Interview Questions.

Question 1. What Is Rtgs System?

Answer :

The acronym “RTGS” stands for Real Time Gross Settlement. RTGS system is a price range transfer mechanism where switch of money takes location from one financial institution to another on a “real time” and on “gross” foundation. This is the quickest viable money transfer system via the banking channel.

Settlement in “real time” method fee transaction is not subjected to any waiting period. The transactions are settled as quickly as they are processed. “Gross agreement” manner the transaction is settled on one to at least one foundation without bunching with another transaction. Considering that money switch takes vicinity inside the books of the Reserve Bank of India, the fee is taken as final and irrevocable.

Question 2. How Rtgs Is Different From Electronic Fund Transfer System (eft) Or National Electronics Funds Transfer System (neft)?

Answer :

EFT and NEFT are electronic fund transfer modes that perform on a deferred internet agreement (DNS) basis which settles transactions in batches. In DNS, the settlement takes area at a particular factor of time. All transactions are held up until that time. For example, NEFT agreement takes place 6 times an afternoon at some stage in the week days (nine.30 am, 10.30 am, 12.00 noon. 1.00 pm, 3.00 pm and four.00 pm) and 3 times during Saturdays (9.30 am, 10.30 am and 12.00 noon).

Any transaction initiated after a delegated settlement time would should wait till the next special agreement time. Contrary to this, in RTGS, transactions are processed continuously during the RTGS business hours.

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Question 3. Is There Any Minimum / Maximum Amount Stipulation For Rtgs Transactions?

Answer :

The RTGS gadget is commonly for huge value transactions. The minimal quantity to be remitted through RTGS is Rs.1 lakh. There is not any higher ceiling for RTGS transactions. No minimal or most stipulation has been constant for EFT and NEFT transactions.

Question four. What Is The Time Taken For Effecting Funds Transfer From One Account To Another Under Rtgs?

Answer :

Under ordinary circumstances the beneficiary branches are predicted to get hold of the funds in actual time as quickly as budget are transferred via the remitting financial institution. The beneficiary financial institution has to credit score the beneficiary’s account inside  hours of receiving the finances switch message.

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Question 5. Would The Remitting Customer Receive An Acknowledgement Of Money Credited To The Beneficiary’s Account?

Answer :

The remitting financial institution receives a message from the Reserve Bank that money has been credited to the receiving bank. Based in this the remitting financial institution can advocate the remitting customer that money has been brought to the receiving bank.

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Question 6. Would The Remitting Customer Get Back The Money If It Is Not Credited To The Beneficiary’s Account? When?

Answer :

Yes. It is predicted that the receiving financial institution will credit score the account of the beneficiary instantly. If the cash can't be credited for any purpose, the receiving financial institution could should return the money to the remitting financial institution within 2 hours. Once the money is acquired again with the aid of the remitting bank, the authentic debit entry within the customer’s account is reversed.

Question 7. Till What Time Rtg S Service Window Is Available?

Answer :

The RTGS service window for patron’s transactions is to be had from 9.00 hours to 15.00 hours on week days and from 9.00 hours to 12.00 noon on Saturdays i.E. To accept the customer transactions for agreement on the RBI for the duration of 9.00 hours to fifteen.00 hours on week days and among 9.00 hours and 12.00 noon on Saturday.

However, the timings among those hours might range depending at the customer timings the branches have. For inter-bank transactions, the carrier window is available from nine.00 hours to 17.00 hours on week days and from 9.00 hours to fourteen.00 hours on Saturdays.

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Question 8. What About Processing Charges/service Charges For Rtgs Transactions?

Answer :

While RBI has waived its processing expenses for all electronic payment merchandise till March 31, 2008, levy of service prices by banks is left to the discretion of the respective banks. The financial institution-wise information of charges levied are available at the RBI internet site – www (dot) RBI (dot) org (dot) in.

Question nine. What Is The Essential Information That The Remitting Customer Would Have To Furnish To A Bank For The Remittance To Be Effected?

Answer :

The remitting customer has to supply the following information to a financial institution for effecting a RTGS remittance:

Amount to be remitted
His account wide variety that is to be debited
Name of the beneficiary bank
Name of the beneficiary client
Account variety of the beneficiary consumer
Sender to receiver information, if any
The IFSC code of the receiving branch
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Question 10. How Would One Know The Ifsc Code Of The Receiving Branch?

