Escolar Documentos
Profissional Documentos
Cultura Documentos
which provides an insurance cover of Rs.1lakh per depositor per bank in case of bank failure. It also
provides guarantee of repayment amount in default of small loans given by banks.
Export Credit Guarantee Corporation of India (ECGC): ECGC is a Govt. body which provides
export credit insurance facilities to exporters and banks in India. It encourages Indian exporters by
giving them credit insurance covers.
Banking Codes and Standards Board of India: It is an industry watch dog set up by RBI to monitor
and assess the compliance with codes and minimum standards of service to individual customers, as
prescribed by the RBI.
Credit Information Report: A Credit Information Report is a factual record of a borrower’s credit
payment history compiled from information received from different credit grantors. Its purpose is to
help credit grantors make informed lending decisions-quickly and objectively.
Credit Rating: Credit Rating is an assessment of the probability of default on payment of interest
and principal on a debt instrument. In simple words, it ranks the company or country’s ability to
meet their debt obligations.
Non Banking Financial Company (NBFC): These are companies which have functions similar to
banking like accepting deposits and making loans. However they do not have license for banking,
although they are regulated by RBI.
Insurance Regulatory & Development Authority (IRDA): It is apex body formed under
Sec.4 of IRDA Act 1999 to protect the interests of the policyholders to regulate promotes and
ensures orderly growth of the insurance industry in India.
Financial Stability & Development Council: This is the apex financial regulator of our country.
Headed by Finance Minister, it coordinates and regulates to four financial regulators of the country
i.e. RBI, SEBI, IRDA and PFRDA to ensure that all of them operate and function in harmony to
promote the growth and stability of Indian Economy.
Indian Banks Association (IBA): It is the official association of all the banks operating in
India. It acts as a bridge between banks on one hand and government and staff unions on the other.
Presently Mr. K.R. Kamath, CMD of Punjab National Bank is Chairman of IBA.
There are certain documents used for payment in business transactions and are Transferred freely
from one person to another. Such documents are called negotiable Instruments like cheque, bank
draft, bill of exchange, promissory notes etc. Thus we can say negotiable Instruments are a
transferable document where negotiable means transferable and Instrument means document.
According to section 13 of the negotiable Instruments act 1881. A negotiable Instrument means
promissory note bill of exchange or cheque payable either to order or to bearer.
Features of a Negotiable Instrument
1. It is a written document
2. A negotiable Instrument payable to bearer is transferable merely by delivery whereas a
Negotiable Instrument payable to order is transferable by endorsement and delivery.
3. The holder of a Negotiable Instrument can sue upon it in his own name.
4. Its works in the same manner as money and like money it may also be transferred from one
person to another.
5. The Transferor does not need to give notice to any person at the time of transferring the
Instrument.
6. It is the simplest and most convenient mode of assignment of a debt.
7. The title to the Instrument received by a bonafide transferee is not affected by defect in the title of
the transferor.
A. Negotiable Instruments
1. Promissory note
2. Bill of exchange
3. Cheque
4. Exchequer bill
5. Circular note
6. Dividend warrant
7. Share warrant
8. Bearer debenture
9. Bank note
10. Bank draft
B. Non Negotiable Instruments
1. Money order
2. Postal order
3. Deposit receipt
4. Share certificate
C. Quasi Negotiable Instruments
1. Bill of lading
2. Dock warrant
3. Carriers receipt
4. Letters of credit
5. Railway receipt
Types of Negotiable Instruments
According to the negotiable Instruments act 1881 there are just three types of Negotiable
Instruments example promissory note, bill of exchange and cheque, however many other documents
have also been recognized as negotiable instruments on the basis of custom and usage like treasury
bills, share warrant etc. They possess the features of Negotiability.
Promissory note
A promissory note is an Instrument in writing containing an unconditional undertaking signed by
the maker to pay a certain sum of money to or to the other of a certain person. This type of a
document is called a promissory note.
Features of promissory note
1. A promissory note is unconditional
2. It is made and signed by the debtor.
4. A promissory note is made as payable in the Currency of the country
5. A promissory note drawn for a specified duration should be adequately stamped According to its
value.
