DIARY OF EVENT 2013

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DIARY OF EVENT 2013

A SPECIAL ISSUE

LAST YEAR EVENT
REGIONAL, NATIONAL,INTERNATIONAL AND SPORTS ETC

CURRENT AFFAIRS
USEFULLY FOR BANK CLERKS PO INTERVIEW

BANKING AWARENESS

BANKING AWARENESS
1.Maximum punishment for melting or destruction of coins would be
increased from 5 years to …7…………..years of imprisonment?

2.The central government reduced its stake in State Bank of India from
55 percent to 51 %

3. NABARD authorizes the credit limit to the National Co-operative Marketing
Federation?

4.. Increase in deposit rate results …increase savings
 
5. Increase in deposit rate results increase the credit growth

6.Raise in inflation rate leads to decline in  decrease the real interest rate

7.Difference between interest earned and interest paid is called Net Interest Income

8.Express Remit is the brand name remittance facility of  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9.Rs. 1000 can be withdrawn from the Point of Sales Terminals ( POS) as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? UBI

10.Free Collateral loan up to Rs. 5…lakh provided to SME?

11.…IDBI……is the largest stake holder in the National securities
depository Limited?


12. Recently RBI advised the banks to reduce the Net Interest Margin
comedown to see the double digit growth. What is meant by it……….
 Banks accept the deposits at high rate of interest and lend at lower
rate than the present rates

13.C Rangarajan said which one as the ‘flawed business model’ ?
 Micro Finance Companies

14.Interest Corridor includes ……..?
 Repo rate and Reverse Repo rate

15.Asset-Liability mismatch usually happened in…………?
Home Loan and Infrastructure Project Financing

16.When Reserve bank of India Act was passed?
1934

17. When Reserve bank of India was founded?
1 Apr 1935

18.On which date of January 1949, the Reserve Bank of India was
Nationalized?.1

19. How many regional offices are there for RBI 4

20.On 26 March 2011, RBI said it wants to set up its first Sub-office
in… Tripura. to increase the outreach of the banks in that region?

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

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

23.The government of India has the mint at……….
1. Noida
2. Kolkata
3. Mumbai
4. Hyderebad

24.Finance Secretary puts signature on one rupee paper currency?

25. RBI has six training colleges.  correctly matched
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

26.How many banks were allowed to import gold and silver as per the order
of RBI recently 7

27.In India how many banks were allowed to import the gold and silver 30

28.In India the lowest denomination of currency is Rs. one 

29.In India the highest denomination of currency is…1000

30.The highest circulation of paper currency is…10

31.The highest number of fake currency in India is …500

32.All paper currency in India must have the symbol of …………….as per the
order of Central government from the year 2000? Gandhi

33.Indian paper currency minted in Mysore and also in ….Nasik

34.Paper currecncy minted with Ink OVI. OVI means Optical Variable Ink.
It is imported from Switzerland

35. Which industry manufactures white paper to supply to Indian Security
Press? Houshangabad

36.In 2010-2011,which country exported the huge quantity of white paper
to India?. Dubai

37.Who mints the Indian coins?
Government of India

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 …. Income Tax


41.Usha Thorat Committee suggested how many villages will have banking
services by the end of 2012 75000


43.As per the statement of RBI’s Deputy Governor K. C. Chakrabarty, at
least all villages will have mobile banks by 2015

44.Which among the following is the part of banking service?
1. Branch
2. On line banking
4. Appointment of business correspondent
5. ATM service

45.‘Bank Saathi’ means…………?
Business correspondent scheme

46.Business Correspondent appointed to represent the bank in rural area.
Who is not eligible to act as business correspondent?
 Bank employee

47.Financial inclusion means……….?
1. providing banking services in rural areas with affordable cost

48.On 11 February 2011,Hamara Khaata Hamara Swabhimaan(Our Account Our
Pride) scheme nnounced. Who declared this one?
Indian Banks Association and Ministry of Finace

49.The lowest lending in the area of ……………….?
 North Eastern Part of India

50.To raise the funds in European Union GDR used. GDR means…..?
Global Depositary Receipts


51. Which bank in India usually acts as a coordinator in the operations
of rural credit
institutions?
 NABARD

52. Who is called leader in refinance to lending institutions in rural
areas?
NABARD

53.With whom NABARD got MOU to prepare a road map for it’s financial
boost up its usiness?boston Consulting Group

54.Non-Performing Assets do not include…………..?
the customer does not do any transaction in the last 90 days in
savings bank account

55.RBI increases the cash limit for foreign travel to……
without its approval?
 $3000

56.RBI asked all banks not to honour cheques with overwriting from…?
 1 December 2010

57.RBI sold out its …………………..% share in national housing index for RS.
450 crore to  Union Government 100

58. How much worth of bank notes is in the circulation in India as per
the data released by RBI? 7,88,299 crore

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………….Daily .basis.

