Banking Awareness Hand Book by Er. G C Nayak PDF

Presents
BANKING AWARENESS HAND BOOK

The Banking Lexicon
An Exclusive Self –Preparation Book for Bank Exams like SBI, IBPS & RBI Exams
REVISED & ENLARGED EDITION
Content Highlights Key Features:

Ch.-I Evolution of Banks in India (Page 01-05)
Ch.-II Commercial Banking in India (Page 06-13)  Precisely Covers Entire
Ch.-III Credit Management & Lending Policy (Page 14-17) Banking Awareness Syllabus
Ch.-IV Indian Financial System (Page 18-22)  Each Chapter Explained in a
Ch.-V Reserve Bank of India (Page 23-27) Lucid Manner
Ch.-VI Negotiable Instrument (Page 28-31)  Important points are
Ch.-VII SEBI & Stock Market (Page 32-35)
highlighted in Bold & Italics
Ch.-VIII Banking Sector Reforms (Page 36-38) +
 160 Unique One Liners
Ch.-IX Micro, Small & Medium Enterprises (Page 39)
Ch.-X Indian Economy (Page 40-42)  200 Frequently Asked
Ch.-XI Miscellaneous (Page 43-48) Banking Awareness MCQs
 Banking Abbreviations (Page 49)  Covers almost all Static GK
 Miscellaneous One Liner (Part-A) (Page 50-52)  15 to 20 marks Questions
 Miscellaneous One Liner (Part-B) (Page 52-53) Guaranteed in IBPS PO/Clerk
 Multiple Choice Questions (MCQs) (Page 54-66)
Appendix-1 (Page 67-85) (Country, Capital & Currency, Famous National Parks, Bank, HQ & Tagline, Organization &
HQ, Power Plants, International Governing Bodies, Trophies & Sports term, Folk dance & classical dance, Boundary line,
waterfalls& Hill stations, Popular Awards, Missiles & Ranges, Census-2011 Highlights, Summits, Sports Venue,
Parliament of different countries, News Papers & Magazines, Days & Dates, Important Stadiums, Cities & towns on the
river banks, Revolutions in the fields of agriculture, Popular Museums, Famous Temples, International Festivals)
Author’s Profile
Er. Gopal Chandra Nayak
(B.TECH in Electronics & Communication Engineering)
(Presently Works at Canara Bank)
(Former Teacher of SURE SUCCESS, Baleswar)
www.gcnayak.blogspot.com gopalnayak123@gmail.com
“Join your hand with YOUR MENTOR to Challenge the Race of Excellence”
“Banking Awareness Hand Book” By Er. Gopal Chandra Nayak
Chapter-I
EVOLUTION OF BANKS IN INDIA
 The story of banking starts from Bank of Hindustan established in 1770 and it was first bank at Calcutta under European
management. It was Liquidated/Collapsed in 1830-32 due to improper management/supervision.
 In 1786 General Bank of India was set up, but liquidated in 1791 due to improper management/supervision.
 Three Presidency banks were set up under charters from the British East India Company- Bank of Calcutta (in 1806 &
later renamed as Bank of Bengal), Bank of Bombay (in 1840) and the Bank of Madras (in 1843). These worked as quasi
central banks in India for many years.
 In 1921 these 3 banks merged with each other and Imperial Bank of India got birth.
 Imperial Bank of India was later renamed in 1955 as the State Bank of India. Thus, State bank of India is the oldest
Bank of India. SBI Nationalized in 1955.
 Next came Allahabad Bank which was established in 1865 and working even today. The oldest Public Sector Bank in
India having branches all over India and serving the customers for the last 145 years is Allahabad Bank.
 Allahabad bank is also known as one of India‟s Oldest Joint Stock Bank.
 The first bank purely managed by Indians was Punjab National Bank (Founder-Lala Lajpat Rai), established in Lahore
in 1895. The Punjab national Bank has not only survived till date but also is one of the largest banks in India.
 However, the first Indian commercial bank which was wholly owned and managed by Indians was Central Bank of
India which was established in 1911. So, Central Bank of India is called India‟s first truly swadeshi bank.
 Reserve Bank of India (RBI) established in 1935 under RBI Act-1934.
 Up to June 1948 RBI was acting as a central bank of Pakistan till state bank of Pakistan (central bank of Pakistan)
commenced operation.
 To streamline the functioning & activities of commercial bank the govt. of India came up with the Banking companies‟ act-
1949(which later renamed as Banking regulation act-1949).
 In 1960, SBI was given control of 7 subsidiaries (now called Associate banks)
 State bank of Bikaneer & Jaipur (Rajastan)

 State bank of Hyderabad (Andhra pradesh)
 State bank of Mysore (Karnataka)
 State bank of Travancore (Kerala)
 State bank of Patiala (Punjab)
 State bank of Indore (Madhya pradesh)…………..(Merged with Parent SBI)
 State bank of Saurastra (Odisha) …………………(Merged with Parent SBI)
Nationalization of Banks:
―Nationalization‖ is a process (not a status) of taking a private industry into public ownership by national govt. or state
govt. Nationalization takes place in two phases in India
 Phase-I (In 1969s)-Fourteen(14) largest commercial banks nationalized (then PM was Indira Gandhi)
 Phase II (In 1980s) -Six (6) more commercial banks nationalized. In the year 1993, the government merged New
Bank of India with Punjab National Bank. It was the only merger between nationalized banks and resulted in the
reduction of the number of nationalized banks from 20 to 19.
 The banks which are nationalized in 1969 & 1980 are called Nationalized Bank
Reasons for Nationalization:
 To increase public confidence in banking system.

 For expansion of banking facility in a uniform manner.
 To reduce monopolies of private bodies.
 To give preference to priority sector in advancing loans & to promote efficiency.
 For greater control by central bank.
 For greater stability in banking sector.
 To move forward socialization.
 For better service condition of staffs.
Do you know?
Phishing is the attempt to acquire sensitive information such as usernames, passwords, and credit card details (and
sometimes, indirectly, money), often for malicious reasons, by masquerading as a trustworthy entity in an electronic
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communication. So be aware about this while using internet banking & online payments.
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Copyright@www.gcnayak.blogspot.in
Note:
1. Public ownership, Govt. Ownership or State-owned organizations are properties that are vested in the state, rather
than an individual or private entity. (State-A nation/territory/Group of people ruling under one Government).
2. The banks in which the Government has more than 50% stake are called Public Sector Banks(PSBs).Currently number
of PSBs in India are 27.
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3. India‘s 1 Insurance company-Oriental Insurance(HQ-New Delhi)
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4. India‘s 1 Regional Rural Bank(RRB)-Prathama Bank(HQ-Moradabad, UP)
5. All RRBs are sponsored by Public Sector Banks(e.g. Prathama bank sponsored by Syndicate Bank).In RRB Central
Govt. has 50% Share, State Govt. has 15% Share & Sponsored bank has 35% Share.
6. Authorized Capital of RRB is Rs.5000Cr.
7. A Scheduled bank means a bank whose name is included in the 2nd schedule of RBI Act. A scheduled bank must
satisfy the conditions which include paid-up capital & reserve requirements not less than Rs.5 Lac, Satisfaction of RBI that
the bank will not jeopardize the interests of Depositors. Commercial banks, Rural & many state co-operative banks come
under scheduled banks. PACS, Central cooperatives are Non-Scheduled banks.
8. The main motive of Commercial banks is to earn profit; hence commercial banks are also called profit oriented banks.
9. In co-operative bank people co-operate with each other with a view to promote their mutual interest & these are approved
by laws, amendments & Acts.
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10. Anyonya Co-operative Bank Ltd.(ACBL), Gujarat is the 1 co-operative bank in India & Asia.
11. Former name of AXIS BANK was UTI (Unit Trust of India) Bank.
12. Oldest new private sector bank of India-Axis Bank (earlier UTI Bank)
13. Oldest foreign bank in India-Standard Chartered Bank.
14. CBS-CORE Banking Solutions
15. CORE-Centralized Online Real-time Exchange
16. Oldest Mutual Fund in India- UTI Mutual Fund
17. The oldest central bank in the world is Bank of England.
18. Balance sheet of a company consists of ASSET(Everything that a company owns & has a money value like debtors,
investments and property) & LIABILITY(A company's legal debt or obligation that arise during the course of business
operations i.e. everything that a company owes is liability. it include loans, accounts payable, mortgages).
19. Fixed asset-Land, Buildings, Plant & Machinery. Tangible assets- These are physical assets which can be touched.
Intangible assets-Goodwill, Copyrights & Patents etc.
20. Sikkim & Goa state has no RRB.
Some examples of Foreign Banks: ANZ(Australia and New Zealand Banking Group Limited) Bank (Australia) , BNP
Paribas (France), Deutsche Bank (Germany), HSBC(Hong Kong and Shanghai Banking Corporation) Bank (Hong Kong), Royal
Bank of Scotland (Scotland) , DBS Bank(Singapore), Barclays Bank(UK), Standard Chartered (UK), Citi Bank(US), JP Morgan
Chase(US) etc.
Some examples of Private Banks: ICICI(Industrial Credit and Investment Corporation of India) Bank, AXIS Bank,
HDFC(Housing Development Finance Corporation) Bank, IndusInd Bank, Kotak Mahindra Bank, Yes Bank, Federal Bank etc.
Money, Finance & Capital:
 Money is the stuff you carry around in your pockets. The stuff you use, handle and spend every day. It is personal and
practical. For example when we buy cup of tea or a newspaper we usually pay with money (cash) out of our pocket.
(OR) Money is the equivalent as a mean used for exchanging goods, services and carrying out payments.
 Finance is numbers, usually large numbers, numbers which we move around by signing pieces of paper. For example
when we buy a house, we sign contracts, mortgages and cheques. We don‘t usually pay in cash out of our pocket.
(OR) Financing is money provided for a specific purpose, often by an organization or the Government.
 Capital comprises the physical and non-physical assets (such as education and skills) used in making goods and
services. Capital refers to assets which are capable of generating income. Capital is one of the factors of production
and consists of the machines, land & labour. Oriental bank of commerce is the first public sector bank to issue capital
to public.
Depreciation:
 Depreciation of the currency happens when the country follows a flexible exchange rate (Floating interest rate). Flexible
interest rate means that the value of the currency is determined by the demand and supply and the central bank
doesn't intervene in it.
“Don't take rest after your first victory because if you fail in second, more lips are waiting to
say that your first victory was just luck.” ― A.P.J. Abdul Kalam
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Devaluation:
 It happens in countries with fixed exchange rate. In a fixed exchange rate, central bank decides what should be the
value of its currency compared to other countries. The Central bank intervenes by buying or selling government
securities to keep its exchange rates fixed.
Currency Devaluation: It‟s Impact on Economy:
 „Devaluation‟ means fall in the value of money in terms of other countries. It may attractive to foreigners but it
increases price on domestic goods leading to Inflation. It is in the hand of central Govt. or central Bank of a country
whether to devaluate or evaluate the currency.
 Export becomes cheaper.
 Import becomes more expensive
 Improvement of Balance Of Payment(BOP)
 Causes high economic Growth & high real GDP.
 Inflation is likely to occur, because (i) Imports are more expensive causing cost push inflation. (ii) Due to higher
economic growth demand pull inflation occurs.
Banking System in India:
RBI-Supreme
Monetary Authority
Scheduled Banks
Co-operative Banks
Commercial Banks
Public Sector Private Sector State Co- Central Co- PACS(Primary

RRB() Agricultural
Banks(27) Banks(31) Operative Operative
Banks Banks Cooperative
society)
Nationalized SBI Other OLD (16) NEW (15) Including

Bank(19) &Associates( PSB(2)-BMB
& IDBI IDFC & BANDHAN
6)
OGB(Odisha Gramya Bank) –Sponsored By - IOB
RRB (Odisha):
UGB(Utkal Grameen Bank) - Sponsored By - SBI
Foreign Banks Having Branches in India

Foreign Banks:
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Foreign Banks Having Representative office in India
Some Important Institutions:
1. BMB (Bharatiya Mahila Bank): It is India‘s first women centric bank fully owned by Govt. of India. It focuses on
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banking needs of women & promotes economic growth. It is included in 2 schedule of RBI Act-1934 in May-2014.
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2. IDBI (Industrial Development Bank of India) Bank: It passed under IDBI Act-1964 and included in 2 schedule of
RBI Act-1934 in Oct 2004. It focuses mainly on development of Industrial sector.
3. SIDBI (Small Industries Development Bank of India): It was initially owned by IDBI, but now owned by Govt. of
India. It focuses on MSME (Micro Small Medium Enterprises) sector. Its Head Quarter is at Lukhnow.
4. EXIM (Export Import Bank of India) Bank: It established in 1982 & focuses on financing export & import trade. It is
fully owned by Govt. of India.
5. NABARD (National Bank for Agricultural & Rural Development): Estd. In 1982. It regulates RRBs & Co-operative
banks. The Govt. of India holds 99% of stake & RBI holds 1% of stake of NABARD. It focuses mainly on agricultural
activities, rural financing activities, small scale industries, cottage & village industries, handcrafts. It Provides loan to
state Govt., NGOs, SHGs & panchayati raj institutions. It has two subsidiaries:-
 NABFINS: - NABARD financial.
 NABCON: - NABARD consultancy
 BIRD (Bankers Institute of Rural Development), Lukhnow estd. In 1983 by NABARD
6. SEBI (Security Exchange Board of India) was established to protect the interests of investors in securities & to
promote the development & regulation of securities market. Its head quarter is in Mumbai. Its functions are:-
 Performs 3 basic functions (1) Legislative (Drafts Regulations), (2) Judicial (Passes rulings & orders) and
(3) Executive (Conducts investigation & enforcement action).
 Controls stock exchanges & grant license to financial institutions.
 Levy penalty on the intermediaries for wrong doings & rule disobeying.
7. RBI‟s 3 fully owned subsidiaries
 NHB (National Housing Bank): Set up on July 9, 1988(HQ-New Delhi) under the National Housing Bank Act,
1987. NHB is an apex financial institution for housing. NHB has been established with an objective to operate
as a principal agency to promote housing finance institutions both at local and regional levels and to provide
financial and other support incidental to such institutions and for matters connected therewith. It‘s index is
RESIDEX.
 BRBNMPL (Bharatiya Reserve Bank Note Mudran Pvt. Ltd.): It prints bank notes (Indian rupees) for
Reserve Bank of India (RBI). It was established in 1995 to address the demand for bank notes. It has two
presses one in Mysore and Salboni. Besides that, Currency Note Press, Nashik and Bank Note Press, Dewas
also prints bank note for RBI.
 DICGC (Deposit Insurance & Credit Guarantee Corporation): DICGC insures all bank deposits, such as
saving, fixed current, recurring deposits for up to the limit of Rs. 100,000 i.e. One Lakh Rupees of each
deposit in a bank. All commercial banks including branches of foreign banks functioning in India, local area
banks and regional rural banks are insured by the DICGC. Primary Agricultural Cooperative Societies
(PACS) are not insured by the DICGC.
8. ECGC (Export Credit Guarantee Corporation of India Ltd. (ECGC)): It‘s a Government of India Enterprise which
provides insurance cover in respect of risks in Export trade. The risk may include loss of money on account of
foreign buyer becoming bankrupt or sudden import or exchange restrictions resulting in stopping of payments etc. It
functions under the administrative control of Ministry of Commerce & Industry and is managed by a Board of
Directors comprising representatives of the Government, Reserve Bank of India, banking, and insurance and exporting
community. Over the years, it has evolved various export credit risk insurance products to suit the requirements of
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Indian exporters and commercial banks. ECGC is the 5 largest credit insurer of the world in terms of coverage of
national exports. The present paid up capital of the Company is Rs. 1200 Crores and the authorized capital is Rs.
5000 Crores..
9. NPCI (National Payment Corporation of India): NPCI Head quartered in Mumbai functions as a hub in all electronic
retail payment and settlements in India. Its products are-
 NFS (National Financial Switch): It is the largest network of shared ATMs in India. Its goal is to connect the
ATMs in the country & facilitate convenience banking to average Indians. It developed by IDRBT & Run by
NPCI.
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 Rupay Card-India‘s 1 domestic card payment gateway. (Before it we are using EMV Cards (EuroPay,
MasterCard, Visa Card) gateway).
 Aadhar Based Payment Systems (ABPS): Credit disbursements based on UID (Unique Identification) number.
 CTS (Cheque Truncation System): Truncation is the process of stopping the flow of the physical cheque
issued by a drawer at some point with the presenting bank en-route to the drawee bank branch. In its place an
electronic image of the cheque is transmitted to the drawee branch by the clearing house, along with
relevant information like data on the MICR band, date of presentation, presenting bank, etc. Cheque Truncation
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, and removes
reconciliation-related and logistics-related problems, thus benefitting the system as a whole. CTS-2010 is
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compliant to IT Act-2000.
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10. Institute for Development & Research in Banking Technology (IDRBT): It is a banking research institute
established in 1996 by Reserve Bank of India (RBI). It is located in Hyderabad, India. RBI established IDRBT with the
aim of providing the operational service support in information technology to banks and financial institutions
11. Indian Banks' Association (IBA), formed on 26 September 1946 as a representative body of management of banking
in India operating in India - an association of Indian banks and financial institutions based in Mumbai. IBA was formed
for development, coordination and strengthening of Indian banking, and assist the member banks in various ways
including implementation of new systems and adoption of standards among the members
12. CCIL (Clearing Corporation of India Limited): It is the central body to provide clearing & settlements for transactions
in Govt. Securities, foreign exchange & money markets in the country. Its Headquarter is at Mumbai.
13. IRDA (Insurance Regulatory & Development Authority of India): Regulate all insurance companies including LIC. It
is estd in 1999 & HQ in Hyderabad.
14. NSDL (National Security Depository Limited): It is an Indian central securities depository based in Mumbai. It was
established on 8 November 1996 as the first electronic securities depository in India with national coverage based
on a suggestion by a national institution responsible for the economic development of India. It has established a
national infrastructure using international standards that handles most of the securities held and settled in
dematerialized form in the Indian capital market. It provides DP (Depository Participants) service center under
which we can open DEMAT Account. The NSDL also issues PAN Card.(PAN Number is a 10 character alpha-
numeric number e.g. AAAPL1234C). Its Headquarter is at Mumbai.
15. PFRDA (Pension Fund Regulatory & Development Authority in India):It is estd in 2003 & headquarter in New
Delhi. It is authorized by Ministry of Finance to regulate pension sector in India.
16. NPS (National Pension System): It is a contributory pension system introduced by Govt. of India. It is mandatory for
all central Govt. employees w.e.f. jan, 2004. It extends to all citizens of India including workers of the unorganized
sector on a voluntary basis w.e.f. 2009.
17. EPFO (Employees Provident Fund Organization): It is a statutory body of Govt. of India under the Ministry of Labor
& Employment. It administers a compulsory contributory provident fund scheme, pension scheme & an insurance
scheme (the scheme covers Indian workers as well as International workers with which bilateral agreements have been
signed). On Oct 2014 PM Modi launched Universal Account Number (UAN) for employees covered by EPFO to
enable PF number portability. UAN is a 12-digit Numeric code. Headquarter of EPFO is New Delhi.
GPF(General Provident Fund) PPF(Public Provident Fund) EPF(Employees Provident Fund)

 Only for Government  Any Individual (need not be  It is mandatory for all organized
Employees a salaried person) can sector employees with monthly
 It is a compulsory contributory open this in bank or post salary upto 6,500/- & voluntary
scheme. offices. for those earning above the
 Interest Rate-8.7%  Min. contribution 500/-& threshold.
Max. contribution 1.5 Lac/-.  Interest rate-8.75%
 It is a voluntary savings
scheme
 Interest rate-8.7%
18. World Bank Vs IMF: The World Bank has 4 subsidiaries (i) IBRD (International Bank for Reconstruction &
Development), (ii) IDA(International Development Association) (iii) IFC (International Finance Corporation), (iv) MIGA
(Multilateral Investment Guarantee Agency). Both IMF & WB are called Bretton woods institution. IDA is called ―Soft
loan window‖ for developing economies.
WB(World Bank) IMF(International Monetary Fund)

 Provides financial & technical assistance to  Foster global monetary co-operation, improve
underdeveloped nations for development schemes international trade, promote employment, and take
like building roads, schools, hospitals etc. care of macroeconomic policies like exchange rate &
 Its aim is to eliminate poverty from the world. balance of payments (BOPs).
 The currency of IMF is SDR (Special Drawing Rights).
19. NDB (New Development Bank) or BRICS Bank: It is an alternative to existing US dominated WB & IMF. It facilitates
assistance to emerging economies like Brazil, Russia, India, China & South Africa etc.
20. Some other developmental organizations are MUDRA Bank(for SSIs in India), ADB(Asian Development
Bank),AIIB(Asian Infrastructural Investment Bank), NDB (New Development Bank)
21. BCSBI (Banking Codes and Standards Board of India) is an independent & and autonomous banking industry
watchdog that protects consumers of banking services in India. The board oversees compliance with the "Code of
Bank's Commitment to Customers". It is not a compensation mechanism and looks into an individual complaint only to
the extent it points to any systemic compliance failure. It Is set up under the recommendation of Tara pore committee.
“Difficulties in your life do not come to destroy you, but to help you realize your hidden potential
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and power, let difficulties know that you too are difficult” – A. P. J. Abdul Kalam
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Chapter-II
COMMERCIAL BANKING IN INDIA
Bank: A Bank is an establishment authorized/Licensed by a government to accept deposits, pay interest, clear checks, make
loans, act as an intermediary in financial transactions, and provide other financial services to its customers. Some functions of
banks are-
 Accepting Deposits (Deposits)

 Lending Money (Disburse Loans)
 Transferring Money (Remittances)
 Credit Creation (Money creates Money & Money has Face value i.e. Rs.10=/= Rs.10 tomorrow)
 Acting as a Trustee
 Keep valuables in safe custody
 Stimulate Economic Growth
Some other functions of bank are:
 Discounting bills of exchange: Under this banks give advance to their clients on the basis of their bills of exchange
before the maturity of such bills (A deduction is made out on the face value of the bill).
 Invest in Govt. Securities (G-Secs): under this banks advance loan to the Govt. by purchasing G-Secs (e.g. Treasury
bill). G-Secs are the safest mode of investment& also called Gilt-Edge securities.
 Merchant Banking Service: Under this bank helps customers to avail loans from NBFCs.
Authorized Dealer: A person or company (such as a bank) that is allowed by the country's central bank to buy and sell foreign
currency is called so. Simply, an Authorized dealer deals in Foreign Exchange matters.
Customer: A person does not become a bank customer unless and until he opens an account with a bank.
Banker-customer relations:
1. Debtor & Creditor: When a customer opens an account (savings/current/fixed deposit a/c) with a bank and if the
account has a credit balance, then the banker/bank is debtor and customer is creditor.
2. Pledger & Pledgee: when customer promises (pledges) certain assets or securities with the bank in order to get loan,
the banker is pledgee & customer is pledger.
3. Licensor & Licensee or Leasor & leasee: when bank gives locker facility to its customer, the banker is Leasor &
customer is Leasee.
4. Bailor & Bailee: when a customer gives a sealed box to the bank for safe keeping, the banker is bailee & customer is
bailor.
5. Hypothecator & Hypothecatee: when the customer hypothecates (pledges) certain movable or non-movable property
or assets with the banker in order to get a loan. In this case, the customer becomes the Hypothecator and the banker
becomes the Hypothecatee.
6. Trustee & Beneficiary: If the customer deposits securities or valuables with the banker for safe custody, the banker
becomes a trustee of his customer. The customer is the beneficiary, so the ownership remains with the customer.
7. Agent & Principal: The banker as an agent performs many other functions such as payment of insurance premium,
electricity and gas bills, handling tax problems, etc. on behalf of the customer.
8. Advisor & Client: When a customer invests in securities, the banker acts as an advisor.
The banker-customer relationship terminates when any of these occurs:
 Termination by the Customer

 Termination by the bank
 Termination by Law:
 Death of the customer;
 Mental incapacity of the customer or Lunatic Person
 Bankruptcy or insolvency(i.e. Inability to pay the debts) of bank or customer Respectively.
Types of Banks:
 Savings bank(focuses on savings deposit from customer)

 Commercial bank (Profit oriented bank)
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 Development bank (1 development bank IFCI (Industrial Financial Corp. Of India), IDBI, ICICI)
 Land development bank(Provide long term loan to agricultural sector)
 Central bank(e.g. RBI for India)
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 Co-operative bank(Registered under co-operative societies act-1912)

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 Foreign bank (JP Morgan, Std. Chartered, HSBC, ANZ Bank, City Bank, Barclays).
 Private Bank (Axis, ICICI, IndusInd, Kotak Mahindra, HDFC, Yes Bank, Federal Bank)
 Indigenous bank (e.g. Money Lenders& sahukars).
 Public sector banks (having Govt. stake > 50%)
 Nationalized Banks (Those banks nationalized in 1969 & 1980)
Types of Account:
Savings A/C:
 This is the simplest form of deposit account. It is the mother of all account.
 These accounts are subject to restrictions on number of withdrawals during any specified period & minimum
balance must have to be maintained for cost of maintaining and servicing.
 The interest rate is very low (Approx. 4 %) and calculated in Daily basis & paid to account in quarterly basis.
 Savings deposits are called demand liabilities of the bank as we can withdraw it anytime by our demand.
Current A/C:
 A depositor can deposit his fund any no of times he likes & can also withdraw any no of times he wishes in current a/c
as no restriction here.
 No interest is paid on this type of account.
 This type of a/c generally provided to high net worth individuals (especially to businessman) or firms.
 The cost of maintenance of this account is high, so bank asks the customers to maintain a minimum balance.
 Bank provides overdraft facility on this type a/c.
 Current a/c deposits are called demand liabilities of the bank as we can withdraw it anytime by our demand.
Other A/C Include

in the name of TYPES OF ACCOUNTS*
Minors, Illiterate
person, HUF
&Senior Citizens
FOR INDIANS FOR NRI/PIO/OCIs OTHERS
Domestic Foreign Domestic Foreign DEMAT A/C

Rupee A/C Currency A/C Rupee A/C Currency A/C
NOSTRO A/C
VOSTRO A/C
SAVINGS A/C
LORO A/C
CURRENT A/C
DORMAT A/C
CASA RFC
NRE UNCLAIMED A/C
BSBDA RFC(D) FCNR
NRO FLEXI/SWEEP
FIXED
EEFC A/C
RECURRING
PIGMY DEPOSIT
RE- A/C
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INVESTMENT
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CASA (Current A/C-Savings A/C):
Current account pays no interest and savings account pays very low interest, as an aggregate the CASA deposits are
low interest deposits for the Banks compared to other types of the deposits. So banks tend to increase the CASA deposits and
for this they offer various services such as salary accounts to companies, and encouraging merchants to open current accounts,
and use their cash-management facilities. CASA deposits are demand liabilities for bank.
BSBDA (Basic Savings Bank Deposit Account):
 Under the guidelines issued on August 10, 2012 by RBI: Any individual, including poor or those from weaker section
of the society, can open zero balance account in any bank.
 BSBDA guidelines are applicable to "all scheduled commercial banks in India, including foreign banks having
branches in India".
 All the accounts opened earlier as 'no-frills' account (i.e. account with nil or very low minimum balance) should be
renamed as BSBDA. Banks are required to convert the existing 'no-frills' accounts‟ into 'Basic Savings Bank Deposit
Accounts'.
 The 'Basic Savings Bank Deposit Account' should be considered as a normal banking service available to all
customers, through branches.
 The aim of introducing 'Basic Savings Bank Deposit Account' is very much part of the efforts of RBI for furthering
Financial Inclusion objectives.
 If BSBDA is opened on the basis of simplified KYC, the accounts would be additionally treated as ―BSBDA-small
accounts or simply Small Accounts.
Financial Inclusion: It is the delivery of financial services at affordable costs to sections of disadvantaged and low-income
segments of society. Ex-PMJDY, BSBDA
Main Points of BSBDA-Small Accounts:
 In BSBDA, banks are required to provide free of charge minimum 4 withdrawals, through ATMs.
 Total credits in such accounts should not exceed 1 Lakh rupees in a year.
 Maximum balance in the account should not exceed 50,000 Rs at any time.
 The total of debits by way of cash withdrawals and transfers should not exceed 10,000 rupees in a month.
 Foreign remittances cannot be credited to Small Accounts without completing normal KYC formalities.
 Small accounts are valid for a period of 12 months initially which may be extended by another 12 months if the person
provides proof of having applied for an Officially Valid Document.
Note:
1. Aadhar Card is mandatory for e-KYC.

