UNDERSTAND BY CAPITAL ADEQUACY RATIO,CRAR,BASEL
II AND III?
96.WHAT DO YOUR UNDERSTAND BY MERCHANT BANKING IN SIMPLE
LANGUAGE WITH EXAMPLES?
97.WHAT IS SARFAESI ACT 2002. HOW IS IT USEFUL TO BANKS?
98.WHAT DO U UNDERSTAND BY FINANCIAL INCLUSION AND INCLUSIVE
GROWTH IN TERMS OF BANKING? EXPLAIN IN YOUR OWN SIMPLE LANGUAGE.
99.WHAT IS DEFINITION OF BANK RATE, REPO RATE, REVERSE REPO RATE,
CRR AND SLR? KINDLY STATE PRESENT RATES OF THESE.
100.WHICH IS MORE IMPORTANT CUSTOMER OR ENTREPRENEUR? HOW DOES
BANK EARN PROFIT FROM BOTH?
INTERVIEW-11
-----------101.WHAT SIGNIFICANT TRENDS DO YOU SEE IN FUTURE FOR BANKING
SECTOR?
102.What is e-banking and m-banking?
103.What is cash management bills?
104.What is bank asset and liabilities?
105.What is current bank a/c and saving bank a/c?
106.What is fixed deposit a/c and recurring deposit bank a/c?
107.Difference between credit and debit card?
108.What is bearer cheque,order cheque,uncrossed/open cheque,crossed cheque,anti dated
cheque,post dated cheque and stale cheque?
109.What is dishonouring of cheque?
110.What is crossing of cheque?
INTERVIEW-12
-----------111.what is paperless banking, green banking?
112.What are the different type of deposits and a/c?
113.Have you used online banking and how?
114. What are Repo rate and Reverse Repo rate?
Ans: Repo (Repurchase) rate is the rate at which the RBI lends shot-term money to the
banks against securities. When the repo rate increases borrowing from RBI becomes more
expensive. Therefore, we can say that in case, RBI wants to make it more expensive for the
banks to borrow money, it increases the repo rate; similarly, if it wants to make it cheaper for
banks to borrow money, it reduces the repo rate.
Reverse Repo rate is the rate at which banks park their short-term excess liquidity with the
RBI. The banks use this tool when they feel that they are stuck with excess funds and are not
able to invest anywhere for reasonable returns. An increase in the reverse repo rate means
that the RBI is ready to borrow money from the banks at a higher rate of interest. As a result,
banks would prefer to keep more and more surplus funds with RBI.
Thus, we can conclude that Repo Rate signifies the rate at which liquidity is injected in the
banking system by RBI, whereas Reverse repo rate signifies the rate at which the central bank
absorbs liquidity from the banks.
The policy announcements on 03/05/2011, indicates that now repo rate has become the
only independent variable policy rate, marking a shift from earlier method of
calibrating various policy rates separately. The reverse repo rate -- the rate at which
RBI borrows – will be kept 100 basis points lower than the repo rate. On the other hand
Marginal Standing Facility (MSF) rate will be kept 100 basis points higher than the
repo rate.
INTERVIEW-4
----------31.Fdi and Fdi In Retail Sector.
Ans: FDI provides an inflow of foreign capital and funds,investment in addition to an
increase in the transfer of skills, technology, and job opportunities. Foreign Investment in
India is announced by Govt. of India named as FEMA(Foreign Exchange Management Act).
32.What is Fund Flow & Cash Flow Statement?
Ans:
Cash Flow Statement : Statement showing changes in inflow & outflow of cash during the
period.
Funds Flow Statement :Statement showing the source & application of funds during the
period.
33.What is Depreciation?
Ans: A method of allocating the cost of a tangible asset over its useful life. A decrease in an
asset’s value caused by unfavorable market conditions.
34.What is Reserves.Why We Create Them?
Ans:
1.) To serve as a source of cash for daily business operations.