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 …RBI

61.Monetary Policy of RBI does not include……………?
 Reduction of taxes

62.RBI has constituted an Expert Committee under the chairman ship of
……………….studying
the advisability of granting new urban co-operative banking licenses?
. Y. H Malegam


65.RBI in one statement said that the Rupee is over-hauled, it means?
 Rupee appreciates against other currencies; where as other currencies
are weakening

66.RBI does some Open Market Operations. Open Market Operations mean……….?
 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.

67.To study the issues and concerns of the Microfinance sector, RBI
appointed a committee
headed by… Y. H. Malegam

68. Who heads the sub-committee of Financial Stability and Development
Council (FSDC), the
chief regulator to regulate the regulators?
RBI Governor

69.Which famous French Bank applied to get Reserve Bank of India's
permission to start a
non-banking finance company (NBFC) in India?
 BNP Paribas

70. ECB (External Commercial Borrowing )


71.In which bank Bank of Rajasthan was merged?
. ICICI
72. BOR and ICICI agreed to amalgamate with ……………a swap ratio
. 25:118

73.RBI said all………..should open no frills accounts for Minority
communities for availing
various scholarships?
 Scheduled Commercial Banks


75.Since 2003, Which of the following key rate had not been altered by RBI?
 Bank Rate

76. As per RBI data currently, credit to the MSME sector accounts for
about …. per cent of the
total banking credit in the country? 14-15

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
 Indian Bank

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…Tamilnadu

80.SBI funds is the joint venture between SBI and………………?
 Societe Generale Asset Management ( France )

81.Which bank and Oriental Insurance Corporation Limited agreed to
launch a joint medicliam  policy ?PNB

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? 2

83.India’s First Dedicated Education Loan Company CREDILA is the
associate bodyof…. Hdfc

84. SBI life insurance details are given. Pickup correct 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
France



85. Which bank was merged with Centurion bank?
. Bank of Punja

86. Centurion bank was merged with…………………….?
 HDFC

87. Global Trust bank was merged with ………………………?
 OBC

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 ……………….?
Hyderabad

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?49

90.Regional Rural banks are not in the state of Sikkim and ………Goa

91.Common Wealth Bank of Australia open its first branch in India at  Mumbai

92. Which two banks have executed a memorandum of understanding (MOU) to
form a trust exclusively to establish and run financial literacy and credit
counseling centers across various
lead districts in Karnataka?
.Syndicate Bank and Vijaya 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?
 Foreign Banks

94.The software, styled ‘Score', invented for small banking institutions
such as cooperative
banks at a minimal cost. This software developed by……………?
. 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?
saraswat

96.European Central Bank (ECB) has the head quarters at…………?
.Frankfurt

97.In context with Banking, which among the following is a correct with
regard to Merchandise
Credit and Merchandise Debit?
 Merchandise credit relate to export of goods while merchandise debit
represent import of goods




100.Which bank is the first to issue computer chip based Debit card on
pilot basis?
Axis bank

101.State Bank of India has tied up with technology company …….. to
offer kiosk banking
in Mumbai and Maharashtra.?
. Oxigen

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?
SBI


103.INFINET is a communication channel for transmission of electronic
communication by
banks. INFINET stands for…………?
Indian Financial Network 5. None

104.IDBI will tie up with…………….to boost micro-financing in India?
 SIDBI

105.SBI SMILE provides interest-free seed capital of up to Rs.10 lakh to
………………..?
. small and medium enterprises

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
 Sweep Account

107.In a news paper it is read that ‘Higher Provisioning erodes public
sector banks’ profit’
Here Provisioning means?
 bad loans

108.Details of the loan given to appear for Competitive exams is a new
type of loan. Pick up
correct statements?
. Even NRI students are eligible

109.. Micro Credit in India belongs to………………………..?
Non-Banking Finance

110.Which is the first rural bank in the country introduced a co-branded
ATM card. This is the Indian bank sponsored rural bank.
 Pallavan Grama Bank( Tamilnadu)

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

112.Housing finance company HDFC and private sector ICICI Bank have
decided to
discontinue teaser home loan schemes. Teaser home loans mean……?
 the loans given at lower rates for the first few years.

