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Why Tata Motors has selected Sanand As per their location?Land which has been provided to Tata Motors for establishment of Nano plant was already under the possession of the government of Gujarat which reduced time for relocation of plant, while government of Gujarat was providing land at cheaper rate than market rate which has also been a matter of controversy for some time. Weakness of singur became strength of Sanand.

Where Tata Motors manufacture Nano apart from Sanand?Except Sanand, Tata motors also manufacture Nano at Pantnagar, Pune Maharashtra. Sanand Plant has begun with capacity to manufacture 250000 car p.a. which is expandable upto 500000 units pa.

What is an important of 11/09?Twin Tower World Trade Centre located at Lower Manhattan, New York, destroyed on Sptermber 11 2001, Gutkha shall be prohibited from today in Gujarat. Maharashtra government recently imposed a comprehensive ban on gutka and pan masala. Gutka is also banned in Kerala, Madhya Pradesh and Bihar, while Rajasthan government had last month announced its decision to ban the product.Its important for me personally is I got my first job appointment letter on this day.

What is causing devaluation of rupee against dollar?When we are running government in coalition environment, it is very difficult to take decision on foreign direct investment and once we open our market we must keep on renewing our policies to attract foreign direct invest which India government sometime failed to do.

Being important export destination eurozone crisis has affected India’s export growth, while we are increasing our import of oil and gold which is giving birth to twin deficit of fiscal and current account.Recent corruption scam and political uncertainties has also lead to rupee depreciation.

How exchange rate of the currency is determined?Exchange rate is the rate between two currencies at which one is exchanged for another. Exchange rate to the extent I know is decided by the market factors like demand and supply of the currency. In the long run rates of various currencies are determined by some fundamental like:Balance of payment, Economic Growth Rate- high growth leads to rise in imports and exports.Interest Rate: High domestic rates tends to attract overseas capital thus curreny shall appreciate in short term Fiscal Policy : like expansionary policy leads to, high liquidity and kick starts high growth rate

What is Bill discounting?Under this facility to seller or exporter, bank purchases bill having maturity on some future from seller (generally its customer) and pays him the amount of bill after deducting some commission and discount and forwards bill to LC issuing bank or reimbursing bank as the case may be who on maturity date shall reimburse the discounting bank

What is usance bill?Bill of exchange which will be paid when it is presented to drawee within a fixed period from the presented date or after a fixed period of B/L date. Sight bill which is paid when presented

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What is bill collection?Collection is one of the conventional methods of payment in international trade whereby the seller forwards financial and/or commercial documents to the buyer against cash payment or acceptance of a bill of exchange. In collection, banks control the release of documents and payments based on the Uniform Rules for Collection but do not commit to pay the seller, unlike documentary credit operations. There are three types of collection, documentary collection, clean collection and direct collection. Bill sent on collections are governed by URC 522, which stands for uniform rules for collection, ICC publication number 522. Banks are permitted to invest in equities subject to a ceiling presently 5% of its total assets.

What is NRI?As per FEMA 1999, a person resident outside India who is a citizen of India, or a person of Indian origin who is citizen of of any other country other than Bangladesh or Pakistan who at anytime held an Indian passport or had parents of Indian origin or a person is a spouse of Indian citizen.

What is OCBs?OCBs are overseas corporate bodies they are the firms, trusts or companies predominantly owned by non resident Indians, NRI must hold at lease 60% of its share.

NRO Account?NRO accounts are rupee accounts maintained by any person resident outside India an also by foreign tourists who is on short visit to India . unlike NRE account this account can be opened jointly with resident Indian, maintained for credit a accruing in India out of investment

made prior his leaving india. Can be maintained in Saving Account, current account, recurring account and as term deposit. TDS deductible.

Bank to bank reimbursement is governed under the URR 525 rules.Certificate of Origin determines the origin of goods. It is issued by chamber of commerce.Insurance policies of goods unless mentioned specifically, shall be deemed to be of 110% of CIF value of goods.

What is crystallization?Crystallisation means a conversion of foreign currency bill which is outstanding on 30th

after NTP due date. All the bill purchased/negotiated/discounted shall be crystallized by converting it into rupee liability at bill selling rate on 30th day after expiry of NTP in case of demand bill OR on 30th days after expiry of notional due date.

What is stand by letter of credit?Sir, stand by letter of credit is almost a bank guanretee, this type of LC is used in countries where there is a restriction in opening guarantee, used mainly in situation of ‘non-performance’. Such LCs are used in countries like USA where they are substitute of financial or performance guarantee.

Export Document SubmissionExport of goods from India, whether in physical form or any other form requires to be declared in prescribed forms:GR Form: All exports other than in Post parcelPP Form: All exports in form of parcelSoftex: Export of softwaresSDF Form: with introduction of EDI- electronic data interchange, SDF – Statutory Declaration Form has replaced GR forms.

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Export is required to submit the export documents along with the duplicate/exchange control copy of GR/PP/SOFTEX form within 21 days from the date of shipment to an authorized dealer for collection purchase.

If the export proceeds are not realized in time then exporter should apply to its AD who handled the documents in ETX form for extension of time, Ads are permitted by RBI to grant extension of upto 6 months beyond 12 months. It is to be reported to RBI in XOX statement which must be submitted in December & June each year

What is EPC or Pre-shipment Finance?EPC stands for Export Packing Credit. It is an essentially a working capital required to procure, process and manufacture goods for the purpose of export. For allowing EPC it is pre-requisite that the borrower must have a FIRM export order or an export letter of credit, and the loan must be liquidated out of its relative export. Maximums concession rate for export must be 2.5% below BPLR. Banks cannot EPC 180 days and 360 days, but EPC granted beyond 360 days cannot avail concessional rate.

What is Post Shipment finance?Post shipment finance is essentially an advance against receivables, which is in the form of export document. It involves handling of export documents, sendint it to foreing bank and collecting proceeds thereof.

What is the difference between export bill purchased/discounted and export bill negotiated?Export bill representing genuine trade transactions and strictly drawn in terms of contract may be purchased/discounted by bank. Sight bills are purchased where usance bills are

discounted banks. They are not backed by Letter of credit, risk of non payment is higher. While export bill negations are the transaction backed by the letter of credit and are governed by the UCPDC.

Some of the discrepanciesLate shipment of goods,Submission of document after LC expiresExcess drawing of LCShipment made from and/or shipped to the ports other than stipulated in LC.

What is NTP?NTP stands for Notional Transit Period which is used for determining the due date of all foreign currency bills, for demand bills they are 25 from the date of handling, for usance bill it is usance plus 25 days. Banks allows concessional interest rate for NTP bills

What is PCFC?PCFC stands for Pre-shipment Credit in Foreign Currency, it can be allowed to exporters in foreing currency, as being allowed in INR. The PCFC can be allowed in USD, Pound Sterling, Euro or JPY. The PCFC can be allowed for period of maximum 180 days. The spread for PCFC is related to international reference rates, such as LIBOR/EURO banks are not allowed to charge 2% over the benchmark for 180 days. PCFC can be liquidate by discounting / rediscounting the foreign currency bills.

What is gold card status?Introduced by foreign trade policy of 2003-04 gold card status scheme is for creditworthy exporters with god track record for easy availability of export credit on the best terms.

What is Factoring?

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Factoring may be defined as a continuing agreement between a financial institution and a business concern selling goods to track customers on Open account basis. Whereby factor(bank) purchases the book debts of seller(central function of factoring)

In terms of RBI guidelines, an AD has to ensure receipt of Bill of entry in all cases where the value of foreign remittances for import exceeds USD 100000 or its equivalent, within 3 months from the date of remittance.

If a person wanted to make remittance in excess of USD 100000 or its equivalent as advance payment for import they must produce standby letter of credit or bank guarantee issued by bank of international repute (not applicable if approval by board of director of bank)

All cases beyond USD 5000000 should be referred to RBI, for prior approval.

Physical import into India must be made within the period of six month from the date of remittance and 3 years if capital goods, and if the good is not imported in India, AD should ensure that the amount of remittance is repatriated to India or utilized for other permissible use.

Buyers CreditSir buyers credit is arrangement by buyer made to settle its import transaction from the bank/institution situated outside India, seller/seller’s bank shall get payment on due date from such Institution. This arranging institution shall charge some interest and charges if any to importer.

What is Supplier Credit?

Supplier’s credit is credit extended by the overseas suppliers of goods to the importer. Payment terms are either sight or credit. The period of credit depends on the requirement of seller to increase the sales. For a credit for a period of more than six months and less than three years has been termed trade credit and any credit extended for three years or more shall be in category of ECB.

What is ECGC?ECGC stands for Export Credit Guarantee Corporation established by Government of India in 1957 to promote export and secure the exporter from various risk associated with export business. Like failure of buyer to pay the dues, or other political problems also.

International Banking Statistics return has to be filed by the banks quarterly on all international assets and liabilities of the bank.

BAL Statement is statement showing balance in nostro and vostro account.

What is the main difference in FEMA and FERA?Sir to the extent I know main difference is that, under FERA any violation of act was dealt with under criminal law, while under FEMA they are dealth with under Civil Law only

A person resident in India can possess foreign currency notes which must not exceed USD 2000 or its equivalent but they can possess coin at any amount.

Traveler should surrender unspent foreign exchange within 180 days from his return

What is LAF or Liquidity Adjustment Facility?

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Sir, liquidity adjustment facility is the principle instrument of the reserve bank of India to monitor day to day liquidity in the marker which comprises of the Repo and Reverse Repo instruments. RBI under this system conducts daily auction of Repo/Reverse Repo for overnight funds. RBI may conduct repo auction twice or thrice a day, as the banks need to maintain their liquidity to meet payment obligations under RTGS system.

What is derivative?Derivative as its name suggests does not have any independent value but it derived its value from the underlying security. Market can be financial or commodity.

What is Bank Guarantee?A bank guarantee is a one-way contract between a bank as the guarantor and a beneficiary as the party to whom a guarantee is made bank on request of applicant and after assessing its credit worthiness and obtaining proper collateral issue bank guarantee which means on the event of failure of applicant to fulfill his obligation bank shall fulfill the same.

What is letter if credit?A letter of credit is a singed or authenticated document issued by buyers bank embodying undertaking to pay certain amount of money upon presentation of documents.

What is the difference between LC and BG?Letters of credit ensure that a transaction proceeds as planned, while bank guarantees reduce the loss if the transaction doesn't go as planned.

A letter of credit is an obligation taken on by a bank to make a payment once certain criteria are met. Once these terms are completed and

confirmed, the bank will transfer the funds. This ensures the payment will be made as long as the services are performed.

A bank guarantee, the sum is only paid if the opposing party does not fulfill the stipulated obligations under the contract.

What is Bill of entry?It is a document certifying that the goods of specified description and value are entering into the country from abroad. There are three types of bill of entry:1. Bill of entry for home consumption – submitted goods when obtained on cash clearance basis2. Bill of entry for Warehouses – submitted when good are not required immediately 3. Bill of entry for Ex-Bond clearance - is used for clearing goods from the warehouse on payment of duty. The goods are classified and valued at the time of clearance from the Customs Port.

What is Bill of lading?This term is normally used in shipping industry. The receipt given by a transportation company to an exporter when the he accepts goods for transport. It includes the contract specifying what transport service will be provided and the limits of liability.

What is merger and acquisition? What is difference between them?Merger or amalgamation of the company means combination of two or more companied in such a manner so that one survives its name and identity whil other(s) lose their corporate existence.

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Acquisition or take over of the company is refered as acquiring controlling stake in the ownership of a company by another entity.

What is financial literacy?Financial literacy is the process by which people improves their knowledge & understanding about various financial products and services.

What is bill of exchange?Bill of exchange is defined as an instrument in writing signed by maker containing as unconditional order to pay a certain sum of money and money only to a person, named in the instrument or to his order to the bearer on a certain fixed future date. (Section 5 NI Act)Hundi is the Indian name of bill of exchangeWhat is retirement of bill – it s payment of bill before due date

What is Promissory Note?An instrument in writing containing an unconditional undertaking singed by the maker to pay a certain sum of money to or to the order of certain person or the bearer of the instrument (Section 4 NI Act)

What is fund based advances?Fund Based Limit is a limit in which the Company is getting money actually(Cash). Whereas in non-fund base limit bank make payment on behalf of company.Cash Credit, Overdraft, Loan & Advances, Retail finance etc.

XOS Statement Statement of particulars of export bills outstanding beyond the prescribed period/due fdate of realization on half yearly basis,

What is BEF Statement:Sir, BEF statement is related to non submission of documents evidencing import, this is the

statement showing the import transaction for which importer has failed to submit documents. In terms of RBI guidelines, an AD has to ensure receipt of Bill of entry in all cases where the value of foreign remittances for import exceeds USD 100000 or its equivalent, within 3 months from the date of remittance.

EBW : Statement showing particulars of export bills permitted to be written off for the year.

Form A2This application cum declaration form has to be filled in when purchasing Foreign Exchange for the purposes of non import transaction like Emigration, Maintenance of Close Relatives, Medical Treatment, Employment Abroad, etc.

Form A1This is the application cum declaration form required to submit by applicant who wanted to remit funds more than $ 500 in respect of import. There are three types of form A1 (ACU – for payment made through Asian clearing Union, FC, for remittance for import in foreign currency, NRB – Amount transferred to Non Residents account for the purpose of import)

SOFTEX: For declaration of Software Exports through data-communication links and receipt of Royalty on the Software Packages/Products exported

What is R-Return & Why R-retutn?Inflow and outflow of foreign exchange is of immense importance to GoI and RBI and as a member of IMF India has an obligation to present the quarterly BoP statistics to IMF. That is why all foreign exchange transactions should be routed through banking channels and they In turn being authorized dealers report such

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transaction in statement called R-Return. They are to be submitted fortnightly within seven days from passage of every fifteenth day of the month. There are two types of R-Return. Nostro and Vostro. Nostro Account is the account which authorized dealer maintain with bank abroad.And Vostro Account is the account which non-resident bank maintain with Authorized dealer in India

Do you know what are Incoterms?IncomTerms stands for “International Commercial Terms” these terms gives the clear picture of who will bear to costs of freights, insurance, duty etc. The latest version of Incomterms published in 1990 defined 13 such terms.EXW-Exworks : Buyer has to bear the full cost, from sellers work to desired destination.FCA : Free Career : Seller assumes the obligation to deliver the goods when he hands the goods to the carrier named by buyerFAS : Free Alongside Ship: Seller obligation is to bring the goods to named port and carrier by buyer and buyer will assume all costs and risk from that moment.FOB : Free On Board: Sellers obligation to prepare the goods, pack them, place them on the vessel as per term of contract and obtain bill of lading evidencing shipment.CFR : Cost & Freight : Seller prepares goods, pack, transport upto port and arrange to place the goods on board a vessel and obtain bill of lading with freight paid.CIF : Cost, Insurance & Freight: Under this contract price quoted by buyer shall include costs of goods, freight charged upto named destination & insurance cover for voyage. Unless specified 110% insurance cover. CRT : Carried paid to : when goods are deliver to carried risk for loss or damage of goods

passed from seller to buyer other tasks taking place before such delivery shall be borne by seller.CIP : Carriage and Insurance Paid: Seller has to pay carriage and insurance charges

UCPDC 600 UCPDC Stands for Uniform customs & practice of documentary credit ICC publication 600 which in effect since July 1, 2007. They are globally accepted set of ruled followed for transaction taking place on base of documentary credit.Article 3 “A credit is irrevocable even if there is no indication to the effect” Revocable LC cease to exit from UCP 600Article 10 “A credit can neither be amended nor cancelled without the agreement of issuing bank, confirming bank, & beneficiary”Article 6 “Last date for honor and negotiation will be deemed to be the expiry date of presentation”Article 14 “ UCP has brought down the number of reasonable timefrom 7 days to 5 days “banking days” to examine the documentsArticle 15 Deals with the complying presentation

Period of 21 days for presentationUCP 600 has 39 articles.

What is management?According to Harold Koontz, “Management is an art of getting things done through and with the people in formally organized groups. & I believe management is “an art of planning, organizing, directing, & controlling all factors of production of goods and services in such a manner so that organization goal is achieved.

What is financial management?

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In simple terms financial management is “Management of rupee from where it comes and where it goes” Formally financial management means planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the enterprise.

