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BANK A bank is an institution which deals with money and credit. It accepts deposits from the public, makes the funds available to those who need them, and helps in the remittance of money from one place to another. In fact, a modem bank performs such a variety of functions that it is difficult to give a precise and general definition of it. It is because of this reason that different economists give different definitions of the bank. According to Crowther, a bank "collects money from those who have it to spare or who are saving it out of their incomes, and it lends this money to those who require it.” In the words of Kinley, “A bank is an establishment which makes to individuals such advances of money as may be required and safely made, and to which individuals entrust money when not required by them for use." According to John Paget, "Nobody can be a banker who does not (i) take deposit accounts, (h) take current accounts, (iii) issue and pay cheques, and (iv) collects cheques-crossed and uncrossed-for its customers," Prof. Sayers defines the terms bank and banking distinctly. He defines a bank as "an institution whose debts (bank deposits) are widely accepted in settlement of other people's debts to each other." Again, according to Sayers, "Ordinary banking business consists cash for bank deposits and bank deposits for cash; transferring bank deposits from one person or corporation to another; giving bank deposits in exchange for bills of exchange, government bonds, the secured promises of businessmen to repay and so forth". According to the Indian Companies Act, 1949, banking means "the accepting for the purpose of Indian Companies lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdraw able by cheque, draft or otherwise." In short, the term bank in the modern times refers to an institution having the following features: (i) It deals with money; it accepts deposits and advances loans. (ii) It also deals with credit; it has the ability to create credit, i.e., the ability to expand its liabilities as a multiple of its reserves. (iii) It is commercial institution; it aims at earning profit.
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(iv) It is a unique financial institution that creates demand deposits which serve as a medium of exchange and, as a result, the banks manage the payment system of the country.
TYPES OF BANKS : The banks today offer various kinds of services to their customers and are not limited to just lending and borrowing of money to individuals and organizations. Banks can be classified into various types on the basis of their functions, ownership, domicile, etc. The following are the various types of banks:
1. Commercial Banks: The banks, which perform all kinds of banking business and generally finance trade and commerce, are called commercial banks. Since their deposits are for a short period, these banks normally advance short-term loans to the businessmen and traders and avoid medium-term and long-term lending. However, recently, the commercial banks have also extended their areas of operation to medium-term and long-term finance. Majority of the commercial banks are in the public sector. However, there are certain private sector banks operating as joint stock companies. Hence, the commercial banks are also called joint stock banks. 2. Industrial Banks: Industrial banks, also known as investment banks, mainly meet the medium-term and long-term financial needs of the industries. Such long-term needs cannot be met by the commercial banks, which generally deal with short-term lending. The main functions of the industrial banks are: (a) They accept long-term deposits. (b) They grant long-term loans to the industrialists to enable them to purchase land, construct factory building, purchase heavy machinery, etc. (c) They help selling or even underwrite the debentures and shares of industrial firms, (d) They can also provide information regarding the general economic position of the economy. In India, industrial hanks, like Industrial Development Bank of India, https://www.facebook.com/groups/BANKPOANDCLERK
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Industrial Finance Corporation of India, Slate Finance Corporations, are playing significant role in the industrial development of the country. 3. Agricultural Banks: Agricultural credit needs are different from those of industry and trade. Industrial and commercial banks normally do not deal with agricultural finance. The agriculturists require: (a) short-term credit to buy seeds, fertilizers and other inputs, and (b) long-term credit to purchase land, to make permanent improvements on land, to purchase agricultural machinery and equipment, etc. In India, agricultural finance is generally provided by co-operative institutions. Agricultural co-operatives provide shortterm loans and Land Development Banks provide the long-term credit to the agriculturists. 4. Exchange Banks: Exchange banks deal in foreign exchange and specialise in financing foreign trade. They facilitate international payments through the sale, purchase of bills of exchange, and thus play an important role in promoting foreign trade. 5. Saving Banks: The main purpose of saving banks is to promote saving habits among the general public and mobilise their small savings. In India, postal saving banks do this job. They open accounts and issue postal cash certificates. 6. Central Bank: Central bank is the apex institution, which controls, regulates and supervises the monetary and credit system of the country. Important functions of the central bank are: (a) It has the monopoly of note issue; (b) It acts as the banker, agent and financial adviser to the state; (c) It is the custodian of member banks reserves; (d) It is the custodian of nation's reserves of international currency; https://www.facebook.com/groups/BANKPOANDCLERK
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(e) It serves as the lender of the last resort; (f) It functions as the bank of central clearance, settlement and transfer; and (g) It acts as the controller of credit. Besides these functions, India's central bank, i.e., the Reserve Bank of India, also performs many developmental functions to promote economic development in the country. 7. Classification on the Basis of Ownership: On the basis of ownership, banks can be classified into three categories: (a) Public Sector Banks: These arc owned and controlled by the government. In India, the nationalized banks and the regional rural banks come under these categories, (b) Private Sector Banks: These banks are owned by the private individuals or corporations and not by the government or co-operative societies, (c) Cooperative Banks: Cooperative banks are operated on the cooperative lines. In India, cooperative credit institutions are organised under the cooperative societies law and play an important role in meeting financial needs in the rural areas. 8. Classification on the Basis of Domicile: On the basis of domicile, the banks are divided into two categories: (a) Domestic Banks: These are registered and incorporated within the country, (b) Foreign Banks: These are foreign in origin and have their head offices in the country of origin. 9. Scheduled and Non-Scheduled Banks: https://www.facebook.com/groups/BANKPOANDCLERK
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In India, banks have been broadly classified into scheduled and non-scheduled banks. A Scheduled Bank is that which has been included in the Second Schedule of the Reserve Bank of India Act, 1934 and fulfills the three conditions (a) it has paid-up capital and reserves of at least Rs. 5 lakhs. It ensures the Reserve Bank that its operations are not detrimental to the interest of the depositors; (c) It is a corporation or a cooperative society and not a partnership or a single owner firm. The banks which are not included in the Second Schedule of the Reserve Bank of India Act are non-scheduled banks.
FUNCTIONS OF COMMERCIAL BANKS The commercial banks serve as the king pin of the financial system of the country. They render many valuable services. The important functions of the Commercial banks can be explained with the help of the following chart. PRIMARY FUNCTIONS The primary functions of the commercial banks include the following: A. Acceptance of Deposits 1. Time Deposits: These are deposits repayable after a certain fixed period. These deposits are not withdrawn able by cheque, draft or by other means. It includes the following. (a) Fixed Deposits: The deposits can be withdrawn only after expiry of certain period say 3 years, 5 years or 10 years. The banker allows a higher rate of interest depending upon the amount and period of time. Previously the rates of interest payable on fixed deposits were determined by Reserve Bank. Presently banks are permitted to offer interest as determined by each bank. However, banks are not permitted to offer different interest rates to different customers for deposits of same maturity period, except in the case of deposits of Rs. 15 lakhs and above. These days the banks accept deposits even for 15 days or one month etc. In times of urgent need for money, the bank allows premature closure of fixed deposits by paying interest at reduced rate. Depositors can also avail of loans against Fixed Deposits. The Fixed Deposit Receipt cannot be transferred to other persons. (b) Recurring Deposits: https://www.facebook.com/groups/BANKPOANDCLERK
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In recurring deposit, the customer opens an account and deposit a certain sum of money every month. After a certain period, say 1 year or 3 years or 5 years, the accumulated amount along with interest is paid to the customer. It is very helpful to the middle and poor sections of the people. The interest paid on such deposits is generally on cumulative basis. This deposit system is a useful mechanism for regular savers of money. (c) Cash Certificates: Cash certificates are issued to the public for a longer period of time. It attracts the people because its maturity value is in multiples of the sum invested. It is an attractive and high yielding investment for those who can keep the funds for a long time. It is a very useful account for meeting future financial requirements at the occasion of marriage, education of children etc. Cash certificates are generally issued at discount to face value. It means a cash certificate of Rs. 1, 00,000 payable after 10 years can be purchased now, say for Rs. 20,000. 2. Demand Deposits: These are the deposits which may be withdrawn by the depositor at any time without previous notice. It is withdraw able by cheque/draft. It includes the following: (a) Savings Deposits: The savings deposit promotes thrift among people. The savings deposits can only be held by individuals and non-profit institutions. The rate of interest paid on savings deposits is lower than that of time deposits. The savings account holder gets the advantage of liquidity (as in current a/c) and small income in the form of interests. But there are some restrictions on withdrawals. Corporate bodies and business firms are not allowed to open SB Accounts. Presently interest on SB Accounts is determined by RBI. It is 4.5 per cent per annum. Co-operative banks are allowed to pay an extra 0.5 per cent on its savings bank deposits. (b) Current Account Deposits: These accounts are maintained by the people who need to have a liquid balance. Current account offers high liquidity. No interest is paid on current deposits and there are no restrictions on withdrawals from the current account. These accounts are generally in the case of business firms, institutions and cooperative bodies. Nowadays, banks are designing and offering various investment schemes for deposit of money. These schemes vary from bank to bank. https://www.facebook.com/groups/BANKPOANDCLERK
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It may be stated that the banks are currently working out with different innovative schemes for deposits. Such deposit accounts offer better interest rate and at the same time withdraw able facility also. These schemes are mostly offered by foreign banks. In USA, Current Accounts are known as 'Checking Accounts' as a cheque is equivalent to check in America. B. Advancing of Loans The commercial banks provide loans and advances in various forms. They are given below: 1. Overdraft: This facility is given to holders of current accounts only. This is an arrangement with the bankers thereby the customer is allowed to draw money over and above the balance in his/her account. This facility of overdrawing his account is generally prearranged with the bank up to a certain limit. It is a short-term temporary fund facility from bank and the bank will charge interest over the amount overdrawn. This facility is generally available to business firms and companies. 2. Cash Credit: Cash credit is a form of working capital credit given to the business firms. Under this arrangement, the customer opens an account and the sanctioned amount is credited with that account. The customer can operate that account within the sanctioned limit as and when required. It is made against security of goods, personal security etc. On the basis of operation, the period of credit facility may be extended further. One advantage under this method is that bank charges interest only on the amount utilized and not on total amount sanctioned or credited to the account. Reserve Bank discourages this type of facility to business firms as it imposes an uncertainty on money supply. Hence this method of lending is slowly phased out from banks and replaced by loan accounts. Cash credit system is not in use in developed countries. 3. Discounting of Bills: Discounting of Bills may be another form of bank credit. The bank may purchase inland and foreign bills before these are due for payment by the drawer debtors, at discounted values, i.e., values a little lower than the face values. https://www.facebook.com/groups/BANKPOANDCLERK
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The Banker's discount is generally the interest on the full amount for the unexpired period of the bill. The banks reserve the right of debiting the accounts of the customers in case the bills are ultimately not paid, i.e., dishonored. The bill passes to the Banker after endorsement. Discounting of bills by banks provide immediate finance to sellers of goods. This helps them to carry on their business. Banks can discount only genuine commercial bills i.e., those drawn against sale of goods on Credit. Banks will not discount Accommodation Bills. 4. Loans and Advances: It includes both demand and term loans, direct loans and advances given to all type of customers mainly to businessmen and investors against personal security or goods of movable or immovable in nature. The loan amount is paid in cash or by credit to customer account which the customer can draw at any time. The interest is charged for the full amount whether he withdraws the money from his account or not. Short-term loans are granted to meet the working capital requirements where as long-term loans are granted to meet capital expenditure. Previously interest on loan was also regulated by RBI. Currently, banks can determine the rate themselves. Each bank is, however required to fix a minimum rate known as Prime Lending Rate (PLR). Classification of Loans and Advances Loans and advances given by bankers can be classified broadly into the following categories: (i) Advances which are given on the personal security of the debtor, and for which no tangible or collateral security is taken; this type of advance is given either when the amount of the advance is very small, or when the borrower is known to the Banker and the Banker has complete confidence in him (Clean Advance). (ii) Advances which are covered by tangible or collateral security. In this section of the study we are concerned with this type of advance and with different types of securities which a Banker may accept for such advances (Secured Advance). (iii) Advances which are given against the personal security of the debtor but for which the Banker also holds in addition the guarantee of one or more sureties. This type of advance is often given by Banker to persons who are not known to them but whose surety is known to the Banker. Bankers also often take the personal guarantee of the Directors of a company to whom they agree to advance a clean or unsecured loan. (iv) Loans are also given against the security of Fixed Deposit receipts. https://www.facebook.com/groups/BANKPOANDCLERK
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5. Housing Finance: Nowadays the commercial banks are competing among themselves in providing housing finance facilities to their customers. It is mainly to increase the housing facilities in the country. State Bank of India, Indian Bank, Canara Bank, Punjab National Bank, has formed housing subsidiaries to provide housing finance. The other banks are also providing housing finances to the public. Government of India also encourages banks to provide adequate housing finance. Borrowers of housing finance get tax exemption benefits on interest paid. Further housing finance up to Rs. 5 lakh is treated as priority sector advances for banks. The limit has been raised to Rs. 10 lakhs per borrower in cities. 6. Educational Loan Scheme: The Reserve Bank of India, from August, 1999 introduced a new Educational Loan Scheme for students of full time graduate/post-graduate professional courses in private professional colleges. Under the scheme all public sector banks have been directed to provide educational loan up to Rs. 15,000 for free seat and Rs. 50,000 for payment seat student at interest not more than 12 per cent per annum. This loan is on clean basis i.e., without calling for security. This loan is available only for students whose annual family income does not exceed Rs. 1, 00,000. The loan has to be repaid together with interest within five years from the date of completion of the course. Studies in respect of the following subjects/areas are covered under the scheme. (a) Medical and dental course. (b) Engineering course. (c) Chemical Technology. (d) Management courses like MBA. (e) Law studies. (f) Computer Science and Applications. This apart, some of the banks have other educational loan schemes against security etc., one can check up the details with the banks. 7. Loans against Shares/Securities: Commercial banks provide loans against the security of shares/debentures of reputed companies. Loans are usually given only up to 50% value (Market Value) of the shares https://www.facebook.com/groups/BANKPOANDCLERK
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subject to a maximum amount permissible as per RBI directives. Presently one can obtain a loan up to Rs.10 lakhs against the physical shares and up to Rs. 20 lakhs against dematerialized shares. 8. Loans against Savings Certificates: Banks are also providing loans up to certain value of savings certificates like National Savings Certificate, Fixed Deposit Receipt, Indira Vikas Patra, etc. The loan may be obtained for personal or business purposes. 9. Consumer Loans and Advances: One of the important areas for bank financing in recent years is towards purchase of consumer durables like TV sets, Washing Machines, Micro Oven, etc. Banks also provide liberal Car finance. These days banks are competing with one another to lend money for these purposes as default of payment is not high in these areas as the borrowers are usually salaried persons having regular income? Further, bank's interest rate is also higher. Hence, banks improve their profit through such profitable loans. 10. Securitization of Loans: Banks are recently trying to securities a part of their part of loan portfolio and sell it to another investor. Under this method, banks will convert their business loans into a security or a document and sell it to some Investment or Fund Manager for cash to enhance their liquidity position. It is a process of transferring credit risk from the banker to the buyer of securitized loans. It involves a cost to the banker but it helps the bank to ensure proper recovery of loan. Accordingly, securitization is the process of changing an illiquid asset into a liquid asset. 11. Others: Commercial banks provide other types of advances such as venture capital advances, jewel loans, etc. 1. Effective October 18, 1994 banks were free to determine their own prime lending rates (PLRs) for credit limit over Rs. 2 lakh. Data relate to public sector banks. 2. The stipulation of minimum maturity period of term deposits was reduced from 30 days to 15 days, effective April 29, 1998. Data relate to public sector banks.
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3. The change in the Bank Rate was made effective from the close of business of respective dates of change except April 29, 1998. 4. Effective April 29, 1998. C. Credit Creation Credit creation is one of the primary functions of commercial banks. When a bank sanctions a loan to the customer, it does not give cash to him. But, a deposit account is opened in his name and the amount is credited to his account. He can withdraw the money whenever he needs. Thus, whenever a bank sanctions a loan it creates a deposit. In this way the bank increases the money supply of the economy. Such functions are known as credit creation. Secondary Functions The secondary functions of the banks consist of agency functions and general utility functions. A. Agency Functions Agency functions include the following: (i) Collection of cheques, dividends, and interests: As an agent the bank collects cheques, drafts, promissory notes, interest, dividends etc., on behalf of its customers and credit the amounts to their accounts. Customers may furnish their bank details to corporate where investment is made in shares, debentures, etc. As and when dividend, interest, is due, the companies directly send the warrants/cheques to the bank for credit to customer account. (ii) Payment of rent, insurance premiums: The bank makes the payments such as rent, insurance premiums, subscriptions, on standing instructions until further notice. Till the order is revoked, the bank will continue to make such payments regularly by debiting the customer's account. (iii) Dealing in foreign exchange: As an agent the commercial banks purchase and sell foreign exchange as well for customers as per RBI Exchange Control Regulations. (iv) Purchase and sale of securities: https://www.facebook.com/groups/BANKPOANDCLERK
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Commercial banks undertake the purchase and sale of different securities such as shares, debentures, bonds etc., on behalf of their customers. They run a separate 'Portfolio Management Scheme' for their big customers. (v) Act as trustee, executor, attorney, etc: The banks act as executors of Will, trustees and attorneys. It is safe to appoint a bank as a trustee than to appoint an individual. Acting as attorneys of their customers, they receive payments and sign transfer deeds of the properties of their customers. (vi) Act as correspondent: The commercial banks act as a correspondent of their customers. Small banks even get travel tickets, book vehicles; receive letters etc. on behalf of the customers. (vii) Preparations of Income-Tax returns: They prepare income-tax returns and provide advices on tax matters for their customers. For this purpose, they employ tax experts and make their services, available to their customers. B. General Utility Services The General utility services include the following: (i) Safety Locker facility: Safekeeping of important documents, valuables like jewels are one of the oldest services provided by commercial banks. 'Lockers' are small receptacles which are fitted in steel racks and kept inside strong rooms known as vaults. These lockers are available on half-yearly or annual rental basis. The bank merely provides lockers and the key but the valuables are always under the control of its users. Any customer cannot have access to vault. Only customers of safety lockers after entering into a register his name account number and time can enter into the vault. Because the vault is holding important valuables of customers in lockers, it is also known as 'Strong Room'. (ii) Payment Mechanism or Money Transfer: Transfer of funds is one of the important functions performed by commercial banks. Cheques and credit cards are two important payment mechanisms through banks. Despite an increase in financial transactions, banks are managing the transfer of funds process very efficiently. https://www.facebook.com/groups/BANKPOANDCLERK
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Cheques are also cleared through the banking system. Correspondent banking is another method of transferring funds over long distance, usually from one country to another. Banks, these days employ computers to speed up money transfer and to reduce cost of transferring funds. Electronic Transfer of funds is also known as 'Chequeless banking' where funds are transferred through computers and sophisticated electronic system by using code words. They offer Mail Transfer, Telegraphic Transfer (TT) facility also. (iii) Travelers' cheques: Travelers Cheques are used by domestic travelers as well as by international travelers. However the use of traveler's cheques is more common by international travelers because of their safety and convenience. These can be also termed as a modified form of traveler's letter of credit. A bank issuing travelers cheques usually have banking arrangement with many of the foreign banks abroad, known as correspondent banks. The purchaser of traveler's cheques can encase the cheques from all the overseas banks with whom the issuing bank has such an arrangement. Thus traveler's cheques are not drawn on specific bank abroad. The cheques are issued in foreign currency and in convenient denominations of ten, twenty, fifty, one hundred dollar, etc. The signature of the buyer/traveler is written on the face of the cheques at the time of their purchase. The cheques also provide blank space for the signature of the traveler to be signed at the time of encashment of each cheque. A traveler has to sign in the blank space at the time of drawing money and in the presence of the paying banker. The paying banker will pay the money only when the signature of the traveler tallies with the signature already available on the cheque. A traveler should never sign the cheque except in the presence of paying banker and only when the traveler desires to encash the cheque. Otherwise it may be misused. The cheques are also accepted by hotels, restaurants, shops, airlines companies for respectable persons. Encashment of a traveler cheque abroad is tantamount to a foreign exchange transaction as it involves conversion of domestic currency into a foreign currency. When a traveller cheque is lost or stolen, the buyer of the cheques has to give a notice to the issuing bank so that stop order can be issued against such lost/stolen cheques to the banks where they are permitted to be encased. https://www.facebook.com/groups/BANKPOANDCLERK
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It is also difficult to the finder of the cheque to draw cash against it since the encasher has to sign the cheque in the presence of the paying banker. Unused travellers cheques can be surrendered to the issuing bank and balance of cash obtained. The issuing bank levies certain commission depending upon the number and value of travellers cheques issued. (iv) Circular Notes or Circular Letters of Credit: Under Circular Letters of Credit, the customer/traveller negotiates the drafts with any of the various branches to which they are addressed. Thus the traveller can obtain funds from many of the branches of banks instead only from a particular branch. Circular Letters of Credit are therefore a more useful method for obtaining funds while travelling to many countries. It may be noted that travellers letter of credit are usually paid for in advance. In other words, the traveller first makes payments to the issuing bank before obtaining the Circular Notes. (v) Issue "Travellers Cheques": Banks issue travellers cheques to help carry money safely while travelling within India or abroad. Thus, the customers can travel without fear, theft or loss of money. (vi) Letters of Credit: Letter of Credit is a payment document provided by the buyer's banker in favour of seller. This document guarantees payment to the seller upon production of document mentioned in the Letter of Credit evidencing dispatch of goods to the buyer. The Letter of Credit is an assurance of payment upon fulfilling conditions mentioned in the Letter of Credit. The letter of credit is an important method of payment in international trade. There are primarily 4 parties to a letter of credit. The buyer or importer, the bank which issues the letter of credit, known as opening bank, the person in whose favour the letter of credit is issued or opened (The seller or exporter, known as 'Beneficiary of Letter of Credit'), and the credit receiving/advising bank. The Letter of Credit is generally advised/sent through the seller's bank, known as Negotiating or Advising bank. This is done because the conditions mentioned in the Letter of Credit are, in the first instance; have to be verified by the Negotiating Bank. It is mostly used in international trade. (vii) Acting as Referees: https://www.facebook.com/groups/BANKPOANDCLERK
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The banks act as referees and supply information about the business transactions and financial standing of their customers on enquiries made by third parties. This is done on the acceptance of the customers and help to increase the business activity in general. (viii) Provides Trade Information: The commercial banks collect information on business and financial conditions etc., and make it available to their customers to help plan their strategy. Trade information service is very useful for those customers going for cross-border business. It will help traders to know the exact business conditions, payment rules and buyers' financial status in other countries. (ix) ATM facilities: The banks today have ATM facilities. Under this system the customers can withdraw their money easily and quickly and 24 hours a day. This is also known as 'Any Time Money'. Customers under this system can withdraw funds i.e., currency notes with a help of certain magnetic card issued by the bank and similarly deposit cash/cheque for credit to account. (x) Credit cards: Banks have introduced credit card system. Credit cards enable a customer to purchase goods and services from certain specified retail and service establishments up to a limit without making immediate payment. In other words, purchases can be made on credit basis on the strength of the credit card. The establishments like Hotels, Shops, Airline Companies, Railways etc., which sell the goods or services on credit forward a monthly or fortnightly statements to the bank. The amount is paid to these establishments by the bank. The bank subsequently collects the dues from the customers by debit to their accounts. Usually, the bank receives certain service charges for every credit card issued. Visa Card, BOB card are some examples of credit cards. (xi) Gift Cheques: The commercial banks offer Gift cheque facilities to the general public. These cheques received a wider acceptance in India. Under this system by paying equivalent amount one can buy gift cheque for presentation on occasions like Wedding, Birthday. (xii) Accepting Bills:
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On behalf of their customers, the banks accept bills drawn by third parties on its customers. This resembles the letter of credit. While banks accept bills, they provide a better security for payment to seller of goods or drawer of bills. (xiii) Merchant Banking: The commercial banks provide valuable services through their merchant banking divisions or through their subsidiaries to the traders. This is the function of underwriting of securities. They underwrite a portion of the Public issue of shares, Debentures and Bonds of Joint Stock Companies. Such underwriting ensures the expected minimum subscription and also convey to the investing public about the quality of the company issuing the securities. Currently, this type of services can be provided only by separate subsidiaries, known as Merchant Bankers as per SEBI regulations. (xiv) Advice on Financial Matters: The commercial banks also give advice to their customers on financial matters particularly on investment decisions such as expansion, diversification, new ventures, rising of funds etc. (xv) Factoring Service: Today the commercial banks provide factoring service to their customers. It is very much helpful in the development of trade and industry as immediate cash flow and administration of debtors' accounts are taken care of by factors. This service is again provided only by a separate subsidiary as per RBI regulations. Balance sheet is a statement of assets and liabilities on a given date. In India, banks have to publish their balance sheets according to the preformed i.e., 'Form A' given in the III schedule of the Banking Regulation Act, 1949. The study of the balance sheet along with its profit and loss account reveals its financial soundness. A customer has to carefully study these statements to choose his banks. The combined balance sheet of all banks in the country reveals certain economic trends. A specimen of a Bank's Balance Sheet is given at the end of this chapter. CHEQUE is an important document that an individual, companies, governments and many others use to transact their business. By definition, cheque can be termed as a negotiable document to transfer money either in physical form or to effect inter account transfer.
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Unless or otherwise stated, a cheque is a signed unconditional order addressing the bank to credit it by the issuer. The issuer of the cheque will have an account with the bank to which it is connected. The account can be either savings type or a current account. A cheque transaction is one of the safest ways of conducting the business because it leaves an entry against the cheque honoured by the bank in the banking transactions conducted by you which can be traced back in case of necessity. There are various types of cheques and various ways of issuing a cheque.
Different types of cheques based on methods of issuing Open cheque or bearer cheque: The issuer of the cheque would just fill the name of the person to whom the cheque is issued, writes the amount and attaches his signature and nothing else. This type of issuing a cheque is also called bearer type cheque also known as open cheque or uncrossed cheque. The cheque is negotiable from the date of issue to three months. The issued cheque turns stale after the completion of three months. It has to be revalidated before presenting to the bank. A crossed cheque or an account payee cheque: It is written in the same as that of bearer cheque but issuer specifically specifies it as account payee on the left hand top corner or simply crosses it twice with two parallel lines on the right hand top corner. The bearer of the cheque presenting it to the bank should have an account in the branch to which the written sum is deposited. It is safest type of cheques. A self cheque: A self cheque is written by the account holder as pay self to receive the money in the physical form from the branch where he holds his account. Pay yourself cheque: The account holder issues this type of crossed cheque to the bank asking the bank deduct money from his account into bank’s own account for the purpose buying banking products like drafts, pay orders, fixed deposit receipts or for
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depositing money into other accounts held by him like recurring deposits and loan accounts. Post dated cheque (PDC): A PDC is a form of a crossed or account payee bearer cheque but post dated to meet the said financial obligation at a future date. Various types of cheques based on their functionality Local Cheque: A local cheque is a type of cheque which is valid in the given city and a given branch in which the issuer has an account and to which it is connected. The producer of the cheque in whose name it is issued can directly go to the designated bank and receive the money in the physical form. If a given city’s local cheque is presented elsewhere shall attract some fixed banking charges. Although these type of cheques are still prevalent, especially with nationalised banks, it is slowly slated to be removed with at par cheque type. At par cheque: With the computerisation and networking of bank branches with its headquarters, a variation to the local cheque has become common place in the name of at par cheque. At par cheque is a cheque which is accepted at par at all its branches across the country. Unlike local cheque it can be present across the country without attracting additional banking charges. Banker’s cheque: It is a kind of cheque issued by the bank itself connected to its own funds. It is a kind of assurance given by the issuer to the client to alley your fears. The personal account connected cheques may bounce for want of funds in his account. To avoid such hurdles, sometimes, the receiver seeks banker’s cheque. Travelers’ cheques: They are a kind of an open type bearer cheque issued by the bank which can be used by the user for withdrawal of money while touring. It is equivalent to carrying cash but in a safe form without fear of losing it.
Gift cheque: This is another banking instrument introduced for gifting money to the loved ones instead of hard cash. Cheques per se have been around since the inception of banking system. The cheque transactions are one of the safest ways of conducting business. Although cheque is going to be still the mainstay of banking transactions, it leaves a good amount of paper usage. With net banking becoming popular and made secure, more and more people are looking forward to transacting their business using net banking. ATMs are slowly replacing the self cheques for withdrawal of money. Post dated cheques are getting replaced by periodic electronic clearing instructions . https://www.facebook.com/groups/BANKPOANDCLERK
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RESERVE BANK OF INDIA 01. 02. 03. 04. 05. 06. 07. 08. 09.
10. 11. 12. 13. 14.
15. 16.
17. 18.
Central bank is a bank which acts as a banker to the government; has monopoly of note issue and controls the entire banking system RBI is the central bank in India RBI was established by an act of Parliament in 1934 The initial share capital for RBI was Rs. 5 crores RBI was nationalized under (transfer of public ownership) act 1948 Its affairs are regulated by central board of directors It has four regional centres at Mumbai, Kolkatta, Chennai and Delhi The central office of the bank is at Mumbai RBI is note issuing authority; banker, agent and financial adviser to the government; custodian of cash reserves of banks; custodian of nation‟s reserves of foreign exchange; lender of the last resort; controller of credit etc. Currency notes other than one rupee notes are issued by RBI RBI has credit control – regulation of cash reserves of commercial banks, regulating the flow of credit, qualitative control and open market operations Handles all government transactions It is a banker‘s bank It maintains the exchange rate for the Indian rupee; hold the country‟s reserves in foreign currencies and administration of the exchange management regulations Scheduled commercial banks They are included in the second schedule to the RBI act, 1934 They can avail facilities from RBI – accommodation in the form of refinance and loans and advances; remittance facility at concessive rates as also grant of authorized dealer‟s license to handle foreign exchange business. Have paid up capital and reserves – aggregate value of not less than Rs. 5 lakhs. It can be a state cooperative bank or company registered under the companies act
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19.
20.
Scheduled commercial banks are – State Bank of India and associates, nationalized banks, private sector banks, regional rural banks, urban cooperative banks, state cooperative banks Scheduled Commercial Banks to maintain CRR up to 3 percent of their demand and time liabilities which can go upto a maximum of 15 percent Public sector banks
21. 22. 23. 24.
State Bank of India and associate banks Nationalized banks – 20 Banks were nationalized on 19.07.1969 - fourteen banks Nationalised banks are: Central Bank of India, Bank of India, Bank of Baroda, Allahabad Bank, Union Bank of India, United Commercial Bank, Indian Overseas Bank, Indian Bank, Canara Bank, Syndicate Bank, Punjab National Bank, United Bank of India, Dena Bank, Bank of Maharashtra, Andhra Bank, Corporation Bank, Oriental Bank of Commerce, Punjab and Sind Bank and Vijaya Bank. (19) and Industrial Development Bank of India = 20 Development banks
25. 26. 27. 28. 29. 30. 31. 32.
Industrial Finance Corporation of India is a development bank Its operations are project finance, financial services and corporate advisory services Industrial Investment Bank of India was set up in 1971 for rehabilitation of sick industrial companies. Reconstituted as Industrial Reconstruction Bank of India in 1985 under the IRBI act, 1984 IRBI was incorporated in March, 1997 as Industrial Investment Bank of India Limited under the companies act, 1956 SIDBI was set up in 1990 under an act of parliament (SIDBI) act 1989 as a wholly owned subsidiary of IDBI It is the principal financial institution for promoting and financing development of industry in the small scale sector 14 banks were nationalized on 19th July 1969
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New Private sector banks 33. 34. 35. 36. 37. 38. 39.
New private sector banks were formed as per RBI guidelines 1993 They were registered under companies act 1956 They were included in second schedule to the RBI act, 1934 The minimum paid up capital of a new bank shall be Rs. 100 crores Priority sector lending norms should be adopted by these banks The banks are governed by the provisions of the RBI act, 1934, the Banking regulation act, 1949 and other relevant statutes. They are not allowed to set up a subsidiary or mutual fund for at least three years after their establishment Regional Rural banks
40. 41.
42. 43. 44. 45. 46. 47.
Regional Rural banks were established on 2.10.1975 To develop rural economy by providing credit and other facilities for the purpose of development of agriculture, trade, commerce, industry and other productive activities in rural areas, particularly to the small and marginal farmers, agricultural laborers, artisans and small entrepreneurs They are scheduled commercial banks Included in second schedule to RBI act, 1934 The gross NPAs of regional rural banks should not be more than 10 percent. The banks should comply with the IRDA regulations for acting as a corporate agent The authorized capital of a regional rural bank is Rs. 5 crore and issued/paid up capital minimum of Rs. 25 lakhs and maximum of Rs. 100 lakhs The prescribed minimum level of share holding should be 51 percent for sponsor institutions Local Area banks
48.
Local area banks were established on 24.08.1996
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49. 50. 51. 52. 53. 54. 55. 56. 57. 58. 59.
They were set up in the private sector to cater to credit needs of the local people and to provide efficient and competitive financial intermediation services in their area of operation They are required to observe the priority sector lending target of 40 percent of net bank credit, as applicable to other domestic banks, out of which 25 percent shall be given to weaker sections They were registered as public limited companies as per Companies act, 1956. They got licence as per Banking regulation act 1949 Included in the second schedule to RBI act, 1934 They have the minimum paid up capital of Rs. 5 crore Promoters‘ contribution to be Rs 2 crores. They can be promoted by individuals, corporate entities, trusts and societies The area of operation of local area bank shall be a maximum of three geographically contiguous districts. To comply with the provisions of the Banking Regulation act, 1949, RBI act, 1934 and other statutes They are subject to prudential norms, accounting policies and other policies laid down by RBI Non Banking Finance Companies
60. 61. 62. 63. 64. 65. 66.
NBFCs consist of eight categories – each one of them conducting a particular business activity Equipment leasing company undertakes equipment leasing or the financing of such activity Hire purchase finance company is engaged in hire purchase transaction or the financing of such transactions Loan company provides finance by making loans or advances or otherwise for any activity other than its own. The main business of any investment company is the acquisition of securities and trading in such securities to earn a profit Mutual Benefit Financial Company are the companies which are notified by the Central Government under section 620 A of the companies act 1956 Miscellaneous non banking company – the principal business of such company is managing, conducting or supervising as a
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67. 68.
69. 70. 71. 72. 73. 74. 75. 76.
promoter, foreman or agent of any transaction or arrangement by which the company enters into an agreement Housing finance company – acquisition of construction of houses including the acquisition or development of plots of land Residuary non banking company – receives deposits under any scheme or arrangement by whatever name called in one lump sum or in installments by way of contributions or subscriptions or by sale of units or certificates or other instruments or in any manner. Effective 4.3.2003, NBFCs are not allowed to offer more than 11 percent per annum interest on public deposit No official agency guarantees or undertakes the repayment of deposits or interest NBFC deposits are uninsured and not backed by security They are not allowed to offer more than 2 percent brokerage They are not allowed to offer gifts or incentives All depositors must be issued proper receipts for deposits NBFCs having track record of less than 2 years is not eligible to accept public deposits NBFCs seeking public deposit should be a profit making company Life Insurance corporation of India
77. 78. 79. 80.
81.
82. 83.
LIC was established in 1956 as wholly owned corporation of the Government of India LIC came into being from 1.9.1956 To spread life insurance across the country, particularly in the rural areas and to the socially and economically backward classes. Besides insurance business, LIC in pursuance of Government of India guidelines invests a major portion of its funds in central and state government securities and other approved securities including special deposits with Government of India. Extends assistance to develop infrastructure facilities like housing, rural electrification, water supply and sewerage and provides financial assistance to the corporate sector by way of term loans, underwriting off and direct subscription to shares and debentures. It also provides resource support to financial institutions through subscription to their shares/bonds and by way of term loans. UTI - the largest mutual fund organization in India was set up in 1964 by an act of parliament.
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84.
85.
86.
87.
Established to fulfill the objectives of mobilizing of retail savings, investing them in the capital market and passing on the benefits accrued from the acquisition, holding, management and disposal of securities to the small investors. General Insurance Corporation of India was formed and registered on January, 1973 under the insurance act 1938 in accordance with the provisions of the General Insurance Business (Nationalization) act, 1972 The New India Assurance Company Limited; The United India Insurance Company Limited, The Oriental Insurance Company Limited and National Insurance Company Limited are government owned insurance companies doing general insurance business Need based insurance companies to meet the diverse and emerging needs of various segments of society and provides financial assistance to industrial projects by way of term loans, short term loans and direct subscription to shares/debentures of new and existing industrial enterprise. NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
88. 89.
90. 91.
92.
NABARD was established in 1982 under an act of parliament It is the apex development bank for promotion and development bank for promotion and development of agriculture, small scale industries, cottage and village industries, handicrafts and other rural crafts and other allied economic activities in rural areas It serves as an apex financing agency for the institutions providing investment and production credit for promoting the various developmental activities in rural areas Takes measures towards institution building for improving absorptive capacity of the credit delivery system, including monitoring, formulation of rehabilitation schemes, restricting of credit institutions, training of personnel etc. Coordinates the rural financing activities of all institutions engaged in developmental work at the field level and maintains liaison with Government of India, state governments, RBI and other national level institutions concerned with policy formulation
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EXPORT AND IMPORT BANK OF INDIA 93.
Export and Import Bank of India - EXIM bank was established in 1982 94. Public sector financial institution created by an act of Parliament vide - the Export and Import Bank of India act 1981. 95. Principal financial institution for – financing, facilitating and promoting India‘s foreign trade 96. They provide Indian exporters with investment loans, export product development loans, loans for export marketing, pre shipment credit, suppliers credit for exports or projects and advisory services. 97. Equity finance available for acquiring of setting up companies abroad for manufacturing, marketing, trading etc. 98. It offers buyers credit and lines of credit to foreign governments and banks 99. It has facilities to provide advance information and business advisory services to Indian exporters in respect of multilaterally funded projects overseas. 100. It offers advisory and information services to exporters and sponsors
01. 02. 03. 04. 05. 06.
EXIM bank operates various lending programs for promotion of exports of engineering and capital goods and related services from India EXIM - Direct financial assistance to exporters of plant, equipment, machinery and related services in the form of medium term credit EXIM -Overseas investment finance to Indian promoters of overseas joint ventures to support their equity investments. EXIM - Overseas buyers‘ credit to foreign importers for import of Indian capital goods and related services National Housing bank was established on 9.7.1988 Vide National housing bank act, 1987 to function as a principal agency to promote housing finance institutions and to provide financial and other support to such institutions.
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07. 08.
09. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24.
NHB – issues directions to housing finance institutions to ensure their growth on sound lines Make loans and advances and render any other form of financial assistance to scheduled banks and housing finance institutions or to any authority established by or under any central, state or provincial act and engaged in slum improvement Formulate schemes for the purpose of mobilization of resources and extension of credit for housing. Banks can accept both demand and time deposits from the public Interest payable on savings bank accounts is not regulated by Reserve Bank of India RBI is the sole authority to issue and manage currency in India Accounts are allowed to be operated by cheques in respect of both savings bank accounts and current accounts Normally no interest is paid on current deposit accounts The usual deposit schemes of the banks are current accounts, savings bank accounts and term deposit accounts Fixed deposits and recurring deposits are repayable after an agreed period Financial inclusion means provision of financial services namely, payments, remittances, savings, loans and insurance at affordable cost to persons not yet given the same Sale of insurance policy to a depositor is known as cross selling by banks When a bank returns a cheque unpaid, it is called as dishonor of the cheque Mortgage is a security on immovable property for a deposit received by a bank Accounts in which shares of various companies are traded in electronic form is called as demat accounts NABARD has sought an emergency fund of Rs. 1000 crore from banks to tackle acute liquidity crisis, which is coming in the way to give loans to micro borrowers Distribution of insurance products and insurance policies by the banks as corporate agencies is known as bankassurance The term L denote ―Liquidity‖ in term ―LAF‖ as referred every now and then in relation to monetary policy of RBI – liquidity
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25. 26. 27. 28.
29. 30. 31.
32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. 46. 47. 48. 49.
The full form of FINO – a term frequently used in newspapers is called as – Financial Information Network and Operation Limited The rate of inflation increases when the purchasing power of money decreases Interest on savings bank account is now calculated by banks on daily product basis A centralized data base with online connectivity to branches through internet as well as ATM network which has been adopted by almost all major banks of the country is known as core banking Treasury bills, commercial paper, certificate of deposit, shares and bonds are called as money market instruments Repurchase agreement is not money market instrument With a view to facilitate payment of balance in the deposit account to the person named by the depositor without any hassles in the event of death of the account holder, the following facility has been introduced for bank accounts in our country – nomination Banks in our country normally publicize that additional interest rate is allowed on retail domestic term deposits of – senior citizens CRR – cash reserve ratio SLR – statutory reserve ratio EXIM bank – export and import bank of India NABARD – National Bank for Agriculture and Rural development SIDBI – small industries development bank of India EDP – entrepreneurship development programme SMERA – SME rating agency of India Limited NBFC – Non banking finance companies NEFT – National electronic funds transfer RTGS – real time gross settlement Narrow banking is a system of banking under which a bank places its funds only in 100 percent risk free assets with maturity matching for its liabilities. NPA – non performing assets CAR means capital adequacy ratio KYC means know your customer guidelines IPO – Initial public offer QIB – qualified institutional buyers SEBI – securities and exchange board of India
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50. 51. 52. 53. 54. 55. 56. 57. 58. 59. 60.
MICR – magnetic ink character recognition NSE – national stock exchange BCSBI – Banking codes and standards board of India FEDAI – Foreign exchange dealers association of India ALCO – asset liability committee ALM – asset liability management FCNR – foreign currency non resident deposit accounts CDRS – Corporate debt restructuring IDRBT – Institute for development and research of banking technology YTM – yield to maturity IRDA – Insurance Regulatory and Development Authority of India
POINTS 01. 02. 03. 04. 05. 06. 07. 08. 09.
The bank branches which can undertake foreign exchange business directly are known as approved dealers in foreign exchange Insurance cover for bank deposits in the country is provided by DICGC Deposit Insurance and Credit Guarantee Corporation of India Limited is called as DICGC The financial literacy includes the following namely; how to invest the funds; how to use the limited funds carefully; how to minimize the risks and how to reinvest the money earned The loans of very small amounts given to low income group is called as – Micro credit When a banker talks about CDR, CDR is meant – Corporate Debt Restructuring. ALM is called as Asset Liability Management Cash Reserve Ratio and Statutory Liquidity Ratio are terms most closely related to the following industries/markets – Banking industry CRR and SLR are not related to capital market, commodities market, money market and mutual fund industry
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10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24.
25. 26. 27. 28.
The letter ―L‖ available in the term LAF commonly used in financial/economic news is called as– Liquidity LAF means liquidity adjustment facility The banking ombudsman resolves the complaints of the customers in regard to services provided by the banks Public sector bank, foreign bank, private sector bank and regional rural bank are classified as commercial banks Urban cooperative bank is not a commercial bank SEBI means Securities and Exchange Board of India. Money laundering means – the process of conversion of money obtained illegally to appear to have originated from legitimate sources Monetary policy as an arm of the economic policy is administered by – Reserve Bank of India The following is not a primary function of a bank – Facilitating import of goods The following are the functions of banks – accepting deposits; granting loans; collecting cheques; issuing drafts; selling gold/silver coins The following represent the correct meaning of Repo rate – Rate for borrowing rupees by banks from RBI The reserves which can act as a liquidity buffer for commercial banks during crisis times are CRR and SLR Savings bank accounts are opened by individuals for savings purposes A customer drawing a cheque on a bank has the right to stop payment of the cheque before it is paid The following are the functions of a commercial bank namely; providing project finance; settlement of payments on behalf of the customers; issuing credit and debit cards to the customers and providing services such as locker facilities and remittances Commercial banks do not undertake the following functions: deciding policy rates like CRR, SLR and repo rates Reserve Bank of India undertakes the following rates: CRR; SLR and repo rates The conversion of money which is illegally obtained is called as – money laundering For purchase of white goods, the following loan is granted by the banks – consumer durables loan
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29. 30.
31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. 46. 47. 48. 49.