113. Which of the following private sector bank is re branding itself as
RBS ABN Amro

114.. …………………………….Committee played a vital role in the genesis of the
Self-Help Group and Bank linkage programme? S.K.Kalia

115. The banking business use the word Hot Card. Hot card means…………..?
 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
c) yen-rupee

117.What is NABARD’s primary role?
To give term loans to stateCooperative Banks

118.To open a new branch the Banks are required to take permission from
RBI


119. Banks do provide……………………………….
1.Issuing Negotiable instruments
3.Deposits
4.Lockers
5.Loans

120. Repatriation means
Capital flow from a foreign country to the country of origin

121. "Loan Servicing" means?
 A mortgage bank or sub-servicing firm collects the timely payment of
interest and principal from borrowers

122.. The obstacle for financial inclusion in India?
1. Lack of legal identity like voter id , driving license , birth
certificates ,employment identity 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


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 ……..
National Housing Bank

124.Luxemberg based KBC group bank purchased by………………group?
Hinduja

125. Lead Bank scheme was launched on the recommendation of?
F. K. F. Nariman

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



128.R.B.I has both qualitative and quantitative control instruments to
control the monetary
policy.Among the following measures which one is qualitative one?
 RBI announces selective credit control



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

131.RBI constituted ……………………………committee on Bench Mark Prime Lending Rate?
Deepak mohanty

132.Solar ATMs hit soon Indian banking system. Pick up the correct
statements?
These ATMs are also equipped with Bio-metric option.


133.Of the following banks which one are
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

134.Sub prime lending is a loan made to……?
Such person do not have a good credit history



 FINO means……………?
Financial Inclusion Network and Operations


139.Banks usually share the information of CIBIL at the time of giving
credit to the borrowers.
CIBIL stands for……Credit Information Bureau (India) Limited



141.On 18 March 2011, Which bank opened its foreign subsidiary in UK?
UBI

142. The Negotiable instrument is………..?
1. Cheque
2. Demand Draft
3.Cheque
4. Bill of Exchange

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
 Road and Power sector

144.The second largest lender in India is………?
IOB

145.The only online account B2 run by……….?
ICICI

146.M.Chidambaram Chettyar is the founder of………..?
 Syndicate Bank

147.Project Merlin is the contract of 4 banks and…………..?
1. England

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?
5. 3 years

149.“Next Eleven Countries” (N-11) are ………………….. as identified by the
Goldman Sachs investment bank? Developing Countries

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……………………..?
 Micro Finance companies must be audited by the lead banks of the
concerned districts on monthly basis

151.In which state, the Reserve Bank of India initiated to start
satellite banks in villages?
 Jharkhand

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
 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

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

155.What is meant by Medium term note?
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

156.Differential Rate of Scheme ( D.R.S ) means……….?
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.

157.R.R.B’S are entitled to enter in to the business of Mutual funds.
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
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?
 suspend the saving accounts as there are withdrawals

159.Some times banks believe that the sudden decrease of loan rate of
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

160.Private Equity investment means?
1. purchase of a majority of total owner ship in an operating company

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

162.Autarchy in Economy means?
1. independence of economy does not need imports

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 the
autonomy of regulators.
It is……………?
. Financial stability and development council



165.Of the following statements which one 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

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.

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?
 Foreign Banks

168.SBI SMILE provides interest-free seed capital of up to Rs.10 lakh to
 small and medium enterprises

169.Indian Banks are showing interest to do Factoring Business.
Factoring means..?
. Collection of debts of another

170.Indian Banks are showing interest to do Factoring Business.
Factoring means..?
. Collection of debts of another

171.Micro Credit in India belongs to………………………..?
 Non-Banking Finance

172.Any bank can start its branch with out permission of RBI
in…………..part of India?
. North Eastern

DEVELOPMENT BANKS

Development banks are specialized financial institutions. They provide medium and long-term finance to the industrial and agricultural sector. They provide finance to both private and public sector. Development banks are multipurpose financial institutions. They do term lending, investment in securities and other activities. They even promote saving and investment habit in the public.

meaning definition of development banks
square Definition of Development Banks

The definition of the term 'development banks' can be stated as follows,

1. In General sense,
    "Development banks are those financial institutions whose prime goal (motive) is to finance the primary (basic) needs of the society. Such funding results in the growth and development of social and economic sectors of the nation. However, needs of the society vary from region to region due to differences seen in its communal structure, economy and other aspects."

