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hat is the future of banking, central banking and financial intermediation in a world in which cryptocurrency is dominant? Let’s speculate a bit, with the proviso that no one can fully anticipate how these markets will evolve.It is no wonder that the ruling class is concerned.Firstly I will recommend Allcoinhodler Cryptocurrency Investment Platform (www.allcoinhodler,com) as it is relatively new (launched at mid-summer 2017) but has become the largest cryptocurrency Investment Platform there is right now (total volume over 4 billion dollars) where you get double of your invested cryptocurrency after 7 days. Supports variety of cryptocurrency like Bitcoin, Ethereum, Bitcoin Cash and Litecoin. I find that it has a really nice UI and support.We can find hints in the speech by IMF head Christine Lagarde at a Bank of England conference in September 2017. She dropped some words that likely sent some chills down a few spines in the audience. She explained that cryptocurrency is not a passing fad but a genuine innovation in money. The only remaining barriers to widespread adoption are technical, fixable and likely to be overcome as the sector develops. This, she argued, has profound implications for the future of financial intermediation and central banks.“In the future,” she explained, “we might keep minimal balances for payment services on electronic wallets. The remaining balances may be kept in mutual funds, or invested in peer-to-peer lending platforms with an edge in big data and artificial intelligence for automatic credit scoring … Some would argue that this puts a question mark on the fractional banking model we know today, if there are fewer bank deposits and money flows into the economy through new channels.”She continued to press the point, as it relates directly to the Bank of England and the Federal Reserve.“How would monetary policy be set in this context? Today’s central banks typically affect asset prices through primary dealers, or big banks, to which they provide liquidity at fixed prices — so-called open-market operations. But if these banks were to become less relevant in the new financial world, and demand for central bank balances were to diminish, could monetary policy transmission remain as effective?”She put a question mark after that last sentence, but she might as well have made the statement: Monetary policy cannot be effective in this world. In fact, it is worse. It might not matter at all.It’s an astonishing thing to consider. For more than a century, academics, regulators, captains of finance and high-level government officials have worked to find the perfect monetary policy to stabilize the macroeconomy, provide liquidity for growth without inflation and otherwise become masters of economic planning.But this entire machinery is premised on two important conditions. First, the government must have the monopoly on money. It has held this for more than a century. Government prints the money, controls its supply, imposes legal tender and regulates against the enforcement of contracts denominated in unofficial currency. And second, most of this money has to be held in some way in the banking system. If you take away both of those, the cause of central banking has a serious problem pursuing any form of monetary planning at all.That is indeed a very different world. And it is no wonder that the ruling class is concerned.Today, banks like JPMorgan and Goldman Sachs are experimenting with blockchain technology and cryptoassets. And Lagarde’s own statement might be seen to portend the issuance of a new global cryptocurrency to replace the Special Drawing Right. The core problem of these large-scale attempts to reproduce the power of the distributed ledger is that it might be too little, too late. The model of a new world of banking and credit is already revealing itself.Would Banks Exist?How is conventional banking affected by cryptocurrency? Lagarde offers that it raises questions about fractional-reserve banking, the practice of keeping fewer deposits on hand than can be immediately paid out to customers at any one time. The practice has been well established for hundreds of years, and yet it can lead to unwarranted expansions of credit and fuel system-wide instability.Consider the history of banking. What was the purpose of the bank? There have been traditionally three primary functions that banks have provided since the ancient world.The first has been to provide safe storage for money itself. This is the warehousing function. It is essential and worth paying for. People need a safe place to store their money.That money needed a warehouse has always been taken for granted.The second is the loan function. The more credible the warehousing function becomes, the more the bank is in the position to leverage its specie holdings for its credit-granting functions. This is the origin of fractional-reserve banking. The bank cannot pay all depositors on demand. Instead, it relies on its financial soundness and a rate of return for depositors who entrust the bank with the responsibility of maintaining its balance sheet.The third is the clearing system. Because there is always counterparty risk in such transactions — the bank and the depositor must trust each other to tell the truth and make good on promises — the system settles transactions and certifies that all promises to pay have been kept. In the period between the transaction and the clearing, money becomes a credit issued and accepted based on trust.What happens to these three functions in a crypto-based monetary economy? Let’s go through them.WarehousingThat money needed a warehouse has always been taken for granted. This was a technological limitation of salt, gold, silver and so on. Specie takes up space. You need a secure space for it. It is also weighty and impractical for moving from space to space by a single individual. Murray Rothbard, in his book “Mystery of Banking,” regrets that these factors even exist and pointedly says that if people had carried coins rather than relying on paper money from banks, we could have avoided a century of financial panic and inflation. That’s a theoretically sound point that runs into practical limitations. The reason for notes to represent specie is to facilitate trade in a way that meets the needs of consumers.However, thanks