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Interview
Magazine
for
IBPS PO IV
2 14
Perfect for Upcoming IBPS PO 2014 Interview
Publication Date 24thDec, 2014
Edited by Team ExamPundit
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Interview Preparation
An invitation for an interview shows that, on paper, you are the right person required by the
organisation for the vacant position. In fact, it is estimated that 80% of candidates are rejected at
the application stage so you are really more than three quarters of the way towards getting the job!
Larger organisations will have interviewers who are often personnel professionals, or who are
trained and experienced interviewers, so expect the interview to be very structured to obtain the
maximum from you. In smaller firms you are more likely to be interviewed by a partner who may not
be a trained interviewer. If you are confronted by a 'bad' interviewer you will have to work hard to
use the questions as a means of conveying the points you wish to make. It can be a good idea to try
to steer the conversation towards the topics you have particular strengths in, highlighting your good
points.
There are several different types of interview/questioning techniques: -
The straightforward chronological interview, where you are asked questions around your CV
/ Application form
Criterion referenced interviews, where you will be asked to give examples of how you meet
their criteria e.g., examples of teamwork, negotiating, leadership
The off-the-wall questions where you might be asked some bizarre questions. This is to see if
you can think on the spot and how creative/logical you are.
The pressurised interview where your views will be challenged (or even ridiculed) and you
might feel like you are being goaded into an argument. If this happens to you do not lose
your cool, it is to test how you react under extreme pressure and to see if you can hold your
own without starting a fight or being reduced to tears.
Preparation is essential if you want to do well. Have a look at the checklist:
Stage 1 - Preparation
Re-read your resume.
Prepare questions to ask and to be asked
Work out clothes to wear Rehearse interview
Anticipate the obvious questions during the interview
Work out a strategy for dealing with stress
Read vacancy details, employer's literature - what they are and what they want
Know where the interview will take place
Stage 2 - First Impressions Count
Arrive in good time
Make a good entrance
Body language - handshake, posture, eye contact
Smile
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Stage 3 - The Interview
Be yourself
Be honest
Be prepared to talk - but not too much
Don't be afraid to ask for clarification Illustrate your answers with examples
Be ready to sell yourself
Be interesting
Stage 4 - The Final Stage
Know when the interview is over - read employer's body language
Thank him/her for his/her time
Learn from the experience - ask for feedback if necessary
Questions You May Wish To Ask
The Organisation
Major current projects
Future developments
Work
What you would be doing
How long for
Typical projects/timescales
Variety of work
Training
Training offered/possible
Help with professional qualifications
Colleagues
Who would you work with?
Location
Where would you be based?
How much travel/mobility
Questions You Can Prepare For
Tell us about yourself
Why did you choose your degree and what have you gained from it?
What has been your most important achievement in life so far? Why?
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What are your strengths and weaknesses?
Why have you applied for this job?
What do you have to offer us?
What are the current issues in this sector of work?
What experience do you have of working in a team and what role did you play in that team?
Describe a project you have successfully completed.
How would your friends describe you?
Describe a situation you have found difficult. How did you overcome it?
What questions would you like to ask us?
Dressing for an interview
Men and Women
Conservative two-piece business suit (solid dark blue or grey is best)
Conservative long-sleeved shirt/blouse (white is best, pastel is next best)
Clean, polished conservative shoes
Well-groomed hairstyle
Clean, trimmed fingernails
Minimal cologne or perfume
Empty pockets--no bulges or tinkling coins
No gum, candy or cigarettes
Light briefcase or portfolio case
No visible body piercing (nose rings, eyebrow rings, etc.)
Men
Necktie should be silk with a conservative pattern
Dark shoes (black lace-ups are best)
Dark socks (black is best)
Get a haircut; short hair always fares best in interviews
No beards (unless you are interviewing for a job as a lumberjack!)
Mustaches are a possible negative, but if you must, make sure it is neat & trimmed
No rings other than wedding ring or college ring
No earrings (if you normally wear one, take it out)
Women
Always wear a suit with a jacket; no dresses
Shoes with conservative heels
Conservative hosiery at or near skin color (and no runs!)
No purses, small or large; carry a briefcase instead
If you wear nail polish (not required), use clear or a conservative color
Minimal use of makeup (it should not be too noticeable)
No more than one ring on each hand
One set of earrings only
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Basic Questions
Introduce yourself.
This is over and over again the first question in an interview. It's the most complicated one if you're
not all set. Keep in mind, the interviewer does not want to hear about your hobbies. Its time for one-minute gist of your years of experience and skills in the context to the job you are looking forward to
get. Sell your professional self.
Why should we hire you?
Most people answer generally, so you need something substantial to stand out. Give genuine
examples that demonstrate you as the best-suited for the position. Highlight your achievements and
undertakings that are relevant to get the job.
Why do you want this job?
Use this occasion to demonstrate how much you know about the company and, most prominently,
how you fit best. Concentrate on challenges in the job and organization to show your comprehensive
knowledge. Spot out things you have done in past job to take care of the similar issues.
What are your weaknesses?
Answer this question to your benefit. "I would turn my weaknesses into strengths," For example, ifmy weakness is lack of tolerance I would counter it by saying; I have learned particular measures to
make sure I remain composed and considerate." Don't pretend that you do not have a weakness.
Why did you quit your previous job?
Never evaluate your previous company, the boss, or colleagues. You should have a fine perceptive of
the job you're applying to twist this question. You may say that, you really enjoyed various aspects of
your previous job and spotlight on how this new job will give you the chance to contribute
meticulously on areas that are essential for the current position.
Where would you be five years from today?
Don't get swayed away by your five-year plan. You are expected to speak about goals related to the
job. This will reveal that you know the industry, the organization and you are looking forward to
grow here.
Remember the interviewer is trying to find if you can play a positive role in the organization!
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1. What do you know by stale cheque?- When the cheque becomes out of date and cannot be
encashed, it is termed as stale cheque. For example, the validity period of any cheque is three
months and when a cheque dated: 10.01.2012 is presented for payment on 10.01.2013, it is
considered as a stale cheque, since the cheque is more than three months old.
2. What do you mean by post dated cheque?- When the date of the cheque is beyond the date onwhich the cheque is presented for payment, the cheque is considered to be post dated. For
example, when a cheque dated: 10.02.2013 is presented for payment on 10.01.2013, it is
considered to be a post dated cheque.
