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Study Material for

Promotion Process of
Officers- 2016

Compiled by

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

Mobile No.- 9969573721.

e-mail –

( For Private Circulation only )

(Information, Data collected from various Books, Magazines, News papers, Reading Material & Websites)
Recent GoI Initiatives and RBI Guidelines-
IRAC Norms- If any credit facility availed of by the issuer is classified as NPA in the books of
the FI, investment in any of the securities, including preference shares issued by the same issuer
would also be treated as NPI and vice versa. However, if only the preference shares are
classified as NPI, the investment in any of the other performing securities issued by the same
issuer may not be classified as NPI and any performing credit facilities granted to that borrower
need not be treated as NPA.

The preference share are subordinate to bank loans and therefore it is possible that the
borrowing company is generating enough surplus to service the bank loan, but not to pay
dividend on the preference shares. In addition, the non-payment of dividend on preference shares
does not expose the borrowing entity to the risk of initiation of bankruptcy proceedings by the
holders of the preference shares. Therefore, it is not necessary to downgrade loans in a situation
where the investments in the preference shares had become non-performing investments.
However, the converse is not true. If a loan becomes non-performing, the investment in
preference shares being subordinate to bank loans will have certainly turned non-performing.

The banks should inform, at least one month in advance, the existing account holders of any
change in the prescribed minimum balance and the charges that may be levied if the prescribed
minimum balance is not maintained. With effect from May 6, 2014, banks are not permitted to
levy penal charges for non-maintenance of minimum balances in any inoperative account.

Fixed/Term deposit accounts are opened with operating instructions ‘Either or Survivor’, the
signatures of both the depositors need not be obtained for payment of the amount of the deposits
on maturity. However, the signatures of both the depositors may have to be obtained, in case the
deposit is to be paid before maturity. If the operating instruction is ‘Either or Survivor’ and one
of the depositors expires before the maturity, no pre-payment of the fixed/term deposit may be
allowed without the concurrence of the legal heirs of the deceased joint holder. This, however,
would not stand in the way of making payment to the survivor on maturity.

In case the mandate is ‘Former or Survivor’, the ‘Former’ alone can operate/withdraw the
matured amount of the fixed/term deposit, when both the depositors are alive. However, the
signature of both the depositors may have to be obtained, in case the deposit is to be paid before
maturity. If the former expires before the maturity of the fixed/term deposit, the ‘Survivor’ can
withdraw the deposit on maturity. Premature withdrawal would however require the consent of
both the parties, when both of them are alive, and that of the surviving depositor and the legal
heirs of the deceased in case of death of one of the depositors.

Banks should ensure that any remittance of funds by way of demand drafts/mail transfers /
telegraphic transfers or any other mode and issue of travellers cheques for value of Rs.50,000 /-
and above is effected only by debit to the customer’s account or against cheques or other
instruments tendered by the purchaser and not against cash payment .

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

Duplicate draft, in lieu of lost draft, up to and including Rs.5,000/- may be issued to the
purchaser on the basis of adequate indemnity and without insistence on seeking non payment
advice from drawee office irrespective of the legal position obtaining in this regard. Banks
should issue duplicate Demand Draft to the customer within a fortnight from the receipt of such

The transaction limit of Rs.50,000/- per customer per day has been done away with for mobile
banking transactions. However, banks may place per transaction limits based on their own risk
perception with the approval of its Board.

Banks are required to implement the recommendation of the Goiporia Committee that
dishonoured instruments are returned / dispatched to the customer promptly without delay, in any
case within 24 hours.

Banks should settle the claims in respect of deceased depositors and release payments to
survivor(s) / nominee(s) within a period not exceeding 15 days from the date of receipt of the
claim subject to the production of proof of death of the depositor and suitable identification of
the claim(s), to the bank's satisfaction.

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

(EWS) and low income groups (LIG) borrowers, the Reserve Bank issued instructions on March
5, 2015 that in cases where the cost of the house/dwelling unit does not exceed Rs.10 lakh,
banks may add stamp duty, registration and other documentation charges to the cost of the house/
dwelling unit for the purpose of calculating Loan to Value (LTV) ratio.

The Reserve Bank advised authorised dealers category-I (AD Category- I) banks that with effect
from on April 8, 2015, foreign direct investment (FDI) in insurance sector shall be permitted up
to 49 percent subject to the revised conditions.

The Reserve Bank on May 11, 2015 advised all public sector banks and select private sector and
foreign banks to appoint an internal ombudsman, designated as Chief Customer Service Officer
(CCSO) to further boost the quality of customer service and to ensure that there is undivided
attention to resolution of customer complaints in banks.

The Reserve Bank, on June 1, 2015, permitted all banks authorised to deal in foreign exchange/
all authorised money changers (AMCs) / full-fledged money changers (FFMCs) to allow
remittances by a resident individual up to USD 250,000 per financial year for any permitted
current or capital account transaction or a combination of both.

The Reserve Bank, on June 25, 2015, issued Rs. 100 denomination banknotes in Mahatma
Gandhi Series – 2005 with a new numbering pattern. In these notes, the numerals in both the
number panels of these banknotes are in ascending size from left to right, while the first three
alphanumeric characters (prefix) remain constant in size.
The Reserve Bank, on July 15, 2015, announced the constitution of a Committee (Chairman-
Shri Deepak Mohanty, Executive Director) with the objective of working out a medium-term
(five year) measurable action plan for financial inclusion.

As part of the endeavour to smoothen the liquidity management operations, the Reserve Bank,
on July 27, 2015 introduced Straight Through Processing (STP) in fixed rate Liquidity
Adjustment Facility (LAF) Repo, fixed rate LAF Reverse Repo and Marginal Standing Facility
(MSF) operations.

The Central Government on August 20, 2015, declared the second and the fourth Saturday of
every month as public holiday for banks in India, whether or not such banks are included in the
Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934), with effect from
September 1, 2015. Banks will, however, function full time as on any working day on first, third
and fifth Saturday of every month.

The Reserve Bank, on August 27, 2015 enhanced the limit for cash withdrawal at Point of Sale
(POS -for debit cards and open system prepaid cards issued by banks in India) from Rs. 1000/- to
Rs. 2000/- per day in Tier III to VI centres. Customer charges, if any, levied on cash
withdrawals shall not exceed one per cent of the transaction amount at all centres irrespective of
the limit of Rs.1000 / Rs. 2000.

The Reserve Bank announced the designation of State Bank of India and ICICI Bank Ltd. as
Domestic Systemically Important Banks (D-SIBs) on August 31, 2015.

The Reserve Bank on September 24, 2015, put into circulation banknotes in the denominations
of Rs. 500 and Rs. 1000 incorporating three new/revised features - (i) ascending size of
numerals in the number panels, (ii) bleed lines, and (iii) enlarged identification mark.

The Reserve Bank, on October 22, 2015 directed all scheduled commercial banks (excluding
regional rural banks) on implementation of the Gold Monetisation Scheme, 2015 (GMS)
notified by the Central Government.

The Reserve Bank, on November 24, 2015, granted ‘in principle’ approval to the National
Payments Corporation of India (NPCI) to function as the Bharat Bill Payment Central Unit
(BBPCU) in Bharat Bill Payment System (BBPS).

The Reserve Bank on December 17, 2015, announced the Marginal Cost of Funds
Methodology for Interest Rate on Advances. All rupee loans sanctioned and credit limits
renewed with effect from April 1, 2016 will be priced with reference to the Marginal Cost of
Funds based Lending Rate (MCLR) which will be the internal benchmark for such purposes.

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

Under the Liberalised Remittance Scheme, Authorised Dealers may freely allow remittances
by resident individuals up to USD 2,50,000 per Financial Year (April-March) for any permitted
current or capital account transaction or a combination of both. The Scheme is not available to
corporates, partnership firms, HUF, Trusts, etc.

PMJDY Scheme Details-

Pradhan Mantri Jan-Dhan Yojana (PMJDY) is National Mission for Financial Inclusion to ensure
access to financial services, namely, Banking/ Savings & Deposit Accounts, Remittance, Credit,
Insurance, Pension in an affordable manner.
Account can be opened in any bank branch or Business Correspondent (Bank Mitr) outlet.
PMJDY accounts are being opened with Zero balance. However, if the account-holder wishes to
get cheque book, he/she will have to fulfill minimum balance criteria.

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

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

address has changed, then a self certification of current address is sufficient.
2. If Aadhaar Card is not available, then any one of the following Officially Valid
Documents (OVD) is required: Voter ID Card, Driving License, PAN Card, Passport &
NREGA Card. If these documents also contain your address, it can serve both as “Proof
of Identity and Address”.
3. If a person does not have any of the “officially valid documents” mentioned above, but it
is categorized as ‘low risk' by the banks, then he/she can open a bank account by
submitting any one of the following documents:
a. Identity Card with applicant's photograph issued by Central/State Government
Departments, Statutory/Regulatory Authorities, Public Sector Undertakings,
Scheduled Commercial Banks and Public Financial Institutions;
b. Letter issued by a gazette officer, with a duly attested photograph of the person.

Special Benefits under PMJDY Scheme-

a. Interest on deposit.
b. Accidental insurance cover of Rs.1.00 lac
c. No minimum balance required.
d. Life insurance cover of Rs.30,000/-
e. Easy Transfer of money across India
f. Beneficiaries of Government Schemes will get Direct Benefit Transfer in these accounts.
g. After satisfactory operation of the account for 6 months, an overdraft facility will be
h. Access to Pension, insurance products.
i. Accidental Insurance Cover, RuPay Debit Card must be used at least once in 45 days.
j. Overdraft facility upto Rs.5000/- is available in only one account per household,
preferably lady of the household.

Kerala and Goa have become the first states in the country to provide one basic bank account to
every household, as per the Pradhan Mantri Jan Dhan Yojana (PMJDY). The Union Territories of
Chandigarh, Puducherry and Lakshadweep, and three districts of Gujarat - Porbandar, Mehasana and
Gandhi Nagar - have also followed suit.

Pension Fund Regulatory & Development Authority (PFRDA) is the prudential Regulator for the
National Pension System (NPS). PFRDA was established by the Government of India, Ministry
of Finance to promote old age income security.

CRA- Central Recordkeeping Agency

Stock Holding Corporation of India Limited acts as custodian of investment under NPS.
PFRDA have appointed AXIS Bank as its Trustee Bank with effect from 01st July 2013 for
functioning as NPS Trustee Bank.

Our Bank has entered into an agreement with the Pension Fund Regulatory & Development
Authority (PFRDA) to function as Aggregator. The Capital Market Service (CMS) Branch,
Mumbai, [BIC: 5076] is the Oversight Office for NPS- Lite operations of our Bank.

Swavalamban Scheme- It will be applicable to all citizens in the unorganised sector who join
the NPS administered by the Pension Fund Regulatory and Development Authority (PFRDA).

Under the scheme, Government will contribute 1000 per year to each NPS account opened after
FY 2010-11 up to FY 2016-17. The benefit will be available only to persons who join the NPS
with a minimum contribution of 1000 and maximum contribution of 12000 per annum.

PAHAL- Pratyaksh Hanstantrit Labh

DBTL- Direct Benefit Transfer-LPG

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

Textiles(MOT) was introduced in 1999 to catalyze investment in all the sub sectors of Textile
Industry for Technology upgradation of the machinery by way of interest reimbursement. On
receipt of subsidy from MOT, Banks has to transfer the amount of subsidy into beneficiaries
account with in a period of 3 days.

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

The Reserve Bank advanced RTGS business hours to 8:00 hours from 9.00 hours and extended
closing time of RTGS to 20.00 hours on week days. RTGS business window remains open from
8.1 hours to 15.30 hours on Saturdays. Customer transaction cut-off time has not been changed.

The Reserve Bank released “Guidelines for Licensing of Payments Banks’’ . Guidelines aimed
at financial inclusion by providing (a) small savings accounts, and (b) payments/remittance
services to migrant labour workforce, low income households, small businesses, other

unorganised sector entities and other users. Guidelines included parameters for eligible
promoters; scope of activities: deployment of funds: capital requirement. ‘’Guidelines for
Licensing of Small Finance Banks in the Private Sector’’ were also issued.

The Reserve Bank advised all scheduled commercial banks that with effect from November 1,
2014, (i) they can not charge any fees to their savings bank customers for five transactions
(inclusive of both financial and non-financial) in a month carried out at other bank ATMs
irrespective of the location of the ATMs; (ii)Three transactions would be free of charge if carried
out at other bank ATMs located in six metro centres, namely, Mumbai, New Delhi, Chennai,
Kolkata, Bengaluru and Hyderabad. Banks are, however, free to offer more number of free
transactions per month at other bank ATMs in any geographical location.

Rural bank branches were mandated by RBI to conduct minimum of one financial literacy camp
in a month.

The Reserve Bank advised banks that a minor of any age could open a savings/fixed/recurring
bank deposit account through his/her natural or legally appointed guardian; Minors above the age
of 10 years should be allowed to open and operate savings bank accounts independently, if they
so desire. On attaining majority, the minor should confirm the balance in his/her account and if
the account is operated by the natural guardian/legal guardian, fresh operating instructions and
specimen signature of the erstwhile minor should be obtained and kept on record for all
operational purposes.

The name of “Bharatiya Mahila Bank Limited” has been included in the Second Schedule to
the Reserve Bank of India Act, 1934.

The nomenclature of Special Ways and Means Advances granted to the State Governments was
changed as Special Drawing Facility from June 23, 2014.

The Reserve Bank issued certificates of authorisation to three non-bank entities, namely, (i) BTI
Payments Private Limited, Bangalore, (ii) Srei Infrastructure Finance Limited, Kolkata, (iii)
Riddi Siddhi Bullions Limited, Mumbai, for setting up and operating white label ATMs (WLAs)
in India . Earlier, four entities were authorised to operate as WLAs, namely, Tata
Communications Payment Solutions Limited, Mumbai; Prizm Payment Services Pvt. Ltd.,
Mumbai; Muthoot Finance Limited, Kochi and Vakrangee Limited, Mumbai.

The Reserve Bank granted “in-principle” approval to two applicants, namely, IDFC Limited and
Bandhan Financial Services Private Limited, to set up banks under the ‘Guidelines on Licensing
of New Banks in the Private Sector’.

A separate category of non-banking finance companies (NBFCs) was created, namely, Non-
Operative Financial Holding Company (NOFHC). NOFHC would be registered as a non-
deposit taking non-banking financial company (NBFC) with the Department of Non-Banking

Supervision (DNBS) the regulatory and supervisory framework of NOFHC including prudential
norms and submission of returns would be governed by the instructions issued by Department of
Banking Operations and Development (DBOD).

The Reserve Bank advised banks to accept e-Aadhaar downloaded from the website of the
Unique Identification Authority of India (UIDAI) as an officially valid document subject to
certain conditions. Banks were also advised to note that physical Aadhaar card/letter issued by
UIDAI containing details of name, address and Aadhaar number received through post and e-
KYC process, would continue to be accepted as an ‘Officially Valid Document’.

The Government has replaced Planning Commission with a new institution named NITI Aayog
(National Institution for Transforming India). The institution will serve as ‘Think Tank’ of the
Government-a directional and policy dynamo. NITI Aayog will provide Governments at the
central and state levels with relevant strategic and technical advice across the spectrum of key
elements of policy, this includes matters of national and international import on the economic
front, dissemination of best practices from within the country as well as from other nations, the
infusion of new policy ideas and specific issue-based support.

The government has announced the launch of 'Sukanya Samriddhi Account' a new small
savings instrument for the girl child. The instrument will cater to the requirements of education
and marriage of the girl child. The account can be opened and operated by the natural or legal
guardian of a girl child till she attains the age of 10 years, after which she can herself operate it.
The deposits in the account may be made by the guardian or any other person or authority. An
account can be opened with Rs.1,000. It will require a minimum deposit of Rs.1,000 and a
maximum deposit of Rs.1.5 lakh in a financial year. Interest at the rate, to be notified by the
Government, compounded yearly shall be credited to the account till the account completes
fourteen years.

RBI has released guidelines for setting up Trade Receivables System (TReDS), which will
facilitate financing of trade receivables of Micro, Small and Medium Enterprises (MSMEs) from
large corporates and other buyers, including government departments and PSUs through multiple

The limit of Pre-paid Payment Instruments (PPI) that can be issued has now been enhanced from
Rs.50,000 to Rs.1 lakh. The balance in the PPI should not exceed Rs.1 lakh at any point of time.
Besides, the maximum validity of gift cards has been enhanced from one year to three years.

Borrowers unwilling to repay bank loans despite the ability to do so, run the risk of being
classified as non-cooperative. Aimed at clamping down on errant borrowers, this move of RBI
will ensure that companies classified as non-co-operative will not get fresh funds. A non-co-
operative borrower is one who deliberately stonewalls legitimate efforts of lenders to recover
their dues. On an additional note, RBI has also prescribed norms for classifying / declassifying a
borrower as non-cooperative and reporting information on such defaulters to the 'Central
Repository of Information on Large Credits' (CRILC).

RBI has issued new regulations to align NBFCs closer to bank rules. Companies with an asset
size of more than Rs.500 crore, and all the deposit taking NBFCs will have to raise minimum
Tier-1 capital to 8.5% by the end of March 2016 and 10% by the end of March 2017. RBI has
also revised the threshold to Rs.500 crore from Rs.100 crore for defining systemic significance
for NBFCs. Further, RBI has tightened the regulatory framework for NBFCs. Like banks, they
will be subject to 90-day overdue norms for identification of bad loans; will be required to make
higher provisioning for non-standard assets; and will need to have 'fit and proper criteria' for

In order to strengthen the financial sector, enhance the adoption of technology, and with an
increase in complexities of services offered by NBFCs, RBI has made it mandatory for all
NBFCs to attain a minimum Net Owned Fund (NOF) of Rs.2 crore by the end of March 2017.

RBI has eased the norms for parking ECBs. Now, such loans can be kept as Fixed Deposits
(FDs) for a period of six months for use at a later stage.

The Finance Ministry has notified a liberalised Depository Receipts Scheme, which, w.e.f. 15 th
December 2014, will help unlisted companies to mobilise money abroad and enable private
equity holders to encash their holdings.

RBI has cut the Export Credit Refinance (ECR) facility from 32% of banks' eligible export credit
to 15%, w.e.f. October 10, 2014.

Investments in trading book are held for generating profits on the short term differences in prices
/ yields. Held for trading (HFT) and Available for sale (AFS) category constitute trading book.

RBI has issued provisional license for opening new private sector bank to IDFC & Bandhan
Financial Services Ltd (MFI) out of 25 applicants ( Actual 27- Two withdrawn, 1) Tata 2)
Videocon). Mr. Chandra Shekhar Ghosh is CMD of Bandhan Finacial Sevices, Kolkata which is
largest MFI in India set up in 2001.

New Private Sector Banks- RBI Guidelines-

1) Minimum Capital required Rs.500 crores
2) Bank must maintain minimum CAR of 13% of its risk weight assets for at least 3 years.
3) New Banks must get listed with in 3 years of commencement of business.
4) At leat 25% new bank’s branches must be opened in unbanked rural centre.
5) At least 50% of Directors of non operative holding company must be independent.
6) Promoters through holding company must hold 40% share (Minimum Rs.200 crore) in
new bank for 5 years. Further, Promoters stake must be cut to 20% in 10 years and 15%
in 12 years.
7) An Individual belonging to the Promoter Group along with his relatives can hold up to
10% of the total voting equity share of holding company.
8) Aggregate NRI (FDI,NRI,FII) holding in new bank will be capped at 49% for 5 years
from the date of licensing.

Deposit Insurance –

DICGC has to settle all the claims with in 2 months from the date of receipt of claim from the
Liquidator. Maximum Rs.1 lac deposit is covered including principal & interest through DICGC.
Deposits in different branches are totaled. All deposits that you hold in your name in the same
bank are clubbed together to apply maximum cover.
For deposit with different banks or in difference capacities, Rs.1 lac cover applied separately for
each of them. Deposit insurance is mandatory and no bank can withdraw from it. If bank fails to
pay the premium for 3 consecutive period, the DICGC can withdraw its cover.

RBI has increased investment limit in Inflation Indexed Bond for Individuals from Rs.5 lacs to
10 lacs and also for HUF, Trusts, Education & similar Institutions which are pro-profit in nature
has been increased from Rs.5 lacs to 25 lacs p. a.


1. Constitution of the Fund

1.1 After the completion of the initial five years, it has now been decided to merge both the
Financial Inclusion Fund & Financial Inclusion Technology Fund into a single Fund viz.
Financial Inclusion Fund (FIF).

1.2 The overall corpus of the new FIF will be Rs. 2000 crore. Contribution to FIF would be from
the “interest differential” in excess of 0.5% on RIDF and STCRC deposits on account of shortfall
in priority sector lending (as notified by RBI from time to time) kept with NABARD by banks.

1.3 All the assets and liabilities of the erstwhile FITF as well as prior commitments from FITF
for projects already sanctioned, which falls within the scope of the erstwhile funds, will be
transferred to/reimbursed from FIF.

1.4 The Fund shall be in operation for another three years or till such period as may be decided
by RBI and Government of India in consultation with other stake holders.

2. Objective of FIF-

The objectives of the FIF shall be to support “developmental and promotional activities”
including creating of FI infrastructure across the country, capacity building of stakeholders,
creation of awareness to address demand side issues, enhanced investment in Green Information
and Communication Technology (ICT) solution, research and transfer of technology, increased
technological absorption capacity of financial service providers/users with a view to securing
greater financial inclusion. The fund shall not be utilized for normal business/banking activities.

Base Rate Base Rate = Cost of Deposits + Negative Carry on CRR and SLR +
Unallocatable Overhead Cost + Average Return on Net Worth.
CRR The minimum daily maintenance of CRR reduced from 99 per cent of
the requirement to 95 per cent effective from the fortnight beginning
September 21, 2013
CRAR- RRBs All regional rural banks (RRBs) advised to achieve and maintain a
minimum capital to risk weighted assets ratio (CRAR) of 9 per cent on
an ongoing basis with effect from March 31, 2014.
Investing in overseas The limit of an Indian company investing in overseas unincorporated
entities in the energy and natural resources sectors, under the automatic
route, reduced from 400 per cent to 100 per cent of its net worth as on
the date of the last audited balance sheet.
FDI-ARC The ceiling for foreign direct investment (FDI) in asset reconstruction
companies (ARCs) increased from 49 per cent to 74 per cent subject to
the condition that, no sponsor should hold more than 50 per cent of the
shareholding in an ARC either by way of FDI or by routing through a
foreign institutional investor (FII).
CRE-RH A separate sub-sector called ‘commercial real estate - residential
housing’ (CRE-RH) carved out from the commercial real estate (CRE)
sector. CRE-RH to consist of loans to builders/developers for residential
housing projects (except for captive consumption) under CRE segment.
The CRE-RH segment to attract a lower risk weight of 75 per cent and
lower standard asset provisioning of 0.75 per cent as against 100 per
cent and 1.00 per cent, respectively for the CRE segment
JL Banks advised that while granting advance against the security of
specially minted gold coins sold by them, they should ensure that the
weight of the coin(s) does not exceed 50 grams per customer.
Pledge Loans The limit of loans to farmers against pledge/hypothecation of
agricultural produce (including warehouse receipts) for a period not
exceeding 12 months increased from Rs.25 lakh to Rs.50 lakh both
under direct and indirect agriculture.The limit of loans to dealers/sellers
of fertilisers, pesticides, seeds, cattle feed, poultry feed, agricultural
implements and other inputs raised to Rs.5 crore per borrower from Rs.1
Bank Rate All penal interest rates on shortfall in reserve requirements, which are
specifically linked to the bank rate.
Plastic Notes Plastic notes of Rs.10 denomination proposed to be issued by RBI in
2014 in 5 cities named Kochi, Mysore, Jaipur, Shimla & Bubaneshwar.
Life span of these plastic notes will be 5 years.
Term Deposits Banks can pay term deposit interest at less than quarterly intervals.
IRF RBI has launched Interest Rate Futures contract to help investors hedge
interest rate risks while investing in Govt. Bonds.
KYC Data RBI directed to banks that they would be required to update KYC data
only one time in 2 years for high risk entities and once in 10 years for
low risk clients. Medium risk individuals & entities at least every 8
Cash Management CMBs are short term instruments that enables the Govt. to meet short
Bills term mismatches.
Infrastructure RBI brings three more sectors under Infrastructure. Telecom &
Telecommunication Services, Slurry Pipelines & Capital Dredging.
Acceptance of Cash RBI clarified that there is no restrictions regarding acceptance of cash
deposits from customers provided PAN/FORM NO.60/61 is obtained in
case of deposit above Rs.50,000/- and CTR Report filed with FIU-IND
for transactions above Rs.10 lacs.
Mobile Banking The Reserve Bank has advised that for mobile banking transactions, the
cap of Rs. 50,000 per customer per day for both funds transfer and
transactions involving purchase of goods/services has now been
removed. Banks should, however, place per transaction limits based on
their own risk perception with their Board’s approval.
NEFT - Penal Interest The Reserve Bank has reiterated that banks should strictly adhere to the
for Delayed extant instructions of paying penal interest at the stipulated rate to the
Credit/Refunds customers suo-moto, without waiting for a claim from the customers
(under the extant guidelines, banks are required to pay penal interest at
the current RBI LAF Repo Rate plus two per cent for the period of
delay/till the date of refund, as the case may be, to the affected
MFIs allowed to raise It has been decided by RBI to permit micro finance institutions (MFIs)
ECBs to raise ECB up to USD 10 million or equivalent during a financial year
for permitted end-uses, under the automatic route.
Marginal Standing Banks permitted to avail themselves of funds from the Reserve Bank on
Facility (MSF) overnight basis under Marginal Standing Facility (MSF), against their
excess SLR holdings.
Validity of Cheques The Reserve Bank has, in public interest and in the interest of banking
policy, reduced the period within which cheques/ drafts/pay
orders/banker’s cheques are presented for payment, from six months to
three months from the date of such instrument.
SB Interest Rate Savings bank deposit interest rate for resident Indians deregulated from
October 25, 2011. Banks given the freedom to determine their savings
bank deposit interest rate.
Individual Residents Individual residents in India permitted to include nonresident close
relative(s) as joint holder(s) in their resident bank accounts, as also, in
exporter earners’ foreign currency (EEFC) and residents’ foreign
currency (RFC) accounts on ‘former or survivor’ basis. Non-resident
Indian close relative(s), however, would not eligible to operate the
account during the life time of the resident account holder.

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

foreign currency (non-resident) account (banks) scheme {FCNR(B)}
accounts with their resident close relative(s) on ‘former or survivor’
basis. The resident close relative would be eligible to operate the
account as power of attorney holder during the life time of the NRI/PIO
account holder.

Resident individuals Resident individuals permitted to make a rupee gift to a NRI/PIO who is
a close relative by way of crossed cheque/electronic transfer to the non-
resident (ordinary) rupee account (NRO) of the NRI/PIO.
• A person resident in India permitted to give to a person resident
outside India, by way of gift, any security/shares/debentures of up to
USD 50,000 in value per financial year without the Reserve Bank's

The Reserve Bank reiterated its stance to banks that all demand drafts,
mail transfers, telegraphic transfers and travellers cheques for Rs,50,000
and above should be issued by banks only by debit to the purchaser's
account or against cheques or other instruments tendered by the
purchaser and not against cash payment.

NBFC All deposit taking NBFCs advised to maintain a minimum capital ratio
consisting of Tier I and Tier II capital, of not less than 15 per cent of
their aggregate risk weighted assets on balance sheet and risk adjusted
value of off-balance sheet items from March 31, 2012.

Advances against Loans/ advances granted to individuals against the security of shares,
Shares debentures and PSU bonds should not exceed Rs.10 lakh and Rs.20 lakh,
if the securities are held in physical form and dematerialized form
respectively. The maximum amount of finance that can be granted to an
individual for subscribing to IPOs is Rs.10 lakh. However, the bank
should not provide finance to companies for their investment in IPOs of
other companies. Banks can grant advances to employees for purchasing
shares of their own companies under Employees Stock Option Plan
(ESOP) to the extent of 90% of purchase price of shares or Rs.20 lakh
whichever is lower.

A uniform margin of 50% has been stipulated for all advances against
shares/ /financing of IPOs/issue of guarantees for capital market
operations. Within this 50 percent margin, a minimum cash margin of 25
percent should be maintained in respect of guarantees issued by banks
for capital market operations.

Proprietary Concerns The following documents included in the indicative list of required
documents for opening accounts of proprietary concerns (i) complete
income tax return (not just the acknowledgement) in the name of the
sole proprietor where the firm's income is reflected, duly
authenticated/acknowledged by the income tax authorities; and (ii)
utility bills, such as, electricity, water, and landline telephone bills in the
name of the proprietary concern.

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

With effect from October 25, 2011, saving bank deposit interest rate stands deregulated.
Accordingly, banks are free to determine their savings bank deposit interest rate, subject to the
following two conditions:

(a) First, each bank will have to offer a uniform interest rate on savings bank deposits up to Rs.1
lakh, irrespective of the amount in the account within this limit.

(b) Second, for savings bank deposits over Rs.1 lakh, a bank may provide differential rates of
interest, if it so chooses, subject to the condition that banks will not discriminate in the matter of
interest paid on such deposits, between one deposit and another of similar amount, accepted on the
same date, at any of its offices.

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

Differential rates of interest can be paid on single term deposits of Rs.15 lakh and above and not on
the aggregate of individual deposits where the total exceeds Rs.15 lakh.

The profit making banks may make donations during a financial year, aggregating up to one
percent of the published profit of the bank for the previous year.
Loss making banks can make donations up to Rs.5 lakh only in a financial year.
Banks can sanction bridge loans to companies for a period not exceeding one year against the
expected equity flows/ issues as also the expected proceeds of non-convertible Debentures,
External Commercial Borrowings, Global Depository Receipts and/ or funds in the nature of
Foreign Direct Investments, provided the bank is satisfied that the borrowing company has made
firm arrangements for raising the aforesaid resources/ funds. Bridge loans extended by a bank will
be included within the ceiling of 40% of net worth prescribed for banks’ aggregate exposure to the
capital market.
With effect from April 1, 2002 banks have been charging interest on loans and advances at monthly
rests except in the case of agricultural advances (including short term loans and other allied
activities) where the existing practice continues.

Banks are not permitted to levy foreclosure charges/pre-payment penalties on home loans on
floating interest rate basis, with effect from June 5, 2012.

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

Regulations, 2000, as amended from time to time, now eligible to transfer funds from non-resident
ordinary (NRO) account to non-resident external (NRE) account within the overall ceiling of USD
one million per financial year subject to payment of applicable tax.

Agency banks advised to compensate an investor in relief/savings bonds, for the financial loss due
to late receipt/delayed credit of interest warrants/maturity value, at a fixed rate of 8 per cent p. a.

The security features in banknotes are as under: Security Thread, Intaglio Printing, See through
register, Optically Variable Ink (OVI), Fluorescence, Latent Image, Micro letterings.

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

In the case of joint accounts and partnership firms, all the joint depositors and partners should join
in granting the Power of Attorney. For Joint Hindu Families, the ‘Karta’ or ‘Ejaman’ should
execute the Power of Attorney. Powers of Attorney can be granted by Limited Companies if the
Articles of Association permits it.

Trustees cannot delegate their powers by means of a Power of Attorney unless they have clear
authority under the Trust Deed to do so. If delegation of power is permitted under the Trust Deed,
all the trustees should join in executing the Power of Attorney.

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

Applicability of simplified scoring chart for loans to Micro and Small Enterprises up to 1.00 crore
is applicable for new borrowers and renewal of the existing limit for the financial year / rating year

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

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

Process note along with LRF are submitted to the reviewing authority immediately on sanction of
the facility in respect of sanctions of above 5.00 Lakhs (other than Staff Loans, JL, LD and ODD).

If the customer has suffered any financial loss incidental to return of a cheque or failure of direct
debit instructions due to insufficiency of balance on account of the unauthorized / erroneous debit,
the Bank will compensate the customer upto 10% of the amount of the returned cheque or the
amount of debit instruction, both however subject to monetary ceiling of 1 lakh (cumulative if
more than one cheque / debit instruction are involved) only if the amount of the cheque / debit
instructions would have been covered by the balance in the account but for unauthorized /
erroneous debit.

Duplicate draft will be issued within a fortnight from the receipt of such request from the
purchaser thereof. For delay beyond the above stipulated period, interest at the rate applicable
for Fixed Deposit of corresponding period will be paid as compensation to the customer for such

Bank would return to the borrowers all the securities/ documents/ title deeds to mortgaged property
within 15 days of repayment of all dues agreed to or contracted.

It is mandatory for bank to reimburse the customer, the amount wrongfully debited on account of
failed ATM within a maximum period of 7 working days from the receipt of the complaint. For
any failure to re-credit the customer’s account within 7 days from the date of receipt of the
complaint, bank shall pay compensation of 100/- per day to the aggrieved customer.

Pensioners should get their pension, hike in Dearness Relief/ Allowance etc., announced by Govt.
in succeeding month’s pension payment itself. If there is delay in disbursement of pension /
pension arrears aggrieved pensioners are to be compensated for the delayed period beyond the due
date, at a fixed interest rate of 8% per annum on such delays.

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

The currency notes, which are found to be deliberately cut, torn, altered or tampered with, if
presented for payment of exchange value should be rejected.