2. Minimum age to open a bank account is 10 years.
Term Deposits:
 Fixed deposits: A fixed rate of interest (higher than savings account approx. 8-9%) is paid at fixed, regular intervals.
The interest compounded Quarterly. For FD Minimum period 7 days and Maximum period 10 years in India &
Minimum amount Rs.1000 & no maximum limit. The money can be withdrawn after the maturity period hence called
Term deposit. We can also withdraw FD before maturity but we have to give 1% penalty to bank.
 Recurring deposits: Fixed amount is deposited at regular intervals for a fixed term and the repayment of principal and
interest is compounded quarterly. These deposits are usually targeted at persons who are salaried or receive other
regular income. A Recurring Deposit can usually be opened for any period from 6 months to 10 Years.
 Re-investment deposits: Interest is compounded Quarterly and paid on maturity, along with the principal amount of
the deposit. In the Flexi Deposits amount in savings deposit accounts beyond a fixed limit is automatically converted
into term-deposits.
Note:
If one deposits same amount of money in Recurring and Fixed deposit then he/she will get more interest benefits in
Fixed deposit account. Maximum limit for Term Deposit in India is 10 years. Interest earned on bank term deposits is subject to
Tax Deducted at Source (TDS) if interest amount exceeds the stipulated amount for one financial year.
Resident Foreign currency account (RFC):
A resident in India who was earlier an NRI (at least one year stay abroad) and became resident again on or after
18/04/1992. RFC Account may be savings/current/FD Type. Repatriation is permitted. Source of fund may be from foreign
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exchange received as pension/gift/inheritance, realization of assets held abroad,

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Resident Foreign Currency (Domestic) Account (RFC(D)):
Resident individual can open it. It is only in the form of current account. No interest payable.
Exchange Earners Foreign Currency Account (EEFC):
It is an account maintained in foreign currency with an Authorized Dealer i.e. a bank dealing in foreign exchange. It is a
facility provided to the foreign exchange earners, including exporters, to credit 100 per cent of their foreign exchange earnings to
the account, so that the account holders do not have to convert foreign exchange into Rupees and vice versa, thereby
minimizing the transaction costs. An EEFC account can be held only in the form of a current account. No interest is payable
on EEFC accounts.
NRO (Non Resident Ordinary) A/C:
 These accounts are maintained in Indian rupees (INR).

 The source of fund in these accounts can be from India or abroad(foreign incomes are converted to INR at the
exchange rate)
 These accounts are appropriate for NRIs who have had earnings in India earlier e.g. House rent, interest from
investment, pensions and sales of immovable properties.
 Credits accrued/accumulated in these accounts are partially repatriable (i.e. Subject to the ceiling/cap of 1 mn USD
Per financial year)
 Interest income earned on the money in NRO accounts is Liable for Taxes in India as the source of fund from India.
 NRO Accounts may be savings/current/recurring/FD Type & we can have other NRIs or residents Indians as joint
account on NRO Account.
NRE (Non Resident External) A/C:
 These accounts are maintained in Indian rupees (INR).

 The source of fund in these accounts must be from earnings abroad only (not from any source in India) i.e. the
foreign currency is converted to Indian rupees at the prevailing foreign exchange rates.
 Credits accrued/accumulated in these accounts are fully repatriable & can be converted to any foreign currency using
forex rates.
 Interest income earned on the money in NRE account is non-taxable in India as the source of fund is from abroad.
 NRE Accounts may be savings/current/recurring/FD Type & we can only have other NRIs as joint account on NRE
Account.
FCNR (Foreign Currency Non Resident) A/C:
 The name itself suggests that these accounts are maintained in foreign currency (Currently in six currencies USD,
GBP, EUR, JPY, CAD, AUD).
 FCNR Account is a term deposit account& the term varies from 1 to 5 years.
 The sources of funds are from abroad & can also from other NRE or FCNR Accounts.
 The principal & interest accrued/accumulated are fully repatriable.
 Credits accrued/accumulated are non-taxable in India.
DEMAT(Dematerialized) A/C:
 To buy or sell stocks we have to open a Demat account.

 Here actual money is replaced by Shares & traded electronically & no physical possession of share.
 To open a Demat account, one need to approach the Depository Participants (DPs) provided by NSDL (National
Security Depository Limited).
 Physically only 500 shares can be traded as per SEBI, from April 2006.
 It is mandatory for Demat account holder to possess a permanent account number (PAN).
 In DEMAT account shares, securities and insurance policies are kept in electronic form.
 An ETF (Exchange Traded Fund) is an investment fund traded on the stock exchanges, much like stocks. These are
more attractive because of their low cost, tax efficiency & stock like features.
NOSTRO Account:
It is maintained by an Indian bank in the foreign countries (in foreign currency) for a facility of easy clearing of their
transactions.
VOSTRO Account:
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It is maintained by a foreign bank in India (in Indian currency) for a facility of easy clearing of their transactions.
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LORO Account:
If a bank in India (say SBI) has an account with Citibank, New york and another Indian bank (Say BOB) wants to refer
to that account while corresponding with Citibank, New york. It would refer the said account as LORO Account
Dormant (Inoperative) & Unclaimed A/C:
Those savings or current account which has not been operated up to for 10 years or more is called unclaimed
account. A savings or current account should be treated as dormant or inoperative (Deposit, withdraw & transfer not possible), if
there are no transactions in the account for over a period of 2 years. If an account remains in operative for 6 months it
becomes Partially Freezed. (Only deposit possible. Withdraw and Transfer is not possible).
Flexi/Sweep A/C:
To promote savings & enable depositors to earn interest on idle funds a facility is provided whereby savings accounts
are linked to fixed deposit accounts. Amount in excess of a pre-determined limit in the savings account is transferred to a fixed
deposit account whenever the balance in the savings account exceeds the limit. In this way amount of fixed deposit increases &
interest earning is more than savings rate. Minimum period 6 months to maximum 5 years.
Pigmy Deposit A/C:
These accounts enable very small depositors to save whatever little they can set aside every day or at short intervals.
Escrow A/C:
An Escrow account is an arrangement for safeguarding the exporter against its importers from the payment risk for
goods and services sold by the former to the latter. It involves 3 parties‘ exporter, importer & Escrow agent. Here the control of
rd
cash flow removed from the importer to the Escrow agent. The Escrow agent is a 3 party & he/she acts as a trustee.
Types of ATM (Automated Teller Machine):
 On-site ATMs: ATMs within the bank premises are called so. These are more advanced, multi-function machines that
complement a bank branch‘s capabilities & are thus more expensive.
 Off-site ATMs: Off-site ATMs are deployed outside the bank premises where there is a simple need for cash, so they
are generally cheaper & single functioning devices.
 White Label ATM: It refers to ATMs owned by corporate or private operators (By NBFCs) seeking to earn a
commission by banks for transactions performed by their customers. For ex: - INDICASH by TATA group (TCPL) is the
first white label ATM in India, Muthoot Finance, Srei Infra., Vakrangee Software, Prizm Payments, AGS etc.
 Brown Label ATM: It refers to the ATMs where investment, installation and maintenance are by a private operator but
the license and branding is by a commercial bank.
 Green Label ATM: Provided for Agricultural Transaction.
 Orange Label ATM: Provided for Share Transaction.
 Yellow Label ATM: Provided for E-Commerce.
 Pink Label ATM: Provided for Women Banking.
 Biometric ATM: Biometric ATMs are self-service cash machines that use a biometric measure (finger print/retina scan)
to identify customers and allow them to withdraw cash.
 Talking ATM: A Talking ATM is a type of automated teller machine that provides audible instructions so that persons
who cannot read an ATM screen can independently use the machine
Note:
 The vast majority of ATMs worldwide use a Microsoft Windows Operating system, primarily windows XP Professional
or windows XP Embedded. Linux OS is also used. Generally the ATMs we use are Brown label ATMs.
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 Some popular Core Banking Software Packages are (1) Finacle (Developed by Infosys) used by ICICI Bank. (2)
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BaNCS (Developed by TCS) used by SBI. (3) Flexcube (Developed by Oracle Corporation) used by Canara Bank
Types of Cards:
There are 3 different types of card such as

 Debit cards: Issued by banks and are linked to a bank account
 Credit cards: Credit cards are issued by banks / other entities approved by RBI & may or may not be linked
to an account.
 Prepaid cards: Maximum value that can be stored is Rs.50 000/-.
Note:
1) These cards are called Plastic Currency. RBI launched prepaid card for mass transit system like operators like
Mumbai Metro, Delhi Metro, Indian Railways called PPI-MTS having minimum validity 6 months & maximum value
stored Rs.2000/-.The Prepaid instruments can be issued as smart cards, magnetic stripe cards, internet accounts,
online wallets, mobile accounts, mobile wallets, paper vouchers and any such instruments which can be used to
access the prepaid amount.
2) The interest earned on Savings bank account is exempted from taxation up to Rs. 10,000/- Per Year.
3) VSAT (Very Small Aperture Terminals) is a technology used to operate ATMs in remote locations by using antennas
like Yagi (more properly called Yagi-Uda) antenna.
Electronic Fund Transfer (EFT):
ELECTRONIC FUND TRANSFER (EFT)
Within India Abroad
NEFT RTGS IMPS SWIFT

 NEFT (National Electronic Fund Transfer):
 NEFT enables funds transfer from one bank to another but works a bit differently than RTGS. NEFT is slower than
RTGS. The transfer is not direct and RBI acts as the service provider to transfer the money from one account
to another. We can use this facility if we want to transfer funds online in a day or two. NEFT can make life easier
for those who need to send money to their parents or children living in another city. It cuts the trouble of issuing a
cheque or draft and posting it. It can also be done through internet banking
 Transfer Limit: You can transfer any amount through NEFT, even a rupee. There is no Minimum & Maximum
Limit in NEFT, But Maximum amount per transaction limited to Rs.50,000/ for cash based remittances(i.e.
for walk-in customers who don‟t have bank accounts) & Remittance to Nepal.
 Operating Hours: NEFT operates in hourly batches. There are 13 settlements from 8 am to 8 pm (Mon-Friday) & 6
settlements from 8 am to 1 pm (Saturday).
 NEFT Charges: No charges levied from beneficiaries. For Txn upto Rs.10,000--Rs 2.50(+ service tax), for 10,000
to 1 lkh --Rs 5 (+ service tax), for 1lkh to 2 lkh--Rs 15 (+ service tax), for >2 lkh--Rs. 25 (service tax).
.
 RTGS (Real Time Gross Settlement):
 RTGS system is funds transfer systems where transfer of money or securities takes place from one bank to
another on a "Real time" and on "Gross" basis. Settlement in "real time" means payment transaction is not
subjected to any waiting period. The transactions are settled as soon as they are processed. "Gross settlement"
means the transaction is settled on one to one basis without bunching or netting with any other transaction. Once
processed, payments are final and irrevocable.
 Transfer Limit: Minimum Limit of RTGS is 2 lakh and no upper limit. In an RTGS system, transactions are
settled across accounts held at a Central Bank on a continuous gross basis. Settlement is immediate, final
and irrevocable (which cannot be changed or reversed).
 Operating hour: 8.00-16.30 (on week days) & 8.00-14.00 (on Saturday)

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RTGS Charges: (2 to 5 Lakh)-Rs 30/Txn & >5 Lakh-Rs 55/Txn.
Note: NEFT uses concept of “Batch processing” whereas RTGS uses concept of “Real time processing”
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 IMPS(Interbank Mobile Payment Service):
 It is also known as immediate payment service. It is a way in which we can transfer fund from any bank account to
any other bank account holder in India anytime (Using Mobile Phones with internet access). It is real time. The
depositor account is credited in less than 1 minute from the submission of transaction
 Transfer Limit: Minimum amount – Rs 1 & Maximum amount – Banks are allowed to set their own limit for IMPS.
 Operating Hour: IMPS can be done 24X7 even on bank holidays, RBI holiday and Sunday.
 IMPS Charges: It is similar to NEFT Charges. No charges levied from beneficiaries. For Txn upto Rs.10,000--Rs
2.50(+ service tax), for 10,000 to 1 lkh --Rs 5 (+ service tax), for 1lkh to 2 lkh--Rs 15 (+ service tax), for >2 lkh--Rs.
25 (service tax).
 SWIFT(Society for Worldwide Interbank Financial Telecommunication) Transfer:

 To send money abroad we need to do SWIFT Transfer.
 SWIFT transports financial messages in a highly secure way but does not hold accounts for its members and
does not perform any form of clearing or settlement.
 SWIFT does not facilitate funds transfer: rather, it sends payment orders, which must be settled by
correspondent accounts that the institutions have with each other. Each financial institution, to exchange banking
transactions, must have a banking relationship by either being a bank or affiliating itself with one (or more) so as
to enjoy those particular business features.
 SWIFT is a cooperative society under Belgian law owned by its member financial institutions with offices around
the world. SWIFT headquarter is at La Hulpe, Belgium.
 SWIFT hosts an annual conference every year, called SIBOS, specifically aimed at the financial services industry
Types of Codes:
 IFSC (Indian Financial System Code):
 Indian Financial System Code is an Alpha-numeric code that uniquely identifies a bank-branch participating in the
NEFT & RTGS system.
 This is an 11 digit code. e.g. SBIN-0-006413
 First 4 alpha characters representing the Bank. (SBIN)
 The 5th character is 0 (zero). (0)
 Last 6 characters representing the Bank branch. (006413)
 IFSC is used by the NEFT & RTGS system to identify the originating / destination banks / branches and also to route
the messages appropriately to the concerned banks / branches.
 MICR (Magnetic Ink Character Recognition) Code:
 Magnetic Ink Character Recognition is a Numeric code which uniquely identifies a bank branch participating in the
ECS Credit scheme.
 This is a 9 digit code. e.g. 400-229-128
 First 3 digits represent the city (400)
 Next 3 digits represent the bank (229)
 Last 3 digits represent the branch (128)
 The MICR Code allotted to a bank branch is printed on the MICR band of cheque leaves issued by bank branches.
 SWIFT/BIC Code:
th
 SWIFT stands for Society For Worldwide Interbank Financial Telecommunication. India was 74 nation to join
SWIFT Network. BIC stands for Business Identifier Code.
 SWIFT code is a standard format of bank identifier code. This code is used particularly in international transfer of
money between banks. SWIFT HQ in La Hulpe, near Brussels in Belgium.
 SWIFT/BIC code consists of 8 or 11 character. E.g. AXIS-IN-BB-002
st
 1 4 digit-Bank code. (AXIS-Axis Bank)
 Next 2 digit-Country code. (IN-India)
 Next 2 digit-Location code. (BB-Maker tower cuffe parade, Mumbai-400005)
 Next 3 digit-Branch code (optional). (002-Branch code)
 UTR(Unique Transaction Reference) Code:
 It is a 16-digit alphanumeric code used in RTGS Transaction.
 E.g. SBIN-1-89-053-133251
 SBIN- Represent Bank
 1- Message number
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 89- year 1989

 053- Date(053-Feb 22, 365-Dec 31)
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 133251-Day‘s serial no or unique reference number
 MMID (Mobile Money Identifier) Code:
Mobile Money Identifier (MMID) is a 7 digit number issued by a bank against an account linked to a mobile number.
Remitter (customer who wants to send money) and Beneficiary (customer who wants to receive money) should have
this MMID for doing interbank funds transfer (IMPS).
Note: NEFT & RTGS both uses IFSC Code whereas IMPS uses MMID Code for cash transfer.
Cheque Truncation:
Truncation is the process of stopping the flow of the physical cheque issued by a drawer at some point with the
presenting bank en-route to the drawee bank branch. In its place an electronic image of the cheque is transmitted.
Forex facilities available for Residents/Individuals in India:
Foreign exchange transactions in India are provided by the Foreign Exchange Management Act (FEMA), 1999.
 For private visits abroad, other than to Nepal and Bhutan, viz., for tourism purposes, etc., any resident can obtain
foreign exchange up to an aggregate amount of USD 10,000, from an Authorized Dealer (Generally Banks), in any
one financial year, on self-declaration basis, irrespective of the number of visits undertaken during the year.
 No foreign exchange is available for visit to Nepal and/or Bhutan for any purpose. A resident Indian is allowed to
take INR of denomination of Rs.100 or lesser denomination to Nepal and Bhutan without limit.
 On return from a foreign trip, travellers are required to surrender unspent foreign exchange held in the form of currency
notes and travellers cheques within 180 days of return. However, they are free to retain foreign exchange up to USD
2,000, in the form of foreign currency notes or TCs for future use or credit to their Resident Foreign Currency
(Domestic) [RFC (Domestic)] Accounts.
 For business trips abroad to countries, other than to Nepal and Bhutan, a person can avail of foreign exchange up to
USD 25,000 per visit irrespective of the period of stay, requires prior permission from the Reserve Bank. Visits in
connection with attending of an international conference, seminar, specialized training, study tour, apprentice training,
etc., are treated as business visits.
 For studies abroad the estimate received from the institution abroad or USD 100,000, per academic year, whichever is
higher.
ECS (Electronic Clearing Service):
ECS is an electronic mode of payment / receipt for transactions that are repetitive and periodic in nature. Essentially,
ECS facilitates bulk transfer of monies from one bank account to many bank accounts or vice versa. ECS is two types ECS
Credit scheme & ECS Debit scheme. ECS includes transactions processed under National Automated Clearing House
(NACH) operated by National Payments Corporation of India (NPCI).
ECS Credit enables payment of amounts towards distribution of dividend, interest, salary, pension, etc., of the user
institution. ECS Debit is useful for payment of telephone / electricity / water bills, cess / tax collections, loan installment
repayments, periodic investments in mutual funds, insurance premium etc., that are periodic or repetitive in nature and payable
to the user institution by large number of customers etc.
“Indo-Nepal Remittance Facility Scheme”:
Indo-Nepal Remittance Facility is a cross-border remittance scheme to transfer funds from India to Nepal, enabled
under the NEFT Scheme. A remitter can transfer funds up to Indian Rupees 50,000 (maximum permissible amount) from any
of the NEFT-enabled branches in India. The beneficiary would receive funds in Nepalese Rupees. Under the Scheme, even a
walk-in customer can transfer funds up to Rs 50,000 by depositing the cash at the remitting bank branch & it is also not
mandatory for the beneficiary to have a bank account. An originator in India is allowed to remit a maximum of 12 remittances in
a year under the scheme. High denomination note (Rs 500 & Rs. 1000) Maximum 25,000/- can be taken to Nepal but in total
no max limit.17. An originator in India is allowed to remit a maximum twelve remittances in a year under the ―Indo-Nepal
Remittance Facility‖ scheme?
Note:
 RRBs are working in all states except Sikkim & Goa.
 Loans given to poor farmers to purchase seeds, fertilizer etc generally through co-operative banks is called Taccavi
Loan
 A financial ratio used to measure a company‘s Liquidity is called Quick Ratio/Acid Test Ratio.
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“Don’t read success stories, you will only get a message. Read failure stories, you will get
some ideas to get success”-A. P. J. Abdul Kalam
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Chapter-III
CREDIT MANAGEMENT & LENDING PRACTICES
Advancing Loans:
 Cash credit-The debtor is allowed to withdraw a certain amount against a given security. The debtor withdraws the
amount within this limit, as per his requirement and also repays it. Interest is charged by the bank on the amount
actually withdrawn.
 Loans & Advances-These loans are given in the form of a fixed amount. Bank credits the amount of loan in the
account books of the debtor. The latter can withdraw it any time. The interest is chargeable on the whole amount
from the day; the loan is disbursed irrespective of the fact that the debtor withdraws the whole amount or part of it.
 Overdraft-Clients who have current account with the bank get the sanction to withdraw more money than is lying in
the said account. Overdraft facility is available for short term reliable parties.
Loan vs Advance
 Loans and advances are generally used for the same purpose; to obtain some extra funding during times of financial
difficulties.
 A loan is when one party (called the lender, which is usually a bank) agrees to give another party (called the borrower) a sum
of money that is to be paid back after a certain period of time with interest.
 An advance is a credit facility that is provided to the individual/corporation by the financial institution, bank, employer, friend,
relative due to mutual relationship.
 A loan is treated as a debt where a lender such as a bank will formally lend funds to a borrower, whereas an advance is a
credit facility, which is usually less formal than a loan.
 A loan requires an asset to be pledged as collateral, whereas this is not the case for advances.
 Loans are for a longer period of time, and need to be repaid with interest while advances are taken for shorter time periods,
and interest is not charged on the amount borrowed.
Cash Credit Vs Overdraft:
Cash Credit:
 Cash credits are more commonly offered for businesses than individuals.
 These are short term loan provided to companies to fulfill their working capital requirement.
 Tangible assets (Pledge or hypothecation of inventory.), such as stock in hand, raw materials or some other commodity
are kept as collateral.
 The credit limit extended on the cash credit account is normally a percentage of the value of the security offered‘
 The rate of interest is less than overdraft interest.
 Cash Credits are, in theory, payable on demand. These are, therefore, counter part of demand deposits of the Bank.
Overdraft:
 Overdraft is a facility given by the bank to companies, to withdraw money "more" than the balance available in their
respective accounts.
 These are short term loan can be used for any purpose
 Assets like financial instrument and property (like FDs, Mutual funds & insurance policies) are kept as security.
Credit Information Company(CIC):
 Credit rating agency(CRA):
A CRA is a company that assigns credit ratings (generally to companies/corporates), which rate a debtor‘s ability to pay
back debt by making timely interest payments & the likelihood of default. Some CRA in India are:
 Credit Information Services of India Limited(CRISIL), Mumbai
 Credit Rating Agency Of India(ICRA), Gurgaon,
 Credit Analysis and Research Limited(CARE), Mumbai
 Fitch Ratings India Private Limited, Mumbai
 Brickwork Ratings, Bengaluru
 ONICRA Credit Rating Of India Limited, Gurgaon,
 SMERA(SME rating agency of India), Mumbai
Leading Credit Rating Agency in World –
 Standard & Poor's (S&P) – Headquarter – New York, US

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 Moody's – Headquarter - New York, US

 Fitch - Headquarter - New York, US
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 DBRS (Dominion Bond Rating Service) - Headquarter - Toronto, Ontario, Canada

 Egan – Jones - - Headquarter – Pennsylvania, US
 Credit Bureau:
A Credit bureau or consumer reporting agency is an organization providing information on individuals borrowing & bill
paying habits. Credit information such as a person‘s previous loan performance is a powerful tool to predict his future behavior.
Some Credit Bureau in India are: -
 Credit Information Bureau India Limited(CIBIL), Mumbai

 High Mark credit information services
 Experian, Dublin, Republic of Ireland
 Equifax, Atlanta, Georgia, United States
Note:
 CRISIL is the largest credit rating agency in India, with a market share of greater than 60%.
 CRISIL Verification code is a 12-digit code
 CIBIL is the oldest credit information company of India estd. In 2000.
 CIBIL Transunion score is a 3 digit code ranges between 300 to 900. 79% of the loans approved are for borrowers
with a score greater than 750.
 ARCIL (Asset Reconstruction Company (India) Limited) is the first asset reconstruction company (ARC) in
India to commence the business of resolution of non-performing loans (NPLs) acquired from Indian banks and
financial institutions.
 CERSAI (Central Registry of Securitization Asset Reconstruction and Security Interest) is a central online
mortgage registry of India. It was primarily created to check mortgage frauds in which people took multiple loans
on the same asset from different banks.
 Stock Holding Corporation of India Ltd (SHCIL), India‘s largest custodian and depository participant (DP) based in
Mumbai, Maharashtra.
Set-Off, Lien, Pledge & Hypothecation:
 Set-Off:
It is a legal clause that gives a lender the authority to seize debtors deposit when they default on a loan. (OR) If a
debtor is unable to meet an obligation to his/her bank, the bank can seize the customers current deposit with the bank branch or
other branch of the same bank.
 Lien:
It is two types‘ General lien & Particular Lien.
 Bank possesses the right of general lien. Through this right banks can claim first right over the customers assets in his
control & adjust his dues or outstanding payable by the customer before the amount in balance is paid back.
 In particular lien the right or authority vests only in the particular product in possession of the creditor.
 Where a loan is not adjusted by customer despite deposits with the bank branch in some form, the bank can then adjust
the loan amount due from these deposits through the right of Set-Off.
 Pledge:
This is an instance of movable property being used as primary security for availment of bank advance. Here banks can
take physical possession of the goods & put their own lock on borrower‘s store/godown & appointing a storekeeper who
administers the movement of goods to and from the godown. Once a contract of pledge is established for a loan and in the
event of the loan not being repaid the bank can dispose of the goods to recover the amount of the loan by giving an earlier
notice. E.g. Gold/Jewelry, Goods, Stocks, NSC, Gold Bond.
 Hypothecation:
A diluted form of pledge is hypothecation. It is for Movable properties. Here the bank permits the physical possession
of the goods to remain with the borrower for more effective utilization of the security. E.g. Car, Vehicle.
 Mortgage:
Immovable Properties e.g. House, Machinery, Land
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Foreclosure & Fixtures:
 Foreclosure: It is a standard procedure where creditors like bank are authorized to obtain the title of the real estate
Page
property that has been pledged as collateral.
 Fixtures: The term used in the context of a real estate property, when assets like furniture are attached to the real
estate & are also included in its book value.
Base Rate Lending:
Base Rate is the minimum rate of interest which a bank has to charge from its customers and a bank can‟t
sanction loan on a rate below the base rate. This rate came into effect from July 1 2010. Before Base rate there was
„Benchmark Prime Lending Rate‟ or BPLR introduced in 2003. It was replaced with Base Rate because in BPLR banks had an
option to loan their special customers below BPLR. Banks may choose any benchmark to decide on the base rate.
Previously banks are used Average cost of fund based method but 2016 onwards using Marginal cost of fund based lending rate
to calculate base rate. The exceptions of base rate are:-
 Agriculture loans
 Govt. sponsored schemes (In these cases bank can lend below Base rate)
 Staff loans
 Loan against Deposit
 Export credit
Subprime Lending:
Lending loans to people who may have difficulty maintaining the repayment schedule, sometimes reflecting setback,
such as unemployment, divorce, medical emergencies etc. is called Subprime Lending. These loans are characterized by
higher interest rate, poor quality collateral and less favorable terms in order to compensate for higher credit risk.it has
contributed to financial crisis of 2007-08.(A subprime borrower is less likely to repay loan because of Bad credit history, low
income or poor). In simple a subprime borrower is a High risk borrower.
Priority Sector Lending:

Priority sector refers to those sectors of the economy which may not get timely and adequate credit in the absence of
this special dispensation. Typically, these are small value loans to farmers for agriculture and allied activities, micro and small
enterprises, poor people for housing, students for education and other low income groups and weaker sections. Priority Sector
includes the following categories: (i) Agriculture (ii) Micro, Small & Medium Enterprises (MSMEs) (iii) Education (iv)
Housing (v) Export Credit (vi) Renewable energy (vii) Social Infrastructure (viii) Weaker Sections. Any bank that lends up
to Rs 10 lakh to a household for solar power and biomass-based generators can classify the loan as priority sector. The
challenge for banks lies in disbursing 8% of their total credit to small farmers and 7.5% of bank credit to micro enterprises
(As per 2015 RBI Norms). Earlier, there were sub-limits for direct lending and indirect lending to agriculture. These two
segments have been merged making it easier for banks to achieve the 18% agri target as large loans to processed food
industry are also now covered under agriculture. RBI retained the 40 per cent PSL target for domestic banks.
NPA(Non-Performing Assets):
A NPA is an obligation payable to the bank which has not been made or the interest and principal amount has not been
paid on the due time. NPA is the loan or credit provided by the bank to its customers which could not be recovered in due time.
Thus NPA is somehow not yielding any income to the lender either in the form of principal or interest payments. NPA is also
known as ―Bad debts‖/‖Bad loans‖.
 NPA is shown at the assets side of the balance sheet whereas deposits are shown at the liability side.
 Generally if repayment not made for 90 days (180 Days for Foreign banks and for short duration crop agriculture loan
for 2 crop season from due date) considered as NPA.
 If an account remains NPA for a period of 12 Months it is classified as doubtful.
 Four crop seasons:- Rabi, Kharip, Zaid, Zaid rabi Crops seasons
 Rabi Crop: The term Rabi means "spring" in Arabic, and the Rabi crops are grown between the months mid-
November to April. Sowing season: October – December. Harvesting season: February – April. Important
Crops: Wheat, Barley, Gram, Linseed, Mustard, Masoor, Pea and Potatos
 Kharif crop refers to the planting, cultivation and harvesting of any domesticated plant sown in the rainy
(monsoon) season and it starts in June and to end in October. Sowing season: May – July. Harvesting
season: September to October. Important Crops: Jower, Bajra, Rice, Maize, Cotton, Groundnut, Jute, Hemp,
Sugarcane, Tobacco etc
 Zaid crops On the Indian sub-continent, the crops grown on irrigated lands which do not have to wait for
monsoons, in the short duration between Rabi and Kharif crop season, mainly from March to June, are called
Zaid crops (also written as Zayad crops). The main produce are seasonal fruits and vegetables. Sowing
season: August – September. Harvesting season: December – January. Important Crops: Rice, Jowar,
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Rapeseed, Cotton, Oilseeds

