Interview Questions.

Top 100+ Banking Operations Interview Questions And Answers

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Top 100+ Banking Operations Interview Questions And Answers

Question 1. Name Some Negotiable Instruments.?

Answer :

The negotiable units include: 

promissory observe
invoice of lading
Bank draft/ pay order/bankers cheque.
Railway receipts
Dock warrant
Warehouse receipt
Certificate of deposit
Commercial paper
Treasury payments
Hundi
Question 2. What Are The Features Of Negotiability?

Answer :

Features of Negotiability:

Freely transferable with the aid of delivery (while it's miles bearer).
Freely transferable through endorsement (when it's far an order tool).
The transferee taking the tool in exact faith.
Accounts and Finance for Managers Interview Questions
Question three. What Is Promissory Note (pn)?

Answer :

It’s an instrument in writing which includes an unconditional mission signed by means of the maker to pay a positive sum of money to the order or the bearer of instrument. The Promissory Notes require being stamped advert in keeping with Indian Stamp Act.

Question 4. How Many Types Of Promissory Notes Are There?

Answer :

Types of Promissory Note:

Demand Promissory Note
Usance Promissory Note
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Question five. What Is Demand Promissory Note?

Answer :

The Promissory Note that's payable without delay on demand is referred to as “Demand Promissory Note”.

Modern Banking Interview Questions
Question 6. What Is Usance Promissory Note?

Answer :

The Promissory Note which is payable after a predefined exact length is referred to as “Usance Promissory Note”.

Question 7. How Many Parties Are Required In Promissory Notes?

Answer :

Basically it requires two parties. The one is maker who guarantees to pay and the other is payee to whom it is payable. For example someone take mortgage from the bank then the “individual” is the “maker” and “the bank” is “payee”.

The Mystery of Banking Tutorial Banking Supervision Interview Questions
Question 8. What Is “bill Of Exchange” (boe)?

Answer :

It’s an tool containing an unconditional order signed through the maker directing a certain character to pay a positive sum of quantity simplest to the bearer of that device.

Question 9. How Many Types Of Bills Are Used In Banking Operations?

Answer :

Following are the kinds of Bills utilized in Banking Operations:

Inland payments and Foreign bills
Time payments and Demand payments
Trade payments and Accommodation bills
Clean payments and Documentary bills.
RMAN (Recovery Manager) Interview Questions
Question 10. What Are “inland Bills”?

Answer :

Inland payments are contract agreements which define the information related to the transportation of goods foreign places. Inland bills must be drawn on a person resident in India even though it is payable outdoor India. The critical condition is that it ought to be drawn in India. For instance a invoice is drawn in Nagpur and payable in Hyderabad via an importer in New York is an inland invoice.

Modern Banking Tutorial
Question eleven. What Is “overseas Bill”?

Answer :

A overseas bill is a financial device that is drawn at in usa and payable in another country. Any invoice which is not an inland invoice is a “Foreign Bill”. For instance a bill drawn in London and payable in Bhopal through a resident Indian is a overseas invoice.

Banking Interview Questions
Question 12. What Is “lodging Bill”?

Answer :

Accommodation invoice is the “invoice of change” with the aid of the 1/3 party which is also called an “Accommodation birthday celebration” or “Accommodation endorser” who acts as a guarantor. This type of invoice is not a true trade bill and it's miles drawn to deal with a recognised birthday party. After actual sale of products, when a invoice is drawn by way of a dealer and well-known through some other individual declare to be customer is accommodation invoice.

Accounts and Finance for Managers Interview Questions
Question 13. What Is “hundi”?

Answer :

Hundi is kind of “invoice of exchange”. In Hundi any seller sells his true underneath bill of alternate. These invoice of change are known as “Hundi”. Then the vendor sends the “Hundi” to the purchaser for its reputation. These bills of exchange are usually written in local language of that location and governed through nearby usage and practices. Generally 4 kinds of Hundi are used.

Darshani Hundi- It is much like the demand bills.
Miadi Hundi- It is similar to the usance bills.
Namyog Hundis- It is just like the order contraptions.
Khokha- which has been paid and cancelled.
Question 14. What Is “cheque”?

Answer :

A cheque is an device drawn on a unique bank and it's far handiest payable on demand.

Question 15. How Is Cheque Is Different From Boe?

Answer :

Cheque isn't like invoice of alternate in following ways:

Cheque is legitimate only 6 months from the date of issue.
Cheque is payable to the bearer on call for.
Cheque is drawn in a financial institution.
Notice of dishonor is not vital in cheque.
Bank Clerk Interview Questions
Question 16. When Should Banks Not Pay The Cheque?

