Beruflich Dokumente
Kultur Dokumente
Bank Name
Slogan/Punch line
CITI Bank
HSBC Bank
Make it happen
BNP Paribas
Deutsche Bank
A passion to perform
Scotia Bank
Do more
Barclays Bank
Fluent in finance
DBS Bank
Allahabad Bank
A tradition of trust
Andhra Bank
Bank of Baroda
Bank of India
Bank of Maharashtra
Bank of Rajasthan
Together we Prosper
Canara Bank
Its easy to change for those who you love, Together we Can
Corporation Bank
Dena Bank
Federal Bank
HDFC Bank
HSBC
ICICI Bank
Hum Hai na
IDBI Bank
Indian Bank
J & K Bank
Serving to Empower
Oriental Bank of
Commerce
Punjab and Sindh Bank
The Nation banks on us; Pure Banking Nothing Else; With you all the way
Syndicate Bank
Knowledge is Power
UCO Bank
Vijaya Bank
Yes Bank
Important persons
Richard Miller Flanagan, an Australian novelist from Tasmania, won Man Booker Prize
for his wartime novel The Narrow Road to the Deep North.
Edward Joseph is a former system administrator for the Central Intelligence Agency
(CIA) and a counterintelligence trainer at the Defense Intelligence Agency (DIA).
Marin Cilic, a Croatian professional tennis player, won the Mens Singles title of the US
Open of Tennis.
University of Agriculture, Faisalabad, Pakistan conferred honorary degree of doctor of
Science upon Professor M S Swaminathan.
Lt. General Dalbir Singh Suhag took over as Chief of Army Staff on 31 July 2014.
The United Nations General Assembly elected by acclamation Sam Kahamba Kutesa, a
Ugandan lawyer and politician, as President of its upcoming 69th session.
Narendra Modi, a member of the Bharatiya Janata Party (BJP), was Chief Minister of
Gujarat from 2001 to 2014.
Ronnie OSullivan, an English professional snooker player from Chigwell, Essex, known
for his rapid playing style, was crowned World Snookers Player of the Year 2013-14 at
the sports annual awards ceremony in London.
George Clooney, a 52-year-old actor, who recently got engaged to British human rights
lawyer Amal Alamuddin, has stepped down as messenger of the peace.
Gabriel Garcia Marquez, the Colombian Nobel laureate and author of the bestselling
novel One Hundred Years of Solitude, died at home in Mexico City on 17 March 2014,
age 87.
India-born poet, Vijay Seshadri has won the prestigious 2014 Pulitzer Prize in the poetry
category for his collection of poems 3 Sections.
Supreme Court of India, has appointed Sunil Gavaskar, a former cricketer who played
during the 1970s and 1980s for Bombay and India, as interim working President of
BCCI primarily to oversee IPL version 7.
Noted author and journalist Khushwant Singh, an Indo-Anglian novelist, died in New
Delhi on 20 March 2014 at the age of 99.
Tomas Halik, a Roman Catholic priest won the 2014 Templeton Prize.
Veronica Michelle Bachelet Jeria, a Chilean politician, was sworn in as President of the
Republic of Chile for the second time at the National Congress in Valparaso.
Sheila Dikshit, was appointed as the 22nd Governor of Kerala on 04 March 2014.
Mexican director Alfonso Cuaron won the Oscar for best director for the space thriller,
Gravity.
Chandi Prasad Bhatt, an Indian Gandhian environmentalist and social activist, who
founded Dasholi Gram Swarajya Sangh (DGSS) in Gopeshwar in 1964, which later
became a mother-organization to the Chipko Movement, has been selected for the 2013
Gandhi Peace Prize.
Arseny Petrovych Yatseniuk was installed as Ukraines new prime minister on 27
February 2014 lunchtime amid a crisis over 27 billion euros of missing credit.
Matteo Renzi is an Italian politician who has been the Prime Minister of Italy since 22
February 2014.
Virat Kohli, a middle-order batsman, who can also bowl right arm medium pace will lead
India in the Asia cup.
New Zealand skipper Brendon McCullum became the first Kiwi batsman to hit a Test
triple-hundred.
The Union Budget of India for 20132014 was presented by the Finance Minister P.
Chidambaram Palaniappan on 17 February 2013.