A cheque which has completed the stipulated validity period of the cheque is called as – stale cheque (The validity period is 3 months as at present) Ganesh has been nominated in the savings bank account of Vijaya and Ganesh requests the bank authorities to allow him to operate Vijaya‘s account as she is found to be unwell. What will the bank do? – As nomination will come into effect only after the death of the depositor, the bank will not permit The following is a measure taken by RBI in order to control inflation in the country – raising of Repo and Reverse Repo rates. What do you understand by the term called as mortgage ?– Making the security of immovable property available as a cover for a home loan availed by the borrower The following constitutes the largest percentage of retail loans in the country – Home loans The credit risk to the bank is high from which of these cards – Credit cards Depreciation of an asset does not occur on account of the following namely; fire in the unit; theft; labour trouble; wear and tear; The following are the sources of finance for any commercial bank – capital, borrowings from RBI, deposits and cash reserves with RBI Call money borrowings – is not the source of finance for any commercial bank The rate at which the domestic currency can be converted into foreign currency and vice versa is known as the – exchange rate ARCIL – is the asset reconstruction company IRDA – Insurance Regulatory Development Authority BCSBI – Banking Codes and Standards Board of India CIBIL – Credit Information Bureau of India Limited Exchange rate is the term used in the field of economics The non performing assets of any bank are called as – sub standard assets, doubtful assets and loss assets The performing assets of any bank are called as – standard assets The crossing on a cheque can be cancelled by the drawer of the cheque under his full signature Banks can accept both demand and time deposits from the public Interest payable on savings bank is not regulated by RBI The usual deposit accounts of the banks are – current accounts, savings accounts and term deposit accounts
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50.
01. 02. 03. 04. 05. 06. 07. 08. 09. 10. 11. 12. 13. 14. 15. 16.
The fixed deposits, reinvestment deposits and recurring deposits are repayable after an agreed period. POINTS Accounts are allowed to be operated by cheques in respect of current and savings accounts Interest is not paid in current accounts Mortgage is a security on immovable property for loan given by the bank Financial inclusion means provision of – financial services namely; payments, remittances, savings, loans and insurance at affordable cost to persons not yet given the same When a bank returns a cheque unpaid, it is called as – dishonor of the cheque Demat accounts are accounts in which the shares of various companies are traded in electronic form NEFT means – National Electronic Funds Transfer No upper limit has been prescribed for RTGS RTGS means – Real Time Gross Settlement Distribution of insurance products and insurance policies by banks as corporate agents is known as – bankassurance Interest on savings bank account is now calculated by the banks on daily product basis Government of India is the largest shareholder (in percentage shareholding) of a nationalized bank Banks in the country normally publicise that additional interest rate is allowed in retail domestic term deposits held by– senior citizens A centralized database with online connectivity to branches, internet as well as ATM network which has been adopted by almost all major banks of the country is known as – core banking Commercial paper is not considered as the money market instrument With a view to facilitate payment of balance in the deposit account to the person named by the depositor without any hassles in the event of death of the account holder, the following facility was introduced for bank accounts in the country – Nomination
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17. 18. 19. 20. 21.
22. 23. 24.
25. 26.
27. 28. 29. 30.
ATM cards are issued to a person who maintains any of the following accounts namely – savings bank accounts and current accounts ATM is a computer which is dedicated to perform certain specific jobs only ATM is a user friendly machine and the customer does not require any training for using it ATM is totally menu driven which displays instructions to the customer step by step for operating the same A working croup on cheque truncation and E-cheques was constituted by RBI under the chairmanship of Dr. R.B. Barman and major recommendations of group include – the physical cheque will be truncated within the presenting bank; settlement will be generated on the basis of current MICR code line data and electronic images will be used for payment processing RTGS benefits the customer and the bank RTGS means a payment system in which – both processing and final settlement of funds transfer instructions can take place continuously RBI in regard to RTGS has decided that – RTGS would be accessible to all retail customers and there would be no floor ceiling for routing the transactions through RTGS and settlement of transactions. State Bank of India is considered to be the first bank to launch a mutual fund In commercial paper the following parties can invest – individuals, banking companies and corporate bodies registered or incorporated in the county and unincorporated bodies, Non Resident Indians and foreign Institutional Investors. The commercial paper may be issued in multiples of Rs. 5 lakhs subject to the minimum size of an issue to a single investor being – Rs. 5 lakhs Commercial paper may be issued for period ranging from seven days to one year Commercial paper is essentially – unsecured money market instrument Social control was imposed on commercial banks effective from – 1st February, 1969
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31. 32. 33. 34. 35. 36.
37. 38. 39. 40. 41. 42. 43.
44. 45.
Fourteen major Indian banks having deposits of more than Rs. 50 crores were nationalized on 19.07.1969 With effect from 19.07.1969, the fourteen major Indian banks were nationalized by the Government of India under – the banking companies (acquisition and transfer of undertakings) act 1970 Effective from 15.04.1980, six banks with demand and time liabilities exceeding Rs. 200 crores were nationalized In the wake of Narasimhan committee recommendations the banks which entered into the capital markets – State Bank of India, Oriental Bank of Commerce and Bank of India. In the wake of Narasimhan Committee recommendations, the financial sector reforms were implemented by the government of India Financial sector reforms aim towards introduction of capital adequacy norms, based upon capital to risk weighted asset ratios; prudential norms relating to classification of assets, income recognition and provisioning; setting up of a strong supervisory and surveillance mechanism for the banking system and financial sector through the Board for financial supervision in RBI According to Hilton Young Commission, the RBI act, 1934 was enacted The Banking Commission was appointed by the Government of India in January, 1969 under the chairmanship of R.G. Saraiya In order to study the functioning of Public Sector banks, James Raj Committee was appointed Kamath working group was appointed to study the problems arising out of the adoption of multi agency in agricultural banking The banking laws committee was headed by – P.V. Rajamannar The National Credit Council which symbolized the role of credit planning in development was set up in the year – 1968 During the year-1966, RBI set up the All India Rural Credit Review Committee in order to – reassess the developments that have taken place in the field of rural credit since 1954, that is subsequent to submission of the report of the All India Rural Credit Survey Commission Talwar committee submitted its report in the year 1977 Talwar committee was appointed by Government of India to – submit recommendations on customer service on banks
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46. 47. 48. 49. 50.
In order to review the existing system of inspection of banks by RBI, Pendarkar working group was appointed Under the chairmanship of H.N. Sinor, the working group to examine various issues concerning the deposit rates including floating rate of interest on fixed deposits was constituted by RBI RBI had constituted the working group on flow of credit to SSI sector under the chairmainship of A.S. Ganguly The Joint stock banking system started in the late 18 th century/early 19th century The Bank of Bengal got its charter in 1809 POINTS
01. 02. 03. 04. 05. 06. 07. 08. 09. 10. 11. 12. 13. 14.
15. 16. 17.
The first bank in India was set up on modern lines in 1770 by an agency house Bombay stock exchange was made functional as early as 1870 The first life insurance company in the country – Oriental Life Insurance company Oriental Life insurance company was established in 1818 First General (non life) Insurance company was set up in 1850 There were 566 private commercial banks in the country with 4151 branches in 1951 There are 32 foreign banks in the country Foreign banks have around 310 branches all over the country The Unit trust of India came into existence in 1964 Export Risk Insurance Corporation was set up in July 1957 Export Risk Insurance Corporation was converted as ECGC in January 1964 ECGC – Export Credit Guarantee Corporation The deposit insurance corporation was set up in 1962 The fourteen banks which were nationalized on 19.7.1969 were – Central Bank of India; Bank of Maharashtra; Dena Bank; Punjab National Bank; Syndicate Bank; Canara Bank; Indian Bank; Indian Overseas Bank; Bank of Baroda; Union Bank; Allahabad Bank; United Bank of India; United Commercial Bank and Bank of India Six banks were nationalized during the second stage on 15.4.1980 Regional Rural Banks were set up in 1975 NABARD was established in 1982
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18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41.
NABARD – National Bank for Agriculture and Rural Development Securities and Exchange Board of India was established in 1988 Licensing for new private sector banks was issued in 1993 Indian financial system is composed of three components – financial assets, financial markets and financial intermediaries or institutions Financial assets are classified into primary or direct securities and secondary or indirect securities Financial markets can be classified into money market and capital market Financial intermediaries can be classified into organized and unorganized Organized financial intermediaries can be classified into banking institutions and non banking financial institutions Primary securities are those securities which represent financial claims against real sectors Real sectors represent bills, bonds, shares, book debts etc. National savings certificates, infrastructure bonds, Indira Vikas Patras, Krishi Vikas Patra etc. are examples of financial assets Money market is the center of dealings mainly of short term character in monetary assets The capital market deals in long term funds, both debt and equity Financial instruments of the capital market are classified into the following two categories namely; government or gilt edged securities and corporate securities The main financial instruments of corporate sector are – shares, debentures, public deposits and loan from institutions Banking commission was established in 1972 Capital market is a market which deals in long term funds Regional Rural Banks fall within supervisory purview of RBI IRDA is the regulatory authority for all insurance companies in the country including LIC of India IRDA has its headquarters at Hyderabad Mutual funds fall within the supervisory purview of SEBI Export and Import Bank of India does not fall within the purview of development banks State Bank of India was formulated as per SBI act 1955 ICICI Bank Limited is the first Universal Bank established in the country
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42. 43. 44. 45. 46. 47. 48. 49. 50.
01. 02. 03. 04. 05. 06. 07. 08. 09. 10. 11. 12.
New Bank of India merged with Punjab National Bank The central monetary authority of the country is Reserve Bank of India Scheduled commercial banks are banks which have been included in the second schedule of RBI act, 1934; registered under companies act and got licence as per Banking Regulations act 1949 When the banks entertain in dealing with insurance business, it is called as bankassurance Universal banking is the roof under which various banking products are available When the repayment period of any loan is upto 36 months, the loan is called as short term loan When the repayment period is between 37 to 84 months, such loans are called as medium term loans When the repayment period is more than 84 months, they are called as long term loans In the case of Regional Rural Banks, the contribution structure between Government of India, State Government and Sponsoring banks are in the ratio of 50:15:35 POINTS Laxmi Commercial Bank merged with Canara Bank CAMEL denotes – capital adequacy, asset quality, management, efficiency and liquidity Banks are subject to operational risk, credit risk, market risk, liquidity risk When the ATM machine installed in the bank is out of order, it is called as operational risk When the computers are not functioning, it is called as operational risk When the loans are not repaid in time, it is called as credit risk When the banks products fail to survive in the market, it is called market risk When the banks are not able to pay the amount to the depositors, it is called as liquidity risk IFSC code denotes the branch code of any bank IFSC code consists of eleven digits Tissue culture denotes propagation of cells Aqua culture denotes shrimp farming and fish production
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13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31.
32.
Horticulture means fruit production Sericulture means silk production Pisciculture means fish farming Apiculture means honeybee rearing Sylvi culture means cultivation of fodder crops Moriculture means cultivation of mulberry Olericulture means vegetable cultivation Increase in agriculture production is called as green revolution When the activity relates to milk production, it is called as white revolution When the activity relates to meat production, it is called as red revolution When the activity relates to cocoa production, it is called as brown revolution When the activity relates to rubber production, it is called as black revolution When the activity relates to fish farming, it is called as blue revolution When the activity relates to cultivation of oil seeds and pulse production, it is called as yellow revolution When the activity relates to flower production, it is called as rainbow revolution Marginal farmer is one who has irrigated lands less than 1.25 acres or non irrigated lands less than 2.5 acres Small farmer is one who has irrigated lands less than 2.50 acres or non irrigated lands less than 5.00 acres Agricultural laborer is one whose 50 percent of income is from agriculture The old private sector banks in the country are: City Union Bank, Tamilnadu Mercantile Bank, SBI commercial Bank, Catholic Syrian Bank, Dhanalakshmi Bank, Federal Bank, Jammu and Kashmir Bank, Karnataka Bank, Karur Vysya Bank, Lakshmi Vilas Bank, Nainital Bank, Ratnakar Bank, South Indian Bank Limited, ING Vysya Bank Limited The new private sector banks in the country are: Axis Bank, Development credit bank, HDFC Bank, ICICI Bank, Indus Ind Bank, Kotak Mahindra Bank, Yes Bank
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33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. 46.
47. 48.
The subsidiaries of State Bank of India are; State Bank of Patiala; State Bank of Hyderabad; State Bank of Travancore; State Bank of Bikaneer and Jaipur and State Bank of Mysore. Oriental Bank of Commerce has taken over Global Trust Bank For charging interest on loans/advances from July 2010, RBI introduced the following system namely; Base lending rate system in the place of Benchmark Prime Lending Rate system Money laundering refers to conversion of money which is legally obtained The account in which trading of shares in their electronic form is called as DEMAT account Reserve Bank of India issues all the currency notes except one rupee note RBI does not transact the business of the following state government namely – Jammu and Kashmir The first Indian bank to open a branch outside India in London in 1946 is Bank of India NRI deposits are called as hot money Euro Bond is an instrument issued in a country other than the country of the currency of the bond National Income Estimates in India are prepared by Central Statistics Commission Full convertibility of a rupee means determination of rate of exchange between rupee and foreign currencies freely by the market forces of demand and supply RBI has prescribed that all scheduled commercial banks should maintain their SLRs in dated securities notified by RBI; treasury bills of Government of India and State Development Loans The following category of banks were mooted with a view to providing an Institutional mechanism for promoting rural and semi urban savings as well as for the provision of credit for viable economic activities in local areas – Local area banks in the private sector LAB means local area banks The first Private bank in India to receive an in principle approval from Reserve Bank of India was Housing Development Finance Corporation Limited
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49. 50.
The actual return of an investor is reduced sometimes as the prices of the commodities go up all of a sudden. In financial sector, this type of phenomenon is known as – market risk Rashtriya Swastiya Bima Yojana started rolling from 1.4.2008 POINTS
01. 02. 03. 04. 05. 06.
07. 08.
09. 10. 11. 12.
Banking regulation act, 1949 does not at all apply to – primary agricultural credit societies and cooperative land mortgage banks As per the provisions of section 12 of the Banking Regulations act, 1949, the minimum ratio between the authorized, subscribed and paid up capital of a banking company should be 4:2:1 Under the provisions of section 35(b) (ii) of the Banking Regulation Act, 1949, inspection of branches of Indian banks situated abroad is to be carried out by – RBI The first public sector bank to issue capital to public is – Oriental Bank of Commerce The New Private Sector Banks have been authorized to be set up under the new liberalization policy and the minimum paid up capital should be – Rs. 200 Crore The Banking Companies act, 1949 was enacted to consolidate and amend the law relating to banking companies with effect from 1.3.1966 and the name of the act has been changed to – The banking regulation act The management of SEBI consists of – chairman and five members The following is the reason for the success of mutual fund – mutual fund scheme offers to every investor security, steady growth, regular income and easy liquidity; a small investor gets the professional expertise of the fund managers of the mutual fund and it carries tax breaks and this benefit is passed on to the investor The individual investor can claim tax exemption for both principal amount and income from these units under – Sec 80 E of the information technology act The main objectives of special electronic fund transfer scheme – SEFT – it is safe; secure and same day electronic interbank transfer of funds across the country Treasury bill is – negotiable security RBI functions as the agent of the central government issues – treasury bills
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13. 14. 15.
16.
17. 18.
19.
20. 21. 22. 23. 24.
The treasury bills are issued at a – discount NABARD extends refinance to – State Land Development Banks, State Cooperative Banks; Regional Rural Banks and Commercial Banks and other financial institutions approved by RBI Automatic refinance scheme is available to the persons financed under – the scheme of setting up of agriclinic and agribusiness centers; rural non farm sector (investment credit) upto Rs. 15 lakhs and composite loan scheme The objectives and functions of IDBI include – to provide technical and administrative assistance for promotion or expansion of industry; to undertake market and investment research and survey technical and economic studies in connection with development of industry and to act as lender of last resort and to finance projects that are in conformity with national priorities For availing refinance from IDBI – the industrial unit should not be SSI; promoter‘s contribution should be 25% of project cost and debt equity ratio should not be more than 2:1 Central Cooperative Banks – serve as the connecting links between State Cooperative Banks and Primary Credit Societies; finance the primary credit societies which balance the excess and deficiency in their resources but do little commercial banking and are closer to the primary societies than an apex bank The primary function of a central cooperative bank is – to mobilize the resources in the district for financing its members; to channelize the flow of funds from the state cooperative banks and to mobilize deposit from state government Diversification refers to entering into attractive opportunities. Diversification means the activities outside the existing businesses of the firm The various types of diversification generally observed by the business – concentric diversification, horizontal diversification and conglomerate diversification The world over most of the supervisory authorities have adopted the following as the basis of assessment of capital adequacy – risk assets ratio system The committee on Banking and Regulations and Supervisory practices which released the agreed frame work on international convergence of capital measures and capital standards in July, 1988 is popularly known as – Basle committee
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25. 26. 27.
28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38.
39.
40.
Basle committee adopted weighted risk assets approach which assigns weights to – on balance sheet exposure of a bank and off balance sheet exposure of a bank CBS – Core Banking Solution The benefits of Core Banking Solutions – benefit of not carrying the cash from one place to another; depositing money anywhere in the country where the bank is present and instant updating of the accounts Network can be defined as – a system of communication between various computers used by different users. Retail banking refers to provision of the basic services of a bank to the individuals The following are categorized under retail banking – personal loans to individuals; vehicle loans; home loans and credit cards The reduction in the SLR by RBI – will augment the resources of scheduled commercial banks Under sections 20, 21 and 21A of the RBI act, 1934, RBI manages the public debt and issues new loans on behalf of the central and state governments Social control of banks was introduced during the year – 1967 The following form the part of general insurance – fire, burglary, theft, marine, household, vehicles etc FDMA means – Frequency Division Multiple Access Full form of ERNET – Educational and Research Network Application of VSAT in bank is – inter branch reconciliation; funds and securities movement; payment system and monitoring and MIS reporting The various facilities offered by banks through tele banking – balance enquiry; enquiry about collection or specific credit/debit transactions; transfer of funds and request for statement of accounts etc. Home banking refers to – how banking is an extended version of tele banking; in home banking the customer is able to access his bank account from his home for availing a variety of services which is made available and home banking is availed through the customer‘s personal computer attached to a telephone line and modem. For availing home banking facility, a client should have the following – personal computer, modem and telephone line
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41.
42.
43. 44. 45. 46. 47. 48. 49.
50.
The functions of IRDA – it has the power to specify the code of conduct for surveyors and loss assessors; it has power to regulate investment of funds by insurance companies; it has power to supervise the functioning of tariff advisory committee and it has the duty to regulate, promote and ensure orderly growth of the insurance and re-insurance business in the country The compelling reasons for bank nationalization are – concentration of which and economic power in the hands of industrialists and businessmen; branch expansion was confined to urban areas and rural areas were being neglected; sectors like agriculture, small scale industries and the other deserving sectors were outside the purview of bank lending operations and various malpractices indulged in by banks under private ownership Regional Rural Banks are allowed to pay half per cent additional interest on savings accounts and time deposits less than three years The regulatory authority for Regional Rural Banks is RBI and NABARD Bank rate means the standard rate at which the RBI is prepared to buy or rediscount bills of exchange and other commercial paper eligible for purchase under the RBI act 1934 When RBI desires to restrict expansion of credit it raises the bank rate In periods of depression, when the Reserve Bank of India desires to encourage the banking system to create more credit, it reduces the bank rate Sub section 12 AB of system 17 of the RBI act, 1934 defines the term: Repo Repo is an instrument for borrowing the funds by selling securities of the central government or a state government or of such securities of a local authority as may be specified in this behalf by the central government or foreign securities, with an agreement to repurchase the said securities on a mutually agreed future date at an agreed price which includes interest for the funds borrowed Sub section 12AB of section 17 of the RBI act 1934 defines the term – Reverse repo rate POINTS
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01. 02. 03. 04. 05. 06. 07. 08. 09. 10. 11.
12. 13. 14. 15. 16. 17. 18.
Financial instruments of the capital market are classified into the following two categories namely; government or gilt edged securities and corporate securities. The financial instruments of corporate sector are: shares, debentures, public deposits and loans from institutions. Financial intermediaries are those institutions which collect savings from those who save and make it available to the investors for their use. The financial intermediaries or institutions are mainly classified into two categories namely; institutional or organized; non institutional or unorganized. Institutional or organized are mainly divided into two parts namely; banking institutions and non banking financial intermediaries. The financial regulatory authorities in India are: Reserve Bank of India, Securities and Exchange Board of India and Insurance Regulatory and Development authority. SEBI – securities and exchange board of India IRDA – Insurance Regulatory and Development Authority IRDA was established in 1990 IRDA has its headquarters at Hyderabad The financial institutions perform a number of functions: promoting savings, mobilizing savings and allocate it among different users and facilitating capital formation, production and economic development The financial markets in the country can be divided into money markets and capital markets Money market refers to that market wherein short term monetary assets are bought and sold Financial institutions can be either in the organized sector or unorganized sector RBI, Commercial Banks, Cooperative Banks are in organized sector Indigenous banks, money lenders, chit funds etc are in the unorganized sector. Financial instruments include bills, treasury bills, promissory notes, hundies, certificate of deposits etc. The important terms which relate to money market are: money market, call money, notice money, term money, held till maturity, yield to maturity, coupon rate, treasury operations and gild edged security
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19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36.
Under call money market, funds are transacted on overnight basis and under notice money, market funds are transacted for the period between 2 days and 14 days. The participants in call/notice money market currently include banks, primary dealers, development finance institutions, insurance companies and select mutual funds. Treasury bills are money market instruments used to finance the short term requirements of the Government of India. There are different types of treasury bills based on the maturity period and utility of the issuances like, ad-hoc treasury bills, 3 months, 6 months and 12 months treasury bills Treasury bills etc. in India at present are issued for the following periods namely; 91 days, 182 days and 364 days Call money is an amount borrowed or lent on demand for very short period When the period of call money is more than one day; however, lesser than 14 days, it is called as notice money Certificate of deposit is a negotiable promissory note, secure and short term of up to a year in nature. Commercial paper is freely negotiable by endorsement and delivery. An inter corporate deposit or ICD is an unsecured loan extended by the corporate to another. Ready forward contracts are transactions in which two parties agree to sell and repurchase the same security. Bills of exchange are negotiable instruments drawn by the seller or drawer of the goods on the buyer or drawee of the goods for the value of the goods delivered. Pass through certificate is an instrument with cash flows derived from the cash flow of another underlying instrument or loan. Pass through certificates have two to three year maturity because the issuance stamp duty rate makes shorter duration PTCs unviable. A bill market is the market which deals in short term bills. The bills may be of two types i) bills of exchange or commercial bills and ii) finance bills or treasury bills. Bill market scheme was introduced by Reserve Bank of India in 1952. New Bill market scheme was introduced by RBI in 1970.
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37. 38. 39. 40. 41. 42. 43. 44. 45. 46. 47. 48. 49. 50.
The gilt edged market refers to the market for government and semi government securities, backed by RBI. The industrial securities market refers to the market which deals in equities and debentures of the corporate. Industrial securities market is divided into primary market and secondary market. Securities and Exchange Board of India was established during the year - 1988 In India, there are 23 stock exchanges Securities and Exchange Board of India got its legal status in 1992. CRISIL – Credit Rating Information Services of India – was established in 1988 ICRA – Investment Information and Credit Rating Agency of India Limited – was established on 1991 CARE – Credit Analysis and Research Limited – was established in 1991 IEPF – Investors Education and Protection Fund was set up by SEBI in 2001 NSE has introduced the derivatives trading in the equities in November, 2001 IRDA – Insurance Regulatory and Development Authority was set up in 2000 CCIL – Clearing Corporation of India Limited OTCEI – Over the counter exchange of India – was incorporated in 1990 under the companies act 1956
BANKING TERMS - ABBREVIATIONS 01. 02. 03. 04. 05. 06. 07. 08. 09.
ISCI – International Standard Industrial Classification KCC – Kisan Credit Card KVIC – Khadi and Village Industries Corporation KYC – Know your customer LAMPS – Large Sized Adivasi Multipurpose societies LERMS – Liberalised Exchange Rate Management System LIC – Life Insurance Corporation of India MCA – Ministry of Company affairs MIS – Management Information System
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10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. 46. 47. 48.
MICR – Magnetic Ink Character Recognition NABARD – National Bank for Agriculture and Rural Development NBFC – Non Banking Finance Companies NEFT – National Electronic Funds Transfer NPA – Non Performing assets NRE – Non Resident External account NRI – Non Resident Indian NSE – National Stock Exchange OLTAS – Online tax accounting system OMO – Open market operations PACS – Primary Agricultural Credit Societies PDO – Public Debt Office PIN – Personal Identification Number QIB – Qualified Institutional Buyers RBI – Reserve Bank of India RDBMS – Relational Database Management System REC – Rural Electrification Corporation RFC – Resident Foreign Currency RIDF – Rural Infrastructure Development Fund RRB – Regional Rural Bank RTGS – Real Time Gross Settlement RWA – Risk Weighted Assets SBI – State Bank of India SCB – Scheduled Commercial Bank SDR – Special Drawing Rights SEBI – Securities and Exchange Board of India SFMS - Structured Financial Messaging Services SHG – Self Help Group SIDBI – Small Industries Development Bank of India SIDC – State Industrial Development Corporation SJSRY –Swarna Jayanthi Shahari Rozgar Yojana SLR – Statutory Liquidity Ratio SLRS – Scheme for Liberation and Rehabilitation of Scavangers SMERA – SME rating agency of India Limited SSI – Small Scale Industries SME – Small and Medium Industries SSSBE – Small Scale Service and Business Enterprises UTI – Unit Trust of India WPI – Wholesale Price Index
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49. 50.
YTM – Yield to maturity LAB – Local Area Banks
01. 02. 03. 04. 05. 06. 07. 08. 09. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32.
ALM – Asset Liability Management ANBC – Adjusted Net Bank Credit ASBA – Applications supported Bank accounts BOE – Bill of Exchange CASA – Current and savings accounts CBLO – Collateralised Bank Lending Obligations CIBIL – Credit Information Bureau of India Limited DPG – Deferred Payment Guarantee DPN – Demand Promissory Note DRAT – Debt Recovery Appellate tribunal DRI – Differential Rate of Interest DSCR – Debt Service Coverage Ratio EDI – Electronic Data Interchange EMI – Equated Monthly Instalments EPS – Earnings Per Share ESOP – Employee Stock Options FEDAI – Foreign Exchange Dealers Association of India FFMC – Full Fledged Money Changers FOB – Free on Board LIBOR – London Inter Bank Operations Rate MIBOR – Mumbai Inter Bank Operations Rate MOU – Memorandum of Understanding MCA – Ministry of Company Affairs NPV – Net Present Value OCB – Overseas Corporate Bodies POA – Power of Attorney RKBY – Rashtriya Krishi Bima Yojana SEBI – Securities and Exchange Board of India LAF – Liquidity Adjustment Facility IDBI – Industrial Development Bank of India BCSBI – Banking Codes and Standards Board of India IRDA – Insurance Regulatory Development Authority
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33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. 46. 47. 48. 49. 50.
DICGC – Deposit Insurance and Credit Guarantee Corporation SPV – Special Purpose Vehicle CRISIL – Credit Rating Information Services of India Limited ICRA – Investment Information and Credit Rating Agency of India Limited CARE – Credit Analysis and Research Limited MCX – Multi Commodity Exchange CCIL – Clearing Corporation of India Limited OTCEI – Over the Counter Exchange of India EFT – Electronic Funds Transfer ARF – Asset Reconstruction Fund MSS – Market Stabilisation Scheme CRAR – Capital to Risk Assets Ratio FSDC – Financial Stability and Development Council SCARDB – State Cooperative Agriculture and Rural Development Banks LERMS – Liberalised Exchange Rate Management System BOT – Balance of Trade CAC – Capital account convertibility NDS – Negotiated Dealing System
BANKS – PUNCHLINES 01. 02. 03. 04. 05. 06. 07. 08. 09. 10. 11. 12. 13.
Allahabad Bank – A tradition of trust Andhra Bank – For all your needs Bank of Baroda – India‘s International Bank Bank of Maharashtra – One family one bank Bank of India – Relationship beyond banking Canara Bank – Together we can Central Bank Of India – Build a better life around us Corporation Bank – Prosperity for all Dena Bank – Trusted Family Bank Indian Bank – Your tech friendly Bank Indian Overseas Bank – Good people to grow with Oriental Bank of Commerce – Where every individual is committed Punjab National Bank – The name you can bank upon
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14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36.
Punjab and Sind Bank – To strive to achieve excellence in customer service Syndicate Bank – Faithful and friendly United Commercial Bank – Honours your trust Union Bank of India – Good people to bank with United Bank of India – The bank that begins with ―U‖ Vijaya Bank – A friend you can bank on State Bank of India – With you all the way State Bank of Hyderabad – Modern Innovative dependable State Bank of Mysore – Working for a better tomorrow State Bank of Patiala – Blending modernity with tradition State Bank of Travancore – Since 1945 – a long tradition of trust ICICI Bank – Hum Hai Na IDBI Bank – Banking for all HSBC bank – World‘s local bank HDFC Bank – We understand your world Bank of Rajasthan – Together we prosper Federal Bank – Your perfect Banking partner Yes Bank – Experience our expertise Jammu and Kashmir Bank – Serving to empower Lakshmi Vilas Bank Limited – The changing face of prosperity Karur Vysya Bank – Smart way to Bank Deutshe Bank – A passion to perform South Indian Bank Limited – Experience Next Generation Banking
37. 38. 39. 40. 41. 42. 43. 44. 45. 46. 47. 48. 49.
Important Foreign Banks in India Standard and Chartered Bank – United Kingdom HSBC – United Kingdom Royal Bank of Scotland – United Kingdom Barclays Bank – United Kingdom Citi Bank – United States of America Citi Bank – USA JP Morgan chase bank – USA Bank of America – USA ABN AMRO Bank – The Netherlands ABU Dhabi Commercial Bank – UAE Bank of Ceylon – Sri Lanka BNP Paribas Bank – France Societe Generale – France
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China Trust Commercial Bank – Taiwan Deutsche Bank – Germany Scotta Bank – Canada DBS Bank – Singapore
01. The administrative heads of the department heads are responsible for compliance of Official Language Policy of Government of India 03. The locker holder is sick and as such he gives an authority in favor of the minor son to operate the locker and in this case, the bank can allow the minor to operate the locker 04. A – a minor endorses a cheque in favour of B. In the case of dishonour, A - cannot be held liable- as when a minor endorses a cheque all parties are liable except the minor 05. You come across a cheque on which neither the words bearer nor order are written. You will make the payment of this cheque by treating it as an order cheque 06. Debt Service Coverage Ratio denotes solvency position of the firm 07. Shroff committee had recommended that companies entering into merger and acquisition transactions, making preferential allotment of shares to related parties and proposing buyback of shares must appoint registered valuer for independent valuation of shares and assets 08. Debt equity ratio denotes the solvency position of the firm 09. The accountholder is the drawer of the cheque 10. Not negotiable crossing means that the holder in due course will not get the better title 11. Account opening form is a very important document because it forms the basis of contract between the bank and the customer and it contains the offer of the customer to enter into a contract with the bank 12. The following are not abound on a negotiable instrument as drawer, acceptor or endorser –a lunatic, an alien enemy and an insolvent 13. An order cheque is transferable only by endorsement and delivery 14. The term – ―allonge‖ refers to a plain sheet appended to a negotiable instrument for the purpose of making endorsement thereon https://www.facebook.com/groups/BANKPOANDCLERK
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15. The following endorsements are invalid – endorsement after maturity of the instrument, partial endorsement, endorsement on a discharged instrument and endorsement in the case of negotiation 16. ―Account Payee‖ crossing is not mentioned in the Negotiable Instruments Act – 1881 17. The ―protest‖ is the formal notarial certificate attesting the dishonour of the bill, and based upon the noting. 18. Service Area Approach is a result of recommendation of committees headed by P D Ojha 19. A person who owns unirrigated land of 3 acres will be classified as a small farmer 20. A foreign traveller encashes travellers cheques for $1000 at Rs. 47.25. It is a purchase transaction 21. A restricted letter of credit is one in which the negotiation is restricted to a specific bank 22. Red Clause letter of credit is one which authorizes release of preshipment finance to the beneficiary 23. Limited company means – limited liability clause in memorandum of association. 24. Garnishee Order is issued under Rule 46 of Order XXI of the schedule to the code of Civil Procedure - 1908 25. A contract of guarantee is defined as – a contract to perform or discharge the liability of the principal debtor in the case of his default 26. To be a valid acceptance, the drawee shall affix his signature with or without the words – „Accepted” 27. A Government Company means 51% of the paid up share capital is held by State Government and/or Central Government 28. If the registrar of DRT refuses to file the suit due to discrepancies in copybook, the bank can file the appeal before presiding officer of DRT within 15 days 29. Lok adalats are constituted under Legal Services Authorities act 30. Stamp duty earned by the government on demand promissory note goes to the state government
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31. When the bill becomes due for payment – it is the starting point of limitation on a bill of exchange payable at a fixed time after date 32. Cash Reserve Ratio is maintained by the banks by keeping cash balance with Reserve Bank of India 33. Nomination facility can be allowed in the following cases – deposit account of individuals, articles kept in safe custody and lockers 34. A certificate of deposit is an usance promissory note 35. Subordinated debt is an element of tier II capital 36. Accumulated loss will be deducted from tier I capital 37. Vaghul Committee had recommended the introduction of Certificate of Deposits 38. The basic nature of a Commercial Paper is – it is usance promissory note 39. ―A pass through certificate‖ - PTC can be of the following nature in securitization transactions – with recourse and without recourse 40. Global depository receipt is listed on Stock Exchange outside USA 41. Current Ratio denotes liquidity 42. Simultaneous Sale and Purchase of a share to take the benefit of the variation in prices in two different markets is called – Arbitrage 43. Current Ratio denotes – liquidity 44. Debt Recovery Tribunals have been created by the Government as a result of the recommendations of Narasimhan Committee 45. When a bill matures on a public holiday, the maturity date of the bill falls on the next preceding business day 46. A negotiable instrument can always be negotiated until it has been paid up or satisfied 47. In the case of dishonor of a foreign bill, protest is compulsory when it is required by the law of the place where it is drawn 48. An engineer is financed for the purchase of a car. The same can be classified as Non priority sector 49. Under drip irrigation system water is used very economically and supplied drop by drop to the roof zone of crop 50. ―Yellow Revolution‖ is in connection with growing of fruits specially banana 51. The economic life of a tractor is - 10 years https://www.facebook.com/groups/BANKPOANDCLERK
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52. The natural guardian of a married minor girl is her husband 53. The minimum number of share holders in a Private Limited Company – two members 54. To open an ―Administrator account‖ the bank requires letter of administration 55. Karta has the absolute authority to appoint any person as an agent and the agent need not to be a family member 56. Garnishee Order – is the court order obtained by judgment creditor attaching funds with Bank of judgment debtor 57. Indemnity means to make good the loss to the promise/indemnity holder 58. A bearer who takes a bearer cheque bonafide and for value will be a holder in due course 59. Mortgage is defined in – Section 58 of transfer of property act – 1882 60. A banker can exercise the right of set-off only in respect of debts due and determined 61. Banks are restricted to advance against its own shares – as per “Banking Regulation Act” 62. The recovery of dues after issuance of recovery certificate by Presiding Officer of DRT can be made through – Recovery Officer of DRT 63. The roles of Lok Adalat – to arrive at compromise or settlement; issue final judgment and to give the consented decree 64. The remedy under Section 138 of Negotiable Instruments Act is available – when the cheque is presented to paying banker within a period of six months or within the period of its validity whichever is earlier 65. In case a document travels from higher stamp area to lower stamp area, additional stamps are not required to be affixed 66. The purpose of maintaining a ―documents execution register‖ is that it is a prima facie evidence of execution of documents 67. One rupee note bears the signature of the Secretary, Ministry of Finance 68. Nomination facility is not allowed in joint safe custody accounts 69. Free capital is a part of tier I capital
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70. Kumar Mangalam Birla is the architect of SEBI‟s Corporate Governance Code 71. Malhotra Committee had suggested to establish an “Insurance Regulatory Authority” 72. The minimum denomination for a Commercial Paper is Rs.5.00 lakhs 73. The maximum period for which a Certificate of Deposit can be issued – not more than 12 months 74. Capitalisation of reserves leads to issue of bonus shares 75. 1,2,3,4,5,6,7,8,9 – numerals are called International form of Indian numerical 76. Key-board is an input device 77. MS - DOS is a system software 78. Dear money policy is meant to control inflation 79. Since an illiterate borrower cannot sign acknowledgment of debt, he affixes his thumb impression on it. The limitation period will be extended by this action 80. Section 45 Z of Banking Regulation Act relates to handing over of original paid cheques to the corporate customer 81. As per the Prompt Corrective Action scheme, RBI can initiate certain structured actions in respect of the banks which have hit the trigger points in terms of CRAR, Non performing advances and Return on advances 82. Under Know Your Customer guidelines, the identification and reporting of suspicious transactions are to be done on quarterly basis to Audit Committee of the board of directors 83. To prevent slippage of accounts to NPA category, RBI has designed broad framework detailing preventive and corrective measures. One of the measures is the introduction of new asset category between ―standard‖ and ―sub standard‖. This new category is called Special mention accounts 84. While opening accounts of Executors and Trustees to the estate of a deceased person, bank should scrutinize the trust deed, order of charity commissioner and probate 85. Stamp duty on which of the following documents does not vary from state to state – Mortgage agreements, hypothecation agreements, guarantee agreements and bills of exchange.
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86. If no time for payment is specified in a promissory note or bill of exchange, such an instrument is considered as – instrument payable on demand 87. Acceptance is not required in the case of promissory note and demand bill of exchange 88. To open an executor account the bank should insist on probate 89. The following do not fall within the implied powers of a partner under section 19(2) of the Partnership act, 1932 – opening a banking account on behalf of the firm in his own name, compromising or relinquishing any claim or portion of a claim by the firm and withdrawing suit or proceedings filed on behalf of the firm 90. In a balance sheet, profit is shown under liabilities side 91. The term – preshipment advances is used to describe advances granted to exporters for the purpose of manufacturing, processing, packaging etc. or simply procuring goods meant for export 92. In an account of a minor operated by the guardian, after the death of the guardian, the balance cannot be paid to the minor even though he has completed the age of 10 years 93. On the death of a partner, the firm having credit balance stands dissolved and to wind up the affairs of the firm the surviving partners are allowed to jointly operate the account and if it decides to continue after registering the Municipal Death certificate recording fresh mandate for operation, the existing account can be continued and operation allowed 94. Opening a banking account on behalf of the firm in his own name, compromising or relinquishing any claim or portion of the claim by the firm, withdrawing suit or processing filed on behalf of the firm do not fall within the implied powers of a partner under Section 19(2) of the Partnership act – 1932. 95. Garnishee order attaches debts due or accruing due. This means deposits payable on demand and payable at a future date 96. Parties to a guarantee are Principal debtor, surety and creditor 97. A cheque may be crossed by drawer or holder 98. The purpose of mortgage is to possess the ownership of others property
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99. A banker can set-off the amount held in the time deposit account of customer against the debit balance of the same customer in overdraft account only after maturity of the fixed deposit 100. Civil Procedure code provides the provision exemption for arrest in execution of a decree for money under Section 56 :::::::::::::: POINTS 01. 02. 03. 04. 05. 06.
07. 08. 09. 10. 11.
12. 13. 14.
Money laundering prevention act 2002 became effective since 1.7.2005 Cooperative Bank organization in India has three tier set up – Primary credit society; district cooperative bank and state cooperative bank The foreign direct investment limit in private sector bank is 74% RBI has partial control on – cooperative bank The committee which has proposed National Rural Bank is – N. Janardhan Reddy committee The organization whose functions has been taken over by NABARD from RBI are – Agricultural Refinance and Development Corporation; National Agricultural Credit Fund (long term operation) and National Agricultural credit fund (stabilization) The first modern bank in India – Presidency Bank and it was established during 1806 International Monetary Fund was established on 27.12.1945 International Monetary Fund has its headquarters at Washington DC World Bank was established during the year 1944 and it has its head office at Washington DC World Bank is a group of International Bank for Reconstruction and Development; International Development Agency; Multi lateral Investment of Guarantee Agency and International Centre of Settlement Investment Dispute IBRD – International Bank for Reconstruction and Development was established in 1945 IDA – International Development Association was established in 1960 IFC was established in 1956
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15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41.
ICSID – International Centre for Settlement and Industrial Disputes was established in 1966 MIGA – The Multilateral Investment Guarantee Agency was established in 1988 Asian Development Bank was established in December, 1966 Asian Development Bank has its head office at Manila World Trade Organization – WTO was established during the year, 1995 and it has head office at Geneva OPEC – Organization of the Petroleum Exporting Countries was established in 1960 Association of South East Asian Nations was established on 8.8.1967 and it has head office at Jakarta Imperial Bank was established during the year, 1921 Reserve Bank of India was established in 1.4.1935 RBI was nationalized on 1.1.1949 Industrial Finance Corporation of India was established during year, 1948 ICICI was established during January, 1955 Unit Trust of India was established on 1.2.1964 Industrial Development Bank of India was established during July, 1964 NABARD was established on 12.7.1982 IRBI – Industrial Reconstruction Bank of India was established on 20.3.1985 IRBI has been renamed as IIBIL since 6.3.1997 SIDBI was established during 1990 SIDBI – Small Industries Development Bank of India ICICI – Industrial Credit and Investment Corporation of India EXIM Bank was established on 1.1.1982 National Housing Bank was established during July, 1988 Life Insurance corporation of India was established during September, 1956 General Insurance Corporation was established during November, 1972 Regional Rural Banks were established during 2.2.1975 Risk Capital and technology Finance Corporation Limited was established during March 1975 Technology Development Information Company of India Limited was established during the year 1989
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42. 43. 44. 45. 46. 47. 48. 49. 50. 51.
Infrastructure Leasing and Financial Services Limited during the year, 1988 Housing Development Finance Corporation Limited was established during the year, 1977 State Bank of India was established during the year, 1955 Securities and Exchange Board of India was established during the year, 1988 Asian Development Bank – ADB established during the year 1966 has its head office at Manila – Phillipines Asian Pacific Economic Cooperation – APEC established during the year, 1989 has its headquarters at Singapore Shanghai Cooperation Organization – SCO established during the year, 1966 has its headquarters at Beijing – China African Union established during the year, 2001 has its head office at Addis Ababa – Ethiopia European Union established during the year, 1991 has its headquarters at Brussels (Belgium) Caribbean Development Bank – CDB established during the year, 1969 has its headquarters at St. Michael – Barbados
POINTS 01. 02. 03. 04. 05.
Shiksha Sahyog Yojana – SSY was launched during the year 2001-2002 with an objective to provide education for children living below poverty line Sampoorna Gramin Rojgar Yojana - SJRY was launched during the year, 2001 for providing employment and food security Jai Prakash Rojgar Guarantee Yojana- JPRGY was launched during the year 2002-2003 to provide employment guarantee to unemployed in the most backward districts in the country National Food for work programme – NFFWP was launched during the year 2004 – to intensify the generation of supplementary wage employment Bharat Nirman Programme - BNP was launched during the year 2005 – for the development of rural infrastructure including six components: irrigation, water supply, housing, road, telephone and electricity
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06.
07. 08. 09.
10. 11.
12.
13. 14.
15.
National Rural Health Mission - NRHM was launched during the year 2005 to provide accessible, affordable and accountable quality health services to the poorest households in the remotest rural regions Jawaharlal Nehru National Urban Renewal Mission was launched during the year, 2005-2006 to assist cities and towns in taking up housing and infrastructural facilities to the urban poor National Rural Employment Guarantee Act – NREGA was launched during the year, 2006 to provide at least 100 days wage employment in rural areas Ujjwala scheme was launched during the year, 2007 for the prevention of trafficking and rescue, rehabilitation and reintegration of victims of trafficking for commercial sexual exploitation Aam Aadmi Bhima Yojana – AABY was launched during the year, 2007 – to provide insurance to the head of the family of rural landless households in the country against death and disability Rashtriya Swasthiya Bima Yojana – RSBY was launched during the year, 2007. As per the scheme the workers and their family members in the unorganized sector, living below poverty line will be covered for health care, smart cards to be issued to the beneficiaries to enable cash less transaction – the total sum assured is Rs. 30000 per family per annum. Central and state share is 75:25 Indira Gandhi National Old Age Pension Scheme – IGNOAPS was launched during the year, 2007 to provide monthly pension of Rs. 200 to those people living below poverty line, who has crossed 65 years of age Unorganised workers social security act was launched during the year 2008 to provide social security to the poor workers and their families working in un-organised sector Indira Gandhi National Widow Pension Scheme and Indira Gandhi National Disability Pension Scheme were launched during the year, 2009 to provide pension of Rs. 200 to widows between the age group 40-64 years and disability pension scheme aims to provide pension to severely disabled persons. Pradhana Mantri Adarsh Gram Yojana was launched during the year, 2009 – with the main objective for integrated development of 1000 villages having population of scheduled castes above 50%
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16. 17.
