RRB PO Interview Guidance

 Regional Rural Banks (RRBs) are government owned scheduled commercial banks of India that operate at
regional level in different states of India. These banks are under the ownership of Ministry of
Finance, Government of India. They were created to serve rural areas with basic banking and financial
services. However, RRBs also have urban branches.
 The area of operation is limited to the area notified by the government of India covering, and it covers one or
more districts in the State. RRBs perform various functions such as providing banking facilities to rural and
semi-urban areas, carrying out government operations like disbursement of wages of MGNREGA workers
and distribution of pensions, providing para-banking facilities like locker facilities, debit and credit cards,
mobile banking, internet banking, and UPI services.
 Regional Rural Banks were established under the provisions of an ordinance passed on 26 September 1975
and the RRB Act 1976 to provide sufficient banking and credit facility for agriculture and other rural sectors.
As a result, five RRBs were set up on 2 October 1975 on the recommendations of the Narsimhan Committee
on Rural Credit, during the tenure of Indira Gandhi's government. The purpose was to include rural areas into
the economic mainstream since around 70% of the Indian population was rural.
 Prathama Bank, with head office in Moradabad, Uttar Pradesh was the first RRB. It was sponsored
by Syndicate Bank (Now Sponsored by PNB and had an authorised capital of Rs. 5 crore. The other four
RRBs were Gaur Gramin Bank (sponsored by UCO Bank), Gorakhpur Kshetriya Gramin Bank (sponsored
by State Bank of India), Haryana Kshetriya Gramin Bank (sponsored by Punjab National Bank), and Jaipur-
Nagaur Anchalik Gramin Bank (sponsored by UCO Bank).
 The RRBs were owned by the central government, state government, and the sponsoring bank with 50%,
15%, and 35% shareholding respectively.
 The Father of Regional Rural Banks in India is considered to be M. S. Swaminathan. He is renowned for his
contributions to Indian agriculture and rural development and played a significant role in the establishment
and promotion of Regional Rural Banks (RRBs) in the country. RRBs were created to provide banking services to
rural and semi-urban areas, thereby facilitating rural development and financial inclusion.

 A review of the RRBs in August 2009 by the Union Finance Minister revealed that a large number of RRBs
had a low Capital to Risk weighted Assets Ratio (CRAR). A committee was constituted in September 2009
under the chairmanship of K C Chakrabarty, the deputy governor of the Reserve Bank of India (RBI) to
analyse the financials of the RRBs and suggest measures, including re-capitalisation to bring the CRAR of
RRBs to at least 9% in a sustainable manner by 2012. The committee submitted its report in May 2010.
 The committee recommended RRBs to have a CRAR of at least 7% on 31 March 2011 and at least 9% from
31 March 2012 onwards. The recapitalization requirement of Rs 2,200.00 crore for 40 of the 82 RRBs were
to be released in two installments in 2010–11 and 2011–12. The remaining 42 RRBs will not require any
capital and will be able to maintain CRAR of at least 9% as of 31 March 2012 and thereafter, on their own. A
fund of ₹100 crore to be set up for training and capacity building of the RRB staff.
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The Government of India approved the recapitalization of the RRBs to improve their CRAR in the following
manner:

 Share of central government, that is, ₹1,100 crore will be released as per provisions made by the Department
of Expenditure in 2010-11 and 2011–12. However, release of the funds will be contingent on proportionate
release of the state government and sponsor bank share.
 A capacity building fund with a corpus of ₹100 crore to be set up by central government with NABARD for
training and capacity building of the RRB staff in the institution of NABARD and other reputed institutions.
The functioning of the fund will be periodically reviewed by the central government. An action plan will be
prepared by NABARD and sent to the government for approval.
 An additional amount of ₹700 crore was set up as a contingency fund to meet the requirement of the weak
RRBs, particularly those in the north-eastern and the eastern region.

Organizational structure
The organizational structure for RRB's varies from branch to branch and depends upon the nature and size of
business done by the branch. The head office of an RRB normally had three to nine departments. The following is
the decision making hierarchy of officials in a RRB.