SBI has launched new accounts Pehla Kadam and Pehli Udaan for kids
ICICI bank launched Smart Stars account for kids
IFC raised 100 million US dollars through Maharaja Bonds
Highest percentage of hired workers in India is in Arunachal Pradesh: 6th Economic Census
India slipped to 71st rank in World Economic Forum annual Global Competitiveness List
2014-15
SEBI allowed sharing of KYC details with entities
What is the minimum annual investment in PPF- Rs 500
Which bank has celebrated 150 years of operation in Sri Lanka- State Bank of India
What is the minimum pension required under EPFO- Rs.1000
HSBC sold its Swiss private banking assets to LGT Bank belongs
country- Liechtenstein
to which
What is the upper age limit for posts of M.D and CEO in private sector banks fixed by RBI- 70
Amount allocated for Pradhan Mantri Krishi Seenchayi Yojana- Rs.100 Crore
India signed loan agreement with World Bank for MSRP II- Mizoram State Roads Project
Who has been elected as the chairman of Indian Banks Association (IBA)- T.M. Bhasin
Which bank launched multi-currency International Debit Card- SBI
FDI in railways at present- 100%
Union government granted Navaratna Status to CONCOR
RBI cancelled the License of The Vasavi Co-Operation Urban Bank Ltd (HyderabadTelangana)
Name of the committee formed by RBI to study the feasibility of Implementation of GIRO-based
Payment systems- G.Padmanabhan
Two entities of Integrated bill payment system- BBPS and BBPOUs
Core Banking System Initiative Award-2014 for which bank- BMB
HDFC bank has launched its secure banking in Kerala
as
the
head
of
the
Expenditure
Management
New deputy governor of RBI of India who replaced former DG K.C. Chakrabarty Subash
Sheoratan Mundra
Which bank signed agreement with the Kochi Metro Rail Ltd for a loan of Rs 1,170 crore to the
Rs. 5, 200-crore kochi rail project- Canara Bank
Asian Development Bank has upgraded Indias economic growth forecast to 6.3% in 2015-16 on
hopes of speedy reform process
Minimum capital for setting up small and payment banks- 100 crore rupees
Loan given by world bank to the west Bengal government for improving thousands of Gram
Panchayats in the state- 1200 crores
Exim bank has extended USD 46 Million line of credits of Mauritius for financing goods amd
defence related vehicles purchases
SEBI barred Satyam founder Ramalinga Raju and 4 others from accessing capital markets
FDI limit in defence sector has been raised from 26% to 49%
Which bank has launched a financing scheme for women fashion boutique owners, B outique
Financing- SBI
Online Finance Facilitation center was launched by the CII
>> Download Computer Knowledge Capsule here
>> Download Quantitative Aptitude Capsule here
Which banks got in-principle nod by the Reserve Bank of India to set up banks, from a field of
25 aspirates- IDFC and Bandhan Finance Services Private Ltd
RuPay card payment network has been developed by which organization- NPCI
Fund allocated to Beti Bachao, Beti Padhao Yojana in the Union Budget 2014- Rs.100 Crores
Fund allocated to National Housing Banking Programme (NHBP)- Rs. 8000 crore
NABARD has reduced the interest rate from how many points- 20 point basis
NABARD and SFAC signed a MoU for development of Small Farm Producers
Purchasing Managers index is published by- HSBC
RBI directed all banks and Financial institutions to provide information and documents to
Special Investigation Team
India has moved up to which rank in terns of foreign money lying with swiss bank- 58th
Who released World Investment Report 2014- United Nations Conference on Trade and
Development (UNCTAD)
Union Government granted Navaratna Status to EIL and NBCC
World Bank lowered growth forecast for developing world to 4.8 percent
India became the second largest exporter of textiles in the World
2.
IDRBT (3)
3.
4.
SKOCH (3)
5.
6.
PC QUEST
7.
8.
9.
10.
11.
12.
13.
Won national award in the year 2012 for Prime Ministers Employment Generation
Programme (PMEGP) scheme
14.
15.
16.
17.
18.
Shareholders approved the re-appointment of Rana Kapoor as managing director and CEO
18 PSU banks failed to meet FY14 target of setting ATMs
IDFC Bank which recently bagged a commercial banking license, plans to start bank operations
by October next year
Kotak Mahindra bank set up ATMs at Mumbai Metro Stations
ICICI Bank overtakes HDFC Bank as top private bank employer
Syndicate Bank, Bol, BoB, others give Rs 1,157 crores for Narendra Modis dream financial hub
project in Gujarat
K Venkataraman re-appointed as MD & CEO of Karur Vysya Bank
IndusInd Bank launches Video Branch Service for Customers
Linked Account: Any account linked to another account in the same bank where funds can be
transferred electronically between accounts and carry out other specified services as well
Consumer durables loans: Loan granted by banks for purchasing of white goods
Collateral: A borrower needs to provide some kind of security to the bank in case of high ticket
loans, such security is called collateral
Floating Rate: An interest rate that is referenced to a market rate and is revised as per the
change in the interest rates in the economy. When interest rates in the economy rise, floating
rates rise and vice versa
Exchange Rate: Rate at which the domestic currency can be converted into foreign currency and
vice versa
Inflation: Decreasing the value of money in this state money looses the value hence prices will
go up
Deflation: Opposite to inflation here money will have more value and hence product looses the
value
Electronic Clearing Service (ECS): It is a service provided by the banks to facilitate direct
debit from your bank account towards an investment account (such as a mutual fund SIP) and/or
paying regular loan EMIs.
