IBPS Clerk 2014 15 Interview PDF

IBPS CLERK 2014-15
Interview Magazine
All the necessary articles are given.
We are extremely sorry for uploading so late. As our HDD crashed two week ago,
we could not recover a single file.
The Current Affairs Bits are added, You need to read CA till 14th January. Read the
quizzes we have provided on Current Affairs.
RBI Rates:
CRR - 4.00
SLR - 22.00
Repo - 7.75
Reverse Repo - 6.75
MSF - 8.75
Bank Rate - 8.75
All the best. Give your Best. Share your experience at admin@exampundit.in
Credits: Sourav, Sandeepana, Anubhav, Sohom and All the Group Members
for giving ideas and supporting.
BASIC Questions and Tips in Interview:

1)
2)
3)
4)
5)
6)
7)
Never Say Something which Cannot Be Achieved. This shows you are Immature.
Sometimes you can argue with the HR only if you have the valid point.
When asked about your past employers, never ever tell "They were bad".
Don't drag your family problems into your interview, it shows you are emotionally weak.
Don't say, "I'm Workaholic" "I love to Work 24x7", this is the oldest line in the interview.
Always keep Recent and Major Events information about the Bank you are giving interview.
Don't stammer while answering, it shows your confidence level is low.
i) Tell us something about yourself / Brief yourself / Introduce Yourself.

Answer: Note, this is the MOST Important Question for Your Attitude Score. This will decide your attitude
towards the job. You should start with a smile on your face and a gentle voice. Don't have a
Underestimating, Aggressive tone while describing. Describe yourself in short with
only Academic Achievements and Professional Achievements.
ii) How do you Handle Pressure?

Answer: This is the perfect opportunity to describe your strengths and how do you fight back in hard
situations. Don't boast about yourself, just be authentic about what you are saying. You can describe
many academic situations where you had to handle a lot of pressure and you came back strong.
iii) Why do you Believe that you are Qualified for this Position?
Answer: Tell them about the positive qualities you have and how you can improvise yourself. No need to
pull technology and how good you can type stuffs.
iv) Where do you see yourself after 5/3 years?

Answer: Never ever Say things which CANNOT Be achieved in 3/5 years. That will prove you immature,
which does not show any confidence. You can tell that you will be 1-2 management position ahead if
your hard work is appreciated by the respected seniors.
v) Why banking when you are from Engineering/Technical field?

Answer: Be honest but with some brief explanation. You can easily describe how Banking has tied up
with technology. How technology advancement made banking easier. How technology is helping the
Financial Inclusion Programme.
Downloaded from ExamPundit
1. Attire:
Make sure you dress up in FORMALS. By formals I mean shirt and trousers for male and Salwar Kameez
or Saree for female. Female who are appearing for the interview in metro cities can wear Trousers and
Shirts. But always make sure you are comfortable wearing it because trying to adjust what you are
wearing constantly during the interview leaves a bad impression on the HRs.
2. Colour:
Never wear fancy colours during the banking interview.
Male: For male, the colour of the shirt should be light and trousers must be dark in colour.
Female: Ladies can dress up in Salwar Kameez without any shiny stitch work and colour should be light.
Same is applicable to women wearing sarees.
3. Accessories:
Male: Tie is a must for male. Tie has to be of dark colour preferably BLACK OR BLUE (deep). As, BLACK &
BLUE can be worn with any colour shirt.
Belt should be worn without a fancy buckle. Watches should be of simple dial (medium size). Watches
with big dials should be avoided.
Female: Female should not wear heavy jewellery. The earring should be simple preferably small in size.
Shoes with heels shouldn't make noise while entering the room. It gives a bad impression. Watches
should be of medium or small dial size.
4. Winter wear:
Male: Blazers are preferred above the shirt and tie. Blazers colour should match with the trouser colour.
If you are wearing a sweater then sweaters with tags or stickers on it should not be worn. Colour should
not be orange or yellow. Dark Colour sweater is preferred.
Female: Cardigans worn above Salwar Kameez or sari should be dark in colour. Cardigans with fancy
stitch work should not be worn. Avoid taking a shawl or stole to the banking interview.
Ladies wearing trousers and shirt should follow the dress code I have described for the male.
Its not that what you wear in the interview, you have to wear forever in your career. So even if you
choose to wear western for interview it is not a big deal. Just be sure you are comfortable.
1. What do you know by stale cheque?- When the cheque becomes out of date and cannot be
encashed, it is termed as stale cheque. For example, the validity period of any cheque is three
months and when a cheque dated: 10.01.2012 is presented for payment on 10.01.2013, it is
considered as a stale cheque, since the cheque is more than three months old.
2. What do you mean by post dated cheque?- When the date of the cheque is beyond the date on
which the cheque is presented for payment, the cheque is considered to be post dated. For
example, when a cheque dated: 10.02.2013 is presented for payment on 10.01.2013, it is
considered to be a post dated cheque.
3. What do you know by current chest? - Currency chests are operated by RBI so that they can
provide good quality currency notes to the public. However, RBI has appointed commercial banks
to open and monitor currency chests on behalf of RBI. The cash kept in currency chests is
considered to be kept in RBI and
4. What is meant by minimum balance to be maintained in the accounts? In the case of
savings bank and current account deposits, the banks stipulates a minimum balance to be
maintained. The minimum balance varies from bank to bank and when the balance in the account
falls below the minimum balance then banks debit the account with some penal charges. Some
banks insist quarterly average minimum balance to be maintained instead of regular minimum
balance to be maintained.
5. What do you mean by tax deduction at source? TDS means tax deducted at source. Banks must
deduct tax from the interest paid on the fixed deposit when the interest paid on fixed deposits
to a customer exceeds Rs. 10000/- during the accounting year. TDS is applicable to fixed deposits
only and is applicable to savings bank deposits.
6. What do you mean by weaker sections? - The following categories are termed as weaker
sections namely - small business enterprises; marginal farmers; artisans/village and cottage
industries for whom loans are granted upto Rs. 50000.00; SGSY beneficiaries; SC/ST
beneficiaries; DIR beneficiaries; SJSRY beneficiaries; SLRS; self help groups and people belonging to
minority community.
7. What do you know by MICR? - MICR means magnetic ink character recognition. Nowadays,
the cheques are issued in MICR formats in metropolitan centres namely; Mumbai, Chennai,
Kolkata, Bangalore etc. The MICR code is readable by a reader sorter computer which helps in
quick sorting of the cheques towards immediate adjustment of the amount to be received and paid
by the banks in the clearing house. MICR code consists of the following namely; the cheque
number, name of the city, name of the bank, name of the branch, account category etc. and banks
simply type the amount of the cheque in the MICR portion using scanners so that the sorter
reader is able to read the entire information in regard to the cheque instantaneously.
8. What do you mean by cheque truncation? - Under cheque truncation, the physical cheque is
replaced by the digital image of the cheque after scanning. Once the cheque is truncated the
physical cheque is cancelled and from the moment of truncation only the digital image has life.
The digital image of the cheque which contains the digital signature of a bank officer as to its
authenticity is processed by all banks and payment is effected. Cheque truncation helps in quick
processing of the cheques drawn even on far away places since there is no necessity to physically
move the cheque from one place to another place.
9. What do you mean by ECS?- ECS means electronic clearing service and this facility is used
where a large number of small value payments or receipts are to be made or received. ECS can
be used for either debit transactions or credit transactions. When a company wants to pay
dividends to large number of shareholders, they use ECS credit facility and by debiting the
company's account, the shareholders accounts are credited with the dividend amount
instantaneously. Similarly when an accountholder can use ECS debit facility towards effecting
payment to telephone charges each month.
10. What do you mean by bank assurance? Hither to banks were dealing with acceptance of
deposits and lending loans to the customers apart from undertaking certain ancillary services.
Nowadays banks started selling insurance policies of prominent insurance companies by having
tie up arrangements with such companies and banks earn commission for such transactions.
11. What do you mean by Universal banking? - Universal banking is the concept under which
banks can provide various types of services namely; deposits, loans, safe deposit lockers, safe
custody services, dealing with mutual fund schemes, selling insurance policies, selling gold coins,
dealing with issue of shares and debentures etc. Thus at present banks are becoming like a
supermarket for all kinds of financial products and such concept is called as universal banking.
12. What do you mean by Regional Rural Banks? - The Regional Rural Banks are relatively new
banking institutions which were added to the Indian banking scene since October, 1975. The
distinctive feature of a rural bank is that though it is a separate body corporate with perpetual
succession and common seal, it is very closely linked with the commercial bank which has
sponsored the proposal to establish it.
13. What do you mean by National Housing Bank?- National Housing Bank was established under
the National Housing Bank act, 1987 as an apex body and the key function of National Housing Bank
is the development of the housing sector and it is a wholly owned subsidiary of Reserve Bank of
India. National Housing Bank undertakes the following activities namely; promotion and
development of housing finance companies; regulation and supervision of housing finance
companies and providing both direct finance and indirect finance to housing sector.
14. What do you mean by NABARD? - National Bank for agriculture and rural development was
set up in 1982 as an apex development bank in the field of agricultural finance and rural
development. NABARD is set up by the Government for the purpose of facilitating credit flow
for promotion and development agriculture and integrated rural development. It covers
supporting all other allied economic activities in rural areas, promoting sustainable rural
development and ushering in prosperity in the rural areas.
15. What do you mean by EXIM Bank? - Export and Import Bank of India was set up during the
year, 1982 for the purpose of financing, promoting and facilitating foreign trade in the country. It
is wholly owned by the Government of India. The bank apart from enhancing exports from the
country, integrates the country's foreign trade and investment with the overall economic growth.
16. What do you mean by SIDBI? - SIDBI was established for the purpose of assisting and
promoting small scale industry. It was established on 2.4.1990. It is the principal financial
institution established for the promotion, financing and development of industry in the small scale
sector and to coordinate the functions of the institutions engaged in the promotion and financing
or developing industry in the small scale sector.
17. What do you mean by NBFCs? - Non Banking Finance Companies provide finance for small
ventures but at the same time they are more customer oriented and operate at low volumes
compared to the banks. They also collect deposits from customers and offer slightly higher
interest rates on deposits compared to the banks.
18. What do you mean NEFT and RTGS - The two options namely - national electronic funds
transfer and RTGS - real time gross settlement offered by Reserve Bank of India allow electronic
transfer of funds from the remitter who has an account in one bank to the beneficiary who has
account in any other bank/branch. The transfer can be carried out using the internet banking
facility. The minimum amount that can be transferred by RTGS is Rs. 2.00 lakh and there is no such
limit for transfer through NEFT. It is settled in batches at times defined by the Reserve Bank of India.
RTGS transactions are settled continuously as and when they are put through. The transfer of funds
through NEFT and RTGS can also be carried out by submitting the remittance form at the remitter's
bank branch.
19. What do you mean IFSC code? - IFSC means Indian financial system code. It is a eleven digit
code to identify the bank branch. IFSC code is used while transferring the funds using RTGS and
NEFT payments.
20. What do you mean by financial inclusion? In spite of vast growth in the banking system, a large
number of poor people are still not served by any bank. They are living outside the purview of
any bank. Financial inclusion is delivery of financial services at an affordable cost to the vast
population of disadvantaged/low incomes sections of the society
21. What do you mean No frill accounts? No frill accounts are accounts with very low or nil
minimum balance as well as charges to be opened by the banks as targeted by Reserve Bank of
India. KYC norms are relaxed for opening no frill accounts so that people living in rural and semi
urban areas can open the accounts conveniently. Overdrafts upto Rs. 25000.00 are allowed in the no
frill accounts
22. What do you mean by narrow banking? - It is the system of banking under which the bank
accepts deposits from the public and places the funds accepted in 100 percent risk free assets
with maturity matching for its liabilities. The bank takes no risk of lending at all.
23. Who are business facilitators and business correspondents? - RBI has permitted the banks to
use the services of business facilitators and correspondents with effect from 2006. The services of
non-governmental officers, microfinance institutions and civil society organizations can be
utilized by the banks. They help the banks in identifying the borrowers processing their
applications etc. without involving in business transactions. No approval of RBI is necessary.
Correspondents will do all the above and will also participate in business transactions in a small way.
24. What do you mean by non performing assets? - Non performing assets means bad loans.
When the principal and interest in the account becomes overdue for more than 90 days, it is
treated as non performing assets. Non performance assets are classified into sub standard assets,
doubtful assets and loss assets. Banks are willing to keep the level of non performance accounts at
the lowest.
25. What do you mean by priority sector advance? - In order to boost development of agriculture
and industries, Government of India has stipulated certain norms under which banks are in a
position to allocate 40 percent of their advances exclusively to certain categories of borrowers
called as priority sector advances. The following are classified into priority sector advances namely
- retail traders, small business, professional and self employed; agriculture; small scale
industries, self help groups, differential rate of interest and SC/ST beneficiaries
26. What do you mean by merchant banking? - Merchant banking stands for provision of
various services to corporate clients by helping them to access capital market. Merchant
banks help the corporate customers to approach the capital market with initial public offers
for the purpose of collection of capital by way of shares.
27. What do you mean by demat accounts? Demat means dematerialization. During the early days,
shares and debentures certificates were issued in physical form in the form of certificates. At
present, they are issued in electronic form. It is the process by which paper securities are
converted to electronic form so that they can be stored, sold and transferred easily.
28. What is a depository? - A depository holds the securities of the investors in electronic form.
In our country there are two depositories namely; NSDL - National Securities Depositories
Limited promoted by National Stock Exchange and CDSL - Central Depository Services Limited
promoted by Bombay Stock Exchange.
29. What do you know by consortium financing? When a corporate is in need of huge finance - say
Rs. 200 crores and above, banks join together and extend the loan facilities by sharing the loan
amount between themselves. This reduces the risk for each bank. The banks jointly process the
application of the borrower and sanction the advance and this is called consortium lending.
30. What do you mean by repo rate? - It is the rate at which RBI lends short term funds to the
commercial banks against securities. In order to temporarily expand the money supply, the
central bank decreases repo rates enabling the banks to swap the government securities for cash.
Repo is the abbreviation of Repurchase and to contract the money supply RBI increases the repo
rates.
31. What do you mean reverse repo ? - The reverse repo rate is the interest rate that banks
receive if they deposit money with the central bank. This reverse repo rate is always lower than the
repo rate. Increases or decreases in the repo and reverse repo rate have an effect on the interest
rate on banking products such as loans, mortgages and savings.
32. What do you mean by CRR? - CRR means Cash Reserve Ratio and as per the stipulations by
Reserve Bank of India, all banks are in a position to maintain a certain percentage of their
deposits technically called as net demand and time liabilities) in their account with the RBI. CRR
ranges from 5 percent to 15 percent. By increasing CRR by merely 0.25 percent, an amount of Rs.
15000 crores of liquid funds can be transferred from the commercial banks to the coffers of RBI.
When CRR is reduced, the liquid funds are transferred from RBI to commercial banks.
33. What do you mean by SLR? - Statutory Liquidity Ratio refers to the stipulation by RBI that
approximately 25 percent of the banks deposits is to be kept in the form of government securities,
gold and cash. Primarily SLR refers to the amount invested by the banks in Government of India
securities. RBI has the right to change the statutory liquidity ratio from time to time. On reduction
of SLR, the availability of funds for the banks moves up and banks tend to more loans to the
common public. In the case of increase in SLR, banks reduce bank lending.
34. What do you mean by PLR? - Prime lending rate is the rate at which commercial banks are
willing to lend to their triple A rated No 1 borrowers. The lending rates by the bank for other
borrowers whose credit worthiness is low will be more than prime lending rate. RBI has
deregulated the lending rates that are to be charged by the banks for advance above Rs. 2 lakhs.
35. What do you mean by BPLR? - It is the rate at which commercial banks must charge to all
their advances less than Rs. 2 lakhs.
36. Who is a non resident Indian? - Non resident Indian is the person who is the Indian citizen
who is residing in abroad for more than 182 days and has gone for abroad for the purposes
namely; business, studies and employment.
37. What are the different types of accounts that can be opened by Non Resident Indians? - Nonresident ordinary account, Non-resident External account, FCNR account and RFC account.
38. What are the different currencies in which FCNR accounts can be opened? - FCNR accounts
can be opened in the following currencies namely; US dollar, pound sterling, Euro, Australian
dollar, Japanese Yen and Canadian dollar. FCNR accounts can be opened for a minimum period of
one year and maximum period of three years
39. What are the traditional functions of RBI? - The traditional functions of RBI are - issue of
currency, forex management, export assistance, clearing house functions, change of currency,
transfer of currency, publication of statistics and other information and training in banking.
40. What are the developmental functions of RBI? - The developmental functions of RBI are agriculture development, promotion of industrial finance, promotion of export through
refinance, development of bill market, development and regulation of banking system.
41. What are the regulatory functions of RBI? - The regulatory functions of RBI are qualitative
credit control, bank rate, differential rate of interest, open market operations, Maintenance of
CRR and SLR, direct action, credit authorization scheme and moral persuasion
42. What are the different types of financial institutions in our country? - The various financial
institutions in our country are - RBI - Reserve Bank of India; SEBI - Securities and Exchange Board
of India and IRDA - Insurance Regulatory and Development Authority of India. RBI monitors the
various banks in the country; SEBI monitors and regulates capital markets and IRDA monitors the
functions of insurance companies.
43. What are the different types of banks in our country? - In our country the following banks are
available - savings banks; commercial banks; industrial banks; development banks; land
development banks; indigenous banks; central bank; cooperative banks; exchange banks and
consumer banks
44. What are the different types of secondary functions of any bank? - They are agency or
representative functions; general utility services and social development functions.
45. What do you mean by agency or representative functions of any bank? - They are collection
and payment of various items; purchase and sale of securities; trustee and executor; remitting
money; purchase and sale of financial exchange; letter of references and other agency functions.
46. What are the general utility services offered by the banks? - They are locker facilities;
business information; help in transportation of goods; acting as a referee; issuing of letters of
credit; acting as underwriters; issue of traveler cheques; issue of gift cheques and dealing in
merchant banking activities
47. What are the social development functions of a bank ? - They are capital formation;
inducement to innovations; impact on the rate of interest; role on the development of rural
sector; helping in pushing up the demand
48. Can you name some items which are covered under negotiable instruments act? - They are
promissory notes, bills of exchanges; cheques, exchequer bills; circular notes; dividend warrants;
share warrants; bearer debentures; bank notes and bank drafts
49. What is a Payment Bank? - Payment Bank is a entity which will allow you to open Savings and
Current Account like the other Banks. However, the difference is that a Payment Bank can be your
mobile operator or supermarket chaineg. Big Bazar) or even a NBFC.
50. What Makes Payment Banks Different From Normal Banks? - Payment Banks helps the
customer to handle cash a lot easier by providing privileages like transferring money from your
Mobile Phones to any bank account or another mobile phone customer and also you can recieve the
money similar way. The added advantages are paying bills, paying at the Shopping Retailers and
recharges etc.
51. Why Payment Banks? - India has a vast growing Mobile Users Database with over 91 Crore
customers. So basically providing the service will increase the Financial Inclusion Programme.
Basically it will help the citizen a lot on the other hand it will boost up the financial inclusion.
Facts On Payment Banks
Payment Banks will give an interest to the customer's account each year similar like Banks.
The only thing Payment Banks will note provide is Giving Out LOANS.
The RBI has stipulated that every payments bank must have an equity capital of 100 crore to
start off and maintain a capital adequacy of 15 per cent. Apart from these, it will need to
meet cash reserve requirements and needs to invest in specific securities to meet the
statutory liquidity ratio. All these amounts are to be invested in government securities or
treasury bills. Promoters holding must be at least 40 per cent for the first five years, and
eventually reduced to 26 per cent over 12 years.
NACHIKET MORE COMMITTEE is the officially appointed Committee which recommended
Payment Banks to increase the Financial Inclusion Programme.
Nachiket More Committee is also known as Committee on Comprehensive Financial
Services for Small Businesses and Low-Income Households.
Speculations as of 13th August, 2014 are that Western Union, Bharti Airtel, Vodafone are
interested in Payment Banks. It is said that Bharti Airtel is teaming up with State Bank of
India to set up Payment Banks.
History of ATMs and White Label ATMsWL -ATM/WLA
The first bank who produced ATM was HSBC in the year 1987 in Mumbai. After that ATM has
been installed in many places. But the problem occurred when RBI noticed that the
installation of ATMs have not been initiated in the Rural areas of India. Although SBI or State
Bank of India has the largest ATM network, yet the rural areas are neglected. Mainly the
Urban and Developed areas had the most ATMs. You will notice more ATMs in Shopping
Malls, Movie Theatres, Sports Arena, Entertainment Parks but less in Rural areas, villages.
This has affected the Financial Inclusion program.
To increase the Financial Inclusion, RBI issued guidelines for Non-Banking Financial
Companies to set up White Label ATMs or WL-ATM.
Usually we have seen ATMs with Bank's Logo in it, making it sure that the bank has installed
the ATM in that location. But White Label ATMs does not have any Bank logo in it. It is
installed by any Non-Banking Entity.
52. How does White Label ATM work? - It is like the outsourcing of bank's payment service. Earlier
bank's had to install ATMs using their Logos and security and other maintenance staffs. But with the
White Label ATMs banks now only need to fill the White Label ATMs with cash. Suppose a NBFC
named XYZ Ltd. opens a White Label ATM with the name "ABC". Now they will have a bank as
sponsor. Suppose MNO Bank is the sponsor. So now, XYZ will install and set up their White Label
ATMs and keep the maintenance staff and securities while MNO Bank will make sure the White
Label ATMs are having sufficient cash. The outcome of this system is that banks now will not need to
worry about maintenance and other things.
53. Do White Label ATMs charge the customer? - No, as per RBI guidelines they cannot charge the
customers directly. However, they charge from banks and the banks charge it from Customer's
account.
54. Summary of White Label ATM - Basically the main motive is to increase the financial inclusion.
As the NBFCs has to install White Label ATMs in a ratio of 1 Urban White Label ATM is to 2 Rural
White Label ATMs. So when they try to install 1000 White Label ATMs in a Urban Location they will
have to install 2000 White Label ATMs in the Rural Areas. It will increase the Rural participation in
Financial Inclusion.
Facts
IndiCash of Tata Communications Payment Solution LimitedTCPSL was the first White Label
ATM in India.
More than 15 companies including Tata, Muthoot, Prizm Payments, Srei Infra., Vakgrangee
Software, AGS have been given permission of White Label ATMs by Reserve Bank of India.
Any NBFC or any non-bank entity with a minimum net worth of Rs.100 crore can apply for
White Label ATMs. However it is completely on RBI whether they will give permission or not.
The 5 transactions are free on a monthly basis but after that the White Label ATMs will
charge 15 rs per transaction and 5 rs per balance inquiry. These charges will later reflect on
the customer's bank account statement.
All the Best. Visit www.exampundit.in for more PDF materials
10
BANKING AWARENESS - ExamPundit