3. What do you know by current chest? - Currency chests are operated by RBI so that they can
provide good quality currency notes to the public. However, RBI has appointed commercial banks
to open and monitor currency chests on behalf of RBI. The cash kept in currency chests is
considered to be kept in RBI and
4. What is meant by minimum balance to be maintained in the accounts? In the case of
savings bank and current account deposits, the banks stipulates a minimum balance to be
maintained. The minimum balance varies from bank to bank and when the balance in the account
falls below the minimum balance then banks debit the account with some penal charges. Some
banks insist quarterly average minimum balance to be maintained instead of regular minimum
balance to be maintained.
5. What do you mean by tax deduction at source? TDS means tax deducted at source. Banks must
deduct tax from the interest paid on the fixed deposit when the interest paid on fixed deposits
to a customer exceeds Rs. 10000/- during the accounting year. TDS is applicable to fixed deposits
only and is applicable to savings bank deposits.
6. What do you mean by weaker sections? - The following categories are termed as weaker
sections namely - small business enterprises; marginal farmers; artisans/village and cottage
industries for whom loans are granted upto Rs. 50000.00; SGSY beneficiaries; SC/ST
beneficiaries; DIR beneficiaries; SJSRY beneficiaries; SLRS; self help groups and people belonging to
minority community.
7. What do you know by MICR? - MICR means magnetic ink character recognition. Nowadays,
the cheques are issued in MICR formats in metropolitan centres namely; Mumbai, Chennai,
Kolkata, Bangalore etc. The MICR code is readable by a reader sorter computer which helps in
quick sorting of the cheques towards immediate adjustment of the amount to be received and paid
by the banks in the clearing house. MICR code consists of the following namely; the cheque
number, name of the city, name of the bank, name of the branch, account category etc. and bankssimply type the amount of the cheque in the MICR portion using scanners so that the sorter
reader is able to read the entire information in regard to the cheque instantaneously.
8. What do you mean by cheque truncation? - Under cheque truncation, the physical cheque is
replaced by the digital image of the cheque after scanning. Once the cheque is truncated the
physical cheque is cancelled and from the moment of truncation only the digital image has life.
The digital image of the cheque which contains the digital signature of a bank officer as to its
authenticity is processed by all banks and payment is effected. Cheque truncation helps in quick
processing of the cheques drawn even on far away places since there is no necessity to physically
move the cheque from one place to another place.
Banking Interview Questions
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9. What do you mean by ECS?- ECS means electronic clearing service and this facility is used
where a large number of small value payments or receipts are to be made or received. ECS can
be used for either debit transactions or credit transactions. When a company wants to pay
dividends to large number of shareholders, they use ECS credit facility and by debiting the
company's account, the shareholders accounts are credited with the dividend amount
instantaneously. Similarly when an accountholder can use ECS debit facility towards effecting
payment to telephone charges each month.
10. What do you mean by bank assurance? Hither to banks were dealing with acceptance of
deposits and lending loans to the customers apart from undertaking certain ancillary services.
Nowadays banks started selling insurance policies of prominent insurance companies by having
tie up arrangements with such companies and banks earn commission for such transactions.
11. What do you mean by Universal banking? - Universal banking is the concept under which
banks can provide various types of services namely; deposits, loans, safe deposit lockers, safe
custody services, dealing with mutual fund schemes, selling insurance policies, selling gold coins,
dealing with issue of shares and debentures etc. Thus at present banks are becoming like asupermarket for all kinds of financial products and such concept is called as universal banking.
12. What do you mean by Regional Rural Banks? - The Regional Rural Banks are relatively new
banking institutions which were added to the Indian banking scene since October, 1975. The
distinctive feature of a rural bank is that though it is a separate body corporate with perpetual
succession and common seal, it is very closely linked with the commercial bank which has
sponsored the proposal to establish it.
13. What do you mean by National Housing Bank?- National Housing Bank was established under
the National Housing Bank act, 1987 as an apex body and the key function of National Housing Bank
is the development of the housing sector and it is a wholly owned subsidiary of Reserve Bank ofIndia. National Housing Bank undertakes the following activities namely; promotion and
development of housing finance companies; regulation and supervision of housing finance
companies and providing both direct finance and indirect finance to housing sector.
14. What do you mean by NABARD? - National Bank for agriculture and rural development was
set up in 1982 as an apex development bank in the field of agricultural finance and rural
development. NABARD is set up by the Government for the purpose of facilitating credit flow
for promotion and development agriculture and integrated rural development. It covers
supporting all other allied economic activities in rural areas, promoting sustainable rural
development and ushering in prosperity in the rural areas.
15. What do you mean by EXIM Bank? - Export and Import Bank of India was set up during the
year, 1982 for the purpose of financing, promoting and facilitating foreign trade in the country. It
is wholly owned by the Government of India. The bank apart from enhancing exports from the
country, integrates the country's foreign trade and investment with the overall economic growth.
16. What do you mean by SIDBI? - SIDBI was established for the purpose of assisting and
promoting small scale industry. It was established on 2.4.1990. It is the principal financial
institution established for the promotion, financing and development of industry in the small scale
sector and to coordinate the functions of the institutions engaged in the promotion and financing
or developing industry in the small scale sector.
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17. What do you mean by NBFCs? - Non Banking Finance Companies provide finance for small
ventures but at the same time they are more customer oriented and operate at low volumes
compared to the banks. They also collect deposits from customers and offer slightly higher
interest rates on deposits compared to the banks.
18. What do you mean NEFT and RTGS - The two options namely - national electronic fundstransfer and RTGS - real time gross settlement offered by Reserve Bank of India allow electronic
transfer of funds from the remitter who has an account in one bank to the beneficiary who has
account in any other bank/branch. The transfer can be carried out using the internet banking
facility. The minimum amount that can be transferred by RTGS is Rs. 2.00 lakh and there is no such
limit for transfer through NEFT. It is settled in batches at times defined by the Reserve Bank of India.
RTGS transactions are settled continuously as and when they are put through. The transfer of funds
through NEFT and RTGS can also be carried out by submitting the remittance form at the remitter's
bank branch.
19. What do you mean IFSC code? - IFSC means Indian financial system code. It is a eleven digit
code to identify the bank branch. IFSC code is used while transferring the funds using RTGS andNEFT payments.
20. What do you mean by financial inclusion? In spite of vast growth in the banking system, a large
number of poor people are still not served by any bank. They are living outside the purview of
any bank. Financial inclusion is delivery of financial services at an affordable cost to the vast
population of disadvantaged/low incomes sections of the society
21. What do you mean No frill accounts? No frill accounts are accounts with very low or nil
minimum balance as well as charges to be opened by the banks as targeted by Reserve Bank of
India. KYC norms are relaxed for opening no frill accounts so that people living in rural and semi
urban areas can open the accounts conveniently. Overdrafts upto Rs. 25000.00 are allowed in the nofrill accounts
22. What do you mean by narrow banking? - It is the system of banking under which the bank
accepts deposits from the public and places the funds accepted in 100 percent risk free assets
with maturity matching for its liabilities. The bank takes no risk of lending at all.
