Study Material for Promotion Process of Officers- 2016 - SBOA · 2016. 2. 19. · Banks are required to implement the recommendation of the Goiporia Committee that dishonoured instruments

Study Material for

Promotion Process of

Officers- 2016 *************************************

Compiled by

Santosh D. Bagale. Chief Manager, Syndicate Bank, Talegaon Dabhade (BIC 5323).

ZONAL COUNCIL MEMBER, SYNDICATE BANK OFFICERS

ASSOCIATION MUMBAI

Mobile No.- 9969573721.

e-mail – [email protected]

( For Private Circulation only )

(Information, Data collected from various Books, Magazines, News papers, Reading Material & Websites)

Recent GoI Initiatives and RBI Guidelines-

IRAC Norms- If any credit facility availed of by the issuer is classified as NPA in the books of

the FI, investment in any of the securities, including preference shares issued by the same issuer

would also be treated as NPI and vice versa. However, if only the preference shares are

classified as NPI, the investment in any of the other performing securities issued by the same

issuer may not be classified as NPI and any performing credit facilities granted to that borrower

need not be treated as NPA.

The preference share are subordinate to bank loans and therefore it is possible that the

borrowing company is generating enough surplus to service the bank loan, but not to pay

dividend on the preference shares. In addition, the non-payment of dividend on preference shares

does not expose the borrowing entity to the risk of initiation of bankruptcy proceedings by the

holders of the preference shares. Therefore, it is not necessary to downgrade loans in a situation

where the investments in the preference shares had become non-performing investments.

However, the converse is not true. If a loan becomes non-performing, the investment in

preference shares being subordinate to bank loans will have certainly turned non-performing.

The banks should inform, at least one month in advance, the existing account holders of any

change in the prescribed minimum balance and the charges that may be levied if the prescribed

minimum balance is not maintained. With effect from May 6, 2014, banks are not permitted to

levy penal charges for non-maintenance of minimum balances in any inoperative account.

Fixed/Term deposit accounts are opened with operating instructions ‘Either or Survivor’, the

signatures of both the depositors need not be obtained for payment of the amount of the deposits

on maturity. However, the signatures of both the depositors may have to be obtained, in case the

deposit is to be paid before maturity. If the operating instruction is ‘Either or Survivor’ and one

of the depositors expires before the maturity, no pre-payment of the fixed/term deposit may be

allowed without the concurrence of the legal heirs of the deceased joint holder. This, however,

would not stand in the way of making payment to the survivor on maturity.

In case the mandate is ‘Former or Survivor’, the ‘Former’ alone can operate/withdraw the

matured amount of the fixed/term deposit, when both the depositors are alive. However, the

signature of both the depositors may have to be obtained, in case the deposit is to be paid before

maturity. If the former expires before the maturity of the fixed/term deposit, the ‘Survivor’ can

withdraw the deposit on maturity. Premature withdrawal would however require the consent of

both the parties, when both of them are alive, and that of the surviving depositor and the legal

heirs of the deceased in case of death of one of the depositors.

Banks should ensure that any remittance of funds by way of demand drafts/mail transfers /

telegraphic transfers or any other mode and issue of travellers cheques for value of Rs.50,000 /-

and above is effected only by debit to the customer’s account or against cheques or other

instruments tendered by the purchaser and not against cash payment .

Banks should ensure that demand drafts of Rs.20,000/- and above are issued invariably with

account payee crossing.

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Duplicate draft, in lieu of lost draft, up to and including Rs.5,000/- may be issued to the

purchaser on the basis of adequate indemnity and without insistence on seeking non payment

advice from drawee office irrespective of the legal position obtaining in this regard. Banks

should issue duplicate Demand Draft to the customer within a fortnight from the receipt of such

request.

The transaction limit of Rs.50,000/- per customer per day has been done away with for mobile

banking transactions. However, banks may place per transaction limits based on their own risk

perception with the approval of its Board.

Banks are required to implement the recommendation of the Goiporia Committee that

dishonoured instruments are returned / dispatched to the customer promptly without delay, in any

case within 24 hours.

Banks should settle the claims in respect of deceased depositors and release payments to

survivor(s) / nominee(s) within a period not exceeding 15 days from the date of receipt of the

claim subject to the production of proof of death of the depositor and suitable identification of

the claim(s), to the bank's satisfaction.

With a view to encourage availability of affordable housing to economically weaker sections

(EWS) and low income groups (LIG) borrowers, the Reserve Bank issued instructions on March

5, 2015 that in cases where the cost of the house/dwelling unit does not exceed Rs.10 lakh,

banks may add stamp duty, registration and other documentation charges to the cost of the house/

dwelling unit for the purpose of calculating Loan to Value (LTV) ratio.

The Reserve Bank advised authorised dealers category-I (AD Category- I) banks that with effect

from on April 8, 2015, foreign direct investment (FDI) in insurance sector shall be permitted up

to 49 percent subject to the revised conditions.

The Reserve Bank on May 11, 2015 advised all public sector banks and select private sector and

foreign banks to appoint an internal ombudsman, designated as Chief Customer Service Officer

(CCSO) to further boost the quality of customer service and to ensure that there is undivided

attention to resolution of customer complaints in banks.

The Reserve Bank, on June 1, 2015, permitted all banks authorised to deal in foreign exchange/

all authorised money changers (AMCs) / full-fledged money changers (FFMCs) to allow

remittances by a resident individual up to USD 250,000 per financial year for any permitted

current or capital account transaction or a combination of both.

The Reserve Bank, on June 25, 2015, issued Rs. 100 denomination banknotes in Mahatma

Gandhi Series – 2005 with a new numbering pattern. In these notes, the numerals in both the

number panels of these banknotes are in ascending size from left to right, while the first three

alphanumeric characters (prefix) remain constant in size.

The Reserve Bank, on July 15, 2015, announced the constitution of a Committee (Chairman-

Shri Deepak Mohanty, Executive Director) with the objective of working out a medium-term

(five year) measurable action plan for financial inclusion.

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As part of the endeavour to smoothen the liquidity management operations, the Reserve Bank,

on July 27, 2015 introduced Straight Through Processing (STP) in fixed rate Liquidity

Adjustment Facility (LAF) Repo, fixed rate LAF Reverse Repo and Marginal Standing Facility

(MSF) operations.

The Central Government on August 20, 2015, declared the second and the fourth Saturday of

every month as public holiday for banks in India, whether or not such banks are included in the

Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934), with effect from

September 1, 2015. Banks will, however, function full time as on any working day on first, third

and fifth Saturday of every month.

The Reserve Bank, on August 27, 2015 enhanced the limit for cash withdrawal at Point of Sale

(POS -for debit cards and open system prepaid cards issued by banks in India) from Rs. 1000/- to

Rs. 2000/- per day in Tier III to VI centres. Customer charges, if any, levied on cash

withdrawals shall not exceed one per cent of the transaction amount at all centres irrespective of

the limit of Rs.1000 / Rs. 2000.

The Reserve Bank announced the designation of State Bank of India and ICICI Bank Ltd. as

Domestic Systemically Important Banks (D-SIBs) on August 31, 2015.

The Reserve Bank on September 24, 2015, put into circulation banknotes in the denominations

of Rs. 500 and Rs. 1000 incorporating three new/revised features - (i) ascending size of

numerals in the number panels, (ii) bleed lines, and (iii) enlarged identification mark.

The Reserve Bank, on October 22, 2015 directed all scheduled commercial banks (excluding

regional rural banks) on implementation of the Gold Monetisation Scheme, 2015 (GMS)

notified by the Central Government.

The Reserve Bank, on November 24, 2015, granted ‘in principle’ approval to the National

Payments Corporation of India (NPCI) to function as the Bharat Bill Payment Central Unit

(BBPCU) in Bharat Bill Payment System (BBPS).

The Reserve Bank on December 17, 2015, announced the Marginal Cost of Funds

Methodology for Interest Rate on Advances. All rupee loans sanctioned and credit limits

renewed with effect from April 1, 2016 will be priced with reference to the Marginal Cost of

Funds based Lending Rate (MCLR) which will be the internal benchmark for such purposes.

Master Direction of RBI - Liberalised Remittance Scheme (LRS) of USD 2,50,000 for resident

individuals.

Under the Liberalised Remittance Scheme, Authorised Dealers may freely allow remittances

by resident individuals up to USD 2,50,000 per Financial Year (April-March) for any permitted

current or capital account transaction or a combination of both. The Scheme is not available to

corporates, partnership firms, HUF, Trusts, etc.

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PMJDY Scheme Details-

Pradhan Mantri Jan-Dhan Yojana (PMJDY) is National Mission for Financial Inclusion to ensure

access to financial services, namely, Banking/ Savings & Deposit Accounts, Remittance, Credit,

Insurance, Pension in an affordable manner.

Account can be opened in any bank branch or Business Correspondent (Bank Mitr) outlet.

PMJDY accounts are being opened with Zero balance. However, if the account-holder wishes to

get cheque book, he/she will have to fulfill minimum balance criteria.

Documents required to open an account under Pradhan Mantri Jan-Dhan Yojana-

1. If Aadhaar Card/Aadhaar Number is available then no other documents is required. If

address has changed, then a self certification of current address is sufficient.

2. If Aadhaar Card is not available, then any one of the following Officially Valid

Documents (OVD) is required: Voter ID Card, Driving License, PAN Card, Passport &

NREGA Card. If these documents also contain your address, it can serve both as “Proof

of Identity and Address”. 3. If a person does not have any of the “officially valid documents” mentioned above, but it

is categorized as ‘low risk' by the banks, then he/she can open a bank account by

submitting any one of the following documents:

a. Identity Card with applicant's photograph issued by Central/State Government

Departments, Statutory/Regulatory Authorities, Public Sector Undertakings,

Scheduled Commercial Banks and Public Financial Institutions;

b. Letter issued by a gazette officer, with a duly attested photograph of the person.

Special Benefits under PMJDY Scheme-

a. Interest on deposit.

b. Accidental insurance cover of Rs.1.00 lac

c. No minimum balance required.

d. Life insurance cover of Rs.30,000/-

e. Easy Transfer of money across India

f. Beneficiaries of Government Schemes will get Direct Benefit Transfer in these accounts.

g. After satisfactory operation of the account for 6 months, an overdraft facility will be

permitted

h. Access to Pension, insurance products.

i. Accidental Insurance Cover, RuPay Debit Card must be used at least once in 45 days.

j. Overdraft facility upto Rs.5000/- is available in only one account per household,

preferably lady of the household.

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Kerala and Goa have become the first states in the country to provide one basic bank account to

every household, as per the Pradhan Mantri Jan Dhan Yojana (PMJDY). The Union Territories of

Chandigarh, Puducherry and Lakshadweep, and three districts of Gujarat - Porbandar, Mehasana and

Gandhi Nagar - have also followed suit.

Pension Fund Regulatory & Development Authority (PFRDA) is the prudential Regulator for the

National Pension System (NPS). PFRDA was established by the Government of India, Ministry

of Finance to promote old age income security.

CRA- Central Recordkeeping Agency

Stock Holding Corporation of India Limited acts as custodian of investment under NPS.

PFRDA have appointed AXIS Bank as its Trustee Bank with effect from 01st July 2013 for

functioning as NPS Trustee Bank.

Our Bank has entered into an agreement with the Pension Fund Regulatory & Development

Authority (PFRDA) to function as Aggregator. The Capital Market Service (CMS) Branch,

Mumbai, [BIC: 5076] is the Oversight Office for NPS- Lite operations of our Bank.

Swavalamban Scheme- It will be applicable to all citizens in the unorganised sector who join

the NPS administered by the Pension Fund Regulatory and Development Authority (PFRDA).

Under the scheme, Government will contribute 1000 per year to each NPS account opened after

FY 2010-11 up to FY 2016-17. The benefit will be available only to persons who join the NPS

with a minimum contribution of 1000 and maximum contribution of 12000 per annum.

PAHAL- Pratyaksh Hanstantrit Labh

DBTL- Direct Benefit Transfer-LPG

TUFS- Technology Upgradation Fund Scheme- is scheme flagship of Ministry of

Textiles(MOT) was introduced in 1999 to catalyze investment in all the sub sectors of Textile

Industry for Technology upgradation of the machinery by way of interest reimbursement. On

receipt of subsidy from MOT, Banks has to transfer the amount of subsidy into beneficiaries

account with in a period of 3 days.

D-ISB- Domestic Systemically Important Banks (D-SIBs).

The Reserve Bank advanced RTGS business hours to 8:00 hours from 9.00 hours and extended

closing time of RTGS to 20.00 hours on week days. RTGS business window remains open from

8.1 hours to 15.30 hours on Saturdays. Customer transaction cut-off time has not been changed.

The Reserve Bank released “Guidelines for Licensing of Payments Banks’’ . Guidelines aimed

at financial inclusion by providing (a) small savings accounts, and (b) payments/remittance

services to migrant labour workforce, low income households, small businesses, other

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unorganised sector entities and other users. Guidelines included parameters for eligible

promoters; scope of activities: deployment of funds: capital requirement. ‘’Guidelines for

Licensing of Small Finance Banks in the Private Sector’’ were also issued.

The Reserve Bank advised all scheduled commercial banks that with effect from November 1,

2014, (i) they can not charge any fees to their savings bank customers for five transactions

(inclusive of both financial and non-financial) in a month carried out at other bank ATMs

irrespective of the location of the ATMs; (ii)Three transactions would be free of charge if carried

out at other bank ATMs located in six metro centres, namely, Mumbai, New Delhi, Chennai,

Kolkata, Bengaluru and Hyderabad. Banks are, however, free to offer more number of free

transactions per month at other bank ATMs in any geographical location.

Rural bank branches were mandated by RBI to conduct minimum of one financial literacy camp

in a month.

The Reserve Bank advised banks that a minor of any age could open a savings/fixed/recurring

bank deposit account through his/her natural or legally appointed guardian; Minors above the age

of 10 years should be allowed to open and operate savings bank accounts independently, if they

so desire. On attaining majority, the minor should confirm the balance in his/her account and if

the account is operated by the natural guardian/legal guardian, fresh operating instructions and

specimen signature of the erstwhile minor should be obtained and kept on record for all

operational purposes.

The name of “Bharatiya Mahila Bank Limited” has been included in the Second Schedule to

the Reserve Bank of India Act, 1934.

The nomenclature of Special Ways and Means Advances granted to the State Governments was

changed as Special Drawing Facility from June 23, 2014.

The Reserve Bank issued certificates of authorisation to three non-bank entities, namely, (i) BTI

Payments Private Limited, Bangalore, (ii) Srei Infrastructure Finance Limited, Kolkata, (iii)

Riddi Siddhi Bullions Limited, Mumbai, for setting up and operating white label ATMs (WLAs)

in India . Earlier, four entities were authorised to operate as WLAs, namely, Tata

Communications Payment Solutions Limited, Mumbai; Prizm Payment Services Pvt. Ltd.,

Mumbai; Muthoot Finance Limited, Kochi and Vakrangee Limited, Mumbai.

The Reserve Bank granted “in-principle” approval to two applicants, namely, IDFC Limited and

Bandhan Financial Services Private Limited, to set up banks under the ‘Guidelines on Licensing

of New Banks in the Private Sector’.

A separate category of non-banking finance companies (NBFCs) was created, namely, Non-

Operative Financial Holding Company (NOFHC). NOFHC would be registered as a non-

deposit taking non-banking financial company (NBFC) with the Department of Non-Banking

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Supervision (DNBS) the regulatory and supervisory framework of NOFHC including prudential

norms and submission of returns would be governed by the instructions issued by Department of

Banking Operations and Development (DBOD).

The Reserve Bank advised banks to accept e-Aadhaar downloaded from the website of the

Unique Identification Authority of India (UIDAI) as an officially valid document subject to

certain conditions. Banks were also advised to note that physical Aadhaar card/letter issued by

UIDAI containing details of name, address and Aadhaar number received through post and e-

KYC process, would continue to be accepted as an ‘Officially Valid Document’.

The Government has replaced Planning Commission with a new institution named NITI Aayog

(National Institution for Transforming India). The institution will serve as ‘Think Tank’ of the

Government-a directional and policy dynamo. NITI Aayog will provide Governments at the

central and state levels with relevant strategic and technical advice across the spectrum of key

elements of policy, this includes matters of national and international import on the economic

front, dissemination of best practices from within the country as well as from other nations, the

infusion of new policy ideas and specific issue-based support.

The government has announced the launch of 'Sukanya Samriddhi Account' a new small

savings instrument for the girl child. The instrument will cater to the requirements of education

and marriage of the girl child. The account can be opened and operated by the natural or legal

guardian of a girl child till she attains the age of 10 years, after which she can herself operate it.

The deposits in the account may be made by the guardian or any other person or authority. An

account can be opened with Rs.1,000. It will require a minimum deposit of Rs.1,000 and a

maximum deposit of Rs.1.5 lakh in a financial year. Interest at the rate, to be notified by the

Government, compounded yearly shall be credited to the account till the account completes

fourteen years.

RBI has released guidelines for setting up Trade Receivables System (TReDS), which will

facilitate financing of trade receivables of Micro, Small and Medium Enterprises (MSMEs) from

large corporates and other buyers, including government departments and PSUs through multiple

financiers.

The limit of Pre-paid Payment Instruments (PPI) that can be issued has now been enhanced from

Rs.50,000 to Rs.1 lakh. The balance in the PPI should not exceed Rs.1 lakh at any point of time.

Besides, the maximum validity of gift cards has been enhanced from one year to three years.

Borrowers unwilling to repay bank loans despite the ability to do so, run the risk of being

classified as non-cooperative. Aimed at clamping down on errant borrowers, this move of RBI

will ensure that companies classified as non-co-operative will not get fresh funds. A non-co-

operative borrower is one who deliberately stonewalls legitimate efforts of lenders to recover

their dues. On an additional note, RBI has also prescribed norms for classifying / declassifying a

borrower as non-cooperative and reporting information on such defaulters to the 'Central

Repository of Information on Large Credits' (CRILC).

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RBI has issued new regulations to align NBFCs closer to bank rules. Companies with an asset

size of more than Rs.500 crore, and all the deposit taking NBFCs will have to raise minimum

Tier-1 capital to 8.5% by the end of March 2016 and 10% by the end of March 2017. RBI has

also revised the threshold to Rs.500 crore from Rs.100 crore for defining systemic significance

for NBFCs. Further, RBI has tightened the regulatory framework for NBFCs. Like banks, they

will be subject to 90-day overdue norms for identification of bad loans; will be required to make

higher provisioning for non-standard assets; and will need to have 'fit and proper criteria' for

directors.

In order to strengthen the financial sector, enhance the adoption of technology, and with an

increase in complexities of services offered by NBFCs, RBI has made it mandatory for all

NBFCs to attain a minimum Net Owned Fund (NOF) of Rs.2 crore by the end of March 2017.

RBI has eased the norms for parking ECBs. Now, such loans can be kept as Fixed Deposits

(FDs) for a period of six months for use at a later stage.

The Finance Ministry has notified a liberalised Depository Receipts Scheme, which, w.e.f. 15 th

December 2014, will help unlisted companies to mobilise money abroad and enable private

equity holders to encash their holdings.

RBI has cut the Export Credit Refinance (ECR) facility from 32% of banks' eligible export credit

to 15%, w.e.f. October 10, 2014.

Investments in trading book are held for generating profits on the short term differences in prices

/ yields. Held for trading (HFT) and Available for sale (AFS) category constitute trading book.

RBI has issued provisional license for opening new private sector bank to IDFC & Bandhan

Financial Services Ltd (MFI) out of 25 applicants ( Actual 27- Two withdrawn, 1) Tata 2)

Videocon). Mr. Chandra Shekhar Ghosh is CMD of Bandhan Finacial Sevices, Kolkata which is

largest MFI in India set up in 2001.

New Private Sector Banks- RBI Guidelines- 1) Minimum Capital required Rs.500 crores

2) Bank must maintain minimum CAR of 13% of its risk weight assets for at least 3 years.

3) New Banks must get listed with in 3 years of commencement of business.

4) At leat 25% new bank’s branches must be opened in unbanked rural centre.

5) At least 50% of Directors of non operative holding company must be independent.

6) Promoters through holding company must hold 40% share (Minimum Rs.200 crore) in

new bank for 5 years. Further, Promoters stake must be cut to 20% in 10 years and 15%

in 12 years.

7) An Individual belonging to the Promoter Group along with his relatives can hold up to

10% of the total voting equity share of holding company.

8) Aggregate NRI (FDI,NRI,FII) holding in new bank will be capped at 49% for 5 years

from the date of licensing.

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Deposit Insurance –

DICGC has to settle all the claims with in 2 months from the date of receipt of claim from the

Liquidator. Maximum Rs.1 lac deposit is covered including principal & interest through DICGC.

Deposits in different branches are totaled. All deposits that you hold in your name in the same

bank are clubbed together to apply maximum cover.

For deposit with different banks or in difference capacities, Rs.1 lac cover applied separately for

each of them. Deposit insurance is mandatory and no bank can withdraw from it. If bank fails to

pay the premium for 3 consecutive period, the DICGC can withdraw its cover.

RBI has increased investment limit in Inflation Indexed Bond for Individuals from Rs.5 lacs to

10 lacs and also for HUF, Trusts, Education & similar Institutions which are pro-profit in nature

has been increased from Rs.5 lacs to 25 lacs p. a.

FINANCIAL INCLUSION FUND – GUIDELINES--

1. Constitution of the Fund

1.1 After the completion of the initial five years, it has now been decided to merge both the

Financial Inclusion Fund & Financial Inclusion Technology Fund into a single Fund viz.

Financial Inclusion Fund (FIF).

1.2 The overall corpus of the new FIF will be Rs. 2000 crore. Contribution to FIF would be from

the “interest differential” in excess of 0.5% on RIDF and STCRC deposits on account of shortfall

in priority sector lending (as notified by RBI from time to time) kept with NABARD by banks.

1.3 All the assets and liabilities of the erstwhile FITF as well as prior commitments from FITF

for projects already sanctioned, which falls within the scope of the erstwhile funds, will be

transferred to/reimbursed from FIF.

1.4 The Fund shall be in operation for another three years or till such period as may be decided

by RBI and Government of India in consultation with other stake holders.

2. Objective of FIF-

The objectives of the FIF shall be to support “developmental and promotional activities”

including creating of FI infrastructure across the country, capacity building of stakeholders,

creation of awareness to address demand side issues, enhanced investment in Green Information

and Communication Technology (ICT) solution, research and transfer of technology, increased

technological absorption capacity of financial service providers/users with a view to securing

greater financial inclusion. The fund shall not be utilized for normal business/banking activities.

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Base Rate Base Rate = Cost of Deposits + Negative Carry on CRR and SLR +

Unallocatable Overhead Cost + Average Return on Net Worth.

CRR The minimum daily maintenance of CRR reduced from 99 per cent of

the requirement to 95 per cent effective from the fortnight beginning

September 21, 2013

CRAR- RRBs All regional rural banks (RRBs) advised to achieve and maintain a

minimum capital to risk weighted assets ratio (CRAR) of 9 per cent on

an ongoing basis with effect from March 31, 2014.

Investing in overseas The limit of an Indian company investing in overseas unincorporated

entities in the energy and natural resources sectors, under the automatic

route, reduced from 400 per cent to 100 per cent of its net worth as on

the date of the last audited balance sheet.

FDI-ARC The ceiling for foreign direct investment (FDI) in asset reconstruction

companies (ARCs) increased from 49 per cent to 74 per cent subject to

the condition that, no sponsor should hold more than 50 per cent of the

shareholding in an ARC either by way of FDI or by routing through a

foreign institutional investor (FII).

CRE-RH A separate sub-sector called ‘commercial real estate - residential

housing’ (CRE-RH) carved out from the commercial real estate (CRE)

sector. CRE-RH to consist of loans to builders/developers for residential

housing projects (except for captive consumption) under CRE segment.

The CRE-RH segment to attract a lower risk weight of 75 per cent and

lower standard asset provisioning of 0.75 per cent as against 100 per

cent and 1.00 per cent, respectively for the CRE segment

JL Banks advised that while granting advance against the security of

specially minted gold coins sold by them, they should ensure that the

weight of the coin(s) does not exceed 50 grams per customer.

Pledge Loans The limit of loans to farmers against pledge/hypothecation of

agricultural produce (including warehouse receipts) for a period not

exceeding 12 months increased from Rs.25 lakh to Rs.50 lakh both

under direct and indirect agriculture.The limit of loans to dealers/sellers

of fertilisers, pesticides, seeds, cattle feed, poultry feed, agricultural

implements and other inputs raised to Rs.5 crore per borrower from Rs.1

crore.

Bank Rate All penal interest rates on shortfall in reserve requirements, which are

specifically linked to the bank rate.

Plastic Notes Plastic notes of Rs.10 denomination proposed to be issued by RBI in

2014 in 5 cities named Kochi, Mysore, Jaipur, Shimla & Bubaneshwar.

Life span of these plastic notes will be 5 years.

Term Deposits Banks can pay term deposit interest at less than quarterly intervals.

IRF RBI has launched Interest Rate Futures contract to help investors hedge

interest rate risks while investing in Govt. Bonds.

KYC Data RBI directed to banks that they would be required to update KYC data

only one time in 2 years for high risk entities and once in 10 years for

low risk clients. Medium risk individuals & entities at least every 8

years.

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Cash Management Bills

CMBs are short term instruments that enables the Govt. to meet short

term mismatches.

Infrastructure RBI brings three more sectors under Infrastructure. Telecom & Telecommunication Services, Slurry Pipelines & Capital Dredging.

Acceptance of Cash RBI clarified that there is no restrictions regarding acceptance of cash

deposits from customers provided PAN/FORM NO.60/61 is obtained in

case of deposit above Rs.50,000/- and CTR Report filed with FIU-IND

for transactions above Rs.10 lacs.

Mobile Banking The Reserve Bank has advised that for mobile banking transactions, the

cap of Rs. 50,000 per customer per day for both funds transfer and

transactions involving purchase of goods/services has now been

removed. Banks should, however, place per transaction limits based on

their own risk perception with their Board’s approval.

NEFT - Penal Interest

for Delayed

Credit/Refunds

The Reserve Bank has reiterated that banks should strictly adhere to the

extant instructions of paying penal interest at the stipulated rate to the

customers suo-moto, without waiting for a claim from the customers

(under the extant guidelines, banks are required to pay penal interest at

the current RBI LAF Repo Rate plus two per cent for the period of

delay/till the date of refund, as the case may be, to the affected

customers.

MFIs allowed to raise ECBs

It has been decided by RBI to permit micro finance institutions (MFIs)

to raise ECB up to USD 10 million or equivalent during a financial year

for permitted end-uses, under the automatic route.

Marginal Standing

Facility (MSF)

Banks permitted to avail themselves of funds from the Reserve Bank on

overnight basis under Marginal Standing Facility (MSF), against their

excess SLR holdings.

Validity of Cheques The Reserve Bank has, in public interest and in the interest of banking

policy, reduced the period within which cheques/ drafts/pay

orders/banker’s cheques are presented for payment, from six months to

three months from the date of such instrument.

SB Interest Rate Savings bank deposit interest rate for resident Indians deregulated from

October 25, 2011. Banks given the freedom to determine their savings

bank deposit interest rate.

Individual Residents

NRI

Individual residents in India permitted to include nonresident close

relative(s) as joint holder(s) in their resident bank accounts, as also, in

exporter earners’ foreign currency (EEFC) and residents’ foreign

currency (RFC) accounts on ‘former or survivor’ basis. Non-resident

Indian close relative(s), however, would not eligible to operate the

account during the life time of the resident account holder.

• NRIs permitted to open non-resident (external) rupee account scheme/

foreign currency (non-resident) account (banks) scheme {FCNR(B)}

accounts with their resident close relative(s) on ‘former or survivor’ basis. The resident close relative would be eligible to operate the

account as power of attorney holder during the life time of the NRI/PIO

account holder.

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Resident individuals Resident individuals permitted to make a rupee gift to a NRI/PIO who is

a close relative by way of crossed cheque/electronic transfer to the non-

resident (ordinary) rupee account (NRO) of the NRI/PIO.

• A person resident in India permitted to give to a person resident

outside India, by way of gift, any security/shares/debentures of up to

USD 50,000 in value per financial year without the Reserve Bank's

approval.

The Reserve Bank reiterated its stance to banks that all demand drafts,

mail transfers, telegraphic transfers and travellers cheques for Rs,50,000

and above should be issued by banks only by debit to the purchaser's

account or against cheques or other instruments tendered by the

purchaser and not against cash payment.

NBFC All deposit taking NBFCs advised to maintain a minimum capital ratio

consisting of Tier I and Tier II capital, of not less than 15 per cent of

their aggregate risk weighted assets on balance sheet and risk adjusted

value of off-balance sheet items from March 31, 2012.

Advances against

Shares

Loans/ advances granted to individuals against the security of shares,

debentures and PSU bonds should not exceed Rs.10 lakh and Rs.20 lakh,

if the securities are held in physical form and dematerialized form

respectively. The maximum amount of finance that can be granted to an

individual for subscribing to IPOs is Rs.10 lakh. However, the bank

should not provide finance to companies for their investment in IPOs of

other companies. Banks can grant advances to employees for purchasing

shares of their own companies under Employees Stock Option Plan

(ESOP) to the extent of 90% of purchase price of shares or Rs.20 lakh

whichever is lower.

A uniform margin of 50% has been stipulated for all advances against

shares/ /financing of IPOs/issue of guarantees for capital market

operations. Within this 50 percent margin, a minimum cash margin of 25

percent should be maintained in respect of guarantees issued by banks

for capital market operations.

Proprietary Concerns The following documents included in the indicative list of required

documents for opening accounts of proprietary concerns (i) complete

income tax return (not just the acknowledgement) in the name of the

sole proprietor where the firm's income is reflected, duly

authenticated/acknowledged by the income tax authorities; and (ii)

utility bills, such as, electricity, water, and landline telephone bills in the

name of the proprietary concern.

14

Banks cannot accept interest free deposits other than in current account.

With effect from October 25, 2011, saving bank deposit interest rate stands deregulated.

Accordingly, banks are free to determine their savings bank deposit interest rate, subject to the

following two conditions:

(a) First, each bank will have to offer a uniform interest rate on savings bank deposits up to Rs.1

lakh, irrespective of the amount in the account within this limit.

(b) Second, for savings bank deposits over Rs.1 lakh, a bank may provide differential rates of

interest, if it so chooses, subject to the condition that banks will not discriminate in the matter of

interest paid on such deposits, between one deposit and another of similar amount, accepted on the

same date, at any of its offices.

Banks can pay interest on savings bank accounts at quarterly or longer rests.

Differential rates of interest can be paid on single term deposits of Rs.15 lakh and above and not on

the aggregate of individual deposits where the total exceeds Rs.15 lakh.

The profit making banks may make donations during a financial year, aggregating up to one

percent of the published profit of the bank for the previous year.

Loss making banks can make donations up to Rs.5 lakh only in a financial year.

Banks can sanction bridge loans to companies for a period not exceeding one year against the

expected equity flows/ issues as also the expected proceeds of non-convertible Debentures,

External Commercial Borrowings, Global Depository Receipts and/ or funds in the nature of

Foreign Direct Investments, provided the bank is satisfied that the borrowing company has made

firm arrangements for raising the aforesaid resources/ funds. Bridge loans extended by a bank will

be included within the ceiling of 40% of net worth prescribed for banks’ aggregate exposure to the

capital market.

With effect from April 1, 2002 banks have been charging interest on loans and advances at monthly

rests except in the case of agricultural advances (including short term loans and other allied

activities) where the existing practice continues.

Banks are not permitted to levy foreclosure charges/pre-payment penalties on home loans on

floating interest rate basis, with effect from June 5, 2012.

Non-resident Indians (NRIs) as defined in the Foreign Exchange Management (Deposit)

Regulations, 2000, as amended from time to time, now eligible to transfer funds from non-resident

ordinary (NRO) account to non-resident external (NRE) account within the overall ceiling of USD

one million per financial year subject to payment of applicable tax.

Agency banks advised to compensate an investor in relief/savings bonds, for the financial loss due

to late receipt/delayed credit of interest warrants/maturity value, at a fixed rate of 8 per cent p. a.

15

The security features in banknotes are as under: Security Thread, Intaglio Printing, See through

register, Optically Variable Ink (OVI), Fluorescence, Latent Image, Micro letterings.

Joint accounts of 2 illiterate persons can be opened. No cheque book shall be issued for accounts

of illiterate persons.

In the case of joint accounts and partnership firms, all the joint depositors and partners should join

in granting the Power of Attorney. For Joint Hindu Families, the ‘Karta’ or ‘Ejaman’ should

execute the Power of Attorney. Powers of Attorney can be granted by Limited Companies if the

Articles of Association permits it.

Trustees cannot delegate their powers by means of a Power of Attorney unless they have clear

authority under the Trust Deed to do so. If delegation of power is permitted under the Trust Deed,

all the trustees should join in executing the Power of Attorney.

A minor can be admitted to the benefits of the partnership firm with the consent of all the partners.

Applicability of simplified scoring chart for loans to Micro and Small Enterprises up to 1.00 crore

is applicable for new borrowers and renewal of the existing limit for the financial year / rating year

2014.

Large Corporate Model (RAM)-Above 5.00 crores or 3 years average annual turnover above

50.00 crores (irrespective of limit)

Real Estate Developer Model under RAM – Real Estate Activity-Irrespective of exposure.

Process note along with LRF are submitted to the reviewing authority immediately on sanction of

the facility in respect of sanctions of above 5.00 Lakhs (other than Staff Loans, JL, LD and ODD).

If the customer has suffered any financial loss incidental to return of a cheque or failure of direct

debit instructions due to insufficiency of balance on account of the unauthorized / erroneous debit,

the Bank will compensate the customer upto 10% of the amount of the returned cheque or the

amount of debit instruction, both however subject to monetary ceiling of 1 lakh (cumulative if

more than one cheque / debit instruction are involved) only if the amount of the cheque / debit

instructions would have been covered by the balance in the account but for unauthorized /

erroneous debit.

Duplicate draft will be issued within a fortnight from the receipt of such request from the

purchaser thereof. For delay beyond the above stipulated period, interest at the rate applicable

for Fixed Deposit of corresponding period will be paid as compensation to the customer for such

delay.

Bank would return to the borrowers all the securities/ documents/ title deeds to mortgaged property

within 15 days of repayment of all dues agreed to or contracted.