2. As per Banking subject (mainly in Indian context),
    "Development banks are financial institutions established to lend (loan) finance (money) on subsidized interest rate. Such lending is sanctioned to promote and develop important sectors like agriculture, industry, import-export, housing and allied activities."

square Development Banks in India
Development banking was started after the World War II. It provided finance to reconstruct the buildings and industries which were destroyed in the war.

In India, development banking was started immediately after independence.
The arrangement of development banks in India is depicted below.

development banks in India
Development banks in India are classified into following four groups:
Industrial Development Banks : It includes, for example, Industrial Finance Corporation of India (IFCI), Industrial Development Bank of India (IDBI), and Small Industries Development Bank of India (SIDBI).
Agricultural Development Banks : It includes, for example,
National Bank for Agriculture & Rural Development (NABARD).
Export-Import Development Banks : It includes, for example, Export-Import Bank of India (EXIM Bank).
    Housing Development Banks : It includes, for example, National Housing Bank (NHB).

Industrial Finance Corporation of India (IFCI) is the first development bank in India. It started in 1948 to provide finance to medium and large-scale industries in India.

the Reserve Bank of India (Amendment) Act, 2006 was enacted in June 2006. Consequent to the enactment, the Reserve Bank, has decided to do away with the minimum requirement of 3% CRR and also to not have any maximum cap of 20% (as was the case before the Amendment).

SLR - Statutory Liquidity Ratio
SLR is that proportion of a bank’s Net Demand and Time Liabilities (NDTL) that it has to maintain as investments in certain specified assets. SLR is governed by the provisions of Section 24 of the
Banking Regulation Act. There is No minimum stipulation on SLR (earlier there used to be a minimum stipulated SLR of 25% - but this was removed with an amendment to the Banking Regulation Act in 2007).

However, SLR can not exceed 40%.
Net Demand and Time Liabilities
It is quite apparent that to arrive at CRR or SLR we need to first calculate NDTL.
What constitutes NDTL?

As the name suggest there are three broad components to NDTL.

    Demand Liabilities
    Time Liabilities; and
    A Netting Amount that is reduced from the Demand and Time Liabilities.

Additionally Demand and Time Liabilities (DTL) are further broken up into

    DTL to the banking system;
    DTL to Others; and
    Other DTL.

RBI has been empowered to decide on what kind of liabilities fall under DTL. In case of doubt, banks are advised to get a clarification from RBI.
NDTL Base for CRR and SLR

Is CRR and SLR maintained on the same base - viz NDTL?
The short answer is, No.

While the NDTL calculation is broadly the same, there are some important differences when it comes to it’s use to compute CRR and SLR.

Some items are exempt for CRR purposes and so, the base on which CRR is to be maintained is not the same as the base on which SLR is computed. We shall look at these differences in the base a little later.
Demand Liabilities

Demand Liabilities of a bank are liabilities which are payable on demand. These include

    current deposits;
    demand liabilities portion of savings bank deposits;
    margins held against letters of credit / guarantees;
    balances in overdue fixed deposits;
    cash certificates and cumulative/recurring deposits;
    outstanding Telegraphic Transfers (TTs);
    Mail Transfer (MTs);
    Demand Drafts (DDs);
    unclaimed deposits;
    credit balances in the Cash Credit account; and
    deposits held as security for advances which are payable on demand.

Time Liabilities
Time Liabilities of a bank are those liabilities that are payable other than on demand.

These include
    fixed deposits;
    cash certificates;
    cumulative and recurring deposits;
    time liabilities portion of savings bank deposits;
    staff security deposits;
    margin held against letters of credit, if not payable on demand;
    deposits held as securities for advances which are not payable on demand; and
    gold deposits.

Other demand and time liabilities (ODTL)
ODTL includes:
    interest accrued on deposits;
    bills payable;
    unpaid dividends;
    suspense account balances representing amounts due to other banks or public;
    net credit balances in branch adjustment account;
    Cash collaterals received under collateralized derivative transactions.

Any amounts due to the banking system which are not in the nature of deposits or borrowing are also to be included in other demand and time liabilities. Such liabilities may arise due to items like (i) collection of bills on behalf of other banks, (ii) interest due to other banks and so on
Inter Bank Assets

Assets with the banking system include

    balances with banks in current account;
    balances with banks and notified financial institutions in other accounts;
    funds made available to banking system by way of loans or deposits repayable at call or short notice of a fortnight or less; and
    loans other than money at call and short notice made available to the banking system.

