1.

What is the criterion to consider any bank as a Public sector bank? Give four examples of 2nd Generation Nationalized Banks?

Ans:The stated reason for the nationalization was to give the government more control of credit delivery. 2. In which year the 1st batch of nationalization took place and mention Five Banks names which are nationalized in the 1st batch? Ans: The nationalisation of banks in India took place in 1969 by Mrs. Indira Gandhi the then prime minister. It nationalised 14 banks then. These banks were mostly owned by businessmen and even managed by them.
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Central Bank of India Bank of Maharashtra Dena Bank Punjab National Bank Syndicate Bank Canara Bank Indian Bank Indian Overseas Bank Bank of Baroda Union Bank Allahabad Bank United Bank of India UCO Bank Bank of India

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3. What are the subsidiaries of RBI and explain the basic role of at least two organizations? 4. 5. What are the important principles of lending to be followed to make a safe lending? When State Bank of India was established and give the names of associates of SBI?

6. What is the criterion to consider any bank as a Public sector bank? Give four examples of 2nd generation Nationalized Banks? 7. What is meant by a foreign bank and give two examples of foreign banks operating in India? 8. What are the subsidiaries of RBI and explain the basic role of at least two organizations?

9.

What is a Private sector bank and Give four names of private sector banks?

10. How a Recurring Deposit operates and what are the advantages and disadvantages of a Recurring Deposit consider an example? 11. Explain savings bank and operations in a savings bank account? The Bank before opening any deposit account will carry out due diligence as required under "Know Your Customer" (KYC) guidelines issued by RBI and or such other norms or procedures adopted by the Bank. If the decision to open an account of a prospective depositor requires clearance at a higher level, reasons for any delay in opening of the account will be informed to him and the final decision of the Bank will be conveyed at the earliest to him. The account opening forms and other material would be provided to the prospective depositor by the Bank. The same will contain details of information to be furnished and documents to be produced for verification and or for record, it is expected of the Bank official opening the account, to explain the procedural formalities and provide necessary clarifications sought by the prospective depositor when he approaches for opening a deposit account. Savings Bank Accounts can be opened for eligible person / persons and certain organizations / agencies (as advised by Reserve Bank of India (RBI) from time to time). These accounts are designed to help the individual (personal customers) to inculcate the habit of saving money and to meet their future requirement of money. The amounts can be deposited/withdrawn from these accounts by way of cheques/ATM. It helps customers to keep minimum cash at home besides earning interest. In addition to the due diligence requirements, under KYC norms the Bank is required by law to obtain Permanent Account Number (PAN) or General Index Register (GIR) Number or alternatively declaration in Form No. 60 or 61 as specified under the Income Tax Act / Rules At the request of the depositor, the Bank will register mandate / power of attorney given by him authorizing another person to operate the account on his/her behalf. The term deposit account holders at the time of placing their deposits can give instructions with regard to closure of deposit account or renewal of deposit for further period on the date of maturity. In absence of any written instructions about the disposal of the term deposit, the Bank reserves the right at its discretion to renew the deposit along with accrued interest thereon at prevailing rates of interest for a similar tenor of the deposit which has matured. A statement of account will be provided by the Bank to Savings Bank as well as Current Deposit Account Holders periodically as per terms and conditions of opening of the account. Passbook facility is avaliable to all savings account holders free of

cost Nomination Facility: Bank offers nomination facility in deposit accounts, safe deposit lockers, articles in safe custody,etc. Nomination facility is available on all deposit accounts opened by the individuals. Nomination facility is available on all deposit accounts opened by the individuals. Nomination is also available to a sole proprietory concern account. Nomination can be made in favour of one individual only. Nomination so made can be cancelled or changed by the account holder/s any time. While making nomination, cancellation or change thereof, it is required to be witnessed by a third party. Nomination can be modified by the consent of account holder/s. Nomination can be made in favour of a minor also subject to other major individual being named appointee(s) during the minority period. The Bank recommends that all depositors avail nomination facility. The nominee, in the event of death of the depositor/s, would receive the balance outstanding in the account as a trustee of legal heirs. The depositor will be informed of the advantages of the nomination facility while opening a deposit account. The deposit accounts may be transferred to any other branch of the Bank at the request of the depositor.