Answer :

The beneficiary customer can attain the IFSC code from his branch. The IFSC code is likewise available within the cheque leaf. This code wide variety and financial institution branch details may be communicated by using the beneficiary to the remitting customer.

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Question eleven. Do All Bank Branches In India Provide Rtgs Service?

Answer :

No, all of the bank branches in India aren't RTGS enabled. As on January 31, 2007 greater than 26,000 bank branches are RTGS enabled.

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Question 12. Is There Any Way That A Remitting Customer Can Track The Remittance Transaction?

Answer :

It might depend on the arrangement between the remitting client and the remitting financial institution. Some banks with net banking facility offer this service. Once the funds are credited to the account of the beneficiary financial institution, the remitting purchaser gets a affirmation from his bank either by way of an e-mail or by using a short message at the cell.

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Question 13. How Much Volume And Value Of Transactions Are Routed Through Rtgs On A Typical Day?

Answer :

On a typical day, RTGS handles about 14000 transactions a day for an approximate value of Rs.1, 50,000 crore.

Question 14. How Can A Remitting Customer Know Whether The Bank Branch Of The Beneficiary Accepts Remittance Through Rtgs?

Answer :

For a budget transfer to go through RTGS, each the sending bank department and the receiving financial institution branch could need to be RTGS enabled. The lists are with no trouble to be had in any respect RTGS enabled branches. Considering that greater than 26,000 branches at greater than 3,000 cities/ cities and taluka places are covered below the RTGS gadget, getting this facts might now not be hard.

Question 15. What Is Rtgs?

Answer :

RTGS stands for actual time gross settlement, which means that that it enables cash to transport from one bank to some other on a real time and gross basis. Simply positioned, actual time approach the beneficiary financial institution gets the commands for fund transfer immediately and gross way that it isn't bunched with every other transaction and settlements of budget transfer instructions manifest in my opinion. Since the finances settlement takes vicinity inside the books of the Reserve Bank of India (RBI), remember the fact that the bills are very last and irrevocable.

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Question 16. What Is Neft?

Answer :

Neft stands for National Electronic Funds Transfer and is a payment gadget which enables one-to-one funds switch. Like RTGS, Neft additionally transfers budget from one financial institution, but in contrast to RTGS the agreement takes location in batches (which could consist of transfers from various people) in place of personally. The batches are settled in hourly time slots.

Question 17. How Is Rtgs Different From Neft?

Answer :

Timing: As mentioned above, Neft operates in hourly batches. Currently, it has 11 settlements from 9am to 7pm on weekdays and 5 settlements from 9am to 1pm on Saturdays. So, in case you initiate a transaction after a settlement time you don't have any choice but to attend until the next agreement time. But that’s not the case with RTGS transactions, on account that they are processed continuously for the duration of the RTGS commercial enterprise hours. The provider window for RTGS at banks is available from 9am to four.30pm on week days and from 9am to at least one.30pm on Saturdays for settlement on the RBI cease. Keep in thoughts that the timings that each financial institution follows can also vary.

Amount: As far as Neft goes, it does no longer have a minimal or maximum restrict of amount you can transfer. But the maximum amount consistent with transaction is restricted to Rs 50,000 for coins-based totally remittance and remittance to Nepal.

As a long way as RTGS is going, it's miles basically meant for huge transactions. The minimal amount that may be remitted via it's far Rs 2 lakh. RTGS does not have an higher ceiling for transactions. 

Charges: For Neft, inward transactions (whilst you receive price range thru Neft) are free, as no costs are to be levied from the individual to who fund are being transferred to. When you operate Neft to make an outward transaction (whilst you send finances via Neft) at a bank branch for quantities up to Rs 1 lakh, the rate is up to Rs 5 plus carrier tax. For transactions above Rs 1 lakh and up to Rs2 lakh, the rate is as much as Rs 15 plus carrier tax. For transactions above Rs 2 lakh, the charges can’t exceed Rs 25 plus service tax.

For RTGS, inward transactions (while you acquire price range thru RTGS) are loose. For outward transactions (whilst you ship budget through RTGS), if the quantity is among Rs 2 lakh and Rs 5 lakh, the costs will be up to Rs 30 in step with transaction. If the quantity transferred is above Rs 5 lakh, the fees can’t exceed Rs fifty five per transaction.