PART I
Reserve Bank of India
01. Central bank is a bank which acts as a banker to the government; has monopoly
of note issue and controls the entire banking system
02. RBI is the central bank in India
03. RBI was established by an act of Parliament in 1934
04. The initial share capital for RBI was Rs. 5 crores
05. RBI was nationalized under (transfer of public ownership) act 1948
06. Its affairs are regulated by central board of directors
07. It has four regional centres at Mumbai, Kolkatta, Chennai and Delhi
08. The central office of the bank is at Mumbai
09. RBI is note issuing authority; banker, agent and financial adviser to the government;
custodian of cash reserves of banks; custodian of nation's reserves of foreign
exchange; lender of the last resort; controller of credit etc.
10. Currency notes other than one rupee notes are issued by RBI
11. RBI has credit control - regulation of cash reserves of commercial banks, regulating
the flow of credit, qualitative control and open market operations
12. Handles all government transactions
13. It is a banker's bank
14. It maintains the exchange rate for the Indian rupee; hold the country's reserves in
foreign currencies and administration of the exchange management regulations
Scheduled commercial banks

15. They are included in the second schedule to the RBI act, 1934
16. They can avail facilities from RBI - accommodation in the form of refinance and
loans and advances; remittance facility at concessive rates as also grant of
authorized dealer's license to handle foreign exchange business.
17. Have paid up capital and reserves - aggregate value of not less than Rs. 5 lakhs.
18. It can be a state cooperative bank or company registered under the companies act
19. Scheduled commercial banks are - State Bank of India and associates, nationalized
banks, private sector banks, regional rural banks, urban cooperative banks, state
cooperative banks
20. Scheduled Commercial Banks to maintain CRR up to 3 percent of their demand and
time liabilities which can go up to a maximum of 15 percent
11
Public sector banks
21.
22.
23.
24.
State Bank of India and associate banks

Nationalized banks - 19
Banks were nationalized on 19.07.1969 - fourteen banks
Nationalised banks are: Central Bank of India, Bank of India, Bank of Baroda,
Allahabad Bank, Union Bank of India, United Commercial Bank, Indian Overseas Bank,
Indian Bank, Canara Bank, Syndicate Bank, Punjab National Bank, United Bank of
India, Dena Bank, Bank of Maharashtra, Andhra Bank, Corporation Bank, Oriental Bank
of Commerce, Punjab and Sind Bank and Vijaya Bank. (19) and Industrial Development
Bank of India = 20
Development banks
25. Industrial Finance Corporation of India is a development bank

26. Its operations are project finance, financial services and corporate advisory services
27. Industrial Investment Bank of India was set up in 1971 for rehabilitation of sick
industrial companies.
28. Reconstituted as Industrial Reconstruction Bank of India in 1985 under the IRBI act, 1984
29. IRBI was incorporated in March, 1997 as Industrial Investment Bank of India Limited
under the companies act, 1956
30. SIDBI was set up in 1990 under an act of parliament (SIDBI) act 1989 as a wholly
owned subsidiary of IDBI
31. It is the principal financial institution for promoting and financing development of
industry in the small scale sector
32. 14 banks were nationalized on 19th July 1969
New Private sector banks
33.
34.
35.
36.
37.
38.
New private sector banks were formed as per RBI guidelines 1993
They were registered under companies act 1956
They were included in second schedule to the RBI act, 1934
The minimum paid up capital of a new bank shall be Rs. 100 crores
Priority sector lending norms should be adopted by these banks
The banks are governed by the provisions of the RBI act, 1934, the Banking
regulation act, 1949 and other relevant statutes.
39. They are not allowed to set up a subsidiary or mutual fund for at least three years after
their establishment
12
Regional Rural banks
40. Regional Rural banks were established on 2.10.1975

41. To develop rural economy by providing credit and other facilities for the
purpose of development of agriculture, trade, commerce, industry and other productive
activities in rural areas, particularly to the small and marginal farmers, agricultural
laborers, artisans and small entrepreneurs
42. They are scheduled commercial banks
43. Included in second schedule to RBI act, 1934
44. The gross NPAs of regional rural banks should not be more than 10 percent.
45. The banks should comply with the IRDA regulations for acting as a corporate agent
46. The authorized capital of a regional rural bank is Rs. 5 crore and issued/paid up capital
minimum of Rs. 25 lakhs and maximum of Rs. 100 lakhs
47. The prescribed minimum level of share holding should be 51 percent for sponsor
institutions
Local Area banks
48. Local area banks were established on 24.08.1996

49. They were set up in the private sector to cater to credit needs of the local people
and to provide efficient and competitive financial intermediation services in their area of
operation
50. They are required to observe the priority sector lending target of 40 percent of net
bank credit, as applicable to other domestic banks, out of which 25 percent shall be given
to weaker sections
51. They were registered as public limited companies as per Companies act, 1956.
52. They got licence as per Banking regulation act 1949
53. Included in the second schedule to RBI act, 1934
54. They have the minimum paid up capital of Rs. 5 crore
55. Promoters' contribution to be Rs 2 crores.
56. They can be promoted by individuals, corporate entities, trusts and societies
57. The area of operation of local area bank shall be a maximum of three
geographically contiguous districts.
58. To comply with the provisions of the Banking Regulation act, 1949, RBI act, 1934 and
other statutes
59. They are subject to prudential norms, accounting policies and other policies laid down by
RBI
13
Non Banking Finance Companies
60. NBFCs consist of eight categories - each one of them conducting a particular business
activity
61. Equipment leasing company undertakes equipment leasing or the financing of such
activity
62. Hire purchase finance company is engaged in hire purchase transaction or the
financing of such transactions
63. Loan company provides finance by making loans or advances or otherwise for any
activity other than its own.
64. The main business of any investment company is the acquisition of securities and
trading in such securities to earn a profit
65. Mutual Benefit Financial Company are the companies which are notified by the
Central Government under section 620 A of the companies act 1956
66. Miscellaneous non banking company - the principal business of such company is
managing, conducting or supervising as a promoter, foreman or agent of any transaction
or arrangement by which the company enters into an agreement
67. Housing finance company - acquisition of construction of houses including the
acquisition or development of plots of land
68. Residuary non banking company - receives deposits under any scheme or arrangement
by whatever name called in one lump sum or in installments by way of
contributions or subscriptions or by sale of units or certificates or other instruments or
in any manner.
69. Effective 4.3.2003, NBFCs are not allowed to offer more than 11 percent per annum
interest on public deposit
70. No official agency guarantees or undertakes the repayment of deposits or interest
71. NBFC deposits are uninsured and not backed by security
72. They are not allowed to offer more than 2 percent brokerage
73. They are not allowed to offer gifts or incentives
74. All depositors must be issued proper receipts for deposits
75. NBFCs having track record of less than 2 years is not eligible to accept public deposits
76. NBFCs seeking public deposit should be a profit making company
Life Insurance Corporation of India
77. LIC was established in 1956 as wholly owned corporation of the Government of India
78. LIC came into being from 1.9.1956
79. To spread life insurance across the country, particularly in the rural areas and to the
socially and economically backward classes.
80. Besides insurance business, LIC in pursuance of Government of India guidelines
invests a major portion of its funds in central and state government securities and
other approved securities including special deposits with Government of India.
14
81. Extends assistance to develop infrastructure facilities like housing, rural electrification,
water supply and sewerage and provides financial assistance to the corporate sector by
way of term loans, underwriting off and direct subscription to shares and debentures.
82. It also provides resource support to financial institutions through subscription to
their shares/bonds and by way of term loans.
83. UTI - the largest mutual fund organization in India was set up in 1964 by an
act of parliament.
84. Established to fulfil the objectives of mobilizing of retail savings, investing them in the
capital market and passing on the benefits accrued from the acquisition, holding,
management and disposal of securities to the small investors.
85. General Insurance Corporation of India was formed and registered on January, 1973
under the insurance act 1938 in accordance with the provisions of the General Insurance
Business (Nationalization) act, 1972
86. The New India Assurance Company Limited; The United India Insurance Company
Limited, The Oriental Insurance Company Limited and National Insurance
Company Limited are government owned insurance companies doing general insurance
business
87. Need based insurance companies to meet the diverse and emerging needs of
various segments of society and provides financial assistance to industrial projects by
way of term loans, short term loans and direct subscription to shares/debentures of
new and existing industrial enterprise.
National Bank for agriculture and Rural Development
88. NABARD was established in 1982 under an act of parliament

