1.

What was the need of Regional rural Banks, when already Nationalised banks
were working in India?
 To connect with the rural customers specially farmers with the regulated
financial system
 To explain the Banking in the regional language
 To encourage public confidence in the financial system
 To provide safety to the savings of customers
 To create credit and increase the supply of money.
 Main motive is Financial Inclusion
2. Financial inclusion means that individuals and businesses have access to useful and
affordable financial products and services that meet their needs – transactions,
payments, savings, credit and insurance.
3. GOI initiatives towards Financial Inclusion.
 Pradhan Mantri Jan Dhan Yojana (PMJDY)
 Atal Pension Yojana (APY)
 Pradhan Mantri Vaya Vandana Yojana (PMVVY)
 Stand Up India Scheme.
 Pradhan Mantri Mudra Yojana (PMMY)
 Pradhan Mantri Suraksha Bima Yojana (PMSBY)
4. Reasons for choosing Bank Job:
 Banks are pillar of any Nation’s Economy
 For Job Stability (do not use secure, say it is a stable job)
 Banking Sector offers tremendous growth opportunities.
 Fast and fair selection process
 Continuing education and community service is highly encouraged.
 Socially respectable job
5. M. S. Swaminathan: Father of Green Revolution in India & Father of RRB in India.
6. Schedule Commercial Bank:
Scheduled Banks are listed under Clause 42 in the Second Schedule of the RBI Act of 1934.
For a bank to qualify as a Scheduled Bank, it must have a total minimum value of paid-up
capital and a reserve of INR 5 lacs.
Scheduled Banks in India are divided into five types:
o Regional Rural Banks
o Foreign Banks
o Development Banks
o Private sector Banks
o Nationalized Banks
7. Role of Banking
 Banks promote economic growth,
 Safe keeping of public money in the form of deposits.
 Providing loans, help to support the growth and development of individuals as well
Industries. (Ex: Housing sector, Infrastructure, Automobile sector, Consumer
durables etc)
  Build relationships with customers.
 Helping Government in its reach to common public in poverty alleviation
programmes
8. Non-Schedule Bank:
 Non- Scheduled Banks in India are not listed under the Schedule II of the Reserve Bank
of India Act, 1934.
 Reserve capital can be lesser than INR 5 Lakhs
 Interbank financial transactions and the cheque-clearing facility is not available.
 Have to exhibit compliance to specific guidelines stipulated by RBI.
9. Payment Bank definition: A payments bank is like any other bank, but operating on a smaller
scale without involving any credit risk. In simple words, it can carry out most banking
operations but can't advance loans or issue credit cards.
10. The nationalization of banks in India was done with a view to focus on rural and agricultural
sectors as a part of their social responsibility. Their resources were utilized to empower
farmers and agricultural laborers in order to free them from the clutches of money lenders.
 The first phase of nationalization started in 1955 when the erstwhile Imperial Bank
of India became State Bank of India with an Act of parliament.
 The second phase of nationalization started in 1969 with the nationalization of 14
major commercial banks in India.
 In 1980, 6 more commercial banks were nationalized and became public sector
banks.
11. Bank Merger is an agreement between the acquiring bank and the merged bank to combine
their assets and liabilities and become a single entity.
The merger resulted in 10 Public Sector Banks pooled into 4 Public Sector Banks.
The merger is beneficial to the banking sector as the financial performance and
efficiency of acquirers improved post-merger.
The banks that were merged
 Punjab National Bank, which merged with Oriental Bank of Commerce and United
Bank of India;
 Canara Bank's with Syndicate Bank;
 Union Bank, with Andhra Bank and Corporation Bank; and
 Indian Bank, which merged with Allahabad Bank.
12. Social Banking: Shifting the orientation of policies towards serving the common mass is
known as social banking. Nationalization of Commercial Banks was done with this concept in
the backdrop.
Mass Banking:
Typically, retail banking services begin with a target clientele which is the common masses.
The “mass retail banking” is the stage in which the bank provides standardized banking
products and services to its customers.
13. Shadow banking: It is a term used to describe bank-like activities (mainly lending) that take
place outside the traditional banking sector. It is now commonly referred to internationally
as non-bank financial intermediation. Ex:LIC Housing Finance Limited, Bajaj Finance Limited,
and Shriram Finance Limited etc.
14. Universal Banking: Universal banking is a system in which banks provide a wide variety of
comprehensive financial services, including those tailored to retail, commercial, and
investment services. Providing maximum services under one roof.
Deposits
Loans
Life Insurance services
Wealth Management services including Mutual Funds
D-mat accounts for securities trading
Credit Cards etc
15. Digital banking :The Digital Banking definition is banking done through the digital platform. It
means availability of all banking activities online.
Some Examples of Digital Banking are as under:
UPI (Unified Payment Interface)
Internet Banking.
Mobile Banking.
Banking Cards.
Mobile Wallets.
Bharat Interface For Money.
Point of Sales (PoS)
16. Core Banking: Core banking is a banking service provided by a group of networked bank
branches where customers may access their bank account and perform basic transactions
from any of the member branch offices.
Core banking is a back-end system that connects multiple branches of the same bank
together.
17. Deposits Types: Savings BankAccounts, Current Accounts, Time Deposits.
Savings Bank Account: A savings account is a basic type of financial product that allows you
to deposit your money and typically earn a modest amount of interest.
Some Restrictions / cap on number of withdrawals during the month. The purpose of a
savings account is to encourage and promote saving.
Current Account: Current Accounts derive their name from the purpose they are suited for,
regular transactions.This type of account is more suited for users like firms, companies,
public enterprises, businessmen, etc.
Currents accounts do not earn any interest due to the fluidity they offer.
Current accounts usually do not carry a limit on the number of transactions which can be
made.
Time Deposits: Deposit made for a fixed time duration, interest accured on compounding
nature.
18. Banking Ombudsman is a body created by the RBI to take care of the banking complaints of
the general public in India. RBI appoints a senior official or Ombudsman who addresses and
resolves all the complaints and grievances of the customers.
19. There are two types of ATMs: Basic units: These ATMs only allow customers to withdraw
cash, receive updates on their account balance and change their card PINs.
Complex or full-service ATMs: These units offer comprehensive functions such as cash
deposits and transfers, along with withdrawals and account updates.
20. The RBI is also regarded as a banker to the banks.
It was established on April 1, 1935, under the Reserve Bank of India Act, 1934. All the RBI
functions are supervised by the RBI Governor.