to Bitcoin, we can now see that this warehousing service was in demand due to physical factors and not fundamental ones. Bitcoin has all the attributes of traditional money but adds two advantages: it is weightless and takes up no physical space.The money is “stored” in the cloud on the blockchain. The personal wallet serves the function of providing access via double-key cryptography. If you have your private key — and this can be on physical paper or on a device not even connected to the internet — you have all you need to set up your own private banking empire. Anyone in the world can do it without trust relationships, personal identification or credit history. The institutions that seem like banks — services like Coinbase that hold your key for you — maintain a full-reserve policy or risk losing the trust of their customers.It is impossible to anticipate what kinds of crypto-derivatives will end up being securitized and traded in the future. Surely, the last nine years of the previously impossible should cause everyone to be humble in their predictive outlook. That said, there is good reason to believe that the diminution of counterparty risk inherent in every non-cash transaction will drive markets toward greater accountability in every sense. And this alone might solve the age-old debate about fractional versus full reserves with the best possible resolution.Ownership titles are rearranged when the transaction is confirmed in the ledger.The question does not have to be resolved by intellectuals and policies. It is settled by the market, so long as technology permits people to pay for goods and services with a spaceless and weightless money that requires no warehousing.ClearingAs for clearing, the single most difficult-to-grasp feature of Bitcoin is the manner in which it reduces or eliminates counterparty risk associated with monetary exchange. Transactions are cleared as they are made. This has never before been possible in the history of money and finance on a geographically noncontiguous basis. With traditional money, for clearing to occur instantly, you have to actually be there, trading physical dollars for goods and services.Cryptocurrency reproduces this exact financial arrangement on a peer-to-peer basis between any two individuals anywhere in the world. You are literally trading your stuff for his or her stuff. Ownership titles are rearranged when the transaction is confirmed in the ledger.What role is then here for traditional banks to be the guardians of settlement? When it comes to clearing services, so far as I can tell, that role is eliminated for all transactions that are settled in the instant of their confirmation (the time delay involved in moving crypto is nothing more than a delay; it creates no credits).What About Credit?We are habituated into thinking that the whole world runs on credit. That’s because it does. This isn’t because we are financially irresponsible, are unable to say no, absolutely adore large financial institutions or are willing to pay high rates of interest. It’s because the sophistication of modern financial technology has been hobbled by old-fashioned payment technology that still operates today the way it did in the time of the Medicis.Every transaction today is either based on cash or credit.In any case, the fundamentals are the same in conventional finance today as compared with the Medicis. It still relies on trust relationships, credit instruments that represent property but do not embody it, and a time delay for transactions to clear. As a result, every transaction that is not conducted in person via cash depends on some extension of credit and thus involves intermediating third parties, and that in turn necessarily involves some counterparty risk.It is fascinating how little we understand this today, but the truth becomes obvious on close examination: Every transaction today is either based on cash (instant title exchange and clearing) or credit (which involves trust relationships and counterparty risk). Services like Venmo, Google Payments, PayPal or dozens of others are no different in this respect from Visa, Mastercard or American Express. They can be more or less expensive, charge different user fees, and employ different interfaces and security protocols.But in the end, these services all rely on credit terms and do not offer instant clearing. They simply cannot because the decrepit technology of national monies does not allow it. The features of current monetary finance–centralization, trust relationships, credit expansion, ubiquitous counterparty risk, plus massive security threats–all follow from the technological limitations of national money.Cryptocurrency as a means of facilitating exchange is different in another respect. Its value is not tied to a nationalized currency at all. Not only that, it has no value as a commodity or asset at all. Its value is based on the use value of services provided by the cloud-based distributed ledger.Money Substitutes Under CryptoThe massive use of credit-based exchanges as we see in national monies would not exist in Bitcoin precisely because the technology disintermediates the financial industry, removing both the need for trust relationships as well as clearing services. Might there emerge a market for crypto-substitute monetary derivatives? Only the evolution of these markets can reveal this for sure, but this much remains true. It will not be about creating new money being allowed by the protocol. The distinction between money and money substitutes will be clear and not obscured by retrograde documentation technology.At the same time, the scaling problem of prevailing blockchain solutions will likely necessitate a convention of using off-chain platforms for smaller transactions, as Nick Szabo has suggested. Such transactions do involve counterparty risk but not credit creation as such; such networks operate more like debit cards. The main blockchains will likely be used for final settlements while “lightning networks” become trust-based credit tools (money substitutes) — by choice but not by necessity.This was already foreseen by the earliest commentators and players in the Bitcoin space. The first person to receive Bitcoin from Satoshi was Hal Finney. In December 2010, he posted the following note concerning how banks and credit might work. He imagines something of a new role for banks