12. How a Recurring Deposit operates and what are the advantages and disadvantages of a Recurring Deposit? 13. What is the importance of Reserve Bank of India and give Two functions of RBI? 14. What is LPG and how that impacted the banking system in India? 15. Expand i. CRR

ii.SLR iii.IDBI iv. HDFC v. vi. vii. viii. ICICI IFCI SEBI BSE

16. What is a Cheque and differentiate a Cheque and a Draft? Definition of Cheque: "Cheque is an instrument in writing containing an unconditional order, addressed to a banker, sign by the person who has deposited money with the banker, requiring him to pay on demand a certain sum of money only to or to the order of certain person or to the bearer of instrument." Difference Between Cheque and Draft:  the bank takes a advance from the person who issues a draft but at the time of check the bank didnt take amount to issue a cheque.the cheque may be bounce when the balance is nill in issuer account.  An important difference between the two is that a draft can be issued only when the amount of the draft is submitted to the bank. Whereas a cheque can be issued irrespective of whether there is balance in the issuer's account or not.  Incase there is no balance in the issuer's account at the time when the cheque is presented to the bank for encashment, the cheque will get bounced.  A check is your personal check, where the money will be taken out of your account.  A bank draft can be thought of as a 'bank's check', i.e. money will be paid by the bank who redeems the draft. This is very similar to money-order for practical purpose. The bank therefore takes the money in advance from the person who issues a draft and in return gives a 'bank check/draft' for that amount. Draft is therefore more reliable form of accepting payment as the personal check may bounce, but the draft will not.

17. What is a scheduled commercial bank? Ans:The commercial banking structure in India consists of:
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Scheduled Commercial Banks in India Unscheduled Banks in India

Scheduled Banks in India constitute those banks which have been included in the Second Schedule of Reserve Bank of India(RBI) Act, 1934. RBI in turn includes only those banks in this schedule which satisfy the criteria laid down vide section 42 (6) (a) of the Act. As on 30th June, 1999, there were 300 scheduled banks in India having a total network of 64,918 branches.The scheduled commercial banks in India comprise of State bank of India and its associates (8), nationalised banks (19), foreign banks (45), private sector

banks

(32),

co-operative

banks

and

regional

rural

banks.

"Scheduled banks in India" means the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955), a subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959), a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), or under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980), or any other bank being a bank included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934), but does not include a co-operative bank". 18. To become a scheduled bank, what is the minimum required paidup capital? Ans:Scheduled Banks in India constitute those banks which have been included in the Second Schedule of Reserve Bank of India(RBI) Act, 1934. RBI in turn includes only those banks in this schedule which satisfy the criteria laid down vide section 42 (6) (a) of the Act. The banks included in this schedule list should fulfil two conditions. 1. The paid capital and collected funds of bank should not be less than Rs. 5 lac. 2.Any activity of the bank will not adversely affect the interests of depositors. Every Scheduled bank enjoys the following facilitiess. 1. Such bank becomes eligible for debts/loans on bank rate from the RBI 2. Such bank automatically acquire the membership of clearing house. The following are the Scheduled Banks in India (Public Sector):
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State Bank of India State Bank of Bikaner and Jaipur State Bank of Hyderabad State Bank of Indore State Bank of Mysore State Bank of Saurashtra State Bank of Travancore Andhra Bank Allahabad Bank Bank of Baroda Bank of India Bank of Maharashtra Canara Bank Central Bank of India Corporation Bank Dena Bank Indian Overseas Bank Indian Bank Oriental Bank of Commerce

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Punjab National Bank Punjab and Sind Bank Syndicate Bank Union Bank of India United Bank of India UCO Bank Vijaya Bank

The following are the Scheduled Banks in India (Private Sector):

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ING Vysya Bank Ltd Axis Bank Ltd Indusind Bank Ltd ICICI Bank Ltd South Indian Bank HDFC Bank Ltd Centurion Bank Ltd Bank of Punjab Ltd IDBI Bank Ltd

The following are the Scheduled Foreign Banks in India:

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American Express Bank Ltd. ANZ Gridlays Bank Plc. Bank of America NT & SA Bank of Tokyo Ltd. Banquc Nationale de Paris Barclays Bank Plc Citi Bank N.C. Deutsche Bank A.G. Hongkong and Shanghai Banking Corporation Standard Chartered Bank. The Chase Manhattan Bank Ltd. Dresdner Bank AG.