 Zaid Rabi crops: Sowing season: February – March. Harvesting Season: April – May. Important Crops:
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Water melon, Toris, Cucumber, leafy and Other vegetables
Main Reasons for Increasing NPA:
 Current macroeconomic situation in the country.
 Shortcomings in the credit appraisal, disbursal and recovery mechanism
 Increased interest rates in the past
 Lower economic growth.
 Aggressive lending by the banks in the past.
 Priority sector lending especially to agriculture and MSMEs.
Distressed asset:
An asset that is put on sale, usually at a cheap price, because its owner is forced to sell it. There could be various
reasons for this, including bankruptcy, excessive debt and regulatory constraints. Debt itself can be sold on to a new owner at
below face value (Distressed debt).
Loan/Debt Restructuring:
It is a process that allows a private or public company, or a sovereign entity facing cash flow problems and financial
distress to reduce and renegotiate its delinquent debts in order to improve or restore liquidity so that it can continue its
operations.
Recovery of Bad Debts or NPA :……(DRT, RDDBFI & SARFEISI Act):
 Before 1990: Banks had very hard time to recover bad debts. They had to approach civil courts for recovery but in
court DATE pe DATE(Tarikh pe Tarikh,Tarikh Pe Tarikh……….go on for years)
 In 1993: Govt. established DRT (33 Debts Recovery Tribunals and 5 Debts Recovery Appellate Tribunals) to deal with
NPA matters.
 The Debts Recovery Tribunal (DRT) enforces provisions of the Recovery of Debts Due to Banks and Financial
Institutions (RDDBFI) Act-1993 and also Securitization and Reconstruction of Financial Assets and
Enforcement of Security Interests (SARFAESI) Act-2002.
 Under the RDDBFI Act, 1993 banks approach the DRT whereas, under the SARFAESI Act, 2002 borrowers,
guarantors, and other any other person aggrieved by any action of the bank can approach the DRT.
 Appeals against orders passed by Debts Recovery Tribunal (DRT) lie before Debts Recovery Appellate Tribunal
(DRAT).A Debts Recovery Appellate Tribunal (DRAT) conducts circuit sittings in different cities where Debts Recovery
Tribunal (DRTs) are located over which it has appellate jurisdiction.
 Banks approach DRTs for disputed loans above Rs 10 lakh. DRTs are expected to resolve the cases within 6
months.
 DRTs are governed by RDDBFI Act. The setting up of a Debts Recovery Tribunal is dependent upon the volume of
cases. Higher the number of cases within a territorial area, more Debts Recovery Tribunal would be set up.
SARFAESI Act-2002:
 SARFAESI Stands for Securitization And Reconstruction of Financial Assets and Enforcement of Security
Interest Act.
 Banks utilize this act as an effective tool for NPA or Bad loan recovery.
 Upon loan default banks can seize the securities (except agricultural land) without intervention of court.
 SARFAESI Act is effective only for secured loans, where bank can enforce the security e.g. hypothecation, pledge &
mortgages. The Act also provides for establishment of Asset Reconstruction Company (ARC) regulated by RBI to
acquire asset from bank.
Willful defaulter:
Willful defaulter means that a party does not make a payment out of its will. The Willful defaulter is defined as follows:
 The party defaults in meeting its payment obligations even if it has capacity to repay.
 The party defaults in meeting its payment obligations and diverts the finance away from the purpose it was availed for.
 The funds are available with the firm in other form of assets and have not made a payment.
 The party defaults in meeting its payment and also disposed of the removable assets/immovable property which was
used f or the purpose of secured loan, without the knowledge of the Bank.
Money Laundering:
Money laundering is the process of creating the appearance that large amount of money obtained from serious crimes,
such as drug trafficking or terrorist activity, originated from an illegitimate source. The Financial Action Task Force (FATF) is
an intergovernmental body set up to combat Money Laundering. Enforcement Directorate(ED) in India monitors Money
Laundering.
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“If God answers your prayer, he is increasing your faith. If he is delaying, he is testing your
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Patience. If he denied, there is something better for you”

Chapter-IV
INDIAN FINANCIAL SYSTEM
INDIAN FINANCIAL SYSTEM
FINANCIAL FINANCIAL FINANCIAL

ASSETS MARKETS INTERMEDIARIES
DIRECT INDIRECT MONEY CAPITAL ORGANIZED UN-ORGANIZED

SECURITIES SECURITIES MARKET MARKET SECTOR SECTOR
Capital Market is two types-Primary & Secondary market. RBI is the

regulator of Money market & SEBI is the regulator of Capital Market. NBFC
BANKING
Financial Assets:
These are assets which are needed by a firm to carry on its business. The assets may be tangible (can touch
physically) or intangible. All the assets need finance through either by lender or by companies own saving. Most assets are
financed through selling a piece of paper called financial assets/financial instruments/securities. These papers have a value in
exchange because they are claims on the assets of the firm‘s assets & to future cash flow. It is two types
 Direct Securities (Primary Assets): These securities are issued directly by the ultimate borrower to the ultimate
investor. E.g. Share, debenture & Bounds
 Indirect Securities (Secondary Assets): These securities are not issued directly by the borrowers to the investors
rather through financial intermediaries to investors. E.g. Insurance Policy, Mutual Fund, Bank Deposits etc.
Financial Markets:
It is broadly classified into two types. (i) Money Market (ii) Capital Market
 Money Market:
The money market provides investment avenues of short term tenor. Money market transactions are generally used
for funding the transactions in other markets including Government securities market and meeting short term liquidity
mismatches. By definition, money market is for a maximum tenor of up to one year. Within the one year, depending upon the
tenors, money market is classified into:
 Overnight market or Call money - The tenor of transactions is one working day.
 Notice money market – The tenor of the transactions is from 2 days to 14 days.
 Term money market – The tenor of the transactions is from 15 days to one year.
Money Market Instruments:

 Treasury bills
 Commercial paper
 Bankers' acceptances
 Certificates of deposit
 Bills of exchange

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Repurchase agreements (Repos)

 Federal funds & short-lived mortgage
 Asset-backed securities
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 Ready Forward Contracts (RFC).
Treasury bills: These are the lowest risk category instrument for short term.
 T-Bill issued for period of 91/182/364 days.

 T-bill issued by Central Govt. & Sold by RBI on behalf of Govt. of India.
 There are no treasury bills issued by State Governments.
 Treasury bills are available for a minimum amount of Rs.25,000 and in multiples of Rs. 25,000. Treasury bills
are issued at a discount and are redeemed at par.
Note:
 The securities issued by the state governments and are also known as State Development Loans (SDLs). The issues
are also managed and serviced by the Reserve Bank of India. The tenor of state government securities is normally ten
years. State government securities are available for a minimum amount of Rs.10,000 and in multiples of Rs.10,000
 Treasury bills are issued at a discount on the face value hence earn no interest (Coupons) hence called Zero Coupon
Security or Deep Discount Securities.
Ways & Means Advances (WMA):
WMA were introduced as per an agreement between RBI & Govt. of India. WMAs are temporary (10 consecutive
working days for Central Govt. and 14 days for State Govt.) overdrafts by RBI to Government (both Central & State) to help
them to recover their temporary mismatches in cash flow of their receipts & payments.WMA replaces the earlier 14 days ad-
hoc T-Bill system w.e.f. 1997 & Its Max. Limit is 35,000 Cr.
Commercial paper(CP):
 Commercial Paper (CP) is an unsecured money market instrument issued in the form of a promissory note. It is also
issued at a discount on its face value & redeemed at par.
 Who can issue: Corporate, primary dealers (PDs) and the all-India financial institutions (FIs) that have been permitted
to raise short-term resources under the umbrella limit fixed by the Reserve Bank of India are eligible to issue CP.
 A company shall be eligible to issue CP provided the Tangible(i.e. Assets that have Physical form or which can be
easily converted into cash) net worth of the company, as per the latest audited balance sheet, is not less than Rs.4
Crore.
 Who can act as IPA: Only scheduled bank can act as an issuing & paying agent (IPA) for issuance of CP.
 Maturity Period: CP can be issued for maturities between a minimum of 7 days and a maximum up to one year from
the date of issue.
 Issue Limit: CP can be issued in the denomination of Rs. 5 Lakh or multiples thereof. The minimum credit rating shall
be A-2 of CRISIL as per rating symbol and definition prescribed by SEBI.
Certificate of Deposit(CD):
 Certificate of Deposit (CD) is a negotiable money market instrument and issued in dematerialized (In India, shares and
securities are held electronically in a dematerialized account, instead of the investor taking physical possession of
certificates) form or as a Usance (Usual period allowed for payment) Promissory Note against funds deposited at a
bank or other eligible financial institution for a specified time period.
 Who can issue: CDs can be issued by (i) scheduled commercial banks {excluding Regional Rural Banks and Local
Area Banks} and (ii) selected All-India Financial Institutions (FIs) that have been permitted by RBI to raise short-term
resources within the umbrella limit fixed by RBI.
 Maturity Period (For Banks): The maturity period of CDs issued by banks should not be less than 7 days and not
more than one year, from the date of issue.
 Maturity Period (For FIs): The FIs (Financial Institutions) can issue CDs for a period not less than 1 year and not
exceeding 3 years from the date of issue.
 Issue Limit: Minimum amount of a CD should be Rs.1 lakh, i.e., the minimum deposit that could be accepted from a
single subscriber should not be less than Rs.1 lakh and in multiples of Rs. 1 lakh thereafter.
Bills of exchange:
It is an instrument in writing, containing an unconditional order signed by the maker, directing a certain person to
pay a certain sum of money only to or to the order of a certain person or to the bearer of the instrument. It involves 3
parties The Drawer (who makes the order for making payment), The Drawee (to whom the order to pay is made,
generally a Bank) & The Payee (to whom the payment is to be made)
Promissory Note:
It is an instrument in writing (not being a bank note or currency note) containing an unconditional
undertaking/Promise, signed by the maker, to pay a certain sum of money to or to the order of a certain person. It involves two
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parties Drawer (the person who makes the note & promises to pay the amount stated therein) & Payee (the person to whom the
amount is payable)
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Bankers' Acceptances (BA):
 BA is a promised future payment, or time draft, which is accepted and guaranteed by a bank and drawn on a deposit
at the bank. The banker's acceptance specifies the amount of money, the date, and the person to whom the payment is
due. After acceptance, the draft becomes an unconditional liability of the bank.
 The party that holds the banker's acceptance may keep the acceptance until it matures(Held till Maturity), and thereby
allow the bank to make the promised payment, or it may sell the acceptance at a discount today to any party willing to
wait for the face value payment of the deposit on the maturity date.
 In bills of exchange the drawee is strictly a bank it is called Bankers Acceptance.
Ready Forward Contracts/Repurchase Agreement/ Repos:
 These are transactions in which two parties agree to sell and repurchase the same securities on a mutually decided
future date & price.
 E.g. it is essence for short term loan from one bank to other. Bank has some securities deposited at RBI. The
borrowing bank actually sells the securities to the lending bank & buys them back at the end of the period of loan at
higher price.
 Capital Market:
Capital market is a market for long term debt and equity shares. In this market, the capital funds comprising of
both equity and debt are issued and traded. This also includes private placement sources of debt and equity as well as
organized markets like stock exchanges. A key division within the capital markets is between the primary markets and
secondary markets. In primary markets, new stock or bond issues are sold to investors, often via a mechanism known as
underwriting. The existence of secondary markets increases the willingness of investors in primary markets, as they know
they are likely to be able to swiftly cash out their investments if the need arises. A second important division falls between
the stock markets (for equity securities, also known as shares, where investors acquire ownership of companies) and the
bond markets (where investors become creditors).
Capital Market Instruments:
 Debt Instrument (Bonds)

 Equities (Common Stock)
 Shares & Debentures
 Derivatives (Futures, Options, Swaps, Rights, Exchange Traded Funds, Securities)
 Foreign Exchange
 Fixed Deposits
 Govt. Securities (G-Secs)
Bonds: A bond is a debt instrument issued for a period of more than one year with the purpose of raising capital by borrowing.
The issuer promise to repay the principal along with interest (Coupon) on a specified date (maturity).
Common stock: Securities that represent equity ownership in a company. It is two types Share & Debenture.
BASIS OF DIFFERENCE SHARES DEBENTURES

Ownership Share holders are Real owners of the Debenture holders are creditors to
company the company who provide loan to the
company
Identity Share-holder Debenture-holder
Certainty to Return No certainty of return in case of loss Debenture-holders receives the
for share-holders interest even if there is no profit
Convertibility Share can‘t converted to debentures Debentures can be converted to
shares
Control Share-holders have the right to Debenture-holders don‘t possess any
participate and vote in company‘s voting right & can‘t participate in
meeting meeting.
BASIS OF DIFFERENCE PREFERENCE SHARE EQUITY SHARE

Right of Dividend Preference shares are paid dividend Equity shares are paid dividend out of
before the equity shares. the balance of profit available after
the dividend paid to preference
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shareholders.
Rate of dividend Fixed Decided by board of directors, year to
year depending on profits.
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Convertibility Preference share can be converted Equity shares are not convertible.
into equity shares, if the terms of
issue provide so.
Participation in management No rights Have rights
Voting right No Yes
Redemption of share capital Preference shares may be redeemed A company may buy-back its equity
shares.
Refund of capital At the time of winding up of the On winding up, equity share capital is
company, preference share capital is repaid after preference share capital
paid before the payment of equity is paid.
share capital
Derivatives: It is a financial contract whose value is based on or derived from a traditional security (stock, bands), an assets
(commodity) or market index.
 Future Contract: An agreement to sell or buy an asset at a certain date & price in future.
 Options: It gives buyer the right but not the obligation to buy or sell an asset at a set price on or before given date.
 Swaps: It refers to exchange of one financial instrument for another between parties concerned. The exchange takes
place at predetermined time as specified in contract.
 ETF (Exchange Traded Fund): These are open e-investment funds listed & traded on a stock exchange. It has low
cost, tax efficiency & stock like features
Gilt-edged securities:
Gilt funds, as they are conveniently called, are mutual fund schemes floated by asset management companies (AMC)
with exclusive investments in government securities or G-Secs. The schemes are also referred to as mutual funds dedicated
exclusively to investments in government securities. Government securities mean and include central government dated
securities, state government securities and treasury bills. The gilt funds provide to the investors the safety of investments made
in government securities.
Organized Sector: The institution which comes under the regulation of a centralized body is called so.
NBFC (Non-Banking Finance Corporation):
 A Non-Banking Financial Company (NBFC) is a company(other than commercial & cooperative banks) registered
under the Companies Act, 1956 engaged in the business of loans and advances, acquisition of
shares/stocks/bonds/debentures/securities issued by Government or local authority or other marketable securities of a
like nature, leasing, hire-purchase, insurance business, chit business but does not include any institution whose
principal business is that of agriculture activity, industrial activity, purchase or sale of any goods (other than securities)
or providing any services and sale/purchase/construction of immovable property.
 According to RBI a company will be treated as NBFC if its financial assets are more than 50% of total assets and
income from financial assets are more than 50% of the gross income.
 Example-LIC, UTI, development banks, loan companies, chit funds etc.
Difference between Banks & NBFCs:
NBFCs lend and make investments and hence their activities are akin to that of banks; however there are a few differences
as given below: -
 NBFC cannot accept demand deposits.
 NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself.
 Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation (DICGC) is not available to
depositors of NBFCs, unlike in case of banks.
 They are not registered in the banking act and don‟t have a banking license.
 They don‟t have to maintain CRR, SLR or CASA like banks.
 NBFCs can‘t lend more than 15% of its NOF (Net Owned Fund) to any single party or 25% of its NOF to a group.
RBI Guidelines for NBFCs:

According to the guidelines applicable to NBFCs with asset size of Rs. 100 crore and above, the NBFCs have to
21
maintain a loan-to-value (of shares pledged) of 50 per cent and accept only Group 1 securities as collateral for loans of a value
more than Rs. 5 lakh.
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Banking Ombudsman Scheme-1995:
 The Banking Ombudsman Scheme enables an expeditious and inexpensive forum to bank customers for
resolution of complaints relating to certain services rendered by banks.
 The Banking Ombudsman Scheme is introduced under Section-35(A) of the Banking Regulation Act, 1949 by RBI with
effect from 1995.
 The Banking Ombudsman is a senior official appointed by the Reserve Bank of India to redress customer complaints
against deficiency in certain banking services.
 All Scheduled Commercial Banks, Regional Rural Banks and Scheduled Primary Co-operative Banks are
covered/Included under the Banking Ombudsman Scheme,2006
Other Important Points:

 The Banking Ombudsman does not charge any fee for filing and resolving customers‘ complaints.
 The amount, if any, to be paid by the bank to the complainant by way of compensation for any loss suffered by the
complainant is limited to the amount arising directly out of the act or omission of the bank or Rs 10 lakhs, whichever is
lower.
 The Banking Ombudsman may award compensation not exceeding Rs 1 lakh to the complainant only in the case of
complaints relating to credit card operations for mental agony and harassment.
 If a complaint is not settled by an agreement within a period of one month, the Banking Ombudsman proceeds further
to pass an award. Before passing an award, the Banking Ombudsman provides reasonable opportunity to the
complainant and the bank, to present their case.
 If one is not satisfied with the decision passed by the Banking Ombudsman, one can approach the appellate authority
against the Banking Ombudsmen‘s decision. Appellate Authority is vested with a Deputy Governor of the RBI.
 If one is aggrieved by the decision, one may, within 30 days of the date of receipt of the award, appeal against the
award before the appellate authority.
Payment & Small Banks:
 Payment Banks Small Banks

 Prepaid card issuer, Telecom companies, NBFCs,  Individuals/Professionals with 10 years‘
Who can BCs, Corporates, Reality sectors, Co-operative experience in finance, NBFCs, Micro finance
promote? banks & PSUs. companies & Local area banks.
 Minimum Paid-up capital 100 Cr  Minimum Paid-up capital 100 Cr
 Maintain 75% of deposits in Government bonds &  Extended 75% of loan to priority sector
What they 25% deposit in other banks.  Maintain minimum reserve requirement
must  Have at least 26% investment by Indians  25% branch in unbanked rural areas
Do/have?  Get listed if net worth 500 Cr  Loan cap to individual and group as 10% & 15%
 25% branch in unbanked rural areas of net worth respectively
 Be fully networked & technology driven  Have a business correspondent(BC)
 Can collect deposits with a maximum balance  Maintain minimum capital adequacy ratio 15%
of 1 Lakh of the loan
 Can Offer internet banking  Can Sell forex to customers
 Can Sell mutual funds, insurance & pensions  Can Sell mutual funds, insurance & pensions
What they  Can Offer bill payment service for customers  Can convert into full-fledged bank
can Do?  Can have ATMs & BCs  Can expand across countries
 Can function as BC of other bank  Can give Loans below 25 Lakhs
 Can‟t offer Credit card  Can‘t extend large loans >25 Lakh
What they  Can‟t extend Loans  Can‘t float subsidiaries
can‟t Do?  Can‘t handle cross border remittances  Can‘t deal in sophisticated financial products
 Can‘t accept NRI Deposits
Statutory Body Vs Regulatory Body:

 Statutory refers to laws passed by the state of federal government. It is a non-constitutional body. This body is created by
statute i.e. act of parliament. A cabinet resolution can be passed to establish this body. It has to rely upon its statute to
derive power.
Ex: Planning commission, National commission for OBCs, SEBI etc.
 Regulatory means a rule issued by some agency that the government has given authority to regulate an industry.
Ex: RBI, IRDA etc.
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“Be a student as long as you still have something to learn, and this will mean all your life.”– Henry
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L. Doherty
Chapter-V
RESERVE BANK OF INDIA (RBI)
st
 RBI established on 1 April 1935 with a paid-up capital of 5 cr. &nationalized in 1949 on the recommendation of Hilton-
Young Commission. It passed under RBI Act-1934.
Note:
 Paid up capital/Core Capital: The amount of capital that has received from the shareholders is called so. (For
new bank license it is 500 Cr& License period 18 months). Paid up capital for non-scheduled bank is less than
5 Lac.
 Seed Capital: The initial capital needed to start a business is called so.
 Authorized Capital: The maximum amount of capital which a company can raise through sale of its share is
called so.
 Before independence RBI was acting as a central bank of Pakistan & India. Some popular central banks of the world are
given below-
 INDIA – Reserve bank of India (INR)
 US - Federal Reserve Bank (USD)
 EUROPE - European central bank (EUR)
 UK - Bank of England (GBP)
 JAPAN - Bank of japan (JPY)
 SWITZERLAND - Swiss national bank (CHF)
 CANADA - Bank of Canada (CAD)
 AUSTRALIA - Reserve bank of Australia (AUD)
 NEWZEALAND - Reserve bank of New Zealand (NZD)
 BANGLADESH – Bangladesh bank
 BHUTAN – Royal monetary authority of Bhutan
 NEPAL – Nepal Rastra Bank
 PAKISTAN – State bank of Pakistan
 CHINA (MAINLAND) – People's bank of china
Structure of RBI:
RBI Managed by central board of directors (Presently 21).

 1 Governor
 4 Deputy Governor
 2 Finance ministry representatives
 10 Govt. nominated directors to represent Indian economy
 5 directors to represent local board (HQ in Mumbai, Calcutta, Chennai, New Delhi)
 1 COO(Chief Operating Officer) in the same rank as Governor.
 Four Deputy Governor of RBI are H.R KHAN, URJIT PATEL, R GANDHI & S.S MUNDRA.
 RBI have 22 regional offices, 33 departments & HQ in Mumbai. (Previously Kolkata).
 RBI has 3 fully owned subsidiaries NHB, DICGC, BRBNMPL.
 RBI releases FSR (Financial Stability Report) Half Yearly (Jun-Dec Alternatively).
 RBI Reviews Monetary policy Bi-Monthly.
ST TH st st
 Financial year of RBI- 1 July to 30 June (for Bank-1 April to 31 March).
 Four quarters of Financial System-Q1(April-June), Q2(July-Sept), Q3-(Oct-Dec), Q4(Jan-March)
 RBI has Board for Financial Supervision (BFS) they meet typically every month.
 RBI has Board for Payment & Settlement Systems (BPSS).
RBI Training Centers:
 The Reserve Bank Staff College, Chennai (for Executives)

 College of Agricultural Banking, Pune
 Zonal Training Centre (to train non-executive staffs)
RBI Research Institutes:
 NIBM (National Institute for Bank Management), Pune

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 IGIDR (Indira Gandhi Institute for Development & Research), Mumbai

 IDRBT (Institute For Development & Research in Banking), Hyderabad
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Functions of RBI:
FUNCTIONS OF RBI
TRADITIONAL DEVELOPMENT REGULATORY

FUNCTION FUNCTION FUNCTION
CENTRAL GENERAL QUANTITATIVE QUALITATIVE

BANKING BANKING CREDIT CREDIT
FUNCTION FUNCTION CONTROL CONTROL
CENTRAL BANKING FUNCTION:

(A) Issuer of Paper Currency:
 For currency RBI has a separate department called Issue Department
 RBI can issue Currency note of denomination of Rs. 2, 5, 10, 20, 50, 100, 500, 1000 (currently in circulation)
&Maximum denomination Rs. 10,000(Currently not in circulation).
 Rs.1 denomination note are issued by Govt. of India & bears the signature of Finance Secretary. All other
denomination note issued by RBI & bears the signature of RBI Governor.
 To issue currency note RBI uses Minimum Reserve System method under which RBI has to maintain Rs. 115 Cr
as Gold & Rs. 85 Cr. Of Foreign exchange with itself. Minimum 200 Cr. Reserve requires to issue bank note.
 Notes are printed in 4 printing press Dewas(MP), Salboni(WB), Nasik(Maharastra), Mysore(Karnataka).
 Coins are minted by Govt. of India in 4 places Noida(UP), Mumbai, Kolkata, Hyderabad & issued through 22
regional offices in India.(Paper for currency note bought from paper mills at Hoshangabad(MP) & Mysore.
Currency note printed in OVI (Optically Viable Ink) imported from Switzerland).Maximum Rs.1000/- coin can be
minted (But Currently Rs.1000 not in Circulation).
 Legal Tender: The coins are issued under the authority of section 6 of the Coinage act, 2011 shall be legal tender
in payment or on account i.e. provided that a coin has not been defaced and has not lost weight so as to be less
than such weight as may be prescribed in its case. Coins of any denomination not lower than one rupee shall be
legal tender of any sum. 50 Paise coin shall be legal tender of any sum not exceeding Rs.10. The clause “I
Promise to Pay” printed on the bank notes, which means that the bank note is a legal tender for the specified
amount. As per RBI Act, the bank is liable to pay the value of bank note.
 Some fact about Indian Rupees:
 Rupee symbol designed by Uday Kumar, IIT Professor.
 India & Bhutan is official user of Indian rupees.
 Nepal & Zimbabwe is unofficial user of Indian rupees.
 One rupee note issued by Govt. of India & bears sign of Finance Secretary.
 Other notes are issued by RBI & bear a sign of RBI Governor.
 Note printing in India based on ―Minimum Reserve System‖
 A bank note contains 17 Languages total (Including Hindi & English) & 15 Languages on front panel.
(B) RBI Clean Note Policy:

 To handle notes without writing or excessive folding RBI has clean note policy.
 Soiled banknote means a note which, has become dirty due to usage and also includes a two piece note pasted
together wherein both the pieces presented belong to the same note, and form the entire note.
 Mutilated banknote is a banknote, of which a portion is missing or which is composed of more than two pieces.
 Imperfect banknote means any banknote, which is wholly or partially, obliterated, shrunk, washed, altered or
indecipherable but does not include a mutilated banknote.
 To facilitate the distribution of banknotes and rupee coins, the Reserve Bank has authorized selected branches of
scheduled banks to establish Currency Chests. The currency chest provides exchange facility for torn, mutilated
or defective notes.
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(C) RBI‟s Anti-Counterfeiting Measure:

 To identify fake currency notes RBI has a portal ― Pehchano Paaise ki boli kyunki PAISA BOLTA HAI‖
 Bank notes have some security feature like security thread, Identification mark, water mark & tilted view.
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 Features Bank note to help visually challenged people:
 Each denomination is a different size; the greater the value the larger the note.
 The denomination numerals are raised print in the central area.
 Identification mark on front left side.
 For Rs.1000 note-Diamond shape mark (♦)
 For Rs.500 note-Circle shape mark (●)
 For Rs.100 note-Triangle shape mark (▲)
 For Rs.50 note-Square shape mark ( ■ )
 For Rs.20 note-Rectangle shape mark ( ▄ )
 For Rs.10 note-No mark
(D) Regulation of Credit:

By changing the interest rate, loan policy & investment policy of commercial bank RBI regulate the credit.
(E) Banker‟s Bank(Lender of the Last Resort):
By performing 3 basic functions RBI helps the member bank
i. It acts as a lender of the last resort
ii. It is the custodian of cash reserves with commercial bank
iii. It clears, transfers the transactions & acts as a central clearing house.
(F) Banker of the Government:
 It performs various banking functions of the central and state Governments Such as to accept deposits, collect
tax & make payment on behalf of the Govt.
 RBI acts as a representative of the Govt. at international level.
 It maintains Govt. account & also provides financial advice to the Government.
(G) Foreign Exchange Management:
 It maintains foreign exchange rate.
 It brings demand and supply of foreign currency close to each other & maintains stability.
 RBI deals with foreign currencies which are the members of IMF only
What actually is FOREX?

