Interview Questions.

Latest Modern Banking question papers, test pattern and Placement papers

fluid

Latest Modern Banking question papers, test pattern and Placement papers

Q1. What Are The Objectives Of Assurance Are Organized In Life Insurance Corporation Of India?

Life Insurance Corporation of India become organised with the objectives of guarantee of

a) Family safety

b) Provision for antique age

c) Tax concession

d) Housing lo

e) Lo superior for instructional functions and

f) Donation to charitable establishments

Q2. Define Money Market And Features Of Money Market?

According to Crowther, “Money marketplace is a collective name given to diverse companies and institutions that deal within the various grades of close to cash”. Features of Money Market:

• Money marketplace is worried with the borrowing and lending of quick-term funds only.

• For the borrowing and lending budget, it isn't essential that the borrower and the lender have to meet every different head to head at a particular area. They can keep on negotiations and impact their financial tractions via phone, telegram, mail or another me of conversation.

• A cash market isn't always a unmarried homogeneous market. It consists of several specialised sub-markets, together with call marketplace, treasury invoice market, cut price market, collateral mortgage market, and so forth.

• As in every other marketplace, inside the cash market additionally, there may be a rate for the money borrowed and lent. That rate is referred to as interest.

• There are a big variety of borrowers and creditors in the money market.

• A massive extent of brief-time period finances is traded in cash marketplace.

• Money marketplace is the source of running capital finance. It is the predominant of working capital finance.

Q3. What Is Indian Banking Companies Act?

Banking Company is one which tracts the enterprise of banking which me the accepting for the reason of lending or investment of deposits cash from the public repayable on call for or otherwise and withdrawable by way of cheque, draft, order or in any other case”. . Dictionary which means of the Word ‘Bank’ -The oxford dictionary defines a bank as “an established order for custody of cash obtained from or on behalf of its customers. It’s vital duty is to pay their drafts on it. It’s earnings arises from using the cash left hired by using them.

Q4. What Are The Neft Advantages To The Customers Over The Other Modes Of Funds Trfer?

NEFT offers many blessings to the customers over the alternative modes of funds trfer as indexed below: 

•The remitter need now not send the bodily Cheque or Demand Draft to the beneficiary. 

•The beneficiary want not go to his/her financial institution for depositing the paper gadgets. 

•The beneficiary want not be nervous of loss/theft of physical gadgets or the likelihood of fraudulent encashment thereof. 

•Cost powerful. 

•Credit confirmation of the remittances despatched with the aid of SMS or email. 

• Remitter can provoke the remittances from his home/place of business the use of the internet banking additionally. 

• Near real time trfer of the price range to the beneficiary account in a secure way.

Q5. What Are The Features Or Deficiencies Of Indian Money Market?

Indian money marketplace is notably underdeveloped whilst compared with superior markets like New York and London Money Markets. Its' foremost features / defects are as follows

I. Dichotomy

II. Lack of Co-ordination and Integration

III. Diversity in Interest Rates

IV. Seasonality of Money Market

V. Shortage of Funds

VI. Absence of Organized Bill Market

VII. Inadequate Banking Facilities

VIII. Inefficient And Corrupt Management

Q6. What Is Commercial Banking Structure?

The structure of baking is also known as company of baking. It differs from country to another u . S . A ., depending upon financial and political situations. Over the years, the structure of banking also has gone through superb changes. The following are the several structures of banking.

• Unit Banking

• Branch Banking

• Group Banking

• Chain Banks

• Correspondent Banking System

Q7. What Is E-purse?

An electronic purse is the store of cost on a card, which can be used in a way similar to coins to pay for tour or for different small-scale tractions. Electronic purse is the secure records saved in a committed area or report of a clever-card. The fee is placed on the cardboard in one in all three ways: 

(i) Preloaded on to the cardboard (inside the equal way as telephone cards), without the opportunity to feature similarly value. The intention is that the card is discarded whilst the fee is expired,

(ii) Added to the card on the time the card is issued, or when the e-purse application is added to an present card, and 

(iii) Additional price delivered to an current e-handbag or pinnacle-up

Q8. What Are Resources Of Ifci?

The shareholder of Industrial Finance Corporation of India are the IDBI (previously these proportion had been held with the aid of the Reserve Bank and the Central Government) and banking and other financial establishments, the assets of the companies include its percentage capital and reserve, public deposits, advances from Reserve Bank of India, the arena Bank and other worldwide businesses and bonds and debentures issued within the open marketplace.