6. A promissory note should be drawn for the payment of a specified sum.
Bill of exchange
A bill of exchange is an Instrument in writing, unconditional order signed by the maker directing a
certain person to pay a certain sum of money only to or to the other of certain person or to the bearer
of the Instrument.
Features of bill of exchange
1. A bill must be in writing, duly signed by its drawer accepted by its drawee and properly stamped
as per Indian stamp act.
2. It must contain an order to pay words like please pay rs.5000 on demand and oblige are not used.
3. The order must be unconditional.
4. The order must be to pay money and money alone.
5. The sum payable mentioned must be certain or capable of being made certain.
6. The parties to bill must be certain.
Cheque
A cheque is a bill of exchange drawn on a specified banker and not expressed to be payable
otherwise than on demand. It is an unconditional order in writing is drawn by a customer on his
bank. Requesting the specifying bank to pay on demand a certain sum of money to a person named
in the cheque or to the bearer or to the order of a stated person.
A cheque being a bill of exchange must possess the following requirements.
1. A cheque must be drawn upon a specified banker
2. A cheque must be payable on demand.
3. A cheque must be signed by the drawer.
4. A cheque must be an unconditional order to pay a certain amount of money.
5. A cheque must be dated.
Types of cheque
1. Open cheque: - A cheque is called open when it is possible to get cash over the counter at the
bank.
2. Crossed cheque: - Since open cheque is subject to risk of theft it is dangerous to issue such
cheques. This risk can be avoided by issuing other types of cheque called crossed cheque.
3. Bearer cheque: - A cheque which is Payable to any person who presents it for payment at the
bank counter is called bearer cheque.
4. Order cheque: - An order cheque is one which is payable to a particular person. In such a cheque
the word bearer may be cut out or cancelled and the word order may be written. The payee can
transfer an order cheque to someone else by singing his or her name on the back of it.
Quasi Negotiable Instruments
Quasi Negotiable Instruments are those Instruments which can be transferred by endorsement and
delivery but the transferee does not get a better title that of the transferor.
Therefore they cannot be classified as negotiable Instruments and hence the negotiable Instruments
act is not applicable to them.
Repo Rate: Repo rate means a purchase and sale of agreement. It is a contract to buy securities and
then sell them back at an agreed future date and price. It is thus revenue for short term investment of
surplus funds. From RBI point of view it is called a short term lending and from banks point of view
it is called short term borrowing.
Reverse Repo rate : Reverse Repo Rate is an instrument of borrowing funds for a short period and
involves selling a security and simultaneously agreeing to repurchase it at a stated future date for
slightly higher price. From RBI point of view it is called a short term borrowing and from banks
point of view it is called a short term lending.
Group Company : As per RBI for the purpose of FDI, two or more enterprise which , directly or
indirectly , are in position to exercise 26% or more of voting rights in other enterprise or appoint
more than 50% of the members of the board of directors in the other enterprises.
Branch Vs Subsidiary: A subsidiary is a separate legal entity from the parent company, although
owned by parent company, has a same legal identity as its parent company , from liability , on the
other hand branch is not a separate legal entity of the parent company and liability wise there is no
limit to the parents company’s liability , RBI has permitted to Foreign Banks to change from Branch
Mode to the Wholly Owned Subsidiaries.
NFS (National Financial Switch): It facilitates interconnectivity between banks’ switches and
interbank payment Gateway for authentication & routing the payment details of various E-
commerce & E-Govt. activities (Retail Banking). Now NFS has been overtaken by NPCI (National
Payment Corporation of India).
SLR (Statutory Liquidity Ratio): This is a minimum Reserve which every bank has to maintain with
itself in the most liquid form to meet any demand of the depositors. Normally Government
securities are purchased to maintain SLR.
Prime Lending Rate (PLR): The term originally indicates the rate of interest at which a bank lends
to favoured customers, i.e. those with high credibility, though this is no longer always the case.
Some variable interest rates may be expressed as a percentage above or below prime rate.
Sub Prime Rate: In India when money is lent below the PLR is known as Sub Prime Rate whereas
in USA when money is lent at rate above the PLR is known as Sub Prime rate.
