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Here are answers to the technical questions for the **SBI cashier post**:
**Banking and Financial Awareness**
1. What is a demand draft, and how does it differ from a cheque?
A demand draft (DD) is a pre-paid negotiable instrument issued by a bank, guaranteeing payment to the payee. Unlike a cheque, it is not subject to dishonor due to insufficient funds as it is issued by the bank after debiting the amount from the account holder.
2. Explain the concept of the cash reserve ratio (CRR).
CRR is the percentage of a bank's total deposits that must be kept as reserves with the Reserve Bank of India (RBI). It is used by the RBI to control liquidity in the economy. CRR rate is 4.5%
3. What are negotiable instruments? Provide examples.
Negotiable instruments are documents guaranteeing payment of a specific amount to the bearer or a specified person. Examples include cheques, promissory notes, and bills of exchange.
4. What is the importance of KYC (Know Your Customer) in banking?
KYC helps banks verify the identity of customers, preventing money laundering, terrorist financing, and fraudulent activities.
5. Can you explain the different types of deposit accounts in a bank?
- Savings Account: For individual savings with moderate interest.
- Current Account: For businesses with no interest and unlimited transactions.
- Fixed Deposit (FD): A lump sum deposit for a fixed tenure earning higher interest.
- Recurring Deposit (RD): Regular monthly deposits for a fixed period earning interest.
6. What is the procedure for issuing a cheque book to a customer?
The customer submits a request either online or through the branch. The bank verifies the customer’s account details and ensures no restrictions. The cheque book is issued and can be collected in person or delivered to the registered address.
7. How does the NEFT system work? What are its benefits?
NEFT (National Electronic Funds Transfer) facilitates interbank money transfer in batches. It is safe, cost-effective, and enables real-time tracking of transactions.
8. Define a non-performing asset (NPA). How does it affect a bank?
An NPA is a loan or advance for which the principal or interest payment remains overdue for 90 days. NPAs reduce the bank’s profitability and increase its financial risks.
9. What is the role of a cashier in preventing fraudulent transactions?
A cashier must verify customer identities, examine documents carefully, detect counterfeit notes, and ensure adherence to banking protocols.
10. What is a bank reconciliation statement? Why is it important?
A bank reconciliation statement matches the bank balance as per the passbook with the cash book. It identifies discrepancies and ensures accuracy in financial records.
11. What is the difference between a fixed deposit (FD) and a recurring deposit (RD)?
- FD: A lump sum deposit for a fixed tenure, earning higher interest.
- RD: Regular monthly deposits for a predetermined period, also earning interest.
12. What is the meaning of “Repo Rate” and “Reverse Repo Rate”?
- Repo Rate: The rate at which RBI lends money to commercial banks. 6.5%
- Reverse Repo Rate: The rate at which RBI borrows money from banks. 3.35%
13. What is the purpose of the Banking Ombudsman Scheme?
It is a mechanism established by RBI to address customer grievances related to banking services, such as delays in cheque clearing, issues with ATMs, and unfair charges.
14. What is priority sector lending (PSL)?
PSL refers to loans provided by banks to specific sectors like agriculture, small enterprises, and education to promote economic development and inclusivity.
15. Explain the difference between retail banking and corporate banking.
- Retail Banking: Deals with individual customers, offering services like savings accounts, loans, and credit cards.
- Corporate Banking: Caters to businesses and large organizations, offering services like loans, treasury management, and trade finance.
16. **What is a CASA account? Why is it important for banks?
CASA (Current Account Savings Account) is a type of deposit that offers low-interest rates. It is vital for banks as it provides low-cost funds to meet lending requirements.
17. What is the significance of the SLR (Statutory Liquidity Ratio)?
SLR is the percentage of a bank’s net demand and time liabilities that must be maintained in liquid assets like cash, gold, or government securities. It helps control inflation and ensures liquidity. 18%
18. What are the benefits of the PM Jan Dhan Yojana (PMJDY)?
- Provides access to financial services like savings accounts, insurance, and credit.
