Bank Interview Questions

‘Bill Discount’ is a settlement of the bill, where your electricity bill or gas bill is sold to a bank for early payment at less than the face value and the bank will recover the full amount of the bill from you before bill due date. For example, electricity bill for XYZ is $1000; the electricity bill company will sell the bill to the bank for 10% to 20% discount to the face value. Here, the bank will buy the electricity bill for $900 whose face value is $1000, now the bank will recover, full amount of bill from the customer i.e $1000. If the customer fails to pay the bill, the bank will put interest on the outstanding bill and ask the customer for the payment.

In a market where the value of assets is falling, known as a bear market, traders might consider taking short positions, that is, borrowing assets they don’t own, selling them, and buying them back to return them at a later date when their price has fallen. Meanwhile, those working in asset management or M&A might consider, or advise clients to consider, snapping up undervalued assets.

Ujjivan Small Finance Bank Ltd, a wholly-owned subsidiary of Ujjivan Financial Services Ltd, has been given scheduled bank status by RBI.

Banks provide their clients with advice, assistance in arranging financing, and other services, such as access to trading on the markets, investment management, and risk reduction. Their main source of revenue is the fees they charge their clients for these services. Some banks have departments which invest or trade the bank’s own money to generate returns, though the extent to which they can do so has become more limited in recent years.