gdpi packet - 2018 packet_15411… · 8/19/2019 · gdpi (phase iii) 50 25 total (overall) 300 100...

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GDPI PACKET - 2018

Table of Contents About Group Discussion & Personal Interview ...................................................... 2

Marking Scheme & Selection Criteria for various Exams ................................................... 2

SBI PO ................................................................................................................................ 2 Group Discussion (GD) ............................................................................................. 8

What is a Group Discussion? .............................................................................................. 8

Format of a GD ................................................................................................................... 8

The Group Discussion Environment ................................................................................. 10

Be Mentally Prepared for the Group Discussion .............................................................. 10

Self-Image & Mannerisms ................................................................................................ 10

Planning & Time Management ........................................................................................ 11

Basic Etiquettes (Dos & ‘Don’ts) for GD ........................................................................... 13 Personal Interview (PI) ............................................................................................ 14

What is PI? ....................................................................................................................... 14

Basic Etiquettes (Dos & ‘Don’ts) for PI ............................................................................. 14 Common Questions Asked in the Interview ......................................................... 16

Personal & Personality Based Questions ......................................................................... 16

Finance & Economics Important Terms* ......................................................................... 20 HOMEWORK ............................................................................................................ 32

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About Group Discussion & Personal Interview

The Group Discussion and Personal Interview, or sometimes only the Personal

Interview Session is conducted as the final stage of recruitment for several exams

like SBI PO, IBPS PO, IBPS RRB Officer Scales I, II, III, LIC HFL, Indian Bank PO,

Syndicate Bank PO, South Indian Bank PO, Canara Bank PO, Federal Bank PO,

Bank of Baroda PO etc.

Usually, the Group Discussion (abbreviated as GD), and Personal Interview

(abbreviated as PI) are conducted at the same center one after the other. The order

in which these exercises are conducted will depend from center to center or panel to

panel. And most often, the Group Discussion is not meant to be an eliminator to get

into the PI. Marks are allotted for both.

You will need to carry your latest call letter for the same.

Marking Scheme & Selection Criteria for various Exams SBI PO

Test Max. Marks

Group Discussion 20

Personal Interview 30

TOTAL – Phase III 50

A category-wise merit list is drawn on the basis of the aggregate marks scored in the

Main Examination. Candidates numbering up to 3 times (approximately) of the

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category wise vacancies are shortlisted for the Group Discussion & Interview from the

top of the merit list subject to a candidate scoring minimum qualifying score in

aggregate.

Note, that not everyone clearing the Mains Cut Off is necessarily eligible. Aggregate

marks of candidates qualifying in both Objective and Descriptive Tests will be arranged

in descending order in each category. The selected candidates will be called for the

Group Discussion and Interview.

The final selection procedure will be based on the marks of the 2 papers in Phase II

and the 2 exercises GD& PI in Phase III. The Preliminary examination is only qualifying

in nature and will not be counted towards the final total. The scores of the two phases

will be scaled suitably so that marks will be normalized in a way that students need to

get a good score in each phase. The total marks will be normalized to 100 as follows:

Phase/Test Max. Marks

Normalized to

Main Examination (Phase II) 250 75

GDPI (Phase III) 50 25

TOTAL (Overall) 300 100

The final selection will be made from the top merit ranked candidates in each

category based on the total number of available vacancies in each category. There

will be statewise selections as vacancies have been declared nationwide.

IBPS PO

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Minimum Qualifying Marks

Personal Interview (Phase III)

100 40% (for GEN) 35% (for rest)

Prior to the completion of the interview process, scores obtained in the online main

examination will not be shared with the candidates shortlisted for interview.

Candidates who have been shortlisted in the Online Main examination will

subsequently be called for an Interview to be conducted by the Participating

Organisations and coordinated by the Nodal Bank in each State/ UT with the help of

IBPS.

Final Selection will be on the basis of Marks of both Main Examination and Personal

Interview.


Normalized to




IBPS RRB Officer Scale I





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Prior to the completion of the interview process, scores obtained in the online main

examination will not be shared with the candidates shortlisted for interview.

Candidates who have been shortlisted in the main examination for the post of

Officers Scale I will subsequently be called for an Interview to be co-ordinated by the

Nodal Regional Rural Bank with the help of NABARD and IBPS in consultation with

the appropriate authority.


Interview.


Normalized to




LIC HFL Assistant / Associate / Assistant Manager

LIC HFL exam takes place in two stages – an Online exam and a Personal Interview.

Final Selection will be on the basis of marks of both Online Examination and

Personal Interview. The organization has not declared the minimum qualifying marks

for either stage, or the relative weightage for selection.

Indian Bank PO

The selection process aims at getting candidates who are likely to succeed at various

roles in the Bank. The endeavor is to select candidates who are bright, have good

communication skills (both oral and written), are dedicated, can work effectively in

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teams, are passionate about their career goals and who display integrity and a

positive attitude

Candidates who have been shortlisted in the Main examination may subsequently be

called for an Interview to be conducted by the Bank






Interview.


Normalized to




Canara Bank PO



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Group Discussion (Phrase III)

50

40% (for GEN) 35% (for rest)


50

Candidates who have been shortlisted in the online examination would subsequently

be called for an Interview to be conducted by the Bank.

Final Selection into the PGDBF course will be on the basis of Marks of three stages -

Online Examination, Group Discussion and Personal Interview.