 Reserves are maintained by countries for meeting their international payment obligations — both short and long terms,
including sovereign and commercial debts, financing of imports, for intervention in the foreign currency markets during
periods of volatility, besides helping to boost the confidence of the market in the ability of a country to meet its external
obligations and to absorb any unforeseen external shocks, contingencies or unexpected capital movements.
 India's foreign exchange reserves comprise foreign currency assets, gold and special drawing rights(SDR) allocated to it
by the International Monetary Fund (IMF) in addition to the reserves it has parked with the fund. Foreign exchange
reserves are held and managed by the RBI.
 The Foreign currency assets are investment mainly in instruments abroad which have the highest credit rating and which
do not pose any credit risk. These include sovereign bonds, treasury bills and short-term deposits in top-rated global
banks besides cash accounts.
 The Special Drawing Right (SDR) is an interest-bearing international reserve asset created by the IMF in 1969 to
supplement other reserve assets of member countries. The SDR is based on a basket of international currencies
comprising the U.S. dollar, Japanese yen, euro and pound sterling. It is not a currency, nor a claim on the IMF, but is
potentially a claim on freely usable currencies of IMF members. It can be held and used by member countries, the IMF,
and certain designated official entities called "prescribed holders"—but it cannot be held, for example, by private entities
or individuals.
GENERAL BANKING FUNCTION:
(A) Accepting Deposits: Accepts deposits of Central & State Govt. & port trust without paying any interest.
(B) Deals in Bills: RBI buys, sells & rediscounts the promisory note, bills of exchange & Hundis which are not exceeding
90 days duration & payable within the country.
(C) Lending Money: RBI provides loans to central Govt., state Govt. & Commercial banks against certain security such as
Govt. securities, Gold, Govt. bonds etc.
(D) Deals in Agricultural Bills: RBI deals in such agricultural bills which payable in India & duration are not exceeding 15
months.
(E) Deals in foreign securities: Hence RBI called as custodian of foreign exchange.
(F) Take Loans: RBI can borrow loans from the scheduled commercial banks for not exceeding 30 days.
(G) Deals with costly metals: Like Gold, Silver & Metal coins.
(H) Deals with Banks of Foreign Countries: RBI deals only with those countries which are members of IMF.
DEVELOPMENT FUNCTION:
(A) Development of Agriculture: It advices Central, State Govt. & Cooperative banks on agricultural growth. Helps in
establishment of Go downs & warehouses. Established NABARD to help agricultural sector.
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(B) Development of Industries: For development of industries organizations recommended by RBI are IDBI, SIDBI, ICICI,
HDFC & MUDRA Bank.
(C) Development of Import Export: Set up EXIM Bank, ECGC for promotion & refinancing.
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(D) Development of banking system: Set up RRBs, opening 25% branch in rural areas, co-operative banks, small &
payment banks.
(E) Development of Bill Market: commercial bills, letter of credit, bills of exchange.
REGULATORY FUNCTION:
(A) Tools for Quantitative Credit Control:
Bank Rate (Basically for Long Term i.e. more than 90 days):
 The rate of interest that RBI charges from scheduled commercial bank for loan given to them is called bank
rate.
 Currently it is 8.25%.
 Bank rate is not used as a weapon to check price rise.
Cash Reserve Ratio (CRR):
 Banks have to deposit certain percentage of their NDTL (Net Demand and Time Liabilities) with RBI, this is called CRR.
 Currently it is 4%
 Maximum value of CRR can be 15%.
 RBI increases CRR to drain out excessive money from the bank.
 Bank send reports to RBI on Fortnight basis (=2 weeks or 14 days) that “our NDTL is „X‟ & we are maintaining SLR
& CRR on it as per your direction”.
 RBI brought down the minimum daily maintenance of CRR from 99% to 95% w.e.f. Sept 2013.
Note:
NDTL= Demand liabilities (i.e. CASA Deposit, Demand Deposits, Unclaimed Deposit) + Time Liabilities (i.e. Fixed
deposits, Recurring Deposits, Gold Deposits& cash certificates). Note that bank has many source of income in a day these
are not a part of NDTL. CRR & SLR strictly calculated on NDTL only.
Statutory Liquidity Ratio (SLR):
 Every bank has to maintain some percentage of their NDTL as liquidity assets (i.e. Cash/Gold/Govt. Securities which
are easily convertible to cash) with itself this is called SLR.
 Currently SLR is 21.5 %.
 The maximum value of SLR can be 40 %.
Note: CRR & SLR protects a bank against bank run or save the bank from collapse.
Marginal Standing Facility (MSF)(Basically for Overnight basis):
 It is same as bank rate but here bank borrows from RBI for Overnight basis(i.e. for one day) against government
securities(G-Secs).
 MSF always 1% above repo rate & banks can draw only up to 0.25 % of their NDTL from RBI.
 Currently MSF is 8.25 %.
Liquidity Adjustment Facility (LAF):
 It is the monetary policy tool which allows banks to borrow money through repurchase agreement.
 LAF is used by banks to adjust their day to day liquidity mismatch.
 LAF is two types Repo Rate & Reverse Repo Rate
 Repo Rate: The rate at which banks borrow from RBI during shortage of funds for a period less than 90 days
is called Repo rate. Currently it is 7.25 %.
 Reverse Repo Rate: The rate at which banks deposit their excess funds/liquidity with RBI is called Reverse
repo rate. It is generally 1 % less than Repo rate. Currently it is 6.25 %.
 Term Repo: Under term repo, RBI lends to banks through auction of funds. Term repo under LAF is for 7
days and 14 days in addition to existing repo/reverse repo. The minimum interest charged has to be above the
repo rate and there is no limit for maximum interest rate because auction is made on the rate of interest. The
total amount of liquidity injected through term repos would be limited to (i) 0.25% of NDTL (For 7 days repo)
(ii) 0.75 % of NDTL (For 14 Day repo).
Open Market Operation (OMO):
 Under Open Market Operation RBI controls the flow of credit through the selling & purchase of Govt. Securities (G-
Secs.) in open market in order to control the liquidity flow.
Market Stabilization Scheme (MSS):
 To control the liquidity of more enduring nature RBI sells & purchases short dated Govt. securities & Treasury bills this
is called MSS.
Differential Rate of Interest:
 Under differential rate of interest any bank which borrows fund from RBI beyond the Quota fixed for it has to pay higher
interest rate than the prevailing bank rate.
Direct Action:
 In case of defiance of the order of RBI, the RBI can take direct action against the member bank.
 RBI can also recommend the permanent closer of the bank under certain circumstances.
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(B) Tools for Qualitative Credit Control:

 Change in margin requirement on loan
 Credit Authorization Scheme: Before sanctioning a credit of Rs. 2 Cr or more to any debtor every bank has to
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get authorization from RBI.
 Selective Credit Control:
 Maximum limit of the loan
 Rationing of credit: Under this RBI fixed credit quota for member banks as well as their limits for the payment of
bills.
 Moral Suasion: RBI exercise moral influence upon the member banks with a view to pursuing its monetary
policies. Simply Moral suasion is the suggestion & guidelines by RBI to the member banks.
MONEY SUPPLY & TYPES OF MONEY:
 M0(Reserve Money) - (M0 = Currency in Circulation + Bankers' Deposits with RBI + Other deposits with RBI)
 M1(Narrow Money) - (M1 = Currency with public + Demand deposits with the Banking system + Other deposits
with RBI.
 M2 - (M2 = M1 + Time Liabilities Portion of Savings Deposits with the Banking System + Certificates of Deposit
issued by Banks + Term Deposits of residents with a contractual maturity of up to and including one year with the
Banking System (excluding CDs)
 M3(Broad Money) - (M3 = M2 + Term Deposits of residents with a contractual maturity of over one year with the
Banking System + Call/Term borrowings from 'Non-depository' Financial Corporations by the Banking System)
 M4 - (M4 = M3 + All deposits with post office savings banks(Excluding National Savings Certificate))
(In Indian economy only M1&M3 are present. It measures the total monetary resources of the country)
Types of Money:
 Commodity Money-Its value is derived from the commodity out of which it is made. e.g. Ag,Au,Cu
 Representative Money-It includes token coins, or any other physical tokens like certificates.
 Fiat Money- It is the money whose value is not derived from any intrinsic value or any guarantee that it can be
converted into valuable commodity (like gold), Instead it derives value only based on government order (fiat).
Do You Know? Some popular interbank networks are
The Highest Civilian Honor of  Cashnet is an interbank network in India

managed by Euronet Services India Pvt. Ltd.
India: Bharat Ratna which is a subsidiary of Euronet Worldwide.
 CashTree is an interbank network in India that
Pakistan: Nishan-e-Pakistan has been in operation since March 2004. Bank
of India is the settlement bank for this network.
Russia: Hero of the Russian Federation  Cirrus is a worldwide interbank network
operated by MasterCard Worldwide. It links
England: The Knight Grand Cross MasterCard, Maestro, Diners Club credit, debit
and prepaid cards to a network of over
France: Knight of the Legion of Honour 1,000,000 ATMs in 93 countries.
 Plus (also known as Visa Plus or the Plus
USA: Presidential Medal of Freedom
System) is an interbank network that covers
all Visa credit, debit, and prepaid cards, as well
Canada: The Cross of Valour, The Victoria Cross
as ATM cards issued by various banks
Japan: Order of the Rising Sun, Gold and Silver Star worldwide.
 MITR is a Multi-lateral ATM Network Sharing
Germany- The Cross of Order of the Merit arrangement of 6 member Banks in India. PNB
acts as Settlement Bank for MITR Network
“All Birds find shelter during a rain. But Eagle avoids rain by flying above the Clouds.” no
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Difference, only Attitude matters - A.P.J Abdul Kalam

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Chapter-VI
NEGOTIABLE INSTRUMENTS
The Negotiable Instruments Act (1881) does not define a negotiable instrument but merely state that a negotiable
instrument is that whose ownership is transferable i.e. it is a promissory note, bill of exchange or cheque payable either to
order or bearer.
NEGOTIABLE NON-NEGOTIABLE QUASI-NEGOTIABLE

 Promissory note(CDs & CPs)  Money order  Bill of lading
 Bills of exchange  Postal order  Dock warrant
 Cheque  Deposit receipt  Carriers receipt
 Exchequer bills  Share certificate  Later of credit
 Circular note  Bank note  Railway receipt
 Dividend & share warrant  National Savings Certificate(these  Wharfingers certificate
 Bearer debenture certificates are issued by Govt. of
 Demand draft(DD) India & available in post offices.
Maturity 5 to 10 yrs)
Note:
 As per Indian currency Act (sec. 21) a Currency note is not a Negotiable Instrument.
 Bank Draft/Banker‘s Cheque is not defined in NI Act, but still is a negotiable instrument due to usage, practice &
various judgment of court.
 A Bank Draft/Banker‟s Cheque is a bills of exchange in which a bank orders its branch or another bank, as the case
may be to pay a specified amount to a specified person or to the order.
Types of Negotiable Instrument:
 Promissory note
 Bill of exchange
 Cheque
 Others (hundis, T-bills, share, warrants)
(Hundi is the oldest known instrument used for the purpose of transfer of money without its actual physical movement).
BASIS PROMISARY NOTE BILL OF EXCHANGE CHEQUE

It is an instrument in writing It is an instrument in writing It is an order to a bank to
which contain an which contain an unconditional pay a stated sum from the
Definition unconditional promise by the order (to the drawee) of drawer's account to the
debtor to pay a certain payment by the creditor to the payee written on a specially
amount to the creditor. debtor. printed form.
Involves 2 parties i.e. Drawer Involves 3 parties i.e. Drawer, Involves 3 parties i.e.
Parties & Payee Drawee & Payee Drawer, Drawee & Payee.
No need of acceptance Acceptance by Drawee(Bank) No need of acceptance

Acceptance is necessary
Discounting Can‘t be discounted Can be discounted Can‘t be discounted
Area Generally Inland Can be Inland or Foreign Drawn only on drawers
bank.
Stamp Legally required Legally required Not required
Debtor/Creditor Drawer is Debtor Drawer is Creditor Drawer is either
Debtor/Creditor
 Promissory note: It is an instrument in writing (not being a bank note or currency note) containing an unconditional
undertaking/Promise, signed by the maker, to pay a certain sum of money to or to the order of a certain person. It
involves two parties Drawer (the person who makes the note & promises to pay the amount stated therein ) & Payee
(the person to whom the amount is payable)
Q. Is Currency/Bank notes a Promissory note?

The currency notes bear the following note signed by Governor Reserve Bank of India (for more than Rs.1)
and Finance Secretary (`Rs.1): I promise to pay the bearer a sum of ________Rupee/ Rupees. However, Currency
28
notes are money and they don't fulfill the conditions of the Promissory Note. The currency is excluded from NI act and
governed by Indian Currency Act. So Currency notes are not promissory Notes.
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 Bills of Exchange: It is an instrument in writing, containing an unconditional order signed by the maker, directing a
certain person to pay a certain sum of money only to or to the order of a certain person or to the bearer of the
instrument. It involves 3 parties The Drawer (who makes the order for making payment), The Drawee (to whom the
order to pay is made, generally a Bank) & The Payee (to whom the payment is to be made)
Difference between cheque and demand draft:
CHEQUE DEMAND DRAFT(DD)

Issued by an individual Issued by a bank
Issuer must have a bank account Issuer need not have a bank account
Can get Dishonored/Bounced Is always Honored &certainty in payment
It is Post-paid It is Pre-paid
Can made payable to the bearer or order Always payable to the order of a certain person
Defined in Negotiable Instrument Act-1881 Not precisely defined in Negotiable Instrument Act-1881
The drawer & payee are different person The drawer & drawee are same bank(but not same branch)
Payment can be stopped by drawer Once initiated Payment can‘t be stopped
Need signature to transfer funds Don‘t require signature to transfer fund
It is risky & generally not used in business Payment guaranteed, no risk& safest mode of payment
transaction(Txn.)
Types of Cheque:
 Open Cheque: A Cheque is called open when it is possible to get cash over the counter at the bank (Otherwise the
cheque is called Account Payee Cheque).
 Bearer Cheque: It is payable to any person who presents it for payment at the bank counter.
 Crossed Cheque: The open cheque is subjected to risk of theft. A cheque can be crossed by drawing to transverse
parallel lines across the upper left corner of the cheque, with or without the writing ‗Account payee‘ or ‗Not negotiable‟.
It is credited to the bank account of the payee hence also called A/C Payee cheque.
 Order Cheque: It is paid to a particular person as ordered by payee.
 Antedated Cheque: It is a cheque written by the drawer dated at some point in the past. E.g. cheque presented to
th th
bank on 5 Aug 2015 & it is signed/issued by drawer on 5 July 2015.
 Postdated Cheque: It is a cheque written by the drawer for a date in future. Whether a post-dated cheque may be
cashed or deposited before the date written on it by the drawer/issuer depends on the country. In US & UK the post-
dated cheques are payable any time while in India & Australia pot dated cheques are not payable until the date written
th th
on the cheque reached. E.g. cheque presented to bank on 5 Aug 2015 & it contains issued date 5 Sept 2015.
th
 Stale Cheque: A cheque after 3 months from the date of issue is called so. E.g. Cheque presented to bank on 5 Aug
th
2015 & it contains the issue date 5 Jan 2015.(i.e. >3 months). A stale cheque is a antedated cheque.
 Mutilated Cheque: It is a cheque which is tore down in to two or more pieces.
 Inchoate Cheque: It is legally valid. It bears sign of bearer but some other particular say date or amount or place are
missing. The holder can fill and complete the instrument.
rd
 When an NI is delivered to a 3 party to be handover to the payee subject to fulfill of some condition or for a special
purpose (like Daughter‘s Marriage) it is called ESCROW.
Note: Cheque is a Negotiable Instrument, but Crossed cheque is not a Negotiable Instrument as its further transfer is not
possible.
ENDORSEMENT OF A NEGOTIABLE INSTRUMENT:
Endorsement means the signature of the maker/ drawer or a holder of a negotiable instrument, either with or
without any writing, for the purpose of negotiation. The endorsement is done by signing on the instrument customarily on its
back & where the space is insufficient on a slip of paper annexed thereto called ―allonge‖. Endorsement is 7 types.
(A) Blank/General Endorsement:

 Here endorser signs his name without mentioning the name of the person to whom the instrument is endorsed.
 Example:
29
Sd/-
Mr. G.C Nayak
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(Sd/- implies Signature of Drawer/Signature & Designation/Signature Declusturing)
(B) Special/Full Endorsement:

 Here the endorser not only writes his name but also write the name of the person to whom the instrument is
endorsed.
 Example:
“Pay Mr. X or Order”

Sd/-
Mr. G.C Nayak
(C) Partial Endorsement:

 If the instrument purposes to be endorsed for a part of the amount payable, the endorsement is called Partial & it
is legally Invalid/Inefficient.
 Example:
“Mr. X holds a bill for Rs. 10,000/- & endorses in favor of
Mr. A for Rs. 5000/- and also in favor of Mr. B for Rs.
5000/-.It is partial & Invalid”
Sd/-
Mr. G.C Nayak
(D) Restrictive Endorsement:
 Here the endorser restricts the further negotiation or transferability of the instrument by expressing in words at
the back of the instrument.
 Example:
“Pay Mr. X only”

Sd/-
Mr. G.C Nayak
(E) Conditional Endorsement:

 The endorsement may be preceded by certain condition which should be fulfilled by the endorsee to receive the
payment.
 Example:
“Pay Mr. X or Order, after his marriage by 2022”

Sd/-
Mr. G.C Nayak
(F) Facultative Endorsement:

 Here the endorser expressly gives up some of his rights under the negotiable instrument.
 The endorsee is relieved of his duty to give notice of dishonor to the endorser & the endorser remains liable to
the endorsee for non-payment of the instrument, even though no notice of dishonor has been given to them.
 Example:
“Pay Mr. X or order, notice of dishonor waived”
Sd/-
Mr. G.C Nayak
(G) Qualified/Sanc Frais/Sans Resource/Without Resource Endorsement:

 Here the endorser expresses that he would not liable for any expenses incurred by the endorsee or any
subsequent holder, in case of dishonor of the instrument i.e. the endorser is liable for the amount of the
instrument only not on other expenses.
 Example:
“Pay Mr. X or Order, Sans Resource”
30
Sd/-
Mr. G.C Nayak
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Note:
The Grounds of Dishonor of a Negotiable Instrument may be due to insufficient funds or account closed or “Stop
Payment” instruction on the instrument.
CROSSING OF A NEGOTIABLE INSTRUMENT:
When an instrument bears across its face two parallel transverse lines or an addition of the name of a Banker,
either with or without the words ―& Co.‖, ―Account Payee‖ etc. it is called Crossing. The significance of crossing is that the
payment of the instrument can only be made through a Banker (Bank). When it is a crossed instrument it gives direction to the
paying Banker (Bank) to pay the money to a Banker. Thus the holder of such an instrument must deposit the same into his or
some other person‘s Bank a/c for collection. An instrument is crossed in order to provide a safeguard against theft of fraud.
Crossings seize a negotiable instrument for counter payment & make it safeguard against theft/fraud.
Types of Crossing:
Crossing are mainly two types, these are (i) General Crossing (ii) Special Crossing.
 General Crossing: Section 123 of Negotiation Instruments Act, 1881, defines a general crossing as follows: -When a
Cheque bears across its face two parallel traverse lines or simply two parallel lines either with or without the words ―Not
negotiable‖, ‗&Company‘ or ‗A/c. Payee‘ shall be deemed to be crossed generally.
E.g. (1)……………… (2) & Co. (3) A/c. Payee (4) Payee‘s Account only (5) Not negotiable
 Special Crossing: Section 124 of the Negotiable Instruments Act, 1881, defines special crossing as follows: - When a
Cheque bears across its face two parallel traverse lines or simply two parallel lines in addition to the name of a Banker
with or without the words ―not negotiable‖,‗& Company‘ or ‗A/c. Payee‘ shall be deemed to be crossed specially and to
be crossed to that Banker.
E.g. (1) Pubali Bank (2) Payee‘s A/c. at Sonali Bank (3) Janata Bank (4) Not negotiable Agrani Bank
 Difference between General and Special Crossing:
GENERAL CROSSING SPECIAL CROSSING

1. Drawing of two parallel transverse lines is a must. 1. Drawing of two parallel transverse lines is not essential.
2. Inclusion of the name of a banker is not essential. 2. Inclusion of the name of a banker is essential.
3. In General Crossing paying banker to honor the 3. In Special Crossing paying banker to honor the cheque only when
cheque from any bank A/C. it is presented through the bank mentioned in the crossing and no
other bank.
4. General Crossing can be converted into a Special 4. Special Crossing can never be converted to General Crossing.
Crossing.
5. In case of General Crossing the words ―And 5. In case of Special Crossing the name of a banker may be written
Company‖ or ―& Company‖ or ―Not Negotiable‖ between within two parallel transverse lines or with the words ―And Company‖
the transverse lines to highlight the crossing does not or ―Account Payee Only‖ or ―Not Negotiable‖ the inclusion of these
carry special significance. words has become customary.
 Opening of Crossing:
If the crossing on a cheque is cancelled, it is called opening of the crossing. The cheque thereafter becomes an open
cheque. Only the drawer of the cheque is entitled to open the crossing of the cheque by writing the words ‗Pay Cash‘ and
canceling the crossing along with his full signature.
Note:
 Maximum timeframe for collection of “Outstation Cheques” drawn on State Capitals, Major cities, Other locations
are 7, 10, and 14 Days respectively.
 th
“Customer Day” in the bank is on 15 of every month and customers are allowed to meet the top officials of the bank
on this day in every month.
 When a Cheque is drawn on a bank, the bank is called the Payee
 ―Garnishee order‖ is issued by Judgment Creditor's Creditor
YOUR MENTOR
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(www.gcnayak.blogspot.in)
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“They alone live, who live for others.”― Swami Vivekananda

Chapter-VII
SEBI & STOCK MARKET
 Securities and Exchange Board of India (SEBI) was first established in the year 1988 as a non-statutory body for
regulating the securities market. It became an autonomous body in 1992 and more powers were given through an
ordinance. Since then it regulates the market through its independent powers.
 Objectives of SEBI:
 It was set up to meet the needs of three groups Issuers, Investors & Intermediaries.
 It tries to develop the securities market.
 To protect Investors Interest.
 Makes rules and regulations for the securities market.
 Functions Of SEBI:
 Regulates Capital Market
 Checks Trading of securities.
 Checks the malpractices in securities market.
 It enhances investor's knowledge on market by providing education.
 To regulate and develop a code of conduct for intermediaries such as brokers, underwriters, etc.
 To promote Research and Investigation
ASBA (Application Supported by Blocked Amount):
ASBA is a convenient process developed by the India's Stock Market Regulator SEBI to invest in IPOs & FPOs. This
facility ensures that the applicant's money remains in his/her bank account till the shares are allotted to him/her(i.e. only if
his/her application is selected for allotment after the basis of allotment is finalized, or the issue is withdrawn / failed) by
benefiting the applicant to earn interest on application money.
Primary & Secondary Market:
 Primary market: Primary market is the new issue market of equity shares of non-government public limited companies
and issue of public sector bonds.
 Secondary market: This refers to old or already issued securities. It is composed of industrial security market or stock
exchange market and gilt-edged market.
What is Primary Market?
The Primary market refers to the market where new securities are issued for the purpose of obtaining capital. Firms
and public or government institutions can raise funds from the primary market through making a new issue of stock (to obtain
equity financing) or bonds (to obtain debt financing). When a corporation is making a new issue, it is called an Initial Public
Offering (IPO), and the process is referred to as the ‗Underwriting‟ of the share issue. In the primary market, the securities are
issued by the company that wishes to obtain capital and is sold directly to the investor. In exchange for the funds that the
shareholder contributes, a certificate is issued to represent the interest held in the company.
What is Secondary Market?
The secondary market refers to the market where securities that have already been issued are traded. Instruments that
are usually traded on the secondary market include stocks, bonds, options and futures. Certain mortgage loans can also be sold
to investors on the secondary market. Once a security has been purchased for the first time by an investor on the primary
market, the same security can be sold to another investor in the secondary market, which may be at a higher or lower price
depending on the performance of the security during its period of trading. There are many secondary markets worldwide, and
famous few include the New York Stock Exchange (Index-(Dow Jones)DJ), The NASDAQ (Index-NASD-100), the London
Stock exchange (Index-FTSE-100), the Tokyo stock exchange (Index-Nikkei-225), the Korea stock exchange (Index-Kospi),
Singapore exchange (Index-STI), Hong kong stock exchange (Index-Hang Seng), France stock exchange (Index-CAC-40) and
the Shanghai Stock Exchange(Index-Composite Index).
Difference between Primary Market and Secondary Market:
 Primary and Secondary markets refer to markets which assist corporations obtain capital funding. The difference
between these two markets lies in the process that is used to collect funds.
 The Primary market refers to the market where new securities are issued by the company that wishes to obtain capital
and is sold directly to the investor
 The secondary market refers to the market where securities that have already been issued are traded. Instruments
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that are usually traded on the secondary market include stocks, bonds, options and futures.
 The main difference is that, in the primary market, the company is directly involved in the transaction, whereas in the
secondary market, the company has no involvement since the transactions occur between investors
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Indian Stock Exchange:
SENSEX (Sensitive Index) is the index of BSE (Bombay Stock Exchange) & Nifty is the index of NSE (National Stock
Exchange).
 BSE is oldest stock exchange in Asia located at Dalal Street in Mumbai

 Sensex calculated by taking top 30 companies into consideration out of the registered company.
 NSE is the largest stock exchange in India
 Nifty calculated by taking top 50 companies into consideration out of the registered company.
 NASDAQ ( National association of securities dealers Automated Quotation System)- NASD-100
 NASDAQ is the first electronic stock market in the world located in New York.
 NYSE ( New york Stock Exchange) - DJ ( Dow Jones)
 NYSE is world's first and largest stock market
IPO(Initial Public Offerings) & FPO(Follow on Public Offering):
An issuing of shares to investors by a public company that is already listed on an exchange is FPO. FPOs should not
be confused with IPOs, as IPOs are the initial public offering of equity to the public while FPOs are supplementary issues made
after a company has been established on an exchange. FPOs are popular methods for companies to raise additional equity
capital in the capital markets through a stock issue. Public companies can also take advantage of an FPO issuing an offer for
sale to investors, which are made through an offer document.
FDI(Foreign Direct Investment) & FII(Foreign Institutional Investment):
FDI FII
Investment that a parent country makes in a foreign Investment made by investor in the markets of a
country i.e. foreign country having stake in Indian foreign nation
company
FDI flows into primary market FII flows into secondary market
It is long term investment It is short term investment
More stable Less stable
It targets a specific enterprise It generally increases the capital availability
It can‘t enter & exit easily It can enter the stock market easily & also withdraw
from it easily
Note:
 The FII also known as HOT MONEY as the investors have the liberty to sell it & back.
 Foreign institutional investors play a very important role in any economy. These are the big companies such as
investment banks, mutual funds etc, who invest considerable amount of money in the Indian markets. With the
buying of securities by these big players, markets trend to move upward and vice-versa. They exert strong influence
on the total inflows coming into the economy.
 In FII, the companies only need to get registered in the stock exchange to make investments. But FDI is quite
different from it as they invest in a foreign nation.
 FDI is more preferred to the FII as they are considered to be the most beneficial kind of foreign investment for the
whole economy
 The Foreign Institutional Investor is also known as hot money as the investors have the liberty to sell it and take it
back. But in Foreign Direct Investment, this is not possible. In simple words, FII can enter the stock market easily and
also withdraw from it easily. But FDI cannot enter and exit that easily. This difference is what makes nations to
choose FDI‘s more than then FIIs.
FDI Limits:
Defence, Pension, Insurance, Civil Aviation 49%

Print Media 26%
Public sector bank 20%
Private sector bank 74%
Multi brand 51%
Single brand 100%
Railway infrastructure 100%
Tourism 100%
Telecom 100%
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Power exchange 49%

Asset reconstruction company 74%
Credit information company 74%
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Note:
 FDI flows into Indian market under two routes (1) Automatic Route (without prior approval of either Govt. or RBI). (2)
Government Route or Approval Route
 In Approval Route:
 Investment up to 5000Cr (Previously it was 3000Cr): is vested by FIPB& will forwarded to Finance ministry
for final approval.
 Investment > 5000Cr (Previously it was 3000Cr): is must cleared by CCEA functions under the
chairmanship of Prime Minister.
 FDI upto 49% in stock exchanges, depositories allowed under automatic route.
 FDI upto 100% in courier service allowed under automatic route
 FDI upto 49% in petroleum refining allowed under automatic route, from earlier approval route
 No decision taken on FDI cap in air ports, brown field pharma.
 FDI prohibited in India in both routes are Atomic energy, lottery business, gambling & batting, business of chit fund,
Nidhi company, agriculture, housing & real estate business, trading in Transferable development rights (TDRs),
Manufacture of tobacco substitutes etc.
FMC(Forward Market Commission):

The Forward Markets Commission (FMC) is the chief regulator of Commodity futures markets in India. It is
headquartered in Mumbai and this financial regulatory agency is overseen by the Ministry of Finance. The Commission allows
commodity trading in 22 exchanges in India, of which 6 are national.
MCA (Ministry of Corporate Affairs):
It is an Indian government ministry. It is charged with administering the The Companies Act, 2013 and other acts
related to Indian private sector. It is responsible mainly for regulation of Indian enterprises in Industrial and Services sector. The
current Minister of corporate affairs is Arun Jaitley.
Venture Capital/Risk Capital:
Venture capital means ―Risk Capital‖. It refers to capital investment both equity& debt, which carries substantial risk &
uncertainties. The risk envisaged may be very high, may be so high as to result in total loss or very loss so as to result in high
gain. The objective of venture capital companies is to give commercial support to new ideas & for the introduction & adaptation
of new technologies.
Share Splitting:
A share split of 1:10 means one equity share will be split into 10 shares. This stands for reducing the face value of
equity shares from Rs.10 per share to Rs.1 per share & to increase number of issued share in proportion thereof. The
stock/share split is expected to increase investor participation in the stock.
Enforcement Directorate:
It is a law enforcement agency & economic intelligence agency responsible for enforcing economic laws & fighting
economic crime in India. It is a part of department of revenue, Ministry of Finance. It
 Investigate Provisions of FEMA, 1999.
 Monitor Prevention of Money Laundering Act, 2002
Separate Trading Of Registered Interest & Principal Securities(STRIPS):
Long term notes & bonds divided into principal & interest paying components, which may be transferred & sold in
amounts as small as $1000. STRIPS are sold at auctions at a minimum per amount, varying for each issue. The amount is an
arithmetic function of the issues interest rate.
FOREIGN INVESTMENTS – FDI, FPI & FI:
For a developing country like India, the total capital requirements cannot be met with internal sources alone, so foreign
investments become an important part in supplying capital. The two most common foreign investments are FDI and FPI.
FOREIGN DIRECT INVESTMENT (FDI)

Foreign Direct Investment (FDI) as the name suggests is investing directly in another country. A foreign company which
is based in some other country like France invests in India either by setting up a wholly owned subsidiary or getting into a joint
venture with some company based in India and then conducts its business in India.
Examples: Various software companies like IBM India which is initially based in Unites States but has opened its subsidiaries in
different part of India, Maruti Suzuki is yet another example in which Suzuki of Japan had joint ventured with Maruti Udyog Ltd.
SBI life insurance is a joint venture life insurance company between State Bank of India (SBI) and BNP Paribas Assurance of
France and there are many other examples.
FOREIGN PORTFOLIO INVESTMENT (FPI)

