Nov 18, 2012

banking domain

Interview Questions on Banking Domain

1) What is Banking?

In general terms, the business activity of accepting and safeguarding money owned by other individuals and entities, and then lending out this money in order to earn a profit.

2) What is banking domain and explain briefly?

Banking domain is nothing but software division in a bank. Most of the banks are computerized now, the required s/w which is used will be under maintenance and very little enhancements. The members who work on this s/w can say that they are in banking domain.

3) What is BFSI?

Banking, Financial Services and Insurance (BFSI) is an industry term for companies that provide a range of such services.

4) What are the different types of Banks available in India?

Types of Banks in India:
------------------------------

Saving Banks,

Commercial Banks,

Industrial Banks / Development Banks,

Land Mortgage / Land Development Banks,

Central / Federal / National Bank,

Co-operative Banks,

Exchange Banks,

Rural Banks

Etc...

5) What are the different types of Accounts available in Banks?

Savings accounts:

They are for people who want to keep their money in a safe place and earn interest at the same time. We don’t need a lot of money to open a savings account.

Certificates of deposit:

They are savings deposits that require you to keep a certain amount of money in the bank for a fixed period of time. Usually banks charge a penalty if we withdraw our money early.

Individual retirement accounts: 


They are savings deposits that offer an excellent way to save for our later years.

Checking accounts or Current accounts:

They offer safety and convenience. We keep our money in the account and write a check when we want to pay a bill or transfer some of our money to someone else. Banks sometimes charge a fee for checking accounts, many banks also offer no-fee checking and checking accounts that earn interest if you agree to keep a certain amount of money—a minimum balance—in the account.

Money market deposit accounts:

They are similar to checking accounts that earn interest, except that they usually pay a higher rate of interest and require a higher minimum balance.

6) What are the different Types of Loans available in Indian Banks?

Types of Loans:

Housing loans,

Industrial Loans,

Personal Loans,

Vehicle Loans,

Education Loans,

Agriculture Loans,

Gold Loans,
Etc...

7) What or the important features in Internet Banking?


Important features in Internet Banking:
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Balance Inquiry,

Fund Transfers,

Mini statements,

Detailed reports,

Bill payments,

Shopping,

Credit card payments,

Loan Payments,

Utility payments etc...

8) What is Corporate Banking?

Corporate Internet Banking (CIB) helps Corporate and Institutional customers to execute complex banking transactions from their desktops.

Key facilities:
 

• Single window view Bank accounts, mapped to a single user ID. This includes loans, deposits and linked accounts like channel partner, vendor and dealer accounts. 

• Intra and Inter Bank fund transfer using NEFT and RTGS
 

• Bulk payments
 

• Online Tax payment
 

• Utility Bill payments
 

• Trade Services
 

• Cash Management Services which includes Cheque / DD printing, collections MIS, internet-based cheque writing, etc
 

• Requests for Fixed Deposit( FD) opening, cheque book and cheque stop payment

9) What is Mutual Fund and how it is related to Banking?

A mutual fund is a type of professionally-managed collective investment vehicle that pools money from many investors to purchase securities. While there is no legal definition of mutual fund, the term is most commonly applied only to those collective investment vehicles that are regulated, available to the general public and open-ended in nature.

Now a days large scale Banks are offering Mutual funds to their customers.

10) What should test in Banking Domain application?

We should test in Banking Domain application:
Banking Workflows.
Data Integrity issues.
Security and access issues.
Recovery testing.
All the above needs to be tested in the expected banking environment (Hardware, LAN, Op Sys, domain configurations, databases).

11) What are the multiple software testing techniques involved in banking application?

If we talk about testing banking applications, it requires an end to end testing methodology involving multiple software testing techniques to ensure:

• Total coverage of all banking work-flows and Business Requirements.

• Functional aspect of the application.

• Security aspect of the application.

• Data Integrity.

• Concurrency.

• User Experience.

12) What are the characteristics of Software application in banking domain?

The characteristics of a Banking application are as follows:
 

• Multi tier functionality to support thousands of concurrent user sessions

• Large scale Integration, typically a banking application integrates with numerous other applications such as Bill Pay utility and trading accounts

• Complex Business workflows

• Real Time and Batch processing

• High rate of Transactions per seconds

• Secure Transactions

• Robust Reporting section to keep track of day to day transactions

• Strong Auditing to troubleshoot customer issues

• Massive storage system

• Disaster Management.

13) What are the different types of Banking Software Applications available in the Industry?


Core Banking System (for Branches and Head office Automation)

ATM Banking (for computerizing Automated Teller Machines)

Internet Banking System (for online Banking Services)

Financial Management System (for internal financial services management)

Loan Management System (for handling loan approvals, sanctions, payments and recovery operations)  

Credit Card Management system (for handling credit card related operations)

Wealth management system

Investment Management System

Stock market management system

Etc…

14) What is Islamic Banking?


Islamic banking refers to a system of banking or banking activity that is consistent with the principles of the Shari'ah (Islamic rulings) and its practical application through the development of Islamic economics.

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