Billing Cycle: A billing cycle is a time period that covers the credit statement that usually lasts
for 25 days
Bridge Loan: It is also known as swing loan, which is basically a real estate loan or a home
loan, where the current residence/real estate is pledged by the borrower as a collateral in order to
purchase a new residence
Debit cum ATM Card: Customer can deposit and withdraw cash by means of magnetic ATM
Card
Core Banking: A centralized database with online connectivity to branches, internet as well as
ATM network which has been adopted by almost all major banks of the country
Bankassurance: When the banks entertain in dealing with insurance business then it is called as
bankassurance
Short term loan: If the repayment period of any loan is up to 36 months , then that loan is called
Short term loans
Medium term loan: If the repayment period of any loan is up to 37 to 84 months , then that loan
is called Medium term loans
Long term loan: If the repayment period of any loan more than 84 months , then that loan is
called long term loans
Grace Period: It is an interest free period that is to be given by a creditor to a debtor after the
period of the loan gets over, before initiating the process of loss recovery. The grace period
depends on the amount of the loan and also the credit score of the borrower.
Internet Banking: It is also called as e-banking or online banking, where customer can conduct
their transactions through the internet.
Life Cap: The upper and lower limit for changes in the borrowers interest rate over the term of
his/her loans
Net Income: The amount that is left after paying the taxes is called the net income.
Original Principal Balance: The amount borrowed by any borrower is called the original
principal balance
Overdraft: It is a check or rather an amount of check, which is above the balance available in
the account of the payer.
Refunding: The act of paying back the amount or returning the funds is called as refunding.
Repricing: Change in the rate of interest
Reserve Account: An account which is maintained by depositing undistributed parts of profits
for future needs is called as a reserve account
Smart Cards: Unlike debit and credit cards, smart cards possess a computer chip with magnetic
strips, which is used for data storage, processing and identification
New private-sector banks in India are Axis Bank, Bank of Punjab, Centurian Bank, Development
Credit Bank, SBI Bank, ICICI Bank, IndusInd Bank, Kotak Mahindra Bank, Yes Bank, Times
Bank (Merged with HDFC Bank Ltd.), Global Trust Bank (Merged with Oriental Bank of
Commerce), Balaji Corporation Bank Limited
Foreign Banks:
Banks which are foreign originated are called foreign banks
Regional Rural Banks (RRBS)
Regional rural banks were established on 26th September, 1975
RRBS comes under scheduled commercial banks
Main aim of RRBs is financial resources for rural/semi-urban areas and providing loans to small
and marginal farmers, agricultural labourers and rural artisans.
RRB works under supervision of NABARD (National Bank for Agricultural and Rural
Development)
Functions of RRBs:
Providing banking facilities to rural and semi-urban areas
Carrying out government operations like disbursement of wages of MGNREGA workers,
distribution of pensions etc.
Providing Para-Banking facilities like locker facilities and credit cards
Share Capital in RRBs: Central Government: 50, Sponsored bank: 35%, State govet: 15%
Co-operative Banks:
The main purpose of co-operative banks is to co-operate small scale industries, and to provide
small loans
Industrial Banks:
The main purpose of Industrial banks is provide big loans to large scale industries,
Some of the Industrial banks are IDBI bank, Industrial bank of India etc.
Details:
Going into the details of the scheme, a person who is a customer of ICICI has to follow the steps
under to be able to use this scheme.
1) Should first log into the net banking site of ICICI bank.
2) Register the recipients name, mobile number and address.
When the above steps are completed the sender will get a 4 digit verification code and the
receiver will get a 6 digit verification code. The recipient can withdraw cash from any ICICI
ATM by just entering the mobile number and the 6 digit verification code sent by the bank.
The same steps are to be followed by the customer to withdraw cash from their qon accounts
as well.
A SMALL INTRODUCTION ABOUT THE CARDLESS ATM.:
This service makes use of secure transaction platforms like one time pass words and
biometric authentications. This will thus provide an extra layer of security, in addition to the fact
that customers no longer need to carry their cards along with them (protection from theft J
J ).This avoids card skimming as well.
SOME BENEFITS OF THE SCHEME:
1) Improved customer convenience.
2) Improved security factors.
3) Improving the use of ATMs in developing countries.
Last but not the least thank you ICICI for making this possible and hope the other private as well
as the other nationalized banks would also launch similar schemes to make their customers
happy as well.
List of RBI Governors
SL.NO Name of The Governor
K.G. Ambegaonkar
H.V.R. Ienger
P.C. Bhattacharyya
L.K. Jha
B.N. Adarkar
10
S. Jagannathan
11
12
K.R. Puri
13
M. Narasimham
14
15
16
A. Ghosh
17
R.N. Malhotra
18
S. Venkitaramanan
19
Dr. C. Rangarajan
20
21
Dr. Y.V.Reddy
22
Dr. D. Subbarao
23
M.P. Bezbaruah: to suggest suitable remedial measures to address concerns regarding security
of people from North East.
Kirit Parikh panel : on fuel pricing has suggested that the diesel prices should be increased by
Rs.1-1.50 a litre every month as against the 45-50 paise monthly hike followed currently.
Deepak Mohanty Committee: on Data and Information Management in the Reserve Bank of
India
K. K. Mehrotra Committee: to inquire gas leakage in Bhilai Steel Plant.
Vishnu Sahay committee: look probe into the Muzaffarnagar communal violence.
Shri M. Narasimham Committee: on Banking Sector Reforms
Shri K.U.B. Rao Committee: recommended aligning gold import regulations
Urjit Patel Committee: to examine the current monetary policy framework.