What are the functions of Finance? Determination of the financial requirements of the firm, Obtaining necessary finance from the necessary sources at minimum possible cost Allocation of finance in different assets

Can you define what marketing management is?Sir, I am unable to recollect any standard definition but in simple terms "marketing management is the management process responsible for identifying, anticipating and satisfying customer requirements profitably in such a manner so that customer remains delighted and loyal to company.

What is the difference between Management accountancy & financial accountancy?Management accounting provides information to people within an organization while financial accounting is mainly for those outside it, such as shareholders

Financial accounting is required by law while management accounting is not. Specific standards and formats may be required for statutory accounts such as International Financial Reporting Standards.

Financial accounting covers the entire organization while management accounting may

be concerned with particular products or cost centers.

What are the principles of management?Division of Work, Authority & Responsibility, Discipline, Unity of Command, Unity of DirectionSubordination of individual interest (to the general interest), Remuneration. Scalar chain

What are the various forms of organizations?Sole proprietorship, Joint Hindu Family Firm, Partnership Firm, Joint Stock Company, Co-operative Society

What are minimum member of Joint Stock Company Private Limited?As per companies Act 1956 private limited companies can be formed by at least two members having minimum paid up capital of Rs. 1 lakh and members in such company cannot exceed 50

What are minimum members of JSC Public Limited Company?As per companies Act 1956 private limited companies can be formed by at least seven members having minimum capital paid up of Rs. 5 lakh and there is no ceiling in number of maximum members What is the number of partners as per Partnership Act 1932?Indian Partnership Act 1932 does not provide any ceiling on number of partners, but sir as per section 11 of Companies Act 1956 partnership should not exceed 20 members unless registered as company or formed in pursuance of law

In the partnership firm, if the there is no partnership deed or deed is silent then?

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Profit sharing ratio shall be equal, No remuneration, No commission, No salary shall be paid to partner,

What is micro economics?Microeconomics is a branch of economics that studies the behavior of individual households and firms in making decisions on the allocation of limited resources

What is macro economics?Macroeconomics is a branch of economics dealing with the performance, structure, behavior, and decision-making of the whole economy. 

What is personnel management?Acquisition, Development, Motivation & Maintenance of Human Resource is called HRM or PM

What is managerial economics?Managerial economics is concerned with application of economic concepts and economic analysis to the problems of formulating rational managerial decision.

Do you remember any Industrial and Commercial Law?Indian Contract Act 1872, Sales of Goods Act 1932, Industrial Dispute Act, 1947

What is the difference between selling and marketing?Sir first of all marketing is broad concept while selling in narrow concept, sir sales is a part of marketing. Marketing starts when we approach a customer and unlike selling it continues after sales also like after sales services comes under marketing.

What is product differentiation?

Sir to launch and cater a product in different ways and with little or big changes. Like sir maggy’s new product in the same era is masala maggy to retain and attract new customers.

What is the elasticity of demand?Term elasticity of demand represents the measurement of what change occurs in demand of the products with the change in other factor or variables. Like price of the goods, price of substitutes, supply of goods etc.

What is price elasticity of demand? Concept developed by Alfred Marshall, shows what change occurs in the demand of the goods or services with the change in its price (provided that other determinants shall remain constant)What are the determinants of demand?

1. Price of the goods,2. Supply of the goods3. Availability & Price of the substitute

goods4. Income5. Consumer Preference

Bharat, what is the law of diminishing marginal utility?Law of diminishing marginal utility means that the first unit of consumption of a good or service yields more utility than the second and subsequent units, and utility is bound to decrease with each subsequent consumption.

What is cash flow statement?Cash flow statement is a financial statement that breaks the business activities in to operating, investing and financing activities and shows how such activities affects the cash and cash equivalents.

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What is the difference between cash & fund flow statement?While funds flow statement reveals the change in the working capital of a company between two balance sheet dates while cash flow statement reveals the change in the cash position of the company between two balance sheet dates.

What is capital budgeting?Capital budgeting is the planning process used to determine whether an organization's long term investments such as new machinery, replacement machinery, new plants, new products, and research development projects are worth pursuing. Following methods are used : Accounting rate of return, Payback period Net present value, Profitability index,

Internal rate of return

What is cash budgeting?A financial projection of cash disbursements and receipts during the next planning period.

What is break even point?The break-even point (BEP) is the point at which cost and revenue are equal: there is no net loss or gain, and one has "broken even".

What is participative management?An open form of management where employees have a strong decision-making role. Participative management is developed by managers who actively seek a strong cooperative relationship with their employees.

What is brainstorming?Brainstorming is a group creativity technique by which efforts are made to find a conclusion for a specific problem by gathering a list of ideas

spontaneously contributed by its members. Propounded by  Alex F. Osborn

What is world trade organization?The world trade organization is the international organization whose primary purpose is to open trade for the benefit of all. It was established in 1995 replacing GATT – General Agreement on Trade & Tariffs. Recently Russia has joined as the 156th member of WTO, India is the founder member of WTO.

What is world Bank?The world bank is the financial institutions which provides finance to countries in Need, meay investing in countries in need. Official goal of world bank is reduction of poverty. It is different from world bank group.

World Bank Group comprises of International bank of Reconstruction and Development, & International Development Association, International Finance Corporation & Multilateral Investment Guarantee Agency.

What is International Monetary Fund?IMF is not bank, it is club, on joining each member country pays subscription called quota, Quota determines countries subscription to IMF as well as determines the limit upto which country can receive finance from IMF.

What is the difference between World Bank and IMF?

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Bothe IMF and World bank were setup by Bretton Woods Conference of July 1944 as institution to strengthen international economic cooperation. But World Bank is a bank, while IMF is kind of club or union, IMF provides its members policy advice, technical assistance, temporary loans While Word Bank promotes long term economic development and povery reduction by helping countries implementing sepcificr sector reforms, implement specific projects.

What is Settelemt risk?Settlement risk is the risk that the bank shall not receive funds from its counter partied on due date. Herstatt Risk is another name of the settlement risk.

What is management buyout?Management buyout is said to have occurred when existing management of the company undertakes to purchase the assets of the company from the present owner of the company.

BANKINGAs per Section 6 of the Banking Regulation act 1949, Banking means accepting for the purpose of lending or investment of deposits of money received from the public, repayable on demand or withdrawable by cheque, draft, order or otherwise.

Business activity of accepting and safeguarding money owned by other individuals and entities, and then lending out this money in order to earn a profit.

From where the word bank came?The word bank came from French word banque, which literally meant counter which were used as desks or exchange counters.

What are the Six C’s of banking?Character, Capital, Capacity, Collateral, Condition, Compliance

Various Acts affecting banking in India?Indian Contract Act 1872Reserve Bank of India Act 1934Banking Regulation Act 1949SARFAESI Act 2002Payment & Settlement Act 2007

Banking Activities can be divided into?Retail Banking, Corporate Banking, International banking and Investment Banking

What is corporate Banking?Financial services specifically offered to corporations such as cash management, financing, underwriting, and issuing of stocks, bonds, or other instruments. Financial institutions often maintain specific divisions for handling the needs of corporate clients, separate from consumer or retail banking activities for individual accounts.

What are the different channels of Banking you use in your routine lifeBranch, ATM, Mail, Telephone, Online Banking.

What is the relationship between a banker and a customer?Sir relationship between banker and its customer is transactional in nature, it depends on the nature of transaction, to name some of them Debtor-Creditor, (in case of Deposit)

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Creditor-Debtor, (in case of Loan) Bailor-Bailee, (when physical possession of security for loan is obtained called) etc.

What are the functions of the Bank1. Accept deposits & ensure its safegaurs2. Provide various kinds of loan and advances

facility3. Provide locker facility for safe custody

articles,4. Provide various payment collection and

settlement facilities5. facilitates trades and business in economy

What are the types of accounts?Savings Accounts, Current Account, Recurring Deposit Account, Cash Credit Account, Overdraft Account, Loan Account (DL & TL). Contingent Accounts. NRE Accounts, FCNR Accounts, EEFC Account.

What is the difference between current account and saving Account? Generally SB account involves low value

transactions while CA involves large value transaction.

Interest paid on SB account (Daily Calculation Basis) while no interest is paid on Current Account.

Saving Bank account does not have overdraft facility while Current Account can have such facility.

There are limited number of transactions in SB account while there is no such limit on number of transaction in current account.

What is the difference between Demand Loan & Term Loan?

What is NRE Account?

Sir I have never dealt with such account, NRE account stands for Non Resident External Rupee Account, an NRI can open NRE Rupee Account with the funds remitted to India through bank abroad. Transfer from another NRE Rupee account or FCNR A/c is also permitted, NRE Account can be opened by two or more NRIs jointly, joint account with resident is not permitted.

What is FCNR (B) accounts?NRIs, PIOs, residing outside India can open FCNR (B) accounts. FCNR (B) accounts are maintained as fixed deposits in certain designated currencies USD, GBP, JPY, EUR, CAD, AUD. Maintained in Banks in India in the above mentioned foreign currencies and interest is also earned in such foreign currencies. Repatriation of funds (principal, interest) is allowed. Interest is fully exempted from income tax.

What is an EEFC Account and what are its benefits? Exchange Earners' Foreign Currency Account (EEFC) is an account maintained in foreign currency with an Authorized Dealer. It is a facility provided to the foreign exchange earners, including exporters, to credit 50 per cent of their foreign exchange earnings to the account, so that the account holders do not have to convert foreign exchange into Rupees and vice versa, thereby minimizing the transaction costs. All categories of foreign exchange earners, such as individuals, companies, etc. who are resident in India, may open EEFC accounts. An EEFC account can be held only in the form of a current account. No interest is payable on EEFC accounts

What is KYC?

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KYC is an acronym for “Know your Customer”, a term used for customer identification process. It involves making reasonable efforts to determine true identity and beneficial ownership of accounts, source of funds, the nature of customer’s business, reasonableness of operations in the account in relation to the customer’s business,  Is there any legal backing for verifying identity of clients, Yes. Reserve Bank of India has issued guidelines to banks under Section 35A of the Banking Regulation Act, 1949 and Rule 7 of Prevention of Money-Laundering Rules, 2005.

What is a Negotiable Instrument?Negotiability means transfer of an instrument from one person to another person or entity. The transfer should be without restriction and in good faith. Draft was not included and was made included in the Section 85(a). Section 4 deals with promissory notesSection 5 deals with Bill of ExchangeSection 6 deals with Cheque

Is currency note a negotiable instrument?Currency Note is not a negotiable instrument as per section 21 of the Indian Currency Act .

Negotiable Instrument Act 1881Negotiable Instruments Act 1881 had been passed in 1882 and was modified in 1989 and 2002, as some more sections were added into the age old law. This act is applicable in entire India, including Jammu & Kashmir(from 1956 onwards). The act has provisions of Negotiable Instruments such as Promissory Notes, Checks, Drafts, Bills of exchanges etc. The NI Act has 147 sections.

What is payment in due course?Payment in due course means a payment in accordance with the apparent tenor of the

instrument in good faith and without negligence to any person in possession thereof under circumstances which do not afford a reasonable grounds for believing that he is not entitled to receive the payment of amount therein mentioned.

What is Cheque ?Cheque is type of bill of exchange governed under section 6 of negotiable instrument act. A cheque is the bill of exchange drawn on specified banker and not expressed to be payable otherwise than on demand and it includes the electronic image of a truncated cheque and a cheque in the electronic form.

What is Bearer cheque?This is the cheque which is paid to the any person who presents it to the bank not just to the person named on the cheque

What is endorsement and what are the kinds of endorsement?According to section 15 of the NI Act 1881, when maker or holder of a negotiable instrument sings the same for the purpose of negotiation, on the back or face thereof or on the slip annexed thereto are said to be endorse the same.

Blank Endorsement: Merely signed on the back or face of instrument without mentioned the name in whose favor it is endorsed, called blank endorsementEndorsement in full: When endorser makes the direction to pay the amount specified in the cheque to a certain person or his order then the endorsement is in full.Restrictive endorsement:

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When endorsement restricts the negotiation then it is called restrictive endorsement like “Pay to Bharat Varu only”

What is the difference between cheque and draft?

1. Checks facility is available to only account holders, while draft facility is available to anyone say non account holders also.

2. Checks are mainly used to pay personal due and utilities etc. but there is no guarantee of payment WHILE drafts are issued to transfer money from one place to another place & there is a certainty of payment.

3. In checks drawer is customer of bank While in draft drawer is banker itself

4. Checks can be dishonored while draft cannot be dishonored

5. Stop payment facility is available with checks while no such facility is there for draft

What is the difference between DD & BC or Pay Order?Main difference between demand draft and pay order is of jurisdiction, banks issued bankers cheque or pay order for local payment or purpose where collection shall be honored by issuing branch, while in case of DD is shall be honored by another branch of the bank and they are payable outstation.

What is Cheque Truncation?The NI act was amended in 2002 and after that Cheque also means a Cheque in electronic form. The clearing of checks on the basis of electronic checks is called Cheque Truncation. The Electronic image is generated and it is used for clearing, thus at that point the Physical Movement of the Cheque is stopped. This

results in faster clearance, (T+0) in local and T+1 in intercity clearing. Faster realization is accompanied by a reduction in costs for the customers and the banks. Do you any idea about latest trends in clearing system? Another development is ECCS which stands for Express Cheque Clearing System, developed by Image infosystem Pvt. Ltd.

What is Speed Clearing?Speed Clearing refers to collection of outstation cheques (a cheque drawn on non-local bank branch) through the local clearing. It facilitates collection of cheques drawn on outstation core-banking-enabled branches of banks, if they have a net-worked branch locally.

Minor AccountTo inculcate the habit and thrift of saving banks allows person above the age of 10 to open and operate the account with the bank.

A guardian shall not be authorized to operate the account o minor in the event of minor obtaining majority, except confirmation received from minor, Two minors cannot open joint account, Natural Gaurdian is generally father but mothers are allowed to sign as natural guardian (except Muslim minors)

What is CBS?CBS stands for Core banking Solution [In reserve bank of India CBS also stands for Consolidated Banking Statistics]

CORE stands for what in Core Banking?Centralized Online Real Time Environment

What is Internet BankingNowadays banks are providing Internet Banking service to their customers with help of which

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customer can do various transaction with help of their User ID and Password over Internet.Advantage of Online BankingWe can carry out all banking transactions at our own convenience and do not have to depend on normal bank timings.Since everything is computerized, we save all the paper work and we save the trouble of maintaining physical records.There are no extra charges and these online banking services are absolutely free. The customers can be offered more services through online banking.Any time banking Disadvantage of Online BankingOnline banking has reduced the bank to customer personal interaction,When you are entering online banking instructions there is always a chance that the information may be leaked or your account can be hacked and all your confidential information is leakedWhen you are using internet banking the internet security is a big problem faced by many banks.

Which asset is called NPA?All those assets with banks who stops generating income are called NPAs.Those assets on which installment remain overdue for the period more than 90 days for Term LoanIn respect of CC/OD account remains out of order. The bill remains overdue for the period of more than 90 days in case of bill purchased and discounted. Installment in short duration crop remains overdue for two crop season, & one crop season for long duration crop.

What is a substandard asset?

Sub standard assets are those assets which remained NPA for a period less than or equal to 12 months. Requires provision of 10% secured portion and another 10& for unsecured portion.

Doubtful assetsAssets which remain in sub standard category for the period of 12 months 100% to the extent to which the advance is not covered by the realizable value, if assets remain in doubtful for upto one year 20%, if one year to three years 30%.

What are loss assets?Loss assets are those where loss has been identified by the bank or internal or external auditors or the RBI inspection but amount has not been fully written off. 100 percent of outstanding should be provided for

What are the steps to be taken to reduce NPA?Sir, I would suggest various steps like, proper credit evaluation process with help of CIBIL verification, Regular followup and inspections would provide some help, Which shall in turn help in minimizing the chances of assets turning NPA.For existing NPAs there are provisions like SARFAESI Act 2002, Debt Revocery Tribunals etc.

What is SARFAESI Act?The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, allows banks and financial institutions to auction properties (residential and commercial) when borrowers fail to repay their loans.