18. 19. 20.
21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31.
32. 33.
Sarva Siksha Abyan was launched during the year 2010-2011 to provide scholarship for SC/ST students of classes IX and X MGNREGA was launched during the year 2011 – to increase the remuneration of Anganwadee workers from Rs. 1500 to 3000 per month and for Anganwadee helpers from Rs. 750 to Rs. 1500 per month BSE – is situated at Mumbai NSE – National Stock Exchange was incorporated in 1992 NSE was incorporated by Industrial Development Bank of India, Industrial Credit and Investment Corporation of India, Industrial Finance Corporation of India, all insurance corporations, selected commercial banks and others. NSE provides exposure to investors in two types of markets namely; wholesale debt market and capital market Capital market is the market for long term funds A savings bank is a financial institution whose primary purpose is to accept savings deposits A commercial bank is an institution which accepts deposits, makes business loans and offers related services. Development Banks are those financial institutions engaged in the promotion and development of industry, agriculture and other key sectors Development banks are IFCI; ICICI and IDBI IFCI – Industrial Finance Corporation of India ICICI – Industrial Credit and Investment Corporation of India IDBI – Industrial Development Bank of India Cooperative Banks are registered under the Cooperative Societies act, 1912 The following are the functions of exchange banks – remitting money from one country to another country, discounting of foreign bills, buying and selling gold and silver and helping import and export trade The functions of banks can be classified into three parts namely; primary functions, secondary functions and social/development functions The primary functions are – accepting deposits and advancing loans
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34. 35. 36. 37.
38.
39.
40. 41.
42. 43. 44. 45. 46. 47. 48.
The different types of deposit accounts are: Term deposits namely – Fixed deposit, Reinvestment deposit and Recurring deposit; current account; savings deposit and demat account The different types of loans are – cash credit, overdraft, loans and advances, discounting of the bill of exchange and investment in government securities The secondary functions can be classified into agency or representative functions, general utility services and social/developmental functions Agency or representative functions include – collection and payment of various items; purchase and sale of securities; trustee and executor services; remitting money; purchase and sale of foreign exchange; letter of references and other agency functions General utility services include – locker facilities, business information and statistics; help in transportation of goods; acting as a referee; issuing letters of credit; acting as underwriters; issuing of travelers cheques and credit cards; issuing gift cheques, dealing in foreign exchange and merchant banking services. The social development functions include – capital formation, inducement to innovations, impact on the rate of interest, role in the development of rural sector and helpful in pushing up the demand E-banking is also called as virtual banking The popular services which are covered under e-banking are: automated teller machine, debit card, electronic funds transfer, mobile banking, telephone banking, credit card, smart card, cheques truncation payment and internet banking Securities and Exchange Board of India – SEBI was established in 1992 Control of capital issues was the regulatory authority before SEBI came into existence SEBI has to be responsive to three groups namely; the issues of securities; the investors and the market intermediaries PMAC – Primary Market Advisory Committee SMAC – Secondary market advisory committee SCODA – SEBI committee on disclosures and accounting standards SIDBI – Small Industries Development Bank of India – SEBI was established in 1989
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49.
50.
IRBI – Industrial Reconstruction Bank of India has been reconstituted into a full fledged all purpose development bank on 27.03.1997 under the companies act and it is now known as Industrial Investment Bank of India Limited. National Housing Bank was established in July 1988 under National Housing Bank act 1987
POINTS 01. In the case of a bearer cheque, the identity is not necessary 02. When an order cheque is endorsed in blank, it becomes payable to bearer and transferable by mere delivery 03. A cheque crossed ―Not Negotiable‖ is still transferable 04. As per section 138 of Negotiable Instruments Act, there is a provision of penalty when the cheque issued in discharge of a liability is dishonoured due to insufficient funds in the account and if the cheque has been presented to the bank within a period of six months and is not honoured due to insufficient funds 05. A fixed deposit receipt cannot be endorsed 06. A cheque is presented in an account but there is no sufficient balance to meet the same. The cheque will be returned with the remarks – insufficient funds 07. The cheque on behalf of a partnership firm can be stopped for payment by any partner whether authorized to operate the account or not 08. The marginal farmer is one who possesses agriculture land up to 1.25 acres of irrigated or 2.5 acres of non-irrigated land 09. Registration of charge is not required in the case of pledge, lien, set-off and appropriation 10. Loans for construction of godown for own use of farmers is not part of indirect finance to agriculture 11. Olericulture is cultivation of vegetables 12. Agriculture labourer is a labourer whose income from agriculture is more than 50% 13. Nostro account is an account of Indian Bank with a Foreign Bank in foreign currency 14. Resident Foreign Currency (RFC) account scheme is available for Home Returned NRI https://www.facebook.com/groups/BANKPOANDCLERK
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15. Under packing credit limit, the extent of finance is computed on the basis of FOB 16. Forfaiting refers to discounting of export bill without recourse to the seller 17. In an overdraft account, when the death notice of partner is received the bank should stop the operations to avoid application of Clayton‟s case 18. A company is not dissolved by lunacy of a director or bankruptcy of a director or death of a director 19. In the case of insolvency, the banker‟s obligation to honour customers‟ cheques comes to an end when the customer is adjudged insolvent 20. A lien is the right to retain goods or securities belonging to a debtor until he has discharged a debt due to the retainer thereof 21. The shareholders of a Private Limited Co cannot transfer the shares to other public 22. The rule in Clayton‘s case applies in the case of running accounts having debit balances 23. The term banking has been defined by Banking Regulation act – 1949 24. Bills drawn in respect of goods delivered by parties to various Government/Semi Government departments are known as supply bills 25.Goiporia committee has made the recommendation – Commencement of employee working hours should be 15 minutes before commencement of business hours 26. Banking companies are registered under – Banking Regulation act 27. Bipartite settlements are registered under Industrial Disputes Act 28. Financial products, whose prices are derived from the price of the underlying currency, interest rate, stocks etc. are called – securitization 29. Revaluation reserves is a part of subsidiary capital/tier II capital 30. Y V Reddy – committee had revised the concept of liquidity and monetary aggregates 31. Verma Committee was appointed to examine the restructuring of weak banks 32. The process through which any member-owned organization becomes a shareholder-owned company is called demutualization https://www.facebook.com/groups/BANKPOANDCLERK
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33. Official Language deals with the following articles of constitution – 343 to 351 34. Hindi was declared as the official language of the union on 14-091949 35. The system of electronic funds transfer was suggested by the committee headed by – B D Shah 36. INFINET is – RBI‟s VSAT based communication system 37. The negotiable instruments act is applicable in the entire part of the country 38. If the cheque is drawn in favour of ―Mother God‖ or order, the cheque is to be returned since drawn on fictitious name 39. A cheque payable to Rohit is endorsed as follows – Pay to “Kabil on his marriage”. This endorsement is conditional endorsement 40. The cheque crossed – account payee drawn in favour of Mr Brij Nand is presented by Ramana Nand in his account and in this case the bank should not make the payment 41. The following are not negotiable instruments – airway bill, a currency note, a letter of credit and lorry receipt 42. Under section 25 of Negotiable Instruments Act, public holidays are declared by – the state government by notification in the official gazette 43. Conversion means – not crediting the amount in the account of true owner 44. By ―General Crossing‖ we mean two transverse parallel lines on a cheque 45. Forward exchange contract is an agreement where the foreign exchange is delivered at predetermined future date at a contracted date 46. Unless otherwise specified in the letter of credit, the insurance amount should be expressed in the currency of the letter of credit 47. On the death of the partner, bank opens a new account to rule-of the existing account to avoid application of Clayton‟s case 48. Executor – in banking means a person named by the deceased in his will and for which probate is obtained 49. The partnership firm doing the banking business cannot have more than 10 partners, and other business not more than 20 partners otherwise it will become illegal association. It is provided in Companies act https://www.facebook.com/groups/BANKPOANDCLERK
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50. Prospectus is an invitation to the public to subscribe shares or debentures or deposits 51. According to the rule in Clayton‘s case, the money paid in by a customer has to be applied towards adjustment in overdraft account in order of time in which the debits were incurred 52. Banking company is prohibited for undertaking business like trading of goods etc under – Banking Regulation act 1949 53. In the case of return of cheque for availing remedy under section 138 of Negotiable Instruments act, the holder will have to give notice to the drawer within 30 days of return of cheque 54. When a firm has branches at different places and wishes to avail the loan at all stations, the documents will be executed at its Head Office and sub limits will be allocated to branches at different places 55. In case of any doubt about stamp duty, clarification can be sought from State Stamp Authority and Controller of stamp duty 56. Banks were nationalized under – Banking Company (Acquisition and transfer of undertaking) act-1970 57. When an account shows debit balance, the banker is a creditor and when the account shows credit balance, the banker is the debtor 58. Partnership firms cannot do the business of banking and it is provided under the banking regulation act 59. The concept of authorized deduction and illegal deduction is mentioned in the act – Payment of wages act 60. The process of replacing paper securities into electronic holding of shares is known as – dematerialization 61. Official Language policy came into force from 16.01.1950 62. The Central Processing Unit – CPU- consists of control unit and arithmetic logic unit 63. When the price of a dollar is raised from Rs. 48 to Rs. 55, the exporter will be benefited in terms of rupee 64. A cheque is the mandate of the accountholder 65. When a cheque without a date is presented for payment, the banker should return the cheque 66. In a cheque the name of the banker had been written with or without the words – ―Not negotiable‖ – In this case, it is called as a special crossing 67. For negotiating a negotiable instrument there are no limits https://www.facebook.com/groups/BANKPOANDCLERK
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68. A bearer cheque is transferable only by delivery 69.A bill drawn in Paris and drawn in favour of a trader in Mumbai and payable in Chennai is called a foreign bill 70. The Negotiable Instruments Act provides protection to the collecting banker in respect of Conversion 71. Crossing of a cheque denotes that it should be paid to a banker only 72. By noting, it is meant that the fact of dishonour has been recorded by the notary public on a dishonoured bill or/and on a plain paper attached to the bill 73. Sericulture is classified under – direct agriculture advance 74. Mahima relates to refinance by NABARD to banks for onlending to agencies for marketing of non farm products of rural women 75. Foreign exchange transactions are viewed always from the angle of the bank 76. The responsibility of managing the foreign exchange resources lies with – Reserve Bank of India 77. EXIM policy is announced by the Ministry of Commerce 78. In a Free on Board contract, freight and insurance will be borne by the importer 79. If a letter of credit is slient about the revocability, then the letter of credit is irrevocable 80. Crystalisation of sight export bills purchased/negotiated will be done on the expiry of transit period plus 30 days 81. A transferable letter of credit can be transferred only once 82. Natural guardian under Hindu Minority and guardianship act, 1956 will be – his father and after him the mother 83. For banking transactions, an administrator is one who is appointed by the court if the deceased has died intestate 84. Banker‘s lien is an implied pledge 85. A contract of insurance is a contract of indemnity 86. Acceptance of an usance bill will be made on the face of the bill 87. The right of set-off can be exercised by the banker only when the relationship between the customer and the banker is that of debtor and creditor 88. Bank must create reserve fund and 25% of the profits should be transferred to this fund before any dividend declared is contained in Banking Regulation act https://www.facebook.com/groups/BANKPOANDCLERK
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89. Limitation period for availing the remedy under Section 138 of Negotiable Instruments Act is one month from the date of cause of action 90. In case the amount of loan to a company is decreased or increased, the memorandum of modification or charge is submitted to the Registrar of companies 91. The rate of revenue stamp is the same throughout India except in Jammu and Kashmir 92. When articles are kept in safe custody, the relationship between banker and customer is that of bailee and bailor 93. In the case of minor‘s joint account with the guardian and when the minor attains majority, the guardian should not be allowed to operate the account 94. Wages of employees are settled under Minimum wages act 95. CB Bhave committee has looked into ways to reduce cost of demat operations and the said companies should bear a substantial part of dematerialization costs 96. Basle committee relates to Capital Adequacy 97. In Camel‘s rating – E stands for earnings 98. The revised definition of a sick SSI unit has been given by Kohli committee 99. Greenshoe option is retaining the full/part of equity subscribed by investing public over and above that issued 100.Hindi is accepted as an official language of the union under Devanagiri script :::::::::::::::::::::
POINTS 01. RBI was established during the year, 1935 02. RBI act was enacted during 1934 03. RBI has three main functions namely; traditional functions, development functions and regulatory functions 04. The traditional functions consist of issue of currency, forex management and miscellaneous functions. 05. The miscellaneous functions include export assistance, clearing house functions, change of currency, transfer of currency, publication of statistics and other information, training in banking https://www.facebook.com/groups/BANKPOANDCLERK
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06. The development functions mainly consist of agriculture development, promotion of industrial finance, promotion of export through refinance, development of bill market and development of banking system 07. The regulatory functions mainly consist of qualitative credit control, bank rate, differential rate of interest, open market operations, CRR, SLR, direct action, credit authorization scheme and moral persuasion 08. The financial system comprises of– financial markets, financial assets and financial intermediaries and institutions 09. Financial markets are classified into money market and capital market 10. The capital market consists of the following financial instruments namely; government or gilt edged securities, corporate securities, shares, debentures, public deposits and loan from institutions 11. The financial regulatory authorities in India consist of RBI, SEBI and IRDA 12. The money market terms are: money market, call money, notice money, term money, held till maturity, yield to maturity, coupon rate, treasury operations and gilt edged securities 13. The financial instruments consist of bills, treasury bills, promissory notes, hundies, certificate of deposits and commercial papers. 14. Stock exchanges are available in important cities in the country 15. Mumbai stock exchange – Mumbai 16. National stock exchange – Mumbai 17. Ahmedabad stock exchange – Ahmedabad 18. Bangalore stock exchange – Bangalore 19. Bhubaneswar stock exchange – Bhubaneswar 20. Kolkatta stock exchange – Kolkatta 21. Cochin stock exchange – Cochin 22. Coimbatore stock exchange – Coimbatore 23. Delhi stock exchange – Delhi 24. Guwahati stock exchange – Guwahati 25. Hyderabad stock exchange - Hyderabad 26. Jaipur stock exchange – Jaipur 27. Ludhina stock exchange – Ludhiana 28. Madhya Pradesh stock exchange – Indore 29. Chennai stock exchange – Chennai https://www.facebook.com/groups/BANKPOANDCLERK
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30. Magadh stock exchange – Patna 31. Mangalore stock exchange – Mangalore 32. Meerut shah stock exchange – Meerut 33. OTC Exchange of India – Mumbai 34. Pune stock exchange – Pune 35. Capital stock exchange of India – Trivandrum 36. Uttar Pradesh stock exchange – Kanpur 37. Vadodara stock exchange – Vadodara 38. There are different types of banks namely; savings bank, commercial bank, Industrial bank, development bank, Land development bank, indigenous bank, central bank, cooperative bank, exchange bank, consumer bank 39. Banks have the following functions namely; primary functions, secondary functions and social development functions 40. The primary functions consist of accepting deposits namely; fixed deposit, savings bank, current account, recurring deposit, demat account 41. The primary functions consist of granting different categories of loans namely; cash credit, overdraft, loans and advances, discounting of bill of exchange, investment in government securities 42. The secondary functions can be classified into agency or representative functions and general utility services 43. The agency or representative functions consist of – collection and payment of various items; purchase and sale of securities; trustee and executor business; remitting money; purchase and sale of foreign exchange; issue of letter of references and other agency functions 44. The general utility services consist of locker facilities, business information, help in transportation of goods, acting as a referee, issuing of letters of credit, acting as underwriters, issue of traveler cheques, issue of gift cheques and dealing in merchant banking 45. The social development functions consist of capital formation, inducement to innovations, impact on the rate of interest, role on the development of rural sector and helpful in pushing up the demand 46. The popular services covered under e-banking are; automated teller machine, debit card, credit card, smart card, EFT, cheque truncation payment, mobile banking, internet banking and telephone banking 47. The services of e-banking include bill payment service, funds transfer, credit card customers, railway pass, investing through https://www.facebook.com/groups/BANKPOANDCLERK
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internet banking, recharging prepaid mobile connections, shopping, RTGS funds transfer and online payment of taxes 48. The Narasimhan committee report I pertains to 1991 consisting of reduction in SLR/CRR; phasing out of directed credit program; interest rate determination; structured reorganization of the banking sector, establishment of ARF tribunal, removal of dual control and banking autonomy 49. The second Narasimhan committee report pertains to the year, 1998 consisting of strengthening of banks in India, narrow banking, Capital adequacy ratio, bank ownership and review of banking laws 50. The cooperative banking structure consists of five categories namely; primary agricultural credit society; district central cooperative banks; state cooperative banks or apex banks, Land Development Banks, SCARDB and Primary Urban Cooperative banks
POINTS 01. The following are covered in negotiable instruments act: promissory note, bill of exchange, cheque, exchequer bill, circular note, dividend warrant, share warrant, bearer debenture, bank note, bank draft 02. The following are not negotiable instruments: money order, postal order, deposit receipt and share certificate 03. The following are semi negotiable instruments: bill of lading, dock warrant, carriers‘ receipt, letters of credit, railway receipt and wharefinger‘s certificate 04. The bill of exchange consists of three parties namely; drawer, drawee and payee 05. There are four categories of cheques namely; open cheque, crossed cheque, bearer cheque and order cheque. 06. Open cheque is un crossed cheque or is called as blank cheque 07. Two parallel transverse lines on the face of the cheque denotes crossing of the cheque 08. When the name of any bank is written between the two transverse lines, it is called as special crossing
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09. Normally all cheques are bearer cheques. It means that it can be payable to the payee or to the bearer of the cheque 10. By striking the words ―bearer‖ in the cheque, the cheque can be made payable to order 11. Cheques can also be categorized into ante dated cheque, stale cheque, mutilated cheque and post dated cheque 12. When the cheque is out of date, it is said to be a stale one 13. When the cheque contains unwanted words or figures in the chque and some portion of the cheque is found missing, it is said to be mutilated 14. Post dated cheques are cheques where the date of the cheque is found to be the future date 15. The following are the varieties of hundies namely; darshani hundi, mitti hundi or muddati hundi, nam-jog hundi, furman jog hundi, dhani jog hundi, shah jog hundi, jokhim hundi, jawabi hundi, khaka hundi and khoti hundi 16. Dharshani hundi is payable immediately on demand 17. Mitti hundi is payable after the expiry of some period 18. Nam jog hundi is payable only to person named in the hundi 19. Furman jog hundi is payable to person the named in the hundi or any other person 20. Dhani jog hundi is payable to holder or bearer 21. Shah jog hundi is payable to shahs in the area 22. Johim hundi consists of conditions 23. Jawabi hundi invites acknowledgment from the person on acceptance 24. Khaka hundi is one which has been paid already 25. Khoti hundi is a defective hundi 26. In the case of deposit, the customer is creditor and the banker is debtor 27. In the case of overdraft account, the banker is creditor and the customer is debtor 28. A person who makes deposit with the bank is called as the depositor 29. A person who avails loan from the bank is called as the borrower 30. When any loan is backed by any immovable security like land, house, factory, it is said to be under mortgage 31. The person who mortgages the security is called as the mortgagor and the banker is called as the mortgagee https://www.facebook.com/groups/BANKPOANDCLERK
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32. When any loan is backed by any movable security like auto, truck, computer etc. it is said to be under hypothecation 33. The person who hypothecates the security is called as the hypothecator and the banker is called as the hypothecatee 34. When a person avails any loan against the security of LIC policy, it is said to be under assignment 35. When a person offers a fixed deposit as security for a loan, it is treated as pledge 36. The customer who pledges the deposit is called as pledgor 37. The banker on whom the deposit is pledged is called as the pledge 38. In the case of locker, the customer is lessee and the banker is called as lessor 39. In the case of safe custody receipt, the customer is called as bailor and the banker is called as the bailee 40. The different types of customers are – individuals and others 41. The individuals can be single individuals, joint individuals, minors, married woman, pardanashin woman, illiterate person and lunatic 42. In the case of hindu undivided family, the senior most male member is called as the karta 43. The business accounts can be opened by partnership firm, trustees, societies, charitable institutions and clubs 44. The person named in the will to receive the properties in the will is called as executor 45. In the absence of will, the person who is appointed by the court to receive the money is called as the administrator 46. Proprietorship firm is an account managed by a single individual called as proprietor 47. Companies can be divided into private limited company and public limited company 48. When the bank in India opens an account with a bank in a foreign country it is called as nostro account 49. When the bank in a foreign country opens an account with a bank in India, it is called as vostro account 50. When a bank in one foreign country opens an account with another bank in another country it is called as Loro account POINTS -
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01. When a company wants to open an account with a bank, they have to produce the following namely; memorandum of association, articles of association, certificate of incorporation, board resolution and certificate of commencement of business 02. Banks are subjected to the following risks namely; credit risk, liquidity risk, operations risk and market risk 03. Account to KYC guidelines, customers are classified into low risk customers, medium risk customers and high risk customers 04. Low risk clients are – salaried customers, government departments, government owned companies, regulatory and statutory bodies 05. Medium risk clients are – High net worth individuals, Non Resident individuals, blind people and pardanashin women 06. High risk clients are – trusts, charities, NGOs receiving donations, sleeping partners, persons who are covered under foreign contribution act, politically exposed persons of foreign origin, non face to face customers, high net worth NRI clients and bullion dealers and jewelers 07. Agriculture advances can be classified into direct agriculture and indirect agriculture 08. The following are considered to be the direct agriculture activities namely; finance to individual farmers, self help groups and joint liability groups who avail loan for agricultural purpose, crop production, investment loans, pre harvest and post harvest activity related loans 09. Indirect finance comprises of 2/3 rd loans to corporate, partnership firms, agro clinics and agribusiness centre, credit to fertilizers and pesticide and seed dealers, drip irrigation activities and sprinkler activities 10. Priority sector loans consist of retail trade, small business, professional and self employed, agriculture, small scale industries, self help groups, DRI loans, SC/ST beneficiaries 11. The following are considered to be weaker sections as per RBI guidelines – small business, marginal farmers, artisans/village and cottage industries for whom loans were granted up to Rs. 50000; SGSY beneficiaries, SC/ST beneficiaries, DIR, SJSRY beneficiaries, self help groups and minority community beneficiaries 12. In the case of deposits, father and mother are called as natural guardians 13. Savings bank account is termed as mother of deposits
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14. The following security provisions are available in a currency note namely; security thread, latest image, micro letterings, identification mark, intaglio printing, fluorescence, optically variable ink 15. The different categories of cooperative banks in the country are – primary agricultural credit societies, district central cooperative banks, state cooperative banks or apex banks, land development banks, SCARDB and primary urban cooperative banks 16. The rights of customers are – right to line, right to set off, right to appropriation, right to charge interest, commission and service charges 17. Lien is classified into particular lien and general lien 18. Different types of NBFC companies are – equipment leasing, hire purchase company, loan company, asset finance company, residuary non banking company, mutual benefit financial company, mutual benefit company and miscellaneous non banking company 19. The following private insurance companies are available in the country namely; HDFC standard life insurance co limited, MAX New York Life Insurance Co. Limited, ING Vysya Life Insurance Co Private Limited, ICICI prudential life insurance co limited, Kotak Mahindra life insurance co limited, Iffko Tokyo General Insurance co limited, Metlife India Insurance co limited, SBI life insurance co limited. 20. The specific principles of insurance business are – utmost good faith, insurable interest, indemnity, proximate cause and subrogation 21. The various products of Life Insurance corporation of India are – Term Insurance, whole life, endowment plans, money back, children‘s assurance plan and unit linked insurance plan 22. PMAC – Primary market advisory committee 23. SMAC – Secondary Market advisory committee 24. SCODA – SEBI committee on disclosures and accounting standards 25. TDICI – Technology development and Information company of India Limited 26. CFC – Credit capital finance corporation 27. VCF – venture capital fund 28. GVCFL – Gujarat venture finance company limited 29. GIIC – Gujarat Industrial Investment Corporation Limited 30. RCTFC – Risk capital and technology finance corporation Limited 31. RNBC – Residuary non banking company 32. MBC – Mutual benefit company https://www.facebook.com/groups/BANKPOANDCLERK
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33. MNBC – miscellaneous non banking company 34. ARWIND – Assistance to rural women in non farm development 35. NABCONS – NABARD consultancy services 36. STCC – short term rural cooperative society 37. FSDC – financial stability and development council 38. PCR – Partial rupee convertibility 39. CAC – Capital account convertibility 40. GST – goods and services tax has been replaced by VAT 41. Investor protection fund was established by BSE 42. FRBM – Fiscal responsibility and budget management 43. Yuan is the currency of China 44. Credit cards and debit cards are called as plastic money 45. IFRS – International finance reporting standards 46. The different types of credit are cash credit, micro credit, simple overdraft, no frill loans and rural credit 47. IPR – Intellectual property rights 48. State Bank of Indore was merged with State Bank of India 49. Banking services fall under service sector 50. Laxmi commercial Bank merged with Canara Bank POINT 01. The first private bank in India to receive an in principle approval from Reserve Bank of India was Housing Development Finance Corporation 02. The actual return of an investor is reduced sometimes as the prices of the commodities go up all of a sudden. In financial sector this type of phenomenon is known as market risk 03. The Narasimhan committee for financial sector reforms suggested reduction in statutory liquidity ratio and cash reserve ratio 04. The Global enabling trade report is released by world economic forum 05. Coins are minted at Mumbai, Hyderabad, Noida and Kolkatta 06. The set of directive principles issued by the central bank of a country or the process adopted by it to control the supply of money, availability of money, cost of money and rate of interest, etc in order to bring stability and growth of the economy are commonly known as – monetary policy of the central bank of the country
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07. Deciding policy rates like cash reserve ratio, repo rate and statutory liquidity ratio are not the functions of a commercial bank 08. Banks do not issue pan cards 09. Petro dollar means – money owned by oil rich countries invested in United States of America 10. Banking regulation act was framed specially to deal more effectively with the problem of non- performing assets in banking system 11. The new capital adequacy framework prescribed for the banks is commonly known as basel accord 12. PFRDA stands for – Pension Fund Regulatory and Development Authority 13. Indian Bank Association recently prepared a charter of the banking codes and services 14. SEBI is called as Securities and Exchange Board of India 15. SEBI has asked all foreign funds to come forward and register themselves as foreign institutional investors prior to any investment in India 16. PMGSY – Pradhan Mantri Gram Sadak Yojana 17. PMGSY was launched in 2000 18. As compared to traditional budgeting, the performance and programme budgeting system stresses more an outcome and less on expenditure allocation 19. Regional Rural Banks are empowered to transact the business of banking as defined under Banking Regulation act 1949 20. According to the Securities and Insurance Laws (Amendment) Bill 2010, RBI Governor will be the vice chairman of joint commission to resolve differences amongst the financial regulators 21. Adjustment credit is used in the field of finance and banking 22. Increase in interest rates is found to be the best option when RBI wants to block/hinder capital outflows and contain currency depreciation. 23. Globalisation means – the growth of a single united world market 24. The inflationary impact of the inflow of foreign capital in India is neutralized by RBI by sale of securities in the open market 25. The main function of International Monetary Fund is to help to solve balance of payment problems at member countries 26. Bank of Baroda is having the largest number of branches in foreign countries
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27. The documents which are considered as officially valid document to satisfy KYC guidelines for opening one bank account – pass port, PAN card, aadhar number issued by Unique Identification Authority of India 28. The standard of living in a country is represented by its per capita income 29. Phishing means – fraudulent way of acquiring PIN and bank passwords using email 30. State Bank of Mysore merged with State Bank of India during 2010 31. Prudential ICICI Mutual fund has been renamed as ICICI Prudential Mutual Fund 32. Government of India is in the process of the establishment of SROs for various market participants in the capital market 33. SRO means Small Regulatory Organisation 34. Micro credit or micro finance is novel approach to banking with the poor. In the approach bank credit is extended to the poor through self help groups 35. Reserve Bank of India prepares the balance of payments accounts in the country 36. An over valued currency in the foreign exchange market will have the following impacts in the country namely – make imports cheaper and exports costlier 37. When a large number of investors in a country transfer investments elsewhere because of disturbed economic conditions, it is called as flight of capital 38. Government of India promulgated Banking Companies (acquisition and transfer of undertaking) ordinance to acquire 14 commercial banks on 19.7.1969 39. On the current account balances maintained by the Regional Rural Banks with them, the commercial banks may pay interest at such rates as may be mutually agreed to 40. Bank rate signals the Reserve Bank of India‘s long term outlook on interest rates 41. In deposit accounts KYC (Know Your Customer) has been implemented in 2002 as per the directive of RBI 42. FRBM – Fiscal Responsibility and Budget Management 43. As national initiative which allows pregnant women to undergo delivery free of cost in government health institutions was recently launched and the name of the scheme is Janani Shishu Suraksha Yojana https://www.facebook.com/groups/BANKPOANDCLERK
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44. The following assets are considered as near money – bonds, time deposits, equity shares and travellers‘ cheques 45. Employer‘s contribution to contributory provident fund to employees is a transfer payment 46. Indian Depository Receipt is known as IDR 47. IDR is an instrument in the form of depository receipt created by an Indian depository against underlying equity shares of the issuing company 48. Mid day meal scheme has been launched by the Ministry of Food and Civil Supplies of Government of India 49. NABARD is the apex institution which handles refinance for agriculture and rural development in the country 50. ULIP stands for Universal Loan and Investment Plan
POINTS 01. The most effective channel other than traditional branch channel to achieve the aim of providing banking services to the people in rural and remote areas – putting biometric ATMs 02. Land Development Banks form part of the cooperative credit structure 03. KYC guideline is basically an anti money laundering exercise 04. Bharat Nirman Yojana is not welfare scheme launched by the Government of India 05. The following cannot be considered as a value added service offered by any bank – free cheque books 06. The minimum number of women required for formation of women groups under Development of Women and Children (DWCRA) program is 10 07. Dirham is the currency of UAE 08. The land development bank secure short term accommodation from – state governments, commercial banks and state cooperative banks 09. GNP stands for gross national product 10. FINO means Financial Investment Network and Operations
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11. Nationalisation of banks in the country took place under two phases – the first phase on 19.7.1969 for fourteen banks and on 15.4.1980 in the second phase for six banks 12. Industrial Exit policy means allowing the business units to close down 13. The following is not the feature of Real Time Gross Settlement – RTGS – settlement of funds in revocables 14. The 2011 census is the 15th census 15. Sub Prime refers to lending done by financing institutions including the banks to customers not meeting with normally required credit appraisal standards 16. National Rural Employment Guarantee Scheme is associated with Mahatma Gandhi 17. Currency is one among several terms used in banking 18. Standard and Poor is a credit rating agency 19. RBI is the banker of the banks and it is also called as the central bank of the country 20. The first bank in the country to implement reverse mortgage in the country is Punjab National Bank 21. Reverse mortgage scheme is beneficial for senior citizens for availing loan against immovable properties 22. State Bank of India has been appointed for refunding income tax to tax payers 23. Inflation has become a major area of concern in the country these days and Government of India and Reserve Bank of India normally take to control the same the following measures namely – system of dual prices; increase in supply of food grains and control on credit and liquidity in market 24. Government of India these days is very keen about the credit to the rural people and the product launched by the banks to provide loan/credit to the farmers quickly – Kisan Credit Cards 25. SEBI was established during the year 1988 26. SEBI was made a fully autonomous body in 1992 27. SEBI regulates the securities market and protect the interests of the investors in securities 28. The short and medium term cooperative credit structure in the country federal in character consists of three tiers viz: the State Cooperative banks at the state level; the central cooperative banks at
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the district level and primary cooperative credit societies at the village level. 29. Mutual funds are regulated by – SEBI – Securities and Exchange Board of India 30. Raghuram Rajan Committee had submitted recommendations on financial inclusion 31. The main function of the International Monetary Fund is to help solve balance of payments problem of member countries 32. NABARD is limited to the needs of agriculture and rural finance 33. SEBI is the regulator of the credit rating agencies in the country 34. The terms which are associated with banking operations are – repo rate, prime lending rate and corporate finance 35. Joint Liability Groups replicate the self help groups 36. UTI bank has officially changed its name to Axis Bank Limited 37. A hot money or the refugee capital is one which is transferred from one centre to another for greater safety 38. RBI has asked all the banks in the country to form customer service panels at branch levels 39. Indra Awas Yojana is one of the most successful programs under Bharat Nirman 40. SARFAESI act was framed specially to deal more effectively with the problem of non performing assets in the banking system 41. Operation market operations of Reserve Bank of India refer to trading in securities 42. SEBI has introduced a new tool named Data Warehousing and Business Intelligence System (DWBIS) for speedy analysis of data and identification of violations 43. EXIM bank is a term lending institution 44. Central Cooperative Banks occupy a crucial importance in the cooperative credit structure 45. Central Cooperative Banks form an important link between the State cooperative bank at the apex and the primary agricultural credit societies at the base 46. Central cooperative Banks are closer to the primary societies than an apex bank could be 47. In context with the business and banking, CRAR means Capital to Risk Asset Ratio 48. Rangarajan committee is the first committee that gave its recommendations relating to mechanization of banking system https://www.facebook.com/groups/BANKPOANDCLERK
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49. The definition of banking Instruments Act 1881 50. Employer‘s contribution to employees is a transfer payment
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QUESTIONS AND ANSWERS MODEL 51. What are the functions of any bank? – The bank accepts deposits from the public and lends loans to the public. Acceptance of deposits and lending loans are called as the primary functions. The secondary functions are – selling gold coins, selling insurance products and selling mutual fund products. Apart from the above, the banks open demat accounts also. 52. What do you know by demand deposits? – Current account and savings accounts are called as demand deposits. Current account is opened for business purpose carrying no interest and savings deposit is opened for the purpose of saving the money and it carries interest. The interest is at present decided by respective banks. 53. What do you know by KYC guidelines? – KYC means Know your customer guidelines. According to KYC, the bank demands address proof and identity proof from the public when they open accounts with the bank. For address proof, copes of ration card, voter ID card, AATHAAR card, telephone bill etc. are obtained. For identity proof, copies of identity card issued by the employers, voter ID card, driving licence, AATHAAR card etc. are obtained by the bankers. 54. What do you know by term deposits? – Fixed deposits, recurring deposits and reinvestment deposits are called as term deposits since these deposits are opened for specific period. The minimum period for which the term deposit is opened – 7 days and the maximum period: 10 years. Interest is paid according to the period of deposit. Interest is decided by the respective banks only. 55. What do you know by fixed deposit? – Fixed deposits are opened for a minimum period of seven days and maximum period of ten years. Interest is paid according to the period of deposit. In this scheme, a lump sum amount is deposited for a fixed period and interest earned is
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obtained from the bank on quarterly basis. In case the customer demands, interest is paid by the bank on monthly or fortnightly basis. 56. What do you mean by recurring deposit? – According to this scheme, the customer can remit monthly or quarterly a fixed amount for a fixed period. For example, an amount of Rs. 1000/- can be deposited for 60 months and interest is paid to the depositor according to the period of deposit along with the principal amount on maturity of deposit. 57. What do you know by reinvestment deposit? – Reinvestment scheme is nothing but fixed deposit. Instead of getting the interest on fixed amount on monthly or quarterly basis, the customer can get the interest on maturity along with principal amount. Since interest is reinvested, the customer is eligible to get interest for interest also. 58. What do you know by PAN number? – PAN number is required for IT purposes and when more than Rs. 50000/- is invested in time deposit accounts or remitted in current or savings deposit accounts, the customer has to mention the PAN number in the remittance slips. 59. Whether deposits can be opened in the name of minor? – Yes, deposits can be opened in the name of minors. The accounts are opened in the name of minor duly represented by father and mother and they are called as natural guardians. When the minor is a student and aged more than ten years, he can operate the account himself. For this purpose, he should produce a certificate from the headmaster or principal of the school where he is studying. 60. Whether minor is eligible for loans – Loans should not be granted to minors as per law and as per law the loans granted to the minors cannot be demanded by legally. 61. What do you know by PIN number? – PIN number is a four digit number used when the customer operates automated teller machines. The PIN number consists of four digits and instead of PIN number, thumb impressions are recorded in biometric ATMs 62. What do you know by bank nationalization? – As much as fourteen banks owned by private entrepreneurs were nationalized on 19.7.1969 so that they can meet social obligations. During the second phase, six banks were nationalized on 15.4.1980. New Bank of India got merged with Punjab National Bank and as at present there are twenty public sector banks including IDBI bank. 63. What do you know by foreign bank? – Foreign banks have their headquarters in a foreign country; however, they have branches in India as permitted by Reserve Bank of India. https://www.facebook.com/groups/BANKPOANDCLERK
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64. What do you know private sector banks? – At present there are fourteen old private sector banks in our country and seven new private sector banks namely; Axis bank Limited, Development Credit Bank Limited, HDFC Bank Limited, ICICI Bank Limited, Indus Ind bank Limited, Kotak Mahindra Bank Limited and Yes bank Limited. According to the revised norms fixed by Reserve Bank of India, the new private sector banks should have a minimum capital base of Rs. 200 crore. 65. What do you know by central bank? Central bank is the bank which governs other banks in the country. In our country RBI is the central bank. It has its headquarters at Mumbai and the following are the functions of RBI namely – currency note issue, banker to the banks, financial adviser to the government, custodian of cash reserves of banks, lender of the last resort and controller of credits etc. 66. What do you know by issue of currency notes in the country? In our country, up to one rupee note and coins, Government of India undertakes to issue and currency notes coins valuing more than one rupee are issued by Reserve Bank of India. 67. What do you know by scheduled commercial banks? – The public sector banks, SBI and its subsidiaries, all private sector banks, foreign banks and Regional Rural Banks are called as scheduled commercial banks. They should have been included in the second schedule of RBI act 1934; got licence for conducting banking business as per Banking Regulation act, 1949 and should have been incorporated either as per companies act or cooperative act. 68. What do you know by commercial banks? – Commercial banks are banks which function for profit and the following banks are included under the category of commercial banks by RBI – State Bank and its subsidiaries, all nationalized banks including IDBI bank, all private sector banks and foreign banks. The cooperative banks and regional rural banks are not treated as commercial banks. 69. What do you know by cheque book? Cheque books are issued when the customer is having current account, savings deposit account or overdraft account. Cheque books are issued for the purpose of withdrawal of money from the account. Cheques are not issued in the case of term deposits namely; fixed deposit, reinvestment deposit and recurring deposit. In the case of term deposits, the customers are issued with deposit receipts mentioning therein the details of deposits. 70. What do you know by minimum balance? – When a customer is maintaining current account and savings account, he should maintain https://www.facebook.com/groups/BANKPOANDCLERK
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minimum balance in the account. The minimum balance is prescribed by the respective banks. When the amount falls below the minimum balance during any day, penal charges are levied in the account. 71. What do you know by automated teller machines? – Automated Teller Machines are used for the purpose of allowing the customer to withdraw money twenty four hours a day using ATMs. The following services are available through automated teller machines namely – cash withdrawal, balance enquiry, mini statement up to last ten entries, pin number change, mobile recharge, e-ticketing, transfer of funds etc. 72. What do you know by TDS? TDS is called as tax deducted at source. When a customer having a fixed deposit account or reinvestment deposit account earns interest amount more than Rs. 10000/- tax is deducted at source from the account according to income tax laws prevalent in the country. 73. What do you know by core banking solution? According to core banking solutions, all branches of the bank are interconnected through a common server and a customer can transact the business in his account from anywhere in the country. 74. What do you know by real time gross settlement? _ According to RTGS, a customer can send money more than Rs. 200000/- from his account to any other account of another person having his account with the branch of the same bank or any other bank. For example, a customer having an account with Canara Bank, Kellys branch at Chennai can transfer the amount to the account of his father with State Bank of India, Canning Street, Kolkatta. Banks charge normal service charges for the remittance facility. 75. What do you know by either or survivor? – When more than one individual opens an account it is called as a joint account. Since the account is opened jointly by more than one person, the account holders should specify the conditions for operation of the account to the banker. In the case of E or S account, anyone of the customers can operate the account individually. In the case of joint accounts, all accountholders should operate the accounts jointly. 76. What do you know safe deposit locker? – It is a facility provided by the bank for safekeeping the valuable articles. Lockers are available in different sizes and according to the size of the locker, charges are collected for the lockers. The lockers are operated by the locker holder and the banker and for this purpose, the customer is given one key
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pertaining to the locker and the banker is having the master key for the entire unit. 77. What do you know by nomination facility in the account? Nomination facility is available for deposit accounts namely; current account, savings account, fixed deposit, reinvestment deposit account and recurring deposit account. The customer nominates a person for the account to receive money on the death of the depositor. 78. What do you know by safe custody service? – According to the scheme for safe custody service, customers can safe keep their valuables with the banker for nominal service charges. The valuables are kept in sealed packets or bundles and handed over to the banker and the banker on receipt of the packet or bundle, furnishes a receipt and when the customer is in need of the packet or bundle, he has to produce the receipt to the banker. 79. What do you know by proprietorship account? When a customer maintains an account in his personal name, it is called as individual account and when he opens an account in the name of a firm owned by him, it is called as proprietorship account. For example, Balaji conducting a printing press can open an account in the name of Balaji Printing services and this is a proprietorship account opened for business purposes and Balaji is called as proprietor. 80. What do you know by partnership account? When more than one person joins together to conduct a business, it is called as a partnership firm and the partners invest the capital either equally or according to the terms as agreed between the partners. The rules and regulations of the business are recorded in partnership deed. The partnership deed can be registered or non registered. 81. What do you mean by crossing of the cheque? – When two parallel transverse lines are drawn on the face of the cheque, it is called as crossing. When two simple transverse lines are drawn, it is called as general crossing and when the name of a banker is mentioned between the two parallel lines, it is called as special crossing. 82. What is the purpose of crossing of the cheque? – Cheques are crossed so that they should be encashed through accounts only. This is to avoid fraudulent encashment of the cheques by miscreants. 83. What do you know by order cheque? Normally the cheques are payable to the person mentioned in the cheque or to the bearer. In the case of uncrossed bearer cheque, the person named in the cheque or any bearer can get payment of the cheque from the bank counter. When the https://www.facebook.com/groups/BANKPOANDCLERK
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words, ―bearer‖ are cancelled, the cheque is treated as order cheque and for encashing an order cheque, the customer has to prove his identity to the banker. 84. What do you know by shares? – For the purpose of building fixed capital, joint stock companies are authorized to issue shares to the public. Shares can be issued in the form of ordinary shares or preference shares. Ordinary shareholders are entitled to vote during the annual general body meeting and they do not have any predetermined dividend amounts and in the case of preference shareholders, they are paid dividend according to predetermined rates. 85. What do you know by Debentures ?: It is a sort of loan document. Those who advance loans to the company are called as debenture holders. Normally debentures are issued through initial public offer as in the case of shares. Predetermined rate of interest is paid to the debenture holder, whether the corporation earns profit or suffers loss. 86. What do you know by SEBI? It is the principal regulator in the capital market in the country – both the primary and secondary segments. It has also been conferred with the powers to regulate the mutual funds and venture capital funds in the country. 87. What do you know by call money? It is an important segment of the Indian Money Market. Under call money market, funds are transacted on overnight basis and under notice money market, funds are transacted for the period between 2 days and 14 days. Banks borrow in this market, in order to fill the gaps or temporary mismatches in funds; to meet the cash reserve ratio and statutory liquidity ratio and to meet sudden the demand for funds arising out of large outflows. Banks, primary dealers, development finance institutions, insurance companies and select mutual funds are participants in this market. 88. What do you mean by Treasury bill?: They are money market instruments to finance the short term requirements of the Government of India. There are different types of treasury bills based on the maturity period and utility of the issuance like, adhoc treasury bills, three months, six months and 12 months treasury bills etc. 89. What do you know by call money? – Call or notice money is an amount borrowed or lent on demand for a very short period. If the period is greater than one day and up to 14 days, it is called as notice money; otherwise the amount is known as call money. Cooperative banks, commercial banks and primary dealers are allowed to borrow and lend in this market for adjusting their cash reserve requirements. https://www.facebook.com/groups/BANKPOANDCLERK
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90. What do you know by certificate of deposits? – It is a negotiable short term promissory note in nature. It is issued at a discount to the face value, the discount rate being negotiated between the issuer and the investor. 91. What do you know by commercial paper? – Commercial papers are negotiable short term unsecured promissory notes with fixed maturities, issued by well rated organizations. These are generally sold on discount basis. Organisations can issue commercial papers either directly or through banks or merchant banks called as dealers. 92. What do you know by primary market? – Primary market deals with new securities – it can be otherwise called as new shares issued to the public. The new offerings by the companies are made through an initial public offer or rights issue of shares to the existing shareholders 93. What do you know by secondary market/stock market? – It is the market for buying and selling securities of the existing companies. Under this scheme, securities are traded and being initially offered to the public in the primary market and/or listed on the stock exchange. The secondary market dealings are done through the share brokers in the stock markets situated in various cities in the country. 94. What do you know by the term called as savings bank ? – It is a financial institution whose primary purpose is to accept savings deposits. It may also perform some other functions. These banks are much helpful for salaried people and low income groups. The deposits collected from customers are invested in bonds, securities etc. 95. What do you know by commercial banks? – It is an institution which accepts deposits, makes business loans and offers related services. The commercial banks also allow for a variety of deposit accounts, such as checking, savings and time deposits. Their main purpose is to make a profit. Commercial banks apart from acceptance of deposits and lending loans provide services like collection of cheques and bills of exchanges, remittance of money from one place to another place etc. 96. What do you know by industrial banks and development banks? – They are development banks engaged in promotion and development of industry. SIDBI is a development bank engaged in helping industries in getting loans from public sector and other banks. NABARD caters to the needs of agriculture and National Housing Bank is meant for helping housing development. EXIM bank helps for import and export development in the country.