Base Rate: As per recommendation of Mr. Deepak Mohanty of RBI to bring a complete
transparency in Bank’s lending system, in Indian Banking system the loan were sanctioned to the
large corporate houses even below the PLR and some time it were fixed very low without any
justification. A Base rate recommends that no bank will lend any money below the base rate. With
this there shall be no extra benefits to the large corporate houses. Base rate will be beneficial for the
regulator RBI. Now all Banks will either lend at Base rate or will park money with RBI, under LAF
system. Base rate has been implemented from 1st July, 2010.
GDRs (Global Depository Receipts): It is a dollor denominated instrument, an easy way of raising
funds from foreign countries. It is a mechanism that allows foreign investor to invest in Indian
Companies. Represents a certain number of equity shares on Indian companies. GDRs are issued by
depository usually American Banks & Indian shares are held by custodian in India (like ICICI).
Traded in stock exchanges in Europe or in US or both.
IPO (Initial Public Offer): 1st sale of stock by a company to the public .IPOs offer issued by smaller
younger co. seeking the capital to extend. It can also be done by large company.
FPO (Follow on Public Offer): A public company already listed on an exchange, a supplementary
shares made by a company that is already publicly listed & has gone thru the IPO process, it is also
called as secondary public offering subsequent to the company’s IPO.
Zero Liability Protection: It is a bank guarantee. If your card is lost or stolen you may not be
responsible for unauthorized purchases made with your card if you report the theft promptly. The
Zero liability protection facility is free & automatically available on all bank consumer Credit
Cards.
Vostro Account: When a foreign Bank is opened in the India with Indian Currency is known as
Vostro account e.g. Standard Chartered Bank in India.
SWAPS: It is a transaction where the bank purchases or sells the foreign currency simultaneously,
for different maturities, say purchases of spot and sale of forward or vice versa. Swap contracts
obligate 2 parties to swap or exchange certain specified intervals. Swaps are not the instruments for
raising funds.
Automated Teller Machine (ATM)
Automated Teller Machine (ATM) is a computerized machine that provides the customers the
facility of
checking balance, withdrawing and transferring the funds without visiting the branch of the bank
Important Points to Remember:
Technology Used: Broadband Integrated Service Digital network (BISDN)
Operating systems used in ATMs Primarily: Windows XP Professional and Windows XP
Embedded
Communication Mode: Both Data and Voice
Operates on: layer 2 in OSI Model (Data Link Layer)
Connection Mode: Point-to-Point
Size of ATM Cells: 53 Bytes (48 bytes of data and 5 bytes of header information)
Facilities available at ATMs
Account Information
Cash Deposit
Regular bills payment
Purchase of Re-load Vouchers for Mobiles
Mini/Short Statement
Loan account enquiry
There are two types of cards supported by ATM
ATM Debit Card
Credit Card
ATM Debit Card:
ATM Debit Card is card given by bank to access your account easily using a machine called
Automated Teller Machine (ATM). Debit cards can be used for shopping purposes, without carrying
the money. You can use Debit cards while purchasing, but you must have money in your account.
Purchased amount will be deducted immediately from your account.
Advantages:
No need to carry money with you
You can use it for shopping purpose
No need of filling withdrawal and deposit slips
Money Security: No one can access it without knowing PIN Number
You can access your account from any corner of the world, no need to visit bank branch
Disadvantages:
Sometimes you may face Server-Down Problem
Forgetting of Pin Number
Fees charged for using card in different bank may be expensive
Limitation of cash withdrawal
Credit Card:
Credit card is different from debit card, in debit card you must have money for using it. But for
using credit cards, its not necessary. If you use credit card for purchasing purposes it does not
deduct your money immediately. Bank will pay the vendors and sends the bill to the customer every
month.
MSME
In accordance with the provision of MSMED Act, 2006, the Micro, small and Medium
Enterprise are classified as follow:
1. Manufacturing Enterprises – The enterprise engaged in the manufacturing of goods
pertaining to any industry specified in the first schedule to the industries (Development and
regulation Act,1951) or employing plant and machinery in the process of value addition to the
final product having a distinct name or character or use. The manufacturing Enterprise is
defined in terms of investment in Plant & Machinery.
