Hi friends, Here I am posting for you some important banking terminology that will helpful inyour bank interview

preparation. I hope it will clear all your doubts regarding different bank rates.

REPO RATE: - Under repo transaction the borrower places with the lender certain acceptable securities against funds
received and agree to reverse this transaction on a predetermined future date at agreed interest cost. Repo rate is also called (repurchase agreement or repurchase option).

REVERSE REPO RATE: - is the interest rate earned by the bank for lending money to the RBI in exchange of govt.
securities or "lender buys securities with agreement to sell them back at a predetermined rate".

CASH RESERVE RATIO: - specifies the percentage of their total deposits the commercial bank must keep with central
bank or RBI. Higher the CRR lower will be the capacity of bank to create credit.

SLR: - known as Statutorily Liquidity Ratio. Each bank is required statutorily maintain a prescribed minimum proportion of
its demand and time liabilities in the form of designated liquid asset. OR "Every bank has to maintain a percentage of its demand and time liabilities by way of cash, gold etc".

BANK RATE: - is the rate of interest which is charged by RBI on its advances tocommercial banks. When reserve bank
desires to restrict expansion of credit it raises the bank rate there by making the credit costlier to commercial bank.

OVERDRAFT:- It is the loan facility on customer current account at a bank permitting him to overdraw up to a certain
agreed limit for a agreed period ,interest is payable only on the amount of loan taken up.

PRIME LENDING RATE: It is the rate at which commercial banks give loan to its prime customers.

Bank Related Rates

Type Policy Rate Name Bank Rate Repo Rate Reverse Repo Rate Marginal Standing Facility Rate Reserve Ratios Lending Deposit Rates CRR SLR Base Rate Savings Bank Rate Deposit Rate Rate 6% 8.50% 7.50% 9.50% 6% 24% 9.50% 10.75% 4% 8.50% 9.50%

Explanation of Bank Related Rates

1) What is Bank Rate? Bank rate is the rate of interest which RBI charges on the loans and advances that it extends to banks and other financial intermediaries. Changes in the bank rate are often used by central banks to control the money supply. 2) What is Repo Rate? The rate at which the RBI lends money to commercial banks is called repo rate, a short term for

repurchase agreement. A reduction in the repo rate will help banks to get money at a cheaper rate. When the repo rate increases borrowing from RBI becomes more expensive. 3) What is Reverse Repo Rate? The rate at which banks park their money with Reserve Bank is called the reverse repo rate. 4) What is Marginal Standing Facility (MSF) Rate? The Marginal Standing Facility (MSF) Scheme is operational on the lines of the existing Liquidity Adjustment Facility Repo Scheme (LAF Repo) i.e. commercial banks can borrow money from RBI. The basic difference between Repo and MSF scheme is that in MSF banks can use the securities under SLR to get loans from RBI and hence MSF rate is 1% more than repo rate. Read more about MSF here 5) What is CRR? Cash reserve ratio is the cash parked by the banks in their specified current account maintained with RBI. 6) What is SLR? Statutory liquidity ratio is in the form of cash (book value), gold (current market value) and balances in unencumbered approved securitie

IBPS PO Interview Process There will be sometime Group Discussion round before the interview, so be prepared for that as well. Here are some expected GD Topics. Apart from this be aware about all Current events/topics happening around within the country. There will be some general questions from the subject or the studies which you took up and other formal questions which you covered in the test preparation. Here are some Sample Questions. Candidates successful in both CWE-PO II and Common interview will be listed in the order of merit. The successful candidates will be asked about the order of preference of banks in which they want to apply for through a registration process which will be available on the IBPS website. Depending on the vacancies in each bank of his/her preference, a successful candidate will receive through a computerized system an offer from ONE of the participating Public sector banks. Vacancies remaining unfilled on account of candidates declining offer, will be filled from among the remaining candidates through the same procedure as mentioned above.

List of GD Topics for IBPS 1) FDI in Retail in India 2) Growth Vs Inflation (RBI stand on the policy rates) 3) European Union Debt Crisis (PIGS Countries) 4) Rupee Depreciation (Impact on various industries) 5) Rising NPAs of the Indian Banks 6) Technology Creates Income Disparities 7) Skilled Manpower Shortage in India 8) Use of Force by Banks to Recover Loans 9) Should India break Diplomatic Ties with Pakistan? 10) Is Swadeshi Relevant for India Today? 11) Privatization will lead to Less Corruption 12) Advertising is a Waste of Resources 13) Stock Market Crash Sub Prime Crisis in US 14) Consumer is God in Todays Market

2) 15) India will be a Superpower in 21?st Century with 40 Crore Hungry People 16) Public Sector is more a Hindrance than Help to Promote Socialism 17) Should PSUs be divested through Strategic Sale or Public Offer?

