Answers to The Most Common Banking Interview Questions

Among the responsibilities of a commercial bank are the following:

• Deposits: At commercial banks, clients can make savings deposits, fixed deposits (FDs), and current deposits.
• Loans: Offering loans is one of a commercial bank's most important duties. They generate money by collecting interest on the credit they extend to their customers, who can choose from a range of loans such as personal, auto, house, and business loans.
• Provide locker facilities: Business banks provide lockers to clients who want a safe place to store their treasured items.
• Exchange of Securities: Commercial banks also deal in bonds and other securities.
• Transactions involving foreign exchange: Individuals and organisations that export or import items from other countries can get foreign currency from commercial banks. Banks with a foreign exchange trading licence may conduct such operations.

An example of a financial entity with authorisation from the government to take client deposits and grant loans is a bank. Wealth management, currency exchange, and safe deposit boxes or security boxes for the storage of valuables like jewellery are additional financial services provided by banks

Retail banks, commercial or corporate banks, Investment banks, agricultural banks, and cooperative banks are only a few of the various types of banks . In most countries, all banks are under the jurisdiction of the central bank of the government. In India, it is the Reserve Bank of India (RBI).

You must include reasoning for why you believe the banking industry is the best fit for you in your response to this question. Here, you may state that the banking industry is among the fastest-growing industries and has a significant impact on the lives of many people. Do not mention your desire for a secure career or any other private motivation.

A specific area of banking called "investment banking" looks after capital and financial asset portfolios for other companies, governments, and other organisations. In addition, it handles financial asset portfolios that include fixed income, corporate finance, commodities and currency writing, debt and equity writing, and corporate advisory services for mergers and acquisitions.

Banks charge their customers an APR, or annual percentage rate, for using their services, which include loans, credit cards, mortgage loans, etc. The cost of this service is decided once a year.

According to RBI standards, banks must adhere to the Know Your Customer (KYC) laws. As a result, the bank asks the account holder for some personal information. A few pictures, identification proof such as an Aadhar card or Pan card, and address proof for home verification are the three main types of documentation required to open a bank account.

Before opening a bank account, you should choose the type that you desire. Based on the requirements of their clients, banks today provide a number of bank account types. When opening a savings account, you should research the deposit interest rate and whether it will remain constant over time.

You should research the many debit card alternatives that banks provide when creating a new bank account. Before opening a checking account, inquire about the number of complimentary checks they provide. Typically, banks charge customers to order new chequebooks or use checks. You should research all of the banks' internet resources before opening a bank account and keep them in mind.

The following options are provided by a bank for managing your specific bank account:

• Service at a branch or the counter
• Banking through phone or mobile
• Web-based banking
• ATM (Automated Teller Machine)