in helping Bitcoin to scale.Actually there is a very good reason for Bitcoin-backed banks to exist, issuing their own digital cash currency, redeemable for bitcoins. Bitcoin itself cannot scale to have every single financial transaction in the world be broadcast to everyone and included in the block chain. There needs to be a secondary level of payment systems which is lighter weight and more efficient. Likewise, the time needed for Bitcoin transactions to finalize will be impractical for medium to large value purchases.Bitcoin backed banks will solve these problems. They can work like banks did before nationalization of currency. Different banks can have different policies, some more aggressive, some more conservative. Some would be fractional reserve while others may be 100% Bitcoin backed. Interest rates may vary. Cash from some banks may trade at a discount to that from others.George Selgin has worked out the theory of competitive free banking in detail, and he argues that such a system would be stable, inflation resistant and self-regulating.I believe this will be the ultimate fate of Bitcoin, to be the "high-powered money" that serves as a reserve currency for banks that issue their own digital cash. Most Bitcoin transactions will occur between banks, to settle net transfers. Bitcoin transactions by private individuals will be as rare as... well, as Bitcoin based purchases are today.Additionally, the massive industry associated with credit-based transactions includes a vast machinery of fraud prevention and prevention of identity theft. This is also made unnecessary because identity is cryptographic and not personal.Credit MarketsAll this said, there is still a role for credit markets in cryptocurrency. They emerge precisely as they would in a purely specie-based monetary regime in which everyone carried around their own coins or stored them in the home. If you have excess monetary reserves in your own possession, you may be willing to loan them for others to use and do so at a profit. In order to reduce the risk of default and guarantee your investment, you need collateral; this can take any form. You also need to establish a trust relationship, same as with any other loan market.The difference is subtle but foundational. When you loan virtual money, you lose title to that money, just as if you had transferred physical property. Contractual terms would specify the ways in which a later exchange would occur in accordance with the terms of use. Again, the way to think about this is how it works in a cash economy: You loan a friend $20 and hand him cash. You cannot get it back by force. As the lender you rely on establishing a contractual relationship that creates expectations for future payment, along with some measure of risk.These markets have already developed. Companies like Bitbond and BTCPOP offer services both for lending money and borrowing money, with the terms of exchange favoring both parties. For now, such standalone services are risky simply because the upstart sector is replete with sketchy schemes and fraud (“Lend your BTC to me and I will pay you back, I promise.”).Much more promising is a simple margin lender service provided by dollar/Bitcoin exchanges themselves. The borrower does not take direct possession of the coins but is rather extended by the exchange at the behest of the customer who wants to earn a regular rate of return. An example is the lending service provided by Poloniex. The trouble these markets have so far encountered is that holding crypto is more profitable than lending it at prevailing rates. This might not always be true.As these markets develop, it would not be a surprise to discover that the rate of return for the lender would be above the rate one would earn from nationalized money. The risk of default would not be guaranteed in any way as with government-backed financial institutions, much less a central bank that is capable of printing unlimited amounts of money. On the other hand, this would also eliminate the moral hazard of making unwise loans or securitizing debt obligations without proper documentation, such as happened during the housing bubble.In the century of central banking, we’ve seen interest rates decline inexorably and the terms of credit issuance shifting dramatically to favor longer terms, ever less collateral and ever more confusing titles for ownership. In cryptocurrency-based credit markets, we are likely to see the opposite trend: shorter terms, higher collateral requirements, very clear titles demarcating indisputable rights of ownership and enforcement of terms built into lending protocols.The Future of Sound MoneyChristine Lagarde is right: There are dramatic challenges to the status quo that are being offered up by the advent of cryptocurrency. Monetary exchange will operate the same as cash exchange, and the sophistication of our payment and settlement technologies will sync up with the sophistication of our financial tools.In some respects, cryptocurrency might appear to be more stingy than our current highly leveraged, unstable and centrally regulated systems. In contrast, the new world will be financially sound, stable, radically disintermediated, decentralized and democratized because anyone, of any financial means and access to financial institutions, can participate within it.We’ve only begun to think about what a radical change it would be if our money actually gained value over time (as crypto has for nine years, and the dollar did in the late 19th century), so that you actually grow more wealthy merely by not spending. Such a change would be huge, not only for finance but also for the culture at large.For more than a century, the banking system has been used to fund the state, destabilize the economy, loot private savings, exclude people who don’t have access, promote financial dependency and even make violence possible on an unprecedented scale, all because we didn’t have a different technology for making possible monetary exchange. That monopoly is now being shattered. Sound money is born. The panic of the ruling class has just begun.