2. Service Enterprises: The enterprise engaged in providing or rendering of services and are
defined in terms of investment in equipment.
Manufacturing Sector
Enterprises Investments in equipment’s
Micro Enterprises Less than 10lakhs
Small Enterprises More than 10lakhs less than 2crores
Medium Enterprises More than 2crores less than 5crores
NABARD
NABARD is an apex development bank in India established on 12 July,
1982 with an aim of providing services to rural India by increasing the
credit flow for evaluation of agriculture & rural non form sectors.
It was set up by the Reserve Bank of India (RBI) under the chairmanship
of Shri B. Sivaraman.
NABARD is a development bank for providing and regulating credit and
other facilities for the promotion and development of cottages, small
scale industries, development of agriculture, village industries,
handicrafts and other rural crafts
With a view of promoting rural development and securing rural areas, NABARD is entrusted with
1. Providing refinance to lending institutions in rural areas
2. Bringing about or promoting institutional development and
3. Evaluating, monitoring and inspecting the client banks
RBI sold its stake in NABARD to the Government of India, which now holds 99% STAKE.
NABARD is
active in developing financial inclusion policy.
Important Points about NABARD
Head Quarters: Mumbai
Established on: 12 July, 1982
Chairman:
NABARD completed its 25 years on 12 July, 2007
NABARD is active in developing Financial Inclusion
It is India’s specialized bank developed by Shivaramans committee to provide credit in rural areas.
It replaced
the Agricultural Credit Department (ACD) and Rural Planning and Credit Cell (RPCC) of Reserve
bank of
India, and Agricultural Refinance and Development Corporation (ARDC).
NABARD undertakes the monitoring and evolution of projects will be refinanced by it
It provides training for the institutions working for the rural development.
NABARD keeps a check on client institutions
It regulates the cooperative banks and RRB’s
It takes measures for improving credit delivery system, monitoring, schemes credit institutions, and
training
of personnel
Helps the state governments in reaching their targets of providing assistance to eligible institutions
in
agriculture and rural development
FUND TRANSFER SYSTEMS
There are two ways for transferring funds
RTGS (Real Time Gross Settlement)
NEFT (National Electronic Fund Transfer)
Real Time Gross Settlement (RTGS)
RTGS is one of the fastest mode of fund transfer in India through banking channel
RTGS is nothing but transferring of money in real time on gross basis from one bank to other
without
netting. This RTGS is mainly used for large transactions, Minimum amount to be remitted through
this
RTGS is 2 Lakhs and there is no any upper limit
Through RTGS system, money will be remitted for beneficiary account within 2 hours of receiving
the
fund transfer message
edugeeks.in: Govt Jobs | Notifications | Admissions | Online Aptitude Test | IT Jobs | Bank Jobs |
Recruitment
http://edugeeks.in/neft-rtgs-ifsc-banking-awareness-material-for-ibpssbi-po-clerks/ 3/7
Main advantage of fund transferring through RTGS is remitting bank will receive the conformation
message from RBI that money have been transferred to beneficiary’s account
Timings for Transferring Funds through RTGS:
Normal Days: 09:00 hours to 16:30 hours
Week Days: 09:00 hours to 14:00 hours
Processing/Service Charges for RTGS Fund Transfer
Inward Transactions: No Charge
Outward Transactions: Rs.2lakhs to Rs.5lakhs: Rs.30/-
Above Rs.5lakhs: Rs.55/-
Essential Information for RTGS Fund Transfer
Amount to be remitted
Remitting Customer’s account number which is to be debited
Name of the beneficiary bank and branch
Name of the beneficiary customer
Account number of the beneficiary customer
Sender to receiver information
IFSC (Indian Financial System Code) of the receiving branch
This RTGS fund transfer is not available for all branches of banks in India; one can check the
availability of
RTGS system through http://rbidocs.rbi.org.in/rdocs/RTGS/DOCs/RTGEB0112.xls.