89. It is the apex development bank for promotion and development bank for promotion
and development of agriculture, small scale industries, cottage and village industries,
handicrafts and other rural crafts and other allied economic activities in rural areas
90. It serves as an apex financing agency for the institutions providing investment and
production credit for promoting the various developmental activities in rural areas
01. 91. Takes measures towards institution building for improving absorptive capacity of
the credit delivery system, including monitoring, formulation of rehabilitation
schemes, restricting of credit institutions, training of personnel etc.
91. Coordinates the rural financing activities of all institutions engaged in developmental
work at the field level and maintains liaison with Government of India, state
governments, RBI and other national level institutions concerned with policy
formulation
Export and Import Bank of India
92. Export and Import Bank of India - EXIM bank was established in 1982
93. Public sector financial institution created by an act of Parliament vide - the Export and
Import Bank of India act 1981.
15
94. Principal financial institution for - financing, facilitating and promoting India's foreign
trade
95. They provide Indian exporters with investment loans, export product development
loans, loans for export marketing, pre shipment credit, suppliers credit for exports or
projects and advisory services.
96. Equity finance available for acquiring of setting up companies abroad for
manufacturing, marketing, trading etc.
97. It offers buyers credit and lines of credit to foreign governments and banks
98. It has facilities to provide advance information and business advisory services to
Indian exporters in respect of multilaterally funded projects overseas.
99. It offers advisory and information services to exporters and sponsors
PART II
01. EXIM bank operates various lending programs for promotion of exports of engineering
and capital goods and related services from India
02. EXIM - Direct financial assistance to exporters of plant, equipment, machinery and
related services in the form of medium term credit
03. EXIM -Overseas investment finance to Indian promoters of overseas joint ventures to
support their equity investments.
04. EXIM - Overseas buyers' credit to foreign importers for import of Indian capital goods and
related services
05. National Housing bank was established on 9.7.1988
06. Vide National housing bank act, 1987 to function as a principal agency to promote
housing finance institutions and to provide financial and other support to such
institutions.
07. NHB - issues directions to housing finance institutions to ensure their growth on sound
lines
08. Make loans and advances and render any other form of financial assistance to
scheduled banks and housing finance institutions or to any authority established by or
under any central, state or provincial act and engaged in slum improvement
09. Formulate schemes for the purpose of mobilization of resources and extension of credit
for housing.
10. Banks can accept both demand and time deposits from the public
11. Interest payable on savings bank accounts is not regulated by Reserve Bank of India
12. RBI is the sole authority to issue and manage currency in India
13. 13. Accounts are allowed to be operated by cheques in respect of both savings
bank accounts and current accounts
14. Normally no interest is paid on current deposit accounts
15. The usual deposit schemes of the banks are current accounts, savings bank accounts and
term deposit accounts
16. Fixed deposits and recurring deposits are repayable after an agreed period
17. Financial inclusion means provision of financial services namely, payments, remittances,
savings, loans and insurance at affordable cost to persons not yet given the same
18. Sale of insurance policy to a depositor is known as cross selling by banks
16
19. When a bank returns a cheque unpaid, it is called as dishonor of the cheque
20. Mortgage is a security on immovable property for a deposit received by a bank
21. Accounts in which shares of various companies are traded in electronic form is called as
demat accounts
22. NABARD has sought an emergency fund of Rs. 1000 crore from banks to tackle acute
liquidity crisis, which is coming in the way to give loans to micro borrowers
23. Distribution of insurance products and insurance policies by the banks as corporate
agencies is known as bank assurance
24. The term L denote "Liquidity" in term "LAF" as referred every now and then in relation
to monetary policy of RBI - liquidity
25. The full form of FINO - a term frequently used in newspapers is called as
Financial Information Network and Operation Limited
26. The rate of inflation increases when the purchasing power of money decreases
27. Interest on savings bank account is now calculated by banks on daily product basis
28. A centralized data base with online connectivity to branches through internet as well as
ATM network which has been adopted by almost all major banks of the country is known
as core banking
29. Treasury bills, commercial paper, certificate of deposit, shares and bonds are called as
money market instruments
30. Repurchase agreement is not money market instrument
31. With a view to facilitate payment of balance in the deposit account to the person
named by the depositor without any hassles in the event of death of the account
holder, the following facility has been introduced for bank accounts in our country nomination
32. Banks in our country normally publicize that additional interest rate is allowed on
retail domestic term deposits of - senior citizens
33. CRR - cash reserve ratio
34. SLR - statutory reserve ratio
35. EXIM bank - export and import bank of India
36. NABARD - National Bank for Agriculture and Rural development
37. SIDBI - small industries development bank of India
38. EDP - entrepreneurship development programme
39. SMERA - SME rating agency of India Limited
40. NBFC - Non banking finance companies
41. NEFT - National electronic funds transfer
42. RTGS - real time gross settlement
43. Narrow banking is a system of banking under which a bank places its funds only in
100 percent risk free assets with maturity matching for its liabilities.
44. NPA - non performing assets
45. CAR means capital adequacy ratio
46. KYC means know your customer guidelines
47. IPO - Initial public offer
48. QIB - qualified institutional buyers
49. SEBI - securities and exchange board of India
50. MICR - magnetic ink character recognition
51. NSE - national stock exchange
52. BCSBI - Banking codes and standards board of India
53. FEDAI - Foreign exchange dealers association of India
17
54.
55.
56.
57.
58.
59.
60.
ALCO - asset liability committee

ALM - asset liability management
FCNR - foreign currency non resident deposit accounts
CDRS - Corporate debt restructuring
IDRBT - Institute for development and research of banking technology
YTM - yield to maturity
IRDA - Insurance Regulatory and Development Authority of India
PART III
01. The bank branches which can undertake foreign exchange business directly are
known as approved dealers in foreign exchange
02. Insurance cover for bank deposits in the country is provided by DICGC
03. Deposit Insurance and Credit Guarantee Corporation of India Limited is called as DICGC
04. The financial literacy includes the following namely; how to invest the funds; how to
use the limited funds carefully; how to minimize the risks and how to reinvest the money
earned
05. The loans of very small amounts given to low income group is called as - Micro credit
06. When a banker talks about CDR, CDR is meant - Corporate Debt Restructuring.
07. ALM is called as Asset Liability Management
08. Cash Reserve Ratio and Statutory Liquidity Ratio are terms most closely related to
the following industries/markets - Banking industry
01. 09. CRR and SLR are not related to capital market, commodities market, money
market and mutual fund industry
09. The letter "L" available in the term LAF commonly used in financial/economic news is
called as- Liquidity
10. LAF means liquidity adjustment facility
11. The banking ombudsman resolves the complaints of the customers in regard to
services provided by the banks
12. Public sector bank, foreign bank, private sector bank and regional rural bank are
classified as commercial banks
13. Urban cooperative bank is not a commercial bank
14. SEBI means Securities and Exchange Board of India.
15. Money laundering means - the process of conversion of money obtained illegally to
appear to have originated from legitimate sources
16. Monetary policy as an arm of the economic policy is administered by - Reserve Bank of
India
17. The following is not a primary function of a bank - Facilitating import of goods
18. The following are the functions of banks - accepting deposits; granting loans;
collecting cheques; issuing drafts; selling gold/silver coins
19. The following represent the correct meaning of Repo rate - Rate for borrowing rupees
by banks from RBI
20. The reserves which can act as a liquidity buffer for commercial banks during crisis times
are CRR and SLR
18
21. Savings bank accounts are opened by individuals for savings purposes
22. A customer drawing a cheque on a bank has the right to stop payment of the cheque
before it is paid
23. The following are the functions of a commercial bank namely; providing project
finance; settlement of payments on behalf of the customers; issuing credit and debit
cards to the customers and providing services such as locker facilities and remittances
24. Commercial banks do not undertake the following functions: deciding policy rates like
CRR, SLR and repo rates
25. Reserve Bank of India undertakes the following rates: CRR; SLR and repo rates
26. The conversion of money which is illegally obtained is called as - money laundering
27. For purchase of white goods, the following loan is granted by the banks consumer durables loan
28. A cheque which has completed the stipulated validity period of the cheque is called as
- stale cheque (The validity period is 3 months as at present)
29. Ganesh has been nominated in the savings bank account of Vijaya and Ganesh
requests the bank authorities to allow him to operate Vijaya's account as she is found
to be unwell. What will the bank do? - As nomination will come into effect only after
the death of the depositor, the bank will not permit
30. The following is a measure taken by RBI in order to control inflation in the country raising of Repo and Reverse Repo rates.
31. What do you understand by the term called as mortgage ?- Making the security of
immovable property available as a cover for a home loan availed by the borrower
32. The following constitutes the largest percentage of retail loans in the country - Home
loans
33. The credit risk to the bank is high from which of these cards - Credit cards
34. Depreciation of an asset does not occur on account of the following namely; fire in
the unit; theft; labour trouble; wear and tear;
35. The following are the sources of finance for any commercial bank - capital, borrowings
from RBI, deposits and cash reserves with RBI
36. Call money borrowings - is not the source of finance for any commercial bank
37. The rate at which the domestic currency can be converted into foreign currency and vice
versa is known as the - exchange rate
38. ARCIL - is the asset reconstruction company
39. IRDA - Insurance Regulatory Development Authority
40. BCSBI - Banking Codes and Standards Board of India
41. CIBIL - Credit Information Bureau of India Limited
42. Exchange rate is the term used in the field of economics
43. The non performing assets of any bank are called as - sub standard assets, doubtful
assets and loss assets
44. The performing assets of any bank are called as - standard assets
45. The crossing on a cheque can be cancelled by the drawer of the cheque under his
full signature
46. Banks can accept both demand and time deposits from the public
47. Interest payable on savings bank is not regulated by RBI
48. The usual deposit accounts of the banks are - current accounts, savings accounts and
term deposit accounts
49. The fixed deposits, reinvestment deposits and recurring deposits are repayable
after an agreed period.
19
PART IV
01. Accounts are allowed to be operated by cheques in respect of current and savings
accounts
02. Interest is not paid in current accounts
03. Mortgage is a security on immovable property for loan given by the bank
04. Financial inclusion means provision of - financial services namely; payments,
remittances, savings, loans and insurance at affordable cost to persons not yet given the
same
05. When a bank returns a cheque unpaid, it is called as - dishonor of the cheque
06. Demat accounts are accounts in which the shares of various companies are traded
in electronic form
07. NEFT means - National Electronic Funds Transfer
08. No upper limit has been prescribed for RTGS
09. RTGS means - Real Time Gross Settlement
10. 10. Distribution of insurance products and insurance policies by banks as corporate
agents is known as - bank assurance
11. Interest on savings bank account is now calculated by the banks on daily product basis
12. Government of India is the largest shareholder (in percentage shareholding) of a
nationalized bank
13. Banks in the country normally publicise that additional interest rate is allowed in
retail domestic term deposits held by- senior citizens
14. A centralized database with online connectivity to branches, internet as well as ATM
network which has been adopted by almost all major banks of the country is
known as - core banking
15. Commercial paper is not considered as the money market instrument
16. With a view to facilitate payment of balance in the deposit account to the person
named by the depositor without any hassles in the event of death of the account
holder, the following facility was introduced for bank accounts in the country Nomination
17. ATM cards are issued to a person who maintains any of the following accounts namely
-savings bank accounts and current accounts
18. ATM is a computer which is dedicated to perform certain specific jobs only
19. ATM is a user friendly machine and the customer does not require any training for using it
20. ATM is totally menu driven which displays instructions to the customer step by
step for operating the same
21. A working group on cheque truncation and E-cheques was constituted by RBI under
the chairmanship of Dr. R.B. Barman and major recommendations of group include the physical cheque will be truncated within the presenting bank; settlement will be
generated on the basis of current MICR code line data and electronic images will be used
for payment processing
22. RTGS benefits the customer and the bank
23. RTGS means a payment system in which - both processing and final settlement of funds
transfer instructions can take place continuously
20
24. RBI in regard to RTGS has decided that - RTGS would be accessible to all retail customers
and there would be no floor ceiling for routing the transactions through RTGS and
settlement of transactions.
25. State Bank of India is considered to be the first bank to launch a mutual fund
26. In commercial paper the following parties can invest - individuals, banking companies
and corporate bodies registered or incorporated in the county and unincorporated
bodies, Non Resident Indians and foreign Institutional Investors.
27. The commercial paper may be issued in multiples of Rs. 5 lakhs subject to the minimum
size of an issue to a single investor being - Rs. 5 lakhs
28. Commercial paper may be issued for period ranging from seven days to one year
29. Commercial paper is essentially - unsecured money market instrument
30. Social control was imposed on commercial banks effective from - 1st February, 1969
31. Fourteen major Indian banks having deposits of more than Rs. 50 crores were
nationalized on 19.07.1969
32. 32. With effect from 19.07.1969, the fourteen major Indian banks were nationalized
by the Government of India under - the banking companies (acquisition and
transfer of undertakings) act 1970
33. 33. Effective from 15.04.1980, six banks with demand and time liabilities exceeding
Rs. 200
34. crores were nationalized
35. 34. In the wake of Narasimhan committee recommendations the banks which
entered into the capital markets - State Bank of India, Oriental Bank of Commerce and
Bank of India.
36. In the wake of Narasimhan Committee recommendations, the financial sector reforms
were implemented by the government of India
37. 36. Financial sector reforms aim towards introduction of capital adequacy norms,
based upon capital to risk weighted asset ratios; prudential norms relating to
classification of assets, income recognition and provisioning; setting up of a strong
supervisory and surveillance mechanism for the banking system and financial sector
through the Board for financial supervision in RBI
38. According to Hilton Young Commission, the RBI act, 1934 was enacted
39. The Banking Commission was appointed by the Government of India in January, 1969
under the chairmanship of R.G. Saraiya
40. In order to study the functioning of Public Sector banks, James Raj Committee was
appointed
41. Kamath working group was appointed to study the problems arising out of the
adoption of multi agency in agricultural banking
42. The banking laws committee was headed by - P.V. Rajamannar
43. The National Credit Council which symbolized the role of credit planning in
development was set up in the year - 1968
44. During the year-1966, RBI set up the All India Rural Credit Review Committee in order
to - reassess the developments that have taken place in the field of rural credit since 1954,
that is subsequent to submission of the report of the All India Rural Credit Survey
Commission
45. Talwar committee submitted its report in the year 1977
46. Talwar committee was appointed by Government of India to - submit
recommendations on customer service on banks
21
47. In order to review the existing system of inspection of banks by RBI, Pendarkar
working group was appointed
48. 47. Under the chairmanship of H.N. Sinor, the working group to examine
various issues concerning the deposit rates including floating rate of interest on
fixed deposits was constituted by RBI
49. RBI had constituted the working group on flow of credit to SSI sector under the
chairmainship of A.S. Ganguly
50. The Joint stock banking system started in the late 18th century/early 19th century
51. The Bank of Bengal got its charter in 1809
PART V
01.
02.
03.
04.
05.
06.
07.
08.
09.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
The first bank in India was set up on modern lines in 1770 by an agency house
Bombay stock exchange was made functional as early as 1870
The first life insurance company in the country - Oriental Life Insurance company
Oriental Life insurance company was established in 1818
First General (non life) Insurance company was set up in 1850
There were 566 private commercial banks in the country with 4151 branches in 1951
There are 32 foreign banks in the country
Foreign banks have around 310 branches all over the country
The Unit trust of India came into existence in 1964
Export Risk Insurance Corporation was set up in July 1957
Export Risk Insurance Corporation was converted as ECGC in January 1964
ECGC - Export Credit Guarantee Corporation
The deposit insurance corporation was set up in 1962
The fourteen banks which were nationalized on 19.7.1969 were - 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; United Commercial Bank and Bank of India
Six banks were nationalized during the second stage on 15.4.1980
Regional Rural Banks were set up in 1975
NABARD was established in 1982
NABARD - National Bank for Agriculture and Rural Development
Securities and Exchange Board of India was established in 1988
Licensing for new private sector banks was issued in 1993
Indian financial system is composed of three components - financial assets, financial
markets and financial intermediaries or institutions
Financial assets are classified into primary or direct securities and secondary or
indirect securities
Financial markets can be classified into money market and capital market
Financial intermediaries can be classified into organized and unorganized
Organized financial intermediaries can be classified into banking institutions and non
banking financial institutions
22
26. Primary securities are those securities which represent financial claims against real
sectors
27. Real sectors represent bills, bonds, shares, book debts etc.
28. National savings certificates, infrastructure bonds, Indira Vikas Patras, Krishi Vikas
Patra etc. are examples of financial assets
29. Money market is the center of dealings mainly of short term character in monetary assets
30. The capital market deals in long term funds, both debt and equity
31. Financial instruments of the capital market are classified into the following two
categories namely; government or gilt edged securities and corporate securities
32. The main financial instruments of corporate sector are - shares, debentures, public
deposits and loan from institutions
33. Banking commission was established in 1972
34. Capital market is a market which deals in long term funds
35. Regional Rural Banks fall within supervisory purview of RBI
36. IRDA is the regulatory authority for all insurance companies in the country including
LIC of India
37. IRDA has its headquarters at Hyderabad
38. Mutual funds fall within the supervisory purview of SEBI
39. Export and Import Bank of India does not fall within the purview of development banks
40. State Bank of India was formulated as per SBI act 1955
41. ICICI Bank Limited is the first Universal Bank established in the country
42. New Bank of India merged with Punjab National Bank
43. The central monetary authority of the country is Reserve Bank of India
44. Scheduled commercial banks are banks which have been included in the second
schedule of RBI act, 1934; registered under companies act and got licence as per
Banking Regulations act 1949
45. When the banks entertain in dealing with insurance business, it is called as bankassurance
46. Universal banking is the roof under which various banking products are available
47. When the repayment period of any loan is upto 36 months, the loan is called as short
term loan
48. When the repayment period is between 37 to 84 months, such loans are called as
medium term loans
49. When the repayment period is more than 84 months, they are called as long term loans
50. In the case of Regional Rural Banks, the contribution structure between Government of
India, State Government and Sponsoring banks are in the ratio of 50:15:35
PART VI
01.
02.
03.
04.
05.
06.
07.
Laxmi Commercial Bank merged with Canara Bank