- Encourages financial inclusion for underprivileged sections of society.
- Promotes the habit of saving and digital transactions.
19. What is the difference between “Inward Remittance” and “Outward Remittance”?
- Inward Remittance: Money received in India from abroad.
- Outward Remittance: Money sent from India to another country.
20. What is meant by the term “Plastic Money”?
Plastic Money refers to credit cards, debit cards, and prepaid cards that are used as an alternative to cash for transactions.
21. What is ATM and ADWD?
1. ATM (Automated Teller Machine)
- Primarily used for withdrawing cash.
- Other functions include checking account balances, mini statements, PIN changes, and fund transfers (in some ATMs).
2. ADWD (Automated Deposit and Withdrawal Machine)
- Combines ATM features with cash deposit capabilities.
- Users can deposit cash directly into their account, check balances, withdraw money, and sometimes even deposit cheques.
22. Know your cheque
23. Types of cheques and their description.
1. Bearer Cheque 1. Description: A cheque payable to the person holding or presenting it at the bank. 2. Use Case: Ideal for cash payments without specifying the recipient’s name. 2. Order Cheque 1. Description: A cheque payable only to the person whose name is written on it. The word "Bearer" is struck off. 2. Use Case: Ensures payment to a specific individual.
3. Crossed Cheque
1. Description: A cheque with two parallel lines on the top-left corner. It cannot be encashed directly; the amount is credited to the payee’s bank account. 2. Use Case: Ensures secure transactions and prevents misuse. 4. Open Cheque
Description: A cheque that is not crossed, allowing it to be encashed at the bank counter.
Use Case: Quick withdrawal of funds in cash.
5. Post-Dated Cheque (PDC)
Description: A cheque with a future date mentioned, payable only on or after that date.
Use Case: Used for scheduled payments like EMIs or loan repayments. 6. Stale Cheque
Description: A cheque that is presented for payment after its validity period (usually 3 months from the date of issuance).
Use Case: Invalid after expiry; needs revalidation by the issuer.
7. Traveller’s Cheque
Description: A cheque issued for use while traveling, especially abroad. It is prepaid and can be encashed at foreign banks or establishments.
Use Case: Offers safety and ease for travelers.
8. Banker’s Cheque
Description: A cheque issued by a bank, payable within the same city, ensuring guaranteed payment.
Use Case: Used in transactions requiring assured payment, such as government tenders.
9. Self Cheque
Description: A cheque issued by the account holder to themselves, marked "Self."
Use Case: Used for cash withdrawal by the account holder.
10. Blank Cheque
Description: A cheque that is signed by the issuer but does not have any details (e.g., amount, date) filled in.
Use Case: Typically misused or used for guarantees; not recommended.
11. Dishonored Cheque
Description: A cheque that is returned unpaid by the bank due to insufficient funds or other reasons.
Use Case: Legal consequences if misused; highlights financial reliability issues.
12. Gift Cheque
Description: A cheque issued as a gift by the account holder to someone else.
Use Case: Used for gifting purposes during celebrations or events.
24. Full forms and their meanings?
1. VPA (Virtual Payment Address) - A unique identifier used in UPI transactions to send and receive money without sharing sensitive bank account details. It typically follows the format: `username@bankname`.
2. MICR (Magnetic Ink Character Recognition) - A technology used to process and clear cheques. The MICR code is a 9-digit code printed on the cheque's bottom, identifying the bank and branch involved in the transaction.
3. RBI (Reserve Bank of India) - The central banking authority in India, responsible for regulating the monetary and banking systems, issuing currency, and maintaining financial stability in the country.
4. KYC (Know Your Customer) - A process where financial institutions verify the identity and address of their customers to prevent fraud, money laundering, and other illegal activities. It involves submitting documents like ID proof, address proof, and photographs.
5. CIBIL (Credit Information Bureau (India) Limited) - A leading credit information company in India that maintains credit records of individuals and businesses. It provides credit scores and reports, which banks and lenders use to assess loan and creditworthiness.