National Electronic Fund Transfer (NEFT)
NEFT is an electronic fund transfer system on DNS (Deferred Net Settlement) basis through
netting. This
NEFT will be done in 12 settlements
Timings for Transferring Funds through NEFT:
Normal Days: 08:00 am to 07:00 pm
Week Days: 08:00 am to 01:00 pm
Processing/Service Charges for NEFT Fund Transfer
Inward Transactions: No Charge
Outward Transactions:
Up to Rs.10, 000: Rs.2.50/- + Service Tax
Rs.10, 000 to RS.1lakh: Rs.5/- + Service Tax
RS.1lakh to RS.2lakhs: Rs.15/- + Service Tax
Above RS.2lakhs: Rs.25/- + Service Tax
ADVANTAGES:
Remitter need not send the cheque or DD to the beneficiary
Beneficiary need not visit the bank for depositing
Beneficiary need not to worry about the loss / theft of physical instruments
Cost effective
Credit confirmation of the remittances sent by SMS or email
Remitter can initiate the remittances from home/ place of work through Internet Banking also
Secure
Essential Things for NEFT Fund Transfer:
Both originating and destination bank branches should be a part of the NEFT system
Name of the beneficiary bank and branch
Name of the beneficiary customer
Account number of the beneficiary customer
Account type of the beneficiary customer
IFSC (Indian Financial System Code) of the beneficiary bank
Indian Financial System Code (IFSC)
IFSC (Indian Financial System Code) is an alpha-numeric code that uniquely identifies bank branch
participating in the NEFT system.
IFSC is an 11-digit code with the first four Alpha characters representing the bank, and the last 6
characters
representing the branch. The 5th character is 0 (Zero)
In this IFSC code SBTR0000143, SBTR represents bank name “State Bank of Travancore”, Last 6
digits
000143 is the branch code
USES:
Main aim of using this IFSC code is to identify the originating/destination banks and branches and
also to
route the messages to the concerned banks/branches appropriately
Indian Currency
Name of the Indian Currency: The Indian Currency is called the Indian rupee and the coins
are called paisa. One rupee consists of 100 paisa.
Present denominations of bank notes in India: At Present notes in India are issued in the
denomination of Rs.5, 10, 20, 50, 100, 500 and 1000. These notes are called bank notes as they
are issued by the RBI. The printing of notes in the denominations of Rs.1 and Rs.2 has been
discontinued as these denominations have been coinised. However such notes issued earlier are
still in circulation. The printing of notes in the denomination of Rs.5 had also been discontinued
however it has been decided to reintroduce these notes in order to meet the gap between the
demand and supply of coins in this denomination.
Present available denomination of coins in India: Coins in India are available in
denominations of 50 paisa, one rupees , two rupees , five rupees and ten rupees up to 50 paisa
are called small coins and coins of rupee one and above are called rupee coins.
Can bank notes and coins be issued only in these denominations: Not necessarily. The RBI
can also issue notes in the denominations five thousand rupees and ten thousand rupees or any
other denomination that the central Government may specify. There cannot through be notes in
denominations higher than ten thousand rupees in terms of the current provisions of the RBI act
1934. Coins can be issued up to the denomination of Rs.1000
The role of the RBI in Currency management: The RBI manages Currency in India. The
Government on the advice of the RBI decides on the various denominations. The RBI also
coordinates with the Government in the designing of bank notes including the security features.
The RBI estimates the quantity of notes that are likely to be needed denomination wise and
places the indent with the various security presses through the Government of India. The notes
received from the security presses are issued and a reserve stock maintained. Notes received
from banks and Currency chests are examined. Notes fit for circulation are reissued and the
others are destroyed so as to maintain the quality of notes in circulation. The RBI derives its
role in Currency management on the basis of the RBI act 1934.
The role of Government of India: The responsibility for coinage vests with Government of
India on the basis of the coinage act 1906 as amended from time to time. The designing and
minting of coins in various denominations is also attended to by the Government of India.
Who decides on the volume and value of bank notes to be printed and on what basis: The
RBI decides upon the volume and value of bank notes to be printed. The quantum of bank notes
that needs to be printed broadly depends on the annual increase
In bank notes required for circulation purposes replacement of soiled notes and reserve
requirements.