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97. What do you know by indigenous banks? – Indigenous banks mean money lenders and sahukars. They collect deposits from the general public and grant loans to the needy persons out of their own funds as well from deposits. They are much popular in villages and small towns. 98. What are the different types of loans provided by banks? – Cash credits, overdrafts, loans and advances, discounting of the bill of exchange and investment in government securities are various loan facilities provided by any bank. Cash credits are loans granted against stock of goods. Overdrafts are clean loans granted in current accounts. The other loans are housing loans, educational loans, consumer loans, gold loans, other agricultural loans, industrial loans etc. . 99. What do you know by debit card?- They are cards issued by the banks on current and savings accounts. Using debit cards the customers can withdraw funds using automated teller machines or they can purchase goods through point of sale terminals situated at textile shops, petrol pumps, hotels and other outlets. The card can be also used for purchasing e-tickets, air tickets and many more. 100. What do you know by credit card? – Credit cards are post paid cards whereas the debit cards on the other hand is a prepaid card with some stored value. Every time, a person uses this card, the internet banking house gets money transferred to its account from the bank of the buyer.
POINTS BANKING AWARENESS – ABBREVIATIONS 01. 02. 03. 04. 05. 06.
AADHAAR card denotes – Unique Identity Number PSL – Priority sector lending NBFC – Non Banking Financial Company WPI – Wholesale price Index CPI – Consumer Price Index LAF – Liquidity adjustment facility
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07. 08. 09. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45.
NDTL – Net Demand and Time Liabilities UCB – Urban Cooperative Bank ECS – Electronic clearing service FSLRC – Financial Sector Legislative Reforms Commission UCIC – Unique Customer Identification Code AML – Anti Money Laundering CFT – Combatting of financial terrorism SME – Small and Medium Enterprises CDR – Corporate Debt Restructuring CDS –Credit Default Swaps IRS – Interest Rate Swaps QE3 –Quantitative Easing FII – Foreign Institutional Investors RRB – Regional Rural Banks PDC – Post Dated Cheques MSE – Micro and Small Enterprises DCCO – Date of commencement of commercial operations CRAR – Capital to Risk weighted assets ratio IBL – Inter bank liability GDS – Gold deposit scheme CAD – Current account deficit ECB – European Central Bank MFIN – Micro Finance Institutions Network IRDA – Insurance Regulatory Development Authority CRMPG – Counterparty Risk Management Policy Group HTM – Held to maturity SLR – Statutory Liquidity Ratio BC – Business correspondents BF – Business facilitators DSA – Direct selling agents DMA – Direct marketing agents DRA – Debt Recovery agents ELA – Emergency Liquidity assistance BOP – Balance of payments APBS – AADHAAR payment bridge system FDI – Foreign direct investment M3 – Money supply MSF – Marginal standing facility FFA – Forward freight agreements
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46. 47. 48. 49. 50.
AD – Authorised dealer BIS – Bank for international settlements BR act – Banking Regulation act MCX – Multi commodity exchange PSB – Public sector banks
POINTS 01. The Unit Trust of India came into existence in 1964 02. Infrastructure bonds are termed as financial assets 03. National savings certificates, Indra Vikas Patras, Kisan Vikas Patras are issued by Post office 04. Capital market is a market which deals with gilt edge securities 05. Regional Rural Banks fall within the supervisory purview of Reserve Bank of India 06. IRDA is called as Insurance Regulatory Development Authority 07. IRDA with its headquarters at Hyderabad is the regulatory authority for all insurance companies in India including the Life Insurance Corporation of India 08. Mutual Funds fall within the supervisory purview of SEBI 09. SEBI means – Securities and Exchange Board of India 10. Export-Import Bank do not fall within the category of development banks 11. Industrial Development Bank of India, Small Industries Development Bank of India and Industrial Investment Bank of India, State Finance Corporation are called as developments 12. The major financial instruments of corporate sector are shares, debentures, public deposits and loan from institutions 13. Financial institutions promote savings, mobilize savings and allocate savings among different users 14. The following are called primary securities – bills, bonds, shares and book debts 15. New currency is not an example of primary security 16. Indian Financial System comprises of scheduled commercial banks, non banking financial institutions, urban cooperative banks 17. The Bombay Stock Exchange was made functional as early as 1870 18. The Unit Trust of India came into existence in 1964 https://www.facebook.com/groups/BANKPOANDCLERK
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19. In July 1969, 14 commercial banks were nationalized 20. The government‘s share in any nationalized bank is 51% or more 21. New Private banks are being given licences since 1993 22. The gilt edged market refers to the market for government securities and semi government securities 23. First share market in India was established in Mumbai 24. Securities that have an original maturity that is greater than one year are traded in capital markets 25. The best known capital market securities are stocks and bonds 26. Securities that have an original maturity that is greater than one year are not traded in money markets 27. Stocks and bonds are not money market securities 28. The primary issuers of capital market securities include – the central and local governments and corporations 29. The characteristic of a capital market instrument are – liquidity, marketability, long maturity and liquidity premium 30. Treasury bill, negotiable certificate of deposit and commercial paper are capital market instruments 31. Treasury bills are financial instruments initially sold by the government to raise funds 32. Commercial Paper is a short term security issued by large and well known companies to raise funds 33. A corporate convertible bond gives the holder the right to exchange the bond for a specified number of the company‘s common shares 34. Treasury bond is not a money market instrument 35. Money lent for 15 days or more in inter bank market is called as term money 36. Money lent for one day is called as call money 37. Special interest rate on a fixed maturity security fixed at the time of issue is called as coupon rate 38. Lending of scheduled commercial banks, on a fortnightly average basis, should not exceed 25 percent of their capital fund 39. A short term credit investment created by a non financial firm and guaranteed by a bank to make payment is called as bankers acceptance market 40. Money market securities are short term in nature having low risk and very liquid
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41. Money market instruments are characterized by the following namely – they are usually sold in large denominations, have low default risk and mature in one year or less 42. In the term repo, the term of the loan is greater than 30 days 43. All commercial banks do not deal for their customers in the secondary market 44. Money markets are used extensively by businesses both to warehouse surplus funds and to raise short term funds 45. The single most influential participant in the US money market is the US treasury department 46. The money market in India consists of two sectors namely the organized and the unorganized sectors. 47. Indigenous banks do not fall under unorganized sector 48. Money lent for one day in the money market is known as call money 49. Money lent for more than one day but less than 15 days in the money market is known as notice money 50. Money lent for 15 days or more in inter-bank market is called as term money
POINTS 01. Government security that is a claim on the government and is a secure financial instrument which guarantees of both capital and interest is called as gilt edged security 02. Insurance companies operate in the call money market as lenders 03. As per prudential norms of RBI, lending of scheduled commercial banks on a fortnight average basis should not exceed 25 percent of their capital fund 04. The market for bankers acceptance which are out of trade transactions, both domestic and foreign is called as bankers acceptance market 05. An unsecured loan extended by one corporate to another is called as inter corporate deposits 06. Interest is calculated on actual/365 days basis in respect of the following products namely; call money, notice money and term money 07. Interest is not calculated on actual/365 days basis in respect of the following products namely; Government of India dated securities https://www.facebook.com/groups/BANKPOANDCLERK
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08. An Institution which accepts deposits, makes business loans, and offers related services is called as commercial bank 09. A bank which acts as a banker of other banks is called as central bank 10. The following are the functions of exchange banks – remitting money from one country to another country, discounting of foreign bills, buying and selling gold and silver and helping import and export trade 11. Consumer banks are usually found in United States of America and Germany 12. A bank account in which a depositor can deposit his funds any number of times he likes and can also withdraw the same any number of times he wishes is called as current account 13. In Recurring deposit account, a specified amount is deposited every month for a specific period, say 12, 24, 36 or 60 months 14. An Inter bank funds transfer system, where funds are transferred as and when the transactions are triggered is called as real time gross settlement 15. Accepting deposits is the primary function of any bank 16. Collection and payment of cheques, rent, interest etc on behalf of their customers is the secondary function of any bank 17. Buying, Selling and keeping in safe custody, the securities on behalf of their customers are called as the secondary functions 18. Acting as trustees and executors of the property of their customers on their advice – the secondary functions of the bank 19. Remitting money from one place to the other through bank drafts or mail – the secondary functions of the bank 20. The operative guidelines for banks on mobile banking transactions in India were issued in 2008 21. To use smart cards/debit cards/credit cards for the purchase of an item or for payment of a service at a merchant‘s store, the card has to be swiped in a terminal known as point of sale terminal 22. The branding line of Bank of Baroda is - India‘s International Bank 23. The logo of Bank of Baroda is known as Baroda sun 24. Lot of banks in India these days are offering M-banking facility to their customers. The full form of M in M-banking is Mobile 25. State cooperative banks do not form part of the scheduled banking structure in India https://www.facebook.com/groups/BANKPOANDCLERK
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26. Section 14 of Banking Regulations act, 1949 prohibits a banking company from creating a charge upon any unpaid capital of the company 27. A bank is under a statutory obligation to honour the customer‘s cheques vide section 31 of the Negotiable Instruments act 1881 28. Nationalised banks have been permitted to offer their equity shares to the public to the extent of 49 percent of their capital as per amendments made in 1994 in – Banking companies (acquisition and transfer of undertakings) act, 1970 29. Five banks are at present associates of State Bank of India 30. At present there are twenty nationalized banks in the country 31. The number of foreign banks operating in India are – 32 32. BCSBI stands for Banking Codes and Standards Boards of India 33. The main function of a commercial bank can be segregated into – payment system, financial intermediation and financial services 34. Reserve Bank of India prescribed that all scheduled commercial banks should maintain their SLRs in dated securities noted by RBI; Tbills of Government of India and State Development loans 35. In case a depositor wishes to withdraw his deposits prematurely, banks charge a penalty and allow the same 36. The percentage of India‘s population lives in rural areas – 65% to less than 70% 37. In case a depositor is a sole proprietor and holds deposits in the name of the proprietory concern as well as in the individual capacity, the maximum insurance cover is available upto Rs. 100000.00 38. Banks give contracts to third parties in order to manage support services like help desk support, credit card processing and call support service 39. In case of FCNR – B scheme, the period for fixed deposits is – for terms not less than one year and not more than five years 40. The past due debt collection policy of banks generally emphasizes on – respect to customers, appropriate letter authorizing agents to collect recovery, due notice to customers. 41. According to the risk diversification principle of bank lending, diversification should be in terms of customer base, geographic location, nature of location etc 42. The aspects which are outlined by the loan policy of a bank are – rating standards, lending procedures, financial covenants etc., 43. The paid up capital of non scheduled bank is less than Rs. 5 lakhs https://www.facebook.com/groups/BANKPOANDCLERK
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44. Scheduled bank means a bank – which is included in the second schedule to the RBI act, 1934 45. A foreign bank is one which is incorporated outside India 46. The Unit banking system is prevalent in United States of America 47. In terms of section 5(1) (e) of the Banking Regulations act, 1949, a banking company means any company which transacts the business of banking in India 48. Universal Banking is one which undertakes the functions of a Development financial institution as well as a commercial bank 49. The commercial banking system in India consists of scheduled and non scheduled banks 50. EBT – stands for Electronic Benefit Transfer
POINTS 01. RBI generally reviews the monetary policy every three months on a quarterly basis 02. The rate at which Reserve Bank of India lends short term money to the banks is called as repo rate 03. The Reserve Bank of India was nationalized on 1.1.1949 04. RBI functions are governed by RBI act 1934 05. RBI is not expected to perform the function of accepting deposits from the general public 06. RBI functions as a banker to the government; accepts deposits from commercial banks and issues currencies 07. RBI has its headquarters at Mumbai 08. The first Governor of the Reserve Bank of India from 01.04.1935 to 30.06.1937 was Sir Osborne Smith 09. The 22nd current Governor of Reserve Bank of India is Y V Reddy 10. Prime lending rate is not decided by RBI 11. Prime lending rate is decided by the individual banks 12. RBI decides the following rates namely; Bank rate, repo rate, reverse repo rate and cash reserve ratio 13. RBI was set up on the recommendations of Hilton Young commission 14. RBI formulates implements and monitors the monetary policy 15. The central banking institution in India is Reserve Bank of India https://www.facebook.com/groups/BANKPOANDCLERK
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16. RBI had divested its stake in State Bank of India to IDBI bank 17. At present the RBI holds one percent of shareholding in National Bank for Agriculture and Rural Development Bank – NABARD 18. The number of regional offices of RBI is 23 19. In India RBI prescribes the minimum SLR level for scheduled commercial banks in India in specified assets as a percentage of bank‘s net demand and time liabilities 20. CRR refers to the share of liquid cash that rural banks have to maintain with RBI of their net demand and time liabilities 21. The functions of RBI are – acts as the currency authority; controls money supply and credit; manages foreign exchange and serves as a banker to the government 22. The quantitative instruments of RBI are – bank rate policy, cash reserve ratio and statutory liquidity ratio 23. The objective of monetary policy of RBI is to control inflation; discourage hoarding of commodities and encourage flow of credit into neglected sector 24. When RBI is lender of the last resort, it means that RBI advances credit against eligible securities 25. When RBI acts as a banker to the government, its functions are – keeping bank accounts of the government; carrying out government transactions and advising the government on all financial and monetary matters 26. Government of India decides the quantity of coins to be minted 27. The method which is used currently in India to issue currency note – minimum reserve system 28. An anna was equal to four paise 29. The first decimal issues of coins in 1950 in India consisted of 1,2,5 paise 30. RBI began production of notes in 1938, issuing Rs.2,5,10, 1000 notes. Rs. 500 note was reintroduced again in 1987 31. Rs. 1000 note was reintroduced again in 2000 32. Coins which were struck in with the hand picture are available since 2010 33. Under Britton Woods system, as a member of International Monetary Fund, India declared its par value of rupee in terms of gold 34. On September, 25, 1975, rupee was delinked from pound sterling and was linked to basket of currencies
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35. On March 1, 1992, RBI announced a new system of exchange rates known as partial convertibility and liberalized exchange rate system 36. In India, the fixed fiduciary system of note issue was in force from 1816 to 1920 37. During 1992, India adopted partial convertibility of rupee 38. All banks are authorized to accept soiled notes across their counters and pay the exchange value 39. Banks are expected to offer this service even to non customers 40. All public sector bank branches and currency chest branches of private sector banks are authorized to adjudicate and pay value in respect of mutilated notes 41. RBI has also authorized all commercial bank branches to treat certain notes in two pieces as soiled notes and pay exchange value 42. At present there are over 4000 currency chests in the country 43. Indo_Greeks were the first rulers in India to issue coins which can be definitely attributed to the kings 44. Section 22 of RBI act 1934 gives sole power to RBI to issue currency notes 45. For issuing notes, RBI is required to hold the minimum reserves of Rs. 200 crore of which note less than Rs. 115 crore is to be held in gold 46. The decimal system of note and coin issue was started in the country in 1957 47. The objectives of financial sector reforms in the country are – creating an efficient, productive and profitable financial sector industry; preparing the financial system for increasing international competition; opening the external sector in a calibrated fashion; promoting the maintenance of financial stability even in the face of domestic and external environments 48. The Narasimhan Committee-I was set in 1991 49. The Narasimhan Committee-I was set up to suggest some recommendations for improvement in the efficiency and productivity of the financial institution 50. The Narasimhan Committee-II was set up to suggest some recommendations for improvement in the banking reform process
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POINTS 01. Narasimhan Committee 1991 has given the following recommendations namely – reduction in SLR and CRR; phasing out directed credit program; the determination of the interest rate should be on the grounds of market forces such as the demand for and the supply of fund; the actual numbers of public sector banks need to be reduced 02. According to narrow banking concept, weak banks will be allowed to place their funds only in short term and risk free assets 03. The following are the recommendations of Narasimhan Committee report 1998 – reduction in CRR and SLR; deregulation of interest rate, fixing prudential norms and capital adequacy norms 04. Basel I which was issued during 1988 focuses on the capital adequacy of financial institutions 05. Capital to risk assets ratio CRAR of all the scheduled commercial banks under Basel I framework improved to 13.6 percent by the end of March, 2010 06. In 1991, the statutory liquidity ratio was as high as 38.5% 07. Narasimhan committee recommended to reduce SLR and CRR to 25 % and 3.5% respectively 08. The following guidelines were issued by RBI in January 1993 for the entry of private sector banks in the wake of Narasimhan Committee recommendations – The new bank upon being granted licence under the banking regulation act by RBI shall be registered as a public limited company under the companies act, 1956; Its inclusion in the second schedule to the RBI act, 1934 shall be subject to RBI‘s decision; Preference would be given to those banks the headquarters of which are proposed to be located in the center which does not have the headquarters of any other bank 09. The RBI has prescribed that new private sector bank – shall be subject to prudential norms in regard to income recognition, asset classification and provisioning, capital adequacy ratio etc; shall have to observe priority sector lending targets as applicable to other domestic banks and will be required to open rural and semi urban branches also as may be laid down by RBI 10. To create a strong and competitive banking system, reform measures were initiated in early 1990s and the thrust of these reforms was on – increasing the operation efficiency; developing technological https://www.facebook.com/groups/BANKPOANDCLERK
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supervision over banks and developing technological and institutional infrastructure 11. Financial inclusion makes people to access financial markets 12. The following steps are taken for financial inclusion in the country – the expansion of network of cooperative banks to provide credit to agriculture and saving facilities in rural areas; nationalization of banks in 1969 and expansion of branches; creation of an elaborate framework of priority sector lending with mandated targets as part of a strategy to meet the savings and credit needs of large sections of the Indian population who had no access to institutional finance 13. The following sections of people are covered under financial inclusion – marginal farmers, landless labourers, self employed and unorganized sector enterprises and urban dwellers 14. Mangalam village situated in the Union territory of Puducherry became the first village in India where all households were provided with banking facilities 15. The objectives of forming self help group is – to build mutual trust and confidence between the bankers and the rural people; to encourage banking activities, both on the thrift as well as credit sides, in a segment of the population that the formal financial institutions usually find difficult to cover and to meet the needs of the poor by combining the flexibility, sensitivity and responsiveness of the informal credit system with the strength of technical and administrative capabilities and financial resources of the formal credit institutions 16. The best alternative banking service to branch banking to be the part of financial inclusion – establishment of small branches; setting up of automated teller machines; issuing of ATM cards, giving credit cards and mobile banking 17. National credit fund for women is the most prominent national level micro finance apex organization providing micro credit services for women in the country 18. Banks provide the lowest lending in the North-eastern part of India 19. No frills accounts are certainly an effort in the direction of financial inclusion 20. The financial assistance or loans of Rs. 10000 by a bank to a small borrower will be called as micro finance 21. The Rashtriya Mahila Kosh is working exclusively for poor women 22. SHG bank linkage programme was initially launched by NABARD https://www.facebook.com/groups/BANKPOANDCLERK
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23. The recent initiatives for financial inclusion in India include – no frill account for retail purpose; simplified KYC (Know your customer); credit counseling centre facilities and extension of smart cards 24. Strong competition between numerous microcredit programs to reduce interest rates is not innovation likely to explain the high repayment rates of microcredit programs 25. Group lending using social sanctions instead of collateral foreclosure is not a potential limit of group lending 26. Collaterals is not a mechanism that contributes to the success of micro credits 27. The index of financial inclusion has been launched for the first time in 2008 by ICRIER 28. Regional Rural banks were established in the country on the recommendations of Narasimhan committee 29. Regional Rural banks were set up during 1975 30. The total authorized capital of Regional Rural Banks was originally fixed at Rs. 1 crore which has since been raised to Rs. 5 crore 31. At present, the formula for subscription to Regional Rural Banks capital has been fixed at – central government 60%; state government 20% and sponsor bank 20% 32. Central Government‘s contribution towards the capital of Regional Rural Bank is made through NABARD 33. The sponsor bank helps and aids the Regional Rural Bank sponsored by it by – subscribing to its share capital; training its personnel; providing managerial and financial assistance during the first five years or extended period 34. The sponsor banks are empowered to – monitor the progress of Regional Rural Banks; to conduct inspection and internal audit; to suggest corrective measures 35. As on March, 2011, the total number of Regional Rural Banks in the country are – 82 36. Each of the Regional Rural Banks covers districts ranging from 3 to 25 37. The main resources of Regional Rural Banks are – share capital, deposits from the public, borrowing from sponsor banks, refinance from NABARD 38. Regional Rural Banks are refinanced at 2 percent below the bank rate
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39. Regional Rural Banks are owned by central government, state government, sponsor bank and jointly by all of the above 40. With a view to improve the performance of the Regional Rural Banks and giving more powers and flexibility to their boards in decision making RBI had constituted task force on empowering the RRB boards for operational efficiency. The task force was headed by – K.G. Karmakar. 41. The number of directors on the boards of Regional Rural Banks has been raised to 15 42. Regional rural banks are classified under scheduled commercial banks 43. The paid up share capital of Regional Rural Bank is contributed by state government only 44. Regional Rural Banks are empowered to transact the business of banking as defined under Banking Regulation act, 1949 45. Regional Rural Banks are managed by the board of directors 46. The deposits with Regional Rural Banks are insured by DICGC 47. DICGC – Deposit Insurance and Credit Guarantee Corporation 48. For the purpose of Income tax act, 1961, the Regional Rural Banks are treated as – cooperative banks 49. On the current account balances maintained by the Regional Rural Banks with them, the commercial banks may pay interest as applicable to savings accounts 50. By virtue of the amendment carried out by the Regional Rural Bank (Amendment) act, 1987, the chairman of a Regional Rural Bank is to be appointed by sponsor bank in consultation with NABARD
POINTS 101. What do you know by stale cheque?- When the cheque becomes out of date and cannot be encashed, it is termed as stale cheque. For example, the validity period of any cheque is three months and when a cheque dated: 10.01.2012 is presented for payment on 10.01.2013, it is considered as a stale cheque, since the cheque is more than three months old. 102. What do you mean by post dated cheque?- When the date of the cheque is beyond the date on which the cheque is presented for payment, the cheque is considered to be post dated. For example, when https://www.facebook.com/groups/BANKPOANDCLERK
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a cheque dated: 10.02.2013 is presented for payment on 10.01.2013, it is considered to be a post dated cheque. 103. What do you know by current chest? – Currency chests are operated by RBI so that they can provide good quality currency notes to the public. However, RBI has appointed commercial banks to open and monitor currency chests on behalf of RBI. The cash kept in currency chests is considered to be kept in RBI and 104. What is meant by minimum balance to be maintained in the accounts? In the case of savings bank and current account deposits, the banks stipulates a minimum balance to be maintained. The minimum balance varies from bank to bank and when the balance in the account falls below the minimum balance then banks debit the account with some penal charges. Some banks insist quarterly average minimum balance to be maintained instead of regular minimum balance to be maintained. 105. What do you mean by tax deduction at source? TDS means tax deducted at source. Banks must deduct tax from the interest paid on the fixed deposit when the interest paid on fixed deposits to a customer exceeds Rs. 10000/- during the accounting year. TDS is applicable to fixed deposits only and is applicable to savings bank deposits. 106. What do you mean hindu undivided family? – HUF means Hindu Univided family and it is the legal entity duly recognized by the laws in India. The account of hindu undivided family is operated by Karta and karta is the senior most male member in the family. The remaining members in the family are called as coparceners. Banks can open deposit accounts and also extend loan facilities to hindu undivided family. 107. What do you know by MICR? – MICR means magnetic ink character recognition. Nowadays, the cheques are issued in MICR formats in metropolitan centres namely; Mumbai, Chennai, Kokatta, Bangalore etc. The micr code is readable by a reader sorter computer which helps in quick sorting of the cheques towards immediate adjustment of the amount to be received and paid by the banks in the clearing house. MICR code consists of the following namely; the cheque number, name of the city, name of the bank, name of the branch, account category etc. and banks simply type the amount of the cheque in the MICR portion using scanners so that the sorter reader is able to read the entire information in regard to the cheque instantaneously. 108. What do you mean by cheque truncation? – Under cheque truncation, the physical cheque is replaced by the digital image of the cheque after scanning. Once the cheque is truncated the physical cheque https://www.facebook.com/groups/BANKPOANDCLERK
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is cancelled and from the moment of truncation only the digital image has life. The digital image of the cheque which contains the digital signature of a bank officer as to its authenticity is processed by all banks and payment is effected. Cheque truncation helps in quick processing of the cheques drawn even on far away places since there is no necessity to physically move the cheque from one place to another place. 109. What do you mean by ECS?- ECS means electronic clearing service and this facility is used where a large number of small value payments or receipts are to be made or received. ECS can be used for either debit transactions or credit transactions. When a company wants to pay dividends to large number of shareholders, they use ECS credit facility and by debiting the company‘s account, the shareholders accounts are credited with the dividend amount instantaneously. Similarly when an accountholder can use ECS debit facility towards effecting payment to telephone charges each month. 110. What do you mean by bankassurance? Hitherto banks were dealing with acceptance of deposits and lending loans to the customers apart from undertaking certain ancillary services. Nowadays banks started selling insurance policies of prominent insurance companies by having tie up arrangements with such companies and banks earn commission for such transactions. 111. What do you mean by Universal banking? – Universal banking is the concept under which banks can provide various types of services namely; deposits, loans, safe deposit lockers, safe custody services, dealing with mutual fund schemes, selling insurance policies, selling gold coins, dealing with issue of shares and debentures etc. Thus at present banks are becoming like a supermarket for all kinds of financial products and such concept is called as universal banking. 112. What do you mean by Regional Rural Banks? – The Regional Rural Banks are relatively new banking institutions which were added to the Indian banking scene since October, 1975. The distinctive feature of a rural bank is that though it is a separate body corporate with perpetual succession and common seal, it is very closely linked with the commercial bank which has sponsored the proposal to establish it. 113. What do you mean by National Housing Bank?- National Housing Bank was established under the National Housing Bank act, 1987 as an apex body and the key function of National Housing Bank is the development of the housing sector and it is a wholly owned subsidiary of Reserve Bank of India. National Housing Bank undertakes the following https://www.facebook.com/groups/BANKPOANDCLERK
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activities namely; promotion and development of housing finance companies; regulation and supervision of housing finance companies and providing both direct finance and indirect finance to housing sector. 114. What do you mean by NABARD? – National Bank for agriculture and rural development was set up in 1982 as an apex development bank in the field of agricultural finance and rural development. NABARD is set up by the Government for the purpose of facilitating credit flow for promotion and development agriculture and integrated rural development. It covers supporting all other allied economic activities in rural areas, promoting sustainable rural development and ushering in prosperity in the rural areas 115. What do you mean by EXIM Bank? – Export and Import Bank of India was set up during the year, 1982 for the purpose of financing, promoting and facilitating foreign trade in the country. It is wholly owned by the Government of India. The bank apart from enhancing exports from the country, integrates the country‘s foreign trade and investment with the overall economic growth. 116. What do you mean by SIDBI? – SIDBI was established for the purpose of assisting and promoting small scale industry. It was established on 2.4.1990. It is the principal financial institution established for the promotion, financing and development of industry in the small scale sector and to coordinate the functions of the institutions engaged in the promotion and financing or developing industry in the small scale sector. 117. What do you mean by NBFCs? – Non Banking Finance Companies provide finance for small ventures but at the same time they are more customer oriented and operate at low volumes compared to the banks. They also collect deposits from customers and offer slightly higher interest rates on deposits compared to the banks. 118. What do you mean NEFT and RTGS – The two options namely – national electronic funds transfer and RTGS – real time gross settlement offered by Reserve Bank of India allow electronic transfer of funds from the remitter who has an account in one bank to the beneficiary who has account in any other bank/branch. The transfer can be carried out using the internet banking facility. The minimum amount that can be transferred by RTGS is Rs. 2.00 lakh and there is no such limit for transfer through NEFT. It is settled in batches at times defined by the Reserve Bank of India. RTGS transactions are settled continuously as and when they are put through. The transfer of funds through NEFT and RTGS https://www.facebook.com/groups/BANKPOANDCLERK
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can also be carried out by submitting the remittance form at the remitter‘s bank branch. 119. What do you mean IFSC code? – IFSC means Indian financial system code. It is a eleven digit code to identify the bank branch. IFSC code is used while transferring the funds using RTGS and NEFT payments. 120. What do you mean by financial inclusion? In spite of vast growth in the banking system, a large number of poor people are still not served by any bank. They are living outside the purview of any bank. Financial inclusion is delivery of financial services at an affordable cost to the vast population of disadvantaged/low incomes sections of the society 121. What do you mean No frill accounts? No frill accounts are accounts with very low or nil minimum balance as well as charges to be opened by the banks as targeted by Reserve Bank of India. KYC norms are relaxed for opening no frill accounts so that people living in rural and semi urban areas can open the accounts conveniently. Overdrafts upto Rs. 25000.00 are allowed in the no frill accounts 122. What do you mean by narrow banking? – It is the system of banking under which the bank accepts deposits from the public and places the funds accepted in 100 percent risk free assets with maturity matching for its liabilities. The bank takes no risk of lending at all. 123. Who are business facilitators and business correspondents? – RBI has permitted the banks to use the services of business facilitators and correspondents with effect from 2006. The services of non governmental officers, microfinance institutions and civil society organizations can be utilized by the banks. They help the banks in identifying the borrowers processing their applications etc. without involving in business transactions. No approval of RBI is necessary. Correspondents will do all the above and will also participate in business transactions in a small way. 124. What do you mean by non performing assets? – Non performing assets means bad loans. When the principal and interest in the account becomes overdue for more than 90 days, it is treated as non performing assets. Non performance assets are classified into sub standard assets, doubtful assets and loss assets. Banks are willing to keep the level of non performance accounts at the lowest. 125. What are the major risks faced by banks according to Basel II norms? – Banks are facing credit risk, market risk and operational risk. When the bank lends an advance, it faces credit risk and sometimes the banks may not be able to recover the loan amount from the borrowers. In https://www.facebook.com/groups/BANKPOANDCLERK
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the case of failure of any bank product, the banks face market risk and operational risk occurs on account of failure of systems available in the bank branches namely; staff unrest; striking employees; computer failure; automated teller machines out of order etc. 126. What do you mean by merchant banking? – Merchant banking stands for provision of various services to corporate clients by helping them to access capital market. Merchant banks help the corporate customers to approach the capital market with initial public offers for the purpose of collection of capital by way of shares. 127. What do you mean by demat accounts? Demat means dematerialization. During the early days, shares and debentures certificates were issued in physical form in the form of certificates. At present, they are issued in electronic form. It is the process by which paper securities are converted to electronic form so that they can be stored, sold and transferred easily. 128. What is a depository? – A depository holds the securities of the investors in electronic form. In our country there are two depositories namely; NSDL – National Securities Depositories Limited promoted by National Stock Exchange and CDSL – Central Depository Services Limited promoted by Bombay Stock Exchange. 129. What do you know by consortium financing? When a corporate is in need of huge finance – say Rs. 200 crores and above, banks join together and extend the loan facilities by sharing the loan amount between themselves. This reduces the risk for each bank. The banks jointly process the application of the borrower and sanction the advance and this is called consortium lending. 130. What do you mean by repo rate? – It is the rate at which RBI lends short term funds to the commercial banks against securities. In order to temporarily expand the money supply, the central bank decreases repo rates enabling the banks to swap the government securities for cash. Repo is the abbreviation of Repurchase and to contract the money supply RBI increases the repo rates. 131. What do you mean reverse repo ? – The reverse repo rate is the interest rate that banks receive if they deposit money with the central bank. This reverse repo rate is always lower than the repo rate. Increases or decreases in the repo and reverse repo rate have an effect on the interest rate on banking products such as loans, mortgages and savings. 132. What do you mean by CRR? – CRR means Cash Reserve Ratio and as per the stipulations by Reserve Bank of India, all banks are in a position https://www.facebook.com/groups/BANKPOANDCLERK
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to maintain a certain percentage of their deposits (technically called as net demand and time liabilities) in their account with the RBI. CRR ranges from 5 percent to 15 percent. By increasing CRR by merely 0.25 percent, an amount of Rs. 15000 crores of liquid funds can be transferred from the commercial banks to the coffers of RBI. When CRR is reduced, the liquid funds are transferred from RBI to commercial banks. 133. What do you mean by SLR? – Statutory Liquidity Ratio refers to the stipulation by RBI that approximately 25 percent of the banks deposits is to be kept in the form of government securities, gold and cash. Primarily SLR refers to the amount invested by the banks in Government of India securities. RBI has the right to change the statutory liquidity ratio from time to time. On reduction of SLR, the availability of funds for the banks moves up and banks tend to more loans to the common public. In the case of increase in SLR, banks reduce bank lending. 134. What do you mean by PLR? – Prime lending rate is the rate at which commercial banks are willing to lend to their triple A rated No 1 borrowers. The lending rates by the bank for other borrowers whose credit worthiness is low will be more than prime lending rate. RBI has deregulated the lending rates that are to be charged by the banks for advance above Rs. 2 lakhs. 135. What do you mean by BPLR? – It is the rate at which commercial banks must charge to all their advances less than Rs. 2 lakhs. 136. Who is a non resident Indian? – Non resident Indian is the person who is the Indian citizen who is residing in abroad for more than 182 days and has gone for abroad for the purposes namely; business, studies and employment. 137. What are the different types of accounts that can be opened by Non Resident Indians? – Non resident ordinary account, Non resident External account, FCNR account and RFC account. 138. What are the different currencies in which FCNR accounts can be opened? – FCNR accounts can be opened in the following currencies namely; US dollar, pound sterling, Euro, Australian dollar, Japanese Yen and Canadian dollar. FCNR accounts can be opened for a minimum period of one year and maximum period of three years 139. What are the traditional functions of RBI? – The traditional functions of RBI are – issue of currency, forex management, export assistance, clearing house functions, change of currency, transfer of currency, publication of statistics and other information and training in banking. https://www.facebook.com/groups/BANKPOANDCLERK
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140. What are the developmental functions of RBI? – The developmental functions of RBI are – agriculture development, promotion of industrial finance, promotion of export through refinance, development of bill market, development and regulation of banking system. 141. What are the regulatory functions of RBI? – The regulatory functions of RBI are – qualitative credit control, bank rate, differential rate of interest, open market operations, Maintenance of CRR and SLR, direct action, credit authorization scheme and moral persuasion 142. What are the different types of financial institutions in our country? – The various financial institutions in our country are – RBI – Reserve Bank of India; SEBI – Securities and Exchange Board of India and IRDA – Insurance Regulatory and Development Authority of India. RBI monitors the various banks in the country; SEBI monitors and regulates capital markets and IRDA monitors the functions of insurance companies. 143. What are the different types of banks in our country? – In our country the following banks are available – savings banks; commercial banks; industrial banks; development banks; land development banks; indigenous banks; central bank; cooperative banks; exchange banks and consumer banks 144. What are the different types of secondary functions of any bank? – They are agency or representative functions; general utility services and social development functions. 145. What do you mean by agency or representative functions of any bank? – They are collection and payment of various items; purchase and sale of securities; trustee and executor; remitting money; purchase and sale of financial exchange; letter of references and other agency functions. 146. What are the general utility services offered by the banks? – They are locker facilities; business information; help in transportation of goods; acting as a referee; issuing of letters of credit; acting as underwriters; issue of traveler cheques; issue of gift cheques and dealing in merchant banking activities 147. What are the social development functions of a bank ? – They are capital formation; inducement to innovations; impact on the rate of interest; role on the development of rural sector; helping in pushing up the demand 148. Can you name some items which are covered under negotiable instruments act? – They are promissory notes, bills of exchanges; https://www.facebook.com/groups/BANKPOANDCLERK
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cheques, exchequer bills; circular notes; dividend warrants; share warrants; bearer debentures; bank notes and bank drafts 149. What do you mean by priority sector advance? – In order to boost development of agriculture and industries, Government of India has stipulated certain norms under which banks are in a position to allocate 40 percent of their advances exclusively to certain categories of borrowers called as priority sector advances. The following are classified into priority sector advances namely – retail traders, small business, professional and self employed; agriculture; small scale industries, self help groups, differential rate of interest and SC/ST beneficiaries 150. What do you mean by weaker sections? – The following categories are termed as weaker sections namely – small business enterprises; marginal farmers; artisans/village and cottage industries for whom loans are granted upto Rs. 50000.00; SGSY beneficiaries; SC/ST beneficiaries; DIR beneficiaries; SJSRY beneficiaries; SLRS; self help groups and people belonging to minority community.
COMMITTEES/PROGRAMMES/PLANNING COMMISSION 01.COMMITTEES
ON VARIOUS SECTORS OF INDIAN ECONOMY
01 02 03 04 05
A C SHAH BIMAN JALAN MALEGAM BIRLA KIRITH PARIKH
06 07 08 09
CHATURVEDI SR HASHIM ABHIJIT SEN C RANGARAJAN
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ABID HUSSAIN DAMADORAN KHANDELWAL PATIL V K SHARMA
NON BANKING FINANCIAL COMPANY MARKET INFRASTRUCTURE INSTRNMENTS FUNCTIONING OF MICRO FINANCE CORPORATE GOVERNANCE RATIONALISATION OF PETROLEUM PRODUCTS IMRPOVING NATIONAL HIGHWAYS URBAN POVERTY WHOLESALE PRICE INDEX SERVICES PRICES INDEX AND FINANCIAL INSTITUTION DEVELOPMENT OF CAPITAL MARKETS CUSTOMER SERVICE IN BANKS HUMAN RESOURCE IN COMMERCIAL BANKS CORPORATE DEBT CREDIT TO MARGINAL FARMERS
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15 16 17 18 19
SARANGI KHANNA DANTAWALA GADGIL THORAT
20
DEEPAK MOHANTY RAGHURAM RAJAN NARESH CHANDRA RAKESH MOHAN KAKODKAR PITRODA
21 22 23 24 25
NON PERFORMING ASSETS REGIONAL RURAL BANKS LEAD BANK SCHEME FINANCIAL INCLUSION DEREGULATION OF SMALL SAVING DEPOSIT RATES MONETARY SYSTEM IN INDIA FINANCIAL SECTOR REFORMS CIVIL AVIATION RAILWAYS RAIL SAFETY RAIL MODERNISATION
02.PLANNING
01 02 03 04 05 06 07 08 09 10
DR MANMOHAN SINGH MONTEK SINGH AHUWALIA SOUMITRA CHOUDHARY MIHIR SHAH K KASTURI RENGAN AMAN MAIRA ABHIJIT SEN SYEDA HAMEED NARENDRA JADHAV B K CHATURVEDI 03.FLAGSHIP
COMMISSION MEMBERS
CHAIRMAN DEPUTY CHAIRMAN MEMBER MEMBER MEMBER MEMBER MEMBER MEMBER MEMBER MEMBER
PROGRAMMES OF GOVERNMENT OF INDIA
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01 02 03
SSA NRHM ICDS
04 05
MDM NRDWP
06 07
TSP NSAP
08
MGNREGA
09 10
IAY RGGVY
11
JNNURM
12
BNY
SARVA SHIKSHA ABHIYAN NATIONAL RURAL HEALTH MISSION INTEGRATED CHILD DEVELOPMENT SCHEME MID DAY MEAL NATIONAL RURAL DRINKING WATER PROGRAMME TOTAL SANITATION PROGRAMME NATIONAL SOCIAL ASSISTANCE PROGRAMME MAHATMA GANDHI RURAL EMPLOYMENT GUARANTEE ACT INDIRA AWAS YOJANA RAJIV GANDHI VIDYUTIKARAN YOJANA JAWAHARLAL NEHRU NATIONAL URBAN RENEWAL MISSION BHARAT NIRMAN YOJANA
04.EMPLOYMENT,
01
EGSM
02
TRYSEM
03
IRDP
04
NREP
05
RLEGP
06 07 08 09 10
JRY NRY SUWE EAS SJSRY
2001 2005 1975 1995 2009
2006 1999 2005 2005
POVERTY, RURAL AND URBAN DEVELOPMENT PROGRAMMES
EMPLOYMENT GUARANTEE SCHEME OF MAHARASHTRA TRAINING RURAL YOUTH FOR SELF EMPLOYMENT INTEGRATED RURAL DEVELOPMENT PROGRAMME NATIONAL RURAL EMPLOYMENT PROGRAMME RURAL LANDLESS EMPLOYMENT GUARANTEE PROGRAMME JAWAHAR ROZGAR YOJANA NEHRU ROZGAR YOJANA SCHEME OF URBAN WAGE EMPLOYMENT EMPLOYMENT ASSURANCE SCHEME SWARNA JAYANTHI SHAHARI ROZGAR YOJANA
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1972 1979 1980 1980 1983 1989 1989 1990 1990 1997
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11
SJGSY
12
JPNRGY
13 14 15 16
PMGY SGRY FWP PMEGP
SWARNA JAYANTHI GRAM SWAROZGAR YOJANA JAI PRAKASH NARAYAN ROZGAR GUARANTEE YOJANA PRADHAN MANTRI GRAMODAYA YOJANA SAMPOORNA GRAMEEN ROZGAR YOJANA FOOD FOR WORK PROGRAMME PRIME MINISTER‘S EMPLOYMENT GENERATION PROGRAMME 05.RURAL
01 02
CDP NPRD
03
CAPART
04 05 06 07 08 09 10 11 12
DRDA PMGSY
13 14
VAAY MPLADP
15
AHIP
16
RAY
DPAP TSC NGP DDP IWDP
2002-2003 2000 2001 2001 2008
EMPLOYMENT PROGRAMMES
COMMUNITY DEVELOPMENT PROGRAMME NATIONAL FUND FOR RURAL DEVELOPMENT COUNCIL FOR ADVANCEMENT OF PEOPLE‘S ACTIONS AND RURAL TECHNOLOGY DISTRICT RURAL DEVELOPMENT AGENCY PRADHAN MANTRI GRAM SADAK YOJANA TWENTY POINT PROGRAMME DROUGHT PRONE AREAS PROGRAMME ANNAPURNA SCHEME TOTAL SANITATION CAMPAIGN NIRMAL GRAM PURASKAR DESERT DEVELOPMENT PROGRAMME INTEGRATED WASTELAND DEVELOPMENT PROGRAMME VALMIKI AMBEDKAR AWAS YOJANA MEMBER OF PARLIAMENT LOCAL AREA DEVELOPMENT PROGRAMME AFFORDABLE HOUSING IN PARTNERSHIP(PART OF JNNURM) RAJIV AWAS YOJANA
06.WOMEN
1999
EMPOWERMENT PROGRAMMES
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1952 1984 1986 1993 2000 1975 1973-1974 2000 1999 2003 1977-1978 1989-1990 2001 1993 2009 2010
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01
STEPW
02
RGSEAG
03 04
IGMSY
05 06 07
STEP
08
DWCRA
09 10 11 12
GBS NMEW
SUPPORT TO TRAINING AND EMPLOYMENT PROGRAMME FOR WOMEN RAJIV GANDHI SCHEME FOR EMPOWERMENT OF ADOLESCENT GIRLS RASHITRIYA MAHILA KOSH – NATIONAL CREDIT FUND FOR WOMEN INDIRA GANDHI MATRITVA SAHYOG YOJANA SWAYAM SIDDHA SWADHAR SUPP0RT TO TRAINING AND EMPLOYMENT PROGRAMME FOR WOMEN DEVELOPMENT OF WOMEN AND CHILDREN IN RURAL AREAS DHAN LAXMI UJJWALA GENDER BUDGETING SCHEME NATIONAL MISSION FOR EMPOWERMENT OF WOMEN
07.EDUCATION
01 02 03 04
05
01 02 03
NATIONAL PROGRAMME FOR EDUCATION OF GIRLS AT ELEMENTARY LEVEL KGBVS KASTURBA GANDHI BALIKA VIDYALAYAS IEDSS INCLUSIVE EDUCATION FOR THE DISABLED AT SECONDARY STAGE RMSA RASHTRIYA MADHYAMIK SHIKSHA SUCCESS ABHIYAAN OR SCHEME FOR UNIVERSALISATION OF ACCESS FOR SECONDARY EDUCATION SAAKSHAR BHARAT
NRHM JSY PMSSY
2010 1993
2001 1995 1986 1982 2008 2007 2004 2010
ORIENTED PROGRAMMES
NPEGEL
08.HEALTH
2003-2004
2003 2004 2009-2010 2009
2009
ORIENTED PROGRAMMES
NATIONAL RURAL HEALTH MISSION JANANI SURAKSHA YOJANA PRADHAN MANTRY SWASTHYA SURAKSHA YOJANA
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2005 2005 2010
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09.MAJOR
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15
BLACK REVOLUTION BLUE REVOLUTION BROWN REVOLUTION GOLDEN FIBRE REVOLUTION GREEN REVOLUTION GREY REVOLUTION PINK REVOLUTION RAINBOW REVOLUTION RED REVOLUTION ROUND REVOLUTION SILVER FIBER REVOLITION SILVER REVOLUTION WHITE REVOLUTION YELLOW REVOLUTION EVERGREEN REVOLUTION
AGRICULTURAL REVOLUTIONS PETROLEUM PRODUCTION FISH PRODUCTION LEATHER/NON CONVENTIONAL(INDIA)/COCOA PRODUCTION JUTE PRODUCTION FOODGRAIN/CEREALS, WHEAT ETC FERTILISER REVOLUTION ONION PRODUCTION/PHARMACEUTICAL/PRAWN PRODUCTION HOLISTIC DEVELOPMENT OF AGRICULTURE SECTOR MEAT AND TOMATO PRODUCTION POTATO REVOLUTION COTTON REVOLUTION EGG/POULTRY PRODUCTION MILK/DAIRY PRODUCTION OIL SEEDS PRODUCTION INCREASE IN PRODUCTIVITY AND PROSPERITY WITHOUT ECOLOGICAL HARM 10.NAVRATNAS
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01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
BHARAT ELECTRONICS LIMITED BHARAT HEAVY ELECTRICALS LIMITED BHARAT PETROLEUM CORPORATION LIMITED GAS AUTHORITY OF INDIA LIMITED HINDUSTAN AERONAUTICS LIMITED HINDUSTAN PETROLEUM CORPORATION LIMITED MAHANAGAR TELEPHONE NIGAM LIMITED NATIONAL ALUMINUM COMPANY LIMITED NATIONAL MINERAL DEVELOPMENT CORPORATION NEYVELI LIGNITE CORPORATION LIMITED OIL INDIA LIMITED POWER FINANCE CORPORATION LIMITED POWER GRID CORPORATION OF INDIA LIMITED RASHTRIYA ISPAT NIGAM LIMITED RURAL ELECTRIFICATION CORPORATION LIMITED SHIPPING CORPORATION OF INDIA LIMITED 11.FINANCE
FINANCE COMMISSION I II III IV V VI VII VIII IX X XI XII XIII
ESTD ON 1951 1956 1960 1964 1968 1972 1977 1983 1987 1992 1998 2003 2007 12
COMMISSION
CHAIRMAN K C NYOGI K SANTHANAM A K CHANDA P V RAJAMANNAR MAHAVEER TYAGI BRAHMANAND REDDY J M SHELIET Y B CHAVAN N K P SALVE K C PANT A M KHUSRO C RANGARAJAN VIJAY L KELKAR
. POPULATION TREND IN INDIA
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OPERATIONAL DURATION 1952-1957 1957-1962 1962-1966 1966-1969 1969-1974 1974-1979 1979-1984 1984-1989 1989-1995 1995-2000 2000-2005 2005-2010 2010-2015
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01 02 03 04 05
1891 TO 1921 TO 1951 TO 1981 TO YEAR 1921
1921 1951 1981 2011
PERIOD OF STAGNANT POPULATION PERIOD OF STEADY GROWTH PERIOD OF HIGH GROWTH PERIOD OF DECLINING RATE THE YEAR OF GREAT DIVIDE
There are two structures of taxes namely – direct tax and indirect tax Direct tax are – personal income tax, corporation tax, wealth tax, gift tax, land revenue, profession tax, stamp duty and registration charges, securities transaction tax, banking cash transaction tax Excise tax are – excise duty, custom duty, sales tax, service tax, value added tax, passenger tax, entertainment tax, electricity duty, motor vehicles tax Types of planning are – planning by direction, planning by inducement, financial planning, physical planning, perspective planning, indicative planning, imperative planning, rolling plan, core plan.