16

It is mandatory for bank to reimburse the customer, the amount wrongfully debited on account of

failed ATM within a maximum period of 7 working days from the receipt of the complaint. For

any failure to re-credit the customer’s account within 7 days from the date of receipt of the

complaint, bank shall pay compensation of 100/- per day to the aggrieved customer.

Pensioners should get their pension, hike in Dearness Relief/ Allowance etc., announced by Govt.

in succeeding month’s pension payment itself. If there is delay in disbursement of pension /

pension arrears aggrieved pensioners are to be compensated for the delayed period beyond the due

date, at a fixed interest rate of 8% per annum on such delays.

Any currency note with slogans and message of a political nature written across it ceases to be a

legal tender.

The currency notes, which are found to be deliberately cut, torn, altered or tampered with, if

presented for payment of exchange value should be rejected.

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.

Bank Assets purchased worth less than 5000/- need not be capitalized.

Provision for Standard Asset-

Provision for Standard Assets is computed at Corporate Office, branches need not compute or

recommend provision for Standard Assets.

Direct Advances to Agricultural and Small & Micro Enterprises (SMEs) 0.25%

Advances to Commercial Real Estate sector (CRE) 1.00%

Advances to Commercial Real Estate-Residential Housing Sector (CRE-RH) 0.75%

Restructured accounts classified as non-performing advances, when upgraded to

Standard category, in the first year from the date of upgradation.

5.00%

Housing loans at teaser rates- (To be reverted to 0.40% after 1 year from the date on which the rates are reset at

higher rates if the accounts remain ‘standard’.)

2.00%

Restructured accounts classified as standard advances in the first two years from the

date of restructuring. In cases of moratorium on payment of interest/principal after

restructuring, for the period covering moratorium and two years thereafter.

5.00%

All other loans and advances not included above. 0.40%

17

Imp. BC Circulars-2011-

Cir No. Imp. Contents

355-2011-BC Syndicate Bank has entered into strategic tie up arrangement with one among

the leading stock broking players in India M/s Asit C. Mehta Investment

Interrmediates Ltd (ACMIIL) for offering Synd e-Trade - Online Share

Trading Facility (3 in 1 Account) to SyndicateBank customers who invest or

trade in securities.

313-2011-BC The RBI, on being satisfied that in public interest and in the interest of the

Banking Policy, has decided that it is necessary to reduce the period within

which cheques/drafts/pay orders/banker’s cheques are presented for payment

from six months to three months. Accordingly, RBI has, vide their Circular

No. DBOD.AML.BC No.47/14.01.001/2011-12 dated November 4, 2011, in

exercise of the powers conferred by Section 35A of the Banking Regulation

Act, 1949, directed that with effect from 01.04.2012, Banks should not make

payment of cheques/drafts/pay orders/banker’s cheques bearing that date or

any subsequent date, if they are presented beyond the period of three months

from the date of such instrument.

147--2011-BC It has been decided to raise the minimum amount to be accepted from Rs.100/-

to Rs.1000/- under fresh VCCs as well as renewal of existing / Matured VCCs

w.e.f. 01.06.2011. SB Int rate wef 03.05.2011 is enhanced to 4% from 3.50%.

161-2011-BC Branches / offices shall continue to levy additional interest of 1% over the

applicable rate for the respective category on ad-hoc limits (other than export

finance).

271-2011-BC SYND JAI KISAN” -Quantum of Loan (Maximum 5.00 lac)

Repayment period: T h e l o a n s a n c t i o n e d u n d e r t h e s c h e m e s h a l l b e r e p a y a b l e w i t h i n maximum period of 7 years.

287-2011-BC SCHEMES FOR FINANCING MICRO AND SMALL ENTERPRISES (MSEs)- “SyndMSE”- Renewal once in two years.

Micro and Small enterprises sector will include credit to:

1. Manufacturing Enterprises :

(a) Micro (manufacturing) Enterprises:

Enterprises engaged in the manufacture/production, processing or

preservation of goods and whose investment in plant and machinery

(original cost excluding land and building) does not exceed 25 lakh,

irrespective of the location of the unit. (b) Small (manufacturing) Enterprises: Enterprises engaged in the manufacture/production, processing or

preservation of goods and whose investment in plant and machinery (original cost excluding land and building ) is more than 25 lakh but does

not exceed 5 crore, irrespective of the location of the unit.

18

Imp. BC Circulars-2012-

BC Cir No. Important contents

003/2012/BC As per RBI guidelines, no interest is payable in case of NRE Term Deposits of

less than one year. (Para 2.2A (ii) of RBI Master Circular on Domestic, NRO

and NRE Deposits - minimum tenor of NRE Deposits is one year).

Accordingly, in case of premature withdrawal / premature renewal of NRE

Term deposits, no interest is payable where the period for which the deposit

held with the Bank is less than one year.

004/2012/BC New “Savings-cum-Over Draft” facility to landless rural families to promote

Savings amongst landless villagers and to meet their genuine credit

requirements of consumption purposes on a need based basis by extending

Savings cum-OD facility.

After opening the Savings-cum-OD account, a limit of 10,000/- has to be

created for 3 years at Base Rate of the Bank.

008/2012/BC The Reserve Bank of India has set up a Working Group on Information

Security, Electronic Banking, Technology, Risk Management and Cyber

Frauds (Chairman: Shri G. Gopalakrishna, Executive Director, RBI).

009/2012/BC All sanctions of above 1.00 crore is to be vetted by Law Officer of Regional

Office in centers where Regional Office is located. In other centers, vetting has

to be done by Panel Lawyer, who should be a reasonably Senior Advocate and

not by the same panel Lawyer, who has given opinion on chain of title and

encumbrance.

011/2012/BC Additional interest of 0.50% is payable to Resident Indian Senior Citizens on

Domestic Term Deposits of less than Rs.5 crore and the maturity tenor of one

year and above only.

2 Service Enterprises (a) Micro (service) Enterprises:

Enterprises engaged in providing/rendering of services and whose investment in equipment (original cost excluding land and building and furniture, fittings and other

items not directly related to the service rendered) does not exceed 10 lakh, irrespective of

the location of the unit.

(b) Small (service) Enterprises:

Enterprises engaged in providing/rendering of services and whose

investment in equipment [original cost excluding land and building and furniture, fittings and other items not directly related to the service rendered ) is more than 10 lakh but does not exceed 2 crore,

irrespective of the location of the unit.

19

Employees / eligible Ex-employees are eligible for an additional interest of 1%

over the above rates irrespective of the amount and tenor of deposit.

Eligible ex-employees, who are Senior Citizens and are eligible for the above

additional interest are also eligible for an additional interest of 0.50% payable

to Resident Indian Senior Citizens on domestic term deposits of less than Rs.5

crore & maturity tenor of one year and above only.

012/2012/BC PAYMENT OF PENAL INTEREST FOR DELAYED CREDIT/REFUNDS OF NEFT TRANSACTIONS. Branches are required to pay penal interest at

the current RBI Repo Rate plus two percent for the period of delay / till the

date of refund as the case may be to the affected customers without waiting for

a claim from the customers.

013/2012/BC Bank has now entered into MOU with another rating agency, viz, Brickwork

Ratings India Pvt Ltd, for rating our Micro and Small Enterprises borrowers.

Brickwork Ratings India Pvt Ltd, is recognized by National Small Industries

Corporation (NSIC) besides SEBI.

018/2012/BC In case of foreign tourists, copies of passport containing identification

particulars and address may be accepted as documentary proof for both

identification as well as address. Further, a copy of the visa of non-residents,

duly stamped by Indian Immigration authorities may also be obtained and kept

on record.

019/2012/BC DRI Scheme- Limit of the loan per borrower is increased from 6500/ to 15000/- for general

purpose and from 5000/- to 20000/- for housing purpose.

Annual family income is increased from 6400/- in rural areas to 18000/- and

from Rs.

7200/- in semi-urban & urban areas to Rs.24000/- .

031/2012/BC Prepayment penalty charges will not be levied on Retail Loans (such as

SyndNivas, SyndSaral, SyndSenior, SyndVahan, SyndMSE,SyndVyapar

Improved and any other Synd Products) when they are closed other than by

way of TAKEOVER. A penalty of 2% on outstanding balance shall be levied

if these loans are taken over by other Banks/FIs.

034/2012/BC Branches are permitted to accept NRE Term Deposits up to a maximum period

of 10 years instead of existing period of 5 years w.e.f. 07.02.2012.

045/2012/BC The Financial Action Task Force (FATF) is the global standard setting body

for anti-money laundering and combating the financing of terrorism

(AML/CFT).

058/2012/BC MICRO INSURANCE- INSURANCE COVER TO ACCOUNT HOLDERS

COVERED UNDER BANK’S FINANCIAL INCLUSION PLAN-

□ Eligibility: All accounts opened under the Bank’s Financial Inclusion Plan,

20

CASA Product codes 221, 223, 224 & 225.

□ Amount of insurance Cover: 25,000/-

□ Entry Age: 18-64 years. □ Type of Cover: Life Cover (Term) covering Accidental & Natural death and

Terminal Illness benefit.

Premium Amount: Presently 32.00 p.a. including service tax, for a cover of

25,000/-

□ (Annual Premium Rate 1.16 per 1,000/- sum assured, plus service tax as

applicable on risk premium.)

075-2012-BC Need based credit against the indebtedness of the farmer from money lender

with a maximum of 1.00 lac per farmer with Nil margin.

106-2012-BC Nomination facility is available in respect of:

(i) Articles entrusted to safe custody:

The facility of nomination is available only in the case of individual depositors

and not in respect of persons jointly depositing the articles for safe custody.

(ii) Safe Deposit Lockers: (a) Individuals (including non-resident Indians) who is sole hirer of a locker.

(b) Two or more individuals (including non-resident Indians) jointly hiring a

locker.

109-2012-BC PMEGP-Locking up of margin money subsidy for three years period. No

interest to be paid by Bank on the TDR amount of Margin money subsidy and

no interest will be charged by Banks on loan to the corresponding amount of

TDR.

The first installment of bank loan should be at least equal if not more than the

TDR / Margin Money subsidy amount.

121-2012-BC Inclusion of following documents in the indicative list of required documents

for opening accounts of proprietary concern:

1) The complete Income Tax Return (not just the acknowledgement) in the

name of the sole proprietor where the firm’s income is reflected duly

authenticated / acknowledged by the Income Tax Authorities.

2) Utility bills such as electricity, water and landline telephone bills in the

name of the proprietary concern.

140-2012-BC NRI shall be eligible to transfer funds from NRO account to NRE account

within the overall ceiling of USD one million per financial year subject to

payment of tax, as applicable .

166-2012-BC In addition to the existing four approved external rating agencies, viz.,

CRISIL, ICRA, CARE and FITCH, Reserve Bank of India has now accredited

BRICKWORK Ratings India Private Limited (Brickwork) for the purpose of

risk weighting the banks’ claims for capital adequacy purposes, taking the total

number of approved rating agencies to five.

177-2012-BC It has been decided to waive the service charges on NEFT outward

transactions up to 1.00 lakh with immediate effect. Maximum Rs.25/-

exclusive of service tax.

21

178-2012-BC RBI, in order to protect the customer interest, have advised All Scheduled

Commercial Banks to display on their respective websites the names and

addresses of all those accounts inoperative/inactive/unclaimed for 10 years and

above w.e.f. 30th June 2012.

185-2012-BC Revised the rate of interest on fresh advances of 25 lakhs and above against

Term Deposits as under.

LD : 1.00% above the deposit rate.

ODD: 1.50% above the deposit rate.

The revised rates of interest as above are not applicable to the advances

against third party deposits.

The interest rate on advances of less than 25 lakhs against Term Deposits

remains unchanged, i.e, 2% above deposit rate.

189-2012-BC RBI has decided to permit Non-Bank Entities incorporated in India under

Companies Act 1956, to set up, own and operate ATMs in India. Such ATMs

will be in the nature of White Label ATMs (WLA) and would provide ATM

services to customers of all Banks based on the card issued by the banks.

Maximum Loan of 5.00 lac/ATM repayable within maximum period of 60

months with maximum moratorium of 6 months@ 25% margin.

203-2012-BC JOINT LENDING ARRANGEMENT (JLA)- In case of borrowers enjoying

aggregate credit limits below 150 crore from more than one bank, where

further enhancement would take the aggregate limits to 150 crore or more,

should be Considered jointly by the financing banks concerned and the bank,

which takes up the largest share of the limits, shall be deemed to be the leader

of the formalized JLA. The JLA will have Common Documentation and

Common Asset Classification.

206-2012-BC De-duplication of Customer IDs for identification of customers having

multiple Customer IDs.

290-2012-BC S B accounts are exempted from cash handling charges as per the existing

guidelines and cash handling charges applicable to Current/Overdraft a/c .

293-2012-BC “Shell Bank”- Banks should refuse to enter into a correspondent relationship

with a “Shell Bank” (i.e. a bank which is incorporated in a country where it

has no physical presence and is unaffiliated to any regulated financial group).

Shell Banks are not permitted to operate in India.

Suspicious Transaction Reports (STR)- (STR) should be furnished within 7

days of arriving at a conclusion that any transaction, whether cash or non-cash,

or a series of transactions integrally connected are of suspicious nature.

22

294-2012-BC “SYND NAVARATNA” SAVINGS DEPOSIT SCHEME- Resident Individuals (singly / jointly), employed permanently in Multinational

Companies/Corporations (MNC) Blue Chip Companies, reputed Private

Organizations and Government/Semi-Government Undertakings are eligible to

open this account. The savings bank account opened shall have the ZERO

BALANCE facility at any given point of time. There shall be a minimum of 25

employees per organization to be eligible for drawing their salary through

Synd Navaratna savings bank account. Regional Managers may use their

discretion and relax the number of employees to 10 in deserving cases.

Free Funds transfer facility through RTGS/NEFT up to Rs.1.00 lakh.

At par Demand drafts/pay orders (six instances in a year up to ceiling of salary

credited per instance). Temporary overdraft facility for a period of 15 days to meet any urgent

requirements subject to payment of interest. Amount restricted to the extent of

one month’s net salary (exclusive of allowances of a temporary nature). The

overdraft facility may be made available after six months continuous salary

credit by the employer.

301-2012-BC SKCC- The limit under SKCC is valid for 5 years and it is subject to annual

review.

RuPay Kisan Cards will be issued to the existing as well as new SKCC

holders.

Crop Insurance is mandatory. Personal Accident Insurance Scheme (PAIS)

shall be made available to all eligible farmers on compulsory basis.

305-2012-BC Prior permission of RBI is not required to open a bank account in India of a

foreign student – as a foreign student studying in India would be considered a

“Person Resident in India”.

327-2012-BC Bank has acquired Certificate of Registration from Association of Mutual

Funds In India (AMFI. AMFI registration number (ARN) 36031 is valid from

29.06.2012 to 28.06.2015. Under sub-broker code, branch BIC is to be

mentioned.

328-2012-BC Password structure and Management in our Bank Maximum Password Age – 30 Days

Minimum Password Length – 8 Characters

Account Lockout – 3 invalid attempts

338-2012-BC In case of death of an employee as a result of or during Bank robbery or

attacks by terrorists, including left-wing extremism on Bank employees, the

family of deceased will be given compensation by the Bank as follows:

In case of death of Officers : 20 Lacs

In case of death of Clerical/Sub staff : 10 Lacs

In respect of the persons other than the Bank employee who may get killed as

a consequence of or during robberies and/or attack of terrorists, the Bank will

pay a lumpsum compensation of 3 Lacs to the family of the deceased.

23

In case of Bank employees / customers / members of public who actively

resists Bank robberies and terrorist attacks on Banks, the Bank may consider a

cash reward not exceeding 2 Lacs.

Circular No.114-

2013-BC-PSCD-12 The limit of loans to farmers against pledge/hypothecation of agricultural

produce (including warehouse receipts) for a period not exceeding 12 months

stands increased from Rs.25 lakh to Rs.50 lakh both under direct and indirect

agriculture.

Imp. Circulars-2013

Cir. No. Particulars

Circular No. 007- 2013-BC

As per extant RBI guidelines, Savings / Current Account shall be treated as

Inoperative / Dormant if there are no transactions in the account for over a period

of 2 years. (only transaction induced at the instance of customers and third party

shall be considered. Service Charges levied by the Bank or interest credited by

the Bank shall not be considered).

Circular No. 009-

2013-BC SCHEME FOR FINANCING FARMERS FOR PURCHASE OF LAND FOR

AGRICULTURAL PURPOSE. “Direct Agricultural Advance”.

Maximum loan amount permitted for purchase of land is 10.00 lakh. No margin

is stipulated for loans up to 1,00,000/- For loans above 1,00,000/- a minimum

margin at 10% of the project cost shall be met by the borrower. Loan is to be

repaid in 7-10 years in half yearly / yearly installments including a maximum

moratorium period of 24 months.

Circular No.020- 2013-BC-

CREDIT GUARANTEE SCHEME-Gist of the Modifications is as under:

1. The “third party guarantee" is more clearly defined under the scheme, which

shall not include guarantee of Sole-Proprietor, Partners, Trustees, Karta,

Coparceners and Promoter Directors.

2. In the place of existing Guarantee Fee and Annual Service Fee, a Composite

all in Annual Guarantee fee (AGF) payable.

Annual Guarantee Fee (AGF) [% p.a.]

Credit Facility Women, Micro Enterprises and units

in North East Region (incl. Sikkim)

Other

Upto 5 lakh 0.75 1.00

Above 5 lakh and up to

100 lakh

0.85 1.00

24

3. The time limit for lodging claim is increased to 2 years from the date of NPA

or within 2 years of expiry of lock in period whichever is later.

4. The initiation of legal proceedings as a precondition for invoking of

guarantee is waived for credit facilities up to 50,000. 5. The Second installment of 25% of the guaranteed amount will be paid on

conclusion of recovery proceedings or after three years of obtention of decree of

recovery, whichever is earlier. The Trust shall pay 75 per cent of the guaranteed

amount on preferring of eligible claim by the lending institution, within 30 days,

subject to the claim being otherwise found in order and complete in all respects

Circular No.021-

2013-BC

HL-MAXIMUM PERIOD OF REPAYMENT (TENOR)- 30 years subject to 75 years of age of the borrower inclusive of moratorium & total repayment period

Circular No. 026-

2013-BC

SPECIAL REFINANCE SCHEME FOR URBAN LOW INCOME HOUSING

OF NATIONAL HOUSING BANK (NHB)—REVISION IN LOAN LIMIT-

NHB has revised the loan limit ceiling from the current limit of 5.00 lacs to

10.00 lacs.

Circular No. 049-

2013-BC

SYNDKISAN TATKAL- Minimum 1000/- or 50% of SKCC limit or 25% of

annual income subject to a maximum of 50000/-. Repayable within 5 years in

half yearly / yearly instalments based on income generation to the farmer. SKCC

holders having satisfactory track record of at least two years are eligible.

Circular No. 054-

2013-BC

THE ENFORCEMENT OF SECURITY INTEREST AND RECOVERY OF

DEBTS LAWS (AMENDMENT) ACT, 2012-

*Section 13, Sub Section 3(A) deals with borrowers right of objections and the

reply to be given by the Bank within 7 days. As per the amendment, the reply by

the Bank is to be given within 15 days, thus enhancing the time limit for reply by

the Authorized Officer.

*Section 13(9) earlier provided that in the case of financing by more than one

secured creditor or joint financing, rights under the Act could be exercised only

if secured creditors representing 75% in value of the amount outstanding as on

record date agree for such action. This has been reduced to 60% in value of the

amount outstanding as on record date.

*Bank cannot hold attached property, except such as is required for its own use,

for any period exceeding seven years.

Circular No. 085-

2013-BC

JOINT LENDING ARRANGEMENT (JLA- The scheme shall be applicable to all lending arrangements, by a single

borrower, with aggregate credit limits (both fund based and non-fund based) of

150 crore and above, involving more than one Public Sector Bank. The scheme

is also applicable to all non-investment grade borrowers (External Credit Rating

below BBB or equivalent), irrespective of the amount of exposure.

To keep JLA size manageable, the minimum share of a member must be 10% of

the aggregate working capital limits for aggregate working capital exposures (FB & NFB) under 1,000 crore. For working capital exposures of 1,000 crore and

above, the minimum participation in the working capital JLA should be at least

100 crore.

25

Circular No. 104-

2013-BC

Authorized Branches are permitted to open NRO accounts of individual/s of

Bangladesh nationality without the approval of the Reserve Bank of India. For opening of NRO accounts by entities of Bangladesh ownership, individuals/

entities of Pakistan Nationality/Ownership branches shall continue to obtain

prior approval of Reserve Bank of India.

Circular No.114-

2013-BC Agriculture: (i) The limit of loans to farmers against pledge/hypothecation of agricultural

produce (including Warehouse Receipts) for a period not exceeding 12 months

stands increased from 25 lakh to 50 lakh both under direct and indirect

agriculture.

Circular No.115-

2013-BC

CREDIT RISK GUARANTEE FUND SCHEME FOR LOW INCOME

HOUSING IN URBAN AREAS-

NHB has communicated vide their letter No. NHB/CRGFTLIH/6741/2013 dated

April 19, 2013 that RBI has accorded Zero’ Risk Weight and ‘Nil’ Provisioning

for the guaranteed portion of eligible housing loans by CRGFTLIH

Circular No.119-

2013-BC

TDS ON INTEREST ON DEPOSITS - SUBMISSION OF FORM NO 15G/15H-For non deduction of tax on Interest Paid to all category of depositors

except Limited Companies, Partnership Firms and Non Residents, where

credit/payment of interest exceeds 10,000/- p.a depositors can submit Form No

15G (in Triplicate) duly quoting PAN subject to interest paid/ credited at the

branch is below the basic exemption limit of 2,00,000/-. Senior Citizens of 60

years and above have to submit Form No.15H (in triplicate) duly quoting PAN

for non deduction of tax at source on interest on their deposits without any limit.

Failure to submit the copy of Form 15G/ 15H to the Income Tax Department

attracts penalty of 100/- per day u/s 272A (2)

Circular No.281-

2013-BC

COLLATERAL FREE LOANS TO MICRO AND SMALL ENTERPRISES

(MSE) –

Credit facilities up to 10.00 lac: Collateral security shall not be obtained and

eligible accounts shall be covered under CGMSE. • Credit facilities above 10.00 lac up to 100.00 lac eligible for coverage under

CGMSE:Collateral security shall not be obtained and all accounts shall be

covered under CGMSE.

• Credit facilities above 10.00 lac under MSE not eligible for coverage under

CGMSE: Sanctioning authority shall explore the possibility of obtaining

Mortgage of Property /Other collateral security of appropriate value, in addition

to primary security, which shall cover at least 110% of the value of the limit.

Circular No.335-

2013-BC

PRIORITY SECTOR CREDIT – CLASSIFICATION OF LENDING TO

MICRO, SMALL & MEDIUM ENTERPRISES (MSMES) SECTOR.

Definition of Micro, Small and Medium Enterprises:

(a) Manufacturing Enterprises i.e. Enterprises engaged in the manufacture or

production, processing or preservation of goods as specified below:

(i) A Micro Enterprise is an enterprise where investment in Plant and Machinery

does not exceed 25 lakh;

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(ii) A Small Enterprise is an enterprise where the investment in Plant and

Machinery is more than 25 lakh but does not exceed 5 crore; and

(iii) A Medium Enterprise is an enterprise where the investment in Plant and

Machinery is more than 5 crore but does not exceed 10 crore. (b) Service Enterprises i.e. Enterprises engaged in providing or rendering of

Services and whose investment in Equipment (original cost excluding Land and

Building and Furniture, Fittings and other items not directly related to the

Service rendered or as may be notified under the MSMED Act, 2006) are

specified below.

(i) A Micro Enterprise is an enterprise where the investment in Equipment does

not exceed 10 lakh;

(ii) A Small Enterprise is an enterprise where the investment in Equipment is

more than 10 lakh but does not exceed 2 crore; and

(iii) A Medium Enterprise is an enterprise where the investment in Equipment is

more than 2 crore but does not exceed 5 crore.

Circular No.341-

2013-BC JAWAHARLAL NEHRU NATIONAL SOLAR MISSION -The subsidy is back ended with a lock in period of 3 years and the administration of subsidy and

refinance for the pre-approved models is done by NABARD.

Circular No.345-

2013-BC

Bank has decided to enhance the Fee payable to the Credit Verification

Agencies from 120/- presently to 750/- per case.

Circular No.373-

2013-BC

NATIONAL RURAL LIVELIHOOD MISSION (NRLM) – AAJEEVIKA –

GUIDELINES FOR INTEREST SUBVENTION SCHEME DURING 2013-14.

150 most backward districts eligible for Interest Subvention Scheme

All Women SHGs are eligible to avail credit up to 3 lakhs at 7% p.a. with

interest subvention. But, SHGs which have availed capital subsidy under SGSY

in their existing loans will not be eligible for benefit for their subsisting loan

under this scheme.

Circular No.006-

2014-BC Interest subvention of 2 % p.a. will be made available to Public Sector Banks

(PSBs) and Private Sector SCB (in respect of loans given by their Rural and

Semi-urban Branches) on their own funds used for short-term crop loans up to

3,00,000/- per farmer provided the lending institutions make available short term

credit at the ground level at 7% per annum to farmers. This amount of interest

subvention will be calculated on the crop loan amount from the date of its

disbursement/drawal up to the date of actual repayment of the crop loan by the

farmer or up to the due date of the loan fixed by the Banks whichever is earlier,

subject to a maximum period of one year.

2. Besides, an additional interest subvention @3% will be available to the

prompt paying farmers from the date of disbursement of the crop loan up to the

actual date of repayment by farmers or up to the due date fixed by Bank for

repayment of Crop Loan, whichever is earlier, subject to a maximum period of

one year from the date of disbursement. This means the prompt paying farmers

would get short term crop loans @4% per annum during the year 2013-14.

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138/2014/BC Key Elements of the KYC Policy

Following are four key elements of our KYC policy: 1. Customer Acceptance and Customer Severance Policy

2. Customer Identification Procedures;

3. Monitoring of Transactions;

4. Risk Management

207-2014-BC All Regional Offices are permitted to empanel the Credit Verification Agencies

for verifying, validating and certifying vital details of Credit Information on

individuals applying for loans as per extant guidelines.

215-2014-BC Benefits of additional interest to Bank’s staff members or retired staff members

is available only in the case of the staff member or retired staff members has an

account singly or jointly with family member where the staff member/retired

staff member is the Principal Account Holder.

Payment of additional interest of 1% to the spouse of the deceased staff member

is in vogue in our bank as per guidelines in Manual of Instructions, Vol. VII,

Para 7.2.26(c). This guideline to pay additional rate of interest of 1% to the

spouse of the deceased staff is as per RBI directives in which RBI has given the

discretion to individual banks.

220-2014-BC RENEWAL / CREATING OF VCC LESS THAN 1,000/- . Though, the product parameter permits renewal of deposits with maturity value

less than 1000/- and fresh deposits of less than 1000/-, Branches are permitted to

utilize the following options of 1 and 2 given below only in respect of

beneficiaries of Court cases and Government deposits.

1. Branches can renew the matured deposits or create new deposits with a

minimum amount of deposit 100/- and above in VCC product number 405,

where the maximum term is 120 months. 2. Branches can renew the matured deposits or create new deposits with a

minimum amount of deposit 100/- and above in VCC product number 411,

where the minimum term is above 120 months.

238-2014-BC “Subsidy Amount” received in respect of Govt. Sponsored schemes

PMRY/KVIC-REGP/PMEGP and other Back-ended subsidy schemes, the

subsidy amount should be kept as FD (No Interest) under product code 413. In

such instances, interest to be charged on the loan amount shall be less by an

amount equal to the amount of subsidy kept as FD.

302-2014-BC All loan accounts of 5.00 crore and above where property is taken as security are

to be subjected to Legal Audit by getting the title deeds re-verified by another

empanelled advocate (other than the one who has given original opinion

confirming genuineness of the title deeds) once in 2 years at the time of annual

review of the loan accounts, till the loan is fully closed.

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342-2014-BC COMPANIES ACT, 2013-The Act contains 470 Sections, divided into 29

Chapters with 7 Schedules.

Memorandum and Articles of Association of the Company is to be verified to

ascertain whether the Company is empowered to borrow or give guarantee or

provide security.

Memorandum and Articles of Association and Board resolution as explained in

Section 180 (1) (a), 180 (2) and 180 (4) of the Companies Act 2013, is to be

verified, for determining the borrowing powers of the Company.

Creation of charge is to be done by the branches within 30 days of date of

agreement or modification in Form No. CHG 1 (for other than Debentures) or

Form No. CHG 9 (for debentures including rectification) by branches.

Section 180 of the Companies Act, 2013, deals with restrictions on powers of

Board and Branches/ Offices to examine the same before entertaining proposals.

e-Voting compulsory for Listed and Companies with more than 1000

shareholders.

Section – 149 (1) - Every Company shall have a Board of Directors consisting of

Individuals as Directors and shall have – (a) a minimum number of 3 Directors in the case of a Public Company, 2

Directors in the case of a Private Company and one Director in the case of a One

Person Company; and

(b) a maximum of 15 Directors; Provided that a company may appoint more than

15 Directors after passing a Special Resolution;

A person can be a Director in maximum of 20 Companies out of which only 10

can be Public Companies.

Each Listed Public Company to appoint Independent Directors with a maximum

2 terms of 5 years each.

All companies to have uniform financial year -1st April to 31st March.

A company cannot give any guarantee or provide any security in connection with

any loan taken by its director or by any other person in whom the director is

interested.

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421-2014-BC 1. ATM / Debit Card to be issued to the Karta / Ejaman only of the HUF. 2. A Separate application form duly signed by Karta / Ejaman and all other

coparceners shall be obtained.

3. On receipt of notice of death of the Karta, operation in the account to be

stopped and ATM/Debit Card is to be taken back for cancellation.

4. Branch to ensure to obtain necessary documents / Memorandum from the

minor after they become major in the HUF.

5. For issuance or renewal / duplicate card, request from all members of HUF is

to be obtained.

6. In case of lost card, request for blocking of the card can be obtained from any

member of the HUF. Blocked cad can be reactivated only after obtaining request

from all the members of the HUF.

427-2014-BC RBI has advised Public Sector Banks not to charge any penalty for non maintenance of minimum balance in respect of inoperative/dormant accounts.

456-2014-BC “Special One Time Settlement Scheme for settling Non Performing

Education Loan with original sanctioned limit of 4.00 lakhs and below”.

The Scheme will be in operation up to 31.03.2016 with a provision to collect the

amount up to 30.06.2016.

All Education Loan with Original sanctioned limit of 4.00 lakhs & below

classified as NPA as on 31.12.2014.

458-2014-BC It has since been decided to advance RTGS business hours to 8.00 hours from

9.00 hours and extend closing time of RTGS to 20.00 hours on week days. RTGS

business window will be open from 8.00 hours to 15.30 hours on Saturdays.

036-2015-BC Competent Authority has waived the annual fee to be collected for issue of ATM

Cards for the accounts opened under Synd Balashakthi, to bring in the ‘Gen

Next’ segment of the Society into our fold and as a gesture of earning goodwill

from youth of our Nation.

040-2015-

BC

Payment of Service Charges @ 1.75% of the Four Wheeler loan with a cap of

50000/- per loan to Authorised Four Wheeler Dealers against the loan amount

disbursed from the leads provided by them.

Payment of Service Charges at the rate of 1000/- per Four Wheeler loan to

the Sales Executives of Four Wheeler Dealers against the leads directed by

them and converted into real business.

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Summary of Imp. BC Cir 2015

Fund Transfer transaction limit including IMPS for Mobile Banking users is enhanced from

Rs.25,000/- to Rs.50,000/- per day.

‘Strategic Debt Restructuring (SDR) converting loan dues to equity shares.

RRR- REVIVAL, REFORM AND RESTRUCTURING- The decision on invoking the SDR by converting the whole or part of the loan into equity shares

should be taken by the Joint Lenders‟ Forum (JLF) as early as possible but within 30 days from the

above review of the account. Such decision should be well documented and approved by the majority

of the JLF members (minimum of 75% of creditors by value and 60% of creditors by number);

Post the conversion, all lenders under the JLF must collectively hold 51% or more of the equity

shares issued by the company.

SyndGuide - a mobile app for everyone to know about bank's products & services, interest rates,

Branch locator etc.

300/2015/BC - The minimum amount of deposit into/withdrawal from currency chest will be

Rs.1,00,000/- and thereafter, in multiples of Rs.50,000/-.

Penal interest shall be levied at the rate of 2% over the prevailing Bank Rate for the period of delayed

reporting/wrong reporting/non-reporting /inclusion of ineligible amounts in chest balances. Penal

interest will be calculated on T+0 basis.

Soiled note remittances to RBI /diversion to other currency chest/s should not be shown as

withdrawal by chest/s / link offices. In case such remittances are wrongly reported as 'withdrawals', a

penalty of Rs.50,000/- will be levied irrespective of the value of remittance and period of such wrong

reporting.

RPA- (Reserve Pending Appropriation)

Central Govt has declared second and fourth Saturday of every month as public holiday for Banks in

India in exercising power conferred by section 25 of the N I Act 1881 wef 01.09.2015.

This is applicable to banks included or not included in second schedule of RBI Act 1934.

A new overdraft product 148 is created for SyndMUDRA Card.

Jeevanpramaan- Seeding of Aadhar numbers of Pensioners

PAIS-Personal Accident Insurance Scheme- arrangement with United India Inssurance Co Ltd

Rs.13/- per head, Card holder up to age 70 are eligible

SKCC/SKSCC- share of Bank-Rs.8.65, Borrower Rs.4.35

SSCC- share of Bank-Rs.6.50, Borrower Rs.6.50

31

Standard Rates of Annual Guarantee Fees.-

Women, Micro Enterprises

and units in North East

Region (including Sikkim)

Others

Up to Rs.5 Lakhs 0.75% 1.00%

Above Rs. 5 Lakhs up to Rs.100 Lakhs

0.85% 1.00%

The differential rates of ASF/AGF are applicable depending upon NPA levels of MLIs of the Trust.

NPA level of 12% and below Standard Rates of Annual Guarantee Fees are applicable.

Charge rate of interest at Base Rate (presently 9.70%) for MUDRA Loans up to sanctioned limit of

1.00 lakh (Rupees One Lakh Only) and sanctioned on or after 08.04.2015.