P.J. Nayak: to review Governance of Boards of Banks in India. The committee was constituted
under the chairmanship of P. J. Nayak. He is a former Chairman and CEO of Axis Bank.
Bimal Jalan panel: to scrutinize applications for new bank licenses.
Nachiket Mor Committee: to permits NBFCs to work as Business Correspondents of banks.
Mukul Mudgal member panel to probe IPL spotfixing
Vijay Kelkar Committee was appointed by the Petroleum and Natural Gas Ministry to prepare
aroad map to make India self-sufficient in oil and natural gas by 2030.
B. Sambamurthy: panel favours single mobile banking app on all SIMs. Panel recommended
that customers should not be required to visit the bank branch for mobile number registration.
Justice A.P. Shah committee: to head panel on road safety
Arvind Mayaram Committee for giving clear definitions to Foreign Direct Investment (FDI)
and Foreign Institutional Investment (FII)
Anil Kaushal committee: to examine the recommendations made by the TRAI on pricing of
Spectrum.
Parthasarathi Shome. for Tax Administration Reform Commission (TARC), Suggest a system
to enforce better tax compliance
Nachiket Mor: committee on comprehensive financial services for small businesses and low
income households.
K U.B. Rao: the idea of setting up Bullion Bank or Bullion Corporation of India
Arvind Mayaram Panel: report on the alleged irregularities at the National Spot Exchange Ltd
(NSEL)
Suma Verma Committee: to update, and revise the Banking Ombudsman Scheme, 2006
Damodran Committee: on improvement of customer services in banks
K M Chandrasekhar committee: for rationalization of foreign investment norms
Shri Pulak Kumar Sinha Committee: to study the feasibility of Aadhaar as an additional factor
for authentication of card present transactions.
Appropriation Bill : It is presented to parliament for its approval, so that the government can
withdraw from the Consolidated fund the amounts required for meeting the expenditure charged
on the Consolidated Fund. No amount can be withdrawn from the Consolidated Fund till the
Appropriation Bill is voted is enacted.
Call Money: Itner Bank call market is a part of the domestic money market from where banks
borrowed and lent for one day called as Money at call and for a period more than 1day & upto
14days is called Short notice or Notice money without any collateral security. Money lend for
15days or more is called Term money.Normally funds are borrowed for 1 day and upto 3 days on
weekends just to balance the Cash Reserve Ratio.
Nostro Account: When national bank is opened in foreign with currency is known as Nostro a/c.
e.g. State bank india branch in USA.
CIBIL {Credit Information Bureau (India) Limited} : An effective mechanism for exchange
of information between banks and Financial Institutions for curbing the growth of NPAs.
Currency War: This is the other form of Protectionism. In this the tendency of every nation is
that the value of their currency should not appreciate. The big example of this is CHINA that is
holding their currency since 2008. It could be a cause of future Trade war.
Capital Budget: It consists of capital receipts and payments. It also incorporates transactions in
the Public Account. It has two components Capital Receipts and Capital Expenditure.
Repo Rate: Repo rate means a purchase and sale of agreement. It is a contract to buy securities
and then sell them back at an agreed future date and price. It is thus revenue for short term
investment of surplus funds. From RBI point of view it is called a short term lending and from
banks point of view it is called short term borrowing.
Reverse Repo rate : Reverse Repo Rate is an instrument of borrowing funds for a short period
and involves selling a security and simultaneously agreeing to repurchase it at a stated future
date for slightly higher price. From RBI point of view it is called a short term borrowing and
from banks point of view it is called a short term lending.
Group Company : As per RBI for the purpose of FDI, two or more enterprise which , directly
or indirectly , are in position to exercise 26% or more of voting rights in other enterprise or
appoint more than 50% of the members of the board of directors in the other enterprises.
Branch Vs Subsidiary: A subsidiary is a separate legal entity from the parent company,
although owned by parent company, has a same legal identity as its parent company , from
liability , on the other hand branch is not a separate legal entity of the parent company and
liability wise there is no limit to the parents companys liability , RBI has permitted to Foreign
Banks to change from Branch Mode to the Wholly Owned Subsidiaries.
NFS (National Financial Switch): It facilitates interconnectivity between banks switches and
interbank payment Gateway for authentication & routing the payment details of various E-
commerce & E-Govt. activities (Retail Banking). Now NFS has been overtaken by NPCI
(National Payment Corporation of India).
SLR (Statutory Liquidity Ratio): This is a minimum Reserve which every bank has to
maintain with itself in the most liquid form to meet any demand of the depositors. Normally
Government securities are purchased to maintain SLR.
Prime Lending Rate (PLR): The term originally indicates the rate of interest at which a bank
lends to favored customers, i.e. those with high credibility, though this is no longer always the
case. Some variable interest rates may be expressed as a percentage above or below prime rate.
Sub Prime Rate: In India when money is lent below the PLR is known as Sub Prime Rate
whereas in USA when money is lent at rate above the PLR is known as Sub Prime rate.
Base Rate: As per recommendation of Mr. Deepak Mohanty of RBI to bring a complete
transparency in Banks lending system, in Indian Banking system the loan were sanctioned to the
large corporate houses even below the PLR and some time it were fixed very low without any
justification. A Base rate recommends that no bank will lend any money below the base rate.