Any other amounts due from banking system which cannot be classified under any of the above items are also to be taken as assets with the banking system.
Liabilities not to be included in DTL / NDTL calculation

The following liabilities are not be included in the DTL calculation for purposes of maintaining CRR and SLR

    Paid up capital, reserves;
    Any credit balance in the Profit & Loss Account of the bank;
    Amount of any loan taken from the RBI;
    Amount of refinance taken from Exim Bank, NHB, NABARD, SIDBI;
    Net income tax provision;
    Amount received from Deposit Insurance and Credit Guarantee Corporation (DICGC) towards claims and held by banks pending adjustments thereof;
    Amount received from ECGC by invoking the guarantee;
    Amount received from insurance company on ad-hoc settlement of claims pending judgment of the Court;
    Amount received from the Court Receiver;
    The liabilities arising on account of utilization of limits under Bankers Acceptance Facility (BAF);
    District Rural Development Agency (DRDA) subsidy of Rs.10, 000/- kept in Subsidy Reserve Fund account in the name of Self Help Groups;
    Subsidy released by NABARD under Investment Subsidy Scheme for Construction/Renovation/Expansion of Rural Godowns;
    Net unrealized gain/loss arising from derivatives transaction under trading portfolio;
    Income flows received in advance such as annual fees and other charges which are not refundable;
    Bill rediscounted by a bank with eligible financial institutions as approved by RBI;
    Provision not being a specific liability arising from contracting additional liability and created from profit and loss account.

NDTL Computation

Computation of NDTL is a multi step process as follows :

    Compute Demand Liabilities to the banking system
    Compute Time Liabilities to the banking system

Take the sum of the above two to arrive at “DTL to the Banking System” - (A)

    Compute Demand Liabilities to others
    Compute Time Liabilities to others

Take the sum of the above to arrive at “DTL to Others” - (B)

Compute Other Demand and Time Liabilities - (C)

Calculate Assets to the banking system - (D)

Compute Net Inter Bank DTL by subtracting Assets to the Banking System from DTL to the banking system - (A-D)

If the Net Inter Bank DTL so calculated is negative or zero, it is ignored.

Thus NDTL is given by

NDTL = (A-D)+(B+C) if A-D is greater than zero,

NDTL = B+C if A-D is less than or equal to zero.
CRR Maintenance

Items on which CRR maintenance is exempt:

Banks are exempted from maintaining CRR on the following liabilities:

    Liabilities to the banking system in India.
    Credit balances in Asian Clearing Union (US$) Accounts.
    Demand and Time Liabilities in respect of their Offshore Banking Units (OBU)

For CRR purposes, NDTL should not include inter-bank term deposits / term borrowing liabilities of original maturities of 15 days and above and up to one year. Similarly banks should exclude their inter-bank assets of term deposits and term lending of original maturity of 15 days and above and up to one year for calculating inter bank assets (which is used to net off DTL and arrive at NDTL). The interest accrued on such deposits should also not be included.

As a consequence of the above, CRR is not maintained on
    Net Inter Bank DTL;
    Non Resident Deposits (NRE and NRNR);
    FCNR (B) - Short term and Long term;
    Exchange Earner’s Foreign Currency (EEFC) accounts;
    Resident Foreign Currency Accounts;
    Escrow Accounts by Indian Exporters;
    Foreign Credit Line for Pre-Shipment Credit Account;
    Overseas rediscounting of bills;
    Credit Balances in ACU (US dollar) Account;

The ASIAN TIGERS OR ASIAN DRAGONS is a term used in reference to the highly developed economies of HONG KONG, SINGAPORE, SOUTH KOREA, AND TAIWAN.

 TIGER CUB ECONOMIES collectively refers to the economies of INDONESIA, MALAYSIA, THE PHILIPPINES, AND THAILAND, the four dominant countries in SOUTH EAST ASIA.

The Gulf Tiger or Arab Gulf Tiger is a nickname used to describe the period of rapid economic growth in the city of Dubai. The boom that Dubai has been experiencing since the 1990s is still going on, transforming the city from a desert village to a world class economic hub.

BALTIC TIGER is a term used to refer to any of the THREE BALTIC STATES OF ESTONIA, LATVIA, AND LITHUANIA during their periods of economic boom, which started after the year 2000 and continued until 2006–2007. The term is modeled on Four ASIAN TIGERS AND CELTIC TIGER, WHICH WERE USED TO DESCRIBE THE ECONOMIC BOOM PERIODS IN PARTS OF EAST ASIA AND IRELAND, RESPECTIVELY.

