I have already written a post on my RBI Grade B interview experience and this is a continuing series of the other RBI Interview Transcripts that I had collected in 2018. I have already published Part 1 and Part 2 with each part outlining 15 interview transcripts. This is Part 3 in this series of RBI Grade B Interview Transcripts. In this bunch I especially enjoyed Interview #42 so I annotated the text with a few extra comments from my side. Be sure to read that one extra carefully! Lets jump into Part 3 with candidates 31 through 45.

Profile: Unknown

Interview Date: 14.12.2018, Total Time: 15 minutes

-Difference between NBFC and bank?
-Does Basel apply to all banks?
-How RBI regulates banks
-Madam asked about today’s RBI board meeting… various issues of meeting… PCA framework…
-What are the issues where govt and RBI have different views?
-Why CRAR of Indian banks are higher? follow up question if we reduce CRAR by 1% then how much more bank can lend more (in amount)
-Difference between cooperative banks and commercial bank?

Other questions were related to my profile… they were asked by South Indian sir… at first instance it’s difficult to understand what he is asking. Chairman sir asked just 1 q… what is work life balance in respect of your job specification… (just before that he asked the members why we are getting this term work life balance again and again..who discovered this term 😄).

Profile: Unknown

Chairman
1. Describe yourself in terms of job you are doing/want to join.

Member 1 (on my right side, just next to me, comparatively more cordial)
1. How did you prepare for this exam ?
2. What are functions of RBI ?
3. You know about sterilization right ?
4. What are the advantages & disadvantages of it ?
(Interrupted me while I was speaking, as I didn’t interpret his question correctly & asked me when foreign capital comes in, what will happen to rupee? [I said it will appreciate])
6. He said okay, what will be its impact ?
7. He asked, are imports & exports our primary concerns in this case ?
8. Fed Reserve is considered too much powerful, almost next only to President, what is the reason for it ?
9. How can we print currency… what is the system in India ?
10. What is the amount of currency in circulation at the moment in India ?
11. Can we print as much as we want ?
12. Inquired about securities that can be used for backing against printing of currency.
13. You are doing CSE right ? (they just assumed it !!) [nodded yes]
14. What is your optional ?
15. Why do we need to regulate the banks ? What are the objectives behind regulation ?
16. Have you read/come across BR Act objectives ? [said no]
17. Statement : Gujarat & Maharashtra are considered as good examples for cooperative movement. What is the difference between cooperative & commercial bank ?
18. So, do you remember name of any successful cooperative movement ?
[I went blank for a few seconds… just as I started speaking “Sir, I do not…”…smilingly he asked You are from Gujarat right ?… I took the hint & gave answer “AMUL”]
Member 4 (the South Indian guy) spoke:  AMUL is correct but please speak it in full… I gave full form & they nodded
19. Do you remember any other successful movements ?
[was searching for it but could not come up with one]
20. Asked do you know Madhupura Bank (a cooperative bank) scam…said yes…then asked if I knew what changes were brought in after that ?
(I knew only about scam but could not answer second question)

Member 2 (lady, just to my left, she constantly checks her notes)
1. Told about demonetization, asked my opinion about the move.
2. Do you think it has achieved any results ?
3. Do you think digital transactions have increased due to it ?
4. Why physical currency is more used ?
5. Do you think at that time our digital systems were IT proof ?
(I asked this question again 2 times as I was confused between Income Tax & Information Technology, on 2nd time she understood & clarified it is not Income Tax)

Member 3 (on my right side, just next to chairman)
1. Taking on from my answer, about Payment & Settlement Systems Act amendment, he asked question about separate regulator for payment systems.
[I gave my opinion about payment regulator within RBI & then I tried to justify my opinion, he didn’t seem
pleased from his face & exclaimed what is the need for Competition Commission in this ?]

Member 4 (on my left side, just next to chairman, least audible person… listen carefully!!)
1. Asked for CAD of India in absolute terms & not as percentage of GDP.
(he also made 2-3 statements about CAD which I cannot recall here, but nodding head worked)
2. Asked amount of foreign exchange reserves of India.
3. Asked why India’s foreign exchange reserves are not considered as good in quality ?
4. China has largest reserves (asked amount), told about export led economy of China. Asked if China has really earned foreign reserves ?
5. He said that is also an issue (said something about Trump & China… inaudible), then asked if I knew about dispute between China & USA at WTO [I said no]
6. Asked if our foreign reserves can be considered as safe? Told me not to answer in yes/no only.