19. When State Bank of India was nationalized? 20. What is a Demand Deposit? 21. What is a Time / Term deposit? 22. For what value a certificate of deposit is issued by the banks?

23. What is a Garnishee order? 24. What is a BPLR / BMPLR? Ans: The BPLR(Bank Primary Lending Rate) or BMPLR(BenchMark Primary Lending Rate) is the interest rate that commercial banks charge their most credit-worthy customers.According to the Reserve Bank of India banks are free to fix the Benchmark Prime Lending Rate (BPLR) with the approval of their respective Boards. Banks are free to decide the BPLR but their interest rates have to have a reference to the BPLR fixed. Banks are free to fix BPLRs for credit limit beyond Rs.2 lakhs. Lending rates for the agricultural sector was set by the RBI. What is the difference between BPLR and Base Rate? The Reserve Bank of India (RBI) committee on reviewing the benchmark prime lending rate (BPLR) recommended that the BPLR nomenclature be scrapped and a new benchmark rate known as Base Rate should replace it. Base Rate is much more transparent and banks are not allowed to lend below the base rate (except for cases specified by RBI). Base Rate is to be reviewed by the respective banks at least on quarterly basis and the same is to be disclosed publicly. On the other, the calculations of BPLR was mostly not transparent and banks were frequently lending below the BPLR to their prime borrowers and also under pressure due to various reasons. The calculations of the BPLR by various banks was not transparent. However, Banks normally used to take into consideration the factors like cost of funds, administrative costs and a margin over it. However, such parameters were neither disclosed by bank nor were same for all the banks. The Base Rate calculations include all those cost elements which can be clearly identified and are common across borrowers. The constituents of the Base Rate includes (i) the card interest rate on retail deposit (deposits below Rs. 15 lakh) with one year maturity (adjusted for CASA deposits); (ii) adjustment for the negative carry in respect of CRR and SLR; (iii) unallocatable overhead cost for banks which would comprise a minimum set of overhead cost elements; and (iv) average return on net After factoring in costs incurred while sanctioning a loan, the proposed base rate could be as low as around 8.50% in the current interest rate scenario (October 2009). 25. Which is a Private sector bank and Give four names of private sector banks? 26. Explain savings bank Deposit and operations in a savings bank account? 27. What is meant by a foreign bank and give two examples of foreign banks operating in India?

Ans:A type of foreign bank that is obligated to follow the regulations of both the home and host countries. Because the foreign branch banks' loan limits are based on the parent bank's capital, foreign banks can provide more loans than subsidiary banks. The following are the Scheduled Foreign Banks in India:
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American Express Bank Ltd. ANZ Gridlays Bank Plc. Bank of America NT & SA Bank of Tokyo Ltd. Banquc Nationale de Paris Barclays Bank Plc Citi Bank N.C. Deutsche Bank A.G. Hongkong and Shanghai Banking Corporation Standard Chartered Bank. The Chase Manhattan Bank Ltd. Dresdner Bank AG.

28. Write a note on Banker Lien (General and Special) with examples? 29. Explain Schedule 5 of Balance sheet as per Banking Regulation Act? 30. As per Sec 31 of NI Act, every banker has certain obligations to be fulfilled while honoring the cheques. Discuss the provisions of NI act Sec- 31 which offers protection to the paying banker? 31. Discuss atleast four important functions of Reserve bank of India? 32. Write a note on the accounts maintained by a Partnership Firm, Lunatic and a Minor? 33. What is Investment banking? 34. What is Wholesale banking? 35. What is Retail banking? 36. What is Merchant Banking? 37. Write three primary requirements as per KYC norms? 38. What is a No-frill account? 39. What is a financial inclusion?

40. What is the primary relation between a banker and a customer , explain ? 41. You should also visit banks web sites and read as many products as possible