Interview Questions.

Question 1. When Rbi Was Established?

Answer :

RBI changed into installed on 1 April 1935 in accordance with the availability of the Reserve Bank of India Act 1934.

Question 2. What Are The Main Functions Of Rbi?

Answer :

Functions of RBI:

It formulates implements and video display units the monetary rules.
It keeps the charge balance and guarantees adequate waft of credit score.
It protects depositor’s hobby and affords price effective banking offerings to the general public.
It manages the Foreign Exchange Management Act, 1999.
It presents facility to external trade and payment. 
It problems and exchanges the forex and coin and destroys too besides 1Rs. 
It acts as bankers for the important and country government banks.
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Question 3. What Are Rbi Monetary Policy Objectives?

Answer :

Monetary policy uses the devices under the relevant bank to regulate the provision of price and use of cash and credit score. Its goal is reaching the precise financial goals like low and stable inflation and selling growth.

RBI targets:

To preserve the fee stability.
Ensure the flow of credit score to the efficient area of the financial system.
Support the economic growth.
Regulate the economic gadget.
Question 4. When Was Rbi Nationalized?

Answer :

RBI turned into nationalized on 1 January 1949.

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Question 5. What Are Direct Instruments Of Monetary Policy?

Answer :

Cash Reserve Ratio, Statutory Liquidity Ratio and Refinance Facilities are the direct devices of Monetary Policy.

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Question 6. What Are Indirect Instruments Of Monetary Policy?

Answer :

Liquidity Adjustment Facility, Open market operations, Market stabilization scheme, repo rate, reverse repo fee and financial institution price the indirect instruments of monetary coverage.

Question 7. What Is Cash Reserve Ratio (crr)?

Answer :

Banks keep a positive percentage in their general belongings in the form of cash, partially to meet their statutory reserve requirement and in part to fulfill their personal daily needs for making payments. Hence cash is held partially within the form of “cash on hand” and the partially coins inside the shape of balances with the RBI. The ratio of bank’s stability with RBI to the banks net call for and time liabilities is known as CRR.

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Question 8. What Is Statutory Liquidity Ratio (slr)?

Answer :

SLR:– Statutory Liquidity Ratio. It is the share of internet demand and time liabilities that financial institution should keep in secure and liquid property inclusive of cash, gold, authorities securities and so forth. Every bank has to hold on the near of commercial enterprise each day.

Question nine. What Is Time Liability?

Answer :

Fixed deposits, cash certificates, cumulative and RDs, personnel protection deposits, deposit held as securities for advances and so on. Are time liabilities.

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Question 10. What Is Open Market Operation?

Answer :

Open market operation means buy and sale of government securities by using RBI from the general public and banks on its personal account.

Question 11. What Are The Objectives Of Slr?

Answer :

Objectives of SLR:

To restriction growth of banks credit score.
To boom banks funding in permitted securities.
To ensure solvency of banks.
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Question 12. What Is Liquidity Adjustment Facility?

Answer :

It consists of each day infusion and absorption of liquidity on repurchase foundation thru repo and opposite repo the use of authorities protection as collateral.

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Question 13. How Many Types Of Subsidiaries Does Rbi Have?

Answer :

RBI has two types’ subsidiaries:

Fully owned subsidiary.
Majority stack subsidiary.
Question 14. Name The Fully Owned Subsidiaries Of Rbi?

Answer :

RBI has three completely own subsidiaries: 

National Housing Bank(NHB)
Deposit Insurance and Credit Guarantee Corporation of India(DICGC)
Bharatiya Reserve Bank Note Mudran Pvt. Ltd.(BRBNMPL)
Question 15. Name The Majority Stack Subsidiary Of Rbi?

Answer :

National Bank for Agriculture and Rural Development (NABARD) is the handiest Majority Stack Subsidiary of RBI.

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Question sixteen. How Many Types Of Repos Are Available In International Market When Classified With Regard To Maturity Of Underline Security, Pricing, Terms Of Repo Etc.?

Answer :

There are four forms of repos are in International Market:

Buy-promote lower back Repo
Classic Repo
Bond lending/borrowing Repo
Tripartite Repo
Question 17. What Is Market Stabilization Scheme (mss)?

