RBI DEPR Interview Transcript: Nishchal Mittal

There were more than 8 members present in that room that day.

Chairman sir

1. (Reading out my Bio Data) Nishchal Mittal, Graduation from Rajasthan University, MA from DSE, pretty well scored in DSE, Impressive, pretty good paying job. Then, why RBI?

Ans: I explained that it provides me an opportunity to do research work being in a job. Explained that I would be able to apply theoretical knowledge of research work here.

Follow up: Why not PhD, then?

Ans: Explained : it is on the table. First narrowing down the interest areas then will go for it, if found opportunity.

Lady 1:

1. You work in Risk Management. Which model? ( I said Pension Risk) What is pension risk?

Ans: I explained what does the pension risk mean and its connection with defined benefit obligation plans. (It was related to my job)

2. Who invests the fund accumulated under pension plans?

Ans: I explained it with respect to my model. In India, as far as I know, in NPS, it is NPS funds and their managers.

Then she asked are you sure? I replied no ma’am, I am not sure.

3. What is defined benefit and defined contribution?

Ans: I explained that

3. Do you know anything about probability of default and other terms?

Ans: (These are the terms related to credit risk) I mentioned I have not worked in credit risk and I am not very much familiar with these terminology. However, I can try to explain the probability of default if you allow. She said yes and then I explained it. She looked convinced.

Male 1:

1. Your profile needs FRM? You haven’t done that then how are you doing this job?

Ans: I justified how that is not required for my work and explained that in training provided in the job, the required topics have been covered already.

(He looked convinced and asked whether I have plan to do this course – I said yes if I continue my career in this field)

2. What is a multiplier?

Ans: I explained the multiplier concept. “What is its formula” (asked by Chairman sir, in the middle). I gave its formula.

Lady 2

1. You are from Delhi School of Economics. Scored pretty well. You would have a good idea of macro. What is the Phillips curve?

Ans: I explained it.

2. If the curve is flatter, then what will be the consequences? Will monetary policy be less or more effective?

Ans: This was the trickiest question for me. I explained what would happen if it was flatter. And then said it will be easier to deal with the trade-off between inflation and unemployment as with expansionary Monetary policy, inflation increase will be relatively lower. So it will be more effective.

Then she said – you mean it will be less effective, right? (I didn’t know if she wanted to trick me or not) I was just about to say No ma;am; I said more effective. But, chairman sir interrupted and said more effective he has said.

3. What is the monetary policy framework? Which are some unconventional measures of monetary policy? Have the RBI used them? When and how?

Ans: Explained the Flexible inflation targeting framework. Listed some unconventional measures ( I forgot the name of operation twist but Lady 1 reminded me). Then, I explained in Covid 19 time period, these measures were used.

(She said “very good” gave a pretty good smile and nodded the head)

Male 2:

1. What are possible issues with AI in granting loans?

Ans: Listed down and explained that there can be bias in models which can be discriminatory. Explained how information deficiency can be the issue here.

He asked if I could list down more. I just said that this is something I can remember as of now.

Follow up: How your work can be benefited out of it?

Ans: I explained how AI is being integrated in my job.

2. What can be the use case of AI in depr?

Ans: Explained how it can be useful in research making at every stage of research making e.g., deciding the research question, methodology, data cleaning etc. and report writing.

3. Why does RBI say to implement external benchmark lending?

Ans: I explained how it is for improving the monetary policy transmission.

Follow up – What are some external benchmarks set by RBI? Which loans are not linked to EBLR ?

Ans: listed repo rate, government bond yields etc. I listed some types of loans e.g., MSME loans etc. which are not linked to EBLR.

Chairman sir:

1. What are the reasons and consequences of the decrease in savings rate?

Ans: Explained the possible reasons like change in demographics, stress in rural economy etc. and explained the consequences like managing general fiscal deficit around 6% will be difficult etc.

Then he asked how Fiscal Deficit will be affected?

I explained to him how the assumption of 6% of FD is decided by the FRBM committee and how the availability of funds will be affected.

2. Is Ayushman Bharat good or bad?

Ans: Though, I have not gone through its impact analysis in very deep sir, I think it is a good initiative to bring a large number of people under the insurance cover.

Then I was asked to leave.

The interview was very decent and I was very much convinced with my performance there given that I didn’t get time to prepare for it due to job, traveling and IES interview stuff. The panel was cordial. Members nodded their heads and helped me where I needed. I was expecting 60+ marks in the interview. Nonetheless, on that day, the panel looked in hurry (they took interviews of some in just 10 minutes as well). I was asked a lot about my job and DSE stuff. Confidence and knowledge is the key. Be just honest with them. If they are asking whether you are guessing, say yes if you are doing so.

All the best, guys!