23. Who are business facilitators and business correspondents? - RBI has permitted the banks to
use the services of business facilitators and correspondents with effect from 2006. The services of
non-governmental officers, microfinance institutions and civil society organizations can be
utilized by the banks. They help the banks in identifying the borrowers processing their
applications etc. without involving in business transactions. No approval of RBI is necessary.Correspondents will do all the above and will also participate in business transactions in a small way.
24. What do you mean by non performing assets? - Non performing assets means bad loans.
When the principal and interest in the account becomes overdue for more than 90 days, it is
treated as non performing assets. Non performance assets are classified into sub standard assets,
doubtful assets and loss assets. Banks are willing to keep the level of non performance accounts at
the lowest.
25. What do you mean by priority sector advance? - In order to boost development of agriculture
and industries, Government of India has stipulated certain norms under which banks are in a
position to allocate 40 percent of their advances exclusively to certain categories of borrowers
called as priority sector advances. The following are classified into priority sector advances namely
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- retail traders, small business, professional and self employed; agriculture; small scale
industries, self help groups, differential rate of interest and SC/ST beneficiaries
26. What do you mean by merchant banking? - Merchant banking stands for provision of
various services to corporate clients by helping them to access capital market. Merchant
banks help the corporate customers to approach the capital market with initial public offers
for the purpose of collection of capital by way of shares.
27. What do you mean by demat accounts? Demat means dematerialization. During the early days,
shares and debentures certificates were issued in physical form in the form of certificates. At
present, they are issued in electronic form. It is the process by which paper securities are
converted to electronic form so that they can be stored, sold and transferred easily.
28. What is a depository? - A depository holds the securities of the investors in electronic form.
In our country there are two depositories namely; NSDL - National Securities Depositories
Limited promoted by National Stock Exchange and CDSL - Central Depository Services Limitedpromoted by Bombay Stock Exchange.
29. What do you know by consortium financing? When a corporate is in need of huge finance - say
Rs. 200 crores and above, banks join together and extend the loan facilities by sharing the loan
amount between themselves. This reduces the risk for each bank. The banks jointly process the
application of the borrower and sanction the advance and this is called consortium lending.
30. What do you mean by repo rate? - It is the rate at which RBI lends short term funds to the
commercial banks against securities. In order to temporarily expand the money supply, the
central bank decreases repo rates enabling the banks to swap the government securities for cash.
Repo is the abbreviation of Repurchase and to contract the money supply RBI increases the reporates.
31. What do you mean reverse repo ? - The reverse repo rate is the interest rate that banks
receive if they deposit money with the central bank. This reverse repo rate is always lower than the
repo rate. Increases or decreases in the repo and reverse repo rate have an effect on the interest
rate on banking products such as loans, mortgages and savings.
32. What do you mean by CRR? - CRR means Cash Reserve Ratio and as per the stipulations by
Reserve Bank of India, all banks are in a position to maintain a certain percentage of their
deposits (technically called as net demand and time liabilities) in their account with the RBI. CRR
ranges from 5 percent to 15 percent. By increasing CRR by merely 0.25 percent, an amount of Rs.15000 crores of liquid funds can be transferred from the commercial banks to the coffers of RBI.
When CRR is reduced, the liquid funds are transferred from RBI to commercial banks.
33. What do you mean by SLR? - Statutory Liquidity Ratio refers to the stipulation by RBI that
approximately 25 percent of the banks deposits is to be kept in the form of government securities,
gold and cash. Primarily SLR refers to the amount invested by the banks in Government of India
securities. RBI has the right to change the statutory liquidity ratio from time to time. On reduction
of SLR, the availability of funds for the banks moves up and banks tend to more loans to the
common public. In the case of increase in SLR, banks reduce bank lending.
34. What do you mean by PLR? - Prime lending rate is the rate at which commercial banks arewilling to lend to their triple A rated No 1 borrowers. The lending rates by the bank for other
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borrowers whose credit worthiness is low will be more than prime lending rate. RBI has
deregulated the lending rates that are to be charged by the banks for advance above Rs. 2 lakhs.
35. What do you mean by BPLR? - It is the rate at which commercial banks must charge to all
their advances less than Rs. 2 lakhs.
36. Who is a non resident Indian? - Non resident Indian is the person who is the Indian citizen
who is residing in abroad for more than 182 days and has gone for abroad for the purposes
namely; business, studies and employment.
37. What are the different types of accounts that can be opened by Non Resident Indians? - Non-
resident ordinary account, Non-resident External account, FCNR account and RFC account.
38. What are the different currencies in which FCNR accounts can be opened? - FCNR accounts
can be opened in the following currencies namely; US dollar, pound sterling, Euro, Australian
dollar, Japanese Yen and Canadian dollar. FCNR accounts can be opened for a minimum period of
one year and maximum period of three years
39. What are the traditional functions of RBI? - The traditional functions of RBI are - issue of
currency, forex management, export assistance, clearing house functions, change of currency,
transfer of currency, publication of statistics and other information and training in banking.
40. What are the developmental functions of RBI? - The developmental functions of RBI are -
agriculture development, promotion of industrial finance, promotion of export through
refinance, development of bill market, development and regulation of banking system.
41. What are the regulatory functions of RBI? - The regulatory functions of RBI are qualitative
credit control, bank rate, differential rate of interest, open market operations, Maintenance of
CRR and SLR, direct action, credit authorization scheme and moral persuasion
42. What are the different types of financial institutions in our country? - The various financial
institutions in our country are - RBI - Reserve Bank of India; SEBI - Securities and Exchange Board
of India and IRDA - Insurance Regulatory and Development Authority of India. RBI monitors the
various banks in the country; SEBI monitors and regulates capital markets and IRDA monitors the
functions of insurance companies.
43. What are the different types of banks in our country? - In our country the following banks are
available - savings banks; commercial banks; industrial banks; development banks; land
development banks; indigenous banks; central bank; cooperative banks; exchange banks and
consumer banks
44. What are the different types of secondary functions of any bank? - They are agency or
representative functions; general utility services and social development functions.
45. What do you mean by agency or representative functions of any bank? - They are collection
and payment of various items; purchase and sale of securities; trustee and executor; remitting
money; purchase and sale of financial exchange; letter of references and other agency functions.