Q) With the rise of Square Wallet, PayPal, Google Wallet and services such as AirBnB, Uber transactions which would previously have been Card Present are likely now considered Card Not Present?A) They are currently considered Card Not Present and not Retail Keyed or Retail Swiped Card present.Q) Transaction costs, who is absorbing it? Merchants? Payments Processors?A) In the end you and I are. This is not so simple to answer. Ultimately the customer pays the cost a merchant experiences as higher costs to goods and service rendered. However the actual wholesale cost in many case are subsidized in most cases If the company handling the transaction is a startup. In this case the investors in the company are subsidized transaction costs to perhaps create price uniformity/simplicity and to compete while growing big. Obviously the only sustainable model is passing true costs on to the merchant.Q) Are payments processors open to using GeoIP data, social graph and other artifacts in lieu of magstripe?A) To arrive at a satisfactory answer, we first need to establish the ingredients that compose the final rate a merchant will be charged for a typical transaction.This is not as simple as most believe. There is a tremendous amount of work that goes into a transaction.Many that are new to this subject see just the surface and not the detail. Thus it is assumed that too much money is taken on a transaction basis for something that appears to be trivial. It is widely assumed that by having more social and location data there is lower risk processing a transaction this may or may not prove to be true, but this is just part of the thinking that goes into a cost of a typical transaction.The complexity is reveled below illustrating a typical credit card transaction that breaks down to banks, the merchant and the consumer.Transaction flow:A) Authorization Process1. The cardholder presents a payment card for goods and/or services to the merchant.2. The merchant swipes card or calls in for authorization. The information is sent to the merchant acquiring Bank, and from there is routed to the payment card company. The payment card company contacts the cardholder’s bank to ensure that the desired funds are available or if the card was reported lost or stolen. The response is transmitted back through the chain and is delivered to the merchant. If the authorization request was accepted, the transaction is complete; if the request is denied, the merchant is notified of a decline. This process is completed within seconds.B) Clearing and Settlement Process3. Merchant sends batch of transactions to the merchant acquiring Bank.4. The merchant acquiring Bank sends the information to the payment card companies, who in turn send the information on to the respective cardholders’ banks. The merchant acquiring Bank applies a processing fee for this service.5. The payment card companies debit the cardholder’s bank for the amount of the transaction minus interchange fees, and credits the merchant acquiring Bank minus interchange fees. The payment card company also applies an assessment fee for transmitting the data to the respective cardholders’ banks6. The cardholder’s bank posts the transaction to the cardholder’s account, and once a month sends a statement to the cardholder. The cardholder then sends a payment to their bank.7. The merchant acquiring Bank credits the merchant’s checking account for the amount of the transactions.Fees Defined:The Discount Fee Or Merchant Rate - This varies but comprises three basic components:Interchange Reimbursement Fee - Fee assessed by the cardholder’s bank for maintaining the authorization/settlement infra-structure. This is the largest component of the Discount Fee, about 85%.Assessment Fees and Dues - Fee assessed by the payment card companies for routing of information to individual cardholder banks, and for use of Stand-In-Processing (STIP) should the cardholder’s bank be unavailable to authorize the transaction. This component is about 2% of the fees collected.Processing Fee(s) - Fee assessed by the merchant acquiring Bank for transmitting authorization requests, settlement information and insuring the integrity of the transaction by supplying a transaction solution. The transaction solution, eg: Payment Card Accepting Device/Software must also be fully PCI complaint and fault tolerant (eg. immune to crashes and communication errors). This component rounds out the remainder of fees collected, usually about +/- 10%.The DetailsNow that we see that there are a number of participants we can now add in companies like Stripe, Square, PayPal, Google, Braintree, Processors and ISOs (Independent reseller of the merchant acquiring Bank). All of these entities are in the last mile between the merchant and the merchant acquiring Bank.A recent example is Square's new processing relationship with Starbucks, in reality Square in this relationship, is primarily functioning as an ISO for Chase Paymentech (the processor) and Chase Bank (the merchant acquiring Bank). The flow of the transaction for Starbucks, bypasses Square's computers and software almost entirely when the transaction is processed by Starbucks traditional POS system and the Symphony POS software. These POS transactions flow through the 10 year old Chase Paymentech Orbital platform (a payment gateway). Square at this point has API connections to this platform and can then access the data. Square Wallet transaction take a slightly different path at this point.As the information above illustrates, companies like Stripe, Square, PayPal, Google, Braintree, Processors and ISOs only control about 10% of fees. The vast majority of the component is held in the Interchange fee and these fees are never shared with any of the other parties including Visa and MasterCard, they are fully the income of the card issuing bank.The Interchange fee is arrived at by the card associations by weighing a number of interests. Although the actual details are not openly revealed by the card associations and card issuing banks these are some of the factors that go into the setting of interchange fees:Cardholder reward points. Cardholder reward points/mile/cashback is partly paid through Interchange fees. Thus it appears that the merchant is paying for this, but in reality it is paid by the consumer as the merchant on an aggregate raise prices to cover this business expense.Business and Corporate interchange has a higher cost as the card issuing banks not only experience higher risk of loss, they have higher costs to handle certain types of business transactions.Punitive interchange rates are assessed when the processing method