The present Governor of the Reserve Bank of India is Shri. Shaktikanta Das.
21. RBI Monetary policy is a set of actions to control a nation's overall money supply and
achieve economic growth. The basic aim of monetary policy is to determine how much
money an economy should have in circulation, keeping inview of the inflation.
22. Repo rate is the rate at which the central bank of the country (Reserve Bank of India) lends
money to commercial banksin the event of any shortfall of funds.
23. Reverse repo rate is the rate at which the central bank of the country (Reserve Bank of India)
borrows money from commercial banks within the country.
24. There are six members in the RBI's Monetary Policy Committee (MPC) of which three are
from RBI and three are appointed by the Central government. The Members of the
Monetary Policy Committee appointed by the Central Government shall hold office for a
period of four years.
25. SLR: Statutory Liquidity Ratio or SLR is the minimum percentage of bank deposits, that a
commercial bank has to maintain in the form of liquid cash, gold or other securities.
(Demand & Time liabilities).The SLR is fixed by the RBI. Current SLR is 18%
26. CRR: Cash Reserve Ratio (CRR) is a specified minimum fraction of the total deposits of the
banks, which commercial banks have to hold as reserves either in cash or as deposits with
the RBI. The CRR is fixed by RBI. Current CRR is 4.5%.
27. MSF: Marginal standing facility (MSF) is a window for banks to borrow from the Reserve
Bank of India in an emergency when inter-bank liquidity dries up completely.
28. LAF: A liquidity adjustment facility (LAF) is a tool used in monetary policy, primarily by the
Reserve Bank of India (RBI) that allows banks to borrow money through repurchase
agreements (repos) or to make loans to the RBI through reverse repo agreements.
29. There are four currency printing presses actively print notes: Dewas in Madhya Pradesh,
Nasik in Maharashtra, Mysore in Karnataka, and Salboni in West Bengal.
30. Important Functions of RBI
 Issue of Bank Notes
 Banker to the Government
 Custodian of the Cash Reserves of Commercial Banks
 Custodian of country’s forex reserves
 Lender of last resort
 Controller of credit
31. Often regarded as the banker of banks, the RBI acts as a parent to all commercial banks in
India. Thus, it becomes the lender of the last resort for all banks when they are in a crisis
situation. RBI helps them by lending money, to sail through the tide of financial difficulties.
32. RBI controls the credit created by the commercial banks in India, in accordance with the
economic priorities of the government of India.
33. A savings account is a basic financial product that allows you to deposit your money
and typically earn a modest amount of interest. Restrictions are there on number of
withdrawals during the month. The purpose of a savings account is to encourage and
promote saving.
 Current Accounts derive their name from the purpose they are suited for, regular
transactions.This type of account is more suited for users like firms, companies,
public enterprises, businessmen, etc.Currents accounts do not earn any interest due to
the fluidity they offer.Current accounts usually do not carry a limit on the number of
transactions which can be made.
34. BSBDA (Basic Saving Bank Deposit Account) account is an account with a limit of number of
deposits and withdrawals in a month.(4 withdrawals in a month including ATM transactions).
The total of debits by way of cash withdrawals and transfers will not exceed ten thousand
rupees in a month. RBI has introduced the Basic Savings Bank Deposit Account (BSBDA) in
2012
35. Demat or Dematerialised Account is used to hold shares and securities in electronic format.
36. A Nostro account is a bank account that a bank holds with a foreign bank in the currency of
the country where the funds are held. (Our account with You)
37. Small Accounts are for those people who do not have any of the 'KYC documents'. A 'small
account' can be opened on the basis of a self-attested photograph and putting signature or
thumb print in the presence of an official of the bank. Features: Average deposit in an year
should not exceed one lac rupees.
Small accounts are valid for a period of 12 months initially which may be extended by
another 12 months if the person provides proof of having applied for an Officially Valid
Document.
38. NRO ACCOUNT: A Non-Resident Ordinary (NRO) Account is an Account, for many Non-
Resident Indians (NRIs) to manage their deposits or income earned in India such as
dividends, pension, rent, etc.
NRE ACCOUNT: An NRE account is a bank account opened in India in the name of an NRI, to
park his foreign earnings.
In terms of tax benefits, NRE Accounts enjoy tax exemption in respect of interest income on
the bank accounts as well as Fixed Deposits. On the other hand, the interest income on NRO
Accounts and deposits is subject to tax at applicable rates.
39. VOSTRO AC: A Vostro Account is one that is managed by a correspondent bank on another
bank’s behalf. (Your account with us)
40. Escrow refers to a neutral third party holding assets or funds before they are transferred
from one party in a transaction to another. The third party holds the funds until both buyer
and seller have fulfilled their contractual requirements.
41. SMA :SMA are those accounts that shows symptoms of bad asset quality once the account is
overdue or before its being identified as NPA.
42. NABARD is India’s apex development bank, established in 1982 under an Act of Parliament
to promote sustainable and equitable agriculture and rural development.Refinance
is provided by NABARD, for production purposes at concessional rate of interest to State Co-
operative Banks (StCBs) and Regional Rural Banks (RRBs) by way of sanction of credit
limits.NABARD provides 100% refinance to banks for their direct lending to SHGs.
43. The objectives of SIDBI are giving financial aid to MSMEs, refinancing banks and financial
institutions, regulating the micro, small and medium enterprise financial companies,
facilitating technology modernization & upgradation.
44. A payments bank is like any other bank, but operating on a smaller scale without involving
any credit risk. In simple words, it can carry out most banking operations but can't advance
loans or issue credit cards.The main objective of the payment banks is to widen the spread
of financial services and payments to low income groups, small businesses, and migrant
labour workforce.

45. A co-operative bank is a small-sized, financial entity, where its members are the owners and
customers of the Bank. In order to support the financial needs of a community such as a
village or a specific community, people come together to pool resources and provide
banking services such as loans, savings accounts etc.They are regulated by the Reserve Bank
of India (RBI) and are registered under the States Cooperative Societies Act.

46. EXIM BANK : The bank's primary function is to finance, facilitate and promote India's
international trade. The main function of the Export and Import Bank of India is to provide
financial and other assistance to importers and exporters of the country.

47. ECGC (Export Credit Guarantee Corporation of India): An Export Promotion Institution, It
Provides credit risk covers to Exporters against non-payment risks of the overseas
buyers / buyer's country in respect of the exports made.

