Banking jobs are some of the most reputed among other jobs. Annually, thousands prepare for banking examinations and bank interview questions and answers for a chance to work in a bank. The interview process will judge the candidate’s aptitude and ability to survive in a bank. There are so many banking exams such as SBI PO, IBPS Clerk, IBPS PO, IBPS RRB, and RBI Grade that a candidate can apply for to get a job at one of the nation’s reputable banks.
When a candidate has the right qualifications, work experience, and attitude to work in a bank, it is important to perform well in the interview. The deciding factor would be prepared well with a list of intended bank interview questions and answers. Include basic banking terms, the latest banking news, and bank products and services.
The Indian banking sector is old and traces back to the mid-18th century. The first known bank was the Bank of Hindustan, set up in 1770 and liquidated in 1829-1832. After that, the General Bank of India was formed in 1786 but was liquidated in 1791. Since then, the banking sector has changed immensely and is one of Asia’s largest and fastest growing.
India has 12 public sector banks, 22 private sector banks, 46 foreign banks, and 56 regional rural banks. There are also over 1,485 urban cooperative banks and around 96,000 rural cooperative banks. These banks together contribute to a total of 2,13,145 ATMs in the country.
India’s banking sector contributes greatly to the development of the country. They will enforce the monetary policy and maintain economic growth without triggering inflation. The banking industry also requires thousands of employees, making this massive sector work smoothly. Annually, thousands of students prepare for bank job interview questions and apply for a chance to achieve sustainability in their careers.
When discussing the benefits of working in a bank, most people think of pay and job security. However, there are many more reasons why graduating students should consider preparing for a banking job.
The banking industry probably has some of the best salaries in the country. Even the entry-level jobs at banks are higher than jobs in other sectors. For example, the basic Probationary Officer’s salary in the State Bank of India is INR 41,960/- monthly. There are also regular increments before candidates get promoted.
One of the top reasons why everyone advocates for a banking job are its job security. Everyone wishes to be secure in their jobs, and the banking sector provides just that. Individuals face interview questions for banking jobs and get trained to work no matter the state of the economy. Unless the individual does something illegal or unethical, banking employees rarely lose their jobs.
Preparing for bank interview questions and answers, taking examinations, and sitting for interviews before finally landing a bank job, takes time and effort. Society and other people realize this and place bank jobs in high regard. Working in a bank is a social prestige aspect because there are regular salary increments and promotions.
Banking jobs, in general, have a long career path. Once employed, individuals experience stable careers where they can advance to management-level positions. There are also opportunities to transfer between departments. Despite being stressful, most employees will retire from their bank jobs.
Bankers can work in different industries if they so wish to. During interviews, banking questions and later training are designed to equip individuals with skills that will work well in other jobs. Some such skills are the ability to look at details, quick decision-making, leadership, and strong communication skills.
With the banking examination season coming up,
it is important to brush up on bank interview questions and answers. To start the preparation, one must know the type of banks in India.
| Type of Bank | Description |
| Central Bank | The central bank is the bank that controls the activities of all the other banks in the country. In India, the Reserve Bank of India is the Central Bank. Among its many functions, it will issue currencies, implement the monetary policy and look over the entire financial status of the country. |
| Cooperative Bank | Co-operative banks are financial entities that work cooperatively, meaning all customers are also part owners. An elected committee runs them on a no-profit and no-loss basis. Co-operative banks provide finance to local entrepreneurs and small-scale businesses. There are two types of cooperative banks, urban and state. |
| Commercial Bank | Unlike co-operative banks, the banks that operate on a profit basis are called Commercial Banks. They accept deposits from their customers and provide loans to those requiring them. Commercial banks are either owned by the central or state Government or are privately owned. |
| Small Finance Bank | Another type of bank that frequently banking questions for interviews are small finance bank. These banks provide finance to micro industries, small businesses, and small farmers. All functions of commercial banks are also done by the small finance banks, providing loans. |
| Payments Bank | A popular banking-related interview question is about Payments Bank. This is a new type of bank in India that does not issue any credit or give out loans. They accept deposits from customers of up to INR 2 lakh and have ATM and debit cards with net banking features. |
The first commonly asked banking job interview question is an introduction of the candidate. This is typically a question to start the conversation and get a brief overview of the candidate’s profile. Answer the name, educational qualifications, and work experience in short. Do not make this answer too long and also include only the essentials.
This is one bank interview question and answer requiring a little thought. Do not answer by saying the pay grade and also career progression. Discuss why the banking sector is important, its contribution to the economy, and the growth rate. Stating some figures will also help here.