Our Bank has been conferred with the highest “Rajbhasha Keerti Puraskar” for the year 2014-15

among other Nationalized Banks and Financial Institutions in Region ‘C’ for effective

implementation of Official Language Policy.

Section 20(1) of the Banking Regulation Act, 1949 lays down the restrictions on loans and advances

to the directors and the firms in which they hold substantial interest. Purchase of or discount of bills

from directors and their concerns, which is in the nature of clean accommodation, is reckoned as

loans and advances for the purpose of Section 20 of the Banking Regulation Act, 1949.

Solar pumping system up to 10 HP are eligible for subsidy under the NABARD scheme.

FCNR Deposits- Maximum period- 5 years. Minimum-1 year. Compounding effect on interest can

be given only if deposits are kept for a minimum period of one year and one day.

Reserve Bank of India has suggested implementing “checking at multiple levels of cheques with

threshold limit of 5.00 lakhs initially”.

Additional interest of 0.50% over the card rate is payable to Resident Indian Senior Citizens on

Domestic Term Deposits of less than Rs. 5 Crore and the maturity tenor of one year and above

only. (Not applicable ` deposits).

The Supreme Court upheld transgender person’s right to decide their self-identified gender and

directed the Centre and State Government to grant legal recognition of their gender identity such as

male, female or as third gender.

UAM- Udyog Aadhaar Memorandum

Full KYC exercise will be required to be done at least every two years for high risk individuals and

entities, at least every ten years for low risk and at least every eight years for medium risk

individual and entities.

32

Education Cess at 3% continues to be applicable for all employees/ pensioners/ pigmy commission

Surcharge @12% is applicable where the total income exceeds 1crore.

‘Time Deposits’ to include recurring deposits within its scope for the purposes of deduction of tax

under section 194A of the IT Act, 1961. TDS has to be effected in the Recurring Deposits also

where Interest on TD exceeds 10,000/- unless declaration in Form15G/H is submitted.

Circular No.292-2015-BC-POLICY ON COLLECTION OF CHEQUES / INSTRUMENTS-

Branches/extension counters of the bank will consider providing immediate credit for outstation

cheques / instruments up to the aggregate value of 15000/- (rupees fifteen thousand only) tendered for

collection by individual account holders subject to satisfactory conduct of such accounts for a period

not less than 6 months.

The facility of immediate credit would also be made available in the case of instruments denominated

in U.S. Dollars and other foreign currencies provided the rupee equivalent of such instruments is not

more than 15000/- subject to the same norms as applicable to domestic cheques.

For cheques and other instruments sent for collection to centers within the country the following time

norms shall be applied:

(a) Cheques presented at any of the major Metro Centres (New Delhi, Mumbai, Kolkata and

Chennai) and payable at any of the other three centers: Maximum period of 7 days*.

(b) Other Metro Centres and State Capitals (other than those of North Eastern States and Sikkim):

Maximum period of 10 days*.

(c) In all other Centres: Maximum period of 14 days*.

(d) Cheques drawn on foreign countries: Such instruments are accepted for collection on the „best of

efforts‟ basis. Bank may enter into specific collection arrangement with its correspondent bank for

speedy collection of such instruments. Bank would give credit to the party on credit of proceeds to

the bank‟s Nostro Account with the correspondent bank after taking into account cooling periods as

applicable to the countries concerned. Maximum time period (inclusive of cooling period) for

affording the credit shall be 45 days.

* Holidays are to be excluded for the purpose of reckoning the collection Period prescribed above.

Interest for delayed collection shall be paid at the following rates: Domestic instruments: (a) Savings Bank rate for the period of delay beyond 7/10/14 days* as the case may be in collection

of outstation cheques.

(b) Where the delay is beyond 14 days, interest will be paid at the rate applicable to term deposit for

the respective period.

(c) In case of extraordinary delay. i.e. delays exceeding 90 days, interest will be paid at the rate of

2% above the corresponding Term Deposit rate. (d) In the event the proceeds of cheque under collection were to be credited to an overdraft / loan

account of the customer, interest will be paid at the rate applicable to the loan account. For

extraordinary delays, interest will be paid at the rate of 2% above the rate applicable to the loan

account.

32

33

Frequent Dishonour of Cheques of the value of 1.00 crore and above:

In the event of Dishonour of cheques of the value of 1.00 crore or more, on four occasions during a

financial year for reasons like „Funds insufficient‟, „Exceeds arrangement‟ etc., no fresh cheque

book will be issued to the customer and the Branch may even consider closing the account at its

discretion after giving notice of one month.

If a cheque of the value of 1.00 crore or more is Dishonoured for a third time on any account for the

reasons specified above, a cautionary advice shall be issued to the account-holder indicating the

consequential stoppage of cheque facility or the bank‟s intention to close the account, as applicable,

if there is one more such instance of Dishonour during the year.

Frequent Dishonour of Cheques of the value of less than 1.00 crore:

In the event of Dishonour of cheques of the value of less than 1.00 crore on six occasions during the

financial year for reasons like „Funds insufficient‟, „Exceeds arrangement‟ etc., no fresh cheque

book will be issued to the customer and the Branch may even consider closing the account at its

discretion, after giving notice of one month.

If cheques of the value of less than 1.00 crore are Dishonoured for a fifth time in any account, a

cautionary advice shall be issued to the account-holder indicating the consequential stoppage of

cheque facility or bank‟s intention to close the account, as applicable if there is one more instance of

such Dishonour during the year.

If ECS (Debit) mandate on the account of a customer are Dishonoured four times in a financial year

due to reasons like „Balance insufficient‟ and „Not arranged for/Exceeds arrangement‟, the Branch

concerned shall write to the User institution and the Sponsor Bank to delete the account holder‟s

name from the list sent to the Clearing House under ECS or even consider closing the account at its

discretion after giving notice of one month.

As soon as the number of instances of Dishonour of ECS (Debit) mandates for the specified reasons

in a financial year reach three, a cautionary advice indicating the steps proposed in the event of

one more instance of such Dishonour during the year, shall be issued to the account holder.

Credit Policy and Credit Risk Policy-

Clearance of New Business Group Committee at Corporate Office shall be obtained for new

proposals of new borrowers only seeking credit facilities above 35.00 Crs and Clearance accorded

by NBG Committee shall be valid for a period of 120 days only.

Project Appraisal Cell at Corporate Office shall undertake a comprehensive credit appraisal of all

Term Loan proposals with project cost of 70.00 crore and above and Banks exposure of above 35.00

crore where production/ construction/ process is involved

Term Loan‘ is a loan which has a specified maturity which is payable in installment or in bullet

form.

34

Infrastructure Finance-Prior clearance of ALCO shall be obtained for exposures above 50 crores

with repayment period of 12 years and above.

Sensitive Sector refers to advances to Real Estate, Capital Market and Commodity Sector.

Structured Financial Messaging System (SFMS)

Premature withdrawal of NRE/FCNR (B) Deposits shall not be available where loans against such

deposits are to be availed.

Insisting on external Bank loan rating for exposures of 5.00 crores and above and/or having annual

turnover of 50.00 crores and above for all borrowers except MSE, Finance against Rent Receivables

and Agriculture.

Micro & Small Enterprises are exempted from external rating for exposures up to 10.00 crores.

For borrowal proposals of above 10.00 crores, external rating need not be a pre-condition for

sanction. However, such accounts should be externally rated within six months of takeover.

Cover all advances granted to Micro and Small Enterprises up to 100.00 lakhs under CGMSE

without any exception.

In order to give focused attention to the credit needs of corporate enjoying limits of over 5.00 crore

up to 100.00 crore a separate vertical called Mid Corporate Department is established at Corporate

Office level.

Branches have to obtain minimum 2 valuation report for properties valued at 10 crore and above.

However, in respect of Housing Loans, for loan amount of 100 lakhs and above, valuation report

has to be obtained from 2 independent valuers.

Takeout Financing Arrangement: Take out financing structure is essentially a mechanism designed

to enable banks to avoid asset liability maturity mismatches that may arise out of extending long

tenor loans to infrastructure projects. Under the arrangements, banks financing the infrastructure

projects will have an arrangement with IDFC or any other financial institution for transferring to the

latter the outstanding in their books on a pre-determined basis.

Loans/advances to individuals from the banking system against security of shares, convertible bonds,

convertible debentures, units of equity oriented mutual funds and PSU bonds shall not exceed the

limit of 10 lakh for subscribing to IPOs. Advances other than for IPOs to individuals from the

banking system against security of shares, convertible bonds, convertible debentures and units of

equity oriented mutual funds held in physical and Demat form shall not exceed 10 lakh and 20 lakh

respectively.

A uniform margin of 50 per cent shall be applied on all advances/financing of IPOs/issue of

guarantees and Co-acceptances for capital market operations. A minimum cash margin of 25 per

cent (within the margin of 50%) shall have to be maintained in respect of guarantees issued by banks

for capital market operations.

34

A ceiling of 2% of gross credit is prescribed for advances against the commodities.

Branches/Offices shall return the securities to the customer within 15 days of closure of all his direct

and indirect liabilities.

The minimum hurdle rate shall be Synd 5 in respect of all exposures including Retail Loans, below

which no exposure is permitted to be taken. In case of exposures to sensitive sectors, including Real

Estate Sector, and NBFC- including NBFC-NDSI, the hurdle rate shall be SYND-4. For takeover

accounts also, hurdle rate shall be SYND-4. However, in the case of Synd Nivas & Synd Vahan

Retail Product, the hurdle rate shall be Synd 6.

Hurdle rating for Takeover of accounts (other than financing against Rent Receivables & MSME) is

SYND 4. For financing against Rent Receivables & MSME borrowers, it is SYND 5.

In case of finance to Public Ltd Companies, it should be ensured that if the facilities sanctioned and

the existing facilities, taken together, are in excess of paid-up capital and free reserves of the

borrower company, a resolution under Section 180 of the Companies Act, 2013 authorizing the

borrowing has to be obtained.

Working Capital assessment computed on the basis of 20% of projected annual turnover for MSE

borrowers up to Credit limits of 5.00 crores for both new and existing loans.

In the case of credit limits of above 2.00 crore for IT & software industry, cash budget method to be

adopted for assessment of working capital limit.

All NBFCs with exposures of 10.00 crore and above, assessment shall be based on Cash Budget method.

Prior clearance of ALCO shall be obtained for taking term loan exposures above 50 crores with

repayment period of 12 years and above.

As RBI has reduced the risk weight in respect of CRE-RH to 75% and also the provisioning norms

for standard assets to 0.75% (irrespective of rating), External Rating in respect of CRE-RH category

is not to be insisted.

An overall exposure ceiling of 20% of gross credit and non SLR investments has been fixed in

respect of all exposures under Real Estate.

Within the overall ceiling, a sub ceiling of 7.50% of gross credit and non SLR investments has been

fixed for commercial real estate exposures, including CRE-RH and LRD.

Exposures under CRE & CRE-RH, other than LRD shall not exceed 4.50%.

35

36

Margin in respect of CRE proposals-Minimum margin of 50% (including Owner‘s fund in the

project and advances from buyers) of the project cost shall be maintained.

Exposures to NBFCs including MFI shall not exceed 22% of total gross credit and non SLR

investment.

Branches can sanction & issue guarantees, performance or financial for a maximum period of 3 years.

Beyond 3 years up to 10 years, request for Bank Guarantee shall be examined and considered /

sanctioned by the Regional Managers (RLCAC I) or FGMLCAC.

Any Guarantee with maturity of more than 10 years shall be considered / sanctioned only by CO-

CCD.

365-2015-BC- “It has been decided to allow State Level Bankers’ Committee / District Level

Consultative Committee/ Banks to take a view on rescheduling of loans if the crop loss is 33% or

more. Banks may allow period of repayment of upto 2 years (including the moratorium period of 1

year) if the loss between 33% to 50%. If the crop loss is 50% or more, the restructured period for

repayment may be extended to a maximum of 5 years (including the moratorium period of one

year)”.

Circular No.393-2015-BC/Renewal of Deposits:

1. Renewal of overdue domestic Term Deposit: a) Whenever overdue term Deposits are renewed, they must be renewed for a minimum period of 7

days plus overdue period.

b) In case of premature refund of the renewed Deposit, which has not completed 7 days from the

actual date of renewal, no interest is payable on the Deposit for the overdue period even though the

deposit was with the bank for more than 7 days.

2. a) If the Deposits are renewed within 7 days from the date of maturity, interest rate prevailing on the date of maturity is payable. b) Where the overdue period from the date of maturity exceeds 7 days, the rate of interest payable on

the overdue term deposits shall be the applicable rate of interest (for the period of renewal) prevailing

on the date of maturity or on the date of renewal, whichever is less.

3. If the 7th day falls on a Sunday/holiday, the Deposit should be renewed on the previous working

day itself.

Circular No.500-2015-BC- Powers to be exercised by the various Authorities for settlement of claims to the assets of the

deceased customers. [Net asset value after deducting direct/indirect liability].

1) Branch Head in Scale I (not being Prob. Officer)- Rs.75,000/-

2) Branch Head in Scale II-Rs.1,50,000/-

3) Branch Head in Scale III-Rs.2,50,000/-

37

Micro Units Development and Refinance Agency Ltd (MUDRA)-

Non- farm enterprises in manufacturing, trading and service sector whose credit needs are below

10.00 lakhs and loan given to income generating activities disbursed on or after April 08, 2015, will

be known as MUDRA loans.

Eligible beneficiaries pursuing micro enterprises can be issued SyndMUDRA Card up to a card

limit of 25000/- to meet working capital needs. New overdraft product 148 is created for

SyndMUDRA Card.

“SKILL LOAN SCHEME” – 1. The loan will be in the range of 5000/- to 150000/-.

2. Uniform Rate of Interest at Base Rate + 1.50 % p. a. i.e., 11.20 % at present.

3. The loan will have maximum tenure up to 7 years.

4. No collateral security required for Skill Loan. Credit Guarantee of National Credit Guarantee

Trust Company Ltd (NCGTC) covering 75% of the outstanding loan amount is available once the

arrangement with NCGTC by the Bank is operational.

Where the cost of House/Flat/Dwelling unit does not exceed 10.00 lakhs, Stamp Duty, Registration

charges and other Documentation charges may be included to the cost of the House/Flat/Dwelling

unit for the purpose of calculation of LTV.

Branches are advised to grant to eligible borrowers belonging to SCs / STs such advances to the

extent of not less than 40 percent of total DRI advances.

Under the DRI scheme, the eligibility criteria that size of land holding should not exceed 1 acre of

irrigated land and 2.5 acres of unirrigated land is not applicable to SCs / STs. Moreover, members of

SCs / STs satisfying the income criteria of the scheme can also avail of Housing Loan up to 20,000/-

per beneficiary over and above the individual loan of 15,000/- available under the scheme.

“CREDIT ENHANCEMENT GUARANTEE SCHEME FOR SCHEDULE CASTES

(CEGSSC)”-

The Government of India initially allotted a corpus of 200.00 Crores for the scheme. Industrial

Finance Corporation of India Limited (IFCI) has been appointed as the Nodal Agency for the

Scheme and also entrusted with the responsibility of managing the scheme. IFCI, under the aegis of

Department of Financial Services (DFS) shall provide guarantee to Public Sector Banks for providing

assistance to SC Entrepreneurs. The Member Lending Institution (MLI) shall enroll as member of

IFCI Ltd., in order to avail guarantee under the scheme. The guarantee cover shall be ranging from

15.00 lakh to 5.00 Crore.

Government of India’s notification dated April 08, 2015, where in they have reduced the criterion of

crop loss from 50% to 33% for providing input subsidy (compensation) to the farmers affected by

Natural Calamities.

38

CREDIT MONITORING POLICY-

All credit limits classified as performing assets and secured by inventory and / or book debts

including Working Capital Demand Loans of 5 crore and above in SYND-1 to SYND-4 and 1 Crore

and above in other rated accounts are to be subjected to stock audit once in a financial year.

Stock and Receivable (Book Debt) Audit shall be completed in all eligible accounts by 30th November every year and the audit report shall be closed by 31st January of the succeeding year.

In the case of NPAs, all accounts including suit filed / DRT cases with real account balance of 5

Crores and above where hypothecation of stock and / or book debts taken as security and the same is

available, Stock Audit at annual intervals shall be conducted.

Units shall be compulsorily visited by Regional offices, starting from exposure of 5.00 crores

and above.

CRILC -Reserve Bank of India (RBI) has set up a Central Repository of Information on Large

Credits (CRILC) to collect, store, and disseminate credit data to lenders.

Any sanction of either Working Capital or Term Loan (fresh/enhancement) that may take the total

exposure to 5.00 crores and above (Fund based and non fund based) to any borrower shall be subject

to Credit Audit.

Provisioning Norms for NPA Accounts-

Substandard Asset-

(on the balance outstanding without making any allowance for Guarantee cover or securities available)

Secured Exposure under SSA (on entire outstanding book balance) 15%

Unsecured Exposure under SSA (on entire outstanding book balance) 25%

Unsecured Exposure under SSA in respect of advances to Infrastructure

Sector where appropriate mechanism of escrow accounts available and

branch has a clear and legal first claim on these cash flows.

20%

Doubtful Asset -

On Secured liability- Doubtful assets upto 1 year (DA 1)

Doubtful assets 1 to 3 years (DA 2)

Doubtful assets more than 3 years (DA 3).

25%

40%

100%

On unsecured liability covered by DICGC claim received or ECGC/ CGTMSE/CRGFTLIH claim received/ lodged/ cover available

Nil

On unsecured liability not covered by DICGC claim received or ECGC/

CGTMSE/CRGFTLIH claim received/lodged/cover available.

100%

Loss Asset 100%

39

Deposit products-

Our various Deposit products

1. Synd Silver Current Account – Monthly Minimum Average Balance

– Rs.25,000/-

2. Synd Platinum Current Accounts – Monthly Minimum Average

Balance - Rs.2,00,000/-

3. SyndFlexi Platinum Current Account-Monthly Minimum Average

Balance- Rs.1,00,00,000/-

4. Multicity SB Accounts – Monthly Minimum Average Balance -

Rs.25,000/-

PRODUCTS WITH SWEEP-IN SWEEP-OUT FACILITIES

PREMIUM SAVINGS

ACCOUNT

PREMIUM SAVINGS ACCOUNT

Minimum Average Monthly Balance of Rs.10,000/-

Balance in excess of Rs..10,000/- gets swept out into Fixed Deposit

for 180 days in units of Rs.1,000/-

In case of shortfall in balance to meet payment of cheques etc, drawn

on the Savings Account, the Fixed Deposit is broken prematurely

without any penalty in required number of units of Rs.1,000/- and

swept back into the Savings account.

SYND FLEXI PREMIUM CURRENT ACCOUNT

Minimum monthly average balance - Rs.100.00 lakh- Amounts available in the account in excess of Rs.100.00 lakh will

get automatically swept-out into a fixed deposit for 7 to 14 days

(minimum 7 days & maximum of 14 days) in units of Rs.100.00

lakh, once in a week.

Rate of interest - As applicable to Bulk domestic term deposits of

the tenor of 7 – 14 days.

The customer has to opt for the specific tenure for which the

amount shall be swept out to be placed in fixed deposit, within the

prescribed range of 7 to 14 days while opening the a/c

Rate of interest - As applicable to Bulk domestic term deposits of

the tenor of 7 – 14 days .

SAVINGS BANK

ACCOUNT

is aimed at the day-to-day savings need of ordinary individuals and fetches

interest on daily product basis payable on half yearly basis.

CURRENT ACCOUNT can be opened by individuals, partnership firms, private and public limit

companies, HUFs, societies, trusts etc.

40

SYNDSAMANYA

SAVINGS BANK

ACCOUNT SCHEME

- No Frills (Zero Balance) Account aimed at persons below poverty line,

students etc.

Eligibility

Minimum Balance: Zero Balance

Rate of Interest: 4.00% p.a. (at present)

No. of Cash withdrawals permitted absolutely free of service charges

at Branch Counter: 50 PER YEAR

No restrictions on number of transactions on Bank’s ATM

FIXED DEPOSIT A flexible interest earning term deposit with minimum deposit amount of

Rs.1,000/- for periods ranging from 7 days to 10 years.

SOCIAL SECURITY

DEPOSIT

An ideal monthly income plan wherein you receive monthly interest (at

discounted rate) or quarterly interest on the deposit. All you need to do is to

invest a minimum amount of Rs.1000/- for a fixed term, ranging from 12

months to 120 months.

VIKAS CASH

CERTIFICATE

Fetches you interest compounded quarterly along with principal at the time

of maturity of deposit. Minimum amount accepted is Rs.1000/- and thereafter

in multiples of Rs.100/-. Term of the deposit could be for periods ranging

from 6 months to 120 months.

SYNDICATE SUVIDHA

DEPOSIT

A Fixed Deposit with partial withdrawal facility. A flexible and convenient

scheme whereby a deposit made for a fixed period can be withdrawn in

multiples of Rs.1,000/- when needed without penalty. Accepted for periods

ranging from 15 days to 120 months. The scheme balances the needs of high

returns and liquidity.

SYND CORPORATE

SUVIDHA DEPOSIT

SCHEME

Minimum amount accepted is Rs.500 lakh and thereafter, in multiples of

Rs.100 lakh. Period could range from 7 days to 180 days. Partial

withdrawals in multiples of Rs.100 lakh permitted subject to prior notice of

one day and the balance outstanding after withdrawal should not go below

Rs.500 lakh in any case.

SYNDTAXSHIELD

DEPOSIT SCHEME

The scheme is drawn on the lines of the Union Government’s notification on Bank Term Deposit Scheme, 2006 for the purpose of Sec

80C(2)(xxi) of the Income Tax Act.

Eligibility

Individuals / HUF eligible to open an account with the Bank.

Minimum Deposit - Rs.100/- and multiples thereof

Maximum Deposit - Rs.1,00,000/- per person per annum.

41

Term – Minimum 5 years

Rate of Interest – As applicable to normal deposits.

Premature withdrawal not permitted.

RECURRING DEPOSIT An ideal scheme to save in monthly instalments designed for salaried

persons, professionals, businessmen etc. Minimum monthly instalment

payable is Rs.100/- and the period could range from 12 months to 120

months.

PIGMY 1928 SCHEME This flagship product of the Bank is inspired by the truth that it is the little

drops of water which make a mighty ocean. The depositors can deposit

amounts as low as Rs.5 on a daily / weekly / monthly basis through the

Bank’s authorised agent at their doorstep. The period of the deposit is 63

months.

PIGMY PLUS 2007 A variant of Pigmy 1928 scheme. Minimum contribution accepted is Rs.5

per occasion. The period of the deposit is 72 months.

RESIDENT FOREIGN

CURRENCY [RFC]

ACCOUNT

Resident Indians and NRIs who have returned to India for permanent

residence can open RFC accounts in select foreign currencies at branches

nominated for the purpose. The opening of the accounts and operations

thereon are subject to rules laid down by Reserve Bank of India. RFC

Deposits can be opened in SB as well as Term Deposits.

Non-Resident (External)

{NRE} Savings Bank deposits

These accounts are designed to help NRIs place their savings in a branch of

their convenience in India. The credits in the account can only be out of

remittances from abroad/Travellers Cheques/Foreign Currency

notes/Transfers from NRE/FCNR accounts/ proceeds of certain permitted

investments made out of remittances from aboard. The accounts earn interest

@ 4.00% on daily product basis. The balance in the account is repatriable.

The interest earned on the account is exempted from Income Tax.

Non-Resident (External)

{NRE} Term Deposit.

NRIs can also invest their savings in term deposits with the Bank. The Bank

offers both schemes, which offers simple interest and those, which fetch

compound interest. The interest rate on these deposits is on par with the

domestic deposits. Provisions relating to eligible credits into the account,

repatriability of funds and exemption from Income Tax are same as in the

case of NRE Savings Bank deposits.

Foreign Currency Non

Resident Accounts

(FCNR-B)

These accounts are denominated in the following select foreign currencies:

U.S. Dollar, Great Britain Pounds, Euro, Canadian Dollar and Australian

Dollar. The interest rates on these deposits are subject to RBI directives.

Provisions relating to eligible credits into the account, repatriability of funds

and exemption from Income Tax are same as in the case of NRE Term

Deposits/ Savings Bank deposits. Exchange risk is born by bank.

42

Non-Resident (Ordinary) Account {NRO)

Besides all credits permitted in NRE A/cs, all legitimate dues in India can be

credited to NRO A/cs. The accounts can be maintained in the form of

Savings, Current, Recurring or Fixed deposit A/cs. The accounts can be

jointly held with residents. The fund held in NRO a/c is repatriable as per

RBI guidelines issued from time to time. Presently, it is permissible to remit

or transfer to NRE A/c an amount not exceeding USD one million, per

financial year (April- March), subject to an undertaking by the remitter in the

form 15CA (in duplicate) and a certificate by Chartered Accountant in form

15CB (in Duplicate) as prescribed by CBDT, certifying that the amount

proposed to be remitted is eligible for remittance and that applicable taxes

have been paid/provided for. Tax is applicable on the income earned in the

account i.e. by way of interest and the same is taxable as per DTAT.

INTEREST PAYABLE

ON TERM DEPOSIT IN

DECEASED ACCOUNT

In the event of death of the depositor before the date of maturity of deposit

and amount of the deposit is claimed after the date of maturity, the Bank

shall pay interest at the contracted rate till the date of maturity. From the date

of maturity to the date of payment, the Bank shall pay simple interest at the

applicable rate obtaining on the date of maturity, for the period for which the

deposit remained with the Bank beyond the date of maturity.

However, in the case of death of the depositor after the date of maturity of

the deposit, the bank shall pay interest at savings deposit rate obtaining on

the date of maturity from the date of maturity till the date of payment.

Deduction in respect of

interest on deposits in savings account (Section

80TTA):

Section 80TTA has been introduced from this Financial Year [2012-13] and

it allows to an employee from his gross total income if it includes any

income by way of interest on deposits (not being time deposits) in a savings

account a deduction amounting to :

(i) in a case where the amount of such income does not exceed in the aggregate ten thousand rupees, the whole of such amount; and

(ii) in any other case, ten thousand rupees. If such savings account is maintained in a

(a) banking company to which the Banking Regulation Act, 1949 (10 of

1949), applies (including any bank or banking institution referred to in

section 51 of that Act);

b) co-operative society engaged in carrying on the business of banking

(including a cooperative land mortgage bank or a co-operative land

development bank); or

(c) Post Office as defined in clause (k) of section 2 of the Indian Post Office

Act, 1898 (6 of 1898)

“Either or Survior” Term Deposit with “Either or Survior” or “Former or Survior” mandate,

banks are permitted to allow premature withdrawal of the deposit by the

surviving joint depositors on the death of other, only if , there is joint

mandate from the joint depositors to this effect.

43

Deposit Insurance Each depositor in a bank is insured upto a maximum of Rs.1,00,000 (Rupees

One Lakh) for both principal and interest amount held by him in the same

capacity and same right as on the date of liquidation/cancellation of bank’s

licence or the date on which the scheme of

amalgamation/merger/reconstruction comes into force. The DICGC is liable

to pay to each depositor through the liquidator, the amount of his deposit up

to Rupees one lakh within two months from the date of receipt of claim list

from the liquidator.

Coins The Government of India decides the quantity of coins to be minted on the basis of indents received from the Reserve Bank.

NBFC All NBFCs – ND with an asset size of 100 crore and more as per the last

audited balance sheet will be considered as a systemically important NBFC –

ND. (NBFC SI -Non-deposit taking Systemically important NBFC)

Capital Market The aggregate exposure of the bank to the capital markets in all forms (both

fund based and non fund based) should not exceed 40 per cent of its net

worth as on March 31 of the previous year.

Return of Securities Branches/Offices shall return the securities within 15 days of closure of all

direct and indirect Liabilities.

Currency Swaps Currency swaps are derivative instruments.

General Banking- A Document executed outside India should be stamped- within 3 months of receipt of document

in India.

In terms of provision contained in Sec 26 of banking regulation act every banking company is

required to submit an annual return to the RBI within 30 days after close of calendar year

containing details of accounts which have remained inoperative for a period of -10 years.

The limitation period for a Decree is -12 years.

The limitation period in case of pledge is – No limitation.

If a property/goods worth Rs1 lakh is insured for Rs 80000/- and the loss occurred is to the

extent of Rs 60000/-then insurance company is liable to pay-Rs.48,000/- (80% of the property /

goods value is insured- Hence claim also at 80%)

Customer is having a current account and the minimum balance required is Rs.2000/. The

present balance is Rs.2500/-.A cheque is presented in clearing for Rs 2500/- - pass the cheque.

Current account opened on 01.01.2016 and cheque dated 25.12.2015 presented in the clearing on

25.01.2016 - pass the cheque.

Customer of a bank issues a cheque for Rs.50,000/- to Prime Ministers Relief Fund as donation.

The cheque was returned unpaid with reasons “Funds Insufficient”- No criminal complaint can

be filed as the cheque was not issued for any discharge of liability.

Subhash is having a saving account and he is also power of attorney holder for saving account

holder Ramesh. You receive the notice of death of Mr. Subhash. Two cheques signed by Satish

one in his saving account and the other one in the account of Ramesh are presented in clearing-

pass the cheque of SB account Ramesh and return the cheque of Subhash’s SB account.

44

In terms of sec 138 of N.I act 1881, the payee should give notice within 30 days of receipt return

of cheque for insufficient balance

The term "Blue chip " means- shares of progressive, soundly run public limited companies with

excellent dividend record.

“Bulls & Bears” term is used in- stock exchange- Share Market.

In a securitization deal, the role of a Special Purpose Vehicle (SPV) is to manage the acquired

loans for the purpose of realization or holds them as investment till maturity.

As per FIMMDA’s guidelines, the Mid-Office is responsible for Risk Management.

The regulator for Mutual Funds in India is SEBI.

Banker’s lien is not barred by law of limitation.

In a Garnishee Order, the banker on whom garnishee order served is Judgement Debtor’s Debtor

Sec 131 of NI Act,1881 extends protection to the Collecting Banker.

Our bank’s customer XYZ Ltd, enjoys a SOD limit of Rs.1,00,000.00. The SOD account shows

a credit balance of Rs,10,205.00. The relationship between your bank and XYZ Ltd is:

Debtor/Creditor.

In respect of Regional Rural Banks, the share holding pattern is Central Government 50%,

State Government 15% and Sponsoring Bank 35%.

The Capital Adequacy Ratio is presently at 9%.

All cheque forms should be printed in Hindi and English. The customer may, however, write

cheques in Hindi, English or in the concerned regional language.

An instrument written in Hindi having date as per Saka Samvat calendar is a valid instrument.

MUDRA – Micro Units Development & Refinance Agency Ltd.

Shishu : covering loans upto Rs.50,000/-

Kishor : covering loans above Rs.50,000/-and upto Rs.5 lakh.

Tarun : covering loans above Rs.5 lakh and upto Rs.10 lakh.

Subrogation- Person taking the rights of another person. Example: Guarantor stepping into the

shoes of the creditor.

In case of KYC for SHG, KYC verification for office bearers would suffice.

Time intervals for updation of KYC.

Low risk-10 years, Medium risk-8 years and High risk-2 years.

For Foreign students, one month time is allowed to submit proof of local address.

In case Low risk customers are not able to submit KYC for Genuine reasons, then 6 months

time from the date of opening can be given to them to submit documents.

Opening an account of a person who has lost both his hands-Toe mark can be accepted as signature.

Ultra vires –beyond the powers of the company.

A blind person can open a current account but an illiterate cannot open a current account.

In HUF, senior male coparcener is Karta.

Banking Regulation Act -Sec 11 -Paid up Capital & Reserve requirement - For Domestic

banks-minimum paid up capital & reserve -Rs.5 lacs. Foreign bank-Min Rs.15 lacs & Min

Rs.20 lacs if bank has place of business in Mumbai &/or Kolkata.

45

Banking Regulation Act-Section 24 -Maintenance of SLR - SLR can be max 40%.

RBI Act-Sec 42(1)- Cash Reserve Ratio- no minimum or maximum limit for CRR. Further, RBI

does not pay interest on balance held for CRR purpose by the banks.

NI Act - Sec 5 -Bills of exchange - is an instrument in writing, signed by the maker containing an unconditional order directing a person to pay certain sum to bearer.

NI Act -Sec 6 -Cheque - is a bill of exchange drawn on specified banker to be paid only on

demand.

NI Act -Sec 18- Difference in words & figure-when there is difference in amount in words &

figure, the amount in words is to be treated as the amount ordered by the drawer to pay.

Cheque having impossible date like 31/09/2015 presented on 30/09/2015- pass the cheque.

Cheque dated prior to date of account opening – Pass the cheque.

Cheque drawn in different inks, such as blue, red, green-Pass the cheque.

Usufructuary Mortgage- In this type of mortgage the creditor (Mortgagee) is placed in

possession of the property and he is entitled to enjoy the income generated by the property

(e.g., rent) and appropriate the same towards the interest and principal of the mortgage money. In

this mortgage the physical possession is given to the mortgagee and the mortgagee can retain the

possession until the payment of mortgage money.

Mortgage by conditional sale-in a mortgage by conditional sale, the mortgagor ostensively sells

the mortgaged property, on a condition that, the sale will become absolute on a certain agreed

date if the mortgagor fails to repay the mortgage money and the sale will become void if the

money is repaid as per the terms and conditions. Sometimes, the condition would such that in

case of payment of mortgaged money as per the agreement, the buyer (Lender) will resale the

property to the seller (Borrower).

English Mortgage - is a registered mortgage by which the entire property gets transferred in

the name of the mortgagee and upon repayment of the debt on certain date appointed date, the

property will be re-conveyed to the Mortgagor.

Indian Contract Act- came into effect on 01/09/1872. Not applicable to J and K.

Section 124 –Contract of Indemnity.

Section 126-Contract of Guarantee.

Section 130 – Assigment.

Section 148-Bailment.

Section 170/171 –Lien

Section 172-Pledge (Bankers lien is an implied pledge)

Consumer Protection Act -Limitation period-2 years from the date of cause of action Jurisdiction- for claims-

Claims up to Rs 20.00 lacs -District forum

Rs.20 to 100 Lacs -State commission

Above 100 Lacs -National commission. COPRA is not applicable to J and K.

Right to Information Act- 2005- Not applicable in Jammu & Kashmir.

Fee prescribed for application is Rs.10/-. No fee is payable by person below the poverty line. The public Information Officer should furnish the information within 30 days of receipt of

application (for life or liberty of a person within 48 hours)

Penalty Rs.250/-per day maximum of Rs.25000/-.