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It enables banks to reduce their non-performing assets (NPAs) by adopting measures for recovery or reconstruction.This act enables the banks to issue notices to defaulters who have to pay the debts within 60 days. Once the notice is issued the borrower cannot sell or dispose the assets without the consent of the lender. The Securitization Act further empowers the banks to take over the possession of the assets and management of the company. The lenders can recover the dues by selling the assets or changing the management of the firm. The Act also enables the establishment of Asset Reconstruction Companies for acquiring NPA.

The case of maradia chemicals and union of India is related to SARFAESI Act 2002 which is effective from 21.06.2002To form securitization company organisation must register with SEBIRegulatory authority of the securitization company is Reserve Bank of IndiaTo be a sponsor of Securitization company person must hold 12% of the paid up capital of Company

What are Debt Recovery Tribunals?To reduce the time for settling cases of NPAs Narsimhan Committee report of 1991 suggested setup of Debt Recovery Tribunals.

What are the Steps that should be taken into account before providing loan?1. Past debt record of the person should be

check with the help of Cibil data, if available,

2. Should initiate all such steps which can help to assess his/her creditworthiness

3. A person must not be on the list of willful defaulters list published by Reserve Bank of India

What are the kind of Charges?AssignmentThis is the mode of providing the security for advance. It is the transfer of property, right ot debts. In banking generally customer assigns, book debts, receivable from government department and insurance policies.PledgePledge is kind of charge where the physical possession is with lender for example gold loan.Hypothecation Hypothecation is the kind of charge where the item hypothecated remains with the borrower, items may vary but remains in hypothecation of bank.LienLien is the kind of charge which provides lender the right to retain possession of the goods or securities owned by the borrower to secure repayment of debt. MortgageA mortgage is a conveyance or contract that pledges real or personal property as security for the performance of an obligation, usually the payment of a debt.

What is Demand Liabilities?Accounts like Savings, Current Deposits etc are Demand liabilities for the bank through which user can take money at any time.

What is Term Liabilities?Time liability are account like Fixed deposits etc which bank has to give only after certain period of time.

What is Mobile Banking?

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Mobile banking is a term used for the services provided by the banks for various banking transaction through mobile handsets to their customers. On December 22, 2011 Reserve Bank of India has removed the cap of Rs. 50000 per day per customer for mobile banking transactions but banks are allowed to set such limit as deem fit to them.

What is meant by insurance cover for deposits in banks?Bank deposits up to Rs. 100000 in respect of each depositor are fully protected by the Deposit Insurance and Credit Guarantee Corporation under the deposit insurance scheme. This scheme is compulsory for all bank and they cannot quit such scheme.

What are Banking Codes and Standards Board of India BCSBI?The Banking Codes and Standards Board of India is a society registered under the Societies Registration Act, 1860, established on recommendation of Tarapore committee, functions as an autonomous body, to monitor and assess the compliance with codes and minimum standards of service to individual customers to which the banks agree to.

Who is a Banking Ombudsman?The Banking Ombudsman is a senior official appointed by the Reserve Bank of India to redress customer complaints against deficiency in certain banking services. The Banking Ombudsman Scheme enables an expeditious and inexpensive route available with bank customers for resolution of complaints relating to certain services rendered by banks

The Award of Banking ombudsman is reviewed by Deputy governor in charge of Rural Planning and credit Department of RBI

What are the steps taken by RBI to tame fall in the rupee value?The RBI has taken a slew of measures to encourage exporters to bring back forex and giving freedom to banks to pay higher interest rate on NRI deposits. All such attempts should be made to reduce current account deficit, by restricting import of gold and other unessential items.

What are value added service banking provide?Corporate Salary accountTax CollectionRTGS/NEFTForex DeskBanker to Right and Public Issue

What are Depository Receipts?Depository receipts are type of transferable instruments that is traded on a local stock exchange of country but represents a security issued by foreign publicly listed company.

ADR is kind of common depository receipt which has been offering companies and investor global investment opportunities

What is meant by nomination facility for bank accounts?It is the facility provided by the bank with which an account holder can nominate his sibling, who in the event of death of an account holder shall receive the balance in account in question.

What is a ‘no frills’ account?

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No frill account is a type of bank account, with low / Zero balance requirement with extra-features removed.

BSBA – Basic Saving Bank AccountThe Reserve Bank of India has recently asked banks to drop the ‘no-frills’ tag from the basic saving accounts and It has asked banks to provide the zero balance facility in the basic banking accounts along with ATM-cum-debit cards without any extra charge. The Reserve Bank has asked banks to convert the existing ‘no-frills’ accounts into ‘Basic savings bank deposit accounts. While there will be no limit on the number of deposits that can be made in a month, basic savings bank deposit account holders will be allowed a maximum of four withdrawals in a month, including through ATMs.“This account shall not have the requirement of any minimum balance... Further, no charge will be levied for non-operation/activation of in-operative ‘Basic savings bank deposit account,’’ the RBI said.

Counterfeit NotesSir, actually all branches of Nationalized, Private sector, RRBs and Foreign Bank as well as Issue offices of RBI are competent authority to impound counterfeit bank notes, Note on detection may be stamped “Counterfeit Banknote Impounded” & acknowledgement receipt with running serial number shall be issued to tenderer, as per latest master circular of RBI notes upto 4 pieces in single transaction shall be reported in consolidated report every month while notes upto 5 pieces in single transaction, then the Notes should be forwarded to Police Authorities and FIR should be lodged for investigation. Record should be maintained by obtaining acknowledgement of notes sent to Police Authorities, and Copy of FIR should also be maintained. In no case, the counterfeit notes

should be returned to the tenderer or destroyed by the bank branches / treasuries. The definition of 'counterfeiting' in the Indian Penal Code covers currency notes issued by a foreign government authority as well.

At any volume of cash received every bank branch must not allow re-circulation of any bank note, without machine processing it. Dispensation of counterfeit notes through the ATMs would be interpreted as an attempt to circulate the counterfeit notes by the bank concerned. Detection of counterfeits in chest remittances is also liable to be construed as willful involvement of the chest branches concerned in circulating Counterfeit Notes and may attract special investigation by police authorities, and other action like suspending the operation of the chest concerned.

A “nil “report may be sent in case no counterfeit has been detected during the month.

All Counterfeit Notes received back from the police authorities/courts may be carefully preserved in the safe custody of the bank and a record thereof be maintained by the branch concerned. Forged Note Vigilance Cell of the bank shall also maintain a branch-wise consolidated record of such Counterfeit Notes. Counterfeit notes, which are the subject matter of litigation in the court of law should be preserved with the branch concerned for three years after conclusion of the court case.

How would you identify the fake note?Sir each notes have specific security sings to identify them, notes of 1000 & 500 have 11 signs, Notes of 100 & 50 have 10 signs and & note of 20 and 10 have 7 signs through which we can identify whether they are fake or genuine.

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1. See through registers – present on left side they are complimentary line on each side of note which while putting in light become figure representing amount of note.

2. Water Mark3. Security thread4. Latent Image on right side,5. Micro Lettering present between latent

image and mahatma Gandhi’s picture 6. Identification mark with intaglio print for

visually impaired (Diamond share in 1000, Round in 500 & Triangle shape in 100, Square shape in 50,)

What is ATM & What are the various things we can do with Automatic Teller Machine?Dr. C. Rangrajan recommended setting upt ATMs in India. ATM is the Automatic Teller Machine used to provide delivery channel to bank customer with which they can withdraw money without visiting bank branch. There are two types of ATMs Online and Offiline. Offline ATM is not connected to bank branch server and thus provide withdrawl utpo pre fixed limit only

Components of ATM: Video Display Monitor, Keypad, Touch Screen,

Sir ATM stands for automatics teller machine, mainly used for withdrawing cash & enquiring balance without visiting bank branch, other than that we can get our mobile number registered, pay utility bills, pay credit card bills, some ATMs also provide card to card balance transfer and transfer amount from one account to another account.

What should be done to avoid fake currency notes coming out of ATMs?

Sir I think ATMs should have inbuilt note detection machines, on detection of such note ATM must stop functioning (it will ensure that customer has changed the note) and cash loading staff whether on-site or off-site must be held responsible and somehow penalized, In this manner precautions shall increase and cases of fake not from ATM shall decrease. Another thing which can be done is providing off site staff prefilled cassettes which they will simple load in ATM, Separate branch for loading can also be maintained. Automated teller machines (ATMs) can be used to accept cash deposits once provisions to detect counterfeit notes are incorporated in them, Since such a facility is not available in the existing machines, research is under way to upgrade the ATMs, he told presspersons in response to a query on the steps being taken following Finance Minister P. Chidambaram’s call urging them to facilitate cash deposits at the ATMs. The features of the new facility include a 24/7 self-service lobby, in which apart from the ATM, various automation machines such as self-service pass-book printer, cheque deposit machine and ‘Union Reach’, the phone banking terminal providing round-the-clock services, are available.

What is charge card?In this type of card transactions of holder are accumulated over a period of time generally a month and then total amount is debited from his account. Card holder is given time of 25 to 50 days to credit his account.

What is priority sector lending?Priority Sector Lending is the important role given by the reserve bank of India to banks for providing a specified portion of the bank lending to few sectors like agriculture or SSI,

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which is basically meant for all round development of the economy.

What is Mandate?A mandate is an authority given by the account holder in favor of a third person to do certain acts on his behalf. In banking parlance a person competent to contract as per Indian contract act 1872 may authorize another person to open and operate an account on his behalf. This authority can be granted by mandate or power of attorney.

Power of AttorneyPower of Attorney is a document executed by one person (donor) in favor of another person called done to act on his behalf, as per the authority given in the document.

Garnishee OrderGarnishee Order is an order of the court obtained by a ‘judgement creditor’ attaching the funds belonging to a judgement debtor in the hands of his debtor, including bank who is called garnishee, advising not to release the money until directed by the court to do so. Order shall attach the amount mentioned in the order and if no amount is mentioned in the order all the sum owned by judgement debtor on the date and time it is served. When the garnishee order is served on the bank, if the customer is trying to with draw cash and even if account is debited but payment is not made, it shall be rejects, and amount shall be attached to garnishee order, but if the bank has the prior right to set-off or lien marked, then bank is not bound by garnishee order. Credits received after the receipt of order are not attachable.

[Order nisi is order of court to freez all transactions in a debter’s account and use the amount to pay off the judgment debt]

What is Income Tax Attachment Order?Under Income Tax Act 1961, Income Tax officer may by writing issues order to attach money held by the assesee to satisfy his tax dues who have defaulted in meeting his tax dues.

What is right to set-off?Right to set off is the right of the banker to adjust his customers due from any credit balance lying in the name of the debtor. This is statutory right and can also arise out of a agreement between the parties concerned. Set off can be exercised only on those debts which are due and recoverable on the date of exercising the right. On receipt of garnishee order, in the event of death or insanity or insolvency of cutomer, receipt of notice of assignment of customers credit balance the right becomes automatic.

What is to be included in Priority Sector Lending?Finance to agriculture and allied activitiesFinance to Self Help Groups, Joint Liability Group,Finance to Micro and Small Enterprises (Direct & Indirect Finance)Micro CreditEducational Loan (upto 10 lakh domestic, 20 lakh abroad)Housing loans up to Rs. 25 lakh to individualsLoans given for repairs to the damaged dwelling units of families up to Rs. 1 lakh in rural and semi-urban areas and up to Rs. 2 lakh in urban and metropolitan areas. Investments by banks in Inter Bank Participation Certificates (IBPCs),

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Total Priority Sector lending targets to Domestic Commercial Banks: 40% of Adjusted Net Bank CreditTotal Priority Sector lending targets to Foreign Banks: 32% of Adjusted Net Bank Credit

Foreign Banks in India for priority sector lendingIn its final guideline Reserve Bank of India said that foreign banks having 20 or more branches shall be brought on par with domestic bank for priority sector lending target in phased manner starting from April 1, 2013.

What is IBPCs?IBPC stands for Inter Bank Participation Certificate

What is RTGS?Real Time Gross Settlement - Real time gross settlement systems (RTGS) are funds transfer systems where transfer of money takes place from one bank to another on a "real time" and on "gross" basis. Flow of fund in such settlement is V shaped.

What is NEFT?NEFT stands for National Electronic Fund Transfer, this facility like RTGS with the help of IFS Code

How RTGS is different from National Electronics Funds Transfer System (NEFT)?Ans. NEFT is an electronic fund transfer system that operates on a Deferred Net Settlement (DNS) basis which settles transactions in batches.In DNS, the settlement takes place with all transactions received till the particular cut-off time. In RTGS the transactions are settled individually.

For example, currently, NEFT operates in hourly batches - there are eleven settlements from 9 am to 7 pm on week days and five settlements from 9 am to 1 pm on Saturdays. Any transaction initiated after a designated settlement time would have to wait till the next designated settlement time Contrary to this, in the RTGS transactions are processed continuously throughout the RTGS business hours.The RTGS system is primarily meant for large value transactions. The minimum amount to be remitted through RTGS is ` 2 lakh. There is no upper ceiling for RTGS transactions.

What is IFSC?IFSC stands for Indian Financial System Code, helps in RTGS and NEFT transaction through which customer of any branch of any member bank can send money to another account holder of other member bank.

What is SFMS?Structured Financial Messaging System (SFMS) is a secured messaging standard developed to serve as a platform for intra-bank and inter-bank transaction. It is an Indian standard similar to SWIFT (Society for World-wide Interbank Financial Telecommunications) which is the international messaging system used for financial messaging globally.

What is SWIFT?SWIFT stands for Society for Worldwide Interbank Financial Telecommunications, this system provides very important facilities in International Banking, like issue of documentary credit, international payments and settlements etc. SWIFT is basically a message transmission system. Used mainly for Customer transfers, Documentary credits and guarantees,

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Financial Institution Transfers, Collection and cash letters etc.

What is telegraphic transfer (TT)Telegraphic Transfer is the form of remittance advised by the telex, fax or telegram.

Safe Custody LockerCan be opened for minimum one year,Rent is payable in advance, Nomination facility is available

Regional Rural BanksWhat is the importance of the rural banking in India?Rural banking assumes the greater importance because without the upliftment of rural economy as well as rural population in India which contributes the majority of our population, our socio-economic goals shall always remain unachieved.

What is the basic objective of the regional rural banks?To fulfill demands for the institutional credit in rural areasTo make banking services available to door step of the rural massesMake available to weaker section a institutional credit Mobilize rural resources

Regional Rural BanksThe committee was Narasimham Working Group 1975. On the basis of the Narsimhan Working Group 1975’s recommendations, a Regional Rural Banks Ordinance was promulgated in September 1975, which was replaced by the Regional Rural Banks Act 1976. RRBs started their development process on 2nd

October 1975 with the formation of a single bank viz. Prathama Grameen Bank. So,

Prathama Grameen Bank is India's first Regional Rural Bank. The making of RRB started with an ordinance which later was upgraded to an act.The Regional Rural Banks Act 1976 allowed the government to set up banks from time to time wherever it considered necessary. The regional rural banks (RRBs) were owned by the central government, the state government and the sponsor bank who held shares in the ratio as follows (important) Central Government : 50% State Government : 15% Public Sector Commercial banks (Sponsor Banks): 35%

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 in India 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 Reserve Bank of India (RBI).

RRBs can identify rural centers (population up to ten thousand), semi-urban centers (population more than ten thousand but up to one lakh), urban centers (population more than one lakh but up to ten lakh) and metropolitan centers (population more than ten lakh) for opening of branches depending upon the business potential and profitability of the proposed branches.RRBs (both amalgamated and stand alone) will be allowed to open one Regional Office (RO) for every 50 branches. RRBs having up to 50 branches will be under direct control of the Head Office, without any intermediate tier. The ROs are not permitted to transact any banking business. However, RRBs are required to obtain licenses from the concerned Regional Office of RBI

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Branch Opening ProcedureRRBs should obtain prior approval of their Boards of Directors before applying for opening / merger / shifting / conversion of branches / offices etc. The proposal for opening, shifting, merger or conversion of branches is to be submitted to the respective Regional Office of NABARD in the prescribed application Form VI (Rule 12) of Banking Companies Rules, 1949 (Annex I), with an advance copy thereof to the concerned Regional Office of the Reserve Bank. The Empowered Committees for RRBs (ECs), constituted by the Reserve Bank at its Regional Offices, would deliberate and make recommendation on such applications.

No separate approval of the sponsor bank is required.

