Regional Rural Bank Interview Questions and Answers

SLR and CRR are two monetary policy tools used by the central bank to regulate the economy.

• SLR stands for Statutory Liquidity Ratio and CRR stands for Cash Reserve Ratio.

• SLR is the percentage of deposits that banks are required to maintain in the form of liquid assets such as cash, gold, or government securities.

• CRR is the percentage of deposits that banks are required to keep with the central bank in the form of reser...read more

Monetary policy refers to the actions taken by a central bank to manage the supply and demand of money and credit in an economy. RRB refers to Regional Rural Banks.

• Monetary policy involves setting interest rates, controlling inflation, and managing the money supply.

• RRBs are banks that operate in rural areas and are owned by the government, commercial banks, and local bodies.

• Changes in RRBs can impact the availability o...read more

Banks are required to follow Ind AS. Lease accounting under Ind AS is based on the concept of 'right to use'.

• Banks are considered as 'public interest entities' and are required to follow Ind AS from April 1, 2018.

• Lease accounting under Ind AS is based on the concept of 'right to use' rather than 'ownership'.

• Under Ind AS 116, lessees are required to recognize all leases on their balance sheet as a right-of-use asset and...read more

Stressed assets refer to assets that are under financial distress and are at risk of defaulting on their loans.

• Stressed assets are common in project financing where the project is not generating enough revenue to meet its debt obligations.

• These assets are usually sold at a discount to recover some of the outstanding debt.

• Stressed assets can be a result of various factors such as economic downturns, poor project managem...read more

The COVID-19 pandemic has severely impacted the Indian economy.

• The lockdowns and restrictions led to a significant decline in economic activity.

• Industries such as tourism, hospitality, and aviation were hit the hardest.

• The unemployment rate increased, and many small businesses shut down.

• The government implemented various measures such as stimulus packages and loan moratoriums to support the economy.

• The GDP contracted b...read more

The COVID-19 pandemic affected most sectors, but technology and e-commerce saw significant improvements.

• The pandemic caused a global economic downturn, affecting most sectors.

• Industries such as travel, hospitality, and retail were hit the hardest.

• However, technology and e-commerce saw significant improvements as people shifted to online platforms for work, shopping, and entertainment.

• Companies like Amazon, Zoom, and Ne...read more

Loan to SMEs under economy package is a government initiative to support small businesses during economic downturns.

• The loan is provided at a lower interest rate than the market rate.

• The loan amount is usually smaller than regular business loans.

• The eligibility criteria for SMEs to avail the loan is relaxed.

• The loan is aimed at helping SMEs sustain their business during tough economic times.

• The loan is a part of the go...read more