Foreign Portfolio Investment (FPI) is similar to FDI in a way that this is also direct investment but investment in only
financial assets such as stocks, bonds etc. of a company located in another country. In contrast to FDI, a portfolio investment is
an investment made by an investor who is not involved in the management and day-to-day business of a company.
Example: Any foreign company invests in the shares of Infosys (based in India).
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Note:
• Investment less than 10% –FPIs
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• Investment greater than 10% — FDIs
FOREIGN INSTITUTIONAL INVESTOR (FII)
Foreign Institutional Investor (FII) is an investor or group of investors who bring FPIs. Institutional investors include
hedge funds, insurance companies, pension funds and mutual funds. They participate in the secondary market of economy. To
participate in the market of India, FIIs must register themselves with Securities and Exchange Board of India (SEBI).FIIs need
account on stock market to invest in india.
OUTWARD DIRECT INVESTMENT (ODI):

A business strategy where a domestic firm expands its operations to a foreign country either via a Green field
investment, merger/acquisition and/or expansion of an existing foreign facility. Employing outward direct investment is a natural
progression for firms as better business opportunities will be available in foreign countries when domestic markets become too
saturated
QUALIFIED FOREIGN INSTITUTIONAL INVESTOR (QFII):

A program that permits certain licensed international investors to participate in india stock exchanges.Prior to QFII,
foreign investors were not able to buy or sell shares on india stock exchanges because of india‘s tight capital controls. With the
launch of the QFII program, licensed investors can buy and sell RUPPEE-denominated ―A‖ shares. Foreign access to these
shares is limited by specified quotas that determine the amount of money that the licensed foreign investors are permitted to
invest in india‘s capital markets.
Out of FDI and FPI, FDI is most important for any economy because it is a type of permanent investment in the economy. Like
IBM India has its branches in India, it cannot easily shut its business from India because it has set up a whole infrastructure in
India, IBM will itself go into great losses. Also setting up subsidiaries give employment to people of India. While in FPI, the
investors can exit a nation easily whenever they want.
FISCAL RESPONSIBILITY AND BUDGET MANAGEMENT (FRBM) ACT-2003:

The Fiscal Responsibility and Budget Management (FRBM) Act was legislated by the Parliament in the year 2003.
Its objectives:
 To institutionalise fiscal discipline;
 To Reduce Fiscal Deficit;
 To Improve Macroeconomic Management.
 The law aims at promoting Fiscal Stability for the country on a long-term basis.
 It emphasises a Transparent Fiscal Management System and a more equitable distribution of debts over the years.
 This law also gives flexibility tothe Reserve Bank of India to undertake monetary policy to tackle inflation and take
corrective measures in order to give an impetus to the economic environment.
FINANCIAL INCLUSION & ITS IMPORTANCE IN INDIA
FINANCIAL inclusion is the delivery of FINANCIAL services at affordable costs to vast sections of disadvantaged and
low income groups.
Why FINANCIAL Inclusion in India is Important?
 Creating a platform for inculcating the habit to save MONEY
 Providing formal credit avenues
 Plug gaps and leaks in public subsidies and welfare programmes
What are the steps taken by RBI & Govt. to support FINANCIAL inclusion?
 Initiation of no-frills account or BSBDA

 Banking service reaches homes through business correspondents
 EBT (Electronic Benefits Transfer)
 PMJDY (Pradhan Mantri Jan Dhan Yojna)
 GMS (Gold monetization scheme)
 MUDRA (Micro Units Development & Refinance Agency)
 DBT (Direct Benefit Transfer)
Note-: “Red Herring prospectus” is a term associated with IPOs. It is a document submitted by a company as a part of IPO
of securities (shares/ bonds).
35
“The mind is everything. What you think you become” –Buddha

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Chapter-VIII
BANKING SECTOR REFORM
CAMELS Rating:
It is the approach to measure soundness of Indian banking System. It stands for
 C-Capital Adequacy
 A-Asset Quality
 M-Management Quality
 E-Earning Quality
 L-Liquidity
 S-Sensitivity.
What is BIS?
 The BIS (Bank For International Settlement established in 1930) is an international financial organization which
prescribes prudential norms for central banks of its member countries.
 The head quarter of BIS is in BASEL, Switzerland &its two representative offices are in Hong Kong & Mexico.
 The main objective of BIS is to help central banks of different nations in achieving their monetary and financial
stability in order to foster international co-operation.
 BIS acts as a Bank for central banks of different nations.
What is BASEL?
 Basel is a city in Switzerland, where HQ of BIS is situated.
 Historically, in 1973, the sudden failure of the Bretton Woods System resulted in the occurrence of casualties in 1974
such as withdrawal of banking license of Bankhaus Herstatt in Germany, and shut down of Franklin National Bank in
New York. In 1975, three months after the closing of Franklin National Bank and other similar disruptions, the central
bank governors of the G-10countries took the initiative to establish a committee on Banking Regulations and
Supervisory Practices in order to address such issues. This committee was later renamed as Basel Committee on
Banking Supervision (BCBS).
 Basel Committee which is appointed by BIS formulates rules and regulations for effective supervision of the central
banks. The Basel Committee named as Basel Committee on Banking Supervision (BCBS). BCBS established by
central banks of G10 Countries in1974.
 The rules & regulations issued by this committee is called as Basel Accord or Basel Norms. These norms are Basel-
I, Basel-II & Basel-III. These norms are thermometer of banks health.
 The purpose of Basel Norm is to ensure financial institutions have enough capital to meet obligations & absorb
unexpected losses i.e. how much capital banks need to put aside to guard against the types of financial and
operational risks banks face.
What is CAR or CRAR?
 CAR-Capital Adequacy Ratio & CRAR- Capital to Risk Weighted Asset Ratio.
Risk weighted Assets(RWA) % age of Risk Total amount Loaned

Home Loan 30% 20 Cr.
Commercial Loan 60% 30 Cr.
Govt. Securities (G-Secs) 10% 50 Cr.
Total RWA 100% 100 Cr.
CAR =
 To sustain loan business, a bank needs to have sufficient capital under Basel norm. Ex. If a bank has total RWA worth
100 Cr., then it need to have total capital adequacy of 9 Cr.(I.e. CAR = 9% of RWA) {7 Cr. Tier-I & 2 Cr. Tier-II Capital}.
9 Cr. Total Capital Adequacies
7Cr. Tier-I
36
2 Cr. Tier-II
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RWA 100 Cr.
 Basel CAR = 9% of RWA = 7% of RWA in Tier-I + 2% of RWA in Tier-II.
BANK CAPITAL/CAPITAL FUND
Tier-I Capital Tier-II Capital

Permanent or Main Capital or Core Capital (It Supplementary or Additional Capital (It includes,
consists of elements that are more permanent in revaluation reserves, general provisions and
nature and as a result, have high capacity to absorb provisions against non-performing assets, hybrid
losses) debt capital instruments, and subordinated term
debt)
Paid up or Equity capital (Equity/Common & Debts (Bonds)
Preference share) & Disclosed reserves (it include
post-tax retained earnings)
Highly liquidity assets like gold, G-Secs.(statutory Hybrid instruments (Optionally fully convertible
reserves) debentures)
IPDI-Innovative perpetual debt instruments Revaluation reserves
PNCPS-Perpetual non-cumulative preference Long term unsecured loans(NPAs)
shares
 If a bank want to loan 100 cr. In RWA then it must have 9 cr. As total capital adequacy, if not then they need to raise
money by borrowing via debt or equity shares or by Govt. Infusion (only for PSBs).
 RBI has sufficient back-up mechanism to prevent banking crisis in India (i.e. SLR & CRR all banks required to report to
RBI fortnightly), but ‗one shoes doesn‘t fit all‘ because American banks were so prudent in their functioning but still run
into crisis in 2008(Bankruptcy of Lehman Brothers).
Basel Accords:
Basel-I Accord:
 In 1988, the BCBS introduced a capital framework called Basel-I Accord.
 Basel-I focused almost entirely on Credit Risk.
 Basel-I norm comprised of four pillars, namely Constituents of Capital (Tier I and Tier II capital), Risk Weighting
(weights to different categories of bank‘s assets i.e. loans on the basis of relative riskiness), Target Standard Ratio (A
universal standard, wherein Tier I and Tier II capital should cover at least 8 percent of risk weighted assets of a bank,
with at least 4 percent being covered by Tier I capital), and Transitional and implementing arrangements
(Transitional and implementing arrangement sets different stages of implementation of the norms in a phased manner).
 The minimum capital requirement (Capital adequacy) was fixed at 8% of RWA (Risk Weighted Assets) or less.
Basel-II Accord:
 The revised capital framework issued by BCBS in June 2004 is called Basel-II Accord.
 Basel-II has 3 Pillars namely Minimum Capital requirements, Supervisory Review & Market Discipline.
 Minimum capital requirement was at 8% of RWA. Supervisory review by respective central banks. Market discipline is
based on enhanced disclosure of risks to central bank & how much vulnerable the bank to changing market &
economic condition.
 Minimum reserves requirement = 0.08 * Risk-Weighted Assets + Operational Risk Reserves + Market Risk
Reserves.
Basel-III Accord:
 The collapse of Lehman brothers, USA in September 2008 (due to subprime crisis i.e. lending money to subprime
borrower or high risk borrowers) leads to strengthening of the Basel-II framework.
 In 2010 a new revised framework released by BCBS called Basel-III Accord
 The focus of Basel-III was to foster greater resilience at the bank level in order to reduce the risk.
 The essence of Basel III revolves around two sets of compliance:
i. Capital
ii. Liquidity
While good quality of capital will ensure stable long term sustenance, compliance with liquidity covers will increase
ability to withstand short term economic and financial stress.
 Minimum Capital requirement changes to 9% of RWA & some other regulations issued to strengthen banking system.
Note: Basel-II consists of Tier-I & Tier-II capital whereas Basel-III consists of Core Capital
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India and Basel Norms: Presently Indian banking system follows Basel-II norms. The Reserve Bank of India has extended the
timeline for full implementation of the Basel III capital regulations by a year to March 31, 2019.This will also align full
implementation of Basel III in India closer to the internationally agreed date of January 1, 2019.
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Types of Banking:
 Universal Banking: Financial institutions (FIs) & banks are allowed to undertake all kinds of activity of banking i.e. they
provide all financial products under one roof.
 Narrow Banking: The narrow banking is very much antonym to the universal banking. Here the bank places its funds
under the risk free assets, such as Govt. securities & the maturity of the liabilities match the assets & there is no
possibility of asset liability mismatch. Narrow banking helps the banks to reduce NPA.
 Unit Banking refers to a bank that is a single, usually small bank that provides financial services to its local community.
A unit bank is independent and does not have any connecting banks branches in other areas. It is prevalent in USA.
 Branch banking refers to a bank that is connected to one or more other banks in an area or outside of it; to its
customers, this bank provides all the usual financial services but is backed and ultimately controlled by a larger financial
institution.
 Brick and Mortar Banking refers to traditional system of banking done only in a fixed branch premises made of brick and
mortar. Now there are banking channels like ATM, Internet Banking, tele banking etc.
 Kiosk Banking: It is a self-service solutions, allowing customers to service themselves with computer based on
touchscreen and making different sort of transactions.
 Virtual banking is also called internet banking, through which financial and banking services are accessed via internet's
World Wide Web. It is called virtual banking because an internet bank has no boundaries of brick and mortar and it exists
only on the internet.
 An Ethical bank, also known as a social, alternative, civic, or sustainable bank, is a bank concerned with the social and
environmental impacts of its investments and loans.
 Shadow Banking: It means bank like functions performed by non-bank financial entities on entities outside the
banking system. E.g. NBFCs.
 Para Banking: Para Banking includes all the services provided by banks apart from day to day banking. For example: -
Debit cards, Credit cards, Life Insurance products, Cash Management services etc.
 The sale of insurance and other similar products through a bank is called Bancassurance. This can help the
consumer in some situations; for example, when a bank requires life insurance for those receiving a mortgage loan the
consumer could purchase the insurance directly from the bank.
 Social Banking: Banks are now no longer solely concentrated on earning profits but also interested in aiding society as a
whole. This new element often focuses on the environment, charity, poverty and education but there can be a large
number of topics and subtopics. This is known as social banking.
 Private Banking: Banking services offered to high net-worth individuals. Private banking institution assists the high net-
worth individual in investing his/her money in exchange for commissions and fees. The term "private" refers to the customer
service being rendered on a more personal basis.
 Islamic Banking: An Islamic bank is a deposit taking banking institution whose scope of activities includes all currently
known banking activities, excluding borrowing and lending on the basis of interest.it can also accept demand deposits which
are treated as interest free loans from clients to the bank and which are guaranteed. An Islamic bank shares its net
earnings with depositors. Depositors are required to be informed beforehand of the formula used for sharing the net
earnings with the bank.
 Green Banking: Financing to environmental friendly projects by bank is called so.
 Offshore Banking: Bank which accepts currencies of all countries. These are heaven bank countries e.g. Swiss Bank.
 Overseas Banking: Banks having branch abroad.
RETAIL BANKING WHOLESALE BANKING

Here commercial banks directly deals with It is the services offered by merchant bank to other banks
customers(Assets & Liabilities) & financial institutions.(Large corporate clients, real estate
developers)
In retail banking services offered like savings account, In wholesale banking ―term lending‖ is a non-fund based
debit card, credit card, personal loans, mortgages, CDs. services`. Wholesale banking is also called
Corporate/commercial banking.
CSR (Corporate Social Responsibility):
Under CSR companies have to spend 2% of their profit for social improvement and social uplifting. CSR is generally
understood as being the way through which a company achieves a balance of economic, environmental and social imperatives
(―Triple-Bottom-Line- Approach‖), while at the same time addressing the expectations of shareholders and stakeholders.
Bitcoin:
Bitcoin is a consensus network that enables a new payment system and is completely digital money. It is the first
decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen. From a user
perspective, Bit coinis pretty much like cash for the Internet. Bitcoin can also be seen as the most prominent triple entry
38
bookkeeping system in existence. Bitcoin is a Crypto-currency & can be traded digitally.
“Winners don’t do different things. They do things differently”

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Chapter-IX
MSME (MICRO SMALL MEDIUM ENTERPRISES)
The Government of India has enacted the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 in
terms of which the definition of micro, small and medium enterprises is as under:
 Enterprises engaged in the Manufacturing or Production, processing or preservation of goods as specified below:
 A micro enterprise is an enterprise where investment in plant and machinery does not exceed Rs. 25 lakh;
 A small enterprise is an enterprise where the investment in plant and machinery is more than Rs. 25 lakh but
does not exceed Rs. 5 crore; and
 A medium enterprise is an enterprise where the investment in plant and machinery is more than Rs.5 crore
but does not exceed Rs.10 crore.
 Enterprises engaged in Providing or Rendering Services(Like Banks & Insurance Companies) and whose
investment in equipment (original cost excluding land and building and furniture, fittings and other items not directly
related to the service rendered or as may be notified under the MSMED Act, 2006 are specified below.
 A micro enterprise is an enterprise where the investment in equipment does not exceed Rs. 10 lakh;
 A small enterprise is an enterprise where the investment in equipment is more than Rs.10 lakh but does not
exceed Rs. 2 crore; and
 A medium enterprise is an enterprise where the investment in equipment is more than Rs. 2 crore but does
not exceed Rs. 5 crore.
MSME Table Enterprises engaged in Enterprises engaged in

Manufacturing or providing or rendering
Production Services
MICRO Asset Size < 25 Lakh Asset Size < 10 Lakh
SMALL 25 Lakh < Asset Size < 5 Crore 10 Lakh < Asset Size < 2 Crore
MEDIUM 5 Crore < Asset Size < 10 Crore 2 Crore < Asset Size < 5 Crore
Mutual Fund
 It is an investment vehicle that is made up of funds collected from many small investors (Pool of Money) for the
purpose of re-investing in various securities such as Share, Bonds & Money market instruments.
 Its main motto is to earn profit & the profit will be distributed among the large number of small investor to achieve
certain financial goals.
st
 UTI Mutual fund is the 1 Mutual fund in India.
Hedge Fund
 A group of investors who take financial risk together into a single investment for the purpose of reducing risk is called
Hedging & the fund invested by them is called Hedge Fund.
Consortium & Loan Syndication
 Both Loan Syndication and Consortium finance comes into picture when a client needs a huge loan which a
single Bank either cannot provide or cannot take risk to provide. In both the cases several banks (or financial
institutions) finance a single borrower.
 In Loan Syndication, the client deals with one Bank only & that bank approaches other banks to finance the
borrower
 In consortium loan borrower has to arrange the finance himself from different bank, this finance on different term
and at different pricing.
Ponzi scheme
It is a fraudulent investment operation where the operator, an individual or organization pays returns to its investors
from new capital paid to the operators by new investors, rather than from profit earned by the operator. Operators of Ponzi
schemes usually entice new investors by offering higher returns than other investment.
KYC (Know Your Customer)

The Reserve Bank of India (RBI) has advised banks to follow „KYC guidelines‟, wherein certain personal information of
the account-opening prospect or the customer is obtained. The objective of doing so is to enable the Bank to have positive
identification of its customers. This is also in the interest of customers to safeguard their hard earned money. The KYC
guidelines of RBI mandate banks to collect three proofs from their customers. They are-
 Photograph
 Proof of identity
 Proof of address
39
(OVD (Officially Valid Document) - Voter ID, PAN Card, Driving License, Passport, AADHAR Card & MNAREGA Card)
Page
Chapter-X
INDIAN ECONOMY
Economic Growth:
Economic growth is an increase in the production and consumption of goods and services. It entails increasing
population and/or per capita consumption. It is indicated by increasing gross domestic product (GDP).
GDP(Gross Domestic Product):
The Gross Domestic Product or GDP is a measure of all of the services and goods produced in a country over a
specific period; classically a year.(OR) An estimated value of the total worth of a country‘s production and services, within its
boundary, by its nationals and foreigners, calculated over the course on one year. GDP = consumption + investment +
(government spending) + (exports - imports). Total value of products & Services produced within the territorial boundary of a
country.
GNP(Gross National Product):
Gross National Product (GNP) is measured as GDP plus income of residents from investments made abroad minus
income earned by foreigners in domestic market. An estimated value of the total worth of production and services, by citizens of
a country, on its land or on foreign land, calculated over the course on one year. GNP = GDP + NR (Net income inflow from
assets abroad or Net Income Receipts) - NP (Net payment outflow to foreign assets). Total value of Goods and Services
produced by all nationals of a country (whether within or outside the country).
Note: For a closed economy GDP=GNP because there is no net income earned abroad.
Recession: A true economic recession can only be confirmed if GDP (Gross Domestic Product) growth is negative for a period
of two or more consecutive quarters.
Per capita Income:

Per capita income, also known as income per person, is the mean income of the people in an economic unit such
as a country or city. It is calculated by taking a measure of all sources of income in the aggregate (such as GDP or Gross
national income) and dividing it by the total population
CAD (Current Account Deficit:

It is the difference between the imports and exports of a nation in one financial year.
Fiscal Deficit:
It is the difference between the government‟s total Revenue or Receipts (excluding borrowings) and total
Expenditure.
Revenue deficit:
It defines that, where the net amount received (by taxes & other forms) fails to meet the predicted net amount to be
received by the government.
BPS(Basis Points):
BPS Stands for ―Basis points‖. It is used to indicate change in the rate of interest and other financial instrument. 1 bps
= 0.01 %.
Balance of Payments (BOP):

A list of all of a country‟s international transactions for a given time period, usually one year is called balance of
payment. Payments into the country (receipts) are entered as positive numbers, called credits; Payments out of the country
(payments) are entered as negative numbers called debits. These transactions are divided into two broad groups
1) Current Account-it is made up of Visible Trade (i.e. merchandise exports & imports) & invisible trade (i.e.
income & expenditure for services such as banking, insurance, tourism & shipping).
2) Capital Account-it is made up of such items as the inward & outward flow of money for investment &
international grants & loans.
Balance of Trade (BOT):

The value of a country‘s exports minus the value of its imports is called balance of trade. Unless specified as the
balance of merchandise trade, it normally incorporates trade in services, including earnings (interest, dividends, etc.) on financial
assets.
Balanced Trade: When a balance of trade equal to zero. (Exports – imports = 0)
INFLATION & HOW IT IS MEASURED IN INDIA:

40
Inflation means increase in the price of goods & services. It happens when there are fewer goods & more buyers,
resulting in higher price since there is more demand & less supply. Contrary to its negative effects, a moderate level of inflation
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characterizes a good economy. An inflation rate of 2 or 3% is beneficial for an economy as it encourages people to buy more
and borrow more, because during times of lower inflation, the level of interest rate also remains low. Hence the government as
well as the central bank always strives to achieve a limited level of inflation.
To measure inflation there are so many methods like WPI (wholesale price index), CPI(consumer price index),
PPI(producer price index), COLI(cost of living index).Many developing countries use changes in the Consumer Price Index (CPI)
as their central measure of inflation. India uses WPI as the measure for inflation but now (from April 2014) on the basis of
Urjit Patel Committee recommendations, new CPI (combined) is declared as the new standard for measuring inflation.
Types of Inflation:
 Deflation: It occurs when the general level of prices is falling. This is the opposite of inflation.
 Creeping Inflation: It is a circumstance where the inflation of a nation increases gradually, but continually over time.
 Skewflation: It refers to inflation in some commodities & deflation in others.
 Hyperinflation: Unusually rapid inflation. In extreme cases, this can lead to the breakdown of a nation's monetary system.
One of the most notable examples of hyperinflation occurred in Germany in 1923, when prices rose 2,500% in one month.
 Stagflation: It is the combination of high unemployment and economic stagnation with inflation. This happened in
industrialized countries during the 1970s, when a bad economy was combined with OPEC raising oil prices. In recent years,
most developed countries have attempted to sustain an inflation rate of 2-3%.
 Recession: A period of general economic decline; typically defined as a decline in GDP for two or more consecutive
quarters. A recession is typically accompanied by a drop in the stock market, an increase in unemployment, and a decline
in the housing market. A recession is generally considered less severe than a depression, and if a recession continues long
enough it is often then classified as a depression.
 Depression: A depression is a severe economic catastrophe in which real gross domestic product (GDP) falls by at least
10%. A depression is much more severe than a recession and the effects of a depression can last for years. It is known to
cause calamities in banking, trade and manufacturing, as well as falling prices, very tight credit, low investment, rising
bankruptcies and high unemployment.
 Disflation: It is defined as the periods of slow inflation.
 Reflation: It is the act of stimulating the economy by increasing the money supply or by reducing taxes. It is opposite of
disflation.
 Agflation: Increase in price of food or agricultural product.
 PHILLIPS CURVE: It is a historical inverse relationship between the rate of unemployment & the rate of inflation. The lower
the unemployment in the economy, the higher the rate of inflation.
Causes of Inflation:
 Cost-push Inflation: It basically means that prices have been "pushed up" or increased by increases in costs of any of the
four factors of production (labor, capital, land or entrepreneurship). Aggregate supply is the total volume of goods and
services produced by an economy at a given price level.)When there is a decrease in the aggregate supply of goods and
services due to an increase in the cost of production, we have cost-push inflation. As a result, the increased costs are
passed on to consumers, causing a rise in the general price level (inflation).
 Demand-pull Inflation: A situation where the demand for goods and services rises faster than the supply of goods and
services. This excess demand increases the prices of the goods and services hence creating inflation. Can be simply said
as ― Too much money chasing too few goods ‖.Some factors that cause this demand pull inflations are excessive foreign
investment, expansionary fiscal policy e.g. increase in government expenditure), expansionary monetary policy ( e.g.
Increase in money supply), easy access to credit, deficit financing and others.
Important measures to control Inflation:
 Fiscal Policy: Reducing Fiscal Deficit

 Monetary Policy: Tightening Credit
 Supply Management through Imports
 Incomes Policy: Freezing Wages.
WPI(Wholesale Price Index):
 This is published by Office of Economic advisor, Ministry of commerce & Industry

 The WPI (Base year 1993-94) is usually considered as headline inflation indicator in India.
 The current series of WPI has 2004-05 as the base year. From Jan-2015 the new base year 2011-12 will be used
for India‟s GDP & WPI calculation as per National statistical commission announcement.
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 The general public does not buy at the wholesale level', thus WPI does not give the actual feeling of the amount of
pressure borne by the general public. However, the increase in wholesale prices does affect the retail prices and as
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such give some feel of the consumer prices.
CPI(Consumer Price Index):
 The CPI measures price change from the perspective of the retail buyer. It is the real index for the common people. It
reflects the actual inflation that is borne by the individual.
 CPI is designed to measure changes over time in the level of retail prices of selected goods and services on which
consumers of a defined group spend their incomes.
 The new CPI series is based with the Base year 2010, w.e.f. from Feb-2012.
Note: Increase or decrease in general price level is measured against price level of some reference year called Base year.
Inflation is expressed as percentage increase in the general price level with reference to base year of the given basket of
commodities.
Inflation = Current prices-base year prices * 100
Direct & Indirect Tax:
 Direct tax: It is a tax which is paid directly by someone to taxing authority. Income tax and property tax are examples of
direct tax. They are not shifted to somebody else.
 Indirect Tax: This type of tax is not paid by someone to the authorities and it is actually passed on to the other in the
form of increased cost. They are levied on goods and services produced or purchased. Excise Tax, Sales Tax, Vat,
Entertainment tax are indirect taxes.
Shortcut to Remember Tax:
Direct Tax (Short cut-WePro.Co.In) Indirect Tax (Short cut-ExCuSe ME)

We-Wealth Tax Ex-Excise tax
Pro-Property tax Cu-Custom tax
Co-Corporate tax Se-Service tax
Co-Corporate tax M-Market tax/VAT/(GST replaces VAT)
In-Income tax E-Entertainment tax
OLTAS (On-line Tax Accounting System):
It is a system introduced in April, 2004 for collection, accounting and reporting of the receipts and payments of Direct
Taxes on-line through a network of bank branches. The tax payers‘ data flow from banks directly to Tax Information Network
(TIN) maintained by National Securities Depository Ltd (NSDL).
Special Economic Zone (SEZ):
A SEZ is a geographical region that economic laws, which are more liberal than usual economic laws in the country. It
is a part of Governments Policies in India. The basic motto behind this is to
 Increase foreign investment
 Development of infrastructure
 Job opportunities
 Increase the income level of people
Do You Know?
 The Reserve Bank of India (RBI) on Feb 3, 2015 in its monetary policy review enhanced the limit under
Liberalized Remittance Scheme (LRS) to $250,000 per person per year.
 Maximum limit of high denomination note (Rs. 500 & 1000) can be taken to Nepal is Rs. 25,000/-
 Maximum 12 remittances per year & Maximum Rs. 50,000 per transaction under NEFT are
allowed to Nepal under “Indo Nepal Remittances Facility Scheme”
“I See, I Ignore. I Read, I Forget. I Write, I Learn. I Practice, I became the Master”
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Chapter-XI
MISCELLANEOUS
FINANCIAL INSTITUTIONS & THEIR REGULATORS
FINANCIAL INSTITUTION REGULATORS

Regional Rural Banks(RRBs) NABARD(National Bank for Agriculture & Rural
Development)
Chit Funds Respective state Government
Insurance Sector IRDA(Insurance Regulatory & Development Authority of
India)
Housing Finance NHB(National Housing Board)
National Housing Bank, RESIDEX, New Delhi RBI(Reserve Bank of India)‘s subsidiary
Venture Capital Fund SEBI(Security Exchange Board of India)
Mutual Fund SEBI(Security Exchange Board of India)
Merchant Banking SEBI(Security Exchange Board of India)
Stock Broking SEBI(Security Exchange Board of India)
Nidhi Companies Ministry of corporate affairs, Govt. Of India
Commodity Market& Index Futures Market FMC(Forward Market Commission)
Pension Sector PFRDA(Pension Fund Regulatory & Development
Authority)
NBFC(Non-Banking Financial Companies) RBI(Reserve Bank of India)
CRA(Credit Rating Agencies) SEBI(Security Exchange Board of India)
Warehouses Warehousing Development and Regulatory Authority
Power Sector Central Electricity Regulatory Commission
Telecommunication Industry TRAI(Telecom Regulatory Authority of India)
Financial Audit and Accounting professions ICAI(Institute of Chartered Accountants of India)
Financial System and Monetary Policy RBI(Reserve Bank of India)
Money Market RBI(Reserve Bank of India)
Capital Market(Both Primary & Secondary Market) SEBI(Security Exchange Board of India)
ORGANIZATIONS & REPORTS:

ORGANIZATION REPORT
National sample survey organization (NSSO) Collect & publish financial data
World bank World business/development report
UNCTAD World investment report
IMF World economic outlook
UNDP Human development report
UNDP Gender inequality report
WEF(World economic forum) Global competitiveness index
WEF Gender gap index
Transparency international Global corruption index
International food policy research institute Global hunger index
Institute of economics & peace Global peace index
 Balance Sheet:
A financial statement that summarizes a company's assets, liabilities and shareholders' equity at a specific point in time
is called a Balance Sheet. These three balance sheet segments give investors an idea as to what the company owns and owes,
as well as the amount invested by the shareholders.
Assets = Liabilities + Shareholders' Equity
 NAV (Net Asset Value):
Net asset value (NAV) represents a fund's per share market value. This is the difference between price at which
investors buy ("Bid price") fund shares from a fund company and sell them ("Redemption price") to a fund company. It is derived
by dividing the total value of all the cash and securities in a fund's portfolio, less any liabilities, by the number of shares
outstanding. A NAV computation is undertaken once at the end of each trading day based on the closing market prices of the
portfolio's securities.
NAV = (Value of Assets-Value of Liabilities)/number of units outstanding
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 Deficit Financing:
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 The method used by a government to finance its budget deficit, that is, to cover the difference between its tax
receipts and its expenditures. The main choices are to issue bonds or to print money.
 Planned expenditure by a government to put more money into the economy than it takes out by taxation, with the
expectation that increased business activity will bring enough additional revenue to cover the shortfall is also called
Deficit spending.
 Deficit financing helps to a certain extent only and beyond that it may cause havoc. It may Leads to temporary
Inflation.
 Zero Based Budgeting (ZBB):
It is a method of budgeting in which all expenses must be justified for each new period. Zero-based budgeting
starts from a "zero base" and every function within an organization is analyzed for its needs and costs. Budgets are then built
around what is needed for the upcoming period, regardless of whether the budget is higher or lower than the previous one.
ZBB allows top-level strategic goals to be implemented into the budgeting process by tying them to specific functional
areas of the organization, where costs can be first grouped, then measured against previous results and current expectations.
Advantages of ZBB:
 Efficient allocation of resources, as it is based on needs and benefits rather than history.
 Drives managers to find cost effective ways to improve operations.
 Detects inflated budgets.
 Increases staff motivation by providing greater initiative and responsibility in decision-making.
 Increases communication and coordination within the organization.
 Identifies and eliminates wasteful and obsolete operations.
 Identifies opportunities for outsourcing.
 Forces cost centers to identify their mission and their relationship to overall goals.
 Zero based budgeting helps in identifying areas of wasteful expenditure, and if desired, can also be used for
suggesting alternative courses of action.
Disadvantages of ZBB:
 More time-consuming than incremental budgeting.
 Justifying every line item can be problematic for departments with intangible outputs.
 Requires specific training, due to increased complexity vs. incremental budgeting.
 In a large organization, the amount of information backing up the budgeting process may be overwhelming.
 Tapering:
A gradual winding down of central bank activities used to improve the conditions for economic growth. Tapering
activities is primarily aimed at interest rates and investor expectations of what those rates will be in the future. These can include
conventional central bank activities, such as adjusting the discount rate or reserve requirements, or more unconventional ones,
such as quantitative easing (QE).
 LIBOR:
LIBOR (London Interbank Offered Rate) or ICE LIBOR (Inter-Continental Exchange London Interbank Offered Rate)
(previously BBA LIBOR) is a benchmark rate that some of the world‘s leading banks charge each other for short-term loans. It
serves as the first step to calculating interest rates on various loans throughout the world. LIBOR is administered by the ICE
Benchmark Administration (IBA), and is based on five currencies: U.S. dollar (USD), Euro (EUR), pound sterling (GBP),
Japanese yen (JPY) and Swiss franc (CHF), and serves seven different maturities: overnight, one week, and 1, 2, 3, 6 and 12
months. There are a total of 35 different LIBOR rates each business day. The most commonly quoted rate is the three-month
U.S. dollar rate.
 Differences between Fiscal Policy and Monetary Policy:
 Monetary policy involves changing the interest rate and influencing the money supply.
 Fiscal policy involves the government changing tax rates and levels of government spending to influence aggregate
demand in the economy.
They are both used to pursue policies of higher Economic growth or Controlling Inflation.
 Monetary Policy:
Monetary policy is usually carried out by the Central Bank / Monetary authorities and involves: Setting base interest
rates (e.g. RBI, Bank of England in UK and Federal Reserve in US) influencing the supply of money. E.g. Policy of quantitative
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easing to increase the supply of money.