Normalized to

Online Test (Phase I) 200 50

Group Discussion (Phase II) 50 20

Personal Interview (Phase II) 50 30


On successful completion of PGDBF course, candidates joining the Bank as

Probationary Officer in JMGS-I will be on probation for a period of one year from the

date of joining the Bank.

GENERAL NOTE:

Please carry all documentation and complete all procedures mentioned in the recruitment notifications/further communications of your respective exams.

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Group Discussion (GD)

What is a Group Discussion? The Group Discussion is a discussion on a topic among 6-15 candidates. Unlike a

debate, it is more informal, but it is more formal than a regular discussion. A panel of

3-5 people judge you on the basis of several points. These points include –

x How you understand & analyze the topic

x What you know about the topic (your knowledge of a topic)

x The strength of your arguments (how well you build arguments and

counterarguments)

x The way you present your arguments (the coherence and logical flow in your

arguments)

x Your language proficiency (how well you present & elaborate your points)

x Your communication skills (verbal + body language)

x Your interpersonal skills (how you deal with others especially in pressure or

heated situations + how well you listen and respond to others)

x Your negotiation skills (how you convince others, including your ability to turn

someone else’s argument in your favour)

x Your level of initiative (how quickly you present your arguments and if you take

the lead in the discussion)

Format of a GD x Remember that the Panel doesn’t interfere – except to start and stop the GD.

x A topic is presented with two or more possible sides or they present a topic

where you are required to agree or disagree.

o E.g. 1: Has it become acceptable to be a divorcee in India?

o E.g. 2: In modern times, there is no longer any stigma attached to

divorce. Agree or Disagree?

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x A set amount of time is given after the topic is presented for everyone to

prepare their arguments. This is the only time you are given to jot down your

thoughts before the GD begins. Note that it is unlikely you will get any spare

time in between the discussion as you are required to pay attention to the

discussion proceedings.

x You will not be told which side of the argument to take. That is your call to

make. But make sure you take a line and stick to it, right from the time of

jotting points. You should only put down counter-points for counter-arguments,

if time permits.

x You must present your arguments from one side only. When listening to others

or speaking yourself, you may accept the validity of good points from other

candidates but you must present additional points or counterpoints to further

your own argument.

o E.g. Candidate 3: “There are many men who take advantage of the

fact that society frowns down upon divorced women more than divorced

men.” You: Agreed, but note that divorce is a legal procedure and cannot

remedy societal issues. The fact that a marriage needs legal dissolution

means it is dire enough that the parties are aware of the societal

implications.

x You may be given 2-3 mins to speak solo and then a minute to sum up your

arguments at the end after everyone speaks OR everyone may get to speak

without allotted timing.

x Ideally, one person speaks at a time but you can, without being rude or loud,

take charge and get a word in by calling attention to a point the speaker is

making IF the panel doesn’t forbid such a thing explicitly. The goal is to have a

healthy discussion to arrive at a possible solution.

x Remember that you have a limited amount of time within a GD.

x Also remember that this is not a speech or elocution competition where you

will be permitted to speak at length. You need to present your arguments

concisely and without taking up too much time.

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x You also need to make sure that you are speaking in line with the discussion

at large. You cannot talk about X when the line that the discussion has taken

is talking about Y. You can, however, find a way to give your arguments about

Y and subtly shift the topic to X.

The Group Discussion Environment x Usually, a GD is arranged in a closed circle or semicircle with

people/candidates seated close to each other. The Panel sits far away as

observers – not participating.

x You may be given a paper & pen to jot down important points but you should

bring your own just in case, with the understanding that they may be

confiscated at the exam center before entering.

x There is usually uncertainty about who will begin. If you are familiar with the

subject, don’t hesitate to start.

x It can get loud and heated so do not lose your cool. At no point should you get

personal or critical about someone.

Be Mentally Prepared for the Group Discussion You may get a topic you are not familiar with or you may be in the company of more

expert debaters. It is possible that you may be too nervous & fumble while you speak.

It is important that you remember to remain confident. Trust what you know and try

to spin arguments in your favour.

Even if you don’t know anything, use and refute others’ points. Everyone is in the

same boat – do not be intimidated by anyone. Try to make valid points but avoid

making unnecessary & redundant statements.

Self-Image & Mannerisms Remember that other candidates are not your enemies! This is a discussion – not a

fight. Be patient and calm. Be aware of what you say. Don’t pause or say “umm..” too

much – your time is limited. Keep your pace constant – not too fast or slow. Humour

is an important element – but do it right. Keep it subtle, don’t poke fun at anyone,

don’t make jokes. End each argument with an open-ended question.

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Body language is important. Look confident – be confident. Sit straight & do not

hunch, slouch or puff out chest. Rest your arms on the desk when not using them.

Keep your hands busy with either writing or gestures. Keep moving your head to

follow the discussion. Don’t look nervous or scared!

Planning & Time Management x The whole GD may last anywhere between 10-30 minutes.

x You will be given 2-3 mins after the topic is presented to collect your

thoughts. Use this time to jot down points in a logical manner. You may use

one of the following techniques based on the topic and your familiarity with

it:

o SWOT (strengths-weakness-opportunity-threat): The easiest technique.

Jot down every strength and corresponding weakness for every

stakeholder in the topic, along with the opportunities and threats

surrounding the context.