BUDGET TERMS 01. Appropriation bill is a bill that enables withdrawal of money from the consolidated fund to pay off expenses. These are instruments that Parliament clears after the demand for grants has been voted by the Lok Sabha 02. Bank credit includes loans, cash credit and overdrafts and inland bills and foreign bills purchased and discounted 03. Bill is a draft legislative proposal which becomes an act when passed by both houses of Parliament and assented to by the President 04. Budget deficit is a part of the fiscal deficit and it represents the borrowing requirement of the centre https://www.facebook.com/groups/BANKPOANDCLERK
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05. Budget estimates – The estimates of government spending on various sectors during the year plus income in the form of tax revenues 06. Capital revenues – Expenses incurred on acquisition of assets by the government 07. Capital receipts – Include loans raised by center from the market, government borrowings from Reserve Bank of India and proceeds from disinvestment 08. Consolidated fund – includes all revenues received by Government, loans raised and receipts from recoveries of loans granted by it. 09. Consumer Price Index – is a price index covering the prices of consumer goods 10. Contingency fund – is used by the government in emergencies to meet unforeseen expenditures, that cannot wait for Parliament authorization 11. Corporate tax – is levied on the profits of firms, as distinct from taxation of the incomes of their owners 12. Current account deficit – excess of expenditure over receip0ts on current account in a country‘s balance of payments 13. Current account surplus – excess or receipts over expenditure on current account in a country‘s balance of payments 14. Direct taxes – are levied on the consumers directly. These include income tax, corporate tax and capital gains tax 15. Disposable income – Income minus income tax. This is income available in your hands for expenditure 16. Disinvestment – The dilution or selling of the government stake (ownership) in public sector undertakings 17. Excise duties – are levied on items manufactured within the country and are paid by the manufacturers. 18. Finance bill- Government‘s plans for imposing new taxes, modifying of the existing tax structure or continuing the existing tax structure beyond the period approved by the Parliament 19. Fiscal deficit – difference between the revenue receipts and total expenditure 20. Foreign direct investment – is made in India by a company incorporated abroad, through a branch or a subsidiary company set up in India 21. Foreign Institutional Investor – an institution established outside India which proposes to invest in India https://www.facebook.com/groups/BANKPOANDCLERK
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22. GDP – Total market value of finished goods and services produced in the country in a given year 23. Gross National Product – GDP plus income of residents from investments made abroad minus income earned by foreigners in domestic market 24. Indirect taxes – are charged on goods produced, imported or exported in the country. These taxes include excise and customs duties 25. Inflation – Inflation rate is the percentage rate of change in the price level 26. National debt – Total outstanding borrowings of the central government exchequer 27. Peak rate – the higher rate of customs duty applicable on an item 28. Per capita income – the national income of a country, or region, divided by its population 29. Progressive tax structure – a tax structure in which the marginal tax rate increases as the level of income increases 30. Revenue expenditure – expenses incurred for functioning of government departments, interest on debt, subsidies etc 31. Revenue receipts – include tax and duties collected by government and interest and dividend on investments made by government 32. Revised estimates – difference between budget estimates and the actual figures pertaining to the economy 33. Sales tax – a tax levied at a percentage of retail sales 34. Vote on account – it is a sort of interim budget where the government presents accounts required to keep the machinery running until the next government takes over 35. Wholesale price index – Prices of goods that are dealt with wholesale (mostly inputs to production, rather than finished commodities)
UNION BUDGET HIGHLIGHTS Compliance of Public sector banks with Basel III regulations to be ensured; Rs. 14000 crore provided in BE 2013-2014 for infusing capital https://www.facebook.com/groups/BANKPOANDCLERK
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All branches of Public sector banks to have automated teller machines by 31.03.2014 Proposal to set up India‘s first women‘s bank as a public sector bank. Provision of Rs. 1000 crore as initial capital Foreign investment is imperative in view of the high current account deficit, FII, FDI and ECB are three main sources of CAD financing. Foreign investment that is consistent with our economic objectives to be encouraged Interest subvention scheme for short term crop loans to be continued; scheme extended for crop loans borrowed from private sector scheduled commercial banks Benefits or preferences enjoyed by MSME to continue upto three years after they grow out of this category Rs. 6000 crore to Rural Housing Fund in 2013-2014 National Housing Bank to set up Urban Housing Fund A multi pronged approach to increase the penetration of insurance, both life and general, in the country. Number of proposals finalized in consultation with Insurance Regulatory Development Authority such as empowering insurance companies to open branches in Tier II cities and below without prior approval of IRDA; KYC of banks to be sufficient to acquire insurance policies, banks to be permitted to act as insurance brokers, banking correspondent allowed to sell micro insurance products. Rashtriya Swasthya Bima Yojana to be extended to other categories such as rikshaw, auto rikshaw and taxi drivers, sanitation workers, rag pickers and mine workers A comprehensive social security package to be evolved for unorganized sector by facilitating convergence among different schemes; Rs. 2000 crore to be provided in the fund in 2013-2014 FIIs will be permitted to participate in the exchange traded currency derivate segment to the extent of their Indian rupee exposure in India FIIs will also be permitted to use their investment in corporate bonds and Government securities as collateral to meet their margin requirements Small and medium enterprises to be permitted to list on the SME exchange without being required to make an initial public offer An ambitious IT driven project to modernize the postal network at a cost of Rs. 4909 crore. Post offices to become part of the core banking solution and offer real time banking services. https://www.facebook.com/groups/BANKPOANDCLERK
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Reserve Bank of India issues final guidelines for new bank licences and the norms are as furnished below Eligible promoters: Companies, Non Banking Finance Companies and public sector entities Broking and real estate firms Promoters need to be financially sound with a track record of 10 years Positive feedback from other regulators and investigative agencies crucial Risk fenced structure: Promoters must set up banks through wholly owned non operative financial holding companies Holding company and bank not permitted to lend or invest in any entity belonging to the promoter group Shares of holding companies cannot be transferred to entities outside the promoter group Shareholding in the bank: Holding company to hold 40% stake in the bank for five years Holding company to reduce stake in the bank to 20 % in ten years, 15% in 12 years Foreign shareholding capped at 49% for five years Other conditions: At least 25 percent of new branches must be in unbanked rural centres At least 50 percent of the directors of holding company must be independent directors The bank‘s board must have a majority of independent directors Application process: Applications for banking licences need to be sent by July 1 RBI to issue in principle approval after considering the recommendations from a high level advisory committee The in principle approval will be valid for a year News in brief Syndicate Bank had tied up with Maruti Suzuki for financing cars under Syndvahan scheme IDBI Bank Limited had tied up with EXIM Bank to co finance, co arrange syndicate rupee and foreign currency loans; jointly finance https://www.facebook.com/groups/BANKPOANDCLERK
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export oriented projects in India; and provide and avail refinance facility in Indian rupees and foreign currency for extending short term export credit and long term Capex loans to eligible export oriented companies, particulars in the SME sector HDFC bank in association with Times Internet had a launched a credit card that will enable customers to enjoy discounts as high as 25% in restaurants and movie halls ICICI bank has tied up with Aircel and VISA to offer mobile banking service for its customers across the country. Mr T S Vijayan took over as the Chairman of the Insurance Regulatory and Development Authority What do you mean by Federal Discount Rate ?: The interest rate set by the Federal Reserve that is offered to eligible commercial banks or other depository institutions in an attempt to reduce liquidity problems and the pressures of reserve requirements The discount rate allows the federal reserve to control the supply of money and is used to assure stability in the financial markets. A decrease in the discount rate makes it cheaper for commercial banks to borrow money, which results in an increase in the supply of money in the economy Conversely, a raised discount rate will make it more expensive for the banks to borrow and would thereby decrease the money supply Funds borrowed from the fed are processed through the discount window and the rate is reviewed every 14 days What do you mean by Priority sector lending ?: Some areas or fields in a country depending on its economic condition or government interest are prioritized and are called priority sectors – i.e. industry, agriculture. Banks are directed by RBI that loans must be given on reduced interest rates with discounts to promote these fields It means lending to priority sector in such a way to ensure maximum credit flow to remotest and farthest person of the country by setting up a strong network and series of financial channels. The main objective of Priority sector lending is providing finance to all those sectors which are deprived of easy access to finance and credit. It also includes facilitation of growth via development of healthy financial system as well as high living standards of poor living below poverty line https://www.facebook.com/groups/BANKPOANDCLERK
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A Account Agreement: The contract governing your open-end credit account, it provides information on changes that may occur to the account. Account History: The payment history of an account over a specific period of time, including the number of times the account was past due or over limit. Account Holder: Any and all persons designated and authorized to transact business on behalf of an account. Each account holder's signature needs to be on file with the bank. The signature authorizes that person to conduct business on behalf of the account. Accrued Interest: Interest that has been earned but not yet paid. Acquiring Bank: In a merger, the bank that absorbs the bank acquired. Adjustable-Rate Mortgages (ARMS): Also known as variable-rate mortgages. The initial interest rate is usually below that of conventional fixed-rate loans. The interest rate may change over the life of the loan as market conditions change.
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There is typically a maximum (or ceiling) and a minimum (or floor) defined in the loan agreement. If interest rates rise, so does the loan payment. If interest rates fall, the loan payment may as well. Adverse Action: Under the Equal Credit Opportunity Act, a creditor's refusal to grant credit on the terms requested, termination of an existing account, or an unfavorable change in an existing account. Adverse Action Notice: The notice required by the Equal Credit Opportunity Act advising a credit applicant or existing debtor of the denial of their request for credit or advising of a change in terms considered unfavorable to the account holder. Affidavit: A sworn statement in writing before a proper official, such as a notary public. Alteration: Any change involving an erasure or rewriting in the date, amount, or payee of a check or other negotiable instrument. Amortization: The process of reducing debt through regular installment payments of principal and interest that will result in the payoff of a loan at its maturity. Annual Percentage Rate (APR): The cost of credit on a yearly basis, expressed as a percentage. Annual Percentage Yield (APY): A percentage rate reflecting the total amount of interest paid on a deposit account based on the interest rate and the frequency of compounding for a 365-day year. Annuity: A life insurance contract sold by insurance companies, brokers, and other financial institutions. It is usually sold as a retirement investment. An annuity is a long-term investment and can have steep surrender charges and penalties for withdrawal before the annuity's maturity date. (Annuities are not FDIC insured.) Application: Under the Equal Credit Opportunity Act (ECOA), an oral or written request for an extension of credit that is made in accordance with the procedures established by a creditor for the type of credit requested. https://www.facebook.com/groups/BANKPOANDCLERK
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Appraisal: The act of evaluating and setting the value of a specific piece of personal or real property. Authorization: The issuance of approval, by a credit card issuer, merchant, or other affiliate, to complete a credit card transaction. Automated Clearing House (ACH): A computerized facility used by member depository institutions to electronically combine, sort, and distribute inter-bank credits and debits. ACHs process electronic transfers of government securities and provided customer services, such as direct deposit of customers' salaries and government benefit payments (i.e., social security, welfare, and veterans' entitlements), and preauthorized transfers. Automated Teller Machine (ATM): A machine, activated by a magnetically encoded card or other medium, that can process a variety of banking transactions. These include accepting deposits and loan payments, providing withdrawals, and transferring funds between accounts. Automatically Protected: As of May 1, 2011, up to two months of Federal benefits such as Social Security benefits, Supplemental Security Income benefits, Veteran‘s benefits, Railroad Retirement benefits, and benefits from the Office of Personnel Management that are direct deposited to an account may be protected from garnishment. The amount automatically protected will depend upon the balance of the account on the day of review. Automatic Bill Payment: A checkless system for paying recurring bills with one authorization statement to a financial institution. For example, the customer would only have to provide one authorization form/letter/document to pay the cable bill each month. The necessary debits and credits are made through an Automated Clearing House (ACH). Availability Date: Bank's policy as to when funds deposited into an account will be available for withdrawal. Availability Policy: Bank's policy as to when funds deposited into an account will be available for withdrawal. https://www.facebook.com/groups/BANKPOANDCLERK
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Available Balance: The balance of an account less any hold, uncollected funds, and restrictions against the account. Available Credit: The difference between the credit limit assigned to a cardholder account and the present balance of the account. B Balance Transfer: The process of moving an outstanding balance from one credit card to another. This is usually done to obtain a lower interest rate on the outstanding balance. Transfers are sometimes subjected to a Balance Transfer Fee. Bank Custodian: A bank custodian is responsible for maintaining the safety of clients' assets held at one of the custodian's premises, a sub-custodian facility or an outside depository. Bank Examination: Examination of a bank's assets, income, and expenses-as well as operations by representatives of Federal and State bank supervisory authority-to ensure that the bank is solvent and is operating in conformity with banking laws and sound banking principles. Bank Statement: Periodically the bank provides a statement of a customer's deposit account. It shows all deposits made, all checks paid, and other debits posted during the period (usually one month), as well as the current balance. Banking Day: A business day during which an office of a bank is open to the public for substantially all of its banking functions. Bankrupt: A bankrupt person, firm, or corporation has insufficient assets to cover their debts. The debtor seeks relief through a court proceeding to work out a payment schedule or erase debts. In some cases, the debtor must surrender control of all assets to a courtappointed trustee. Bankruptcy: https://www.facebook.com/groups/BANKPOANDCLERK
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The legal proceedings by which the affairs of a bankrupt person are turned over to a trustee or receiver for administration under the bankruptcy laws. There are two types of bankruptcy: Involuntary bankruptcy-one or more creditors of an insolvent debtor file a petition having the debtor declared bankrupt. Voluntary bankruptcy-the debtor files a petition claiming inability to meet financial obligations and willingness to be declared bankrupt. Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Billing Cycle: The time interval between the dates on which regular periodic statements are issued. Billing Date: The month, date, and year when a periodic or monthly statement is generated. Calculations have been performed for appropriate finance charges, minimum payment due, and new balance. Billing Error: A charge that appears on a periodic statement associated with an extension of credit (e.g., credit card) that was not authorized by the cardholder or the cardholders' designee, is not properly identified, and was not accepted by the cardholder or the cardholder's designee. A billing error can also be caused by a creditor's failure to credit a payment or other credit to an account as well as accounting and clerical errors. Bond, U.S. Savings: Savings bonds are issued in face value denominations by the U.S. Government in denominations ranging from $50 to $10,000. They are typically long-term, low-risk investment tools. Business Day: Any day on which offices of a bank are open to the public for carrying on substantially all of the bank's business. C Canceled Check : A check that a bank has paid, charged to the account holder's account, and then endorsed. Once canceled, a check is no longer negotiable. https://www.facebook.com/groups/BANKPOANDCLERK
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Cashier's Check: A check drawn on the funds of the bank, not against the funds in a depositor's account. However, the depositor paid for the cashier's check with funds from their account. The primary benefit of a cashier's check is that the recipient of the check is assured that the funds are available. Cease and Desist Letter: A letter requesting that a company stops the activity mentioned in the letter. Certificate of Deposit: A negotiable instrument issued by a bank in exchange for funds, usually bearing interest, deposited with the bank. Certificate of Release: A certificate signed by a lender indicating that a mortgage has been fully paid and all debts satisfied. Certified Check: A personal check drawn by an individual that is certified (guaranteed) to be good. The face of the check bears the words "certified" or "accepted," and is signed by an official of the bank or thrift institution issuing the check. The signature signifies that the signature of the drawer is genuine, and sufficient funds are on deposit and earmarked for payment of the check. Charge-off: The balance on a credit obligation that a lender no longer expects to be repaid and writes off as a bad debt. Check: A written order instructing a financial institution to pay immediately on demand a specified amount of money from the check writer's account to the person named on the check or, if a specific person is not named, to whoever bears the check to the institution for payment. Check 21 Act: Check 21 is a Federal law that is designed to enable banks to handle more checks electronically, which is intended to make check processing faster and more efficient. Check 21 is the short name for the Check Clearing for the 21st Century Act, which went into effect on October 28, 2004. Check Truncation: https://www.facebook.com/groups/BANKPOANDCLERK
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The conversion of data on a check into an electronic image after a check enters the processing system. Check truncation eliminates the need to return canceled checks to customers. Checking Account: A demand deposit account subject to withdrawal of funds by check. ChexSystems: The ChexSystems, Inc. network is comprised of member financial institutions that regularly contribute information on mishandled checking and savings accounts to a central location. ChexSystems shares this information among member institutions to help them assess the risk of opening new accounts. ChexSystems only shares information with the member institutions; it does not decide on new account openings. Generally, information remains on ChexSystems for five years. Closed-End Credit : Generally, any credit sale agreement in which the amount advanced, plus any finance charges, is expected to be repaid in full by a specified date. Most real estate and automobile loans are closed-end agreements. Closed-End Loan: Generally, any loan in which the amount advanced, plus any finance charges, is expected to be repaid in full by a specified date. Most real estate and automobile loans are closed-end agreements. Closing a Mortgage Loan: The consummation of a contractual real estate transaction in which all appropriate documents are signed and the proceeds of the mortgage loan are then disbursed by the lender. Closing Costs: The expenses incurred by sellers and buyers in transferring ownership in real property. The costs of closing may include the origination fee, discount points, attorneys' fees, loan fees, title search and insurance, survey charge, recordation fees, and the credit report charge. Collateral: Assets that are offered to secure a loan or other credit. For example, if you get a real estate mortgage, the bank's collateral is typically your house. Collateral becomes subject to seizure on default. https://www.facebook.com/groups/BANKPOANDCLERK
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Collected Funds: Cash deposits or checks that have been presented for payment and for which payment has been received. Collection Agency: A company hired by a creditor to collect a debt that is owed. Creditors typically hire a collection agency only after they have made efforts to collect the debt themselves, usually through letters and telephone calls. Collection Items: Items-such as drafts, notes, and acceptances-received for collection and credited to a depositor's account after payment has been received. Collection items are usually subject to special instructions and may involve additional fees. Most banks impose a special fee, called a collection charge, for handling collection items. Collective Investment Funds (CIFs): A Collective Investment Fund (CIF) is a trust created and administered by a bank or trust company that commingles assets from multiple clients. The Federal securities laws generally require entities that pool securities to register those pooled vehicles (such as mutual funds) with the SEC. However, Congress created exemptions from these registration requirements for CIFs so long as the entity offering these funds is a bank or other authorized entity and so long as participation in the fund is restricted to only those customers covered by the exemption. If these limitations are met, CIFs are exempt from SEC registration and reporting requirements. Co-Maker: A person who signs a note to guarantee a loan made to another person and is jointly liable with the maker for repayment of the loan. (Also known as a Co-signer.) Community Reinvestment Act: The Act is intended to encourage depository institutions to help meet the credit needs of the communities in which they operate, including low- and moderate-income neighborhoods. It was enacted by the Congress in 1977. Consumer Credit Counseling Service: A service which specializes in working with consumers who are overextended with debts and need to make arrangements with creditors. Consumer Reporting Agency: An agency that regularly collects or evaluates individual consumer credit information or other information about consumers and sells consumer reports for a fee to creditors or https://www.facebook.com/groups/BANKPOANDCLERK
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others. Typical clients include banks, mortgage lenders, credit card companies, and other financing companies. Conventional Fixed Rate Mortgage: A fixed-rate mortgage offers you a set interest rate and payments that do not change throughout the life, or "term," of the loan. A conventional fixed-rate loan is fully paid off over a given number of years-usually 15, 20, or 30. A portion of each monthly payment goes towards paying back the money borrowed, the "principal"; the rest is "interest." Co-Signer: An individual who signs the note of another person as support for the credit of the primary signer and who becomes responsible for the obligation. (Also known as a Comaker.) Credit Application: A form to be completed by an applicant for a credit account, giving sufficient details (residence, employment, income, and existing debt) to allow the seller to establish the applicant's creditworthiness. Sometimes, an application fee is charged to cover the cost of loan processing. Credit Bureau: An agency that collects individual credit information and sells it for a fee to creditors so they can make a decision on granting loans. Typical clients include banks, mortgage lenders, credit card companies, and other financing companies. Also commonly referred to as a consumer reporting agency or a credit reporting agency. Credit Card Account Agreement: A written agreement that explains the terms and conditions of the account, credit usage and payment by the cardholder, and duties and responsibilities of the card issuer. Credit Card Issuer: Any financial institution that issues bank cards to those who apply for them. Credit Disability Insurance: A type of insurance, also known as accident and health insurance, that makes payments on the loan if you become ill or injured and cannot work. Credit Life Insurance: https://www.facebook.com/groups/BANKPOANDCLERK
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A type of life insurance that helps repay a loan if you should die before the loan is fully repaid. This is optional coverage. Credit Limit: The maximum amount of credit that is available on a credit card or other line of credit account. Credit Repair Organization: A person or organization that sells, provides, performs, or assists in improving a consumer's credit record, credit history or credit rating (or says that that they will do so) in exchange for a fee or other payment. It also includes a person or organization that provides advice or assistance about how to improve a consumer's credit record, credit history or credit rating. There are some important exceptions to this definition, including many non-profit organizations and the creditor that is owed the debt. Credit Report: A detailed report of an individual's credit history prepared by a credit bureau and used by a lender in determining a loan applicant's creditworthiness. Credit Score: A number, roughly between 300 and 800, that measures an individual's credit worthiness. The most well-known type of credit score is the FICO® score. This score represents the answer from a mathematical formula that assigns numerical values to various pieces of information in your credit report. Banks use a credit score to help determine whether you qualify for a particular credit card, loan, or service. Cut-Off Time: A time of day established by a bank for receipt of deposits. After the cut-off time, deposits are considered received on the next banking day. D Debit: A debit may be an account entry representing money you owe a lender or money that has been taken from your deposit account. Debit Card: A debit card allows the account owner to access their funds electronically. Debit cards may be used to obtain cash from automated teller machines or purchase goods or services using point-of-sale systems. The use of a debit card involves immediate debiting and crediting of consumers' accounts. https://www.facebook.com/groups/BANKPOANDCLERK
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Debt Collector: Any person who regularly collects debts owed to others. Debt Elimination Scheme: A debt elimination scheme is a plan that is advertised as a way for an individual to eliminate various types of debt simply by paying someone a small fee compared to the amount of debt to be eliminated. These schemes are fraudulent. As a result of using a fraudulent scheme, individuals will lose money, could lose property, will damage their credit rating, and possibly incur additional debt. In addition, a creditor may take legal action against an individual to resolve a fraudulent attempt to eliminate debt. It is also possible for the victim to have identify theft occur by participating in such a fraudulent scheme. Debtor: Someone who owes monies to another party. Debt-to-Income Ratio (DTI): The percentage of a consumer's monthly gross income that goes toward paying debts. Generally, the higher the ratio, the higher the perceived risk. Loans with higher risk are generally priced at a higher interest rate. Decedent: A deceased person, ordinarily used with respect to one who has died recently. Deferred Payment: A payment postponed until a future date. Delinquency: A debt that was not paid when due. Demand Deposit: A deposit of funds that can be withdrawn without any advance notice. Deposit Slip: An itemized memorandum of the cash and other funds that a customer presents to the bank for credit to his or her account. Derogatory Information: Data received by a creditor indicating that a credit applicant has not paid his or her accounts with other creditors according to the required terms. Direct Deposit: https://www.facebook.com/groups/BANKPOANDCLERK
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A payment that is electronically deposited into an individual's account at a depository institution. Direct Dispute: A dispute submitted directly to the furnisher about the accuracy of information in your consumer report that relates to an account or other relationship you have with the furnisher. Disclosures: Certain information that Federal and State laws require creditors to give to borrowers relative to the terms of the credit extended. Draft: A signed, written order by which one party (the drawer) instructs another party (the drawee) to pay a specified sum to a third party (the payee), at sight or at a specific date. Typical bank drafts are negotiable instruments and are similar in many ways to checks. Drawee: The person (or bank) who is expected to pay a check or draft when it is presented for payment. Drawee bank: The bank upon which a check is drawn. Drawer: The person who writes a check or draft instructing the drawee to pay someone else. E Electronic Banking: A service that allows an account holder to obtain account information and manage certain banking transactions through a personal computer via the financial institution's Web site on the Internet. (This is also known as Internet or online banking.) Electronic Check Conversion: Electronic check conversion is a process in which your check is used as a source of information-for the check number, your account number, and the number that identifies your financial institution. The information is then used to make a one-time electronic payment from your account-an electronic fund transfer. The check itself is not the method of payment. Electronic Funds Transfer (EFT): https://www.facebook.com/groups/BANKPOANDCLERK
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The transfer of money between accounts by consumer electronic systems-such as automated teller machines (ATMs) and electronic payment of bills-rather than by check or cash. (Wire transfers, checks, drafts, and paper instruments do not fall into this category.) Embezzlement: In most States, embezzlement is defined as theft/larceny of assets (money or property) by a person in a position of trust or responsibility over those assets. Embezzlement typically occurs in the employment and corporate settings. Encoding: The process used to imprint or inscribe MICR characters on checks, deposits, and other financial instruments. [Magnetic Ink Character Recognition (MICR) is a characterrecognition technology adopted mainly by the banking industry to facilitate the processing of checks. Each check in encoded at the bottom with the dollar amount of the check. If that information is entered incorrectly, there is an encoding error.] Enforcement Action: A regulatory tool that the OCC may use to correct problems or effect change in a national bank. Equal Credit Opportunity Act (ECOA): Prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age, or because an applicant receives income from a public assistance program. Error Resolution: The required process for resolving errors involving electronic transfers to and from deposit accounts. Escheat: Reversion of real or personal property to the State when 1) a person dies without leaving a will and has no heirs, or 2) when the property (such as a bank account) has been inactive for a certain period of time. Escrow: A financial instrument held by a third party on behalf of the other two parties in a transaction. The funds are held by the escrow service until it receives the appropriate written or oral instructions-or until obligations have been fulfilled. Securities, funds, and other assets can be held in escrow. Escrow Analysis: https://www.facebook.com/groups/BANKPOANDCLERK
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The periodic examination of escrow accounts by a mortgage company to verify that monthly deposits are sufficient to pay taxes, insurance, and other escrow-related items on when due. Escrow Funds: Funds held in reserve by a mortgage company to pay taxes, insurance, and other mortgage-related items when due. Estate Account: An account held in the name of a decedent that is administered by an executor or administrator of the estate. Exception Hold: A period of time that allows the banks to exceed the maximum hold periods defined in the Expedited Funds Availability Act. F Fair and Accurate Credit Transactions Act of 2003 (FACT Act or FACTA): The purpose of this Act is to help consumers protect their credit identities and recover from identity theft. One of the key provisions of this Act is that consumers can request and obtain a free credit report once every 12 months from each of the three nationwide consumer credit reporting companies (Equifax, Experian, and TransUnion). AnnualCreditReport.com provides consumers with the secure means to request their free credit report. Fair Credit Reporting Act (FCRA): A Federal law, established in 1971 and revised in 1997, that gives consumers the right to see their credit records and correct any mistakes. The FCRA regulates consumer credit reporting and related industries to ensure that consumer information is reported in an accurate, timely, and complete manner. The Act was amended to address the sharing of consumer information with affiliates. Fair Debt Collection Practices Act (FDCPA): The Fair Debt Collection Practices Act is a set of United States statutes added as Title VIII of the Consumer Credit Protection Act. Its purpose is to ensure ethical practices in the collection of consumer debts and to provide consumers with an avenue for disputing and obtaining validation of debt information in order to ensure the information's accuracy. It is often used in conjunction with the Fair Credit Reporting Act. Federal Deposit Insurance Corporation (FDIC): https://www.facebook.com/groups/BANKPOANDCLERK
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A government corporation that insures the deposits of all national and State banks that are members of the Federal Reserve System. Federal Emergency Management Agency (FEMA): Federal agency responsible for the emergency evaluation and response to all disasters, natural and man-made. FEMA oversees the administration of flood insurance programs and the designation of certain areas as flood prone. Federal Reserve System: The central bank of the United States. The Fed, as it is commonly called, regulates the U.S. monetary and financial system. The Federal Reserve System is composed of a central governmental agency in Washington, D.C. (the Board of Governors) and twelve regional Federal Reserve Banks in major cities throughout the United States. You can divide the Federal Reserve's duties into four general areas: Conducting monetary policy Regulating banking institutions and protecting the credit rights of consumers Maintaining the stability of the financial system Providing financial services to the U.S. government Fiduciary: Undertaking to act as executor, administrator, guardian, conservator, or trustee for a family trust, authorized trust, or testamentary trust, or receiver or trustee in bankruptcy. Finance Charge: The total cost of credit a customer must pay on a consumer loan, including interest. The Truth in Lending Act requires disclosure of the finance charge. Financial Regulatory Agency: An organization authorized by statute for ensuring the safe and sound operation of financial institutions chartered to conduct business under that agency's jurisdiction. The primary regulators are the following: OCC (Office of the Comptroller of the Currency) FDIC (Federal Deposit Insurance Corporation) FRB (Federal Reserve Board) NCUA (National Credit Union Administration) State regulatory agencies First Mortgage: A real estate loan which is in a first lien position, taking priority over all other liens. In case of a foreclosure, the first mortgage will be repaid before any other mortgages. Fixed Rate Loan: https://www.facebook.com/groups/BANKPOANDCLERK
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The interest rate and the payment remain the same over the life of the loan. The consumer makes equal monthly payments of principal and interest until the debt is paid in full. Fixed Rate Mortgage: A mortgage with payments that remain the same throughout the life of the loan because the interest rate and other terms are fixed and do not change. Float: 1) The amount of uncollected funds represented by checks in the possession of one bank but drawn on other banks. 2) The time that elapses between the day a check is deposited and the day it is presented for payment to the financial institution on which it is drawn. Flood Insurance: Flood insurance protects against water from an overflowing river or a hurricane's tidal surge and also covers damage from water that builds up during storms. Flood Plain: A strip of relatively flat and normally dry land alongside a stream, river, or lake that is covered by water during a flood. Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Foreign Transaction Fees: A fee assessed by your bank for making a transaction at another bank's ATM. Forged Check: A check on which the drawer's signature has been forged. Forgery: The fraudulent signing or alteration of another's name to an instrument such as a deed, mortgage, or check. The intent of the forgery is to deceive or defraud. Fraud Alert: A key provision of the Fair and Accurate Credit Transactions Act of 2003 is the consumer's ability to place a fraud alert on their credit record. A consumer would use this option if they believe they were a victim of identity theft. The alert requires any creditor that is asked to extend credit to contact the consumer by phone and verify that the credit application was not made by an identity thief. https://www.facebook.com/groups/BANKPOANDCLERK
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Freedom of Information Act (FOIA): A Federal law that mandates that all the records created and kept by Federal agencies in the executive branch of government must be open for public inspection and copying. The only exceptions are those records that fall into one of nine exempted categories listed in the statute. Frozen Account: An account on which funds may not be withdrawn until a lien is satisfied and a court order or other legal process makes the account available for withdrawal (e.g., the account of a deceased person is frozen pending a court order distributing the funds to the new lawful owners). An account may also be frozen when there is a dispute regarding the true ownership of an account. The bank will freeze the account to preserve the existing funds until legal action can determine the lawful owner. Furnisher: An entity that provides information about a consumer to a consumer reporting agency for inclusion in a consumer report. G Garnishment/Garnish: A legal process that allows a creditor to remove funds from your bank account to satisfy a debt that you have not paid. If you owe money to a person or company, they can obtain a court order directing your bank to take money out of your account to pay off your debt. Guaranteed Student Loan: An extension of credit from a financial institution that is guaranteed by a Federal or State government entity to assist with tuition and other educational expenses. The government entity is responsible for paying the interest on the loan and paying the lender to manage it. The government entity also is responsible for the loan if the student defaults. Guarantor: A party who agrees to be responsible for the payment of another party's debts should that party default. H Hold: Used to indicate that a certain amount of a customer's balance may not be withdrawn until an item has been collected, or until a specific check or debit is posted. https://www.facebook.com/groups/BANKPOANDCLERK
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Home Equity Line of Credit (HELOC): A line of credit secured by the equity in a consumer's home. It can be used for home improvements, debt consolidation, and other major purchases. Interest paid on the loan is generally tax deductible (consult a tax advisor to be sure). The funds may be accessed by writing checks against the line of credit or by getting a cash advance. Home Equity Loan: A home equity loan allows you to tap into your home's built-up equity, which is the difference between the amount that your home could be sold for and the amount that you still owe. Homeowners often use a home-equity loan for home improvements, to pay for a new car, or to finance their child's college education. The interest paid is usually taxdeductible. Because the loan is secured by your home's equity, if you default, the bank may foreclose on your house and take ownership of it. This type of loan is sometimes referred to as a second mortgage or borrowing against your home. I Inactive Account: An account that has little or no activity; neither deposits nor withdrawals having been posted to the account for a significant period of time. Index-linked Certificate of Deposit: An index-linked CD is a deposit obligation of the issuing bank and is often sold through bank branches and affiliated and unaffiliated brokers. Index-linked CDs provide the investor the ability to participate in the appreciation, if any, of a particular index, during the term of the CD. Index-linked CDs may have complicated payout structures and may not be suitable or appropriate for all investors. Investors should carefully review the investment risk considerations detailed in the relevant offering documents and disclosure statements. Index-linked CDs are not securities and are not registered under securities laws. Individual Account: An account in the name of one individual. Individual Retirement Account (IRA): A retirement savings program for individuals to which yearly tax-deductible contributions up to a specified limit can be made. The amount contributed is not taxed until withdrawn. Withdrawal is not permitted without penalty until the individual reaches age 59 1/2. https://www.facebook.com/groups/BANKPOANDCLERK
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Insufficient Funds: When a depositor's checking account balance is inadequate to pay a check presented for payment. Insurance (Hazard): Insurance to protect the homeowner and the lender against physical damage to a property from sources such as but not limited to fire, wind, or vandalism. Insured Deposits: Deposits held in financial institutions that are guaranteed by the Federal Deposit Insurance Corporation (FDIC) against loss due to bank failure. Interest: The term interest is used to describe the cost of using money, a right, share, or title in property. Interest Rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Interest Rate Index: IA table of yields or interest rates being paid on debt that is used to determine interestrate changes for adjustable-rate mortgages and other variable-rate loans. J Joint Account: An account owned by two or more persons. Either party can conduct transactions separately or together as set forth in the deposit account contract. K Kiting: Writing a check in an amount that will overdraw the account but making up the deficiency by depositing another check on another bank. For example, mailing a check for the mortgage when your checking account has insufficient funds to cover the check, but counting on receiving and depositing your paycheck before the mortgage company presents the check for payment. L Late Charge: https://www.facebook.com/groups/BANKPOANDCLERK
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The fee charged for delinquent payment on an installment loan, usually expressed as a percentage of the loan balance or payment. Also, a penalty imposed by a card issuer against a cardholder's account for failing to make minimum payments. Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Lender: An individual or financial institution that lends money with the expectation that the money will be returned with interest. Lien: Legal claim against a property. Once the property is sold, the lien holder is then paid the amount that is owed. Line of Credit: A pre-approved loan authorization with a specific borrowing limit based on creditworthiness. A line of credit allows borrowers to obtain a number of loans without re-applying each time as long as the total of borrowed funds does not exceed the credit limit. Loan-to-Value Ratio (LTV): The ratio of the loan principal (amount borrowed) to the appraised value (selling price). For example, on a $100,000 home, with a mortgage loan principal of $80,000, the loan-to-value ratio is 80 percent. The LTV will affect programs available to the borrower; generally, the lower the LTV, the more favorable the program terms offered by lenders. Loan Contract: The written agreement between a borrower and a lender in which the terms and conditions of the loan are set. Loan Fee: A fee charged by a lender to make a loan (in addition to the interest charged to the borrower). Loan Modification Provision: A contractual agreement in a loan that allows the borrower or lender to permanently change one or more of the terms of the original contract. Loan Proceeds: https://www.facebook.com/groups/BANKPOANDCLERK
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The net amount of funds that a lending institution disburses under the terms of a loan, and which the borrower then owes. Local Check: A check payable by, at, or through a bank in the same check processing region as the location of the branch of the depository bank. The depository bank is the bank into which the check was deposited. As of February 27, 2010, the Federal Reserve consolidated its checking processing centers into one processing center. Therefore, all checks are now considered local. M Manufactured (mobile) home: A structure, built on a permanent chassis, transported to a site in one or more sections, and affixed to a permanent foundation. The term does not include recreational vehicles. Maturity: The date on which the principal balance of a loan, bond, or other financial instrument becomes due and payable. Media: Any organization in the business of informing the public with news or commentary. The various forms of media include print, television, internet, and radio. Minimum Balance: The amount of money required to be on deposit in an account to qualify the depositor for special services or to waive a service charge. Minimum Payment: The minimum dollar amount that must be paid each month on a loan, line of credit, or other debt. Missing Payment: A payment that has been made but not credited to the appropriate account. Mobile home:To be eligible for coverage under the National Flood Insurance Program, a mobile home must be on a permanent foundation and meet specific anchoring requirements for it location. See manufactured (mobile) home. Money Market Deposit Account: A savings account that offers a higher rate of interest in exchange for larger than normal deposits. Insured by the FDIC, these accounts have limits on the number of https://www.facebook.com/groups/BANKPOANDCLERK
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transactions allowed and may require higher balances to receive the higher rate of interest. Money Market Fund: An open-ended mutual fund that invests in short-term debts and monetary instruments such as Treasury bills and pays money market rates of interest. Money market funds usually offer checkwriting privileges. They are not insured by the FDIC. Mortgage: A debt instrument used in a real estate transaction where the property is the collateral for the loan. A mortgage gives the lender a right to take possession of the property if the borrower fails to pay off the loan. Mortgage Loan: A loan made by a lender to a borrower for the financing of real property. Mortgagee: The lender in a mortgage loan relationship. Mortgagor: The borrower in a mortgage loan relationship. (Property is used as collateral to make payment.) Mutual Fund: A fund operated by an investment company that raises money from shareholders and invests it in stocks, bonds, options, commodities, or money market securities. These funds offer investors the advantages of diversification and professional management. To participate, the investor may pay fees and expenses. (Mutual funds are not covered by FDIC insurance.) N National Bank: A bank that is subject to the supervision of the Comptroller of the Currency. The Office of the Comptroller of the Currency is a bureau of the U.S. Treasury Department. A national bank can be recognized because it must have "national" or "national association" in its name. National Bank Examiner: An employee of the Comptroller of the Currency whose function is to examine national banks periodically to determine the financial position of a bank and the security of its deposits. The examiner also verifies that the bank maintains procedures consistent with Federal banking laws and regulations. https://www.facebook.com/groups/BANKPOANDCLERK
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National Credit Union Administration (NCUA): The Federal regulatory agency that charters and supervises Federal credit unions. (NCUA also administers the National Credit Union Share Insurance Fund, which insures the deposits of Federal credit unions.) National Flood Insurance Program (NFIP): The program of flood insurance coverage and floodplain management administered under the Flood Disaster Protection Act (FDPA or Act) and applicable Federal regulations found in Title 44 of the Code of Federal Regulations, Subchapter B. Negotiable Order of Withdrawal Account (NOW): A savings account from which withdrawals can be made by negotiable orders of withdrawal (functional equivalent of checks). This is an interest-bearing account for which the bank must reserve the right to require the depositor to provide at least seven days notice of his/her intent to withdraw funds. Not Automatically Protected: There are several types of Federal benefits that are not automatically protected under 31CFR 212: Federal benefits received by check rather than direct deposit; Federal benefits received more than two months before the bank received the garnishment order or Federal benefits that were transferred to another bank account. The benefits may be exempt from garnishment but you will have to alert the court or creditor. O Official Check: A check drawn on a bank and signed by an authorized bank official. (Also known as a cashier's check.) Offset, Right of: Banks' legal right to seize funds that a guarantor or debtor may have on deposit to cover a loan in default. It is also known as right of setoff Online Banking: A service that allows an account holder to obtain account information and manage certain banking transactions through a personal computer via the financial institution's web site on the Internet. (This is also known as Internet or electronic banking.) Open-End Credit: A credit agreement (typically a credit card) that allows a customer to borrow against a preapproved credit line when purchasing goods and services. The borrower is only https://www.facebook.com/groups/BANKPOANDCLERK
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billed for the amount that is actually borrowed plus any interest due. (Also called a charge account or revolving credit.) Operating Subsidiary: National banks conduct some of their banking activities through companies called operating subsidiaries. These subsidiaries are companies that are owned or controlled by a national bank and that, among other things, offer banking products and services such as loans, mortgages, and leases. The Office of the Comptroller of the Currency supervises and regulates the activities of many of these operating subsidiaries. Outstanding Check: A check written by a depositor that has not yet been presented for payment to or paid by the depositor's bank. Overdraft: When the amount of money withdrawn from a bank account is greater than the amount actually available in the account, the excess is known as an overdraft, and the account is said to be overdrawn. Overdraw: To write a check for an amount that exceeds the amount on deposit in the account. Overlimit: An open-end credit account in which the assigned dollar limit has been exceeded. P Participating Community: A community for which the Federal Emergency Management Agency (FEMA) has authorized the sale of flood insurance under the National Flood Insurance Program (NFIP). Passbook: A book in ledger form in which are recorded all deposits, withdrawals, and earnings of a customer's savings account. Past Due Item : Any note or other time instrument of indebtedness that has not been paid on the due date. Payday Loans: https://www.facebook.com/groups/BANKPOANDCLERK
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A small-dollar, short-term loan that a borrower promises to repay out of their next paycheck or deposit of funds. Payee: The person or organization to whom a check, draft, or note is made payable. Paying (Payor) Bank : A bank upon which a check is drawn and that pays a check or other draft. Payment Due Date: The date on which a loan or installment payment is due. It is set by a financial institution. Any payment received after this date is considered late; fees and penalties can be assessed. Payoff: The complete repayment of a loan, including principal, interest, and any other amounts due. Payoff occurs either over the full term of the loan or through prepayments. Payoff Statement: A formal statement prepared when a loan payoff is contemplated. It shows the current status of the loan account, all sums due, and the daily rate of interest. Payor: The person or organization who pays. Periodic Rate: The interest rate described in relation to a specific amount of time. The monthly periodic rate, for example, is the cost of credit per month; the daily periodic rate is the cost of credit per day. Periodic Statement: The billing summary produced and mailed at specified intervals, usually monthly. Personal Identification Number (PIN): Generally a four-character number or word, the PIN is the secret code given to credit or debit cardholders enabling them to access their accounts. The code is either randomly assigned by the bank or selected by the customer. It is intended to prevent unauthorized use of the card while accessing a financial service terminal. PITI: Common acronym for principal, interest, taxes, and insurance—used when describing the monthly charges on a mortgage. https://www.facebook.com/groups/BANKPOANDCLERK
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Point of Sale (POS): 1) The location at which a transaction takes place. 2) Systems that allow bank customers to effect transfers of funds from their deposit accounts and other financial transactions at retail establishments. Power of Attorney: A written instrument which authorizes one person to act as another's agent or attorney. The power of attorney may be for a definite, specific act, or it may be general in nature. The terms of the written power of attorney may specify when it will expire. If not, the power of attorney usually expires when the person granting it dies. Some institutions require that you use the bank's power of attorney forms. (The bank may refer to this as a Durable Power of Attorney: The principal grants specific rights to the agent.) Preauthorized Electronic Fund Transfers: An EFT authorized in advance to recur at substantially regular intervals. Preauthorized Payment: A system established by a written agreement under which a financial institution is authorized by the customer to debit the customer's account in order to pay bills or make loan payments. Preferred Risk Policy (PRP): A policy that offers fixed combinations of building/contents coverage or contents-only coverage at modest, fixed premiums. The PRP generally is available for property located in B, C, and X Zones in Regular Program Communities that meets eligibility requirements based on the property‘s flood loss history. Prepayment: The payment of a debt before it actually becomes due. Prepayment Clause: A clause in a mortgage allowing the mortgagor to pay off part or all of the unpaid debt before it becomes due. Prepayment Penalty: A penalty imposed on a borrower for repaying the loan before its due date. (In the case of a mortgage, this applies when there is not a prepayment clause in the mortgage note to offset the penalty.) Previous Balance: https://www.facebook.com/groups/BANKPOANDCLERK
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The cardholder's account balance as of the previous billing statement. Principal Balance: The outstanding balance on a loan, excluding interest and fees. Private Mortgage Insurance (PMI): Insurance offered by a private insurance company that protects the bank against loss on a defaulted mortgage up to the limit of the policy (usually 20 to 25 percent of the loan amount). PMI is usually limited to loans with a high loan-to-value (LTV) ratio. The borrower pays the premium. Q R Real Estate Settlement Procedures Act (RESPA): Federal law that, among other things, requires lenders to provide "good faith" estimates of settlement costs and make other disclosures regarding the mortgage loan. RESPA also limits the amount of funds held in escrow for real estate taxes and insurance. Reconciliation: The process of analyzing two related records and, if differences exist between them, finding the cause and bringing the two records into agreement. Example: Comparing an up-to-date check book with a monthly statement from the financial institution holding the account. Redlining: The alleged practice of certain lending institutions of not making mortgage, home improvement, and small business loans in certain neighborhoods-usually areas that are deteriorating or considered by the lender to be poor investments. Refinancing: A way of obtaining a better interest rate, lower monthly payments, or borrow cash on the equity in a property that has built up on a loan. A second loan is taken out to pay off the first, higher-rate loan. Refund: An amount paid back because of an overpayment or because of the return of an item previously sold. Regular Program Community: A community wherein a Flood Insurance Rate Map is in effect and full limits of coverage are available under the Flood Disaster Protection Act (FDPA or Act). https://www.facebook.com/groups/BANKPOANDCLERK
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Release of Lien: To free a piece of real estate from a mortgage. Renewal: A form of extending an unpaid loan in which the borrower's remaining unpaid loan balance is carried over (renewed) into a new loan at the beginning of the next financing period. Residual Interest: Interest that continues to accrue on your credit card balance from the statement cycle date until the bank receives your payment. For example, if your statement cycle date was January 10 and the bank received your payment on January 20, there were ten days for which interest accrued. This amount will be posted on your next statement. Return Item: A negotiable instrument—principally a check—that has been sent to one bank for collection and payment and is returned unpaid by the sending bank. Reverse Mortgage: A reverse mortgage is a special home loan product that allows a homeowner aged 62 or older the ability to access the equity that has accumulated in their home. The home itself will be the source of repayment. The loan is underwritten based on the value of the collateral (home) and the life expectancy of the borrower. The loan must be repaid when you die, sell your home, or no longer live there as your principal residence. Revolving Credit: A credit agreement (typically a credit card) that allows a customer to borrow against a preapproved credit line when purchasing goods and services. The borrower is only billed for the amount that is actually borrowed plus any interest due. (Also called a charge account or open-end credit.) Right of Offset: Banks' legal right to seize funds that a guarantor or debtor may have on deposit to cover a loan in default. It is also known as the right of set-off. Right of Rescission: Right to cancel, within three business days, a contract that uses the home of a person as collateral, except in the case of a first mortgage loan. There is no fee to the borrower, who receives a full refund of all fees paid. The right of rescission is guaranteed by the Truth in Lending Act (TILA). https://www.facebook.com/groups/BANKPOANDCLERK
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S Safe (or Safety) Deposit Box: A type of safe usually located in groups inside a bank vault and rented to customers for their use in storing valuable items. Safekeeping: A service provided by banks where securities and valuables are protected in the vaults of the bank for customers. Satisfaction of Mortgage: A document issued by a mortgagee (the lender) when a mortgage is paid in full. Service Charge: A charge assessed by a depository institution for processing transactions and maintaining accounts. Signature Card: A card signed by each depositor and customer of a bank which may be used as a means of identification. The signature card represents a contract between the bank and the depositor. Special Flood Hazard Area (SFHA): An area defined on a Flood Insurance Rate Map with an associated risk of flooding. Stale-Dated Check: Presented to the paying bank 180 days (6 months) or more after the original issue date. Banks are not required by the Uniform Commercial Code to honor stale-dated checks and can return them to the issuing bank unpaid. The maker of a check can discourage late presentment by writing the words "not good after X days" on the back of the check. State Bank: A bank that is organized under the laws of a State and chartered by that State to conduct the business of banking. State Banking Department: The organization in each State that supervises the operations and affairs of State banks. Statement: A summary of all transactions that occurred over the preceding month and could be associated with a deposit account or a credit card account. https://www.facebook.com/groups/BANKPOANDCLERK
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Stop Payment: An order not to pay a check that has been issued but not yet cashed. If requested soon enough, the check will not be debited from the payer's account. Most banks charge a fee for this service. Student Loan: Loans made, insured, or guaranteed under any program authorized by the Higher Education Act. Loan funds are used by the borrower for education purposes. Substitute Check: A substitute check is a paper copy of the front and back of the original check. A substitute check is slightly larger than a standard personal check so that it can contain a picture of your original check. A substitute check is legally the same as the original check if it accurately represents the information on the original check and includes the following statement: "This is a legal copy of your check. You can use it the same way you would use the original check." The substitute check must also have been handled by a bank. Substitute checks were created under Check 21, the Check Clearing for the 21st Century Act, which became effective on October 28, 2004. T Terms: The period of time and the interest rate arranged between creditor and debtor to repay a loan. Time Certificate of Deposit: A time deposit evidenced by a negotiable or nonnegotiable instrument specifying an amount and maturity. Time Deposit: A time deposit (also known as a term deposit) is a money deposit at a bank that cannot be withdrawn for a certain "term" or period of time. When the term is over it can be withdrawn, or it can be held for another term. The longer the term, the better the yield on the money. Generally, there are significant penalties for early withdrawal. Trust Account: A general term that covers all types of accounts in a trust department, such as estates, guardianships, and agencies. Trust Administrator: A person or institution that manages trust accounts. https://www.facebook.com/groups/BANKPOANDCLERK
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Truth in Lending Act (TILA): The Truth in Lending Act is a Federal law that requires lenders to provide standardized information so that borrowers can compare loan terms. In general, lenders must provide information on what credit will cost the borrowers, when charges will be imposed, and what the borrower's rights are as a consumer. U Uncollected Funds: A portion of a deposit balance that has not yet been collected by the depository bank. Uniform Commercial Code (UCC): A set of statutes enacted by the various States to provide consistency among the States' commercial laws. It includes negotiable instruments, sales, stock transfers, trust and warehouse receipts, and bills of lading. Uniform Gift to Minors Account: A UGMA provides a child under the age of 18 (a minor) with a way to own investments. The money is in the minor's name, but the custodian (usually the parent) has the responsibility to handle the money in a prudent manner for the minor's benefit. The parent cannot withdraw the money to use for his or her own needs. Usury: Charging an illegally high interest rate on a loan. Usury Rates: The maximum rate of interest lenders may charge borrowers. The usury rate is generally set by State law. V Variable Rate: Any interest rate or dividend that changes on a periodic basis. W Wire Transfer: A transfer of funds from one point to another by wire or network such the Federal Reserve Wire Network (also known as FedWire).