Back to Chairman
Nodded that he has no more questions when passed on to him. I was asked to leave then.

Disclaimer

● Given question wordings may differ from actual interview.
● Questions may not have been correctly arranged.
● Some questions may be missing/may have been wrongly described. ( short term memory loss :/ )

Profile: BBA Finance (took 5 years to complete due to health reasons), MA Development Studies

Duration: Hardly 12-15 minutes

(Chairman)
Two DS-related questions, one which I could not answer.

(M1)
Uniqueness of Scandinavian welfare model (mentioned in Bio data)
PCA
Effect of GST, demonetisation, PCA on MSMEs

(M2)
Societies are becoming more inward-looking. How does this reflect on economies around the world, and humanity in general? (this went on for 4-5 minutes at least)

(F1 – accidentally called her Sir twice)
What is yield?
Most important social and economic issues facing Kerala.
Reasons for lack of industrial development in Kerala (couldn’t stop myself from cracking a joke but thankfully everyone laughed)

(M4)
Muziris Bienalle
Importance of Muziris in Kerala history
Highlights of latest monetary policy meeting → discussion about SLR, CRR, benchmarking of loans

Interviews were running late. I was the 13th to go, and my interview started after 1:50PM. Don’t know if it was hurried because they were hungry or because I screwed it up. They’d also asked about derivatives, the kind of derivatives involved in 2008, etc. Sorry I can’t recall maybe it went on for more than 12 minutes. Time flies inside that room.

Profile: RBI Asst. working in DNBS (Department of Non- Banking Supervision) & also worked in State Bank of Mysore

1) What are the currency features ?
2) Why we need banks ? Importance of banks ?
3) IL&FS issue
4) Charter of Customer Rights
5) What is difference between Banks’ Balance Sheet and RBI Balance sheet ?
6) ECF
7) PCA
8) Leverage Ratio
9) News related to Anantapur (did not answer)
10) About Nidhi Companies (did not answer)
11) About vanishing companies/ untraceable companies? How many are there ?
12) Special Purpose Vehicle (not fully satisfied)
13) What is RBI going to change in respect of NBFCs ?
14) Where bank is defined ?
15) What SEBI changed rule w.r.t. Credit Rating Agencies ?
16) How NBFC sector raising funds ?
17) Why NBFC sector not able to get the funds from long term source ?
18) What is business cycle
19) Deficit financing

Profile: B.Engg with work experience of one year in vehicle mfg industry

Interview lasted 10-12 minutes, I was 5th one to go

Only question from chairman:
Describe yourself

Questions from other members:
Why RBI?
Agrarian crisis?
What should be done to resolve it?
Questions about my native.. Kalburgi district Karnataka
Freedom of expression… (M M Kalburgi issue)
NBFC working in vehicle manufacturing industry?
Govt vs RBI?
Import and Export from India amount wise (figures)
CAD?
Farm loan waiver and short term measure and long-term measure for agriculture sector?
Rupee depreciation happening why?
Financial literacy… financial inclusion..
Why financial Inclusion in India currently needed the most…?
What is banking?
Bank Balance Sheet?
News about IL&FS which came out in today’s news..

Profile: B. Com(Hons.), CFA Level 1, and working in NABARD.

Interview Date: 18/12/18

M1:
1) Sharpe Ratio
2) Yield to Maturity

M2:
1) Enterprise Value
2) What needs to be done to deepen long term bond market
3) Discounted cash flows
4) EBIT of companies
5) Principles of Value Assessment
6) NPV vs IRR
7) Infrastructure lending, compare public with private sector lending.

M3: (ma’am)
1) Hobbies, books names and authors
2) IL&FS crisis, why?
3) Raguram Rajan comment on excess reserves with RBI
4) TBS
5) Oxford economy, something happened in Hyderabad.
6) NABARD development challenges(as I am working in NABARD)

M4:
1) South Indian movies, compare Telugu and Tamil.
2) Merger of DCCB with StcB. Implications, long discussion
3) CD ratio.
4) PACS in Kerala.

