Banking Interview Questions and Answers

Core stands for Centralized Online Real-time Exchange. Core banking is a banking service that has been provided by a group of networked bank branches where the customers can access their bank accounts and can also perform the necessary transactions from any of the member branch offices. This Application is for retail banking.

A bank is considered as a financial institution which deals with money matters. In a bank, customers can deposit and borrow money, and also it takes care of their financial stabilities.

There are two types of banks:-

• Retail Banking
• Business Banking
• Corporate Banking
• Private Banking
• Investment Banking

The commercial bank includes short-term loans to small business and individuals, withdrawals and deposit of money, savings accounts, home mortgages. The money that the customer deposits in the bank is utilized by the bank to give a business loan, personal loan, mortgages and home repair loans.

Types of Commercial Banking

• Retail or consumer banking
  Retail Banking service is provided by the bank for the general public and for the small businesses.
• Corporate or business banking
  Business banking is the service which is provided by the bank for the large-sized and middle-sized businesses.
• Securities and Investment banking
  Investment Banking does the financial transactions or creates capital, assist in mergers and acquisitions on behalf of the corporations, individuals and governments.
• Non-traditional options
  There are various non-bank entities which offer financial services precisely like what the bank provides. The non-bank entities are credit card companies, credit card report agencies, etc.

This is the favorite interview question in banking interview questions.

There are six types of account in banks:-

• Current Account:- This account is for people with businesses, firms, and companies. Any number of transactions or the amount of transactions customers can do in a day.
• Savings Account:- This account is used by the public for saving the money. Any person can open the account single or a joint account. The advantage of having a saving bank account is bank pays the interest on your savings.
• Recurring Deposit Account: -This account is opened when a person wants to save a certain amount of money every month and earn a high rate of interest.
• Fixed Deposit Account:- This account is opened when a person wants to put a specific amount for a particular time and get a high rate of interest.
• DMAT Account:- This account is used to perform the transactions on the shares.
• NRI Account:- This account is for the Indians who are settled out of India.

The documents required for KYC are:-

• Identity Proof:-Passport, Driving Licence, PAN Card, Voter's ID Card, Aadhaar Card
• Address proof:-Passport, Driving Licence, PAN Card, Voter's ID Card, Aadhaar Card
• Recent photograph

Point to be noted: Go through this Q&A very thoroughly as this is one of the critical banking interview questions.

The different ways to operate my accounts are:-

• Internet banking
• Mobile banking
• Going to the Bank
• ATM ( Automated Teller Machine)

A crossed cheque is a check which has been passed with two parallel lines on the top left-hand corner of the check. This cheque cannot be encashed at the bank’s cash counter. This cheque can only be credited to the payee's account. The crossed cheque provides the security to the payer.

CAPM stands for the Capital Asset Pricing Model. This model explains the relationship between the systematic risk and the awaited return for assets mainly stocks. CAPM is used in finance for pricing the risky securities and as a result, generating the required rate of return of an asset.

The rate of Return can be calculated by the formula:-

The price of Return=Current Rate-Initial Value