Satellite OfficesThe following guidelines may be followed by the RRBs in respect of satellite offices:a) The satellite office should be established at fixed premises in the surrounding villages and should be controlled and operated from a base branch located at central village / block headquarters.b) Each satellite office should function on a few specified days (at least twice) in a week at specified hours.c) All types of banking transactions may be conducted at the satellite office.d) The customers of the satellite office may be permitted to transact business at the base branch on non-operating days of such office.e) While separate ledgers / registers / scrolls may be maintained for each satellite office, all the transactions carried out thereat should be incorporated in the books of account of the base branch.

f) The staff attached to the base branch, preferably consisting of a member of supervisory staff, a cashier-cum-clerk and an armed guard, may be deputed to the satellite office.g) Adequate arrangements for insurance of furniture, cash-in-transit, etc. may be made.Conversion of branches into satellite offices at centers other than rural is not Permissible

Merger of Two BranchesWhere two loss making branches of any RRB are in close proximity to each other (i.e. within a distance of about 5 kms.), the RRB may consider merging the two branches with a view to rationalizing the spatial spread and reducing establishment / operating costs.

What is an extension counter of bank?An extension counter is like a bank branch but with lesser facilities. Extension counters are placed in prominent places like college. Hospital of some institution to whom bank is principle banker for providing banking facility.

Upgradation of Extension Counters into Full-fledged BranchesRRBs should approach the concerned Regional Office of RBI (RPCD) for prior approval for upgrading an extension counter into a full-fledged branch. The proposal is considered if the following conditions are fulfilled:- The extension counter has been functioning for a minimum period of five years.- The number of deposit accounts exceeded 2000 during the last one-year.- The average deposits (i.e. on a monthly basis) for the last three years are not less than Rs.2 crore.

Installation of ATMs by RRBs

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RRBs need not obtain permission of RBI for installation of ATMs at branches and extension counters for which they hold licenses issued by RBI. RRBs should, however, report to the concerned Regional Office of the Reserve Bank (RPCD) and DSIM as and when an ATM is installed at a branch or an extension counter.

RESERVE BANK OF INDIA

What is RBI Act?Passes in 1934 Reserve Bank of India Act was paased to constitute Reserve Bank of India with an aim to regulate issue of currency notes and keeping reserve with view to secure monetary stability in India. Scope of its function enlarged by the time passed.

The Reserve Bank of India was set up on the basis of the recommendations of the Hilton Young Commission. The Reserve Bank of India Act, 1934 (II of 1934) provides the statutory basis of the functioning of the Bank, which commenced operations on April 1, 1935. The Bank, which was originally set up as a shareholder's bank, was nationalized in 1949.

Scheduled Commercial Bank are those bank included in the second schedule of RBI Act 1934Banking in India is governed by Banking Regulation Act 1949 & Reserve Bank of India Act 1934

Governor of RBIDuvvuri Subbarao is the governor of Reserve Bank of India, D. Subbarao > Dr. Yaga Venugopal Reddy > Bimal Jalan > C. Rangrajan

Dr Manmohan Singh was the 15th governor of Reserve Bank of IndiaSir Orborne Smith was 1st governor of RBI

Deputy Governors of RBIShri H.R. Khan, Shri Anand Sinha, Dr. Subir Gokarn, Dr. K.C. Chakrabarty (recently reappointed)

Executive Director of Reserve Bank of IndiaV.K. Sharma, D.K. Mohanty, G. Gopalkrishnan, K. Kruppaswamy, B. Mahapatra, R. Gandhi

What are the functions of RBIRegulating the issue of currency in India;

Under section 22 of RBI Act, Reserve Bank has the monopoly of note issue in the country. It has the sole right to issue currency notes of all denominations except one-rupee notes. One-rupee notes are issued by the Ministry of Finance of the Government of India.

RBI is banker to the government, It acts as banker to government, it

collects and makes payment on behalf of the government, it makes ways and means advances to central and state government, provide development finance for various projects.

RBI is considered banker’s bankEvery Bank is under the statutory

obligation to keep a certain minimum of cash reserves with the Reserve Bank. In the event of emergency Reserve Bank acts at the lender of the last resort.Custodian to exchange reserve

The Reserve Bank is the custodian of India's foreign exchange reserves. It maintains and stabilizes the external value of the rupee. 

Developmental Role

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Performs a wide range of promotional functions to support national objectives.

Controller of creditAs the central bank of the country, the

Reserve Bank undertakes the responsibility of controlling credit in order to ensure internal price stability and promote economic growth.

Where is the note printing press?There are 4 places in India, where the bank notes are printed. They are currency note press, Nasik (MH), Bank Note Press, Dewas (MP), Bharatiya Note Mudra Nigam, Salboni (WB), and Bharatiya Note Mudra Nigam, Mysore (Karnataka)

Policy Rate of Reserve Bank of IndiaRepo Rate : 8%Reverse Repo Rate : 7%SLR : 23%CRR : 4.75%Bank Rate : 9%

Which are the subsidiaries of Reserve Bank of India,Deposit Insurance & Credit Guarantee Corporation of India, National Housing Bank & Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL).

What are the Umbrella Acts of RBIReserve Bank of India Act, 1934: governs the Reserve Bank functionsBanking Regulation Act, 1949: governs the financial sector

What is monetary policy?Monetary policy is the process by which monetary authority of a country, generally a central bank controls the supply of money in the

economy by exercising its control over interest rates in order to maintain price stability and achieve high economic growth. In India, the central monetary authority is the Reserve Bank of India (RBI). is so designed as to maintain the price stability in the economy

How the changes in monetary policies affect the nation's economy.Sir mainly there can be two types of monetary policies expansionary monetary policy and Contractionary monetary policy. Expansionary monetary policy seeks to increase the size of the money supply. Contractionary monetary policy seeks to reduce the size of the money supply. While RBI reduces various rates like CRR SLR, Bank Rate Repo rate RBI adopts expansionary policy and induce money in market which may accelerate growth but may also pose danger of high inflation & exact opposite step by RBI shall result in reduction in money supply in economy which may have moderating effect on inflation and growth also.

What is the difference between the monetary policy and fiscal policy?Monetary policy is the process by which the monetary authority of a country controls the supply of money, often targeting a rate of interest for the purpose of promoting economic growth and stabilityFiscal policy is the use of government revenue collection (taxation) and expenditure (spending) to influence the economy

What is OMO?Open market Operation refers to the purchase and sale of the Government securities by the Reserve bank of India from / to public on its account. OMO plays very important role in Economy.

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What Role is played by Open Market Operation?When RBI sells government security in the markets, the bank purchases them. When the banks purchase Government securities, they have a reduced ability to lend to the industrial houses or other commercial sectors.This reduced surplus cash, contracts the Credit supply.When RBI purchases the securities, the commercial banks find them with more surplus cash and this would create more credit in the system.

What is the ATS?The ATS is an Application Tracking System, hosted on the public website of the Reserve Bank of India (RBI), which has been developed for members of the public to submit any individual application to RBI and keep track of the status of its disposal thereafter.

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

What is Repo Rate?Wherever the commercial banks have any shortage of funds they can borrow funds from RBI and the rate at which RBI lends them is called Repo Rate. 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. Current Repo Rate is 8.00 %

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. Current Reverse Repo Rate is 7.00%

Cash Reserve Ratio (CRR): 4.75%U/S 42 of RBI Act 1934, The Cash Reserve Ratio is the amount of funds that the banks are bound to keep with Reserve bank of India, with reference to the demand and time liabilities (NDTL) to ensure the liquidity and solvency of the Banks. Please note that earlier RBI was empowered to fix RBI between 3-20% by notification. However, from 2006 onwards the RBI is empowered to fix the CRR on its discretion without any ceiling. The CRR is maintained fortnightly average basis. Please note that RRBs (Regional Rural Banks) maintain the same CRR as Scheduled Commercial Banks from 2002 onwards). When CRR is reduced, more funds are available to banks for deploying in other business as they have to keep fewer amounts with RBI. This means that the banks would have more money to play and this leads to reduction of interest rates on Loans provided by the Banks.

Statutory Liquidity Ratio (SLR): 23%Apart from the CRR, banks are required to maintain liquid assets in the form of gold, cash and approved securities. Higher liquidity ratio forces commercial banks to maintain a larger proportion of their resources in liquid form and thus reduces their capacity to grant loans and advances, thus it is an anti-inflationary impact. A higher liquidity ratio diverts the bank funds from loans and advances to investment in government and approved securities.

What is the Need of SLR?

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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.

What is base rate?Base rate is a rate below which no bank can provide loan or advance unless specific concession or instruction issued by Government of India, Base Rate is the minimum lending rate that banks can charge their customers from July 1, 2010. Prior to this all lending rates were pegged to a Bank's Prime LendingRate or PLR. The banks were charging the customers an interest rate which was either above PLR or below PLR, thus PLR serving as an anchor rate. From July 1, 2010, the Base Rate has not only replaced the PLR as a benchmark rate but has also become the new floor rate below which no bank can lend.Please note that the outstanding loans that are linked to PLR would be continuing to be linked with the PLR, but the new loans and renewed loans would be linked to the sole benchmark that is Base Rate. The existing customers have been given a choice to migrate to Base Rate.

What is Bank Rate?Bank rate, is the rate of interest which a central bank charges on the loans and advances to a commercial bank. It differs from Repo Rate as it is used for long-term while repo option is used for comparatively short time.ATM Complain Redressal?The time limit for resolution of customer complaints by the issuing banks shall stand reduced from 12 working days to 7 working days from the date of receipt of customer complaint. Accordingly, failure to recredit the customer’s account within 7 working days of

receipt of the complaint shall entail payment of compensation to the customer @ 100/- per day by the issuing bank. Any customer is entitled to receive such compensation for delay, only if a claim is lodged with the issuing bank within 30 days of the date of the transaction.

Foreclosure Charges on Home LoansTo offer customer the chances to review and change their home loans without additional costs, the Committee on Customer Service in Banks (Chairman: M. Damodaran) had observed that foreclosure charges levied by banks on prepayment of home loans .

What are the soiled NotesA ‘soiled note’ means a note which has become dirty due to normal wear and tear and also includes a two piece note pasted together wherein both the pieces presented belong to the same note and form the entire note with no essential feature missing. These notes should be accepted over bank counters in payment of Government dues and for credit to accounts of the public maintained with banks.

NON CASH TRANSACTIONS(a) Non-voucher generating transactions : (i) Issue of pass books/statement of accounts; (ii) Issue of cheque books ; (iii) Delivery of term deposit receipts/drafts; (iv) Acceptance of share application forms; (v) Acceptance of clearing cheques; (vi) Acceptance of bills for collection.

(b) Voucher generating transactions: (i) Issue of term deposit receipts; (ii) Acceptance of cheques for locker rent due; (iii) Issue of travellers cheques; (iv) Issue of gift cheques; (v) Acceptance of individual cheques for transfer credit.

Notes

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Notes which have turned extremely brittle or badly burnt, charred or inseparably stuck up together and, therefore, cannot withstand normal handling, shall not be accepted by the bank branches for exchange. Instead, the holders may be advised to tender these notes to the concerned Issue Office where they will be adjudicated under a Special Procedure.

Any note with slogans and message of a political nature written across it ceases to be a legal tender and the claim on such a note will be rejected under Rule 6(3) (iii) of Reserve Bank of India (Note Refund) Rules, 2009.

All designated bank branches are required to display at their branch premises, at a prominent place, a board indicating the availability of note exchange facility with the legend, "MUTILATED NOTES ARE ACCEPTED AND EXCHANGED HERE"

They should use note counting machines or accept coins by weight for large receipts, as hitherto to facilitate the customers.

The coins of denomination of 25 paise and below, issued from time to time, ceased to be legal tender for payments as well as account with effect from June 30, 2011

What is the remedy when a person lost his both hands and can not sign?The Supreme Court has held in AIR 1950 – Supreme Court, 265 that there must be physical contact between the person who is to sign and the signature can be by means of a mark. This mark can be placed by the person in any manner. It could be the toe impression, as suggested. It can be by means of mark which anybody can put on behalf of the person who has to sign, the mark being put by an

instrument which has had a physical contact with the person who has to sign”.

What is a Non-Banking Financial Company (NBFC)?A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956 and is engaged in the business of loans & advances, acquisition of shares/stock/bonds/debentures/securities issued by Government or local authority or other securities of like marketable nature, leasing, hire-purchase, chit business but does not include any institution whose principal business is that of agriculture activity, industrial activity, sale/purchase/construction of immovable property

NBFCs are doing functions akin to that of banks; however there are a few differences:

1. an NBFC cannot accept demand deposits;

2. an NBFC is not a part of the payment and settlement system

3. NBFC cannot issue cheques drawn on itself; and

4. Deposit insurance facility of DICGC is not available for NBFC depositors unlike in case of banks.

Do you know why recession of 2008 didn’t affect the Indian economy, what was the role of banking sector, what was the role of reserve bank of India?Sir Indian economy was not affected by the global financial crisis of 2008 like US and Europe for some difference between them, no subprime crisis here, none of the bank had credit crunch, & no mistrust between bank and customer & RBI also played very important role by cutting various policy rates like CR & SLR which infused liquifity in the market, NRE &

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FCNR deposit interest rate ceiling was raised to attract foreign savings, External Commercial Borrowing norms were also relaxed. Signs of panic withdrawals from some private sector banks in the initial weeks of the crisis were met with strong reassurances by both the Government and the RBI that our banks were sound and would be fully supported.

What is Motivation and How to motivate?Motivation is the psychological feature that prods an organism to action towards desired goals and sustains the goal directed behavior. There are various methods of motivation like incentive theory, drive reduction theory, need theories suggested by Abraham Maslow

What motivates you?Speaking honestly remuneration component, sense of responsibility & recognition & friendly boss.

Give us the situation in which you have worked in pressure and met deadline?Sir, this used to be a situation at every quarterly closing at State Bank of Patiala, because we had to bifurcate lots of amounts for making adjustment transaction for incomes pertaining to next quarters and used to work late.

What is example of you creativity?I will again go with example relating to banking, in SBP earlier they were going through number of manual registers, for obtaining various information relating to LCs, BGs, Bills. Then I created an excel sheet which if updated daily on transaction to transaction basis could provide instant information about the various positions which was very appreciated.

What was your final year project? Tell us in detail?

It was about ‘Male Branded Apparel Preference” which was aimed at studying preference of public-male about various branded apparels. Sample size 500. It was about male’s preference of branded apparel in relation their age, occupation, income.

What were the reasons for recent two day strikes in banking?1. To protest against the Banking Law

Amendment Bill which seeks to remove the voting right restriction on foreign shareholders & increase voting right of private shareholder in public sector banks.

2. To protest against outsourcing 3. Demand pension revision4. Demanding 5-day working

What may be the outcome of the banking law amendment bill?Sir I believe that banking law amendment bill which aimed at increasing presence of private sector and foreign investment may result in closure of rural branches or their conversion from rural branches to USBs.

What is the current scenario in the India economy?In recent time Indian economy is witnessing slowdown sir, In the last quarter of the 2011-12 Indian economy recorded nine year low growth rate 5.6 per cent. Industrial growth (IIP) has recently been recorded negative 1.8% and it was fourth time in nine months. European crisis affected the export growth which also added to reduction in IIP. Reserve Bank with an objective of keeping inflation under control refrained from cutting any policy interest rates, which also resulted in slowdown.Slowdown in economy has impacted repayment capacity of borrowers. Gross NPAs of public sector banks increased to 3.3 per cent in 2011-

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12, from 2.3 per cent in the year-ago period. Country is also undergoing draught condition is some parts which shall also have pressure on bank loan repayment. Growth deceleration not accompanied by lower inflation, Outlook for growth lowered by almost all including RBI, Lower private consumption demand, Reserve Bank’s estimates suggest trend growth (non-inflationary) has fallen to 7.5% from 8%, Weak monsoon feeding into food inflation worries, Currency depreciation could lead to imported inflation.

What steps can be taken to reduce the inflation?Sir according to me there are two ways to attempt controlling inflation,1. Monetary measurements:- this measures includes steps taken by the central bank like, hike in bank rate, cash reserve ratio & open market operation and ultimately absorbing liquidity from the market.2. Fiscal measurements:- Fiscal measures includes various taxation policy, government can also take some protectionist steps like banning export of some items, reducing import duties on some items etc.