46. What are the general utility services offered by the banks? - They are locker facilities;
business information; help in transportation of goods; acting as a referee; issuing of letters of
credit; acting as underwriters; issue of traveler cheques; issue of gift cheques and dealing in
merchant banking activities
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47. What are the social development functions of a bank ? - They are capital formation;
inducement to innovations; impact on the rate of interest; role on the development of rural
sector; helping in pushing up the demand
48. Can you name some items which are covered under negotiable instruments act? - They are
promissory notes, bills of exchanges; cheques, exchequer bills; circular notes; dividend warrants;share warrants; bearer debentures; bank notes and bank drafts
49. What is a Payment Bank? - Payment Bank is a entity which will allow you to open Savings and
Current Account like the other Banks. However, the difference is that a Payment Bank can be your
mobile operator or supermarket chain(eg. Big Bazar) or even a NBFC.
50. What Makes Payment Banks Different From Normal Banks? - Payment Banks helps the
customer to handle cash a lot easier by providing privileages like transferring money from your
Mobile Phones to any bank account or another mobile phone customer and also you can recieve the
money similar way. The added advantages are paying bills, paying at the Shopping Retailers and
recharges etc.
51. Why Payment Banks? - India has a vast growing Mobile Users Database with over 91 Crore
customers. So basically providing the service will increase the Financial Inclusion Programme.
Basically it will help the citizen a lot on the other hand it will boost up the financial inclusion.
Facts On Payment Banks
Payment Banks will give an interest to the customer's account each year similar like Banks.
The only thing Payment Banks will note provide is Giving Out LOANS. The RBI has stipulated that every payments bank must have an equity capital of 100 crore to
start off and maintain a capital adequacy of 15 per cent. Apart from these, it will need to
meet cash reserve requirements and needs to invest in specific securities to meet the
statutory liquidity ratio. All these amounts are to be invested in government securities or
treasury bills. Promoters holding must be at least 40 per cent for the first five years, and
eventually reduced to 26 per cent over 12 years.
NACHIKET MORE COMMITTEE is the officially appointed Committee which recommended
Payment Banks to increase the Financial Inclusion Programme.
Nachiket More Committee is also known as Committee on Comprehensive Financial
Services for Small Businesses and Low-Income Households. Speculations as of 13th August, 2014 are that Western Union, Bharti Airtel, Vodafone are
interested in Payment Banks. It is said that Bharti Airtel is teaming up with State Bank of
India to set up Payment Banks.
History of ATMs and White Label ATMs(WL-ATM/WLA)
The first bank who produced ATM was HSBC in the year 1987 in Mumbai. After that ATM has
been installed in many places. But the problem occurred when RBI noticed that theinstallation of ATMs have not been initiated in the Rural areas of India. Although SBI or State
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Bank of India has the largest ATM network, yet the rural areas are neglected. Mainly the
Urban and Developed areas had the most ATMs. You will notice more ATMs in Shopping
Malls, Movie Theatres, Sports Arena, Entertainment Parks but less in Rural areas, villages.
This has affected the Financial Inclusion program.
To increase the Financial Inclusion, RBI issued guidelines for Non-Banking Financial
Companies to set up White Label ATMs or WL-ATM.
Usually we have seen ATMs with Bank's Logo in it, making it sure that the bank has installed
the ATM in that location. But White Label ATMs does not have any Bank logo in it. It is
installed by any Non-Banking Entity.
52. How does White Label ATM work? - It is like the outsourcing of bank's payment service. Earlier
bank's had to install ATMs using their Logos and security and other maintenance staffs. But with the
White Label ATMs banks now only need to fill the White Label ATMs with cash. Suppose a NBFC
named XYZ Ltd. opens a White Label ATM with the name "ABC". Now they will have a bank as
sponsor. Suppose MNO Bank is the sponsor. So now, XYZ will install and set up their White LabelATMs and keep the maintenance staff and securities while MNO Bank will make sure the White
Label ATMs are having sufficient cash. The outcome of this system is that banks now will not need to
worry about maintenance and other things.
53. Do White Label ATMs charge the customer? - No, as per RBI guidelines they cannot charge the
customers directly. However, they charge from banks and the banks charge it from Customer's
account.
54. Summary of White Label ATM - Basically the main motive is to increase the financial inclusion.
As the NBFCs has to install White Label ATMs in a ratio of 1 Urban White Label ATM is to 2 Rural
White Label ATMs. So when they try to install 1000 White Label ATMs in a Urban Location they will
have to install 2000 White Label ATMs in the Rural Areas. It will increase the Rural participation in
Financial Inclusion.
Facts
IndiCash of Tata Communications Payment Solution Limited(TCPSL) was the first White Label
ATM in India.
More than 15 companies including Tata, Muthoot, Prizm Payments, Srei Infra., Vakgrangee
Software, AGS have been given permission of White Label ATMs by Reserve Bank of India.
Any NBFC or any non-bank entity with a minimum net worth of Rs.100 crore can apply for
White Label ATMs. However it is completely on RBI whether they will give permission or not.
The 5 transactions are free on a monthly basis but after that the White Label ATMs will
charge 15 rs per transaction and 5 rs per balance inquiry. These charges will later reflect on
the customer's bank account statement.
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BANKING & FINANCIAL TERMS
Repo Rate
Repo rate is the rate of interest which is levied on Short-Term loans taken by commercial banks fromRBI. Whenever the banks have any shortage of funds they can borrow it from RBI. reduction in therepo rate will help banks to get money at a cheaper rate. When the repo rate increases! borrowing from
RBI becomes more e"pensive.
Reverse Repo Rate
This is e"act opposite of Repo rate. Reverse repo rate is the rate at which commercial banks #$R%&on their surplus funds with RBI. RBI uses this tool when it feels there is too much money floating in thebanking system. Banks are always happy to keep money with RBI since their money is in the safe handswith a good interest. n increase in Reverse repo rate can cause the banks to transfer more funds to RBIdue to these attractive interest rates.
CRR Rate
#ash reserve Ratio '#RR( is the amount of cash funds that the banks have to maintain with RBI. If RBIdecides to increase the percent of this! the available amount with the banks comes down. RBI is using
this method 'increase of #RR rate(! to drain out the e"cessive money from the banks.
SLR Rate
S)R 'Statutory )i*uidity Ratio( is the amount a commercial bank needs to maintain in the form of cash! orgold or government approved securities 'Bonds( before providing credit to its customers.S)R is determined and maintained by the RBI in order to control the e"pansion of bank credit. S)R isdetermined as the percentage of total demand and time liabilities. Time )iabilities are the liabilities acommercial bank is liable to pay to the customers after a specific time period. S)R is used to controlinflation and proper growth. Through S)R tuning! the money supply in the system can be controlledefficiently.