E.g. SWOT Analysis for the Divorce topic would be something along the

lines of: Divorced Women S: Emancipation, Escape from Domestic Abuse, Push for

independence, Safe Environment for Kids, Inspiration for other women

to break free from domestic hostility, Support from family

W: Society looks down, family pressure, (Pressure to) Remarry, Single

Motherhood, Tag of “Loose” or “Immoral” woman, Lack of support from

family & in-laws

O: (Opportunity to) Remarry, Be Independent, Be Child-free

T: Living alone, repercussions from in-laws, lengthy legal proceedings

Similarly, divorced men will have their own SWOT.

o PESTLE (political-economic-social-technological-legal- environmental).

Jot down the impact (pros + cons) of the given topic from each of the

above given angles. Try to frame the thoughts as given below but only

jot down keywords as highlighted.

E.g. While we are still on the Divorce topic. Here is a PESTLE Analysis

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from the CON (against) side of the argument.

P: Politics and policies often penalize and even attack divorced

women. For example, it is necessary for women to change their name legally on all documents if they want to revert back to their maiden

names. Or they need to produce an affidavit of name change stating the

reason for change as divorce. Similarly, divorced men do not receive

alimony from their ex-wives, even if the woman earned more than the

man.

E: Going from being a multi-income family to a single-income individual

can be tough. Taxation norms also change for families vs. individuals.

The sudden fall in income can lead to a change in social status.

S: Society still frowns upon divorcees which is evident from the fact that

parents will still think twice before considering a divorcee for a

son/daughter-in-law, if at all they consider. The inherent idea being if

someone got divorced, there must be something wrong with them.

T: Online matrimonial and dating sites still require you to disclose your

marital status as divorced.

L: Legal proceedings for divorce still includes mandated counselling

sessions even if the decision to file is mutual, as if the courts think that

people who file for divorce cannot do so with sound mind and amicably,

so courts treat them as children.

E: --NA--

o Word Cloud/ Word Salad: Note down every point you can think of that

is related to the given topic. Usually this will take the form of a word

cloud. Draw lines to keep track of links. This technique is not

recommended, but may be used if you are given very little time to

prepare your arguments.

x Remember that you need to get in only 2-3 good arguments. But to get to

those good arguments, you have to produce at least 10-15, because other

candidates would also definitely have anticipated those arguments and

added them to their list. So try to have at least one or two unique arguments

that come from a personal experience or unique knowledge.

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x Once the debate starts, it is up to you to get your voice heard. Those who

miss their chance to speak by not taking initiative or not being able to get a

word in will have lost their chance and their marks.

x Keep each point brief and don’t get too wordy or add too many unnecessary

pleasantries. Don’t make redundant statements.

x Before you speak, make sure you have your points in your head. Take 10

seconds to ensure that while another candidate is discussing their points.

Being blank, confused or not having a strong enough or long enough point

to make hurts more.

x Try to keep the points relevant to the on-going discussion and lead it gently

to where you want to take it.

x When wrapping up, keep the time limit in mind and use an open-ended

question.

Basic Etiquettes (Dos & ‘Don’ts) for GD x No need to start the debate with your name or “Hello”

x Respect the other candidates and the panel.

x Address the other candidates, not the panel.

x Listen to what others have to say – don’t unnecessarily cut them off.

x Interrupt gently when you have something constructive to add.

x Don’t focus on any one candidate and their points alone.

x Even if you are leading the discussion, do it subtly.

x Don’t stay stuff like “You are getting repetitive”, “Let someone else speak” or

“Let’s wrap up”, “Can you stop shouting?”.

x Instead try “Yes, I heard and acknowledged your point but…”, “This is like

what she was saying…”, “Let me summarize my conclusions…”, “I hear you,

but please let me add…”

x Do not use foul language, or get heated up even if someone else is not

following basic etiquette.

x Do not make the discussion about yourself, your personal experiences or a

show of your ego or supremacy.

x Do not make any unnecessary physical movements or gestures to distract

the panel or other candidates.

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x Keep the discussion in English and avoid Hindi, Hinglish or regional

languages.

x Dress formally while avoiding bold colours. Shirts and trousers for men and

women. Else, women may dress in a suitable garment like a salwar suit.

GROUP EXERCISE:

Note that in many cases, the terms “Group Discussion” and “Group Exercise” are used interchangeably and is conducted in the format described above. However, at certain centers during the SBI PO GDPI process, there was an additional Group Exercise session in addition to the Group Discussion. The format of the Group Exercise was also one of a discussion on a particular topic among multiple candidates. However, unlike a GD where the conductor doesn’t participate and remains a spectator, in the GE round, the conductor actively guided the discussion. Overall, if a candidate is prepared for a GD, they will be able to easily handle a Group Exercise of this nature.

Personal Interview (PI) What is PI? The interview round is generally 15-20 minutes long, where a panel of bank officials

ask questions to the candidates about themselves, the banking sector, current affairs,

general awareness, etc. It is an exercise to understand you, your personality, your

knowledge and occasionally your analytical skills.

Basic Etiquettes (Dos & ‘Don’ts) for PI x Always enter the room with a good smile on your face. Be warm and great the

interviewers with a ‘Good Morning’, ‘Hello’, ‘Namaste’ or anything that you

think is more appropriate. Please look at everyone’s face when you enter and

greet.

