Banking Interview Questions & Key Concepts

Essential banking concepts frequently evaluated in Grade B panels:

1. Monetary Policy Architecture

• Policy Rates: Repo Rate, Reverse Repo Rate, Standing Deposit Facility (SDF), Marginal Standing Facility (MSF).
• Reserve Requirements: Cash Reserve Ratio (CRR), Statutory Liquidity Ratio (SLR).
• Transmission Mechanism: How policy repo changes impact commercial bank lending rates (MCLR vs External Benchmark).

2. Prudential Regulation & Asset Quality

• NPA Classification: Sub-standard (up to 12 months), Doubtful (>12 months), Loss assets.
• Provisioning Norms: Provisioning Coverage Ratio (PCR) and Capital to Risk-Weighted Assets Ratio (CRAR) under Basel III norms.
• Insolvency Resolution: Insolvency and Bankruptcy Code (IBC) framework and the role of NCLT.