Who decides on the quantity of coins to be minted: The Government of India decides upon
the quantity of coins to be minted.
How does the reserve bank reach the Currency to people: The RBI manages the Currency
operations through its offices located at Ahmedabad, Bengaluru, Bhopal, Bhubaneswar, Jaipur,
Kanpur, luck now, Mumbai, Nagpur, New Delhi, Patna, and Thiruvananthapuram? These
offices receive fresh notes from the note presses. Similarly the RBI offices located at Kolkata,
Hyderabad, Mumbai and New Delhi initially receive the coins from mints. These offices then
send them to the other offices of the reserve bank. The notes and rupee coins are stocked at the
Currency chests and small coins at the small coin depots. The bank branches receive the bank
notes and coins from the Currency chests and small coin depots for further distribution among
the public.
What is a Currency chest: To facilities the distribution of notes and rupee coins the RBI has
authorized select branches of banks to establish Currency chests . These are actually storehouses
where bank notes and rupee coins are stocked on behalf of the reserve bank. At Present there are
over 4422 Currency chests. The Currency chest branches are expected to distribute notes and
rupee coins to other bank branches in their area of operation.
What is a small coin : Some bank branches are also authorized to establish small coin depots to
stock small coins. There are 3784 small coin deposits spread throughout the country.
What happens when the notes and coins return from circulation: Notes and coins returned
from circulation are deposits at the offices if the reserve bank. The reserve bank then separates
the notes that are fit for reissue and those which are not fit for reissue. The notes which are fit
for reissue are sent back in circulation and those which are unfit for reissue are destroyed after
processing and shredding. The same is the case with coins. The coins with drawn are sent to the
mints for melting
From where can the General public obtain bank notes and coins: Banks notes and coins can
be obtained at any of the offices of the reserve bank and at all branches of banks maintaining
Currency chests and small coin deposits.
Why are Rs.1, Rs.2, and notes not being printed: volume wise the share of such small
denomination notes in the total notes in circulation was as high as 57 percent but constituted
only 7 percent in terms of value. The average life of these notes was found a year. The cost of
printing and servicing these notes was thus not commensurate with their life. Printing of these
notes was therefore discontinued. These denominations were Therefore coinised However it has
been decided that notes in the denomination of Rs.5 be re-introduced so as to meet the gap
between the demand and supply of coins in this denomination.
Soiled and mutilated notes: soiled notes are notes which have become dirty and limp due to
excessive use. Mutilated notes are notes which are torn disfigured burnt, washed, eaten by white
ants etc. A double numbered note cut into two pieces but on which both the numbers are in fact
is now being treated as soiled note.
Can such notes be exchanged for value: Yes soiled notes can be tendered at all bank branches
for and exchange obtained.
How much value would one get in exchange of soiled or mutilated notes: Full value is
payable against soiled notes. Payment of exchange value of mutilated notes is governed by the
reserve bank of India rules 1975. These rules have been framed under section 28 of the RBI
134.
What if a note is found to be non-payable: Non-payable notes are retained by the receiving
banks and sent to the reserve bank where they are destroyed.
Where soiled mutilated notes accepted are: All banks are authorized to accept soiled notes
across their counters and pay the exchange value. They are expected to offer these services even
to non-customers. All public sector bank branches and Currency chest branches of private sector
banks are authorized to adjudicated and pay value in respect of mutilated notes. The RBI has
also authorized all commercial bank branches to treat certain notes in two pieces as soiled notes
and pay exchange value.
Special features Introduced in the notes of Mahatma Gandhi series: The new mahatma
Gandhi series of notes contain several special features the notes issued earlier these are:
Latent Image : A vertical band behind on the right side of the mahatma Gandhi portrait which
contains which contains latent image showing the denominational value 20, 50, 100, 500, 1000
as the case may be.
BANKING OMBUDSMAN
Banking Ombudsman is a quasi judicial authority functioning
under Banking Ombudsman Scheme 2006.It provides
independent, expeditious and inexpensive forum to
aggrieved/Un-satisfied Bank customers. RBI introduced this
Scheme under powers granted U/s 35-A of Banking Regulation
Act.