Q9. What Are The Features Of Risk Management?

A) Risk management is a scientific method to the hassle of dealing with most effective natural risks and now not any other dangers faced by an individual or business.

B) Risk management offers significance to insurable and uninsurable dangers and to me suitable strategies for problems dealing with all natural risks.

C) It particularly emphasizes reducing the value of managing threat via the use of appropriate techniques.

 

Q10. What Are The Types Of Baks?

There are numerous kinds of banks which function in our usa to satisfy the economic necessities of different classes of human beings engaged in agriculture, commercial enterprise, career and so on. Banks may be categorized into diverse types on the bases of their functions, possession, abode, and so forth.

Classification at the Basis of functions:

• Central Bank

• Commercial Banks

• Industrial Banks

• Agricultural Banks

• Specialized Banks

• Exchange Banks

• Savings Bank

• World Bank

Classification at the Basis of Ownership:

• Public Sector Banks

• Private Sector Banks

• Co-operative Banks

Classification on the basis of Domicile

• Domestic banks

• Foreign banks

Q11. What Are The Disadvantages Of Branch Banking?

I) Difficulty in control, supervision and control: If the expion of the branches go past a limit, the administration of branches, supervision of the activities of the branches become hard. Under expion consequences in inefficient management. This additionally creates purple tape, undue put off in selection and in movement. For each and the whole lot the branch managers searching for route from the superior officials. Ultimately, the board of management is bothered with now not simplest decision-taking but additionally its everyday management.

Ii) Possibility of monopoly: Under department banking, there is continually the opportunity of large banks to emerge as monopolies. Emergence of monopoly in banks proves unfavourable to the bigger interest of the country.

Iii) Unnecessary competition: The branches of competing banks tempt clients via providing special offerings and a few concession. This naturally will increase the expenditure of banks. Unhealthy opposition may also bring about the lowering of profitability.

Iv) Expensiveness: Branch banking is enormously high priced. Maintenance of branches with numerous officials and supervisors for control could be very steeply-priced. They also nave spend extensive sums of cash for advertisement. All these lead greater costs. The value of control additionally turns into prohibitive.

V) Continuance of non-profitable branches: The branches in many enterprise locations may fit profitably, however the branches in residential localities and rural places may not get sufficient worthwhile commercial enterprise. As a end result, the top office of the financial institution has to run non-worthwhile branches forcibly.

Vi) Savings of rural places are trferred to city locations for investments: Normally, the excess of deposits mobilized in rural branches are trferred to branches in large towns for investment. Investment possibilities are denied within the rural areas. Banks take into account that investment of budget in bigger towns and cities are extra profitable than in smaller locations and backward areas. This hinders monetary development of backward regions.

Q12. What Are The Functions Of Rbi?

The features of Reserve Bank of India (RBI) cab be extensively classified into to as follows:

1) Monetary Functions:

a) Bank of Note Issue

b) Currency Chest

c) Banker to Government

d) Bankers Bank

e) Lender of the Last Resort

f) Banker, Agent & Adviser to the Government

g) Custodian of the Cash Reserves of Commercial Banks

h) Custodian of Foreign Balances of the Country

i) Controller of Credit

2) Non-Monetary Functions:

a) Supervisory Functions

b) Promotional Functions

Q13. What Are Functions Of Ifci?

The organization performs three crucial functions;

• It offers lo and advances to commercial concerns. It presents each rupee lo and overseas currency lo.

• It ensures lo raised by means of the commercial concerns in the marketplace.

• It underwrites the problem of shares, shares, bonds, debentures of industrial worries supplied such shares, stocks etc., are disposed of by way of the organisation within a length of seven years from the time of acquisition. It also subscribes to the fairness and preference shares and debentures of agencies. In latest years, IFCI assists commercial gadgets underneath the system leasing scheme.

Q14. What Are The Advantages Of Unit Banking?

I) Local hobby: The unit financial institution serves the locality plenty higher than the department bank. It is because the control board of the unit financial institution can soak up the selection on the spot itself. The neighborhood officers, who are permanent officers, can take essential action with out anticipating facts from the pinnacle workplace.

Ii) Convenience of control, supervision and control: The length of the financial institution is very small, its management, supervision and control are very smooth. Along with this, wastage and postpone, that are inherent weakness of department banking, may be conquer in unit banking

iii) Check on the formation of monopolies: There is a bank for each locality. In this system, there may be scope for opposition best. Hence, there may be no possibility of the increase of monopolies.

