Expected Questions for IBPS Clerk III Exam will Held on 14 and 15-Dec-2013

1. What is legal tender?

Ans: The coins issued under the authority of Section 6 of The Coinage Act, 1906, shall be legal tender in payment or on account i.e. provided that a coin has not been defaced and has not lost weight so as to be less than such weight as may be prescribed by RBI

2. What is crossing?

Ans. Two parallel lines drawn on the top left corner of the cheque.

3. What is account payee cheque?

Ans. Account payee cheques can be routed only through accounts.

4. What is a post dated cheque?

Ans. The date on the cheque beyond today’s date then cheque becomes post dated.

5. What is stale cheque?

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

6. What is a mutilated cheque?

Ans. It is a damaged cheque.

7. What is At Par cheque?

Ans. It is payable anywhere in India.

8. What is Multi city cheque?

Ans. A cheque which is payable in any branch of a particular bank.

9. What is Repo rate?

Ans. The rate at which RBI lends money to other banks.

10. What is Reverse Repo rate?

Ans. The rate at which RBI pays interest to the banks.

11.Which bank is called as Central bank?

Ans. RBI is also called as Central bank.

12. What is Internet banking?

Ans. Banking through internet.

13. What is Inflation?

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

14. What is Deflation?

Ans. It is opposite to inflation. Money will have more value. Here the products looses the value.

15. What is Debit cum ATM card?

Ans. The customer can deposit and withdraw cash by means of magnetic ATM card.

16. What is ATM?

Ans. Automatic Teller Machine.

17. What is PLR and BPLR?

Ans. PLR – Prime Lending Rate.

BPLR – Basic Prime Lending Rate.

18. What is Credit card?

Ans. 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.

19. What is an NRI a/c?

Ans. 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.

20. What is CRR and SLR?

Ans. CRR: Cash Reserve Ratio – It is the ratio of physical cash that every bank has to keep with RBI.

SLR: Statutory Liquidity Ratio – It is the ratio of liquid assets that every bank has to keep with RBI.

21. What is RTGS and NEFT?

Ans. RTGS: Real Time Gross Settlement. Minimum limit – 2lakh. Max. limit – No limit

NEFT: National Electronic Fund Transfer.

These two are the two methods through which funds can be transferred from one bank to another bank.

No Minimum & Max. limit in NEFT.

22. What is NPA?

Ans. NPA: Non Performing Asset: When a loan becomes bad then it becomes NPA.

23. What is online banking?

Ans. Nothing but any where banking. A customer can operate his account from any branch of a particular bank.

24. What is a currency chest?

• To facilitate the distribution of banknotes and rupee coins, the Reserve Bank has authorized select branches of scheduled banks to establish Currency Chests.
• These are actually storehouses where banknotes and rupee coins are stocked on behalf of the Reserve Bank.
• As on June 30, 2006, there were 4428 Currency Chests and 4102 Small Coin Depots.
• The currency chest branches are expected to distribute banknotes and rupee coins to other bank branches in their area of operation.

25. What are soiled, mutilated and imperfect banknotes?

• “soiled note:” means a note which, has become dirty due to usage and also includes a two piece note pasted together wherein both the pieces presented belong to the same note, and form the entire note.
• Mutilated banknote is a banknote, of which a portion is missing or which is composed of more than two pieces.
• Imperfect banknote means any banknote, which is wholly or partially, obliterated, shrunk, washed, altered or indecipherable but does not include a mutilated banknote.

26. Why is One Rupee liability of the Government of India?

Ans: The Government of India derives authority to issue Rupee coins from the Coinage Act. As such the rupee coins issued by Government constitute the liabilities of the Government.

27. What is Cheque?

Ans. Cheque is a negotiable instrument containing conditional order to pay sum of money to the person mentioned on it or to the bearer of the instrument.