48. Payments Banks offer limited banking services such as deposit accounts, remittances, and
debit card issuance. These banks cannot lend money. Small Finance Banks offer a wider
range of financial services, including lending to micro-enterprises and to low-income
households.

49. Nonbank financial companies (NBFCs) are entities that provide similar services to a bank but
do not hold a banking license. Some Ex are : Bajaj Finserv, Power Finance Corporation
Limited, Mahindra & Mahindra Financial Service, Shriram Transport Finance Company,
Muthoot Finance Ltd, etc.

50. A cheque can be defined as a financial instrument that allows for the transfer of money from
one person/ institution to the designated recipient.Types of Cheques. Bearer Cheque, Order
Cheque, Crossed Cheque, Open cheque, Post-Dated Cheque, Stale Cheque, Traveller's Cheque.
Bearer Cheque: The person who presents the cheque, (i.e bearer) can go to any bank branch
in the country, and the bank cannot refuse to pay the person who presents the cheque.
Order Cheque:It means that only the individual whose name is mentioned as the payee can
receive the specified sum of money.
Crossed Cheque: A crossed cheque is not payable over the counter but shall be collected
only through a banker. The amount payable for the crossed cheque is transferred to the
bank. (Un crossed Cheques can be paid over the counter. Crossed cheques are not paid over
the counter.)
Open cheque: An open cheque does not have crossed lines, and hence, is also called an
uncrossed cheque.
Post dated cheque: Cheque contains a future date is known as PDC.
Stale Cheque:A cheque contains a past date with expiry is known as Stale cheque.
 Traveller’s Cheque: Foreigners on vacations carry traveller's cheques instead of carrying hard
cash. These cheques are issued to them by one bank and can be encashed in the form of
currency at a bank located in another location or country.
51. Crossing of a cheque: It is an instruction to the paying banker. A crossed cheque is not
payable over the counter but shall be collected only through a banker. The amount payable
for the crossed cheque is transferred to the bank account of the payee.
52. Demand draft or DD is a method of funds transfer, used by an individual or a bank to
transfer money from one bank account to another. Demand drafts differ a lot from cheques.
Draft is issued by a Banker. Payable at another bank. Cheque can be stopped, where as draft
cannot be stopped.
53. A demand draft is issued by a bank while a check is issued by an individual.
A demand draft is drawn by a bank while a cheque is drawn by a customer of a bank.
Payment of a demand draft may not be stopped by the drawer as it may with a cheque.
54. As per RBI guidelines, the cheque is valid for 3 months only. After the 3 months, the drawer
has to revalidate to increase the validity by 3 months.
55. CTS: A cheque truncation system is a process of a cheque presentation forclearing
electronically, through a scanned image. Physical movement of a cheque is not required.
56. Different types of Loans provided by the Banks: Working Capital for Business people, Term
Loans for Industry and Business people, Working Capital loans for farmers known as Crop
Loans, Term Loans for Agriculture Sector Tractor Loans, Dairy Loans, Poultry Loans etc.,
Gold Loans, Mudra Loans for Small and Medium entrepreneurs, Loans on Fixed Deposits.
57. DifferencesbetweenaSoftloananda Hardloan:A soft loan is basically a loan on
comparatively lenient terms and conditions as compared to other loans available in the
market. These easier conditions might be in the form of lower interest rates,
prolonged repayment duration, etc.
A hard money loan is a type of loan that is secured by real property.
58. Legal Heir:Legal heirs of a deceased person are spouse, children and parents.
59. Loan maturity:Loan maturity date refers to the date on which a borrower's final loan
payment is due.
60. Hypothecation:Hypothecation is a type of security where the borrower uses the asset
which is the collateral for a loan, borrower retains possession and use of the asset.
(Ex: Machinery purchased by bank loan) (possession is with the Borrower)
61. Pledge:In case of a Pledge, the lender holds on to certain goods or items such as gold, stock
or certificates till the time the borrower makes the complete payment of the loan amount.
Possession is with the lender.
62. Mortgage:A mortgage is the transfer of an interest in specific immovable property for the
purpose of securing the loan.
63. In the case of a “reverse mortgage” instead of making payments to the lender, the borrower
receives money from the lender. Ex: Senior Citizens mortgaging the House to the Banker and
receiving periodical installments, instead of repaying.
64. Difference between Credit Cards & Debit Cards:Debit cards allow you to spend money by
drawing on funds you have deposited at the bank. Credit cards allow you to borrow
money from the card issuer up to a certain limit to purchase items or withdraw cash.
65. Prime Lending Rate:A prime rate or prime lending rate is an interest rate used by banks,
usually the interest rate at which banks lend to first class customers with good credit history.
66. Hard Money:Hard money refers to a currency that is backed by a valuable commodity such
as gold or silver.Hard currency is a stable and reliable form of currency that is issued by
the government and widely accepted around the world.
67. Money Market:Money market consists of various financial institutions and dealers, who
seek to borrow or loan securitieswho are in urgent need of short-term funds.
68. Capital Market:Capital market is a place where buyers and sellers indulge in trade
(buying/selling) of financial securities like bonds, stocks, etc. The trading is undertaken
by participants such as individuals and institutions.
69. Call Money & Notice Money:Call Money is the borrowing or lending of funds for
1day. Where money is borrowed or lend for period between 2 days and 14 days it is known
as Notice Money.
70. Money Market Instruments: Interbank loans (loans between banks), money market
mutual funds, commercial paper, Treasury bills and securities lending and repurchase
agreements, are all examples of money markets instruments.

71. TreasuryBills:Treasury Bill is a money market instrument is issued by the Government of

India. The bill is issued as a promissory note of repayment in the future. The purpose of a
treasury note is to secure funds to meet the short-term fund requirements of the
government.These are issued in three tenors, namely, 91 day, 182 day and 364 day.
72. COMMERCIAL PAPER:Commercial Paper (CP) is an unsecured money market instrument
issued in the form of apromissory noteby large corporations to get money to meet short
term debt obligations.
73. Equity: Equity is the amount of capital invested or owned by the owner of a company.
74. Mutual Fund:A mutual fund is a pool of money managed by a professional Fund
Manager.Mutual funds pool your money with other investors to "mutually" buy stocks,
bonds, and other investments. They're run by professional money managers.