Answer :

Bank have to not pay a cheque within the following cases:

Death of the drawer.
Insane clients
Insolvent clients
On receipt of legitimate prevent payment coaching.
When cheque is submit-dated.
When account has inadequate fund.
Question 17. What Is Stale Cheque?

Answer :

If the cheque is not provided for fee for a length of 6 months from the date of its issuance, it's miles then considered as Stale Cheque.

The validity of the cheque can be decreased by way of the drawer, like legitimate for 3 months however the maximum validity of any cheque is 6 months.

Assistant Manager Interview Questions
Question 18. What Is “saving Bank Account”?

Answer :

If a person has restrained earnings and he wants to keep a few cash for future, then the account he opens is a Saving Bank Account. The account can be opened with the minimum initial deposit amount determined with the aid of the financial institution. The account holder can deposit the cash each time. He also can withdraw the money with the aid of withdrawal form or ATM or cheque. The charge of interest varies from financial institution to financial institution and modifications time to time.

Modern Banking Interview Questions
Question 19. What Is “contemporary Deposit Account”?

Answer :

Big institutions, businesses, businessman and so on. Generally open their current deposit money owed. There are some restrictions on withdrawal in saving money owed and in current accounts there are no such regulations.

Current account can be opened with a few initial quantity determined with the aid of the financial institution. Here the bank does no longer pay any hobby on their balance, in fact the financial institution expenses the consumer certain quantity every year as Operational Charge. It also offers the power of withdrawing excess of the balance of deposit.

Question 20. What Is “overdraft Facility”?

Answer :

It is a facility supplied through the banks that permits an account holder to use or withdraw greater than they have got in their bills, but they can’t withdraw exceeding the maximum minus balance.This facility is called Overdraft Facility.

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Question 21. What Is “constant Deposit Account”?

Answer :

This facility lets in us to shop cash for long term. In saving bills the rate of interest is less, however in constant deposit account the fee of hobby is better. It is also called time period deposit account. The depositor can deposit the cash for lengthy periods like 7 to 10 years. During this period withdrawal is not allowed but the depositor can encash the money before the maturity period however at that time the fee of hobby will be less.

Question 22. What Is “recurring Deposit Account”?

Answer :

In this sort of account the depositor saves regularly and in return gets a fair go back of deposit. While opening this account the deposit according to month is constant. We can deposit the quantity as soon as in the month on a fixed date and the amount is also fixed. The general quantity with hobby we can obtain after the adulthood. The rate of interest in routine deposit account is higher than the saving account. The account may be opened via a person for my part as well as collectively with some other.

Question 23. What Are “non- Performing Assets” (npa)?

Answer :

The asset which isn't always generating earnings is a “Non-Performing Asset”. It is an asset or an account of a borrower which is considered as loss asset or dubious by using the financial institution account or the financial organization is called “non-performing asset”.

Deputy General Manager(DGM) Interview Questions
Question 24. What Is ninety Days Overdue?

Answer :

It’s a norm for the identity of the “Non-performing asset” (NPA) starting 31 March 2014.

The norm is as follow:

Interest or installment of principal stay late for greater than 90 days in recognize of time period loan.
The account remains out of order for the duration of greater than ninety days.
The bill stays past due in the course of greater than 90 days.
Any quantity to be acquired is due for greater than ninety days.
Banking Supervision Interview Questions
Question 25. What Is “cash Laundering”?

Answer :

The system of converting illegal money into criminal cash is Money Laundering. According to Section three of the Prevention of Money laundering Act 2002 as:

“Whosoever without delay or indirectly tries to indulge or knowingly assists or is involved in any technique or hobby connected with the proceeds of crime and is projecting it as the untainted assets shall be guilty of the offence of money laundering”.

Question 26. What Are The Common Factors Of “cash Laundering”?

Answer :

Generally there are four factors of cash laundering:

The actual ownership and real supply of cash isn't discovered.
The launderers change the form of the proceeds with a view to reduce the big quantity of coins generated via the initial illegal interest.
The path left by the manner is not known in order that it make it hard to comply with the cash from the start to cease.
Constant manage is maintained at the cash.
Question 27. What Are The Stages Of “money Laundering” Process?

Answer :

The following are the stages of “cash laundering” process:

Placement degree:-It is the primary introduction of entry for finances derived for any criminal sports.
Layering/Agitation stage: - The item of this degree is to prevent the tracing of unlawful proceed. It creates a complex community of transactions which attempts to not monitor the hyperlink among the initial entry and the end of the money laundering cycle.
Integration level: - This process achieves the appearance of overall legitimacy of price range thereby it refers to the return of budget to the legitimate economy for later extraction.
RMAN (Recovery Manager) Interview Questions
Question 28. Give Few Ways Of “money Laundering”?