CAMEL denotes - capital adequacy, asset quality, management, efficiency and liquidity
Banks are subject to operational risk, credit risk, market risk, liquidity risk
When the ATM machine installed in the bank is out of order, it is called as operational risk
When the computers are not functioning, it is called as operational risk
When the loans are not repaid in time, it is called as credit risk
When the banks products fail to survive in the market, it is called market risk
23
08. When the banks are not able to pay the amount to the depositors, it is called as liquidity
risk
09. IFSC code denotes the branch code of any bank
10. IFSC code consists of eleven digits
11. Tissue culture denotes propagation of cells
12. Aqua culture denotes shrimp farming and fish production
13. Horticulture means fruit production
14. Sericulture means silk production
15. Pisciculture means fish farming
16. Apiculture means honeybee rearing
17. Sylvi culture means cultivation of fodder crops
18. Moriculture means cultivation of mulberry
19. Olericulture means vegetable cultivation
20. Increase in agriculture production is called as green revolution
21. When the activity relates to milk production, it is called as white revolution
22. When the activity relates to meat production, it is called as red revolution
23. When the activity relates to cocoa production, it is called as brown revolution
24. When the activity relates to rubber production, it is called as black revolution
25. When the activity relates to fish farming, it is called as blue revolution
26. When the activity relates to cultivation of oil seeds and pulse production, it is called as
yellow revolution
27. When the activity relates to flower production, it is called as rainbow revolution
28. Marginal farmer is one who has irrigated lands less than 1.25 acres or non irrigated
lands less than 2.5 acres
29. Small farmer is one who has irrigated lands less than 2.50 acres or non irrigated lands
less than 5.00 acres
30. Agricultural laborer is one whose 50 percent of income is from agriculture
31. The old private sector banks in the country are: City Union Bank, Tamilnadu Mercantile
Bank, SBI commercial Bank, Catholic Syrian Bank, Dhanalakshmi Bank, Federal Bank,
Jammu and Kashmir Bank, Karnataka Bank, Karur Vysya Bank, Lakshmi Vilas Bank,
Nainital Bank, Ratnakar Bank, South Indian Bank Limited, ING Vysya Bank Limited
32. The new private sector banks in the country are: Axis Bank, Development credit bank,
HDFC Bank, ICICI Bank, Indus Ind Bank, Kotak Mahindra Bank, Yes Bank
33. The subsidiaries of State Bank of India are; State Bank of Patiala; State Bank of
Hyderabad; State Bank of Travancore; State Bank of Bikaneer and Jaipur and State Bank of
Mysore.
34. Oriental Bank of Commerce has taken over Global Trust Bank
35. For charging interest on loans/advances from July 2010, RBI introduced the following
system namely; Base lending rate system in the place of Benchmark Prime Lending Rate
system
36. Money laundering refers to conversion of money which is legally obtained
37. The account in which trading of shares in their electronic form is called as DEMAT account
38. Reserve Bank of India issues all the currency notes except one rupee note
39. RBI does not transact the business of the following state government namely - Jammu
and Kashmir
40. The first Indian bank to open a branch outside India in London in 1946 is Bank of India
41. NRI deposits are called as hot money
24
42. Euro Bond is an instrument issued in a country other than the country of the currency of
the bond
43. National Income Estimates in India are prepared by Central Statistics Commission
44. Full convertibility of a rupee means determination of rate of exchange between rupee
and foreign currencies freely by the market forces of demand and supply
45. RBI has prescribed that all scheduled commercial banks should maintain their SLRs in
dated securities notified by RBI; treasury bills of Government of India and State
Development Loans
46. The following category of banks were mooted with a view to providing an
Institutional mechanism for promoting rural and semi urban savings as well as for the
provision of credit for viable economic activities in local areas - Local area banks in the
private sector
47. LAB means local area banks
48. The first Private bank in India to receive an in principle approval from Reserve Bank of
India was Housing Development Finance Corporation Limited
49. The actual return of an investor is reduced sometimes as the prices of the commodities
go up all of a sudden. In financial sector, this type of phenomenon is known as - market
risk
PART VII
01. Banking regulation act, 1949 does not at all apply to - primary agricultural credit societies
and cooperative land mortgage banks
02. As per the provisions of section 12 of the Banking Regulations act, 1949, the minimum
ratio between the authorized, subscribed and paid up capital of a banking company
should be 4:2:1
03. Under the provisions of section 35(b) (ii) of the Banking Regulation Act, 1949,
inspection of branches of Indian banks situated abroad is to be carried out by - RBI
04. The first public sector bank to issue capital to public is - Oriental Bank of Commerce
05. The New Private Sector Banks have been authorized to be set up under the new
liberalization policy and the minimum paid up capital should be - Rs. 200 Crore
06. The Banking Companies act, 1949 was enacted to consolidate and amend the law
relating to banking companies with effect from 1.3.1966 and the name of the act has
been changed to - The banking regulation act
07. The management of SEBI consists of - chairman and five members
08. The following is the reason for the success of mutual fund - mutual fund scheme offers
to every investor security, steady growth, regular income and easy liquidity; a small
investor gets the professional expertise of the fund managers of the mutual fund and
it carries tax breaks and this benefit is passed on to the investor
09. The individual investor can claim tax exemption for both principal amount and income
from these units under - Sec 80 E of the information technology act
10. The main objectives of special electronic fund transfer scheme - SEFT - it is safe;
secure and same day electronic interbank transfer of funds across the country
11. Treasury bill is - negotiable security
12. RBI functions as the agent of the central government issues - treasury bills
25
13. The treasury bills are issued at a - discount

14. NABARD extends refinance to - State Land Development Banks, State Cooperative
Banks; Regional Rural Banks and Commercial Banks and other financial institutions
approved by RBI
15. Automatic refinance scheme is available to the persons financed under - the scheme of
setting up of agriclinic and agribusiness centers; rural non farm sector (investment credit)
upto Rs. 15 lakhs and composite loan scheme
16. The objectives and functions of IDBI include - to provide technical and
administrative assistance for promotion or expansion of industry; to undertake
market and investment research and survey technical and economic studies in
connection with development of industry and to act as lender of last resort and to
finance projects that are in conformity with national priorities
17. For availing refinance from IDBI - the industrial unit should not be SSI;
promoter's contribution should be 25% of project cost and debt equity ratio should not be
more than 2:1
18. Central Cooperative Banks - serve as the connecting links between State Cooperative
Banks and Primary Credit Societies; finance the primary credit societies which balance
the excess and deficiency in their resources but do little commercial banking and
are closer to the primary societies than an apex bank
19. The primary function of a central cooperative bank is - to mobilize the resources in the
district for financing its members; to channelize the flow of funds from the state
cooperative banks and to mobilize deposit from state government
20. Diversification refers to entering into attractive opportunities.
21. Diversification means the activities outside the existing businesses of the firm
22. 22. The various types of diversification generally observed by the business concentric diversification, horizontal diversification and conglomerate diversification
23. The world over most of the supervisory authorities have adopted the following as the
basis of assessment of capital adequacy - risk assets ratio system
24. 24. The committee on Banking and Regulations and Supervisory practices which
released the agreed frame work on international convergence of capital measures and
capital standards in July, 1988 is popularly known as - Basle committee
25. Basle committee adopted weighted risk assets approach which assigns weights to on balance sheet exposure of a bank and off balance sheet exposure of a bank
26. CBS - Core Banking Solution
27. The benefits of Core Banking Solutions - benefit of not carrying the cash from one
place to another; depositing money anywhere in the country where the bank is present
and instant updating of the accounts
28. Network can be defined as - a system of communication between various computers used
by different users.
29. Retail banking refers to provision of the basic services of a bank to the individuals
30. The following are categorized under retail banking - personal loans to individuals;
vehicle loans; home loans and credit cards
31. The reduction in the SLR by RBI - will augment the resources of scheduled commercial
banks
32. Under sections 20, 21 and 21A of the RBI act, 1934, RBI manages the public debt and
issues new loans on behalf of the central and state governments
33. Social control of banks was introduced during the year - 1967
26
34. The following form the part of general insurance - fire, burglary, theft, marine,
household, vehicles etc
35. FDMA means - Frequency Division Multiple Access
36. Full form of ERNET - Educational and Research Network
37. Application of VSAT in bank is - inter branch reconciliation; funds and securities
movement; payment system and monitoring and MIS reporting
38. The various facilities offered by banks through tele banking - balance enquiry; enquiry
about collection or specific credit/debit transactions; transfer of funds and request for
statement of accounts etc.
39. Home banking refers to - how banking is an extended version of tele banking; in
home banking the customer is able to access his bank account from his home for
availing a variety of services which is made available and home banking is availed
through the customer's personal computer attached to a telephone line and modem.
40. For availing home banking facility, a client should have the following - personal
computer, modem and telephone line
41. The functions of IRDA - it has the power to specify the code of conduct for surveyors and
loss assessors; it has power to regulate investment of funds by insurance companies; it
has power to supervise the functioning of tariff advisory committee and it has the
duty to regulate, promote and ensure orderly growth of the insurance and re-insurance
business in the country
42. 42. The compelling reasons for bank nationalization are - concentration of which and
economic power in the hands of industrialists and businessmen; branch expansion
was confined to urban areas and rural areas were being neglected; sectors like
agriculture, small scale industries and the other deserving sectors were outside the
purview of bank lending operations and various malpractices indulged in by banks
under private ownership
43. Regional Rural Banks are allowed to pay half per cent additional interest on savings
accounts and time deposits less than three years
44. The regulatory authority for Regional Rural Banks is RBI and NABARD
45. Bank rate means the standard rate at which the RBI is prepared to buy or rediscount
bills of exchange and other commercial paper eligible for purchase under the RBI act
1934
46. When RBI desires to restrict expansion of credit it raises the bank rate
47. In periods of depression, when the Reserve Bank of India desires to encourage the
banking system to create more credit, it reduces the bank rate
48. Sub section 12 AB of system 17 of the RBI act, 1934 defines the term: Repo
49. Repo is an instrument for borrowing the funds by selling securities of the central
government or a state government or of such securities of a local authority as may be
specified in this behalf by the central government or foreign securities, with an
agreement to repurchase the said securities on a mutually agreed future date at an
agreed price which includes interest for the funds borrowed
50. Sub section 12AB of section 17 of the RBI act 1934 defines the term - Reverse repo rate
27
PART VIII
BANKING TERMS - ABBREVIATIONS
01.
02.
03.
04.
05.
06.
07.
08.
09.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
ISCI - International Standard Industrial Classification

KCC - Kisan Credit Card
KVIC - Khadi and Village Industries Corporation
KYC - Know your customer
LAMPS - Large Sized Adivasi Multipurpose societies
LERMS - Liberalised Exchange Rate Management System
LIC - Life Insurance Corporation of India
MCA - Ministry of Company affairs
MIS - Management Information System
MICR - Magnetic Ink Character Recognition
NABARD - National Bank for Agriculture and Rural Development
NBFC - Non Banking Finance Companies
NEFT - National Electronic Funds Transfer
NPA - Non Performing assets
NRE - Non Resident External account
NRI - Non Resident Indian
NSE - National Stock Exchange
OLTAS - Online tax accounting system
OMO - Open market operations
PACS - Primary Agricultural Credit Societies
PDO - Public Debt Office
PIN - Personal Identification Number
QIB - Qualified Institutional Buyers
RBI - Reserve Bank of India
RDBMS - Relational Database Management System
REC - Rural Electrification Corporation
RFC - Resident Foreign Currency
RIDF - Rural Infrastructure Development Fund
RRB - Regional Rural Bank
RTGS - Real Time Gross Settlement
RWA - Risk Weighted Assets
SBI - State Bank of India
SCB - Scheduled Commercial Bank
SDR - Special Drawing Rights
SEBI - Securities and Exchange Board of India
SFMS - Structured Financial Messaging Services
SHG - Self Help Group
SIDBI - Small Industries Development Bank of India
SIDC - State Industrial Development Corporation
SJSRY -Swarna Jayanthi Shahari Rozgar Yojana
28
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
SLR - Statutory Liquidity Ratio

SLRS - Scheme for Liberation and Rehabilitation of Scavangers
SMERA - SME rating agency of India Limited
SSI - Small Scale Industries
SME - Small and Medium Industries
SSSBE - Small Scale Service and Business Enterprises
UTI - Unit Trust of India
WPI - Wholesale Price Index
YTM - Yield to maturity
LAB - Local Area Banks
BANKING TERMS - ABBREVIATIONS

01.
02.
03.
04.
05.
06.
07.
08.
09.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
ALM - Asset Liability Management

ANBC - Adjusted Net Bank Credit
ASBA - Applications supported Bank accounts
BOE - Bill of Exchange
CASA - Current and savings accounts
CBLO - Collateralised Bank Lending Obligations
CIBIL - Credit Information Bureau of India Limited
DPG - Deferred Payment Guarantee
DPN - Demand Promissory Note
DRAT - Debt Recovery Appellate tribunal
DRI - Differential Rate of Interest
DSCR - Debt Service Coverage Ratio
EDI - Electronic Data Interchange
EMI - Equated Monthly Instalments
EPS - Earnings Per Share
ESOP - Employee Stock Options
FEDAI - Foreign Exchange Dealers Association of India
FFMC - Full Fledged Money Changers
FOB - Free on Board
LIBOR - London Inter Bank Operations Rate
MIBOR - Mumbai Inter Bank Operations Rate
MOU - Memorandum of Understanding
MCA - Ministry of Company Affairs
NPV - Net Present Value
OCB - Overseas Corporate Bodies
POA - Power of Attorney
RKBY - Rashtriya Krishi Bima Yojana
SEBI - Securities and Exchange Board of India
LAF - Liquidity Adjustment Facility
IDBI - Industrial Development Bank of India
BCSBI - Banking Codes and Standards Board of India
IRDA - Insurance Regulatory Development Authority
DICGC - Deposit Insurance and Credit Guarantee Corporation
SPV - Special Purpose Vehicle
29
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
CRISIL - Credit Rating Information Services of India Limited