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

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

Provision for Standard Asset-

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

Direct Advances to Agricultural and Small & Micro Enterprises (SMEs) 0.25%
Advances to Commercial Real Estate sector (CRE) 1.00%
Advances to Commercial Real Estate-Residential Housing Sector (CRE-RH) 0.75%
Restructured accounts classified as non-performing advances, when upgraded to 5.00%
Standard category, in the first year from the date of upgradation.
Housing loans at teaser rates- 2.00%
(To be reverted to 0.40% after 1 year from the date on which the rates are reset at
higher rates if the accounts remain ‘standard’.)
Restructured accounts classified as standard advances in the first two years from the 5.00%
date of restructuring. In cases of moratorium on payment of interest/principal after
restructuring, for the period covering moratorium and two years thereafter.
All other loans and advances not included above. 0.40%

Imp. BC Circulars-2011-
Cir No. Imp. Contents

355-2011-BC Syndicate Bank has entered into strategic tie up arrangement with one among
the leading stock broking players in India M/s Asit C. Mehta Investment
Interrmediates Ltd (ACMIIL) for offering Synd e-Trade - Online Share
Trading Facility (3 in 1 Account) to SyndicateBank customers who invest or
trade in securities.

313-2011-BC The RBI, on being satisfied that in public interest and in the interest of the
Banking Policy, has decided that it is necessary to reduce the period within
which cheques/drafts/pay orders/banker’s cheques are presented for payment
from six months to three months. Accordingly, RBI has, vide their Circular
No. DBOD.AML.BC No.47/14.01.001/2011-12 dated November 4, 2011, in
exercise of the powers conferred by Section 35A of the Banking Regulation
Act, 1949, directed that with effect from 01.04.2012, Banks should not make
payment of cheques/drafts/pay orders/banker’s cheques bearing that date or
any subsequent date, if they are presented beyond the period of three months
from the date of such instrument.

147--2011-BC It has been decided to raise the minimum amount to be accepted from Rs.100/-
to Rs.1000/- under fresh VCCs as well as renewal of existing / Matured VCCs
w.e.f. 01.06.2011. SB Int rate wef 03.05.2011 is enhanced to 4% from 3.50%.

161-2011-BC Branches / offices shall continue to levy additional interest of 1% over the
applicable rate for the respective category on ad-hoc limits (other than export

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

Repayment period: maximum period of 7 years.
T h e lo a n s a nc t i o n e d u n de r t h e s c h e m e s h a ll b e r e pa y a bl e w i t h in


“SyndMSE”- Renewal once in two years.

Micro and Small enterprises sector will include credit to:

1. Manufacturing Enterprises :

(a) Micro (manufacturing) Enterprises:

Enterprises engaged in the manufacture/production, processing or
preservation of goods and whose investment in plant and machinery
(original cost excluding land and building) does not exceed 25 lakh,
irrespective of the location of the unit.
(b) Small (manufacturing) Enterprises:
Enterprises engaged in the manufacture/production, processing or
preservation of goods and whose investment in plant and machinery
(original cost excluding land and building ) is more than 25 lakh but does
not exceed 5 crore, irrespective of the location of the unit.

2 Service Enterprises
(a) Micro (service) Enterprises:
Enterprises engaged in providing/rendering of services and whose investment in
equipment (original cost excluding land and building and furniture, fittings and other
items not directly related to the service rendered) does not exceed 10 lakh, irrespective of
the location of the unit.
(b) Small (service) Enterprises:
Enterprises engaged in providing/rendering of services and whose
investment in equipment
[original cost excluding land and building and furniture, fittings and other
items not directly related
to the service rendered ) is more than 10 lakh but does not exceed 2 crore,
irrespective of the location of the unit.

Imp. BC Circulars-2012-
BC Cir No. Important contents

003/2012/BC As per RBI guidelines, no interest is payable in case of NRE Term Deposits of
less than one year. (Para 2.2A (ii) of RBI Master Circular on Domestic, NRO
and NRE Deposits - minimum tenor of NRE Deposits is one year).

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

Term deposits, no interest is payable where the period for which the deposit
held with the Bank is less than one year.

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

Savings amongst landless villagers and to meet their genuine credit
requirements of consumption purposes on a need based basis by extending
Savings cum-OD facility.
After opening the Savings-cum-OD account, a limit of 10,000/- has to be
created for 3 years at Base Rate of the Bank.

008/2012/BC The Reserve Bank of India has set up a Working Group on Information
Security, Electronic Banking, Technology, Risk Management and Cyber
Frauds (Chairman: Shri G. Gopalakrishna, Executive Director, RBI).

009/2012/BC All sanctions of above 1.00 crore is to be vetted by Law Officer of Regional
Office in centers where Regional Office is located. In other centers, vetting has
to be done by Panel Lawyer, who should be a reasonably Senior Advocate and
not by the same panel Lawyer, who has given opinion on chain of title and
011/2012/BC Additional interest of 0.50% is payable to Resident Indian Senior Citizens on
Domestic Term Deposits of less than Rs.5 crore and the maturity tenor of one
year and above only.

Employees / eligible Ex-employees are eligible for an additional interest of 1%
over the above rates irrespective of the amount and tenor of deposit.

Eligible ex-employees, who are Senior Citizens and are eligible for the above
additional interest are also eligible for an additional interest of 0.50% payable
to Resident Indian Senior Citizens on domestic term deposits of less than Rs.5
crore & maturity tenor of one year and above only.


OF NEFT TRANSACTIONS. Branches are required to pay penal interest at
the current RBI Repo Rate plus two percent for the period of delay / till the
date of refund as the case may be to the affected customers without waiting for
a claim from the customers.

013/2012/BC Bank has now entered into MOU with another rating agency, viz, Brickwork
Ratings India Pvt Ltd, for rating our Micro and Small Enterprises borrowers.
Brickwork Ratings India Pvt Ltd, is recognized by National Small Industries
Corporation (NSIC) besides SEBI.

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

particulars and address may be accepted as documentary proof for both
identification as well as address. Further, a copy of the visa of non-residents,
duly stamped by Indian Immigration authorities may also be obtained and kept
on record.

019/2012/BC DRI Scheme-

Limit of the loan per borrower is increased from 6500/ to 15000/- for general
purpose and from 5000/- to 20000/- for housing purpose.
Annual family income is increased from 6400/- in rural areas to 18000/- and
from Rs.
7200/- in semi-urban & urban areas to Rs.24000/- .
031/2012/BC Prepayment penalty charges will not be levied on Retail Loans (such as
SyndNivas, SyndSaral, SyndSenior, SyndVahan, SyndMSE,SyndVyapar
Improved and any other Synd Products) when they are closed other than by
way of TAKEOVER. A penalty of 2% on outstanding balance shall be levied
if these loans are taken over by other Banks/FIs.
034/2012/BC Branches are permitted to accept NRE Term Deposits up to a maximum period
of 10 years instead of existing period of 5 years w.e.f. 07.02.2012.
045/2012/BC The Financial Action Task Force (FATF) is the global standard setting body
for anti-money laundering and combating the financing of terrorism


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

CASA Product codes 221, 223, 224 & 225.
□ Amount of insurance Cover: 25,000/-
□ Entry Age: 18-64 years.
□ Type of Cover: Life Cover (Term) covering Accidental & Natural death and
Terminal Illness benefit.
Premium Amount: Presently 32.00 p.a. including service tax, for a cover of
□ (Annual Premium Rate 1.16 per 1,000/- sum assured, plus service tax as
applicable on risk premium.)
075-2012-BC Need based credit against the indebtedness of the farmer from money lender
with a maximum of 1.00 lac per farmer with Nil margin.

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

(i) Articles entrusted to safe custody:
The facility of nomination is available only in the case of individual depositors
and not in respect of persons jointly depositing the articles for safe custody.
(ii) Safe Deposit Lockers:
(a) Individuals (including non-resident Indians) who is sole hirer of a locker.
(b) Two or more individuals (including non-resident Indians) jointly hiring a

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

interest to be paid by Bank on the TDR amount of Margin money subsidy and
no interest will be charged by Banks on loan to the corresponding amount of
The first installment of bank loan should be at least equal if not more than the
TDR / Margin Money subsidy amount.
121-2012-BC Inclusion of following documents in the indicative list of required documents
for opening accounts of proprietary concern:
1) The complete Income Tax Return (not just the acknowledgement) in the
name of the sole proprietor where the firm’s income is reflected duly
authenticated / acknowledged by the Income Tax Authorities.
2) Utility bills such as electricity, water and landline telephone bills in the
name of the proprietary concern.
140-2012-BC NRI shall be eligible to transfer funds from NRO account to NRE account
within the overall ceiling of USD one million per financial year subject to
payment of tax, as applicable .

166-2012-BC In addition to the existing four approved external rating agencies, viz.,
CRISIL, ICRA, CARE and FITCH, Reserve Bank of India has now accredited
BRICKWORK Ratings India Private Limited (Brickwork) for the purpose of
risk weighting the banks’ claims for capital adequacy purposes, taking the total
number of approved rating agencies to five.
177-2012-BC It has been decided to waive the service charges on NEFT outward
transactions up to 1.00 lakh with immediate effect. Maximum Rs.25/-
exclusive of service tax.

178-2012-BC RBI, in order to protect the customer interest, have advised All Scheduled
Commercial Banks to display on their respective websites the names and
addresses of all those accounts inoperative/inactive/unclaimed for 10 years and
above w.e.f. 30th June 2012.

185-2012-BC Revised the rate of interest on fresh advances of 25 lakhs and above against
Term Deposits as under.
LD : 1.00% above the deposit rate.
ODD: 1.50% above the deposit rate.
The revised rates of interest as above are not applicable to the advances
against third party deposits.
The interest rate on advances of less than 25 lakhs against Term Deposits
remains unchanged, i.e, 2% above deposit rate.

189-2012-BC RBI has decided to permit Non-Bank Entities incorporated in India under
Companies Act 1956, to set up, own and operate ATMs in India. Such ATMs
will be in the nature of White Label ATMs (WLA) and would provide ATM
services to customers of all Banks based on the card issued by the banks.
Maximum Loan of 5.00 lac/ATM repayable within maximum period of 60
months with maximum moratorium of 6 months@ 25% margin.

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

aggregate credit limits below 150 crore from more than one bank, where
further enhancement would take the aggregate limits to 150 crore or more,
should be Considered jointly by the financing banks concerned and the bank,
which takes up the largest share of the limits, shall be deemed to be the leader
of the formalized JLA. The JLA will have Common Documentation and
Common Asset Classification.

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

multiple Customer IDs.

290-2012-BC S B accounts are exempted from cash handling charges as per the existing
guidelines and cash handling charges applicable to Current/Overdraft a/c .

293-2012-BC “Shell Bank”- Banks should refuse to enter into a correspondent relationship
with a “Shell Bank” (i.e. a bank which is incorporated in a country where it
has no physical presence and is unaffiliated to any regulated financial group).
Shell Banks are not permitted to operate in India.

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

days of arriving at a conclusion that any transaction, whether cash or non-cash,
or a series of transactions integrally connected are of suspicious nature.

Resident Individuals (singly / jointly), employed permanently in Multinational
Companies/Corporations (MNC) Blue Chip Companies, reputed Private
Organizations and Government/Semi-Government Undertakings are eligible to
open this account. The savings bank account opened shall have the ZERO
BALANCE facility at any given point of time. There shall be a minimum of 25
employees per organization to be eligible for drawing their salary through
Synd Navaratna savings bank account. Regional Managers may use their
discretion and relax the number of employees to 10 in deserving cases.
Free Funds transfer facility through RTGS/NEFT up to Rs.1.00 lakh.
At par Demand drafts/pay orders (six instances in a year up to ceiling of salary
credited per instance).
Temporary overdraft facility for a period of 15 days to meet any urgent
requirements subject to payment of interest. Amount restricted to the extent of
one month’s net salary (exclusive of allowances of a temporary nature). The
overdraft facility may be made available after six months continuous salary
credit by the employer.

301-2012-BC SKCC- The limit under SKCC is valid for 5 years and it is subject to annual
RuPay Kisan Cards will be issued to the existing as well as new SKCC
Crop Insurance is mandatory. Personal Accident Insurance Scheme (PAIS)
shall be made available to all eligible farmers on compulsory basis.

305-2012-BC Prior permission of RBI is not required to open a bank account in India of a
foreign student – as a foreign student studying in India would be considered a
“Person Resident in India”.

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

Funds In India (AMFI. AMFI registration number (ARN) 36031 is valid from
29.06.2012 to 28.06.2015. Under sub-broker code, branch BIC is to be
328-2012-BC Password structure and Management in our Bank
Maximum Password Age – 30 Days
Minimum Password Length – 8 Characters
Account Lockout – 3 invalid attempts
338-2012-BC In case of death of an employee as a result of or during Bank robbery or
attacks by terrorists, including left-wing extremism on Bank employees, the
family of deceased will be given compensation by the Bank as follows:
In case of death of Officers : 20 Lacs
In case of death of Clerical/Sub staff : 10 Lacs

In respect of the persons other than the Bank employee who may get killed as
a consequence of or during robberies and/or attack of terrorists, the Bank will
pay a lumpsum compensation of 3 Lacs to the family of the deceased.

In case of Bank employees / customers / members of public who actively
resists Bank robberies and terrorist attacks on Banks, the Bank may consider a
cash reward not exceeding 2 Lacs.

Circular No.114- The limit of loans to farmers against pledge/hypothecation of agricultural

2013-BC-PSCD-12 produce (including warehouse receipts) for a period not exceeding 12 months
stands increased from Rs.25 lakh to Rs.50 lakh both under direct and indirect

Imp. Circulars-2013

Cir. No. Particulars

Circular No. 007- As per extant RBI guidelines, Savings / Current Account shall be treated as
2013-BC Inoperative / Dormant if there are no transactions in the account for over a period
of 2 years. (only transaction induced at the instance of customers and third party
shall be considered. Service Charges levied by the Bank or interest credited by
the Bank shall not be considered).

2013-BC AGRICULTURAL PURPOSE. “Direct Agricultural Advance”.
Maximum loan amount permitted for purchase of land is 10.00 lakh. No margin
is stipulated for loans up to 1,00,000/- For loans above 1,00,000/- a minimum
margin at 10% of the project cost shall be met by the borrower. Loan is to be
repaid in 7-10 years in half yearly / yearly installments including a maximum
moratorium period of 24 months.

Circular No.020- CREDIT GUARANTEE SCHEME-Gist of the Modifications is as under:

1. The “third party guarantee" is more clearly defined under the scheme, which
shall not include guarantee of Sole-Proprietor, Partners, Trustees, Karta,
Coparceners and Promoter Directors.

2. In the place of existing Guarantee Fee and Annual Service Fee, a Composite
all in Annual Guarantee fee (AGF) payable.

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

Credit Facility Women, Micro Enterprises and units Other

in North East Region (incl. Sikkim)
Upto 5 lakh 0.75 1.00
Above 5 lakh and up to 0.85 1.00
100 lakh

3. The time limit for lodging claim is increased to 2 years from the date of NPA
or within 2 years of expiry of lock in period whichever is later.
4. The initiation of legal proceedings as a precondition for invoking of
guarantee is waived for credit facilities up to 50,000.
5. The Second installment of 25% of the guaranteed amount will be paid on
conclusion of recovery proceedings or after three years of obtention of decree of
recovery, whichever is earlier. The Trust shall pay 75 per cent of the guaranteed
amount on preferring of eligible claim by the lending institution, within 30 days,
subject to the claim being otherwise found in order and complete in all respects
Circular No.021- HL-MAXIMUM PERIOD OF REPAYMENT (TENOR)- 30 years subject to 75
2013-BC years of age of the borrower inclusive of moratorium & total repayment period
NHB has revised the loan limit ceiling from the current limit of 5.00 lacs to
10.00 lacs.
Circular No. 049- SYNDKISAN TATKAL- Minimum 1000/- or 50% of SKCC limit or 25% of
2013-BC annual income subject to a maximum of 50000/-. Repayable within 5 years in
half yearly / yearly instalments based on income generation to the farmer. SKCC
holders having satisfactory track record of at least two years are eligible.


*Section 13, Sub Section 3(A) deals with borrowers right of objections and the
reply to be given by the Bank within 7 days. As per the amendment, the reply by
the Bank is to be given within 15 days, thus enhancing the time limit for reply by
the Authorized Officer.
*Section 13(9) earlier provided that in the case of financing by more than one
secured creditor or joint financing, rights under the Act could be exercised only
if secured creditors representing 75% in value of the amount outstanding as on
record date agree for such action. This has been reduced to 60% in value of the
amount outstanding as on record date.
*Bank cannot hold attached property, except such as is required for its own use,
for any period exceeding seven years.


2013-BC The scheme shall be applicable to all lending arrangements, by a single
borrower, with aggregate credit limits (both fund based and non-fund based) of
150 crore and above, involving more than one Public Sector Bank. The scheme
is also applicable to all non-investment grade borrowers (External Credit Rating
below BBB or equivalent), irrespective of the amount of exposure.
To keep JLA size manageable, the minimum share of a member must be 10% of
the aggregate working capital limits for aggregate working capital exposures (FB
& NFB) under 1,000 crore. For working capital exposures of 1,000 crore and
above, the minimum participation in the working capital JLA should be at least
100 crore.

Circular No. 104- Authorized Branches are permitted to open NRO accounts of individual/s of
2013-BC Bangladesh nationality without the approval of the Reserve Bank of India.
For opening of NRO accounts by entities of Bangladesh ownership, individuals/
entities of Pakistan Nationality/Ownership branches shall continue to obtain
prior approval of Reserve Bank of India.

Circular No.114- Agriculture:

2013-BC (i) The limit of loans to farmers against pledge/hypothecation of agricultural
produce (including Warehouse Receipts) for a period not exceeding 12 months
stands increased from 25 lakh to 50 lakh both under direct and indirect

NHB has communicated vide their letter No. NHB/CRGFTLIH/6741/2013 dated
April 19, 2013 that RBI has accorded Zero’ Risk Weight and ‘Nil’ Provisioning
for the guaranteed portion of eligible housing loans by CRGFTLIH
2013-BC 15G/15H-For non deduction of tax on Interest Paid to all category of depositors
except Limited Companies, Partnership Firms and Non Residents, where
credit/payment of interest exceeds 10,000/- p.a depositors can submit Form No
15G (in Triplicate) duly quoting PAN subject to interest paid/ credited at the
branch is below the basic exemption limit of 2,00,000/-. Senior Citizens of 60
years and above have to submit Form No.15H (in triplicate) duly quoting PAN
for non deduction of tax at source on interest on their deposits without any limit.
Failure to submit the copy of Form 15G/ 15H to the Income Tax Department
attracts penalty of 100/- per day u/s 272A (2)


2013-BC (MSE) –
Credit facilities up to 10.00 lac: Collateral security shall not be obtained and
eligible accounts shall be covered under CGMSE.
• Credit facilities above 10.00 lac up to 100.00 lac eligible for coverage under
CGMSE:Collateral security shall not be obtained and all accounts shall be
covered under CGMSE.
• Credit facilities above 10.00 lac under MSE not eligible for coverage under
CGMSE: Sanctioning authority shall explore the possibility of obtaining
Mortgage of Property /Other collateral security of appropriate value, in addition
to primary security, which shall cover at least 110% of the value of the limit.
Definition of Micro, Small and Medium Enterprises:
(a) Manufacturing Enterprises i.e. Enterprises engaged in the manufacture or
production, processing or preservation of goods as specified below:
(i) A Micro Enterprise is an enterprise where investment in Plant and Machinery
does not exceed 25 lakh;

(ii) A Small Enterprise is an enterprise where the investment in Plant and
Machinery is more than 25 lakh but does not exceed 5 crore; and
(iii) A Medium Enterprise is an enterprise where the investment in Plant and
Machinery is more than 5 crore but does not exceed 10 crore.
(b) Service Enterprises i.e. Enterprises engaged in providing or rendering of
Services and whose investment in Equipment (original cost excluding Land and
Building and Furniture, Fittings and other items not directly related to the
Service rendered or as may be notified under the MSMED Act, 2006) are
specified below.
(i) A Micro Enterprise is an enterprise where the investment in Equipment does
not exceed 10 lakh;
(ii) A Small Enterprise is an enterprise where the investment in Equipment is
more than 10 lakh but does not exceed 2 crore; and
(iii) A Medium Enterprise is an enterprise where the investment in Equipment is
more than 2 crore but does not exceed 5 crore.

Circular No.341- JAWAHARLAL NEHRU NATIONAL SOLAR MISSION -The subsidy is back
2013-BC ended with a lock in period of 3 years and the administration of subsidy and
refinance for the pre-approved models is done by NABARD.

Circular No.345- Bank has decided to enhance the Fee payable to the Credit Verification
2013-BC Agencies from 120/- presently to 750/- per case.
150 most backward districts eligible for Interest Subvention Scheme
All Women SHGs are eligible to avail credit up to 3 lakhs at 7% p.a. with
interest subvention. But, SHGs which have availed capital subsidy under SGSY
in their existing loans will not be eligible for benefit for their subsisting loan
under this scheme.

Circular No.006- Interest subvention of 2 % p.a. will be made available to Public Sector Banks
2014-BC (PSBs) and Private Sector SCB (in respect of loans given by their Rural and
Semi-urban Branches) on their own funds used for short-term crop loans up to
3,00,000/- per farmer provided the lending institutions make available short term
credit at the ground level at 7% per annum to farmers. This amount of interest
subvention will be calculated on the crop loan amount from the date of its
disbursement/drawal up to the date of actual repayment of the crop loan by the
farmer or up to the due date of the loan fixed by the Banks whichever is earlier,
subject to a maximum period of one year.
2. Besides, an additional interest subvention @3% will be available to the
prompt paying farmers from the date of disbursement of the crop loan up to the
actual date of repayment by farmers or up to the due date fixed by Bank for
repayment of Crop Loan, whichever is earlier, subject to a maximum period of
one year from the date of disbursement. This means the prompt paying farmers
would get short term crop loans @4% per annum during the year 2013-14.

138/2014/BC Key Elements of the KYC Policy
Following are four key elements of our KYC policy:
1. Customer Acceptance and Customer Severance Policy
2. Customer Identification Procedures;
3. Monitoring of Transactions;
4. Risk Management

207-2014-BC All Regional Offices are permitted to empanel the Credit Verification Agencies
for verifying, validating and certifying vital details of Credit Information on
individuals applying for loans as per extant guidelines.

215-2014-BC Benefits of additional interest to Bank’s staff members or retired staff members
is available only in the case of the staff member or retired staff members has an
account singly or jointly with family member where the staff member/retired
staff member is the Principal Account Holder.
Payment of additional interest of 1% to the spouse of the deceased staff member
is in vogue in our bank as per guidelines in Manual of Instructions, Vol. VII,
Para 7.2.26(c). This guideline to pay additional rate of interest of 1% to the
spouse of the deceased staff is as per RBI directives in which RBI has given the
discretion to individual banks.


Though, the product parameter permits renewal of deposits with maturity value
less than 1000/- and fresh deposits of less than 1000/-, Branches are permitted to
utilize the following options of 1 and 2 given below only in respect of
beneficiaries of Court cases and Government deposits.

1.Branches can renew the matured deposits or create new deposits with a
minimum amount of deposit 100/- and above in VCC product number 405,
where the maximum term is 120 months.
2. Branches can renew the matured deposits or create new deposits with a
minimum amount of deposit 100/- and above in VCC product number 411,
where the minimum term is above 120 months.

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

PMRY/KVIC-REGP/PMEGP and other Back-ended subsidy schemes, the
subsidy amount should be kept as FD (No Interest) under product code 413. In
such instances, interest to be charged on the loan amount shall be less by an
amount equal to the amount of subsidy kept as FD.

302-2014-BC All loan accounts of 5.00 crore and above where property is taken as security are
to be subjected to Legal Audit by getting the title deeds re-verified by another
empanelled advocate (other than the one who has given original opinion
confirming genuineness of the title deeds) once in 2 years at the time of annual
review of the loan accounts, till the loan is fully closed.

342-2014-BC COMPANIES ACT, 2013-The Act contains 470 Sections, divided into 29
Chapters with 7 Schedules.

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

ascertain whether the Company is empowered to borrow or give guarantee or
provide security.

Memorandum and Articles of Association and Board resolution as explained in

Section 180 (1) (a), 180 (2) and 180 (4) of the Companies Act 2013, is to be
verified, for determining the borrowing powers of the Company.

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

agreement or modification in Form No. CHG 1 (for other than Debentures) or
Form No. CHG 9 (for debentures including rectification) by branches.

Section 180 of the Companies Act, 2013, deals with restrictions on powers of
Board and Branches/ Offices to examine the same before entertaining proposals.

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

Section – 149 (1) - Every Company shall have a Board of Directors consisting of
Individuals as Directors and shall have –
(a) a minimum number of 3 Directors in the case of a Public Company, 2
Directors in the case of a Private Company and one Director in the case of a One
Person Company; and
(b) a maximum of 15 Directors; Provided that a company may appoint more than
15 Directors after passing a Special Resolution;

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

can be Public Companies.

Each Listed Public Company to appoint Independent Directors with a maximum

2 terms of 5 years each.

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

A company cannot give any guarantee or provide any security in connection with
any loan taken by its director or by any other person in whom the director is

421-2014-BC 1. ATM / Debit Card to be issued to the Karta / Ejaman only of the HUF.
2. A Separate application form duly signed by Karta / Ejaman and all other
coparceners shall be obtained.
3. On receipt of notice of death of the Karta, operation in the account to be
stopped and ATM/Debit Card is to be taken back for cancellation.
4. Branch to ensure to obtain necessary documents / Memorandum from the
minor after they become major in the HUF.
5. For issuance or renewal / duplicate card, request from all members of HUF is
to be obtained.

6. In case of lost card, request for blocking of the card can be obtained from any
member of the HUF. Blocked cad can be reactivated only after obtaining request
from all the members of the HUF.

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

456-2014-BC “Special One Time Settlement Scheme for settling Non Performing
Education Loan with original sanctioned limit of 4.00 lakhs and below”.

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

amount up to 30.06.2016.
All Education Loan with Original sanctioned limit of 4.00 lakhs & below
classified as NPA as on 31.12.2014.

458-2014-BC It has since been decided to advance RTGS business hours to 8.00 hours from
9.00 hours and extend closing time of RTGS to 20.00 hours on week days. RTGS
business window will be open from 8.00 hours to 15.30 hours on Saturdays.

036-2015-BC Competent Authority has waived the annual fee to be collected for issue of ATM
Cards for the accounts opened under Synd Balashakthi, to bring in the ‘Gen
Next’ segment of the Society into our fold and as a gesture of earning goodwill
from youth of our Nation.

Payment of Service Charges @ 1.75% of the Four Wheeler loan with a cap of
040-2015- 50000/- per loan to Authorised Four Wheeler Dealers against the loan amount
BC disbursed from the leads provided by them.

Payment of Service Charges at the rate of 1000/- per Four Wheeler loan to
the Sales Executives of Four Wheeler Dealers against the leads directed by
them and converted into real business.

Summary of Imp. BC Cir 2015

Fund Transfer transaction limit including IMPS for Mobile Banking users is enhanced from
Rs.25,000/- to Rs.50,000/- per day.

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


The decision on invoking the SDR by converting the whole or part of the loan into equity shares
should be taken by the Joint Lenders‟ Forum (JLF) as early as possible but within 30 days from the
above review of the account. Such decision should be well documented and approved by the majority
of the JLF members (minimum of 75% of creditors by value and 60% of creditors by number);

Post the conversion, all lenders under the JLF must collectively hold 51% or more of the equity
shares issued by the company.

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

300/2015/BC - The minimum amount of deposit into/withdrawal from currency chest will be
Rs.1,00,000/- and thereafter, in multiples of Rs.50,000/-.

Penal interest shall be levied at the rate of 2% over the prevailing Bank Rate for the period of delayed
reporting/wrong reporting/non-reporting /inclusion of ineligible amounts in chest balances. Penal
interest will be calculated on T+0 basis.

Soiled note remittances to RBI /diversion to other currency chest/s should not be shown as
withdrawal by chest/s / link offices. In case such remittances are wrongly reported as 'withdrawals', a
penalty of Rs.50,000/- will be levied irrespective of the value of remittance and period of such wrong

RPA- (Reserve Pending Appropriation)

Central Govt has declared second and fourth Saturday of every month as public holiday for Banks in
India in exercising power conferred by section 25 of the N I Act 1881 wef 01.09.2015.
This is applicable to banks included or not included in second schedule of RBI Act 1934.

A new overdraft product 148 is created for SyndMUDRA Card.

Jeevanpramaan- Seeding of Aadhar numbers of Pensioners

PAIS-Personal Accident Insurance Scheme- arrangement with United India Inssurance Co Ltd
Rs.13/- per head, Card holder up to age 70 are eligible
SKCC/SKSCC- share of Bank-Rs.8.65, Borrower Rs.4.35
SSCC- share of Bank-Rs.6.50, Borrower Rs.6.50

Standard Rates of Annual Guarantee Fees.-

Women, Micro Enterprises Others

and units in North East
Region (including Sikkim)
Up to Rs.5 Lakhs 0.75% 1.00%
Above Rs. 5 Lakhs up to 0.85% 1.00%
Rs.100 Lakhs

The differential rates of ASF/AGF are applicable depending upon NPA levels of MLIs of the Trust.
NPA level of 12% and below Standard Rates of Annual Guarantee Fees are applicable.

Charge rate of interest at Base Rate (presently 9.70%) for MUDRA Loans up to sanctioned limit of
1.00 lakh (Rupees One Lakh Only) and sanctioned on or after 08.04.2015.

Our Bank has been conferred with the highest “Rajbhasha Keerti Puraskar” for the year 2014-15
among other Nationalized Banks and Financial Institutions in Region ‘C’ for effective
implementation of Official Language Policy.

Section 20(1) of the Banking Regulation Act, 1949 lays down the restrictions on loans and advances
to the directors and the firms in which they hold substantial interest. Purchase of or discount of bills
from directors and their concerns, which is in the nature of clean accommodation, is reckoned as
loans and advances for the purpose of Section 20 of the Banking Regulation Act, 1949.

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

FCNR Deposits- Maximum period- 5 years. Minimum-1 year. Compounding effect on interest can
be given only if deposits are kept for a minimum period of one year and one day.

Reserve Bank of India has suggested implementing “checking at multiple levels of cheques with
threshold limit of 5.00 lakhs initially”.

Additional interest of 0.50% over the card rate is payable to Resident Indian Senior Citizens on
Domestic Term Deposits of less than Rs. 5 Crore and the maturity tenor of one year and above
only. (Not applicable ` deposits).

The Supreme Court upheld transgender person’s right to decide their self-identified gender and
directed the Centre and State Government to grant legal recognition of their gender identity such as
male, female or as third gender.

UAM- Udyog Aadhaar Memorandum

Full KYC exercise will be required to be done at least every two years for high risk individuals and
entities, at least every ten years for low risk and at least every eight years for medium risk
individual and entities.

Education Cess at 3% continues to be applicable for all employees/ pensioners/ pigmy commission
Surcharge @12% is applicable where the total income exceeds 1crore.

‘Time Deposits’ to include recurring deposits within its scope for the purposes of deduction of tax
under section 194A of the IT Act, 1961. TDS has to be effected in the Recurring Deposits also
where Interest on TD exceeds 10,000/- unless declaration in Form15G/H is submitted.


Branches/extension counters of the bank will consider providing immediate credit for outstation
cheques / instruments up to the aggregate value of 15000/- (rupees fifteen thousand only) tendered for
collection by individual account holders subject to satisfactory conduct of such accounts for a period
not less than 6 months.

The facility of immediate credit would also be made available in the case of instruments denominated
in U.S. Dollars and other foreign currencies provided the rupee equivalent of such instruments is not
more than 15000/- subject to the same norms as applicable to domestic cheques.

For cheques and other instruments sent for collection to centers within the country the following time
norms shall be applied:
(a) Cheques presented at any of the major Metro Centres (New Delhi, Mumbai, Kolkata and
Chennai) and payable at any of the other three centers: Maximum period of 7 days*.
(b) Other Metro Centres and State Capitals (other than those of North Eastern States and Sikkim):
Maximum period of 10 days*.
(c) In all other Centres: Maximum period of 14 days*.
(d) Cheques drawn on foreign countries: Such instruments are accepted for collection on the „best of
efforts‟ basis. Bank may enter into specific collection arrangement with its correspondent bank for
speedy collection of such instruments. Bank would give credit to the party on credit of proceeds to
the bank‟s Nostro Account with the correspondent bank after taking into account cooling periods as
applicable to the countries concerned. Maximum time period (inclusive of cooling period) for
affording the credit shall be 45 days.
* Holidays are to be excluded for the purpose of reckoning the collection Period prescribed above.

Interest for delayed collection shall be paid at the following rates:

Domestic instruments:
(a) Savings Bank rate for the period of delay beyond 7/10/14 days* as the case may be in collection
of outstation cheques.
(b) Where the delay is beyond 14 days, interest will be paid at the rate applicable to term deposit for
the respective period.
(c) In case of extraordinary delay. i.e. delays exceeding 90 days, interest will be paid at the rate of
2% above the corresponding Term Deposit rate.
(d) In the event the proceeds of cheque under collection were to be credited to an overdraft / loan
account of the customer, interest will be paid at the rate applicable to the loan account. For
extraordinary delays, interest will be paid at the rate of 2% above the rate applicable to the loan

Frequent Dishonour of Cheques of the value of 1.00 crore and above:

In the event of Dishonour of cheques of the value of 1.00 crore or more, on four occasions during a
financial year for reasons like „Funds insufficient‟, „Exceeds arrangement‟ etc., no fresh cheque
book will be issued to the customer and the Branch may even consider closing the account at its
discretion after giving notice of one month.
If a cheque of the value of 1.00 crore or more is Dishonoured for a third time on any account for the
reasons specified above, a cautionary advice shall be issued to the account-holder indicating the
consequential stoppage of cheque facility or the bank‟s intention to close the account, as applicable,
if there is one more such instance of Dishonour during the year.