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The Central Bank may have an inflation target of 2%. If they feel inflation is going to go above the inflation target, due
to economic growth being too quick, then they will increase interest rates. Higher interest rates increase borrowing costs and
reduce consumer spending and investment, leading to lower aggregate demand and lower inflation. If the economy went into
recession, the Central Bank would cut interest rates.
 Fiscal Policy:
Fiscal Policy is carried out by the government and involves changing:
 Level of government spending
 Levels of taxation
 To increase demand and economic growth, the government will cut tax and increase spending (leading to a
higher budget deficit)
 To reduce demand and reduce inflation, the government can increase tax rates and cut spending (leading to a
smaller budget deficit)
 Education Loan& Home Loan limits in India:
 For Education Loan: The quantum of finance under the scheme is capped at Rs 10.00 lacs for studies in India and
Rs 20.00 lacs for studies abroad, which would cover tuition fees, hostel charges (if any), cost of books, etc. The
minimum amount of education loan would be Rs 50,000.Moratorium-Course period + 1 year or 6 months after getting
JOB (whichever is earlier)
 For Home Loan: Loans to individuals up to 25 lakh in metropolitan Centre‘s with population above ten lakh and 15
lakh in other center‘s for purchase/construction of a dwelling unit per family excluding loans sanctioned to bank‘s own
employees.
 Difference among Public sector Banks (PSB), Private sector Banks& Nationalized Bank:
 A PSB is one that is owned by the government of the country (Govt. has more than 50 percent stake). Since the people
decide who the government is, they are also referred to as Public sector banks (PSBs). The government is responsible
for the money deposited into the accounts of these banks.
 Whereas a private sector bank is one that is owned by an independent individual or a company that is controlled by a
few individuals. In short, the bank is owned by someone else and they run the bank. The person owning/running the
bank is responsible for the money deposited into the accounts of these banks.
 Nationalization of bank is a process not a status. Nationalization of bank occurs in two phases one in 1969(14
banks)& another in 1980(6 banks), so total 20 banks. In 1990 due to merge of New bank of India with PNB the no. of
nationalized bank reduced to 19.
Note:- All Nationalized banks are PSBs but the reverse is not true. RBI is a Nationalized bank.
 What are the various risks that Banks face?

There are mainly three types of risks faced by banks:-
 Credit risk: - Loan or NPA.
 Market risk: - Money invested in the market.
 Operational risk: - Day-to-day working risks.
 Micro finance and Micro credit:
Micro credit is giving a small amount of loan(less than 50,000) to the customers whereas Micro Finance is a wide term.
It includes small loan + training on financial matters. In other words,
Micro finance= Microcredit + financial Literacy.
 AADHAR Card:
Aadhaar, or the 12-digit unique identification (UID) number that will identify the 1.2 billion residents of the country on
the basis of their biometrics, will have an additional four digits that will be hidden from the common man. India Govt. decided to
provide subsidies (for LPG & Other) to people directly to their Aadhaar Linked Bank account. Aadhar Card is mandatory for e-
KYC.
 EMV based card payments:
EMV stands for EuroPay, MasterCard and Visa, a global standard for inter-operation of integrated circuit cards (IC
cards or "chip cards") and IC card capable point of sale (POS) terminals and automated teller machines (ATMs), for
authenticating credit and debit card transactions. It is a joint effort initially conceived between Europay, MasterCard and Visa to
ensure the security and global interoperability of chip-based payment cards
 Take out financing:

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As per newspaper report one of the major public sector banks sold out its Rs.500 Cr loan to IIFCL. This type of buying
& selling of loans in banking sector is known as take out financing. It is a kind of long term(15-20 years) financing by banks.
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 SDR (Special Drawing Rights):
SDR are new form of International reserve assets, created by the International Monetary Fund in 1967. The value of
SDR is based on the portfolio of widely used countries and they are maintained as accounting entries and not as hard currency
or physical assets like Gold.
 Right to information (RTI) Act:
The Right to Information act is a law enacted by the Parliament of India giving citizens of India access to records of
the Central Government and State governments. The Act applies to all States and Union Territories of India, except the
State of Jammu and Kashmir - which is covered under a State-level law. This law was passed by Parliament on 15 June 2005
and came fully into force on 13 October 2005..
 How RBI Acts as the custodian of the country‘s Foreign Exchange Reserves?
The RBI manages exchange control and acts as the agent of the Govt. in respect of India‘s membership of IMF. Under
exchange control, control was imposed on both the receipts and payments of foreign exchange. The foreign exchange
regulations under the law required that all foreign exchange receipts whether on account of export earnings or capital receipts,
whether on private account or government account, must be sold to RBI either directly or through authorized dealers(mostly
commercial banks). Current Reserves-$311.86 bn
 Difference between VISA & Passport:
 Passport is a document which is used for personal identification during abroad travels. The significant difference
between visa and passport is that Visa is an official permission which temporarily authorizes us to stay in a foreign
country and the passport is a document that certifies our identity during our travels. Passport is an official document
issued by a national government. The purpose of the passport is to certify the identity and nationality of the owner of
the passport. A passport contains the following personal data: name, sex, date of birth, and place of birth.
 Visa is an official permission that allows us into a specific country. This permission is granted by government
officials of the country we wish to visit. The visa can be a separate document but usually it is a stamp in the
passport of the traveler.
 Dear Money/Tight Money:
Money which has to be borrowed at a high interest rate& so restricts expenditure by companies. (OR) A policy in
which a government reduces the amount of money being spent in an economy by raising interest rates, making it more
expensive to borrow money. It is the opposite of Easy/cheap money.
 BARTER:
Trading in which goods or services are exchanged without the use of cash is known as Barter, Resorted to usually in
times of high inflation or tight money.
 Insurance Policy:
It is a contract between the Insurer & insured, known as the Policyholder, which determines the claims which the
insurer is legally required to pay. In exchange for an initial payment known as the Premium, the insurer promises to pay for loss
caused by perlis covered under the policy language.
 Gold Standard:
A system of setting currency values whereby the participating countries commit to fix the prices of their domestic
currencies in terms of a specified amount of gold.
 IDR (Indian Depository Receipt) & GDR (Global Depository Receipt):
 An IDR is a financial instrument denominated in Indian rupees in the form of a depository receipt created by a domestic
depository (custodian of securities registered with SEBI) against the underlying equity of issuing company to enable
foreign companies to raise funds from Indian securities market. In short IDR is the proof of ownership of foreign
companies share.
 GDR 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.

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―Zero Hour‖ in Parliament:
The zero hour is an informal (i.e. not recognized in parliamentary procedure) time slot allocated for the members to
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discuss issues. Zero hour has now become a norm in both the houses of parliament. The parliament starts with ―Question Hour‖
where members asked questions. Zero hour can also be defined as the time gap between the end of question hour & the
beginning of regular business. The significance behind the name ―zero hour‖ that it starts at 12 noon (30min duration maximum
upto 1 p.m)
 Types of Govt. Bonds:

 Dated Securities-Dated Securities have fixed maturity and are identified with the date of maturity. They have either
fixed rate of interest or coupon rates which are semiannually payable.
 Zero Coupon Bonds-Zero Coupon Bonds are the securities which are issued at Face Value and redeemed at Par
Value. They are not issued now. Zero coupon bonds were issued in 1990s only.
 Floating rate Bonds-These refer to the changing interest rate bonds. The interest rate or coupon rate is higher than a
Benchmark rate and usually linked to that benchmark rate. When the benchmark rate increases, the coupon rate also
increases.
 Call / Put Option Bonds-The Call/ Put Option bonds were issued in 2002 for the first time. The call and put opt ion
means that the bond holder can sell it back to the government and Government could buy it from the bond holder, after
a prefixed period.
 IFRS:
IFRS (International Financial Reporting Standards) is principles based set of accounting standards developed by
the International Accounting Standards Board (IASB), an independent group of 15 experts. IFRS is steadily becoming the global
standard for the preparation of financial statements of public companies. The IFRS is relevant to the extent that the financial
statements as per the international standards would make the comparisons of the Indian companies and their international
competitors / stakeholders/ partners easier. So, the basic idea is to increase the trust and reliance placed by the investors,
stakeholders and analysts in the companies. For the companies, which are subsidiary to the foreign companies, it would be
mandatory if their parent company uses IFRS. To a great extent, the IFRS documents would help the domestic companies to
raise the capital abroad.
 Main function of Competition Commission of India (CCI):
CCI is an independent body which become operational w.e.f May 20, 2009 and is responsible for investigating the
mergers, market shares & conditions besides regulating firms. CCI will ultimately replace the Monopolies and Restrictive Trade
Practices Commission (MRTPC) of India.
 Various Important Commissions in India:
1. Finance Commission of India:

 Established by President of India.
 Formed to define financial relationships between center & state.
 This commission is appointed in every 5 years.
 It consists of chairman & 4 other members.
Commission Duration Chairman Constituted in

th
12 2005-2010 C. Rangarajan 2003
th
13 2010-2015 Vijay kelkar 2007
th
14 2015-2020 Dr. Y V Reddy 2012
2. Planning Commission Of India (Now NITI Aayog):

 It formulates India‘s 5 year plan.
 Its Chairman-The PM of India
th
 Now 12 5 year plan(2012-2017) is going on
 Planning commission renamed as NITI (National Institution for Transforming India) Aayog in Jan 2015.
3. Pay commission of India:

 It gives recommendation regarding salary structures of its employees
Commission Head Implemented from Recommendation

th
6 Justice B N Krishna 2008 …………
th
7 Justice A K Mathur 2016 ………..
 What is REER? How it differs from NEER?
 REER stands for 'REAL EFFECTIVE EXCHANGE RATE‘. The weighted average of a country's currency
47
relative to an index or basket of other major currencies adjusted for the effects of inflation. The weights are
determined by comparing the relative trade balances, in terms of one country's currency, with each other
country within the index
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 NEER stands for 'NOMINAL EFFECTIVE EXCHANGE RATE‘. The unadjusted weighted average value of a
country's currency relative to all major currencies being traded within an index or pool of currencies is known
so. The weights are determined by the importance a home country places on all other currencies traded within
the pool, as measured by the balance of trade. A higher NEER coefficient (above 1) means that the home
country's currency will usually be worth more than an imported currency, and a lower coefficient (below 1)
means that the home currency will usually be worth less than the imported currency. The NEER also
represents the approximate relative price a consumer will pay for an imported good.
 What is “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.
 STR (Suspicious Transaction Report) or SAR (Suspicious Activity Report):
STR refers to the information demanded by internal revenue service from banks & other financial institutions regarding
suspicious transactions. For example violation of bank secrecy Act or violation suggesting Tax Evasion or Money Laundering.
 Merchant Banking
A Merchant bank is a financial institution that provides capital to companies in the form of share ownership instead of
loans. A Merchant bank also provides advisory on corporate matters to the firms they lend to. In the United Kingdom, the term
"Merchant bank" refers to an Investment bank.
Like investment banks, merchant banks are not depository/retail lender institutions. Rather, merchant banks are
intermediaries that provide brokerage, fund-raising, and financial advisory services on a large scale to businesses and a smaller
scale to wealthy individuals. For this reason, they often assist in international transactions involving entities such as multinational
corporations.
Do You Know?
 The loan in which interest collected at a less rate at beginning & more at latter time is called Teaser
Loan. Teaser loans try to entice borrowers by offering an artificially low rate and small down payments,
claiming that borrowers should be able to refinance before the increases occur. Teaser rate related to
Home loan.
 The loan in which the schedule periodic payment in both principal & interest takes place is called
Amortized Loan.
 The loans which are not fully amortized are called Ballon Loans. A balloon loan is a mortgage that
requires a larger-than-usual one-time payment at the end of the term. This can mean your payments
are lower in the years before the balloon payment comes due.
 A Tobin tax, suggested by Nobel Memorial Prize in Economic Sciences Laureate economist James
Tobin, was originally defined as a tax on all spot conversions of one currency into another. The tax is
intended to put a penalty on short-term financial round-trip excursions into another currency.
 A collective fund containing several sub-funds, each of which invests in a different market or country is
called Umbrella Fund. The umbrella fund structure makes it cheaper for savers to move from one sub-
fund to another.
 Delinquency is the failure to repay an obligation when due or as agreed. In consumer installment loans
missing two successive payments will normally make the account delinquent.
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Rule number One: Don’t Criticize, Condemn or Complain- Dale Camegie

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Banking Abbreviation
ABCP - Asset Backed Commercial Paper GAAR - General anti avoidance rule
ADRs - American Depository Receipts GDRs - Global Depository Receipts
ADs - Authorized Dealers GST - Goods and Services Tax
AIFI - All India Financial Institution GIRO - Government Internal Revenue Order
ALM- Asset Liability Management IFSC – Indian Financial System Code
AML – Anti Money Laundering IIP - Index of Industrial Production
AMFI- Association of Mutual Fund in India IPAs - Issuing and Paying Agents
ANBC - Adjusted Net Bank Credit IDEAS- Indian Development & Economic Scheme
ATM - Automated Teller Machine IDRBT- Institute for Development & Research in
ASBA- Application Supported by Blocked Amount Banking Technology
BBPS-Bharat Bill Payment System IMPS - Interbank Mobile Payment Service
BC - Business Correspondent InvITs- Infrastructure Investment Trusts
BCSBI- Banking Codes & Standards Board of KYC – know Your Customer
India LCR- Liquidity Coverage Ratio
BSBDA - Basic Savings Bank Deposit Account LRMT: Liquidity risk monitoring tools
BCBS- Basel Committee on Banking Supervision LIBOR- London Inter-Bank Offer Rate
BIFR-Board for Industrial and Financial Reconstruction LAF – Liquidity Adjustment Facility
BIS - Bank for International Settlements MAT-Minimum Alternate Tax
BoP - Balance of Payments MFI - Micro Finance Institution
BPLR - Benchmark Prime Lending Rate MSF-Marginal Standing Facility
CDR- Corporate Debt Restructuring MSP - Minimum Support Price
CAD- Capital/Current Account Deficit MSS - Market Stabilization Scheme
CBS- Core Banking Solution MIBOR: Mumbai Inter-Bank Offer Rate
CBDT - Central Board of Direct Taxes NABARD - National Bank for Agriculture and Rural
CBEC-Central Board of Excise & Customs Development
CORE-Centralized Online Real-time Exchange NBFCs - Non-Banking Financial Companies
CCEA – Cabinet Committee on Economic Affairs NDTL - Net Demand and Time Liability
CCIL - Clearing Corporation of India Limited NEFT - National Electronic Funds Transfer
CCRS - Currency Chest Reporting System NFS - National Financial Switch
CD - Certificate of Deposit NHB - National Housing Bank
CDR - Corporate Debt Restructuring NIBM - National Institute of Bank Management
CECA-Comprehensive Economic Cooperation Agreement NBFC-Non Banking Finance Companies
CENVAT - Central Value Added Tax NCTC - National Counter-Terrorism Centre
CEPA– Comprehensive Economic Partnership Agreement NIF - National Investment Fund
CICs - Credit Information Companies NIMSME - National Institute for Micro, Small and
CPSEs - Central Public Sector Enterprises Medium Enterprises
CRAR- Capital to Risk-weighted Assets Ratio NIPFP - National Institute of Public Finance and
CRR - Cash Reserve Ratio Policy
CTS - Cheque Truncation System NPCI - National Payments Corporation of India
CFSA-Committee On Financial Sector Assessment OLTAS - On-line Tax Accounting System (OLTAS)
CACP- Commission on Agricultural Costs & Prices OMO - Open Market Operation
CASA- Current Account Savings Account OCC- Open Cash Credit Account
CAR – Cash/Capital Adequacy Ratio PIN- Personal Identification Number
DEAF- Depositor Education and Awareness Fund PACS - Primary Agricultural Credit Socity
DRI - Differential Rate of Interest PPP – Public Private Partnership &Purchasing Power parity
DRT - Debt Recovery Tribunal QFI -Qualified Foreign Investors
DTAA – Double Taxation Avoidance Agreement QIP - Qualified Institutional Placement
DICGC- Deposit insurance and credit guarantee corporation. RTGS - Real Time Gross Settlement
ECBs - External Commercial Borrowings REER- Real Effective Exchange Rate
EEFC - Exchange Earner's Foreign Currency SARFAESI - Securitization and Reconstruction of
ECB - External Commercial Borrowings Financial Assets and Enforcement of
ECS - Electronic Clearing Services Security Interest
EFSF – European Financial Stability Facility SEZs - Special Economic Zones
ECGC-Export Credit Guarantee Corporation of India STR- Suspicious Transaction Report
ESOS - Employees Stock Option Scheme STRIPS - Separate Trading for Registered Interest
FCNR(B)- Foreign Currency Non-Resident Bank and Principal of Securities
FCCB - Foreign Currency Convertible Bond SWIFT - Society for Worldwide Interbank Financial
FDI - Foreign Direct Investment Telecommunication
FINO- Financial Inclusion Network Operation SLR-Statutory Liquidity Ratio
FIIs - Foreign Institutional Investors SEPA- Single Euro Payment Area
FIPB – Foreign Investment Promotion board SFMS - Structured Financial Messaging System
FMCG-Fast Moving Consumer Goods TIN - Tax Information Network
FSLRC – Financial Sector Legislative Reforms Commission TIEA – Tax Information exchange Agreement
FRBMA- Fiscal Responsibility and Budget Management Act TAPI - Turkmenistan-Afghanistan-Pakistan-India
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FTA- Free trade agreement TARC - Tax Administration Reform Commission

FIMMDA-Fixed Income Money Markets and Derivatives ULIP-Unit Linked Insurance Plan
Association UAN- Universal Account Number.
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FATF- Financial Action Task Force (FATF) WPI - Wholesale Price Index
FEMA- Foreign Exchange Management Act WMA - Ways and Means Advance
Miscellaneous One Liner
PART-A
1. Holidays are provided in banks are regulated by Negotiable Instrument Act.
2. Union budget of India comes under Article-112 of Indian Constitution.
3. Article-110 describes Money Bill & Article-280 describes Finance Commission.
4. Pound Sterling is the oldest currency in the world.
5. Meeting the needs of the present without compromising the ability of future generations to meet their needs is called
sustainable development. This concept is popular in present context of development.
6. Insider Trading: The illegal use of non-public information about a company to make profitable securities transactions
7. Kiosk Banking: It is a self-service solutions, allowing customers to service themselves with computer based on
touchscreen and making different sort of transactions.
8. Letter of Credit: It is an agreement whereby an issuing bank at the request of the importer (buyer) undertakes to make
payment to the exporter (beneficiary) against stipulated documents.
9. Limited Company: A Limited company is limited with respect to Shareholders Liability not with respect to Ownership.
It is two types
(i) Private Limited Company: - A private company limited by shares usually called a private limited company i.e.
it has shareholders with limited liability and its share cannot be offered to general public, therefore cannot
be traded on a public stock exchange. As per – section 2(68) of companies Act 2013, the maximum number
of members of a private company has been increased from 50 to 200. A Pvt. Ltd. Company cannot be listed on
stock exchange & its share cannot be sold to third party. It is denoted by Pvt. Ltd. Or Inc. or Incorporated
e.g. Google Inc., Twitter Inc., Facebook Inc. XYZ Pvt. Ltd.
(ii) Public Limited Company: - A Public limited company‘s share may be freely sold & traded to the general
public. It may be listed or unlisted on stock exchange. It is denoted by Ltd. Or PLC or Plc..
10. An exchange rate system characterized by the absence of government intervention is called Free Float Exchange
Rate system. Also known as a clean float.
11. The agricultural census done once in 5 years
th
12. 11 5 year plan is termed as plan for India‟s Education
th
13. 12 5 year plan is termed as plan for Education, Sanitation & Health
14. Rupee appreciation results in Increase in Imports.
15. Which of the following can‘t be called as a debt instrument in financial transaction(CDs, Bonds, CPs, Loan, Stocks)
16. If you wish to purchase US Dollar to travel abroad, you will approach any authorized bank authorized for such
activity.
17. The apex body in co-operative sector & deals in procurement, distribution, export & import of selected agricultural
commodities is NAFED(National Agricultural Cooperative Marketing Federation of India)
18. Tax levied on foreign exchange transaction-TobinTax
19. Local tax collected on various articles bought into a district for consumption-OCTROI Tax
st
20. Plastic Currency Note 1 used by Austalia.
21. Rise in stock market referred as-BULL
22. Fall in stock market referred as-BEAR
23. BCTT is a tax levied on cash withdrawal or deposit from/to a bank.
24. Blue chips are unsurpassed in quality and have a long and stable record of earnings and dividends.
25. Book Value is the amount of stockholders‘ equity in a firm equals the amount of the firm‘s assets minus the firm‘s
liabilities and preferred stock.
26. Coupon: - The feature on a bond that defines the amount of annual interest income.
27. Garnishee Order: -When a Court directs a bank to attach the funds to the credit of customer's account under
provisions of Section 60 of the Code of Civil Procedure, 1908.
28. Foreign Trade Policy of India announced by Ministry Of Commerce
29. Validity of Kisan Credit Card(KCC)-5 Years
30. Teller: -Teller is a staff member of a bank who accepts deposits, cashes cheques and performs other banking services
for the public.
31. Japan is called Land of the Raising sun and Norway is called Land of the Midnight Sun.
32. Which of the following doesn‘t come under Core Sector(crude oil, natural gas, coal, automobiles, electricity)
33. Which of the following doesn‘t come under Priority Sector(agriculture, education, housing, export credit, automobiles)
34. As per KYC norm of RBI furnishing PAN is required if the amount of transaction in cash exceeds-Rs.50,000.
35. The SDR of IMF is also known as Paper Gold
36. Money which has borrowed at a high interest rate-Dear Money/Tight Money.
37. Cheques are called as Near Money (i.e. Assets that can be quickly convertible to cash e.g. bill of exchange, Bond,
Equity Shares, banker‘s acceptance, savings deposit, LIC Policy, Treasury Bill etc.)
38. Who among the following can‘t be appointed as a nominee by an account holder with a bank? (An HUF (Hindu
Undivided Family), A Minor, A retired person, An NRI, An Insolvent).
39. Reserve Bank of India (RBI) was established in 1935 and Nationalized in 1949.
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40. Sir Osborne Smith was the first Governor of the Reserve Bank of India
41. CD Deshmukh was the first Indian Governor of RBI.
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42. Savings account system in India was started by Presidency Bank, in 1833.
43. Cheque system was first introduced by Bengal Bank which was established in 1784.
44. Allahabad Bank is the oldest existing public sector bank in India.
45. Hong kong and Shanghai Banking Corporation (HSBC) introduced first time ATM in India in 1987, Mumbai.
46. Bank of India is the first Indian Bank to open overseas branch. It established a branch in London in 1946.
47. In 1955 Imperial Bank of India became State Bank of India.
48. Central Bank of India was the first public bank to introduce credit card.
49. Central Bank of India is the first commercial bank which was managed by Indians.
50. ICICI Bank was the first Indian Bank to provide internet banking facility.
51. ICICI Bank was the first Bank to provide Mobile ATM.
52. Bank of Baroda has the maximum number of overseas branches.
53. SBI (State Bank of India) has the total number of maximum branches and holds 2nd position in the world.
54. India's first "Talking" Automated Teller Machine (ATM) launched by Union Bank of India (UBI) for visually impaired
was launched in Ahmedabad (Gujarat).
55. Authorized capital is the maximum amount of capital which a company can raise through sale of its shares. Paid-up
capital/ Core capital is the amount of capital that it actually issues and has received payment for from the sale of its
shares. Seed Capital is the initial capital used to start a business.
56. Working Capital = Current Assets – Current Liabilities.
57. Garnishee Order: A court order instructing a garnishee (a bank) that funds held on behalf of a debtor (the judgment
debtor) should not be released until directed by the court. The order may also instruct the bank to pay a given sum to
the judgment creditor (the person to whom a debt is owed by the judgment debtor) from these funds.
58. In call money market Insurance companies only operated as lenders, whereas commercial banks act as both borrower
& Lender.
59. The Indian rupee is a Standard Token Coin.
60. Amortization-The process of reducing debt through regular installment payments of principal and interest that will
result in the payoff of a loan at its maturity.
61. The Paid-up capital for Non-scheduled bank-less than 5 lakh, Scheduled bank-500 cr(200 +300 within 3 yr), NBFC-
500 Cr, Payment & small bank-100 cr.,Urban co-operative bank-Min 1 Lakh.
62. ISO 9362 is related to SWIFT Transfers.
63. Once a budget has been presented in the Parliament, the government has to get all money bills related to the union
budget passed within 75 Days.
64. A commercial bank will launch a Medium Term Note (MTN) programme to raise funds.
th
65. PAN is of 10 alpha-numeric digit. The 5 digit represents the first letter of account holders Surname.
66. Pin Code allotted to the Supreme Court-„110 201‟
67. If the Reserve Bank of India wants to increase the Cash Reserves of Commercial Banks-It Buy bonds in the open
market.
68. A bank opened in Special Economic Zones (SEZ) in India comes under Offshore Banking (These banks may accept
deposits from other foreign banks but may not accept deposits from the residents of the country in which it is located).
69. Cheques that are issued by a bank and function as cash but are protected against loss or theft are called-Traveler‟s
cheque.
70. Forward Market Commission (India) is comes under which ministry of India? - Ministry of Finance.
71. Withdrawal from currency chest-Min.. Rs. 1 Lac and thereafter in multiple of Rs.50,000.
72. MSP stands for Minimum Support Price, MEP stand for Minimum Export Price.
73. (SIDBI-Subsidiary of IDBI) & (NHB, DICGC, BRBNMPL-Fully owned Subsidiary of RBI)
74. FPI (Foreign Portfolio Investors) = FII +QFI (Qualified Foreign Investors).
75. An Excise Tax (Excise Duty) is an inland tax on the goods produced for sale& it is an Indirect Tax, Whereas
Custom Duty is tax imposed on Export & Import of goods into or out of a country.
76. The index TOPIX is a benchmark stock market for Tokyo Stock Market.
77. DTAA stands for Double Taxation Avoidance Agreement. It is an agreement between two countries with an objective to
avoid taxation of the same income in both countries. India has comprehensive Double Taxation Avoidance Agreements
(DTAA) with 84 countries as of now.
78. GAAR-Tax Avoidance is an area of concern across the world. The rules are framed in different countries to minimize
such avoidance of tax. Such rules in simple terms are known as “General Anti Avoidance Rules” or GAAR. Thus
GAAR is a set of general rules enacted so as to check the tax avoidance.
79. Minimum alternate tax (MAT) an indirect tax, is a way of making companies to pay a minimum amount of tax on their
profits. Foreign companies (FIIs) with income sources in India are liable under MAT.
80. Businesses that Sell to Consumers(B2C):
 Product driven
 Maximize the value of the transaction
 Large target market
 Single step buying process, shorter sales cycle
 Brand identity created through repetition and imagery
 Merchandising and point of purchase activities
 Emotional buying decision based on status, desire, or price
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Businesses that Sell to Businesses (B2B):