75. Shares:A share represents a unit of equity ownership in a company. Shareholders are
entitled to any profits that the company may earn in the form of dividends. They are also
the bearers of any losses that the company may face.
76. Debenture:Debentures are the written debt instruments acknowledging the debt under
the common seal of the company. They may or may not be secured by collateral. It is a
legal contract where the issuer promises to repay the principal as well as the interest
amount after the specified period.
77. Negotiable Instrument:A negotiable instrument is a signed document that promises a
payment to a specified person . (Ex: Cheque, Promissory note etc)
78. Promissory Note: A “promissory note” is an instrument in writing containing an
unconditional undertaking, signed by the maker, to pay on demand or at a fixed or
determinable future time a certain sum of money only to, or to the order of, a certain
person, (not being a bank-note or a currency-note)
79. Bill of Exchange:A bill of exchange is often used to protect the transaction. It is a binding
agreement between buyer and seller where the buyer agrees to pay a fixed sum of cash
at a predetermined date or upon demand from the seller. Similar to Promissory note but
backed by Trade Transaction.Bill of exchange in Indian Language is called Hundi.
80. Certificate of Deposit: In simple terms a certificate issued by a bank to a person depositing
money for a specified length of time at a specified rate of interest. Fixed deposits (FD) are
even referred to as CDs or time deposits by certain banks.But One difference is that CDs
are freely negotiable while FDs are not.With a view to further widening the range of
 money market instruments and giving investors greater flexibility in deployment of their
short-term surplus funds, Certificates of Deposit (CDs) were introduced in India in 1989.
81. Priority Sector Lending:Reserve Bank of India directing the banks for providing a specified
portion of the bank lending to few specific sectors like agriculture and allied activities, micro-
and small enterprises, education, housing for the poor, and other low-income groups and
weaker sections is known as Priority Sector Lending.
82. Small Farmer:A small farmer is a farmer, farming agricultural land of more than 1 hectare
and up to 2 hectares (5 Acres) (as owner, renter, or sharecropper).
83. Marginal Farmer: A Marginal Farmer is a farmer who cultivates up to 1 hectare of
agricultural land (as an owner, renter, or sharecropper) (2.5 acres).
84. Large Farmers:A Large farmer is a farmer farming agricultural land of more than 4 hectare
and up to 10 hectares(10 acres-25 acres) (as owner, renter, or sharecropper).
85. NPCI:National Payments Corporation of India is an Umbrella Organisation, established
by the Reserve Bank of India and Indian Banks' Association, that facilitates services like
UPI Payment, Bharat Bill Pay, RuPay Card, FASTag, etc.,
86. IMPS:Immediate Payment Service (IMPS) is an instant interbank electronic fund transfer
service.There is a difference between NEFT and IMPS when it comes to the time it takes
to complete the transfer. IMPS is a real-time fund transfer service. The transactions get
processed immediately. On the other hand, the time taken in NEFT is subject to cut-off
timings and batches of the banks.
87. SWIFT:SWIFT, or the Society for Worldwide Interbank Financial Telecommunications, is
a global messaging system that is used to facilitate transactions between banks across
national borders.
88. RTGS:Real Time Gross Settlement. RTGS system is a funds transfer mechanism where
transfer of money takes place from one bank to another on a “real time” and on “gross”
basis. This is the fastest possible money transfer system through the banking channel.
89. NEFT:National Electronic Funds Transfer (NEFT) is a mode of online funds transfer that
is introduced by the Reserve Bank of India (RBI). It quickly transfers money between
banks throughout India. RTGS is real time funds transfer, NEFT is settled in batches.
RTGS minimum amount Rs.2.00 lacs. NEFT no minimum.
90. BHIM:Bharat Interface for Money (BHIM) is an app that lets you make simple, easy and
quick payment transactions using Unified Payments Interface (UPI).
91. APBS: Aadhaar Payments Bridge System (APBS) is used for crediting DBT transactions
for Government/ Government agency disbursements. DBT aims to transfer subsidies
directly to the people through their bank accounts.Direct Benefit Transfer or DBT is the
mechanism of transferring subsidies provided by Government of India,directly to the
people through their linked bank accounts.
92. NPA :(Non Performing Assets): A non performing asset (NPA) is a loan for which the
borrower defaulted the repayment for more than 90 days. The principal or interest payment
remained overdue for a period of 90 days.
93. Recovery of NPA:NPA can be recovered through Prompt Corrective Action (PCA),LokAdalats,
Securitization & Reconstruction of Financial Assets & Enforcement of Security Interest Act
2002 (SARFAESI Act), DRTs and DRATs,Transfer to Assets Reconstruction Companies (ARC).
94. PCA (Prompt Corrective Action):PCA is a system that the RBI imposes on banks showing signs
of financial stress. The regulator considers banks as unsafe if they fail to meet the standards
on certain financial parameters.When RBI puts a bank on its PCA watchlist, it imposes two
 types of limitations on it – mandatory and discretionary. These include restrictions related to
the expansion of a branch, dividend and director’s remuneration and so on.
95. NPA affects on the Banks : Provisioning to be done for NPA accounts. Provisioning refers
to the practice of setting aside funds from a bank's profits to cover potential losses arising
from bad loans or non-performing assets (NPAs). The banks suffer a huge loss because of
large provisioning ,that lowers their profit margins. The banks get a negative image,
therefore, the accountholders might want to withdraw their money from the banks.
96. SARFAESI Act:The SARFAESI Act provides that banks can seize the property of a
borrower without going to court except for agricultural land. SARFAESI Act, 2002 is
applicable only in the cases of secured loans where banks can enforce underlying
securities such as hypothecation, mortgage, pledge etc.
97. FEMA:The Foreign Exchange Management Act, 1999, is an Act of the Parliament of India
with the objective of facilitating external trade and payments and for promoting the
orderly development and maintenance of foreign exchange market in India".
98. AML:Anti Money Laundering: Money Laundering means dirty money is converted into
legitimate money, using the banking channels. Anti Money Laundering rules, to help
detect and report suspicious activity including the terrorist financing.
99. Stand Up India Scheme:The Stand-Up India scheme is to facilitate bank loans between 10
lakh and 1 Crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower
and at least one woman borrower per bank branch for setting up a new Project.
100. ODOP:(One District - One Product) One Product from each District of the country for
enabling holistic socioeconomic growth across all regions. The ODOP Initiative has identified
a total of 1102 products from 761 districts across the country.