Any person can appeal (First) within 30 days from receipt of decision or expiry period. Second

appeal can be made within 90 days from receipt of decision of first appeal or expiry.

Exemption from disclosure of information is available in terms sec 8 and for rejection as per sec9

46

Damodharan Committee- Removal on foreclosure charges on Housing Loans.

The maximum amount of ECB which can be raised by a corporate other than those in the hotel,

hospital and software sectors, and corporate in miscellaneous services sector is USD 750 million

or its equivalent during a financial year.

Corporates in the services sector viz. hotels, hospitals and software sector and miscellaneous

services sector are allowed to avail of ECB up to USD 200 million.

Zero coupon Bond: is a bond bought at rate below the face value (Discount Rate) and on

maturity the face value will be paid.

Risk weight for Housing loan sanctioned to staff members is 20%.

Green shoe option: Where the underwriter sells the shares more than the original determined by

the issuer. In simple terms it refers to Over allotment option. It provides additional price stability

Excess money supply leads to –Inflation.

Digits in IFSC-11 - IFSC-Indian Financial Sector Code.

Deposits received from public are invested in Govt. securities is called “Narrow banking”

FATF-Financial Action Task Force.

Parri Passu Charge: Security will be shared by banks in the ratio of outstanding amount.

CAMELS is the rating model done by RBI for public sector banks. C-stands for Capital Adequacy.

A-stands for Asset Quality

M-stands for Management Quality/effectiveness.

E –stands for Earnings

L-stands for liquidity.

S-sensitivity to market risk.

Factoring–Financing short term receivables.

Lok Adalat-Cases involving amount up to Rs. 20.00 lacs

47

Limited Liability Partnership

Limited Liability Partnership Act 2008. Implemented wef 09-01-2009 as per

recommendations of Naresh Chandra Committee 2003 & Irani Committee

2005.

As it is a separate legal entity, it is liable to the full extent of its assets and liability

of Partners would be limited to their agreed contribution of the LLP. Any two

persons can form LLP & there is no upper limit on the number of Partners in LLP.

LLP Act also permits Foreign Residents ( Individuals & Body Corporates ) to

became Partner in LLP in India. Change of Partners will not affect the existence,

Rights or Liability of LLP. The LLPs need Registration with Registrar of

Companies (ROC).

Net Interest Margin Net interest margin is the net interest income divided by average interest earning assets.

Nostro accounts Foreign currency settlement accounts that a bank maintains with its overseas

correspondent banks. These accounts are assets of the domestic bank.

Off-Balance Sheet

exposures

Off-Balance Sheet exposures refer to the business activities of a bank that generally

do not involve booking assets (loans) and taking deposits. Off-balance sheet

activities normally generate fees, but produce liabilities or assets that are deferred

or contingent and thus, do not appear on the institution's balance sheet until or

unless they become actual assets or liabilities.

Option An option is a contract which grants the buyer the right, but not the obligation, to

buy (call option) or sell (put option) an asset, commodity, currency or financial

instrument at an agreed rate (exercise price) on or before an agreed date (expiry or

settlement date). The buyer pays the seller an amount called the premium in

exchange for this right. This premium is the price of the option.

Risk The possibility of an outcome not occurring as expected. It can be measured and is

not the same as uncertainty, which is not measurable. In financial terms, risk refers

to the possibility of financial loss. It can be classified as credit risk, market risk and

operational risk.

Risk Weights RW is the portion of loans that is counted towards total assets against which banks

have to maintain statutory reserves. High Risk Weights discourages lending by

increasing the capital requirement for the lenders. Basel II sets out a risk-weighting

schedule for measuring the credit risk of obligors. The risk weights are linked to

ratings given to sovereigns, financial institutions and corporations by external

credit rating agencies.

Subordinated debt Refers to the status of the debt. In the event of the bankruptcy or liquidation of the

debtor, subordinated debt only has a secondary claim on repayments, after other

debt has been repaid.

Joint depositors Where the deposit has been made in the names of two or more persons, the name of

one or some of them can be deleted or substituted at the request of all the joint

depositors including the person whose name is proposed to be deleted; such deposit

shall continue till maturity without any alteration in the other original terms. At

least one of the original depositors should continue to be a depositor.

48

Where the deposits are encumbered/attached and the like, addition/deletion/

substitution should not be permitted.

In the case of deposits standing in the name of a minor, no addition of name should

be allowed. Deletion/substitution of minor's name also should not be allowed

except in the case of death of minor.

Current A/c No interest shall be paid on Current Account balances as per the Reserve Bank of

India Directive on Deposit Interest rates. However, interest at the rate allowed on

SB Account shall be paid on balances held under accounts of Regional Rural Banks

and the deceased individuals, as per SB rules. In case of minor's account, whether

self-operated or otherwise, nomination should be made by a person lawfully

entitled to act on behalf of the minor.

Joint Deposits If there are no such conditions regarding repayments the deposit shall be deemed to

be the property of all of joint holders and is repayable to all of them jointly.

Overdue Deposits No interest can be allowed for the overdue period of any term deposit if the deposit

is not renewed with effect from the date of maturity.

Other assets Other assets like Suspense debit, unadjusted items under Sundry assets,

Unreconciled debits will attracts 100% provision to be made by bank.

Approved Valuer “Approved valuer” under SARFAESI Act means a person registered as a valuer

under section 34AB of the Wealth-tax Act, 1957, and approved by the board of

directors or board of trustees of the secured creditor, as the case may be.

Unclaimed Deposit Balance in cumulative deposit accounts, which have ceased to be such deposits in

terms of the rules governing such deposits. Excess Pigmy Collections received after

maturity of the relative deposit- ‘are to be treated as 'Unclaimed Deposits'.

Banker- Customer

Relationship

Relationship between bank and customer in case of goods left by mistake in

custody of the bank- Trustee & beneficiary.

Partnership firm Partnership firm of more than 10 persons in banking business and more than 20 in

trading firm is not a legal partnership and not valid in law. Partnership Act 1932

provides registration of firm with Registrar of Firms.

All the three partners only (not a minor ) will sign the account opening form for

opening a current account in case of a partnership firm where the firm has three

partners and a minor, aged 17, has been admitted to the firm for benefits of

partnership.

Minor in

Partnership firm

Minor can be admitted to the benefit of partnership firm. At any time, six months

of the minor attaining majority or obtaining the knowledge that he has been

admitted to benefit of partnership which ever is later.

Recurring Deposit Penalty may be set off against payment of equal number of advance installments.

Date of maturity is postponed by exactly one month from the date of payment of

last installment in case

49

SCSD Senior Citizen Security Deposit . Age required above 60 years. No additional interest is payable to Sr. Citizens on the domestic term deposit of

Rs.5.00 Cr and above.

Minors

Indian Majority Act

1875 under Section

3

Until person completes 18 years is regarded as minor. However before completion

of 18 years if guardian of a person or property is appointed by a court, the minority

extends to the age of 21 years.

Old Records Banks to preserve records of Suspicious transaction for a period of minimum 10

years from date of transaction. Record of documents to be kept for minimum 10

years from date of termination of relationship.

Direct Quotation Sell high, Buy Low. Say 1 USD = Rs. 48.50 Foreign Currency is constant and Home Currency is variable.

Indirect Quotation Buy High, Sell Low . Say Rs.100. = USD 2.06 Home Currency is constant and Foreign Currency is variable.

Forward Contract A forward contract is an agreement between two parties to buy or sell an agreed

amount of a commodity or financial instrument at an agreed price, for delivery on

an agreed future date.

Hedging - Taking action to eliminate or reduce exposure to risk.

Mitra Committee Has suggested that a legal compliance certificate needs to be mandated in all

transactions. In the case of exercise of credit sanctioning powers, it is to be ensured

that all due diligence has been taken.

Bank Mergers Gangadharan Committee.

Bank Guarantee In view of the changed scenario of the Banking Industry where banks extends long

term loans for a period longer than 10 years for various projects, RBI has decided

to allow banks to issue BG for period beyond 10 years. In all other cases, banks can

issue BG up to 10 years only.

Basel Committee Basel is a beautiful place in Switzerland. The Basel Committee usually meets every

three months at the Bank for International Settlements (BIS) in Basel, where its

permanent Secretariat is located. The Bank for International Settlements (BIS) was

established in 1930.

The Basel Committee, popularly known as BCBS (Basel Committee on Banking

Supervision) was established at the end of 1974.

Basel-I Capital

Accord

Basel-I Capital Accord introduced in India in 1992-93 on recommendations of

Narasimham Committee. All commercial banks (other than RRBs) in India are

required to maintain minimum 9% capital on risk weighted assets as per RBI

guidelines.

Basel – II Accord The Basel committee issued a detailed document on capital measurement and

capital standards on 26th June 2004 known as Basel II recommendations covers

Operational Risk and residual risk in addition to credit and market risk.

Capital to Risk

Assets Ratio

This is the capital ratio, which denotes the financial soundness of the bank. It is

calculated as the ratio of capital to risk weighted assets.

50

(CRAR) It is also called as Capital Adequacy Ratio.

CRAR = capital (Tier I and Tier II capital)/total risk weighted assets x 100.

Banks are required to maintain a minimum Capital to Risk-weighted Assets Ratio

(CRAR) of 9% as per RBI guidelines.

Base Rate Deepak Mohanty ( ED of RBI) Chairman of RBI Panel to review BPLR structure,

recommended introduction of base rate system. Base rate will be new Benchmark

Rate replaces BPLR. Banks are free to charge a risk premium ( spread ) over the

base rate. However, they can not lend below the base rate.

DRI Advances, LD/ODD & Staff Loans are exempted from Base Rate application.

KYC Guidelines KYC guidelines have been issued by RBI u/s 35-A of B R Act.

Banks to keep a record of cash transactions of Rs.10 lac and above.

Under Know Your Customer guidelines of RBI, for 5 years period the records are

required to be maintained.

External rating

agencies which are

approved by RBI

For Basel II purposes, the following only four external rating agencies are approved

by RBI/SEBI.

ICRA

CRISIL - A Standard & Poor Company.

CARE

FITCH

Advances to Self

Help Groups (SHG)

Classified as Advances to the Weaker Section.

DRI Scheme Under the scheme, financial assistance is extended at concessional interest @ 4% p.a. to customers belonging to selected low income groups for productive purpose.

Now, RBI have enhanced the limit of the loan per beneficiary under DRI Scheme

from Rs.6500/- to

Rs.15000/- for general purposes and from Rs.5000/- to Rs.20000/- for housing

purpose. The ceiling on family income of the customer under the scheme is revised to Rs.

18000/-p.a. in rural areas and Rs.24000/- p.a in semi urban and urban areas.

The land holding criteria applicable to customers remains either

“landless” or “owning not more than one acre of irrigated land or not more than 2.5

acres of dry land”. Land holding criteria does not apply to SC/ST customers.

Bank is required to lend at least 1% of the previous year’s outstanding advances

under DRI scheme.

Settlement of Death

Claims

Cir.181/2007/BC

While settling the claim amount up to Rs.25,000/- branches need not insist on

production of legal heir ship certificate or any other documents from the claimants.

However, branches shall obtain proof of death and ensure that the identity of the

claimants is established to the satisfaction of branch.

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Death claims must be settled with in maximum time of 15 days from the date of

receipt of death claim. For opening the account in the name of ‘Executor’ of will, Probate is required. Probate is a Certificate issued by Court for settlement of property of deceased.

Garnishee Order The bank received garnishee order on saving bank account of Mr. A at 11.0 a.m., who deposits Rs. 40000 at 1.0 p.m. i.e. after service of the order. It may be noted that the garnishee order will not apply to this amount of Rs.40000 received after service of the garnishee order. Garnishee Order is not applicable on un-used cash credit or overdraft limit because funds available in the OD limit are not owned by the party.

“Budgetary Allocation”

“Budgetary allocation” means the allocation of funds by the Government made through the budget, wherein all the government’s expenditure is reflected. Any institution, irrespective of the fact that it is a Government Department, Semi- Government or Quasi-Government Body, which receives grants, loans or subsidies from the Government is said to depend on budgetary allocation.

Payment of interest on term deposit maturing on Sunday/holiday/non -business working day.

In respect of a term deposit maturing for payment on a Sunday or a holiday or a non-business working day, the bank should pay interest at the originally contracted rate on the deposit amount for the Sunday/holiday/non-business working day, intervening between the date of the expiry of the specified term of the deposit and the date of payment of the proceeds of the deposit on the succeeding working day.

Scheduled Bank Net demand and time liabilities should be above Rs.100.00 crores as per RBI act 1934. Schedule II.

UCPDC 600 Implemented wef 01.07.2007.Rules framed by ICC (International Chamber of Commerce) Paris, France. Total 39 Articles are there in UCPDC 600 against 49 in UCPDC 500. Reasonable time for acceptance or refusal of documents by a definite period of 5 banking days only. Under UCPDC 600, if quantity is not specified to be exceeded or reduced, it should not exceed the tolerance level of 5.00%.

N I Act Third party a/c payee cheques shall not be collected on behalf of Coop. Societies. Protection under section 131 of N I Act is available to bankers only.

Second NRW Can be availed only after 5 years from availing first NRW.

Bearer Demand Draft

Can not be issued as per section 31 of RBI Act.

Safe Custody In single name- only one nominee allowed. In Joint Name- Nomination facility not available. Use EoS facility. Relationship between Banker and Customer in case of safe custody is Bailee- Bailer.

Lockers Single Name- One Nominee Joint names EOS- Nomination not available. Joint names joint operations- one or more nominations. Safe Deposit Lockers are not available to Blind persons, Minors and Trust.

Deposit account If by mistake two nominees obtained for single deposit account, pay to both if depositor dies as per Supreme Court Judgment.

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Warehouse receipt is

Not Negotiable Instrument.

Demand Draft If original and duplicate DD presented in clearing on same day- Duplicate DD can be paid and Origional to be returned with memo-“ Duplicate since issued and paid.”

Depreciation Rates Furniture- 10% Equipments and Electrical Fittings- 15% Motor Vehicles- Bicycles - 20% Electronic Equipment & Security Gadgets -40% Depreciation on Land- Nil

Method of charging Depreciation

Written Down Value (WDV)-Fixed percentage every year Amount of depreciation decreases every year in WDV method. Straight Line Method (SLM)- Fixed amount every year. Amount of depreciation is constant every year in SLM.

Pre mature withdrawal for Joint Tax Saving Term Deposit.

The Finance Ministry has relaxed encashment norms for joint holder type term deposits under the Tax Saving Bank Term Deposit Scheme. In the event of the death of the first holder, CBDT has allowed the joint holder to encash the term deposit before its maturity. Hitherto, the scheme did not permit any encashment of term deposits before the expiry of five years.

Bankers Cheque (PO)

Is not Negotiable Instrument.

Photo of Depositor Banks should obtain photographs in deposit accounts has been recommended by : Ghosh Committee.

Minors Joint account

Two minors approach a bank to open a joint account. The account cannot be opened.

Banker’s right of set off

Can be exercised when debt must be due and in same capacity. Limitation only bars the legal remedy. However, it does not extinguish the right of set off.

Initial deposit for opening SB a/c

Initial deposit for opening SB a/c should always be in cash to get the protection u/s 131 of NI Act to the collecting banker.

If Power of Attorney holder or Director of the company reported to be deceased

Cheques drawn by them prior to death must be paid.

Cheques made payable like pay to cash or order

Can be paid in cash only to the drawer.

Crossed cheques Cash should not be paid over the counter for crossed cheques except to the bankers.

Lien Right to retain goods and securities in the normal course of business.

Negative Lien Is an undertaking given by the borrower not to sell, mortgage or otherwise encumber any particular property or assets with out prior consent of the bank.

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Pre-mature Renewal of Term Deposit

Deposit should be continued to be held for a longer period than the remaining period of the original contract after allowing pre mature renewal of deposit.

Ship – Security creation

Ship which is registered in India with Registrar of Shipping can be Mortgaged under Merchant Shipping Act.

Advances against Shares

No advance against security of partly paid shares. Advances against primary security of shares should not be granted to Proprietary Concerns, Partnership Firms and HUF.

Registering of our charges with ROC in case of advances to the companies.

In case of Pledge of shares & Govt. Securities and Pledge of Goods, our charges need not be required to be registered with ROC.

Death Claims Maximum 15 days time limit given for the banks to settle the claims in respect of a deceased depositor and release payments to the survivors/nominees.

Red Clause LC Which provides for advance payment to beneficiary prior to shipment of goods for purchasing raw material, processing and packing purpose.

NOSTRO A/C A/c maintained by a domestic bank with foreign bank in foreign currency. Our a/c with you.

VOSTRO A/C A/c maintained foreign bank in inland bank in local currency. You’re a/c with us.

Revaluation of currency

Increase in external value of currency.

Devaluation of currency

Reduction in external value of currency.

Loan on LIC Policy No loans to be granted against Money Back Policy, an LIC policy u/s 6 of Married Women's Property Act. Preferred policy for granting loans is Endowment Policy.

Minor Widow Girl The natural guardian of a minor widow girl is father and after father's death, her mother.

QMD Overdraft facility up to 80% of the deposit.

Assignment When Debt is in the form of Actionable claim, the charge applicable is Assignment.

Certificate of commencement of business

Is required only in case of Public Ltd Company. But as per new Companies Bill 2012, required for all the companies.

Muslim depositors request not to pay interest on their deposits as Mohammedan Law prohibits receipt of interest.

No interest free deposit can be accepted other than by way of current account. Try to convince the Muslim depositor to invest the amount in the current account where no interest is payable.

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General Ledger Book, Indemnity Bonds and Claim files.

Are to be preserved permanently. It is permanent record.

Death of Trustee Branch shall act according to the provisions made in this regard in the trust deed. Cheque signed by the trustee can be paid.

If there is dispute between Nominee and legal heirs regarding payment of deposit after death of depositor...

Pay to nominee only and obtain valid discharge from nominee. Legal heirs may be advised to approach court of Law to solve the dispute.

Basel III Guidelines Basel III measures aim to: improve the banking sector's ability to absorb shocks arising from financial and economic stress, whatever the source improve risk

management and governance strengthen banks' transparency and disclosures.

The final guidelines on Basel III capital regulations would become effective from April 1, 2013 in a phased manner. Implementation of the capital adequacy guidelines on the Basel III capital regulations will began on 01-April-2013.

The Basel III capital ratios will be fully implemented as on March 31, 2018. Capital Conservation Buffer: Another key feature of Basel III is that now banks will be required to hold a capital conservation buffer of 2.5%.

Take out Finance Under this arrangement, the bank financing the infrastructure projects will have an arrangement with any financial institution for transferring to the latter the outstanding in respect of such financing in their books on a pre determined basis.

RAM software for credit rating by our Bank is

A product of CRISIL, Credit Rating Information Services of India Ltd.

Student going abroad for education purpose.

Is also treated as NRI .

Chelliah Committee Chelliah Committee of 1992 deals with the overhauling of our Tax System.

Revalidation of DD Can be done only once. Request of drawee can be considered

If Rs.10 lac HL is sanctioned, how much capital we have to provide?

Housing Loan Sanctioned-Rs.10.00 lacs Say 50% Risk Weightage - Rs.5.00 lacs Capital Adequacy at 9% 5,00,000 x 9 = 45,000/- capital is to be maintained.

100 (This is only example)

Maximum Spread Presently the maximum spread stipulated by the Bank over the Base Rate, is 5.25% p.a. in respect of advances to Agriculture, Micro & Small Enterprises and 6.75% p.a. on all other advances.

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DRT / SARFAESI If a borrower wants to file an appeal with DRAT against the decision of DRT under SARFAESI Act, 50% amount it will be required to deposit.

If a borrower wants to file an appeal with DRAT against the decision of DRT under DRT Act, 75% amount it will be required to deposit.

Kite Flying Kite Flying is a bill is drawn without consideration by seller of goods on buyer of goods.

Minimum Interest Minimum Interest: Interest shall be collected for a minimum period of 7 days if the loan/OD is closed within 7 days subject to a minimum of Rs.10.00. However, this rule is not applicable in the case of following transactions: a) LD/ODD. d) BG/DGP/LC paid accounts. b) Drawing against clearing effects. e) Export Finance. c) Debit balance in SB and Current Accounts.

Open Interest Open Interest - In derivative trading open interest or OI Is the total number of outstanding futures or options contracts in a market at a given point of time.

Immediate Credit of outstation cheques.

Up to Rs.15000/-

HUF The liability of a minor co-parcener in an HUF, for the acts of a Karta is to the extent of his share in the family property.

Missing Person RBI has issued directives on 12.05.2008. As per section 107/108 of Indian Evidence Act, if any person is missing continuously for 7 years, he can be declared as Dead and claim can be settled accordingly. First FIR must be lodged and if person is not traceable with in 7 yrs, relatives of the missing person can approach Court and obtain order to that effect for settlement of their claim. In respect of borrower, bankers can lodge FIR not as missing but Absconding because after words borrower can not plead as he has not received notice or he has not been informed.

Introduction Introducer is liable only if account holder is impersonate.

Clayton’s Rule Right of Appropriation. Appropriation of payments

SARFAESI Act 15 days time period under SARFAESI Act for replying to borrower if he raises objection for possession of Assets.

FX Transactions Basic buying rate is TT buying rate.

Negative lien Loans granted on the basis of Negative Lien are treated as a) Secured b) Unsecured c) Partly Secured d) None.

Ans - is b)

De- Duplication De- Duplication-Clubbing of many customer IDs of same customer into one single ID.

Documentation Charges

Not to be collected in respect of Agriculture Advances.

Counterfeit notes Counterfeit notes should be preserved for a period of 3 years from the date of receipt from the police authorities.

Counterfeit notes may thereafter be sent to concerned issue office of RBI with full details.

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Counterfeit notes which are subject matter of litigation in the court of law, should be preserved with the branch concerned for three years after conclusion of court case.

Investment Fluctuation Reserve

Investment fluctuation reserve would be classified by a banks as Tier I capital fund for the purpose of capital adequacy ratio.

Allonge’ refers to `allonge’ refers to A plain sheet appended to a negotiable instrument for the purpose of making endorsement thereon.

Issue DDs, MTs and TTs

Banks to issue DDs, MTs and TTs for Rs.50000 and above only by debit to customers' account and not by accepting cash.

Documentation Loan agreement is executed but it is not stamped properly- It can be stamped later on after payment of penalty as per provision of respective State Stamp Acts and can be treated as a valid document, after obtaining permission of the collector of stamps.

Articles of Association.

Borrowing power of Board of Directors is described in Articles of Association.

Usufructuary mortgage

Mortgagee enjoys the income of the mortgaged property in case of Usufructuary mortgage.

Off Balance Sheet Exposures

Aggregate domestic off balance sheet exposures including forward contacts and derivatives of the bank shall not exceed 12 times the capital funds of the bank.

Vetting of Documents

In case of fresh credit limits of Rs.1.00 crore and above, branches shall forward copies of the documents executed by the borrowers/guarantors to ROs for vetting.

Minority Community

Jain Community is now classified as Minority Community.

CDR system As per the CDR system introduced by RBI, problem borrowal accounts under multiple banking/syndication/consortium arrangement with outstanding fund based and non fund based exposure of Rs.10 crore and above can be considered for restructuring subject to fulfillment of the norms laid down.

Sweat Equity Sweat Equity is a new equity instrument which was floated in the Companies (Amendment) ordinance 1998 (u/s 79A of the companies act 1956. It refers to the shares issued at discount to the employees and directors and shares issued for consideration other that cash for providing intellectual property rights, know how , value additions to the company or similar contributions.

Banking Ombudsman

Customer can file his complaint before the Banking Ombudsman if the reply is not received from the bank within a period of one month. The complaint should, however, be made before expiry of period of one year after the cause of action has arisen.

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If the award is acceptable to the complainant, he is required to send to the bank

concerned, a letter of acceptance of the award in full and final settlement of his complaint, within a period of 15 days from the date of receipt of the copy of the award by him.

The appellate authority is the Deputy Governor in the Reserve Bank of India.

Either party aggrieved by the award may, within 45 days of the date of receipt of the award, appeal against the award before the appellate authority. The appellate authority may, if he is satisfied that the applicant had sufficient cause for not making an application for appeal within time, also allow a further period not exceeding 30 days.

CRISIL CRISIL's leadership position continues with over a 70% share of the Indian ratings market.

CRISIL's majority shareholder is Standard & Poor's, the world's foremost provider of independent credit ratings, indices, risk evaluation, investment research and data.

ICRA ICRA Limited (formerly Investment Information and Credit Rating Agency of India Limited) was set up in 1991 by leading financial/investment institutions, commercial banks and financial services companies as an independent and professional Investment Information and Credit Rating Agency. The international Credit Rating Agency Moody’s Investors Service is ICRA’s largest shareholder. ICRA and its subsidiaries together form the ICRA Group of Companies (Group ICRA). ICRA is a Public Limited Company, with its shares listed on the Bombay Stock Exchange and the National Stock Exchange.

FITCH Fitch Ratings is a global rating agency committed to providing the world's credit markets with independent and prospective credit opinions, research, and data.

Fitch Ratings is headquartered in New York and London and is part of the Fitch Group.

CARE Credit Analysis & Research Ltd. (CARE Ratings) is a full service rating company that offers a wide range of rating and grading services across sectors. CARE has an unparallel depth of expertise. CARE Ratings methodologies are in line with the best international practices. CARE was promoted by major Banks/FIs (financial institutions) in India. The three largest shareholders of CARE are IDBI Bank, Canara Bank and State Bank of India.

CIBIL The Credit Information Companies (Regulation) Act, 2005, and various Rules and Regulations issued by Reserve Bank of India has empowered CIBIL or (Credit Information Bureau (India) Ltd to collect the data from various types of credit

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grantors (i.e. lenders). and then share the same within the group. The legislation

has enabled banks to submit data to CIBIL without obtaining borrower consent. This has enabled CIBIL to tracks repayment history of bank customers loans, credit cards and further banking finances. The access to this database is usually available only to officials of banks.

At present CIBIL is maintaining the database of Suit-Filed accounts of Rs.1 Crore and above and Suit-Filed accounts (willful defaulters) of Rs. 25 Lacs and above. The establishment of CIBIL is an effort made by the Government of India and the Reserve Bank of India to improve the functionality and stability of the Indian financial system by containing NPAs while improving credit grantors’ portfolio quality. CIBIL provides a vital service, which allows its Members to make informed, objective and faster credit decisions.

State Bank of India (SBI), Housing Development Finance Corporation Limited (HDFC), Dun & Bradstreet Information Services India Private Limited (D&B) and TransUnion International Inc. (TransUnion) signed Shareholders’ Agreement on January 30, 2001, with a view to establish the Credit Information Bureau (India) Limited (CIBIL). D&B and TransUnion, are also the technology partners and are well-known in the credit information businesses worldwide.

Consumer Protection Act

Establishment of consumer disputes redressal forum at district level, state level and central levels known as “District Forum”, “State Commission” and “National Commission”.

Court. District forum, State Commission or National Commission shall not entertain any appeal filed after expiry of 2 years from the date on which the cause of action has arisen. However, the forums have the power to condone the delay in preferring appeals within such time limit if sufficient cause is shown for not filing the appeal within the prescribed time limit. What is “sufficient cause” will depend on the facts and circumstances of every particular case.

There is no fee for filing a complaint before the District Forum, the State Commission or the National Commission.

Senior Citizens The cap on term deposits of Senior Citizens for getting the benefit of additional interest of 0.50% will stand revised upward from less than Rs.1 crore’ to ‘less than Rs.5 crore’.

Additional interest of 0.50% is not payable to Senior Citizens on domestic Term Deposits of Rs.5 crore & above & minimum period of one year.

Minority Community

GOI/RBI has set up a target of 15% State wise Minority Community lending under over all Priority Sector Lending. Maximum Loan limit is not exceeding Rs.1.00 lacs per borrower & Rate of Interest shall be minus 0.50% of applicable rate subject to the minimum of Base Rate.

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Education Loan Interest Subsidy Scheme would be available to loans disbursed on or after 01.04.2009 (Amount sanctioned earlier but released after 01.04.2009 also to be covered). Income criteria specified under the scheme for EWS is Rs.4.50 lacs p. a. decided by Ministry of HRD.

Canara Bank has been nominated as Nodal Bank for implementation by Ministry of HRD, GoI.

Debit Balance in CA/SB

Interest at Base Rate plus 6.75% from the date of allowing debit balance up to the stipulated period of 30 days for SB and 15 days for current accounts and overdue interest shall be added thereafter.

Banking Frauds 200-2012-BC

A) Rs.3.00 Crore & above but below 15.00 Crore: Where staff involvement is prima facie evident: Report to CBI (Anti Corruption Branch)

Where staff involvement is prima facie not evident: Report to CBI Economic Offences Wing)

B) Rs.15.00 Crore and above:

Report to Banking Securities and Fraud Cell of the respective centre, which is the specialized cell of the Economic Offences Wing of the CBI, for major bank fraud cases.

C) Less than Rs.3.00 Crore:

Report to Local police / State police. Fraud cases to be referred to local police: Cases with amount involved less than 3.00 Crore. 1. Cases of financial frauds with value of 1.00 lakh and above which involve outsiders (private parties) and bank staff, should be reported by the Regional Head of the Bank to a senior officer of the State CID/Economic Offences Wing of the concerned state. 2. For cases of financial fraud below the value of 1.00 lakh but above 10,000, the cases should be reported to the local police by the Bank branch concerned. 3. All fraud cases of value below 10,000, involving bank staff should be referred to the Regional Head of the Bank, who would scrutinize each case and then direct the Bank branch concerned on whether it should be reported to the local police for further action.

Penal Interest For credit limits not exceeding Rs.5000/- in case of general advances and not exceeding Rs.25,000/- in case of priority sector advances penal interest for non submission/delayed submission of stock statement, non submission/delayed submission of renewal proposal and non submission/delayed submission of CCR Forms shall not be charged.

Small Savings Schemes

Interest rate on PPF has been decreased to 8.7% while a 10 year NSCs will fetch 8.8% & 5 year NSCs will fetch 8.5% . The new rates will be effective from April 1, 2013 and no change in the savings deposit rate which has been retained at 4%.

In line with the recommendations of Shyamala Gopinath Committee, which had suggested that returns should be in sync with market rates. Earlier, the government had raised annual investment ceiling in PPF savings to Rs 1 lakh from Rs 70,000.

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White-Label ATM Most automated teller machines (ATMs), or machines that dispense cash, are owned by banks. But ones that are owned and operated by non-banking companies are called while-label ATMs (WLAs). They function just the same way as any other bank-run ATM.

Cross Selling Cross selling means offering more than one product to each customer. Cross selling is just not product offering. It is building of relationship.

Cross selling can be for liability as well as asset products. Cross selling reduces operational cost besides other benefits.

Restructured Accounts

As per recent RBI Guidelines banks should henceforth disclose in their published Annual Balance Sheets, under "Notes on Accounts", information relating to number and amount of advances restructured, and the amount of diminution in the fair value of the restructured advances.

Exposure to capital market

The aggregate exposure of the bank to the capital markets in all forms (both fund based and non fund based) should not exceed 40 per cent of its net worth as on March 31 of the previous year.

Hot Money Money that is moved by its owner quickly from one form of investment to another, as to take advantage of changing international exchange rates or gain high short- term returns on investments.

Recovery Pension cannot be attached in execution of decree. If Judgment Debtor has gross salary of Rs.10,000/-, maximum amount of attachment is Rs.3,000/-. During auction of attached property, Bank can bid with the permission of the court.

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Present Position - -

Bank Rate - Rate at which RBI purchases or rediscounts bills of exchange of commercial banks.

7.75%

SLR- 21.50% wef 07.02.2015

CRR- is the percentage of deposit that banks must keep as cash with RBI. By reducing CRR, RBI infuses liquidity in the Banking system.

4.00% wef 09.02.2013 Rate of interest payable by RBI on CRR balances – Nil.

Repo Rate- this is the rate at which RBI adds fund to money market.

6.75%

Reverse Repo Rate- this is the rate at which the RBI absorbs fund from money market.

5.75%

Base Rate of our bank 9.70% wef 01.10.2015

SB Interest Rate- Wef 01.04.2010, SB interest payable on daily balances on half yearly basis. i-e Sep & March.

4.00% wef 03.05.2011. SB Interest Rate deregulated by RBI from 25.10.2011.

Marginal Standing Facility (MSF) -7.75% Banks permitted to avail themselves of funds from the Reserve Bank on overnight basis under Marginal Standing Facility (MSF), against their excess SLR holdings.

Base Rates concept is Introduced as per directions of RBI, in order to bring the transparency in the pricing of lending products.

Pricing = Base Rate + Risk Premium (Spread) Or PLR + Risk Premium (Spread)

PLR at 13.95% wef 01.10.2015 Cost of funds + operational expenses + provisions + capital charge + spread

Base Rate implemented (wef 01.07.2010) Bank can not lend below Base Rate.

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Priority Sector Advances -

Categories under priority sector- (i) Agriculture (ii) Micro, Small and Medium Enterprises (iii) Export Credit (iv) Education (v) Housing (vi) Social Infrastructure (vii) Renewable Energy (viii) Others

Agriculture sector is now classified into following 3 sub-sectors (which was hitherto classified as Direct and Indirect Agriculture) i) Farm Credit ii) Agriculture Infrastructure and iii) Ancillary activities.

Farmers with landholding of up to 1 hectare are considered as Marginal Farmers. Farmers with a landholding of more than 1 hectare and upto 2 hectares are considered as Small

Farmers.

Small and Marginal Farmers: A target of 8 percent of ANBC or Credit equivalent amount of Off-Balance Sheet Exposure, whichever is higher, has been prescribed for Small and Marginal Farmers within agriculture

Construction of storage facilities/Cold Storage Units: Loans for construction of storage facilities (warehouses, market yards, godowns and silos) including Cold Storage Units/Cold Storage chains designed to store agriculture produce/products, irrespective of their location up to 100 Crores will form part of Agriculture.

Medium Enterprises, Social Infrastructure and Renewable Energy will form part of Priority sector.

Sr. No. Category Targets 1 Total Priority

Sector 40 percent of Adjusted Net Bank Credit [(ANBC) defined in sub paragraph (iii)] or Credit Equivalent Amount of Off- Balance Sheet Exposure, whichever is higher.

