Interview Questions 2

Automated Teller Machine (ATM):
An ATM is an electronic banking outlet that allows customers to perform financial transactions without
human interaction.
Key Features:
1. Cash withdrawal
2. Balance inquiry
3. Deposit
4. Fund transfer
5. Bill payment
6. PIN change
7. Mini statement
Debit Card vs Credit Card
Debit Card:
1. Linked to checking/savings account
2. Withdraws funds directly from account
3. No credit limit
4. No interest charges
5. Transaction amount debited immediately
6. Requires available balance
7. Typically no annual fees
Credit Card:
1. Linked to credit account

2. Borrows funds from issuer
3. Has credit limit
4. Interest charges apply if not paid in full
5. Transaction amount billed monthly
6. No requirement for available balance
7. Annual fees often apply
The Securities and Exchange Board of India

(SEBI) is a statutory body that regulates the Indian securities market and protects the interests of
investors:
SEBI regulates the stock market, mutual funds, and other financial institutions. SEBI also enforces
regulations and takes action against unfair and dishonest business practices.
Protects investors;
SEBI works to protect the interests of investors by addressing grievances, raising awareness, and
promoting financial literacy. SEBI also makes stock insider trading illegal.
Sets standards and policies;
SEBI plays a role in setting standards and policies for the global securities market. SEBI is a member of
the IOSCO Board and most of its Policy and Standard Setting Committees.
Conducts investigations;
SEBI conducts investigations and audits, and orders inspections.
SEBI was established by the Government of India in 1988 as a non-statutory body, and became statutory
in 1992. The Ministry of Finance owns SEBI
The Small Industries Development Bank of India

(SIDBI) is a national financial institution that promotes and finances the development of micro, small, and
medium-sized enterprises (MSMEs):
 Established: SIDBI was established in 1990 by an Act of the Indian Parliament.
 . Financing
SIDBI provides financial support to the Micro, Small, and Medium Enterprise (MSME) sector through direct and
indirect lending. SIDBI also offers venture funding opportunities for MSMEs.
 Promoting entrepreneurship
SIDBI promotes entrepreneurship and supports emerging startups through its Fund of Funds channel.
 Technology upgradation
SIDBI helps modernize and upgrade the technology of existing units.
 Employment
SIDBI encourages employment-oriented industries, especially in semi-urban areas.
 Marketing
SIDBI helps expand marketing channels for SSI products in domestic and foreign markets.
The Pradhan Mantri Mudra Yojana (PMMY) is a scheme by the Government of India that
provides loans up to Rs. 10 lakhs to small and micro enterprises in the non-farm sector. The
scheme was launched on April 8, 2015.
Here are some details about the PMMY:

 Loan categories
The loans are categorized as Shishu (up to Rs. 50,000), Kishore (Rs. 50,001 to Rs. 5 lakhs), and Tarun
(Rs. 5,00,001 to Rs. 10 lakhs).
 Eligible borrowers
Individuals, proprietary concerns, partnership firms, private limited companies, and public companies
can apply for the loan. The applicant must have a satisfactory credit track record and not be a defaulter
to any bank or financial institution.
 Loan purposes
The loans can be used for a variety of purposes, including business loans, working capital loans,
equipment finance, transport vehicle loans, and loans for agri-allied activities.
The Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme that helps
parents save for their girl child's education and marriage. Here are some details about the
scheme:
 Eligibility
The account can be opened for a girl child by her guardian up to the age of 10. Only one account can be
opened per girl child, but parents can open up to two accounts for each of their children.
 Features
The account matures after 21 years from the opening date. The interest rate is fixed by the government
and reviewed every quarter. The current interest rate is 8.2% per annum.
 Deposits
The minimum deposit is ₹250, and the maximum is ₹1.5 lakh per financial year. Deposits can be made
in multiples of ₹50, and there is no limit on the number of deposits in a month or financial year.
 Withdrawals
Withdrawals are allowed for the girl's higher education after she turns 18 and completes the 10th
standard. The maximum amount that can be withdrawn is 50% of the previous year's balance.
The Pradhan Mantri Ujjwala Yojana (PMUY) is a scheme that aims to provide clean cooking fuel
like LPG to households that traditionally use firewood, coal, or cow dung cakes. The scheme was
launched by Prime Minister Narendra Modi on May 1, 2016 in Ballia, Uttar Pradesh.
The scheme's objectives include:

 Protecting the health of women and children by providing them with clean cooking fuel
 Empowering women, especially in rural India
‘The repo rate is the interest rate at which the Reserve Bank of India (RBI) lends money to
commercial banks. The term "repo" is short for "repurchase agreement". The repo rate is used
to control inflation and cash flow.
Current REPO Rate – 6.5%
Reverse Repo Rate:

The reverse repo rate is the interest rate at which the Reserve Bank of India (RBI) borrows money from
commercial banks. It's the rate at which banks park their excess funds with the RBI.
1. Repo rate: RBI lends to banks.
2. Reverse repo rate: RBI borrows from banks.
3. Correlated but opposite in direction.
Current Reverse REPO Rate – 3.35%
Marginal Standing Facility (MSF):
MSF is a short-term lending facility provided by the Reserve Bank of India (RBI) to scheduled commercial
banks. It's designed to meet banks' emergency liquidity needs.
Key Features:
1. Overnight lending facility
2. Collateral-based lending
3. Interest rate: Repo rate + 1% (or as decided by RBI)
4. Available to scheduled commercial banks
5. Purpose: Meet temporary liquidity shortages