 Board of Directors
 Chairman & Managing Director
 General Manager
 Assistant General Manager
 Regional Manager/Chief Manager
 Senior Manager
 Manager
 Officer
 Office Assistant
 Office Attendant
Amalgamation
 RRBs periodically go through a process of amalgamation. In January 2013, 25 RRBs were amalgamated into
10 RRBs, totaling 67 RRBs. In March 2016, there were 56 RRBs, covering 525 districts with a network of
14,494 branches. As of 1 April 2020, there are 43 RRBs in India.
 RRBs are recognized by the law and they have legal significance. The Regional Rural Banks Act, 1976
 M.Narasimham, grandson of former President S. Radhakrishnan was the first and so far the only
Governor(13th) to be appointed from the Reserve Bank cadre, having joined the central bank as a Research
Officer in the Economic Department.
 RRB PO Interview Guidance

1. What was the need of Regional rural Banks, when already Nationalised banks were working in India?
 To connect with the rural customers specially farmers with the regulated financial system
 To explain the Banking in the regional language
 To encourage public confidence in the financial system
 To provide safety to the savings of customers
 To create credit and increase the supply of money
 Main motive is Financial Inclusion
2. What is Financial Inclusion?
Financial inclusion means that individuals and businesses have access to useful and affordable financial products and
services that meet their needs – transactions, payments, savings, credit and insurance – delivered in a responsible and
sustainable way.

 Pradhan Mantri Jan Dhan Yojana (PMJDY)

 Atal Pension Yojana (APY)
 Pradhan Mantri Vaya Vandana Yojana (PMVVY)
 Stand Up India Scheme.
 Pradhan Mantri Mudra Yojana (PMMY
 Pradhan Mantri Mudra Yojana (PMMY)
 Pradhan Mantri Suraksha Bima Yojana (PMSBY)
 Sukanya Samriddhi Yojana.
 Jeevan Suraksha Bandhan Yojana.
3. Why you want to join Banking Sector?
 Banks are pillar of any Nations Economy
 For Job Stability (do not use secure, say it is a stable job)
 Fast growth (Banking Sector offers tremendous growth opportunities as candidates )
 Fast and fair selection process
 Continuing education and community service is highly encouraged
 Socially respectable job
4. Who is known as the Father of Regional Rural Banks in India
Ans: M Swaminathan
M. S. Swaminathan: Father of Green Revolution in India & Father of RRB in India From 1972 to 1979: M.
S. Swaminathan was director general of the Indian Council of Agricultural Research.
Introduction to Banking and types

1. What are Scheduled commercial banks?

2. What is the Role of Banking?

3. What are the differences between scheduled and non-scheduled Banks?

4. What are the types of banks?

 RRB PO Interview Guidance

5. What are the total number of Private bank, PSB bank, Payment bank?

6. Tell me about the Nationalisation of banks and their merger.

7. What is known as Social Banking and mass Banking?

8. Have you heard about Shadow Banking?

9. What are Universal Banks?

10. What is known as Digital Banking?

11. What is known as core Banking?

12. What are the Types of deposits?

13. Who is the Banking ombudsman?

14. Tell me the Types of ATMs?

RBI
1. Who is the present Governor of RBI?

2. What is known as Monetary policy?

3. What is the repo rate?

4. What is known as the Reverse repo rate?

5. List out Monetary Policy Committee 6 members

6. What is known as SLR?

7. What is known as MSF?

8. What do you mean by LAF?

9. Name some of the currency printing places in India.

Accounts and its Types
1. What is the savings account & current account?

2. What is BSBDA?

3. Define the Demat account.

4. What is known as Nostro Account?

5. What is known as a Small account?

6. What are the differences between NRO and NRE accounts?

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7. What do you mean by Vostro Account?