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 Relationship driven
 Maximize the value of the relationship
 Small, focused target market
 Multi-step buying process, longer sales cycle
 Brand identity created on personal relationship
 Educational and awareness building activities
 Rational buying decision based on business value
81. CENVAT (Central Value Added Tax)-Indian CENVAT Excise Duty is a tax levied on the manufacture or production of
movable and marketable goods in India..
82. INFINET (Indian Financial Network) - the satellite based VSAT (very small aperture terminals) network developed by
Institute for Development and Research in Banking Technology (lDRBT, Hyderabad, an RBI sponsored organization)
is fast and secure intra-bank and inter-bank communication system. Other previous communication network
technologies in banking include BANKNET, RBINet, SWIFT, I-net, NICNET etc.
83. The public sector bank emblem figures a dog and the words „faithful, friendly‟ in it is Syndicate bank.
84. Which among the following is an asset for a commercial bank?( Credit to farmers/Deposit of public/Borrowings form
RBI/Demand deposits of industries/None)
85. FICCI – Federation of Indian Chambers of Commerce and Industry. IFAD – International Fund for Agriculture
Development. RNBC – Residuary Non-Banking Companies. SIDC – State Industrial Development Corporation. SLRS –
Scheme for Liberation and Rehabilitation of Scavengers.
86. EMI (Equated Monthly Installment) – comprises of both Interest & Principal.
87. Dabba Trading- It is an illegal trading practice where a stockbroker executes a customer‘s trade without taking it to a
stock exchange with the hope of earning profit in future.
88. The term BADLA (related to banking industry) is a carry forward system in stock exchange.
89. LERMS stands for Liberalized Exchange Rate Management System.
90. “Gold Tranche” refers to a credit system granted by IMF to its members.
91. ESOP stands for Employee Stock Option Plan.
92. The Base rate of each bank is to be reviewed after every(Quarter/Month/Year/Week/Day)
th
93. The 7 Schedule of Indian constitution includes Banking.
94. A Soft currency indicates a currency which is expected to depreciate against other currencies.
95. For a closed economy GDP = GNP because there is no net income earned abroad.
96. SPNS Stands for Shared Payment Network System.
97. Amount of loan available to individuals on securities of Demat shares is Min. 1 Lac & Max. 20 Lac
98. DTC (Direct Tax Code) will replace all Direct taxes & GST will replace all Indirect taxes (VAT).
99. When the exchange rate is adjusted so that an identical good in two different countries has the same price when
expressed in the same currency is called as Purchasing power parity (PPP).
100. Liquid asset include money market fund, shares, govt. securities, mutual funds, cash value of LIC Policy whereas
Goodwill, trademarks, copyrights or patents, certificate of deposits are non-liquid assets.
Miscellaneous One Liner
PART-B
1. RRB & Co-operative banks are regulated by………?NABARD
2. Head Quarter of Bankers Institute of Rural Development (BIRD) is at…………? Luckhnow
3. Head Quarter of RBI‘s Subsidiary NHB is at…………..? New Delhi
4. IBRDT (institute for development & research in banking technology) HQ is at……………….? Hyderabad
5. In MUDRA ―R‖ abbreviated as…………….Refinance
6. A financial ratio used to measure a company‘s Liquidity is …………Quick Ratio/Acid Test Ratio
7. In FRBM ―B‖ abbreviated as……………..Budget
8. Draft/Banker‘s Cheque of amount over…………….. will not be paid in cash? Rs. 50,000
9. In NABARD the share of Central govt. & RBI are ………&……… respectively. 99% & 1%
10. Loans given to poor farmers to purchase seeds, fertilizer etc generally through co-operative banks is called
………Taccavi Loan
11. Money that can be used as a tender e.g. Govt. order but doesn‘t have a physical commodity is called…………FIAT
Money
12. Maximum…………..number of withdrawals permitted in a savings a/c half-yearly? Fifty
13. If a BSBDA account is opened on the basis of Simplified KYC, it is called …………….?Small Account
14. The validity of small accounts is …….. months initially ? Twelve months
15. Delivery of financial service at affordable costs to sections of disadvantaged & low income segment of the society is
called…………..Financial inclusion
16. ……………ID Proof card is mandatory for e-KYC. Aadhar Card
17. Interest earned on Term deposits is subject to TDS. In TDS ―T‖ stands for…………………?Tax
18. Maximum period of fixed deposits in India is…………….? Ten years
19. ATMs in which investment, installation & maintenance are by a private operator but license & branding by commercial
bank is called……………….? Brown label ATM
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20. In which type of account savings account is linked to fixed deposit account, whenever the balance in the savings a/c
exceeds the limit set, it is automatically transferred to fixed deposit a/c & enable the customer to earn more interest?
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Flexi/Sweep A/C.
21. Maximum value that can be stored in prepaid cards is………..Rs. 50,000
22. Finacle, BaNCS & Flexcube are some of …………………CORE banking software packages.
23. The middle 3 digits of MICR code represents………………Bank.
24. ECS is an auto credit & auto debit facility for transactions which are periodic & repetitive in nature. In ECS ―C‖ stands
for…………..Clearing
25. High denomination note (Rs. 500 & Rs. 1000) maximum…………..can be taken to Nepal under ―Indo-Nepal remittance
facility scheme‖? Rs. 25,000
26. CIBIL Transunion Score is a 3-digit number that ranges between…………300-900
27. ETF stands for…………….Electronic Traded Fund
28. RBI releases FSR (Financial stability Report) in every …………months? Six months
29. Maximum denomination of …………….. Rupees paper currency can be printed? 10,000
30. A bank note contains total………………languages. 17 languages
31. In NDTL ―L‖ stands for………………..Liability
32. A cheque after…………..months from the date of issue is called Stale cheque? Three month
33. The loan in which interest collected at a less rate at beginning & more at latter time is called……………..Teaser Loan
34. The head quarter of BIS is at……………Basel, Switzerland
35. In CRAR ―A‖ stands for………..Asset
36. MMID code used in IMPS. MMID abbreviated as………..? Mobile Money Identifier
37. Which sector contributes maximum to India‘s GDP? Service Sector. Bank comes under which sector? Service Sector
38. Combination of high unemployment & economic stagnation is called……………..Stagflation
39. What are the components of Foreign Exchange Reserves? Foreign currency assets, Gold, Special Drawing Rights &
Reserve Position in the IMF
40. What is the minimum reserve capital that all scheduled banks must maintain in the Reserve Bank of India? 5 Lakh
Rupees
41. Banks have to pay compensation of how much rupees per day for delays in re-crediting the amount beyond 7 working
days from the date of receipt of complaint for failed ATM transactions? Rs. 100
42. An asset which has been classified as NPA for a period exceeding 12 months is considered as? Doubtful Asset
43. The DICGC insures principal and interest to the account holders in a bank upto a maximum amount of? 1 lakh
44. RBI said that all term deposits of individuals (held singly or jointly) of…………….amount and below should, necessarily,
have premature withdrawal facility? Rs.15 lakh
45. RBI said banks will have the discretion to offer differential interest rates for term deposits above ……..? Rs.15 lakh.
46. The minimum amount to be remitted through RTGS is? 2 lakh
47. The maximum limit to be remitted through NEFT for cash-based remittance is………? Rs.50, 000
48. What is the full form of SARFAESI? How it is related to banking sector? Securitization and Reconstruction of Financial
Assets and Enforcement of Security Interest Act. It is used for the recovery of NPA.
49. What is the PSL target in Agriculture? 18 percent of ANBC(Adjusted Net Bank Credit)
50. When a Negotiable Instrument contains, on the back of the instrument, signed by the holder or payee of an order
instrument, transferring the title to the other person, it is called? Endorsement
51. What is the minimum age to open a bank account? 10 years
52. Name the account which is maintained in foreign currency with an Authorized Dealer i.e. a bank dealing in foreign
exchange by business persons in India who require foreign exchange on regular basis? Exchange Earners' Foreign
Currency Account (EEFC)
53. ATMs which are set up, owned and operated by non-banks are called as? White Label ATMs
54. If anyone is not satisfied with the decision passed by the Banking Ombudsman, he/she can approach the appellate
authority. who is the appellate authority under this? Deputy Governor of the RBI
55. Farmers with landholding of up to 1 hectare are considered as? Marginal Farmers
56. What is the Overall PSL Target for Domestic Bank/Foreign Bank with more than 20 Branches? 40 percent of Adjusted
Net Bank Credit (ANBC) (For RRB PSL target is 75%).
57. The NBFCs are allowed to accept/renew public deposits for a minimum period of _______ and maximum period of
_______. They cannot accept deposits repayable on demand? 12 months & 60 months
58. An account is maintained by an Indian Bank in the foreign countries? NOSTRO account
59. The Maximum value of CRR can be……….? 15%
60. The Maximum value of SLR can be ……? 40%
61. For a New Bank Paid-up capital is………. & License Period is………..? 500 Cr. & 18 Months
62. Tax imposed on Production is…………& on Export-Import is…………? Excise Duty & Custom Duty.
63. The interest earned on Savings bank account is exempted from taxation up to……………..Per Year? Rs. 10,000
64. The Reserve Bank of India (RBI) on Feb 3, 2015 in its monetary policy review enhanced the limit under Liberalized
Remittance Scheme (LRS) to……………per person per year? $250,000
65. What are the types of risks involved in investments in G-Sec? G-Secs are usually referred to as risk free securities.
However, these securities are subject to only one type of risk i.e., interest-rate risk. Subject to changes in the
overall interest rate scenario, the price of these securities may appreciate or depreciate.
66. Call Money Market Participants :
1) Those who can both borrow as well as lend in the market - RBI (through LAF) Banks, PDs
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2) Those who can only lend Financial institutions-LIC, UTI, GIC, IDBI, NABARD, ICICI and mutual funds etc.
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“The mind is everything. What you think you become” –Buddha

Multiple Choice Questions (MCQs)
1. ‗Certificate of Deposit‘ can be issued by _____? (c) Offer Credit Card
(a) Reserve Bank, NABARD and Exim Bank only (d) Handle cross border remittances
(b) Commercial banks and term lending institutions (e) All of the above
(c) Scheduled commercial banks excluding regional
rural banks 9. The ―Negotiable Instruments Act‖ deals with ____?
(d) All the above (a) Cheques, demand drafts, banker‘s cheques
(e) None of the above (b) Promissory notes, Bills of exchange and
Cheques
2. ‗Commercial paper‘ may be issued for a period of (c) Bills of exchange, cheques and demand drafts
____? (d) Cheques, demand drafts and saving bank
(a) 90 days withdrawal forms
(b) 91 to 180 days (e) None of the above
(c) 7 days to one year
(d) All the above 10. The Minimum acceptable amount under the Scheme
(e) None of the above of ‗Certificate of Deposit‘ is ____?
(a) Rs. 1 lakhs
3. ‗Demand deposits‘ mean _____? (b) Rs. 10 lakhs
(a) Deposits withdrawable on demand by the (c) Rs. 20 lakhs
depositor (d) Rs. 25 lakhs
(b) Current deposits (e) None of the above
(c) Fixed deposits
(d) Short deposits 11. ―Crossing‖ denotes
(e) None of the above (1) That the cheque will not be paid across the
counter but will be credited to the account of the
4. What is ‗Call Money‘‖? holder
(a) Money borrowed and lent for overnight or a (2) That the cheque cannot be transferred by the
day payee named therein
(b) Money borrowed for more than a day but upto 3 (3) That the cheque will be paid through clearing only
days (4) A direction to the paying bank to make payment of
(c) Money borrowed for more than a day but upto 7 the cheque through a bank
days (5) None of the above
(d) Money borrowed for more than a day but upto 14
days 12. Who is primarily liable on a cheque?
(e) None of the above (1) Drawee banker
(2) Drawer
5. ‗Time deposits‘ means _____? (3) Payee
(a) The deposits which are lent to bank for a fixed (4) Collecting banker
period (5) None of the above
(b) Time deposits include overdue fixed deposits
(c) Time deposits do not include recurring deposits as 13. In the case of a Demand draft
well (1) Drawer, drawee and payee are the same
(d) Time deposits do not include deposits under (2) Drawer, drawee and payee are different
Home Loan Account Scheme (3) Drawer and drawee are the same but he payee
(e) None of the above is different
(4) Drawer and payee are the same but the drawee is
6. Which of the following acts as Regulators for Credit different
rating agencies in India? (5) None of the above
(a) RBI
(b) NSDL 14. ‗Demand draft‘ is a
(c) SEBI (1) Not negotiable instrument
(d) SIDBI (2) Not transferable instrument
(e) None of the above (3) Negotiable instrument
(4) Quasi-negotiable instrument
7. A ―NBFC‖ is prohibited to offer or undertake _____ ? (5) None of the above
(a) Accept demand deposits
(b) Accept time deposits 15. The ―Kisan Credit Card Scheme‖ is being
(c) Lend long term loans implemented by all
(d) Pay a higher rate of interest on deposits as (1) Public Sector Commercial Banks
compared to Banks (2) Regional Rural Banks
(e) None of the Above (3) State Cooperative Banks/DCCBs/PACS and
Scheduled Primary Cooperative Banks
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8. A ―Payment bank‖ is prohibited to offer or (4) All of the above

undertake_______? (5) None of the above
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(a) Accept NRI Deposits

(b) Extend Loans
16. Which of the following Statements about ―Kisan Credit (3) Closed user group network of SBI and its
Cards‖ are correct? subsidiaries
(1) Banks may provide Kisan Credit Cards to farmers (4) All of the above
who are eligible for sanction of production credit (5) None of the above
without any floor limit
(2) Credit would be available to the farmers under the 23. To restrict expansion of credit, the Reserve Bank :-
scheme in the form of revolving cash credit normally (1) Raises the bank rate
valid for three years, subject to an annual review (2) Reduces the bank rate
(3) The Scheme covers term credit as also working (3) Freezes the bank rate
capital for agriculture and allied activities, in addition (4) None of these
to short term credit limit for crop/s (5) All of these.
(4) All of the above
(5) None 24. Bank rate policy, open market operations, variable
reserve requirements and statutory liquidity
17. An originator in India is allowed to remit a requirements as measures of credit control are
maximum…….….remittances in a year under the classified as :-
―Indo-Nepal Remittance Facility‖ scheme? (1) Quantitative methods
(1) 10 (2) Qualitative methods
(2) 11 (3) Weighted average method
(3) 12 (4) Both 1 and 2
(4) 15 (5) None of the above.
(5) 20
25. Which of the following fall under the qualitative
18. The main functions of ―Mutual Funds‖ are method of credit control adopted by Reserve bank of
(1) Collection of funds from a larger of investors India:-
(2) Investment of funds so collected in capital (1) Selective credit control
markets (2) Moral suasion
(3) Holding investment in trust and to diversify the risk (3) Credit authorization scheme
in the investment, proper management of portfolio (4) All of the above
with an object to optimize the returns (5) None of the above.
(5) None of the above 26. By Crossing we mean :-
(1) Two horizontal lines on a cheque
19. An ―Open ended fund‖ means (2) One straight line across the cheque
(1) The fund exists for perpetuity. There is no ceiling (3) Two lines across the cheque making ‗X‘
on the amount to be collected or raised (4) Two transverse parallel lines on a cheque
(2) Investors are assured of dividends, capital (5) None of the above.
appreciation and safety of their investments
(3) A repurchase facility close to Net Asset Value 27. The following are main objectives of the SEBI :-
(NAV) (1) To protect interest of investors
(4) All of the above (2) To promote the development of security market
(5) None of the above (3) To regulate the security market
20. A ―Close ended fund‖ means (5) None of the above.
(1) The corpus is of fixed size with a definite
redemption period 28. ‗Capital market‘ can be divided into:-
(2) Listing on stock exchanges provides easy liquidity (1) Industrial securities market
(3) The market price is always below the Net Asset (2) Gilt edged market
Value (3) Personal securities market
(4) All of the above (4) Both 1 and 2
(5) None of the above (5) None of the above.
21. Maximum timeframe for collection of ―Outstation 29. Which of the following is correct statement in respect
cheques‖ drawn on state capitals/major cities/other of debit cards:-
locations are ………………days respectively. (1) Debit card facility is provided to those having
(1). 7, 10, 14 savings bank account/current account accounts of
(2). 10, 12, 15 individuals, firms and cooperates
(3). 10, 15, 20 (2) This facility is not extended to cash credit/loan
(4). 7, 14, 21 account holders
(5). 7, 10, 15 (3) Debit card is issued to all the persons who visit the
branch
22. Indian Financial Network [INFINET] is the :- (4) 1 and 2
55
(1) Communication backbone for the Indian Banking (5) All of the above.
and Financial sector
(2) Association of the employers of the banking 30. When it comes to the following term namely- IPO,
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and financial sector what do you mean by ―P‖?
a) Provisions (c) No change in the cost of credit and the demand for
b) Public borrowing
c) Private (d) Cost of credit has no relationship with demand for
d) Prudent borrowing
e) Pension (e) None of the above
31. In the term called as AMFI, what do you mean by 38. What is the main purpose of Open market
―M‖? operations?
a) Mutual (a) A fiscal device which assists Government
b) Money borrowing
c) Managing (b) A monetary measure to regulate quantity of
d) Miscellaneous money in circulation and the cash reserves of the
e) None of the above commercial banks
(AMF-Association of Mutual Funds in India) (c) A measure to counteract extreme trends in
business
32. Which of the following is included in (d) A measure to influence the balance of payments
―Bancassurance‖? position
a) Insurance policies issued by the banks in their (e) None of the above
names
b) Selling by a bank the insurance policies of its 39. What do you mean by ―Intangible assets‖?
ancillary insurance company (a) Preliminary expenses
c) Selling by a bank the insurance policies of any (b) Patents, copyright, goodwill
insurance company (c) Losses which cannot be reduced from share
d) All the above capital
e) None of the above (d) All of the above
(e) None of the above
33. When it comes to scheduled commercial banks,
which out of the following is not true?
a) Nationalized banks 40. Who covered the Export Credit Packing Advance
b) Regional Rural banks sanctioned to SSI exporters under the credit
c) Foreign banks guarantee scheme?
d) Private sector banks (a) DICGC
e) PACS & Local area banks (b) ECGC
(c) DRI
34. What do you mean by money laundering? (d) GIC
a) Washing the currency notes in a good laundery (e) None of the above
b) Converting money obtained through illegal
sources in to legal money 41. A customer is required to maintain adequate balances
c) Keeping the money in currency chests in his/her accounts in order to use his ____ card in
d) Sending excess cash to the other branch the merchant establishments?
e) None of the above (a) Smart Card
(b) Credit Card
35. Reserve Bank of India was established on 1st April, (c) Add-on Credit card
______in accordance with the provisions of Reserve (d) Debit Card
Bank of India act_________ (e) None of the above
a) 1935 – 1934
b) 1934-1935 42. Among the given option, which is not a service
c) 1935-1936 delivery channel for the Bank services?
d) 1937-1938 (a) ATM
e) All the above (b) Extension counters of a Bank
(c) Clearing House
36. To control inflationary situation in the economy, RBI (d) M-Banking
can increase one or more of these monetary tool? (e) Internet Banking
a) CRR-SLR-Bank Rate
b) SLR-CRR-Base Rate 43. The term ―HNI‖ used in banking parlance means
c) CRR-SLR-Repo Rate _____?
d) CRR-SLR-Reverse Repo Rate (a) Highly Negative Individual
e) CRR-SLR-Benchmarking PLR. (b) High Net-worth Individual
(c) High Networked Individual
37. If the Bank rate is increased and rest all other things (d) High Nuisance Individual
being equal, what will result into ____? (e) None of the Above
(a) A decline in the cost of credit including greater and
44. What is the ―USP‖ in a Savings Bank account of a
56
the demand for borrowing

(b) An increase in the cost of credit discouraging Bank over another Bank?
demand for credit (a) Higher rate of interest
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(b) Low risk transaction
(c) Banking channels and branches (b)Rs 50 crore
(d) Easy to operate (c)Rs 85 crore
(e) None of the Above (d) Rs 100 crore
(e) None of these
45. A ―Lien‖ is
(a) Transfer of ownership to the lender 52. Effective from 15th April, 1980, how many banks with
(b) a right of a person to retain the goods which is demand and time liabilities exceeding 200 crore were
in his possession, belonging to another person, nationalized?
until claim or dues attached to it are fully satisfied (a) five
or paid or discharged (b) four
(c)Banker‘s right to retain the FOR until loan is repaid (c) six
(d) all of the above (d) ten
(e) None of these (e) None of these
46. The term ‗Moral suasion‘ refers to 53. The first public sector bank to issue capital to public is
(a)The banker‘s duty of secrecy as regards the affairs (a) Corporation bank
and accounts of his customers (b) Indian overseas bank
(b)Moral duty of a borrower to deal with only one bank (c) Oriental bank of commerce
(c)The advice given by Reserve bank to (d) Punjab national bank
banks/financial institutions in the matter of their (e) None
lending and other operations with the objective
that they might implement or follow 54. Often, we read in the newspapers that several Indian
(d) All of the above companies are taking the FCCB route to raise capital.
(e) None What does the term FCCB stand for?
(a) Foreign Currency Convertible Bond
47. Who can open various types of non-resident (b) Foreign Convertible Credit Bond
accounts? (c) Financial Consortium and Credit Bureau
(a) Persons of Indian Nationality of person of Indian (d) Future Credit and Currency Bureau
origin residing outside India (NRI/PIO) (e) None of these
(b) Persons of foreign nationality or origin residing
inside India (OCI) 55. LAF is an indirect instrument of monetary policy,
(c) Firms, companies and other organization resident which is used by RBI to regulate the liquidity in
outside India banking system. ‗LAF‘ stands for?
(d) All of the above (a) Liquidity Adjustment Facility
(e) None (b) Liquidity Account Facility
(c) Liquidity Allotment Facility
48. FCNR (banks) accounts are maintained in the form of (d) Long Adjustment Facility
(a) Saving accounts (e) None of these
(b)Current accounts
(c)Term deposits 56. On the basis of which commission was RBI
(d) All of the above established?
(e) None (a) Hilton Young Commission
(b) British Commission
49. The term ‗Ways and Means‘ advances refer to (c) Federal Commission
(A) The temporary advance made to the (d) Federation Commission
government by its bankers to bridge the internal (e) None of these
between expenditure and the flow of receipts of
revenue 57. ‗CAMELS‘ is a type of Bank Rating System. In
(B) The advance given by the banks to the poorest of CAMELS, what does ‗C‘ stand for?
the society (a) Currency
(C) Lending made under PMRY scheme (b) Compensation
(D) all (c) Capital Adequacy
(E) None (d) Capitalization
(e) None of these
50. ―Factoring‖ is
(a) a means of financing traders and 58. Which among the following is correct?
manufactures by taking over their receivables (a) Capital market provides long term source of
(b) a means of providing post-shipment finance to finance
exporters (b) Recession in the industrial sector in India is
(c) a type of agriculture financing normally due to a fall in exports
(d) none (c) Ways and means advances given by RBI
(e) all (d) Exchange rate is fixed by RBI
57
(e) All of the above

51. On 19th July 1969, 14 banks were nationalized, these
banks had deposits of more than 59. Which of the statements mentioned below is/are
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(a)Rs 25 crore correct?
1. T-bills are issued by RBI 66. Rural Infrastructure Development Fund (RIDF) is
2. T-bills are short-term money market financed by:
instruments (1) Selected group of Public Sector Banks
3. T-bills cannot be purchased by a resident of (2) Ministry of Rural Development
India (3) Reserve Bank of India
(a) All are correct (4) NABARD
(b) 1 & 3 are correct (5) None of the above
(c) Only 2 is correct
(d) Only 3 is correct 67. Bank holidays under Section 25 of the Negotiable
(e) None of these Instruments Act, 1881 are declared by:
(1) State Government for the respective State
60. In India, which among the following is/are a part of (2) Banking Operations Department
Legal Tender Money? (3) Central Government
(a) Both coins and currency notes (4) RBI
(b) Both coins and bank drafts (5) None of the above
(c) Both currency notes and SDRs
(d) Only currency notes issued by RBI 68. The regional Rural Banks are sponsored by
(e) None of these 1) Unit Trust of India
2) Reserve Bank of India
61. In TRIPS, what does ‗I‘ stand for? 3) Life Insurance Corporation of India
(a) Intellectual 4) NABARD
(b) Information 5) Any Scheduled Commercial bank
(c) Indian
(d) Infra 69. When it comes to the following term – FPO, what do
(e) None of these you mean by ―F‖?
(TRIPS: Trade Related Intellectual Property Rights) a) Further
b) Facility
62. A commercial paper is c) Favour
(1) A paper issued by Reserve Bank of India an trade d) Future
and commerce e) None of the above
(2) An unsecured money market instrument
issued in the form of promissory note 70. Rise in inflation rate leads to decline in ______?
(3) A document issued by IDBI for seeking refinances (a) Interest rate
facility from Reserve Bank India (b) Raise in the deposits in the banks
(4) All of the above (c) Decrease the real interest rate
(5) None of the above (d) Raise the credit growth by banks
63. Primary market
(1) Is the new issues market where companies 71. CASA is basically the combination of Current account
issue new securities to the investors. and saving account deposits with a Bank. Why do the
(2) Is the place where only primary dealers may Banks put greater emphasis on mobilizing a high
transact business CASA ratio?
(3) Signifies the market where only long-term bonds (a) In order to fulfill RBI stipulation for it
are traded (b) It helps reduction in average cost of funds
(4) Comprises of stock exchanges, banks and (c) These are stable deposits
financial institutions dealing in primary securities (d) These help Banks maintain a healthy asset-liability
(5) None of the above ratio
(e) None of the Above
64. Which of the following would fall under the category of
retail banking? 72. When a cheque is drawn on a bank, the bank is called
(1) Home Loans the _______?
(2) Credit Cards (a) Payee
(3) Personal Loans (b) Drawee
(4) Car Loans (c) Drawer
(5) All of these (d) Endorsee
65. ―Micro Credits‖ are loans:
(1) Granted to distressed persons (other than 73. Central & State Government avails of a temporary
farmers) to pre-pay their debt to non-institutional financial assistance from Reserve Bank of India. This
lenders against appropriate collateral or group type of finance is called _______?
security (a) Overdraft
(2) Not exceeding Rs. 50,000 per borrower provided (b) Temporary loan
58
by banks (c) Short term finance

(3) Both (1) and (2) (d) Ways and Means advance
(4) None of the above (e) None of the above
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74. ―Garnishee order‖ is issued by ________? (a) Two crop seasons
(a) Judgement Debtor (b) Two quarters,
(b) Judgement Creditor (c) Two half- years
(c) Judgement Debtor‘s Debtor (d) Whichever is less
(d) Judgement Creditor's Creditor (e) None of the above
83. For filing and resolving customer complaints the
75. What do you mean by ―C‖ in the term called as banking Ombudsman
FMCG? (a) Charges a fee of 500/-
a) Customer (b) Does not charge any fee
b) Consumer (c) Charges a fee of 1500/-
c) Creditor (d) Charges a fee of 1000/-
d) Country (e) None of these
e) None of the above
84. When it comes to money market instruments, which
76. IFSC in a cheque means: among the following is not true?
a) Indian Financial System Code a) Treasury bills
b) It has 11 digits alpha numeric code b) Term money
c) First 4 digits represent Bank Name c) Certificate of deposits
d) This code is used in remitting funds through RTGS d) Corporate securities
and NEFT e) Commercial paper
e) All the above
85. The capital markets regulatory authority has
77. ―Customer Day‖ in the bank is on and customers are supervision over:
allowed to meet the top officials of the bank on this a) Stock exchanges
day in every month: b) Foreign institutional investors
a) 5th c) Equity and debt raisers
b) 10th d) Mutual funds
c) 15th e) All the above
d) 30th
e) Any of the above dates 86. Urban cooperative banks are controlled
by______________and _________________
78. Banking Ombudsman services are available to: a) State government-RBI
a) All Scheduled Commercial Banks b) NABARD – RBI
b) Regional Rural Banks c) SEBI – RBI
c) Scheduled Primary Co-operative Banks d) Central government – NABARD
d) Only a & c e) NABARD – state governments
e) All the above
87. The sponsorship between State government, central
79. Who amongst the following was never a Governor of government and sponsor bank is in the ratio of
the RBI? _________ in respect of Regional Rural Banks in the
(1) Bimal Jalan country:
(2) Y.V. Reddy a) 15-50-35
(3) Arup Roy Chodhury b) 50-35-15
(4) D.D. Subbarao c) 35-15-50
(5) Dr. Monmohan Singh d) 35-50-15
e) 15-35-50
80. Which of the following is the name of a private sector
Bank in India? 88. ―Certificates of Deposits‖ have to be of a minimum
(1) IDBI Bank value of __________?
(2) Axis Bank (a) Rupees 1 lakh
(3) Corporation Bank (b) Rupees 10 lakh
(4) UCO Bank (c) Rupees 25 lakh
(5) EXIM Bank (d) Rupees 1 crore
81. Which of the following is the name of the organization
specifically to develop small scale industrial sector in 89. The money lent for more than one day; however, not
our country? more than fifteen days is called as:
(a) NABARD a) Call money;
(b) SEBI b) Notice money;
(c) SIDBI c) Term money;
(d) AMFI d) Commercial paper;
59
(e) None of the above e) None of the above