Frequent Dishonour of Cheques of the value of less than 1.00 crore:

In the event of Dishonour of cheques of the value of less than 1.00 crore on six occasions during the
financial year for reasons like „Funds insufficient‟, „Exceeds arrangement‟ etc., no fresh cheque
book will be issued to the customer and the Branch may even consider closing the account at its
discretion, after giving notice of one month.
If cheques of the value of less than 1.00 crore are Dishonoured for a fifth time in any account, a
cautionary advice shall be issued to the account-holder indicating the consequential stoppage of
cheque facility or bank‟s intention to close the account, as applicable if there is one more instance of
such Dishonour during the year.

If ECS (Debit) mandate on the account of a customer are Dishonoured four times in a financial year
due to reasons like „Balance insufficient‟ and „Not arranged for/Exceeds arrangement‟, the Branch
concerned shall write to the User institution and the Sponsor Bank to delete the account holder‟s
name from the list sent to the Clearing House under ECS or even consider closing the account at its
discretion after giving notice of one month.

As soon as the number of instances of Dishonour of ECS (Debit) mandates for the specified reasons
in a financial year reach three, a cautionary advice indicating the steps proposed in the event of
one more instance of such Dishonour during the year, shall be issued to the account holder.

Credit Policy and Credit Risk Policy-

Clearance of New Business Group Committee at Corporate Office shall be obtained for new
proposals of new borrowers only seeking credit facilities above 35.00 Crs and Clearance accorded
by NBG Committee shall be valid for a period of 120 days only.

Project Appraisal Cell at Corporate Office shall undertake a comprehensive credit appraisal of all
Term Loan proposals with project cost of 70.00 crore and above and Banks exposure of above 35.00
crore where production/ construction/ process is involved

Term Loan‘ is a loan which has a specified maturity which is payable in installment or in bullet

Infrastructure Finance-Prior clearance of ALCO shall be obtained for exposures above 50 crores
with repayment period of 12 years and above.

Sensitive Sector refers to advances to Real Estate, Capital Market and Commodity Sector.

Structured Financial Messaging System (SFMS)

Premature withdrawal of NRE/FCNR (B) Deposits shall not be available where loans against such
deposits are to be availed.

Insisting on external Bank loan rating for exposures of 5.00 crores and above and/or having annual
turnover of 50.00 crores and above for all borrowers except MSE, Finance against Rent Receivables
and Agriculture.

Micro & Small Enterprises are exempted from external rating for exposures up to 10.00 crores.
For borrowal proposals of above 10.00 crores, external rating need not be a pre-condition for
sanction. However, such accounts should be externally rated within six months of takeover.

Cover all advances granted to Micro and Small Enterprises up to 100.00 lakhs under CGMSE
without any exception.

In order to give focused attention to the credit needs of corporate enjoying limits of over 5.00 crore
up to 100.00 crore a separate vertical called Mid Corporate Department is established at Corporate
Office level.

Branches have to obtain minimum 2 valuation report for properties valued at 10 crore and above.
However, in respect of Housing Loans, for loan amount of 100 lakhs and above, valuation report
has to be obtained from 2 independent valuers.

Takeout Financing Arrangement: Take out financing structure is essentially a mechanism designed
to enable banks to avoid asset liability maturity mismatches that may arise out of extending long
tenor loans to infrastructure projects. Under the arrangements, banks financing the infrastructure
projects will have an arrangement with IDFC or any other financial institution for transferring to the
latter the outstanding in their books on a pre-determined basis.

Loans/advances to individuals from the banking system against security of shares, convertible bonds,
convertible debentures, units of equity oriented mutual funds and PSU bonds shall not exceed the
limit of 10 lakh for subscribing to IPOs. Advances other than for IPOs to individuals from the
banking system against security of shares, convertible bonds, convertible debentures and units of
equity oriented mutual funds held in physical and Demat form shall not exceed 10 lakh and 20 lakh

A uniform margin of 50 per cent shall be applied on all advances/financing of IPOs/issue of

guarantees and Co-acceptances for capital market operations. A minimum cash margin of 25 per
cent (within the margin of 50%) shall have to be maintained in respect of guarantees issued by banks
for capital market operations.

A ceiling of 2% of gross credit is prescribed for advances against the commodities.

Branches/Offices shall return the securities to the customer within 15 days of closure of all his direct
and indirect liabilities.

The minimum hurdle rate shall be Synd 5 in respect of all exposures including Retail Loans, below
which no exposure is permitted to be taken. In case of exposures to sensitive sectors, including Real
Estate Sector, and NBFC- including NBFC-NDSI, the hurdle rate shall be SYND-4. For takeover
accounts also, hurdle rate shall be SYND-4. However, in the case of Synd Nivas & Synd Vahan
Retail Product, the hurdle rate shall be Synd 6.

Hurdle rating for Takeover of accounts (other than financing against Rent Receivables & MSME) is
SYND 4. For financing against Rent Receivables & MSME borrowers, it is SYND 5.

In case of finance to Public Ltd Companies, it should be ensured that if the facilities sanctioned and
the existing facilities, taken together, are in excess of paid-up capital and free reserves of the
borrower company, a resolution under Section 180 of the Companies Act, 2013 authorizing the
borrowing has to be obtained.

Working Capital assessment computed on the basis of 20% of projected annual turnover for MSE
borrowers up to Credit limits of 5.00 crores for both new and existing loans.

In the case of credit limits of above 2.00 crore for IT & software industry, cash budget method to be
adopted for assessment of working capital limit.

All NBFCs with exposures of 10.00 crore and above, assessment shall be based on Cash Budget

Prior clearance of ALCO shall be obtained for taking term loan exposures above 50 crores with
repayment period of 12 years and above.

As RBI has reduced the risk weight in respect of CRE-RH to 75% and also the provisioning norms
for standard assets to 0.75% (irrespective of rating), External Rating in respect of CRE-RH category
is not to be insisted.

An overall exposure ceiling of 20% of gross credit and non SLR investments has been fixed in
respect of all exposures under Real Estate.

Within the overall ceiling, a sub ceiling of 7.50% of gross credit and non SLR investments has been
fixed for commercial real estate exposures, including CRE-RH and LRD.

Exposures under CRE & CRE-RH, other than LRD shall not exceed 4.50%.

Margin in respect of CRE proposals-Minimum margin of 50% (including Owner‘s fund in the
project and advances from buyers) of the project cost shall be maintained.

Exposures to NBFCs including MFI shall not exceed 22% of total gross credit and non SLR

Branches can sanction & issue guarantees, performance or financial for a maximum period of 3 years.

Beyond 3 years up to 10 years, request for Bank Guarantee shall be examined and considered /
sanctioned by the Regional Managers (RLCAC I) or FGMLCAC.

Any Guarantee with maturity of more than 10 years shall be considered / sanctioned only by CO-

365-2015-BC- “It has been decided to allow State Level Bankers’ Committee / District Level
Consultative Committee/ Banks to take a view on rescheduling of loans if the crop loss is 33% or
more. Banks may allow period of repayment of upto 2 years (including the moratorium period of 1
year) if the loss between 33% to 50%. If the crop loss is 50% or more, the restructured period for
repayment may be extended to a maximum of 5 years (including the moratorium period of one

Circular No.393-2015-BC/Renewal of Deposits:

1. Renewal of overdue domestic Term Deposit:

a) Whenever overdue term Deposits are renewed, they must be renewed for a minimum period of 7
days plus overdue period.

b) In case of premature refund of the renewed Deposit, which has not completed 7 days from the
actual date of renewal, no interest is payable on the Deposit for the overdue period even though the
deposit was with the bank for more than 7 days.

2. a) If the Deposits are renewed within 7 days from the date of maturity, interest rate prevailing on
the date of maturity is payable.
b) Where the overdue period from the date of maturity exceeds 7 days, the rate of interest payable on
the overdue term deposits shall be the applicable rate of interest (for the period of renewal) prevailing
on the date of maturity or on the date of renewal, whichever is less.
3. If the 7th day falls on a Sunday/holiday, the Deposit should be renewed on the previous working
day itself.

Circular No.500-2015-BC-
Powers to be exercised by the various Authorities for settlement of claims to the assets of the
deceased customers. [Net asset value after deducting direct/indirect liability].
1) Branch Head in Scale I (not being Prob. Officer)- Rs.75,000/-
2) Branch Head in Scale II-Rs.1,50,000/-
3) Branch Head in Scale III-Rs.2,50,000/-

Micro Units Development and Refinance Agency Ltd (MUDRA)-

Non- farm enterprises in manufacturing, trading and service sector whose credit needs are below
10.00 lakhs and loan given to income generating activities disbursed on or after April 08, 2015, will
be known as MUDRA loans.

Eligible beneficiaries pursuing micro enterprises can be issued SyndMUDRA Card up to a card
limit of 25000/- to meet working capital needs. New overdraft product 148 is created for
SyndMUDRA Card.


1. The loan will be in the range of 5000/- to 150000/-.
2. Uniform Rate of Interest at Base Rate + 1.50 % p. a. i.e., 11.20 % at present.
3. The loan will have maximum tenure up to 7 years.
4. No collateral security required for Skill Loan. Credit Guarantee of National Credit Guarantee
Trust Company Ltd (NCGTC) covering 75% of the outstanding loan amount is available once the
arrangement with NCGTC by the Bank is operational.

Where the cost of House/Flat/Dwelling unit does not exceed 10.00 lakhs, Stamp Duty, Registration
charges and other Documentation charges may be included to the cost of the House/Flat/Dwelling
unit for the purpose of calculation of LTV.

Branches are advised to grant to eligible borrowers belonging to SCs / STs such advances to the
extent of not less than 40 percent of total DRI advances.

Under the DRI scheme, the eligibility criteria that size of land holding should not exceed 1 acre of
irrigated land and 2.5 acres of unirrigated land is not applicable to SCs / STs. Moreover, members of
SCs / STs satisfying the income criteria of the scheme can also avail of Housing Loan up to 20,000/-
per beneficiary over and above the individual loan of 15,000/- available under the scheme.



The Government of India initially allotted a corpus of 200.00 Crores for the scheme. Industrial
Finance Corporation of India Limited (IFCI) has been appointed as the Nodal Agency for the
Scheme and also entrusted with the responsibility of managing the scheme. IFCI, under the aegis of
Department of Financial Services (DFS) shall provide guarantee to Public Sector Banks for providing
assistance to SC Entrepreneurs. The Member Lending Institution (MLI) shall enroll as member of
IFCI Ltd., in order to avail guarantee under the scheme. The guarantee cover shall be ranging from
15.00 lakh to 5.00 Crore.

Government of India’s notification dated April 08, 2015, where in they have reduced the criterion of
crop loss from 50% to 33% for providing input subsidy (compensation) to the farmers affected by
Natural Calamities.


All credit limits classified as performing assets and secured by inventory and / or book debts
including Working Capital Demand Loans of 5 crore and above in SYND-1 to SYND-4 and 1 Crore
and above in other rated accounts are to be subjected to stock audit once in a financial year.

Stock and Receivable (Book Debt) Audit shall be completed in all eligible accounts by 30th
November every year and the audit report shall be closed by 31st January of the succeeding year.

In the case of NPAs, all accounts including suit filed / DRT cases with real account balance of 5
Crores and above where hypothecation of stock and / or book debts taken as security and the same is
available, Stock Audit at annual intervals shall be conducted.

Units shall be compulsorily visited by Regional offices, starting from exposure of 5.00 crores
and above.

CRILC -Reserve Bank of India (RBI) has set up a Central Repository of Information on Large
Credits (CRILC) to collect, store, and disseminate credit data to lenders.

Any sanction of either Working Capital or Term Loan (fresh/enhancement) that may take the total
exposure to 5.00 crores and above (Fund based and non fund based) to any borrower shall be subject
to Credit Audit.

Provisioning Norms for NPA Accounts-

Substandard Asset-
(on the balance outstanding without making any allowance for Guarantee cover or securities
Secured Exposure under SSA (on entire outstanding book balance) 15%
Unsecured Exposure under SSA (on entire outstanding book balance) 25%
Unsecured Exposure under SSA in respect of advances to Infrastructure 20%
Sector where appropriate mechanism of escrow accounts available and
branch has a clear and legal first claim on these cash flows.
Doubtful Asset -
On Secured liability-
Doubtful assets upto 1 year (DA 1) 25%
Doubtful assets 1 to 3 years (DA 2) 40%
Doubtful assets more than 3 years (DA 3). 100%
On unsecured liability covered by DICGC claim received or ECGC/ Nil
CGTMSE/CRGFTLIH claim received/ lodged/ cover available
On unsecured liability not covered by DICGC claim received or ECGC/ 100%
CGTMSE/CRGFTLIH claim received/lodged/cover available.
Loss Asset 100%

Deposit products-
Our various Deposit 1. Synd Silver Current Account – Monthly Minimum Average Balance
products – Rs.25,000/-
2. Synd Platinum Current Accounts – Monthly Minimum Average
Balance - Rs.2,00,000/-
3. SyndFlexi Platinum Current Account-Monthly Minimum Average
Balance- Rs.1,00,00,000/-
4. Multicity SB Accounts – Monthly Minimum Average Balance -



ACCOUNT  Minimum Average Monthly Balance of Rs.10,000/-
 Balance in excess of Rs..10,000/- gets swept out into Fixed Deposit
for 180 days in units of Rs.1,000/-
 In case of shortfall in balance to meet payment of cheques etc, drawn
on the Savings Account, the Fixed Deposit is broken prematurely
without any penalty in required number of units of Rs.1,000/- and
swept back into the Savings account.

SYND FLEXI PREMIUM Minimum monthly average balance - Rs.100.00 lakh-

CURRENT ACCOUNT  Amounts available in the account in excess of Rs.100.00 lakh will
get automatically swept-out into a fixed deposit for 7 to 14 days
(minimum 7 days & maximum of 14 days) in units of Rs.100.00
lakh, once in a week.

 Rate of interest - As applicable to Bulk domestic term deposits of

the tenor of 7 – 14 days.

 The customer has to opt for the specific tenure for which the
amount shall be swept out to be placed in fixed deposit, within the
prescribed range of 7 to 14 days while opening the a/c

 Rate of interest - As applicable to Bulk domestic term deposits of

the tenor of 7 – 14 days .

SAVINGS BANK is aimed at the day-to-day savings need of ordinary individuals and fetches
ACCOUNT interest on daily product basis payable on half yearly basis.

CURRENT ACCOUNT can be opened by individuals, partnership firms, private and public limit
companies, HUFs, societies, trusts etc.

SYNDSAMANYA - No Frills (Zero Balance) Account aimed at persons below poverty line,
SAVINGS BANK students etc.

 Minimum Balance: Zero Balance

 Rate of Interest: 4.00% p.a. (at present)

 No. of Cash withdrawals permitted absolutely free of service charges

at Branch Counter: 50 PER YEAR

 No restrictions on number of transactions on Bank’s ATM

FIXED DEPOSIT A flexible interest earning term deposit with minimum deposit amount of
Rs.1,000/- for periods ranging from 7 days to 10 years.
SOCIAL SECURITY An ideal monthly income plan wherein you receive monthly interest (at
DEPOSIT discounted rate) or quarterly interest on the deposit. All you need to do is to
invest a minimum amount of Rs.1000/- for a fixed term, ranging from 12
months to 120 months.
VIKAS CASH Fetches you interest compounded quarterly along with principal at the time
CERTIFICATE of maturity of deposit. Minimum amount accepted is Rs.1000/- and thereafter
in multiples of Rs.100/-. Term of the deposit could be for periods ranging
from 6 months to 120 months.
SYNDICATE SUVIDHA A Fixed Deposit with partial withdrawal facility. A flexible and convenient
DEPOSIT scheme whereby a deposit made for a fixed period can be withdrawn in
multiples of Rs.1,000/- when needed without penalty. Accepted for periods
ranging from 15 days to 120 months. The scheme balances the needs of high
returns and liquidity.
SYND CORPORATE Minimum amount accepted is Rs.500 lakh and thereafter, in multiples of
SUVIDHA DEPOSIT Rs.100 lakh. Period could range from 7 days to 180 days. Partial
SCHEME withdrawals in multiples of Rs.100 lakh permitted subject to prior notice of
one day and the balance outstanding after withdrawal should not go below
Rs.500 lakh in any case.

SYNDTAXSHIELD The scheme is drawn on the lines of the Union Government’s

DEPOSIT SCHEME notification on Bank Term Deposit Scheme, 2006 for the purpose of Sec
80C(2)(xxi) of the Income Tax Act.
 Individuals / HUF eligible to open an account with the Bank.

 Minimum Deposit - Rs.100/- and multiples thereof

 Maximum Deposit - Rs.1,00,000/- per person per annum.

 Term – Minimum 5 years

 Rate of Interest – As applicable to normal deposits.

 Premature withdrawal not permitted.

RECURRING DEPOSIT An ideal scheme to save in monthly instalments designed for salaried
persons, professionals, businessmen etc. Minimum monthly instalment
payable is Rs.100/- and the period could range from 12 months to 120

PIGMY 1928 SCHEME This flagship product of the Bank is inspired by the truth that it is the little
drops of water which make a mighty ocean. The depositors can deposit
amounts as low as Rs.5 on a daily / weekly / monthly basis through the
Bank’s authorised agent at their doorstep. The period of the deposit is 63

PIGMY PLUS 2007 A variant of Pigmy 1928 scheme. Minimum contribution accepted is Rs.5
per occasion. The period of the deposit is 72 months.
RESIDENT FOREIGN Resident Indians and NRIs who have returned to India for permanent
CURRENCY [RFC] residence can open RFC accounts in select foreign currencies at branches
ACCOUNT nominated for the purpose. The opening of the accounts and operations
thereon are subject to rules laid down by Reserve Bank of India. RFC
Deposits can be opened in SB as well as Term Deposits.
Non-Resident (External) These accounts are designed to help NRIs place their savings in a branch of
{NRE} Savings Bank their convenience in India. The credits in the account can only be out of
deposits remittances from abroad/Travellers Cheques/Foreign Currency
notes/Transfers from NRE/FCNR accounts/ proceeds of certain permitted
investments made out of remittances from aboard. The accounts earn interest
@ 4.00% on daily product basis. The balance in the account is repatriable.
The interest earned on the account is exempted from Income Tax.
Non-Resident (External) NRIs can also invest their savings in term deposits with the Bank. The Bank
{NRE} Term Deposit. offers both schemes, which offers simple interest and those, which fetch
compound interest. The interest rate on these deposits is on par with the
domestic deposits. Provisions relating to eligible credits into the account,
repatriability of funds and exemption from Income Tax are same as in the
case of NRE Savings Bank deposits.

Foreign Currency Non These accounts are denominated in the following select foreign currencies:
Resident Accounts U.S. Dollar, Great Britain Pounds, Euro, Canadian Dollar and Australian
(FCNR-B) Dollar. The interest rates on these deposits are subject to RBI directives.
Provisions relating to eligible credits into the account, repatriability of funds
and exemption from Income Tax are same as in the case of NRE Term
Deposits/ Savings Bank deposits. Exchange risk is born by bank.

Non-Resident (Ordinary) Besides all credits permitted in NRE A/cs, all legitimate dues in India can be
Account {NRO) credited to NRO A/cs. The accounts can be maintained in the form of
Savings, Current, Recurring or Fixed deposit A/cs. The accounts can be
jointly held with residents. The fund held in NRO a/c is repatriable as per
RBI guidelines issued from time to time. Presently, it is permissible to remit
or transfer to NRE A/c an amount not exceeding USD one million, per
financial year (April- March), subject to an undertaking by the remitter in the
form 15CA (in duplicate) and a certificate by Chartered Accountant in form
15CB (in Duplicate) as prescribed by CBDT, certifying that the amount
proposed to be remitted is eligible for remittance and that applicable taxes
have been paid/provided for. Tax is applicable on the income earned in the
account i.e. by way of interest and the same is taxable as per DTAT.

INTEREST PAYABLE In the event of death of the depositor before the date of maturity of deposit
ON TERM DEPOSIT IN and amount of the deposit is claimed after the date of maturity, the Bank
DECEASED ACCOUNT shall pay interest at the contracted rate till the date of maturity. From the date
of maturity to the date of payment, the Bank shall pay simple interest at the
applicable rate obtaining on the date of maturity, for the period for which the
deposit remained with the Bank beyond the date of maturity.

However, in the case of death of the depositor after the date of maturity of
the deposit, the bank shall pay interest at savings deposit rate obtaining on
the date of maturity from the date of maturity till the date of payment.

Deduction in respect of Section 80TTA has been introduced from this Financial Year [2012-13] and
interest on deposits in it allows to an employee from his gross total income if it includes any
savings account (Section income by way of interest on deposits (not being time deposits) in a savings
80TTA): account a deduction amounting to :
(i) in a case where the amount of such income does not exceed in the
aggregate ten thousand rupees, the whole of such amount; and
(ii) in any other case, ten thousand rupees.
If such savings account is maintained in a
(a) banking company to which the Banking Regulation Act, 1949 (10 of
1949), applies (including any bank or banking institution referred to in
section 51 of that Act);
b) co-operative society engaged in carrying on the business of banking
(including a cooperative land mortgage bank or a co-operative land
development bank); or
(c) Post Office as defined in clause (k) of section 2 of the Indian Post Office
Act, 1898 (6 of 1898)

“Either or Survior” Term Deposit with “Either or Survior” or “Former or Survior” mandate,
banks are permitted to allow premature withdrawal of the deposit by the
surviving joint depositors on the death of other, only if , there is joint
mandate from the joint depositors to this effect.

Deposit Insurance Each depositor in a bank is insured upto a maximum of Rs.1,00,000 (Rupees
One Lakh) for both principal and interest amount held by him in the same
capacity and same right as on the date of liquidation/cancellation of bank’s
licence or the date on which the scheme of
amalgamation/merger/reconstruction comes into force. The DICGC is liable
to pay to each depositor through the liquidator, the amount of his deposit up
to Rupees one lakh within two months from the date of receipt of claim list
from the liquidator.
Coins The Government of India decides the quantity of coins to be minted on the
basis of indents received from the Reserve Bank.
NBFC All NBFCs – ND with an asset size of 100 crore and more as per the last
audited balance sheet will be considered as a systemically important NBFC –
ND. (NBFC SI -Non-deposit taking Systemically important NBFC)
Capital Market The aggregate exposure of the bank to the capital markets in all forms (both
fund based and non fund based) should not exceed 40 per cent of its net
worth as on March 31 of the previous year.
Return of Securities Branches/Offices shall return the securities within 15 days of closure of all
direct and indirect Liabilities.
Currency Swaps Currency swaps are derivative instruments.

General Banking-
A Document executed outside India should be stamped- within 3 months of receipt of document
in India.
In terms of provision contained in Sec 26 of banking regulation act every banking company is
required to submit an annual return to the RBI within 30 days after close of calendar year
containing details of accounts which have remained inoperative for a period of -10 years.
The limitation period for a Decree is -12 years.
The limitation period in case of pledge is – No limitation.
If a property/goods worth Rs1 lakh is insured for Rs 80000/- and the loss occurred is to the
extent of Rs 60000/-then insurance company is liable to pay-Rs.48,000/- (80% of the property /
goods value is insured- Hence claim also at 80%)
Customer is having a current account and the minimum balance required is Rs.2000/. The
present balance is Rs.2500/-.A cheque is presented in clearing for Rs 2500/- - pass the cheque.
Current account opened on 01.01.2016 and cheque dated 25.12.2015 presented in the clearing on
25.01.2016 - pass the cheque.
Customer of a bank issues a cheque for Rs.50,000/- to Prime Ministers Relief Fund as donation.
The cheque was returned unpaid with reasons “Funds Insufficient”- No criminal complaint can
be filed as the cheque was not issued for any discharge of liability.
Subhash is having a saving account and he is also power of attorney holder for saving account
holder Ramesh. You receive the notice of death of Mr. Subhash. Two cheques signed by Satish
one in his saving account and the other one in the account of Ramesh are presented in clearing-
pass the cheque of SB account Ramesh and return the cheque of Subhash’s SB account.

In terms of sec 138 of N.I act 1881, the payee should give notice within 30 days of receipt return
of cheque for insufficient balance
The term "Blue chip " means- shares of progressive, soundly run public limited companies with
excellent dividend record.
“Bulls & Bears” term is used in- stock exchange- Share Market.
In a securitization deal, the role of a Special Purpose Vehicle (SPV) is to manage the acquired
loans for the purpose of realization or holds them as investment till maturity.
As per FIMMDA’s guidelines, the Mid-Office is responsible for Risk Management.
The regulator for Mutual Funds in India is SEBI.
Banker’s lien is not barred by law of limitation.
In a Garnishee Order, the banker on whom garnishee order served is Judgement Debtor’s
Sec 131 of NI Act,1881 extends protection to the Collecting Banker.
Our bank’s customer XYZ Ltd, enjoys a SOD limit of Rs.1,00,000.00. The SOD account shows
a credit balance of Rs,10,205.00. The relationship between your bank and XYZ Ltd is:
In respect of Regional Rural Banks, the share holding pattern is Central Government 50%,
State Government 15% and Sponsoring Bank 35%.
The Capital Adequacy Ratio is presently at 9%.
All cheque forms should be printed in Hindi and English. The customer may, however, write
cheques in Hindi, English or in the concerned regional language.
An instrument written in Hindi having date as per Saka Samvat calendar is a valid instrument.

MUDRA – Micro Units Development & Refinance Agency Ltd.

Shishu : covering loans upto Rs.50,000/-
Kishor : covering loans above Rs.50,000/-and upto Rs.5 lakh.
Tarun : covering loans above Rs.5 lakh and upto Rs.10 lakh.
Subrogation- Person taking the rights of another person. Example: Guarantor stepping into the
shoes of the creditor.
In case of KYC for SHG, KYC verification for office bearers would suffice.
Time intervals for updation of KYC.
Low risk-10 years, Medium risk-8 years and High risk-2 years.
For Foreign students, one month time is allowed to submit proof of local address.
In case Low risk customers are not able to submit KYC for Genuine reasons, then 6 months
time from the date of opening can be given to them to submit documents.
Opening an account of a person who has lost both his hands-Toe mark can be accepted as
Ultra vires –beyond the powers of the company.
A blind person can open a current account but an illiterate cannot open a current account.
In HUF, senior male coparcener is Karta.
Banking Regulation Act -Sec 11 -Paid up Capital & Reserve requirement - For Domestic
banks-minimum paid up capital & reserve -Rs.5 lacs. Foreign bank-Min Rs.15 lacs & Min
Rs.20 lacs if bank has place of business in Mumbai &/or Kolkata.

Banking Regulation Act-Section 24 -Maintenance of SLR - SLR can be max 40%.
RBI Act-Sec 42(1)- Cash Reserve Ratio- no minimum or maximum limit for CRR. Further, RBI
does not pay interest on balance held for CRR purpose by the banks.
NI Act - Sec 5 -Bills of exchange - is an instrument in writing, signed by the maker containing an
unconditional order directing a person to pay certain sum to bearer.
NI Act -Sec 6 -Cheque - is a bill of exchange drawn on specified banker to be paid only on
NI Act -Sec 18- Difference in words & figure-when there is difference in amount in words &
figure, the amount in words is to be treated as the amount ordered by the drawer to pay.
Cheque having impossible date like 31/09/2015 presented on 30/09/2015- pass the cheque.
Cheque dated prior to date of account opening – Pass the cheque.
Cheque drawn in different inks, such as blue, red, green-Pass the cheque.
Usufructuary Mortgage- In this type of mortgage the creditor (Mortgagee) is placed in
possession of the property and he is entitled to enjoy the income generated by the property
(e.g., rent) and appropriate the same towards the interest and principal of the mortgage money. In
this mortgage the physical possession is given to the mortgagee and the mortgagee can retain the
possession until the payment of mortgage money.
Mortgage by conditional sale-in a mortgage by conditional sale, the mortgagor ostensively sells
the mortgaged property, on a condition that, the sale will become absolute on a certain agreed
date if the mortgagor fails to repay the mortgage money and the sale will become void if the
money is repaid as per the terms and conditions. Sometimes, the condition would such that in
case of payment of mortgaged money as per the agreement, the buyer (Lender) will resale the
property to the seller (Borrower).
English Mortgage - is a registered mortgage by which the entire property gets transferred in
the name of the mortgagee and upon repayment of the debt on certain date appointed date, the
property will be re-conveyed to the Mortgagor.
Indian Contract Act- came into effect on 01/09/1872. Not applicable to J and K.
Section 124 –Contract of Indemnity.
Section 126-Contract of Guarantee.
Section 130 – Assigment.
Section 148-Bailment.
Section 170/171 –Lien
Section 172-Pledge (Bankers lien is an implied pledge)
Consumer Protection Act -Limitation period-2 years from the date of cause of action
Jurisdiction- for claims-
Claims up to Rs 20.00 lacs -District forum
Rs.20 to 100 Lacs -State commission
Above 100 Lacs -National commission. COPRA is not applicable to J and K.
Right to Information Act- 2005- Not applicable in Jammu & Kashmir.
Fee prescribed for application is Rs.10/-. No fee is payable by person below the poverty line.
The public Information Officer should furnish the information within 30 days of receipt of
application (for life or liberty of a person within 48 hours)
Penalty Rs.250/-per day maximum of Rs.25000/-.
Any person can appeal (First) within 30 days from receipt of decision or expiry period. Second
appeal can be made within 90 days from receipt of decision of first appeal or expiry.
Exemption from disclosure of information is available in terms sec 8 and for rejection as per sec9
Damodharan Committee- Removal on foreclosure charges on Housing Loans.

The maximum amount of ECB which can be raised by a corporate other than those in the hotel,
hospital and software sectors, and corporate in miscellaneous services sector is USD 750 million
or its equivalent during a financial year.

Corporates in the services sector viz. hotels, hospitals and software sector and miscellaneous
services sector are allowed to avail of ECB up to USD 200 million.

Zero coupon Bond: is a bond bought at rate below the face value (Discount Rate) and on
maturity the face value will be paid.

Risk weight for Housing loan sanctioned to staff members is 20%.

Green shoe option: Where the underwriter sells the shares more than the original determined by
the issuer. In simple terms it refers to Over allotment option. It provides additional price stability

Excess money supply leads to –Inflation.

Digits in IFSC-11 - IFSC-Indian Financial Sector Code.

Deposits received from public are invested in Govt. securities is called “Narrow banking”

FATF-Financial Action Task Force.

Parri Passu Charge: Security will be shared by banks in the ratio of outstanding amount.

CAMELS is the rating model done by RBI for public sector banks.
C-stands for Capital Adequacy.
A-stands for Asset Quality
M-stands for Management Quality/effectiveness.
E –stands for Earnings
L-stands for liquidity.
S-sensitivity to market risk.

Factoring–Financing short term receivables.

Lok Adalat-Cases involving amount up to Rs. 20.00 lacs

Limited Liability Limited Liability Partnership Act 2008. Implemented wef 09-01-2009 as per
Partnership recommendations of Naresh Chandra Committee 2003 & Irani Committee
As it is a separate legal entity, it is liable to the full extent of its assets and liability
of Partners would be limited to their agreed contribution of the LLP. Any two
persons can form LLP & there is no upper limit on the number of Partners in LLP.
LLP Act also permits Foreign Residents ( Individuals & Body Corporates ) to
became Partner in LLP in India. Change of Partners will not affect the existence,
Rights or Liability of LLP. The LLPs need Registration with Registrar of
Companies (ROC).
Net Interest Margin Net interest margin is the net interest income divided by average interest earning
Nostro accounts Foreign currency settlement accounts that a bank maintains with its overseas
correspondent banks. These accounts are assets of the domestic bank.
Off-Balance Sheet Off-Balance Sheet exposures refer to the business activities of a bank that generally
exposures do not involve booking assets (loans) and taking deposits. Off-balance sheet
activities normally generate fees, but produce liabilities or assets that are deferred
or contingent and thus, do not appear on the institution's balance sheet until or
unless they become actual assets or liabilities.
Option An option is a contract which grants the buyer the right, but not the obligation, to
buy (call option) or sell (put option) an asset, commodity, currency or financial
instrument at an agreed rate (exercise price) on or before an agreed date (expiry or
settlement date). The buyer pays the seller an amount called the premium in
exchange for this right. This premium is the price of the option.
Risk The possibility of an outcome not occurring as expected. It can be measured and is
not the same as uncertainty, which is not measurable. In financial terms, risk refers
to the possibility of financial loss. It can be classified as credit risk, market risk and
operational risk.
Risk Weights RW is the portion of loans that is counted towards total assets against which banks
have to maintain statutory reserves. High Risk Weights discourages lending by
increasing the capital requirement for the lenders. Basel II sets out a risk-weighting
schedule for measuring the credit risk of obligors. The risk weights are linked to
ratings given to sovereigns, financial institutions and corporations by external
credit rating agencies.
Subordinated debt Refers to the status of the debt. In the event of the bankruptcy or liquidation of the
debtor, subordinated debt only has a secondary claim on repayments, after other
debt has been repaid.

Joint depositors Where the deposit has been made in the names of two or more persons, the name of
one or some of them can be deleted or substituted at the request of all the joint
depositors including the person whose name is proposed to be deleted; such deposit
shall continue till maturity without any alteration in the other original terms. At
least one of the original depositors should continue to be a depositor.

Where the deposits are encumbered/attached and the like, addition/deletion/
substitution should not be permitted.

In the case of deposits standing in the name of a minor, no addition of name should
be allowed. Deletion/substitution of minor's name also should not be allowed
except in the case of death of minor.