Answer :

In Market Stabilization Scheme big capital go with the flow is absorbed thru promoting of quick-dated government securities and treasury payments.

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Question 18. What Do You Mean By Repo Rate?

Answer :

Whenever the financial institution has any scarcity of fund they could borrow it from RBI. Repo price is the charge at which the bank can borrow the quantity from RBI.

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Question 19. What Is Reverse Repo Rate?

Answer :

Reverse repo rate is the price at which RBI borrows cash from the Bank.

Question 20. What Is Bank Rate?

Answer :

Bank charge is the fee which RBI costs on the mortgage and advances prolonged to industrial banks and other economic intermediaries. It is a device utilized by RBI to govern the supply of money.

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Question 21. Which Is The New Instrument Launched By Rbi To Protect The Saving Of Poor And Middle Class People From Inflation And Insensitive Household Sectors?

Answer :

On 15 May 2013 RBI launched a brand new tool known as “Inflation Index Bonds (IIBs)” to guard the financial savings of bad and center class people from inflation and insensitive household sectors.

Question 22. What Is Scc?

Answer :

The acronym of SCC is Selective Credit Control. It refers back to the directives issued by way of RBI Banking Regulation Act 1949 to modify the flow of financial institution credit score against the chosen commodities.

Question 23. On Which Factors Scc Depend?

Answer :

SCC relies upon upon the following elements:

The availability of non-bank finance.
The volume of powerful credit score regulations
The diploma of shortfall in deliver with regards to normal needs.
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Question 24. What Are The General Techniques Used By Sccs?

Answer :

The popular strategies utilized by SCCs are:

Minimum margin for lending against safety exact commodities is constant.
Ceiling on maximum advances to man or woman borrower against stock of positive commodities.
Minimum discriminatory quotes of pursuits prescribed for certain sorts of advances.
Prohibition of easy advances for financing hoardings of sensitive commodities.
Prohibition of the discounting of bills masking sale of sensitive commodities.
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Question 25. How Many Printing Presses For Printing Notes Are Available In India And Name The Places Where They Are Located?

Answer :

There are four printing presses are available in India for printing notes. They are located at:-

Dewas (Madhya Pradesh)
Nasik (Maharashtra)
Mysore (Karnataka)
Salboni (West Bengal)
Question 26. Name The Authority That Mint Coins In India And Also Name The Places Where The Minting Operation Is Processed?

Answer :

The GOVERNMENT OF INDIA has the authority of minting cash underneath the advisory of RBI.

The minting of coins is operated in the following cities:-

Mumbai
Noida
Kolkata
Hyderabad
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Question 27. What Is Wma And What Does It Signifies?

Answer :

WMA stands for “Way and Mean Advances”. It is a quick time period mortgage from RBI to the GOVERNMENT OF INDIA which lets in government to fulfill their financial necessities.

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Question 28. Name The Fund Management Scheme Introduced By Rbi Which Helps The Banks In Their Fund Management?

Answer :

Two styles of fund control schemes had been brought via the RBI which assist the banks to keep their finances:-

Centralised fund control device (CFMS)
Transfer of price range throughout deposit account branch (DAD)
Question 29. What Is Para-banking?

Answer :

RBI lets in the bank to carry out a few sports other than banking. This is called PARA-BANKING.

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Question 30. Name Some Para-banking Activities?

Answer :

Following are some PARA-BANKING sports:-

Mutual budget enterprise
Asset control
Insurance enterprise
Merchant banking
Factoring carrier
Equity participation in project capital
Leasing
Question 31. By Which Mean Rbi Did The Off-web site Surveillance?

Answer :

RBI accomplishes the off-web page surveillance by way of OFF-SITE SURVEILLANCE AND MONITORING SYSTEM (OSMOS).

Question 32. Name The Rating System Given By Rbi For The Banking Sector?

Answer :

The rating device given by way of RBI for banking zone is called CAMELS.

The importance of CAMELS is as observe:-

C - Capital adequacy ratio
A - Asset satisfactory (level of NPA)
M - Management effectiveness
E - Earning (profitability)
L - Liquidity
S - System and control
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