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BANK INTERVIEW QUESTIONs 1. What is Balance of Trade? The value of a country‘s exports minus the value of its imports. Unless specified as the balance of merchandise trade, it normally incorporates trade in services, including earnings (interest, dividends, etc.) on financial assets. 2. What is Balanced Trade? When A balance of trade equal to zero. (exports-imports=0) 3. What is Balance of merchandise trade? The value of a country‘s merchandise exports minus the value of its merchandise imports. 4. What is a favorable balance of trade? It is the difference between exports and imports. Debit items include imports, foreign aid, domestic spending abroad and domestic investments abroad. Credit items include exports, foreign spending in the domestic economy and foreign investments in the domestic economy. A country has a trade deficit if it imports more than it exports; the opposite scenario is a trade surplus. 5. What is Balance of Payments? A list, or accounting, of all of a country‘s international transactions for a given time period, usually one year. Payments into the country (receipts) are entered as positive numbers, called credits; payments out of the country (payments) are entered as negative numbers called debits. A single number summarizing all of a country‘s international transactions: the balance of payments surplus. 6. What is Balance of payments adjustment mechanism? Any process, especially any automatic one, by which a country with a payments imbalance moves toward balance of payments equilibrium 7. What is Monopolistic Competition? A market structure in which there are many sellers each producing a differentiated product. Each can set its own price and quantity, but is too small for that to matter for prices and quantities of other producers in the industry. 8. What is MFN? MFN stands for Most Favoured Nation. The principle, fundamental to the GATT, of treating imports from a country on the same basis as that given to the most favored other nation. That is, and with some exceptions, every https://www.facebook.com/groups/BANKPOANDCLERK
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country gets the lowest tariff that any country gets, and reductions in tariffs to one country are provided also to others. 9. What is Gold Standard? A monetary system in which both the value of a unit of the currency and the quantity of it in circulation are specified in terms of gold. If two currencies are both on the gold standard, then the exchange rate between them is approximately determined by their two prices in terms of gold. 10. What is Balance on capital account? A country‘s receipts minus payments for capital account transactions. 11. What is Balance on current account ? A country‘s receipts minus payments for current account transactions. Equals the balance of trade plus net inflows of transfer payments. 12. What is a Balanced budget ? A government budget surplus that is zero, thus with net tax revenue equaling expenditure. A balanced budget change in policy or behavior is one in which a component of the government budget, usually taxes, is adjusted as necessary to maintain a balanced budget. 13. What is balanced growth of an Economy? Growth of an economy in which all aspects of it, especially factors of production, grow at the same rate. 14. What is a Bank rate The interest rate charged by a central bank to commercial banks for very short term loans. 15. What is a Repo? Repo is ―Repurchase Agreement. An agreement to sell a security for a specified price and to buy it back later at another specified price. A repo is essentially a secured loan. 16. What is Repo Rate? Whenever the banks have any shortage of funds they can borrow it from RBI. Repo rate is the rate at which our banks borrow rupees from RBI. A reduction in the repo rate will help banks to get money at a cheaper rate. When the repo rate increases borrowing from RBI becomes more expensive. On March 4, 2009 it was 5% in India (please check the latest figure by RBI) 17. What is CRR Rate in India? Cash reserve Ratio (CRR) is the amount of funds that the banks have to keep with RBI. If RBI decides to increase the percent of this, the available amount https://www.facebook.com/groups/BANKPOANDCLERK
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with the banks comes down. RBI is using this method (increase of CRR rate), to drain out the excessive money from the banks. 18. What is a Reverse Repo Rate? Reverse Repo rate is the rate at which Reserve Bank of India (RBI) borrows money from banks. Banks are always happy to lend money to RBI since their money are in safe hands with a good interest. An increase in Reverse repo rate can cause the banks to transfer more funds to RBI due to this attractive interest rates. It can cause the money to be drawn out of the banking system. Due to this fine tuning of RBI using its tools of CRR, Bank Rate, Repo Rate and Reverse Repo rate our banks adjust their lending or investment rates for common man. On March 4, 2009 Reverse Repo Rate is 3.5% (please check latest rate by RBI) 19. What is SLR Rate? SLR (Statutory Liquidity Ratio) is the amount a commercial bank needs to maintain in the form of cash, or gold or govt. approved securities (Bonds) before providing credit to its customers. SLR rate is determined and maintained by the RBI (Reserve Bank of India) in order to control the expansion of bank credit. 20. How is SLR determined? SLR is determined as the percentage of total demand and percentage of time liabilities. Time Liabilities are the liabilities a commercial bank liable to pay to the customers on their anytime demand. . 21. What is the Need of SLR? With the SLR (Statutory Liquidity Ratio), the RBI can ensure the solvency a commercial bank. It is also helpful to control the expansion of Bank Credits. By changing the SLR rates, RBI can increase or decrease bank credit expansion. Also through SLR, RBI compels the commercial banks to invest in government securities like government bonds.. 22. What is the main use of SLR? SLR is used to control inflation and propel growth. Through SLR rate tuning the money supply in the system can be controlled efficiently. 23. What is Inflation in India? Increase in the overall price level of an economy, usually as measured by the CPI /WPI or by the implicit price deflator. Inflation is as an increase in the price of bunch of Goods and services that projects the Indian economy. An increase in inflation figures occurs when there is an increase in the average https://www.facebook.com/groups/BANKPOANDCLERK
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level of prices in Goods and services. Inflation happens when there are less Goods and more buyers, this will result in increase in the price of Goods, since there is more demand and less supply of the goods.. 24. What is Deflation? A fall in the general level of prices. Unlikely unless the rate of inflation is already low, it may then be due either to a surge in productivity or, less favorably, to a recession. Deflation is the continuous decrease in prices of goods and services. Deflation occurs when the inflation rate becomes negative (below zero) and stays there for a longer period. 25. What is a Barter economy? An economic model of international trade in which goods are exchanged for goods without the existence of money. Most theoretical trade models take this form in order to abstract from macroeconomic and monetary considerations. 26.What is Basel I? Also known at Basel Capital Accord, this was an agreement in 1988 by the Basel Committee of central bankers to measure the credit risk of commercial banks and set minimum standards for bank capital in order to reduce the likelihood of international repercussions due to bank failures. 27.What is Basel II? The Basel II Framework describes a more comprehensive measure and minimum standard for capital adequacy that national supervisory authorities are now working to implement through domestic rule-making and adoption procedures. It seeks to improve on the existing rules by aligning regulatory capital requirements more closely to the underlying risks that banks face. In addition, the Basel II Framework is intended to promote a more forwardlooking approach to capital supervision, one that encourages banks to identify the risks they may face, today and in the future, and to develop or improve their ability to manage those risks. As a result, it is intended to be more flexible and better able to evolve with advances in markets and risk management practices. The efforts of the Basel Committee on Banking Supervision to revise the standards governing the capital adequacy of internationally active banks achieved a critical milestone in the publication of an agreed text in June 2004. 28.What is a Beggar thy neighbor policy? For a country to use a policy for its own benefit that harms other countries. https://www.facebook.com/groups/BANKPOANDCLERK
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Examples are optimal tariffs and, in a recession, tariffs and/or devaluation to create employment. 29. What is a Bill of Lading? This term is normally used in shipping industry. The receipt given by a transportation company to an exporter when the former accepts goods for transport. It includes the contract specifying what transport service will be provided and the limits of liability. 30. What is the use of color boxes in WTO category of subsidies? Used with a color, a category of subsidies based on status in WTO: red=forbidden, amber or orange=go slow, green=permitted, blue=subsidies tied to production limits. Terminology seems only to be used in agriculture, where in fact there is no red box. 31. What is a fiscal deficit? A deficit in the government budget of a country and represents the excess of expenditure over income. So this is the amount of borrowed funds required by the government to meet its expenditures completely. India‘s fiscal deficit widened to Rs. 541.58 billion in April, 2009 as compared to Rs. 329.39 billion rupees in April 2008. 32. What is Black Money ? Black Money is the unaccounted money concealed from the tax authorities. The black money runs a parallel economy adversely affecting the distribution of wealth & income in the economy. The total amount of black money globally is estimated between $2.1 and 2.5 trillion. This is roughly about seven percent of the world‘s GDP. 33.What is a Black Market? A black market is an illegal market, in which something is bought and sold outside of official government-sanctioned channels. Black markets tend to arise when a government tries to fix a price without itself providing all of the necessary supply or demand. Black markets in foreign exchange almost always exist when there are exchange controls. 34.What is a blue chip company? Why it is blue color only used in such companies? A blue chip is concerned with stocks & shares of company, which are well established and whose purchase is considered extremely safe. Due to stable earnings and no extensive liabilities these companies are called blue chip companies. https://www.facebook.com/groups/BANKPOANDCLERK
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The term blue chip comes from casinos, where blue chips stand for counters of the highest value. Most blue chip stocks pay regular dividends, even when business is faring worse than usual. 35.What is a direct Tax? A direct tax is that which is paid directly by someone to taxing authority. Income tax and property tax are examples of direct tax. They are not shifted to somebody else. 36.What is an Indirect Tax? This type of tax is not paid by someone directly to the authorities and it is actually passed on to the other in the form of increased cost. They are levied on goods and services produced or purchased. Excise tax, Sales tax, VAT are indirect taxes. 37.What are LDCs or Least Developed Countries? Least Developed Countries (LDCs) are countries which as per United Nations show the lowest indicators of socioeconomic development. They have lowest Human Development Index ratings of all countries in the world. A country which has three-year average Gross national Income per capita of less than US $750 is tagged as LDC. a LDC must have an income of $ 900 to escape this tag. Besides if thse countries show human resource weakness based on indicators of nutrition, health, education and adult literacy and also or economic vulnerability based on instability of economy . Currently UN has tagged 49 countries in LDC. India is not an LDC. 38.What are Middle Income Countries ? Middle-income countries (MICs) are the 86 countries that fall into the middleincome range set by the Bank‘s World Development Indicators. They account for just under half of the world‘s population; are home to one-third of people across the globe living on less than $2 per day; and are found in all six of the Bank‘s geographical regions. They cover a wide income range, with the highest income MIC having a per capita income 10 times that of the lowest. 39.What is Policy of Laissez Faire? Laissez Faire is a French term and means no interference. It is a doctrine that states that government generally should not intervene in the marketplace. 40.What is the difference between Monopoly and Monopsony ? In monopsony only one buyer faces many sellers. So this is called Buyer‘s Monopoly. It is a rare situation in today‘s economy. https://www.facebook.com/groups/BANKPOANDCLERK
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In monopoly one seller faces many buyers. As the only purchaser of a good or service, the ―monopsonist‖ may dictate terms to its suppliers in the same manner that a monopolist controls the market for its buyers. 41.What is the main function of Competition Commission of India? CCI is an independent body which become operational w.e.f. May 20, 2009 and is responsible for investigating the mergers, market shares & conditions besides regulating firms. CCI will ultimately replace the Monopolies and Restrictive Trade Practices Commission (MRTPC) ofIndia. 42.What is Lead Bank Scheme? Lead bank scheme was introduced around 40 years ago and recently it was in the news as a high level committee chaired by RBI Deputy Governor Usha Thorat was constituted to review and revitalize this scheme. The scheme aims at facilitating credit delivery to the farfetched areas ofIndia. There are members of the committee from NABARD and SIDBI. Thus the scheme focuses upon financial inclusion. The Opinion of this committee is that full financial inclusion is possible only if it makes a facility of opening of no frill accounts backed by other specialized services. 43.What are Nostro & Vostro Accounts ? A nostro account is maintained by an Indian Bank in the foreign countries for a facility of easy clearing of their transactions. For instance, if the bank pays a demand drawn on it by its correspondent bank, there is no delay because the foreign corresponded bank would already have credited the nostro account of the paying bank while issuing the demand draft. A vostro account is maintained by a foreign bank in India with their corresponding bank. 44.From which country India imports maximum? From China. Import from China was $ 24.16 billion in 2008-09, which got doubled in 3 years. This is 10.3 % of all the imports of India. 45.What is Gold Standard? A system of setting currency values whereby the participating countries commit to fix the prices of their domestic currencies in terms of a specified amount of gold. 46.What is a Free Float Exchange Rate system? An exchange rate system characterized by the absence of government intervention. Also known as a clean float. https://www.facebook.com/groups/BANKPOANDCLERK
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47.What are Special Drawing rights SDR? SDR are new form of international reserve assets, created by the International Monetary Funds in 1967. The value of SDR is based on a portfolio of widely used currencies and they are maintained as accounting entries and not as hard currency or physical assets like Gold. 48.What are the requirements to open a New Branch in Rural Area? Since 2006, RBI has approved the opening of new branches only on the condition that at least half of such branches are opened in under-banked areas as notified by the regulator. The opening of branches by banks is governed by the provisions of Section 23 of the Banking Regulation Act, 1949. In terms of these provisions, banks cannot open a new place of business inIndia or abroad or change otherwise than within the same city, town or village, the location of the existing place of business without the prior approval of the ReserveBank of India (RBI). Thus, it is mandatory for RRBs to seek prior approval/ license from Rural Planning and Credit Department (RPCD) of RBI before opening of new branches/offices. RRB should fulfill the following conditions to become eligible for opening of new branch/es. 1. It should not have defaulted in maintenance of SLR and CRR during the last two years. 2. The RRB should be making operational profits, its net worth should show improvement 3. Its net NPA ratio should not exceed 8 per cent. 49.What is concept sustainable Development? Meeting the needs of the present without compromising the ability of future generations to meet their needs is called sustainable development. This concept is popular in present context of development. 50.What is the meaning of Financial Inclusion? Today is is well recognized that large population of India is out of reach of the formal banking services. Financial inclusion is the concept which has been floated to bring the most of the rural population / area under the net of the financial and banking services. 51. What is SATMO? SATMO is Satellite Money Order Service introduced by Postal Department Govt. of India on December 16, 1994. However this scheme could not make its headway due to functional complicacies. 52. What is “Vande Mataram Scheme” ? https://www.facebook.com/groups/BANKPOANDCLERK
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Vande mataram schem is a nationwide programme aimed at improving ante and post-natal care–which was launched on February 9, 2004. The scheme envisages free ante and post-natal check-ups, tips to avoid nutritional problems and anemia and counseling on small family norm and is a major initiative in Public Private partnerships during emergency. 53. What is Golden Handshake Scheme? Golden handshake scheme is a Govt. of India scheme introduced as a Voluntary retirement Scheme (VRS) in Industrial Policy Resolution 1991 for reducing the pressure of extra employees on public sector enterprises. 54. What is India Brand Equity Fund? This is a scheme to promote Indian Brands in Overseas Markets with the primary objective of brand promotion and not export promotion. To make the ―Made in India‖ label a symbol of quality, competitive price, reliability and service to the customer & to project India as a reliable supplier of quality goods and services. It was established on July 11, 1996. 55. What is Jago Grahak Jago”? The Consumer Awareness Scheme for the XI Plan amounting to a total of Rs. 409 crores has been approved by the Cabinet Committee on Economic Affairs on 24.01.08. This scheme has been formulated to give an increased thrust to a multi media publicity campaign to make consumers aware of their rights. The slogan ‗Jago Grahak Jago‘ is part of the publicity campaign undertaken in the last few years. ‗Jago Grahak Jago‘ has become the focal theme through which issues concerning the functioning of almost all Government Departments having a consumer interface can been addressed. To achieve this objective joint campaigns have been undertaken/are being undertaken with a number of Government Departments. 56. What is a revolving credit? Revolving credit is a type of credit that does not have a fixed number of payments. Corporate revolving credit facilities are typically used to provide liquidity for a company‘s day-to-day operations.The credit cards are examples of revolving credit. They are renewed automatically until the notice of cancellation is receieved. The time of repayment is specified. 57. What is Gender Budgeting? Gender budgeting is the process of conceiving, planning, approving, executing, monitoring, analyzing and auditing budgets in a gender-sensitive way. Gender https://www.facebook.com/groups/BANKPOANDCLERK
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Budgeting is actually an attempt to women upliftment without any sex discrimination while formulating the policies and making allocation for them. Gender Budgeting is a process that entails incorporating a gender perspective at various stages- planning/ policy/ programme formulation, assessment of needs of target groups, allocation of resources, implementation, impact assessment, reprioritization of resources. Gender Responsive Budget and Gender Mainstreaming are outcomes of Gender Budgeting. 58. What is Soft Currency? Soft currency is opposite of hard currency and it indicates a type of currency whose value may depreciate rapidly or that is difficult to convert into other currencies. Soft currency can be in the form of paper, electronic or debtbased ―IOUs‖ which have in the past been used in place of hard currency. This currency has limited convertibility into gold and other currencies. 59. What are factors of production? The resources and the inputs which are required to produce a good or service is called factor of production. The basic categories are land labor and capital. 60. What is the principle of Diminishing returns? This principle says that if one factor of production is fixed and constant additions of other factors are combined with this, the marginal productivity of variable factors will eventually decline. According to this relationship, in a production system with fixed and variable inputs (say factory size and labor), beyond some point, each additional unit of the variable input yields smaller and smaller increases in output. Conversely, producing one more unit of output costs more and more in variable inputs.
QUESTION AND ANSWERS 1. Which of the following statements is true? (1) Banks cannot accept demand and time deposits from public (2) Banks can accept only demand deposits from public (3) Banks can accept both demand and time deposits from public (4) Banks can accept both demand and time deposits from public (5) Banks can accept demand and time deposits only from government (4) Banks can accept both demand and time deposits from public 2. Which of the following is the correct statement? (1) State Bank of India is the sole authority to issue and manage currency in India https://www.facebook.com/groups/BANKPOANDCLERK
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(2) A nationalized bank is the sole authority to issue and manage currency in India (3) A cooperative bank is the sole authority to issue and manage currency in India (4) RBl is the sole authority to issue and manage currency in India (5) None of the above (4) RBl is the sole authority to issue and manage currency in India 3. Interest payable on savings bank accounts is (1) not regulated by RBI (2) regulated by Sate Governments (3) regulated by Central Government (4) regulated by RBI (5) regulated by Finance Minister (4) regulated by RBI 4. The usual deposit accounts of banks are (1) current accounts, electricity accounts and insurance premium accounts (2) current accounts post office savings bank accounts and term deposit accounts (3) loan accounts, savings bank accounts and term deposit accounts (4) current accounts, savings bank accounts and term deposit accounts (5) current bill accounts and term deposit accounts (4) current accounts, savings bank accounts and term deposit accounts 5. Fixed deposits and recurring deposits are (1) repayable after an agreed period (2) repayable on demand (3) not repayable (4) repayable after death of depositors (5) repayable on demand or after an agreed period as per bank‘s choice (1) repayable after an agreed period 6. Accounts are allowed to be operated by cheques in respect of (1) both savings bank accounts and fixed deposit accounts (2) savings bank accounts and current accounts (3) both savings bank accounts and loan accounts (4) both savings bank accounts and cash accounts only (5) both Current accounts and fixed deposit accounts (2) savings bank accounts and current accounts 7. Which of the following is correct statement? (1) Normally no interest is paid on current deposit accounts (2) Interest is paid on current accounts at the same rate as term deposit accounts (3) The rate of interest on current account and savings account are the same (4) No interest is paid on any deposit by the bank (5) Savings deposits are the same as current deposits (1) Normally no interest is paid on current deposit accounts 8. Mortgage is a https://www.facebook.com/groups/BANKPOANDCLERK
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(1) security on movable property for a loan given by a bank (2) security on immovable property for a loan given by a bank (3) concession on immovable property for a loan given by a bank (4) facility on immovable property for a loan given by a bank (5) security on immovable property for a deposit received by a bank (2) security on immovable property for a loan given by a bank 9. Which of the following is known as cross selling by banks? (A) Sale of a debit card to a credit card holder. (B) Sale of Insurance policy to a depositor. (C) Insurance of cash against cheque presented by a third party. (1) Only (A) (2) Only (B) (3) Only (C) (4) Both (A) and (C) (5) All (A), (B) and (C) (5) All (A), (B) and (C) 10. Financial inclusion means provision of (1) financial services namely, payments, remittances, savings, loans and insurance at affordable cost to persons not yet given the same (2) ration at affordable cost to persons not yet given the same (3) house at affordable cost to persons not yet given the same (4) food at affordable cost to persons not yet given the same (5) education at affordable cost to persons not yet given the same (1) financial services namely, payments, remittances, 11. When a bank returns a cheque unpaid, it is called (1) payment of the cheque (2) drawing of the cheque (3) canceling of the cheque (4) dishonour of the cheque (5) taking of the cheque (4) dishonour of the cheque 12. NEFT means (1) National Electronic Funds Transfer system (2) Negotiated Efficient Fund Transfer system (3) National Efficient Fund Transfer solution (4) Non Effective Fund Transfer system (5) Negotiated Electronic Foreign Transfer system (1) National Electronic Funds Transfer system 13. Upper limit prescribed for RTGS transaction is (1) Rs. 1 lac (2) Rs. 2 lacs (3) Rs. 5 lacs (4) Rs. 50 lacs (5) No upper limit is prescribed (5) No upper limit is prescribed https://www.facebook.com/groups/BANKPOANDCLERK
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14. Distribution of insurance products and insurance policies by banks as corporate agents is known as (1) General Insurance (2) Non-life Insurance (3) Bancassurance (4) Insurance Banking (5) Deposit Insurance (3) Bancassurance 15. In order to attract more foreign exchange the Government of India decided to allow foreign investment in LLP firms. What is full form of ‗LLP‘ as used in this reference? (1) Local Labour Promotion (2) Low Labour Projects (3) Limited Loan Partnership (4) Longer Liability Partnership (5) Limited Liability Partnership (5) Limited Liability Partnership 16. Interest on Saving bank account is now calculated by banks on (1) minimum balance during the month (2) minimum balance from 7th to last day of the month (3) minimum balance from 10th to last day of the month (4) maximum balance during the month (5) daily product basis (5) daily product basis 17. Largest shareholder (in percentage shareholding) of a nationalized bank is (1) RBI (2) NABARD (3) LICI (4) Government of India (5) IBA (4) Government of India 18. When the rate of inflation increases (1) purchasing power of money increases (2) purchasing power of money decreases (3) value of money increases (4) purchasing power of money remains unaffected (5) amount of money in circulation decreases (2) purchasing power of money decreases 19. A centralized databases with online connectivity to branches, internet as well as ATM-network which has been adopted by almost all major banks of our country is own as (1) Investment Banking (2) core Banking (3) Mobile Banking (4) National Banking (5) Specialized Banking (2) core Banking https://www.facebook.com/groups/BANKPOANDCLERK
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20. The Unit Trust of India came into existence in (1) 1960 (2) 1962 (3) 1964 (4) 1966 (5) 1968 (3) 1964 21. Which of the following is example of financial assets? (1) National Saving Certificates (2) Infrastructure Bonds (3) Indira Vikas Patra (4) Krishi Vikas Patra (5) All of the above (5) All of the above 22. Capital market is a market which deals in (1) short-term funds (2) long-term funds (3) gilt-edge securities (4) All of the above (5) None of the above (2) long-term funds 23. Regional Rural Banks fall within supervisory purview of (1) SBI (2) RBI (3) SEBI (4) IRDA (5) None of these (2) RBI 24. IRDA with its headquarters at ……… is the regulatory authority for all insurance companies in India including the Life Insurance Corporation of India. (1) Hyderabad (2) Bengaluru (3) Mumbai (4) Delhi (5) Chandigarh (1) Hyderabad 25. Mutual Funds fall within 7 supervisory purview of (1) SBI (2) RBI (3) SEBI (4) IRDA (5) None of these (3) SEBI 26. Which of the following does not come under the category of Development Banks? (1) Industrial Development Bank of India (2) Small Industries Development Bank of India (3) Industrial Investment Bank of India (4) State Finance Corporation (5) Export-import Bank (5) Export-import Bank 27. Main financial instruments of corporate sector are (1) Shares (ii) Debentures (iii) Public Deposits (iv) Loan from Institutions Select the correct answer by using of the following codes (1) i and ii (2) ii and iii (3) iii and iv (4)1, ii and iv (5) All I, ii, iii and iv (5) All I, ii, iii and iv 28. Financial institutions https://www.facebook.com/groups/BANKPOANDCLERK
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(1) promote savings (2) mobilise savings (3) allocate savings among different users (4) All of the above (5) None of the above (4) All of the above 29. Which of the following is not an / example of primary securities? (1) Bills (2) Bonds (3) Shares (4) Book debts (5) New currency (5) New currency 30. Indian Financial System / comprises of (1) Scheduled Commercial Banks (2) Non-banking Financial Institutions (3) Urban Cooperative Banks (4) All of the above (5) None of the above (5) None of the above 31. The Bombay Stock Exchange was 7 made functional as early as (1) 1870 (2) 1901 (3) 1935 (4) 1951 (5) 1949 (1) 1870 32. The Unit Trust of India come into existence in (1) 1964 (2) 1970 (3) 1975 (4) 1980 (5) 1982 (1) 1964 33. 19 July 1969, how commercial Banks were nationalised? (1) 13 (2) 14 (3) 15 (4) 16 (5) 20 (2) 14 34. New Private Banks are being given licenses since (1) 1991 (2) 1992 (3) 1993 (4) 1995 (5) 2001 ((3) 1993 35. The gilt-edged market refers to the market for (i) Government securities (ii) Semi-government securities (iii) Corporate securities Select the correct answer (1) only i (2) i and ii (3) ii and iii (4) i, ii and iii (5) only iii (2) i and ii 36. First share market in India established in (1) Delhi (2) Mumbai (3) Kolkata (4) Chennai (5) None of these (2) Mumbai 37. Consider the following statements: (i) Securities that have an original maturity that is greater than one year are https://www.facebook.com/groups/BANKPOANDCLERK
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traded in capital markets. (ii) The best known capital market securities are stocks and bonds. Select the correct answer (1) (i) is true and (ii) is false (2) (i) is false and (ii) is true (3) Both are true (4) Both are false (5) None of the above (3) Both are true 38. Consider the following statements: (i) Securities that have an original maturity that is greater than one year are traded in money markets. (ii) The best known money market securities are stocks and bonds. (1) (i) is true and (ii) is false (2) (i) is false and (ii) is true (3) Both are true (4) Both are false (5) None of the above (4) Both are false 39. The primary issuers of capital market securities include (1) the Central Government (2) the local Government (3) corporations (4) the Central and Local Governments and corporations (5) Local Government and corporations (4) the Central and Local Governments and corporations 40. Which of the following is a / characteristic of a capital market instrument? (a) Liquidity (b) Marketability (3) Long maturity (4) Liquidity premium (5) All of the above (5) All of the above 41. Which one of the following is a capital market instrument? (1) A Treasury bill (2) A negotiable certificate of deposit was (3) Commercial paper (4) All of the above (5) None of the above (4) All of the above 42. T-bills are financial instruments initially sold by ________ to raise funds. (1) Commercial Banks (2) the government (3) corporations (4) agencies of the State Government (5) None of the above (2) the government 43. Commercial paper is a short-term security issued by ________ to raise funds. (1) the Reserve Bank of India (2) Commercial Banks (3) large and well-known companies (4) National Stock Exchange https://www.facebook.com/groups/BANKPOANDCLERK
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(5) State and Local Governments (3) large and well-known companies 44. Which of the following statements is true regarding a corporate bond? (1) A corporate callable bond gives the holder the right to exchange it for a specified number of the company‘s common shares (2) A corporate debenture is a secured /‗ bond (3) A corporate indenture is a secured bond (4) A corporate convertible bond gives the holder the right to exchange the bond for a specified number of the company‘s common shares (5) Holders of corporate bonds have voting rights in the company (4) A corporate convertible bond 45. Which one of the following is not a money market instrument? (1) A Treasury bill (2) A negotiable certificate of deposit (3) Commercial paper (4) Treasury bond (5) Repo (4) Treasury bond 46. Money lend for 15 days or more in Inter-bank market is called (1) call money (2) notice money (3) term money (4) All of these (5) None of these (3) term money 47. Money lent for one day is called (1) call money (2) notice money (3) term money (4) All of these (5) None of these (1) call money 48. Specified interest rate on a fixed maturity security fixed at the time of issue is called (1) market rate of interest (2) call rate (3) repo rate (4) coupon rate (5) discount rate (4) coupon rate 49. Lending of scheduled Commercial Banks, on a fortnightly average basis, should not exceed — of their capital fund. (1) 25 per cent (2) 35 per cent (3) 15 per cent (4) 50 per cent (5) None of these (1) 25 per cent 50. A short-term credit investment created by a non- financial firm and guaranteed by a bank to make payment is called (1) bankers acceptance market (2) collateral loan market (3) treasury bill market (4) call money market (5) repo market https://www.facebook.com/groups/BANKPOANDCLERK
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(1) bankers acceptance market 51. Money market securities are (1) short-term (2) low risk (3) very liquid (4) All of the above (5) 1 and 2 (4) All of the above 52. Money market instruments (1) are usually sold in large denominations (2) have low default risk (3) mature in one year or less (4) are characterized by all of the above (5) are characterized by 1 and 2 (4) are characterized by all of the above 53. Which of the following statements about the money market are true? (1) Not all Commercial Banks deal for their customers in the secondary market (2) Money markets are used extensively by businesses both to warehouse surplus funds and to raise short-term funds (3) The single most influential participant in the US money market is the US Treasury Department (4) All of the above are true (5) 1 and 2 of the above are true (5) 1 and 2 of the above are true 54. In the term repo, the term of the loan is greater than (1) 30 days (2) 20 days (3) 60 days (4) 90 days (5) None of these (1) 30 days 55. The money market in India consists of two sectors namely, the organised and the unorganised sector. Which of the following do not fall under unorganised sector? (1) RBI, Commercial Banks and SBI (2) LIC and GIC (3) Unit Trust of India (4) Indigenous Banks (5) None of the above (4) Indigenous Banks 56. Money lent for one day in the money market is known as (1) Notice Money (2) Call Money (3) Term Money (4) All of the above (5) None of the above (2) Call Money 57. Money lent for more than one day but less than 15 days in the money market is known as (1) Notice Money (2) Call Money (3) Term Money (4) All of the above https://www.facebook.com/groups/BANKPOANDCLERK
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(5) None of the above (1) Notice Money 58. Money lent for 15 days or more in inter-bank market is called (1) Notice Money (2) Call Money (3) Term Money (4) All of the above (5) None of the above (3) Term Money 59. Government security that is a claim on the government and is a secure financial instrument which guarantees of both capital and interest is called (1) Coupon security (2) Gilt-edged security (3) Corporate security (4) All of the above (5) None of the above (2) Gilt-edged security 60. Which of the following types of institutions are operate in the call money market only as lender? (1) Commercial Banks (2) Primary Dealers (3) Insurance companies (4) SBI (5) None of the above (3) Insurance companies 61. As per prudential norms of RBI, lending of Scheduled Commercial Banks, on a fortnight average basis, should not exceed…….. per of their capital fund. (1) 25 (2) 30 (3) 35 (4) 15 (5) 20 (1) 25 62. The market for bankers acceptance which or out of trade transactions, both domestic and foreign, is called (1) Mohey market (2) Capital market (3) Bankers acceptance market (4) Repo market (5) Government security market (3) Bankers acceptance market 63. An unsecured loan extended by one corporate to another is called (1) Commercial papers (2) Treasury bill (3) Inter-corporate deposits (4) Certificates of deposits (5) All of the above (3) Inter-corporate deposits 64. Interest is calculated on actual/365 days basis respect of the following products, except one (1) Call money (2) Notice money (3) Term money (4) GOI dated securities (5) None of the above (4) GOI dated securities 65. An institution which accepts deposits, makes business loans, and offers related services is called (1) Saving Bank (2) Commercial Bank (3) Investment Bank (4) Development Bank https://www.facebook.com/groups/BANKPOANDCLERK
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(5) Central Bank (2) Commercial Bank 66. A bank which acts as a banker of other banks is called (1) Saving Bank (2) Commercial Bank (3) Investment Bank (4) Development Bank (5) Central Bank (5) Central Bank 67. Which of the following is/are the function(s) of Exchange Banks? (i) Remitting money from one country to another country. (ii) Discounting of foreign bills. (iii) Buying and selling gold and silver (iv) Helping Import and Export Trade. Select the correct answer (1) i and ii (2) ii and iii (3) iii and iv (4) i, ii and iii (5) All i, ii, iii and iv (5) All i, ii, iii and iv 68. Consumer banks are usually found in (1) India and Pakistan (2) India and UK (3) USA and Germany (4) China and Russia (5) India and China (3) USA and Germany 69 A bank account in which a depositor can deposit his funds any number of times he likes and can also withdraw the same any number of times he wishes is called (1) Fixed Deposit Account (2) Saving Account (3) Current Account (4) Recurring Account (5) Demat Account (3) Current Account 70. Under which type of account a specified amount is deposited every month for a specific period, say, 12, 24, 36 or 60 months? (1) Fixed Deposit Account (2) Saving Account (3) Current Account (4) Recurring Account (5) Demat Account (4) Recurring Account 71. An inter-bank funds transfer system, where funds are transferred as and when the transactions are triggered, is called (1) Internet Banking (2) Mobile Banking (3) Bill Payment Service (4) Real time Gross Settlement (5) None of the above (4) Real time Gross Settlement 72. Which of the following is a primary function of banks? (1) Collection and payment of cheques, rent, interest, etc on behalf of their customers (2) Buying, selling and keeping in safe custody, the securities on behalf of https://www.facebook.com/groups/BANKPOANDCLERK
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their customers (3) Acting as trustees and executors of the property of their customers on their advice (4) Remitting money from one place to the other through bank drafts or mail or telegraphic transfers (5) Accepting deposits (5) Accepting deposits 73. The operative guidelines for banks on Mobile Banking Transactions in India were issued in (1) 2008 (2) 2009 (3) 2010 (4) 2011 (5) 2007 (1) 2008 74. To use smart cards/debit cards/credit cards for the purchase of an item or for payment of a service at a merchant‘s store, the card has to be swiped in a terminal known as (1) Point of Sale terminal (2) Real time terminal (3) Shopping terminal (4) All of the above (5) None of the above (1) Point of Sale terminal 75. The Branding Line of Bank of Baroda is (1) International Bank of India (2) India‘s International bank (3) India‘s Multinational Bank (4) World‘s Local Bank (5) None of the above (2) India‘s International bank 76. The logo of Bank of Baroda is known as (1) Sun of Bank of Baroda (2) Baroda Sun (3) Bank of Baroda‘s Rays (4) Sunlight of Bank of Baroda (5) None of the above (2) Baroda Sun 77. Lot of Banks in India these days are offering M- Banking Facility to their customers. What is the full form of M‘ in ‗M-Banking‘? (1) Money (2) Marginal (3) Message (4) Mutual Fund (5) Mobile (5) Mobile 78. Which of the following is not the part of the Scheduled Banking structure in India? (1) Money Lenders (2) Public Sector Banks (3) Private Sector Banks (4) Regional Rural Banks (5) State Cooperative Banks (1) Money Lenders 79. Section 14 of Banking Regulation Act, 1949 (1) prohibits a banking company from creating a charge upon any unpaid capital of https://www.facebook.com/groups/BANKPOANDCLERK
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the company (2) contains a system of licensing of banks by the RBI (3) provides that the subscribed capital of a banking company should not be less than one-half of its authorised capital (4) All of the above (5) None of the above (1) prohibits a banking company from creating a charge upon any unpaid capital of the company 80. A Bank is under a statutory obligations to honour its customer‘s cheques vide (1) Section 10 of the Banking Regulation Act, 1949 (2) Section 3 of the RBI Act, 1934 (3) Section 31 of the Negotiable Instruments Act, 1881 (4) All of the above (5) None of the above (3) Section 31 of the Negotiable 81. Nationalised Banks have been permitted to offer their equity shares to the public to the extent of 49% of their capital as per amendments made in 1994 in (1) Banking Regulation Act, 1949 (2) Banking Companies (Acquisition & Transfer of Undertakings) Acts 1970/1980 (3) RBI Act, 1935 (4) Nationalisation of Banks Act, 1980 (5) None of the above (2) Banking Companies (Acquisition Transfer of Undertakings) Acts 1970/1980 82. How many banks are presently associates of State Bank of India? (1) Eight (2) Seven (3) Six (4) Five (5) Four (4) Five 83. How many nationalized (1) 14 (2) 15 (3) 19 (4) 20 (5) 6 (3) 19 84. The number of Foreign Banks operating in India is (1) 20 (2) 25 (3) 28 (4) 32 (5) 35 (4) 32 85. BCSBI stands for (1) Banking Codes and Standards Board of India (2) Banking Credit and Standards Board of India (3) Banking Codes and Service Board d India. (4) Banking Credit and Service Board India (5) None of the above (1) Banking Codes and Standards Board of India 86. The main Commercial segregated into (i) Payment System (ii) Financial Intermediation (iii) Financial Services https://www.facebook.com/groups/BANKPOANDCLERK