Chairman:
1) You belong to SRCC college, tell me one textbook author of the college, which subject you like and why?

Profile: Unknown

Interview Date: 19/12/2018 (4th candidate to go)

Chairman :
What are the causes for under employment and unemployment?
Questions on Monetary Policy
Questions on my college history

Member 1 :
What are the causes for Agrarian distress?
Impacts of demonetisation on agriculture and MSME
Functions of RBI
Which dept you would like to join and why?

Lady Member :
Why do you want to change the field from metallurgy to RBI?
Recent news on FLY ASH and regulations on its disposal
How to address lack of skills in India’s youth?
Is GDP a good indicator of INCLUSIVE DEVELOPMENT? Compare China and India in this case?
Is India on the way to reap Demographic dividends?

Member 3 :
Reason for IDFC and Capital First merger?
Why Kotak Bank filed a case against RBI?
Questions related to Sterlite Copper controversy
What is NBFC? Type of NBFC which has last mile connectivity ?

25- 30 minutes of interview, Lady member was supportive, I got more of profile based questions

Profile: Unknown

Interview Location: Delhi. There were Five board members consisting of one Female member.

What is the speciality of your Hometown?
Why we shall not recruit you?
Why we shall recruit you?
Describe RBI Balance sheet?
Are you ready to go to North East for work assignment?
What will be the impact of Ind-AS on bank’s balance sheet?
GST, good or bad?
Who was the first Governor of RBI?
Are you an UPSC aspirant?
Explain Lender of Last Resort function of RBI?
Your views on farm Loan waiver?

Duration 25 minutes. I am probably the only candidate who was offered tea in the interview room with the members. The nature of the board was cordial and supportive. Most of the questions were asked by one of the board members who was an ex-RBI ED. Female member was not supportive to females. I am commerce Post Graduate and worked in audit, so many questions were from my education and work background.

Profile: B.Tech(IT), 8 years of experience in IT.

Interview Date: 17/12/2018

Chairman: Briefed that the interview will be more towards economics and banking.
1) Are you aware of Digital India initiative? What are the last mile challenges?
2) Where did G20 take place? Important decisions taken by US, China and Germany

M1: (My immediate right)
1) Enquired about the achievement in my previous organisation which I mentioned in the bio. Asked me to explain in detail on how it helped the business.
2) Role of RRB. Who supervises it?
3) Where does the bank get most of its capital from?
4) Types of accounts a bank handles? Enquired about CASA.

M2: (Immediate left of Chairman)
1) What’s the difference between debit card and credit card?
2) Who issues credit cards?
3) List the various payment service providers. Difference between Mastercard, Visa and Rupay.
4) Are you aware of shadow banking. Why it’s called so.
5) Difference between Banks n NBFC?

M3: (Female Member my immediate left)
1) Are you flexible with transfers. This is a pan India organisation so it is almost impossible that you’ll get your home town. Are you OK with it?
2) Are you aware about the happening related to leavers and stayers (Brexit)

M4: (Immediate right of Chairman)
1) How much turnover does TCS make?
2) Rupee depreciation is good or bad for TCS?
3) What is the impact of global trade tension between US and China in other countries? What is its impact on India.
4) Why is rupee depreciating ? How can we address it. What can RBI do about it?

Chairman: We are done you may leave.

Profile: 2017 Mech Engg, No work experience

Interview Date: 20/12/2018, Location: Chennai

Chairman:
1. You have scored very high marks in your school and college, what made you come to RBI? Was it a cautious decision?
2. How did you prepare for this RBI exam? Both written part and the interview part.
3. Where did you concentrate more?
4. Government and RBI are at loggerheads now. What capabilities you have which will help you handle such a stress when you reach higher posts?
5. There are many committees and meetings that will be happening in RBI. If you’re not a part of that committee, how will you help such a committee?
6. You are very good in mathematics. How do you think you can implement it here?