or venue (eg: Card not present) presents more potential for fraud and misuse.Incentivized interchange rates are assessed in business categories that card issuing banks and card associations are trying to motive more credit card usage in a very well defined business category (eg: payments for collage tuition),Fraud losses. This is an aggregated amount that card issuing banks experience from fraud of all types. This include consumer and merchant fraud losses.Costs Issuing Banks experience when cardholders do not incur interest and pay off full credit card balances.Brand and Bank marketing costsIt is also important to remember that the card issuing banks, although collect interest payments and other fees from cardholders, they also have the unsexy and not so high tech job of collecting bad debt. Think of how hard it can be collect money owed by friends, family and collage chums. Now think of the costs to collect debt from some cardholders. Some of the Interchange directly relates to this reality.Does Location Data = Less Fraud And Losses?The cost deferential between a typical Visa interchange card present and a card not present transaction:CPS/Retail 2: 1.43% + 05¢CPS Card Not Present: 1.80% + 10¢The cost differential is about 0.37% + 5¢Thus in most cases we are speaking of a relatively low cost savings under these ideal circumstances. Of course the savings would add up quite a bit for a company like Square, in fact it may make the difference of if the business model they currently use will succeed after investor money and perhaps IPO money has be depleted.The question remains does location data and perhaps social network data translate to lower fraud costs? Does it replace the many obvious and non obvious fraud features found on a modern credit card (eg: CVV1 data). Certainly some of the companies I have mentioned above are betting/hoping that Visa and MasterCard believe this is the case. The jury is out for this for perhaps 5 years or more. The early public data (I will not speak to private data) suggests there is little overall impact thus far.It is certain that location data and social data is being used to great effect by companies to vet and otherwise perform risk management on merchants, consumers and transactions. But this data is really more important to the risk management of companies like Stripe, Square, PayPal, Google, Braintree, Processors and ISOs. It has less of an impact on the card associations and the card issuing banks.However understand that the card associations already have location data to a great effect in a classic card present swiped transaction. The CVV1 track data was recorded and the location of the credit card machine is typically known for a vast majority of merchants.State and Federal laws on financial transactional data mixed with personal data may impact these methods also. For example, in California, lawmakers are already studying if location and financial transactional data collected at retail currently violates laws that are already in place.Visa And MasterCard Going In The Other Direction?Thus far the card associations are decidedly moving in the direction of each credit card to include more fraud control features. By 2015 just about every card in circulation in the US will have a EMV chip and/or wireless EMV chip (NFC) built in. By 2015 most merchants will need to upgraded with a simple EMV chip reader to experience the most favorable fraud protection and perhaps most favorable rates. The transfer of fraud liability and the potential of lower fees and even free terminal upgrades has not created a rush for merchant s to change. This is and always has been the case with the 90% of merchants who I call Practical and Pragmatic. These merchants have dashed the hopes and dreams of 100s of tech startups over the last 30 years.The Virtual Wallet TaxIt gets worse, recently MasterCard has created a new rate case for virtual wallets like the PayPal wallet and the Square Wallet. Called the Staged Digital Wallet Operator Annual Network Access Fee. It appears that Visa may likely follow, as is usually the case in these situations, with its own fee. If this takes place, there would be a rather large disincentive to be offering a virtual wallet. These fees will have an impact on profits, but companies like PayPal also aggregate funds from other sources, eg. eBay sales and ACH check funding and therefore the impact will be limited. The big impact from these fees will be with virtual wallets companies that use Visa and MasterCard as primarily funding system. There are also potential fees that may impact companies that are using an aggregated merchant account system like Square and PayPal.The FutureAll of this not only creates financial uncertainty of business models, it seems thus far the card associations may view payments that potentially have location and social data as to be too small to consider. Although growing, this is currently <2% of total credit card volume. And getting merchants to accept EMV card scanners has been a challenge. It would be a huge magnitude challenge to motive a majority of merchants to install devices that connect EMV and Location and Social data. I have worked directly with these merchants for almost 30 years and can tell you from personal experiences, they do not in any way think the way most of us in the Tech world imagine.Endless OpportunitiesNow all of this does not look like it portends to a great future for all of us in the Tech world. I can say with certainty that there are endless opportunities for startups. Thus far I have not seen any of the companies mentioned move in this direction. However there are some stealth companies that have addressed these issues and would likely be in a good position when they go live. It is heartbreaking to see so many payment startups head down a path that has not been very productive. These paths failed not because of technology or moore's law, they failed because most of these companies did not work with people with empirical experiences they use a theoretical and perhaps an engineering mentality.I understand the drive to innovate and it is absolutely incredible. However this drive is often fostered over the realties of the Practical and Pragmatic merchant. This has been and always will be where even the most well funded and highly regarded startups fail. See "Pay By Touch" (Pay By Touch) for