Suppose you are starting a business. Which kind of sources of finance you will require to start your business as you need working capital and current assets?The arrangement of working capital and current assets can be done by short-term sources. The short term sources are trade credit, short term bank finance and also public deposits.

But suppose, you are given an option to go for either trade credit or Bank loans which

option you will choose?, keep in mind that you are in a new business.Trade credit is in most cases not available to new customers as it depends upon the intangible assets of the business like goodwill and brand. Besides, trade credit is also not advisable as high price is charged in credit purchases. Sometimes, low quality or inferior good are to be accepted.

What is fiscal deficit?The difference between total revenue and total expenditure of the government is termed as fiscal deficit. It is an indication of the total borrowings needed by the government. While calculating the total revenue, borrowings are not included.

What is Primary deficit?Primary deficit is one of the parts of fiscal deficit. While fiscal deficit is the difference between total revenue and expenditure, primary deficit can be arrived by deducting interest payment from fiscal deficit. Fiscal Deficit – Interest Payment = Primary Deficit

What is revenue deficit?Revenue deficit arises when the government’s actual net receipts is lower than the projected receipts.

Which Site RBI has launched for awareness about currency notes?Reserve Bank of India has launched for fake notes www.paisaboltahai.rbi.org.in for awareness about fake notes with tag line “Pehchano paise ki boli, kyunki paisa bolta he”

Who is the general secretary of All India Bank Employee’s Association – AIBEA?Mr. C. H. Venkatachalam

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Who is the secretary of AIBEA?Mr. Vishwas Utagi

What is the difference between FII & FDI?FII invests mainly in the financial market of India majorly in secondary market, whil FDI is investment in physical assets or capital in India. For example if and institution setup outside India invest in shares of Indian company it is called FII but If some institution setup there setups plants in India then it will be called FDI.

Do you know what is MAT?Sir MAT stands for minimum alternate tax, introduces by the Section 115JB, Finance Act 2000, some companies were taking undue advantage of provisions of income tax act, they had book profit but were not paying any tax, After MAT if a company’s taxable income is less than a certain percentage of the booked profit, then by default that much of book profit shall be considered taxable and tax has to be paid on that.

What is Dumping?Act of dumping means charging a lower price for goods in the foreign market than that is charged in the domestic market. Under WTO agreement, dumping is condemned but not banned if it causes material injusry to a domestic industry of the importing country.

Dumping DutyA penalty imposed on suspiciously low-priced imports, to increase their price in the importing country and so protect local industry from unfair competition.

What is Limited Liability Partnership?A limited liability partnership (LLP) is a partnership in which some or all partners

(depending on the jurisdiction) have limited liability. It therefore exhibits elements of partnerships and corporations. In LLP, one partner is not responsible or liable for another partner's misconduct or negligence. This is an important difference from that of an unlimited partnership.

What is Balance Sheet?Sir, balance sheet is the summary of all financial balances of a business as of specific date, usually end of year or quarter.

Balance Sheet of banking company has to be prepared according to Form A of Banking Regulation Act 1949 & Profit and loss statement shall be prepared as per Form B of BR Act.

Capital and Liabilities

Assets

Capital1. Cash & Balance with RBI

Reserve & Surplus2. Balance with other Banks & Call money & Money at Short notice

Deposits 3. Loans & Advances

Borrowings 4. Investment

Other Liabilities & Provision

5. Fixed assets and Other assets

What is P& L statement?A financial statement that summarizes the revenues, costs and expenses incurred during a specific period of time - usually a fiscal quarter or year.

What JAIIB Stands for? It stands for Junior Associate of Indian Institute of Banker (Former name of IIBF)

What CAIIB stands for?

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It stands for Certified Associate of Indian Institute of Banker (Former name of IIBF)

Who is the CEO of IIBF? MR R. Bhaskaran if the CEO of IIBF

Who is the finance Secretary of India?Mr Sunil Mitra is the finance Secretary of India

What is SIP?Systematic Investment Plan is a way of investing regularly in mutual fund schemes. Through this, you can invest a fixed amount monthly or quarterly for a pre-determined period in a fund. SIPs are highly recommended as they inculcate a habit of disciplined and regular investing. If you choose the auto debit option, the process is completely hassle-free.

Who is the chairman for State Bank of India - Mr. Pratip Chaudhary (One of Director of SBS)

What is CERSAI?Central Electronic Registry of Securitization, Asset Reconstruction and Security Interest of India, or CERSAI was promoted by the central government to prevent frauds involving multiple lending by different banks on the same immovable property. It became operational on March 31, 2011.

Do you know what is EASIEST ?Electronic Accounting System in Excise and Service Tax

What are the various methods of settlement of international trade?

1. Advance Payment2. Documentary bill collection3. Documentary Credit 4. Export Consignment5. Open Account trade

What is mid corporate branch? Why the limit of Rs. 5 crores fixed for Mid corporate branch.Under Wholesale Banking the corporate customers are identified as Large and Mid corporates. Companies having annual sales turnover of over Rs. 500 crore are classified as Large Corporate and those having annual sales turnover between Rs 100 crore to 500 crore are classified as Mid Corporate.When Financial Year of the Reserve Bank of India ends?Financial year of the reserve bank of India runs from 1st July to 30th June How many office RBI does have?Reserve Bank of India does have 19 regional offices and 9 sub-offices

Which event has taken place in astronomy recently?Curiosity Rover meant to study mars is about to land on the mars.

Which Bank recently cut their home loan rate?Sir, State Bank of India has recently reduced their home loan rate from 10.50 % to 10.25% for loans upto Rs. 30.00 lakhs. State Bank of India has also recently booked profit of Rs. 3752 crores for first quarter increased by 137%

What is the amount granted by Union Government to Gujarat fro drinking water crisis?The Union government on Friday granted Gujarat Rs.425 crore for rural drinking water supply and agreed to consider the State’s demand for an assistance of Rs.14,673 crore to meet the acute drought conditions.

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Which of the minister of the Gujarat was recently in news for Scam of Rs. 400 croresGovernor Kamla Beniwal’s sanction against the Minister of State for Fisheries Purshottam Solanki. A case under the Prevention of Corruption Act is expected to be filed against Mr. Solanki soon for allegedly causing a loss of Rs. 400 crore to the State Exchequer while awarding fishing contracts without inviting tenders

Do you know what is the difference between Lok Sabha and Rajya SabhaLok Sabha is called lower chamber, while Rajya Sabha is called upper chamber though more power rests with Lok Sabha.Lok sabha can have a maximum of 552 members. On the other hand, Rajya Sabha have 250 members out of which 12 members have been nominated by the President from amongst the persons having special knowledge in art, science, literature etc.The members of the Lok Sabha are elected on the basis of Universal Adult Franchise whereas the members of the Rajya Sabha are elected by the Legislative assembly of each state through proportional representation.Lok Sabha is dissolved after every five years or earlier by the president. On the other hand, Rajya Sabha is a permanent body which is not subject to dissolution. One-third of its members retire after every second yearWhat is SEZ?SEZ stands for Special Economic Zone, A SEZ unit which has been set up for carrying on manufacturing, trading or service activity. There are some advantaged like 15 year corporate tax holiday on export profit – 100% for initial 5 years, 50% for the next 5 years No licence required for import made under SEZ units,

Duty free import or domestic procurement of goods for setting up of the SEZ units, Goods imported/procured locally are duty free and could be utilized over the approval period of 5 years, Exemption from customs duty on import of capital goods, raw materials, consumables, spares, etc.,

Ways & Means advancesWays and means advances (WMA) is a mechanism used by Reserve Bank of India (RBI) under its credit policy by which provides to the States a banking facility to help them cope up with their temporary mismatches in the cash flow of their receipts and payments. This is guided under Section 17(5) of RBI Act, 1934 , and is repayable in each case not later than three months from the date of making that advance.

Bank and Branches in India There are 26 nationalized bank & 15 Old Private Sector Banks in India after the merger of Bank of Rajasthan with ICICI bank number reduced to 14. There are 7 New Private Sector Bank.

Current Number of Foreign BanksAs of end of 2009, there were 32 Foreign Banks in India with 293 branches. Under the WTO agreements, the Reserve bank of India has to allow a minimum of 12 Branches of all the foreign banks to be opened in a year.

What all details you need to fill up while withdrawing cash from the bank?Account Number, Amount, Amount in words, Signature, DateHow RRBs SBI may does have?Sir, to the extent I know, SBI has sponsored 30 Regional Rural Banks in India.

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What type of companies can apply for private sector bank?Entities with 10 years of good track record are eligible, minimum capital of Rs. 500 crores, in which foreign holding should not exceed 49% for the first five years.

What do you mean by Financial Inclusion?Sir, Financial inclusion means delivering financial services to the remote, low income and disadvantaged group of society at affordable costs and to include as much population as possible in banking network.

What is meant by credit score?A credit score is a numerical expression based on a statistical analysis of a person's credit files, to represent the creditworthiness of that person. A credit score is primarily based on credit report information typically sourced from credit bureaus.

Who is the speaker of the Lok sabha?Smt Meera Kumar is the speaker of the lok sabha, What is Plastic Money?Plastic money is a term that is used hard plastic cards we use as ATM Cards, credit cards. They are so called because they are increasingly becoming an alternative of cash.

What is free look period for insurance policies?For the insurance products free look period means a period during which the policyholder can choose to cancel the policy, change to another policy or alter the features selected in a policy. As per latest information with IRDA has proposed 15 days free look period

What are Riders on an insurance policy?Sir, Riders in the insurance are just like topping on the dishes, life insurance riders helps to

more customize the insurance to suit one’s need. Like Critical Illness Rider, Accidental Death Rider, to name some of them.

What is a Beggar thy neighbor policy?For a country to use a policy for its own benefit that harms other countries.

What is a Barter economy?An economic model of trade in which goods are exchanged for goods without the existence of money.

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.

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.

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 is indirect taxes.

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.

What is a Black Market?

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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.

What is money laundering?The process of conversion of money obtained through illegal or criminal activity or by helping someone in such activity is called money laundering. Basically assets which does not have its origin in legal & bonafide activity. The offence of money laundering has been defined under section 3 of the Prevention of Money Laundering Act 2002.

Obligations under the PMLA Act 2002Under Section 12 of PMLA 2002, all cash transaction of the value of more than Rs. 10 lackh or its equivalent in foreing currency, or all searies of transaction connected to each other amounting to Rs. 10 lakh and more or its equivalent has to be reported to Director, Financial Interligence Unit.

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. 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.

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.

What is subprime crisis?

The term “subprime” refers to the credit status of the borrower (being less than ideal), not the interest rate on the loan itself. “sub prime” is any loan that does not meet “prime” guidelines. These loans are given to people who have inability to repay the loan and they don’t have stable income.

How bank fails?A bank failure occurs when a bank is unable to meet its obligations to its depositors or other creditors because it has become insolvent or too illiquid to meet its liabilities.

What is the concept of sustainable development?Sustainable development (SD) is a pattern of economic growth which aimed at preserving ability of resources to met human need not only for present generation but also for generations to come.

What is inflation?In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects erosion in the purchasing power of money.

What is Deflation In economics, deflation is a decrease in the general price level of goods and services.[1] Deflation occurs when the inflation rate falls below 0% (a negative inflation rate). This should not be confused with disinflation, a slow-down in the inflation rate (i.e. when inflation declines to lower levels).[2]Inflation reduces the real value of money over time; conversely, deflation increases the real value of money – the currency of a national or regional economy.

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What is stagflation?In economics, stagflation is a situation in which the inflation rate is high, the economic growth rate slows down, and unemployment remains steadily high. It raises a dilemma for economic policy since actions designed to lower inflation may exacerbate unemployment, and vice versa.

What is OLTAS?OLTAS stands for Online Tax Accounting System. OLTAS was introduced in April, 2004 for collection, accounting and reporting of the receipts and payments of Direct Taxes on-line through a network of bank branches. The tax payers’ data flow from banks directly to Tax Information Network (TIN) maintained by National Securities Depository Ltd.

What is the Asian Clearing Union (ACU)?The Asian Clearing Union (ACU) was established with its head quarters at Tehran, Iran, on December 9, 1974 at the initiative of the United Nations Economic and Social Commission for Asia and Pacific (ESCAP), for promoting regional co-operation. The main objective of the clearing union is to facilitate payments among member countries for eligible transactions on a multilateral basis. The Central Banks and the Monetary Authorities of Bangladesh, Bhutan, India, Iran, Maldives, Myanmar, Nepal, Pakistan and Sri Lanka are currently the members of the ACU

Gilt FundsGilt funds are mutual funds which exclusively invest in government securities. The schemes are also referred to as mutual funds dedicated exclusively to investments in government securities.

What is Basis Point?Basis is one hundredth of one percent, 1 basis point means 0.01%. Used for measuring change in interest rate/yield.

What is Balance of Payment?Balance of payments (BoP) accounts are an accounting record of all monetary transactions between a country and the rest of the world. It is the difference between all the import and export of goods and services by the country.

What are things you can seen on the cheque?Usually Space for Name to whom is should be paid, Space for signature, Name Address & branch code of issuing bank branch, Space for writing an amount, usually cheque number, MICR codr number

What is Banacassurance?Sir, Cross selling product, nowadays banks started having tie ups with insurance companies and sell insurance products apart from regular baking products.

What is GAAR?General Anti Avoidance Rule, The General Anti Avoidance Rule, or GAAR, was proposed in mid-March as part of the budget for fiscal 2013. GAAR aims to target tax evaders, partly by stopping Indian companies and investors from routing investments through Mauritius or other tax havens for the sole purpose of avoiding taxes

What is accounting?Accounting is the art of recording, classifying and summarizing, in a significant manner and in terms of money, transaction and events which are, in part at least of financial character and interpreting the result thereof.

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Purpose of AccountingSystematic recording and classification of business transactionTo ascertain the results of the operations To ascertain the financial position of the businessTo facilitates rational decision makingTo satisfy the requirement of law

How many accounting standards are there?29

What are the basic principles of Accounting?Credit what comes in, Debit what goes out,Credit the giver, Debit the receiver

Do you know what GAAP is?Generally Accepted Accounting Principles

What is Holder in due course?“Holder in due course” means any person who for consideration became the possessor of a promissory note, bill of exchange or cheque if payable to bearer, or to the payee or to indorsee thereof, if before the amount mentioned in it became payable, and without having sufficient cause to believe that any defect existed in the title of the person from whom he derived his title.”

What is Foreign Exchange Reserve?Foreign-exchange reserves in a strict sense are 'only' the foreign currency deposits and bonds held by central banks and monetary authorities. However, the term in popular usage commonly includes foreign exchange and gold, special drawing rights (SDRs), and International Monetary Fund (IMF) reserve positions.

Which is the Oldest Bank in India?

The story of banking starts from Bank of Hindusthan established in 1779 and it was first bank at Calcutta under European management. In 1786 General Bank of India was set up. Since Calcutta was the most active trading port in India, mainly due to the trade of the British Empire, it became a banking center. Three Presidency banks were set up under charters from the British East India Company- Bank of Calcutta, Bank of Bombay and the Bank of Madras. These worked as quasi central banks in India for many years. Then they were merged to became imperial bank of India which in 1955 converted to State Bank of India.

Which is the oldest public Sector Bank in India?The Allahbad Bank with its history stretching over 145 years is a oldest PSB.

Which five year plan is going on now ?Twelfth five year plan 2012 to 2017, (w.e.f. 1st

April 2012), Faster, sustainable & more inclusive growth.

What are the steps to reduce global warming?Sir I believe we should apply 3R (Reduce, Recycle & Reuse) (Reduce use of non renewable resources, recycle properly to avoid environmental hazard & reuse the already used resources like, use of remains of sugarcane after extracting its juice can be used for paper making.

Association of Mutual Fund India. AMFI is an association as a nonprofit organization. AMFI represents mutual funds in India and working for healthy growth of the Mutual Funds. AMFI conduct examinations for MF executives as part of their training activities

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The regulator for insurance business in India is IRDA. IRDA was established in 2000, IRDA’s functions : To regulate, promote and ensure orderly growth of the insurance business and reinsurance business in India. To protect the interests of policy holders

Who is obligator? Obligator is the person liable to pay to the lender.