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(1) (i), (ii), (III) (2) (i) and (iii) (3) (i) and (ii) (4) (ii) and (iii) (5) None of the above (1) (i), (ii), (III) 87. The RBI has prescribed that all SCBs should maintain their SLRs in (1) Dated securities notified by RBI (2) T-Bills of Government of India (3) State Development Loans (4) All of the above (5) None of the above (4) All of the above 88. In case a depositor wishes to withdraw his deposits prematurely, banks (1) do not allow the same till maturity of the deposits (2) charge a penalty for the same do not charge any penalty and allow the same (4) do not allow premature withdrawal (5) None of the above (2) charge a penalty for the same do not charge any penalty 89. What percentage of India‘s population lives in rural areas? (1) 50% to less than 55% (2) 65% to less than 70% (3) 70% to less than 75% (4) 60% to less than 65% (5) None of the above (2) 65% to less than 70% 90. For filing and resolving complaints, the Ombudsman (1) charges a fee of Rs. 500/- (2) does not charge any fee (3) charges a fee of Rs. 1500/- (4) charges a fee of Rs. 1000/ (5) None of the above (2) does not charge any fee 91. In case a depositor is a sole proprietor and holds deposits in the name of the proprietory concern as well as in the individual capacity the maximum insurance cover is available up to (1) Rs.100000 (2) Rs. 200000 (3) Rs. 500000 (4) All of the above (5) None of the above (1) Rs.100000 92. Banks give contracts to third parties in order to manage support services like (1) help desk support (2) credit card processing (3) call support service (4) All of the above (5) None of the above (4) All of the above 93. In case of FCNR(2) Scheme, the period for fixed deposits is (1) as applicable to resident accounts (2) for terms not less than 1 year and not more than 5 years (3) for terms not less than 2 years and not more than 6 years (4) at the discretion of the Bank (5) None of the above (2) for terms not less than 1 year and not more than 5 years 94. The past due debt collection policy of banks generally emphasizes https://www.facebook.com/groups/BANKPOANDCLERK
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on ______ at the time of recovery (1) respect to customers (2) appropriate letter authorising agents to collect recovery (3) due notice to customers (4) All of the above (5) None of the above (4) All of the above 95. According to the risk diversification principle of bank lending, diversification should be in terms of (1) customer base (2) geographic location (3) nature of business (4) All of the above (5) None of the above (4) All of the above 96. Which of the following aspects are outlined by the loan policy of a bank? (1) rating standards (2) lending procedures (3) financial covenants (4) All of the above (5) None of the above (4) All of the above 97. The paid-up capital of Non-Scheduled Bank is less than (1) Rs. 5 lakh (2) Rs.10 Iakh (3) Rs. 12 lakh (4) Rs. 15 lakh (5) None of the above (1) Rs. 5 lakh 98. Scheduled bank ―means a bank (1) incorporated under the Companies Act, 1956 (2) authorized to transact Government business (3) governed by the Banking Regulation Act, l949 (4) included in the Second Schedule to the Reserve Bank of India Act, 1934 (5) All of the above (4) included in the Second Schedule to the Reserve Bank 99. Which of the following conditions must be fulfilled before a bank is included in the Second Schedule to the Reserve Bank of India Act? (1) It must have a paid-up capital and reserves of an aggregate value of not less than Rs. 5 lakh (2) It must satisfy the Reserve Bank of India that its affairs are not being conducted in a manner detrimental to the interests of the depositors (3) It must be a State co-operative bank or a company as defined in the Companies Act, 1956 or an institution notified by the Central Government in this behalf or a corporation or a company incorporated by or under any law in force in any place outside India. https://www.facebook.com/groups/BANKPOANDCLERK
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(4) Only (3) (5) All of the above (5) All of the above 100. Which of the following are the scheduled banks ? (1) State Bank of Mauritius Ltd , (2) HDFC Bank Ltd (3) ICICI Bank (4) None of the above (5) All of the above (5) All of the above 101. A foreign bank is one (1) whose most of the branches are situated outside India (2) in which at least 40% equity shares are held by non-resident Indians (3) which is incorporated outside India (4) All of the above (5) None of the above (3) which is incorporated outside India 102. ‗Branch Banking‘ system is one under which (1) a large bank carries on banking business through a large network of branches spread all over the country (2) the bank‘s huge financial resources enable it to carry on its activities on a large scale throughout the country (3) Only (2) and (3) (4) Both of the above (5) None of the above (4) Both of the above 103. ‗Unit Banking System‘ is that system where an individual bank undertakes the banking business (1) through a single office (2) through a few branches operating within a limited area (3) Only (2) and (3) (4) Both of the above (5) None of the above (4) Both of the above 104. The Unit Banking System is prevalent in (1) Canada (2) Great Britain (3) United States of America (4) India (5) Pakistan (3) United States of America 105. In terms of section 5 (1)(e) of the Banking Regulation Act, 1949, ‗banking company‘ means an company which (1) accepts deposits from the public (2) undertakes lending of money (3) transacts the business of banking India (4) accepts deposits from public a invests the same in trade and India. (5) All of the above (3) transacts the business of banking India 106. Which of the following are Scheduled Banks? (1) The fuji Bank Ltd. (2) IDBI Bank Ltd. https://www.facebook.com/groups/BANKPOANDCLERK
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(3) Centurion Bank of Punjab Ltd. (4) All of the above (5) None of the above (4) All of the above 107. Which of the following bank has been included in the second Schedule to the RBI Act, 1934 with effect from 21st August, 2004 and thus is the latest entrant in Indian Banking as a new generation private sector bank? (1) ICICI Bank Ltd (2) HDFC Bank Ltd (3) Kotak Mahindra Bank Ltd (4) Yes Bank Ltd (5) None of the above (4) Yes Bank Ltd 108. Which of the following statements are correct in regard to foreign banks operating in India ? (1) Foreign banks would be allowed to open more than the existing WTO commitment of 12 branches in a year (2) Foreign banks would be permitted to acquire a controlling stake in a phased manner, but only in those private sector banks which are identified by the Reserve Bank for restructuring (3) The parent foreign bank of a wholly owned subsidiary would continue to hold 100 percent equity in the Indian subsidiary for a minimum prescribed period of operation (4) Only (1) and (2) (5) All of the above (5) All of the above 109. Universal Bank is one which (1) is present universally ie, in all the countries of the world (2) undertakes the work of note-issuing authority, monetary and regulatory authority, banker of the Government and equipment leasing (3) undertakes the functions of a Development Financial Institution as well as a commercial bank (4) All of the above (5) None of the above (3) undertakes the functions of a Development Financial Institution as well as a commercial bank 110. A universal bank may undertake multifarious financial services under one roof, eg, (1) receiving money on current or deposit accounts, and, lending of money for trade, industries, exports, agriculture, etc (2) mortgage financing, project financing, infrastructure lending, asset securitization, leasing, factoring, etc (3) remittance of funds, custodial services, credit/debit cards, collection of cheques/bills, etc https://www.facebook.com/groups/BANKPOANDCLERK
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(4) All of the above (5) None of the above (4) All of the above 111. The commercial banking system in India consists of (1) nationalized banks and private sector banks (2) scheduled and non-scheduled banks (3) regional rural banks, co-operative banks and land development banks (4) All of the above (5) None of the above (2) scheduled and non-scheduled banks 112. Which of the following are the scheduled banks? (1) The Fuji Bank Ltd (2) lDBl Bank Ltd (3) Centurion Bank of Purijab Ltd (4) None of the above (5) All of the above (5) All of the above 113. Lord Krishna Bank Ltd. is a (1) New Private Sector Bank (2) Old Private Sector Bank (3) Public Sector Bank (4) Regional Rural Bank (5) None of the above (2) Old Private Sector Bank 114. What does EBT stands for? (1) Electronic Belated Transfer (2) Electronic Beginners‘ Transaction (3) Electronic Benefit Transfer (4) Electronic Beginning Transaction (5) None of the above (3) Electronic Benefit Transfer 115. Consider the following statements (i) If the beneficiary of a cheque has lost the cheque, he can instruct the paying bank to stop payment of the cheque without waiting for the account holder‘s instructions. (ii) While outsourcing, the only consideration should be cost savings. which among the statements given above is/are correct? (1) Only (i) (2) Only (ii) (3) (i) and (ii) (4) Neither (i) nor (ii) (5) None of the above (4) Neither (i) nor (ii) 116. Telebanking service is based on (1) Virtual banking (2) Online banking (3) Voice banking (4) Core banking (5) None of the above (3) Voice banking 117. Which of the following is not a Public Sector Bank? (1) State of Hyderabad (2) Central Bank of India https://www.facebook.com/groups/BANKPOANDCLERK
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(3) Regional Rural Bank (4) HDFC Bank (5) None of the above (4) HDFC Bank 118. RBI generally reviews the Monetary policy for every (1) three months (2) six months (3) nine months (4) ten months (5) None of the above (1) three months 119.The rate at which the RBI lends shot-term money to the banks (1) PLR (2) CRR (3) Repo Rate (4) Reverse Repo Rate (5) None of the above (3) Repo Rate 120.The Reserve Bank of India (RBI) was nationalized on (1) 1 January, 1949 (2) 1 July, 1955 (3) 19 July, 1969 (4) 15 April, 1980 (5) None of the above (1) 1 January, 1949 121.Which of the following acts govern the RBI functions? (1) RBI Act,1934 (2) Banking Regulation Act, 1949 (3) Companies Act, 1956 (4) Foreign Exchange Regulation Act, 1973 (5) Foreign Exchange Management Act, (1) RBI Act,1934 122. The RBI is not expected to perform the function of (1) the banker to the government (2) accepting deposit from Commercial Banks (3) accepting deposits from general public (4) issuer of currency (5) None of the above (3) accepting deposits from general public 123. Headquarters of Reserve Bank of India is in (1) New Delhi (2) Mumbai (3) Kolkata (4) Chennai (5) Hyderabad (2) Mumbai 124. The first Governor of the Reserve Bank of India from 1 April1935 to 30 June, 1937 was (1) Sir Osborne Smth (2) Sir James Taylor (3) C.D. Deshmukh (4) Sir Benegal Rama Rao (5) KG. Ambegaonkar (1) Sir Osborne Smth 125.22nd and Current Governor of Reserve Bank of India is (1) Manmohan Singh (2) C. Rangarajan https://www.facebook.com/groups/BANKPOANDCLERK
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(3) Bimal Jalan (4) Y.V. Reddy (5) D. Subbarao (5) D. Subbarao 126.Which of the following rates is not decided by RBI? (1) Bank Rate (2) Repo Rate (3) Reverse Repo Rate (4) Prime Lending Rate (5) Cash Reserve Ratio (4) Prime Lending Rate 127 .The Reserve Bank of India was set up on the recommendations of the (1) Narasimham Committee (2) Hilton-Young Commission (3) Mahalanobis Committee (4) Fazal Ali Commission (5) None of the above (2) Hilton-Young Commission 128. Which of the following formulates. implements and monitors the monetary policy? (1) Ministry of Finance (2) RBI (3) SBI (4) ICICI Bank (5) None of the above (2) RBI 129.Which of the following is th central banking institution India? (1) State Bank of India (2) Ministry of Finance (3) Reserve Bank of India (4) Finance Commission of India (5) None of the above (3) Reserve Bank of India 130. The Reserve Bank of India had divested its stake in State Bank of India to (1) IDBI Bank (2) LIC (3) ICICI Bank (4) Government of India (5) None of the above (4) Government of India 131. At Present the RBI holds one per cent of shareholding in? (1) State Bank of India (2) National Housing Bank (3) State Bank of Hyderabad (4) National Bank for Agriculture and Rural Development (NABARD) (5) None of the above (4) National Bank for Agriculture and Rural Development 132. The number of regional offices of RBI is (1) 20 (2) 21 (3) 22 (4) 23 (5) None of these (3) 22 133. In India, the RBI prescribes the minimum SLR level for Scheduled Commercial Banks in India in specified assets as a percentage of Bank‘s (1) Net Demand and Time Liabilities (2) Demand Liabilities (3) Time Liability (4) None of the above (5) All of the above https://www.facebook.com/groups/BANKPOANDCLERK
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(1) Net Demand and Time Liabilities 134 . CRR refers to the share of that banks Rural have to maintain with RBI of their net demand and time liabilities. 1) Liquid cash (2) forex reserves (3) gold (4) liquid cash (5) None of the above Show Answer 135.The RBI has adopted _____ Model in which mobile banking and is promoted through business correspondents of banks. 1) Bank Led (2) Band Mobile (3) Mobile (4) All of these S) None of these (4) All of these 136. Services offered to government departments include all the above except (1) payments of salaries and pensions (2) distributing RBI bonds to government departments (3) direct and indirect tax collections (4) remittance facilities (5) None of the above (2) distributing RBI bonds to government departments 137. Which of the following is/are known as Banker‘s Bank? (1) SBI (2) NABARD (3) RBI (4) All of these (5) None of these (3) RBI 138. Which of the following is the central bank of the country? (1) RBI (2) SBI (3) RRB (4) NABARD (5) None of these (1) RBI 139 . RBI was established on (1) April 1, 1935 (2) March 1, 1935 (3) April 1, 1934 (4) March 1, 1934 (5) None of these (1) April 1, 1935 140. Which of the following is/are functions of the RBI? (I) Acts as the currency authority (ii) Controls money supply and credit (iii) Manages foreign exchange (iv) Serves as a banker to the government (1) (i) and (Ill) (2) (ii) and (iii) (3) (i), (ii) and (iii) (4) (i), (ii), (iii) and (iv) (5) None of these (4) (i), (ii), (iii) and (iv) 141. Central Bank (1) creates (2) controls (3) restricts (4) all of these (5) None of these (2) controls https://www.facebook.com/groups/BANKPOANDCLERK
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142 credit investment. (1) Dear (2) Cheap (3) Restricted (4) Green (5) None of these (2) Cheap 143. Quantitative instrument of RBI can be (1) bank rate policy (2) cash reserve ratio (3) statutory liquidity ratio (4) All of the above (5) None of the above (4) All of the above 144. Objective of monetary policy of RBI is to (1) control inflation (2) discourage loarding of commodities (3) encourage flow of credit into neglected sector (4) All of the above (5) None of the above (4) All of the above 145. When RBI is lender of last resort, what does it mean? (1) RBI advances necessary credit against eligible securities (2) Commercial Banks give fund to the RBI (3) RBI advances money to public whenever there is any emergency (4) All of the above (5) None of the above (1) RBI advances necessary credit against eligible 146. When RBI acts as a banker to the government, what does it do? (1) RBl keeps bank accounts of the government (2) RBI carries out government transactions (3) RBI advises the government on all financial and monetary matters (4) All of the above (5) None of the above (4) All of the above 147. The merit of issuing notes with RBI can be seen is (1) uniformity (2) stability in currency (3) control of credit (4) All of the above (5) None of the above (4) All of the above 148. Which of the following is not an objective of financial sector reform in India? (1) Creating an efficient, productive and profitable financial sector industry (2) Preparing the financial system for increasing international competition (3) Opening the external sector in a calibrated fashion (4) Reducing the fiscal deficit (5) Promote the maintenance of financial stability even in the face of domestic and external environment (4) Reducing the fiscal deficit 149. The Narsimham Committee-I was set up in (1) 1990 (2) 1991 (3) 1992 https://www.facebook.com/groups/BANKPOANDCLERK
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(4) 1998 (5) 2000 (2) 1991 150. The Narsimham Committee-I was set up to suggest some recommendations for improvement in the (1) efficiency and productivity of the financial institution (2) banking reform process (3) export of IT sector (4) fiscal reform process (5) None of the above Show Answer 151. The Narsimham Committee-Il was set up to suggest some recommendations for improvement in the (1) efficiency and productivity of the financial institution (2) banking reform process (3) export of IT sector (4) fiscal reform process (5) None of the above (2) banking reform process 152. The Narsimham Committee, 1991 has given which of the following major recommendations (i) Reduction in the SLR and CRR. (ii) Phasing out Directed Credit Programme. (iii) The determination of the interest rate should be on the grounds of market forces such as the demand for and the supply of fund. (iv) The actual numbers of public sector banks need to be reduced. (v) ‗Narrow Banking Concept‘ where weak banks will be allowed to place their funds only in short-term and risk free assets. Select the correct answer using the following codes (1) i,ii and v (2) i, iii, iv and v (3) i,ii,iii and v (4) ii, iii, iv and v (5) i, ii, iii and iv (5) i, ii, iii and iv 153. Which of the following is not correct about the recommendations of Narsimham Committee Report, 1998? (1) Reduced CRR and SLR (2) Deregulation of Interest Rate (3) Establishment of the ARE Tribunal (4) Fixing Prudential Norms (5) Capital Adequacy Norms (3) Establishment of the ARE Tribunal 154. Basel I, which was issued in 1988, focuses on the (1) capital adequacy of financial institutions (2) improvement of the banking sectors ability to deal with financial and economic stress https://www.facebook.com/groups/BANKPOANDCLERK
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(3) technology up gradation (4) training of banking staff (5) professionalism in banking (1) capital adequacy of financial institutions 155. In 1991, SLR was as high as (1) 25% (2) 30% (3) 38.5% (4) 39.5% (5) 40% (3) 38.5% 156. Narsimham Committee recommended to reduce SLR and CRR to (1) 25% and 3.5% respectively (2) 24% and 3.5% respectively (3) 25% and 3% respectively (4) 20% and 5% respectively (5) 25% and 5% respectively (1) 25% and 3.5% 157. Which of the following is not a recommendation of the Narsimham Committee, 1991? (1) Reduction of CRR and SLR (2) Phasing out directed credit programme (3) Reduction of Capital Adequacy Ratio (4) Establishment of ARE Fund (5) Autonomy to Public Sector Bank (3) Reduction of Capital Adequacy Ratio 158. Which of the following guidelines were issued by Reserve Bank of India in January 1993 for the entry of Private Sector Banks in the wake of Narasimham Committee recommendation (1) The new bank, upon being granted license under the Banking Regulation Act by RBI, Shall be registered as a public limited company under the Companies Act, 1956 (2) Its inclusion in the Second Schedule to the Reserve Bank of India Act, 1934 shall be sunject to Reserve Bank‘s decision (3) Preference would be given to those banks the headquarters of which are proposed to be located in the centre which does not have the headquarters of any other bank (4) (1) and (3) (5) All of these (5) All of these 159. The RBI has prescribed that a new Private Sector Bank (1) shall be subject to prudential norms in regard to income recognition, asset classification and provisioning, capital adequacy, etc. https://www.facebook.com/groups/BANKPOANDCLERK
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(2) shall have to observe priority sector lending targets as applicable to other domestic banks (3) will be required to open rural and semi-urban branches also as may be laid down by RBI (4) None of the above (5) All of above (5) All of above 160. A new Private Sector Bank (1) would be governed by existing branch licensing policy where by banks could open branches including at urban/ metro centres without prior approval of RBI once capital adequacy and prudential accounting norms were satisfied (2) will be governed by the provisions of the RBI Act, 1934 the Banking Regulation Act, 1949 and other relevant statutes (3) would be subject to the directives, guidelines and advices given by the Reserve Bank of India (4) None of the above (5) All of the above (5) All of the above 161. To create a strong and competitive banking system, reform measures were initiated in early 1990s. The thrust of these reforms was on (1) increasing operation efficiency (2) strengthening supervision over banks (3) developing technological and institutional infrastructure (4) All of the above (5) None of the above (4) All of the above 162. What does EBT stands for? (1) Electronic Belated Transfer (2) Electric Beginners Transaction (3) Electronic Benefit Transfer (4) Electronic Beginning Transaction (5) None of the above (3) Electronic Benefit Transfer 163. On the recommendations of which of the following committee Regional Rural Banks were established? (1) Tarpore Committee (2) Narasimham Committee (3) Karmakar Committee (4) Kelker Committee (5) Jha Committee (2) Narasimham Committee 164. RRBs were set up on (1) 1975 (2) 1985 (2) 1991 (4) 2001 (5) 1965 (1) 1975 165. The total authorized capital of RRBs was originally fixed at 1 crore which has since been raised to (1) Rs. 2crore (2) Rs. 3 crore (3) Rs. 5 crore https://www.facebook.com/groups/BANKPOANDCLERK
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(4) Rs. 7 crore (5) Rs. 10 crore (3) Rs. 5 crore 166. At present, the formula for subscription to RRBs capital has been fixed at (1) Central Government 50%, State Government 35% and Sponsor Bank 15% (2) Central Government 60%, State Government 20% and Sponsor Bank 20% (3) Central Government 30%, State Government 30% and Sponsor Bank 40% (4) Central Government 35%, State Government 35% and Sponsor Bank: 30% (5) Central Government 50%, State Government 25% and Sponsor Bank: 25% (2) Central Government 60%, State Government 20% and 167. Central Government‘s contribution towards the capital of RRBs is made through (1) NABARD (2) RBI (3) SBI (4) Central Cooperative Bank (5) State Cooperative Bank (1) NABARD 168. The Sponsor Bank helps and aids the RRB sponsored by it by (i) Subscribing to its share capital. (ii) Training its personnel. (iii) Providing managerial and financial assistance during the first five years or extended period. Select the correct answer by using the following codes (1 ) i and ii (2) ii and iii (3) i and ii (4) i, ii, and iii (5) None of these (4) i, ii, and iii 169. The Sponsor Banks are empowered (1) to monitor the progress of RRBs (2) to conduct inspection and internal audit (3) to suggest corrective measures (4) All of the above (5) None of the above (4) All of the above 170. Each of the RRBs covers districts ranging from (1) 1 to 15 (2) 2 to25 (3) 3 to 25 (4) 2 to 15 (5) 1 to 5 (2) 2 to25 171. The main resources of RRBs are (1) share capital (2) deposits from the public (3) borrowing from Sponsor Banks (4) refinance from NABARD (5) All of the above (5) All of the above https://www.facebook.com/groups/BANKPOANDCLERK
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172. RRBS are refinanced at (1) 2% below the bank rate (2) 1% below the bank rate (3) 2% below the repo rate (4) 1% below the repo rate (5) repo rate (1) 2% below the bank rate 173. RRBs are owned by (1) Central Government (2) State Government (3) Sponsor Bank (4) jointly by all of the above (5) None of the above (4) jointly by all of the above 174. The main resources of RRBs are (i) share capital. (ii) deposits from the public. (iii) borrowing from Sponsor Banks. (iv) refinance from NABARD. Select the correct answer (1) i and ii (2) i, ii and iii (3) iii and iv (4) ii, iii and iv (5) i, ii, iii and iv (5) i, ii, iii and iv 175. The number of directors on the boards of RRBs has been raised to (1) 14 (2) 15 (3) 16 (4) 17 (5) 18 (2) 15 176. The issued/paid-up capital of a Regional Rural Bank should be (1) Rs. 60 lac (2) minimum Rs. 25 lac and maximum Rs. 100 lac (3) Rs. 80 lac (4) Rs. 90 lac (5) None of the above (5) None of the above 177. Under which category will Ofl classify Regional Rural Banks? (1) Scheduled Commercial Banks (2) Co-operative banks (3) Private sector banks (4) Development banks (5) None of the above (1) Scheduled Commercial Banks 178. Paid-up share capital of Region Rural Bank is contributed by (1) Central Government only (2) State Government only (3) Central Government, State Government and the sponsor commercial bank in the ratio of 50: 15: 35 respectively (4) NABARD, the concerned Government and the sponsor commercial bank in the ratio of 60:20 :20 respectively (5) All of the above (2) State Government only 179. Regional Rural Banks are empowered to transact the business of banking as defined under https://www.facebook.com/groups/BANKPOANDCLERK
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(1) Banking Regulation Act, 1949 (2) Negotiable Instruments Act, 1881 (3) Regional Rural Banks Act, 1976 (4) The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5) None of the above (1) Banking Regulation Act, 1949 180. RRBs are permitted to undertake corporate agency business, without risk participation, for distribution of all types of insurance products, including health and animal insurance subject to the condition that (1) The bank should comply with the Insurance Regulatory and Development Authority (IRDA) regulations for acting as ‗composite corporate agent‘ (2) The bank should not adopt any restrictive practice of forcing its customers to go in only for a particular insurance company in respect of assets financed by the bank (3) The risks, if any, involved in insurance agency should not get transferred to the business of the bank (4) Only (2) and (3) (5) All of the above (5) All of the above 181. Regional Rural Banks are managed by (1) Reserve Bank of India (2) a board of directors (3) the sponsor bank (4) the State Government (5) All of the above (2) a board of directors 182. Deposits with Regional Rural Banks are insured by (1) Life Insurance Corporation of India (2) General Insurance Corporation (3) Deposit Insurance and Credit Guarantee Corporation (4) None of the above (5) All of the above (3) Deposit Insurance and Credit Guarantee Corporation 183. For opening a new branch, a Regional Rural Bank requires (1) permission of NABARD (2) permission of Director, Institutional Finance (3) RBI license (4) All of the above (5) approval of DRDA (3) RBI license 184. Regional Rural Banks are classified as (1) scheduled commercial banks (2) subsidiaries of the sponsor banks (3) subsidiaries of NABARD (4) All of the above (5) None of the above (1) scheduled commercial banks 185. For the purpose of Income Tax Act, 1961, the regional rural banks are treated as https://www.facebook.com/groups/BANKPOANDCLERK
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(1) scheduled commercial banks (2) non-scheduled banks (3) nationalised banks (4) co-operative banks (5) None of the above (4) co-operative banks 186. On the current account balances maintained by the Regional Rural Banks with them, the commercial banks may (1) pay interest up to 9 per cent (2) waive incidental charges (3) pay interest as applicable to savings accounts (4) pay interest at such rates as may be mutually agreed to (5) All of the above (4) pay interest at such rates as may be mutually agreed to 187. All regional rural banks (RRBs) are required to maintain their entire statutory liquidity ratio (SLR) in (1) government and other approved securities (2) current accounts with sponsor banks (3) time deposits with sponsor banks (4) gold holdings only (5) All of the above (1) government and other approved securities 188. Which of the following statements about Regional Rural Banks are correct? (1) Sponsor banks‘ travellers cheques can be issued by RRBs (2) RRBs can enter into arrangements with the sponsor banks for providing remittance facilities to its customers (3) Where RRBs can afford the investment, they can install lockers also (4) Only (1) and (2) (5) All of the above (5) All of the above 189.Reserve Bank has permitted RRBs for opening/ maintaining Non-Residents (Ordinary /External) accounts in rupees and for acceptance of FCNR (B) deposits subject to the condition that (1) The bank should have a positive net-worth and earned net profit during the preceding year (2) The bank should not have defaulted in maintenance of CRR/SLR requirements on more than three occasions during the preceding two years (3) Net NPA level of the bank should not exceed five per cent of the outstanding advances as on March 31 of the preceding year (4) Only (2) and (3) (5) All of the above (5) All of the above 190. The Regulatory Authority Regional Rural Banks is (1) Sponsor bank (2) Central Government (3) State Government (4) RB land NABARD (5) All of the above https://www.facebook.com/groups/BANKPOANDCLERK
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(4) RB land NABARD 191. Which of the following are the recommendations of the Internal Group (Chairman : Shri A V Sardesai) set up by RBI in regard to strengthening and viability of RRBs? (1) merger/amalgamation of RRBs to improve operational viability (2) change of sponsor banks to enhance competitiveness. (3) governance and management and scope for improving profitability (4) None of the above (5) All of the above (5) All of the above 192. Which of the-following measure have been taken to enlarge resources available to RRI3s? (1) Lines of credit at a reasonable rate of interest from sponsor banks (2) Access to inter-RRB term money/ borrowings (3) Access to repo / CBLO markets (4) All of the above (5) None of the above (4) All of the above 193. With a view to increase their resource base, RRBs have been permitted to (1) issue of credit/debit cards and setting-up of ATMs (2) open Currency Chests (3) handle pension and other government business as sub- agents of those banks which are authorised to conduct government business (4) Only (1) and (2) (5) All of the above (5) All of the above 194. Which of the following conditions are required to be fulfilled by a Regional Rural Bank to be eligible for opening of new branches? (1) It should not have defaulted in maintenance of SLR and CRR during the last two years (2) It should be making operational profits (3) Its net worth should show improvement and its net NPA ratio should not exceed 8 per cent (4) Only (1) and (2) (5) All of the above (5) All of the above 195. Co-operative Banks in India are registered under (i) Banking Laws (Cooperative Societies) Act, 1965. (ii) Banking Regulations Act, 1949. (iii) Companies Act, 1956. Select the correct answer using the following codes (1) only i (2) i and ii (3) ii and iii (4) i, ii and iii (5) i, and iii (1) only i 196. Co-operative Development Bank was set up by (1) NABARD (2) RB! (3) SB! https://www.facebook.com/groups/BANKPOANDCLERK
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(4) Central Government (5) None of the above (1) NABARD 197. Co-operative banks in India do not finance rural areas under (1) Farming (2) Cattle (3) Milk (4)Small scale units (5) Personal finance (4)Small scale units 198. Which of the following is not a negotiable instrument? (2) semi-negotiable instrument? (1) Promissory note (2) Bill of exchange (3) Cheque (4) Bank Draft (5) Share certificate (4) Bank Draft 199. Those instruments which can be transferred by endorsement and delivery, but the transferee does not get a better title than that of the transferor is called (1) negotiable instruments (2) semi-negotiable instruments (3) non-negotiable instruments (4) All of the above (5) None of the above (2) semi-negotiable instruments 200. Transfer of any instrument to another person by signing on its back or face or on a slip of paper attached to it is known as : (1) promissory note (2) bill of lading (3) bill of exchange (4) endorsement (5) None of the above (4) endorsement 201. Which of the following is not a prerequisite for a promissory note? (1) drawn on a specified banker (2) It should be unconditional (3) It should be in writing (4) It should be made and signed by the debtor (5) It should be payable in the currency of the country (1) drawn on a specified banker 202. A bill of exchange in which a bank orders its branch or another bank, as the case may be, to pay a specified amount to a specified person or to the order of the specified person is called (1) cheque (2) bank draft (3) promissory note (4) bill of exchange (5) None of the above (2) bank draft 203. Which of the following is not a party of bill of exchange? (1) The Drawer (2) The Drawee (3) The Payee (4) The Endorser (5) None of the above (4) The Endorser 204. Which of the following is/are the right(s) of customer towards his banker? https://www.facebook.com/groups/BANKPOANDCLERK
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(1) To receive a statement of his account from a banker (2) To sue the bank for any loss and damages (3) To sue the banker for not maintaining the secrecy of his account (4) All of the above (5) None of the above (4) All of the above 205. When an endorser waives presentment and notice of dishonour he increases his liability. His endorsement is: (1) facultative endorsement (2) qualified endorsement (3) alternative endorsement (4) restrictive endorsement (5) None of the above (1) facultative endorsement 206. All of the following are examples of Quasi Negotiable Instruments, under the Negotiable Instrument Act, 1881, except (1) Dividend Warrants (2) Share Warrants (3) Bearer Debentures (4) Promissory Note (5) None of the above (4) Promissory Note 207. Section 131 of Negotiable Instrument Act, 1881 extends protection to the (1) Paying Banker (2) Collecting Banker (3) Advising Banker (4) Issuing Banker (5) All of the above (2) Collecting Banker 208. Which of the following is not considered as negotiable instrument under the Negotiable Instruments Act, 1881? (1) Bill of exchange (2) Promissory note (3) Share certificate (4) Cheque payable to bearer (5) Cheque with ‗not negotiable‘ crossing (3) Share certificate 209. Which of the following is not considered as an instrument negotiable by custom or usage? (1) Delivery orders for goods (2) Railway receipts for goods (3) Hundi (4) Government promissory notes (5) Cheques (5) Cheques 210. Under the Negotiable Instrument Act, 1881, an instrument which is incomplete in some respects, is called a/an (1) Foreign instrument (2) Inland instrument (3) Inchoate instrument (4) Ambiguous instrument (5) Fictitious instrument https://www.facebook.com/groups/BANKPOANDCLERK
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(3) Inchoate instrument 211. Which of the following is an example of ‗restrictive crossing‘? (1) Not Negotiable (2) State Bank of India (3) A/c Payee (4) Company (5) Two transverse parallel lines simply drawn across the face of the cheque (3) A/c Payee 212. Which of the following is not a payment in due course? (1) Payment made in accordance with the apparent tenor of the instrument (2) A payment is made on an instrument before the date of maturity (3) Payment is made to a person who is in possession of the instrument either as a holder or a person authorised to receive payment on behalf of holder (4) Payment made in good faith and without negligence (5) Payment made to a person in possession of an instrument payable to bearer or one that is, endorsed in blank (2) A payment is made on an instrument before the date of maturity 213. When a bill is drawn, accepted or indorsed for consideration, it is called a/an (1) Accommodation bill (2) Genuine trade bill (3) Escrow (4) Ambiguous instrument (5) Inchoate instrument (2) Genuine trade bill 214. Which of the following is a prerequisites for transfer of a negotiable instrument? (1) Crossing (2) Acceptance (3) Noting with a Notary (4) Blank indorsement (5) Mere delivery or indorsement and delivery (5) Mere delivery or indorsement and delivery 215. Which of the following statements is correct about promissory note? (1) It need not be in writing (2) An implied promise is enough to constitute a valid promissory note (3) The promise to pay must be definite and unconditional (4) The name of the pyee need not be mentioned (5) The payment can be in kind (3) The promise to pay must be definite and unconditional 216. The legal relationship between a bank and its customer is a kind of (i) Debtor and Creditor (ii) Principal and Agent (iii) Pledgor and Pledgee (iv) Mortgagor and Mortgagee Select the correct answer by using the following codes (1) i and ii (2) i, iii and iv (3) i, ii, iii and iv (4) i and ii (5) i, ii and iii (3) i, ii, iii and iv 217. Since, acceptance of deposits and granting of loans are the two general https://www.facebook.com/groups/BANKPOANDCLERK
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functions of a bank, the relationship arising out of these two main activities is known as (1) principal and agent relationship (2) financer and finance relationship (3) bailor and bailee relationship (4) general relationship (5) specific relationship (4) general relationship 218. Which of the following is not an obligation of bank towards its customer? (1) Pay bills as per the instructions of the customer (2) Act as per the directions given by the customer (3) Submit periodical statements, i.e., informing customers of the state of the account (4) Not to set off a debt owed to him by a creditor from the credit balances held in other accounts of the borrower (5) Maintain secrecy of accounts (4) Not to set off a debt owed to him by a creditor from the 219. Which of the following statement is not correct regarding a minor? (1) A minor is a person who has not attained the age of 18 (2) Minor does not have legal capacity to enter into a contract (3) A current account in the name of minor can be opened when guardian of the minor operates this account (4) A minor‘s account should never be allowed to be overdrawn (5) In the event of death of a minor, the money will be payable to the guardian (3) A current account in the name of minor can be opened 220. Money deposited with the bank becomes a debt due (1) from the banker (2) from the customer (3) to the customer (4) Either 1 or 2 (5) None of the above (2) from the customer 221. KYC means (1) Know your customer very well (2) Know your existing customer very well (3) Know your prospective customer very well (4) Satisfy yourselves about the customer‘s identity and activities (5) All of the above (4) Satisfy yourselves about the customer‘s identity and 222. Mahesh and Suresh are friends aged 14 and 15 respectively. They want to open a joint account in your bank. You will (1) allow them to open a joint account to be operated jointly (2) allow them to open a joint account with operating instructions either or survivor (3) allow them to open a joint account with operating instructions former or https://www.facebook.com/groups/BANKPOANDCLERK
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survivor (4) allow them to open a joint account with operating instructions any one or survivor (5) None of the above (1) allow them to open a joint account to be operated jointly 223. NABARD was set up as an apex Development Bank with a mandate for facilitating credit flow for promotion and development of (1) agriculture (2) small-scale industries (3) cottage and village industries (4) handicrafts and other rural crafts (5) All of the above (5) All of the above 224. On the recommendation of which committee NABARD was established? (1) The Committee to Review Arrangements for Institutional Credit for Agriculture and Rural Development (2) Narshimham Committee (3) Chelliaha Committee (4) Kelkar Committee (5) None of the above (2) Narshimham Committee 225. NABARD was set up with an initial capital of ‗Rs. 100 crore, which was enhanced to (1) Rs. 1,000 crore (2) Rs. 2000 crore (3) Rs. 3000 crore (4) Rs. 4000 crore (5) Rs. 5000 crore (1) Rs. 1,000 crore 226. On the recommendations of which committee, the NABARD was established? (1) Shivaraman Committee (2) Basel Norms (3) Narasimham Committee (4) All of the above (5) None of the above (1) Shivaraman Committee 227. Which of the following statements is not correct about NBFCs? (1) An NBFC cannot accept demand deposits (2) These institutions trade in the capital market in a variety of assets and liabilities (3) An NBFC can issue cheques drawn on itself (4) Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available for NBFC depositors (5) NBFIs act as brokers of loanable funds and in this capacity they intermediate between the ultimate saver and the ultimate investor. (3) An NBFC can issue cheques drawn on itself 228. The working and operations of NBFCs are regulated by (1) SEBI (2) RBI (3) Finance Ministry, Gol https://www.facebook.com/groups/BANKPOANDCLERK
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(4) IRDA (5) None of the above (2) RBI 229. Which of the following is a kind of non-banking financial institutions? (1) Equipment leasing company (2) Hire purchase company (3) Loan company (4) Investment company (5) All of the above (5) All of the above 230. Which of the following is not correct about the acceptance of deposits by the NBFCs? (1) They are allowed to accept/renew public deposits for a minimum period of 12 months and maximum period of 60 months (2) They cannot accept deposits repayable on demand (3) They should have minimum investment grade credit rating (4) Their deposits are not insured (5) The repayment of deposits by NBFCs is guaranteed by RBI (5) The repayment of deposits by NBFCs is guaranteed by RBI 231. Any financial intermediary whose principal business is that of buying and selling of securities is called (1) equipment leasing company (2) hire purchase company (3) loan company (4) investment company (5) None of the above (4) investment company 232. Life Insurance in its modern form came to India from England in the year (1) 1818 (2) 1896 (3) 1905 (4) 1907 (5) 1919 (1) 1818 233. Which of the following statements about insurance business in India is not correct? (1) Oriental Life Insurance Company was the first life insurance company on Indian Soil (2) Bombay Mutual Life Assurance Society was the first Indian life insurance company (3) The Life Insurance Companies Act and the Provident Fund Act were passed 1949 (4) The Insurance Regulatory and Development Authority was established in the year 1999 (5) From March 21, 2003 GIC ceased to be a holding company of its subsidiaries (3) The Life Insurance Companies Act and the Provident 234. In which year had the Insurance Regulatory and Development Authority come into force? (1) 1999 (2) 2000 (3) 2001 (4) 1991 (5) 1993 https://www.facebook.com/groups/BANKPOANDCLERK
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(2) 2000 235. By taking out insurance cover an individual (1) reduces the cost of an accident (2) reduces the risk of an accident (3) transfers the risk to someone else (4) converts the possibility of large loss to certainty of a small one (5) reduces the certainty of major loss (3) transfers the risk to someone else 236. Which of the following is an example of NBFCs? (1) Unit Trust of India (2) Life Insurance Corporation (3) General Insurance Corporation (4) All of the above (5) None of the above (4) All of the above 237. A company which pools money from investors and invests in stocks, bonds, shares is called (1) A bank (2) An insurance company (3) Bank assurance (4) Mutual fund (5) None of the above (4) Mutual fund 238. Bank assurance is (1) an insurance scheme to insure bank deposits (2) an insurance scheme to insure bank advances (3) a composite financial service offering both bank and insurance products (4) a bank deposit scheme exclusively for employees of insurance companies (5) None of the above (3) a composite financial service offering both bank 239. Which was the first mutual fund started in India? (1) SBI Mutual Fund (2) Indian Bank Mutual Fund (3) Kotak Pioneer Mutual Fund (4) Unit Trust of India (5) None of the above (4) Unit Trust of India 240. The regulator of mutual fund in India is (1) FIMMDA (2) AMFI (3) RBI (4) SEBI (5) None of these (4) SEBI 241. FIMMDA‘s general principles and procedures are applicable to (1) Fixed income markets (2) Money markets (3) Derivative markets (4) All of the above (5) None of the above (4) All of the above 242. Which is the principal institution for promotion, financing and development of small scale industries in the country? https://www.facebook.com/groups/BANKPOANDCLERK
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(1) RBI (2) SBI (3) IDBI (4) SIDBI (5) None of these (4) SIDBI 243. The UTI was established in (1) 1956 (2) 1964 (3) 1972 (4) 1976 (5) None of these (2) 1964 244. Which of the following mobiise/s the savings of the public to specifically invest in the industrial securities? (1) UTI (2) LIC (3) GIC (4) All of these (5) None of these (4) All of these 245. Whcih of the following is/are ‗Term Deposits‘? (1) Fixed deposits (2) Re-investment deposits (3) Recurring deposits (4) None of the above (5) All of the above (1) Fixed deposits 246. Which of the following is not correct about Non- Banking Financial Companies (NBFCs)? (1) NBFC can not accept demand deposits (2) NBFC is not a part of the payment and settlement system (3) NBFC can issue cheques drawn on itself (4) NBFCs are fast emerging segment of Indian financial system (5) None of these (3) NBFC can issue cheques drawn on itself 247. The working and operations of NBFCs are regulated by (1) SBl (2) RBI (3) Finance Ministry (4) All of these (5) None of these (2) RBI 248. Which of the following is not correct about Development Banks in India? (1) The Development Banks do not seek or accept deposits from the public (2) They provide short term finance (3) The Development Banks promote economic development by promoting investment and enterprise (4) Development Banks are those banks engaged in the promotion and development of industry, agriculture, exports and other key sectors. (5) All of the above (2) They provide short term finance 249. Which of the following is the first Development Bankof India? (1) Industrial Finance Corporation of India https://www.facebook.com/groups/BANKPOANDCLERK