TIMBI is an acronym for five countries projected to be leading EMERGING ECONOMIES, TURKEY, INDIA, MEXICO, BRAZIL, AND INDONESIA, IN THE NEXT HALF CENTURY. ALL FIVE COUNTRIES HAVE RELATIVELY LARGE POPULATIONS, POSITIVE POPULATION GROWTH RATES, AND ARE DEMOCRACIES.

MIKT (also known as MIST) is a neologism referring to the economies of MEXICO, INDONESIA, SOUTH KOREA, AND TURKEY. These countries also belong to Next Eleven countries.
MIKT was coined by JIM O'NEILL OF GOLDMAN SACHS, who is also the creator of the term BRIC

CELTIC TIGER (IRISH: AN TÍOGAR CEILTEACH REFERS TO THE ECONOMY OF THE REPUBLIC OF IRELAND BETWEEN 1995 AND 2008, a period of rapid economic growth. The Irish economy expanded at an average rate of 9.4% between 1995 and 2000 and continued to grow at an average rate of 5.9% during the following decade until 2008, when it fell into recession. The expansion underwent a dramatic reversal from 2008,[13] with GDP contracting by 14%[14] and unemployment levels rising to 14% by 2011.


According to Goldman Sachs review of emerging economies, by 2050 the largest economies in the world will be as follows: China, USA, India, Brazil, and Mexico

SOUTH AFRICA  MEXICO              BRAZIL        CHINA       MALAYSIA
PHILIPPINES       THAILAND          INDIA           TURKEY

Brazil, China, India, Mexico and South Africa meet annually with the G8 countries to discuss financial topics and climate change, due to their economic importance in today's global market and environmental impact, in a group known as G8+5.[13] This group is expected to expand to G14 by adding Egypt alongside the five forementioned countries.[

"TATRA TIGER" is a nickname that refers to the ECONOMY OF SLOVAKIA in period 2002 - 2007[1] and after 2010[2] following the ASCENDANCE OF A RIGHT-WING COALITION IN September 2002 which engaged in a program of liberal economic reforms. The name "Tatra Tiger" derives from the local TATRA MOUNTAIN RANGE.

Financial inclusion
means extending basic banking services at affordable prices to the low income and disadvantaged groups
Purpose:to connect the excluded with the formal banking system in order to help them obtain an understanding of the financial services available and equipping them with the confidence to make informed financial decisions.
Basic services include deposits / withdrawals, credit, remittance, investment, insurance etc

Hedge means
Making an investment to reduce the risk of adverse price movements in an asset. Normally, a hedge consists of taking an offsetting position in a related security, such as a futures contract.
An example of a hedge would be if you owned a stock, then sold a futures contract stating that you will sell your stock at a set price, therefore avoiding market fluctuations.

Investors use this strategy when they are unsure of what the market will do. A perfect hedge reduces your risk to nothing (except for the cost of the hedge)

Hedge funds refer to funds that can use one or more alternative investment strategies, including hedging against market downturns, investing in asset classes such as currencies or distressed securities, and utilizing return-enhancing tools such as leverage, derivatives, and arbitrage

Teaser Loan
An adjustable-rate mortgage loan in which the borrower pays a very low initial interest rate, which increases after a few years. Teaser loans try to entice borrowers by offering an artificially low rate and small down payments, claiming that borrowers should be able to refinance before the increases occur.

Treasury bills
A treasury bills nothing but promissory note issued by the Government under discount for a specified period stated therein. The Government promises to pay the specified amount mentioned therein to the beater of the instrument on the due date. The period does not exceed a period of one year. It is purely a finance bill since it does not arise out of any trade transaction. It does not require any ‘grading’ or’ endorsement’ or ‘acceptance’ since it is clams against the Government. Treasury bill are issued only by the RBI on behalf of the Government. Treasury bills are issued for meeting temporary Government deficits. The Treasury bill rate of discount is fixed by the RBI from time-to-time. It is the lowest one in the entire structure of interest rates in the country because of short-term maturity and degree of liquidity and security

CAR
CAR Stands 4 Capital adequacy ratio
wic determines the capacity of a bank in terms of meeting the time liabilities and other risk such as credit risk, market risk, operational risk, and others. It is a measure of how much capital is used to support the banks’ risk assets

Capital Adequacy Ratio (CAR)=
Bank’s Capital / Bank’s Risk Weighted Assets

MUTUAL FUND
A mutual fund is made up of money that is pooled together by a large number of investors who give their money to a fund manager to invest in a large portfolio of stocks and / or bonds

MONEY LAUNDERING
Money laundering is the practice of engaging in a series of financial transactions to conceal the ownership, source, control or destination of illegally gained money
Money laundering often occurs in three steps:
1 placement
2 layering
3 integration

CREDIT RISK
Credit risk is the risk of loss that may arise from the failure of a business partner (also known as a counter party) to reimburse a loan when it is due. For example, if a bank expects a counter party to reimburse a $10 million loan on a specific date, and the counter party fails to provide funds, the bank incurs a credit loss. A counter party usually fails to pay because of bankruptcy or temporary monetary difficulties

in short v cn say Credit risk is an investor’s risk of loss arising from a borrower who does not make payments as promised.

