Download PDF IBPS PO and Clerk Interview Questions and Answers

Today I am sharing few very important questions for IBPS PO and Clerk interview questions. I tried to give short answer to each of the questions as during interview you won't get more than 15 seconds to answer a questions

List of Questions with Answers

1. Why you want to enter in Banking industry

• Because this industry is growing steadily and there would be no limit to my career growth. Further I need stability in my career.

2. Why are you not working anywhere from past 6 months ?

• As competition in banking exams in fierce, I was preparing for bank exams and a job could distract me from my mission. I concentrated on bank exams preparations only.

3. Can you shift to another city ?

• Yes, this job means a lot to me. I can move anywhere.

4. Why you left your previous job ?

• I can see a better and prosperous career in banking industry.

5. Why don't you join your father's business ?

• He is not making much money so he ordered me to do a job.

6. What is CRR

• Cash Reserve Ratio is  percentage of customer's deposits with commercial banks that they need to deposit with RBI. Right now it's 4%.

7. What is SLR

• Statutory Liquidity Ratio is the percentage of liabilities and time deposits that commercial banks need to keep with them in form of Cash, Gold or Government approved securities. Right now SLR is 22%

8. What is Bank rate

• Rate at which RBI lends money to commercial banks without any security. 

9. What are open market operations

• Buying and selling of government securities and bonds in open market by Government to maintain desired liquidity levels. 

10. What is Sensex and how it is calculated

• Sensex is the index of top 30 stocks in Bombay Stock Exchange(BSE)
• Value of Sensex is calculated using "Free Float Market Capitalization" method.
• Free float ratio is number of outstanding shares available for general public to trade.

Formula to calculate Sensex :-

11. What is CP ?

• Commercial paper is a short term unsecured debt instrument.

12. What are various services provided by a commercial bank ?

• Lockers
• Safe custody of funds
• Advancing loans
• Fund transfers
• Periodic payments
• Underwriting of shares
• Dealing in foreign exchange
• Discounting of loans
• Overdraft
• Must read - Functions of Banks

13. What is PPF

• Public Provident Fund is a tax saving investment for individuals.

Features :-

1. Number of deposits per year - 1 to 12
2. Minimum deposit - Rs 500
3. Interest received is tax free
4. Investment is exempted under section 80(c)

14. What are various investments under section 80(C) of Income Tax act

• Fixed deposit (5 years)
• PPF
• Equity mutual funds
• ELSS
• EPF and VPF
• NSCs (National Saving Certificate)
• ULIPs
• NPS (Pension plans)
• Life insurance

15. Minimum lock-in period for Tax saving Fixed Deposit

• 5 years

16. What are NPAs

• NPA stands for Non-Performing Assets.

Bank gives loans and advances to it's customers. These loans and advances are bank's assets. When the customers don't repay back the bank's money they don't perform. Such assets are known as Non-Performing Assets.

17. What was the purpose of setting up NABARD 

• NABARD is the apex institution for the development of farm sector , cottage industries and small scale industries in rural areas.

18. What are various functions of RBI

• Government’s banker and performs banking functions for the central and the state governments. 
• Bankers of banks
• Maintain liquidity in the economy
• Regulator of country's financial system
• Regulates and facilitates foreign trade advisor to the Government of India
• Issue currency notes

19. What is IRDA and what are it's functions

• Insurance Regulatory And Development Authority (IRDA) is the sole authority to regulate the insurance industry in India , to ensure the growth of insurance industry and protect the interest of policy holders. 

20. What are Derivatives ?

• In Derivative market the value of the instruments bought and sold is based on value of the underlying asset. The value of the instrument is ‘derived’ from the value of the underlying asset and hence it is known as Derivatives.

21. What is an Option in derivative market ?

• An Option give right to Option Holder to buy or sell a commodity during a certain period of time or on a specific date.

22. What is Call option and Put option ?

• Call option - An option which gives right to the Option Holder to buy a certain stock at specified time and specified date
• Put option - An option which gives right to the Option Holder to sell a certain stock at specified time and specified date

23. What is GDP ?

• Gross Domestic Product is the sum of all the goods and services produced within physical borders of a country in within a specific period of time. 

24. What is GNP ?

• GNP = GDP + Income of residents overseas -Income of Foreigners within the borders of domestic economy

25. What is Monetary Policy

• Policy by which a central authority attempts to control liquidity and interest aimed high growth rate and price stability.

26. What is Fiscal policy

• Government revenue generation and spending policies that impact the macro economy.

27. What is Fiscal deficit

• Excess of government expenditure over revenue

28. What is DeMat account 

• It is the process of converting the physical share certificates into equivalent number of electronic holdings

29. What is RuPay card

• RuPay is India’s own card payment system launched by National Payments Corporation of India (NPCI)

30. Bull and Bear market

• When investors expect prices to rise, it's known as Bull market.
• When investors expect prices to fall, it's known as Bear market.

31. What is SWIFT

• Financial messaging network which exchanges messages between banks and financial institutions

32. What is Service Tax

• Tax levied on providing services in India, Rate is 12%  + 0.36% for Education Cess

33. What is Mutual Fund ? What is safest type of fund ?

• Mutual Fund is a pool of fund where investors invests their money for a common objective.

Benefits of Mutual fund

1. Exempted under section 80(C)
2. Managed by experts

Index funds are safest because money is invested in all index stocks. The rise or fall of value align with index.

34. What is GST

• Goods and Services Tax, decision on this tax is pending. GST is going to replace all indirect taxes.

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