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x Do not reach out for a handshake unless you are offered one, which is

unlikely.

x Keep yourself cool and composed. Make sure you carry a handkerchief if you

tend to sweat a lot.

x Always be very honest and realistic. Do not brag or tell tall tales. As you are

handling huge bank transactions, your honesty and integrity should not be in

question. Thumb rule is Never Lie! Even if you lie (though not recommended),

you should sound genuine.

x Even if the interviewer asks you personal questions and tries to probe too

deep, be genuine with your answers. If they ask questions that make you

uncomfortable, do not get angry. Be prepared to meet them and answer them

with a smile.

x Do not initiate chit chat. Do not ask them questions back.

x If you don’t receive the next question after completing your answer, think to

see if you have anything of value to add. In case you do, you can add that.

You can also try to gently and subtly lead them from there to a a topic you are

comfortable with.

x Be confident at all times. And maintain eye contact with everyone in the panel

throughout the interview while answering. While being asked a question, look

at the person asking you the question and nod gently.

x You must be formally dressed. Avoid wearing stuffy clothes that will make you

sweat. Also avoid clothes wear sweat stains will show.

x Make sure to carry all your required documents to the interview and some of

your relevant personal certificates that reveal your character or personality.

You might be required to show them during the PI. You may even be quizzed

on them, so only carry those documents that need

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Common Questions Asked in the Interview Personal & Personality Based Questions (1) Introduce / Describe Yourself If the interviewer has already addressed you by your name before they start the

interview, you don’t have to start by answering ‘my name is so and so’. In case they

haven’t addressed you by name, you may tell them yours. They may also start by asking ‘Tell us something about your education’, ‘Tell me

something about your family’, ‘Have you appeared for any banking interview before’.

Be prepared to answer any question that they may begin with these and also

questions that arise from your answers.

For instance, if you say that you have appeared banking interview before, they would

ask ‘What was the result’, ‘Why do you think you have not cleared’. ‘What did you do

to improve yourself this time’.

If you have any prior job experience, be ready to answer questions related to your

job’. A typical answer is given a below; you’ll have to change your answer as

appropriate.

Here is a typical answer:

‘My Name is <abc>. I’m graduate/post graduate in <computer engg>. I have

completed my graduation from <abc college, Cochin>. My schooling was from <abc

school, Trivandrum>. I’m working as a <software engineer> in <abc company> for

the last <2 years>. To speak about my family, my husband is working with <abc

company> as <abc executive>. My father is a <abc manager> and mother is a <def

manager/homemaker>. I have one brother; he’s doing his <graduation in engg>. My

hobbies are <watching Game of Thrones and reading newspaper columns on

defense technology>.

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When you talk about your hobbies, make sure you have fair knowledge about the

area. If you say ‘reading books’, they might ask you about the last book that you have

read. If you say ‘travelling’, they might ask you about the place you have travelled

and significance/ historical questions related to the place. If you say ‘browsing’,

‘watching TV’ etc., it might reflect poorly. Instead you can talk about your passion for

a particular TV Show or a particular website. You can also talk about news channels

and learning oriented activities.

Suggested Channels: Hindustan Times, Times Now, CNN IBN, CNN, BBC, Al

Jazeera, NDTV Profit, Bloomberg, CNBC etc.

Suggested Internet Sources: Google to search for documents and learning

materials. Go through some financial websites on internet. If you are into share

trading, you may mention that as well. But you should have knowledge about stocks,

NIFTY, Sensex, etc. A good source for these are The Economic Times & Mint.

But remember when you talk about this, you should have good understanding about

the content. Else, you will end up looking like you are dishonest and trying too hard.

The goal of an interview is to determine whether the candidate will be outstanding in the job, and that means evaluating the skills and attitude required for that job. When you answer these questions, connect the dots on your resume so the interviewer understands not just what you've done, but also why.

(2) What attracts you to a career in Public Sector banking? or, Why you want to enter in Public Banking industry? Because of three things:

(a) A job in a public sector bank is considered a job for life. With opportunities to

advance at work and not worry about being fired because of downsizing or a bad

economy. This also gives me the advantage of working on personal projects.

(b) Good and rational promotion policy. You will get promotion, as per your work

performance and capabilities. (Here you can give some personal anecdote of how

someone close to you had a bad trajectory at work because there was a personal

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grudge.

(c) Good Salary and benefits.

(3) Why are you not working anywhere from past 6 months?

As competition in banking exams is very challenging, I wanted to give myself the best

chance to clear the SBI PO exam, this very year. A job could distract me from my end

goal. That's why I made a conscious decision to concentrate on exam preparations

only.

(4) Are you willing to relocate? Yes. I always like to visit new places, meet new people. Working in a new

environment allows us to learn more and in a better way. Also, as one of my reasons

to join banking industry is its rational promotion policy, I can't expect all of my future

promotions in the same city, it’s not possible.

(5) Why did you leave your last job? Don’t go into detail about your terrible boss, or the horrible work conditions. You

should answer the question honestly, emphasizing what you did like about working

there, while explaining the unavoidable circumstances that led to your departure.

You can answer this question in the following ways:

(a) I learned a tremendous amount at that job but there was no additional learning for

me to get there. I was interested in pursuing my love of <whatever you're looking to

do in Bank job>.

Or

(b) I left for an opportunity to advance my career in the Banking Industry.

(6) Why don't you join your father's business? I can join my family business any time and my father will be more than happy if I do

so. However, I want to use the skills and knowledge that I have acquired over my

lifetime. Moreover, I want to do something on my own and prove my worth to myself.

That's why I don't want to join my family business now.