MARKETING RISK
means risk of failure of mktg strategy
becoz of various reasons like change in buyers taste , change in competitor mkt strategy , etc

RISK MANAGEMENT
is the process of measuring, or assessing risk and then developing strategies to manage the risk

1. What is a Repo Rate?
A: Repo rate is the rate at which our banks borrow rupees from RBI. Whenever the banks have any shortage of funds they can borrow it 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.
2. What is Reverse Repo Rate?
A: This is exact opposite of Repo rate. Reverse Repo rate is the rate at which Reserve Bank of India (RBI) borrows money from banks. RBI uses this tool when it feels there is too much money floating in the banking system. Banks are always happy to lend money to RBI since their money is 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.
3. What is CRR Rate?
A: 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 with the banks comes down. RBI is using this method (increase of CRR rate), to drain out the excessive money from the banks.3
4. What is SLR Rate?
A: 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. 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. SLR is used to control inflation and propel growth. Through SLR rate tuning the money supply in the system can be controlled efficiently.
5. What is Bank Rate?
A: Bank rate, also referred to as the discount rate, is the rate of interest which a central bank charges on the loans and advances that it extends to commercial banks and other financial intermediaries. Changes in the bank rate are often used by central banks to control the money supply.
6. What is Inflation?
A: 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 level of prices in Goods and services. Inflation happens when there are fewer 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.
7. What is Deflation?
A: 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.
8. What is PLR?
A: The Prime Interest Rate is the interest rate charged by banks to their most creditworthy customers (usually the most prominent and stable business customers). The rate is almost always the same amongst major banks. Adjustments to the prime rate are made by banks at the same time; although, the prime rate does not adjust on any regular basis. The Prime Rate is usually adjusted at the same time and in correlation to the adjustments of the Fed Funds Rate. The rates reported below are based upon the prime rates on the first day of each respective month. Some banks use the name "Reference Rate" or "Base Lending Rate" to refer to their Prime Lending Rate.
9. What is Deposit Rate?
A: Interest Rates paid by a depository institution on the cash on deposit.
POLICY RATES:
Bank Rate:10.25%
Repo Rate: 7.25%
Reverse Repo Rate:6.25 %
marginal standing facality rate : 10.25%

RESERVE RATIOS:
CRR: 4.00%
SLR: 23.0%

LENDING/DEPOSIT RATES:
base rate 9.70%-9.00%
PLR:
Deposit Rate: 7.50%-10.25%
Savings Bank rate: 4.00%

10. What is FII?
A: FII (Foreign Institutional Investor) used to denote an investor, mostly in the form of an institution. An institution established outside India, which proposes to invest in Indian market, in other words buying Indian stocks. FII's generally buy in large volumes which has an impact on the stock markets. Institutional Investors includes pension funds, mutual funds, Insurance Companies, Banks, etc.
11. What is FDI?
A: FDI (Foreign Direct Investment) occurs with the purchase of the “physical assets or a significant amount of ownership (stock) of a company in another country in order to gain a measure of management control” (Or) A foreign company having a stake in a Indian Company.
12. What is IPO?
A: IPO is Initial Public Offering. This is the first offering of shares to the general public from a company wishes to list on the stock exchanges.
13. What is Disinvestment?
A: The Selling of the government stake in public sector undertakings.
14. What is Fiscal Deficit?
A: It is the difference between the government’s total receipts (excluding borrowings) and total expenditure. Fiscal deficit in 2009-10 is proposed at 6.8% of GDP.
15. What is Revenue deficit?
A: It defines that, where the net amount received (by taxes & other forms) fails to meet the predicted net amount to be received by the government. Revenue deficit in 2009-10 is proposed at 4.8% of GDP.
16. What is GDP?
A: The Gross Domestic Product or GDP is a measure of all of the services and goods produced in a country over a specific period; classically a year. GDP during 2008-09 is 6.7%.
17. What is GNP?
A: Gross National Product is measured as GDP plus income of residents from investments made abroad minus income earned by foreigners in domestic market.
18. What is National Income?
A: National Income is the money value of all goods and services produced in a country during the year.
19. What is Per Capita Income?
A: The national income of a country, or region, divided by its population. Per capita income is often used to measure a country's standard of living.Per capita income during 2008-09 estimated by CSO: Rs.25, 494.
20. What is Vote on Account?
A: A vote-on account is basically a statement ,where the government presents an estimate of a sum required to meet the expenditure that it incurs during the first three to four months of an election financial year until a new government is in place, to keep the machinery running.
21. Difference between Vote on Account and Interim Budget?
A: Vote-on-account deals only with the expenditure side of the government's budget, an interim Budget is a complete set of accounts, including both expenditure and receipts.
22. What is SDR?
A: The SDR (Special Drawing Rights) is an artificial currency created by the IMF in 1969. SDRs are allocated to member countries and can be fully converted into international currencies so they serve as a supplement to the official foreign reserves of member countries. Its value is based on a basket of key international currencies (U.S. dollar, euro, yen and pound sterling).
23. What is SEZ?
A: SEZ means Special Economic Zone is the one of the part of government’s policies in India. A special Economic zone is a geographical region that economic laws which are more liberal than the usual economic laws in the country. The basic motto behind this is to increase foreign investment, development of infrastructure, job opportunities and increase the income level of the people.