With this there shall be no extra benefits to the large corporate houses. Base rate will be
beneficial for the regulator RBI. Now all Banks will either lend at Base rate or will park money
with RBI, under LAF system. Base rate has been implemented from 1st july, 2010.
GDRs (Global Depository Receipts): It is a dollor denominated instrument, an easy way of
raising funds from foreign countries. It is a mechanism that allows foreign investor to invest in
Indian Companies. Represents a certain number of equity shares on Indian companies. GDRs are
issued by depository usually American Banks & Indian shares are held by custodian in India
(like ICICI). Traded in stock exchanges in Europe or in US or both.
IPO (Initial Public Offer): 1st sale of stock by a company to the public .IPOs offer issued by
smaller younger co. seeking the capital to extend. It can also be done by large company.
FPO (Follow on Public Offer ) : A public company already listed on an exchange, a
supplementary shares made by a company that is already publicly listed & has gone thru the IPO
process, it is also called as secondary public offering subsequent to the companys IPO.
Zero Liability Protection: It is a bank guarantee. If your card is lost or stolen you may not be
responsible for unauthorized purchases made with your card if you report the theft promptly. The
Zero liability protection facility is free & automatically available on all bank consumer Credit
Cards.
Vostro Account: When a foreign Bank is opened in the India with Indian Currency is known as
Vostro account e.g. Standard Chartered Bank in India.
SWAPS: It is a transaction where the bank purchases or sells the foreign currency
simultaneously, for different maturities, say purchases of spot and sale of forward or vice versa.
Swap contracts obligate 2 parties to swap or exchange certain specified intervals. Swaps are not
the instruments for raising funds rather they allow better management of existing funds.
BANKING OMBUDSMAN
Banking Ombudsman is a quasi judicial authority functioning under Banking Ombudsman
Scheme 2006.It provides independent, expeditious and inexpensive forum to aggrieved/Unsatisfied Bank customers. RBI introduced this Scheme under powers granted U/s 35-A of
Banking Regulation Act.
Complaints are accepted only if they are made within one year after the complaint has received
the reply from bank.
Types of Complaints :
1.
Non-payment or inordinate delay in the payment or collection of cheques, drafts ,bills etc.
2.
Non-acceptance, without sufficient cause, of coins tendered and for charging of
commission for this service.
3.
Non-acceptance without sufficient cause of small denomination notes tendered for any
purpose and for charging of commission for the service.
4.
5.
6.
7.
8.
Failure to provide or delay in providing a banking facility promised in writing by a bank or
its direct selling agents.
9.
Delays, non-credit of proceeds to partiesaccounts, non-payment of deposit or nonobservance of the Reserve Bank directives, if any applicable to rate of interest on deposits in any
savings, current or other account maintained with a bank.
10. Delays in receipts of export proceeds, handling of export bills, collection of bills etc. for
exporters provided the said complaints pertain to the Banks operations in India.
11. Refusal to open deposit accounts without any valid reason for refusal.
12. Levying of charges without adequate prior notice to the customers.
13. Non-adherence by the bank or its subsidiaries to the instructions of Reserve Bank on
ATM/debit card operations or credit card operations.
14. Non-disbursement or delay in disbursement of pension to the extent the grievance can be
attributed to the action on the part of the Bank concerned but not with regard to its employees.
15. Refusal to accept or delay in accepting payment towards taxes, as required by Reserve
Bank/Government.
16. Customers should have complained to the concerned Bank first and wait for one
month. Complaint to Ombudsman can be writing or in electronic mode.
Award :
Ombudsman can give maximum award upto Rs.10 Lacs.
E-Banking
E- banking refers to electronic banking. It is like e-business in banking industry. E-banking
is also called as virtual banking or online banking. E-banking is a Result of the growing
expectations of bank customers. E-banking involves information technology based banking.
Under this IT system the banking services are delivered by way of a computer-controlled system.
This system involves direct interface with the customers. The customers need not to visit bank
premises
Popular services covered under E-banking
1. Automated teller machine, 2. Credit card, 3. Debit card, 4. Smart card, 5. Electronic funds
Transfer system, 6. Cheque truncation system, 7. Mobile banking, 8. Internet banking,
9. Telephone banking
Automated teller machine
ATM is designed to perform the most important function of bank. it is operated plastic card
with its special features. The plastic card has replaced cheque Personal attendance of the
customer banking hours restrictions and paper based verification. These are debit cards. An ATM
is an electronic funds Transfer terminal capable of handling cash deposits Transfer between
accounts balance enquires, cash withdrawals and pay bills. It may be online or Offline. Any
customer processing ATM card issued by the shared payment network system can go to any ATM
linked to shared payment networks and perform his transactions
Credit card/ Debit card
The Credit card holder is empowered to spend wherever and whenever he wants with his
Credit card within the limits fixed by his bank. Credit card is a post paid card. Debit card
considered as a prepaid card with usage facility limited to the balance in the linked deposit
account of the cardholder. An individual has to open an account with the issuing bank which
gives debit card with a Personal identification number. When he makes purchases he enters his
pin on shops pin pad. When the card is slurped through the electronic terminal it dials the
acquiring bank system -either master card or VISA that validates the pin and finds out can never
overspend because the system rejects any transactions which exceeds the balance in his account.