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Question 18. What Is Golden Slam?

Answer :

A participant who wins all four Grand Slam tournaments and the Olympic gold medal for the duration of his or her career is stated to have completed a Career Golden Slam. Serena Williams is the most effective participant to have finished a career golden slam in each singles and doubles.

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Question 19. What Is The 'short Ratio'?

Answer :

The brief ratio is a hallmark of a company’s quick-time period liquidity. The brief ratio measures a enterprise’s capability to meet its quick-term duties with its maximum liquid belongings. For this motive, the ratio excludes inventories from present day property, and is calculated as follows:

Quick ratio = (modern-day assets – inventories) / modern liabilities, or

= (coins and equivalents + marketable securities + debts receivable) / contemporary liabilities

The quick ratio measures the dollar quantity of liquid property available for each dollar of contemporary liabilities. Thus, a short ratio of 1.5 approach that a agency has $1.50 of liquid belongings available to cowl every $1 of current liabilities. The higher the short ratio, the higher the company's liquidity position. Also called the “acid-test ratio" or "quick property ratio."

Question 20. Difference Between Nationalized Banks & Private Bank?

Answer :

A public zone financial institution is a bank in which the government holds a chief portion of the stocks.

Government holdings are extra than 50% in public quarter banks. 

Private Sector Banks:

Private region banks are owned with the aid of personal lenders.
The personal banks are controlled and controlled by way of private promoters.
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Question 21. What Is Kyc?

Answer :

KYC Stands for “Know Your Customer”. The objective of KYC is to permit banks to recognize and understand their customers higher and help them control their dangers prudently. The procedure of KYC involves figuring out the client and verifying the identification by means of the use of dependable and independent documents or information.

Commercial bank's stability sheet has  predominant facets i.E. The liabilities and the belongings. From the examine of the stability sheet of a bank we come to recognise approximately a system which a financial institution has observed for raising price range and allocation of these price range in exceptional asset classes.

Question 22. What Is Financial Inclusion?

Answer :

Rangarajan committee (2008)1 described financial inclusion as, "the process of ensuring get right of entry to to financial offerings and well timed and adequate credit score wherein wished via vulnerable businesses together with weaker sections and occasional profits corporations at an low cost value."

Role of banks in Financial Inclusion programme:–

Given the evidence that economic get entry to varies extensively round the arena, and that increasing access remains an important venture even in superior economies, it is clear that there is much for policy to do. The need for coordination on collective action, and concentrations of poor human beings, mean that banks in India anywhere have an extensive function in supporting, regulating, and every now and then directly intervening within the provision of monetary services.

The function of industrial banks to be done as a part of financial inclusion programme:

Financial literacy - Providing economic literacy is the center feature of financial inclusion, as the main reason for exclusion is the shortage knowledge approximately formal economic machine. Financial literacy refers to understanding required for coping with private finance. The remaining aim is empowerment of humans to do so by means of them that are in their self interest.

Credit counseling - There are two varieties of credit counseling, one is preventive counseling and the opposite is healing credit counseling.

Preventive counseling will consist of bringing cognizance regarding price of credit score, availability of from side to side linkages, and so on., want to avail of credit on the idea of patron’s repaying capacity.

In case of healing counseling the credit score counseling centre will work out character debt control plans for resolving the unmanageable debt portfolio of the customers via running out powerful debt restructuring plan in session with department of the bank, taking into consideration profits level and size of the loans.

BC/BF version - With an effort to cognizance industrial banks, to attain rural household and farm household, banks were permitted to apply infrastructure of civil society organizations, rural kiosks, and adopt Business Facilitator (BF) and Business Correspondent (BC) models for supplying financial offerings.

KYC norms - In order to ensure that people belonging to the low income group both rural and urban regions do now not come across problems in beginning bank accounts, the Know Your Customer technique (KYC) for establishing financial institution account was simplified asking banks to are searching for handiest a picture of the account holder and self certification of addresses (the quantity of extremely good stability in these money owed might be restricted to 50000 rupees and overall transactions could be restrained to 1 lakh rupees in twelve months

KCC/GCC - Banks had been requested to introduce a popular credit score card (GCC) scheme for issuing GCC to their materials in rural and semi-city regions primarily based on the assessment of earnings and coins float of the family much like that triumphing under everyday credit card without insisting on safety and the motive or quit use of credit (as Point Of Sale-POS and ATM facilities) with similar merchandise aren't feasible or available and constrained infra shape in rural areas. The restriction underneath GCC is up to 25000 rupees. Banks have been advised to make use of the services of Schools, healths, and so forth.