ICRA - Investment Information and Credit Rating Agency of India Limited
CARE - Credit Analysis and Research Limited
MCX - Multi Commodity Exchange
CCIL - Clearing Corporation of India Limited
OTCEI - Over the Counter Exchange of India
EFT - Electronic Funds Transfer
ARF - Asset Reconstruction Fund
MSS - Market Stabilisation Scheme
CRAR - Capital to Risk Assets Ratio
FSDC - Financial Stability and Development Council
SCARDB - State Cooperative Agriculture and Rural Development Banks
LERMS - Liberalised Exchange Rate Management System
BOT - Balance of Trade
CAC - Capital account convertibility
NDS - Negotiated Dealing System
PART IX
01. Arbitrate is the practice of switching short term funds from one investment to another
in order to obtain the best returns. Also the act of buying all the lower price and reselling
at the higher price
02. Arbitration is referring a dispute to a third, unbiased party for settlement.
03. Bench marking is a management methodology based on the principle that an efficient
practice in one industry should be applicable to other industries
04. Base period is the time period used as the base from which to calculate an index
number or a growth rate
05. Black economy is that part ofa country's economic activity which is next recorded in the
national income accounts; although it does involve the production of goods and services
06. Black market is a secret sale of goods or currency violating government rules related to
pricing, quota, rationing, property, welfare etc.
07. Black nationalism is a movement advocating the establishment of a separate black
nation with the United States
08. Botttom line is the most important tact in a situation
09. Brain storming is the technique used for idea generation in which a team of persons
put forward new ideas freely and spontaneously
10. Brainwashing is the technique of changing a person's ideas, beliefs and attitudes by
force, ranging from physical torture to psychological pressure
11. Branch loyalty is the repeated purchase of a particular branch of a product by the
combination of quality and price
12. Bullion means gold, silver or other precious metals in bulk; i.e. in the form of ingots or bars
rather than in coin
13. Capitation fee is the money arbitrarily collected by professional colleges and self financing
educational institutions for admitting students to their courses
30
14. Collateral is the money or property which is used as a guarantee that someone will repay
a loan
15. Communication gap is a situation in the process of communication when no
meaningful exchange of ideas or information takes place. This may be due to the physical
or mental differences between the parties involved in the communication
16. Credit is granting the use or possession of goods and services without immediate payment.
17. Curtain raiser is a journalistic term to denote background stories and features of a
forthcoming event published in order to create enthusiasm
18. Cybernetics is the study of communication and control of machines and animals.
Norbert
19. Weiner, an American mathematician introduced the term cybernetics in 1948
20. Dear money mean high rates of interest and a dear money policy carried out by a
monetary authority would be one of restricting the money supply in the interest of
reducing inflation
21. Devaluation is the reduction of the official rate at which one currency is exchanged
for another
22. Disposable income is the personal income including transfer payment after all direct
taxes have been deducted
23. Drug holiday is a medical term denoting the discontinuance of a drug for limited period
of time for evaluating the effect or side effect
24. Dry dock is a dock in which a ship can lie out of water for repairing the parts below its
waterline
25. Dry farming is the process of growing crops in semi and regions without irrigation and
sufficient rainfall
26. Dumping is the sale of a commodity on a foreign market at a price below marginal cost
27. Embezzlement is the offence committed when someone entrusted with another's money
or property illegally takes it for personal use. It is different from robbery
28. Embossing is the process by which a raised design is stamped or pressed on the surface of
materials like metal, leather, wood, paper etc.
29. E publishing is the production and distribution of different media products in digital
format
30. Floor crossing is changing one's allegiance from one party to another especially in
legislatures. The expression originated in the context that in most of the legislatures the
ruling party and opposition sit facing each other in the floor of the house
31. Flow chart is a diagram which shows the sequence of steps to be followed for solving
a particular problem, usually in algorithm
32. Free lunch is something that costs nothing. The expression comes from the old practice of
offering free lunches to those who brought drinks. This is often used in negative
constructions
33. Fringe benefits mean the rewards for employment over and above the wages paid e.g.
goods at a discount, subsidized meals, arrangements etc.
34. Griffin goods are goods which do not obey the law of demand viz. that less is bought
as price rises
35. Global warming is an increase over a period of the average temperature of earth's
atmosphere and oceans. The greenhouse effect is attributed as the main reason
for the phenomenon. Average global temperature since the late 19th century is taken
(plus or minus) for assessing the effect of global warming
31
36. Gold ETF is gold exchange traded funds and they are the instruments that trade like
shares and are backed by physical gold holdings
37. Mail merge is the process of linking a document or letter with a required data file in such
a way that different people will get letters with appropriate details
38. Moratorium is the temporarily sopping of an activity or postponement or the time for
payment of debts or financial obligations
39. Netizen is a new term coined by linking the terms - internet and citizen. In the modern
age of information technology, any citizen who regularly uses the internet can be called as
a netizen.
40. Outsourcing is the system of contracting information technology related jobs like
translation, transcription, digitization, data conversion, software development , call
centre services etc. to outside agencies. The work may be done by the agencies within
the country or outside
41. Per capita income is the total income of a group divided by the number of people in
the group
42. Personal property is the temporary or movable property as distinguished from real
property
43. Plagiarism is the act of illegally copying and using another person's writings, ideas,
inventories etc., and presenting it as one's own.
44. Portfolio is the collection of securities held by an investor
45. Recession is a downturn in the business cycle characterized by two successive quarters of
negative rates of growth in the real gross national product
46. Soft currency is a currency whose exchange rate is tending to fall because of persistent
balance of payment deficits of because of the building up of speculative selling of
the currency in expectation of a change in its exchange rate
47. Soft loan is a loan bearing either no rate of interest or an interest rate which is below
the true cost of the capital lent.
48. Straight time is the number of working hours fixed as a standard for given work period
49. Tax avoidance is arranging one's financial affairs within the law so as to minimize taxation
liabilities
50. Tax evasion is failing to meet actual tax liabilities
51. Truck system is a system in which wages are paid in goods or kind rather than money
52. Watermark is a design applied to paper when it is made. It can be seen by holding the
paper up to the light. Currency notes and postage stamps carry a watermark to prevent
forgery
32
PART X
BUDGET TERMS
01. Appropriation bill is a bill that enables withdrawal of money from the consolidated fund
to pay off expenses. These are instruments that Parliament clears after the demand for
grants has been voted by the Lok Sabha
02. Bank credit includes loans, cash credit and overdrafts and inland bills and foreign bills
purchased and discounted
03. Bill is a draft legislative proposal which becomes an act when passed by both houses of
Parliament and assented to by the President
04. Budget deficit is a part of the fiscal deficit and it represents the borrowing requirement
of the centre
05. Budget estimates - The estimates of government spending on various sectors during
the year plus income in the form of tax revenues
06. Capital revenues - Expenses incurred on acquisition of assets by the government
07. Capital receipts - Include loans raised by center from the market, government
borrowings from Reserve Bank of India and proceeds from disinvestment
08. Consolidated fund - includes all revenues received by Government, loans raised and
receipts from recoveries of loans granted by it.
09. Consumer Price Index - is a price index covering the prices of consumer goods
10. Contingency fund - is used by the government in emergencies to meet unforeseen
expenditures, that cannot wait for Parliament authorization
11. Corporate tax - is levied on the profits of firms, as distinct from taxation of the
incomes of their owners
12. Current account deficit - excess of expenditure over receip0ts on current account in a
country's balance of payments
13. Current account surplus - excess or receipts over expenditure on current account in a
country's balance of payments
14. Direct taxes - are levied on the consumers directly. These include income tax, corporate
tax and
15. capital gains tax
16. Disposable income - Income minus income tax. This is income available in your
hands for expenditure
17. Disinvestment - The dilution or selling of the government stake (ownership) in public
sector undertakings
18. Excise duties - are levied on items manufactured within the country and are paid
by the manufacturers.
19. Finance bill- Government's plans for imposing new taxes, modifying of the existing tax
structure or continuing the existing tax structure beyond the period approved by the
Parliament
20. Fiscal deficit - difference between the revenue receipts and total expenditure
21. Foreign direct investment - is made in India by a company incorporated abroad,
through a branch or a subsidiary company set up in India
33
22. Foreign Institutional Investor - an institution established outside India which proposes to
invest in India
23. GDP - Total market value of finished goods and services produced in the country in a given
year
24. Gross National Product - GDP plus income of residents from investments made abroad
minus income earned by foreigners in domestic market
25. Indirect taxes - are charged on goods produced, imported or exported in the country.
These taxes
26. include excise and customs duties
27. Inflation - Inflation rate is the percentage rate of change in the price level
28. National debt - Total outstanding borrowings of the central government exchequer
29. Peak rate - the higher rate of customs duty applicable on an item
30. Per capita income - the national income of a country, or region, divided by its population
31. Progressive tax structure - a tax structure in which the marginal tax rate increases as the
level of income increases
32. Revenue expenditure - expenses incurred for functioning of government departments,
interest on debt, subsidies etc
33. Revenue receipts - include tax and duties collected by government and interest and
dividend on investments made by government
34. Revised estimates - difference between budget estimates and the actual figures
pertaining to the economy
35. Sales tax - a tax levied at a percentage of retail sales
36. Vote on account - it is a sort of interim budget where the government presents accounts
required to keep the machinery running until the next government takes over
37. Wholesale price index - Prices of goods that are dealt with wholesale (mostly
inputs to production, rather than finished commodities)
34
Kisan Vikas Patra

History
Kisan Vikas Patra (KVP) a certificate savings scheme was launched by the Government on
1st April, 1988.
The scheme provided facility of unlimited investment by way of purchase of certificates from
post offices in various denominations.
The maturity period of the scheme when launched was 5 years and the money invested
doubled on maturity.
The scheme was very popular among the investors and the percentage share of gross
collections secured in KVP was in the range of 9 % to 29 % against the total collections
received under all National Savings Schemes in the country.
Gross collections under the scheme in the year 2010-11 were Rs. 21631.16 crores which was
9 % of the total gross collections during the year. In the year of its closure, the scheme
secured gross collections of Rs. 7575.95 crores (April 2011 to November 2011).
The Re-launched Present KVP

Kisan Vikas Patra(KVP) is a risk free investment scheme re-launched in November, 2014, which was
discontinued in 1st December 2011. This scheme is for people who are less risk averse and are
looking for stable income. Under this scheme money doubles in 100 months, interest is compounded
annually. Interest rate is said to be at 8.7%.
How to invest in Kisan Vikas Patra 2014?

The scheme is offered by India post office. One can fill the form and submit it along with cash or
cheque and your photograph. The certificate will be issued only after the cheque has been realized
by the Post Office.
The certificate will be issued by Post office called as "Kisan Vikas Patra" with your name, amount,
date of maturity and amount on the date of maturity.
35
Who can invest in KVP?
Eligible :
Any citizen of India can invest in Kisan Vikas Patra in his name, or on behalf of a minor.
A trust is also eligible to invest in KVP.
Two adults can jointly buy KVP.
Not Eligible:
Business entities such as a company or institutions.

NRIs or HUF (Hindu Undivided Family) are also not eligible to invest in KVP.
Features of KVP
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Investment can be made in denomination of Rs. 1000, 5000, 10,000 and 50,000.
There is no upper ceiling on investment.
KVP comes with a maturity of eight years four months or 100 months.
The certificates can be issued in single or joint names and can be transferred from one
person to any other person.
KVP can be transfer from one post office to another anywhere in India and of nomination
will be available.
One can avail loans on KVP from the banks and in other case where security is required to
be deposited.
Liquidity: Investor can encash his certificates after the lock-in period of 2 years and 6
months.
After the lock-in period it can be redeemed every 6 monthly interval.
Simple interest is calculated for initial 2.5 years, after which it is compounded annually.
No PAN number is required for investment in Kisan Vikas Patra
Tax Benefit:
There are no tax benefits since interest accrued on Kisan Vikas Patra is taxable.
The only KVP Tax benefit is that there is no Wealth Tax liable on Kisan Vikas Patra. KVP has
complete exemption from Wealth-Tax.
Tax is not Deducted at Source(TDS), One has to pay tax on the interest accrued.
36
Comparing with bank deposits
Taking three other relevant traits liquidity, convenience and tax advantage the new
KVP is reasonably liquid. Investors can come out after the minimum lock-in period in eight
equal instalments. The KVP can also be given as collateral. Unlike PPF and NSCs, the KVP
does not have a tax advantage. Interest on it is fully taxable.
Bank deposits are superior to KVP in terms of returns three year fixed deposits offer 9 per
cent and some banks even more. The argument that deposit rates are set to fall over the
medium-term is no doubt valid, but one expects the banks to safeguard their depositors
concerns by floating innovative schemes. It is also certain that the corporate bond market
will revive and be a conduit for infrastructure finance. This will matter to senior citizens and
others who want a fixed, steady return in the form of investment in infrastructure bonds.
Bank deposits are liquid, absolutely secure and highly accessible to most middle-class
investors. They have a minimum tax advantage practically restricted to interest on savings
accounts.
For those who have no access to banks, investment in KVP may be a worthwhile proposition.
Having no tax concessions, the KVP as in investment is for those who do not pay taxes at all
or are in the lower tax bracket.
The biggest advantage claimed for the KVP indeed its USP is that it is a bearer bond,
transferable by endorsement and delivery. This confers unmatched anonymity to the holder
of the instrument.
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37
NITI Aayog
NITI Aayog or National Institution for Transforming India Aayog is the replacement of Planning
Commission of India, marking the end of the Nehruvian institution that pioneered Indias five-year
planned development approach.
The primary job of the new bodydescribed as a Think-Tankwill be to advise the government on
social and economic issues. Unlike the Nehruvian plan panel, the new body will not have the power
to disburse funds to central ministries and state governments.
National Institution for Transforming India (NITI) Aayog has been created in accordance to the
announcement made by the Prime Minister Narendra Modi on 15 August 2014. On the
Independence Day, he announced that the government will replace the Planning Commission which
was established on 15 March 1950 through a Cabinet Resolution.
Further to revamp the Planning Commission, the Prime Minister met with Chief Ministers and
Governors of various States on 7 December 2014 and discussed their opinions on the same to
separate the process of governance from the strategy of governance.
Difference between Planning Commission and NITI Aayog

NITI Aayog aims to foster cooperative federalism through structured support initiatives and
mechanisms with the States on a continuous basis, recognizing that strong states make a strong
nation. States will continue to receive support for removing bottlenecks and will be able to approach
the new institution for consulting and capacity building. Further, the states will also tailor their plans
to suit their needs under more than 40 centrally sponsored schemes.
Instead of top down approach in planning commission, the new body will adopt a Bottom Up
approach, where decisions will be taken at the local level and then endorsed at the Central level.
This also reflects new government's approach to develop mechanisms to formulate credible plans at
the village level and aggregate these progressively at higher levels of Government. NITI Aayog will
also serve as a Think Tank of the Government and will provide Centre and States with relevant
strategic and technical advice across the spectrum of key elements of policy.
The declared intent to empower states has played well as non-NDA chief ministers have also
supported the dissolution of Planning Commission.
38
Composition of NITI Aayog
Chairperson: Prime Minister

Vice Chairman: Arvind Panagariya(Expected)
Governing Council: CM's (States) & Lieutenant Governors (Union Territories)
Regional Councils: Formed on need-basis, incorporates CM's & Lt Governors of the region
Members: Full-time basis
Part-Time Members: Max 2, Rotational, from relevant institutions
Ex-officio Members:Max 4 from council of ministers, nominated by PM
Special Invitees: Experts, specialists, practitioners with domain knowledge
CEO: Appointed by PM for fixed tenure
Secretariat: If necessary
PM will head the body and its governing council will include all chief ministers and lieutenant
governors, in line with the PM's thrust on cooperative federalism that advocates involving states in
the Centres decision making
Arvind Panagariya is an Indian-American economist and Professor of Economics at Columbia
University and an ex-Chief Economist at the Asian Development Bank.
Functions
An administration paradigm in which the Government is an "enabler" rather than a

"provider of first and last resort."
Progress from "food security" to focus on a mix of agricultural production, as well as actual
returns that farmers get from their produce.
Ensure that India is an active player in the debates and deliberations on the global
commons.
Ensure that the economically vibrant middle-class remains engaged, and its potential is fully
realized.
Leverage India's pool of entrepreneurial, scientific and intellectual human capital.
Incorporate the significant geo-economic and geo-political strength of the Non-Resident
Indian Community.
Use urbanization as an opportunity to create a wholesome and secure habitat through the
use of modern technology.
Use technology to reduce opacity and potential for misadventures in governance
39
Objectives
To foster cooperative federalism through structured support initiatives and mechanisms

with the States on a continuous basis, recognizing that strong States make a strong nation.
To develop mechanisms to formulate credible plans at the village level and aggregate these
progressively at higher levels of government.
To ensure, on areas that are specifically referred to it, that the interests of national security
are incorporated in economic strategy and policy.
To pay special attention to the sections of our society that may be at risk of not benefitting
adequately from economic progress.
To design strategic and long term policy and programme frameworks and initiatives, and
monitor their progress and their efficacy. The lessons learnt through monitoring and
feedback will be used for making innovative improvements, including necessary mid-course
corrections.
To provide advice and encourage partnerships between key stakeholders and national and
international like-minded Think Tanks, as well as educational and policy research
institutions.
To create a knowledge, innovation and entrepreneurial support system through a
collaborative community of national and international experts, practitioners and other
partners.
To offer a platform for resolution of inter-sectoral and inter-departmental issues in order to
accelerate the implementation of the development agenda.
To maintain a state-of-the-art Resource Centre, be a repository of research on good
governance and best practices in sustainable and equitable development as well as help
their dissemination to stake-holders.
To actively monitor and evaluate the implementation of programmes and initiatives,
including the identification of the needed resources so as to strengthen the probability of
success and scope of delivery.
To focus on technology upgradation and capacity building for implementation of
programmes and initiatives.
To undertake other activities as may be necessary in order to further the execution of the
national development agenda, and the objectives mentioned above.
The Prime Minister had recently called meeting of all chief ministers to deliberate on the
structure of the new body which would replace the Commission.
The majority view that emerged after the meeting was in favour of decentralisation of
power.
40
CONCLUSION
Congress-ruled states, however, had reservations about dismantling an institution which was set up
by the first Prime Minister Jawaharlal Nehru and they suggested restructuring of the existing body,
rather than a complete replacement.
Incidentally, Nehru himself is said to have faced resistance to the idea of setting up of the Planning
Commission, but it went on to become a major platform for successive governments to formulate
and push forward economic policies and other development plans.
Finance Minister had then said that a principle of 'cooperative federalism' is being followed in
setting up the new body in place of Planning Commission.
"Our government stands by the principle of cooperative federalism, empowering states, least
number of central schemes and more state schemes," Jaitley said while replying to a debate in the
Lok Sabha.
The Planning Commission was set up by a simple government resolution in March 1950 and has
withstood many political and economic upheavals, as also some occasional controversies, including
those related to its poverty estimates as also about a huge toilet renovation bill and foreign tour
expenses of its last Deputy Chairman.
The plan panel has commissioned 12 five-year plans and six annual plans involving fund outlays of
over Rs 200 lakh crore in its 65-year-history.
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41
IBPS CLERK 2014 All GA Questions Asked