Member 1:
1. What is bitcoin? (I explained how it works)
2. But what is a bitcoin? Is it a currency or commodity? What is it?
3. Is blockchain mechanism being used in India?
4. Something happened in US yesterday. There is a fear it might affect the emerging economies. What is it?
5. How will it affect emerging economies?
6. Why was PCA in news today?
7. Is PCA necessary?
8. 5 functions of RBI
9. Foreign exchange reserve of RBI now

Member 2: (Ma’am)
1. Who is the Indian personality associated with Motorsports? (my hobby)
2. Where is he now?
3. They want to call him a fugitive offender. Why is that?
4. Is there a law to deal with such people?
5. Is he a wilful defaulter?
6. Who is a wilful defaulter?
7. 5 economic events that happened between 1947 and now.

Member 3:
1. Reasons for the agrarian crisis
2. A farmer sells his product for low prices. Still we buy at a higher price. Why is that?
3. What can be done about it?

Member 4:
1. Difference between headline and core inflation
2. Which inflation we target?
3. Why is demand in rural places low?
4. Which is good for the nation? Low rural inflation or high rural inflation?

Profile: IT Background

Interview Date: 21-Dec-2018, Location: Chennai

Chairman:
1. What are you working on currently?
2. What is your role? Where are you working? – Hyderabad
3. Ok, in Telangana. Tell me what is the agrarian crisis in Telangana?
Explained about drought and economic loss to farmers. CM KCR launched Rayatu Bandhu scheme to help farmers. Still he was expecting much more details. Then I told him, “Sir frankly speaking I’m originally from Bihar and don’t know much about Telangana agrarian crisis.”
He rebutted – it doesn’t matter. I think he was expecting much more detailed answer with data and exact causes.

Member 2:
1. You’re working in IT, why do you want to join RBI?
2. What are differentiated banks?
3. Are Payment Banks viable? There are already many prepaid instruments.
4. PMJDY provides banking to all, so why Payments Bank?

Member 3 (Ma’am):
1. She started with explaining huge exodus of people from Bihar and UP. But the states, they’re migrating to, have protested raising questions of ‘son of soil’. Are they justified on their demand, what is your view? One to one discussions went on this.
2. RBI and Govt are having many contentions recently. One of the issue was reserve transfer to use for bank capitalization and economic growth. What is your view on this?
3. Follow up question about components of reserves.
4. What is unrealized reserves etc.?

Member 4:
1. Does RBI control inflation? How?
2. What are other tools. You explained Reserve ratio, CRR, Policy Rates – these are quantitative tools. Do you know about qualitative tools? What are they?

Member 5:
1. Tell me the difference between Public Sector banks and Private banks?
2. He kept on asking next difference. “You belong from IT background, tell me based on that”. Private banks came with Technology while PSB were using manual process etc.
3. What are monetary policy and fiscal policy?

Profile: B. Tech CSE, RGUKT IIIT Basar, 2015 batch

Work Ex: Not working now, resigned SBI PO in 2015 – total 7 months 4 days

Interview Date: 21/12/2018, Location: Chennai

Previous Attempts: RBI Grade B 2017. Missed final merit list.

I was the 14th to go out of 16 people.

Chairman (C): So, are you working somewhere?
Me: No sir, but I was a SBI PO resigned now.

C: How many years did you work?
Me: Sir 7 months 4 days.

C: Before confirmation or after?
Me: Sir before confirmation, during probabtion only.
He pointed towards the gentleman to his left- signalled him to continue.

Member 1: What are the functions of RBI?
Me: Sir, RBI acts as the Central Bank of our country and undertakes MP, acts as a banker to govt, banker to the banks, issuer of currency, forex management, regulation and supervision of banks, supervision of NBF…. (he cut me short here.)

M1: Ok tell me which function interests you more? (LAST YEAR I WAS ASKED WHICH DEPT WOULD YOU LIKE TO JOIN)
Me: Sir, Regulation and Supervision of banks. (SIR DEPT. OF BANKING SUPERVISION)

M1: How does RBI supervise a bank? (SAME QUESTION WAS ASKED LAST YEAR TOO)
Me: Told

M1: What is SLR?
Me: Sir, it is a MP tool according to which banks need to maintain a portion of their NDTL in SLR securities, it is 19.5% at present (Here he was about to ask a suplementary question, sensing which I continued) Sir, but recently it has been decided to bring it down to 18%. (Here he smiled and said fine).

