Beruflich Dokumente
Kultur Dokumente
OLTAS: Online tax accounting system is introduced to enable the customers to pay all
their taxes in Bank itself, instead of going to the concerned departments like, Income Tax, Central Excise, Sales Tax etc. On the other hand this is an extra service and extra income to the banks. This type of income is called non-interesst income. Banks will earn around Rs 45/per transaction from the concerned departments.
SMART CARDS:A smart card, chip card, or integrated circuit card (ICC), is in any pocket-sized card with embedded integrated circuits which can process data. This implies that it can receive input which is processed by way of the ICC applications and delivered as an output. There are two broad categories of ICCs. Memory cards contain only non-volatile memory storage components, and perhaps some specific security logic. Microprocessor cards contain volatile memory and microprocessor components. The card is made of plastic, generally PVC. The card may embed a hologram to avoid counterfeiting. Using smartcards also is a form of strong security authentication for single sign-on within large companies and organizations.
IRDA: A statutory body called the Insurance Regulatory Authority set up in 1996.
Renamed as Insurance Regulatory and Development Authority with the passage of IRDA Act, 1999. Mr J Harinarayan is the present Chairman. The headquarters of IRDA is at Hyderabad The major objectives of the IRDA Act are: Protect the policy holders / investors interest, Promote orderly growth of insurance industry Registration of insurance companies Administer the provisions of Insurance Acts, Devise control activities for functioning of insurance companies, Lay down the accounting methodology, Adjudicate disputes
The minimum paid up equity capital for life or general insurance business is Rs.100 crores. The minimum paid up equity capital for carrying on reinsurance business has been prescribed as Rs.200 crores.
Practice Bits
01. Which of the following are the essential characteristics of Money? A. Durability D. All A,B & C B. Portability E. None of the above C. Divisibility
02. The Imperial Bank of India was renamed as ? A. Reserve Bank of India D. IDBI B. State Bank of India E. None of the above C. Union BanK of India
03. Plastic money Exchanged electronically Includes: A. Debit Cards D. Smart Cards B.Credit Cards E. All the above C. ATM Cards
04. Some of the institutions covered under all India DFIs are: A Industrial Finance Corporation of India (IFCI) B Industrial Development Bank of India (IDBI) C Industrial Credit and Investment Corporation of India (ICICI) D Industrial Investment Bank of India (IIBI) E All the above 05. OLTAS stands for A. Online Tax Assessment System C. Online Tax Analysis System E. None of the above 06. Updated technology enables the banks to provide efficient products and services. Some of the products and services are: A. ATM Cards D. Internet Banking B. Credit Cards E. All the above C. Smart Cards B. Online Tata Administrative Services D. Online Tax Accounting System
07. ___________has been set up for exchange of credit information among its members: A. DICGC B. ECGC C. CIBIL D. EXIM BANK E. RBI
08. BCSBI stands for: A. Basel Committee for State Bank of India B. Banker Customer Stability Board of India C. Banking Codes and Standards Board of India D. Banking Codes and State Bank of India E. None of the above 09. IDRBT is a Banking Research Institute, established in 1996 by: A. Reserve Bankj of India C. Department of Information & Technology E. None of the above 10. Teaser Rate of Interest means: A. A teaser rate means, a low introductory interest rate on an Adjustable Rate Mortgage (ARM), generally in home loans B. Charging high rate of interest C. Charging high rate of interest for HNIs D. Rate of interest charged to college staff members E. None of the above 11. Urban Cooeprative banks are controlled by ___________ and _______________ A. State Government and RBI B. State Government and NABARD B. Government of India D. ICRISAT
C. Both State Government and Central Government D. RBI and NABARD. E. None of the above
12. __________regulates all aspects of Insurance Business A. RBI B. IRDA C. AMFI D. SEBI E. All the above
