What is bank?

Bank is financial institution which accepts deposits from the public for the purpose of Lending.

Types of banks?
Nationalized banks, Private Banks, Foreign banks, Regional rural banks, Co-operative banks, industrial banks etc

What is a nationalized bank?
Banks which are owned and run by government of India are called as nationalized banks.Example: Canara bank,
syndicate bank, Vijaya bank, etc..,There are total 20 nationalized banks.

What is a Private bank?
Banks which are owned and run by individuals are called private banks. Example: karnataka bank, karurvysya bank,
lakshmivilas bank etc..,

What are foreign banks?
Banks which are foreign originated [based] are called foreign banks Example: Citi bank, YES bank etc..,

What is RBI [Reserve Bank of India], when it is established and what are its functions?
RBI established in 1935, its head office in Mumbai.Present Governor of RBI D. Subba Rao. Its functions:
Issues currency notes, Acts as bankers bank, Maintains foreign exchange reserves Maintains CRR and SLR

What is RRB'S (regional rural banks)?
Main purpose of RRBs is to improve banking habit in rural areas and save formers from money lenders.

What is RRB'S (regional rural banks)?
Main purpose of RRBs is to improve banking habit in rural areas and save formers from money lenders. RRBs works
under supervision of NABARD (National Bank for Agriculture and Rural Development). NABARD head office is at
MUMBAI. Example of RRB'S: Pragathi grameena bank, Rayalaseema grameena bank etc.
Every grameena bank is so ponsered by a nationalised bank. Example: Pragathi grameena bank is spons ored by
"Canara bank". Share capital in RRBs: Central government:50%Sponsored bank: 35%State government: 15%

What are co-operative banks?
The main purpose of co-operative banks is to co-operate small scale industries, and to provide small loans. Example:
Bellary dist co-op bank etc.

What are industrial banks?
The main purpose of industrial banks is to provide big loans to large scale industries. Examples: IDBI bank, Industrial
bank of India etc..,

Types of accounts in banks?
Savings bank account [SB a/c]: The main purpose of SB a/c is to encourage small savings from the public. Interest paid
on SB a/c is 3 percent. Any individual can open SB a/c. An Indian residing at abroad can open a NRI a/c. NRI represents
non-resident Indians.

Current account: Its a running and active account. No interest is paid on current a/c. Current accounts can be opened on
firm names. Even individuals can also open current a/cs. But on firm names you cannot open SB a/c.

Fixed Deposit account: Amount is kept for a fixed period. Higher rate of interest will be paid on this a/c.

Recurring deposit [RD a/c]: A fixed amount can be deposited in monthly installments.Interest rate is same as fixed
deposits

What is crossing? Two parallel lines drawn on the top left corner of the cheque.

What is account payee cheque? Account payee cheques can be routed only through accounts.

What is a post dated cheque? The date on the cheque beyond todays date then cheque becomes post dated.

What is stale cheque? Cheque is valid for six months. If the date on the cheque is before six months, then the
cheque becomes stale cheque.

What is a mutilated cheque? It is a damaged cheque.

What is At Par cheque? It is payable anywhere in India.

What is Multi city cheque? A cheque which is payable in any branch of a particular bank.

What is Repo rate? The rate at which RBI lends money to other banks. Present repo rate 7.25 percentage.

What is Reverse Repo rate? The rate at which RBI pays interest to the banks. Present Reverse Repo rate 6.25
percentage.

Which bank is called as Central bank? RBI is also called as Central bank.

What is Internet banking? Banking through internet.

What is Inflation? It is a state where money looses the value hence prices will go up (or) Decreasing the value of
money.

What is Deflation? It is opposite to inflation. Money will have more value. Here the products loose the value.

What is Debit cum ATM card? The customer can deposit and withdraw cash by means of magnetic ATM card.

What is ATM? Automatic Teller Machine.

What is PLR and BPLR? PLR-Prime Lending Rate. BPLR-Basic Prime Lending Rate.

What is Credit card? Credit card is a plastic instrument that can be used for the purchase of goods and services. You
can buy the services and then pay the cash to the bank.Limits will be fixed based on the net worth of the customer.
Leading credit cards: VISA, MASTER.

What is an NRI a/c? NRI stands for Non Resident Indian. An Indian who is residing in abroad can open an SB a/c
in Indian banks. These accounts are called NRI a/cs.

What is RTGS and NEFT? RTGS: Real Time Gross Settlement. NEFT: National Electronic Fund Transfer.
These two are the two methods through which funds can be transferred from one bank to another bank.

What is NPA? NPA: Non Performing Asset: When a loan becomes bad then it becomes NPA.