The bank never faces a default because the amount spent is debited immediately from the
customers account.
Smart card
Banks are adding chips to their current magnetic stripe cards in order to enhance security
and offer new services that are called smart cards. Smart cards allow
Thousands of times of information storable on magnetic stripe cards. In addition these cards are
highly secure, more reliable and perform multiple functions. They hold a large amount of
Personal information ranging from medical and health history to Personal banking and personal
preferences.
Services of E-banking
E-banking provides a multitude of services that are as follows
1. Bill payment service
E-banking facilitates the payment of electricity bills, telephone bills, Credit card, and
insurance premium bills. And the bank does not charge customers for online payments
2. Fund Transfer
You can Transfer any amount from one account to another of the same or any another
bank. Customers can send money anywhere in India.
3. Credit card customers
With internet banking customers cannot only pay their credit card bills online but also
get a loan on their cards. In case of loss of the credit card an online reporting can be done.
4. Investing through internet banking
Now, FD can be opened on line through funds Transfer and investors with interlinked
demit account and bank account can easily trade in the stock market.
5. Recharging prepaid mobile
By just selecting the operator name entering the mobile number and the amount of
Recharge the mobile phones can be back in action within few minutes.
6. RTGS fund Transfer
RTGS is an inter Bank funds Transfer system. Where are Transferred as end when the
transactions are tiggered.
7. Shopping
Online Shopping can also be done with a range of all kind of products. Railway and air
tickets can be bought through the internet banking.
8. Online payment of taxes.
A customer can pay various taxes on line including excise and service tax direct tax etc.
Electronic funds Transfer
Electronic funds Transfer provides for electronic payments and collections. EFT is safe
secure, efficient and less expensive than paper check payments and collections . RBI EFT is a
scheme introduced by RBI to help banks offering their customers money Transfer service from
account to account to any branch to any other bank branch in places where services are offered.
Internet banking
Through internet banking you can check your transactions at any time of the day and as
many times as you want to. Where as in a traditional method you get quarterly statements from
the bank. If the fund Transfer has to be demand outstation where the bank does not have a branch
the bank would demand outstation charges. Whereas with the help of online banking.
Mobile banking transactions
Now banks have started offering mobile banking and telemarking to their customers. The
expansion in the use and geographical reach of mobile phones has created new opportunities for
banks to use this mode for banking transactions and also provide an opportunity to expand
banking facilities to the excluded sections of the society.
4. Safe savings along with Financial services:- People will have safe savings along with other
allied services like insurance cover, entrepreneurial loans payment and settlement facility etc.
5. Increasing National income:- boosting business opportunities will definitely increase GDP
that will be reflected in our National income growth.
6. Becoming global player:- Financial access will attract global market players to our country
that would Result in increased Employment and business oppurtunities.
Banking Codes and Standards Board of India: It is a industry watch dog set up by RBI to
monitor and assess the compliance with codes and minimum standards of service to individual
customers, as prescribed by the RBI.
Credit Information Report: A Credit Information Report is a factual record of a borrowers
credit payment history compiled from information received from different credit grantors. Its
purpose is to help credit grantors make informed lending decisions-quickly and objectively.
Credit Rating: Credit Rating is an assessment of the probability of default on payment of
interest and principal on a debt instrument. In simple words, it ranks the company or countrys
ability to meet their debt obligations.
Introduction
There are certain documents used for payment in business transactions and are Transferred
freely from one person to another. Such documents are called negotiable Instruments like
cheque, bank draft, bill of exchange, promissory notes etc. Thus we can say negotiable
Instruments are a transferable document where negotiable means transferable and Instrument
means document. According to section 13 of the negotiable Instruments act 1881. A negotiable
Instrument means promissory note bill of exchange or cheque payable either to order or to
bearer.
Features of a Negotiable Instrument
1. It is a written document
2. A negotiable Instrument payable to bearer is transferable merely by delivery whereas a
Negotiable Instrument payable to order is transferable by endorsement and delivery.
3. The holder of a Negotiable Instrument can sue upon it in his own name.
4. Its works in the same manner as money and like money it may also be transferred from one
person to another.
5. The Transferor does not need to give notice to any person at the time of transferring the
Instrument.
6. It is the simplest and most convenient mode of assignment of a debt.
7. The tittle to the Instrument received by a bonafide transferee is not affected by defect in the
title of the transferor.
A. Negotiable Instruments
1. A bill must be in writing, duly signed by its drawer accepted by its drawee and properly
stamped as per Indian stamp act.
2. It must contain an order to pay words like please pay rs.5000 on demand and oblige are not
used.
3. The order must be unconditional.
4. The order must be to pay money and money alone.
5. The sum payable mentioned must be certain or capable of being made certain.
6. The parties to bill must be certain.
Cheque
A cheque is a bill of exchange drawn on a specified banker and not expressed to be
payable otherwise than on demand. It is an unconditional order in writing be drawn by a
customer on his bank. Requesting the specifying bank to pay on demand a certain sum of money
to a person named in the cheque or to the bearer or to the order of a stated person.