2.) For cash withdrawals from clients.
3.) To pay the debt defaults of the bank or for clients to pay their debt defaults.
Fractional-reserve banking is a form of banking where a bank maintains "reserves" (of
currency and deposits at the central bank) that are a fraction of the total amount of its
customers' deposits. Funds deposited at a bank are mostly lent out; the bank keeps only a
fraction (called the reserve ratio) of those funds as reserves to cover its customer deposit
liabilities. Some of the funds lent out are subsequently deposited with another bank,
increasing the reserves and deposit liabilities of that second bank, and allowing further
lending. As most bank deposits are treated as money in their own right, fractional reserve
banking increases the money supply, and banks are said to create money.
35.What is Paid Up Share Capital?
Ans: Paid-up capital is money that a company has received from the sale of its shares, and
represents money that is not borrowed. A company that is fully paid-up has sold all available
shares, and thus cannot increase its capital unless it borrows money through debt or is
authorized to sell more shares.
36.Diff B/W Public Sector & Private Sector banks?
Ans: A private cector is an economy is made up af all businesses and firms owned by
ordinary members of the general public whereas, public sector is an economy is owned and
controlled by a government . Government share in public sector bank : 49%.
37.Tell about Planning Commission?
Ans: It was set up by the Union government to promote a rapid rise in the standard of living
of the Indian people by efficient exploitation of national resources, increasing production and
offering opportunities to all for employment in the service of the community. The prime
minister is the chairman of the Planning Commission, but the Commission is actually run by
the deputy chairman (who enjoys the rank of Cabinet minister or minister of state.) Montek
Singh Ahluwalia , deputy chairman of the Planning Commission.
38.What is NPA?
Ans: Non-Performing Assets are popularly known as NPA. Commercial Banks assets are of
various types.
All those assets which generate periodical income are called as Performing Assets (PA).
While all those assets which do not generate periodical income are called as Non-Performing
Assets (NPA).
If the customers do not repay principal amount and interest for a certain period of time then
such loans become non-performing assets (NPA). Thus non-performing assets are basically
non-performing loans.
In India, the time frame given for classifying the asset as NPA is 180 days as compared to 45
days to 90 days of international norms.
39.What is Gross Profit & Net Profit?
Ans: gross profit is the the total amount you get after selling an item before you subtract the
total expenses or costs occured. net profit is the gross profit minus expenses.
40.What is double entry system?
Ans: Each business transaction affect the Accounting elements in at least two ways , that is
Debit and Credit, and this process of recording transaction is called Double Entry System.
INTERVIEW-5
----------41.what is security ?
42.What is recission?
43.What is NABARD?Does it give loans to RRB?
44.What is SIDBI?
45.Why Rupees was Decreasing against Dollar?
46.Say something about FDI?
47.To whom loan can be given by bank?
48.what is the procedure of giving loan?
49.How can rbi control rupee depreciation?
50.What is CBS AND ATM?
INTERVIEW-6
----------51.What is the ceiling om micro finance institutions and what is micro finance institution?
52.what is pay back period?
53.Do you know IRR and How to relate irr?
54.What is commercial banking?
55.Tell me about Current Indian Banking System Scenario.
56.What is bank?
57.What is International Trade?
58.What is Foreign Exchange Reserve?
59.How much Forex India has and who is custodian of Forex?
60.Export and Import comes under which account?
INTERVIEW-7
----------61.What are different kind of banks exist in india?
62.What is Current Account convertibility?
63.What is Balance of Payment?
64.What is Balance of Trade?
65.What is Fiscal Deficit?How Fiscal Deficit is fulfilled by Govt?
66.What is Money Laundering and how RBI and Government take preventive measures to
stop it?
67.What is Bank Overdraft?
68.What is Corporate Debt Restructuring?
69.What is Corporate Debt Rescheduling?
70.What is Dishonour of Cheque?