Complaints are accepted only if they are made within one year
after the complaint has received the reply from bank.
Types of Complaints :
1. Non-payment or inordinate delay in the payment or collection of cheques, drafts ,bills etc.
2. Non-acceptance, without sufficient cause, of coins tendered and for charging of commission for
this
service.
3. Non-acceptance without sufficient cause of small denomination notes tendered for any purpose
and for
charging of commission for the service.
4. Failure to issue or delay in issue, of drafts pay orders or bankers cheque.
5. Non-adherence to prescribed working hours.
6. No payment or delay in payment of inward remittances.
7. Failure to honor guarantee or letter of credit commitments.
8. Failure to provide or delay in providing a banking facility promised in writing by a bank or its
direct
selling agents.
9. Delays, non-credit of proceeds to parties’accounts, non-payment of deposit or non-observance of
the
Reserve Bank directives, if any applicable to rate of interest on deposits in any savings, current or
other
account maintained with a bank.
10. Delays in receipts of export proceeds, handling of export bills, collection of bills etc. for
exporters
provided the said complaints pertain to the Banks operations in India.
11. Refusal to open deposit accounts without any valid reason for refusal.
12. Levying of charges without adequate prior notice to the customers.
13. Non-adherence by the bank or its subsidiaries to the instructions of Reserve Bank on ATM/debit
card
operations or credit card operations.
14. Non-disbursement or delay in disbursement of pension to the extent the grievance can be
attributed to the
action on the part of the Bank concerned but not with regard to its employees.
15. Refusal to accept or delay in accepting payment towards taxes, as required by Reserve
Bank/Government.
16. Customers should have complained to the concerned Bank first and wait for one month.
Complaint to
Ombudsman can be writing or in electronic mode.
Award :
Ombudsman can give maximum award upto Rs.10 Lacs.
Appeal :
Any party can file appeal within 30 days on receiving appeal award or the Ombudsman rejecting his
complaint to Appellate authority. If the appeal is the bank, it should be made with approval of CMD
or ED or
CEO only.
Financial Inclusion
Financial inclusion or inclusive Financing is the
delivery of financial service at affordable costs to sections of
disadvantaged and low income segments of society. Or we
can say that financial inclusion may be defined as the process
of ensuring access to Financial inclusion in timely and
adequate Credit when needed by vulnerable groups such as
weaker sections and low income groups at an affordable cost.
Unrestrained access to public goods and services is the sine qua of an open and efficient society. It
is
argued that as banking services are in the nature of public good it is essential that availability of
banking
services and payment services to the nature of public good it is essential that availability of banking
and
payment services to the entire population without discrimination should be the prime objective of
public
policy. the term Financial inclusion has gained importance since the early 2000s and is a Result of
findings
about Financial inclusion and it direct correlation to poverty. Financial inclusion is now a common
objective
for many central banks among the Developing nations
Financial inclusion offers people the following things……
1. Access to Financial markets
2. Access to Credit markets
3. Financial literacy
Objectives of Financial inclusion
1. Access at a reasonable cost for all house holds and enterprises to the range of Financial services
for which
they bankable including savings , short and long term credit , leasing and factoring , mortgages ,
insurance ,
pensions, payment , local money Transfers and international remittances.
2. Sound institutions guided by appropriate internal management systems, industry performance
standards
and performance monitoring by the market as well as sound prudential regulation wherever
required.
3. Financial and institutional sustainability as a means of providing access to Financial services over
time.
4. Multiple provides of Financial services wherever feasible so as to bring cost effective and a wide
variety of
alternatives to customers
Financially excluded sections largely comprise of the following activities….
1. Marginal farmers
2. Landless laborers
1. 3. Oral lessees
4. Self Employed and unorganized sector enterprises
5. Urban slum dwellers
6. Migrants
7. Ethnic minorities and society excluded groups
8. Senior citizens
9. Women
The north east eastern and central regions of India contain most of the Financially excluded
population….
Benefits of inclusive financial growth
The benefits of inclusive financial growth can be described
1. 1. Growth with equity:- In the path of becoming super power we the Indians need to achieve
the growth of
our country with equality. It is provided by inclusive finance.