Who is qualified Institutional Buyer?"Qualified Institutional Buyers are those institutional investors who are generally perceived to possess expertise and the financial muscle to evaluate and invest in the capital markets.

a) Public financial institution as b) Scheduled commercial banks;c) Mutual funds;d) Foreign institutional investor registered

with SEBI;e) Venture capital funds registered with

SEBI.These entities are not required to be registered with SEBI as QIBs

MICR stands for Magnetic Ink Character RecognitionIn MICR code number first 3 digits indicates District Code, second 3 digits indicates Bank code, & last three digit indicates branch code.

Each issue of 91 days T-bills is for Rs.500 Crores and auction is conducted on Weekly basis i.e. on every Wednesday. Each issue of 364 days T-bills is Rs.1000 Crores and auction is conducted on Fortnightly basis i.e. on alternate Wednesday. The payment of T-bills is made and received through Clearing Corporation of India Limited ( CCIL )

What is Money Market?Money market is the short term market, it is used to deploy surplus fund & also to raise short term finance.

What are the products of Money Market?T-bills, Commercial paper, Certificate of Deposit and Repo.

What is Certificate of Deposit?CD is a money market instrument which is issued at a discount. They issued in minimum amount is Rs. 1.00 lakh, minimum period of CD 15 days & maximum period of 1 year, It is different from Fixed Deposit as a) prepayment not allowed, b) loan is not allowed.

What is WPI?The Wholesale Price Index or WPI is the price of a representative basket of wholesale goods.

What are the problems associated with using Statements of Account instead of Passbook(a) These need to be filed regularly (b) the opening balance needs to be tallied with closing balance of last statement (c) loss of statements in postal transit is not uncommon and obtaining duplicates thereof involves expense and inconvenience (d) ATM slips during the interregnum between two statements does not provide a satisfactory solution as full record of transactions is not available and (e) there are a large number of small customers who do not have access to computers / internet, etc

What is External Commercial Borrowing?External Commercial Borrowings (ECB) refer to commercial loans in the form of bank loans, buyers’ credit, suppliers’ credit, etc. availed of

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from non-resident lenders with a minimum average maturity of 3 years.

All in cost for ECBs All-in-cost Ceilings over 6 month LIBOR*

Three years and up to five years

350 basis points

More than five years 500 basis points

Who are the eligible borrowers?Corporates, like hotel, hospital, software sectors (registered under the Companies Act, 1956) and Infrastructure Finance Companies (IFCs) except financial intermediaries, such as banks, financial institutions (FIs), Housing Finance Companies (HFCs) and Non-Banking Financial Companies (NBFCs) are eligible to raise ECB. Non-Government Organizations (NGOs) engaged in micro finance activities are eligible to avail of ECB.

Units in Special Economic Zones (SEZ) are allowed to raise ECB for their own requirement. However, they cannot transfer or on-lend ECB funds to sister concerns or any unit in the Domestic Tariff Area

Who can not raise ECB?Individuals, Trusts and Non-Profit making organizations are not eligible to raise ECB.

Who are lenders of ECB?A "foreign equity holder" to be eligible as “recognized lender” under the automatic route would require minimum holding of paid-up equity in the borrower company as set out below:

1. For ECB up to USD 5 million - minimum paid-up equity of 25 per cent held directly by the lender,

2. For ECB more than USD 5 million - minimum paid-up equity of 25 per cent held directly by the lender and ECB liability-equity ratio not exceeding 4:1

Amount of ECBsThe maximum amount of ECB which can be raised by a corporate other than those in the hotel, hospital and software sectors is USD 750 million

Corporates in the services sector viz. hotels, hospitals and software sector are allowed to avail of ECB up to USD 200 million or its equivalent in a financial year

NGOs engaged in micro finance activities and Micro Finance Institutions (MFIs) can raise ECB up to USD 10 million

For what purposes External Commercial Borrowings cannot be used?

1. For on-lending or investment in capital market or acquiring a company (or a part thereof) in India by a corporate

2. For real estate sector, 3. For working capital, general corporate

purpose and repayment of existing Rupee loans.

Borrowers are permitted to either keep ECB proceeds abroad or to remit these funds to India, pending utilization for permissible end-uses.

Why the banks were nationalized?The government adopted planned economy for social objective and commercial banks which were in private sector failed to help the government and thus, the government decided

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to nationalize 14 major commercial banks on 19th July, 1969. All commercial banks with a deposit base over Rs.50 crores were nationalized with objectives, 1. To direct the funds in the system to achieve

objective of Social Welfare2. Prior to nationalization many banks were

controlled by private business houses and corporate families and that is why it was necessary to control their monopolies

3. In a large country like India the numbers of banks existing those days were certainly inadequate. It was necessary to spread banking across the country.

4. In a country like India where we have a urban-rural divide; it was necessary for banks to go in the rural areas where the banking facilities were not available. In order to reduce this regional imbalance nationalization was justified:

5. The agriculture sector and its allied activities were the largest contributor to the national income, thus these were labeled as the priority sectors. But unfortunately they were deprived of their due share in the credit. Nationalization was urgently needed for catering funds to them.

What is BEF Statement?BEF statement is the statement furnishing details of import transaction exceeding $25000 or equivalent in repect of which inporter has defaulted in submission of appropriate document evidencing import within 6 month from date of remittance. Authorized dealers should forward to Reserve Bank a statement on half- yearly basis as at the end of June & December of every year.

Private banks are governed by Reserve Bank of India, Banking Regulation Act 1949 & Companies act 1956

Nomination in the locker is possible but a person cannot nominate more than one person for that.

Apart from Reserve Bank of India, Central Government is also conferred power by RBI Act and BR act to extend control over banks directly & indirectly

Foreign Bank having branch in India must keep Rs. 20.00 lac deposited with RBI and have to deposit 20% of the deposit disclosed in P&L with RBI. The Central Government can exempt any foreign bank from the requirements on the recommendations of RBI for a specific period if the amounts deposited already by it are considered adequate. On the cessation of business by any foreign bank for any reason, these deposits shall from part of the assets of the company on which the creditors in India shall have the first charge.

What is preference share?Preference share is the capital stock which provides a specific dividend before that is paid to common or equity stock holders. and which takes precedence over common stock in the event of a liquidation. 

Dividend declaration by banksDeclaration of dividend by banks require a minimum 9% of CAR and Net NPAs not exceeding 7%. The quantum of dividend that can be declared is based on the levels of net NPAs and in a graded level (Maximum 40%pay out ratio) and can be paid only from current year’s profits

What is Authorised share capital?

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The authorised capital of a company is the maximum amount of share capital that the company is authorised by its constitutional documents to issue (allocate) to shareholders.

A director of the banking company shall not hold the office for the continuous period of more than 8 yearsIn the absence of the chairman the Managing Director of the bank shall be entrusted to perform his duties.

Whole time director of the banking company need not hold any qualification shares

The Usurious Loans Act. 1918 prohibits lending at exorbitant rates. The law has been made to protect the weaker borrowers from the powerful moneylenders

The first major study by Cadbury Committee in 1992 led to the introduction of Corporate Governance

Banks have to file a return on their unclaimed deposit within 30 days of the end of each calendar year. All deposits not operated in 10 years. For term deposits, the period of 10 years starts from the expiry of the period of the deposit.

How selective Credit Control Helps in money supply control?Selective Credit Control seeks to influence the demand for credit by, (i). making borrowing more costly for certain purposes which are considered relatively inessential or (ii). by imposing stringent conditions on lending for such purposes. Or (iii). by giving concessions for certain desired types of activities

A bank can advance only against the shares of public limited company

Governor of RBI shall be the chairman of Board for Regulation and Supervision of Payment and Settlement Systems

Banking Ombudsman is an authority established under the Banking Ombudsman Scheme, 1995

An aggrieved client of a bank can Take up the matter with Banking Ombudsman only after referring the matter to the bank concerned in writing

A bank has refused to open the account without any valid reasons. When the matter was referred to the Bank’s Regional Office, no response received even after two months. The person can refer the matter to Banking Ombudsman

What is direct tax code?Direct tax code is the legislation that is said to replace the existing Indian Income Tax Act of 1961. By April 2013.

What is loan policy?Each bank formulates its own loan policy and sanction of any credit proposal has to be within the framework of policy. Formulation of loan policy is influenced by various factor like market conditions, policies of competitor etc.

HUFThe Hindu undivided family is governed by creature of Dayabhaga law in Bengal & erstwhile Bengal province and Mitakshara law in rest of India.

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In mortgage & hypothecation there is no transfer of interest but only an obligation to repay the debt.

Total priority sector lending target for foreign banks 32%

What is credit Default?Credit default means the inability or the unwillingness of a customer or counter party to meet commitment.

Which are stressed assets ?Stressed assets are those in which defaults has either already occurred on which are facing reasonably certain prospectus of default.

What is NIM?NIM stands for Net Interest Margin which is arrived at by dividing net interest income by average total assets.

What was 1988 BIS Accord?The 1988 BIS accord was the first attempt to set international risk based standard for capital adequacy. It was signed by member of BASEL Committee.

What is Cooke ratio?Cooke Ration is the measures of banks total credit exposure including on balance sheet and off balance sheet items.

What are India’s main problems? The 15th Indian National census was conducted in two phases, house listing and population enumeration. Populations has crossed 121.00 crores, with sex ration 940 females per every 1000 males, Literacy rate has improved to 74 % from 64.83%/Heavy population growth is accompanied by Inadequate fresh water supply, depletion of

natural resource, deforestation for habitation & most critical issue today is food security problems.

Who is the finance minister of Gujarat ?Vajubhai vala, who also occupy the Labour & Employment & Transport Ministry

What is micro, small and medium industry?Micro-enterpriseA micro-enterprise is one where the investment in plant and machinery (their original cost excluding land, building and items specified by the Ministry of Small Scale Industries in its notification) does not exceed Rs.25 lakh.Small enterpriseA small enterprise is one where the investment in plant and machinery (see above) is more than Rs.25 lakh but does not exceed Rs.5 crore.Medium enterpriseA medium enterprise is one where the investment in plant and machinery (see above) is more than Rs.5 crore but does not exceed Rs.10 crore.

What is RuPay card?The RuPay card is meant to promote a payments and settlement platform for card transactions at a low processing fee, making it viable for smaller merchant establishments to accept card payments for even low-value transactions. This is expected to provide a further fillip to card transactions in the country, thereby reducing the use of currency.

What is forex trading ?Forex Trading is trading currencies from different countries against each other. Forex is acronym of Foreign Exchange. For example, in Europe the currency in circulation is called the Eurro (EUR) and in the United States the currency in circulation is called the US Dollar

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(USD). An example of a forex trade is to buy the Euro while simultaneously selling US Dollar

What is green marketing? Green marketing is the marketing of products that are presumed to be environmentally safe. Thus green marketing incorporates a broad range of activities, including product modification, changes to the production process, packaging changes, as well as modifying advertising.

What is financial statement?A financial statement (or financial report) is a formal record of the financial activities of a business, person, or other entity. 

What is negotiable instruments ? A negotiable instrument is a document guaranteeing the payment of a specific amount of money, either on demand, or at a set time. For example, according to the Section 13 of the Negotiable Instruments Act, 1881 in India, a negotiable instrument means a promissory note, bill of exchange or cheque payable either to order or to bearer

India Test Fired ? India recently test fired Agni % missile from Wheeler Island off the orrisa’s coast which posses the nuclear capability and have a test range of 5000 km. India has always believed in the theory of the “No first use” even since ancient period. But we must always be ready because Joahn kenndy once said that “It is an unfortunate fact that peace is secure only by preparing for war”

Do you know what is RISAT –IRadar Imaging Satellite 1, or RISAT-1, is an Indian remote sensing satellite which was built and is operated by the Indian Space

Research Organisation (ISRO). The second RISAT satellite to be launched, it uses C-band Synthetic Aperture Radar for earth observation irrespective of the light and weather conditions of the area being imaged

Who won the first medal for india in olympic ? Rifle shooter Gagan Narang opened the medal count for India at the London Olympics by winning a bronze here Monday, finished third in his pet 10 metre air rifle event at the Royal Artillery Barracks.  Second Medal was silve medal won by Vijay Kumar in 25 meter rapid fire pistol event, & Saina Nehwal won Bronze in Badminton, fourth medal won by Mary Kom (Bronze) in women boxing, fifth medal (bronze) by & Sixth Medal (Silver) by Shushil Kumar in 66kg wrestling.

Why repo rate has been reduced recently from 8.5 % to 8.0%To the extend of my knowledge sir repo rate has been reduced from 8.5% to 8.00% on the ground that growth rate has fall, though high repo has contributed to moderation in inflation.

White Label ATMsAt present, only banks are permitted to set up automated teller machines (ATMs) in India. The Reserve Bank is coming up with policy on WLAs or White Lable ATMs, where it has been decided to permit non-banks to set up, own and operate ATMs to accelerate the growth and penetration of ATMs in the country. Such ATMs would provide services to customers of all banks. While such WLAs will be owned and operated by non-bank entities, cash management and customer grievance redressal will be in the domain of the sponsor banks. The draft guidelines on WLAs were placed on the Reserve Bank’s website for public comments in

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February 2012. For setting up WLAs, entities should have a minimum net worth of Rs. 100 crore as per the latest financial year’s audited balance sheet.

What is DGFT?DGFT Stands for Director General of Foreign Trade which is government organization in India which is responsible for the formulation of exim guidelines and principles for Indian import & exporters.What are the functions of DGFT?

1. Grants 10 digit export import code to India export

2. Promote trade with Neighboring countries

3. Grant permission of free export in export policy

4. Set standard input output norms which in also controlled by DGFT

5. Permits and regulates transit of goods from & to India.

SEBI : Securities & Exchange Board of India Government of India enacted SEBI Act 1992 on 4th April 1992 for establishment of Securities & Exchange board of India Function of SEBI:

1. Supervise and regulate work of intermediaries such as stock brokers, merchant bankers & custodians

2. To protect the interest of investors3. To recognize the business in stock

exchange and other securities

What is Merchant Bankers?Merchants Bankers are financial intermediary which manages and underwrites new issue, undertake syndication of credit, advise corporate clients on funding raising. They regulated by SEBI & RBI

What is lease financing?Lease financing means leasing out the capital purchase of assets to another company against monthly rents for asset’s consumption.

What is mutual funds?Mutual funds is a mechanism of pooling resource from public by issuing them units and investing fund so procured in the securities in accordance with objective listed in offer documentsOpen Ended Scheme:Scheme that is available for subscription and investment all the time on continuous basisCloses Ended Scheme:Scheme which has stipulated maturity period. Scheme is open for subscription for specific period.

LORL stands for Lander of the last resort. The banks can borrow from RBI on the basis of eligible securities or any other arrangement and at the time of need or crisis, they approach RBI for financial help. Thus the RBI is known as LORL.

Zero Coupon BonsA bond that pays no interest while the investor holds it. It is sold originally at a substantial discount from its eventual maturity value, paying the investor its full face value, when it comes due, with difference between what he paid initially and what he finally collected representing the benefit to investor. There are not intremi payment of interest in such kind of bonds.

Yield to Maturity (YTM): The rate of return anticipated on a bond if it is held until the maturity date. YTM is considering

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as long term bond yield expressed as an annual rate.

Window Dressing: An fund manipulation activity in which bank or companies engage themselves at the end of the accounting period in order to impress stock holder who will receive the report showing that funds are better managed and invested than what might have been drawn up.

What is Venture Capital ?Venture capital is the money invested with the entrepreneur usually to fund and early stage, more risky venture. Offsetting the high risk is the promise of higher return that the investor takes.

Who is underwriter & what is underwriting? One who does underwriting is called an underwriter. A financial organization that handles the sale of new securities which a company wished to sell in order to raise money. Typically the underwriters will guarantee subscription to securities say.

Treasury Bills:They are short term bearer discount security issued by government as a means of financing their cash requirements. T-Bills plays an important role in the local money market because most of the banks are required to hold them as a part of their reserve requirements.

Sensitive Index:A share price index based on 30 active scrips developed by the BSE with 1978-79 as a base year.

What is Hybrid ?

Any security which has the character of more than one type of security, including their derivatives.

NASDAQ : National Association for Security Dealer Automated Quotation. Stands for National Association for Security Dealers Automated Quotations. This is organization that does exactly what its names stand for. The system provides a computerized information network through which brokers, banks and other investment professional can obtain upto the minute price quotations on securities traded over the counter.