INTERVIEW-8
----------71.What are the different kind of NRI accounts?
72.Tell 3 most freely tradable currencies in the World?
73.What is a Cheque?What is DD?What is difference b/w DD and Cheque?
74.Tell us if a cheque is dishonoured then what are the measures to do?
75.What is Personal banking and corporate banking?
76.what do you understand by Nationalisation of Banks?
77.What is Financial Inclusion?
78.Can bank lend below base rate in any situation?
79.Can bank lend below base rate to exporters in any situation?
80.What would be effect on exporters if USD increases?
INTERVIEW-9
----------81.What is bankassurance?
82.Which is-the largest bank in India?
83.What are LIBOR and SIBOR?
LIBOR is London Inter-Bank Offered Rate while SIBOR is Singapore Inter-Bank Offered
Rate.
84.Why the banks were nationalized?Did it make a difference?
85. Which city is called the commercial capital of India?
86.Who is the Governor and deputy governor of RBI now?
87.should we save money and put it in the bank when everybody knows that value of money
is decreasing day by day as prices of Goods and services are increasing.
88.What changes do you think have come about in banking during the last two decades or so?
89.What is SEBI?
90.What is CAMELS?
INTERVIEW-10
-----------91.WHAT IS MONEY MARKET?
92.What is Treasury Bills?
93.What is Commercial Papers and Certificates of Deposits?
94.What is bankers acceptance?
95.WHAT DO YOU UNDERSTAND BY CAPITAL ADEQUACY RATIO,CRAR,BASEL
II AND III?
96.WHAT DO YOUR UNDERSTAND BY MERCHANT BANKING IN SIMPLE
LANGUAGE WITH EXAMPLES?
97.WHAT IS SARFAESI ACT 2002. HOW IS IT USEFUL TO BANKS?
98.WHAT DO U UNDERSTAND BY FINANCIAL INCLUSION AND INCLUSIVE
GROWTH IN TERMS OF BANKING? EXPLAIN IN YOUR OWN SIMPLE LANGUAGE.
99.WHAT IS DEFINITION OF BANK RATE, REPO RATE, REVERSE REPO RATE,
CRR AND SLR? KINDLY STATE PRESENT RATES OF THESE.
100.WHICH IS MORE IMPORTANT CUSTOMER OR ENTREPRENEUR? HOW DOES
BANK EARN PROFIT FROM BOTH?
INTERVIEW-11
-----------101.WHAT SIGNIFICANT TRENDS DO YOU SEE IN FUTURE FOR BANKING
SECTOR?
102.What is e-banking and m-banking?
103.What is cash management bills?
104.What is bank asset and liabilities?
105.What is current bank a/c and saving bank a/c?
106.What is fixed deposit a/c and recurring deposit bank a/c?
107.Difference between credit and debit card?
108.What is bearer cheque,order cheque,uncrossed/open cheque,crossed cheque,anti dated
cheque,post dated cheque and stale cheque?
109.What is dishonouring of cheque?
110.What is crossing of cheque?
INTERVIEW-12
-----------111.what is paperless banking, green banking?
112.What are the different type of deposits and a/c?
113.Have you used online banking and how?
114. What are Repo rate and Reverse Repo rate?
Ans: Repo (Repurchase) rate is the rate at which the RBI lends shot-term money to the
banks against securities. When the repo rate increases borrowing from RBI becomes more
expensive. Therefore, we can say that in case, RBI wants to make it more expensive for the
banks to borrow money, it increases the repo rate; similarly, if it wants to make it cheaper for
banks to borrow money, it reduces the repo rate.
Reverse Repo rate is the rate at which banks park their short-term excess liquidity with the
RBI. The banks use this tool when they feel that they are stuck with excess funds and are not
able to invest anywhere for reasonable returns. An increase in the reverse repo rate means
that the RBI is ready to borrow money from the banks at a higher rate of interest. As a result,
banks would prefer to keep more and more surplus funds with RBI.
