Hello IBPS Aspirants,
Welcome to the second part of ‘must know questions and answers before you take the IBPS PO Interview 2017′. The Institute of Banking Personnel Selection (IBPS) will be conducting the Personal interviews for IBPS Probationary Officer’s selection for IBPS PO (CWE-VI PO/MT). Here are some essential questions and theirs answers to help IBPS PO aspirants sail through the IBPS PO Interview 2017.
- What is the history of banking in India? What services do banks provide?
Banking in India, in the modern sense, originated in the last decades of the 18th century. Among the first banks were Bank of Hindustan, which was established in 1770 and liquidated in 1829-32; and General Bank of India, which was established 1786 but failed in 1791.
Following are the valuable services banks provide:
a. Safekeeping of our money and valuables. b. Financial help by way of personal loans, housing loans, vehicle loans, etc. A loan is a sum of money borrowed at a rate of interest for a set time period. The borrower has to pay back the money with interest. For example: If a student wishes to study abroad, but does not have sufficient money to pay for the course, s/he can take an educational loan from a bank.
c. Banks deal with foreign exchange and provide customers local currency in lieu of foreign notes. d. Banks also facilitate faster fund remittance facilities, including NEFT and RTGS.
- What is Statutory Liquidity Ratio (SLR)?
It is the amount a commercial bank needs to maintain in the form of cash, gold, or government-approved securities (bonds) before lending credit to its customers. SLR is determined by the RBI in order to control the expansion of bank credit.
- How is SLR determined?
SLR is calculated as the percentage of total demand and time liabilities, which a commercial bank is liable to pay to customers on their demand.
- Why is SLR needed?
With SLR, the RBI can ensure solvency (creditworthiness) of a commercial bank. It also helps to control the expansion of bank credits. By altering SLR rates, the RBI can increase or decrease bank credit expansion.
- What is liquidity adjustment facility (LAF)?
LAF is a monetary policy tool which allows banks to borrow money through repurchase agreements. LAF aids banks to address liquidity pressures i.e. cash shortages and is used by the government to ensure stability in financial markets. LAF comprises Repo and Reverse Repo transactions.
Must know questions and answers, part 1
Synonymous to Banking recruitments, Institute of Banking and Personnel Selection (IBPS) is a private agency in India. Established in 1975 as Personnel Selection Services, IBPS gained its autonomy in 1984. Gaining its prominence after a key event in the Indian Banking Sector (Nationalisation of 14 Major Banks in 1969), IBPS was entrusted to fulfill the human resource demand for the newly established branches of various Banks.
In 2015-16, a total of 1.27 crore candidates registered for various IBPS examinations. IBPS conducts recruitment exams to all Public Sector Banks, SBI, Associate Banks of SBI, LIC, RBI, NABARD, SIDBI and Insurance companies.
The Common Written Evaluation (CWE) conducted by IBPS is a must for anyone who wants to take up a job in any public sector and Regional Rural Banks for posts varying from clerk to probationary officer and management trainee.