101. PMJDY:PRADHAN MANTRI JAN DHAN YOJNA-PMJDY brings about the objective
of financial inclusion for all by providing basic banking accounts with a debit card with
inbuilt accident insurance.
102. Schemes for Farmers: Pradhan Mantri FasalBima Yojana (PMFBY), Weather Based
Crop Insurance Scheme (WBCIS), Coconut Palm Insurance Scheme (CPIS)RythuBandhu -
Farmers Group Life Insurance Scheme: (Rythu Bhima)etc.,
103. PPF: Public Provident Fund Scheme: It is Deposit scheme for 15 year tenor. It
provides the benefit of Tax Savings, and maturity amount is also exempted from Tax. A long
term Tax efficient savings scheme. Maximum Rs.1.50 lacs can be invested in a FY.
104. SCSS: Senior Citizens Savings Scheme: Senior citizens with 60 years and above age
can invest up to Max Rs.30.00 lacs from their terminal benefits in this scheme which yields
better rate of Interest. However Interest earned is taxable if it exceeds Rs.50000/- in a FY.
105. KCC: Kisaan Credit Card:It is a working capital loan provided to farmers. The limit is
fixed basing the area of cultivable land, crops raised, and scale of finance. Consumption
needs also taken care.
106. Agniveer Scheme:The Agnipath Scheme is the only route to serve in the military. The
recruits named Agniveers serve for a tenure of four years that include training for six months
followed by 3.5 years deployment. After retirement from the service, they will have the
opportunity to apply to continue in the armed forces.
107. MUDRA Scheme:MICRO UNITS DEVELOPMENT & REFINANCE AGENCY-It is scheme
launched by the Prime Minister in 2015 for providing loans up to 10 lakh to the non-
corporate, non-farm small/micro enterprises. Three Categories: Shishu: Covering loans up to
 Rs.50000/-Kishore: Covering loans above Rs.50000/- up to Rs.500000/-Tarun: Covering loans
above Rs.500000/- up to Rs.1000000/-
108. MSME schemes: Credit Linked Capital Subsidy Scheme for Technology Upgradation.
Credit Guarantee Scheme. ISO 9000 certification and reimbursement scheme. Participation
in International Fairs.
109. New Education Policy: The New Education Policy (NEP) 2023 will revolutionize
education by transforming student learning and redefining the teacher's role. The 10+2
structure is replaced by a 5+3+3+4 model. Foundation Stage (5 years), Preparatory Stage (3
years),Middle Stage (3 years),Secondary Stage (4 years). This extension offers students more
time for in-depth subject exploration, skill specialization, and holistic development.
110. MGNREGA:The Government of India passed the Mahatma Gandhi National Rural
Employment Guarantee Act, 2005 in September, 2005. The Act gives legal guarantee of a
hundred days of wage employment in a financial year to adult members of a rural household
who demand employment and are willing to do unskilled manual work.
111. Lead Bank Scheme (LBS):The lead bank acts as a leader for coordinating the efforts
of all credit institutions in the allotted districts to increase the flow of credit to agriculture,
MSE and other economic activities with the district being the basic unit in terms of
geographical area.
112. Venture Capital:Venture capital (VC) is a form of private equity and a type of
financing that investors provide to startup companies and small businesses that are believed
to have long-term growth potential. Venture capital generally comes from well-off investors,
investment banks, and any other financial institutions.
113. Angel Investment:An angel investor is a wealthy person who invests his or her own
money in a company—usually a start-up—that is in the early stages of development.
114. Capital Expenditure:Capital expenditure is the money spent by a firm to acquire
assets or to improve the quality of existing ones.An example of Capital Expenditure is
purchasing a new building, New Machinery etc.It is a long-term investment that provides
future benefits.
115. Trade Deficit:Trade Deficit is the value of goods a country imports is greater than the
value of goods it exports.
116. Fiscal Deficit:Fiscal Deficit occurs when the government spends more than it earns
or beyond its resources. Total government receipts minus total expenditure.
117. LIBOR: The London Interbank Offered Rate (LIBOR) was a benchmark interest rate at
which major global banks lent to one another in the international interbank .Reserve Bank of
India (RBI) asked banks and other regulated entities to take steps to ensure a complete
transition away from the London Interbank Offered Rate (LIBOR) from July 01, 2023.
118. Amortization:Amortization is used in the process of paying off debt through regular
principal and interest payments over a period of time.Example, a mortgage or a car loan—
through installment payments.
119. Fiscal Policy:FISCAL policy is the use of government spending and taxation to
influence the economy.Governments uses fiscal policy to promote strong and sustainable
growth and reduce poverty.
120. Dis-investment:Disinvestment refers to the selling of the government's stake in
public sector undertakings (PSUs) and other assets. It is a process by which the government
sells a part or whole of its shareholding in a public sector enterprise to private entities or the
 public.The importance of disinvestment in India includes: Financing the fiscal deficit. Raising
funds to enable large-scale infrastructural development.
121. FPI: (Foreign Portfolio Investment):Foreign Portfolio Investment or FPI refers to the
investment made in the financial assets of an enterprise, based in one country, by the
foreign investors. FPI is more short-term or medium-term in nature.
122. IPO:An IPO is an initial public offering. In an IPO, a privately owned company lists its
shares on a stock exchange, making them available for purchase by the general public.
123. Provisioning in Banking:Provisioning refers to the practice of setting aside funds
from a bank's profits to cover potential losses arising from bad loans or non-performing
assets (NPAs).
124. Cost of Funds:The cost of funds is the amount of money a company pays to run its
operations. For Example, the cost of funds for a financial institution is the interest it pays to
its customers for the savings accounts. The lower the cost of funds, the better the returns.
125. Line of Credit:A line of credit is a type of loan that allows the borrowerto draw
the money up to a pre-set limit. The borrower can take money out as needed until the
limit is reached. As money is repaid, it can be borrowed again within the limit set.
126. Letter of Credit:A letter of credit, is a letter from a bank guaranteeing that a buyer's
payment to a seller will be received on time and for the correct amount.It is a payment
mechanism used in international trade to provide an economic guarantee from a
creditworthy bank to an exporter of goods.
127. Authorized Capital:Authorised Capital is the maximum amount of share capital that
a company is allowed to issue to its shareholders as per its constitutional documents.
