gdpi packet - 2018 packet_15411… · 8/19/2019 · gdpi (phase iii) 50 25 total (overall) 300 100...
TRANSCRIPT
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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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Phase/Test Max. Marks
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.
Phase/Test Max. Marks
Normalized to
Main Examination (Phase II) 225 80
GDPI (Phase III) 100 20
TOTAL (Overall) 325 100
IBPS RRB Officer Scale I
Phase/Test Max. Marks
Minimum Qualifying Marks
Personal Interview (Phase III)
100 40% (for GEN) 35% (for rest)
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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.
Final Selection will be on the basis of Marks of both Main Examination and Personal
Interview.
Phase/Test Max. Marks
Normalized to
Main Examination (Phase II) 200 80
GDPI (Phase III) 100 20
TOTAL (Overall) 300 100
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
Phase/Test Max. Marks
Minimum Qualifying Marks
Personal Interview (Phase III)
100 40% (for GEN) 35% (for rest)
Final Selection will be on the basis of Marks of both Main Examination and Personal
Interview.
Phase/Test Max. Marks
Normalized to
Main Examination (Phase II) 225 80
GDPI (Phase III) 100 20
TOTAL (Overall) 325 100
Canara Bank PO
Phase/Test Max. Marks
Minimum Qualifying Marks
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Group Discussion (Phrase III)
50
40% (for GEN) 35% (for rest)
Personal Interview (Phase III)
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.
Phase/Test Max. Marks
Normalized to
Online Test (Phase I) 200 50
Group Discussion (Phase II) 50 20
Personal Interview (Phase II) 50 30
TOTAL (Overall) 300 100
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)
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(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?
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(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?