300+ TOP Banking Operations Interview Questions and Answers

Q1. How Many Parties Are Required In Promissory Notes?

Basically it requires two parties. The one is maker who promises to pay and the other is payee to whom it is payable. For example a person take loan from the bank then the “person” is the “maker” and “the bank” is “payee”.

Q2. When Should Banks Not Pay The Cheque?

Bank should not pay a cheque in the following cases: Death of the drawer. Insane customers Insolvent customers On receipt of valid stop payment instruction. When cheque is post-dated. When account has insufficient fund.

Q3. How Is Cheque Is Different From Boe?

Cheque is different from bill of exchange in following ways: Cheque is valid only 6 months from the date of issue. Cheque is payable to the bearer on demand. Cheque is drawn in a bank. Notice of dishonor is not necessary in cheque.

Q4. What Are The Features Of Negotiability?

Features of Negotiability: Freely trferable by delivery (when it is bearer). Freely trferable by endorsement (when it is an order instrument). The trferee taking the instrument in good faith.

Q5. What Is 90 Days Overdue?

It’s a norm for the identification of the “Non-performing asset” (NPA) starting 31 March 2014. The norm is as follow: Interest or installment of principal remain overdue for more than ninety days in respect of term loan. The account remains out of order for the period of more than ninety days. The bill remains overdue for the period of more than ninety days. Any amount to be received is due for more than ninety days.

Q6. What Is Demand Promissory Note?

The Promissory Note which is payable immediately on demand is called “Demand Promissory Note”.

Q7. Name Some Negotiable Instruments.?

The negotiable instruments include:  promissory note bill of lading Bank draft/ pay order/bankers cheque. Railway receipts Dock warrant Warehouse receipt Certificate of deposit Commercial paper Treasury bills Hundi

Q8. What Is Promissory Note (pn)?

It’s an instrument in writing which contains an unconditional undertaking signed by the maker to pay a certain sum of money to the order or the bearer of instrument. The Promissory Notes require being stamped ad per Indian Stamp Act.

Q9. How Many Types Of Bills Are Used In Banking Operations?

Following are the types of Bills used in Banking Operations: Inland bills and Foreign bills Time bills and Demand bills Trade bills and Accommodation bills Clean bills and Documentary bills.

Q10. How Many Types Of Promissory Notes Are There?

Types of Promissory Note: Demand Promissory Note Usance Promissory Note

Q11. What Is Usance Promissory Note?

The Promissory Note which is payable after a predefined definite period is called “Usance Promissory Note”.

Q12. Which Banking Services Can Be Used Through Information Technology (it)?

Following banking services can be achieved by using IT: Faster remittance services Home banking Tele- banking Cash management products Banking online

Q13. What Is Stale Cheque?

If the cheque is not presented for payment for a period of 6 months from the date of its issuance, it is then considered as Stale Cheque. The validity of the cheque can be reduced by the drawer, like valid for 3 months but the maximum validity of any cheque is 6 months.