2 Agriculture 18 percent of ANBC or Credit Equivalent Amount of Off- Balance Sheet Exposure, whichever is higher. Within the 18 percent target for agriculture, a target of 8 percent of ANBC or Credit Equivalent Amount of Off- Balance Sheet Exposure, whichever is higher is prescribed for Small and Marginal Farmers, to be achieved in a phased manner i.e., 7 per cent by March 2016 and 8 per cent by March 2017.

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3 Micro Enterprises

7.5 percent of ANBC or Credit Equivalent Amount of Off- Balance Sheet Exposure, whichever is higher to be achieved in a phased manner i.e. 7 per cent by March 2016 and 7.5 per cent by March 2017.

4 Advances to Weaker Sections

10 percent of ANBC or Credit Equivalent Amount of Off- Balance Sheet Exposure, whichever is higher.

5 DRI Advances 1.0% of previous year‘s total credit

6 Advances to women beneficiaries

5.0% of Adjusted Net Bank Credit

Priority Sector Advances-

-The Export Credit extended as per the details below would be classified as priority sector. Incremental export credit over Corresponding date of the preceding year, up to 2 percent of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher, effective from April 1, 2015 subject to a sanctioned limit of 25 crore per borrower to units having turnover of up to 100 crore.

-Loans to individuals for educational purposes including vocational courses up to 10 lakh irrespective of the sanctioned amount will be considered as eligible for priority sector.

-Loans to individuals up to 28 lakh in metropolitan centres (with population of ten lakh and above) and loans up to 20 lakh in other centres for purchase/construction of a dwelling unit per family provided the overall cost of the dwelling unit in the metropolitan centre and at other centres should not exceed 35 lakh and 25 lakh respectively. The housing loans to banks‟ own employees will be excluded. As housing loans which are backed by long term bonds are exempted from ANBC, banks should either include such housing loans to individuals up to 28 lakh in metropolitan centres and 20 lakh in other centres under priority sector or take benefit of exemption from ANBC, but not both.

Loans for repairs to damaged dwelling units of families up to 5 lakh in metropolitan centres and up to 2 lakh in other centres will be considered as eligible for priority sector.

Bank loans to any governmental agency for construction of dwelling units or for slum clearance and rehabilitation of slum dwellers subject to a ceiling of 10 lakh per dwelling unit will be considered as eligible for priority sector.

The loans sanctioned by banks for housing projects exclusively for the purpose of construction of houses for economically weaker sections and low income groups, the total cost of which does not exceed 10 lakh per dwelling unit. For the purpose of identifying the economically weaker sections and low income groups, the family income limit of 2 lakh per annum, irrespective of the location, is prescribed.

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Bank loans to Housing Finance Companies (HFCs), approved by NHB for their refinance, for on-lending for the purpose of purchase/construction/reconstruction of individual dwelling units or for slum clearance and rehabilitation of slum dwellers, subject to an aggregate loan limit of 10 lakh per borrower. The eligibility under priority sector loans to HFCs is restricted to five percent of the individual bank‟s total priority sector lending, on an ongoing basis.

Outstanding deposits with NHB on account of priority sector shortfall will be considered as eligible for priority sector.

Social infrastructure-Bank loans up to a limit of 5 crore per borrower for building social infrastructure activities namely schools, health care facilities, drinking water facilities and sanitation facilities in Tier II to Tier VI centres will be considered as eligible for priority sector.

Renewable Energy -Bank loans up to a limit of 15 crore to borrowers for purposes like solar based power generators, biomass based power generators, wind mills, micro-hydel plants and for non-conventional energy based public utilities viz. street lighting systems, and remote village electrification. For individual households, the loan limit will be 10 lakh per borrower.

Others -Overdrafts extended by banks up to 5,000/- under Pradhan Mantri Jan-DhanYojana (PMJDY) accounts provided the borrowers household annual income does not exceed 100,000/- for rural areas and 1,60,000/- for non-rural areas will be considered as eligible for priority sector.

WEAKER SECTIONS – Priority sector loans to the following borrowers will be considered under Weaker Sections category:

1. Small and Marginal Farmers

2. Artisans, village and cottage industries where individual credit limits do not Exceed Rs. 1 lakh

3. Beneficiaries under Government Sponsored Schemes such as National Rural Livelihoods Mission (NRLM), National Urban Livelihood Mission (NULM) and Self Employment Scheme for Rehabilitation of Manual Scavengers (SRMS)

4. Scheduled Castes and Scheduled Tribes

5. Beneficiaries of Differential Rate of Interest (DRI) scheme 6. Self Help Groups

7. Distressed farmers indebted to non-institutional lenders

8. Distressed persons other than farmers, with loan amount not exceeding 1 lakh per borrower to prepay their debt to non-institutional lenders

9. Individual women beneficiaries up to 1 lakh per borrower 10. Persons with disabilities

11. Overdrafts upto 5,000/- under Pradhan Mantri Jan-DhanYojana (PMJDY) accounts, provided the borrowers‟ household annual income does not exceed 100,000/- for rural areas and 1,60,000/- for non-rural areas

12. Minority communities as may be notified by Government of India from time to time

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Time Limit for disposal of Loan Applications- All loan applications up to a credit limit of 25,000/- should be disposed of within a fortnight and those for over 25,000, within 8 to 9 weeks.

All loan applications for Micro and Small Enterprises up to a credit limit of 25,000/- should be disposed of within 2 weeks, above 25,000/- to 5.00 lakh within 4 weeks and above 5 lakh within 8 to 9 weeks, provided the loan applications are complete in all respects and are accompanied by a 'check list'.

In the case of proposals from SC/ST, rejection should be at a level higher than that of Branch Manager.

No education loan is to be rejected by the Branch Managers without concurrence of next higher authority.

No penal interest should be charged for loans under priority sector upto 25,000/-. No loan related and adhoc service charges / inspection charges shall be charged on priority sector loans up to 25,000/-.

No processing charges to be levied for Micro and Small Enterprises for loans upto 5.00 lakh.

Loans extended to Micro, Small and Medium Enterprises(MSME) as per the definition under manufacturing sector irrespective of the loan amount shall be treated as priority sector.

Loans upto 5.00 crore per borrower / unit to Micro and Small Enterprises and 10.00 crores to Medium Enterprises engaged in providing or rendering of services and defined in terms of investment in equipment under MSMED Act 2006 are eligible to be classified under Priority Sector.

Short fall if any in meeting the target under PSA or Agriculture Advances to be deposited in Rural Infrastructure Development Fund RIDF (NABARD) by the banks.

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Balance sheet Analysis- (With solved problems).

Standard format of the balance sheet to be remembered for solving the various problems related to Balance Sheet Analysis.

Sources of Fund Liabilities Assets Uses of Fund

Long term sources of fund

Capital Fixed Assets Investment or NCA

Long term uses of fund

Reserves

Term Liability (B)

Current Assets ( D) Short term uses of funds Short term sources of

fund Current Liability (C)

Total Liabilities Total Assets

Current Assets can be created out of short term sources and partly out of long term sources of funds.

TOTAL ASSETS = TOTAL LIABILITIES ( always use while solving problems )

Current Ratio = Current Assets Please refer to D in the above balance sheet Current Liability C

Gross Working Capital = Current Assets ( D)

Net Working Capital = Current Assets - Current Liability = D - C= NWC

Capital + Reserves = Own Funds or Net worth

Capital + Reserves less intangibles = Tangible Net worth =A

Debt Equity Ratio = Long Term Debts = B Tangible Net Worth A

Total Outside liabilities = Term Liability (B) + Current Liability (C)

TOL/TNW = Total Outside liabilities = Term Liability (B) + Current Liability (C)

Tangible Net Worth Tangible Net Worth (A)

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DSCR Denotes repaying capacity of the borrower can be calculated as follows. Net Profit + Depreciation + Interest on term loan Term loan installments + Interest on term loan How Term Loan is to be serviced out of projected cash flow of the company.

Debt Equity Ratio Denotes Promoters contribution or Margin in the project Long Term Debts

DER = Tangible Net Worth

Break Even Point Where there is no profit and no loss. Beyond this point unit starts earning profits.

Cash Loss Cash Loss is loss before depreciation

Net Loss Net Loss is loss after depreciation

Cash generation is Net profit plus depreciation

Intangible Assets Goodwill, preliminary expenses, earlier period losses.

Working Capital Gap Current Assets less Current liabilities excluding bank borrowings.

Pre paid expenses-- Outstanding Charges--

-- Classified as Current Asset (CA) -- Current Liability (CL)

Pre-operative or Preliminary expenses

Classified as Intangible assets or Factitious Assets

Contingent liabilities are shown in the balance sheet as

Foot note to the balance sheet. Contingent liabilities are not part of balance sheet. Acceptances, endorsements and guarantees are shown as contingent liabilities.

Accumulated losses are appearing in the balance sheet of the company as

Assets Side of the Balance Sheet of the company.

If Bonus shares are issued by the company, which of the following ratio will be changed.

Current Ratio. 2) Solvency Ratio. 3) DSCR 4) Debt Equity Ratio 5) None

Answer- 5) None.

Bonus shares are issued out of accumulated Reserves and not from Revaluation Reserves.

Current Ratio implies : Liquidity position. Capacity of the firm to repay or liquidate the current liabilities.

Margin requirement on second hand machinery.

40% For Medium Enterprises. However, margin at 30% in case of Micro & Small Enterprises.

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C R is 3:1 & CA is 30, that means CL is 10. As Quick Ratio is 1:1, Quick Assets are also 10 lacs only.

Current ratio of a unit is 3:1 and quick ratio is 1:1. The level of current assets is Rs.30 lac. What is the amount of quick assets? Current Liabilities are common here. Answer is Rs.10.00 Lacs. ( it means stock of Rs.20 lacs)

Balance sheet analysis If DER is 2:1, CL are 40 and Total Assets are 100, what are the Term Liabilities? 1) 80 2) 60 3) 40 4) 20 5) None Ans- 3)

Calculation of TNW (Take only paid up capital)

Authorised capital is Rs.10 lac, issued capital is Rs.8.00 lacs and Paid up capital Rs.6 lac. The loss of previous year is Rs.1 lac. Loss in current year is Rs.2 lac. The tangible networth is : = 6 - (1+2 )= Rs.3 lacs .

NWC = CA-CL Suppose Current Ratio is 4:1 & Current Assets are 40000, what is NWC?

As CR is 4:1 and CA is 40000, CL can be 10000 NWC = CA-CL i-e 40000( - ) 10000 = 30,000.

Current Ratio What should be the current ratio if NWC is Nil Current ratio will be 1:1 i-e Current assets equals to Current Liabilities. Therefore CA less CL = 0

Net working capital is Rs.80000. Current ratio is 3:1. The current assets are ?

CA-CL=80000 & CA/CL=3 i-e CA=3 CL

3CL- CL = 80000 i-e 2CL = 80000 & CL = 40000 When CA=3CL, CA= 3 x 40000 = 1,20,000

If the net worth of the business is Rs.500, fixed assets are Rs. 500, current assets Rs.300, investments Rs.300, current liabilities Rs. Nil, what is the amount of claim to outsiders?

Total Assets= FA 500+ CA 300 + Investment 300 =1100 Total Liabilities=500 + CL nil + amount of claim to outsiders = 1100 Therefore , answer is 600. Please broadly remember. Assets = FA + CA + NCA (Investment) + Accumulated Lossess if any. Liability = Capital + Reserves + TL + CL & Provisions

Cash profit is equal to Net profit before Depreciation.

Break Even Point Total Fixed Cost Unit sale price – Unit variable cost .

Example of BEP A manufacturer sells his product at Rs.30 each. Fixed cost is Rs. 5000 and the variable cost is Rs.10 each. Calculate the Break Even Point.

5000 = 5000 = 250 30-10 20

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Equity Share Capital Is permanent source of finance.

Negative NWC Means current liabilities are more than current assets.

Quasi Capital Funds infused by Directors/Share holders/Relatives of long term nature can be considered as part of Net Worth if the same is not withdrawable during the tenure of loan.

Investment in partly paid Shares is to be considered as Contingent Liability.

IRR Internal Rate of Return is that discount rate at which project Net Present Value (NPV) is zero.

Goodwill Is intangible asset as per Indian Accounting Standards.

Live stock Is fixed asset for the company.

Gold is treated as Investment whereas Silver is treated as other assets.

Present value Future amount Multiplied by Discount Factor.

Yield to Maturity (YTM) is that discount rate at which all future cash flows equal to present market value.

Overvaluing the inventory Window dressing of current ratio is possible by this mode.

Projected Turn Over Method for Assessment of Working Capital

Working capital requirement of MSE units up to Rs.5.00 crores = 20% of projected turnover. Please refer 336/2014/BC.

Holistic Method It is a Simplified method in case of a borrowers seeking fund based working capital limits of less than Rs.25 lakh Working capital requirement = 125% of value of security.

Regulatory Exposure Ceiling

15% of Bank’s Capital for single borrower and 40% for group borrowers.

Long Term uses = Fixed Assets.FA+CA=40&FA=22, i-e CA=18 & as CR is 1.50, CL can be worked out = 12

The balance sheet of a firm has shown total assets of Rs.40 lacs. The long term uses are Rs.22 lacs and the current ratio is 1.5:1. What is the amount of current liabilities? Answer is Rs.12.00 lacs.

Dividend are usually paid on Paid up capital of the company.

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Solvency Certificate Should be issued only to the extent of Tangible Net Worth of Individual or Organization.

Please try to solve this problem by using balance sheet format ( by totaling assets & liability side). However, answer is given for cross checking.

Mr. A commenced his business on 1st April, 2009 with Capital of Rs.1,00,000. He did good business during the year and

earned handsome profit. At the end of 31st March, 2010, his financial position was: Fixed Assets Rs.1, 20,000 and bank balance of Rs.33000 and Creditors Rs. 17000. What was his net profit for the year 09-10? Net Profit for the year 2009-10 was Rs.36,000/-

A new company cannot issue shares----- at discount.

Quick Ratio = CA-Stock CL

350–Stock =1.50, 200

Therefore Stock = 50

A firm has quick ratio of 1.5:1 with current liabilities at Rs.200.00. It’s current assets being Rs.350, what will be the amount of stocks/inventories if there are no prepaid expenses or loans or advances in the current assets. (Answer is 50)

What does a high current ratio with low quick ratio indicate?

More of stock.Quick Ratio = C A-Stock & C R = CA CL CL

Disproportionately high investment in stocks.

Debt equity ratio is 2:1 and owned funds is Rs.4 lacs. Amount of total assets is Rs.20 lacs. What is the current ratio if the fixed assets are of Rs.8 lacs?

Total Assets =20 = FA 8 + CA, therefore CA = 12

Total liabilities =20 as Assets equal to Liabilities as above.

Own funds are 4 and debt is double the amount of own funds .

Total liabilities =20 = 4 + 8 + CL , therefore CL= 8

Current Ratio = CA/CL= 12/8 = 1.50:1.

Depreciation A fixed portion of fixed assets is written off every year by way of Depreciation.

Maximum permissible Bank Finance (MPBF)

The Tandon Working Group introduced the concept.

Current Assets High Current Assets couples with low quick ratio is an indicator of High Inventory. Very high current ratio also indicates position of more long term funds than required.

Book Debts Realization of Book Debts will not affect current ratio of the company. Book Debts are only converted in to cash & cash is also classified as current asset.

Bonus Shares If bonus shares issued by the company, its TNW & DER will not change.

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Hypothecation is defined in

Section 2 of SARFAESI Act. Possession with the borrower and ownership with bank. Hypothecation can be converted in to pledge.

Mortgage Defined in Section 58 of Transfer of Property Act.

Pledge Defined in Section 172 of Contract Act. Bailment of goods is Pledge. Possession as well as ownership with the Bank.

Lien Defined in Section 171 of Contract Act

Bailment Defined in Section 148 of Contract Act

Indemnity Defined in Section 124 of Contract Act

Guarantee Defined in Section 126 of Contract Act

Negotiable Instrument Act- 1881

Section 26 regarding minors Section 85 protection to paying bankers Section 131 protection to collecting bankers Section 138 bouncing of cheques Section 25 declaration of holidays under NI Act by State Govt.

Consumer Protection Act 1986

Quasi –Judicial Authority to provide speedy and simple redressal to consumer dispute.

Time barred debt can be revived

As per section 25 (3) of Indian Contract Act after obtaining ASD-19 along with ASD-1(DPN).

Under stamped DPN, AOD and Usance Bill of Exchange

Can not be ratified as per Indian Stamp Act 1899. They are invalid if they are under stamped.

Cash Reserve Ratio (CRR)

Maintained with RBI as per Section 42 of RBI Act 1934. Interest payable on CRR balances- Nil.

Statutory Liquidity Ratio (SLR)

Maintained with RBI as per section 24 of Banking Regulation Act 1949. Cash in hand is counted for SLR.

Stapling of currency notes

RBI has prohibited stapling of currency notes by a directive issued under Section 35 A of B R Act.1949.

Nomination defined In Section 45 Z of Banking Regulation Act 1949.

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Sec 19(2) of Banking Regulation Act-1949.

Banks cannot hold shares in a company beyond 30% of company's paid-up capital or 30% of bank's paid-up capital plus reserves whichever is less.

Section 20(1) of BR Act 1949

Section 20(1) of BR Act, banks cannot grant loans against its own shares.

Garnishee Order is issued under

Civil Procedure Code.

Right to issue currency notes

u/s section 22 of RBI Act 1934

Minors defined u/s 3 of Indian Majority Act 1875 18 years , court defined 21 years

Branch License Banking Regulation Act 1949 u/s 22 allows RBI to issue of license for banks.

Under Bankers Book Evidence Act

The terms ‘ Judge’ refers to ‘ Judge of High Court’

DRT Bank employee committed fraud resulting in recovery of Rs.20.00 lacs. The amount is not treated as ‘ Debt’ and recovery through the DRT is not possible.

Registration Act,1908

As per the provisions of the Registration Act,1908, a registered document operates, not from the date of its registration , but from the time of its execution. Thus a Mortgage document executed earlier, though registered later than another, has priority over the documents executed later.

Mortgages The limitation period for filing a suit for sale of mortgaged property is 12 years from the date the mortgage debt becomes due.

The limitation period for filing suit for foreclosure is 30 years from the date the money secured by mortgage becomes due.

Unclaimed Deposit As per the provisions of the Banking Regulation Act, a banking company to file within 30 days of the close of each financial year a return of unclaimed deposits.

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Tractor Loan Estimated yearly use (EOU) should be minimum 1000 hours, then only tractor loan proposal can be considered as economically viable. Tractor Loan is repayable in Minimum 5 years and maximum 9 years.

Poultry Farming Debecking and layer farming (production of eggs) terms are used. Broilers used for meat purpose and Layers for egg production.

Minor Irrigation White area- water utilized below 65% - Go ahead for financing.

(New Wells) Gray area- water utilized 65-85 % - caution for financing. Dark area- water utilized above 85% - no finance to be granted.

200 Meter Minimum distance between two dug wells to be maintained and verified while financing to new dug wells.

Crop Loan/ SKCC Scale of finance for Crop Loan/ SKCC is decided by District Consultative Committee (DCC) which is also called District Technical Committee.

Lactation period ( Milking)

Cow-300 days Buffeloes-280 days.

Dry days Cow-60 days Buffeloes-120 days.

Breeds of Cow Exotic Breeds-Holstein, Brownswiss,Jersy. Indigenous Breeds- Tharparkar, Gir, Sahiwal, Red Sindhi.

Breeds of Buffaloes Mehsana, Jafarabadi,Pandharpuri,Surati, Nagpuri and Murrah, Bhadwari.

CACP Commission for Agricultural Cost and Pricing declares minimum support prices of agri commodities and Central Govt. procures agri commodities at MSP.

Produce Marketing Loan Scheme

Repayable in period not exceeding 12 months. No Limit but for classification of PSA, Loans up to Rs.50 Lacs are eligible.

Gobar Gas Produces “Methane” gas.

Apiculture Apiculture relates to : Bee-keeping

Sericulture Silk Production. Cultivation of Silk worms is called Sericulture.

Power Tiller One Power Tiller can replace at least 8 pairs of work animals.

LAMPS Large Sized Multipurpose Primary Society.

NABARD National Agricultural Bank for Rural Development. Has celebrated recently its Silver Jubilee.

UNIT Cost Region wise Unit costs in respect of Agriculture and allied activities (except crop loan/ SKCC) are approved by NABARD.

Mixed Farming Mixed Farming means Undertaking cultivation and allied activities.

Agariculture Agariculture is the study of herbs.

Small farmer Small farmer is one , who has land holding above 1.25 acres with maximum of 2.5 acres in irrigated area or above 2.5 acres with maximum 5.00 acres in non irrigated area.

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Marginal Farmer Marginal Farmer is one who has land holding upto 1.25 acres in irrigated area or 2.5 acres in non irrigated area.

Power Tiller Estimated yearly use (EOU) should be minimum 600 hours, then only power tiller loan proposal can be considered as economically viable.

Vermiculture Rearing of earth worms for preparing organic manure from farm waste.

Organifarming Farming without use of pesticides and chemicals and by using organic inputs such as bio fertilizers.

Gobar Gas Maximum size 25 cubic meter. Requires cow dung of 450 kg. Minimum size 2 cubic meter. Requires cow dung of 40 kg. Proportion of dung and water should be 4:5.

Agricultural Advance Loans to small and marginal farmers for purchase of land for agricultural purposes is to be classified as Direct Agricultural Advance .

BIS Standards For financing a pump set, BIS standards will be taken into account

No Dues Certificate No dues certificate in case of agricultural advances is exempted up to a loan of Rs.50000/-

Parameters While processing big Agri proposals, following parameters shall be complied with.

Benefit – Cost Ratio should be more than one. IRR should be more than lending rate. Net Present Value should be positive.

SKCC No Maximum limit & valid for 5 years.

T M Bhasin Working Group on Electronic Kisan Credit Cards- T M Bhasin.

Jatropha In recent times Jatropha (Jatropha curcas L.) has received much attention as a source of renewable oil for the production of sustainable and affordable bio-fuels.

Shivraman Committee On the recommendation of committee was NABARD established

Financial Inclusion ‘Swabhiman’, the financial inclusion scheme, comes under the purview of Finance Ministry.

Food Grains Food Grain production estimated by Ministry of Agriculture for FY 2014-15 - 257.10 Million Tones.

CFMTTI The Central Farm Machinery Training and Testing Institute (CFMTTI), Budni, M.P issues test certificate for various makes of the tractor. The maximum repayment period is 9 yrs as the usual life of a tractor is 10,000 hrs.

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Important Agriculture activities-

1)Aquaculture- Shrimp/Prawn farming 2)Apriculture- Mushroom cultivation 3)Apiculture- Bee keeping 4)Floriculture- Flower production 5)Horticulture- vegetable,fruits,flowers 6)Olericulture- Vegetable production 7)Moriculture- Mulberry cultivation 8)Pisciculture- Fish farming 9)Sylviculture- Forest tree cultivation

10)Vermiculture- Rearing of Earthworm 11)Sericulture- Silk Production 12)Tissue Culture- Plant propagation

Important Revolutions in India:

1) Blue- Fish production 2)Green- Food production 3)Red- Meat production 4)Yellow- Oil seeds production 5)Black- Rubber production 6)Brown- Cocoa production 7)Rainbow- Flower production 8)White- Milk production

Ground Water Availability:

a) White Blocks- exploitation of ground water is less than 66% of the available water. b) Grey Blocks - 66% to 85% of the available water has already been exploited.

c) Dark Blocks – More than 85% of the available water is already over-exploited. Spacing norms for wells :

a) Between two dug wells – 180 meters b) Between two dug wells with pump sets – 180 meters c) Between two bore wells with pump sets –250 meters

d) Between a dug well and a bore well –215 meters SELF HELP GROUPs: Recommended by Kalia Committee.

-A voluntary association of 10-20 persons with common interest to improve their economic and social status. The minimum number of members in an SHG may be reduced to 5 in case of difficult areas, disabled persons and minor irrigation schemes. The concept of weaker sections was evolved by Ghosh Committee. A bank will be eligible for 100% refinance by NABARD. Concept of Self Help Groups originated from Bangladesh.

Service Area Approach had been recommended by the Ojha Committee in 1989. Now it is applicable to Government sponsored schemes only.

PRODUCE MARKETING LOAN –

Objective: To help farmers avoid distress sale of their produce. To offer the facility of loan against the stocks stored in farm houses, in addition to loan against warehouse receipts.

Eligibility: Farmers who have availed crop production loans from the branch or from other Bank or who have not availed crop loan from any Bank.

Loan up to Rs.50.00 lac given to the eligible farmer can be classified as “ Agriculture Finance” under Priority Sector Advance.

JOINT LIABILITY GROUPS OF TENANT FARMERS (JLG) –

Objectives: To augment flow of credit to tenant farmers cultivating land either as oral lessees or sharecroppers and small farmers who do not have proper title of their land holding through formation and financing of JLGs. An informal group compromising preferably 4 to 10 individuals (may be considered upto 20) engaged in similar economic activity like crop production, coming together for purpose of availing bank loan either singly or through group mechanism against mutual guarantee. Purpose of loan: crop production, consumption, marketing and other productive needs.

Syndicate Kisan Credit Card-

a)SKCC limit Up to Rs.2.00 lakh- a) Hypothecation of crops b) Charge on land wherever State acts provide for creation of charge on lands c) Third party guarantee need not be insisted

b)SKCC limit above Rs.2.00 lakh- a) Hypothecation of crops b) Mortgage of land c) Third party guarantee need not be insisted

c)SKCC limit Up to 3.00 lakh, in case of tie-up arrangements (with sugar factory, Tobacco Board etc)

a) Hypothecation of crops b) No mortgage of land c) Third party guarantee acceptable to the Bank

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While granting limits under SKCC, the scale of finance, is prepared by District Level Technical Committee (DLTC)

While granting limits under SKCC, the scale of finance, is approved by District Consultative Committee

While financing SKCC/Crop Loan by adopting scale of finance (SOF) no separate margins are required.

Agriculture Contributes to around 14% percent of the GDP providing employment to nearly 60 percent of the population

Agriculture sector is now classified into following 3 sub-sectors (which was hitherto classified as Direct and Indirect Agriculture)

i) Farm Credit ii) Agriculture Infrastructure and iii) Ancillary activities.

Foreign Exchange-

Holiday: Holidaying abroad may require spending in foreign currency for hotel accommodation, tour arrangements, shopping, etc. Under this category, an individual is allowed to draw foreign exchange up to $10,000 in a year for one or more private visits abroad.

Business trip: If you are going abroad for business travel, attending conference or specialised training, you can apply to your bank for release of foreign exchange up to $25,000.

Employment: RBI has allowed drawing foreign exchange up to $100,000 for taking up employment abroad.

Education: You can draw up to $100,000 equivalent per academic year for studying abroad. Studying abroad covers all expenses relating to education including admission fee, tuition fee and purchase of study material. However, if you require funds in excess of $100,000, you need to produce an estimate from the institute you intend to study to the concerned bank.

Medical treatment: An individual willing to travel abroad for getting medical treatment is allowed to withdraw foreign exchange up to $100,000 based on self-declaration of essential details without providing any estimate from a doctor or hospital. However, if the individual wishes to take money over the prescribed limit, s/he will have to provide an estimate from a hospital or doctor. In addition, a maintenance expense of up to $25,000 is allowed.

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Emigration facilities: RBI has allowed drawal of foreign exchange for emigration facilities up to $100,000 based on self-declaration or an amount prescribed by the country of emigration.

Liberalised Remittance Scheme (LRS): In addition to these limits there is a scheme known as Liberalised Remittance Scheme in force since 2004 which allows resident individuals to draw foreign exchange up to a specified limit. The remittance limits under LRS keep changing and under the present limit an individual can draw up to $250,000 per year for the transaction permissible under the scheme. Under this scheme, an individual can freely acquire and hold shares, debentures, units of mutual funds, venture capital funds, unrated debt securities, promissory notes or any other instrument of like nature. Further, the resident can invest in such securities out of the bank account opened abroad under the Scheme. He can also set up a company, enter into joint venture or buy immovable properties abroad provided the law of the host country allows such transactions. Apart from the above, this scheme allows an individual to make remittance as gift or loan to his relative abroad who is a non-resident Indian i.e. an Indian Citizen who resides outside India. Further, where an individual has availed of a loan at a time when he was non-resident, he can take the benefit of this scheme to make remittance for repayment of loans.

Exchange Earners' Foreign Currency Account (EEFC): The balance in this account represents earnings in foreign exchange and can be utilised towards current and capital account transactions like private visits, business visits, purchase of property, and payment of custom duty. There is no restriction on withdrawal in rupees of funds held in an EEFC account. However, the amount withdrawn in rupees shall not be eligible for conversion into foreign currency and for re-credit to the account.

Resident Foreign Currency Account: An individual can open, hold and maintain with a bank in India a Foreign Currency Account, known as a Resident Foreign Currency (RFC) Account, out of foreign exchange received as pension, gift, proceeds from sale of property outside India, maturity proceeds of insurance policy, etc. The funds in this account are free from all restrictions towards utilisation including investments.

Resident Foreign Currency (Domestic) Account: Resident individuals have another option by opening and operating an account with a bank known as Resident Foreign Currency (Domestic) Account. The credits in this account are allowed to be out of foreign exchange acquired in the form of currency notes, bank notes and travellers' cheques while on a visit to any place outside India by way of payment for services, gift from close relatives or unspent amount of foreign exchange acquired for travel abroad. The balance held in this account can be utilised for permissible current and capital account transactions like private visits, business visits, and purchase of property.

Documentation: RBI has not prescribed any documents except self-declaration satisfying the banker that the foreign exchange will be utilised only for the transaction for which request to the banker for the release of foreign exchange is made and Form A2.

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Current Financial Awareness - Key Features of Budget 2015-2016-

GDP growth in 2015-16, projected to be between 8 to 8.5%. Financial Inclusion - 12.5 crores families financially mainstreamed in 100 days.

CPI inflation projected at 5% by the end of the year, consequently, easing of monetary policy

Housing for all - 2 crore houses in Urban areas and 4 crore houses in Rural areas

Electrification of the remaining 20,000 villages including off-grid Solar Power- by 2020

To make India, the manufacturing hub of the World through Skill India and the Make in India Programmes.

Government firm on journey to achieve fiscal target of 3% of GDP. Rs.25,000 crore in 2015-16 to the corpus of Rural Infrastructure Development Fund (RIDF) set up in NABARD.

Target of Rs.8.5 lakh crore of Agricultural Credit during the year 2015-16. Micro Units Development Refinance Agency (MUDRA) Bank, with a corpus of Rs.20,000 crores, and credit guarantee corpus of Rs.3,000 crores to be created.

NBFCs registered with RBI and having asset size of Rs.500 crore and above may be considered for notifications as ‘Financial Institution’ in terms of the SARFAESI Act, 2002.

Pradhan Mantri Suraksha Bima Yojna to cover accidental death risk of Rs.2 Lakh for a premium of just Rs.12 per year.

Pradhan Mantri Jeevan Jyoti Bima Yojana to cover both natural and accidental death risk of Rs.2 lakh at premium of Rs.330 per year for the age group of 18-50.

Atal Pension Yojana to provide a defined pension, depending on the contribution and the period of contribution. Government to contribute 50% of the beneficiaries’ premium limited to Rs.1,000 each year, for five years, in the new accounts opened before 31st December 2015.

National Investment and Infrastructure Fund (NIIF), to be established with an annual flow of Rs.20,000 crores to it.

Forward Markets commission ( now attached to Fin Ministry) to be merged with SEBI.

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Foreign Trade Policy (FTP)-2015 to 2020-

-Increase exports to $900 billion by 2019-20, from $466 billion in 2013-14.

-Raise India's share in world exports from 2% to 3.5%.

-Merchandise Export from India Scheme (MEIS) and Service Exports from India Scheme (SEIS) launched.

-Higher level of rewards under MEIS for export items with High domestic content and value addition.

-Incentives extended to units located in SEZs.

-Export obligation under EPCG scheme reduced to 75% to promote domestic capital goods manufacturing.

-FTP to be aligned to Make in India, Digital India and Skills India initiatives.

-Duty credit scrips made freely transferable and usable for payment of custom duty, excise duty and service tax.

-Export promotion mission to take on board State Governments

-Unlike annual reviews, FTP will be reviewed after two-and-Half years.

-Higher level of support for export of defence, farm Produce and eco-friendly products.

Income Tax – Normal Rates of tax: FY 2015-16 (AY 2016-17)

1. Where the total income does not exceed Rs. 2,50,000/-.

Nil

2. Where the total income exceeds Rs. 2,50,000/- but does not exceed Rs. 5,00,000/-.

10 per cent of the amount by which the total income exceeds Rs. 2,50,000/-

3. Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-.

Rs. 25,000/- plus 20 per cent of the amount by which the total income exceeds Rs. 5,00,000/-.

4. Where the total income exceeds Rs. 10,00,000/-.

Rs. 1,25,000/- plus 30 per cent of the amount by which the total income exceeds Rs. 10,00,000/-

Rates of tax for every individual, resident in India, who is of the age of sixty years or more but less than eighty years at any time during the financial year: Where the total income does not exceed

Rs. 3,00,000/- -Nil. In case of every individual being a resident in India, who is of the age of eighty years or more at any time during the financial year- Where the total income does not exceed Rs. 5,00,000/- -Nil

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Education Cess on Income Tax at the rate of three percent of the income-tax.

Section 80C, entitles an employee to deductions for the whole of amounts paid or deposited in the current financial year in the schemes such as insurance, PF, etc, subject to a limit of Rs.1,50,000/-.

Senior citizen” means an individual resident in India who is of the age of sixty years or more at any time during the relevant previous year.

Very (Super) senior citizen means an individual resident in India who is of the age of eighty years or more at any time during the relevant previous year .

REBATE OF Rs 2000 FOR INDIVIDUALS HAVING TOTAL INCOME UPTO Rs 5 LAKH [SECTION 87A]

Commercial Banking in India.-

History Commercial Banking in India.