RBI 21 July 2013 GENERAL AWARENESS

RBI 21 July 2013 GENERAL AWARENESS

NOTE BANKING TERM 20 TO 25 QUESTION ASKED

some question related to best actress,  rate , grand slam  mortgage

Operation flood is associated with dairy products

 Expand RFID radio freqency identification

 Study of worker and work place  ergonomics

 Indias population  121 crore 

 who is the governer of megalaya  kk paul

sbi card issued in kuwait for direct deposit

SBI EXPRESS RUPEE  From Gulf sbi express remittance

The `brown label' has come up as an alternative between bank-owned ATMs and 'white label'
ATMs. As in India white label ATMs were not allowed by RBI
ATM machine is owned by a service provider, but cash management and connectivity to banking
networks is provided by a sponsor bank whose brand is used on the ATM

in july  India has signed trade defence

 best actress iifa awards 2013 vidya balan

samsung hyundai south korea

WEF asian edition  Myanmar

wimbledon Marion Bartoli     2013

 why does CTS 2010 implemented  faster clearing process to make settelment faster

Cheque truncation (check truncation in American english) is the
conversion of physical cheque into a substitute electronic form for transmission to the paying bank. Cheque truncation eliminates cumbersome physical presentation of the cheque and saves time and processing costs.

taxes on imports Custom Duty

price fall deflation

Not affect current deficit account

International Centre for Settlement of Investment Disputes Washington, D.C

National Development Council approves 12th Five Year Plan

repo rate 7.25 %

 reverse repo rate 6.25 %


saving bank rate fixed by individual bank


RBI 20 july 2013  GENERAL AWARENESS


    1) when bank gives loan against LIC policy which value they
    consider? face value, surrender value, insured value?
    2.) what is inflation?
    3.) 17th SAARC summit theme?
    4.) which country's share market named hangseng?
    5.)how many years has been completed by SEBI?
    6.) Wimbeldon men's title?
    7.) what is fast clearing of cheques in banks?
    8.) what impact depreciation of rupee has on Gold prices and its demand?
    9.) what is prime lending rate given by banks?
    10.)find out correct staement regarding money bill? like if it can
    be introduced in lok sabha only or in rajyasabha? 14 days hold by
    rajya sabha..rejection of bill by rajya sabha/
    11.) which committe on human resource managament has submitted its
    report giving 105 recommendations?
    12.)food security bill is meant for how much perecnt to rural people
    in india?25% 50% 75%


terminology 20-30 questions reference to RBI IBA, SEBI
What is the tax for Rs 500000?
Demat account used for ?
When insurance is given by banks what they look upon ?
Current CRR rario?
USB in bank terminology?
2012  FRENCH WOMENS TITLE?
International  womens day?

1. What is the tax for Rs 500000?
2. Demat account used for ?
3. When insurance is given by banks what they look upon ?
4. Current CRR Ratio?
5. USB in bank terminology?
6. French Open 2013 Women’s Title won by Ans. Serena Williams
7. International women’s day?Ans. March 8
8. ISRO headquarters?Ans. Bangalore
9. Banking ombudsman given authority by
10. Life of Indian currency
11. White label ATM?
12. Book by written Amartya sen
13. ARCIL function
14. Question on bharat nirman