Iv) Quick banking offerings: The offerings in unit banking are usually quick, due to the fact the unit financial institution need not wait for guidelines from the principal office. There is no put off in taking any choice regarding banking issues.

V) Initiative in business: The duty of improvement of banking lies with the bank itself. Therefore, the bank officer takes non-public initiative on enhancing the business of the bank. Since the officials are nicely acquainted with the local problems, they can take the initiative in fixing issues and taking decisions on diverse issues confronting the bank. This makes the banking system extra elastic than what it's miles beneath the department banking machine.

Vi) Upholding the local interest: The unit banks, in principle, are inquisitive about upholding the nearby hobby. The unit banks are specifically inquisitive about the development of industries and agriculture maintaining in view the local necessities.

Vii) Other advantages: Since the unit banks are small when compared to the department bank, any loss does now not motive extreme havoc to the credit score shape of the usa. Since the affairs of the banks are less scattered, there can not be much of fraud and irregularities. Unit banking is unfastened from diseconomies of huge scale operations which can be generally related to department banking.

 

Q15. What Is Life Insurance?

Life Insurance is a agreement providing for payment of a amount of money to the individual assured or the person entitled to get hold of the same on the taking place of certain events, commonly demise life insurance is defined as a mutual settlement via which one birthday celebration consents to pay a given amount of money upon the taking place of a particular event contingent upon the period of human lifestyles, in consideration of the fee of a smaller sum right now, or in periodical bills via the alternative party.

Q16. What Is Money Market Mutual Funds (mmmfs)?

A Scheme of MMMFs became brought by way of RBI in 199@The purpose become to provide an additional quick-term road to man or woman traders. In November 1995 RBI made the scheme greater bendy. The existing pointers permit banks, public financial establishments and additionally personal quarter establishments to installation MMMFs. The ceiling of Rs. 50 crores on the scale of MMMFs stipulated in advance, has been withdrawn.

MMMFs are allowed to trouble gadgets to corporate organisations and others on par with different mutual price range. Resources mobilised by means of MMMFs are actually required to be invested in call money, CD, CPs, Commercial Bills arising out of actual trade tractions, treasury payments and authorities dated securities having an unexpired adulthood as much as 365 days. Since March 7, 2000 MMMFs were delivered beneath the purview of SEBI rules.

Q17.

The principles of risk coverage control introduced out with the aid of the subsequent:

(1) Principles of Risk Identification

(2) Principles of Risk Analysis

(3) Principles of Risk Assessment

(four) Principles of Taking Corrective Decision

(5) Principles of Evaluation

(6) Principles of Alternative Course of Action

(7) Principles of Risk Control

(8) Principles of Risk Retention

(nine) Principles of Risk Trfer

Q18. What Is Mixed Banking?

Mixed banking is that machine of banking beneath which the economic banks perform the twin feature of commercial banking and investment banking, i.E., it combines deposit and lending pastime with investment banking. Commercial banks generally provide both brief-term as well as medium term lo. The German banking device is the great instance of blended Banking in which banks are authorised besides, lending hobby, investment functioning also.

Q19. What Are The Functions Of The Sfc?

All kinds of industrial issues can get accommodation from SFCs and in this experience the scope of activities of nation businesses is wider than that of (IFCI). SFCs can:

• Guarantee lo raised with the aid of industrial concerns which can be repayable within a duration not exceeding twenty years and that are floated within the market.

• Underwrite the issue of shares, stocks, bonds pr debentures of business concerns;

• Grant lo or advances to business issues repayable inside a duration no longer exceeding 20 yr; and

• Subscribe to debenture floated by business worries. 

Q20. What Are Commercial Banks?

The Banks which perform all types of banking enterprise and commonly finance trade and trade are referred to as business banks. Since, their deposits are for a quick duration, these banks normally advance short time period lo to businessmen and investors and keep away from medium and long time and long term lending.

Q21. What Are The Types Of Insurance Organization?

The Insurance agency evolved in exclusive paperwork with the blessings of insurance practices. Some of the paperwork are

• Self Insurance

• Individual Insurer

• Partnership

• Joint Stock Companies

• Mutual Companies

• Co-operative Insurance Organization

• Lloyd’s Association

• State Insurance




CFG