M1: Have you heard about PCA?
Me: Yes sir it is Prompt Corrective Action, according to which RBI places banks in PCA list based on 3 parameters when the threshold is breached, these are CRAR, Profitability or Assest Quality/NPA.

M1: What is bank consolidation and why its being done?
Me: consolidation-Told, Why part- said to meet Basel 3 norms and increased efficiency.

M1: How Basel 3? Suppose say bank 1 has X NPA, Y Asset – bank 2 has X NPA, Y asset how will they change if banks are consolidated?
Me: (In my mind I told myself – F*** man I always had this question in mind but never cared to check this or read about it) Without wasting any time I said: Sorry Sir, I always had this question in my mind I also read about it but I didn’t understand it, So I don’t now.

M1: Ok tell me, recently a Central Bank is in news, what did it do that is affecting the emerging economies?
Me: Sir it is Federal Reserve, the Central Bank of USA. It is news because it increased its repo rate by 25 basis points from 2.25% to 2.50%.

M1: What will be the effects.
Me: Sir, the investors especially the FPIs will pull out their money and there will be a large outflow of funds from the smaller economies back to USA as their Bond Yield will increase which will be attractive for the investors. This will lead to a stress in the local currency which will depreciate.

M1: Only FPIs? Not FDIs?
Me: No sir only FPIs because FDIs are long term investments in a company which are quite stable.

M1: But did you see what happened yesterday?
Me: Yes sir India was immune to it and the market was not affected.

M1: Why is it so?
Me: Sir, Indian markets nowadays are immune to these short term shocks, and Indian investors believe the low and falling prices of brent crude will be good for the economy. As oil forms a major part of our imports the less prices auger well for the economy.

M1: But did you see what happened today?
Me: Sorry sir, yesterday the market was stable. I’m not at all aware of todays happening (Of course I won’t be sitting in the conference hall and keep a tab on Sensex/Nifty!!).

Lady Member : Recently a bank took RBI to court, why?
Me: Madam it is Kotak Mahindra Bank, it took RBI to court due to its directions to the bank to reduce its promoters shareholding to 15% which it failed.

LM: Why did they fail what did they do?
Me: Madam, Uday Kotak issued Preferential shares and not normal shares. He still hold appx 30%.

LM: What is the diff?
Me: Madam, PS does not get voting rights like the normal equity shares.

LM: So, who do you support?
Me: Madam, Uday Kotak. (Here everyone was shocked – they let out a common gasp and looked at me)

LM: So you say RBI is wrong?
Me: No Madam, RBI is not wrong but I personally feel that investors and equity holders get connected with the promoters and invest due to them. For Ex: Ambani family is the face to Reliance and if we ask them to reduce their stake it may send a wrong signal to investors (I didn’t use shareholders here) similarly Uday Kotak is the face of KMB, so according to recommendations of some panel atleast 25% must be allowed to be held by him.

LM: But, the norms are since long KMB had 15 years, do you know why RBI recommended this 15% thing?
Me: Sorry Madam, I don’t know. (LINK 1 – remember this).

Member 2: Why are banks important?
Me: Sir, banks act as financial intermediaries b/w persons with surplus funds and people with deficit funds. They take deposits and give credit to the persons in need.

M2: Why are they important in the Indian context?
Me: Sir, In india most of the growth can be attributed to the lending by banks, as still the debt and equity market is very under developed. The Indian growth story is not investment led but BANK-LED (** mistake- LINK 2)

M2: If a bank fails what happens?
Me: Explained

M2: If a Corporate fails What happens?
Me: Explained

M2: So do you think banks need more regulation than Corporates, why?
Me: Yes sir because if a bank fails it will affect the entire economy but failure of an economy may just affect a specific sector.

M2 (LINK 1): So, can this be a reason why RBI is mooting for the 15% thing? As it does not want a bank to fail?
Me: Yes sir. (with a smile)

M2: Now you understood this thing?
Me: Yes sir.
(Supriyo: LINK 1 shows that the Panel has this weird way of bringing you to the correct answer even when you are wrong initially. So be very careful about what you say especially if its a contrarian view)

M2: What is PCR.
Me: Sir PCR is public credit registry and I went on to explain this…

M2 – He trolled me here – : No PCR also means another thing in Banking apart from credit registry.
Me: I said I don’t know sir.
(Supriyo: Some of you might have caught this, it wasn’t a troll- PCR also means Provisioning Coverage Ratio! Keep a good track of your abbreviations, the Panel can throw many Googlies! Don’t get bowled!! 😛 )

M2: Diff b/w GNPA and NNPA.
Me: Gross NPA explained, NNPA= GNPA- provisions.