128. Paid-up Capital:Paid-up capital is the amount of money a company has received
from shareholders in exchange for shares of stock. Paid-up capital is created when a
company sells its shares on the primary market directly to investors, usually through an
initial public offering (IPO)
129. Balance Sheet:A balance sheet is a financial statement that contains details of a
company's assets or liabilities at a specific point in time.The purpose of a balance sheet is to
give interested parties an idea of the company's financial position, in addition to displaying
what the company owns and owes.
130. CIBIL:The Credit Information Bureau (India) Limited (CIBIL) is the most popular
among the credit information companies licensed by Reserve Bank of India. CIBIL Score is a
three-digit numeric summary of the prospective borrower’s credit history.Higher CIBIL score
usually indicates a lower risk of default, high creditworthiness.
131. SHG:Self-help groups are informal groups of people who come together to address
their common problems. One important characteristic of self-help groups is the idea of
mutual support – people helping each other.To provide micro-finance to groups is normally
the primary objective of a Self Help Group.
132. JLG: (Joint Liability Groups)-To augment flow of credit to tenant farmers cultivating
land either as oral lessees or share croppers and small farmers who do not have proper title
of their land holding, through formation and financing of JLGs.
133. Assets & Liabilities:A balance sheet can be divided into two categories: assets and
liabilities. Assets are the items that the company owns that can provide future economic
benefit. (EX: Plant and machinery etc). Liabilities are the items that a company owe to other
 parties. (Ex: Salaries payable, Taxes payable etc). For a Bank, Deposits are on Liabilities side
and Loans are on the Assets side
134. BASEL NORMS:With the goal of strengthening the international banking system,
Basel norms (Best Banking Practices), put an effort to coordinate banking regulations across
the globe. BASEL is a place in Switzerland.
135. Dollar Rate:The dollar rate is the rate at which another country's currency converts
to the U.S. dollar, so it can be said that: as how many units of currency are needed to
purchase 1 U.S. dollar.EX: 1 DOLLAR is equal to Rs.83.00 INR. Means it is required Rs.83.00 to
purchase one US Dollar.
136. LIC Privatization: In 2022, the Government of India sold off 3.5% of LIC shares
through public offering.It is a small portion only and hence it is not fully privatized.
137. GST:The goods and services tax (GST) is a value-added tax (VAT) levied on most
goods and services sold for domestic consumption.GST is a unified tax system that replaced
multiple indirect taxes levied by both the Central and State Governments.
138. GDP:Gross domestic product; the total value of all the goods and services produced
in a country in one year is known as GDP. GDP growth rate is an important indicator of the
economic performance of a country.
139. Inflation:Inflation occurs when the prices of goods and services rise.
140. Deflation: Opposite to Inflation. Deflation is a general decline in prices for goods and
services.
141. Bitcoin:Bitcoin (BTC) is a cryptocurrency, a virtual currency, other than regular
currency.Bitcoin is a type of currency that exists only online.
142. Crypto Currency:: A cryptocurrency is a digital currency.For a central bank, if third
parties are involved in valuing and distributing the currency, which is beyond their control,
then it is essentially lost control to those players, which is not a good sign.
143. Budget:It is plan and a statement by a government saying how much money it plans
to spend on particular things in the next year and how it plans to collect money.
144. Privatization of Banks:The privatization of banks in India will lower the government’s
stake.Privatization is a procedure where the government loses control of the management
and ownership of the state-owned company and transfers it to a Private entity.Privatizing of
two major banks expected to generate 1.75 lakh crore of capital into the exchequer of the
government.
145. FDI:Foreign direct investment or FDI means-international investment in which the
investor obtains a lasting interest in an enterprise in another country. Long term in nature.
146. Deposit Mobilization: Basic rule of banking is accepting deposit for the purpose of
lending. Hence it is a prime function of banks to mobilise deposits. For the customers
deposits/ savings yield interest. Interest earned on the Loans is the main source of income
for banks.Higher savings contributes to higher investment. This in turn, leads to higher
economic growth. Given this background, deposit mobilization plays a vital role for banks as
well as economy.
147. Gold Loan in simple terms:Gold loans are used for many purposes, like meetings
immediate financial requirements, managing medical emergencies, supporting agricultural
purposes in rural areas, funding educational expenses, and supporting various business
activities, etc., For taking a Gold Loan, the bank takes your gold as collateral for the period of
 the loan. Banks charge an interest rate, and once you repay the entire loan, the bank returns
your jewellery.
148. CAR:Capital Adequacy Ratio (CAR) is the ratio of a bank's capital in relation to its risk
weighted assets. RBI fix the ratio for the banks to follow.RBI's current guidelines, public
sector banks should have a CAR of at least 12%.The regional rural banks should also have
capital adequacy above the regulatory minimum level of 9%.
149. Banking Correspondents concept:Banking Correspondents (BCs) are
individuals/entities engaged by a bank in India (commercial banks, Regional Rural Banks
(RRBs) and Local Area Banks (LABs)) for providing banking services in unbanked / under-
banked geographical territories. Opening Bank branches everywhere is not possible/
feasible, hence Banks use the services of Banking Correspondents through which banking
services are offered to remotest areas.There are more than 13 lakhs BCs are working in
India.SBI is having 76000 BCs working. HDFC is having 11000 plus BCs.The individual at work,
as Business Correspondent, acts as an agent for selling banking products and services, opens
accounts, and executes deposit, payment and transfer transactions.
150. Green Revolution:In 1966-67 a new era was established due to a technological
change by green revolution for the improvement in agriculture in India.Green revolution
means rapid increase in agricultural production by the use of seeds of high yielding variety,
chemical fertilizers and new technology.
151. Global warming: Global warming is an aspect of climate change, referring to the
long-term rise of the planet's temperatures. It is caused by increased concentrations of
greenhouse gases in the atmosphere, mainly from human activities such as burning fossil
fuels. Green House Gases are responsible for increasing the temperature of the atmosphere.
Ex: Carbon dioxide, methane etc., Fossil fuels means non-renewable energy sources such as
coal, coal products, natural gas, crude oil, petroleum products etc.
152. 3-Govt Schemes: PM UjjwalaYojna : Providing LPG cylinders at free of cost to below
poverty woman. Stand Up India : Providing Loan support to SC/ST& woman entrepreneurs.
Mudra Loans: Providing loan support for Small & Micro entrepreneurs for business purpose.