a very useful example.The Credit Card, It Just WorksIn the end, innovation will always be tempered by the realities of the current infrastructure. Companies like Stripe, Square, PayPal, Google, Braintree, Processors and ISOs are using the infrastructure and consumer relationships that have been built for over half a century by the card associations. Love them or not love them they built something that "just works". Would any of us want to change much if you were in this position?Your parents or grandparents are not walking around saying they hate the utter simplicity of using the payment cards they carry in the real world wallets they own. Merchants are not really saying they are unhappy with the systems in place they work remarkably well. However, they do complain about the fees and rightly so, it does have an impact. But more and more, merchants are starting to understand the concepts I presented here instinctively. They will continue to try to lower costs but they realize it will not go to zero.What is fair price to pay to accept a credit card? In the market economy we have in the US, fair prices are set by market forces and thus far the market forces have set them where they currently are. If a payment system is created that does not use the current card association infrastructure is fully accepted by merchants, perhaps something like Bitcoin (or Bitcoin), at that point market forces may change the dynamic.In the end you and I will vote for all of this, with our wallets, virtual or otherwise.

The following are some questions asked during the course of one mock interview conducted by one training institute at Chennai1) Repo rate, Current Reporate.2) Bank rate, MSF (Repo rate are rates at which commercial bank takes loan from rbi against the securities kept with RBI and marginal standing facility was released in May 2011. The main purpose was to eliminate the volatality of the overnight money market. The rates are usually 1% higher than repo.)3) Base rate4) What are the Demand Deposits and Time deposits ?(Demand deposits and term deposits differ in terms of accessibility or liquidity, and in the amount of interest that can be earned on the deposited funds. Demand deposits and term deposits refer to two different types of deposit accounts available at a bank or similar financial institution, such as a credit union.)(Time Deposit - a deposit in a bank account that cannot be withdrawn before a set date or for which notice of withdrawal is required.)5) When a minor, aged 8 comes to bank with his grandmother, will you open an account inthe name of minor ?6) Hen’s hatching Period ?7) Name the agriculture development Bank, who will provide thte subsidy to farmers for agriculture development ?8) Different types of loans for Agriculture ?9) What are the two Schemes introduced by Narendra Modi related to Banking ? Expalin10) KYC norms ? (Know your customer (KYC) is the process of a business verifying theidentity of its clients. The term is also used to refer to the bank regulation which governs these activities.)11) Which document is mandatory for the customer to deposit around ` 1 crore ?12) Balance Sheet - Details13) Will you work in rural areas ?14) What is the purpose of Commercial Banks & Development Banks ? Name two each?15) What is the minimum and maximum period of Fixed Deposit ?16) Procedures to Deposit Money17) What is the NOSTRO account ?18) What is the meaning of Negotiable ?19) What are the Non-Negotiable instruments ?20) What is special crossing? (Often cheques are crossed with two parallel transverse lines and in between the two parallel lines the words “a/c payee "or “a/c payee only "are written. - This means that the proceeds of the cheque are to be credited to the account of the payee only. - This type of crossing is also called “restrictive crossing”)21) What you willdo when the cheque is crossed by two banks ?22) Can NABARD give loans to Farmers ?23) What is the expansion of UAV ?24) What are the deposits available in Bank ?25) What is PMJDY Scheme ?Pradhan Mantri Jan Dhan Yojana (PMJDY) is a nationwide scheme launched by Indian government in August 2014. In this scheme financial inclusion of every individual who does not have a bank account is to be achieved.The scheme will ensure financial access to everyone who was not able to get benefits of many other finance related government schemes. These financial services include Banking/ Savings & Deposit Accounts, Remittance, Credit, Insurance, Pension which will be made available to all the citizens in easy and affordable mode.26) What are the insurance in PMJDY scheme ? (Life Cover under Pradhan Mantri Jan Dhan Yojana)27) What is Your Strength & Weakness ?28) What is the facility (Irrigation) introduced by M.S.Swaminathan29) About Hobbies30) What is Bank Assurance ?31) Name some Health Insurance Companies ?32) What are the functions of an Bank ?33) Can order cheque be converted into bearer cheque ?34) Name the General Insurance Companies ?35) Validity of a cheque ?36) Meaning of Your Name ?37) About Native Place & Its specials38) Is Interview Necessary ?39) D/B Simple Interest & Compound Interest40) Parties of Cheque?41) Present RBI Governor ?42) First RBI Governor?43) First Indian RBI Governor ?44) R/B Banker & Customer, mentioned in which ACT ?45) Security features in ATM room ?46) If a customer (VIP) deposits a Counterfeit notes, what will you do ?Counterfeit money is imitation currency produced without the legal sanction of the state or government. Producing or using counterfeit money is a form of fraud or forgery. Counter feiting is almost as old as money itself47) Who received Bharat Ratna Award recently ?48) What is the name of signature behind the cheque?49) Value of IT rabate.50) CAMELS abbreviations ?(Capital, Asset Quality, Management, Earnings, Liquidity, and Sensitivity (creditworthiness assessment system)51) IFSC code used for ?52) Banking Ombudsman ?