M2: In this background now tell what is PCR.
ME: Sir, Provisions coverage ratio (Don’t know if this is right or wrong).
(Supriyo: See what I mean? The Panel has many tricks to extract the answer from you! There is a reason why those people taking your interview sit on company Boards & are top C-level executives!)

(Member 3: The South Indian sir, he was part of the panel last year also.)
M3: you have worked in SBI right, do you know Pratip Chaudhuri?
Me: I was about to say- Sir….. I don’t know, but before that
M3: He was the ex chairman of SBI he comes on debates on TV Shows and says CRR is a failure we should scrap it fully make it zero, what are your views?
Me: Sorry sir I didn’t read about it.

M3: If you have not read that debate then we can’t discuss further, Ok you said Bank-Led growth but it is Investment led growth. (<-LINK 2)
Me: Yes sir Investment led growth.

M3: Investment but Jobless growth (he laughed here as he said it)
Me: Yes sir.

M3: So what are the components of IL Growth?
Me: Sir, mostly consumption.

M3: What type:
Me: Sir, Govt, public, pvt.

M3: We have a formula.
Me: Yes sir, C+I+G something.
He completed the formula. CIG- some XYZ he said.

M3: Why it is a jobless growth?
Me: Sir, because the government failed to create any jobs and this is one of the reasons why BJP lost in the elections (I don’t know why I said this)

M3: He said Oh.. one of the reasons and he laughed again.

Chairman Sir: Ok you can leave.
Me: I thanked each of them separately and came out.

No questions from my bio-data. I feel the chairman/panel were bored during the fag end and wanted to push through the interview, I don’t even think they must have read the bio data form. The questions were of basic nature so I could answer most of them. Many of the 16 guys were asked basic things and mostly everyone performed well. I don’t know on what basis they will award marks. I was not at all nervous and did not stutter, answered confidently and said Sorry Sir/Madam to things I didn’t know with a smile. From me and my friends last year’s experiences I feel that knowledge and answering questions may not result in good marks and not answering may not lead to deduction of marks. So fingers crossed. Just enjoy the process.

Profile: B.Com (Hons.) + PGDBM ( HRM ) + PGD Human Rights + 3 years workex on Google Plus

Interview date: 21 December 2018, Chennai, 11:30AM

Chairman :
Gave a statement about conflict of Interest. Asked me to give examples & then little discussion about that.

M1 :
Why Google Plus was a failure.
Why Google was taken down in China.
Functions of RBI.
Which function I like and why?

M2 :
Why do you wanna get into banking industry.
Why should we hire you?
How human rights going to help banking or finance ?
3 important qualities a leader should have.

M3 : (lady)
Asked about interests – Traveling & Political affairs.
Linked Demo with political aspects and discussion there on.
Discussion on Cambridge Analytica

M4 :
Asked about recent monetary policy and recent changes in it.

Overall : Profile based and moderate interview. Though I clearly mentioned that I am Civil Services Aspirant in BD Form, not even a question on that.

Profile: RBI Staff candidate

Interview date: 26.12.18, Kolkata

1. Preamble of RBI
2. What is a business cycle
3. Why there is agrarian distress and solutions
4. What kind of complaints do you receive against NBFCs
5. Which complaints are dealt by NBFC ombudsman
6. Limited liability circular
7. Basel Norms
8. Counter Cyclical Buffer
9. What are the grounds of banking ombudsman complaints
10. What is section 17 of RBI Act. Why its important?
11. What is the exact line amended to preamble regarding monetary policy
12. Difference between financial stability and equilibrium
13. Difference between economic and financial aspect
14. Reason of rupee devaluation
15. What is the customer charter
16. What is BCSBI?
17. What is the difference between a govt organization and private organization
18. What is misselling. Give example

Profile: Mechanical Engineering from DCE, 2017. Currently working with Indian Oil Corporation Ltd

4 members present in panel. 15th to enter, was expecting a rapid fire but alas… 😛

Chairman (C): Are you working somewhere? Where? How much are you earning? How much is RBI Grade B Officer’s salary?
– Answered

C: When you know that you are earning more in the current job, then why do you want to join RBI? – Answered it as prepared. (Chairman laughed while looking around and said “See, honest answer, Good” :P)
Mai khush 😀

Member 1 (M1) : Have you heard of PCA? What are the parameters and framework?
– Described the parameters and thresholds. He interrupted when I started telling the numbers.