No-frill debts financial literacy - In November 2005 RBI recommended banks to make to be had a basic banking “No-frill Account” with low or nil minimum balances as well as costs to extend the outreach of such debts to considerable sections of the populace.

Branch expansion.

Mobile banking - Mobile banking is a time period used for acting accounting transactions, balance tests, bills through cell tool including cell smartphone. Cell banking enables: 

Users to perform banking transaction the usage of mobile telephone like balance assessments, fund transfers, bill charge etc. 
Purchase items over internet or cellphone delivery 
Person to character fund transfers 
To pay goods at service provider location factor of sale.
Question 23. What Is Plastic Money?

Answer :

Plastic money is a time period that is used predominantly in connection with the tough plastic playing cards we use every day in area of real bank notes. They can are available many special forms which include coins cards, credit score playing cards, debit playing cards, pre-paid cash cards and so on.

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Question 24. What Is Mclr?

Answer :

The Reserve Bank of India has introduced a new method of placing lending charge by way of industrial banks under the call Marginal Cost of Funds based Lending Rate (MCLR). It has modified the existing base rate gadget from April 2016 onwards.

As according to the brand new tips by using the RBI, banks need to put together Marginal Cost of Funds based totally Lending Rate (MCLR) to be able to be the inner benchmark lending quotes. Banks have to set five benchmark charges for unique tenure or time durations ranging from in a single day (one day) prices to three hundred and sixty five days.

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Question 25. Why The Mclr Reform?

Answer :

At gift, the banks are barely gradual to exchange their interest charge in accordance with repo fee alternate by way of the RBI. Commercial banks are significantly depending upon the RBIs LAF repo to get short term price range. But they are reluctant to trade their character lending costs and deposit prices with periodic adjustments in repo charge.

Whenever the RBI is converting the repo fee, it turned into verbally compelling banks to make modifications of their lending fee. The cause of converting the repo is found out handiest if the banks are converting their individual lending and deposit quotes.

Question 26. How To Calculate Mclr?

Answer :

In economics sense, marginal means the additional or changed scenario. While calculating the lending price, banks ought to don't forget the changed value conditions or the marginal fee situations. For banks the price for acquiring price range is basically the interest rate given to the RBI for getting short term finances.

Following are the primary components of MCLR:

Marginal price of budget;
Negative deliver on account of CRR;
Operating expenses;
Tenor top rate
Negative bring as a consequence of CRR: Is the price that the banks should incur at the same time as preserving reserves with the RBI. The RBI isn't always giving an hobby for CRR held by using the banks. The price of such budget kept idle can be charged from loans given to the people.
Operating cost: is the operating costs incurred by using the banks Tenor top rate: denotes that higher interest can be charged from long term loans.
Marginal Cost: The marginal price this is the unconventional detail of the MCLR. The marginal fee of funds will comprise of Marginal cost of borrowings and go back on internet really worth. According to the RBI, the Marginal Cost should be charged on the premise of following factors: 
Interest fee given for various varieties of deposits- savings, modern, term deposit, foreign currency deposit.
Borrowings – Short time period interest price or the Repo charge and so on., Long time period rupee borrowing rate.
Return on net really worth – according with capital adequacy norms.
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Question 27. What Is S4a?

Answer :

“S4A” new scheme has been introduced by using the Reserve Bank of India (RBI) for resolution of pressured assets and bad loans of massive initiatives.

The S4A will cover the ones projects which have started out commercial operations and feature extremely good mortgage of over Rs.500 crore. The motive of the S4A is to bolster the creditors’ capability to cope with stressed property and placed actual property returned heading in the right direction through offering an avenue for remodeling the economic shape of entities dealing with authentic difficulties. The scheme is an optional framework for decision of big confused account.

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Question 28. What Is Mission Indradhanush?

Answer :

Finance Minister in its try and revamp functioning of public sector banks has released a seven prolonged plan known as – Indradhanush. The seven factors consist of appointments, board of bureau, capitalization, de-stressing, and empowerment, framework of responsibility and governance reforms.