Current A/c No interest shall be paid on Current Account balances as per the Reserve Bank of
India Directive on Deposit Interest rates. However, interest at the rate allowed on
SB Account shall be paid on balances held under accounts of Regional Rural Banks
and the deceased individuals, as per SB rules. In case of minor's account, whether
self-operated or otherwise, nomination should be made by a person lawfully
entitled to act on behalf of the minor.

Joint Deposits If there are no such conditions regarding repayments the deposit shall be deemed to
be the property of all of joint holders and is repayable to all of them jointly.

Overdue Deposits No interest can be allowed for the overdue period of any term deposit if the deposit
is not renewed with effect from the date of maturity.

Other assets Other assets like Suspense debit, unadjusted items under Sundry assets,
Unreconciled debits will attracts 100% provision to be made by bank.
Approved Valuer “Approved valuer” under SARFAESI Act means a person registered as a valuer
under section 34AB of the Wealth-tax Act, 1957, and approved by the board of
directors or board of trustees of the secured creditor, as the case may be.
Unclaimed Deposit Balance in cumulative deposit accounts, which have ceased to be such deposits in
terms of the rules governing such deposits. Excess Pigmy Collections received after
maturity of the relative deposit- ‘are to be treated as 'Unclaimed Deposits'.
Banker- Customer Relationship between bank and customer in case of goods left by mistake in
Relationship custody of the bank- Trustee & beneficiary.
Partnership firm Partnership firm of more than 10 persons in banking business and more than 20 in
trading firm is not a legal partnership and not valid in law. Partnership Act 1932
provides registration of firm with Registrar of Firms.

All the three partners only (not a minor ) will sign the account opening form for
opening a current account in case of a partnership firm where the firm has three
partners and a minor, aged 17, has been admitted to the firm for benefits of
Minor in Minor can be admitted to the benefit of partnership firm. At any time, six months
Partnership firm of the minor attaining majority or obtaining the knowledge that he has been
admitted to benefit of partnership which ever is later.
Recurring Deposit Penalty may be set off against payment of equal number of advance installments.
Date of maturity is postponed by exactly one month from the date of payment of
last installment in case

SCSD Senior Citizen Security Deposit . Age required above 60 years.
No additional interest is payable to Sr. Citizens on the domestic term deposit of
Rs.5.00 Cr and above.

Minors Until person completes 18 years is regarded as minor. However before completion
Indian Majority Act of 18 years if guardian of a person or property is appointed by a court, the minority
1875 under Section extends to the age of 21 years.
Old Records Banks to preserve records of Suspicious transaction for a period of minimum 10
years from date of transaction. Record of documents to be kept for minimum 10
years from date of termination of relationship.
Direct Quotation Sell high, Buy Low. Say 1 USD = Rs. 48.50
Foreign Currency is constant and Home Currency is variable.
Indirect Quotation Buy High, Sell Low . Say Rs.100. = USD 2.06
Home Currency is constant and Foreign Currency is variable.
Forward Contract A forward contract is an agreement between two parties to buy or sell an agreed
amount of a commodity or financial instrument at an agreed price, for delivery on
an agreed future date.
Hedging - Taking action to eliminate or reduce exposure to risk.
Mitra Committee Has suggested that a legal compliance certificate needs to be mandated in all
transactions. In the case of exercise of credit sanctioning powers, it is to be ensured
that all due diligence has been taken.
Bank Mergers Gangadharan Committee.
Bank Guarantee In view of the changed scenario of the Banking Industry where banks extends long
term loans for a period longer than 10 years for various projects, RBI has decided
to allow banks to issue BG for period beyond 10 years. In all other cases, banks can
issue BG up to 10 years only.
Basel Committee Basel is a beautiful place in Switzerland. The Basel Committee usually meets every
three months at the Bank for International Settlements (BIS) in Basel, where its
permanent Secretariat is located. The Bank for International Settlements (BIS) was
established in 1930.
The Basel Committee, popularly known as BCBS (Basel Committee on Banking
Supervision) was established at the end of 1974.

Basel-I Capital Basel-I Capital Accord introduced in India in 1992-93 on recommendations of

Accord Narasimham Committee. All commercial banks (other than RRBs) in India are
required to maintain minimum 9% capital on risk weighted assets as per RBI

Basel – II Accord The Basel committee issued a detailed document on capital measurement and
capital standards on 26th June 2004 known as Basel II recommendations covers
Operational Risk and residual risk in addition to credit and market risk.

Capital to Risk This is the capital ratio, which denotes the financial soundness of the bank. It is
Assets Ratio calculated as the ratio of capital to risk weighted assets.

(CRAR) It is also called as Capital Adequacy Ratio.

CRAR = capital (Tier I and Tier II capital)/total risk weighted assets x 100.
Banks are required to maintain a minimum Capital to Risk-weighted Assets Ratio
(CRAR) of 9% as per RBI guidelines.

Base Rate Deepak Mohanty ( ED of RBI) Chairman of RBI Panel to review BPLR structure,
recommended introduction of base rate system. Base rate will be new Benchmark
Rate replaces BPLR. Banks are free to charge a risk premium ( spread ) over the
base rate. However, they can not lend below the base rate.
DRI Advances, LD/ODD & Staff Loans are exempted from Base Rate application.

KYC Guidelines KYC guidelines have been issued by RBI u/s 35-A of B R Act.

Banks to keep a record of cash transactions of Rs.10 lac and above.

Under Know Your Customer guidelines of RBI, for 5 years period the records are
required to be maintained.

External rating For Basel II purposes, the following only four external rating agencies are approved
agencies which are by RBI/SEBI.
approved by RBI ICRA
CRISIL - A Standard & Poor Company.
Advances to Self Classified as Advances to the Weaker Section.
Help Groups (SHG)
DRI Scheme Under the scheme, financial assistance is extended at concessional interest @ 4%
p.a. to customers belonging to selected low income groups for productive purpose.
Now, RBI have enhanced the limit of the loan per beneficiary under DRI Scheme
from Rs.6500/- to
Rs.15000/- for general purposes and from Rs.5000/- to Rs.20000/- for housing
The ceiling on family income of the customer under the scheme is revised to Rs.
18000/-p.a. in rural areas and Rs.24000/- p.a in semi urban and urban areas.
The land holding criteria applicable to customers remains either
“landless” or “owning not more than one acre of irrigated land or not more than 2.5
acres of dry land”. Land holding criteria does not apply to SC/ST customers.
Bank is required to lend at least 1% of the previous year’s outstanding advances
under DRI scheme.
Settlement of Death While settling the claim amount up to Rs.25,000/- branches need not insist on
Claims production of legal heir ship certificate or any other documents from the claimants.
Cir.181/2007/BC However, branches shall obtain proof of death and ensure that the identity of the
claimants is established to the satisfaction of branch.

Death claims must be settled with in maximum time of 15 days from the date of
receipt of death claim.
For opening the account in the name of ‘Executor’ of will, Probate is required.
Probate is a Certificate issued by Court for settlement of property of deceased.
Garnishee Order The bank received garnishee order on saving bank account of Mr. A at 11.0 a.m.,
who deposits Rs. 40000 at 1.0 p.m. i.e. after service of the order. It may be noted
that the garnishee order will not apply to this amount of Rs.40000 received after
service of the garnishee order. Garnishee Order is not applicable on un-used cash
credit or overdraft limit because funds available in the OD limit are not owned by
the party.
“Budgetary “Budgetary allocation” means the allocation of funds by the Government made
Allocation” through the budget, wherein all the government’s expenditure is reflected. Any
institution, irrespective of the fact that it is a Government Department, Semi-
Government or Quasi-Government Body, which receives grants, loans or subsidies
from the Government is said to depend on budgetary allocation.
Payment of interest In respect of a term deposit maturing for payment on a Sunday or a holiday or a
on term deposit non-business working day, the bank should pay interest at the originally contracted
maturing on rate on the deposit amount for the Sunday/holiday/non-business working day,
Sunday/holiday/non intervening between the date of the expiry of the specified term of the deposit and
-business working the date of payment of the proceeds of the deposit on the succeeding working day.

Scheduled Bank Net demand and time liabilities should be above Rs.100.00 crores as per RBI act
1934. Schedule II.
UCPDC 600 Implemented wef 01.07.2007.Rules framed by ICC (International Chamber of
Commerce) Paris, France.
Total 39 Articles are there in UCPDC 600 against 49 in UCPDC 500. Reasonable
time for acceptance or refusal of documents by a definite period of 5 banking days
Under UCPDC 600, if quantity is not specified to be exceeded or reduced, it should
not exceed the tolerance level of 5.00%.
N I Act Third party a/c payee cheques shall not be collected on behalf of Coop. Societies.
Protection under section 131 of N I Act is available to bankers only.
Second NRW Can be availed only after 5 years from availing first NRW.
Bearer Demand Can not be issued as per section 31 of RBI Act.
Safe Custody In single name- only one nominee allowed.
In Joint Name- Nomination facility not available. Use EoS facility. Relationship
between Banker and Customer in case of safe custody is Bailee- Bailer.
Lockers Single Name- One Nominee
Joint names EOS- Nomination not available.
Joint names joint operations- one or more nominations.
Safe Deposit Lockers are not available to Blind persons, Minors and Trust.
Deposit account If by mistake two nominees obtained for single deposit account, pay to both if
depositor dies as per Supreme Court Judgment.

Warehouse receipt Not Negotiable Instrument.
Demand Draft If original and duplicate DD presented in clearing on same day- Duplicate DD can
be paid and Origional to be returned with memo-“ Duplicate since issued and
Depreciation Rates Furniture- 10%
Equipments and Electrical Fittings- 15%
Motor Vehicles- Bicycles - 20%
Electronic Equipment & Security Gadgets -40%
Depreciation on Land- Nil
Method of charging Written Down Value (WDV)-Fixed percentage every year
Depreciation Amount of depreciation decreases every year in WDV method.
Straight Line Method (SLM)- Fixed amount every year.
Amount of depreciation is constant every year in SLM.
Pre mature The Finance Ministry has relaxed encashment norms for joint holder type term
withdrawal for Joint deposits under the Tax Saving Bank Term Deposit Scheme. In the event of the
Tax Saving Term death of the first holder, CBDT has allowed the joint holder to encash the term
Deposit. deposit before its maturity. Hitherto, the scheme did not permit any encashment of
term deposits before the expiry of five years.
Bankers Cheque Is not Negotiable Instrument.
Photo of Depositor Banks should obtain photographs in deposit accounts has been recommended by :
Ghosh Committee.
Minors Joint Two minors approach a bank to open a joint account. The account cannot be
account opened.
Banker’s right of set Can be exercised when debt must be due and in same capacity.
off Limitation only bars the legal remedy. However, it does not extinguish the right of
set off.

Initial deposit for Initial deposit for opening SB a/c should always be in cash to get the protection u/s
opening SB a/c 131 of NI Act to the collecting banker.
If Power of Cheques drawn by them prior to death must be paid.
Attorney holder or
Director of the
company reported
to be deceased
Cheques made Can be paid in cash only to the drawer.
payable like pay to
cash or order
Crossed cheques Cash should not be paid over the counter for crossed cheques except to the bankers.
Lien Right to retain goods and securities in the normal course of business.

Negative Lien Is an undertaking given by the borrower not to sell, mortgage or otherwise
encumber any particular property or assets with out prior consent of the bank.

Pre-mature Deposit should be continued to be held for a longer period than the remaining
Renewal of Term period of the original contract after allowing pre mature renewal of deposit.
Ship – Security Ship which is registered in India with Registrar of Shipping can be Mortgaged
creation under Merchant Shipping Act.

Advances against No advance against security of partly paid shares.

Shares Advances against primary security of shares should not be granted to Proprietary
Concerns, Partnership Firms and HUF.
Registering of our In case of Pledge of shares & Govt. Securities and Pledge of Goods, our charges
charges with ROC need not be required to be registered with ROC.
in case of advances
to the companies.
Death Claims Maximum 15 days time limit given for the banks to settle the claims in respect of a
deceased depositor and release payments to the survivors/nominees.
Red Clause LC Which provides for advance payment to beneficiary prior to shipment of goods for
purchasing raw material, processing and packing purpose.
NOSTRO A/C A/c maintained by a domestic bank with foreign bank in foreign currency. Our a/c
with you.

VOSTRO A/C A/c maintained foreign bank in inland bank in local currency. You’re a/c with us.

Revaluation of Increase in external value of currency.

Devaluation of Reduction in external value of currency.
Loan on LIC Policy No loans to be granted against Money Back Policy, an LIC policy u/s 6 of Married
Women's Property Act. Preferred policy for granting loans is Endowment Policy.

Minor Widow Girl The natural guardian of a minor widow girl is father and after father's death, her
QMD Overdraft facility up to 80% of the deposit.
Assignment When Debt is in the form of Actionable claim, the charge applicable is Assignment.

Certificate of Is required only in case of Public Ltd Company. But as per new Companies Bill
commencement of 2012, required for all the companies.
Muslim depositors No interest free deposit can be accepted other than by way of current account. Try
request not to pay to convince the Muslim depositor to invest the amount in the current account where
interest on their no interest is payable.
deposits as
Mohammedan Law
prohibits receipt of

General Ledger Are to be preserved permanently. It is permanent record.
Book, Indemnity
Bonds and Claim
Death of Trustee Branch shall act according to the provisions made in this regard in the trust deed.
Cheque signed by the trustee can be paid.
If there is dispute Pay to nominee only and obtain valid discharge from nominee. Legal heirs may be
between Nominee advised to approach court of Law to solve the dispute.
and legal heirs
regarding payment
of deposit after
death of depositor...
Basel III Guidelines Basel III measures aim to: improve the banking sector's ability to absorb shocks
arising from financial and economic stress, whatever the source improve risk
management and governance strengthen banks' transparency and disclosures.

The final guidelines on Basel III capital regulations would become effective from
April 1, 2013 in a phased manner. Implementation of the capital adequacy
guidelines on the Basel III capital regulations will began on 01-April-2013.

The Basel III capital ratios will be fully implemented as on March 31, 2018.
Capital Conservation Buffer: Another key feature of Basel III is that now banks
will be required to hold a capital conservation buffer of 2.5%.

Take out Finance Under this arrangement, the bank financing the infrastructure projects will have an
arrangement with any financial institution for transferring to the latter the
outstanding in respect of such financing in their books on a pre determined basis.

RAM software for A product of CRISIL, Credit Rating Information Services of India Ltd.
credit rating by our
Bank is
Student going Is also treated as NRI .
abroad for
education purpose.
Chelliah Committee Chelliah Committee of 1992 deals with the overhauling of our Tax System.

Revalidation of DD Can be done only once. Request of drawee can be considered

If Rs.10 lac HL is Housing Loan Sanctioned-Rs.10.00 lacs
sanctioned, how Say 50% Risk Weightage - Rs.5.00 lacs
much capital we Capital Adequacy at 9%
have to provide? 5,00,000 x 9 = 45,000/- capital is to be maintained.
(This is only example)
Maximum Spread Presently the maximum spread stipulated by the Bank over the Base Rate, is 5.25%
p.a. in respect of advances to Agriculture, Micro & Small Enterprises and 6.75%
p.a. on all other advances.
DRT / SARFAESI If a borrower wants to file an appeal with DRAT against the decision of DRT under
SARFAESI Act, 50% amount it will be required to deposit.

If a borrower wants to file an appeal with DRAT against the decision of DRT under
DRT Act, 75% amount it will be required to deposit.
Kite Flying Kite Flying is a bill is drawn without consideration by seller of goods on buyer of
Minimum Interest Minimum Interest: Interest shall be collected for a minimum period of 7 days if the
loan/OD is closed within 7 days subject to a minimum of Rs.10.00.
However, this rule is not applicable in the case of following transactions:
a) LD/ODD. d) BG/DGP/LC paid accounts.
b) Drawing against clearing effects. e) Export Finance.
c) Debit balance in SB and Current Accounts.

Open Interest Open Interest - In derivative trading open interest or OI Is the total number of
outstanding futures or options contracts in a market at a given point of time.
Immediate Credit of Up to Rs.15000/-
outstation cheques.
HUF The liability of a minor co-parcener in an HUF, for the acts of a Karta is to the
extent of his share in the family property.
Missing Person RBI has issued directives on 12.05.2008. As per section 107/108 of Indian
Evidence Act, if any person is missing continuously for 7 years, he can be declared
as Dead and claim can be settled accordingly. First FIR must be lodged and if
person is not traceable with in 7 yrs, relatives of the missing person can approach
Court and obtain order to that effect for settlement of their claim.
In respect of borrower, bankers can lodge FIR not as missing but Absconding
because after words borrower can not plead as he has not received notice or he has
not been informed.
Introduction Introducer is liable only if account holder is impersonate.
Clayton’s Rule Right of Appropriation. Appropriation of payments
SARFAESI Act 15 days time period under SARFAESI Act for replying to borrower if he raises
objection for possession of Assets.
FX Transactions Basic buying rate is TT buying rate.
Negative lien Loans granted on the basis of Negative Lien are treated as
a) Secured b) Unsecured c) Partly Secured d) None.
Ans - is b)
De- Duplication De- Duplication-Clubbing of many customer IDs of same customer into one single
Documentation Not to be collected in respect of Agriculture Advances.
Counterfeit notes Counterfeit notes should be preserved for a period of 3 years from the date of
receipt from the police authorities.

Counterfeit notes may thereafter be sent to concerned issue office of RBI with full

Counterfeit notes which are subject matter of litigation in the court of law, should
be preserved with the branch concerned for three years after conclusion of court

Investment Investment fluctuation reserve would be classified by a banks as Tier I capital fund
Fluctuation Reserve for the purpose of capital adequacy ratio.

Allonge’ refers to `allonge’ refers to A plain sheet appended to a negotiable instrument for the
purpose of making endorsement thereon.

Issue DDs, MTs Banks to issue DDs, MTs and TTs for Rs.50000 and above only by debit to
and TTs customers' account and not by accepting cash.

Documentation Loan agreement is executed but it is not stamped properly-

It can be stamped later on after payment of penalty as per provision of respective

State Stamp Acts and can be treated as a valid document, after obtaining
permission of the collector of stamps.
Articles of Borrowing power of Board of Directors is described in Articles of Association.

Usufructuary Mortgagee enjoys the income of the mortgaged property in case of Usufructuary
mortgage mortgage.

Off Balance Sheet Aggregate domestic off balance sheet exposures including forward contacts and
Exposures derivatives of the bank shall not exceed 12 times the capital funds of the bank.

Vetting of In case of fresh credit limits of Rs.1.00 crore and above, branches shall forward
Documents copies of the documents executed by the borrowers/guarantors to ROs for vetting.
Minority Jain Community is now classified as Minority Community.
CDR system As per the CDR system introduced by RBI, problem borrowal accounts under
multiple banking/syndication/consortium arrangement with outstanding fund based
and non fund based exposure of Rs.10 crore and above can be considered for
restructuring subject to fulfillment of the norms laid down.
Sweat Equity Sweat Equity is a new equity instrument which was floated in the Companies
(Amendment) ordinance 1998 (u/s 79A of the companies act 1956. It refers to the
shares issued at discount to the employees and directors and shares issued for
consideration other that cash for providing intellectual property rights, know how ,
value additions to the company or similar contributions.
Banking Customer can file his complaint before the Banking Ombudsman if the reply is not
Ombudsman received from the bank within a period of one month. The complaint should,
however, be made before expiry of period of one year after the cause of action has

If the award is acceptable to the complainant, he is required to send to the bank
concerned, a letter of acceptance of the award in full and final settlement of his
complaint, within a period of 15 days from the date of receipt of the copy of the
award by him.

The appellate authority is the Deputy Governor in the Reserve Bank of India.

Either party aggrieved by the award may, within 45 days of the date of receipt of
the award, appeal against the award before the appellate authority. The appellate
authority may, if he is satisfied that the applicant had sufficient cause for not
making an application for appeal within time, also allow a further period not
exceeding 30 days.

CRISIL CRISIL's leadership position continues with over a 70% share of the Indian ratings

CRISIL's majority shareholder is Standard & Poor's, the world's foremost provider
of independent credit ratings, indices, risk evaluation, investment research and data.

ICRA ICRA Limited (formerly Investment Information and Credit Rating Agency of
India Limited) was set up in 1991 by leading financial/investment institutions,
commercial banks and financial services companies as an independent and
professional Investment Information and Credit Rating Agency. The international
Credit Rating Agency Moody’s Investors Service is ICRA’s largest shareholder.
ICRA and its subsidiaries together form the ICRA Group of Companies (Group
ICRA). ICRA is a Public Limited Company, with its shares listed on the Bombay
Stock Exchange and the National Stock Exchange.

FITCH Fitch Ratings is a global rating agency committed to providing the world's credit
markets with independent and prospective credit opinions, research, and data.

Fitch Ratings is headquartered in New York and London and is part of the Fitch

CARE Credit Analysis & Research Ltd. (CARE Ratings) is a full service rating company
that offers a wide range of rating and grading services across sectors. CARE has an
unparallel depth of expertise. CARE Ratings methodologies are in line with the
best international practices.
CARE was promoted by major Banks/FIs (financial institutions) in India. The three
largest shareholders of CARE are IDBI Bank, Canara Bank and State Bank of
CIBIL The Credit Information Companies (Regulation) Act, 2005, and various Rules and
Regulations issued by Reserve Bank of India has empowered CIBIL or (Credit
Information Bureau (India) Ltd to collect the data from various types of credit

grantors (i.e. lenders). and then share the same within the group. The legislation
has enabled banks to submit data to CIBIL without obtaining borrower consent.
This has enabled CIBIL to tracks repayment history of bank customers loans,
credit cards and further banking finances. The access to this database is usually
available only to officials of banks.

At present CIBIL is maintaining the database of Suit-Filed accounts of Rs.1 Crore

and above and Suit-Filed accounts (willful defaulters) of Rs. 25 Lacs and
above. The establishment of CIBIL is an effort made by the Government of India
and the Reserve Bank of India to improve the functionality and stability of the
Indian financial system by containing NPAs while improving credit grantors’
portfolio quality. CIBIL provides a vital service, which allows its Members to
make informed, objective and faster credit decisions.

State Bank of India (SBI), Housing Development Finance Corporation Limited

(HDFC), Dun & Bradstreet Information Services India Private Limited (D&B) and
TransUnion International Inc. (TransUnion) signed Shareholders’ Agreement on
January 30, 2001, with a view to establish the Credit Information Bureau (India)
Limited (CIBIL). D&B and TransUnion, are also the technology partners and are
well-known in the credit information businesses worldwide.

Consumer Establishment of consumer disputes redressal forum at district level, state level
Protection Act and central levels known as “District Forum”, “State Commission” and “National

Court. District forum, State Commission or National Commission shall not

entertain any appeal filed after expiry of 2 years from the date on which the cause
of action has arisen. However, the forums have the power to condone the delay in
preferring appeals within such time limit if sufficient cause is shown for not filing
the appeal within the prescribed time limit. What is “sufficient cause” will depend
on the facts and circumstances of every particular case.
There is no fee for filing a complaint before the District Forum, the State
Commission or the National Commission.
Senior Citizens The cap on term deposits of Senior Citizens for getting the benefit of additional
interest of 0.50% will stand revised upward from less than Rs.1 crore’ to ‘less than
Rs.5 crore’.
Additional interest of 0.50% is not payable to Senior Citizens on domestic Term
Deposits of Rs.5 crore & above & minimum period of one year.

Minority GOI/RBI has set up a target of 15% State wise Minority Community lending under
Community over all Priority Sector Lending. Maximum Loan limit is not exceeding Rs.1.00
lacs per borrower & Rate of Interest shall be minus 0.50% of applicable rate subject
to the minimum of Base Rate.

Education Loan Interest Subsidy Scheme would be available to loans disbursed on or after
01.04.2009 (Amount sanctioned earlier but released after 01.04.2009 also to be
covered). Income criteria specified under the scheme for EWS is Rs.4.50 lacs p. a.
decided by Ministry of HRD.
Canara Bank has been nominated as Nodal Bank for implementation by Ministry of
Debit Balance in Interest at Base Rate plus 6.75% from the date of allowing debit balance up to the
CA/SB stipulated period of 30 days for SB and 15 days for current accounts and overdue
interest shall be added thereafter.
Banking Frauds A) Rs.3.00 Crore & above but below 15.00 Crore: Where staff involvement is prima
200-2012-BC facie evident: Report to CBI (Anti Corruption Branch)

Where staff involvement is prima facie not evident: Report to CBI Economic Offences

B) Rs.15.00 Crore and above:

Report to Banking Securities and Fraud Cell of the respective centre, which is the
specialized cell of the Economic Offences Wing of the CBI, for major bank fraud cases.

C) Less than Rs.3.00 Crore:

Report to Local police / State police.

Fraud cases to be referred to local police: Cases with amount involved less than 3.00 Crore.
1. Cases of financial frauds with value of 1.00 lakh and above which involve outsiders
(private parties) and bank staff, should be reported by the Regional Head of the Bank to a
senior officer of the State CID/Economic Offences Wing of the concerned state.
2. For cases of financial fraud below the value of 1.00 lakh but above 10,000, the cases
should be reported to the local police by the Bank branch concerned.
3. All fraud cases of value below 10,000, involving bank staff should be referred to the
Regional Head of the Bank, who would scrutinize each case and then direct the Bank
branch concerned on whether it should be reported to the local police for further action.

Penal Interest For credit limits not exceeding Rs.5000/- in case of general advances and not
exceeding Rs.25,000/- in case of priority sector advances penal interest for non
submission/delayed submission of stock statement, non submission/delayed
submission of renewal proposal and non submission/delayed submission of CCR
Forms shall not be charged.
Small Savings Interest rate on PPF has been decreased to 8.7% while a 10 year NSCs will fetch
Schemes 8.8% & 5 year NSCs will fetch 8.5% . The new rates will be effective from April 1,
2013 and no change in the savings deposit rate which has been retained at 4%.

In line with the recommendations of Shyamala Gopinath Committee, which had

suggested that returns should be in sync with market rates. Earlier, the government
had raised annual investment ceiling in PPF savings to Rs 1 lakh from Rs 70,000.

White-Label ATM Most automated teller machines (ATMs), or machines that dispense cash, are
owned by banks. But ones that are owned and operated by non-banking companies
are called while-label ATMs (WLAs). They function just the same way as any
other bank-run ATM.

Cross Selling Cross selling means offering more than one product to each customer. Cross selling
is just not product offering. It is building of relationship.

Cross selling can be for liability as well as asset products. Cross selling reduces
operational cost besides other benefits.

Restructured As per recent RBI Guidelines banks should henceforth disclose in their published
Accounts Annual Balance Sheets, under "Notes on Accounts", information relating to number
and amount of advances restructured, and the amount of diminution in the fair
value of the restructured advances.

Exposure to capital The aggregate exposure of the bank to the capital markets in all forms (both fund
market based and non fund based) should not exceed 40 per cent of its net worth as on
March 31 of the previous year.

Hot Money Money that is moved by its owner quickly from one form of investment to another,
as to take advantage of changing international exchange rates or gain high short-
term returns on investments.

Recovery Pension cannot be attached in execution of decree. If Judgment Debtor has gross
salary of Rs.10,000/-, maximum amount of attachment is Rs.3,000/-. During
auction of attached property, Bank can bid with the permission of the court.

Present Position - -

Bank Rate - Rate at which RBI purchases or rediscounts bills 7.75%

of exchange of commercial banks.

SLR- 21.50% wef 07.02.2015

CRR- is the percentage of deposit that banks must keep as 4.00% wef 09.02.2013
cash with RBI. By reducing CRR, RBI infuses liquidity in the
Banking system. Rate of interest payable by RBI on CRR
balances – Nil.

Repo Rate- this is the rate at which RBI adds fund to 6.75%
money market.

Reverse Repo Rate- this is the rate at which the RBI 5.75%
absorbs fund from money market.

Base Rate of our bank 9.70% wef 01.10.2015

SB Interest Rate- Wef 01.04.2010, SB interest payable on 4.00% wef 03.05.2011.

daily balances on half yearly basis.
i-e Sep & March. SB Interest Rate deregulated by RBI from

Marginal Standing Facility (MSF) -7.75% Banks permitted to avail themselves of

funds from the Reserve Bank on overnight
basis under Marginal Standing Facility
(MSF), against their excess SLR holdings.

Base Rates concept is Introduced as per directions of RBI, in

order to bring the transparency in the
pricing of lending products.

Pricing = Base Rate + Risk Premium (Spread) Or PLR + Risk Premium (Spread)

PLR at 13.95% wef 01.10.2015 Cost of funds + operational expenses +

provisions + capital charge + spread

Base Rate implemented (wef 01.07.2010) Bank can not lend below Base Rate.

Priority Sector Advances -

Categories under priority sector-

(i) Agriculture
(ii) Micro, Small and Medium Enterprises
(iii) Export Credit
(iv) Education
(v) Housing
(vi) Social Infrastructure
(vii) Renewable Energy
(viii) Others

Agriculture sector is now classified into following 3 sub-sectors (which was hitherto classified
as Direct and Indirect Agriculture)
i) Farm Credit
ii) Agriculture Infrastructure and
iii) Ancillary activities.

Farmers with landholding of up to 1 hectare are considered as Marginal Farmers. Farmers

with a landholding of more than 1 hectare and upto 2 hectares are considered as Small

Small and Marginal Farmers: A target of 8 percent of ANBC or Credit equivalent amount of
Off-Balance Sheet Exposure, whichever is higher, has been prescribed for Small and Marginal
Farmers within agriculture

Construction of storage facilities/Cold Storage Units: Loans for construction of storage

facilities (warehouses, market yards, godowns and silos) including Cold Storage Units/Cold
Storage chains designed to store agriculture produce/products, irrespective of their location up
to 100 Crores will form part of Agriculture.

Medium Enterprises, Social Infrastructure and Renewable Energy will form part of Priority

Sr. No. Category Targets

1 Total Priority 40 percent of Adjusted Net Bank Credit [(ANBC) defined in
Sector sub paragraph (iii)] or Credit Equivalent Amount of Off-
Balance Sheet Exposure, whichever is higher.
2 Agriculture 18 percent of ANBC or Credit Equivalent Amount of Off-
Balance Sheet Exposure, whichever is higher. Within the 18
percent target for agriculture, a target of 8 percent of ANBC
or Credit Equivalent Amount of Off- Balance Sheet Exposure,
whichever is higher is prescribed for Small and Marginal
Farmers, to be achieved in a phased manner i.e., 7 per cent by
March 2016 and 8 per cent by March 2017.

3 Micro 7.5 percent of ANBC or Credit Equivalent Amount of Off-
Enterprises Balance Sheet Exposure, whichever is higher to be achieved
in a phased manner i.e. 7 per cent by March 2016 and 7.5 per
cent by March 2017.
4 Advances to 10 percent of ANBC or Credit Equivalent Amount of Off-
Weaker Sections Balance Sheet Exposure, whichever is higher.
5 DRI Advances 1.0% of previous year‘s total credit

6 Advances to women 5.0% of Adjusted Net Bank Credit


Priority Sector Advances-

-The Export Credit extended as per the details below would be classified as priority sector.
Incremental export credit over Corresponding date of the preceding year, up to 2 percent of
ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher,
effective from April 1, 2015 subject to a sanctioned limit of 25 crore per borrower to units
having turnover of up to 100 crore.

-Loans to individuals for educational purposes including vocational courses up to 10 lakh

irrespective of the sanctioned amount will be considered as eligible for priority sector.

-Loans to individuals up to 28 lakh in metropolitan centres (with population of ten lakh and
above) and loans up to 20 lakh in other centres for purchase/construction of a dwelling unit per
family provided the overall cost of the dwelling unit in the metropolitan centre and at other
centres should not exceed 35 lakh and 25 lakh respectively. The housing loans to banks‟ own
employees will be excluded. As housing loans which are backed by long term bonds are
exempted from ANBC, banks should either include such housing loans to individuals up to 28
lakh in metropolitan centres and 20 lakh in other centres under priority sector or take benefit of
exemption from ANBC, but not both.

Loans for repairs to damaged dwelling units of families up to 5 lakh in metropolitan centres
and up to 2 lakh in other centres will be considered as eligible for priority sector.

Bank loans to any governmental agency for construction of dwelling units or for slum clearance
and rehabilitation of slum dwellers subject to a ceiling of 10 lakh per dwelling unit will be
considered as eligible for priority sector.

The loans sanctioned by banks for housing projects exclusively for the purpose of construction of
houses for economically weaker sections and low income groups, the total cost of which does not
exceed 10 lakh per dwelling unit. For the purpose of identifying the economically weaker
sections and low income groups, the family income limit of 2 lakh per annum, irrespective of
the location, is prescribed.

Bank loans to Housing Finance Companies (HFCs), approved by NHB for their refinance, for
on-lending for the purpose of purchase/construction/reconstruction of individual dwelling units
or for slum clearance and rehabilitation of slum dwellers, subject to an aggregate loan limit of
10 lakh per borrower. The eligibility under priority sector loans to HFCs is restricted to five
percent of the individual bank‟s total priority sector lending, on an ongoing basis.

Outstanding deposits with NHB on account of priority sector shortfall will be considered as
eligible for priority sector.

Social infrastructure-Bank loans up to a limit of 5 crore per borrower for building social
infrastructure activities namely schools, health care facilities, drinking water facilities and
sanitation facilities in Tier II to Tier VI centres will be considered as eligible for priority sector.

Renewable Energy -Bank loans up to a limit of 15 crore to borrowers for purposes like solar
based power generators, biomass based power generators, wind mills, micro-hydel plants and for
non-conventional energy based public utilities viz. street lighting systems, and remote village
electrification. For individual households, the loan limit will be 10 lakh per borrower.