153. Banks work under different Acts.Main one is Banking Regulation Act.& RBI Act.
Other Acts some examples: NI Act, Contract Act, PML Act etc..
154. White Label ATMs are those operated by corporations or private individuals that
want to earn a fee from banks for transactions done by their clients. ExampleTATA group's
INDICASH.
155. DICGC:Deposit insurance and credit guarantee corporation.The DICGC insures
principal and interest upto a maximum amount of ₹ 5 lakhs. Obtaining deposit insurance
cover is mandatory for all banks licensed by RBI.
156. Difference between Commercial Bank & RRB: Regional Rural Banks (RRB) are
operating at regional level in different states of India. RRBs present only in rural and semi-
urban areas. Commercial banks operate across the country, in rural, semi-urban and urban
areas. RRBs are funded by Govt, Commercial Banks & State Govt, whereas, commercial
banks are funded by Govt and shareholders.The scope of the RRB is limited to agricultural
finance, small sector loans, handy crafts and other small sector loans, while the scope of
commercial banks is broad, offering not only agricultural finance but also housing loans, car
loans, letters of credit, loans to large companies and for many activities.
157. RRBs are established for the reason,to provide financial assistance to farmers,
Medium and Small Enterprises (MSMEs), local craftsmen, and artisans for agriculture,
industries, trade, commerce, and their economic development.
158. Agriculture allied activities:The main activities under agriculture allied sectors are
livestock (including dairy, sheep, goat, poultry and piggery), fisheries (marine, inland
and aqua farming), horticulture (including fruits, vegetables, flowers, spices, aromatic
and medicinal plants) and sericulture sector.
159. Leadership Qualities: One definition of leadership is to “inspire, influence and guide
others to participate in a common effort.” Good leaders don't just prompt orders or hand
out directives with no explanation. Instead, they use effective communication and
motivation techniques to facilitate action by their teams.A true leader leads by
example, having strong relationships with individuals in the team and ensuring that all
reach their full potential while, importantly, achieving organizational goals.
160. Inflation is controlled by RBI.It is the responsibility of a nation's central bank (RBI) to
prevent inflation through monetary policy. Monetary policy primarily involves changing
interest rates to control inflation.
161. PMFBY: Pradhan Mantri FasalBima Yojana (PMFBY) is a crop insurance scheme with
low premium. It aims at supporting sustainable production in agriculture sector by way of -
providing financial support to farmers suffering crop loss/damage arising out of unforeseen
events.
162. Sapthagiri Grameen Bank:It is sponsored by Indian Bank. Head office is in
Chittoor.SapthagiriGrameena Bank has been formed with the merger of Sri
VenkateswaraGrameena Bank, Chittoor, Chittoor district and KanakadurgaGrameena Bank,
Gudivada, Krishna District.
163. Agro based Processing Industry: Agro processing involves the processing of raw
materials from the field and the farm into finished products. Example: Textile Mills, Sugar
Mills, Paper Mills, Tea & Coffee processing etc.,
164. Make in India' initiative was launched globally in September 2014 as a part of India's
renewed focus on Manufacturing. The objective of the Initiative is to promote India as the
most preferred global manufacturing destination.
165. Defence manufacturing, electronics, automobiles, telecom, railways are some of the
important sectors which received a boost from the Make in India initiative.
166. Cross selling:Cross-selling is a sales technique involving the selling of an
additional product or service to an existing customer. Selling add on products to the
existing customers.
167. Communication: Communication is defined as the ability to convey or share ideas
and feelings effectively. Several experts agree that communication skills include:
Conveying messages without misinterpretation or misleading others. Banking is a
service oriented industry hence proper communication skillsare required to understand
the customer needs and to respond. More over bankers have to interact with number of
customer with varied background, and it is essential to address their needs.
168. Sharia Banking:Sharia banking is the same as Islamic banking, where banks
adhere to Muslim principles and the teachings of the Quran. It is considered that Sharia
banking to be a more ethical form of banking, because investing in restrictive practices
is prohibited.
169. RRBs and Housing Loans: Yes, RRBs provide Housing loans. NHB provides
refinance facility to RRBs with certain guidelines.
170. Retail banking:Retail banking, is also called personal banking or consumer
banking, offered to individual customers rather than large corporations. Retail banks
offer products like savings accounts and debit cards to the general public, and working
in retail banking requires high levels of customer service.
171. Challenges of Banking industry: The Raise in Non Performing Assets, increasing
default trends in loan segment, Increase in number of frauds (both online frauds as well
branch level frauds), meeting regulatory requirements (EX: KYC, AML stipulations etc), Data
Privacy, Increasing Customer Expectations, Technology upgradation, Talent Management.
172. Amalgamation Of Andhra Bank & Corporation Bank Into Union Bank Of India.
173. Green Pin for debit card or credit Card eliminates the need for paper letters sent by
banks containing the PIN of the debit card. There's no risk of the letter containing the PIN
getting displaced or stolen. It is also needed to be noted that the Green PIN is usually sent
through SMS.
174. The Warbetween Ukraine & Russia definitely affected the prices of diesel, petrol,
wheat, vegetable oils and many other commodities.Russia's invasion of Ukraine, India's retail
inflation jumped to 8-year high of 7.79%, even RBI is struggling to bring it down.This was
mainly fuelled by the massive surge of crude oil prices and disruption of supply chain of the
same. Sanctions on Russia also having impact on supply.
175. AP shares it boundary with Tamil Nadu, Karnataka, Telangana&Odisha.The eastern
boundary is coastline along the Bay of Bengal.
176. Data Recovery & Data Mining:Data recovery is the process of restoring data that has
been lost. Data recovery typically refers to the restoration of data to a desktop, laptop,
server or external storage system from a backup.
Data Mining:Data Mining is mainly relating to analyzation of data from the available
database. It helps to discover the patterns and predicts likely outcomes. Data mining helps in
creation of actionable information.
177. Check Dams: Check dam are small dams used to control soil erosion and help to
increase ground water level. A check dam is a small dam constructed across a drainage, flow
of water or channel to lower the velocity of flow. Reduced runoff velocity reduces erosion
and allows sediments to settle out.
178. BRICS:The term BRICS is an acronym for Brazil, Russia, India, China, and South Africa.
179. SEBI:SEBI stands for Securities and Exchange Board of India. It is a statutory
regulatory body that was established by the Government of India in 1992 for protecting the
interests of investors investing in securities. Also, it regulates the securities market.It works
under the administrative domain of Ministry of Finance.