Bank Rate
Bank rate is the rate of interest which is levied on )ongt-Term loans and vances taken by commercialbanks from RBI. #hanges in the bank rate are often used by central banks to control the money supply.
MSF Rate+-,S',arginal Standing acility Rate(is the rate at which banks can borrow overnight fromRBI.This was introduced in the monetary policy of RBI for the year /00-/0. Banks can borrow funds through ,S
when there is a considerable shortfall of l i*uidity. This measure has been introduced by RBI to regulate short-
term asset liability mismatches more effectively
Base Rate:-The Base Rate is the minimum interest rate of a Bank below which it cannot lend! e"cept for
1RI advances! loans to bank2s own employees and loan to banks2 depositors against their own deposits.
'i.e. cases allowed by RBI( .
Term Deposit Rate+- deposit held at a financial institution that has a fi"ed term. These are generally
short-term with maturities ranging anywhere from a month to a few years. When a term deposit ispurchased! the lender 'the customer( understands that the money can only be withdrawn after the termhas ended or by giving a predetermined number of days notice.
In!ation
Inflation is as an increase in the price of goods and services that pro3ects the Indian economy. nincrease in inflation figures occurs when there is an increase in the average level of prices in goods andservices. Inflation happens when there are fewer goods and more buyers4or we can say when demand is
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BANKING & FINANCIAL TERMS
more than supply.This will result in increase in the price of goods! since there is more demand and lesssupply of the goods.
De!ation
1eflation is the continuous decrease in prices of goods and services. 1eflation occurs when the inflationrate becomes negative 'below 5ero( and stays there for a longer period.
FII
II 'oreign Institutional Investor( used to denote an investor! mostly in the form of an institution. ninstitution established outside India! which proposes to invest in Indian market! in other words buyingIndian stocks. II6s generally buy in large volumes which has an impact on the stock markets. InstitutionalInvestors includes pension funds! mutual funds! Insurance #ompanies! Banks etc.
FDI:-1I 'oreign 1irect Investment( occurs with the purchase of the 7physical assets or a significantamount of ownership 'stock( of a company in another country in order to gain a measure of management
control8 'or( foreign company having a stake in an Indian company.
SE":-S&9 means Special &conomic 9one is a special geographic part of country which possess specialeconomic regulations that are different from other areas in the same country. ,oreover! these regulationstend to contain measures that are favourable to foreign direct investment. #onducting business in a S&9usually means that a company will receive ta" incentives and the opportunity to pay lower tariffs.
The basic motto behind this is to increase foreign investment! development of infrastructure! 3obopportunities and increase the income level of the people.
Ba!an#e o $a%ment:- record of all transactions made between one particular country and all othercountries during a specified period of time.
Balance of payment of a country is a systematic record of all economic transactions completed betweenits residents and the residents remaining world during a year. In other words! the balance of paymentshows the relationship between the one country6s total payment to all other countries and its total receiptsfrom them.
Ba!an#e o Trae:-Balance of trade refers to the total value of a country6s e"port commodities and totalvalue of imports commodities. Thus balance of trade includes only visible trade i.e. movement of goods'e"ports and imports of goods(. Balance of trade is a part of balance of payment settlement.
Ba!an#e s'eet:-Balance sheet is a statement showing the assets and liabilities of a business at a certaindate. Balance sheet helps in estimating the real financial situation of a firm.
Dire#t an Inire#t Ta(es:-1irect ta"es are levied on the income of individuals and corporates. ore"ample! income ta"! corporate ta" etc. Indirect ta"es are paid by consumer when they buy goods andservices. These include e"cise duty! custom duty! :T! service ta" etc.
Bri)e Loan:- loan made by a bank for a short period to make up for a temporary shortage of cash. ;nthe part of borrower! mostly the companies for e"ample! a business organi5ation wants to install a newcompany with new e*uipments etc. while his present installed company
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BANKING & FINANCIAL TERMS
Ca!! Mone%:-#all money is in the form of loans and advances which are payable on demand or within thenumber of days specified for the purpose.
C!earin) Bank:-#learing bank is one! which settles the debits and credits of the commercial banks. &ven
of the cash balances are lesser! clearing bank facilitates banking operation of the commercial bank.
C!earin) *o+se:-#learing house is an institutions which helps to settle the mutual indebtedness thatoccurs among the members of its organi5ation.
Gres'am,s La:-7Bad money 'if not limited in *uantity( drives good money out of circulation8 = Thisstatement was given by Sir Thomas %resham! the economic adviser of >ueen &li5abeth. This law statesthat people always want to hoard good money and spend bad money when two forms of money are incirculation at the same time.
*DI:- tool developed by the ?nited @ations to measure and rank countries6 levels of social andeconomic development based on four criteria+ )ife e"pectancy at birth! mean years of schooling!e"pected years of schooling and gross national income per capita. The $1I makes it possible to track
changes in development levels over time and to compare development levels in different countries.
Monetar% $o!i#%:-,onetary policy is the process by which monetary authority of a country! generally acentral bank controls the supply of money in the economy by e"ercising its control over interest rates inorder to maintain price stability and achieve high economic growth. In India! the central monetaryauthority is the Reserve Bank of India 'RBI(. is so designed as to maintain the price stability in theeconomy. ;ther ob3ectives of the monetary policy of India! as stated by RBI! are+Regressive Ta"
It is the ta" in which rate of ta"ation falls with an increase in income. In regressive ta"ation incidence fallsmore on people having lower incomes than that of those having higher incomes.
Creit A+t'ori.ation S#'eme:-#redit uthori5ation Scheme was introduced in @ovember! 0AC when D
# Bhattacharya was the chairman of RBI. ?nder this instrument of credit regulation RBI as per the
guideline authori5es the banks to advance loans to desired sectors
/pen Market /perations:-n open market operation is an instrument of monetary policy which involves
buying or selling of government securities from or to the public and banks.
Mora! S+asion:-,oral Suasion is 3ust as a re*uest by the RBI to the commercial banks to take so and so
action and measures in so and so trend of the economy. RBI may re*uest commercial banks not to give
loans for unproductive purpose which does not add to economic growth but increases inflation.
S'ao $ri#e
It is an imputed value for a good based on the opportunity costs of the resources used to produce it such
values are of particular significance in resolving problems of resource allocating with respect to the effecton welfare.
Spe#ia! Drain) Ri)'ts 0SDRs1:-It is a reserve asset 'known as EDaper %old6( created within theframework of the International ,onetary und in an attempt to increase international li*uidity! and nowforming a part of countries official fore" reserves along with gold! reserve positions in the I, andconvertible foreign currencies2
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BANKING & FINANCIAL TERMS
Sta)!ation+-It is a state of the economy in which economic activity is slowing down! but wages and pricescontinue to rise. The term is blend of the words stagnation and inflation.