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Who is the ICC ODI Team of the year captain? - MS Dhoni

Ritu Rani is related to which sports? - Hockey
What is the UIDAI deadline? - March, 2015
Which wildlife sanctuary is a World Heritage Site? - Manas Wildlife Sanctuary
What is the full form of GDP? - Gross Domestic Product
What is balance sheet? - A statement of the assets, liabilities, and capital of a business or other
organization at a particular point in time
What is the capital of Malaysia? - Kuala Lumpu
Who is Union Environment Minister? - Prakash Javadekar
What is the Currency of Japan? - Yen
Where is the UNICEF head office? - New York
Which multinational game event was played in Incheon?- Asian Games
VDU full form - Visual Display Unit
DVD full form - Digital Versatile Disc
Full form of GUI? - Graphic User Interface
EPROM stands for? - erasable programmable read only memory
Which of these is not an indirect tax? - Income tax
Mortgage Loan are given on which type of property? - Real Property
Who is Union Tourism minister? - Dr. Mahesh Sharma
One byte has how many bits? - 8
National education day is celebrated on? - 11 November
Certificate of commencement is required for which type of organization? - Public Company
NBFCs are regulated by? - RBI
RRBs are sponsored by? - PSUs
Coral field in which state? Gujarat
Who is the Union Rural Development Minister? - Ch. Birender Singh
NEFT full form - National Electronic Funds Transfer
GST Full Form - Goods and Services Tax
Sardar Singh is related to which sport? - Hockey
IRNSS 1C is of which country? - India
What is the capital of Fiji? - Suva
World Standards Day is celebrated on? - 14 Oct
What is the currency of New Zealand? - New Zealand Dollar
2018 Asian games will be held in ? Indonesia
National Disaster Management Authority head is? - Narendra Modi
Asian Development Bank Headquarters is located in ? - Metro Manila, Philippines
Who received Nobel prize in economics? - Jean Tirole
WHO headquarter is located in? - Geneva, Switzerland
Longest international boundary from which Country? - CanadaUnited States border
Full form of ISDN - Integrated Services Digital Network
Which film is the official entry for India in OSCAR? - Liar's Dice
What does CTRL+2 do in MS-Excel? - Apply or Remove Bold Formatting
Linux is an - Open Source OS
Full form of HTML - HYPERTEXT MARKUP LANGUAGE
What is the currency of Egypt - Egyptian Pound
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URL Full Form - Uniform Resource Locator

World Pneumonia Day celebrated on - November 12
KYC implemented under which act? - Banking Regulation ACT 1949
Unity day celebrated on the birth Anniversary of? - Sardar Vallabhbhai Patel
Hindu Kush mountains located in between which countries? - Afganisthan and Pakistan
NAV stands for - Net Asset Value
WAN full form - Wide Area Network
Who is the National Women Commission chairman? Lalitha Kumarmangalm
DOS stands for Disk Operating System
Full form of VIRUS - Vital Information Resources Under Siege
LSI stands for Large Scale integration Computer
NPPA stands for - National Pharmaceutical Pricing Authority
LTV stands for Loan To Value
IPO stands for Initial Public Offering
Banking Ombudsman committee appointed by? - RBI
Who frame Monetary policies? - RBI
Validity of Kisan Credit Card - 5 Years
Who is the Union Information and Broadcasting Minister ? - Arun Jaitley
What is the Capital of Cambodia? - Phnom Penh
NBFC stands for - Non-Banking Financial Company
Who is Normon Gordan? - South-African Cricketer
Who will appoint Lokpal Director? - Central Vigilance Commission
RBI granted Banking licence to which new bank? - IDFC/Bandhan
TDS stands for - Tax Deducted at Source
FEMA stands for Foreign Exchange Management Act
Hand-In-Hand was a military exercise between? - India and China
G20 Summit 2016 will be held in which country? - China
Age limit for minors to operate saving account 10 years
What is the currency of Italy? - Euro
What is the capital of Sweden? - Stockholm
Full Form of KYC and BC in banking - know your customer and business correspondent
National Broadcasting Day is celebrated on - 12th November
Playing it my way is the autobiography of? - Sachin Tendulkar
Which state declared tourism year in 2015? - Madhya Pradesh
What is Amortization? - The paying off of debt with a fixed repayment schedule in regular
instalments over a period of time. (Investopedia Definition)
In India who is the Last resort of bank? - RBI
Captain of India in ICC world cup? MS Dhoni
Where was World chess championship held? - Sochi, Russia
Which state has highest rural population as per census 2011?- U.P
Commonwealth games 2018 will be held in - Queensland, Australia
UNESCO headquarter is situated at - Place de Fontenoy, Paris, France
Which one is big Mb,Gb,Kb,Tb - TB
What is the duration of PPF? - 15 Years
MOM stands for? - Mars Orbiter Mission
Full form of NPA - Non-Performing Assets
Full form of URL? - Uniform Resource Locator
What is processes data?
43
92.
93.
94.
95.
Full form of RTGS? - Real Time Gross Settlement

Full form of DOS? -Disk Operating System.
Full form of CRT? - Cathode Ray Tube
Dr. Manmohan Singh won Top Japan's Award - The Grand Cordon of the Order of the Paulownia
Flowers 2014
96. Recently banned Militant Kamatpur Liberation Organisation operates in? - North East India
97. Full form of NVRAM? - Non-Volatile Random Access Memory.
98. Definition of Inflation? - A general increase in prices and fall in the purchasing value of money.
99. Which country helped India to build LSRAM-8 Missile ? Israel
100.
What is the limit of free monthly ATM transaction under PMJDY ? - 4
101.
Who is the current health minister ? - J.P.Nadda
102.
Rauf dance is related to which state ? - Jammu and Kashmir
103.
Who is named as the test cricketer of the year? - Mitchell Johnson
104.
Where is the headquarter of SIDBI ? Lucknow
105.
Who is the founder of Alibaba ? - Jack Ma
106.
Who received Shanti Swaroop Bhatnagar Award in Medical Sciences 2014? - Dr. Anurag
Agarwal
107.
Where is NANGA Mountain situated? - Pakistan
108.
Who received the Nobel Prize in Medicine in 2014? - John O'Keefe, May-Britt Moser and
Edvard I. Moser
109.
National Dairy Development Board is located in? - Anand, Gujarat
110.
What is the Validity of Kisan Vikas Patra? - 8 years and 7 months
111.
UNIDO Headquarter is situated at ? - Vienna, Austria
112.
Who is the new Chief Justice of India? - Justice HL Dattu
113.
Unbreakable is the Autobiography of? - MC Mary Kom
114.
Who received the Euromoney Central Bank Governor of the Year ? - Raghuram Rajan
115.
What is the currency of Indonesia? - Indonesian Rupiah
116.
Pakistan recently tied up in Military agreement with which country? - China
117.
Swachch Bharat logo was design by whom? - Anant Khasbardar form Maharashtra
118.
Which Indian cricketer named Bradman Foundation Honorees? - Sachin Tendulkar
119.
Richard Flanagan won Man Booker prize in 2014 for which book? - The Narrow Road To The
Deep North
120.
According to 2011 Census most of the slums is in which city? - Mumbai
121.
What is the full form of RTGS? - Real time gross settlements
122.
What is the capital of Canada? - Ottawa
123.
Pankaj Adwani is related with which game? - Billiards
124.
FCCB full form - Foreign Currency Convertible Bond
125.
Nasik situated on bank of which river? - Godavari
126.
Air Force Day is celebrated on? 8th October
127.
What is the Capital of Saudi Arabia? Riyadh
128.
Recently, ING Vysya Bank merged with which bank? Kotak Mahindra Bank
129.
Who received Nobel Prize in Literature? - Patrick Modiano
130.
What is the use of KYC? Money Laundering
131.
Which company launched the email service named "Verse"? - IBM
132.
Who topped the medal tally in Asian Games 2014? China
133.
BIOS full form? Basic Input Output System
134.
What is the Currency of Brazil? Brazil Real
135.
What is the full form of IPO? Initial Public Offering
44
136.
What is the Middle 3 digits in MICR? Bank code
137.
Which Constituency did Nitin Gadkari stand for in 2014 Lok-Sabha Election? Nagpur
138.
NPA full form? Non Performing Assets
139.
Where is UNDP Headquarter located? New York
140.
Women Kabaddi won which medal in Asian Games 2014? Gold Medal
141.
Seema Poonia is related to which sport? Discus Throw
142.
On What basis interest on Savings Account is given? Daily basis
143.
Before PM Narendra Modi who has given speech in Hindi in United Nations? Atal Bihari
Vajpayee
144.
NAV full form Net Asset Value
145.
Richard Flanagan belongs to which country? - Australian
146.
Gujarat govt. declared Vadodara as? State Cultural Capital
147.
Full form of CASA? - Current A/c Savings A/c
148.
Who is the Union Science and Technology Minister? Harsh Vardhan
149.
Tinku Luka is related to which Sport? Relay Race (Athlete)
150.
Percentage of TDS without PAN CARD? - 20%
151.
What is the overdraft amount under PMDJY? - 5000 Rs.
152.
Which of the following is not in the list of top 10 richest person ?
153.
In IFFI, Rajnikanth was awarded by whom? - Amitabh Bachchan
154.
What is the full form of NCR? - National Capital Region
155.
Sarita Devi is related with which sport? - Boxing
156.
Nalanda University is situated in which state? - Rajgir, Bihar
157.
UNIDO headquarters is located in? - Vienna, Austria
158.
What is the maximum amount of investment in KVP? - No Limit
159.
Ghoomar Dance is associated with which state? - Rajasthan
160.
Where is ISRO headquarter situated ? - Bengaluru
161.
What is the currency of China? Yuan or Renminbi
162.
International Human Rights Day is celebrated on? - 10 December
163.
What is EBOLA? - An infectious and generally fatal disease
164.
Which of the following river is in MP? - Narmada River
165.
What is the total number of PSU Bank in India? - 21
166.
What is the full form of VAT? - Value Added Tax
167.
RTGS full form- Real Time Gross Settlement
168.
Maximum amount for BSBDA-Small Account? - 50 Thousand Rupees
169.
Half Girlfriend is written by? - Chetan Bhagat
170.
Lee Chong Wei is related with which sport? - Badminton
171.
Bangkok is the capital of which country? - Thailand
172.
What is the capital of Bhutan? - Thimpu
173.
Who appoints Banking Ombudsmen? - Reserve Bank of India
174.
Bhaichung Bhutia is related to which sport? - Football
175.
Who can open a Small Account(Laghu Account) - People who don't have valid residential
proof as per KYC
176.
What is the target of opening bank accounts under PMJDY? - 10 Crore
177.
What is the currency of Oman? - Omani Rial
178.
What is the capital of Kuwait? - Kuwait City
179.
UNICEF Headquarters located in? - New York
180.
International Day for the Elimination of Violence against Women is celebrated on? - 25
November
45
181.
Who is the State Minister Of Skill Development & Entrepreneurship? - Rajiv Pratap Rudy
182.
Anirban Lahiri is related to which sport? - Golf
183.
Commonwealth Science Conference was held in? - Bangalore, India
184.
18th SAARC Summit was held in? - Kathmandu, Nepal
185.
Sardar Vallabhbhai Patel's birth anniversary is also celebrated as? - National Unity Day
186.
Who is the Union Minister of Information and Broadcasting? - Arun Jaitley
187.
Rajnath Singh contested from which constituency in Lok Sabha Election 2014? - Ghaziabad
188.
2016 Summer Olympics will be held in? - Rio de Janeiro, Brazil
189.
31st October is celebrated as? - World Savings Day
190.
Sansad Adarsh Gram Yojana was launched on whose birth anniversary? - Jayaprakash
Narayan
191.
Who will provide the 1 Lakh Insurance Cover in PMJDY? - Central Govt.
192.
Davis Cup is related to which sport? - Tennis
193.
What is the last date of withdrawing Pre-2005 Notes? January, 2015
194.
United Nations Day is celebrated on? - October 24
195.
Vishwanathan Anand is related to which sport? - Chess
196.
What is the capital of Austria? - Vienna
197.
What was the budget of Mars Mission of India? - 450 Crore
198.
Who wrote Crusader or Conspirator? Coalgate and Other Truths ? - PC Parakh
199.
SAARC 2016 will be held in ? - Islamabad, Pakistan
200.
Who headed the Financial Inclusion Committee? - Nachiket Mor
201.
What is the currency of Srilanka? - Rupee
202.
Dongfeng missile is from which country? - China
203.
Who is the author of The Dramatic Decade: The Indira Years? - President Pranab Mukherjee
204.
International Day of Non Violence is celebrated on? - 2nd October
205.
What is the Current Sex Ratio of India ? - 943 females per 1000 males
206.
Who is the Insurance regulator in India? - IRDA
207.
2018 Hockey World Cup will be held in? - India
208.
Britt and Edvard Moser won Nobel prize in? - Medicine
209.
Ryder Cup is associated with? - Golf
210.
How is PMJDY different from the earlier Financial Inclusion Plan (Swabhimaan)?- PMJDY
focuses on coverage of households as against the earlier plan which focused on coverage of villages.
211.
Insurance cover in PMJDY given by?- Accidental cover of 1,00,000 by HDFC Ergo and Life
insurance cover of 30,000 by LIC.
212.
Prime Lending Rate is decided by? - RBI
213.
IRDA Headquarter is situated in? - Hyderabad, Telengana
214.
Which Agreement was signed in 18th SAARC Summit? - Agreement on Energy Cooperation
215.
What is the reason of withdrawing Pre-2005 Notes? - To curb the fake currency
216.
What is the population density of India in 2011 Census? - 382/SqKm
217.
India won the gold medal in Hockey in Asian Games by defeating which country? Pakistan
218.
Who along with Sachin Tendulkar became the latest honourees of the Bradman
foundation? - Steve Waugh
219.
Who made the biggest thermal power plant in India? - Adani Group
220.
Who is Veenapani Chawla? - Famous Theater Artist
221.
Hornbill Festival is related to which state? - Nagaland
222.
Who won the Nobel prize in Economics? -Jean Tirole
223.
Commercial Papers are issued by? - RBI(Not yet clarified)
46
224.
What is the capital of Iraq? - Baghdad
225.
National Science Center is situated in? - Delhi, India
226.
2016 Euro Cup will be held in? - France
227.
What is the currency of Saudi Arabia? -Saudi Riyal
228.
Which Day celebrated on 19 November? - World Toilet Day
229.
What is the Full form of IFSC? - Indian Financial System Code
230.
First three digit in MICR represents - City
231.
Who initiated Micro-finance in India? - NABARD
232.
What is the share of State Governments in Regional Rural Banks? - 15%
233.
What is the objective of PMJDY? - Covering all households in the country with banking
facilities and having a bank account for each household
234.
What is the full form of SEZ? - Special Economic Zone
235.
What is the Lock In Period of Fixed Deposit? - 5 Years
236.
What is the full form of IRS? - Indian Remote Sensing
237.
What is the full form of GST? - Goods and Service Tax
238.
World AIDS Day is celebrated on? - 1st December
239.
UNEP headquarters is located in? - Nairobi
240.
What is the full form of MITC? - Most Important Terms and Conditions
241.
What is the range of CIBIL Credit Report? - 300 to 900 points
242.
Who is the UN Goodwill Ambassador of South Asia (HeForShe Campaign) - Farhan Akhtar
243.
Dronacharya Award is given in which field? - Coaching in Sports
244.
What does E stands for in EBT? - Electronic
245.
What is the currency of Argentina? - Argetine Peso
246.
What is the capital of Australia? - Canberra
247.
Who was Tapan Raychaudhuri? - Indian Historian
248.
Sarjubala Devi is related to which sport? - Boxing
249.
What is the full form of CBS? - Core Banking Solution
250.
RTGS is used for ? - High-value transactions that require immediate clearing
251.
What was the Constituency of Sushma Swaraj? - Vidisha, MP
252.
What is the name of First Mars Mission by NASA? - Mariner 4
253.
The book Lowland is written by? - Jhumpa Lahiri
254.
What is the revised target a/c in PMJDY? - 10Crore
255.
Who is the runner-up of Vijay Hazare Trophy 2014? - Punjab
256.
WHO headquarters is situated in? - Geneva, Switzerland
257.
Who received BCCI Lifetime Achievement Award in 2014? - Dilip Vengsarkar
258.
Who is the president of Brazil? - Dilma Rousseff
259.
What is the minimum age of Minor A/c? - 10Years
260.
What is the minimum paid-up capital for Payment Banks? - 100 Crore
261.
Lucknow is situated in banks of which river? - Gomati
262.
Antyodaya Diwas is celebrated on who's remembrance? - Deen Dayal Upadhyay
263.
2016 G20 Summit will be held in? - China
264.
What is the minimum lock-in period of KVP? - 2Years 6Months
265.
Who received the Nobel Prize in Economics? - Jean Tirole
266.
Who received Shanti Swaroop Bhatnagar Prize in Physical Science? - Dr. Pratap
Raychaudhuri and Dr. Sadiqali Abbas Rangwala
267.
What is the maximum validity of Kisan Vikas Patra? - 100 months
268.
What is the full form of EVM? - Electronic Voting Machine
47
Page 7
269.
Which is the largest public sector insurance company in India? - Life Insurance Corporation
of India
270.Person with Disability Day is celebrated on? - 3rd December
271.Recently NTPC tied up with which state to set up a 1000 mw Plant? - Andhra Pradesh
272.What is the name of the book authored by Rajamohan Gandhi? - Prince of Gujarat: The
Extraordinary Story of Prince Gopaldas Desai (1887-1951)
273.USA is developing which cities in to Smart cities in India? - Allahabad, Ajmer and Vishakhapattnam
274.What is the full form of RTGS? - Real Time Gross Settlement
275.In FEMA, M stands for what? - Management
276.What is the capital of Afganistan? - Kabul
277.In 2009, the Sex ratio was 900, how much it increased in 2011? - 40 ( Some said wrong option was
there)
278.In MICR the middle 3 digits represent? - Bank Code
279.What is the name of the book authored by Yashwardhan Shukla? - Gods of Antarctica
280.What is the currency of Bhutan? - Ngultrum
281.What is the amount of Accidental Insurance cover in Pradhan Mantri Jan Dhan Yojana? - 1 Lakh
Rupees
282.What is the full for MMID? - Mobile Money Identifier
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48
ATM or Automated Teller Machines or Automated Banking Machines(in Canada) is an E-banking

