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  • How to prepare for IBPS PO Interview 2017?

    Dear Readers, Welcome to the fourth part of ‘How to prepare for IBPS PO Interview 2017?‘. In this part, we will be focussing on some important topics in a Q & A format. Following are the list of questions and their answers, which can be asked in the IBPS PO Interview 2017 and in other Bank PO Interviews.

    • How many types of bank accounts are offered by banks in India?

    Generally, banks in India offer 4 types of bank accounts:
    1. Saving Bank Account: Any individual can open saving bank deposit account and can deposit and withdraw money as and when required. Interest on such accounts is calculated on a daily basis. An account holder’s PAN details are required for cash transactions exceeding Rs. 50,000/-. Usually, interest rates are around 4%.
    2. Current Account: Current Accounts are meant for businessmen and are not used for investment or saving purposes. There are no restrictions on the number of times deposits in cash/cheque can be made, or the amount of such deposits. Banks do not pay any interest on current accounts.
    3. Recurring Deposit (RD): Recurring deposit refers to placement of fixed amount of funds at regular intervals into a special term account. It helps people with regular incomes to deposit a fixed amount every month and earn interest at the rate applicable to fixed/term deposits. RD accounts are normally allowed for maturities ranging from 6-12 months. Interest is compounded on quarterly basis in recurring deposits.
    4. Fixed Deposit (FD): An account opened for a fixed period of time by depositing a particular amount of money is known as fixed/term deposit. The term ‘fixed deposit’ means that the amount of money placed is fixed and is repayable only after the specific period is complete. The main purpose of fixed deposit accounts is to enable people to earn a higher rate of interest on their surplus funds. Fixed deposit accounts may be opened for a minimum period of 7 days and maximum period of 10 years. The minimum amount required to open a fixed deposit varies with banks but is usually around Rs. 10,000.
    Must know questions and answers for IBPS PO Interview, part 1

    • What is Basic Saving Bank Deposit Account (BSBDA)?

    Banks have converted the existing ‘no-frills’ accounts’ into ‘Basic Savings Bank Deposit Accounts’. An individual is eligible to have only one ‘Basic Savings Bank Deposit Account’ in one bank, and will not be eligible for opening any other savings account in that bank. Total credits in such accounts should not exceed Rs. 1 lakh in a year. Maximum balance in the account should not exceed fifty thousand rupees at any time. The total of debits by way of cash withdrawals and transfers will not exceed ten thousand rupees in a month. The banks are required to provide a minimum of 4 withdrawals through ATMs free of charge. Interest rates on BSBDA are the same as saving bank accounts.

    • What is Capital to Risk Weighted Assets Ratio (CRAR)?

    Capital to Risk (Weighted) Assets Ratio (CRAR) is also known as Capital Adequacy Ratio (CAR). It is the ratio of a bank’s capital to its risk. CRAR is arrived at by dividing the capital of the bank with the aggregated riskweighted assets for credit risk, market risk and operational risk.
    Must know questions and answers for IBPS PO Interview, part 2

    • Define Non-Performing Assets (NPAs)?

    An asset (loan) becomes non-performing when it no longer generates income for the bank. Once the borrower fails to make interest or principal payments for 90 days, the loan is considered to be NPA. NPAs can broadly be classified into three categories:
    1. Sub-standard Assets: A sub-standard asset is classified as NPA for a period less than or equal to 12 months. This category came into effect from March 31, 2005.
    2. Doubtful Assets: A doubtful asset is classified as NPA for a period exceeding 12 months. This category came into effect from March 31, 2005.
    3. Loss Assets: A loss asset is one where loss has been identified by the bank or internal/external auditors or after RBI inspection, but the amount has not been waived wholly. In other words, it is an asset which is considered uncollectible and of such a little value that its prolongation as a bankable asset is not justified, although there may be some rescue or recovery value.

    Must know questions and answers for IBPS PO Interview, part 3

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