What is Future Contract: & what is the difference between the future contract and the forward contract. Future Contract is an agreement for the future delivery of the underlying commodity on security at a specified price at the end of the designated period of time. Unlike a future contract, forward contracts are traded over the counter and its terms are negotiated individually. There is no clearing house for the forward contract and the secondary market may be non-excitement o thin.

What is forward contract? It is a contract between the bank and its customers to sale or purchase specific amount of foreign exchange at specific rate. The essential idea of entering into a forward contract is to fix the exchange rate in advance and thereby avoid the exchange rate risk.

What is FII?It stands for Foreign Institutional Investor which is an institution established or incorporated outside Indian which proposes to make investment in India in securities.

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What is pari passu charges ?Pari Passu is a term used in banking transactions which means that the charge to be created is in continuation of an earlier charge which might be held by the same institution or by an other institution.  The use of "Pari Passu" when creating a charge means that when company Y goes into dissolution, the assets over which the charge has been created will be distributed in proportion to the creditors' respective holdings.

What is conforming bank? Confirmation means a definite undertaking of the confirming bank , in addition to that of the issuing bank, to honour or negotiate a complying presentation an a bank that adds the confirmation to the letter of credit is called conforming bank.

What is advising Bank?An advising bank (also known as a notifying bank) advises a beneficiary (exporter) that a letter of credit (L/C) opened by an issuing bank for an applicant (importer) is available. Advising Bank's responsibility is to authenticate the letter of credit issued by the issuer to avoid fraud. 

What is DTAA?In order to prevent double taxation and fiscal evasion, India and Indonesia signed double taxation avoidance agreement (DTAA).

National High Speed Rail Corporation has been setup to execute the bullet train projects in India of which Pune-Mumbai-Ahmedabad route shall connect Gujarat.

Assamese Village of Kokrajhar was in news recently why?

There was a violence between local bodo and muslim community. The violence erupted when two Muslims leaders were shot dead. After their death Muslims retaliated in rage which led to attacks and counter-attacks making it a large scale riot kind of situation. Prime Minister has announced the Rs. 300 crores compensation for victims.

Indian ExportIndia is now ahead of China in terms of exports growth rate. It registered an increase of 16.1% in 2011. The country is at the pinnacle in the list of all major trading countries in the world. As per the WTO Report 2012, India had the fastest export growth among major traders in 2011. China was at the second spot in export growth of any major economy at 9.3 %.

Gujarat Chief Minister Narendra Modi, on visit to Japan, has expressed his wish to develop Dholera SIR (Special Investment Region) as a model port city just like Kobe city in Japan.

India’s largest ever industrial solar plant in Ludhiana district of Punjab started functioning. This unit has been built to perform dual functions of producing solar power besides and providing permanent solution of disposal of large quantity of industrial waste water by evaporating it.

Former CBDT Chairman N. Rangachary lead committee constituted to review taxation of development centres and IT sector

Government of India launched an anti-ragging website ‘www.antiragging.in’ which will facilitate students of various universities, colleges and professional institutes to register online complaints against ragging or arassment and seek quicker action. The portal will be

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managed by UGC. The portal has been built by the Aman Satya Kachroo Trust in collaboration with Rajendra Kachroo, father of Aman Kachroo who lost his life to ragging at a medical college in Himachal in 2009.

INS Vikramaditya INS Vikramaditya is the Aircraft Carrier. It is the rechristened name of former Russian aircraft carrier Admiral Gorshkov, which has been procured by India.

Insurance SellingWith the aim to expand the reach of insurance in the country, the Insurance Regulatory and Development Authority (IRDA) has suggested to permit owners of kirana shops, fair price shops, medical shops, petrol pumps, individual Public Call Office (PCO) to sell micro insurance products.

The London OlympicsThe 30th London Olympics 2012 which started on Friday 27th July 2012, opened with a spectacular opening ceremony. Head of State Queen Elizabeth II declared the Games open.

WADA was in news recently for it Stands? Wada Stands for World Anti Doping Agency, which combats against the use of drugs in sports to stimulate performance

Do yo know what is Soyuz-FG?Soyuz –FG is the Russian carrier rocket set off from the Kazakhstan. The Soyuz-FG carrier rocket will put the 5 satellites

What is QFI?A QFI (Qualified Framework Investor or Qualified Foreign Investor) is a person or a trust resident in a country which is a member of the Financial Action Task Force (FATF) can invest

directly in India. They are allowed to Invest in Corporate Debt, Equity and Mutual fund only

Mullaperiyar Dam is located in the state of Kerala on the river Periyar built in 1895 by british government. Located in the Iddukki district of Kerala. Dam is 117 years old.

US President Barack Obama has appointed another Indian American to a key administration post, by announcing Ranee Ramaswamy (60), as a member of the prestigious National Council on the Arts.

Omita Paul, a long time aide of Pranab Mukherjee appointed secretary to the President

Pranab Mukherjee sworn-in as the 13th President of India. He was administered oath of office and secrecy by the Chief Justice of India Justice, SH Kapadia, in the Central Hall of Parliament.

Captain Lakshmi Sehgal (97), a great revolutionist in the Indian National Army and very close aide of Netaji Subhash Chandra died at Kanpur in Uttar Pradesh. She was born as Lakshmi Swaminathan, in Chennai.Shri Dr. Hamid Ansari has been elected as the 14th Vice president of India who is the only person after Dr. Sarvpalli Radhakrishnan to be elected as second consecutive term for Vice President

Godhra Train Burn case is dated 27th February 2002.

The Planning Commission finalized the Annual Plan of Rs 51,000 crore for Gujarat for the year 2012-13. The plan size is 34.2% higher than last year’s allocation at Rs 38,000 crore.

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The Supreme Court of India on 2 March 2012 appointed its former judge, Justice H S Bedi as the chairman of the monitoring authority. He will investigate the case of 22 alleged fake encounter killings in Gujarat between 2002 and 2006.

Nanavati Commission, which has been probing the 2002 Gujarat riots

In order to Check Cow Slaughter in State, Gujarat Assembly Passes Bill Gujarat Legislative Assembly passed the Gujarat Animal Preservation (Amendment) Bill 2011 Objective: To stop/discourage Cow Slaughter,

Gujarat’s which famous shawl got Geographical Indication(GI) tag? Kutchi shawls

Ganpat Vasava has been recenly elected Speaker of Gujarat Assembly

Narendra Modi the Gujarat Chief minister whose image would be published on the Time magazine’s March 26th 2012 issue.

The High Court of Gujarat, Ahmedabad dismisses the plea of the Gujarat Government and upholds the appointment of state Lokayukt by the Governor. Gujarat Governor Kamla Beniwal appointed Justice Mehta as the Lokayukta in August 2011, after over seven years of the position lying vacant

Indian investment in sri lanka?India will help establish a special economic zone (SEZ) to manufacture auto components in Trincomalee, in Sri Lanka Indian Commerce Minister Anand Sharma said in Colombo.

Who is the chairman of the IBA?

Mr. Alok Mishra from who is also a chairman and managing director of Bank of India is the Chairman of IBA.

Risk Index” to facilitate banks in extending loans soon: CIBILCredit Information Bureau (India) Ltd (CIBIL) is likely to bring in a “Risk Index” that will assist country’s banks in making faster decisions on extending loans to corporates and business houses. The Risk Index will be in the form of a score ranging from 300 to 900, a glance of which will provide the Bank the credit history of the respective companies.

Credit Information Bureau of India Limited (CIBIL) was promoted by State Bank of India and HDFC having 40 per cent share each. CIBIL is the repository of information, which containes the credit history of commercial and consumer borrower. CIBIL provides its members information in form of Credit Information Report

RRBs can launch branches in Tier-II cities without RBI permissionThe RBI has allowed Regional Rural Banks (RRBs) to open branches in Tier-II cities without asking for permit. As per a notification by RBI, RRBs would be allowed to launch branches in Tier-II cities with a population of 50,000 to 99,999 as per 2001 census with certain conditions. The decision has been taken to increase the reach of banking services in Tier-II cities. RRBs will also have authority to take decision on the applications of RRBs for opening, shifting, merger or conversion of branches without reference to the concerned Empowered Committees in order to speed up the process.

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SEBI gave its nod for online subscription of bonds.With an Objective to cut down the timeline for completion of the process of subscription of bonds SEBI has allowed online subscription of Bonds. In order to provide a mechanism to decrease the timelines of the issue process for public issue of debt securities, SEBI extends Application Supported by Blocked Amount (ASBA) facility to public issues. Currently ASBA is allowed only in case of Initial Public Offer (IPO) of shares.

What is ASBA?ASBA stands for Application Supported by Blocked Amounts, is a process developed by the Securities and Exchange Board of India (SEBI) for applying to IPO. In ASBA, an IPO applicant's account doesn't get debited until shares are allotted to him.

What are the four factors of production?Land, Labor and Capital are the main factors of Production

What is Back to Back Loan?Back-to-Back loan is also known as Parallel Loan or Credit Swap Loan. To understand this concept we need to imagine the following:1. An Indian Parent company having a subsidiary abroad (Suppose US)2. A Foreign (US) Parent company having a subsidiary in IndiaWe assume that the foreign parent company wants to lend USD 100 to its Indian Subsidiary for a specific period- say 3 years. At the same time, the Indian Parent company also has to lend USD 100 to its foreign subsidiary in that country for the same period of 3 years. We can say that the funds are to cross borders in this case. The Indian Parent company will need to exchange its Rupees into Dollars and send is

across US to its subsidiary. At the same time the US Parent company will have to exchange its dollars for Rupees and send it across to India to its subsidiaries. In both of these transactions, there is always an "Exchange Risk" exposure. To avoid this exposure, there can be an arrangement. In this arrangement, the Indian parent company can lend Indian Rupees 5000 to the US subsidiary located in India at current rates (we suppose Rs. 50 a dollar). Simultaneously, the US parent company will lend USD 100 to the Indian subsidiary. When the loan term expires, the repayment can be done in the same way. This arrangement is called back-to-back loan. In back-to-back loan the funds move within the country but serve the purpose of cross border loans.

How Currency is issued in India?As per the provisions of the Section 22 of the Reserve Bank of India Act 1934, Reserve Bank of India has the sole right to issue Bank notes of all denominations. Prior to this currency functions were carried out by the Controller of Currency. Reserve Bank is responsible for the design, production and overall management of the nation's currency. At present, notes in India are issued in the denomination of Rs. 5, Rs.10, Rs.20, Rs.50, Rs.100, Rs.500 and Rs.1,000. The printing of Rs.1 and Rs.2 denominations has been discontinued, though the notes in circulation are valid.

Small CoinsCoins up to 50 paisa are called "small coins" and coins of Rupee one and above are called "Rupee coins"

Please note the RBI has been authorized to issue notes of Rs. 5000 and Rs. 10000 also. In fact, RBI can issue any note of any denomination but NOT exceeding Rs. 10,000.

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Similarly, RBI can issue coins up to the denomination of Rs. 1000. This restriction is as per the provisions of Coinage Act 1906. The distribution of Coins is undertaken by RBI as an agent of the Government, (coins are minted by the Government and NOT by RBI)

Coins and notes as Legal Tenders:Please note that One Rupee Note and One Rupee coins are legal tenders for unlimited amounts. 50 Paisa coins are legal tender for any sum not above Rs. 10. The coins of smaller than 50 paisa value are legal tenders of a sum below Re.1

Star Series Notes:The Star series notes are currently issued in Rs. 10, 20, 50 and Rs. 100. Earlier were only 10, 20, 50, but now Rs. 100 since 2009 also. These notes are issued to replace the defected printed notes at the printing press. They have an additional character * and they are not in series.

What is currency Chest?Currency chests are storehouses where bank notes and rupee coins are stocked on behalf of the Reserve Bank. The currency chests have been established with State Bank of India, six associate banks, nationalized banks, private sector banks, a foreign bank, a state cooperative bank and a regional rural bank. Deposits into the currency chest are treated as reserves with the Reserve Bank and are included in the Cash Reserve Ratio.

What is the risk associated with banking?There are three kinds of Risks associated with the Banking:Credit Risk:Credit risk is risk of loss arising from a borrower who does not make payments as promised.

Market Risk:Market risk is the possible losses due to movement in the market prices. There are four standard market risk factors viz. stock prices, interest rates, foreign exchange rates, and commodity prices. ApartOperation Risk:Operational Risk refers to the risk of loss from inadequate or failed internal processes, people, systems or external events including incompetent management, improper planning etc.

What is IFRS?IFRS stands for International Financial Reporting Standard. IFRS is set of principles for accounting standards developed by the International Accounting Standards Board (IASB), an independent group of 15 experts. The current position in India is that All the BSE and NSE listed entities and companies which have a networth over Rs. 500 crore, are required to converge with IFRS from April 2011. The date for the insurance companies was extended to April 1, 2012, and the date for banks was extended to April 1, 2013.

What is ALM – Assets and Liability Management?Deals with management of the structure of balance sheet in terms of assets and liabilities in such a manner that interest gain is maximized and risk is minimized. Most of the banks have an elaborate institutional arrangement to manage the Asset liability Mismatch. They manage the above as follows:Banks usually price floating interest rates which moves in pace with market rate and Charges high rate for fixed rate. The above two generally take care of the Asset liability mismatch situation.

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What is Universal Banking?Universal Banking means that Financial Institutions (FIs) and Banks are allowed to undertake all kinds of activity of banking, financing and related businesses. So we can say that Universal bank is a Financial Supermarket which provides all financial products under one roof. Apart from savings and loans, the Universal banks provides services such as investing in securities, credit cards, project finance, remittances, payment systems, project counseling, merchant banking, forex operations, insurance and so on.

What is Narrow Banking?The Narrow Banking is very much an antonym to the Universal Banking. In Narrow Banking, the Bank places its funds under the risk free assets and the maturity of the liabilities match the assets and there is No possibility of the Asset Liability Mismatch. Narrow Banking means Narrow in the sense of engagement of funds and not in activity. Banks in India partially implement the Narrow banking. Narrow Banking, in Narrow sense helps the Banks to reduce the Non Performing Assets (NPA) as the engagement brings them some returns also. Tarapore Committee is related to Narrow Banking.

What is Kisan Credit Card?Introduced by NDA government in 1998 in Budget speech of Shri Yashwant Sinha in 1998.Aimed at providing adequate and timely finance to farmers from the banking system soi that they can purchase various agriculture inputs for cropping. Shri Yashwant Sinha in his speech declared that NABARD shall formulate the model scheme for KCC & Scheme was formulated on the recommendation of R V Gupta Committee.

What are the Benefits of KCC?Simple Loan & disbursement procedure, no need to apply for fresh loan for every crop, helps buy fertilizer at farmers convenience, Maximum credit limit based on agriculture income, Any number of withdrawals subject to credit limit, Repayment only after harvest. Limit to be fixed on the basis of operational land holding, cropping pattern and scale of finance

Insurance Under KCCPlease note that KCC holders are covered by a personal accident insurance. This cover is available when the person enters the scheme. The cover is as follows:Death: Rs. 50,000Disability: Rs. 25000Maximum Age to enter: 70 years.

What is Lead Bank & What is the Lead Bank Scheme.Lead Bank Scheme adopted in 1969 on recommendation of Gadgil committee which recommended an area approach for the appropriate credit arrangements as per the local conditions.

What is a Lead Bank?Under the Scheme, each district had been assigned to different banks (public and private) to act as a consortium leader to coordinate the efforts of banks in the district particularly in matters like branch expansion and credit planning. The range of institutional alternatives was widened in 1975 by adding Regional Rural Banks (RRBs) to the banking scene which would cater to need of deprived section of society.

REGIONAL RURAL BANK Regional Rural Banks were established under the provisions of an Ordinance promulgated on the 26th September 1975 and the RRB Act,

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1976 with an objective to ensure sufficient institutional credit for agriculture and other rural sectors. The RRBs mobilize financial resources from rural / semi-urban areas and grant loans and advances mostly to small and marginal farmers, agricultural laborers and rural artisans. The area of operation of RRBs is limited to the area as notified by GoI covering one or more districts in the State. RRBs covered 525 out of 605 districts as on 31 March 2006. After amalgamation, RRBs have become quite large covering most parts of the State in many cases.

What was Provided for RRBs in Budget 2012-13?Interest subvention scheme on short term agriculture finance continued at the Rate of 3% for those making timely payment. Target for agricultural credit raised by Rs.1,00,000 crore to Rs.5,75,000 crore in 2012-13. Kisan Credit Card (KCC) Scheme to be modified to make KCC a smart card which could be used at ATMs.