Others -Overdrafts extended by banks up to 5,000/- under Pradhan Mantri Jan-DhanYojana

(PMJDY) accounts provided the borrowers household annual income does not exceed 100,000/-
for rural areas and 1,60,000/- for non-rural areas will be considered as eligible for priority sector.


Priority sector loans to the following borrowers will be considered under Weaker Sections

1. Small and Marginal Farmers

2. Artisans, village and cottage industries where individual credit limits do not Exceed Rs.
1 lakh
3. Beneficiaries under Government Sponsored Schemes such as National Rural Livelihoods
Mission (NRLM), National Urban Livelihood Mission (NULM) and Self Employment
Scheme for Rehabilitation of Manual Scavengers (SRMS)
4. Scheduled Castes and Scheduled Tribes
5. Beneficiaries of Differential Rate of Interest (DRI) scheme
6. Self Help Groups
7. Distressed farmers indebted to non-institutional lenders
8. Distressed persons other than farmers, with loan amount not exceeding 1 lakh per borrower
to prepay their debt to non-institutional lenders
9. Individual women beneficiaries up to 1 lakh per borrower
10. Persons with disabilities
11. Overdrafts upto 5,000/- under Pradhan Mantri Jan-DhanYojana (PMJDY) accounts,
provided the borrowers‟ household annual income does not exceed 100,000/- for rural
areas and 1,60,000/- for non-rural areas
12. Minority communities as may be notified by Government of India from time to time

Time Limit for disposal of Loan Applications-

All loan applications up to a credit limit of 25,000/- should be disposed of within a fortnight and
those for over 25,000, within 8 to 9 weeks.

All loan applications for Micro and Small Enterprises up to a credit limit of 25,000/- should be
disposed of within 2 weeks, above 25,000/- to 5.00 lakh within 4 weeks and above 5 lakh within
8 to 9 weeks, provided the loan applications are complete in all respects and are accompanied by
a 'check list'.

In the case of proposals from SC/ST, rejection should be at a level higher than that of Branch

No education loan is to be rejected by the Branch Managers without concurrence of next higher

No penal interest should be charged for loans under priority sector upto 25,000/-.

No loan related and adhoc service charges / inspection charges shall be charged on priority sector
loans up to 25,000/-.

No processing charges to be levied for Micro and Small Enterprises for loans upto 5.00 lakh.

Loans extended to Micro, Small and Medium Enterprises(MSME) as per the definition under
manufacturing sector irrespective of the loan amount shall be treated as priority sector.

Loans upto 5.00 crore per borrower / unit to Micro and Small Enterprises and 10.00 crores to
Medium Enterprises engaged in providing or rendering of services and defined in terms of
investment in equipment under MSMED Act 2006 are eligible to be classified under Priority

Short fall if any in meeting the target under PSA or Agriculture Advances to be deposited in
Rural Infrastructure Development Fund RIDF (NABARD) by the banks.

Balance sheet Analysis- (With solved problems).

Standard format of the balance sheet to be remembered for solving the various problems
related to Balance Sheet Analysis.

Sources of Fund Liabilities Assets Uses of Fund

Capital Fixed Assets Long term uses of
Long term sources of fund
fund Reserves

Term Liability (B)

Investment or NCA
Current Assets ( D) Short term uses of
Short term sources of Current Liability (C) funds
Total Liabilities Total Assets

Current Assets can be created out of short term sources and partly out of long term sources of

TOTAL ASSETS = TOTAL LIABILITIES ( always use while solving problems )

Current Ratio = Current Assets Please refer to D in the above balance sheet
Current Liability C

Gross Working Capital = Current Assets ( D)

Net Working Capital = Current Assets - Current Liability = D - C= NWC

Capital + Reserves = Own Funds or Net worth

Capital + Reserves less intangibles = Tangible Net worth =A

Debt Equity Ratio = Long Term Debts = B

Tangible Net Worth A

Total Outside liabilities = Term Liability (B) + Current Liability (C)

TOL/TNW = Total Outside liabilities = Term Liability (B) + Current Liability (C)
Tangible Net Worth Tangible Net Worth (A)

DSCR Denotes repaying capacity of the borrower can be calculated
as follows.
Net Profit + Depreciation + Interest on term loan
Term loan installments + Interest on term loan
How Term Loan is to be serviced out of projected cash flow
of the company.
Debt Equity Ratio Denotes Promoters contribution or Margin in the project
Long Term Debts
DER = Tangible Net Worth

Break Even Point Where there is no profit and no loss. Beyond this point unit
starts earning profits.

Cash Loss Cash Loss is loss before depreciation

Net Loss Net Loss is loss after depreciation

Cash generation is Net profit plus depreciation

Intangible Assets Goodwill, preliminary expenses, earlier period losses.

Working Capital Gap Current Assets less Current liabilities excluding bank
Pre paid expenses-- -- Classified as Current Asset (CA)
Outstanding Charges-- -- Current Liability (CL)

Pre-operative or Classified as Intangible assets or Factitious Assets

Preliminary expenses
Contingent liabilities are Foot note to the balance sheet. Contingent liabilities are not
shown in the balance sheet part of balance sheet. Acceptances, endorsements and
as guarantees are shown as contingent liabilities.
Accumulated losses are Assets Side of the Balance Sheet of the company.
appearing in the balance
sheet of the company as
If Bonus shares are issued Current Ratio. 2) Solvency Ratio. 3) DSCR
by the company, which of 4) Debt Equity Ratio 5) None
the following ratio will be Answer- 5) None.
changed. Bonus shares are issued out of accumulated Reserves and not
from Revaluation Reserves.

Current Ratio implies : Liquidity position. Capacity of the firm to repay or liquidate
the current liabilities.

Margin requirement on 40% For Medium Enterprises. However, margin at 30% in

second hand machinery. case of Micro & Small Enterprises.

C R is 3:1 & CA is 30, that Current ratio of a unit is 3:1 and quick ratio is 1:1. The level
means CL is 10. As Quick of current assets is Rs.30 lac. What is the amount of quick
Ratio is 1:1, Quick Assets assets? Current Liabilities are common here.
are also 10 lacs only. Answer is Rs.10.00 Lacs. ( it means stock of Rs.20 lacs)

Balance sheet analysis If DER is 2:1, CL are 40 and Total Assets are 100, what are
the Term Liabilities?
1) 80 2) 60 3) 40 4) 20 5) None Ans- 3)

Calculation of TNW Authorised capital is Rs.10 lac, issued capital is Rs.8.00 lacs
(Take only paid up capital) and Paid up capital Rs.6 lac. The loss of previous year is Rs.1
lac. Loss in current year is Rs.2 lac. The tangible networth is :
= 6 - (1+2 )= Rs.3 lacs .
NWC = CA-CL Suppose Current Ratio is 4:1 & Current Assets are 40000,
what is NWC?
As CR is 4:1 and CA is 40000, CL can be 10000
NWC = CA-CL i-e 40000( - ) 10000 = 30,000.

Current Ratio What should be the current ratio if NWC is Nil

Current ratio will be 1:1 i-e Current assets equals to Current
Liabilities. Therefore CA less CL = 0

Net working capital is CA-CL=80000 & CA/CL=3 i-e CA=3 CL

Rs.80000. Current ratio is 3CL- CL = 80000 i-e 2CL = 80000 & CL = 40000
3:1. The current assets are When CA=3CL, CA= 3 x 40000 = 1,20,000
If the net worth of the Total Assets= FA 500+ CA 300 + Investment 300 =1100
business is Rs.500, fixed Total Liabilities=500 + CL nil + amount of claim to outsiders
assets are Rs. 500, current = 1100
assets Rs.300, investments Therefore , answer is 600. Please broadly remember.
Rs.300, current liabilities Assets = FA + CA + NCA (Investment) + Accumulated
Rs. Nil, what is the amount Lossess if any.
of claim to outsiders? Liability = Capital + Reserves + TL + CL & Provisions

Cash profit is equal to Net profit before Depreciation.

Break Even Point Total Fixed Cost

Unit sale price – Unit variable cost .

Example of BEP A manufacturer sells his product at Rs.30 each. Fixed cost is
Rs. 5000 and the variable cost is Rs.10 each. Calculate the
Break Even Point.

5000 = 5000 = 250

30-10 20

Equity Share Capital Is permanent source of finance.

Negative NWC Means current liabilities are more than current assets.

Quasi Capital Funds infused by Directors/Share holders/Relatives of long

term nature can be considered as part of Net Worth if the
same is not withdrawable during the tenure of loan.

Investment in partly paid Shares is to be considered as Contingent Liability.

IRR Internal Rate of Return is that discount rate at which project

Net Present Value (NPV) is zero.

Goodwill Is intangible asset as per Indian Accounting Standards.

Live stock Is fixed asset for the company.

Gold is treated as Investment whereas Silver is treated as other assets.

Present value Future amount Multiplied by Discount Factor.

Yield to Maturity (YTM) is that discount rate at which all future cash flows equal to
present market value.

Overvaluing the inventory Window dressing of current ratio is possible by this mode.

Projected Turn Over

Method for Assessment of Working capital requirement of MSE units up to Rs.5.00
Working Capital crores = 20% of projected turnover.
Please refer 336/2014/BC.

Holistic Method It is a Simplified method in case of a borrowers seeking fund

based working capital limits of less than Rs.25 lakh
Working capital requirement = 125% of value of security.

Regulatory Exposure 15% of Bank’s Capital for single borrower and 40% for group
Ceiling borrowers.

Long Term uses = Fixed The balance sheet of a firm has shown total assets of Rs.40
Assets.FA+CA=40&FA=22, lacs. The long term uses are Rs.22 lacs and the current ratio is
i-e CA=18 & as CR is 1.50, 1.5:1. What is the amount of current liabilities? Answer is
CL can be worked out = 12 Rs.12.00 lacs.

Dividend are usually paid on Paid up capital of the company.

Solvency Certificate Should be issued only to the extent of Tangible Net Worth of
Individual or Organization.

Please try to solve this Mr. A commenced his business on 1st April, 2009 with Capital
problem by using balance of Rs.1,00,000. He did good business during the year and
sheet format ( by totaling earned handsome profit. At the end of 31st March, 2010, his
assets & liability side). financial position was: Fixed Assets Rs.1, 20,000 and bank
However, answer is given balance of Rs.33000 and Creditors Rs. 17000. What was his
for cross checking. net profit for the year 09-10?
Net Profit for the year 2009-10 was Rs.36,000/-

A new company cannot issue shares----- at discount.

Quick Ratio = CA-Stock A firm has quick ratio of 1.5:1 with current liabilities at
CL Rs.200.00. It’s current assets being Rs.350, what will be the
350–Stock =1.50, amount of stocks/inventories if there are no prepaid expenses
200 or loans or advances in the current assets.
Therefore Stock = 50 (Answer is 50)

What does a high current More of stock.Quick Ratio = C A-Stock & C R = CA

ratio with low quick ratio CL CL
indicate? Disproportionately high investment in stocks.

Debt equity ratio is 2:1 and Total Assets =20 = FA 8 + CA, therefore CA = 12
owned funds is Rs.4 lacs. Total liabilities =20 as Assets equal to Liabilities as above.
Amount of total assets is
Rs.20 lacs. What is the Own funds are 4 and debt is double the amount of own funds .
current ratio if the fixed Total liabilities =20 = 4 + 8 + CL , therefore CL= 8
assets are of Rs.8 lacs?
Current Ratio = CA/CL= 12/8 = 1.50:1.

Depreciation A fixed portion of fixed assets is written off every year by

way of Depreciation.
Maximum permissible The Tandon Working Group introduced the concept.
Bank Finance (MPBF)
Current Assets High Current Assets couples with low quick ratio is an
indicator of High Inventory. Very high current ratio also
indicates position of more long term funds than required.

Book Debts Realization of Book Debts will not affect current ratio of the
company. Book Debts are only converted in to cash & cash is
also classified as current asset.
Bonus Shares If bonus shares issued by the company, its TNW & DER will
not change.

Hypothecation is Section 2 of SARFAESI Act.
defined in Possession with the borrower and ownership with bank. Hypothecation
can be converted in to pledge.

Mortgage Defined in Section 58 of Transfer of Property Act.

Pledge Defined in Section 172 of Contract Act.

Bailment of goods is Pledge. Possession as well as ownership with the


Lien Defined in Section 171 of Contract Act

Bailment Defined in Section 148 of Contract Act
Indemnity Defined in Section 124 of Contract Act
Guarantee Defined in Section 126 of Contract Act
Negotiable Section 26 regarding minors
Instrument Act- Section 85 protection to paying bankers
1881 Section 131 protection to collecting bankers
Section 138 bouncing of cheques
Section 25 declaration of holidays under NI Act by State Govt.

Consumer Quasi –Judicial Authority to provide speedy and simple redressal to

Protection Act 1986 consumer dispute.

Time barred debt As per section 25 (3) of Indian Contract Act after obtaining ASD-19
can be revived along with ASD-1(DPN).

Under stamped Can not be ratified as per Indian Stamp Act 1899. They are invalid if
DPN, AOD and they are under stamped.
Usance Bill of

Cash Reserve Ratio Maintained with RBI as per Section 42 of RBI Act 1934.
(CRR) Interest payable on CRR balances- Nil.

Statutory Liquidity Maintained with RBI as per section 24 of Banking Regulation Act
Ratio (SLR) 1949. Cash in hand is counted for SLR.

Stapling of RBI has prohibited stapling of currency notes by a directive issued

currency notes under Section 35 A of B R Act.1949.

Nomination defined In Section 45 Z of Banking Regulation Act 1949.

Sec 19(2) of Banks cannot hold shares in a company beyond 30% of company's
Banking Regulation paid-up capital or 30% of bank's paid-up capital plus reserves
Act-1949. whichever is less.

Section 20(1) of BR Section 20(1) of BR Act, banks cannot grant loans against its own
Act 1949 shares.

Garnishee Order is Civil Procedure Code.

issued under

Right to issue u/s section 22 of RBI Act 1934

currency notes
Minors defined u/s 3 of Indian Majority Act 1875
18 years , court defined 21 years

Branch License Banking Regulation Act 1949 u/s 22 allows RBI to issue of license for

Under Bankers The terms ‘ Judge’ refers to ‘ Judge of High Court’

Book Evidence Act

DRT Bank employee committed fraud resulting in recovery of Rs.20.00 lacs.

The amount is not treated as ‘ Debt’ and recovery through the DRT is
not possible.

Registration As per the provisions of the Registration Act,1908, a registered

Act,1908 document operates, not from the date of its registration , but from the
time of its execution. Thus a Mortgage document executed earlier,
though registered later than another, has priority over the documents
executed later.

Mortgages The limitation period for filing a suit for sale of mortgaged property is
12 years from the date the mortgage debt becomes due.
The limitation period for filing suit for foreclosure is 30 years from the
date the money secured by mortgage becomes due.

Unclaimed Deposit As per the provisions of the Banking Regulation Act, a banking
company to file within 30 days of the close of each financial year a
return of unclaimed deposits.

Tractor Loan Estimated yearly use (EOU) should be minimum 1000 hours, then
only tractor loan proposal can be considered as economically
viable. Tractor Loan is repayable in Minimum 5 years and
maximum 9 years.
Poultry Farming Debecking and layer farming (production of eggs) terms are used.
Broilers used for meat purpose and Layers for egg production.
Minor Irrigation White area- water utilized below 65% - Go ahead for financing.
(New Wells) Gray area- water utilized 65-85 % - caution for financing.
Dark area- water utilized above 85% - no finance to be granted.
200 Meter Minimum distance between two dug wells to be maintained and
verified while financing to new dug wells.
Crop Loan/ SKCC Scale of finance for Crop Loan/ SKCC is decided by District
Consultative Committee (DCC) which is also called District
Technical Committee.
Lactation period Cow-300 days
( Milking) Buffeloes-280 days.
Dry days Cow-60 days
Buffeloes-120 days.
Breeds of Cow Exotic Breeds-Holstein, Brownswiss,Jersy.
Indigenous Breeds- Tharparkar, Gir, Sahiwal, Red Sindhi.
Breeds of Buffaloes Mehsana, Jafarabadi,Pandharpuri,Surati, Nagpuri and Murrah,
CACP Commission for Agricultural Cost and Pricing declares minimum
support prices of agri commodities and Central Govt. procures agri
commodities at MSP.
Produce Marketing Repayable in period not exceeding 12 months. No Limit but for
Loan Scheme classification of PSA, Loans up to Rs.50 Lacs are eligible.
Gobar Gas Produces “Methane” gas.
Apiculture Apiculture relates to : Bee-keeping
Sericulture Silk Production. Cultivation of Silk worms is called Sericulture.
Power Tiller One Power Tiller can replace at least 8 pairs of work animals.
LAMPS Large Sized Multipurpose Primary Society.
NABARD National Agricultural Bank for Rural Development. Has celebrated
recently its Silver Jubilee.
UNIT Cost Region wise Unit costs in respect of Agriculture and allied activities
(except crop loan/ SKCC) are approved by NABARD.
Mixed Farming Mixed Farming means Undertaking cultivation and allied activities.
Agariculture Agariculture is the study of herbs.
Small farmer Small farmer is one , who has land holding above 1.25 acres
with maximum of 2.5 acres in irrigated area or above 2.5 acres
with maximum 5.00 acres in non irrigated area.

Marginal Farmer Marginal Farmer is one who has land holding upto 1.25 acres
in irrigated area or 2.5 acres in non irrigated area.
Power Tiller Estimated yearly use (EOU) should be minimum 600 hours, then
only power tiller loan proposal can be considered as economically
Vermiculture Rearing of earth worms for preparing organic manure from
farm waste.
Organifarming Farming without use of pesticides and chemicals and by using
organic inputs such as bio fertilizers.
Gobar Gas Maximum size 25 cubic meter. Requires cow dung of 450 kg.
Minimum size 2 cubic meter. Requires cow dung of 40 kg.
Proportion of dung and water should be 4:5.
Agricultural Advance Loans to small and marginal farmers for purchase of land for
agricultural purposes is to be classified as Direct Agricultural
Advance .
BIS Standards For financing a pump set, BIS standards will be taken into account
No Dues Certificate No dues certificate in case of agricultural advances is exempted up
to a loan of Rs.50000/-

Parameters While processing big Agri proposals, following parameters shall be

complied with.
Benefit – Cost Ratio should be more than one.
IRR should be more than lending rate.
Net Present Value should be positive.

SKCC No Maximum limit & valid for 5 years.

T M Bhasin Working Group on Electronic Kisan Credit Cards- T M Bhasin.
Jatropha In recent times Jatropha (Jatropha curcas L.) has received much
attention as a source of renewable oil for the production of
sustainable and affordable bio-fuels.

Shivraman Committee On the recommendation of committee was NABARD established

Financial Inclusion ‘Swabhiman’, the financial inclusion scheme, comes under the
purview of Finance Ministry.

Food Grains Food Grain production estimated by Ministry of Agriculture for FY

2014-15 - 257.10 Million Tones.

CFMTTI The Central Farm Machinery Training and Testing Institute

(CFMTTI), Budni, M.P issues test certificate for various makes of
the tractor. The maximum repayment period is 9 yrs as the usual
life of a tractor is 10,000 hrs.

Important Agriculture activities-

1)Aquaculture- Shrimp/Prawn farming

2)Apriculture- Mushroom cultivation
3)Apiculture- Bee keeping
4)Floriculture- Flower production
5)Horticulture- vegetable,fruits,flowers
6)Olericulture- Vegetable production
7)Moriculture- Mulberry cultivation
8)Pisciculture- Fish farming
9)Sylviculture- Forest tree cultivation
10)Vermiculture- Rearing of Earthworm
11)Sericulture- Silk Production
12)Tissue Culture- Plant propagation

Important Revolutions in India:

1)Blue- Fish production

2)Green- Food production
3)Red- Meat production
4)Yellow- Oil seeds production
5)Black- Rubber production
6)Brown- Cocoa production
7)Rainbow- Flower production
8)White- Milk production

Ground Water Availability:

a) White Blocks- exploitation of ground water is less than 66% of the available water.
b) Grey Blocks - 66% to 85% of the available water has already been exploited.
c) Dark Blocks – More than 85% of the available water is already over-exploited.

Spacing norms for wells :

a) Between two dug wells – 180 meters

b) Between two dug wells with pump sets – 180 meters
c) Between two bore wells with pump sets –250 meters
d) Between a dug well and a bore well –215 meters

SELF HELP GROUPs: Recommended by Kalia Committee.

-A voluntary association of 10-20 persons with common interest to improve their economic and
social status. The minimum number of members in an SHG may be reduced to 5 in case of
difficult areas, disabled persons and minor irrigation schemes. The concept of weaker sections
was evolved by Ghosh Committee. A bank will be eligible for 100% refinance by NABARD.
Concept of Self Help Groups originated from Bangladesh.

Service Area Approach had been recommended by the Ojha Committee in 1989. Now it is
applicable to Government sponsored schemes only.


Objective: To help farmers avoid distress sale of their produce. To offer the facility of loan
against the stocks stored in farm houses, in addition to loan against warehouse receipts.

Eligibility: Farmers who have availed crop production loans from the branch or from other Bank
or who have not availed crop loan from any Bank.

Loan up to Rs.50.00 lac given to the eligible farmer can be classified as “ Agriculture Finance”
under Priority Sector Advance.


Objectives: To augment flow of credit to tenant farmers cultivating land either as oral lessees or
sharecroppers and small farmers who do not have proper title of their land holding through
formation and financing of JLGs. An informal group compromising preferably 4 to 10
individuals (may be considered upto 20) engaged in similar economic activity like crop
production, coming together for purpose of availing bank loan either singly or through group
mechanism against mutual guarantee. Purpose of loan: crop production, consumption, marketing
and other productive needs.

Syndicate Kisan Credit Card-

a)SKCC limit Up to Rs.2.00 lakh-

a) Hypothecation of crops
b) Charge on land wherever State acts provide for creation of charge on lands
c) Third party guarantee need not be insisted

b)SKCC limit above Rs.2.00 lakh-

a) Hypothecation of crops
b) Mortgage of land
c) Third party guarantee need not be insisted

c)SKCC limit Up to 3.00 lakh, in case of tie-up arrangements (with sugar factory, Tobacco Board

a) Hypothecation of crops
b) No mortgage of land
c) Third party guarantee acceptable to the Bank

While granting limits under SKCC, the scale of finance, is prepared by District Level Technical
Committee (DLTC)

While granting limits under SKCC, the scale of finance, is approved by District Consultative

While financing SKCC/Crop Loan by adopting scale of finance (SOF) no separate margins are

Agriculture Contributes to around 14% percent of the GDP providing employment to nearly 60
percent of the population

Agriculture sector is now classified into following 3 sub-sectors (which was hitherto classified
as Direct and Indirect Agriculture)

i) Farm Credit
ii) Agriculture Infrastructure and
iii) Ancillary activities.

Foreign Exchange-

Holiday: Holidaying abroad may require spending in foreign currency for hotel accommodation,
tour arrangements, shopping, etc. Under this category, an individual is allowed to draw foreign
exchange up to $10,000 in a year for one or more private visits abroad.

Business trip: If you are going abroad for business travel, attending conference or specialised
training, you can apply to your bank for release of foreign exchange up to $25,000.

Employment: RBI has allowed drawing foreign exchange up to $100,000 for taking up
employment abroad.

Education: You can draw up to $100,000 equivalent per academic year for studying abroad.
Studying abroad covers all expenses relating to education including admission fee, tuition fee
and purchase of study material. However, if you require funds in excess of $100,000, you need to
produce an estimate from the institute you intend to study to the concerned bank.

Medical treatment: An individual willing to travel abroad for getting medical treatment is
allowed to withdraw foreign exchange up to $100,000 based on self-declaration of essential
details without providing any estimate from a doctor or hospital. However, if the individual
wishes to take money over the prescribed limit, s/he will have to provide an estimate from a
hospital or doctor. In addition, a maintenance expense of up to $25,000 is allowed.

Emigration facilities: RBI has allowed drawal of foreign exchange for emigration facilities up
to $100,000 based on self-declaration or an amount prescribed by the country of emigration.

Liberalised Remittance Scheme (LRS): In addition to these limits there is a scheme known as
Liberalised Remittance Scheme in force since 2004 which allows resident individuals to draw
foreign exchange up to a specified limit. The remittance limits under LRS keep changing and
under the present limit an individual can draw up to $250,000 per year for the transaction
permissible under the scheme. Under this scheme, an individual can freely acquire and hold
shares, debentures, units of mutual funds, venture capital funds, unrated debt securities,
promissory notes or any other instrument of like nature. Further, the resident can invest in such
securities out of the bank account opened abroad under the Scheme. He can also set up a
company, enter into joint venture or buy immovable properties abroad provided the law of the
host country allows such transactions. Apart from the above, this scheme allows an individual to
make remittance as gift or loan to his relative abroad who is a non-resident Indian i.e. an Indian
Citizen who resides outside India. Further, where an individual has availed of a loan at a time
when he was non-resident, he can take the benefit of this scheme to make remittance for
repayment of loans.

Exchange Earners' Foreign Currency Account (EEFC): The balance in this account
represents earnings in foreign exchange and can be utilised towards current and capital account
transactions like private visits, business visits, purchase of property, and payment of custom
duty. There is no restriction on withdrawal in rupees of funds held in an EEFC account.
However, the amount withdrawn in rupees shall not be eligible for conversion into foreign
currency and for re-credit to the account.

Resident Foreign Currency Account: An individual can open, hold and maintain with a bank
in India a Foreign Currency Account, known as a Resident Foreign Currency (RFC) Account,
out of foreign exchange received as pension, gift, proceeds from sale of property outside India,
maturity proceeds of insurance policy, etc. The funds in this account are free from all restrictions
towards utilisation including investments.

Resident Foreign Currency (Domestic) Account: Resident individuals have another option by
opening and operating an account with a bank known as Resident Foreign Currency (Domestic)
Account. The credits in this account are allowed to be out of foreign exchange acquired in the
form of currency notes, bank notes and travellers' cheques while on a visit to any place outside
India by way of payment for services, gift from close relatives or unspent amount of foreign
exchange acquired for travel abroad. The balance held in this account can be utilised for
permissible current and capital account transactions like private visits, business visits, and
purchase of property.

Documentation: RBI has not prescribed any documents except self-declaration satisfying the
banker that the foreign exchange will be utilised only for the transaction for which request to the
banker for the release of foreign exchange is made and Form A2.

Current Financial Awareness -

Key Features of Budget 2015-2016-

GDP growth in 2015-16, projected to be between 8 to 8.5%.

Financial Inclusion - 12.5 crores families financially mainstreamed in 100 days.

CPI inflation projected at 5% by the end of the year, consequently, easing of monetary policy

Housing for all - 2 crore houses in Urban areas and 4 crore houses in Rural areas

Electrification of the remaining 20,000 villages including off-grid Solar Power- by 2020

To make India, the manufacturing hub of the World through Skill India and the Make in India

Government firm on journey to achieve fiscal target of 3% of GDP.

Rs.25,000 crore in 2015-16 to the corpus of Rural Infrastructure Development Fund (RIDF) set
up in NABARD.

Target of Rs.8.5 lakh crore of Agricultural Credit during the year 2015-16.

Micro Units Development Refinance Agency (MUDRA) Bank, with a corpus of Rs.20,000
crores, and credit guarantee corpus of Rs.3,000 crores to be created.

NBFCs registered with RBI and having asset size of Rs.500 crore and above may be considered
for notifications as ‘Financial Institution’ in terms of the SARFAESI Act, 2002.

Pradhan Mantri Suraksha Bima Yojna to cover accidental death risk of Rs.2 Lakh for a premium
of just Rs.12 per year.

Pradhan Mantri Jeevan Jyoti Bima Yojana to cover both natural and accidental death risk of Rs.2
lakh at premium of Rs.330 per year for the age group of 18-50.

Atal Pension Yojana to provide a defined pension, depending on the contribution and the period
of contribution. Government to contribute 50% of the beneficiaries’ premium limited to Rs.1,000
each year, for five years, in the new accounts opened before 31st December 2015.

National Investment and Infrastructure Fund (NIIF), to be established with an annual flow of
Rs.20,000 crores to it.

Forward Markets commission ( now attached to Fin Ministry) to be merged with SEBI.

Foreign Trade Policy (FTP)-2015 to 2020-
-Increase exports to $900 billion by 2019-20, from $466 billion in 2013-14.

-Raise India's share in world exports from 2% to 3.5%.

-Merchandise Export from India Scheme (MEIS) and Service Exports from India Scheme (SEIS)

-Higher level of rewards under MEIS for export items with High domestic content and value

-Incentives extended to units located in SEZs.

-Export obligation under EPCG scheme reduced to 75% to promote domestic capital goods

-FTP to be aligned to Make in India, Digital India and Skills India initiatives.

-Duty credit scrips made freely transferable and usable for payment of custom duty, excise duty
and service tax.

-Export promotion mission to take on board State Governments

-Unlike annual reviews, FTP will be reviewed after two-and-Half years.

-Higher level of support for export of defence, farm Produce and eco-friendly products.

Income Tax – Normal Rates of tax: FY 2015-16 (AY 2016-17)

1. Where the total income does not exceed Rs. Nil

2. Where the total income exceeds Rs. 10 per cent of the amount by which the total
2,50,000/- but does not exceed Rs. 5,00,000/-. income exceeds Rs. 2,50,000/-
3. Where the total income exceeds Rs. Rs. 25,000/- plus 20 per cent of the amount by
5,00,000/- but does not exceed Rs. 10,00,000/-. which the total income exceeds Rs. 5,00,000/-.
4. Where the total income exceeds Rs. Rs. 1,25,000/- plus 30 per cent of the
10,00,000/-. amount by which the total income
exceeds Rs. 10,00,000/-

Rates of tax for every individual, resident in India, who is of the age of sixty years or more but less
than eighty years at any time during the financial year: Where the total income does not exceed
Rs. 3,00,000/- -Nil.
In case of every individual being a resident in India, who is of the age of eighty years or more at
any time during the financial year- Where the total income does not exceed Rs. 5,00,000/- -Nil

Education Cess on Income Tax at the rate of three percent of the income-tax.

Section 80C, entitles an employee to deductions for the whole of amounts paid or deposited in
the current financial year in the schemes such as insurance, PF, etc, subject to a limit of

Senior citizen” means an individual resident in India who is of the age of sixty years or more at
any time during the relevant previous year.

Very (Super) senior citizen means an individual resident in India who is of the age of eighty
years or more at any time during the relevant previous year .



Commercial Banking in India.-

History Commercial Banking in India.

First in Banking First India bank Got ISO : Canara Bank

First Governor of RBI : Mr. Osborne Smith
First Indian governor of RBI : Mr. C D Deshmukh
First Bank to Introduce ATM in India : HSBC
First Bank to introduce savings : Presidency bank in 1833
First Bank to Introduce Cheque system : Bengal Bank 1784
First Bank to introduce Internet Banking : ICICI BANK
First Bank to introduce Mutual Fund : State Bank of India
First Bank to introduce Credit Card : Central Bank of India
First Bank Set Up in India : Bank of Hindustan in 1770
First Joint Stock Bank of British India : State Bank of India
First Joint Stock Bank of India : Allahabad Bank
First Bank that is oldest Public Sector Bank in India : Allahabad Bank
First national bank that is merged with Punjab National Bank : New Bank of
India in 1993.
First Indian bank to open branch outside India in London in 1946 : Bank of
First Regional Rural Bank name Prathama Grameen Bank - Was started by :
Syndicate Bank.
First Bank to launch branch in foreign was "Bank of India" in 1946 in
London UK.
First bank to Introduce Credit card in India was Central Bank of India With
"Central Card" 1980.
First Bank to introduce Debit Card in India was Citi Bank In Bangalore in
1987 .
The first bank to be given an ISO 9002 certificate for one of its branches --
Canara Bank.
RBI Classification Population Population Group
of Area applicable 0-10,000 Rural
to Branches 10,000-1,00000 Semi-Urban
1,00000-10,00,000 Urban
Above 10,00,000 Metropolitan

Nachiket Mor RBI Panel for Comprehensive Financial Services- Banking Services to all
by Jan 2016. Recommended for Priority Sector Credit to enhanced from

About our Syndicate Bank – 20.10.1925.

Syndicate Bank is the first nationalized bank to implement the Core Banking Solution (CBS) in
our country.

SyndBank Services Ltd incorporated on 25.01.2006 with Authorised Capital of Rs.10 crores and
its paid up capital as on 31-03-2009 was Rs.25 lacs.

Syndicate Bank is the first public sector bank who opened first RBB in India named “Pathama
Grameen Bank” in Moradabad District (U P ) on 02-10-1975.Presently, 3 RRBs –Prathama
Bank, Karnataka Vikas Grameena Bank and Andhra Pragathi Grameena Bank under our banks
sponsorship. All are profit making having total business of Rs.42101 crore with 1348

SyndNavaratna’ Savings Account has been launched for improving its CASA base. The
product caters well for the salaried class employed with MNCs/Blue chip companies/reputed
private organizations/Government and semi-government undertakings

E-Lounge/Self Banking Facilities like Pass Book Printing, Internet Banking, ATM, Self
Serviced Kiosk for Cash and Cheque Deposit etc are being extended at select centers.

Bank had signed a Memorandum of Understanding (MOU) with M/s SBI Life Insurance Co.
Ltd. on 30th March 2015 for providing Group Life Insurance cover to Education Loan
Borrowers of the Bank.

Bank has a Corporate Agency tie-up with M/s TATA-AIA Life Insurance Co Ltd. on 30th
March 2015 for providing Group Life Insurance cover to Housing Loan borrowers of the Bank
on optional basis.