Bank Rate:
The Bank Rate, also known as the discount rate, is the interest rate at which the Reserve Bank of India
(RBI) lends money to commercial banks for long-term purposes. It serves as a benchmark for the entire
banking system.
Key Features:
1. Long-term lending rate
2. Applied to loans and advances
3. Influences prime lending rate (PLR)
4. Impacts borrowing costs for banks and customers
5. Announced by RBI in monetary policy statements
Prime Lending Rate (PLR)

The Prime Lending Rate is the minimum interest rate at which commercial banks lend to their most
creditworthy customers, typically large corporations and individuals with excellent credit history.
Key Features:
1. Benchmark rate for lending
2. Applied to prime customers
3. Influenced by Bank Rate and Repo Rate
4. Varied across banks
5. Reviewed and revised periodically
Types of PLR:
1. Fixed PLR: Unchanged throughout loan tenure
2. Floating PLR: Changes with market conditions
3. Dynamic PLR: Adjusted periodically

Atal Pension Yojana (APY):
APY is a government-backed pension scheme aimed at providing financial security to Indians

in the unorganized sector. Launched in 2015, it replaces the previous Swavalamban Yojana.
Key Features:
1. Guaranteed pension: ₹1,000 to ₹5,000 per month
2. Contribution-based: 18-40 years old
3. Government co-contribution: 50% of subscriber's contribution (max ₹1,000/year)
4. Vesting age: 60 years
5. Spouse entitlement: 50% pension after subscriber's death
6. Return of corpus: To nominee after subscriber's and spouse's death
| Age | Monthly Contribution |
| --- | --- |
| 18 | ₹42-210 |
| 25 | ₹76-380 |
| 30 | ₹116-580 |
| 35 | ₹173-865 |
| 40 | ₹291-1,454 |
Pension Amount:
| Pension | Monthly Contribution |
| --- | --- |
| ₹1,000 | ₹42-291 |
| ₹2,000 | ₹84-582 |
| ₹3,000 | ₹126-873 |
| ₹4,000 | ₹168-1,164 |
| ₹5,000 | ₹210-1,454 |
The merger of banks is a particular situation when two banks club their assets and liabilities to become
one bank. The merger has many common motives like Diversification, Tax Purpose, Increase in financial
capacity, and many more. The merger may include certain challenges like Tech interaction, Human
resources, decision making, and provisions. When India faced the problem of economic slowdown
then, Nirmala Sitharaman, the finance minister, announced the ten public sector banks into four
entities to boost the economy by increasing its liquidity, combating the issue of nonperforming assets,
and diversifying the risk..
Bank Merged Banks

Oriental Bank of Commerce
Punjab National Bank
United Bank of India
Canara Bank Syndicate Bank
Indian Bank Allahabad Bank
Andhra Bank
Union Bank of India
Corporation Bank
Dena Bank
Bank of Baroda
Vijaya Bank
State Bank of Travancore
State Bank of Mysore
State Bank of Hyderabad
State Bank of India
State Bank of Patiala
State Bank of Bikaner and Jaipur
Bharatiya Mahila Bank

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Automated Teller Machine (ATM):

Debit Card vs Credit Card

1. Linked to checking/savings account

2. Withdraws funds directly from account

5. Transaction amount debited immediately

6. Requires available balance

7. Typically no annual fees

1. Linked to credit account

3. Has credit limit

4. Interest charges apply if not paid in full

5. Transaction amount billed monthly

6. No requirement for available balance

7. Annual fees often apply

The Securities and Exchange Board of India

Sets standards and policies;

SEBI conducts investigations and audits, and orders inspections.

The Small Industries Development Bank of India

Here are some details about the PMMY:

The scheme's objectives include:

Reverse Repo Rate:

2. Reverse repo rate: RBI borrows from banks.

3. Correlated but opposite in direction.

Current Reverse REPO Rate – 3.35%

Marginal Standing Facility (MSF):

1. Overnight lending facility

3. Interest rate: Repo rate + 1% (or as decided by RBI)

4. Available to scheduled commercial banks

5. Purpose: Meet temporary liquidity shortages

1. Long-term lending rate

2. Applied to loans and advances

3. Influences prime lending rate (PLR)

4. Impacts borrowing costs for banks and customers

5. Announced by RBI in monetary policy statements

Prime Lending Rate (PLR)

1. Benchmark rate for lending

2. Applied to prime customers

3. Influenced by Bank Rate and Repo Rate

4. Varied across banks

5. Reviewed and revised periodically

1. Fixed PLR: Unchanged throughout loan tenure

2. Floating PLR: Changes with market conditions

3. Dynamic PLR: Adjusted periodically

APY is a government-backed pension scheme aimed at providing financial security to Indians

1. Guaranteed pension: ₹1,000 to ₹5,000 per month

2. Contribution-based: 18-40 years old

3. Government co-contribution: 50% of subscriber's contribution (max ₹1,000/year)

4. Vesting age: 60 years

5. Spouse entitlement: 50% pension after subscriber's death

6. Return of corpus: To nominee after subscriber's and spouse's death

| Age | Monthly Contribution |

| Pension | Monthly Contribution |

Bank Merged Banks

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