It has been decided that henceforth, Regional Rural Banks (RRBs) can also issue IBPC of a tenor of 180 days on risk sharing basis to scheduled commercial banks against their priority sector advances in excess of 60% of their outstanding advances.

What is the AIBP?AIBP Stands for Accelerated Irrigation Benefit Programme, was launched during 1996- 1997 to give loan assistance to the States to help them complete some of the incomplete major/medium irrigation projects Allocation for AIBP in 2012-13 stepped up by 13 per cent to Rs.14,242 crore.

What account for Largest import India?

Oil and Gold import accounts for largest portion of India’s Import

Change in Cheque Collection Policy The Reserve Bank of India (RBI), on Monday, asked banks to reframe their cheque collection policies (CCP) to include compensation payable for the delayed period in the case of collection of local cheques. If no rate is specified in CCP then on local cheque collection Interest at the rate of SB will be paid & In case of outstation clearing for delay rate of Fixed Deposit shall be paid,

Who manages the Public Sector banks?It comes under the Ambit of Finance Ministry’s Department of Financial Services.

Who is Financial Services Secretary?Mr. D.K. Mittal is the Financial Services Secretary.

What is GDP?The gross domestic product (GDP) is one the very important indication of country’s financial health, It represents the total rupee value of all goods and services produced over a specific time period - you can think of it as the size of the economy.  The economy of India is the eleventh largest in the world by nominal GDP and the third largest by purchasing power parity (PPP).

What is Purchasing Power Parity?Purchasing Power Parity is the concept which deals with the relative value of the currencies, this theory asks about how much money would be needed to purchase the same goods and services in two countries and uses that to calculate an implicit foreign exchange rate.

What is GNP?

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While GNP measures the output generated by a country's enterprises (whether physically located domestically or abroad) GDP measures the total output produced within a country's borders - whether produced by that country's own local firms or by foreign firms.

How Reserve Bank of India Regulates Banks in India?Indian banks no longer require a license from the Reserve bank for opening a branch at a place with population of below 50,000. RBI formulates various policies that ensures the greater and best corporate governance in branch operationWith the help of statutory pre-emption like CRR and SLR, Reserve Bank of India controls the lending capacities of the banksRBI undertakes Annual Onsite inspection of the bank to evaluate their performance on various aspects.Apart from Prudential norms like Income recognition, asset classification, capital adequacy RBI by ensuring compliance with KYC, AML & CFT guidelines manages the functions of banks for overall and healthy development.

What is OSMOS?OSMOS is the Off Site Survelliance and Monitoring System. The Reserve Bank of India requires bank in India to submit detailed ans structured information periodically under OSMOS and in such a way they ensure offsite control on functioning of the banks.

What amount of Profit RBI has transferred to Governement of India.?The Reserve Bank of India has transferred surplus profit of Rs. 160.10 billion for the years ended on 30th June 2012 against the Rs. 150.09 billion for the Year ended on 30th June 2012.

(Financial Year of the Reserve Bank of India runs from 1st July to 3oth June every year)

What is the difference in the ordinary bank and reserve bank?The main difference in its business, Reserve Bank of India does not provide any retail, wholesale or other banking facilities to general public or corporate, while Other commercial banks does so, Which means an person, whether individual or business entity cannot open account with RBI for their banking needs

Unlike other banks Financial Year of the Reserve Bank of India runs from 1st July to 3oth June every year

What is the Gold reserve held by reserve bank of india?The Reserve Bank held 557.75 tonnes of gold forming about 9.2 per cent of the total foreign exchange reserves in value terms as on March 31, 2012. Of these, 265.49 tonnes are held abroad in deposits / safe custody with the Bank of England and the Bank for International Settlements.

What was India’s foreign exchange reserve at the end of the 31.03.2012?During the half year under review, it came down to US$ 294.4 billion at the end of March 2012 after reaching a level of US$ 316.2 billion at the end of October, 2011.

Foreign Contribution Regulation Act Violation FCRA Foreign Contribution Regulation Act licenses to 4139 NGOs most of them located in Tamil Nadu, will now be prohibited from receiving contribution from foreign sources. These NGOs have lost their FCRA registration as they violated the FCRA> 19% of the total

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NGOs blocked are in TN. As per the government, NGOs in Tamil Nadu allegedly funded the protest against the Kudankulam Plant. India has 43451 registered NGOs

2G licenses For the auctioning of 122 licenses which were cancelled by the supreme court, the central government fixed the base price of Rs. 14000 crores for 5MHz of pan-India 2G spectrum in the 1800-MHz GSM. While for CDMA is Rs. 18200 crores. Government cut the price by roughly 4100 crores from 18000 crores suggested by TRAI (TRAI Chariman Rahul Khullar)

CRNThe coastal radar network is a vital constituent of the coastal security mechanism which will ensure monitoring and identification of maritime traffic.

MiningSupreme court recently ruled that private firm cannot claim mining right for mineral and state can impose ban on any private firm which shall stand unable to claim its rights on the grounds that they have been permitted earlier.

Central Vigilance Commission (CVC) on 29 March 2012 appointed Shyamala Gopinath as the Chairperson of the Advisory Board on Bank, Commercial and Financial Frauds. Gopinath, a former Reserve Bank of India Deputy Governor, will hold the position for two years, effective from 26 March 2012. The chairperson's position was vacant for nearly two months prior to her appointment. Prior to Gopinath, Janki Ballabh was the Chairman of the Advisory Board till 31 January 2012. The Board is part of the organisational set-up of the Central Bureau of Investigation (CBI), Which is

provided the required investigative and secretarial services, along with necessary funds, by the RBI. The Board is instrumental in probe cases of bank, commercial and financial frauds. In particular, they help in tendering advice in cases of any dispute or of differences of opinion while enquiring into the cases of alleged burgling. The frauds covered by CBI investigations include those in borrowal accounts in public sector banks, and financial or commercial frauds in a financial institution or public sector undertaking.

License for Telecom Companies The new policy favors a unified license regime and a uniform license fee of 8% of an operator’s adjusted gross revenue (AGR) across all telecom service areas. telcos currently pay 6-10% of their AGR as license fees.

RBI Sets up panel for deeper penetration of Rural Credit:The Reserve Bank of India setup a panel to recommend ways to strengthen the rural co-operative structure. This panel is headed by co-operative credit structure. It will focus on:

New CEA:Raghuram Rajan will take the place of Shri Kaushik Basu as the Chief Economic Advisor, selection was made by the Prime Minister of India, Mr. Rajan has been former chief Economists of International Monetary Fund.

India growth forecast slashed:Rating agency on the grounds of defecit rainfall and worsening eurozone situation CRISIL – Credit Rating Information of India Limited has slashed India’s growth forecast to 5.5% from its earlier 6.5%

What is Jet Privilege-HDFC Bank credit?

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Jet Airways tied up with the HDFC bank to launch “Jet Privilege HDFC Bank Credit”. This is a range of credit cards which will offer benefit and rewards in the form of JP Miles. The unique travel option will make air travel economical.

As per RBI’s recent statement in order to achieve 6.5% growth rate government will need to focus on manufacturing sector. The sector has a potential to create jobs for people quitting other sectors like agriculture.

RBI cuts SLR and releases Rs. 60000 croresRBI reduced Statutory Liquidity Ratio by 1% which means from 24% to 23% which is expected to provide liquidity of around Rs. 60000 crores. Aimed at ensuring that liquidity pressure do not hamper the flow of credit to productive sectors of the economy. Growth projection for current fiscal is reduced by RBI from 7.3% to 6.5%.

What is MGNREGA?The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is an Indian job guarantee scheme, enacted by legislation on August 25, 2005. The scheme provides a legal guarantee for one hundred days of employment in every financial year to adult members of any rural household willing to do public work-related unskilled manual work. In the budget of 2012-13 Rs. 33000 crores are provided for the MGNREGA

What is m-money transfer?It stands for mobile money transfer, which nothing but just another method of sending money using electronic medium like mobile or computer. In this user who intends to avail the service would get a secret code through SMS

message soon after the money is transferred a similar message would be forwarded to recipient who could then visit the nearest service enabled post office and receive the money by submitting the code. BSNL will provide technical assistance in the implementation of the service. This service will be implemented in Kerala, Bihar, Punjab & delhi circle.

Cabinet reshuffleAfter cabinet reshuffle union home minister P. Chidambaram will take over as the finance minister while home ministry will go in the hands of the Shushil Kumar Shinde & Virappa moily shall be given additional charge of the Power Ministry who currently hold office of Corporate Affairs Ministry

What is el nino?El Nino, an abnormal warming of surface ocean waters in the eastern tropical Pacific, is one part of what's called the Southern Oscillation and this appearance of the el nino this year has caused draught in the country, monsoon rains are considered deficient when they are fall below 90% of average 50 years rain.

What is NABARD?National Bank for Agriculture and Rural Development (NABARD) NABARD was set up as an apex Development Bank with aimed at providing credit flow for promotion and development of agriculture, SSI and cottage and village industries.

What are the Functions of NABARD?1. Acts as a coordinator in the operation of

rural credit institution2. Extends assistance to Government, RBI

and other institutions in matter of rural development

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3. Offers training and development for staffs of banks cooperative and organisation working for the development of the rural development

4. Acts as the regulator of Regional Rural Banks and Cooperative Banks

Gujarat International Finance Tec City (GIFT), the upcoming liberalized financial service centre in the state, was recently adjudged 'Best Industrial Development & Expansion' project by London-based magazine World Finance.

London Olympics 2012Started on 27th July 2012, It was the 30th Summer Olympics (London Olympics 2012) that concluded in London on 12 August 2012. US topped the medal tally clinching total 104 medals. · It bagged 46 Gold, 29 Silver and 29 Bronze · China took away a total of 88 medals and stood 2nd. India with a total of 6 medals (2 Silver+4Bronze) stood at 55th position. Wenlock was mascot for Olympics and Mandeville was mascot for Paralympics. 31st Summer Olympics Reo de Janeiro in Brazil, has been awarded to host 31st Summer Olympics, in 2016.

Coal ScamAs per the audit report of the Comptroller and Auditor General (CAG) of India, allocation of coal blocks without bidding has caused a huge loss of 1.86 lakh crore to the India’s exchequer. As per the report, 57 coal blocks that were allocated to private companies during 2004-2009, offered them a windfall gain of Rs 1.86 lakh crore. The Prime Minister Manmohan Singh has also been brought under examination as he was holding the charge of Coal Ministry from 2006 to 2009. The CAG report also raised grievous allegations against the PMO which

delayed the fair bidding process for coal blocks despite the clearance from Law and Justice Ministry. The Rs 1.86 lakh rupees scam has surpassed the 1.7 lakh crore 2G scam, as the biggest scam in the history of India.Comptroller and Auditor General of India: Vinod Rai

Foreign Exchange Dealers Association of India (FEDAI) was set up in 1958 as an Association of banks dealing in foreign exchange in India as a self regulatory body and is incorporated under Section 25 of The Companies Act, 1956. Its major activities include framing of rules governing the conduct of inter-bank foreign exchange business among banks vis-à-vis public and liaison with RBI for reforms and development of forex market.Presently some of the functions are as follows:

Guidelines and Rules for Forex Business.

Training of Bank Personnel in the areas of Foreign Exchange Business.

Accreditation of Forex Brokers Advising/Assisting member banks in

settling issues/matters in their dealings.

Represent member banks on Government/Reserve Bank of India/Other Bodies.

Announcement of daily and periodical rates to member banks.

FEDAI GuidelinesAD can determine its own working hours for forex transactionAll the bill purchased/negotiated/discounted shall be crystallized by converting it into rupee liability at bill selling rate on 30th day after expiry of NTP in case of demand bill OR

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on 30th days after expiry of notional due date.NTP for all demand bill is 25 days, (60 days for export to Iraq)For retirement of import bill, whether under LC or otherwise, bank’s bill selling rate on date / forward booked rate shall be appliedAll foreign currency bill under LC, if not retired on receipt shall be crystallized at TT selling rate.

Off Balance Sheet ItemsAcceptances and endorsements,Letters of guaranteeIrrevocable letters of creditBills for collectionOther Contingent Liabilities

State Bank of India (SBI), on Friday, reported a net profit of Rs.3,752 crore for the first quarter ended June 30, 2012, against Rs.1,583 crore in the year-ago period, a sharp rise of 137 per cent.USP Stands for Unique Selling Proposition

Correction in cheque is not allowed after 1st July 2010

What are self help groups?A self help group is a voluntary association of poor formed with common goal of social and economic empowerment, mainly poverty eradiation. SHGs crate habit of savings, uplift social condition of poor, utilize local financial resources.

What is Balance of Trade and Balance of PaymentBalance of trade is defined as difference between import and export of goods and services.

Balance of PaymentBalance of payment is flow of cash between country and all other foreign countries. It includes not only import and export of goods and services but also includes financial capital transfer.

Who prepares budget?Budget Division of Department of Economic Affairs, Ministry of Finance.

Who is the Chief Election Commissioner of India - Veeravalli Sundaram Sampath (V.S. Sampath)

BRA Stands for what – Banking Regulation Act 1949

IDRBT Stands for what?Institute for Development & Research in Banking Technology, established by Reserve Bank of India in March 1996

Foreign Exchange TransactionsAll current account transactions are free from restrictions except, 8 transactions prohibited by the Government of India. 11 transactions which require prior permission of the Government of India and 16 transactions on which indicative limits are fixed by the Government and release of foreign exchange beyond those limits requires permission from the Reserve Bank.

But it was said recently, only lower interest rate cannot stimulate investment?Yes sir, in its recent report Reserve Bank of India said that only lower policy interest rates shall not jump start the investment cycle because government possess limit fiscal and monetary space, and thus government is required to switch expenditure policy by cutting subsidies and using those resources to step up public capital expenditure.

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What is the difference between the 2008 & current India slowdown?Slowdown in India in 2008 was more due to global developments. Current slowdown is combination of global and domestic factors

What is capital adequacy ration?It is also called capital to risk weighted assets ratio, measurement of bank’s capacity to absorb the possible losses. Ratio of Bank’s capital to its risk

CAR = Tier 1 + Tier 2 / Risk Weighted Assets

What is Tier 1 Capital & What is Tier 2 capital?Tier 1 capital is also called the core capital, which consists primarily common equity, and disclosed reserves, may also include preferred stock also.Tier 2 capital is also called supplementary capital, which is consists of undisclosed reserves, revaluation reserves, general provision and loss reserves, etc.

What is Basel?Literally meaning Basel is a place in Switzerland. Where meeting of Basel Committee on Banking Supervision is an institution of Governors of the Central Banks of "G-10" nations and was held.

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 cases of bank failures

Basel II is advanced and more comprehensive measure and minimum standard for capital adequacy.

What is the capital requirement of Basel III?As per the recent Basel III Accord which shall be in force from the March 2013 through March 2017, banks shall have to maintain CAR at 10.5% and where banks will have to achieve CAR of 11.5% by the March 2017

What are the three pillers of the Basel IISupervisory review process, Market discipline, Minimum capital requirement.

4C of Credit:Character, Collateral, Capacity, Capital

Appraisal:A professional opinion, usually written, of the market value of a property, such as home, business or other asset whose market price is not easily determined. Usually required when a property is sold, taxed, insured or financed,

What is APR?Sir, APR stands for Annual Percentage Rate, yearly cost of a loan, including interest, insurance etc expressed as percentage.

Balloon PaymentA large, lump sum payment scheduled at the end of the series of considerably smaller periodic payments. A balloon payment may be included in the payment schedule for a loan, lease or other stream of payments.

Bye-laws

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They are the rules and regulation that governs a management of corporation.

Call money marketShort term market in which banks and dealers borrow money to satisfy their credit need. They are returnable at call.

Reserve Bank of India in July cur economic growth forecast from 7.3% to 6.5% and raise inflation forecast from 6.5% to 7%

Quarter 1 GDP growth remained around 5.5% 3 years low.

In test cricket South Africa ranked 1st and India 5th team.

Lakshya is microlight pilot less target air craft.

Vayalar Ravi became the Union Minister of Science and Technology

Nimoo Banzgo is the dam built in Jammu and Kashmir on Sidhu river.