6. IFSC (Indian Financial System Code) - A unique 11-character alphanumeric code used to identify a specific bank branch in India for electronic payment systems like NEFT, RTGS, and IMPS. It facilitates accurate and secure transactions.
25. What are the deposit and withdrawal limits?
1. Cash Deposit Limits
Per Transaction:
- Cardless Deposits via Cash Deposit Machines (CDMs): Up to ₹49,900 per transaction.
- Deposits Using SBI Debit Cards:
- With PAN Linked to Account: Up to ₹2,00,000 per transaction.
- Without PAN Linked: Up to ₹49,900 per transaction.
Per Day: - Home Branch Deposits: Generally unlimited; however, large cash deposits may require PAN details.
- Non-Home Branch Deposits: Up to ₹2,00,000 per day for certain segments like AGR/SME.
Per Year:
- Deposits exceeding ₹10 lakh in a financial year may be reported to tax authorities as per regulatory requirements.
2. Digital Transaction Limits
Per Day:
- UPI Transactions:
- Maximum Amount per Transaction: ₹1,00,000.
- Number of Transactions: Up to 10 per day.
- IMPS (Immediate Payment Service): Up to ₹5,00,000 per transaction, with an overall daily limit of ₹5,00,000.
- NEFT/RTGS (National Electronic Funds Transfer/Real-Time Gross Settlement): Up to ₹25,00,000 per transaction.
Per Year:
- No specific annual limits for digital transactions; however, large or frequent transactions may be subject to scrutiny under regulatory guidelines.
3. ATM Withdrawal Limits
- Daily Cash Withdrawal Limit:
- Minimum: ₹100.
- Maximum: ₹40,000 per day, depending on the type of debit card.
4. Branch Withdrawal Limits
- Per Day:
There is no strict daily limit for cash withdrawals from your SBI account via cheques or withdrawal forms. However, banks may require prior notice for withdrawals exceeding ₹10 lakh.
Per Year:
Tax Implications: Withdrawals exceeding ₹1 crore in a financial year attract TDS (Tax Deducted at Source) of:
2% for withdrawals above ₹1 crore.
5% if the account holder has not filed an income tax return in the last three years.
### Important Considerations:
- PAN Requirement: Deposits exceeding ₹50,000 in a single transaction may require PAN details.
26. What is banking?
Banking means keeping people’s money safe, giving loans to those who need it, and helping with money transfers or payments. **Numerical and Analytical Skills**
1. If you receive a counterfeit note, what steps should you follow?
- Mark the note as “Counterfeit.”
- Do not return it to the customer.
- Report to the bank manager and record the details as per RBI guidelines.
2. A customer deposits ₹15,000 in cash. How will you calculate the total cash balance if the opening cash balance was ₹75,000?
1. What is CBS (Core Banking Solution), and how does it help in banking operations?
CBS is a centralized system where all bank branches are connected, allowing real-time banking services. It enables faster transactions, better customer service, and easier data management.
2. How do you ensure data security while entering customer information in banking software?
- Use secure logins and encrypted systems.
- Follow the bank’s cybersecurity protocols.
- Avoid sharing passwords or leaving systems unattended.
3. Explain the role of ATMs in modern banking and how they are maintained.
ATMs allow customers to withdraw cash, deposit money, and check balances 24/7. Regular maintenance includes fill up cash, ensuring network connectivity, and troubleshooting technical issues.
4. What is the use of a passbook printing kiosk, and how does it work?
A passbook printing kiosk enables customers to update their passbooks without assistance. Customers insert their passbook, and the system prints the latest transaction details from the server.