Bank had signed a Memorandum of Understanding (MOU) with LIC for implementation of
“Pradhan Mantri Jeevan Jyoti Bima Yojana”. In this, LIC will provide life insurance cover of
Rs. 2 lakh in case of death of the insured person at nominal premium of Rs. 330 per annum.

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

Synd Connect: Bank has launched a new personal banking loan product “SyndConnect” to
meet loan requirements of employees of Central /State Government Departments, reputed Public
Sector Undertakings and “Fortune 500” Companies.

Synd Delight: Bank has launched a hassle free loan product “SyndDelight” to existing Housing
Loan customers, who have demonstrated satisfactory repayment record of 3 years or more, to
meet any of their genuine personal credit needs.

Our Bank has been conferred with the highest “Rajbhasha Keerti Puraskar” for the year 2014-
15 among other Nationalized Banks and Financial Institutions in Region ‘C’ for effective
implementation of Official Language Policy.

Syndicate Bank won SKOCH ORDER -OF-MERIT & SKOCH AWARD 2015 for Synd
SSGVY- ( Synd Samagra Gramya Vikash Yojana)

Performance of our Bank as on 31.03.2015-

Particulars 31.03.2015
Global Business increased to Rs.4,61,192 Crores. Rs.4,61,192 Crore.
Provision Coverage Ratio at 66.61% 66.61%
Operating Profit up by 12.46%. 12.46%
Net Profit at Rs.1,523 Crores Rs.1,523 Crore
CRAR (as per Basel III) at 10.54%. 10.54%.
Global NIM : 2.38%. 2.38%.
Gross NPA 3.13%
Net NPA 1.90%
Gross NPA Rs.6442 Crore
Net NPA Rs.3844 Crore
Yield on Investments 8.09%
Gross Investments Rs.69558 Crore
Global deposits Rs.255388 Crore
Global Advances Rs.205804 Crore
Cost of Deposits 6.73%
Yield on Advances 9.34%
Return on Assets 0.58%
Regulatory Total Capital Rs.16,891 Cr
Earnings Per Share Rs.24.38
Book Value Per Share Rs.197.24
Govt. of India- Equity holding 69.24%
Share Capital Rs.662.06 Cr
Branches opened during FY 2014 – 15 303
Total branches as on 31.03.2015 3552
Capital Adequacy Ratio (Basel II) (%) 10.92%
Return on Equity (ROE) stood at 13.30% 13.30%

All about Scheduled Commercial Banks-

Sr. No. Particulars Details

1 Total Number of Scheduled Commercial Banks 148
Out of which Regional Rural Banks(RRBs) 56
2 Total branches of Scheduled Commercial Banks in India as 1,25,863 (100%)
on 31.03.2015
Out of which-Rural Branches 48033 (38%)
Out of which-Semi Urban Branches 33523 (27%)
Out of which- Urban Branches 23522 (19%)
Out of which- Metro Branches 20785 (16% )
3 Performance of Scheduled Commercial Banks in India as
on 31.03.2015
Credit Deposit (CD) Ratio 77.40%
Growth in Aggregate Deposit 10.70%
Growth in Gross Bank Credit 9.80%
Highest Growth in Aggregate Deposit in Rural area 15.70%
Highest Growth in Gross Bank Credit in Rural area 14.70%
Lowest Growth in Aggregate Deposit in Metro area 7.70%
Lowest Growth in Gross Bank Credit in Metro area 8.50%
4 Performance of Nationalized Banks in India as on
Growth in Aggregate Deposit 7.58%
Growth in Gross Bank Credit 7.80%
5 Performance of Private Sector Banks in India as on
Growth in Aggregate Deposit 16.80%
Growth in Gross Bank Credit 18.60
6 Performance of Foreign Banks in India as on 31.03.2015
Growth in Aggregate Deposit 14.10%
Growth in Gross Bank Credit 11.00%

1. Allahabad Bank – A tradition of trust
2. Andhra Bank – For all your needs
3. Bank of Baroda – India‘s International Bank
4. Bank of Maharashtra – One family one bank
5. Bank of India – Relationship beyond banking
6. Canara Bank – Together we can
7. Central Bank Of India – Build a better life around us
8. Corporation Bank – Prosperity for all
9. Dena Bank – Trusted Family Bank
10. Indian Bank – Your tech friendly Bank
11. Indian Overseas Bank – Good people to grow with

12. Oriental Bank of Commerce – Where every individual is committed
13. Punjab National Bank – The name you can bank upon
14. Punjab and Sind Bank – To strive to achieve excellence in customer service
15. Syndicate Bank – Faithful and friendly
16. United Commercial Bank – Honours your trust
17. Union Bank of India – Good people to bank with
18. United Bank of India – The bank that begins with ―Uǁ
19. Vijaya Bank – A friend you can bank on
20. State Bank of India – With you all the way
21. State Bank of Hyderabad – Modern Innovative dependable
22. State Bank of Mysore – Working for a better tomorrow
23. State Bank of Patiala – Blending modernity with tradition
24. State Bank of Travancore – Since 1945 – a long tradition of trust
25. ICICI Bank – Hum Hai Na
26. IDBI Bank – Banking for all
27. HSBC bank – World‘s local bank
28. HDFC Bank – We understand your world
29. Bank of Rajasthan – Together we prosper
30. Federal Bank – Your perfect Banking partner
31. Yes Bank – Experience our expertise
32. Jammu and Kashmir Bank – Serving to empower
33. Lakshmi Vilas Bank Limited – The changing face of prosperity
34. Karur Vysya Bank – Smart way to Bank
35. Deutshe Bank – A passion to perform
36. South Indian Bank Limited – Experience Next Generation Banking

Current Financial Awareness-

The Reserve Bank of India Governor, Dr. Raghuram Rajan has been conferred with the Central
Banker of the Year Award (Global and Asia Pacific) for 2016 by The Banker, a monthly
publication of the Financial Times Group focusing on banking. The Central Banker of the Year
2016 awards celebrate the officials that have best managed to stimulate growth and stabilize their

Global Private Banking Awards 2015 – Best Private Bank In India- Kotak Wealth Management.

Best Global Private Bank 2015 - UBS Wealth Management.

Angus Deaton of Scotland -Nobel Memorial Prize in Economic Sciences 2015

Forbes India Leadership Award 2015 -Arundhati Bhattacharya, State Bank of India -Best CEO
of Public Sector.

Finance Minister of independent India was R. K.Shanmukham Chetty, who also presented its
first Budget. Present Finance Minister of India is -Arun Jaitley.

IBA Chairman- Shri Ashwani Kumar : Dena Bank

Upendra Kumar (U K ) Sinha is the present chairman of SEBI.

Jim Yong Kim, is the President of the World Bank .

IMF Managing Director-Christine Lagarde.

Takehiko Nakao- President/Chairman of Asian Development Bank (ADB)

The latest government estimate, released, the figure of total food-grain production during 2014-
15 crop year (July-June period) at 257.10 million tonnes (MT) which is lower than the last year's
record food-grain production of 265.60 MT in 2013-14.

Saving Rate % of GDP 30.60% for 2013-14-For 2014-15 figures not available at present.

Capital formation rate 32.30% for 2013-14- For 2014-15 figures not available at present.

Per Capita Net National Income Rs.88533 (At current market prices) for 2014-15 as per advance
estimates. Rs.80388/- for 2013-14.

India’s share in world exports is about - 2%.

Vice Chairman of NITI Ayog - Mr. Arvind Pangariya.

Payment Banks-
1) The minimum paid-up capital requirement for payments banks is Rs. 100 crore.
2) As per the guidelines, the promoters' initial minimum contribution will be at least 40 % of the
minimum capital, to be locked in for a period of 5 years.
3) Payments banks will have to invest in government securities with a maturity of up to one year.
4)Payments banks will be used only for transaction and deposits purposes. Unlike small banks,
payments banks cannot lend money.
5) Payments banks can open small savings accounts and accept deposits of up to Rs.1 lakh per
individual customer and provide remittance services. Hence, the balance at the close of business
on any day should not exceed Rs.1 lakh per customer.

The Government of India has accepted the recommendation of the 14th Finance Commission
which was headed by Dr. Y.V. Reddy. The share of states in the centre's tax revenue is increased
from 32% to 42%.Chairman – Dr. Y.V. Reddy (former Governor of Reserve Bank of India)

The Asian Development Bank (ADB) projected India's growth rate to 7.8 per cent in 2015-16.
It also forecast India's growth rate would be 8.2 percent in 2016-17.

Reliance partnered with SBI (State Bank of India) for Payment Bank Licence. RIL will be the
promoter and SBI will be the joint venture partner with equity investment of up to 30%.

Fiscal deficit Fiscal deficit means the government’s total expenditure (excluding the
money it’s borrowed) exceeds its revenue.

Budget deficit Budget deficit is normally known as national debt. A country’s fiscal
deficit is usually calculated as a percentage of its gross domestic
product. Gross domestic product (GDP) means the market value of all
the finished goods produced or services rendered within the domestic
boundary of the country excluding imports occur within a defined

Reasons of Fiscal -Subsidy on rising crude oil import along with increasing global oil
Deficit prices.

-Demand for gold has contributed to weaken the rupee rate against $
which makes the import costlier & thereby increasing the subsidy
burden resulting widen fiscal deficit.

-Fertilizer subsidy.

-Increase in government expenditure towards unproductive areas like

interest payment cost.

-Higher fiscal deficit leads to higher level of inflation in the economy

especially in Indian economy as compared to other developed nations
like U.S.

-Due to high fiscal deficit & lower growth, there’s always a risk of
downward rating by global rating agencies.

Minority Community Jain community is now included in Minority community.

Bangaluru City- Wifi IT capital Bangalore has become the first Indian city to provide free
wifi services to its citizens. The state government initiative 'Namma
wifi' covers 5 crucial locations in the city and aims to be extended to
other areas in the coming months as well.

Bharat Mobile The name given to a newly announced scheme under which a free
Scheme mobile handset will be provided to one member of every rural
household who has completed 100 days of work under MGNREGA.
Special National Union Govt. on 2 August 2013 gave its approval for setting up of a
Investment Fund fund to help six PSUs, to make them compliant with the 10%
(SNIF) minimum public holding norm of market regulator SEBI. Six sick
PSUs which will be covered under this proposed fund are – HMT, ITI,
Scooters India Limited, Andrew Yule, Fertilizer and Chemical
Limited (Travancore) and Hindustan Photo Films Limited.
Arundhati She is appointed as the first woman Managing Director (MD) of State
Bhattacharya Bank of India (SBI) on 3 August 2013.

Raghuram Rajan Raghuram Rajan has been appointed as the 23 rd Governor of the
Reserve Bank of India (RBI) who was the Chief Economic Advisor to
the Govt. of India.
M-Pesa Telecommunication major Vodafone has recently launched a unique
money transfer and payment service “M-Pesa” in Bihar and Jharkhand
where banking network and financial penetration is inadequate,
particularly in rural areas. ICICI Bank is the banking partner of
Vodafone in this service.
Bharatiya Mahila Bharatiya Mahila Bank is the India’s first women’s bank. With an
Bank initial capital of Rs.1,000 crore, this bank would provide dedicated
financial services to women in general and women self-help groups
(SHGs). Which was world’s first women’s bank? – Pakistan’s First
Women Bank (FWB), which was established in 1989.
Tax Administration Parthasarathy Shome is heading the seven- member Tax
Reform Commission Administration Reform Commission (TARC), which was constituted
(TARC), by the Union Govt. on 26 August, 2013 to have a comprehensive
review of existing tax laws and suggest a stable tax administration.
Cheraman Financial Cheraman Financial Services Limited (CFSL), became the first
Services Limited Islamic financial services company to be launched in India, started its
(CFSL), operations in Kerala state recently
IIM, Kashipur This IIM of the country recently launched a first-of-its-kind
management development programme on Islamic Banking and
Nishi Vasudeva Nishi Vasudeva’s name came to news when she was selected by the
Public Enterprises Selection Board (PESB) to head a Navratna
category PSU and thus is on the way to become the first- ever woman
to head a Navratna PSU. She is expected to take over as the Chairman
and Managing Director of Hindustan Petroleum Corporation Ltd
(HPCL) in March, 2014.
LIC Nomura Mutual Mutual fund company recently launched an auto premium payment
Fund system in collaboration with Life Insurance Corporation to enable its
mutual fund investors to pay their insurance premium.
Brown Label' ATM Brown label ATMs are those Automated Teller Machines where
hardware and the lease of the ATM machine is owned by a service
provider, but cash management and connectivity to banking networks
is provided by a sponsor bank whose brand is used on the ATM.
Deepak Sandhu Has become India’s first Woman Chief Information Commissioner.
Swarn Jayanti Rojgar Swarozgar Yojana & Swarn Jayanti Rojgar Yojana comes under
Yojana which department – Ministry of Rural Development (GraminVikas
Govt. of Maharashtra During August 2013 Maharashtra became the first state of the country
to disburse employees’ salary through Aadhaar-linked bank accounts.
Employees of Information Technology (IT) Department. of
Maharashtra Govt. were disbursed their salaries through Aadhaar

Delhi State Delhi State on 20 August, 2013 became the first state to launch the
food security scheme for its citizens.
Top Companies in Top companies in India by market capitalization – TCS
Top companies in India by net profit- Reliance Industries.

Top companies in India by net sales- IOC- Indian Oil.

LPG Cylinders The Union Cabinet has approved raising the quota of subsidised LPG
(cooking gas) to 12 cylinders per household in a year from current
nine wef 01.02.2014.
RBI Approval Prior approval of Reserve Bank is required for acquisition of 5 per
cent or more of shares or voting rights in a banking company by any
“Small Company” ‘‘small company’’ means a company, other than a public company,—
Under Companies Act
2013 (i) paid-up share capital of which does not exceed fifty lakh rupees or
such higher amount as may be prescribed which shall not be more
than five crore rupees; or

(ii) turnover of which as per its last profit and loss account does not
exceed two crore rupees or such higher amount as may be prescribed
which shall not be more than twenty crore rupees:

For qualifying as a small company, it is enough if either the capital is

less than rupees fifty lakhs or turnover is less than rupees twenty
crores. It is sufficient if either one of the requirement is met without
meeting the other requirement. However, these limits may be raised
but not exceeding rupees five crores in case of capital and rupees
twenty crores in case of turnover. Only a private company can be
classified as a small company.
Kisan Diwas Kisan Diwas - observed in India on 23rd December.
Chairman of Chairman of NABARD – Dr. Harsh Kumar Bhanwal
Insurance Sector The Finance Ministry on 14 August, 2013 announced that public
sector insurance company LIC can increase its investments in
companies up to 25% under special circumstances as against present
investment limit of 20%.
CRR If RBI reduces CRR than what happens—Credit Supply increases.
NIM Net interest margin (NIM) = Net Interest Income / Total Assets.
Doha Bank RBI has recently given license to Doha Bank to start its banking
operations in India & permitted to open branch in Mumbai.
Justice Sodhi Justice Sodhi Committee on Insider Trading Regulations is appointed
Committee by SEBI.

Inflation Indexed RBI has launched an Inflation Indexed Saving Bonds that offers
Saving Bonds protection to Retail Investors from price rise.
Trustee & Beneficiary Relationship between bank and customer in case of goods left by
mistake in custody of the bank is “ Trustee & beneficiary”.
Charge on Shares For obtaining loan against shares, the Charge created on shares is
Govt. Shareholding Govt. shareholding in public sector banks cannot be below : 51%
Selling of NPA To sell an NPA, the account must remain in the books of seller bank :
for 24 months as NPA.
Self Help Group The no. of members in a SHG in SGSY in normal cases : 10 to 20
Axis Bank Axis Bank launched co-branded credit card that offers a blend of
insurance and a number of travel benefits for international frequent
flyers, available in 2 versions, viz. World Select and World.
The Bank The Bank International Indonesia (BII) launched its operations in
International India by opening a branch in Mumbai.
Indonesia (BII)
Basel III Indian banks would need Rs 3,90,000-5,00,000 crore capital over the
next six years in the wake of Basel III capital regulations announced
by the RBI.
Andhra Pradesh Andhra Pradesh Grameena Vikas Bank (APGVB) has opened about
Grameena Vikas 1.5 lakh no-frills accounts in eight districts of the State on a single day
Bank as part of Direct Benefit Transfer (DBT) initiative.
ICICI Bank ICICI Bank Ltd, India’s largest private sector bank, has launched
ICICI Bank Carbon in partnership with Visa.
ED of Bharatiya Smt. S M Swathi
Mahila Bank
Chairman of 7th Pay Justice Ashok Kumar Mathur.
CEO of Microsoft India born, Mr. Satya Nadella
MICR Code 9 Digit Number
RTGS/NEFT Code 11 Digit Number
Aadhar Card Code 12 Digit Number
EPFO The Employees Provident Fund Organization has decided to raise
interest rate on PF deposits for 2013-14 to 8.75%.
IDRBT, Hyderabad The Banking Technology Excellence awards were instituted by
Institute for Development and Research in Banking Technology
(IDRBT) Hyderabad.
Unclaimed Dividend After 7 years, the companies are required to transfer the amount of
unclaimed dividend to the Investor Education and Protection Fund
(IEPF) of the Ministry of Corporate Affairs (MCA).
CACP Commission for Agricultural Cost & Prices
Intersol Charges Charges levied by the banks to cover the cost of extending services to
customers by using the CBS/Internet/Intranet platform.
Women a/c Only 30% of women in India have a bank account.
ATM PIN-4 Digit ATM PIN is mandatory wef 01.12.2013 while you shop with card.
Card transactions are more secure & frauds can be avoided.
e-insurance Wef 01.04.2014, all sold insurance policy documents will become
digital and paperless.
KYC Penalties RBI will now be able to slap penalty of Rs.1 crore on banks if they
breach a single norm. If more than one norm is breached then the fine
will be multiples of Rs.1 crore.
Average Growth Average growth during last ten years was at 7.50%
External Debt India’s external debt is about 20% of GDP.
B N Shrikrishna Head of Financial Sector Legislation Reforms Commission
New Pvt Sector Banks Minimum Paid up Ccapital-Rs.500 crores. Promoters should be “Fit &
Proper” with 10 years of successful track record. 25% branches in
unbanked rural area. Cap on foreign investment at 49%. Bimal Jalan
to head panel on New Bank Licenses.
Manipal to Manipur Syndicate Bank opened 3001st branch opened at Imphal in Manipur
Rajat Gupta Former Goldman Sach Director convicted for insider trading.
New all Womens Bhartiya Mahila Bank- Head Quarters at New Delhi
Bulk Deposit Over Rs.1 crores constitutes bulk deposit
Bulk Deposit Cap 15% of total deposits
Bitcoin Bitcoin is virtual currency or digital currency. Internationally
recognized currency code for Bitcoins is BTC. 1 Bitcoin is divided in
to smaller units called Satoshis. Ripal, LightCoin, MasterCoin ,NXT
& DojCoin are digital currencies. In India “Laxmicoin“ is e-currency.
JET - HDFC HDFC launched India’s first premier debit card named as
“Jetprivilage-HDFC Bank World Debit Ccard”.
LIC SyndicateBank ink pact with with LIC to act as “Corporate Agent”.
Insurance 10% Indians have life insurance cover and 9.60% Indians have non-
life insurance covers.
Interest Rate Subsidy For export raised to 3% from 2%.
Ratnakar Bank Ratnakar Bank also called as NH4 Bank acquired RBS India assets.
IRDA IRDA stipulated that not more than 25% of insurance business
handled by bank as broker can be placed with the Insurance Company
floated by it.
e-KYC e-KYC initiated by UIDAI. Paperless KYC permitted by RBI.
ARC RBI increased ceiling for FDI in ARC from 49% to 74%
White Label ATM First White Label ATM by Muthoot Finance Ltd-NBFC.
Rajiv Awas Yojana For Urban Poors residing in Slum area.
FDI Cap Insurance Sector- 49%
Pension Sector-26%
Private Sector Banks-74%. Automatic route-49%. Above 49%- Govt
Approval is required.
HUF HUF or its Karta cannot be designated as a partner in LLP.
Saving Rate Overall saving rate at proportion of GDP for FY 2013- 2014 was

Poverty Line Poverty line computed on the basis of spending and not family
income. Spending is per person and not per family. Rs.26 in Rural
area and Rs.32 in Urban area.
Dollar Deposit Hedging cost reduced to 3.50% p.a. against 7%. RBI Subsidy is
Scheme available to bank. This is low cost deposit.
World’s Largest 1) US 2) China 3) Japan
DBT Direct Benefit Transfer first introduced in Gas
ACU Common settlement currency of ACU is US$.
CAMELS Rating of Banks by RBI. Capital Adequacy, Asset Quality,
Management, Earnings, Liquidity, Systems & Controls.

RBI has decided that now onwards the Reverse Repo Rate will not be announced separately, but
will be linked to Repo rate and it will always be 100 bps below the Repo rate.

It was decided that Marginal Standing Facility i.e. MSF rate will be linked to Repo rate and it
will always be 100 bps above the Repo Rate.

Ministry of Housing and Urban Poverty Alleviation, Government of India has set up the Credit
Risk Guarantee Fund Trust for Low Income Housing (CRGFTLIH). Banks may assign zero risk
weight for the guaranteed portion. In case the advance covered by CRGFTLIH guarantee
becomes non-performing, no provision need be made towards the guaranteed portion.

Abhijit Sen committee- Committee recommended the change in the base year of the Wholesale
Price Index.

2010 is the base year of the New Consumer Price Index Series. Since January 2011 the C.S.O.
(Central Statistical Office) has started new CPI series.

With which among the countries has India signed a Comprehensive Economic Partnership
Agreement (CEPA)? India has signed a CEPA (Comprehensive Economic Partnership
Agreement) with Japan and South Korea. India has signed CECA (Comprehensive Economic
Cooperation Agreement) with Singapore and Malaysia.

All Women Bank (Bharatiya Mahila Bank) opened in Nov 2013 with initial capital of Rs.1000
crore. FM constituted committee to prepare blue print for Women’s Bank under Chairmanship of
former Canara Bank CMD Mr. M B N Rao.

Safety Net- Safety Net is a scheme where a company promoters assure that they will pay back
shares from retail investors at the IPO price if its stock falls sharply during first 6 months after
listing. Use of safety net shows confidence of a company in pricing the company.

Name & Shame Policy- To publish the photographs and other details of willful loan defaulters
in news papers.

Finance Ministry has asked PSBs to limit their reliance on CDs to 10% of their total deposits
while the combined cap on bulk deposits and CDs were kept at 15% of their total deposits.

CAD- Current Account Deficit-Difference between inflows and outflows of foreign currency.

Presently right to make monetary policy decisions vests with RBI Governor instead of

As per IRDA Guidelines, no denial of new health insurance up to the age of 65 years.

Chairman of 14 th Finance Commission- Mr. Y V Reddy. (Former RBI Governor)

CDR- at least 75% of creditors by Value and 60% of creditors by number should agree for
implementation of CDR Scheme.

Small saving Rates wef 01.04.2013-

PPF 5 Year NSC 10 Year NSC SB Account 5 Years RD 5 Yrs MIS

8.70% 8.50% 8.80% 4.00% 8.30% 8.40%

Kisan Vikas Patra-100 months-8.67%

Sukanya Samrudhi Account -8.70%

Senior Citizen Saving Scheme-9.30%-5 Years

Revised Agency Commission rate structure wef 01.07.2012 decided by RBI is as under:-

Sl. No. Type of transaction Unit Existing Revised

Rate Rate
1 Receipts – Physical mode Per transaction Rs. 45 Rs. 50
Receipts – e-mode Per transaction Rs. 45 Rs. 12
2 Pension Payments Per transaction Rs. 60 Rs. 65
3 Payments other than Per Rs. 100 9 paise 5.5 paise
Pension turnover

Nationalized banks, with more than Rs 3 lakh crore of business, are to get the additional ED-
Three Executive Directors.

Basel III measures aim to:

 improve the banking sector's ability to absorb shocks arising from financial and
economic stress, whatever the source
 improve risk management and governance
 strengthen banks' transparency and disclosures.

The basic structure of Basel III remains unchanged with three mutually reinforcing pillars.

Pillar 1 : Minimum Regulatory Capital Requirements based on Risk Weighted Assets (RWAs) :
Maintaining capital calculated through credit, market and operational risk areas.

Pillar 2 : Supervisory Review Process : Regulating tools and frameworks for dealing with
peripheral risks that banks face.

Pillar 3: Market Discipline : Increasing the disclosures that banks must provide to increase the
transparency of banks

Under the CDR system, if a suit filed account is to restructured, the consent of creditors is
required having : 75% share by value and 60% by number of banks.

FDI in private banking sector of India is allowed up to 74% where FDI up to 49% is allowed
through automatic route and FDI beyond 49% but up to 74% is allowed through government
approval route.

CTR- monthly reporting to FIU-IND by the Corporate Office with in 15 Days.

MICR - Magnetic Ink Character Recognition. 9 Digits Code.

In terms of Section 20(1) of the Banking Regulation Act, 1949, a bank cannot grant any loans
and advances- On the security of its own shares.

Form 15G can be submitted by individual below the Age of 60 Years while form 15H can be
submitted by senior citizens i.e. individual’s above the age of 60 years. (60 Years from 1st July

Form 15G can be submitted by Hindu undivided families but form 15H can be submitted only by
Individual above the age of 60 years. ( 60 Years from 1st July 2012).

Bombay Stock Exchange (BSE) – Number one in the world in terms of number of listed

MCX-SX gets recognized Stock Exchange status. Third Stock Exchange in India.

Ministry of Agriculture has planned to double the food production in 5 years.

R. Gandhi – Working Group on enhancing liquidity in the Govt Securities & Interest Rate
Derivatives Market. Participation of Retail Investors in G Secs.

Grand Fathering Provision- All tax benefit given under that contract in Life Insurance Policy.
Existing provision will continue even after that particular tax provision withdrawn or amended

Asset Reconstruction Company (ARC) – The ceiling for FDI in ARC has been increased from
49% to 74% subject to condition that no sponsor may hold more than 50% of shares holding in
an ARC by way of FDI or by routing through FII.

Nair Committee- on Priority Sector Advances

Gold Debit card- Rs.1.00 Lacs withdrawal permitted.

e – lounge – 24 hour self operating unit.

HSBC Head Quarter- in UK

Navin Jindal is top paid executive of listed companies in India. Package of Rs.73.40 crores p.a.
in Jindal Power & Steel Ltd.

12 th Five Year Plan- 2012-13 to 2016-17 target of GDP Growth at 8.20%.

Direct electronic cash transfer of subsidies on Aadhar based bank accounts is implemented wef

New CDR Norms-

Promoter’s contribution upped to 25% from 10%.
Promoter’s must pledge 100% shares
Unconditional Promoter’s Guarantee
Lead Bank can appoint Director when necessary.
Concessional rate of interest can’t be less than Base Rate.

As per RBI under BASEL-II norms minimum 9% CRAR is to be maintained

11 th Five year plan ( 2007-12) - GDP Growth rate achieved-7.90%.

Tata Consultancy Services (TCS) is India’s biggest software company.

BHEL & GAIL gets Maharatna status by Govt. of India.

Kisan Credit Card is in the nature of revolving cash credit facility

BASEL-III implemented wef 01.04.2013. Banks to assess liquidity risk under BASEL III.

Banks (SCB) can now become a member of stock exchanges as per SEBI to undertake
proprietary transactions in the corporate bond market.

Number of ATMs of all the banks put together in India crossed the one Lakh mark. For each ten
lakh population 85 ATMS are installed.

Sick MSEs- A MSE is considered sick when any of the borrowal account of the enterprise
remains NPA for 3 months or more, or if the net worth gets eroded due to accumulated losses to
the extent of 50% of the net worth. Now , RBI has removed the stipulation that the unit should
have been in commercial production for at least 2 years.

The Reserve Bank has advised banks to waive margin/security requirements for agricultural
loans up to Rs. 2,00,000.

There would be an overall cap of USD 5 billion for raising of capital by issuance of IDRs by
eligible foreign companies in Indian markets.

Baltic Exchange -An exchange that handles the trading and settlement of both physical contracts
and derivatives relating to shipping and maritime transportation.

Dr. Rakesh Mohan has been appointed as Executive Director of International Monetary Fund

Appreciation and Depreciation of Currency-

• A currency is said to appreciate when it buys more of a foreign currency.

– An appreciation of a nation’s currency will make foreign goods cheaper.
– This would likely cause an increase in imports and a decline in exports.

• A currency is said to depreciate when it buys less of a foreign currency.

– A depreciationwill make foreign goods more expensive.
– This would likely cause a decrease in imports and an increase in exports.

Internal Rate of Return- IRR is calculated for Project Finance.

Bank Staff welfare facilities ceiling 3% of net profit of previous year ending.

Rapco Bank – Govt of India Enterprise.

VaR means - Value at Risk
The asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value.

In view of fragile economic recovery, Plan panel has decided to lower annual average economic
growth rate to 8.2% in the 12th Five Year Plan (2012-17) from 9% envisaged earlier.

Hong Kong - The most economically free nations in the world.

The call money market is an integral part of the Indian Money Market, where the day-to-day
surplus funds (mostly of banks) are traded. The loans are of short-term duration varying from 1
to 14 days. The money that is lent for one day in this market is known as "Call Money", and if it
exceeds one day (but less than 15 days) it is referred to as "Notice Money". Term Money refers
to Money lent for 15 days or more in the Inter Bank Market

CDs are short-term borrowings in the form of Usance Promissory Notes having a maturity of not
less than 15 days up to a maximum of one year. CD is subject to payment of Stamp Duty under
Indian Stamp Act, 1899 (Central Act). These are issued in denominations of Rs.5 Lacs and Rs. 1
Lac thereafter. Bank CDs have maturity up to one year. Minimum period for a bank CD is fifteen
days. Financial Institutions are allowed to issue CDs for a period between 1 year and up to 3

Treasury bills are actually a class of Central Government Securities. Treasury bills, commonly
referred to as T-Bills are issued by Government of India against their short term borrowing
requirements with maturities ranging between 14 to 364 days. The T-Bill of below mentioned
periods are currently issued by Government/Reserve Bank of India in Primary Market 91-day
and 364-day T-Bills. All these are issued at a discount-to-face value. For example a Treasury bill
of Rs. 100.00 face value issued for Rs. 91.50 gets redeemed at the end of it's tenure at Rs.

The Coupon rate is simply the interest rate that every debenture/Bond carries on its face value
and is fixed at the time of issuance. For example, a 12% p.a coupon rate on a bond/debenture of
Rs 100 implies that the investor will receive Rs 12 p.a. The coupon can be payable monthly,
quarterly, half-yearly, or annually or cumulative on redemption

Coupon rate: the interest rate paid by the issuer to the coupon bond-no coupon -
issuing value is under the face (nominal) value.Zero Coupon Bonds Pay No Periodic Interest.

Commercial Paper is a ‘money market instrument. CP shall be issued in denominations of 5 lakh

and multiples thereof. CP shall be issued at a discount to face value as may be determined by the
issuer. CP shall be issued for maturities between a minimum of 7 days and a maximum of up to
one year from the date of issue.

Fixed Income Money Market and Derivatives Association of India (FIMMDA)

Committee on Financial Inclusion- Mr C Rangarajan,

Committee on Micro Finance Institution-Y H Malegam

Committee on PSA Lending & Related issues- M V Nair

SEBI has decided to enhance minimum investment amount per client managed by Portfolio
Managers to Rs.25 Lacs from Rs.5.00 Lacs.

CVC has appointed Shyamala Gopinath as the Chairperson of the Advisory Board on Bank,
Commercial & Financial Frauds.

GAAR - General Anti Avoidance Rules-which aims to check tax evasion by foreign investors
has been deferred & will be implemented as recommended by Parthasarathi Shome panel.

“Bombay House” is HQ of TATA Group located at Mumbai.

Cyrus Mistry is named after Ratan Tata as CEO of TATA Group.

Petrol cheaper in Delhi and costly in Mumbai. Cheaper in Venezuala at $ 0.02.

Recently FDI in Insurance sector allowed up to 49%.

Zero Date is date of commencement of project implementation

CIC – Central Information Commissioner- Shri Satyananda Mishra. Mr. Basant Seth- Our Ex
Chairman appointed as Information Commissioner in CIC.

Airtel launched 4 G services first time in India in Kolkata City.

Buy back of shares by the company-

Floor Price-Minimum buy back price offered by the company.
Quoted Price- Actual price of shares on stock exchange
Discounted price- Actual price paid to the investors by the company after buy back of shares.

GoI has recently enhanced minimum pension amount to Rs.1000/-

Validity of cheques/DDs/PO is now reduced to 3 months wef 01-04-2012 i-e from the date of
instrument to be presented for payment.

SOPA- Stop Online Piracy Act.

SUUTI: Specified Undertaking of the Unit Trust of India.

During 12 th Five year plan ( 2012-2017) targeted average growth of 8.20%.

Best destination to do business in the world is Singapore.

United Stock Exchange is associated with currency futures.

Damodaran Committee was set up for Customer Service.-Prepayment Charges.

Rupee Symbol was suggested by D. Uday Kumar, IITan in July 2010.

USB- Ultra Small Branches under financial inclusion

FRBM- Fiscal Responsibility and Budget Management Act

Only Salaried individuals with taxable income of less than Rs 5 lakh will not have to file
income-tax returns.

The Reserve Bank allowed domestic companies to issue shares against import of capital goods
and machineries, making it easier for them to expand.

“All such conversions of import payables for capital goods into FDI should be completed within
180 days from the date of shipment of the goods”, RBI said. Earlier, an Indian company was
only allowed to issue shares to a foreigner in lieu of technology or technical know-how and
against royalty and lumpsump fees.

Equities could also be issued under the FDI norms against pre-operative expenses like payment
of rent. The central bank has said that for conversion of shares for payments of imported capital
goods, the company has to pass a special resolution.