A cheque being a bill of exchange must possess the following requirements.
1. A cheque must be drawn upon a specified banker
2. A cheque must be payable on demand.
3. A cheque must be signed by the drawer.
4. A cheque must be an unconditional order to pay a certain amount of money.
5. A cheque be dated.
Types of cheque
1. Open cheque:- A cheque is called open when it is possible to get cash over the counter at the
bank.
2. Crossed cheque:- Since open cheque is subject to risk of theft it is dangerous to issue such
cheques. This risk can be avoided by issuing other types of cheque called crossed cheque.
3. Bearer cheque:- A cheque which is Payable to any person who presents it for payment at the
bank counter is called bearer cheque.
4. Order cheque:- An order cheque is one which is payable to a particular person. In such a
cheque the word bearer may be cut out or cancelled and the word order may be written. The
payee can transfer an order cheque to someone else by singing his or her name on the back of it..
Indian Currency
Name of the Indian Currency: The Indian Currency is called the Indian rupee and the coins are
called paisa. One rupee consists of 100 paisa.
Present denominations of bank notes in India: At Present notes in India are issued in the
denomination of Rs.5, 10, 20, 50, 100, 500 and 1000. These notes are called bank notes as they
are issued by the RBI. The printing of notes in the denominations of Rs.1 and Rs.2 has been
discontinued as these denominations have been coinised. However such notes issued earlier are
still in circulation. The printing of notes in the denomination of Rs.5 had also been discontinued
however it has been decided to reintroduce these notes in order to meet the gap between the
demand and supply of coins in this denomination.
Present available denomination of coins in India: Coins in India are available in
denominations of 50 paisa, one rupees , two rupees , five rupees and ten rupees up to 50 paisa
are called small coins and coins of rupee one and above are called rupee coins.
Can bank notes and coins be issued only in these denominations: Not necessarily. The RBI
can also issue notes in the denominations five thousand rupees and ten thousand rupees or any
other denomination that the central Government may specify. There cannot through be notes in
denominations higher than ten thousand rupees in terms of the current provisions of the RBI act
1934. Coins can be issued up to the denomination of Rs.1000
The role of the RBI in Currency management: The RBI manages Currency in India. The
Government on the advice of the RBI decides on the various denominations. The RBI also
coordinates with the Government in the designing of bank notes including the security features.
The RBI estimates the quantity of notes that are likely to be needed denomination wise and
places the indent with the various security presses through the Government of India. The notes
received from the security presses are issued and a reserve stock maintained. Notes received
from banks and Currency chests are examined. Notes fit for circulation are reissued and the
others are destroyed so as to maintain the quality of notes in circulation. The RBI derives its role
in Currency management on the basis of the RBI act 1934.
The role of Government of India: The responsibility for coinage vests with Government of
India on the basis of the coinage act 1906 as amended from time to time. The designing and
minting of coins in various denominations is also attended to by the Government of India.
Who decides on the volume and value of bank notes to be printed and on what basis: The
RBI decides upon the volume and value of bank notes to be printed. The quantum of bank notes
that needs to be printed broadly depends on the annual increase
In bank notes required for circulation purposes replacement of soiled notes and reserve
requirements.
Who decides on the quantity of coins to be minted: The Government of India decides upon the
quantity of coins to be minted.
How does the reserve bank reach the Currency to people: The RBI manages the Currency
operations through its offices located at Ahmedabad, Bengaluru, Bhopal, Bhubaneswar, Jaipur,
Kanpur, luck now, Mumbai, Nagpur, New Delhi, Patna, and Thiruvananthapuram? These offices
receive fresh notes from the note presses. Similarly the RBI offices located at Kolkata,
Hyderabad, Mumbai and New Delhi initially receive the coins from mints. These offices then
send them to the other offices of the reserve bank. The notes and rupee coins are stocked at the
Currency chests and small coins at the small coin depots. The bank branches receive the bank
notes and coins from the Currency chests and small coin depots for further distribution among
the public.
What is a Currency chest: To facilities the distribution of notes and rupee coins the RBI has
authorized select branches of banks to establish Currency chests . These are actually storehouses
where bank notes and rupee coins are stocked on behalf of the reserve bank. At Present there are
over 4422 Currency chests. The Currency chest branches are expected to distribute notes and
rupee coins to other bank branches in their area of operation.
What is a small coin : Some bank branches are also authorized to establish small coin depots to
stock small coins. There are 3784 small coin deposits spread throughout the country.
What happens when the notes and coins return from circulation: Notes and coins returned
from circulation are deposits at the offices if the reserve bank. The reserve bank then separates
the notes that are fit for reissue and those which are not fit for reissue. The notes which are fit for
reissue are sent back in circulation and those which are unfit for reissue are destroyed after
processing and shredding. The same is the case with coins. The coins with drawn are sent to the
mints for melting
From where can the General public obtain bank notes and coins: Banks notes and coins can
be obtained at any of the offices of the reserve bank and at all branches of banks maintaining
Currency chests and small coin deposits.