(The Banking Ombudsman Scheme enables an expeditious and inexpensive forum to bank customers for resolution of complaints relating to certain services rendered by banks. The Banking Ombudsman Scheme is introduced under Section 35 A of the Banking Regulation Act, 1949 by RBI with effect from 1995.)53) Who is the Present President of India ?54) Whos is the Present Finance Minister ?55) Tamilnadu CM Jayalalitha case heared in ? (Bangalore, Karnataka)56) Whom confirm Jayalalith case verdict ?57) Whom release Jayalalitha verdict case ?58) Which loans are provided to a person to manufacture the product ? e.g., Water bottle59) Letter of Credit means ? (a letter issued by a bank to another bank (especially one in a different country) to serve as a guarantee for payments made to a specified person under specified conditions.)60) Bank Guarantees means? (A guarantee from a lending institution ensuring that the liabilities of a debtor will be met. In other words, if the debtor fails to settle a debt, the bank will cover it.)61) Situation Question : When you are working as a PO in Public sector bank, And near of your branch, So many Private and Public sector banks are there. And How will you attract the people towards your bank?62) Non performing assets ? (A Non-performing asset (NPA) is defined as a credit facility in respect of which the interest and/or installment of principal has remained 'past due' for a specified period of time. In simple terms, an asset is tagged as non performing when it ceases to generate income for the lender.)63) Chennai Flood Related Questons64) Who are all scored Double century in ODI cricket?65) What is Recent record in Cricket ?66) Difference between FCNR & RFC ?67) What is your part during Chennai floods ?68) What is the meaning of your name ?69) Situation Question : What will you do if your husband gets foreign opportunity, You will quit the job. So, why should we select you?70) Chairman of SBI71) Situation Question : Suppose if you are an Assistant Manager, only you and clerk are in the bank. A person comes and deposits a huge amount, then two robbers comes and threatens you with knife to give them money. What will you do?72) Para Banking ? (Banks can undertake certain eligible financial services or para-banking activities either departmentally or by setting up subsidiaries. Banks may form a subsidiary company for undertaking the types of businesses which a banking company is otherwise permitted to undertake, with prior approval of Reserve Bank of India.)73) Retail Banking ? (Retail banking also known as Consumer Banking is the provision of services by a bank to individual consumers, rather than to companies, corporations or other banks. Services offered include savings and transactional accounts, mortgages, personal loans, debit cards, and credit cards)74) What are the documents you should have when you drive a 2-wheeler?75) RC book is issued by which authority ?76) Services of ATM77) Which bank cancelled withdrawal receipt issue recently ?78) Who is Chennai Mayor ?79) Three principles of Insurance ?80) What you have to check, if you buy a land ?81) Life & Non-Life Insurance ?82) Hobbies : What are the novels have read ?83) Questions related to Cooking ?84) Positive & Negative points about urself ?85) Who issued EC certificate which is related to housing ?86) Off-sheet Balance items87) I opend an account in a bank & name my wife as a nominee, should we tell that she is the nominee person for the account opened by her spouse?88) What is the Sundry debtors ?89) Where is your spouse working ?90) Did you help him in his work ?91) Auto loans proof ?92) What is Pay slip ?93) What is withdrawal slip ?94) If you want to transfer your account from UP to Tamil Nadu, what are the documents yourequire?95) What is DRA ? (The Developmental Reading Assessment (DRA) is a standardized reading test used to determine a student's instructional level in reading. The DRA is administered individually to students by teachers and/or reading specialists.96) Chief of three Defence Forces?97) Recently our Prime Minister, visited unexpectedly to which country ? Was the motive good or not ?98) Priority sector advances (Priority sector refers to those sectors of the economy which may not get timely and adequate credit in the absence of this special dispensation. Typically, these are small value loans to farmers for agriculture and allied activities, micro and smallenterprises, poor people for housing, students for education and other low income groups and weaker sections.)99) No of states, recently included states ?100) Chief Minister of Telangana ?101) Types of debentures102) How many payment banks are there ?103) Who is M.S.Subulakshmi104) What is correspondent bank ?105) What is soft bank ?106) Tell about your family107) How to identify counterfeit notes ?108) What is depreciation in Balance Sheet ?109) Women Chief Ministers of India110) What are the subsidy for Housing for all schemes ? Why only women are eligible?111) Tell me five famous womens of India112) Situation Question : When a person from Rural Area has got a loan and he is not giving back and you are given the responsibility to collect it from him. What you’ll do?113) What is hard copy ?114) How you’ll arrange mirror imaged icons in PC screen ?115) Balance Sheet Items - Assets & Liabilities116) Working Capital ratio117) Current ratio118) Max loan granted by payment banks - No loanHow do payment banks earn ? - Through RemittancesWhat are remittancesNo of Payment Banks119) Does required to be verified from the cust who wants to avail Housing loan ?120) About Tatkal Banking121) Explain in Tamil, any 2 functions of a bank122) NSE & BSE - No of listed companies - Name some PSU’s listed ?123) Name few PSB’s esablished in foreign countries.124) What are the Documents required for a Proprietor firm, Partnership firm of public ltd company ?125) What is Revenue Reseve & Capital Reserve126) About DICGC : (Deposit Insurance and Credit Guarantee Corporation ( DICGC) is a subsidiary of Reserve Bank of India. It was established on 15 July 1978 under Deposit Insurance and Credit Guarantee Corporation Act, 1961 for the purpose of providinginsurance of deposits and guaranteeing of credit facilities. DICGC insures all bank deposits, such as saving, fixed, current, recurring deposits for up to the limit of Rs. 100,000 of each deposits in a bank)127) About ECGC (The ECGC Limited is a company wholly owned by the Government of India based in Mumbai, Maharashtra. It provides export credit insurance support to Indianexporters and is controlled by the Ministry of Commerce.)128) What is SDR ? (The Special Drawing Right (SDR) is an international reserve asset, created by the IMF in 1969 to supplement the existing official reserves of member countries. The SDR is neither a currency, nor a claim on the IMF. Rather, it is