8. What is said to be an SMA account?

9. What do you know about the Escrow account?

Other Financial Institutions

1. What are the functions of NABARD?

2. What is the role of SIDBI?

3. What are Payment banks?

4. What is the Role of Cooperative Banks?

5. What is the role of EXIM Bank?

6. What are the roles of ECGC?

7. What are the differences between Foreign bank & small finance bank?

8. What is known as NBFC and give an example?

Cheque

1. What do you mean by Cheque and tell me some of its types?

2. What do you mean by Crossing of cheque?

3. What are the features of Demand Draft?

4. Mention some of the differences between cheques and Demand Draft.

5. What is the validity period of the cheque?

6. What do you mean by CTS?

Loans

1. What are the different types of loans issued by banks?

2. What are the differences between a Soft loan and a Hard loan?

3. Who is said to be the legal Heir?

4. What is said to be Loan maturity?

5. What is known as Hypothecation?

6. What is Pledge?
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7. What is Mortgage?

8. What is known as Reverse mortgage?

9. Tell me some of the differences between Credit cards and Debit cards?

10. What is known as prime Lending rate?

11. What is Hard money?

Financial Market

1. What is the money market?

2. What is a capital market?

3. What are the differences between Call money and Notice money?

4. What are Money Market Instruments?

5. What do you know about Treasury Bills?

6. What do you know about commercial paper?

7. What is Equity?

8. What is a mutual fund?

9. What do you mean by Shares?

10. What is Debentures?

Negotiable Instruments

1. What are Negotiable Instruments?

2. What is known as a promissory note?

3. What are Bill of Exchange?

4. Name the features of the Certificate of Deposit?

Priority Sector Lending

1. What is known as PSL?

2. Who is said to be a small farmer?

3. Who are marginal farmers?

4. Who are Large Farmers?

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Retail Payments

1. Explain NPCI

2. What is IMPS?

3. What is the purpose of SWIFT?

4. Define RTGS

5. Define NEFT

6. What are the features of BHIM?

7. What is ABPS?

NPA and PCA

1. What do you know about NPA?

2. How will the banks be recovered from NPA?

3. What is said to be PCA and mention its types?

4. What are the effects of NPA on the Balance Sheet?

5. What is the purpose of the SARFAESI ACT?

6. What is the aim of FEMA?

7. What is said to be AML?

 RRB PO Interview Guidance

Schemes:
1. What is Stand Up India Scheme?

2. Define the ODOP scheme.

3. What are the features of a PMJDY account?

4. Name some of the schemes launched for farmers.

5. What is PPF?

6. What are the features of the Senior citizen scheme?

7. What is the use of a Kisan credit card?

8. What is the aim of Agniveer?

9. What are the features of the MUDRA scheme?

10. Mention some of the schemes launched for the MSME sector.

11. What are the features of the New education policy?

12. What do you know about MGNREGA?

13. What do you know about Lead Bank scheme?

Mutual Funds and Share Market

1. What is known as venture Capital?

2. What do you know about Angel investment?

3. What is capital expenditure?

4. What is known as a Trade deficit?

5. What is known as a Fiscal deficit?

6. What is LIBOR?
Other Concepts in Banking
1. What is Amortization?

2. What is meant by Fiscal policy?

3. What do you know about Disinvestment?

4. What is Hard money?

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5. What is known as FPI?

6. What do you know about IPO?

7. What is Provisioning in Banking?

8. What do you mean by cost of funds?

9. What do you mean by Line of credit?

10. Define letter of credit?

11. What is known as Authorized capital?

12. What is paid up capital?

13. What is the purpose of the Balance Sheet?

14. Define CIBIL

15. What is SHG?

16. What is JLG?

17. What is the difference between Assets and Liabilities?

18. What are BASEL Norms?

Economy:
1. What is the current Dollar rate?

2. What do you think about the LIC privatization?

3. What are GST and its features?

4. What is known as GDP?

5. Define Inflation

6. Define Deflation

7. What is known as Bitcoin?

8. What is Crypto currency?

9. Define Budget

10. Why privatization of banks?

11. What do you mean by FDI?

12. What is FPI?

RRB PO Interview Guidance