Currency of China- Yuan (Renminbi)

Best e-governed State in India- Delhi

“Revolution 2020” is a book written by Chetan Bhagat

CSO- Central Statistical Organization conducts Economic Census of India

Yes Bank is paying highest SB interest @7% with balances over Rs.1.00 lacs and 6% for
balances below Rs.1.00 lacs.

According to Supreme Court Judgement dated 19-02-2008 in the case of Thiruvengada Pillai
vs. Navaneethammal and Anr., the stamp papers do not have any expiry period.

Goa topped the list of states with highest per capita income in the country with a total per capita
income of Rs.1,92,652. Per Capita Income means earnings of each Indian if the national income
is evenly divided among the Country’s population.

SPV- Special Purpose Vehicle - SPVs are legal entities created mostly by companies to execute a
particular Project for a special purpose.

Rajiv Awas Yojana - Central Govt. Scheme for affordable Housing for slum dwellers ( urban

ECB –Limit for eligible borrowers to avail of ECB under the Automatic route per F Y for
Corporate to $ 750 millions as against $500 millions. Services Sector Corporates $ 200 millions
from $ 100 millions.

SEBI rejected the recommendation of Bimal Jalan Committee of not allowing Stock Exchanges
to be listed on Stock Exchanges.

Ex. SBI Chairman- Mr. Prateep Chaudhari initiated discussions regarding abolishing of CRR.

Microsoft has launched its educational portal “ Unlimited Potensial” in India.

Bangala Desh is considered as the Originator of the concept of “Micro Finance”.

NHB- National Housing Bank is the Housing Finance Regulator.

Annual investment ceiling in PPF has been increased to Rs.1.00 Lac from Rs.70,000/-

ADB-67 Member at present.

Laxmi Mittal is Sixth & Mukesh Ambani is 9 th as per Forbes Billinioers list - most richest
persons in the World.

Syndicate Bank Employee can now contribute any % of pay as additional EPF (Earlier cap-20%
of pay)

Reimbursement of premium under SyndArogya policies is restricted to 50% of premium paid

for policies up to Rs.1.00 Lac.

Core Banking Solutions was introduced in our bank in the year 2001. ABB Facilities were
introduced wef 01.11.2002. Multicity Cheque Book facility was introduced wef 01.04.2004.

India's first fund with SIP in Gold- Reliance Gold Saving Fund.

Chairman of SEBI- Mr. U K Sinha, Ex CMD of UTI AMC.

“e-post office”, the e-Commerce portal of India Post. The portal will enable the customers to
transact postal business any time.

NALCO is the first PSU to offer Employees Stock Options (ESOPs)

Honkong - Real Estate highest prices in the world ( Mumbai 6 th )

Presently, China has become the second largest economy in the world.

Oldest Stock Exchange in Asia- Bombay Stock Exchange, Mumbai.

eTHIC- software is used by our bank for RBIA developed by 3i Infotech.

Net interest margin is defined as the total interest earned less total interest paid

Burden is defined as the total non-interest expenses less total non-interest income.

The name of ABN Amro Bank N. V. was changed to Royal Bank of Scotland N. V. wef

India at 5 th spot in Global Economic Power list. First USA, Second China, Third Japan, Fourth
Germany and Fifth India. China has became second larest economy in the World against third as
earlier. India moved to fifth spot in 2009 from 10 th in 2000.

Dutch Auction Method (DAM) -Under the DAM, Investors are required to put in bids for
quantum of shares and the price they are willing to pay. The last or lowest price at which all
shares are assigned becomes the issue price of the shares provided it is not lower then the floor
price. Investors are allotted shares at the issue price.

Example: Where X Co. Ltd., offered 10000 shares and bids were received for 2500 shares at Rs
500/ – per share; further 3500 shares at Rs 475/- per share; another 3000 shares at Rs 400/- per
share and 1000 shares at Rs 375/-. At Rs 375/- which is the lowest for the 10000 shares becomes
the issue price. Book Building Method is based on the Dutch auction method where the issuer
determines a price band within which bids are invited to determine the price and the lowest price
offered is considered the issue price.

French Auction Method (FAM) -Under FAM issuing company sets a floor price (ibid) which
investors place their bids. On a price-priority basis, allotments are made. Investors are issued
shares at the prices they have indicated and not the cut off price as is the system under DAM.
Investors are bound to pay the price they have stated in their applications. NTPC & REC issued
shares under this method.

NSDL is National Securities Depository Limited - the largest depository of Indian stocks

CDSL is Central Depository Securities Ltd

SEBI is celebrating its Silver Jubilee during this year. Completed 25 years.

Bajaj Auto allowed Quadricycles RE60 (Identification Symbol-Q) to play on roads as a public
transport with in city limits.

AirAsia India - In the new airline, AirAsia (Malaysia) will hold 49% stake, Tata Sons, 30%, and
Arun Bhatia of Telestra Tradeplace the remaining 21%.

Reserve Bank of India The Reserve Bank of India started functioning on April 1, 1935,
making April 1, 2009 to March 31, 2010 its 75th year. Bank’s
Platinum Jubilee Year. RBI Nationalised in 1948.
Insurance policy Insurance policy is contract of indemnity.
Financial Inclusion Financial inclusion is delivery of the banking facilities
( FI) /services to all the people in fair, transparent and equitable
manner at affordable cost.

Finacial Inclusion- is providing or ensuring banking services at

affordable costs to weaker sections of the society or unbanked
segment which does not have access to formal banking systems.

United Western Bank In IDBI Bank
Bank of Madura was With ICICI Bank
Global Trust Bank has Merged with OBC.
Suvarna Sahakari Bank Merged with IOB wef 01.02.2009
MD & CEO of Axis Shikha Sharma.
MD & CEO of ICICI Chanda Kochar wef 01.05.2009.
Bank K V Kamath is now Non Executive Chairman of the ICICI Bank.
Application Supported This facility is available while applying for initial public offer
By Blocked Amount (IPO) instead of paying through cheques.
Commonwealth Bank Australia’s leading financial institution Commonwealth Bank will
be opening its first branch in India (in Mumbai)
Bank mergers Finance Ministry has appointed Global Consultants Mc Kinsay &
Co. and Ernst & Young to suggest possible PSU Bank candidates
that could be amalgamated to form bigger & strong banks.
Insurance Regulatory T.S. Vijayan (Ex LIC Chairman)
& Development
Authority (IRDA) -
RBI Governor Mr. Raghuram Rajan wef 04.09.2013.
Healthy merger in Times Bank and HDFC Bank
banking industry
Chairman of NITI Prime Minister is ex-officio chairman of NITI Ayog.

Provision Coverage Provision Coverage Ratio- PCR is a measure of funds that banks
Ratio have to set aside from their profits to protect against losses from
some loan going bad. Higher PCR denotes good financial health.

My Money Card AXIS Bank launches this pre-paid card for youths the freedom to
spend anytime and anywhere.

India Travel Card Axis Bank’s India Travel Card, a unique prepaid debit card to
secure currency needs when Foreign Nationals and Non Resident
Indians travel in India. Loaded with a host of unique features, the
India Travel Card is designed to make Indian trip more enjoyable
and free from foreign currency exchange hassles. The India Travel
Card will only be available for Foreign Nationals and Non Resident

Conversion of shares Is called “Rematerialisation”
into physical form from
electronic form.
Reverse Mortgage – A reverse mortgage enables older homeowners (60+) to convert
part of the equity in their homes into tax-free income without
having to sell the home, give up title, or take on a new monthly
mortgage payment. The reverse mortgage is aptly named because
the payment stream is “reversed.” Instead of making monthly
payments to a lender, as with a regular mortgage, a lender makes
payments to you.

Rs.1/- Revenue Stamp For receipt up to Rs.5000/- exempted as per Indian Stamp Act. For
to be affixed as per issuing receipt above Rs.5000/-, one rupee revenue stamp must be
Indian Stamp Act. affixed.

Consumer Protection District Forum- Subject to the other provisions of this Act, the
Act 1986 District Forum shall have jurisdiction to entertain complaints where
the value of the goods or services and the compensation, if any,
claimed does not exceed rupees Twenty lakhs.

State Forum- complaints where the value of the goods or services

and compensation, if any, claimed exceeds rupees Twenty lakhs
but does not exceed rupees 100 lakhs;

National Forum- ) complaints where the value of the goods or

services and compensation, if any, claimed exceeds rupees 100
Limitation period is two years from the cause of action.
Chairman of National Minister of Consumer Affairs is ex – officio chairman of National
Consumer Council Consumer Council.

Rajbhasha Division in Ministry of Home Affairs and not Finance Ministry.

Central Govt. is
associated with
Commodity Exchanges MCX- Multi Commodity Exchange of India. Country’s first
electronic exchange for commodities market. NMCE- National
Multi Commodity Exchange at Ahmedabad. NCDEX-National
Commodity and Derivatives Exchange at Mumbai.

FEMA -1999 Foreign Exchange Management Act -1999 . It extends to the whole
of India. FERA 1973 is replaced by FEMA 1999. FEMA come into
force on the 1st day of June, 2000.

Rupee is strong – Importers Gain and Exporters loss
(Moving from say Rs.45
per USD to Rs.44 to 43
to 42 to 41 …….. etc.)
Rupee is weak Exporters gain and Importers loss
(Moving from say Rs.40
per USD to Rs.41 to 42
to 43 to 44 …….. etc.)
Regulators RBI regulates the money market, SEBI regulates the capital market
and IRDA regulates the insurance sector.
Govt holding in Public 51%
Sector Banks should
not fall below ---- at
any time
Micro credit - SHG Bangladesh Grameena Bank is topper in the world for providing
Financing micro credit to SHG. Head of the Bank – Mohmmed Yunus.

Certificate of Deposit Minimum Rs.1.00 lac and in multiples of Rs.1.00 lacs

Not less than 7 days and not more than 1 year.
Freely transferable by endorsement and delivery.

Right to Information Implemented Wef 12.10.2005, Fee of Rs.10/- payable along with
Act application is must otherwise do not give information.
ATM operations are exempted from RTI Act.

Mergers of RRBs SyndicateBank has amalgamated four RRBs

Malparabha Grameen Bank
Bijapur Grameen Bank
Varada Grameen Bank
Nethavathi Grameen Bank and Formatted Karnataka Vikas Gramin
Bank with its HO at Dharwad.

Securitization - It referes to act of making a loan or mortgage in to tradable security

by issuing bill of exchange or other negotiable paper in place of a

In simple- selling of loan assets.

Import Export (IE) Given by DGFT, Director General of Foreign Trade.

DICGC- Deposit Premium 10 Paisa for every deposit of Rs.100 payable half yearly
Insurance and premium is exempted from service tax.
Claim Rs1,00,000/- per bank ( Principle + Interest)
Individual accounts and Joint accounts with others- separate
protection of Rs.1,00,000/- is available.

Days 15- March- Consumers Day
15- June- World Environment Day
7- April- World Health Day
8- March- International Womens Day.
31-Oct- World Saving Day
23-Dec –Farmers Day in India
HDFC Bank, Centurion HDFC Bank approved the acquisition of Centurion bank of Punjab
Bank of Punjab seal (CBOP) for Rs.9, 510 Crore in the largest merger in the financial
largest banking merger: sector in India.

SEZ or Industrial Park Can be classified as Infrastructure Sector.

Fair Practices Code for Formulated by RBI and not by IBA.
Participatory Note (PN) Is associated with Foreign Institutional Investor. FII.
Participatory Notes are Derivatives. “Participatory Notes are
offshore derivative instruments issued by overseas investor who
have no access direct to the Indian Capital Markets”

“Finacle” banking Developed by Infosys Technologies Ltd

software is
Oldest Stock Exchange Bombay Stock Exchange (BSE) – year 1875
in Asia
SENSEX refers to Sensitive Index of shares prices of 30 scrips listed at BSE.

BANKEX refers to Sensitive Index of shares prices of banking scrips listed at BSE.
Introduced wef 01.01.2002.
NIFTY refers to Sensitive Index of shares prices of 50 scrips listed at NSE.

Dynamic Provisioning The Reserve Bank of India ( RBI) stressed on the importance of
or expected loan loss dynamic or expected loan loss provisioning in order to maintain
provisioning to maintain financial stability. “Dynamic or expected loan loss provisioning can
financial stability contribute to financial stability by recognising the losses early in
the cycle at the time of loan origination by building up buffers in
good times that can be used in bad times, thereby limiting the
consequences during a downturn.

Options It is contract that provides a right but does not impose any
obligation to buy or sell a financial instrument.

Call option : The owner i.e. the buyer, has the right to purchase and
Call option the seller has to obligation to sell, a specified no. of instruments say
shares at a specified price during the time prior to expiry date.

Put option : Owner or the buyer has the right to sell and the seller
Put Option has the obligation to buy during a particular period.

Futures The futures are the contracts between sellers and buyers under
which the sellers (termed ‘short’) have to deliver, a pre-fixed
quantity, at a pre-fixed time in future, at a pre-fixed price, to the
buyers (known as ‘long’). It is a legally binding obligation between
two parties to give/take delivery at a certain point of time in future.
Factoring and Factoring -- financing against bills / invoices of a trading firm
Forfeiting (mostly of exporters) by a financial institution. It is selling of
receivables to the purchaser who is the factor. If the factor is unable
to receive the amount from the purchaser, he has to suffer loss as
there is no recourse to the seller (exporter). When instead of selling,
the receivables are discounted, it is called forfeiting.

Value Added Tax Implemented wef 01/04/2005

(VAT) First time implemented in Haryana.
BANCS Core Banking Solution developed by TCS ( Tata Consultancy
AML 3 i Infotech developed Anti Money Laundering Solutions for Bank
of India.
First Indian Bank to be ICICI Bank
listed on New York
Stock Exchange.
Tier-II capital cannot 100% of Tier-I capital.
Revaluation Reserves Only 45 % of value can be taken for Tier-II capital once in five
SyndShakti SyndShakti- First implemented in Bellary district (K S) wherein
each customer is given a smart card - a biometric enabled
multifunction card. Each customer would be identified uniquely by
finger prints.
First bank to launch HDFC
mobile banking in India
Oldest Public Sector Allahabad Bank
Regulatory Authority Securities and Exchange Board of India (SEBI)
for Capital Market in
IRDA Insurance Regularity and Development Authority. Regularity
Authority for Insurance Sector.
Investment Fluctuation Can be treated as Tier-I capital
Ad Valorem stamp duty In proportion to the value of the instrument. Or as % of value of
means the Instrument.
GETF- Gold Exchange Traded Fund
Gold in demat form and minimum unit of one gm. Pure Gold
99.70% or 99.95% available.

GDR- Global Depository Receipt- Tool used by Indian companies to raise
funds from Foreign Bourses.

IDR - Indian Depository Receipt- Tool used by Foreign companies to

raise funds from Indian Bourses and SEBI is the regulator.
COFEPOSA deals with economic offences.
Green Shoe Option Provision of retention of amount in excess of subscription of
public issue of shares/Debentures/Bonds etc.

Plastic Money Credit Card, Debit Card, Smart Card, SKCC, SKSCC, SLUCC,
SSCC Cards
Our HO Security Dept Is first among all public sector banks to get ISO 9001-2000
Banks in Insurance If CRAR is more than 10%, then only Banks can enter into
Sector Insurance Sector.
Mr. A. K. Khandelwal The Government–appointed High Powered Committee headed by
Committee the Former Bank of Baroda Chairman, Mr. A. K. Khandelwal to
come out with strategies on planning of recruitment and succession
as well as retention of best performers through performance-
linked incentives and grooming such officials for leadership roles.
Black Gold Oil
White Gold Cotton
Yellow Revolution Production of Oil Seeds and Pulses.
Credit Card Central Bank of India is first among Indian Bank to introduce credit
DSB Return To be submitted by HO to RBI under Off Site Supervision
Declaration of Dividend Bank is expected to transfer to statutory reserve fund 25% of profits
by Banks before dividend declaration.

Regulatory Authority Securities and Exchange Board of India (SEBI).

for Credit Rating
National Spot Exchange Online Trading of Agri Produces all over in India. Physical
delivery allowed only in three States i-e Maharashtra, Gujarat and
Karnataka. Promoted by Financial Technologies and NAFED.

Pension Fund The Pension Fund and Regulatory Development Authority

(PFRDA) unveiled a savings account scheme under the New
Pension Scheme (NPS) which would allow investors to enter and
exit at will.
Business Facilitators or As per recent RBI guidelines dtd 24.04.2008 ex staff along with
Business defense personnel & Govt Employees can be appointed as Business
Correspondents Facilitators or Business Correspondents.

The Payment and The Payment and Settlement Systems Act, 2007 (PSS Act, 2007)
Settlement Systems Act, came into force with effect from Aug 12, 2008 with a objective to
2007 provides for the regulation and supervision of payment systems in
India and designates RBI as the authority for that purpose.

Frauds and failure of Is the example of Operational Risk.

CBS system
State Bank of India First Bank to generate captive wind power (Green Energy).

UIDAI- UIDAI- Unique Identification Authority of India- UID Card will

“ADHAR” is Brand be issued by UIDAI. This will help banks for KYC compliance.
ICICI Bank ICICI Bank is the second Indian Bank ( after SBI ) to get a full
fledged banking license in Singapore. Singapore has given an in
principle clearance to ICICI Bank recently to operate as qualified
full bank (QFB) in the country.

Financial Stability and Central Govt. has set up a Financial Stability and Development
Development Council Council whose job would be to monitor conglomerates & improve
(FSDC) condition among financial regulators with a view to prevent future
financial crisis. The FSDC will be super regulator in the financial
sector. Meetings of FSDC are chaired by Finance Minister of India.

Central Electronic Central Electronic Registry-CER- E-Registry of mortgaged home

Registry loans. Establishment of CER has been envisaged under SARFAESI
Act 2002. HL frauds can be avoided.

SEBI, the capital market regulator hikes retail investor limit in initial public offering to Rs.2.00
lacs from Rs.1.00 lacs .

Banks are permitted to use the floating provisions only for contingencies under extraordinary
circumstances for making specific provisions in impaired accounts after obtaining Board’s
approval and with prior permission of RBI.

IndusInd Bank has launched Mumbai’s first solar powered ATM as a part of its Green Office
Project Campgain “ Hum aur Hariyali”

IRDA has stipulated that the mandatory ceding by every general insurer in the country to
National Insurer-GIC will stay put at 10%.

UK Payment council has said that to make payments more efficient no cheques will be issued
or honored in Britain from Oct 2018.

Zeta Analysis is a model for identifying the bankruptcy risk of companies.

Tobin Tax – is tax on foreign exchange transactions that would be applied uniformly by all
major countries to deter speculation on currency fluctuations.

NPV- Net Present Value – NPV gives time value of money. Value of tomorrow’s money as if
stands today.

Number of US banks failure has surpassed the 100 mark in 2012.

Largest bike maker in the world - Hero Honda.

Direct Taxes- IT, Wealth Tax, STT .

Indirect Taxes- Customs, Excise & Service Tax

All the companies must reserve 35% of shares for retail investors while coming out with IPO as
per SEBI guidelines. IPO should be finalized within 12 days from the date of closing and to be
listed on Stock Exchanges within 7 days from the date of allotment. For Retail Investors, limit
has been increased to Rs.2.00 Lacs from earlier Rs.1.00 lacs by SEBI and first public issue was

Prime task for Finance Commission is to decide on the distribution of net taxes of the center
between Union & States. Finance Commission is appointed by President of India.

10% people in India have an insurance cover. 13% have debit cards & only 3% have credit

PIPE - It stands for private investments in public equity (PIPEs). It involves buying stakes by
private equity funds in listed companies. PIPEs have generated extraordinary returns by
applying private equity principles to public investing.

RBI has increased threshold limit for RTGS transactions from Rs.1.00 lacs to Rs.2.00 lacs.

The Reserve Bank of India was nationalized in 1948.

“Euro” is the currency of European Union.

“Growth and Finance” Book written by Dr. C Rangarajan, Ex-Chairman, Prime Minister's
Economic Advisory Council.

Bombay Stock Exchange has proposed to launch SME Exchange.

Mobile Number portability first implemented in Haryana State.

FSDC meetings are chaired by Finance Minister of India.

United Stock Exchange is associated with Currency Futures.

SyndArogya policies up to Rs.5.00 lacs shall be issued by UIICL with out any medical check
up up to entry age of 65 years and all existing renewals shall be done by UIICL up to age of 80
years with out any medical examination.

Business Correspondent appointed by our bank shall open at least 200 a/c s every month.

Interest on Loans & Advances shall not below Base Rate including concessions granted by the
bank if any.

Under Financial Inclusion, RBI Permission is not required for opening the branches.

Finance Commissions set up by the President of India decides the distribution of tax incomes
between the Central and State Govts.

The merger of which of the following two Indian companies took place in recent past which is
termed as “Largest ever merger in India’s Corporate History” ? Reliance Industries and
Reliance Petroleum Ltd.

‘SEPA’. What is the full form of the term - Single Euro Payments Area

Working Group to Review the Business Correspondent Model - Shri P Vijaya Bhaskar Rao

The BlackBerry was created by 23-year-old Greek-Turkish college dropout named Mike
Lazaridis, working out of a one-room tech startup in Waterloo, Canada. The BlackBerry
officially came into India in October 2004.

‘Indira Gandhi National Widow Pension Scheme’ a monthly pension will be given to the
widows. What will be the amount of the pension ? Rs.300/- p m

The Govt. of India allowed the Income Tax Department to set up its centralized IT processing
center in Bangalore.

The Govt. of India introduced Money Laundering Bill 2009. Under the bill which agencies is
empowered to search the premises after the offence is committed and a case is filed ?
Enforcement Directorate.

What is our FDI policy ? Under the extant policy, investments into most sectors fall under the
automatic route. Such investments require no prior permission of the government or any
regulator and the Indian company receiving the foreign investment is only required to intimate
the RBI of any such investment. But some sectors still require prior government approval and
most sectors that require government approval fall within the ‘sensitive’ category.

The following are the instruments of Credit Control in the hands of the RBI - Lowering or
raising the minimum cash reserves maintained by the commercial banks.

Which of the program was launched to further improve the facilities of irrigation in rural India
? National Watershed Development Programme.

Decision taken by the Govt. of India all the Public Sector Banks (PSBs) will be recapitalized
over the next two years so that they can maintain a Capital Adequacy Ratio (CAR) of

Subscribe to the Public Provident Fund any amount not less than Rs. 500 and not more than
Rs. 1,00,000 in a year. Non Resident Indians are not eligible to open an account under the
Public Provident Fund Scheme. Close PPF a/c any time after the expiry of 15 years from the
end of the year in which the initial subscription was made by him,

EL NINO - A warming of the ocean surface off the western coast of South America that
occurs every 4 to 12 years when upwelling of cold, nutrient-rich water does not occur. It causes
die-offs of plankton and fish and affects Pacific jet stream winds, altering storm tracks and
creating unusual weather patterns in various parts of the world

La Nino- It follows an El Nino. It is anti El-Nino or simply a cold event. It is the cooling of
water in the Pacific Ocean.

World’s first zero waste city is under construction in Abu Dhabi called Masdar City. It is to be
completed by 2016 and will be world’s first carbon neutral, zero waste city completely powered
by renewable energy.

The wage ceiling for coverage of employees under the Employees’ State Insurance Act, 1948
has been enhanced from Rs.10,000/- to Rs.15,000/- per month w.e.f. 01.05.2010.

The Payment of Gratuity Act, 1972 has been amended first to cover teachers in educational
institutions and again to enhance the ceiling on gratuity from Rs.3.5 lakh to Rs.10 lakh.

The Ministry of Corporate Affairs is the nodal Ministry in the matter of convergence of
International Financial Reporting Standards (IFRS) and has decided that Indian Accounting
Standards currently followed by the companies in a phased manner as part of the G20

ALCO of the Bank takes care of Market risk.

Annual Stock Audit is mandatory for NPA accounts secured by stock and book debts with the
Real Account balance of Rs 5 crores and above.

MIBOR refers to Mumbai Inter Bank Offer Rate

ASD 8 is a document format for securing advances of the bank and is Confirmation letter for
depositing the original title deeds for securing a loan facility. Always AD 8 is to be stamped
before execution.

A bank issuing a LC has a maximum of 5 Banking days to verify if the documents
presented comply with the terms of the LC.

Indian rupee is freely convertible on current a/c transactions.

Forex Remittances for investment in immovable property is a Capital a/c transaction

ESOP means - Employee Stock Option Plan.

The version of Uniform Customs and Practices for Documentary Credits now in force is UCP

Rajiv Gandhi Equity Saving Scheme 2012.

Who can invest : New retail equity investors ( Resident Indians) with an annual income less
than 12 Lakh.
Investment amount : 50,000 (maximum amount one can invest under the scheme)
Deduction available on : 25,000 (50% of 50,000)
Maximum benefit : .5,000 (investors with an annual income of 10 Lakh fall under the 20%
income tax slab)

Lock in period : 3 years from the date of acquisition (to get a tax deduction over & above
Section 80C)
Section 80CCG – Deduction in respect of investment made under equity saving scheme:
Finance Ministry has introduced new deduction u/s 80CCG upto 25,000/- @ 50% of
Investments in “Rajiv Gandhi Equity Saving Scheme 2012” for assesses (employees) whose
gross total income does not exceeds 12 Lakh.

SHADOW BANKING -The term refers to the practice of banking-like activities performed by
non-banking finance companies, which are not subject to strict regulation. However, these
institutions function as intermediaries between the investors and the borrowers, providing credit
and generating liquidity in the system. Although these entities do not accept traditional.

Public Provident Fund-(PPF)-

The minimum deposit amount is Rs. 500 per annum and the upper ceiling limit is Rs. 1,00,000
per annum. A penalty of Rs. 50 will be levied per year of default, if the customer doesn’t
deposit the minimum deposit amount of Rs. 500 on the completion of the financial year. The
current rate of interest on Public Provident Fund (PPF) is 8.8%, which is compounded annually.
A Public Provident Fund (PPF) account gets matured after the completion of 15 years from the
end of the year in which the account was opened.

A customer can extend the tenure of a Public Provident Fund (PPF) investment for a block
period of 5 years beyond the maturity period by submitting Form H within one year from the
date of maturity. No premature withdrawal is allowed for Public Provident Fund (PPF)
accounts. Only in the case of the death of a customer, their nominee /legal heir can close the
account. Customer can make one withdrawal every year, from the 7th financial year, of an
amount that does not exceed 50% of the balance of the customer credit at the end of the fourth
year immediately preceding the year of withdrawal or the amount at the end of the preceding
year, whichever is lower.

White revolution is associated with Milk production (Late Dr. Verghese Kurien).

Syndicate Bank commenced the Rs. 8000/- (400 shares having paid up value of Rs.20/-.
business with a capital of Authorised Capital Rs.1 lac )

International Bank for Reconstruction and

World Bank Development. IBRD opened wef 01.07.1944
HQ at Washington DC.

Cheque Truncation System Cheque Truncation is an efficiency enhancement

CTS-2010 - Standard" for Cheque initiative in the Payments Systems area, initiated by
Forms – Specifications issued by RBI. RBI.

Truncation is the process of stopping the flow of the

physical cheque, to the drawee bank branch. The
physical instrument is truncated (i.e. movement of
paper cheque is stopped) at some point, en-route to the
drawee branch and an electronic image of the cheque
is sent, along with the relevant information, like the
MICR fields, date of presentation, presenting banks

By amending Sec 6 of NI Act, the physical image of a

truncated cheque and electronic cheques, have been
recognised equal to a paper cheque.

FSDC Financial Stability and Development Council, India’s

apex body of the financial sector.

The main objectives of FRBM Act To reduce fiscal deficit.

are To adopt prudent debt management.
To generate revenue surplus

Business Correspondent is an agent who works on
Business Correspondent behalf of banks on an outsourcing basis for taking
banking services to the hitherto non-banked centers.
Idea has its origin in Brazil.

Financial Stability Unit (FSU) RBI has set up FSU on

Financial Stability Unit (FSU) 17.07.2009 to conduct macro prudential surveillance
of the financial system on an ongoing basis.

Banks have to reimburse erroneous debit arising out of

ATM Debits failed ATM transactions within 7 working days from
the date of receipt of a complaint. If bank failed to do
so, fine of Rs.100 per day is payable.
IDBI Bank Wef 01.10.2004 became Commercial Bank.
Earlier it was Financial Institution.

Gross National Product: It is the Non - Plan Expenditure : It consists of Revenue and
total market value of the finished Capital Expenditure on interest payments, Defense
goods and services manufactured Expenditure, subsidies, postal deficit, police, pensions,
within the country in a given financial economic services, loans to public sector enterprises
year, plus income earned by the local and loans as well as grants to State governments,
residents from investments made Union territories and foreign governments.
abroad, minus the income earned by
foreigners in the domestic market.
Budget deficit : It is the excess of total expenditure
Fiscal Deficit : This is the gap over total receipts, with borrowing not included among
between the government's total receipts. This deficit is funded by borrowing. In other
spending and the sum of its revenue words, it is the amount by which planned expenditure
receipts and non-debt capital receipts. is greater than the expected income for a particular
It represents the total amount of period/ project.
borrowed funds required by the
government to fully meet its
Maharatna Status Mega public sector undertakings of the country have
now got greater financial and operational autonomy
after the government accorded the “Maharatna” status
to these firms to help them emerge as global giants.
The PSUs that would benefit from the decision include

Acquiring of shares A banking company can acquire shares in a company

subject to ceiling not exceeding 30% of the paid up
capital and reserves of the bank or 30% of the capital
of the company whichever is lower.
Return of Capital to Govt of India First bank to return capital to the Central Government
is Punjab National Bank.

Official language policy As per Official language policy for B region, branch
target to reply in Hindi letter received in Hindi is
Banking Codes & Standards Board This Board has been set up as per recommendations of
of India (BCSBI) S S Tarapore Committee.
Tata Consultancy Services TCS is coordinating with Government of India in
Passport Seva Project .
P J Nayak Global financial services major Morgan Stanley has
appointed former Axis Bank Chairman P. J. Nayak as
its new country head and Chief Executive Officer for
China has now became the second Largest Economy of the
World .
Barack Obama is the author of the Book “Dreams from My Father : A
Story of Race and Inheritance” .
M. S. Swaminathan is the author of the book entitled, “To a Hunger-free
“Imagining India” Book is written by Mr. Nandan Nilekani .
Mobile Phones Today 48% India’s population is using mobile Phones.

BASEL Banks are required to maintain a minimum 5.5% in common equity (as against the
current 3.6%) by March 31, 2015 for credit risk + market risk + operational risk on an ongoing
basis (progressively increasing from 4.5% from 1st April 2013), thus by March 31, 2018, banks
have to maintain CRAR of 11.50% (including CCB and Tier 2 capital)

Banks to create a capital conservation buffer (CCB) of 2.5% by 31st March 2018 (starting from
31st March, 2015 at the rate of 0.625% of RWA every year there onwards) with certain
restrictions on pay out of dividends, if not adhered to this ratio.

Tier 1 capital must be at least 7% of RWA on an ongoing basis. Thus within the min Tier 1
capital, Additional Tier 1 capital can be admitted maximum at 1.5% of RWAs by the year
2018.Total Capital (Tier 1 Capital plus Tier 2 Capital) must be at least 9% of RWAs on an
ongoing basis. Thus, within the minimum CRAR of 9%, Tier 2 capital can be admitted max up
to 2% by the year 2018.

FRBM Act 2003:

Fiscal Responsibility and Budget Management act was enacted by the Parliament of India to
institutionalise financial discipline, reduce India’s fiscal deficit, improve macroeconomic
management and the overall management of the public funds by moving towards a balanced

The main objectives of FRBM Act are:-

1. To reduce fiscal deficit.2. To adopt prudent debt management.3. To generate revenue


OMO: Open Market Operations. The buying and selling of government securities in the open
market in order to expand or contract the amount of money in the banking system. Open market
operations are the principal tools of monetary policy. RBI uses this tool in order to regulate the
liquidity in economy.

CAC: Capital Account Convertibility. It is the freedom to convert local financial assets into
foreign financial assets and vice versa. This means that capital account convertibility allows
anyone to freely move from local currency into foreign currency and back, or in other words,
transfer of money from current account to capital account.

‘Swabhiman’, the financial inclusion scheme, comes under the purview of which ministry?
Ministry of Finance.

Which among the following does the RBI not decide? (a) CAR (b) CRR (c) Base Rate
(d) Bank Rate. - Base rate is decided by commercial banks, not the RBI.

Which of the following organizations is the Mutual Fund Market regulator?

(a) AMFI (b) SEBI (c) CIBIL (d) CRISIL. SEBI is also known as Capital regulator or Mutual
funds regulator or Market regulator. SEBI is also created investors protection fund and SEBI is the only
organization which regulate the credit rating agencies in India such as CRISIL and CIBIL.

What is understood by Fiduciary Issue of currency?- The issue of currency notes without
keeping gold or silver as deposit.

‘Fiat Money’ is the currency that a government has declared to be legal tender, despite the fact
that it has no intrinsic value and is not backed by reserves. Historically, most currencies were
based on physical commodities such as gold or silver, but fiat money is based solely on faith.

Collateralized Borrowing and Lending Obligation (CBLO) –

CBLO is an RBI approved money market instrument which can be issued for a maximum tenor
of one year. CBLO as a product has been conceived and developed by Clearing Corporation of
India, CCIL, for the facilitating deployment in a collateralised environment.

Customs Duty is a type of indirect tax levied on goods imported into India as well as on goods
exported from India.

Palakkad district in Kerala was the first district in the country to achieve total financial

Infosys is the first Indian company to trade on NYSE Euronext London and Paris Markets.