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(7) You want to join Banking Industry, then why have you done engineering? This is the most asked question in interviews for banking jobs for engineering

graduates.

<smiling> I was expecting this question. Everyone thinks, bank jobs are meant to be

taken up either by commerce graduates or MBA degree holders. However, with the

sheer amount of engineers that India is producing year after year, that picture has

changed quite a lot in the last decade. More and more engineers readily choose

banking jobs straight out of their engineering college. And they are trained in college

to be problem solvers. There is no shame in getting a degree that opens almost

every door in the country. If I had got a B.Com. instead and decided that what I

wanted to do in life was engineering, I would have been at a loss to change streams.

After all, when I was in college, I was still clueless. I chose my career when I chose

banking.

(8) Who is your ideal or a person who inspired you the most (and why)? It is up to you. He/She can be any great personality, your mother/father, etc. If it is a

teacher or a banker/businessperson, even better.

(9) What are the strong and weak points of your personality? It is up to you. Think about it. Prepare a good answer for it yourself

Weakness: While telling your weak points, interviewer can also ask 'Can you improve your weak

points (and how)?'

Strengths: Usually, every candidate knows how to answer this question: Just pick a theoretical

weakness and magically transform that flaw into a strength in disguise! Let us take a

look at an example of this magical transformation -

My biggest weakness is getting so absorbed in my work that I lose all track of time.

Every day I look up and realize everyone has gone home! I know I should be more

aware of the clock, but when I love what I'm doing I just can't think of anything else."

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So your "biggest weakness" is that you'll put in more hours than everyone else?

Great...

A better approach is to choose an actual weakness, but one you're working to

improve. Share what you're doing to overcome that weakness. No one is perfect, but

showing you're willing to honestly self-assess and then seek ways to improve is

pretty impressive.

Be clear and precise. If you're a great problem solver, don't just say that: Provide a

few examples, pertinent to the opening, that prove you're a great problem solver. If

you're an emotionally intelligent leader, don't just say that: Provide a few examples

that prove you know how to answer the unasked question. In short, don't just claim to

have certain attributes -- prove you have those attributes.

(10) If you don’t get final selection in this examination, what would you do? I will try again, with more passion and hard work. I have no doubt about that. (Say it

with a confident smile).

(11) What is your Leadership Style? This is a tough question to answer without dipping into platitudes. Try sharing

leadership examples instead. Try something like this –

The best way for me to answer that is to give you a few examples of leadership

challenges I've faced," and then share situations where you dealt with a problem,

motivated a team, worked through a crisis. Explain what you did and that will give the

interviewer a great sense of how you lead.

Finance & Economics Important Terms* *Note that these answers may be out of date. Please use these as only as indicative

answers and indicative questions.

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(1) Nationalization of Commercial Banks in India The Government of India issued an ordinance ('Banking Companies (Acquisition and

Transfer of Undertakings) Ordinance, 1969') and nationalised the 14 largest

commercial banks with effect from the midnight of 19 July 1969.

(2) What is Cash Reserve Ratio (CRR)?

In India, banks are required to retain a certain percentage of their deposits as liquid

cash. However, banks prefer to deposit this liquid cash with The Reserve Bank of

India, which is equivalent to having cash in hand. The percentage of the deposits that

should be kept aside by banks is called Cash Reserve Ratio. CRR is fixed by The

Reserve Bank of India. For example: If the bank deposit amount is Rs.100 and the

CRR is 10% per annum, the liquid cash that the bank should have at all times is

Rs.10. The remaining funds, which is Rs.90 in this case can be used for lending and

investment purposes. RBI has the power to determine the lending capacity of the

banks in India through CRR. They will increase CRR if they want to reduce the

amount that the banks can lend and vice versa. The current CRR is 4% p.a.

(3) What is Statutory Liquidity Ratio (SLR)? At the end of every business day, banks are required to maintain a minimum ratio of

their Time liabilities (when the bank has to wait to redeem their liabilities) and Net

Demand (when bank can withdraw money from these accounts immediately) in the

form of liquid assets like gold, cash and government securities. The ratio of time

liabilities and liquid assets in demand is called Statutory Liquidity Ratio or SLR. The

maximum SLR that The Reserve Bank of India can set is 40% p.a.

(4) What is Bank Rate? Bank Rate is the rate of interest charged by The Central Bank of India against loans

offered to commercial banks. Bank rate is usually higher than repo rate. Unlike repo

rate, bank rate directly affects the end user, in this case the customer, as high bank

rates mean high lending rates. When bank pay high interest rate to obtain loan from

RBI, they in return charge the customer high interest rate to break even. Also known

as “Discount Rate”, bank rate is a powerful tool used by the RBI to control liquidity

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and money supply in the market. The current Bank Rate is the same as MSF rate.

(5) What is Liquidity adjustment facility (LAF)? Liquidity adjustment facility (LAF) is a monetary policy to which allows banks borrow

money through repurchase agreements. LAF is used to aid banks in adjusting the

day to day mismatches in liquidity. LAF helps banks to quickly borrow money in case

of any emergency or for adjusting in their SLR/CRR requirements.

(6) What is Repo Rate? The discount rate at which a central bank repurchases government securities from

the commercial banks, depending on the level of money supply it decides to maintain

in the country's monetary system.

(7) What is Reverse Repo Rate? Reverse repo rate is the rate at which the central bank of a country (Reserve Bank of

India in case of India) borrows money from commercial banks within the country. It is

a monetary policy instrument which can be used to control the money supply in the

country.