Why are Rs.1, Rs.2, and notes not being printed: volume wise the share of such small
denomination notes in the total notes in circulation was as high as 57 percent but constituted only
7 percent in terms of value. The average life of these notes was found a year. The cost of printing
and servicing these notes was thus not commensurate with their life. Printing of these notes was
therefore discontinued. These denominations were Therefore coinised However it has been
decided that notes in the denomination of Rs.5 be re-introduced so as to meet the gap between
the demand and supply of coins in this denomination.
Soiled and mutilated notes: soiled notes are notes which have become dirty and limp due to
excessive use. Mutilated notes are notes which are torn disfigured burnt, washed, eaten by white
ants etc. A double numbered note cut into two pieces but on which both the numbers are in fact is
now being treated as soiled note.
Can such notes be exchanged for value: Yes soiled notes can be tendered at all bank branches
for and exchange obtained.
How much value would one get in exchange of soiled or mutilated notes: Full value is
payable against soiled notes. Payment of exchange value of mutilated notes is governed by the
reserve bank of India rules 1975. These rules have been framed under section 28 of the RBI 134.
What if a note is found to be non-payable: Non-payable notes are retained by the receiving
banks and sent to the reserve bank where they are destroyed.
Where soiled mutilated notes accepted are: All banks are authorized to accept soiled notes
across their counters and pay the exchange value. They are expected to offer these services even
to non-customers. All public sector bank branches and Currency chest branches of private sector
banks are authorized to adjudicated and pay value in respect of mutilated notes. The RBI has also
authorized all commercial bank branches to treat certain notes in two pieces as soiled notes and
pay exchange value.
Special features Introduced in the notes of Mahatma Gandhi series: The new mahatma
Gandhi series of notes contain several special features the notes issued earlier these are:
Latent Image : A vertical band behind on the right side of the mahatma Gandhi portrait which
contains which contains latent image showing the denominational value 20, 50, 100, 500, 1000
as the case may be.
Introduction
India has had more than a decade of Financial sector reforms during which there has been
substantial Transformation and liberalization of the whole Financial system
Objectives of Financial sector reforms in India.
1. Reforms Financial repression that existed earlier
2. Create an efficient productive and profitable Financial sector industry
3. Enable price discovery particularly by the market determination of interest rates that then
helps in efficient allocation of resources
4. Provide operational and function autonomy to institutions
5. Prepare the Financial system for increasing international Competition
6. Open the external sector in a calibrated fashion
Narasimham committee report 1991 &1998
The narasimham committee was set up in order to study the problems of the indian Financial
system and to suggest some recommendations for improvement in the efficiency and
productivity of the Financial institution
The committee had given the following major recommendations:
1. Reduction in SLR and CRR : The committee recommeded the Reduction of the higher
proportion of the statutory liquidity ratio and cash reserve ratio . Both of these ratios were very
high at that time. The SLR the was 38.5 percent and crr was 15 percent . This high percentage of
SLR and CRR meant locking the bank resources for govt uses. SLR was recommeded to be from
38.5 to 25 percent and CRR from 15 percent and 3.5 percent
2. Phasing out of directed Credit programme : in india since Nationalization directed Credit
programmes were adopted by the Government . The committee recommed Phasing out of this
programme. This programme compelled banks to earmark their Financial resources for the
needy and poor sectors at concessional rates of interest
3. Interest rate determintaion: The committee felt that the interest rates in india were regulated
and controlled by the authorities . The committee recommeded eliminating Government controls
on interest rates and Phasing out the concessional interest rates for the priority sector.
4. Structural re organizations of the banking sector: The committee recommeded that the
actual number of public sector banks need to be reduced. Three to four large banks including SBI
should be developed as international banks. Eight to ten banks having nationwide presence
should concerntrate in the National and unverisal banking services.
Local banks should concerntrate on region specific banking . Regarding RRBs it recommeded
that they should focus on agr culture and rural financing
5. Establishment of the ARF and tribunal: The proporation of bad debts and non performing
assets of the public banks and Development Financial institute was veey alarming in those days.
The committee recommeded the Establishment of an assets reconstruction fund . This fund
would take over the proporation of the bad and doubt ful debts from the banks and Financial
institutes. It would help banks to get rid of bed debts.
6. Removal of dual control : The committee recommeded the stopping of this system. it
considered and recommeded that the RBI should be the only main agency to regulate banking in
india
7. Banking autonomy : The committee recommeded that the public sector banks should be free
and autonomous. Banking technology upgradation would thus be easy.
Narasimham committee report II 1998
In 1998 the Government appointed yet another committee under the chairmanship of
Mrt.Narasimham. It better known as the banking sector committee. It was told to review the
banking reform progress and design a programme for further strengthening the Financial system
of india the committee focused on various areas such as capital adequacy bank mergers bank
legislation,
It submitted its report to the Government in April 1998 with the following recommendations:
1. Strengthening the banks in india
2. Narrow banking
3. Capital adequacy ratio
4. Bank owership
5. Review of banking laws
Apart from these major recommendations the committee has also recommended faster
computerization , technology upgradation , training of staff, depoliticizing of banks,
professionalism in banking , reviewing bank recruitment etc.
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