machine which performs financial transactions without the help of a Bank Employee. Exampundit won't
confuse you with tough words instead we will use basic logic and words to describe.
ATM Usage Growth(Non-economical Cause):
In the recent years, the trend of ATM has grown all over India. Now there are many economical/financial
expert analysis on the growth of ATM usage, especially in Urban Areas but What are the very basic noneconomic causes of the rise?
Now in the urban areas, people usually avoids the Branch unless it is necessary. Hence, people in a large
amount who are living a busy scheduled life, usually prefers the ATMs. This is an original exampundit
content. Now, this is not an expert analysis, but a very basic concept which any interviewer can ask you.
Trivia: For every 10 lakh of its population, the US has 1,390 ATMs, UK has 530 ATMs and China has 211
ATMs, while India has only 98 ATMs for the same number of people.
Types of ATMs in India:

Basically there are 3 types of ATMs by nature are there in India. ATMs which are owned by Banks, Brown
Label ATMs and White-Label ATMs. On the other hand, we have 3 types of ATMs by Location.
ATMs by Nature of Installation:

Bank ATMs: The ATMs which are Owned, Managed, Installed by Banks. The most common, you see in
the Bank Branch building.
Brown-Label ATMs: Now, Brown-Label ATMs are little different from Bank ATMs. They are outsourced to
a company, who manages, installs and look after the ATMs. However, these ATMs has a Logo of the
Bank in it, which makes sure, that ATM is installed by the Bank. Mostly these were used by Private Sector
Banks in India.
Some of the High-Tech Brown-Label ATMs swallows the Card till the transactions are over. You can check
them out in metro cities under various famous banks like, Standard Chattered, HDFC, Yes Bank, ICICI
Bank.
White-Label ATMs: White-Label ATMs are similar to Brown-Label ATMs except the fact, they don't have
any Bank Logo in them. Now, Tata Indicash, currently famous WLATM, do have a logo of Indicash in it.
Now, if they don't have anything written in them, then how will we understand its a ATM? Isn't it? Also
WL-ATMs has Advertisements which Brown-Label or Bank ATMs NEVER HAD.
49
ATMs By Location:
Onsite ATMs: Onsite ATMs are the ATMs we see with the Branch Building. When you get into HDFC or
SBI, you will often see ATMs. These are Onsite ATMs.
Offsite ATMs: Offsite ATMs are the ATMs we see in some separate house/building. These ATMs are not
attached to the bank branch building but in the areas of Bank Branch.
Stand Alone ATMs: Stand-alone ATMs are similar to Offsite ATMs except the fact, they are just the
Machines and Nothing Else. Now where do we see them? We usually go to Supermarkets or Shopping
Malls, and we notice ATMs. They are the most common example of Stand-Alone ATMs.
Definition of Cheque Truncation:
Truncation is the process in which an issued cheque is not moved physically from the drawer
bank branch to the drawee bank branch. Instead an electronic image of the cheque is sent to
the drawee branch through the clearing house along with relevant information like data on the
MICR band, date of presentation, presenting bank, etc.
Cheque truncation thus eliminates the requirement of physically moving documents across bank
branches except unavoidable circumstances. This effectively eliminates the associated cost of
movement of the physical cheques, reduces the time required for their collection and brings
elegance to the entire activity of cheque processing.
RBI decided to prescribe certain benchmarks towards achieving standardisation of cheques

known as CTS-2010 standard, specifications.
Role of NPCI:
RBI has mandated NPCI to operationalise CTS. NPCI will act as a Cheque Processing Centre (CPC)
and will process electronic cheques and images received from member banks
Mandatory features applicable:
50
Paper: Paper should have protection against alterations by having chemical sensitivity to acids,
alkalis, bleaches and solvents giving a visible result after a fraudulent attack. CTS-2010 Standard
paper should not glow under Ultra-Violet (UV) light i.e., it should be UV dull.
Watermark: All cheques shall carry a standardized watermark, with the words CTS-INDIA. It
should be oval in shape and diameter could be 2.6 to 3.0 cms. Each cheque must hold atleast
one full watermark.
VOID pantograph: Pantograph with hidden / embedded COPY or VOID feature shall be
included in the cheques. This feature should be clearly visible in photocopies and scanned colour
images as a deterrent against colour photocopy or scanned colour images of a cheque.
Banks logo: Member Banks logo shall be printed in ultraviolet (UV) ink. The logo will be
captured by / visible in UV-enabled scanners / lamps. It will establish genuineness of a cheque.
Mandating colours and background: Light / Pastel colours so that Print / Dynamic Contrast
Ratio (PCR / DCR) is more than 60% for ensuring better quality and content of images.
Prohibiting alterations / corrections on cheques: No changes / corrections should be carried

out on the CTS cheques (other than for date validation purposes, if required). For any change in
the payees name, courtesy amount or legal amount etc., fresh cheque forms should be used by
customers. This requirement is for cheques issued under CTS only and no other cheques.
Printing of account field: Cheques used in current accounts and corporate customers, should be
issued with the account number field pre-printed. Courtesy amount means amount in figures
and legal amount means in words.
Importance of CTS:
Speeds up the process of collection of cheques resulting in better service to customers
Reduces the scope for clearing-related frauds or loss of instruments in transit
Lowers the cost of collection of cheques
Removes reconciliation-related and logistics-related problems
The homogeneity in security features also act as a deterrent against cheque frauds.
Clearing Methods:
51
Speed Clearing is an arrangement to clear intercity non-at par items.
Grid Clearing is an arrangement that allows banks to present/receive cheques from/to multiple
cities in a Single Clearing House through a service branch at one city.
What benefit does CTS provide to Bank's Customers?
It reduces the time taken to clear the cheques as well gives banks to offer better customer
services and increases operational efficiency by decreasing on overheads involved in the
physical cheque clearing process which was used earlier.
It also provides better reconciliation and fraud prevention.
List of Important Financial Government Bodies in India under

Ministry of Finance
A
Agricultural and Processed Food Products Export Development Authority (APEDA)
B
Basic Chemicals, Pharmaceuticals and Cosmetics Export Promotion Council (CHEMEXCIL)
C
Central Registry of Securitization Asset Reconstruction and Security Interest of India (CERSAI)
Cashew Export Promotion Council of India (CEPCI)
Chemical and Allied Products Export Promotion Council (CAPEXIL)
Council for Leather Exports
Customs Excise and Service Tax Appellate Tribunal (CESTAT)
E
Engineering Export Promotion Council (EEPC)
Export Credit Guarantee Corporation of India Limited (ECGC)
Export Inspection Council (EIC)
52
F
Federation of Indian Export Organisations (FIEO)
G
Gem and Jewellery Export Promotion Council (GJEPC)
I
Indian Diamond Institute
Indian Institute of Foreign Trade (IIFT)
Indian Institute of Packaging (IIP)
Indian Rubber Manufacturers Research Association (IRMRA)
Indian Telephone Industries Limited (ITI Limited)
India Trade Promotion Organization (ITPO)
Income Tax Appellate Tribunal (ITAT)
M
Marine Products Export Development Authority (MPEDA)
Minerals and Metals Trading Corporation Limited (MMTC)
N
National Scheduled Tribes Finance and Development Corporation (NSTFDC)
National Institute of Securities Markets (NISM)
National Backward Classes Finance & Development Corporation (NBCFDC)
National Centre for Trade Information (NCTI)
National Institute of Design
National Numbering Organisation (EAN-India)
National Productivity Council (NPC)
National Manufacturing Competitiveness Council (NMCC)
National Institute of Financial Management
P
Pension Fund Regulatory and Development Authority
Plastics Export Promotion Council (PLEXCONCIL)
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Project Exports Promotion Council of India (PEPC)
S
Sports Goods Export Promotion Council (SGEPC)
State Trading Corporation of India Limited (STCI)
Securities and Exchange Board of India
Stock Holding Corporation of India Ltd (SHCIL)
What is Prepaid-Payment Instrument?
Goods or services can be purchased in a prepaid manner by paying the money through cash,
credit card or debit from a bank account beforehand and storing it at a virtual place. Payment is
done against that amount when required.
Presently, they are be issued as smart cards, magnetic stripe cards, internet accounts, internet
wallets, internet purse, mobile accounts, mobile wallets, mobile purse and paper vouchers.
Types of Prepaid-Payment Instruments
The pre-paid payment instruments are generally of four types: (1) closed-system payment instruments
(2) Semi-Closed system payment instruments (3) Semi-Open system payment instruments and (4) Open
system payment instruments.
Closed System Payment Instruments: These are payment instruments generally issued by
business establishments for use at that establishment only or for availing services from a service
provider. These instruments are generally not re-loadable and do not permit cash withdrawal.
Examples of such instruments are gift vouchers issued by certain merchant establishments and
telephone calling cards. The mobile pre-paid value may also be considered as closed-system
prepaid payment instrument though they can be used for availing additional value added
services.
Semi-Closed System Payment Instruments: These are payment instruments which are
redeemable at a group of establishments associated with a particular shopping mall, tourist
resorts etc. or at establishments and service providers listed out by the issuer. These
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instruments are generally issued by third party service providers. These instruments can be
issued in re-loadable or non-reloadable formats but do not permit cash withdrawal.
Semi-open System Payment Instruments: These are payment instruments which can be used
for purchase of goods and services at any card accepting merchant locations (Point of sale
terminals). These instruments can be issued in re-loadable or non-reloadable formats but they
do not permit cash withdrawal. Examples of such cards are the gift cards issued by banks which
are operated and settled through recognized card companies.
Open System Payment Instruments: These are payment instruments which can be used for
purchase of goods and services. These instruments can be issued in re-loadable or nonreloadable formats. These instruments also permit cash withdrawal at ATMs. Examples of such
cards are the Payroll cards and travel cards issued by banks which are operated and settled
through recognized card companies.
Norms for setting Up Prepaid-Payment Instruments
The Reserve Bank of India (RBI) on 3 December 2014 relaxed the norms for Pre-paid Payment
Instruments (PPI) and doubled the limit of PPI from 50000 rupees to one lakh rupees.
The move would help in achieving the objective of limiting cash transactions in the system.
Highlights of RBI norms on PPI
The maximum validity of gift cards has been enhanced from one year to three years. Other
provisions of PPI guidelines with respect to gift cards will continue.
RBI also allowed issue of multiple PPIs by banks from fully-KYC compliant bank accounts for
dependent or family members.
Only one card can be issued to one beneficiary.
The bank may put in place mechanisms to monitor and report suspicious transactions on these
PPIs to Financial Intelligence Unit India (FIU-IND).
The central bank also permitted banks to issue rupee denominated PPIs for visiting foreign
nationals and NRIs.
However, this would be subject to certain conditions like the cards can be issued by overseas
branches of banks in India directly or it can be issued by co-branding with the exchange
houses/money transmitters up to a maximum amount of 2 lakh rupees by loading from a KYC
compliant bank account.
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Such PPIs should be activated by the bank only after the traveller arrives in India and cash
withdrawal will be restricted to 50000 rupees per month.
The cards should be issued strictly for use in India and transactions should be settled in Indian
rupee.
Indian Currency
The Indian rupee symbol '`' (officially adopted in 2010) is derived from the Devanagari consonant ""
(ra) and the Latin letter "R". The first series of coins with the rupee symbol was launched on 8 July 2011.
Currency paper is composed of cotton and cotton rag.
RBI issues all the bank notes except Rupees 1 Notes. These notes are issued by Ministry of Finance.
Recently RBI launched a website Paisa-Bolta-Hai to raise awareness of counterfeit or fake currency
among users of the Indian Rupees and also the citizen of India.
The main security features of current banknotes are:
Watermark - White side panel of notes has Mahatma Gandhi watermark.
Security thread - All notes have a silver or green security band with inscriptions (visible when
held against light) of Bharat in Hindi and "RBI" in English.
Latent image - On notes of denominations of Rs.20 and upwards, a vertical band on the right
side of the Mahatma Gandhis portrait contains a latent image showing the respective
denominational value numerally (visible only when the note is held horizontally at eye level).
Micro lettering - Numeral denominational value is visible under magnifying glass between
security thread and latent image.
Intaglio - On notes with denominations of INR5 and upwards the portrait of Mahatma Gandhi,
the Reserve Bank seal, guarantee and promise clause, Ashoka Pillar Emblem on the left and the
RBI Governor's signature are printed in intaglio (raised print).
Identification mark - On the left of the watermark window, different shapes are printed for
various denominations INR20: vertical rectangle, INR50: square, INR100: triangle, INR500: circle,
INR1,000: diamond). This also helps the visually impaired to identify the denomination.
Fluorescence - Number panels glow under ultraviolet light.
Optically variable ink - Notes of Rs.500 and Rs.1,000 denominations have their numerals printed
in optically variable ink. The number appears green when the note is held flat, but changes to
blue when viewed at an angle.
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See-through register - Floral designs printed on the front and the back of the note coincide and
perfectly overlap each other when viewed against light.
EURion constellation - A pattern of symbols found on the banknote helps software detect the
presence of a banknote in a digital image, preventing its reproduction with devices such as
colour photocopiers.
NOTE: The EURion constellation (also known as Omron rings) is a pattern of symbols incorporated into a
number of banknote designs worldwide since about 1996. It is added to help imaging software detect the
presence of a banknote in a digital image.
DIFFERENT KINDS OF NOTES
Genuine Notes: Such notes must have a water mark of Asoka Pillar, security thread and serial
number along with alphabet. They have distinctive colours.
Soiled notes: The currency note which has become dirty due to its use or may be in 2 pieces. No
portion of such note should be missing. These notes are accepted for exchange without any
restrictions by the banks.
Mutilated notes: Such currency notes that are composed of various pieces or they are cut notes
of which some portion is missing. These notes are exchanged only by the currency chest
branches of banks.
Single/double numbered notes: Notes up to Rs.5 are single numbered while the notes above
Rs.5 are double numbered notes.
RBIS CLEAN NOTE POLICY
RBI had announced Clean Note Policy in January, 1999.
For withdrawing soiled notes from circulation and pumping fresh notes into circulation, the RBI
introduced various changes in the system and procedures related to currency management
which include mechanization of the currency verification and processing as also shredding and
briquetting for destruction of soiled and mutilated notes.
Rules and Instructions Issued by RBI:
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Not to staple bank notes
To Tender soiled notes to the Reserve Bank in unstapled condition,
To use bands instead of staple pins,
To issue only clean notes to members of public,
To open select currency chest branches on Sundays to provide exchange facility to members of
public all over the county,
To provide unrestricted facility for exchange of soiled and mutilated notes to members of public.
Banks should sort notes into re-issuables and non-issuables, and issue only clean notes to public.
Soiled notes in unstapled condition may be tendered at RBI in inward remittances through
Currency Chests
Banks should stop writing of any kind on watermark window of bank notes.
Coins of 25 Paise and Below Withdrawal
Govt, of India has decided to withdraw the coins of 25 paise and below from circulation from
June 30, 2011. Coins of 25 paise and below are not accepted for exchange at the bank branches
from July 1, 2011 onward.
Withdrawal of Pre-2005 Notes:
Reserve Bank of India decided to withdraw from circulation all banknotes issued prior to 2005 as
they have fewer security features as compared to banknotes printed after 2005.
The withdrawal exercise is in conformity with the standard international practice of not having
multiple series of notes in circulation at the same time.
The RBI has already been withdrawing these banknotes in a routine manner through banks.
It is estimated that the volume of such banknotes (pre-2005) in circulation is not significant
enough to impact the general public in a large way and the members of public may exchange
the pre-2005 series banknotes at bank branches at their convenience.
The deadline for exchanging pre-2005 currency notes of various denominations, including
Rs.500 and Rs.1,000, has been extended by another six months till June 30, 2015.
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What is Retail Banking?
Retail banking refers to the dealing of commercial banks with individual customers.
ACCOUNTS
Current A/c
Current account is one of the two component accounts of the balance of payments of a nation.
It records the trade of goods and services of an economy with other countries of the world.
Savings A/c
Salary A/c
It is usually opened by the Company, where your salary is deposited. You can maintain ZERO
Balance.
Minor A/c
Minimum 10 years old to open this account.
Recurring A/c
It can be opened by any Individual for regular fixed amount every month into their Recurring
Deposit account and earn interest at the rate applicable to Fixed Deposits.
Fixed or Term Deposits A/c
A type of savings account or certificate of deposit where deposits are made for a specified
period of time and that pay out a fixed rate of interest.
Joint A/c
Can be opened by two or more individuals.
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Basic Savings Bank A/c
Zero Balance A/c
Pension A/c
Zero Balance, usually opened for Pension purpose.
OTHER PRODUCTS
Bancassurance
Banks partners with Insurance Company to sell Insurance to Bank Customers. United Bank of
India has with TATA Life Insurance.
Cheque
Demand Draft
Mobile Banking
Usually operated by Customer through their Tablets or Phones via Application By Bank.
CANMOBILE is an Android/Windows/iOs App by Canara Bank.
M-Wallet
Prepaid wallet can be used for various payments.
Tele Banking
Banking done by calling up Banks Toll-Free Number.
Locker
CARDS
Debit Card
Credit Card
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ATM Card
Travellers Card
Used for travelling abroad.
LOANS
Home Loan
Personal Loan
Pension Loan
Car Loan
Vehicle Loan
Loan Against Gold
Loan against Mortgage
Educational Loan
Online Products
Internet Banking
Bill Payments
Fund Transfer
NEFT, RTGS
Tax Payments
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Top 10 Current Affairs of 2014
10. Formation of Telengana