(8) What are Open Market Operations? Open Market Operations refer to the purchase and sale of the Government securities

(G-Secs) by RBI from / to market. The objective of Open Market Operations is to

adjust the rupee liquidity conditions in the economy on a durable basis. When RBI

sells government security in the markets, the banks purchase them.

(9) What is a Commercial paper? A commercial paper in India is the monetary instrument issued in the form of

promissory note. It acts as the debt instrument to be used by large corporate

companies for borrowing short-term monetary funds in the money market. An

introduction of Commercial Paper in Indian money market is an innovation in the

Financial system of India.

(10) What are the different services provided by commercial banks?

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(a) Accepting Deposit

(b) Advancing Of Loans

(c) Discounting Of Bill Of Exchange

(d) Cheque Payment

(e) Remittance

(f) Collection And Payment Of Credit Instruments

(g) Foreign Currency Exchange

(h) Consultancy

(i) Bank Guarantee

(11) What are Financial markets? A financial market is a market in which people trade financial securities, commodities,

and other fungible items of value at low transaction costs and at prices that reflect

supply and demand. Securities include stocks and bonds, and commodities include

precious metals or agricultural products.

(12) What is Inflation? In economics, inflation is a sustained increase in the general price level of goods and

services in an economy over a period of time.[1] When the price level rises, each unit

of currency buys fewer goods and services; consequently, inflation reflects a

reduction in the purchasing power per unit of money – a loss of real value in the

medium of exchange and unit of account within the economy.

(13) What is Deflation? In economics, deflation is a decrease in the general price level of goods and

services. Deflation occurs when the inflation rate falls below 0% (a negative inflation

rate). Inflation reduces the real value of money over time; conversely, deflation

increases the real value of money – the currency of a national or regional economy.

This allows one to buy more goods and services than before with the same amount

of money.

(14) What is a Saving Account?

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A savings account is one of the simplest type of bank accounts. It allows you to store

cash securely and earn interest on your money.

(15) What is a Current Account? A current account is a type of deposit account that caters to professionals and

businessmen alike. Dealing largely with liquid deposits, this product allows for

withdrawal of funds and checks being written against the balance and does not limit

the number of transactions in a day.

(16) What is Corporate Banking? Corporate banking is defined as custom-tailored financing and banking services for

corporations. Corporate banking is typically offered by commercial banks, and entails

all the services that can be extended on a financial level to corporate entities to ease

day-to-day operations.

(17) What is Public Provident Fund (PPF)? Public Provident Fund (PPF) scheme is a popular long term investment option

backed by Government of India which offers safety with attractive interest rate and

returns that are fully exempted from Tax .Investors can invest minimum Rs. 500 to

maximum Rs. 1,50,000 in one financial year and can get the facilities such as loan,

withdrawal and extension of account.

(18) What are the different Investments under 80(C)? 1. Fixed deposit (5 years)

2. PPF

3. Equity mutual funds

4. ELSS

5. EPF and VPF

6. NSCs (National Saving Certificate)

7. ULIPs

8. NPS (Pension plans)

9. Life insurance

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(19) What are the different functions of NABARD (National Bank of Agriculture and Rural Developments)? NABARD is a Development Bank with a mandate for providing and regulating credit

and other facilities for the promotion and development of agriculture, small-scale

industries, cottage and village industries, handicrafts and other rural crafts and other

allied economic activities in rural areas with a view to promoting integrated rural

development and securing prosperity of rural areas.

(20) What are the different functions of SEBI (Securities & Exchange Board of India)?

SEBI or the Securities and Exchange Board of India is a designated body which

regulates the markets of India when it comes to investment and finance. The main

functions of SEBI include the designing and meting out certain rules and regulations,

which in turn will make the market a safe place for investment.

It basically prohibits: 1. Price Rigging (people manipulate the prices of securities for inflation or depressing

the market price of securities).

2. Insider Trading.

3. Fraudulent and unfair trade practices.

Also, SEBI promotes:

(i) Training of intermediaries of the securities market.

(ii) Activities of stock exchange by adopting a flexible and adaptable approach in

following way:

(a) SEBI has permitted internet trading through registered stock brokers.

(b) SEBI has made underwriting optional to reduce the cost of issue.

(c) An Even initial public offer of primary market is permitted through the stock

exchange.

(21) Role of RBI (Reserve Bank of India) 1. Government’s banker and performs banking functions for the central

and the state governments.

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2. Bankers of banks

3. Maintain liquidity in the economy

4. Regulator of country's financial system

5. Regulates and facilitates foreign trade advisor to the Government of India.

6. Issues currency notes

(22) Role of IRDA The Insurance Regulatory and Development Authority of India (IRDAI) is an

independent, statutory body tasked with regulating and promoting the insurance and

re-insurance industries in India. It is the apex body overseeing the insurance

business in India. It protects the interests of the policyholders, regulates, promotes

and ensures orderly growth of the insurance in India.

(23) What are Derivatives? A derivative is a contract between two parties which derives its value/price from an

underlying asset. The most common types of derivatives are futures, options,

forwards and swaps. Description: It is a financial instrument which derives its

value/price from the underlying assets.

(24) Monetary policy Monetary policy is basically managed by the Central bank of the Country i.e Reserve

Bank of India. It is also known as the ‘credit policy‘.

