61⟩ Tell me what are open market operations?
Buying and selling of government securities and bonds in open market by Government to maintain desired liquidity levels.
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“Banking Loan Clerk Frequently Asked Questions in various Banking Loan Clerk job interviews by interviewer. The set of questions are here to ensures that you offer a perfect answer posed to you. So get preparation for your new job interview”
104 Banking Loan Clerk Questions And Answers
62⟩ Explain me bank clerking duties?
Among the most common transactions are receiving deposits, cashing checks, and handling withdrawals. To perform such operations, clerks need to perform client identification and ensure validity of signature on documents and checks.
63⟩ Explain what is (APR) Annual Percentage Rate?
APR stands for Annual Percentage Rate, and it is a charge or interest that the bank imposes on their customers for using their services like loans, credit cards, mortgage loan etc. The interest rate or fees imposed is calculated annually.
64⟩ Tell us what do you mean by ‘foreign draft’?
Foreign draft is an alternative to foreign currency; it is generally used to send money to a foreign country. It can be purchased from the commercial banks, and they will charge according to their banks rules and norms. People opt for ‘foreign draft’ for sending money as this method of sending money is cheaper and safer. It also enables receiver to access the funds quicker than a cheque or cash transfer.
65⟩ Tell me what is SWIFT?
Financial messaging network which exchanges messages between banks and financial institutions
66⟩ Tell me what is SLR?
Statutary Liquidity Ratio is the percentage of liabilities and time deposits that commercial banks need to keep with them in form of Cash, Gold or Government approved securities. Right now SLR is 22%
67⟩ Tell me what are the different types of Loans offered by Commercial Banks?
Start-Up Loans
This type of Loan is offered to borrower to start their business and can be used to build a storefront, to acquire inventory or pay franchise fees to get a business rolling.
Line of Credit
Lines of credit are another type of business loan provided by commercial banks. It is more like a security for your business; the bank allows the customer to withdraw the amount from readily available funds in an adverse time. Customer or Company can pay back over time and withdraw money again without going into the loan process.
Small Business Administration Loans
It is a Federal Agency (U.S) that gives funding to small businesses and entrepreneurs. SBA (Small Business Administration) loans are made through banks, credit unions and other lenders who partners with SBA.
68⟩ Tell me what is ‘Cheque Discount’?
Cheque discounting service is offered only by few banks. For instance, if you have a cheque of $3000 outstation and the cheque will take 7 seven days for clearance, then bank will offer you a service for early payment. The bank can make an early payment, but they will pay only for certain percentage of the actual amount, here they will pay you $2000 but they will charge interest on it and the remaining $1000 will be paid, once the outstation cheques get clear.
69⟩ Explain me the reforms that taken place in the Indian banking industry?
The Narasimham Committee laid the foundation for the reformation of the Indian banking sector. Constituted in 1991, the Committee submitted two reports, in 1992 and 1998, which laid significant thrust on enhancing the efficiency and viability of the banking sector.
70⟩ Tell me what is the difference between bank guarantee and letter of credit?
There is not much difference between bank guarantee and letter of credit as they both take the liability of payment. A bank guarantee contains more risk for a bank than a letter of credit as it is protecting both parties the purchaser and seller.
71⟩ Tell me what would you consider important for a bank clerk, being the first point of contact with customers?
Bank clerks should be highly aware of their position as the first point of contact for most customers. Clerks are the face of the company; they are presentable and professional in demeanor. They answer all queries clearly and politely.
72⟩ Tell me what is RuPay card?
RuPay is India’s own card payment system launched by National Payments Corporation of India (NPCI)
73⟩ Explain what is bank? What are the types of banks?
A bank is a financial institution licensed as a receiver of cash deposits. There are two types of banks, commercial banks and investment banks. In most of the countries, banks are regulated by the national government or central bank.
74⟩ Explain what are the different types of ‘Fixed Deposits’?
There are two different types of ‘Fixed Deposits’
Special Term Deposits: In this type of ‘Fixed Deposits’, the earned interest on the deposit is added to the principal amount and compounded quarterly. This amount is accumulated and repaid with the principal amount on maturity of the deposit.
Ordinary Term Deposits: In this type of ‘Fixed Deposits’, the earned credit is credited to the investor’s account, once in a quarter. In some cases, interest may be credited on a monthly basis.
The earned interest on fixed deposits is non-taxable. You can also take a loan against your fixed deposit.
75⟩ Tell us what is ‘Loan grading’?
The classification of loan based on various risks and parameters like repayment risk, borrower’s credit history etc. is known as ‘loan grading’. This system places loan on one to six categories, based on the stability and risk associated with the loan.
76⟩ Do you know what is Bank rate?
Rate at which RBI lends money to commercial banks without any security.
77⟩ Tell me what ACH stands for?
ACH stands for Automated Clearing House, which is an electronic transfer of funds between banks or financial institutions.
78⟩ Explain me what is Monetary Policy?
Policy by which a central authority attempts to control liquidity and interest aimed high growh rate and price stability.
79⟩ Tell me why you want to enter in Banking industry?
Because this industry is growing steadily and there would be no limit to my career growth. Further I need stability in my career.
80⟩ Tell me what is CRR?
Cash Reserve Ratio is percentage of customer's deposits with commercial banks that they need to deposit with RBI. Right now it's 4%.