M1: What’s your opinion on keeping an ailing bank in PCA?
-Answered that by keeping the PCA on a higher side for a shorter period to ensure discipline in future lending, but suggested to slowly relax the norms by giving an example of RBI’s 9% CRAR and Basel’s 8% (1% equivalent to Rs 5.5 Lac crore for more lending and the resulting interest revenues) blah blah.

M1: Do you know about the Indian Agricultural distress? We have all the schemes to help farmers, then what’s the weak link here? He named some 10-11 schemes.
– Answered (I told policy making is being inclined to a top to bottom approach which leads to multiple leakages by the time the benefits of the scheme reaches the end user. The end user is not aware enough to reap the benefits, hence focus should be on a bottom to top approach where more focus should be given to awareness, educating farmers and creating infrastructure by involving the stakeholders at gram panchayat, block level etc. blah blah. This is a gradual process, hence it gets sidelined. Gave a generic answer)

M1: Is Loan waiver a good step?
-Answered by giving the points of credit indiscipline, as all the farmers are not under the banking umbrella hence waivers are not successfully reaching all the end users, wilful defaulters, hence a short term solution for some but definitely not a sustainable solution.

M1: Have you seen a company’s balance sheet?
-Answer: No sir, but I have seen RBI’s balance sheet 😛

M1: What is unique in a bank’s balance sheet?
Answer: (asked for a pause, thought) Sir the loans given are on the asset side of the balance sheet.

M1: Ok, what about the Corporate’s balance sheet?
-Answer: Sir I’m not sure about it, hence won’t take a guess. (I think he was heading towards the TBS, but I was dumb enough to catch the hint)

M1: What is Financial Inclusion?
-Answered

M2: What are Oil Bonds?
-Answered

M2: What is NOPEC? What is Donald Trump’s stance on it?
-Answered. Some discussion here and there, but I knew this in and out 😛 hence went well.

M2: What is Brent Crude? What is the last trading price? Whey it is sliding?
-Answered all of them.

M2: What is Shale oil? Technical aspects? Cost benefit analysis? Breakeven point, viability?
-Answered all of them.

M2: Is Qatar a part of OPEC? Why it announced the withdrawal? Will it affect the global economy? What was its share in crude oil production?
-Answered all of them.
Abhi tak maza aaraha tha 😛

M2: What is HFT, HTM and AFS?
Me: (wtf!! 😮 )
I smiled & told “I know the full form of HTM and because of this RBI penalized one of the banks recently”. One of the member interrupted and said he might not be aware of these terms

Madam: But sir he knows the full form 😛 (Sarcastically)
M1: There’s an issue with one of our banks and RBI, are you aware?
-Answer: Sir I have read this article on Kotak Bank and RBI’s court issue, but I couldn’t understand the article properly hence I’m not aware of it.

M1: But it was recent.
Me: Yes sir 😛

M3 (jo kabhi convince nahi hota hai): told a long story, then asked why India and Iraq signed the Rs agreement? Is it a win-win situation? Why?
-Answer: gave two points of USA imposing sanctions & slightly equitable trade balance between both the countries. Gave example of white oil, agricultural exports etc.

M3: Why we are not doing the same with China?
Me: (took a pause) gave the point of China’s trade surplus, their currency being a reserve currency and that’s all 😛

M3: (with a constipated face again told a long story :P) Why UCO bank is carrying all the transaction of India Iran Rs deal? Why not SBI?
Me: Sir, honestly I never came across this fact, will surely check this. (And of course a soft apology)

C: THANK YOU!
Thanked the Chairman, the other two members & gave a smile to the 4th member 🙂

To be Continued…

I will continue the RBI Interview Transcripts in Part 4 with the next set of 15 interviews.

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