BRICS Brazil, Russia, India, China, South Africa.

CAGR - Compounded Annual Growth Rate.

SX40 – Index of India- SX40 is the flagship Index of MCX-SX. A free float based index of 40
large cap - liquid stocks representing diversified sectors of the economy. SX40 is designed to
measure the economic performance with better representation of various industries and sectors
based on ICB®, leading global Industry Classification system from FTSE. The Index is devised
to offer cost-effective support for investment and structured products such as index futures and
option, index portfolio, exchange traded funds, Index funds, etc
SX40 is designed to be a performance benchmark and to provide for efficient investment and
risk management instrument. It would also help in structuring passive investment vehicles.
Index Launch: February 11, 2013. Base Date: March 31, 2010, Base Value:10,000
Index Basket Recasting: Semi-Annually.

US Federal Reserve- Central Bank of Chairman –Janet Yellen ( First Women)

USA recently in news regarding Sub –
Prime Crisis

Multi Commodity Exchange (MCX)

has recently received in principle Launches Currency Futures and equity trading.
sanction from SEBI for

Charge to be created for demat Lien

shares offered to the bank as

British Government has recently ‘Bradford & Bingley ‘ (B&B)

announced nationalization of

Contribution of services sector in 60% approximately.

State Bank of Indore & The Bank State Bank of Indore (merged with SBI) and Bank of
of Rajasthan Ltd. – Rajstan (merged with ICICI Bank) has been recently
excluded from second schedule of RBI Act.

RIL, Largest Gas producer in India Reliance Industries Ltd (RIL) is top Indian Company
as per Forbe Mangazine.

IFRS IFRS-Innovative Financial Reporting Standards- is a

set of accounting standards developed by the
International Accounting Standards Board (IASB).
Global Standards for preparation of financial
statements of public companies.

Wal Mart Wal Mart is top Retail chain in USA.

Samsung Samsung is a Korean electronics company.

Ikea Is Swidish Furniture Company entering in India.

Issue of No-Objection Certificate In case of receipt of request for transfer of borrowal

account, either from the borrower or from a bank /
financial institution, which proposes to take over the
account, the consent or otherwise i.e. objection of the
Bank, if any, will be conveyed within 21 days from the
date of receipt of request.
SWIFT Society for Worldwide Interbank Financial
Telecommunication. It operates a worldwide financial
messaging network which exchanges messages
between banks and other financial institutions.

Tobin tax Suggested by Nobel Laureate economist James Tobin,

was originally defined as a tax on all spot conversions
of one currency into another.

Net owned funds of Rs. 300 crore or above

Infrastructure Finance Companies
minimum credit rating ‘A’ or equivalent of CRISIL,
FITCH, CARE, ICRA or equivalent rating by any
other accrediting rating agencies iv) CRAR of 15
percent (with a minimum Tier I capital of 10 percent).

Minimum of 75 per cent of its total assets should be

deployed in infrastructure loans.

Failed Investment Banker due to Lehmen Brothers

financial crisis in USA

First Asset Reconstruction ARCIL, Sponsored by SBI, IDBI and ICICI Bank.
Company in India
No minimum and maximum limit for doing the
NEFT fund transfer transactions.

State Bank of Saurashtra has been On 13/08/2008

merged with SBI.
If total business of the PSB is more RBI has permitted to appoint three Executive Directors
than 3 lac crores. (ED)

‘Alang’ is associated with Ship Breaking Industry- Place in Gujarat

‘Pipavav’ is associated with Ship Building Industry- Place in Gujarat

Share holding pattern of Regional Central Govt. 50%
Rural Bank (RRB) State Govt. 15%
Sponsoring Bank 35%.
UREM State Govt. notifies the places for deposit of original
title deeds for creation of UREM.

Memorandum of Association Company’s charter defining scope and object of the


Articles of Association Bye Laws or Regulations which controls internal

management and specify powers of the Directors /
Authorised Officers of the company.
SB a/c Interest It is notified by RBI that payment of interest on
savings bank accounts by scheduled commercial banks
Deregulated wef 25.10.2011 would be made on a daily product basis with effect
from April 1, 2010. However, periodicity for payment
of SB interest will remains same. i-e Half yearly -
March & Sept.
Banking Ombudsman Limitation of one year from cause of action.
If interest rate increased during the Falls or decreases.
year, the current market value of
existing Govt. Security
One rupee note is signed by Secretary, Ministry of Finance & issued by GoI.
Securitization Company Minimum capital requirement Rs.200.00 crores.
Securitization is not applicable to Pledge, unpaid
vendors, Aircraft / Vessels and Agri Land.

Stamp duty on sale certificate is applicable as per

respective State Stamp Act Rules.
District Consumer Council Collector is ex –Officio Chairman and minimum two
(is different from Consumer meetings to be held in a year.
Director of Bank and CMD Director of the Banking Company can hold office not
more than 8 years. CMD 5 years.
Lok Adalat Civil disputes can be settled under Lok Adalat
mechanism and monetary ceiling is Rs.20/- lacs.
Unclaimed dividend Unclaimed dividend remaining unpaid or unclaimed
for a period of 7 years from the date of such transfer
shall have to be transferred to ‘ Investor Education
and Protection Fund’ .
Railway Is the biggest Public Sector unit/employer in India.

Autonomy to public sector banks CRAR 9% or more net NPA less than 4% net profit for
last 3 years owned funds of Rs. 300 crores or more.
‘ Project Jharkhand ‘ Launched by HDFC bank and IT enabled financial

Banking Amendment Bill 2012 The cap on voting rights for investors in private sector
lenders will consequently rise to 26 per cent from 10
per cent. In public sector banks (PSU) banks, the cap
on voting rights has been raised to 10 per cent from 1
per cent.
The Competition Commission of India to decide on
mergers and acquisitions.

Life Insurance Corporation To mop up resources through disinvestment, the

finance ministry has upped the limit for the state-run
Life Insurance Corporation (LIC) to buy equity stakes
in companies up to 30%. notification was issued to
allow LIC to hold up to 30% in listed/unlisted
companies against the current cap of 10%. Paid up
capital of the company.

Computer Awareness -
“Please refer to CBS Fast Paths and various Product Codes without

Li Fi Li Fi is a wireless optical networking technology that uses light-

emitting diodes (LEDs) for data transmission.
Benefits of LiFi:
 Higher speeds than Wi-Fi.
 10000 times the frequency spectrum of radio.
 More secure because data cannot be intercepted without a clear
line of sight.
 Prevents piggybacking.
Cyber Forensic India’s first Cyber Forensic Laboratory (CFL) was inaugurated on 11
Laboratory August, 2013. This CFL has been established at Tripura High Court
at Agartala.
Guardian Microsoft India introduced “Guardian” a new safety application.
Finacle 11E A new Advanced universal banking solution that simplifies banking
operations launched by Infosys is “ Finacle 11E”.
KitKat KitKat is the name given to the new Android 4.4 operating system.
Byte Eight digit binary number is called a byte.

BASIC Basic can be used for scientific and commercial purpose. FORTRAN
is not a programming language.
Which software giant Microsoft
is to buy Nokia
Blue tooth 'Blue tooth' technology allows - Wireless communication between
Meghraj is cloud computing project by Govt. of India.
Android Android is a operating system.
Windows New version “Windows 8.1”
e-inclusion Computer Literacy of Rural Womens and SC Womens

Twitter & Face Book Twitter” the popular phenomenon of social networking, has been
named the “Top English Word” of the year 2009. In 2010 “ Face Book
‘ has became most popular social networking website.
Operational Risk Risk arising from failure of computer system and loss of data is
operational risk.
Nano ‘Nano’ stands for one billionth part.
Bug An error in software designing which can even cause a computer to
crash is called “bug”.
Debugging The process of eliminating pro-gramming faults is called “debugging.

Data Encryption Data encryption means protecting data in data communication system.
COBOL Is a business language
AKSHARA Is a Hindi software
ALU Part of processor which performs mathematical calculations.

5th Generation Feature is artificial intelligence

Spam The unwanted or non-requested e-mails are called “spam”.

Hacking Cyber crime.

Black hats – Professionals who spend all their time attacking other
White hats – Specialists defending systems
Grey hats – Non professionals who hack as hobby and out of

Firewall Technology Software that restricts the access to and from network and is designed
to protect from outside intrusion is called ‘ Firewall Technology ‘.

In computer system , Securing the Data.

security is important

SMARTQUILL is Computer Pen

PIN in ATM is Personal Identification Number, 4 Digit

ISDN Integrated Services Digital Network

IDRBT Institute for Development & Research in Banking Technology

at Hyderabad.

PARAM series of The super computer manufactured in India by CDAC, Pune is

Super Computers PARAM, PARAM 10000 and PARAM Padma . Now, they are
developing Maha Param Padma.

Digital signatures A coded confirmation in electronic form attached to an electronic

means: record.

Cheque TruncationImages of cheques to be preserved for 8 years. A centralised agency

per clearing location will act as image warehouse for banks. Physical
Dr. R. B. Barman cheque is truncated within collecting bank -- at which point within the
Committee bank is left to the discretion of the bank -- it is the responsibility of the
collecting bank to verify that physical cheque is prima facie a genuine

e-Commerce Sale and purchase effected through Internet.

Phishing Phishing are attempts made by Individuals to obtain confidential

information from you by falsifying their identity.

Is Smart Card used for travel in Bus and Railway in Mumbai.

Go Mumbai Introduced by Kaizan Automation Pvt Ltd.

FINO is Biometric Smart Card introduced by Financial Information

FINO and Network Operations Ltd.
Biometric means where the security uses the fingerprints of the person
to allow access to the machine or room.

Violation of Corporate Governance norms.

Satyam Computers Corporate fraud case.
Debit Card Buy now and pay now. Immediately a/c is debited.
Credit Card Buy now and pay later.

GSM Global System for Mobile Communication

CDMA Code Division Multiple Access

The majority of Insiders
computer crimes are
committed by.
The common name Spoofing .
for the crime of
stealing passwords is
Malicious Software is as Malware
e-mail virus. In 1999, the Melissa virus was a widely publicized.

Trojan Horse A program that performs a useful task while simultaneously allowing
destructive acts is called as Trojan horse.

Cracking Refers to electronic trespassing or criminal hacking

Biometrics is the measurement of things such as fingerprints and retinal scans

used for security access.

Spybot is the name of an application program that gathers user information

and sends it to someone through the Internet.

3G/4G Third Generation / Fourth Generation

IFSC Code Stands for ‘Indian Financial System Code’ 11 Digit Code.

GEFU Stands for ‘Generic External File Upload’

Search Engine Programs that help in locating a website

UTR number Denotes ‘Unique Transaction Reference number’.
Modem Modem stand for Modulator demodulator
“RUPAY” “RuPay” is the name given to ATM Card to be launched by National
Payment Corporation of India (NPCI) for no frill a/c holders in
association with Banks.
Travel Cards TATA Travel Cards- a prepaid card in 9 currencies launched with
AXIS Bank.
AKASH. Aakash, the world’s lowest priced (Rs 2,250 per unit) touch-screen
computing and internet access device, which will allow people with
Akash is a cheap tablet humble means a chance to access the same set of web information
PC which the rich access through more sophisticated devices, was
launched on October 5, 2011. To start with, the device will be made
available to students at 50% subsidy (Rs 1,125).

Datawind, is designing, developing and manufacturing Aakash in

collaboration with IIT-Rajasthan.

Kim Jong –II Kim Jong –II is a Malware in the name of North Korian Leader.

Information Information Technology Act came into existence in 2000.

Technology Act
World’s first Scientists in the US claim to have developed the world’s first
‘biological biological computer that is made from bio-molecules and can decipher
Computer- images encrypted on DNA chips.

The K Computer A Japanese supercomputer has broken its own record as the world’s
fastest machine by performing 10 quadrillion calculations per second.
The K Computer, which has more than 88,000 central processing
units—the computer’s brain—compared with fewer than four in the
average desktop, smashed its own record of just over 8 quadrillion
calculations during an experiment in October 2011.

‘Caffeine’ Google unveiled a new version of its search engine called ‘ Caffeine’.

IMPS Interbank Mobile Payment Service is an instant interbank electronic

fund transfer service through mobile phones. Both the customers must
have MMID (Mobile Money Identifier Number).

Various Important Committees-

Saraf Committee RTGS payment system
Kapoor Committee Simple application for SSI
R V Gupta Committee Agriculture and SKCC
C B Bhave Committee Dematerialization
K B Shere Committee Electronic Fund Transfer
C Rangarajan Committee Computerization
Chairman: Shri Deepak Mohanty The Working Group on Balance of Payments
Manual for India
Vaghul Committee Money Market
Goiporia Committee Customer Service
Narsimhan Committee Debt Recovery Tribunals (DRT)
Gangadharan Committee Bank Mergers
Mitra Committee Due Diligence and Legal Compliance and Bank
Malegam Committee was appointed by the RBI, is looking into the
regulation of Micro Finance Institutions.
Rajan Committee On financial reforms
Ghosh Committee Recommended for obtaining photo of depositors
Shetty Committee Syndication of Advances.

Dr. R B Barman Committee Cheque Truncation
S S Tarapore Committee Capital Account Convertibility
Abhijeet Sen Committee Modalities of Commodity Trading
Dr. S A Dave Committee SEBI Mutual Fund Advisory Committee
Raghuram Ranjan Committee On Financial inclusion
Deepak Mohanty Committee Chairman of RBI Panel to review BPLR
structure, recommended introduction of base
rate system.
Naresh Chandra Committee 2003 & Irani Limited Liability Partnership Act 2008 .
Committee 2005. Implemented wef 09-01-2009 as per
recommendations of these committees
Mr. A. K. Khandelwal Committee Recruitment and succession as well as retention
of best performers through performance-linked
incentives and grooming such officials for
leadership roles.
P. Vijaya Bhaskar Rao Working Group to Review the Business
Correspondent Model.
Shri V. K. Sharma Committee Interest Rate Futures. And also
Working Group to Review the Credit Guarantee
Scheme of the
Credit Guarantee Fund Trust for Micro and
Small Enterprises.
Shri P. Vijaya Bhaskar Branch Authorisation Policy.
Dr. K. P. Krishnan Report of the Committee on Comprehensive
Regulation of Credit Rating Agencies.
Title Chairman

Report of the Working Group to Review the existing prudential

Shri B. Mahapatra
guidelines on restructuring of advances by banks/financial institutions

Report of the High Level Steering Committee for Review of

Dr. K.C. Chakrabarty
Supervisory Processes for Commercial Banks

Report of the Working Group on Savings during the Twelfth Five-Year

Dr. Subir Gokarn
Plan (2012-13 to 2016-17)

Report of the Committee to Re-Examine the Existing Classification

and Suggest Revised Guidelines with Regard to Priority Sector Shri M V Nair
Lending Classification and Related Issues

Report of the Expert Committee on Licensing of New Urban Co-

Shri Y.H. Malegam
Operative Banks

Working Group on the Issues and Concerns in the NBFC Sector Usha Thorat

Report of the Committee to Review the Facilities for Individuals under
K. J. Udeshi
Foreign Exchange Management Act (FEMA), 1999

Report of the Committee on Customer Service in Banks M. Damodaran

Report of the Working Group on Securing Card Present Transaction Gowri Mukherjee

Report of the Working Group on Reporting of OTC Interest Rate and

Shri P Krishnamurthy
Forex Derivatives

Report of the Working Group on Introduction of Financial Holding

Smt. Shyamala Gopinath
Company Structure in India

Report of the Working Group on Operating Procedure of Monetary

Shri Deepak Mohanty

High Level Committee for Preparation of the Information Technology

Dr K C Chakrabarty
Vision Document 2011-2017

Report of the Internal Group on Introduction of Credit Default Swaps

R.N. Kar
for Corporate Bonds

Working Group on information security, electronic banking,

Shri G. Gopalakrishna
technology risk management, and cyber frauds

Report of the Working Group on Balance of Payments Manual for

Shri Deepak Mohanty

Report of the Working Group to Review the Credit Guarantee Scheme

Shri V. K. Sharma
of the Credit Guarantee Fund Trust for Micro and Small Enterprises

Report of the Committee on Comprehensive Regulation of Credit

Dr. K.P. Krishnan
Rating Agencies

Report of the Group to review the extant Branch Authorisation Policy Shri P.Vijaya Bhaskar

Report of the Working Group on Benchmark Prime Lending Rate

Shri Deepak Mohanty

Report of the High Level Committee to Review Lead Bank Scheme Usha Thorat

Report of the Working Group to Review the Business Correspondent Shri P Vijaya Bhaskar
Model Rao

Report of the High Level Group on Systems and Procedures for

Currency Distribution Usha Thorat

Report of G20 Working Group on Enhancing Sound Regulation and Dr. Rakesh Mohan and
Strengthening Transparency Mr. Tiff Macklem

Report of the Committee on Financial Sector Assessment Dr. Rakesh Mohan

Report of the High Level Committee on Estimation of Savings and

Dr. C. Rangarajan

Report of the Technical Advisory Group on Development of Housing

Prof. Amitabh Kundu
Start-Up Index in India

Report of the Committee on the Global Financial System (CGFS) on

Dr. Rakesh Mohan
Capital Flows and Emerging Market Economies

Task Force For Diamond Sector Shri A.K. Bera.

Report of the Working Group on Defraying Cost of ICT Solutions for

Shri G. Padmanabhan

Report on Interest Rate Futures Shri V.K. Sharma

Report of the Internal Working Group to Study the Recommendations

Shri K.U.B. Rao
of the NCEUS Report

Report of Working Group on Rehabilitation of Sick SMEs Dr. K. C. Chakrabarty

Report of the Working Group to Examine the Procedures and

Shri. C.P. Swarnkar
Processes of Agricultural Loans

Report of The Working Group on Preparing Guidelines for Access to

Shri. R. Gandhi
Payment Systems

Report of the Committee on Fuller Capital Account Convertibility S.S. Tarapore

Recalled questions of previous exams- (Please update the
answers whereever required due to recent changes)

□ When Ombudsman’s award is accepted by the customer, the bank is to implement the
award within : 30 days.
□ Corporate Debt Restructure system is not applicable for : Single lender accounts.
□ Real Time Gross settlement system takes care of which risk : Systemic risk and settlement
□ Loan assets are classified by the banks on the basis of : By status of security
□ Under SARFAESI Act 2002 the banks give notice for payment of due amount to the
borrower / owner of charged assets within days, otherwise action will be initiated u/s
13(2) of the Act : 60 days
□ The minimum & maximum period of certificate of deposit is : 7 days, 12 months
□ Banks print cheque books having similar particulars. The format of cheque is prescribed
by which Act : It is a practice
□ Which crossing takes away the feature of assumption of defective free title available to
the transferee : Not negotiable
□ Bearer uncrossed cheque can be paid to whom : To the bearer
□ The increasing foreign exchange reserves in India are costly because : Funds are idle and
there is fluctuation risk
□ Who is appointed to tackle public complaints against the public authorities : Ombudsman
□ What is NOSTRO: A bank’s account abroad with another bank
□ On, other than a negotiable instrument, what is the time period for payment of stamp duty,
if the document is executed outside India : 3 months
□ Within priority sector, a retail trader other than in essential commodities can be allowed
an advance up to : Rs.20 lac
□ FCNR (B) deposit can be accepted by banks in currencies : 6
□ May I help you counter is to be provided by bank branches other than : Small branches
□ Interest subvention on SME exporters is available to the extent of : 2%
□ A firm is allowed a limit of Rs.1.40 lac at 30% margin. It wants to avail the limit fully.
How much will be the value of security : Rs.2 lac
□ Statutory Liquidity Ratio provisions for banks are as per Section of : 24,
Banking Regulation Act 1949
□ What is the maximum loan that can be allowed to a dealer in cattle feed / poultry feed,
within priority sector : Rs.40 lac
□ An NRI can open a joint account with a resident in case of accounts : Non-resident
□ What type of charge is applicable on loan against term deposits in a bank : Assignment
□ RBI keeps on changing repo / reverse repo rate / CRR with the objective of : Regulation
of liquidity to control inflation
□ Garnishee Order is not applicable on : Un-used cash credit or overdraft limit
□ What is the periodicity for submission of R-Returns to RBI : Fortnightly
□ The facility of nomination is not available to Trust account because it is account :
฀ `

□ A person wants to open an account which his wife should be able to operate only after his
death. What type of account he should open : Former or survivor
□ In B region, the reply to letters in Hindi is to be given to the extent of % : 100%
□ Within priority sector target of 40% of ANBC or CEOBE, whichever is higher, the sub-
target for weaker section is : 25%
□ In case of a jointly operated joint account, the nominee can obtain payment, when : none
of the account holder is alive
□ Call money deposit is part of the sector : Organised sector
□ The long term liability to tangible net worth ratio implies : Long term solvency of the firm
or capacity of the firm to pay long term debt.
□ Current ratio implies : Capacity of the firm to pay current liabilities.
□ Working capital requirement of a firm is required to be met through : Short term sources
and surplus of long term sources over long term uses
□ Star series notes relate to : Defective notes
□ The target for DRI advances is : 1% of previous year’s outstanding loans
□ Who cannot become a partner as per Supreme Court judgement : HUF
□ What is the maximum period for which an account classified as sub-standard, can remain
: 12 months
□ A company wants to electronically pay the dividend to large no. of its shareholders, which
include small amounts also : Electronic Clearing Services – Credit (ECS-Credit)
□ The terms used for hiding money to avoid tax is : Money laundering
□ A cheque is written in different hand-writings and different inks : It will be paid
□ Opening of non-resident accounts by has been allowed by RBI : RRBs
□ Bailment of goods by a person to another person, to secure a loan is called : Pledge
□ When mortgage is created by a person by deposit of title deed orally, it is called
mortgage : Equitable
□ Which crossing is not a general crossing : When name of bank is written within or without
parallel lines.
□ Buy now and pay later is the facility available under : Credit card
□ A financial statement that provides information regarding where the funds have come and
where these have been used, is called : Funds flow statement
□ Who can open NRE account : NRI
□ The minimum capital adequacy ratio implemented in India, by RBI is % and as per
Basel II recommendations it is % : 9%, 8%
□ A mandate holder for a current account has died and a cheque signed by him is presented
for payment after his death : The cheque shall be paid, if not dated subsequent to date of
death or prior to the date of mandate.
□ The true owner of a cheque has been deprived his right by collection of the cheque for a
different person. This is called : Conversion
□ A bank branch receives a counterfeit note of Rs.1000, which customer wants back. What
the bank should do : To be impounded and not to be returned in any circumstances.
□ Banks provide term loans and deferred payment guarantee to finance capital assets like
plant and machinery. What is the difference between these two : Outlay of funds.
□ Islamic banking has the features of : Conservative banking
□ When rate of interest is expressed by adjusting the impact of inflation, this is called
: Real rate of Interest

□ For the purpose of creation of equitable mortgage, the place for deposit of the title deed is
notified by : State Govt.
□ A prudent investor makes investment in shares on the basis of : Price-earning (PE) ratio
□ When the rates are rising, the growing economy : Gains
□ For FCNR (B) deposits, the exchange risk is born by : Bank, accepting such deposit.
□ As per recent RBI/Govt. guidelines, pensioners can open account jointly with: with
spouse, to be operated as either or survivor.
□ Amount of maximum loan given to micro and small enterprises are covered under
CGFTMSE scheme : Rs.100 lac
□ Apiculture relates to : Bee-keeping
□ A cheque written in different inks and handwriting is presented, for payment : it will be
paid if otherwise in order
□ Which of the following forms will be used for allowing exemption to a depositor aged 61
years : Form 15 G
□ An enterprise will be treated as medium enterprise providing services, if the investment in
is above Rs.2 cr and up to Rs. _: equipment, 5 cr.
□ For acquiring securities charged to the bank under SARFAESI Act, a notice of days is
required to be sent to the owner of the securities: 60 days
□ The drawer of a cheque wants that the endorsee should not get a defect free title when he
receives an endorsed cheque. What type of crossing would be required : Not-negotiatiable
□ The crossing on a cheque is required to be cancelled. Who can do so: Drawer
□ A cheque signed by an agent is presented for payment, after his death. What will the
paying bank do : Cheque will be paid in normal course if it is not dated subsequent to date of
his death.
□ A bank can sell its NPA account to another bank, if the NPA is held by the seller bank
with it for month as NPA : 24
□ Unutilised overdraft limit of a borrower is available and a garnishee order is received :
Order is not applicable
□ In educational loan no collateral security or 3rd party guarantee will be obtained, if the
amount of loan is maximum up to: Rs.4 lac.
□ A loan associated with a short duration crop, becomes sub-standard after remaining
special mention account for a period of : two crop seasons
□ Interest subvention of 2% is available to banks from Govt. when the short term production
loan up to Rs. lac in agriculture is allowed by banks at % rate of interest to
farmer: 3 lac, 7%
□ Under liberalized remittance scheme what is the maximum amount that can be remitted
by a resident person abroad for unspecified person: $ 2.50 lac in a financial year.
□ Weaker persons of the society available deposit and loan services from banks, which is
called : Financial inclusion
□ Customer day is observed by banks on th of the month : 15
□ Minimum no. of days for which term deposit can be made by banks : 7 days
□ Appeal against the award given by the Ombudsman can be made by the bank within
days of date of : 30 days, receipt of acceptance from the customer.
□ The format of cheque is prescribed in which Act : It is only a practice.

□ If a fraud takes place in a bank branch. Report is sent to the controlling office on form :
□ The amount in a cheque is written differently in words and figures and amount written in
words is higher of the two : Amount written in words will be paid.
□ While paying a bearer cheque, signatures are obtained on the back side of the cheque.
Why ? : As evidence of payment
□ Bank note which is misprinted by RBI is replaced by issuing a note : Star series
□ In CDR category-1, what type of loan accounts are eligible : Standard & sub-standard.
□ Sales / debtor ratio is called ratio. It indicates : Debtor-turnover, efficiency of
collection of debtors.
□ Current ratio indicates : Capacity of a firm to meet its current liabilities.
□ Conversion means : unauthorized intervention in the property of another person
□ As per Official language policy for B region, branch target to reply in Hindi letter
received in Hindi is : 100%
□ Provision for standard accounts in agriculture and SME accounts is to be made at : 0.25%
□ What is the right of nominee in case of term deposit that has not matured : To obtain
premature payment and not raise loan against the security of such term deposit
□ Preshipment credit is available in which type of letter of credit : Red clause LC.
□ The quarterly financial results of companies and banks are to be declared / published
under directions provided by : SEBI
□ RBI injects liquidity through : Repo
□ What is full form of FRBM : Fiscal Responsibility & Budget Management Act
□ Relationship between bank and customer in case of goods left by mistake in custody of
the bank: Trustee & beneficiary
□ Priority sector target for foreign banks having less than 20 branches for 2015-16: 32% of
□ NSC pledged with post office with nomination in favour of XYZ. Bank’s claim against
these NSCs : Will have priority
□ Legal status of nominee is that of a : Trustee for legal heirs
□ M, a minor admitted for benefits in a firm wants to withdraw from the firm on attaining
majority. How much time is available to him to do so : 6 months from date of majority or 6
months from date of information to him that he was admitted for benefits, whichever is later.
□ Loan to minor can be given in the following case (a) against DBD (b) against LIC policy
(c) in the name of minor (d) in the name of father : in the name of father
□ Who cannot be a partners (a) HUF (b) illiterate (c) Blind person (d) company : HUF
□ Money to be deposited by A in the account of B. A has informed that B has become
insane : can be deposited with consent of the family members (i.e. guardian)
□ Mortgagee enjoys the income of the mortgaged property in case of which mortgage :
□ Hypothecation becomes pledge : when goods are given for possession to the bank, by the
□ Which type of fraud case is not to be reported : Theft and burglary.
□ There is excess cash with the cashier while closing the cash balance in the evening. It is to
be deposited in : Sundries account excess cash received account (credit balance).
□ Which document is required to be attested (witnessed) (a) mortgage deed (b) pledge
agreement (c) Hypothecation agreement : Mortgage deed

□ No. of bank branches in India is (a) above 40000 (b) above 50000 (c) above 60000 (d)
above 100000 : Above 100000
□ A, B and C want to open a joint account with the provision that after death of any of them,
the money should not be paid to any legal heir, what mode of operation should be opened :
Either or any of them.
□ ECB can be raised under automatic approval by (a) companies (b) firms : Companies
□ Borrowing power of Board of Directors is described in: Articles of Association.
□ Doctorine of Ultravires borrowing relates to : Borrowing by a company for an activity,
which it is not authorized to undertake as per its Memorandum of Association
□ The no. of members in a SHG in normal cases : 10-20
□ Authorised capital is Rs.10 lac. Paid up capital Rs.6 lac. The loss of previous year is Rs.1
lac. Loss in current year is Rs.2 lac. The tangible networth is : Rs.3 lac
□ Net working capital is Rs.80000. Current ratio is 3:1. The current assets are : 120000
□ Right to retain goods is called : Lien
□ For obtaining loan against shares, the Charge on shares : Lien
□ A director of the bank wants to raise loan from your bank against (a) FDR of other bank
(b) share of same bank(c) surrender value of Life Policy. Loan can be given against :
Surrender value of Life Policy.
□ Bill of lading, Railway Receipt are negotiable instruments under (a) NI Act (b) Sec 3 of
Transfer of Property Act (c) Sec 137 of Transfer of Property Act (d) Sale of Goods act : C
□ Keeping goods in safe custody is as per provisions of (a) NI Act (b) Indian Partnership
Act (c) Indian Contract Act : C
□ No dues certificate in case of agricultural advances is exempted up to a loan of: Rs.50000
□ Liability of a coparcener in case of loan raised by HUF is : Restricted to his share in HUF
□ In KYC guidelines, the small account where simple KYC is applicable are those account
where the amount deposited in the account is restricted to (a) Rs.50000 (b) Rs.1 lac : Rs.1 lac
□ In case of SMEs, the registration is mandatory in case of (a) medium enterprises in
servicing (b) small manufacturing enterprises (c) manufacturing medium enterprises : C
□ What is the maximum amount of loan for obtaining guarantee under CGTMSE : Rs.100
□ Loan system of credit delivery is not applicable in case of : Software industry
□ To sell an NPA, the account must remain in the books of seller bank : for 24 months as
□ One of these is an indirect rate (a) one $ = Rs. 39.56 (b) one pound = Rs. 89.56, (c) one
yen = Rs. 0..30 (d) Rs.100 = $ 2.60 : D
□ Which crossing is not recognized by NI Act (a) Special (b) payee’s account (c) not
negotiable : B
□ Which among the following can open an Resident Foreign Currency account (a) NRI (b)
Resident (c) Erstwhile NRI now resident (d) none : C
□ A loan document is signed by one partner on June 15, 2007, by 2nd partner on June 21
and by 3rd partner on June 29. The period of limitation will start from : June 30, 2007
□ In CAMLES, the word C stands for : Capital Adequacy Ratio
□ A partner wants to retire from the firm XYZ. He has to (a) get consent of other partners
(b) has implied authority to retire (c) has to give public notice (d) can retire when desired by
him by giving notice to other partners : A

□ Service Area approach guidelines withdrawn by RBI except of Govt. sponsored Scheme
as per recommendations of : VS Vyas Committee
□ Govt. shareholding in public sector banks cannot be below : 51%
□ For micro & small enterprise, the value of is excluded while calculating the value
of plant and machinery or equipment : Land & building.
□ Registration of partnership firm is not compulsory but banks prefer registered firms
because (a) they can file suit against them (b) creditors can file suit against them (c) they can
file suit against their debtors : C
□ The limitation period u/s 138 of NI Act begins from : Date of cause of action
□ Ombudsman can ignore the case of complaint where (a) advocate of applicant has
appealed (b) complaint is of frivolous nature : B
□ A cheque is issued by a company as “pay yourselves”. A clerk from the company comes
and signs on behalf of the company and requests for preparation of a demand draft : Cannot
be prepared.
□ Internal rate of return is : A discount rate, at which the net present value of a project is
□ Small Service industry investment in Equipments : above 10 lakhs but upto 2 crore
□ Hypothecation defined under which act : SARFAESI Act.
□ NPA Can Be Sold By Keeping For How Many Days : 2 Years
□ Remittance of FCNR(B) proceeds to III Party abroad – If AD satisfied, these can be made
on the request of the depositor.
□ Oversold position will give loss when the value appreciating
□ Sengupta committee related to : Private sector contribution to defence sector
□ Radhakrishanan Committee related to : Agriculture indebitedness.
□ The committee recommended concurrent audit : GHOSH COMMITTEE
□ Restructured a/c classified standard if the operation in the account is satisfactory for a
period of : one year
□ In case of failure of a customer to meet its commitment in settling his dues in time will
come under which type of risk : Settlement Risk
□ Which approach does not Operation Risk : Internal risk assessment based
□ When an account becomes NPA and realizable value of security is the account is
directly treated as loss asset : <10 %
□ ROI on Adhoc PCL : Same Rate Of Normal PCL
□ Un Registered Partnership Firm - What is the repercussion: Firm can sue the others
□ Whether Minor can nominate ? no
□ What charge to be created for demat shares with bank as security : Lien
□ Microsoft has instituted its base/ facility office at: Hyderabad
□ What is the position of a Nominee ?: The money will be paid to nominee after death of
□ Methodology of Waiver/Remission of loan of Director of the bank: After permission of
□ Under LRS how much money a resident can remit in year : USD 250000 in a financial
□ For the purpose of Medical Treatment, how much amount can be remitted freely : USD
□ How much amount a company can invest abroad : 400% of net worth


Santosh D. Bagale

Chief Manager, Talegaon Dabhade Branch.


Mobile-09969573721 ,

e-mail –