Transer pa%ment:-It is a payment made by public authority other than one made in e"change for goods
or services produced. Transfer payments are not the part of @ational Income. &"amples includesunemployment benefit and child benefits.
In other words! the transfer is made without any e"change of goods or services.F0G
&"amples of certain
transfer payments include welfare 'financial aid(! social security! and government making subsidies forcertain businesses
Deva!+ation:- T'e !oss o va!+e o #+rren#% o a #o+ntr% re!ative to ot'er orei)n #+rren#% isknon as eva!+ation2 Deva!+ation is a pro#ess in 'i#' t'e )overnment e!i3erate!% #'eapenst'e e(#'an)e va!+e o its on #+rren#% in terms o ot'er #+rren#% 3% )ivin) it a !oer e(#'an)eva!+e2 Deva!+ation is +se or improvin)4 t'e 3a!an#e o pa%ment sit+ation in t'e #o+ntr%2
Fis#a! $o!i#%:-iscal policy is the use of government revenue collection 'ta"ation( and e"penditure'spending( to influence the economy
iscal policy is that part of government policy which deals with ta"ation! e"penditure! borrowing and themanagement of public debt in the economy. fiscal policy primarily concerns itself with the flow of funds inthe economy. it e"erts a very powerful influence of the working of economy as a whole.
S#'e+!e Banks:-They are banks which are included in the second schedule of the Reserve Bank ofIndia ct! 0AH. These banks en3oy certain privileges such as free concessional remittance facilities andfinancial accommodation from the RBI. they also have certain obligations like minimum cash reserve ratio'#RR( to be kept with RBI.
ATM +T,s are utomatic Teller ,achines! which do the 3ob of a teller in a bank through #omputer
@etwork. T,s are located on the branch premises or off branch premises. T,s are useful to dispense
cash! receive cash! accept che*ues! give balances in the accounts and also give mini-statements to the
customers.
Bo+n#in) o a #'e5+e + Where an account does not have sufficient balance to honour the che*ue
issued by the customer ! the che*ue is returned by the bank with the reason Jfunds insufficientJ or
J&"ceeds arrangementJ.This is known as 2Bouncing of a che*ue2 .
Co!!e#tin) Banker+ lso called receiving banker! who collects on instruments like a che*ue! draft or bill
of e"change! lodged with himself for the credit of his customer2s account.
De3it Car + plastic card issued by banks to customers to withdraw money electronically from their
accounts. When you purchase things on the basis of 1ebit #ard the amount due is debited immediately to
the account . ,any banks issue 1ebit-#um-T, #ards.
Deman Deposits + 1eposits which are withdrawn on demand by customers.&.g. savings bank and
current account deposits.
Demat A##o+nt + The term JematJ! in India! refers to a dematerialised account for individual Indian
citi5ens to trade in listed stocks or debentures in electronic form rather than paper! as re*uired
for investors by the Securities and &"change Board of India 'S&BI(. In a emat a##o+nt! shares and
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BANKING & FINANCIAL TERMS
securities are held electronically instead of the investor taking physical possession of certificates.
demat account is opened by the investor while registering with an investment broker
E!e#troni# Commer#e 0E-Commer#e1:&-#ommerce is the paperless commerce where the e"change of
business takes place by &lectronic means.
Enorsement + When a @egotiable Instrument contains! on the back of the instrument an endorsement!
signed by the holder or payee of an order instrument! transferring the title to the other person! it is called
endorsement.
Mer#'ant Bankin) + When a bank provides to a customer various types of financial services like
accepting bills arising out of trade! arranging and providing underwriting! new issues! providing advice!
information or assistance on starting new business! ac*uisitions! mergers and foreign e"change.
Minor A##o+nts+ minor is a person who has not attained legal age of 0K years. s per #ontract ct a
minor cannot enter into a contract but as per @egotiable Instrument ct! a minor can draw!negotiate!
endorse! receive payment on a @egotiable Instrument so as to bind all the persons! e"cept himself. Inorder to boost their deposits many banks open minor accounts with some restrictions.
Mo3i!e Bankin)+ With the help of ,-Banking or mobile banking customer can check his bank balance!
order a demand draft! stop payment of a che*ue! re*uest for a che*ue book and have information about
latest interest rates.
Mone% La+nerin)+ When a customer uses banking channels to cover up his suspicious and unlawful
financial activities! it is called money laundering.
Mort)a)e + Transfer of an interest in specific immovable property for the purpose of offering a security for
taking a loan or advance from another. It may be e"isting or future debt or performance of an agreement
which may create monetary obligation for the transferor 'mortgagor(.
NABARD + @ational Bank for griculture L Rural 1evelopment was setup in 0AK under the ct of 0AK0.
@BR1 finances and regulates rural financing and also is responsible for development agriculture and
rural industries.
Ne)otiation + In the conte"t of banking! negotiation means an act of transferring or assigning a money
instrument from one person to another person in the course of business.
N$A A##o+nt+ If interest and instalments and other bank dues are not paid in any loan account within a
specified time limit! it is being treated as non-performing assets of a bank.
$!asti# Mone% + #redit #ards! 1ebit #ards! T, #ards and International #ards are considered plastic
money as like money they can enable us to get goods and services
$rime Lenin) Rate 0$LR( + The rate at which banks lend to their best 'prime( customers.It is usually
less than normal interest rate.
$romissor% Note+ Dromissory @ote is a promise < undertaking given by one person in writing to another
person! to pay to that person ! a certain sum of money on demand or on a future day.
$+3!i# Se#tor Bank+ bank fully or partly owned by the %overnment.
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BANKING & FINANCIAL TERMS
6irt+a! Bankin) + :irtual banking is also called internet banking! through which financial and banking
services are accessed via internet2s world wide web. It is called virtual banking because an internet bank
has no boundaries of brick and mortar and it e"ists only on the internet.
7'o!esa!e Bankin)+ Wholesale banking is different from Retail Banking as its focus is on providing forfinancial needs of industry and institutional clients.
Nationa! E!e#troni# F+ns Transer S%stem 0NEFT1M RBI introduced an electronic funds transfer
system to facilitate an efficient! secure!econo-mical! reliable and e"peditious system of funds transfer and
clearing in the banking sector throughout India! and to relieve the stress on the e"isting paper-based
funds transfer and clearing system called @ational &lectronic unds Transfer System '@&T
System(.
Nationa! E!e#troni# C!earin) Servi#es 0NECS1 MThe ob3ective of @ational &lectronic #learing
Services '@S( is to facilitate centralised processing for repetitive and bulk payment instructions.