13. SWIFT stands for A. Society for Worldwide Interbank Financial Telecommunication B. Society for Worldwide Indian Financial C. Social net(Working) for International Funds Transfer D. Only C E. None of the above
14. RBI is popularly known as a lender: A. To Central Government D. Of the last resort B. To State Government E. None of the above C. Of Foreign Currency
15. Name the scheme in Mutual Funds which is askin to recurring deposits? A. Systematic Invetment Plan C. Open Ended scheme B. Unit Linked Insurance Policy D. All the above E. None of the above
16. Name the payment system where payment instructions are processed on a continuous basis: A. Protocol Conversion Device C. ECS B. RTGS D. ATM E. None of the above
17 The benefits of leveraging technology to the customer are: A. Easier access D. Global access B. Quicker services E. All the above C. Convenience of banking
18. Which of the following organisations/agencies works solely to monitor and arrange flow of agriculture credit in India? A. NABARD B. RBI C. SIDBI D. SEBI E. None of the above
19. IFSC code represents: A. Indian Financial Systematic Code C. Indian Financial System Code F. None of the above 20. When banks accept a fixed sum of money from an individual for a definite term and pay on maturity with interest, the deposit is known as : A. Term Deposit D. Mortgage ANSWERS 01 D 02 B 03 E 04 E 05 D 06 E 07 C 08 C 09 A 10 A B. Demand Draft E. None of the above C. Bond B. Indian Forex Service Council D. Integrated Financial Services Code
11 A
12 B
13 A
14 D
15 A
16 B
17 E
18 A
19 C
20 A
BANKING AWARENESS
RESERVE BANK OF INDIA
Reserve Bank of India was established on 01.04.1935 under RBI Act 1934 on the recommendations of John Hilton Young commission 1926 (Royal Commission on Indian Currency and Finance). RBI is Central Bank of our country and it is nationalised w.e.f 1st January, 1949. Initially it was a shareholders bank which was taken over by the Central Government under Reserve Bank(Transfer of Public Ownership) Act 1948 with a paid up capital of Rs 5 Cr. RBIs Central Office is in Mumbai. FUNCTIONS OF RBI: a. Issuance of currency: RBI is the sole agency/authority in India to issue bank notes under signature of Governor, RBI. Bank Note means Rs.2 and above. (One rupee note and all coins will be issued by Central Government. One rupee note will be signed by Finance Secretary) Coins will be minted at four stations i.e. Mumbai, Kolkata, Hyderabad and Noida b. Banker to the Government: Manages public debt and transacts government business. c. Bankers bank: Controls the banks and acts as a lender of last resort by providing financial assistance in various ways d. Controller of credit to control inflation and money supply e. It ensures liquidity position of banks requirements. through maintenance of CRR/SLR
Nationalization of Banks
A significant milestone in Indian Banking happened in the late 1960s when the government nationalized, on 19th July, 1969 14 major commercial Indian Banks, followed by nationalization of 6 more commercial Indian banks in 1980. The stated reason for the nationalization was more control of credit delivery. After this, until the 1990s, the nationalized banks grew at a leisurely pace of around 4%. New Bank of India was amalgamated with Punjab National Bank in 1993.
During 1990 and 2000 Liberalisation, Privatisation and Globalisation took place and banking industry picked up a lot in its business. Technological advancement started by migrating from manual to computerisation of records. Narasimhans Commitee recommendations on prudential norms for Non Performing Assets were adopted which resulted in healthy growth of banks asset portfolio. After 2000 till date banks growth started galloping through Online Banking, development of Alternate delivery channels like ATM, Net BANKING, Mobile Banking, etc.
Reverse repo rate signifies the rate at which the central bank absorbs liquidity from the banks, while repo signifies the rate at which liquidity is injected.
What is CRR?
Cash Reserve Ratio, refers to a portion of deposits (as cash) which banks have to keep/maintain with the RBI. This serves two purposes. It ensures that a portion of bank deposits is totally risk-free and secondly it enables that RBI control liquidity in the system, and thereby, inflation by tying their hands in lending money.