It controls the money supply & amount of credit in the economy. Through credit policy

RBI controls these rates like Bank Rates, MSF, Repo Rate, Reverse Repo rate &

Statutory Liquidity Ratio in order to manage price stability in the economy. The latest

values are as follow:

Repo Rate – 6.50%

Reverse Repo Rate – 6.25%

Marginal Standing Facility – 6.75%

Main Objectives of RBI Monetary Policy

The Main objectives of monetary policy are:

o Price stability

o Exchange Rate Stability

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o Inflation targeting

o Economic Growth

(25) Fiscal policy It changes every year and focuses on growth of economy. Fiscal policy is the means

by which a government adjusts its spending levels and tax rates to monitor and

influence a nation's economy. It changes every year and focuses on growth of

economy.

(26) GST and its Impact Goods and Services Tax (GST) is a system of taxation in India which merges many

individually applied taxes into a single tax. GST plays an important role in the growth

of Indian Economy. It directly impacts the lives of all the people; be it merchants,

workers or salaried employees.

(27) What is Priority Sector Lending? Priority Sector refers to those sectors of the economy which may not get timely and

adequate credit in the absence of this special dispensation. Priority Sector Lending is

an important role given by the Reserve Bank of India (RBI) to the banks for providing

a specified portion of the bank lending to few specific sectors like agriculture and

allied activities, micro and small enterprises, poor people for housing, students for

education and other low income groups and weaker sections.. This is essentially

meant for an all round development of the economy as opposed to focusing only on

the financial sector.

(28) Non Performing Assets (NPAs) and SARFAESI Act NPA stands for Non-Performing Assets of the banks. It simply means:

o Bank gives a loan to a person.

o Person fails to pay loan installment for 3 months. (Even after repeated notices

from the bank).

o Banks declare such loans as ‘bad loans’ or NPA.

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o The combined NPAs of all 24 PSBs and the State Bank of India (SBI) group

was around 4 lakh crore by the end of December, 2015.

SARFAESI ACT 2002 (1) The Securitisation and Reconstruction of Financial Assets

and Enforcement of Securities Interest Act, 2002 (also known as the SARFAESI Act)

is an Indian law. It allows banks and other financial institution to auction residential or

commercial properties to recover loans. (2) It is used to expedite recovery of loans

and bring down the non performing asset level of the Indian banking and financial

sector. (3) It will thus become easier to recover bad loans from wilful defaulters.

(29) Know Your Customers (KYC) In the light of the digital banking revolution, you will find that some important banking

processes have taken the online route. One of the best examples is the KYC or Know

Your Customer application filling and submission, which is mandatory for opening a

bank account these days. Before the digital banking, a new customer had to go

personally to a bank and submit the KYC documents. Today, you need to simply fill

up an online application and submit online. That’s it!

Seeing this digital revolution, many non-customers of banking have also become

customers and are doing their transactions in the comfort of their desired locations.

These days, you will also find the Indian government promoting the use of online or

digital banking. There are several steps taken by the government for financial

inclusion.

(30) Bitcoin A virtual currency, to be precise Bitcoin is a cryptocurrency and a payment system. It

can be defined as “decentralized means of tracking and assigning wealth or

economy, it is a software protocol. It was invented by an unidentified programmer (or

group of programmers) under the name of Satoshi Nakamoto and was introduced

on 31st October 2008 to a cryptography mailing list and released as open-source

software in 2009.

(31) What do you mean by Money Laundering?

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Money laundering is the process of transforming the profits of crime and corruption

into ostensibly ‘legitimate' assets. In a number of legal and regulatory systems,

however, the term money laundering has become conflated with other forms of

financial and business crime, and is sometimes used more generally to include

misuse of the financial system (involving things such as securities, digital currencies,

credit cards, and traditional currency), including terrorism financing and evasion of

international sanctions.

(32) What is NEFT & RTGS ? NEFT stands for National Electronic Fund Transfer. Its main purpose is to enable

electronic cash transfer within bank accounts. It was launched in November 2005.

There is no minimum and maximum limit for cash remittance with NEFT.

RTGS stands for Real Time Gross Settlement. It is a fund transfer system in which

funds are moved from one bank to another in real time and on the gross basis. It

means that the payment transaction isn’t subject to any waiting period.

The transaction will be completed as soon as the processing is done, and gross

settlement means that the money transfer is completed on a one to one basis without

clustering with another transaction.

The transaction once done is treated as final and irrevocable as the money transfer

occurs in the books of the RBI. This system is maintained by the RBI, and it is

available only during working days for a given number of hours. The minimum limit

for RTGS transaction is Rs. 2,00,000 and there is no maximum limit.

(33) What is NTDL? Net Demand and Time Liabilities or NDTL displays the difference between the

sum of demand and time liabilities (deposits) of a bank (with the public or the

other bank) and the deposits in the form of assets held by the other bank.

In other words, the net demand and time liabilities of a bank can be calculated by

using the following formula:

Bank’s NDTL = Demand and Time Liabilities (deposits) – Deposits with Other Banks

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Suppose a bank has deposited 5000 with the other bank and its total demand and

time liabilities (including the other bank deposit) is 10,000. Then the net demand

and time liabilities will be 5,000 (10,000-5,000).