3) NASA spacecraft discovers ice on Mercury: A NASA spacecraft has confirmed the presence of abundant icy water along with other frozen volatile materials within burning hot Mercurys permanently shadowed polar craters. NASAs Mercury Surface, Space Environment, Geochemistry, and Ranging (MESSENGER) spacecraft has been studying Mercury, the nearest planet to the Sun, in unprecedented detail since its historic arrival there in March 2011. Given its proximity to the Sun, Mercury would seem to be an unlikely place to find ice. However, the tilt of Mercurys rotational axis is less than 1 degree, and as a result, there are pockets at the planets poles that never see sunlight. 4) Lok Sabha Passed the banking bill Clearing way for New Corporate Licenses: The Lok Sabha on passed the Banking (Amendment) Bill, which majorily focuses on attracting more foreign investment into the banking industry and cleared a major obstacle and paved the way for the Reserve Bank of India to issue new bank licenses. 5) Chinas Ministry of Commerce had named Infosys in its list of the 100 key liaison service outsourcing companies. Infosys became the only company headquartered in India that has received this recognition. It was included in the list due to strong growth in China. 6) US President Barack Obama named Person of the year 2012 by TIME Magazine: US President Barack Obama was named TIMEs Person of the Year for 2012, because of his historic win over the re-election in November 2012 which is being considered as symbol of the nations changing demographics amid the backdrop of high unemployment and other challenges. His name was announced by TIME editor Rick Stengel. It is the second time Barack Obama is being accorded with this honour. He had also received the honour in 2008, when he was first elected as president. 7) P. Chidambaram awarded with the Best Administrator in India Award. The award was presented to him by Vice President of India, M. Hamid Ansari. The award is given to him for his role in evolving indian economy as Finance Minister in the late 1990s when he presented what was widely called a dream budget which gave a road map for economic reforms in India and lowered income and corporate tax rates. 8) Ranjit Sinha, Senior IPS officer took over as CBI director. He had served in CBI agency initially as the DIG and joint director as well. 9) General Motors India appointed Rajesh Singh as the new Vice President-Sales, Marketing and Aftersales. He will take the office from 1 January 2013 and will be responsible for the complete vehicle sales, servicing and marketing (VSSM) function of GM India. Rajesh Singh is replacing Ashwani Muppasani who had assumed the VSSM leadership role on an interim basis in August 2012. On the other hand Ashwani Muppasani will move on to a new role in General Motors. 10) India won the 3rd World Cup Kabaddi Tournament for the third consecutive time in the Mens category and second consecutive time in the Womens category. Indian men defeated arch rival Pakistan and Indian Women thrashed Malaysia. Both the finals were played at the Guru Nanak Dev Stadium in Ludhiana. 11) Mumbai, the commercial capital of India was named one among the dirtiest cities of the world in the Trip Advisors Cities Survey. Tokyo streets are ranked no. 1 in cleanest,safety, best public transportation as well as best taxi services. 12) Naina Lal Kidwai took over as President of FICCI (Federation of Indian Chambers of Commerce and Industry), becoming the first woman to head the leading industry body. 13) Pandit Ravi Shankar, the sitar maestro would be honoured with the Grammy Lifetime Achievement Award posthumously. He would become first Indian to receive the prestigious award. The award would be presented at 55th Grammy Awards ceremony on 10 February 2013 in Los Angeles. He is a three-time Grammy Award winner.

14) Scientists from NASA spotted the longest extra-terrestrial river system ever on Saturns moon Titan which appears to be a miniature version of Earths Nile River. 15) United Nations gave Vinod Rai, the current comptroller and auditor general (CAG) of India a second term as the designation of chairman of UN Panel of External Auditors for 2013. 16) Narendra Modi wins record third time term as the chief minister of Gujarat. He is firming up his chances of being nominated by the BJP for running for prime minister in 2014. 17) Bihars public grievance redressal website received the Silver Icon Web Ratna Award 2012. The website has been developed by the state government as an e-governance initiative and has various features for quick and transparent disposal of complaints. 18) The Nobel Peace Prize 2012 was awarded to the European Union (EU) leaders. The award was given to the European Union leaders for the efforts in promotion of peace as well as human rights. 19) The Union government of India appointed Parthasarathi Shome, the tax expert, as the adviser to finance minister P Chidambaram. Shome was appointed with a rank of minister of state. For past few months, he was also associated with acquiring back the investor confidence. He was the head of committee on General Anti-Avoidance Rules (GAAR) as well as retrospective amendments. 20) Congress chief Sonia Gandhi ranked at number 12 and Prime Minister Manmohan Singh ranked number 19 in the list of top 20 most powerful people in the world by theForbes Magazine in annual power rankings. Enjoying the first position for the second year consecutively is the US President Barrack Obama. 21) PVR, the multiplex chain operator in India acquired 69.3 percent stake in Cinemax India for an amount of 395 crore Rupees in order to enhance its presence in India. Cinemax owned by Kanakia Group has its ventures in hospitality, education as well as real estate sectors. 22) The biggest ever black hole discovered in the small galaxy called NGC 1277 which is situated around 250 million light years away from our planet. This galaxy constitutes the mass equal to 17 billion suns. This gigantic black hole forms around 14 percent of the mass of host galaxy. When compared with the 0.1 per cent of the usual black hole.