First in Banking First India bank Got ISO : Canara Bank First Governor of RBI : Mr. Osborne Smith First Indian governor of RBI : Mr. C D Deshmukh First Bank to Introduce ATM in India : HSBC First Bank to introduce savings : Presidency bank in 1833 First Bank to Introduce Cheque system : Bengal Bank 1784 First Bank to introduce Internet Banking : ICICI BANK First Bank to introduce Mutual Fund : State Bank of India First Bank to introduce Credit Card : Central Bank of India First Bank Set Up in India : Bank of Hindustan in 1770 First Joint Stock Bank of British India : State Bank of India First Joint Stock Bank of India : Allahabad Bank First Bank that is oldest Public Sector Bank in India : Allahabad Bank First national bank that is merged with Punjab National Bank : New Bank of India in 1993. First Indian bank to open branch outside India in London in 1946 : Bank of India. First Regional Rural Bank name Prathama Grameen Bank - Was started by : Syndicate Bank. First Bank to launch branch in foreign was "Bank of India" in 1946 in London UK. First bank to Introduce Credit card in India was Central Bank of India With "Central Card" 1980. First Bank to introduce Debit Card in India was Citi Bank In Bangalore in 1987 . The first bank to be given an ISO 9002 certificate for one of its branches -- Canara Bank.

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RBI Classification of Area applicable to Branches

Population Population Group

0-10,000 Rural

10,000-1,00000 Semi-Urban

1,00000-10,00,000 Urban

Above 10,00,000 Metropolitan

Nachiket Mor RBI Panel for Comprehensive Financial Services- Banking Services to all by Jan 2016. Recommended for Priority Sector Credit to enhanced from 40%.

About our Syndicate Bank – 20.10.1925.

Syndicate Bank is the first nationalized bank to implement the Core Banking Solution (CBS) in our country.

SyndBank Services Ltd incorporated on 25.01.2006 with Authorised Capital of Rs.10 crores and its paid up capital as on 31-03-2009 was Rs.25 lacs.

Syndicate Bank is the first public sector bank who opened first RBB in India named “Pathama Grameen Bank” in Moradabad District (U P ) on 02-10-1975.Presently, 3 RRBs –Prathama Bank, Karnataka Vikas Grameena Bank and Andhra Pragathi Grameena Bank under our banks sponsorship. All are profit making having total business of Rs.42101 crore with 1348 branches.

SyndNavaratna’ Savings Account has been launched for improving its CASA base. The product caters well for the salaried class employed with MNCs/Blue chip companies/reputed private organizations/Government and semi-government undertakings

E-Lounge/Self Banking Facilities like Pass Book Printing, Internet Banking, ATM, Self Serviced Kiosk for Cash and Cheque Deposit etc are being extended at select centers.

Bank had signed a Memorandum of Understanding (MOU) with M/s SBI Life Insurance Co. Ltd. on 30th March 2015 for providing Group Life Insurance cover to Education Loan Borrowers of the Bank.

Bank has a Corporate Agency tie-up with M/s TATA-AIA Life Insurance Co Ltd. on 30th March 2015 for providing Group Life Insurance cover to Housing Loan borrowers of the Bank on optional basis.

Bank had signed a Memorandum of Understanding (MOU) with LIC for implementation of “Pradhan Mantri Jeevan Jyoti Bima Yojana”. In this, LIC will provide life insurance cover of Rs. 2 lakh in case of death of the insured person at nominal premium of Rs. 330 per annum.

SyndGuide - a mobile app for everyone to know about bank's products & services, interest rates, Branch locator etc.

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Synd Connect: Bank has launched a new personal banking loan product “SyndConnect” to meet loan requirements of employees of Central /State Government Departments, reputed Public Sector Undertakings and “Fortune 500” Companies.

Synd Delight: Bank has launched a hassle free loan product “SyndDelight” to existing Housing Loan customers, who have demonstrated satisfactory repayment record of 3 years or more, to meet any of their genuine personal credit needs.

Our Bank has been conferred with the highest “Rajbhasha Keerti Puraskar” for the year 2014-

15 among other Nationalized Banks and Financial Institutions in Region ‘C’ for effective implementation of Official Language Policy.

Syndicate Bank won SKOCH ORDER -OF-MERIT & SKOCH AWARD 2015 for Synd ePassbook. SSGVY- ( Synd Samagra Gramya Vikash Yojana)

Performance of our Bank as on 31.03.2015- Particulars 31.03.2015

Global Business increased to Rs.4,61,192 Crores. Rs.4,61,192 Crore.

Provision Coverage Ratio at 66.61% 66.61%

Operating Profit up by 12.46%. 12.46% Net Profit at Rs.1,523 Crores Rs.1,523 Crore

CRAR (as per Basel III) at 10.54%. 10.54%. Global NIM : 2.38%. 2.38%.

Gross NPA 3.13% Net NPA 1.90% Gross NPA Rs.6442 Crore Net NPA Rs.3844 Crore Yield on Investments 8.09%

Gross Investments Rs.69558 Crore Global deposits Rs.255388 Crore

Global Advances Rs.205804 Crore

Cost of Deposits 6.73% Yield on Advances 9.34%

Return on Assets 0.58%

Regulatory Total Capital Rs.16,891 Cr

Earnings Per Share Rs.24.38

Book Value Per Share Rs.197.24

Govt. of India- Equity holding 69.24% Share Capital Rs.662.06 Cr

Branches opened during FY 2014 – 15 303

Total branches as on 31.03.2015 3552 Capital Adequacy Ratio (Basel II) (%) 10.92% Return on Equity (ROE) stood at 13.30% 13.30%

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All about Scheduled Commercial Banks-

Sr. No. Particulars Details 1 Total Number of Scheduled Commercial Banks 148

Out of which Regional Rural Banks(RRBs) 56

2 Total branches of Scheduled Commercial Banks in India as

on 31.03.2015

1,25,863 (100%)

Out of which-Rural Branches 48033 (38%) Out of which-Semi Urban Branches 33523 (27%) Out of which- Urban Branches 23522 (19%) Out of which- Metro Branches 20785 (16% ) 3 Performance of Scheduled Commercial Banks in India as

on 31.03.2015

Credit Deposit (CD) Ratio 77.40% Growth in Aggregate Deposit 10.70% Growth in Gross Bank Credit 9.80% Highest Growth in Aggregate Deposit in Rural area 15.70% Highest Growth in Gross Bank Credit in Rural area 14.70% Lowest Growth in Aggregate Deposit in Metro area 7.70% Lowest Growth in Gross Bank Credit in Metro area 8.50% 4 Performance of Nationalized Banks in India as on

31.03.2015

Growth in Aggregate Deposit 7.58% Growth in Gross Bank Credit 7.80%

5 Performance of Private Sector Banks in India as on

31.03.2015

Growth in Aggregate Deposit 16.80% Growth in Gross Bank Credit 18.60

6 Performance of Foreign Banks in India as on 31.03.2015

Growth in Aggregate Deposit 14.10% Growth in Gross Bank Credit 11.00%

BANKS – PUNCHLINES -

1. Allahabad Bank – A tradition of trust 2. Andhra Bank – For all your needs 3. Bank of Baroda – India‘s International Bank 4. Bank of Maharashtra – One family one bank 5. Bank of India – Relationship beyond banking 6. Canara Bank – Together we can 7. Central Bank Of India – Build a better life around us 8. Corporation Bank – Prosperity for all 9. Dena Bank – Trusted Family Bank 10. Indian Bank – Your tech friendly Bank 11. Indian Overseas Bank – Good people to grow with

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The Reserve Bank of India Governor, Dr. Raghuram Rajan has been conferred with the Central Banker of the Year Award (Global and Asia Pacific) for 2016 by The Banker, a monthly publication of the Financial Times Group focusing on banking. The Central Banker of the Year 2016 awards celebrate the officials that have best managed to stimulate growth and stabilize their economy.

Global Private Banking Awards 2015 – Best Private Bank In India- Kotak Wealth Management.

Best Global Private Bank 2015 - UBS Wealth Management.

Forbes India Leadership Award 2015 -Arundhati Bhattacharya, State Bank of India -Best CEO of Public Sector.

Finance Minister of independent India was R. K.Shanmukham Chetty, who also presented its

first Budget. Present Finance Minister of India is -Arun Jaitley.

12. Oriental Bank of Commerce – Where every individual is committed 13. Punjab National Bank – The name you can bank upon 14. Punjab and Sind Bank – To strive to achieve excellence in customer service 15. Syndicate Bank – Faithful and friendly 16. United Commercial Bank – Honours your trust 17. Union Bank of India – Good people to bank with 18. United Bank of India – The bank that begins with ―Uǁ 19. Vijaya Bank – A friend you can bank on 20. State Bank of India – With you all the way 21. State Bank of Hyderabad – Modern Innovative dependable 22. State Bank of Mysore – Working for a better tomorrow 23. State Bank of Patiala – Blending modernity with tradition 24. State Bank of Travancore – Since 1945 – a long tradition of trust 25. ICICI Bank – Hum Hai Na 26. IDBI Bank – Banking for all 27. HSBC bank – World‘s local bank 28. HDFC Bank – We understand your world 29. Bank of Rajasthan – Together we prosper 30. Federal Bank – Your perfect Banking partner 31. Yes Bank – Experience our expertise 32. Jammu and Kashmir Bank – Serving to empower 33. Lakshmi Vilas Bank Limited – The changing face of prosperity 34. Karur Vysya Bank – Smart way to Bank 35. Deutshe Bank – A passion to perform 36. South Indian Bank Limited – Experience Next Generation Banking

Current Financial Awareness-

Angus Deaton of Scotland -Nobel Memorial Prize in Economic Sciences 2015

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IBA Chairman- Shri Ashwani Kumar : Dena Bank

Upendra Kumar (U K ) Sinha is the present chairman of SEBI.

Jim Yong Kim, is the President of the World Bank .

IMF Managing Director-Christine Lagarde.

Takehiko Nakao- President/Chairman of Asian Development Bank (ADB)

The latest government estimate, released, the figure of total food-grain production during 2014- 15 crop year (July-June period) at 257.10 million tonnes (MT) which is lower than the last year's record food-grain production of 265.60 MT in 2013-14.

Saving Rate % of GDP 30.60% for 2013-14-For 2014-15 figures not available at present.

Capital formation rate 32.30% for 2013-14- For 2014-15 figures not available at present.

Per Capita Net National Income Rs.88533 (At current market prices) for 2014-15 as per advance estimates. Rs.80388/- for 2013-14.

India’s share in world exports is about - 2%. Vice Chairman of NITI Ayog - Mr. Arvind Pangariya.

Payment Banks- 1) The minimum paid-up capital requirement for payments banks is Rs. 100 crore. 2) As per the guidelines, the promoters' initial minimum contribution will be at least 40 % of the minimum capital, to be locked in for a period of 5 years. 3) Payments banks will have to invest in government securities with a maturity of up to one year. 4)Payments banks will be used only for transaction and deposits purposes. Unlike small banks, payments banks cannot lend money. 5) Payments banks can open small savings accounts and accept deposits of up to Rs.1 lakh per individual customer and provide remittance services. Hence, the balance at the close of business on any day should not exceed Rs.1 lakh per customer.

The Government of India has accepted the recommendation of the 14th Finance Commission which was headed by Dr. Y.V. Reddy. The share of states in the centre's tax revenue is increased from 32% to 42%.Chairman – Dr. Y.V. Reddy (former Governor of Reserve Bank of India)

The Asian Development Bank (ADB) projected India's growth rate to 7.8 per cent in 2015-16. It also forecast India's growth rate would be 8.2 percent in 2016-17.

Reliance partnered with SBI (State Bank of India) for Payment Bank Licence. RIL will be the promoter and SBI will be the joint venture partner with equity investment of up to 30%.

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Fiscal deficit Fiscal deficit means the government’s total expenditure (excluding the money it’s borrowed) exceeds its revenue.

Budget deficit Budget deficit is normally known as national debt. A country’s fiscal deficit is usually calculated as a percentage of its gross domestic product. Gross domestic product (GDP) means the market value of all the finished goods produced or services rendered within the domestic boundary of the country excluding imports occur within a defined territory.

Reasons of Fiscal Deficit

-Subsidy on rising crude oil import along with increasing global oil prices.

-Demand for gold has contributed to weaken the rupee rate against $ which makes the import costlier & thereby increasing the subsidy burden resulting widen fiscal deficit.

-Fertilizer subsidy.

-Increase in government expenditure towards unproductive areas like interest payment cost.

-Higher fiscal deficit leads to higher level of inflation in the economy especially in Indian economy as compared to other developed nations like U.S.

-Due to high fiscal deficit & lower growth, there’s always a risk of downward rating by global rating agencies.

Minority Community Jain community is now included in Minority community.

Bangaluru City- Wifi IT capital Bangalore has become the first Indian city to provide free wifi services to its citizens. The state government initiative 'Namma wifi' covers 5 crucial locations in the city and aims to be extended to other areas in the coming months as well.

Bharat Mobile Scheme

The name given to a newly announced scheme under which a free mobile handset will be provided to one member of every rural household who has completed 100 days of work under MGNREGA.

Special National Investment Fund (SNIF)

Union Govt. on 2 August 2013 gave its approval for setting up of a fund to help six PSUs, to make them compliant with the 10% minimum public holding norm of market regulator SEBI. Six sick PSUs which will be covered under this proposed fund are – HMT, ITI, Scooters India Limited, Andrew Yule, Fertilizer and Chemical Limited (Travancore) and Hindustan Photo Films Limited.

Arundhati Bhattacharya

She is appointed as the first woman Managing Director (MD) of State Bank of India (SBI) on 3 August 2013.

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Raghuram Rajan Raghuram Rajan has been appointed as the 23 rd Governor of the Reserve Bank of India (RBI) who was the Chief Economic Advisor to the Govt. of India.

M-Pesa Telecommunication major Vodafone has recently launched a unique money transfer and payment service “M-Pesa” in Bihar and Jharkhand where banking network and financial penetration is inadequate, particularly in rural areas. ICICI Bank is the banking partner of Vodafone in this service.

Bharatiya Mahila Bank

Bharatiya Mahila Bank is the India’s first women’s bank. With an initial capital of Rs.1,000 crore, this bank would provide dedicated financial services to women in general and women self-help groups (SHGs). Which was world’s first women’s bank? – Pakistan’s First Women Bank (FWB), which was established in 1989.

Tax Administration Reform Commission (TARC),

Parthasarathy Shome is heading the seven- member Tax Administration Reform Commission (TARC), which was constituted by the Union Govt. on 26 August, 2013 to have a comprehensive review of existing tax laws and suggest a stable tax administration.

Cheraman Financial Services Limited (CFSL),

Cheraman Financial Services Limited (CFSL), became the first Islamic financial services company to be launched in India, started its operations in Kerala state recently

IIM, Kashipur This IIM of the country recently launched a first-of-its-kind management development programme on Islamic Banking and Finance.

Nishi Vasudeva Nishi Vasudeva’s name came to news when she was selected by the Public Enterprises Selection Board (PESB) to head a Navratna category PSU and thus is on the way to become the first- ever woman to head a Navratna PSU. She is expected to take over as the Chairman and Managing Director of Hindustan Petroleum Corporation Ltd (HPCL) in March, 2014.

LIC Nomura Mutual Fund

Mutual fund company recently launched an auto premium payment system in collaboration with Life Insurance Corporation to enable its mutual fund investors to pay their insurance premium.

Brown Label' ATM Brown label ATMs are those Automated Teller Machines where hardware and the lease of the ATM machine is owned by a service provider, but cash management and connectivity to banking networks is provided by a sponsor bank whose brand is used on the ATM.

Deepak Sandhu Has become India’s first Woman Chief Information Commissioner.

Swarn Jayanti Rojgar Yojana

Swarozgar Yojana & Swarn Jayanti Rojgar Yojana comes under which department – Ministry of Rural Development (GraminVikas Mantralaya)

Govt. of Maharashtra During August 2013 Maharashtra became the first state of the country to disburse employees’ salary through Aadhaar-linked bank accounts. Employees of Information Technology (IT) Department. of Maharashtra Govt. were disbursed their salaries through Aadhaar mode.

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Delhi State Delhi State on 20 August, 2013 became the first state to launch the food security scheme for its citizens.

Top Companies in India

Top companies in India by market capitalization – TCS

Top companies in India by net profit- Reliance Industries.

Top companies in India by net sales- IOC- Indian Oil. LPG Cylinders The Union Cabinet has approved raising the quota of subsidised LPG

(cooking gas) to 12 cylinders per household in a year from current nine wef 01.02.2014.

RBI Approval Prior approval of Reserve Bank is required for acquisition of 5 per cent or more of shares or voting rights in a banking company by any person.

“Small Company” Under Companies Act 2013

‘‘small company’’ means a company, other than a public company,— (i) paid-up share capital of which does not exceed fifty lakh rupees or such higher amount as may be prescribed which shall not be more than five crore rupees; or

(ii) turnover of which as per its last profit and loss account does not exceed two crore rupees or such higher amount as may be prescribed which shall not be more than twenty crore rupees:

For qualifying as a small company, it is enough if either the capital is less than rupees fifty lakhs or turnover is less than rupees twenty crores. It is sufficient if either one of the requirement is met without meeting the other requirement. However, these limits may be raised but not exceeding rupees five crores in case of capital and rupees twenty crores in case of turnover. Only a private company can be classified as a small company.

Kisan Diwas Kisan Diwas - observed in India on 23rd December.

Chairman of NABARD

Chairman of NABARD – Dr. Harsh Kumar Bhanwal

Insurance Sector The Finance Ministry on 14 August, 2013 announced that public sector insurance company LIC can increase its investments in companies up to 25% under special circumstances as against present investment limit of 20%.

CRR If RBI reduces CRR than what happens—Credit Supply increases.

NIM Net interest margin (NIM) = Net Interest Income / Total Assets.

Doha Bank RBI has recently given license to Doha Bank to start its banking operations in India & permitted to open branch in Mumbai.

Justice Sodhi Committee

Justice Sodhi Committee on Insider Trading Regulations is appointed by SEBI.

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Inflation Indexed Saving Bonds

RBI has launched an Inflation Indexed Saving Bonds that offers protection to Retail Investors from price rise.

Trustee & Beneficiary Relationship between bank and customer in case of goods left by mistake in custody of the bank is “ Trustee & beneficiary”.

Charge on Shares For obtaining loan against shares, the Charge created on shares is Lien.

Govt. Shareholding Govt. shareholding in public sector banks cannot be below : 51%

Selling of NPA To sell an NPA, the account must remain in the books of seller bank : for 24 months as NPA.

Self Help Group The no. of members in a SHG in SGSY in normal cases : 10 to 20

Axis Bank Axis Bank launched co-branded credit card that offers a blend of insurance and a number of travel benefits for international frequent flyers, available in 2 versions, viz. World Select and World.

The Bank International Indonesia (BII)

The Bank International Indonesia (BII) launched its operations in India by opening a branch in Mumbai.

Basel III Indian banks would need Rs 3,90,000-5,00,000 crore capital over the next six years in the wake of Basel III capital regulations announced by the RBI.

Andhra Pradesh Grameena Vikas Bank

Andhra Pradesh Grameena Vikas Bank (APGVB) has opened about 1.5 lakh no-frills accounts in eight districts of the State on a single day as part of Direct Benefit Transfer (DBT) initiative.

ICICI Bank ICICI Bank Ltd, India’s largest private sector bank, has launched ICICI Bank Carbon in partnership with Visa.

ED of Bharatiya Mahila Bank

Smt. S M Swathi

Chairman of 7th Pay Commission

Justice Ashok Kumar Mathur.

CEO of Microsoft India born, Mr. Satya Nadella

MICR Code 9 Digit Number

RTGS/NEFT Code 11 Digit Number

Aadhar Card Code 12 Digit Number

EPFO The Employees Provident Fund Organization has decided to raise interest rate on PF deposits for 2013-14 to 8.75%.

IDRBT, Hyderabad The Banking Technology Excellence awards were instituted by Institute for Development and Research in Banking Technology (IDRBT) Hyderabad.

Unclaimed Dividend After 7 years, the companies are required to transfer the amount of unclaimed dividend to the Investor Education and Protection Fund (IEPF) of the Ministry of Corporate Affairs (MCA).

CACP Commission for Agricultural Cost & Prices

Intersol Charges Charges levied by the banks to cover the cost of extending services to customers by using the CBS/Internet/Intranet platform.

Women a/c Only 30% of women in India have a bank account.

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ATM PIN-4 Digit ATM PIN is mandatory wef 01.12.2013 while you shop with card. Card transactions are more secure & frauds can be avoided.

e-insurance Wef 01.04.2014, all sold insurance policy documents will become digital and paperless.

KYC Penalties RBI will now be able to slap penalty of Rs.1 crore on banks if they breach a single norm. If more than one norm is breached then the fine will be multiples of Rs.1 crore.

Average Growth Average growth during last ten years was at 7.50%

External Debt India’s external debt is about 20% of GDP.

B N Shrikrishna Head of Financial Sector Legislation Reforms Commission

New Pvt Sector Banks Minimum Paid up Ccapital-Rs.500 crores. Promoters should be “Fit & Proper” with 10 years of successful track record. 25% branches in unbanked rural area. Cap on foreign investment at 49%. Bimal Jalan to head panel on New Bank Licenses.

Manipal to Manipur Syndicate Bank opened 3001st branch opened at Imphal in Manipur

Rajat Gupta Former Goldman Sach Director convicted for insider trading.

New all Womens Bank

Bhartiya Mahila Bank- Head Quarters at New Delhi

Bulk Deposit Over Rs.1 crores constitutes bulk deposit

Bulk Deposit Cap 15% of total deposits

Bitcoin Bitcoin is virtual currency or digital currency. Internationally recognized currency code for Bitcoins is BTC. 1 Bitcoin is divided in to smaller units called Satoshis. Ripal, LightCoin, MasterCoin ,NXT & DojCoin are digital currencies. In India “Laxmicoin“ is e-currency.

JET - HDFC HDFC launched India’s first premier debit card named as “Jetprivilage-HDFC Bank World Debit Ccard”.

LIC SyndicateBank ink pact with with LIC to act as “Corporate Agent”.

Insurance 10% Indians have life insurance cover and 9.60% Indians have non- life insurance covers.

Interest Rate Subsidy For export raised to 3% from 2%.

Ratnakar Bank Ratnakar Bank also called as NH4 Bank acquired RBS India assets.

IRDA IRDA stipulated that not more than 25% of insurance business handled by bank as broker can be placed with the Insurance Company floated by it.

e-KYC e-KYC initiated by UIDAI. Paperless KYC permitted by RBI.

ARC RBI increased ceiling for FDI in ARC from 49% to 74%

White Label ATM First White Label ATM by Muthoot Finance Ltd-NBFC.

Rajiv Awas Yojana For Urban Poors residing in Slum area.

FDI Cap Insurance Sector- 49% Pension Sector-26% Private Sector Banks-74%. Automatic route-49%. Above 49%- Govt

Approval is required.

HUF HUF or its Karta cannot be designated as a partner in LLP.

Saving Rate Overall saving rate at proportion of GDP for FY 2013- 2014 was 30.60%.

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Poverty Line Poverty line computed on the basis of spending and not family income. Spending is per person and not per family. Rs.26 in Rural area and Rs.32 in Urban area.

Dollar Scheme

Deposit Hedging cost reduced to 3.50% p.a. against 7%. RBI Subsidy is available to bank. This is low cost deposit.

World’s Economy

Largest 1) US 2) China 3) Japan

DBT Direct Benefit Transfer first introduced in Gas

ACU Common settlement currency of ACU is US$.

CAMELS Rating of Banks by RBI. Capital Adequacy, Asset Quality, Management, Earnings, Liquidity, Systems & Controls.

RBI has decided that now onwards the Reverse Repo Rate will not be announced separately, but will be linked to Repo rate and it will always be 100 bps below the Repo rate.

It was decided that Marginal Standing Facility i.e. MSF rate will be linked to Repo rate and it will always be 100 bps above the Repo Rate.

Ministry of Housing and Urban Poverty Alleviation, Government of India has set up the Credit Risk Guarantee Fund Trust for Low Income Housing (CRGFTLIH). Banks may assign zero risk weight for the guaranteed portion. In case the advance covered by CRGFTLIH guarantee becomes non-performing, no provision need be made towards the guaranteed portion.

Abhijit Sen committee- Committee recommended the change in the base year of the Wholesale Price Index.

2010 is the base year of the New Consumer Price Index Series. Since January 2011 the C.S.O. (Central Statistical Office) has started new CPI series.

With which among the countries has India signed a Comprehensive Economic Partnership Agreement (CEPA)? India has signed a CEPA (Comprehensive Economic Partnership Agreement) with Japan and South Korea. India has signed CECA (Comprehensive Economic Cooperation Agreement) with Singapore and Malaysia.

All Women Bank (Bharatiya Mahila Bank) opened in Nov 2013 with initial capital of Rs.1000 crore. FM constituted committee to prepare blue print for Women’s Bank under Chairmanship of former Canara Bank CMD Mr. M B N Rao.

Safety Net- Safety Net is a scheme where a company promoters assure that they will pay back shares from retail investors at the IPO price if its stock falls sharply during first 6 months after listing. Use of safety net shows confidence of a company in pricing the company.

Name & Shame Policy- To publish the photographs and other details of willful loan defaulters in news papers.

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Finance Ministry has asked PSBs to limit their reliance on CDs to 10% of their total deposits while the combined cap on bulk deposits and CDs were kept at 15% of their total deposits.

CAD- Current Account Deficit-Difference between inflows and outflows of foreign currency.

Presently right to make monetary policy decisions vests with RBI Governor instead of Committee.

As per IRDA Guidelines, no denial of new health insurance up to the age of 65 years.

Chairman of 14 th Finance Commission- Mr. Y V Reddy. (Former RBI Governor)

CDR- at least 75% of creditors by Value and 60% of creditors by number should agree for implementation of CDR Scheme.

Small saving Rates wef 01.04.2013-

PPF 5 Year NSC 10 Year NSC SB Account 5 Years RD 5 Yrs MIS

8.70% 8.50% 8.80% 4.00% 8.30% 8.40%

Kisan Vikas Patra-100 months-8.67%

Sukanya Samrudhi Account -8.70%

Senior Citizen Saving Scheme-9.30%-5 Years

Revised Agency Commission rate structure wef 01.07.2012 decided by RBI is as under:-

Sl. No. Type of transaction Unit Existing Rate

Revised Rate

1 Receipts – Physical mode Per transaction Rs. 45 Rs. 50

Receipts – e-mode Per transaction Rs. 45 Rs. 12

2 Pension Payments Per transaction Rs. 60 Rs. 65

3 Payments other than Pension

Per Rs. 100 turnover

9 paise 5.5 paise

Nationalized banks, with more than Rs 3 lakh crore of business, are to get the additional ED- Three Executive Directors.

Basel III measures aim to:

improve the banking sector's ability to absorb shocks arising from financial and

economic stress, whatever the source improve risk management and governance strengthen banks' transparency and disclosures.

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The basic structure of Basel III remains unchanged with three mutually reinforcing pillars.

Pillar 1 : Minimum Regulatory Capital Requirements based on Risk Weighted Assets (RWAs) : Maintaining capital calculated through credit, market and operational risk areas.

Pillar 2 : Supervisory Review Process : Regulating tools and frameworks for dealing with peripheral risks that banks face.

Pillar 3: Market Discipline : Increasing the disclosures that banks must provide to increase the transparency of banks

Under the CDR system, if a suit filed account is to restructured, the consent of creditors is required having : 75% share by value and 60% by number of banks.

FDI in private banking sector of India is allowed up to 74% where FDI up to 49% is allowed through automatic route and FDI beyond 49% but up to 74% is allowed through government approval route.

CTR- monthly reporting to FIU-IND by the Corporate Office with in 15 Days.

MICR - Magnetic Ink Character Recognition. 9 Digits Code.

In terms of Section 20(1) of the Banking Regulation Act, 1949, a bank cannot grant any loans and advances- On the security of its own shares.

Form 15G can be submitted by individual below the Age of 60 Years while form 15H can be submitted by senior citizens i.e. individual’s above the age of 60 years. (60 Years from 1st July 2012).

Form 15G can be submitted by Hindu undivided families but form 15H can be submitted only by Individual above the age of 60 years. ( 60 Years from 1st July 2012).

Bombay Stock Exchange (BSE) – Number one in the world in terms of number of listed companies

MCX-SX gets recognized Stock Exchange status. Third Stock Exchange in India.

Ministry of Agriculture has planned to double the food production in 5 years.

R. Gandhi – Working Group on enhancing liquidity in the Govt Securities & Interest Rate Derivatives Market. Participation of Retail Investors in G Secs.

Grand Fathering Provision- All tax benefit given under that contract in Life Insurance Policy. Existing provision will continue even after that particular tax provision withdrawn or amended

Asset Reconstruction Company (ARC) – The ceiling for FDI in ARC has been increased from 49% to 74% subject to condition that no sponsor may hold more than 50% of shares holding in an ARC by way of FDI or by routing through FII.

Nair Committee- on Priority Sector Advances

Gold Debit card- Rs.1.00 Lacs withdrawal permitted.

e – lounge – 24 hour self operating unit.

HSBC Head Quarter- in UK Navin Jindal is top paid executive of listed companies in India. Package of Rs.73.40 crores p.a. in Jindal Power & Steel Ltd.

12 th Five Year Plan- 2012-13 to 2016-17 target of GDP Growth at 8.20%. Direct electronic cash transfer of subsidies on Aadhar based bank accounts is implemented wef 01.01.2013.

New CDR Norms- Promoter’s contribution upped to 25% from 10%. Promoter’s must pledge 100% shares Unconditional Promoter’s Guarantee Lead Bank can appoint Director when necessary. Concessional rate of interest can’t be less than Base Rate.

As per RBI under BASEL-II norms minimum 9% CRAR is to be maintained

11 th Five year plan ( 2007-12) - GDP Growth rate achieved-7.90%.

Tata Consultancy Services (TCS) is India’s biggest software company.

BHEL & GAIL gets Maharatna status by Govt. of India.

Kisan Credit Card is in the nature of revolving cash credit facility BASEL-III implemented wef 01.04.2013. Banks to assess liquidity risk under BASEL III.

Banks (SCB) can now become a member of stock exchanges as per SEBI to undertake proprietary transactions in the corporate bond market.

Number of ATMs of all the banks put together in India crossed the one Lakh mark. For each ten lakh population 85 ATMS are installed.

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Sick MSEs- A MSE is considered sick when any of the borrowal account of the enterprise remains NPA for 3 months or more, or if the net worth gets eroded due to accumulated losses to the extent of 50% of the net worth. Now , RBI has removed the stipulation that the unit should have been in commercial production for at least 2 years.

The Reserve Bank has advised banks to waive margin/security requirements for agricultural loans up to Rs. 2,00,000.

There would be an overall cap of USD 5 billion for raising of capital by issuance of IDRs by eligible foreign companies in Indian markets.

Baltic Exchange -An exchange that handles the trading and settlement of both physical contracts and derivatives relating to shipping and maritime transportation.

Dr. Rakesh Mohan has been appointed as Executive Director of International Monetary Fund (IMF)

Appreciation and Depreciation of Currency-

• A currency is said to appreciate when it buys more of a foreign currency.

– An appreciation of a nation’s currency will make foreign goods cheaper. – This would likely cause an increase in imports and a decline in exports.

• A currency is said to depreciate when it buys less of a foreign currency.

– A depreciationwill make foreign goods more expensive. – This would likely cause a decrease in imports and an increase in exports.

Internal Rate of Return- IRR is calculated for Project Finance.

Bank Staff welfare facilities ceiling 3% of net profit of previous year ending.

Rapco Bank – Govt of India Enterprise. VaR means - Value at Risk

The asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value.

In view of fragile economic recovery, Plan panel has decided to lower annual average economic growth rate to 8.2% in the 12th Five Year Plan (2012-17) from 9% envisaged earlier.

Hong Kong - The most economically free nations in the world.

The call money market is an integral part of the Indian Money Market, where the day-to-day surplus funds (mostly of banks) are traded. The loans are of short-term duration varying from 1 to 14 days. The money that is lent for one day in this market is known as "Call Money", and if it exceeds one day (but less than 15 days) it is referred to as "Notice Money". Term Money refers to Money lent for 15 days or more in the Inter Bank Market

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Coupon rate: the interest rate paid by the issuer to the bondholder.zero coupon bond-no coupon - issuing value is under the face (nominal) value.Zero Coupon Bonds Pay No Periodic Interest.

Commercial Paper is a ‘money market instrument. CP shall be issued in denominations of 5 lakh and multiples thereof. CP shall be issued at a discount to face value as may be determined by the issuer. CP shall be issued for maturities between a minimum of 7 days and a maximum of up to one year from the date of issue.

Fixed Income Money Market and Derivatives Association of India (FIMMDA)

Committee on Financial Inclusion- Mr C Rangarajan,

Committee on Micro Finance Institution-Y H Malegam

Committee on PSA Lending & Related issues- M V Nair

SEBI has decided to enhance minimum investment amount per client managed by Portfolio Managers to Rs.25 Lacs from Rs.5.00 Lacs.

CVC has appointed Shyamala Gopinath as the Chairperson of the Advisory Board on Bank, Commercial & Financial Frauds.

GAAR - General Anti Avoidance Rules-which aims to check tax evasion by foreign investors has been deferred & will be implemented as recommended by Parthasarathi Shome panel.

“Bombay House” is HQ of TATA Group located at Mumbai.

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CDs are short-term borrowings in the form of Usance Promissory Notes having a maturity of not less than 15 days up to a maximum of one year. CD is subject to payment of Stamp Duty under Indian Stamp Act, 1899 (Central Act). These are issued in denominations of Rs.5 Lacs and Rs. 1 Lac thereafter. Bank CDs have maturity up to one year. Minimum period for a bank CD is fifteen days. Financial Institutions are allowed to issue CDs for a period between 1 year and up to 3 years.

Treasury bills are actually a class of Central Government Securities. Treasury bills, commonly referred to as T-Bills are issued by Government of India against their short term borrowing requirements with maturities ranging between 14 to 364 days. The T-Bill of below mentioned periods are currently issued by Government/Reserve Bank of India in Primary Market 91-day and 364-day T-Bills. All these are issued at a discount-to-face value. For example a Treasury bill of Rs. 100.00 face value issued for Rs. 91.50 gets redeemed at the end of it's tenure at Rs. 100.00.

The Coupon rate is simply the interest rate that every debenture/Bond carries on its face value and is fixed at the time of issuance. For example, a 12% p.a coupon rate on a bond/debenture of Rs 100 implies that the investor will receive Rs 12 p.a. The coupon can be payable monthly, quarterly, half-yearly, or annually or cumulative on redemption

Cyrus Mistry is named after Ratan Tata as CEO of TATA Group. Petrol cheaper in Delhi and costly in Mumbai. Cheaper in Venezuala at $ 0.02.

Recently FDI in Insurance sector allowed up to 49%.