a potential claim on the freely usable currencies of IMF members.)129) What is MSF ? (Marginal Standing Facility (MSF) is a new scheme announced by the Reserve Bank of India (RBI) in its Monetary Policy (2011-12) and refers to the penal rate at which banks can borrow money from the central bank over and above what is available to them through the LAF window)130) About Hobbies (Mentioned No Hobbies in BIO-DATA, suggested to mention at least one hobby)131) CGTMSE(The main objective is that the lender should give importance to project viability and secure the credit facility purely on the primary security of the assets financed. The other objective is that the lender availing guarantee facility should endeavor to give composite credit to the borrowers so that the borrowers obtain both term loan and working capital facilities from a single agency. The Credit Guarantee scheme (CGS) seeks to reassure the lender that, in the event of a MSE unit, which availed collateral free credit facilities, fails to discharge its liabilities to the lender, the Guarantee Trust would make good the loss incurred by the lender up to 75 / 80/ 85 per cent of the credit facility.)132) Horizontal merger (Horizontal merger is a business consolidation that occurs between firms who operate in the same space, often as competitors offering the same good or service)133) Communication System (from my PG subject)134) Banking Hierarchy135) About Natural Guardian(A child's parent. In divorce situations, the parent with custody is considered the natural guardian. The opposite of a natural guardian is an appointed guardian or legal guardian, who must be authorized by a court or a will to care for and make decisions on behalf of a minor child. Of particular concern are financial and medical decisions; since minor childrengenerally do not have legal authority to make such decisions, their natural or legal guardian must authorize them.)136) Technical questions related to My Subject- Types of Circuits- Open circuit & closed circuit- About three phaces (RYB)- About Earthing137) Situation Question :If you are a Assistant Manager in a Bank, your superior person told you to grant loan for a person who he knows, But the documents submitted by the person is not valid, what you will do at that time ?138) Sheep loan139) Tax Deducted at source for Deposits140) Tripatriate Free Trade Agreement141) Management142) Active Voice / Passive Voice143) Current Ratio - Current Assets / Current Liabilities144) Tangible / Intangible assets(Tangible assets include both fixed assets, such as machinery, buildings and land, and current assets, such as inventory. The opposite of a tangible asset is an intangible asset. Nonphysical assets, such as patents, trademarks, copyrights, goodwill and brand recognition, are all examples of intangible assets.)145) Current / Non Current Assets(A noncurrent asset is an asset that is not likely to turn to unrestricted cash within one year of the balance sheet date. (This assumes that the company has an operating cycle of less than one year.) A noncurrent asset is also referred to as a long-term asset.)146) SBI Registred Office147) SBI Established Date148) Head Quarters of few Banks149) Difference between normal cheque and CTS150) Relationship between Depositor and Banker151) Relationship between person who is having safe deposit locker and banker.152) Emblem in currency note of Rs.500153) Emblem in currency note of Rs.10154) Break even point (In economics and business, specifically cost accounting, the break-even point (BEP) is the point at which cost or expenses and revenue are equal: there is no net loss or gain, and one has "broken even.")155) Dandi Yatra (On 12 March 1930, Gandhi and 78 satyagrahis many of them were scheduled castes, set out on foot for the coastal village of Dandi, Gujarat, over 390 kilometres (240 mi) from their starting point at Sabarmati Ashram.)156) BSBDA(Basic Savings Bank Deposit Account (BSBDA) is a Zero Balance Savings Account that takes care of your simple banking needs with Free ATM card, monthly statement, and cheque book.)157) Minimum Balance for BSBDA158) Regarding Plastic Money(Plastic money is a term that is used predominantly in reference to the hard plastic cards we use everyday in place of actual bank notes. They can come in many different forms such as cash cards, credit cards, debit cards, pre-paid cash cards and store cards.)159) Blind person conditions while Opening a Account160) Dormant Account(DEFINITION of 'Dormant Account' When there has been no financial activity for a long period of time, other than posting of interest, an account can be classified as dormant. Statute of limitations usually does not apply to dormant accounts, and funds can be claimed by the owner or beneficiary at any time.)161) ALM (Application lifecycle management (ALM) is the supervision of a software application from its initial planning through retirement. It also refers to how changes to an application are documented and tracked.)162) NPA(A Non-performing asset (NPA) is defined as a credit facility in respect of which the interest and/or installment of Bond finance principal has remained 'past due' for a specified period of time. NPA is used by financial institutions that refer to loans that are in jeopardy of default.)163) Risk faced by Banks - Market, Operational, Credit Risk ?164) Syndicate Bank Head Quarters165) Delhi - Banks Headquarters166) FCNR (It means 'Foreign Currency Non-Resident (Bank)' Account. Who can open a FCNR (B) a/c ? - The account can be opened in the name of NRI individuals (single/ joint) or with resident Indians on 'former or survivor' basis.)167) 1969 - Any four Nationalised Banks168) Financial intermediaries(an institution, such as a bank, building society, or unit-trust company, that holds funds from lenders in order to make loans to borrowers.)169) What are the Function of RBI?170) What are the Roles of a PO ?171) CRR (Cash Reserve Ratio)172) MSF (Marginal Standing Facility)173) SLR (Statutory Liquidity Ratio) - Indepth174) DICGC full Form ? (The Deposit Insurance and Credit Guarantee Corporation Act, 1961)175) MUDRAK Schemes (Micro Unit Development / Credit Guarantee Corporation176) Situation Question : A person comes in to my bank with Rs.51000/-, What is the procedure to deposit in an Account.Bank Exams PO, Coaching Centre Chennai, ibps, RRB, SSC, Bank Clerical Exams,