Sponsor banks shall submit @S data at a single centre vi5. at ,umbai. While @S '#redit( shall
facilitate multiplecredits to beneficiary accounts at destination branch against a single debit of theaccount of a ?ser with the sponsor bank! the @S '1ebit( shall facilitate multiple debits to destination
account holders against single credit to user account.
8niversa! Bankin):- ?niversal Banking refers to those services offered by banks beyond traditional
banking service such as saving accounts and loans and includes Dension unds ,anage-ment!
undertaking e*uipment leas-ing! hire purchase business and factoring services! Drimary 1ealer-ship
'D1( business! insurance busi-ness and mutual fund business.
Finan#ia! S%stem:-The economic development of a nation is reflected by the progress of the various
economic units! broadly classified into corporate sector! government and household sector. While
performing their activities these units will be placed in a surplus
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BANKING & FINANCIAL TERMS
Creit Market- #redit market is a place where banks! Is and @B#s give short! medium and long-term
loans to corporate and individuals.
Mone% Market Instr+ments:-,oney ,arket Instruments The money market can be defined as a market
for short-term money and financial assets that are near substitutes for money. The term short-termmeans generally a period upto one year and near substitutes to money is used to denote any financial
asset which can be *uickly converted into money with minimum transaction cost.
Some o t'e important mone% market instr+ments are 3rie!% is#+sse 3e!o9
0. #all
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BANKING & FINANCIAL TERMS
Bo+n#e C'e5+e:- che*ue that a bank has refused to cash or pay because the account holder does not
have sufficient funds to cover it in this account.
Cas'ier,s C'e5+e:- che*ue issued by a bank drawn on its own funds rather than on the funds its
depositors.
C!ear:- che*ue is 7cleared8 when its account is debited or deducted from the payer6s account and
credited or added to the payee6s account.
Compo+n Interest:-Interest calculated on the original principal and on the interest already accrued.
/verrat:- che*ue written for more money than is currently in the account. The che*ue is said to have
Ebounced6 if the bank refuse to cash the che*ue.
Stop $a%ment:- re*uest made to a bank to not pay a specific che*ue. If re*uested soon enough! the
che*ue will not be debited from the payer6s account.
Bank Drat:- che*ue drawn by one bank against funds deposited into its account at another bank!
authori5ing individual named in the draft.
Ina#tive A##o+nt:-Transactions house not occurred on a bank account for an e"tended period of time..
$ersona! Ientii#ation N+m3er 0$IN1:-n account holder has a secret number or code to authori5e a
transaction or obtain information regarding his or her account often used in con3unction with a plastic card
'T, or 1ebit #ard(! online account access or with a telephone voice response system.
Bank Statements:-This is a statement from the bank giving details of transaction in the relevant account.
It can be re*uested at any intervals re*uired! usually monthly.
C'e5+e C!earin):-This is the process of getting the money from the che*ue-writer6s account into theche*ue receiver6s account.
Stanin) /rer:- regular payment made out of a current account which is of a set account and is
originated by the account holder.
Frin)e Beneit:- benefit in addition to salary offered to employees such as use of company6s car!
house! lunch coupons! heath care subscriptions etc.
Forei)n E(#'an)e Reserves:-Forei)n-e(#'an)e reserves'also called ore( reservesor F@
reserves( in a strict sense are 2only2 the foreign currency deposits and bonds held by central banks and
monetary authorities. $owever! the term in popular usage commonly includes foreign e"change
and gold! special drawing rights 'S1Rs(! and International ,onetary und 'I,( reserve positions.
Croin) /+t:-The possible tendency for government spending on goods and services to put upward
pressure on interest rates! thereby discouraging private investment spending.
Centra! Bank:-,a3or inancial institution responsible for issuing currency! managing foreign reserves!
implementing monetary policy! and providing banking services to the government and commercial banks
RBI is the central bank of India.
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BANKING & FINANCIAL TERMS
A##o+nt pa%ee:-lso Eaccount payee only6. Words written on the face of a che*ue between two parallel
lines. The purpose is to ensure that the che*ue may only be paid into an account in the name of the
payee-the person to whom the che*ue is made payable. This means that the payee cannot sign it in
names of another person.
M+!ti /ption Deposit s#'eme:-,ulti ;ption 1eposit scheme is a term deposit which is not fi"ed at all
and comes with a uni*ue break-up facility which provides full li*uidity as well as benefit of higher rate of
interest! through the savings bank account. ;ne can also keep that deposit intact by availing on overdraft
facility! to meet occasional temporary funds re*uirements.
Cars:-Banks provide free T, cum 1ebit card to its customers who have deposit account with them.
This card provides online access to savings or current account. They can have the access to the widest
network of T,s across the country to withdraw cash! en*uire about the account balance etc. Banks are
also having bilateral sharing arrangement with other banks under this scheme.
Demat Servi#es:Banks have come forward to offer 1emat Services to its customer. 1emat account! the
abbreviation for demateriali5ed account is used to avoid holding physical shares+ The shares are boughtand sold through a stock broker.
/n!ine Bankin):-Transaction at the convenience of customers! saving times and cost through computers
is popularly known as ;nline Banking. It is also known as &-Banking or @et Banking or Internet Banking.
It is done through a computer with internet facilities. #ustomers can monitor and control their through
Internet Banking. They can check account balance view their account! get summary statement! make bill
payments and utility payments! re*uest for che*ue book! drafts! Bankers che*ues! stop che*ue
payments! transfer funds! re*uest for third party transfers! invest and renew deposits! issue standing
instruction! register mobile number for S,S alerts and many more attractive features user-id and
password are given by the banks to the customer for operation of account after they successfully register
with the bank.
NRI Bankin) :-Banks allow @RI6s to open an @RI account when they complete the account opening
formalities. customer for this purchase a form has to be filled up in which the information soughtly the
bank is provided. They can have a @RI Saving Bank ccount! #urrent ccount! i"ed 1eposits in Indian
Rupees! i"ed 1eposits in foreign currency! @R; account 'Rupee account for crediting income in India(
Savin) A##o+nt9- saving bank account is the most common operating account for individuals and
others for non-commercial transaction. savings account helps people to put through day-to-day
banking transaction besides earning some return on the savings made. Banks generally put some ceiling
on the total number of withdrawals permitted during specific time periods. Banks also stipulate certain
minimum balance to be maintained in saving accounts @ormally! a higher minimum balance is stipulated
in che*ue operated accounts as compared to non-che*ue operated accounts. Banks as a rule do not give
overdraft facility in a saving account but allow occasional over drawings to meet contingencies.