Zero Date is date of commencement of project implementation CIC – Central Information Commissioner- Shri Satyananda Mishra. Mr. Basant Seth- Our Ex Chairman appointed as Information Commissioner in CIC.

Airtel launched 4 G services first time in India in Kolkata City. Buy back of shares by the company- Floor Price-Minimum buy back price offered by the company. Quoted Price- Actual price of shares on stock exchange Discounted price- Actual price paid to the investors by the company after buy back of shares.

GoI has recently enhanced minimum pension amount to Rs.1000/-

Validity of cheques/DDs/PO is now reduced to 3 months wef 01-04-2012 i-e from the date of instrument to be presented for payment.

SOPA- Stop Online Piracy Act. SUUTI: Specified Undertaking of the Unit Trust of India.

During 12 th Five year plan ( 2012-2017) targeted average growth of 8.20%.

Best destination to do business in the world is Singapore.

United Stock Exchange is associated with currency futures. Damodaran Committee was set up for Customer Service.-Prepayment Charges. . Rupee Symbol was suggested by D. Uday Kumar, IITan in July 2010.

USB- Ultra Small Branches under financial inclusion

FRBM- Fiscal Responsibility and Budget Management Act Only Salaried individuals with taxable income of less than Rs 5 lakh will not have to file income-tax returns.

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The Reserve Bank allowed domestic companies to issue shares against import of capital goods and machineries, making it easier for them to expand.

“All such conversions of import payables for capital goods into FDI should be completed within 180 days from the date of shipment of the goods”, RBI said. Earlier, an Indian company was only allowed to issue shares to a foreigner in lieu of technology or technical know-how and against royalty and lumpsump fees.

Equities could also be issued under the FDI norms against pre-operative expenses like payment of rent. The central bank has said that for conversion of shares for payments of imported capital goods, the company has to pass a special resolution.

Currency of China- Yuan (Renminbi)

Best e-governed State in India- Delhi

“Revolution 2020” is a book written by Chetan Bhagat

CSO- Central Statistical Organization conducts Economic Census of India

Yes Bank is paying highest SB interest @7% with balances over Rs.1.00 lacs and 6% for balances below Rs.1.00 lacs.

According to Supreme Court Judgement dated 19-02-2008 in the case of Thiruvengada Pillai vs. Navaneethammal and Anr., the stamp papers do not have any expiry period.

Goa topped the list of states with highest per capita income in the country with a total per capita income of Rs.1,92,652. Per Capita Income means earnings of each Indian if the national income is evenly divided among the Country’s population.

SPV- Special Purpose Vehicle - SPVs are legal entities created mostly by companies to execute a particular Project for a special purpose.

Rajiv Awas Yojana - Central Govt. Scheme for affordable Housing for slum dwellers ( urban poors)

ECB –Limit for eligible borrowers to avail of ECB under the Automatic route per F Y for Corporate to $ 750 millions as against $500 millions. Services Sector Corporates $ 200 millions from $ 100 millions.

SEBI rejected the recommendation of Bimal Jalan Committee of not allowing Stock Exchanges to be listed on Stock Exchanges.

Ex. SBI Chairman- Mr. Prateep Chaudhari initiated discussions regarding abolishing of CRR.

Microsoft has launched its educational portal “ Unlimited Potensial” in India.

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Bangala Desh is considered as the Originator of the concept of “Micro Finance”. NHB- National Housing Bank is the Housing Finance Regulator.

Annual investment ceiling in PPF has been increased to Rs.1.00 Lac from Rs.70,000/-

ADB-67 Member at present.

Laxmi Mittal is Sixth & Mukesh Ambani is 9 th as per Forbes Billinioers list - most richest persons in the World.

Syndicate Bank Employee can now contribute any % of pay as additional EPF (Earlier cap-20% of pay)

Reimbursement of premium under SyndArogya policies is restricted to 50% of premium paid for policies up to Rs.1.00 Lac.

Core Banking Solutions was introduced in our bank in the year 2001. ABB Facilities were introduced wef 01.11.2002. Multicity Cheque Book facility was introduced wef 01.04.2004.

India's first fund with SIP in Gold- Reliance Gold Saving Fund.

Chairman of SEBI- Mr. U K Sinha, Ex CMD of UTI AMC.

“e-post office”, the e-Commerce portal of India Post. The portal will enable the customers to transact postal business any time.

NALCO is the first PSU to offer Employees Stock Options (ESOPs)

Honkong - Real Estate highest prices in the world ( Mumbai 6 th )

Presently, China has become the second largest economy in the world.

Oldest Stock Exchange in Asia- Bombay Stock Exchange, Mumbai.

eTHIC- software is used by our bank for RBIA developed by 3i Infotech.

Net interest margin is defined as the total interest earned less total interest paid

Burden is defined as the total non-interest expenses less total non-interest income.

The name of ABN Amro Bank N. V. was changed to Royal Bank of Scotland N. V. wef 19.03.2010.

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India at 5 th spot in Global Economic Power list. First USA, Second China, Third Japan, Fourth Germany and Fifth India. China has became second larest economy in the World against third as earlier. India moved to fifth spot in 2009 from 10 th in 2000.

Dutch Auction Method (DAM) -Under the DAM, Investors are required to put in bids for quantum of shares and the price they are willing to pay. The last or lowest price at which all shares are assigned becomes the issue price of the shares provided it is not lower then the floor price. Investors are allotted shares at the issue price.

Example: Where X Co. Ltd., offered 10000 shares and bids were received for 2500 shares at Rs 500/ – per share; further 3500 shares at Rs 475/- per share; another 3000 shares at Rs 400/- per share and 1000 shares at Rs 375/-. At Rs 375/- which is the lowest for the 10000 shares becomes the issue price. Book Building Method is based on the Dutch auction method where the issuer determines a price band within which bids are invited to determine the price and the lowest price offered is considered the issue price.

French Auction Method (FAM) -Under FAM issuing company sets a floor price (ibid) which investors place their bids. On a price-priority basis, allotments are made. Investors are issued shares at the prices they have indicated and not the cut off price as is the system under DAM. Investors are bound to pay the price they have stated in their applications. NTPC & REC issued shares under this method.

NSDL is National Securities Depository Limited - the largest depository of Indian stocks

CDSL is Central Depository Securities Ltd

SEBI is celebrating its Silver Jubilee during this year. Completed 25 years.

Bajaj Auto allowed Quadricycles RE60 (Identification Symbol-Q) to play on roads as a public transport with in city limits.

AirAsia India - In the new airline, AirAsia (Malaysia) will hold 49% stake, Tata Sons, 30%, and

Arun Bhatia of Telestra Tradeplace the remaining 21%.

Reserve Bank of India The Reserve Bank of India started functioning on April 1, 1935, making April 1, 2009 to March 31, 2010 its 75th year. Bank’s Platinum Jubilee Year. RBI Nationalised in 1948.

Insurance policy Insurance policy is contract of indemnity.

Financial Inclusion

( FI) Financial inclusion is delivery of the banking facilities /services to all the people in fair, transparent and equitable manner at affordable cost.

Finacial Inclusion- is providing or ensuring banking services at affordable costs to weaker sections of the society or unbanked segment which does not have access to formal banking systems.

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United Western Bank

merged

In IDBI Bank

Bank of Madura was

merged

With ICICI Bank

Global Trust Bank has

been

Merged with OBC.

Suvarna Sahakari Bank Merged with IOB wef 01.02.2009

MD & CEO of Axis

Bank Shikha Sharma.

MD & CEO of ICICI Bank

Chanda Kochar wef 01.05.2009. K V Kamath is now Non Executive Chairman of the ICICI Bank.

Application Supported

By Blocked Amount

(ASBA )

This facility is available while applying for initial public offer (IPO) instead of paying through cheques.

Commonwealth Bank Australia’s leading financial institution Commonwealth Bank will be opening its first branch in India (in Mumbai)

Bank mergers Finance Ministry has appointed Global Consultants Mc Kinsay & Co. and Ernst & Young to suggest possible PSU Bank candidates that could be amalgamated to form bigger & strong banks.

Insurance Regulatory & Development

Authority (IRDA) -

Chairman

T.S. Vijayan (Ex LIC Chairman)

RBI Governor Mr. Raghuram Rajan wef 04.09.2013.

Healthy merger in

banking industry Times Bank and HDFC Bank

Chairman of NITI

Ayog

Prime Minister is ex-officio chairman of NITI Ayog.

Provision Coverage

Ratio Provision Coverage Ratio- PCR is a measure of funds that banks have to set aside from their profits to protect against losses from some loan going bad. Higher PCR denotes good financial health.

My Money Card

India Travel Card

AXIS Bank launches this pre-paid card for youths the freedom to spend anytime and anywhere.

Axis Bank’s India Travel Card, a unique prepaid debit card to secure currency needs when Foreign Nationals and Non Resident Indians travel in India. Loaded with a host of unique features, the India Travel Card is designed to make Indian trip more enjoyable and free from foreign currency exchange hassles. The India Travel Card will only be available for Foreign Nationals and Non Resident Indians.

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Conversion of shares

into physical form from

electronic form.

Is called “Rematerialisation”

Reverse Mortgage – A reverse mortgage enables older homeowners (60+) to convert part of the equity in their homes into tax-free income without having to sell the home, give up title, or take on a new monthly mortgage payment. The reverse mortgage is aptly named because the payment stream is “reversed.” Instead of making monthly payments to a lender, as with a regular mortgage, a lender makes payments to you.

Rs.1/- Revenue Stamp

to be affixed as per

Indian Stamp Act.

For receipt up to Rs.5000/- exempted as per Indian Stamp Act. For issuing receipt above Rs.5000/-, one rupee revenue stamp must be affixed.

Consumer Protection

Act 1986 District Forum- Subject to the other provisions of this Act, the District Forum shall have jurisdiction to entertain complaints where the value of the goods or services and the compensation, if any, claimed does not exceed rupees Twenty lakhs.

State Forum- complaints where the value of the goods or services and compensation, if any, claimed exceeds rupees Twenty lakhs

but does not exceed rupees 100 lakhs;

National Forum- ) complaints where the value of the goods or services and compensation, if any, claimed exceeds rupees 100

lakhs; Limitation period is two years from the cause of action.

Chairman of National

Consumer Council Minister of Consumer Affairs is ex – officio chairman of National Consumer Council.

Rajbhasha Division in

Central Govt. is

associated with

Ministry of Home Affairs and not Finance Ministry.

Commodity Exchanges MCX- Multi Commodity Exchange of India. Country’s first electronic exchange for commodities market. NMCE- National Multi Commodity Exchange at Ahmedabad. NCDEX-National Commodity and Derivatives Exchange at Mumbai.

FEMA -1999 Foreign Exchange Management Act -1999 . It extends to the whole of India. FERA 1973 is replaced by FEMA 1999. FEMA come into force on the 1st day of June, 2000.

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Rupee is strong –

(Moving from say Rs.45

per USD to Rs.44 to 43

to 42 to 41 …….. etc.)

Importers Gain and Exporters loss

Rupee is weak (Moving from say Rs.40

per USD to Rs.41 to 42

to 43 to 44 …….. etc.)

Exporters gain and Importers loss

Regulators RBI regulates the money market, SEBI regulates the capital market and IRDA regulates the insurance sector.

Govt holding in Public

Sector Banks should

not fall below ---- at

any time

51%

Micro credit - SHG

Financing Bangladesh Grameena Bank is topper in the world for providing micro credit to SHG. Head of the Bank – Mohmmed Yunus.

Certificate of Deposit Minimum Rs.1.00 lac and in multiples of Rs.1.00 lacs Not less than 7 days and not more than 1 year. Freely transferable by endorsement and delivery.

Right to Information

Act Implemented Wef 12.10.2005, Fee of Rs.10/- payable along with application is must otherwise do not give information. ATM operations are exempted from RTI Act.

Mergers of RRBs SyndicateBank has amalgamated four RRBs Malparabha Grameen Bank Bijapur Grameen Bank Varada Grameen Bank Nethavathi Grameen Bank and Formatted Karnataka Vikas Gramin Bank with its HO at Dharwad.

Securitization - It referes to act of making a loan or mortgage in to tradable security by issuing bill of exchange or other negotiable paper in place of a loan.

In simple- selling of loan assets.

Import Export (IE)

Codes

Given by DGFT, Director General of Foreign Trade.

DICGC- Deposit

Insurance Premium 10 Paisa for every deposit of Rs.100 payable half yearly and premium is exempted from service tax. Claim Rs1,00,000/- per bank ( Principle + Interest) Individual accounts and Joint accounts with others- separate protection of Rs.1,00,000/- is available.

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Days 15- March- Consumers Day 15- June- World Environment Day 7- April- World Health Day 8- March- International Womens Day. 31-Oct- World Saving Day 23-Dec –Farmers Day in India

HDFC Bank, Centurion

Bank of Punjab seal

largest banking merger:

HDFC Bank approved the acquisition of Centurion bank of Punjab (CBOP) for Rs.9, 510 Crore in the largest merger in the financial sector in India.

SEZ or Industrial Park Can be classified as Infrastructure Sector.

Fair Practices Code for

Lenders

Formulated by RBI and not by IBA.

Participatory Note (PN) Is associated with Foreign Institutional Investor. FII. Participatory Notes are Derivatives. “Participatory Notes are

offshore derivative instruments issued by overseas investor who

have no access direct to the Indian Capital Markets”

“Finacle” banking

software is Developed by Infosys Technologies Ltd

Oldest Stock Exchange

in Asia Bombay Stock Exchange (BSE) – year 1875

SENSEX refers to

BANKEX refers to

NIFTY refers to

Sensitive Index of shares prices of 30 scrips listed at BSE. Sensitive Index of shares prices of banking scrips listed at BSE. Introduced wef 01.01.2002. Sensitive Index of shares prices of 50 scrips listed at NSE.

Dynamic Provisioning

or expected loan loss provisioning to maintain financial stability

The Reserve Bank of India ( RBI) stressed on the importance of dynamic or expected loan loss provisioning in order to maintain financial stability. “Dynamic or expected loan loss provisioning can contribute to financial stability by recognising the losses early in the cycle at the time of loan origination by building up buffers in good times that can be used in bad times, thereby limiting the consequences during a downturn.

Options Call option

Put Option

It is contract that provides a right but does not impose any obligation to buy or sell a financial instrument.

Call option : The owner i.e. the buyer, has the right to purchase and the seller has to obligation to sell, a specified no. of instruments say shares at a specified price during the time prior to expiry date.

Put option : Owner or the buyer has the right to sell and the seller has the obligation to buy during a particular period.

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Futures The futures are the contracts between sellers and buyers under which the sellers (termed ‘short’) have to deliver, a pre-fixed quantity, at a pre-fixed time in future, at a pre-fixed price, to the buyers (known as ‘long’). It is a legally binding obligation between two parties to give/take delivery at a certain point of time in future.

Factoring and

Forfeiting Factoring -- financing against bills / invoices of a trading firm (mostly of exporters) by a financial institution. It is selling of receivables to the purchaser who is the factor. If the factor is unable to receive the amount from the purchaser, he has to suffer loss as there is no recourse to the seller (exporter). When instead of selling, the receivables are discounted, it is called forfeiting.

Value Added Tax

(VAT) Implemented wef 01/04/2005 First time implemented in Haryana.

BANCS Core Banking Solution developed by TCS ( Tata Consultancy Services)

AML 3 i Infotech developed Anti Money Laundering Solutions for Bank of India.

First Indian Bank to be

listed on New York

Stock Exchange.

ICICI Bank

Tier-II capital cannot

exceed

100% of Tier-I capital.

Revaluation Reserves Only 45 % of value can be taken for Tier-II capital once in five years.

SyndShakti SyndShakti- First implemented in Bellary district (K S) wherein each customer is given a smart card - a biometric enabled multifunction card. Each customer would be identified uniquely by finger prints.

First bank to launch

mobile banking in India HDFC

Oldest Public Sector

Bank Allahabad Bank

Regulatory Authority

for Capital Market in

India

Securities and Exchange Board of India (SEBI)

IRDA Insurance Regularity and Development Authority. Regularity Authority for Insurance Sector.

Investment Fluctuation

Reserve

Can be treated as Tier-I capital

Ad Valorem stamp duty

means In proportion to the value of the instrument. Or as % of value of the Instrument.

GETF- Gold Exchange Traded Fund Gold in demat form and minimum unit of one gm. Pure Gold 99.70% or 99.95% available.

107

GDR-

IDR -

Global Depository Receipt- Tool used by Indian companies to raise funds from Foreign Bourses.

Indian Depository Receipt- Tool used by Foreign companies to raise funds from Indian Bourses and SEBI is the regulator.

COFEPOSA deals with economic offences.

Green Shoe Option Provision of retention of amount in excess of subscription of public issue of shares/Debentures/Bonds etc.

Plastic Money Credit Card, Debit Card, Smart Card, SKCC, SKSCC, SLUCC, SSCC Cards

Our HO Security Dept Is first among all public sector banks to get ISO 9001-2000 certification.

Banks in Insurance

Sector If CRAR is more than 10%, then only Banks can enter into Insurance Sector.

Mr. A. K. Khandelwal

Committee The Government–appointed High Powered Committee headed by the Former Bank of Baroda Chairman, Mr. A. K. Khandelwal to come out with strategies on planning of recruitment and succession as well as retention of best performers through performance-

linked incentives and grooming such officials for leadership roles.

Black Gold Oil

White Gold Cotton

Yellow Revolution Production of Oil Seeds and Pulses.

Credit Card Central Bank of India is first among Indian Bank to introduce credit card.

DSB Return To be submitted by HO to RBI under Off Site Supervision Mechanism.

Declaration of Dividend

by Banks Bank is expected to transfer to statutory reserve fund 25% of profits before dividend declaration.

Regulatory Authority

for Credit Rating

Agencies

Securities and Exchange Board of India (SEBI).

National Spot Exchange Online Trading of Agri Produces all over in India. Physical delivery allowed only in three States i-e Maharashtra, Gujarat and Karnataka. Promoted by Financial Technologies and NAFED.

Pension Fund The Pension Fund and Regulatory Development Authority (PFRDA) unveiled a savings account scheme under the New Pension Scheme (NPS) which would allow investors to enter and exit at will.

Business Facilitators or

Business

Correspondents

As per recent RBI guidelines dtd 24.04.2008 ex staff along with defense personnel & Govt Employees can be appointed as Business Facilitators or Business Correspondents.

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The Payment and

Settlement Systems Act,

2007

The Payment and Settlement Systems Act, 2007 (PSS Act, 2007) came into force with effect from Aug 12, 2008 with a objective to provides for the regulation and supervision of payment systems in India and designates RBI as the authority for that purpose.

Frauds and failure of

CBS system

Is the example of Operational Risk.

State Bank of India First Bank to generate captive wind power (Green Energy).

UIDAI- “ADHAR” is Brand

Name

UIDAI- Unique Identification Authority of India- UID Card will be issued by UIDAI. This will help banks for KYC compliance.

ICICI Bank ICICI Bank is the second Indian Bank ( after SBI ) to get a full fledged banking license in Singapore. Singapore has given an in principle clearance to ICICI Bank recently to operate as qualified full bank (QFB) in the country.

Financial Stability and

Development Council

(FSDC)

Central Govt. has set up a Financial Stability and Development Council whose job would be to monitor conglomerates & improve condition among financial regulators with a view to prevent future financial crisis. The FSDC will be super regulator in the financial sector. Meetings of FSDC are chaired by Finance Minister of India.

Central Electronic

Registry

Central Electronic Registry-CER- E-Registry of mortgaged home loans. Establishment of CER has been envisaged under SARFAESI Act 2002. HL frauds can be avoided.

SEBI, the capital market regulator hikes retail investor limit in initial public offering to Rs.2.00 lacs from Rs.1.00 lacs .

Banks are permitted to use the floating provisions only for contingencies under extraordinary circumstances for making specific provisions in impaired accounts after obtaining Board’s approval and with prior permission of RBI.

IndusInd Bank has launched Mumbai’s first solar powered ATM as a part of its Green Office Project Campgain “ Hum aur Hariyali”

IRDA has stipulated that the mandatory ceding by every general insurer in the country to National Insurer-GIC will stay put at 10%.

UK Payment council has said that to make payments more efficient no cheques will be issued or honored in Britain from Oct 2018.

Zeta Analysis is a model for identifying the bankruptcy risk of companies.

109

Tobin Tax – is tax on foreign exchange transactions that would be applied uniformly by all major countries to deter speculation on currency fluctuations.

NPV- Net Present Value – NPV gives time value of money. Value of tomorrow’s money as if stands today.

Number of US banks failure has surpassed the 100 mark in 2012.

Largest bike maker in the world - Hero Honda.

Direct Taxes- IT, Wealth Tax, STT .

Indirect Taxes- Customs, Excise & Service Tax

All the companies must reserve 35% of shares for retail investors while coming out with IPO as per SEBI guidelines. IPO should be finalized within 12 days from the date of closing and to be listed on Stock Exchanges within 7 days from the date of allotment. For Retail Investors, limit has been increased to Rs.2.00 Lacs from earlier Rs.1.00 lacs by SEBI and first public issue was MOIL.

Prime task for Finance Commission is to decide on the distribution of net taxes of the center between Union & States. Finance Commission is appointed by President of India.

10% people in India have an insurance cover. 13% have debit cards & only 3% have credit cards.

PIPE - It stands for private investments in public equity (PIPEs). It involves buying stakes by private equity funds in listed companies. PIPEs have generated extraordinary returns by applying private equity principles to public investing.

RBI has increased threshold limit for RTGS transactions from Rs.1.00 lacs to Rs.2.00 lacs.

The Reserve Bank of India was nationalized in 1948.

“Euro” is the currency of European Union.

“Growth and Finance” Book written by Dr. C Rangarajan, Ex-Chairman, Prime Minister's Economic Advisory Council.

Bombay Stock Exchange has proposed to launch SME Exchange.

Mobile Number portability first implemented in Haryana State.

FSDC meetings are chaired by Finance Minister of India.

United Stock Exchange is associated with Currency Futures.

SyndArogya policies up to Rs.5.00 lacs shall be issued by UIICL with out any medical check up up to entry age of 65 years and all existing renewals shall be done by UIICL up to age of 80 years with out any medical examination.

Business Correspondent appointed by our bank shall open at least 200 a/c s every month.

Interest on Loans & Advances shall not below Base Rate including concessions granted by the bank if any.

Under Financial Inclusion, RBI Permission is not required for opening the branches.

Finance Commissions set up by the President of India decides the distribution of tax incomes between the Central and State Govts.

The merger of which of the following two Indian companies took place in recent past which is termed as “Largest ever merger in India’s Corporate History” ? Reliance Industries and Reliance Petroleum Ltd.

‘SEPA’. What is the full form of the term - Single Euro Payments Area

Working Group to Review the Business Correspondent Model - Shri P Vijaya Bhaskar Rao

The BlackBerry was created by 23-year-old Greek-Turkish college dropout named Mike Lazaridis, working out of a one-room tech startup in Waterloo, Canada. The BlackBerry officially came into India in October 2004.

‘Indira Gandhi National Widow Pension Scheme’ a monthly pension will be given to the widows. What will be the amount of the pension ? Rs.300/- p m

The Govt. of India allowed the Income Tax Department to set up its centralized IT processing center in Bangalore.

The Govt. of India introduced Money Laundering Bill 2009. Under the bill which agencies is empowered to search the premises after the offence is committed and a case is filed ? Enforcement Directorate.

What is our FDI policy ? Under the extant policy, investments into most sectors fall under the automatic route. Such investments require no prior permission of the government or any regulator and the Indian company receiving the foreign investment is only required to intimate the RBI of any such investment. But some sectors still require prior government approval and most sectors that require government approval fall within the ‘sensitive’ category.

The following are the instruments of Credit Control in the hands of the RBI - Lowering or raising the minimum cash reserves maintained by the commercial banks.

110

Which of the program was launched to further improve the facilities of irrigation in rural India ? National Watershed Development Programme.

Decision taken by the Govt. of India all the Public Sector Banks (PSBs) will be recapitalized over the next two years so that they can maintain a Capital Adequacy Ratio (CAR) of ……12%.

Subscribe to the Public Provident Fund any amount not less than Rs. 500 and not more than Rs. 1,00,000 in a year. Non Resident Indians are not eligible to open an account under the Public Provident Fund Scheme. Close PPF a/c any time after the expiry of 15 years from the end of the year in which the initial subscription was made by him,

EL NINO - A warming of the ocean surface off the western coast of South America that occurs every 4 to 12 years when upwelling of cold, nutrient-rich water does not occur. It causes die-offs of plankton and fish and affects Pacific jet stream winds, altering storm tracks and creating unusual weather patterns in various parts of the world

La Nino- It follows an El Nino. It is anti El-Nino or simply a cold event. It is the cooling of water in the Pacific Ocean.

World’s first zero waste city is under construction in Abu Dhabi called Masdar City. It is to be completed by 2016 and will be world’s first carbon neutral, zero waste city completely powered by renewable energy.

The wage ceiling for coverage of employees under the Employees’ State Insurance Act, 1948 has been enhanced from Rs.10,000/- to Rs.15,000/- per month w.e.f. 01.05.2010.

The Payment of Gratuity Act, 1972 has been amended first to cover teachers in educational institutions and again to enhance the ceiling on gratuity from Rs.3.5 lakh to Rs.10 lakh.

The Ministry of Corporate Affairs is the nodal Ministry in the matter of convergence of International Financial Reporting Standards (IFRS) and has decided that Indian Accounting Standards currently followed by the companies in a phased manner as part of the G20 commitment.

ALCO of the Bank takes care of Market risk.

Annual Stock Audit is mandatory for NPA accounts secured by stock and book debts with the Real Account balance of Rs 5 crores and above.

MIBOR refers to Mumbai Inter Bank Offer Rate

ASD 8 is a document format for securing advances of the bank and is Confirmation letter for depositing the original title deeds for securing a loan facility. Always AD 8 is to be stamped before execution.

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112

A bank issuing a LC has a maximum of 5 Banking days to verify if the documents presented comply with the terms of the LC.

Indian rupee is freely convertible on current a/c transactions.

Forex Remittances for investment in immovable property is a Capital a/c transaction

ESOP means - Employee Stock Option Plan.

The version of Uniform Customs and Practices for Documentary Credits now in force is UCP

600.

Rajiv Gandhi Equity Saving Scheme 2012.

Who can invest : New retail equity investors ( Resident Indians) with an annual income less than 12 Lakh.

Investment amount : 50,000 (maximum amount one can invest under the scheme)

Deduction available on : 25,000 (50% of 50,000)

Maximum benefit : .5,000 (investors with an annual income of 10 Lakh fall under the 20% income tax slab)

Lock in period : 3 years from the date of acquisition (to get a tax deduction over & above Section 80C)

Section 80CCG – Deduction in respect of investment made under equity saving scheme:

Finance Ministry has introduced new deduction u/s 80CCG upto 25,000/- @ 50% of Investments in “Rajiv Gandhi Equity Saving Scheme 2012” for assesses (employees) whose gross total income does not exceeds 12 Lakh.

SHADOW BANKING -The term refers to the practice of banking-like activities performed by non-banking finance companies, which are not subject to strict regulation. However, these institutions function as intermediaries between the investors and the borrowers, providing credit and generating liquidity in the system. Although these entities do not accept traditional.

Public Provident Fund-(PPF)-

The minimum deposit amount is Rs. 500 per annum and the upper ceiling limit is Rs. 1,00,000 per annum. A penalty of Rs. 50 will be levied per year of default, if the customer doesn’t deposit the minimum deposit amount of Rs. 500 on the completion of the financial year. The current rate of interest on Public Provident Fund (PPF) is 8.8%, which is compounded annually. A Public Provident Fund (PPF) account gets matured after the completion of 15 years from the end of the year in which the account was opened.

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A customer can extend the tenure of a Public Provident Fund (PPF) investment for a block period of 5 years beyond the maturity period by submitting Form H within one year from the date of maturity. No premature withdrawal is allowed for Public Provident Fund (PPF) accounts. Only in the case of the death of a customer, their nominee /legal heir can close the account. Customer can make one withdrawal every year, from the 7th financial year, of an amount that does not exceed 50% of the balance of the customer credit at the end of the fourth year immediately preceding the year of withdrawal or the amount at the end of the preceding year, whichever is lower.

White revolution is associated with Milk production (Late Dr. Verghese Kurien).

Syndicate Bank commenced the

business with a capital of

Rs. 8000/- (400 shares having paid up value of Rs.20/-. Authorised Capital Rs.1 lac )

World Bank International Bank for Reconstruction and Development. IBRD opened wef 01.07.1944 HQ at Washington DC.

Cheque Truncation System CTS-2010 - Standard" for Cheque Forms – Specifications issued by RBI.

Cheque Truncation is an efficiency enhancement initiative in the Payments Systems area, initiated by RBI.

Truncation is the process of stopping the flow of the physical cheque, to the drawee bank branch. The physical instrument is truncated (i.e. movement of paper cheque is stopped) at some point, en-route to the drawee branch and an electronic image of the cheque is sent, along with the relevant information, like the MICR fields, date of presentation, presenting banks etc.

By amending Sec 6 of NI Act, the physical image of a truncated cheque and electronic cheques, have been recognised equal to a paper cheque.

FSDC Financial Stability and Development Council, India’s apex body of the financial sector.

The main objectives of FRBM Act

are To reduce fiscal deficit. To adopt prudent debt management. To generate revenue surplus

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Business Correspondent Business Correspondent is an agent who works on behalf of banks on an outsourcing basis for taking banking services to the hitherto non-banked centers. Idea has its origin in Brazil.

Financial Stability Unit (FSU) Financial Stability Unit (FSU) RBI has set up FSU on 17.07.2009 to conduct macro prudential surveillance of the financial system on an ongoing basis.

ATM Debits Banks have to reimburse erroneous debit arising out of failed ATM transactions within 7 working days from the date of receipt of a complaint. If bank failed to do so, fine of Rs.100 per day is payable.

IDBI Bank Wef 01.10.2004 became Commercial Bank. Earlier it was Financial Institution.

Gross National Product: It is the total market value of the finished goods and services manufactured within the country in a given financial year, plus income earned by the local residents from investments made abroad, minus the income earned by foreigners in the domestic market.

Fiscal Deficit : This is the gap between the government's total spending and the sum of its revenue receipts and non-debt capital receipts. It represents the total amount of borrowed funds required by the government to fully meet its expenditure.

Non - Plan Expenditure : It consists of Revenue and Capital Expenditure on interest payments, Defense Expenditure, subsidies, postal deficit, police, pensions, economic services, loans to public sector enterprises and loans as well as grants to State governments, Union territories and foreign governments.

Budget deficit : It is the excess of total expenditure over total receipts, with borrowing not included among receipts. This deficit is funded by borrowing. In other words, it is the amount by which planned expenditure is greater than the expected income for a particular period/ project.

Maharatna Status Mega public sector undertakings of the country have now got greater financial and operational autonomy after the government accorded the “Maharatna” status to these firms to help them emerge as global giants. The PSUs that would benefit from the decision include ONGC, IOC, SAIL,BHEL,GAIL and NTPC.

Acquiring of shares A banking company can acquire shares in a company subject to ceiling not exceeding 30% of the paid up capital and reserves of the bank or 30% of the capital of the company whichever is lower.

Return of Capital to Govt of India First bank to return capital to the Central Government is Punjab National Bank.

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Official language policy As per Official language policy for B region, branch target to reply in Hindi letter received in Hindi is 100%.

Banking Codes & Standards Board

of India (BCSBI) This Board has been set up as per recommendations of S S Tarapore Committee.

Tata Consultancy Services TCS is coordinating with Government of India in Passport Seva Project .

P J Nayak Global financial services major Morgan Stanley has appointed former Axis Bank Chairman P. J. Nayak as its new country head and Chief Executive Officer for India.

China has now became the second Largest Economy of the World .

Barack Obama is the author of the Book “Dreams from My Father : A Story of Race and Inheritance” .

M. S. Swaminathan is the author of the book entitled, “To a Hunger-free World”.

“Imagining India” Book is written by Mr. Nandan Nilekani .

Mobile Phones Today 48% India’s population is using mobile Phones.

BASEL Banks are required to maintain a minimum 5.5% in common equity (as against the current 3.6%) by March 31, 2015 for credit risk + market risk + operational risk on an ongoing basis (progressively increasing from 4.5% from 1st April 2013), thus by March 31, 2018, banks have to maintain CRAR of 11.50% (including CCB and Tier 2 capital)

Banks to create a capital conservation buffer (CCB) of 2.5% by 31st March 2018 (starting from 31st March, 2015 at the rate of 0.625% of RWA every year there onwards) with certain restrictions on pay out of dividends, if not adhered to this ratio.

Tier 1 capital must be at least 7% of RWA on an ongoing basis. Thus within the min Tier 1 capital, Additional Tier 1 capital can be admitted maximum at 1.5% of RWAs by the year 2018.Total Capital (Tier 1 Capital plus Tier 2 Capital) must be at least 9% of RWAs on an ongoing basis. Thus, within the minimum CRAR of 9%, Tier 2 capital can be admitted max up to 2% by the year 2018.

FRBM Act 2003:

Fiscal Responsibility and Budget Management act was enacted by the Parliament of India to institutionalise financial discipline, reduce India’s fiscal deficit, improve macroeconomic management and the overall management of the public funds by moving towards a balanced budget.

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The main objectives of FRBM Act are:-

1. To reduce fiscal deficit.2. To adopt prudent debt management.3. To generate revenue surplus.

OMO: Open Market Operations. The buying and selling of government securities in the open market in order to expand or contract the amount of money in the banking system. Open market operations are the principal tools of monetary policy. RBI uses this tool in order to regulate the liquidity in economy.

CAC: Capital Account Convertibility. It is the freedom to convert local financial assets into foreign financial assets and vice versa. This means that capital account convertibility allows anyone to freely move from local currency into foreign currency and back, or in other words, transfer of money from current account to capital account.

‘Swabhiman’, the financial inclusion scheme, comes under the purview of which ministry?

Ministry of Finance.

Which among the following does the RBI not decide? (a) CAR (b) CRR (c) Base Rate (d) Bank Rate. - Base rate is decided by commercial banks, not the RBI.

Which of the following organizations is the Mutual Fund Market regulator? (a) AMFI (b) SEBI (c) CIBIL (d) CRISIL. SEBI is also known as Capital regulator or Mutual funds regulator or Market regulator. SEBI is also created investors protection fund and SEBI is the only organization which regulate the credit rating agencies in India such as CRISIL and CIBIL.