(34) Types of Cheque A signed unconditional order addressing the bank to credit the amount to the

holder of instrument is called a Cheque. A widely used mode of payment,

cheques can be of different types depending on how the drawer has issued the

Cheque. Some of these types are mentioned below: o Open / Bearer Cheque

o Order Cheque

o Crossed Cheque

o Ante-dated Cheque

o Post-dated Cheque

o Stale Cheque

o Mutilated Cheque

(35) What is CTS? Cheque Truncation System (CTS) or Image-based Clearing System (ICS), in India, is

a project of the Reserve Bank of India (RBI), which commenced in 2010, for faster

clearing of cheques. CTS is based on a cheque truncation or online image-based

cheque clearing system where cheque images and magnetic ink character

recognition (MICR) data are captured at the collecting bank branch and transmitted

electronically.

Cheque truncation means stopping the flow of the physical cheques issued by a

drawer to the drawee branch. The physical instrument is truncated at some point en

route to the drawee branch and an electronic image of the cheque is sent to the

drawee branch along with the relevant information like the MICR fields, date of

presentation, presenting banks etc. This eliminates the need to move the physical

instruments across branches, except in exceptional circumstances, resulting in an

effective reduction in the time required for payment of cheques, the associated cost

of transit and delays in processing, etc., thus speeding up the process of collection or

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realization of cheques.

(36) What is Sensex and how it is calculated? Sensex is the index of top 30 stocks in Bombay Stock Exchange(BSE). Value of

Sensex is calculated using ‘Free Float Market Capitalization’ method. Free float ratio

is number of outstanding shares available for general public to trade.

(37) Minimum lock-in period for Tax Saving Fixed Deposit 5 Years

(38) What is Call option and Put option ? Call option - An option which gives right to the Option Holder to buy a certain stock at

specified time and specified date

Put option - An option which gives right to the Option Holder to sell a certain stock at

specified time and specified date

(39) What is GDP ? Gross Domestic Product is the sum of all the goods and services produced within

physical borders of a country in a specific period of time.

(40) What is GNP ? GNP = GDP + Income of residents overseas - Income of Foreigners within the

borders of domestic economy

(41) What is DeMat account? It is the process of converting the physical share certificates into equivalent number

of electronic holdings.

(42) What is RuPay Card? RuPay is India’s own card payment system launched by National Payments

Corporation of India (NPCI)

32

(41) Bull and Bear Market When investors expect prices to rise, it's known as Bull market.

When investors expect prices to fall, it's known as Bear market.

(42) What is SWIFT? Financial messaging network which exchanges messages between banks and

financial institutions

(43) What is Service Tax? A tax levied on service-providers in India on certain service transactions.

(45) What is Mutual Fund? What is the safest type of fund? Mutual Fund is a pool of fund where investors invests their money for a common

objective. Benefits of Mutual funds:

o Exempted under Section 80(C)

o Managed by experts

o Index funds are safest because money is invested in all index stocks. The rise

or fall of value is aligned with index.

HOMEWORK

Give answers to the following that will be useful for both GD & PI. These

include both financial and general awareness based questions.

(1) What is BHIM & UPI?

(2) What is USSD & AEPS? How is NPCI related to this?

(3) What is DBT?

(4) Tell me more about Pradhan Mantri Jan Dhan Yojana?

(5) What is the difference between Small Bank & Payment Bank?

(6) What is PCA?

33

(7) What is MCLR? What is Base Rate?

(8) What do you mean by cross-selling & para-banking?

(9) What is offshore banking? Name some other types of banking?

(10) What is the function of DICGC?

(11) What are the main differences between Teaser Loans,

Syndicate Loans and Bridge Loans?

(12) What is amortization?

(13) What is moratorium?

(14) What are some of the types of securities like mortgage?

(15) What is MSS?

(16) What are some recent acts and bills in the news? For e.g.

RERA Act, Fugitive Economic Offenders’ Bill 2018 etc.

(17) Tell us some of the most important points from this year’s

budget.

(18) What are some types of risks?

(19) What is the 3rd Bassel Norm about?

(20) What does the Bank Board Bureau do?

(21) What does the Indian Banking Association do?

(22) Where is the SBI headquartered?

(23) What is the vision and mission of SBI?

(24) How many ATMs does SBI have across the country?

(25) Who are the CEO & MD of SBI?

(26) Who is the current MD of RBI?

(27) What is the difference between FERA & FEMA?

(28) Who is a Banking Ombudsman?

(29) What is the meaning of Bancassurance?

(30) What is the difference between banks and NBFCs?

(31) What percentage of Indian population classifies as rural?

(32) What percentage of urban Indian population lives in slums?

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(33) What is the percentage of mobile penetration in India?

(34) What percentage of people in India have access to internet?

(35) What percentage of people in India rely on organized banking?

(36) What are the literacy rates of India?

(37) What is the prevalence of violence against women?

(38) What is India’s rank in the World Happiness Index?

(39) What is India’s rank in various Development Indexes?

(40) What is India’s GDP?

(41) What is Insurance?

(42) What are the different types of Insurance?

(43) How does someone benefit from Insurance?

(44) What are the different insurance schemes instituted by the

government?

(45) What is the average lifespan of a person in India across different

demographies?

(46) Who can buy insurance?

(47) What are the requirements to buy insurance?

(48) Give a brief history of insurance.

(49) Which are the biggest insurance providers in the country?

(50) Which are the government run insurance bodies in India?

gdpi packet - 2018 packet_15411… · 8/19/2019 · gdpi (phase iii) 50 25 total (overall) 300 100...

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