Thus, we can conclude that Repo Rate signifies the rate at which liquidity is injected in the
banking system by RBI, whereas Reverse repo rate signifies the rate at which the central bank
absorbs liquidity from the banks.
The policy announcements on 03/05/2011, indicates that now repo rate has become the
only independent variable policy rate, marking a shift from earlier method of
calibrating various policy rates separately. The reverse repo rate -- the rate at which
RBI borrows – will be kept 100 basis points lower than the repo rate. On the other hand
Marginal Standing Facility (MSF) rate will be kept 100 basis points higher than the
repo rate.
INTERVIEW-2
----------11.What is the difference between cheque and draft?
A cheque is issued by a person from his personal account. The bank will not honour the
cheque if sufficient
balance is not there in your account
But A demand draft is issued by a bank only when the amount of draft plus commission has
been paid to bank upfront and in this case the payment against the bank draft is gurrantteed
by the issuing bank. The bank draft is as good as cash.
DD is signed by banker and a cheque is signed by account holder. DD is banker's cheque.
1. Meaning
A cheque is an unconditional order directing the banker to pay a certain sum of money only
to or to the order of a certain person.
A draft is an order to pay money drawn by one office of a bank upon another office of the
same bank for a sum of money payable to order on demand.
2. Facility
The current account and saving account holders get a cheque facility.
Draft is issued to anyone even to non-account holders.
3. Purpose
Cheques are used to make payments or to settle transactions. There is no certainty of payment
in the case of cheques as they can be dishonoured or payment can be stopped.
The main purpose of a draft is to transfer money from one place to another or to guarantee the
certainty of payment to the payee.
4. Drawer
In case of cheque, the drawer is the customer of the bank.
In case of draft, the drawer is the bank itself.
5. Bank charges
The bank may not charge for issuing the cheque book.
The bank charges a nominal fee or commission to issue a draft.
6. Dishonour
Cheques can be dishonoured for various reasons.
There is no question of dishonouring of draft.
7. Stopping of payment
In case of cheque, the drawer can ask the bank to stop payment of the cheque even if it is
delivered to the payee.
In case of draft, the purchaser of the draft can ask the bank to stop payment before the draft is
delivered to the payee.
8. Popularity
Cheques are very common and popular mode of payment.
Drafts do not enjoy much popularity as compared to cheques.
9. Clearance
In case of cheque, there is a need for clearance.
In case of a draft, there is no need for clearance, if DD is drawn on the same bank.
10. Parties involved
Three parties are involved in cheque transaction viz., (a) Drawer, (b) Drawee, and (c) Payee.
Two parties are involved in draft transaction viz., (a) Drawer, and (b) Payee.
some questions related to sbi clerk interview.
1
2
3
4
5
6
7
name of the chairman & MDs of sbi?
how many board of directors in sbi...& who is the representative of rbi?
what are the reasons of banking strikes?
what is the logo of sbi & explain it? on the basis of colours & logo shape
what is the diffrence between sbi & other nationalized banks?
Inflation on the basis of CPI & WPI
WHY banks pay more emphasis on CASA deposits?
8 difference between microcredit & microfinance & microcredit?
9 what is RSETI ?
10 Teaser loans ?
11 bank's tagline?
12 what is ultra small branch ?
13 what is RuPay card ?
14 what is islamic banking ?
15 definition of bank ?
16 12th 5 year plan is based on which model ?
17 name the 5 associate banks of sbi ?
18 what are the subsidiaries of sbi ?
19 SbI sponsors how many RRbs ?
20 SbIs financial data as on 30-06-2012 of
a net deposit ?
b total advance ?
c CAR ?
d nET npa ?
e % profit ?
M1- ECE means?
I- It is Electronics and Communication Engineering.
M1- you completed your graduation in 2010. So what have you done after that and what are you doing
presently?