This is a pretty straightforward bank job interview question. Answer in brief about the types of accounts.
This is one interview question for banking jobs requiring knowledge of RBI’s KYC procedure. This states that each customer must submit personal documents to prove their identity, address, etc. Specifically, one must submit a PAN or Aadhar card for identity proof. The latter can also be submitted for address proof along with utility bills.
There are broadly three types of commercial banks.
The Annual Percentage Rate or APR is the annual interest charge from the bank on its customers. This charge is levied when customers use banking services like credit cards and loans. Simply put, it is the cost one must pay to borrow money from banks.
For this bank interview, questions and answers are simple. Amortization refers to paying off loans or mortgages in regular instalments. This payment is made to repay an original principal amount with interest. Negative amortization, on the other hand, is the opposite of regular amortization. Here, the principal amount does not decrease with every payment but increases.
Debt to income ratio is an important banking interview question and answer for freshers. It compares how much one earns vs how much one owes. Here, the basic income of individuals is taken into account, as also the monthly bills like rent and mortgage.
Anyone preparing for bank interview questions and answers must know what a line of credit is. It is a credit for a flexible loan given by banks to customers. This is for a specific amount and must be repaid immediately with interest.
Another basic banking question that interview candidates should know is the type of loans available at commercial banks. There are either secured or unsecured loans. For the former, the individual provides security to avail of the loan. Some examples of secured loans are home loans, property loans, loans against insurance, gold loans etc. Unsecured loans do not require any security. For instance, personal, Flexi, vehicle, and unsecured loans.
Next on the list of bank interview questions and answers for freshers are interbank deposits. This is an arrangement of two banks whereby one can hold funds for the other. The bank-to-bank transfer is also used for quick funds and requires opening an account beforehand.
One of the easier bank interview questions and answers is about a home equity loan. This is a home loan taken out after giving the equity in the home as collateral. Failure to repay the loan entirely means foreclosure of the home.
There are several types of fixed deposits, besides regular fixed deposits, which must be discussed in this bank interview questions and answers. Each FD also has its own features.
Among bank-related questions, understanding what non-performing assets are is important. This term refers to a loan for which payment has not been made for over 90 days. Payment, in particular, refers to the principal amount with interest.
The first and basic bank interview questions and answers to know is the difference between a debit and a credit card. Debit cards allow withdrawals on funds already deposited by the customer. On the other hand, credit cards allow customers to borrow money that the customers repay later.
A payroll card, another important bank interview question, is a smart card given by employers to employees for wage payments. It is, however, not necessary to have a bank account to use the payroll card.
Interest rate, put simply, is the cost of borrowing money.
Many banking interview questions also ask about a line of credit. It is primarily the credit facility provided by banks.
Currently, in India, there are five major types of transferring money: RTGS, NEFT, UPI, IMPS and Digital Wallets.
This is one banking job interview question whose answer is wide and must be answered briefly. There are several roles in a bank like a bank teller, banker, loan processor, investment banker, credit analyst, mortgage consultant etc.
Banking jobs are tough to get into and involve several selection process rounds. The nerve-wracking part of the selection process is the interview round. Here, candidates are asked different bank interview questions and answers to judge their knowledge. Interviewees must aim to gather basic knowledge of the banking industry.
Preparing a list of basic bank interview questions and answers like the types of loans, fixed deposits, KYC, and payroll cards. However, diving too deep into the preparation is not essential. A little confidence and also general knowledge are what will help here.
Ans. The most important part of preparing for bank interviews is the interview questions and answers. Preparing some practice questions and making them bank specific is a good start. Practice answering the banking interview questions and answers and have some questions to ask the interviewer.
Ans. Banking interview questions and answers state that a bank has several functions. However, they are divided into three categories, primary, agency, and general utility functions. For the first function, the bank accepts deposits and gives out loans. Secondly, in the agency functions, banks collect dividends, raise capital gains, buy and sell bonds, and represent clients in other financial institutions. Finally, general utility functions include issuing bank drafts, letters of credit, travel checks, etc.
Ans. One of the most important banking interview questions and answers is the difference between commercial and private banks. Private banks are commercial banks. Commercial banks, in particular, work on a profit basis. They also include public sector banks and foreign banks.
Ans. Yes, there are both short-term and full-term banking courses that a class 12th student is eligible for. However, enrolling on a degree with a banking concentration such as BBA in Banking or B.Com in Banking and Finance is recommended.
Ans. In simple words, banks make money on interest. They charge interest on credit given to customers and also loans taken out.
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