C+rrent A##o+nts:-#urrent accounts are che*ue operated accounts maintained for mainly business
purpose. ?nlike savings bank accounts no limits are fi"ed by banks on the number of transaction
permitted in the account Banks generally insist on a higher minimum balance to be maintained in current
account. #onsidering the large number of transactions in the account and volatile nature of balances
maintained overnight banks generally levy certain service charges for operating a current account. In
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BANKING & FINANCIAL TERMS
terms of RBI directive banks are not allowed to pay any interest on the balances maintained in current
accounts.
Fi(e or Time Deposits:-Time deposits are deposits accepted by banks for a specified period of time. In
terms of RBI directives the minimum period for which term deposits can be accepted is 0C days. Thebanks generally do not accept deposit for period longer than 0/ years. Banks pay interest on term
deposits based on the periods of deposits and normally pay higher interest for longer term deposits
changes made in interest rates from time to time do not alter the interest paid on the e"isting deposits.
Banks are allowed to levy a penalty for premature encashment of deposits at their discretion. Bank allow
loans against the fi"ed deposits on demand margin retained over the deposit outstanding and interest
rate charged there on are decided by to bank and may vary from bank to bank.
Capita! Ae5+a#% Ratio:-#apital ade*uacy ratio measures the amount of a bank6s capital e"pressed as
a percentage of its credit e"posure. %lobally! the capital ade*uacy ratio has been developed to ensure
banks can absorb a reasonable level of losses before becoming insolvent. Indian banks are e"pected to
maintain a minimum capital ade*uacy ratio of A per cent 'Rs A as capital for every Rs 0// in loan or
asset( pplying minimum capital ade*uancy ratios serves to protect depositors and promote the stability
and efficiency of the financial system by reducing the likelihood of banks be coming insolvent.
Co!!atera! Loan Market
#ollateral loan market forms! by and large! the largest and the best developed section of the money
market. In this market! loans are given against the security of government bonds! shares of first class
companies! agriculture and manufactured commodities and bullion and 3ewellery.
M+t+a! F+ns:-,utual unds collect the savings from small investors to invest them in government and
other corporate securities and cash income through interest and dividends desides capital gains. It works
on the principle of 7small drops of water make a big ocean8 to get funds from investors! the fund adopts a
simple techni*ue. &ach fund is divided into a small fraction #alled Eunits6 of e*ual value. &ach investor isallotted units in proportion to the si5e of his investment.
Re)+!ar Savin)s A##o+nt:- orm of deposit account with no legal limits or re*uirements as to amount
duration or times of addition or withdrawals.
7ire Transer:-n electronic transfer of funds from one financial institution to another.
E#onomi# Mira#!e:-The terms Jeconomic miracleJ! Jeconomic boomJ! Jtiger economyJ or simply JmiracleJ
have come to refer to great periods of change! particularly periods of dramatic economic growth! in the
recent histories of a number of countries.
Asset Lia3i!it% Mismat#':-In finance! an asset=liability mismatch occurs when the financial
terms of an institution2s assets and liabilities do not correspond
Fi(e in#ome + It refers to any type of investment under which the borrower
-
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BANKING & FINANCIAL TERMS
$remi+m Finan#in) :-Dremium inancing involves the lending of funds to a person or company to cover
the cost of an insurance premium.Dremium finance loans are often provided by third party finance entity
known as a JDremium inancing #ompanyJ4 however insurance companiesand brokerages occasionally
provide premium financing services
Net present va!+e:- In finance! the net present va!+e'N$6( or net present ort''N$7(F0G
of a time
series of cash flows! both incoming and outgoing! is defined as the sum of the present values 'D:s( of the
individual cash flows of the same entity.
S'are Capita!:-unds raised by issuing shares in return for cash or other considerations. The amount of
share capital a company has can change over time because each time a business sells new shares to the
public in e"change for cash! the amount of share capital will increase. Share capital can be composed of
both common and preferred shares.
1)
First bank established in India: Bank of Hindustan in 17702)
First India bank started solely with Indian capital investment is PNB (Punjab National Bank)
3)
Founder of Punjab National Bank is Lala Lajpat Rai4)
Reserve Bank of India RBI) was established in 1935 and Nationalized in 1949.5)
First governor of RBI: Mr.Osborne Smith6)
First Indian Governor of RBI: Mr. C D Deshmukh
7)
First bank to introduce savings account in India: Presidency Bank in 18338)
First bank to introduce cheque system in India: Bengal Bank in 18339)
First bank to introduce internet banking: ICICI bank10)
First bank to introduce mutual fund: State Bank of India
11)
First bank to introduce credit card in India: Central Bank of India12)
Open market operations are carried out by RBI13)
Capital market regulator is SEBI14)
Largest Commercial bank in India State Bank of India
15)
The International Bank for Reconstruction and Development (IBRD) is known as World Bank16)
CRR, SLR, Repo Rate, Reverse Repo rate are decide by RBI17)
Savings banks interest rates, fixed deposit interest rates, Loan Rates etc. are decided by individual banks18)
The bank which has launched Mobile Bank Accounts in association with Vodafones m paisa HDFC Bank
19)
Largest Public sector bank in India SBI20)
Largest Private sector bank in India ICICI Bank
21)
Largest Foreign bank in India Standard Chartered Bank22)
First Indian bank to open branch outside India i.e. London in 1946: Bank of India23)
First RRB named Prathama Grameen Bank was started by: Syndicate Bank24)
First Bank to introduce ATM in India: HSBC in1987, Mumbai
25)
Bank of Barodahas the maximum number of overseas branches
26)
FDI limit for new banks 49%27)
FDI limit for private banks: 74%28)
Bank of Indiais the first Indian Bank to open overseas branch. It established a branch in London in 1946.
29)
ICICI Bankwas the first Bank to provide Mobile ATM.30)
SBI State Bank of Indiahas the total number of maximum branches and holds 2nd position in the world.31)
India's first "talking" Automated Teller Machine ATM) launched by Union Bank of India UBI) for visuallyimpaired was launched in Ahmedabad Gujarat).
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ONE LINERS TO REMEMBER
http://en.wikipedia.org/wiki/Insurance_premiumhttp://en.wikipedia.org/wiki/Insurance_companyhttp://en.wikipedia.org/wiki/Net_present_value#cite_note-netpresworth-0http://en.wikipedia.org/wiki/Net_present_value#cite_note-netpresworth-0http://www.exampundit.in/http://www.exampundit.in/http://www.exampundit.in/http://www.exampundit.in/http://www.exampundit.in/http://www.exampundit.in/http://www.exampu