I- sir, after graduation I worked in a telecom company as technical engineer for about six months. Due to
some reasons the company was closed. I was not satisfied with the job offered in the same field and
decided to go for govt. sector and I chose banking.
M1- so as you have been preparing since about last one and half year, you should know about banks. First
he explained the type of banks viz. central bank, commercial bank, RRBs, cooperative bank etc. and then
asked what is a bank?
I- sir a bank is a financial institution which deals in activities like accepting deposit, lending money, foreign
exchange activity, online trading , funds transfer etc.
M1- do you know that Indian financial system include banks, insurance companies and other financial
institute.
I- yes sir.
M1- so what does an insurance company do?
I- sir an insurance company provides guarantee of compensation (M1 interrupted)
M1- just tell some type of policy?
I- Life insurance, health insurance (again interrupted)
M1- do you know any insurance companies name?
I- LIC, BAJAJ Alliances, Max New York life insurance.
M1- what do think about the current economic condition of India?
I- sir according to me India’s economy is not at a very good condition right now although it’s not bad too.
High inflation rate, increasing deficit, low GDP growth are causing Indian economy to slow down.
M1- do you know about financial crisis?
I- I started with euro zone crisis and even could not complete the first sentence and he stopped me.
M1- Tell about Global financial Crisis?
I- world faced global financial crisis during 2008. The main reason to this is sub prime lending.
Because of this many banks failed. (M1 interrupted)
M1- what is subprime lending?
I- when a bank offers loan to a customer who can have difficulty in repayment at a higher interest rate
knowing that there is greater risk.
M1- as you know there were many banks in America which failed due to global financial crisis. If you know
the name of any bank which failed? No matter if you don’t know
I- sir I don’t know the name of the bank which failed but some bank like bank of America and Citibank
could exist only because of bailout packages provided by the govt.
Then Male1 indicated male2 to continue
M2- what was the impact of this crisis on Indian banks?
I- sir Indian banks were not so much affected by this? (M2 interrupted)
M2- what do you think why they were not affected so much?
I- sir because of strict guidelines and regulations of RBI like maintaining Capital Adequacy Ratio, SLR, CRR
etc. banks in India did not have to ask for any help of govt.
M2- what is the capital of a bank?
I- a bank’s capital include the bonds with govt., property held by it, shares in different firms, gold etc.
M2- you are not from commerce background. Isn’t it?
(Male1 told him that I am from science background.)
M2- you would have told another definition if you were.(and they both laughed)
M2- what are the functions of RBI?
I- sir RBI’s main functions are Monetary Policy, Issue currency, regulate and supervise banks, banker of
banks, banker and debt manager of central and state govt., foreign exchange management, developmental
role etc.
M2- last one from my side. What is monetary policy?
I- sir, monetary policy include credit control, financial stability and inflation control. For this RBI regularly
makes rules…… (M2 interrupted)
M2- sorry but one more question. (I said its ok sir)
M2- what is financial stability?
I- financial stability means dealing the funds to maintain with the earnings and expenditure. (M1
interrupted and told me that now a days market instability is financial stability.)(they all laughed and I
maintained a smile)
M1 indicated Female member to continue.
F- I will not ask many questions to you.
F- Do you know that the notes are printed in printing press? There are some such presses in India. Who
permits them to print?
I- RBI
F- There is also a printing press in MP. Do you know where?
I- yes ma’am, it is in Dewas.
F- have you visited that press?
I- no ma’am I haven’t visited Dewas.
(M2 to Female member- if he has never visited so how would he visit the press)
F- In which denomination notes are printed now?
I- In Dewas press 20, 50, (she interrupted)
F- Not of Dewas press, tell about all denominations?
I- currently denominations of rupees 5, 10, 20, 50, 100, 500, 1000 are printed.
They all smiled, wished me all the best and asked me to go.
I thanked them with smile and left the room.