What is understood by Fiduciary Issue of currency?- The issue of currency notes without

keeping gold or silver as deposit.

‘Fiat Money’ is the currency that a government has declared to be legal tender, despite the fact that it has no intrinsic value and is not backed by reserves. Historically, most currencies were based on physical commodities such as gold or silver, but fiat money is based solely on faith.

Collateralized Borrowing and Lending Obligation (CBLO) –

CBLO is an RBI approved money market instrument which can be issued for a maximum tenor of one year. CBLO as a product has been conceived and developed by Clearing Corporation of India, CCIL, for the facilitating deployment in a collateralised environment.

Customs Duty is a type of indirect tax levied on goods imported into India as well as on goods exported from India.

Palakkad district in Kerala was the first district in the country to achieve total financial inclusion.

Infosys is the first Indian company to trade on NYSE Euronext London and Paris Markets.

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BRICS Brazil, Russia, India, China, South Africa. CAGR - Compounded Annual Growth Rate.

SX40 – Index of India- SX40 is the flagship Index of MCX-SX. A free float based index of 40 large cap - liquid stocks representing diversified sectors of the economy. SX40 is designed to measure the economic performance with better representation of various industries and sectors based on ICB®, leading global Industry Classification system from FTSE. The Index is devised to offer cost-effective support for investment and structured products such as index futures and option, index portfolio, exchange traded funds, Index funds, etc

SX40 is designed to be a performance benchmark and to provide for efficient investment and risk management instrument. It would also help in structuring passive investment vehicles. Index Launch: February 11, 2013. Base Date: March 31, 2010, Base Value:10,000 Index Basket Recasting: Semi-Annually.

US Federal Reserve- Central Bank of USA recently in news regarding Sub – Prime Crisis

Chairman –Janet Yellen ( First Women)

Multi Commodity Exchange (MCX)

has recently received in principle

sanction from SEBI for

Launches Currency Futures and equity trading.

Charge to be created for demat

shares offered to the bank as

security

Lien

British Government has recently

announced nationalization of

‘Bradford & Bingley ‘ (B&B)

Contribution of services sector in

GDP

60% approximately.

State Bank of Indore & The Bank

of Rajasthan Ltd. – State Bank of Indore (merged with SBI) and Bank of Rajstan (merged with ICICI Bank) has been recently excluded from second schedule of RBI Act.

RIL, Largest Gas producer in India Reliance Industries Ltd (RIL) is top Indian Company as per Forbe Mangazine.

IFRS IFRS-Innovative Financial Reporting Standards- is a set of accounting standards developed by the International Accounting Standards Board (IASB). Global Standards for preparation of financial statements of public companies.

118

Wal Mart Wal Mart is top Retail chain in USA.

Samsung Samsung is a Korean electronics company.

Ikea Is Swidish Furniture Company entering in India.

Issue of No-Objection Certificate In case of receipt of request for transfer of borrowal account, either from the borrower or from a bank / financial institution, which proposes to take over the account, the consent or otherwise i.e. objection of the Bank, if any, will be conveyed within 21 days from the date of receipt of request.

SWIFT Society for Worldwide Interbank Financial Telecommunication. It operates a worldwide financial messaging network which exchanges messages between banks and other financial institutions.

Tobin tax Suggested by Nobel Laureate economist James Tobin, was originally defined as a tax on all spot conversions of one currency into another.

Infrastructure Finance Companies Net owned funds of Rs. 300 crore or above

minimum credit rating ‘A’ or equivalent of CRISIL, FITCH, CARE, ICRA or equivalent rating by any other accrediting rating agencies iv) CRAR of 15 percent (with a minimum Tier I capital of 10 percent).

Minimum of 75 per cent of its total assets should be deployed in infrastructure loans.

Failed Investment Banker due to

financial crisis in USA

Lehmen Brothers

First Asset Reconstruction

Company in India

ARCIL, Sponsored by SBI, IDBI and ICICI Bank.

NEFT No minimum and maximum limit for doing the

fund transfer transactions.

State Bank of Saurashtra has been

merged with SBI.

On 13/08/2008

If total business of the PSB is more

than 3 lac crores. RBI has permitted to appoint three Executive Directors (ED)

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‘Alang’ is associated with Ship Breaking Industry- Place in Gujarat

‘Pipavav’ is associated with Ship Building Industry- Place in Gujarat

Share holding pattern of Regional

Rural Bank (RRB)

Central Govt. 50% State Govt. 15% Sponsoring Bank 35%.

UREM State Govt. notifies the places for deposit of original title deeds for creation of UREM.

Memorandum of Association Company’s charter defining scope and object of the company.

Articles of Association Bye Laws or Regulations which controls internal management and specify powers of the Directors / Authorised Officers of the company.

SB a/c Interest Deregulated wef 25.10.2011

It is notified by RBI that payment of interest on savings bank accounts by scheduled commercial banks would be made on a daily product basis with effect from April 1, 2010. However, periodicity for payment of SB interest will remains same. i-e Half yearly - March & Sept.

Banking Ombudsman Limitation of one year from cause of action.

If interest rate increased during the

year, the current market value of

existing Govt. Security

Falls or decreases.

One rupee note is signed by Secretary, Ministry of Finance & issued by GoI.

Securitization Company Minimum capital requirement Rs.200.00 crores. Securitization is not applicable to Pledge, unpaid vendors, Aircraft / Vessels and Agri Land.

Stamp duty on sale certificate is applicable as per respective State Stamp Act Rules.

District Consumer Council (is different from Consumer

Forum)

Collector is ex –Officio Chairman and minimum two meetings to be held in a year.

Director of Bank and CMD Director of the Banking Company can hold office not more than 8 years. CMD 5 years.

Lok Adalat Civil disputes can be settled under Lok Adalat mechanism and monetary ceiling is Rs.20/- lacs.

Unclaimed dividend Unclaimed dividend remaining unpaid or unclaimed for a period of 7 years from the date of such transfer shall have to be transferred to ‘ Investor Education and Protection Fund’ .

Railway Is the biggest Public Sector unit/employer in India.

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Autonomy to public sector banks CRAR 9% or more net NPA less than 4% net profit for last 3 years owned funds of Rs. 300 crores or more.

‘ Project Jharkhand ‘ Launched by HDFC bank and IT enabled financial inclusion.

Banking Amendment Bill 2012 The cap on voting rights for investors in private sector lenders will consequently rise to 26 per cent from 10 per cent. In public sector banks (PSU) banks, the cap on voting rights has been raised to 10 per cent from 1 per cent.

The Competition Commission of India to decide on mergers and acquisitions.

Life Insurance Corporation To mop up resources through disinvestment, the finance ministry has upped the limit for the state-run Life Insurance Corporation (LIC) to buy equity stakes in companies up to 30%. notification was issued to allow LIC to hold up to 30% in listed/unlisted companies against the current cap of 10%. Paid up capital of the company.

Computer Awareness -

“Please refer to CBS Fast Paths and various Product Codes without

fail.”

Li Fi Li Fi is a wireless optical networking technology that uses light-

emitting diodes (LEDs) for data transmission.

Benefits of LiFi: Higher speeds than Wi-Fi. 10000 times the frequency spectrum of radio. More secure because data cannot be intercepted without a clear

line of sight. Prevents piggybacking.

Cyber Forensic

Laboratory India’s first Cyber Forensic Laboratory (CFL) was inaugurated on 11 August, 2013. This CFL has been established at Tripura High Court at Agartala.

Guardian Microsoft India introduced “Guardian” a new safety application.

Finacle 11E A new Advanced universal banking solution that simplifies banking operations launched by Infosys is “ Finacle 11E”.

KitKat KitKat is the name given to the new Android 4.4 operating system.

Byte Eight digit binary number is called a byte.

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BASIC Basic can be used for scientific and commercial purpose. FORTRAN is not a programming language.

Which software giant

is to buy Nokia

Company?

Microsoft

Blue tooth 'Blue tooth' technology allows - Wireless communication between equipments.

Meghraj is cloud computing project by Govt. of India.

Android Android is a operating system.

Windows New version “Windows 8.1”

e-inclusion Computer Literacy of Rural Womens and SC Womens

Twitter & Face Book Twitter” the popular phenomenon of social networking, has been named the “Top English Word” of the year 2009. In 2010 “ Face Book ‘ has became most popular social networking website.

Operational Risk Risk arising from failure of computer system and loss of data is operational risk.

Nano ‘Nano’ stands for one billionth part.

Bug An error in software designing which can even cause a computer to crash is called “bug”.

Debugging The process of eliminating pro-gramming faults is called “debugging.

Data Encryption Data encryption means protecting data in data communication system.

COBOL Is a business language

AKSHARA Is a Hindi software

ALU Part of processor which performs mathematical calculations.

5th

Generation Computers

Feature is artificial intelligence

Spam The unwanted or non-requested e-mails are called “spam”.

Hacking Cyber crime. Black hats – Professionals who spend all their time attacking other systems. White hats – Specialists defending systems

Grey hats – Non professionals who hack as hobby and out of patriotism.

Firewall Technology Software that restricts the access to and from network and is designed to protect from outside intrusion is called ‘ Firewall Technology ‘.

In computer system ,

security is important

for

Securing the Data.

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SMARTQUILL is Computer Pen

PIN in ATM is Personal Identification Number, 4 Digit

ISDN Integrated Services Digital Network

IDRBT Institute for Development & Research in Banking Technology at Hyderabad.

PARAM series of

Super Computers The super computer manufactured in India by CDAC, Pune is PARAM, PARAM 10000 and PARAM Padma . Now, they are developing Maha Param Padma.

Digital signatures

means: A coded confirmation in electronic form attached to an electronic record.

Cheque Truncation Dr. R. B. Barman

Committee

Images of cheques to be preserved for 8 years. A centralised agency per clearing location will act as image warehouse for banks. Physical cheque is truncated within collecting bank -- at which point within the bank is left to the discretion of the bank -- it is the responsibility of the collecting bank to verify that physical cheque is prima facie a genuine one.

e-Commerce Sale and purchase effected through Internet.

Phishing Phishing are attempts made by Individuals to obtain confidential information from you by falsifying their identity.

Go Mumbai Is Smart Card used for travel in Bus and Railway in Mumbai. Introduced by Kaizan Automation Pvt Ltd.

FINO FINO is Biometric Smart Card introduced by Financial Information and Network Operations Ltd.

Biometric means where the security uses the fingerprints of the person to allow access to the machine or room.

Satyam Computers

Ltd

Violation of Corporate Governance norms. Corporate fraud case.

Debit Card

Credit Card Buy now and pay now. Immediately a/c is debited. Buy now and pay later.

GSM Global System for Mobile Communication

CDMA Code Division Multiple Access

123

The majority of

computer crimes are

committed by.

Insiders

The common name

for the crime of

stealing passwords is

Spoofing .

Malicious Software is

known

as Malware

e-mail virus. In 1999, the Melissa virus was a widely publicized.

Trojan Horse A program that performs a useful task while simultaneously allowing destructive acts is called as Trojan horse.

Cracking Refers to electronic trespassing or criminal hacking

Biometrics is the measurement of things such as fingerprints and retinal scans used for security access.

Spybot is the name of an application program that gathers user information and sends it to someone through the Internet.

3 G / 4 G Third Generation / Fourth Generation

IFSC Code Stands for ‘Indian Financial System Code’ 11 Digit Code.

GEFU Stands for ‘Generic External File Upload’

Search Engine Programs that help in locating a website

UTR number Denotes ‘Unique Transaction Reference number’. Modem Modem stand for Modulator demodulator

“RUPAY” “RuPay” is the name given to ATM Card to be launched by National Payment Corporation of India (NPCI) for no frill a/c holders in association with Banks.

Travel Cards TATA Travel Cards- a prepaid card in 9 currencies launched with AXIS Bank.

AKASH. Akash is a cheap tablet PC

Aakash, the world’s lowest priced (Rs 2,250 per unit) touch-screen computing and internet access device, which will allow people with humble means a chance to access the same set of web information which the rich access through more sophisticated devices, was launched on October 5, 2011. To start with, the device will be made available to students at 50% subsidy (Rs 1,125).

Datawind, is designing, developing and manufacturing Aakash in collaboration with IIT-Rajasthan.

124

Kim Jong –II Kim Jong –II is a Malware in the name of North Korian Leader.

Information

Technology Act

Information Technology Act came into existence in 2000.

World’s first

‘biological Computer-

Scientists in the US claim to have developed the world’s first biological computer that is made from bio-molecules and can decipher images encrypted on DNA chips.

The K Computer A Japanese supercomputer has broken its own record as the world’s fastest machine by performing 10 quadrillion calculations per second. The K Computer, which has more than 88,000 central processing units—the computer’s brain—compared with fewer than four in the average desktop, smashed its own record of just over 8 quadrillion calculations during an experiment in October 2011.

‘Caffeine’ Google unveiled a new version of its search engine called ‘ Caffeine’.

IMPS Interbank Mobile Payment Service is an instant interbank electronic fund transfer service through mobile phones. Both the customers must have MMID (Mobile Money Identifier Number).

Various Important Committees-

Saraf Committee RTGS payment system

Kapoor Committee Simple application for SSI

R V Gupta Committee Agriculture and SKCC

C B Bhave Committee Dematerialization

K B Shere Committee Electronic Fund Transfer

C Rangarajan Committee Computerization

Chairman: Shri Deepak Mohanty The Working Group on Balance of Payments Manual for India

Vaghul Committee Money Market

Goiporia Committee Customer Service

Narsimhan Committee Debt Recovery Tribunals (DRT)

Gangadharan Committee Bank Mergers

Mitra Committee Due Diligence and Legal Compliance and Bank Frauds.

Malegam Committee was appointed by the RBI, is looking into the regulation of Micro Finance Institutions.

Rajan Committee On financial reforms

Ghosh Committee Recommended for obtaining photo of depositors

Shetty Committee Syndication of Advances.

125

Dr. R B Barman Committee Cheque Truncation

S S Tarapore Committee Capital Account Convertibility Abhijeet Sen Committee Modalities of Commodity Trading Dr. S A Dave Committee SEBI Mutual Fund Advisory Committee Raghuram Ranjan Committee On Financial inclusion Deepak Mohanty Committee Chairman of RBI Panel to review BPLR

structure, recommended introduction of base rate system.

Naresh Chandra Committee 2003 & Irani

Committee 2005. Limited Liability Partnership Act 2008 . Implemented wef 09-01-2009 as per recommendations of these committees

Mr. A. K. Khandelwal Committee Recruitment and succession as well as retention of best performers through performance-linked incentives and grooming such officials for leadership roles.

P. Vijaya Bhaskar Rao Working Group to Review the Business

Correspondent Model.

Shri V. K. Sharma Committee Interest Rate Futures. And also Working Group to Review the Credit Guarantee Scheme of the Credit Guarantee Fund Trust for Micro and Small Enterprises.

Shri P. Vijaya Bhaskar Branch Authorisation Policy.

Dr. K. P. Krishnan Report of the Committee on Comprehensive Regulation of Credit Rating Agencies.

Title Chairman

Report of the Working Group to Review the existing prudential guidelines on restructuring of advances by banks/financial institutions

Shri B. Mahapatra

Report of the High Level Steering Committee for Review of Supervisory Processes for Commercial Banks

Dr. K.C. Chakrabarty

Report of the Working Group on Savings during the Twelfth Five-Year Plan (2012-13 to 2016-17)

Dr. Subir Gokarn

Report of the Committee to Re-Examine the Existing Classification and Suggest Revised Guidelines with Regard to Priority Sector Lending Classification and Related Issues

Shri M V Nair

Report of the Expert Committee on Licensing of New Urban Co- Operative Banks

Shri Y.H. Malegam

Working Group on the Issues and Concerns in the NBFC Sector Usha Thorat

126

Report of the Committee to Review the Facilities for Individuals under Foreign Exchange Management Act (FEMA), 1999

K. J. Udeshi

Report of the Committee on Customer Service in Banks M. Damodaran

Report of the Working Group on Securing Card Present Transaction Gowri Mukherjee

Report of the Working Group on Reporting of OTC Interest Rate and Forex Derivatives

Shri P Krishnamurthy

Report of the Working Group on Introduction of Financial Holding Company Structure in India

Smt. Shyamala Gopinath

Report of the Working Group on Operating Procedure of Monetary Policy

Shri Deepak Mohanty

High Level Committee for Preparation of the Information Technology Vision Document 2011-2017

Dr K C Chakrabarty

Report of the Internal Group on Introduction of Credit Default Swaps for Corporate Bonds

R.N. Kar

Working Group on information security, electronic banking, technology risk management, and cyber frauds

Shri G. Gopalakrishna

Report of the Working Group on Balance of Payments Manual for India

Shri Deepak Mohanty

Report of the Working Group to Review the Credit Guarantee Scheme of the Credit Guarantee Fund Trust for Micro and Small Enterprises

Shri V. K. Sharma

Report of the Committee on Comprehensive Regulation of Credit Rating Agencies

Dr. K.P. Krishnan

Report of the Group to review the extant Branch Authorisation Policy Shri P.Vijaya Bhaskar

Report of the Working Group on Benchmark Prime Lending Rate (BPLR)

Shri Deepak Mohanty

Report of the High Level Committee to Review Lead Bank Scheme Usha Thorat

Report of the Working Group to Review the Business Correspondent Model

Shri P Vijaya Bhaskar Rao

Report of the High Level Group on Systems and Procedures for Currency Distribution

Usha Thorat

127

Report of G20 Working Group on Enhancing Sound Regulation and Strengthening Transparency

Dr. Rakesh Mohan and Mr. Tiff Macklem

Report of the Committee on Financial Sector Assessment Dr. Rakesh Mohan

Report of the High Level Committee on Estimation of Savings and Investment

Dr. C. Rangarajan

Report of the Technical Advisory Group on Development of Housing Start-Up Index in India

Prof. Amitabh Kundu

Report of the Committee on the Global Financial System (CGFS) on Capital Flows and Emerging Market Economies

Dr. Rakesh Mohan

Task Force For Diamond Sector Shri A.K. Bera.

Report of the Working Group on Defraying Cost of ICT Solutions for RRBs

Shri G. Padmanabhan

Report on Interest Rate Futures Shri V.K. Sharma

Report of the Internal Working Group to Study the Recommendations of the NCEUS Report

Shri K.U.B. Rao

Report of Working Group on Rehabilitation of Sick SMEs Dr. K. C. Chakrabarty

Report of the Working Group to Examine the Procedures and Processes of Agricultural Loans

Shri. C.P. Swarnkar

Report of The Working Group on Preparing Guidelines for Access to Payment Systems

Shri. R. Gandhi

Report of the Committee on Fuller Capital Account Convertibility S.S. Tarapore

128

Recalled questions of previous exams- (Please update the

answers whereever required due to recent changes)

□ When Ombudsman’s award is accepted by the customer, the bank is to implement the award within : 30 days. □ Corporate Debt Restructure system is not applicable for : Single lender accounts. □ Real Time Gross settlement system takes care of which risk : Systemic risk and settlement risk □ Loan assets are classified by the banks on the basis of : By status of security □ Under SARFAESI Act 2002 the banks give notice for payment of due amount to the

borrower / owner of charged assets within 13(2) of the Act : 60 days

days, otherwise action will be initiated u/s

□ The minimum & maximum period of certificate of deposit is : 7 days, 12 months □ Banks print cheque books having similar particulars. The format of cheque is prescribed by which Act : It is a practice □ Which crossing takes away the feature of assumption of defective free title available to the transferee : Not negotiable □ Bearer uncrossed cheque can be paid to whom : To the bearer □ The increasing foreign exchange reserves in India are costly because : Funds are idle and there is fluctuation risk □ Who is appointed to tackle public complaints against the public authorities : Ombudsman □ What is NOSTRO: A bank’s account abroad with another bank

□ On, other than a negotiable instrument, what is the time period for payment of stamp duty, if the document is executed outside India : 3 months □ Within priority sector, a retail trader other than in essential commodities can be allowed an advance up to : Rs.20 lac □ FCNR (B) deposit can be accepted by banks in currencies : 6 □ May I help you counter is to be provided by bank branches other than : Small branches □ Interest subvention on SME exporters is available to the extent of : 2% □ A firm is allowed a limit of Rs.1.40 lac at 30% margin. It wants to avail the limit fully. How much will be the value of security : Rs.2 lac □ Statutory Liquidity Ratio provisions for banks are as per Section Banking Regulation Act 1949

of : 24,

□ What is the maximum loan that can be allowed to a dealer in cattle feed / poultry feed, within priority sector : Rs.40 lac □ An NRI can open a joint account with a resident in case of Ordinary.

accounts : Non-resident

□ What type of charge is applicable on loan against term deposits in a bank : Assignment □ RBI keeps on changing repo / reverse repo rate / CRR with the objective of : Regulation of liquidity to control inflation □ Garnishee Order is not applicable on : Un-used cash credit or overdraft limit □ What is the periodicity for submission of R-Returns to RBI : Fortnightly □ The facility of nomination is not available to Trust account because it is Non-individual `

account :

□ A person wants to open an account which his wife should be able to operate only after his death. What type of account he should open : Former or survivor □ In B region, the reply to letters in Hindi is to be given to the extent of % : 100% □ Within priority sector target of 40% of ANBC or CEOBE, whichever is higher, the sub- target for weaker section is : 25% □ In case of a jointly operated joint account, the nominee can obtain payment, when : none of the account holder is alive □ Call money deposit is part of the sector : Organised sector □ The long term liability to tangible net worth ratio implies : Long term solvency of the firm or capacity of the firm to pay long term debt. □ Current ratio implies : Capacity of the firm to pay current liabilities. □ Working capital requirement of a firm is required to be met through : Short term sources and surplus of long term sources over long term uses □ Star series notes relate to : Defective notes □ The target for DRI advances is : 1% of previous year’s outstanding loans □ Who cannot become a partner as per Supreme Court judgement : HUF □ What is the maximum period for which an account classified as sub-standard, can remain : 12 months □ A company wants to electronically pay the dividend to large no. of its shareholders, which include small amounts also : Electronic Clearing Services – Credit (ECS-Credit) □ The terms used for hiding money to avoid tax is : Money laundering □ A cheque is written in different hand-writings and different inks : It will be paid □ Opening of non-resident accounts by has been allowed by RBI : RRBs □ Bailment of goods by a person to another person, to secure a loan is called : Pledge □ When mortgage is created by a person by deposit of title deed orally, it is called mortgage : Equitable □ Which crossing is not a general crossing : When name of bank is written within or without parallel lines. □ Buy now and pay later is the facility available under : Credit card □ A financial statement that provides information regarding where the funds have come and where these have been used, is called : Funds flow statement □ Who can open NRE account : NRI □ The minimum capital adequacy ratio implemented in India, by RBI is % and as per Basel II recommendations it is % : 9%, 8% □ A mandate holder for a current account has died and a cheque signed by him is presented for payment after his death : The cheque shall be paid, if not dated subsequent to date of death or prior to the date of mandate.

□ The true owner of a cheque has been deprived his right by collection of the cheque for a different person. This is called : Conversion □ A bank branch receives a counterfeit note of Rs.1000, which customer wants back. What the bank should do : To be impounded and not to be returned in any circumstances. □ Banks provide term loans and deferred payment guarantee to finance capital assets like plant and machinery. What is the difference between these two : Outlay of funds. □ Islamic banking has the features of : Conservative banking □ When rate of interest is expressed by adjusting the impact of inflation, this is called : Real rate of Interest

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□ For the purpose of creation of equitable mortgage, the place for deposit of the title deed is notified by : State Govt. □ A prudent investor makes investment in shares on the basis of : Price-earning (PE) ratio □ When the rates are rising, the growing economy : Gains □ For FCNR (B) deposits, the exchange risk is born by : Bank, accepting such deposit. □ As per recent RBI/Govt. guidelines, pensioners can open account jointly with: with spouse, to be operated as either or survivor. □ Amount of maximum loan given to micro and small enterprises are covered under CGFTMSE scheme : Rs.100 lac □ Apiculture relates to : Bee-keeping □ A cheque written in different inks and handwriting is presented, for payment : it will be paid if otherwise in order □ Which of the following forms will be used for allowing exemption to a depositor aged 61 years : Form 15 G □ An enterprise will be treated as medium enterprise providing services, if the investment in is above Rs.2 cr and up to Rs. _: equipment, 5 cr. □ For acquiring securities charged to the bank under SARFAESI Act, a notice of required to be sent to the owner of the securities: 60 days

days is

□ The drawer of a cheque wants that the endorsee should not get a defect free title when he receives an endorsed cheque. What type of crossing would be required : Not-negotiatiable crossing. □ The crossing on a cheque is required to be cancelled. Who can do so: Drawer □ A cheque signed by an agent is presented for payment, after his death. What will the paying bank do : Cheque will be paid in normal course if it is not dated subsequent to date of his death. □ A bank can sell its NPA account to another bank, if the NPA is held by the seller bank with it for month as NPA : 24 □ Unutilised overdraft limit of a borrower is available and a garnishee order is received : Order is not applicable □ In educational loan no collateral security or 3rd party guarantee will be obtained, if the amount of loan is maximum up to: Rs.4 lac. □ A loan associated with a short duration crop, becomes sub-standard after remaining special mention account for a period of : two crop seasons □ Interest subvention of 2% is available to banks from Govt. when the short term production loan up to Rs. farmer: 3 lac, 7%

lac in agriculture is allowed by banks at % rate of interest to

□ Under liberalized remittance scheme what is the maximum amount that can be remitted by a resident person abroad for unspecified person: $ 2.50 lac in a financial year. □ Weaker persons of the society available deposit and loan services from banks, which is called : Financial inclusion □ Customer day is observed by banks on th of the month : 15 □ Minimum no. of days for which term deposit can be made by banks : 7 days □ Appeal against the award given by the Ombudsman can be made by the bank within days of date of : 30 days, receipt of acceptance from the customer. □ The format of cheque is prescribed in which Act : It is only a practice.

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□ If a fraud takes place in a bank branch. Report is sent to the controlling office on form : FMR 1 □ The amount in a cheque is written differently in words and figures and amount written in words is higher of the two : Amount written in words will be paid. □ While paying a bearer cheque, signatures are obtained on the back side of the cheque. Why ? : As evidence of payment □ Bank note which is misprinted by RBI is replaced by issuing a note : Star series □ In CDR category-1, what type of loan accounts are eligible : Standard & sub-standard. □ Sales / debtor ratio is called collection of debtors.

ratio. It indicates : Debtor-turnover, efficiency of

□ Current ratio indicates : Capacity of a firm to meet its current liabilities. □ Conversion means : unauthorized intervention in the property of another person □ As per Official language policy for B region, branch target to reply in Hindi letter received in Hindi is : 100% □ Provision for standard accounts in agriculture and SME accounts is to be made at : 0.25% □ What is the right of nominee in case of term deposit that has not matured : To obtain premature payment and not raise loan against the security of such term deposit □ Preshipment credit is available in which type of letter of credit : Red clause LC. □ The quarterly financial results of companies and banks are to be declared / published under directions provided by : SEBI □ RBI injects liquidity through : Repo □ What is full form of FRBM : Fiscal Responsibility & Budget Management Act □ Relationship between bank and customer in case of goods left by mistake in custody of the bank: Trustee & beneficiary □ Priority sector target for foreign banks having less than 20 branches for 2015-16: 32% of ANBC □ NSC pledged with post office with nomination in favour of XYZ. Bank’s claim against these NSCs : Will have priority □ Legal status of nominee is that of a : Trustee for legal heirs □ M, a minor admitted for benefits in a firm wants to withdraw from the firm on attaining majority. How much time is available to him to do so : 6 months from date of majority or 6 months from date of information to him that he was admitted for benefits, whichever is later. □ Loan to minor can be given in the following case (a) against DBD (b) against LIC policy (c) in the name of minor (d) in the name of father : in the name of father □ Who cannot be a partners (a) HUF (b) illiterate (c) Blind person (d) company : HUF □ Money to be deposited by A in the account of B. A has informed that B has become insane : can be deposited with consent of the family members (i.e. guardian) □ Mortgagee enjoys the income of the mortgaged property in case of which mortgage : Usufructuary □ Hypothecation becomes pledge : when goods are given for possession to the bank, by the borrower. □ Which type of fraud case is not to be reported : Theft and burglary. □ There is excess cash with the cashier while closing the cash balance in the evening. It is to be deposited in : Sundries account excess cash received account (credit balance). □ Which document is required to be attested (witnessed) (a) mortgage deed (b) pledge agreement (c) Hypothecation agreement : Mortgage deed

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□ No. of bank branches in India is (a) above 40000 (b) above 50000 (c) above 60000 (d) above 100000 : Above 100000 □ A, B and C want to open a joint account with the provision that after death of any of them, the money should not be paid to any legal heir, what mode of operation should be opened : Either or any of them. □ ECB can be raised under automatic approval by (a) companies (b) firms : Companies □ Borrowing power of Board of Directors is described in: Articles of Association. □ Doctorine of Ultravires borrowing relates to : Borrowing by a company for an activity, which it is not authorized to undertake as per its Memorandum of Association □ The no. of members in a SHG in normal cases : 10-20 □ Authorised capital is Rs.10 lac. Paid up capital Rs.6 lac. The loss of previous year is Rs.1 lac. Loss in current year is Rs.2 lac. The tangible networth is : Rs.3 lac □ Net working capital is Rs.80000. Current ratio is 3:1. The current assets are : 120000 □ Right to retain goods is called : Lien □ For obtaining loan against shares, the Charge on shares : Lien □ A director of the bank wants to raise loan from your bank against (a) FDR of other bank (b) share of same bank(c) surrender value of Life Policy. Loan can be given against : Surrender value of Life Policy. □ Bill of lading, Railway Receipt are negotiable instruments under (a) NI Act (b) Sec 3 of Transfer of Property Act (c) Sec 137 of Transfer of Property Act (d) Sale of Goods act : C □ Keeping goods in safe custody is as per provisions of (a) NI Act (b) Indian Partnership Act (c) Indian Contract Act : C □ No dues certificate in case of agricultural advances is exempted up to a loan of: Rs.50000 □ Liability of a coparcener in case of loan raised by HUF is : Restricted to his share in HUF property/assets □ In KYC guidelines, the small account where simple KYC is applicable are those account where the amount deposited in the account is restricted to (a) Rs.50000 (b) Rs.1 lac : Rs.1 lac □ In case of SMEs, the registration is mandatory in case of (a) medium enterprises in servicing (b) small manufacturing enterprises (c) manufacturing medium enterprises : C □ What is the maximum amount of loan for obtaining guarantee under CGTMSE : Rs.100 lac □ Loan system of credit delivery is not applicable in case of : Software industry □ To sell an NPA, the account must remain in the books of seller bank : for 24 months as NPA □ One of these is an indirect rate (a) one $ = Rs. 39.56 (b) one pound = Rs. 89.56, (c) one yen = Rs. 0..30 (d) Rs.100 = $ 2.60 : D □ Which crossing is not recognized by NI Act (a) Special (b) payee’s account (c) not negotiable : B □ Which among the following can open an Resident Foreign Currency account (a) NRI (b) Resident (c) Erstwhile NRI now resident (d) none : C □ A loan document is signed by one partner on June 15, 2007, by 2nd partner on June 21 and by 3rd partner on June 29. The period of limitation will start from : June 30, 2007 □ In CAMLES, the word C stands for : Capital Adequacy Ratio □ A partner wants to retire from the firm XYZ. He has to (a) get consent of other partners (b) has implied authority to retire (c) has to give public notice (d) can retire when desired by him by giving notice to other partners : A

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□ Service Area approach guidelines withdrawn by RBI except of Govt. sponsored Scheme as per recommendations of : VS Vyas Committee □ Govt. shareholding in public sector banks cannot be below : 51% □ For micro & small enterprise, the value of is excluded while calculating the value of plant and machinery or equipment : Land & building. □ Registration of partnership firm is not compulsory but banks prefer registered firms because (a) they can file suit against them (b) creditors can file suit against them (c) they can file suit against their debtors : C □ The limitation period u/s 138 of NI Act begins from : Date of cause of action □ Ombudsman can ignore the case of complaint where (a) advocate of applicant has appealed (b) complaint is of frivolous nature : B □ A cheque is issued by a company as “pay yourselves”. A clerk from the company comes and signs on behalf of the company and requests for preparation of a demand draft : Cannot be prepared. □ Internal rate of return is : A discount rate, at which the net present value of a project is Zero. □ Small Service industry investment in Equipments : above 10 lakhs but upto 2 crore □ Hypothecation defined under which act : SARFAESI Act. □ NPA Can Be Sold By Keeping For How Many Days : 2 Years □ Remittance of FCNR(B) proceeds to III Party abroad – If AD satisfied, these can be made on the request of the depositor. □ Oversold position will give loss when the value appreciating □ Sengupta committee related to : Private sector contribution to defence sector □ Radhakrishanan Committee related to : Agriculture indebitedness. □ The committee recommended concurrent audit : GHOSH COMMITTEE

□ Restructured a/c classified standard if the operation in the account is satisfactory for a period of : one year □ In case of failure of a customer to meet its commitment in settling his dues in time will come under which type of risk : Settlement Risk □ Which approach does not Operation Risk : Internal risk assessment based □ When an account becomes NPA and realizable value of security is directly treated as loss asset : <10 % □ ROI on Adhoc PCL : Same Rate Of Normal PCL

the account is

□ Un Registered Partnership Firm - What is the repercussion: Firm can sue the others □ Whether Minor can nominate ? no □ What charge to be created for demat shares with bank as security : Lien □ Microsoft has instituted its base/ facility office at: Hyderabad

□ What is the position of a Nominee ?: The money will be paid to nominee after death of depositor □ Methodology of Waiver/Remission of loan of Director of the bank: After permission of RBI □ Under LRS how much money a resident can remit in year : USD 250000 in a financial year. □ For the purpose of Medical Treatment, how much amount can be remitted freely : USD 100000 □ How much amount a company can invest abroad : 400% of net worth

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YOU ARE REQUESTED TO SEND THE” RECOLLECTED

QUESTIONS” BY E-MAIL FOR THE BENEFIT OF OTHERS.

Santosh D. Bagale

Chief Manager, Talegaon Dabhade Branch.

ZONAL COUNCIL MEMBER,

SYNDICATE BANK OFFICERS

ASSOCIATION, MUMBAI

Mobile-09969573721 ,

e-mail – [email protected]

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