Answer :

Following are the few approaches of cash laundering:-

Frequent change of coins into different currencies.
Large withdrawals from inactive account.
Transferring large amount of money to or from abroad.
More use of secure deposit centers.
Customer having several accounts in exceptional banks but in identical region.
Question 29. What Is “banknet”?

Answer :

It’s a type of fee community established through RBI. It was released all through 1991 in India. In this community the person can BANKNET from their premises thru leased or dial up strains at the local facilities. Here the messages of banking transactions are transferred inside the shape of codes for the agreement of the transaction and recommendation. It additionally gives get entry to to SWIFT through its device.

Question 30. What Is “rbinet”?

Answer :

It is a verbal exchange gadget walking on BANKNET and RBINET is a customer going for walks a personal pc called RBINET. It can talk with its server over the devoted leased or dial-up strains.

Question 31. What Is “i-net”?

Answer :

I-internet turned into opened in 1983. It is owned through the Department of Telecommunication which uses Packet Switching Public Data Network (PSPDN). PSPDN is a form of information sending technology. I-internet makes use of phone connections and satellites for communique which replaces the slow velocity records conversation. This generation connects important town and worldwide networks.

Question 32. What Is “nicnet”?

Answer :

NICNET stands for National Informatic Centre Network, which become installation in 1975. It promotes records lifestyle that's a government organization and work for authorities agencies. It affords multiple centers to finance, agriculture, industry, commerce by way of providing numerous packages. Currency chest operations in banks are completed by using NICNET.

Question 33. What Is “infinet”?

Answer :

The abbreviation for INFINET is Indian Financial Network. It turned into developed with the aid of RBI backed business enterprise which gives fast and cozy intra –financial institution and inter-financial institution communique gadget.

Banking Interview Questions
Question 34. What Is “spns”?

Answer :

The complete shape of SPNS is Shared Payment Network System. It provides round-the-clock banking convenience to customer of any financial institution appearing basic banking features like cash withdrawal, balance enquiry and so on. At any ATM belonging to any financial institution.

Question 35. Which Banking Services Can Be Used Through Information Technology (it)?

Answer :

Following banking offerings can be carried out through the use of IT:

Faster remittance services
Home banking
Tele- banking
Cash control products
Banking on-line
Question 36. What Is “digital Signatures” (ds)?

Answer :

Digital Signature is used for security motive and it's miles equivalent to the handwritten signature. It is a signature in digital form attached to an digital file. Digital signature identifies the origin of the message and preserve the integrity of message. It defines authentication of an electronic report by means of a person whose name the digital signature certificate. In India Information Technology Act 2000 considers virtual signature as personalized thumb print.

Bank Clerk Interview Questions
Question 37. What Is “mobile Banking”?

Answer :

Mobile banking gives us the ease of wearing out positive banking transactions through their cell smartphone. This facility is furnished by the banks. Many operations can be performed via using mobile banking like bank account balance, paying payments, request for cheque ebook. Stop charge education, summaries of closing 3 transactions, transferring money to other account and so on.

Question 38. What Is “digital Fund Transfer System” (efts)?

Answer :

Electronic fund transfer provides us to switch fund electronically changing the paper contraptions. The electronic fund transfer is fast and without difficulty available. It saves time of purchaser’s status in queue.

The products of EFTS consists of:- 

WTs- wi-fi transfers.
ATM- Automated Trailer Machine
CDs- Cash Dispensers
POS- Point of Sale terminals
Home banking
Question 39. What Is “smart Card”?

Answer :

The Smart Card is an Integrated Circuit Card (ICC) to store facts. It is a coins card or we will say ‘electronic purse’ that's a pre-paid coins card. The card affords an choice to the clients for debit and credit facilities. These playing cards can be reloaded by way of ATM or via cellphone. It reduces the need of sporting cash for buying and enables the card holder to growth the quantity at any time.

Question forty. What Is “credit score Card”?

Answer :

It is an device of price. The consumer gets some credit on the card which he can use for shopping, price ticket reserving, encashment and many others. The credit playing cards are of various types having exclusive credit limits depending upon the bank.

Assistant Manager Interview Questions
Question forty one. What Is “debit Card”?

Answer :

It is a payment card used to obtain coins, buying items and offerings automatically debiting the price to the cardboard holder’s financial institution account.

Question forty two. What Are The Advantages Of “debit Card”?

Answer :

The benefits of Debit Card:

No want to hold cash.
Quick and less complicated than the usage of cheque.
Used for withdrawal of cash.
It may be issued to any person having financial institution account.
Investment Banking Interview Questions




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