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(2) State Finance Corporation (3) Industrial Credit and Investment Corporation of India (4) State Industrial Development Corporations (5) National Bank for Agriculture and Rural Development (1) Industrial Finance Corporation of India 250. The Small Industries Development Bank of India was established in (1) 1975 (2) 1980 (3) 1982 (4) 1989 (5) 1990 (4) 1989 251. The erstwhile Industrial Reconstruction Bank of India (IRBI) is now known as (1) Industrial Finance Corporation of India (2) Industrial Credit and Investment (3) Corporation of India Industrial Development Bank of India (4) State Industrial Development Corporations (5) Industrial Investment Bank of India LTD (5) Industrial Investment Bank of India LTD 252. National Housing Bank was established in (1) 1975 (2) 1980 (3) 1985 (4) 1988 (5) 1990 (4) 1988 253. Industrial Development Bank of India was established as a subsidiary of (1) Reserve Bank of India (2) State Bank of India (3) Industrial Credit and Investment Corporation of India (4) State Industrial Development Corporations (5) Small Industries Development Corporation Bank of India (SIDBI) was established in 1989 (1) Reserve Bank of India 254. Which of the following is not an objectives of SIDBI? (1) To initiate the process of modernisation and technical upgradation of the present units (2) To facilitate the marketing of the products of the small scale sector in India and abroad (3) to give loans both to the private as well as public sector undertakings in the field of commodity production, mining and services such as hotels and transport (4) to provide special aid to labour intensive industries to enable them to provide more employment (5) To provide refinancing factoring, leasing services to the small sector (3) to give loans both to the private as well as public sector 255. ‗Development Banks‘ are https://www.facebook.com/groups/BANKPOANDCLERK
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(1) branches of Commercial Banks, whether in private or public sector, situated in rural areas for upliftment of weaker sections of the society (2) financial institutions which provide long term finance to industries (3) land development banks which provide developmental financing to agriculture (4) (2) and (3) (5) None of the above (2) financial institutions which provide long term financ 256. SEBI was established in (1) 1993 (2) 1992 (3) 1988 (4) 1990 (5) 1994 (2) 1992
QUESTION & ANSWER-2 BANKING AWARENESS 1.Maximum punishment for melting or destruction of coins would be increased from 5 years to ……………..years of imprisonment? 1. 4 2.9 3.7 4.10 5.16 2.The central government reduced its stake in State Bank of India from 55 percent to ………..percent ? 1. 49 2.40 3.15 4.25 5.51 3. ………….authorizes the credit limit to the National Co-operative Marketing Federation? 1. NABARD 2. RBI 3. SEBI 4. SBI 5. None 4.. Increase in deposit rate results …………? 1. lower savings 2. lower investments 3. increase bank branches https://www.facebook.com/groups/BANKPOANDCLERK
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4. increase savings 5. None 5. Increase in deposit rate results ……….? 1. decrease the credit growth 2. increase the Agriculture default payments 3 decrease the customer base 4. increase the credit growth 5. all of above 6.Raise in inflation rate leads to decline in ……………? 1. interest rate 2. raise in the deposits in the banks 3. decrease the real interest rate 4. raise the credit growth by banks 5. None 7.Difference between interest earned and interest paid is called……..? 1. Gross Interest Income 2. Paid Interest Income 3. Free Interest Income 4. Net Interest Income 5. All of above 8.Express Remit is the brand name remittance facility of …………..? 1. SBH 2. Allahabad Bank 3. Repco Bank 4. UBI 5. SBI 9.Rs. 1000 can be withdrawn from the Point of Sales Terminals ( POS) as per the order of RBI. Which is the first bank to introduce this facility? 1. SBI 2. SBH 3. UBI 4. ICICI 5. HDFC 10.Free Collateral loan up to Rs. …lakh provided to SME? 1. 5 2.10 3.9 4.5 6.15 11.………………………is the largest stake holder in the National securities depository Limited? https://www.facebook.com/groups/BANKPOANDCLERK
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1. SBI 2. Coporation Bank 3. Syndicate Bank 4.IDBI 5. ICICI 12. Recently RBI advised the banks to reduce the Net Interest Margin comedown to see the double digit growth. What is meant by it………. 1. Banks accept the deposits at high rate of interest and lend at higher rate of interest 2. Banks accept the deposits at high rate of interest and lend at no rate of interest 3. Banks accept the deposits at high rate of interest and lend at lower rate than the present rates 4. Banks accept the deposits at lower rate of interest and lend at higher rate 5. None 13.C Rangarajan said which one as the ‗flawed business model‘ ? 1. Banks 2. Companies 3. Micro Finance Companies 4. Schools 5. Private Banks 14.Interest Corridor includes ……..? 1. Base rate and savings rate 2. Bank rate and Reverse Repo rate 3. Base rate and Repo rate 4. Repo rate and Reverse Repo rate 5. None 15.Asset-Liability mismatch usually happened in…………? 1. Home Loan and Infrastructure Project Financing 2. Education loan and personal loan 3. Personal loan and marriage loan 4. Travel loan and marriage loan 5.None 16.When Reserve bank of India Act was passed? 1. 1935 2.1954 3.1934 4.1971 5.1919 17. When Reserve bank of India was founded? https://www.facebook.com/groups/BANKPOANDCLERK
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1. 1 Apr 1934 2. 1 Jan 1935 3. 1 Apr 1935 4. 1 June 1935 5. None 18.On which date of January 1949, the Reserve Bank of India was Nationalized? 1. 21 2.31 3.5 4.15 5.1 19. How many regional offices are there for RBI? 1. 5 2.6 3.4 4. 7 5.9 20.On 26 March 2011, RBI said it wants to set up its first Sub-office in……….. to increase the outreach of the banks in that region? 1. Meghalaya 2. Manipur 3. Assam 4. Arunachal Pradesh 5. Tripura 21.The chief function of Reserve Bank of India includes…………? 1. Minting Currency 2. framing the monetary and credit policy 3. With the help of Circulation of money, maintaining price stability 4. Foreign Exchange matters 5. All of above 22.The different names of Reserve Bank of India are………….? 1. Central bank 2. Banker‘s bank 3. Lender of the last resort 4. Apex bank 5. All of the above 23.The government of India has the mint at………. 1. Noida 2. Kolkata 3. Mumbai https://www.facebook.com/groups/BANKPOANDCLERK
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4. Hyderebad 5. All of the above places 24.………… puts signature on one rupee paper currency? 1. Finance Secretary 2. RBI governor 3. President of India 4. prime minister 5. Finance minister 25. RBI has six training colleges. Pick up correctly matched one? a) College of Agricultural Bank-Pune b) National Institute of Bank Management-Pune c) Bankers Training College-Mumbai d) Indira Gandhi Institute for Development Research-Mumbai e) Reserve Bank of India Staff College- Chennai f) institute for Development and Research in Banking Technology-Hyderabad g) Note Counting and Quality Research Center-New Delhi 1. a b c d f g 2. a c d e f g 3. a b c d e f 4. a b c d e g 5. a b d f g 26.How many banks were allowed to import gold and silver as per the order of RBI recently? 1. 8 2.6 3.7 4.11 5.10 27.In India how many banks were allowed to import the gold and silver? 1. 11 2.60 3.45 4.30 5.20 28.In India the lowest denomination of currency is Rs. ? 1. two 2. five 3. ten 4. one 5. 50 paise 29.In India the highest denomination of currency is………..? 1. 100 2.500 3.50 4.1000 5.10000 30.The highest circulation of paper currency is…………? 1. 2 2.100 3.1 4.1000 5.10 31.The highest number of fake currency in India is …………? 1. 5 2.100 3.1000 4.10 5.500 32.All paper currency in India must have the symbol of …………….as per the order of Central government from the year 2000? 1. Gandhi 2. Nehru 3. Bharath Matha 4. Lion 5. Tiger 33.Indian paper currency minted in Mysore and also in ……….? 1. Kolkatta 2. Chennai 3. Bengaluru 4.Nasik 5. Delhi 34.Paper currecncy minted with Ink OVI. OVI means Optical Variable Ink. It is imported from 1. Switzerland 2. France 3. America 4. Russia 5. Belgium 35. Which industry manufactures white paper to supply to Indian Security Press? 1. Gurgoan ( Haryana) 2. Golkonda (Andhra Pradesh) 3. Houshangabad ( https://www.facebook.com/groups/BANKPOANDCLERK
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Madhya Pradesh) 4. Ladakh ( Jammu) 5. None 36.In 2010-2011,which country exported the huge quantity of white paper to India? 1. USA 2. Japan 3. Russia 4. Dubai 5. Australia 37.Who mints the Indian coins? 1. RBI 2. CBI 3. Government of India 4. State Bank of India 5. IDBI 38.Recently Rs. 150 coin minted in the memory of Rabindranath Tagore. The same denomination also minted in the memory of the completion of department of ……….? 1. Excise tax 2. Sales Tax 3. Income Tax 4. Finance 5. None 39.New series of Rs. 10 Gandhi Series will have…………..letter and other features are the same, as per the order of the RBI on 19 Jan 2010? 1. Y 2. L 3. P 4. N 5. K 40.By 31 March 2010, how many villages were covered with banking serives? 1. 81000 2.31000 3.91000 4.15000 5.20000 41.Usha Thorat Committee suggested how many villages will have banking services by the end of 2012? 1.75000 2.100000 3.60000 4.50000 5.90000 42.On 28 Feb 2011, as per the union budget, how many villages will be provided with banking services by 2012? 1. 84000 2.10000 3.68000 4.41000 5.73000 43.As per the statement of RBI‘s Deputy Governor K. C. Chakrabarty, at least all villages will have mobile banks by……………? 1. 2015 2.2020 3.2014 4.2016 5.2025 44.Which among the following is not the part of banking service? 1. Branch 2. On line banking 3. bank hoarding 4. Appointment of business correspondent 5. ATM service 45.‗Bank Saathi‘ means…………? 1. nearest bank 2. Business correspondent scheme 3. Nearest ATM 4. Account for friend https://www.facebook.com/groups/BANKPOANDCLERK
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5. Scheme for wife and husband 46.Business Correspondent appointed to represent the bank in rural area. Who is not eligible to act as business correspondent? 1. House Wife 2. Bank employee 3.private employee 4. the resident of village 5. None 47.Financial inclusion means……….? 1. providing banking services in rural areas with affordable cost 2. providing corporate accounts in industrial area 3. giving many joint accounts to save the money of banks 4. not to allow the banks to villages having already branch of another bank there 5. all of above 48.On 11 February 2011,Hamara Khaata Hamara Swabhimaan(Our Account Our Pride) scheme announced. Who declared this one? 1. Indian Banks Association and SBI 2. RBI and IBA 3. SBI and IDBI 4. Ministry of Finace and World Bank 5. Indian Banks Association and Ministry of Finace 49.The lowest lending in the area of ……………….? 1. Central Part of India 2. Northern Part of India 3. Southern Part of India 4. Western Part of India 5. North Eastern Part of India 50.To raise the funds in European Union GDR used. GDR means…..? 1. Global Digital Receipts 2. Global Dual Receipts 3. Global Digital Rom 4. Global Done Receipts 5. Global Depositary Receipts 51. Which bank in India usually acts as a coordinator in the operations of rural credit institutions? 1. RBI 2. SIDBI 3. NABARD https://www.facebook.com/groups/BANKPOANDCLERK
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4. RRB 5. SCB 52. Who is called leader in refinance to lending institutions in rural areas? 1. ICICI 2. REPCO 3. NABARD 4. SKS 5. SFC 53.With whom NABARD got MOU to prepare a road map for it‘s financial boost up its business? 1. System Group 2. Perefect Solutions 3. Boston Consulting Group 4. DATA CRAFT 5. None 54.Non-Performing Assets do not include…………..? a) Interest and /or installment of principal remain overdue for a period of more than 90 days in respect of a term loan b) the account remaining ‗out of order‘ for a period of more than 90 days in respect of an overdraft/cash credit c) the bill remains overdue for a period of more than 90 days in the case of bills purchased and discounted d) the customer does not do any transaction in the last 90 days in savings bank account e) the cheque does not honor within 180 days 1. a b 2. a d 3. c d 4. d e 5. c e 55.RBI increases the cash limit for foreign travel to……from $ 2000 without its approval? 1. $4000 2. $7500 3. $3000 4. $10000 5. $600 56.RBI asked all banks not to honour cheques with overwriting from…? 1. 1 September 2010 2. 1 February 2011 3. 1 December 2010 4. 1 March 2011 https://www.facebook.com/groups/BANKPOANDCLERK
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5. 1 April 2011 57.RBI sold out its …………………..% share in national housing index for RS. 450 crore to Union Government 1. 75 2.62 3.100 4.25 5.90 58. How much worth of bank notes is in the circulation in India as per the data released by RBI? 1. 5,22,814 cr 2. 18,22.366 cr 3. 7,88,299 crore 4. 2,25,145 cr 5. none 59. The business men and corporate sector eager to know India‘s Reference Rate for the US dollar as released by RBI. RBI releases this data on…………..basis 1. Bi-monthly 2. Weekly 3. monthly 4. Half-yearly 5.Daily 60. Deposit Insurance and Credit Guarantee Corporation (DICGC) insures the deposits of the bank customers up to 1 lakh. DICGC is the wholly owned subsidiary of …? 1. SBI 2. NABARD 3. Union Government 4. RBI 5. IDBI 61.Monetary Policy of RBI does not include……………? 1.Control the supply of Money 2. Fixation of rate of interest ( least in some categories) 3. Reduction of taxes 4.Fixation of Repo rate and Reverse Repo rate 5.Fixation of Cash 62.RBI has constituted an Expert Committee under the chairman ship of ……………….studying the advisability of granting new urban co-operative banking licenses? 1. C.Ranga Rajan 2. 2. Deepak Mohanty 3. Y. H Malegam 4. Usha Thorat 5. Subhir Gokarn 63. On the eve of 125th birth anniversary of the country's first president Rajendra Prasad and 150th birth anniversary of Nobel laureate Rabindrnath Tagore, RBI issues Rs…………..coin as per the statement given on 14 Oct 2010? 1. one 2. two 3. ten 4. twenty 5. five 64.The Reserve Bank of India has constituted a Working Group to review the current operating procedure of monetary policy of the RBI, including the liquidity adjustment facility under the headship of…………………………….on 13 Sep 2010 1. Syamala Gopinath https://www.facebook.com/groups/BANKPOANDCLERK
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2. Kaushik Basu 3. Pranab Mukarjee 4. Vijay C.Kelkar 5. Deepak Mohanty 65.RBI in one statement said that the Rupee is over-hauled, it means? 1. Rupee weakened where as the other currencies are becoming stronger 2. Dollar weakened against Rupee in the morning but in evening it lost to Rupee 3. Rupee appreciates against other currencies; where as other currencies are weakening 4. All currencies are stronger than Rupee, except the Dollar as it is universal currency 5. Rupee becoming stronger in that week against the all currencies 66.RBI does some Open Market Operations. Open Market Operations mean……….? 1.RBI enters in the Banking sector and offers the direct service to customers. It can give current account to customers and participate in the mutual fund markets 2. RBI participates in the selling and buying of shares in stock exchange. 3. It buys and sells the government securities in the open market . By buying it swells the liquidity by selling it sucks the load of liquidity. 4. RBI and banks buy and sell shares in the open market for profit during the first session of stock exchange business. 5. All of above 67.To study the issues and concerns of the Microfinance sector, RBI appointed a committee headed by………………………………..? 1. C.Ranga Rajan 2. Usha Thorat 3. K.C.Chakravarthy 4. Shyamala Gopinath 5. Y. H. Malegam 68. Who heads the sub-committee of Financial Stability and Development Council (FSDC), the chief regulator to regulate the regulators? 1. Finance minister 2. SEBI Chairman 3. RBI Governor 4. IRDA Chairman 5. PFRDA Chairman https://www.facebook.com/groups/BANKPOANDCLERK
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69.Which famous French Bank applied to get Reserve Bank of India's permission to start a non-banking finance company (NBFC) in India? 1. ING 2. IAG 3. BNP Paribas 4. Lombard 5. Prudential 70.An Indian company, which is otherwise eligible for ECB (External Commercial Borrowing ) can borrow up to which of the following amounts a year without prior RBI approval? 1. $ 500 Million 2. $ 300 million 3. $ 400 Million 4.$ 450 Million 5.$ 600 Million 71.In which bank Bank of Rajasthan was merged? 1. SBI 2. Syndicate Bank 3. HDFC 4. ICICI 5. Bank of Punjab 72. BOR and ICICI agreed to amalgamate with ……………a swap ratio 1. 15:100 2. 25:118 3. 118:25 4. 25:75 5. 15:85 73.RBI said all………..should open no frills accounts for Minority communities for availing various scholarships? 1. Co-Operative Banks 2. Regional rural banks 3. Scheduled Commercial Banks 4. Local Area banks 5. NABARD 74.RBI issue Rs…………….and Rs……………..coins to commemorate the Common Wealth Games 2010 held at New Delhi? 1.One and Two 2.Five and Hundred 3.Two and Five 4.Five and Twenty 5.Hundred and Five Hundred 75.Since 2003, Which of the following key rate had not been altered by RBI? 1. Reverse Repo Rate 2. Repo Rate 3. Cash Reserve Ratio 4. Bank Rate 5. Statutory liquidity Ratio 76. As per RBI data currently, credit to the MSME sector accounts for about …. per cent of the total banking credit in the country? 1. 14-15 2. 20-21 3.30-35 4. 25-26 5.50-5 77.SBI christened SBI PSU FUND and raised ……….? 1. 500 cr 2. 1500 cr 3. 2000 cr 4. 1000 cr 5. 3000 cr 78.More than 1,000 kg Gold to be deposited with ………by Tirumal Tirupathi Devastanams at 1.6 % P.A? https://www.facebook.com/groups/BANKPOANDCLERK
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1. State Bank of Hyderabad 2. Tirumala Bank 3. State Bank of India 4. Indian Bank 5. ICICI 79. State Bank of India became first bank to setup wind mills for captive use to adhere Green banking. These wind mills are established first in………….? 1. Andhra Pradesh 2. Haryana 3.Karnataka 4.Tamilnadu 5. Goa 80.SBI funds is the joint venture between SBI and………………? 1. Prudential ( U.S.A ) 2. BNP Paribas ( France ) 3. Allianz ( ) 4. Societe Generale Asset Management ( France ) 5. IAG ( Australia ) 81.Which bank and Oriental Insurance Corporation Limited agreed to launch a joint medicliam policy ? 1. Andhra Bank 2. Oriental Bank of Commerce 3. PNB 4. ICICI 5. Syndicate Bank 82.The Reserve Bank of India has raised the threshold limit for real time gross settlement (RTGS) transactions from Rs 1 lakh to RS. ……………lakh? 1. 1.5 2.3 3.5 4.2.5 5. 2 83.India‘s First Dedicated Education Loan Company CREDILA is the associate body of……………? 1. SBI 2. Andhra Bank 3. United Bank of India 4. Hdfc 5. SBH 84. SBI life insurance details are given. Pickup incorrect statement? 1. SBI Life Insurance Company Limited is a joint venture between the State Bank of India and BNP Paribas Assurance 2. SBI owns 74% of the total capital and BNP Paribas Assurance the remaining 26%. 3. BNP Paribas Assurance is the fourth largest life insurance company in https://www.facebook.com/groups/BANKPOANDCLERK
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France 4. On 14 Apr 2010, SBI proposed to merge BNP Paribas Indian module 5. SBI Life Insurance is registered with an authorized capital of Rs 2000 crores and a Paidup capital of Rs 1000 Crores 85. Which bank was merged with Centurion bank? 1. Bank of India 2. bank of maharastra 3. Bank of Punja 4. Indian bank 5. Corporation Bank 86. Centurion bank was merged with…………………….? 1. HSBC 2. Corporation bank 3. HDFC 4. IDBI bank 5. City bank 87. Global Trust bank was merged with ………………………? 1. HDFC 2. OBC 3. IDBI 4. Indian bank 5. Corporation bank 88.State Bank of India opened a savings bank account with RS. 1 by targeting Urban Poor. In this connection, recently it opened 20 kiosks called customer Service point ( CSP) to do this assignment. The first Kiosk opened in ……………….? 1. Lucknow 2. Mumbai 3. Vijayawada 4.Hyderabad 5. Tirupathi 89.25 % FDI allowed as per the approval of the Foreign Investment Promotion Board in to banks. How much percent of FDI allowed by direct route in banks? 1. 74 2.49 3.50 4.51 5.15 90.Regional Rural banks are not in the state of Sikkim and ……………..? 1. Tamil nadu 2. Rajasthan 3. Goa4. West Bengal 5. Jammu & Kashmir 91.Common Wealth Bank of Australia open its first branch in India at …? 1. Delhi 2. Jaipur 3. Mumbai 4. Chennai 5. Hyderabad 92. Which two banks have executed a memorandum of understanding https://www.facebook.com/groups/BANKPOANDCLERK
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(MOU) to form a trust exclusively to establish and run financial literacy and credit counseling centers across various lead districts in Karnataka? 1. Andhra Bank and Union Bank of India 2. Syndicate Bank and State Bank of India 3.Syndicate Bank and Vijaya Bank 4. Andhra Bank and Oriental Bank of Commerce 5. United Bank of India and Andhra Bank 93.Which banks have comfortably retained the top rank in terms of profits/ employee, as per the data released by the Reserve Bank of India? 1. Public Sector Banks 2. Private Sector Banks 3. Foreign Banks 4. Co-operative Banks 5. Rural Banks 94.The software, styled ‗Score', invented for small banking institutions such as cooperative banks at a minimal cost. This software developed by……………? 1. Satyam Mahendra ( Pune) 2. Infosys ( Karnataka) 3. Simcom ( Haryana) 4. Microsoft ( Andhra Pradesh) 5. Perfect Software Solutions Pvt Ltd ( Kerala) 95. Which Co-operative Bank has moved the Central Government and the Reserve Bank of India for permission to issue shares at a premium to new members. it has base at Mumbai? 1. Baranagar 2. Vizayanagaram 3.saraswat 4. Belguam 5. Annoya 96.European Central Bank (ECB) has the head quarters at…………? 1. Pairs 2. London 3. Madrid 4. Rome 5.Frankfurt 97.In context with Banking, which among the following is a correct with regard to Merchandise https://www.facebook.com/groups/BANKPOANDCLERK
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Credit and Merchandise Debit? 1. Merchandise credit relate to export of Durable goods while merchandise debit represent import of Durable goods 2. Merchandise credit relate to buying of goods while merchandise debit represent selling of goods 3.Merchandise credit relate to export of petrol while merchandise debit represent import of Crude 4. Merchandise credit relate to export of goods while merchandise debit represent import of goods 5. Merchandise credit relate to Balance of Payments while merchandise debit represent Balance of Trade 98.GAB ( General Agreements to Borrow ) recently signed by………….? 1. G-8 2. G-10 3. G-7 4. G-8 5. G-77 99. ………………….. has sold its 13.84 per cent stake in SBI Capital Markets Ltd (SBICAPS) to SBI? 1. World Bank 2. IMF 3.Asian Development Bank (ADB) 4. IFC 5. IIFC 100.Which bank is the first to issue computer chip based Debit card on pilot basis? 1. HDFC 2. ICIC 3.Axis bank 4. Syndicate bank 5. HSBC 101.State Bank of India has tied up with technology company …….. to offer kiosk banking in Mumbai and Maharashtra.? 1. Satyam 2. Micro Soft 3. Infosys 4. Oxigen 5. None 102.portal-linked service, which enables a dissatisfied customer to SMS ―unhappy‖ to 8008202020, if he is a customer of………………………..this is the first of its kind in India? 1. SBI 2. IDBI 3. HSFC 4. ICIC 5. Indian bank 103.INFINET is a communication channel for transmission of electronic communication by https://www.facebook.com/groups/BANKPOANDCLERK
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banks. INFINET stands for…………? 1. Indian Financial Internal Network Electronic Transaction 2. Indian Financial Internal Network 3. Indian National Financial Internal Net Extra Track 4. Indian Financial Network 5. None 104.IDBI will tie up with…………….to boost micro-financing in India? 1. SBI 2. RBI 3. NABARD 4. SIDBI 5. ADB 105.SBI SMILE provides interest-free seed capital of up to Rs.10 lakh to ………………..? 1. Auto drivers 2. students 3. children 4. small and medium enterprises 5. NRI‘s 106.If a bank account that automatically transfers amounts that exceed (or fall short of) a certain level into a higher interest earning investment option at the close of each business day that account usually called as 1. Freeze Account 2. CASA Account 3. Illegal Account 4. Sweep Account 5. In operative Account 107.In a news paper it is read that ‗Higher Provisioning erodes public sector banks‘ profit‘ Here Provisioning means? 1. Daily Expenses 2. Cost to erect ATMs 3. Conducting Exams to recruit new Personal 4. bad loans 5. Establish new branches 108.Details of the loan given to appear for Competitive exams is a new type of loan. Pick up correct statements? 1. Central Bank of India is the first bank to offer this type of loan. The name of the schme is CENT COMP-EXAM 2. the volume of the loan is Rs. 2 Lakhs 3. It must be paid with in 36 months 4. Even NRI students are eligible 5. For boy students the rate of interest is 12 percent and for girl students the rate of interest is 11.5 percent 109.. Micro Credit in India belongs to………………………..? https://www.facebook.com/groups/BANKPOANDCLERK
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1. Semi-Commercial Banking 2. Commercial Banking 3. Non-Banking Finance 4. Cooperative Banking 5. Private Banking 110.Which is the first rural bank in the country introduced a co-branded ATM card. This is the Indian bank sponsored rural bank. 1. Puduvai Bharathiar Grama Bank (Puducherry) 2. Saptagiri Grameena Bank(Andhra Pradesh) 3. Pallavan Grama Bank( Tamilnadu) 4. Manjira Gramina Bank( Andhra Pradesh) 5. None of above 111.First time in India, Which bank initiates to open ―Youth branch‖, in Andhra Pradesh having a cafeteria for chatting, video games, trendy music speakers etc? 1. State Bank of India 2. Corporation Bank 3. Fedral Bank 4. HDFC 5. ICICI Bank 112.Housing finance company HDFC and private sector ICICI Bank have decided to discontinue teaser home loan schemes. Teaser home loans mean……? 1. the loans given at higher rate of interest for the first few years 2. the loans given at cheaper rates to Senior Citizens 3. the loans given at lower rates for the first few years. 4. the loans given at no interest rate 5. the loans given to employees of the same bank 113. Which of the following private sector bank is re branding itself as RBS? 1.Sumitomo Bank 2.Bank of Scotland . 3.ABN Amro 4. ICICI 5. Bank of Rajasthan 114.. …………………………….Committee played a vital role in the genesis of the Self-Help Group and Bank linkage programme? 1. Usha throat 2. C.Ranga Rajan 3. S.K.Kalia 4. Deepak Mohanty 5.None 115. The banking business use the word Hot Card. Hot card means…………..? 1. Card used to buy Petrol 2. Card used to buy hot deals in website 3. Card issued, but not used by customer 4. Card issued by bank but not honoured by another bank. 5. Lost Credit Cards 116.Recently Reserve Bank of India, along with the Securities and Exchange Board of India (SEBI) has allowed recognized stock exchanges to launch futures currency trading in……. Futures trading in dollars-rupee were already allowed. a) euro-rupee b) pound sterling-rupee https://www.facebook.com/groups/BANKPOANDCLERK
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c) yen-rupee d) Ruble-rupee e) Lira-rupee 1. b c d 2. a b e 3. a b c 4. a b c d 5. All of above 117.What is NABARD‘s primary role? 1. To raise the capital of state government to give loans 2. To provide term loans to State Bank of India 3. To give term loans to stateCooperative Banks 4. To assist central government for share capital share with co-operative banks 5. None 118.To open a new branch the Banks are required to take permission from …………….? 1.SBI 2.SEBI 3.Indian Banks Association 4.Finance Commission of India 5. RBI 119. Banks do not provide………………………………. 1.Issuing Negotiable instruments 2.Sale of Stamp papers at lower rates 3.Deposits 4.Lockers 5.Loans 120. Repatriation means 1. Capital flow from a home country to the foreign country. 2. Deposits move from the low interest area to high interest area 3. Capital flow from a foreign country to the country of origin 4. Capital flow from share market to safe deposits 5. Capital move from the risk area to non- risk area 121. "Loan Servicing" means? 1. Lending the money 2. A mortgage bank or sub-servicing firm collects the timely payment of interest and principal from borrowers 3. Helping the customer to get loan in other banks by providing the details of the running account 4. Giving a loan if the customer has any deposit 5. Giving second loan after payment of first loan regularly 122.. The obstacle for financial inclusion in India? 1. Lack of legal identity like voter id , driving license , birth certificates ,employment identity https://www.facebook.com/groups/BANKPOANDCLERK
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card etc, 2. Lack of basic education prevent people to have access from financial services, 3. Low income people, 4. Lack of awareness about the importance of Finance, Bank Accounts, cheque facility by the people who has basic education 5. All of the above 123.Least ten banks want to pickup stake in the proposed Central Electronic Registry (CER), to keep track of mortgages in the home loan market. CER established by …….. 1. Reserve Bank of India 2. National Housing Bank 3. HDFC 4. State Bank of Hyderabad 5. IMF 124.Luxemberg based KBC group bank purchased by………………group? 1. Tata 2. Hinduja 3. Reliance 4. Vedanta 5. Piramal 125. Lead Bank scheme was launched on the recommendation of? 1. C.Ranga rajan 2.F. K. F. Nariman 3. Lakdawala 4. Dutt and Sundaram 5. Man mohan singh 126.Of the following one, which one is called as non-cash transactions? 1.Credit card 2.Debit card 3.ATM card 4.Pre-Paid card 5. All of above 127.―SBI Ka Apna Goan‖, a Village Development Scheme which was introduced and gradually faded away in 1960s, is being revived by State bank of India under its CSR (Corporate Social Responsibility) . Now it‘s wanted to revive first in ….? 1. Bihar 2. Rajasthan 3. Uttarakhand4. Assom 5. Uttar Pradesh 128.R.B.I has both qualitative and quantitative control instruments to control the monetary https://www.facebook.com/groups/BANKPOANDCLERK
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policy.Among the following measures which one is qualitative one? 1.RBI decreases the CRR rate 2. RBI increases Reverse Repo rate 3. RBI announces selective credit control 4.RBI decreases the Bank rate 5.RBI alters the statutory Liquidity Ratio 129. India will improve its rank by three notches to the 8th position in the International Monetary Fund (IMF). The share improve to about 2.75 percent from the present level of 2.44 percent. China improves it rank from sixth to …………………? 1. First 2. Fifth 3. Fourth 4. Third 5. Second 130.Federation of Indian Chambers of Commerce and Industry conducted a survey. That survey reveals a fact that Indian banking is stronger on vital banking parameters than other BRIC nations. Which among the following has not been highlighted in this survey as strength of Indian Banking System? 1. Quality Human Resources 2.Regulatory system 3. Banking Technology 4. Risk Management System 5. All of above 131.RBI constituted ……………………………committee on Bench Mark Prime Lending Rate? 1. C.Ranga rajan 2. subba rao 3. Deepak mohanty 4. K.C.chakravarthy 5. None 132.Solar ATMs hit soon Indian banking system. Pick up the correct statements? 1. Vortex Engineering announced the launching of large scale of Solar ATMs in India 2. These ATMs are developed in the collaboration of IIT Madras. 3. State bank of India ordered Vortex for the installation of 300 Solar ATMs 4. These ATMs are also equipped with Bio-metric option. 5. Under MGNREGS, these ATMs are erected in Cuddalore district of Tamilnadu as pilot project. 133.Of the following banks which one are wrongly matched one ? https://www.facebook.com/groups/BANKPOANDCLERK
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1. HDFC Bank---The smallest credit card in the world 2. ABN-AMRO—The first transparent credit card in the world 3. Kotak Bank- The first vertical Credit Card in the world 4. SBI bank—multi purpose card in the same group 5. HSBC Bank—first public sector bank to introduce credit card in India 134.Sub prime lending is a loan made to……? 1. The corporate business company which pay back its loan before the date 2. The individual who takes loan by keeping security 3. the bank was authorized by RBI to give loans at reduced rates to some people 4. Such person do not have a good credit history 5. The load of loans 135. On 11 February 2011, TTD deposited 1175 kg of gold with SBI to fetch 1.6 % rate of interest per annum. Which is the only one bank in India offers Gold Deposit Scheme? 1. Syndicate Bank 2. Andhra Bank 3. Kalinga Bank 4. OBC 5. SBI 136.11,000 Business Correspondents will be appointed by the various banks in rural areas with the help of the network FINO. FINO means……………? 1.Financial Inclusion Network and Operations 2. Financial Inclusion Networth and Operations 3. Fundamental Inclusion Network and Operations 4. Financial Inclusion Network and Obligations 5. None 137. Skotch Financial Inclusion Award 2011 for ―SGH Inititatives-Urban Financial Inclusion‖ given to………..? 1. Union Bank of India 2. Syndicate Bank 3. Andhra Bank 4. Indian Bank 5. State Bank of India 138.7th Annual Banking Techonolgy Conference& Expo was held in ………………..on 2 Mar 2011? 1. Goa 2. Hyderabad 3. Tiruvananthapuram https://www.facebook.com/groups/BANKPOANDCLERK
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4. Delhi 5. Mumbai 5. All of the above 139.Banks usually share the information of CIBIL at the time of giving credit to the borrowers. CIBIL stands for…………..? 1. Credit inform Bureau ( India ) Limited 2. Credit Information Bureau (India) Limited 3. Consumer Information Bureau (India) Limited 4. Credit Information Board (India) Limited 5. Collective Information Bureau (India) Limited 140.10 percent of the voting rights removed by Banking Laws (amendment) Bill 2011 in the …………….? 1. Private Banks 2. Public Sector Banks 3. Foreign Banks 4. Regional Rural Banks 5. All of above 141.On 18 March 2011, Which bank opened its foreign subsidiary in UK? 1. SBI 2. IDBI 3. HDFC 4. ICICI 5. UBI 142. The Negotiable instrument is………..? 1. Cheque 2. Demand Draft 3.Cheque 4. Bill of Exchange 5. All of above 143.ICICI decided to come in the large way to open leaset 500 branches in a year. It wants to foucus on the lending to…………..sectors 1. Transportation 2. Education 3. IT 4. Road and Power sector 5. Micro Finance 144.The second largest lender in India is………? 1. SBI 2. IDBI https://www.facebook.com/groups/BANKPOANDCLERK
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3. ICICI 4. UBI 5. IOB 145.The only online account B2 run by……….? 1. Syndicate Bank 2. LIC 3. Corporation Bank 4. IDBI 5. ICICI 146.M.Chidambaram Chettyar is the founder of………..? 1. ICICI 2. Andhra Bank 3. Syndicate Bank 4. IOB 5. BOI 147.Project Merlin is the contract of 4 banks and…………..? 1. England 2. Japan 3. India 4. USA 5. UK 148.The banks are issuing the Kisan credit cards these days to give the free credit period . Generally what is the Validity period of the Kisan Credit Card? 1. 1 year 2. 10 years 3. 5 years 4. 8 years 5. 3 years 149.―Next Eleven Countries‖ (N-11) are ………………….. as identified by the Goldman Sachs investment bank? 1. Least Developed Countries 2. Developed countries 3. No developed countries 4. Developing Countries 5. None 150.RBI had set up the sub-committee, headed by Mr Y.H. Malegam to give recommendations on the Microfinance institutions. His recommendations do not include……………………..? 1. Create Separate category of Non-Banking Finance Companies (NBFC) https://www.facebook.com/groups/BANKPOANDCLERK
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operating in the microfinance sector 2. Even for Micro-finance loan sector, the set up of Credit Information Bureau is essential 3. Micro Finance companies must be audited by the lead banks of the concerned districts on monthly basis 4. Limiting the lending to the same borrower to two Microfinance institutes 5. Micro Finance Companies must not charge more than 24 % from borrowers 151.In which state, the Reserve Bank of India initiated to start satellite banks in villages? 1. Andhra Pradesh 2. Bihar 3. Maharashtra 4. Jharkhand 5. Madhya Pradesh 152. On 14 January 2011, Which bank launched ‗Bank on bike‘, a banking service to extend banking services in rural areas, first time in India at Cheriyal village of Medak district in Andhra Pradesh 1. Andhra Bank 2. State Bank of Hyderabad 3. ICICI 4. Syndicate Bank 5. State Bank of India 153.The Banks Punch lines are given. Pick up correct one? 1. Allahabad Bank-A tradition of trust 2. Andhra Bank-For all your needs 3. Bank of Baroda-India‘s International Bank 4. Bank of India-Relationship beyond Banking 5. All of the above 154.The head offices of banks are given. Pick up incorrect one? 1. Allahabad Bank- Kolkatta 2. Andhra Bank-Hyderabad 3. Bank of Baroda-Baroda 4. Bank of India-Mumbai 5. None 155.What is meant by Medium term note? 1. A corporate note continuously offered by a bank to investors through a dealer. Investors can choose from differing maturities, ranging from 1 month to 1 year https://www.facebook.com/groups/BANKPOANDCLERK
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2. A corporate note continuously offered by a company to investors through a dealer. Investors can choose from differing maturities not exceeding 6 months 3.A corporate note continuously offered by a company to investors through a dealer. Investors can choose from differing maturities, ranging from nine months to 30 years 4. A corporate note continuously offered by a company to investors asking them to take not higher or lower denomination of notes 5. None 156.Differential Rate of Scheme ( D.R.S ) means……….? a. The difference between the small borrowers who will be charged with more rate of interest and big borrowers are charged with less rate of interest b. The banks can discriminate between public employment employees and private employment employees c. Public and Private sector banks can discriminate the customers under this DRS d. Public sector banks are required to fulfill the target of lending of at least one percent of total advances at the end of the preceding year to the weakest of weaker sections at an interest of 4 % per annum. e. The Foreign and Indian banks differ in the evaluation of loans to be given to customers 157.R.R.B‘S are entitled to enter in to the business of Mutual funds. Pick up the wrong one? 1. They are entitled to enter in to business of Mutual Funds intimating to R.B.I 2. They should not acquire the MF units from secondary markets 3. They should get special permission from State Governments 4. They should not buy back the shares from the unit holders 5. They come under the monitoring role of SEBI and R.B.I in this case 158.Goporia committee recommendations were given below, relating to the working of Banks. Find the incorrect one? 1. Extension of banking hours for all banks 2. suspend the saving accounts as there are withdrawals 3. The readujustment of banking time for staff 4. increase the tax benefit for bank deposit schemes 5. optimize the powers of banking officials 159.Some times banks believe that the sudden decrease of loan rate of https://www.facebook.com/groups/BANKPOANDCLERK
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interest benefits both bank and for corporate houses. Pick up the correct one? a. This type of scheme encourages the corporate houses to pay back their high cost debts. b. This scheme helps the corporate sector to take fresh loans at lower rate of interest c.The bank is benefited by getting funds back from the risky customers. d.Prepayment charges are also collected by bank 1. ab 2. b c d 3. a b c 4. a b c d 5. a c d 160.Private Equity investment means? 1. purchase of a majority of total owner ship in an operating company 2. Private company divides its capital and forming in to two companies 3. Public company turns in to Private company 4. Private stake sold to another company to do another business 5. Govt. approval to it‘s PSU to do the private business also 161.Balance of payments means a record of all economic transactions completed between its Residents of remaining world during a year . it includes? a. export value b. import value c) shipping d) banking e) tourism f) insurance g) loyalty 1. a b c d g 2. a b c d e f g 3. b c d e 4. d e f 5. a b d e f 162.Autarchy in Economy means? 1. independence of economy does not need imports 2. political dominance in parliament 3. independent powers of RBI 4. exclusive powers of Governor of State 5. company‘s power to buy back it‘s shares 163.With a view to strengthen and institutionalize the mechanism for maintaining financial stability,Government has decided to set up an apex level body, not to disturb theautonomy of regulators. It is……………? 1.Financial and regulation council 2. Regulation and stability monitoring council 3. Financial stability and development council 4. Indian Regulatory authority of stability 5. Indian financial stability and development council 164.If the net worth of company is above RS. 1000 crore by 1 Apr 2010, they should follow IFRS norms. If their net worth is RS. 500 crore –Rs.1000 crore they should follow by 1 APR 2003, and below than RS. 500 crore they should follow by 1 Apr 2014.All small and medium scale industries,Unlisted Firms are exempted from IFRS. IFRS means………..? 1. International Financial Respect scheme 2. 2.International Financial Reign System 3 Inter-continental Financial Report system 4. International Financial Reporting Standards https://www.facebook.com/groups/BANKPOANDCLERK
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5 International Financial Responsive Syste 165.Of the following statements which one is wrong related RBI subsidiary BRBNMPL? 1. Bharatiya Reserve Bank Note Mudran Private Limited was established by RBI 2. its wholly owned subsidiary of RBI established on 3rd February 1995 3. It is established to bridge the gap between the supply and demand for bank notes in the country. 4. The company manages 2 Presses one at Mysore in Karnataka and the other at Salboni in West Bengal 5. It is chaired by Pranab Mukharjee, the Finance Minister of India as a Full time Director 166.As per the statement given by D.Subba Rao, the governor of R.B.I, India preferrs.? 1. long term flows to short term flows and non-debt flows to debt flows. 2. Short term flows to long term flows and debt flows to non-debt flows 3. long term and short term flows 4. long term flows and debt flows 5. none 167.Which banks have comfortably retained the top rank in terms of profits/ employee, as per the data released by the Reserve Bank of India? 1. Public Sector Banks 2. Private Sector Banks 3. Foreign Banks 4. Co-operative Banks 5. Rural Banks 168.SBI SMILE provides interest-free seed capital of up to Rs.10 lakh to ………………..? 1. Auto drivers 2. students 3. children 4. small and medium enterprises 5. NRI‘s 169.Indian Banks are showing interest to do Factoring Business. Factoring means..? 1. Construction of factories in the urban areas 2. Selling and buying of shares 3. Issue loans to heavy industries in SEZ areas 4. Collection of debts of another 5. None 170.Indian Banks are showing interest to do Factoring Business. Factoring means..? https://www.facebook.com/groups/BANKPOANDCLERK
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1. Construction of factories in the urban areas 2. Selling and buying of shares 3. Issue loans to heavy industries in SEZ areas 4. Collection of debts of another 5. None 171.Micro Credit in India belongs to………………………..? 1. Semi-Commercial Banking 2. Commercial Banking 3. Non-Banking Finance 4. Cooperative Banking 5. Private Banking 172.Any bank can start its branch with out permission of RBI in…………..part of India? 1. North Eastern 2.North Western 3. South Western 4. South Eastern 5. Central Banking Awareness Key 1.3 2.5 3.1 4.4 5.4 6.3 7.4 8.5 9.3 10.1 11.4 12.3 13.3 14.4 15.1 16.3 17.3 18.5 19.3 20.5 21.5 22.5 23.5 24.1 25.3 26.3 27.4 28.4 29.4 30.5 31.5 32.1 33.4 34.1 35.3 36.4 37.3 38.3 39.4 40.2 41.1 42.5 43.1 44.3 45.2 46.2 47.1 48.5 49.5 50.5 51.3 52.3 53.3 54.4 55.3 56.3 57.3 58.3 59.5 60.4 61.3 62.3 63.5 64.5 65.3 66.3 67.5 68.3 69.3 70.1 71.4 72.2 73.3 74.3 75.4 76.1 77.4 78.3 79.4 80.4 81.3 82.5 83.4 84.4 85.3 86.3 87.2 88.4 89.2 90.3 91.3 92.3 93.3 94.5 95.3 96.5 97.4 98.2 99.3 100.3 101.4 102.1 103.4 104.4 105.4 106.4 107.4 108.4 109.3 110.3 111.1 112.3 113.3 114.3 115.5 116.3 117.3 118.5 119.2 120.3 121.2 122.5 123.2 124.2 125.2 126.5 127.4 128.3 129.4 130.1 131.3 132.4 133.5 134.4 135.5 136.1 137.4 138.2 139.2 140.1 141.5 142.5 143.4 144.5 145.5 146.3 147.1 148.5 149.4 150.3 151.4 152.5 153.5 154.5 155.3 156.4 157.3 158.2 159.4 160.1 161.2 162.1 163.3 164.4 165.5 166.1 167.3 168.4 169.4 170.4 171.3 172.1
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