2. Getting rid of poverty:- To remove poverty from the Indian context everybody will have to be
given
access to formal Financial services . Because if they borrow loans for business or Education or any
other
purpose then that will pave the way for their Development.
3. Financial transactions made easy:- Inclusive finance will provide banking related Financial
transactions
in an easy and speedy way.
4. Safe savings along with Financial services:- People will have safe savings along with other allied
services like insurance cover, entrepreneurial loans payment and settlement facility etc.
5. Increasing National income:- boosting business opportunities will definitely increase GDP that
will be
reflected in our National income growth.
6. Becoming global player:- Financial access will attract global market players to our country that
would
1. Result in increased Employment and business oppurtunities.
Banks are authorized to sell third party products. Which are these products?
When was the Currency note Rs.1000 issued
Where is security paper mills located
How many Currencies are used in the real effective exchange rate ?
Coins are minted at
Most important small scale industry of India
The Indian rupee is a
Cooperative banks in India do not finance rural areas under
In the term repo, the term of the loan is greater than
Consumer banks are usually found in
RBI generally reviews the monetary policy every
At present the RBI holds one percent of shareholding in
The RBI has adopted ______model in which mobile banking is promoted through business
correspondents of banks.
Development means Economic growth plus-
Revenue receipts of the India govt. Do not include
To how many more people does the Government to impart vocational skills by the end of the 12th
five year plan.
The price system ensures
Demand of a commodity mainly depends upon
Which of the following is not a party of bill of exchange The endorser
Cooperative banks in India do not finance rural areas under Small scale units
Interest payable on savings bank accounts is regulated by
Which of the following is not an example of primary securities Shares
Which of the following rates is decided by the market conditions and not by RBI SLR
The primary issuers of capital market securities include
Which of the following is a characteristic of a capital market instrument
A. Liquidity
B. Marketability
C. Long marturity
D. Liquidity premium
E. All of the above
Commercial paper is a short term security issued by_____to raise funds
As per prudential norms of the RBI lending of the scheduled Commercial banks on a fortnight
average basis should not not exceed ——-percent of their capital funds
An unsecured loan extended by one corporate to another is called
17. Interest is calculated on actual/ 365 days basis in respect of the following products except one
A. Call money
B. Notice money
C. Term money
D. GOI dated and securities ans
Which of the following schemes available in the Financial market is not meant for investment
Purposes D. Letter of Credit
Real time gross Settlement benefits bith banks and customers
Real time gross Settlement system means a payment system in which Both processing and final
Settlement of funds Transfer instructions can take place continuously
RBI in regard to RTGS has decided that
A. RTGS would be accessible to all retail customers
B. There would be no floor ceiling for routing transactions through RTGS
C. Settlement of transactions of the clearing corporation of india and the stock market would be
conducted
through RTGS
D. All of these ans
Who can invest in a commercial paper
A. Individuals B. Banking companies
C. Corporate bodies registered or incorporated bodies D. All of these ans
Commercial paper is essentially Unsecured money market instruments
Which of the following banks have entered capital market in the wake of narasimham
Recommendations
An inter bank funds Transfer system where funds are transfered as and when the transactions are
triggered is called A. Internet banking
The operative guidelines for banks in mobile banking transactions in india were issued in 2008
To use smart cards/debit cards/Credit cards for the purchase of an item or for payment of a service
at a merchant store the card has to be swiped in a terminal known as
A. Point of sale terminal B. Real time terminal C. Shopping terminal
B. For filling and resovling customer complaints the banking ombudsman
C. A. Charge a fee Rs.500
The RBI has prescribed that all SCBs should maintain their SLRs in State Development loans
According to the risk diversification principle of the bank lending, diversification should be in
terms of Geographic location
Which of the following aspects are outlined by the loan policy of a bank
A. Rating standards
B. 14. Branch banking system is one under which
C. A. A large bank carries on banking business through a large network of branches spread all
over the country
D. B. The bank huge Financial resources enable it to carry on its activities on a large scale
through out the
E. Country
The unit banking system is prevalent in India
Bank loan against property requires the asset to be free from encumbranhces. What does it mean
The property to be fully constructed