Q+A 4: Banking Exams Based Upon Interview Questions
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What is the main function of Competition Commission of IndiaThe CCI (Competition Commission of India) whose predecessor was the MRTPC (Monopolies and Restrictive Trade Practices Commission) was established to eliminate practices that adversely affect .....?
CCI is an independent body which become operational w.e.f. May 20, 2009 and is responsible for investigating the mergers, market shares & conditions besides regulating firms. CCI will ultimately replace the Monopolies and Restrictive Trade Practices Commission (MRTPC) of India. -
What is Lead Bank SchemeBackground: The National Credit Council was set up in Dec. 1967 to determine the priorities of bank credit among various sectors of the economy. The .....?
Lead bank scheme was introduced around 40 years ago and recently it was in the news as a high level committee chaired by RBI Deputy Governor Usha Thorat was constituted to review and revitalize this scheme. The scheme aims at facilitating credit deliveryPresentation of securities with transfer deeds in fulfillment of a transaction. to the farfetched areas of India. There are members of the committee from NABARD and SIDBI. Thus the scheme focuses upon financial inclusionThe Inclusive Meaning of Financial Inclusion Financial Inclusion or Inclusive Finance refers to the delivery of financial services (Not only Banking) at an affordable cost to ......
The Opinion of this committee is that full financial inclusion is possible only if it makes a facility of opening of no frill accounts backed by other specialized services. -
What are Nostro & Vostro Accounts ?
A nostro account is maintained by an Indian Bank in the foreign countries for a facility of easy clearingSettlement or clearance of accounts, for a fixed period in a Stock Exchange. of their transactions. For instance, if the bank pays a demand drawn on it by its correspondent bank, there is no delay because the foreign corresponded bank would already have credited the nostro account of the paying bank while issuing the demand draftDemand draft is discussed in section 85(A) of the NI Act. A Demand draft is an order to pay money drawn at one office ......
A vostro account is maintained by a foreign bank in India with their corresponding bank. -
From which country India imports maximum?
From China. Import from China was $ 24.16 billion in 2008-09, which got doubled in 3 years. This is 10.3 % of all the imports of India. -
What is Gold Standard?
A system of setting currency values whereby the participating countries commit to fix the prices of their domestic currencies in terms of a specified amount of gold. -
What is a Free FloatThe number of shares issued and outstanding of a company’s stock. ExchangeRegulated market place where capital market products are bought and sold through intermediaries. Rate system?
An exchange rate system characterized by the absence of government intervention. Also known as a clean floatWhere there is no official intervention – the price is permitted to vary in line with the market forces. . -
What are Special Drawing rights SDR?
SDR are new form of international reserve assets, created by the International Monetary Funds in 1967. The value of SDR is based on a portfolioA collection of securities owned by an individual or an institution (such as a mutual fund) that may include stocks, bonds and money market securities. ..... of widely used currencies and they are maintained as accounting entries and not as hard currency or physical assets like Gold. -
What are the requirements to open a New Branch in Rural Area?
Since 2006, RBI has approved the opening of new branches only on the condition that at least half of such branches are opened in under-banked areas as notified by the regulator.
The opening of branches by banks is governed by the provisions of Section 23 of the Banking Regulation Act, 1949. In terms of these provisions, banks cannot open a new place of business in India or abroad or change otherwise than within the same city, town or village, the location of the existing place of business without the prior approval of the Reserve Bank of IndiaThe Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934 with ..... (RBI). Thus, it is mandatory for RRBs to seek prior approval/ license from Rural Planning and Credit Department (RPCD) of RBI before opening of new branches/offices.
RRB should fulfill the following conditions to become eligible for opening of new branch/es.
1. It should not have defaulted in maintenance of SLR and CRRThe Cash Reserve Ratio is the amount of funds that the banks are bound to keep with Reserve bank of India, with reference to the ..... during the last two years.
2. The RRB should be making operational profits, its net worthThe aggregate value of the paid up equity capital and free reserves (excluding reserves created out of revaluation), reduced by the aggregate value of accumulated ..... should show improvement 3. Its net NPA ratio should not exceed 8 per cent. -
What is concept sustainable Development?
Meeting the needs of the present without compromising the ability of future generations to meet their needs is called sustainable development. This concept is popular in present context of development. -
What is the meaning of Financial Inclusion?
Today is is well recognized that large population of India is out of reach of the formal banking services. Financial inclusion is the concept which has been floated to bring the most of the rural population / area under the net of the financial and banking services.
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