5. Can you explain the difference between IMPS, NEFT, RTGS and UPI?
Here’s a comparison of NEFT, RTGS, IMPS, and UPI in tabular form:
processing transaction processing processing Ideal For Small to medium High-value Small to medium Small, medium, and retail transactions transactions transactions transactions
Mode of Bank branch, Bank branch, Internet/mobile Mobile apps, internet
Use Cases Routine bank transfers Large-value Urgent small or Peer-to-peer payments, transactions medium transfers retail payments
Requirements Beneficiary account Beneficiary account Beneficiary account UPI ID/VPA, mobile details + IFSC details + IFSC details + IFSC number, or QR code
Key Points: NEFT is suited for non- RTGS is best for high- IMPS is great for UPI is versatile, user- urgent transactions value, urgent quick transfers any friendly, and ideal for during working hours. transactions. time. everyday peer-to-peer and retail payments.
**Cash Management and Customer Handling**
1. How would you manage a situation where the cash register doesn’t tally with the day’s transactions?
- Recheck all entries and receipts.
- Verify the opening balance and denominations.
- Report discrepancies to the manager immediately.
2. A customer complains about a deduction in their account due to a failed ATM transaction. What steps will you take?
- Record the details of the transaction.
- Lodge a complaint in the bank’s system.
- Inform the customer about the resolution timeline (typically 7 working days).
3. If a customer asks for high-value notes, but the branch has a limited supply, how will you handle the situation?
Politely inform the customer about the limitation and provide available denominations. Offer alternatives like withdrawing from another branch or scheduling a future visit.
**General Awareness and Current Affairs**
1. What are the recent initiatives or schemes launched by SBI for retail customers?
Examples include YONO (You Only Need One), SBI’s digital banking platform, and special savings schemes like SBI Annuity Deposit Scheme and SBI FlexiPay Home Loan.
2. Explain the concept of digital wallets. Name some popular digital payment apps in India.
Digital wallets store payment information and facilitate online and offline transactions. Examples include Paytm, PhonePe, and Google Pay.
3. What is the role of RBI in the banking system?
RBI regulates and supervises banks, controls monetary policy, issues currency, and manages foreign exchange. It ensures financial stability and promotes economic growth.
4. What is SBI’s “YONO” platform, and what are its features?
YONO (You Only Need One) is SBI’s digital banking platform offering:
- One-stop access to banking services, e-commerce, and investments.
- Features like account opening, loan applications, bill payments, and fund transfers.
5. What is the SBI Green Fund?
It is an initiative by SBI to promote environmentally friendly projects, including renewable energy and sustainable agriculture.
6. What is SBI’s market share in the Indian banking industry?
As of 2024, SBI holds around 22-23% of the Indian banking sector in terms of deposits and advances.
7. What are SBI’s recent achievements in digital banking?
- Integration of AI and machine learning into customer service.
- Expansion of the YONO app user base.
- Introduction of biometric authentication for secure transactions.
8. What is SBI’s stance on financial inclusion?
SBI has played a key role in financial inclusion by:
- Offering zero-balance accounts under PMJDY.
- Establishing banking correspondents in rural areas.
- Promoting digital literacy.
9. What is the SBI “WECARE” deposit scheme?
It is a special fixed deposit scheme for senior citizens offering additional interest rates to ensure financial security in their post-retirement years.
10. How does SBI support small businesses and MSMEs?
- Provides loans under schemes like Mudra Yojana and SME Smart Score.
- Offers working capital solutions and trade finance.
- Launches digital platforms like SBI e-MUDRA for ease of access.
11. What are SBI’s recent sustainability initiatives?
- Financing green energy projects like solar and wind farms.
- Promoting paperless banking with digital platforms.
- Supporting CSR activities in education, healthcare, and environment.
12. What is SBI’s “SBI Quick” service?
SBI Quick is a missed-call banking service that allows customers to check account balance, mini statements, and other services without visiting a branch.
13. What is the recent performance of SBI in terms of profitability?
SBI has consistently reported higher net profits due to improved loan recovery, growth in retail lending, and increased digital adoption.
14. What is current FD rate?
SBI offers the Fixed Deposit (FD) interest rates for deposits below 2 crores is 6.80% for general public and 7.30% for senior citizens for 1 year to less than 2 years tenure.