180. Under New Tax Regime, full tax rebate on an income up to ₹7 lakhs has been
introduced. Whereas, this threshold is ₹5 lakhs under the old tax regime. This means that
taxpayers with an income of up to ₹7 lakhs will not have to pay any tax at all under the new
tax regime.However, under the new tax regime several exemptions and deductionsare not
available.Under old tax regime, there are several exemptions and deductions available, Sec
80C savings up to Rs.1.50 lakhs, HRA and LTA, that can reduce your taxable income and
lower tax payments.
181. Stagflation is the combination of high consumer price inflation and stagnant
economic growth, usually accompanied by rising unemployment. Stagflation risk
remains low for India because of stability in the economy.
182. CASA:Current Accounts & Savings Accounts deposits are known as CASA
deposits. CASA ratio of a bank is the ratio of deposits in current, and saving accounts to
total deposits. A higher CASA ratio indicates a lower cost of funds, because banks do not
usually give any interests on current account deposits and the interest on saving
accounts is usually very low at 3-4%.
183. Bullion Market:A bullion market is a market where traders trade in precious
metals like gold and silver. A bullion market is a place where exchanges of gold and
silver take place over the counter.
184. Cashless Economy:Cashless economy is an economy where transaction can be
done without physical cash as a means of exchange of transaction but rather with the
use of credit or debit card payment for goods and services.
185. Israel- Palestine war:The Israel-Palestine crisis could affect global crude oil supply,
which may hit Indian households' budgets. Over the last week, the supply of crude oil has
been impacted and prices have started rising trend.Exports of consumer durables to the
middle east countries get affected. (Smart TVs, Automobiles etc)
186. Economic Survey:The Economic Survey is an annual report that underscores the
condition of different sectors of the economy and suggests reforms that should be
undertaken in the Budget to accelerate growth.
187. Customer Service: Customer service is the support that is offered to the customers
both before and after they buy and use the products or services. Best Customer service, that
helps the customers have an easy and enjoyable experience.Good customer service always
starts with a human touch.Good customer service also means consistently meeting
customers' expectations. Also,it should be quick, easy, personalized, and empathetic.
188. Customer Education: With proper customer education, banks can give their
customers a better education about the products and services so that they make better
financial decisions.
189. Steps to increase farmer’s income:
Increase in crop productivity.Along with growing crops, keepinglivestock can add surplus
income.Reduction in cost of production. Diversification to high value agriculture.Surplus
manpower can be used for non-farm occupations.
190. Rural Economy: Rural economy massively relies on agriculture (more than 50% of
the population directly or indirectly depend upon agriculture), which is dependent on
unpredictable monsoon and prone to droughts and floods. This leads to low and erratic
income for farmers and agricultural workers.
191. Teamwork is working closely with other people to achieve a shared goal. Every
person brings their own knowledge, skills and experience. Identifying and utilising every
team member's strength makes the team work, so that you can successfully reach that goal
together.
192. For this type of question answer is YES, I always want to be a team player. I enjoy
working closely with my team. I utilize my reliability, communication skills, positive attitude,
so that I can become a key contributor.As a team player I am ready, willing, and able to
support the team.
193. Previous interview learnings: I have started focussing on my ability to learn new
things. Identifying my shortcomings and areas that need improvement and willing to make
the necessary changes to develop my skills.(Practice your answer. Use simple, active
statements. Provide only necessary details. Quantify your experience. Explain the positive
results of your learning)
194. Credentials to work as a PO: I do have the traits to become a PO. I have the curiosity
and eagerness to learn new things. I have the ability to adapt and adjust to changing
situations. I have good time-management skills. I have strong work ethics and determination
to succeed. I have the creativity and innovative thinking. I have good communication skills
and ability to work in teams.
195. Stress Management: While responding to this question, you are required to share an
example – how you succeeded despite being in a stressful situation, or how you solved a
problem or an issue that cause the stress. At work situation, when some stress is felt, to take
a short break, take alittle breather, drink a glass of water, come back and resume the work.
Small break will give us time to think rationally. Talking to the senior colleagues, and taking
support from junior colleagues. Practicing Yoga & Meditation helps the body to cope with
stressful conditions.
196. Strengths: My strengths are being an honest person, I can use my time effectively, I
can easily adapt myself in any working environment. I am a team man. My strength is I am a
self-motivated person and a quick learner and also, I do my work sincerely.
197. Customer Relationship means always willing to solve problems for
customers,interacting with customers &work with customers to support their banking needs
all the time. Empathising with customers can be the best way to maintain the customer
relationship in the long run.Going the extra mile to provide exceptional service.
198. Work experience:Please correlate to your previous work experience. Ex:I have some
strong work experience that will help me with this job if I am successful. I worked for a year
as an assistant/ manager…etc . That helped me to get confidence in talking to the public,
improving my communication skills, handle different type of people, different situations,
gaining experience in problem solving, …With the previous work experience, I can identify
myself where I will need to work hard…..If you have no previous work experience, tell the
same.
199. Rural posting:Interviewers often ask about geographical preference to see how
interested you are in the job and whether you will work at a different location.The best way
to answer this question is to prepare in advance by considering your answer and rehearsing
it. Ex: It is an opportunity to serve the rural people, it is an opportunity to seefresh places
and meeting new people, it is an opportunity to learn about the rural cultural richness. It is a
challenge to adopt to any situation, adopt to live in any geographical location etc…
200. News papers: Those who read the newspaper to keep up with current events and
general knowledge must take daily notes. Newspapers provide news about a country's
economic situation, sports, games, entertainment, trade and commerce. Reading newspaper
makes a good habit and it is already part of the modern life. This habit will widen our
outlook and will enrich our knowledge. Reading newspaper makes us well informed.
201. Divorce cases: With easy access to technology and social media, which lures the
young people into fool’s paradise by creating hype about different life styles. Reality is
always cruel. The failure to meet the expectations about the desired life styles, forces them
to take divorces. Difference of opinions are not allowed to settle because of gut ego feelings,
ultimately forcing to take divorce.
Now a days it has become easier for individuals to cheat on their spouses, leading to a rise in
divorce case rates.TV serials also polluting the minds with scripting bad messages.
Financial issues are one of the main things couples fight about. Being under financial stress
can strain the relationship, leading to fights and general unhappiness. Financial problems
can also lead to the breakdown of a marriage.