Telengana Formation or Formally known as Andhra Pradesh Reorganisation Act, 2014 is an Act of Indian
Parliament proclaiming the bifurcation of the Andhra Pradesh state into two states, Telangana and the
residuary Andhra Pradesh. The Act consists of all aspects of division of assets and liabilities, and finalizes
the boundaries of the proposed new states and the status of Hyderabad. The Bill was previously rejected
by Andhra Pradesh Legislative Assembly on January 30, 2014.
The bill was passed in the Lok Sabha on 18 February 2014 and in the Rajya Sabha on the 20 February
2014. The bill was attested by the President of India, Pranab Mukherjee on 1 March 2014 and published
in the official Gazette. The appointed day of the new states was 2 June 2014.
9. Kashmir Floods
In September 2014, the Kashmir region witnessed disastrous floods across majority of its districts caused
by torrential rainfall. The Indian administrated Jammu and Kashmir, as well as Azad Kashmir, GilgitBaltistan and Punjab in Pakistan, were affected by these floods. By September 24, 2014, nearly 277
people in India and 280 people in Pakistan had died due to the floods.
Home Secretary of India Anil Goswami said 82 aircraft and helicopters, 10 battalions of Border Security
Force, 329 columns of Indian Army and 300 boats were used in the rescue operations. According to
home secretary, 10 VSAT systems were air lifted to restore critical telecom towers and a satellite link
from Bardula had been provided for crucial communication.
Prime Minister of India, Narendra Modi offered an assistance of `745 crore (US$120 million) to the state
government, this was in addition to `1100 crore (US$170 million) already earmarked for the disaster.
8. GST
What is GST?
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Goods and Services Tax -- GST -- is a comprehensive tax levy on manufacture, sale and consumption of
goods and services at a national level.
Through a tax credit mechanism, this tax is collected on value-added goods and services at each stage of
sale or purchase in the supply chain.
The system allows the set-off of GST paid on the procurement of goods and services against the GST
which is payable on the supply of goods or services. However, the end consumer bears this tax as he is
the last person in the supply chain.
Experts say that GST is likely to improve tax collections and boost India's economic development by
breaking tax barriers between States and integrating India through a uniform tax rate.
What are the benefits of GST?

Under GST, the taxation burden will be divided equitably between manufacturing and services, through
a lower tax rate by increasing the tax base and minimizing exemptions.
It is expected to help build a transparent and corruption-free tax administration. GST will be is levied
only at the destination point, and not at various points (from manufacturing to retail outlets).
Currently, a manufacturer needs to pay tax when a finished product moves out from a factory, and it is
again taxed at the retail outlet when sold.
How will it benefit the Centre and the States?

It is estimated that India will gain $15 billion a year by implementing the Goods and Services Tax as it
would promote exports, raise employment and boost growth. It will divide the tax burden equitably
between manufacturing and services.
What are the benefits of GST for individuals and companies?

In the GST system, both Central and State taxes will be collected at the point of sale. Both components
(the Central and State GST) will be charged on the manufacturing cost. This will benefit individuals as
prices are likely to come down. Lower prices will lead to more consumption, thereby helping companies.
7. Jayalalitha Asset Case

Jayalalithaa Jayaram, who is a former Chief Minister of Tamil Nadu convicted for misusing her office
during her tenure of 1991-96 to amass properties worth `66.65 crores.
Jayalalithaa was accused of misusing her office during her first tenure as chief minister during 1991-96
to amass properties worth `66.65 crores and depositing the amount in her proxy accounts.
63
A raid in her Poes garden residence in 1997 recovered 800 kg (1,800 lb) silver, 28 kg (62 lb) gold, 750
pairs of shoes, 10,500 sarees, 91 watches and other valuables. The valuables were kept in a vault in
Reserve Bank of India in Chennai. The opposition party petitioned to request the court to take the
control of the assets, but the special judge John Michael Cunha who inspected the assets on 7 January
2014, ordered the assets to be transferred to Bangalore.
The judgement of the case was pronounced on 27 September 2014 in the Special Court which convicted
all four including Jayalalithaa guilty. Chaos prevailed outside the court premises as well in Tamil Nadu on
account of the judgement getting delayed from 11 am to 3 pm. There was further confusion when the
sentence was not announced till 5 p.m. Soon after the judgement, violence erupted across Tamil Nadu.
Sporadic incidents of violence were reported across the state initiated by the AIADMK party men and
loyalists. Most shops, restaurants, malls and movie halls remained closed, while public transport was
totally stopped.
Subsequently, at a meeting of AIADMK, O. Panneerselvam was chosen as the Chief Minister of Tamil
Nadu.
On 17 October 2014, Supreme Court granted two months bail and suspended her sentence in
Disproportionate Assets Case.
6. Saradha Group Financial Scam

A major financial scam and political scandal caused by the collapse of a Ponzi scheme run by Saradha
Group, a consortium of over 200 private companies that was believed to be running collective
investment schemes popularly but incorrectly referred to as chit funds in Eastern India.
The group collected around `200 to `300 billion (US$46 billion) from over 1.7 million depositors before
it collapsed in April 2013. In the aftermath of the scandal, the State Government of West Bengal where
the Saradha Group and most of its investors were based instituted an inquiry commission to investigate
the collapse. The State government also set up a fund of `5 billion (US$79 million) to ensure that lowincome investors were not bankrupted.
The Central Government through the Income Tax Department and Enforcement Directorate launched a
multi-agency probe to investigate the Saradha scam and similar Ponzi schemes. In May 2014, the
Supreme Court of India, citing inter-state ramifications, possible international money laundering, serious
regulatory failures and alleged political nexus, transferred all investigations into the Saradha Scam and
other Ponzi schemes to the Central Bureau of Investigation (CBI), India's federal investigative agency.
Many prominent personalities were arrested for their involvement in the scam including two Members
of Parliament (MP) - Kunal Ghosh and Srinjoy Bose, former West Bengal Director General of Police Rajat
Majumdar, a top football club official Debabrata Sarkar, Sports and Transport minister in the West
Bengal Government Madan Mitra.
64
5. Recognition of Transgender in India

National Legal Services Authority (NALSA) v. Union of India is a landmark decision by the Supreme Court
of India, declared transgenders to be the 'third gender', affirmed that the fundamental rights granted
under the Constitution of India will be equally applicable on the transgenders and gave them the right to
self-identification of gender as male, female or third-gender.
Moreover, the court also held that the transgenders to be treated as socially and economically backward
classes and will be granted reservation in admissions in educational institutions and jobs.
4. Swachh Bharat Abhiyan

It is a national campaign by the Government of India, covering 4041 statutory towns, to clean the
streets, roads and infrastructure of the country.
This campaign was officially launched on 2 October 2014 at Rajghat, New Delhi, where Prime Minister
Narendra Modi himself cleaned the road. It is India's biggest ever cleanliness drive and 3 million
government employees and school and college students of India participated in this event.
Earlier it was known as Nirmal Bharat Abhiyaan. Originally launched in 1999.
The government will be launching a nationwide real-time monitoring system for toilets constructed
under the Swachh Bharat Abhiyan. With this system the government aims to attain a 100% open
defecation free India by 2019.
The components of the programme are:

a) Construction of individual sanitary latrines for households below the poverty line with subsidy
(80%) where demand exists.
b) Conversion of dry latrines into low-cost sanitary latrines.
c) Construction of exclusive village sanitary complexes for women providing facilities for hand
pumping, bathing, sanitation and washing on a selective basis where there is not adequate land
or space within houses and where village panchayats are willing to maintain the facilities.
d) Setting up of sanitary marts.
e) Total sanitation of villages through the construction of drains, soakage pits, solid and liquid
waste disposal.
f) Intensive campaign for awareness generation and health education to create a felt need for
personal, household and environmental sanitation facilities
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Specific objectives are:
Elimination of open defecation

Conversion of insanitary toilets to pour flush toilets
Eradication of manual scavenging
100% collection and scientific processing/disposal/reuse/recycling of municipal solid waste
A behavioural change in people regarding healthy sanitation practices
Generation of awareness among citizens about sanitation and its linkages with public health
Supporting urban local bodies in designing, executing and operating waste disposal systems
Facilitating private-sector participation in capital expenditure and operation and maintenance
costs for sanitary facilities
3. MAKE IN INDIA
Make in India is an international marketing strategy, conceptualized by the Prime Minister of India,
Narendra Modi on 25 September 2014 to attract investments from businesses around the world, and in
the process, strengthen India's manufacturing sector.
The campaign has been concentrated to fulfill the purpose of job creation, enforcement to secondary
and tertiary sector, boosting the national economy, converting India to a self-reliant country and to give
the Indian economy global recognition.
The 'Make in India' also attempts to enforce the inflow of FDI in the country and improve services by
partial privatization of loss-making government firms. The campaign is completely under control of the
Central Government of India.
The major objective behind this initiative is to focus upon the heavy industries and public enterprises
while generating employment, empowering secondary and tertiary sector and utilizing the human
resource present in India.
The most common example is our website exampundit.in which has an .in domain which is a made in
India.
Japan will contribute to Prime Minister Narendra Modi's 'Make in India' initiative to support India in
becoming a base of economic growth for the Indo-Pacific region and the world.
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2. Pradhan Mantri Jan Dhan Yojana

It is a scheme for comprehensive financial inclusion launched by the Prime Minister of India, Narendra
Modi on 28 August 2014 He had announced this scheme on his first Independence Day speech on 15
August 2014.
Run by Department of Financial Services, Ministry of Finance, on the inauguration day, 1.5 Crore (15
million) bank accounts were opened under this scheme.
By 28 January 2015, 12.58 crore accounts were opened, with around `10590 crore (US$1.7 billion) were
deposited under the scheme, which also has an option for opening new bank accounts with zero
balance.
Under the scheme:
1. Account holders will be provided zero-balance bank account with RuPay debit card, in
addition to accidental insurance cover of `1 lakh(to be given by 'HDFC Ergo').
2. Those who open accounts by January 26, 2015 over and above the `1 lakh accident,
they will be given life insurance cover of `30,000(to be given by LIC).
3. After Six months of opening of the bank account, holders can avail `5,000 overdraft
from the bank.
4. With the introduction of new technology introduced by National Payments Corporation
of India (NPCI), a person can transfer funds, check balance through a normal phone
which was earlier limited only to smart phones so far.
5. Mobile banking for the poor would be available through National Unified USSD Platform
(NUUP) for which all banks and mobile companies have come together
The scheme has been criticized by many experts from the banking sector as an effort to please voters
that has created unnecessary work-burden on the public-sector banks.
The Guinness World Records has recognised the achievements made under the PMJDY and has given a
certificate stating that the most bank accounts opened in one week as part of the Financial Inclusion
Campaign is 18,096,130 and was achieved by the department of financial services, government of India
from Aug 23-Aug 29, 2014.
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1. Mars Orbiter Mission

Mangalyaan is a spacecraft orbiting Mars since 24 September 2014. It was launched on 5 November
2013 by the Indian Space Research Organisation (ISRO).
It is India's first interplanetary mission and ISRO has become the fourth space agency to reach Mars,
after the Soviet space program, NASA, and the European Space Agency. It is the first Asian nation to
reach Mars orbit, and the first nation to do so on its first attempt.
The Mars Orbiter Mission probe lifted-off from the First Launch Pad at Satish Dhawan Space Centre
(Sriharikota Range SHAR), Andhra Pradesh, using a Polar Satellite Launch Vehicle (PSLV) rocket C25.
The MOM mission concept began with a feasibility study in 2010, after the launch of lunar satellite
Chandrayaan-1 in 2008. The government of India approved the project on 3 August 2012, after the
Indian Space Research Organisation completed `125 crore (US$20 million) of required studies for the
orbiter. The total project cost may be up to `454 crore (US$71 million). The satellite costs `153 crore
(US$24 million) and the rest of the budget has been attributed to ground stations and relay upgrades
that will be used for other ISRO projects.
The total cost of the mission was approximately `450 Crore (US$73 million), making it the leastexpensive Mars mission to date. The low cost of the mission was ascribed by K. Radhakrishnan, the
chairman of ISRO, to various factors, including a "modular approach", few ground tests and long (18-20
hour) working days for scientists.
Hollywood movie Gravity costed more that MOM and the Total Budget of Mom is equivalent to less
than a single bus ride for each of India's population of 1.2 billion.
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IBPS Clerk 2014 15 Interview PDF

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IBPS CLERK 2014-15

BASIC Questions and Tips in Interview:

i) Tell us something about yourself / Brief yourself / Introduce Yourself.

ii) How do you Handle Pressure?

iv) Where do you see yourself after 5/3 years?

v) Why banking when you are from Engineering/Technical field?

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Facts On Payment Banks

History of ATMs and White Label ATMsWL -ATM/WLA

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All the Best. Visit www.exampundit.in for more PDF materials

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BANKING AWARENESS - ExamPundit

Scheduled commercial banks

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Public sector banks

State Bank of India and associate banks

25. Industrial Finance Corporation of India is a development bank

New Private sector banks

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Regional Rural banks

40. Regional Rural banks were established on 2.10.1975

Local Area banks

48. Local area banks were established on 24.08.1996

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Non Banking Finance Companies

Life Insurance Corporation of India

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National Bank for agriculture and Rural Development

88. NABARD was established in 1982 under an act of parliament

Export and Import Bank of India

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ALCO - asset liability committee

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Laxmi Commercial Bank merged with Canara Bank

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13. The treasury bills are issued at a - discount

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ISCI - International Standard Industrial Classification

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SLR - Statutory Liquidity Ratio

BANKING TERMS - ABBREVIATIONS

ALM - Asset Liability Management

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CRISIL - Credit Rating Information Services of India Limited

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