What is SLR?
Besides the CRR, banks are required to invest a portion of their deposits in government securities as a part of their statutory liquidity ratio (SLR) requirements. What SLR does is again restrict the banks leverage in pumping more money into the economy.
Minimum margin for lending against selected commodities Ceiling on level of credit Minimum rate of interest to be charged on advances against particular commodities.
Practice Bits
1. Functions of Reserve Bank are: a) Bankers bank b) Banker to Government c) Lender of last resort d) Controlling financial requirements of banks through Repo/Reverse Repo e) All the above 2. How many Deputy Governors will be there in RBI: a) 3 b) 5 c) 7 d) 4
e) No Deputy Governor will be appointed 3. Reverse Repo Rate has the following characteristic: a) Borrowing by RBI from banks b) Borrowing with government security as collateral c) Short Term Borrowing d) All the above e) None of the above 4. Indian commercial banks are categorised into: a) Public Sector banks d) All the above b) Foreign Banks e) None of the above c) Private Sector Banks
5. Regional Rural Banks have been set up with the basic objective of: a) Providing credit to semi-urban and urban population b) Providing deposits facilities to farmers c) Providing credit and deposit facilities to rural areas d) Providing credit, deposit and other banking facilities to people in rural areas e) None of the above 6. The following is a mechanism for injecting liquidity by RBI to the financial system: a) Reverse Repo d) Repo b) Hike in CRR e) None of the above c) Hike in interest rate
7. ____________ are Local Institutions functioning like Banks a) Local Area Banks d) Financial Institutions b) Indigenous Banks e) All the above c) Private Banks
8. The first nationalisation of banks exercise was done on: a) 19.07.1969 d) 15.08.1967 b) 19.07.1970 e) None of the above c) 19.07.1967
10. The Basic criteria that was considered while nationalisation of banks in 1969 was the liability base of banks is more than: a) 30 crores or more d) 60 crores or more
a) Fixed Deposits d) Call Deposits
c) 50 crores or more
11. Which of the following deposits do not attract TDS? c) Flexi Deposits
12. At present the rate of interest paid by RBI to Commercial Banks on CRR is : a) 3% b) 4% c) 5% d) No interest
d) Only for above Rs. 1000 crore CRR balance. 13. The Cash Reserve Ratio is to be maintained by Commercial Banks in the form of: a)Cash in hand at branches c)Balance in a special account with RBI e) Any of the above options. 14. Increasing Cash Reserve Ratio from time to time by Reserve Bank of India leads to: a) Decrease in deposit b) Increase in lendable resources c) Any of the above b) Increasing in deposit d) Decrease in lendable resources. b) Balance with other banks d) Funds in the currency chest
15. The interest on Marginal Standing Facility sanctioned by RBI to banks is: a) Repo rate plus 1% b) Repo Rate plus 2% c) Repo Rate plus 3% e) None of the above
c) C.Desh Mukh
17. RBI was established in 1935 pursuant to recommendation of: a) The Hilton Young Commission b) b) All India Rural Credit Survey Committee c) Gorawala Committee d) Talwar Committee e) None of the above 18. One rupee note and all coins will be issued by: a) Reserve Bank of India c) Central and State Governments collectively d) None of the above 19. Who will sign One Rupee Note? a) Governor- RBI b) Governors of concerned state governments c) Finance Secretary, Ministry of Finance d) Finance Minister e) None of the above 20. What is MSF? a) Marginal Standing Facility b) Micro and Small Finance c) Medium Size finance d) Mid Term Sanction facility e) None of the above e) All the above b) Central Government
Answers
Q Ans 1 e 2 d 3 d 4 d 5 d 6 d 7 b 8 a 9 b 10 c
Q Ans
11 e
12 d
13 c
14 d
15 a
16 a
17 a
18 b
19 c
20 a