What is online banking? Nothing but anywhere banking. A customer can operate his account from any branch of a
particular bank.
What is the difference between cheque and Demand Draft? A cheque is basically issued by an individual but a draft
is issued by a bank. In a demand draft you have to pay before issuing while a check is withdrawn from the account.
What is the difference between Private bank Nationalized bank? Nationalized banks are also known as public sector
banks where the government is responsible for the deposition of money in these banks while in a private bank money is
deposited by the person who owns the bank.
What is sensex and NIFTY? Sensex and Nifty both are an index. Index is like a indicator which gives us a general
idea whether the stocks have gone up or have gone down. Nifty is an index of NSE (National Stock Exchange) while
Sensex is an index of BSE (Bomabay Stock exchange)
What is CRR rate? CRR or Cash Reverse Ratio is the amount of money that a commercial bank has to keep with the
Reserve Bank of India. If the bank increase CRR then the amount with RBI comes down and vice-versa.
What is SLR rate? :- SLR Rate is the minimum amount or percentage of the deposits that a bank has to keep with
the RBI in the form of money,gold or any other approved security. In simple terms it is the ratio between cash and some
approved security.
What is Bank Rate? Bank Rate is the interest rate at which the RBI allows finance to commercial banks. By Bank
Rate, we mean bank can regulate the level of economic activity.
Bouncing of a cheque When an account has insufficient funds the cheque is is not payable and is returned by the
bank with a reason Exceeds arrangement or funds insufficient.
Cheque It is written by an individual to transfer amount between two accounts of the same bank or a different bank
and the money is withdrawn form the account.
Core Banking Solutions (CBS) In this all the branches of the bank are connected together and the customer can
access his/her funds or transactions from any other branch.
Debit Card It is a card issued by the bank so the customers can withdraw their money from their account
electronically.
Demat Account The way in which a bank keeps money in a deposit account in the same way the Depository
company converts share certificates into electronic form and keep them in a Demat account.
E-Banking It is a type of banking in which we can conduct financial transactions electronically. RTGS, Credit cards,
Debit cards etc come under this category.
EFT (Electronic Fund Transfer) In this we use Automatic teller machine, wire transfer and computers to move funds
between different accounts in different or same bank.
Fiscal Deficit It is the amount of Funds borrowed by the government to meet the expenditures.
Initial Public Offering (IPO) It is the time when a company makes the first offering of the shares to the pubic.
Leverage Ratio It is a financial ratio which gives us an idea or a measure of a companys ability to meet its financial
losses.
Liquidity It is the ability of converting an investment quickly into cash with no loss in value.
Market Capitalization The product of the share price and number of the companys outstanding ordinary shares.
Mortgage It is a kind of security which one offers for taking an advance or loan from someone.
Mutual Fund These are investment schemes. It pools money from various investors in order to purchase securities.
Pass Book It is a book where all the bank transactions are recorded. They are mainly issued to Current or Savings
Bank account holders.
Repo Rate Commercial banks borrow funds by the RBI if there is any shortage in the form of rupees. If this rate
increases it becomes expensive to borrow money from RBI and vice versa.
Savings Bank Account It is account of nominal interest which can only be used for personal purpose and which has
some restrictions on withdrawal.
Universal Banking When financial institutions and banks undertake activities related to banking like investment,
issue of debit and credit card etc then it is known as universal banking.
Virtual Banking Internet banking is sometimes known as virtual banking. It is called so because it has no bricks
and boundaries. It is controlled by the World Wide Web.
Wholesale Banking It is similar to retail banking with a slight difference that it mainly focuses on the financial needs
of the institutional clients and the industry.
How many types of business transactions are there in accounting?
There are two types of transactions in accounting i.e. revenue and capital.
What is balance sheet?
It is a statement that states all the liabilities and assets of the company at certain point.
Have you ever heard about TDS, what it is? Yes, TDS abbreviates Tax Deduction at Source.

In balance sheet, where do you show TDS? It is shown on the assets section, right after the head current asset.

Do you have any idea about Service Tax or Excise? It is a kind of hidden tax that is included in the service provided by
the service provider and paid by the service receiver.
What is tally accounting?
It is the software used for accounting in small business and shops for managing routine accounting transactions.
Define fictitious assets?
These are the assets that cannot be shown or touch. Fictitious assets can only be felt such as good will, rights etc.

Citibank is the consumer banking division of financial services multinational Citigroup. Citibank was
founded in 1812 as the City Bank of New York, later First National City Bank of New York.
Citibank is a global bank with 3,777

branch locations in 36 countries
In addition to standard banking transactions, Citibank markets insurance, credit cards and investment products. Their
online services division is among the most successful in the field
[3]
claiming about 15 million users. Citibank India is an
Indian private sector bank headquartered in Mumbai, Maharashtra. Citi offers consumers and institutions a broad range
of financial products and services, including consumer banking and credit, corporate and investment banking, securities
brokerage, and wealth management.