82. A loan granted for short duration crops would be
90. Where is the headquarters of ―Society for worldwide
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treated as NPA, if the installment of principal or

Interbank Financial Telecommunication – SWIFT‖?
interest thereon remains overdue for
a) New York 98. ________ is the organization that maintains the
b) Los Angels borrower‘s history in India & is the oldest credit
c) Brussels information company of India
d) Hague (a) CRISIL
e) None of the above (b) CIBIL
(c) CARE
91. Cheque truncation means: (d) RBI
a) Tearing a cheque into two or more pieces (e) SEBI
b) Sending the photostat copy of a cheque in
collection 99. What does the term Open Market Operations refer to?
c) Using the electronic image of a cheque (a) Selling of equities in the open market
d) Keeping the Photostat copy of a cheque with (b) Selling of commodities in the open market
collecting bank before sending the original cheque to (c) Buying and selling of government securities in
the drawee branch the open market
e) None of the above (d) Buying and selling of products in the wholesale
market
92. The stock exchange pertaining to BSE is sensex and (e) None of these
NSE is nifty and in the case of Tokyo in Japan
a) Simix; 100. RBI has introduced ―Marginal Standing Facility‖ with
b) Nikkei; the objective of:
c) Mibtel; (a) Controlling Inflation
d) Bovasta; (b) Containing instability in long term inter-bank rates
e) None of the above (c) Containing instability in the overnight inter-
bank rates
93. Purchasing the securities at one market and selling (d) All of the above
the same securities at another market simultaneously (e) None of the above
is termed as:
a) Arbitrage; 101. ________ are the beneficiaries of the ―Reverse
b) Forfaiting; Mortgage Scheme‖.
c) Spread; (a) Government employees
d) Factoring; (b) Senior citizens
e) Advancing (c) Unemployed persons
(d) Persons of BPL category
94. The returned non-resident Indians are permitted to (e) Hindu Undivided Family (HUF)
open the following accounts:
a) Non-resident external account; 102. When it comes to the term called as ―OTCEI‖, what do
b) Non-resident ordinary account; you mean by ―E‖?
c) RFC account; a) Exchange
d) FCNR account; b) Environment
e) None of the above c) Environment
d) Entitlement
95. The Lead Bank Scheme was introduced in the year e) Enlistment
_____? (OTCEI-Over-The-Counter Exchange of India)
(a) 1968
(b) 1969 103. What do you mean by the term called as ―DRT‖, when
(c) 1974 it comes to recovery of bank dues Or NPA?
(d) 1976 a) Debt Recovery Tribunal
(e) None of the above b) Debtor recovery tribunal
c) Debt reminder tribunal
96. The one-rupee note bears the signature d) Debt recovery tariff
of____________. e) Delhi Road transport
(a) RBI Governor
(b) Deputy Governor 104. External commercial borrowings is a part of
(c) Finance Secretary a) Balance of payment
(d) Finance Minister b) Balance of trade
(e) None of these c) Current account
d) Capital account
97. If a customer does not get a satisfactory response to e) None of the above
his grievance from the bank within _____ days, then
he can approach the Banking Ombudsman. 105. Hypothecation is applicable in the case of _____?
(a) 60 (a) Movable goods
(b) 90 (b) Immovable property
60
(c) 30 (c) Book debts

(d) 15 (d) Corporate guarantee
(e) 25 (e) None of the above
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106. In CDR ―R‖ stands for _______.
A. Ratio 114. If a country is having more exports than imports in
B. Restructuring value terms, it can be said that the country is having:-
C. Reserve A. Deficit under BOP
D. Regulation B. Deficit under BOT
E. Regeneration C. Surplus under BOT
D. Surplus under BOP
107. Which of the following is a type of short term loan E. BOP crisis
provided to companies to fulfill their working capital
requirements? 115. If a bank‘s risk-weighted assets equal $100,000,000,
A. Cash Credit what is this bank‘s common equity requirement plus
B. Overdraft the capital conservation buffer, according to Basel III?
C. Collateral A. $4,500,000.
D. Advance B. $6,000,000.
E. None of these C. $7,000,000.
D. $8,500,000.
108. Which of the following are the funds in which E. $9,000,000.
investor‘s type is Pension fund, endowment fund, high
net worth individuals? 116. Which one of the following is not a source of fund
A. Mutual Fund available to banks Pre-shipment Credit in Foreign
B. Hedge Fund Currency (PCFC) Scheme?
C. Debt Fund A. EEFC A/cs
D. Hybrid Funds B. NRE A/cs
E. Money Market Fund C. RFC A/cs
D. FCNR(B) A/cs
109. Fixed Interest Government Securities traded on Stock E. Escrow A/cs
Exchanges do not include Treasury bills are known
as 117. An appreciation of the Rupee relative to the US Dollar
A. Collateral Security would be expected to have which of the following
B. Equity Securities effects?
C. Gilt Edged Securities A. Increase US exports to India
D. Foreign Securities B. Increase US imports from India
E. Commercial Securities C. Raise the cost to Americans for Indian imports
D. Create Balance of Payments surplus for India
110. DIPP is the nodal agency in the field of foreign E. Create Balance of payments surplus for USA
investments in India. What is the full form of DIPP?
A. Department of Industry Policy and Promotion 118. Which one of the following is not a Current account
B. Department of Innovation Policy and Promotion transaction (transaction other than a capital account
C. Department of Industrial Policy and Progress transaction)?
D. Department of Industrial Policy and Partnership A. Imports payables
E. None of these B. Exports receivables
C. Insurance
111. Items of trade that have a physical existence and can D. Dividend
actually be seen are known as: E. External Commercial Borrowings (ECB)
A. Physical trade
B. Visible trade 119. Whenever RBI does some open market operation
C. Hard trade transactions, actually it wishes to regulate which of
D. Obvious trade the following?
E. White Trade A. Inflation
B. Liquidity in economy
112. A currency that has decreased in foreign exchange C. Borrowing powers of the banks
value relative to a floating rate currency has D. Flow of foreign direct investments;
________. E. None of the above
A. Revalued
B. Appreciated 120. Which of the following policies of the financial sectors
C. Devalued is basically designed to transferring local financial
D. Depreciated assets into foreign assets freely and at market
E. Deteriorated determined exchange rates?
A. Capital account convertibility
113. The drop in value of a currency pegged to gold or B. Financial deficit management
another currency is known as ________. C. Minimum support price
A. Revaluation D. Restrictive trade practices
61
B. Depreciation E. None of these

C. Deterioration 121. Which is the monitoring and reviewing authority
D. Devaluation regarding fair practices code as per recent annual
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E. Deregulated policy statement of Reserve Bank of India?
A. Banking codes and standards Board of
India(BCSBI) 129. Which of the following is not considered a money
B. Banking Ombudsman(BO) market instrument?
C. Institute for development & Research in banking a) Treasury bills
technology(IDRBT) b) Commercial Paper
D. Debt recovery tribunal(DRT) c) Certificate of Deposit
E. None of the above d) Shares and bonds
e) Repurchase Agreement
122. The process of transformation of physical shares,
commercial paper or certificate of deposit into 130. Interest on saving bank account is now calculated by
electronic form is called as: banks on __
A. Electronic clearing service a) Minimum balance during the month
B. Electronic securitization b) Minimum balance from 7th to last day of the
C. Share truncation month
D. Dematerialization c) Minimum balance from 10th to last day of the
E. None of the above month
d) Maximum balance during the month
123. An instrument representing ownership interest in e) Daily product basis for the closing day
securities of a foreign issuer is referred to as……….. balance
A. An ownership certificate
B. A depository receipt 131. When the rate of inflation increases?
C. An ownership receipt a) Purchasing power of money increases
D. External commercial borrowing b) Purchasing power of money decreases
E. None of the above. c) Value of money increases
d) Purchasing power of money remains unaffected
124. 'Subprime lending' is a term applied to the loans e) Amount of money in circulation decreases
made to..............
a) Those borrowers who do not have a good 132. What is the full form of ‗FINO‘ a term we see
credit history frequently in financial newspapers?
b) Those borrowers who have a good credit history a) Financial Investment Network and Operations
c) Those borrowers who do not have a good debit b) Farmers Investment in National Organization
history c) Farmers Inclusion News and Operations
d) Those borrowers who have a good debit history d) Financial Inclusion Network and Operations
e) None e) None of these
125. Which of the following is a receipt, declaring 133. 100 Basis Points (bps) = ………%
ownership of shares of a foreign company, which can (a) 1 %
be listed in India and traded in rupees? (b) 0.1 %
a) ADR (c) 0.01 %
b) GDR (d) 0.001 %
c) IDR(Indian Depository Receipt) (e) 0.0001 %
d) EDR
e) None of these 134. Bank like functions performed by non-bank financial
entities on entities outside the banking system is
126. Micro credit concentrates on __ called …………
a) Small loans (a) Shadow Banking
b) Women (b) Narrow Banking
c) Rural areas (c) Ethical Banking
d) Poor People (d) Brick & Mortar Banking
e) All of these (e) Unit Banking
127. Equity share is also known as __ 135. A list of all of a country‘s international transactions for
a) Shareholder equity a given time period, usually one year is called…….
b) Share Capital (a) Balance of Trade (BOT)
c) Stockholder equity (b) Balance of Payment(BOP)
d) Net worth (c) Trade Deficit
e) All of the above (d) CAD
(e) None
128. In order to promote no frills accounts as part of basic
banking, the Reserve Bank of India, in August 2012, 136. A company shall be eligible to issue CP (commercial
advised banks to rechristen it as __ Paper) provided the Tangible (i.e. Assets that have
a) Basic Saving Account Physical form or which can be easily converted into
62
b) Basic Deposit Account cash) net worth of the company, as per the latest
c) Basic Account audited balance sheet, is ……….
d) Basic Savings Bank Deposit Account (a) Not less than Rs.500 Crore
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e) None of the above (b) Not less than Rs.100 Crore
(c) Not less than Rs.25 Crore c) Linguistic liability Participation
(d) Not less than Rs.4 Crore d) Limited lasting participation
(e) None e) None
137. 50 Paisa coin shall be Legal tender of any sum not 145. Increase in Fiscal deficit leads to
exceeding a) No change in BOP
(a) Rs.5 b) Increase in BOP
(b) Rs.10 c) Reduction in BOP
(c) Rs.100 d) A & B
(d) Rs.500 e) None
(e) Rs.1000
146. Which of the following is not a characteristic of Fiat
138. The Current base year for WPI & CPI are……….& Money?
………Respectively a) It is created & issued by the state
(a) 2010-11 & 2010 b) It is inconvertible by law
(b) 2010-11 & 2012 c) It is a legal tender
(c) 2012-15 & 2012 d) Its value as a commodity is as great as its value
(d) 2011-12 & 2010 as money
(e) None e) Its value only because of government regulation or
law
139. The basic motto behind declaration of some zone as
SEZ (Special Economic Zone) is to 147. In case of a demand draft (DD) is issued, the liability
(a) Increase foreign investment of the bank will be ……………
(b) Development of infrastructure a) Demand liability
(c) Job opportunities b) Time liability
(d) Increase the income level of people c) Current liability
(e) All of the above d) Long term liability
e) None
140. The statement ―Pay Mr.X or Order, Notice of dishonor
waived‖ is a………. 148. If a credit card is lost, the card member should call up
(a) Special Endorsement the customer helpline number and he says his
(b) Facultative Endorsement request for deactivating the card. This is called……
(c) Restrictive Endorsement a) Hotlisting
(d) Qualified Endorsement b) Crosslisting
(e) Partial Endorsement c) Shortlisting
d) Blocklisting
141. According to "Micro small medium enterprise e) None
development Act – 2006 (MSME Act – 2006)"
investment limit for micro enterprise in manufacturing 149. Which of the following is not a negotiable instrument?
sector is……… a) Cheque
(a) Less than 10 Lakh b) Draft
(b) Less than 25 Lakh c) Bills of Exchange
(c) Less than 50 Lakh d) Crossed Cheque
(d) Less than 1 Crore e) None
(e) None
150. Who is primarily responsible in case of Bills of
142. SDR the currency of the IMF, is in the form of- Exchange?
(a) Paper Currency A. Drawer
(b) Gold B. Acceptor
(c) Silver & Gold both C. Drawee
(d) Book keeping entry only D. Maker
(e) None E. None
143. Devaluation of currency results in 151. If a bank fails to maintain SLR, it has to pay penal
a) Increased export & import interest of …….
b) Trade deficit A) Bank rate+ 2%
c) Increased export & improvement of BOP B). Repo rate+ 2%.
d) Increased import & foreign reserve deficiency C). Bank rate+ 3%
e) None D). Repo rate+ 2%
E). None
144. Indian company having FDI will be permitted to make
downstream investment in LLPs. What is the full form 152. The terms ‗bull‘ and ‗bear‘ are used in –
63
of LLP? (LLP is a partnership in which all partners (a)Planning Commission

have a limited liability)
(b)Stock Exchange
a) Limited language performance
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b) Limited Liability Partnership (c)Sale Tax Department

(d)Income Tax Department
(e)None of these d) Brick & Mortar Banking
e) Unit Banking
153. ASBA is a mechanism for subscribing to application in
Initial Public Offerings (IPOs). ASBA stands for 161. Virtual banking is also called………
(a) Application Supported by Blocked Amount a) Ethical Banking
(b) Acquired Shares by Blocked Amount b) Internet banking
(c) Application Submitted by Blocked Amount c) Brick & mortar banking
d) Branch Banking
(d) Application Supported by Balance Account
e) Pseudo Banking
(e) Application Supported by Blocked Account
162. A list of all of a country‘s international transactions for
154. The JSW Steel has sought shareholders‘ approval to a given time period, usually one year is called…….
raise Rs. 4,000 cr through QIP. What does the term a) Balance of Trade(BOT)
QIP stands for? b) Balance of Payment(BOP)
(a) Qualified Industrial Placement c) Trade Deficit
(b) Qualified International Placement d) CAD
(c) Qualified Institutional Purchase e) None
(d) Qualified Institutional Placement
(e) None of these 163. A company shall be eligible to issue CP (commercial
Paper) provided the Tangible (i.e. Assets that have
Physical form or which can be easily converted into
155. CBS stands for ‗CORE Banking Solutions‘. CORE
cash) net worth of the company, as per the latest
stands for……… audited balance sheet, is ……….
a) Concentrated Online Real-time Exchange a) Not less than Rs.500 Crore
b) Centralized Offline Real-time Exchange b) Not less than Rs.100 Crore
c) Centralized Online Real-time Examine c) Not less than Rs.25 Crore
d) Centralized Online Real-time Exchange d) Not less than Rs.4 Crore
e) None of these e) None
156. The largest network of shared ATM is………………… 164. A CASA Account is a
a) ICICI a) Only Term Deposit
b) SBI b) Only Demand Deposit
c) Bank of Baroda c) Both Demand & Term Deposit
d) NFS d) Flexi Deposit
e) NPCI e) Pigmy Deposit
157. The correct sequence of Identification mark on Indian 165. The Headquarter of SEATO (South-East Asia Treaty
Bank notes of Denomination 1000, 500, 100, 50 & 20 Organization) is ……….
respectively is……… a) Nairobi
a) (♦), (●), (▲), ( ■ ), ( ▄ ) (Correct) b) Bangkok
b) (♦), (▲), (●), ( ▄ ), ( ■ ) c) Dubai
c) (♦), (▲), (●), ( ■ ), ( ▄ ) d) New York
d) (♦), (●), (▲), ( ▄ ), ( ■ ) e) London
e) None
166. DONG is the currency of
158. ATM related to „Share Transaction‟ &„E-Commerce‟ (a) Vatican
are ………..&…………Label ATM respectively? (b) Egypt
a) Yellow & Green (c) Vietnam
b) Orange & Yellow (d) Tanzania
c) Green & Pink (e) Swedish
d) Brown & Green
e) None 167. Foreign Trade Policy of India announced by
(a) Ministry Of Commerce
159. To open a Demat account, one needs to approach the (b) FIPB
a) SEBI (c) DIPP
b) Respective stock Exchange
(d) SEBI
c) Depository Participants (DPs)
(e) Govt. of India
d) Any scheduled Commercial bank
e) None
168. The term ―Underwriting‖ relates to
(a) Primary Market
160. Bank like functions performed by non-bank financial
entities on entities outside the banking system is (b) Secondary Market
called ………… (c) Perfect Competition Market
64
a) Shadow Banking (d) Both (a) & (b)

b) Narrow Banking (e) None
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c) Ethical Banking
169. What is ISO 9362 is related to in context with
Banking? 177. Call Money related to
(a) RTGS Transfers a) Share Market
(b) NEFT Transfers b) Govt. securities
(c) SWIFT Transfers c) Bank deposits
(d) All of them d) Post office deposits
(e) None of them e) None
170. M3 is……… 178. NAMA (Non Agricultural Market Access) related to

(a) M1 + Demand deposit of Post office a) WTO
(b) M1 + Time deposit with banks b) UNCTAD
(c) M + Others deposit with RBI c) IMF
(d) M1 + Demand deposit of banks d) WEF
e) WB
(e) None
179. Which of the following organization maintain RIDF
171. "Cheque Truncation System–2010 (CTS–2010)" is (Rural Infrastructure Development Fund)?
compliant to the requirement of the Information a) RBI
Technology Act – b) IDBI
(a) IT Act-2013 c) NABARD
(b) IT Act-2000 d) SIDBI
(c) IT Act-2014 e) RRB
(d) IT-Act-2002
(e) None 180. Which of the following formulates Fiscal Policy?
a) Finance commission
172. State Bank of India (SBI) was established on the b) RBI
recommendation by which committee c) Ministry of finance
(a) Gorewala committee d) Planning commission
(b) Raja Challaiha committee e) Ministry of Commerce
(c) B S Sekhar committee
(d) Kelkar committee 181. Indian company having FDI will be permitted to make
(e) No Committee recomended downstream investment in LLPs. What is the full form
of LLP? (LLP is a partnership in which all partners
have a limited liability)
173. A high rate of inflation tends to worsen Balance of
a) Limited language performance
payments (BOPs) because b) Limited Liability Partnership
(a) Prices of imported goods rise
c) Linguistic liability Participation
(b) Prices of exported goods rise making exports less d) Limited lasting participation
competitive e) None
(c) Prices of imported goods falls and hence more is
imported 182. The nature of convertibility of Indian Economy is
(d) Prices of exported goods fall and hence fewer a) Convertibility at capital account
amounts is obtained in terms of foreign exchange b) Convertibility at current account
(e) None c) Convertibility at trade account
d) Free convertibility
174. An increase is CRR by RBI leads to e) None
(a) Decrease in lendable resource
(b) Increase in lendable resource 183. Increase in Fiscal deficit leads to
(c) Decrease in deposit a) No change in BOP
(d) Increase in deposit b) Increase in BOP
(e) None c) Reduction in BOP
d) A & B
e) None
175. Global Competitiveness report is published by
(a) WHO
184. Which of the following is not a characteristic of Fiat
(b) WEF
Money?
(c) WORLD BANK a) It is created & issued by the state
(d) UNCTAD b) It is inconvertible by law
(e) WTO c) It is a legal tender
d) Its value as a commodity is as great as its
176. In India national income is estimated by- value as money
(a) Planning commission e) Its value only because of government regulation
65
(b) Indian statistical institute or law

(c) Central statistical office
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(d) National sample survey organization 185. If an Indian citizen renting a flat in London it is to be
(e) None included in ….
a) GDP of India 193. According to Banking Regulation Act, Nationalized
b) GDP of London bank can release a share of total paid up capital up to
c) GNP of India maximum ceiling of …
d) GNP of London a) 40%
e) None b) 49%
c) 51%
186. Who among the following acts as agent of Govt. of d) 73%
India in respect of her membership of IMF? e) 100%
a) RBI
b) Ministry of finance
c) NABARD 194. According to Banking Regulation Act, RBI can fix SLR
d) SEBI up to the ceiling of……..
e) None a) 40%
b) 50%
187. Index RESIDEX is associated with…… c) 60%
a) Share prices d) 75%
b) Mutual fund prices e) None
c) Prices inflation index
d) Land prices(The National Housing Bank 195. In case of a demand draft (DD) is issued, the liability
launched RESIDEX index for tracking prices of of the bank will be ……………
residential properties in India) a) Demand liability
e) None b) Time liability
c) Current liability
188. In the case of FCNR Accounts the payment of interest d) Long term liability
is effected in….. e) None
a) Indian Rupee
b) Only in Pound 196. ‗A customer is a person who maintains an account
c) Same currency in which deposit stands with a Bank‘ this definition of the customer is as per
d) Yen the……..
e) None a) Banking Regulation Act-1949
b) Negotiable Instrument Act-1881
189. Which of the following bank considered as “soft loan c) RBI Act-1934
window?” d) KYC Guidelines of RBI
a) IMF e) None
b) IBRD
c) IDA(International Development Association) 197. Which of the following is not a negotiable instrument?
or World Bank a) Cheque
d) IFC b) Draft
e) None c) Bills of Exchange
d) Crossed Cheque
190. Parallel economy is also referred as e) None
a) Grey market
b) Black market 198. Which of the following is not a negotiable instrument?
c) Black economy a). Share warrant
d) Blue economy b). Dividend warrant
e) None c). Dock warrant
d). Share warrant
191. Which of the following known as ‗Pacific Rim trade e). both (c) & (d)
IBSA‘?
a) APEC 199. Which of the following is NOT a subsidiary of RBI
b) ASEAN a) National Housing Bank
c) ECGL b) Deposit Insurance & Credit Guarantee
d) EXIM Bank Corporation
e) SAARC c) Bharatiya Reserve Bank Note Mudran Private
Limited
192. Which of the following doesn‘t operate kisan credit d) Export Credit & Guarantee Corporation
card (KCC) scheme? e) None of these
a) NABARD
b) Co-operative banks 200. FATCA stands for
c) RRBs a) Foreign Account Tax Compliance Act
d) Scheduled commercial banks b) Foreign Account Trade Company Act
e) None c) Financial Account Tax Compliance Act
66
d) Fiscal Account Tax Compliance Act

YOUR MENTOR e) None of these
(www.gcnayak.blogspot.com)
Page
Appendix-1
COUNTRY-CAPITAL-CURRENCY(C-C-C)
AFRICAN COUNTRIES 28. Qatar -Doha -Riyal
29. Saudi Arabia -Riyadh -Saudi Riyal
1. Algeria- Algiers -Dinar 30. Singapore-Singapore-Singapore Dollar
2. Angola-Luanda -Kwanza 31. South Korea -Seoul -South Korean Won
3. Cameroon -Yaoundé -CFA franc 32. Sri Lanka –Sri Jayawardene pura-Kotte -Sri Lankan
4. Egypt -Cairo -Egyptian pound Rupee
5. Ethiopia -Addis Ababa -Birr 33. Syria -Damascus -Syrian Pound
6. Gambia -Banjul -Gambian Dalasi 34. Taiwan -Taipei -New Taiwan Dollar
7. Ghana -Accra -Ghana Cedi 35. Tajikistan –Dushanbe-- Somoni
8. Kenya -Nairobi -Kenyan Shilling 36. Thailand- Bangkok -Baht
9. Liberia -Monrovia -Liberian Dollar 37. Turkey[Europe]-Ankara -Turkish Lira
10. Libya –Tripoli- Dinar 38. Turkmenistan –Ashgabat- Turkmen new Manat
11. Madagascar- Antananarivo -Malagasy Ariary 39. United Arab Emirates-Abu Dhabi- UAE Dirham
12. Mali -Bamako -CFA franc 40. Uzbekistan -Tashkent -Uzbekistan Som
13. Mauritius -Port Louis- Mauritian Rupee
14. Morocco- Rabat -Moroccan Dirham EUROPEAN COUNTRIES
15. Mozambique- Maputo –Mozambican Metical
16. Namibia -Windhoek -Namibian Dollar 1. Albania- Tirana -Lek
17. Nigeria -Abuja -Naira 2. Austria- Vienna- Euro
18. Rwanda -Kigali -Rwandan franc 3. Belarus (Europe) -Minsk -Belarusian Ruble
19. Seychelles- Victoria -Seychellois Rupee 4. Belgium- Brussels- Euro
20. Sierra Leone -Freetown -Leone 5. Bulgaria -Sofia -Lev
21. Somalia- Mogadishu- Somali Shilling 6. Croatia -Zagreb -Kuna
22. South Africa -Cape Town -South African Rand 7. Czech Republic -Prague -Czech Koruna
23. South Sudan- Juba- South Sudanese Pound 8. Denmark -Copenhagen -Danish Krone
24. Sudan -Khartoum -Sudanese Pound 9. Finland –Helsinki- Euro
25. Tanzania –Dodoma-(official) Tanzanian Shilling 10. France- Paris -Euro
26. Tunisia -Tunis -Tunisian Dinar 11. Germany -Berlin -Euro
27. Uganda -Kampala -Ugandan Shilling 12. Greece –Athens- Euro
28. Zambia -Lusaka -Zambian Kwacha 13. Hungary –Budapest- Forint
29. Zimbabwe -Harare -US Dollar 14. Iceland –Reykjavík- Icelandic Króna
15. Ireland -Dublin -Euro
ASIAN COUNTRIES 16. Italy -Rome -Euro
17. Latvia -Riga -Euro
18. Lithuania –Vilnius- Euro
1. Afghanistan- Kabul -Afghani
19. Luxembourg- Luxembourg- Euro
2. Bahrain –Manama- Bahraini Dinar
20. Malta -Valletta -Euro
3. Bangladesh- Dhaka- Taka
21. Monaco -Monaco -Euro
4. Bhutan -Thimphu –Bhutanese Ngultrum
22. Netherlands –Amsterdam- Euro
5. Cambodia -Phnom Penh -Riel
23. Norway -Oslo -Norwegian krone
6. China -Beijing -Renminbi (Yuan)
24. Poland -Warsaw -Zloty
7. Cyprus [Europe]-Nicosia -Euro
25. Portugal -Lisbon -Euro
8. Georgia [Europe]-Tbilisi- Lari
26. Romania -Bucharest -Romanian Leu
9. India-New Delhi-Rupee
27. Russia -Moscow -Russian Ruble
10. Indonesia- Jakarta -Rupiah
28. Serbia –Belgrade- Serbian Dinar
11. Iran-Tehran -Rial
29. Slovakia –Bratislava- Euro
12. Iraq -Baghdad -Iraqi Dinar
30. Spain –Madrid- Euro
13. Israel -Jerusalem -New Shekel
31. Sweden -Stockholm -Swedish Krona
14. Japan -Tokyo -Yen
32. Switzerland –Bern- Swiss franc
15. Kazakhstan -Astana -Tenge
33. Ukraine- Kiev -Ukrainian Hryvnia
16. Kyrgyzstan -Bishkek -Som
34. United Kingdom -London -Pound Sterling
17. Laos -Vientiane -Kip
35. Vatican City-Vatican City -Euro
18. Lebanon -Beirut -Lebanese Pound
19. Malaysia -Kuala Lumpur(official)-Ringgit
20. Maldives -Male -Maldivian Rufiyaa NORTH AMERICAN COUNTRIES
21. Mongolia -Ulaanbaatar -Togrök
22. Myanmar(Burma)-Nay Pyi Taw -Kyat 1. Bahamas –Nassau- Bahamian Dollar
23. Nepal -Kathmandu -Nepalese Rupee 2. Barbados -Bridgetown -Barbadian Dollar
3. Bermuda –Hamilton- Bermudian Dollar
67
24. North Korea -Pyongyang -North Korean Won

25. Oman -Muscat -Rial 4. Canada –Ottawa- Canadian Dollar
26. Pakistan- Islamabad -Pakistani Rupee 5. Cuba -Havana -Cuban peso
Page
27. Philippines -Manila -Philippine Peso 6. Jamaica -Kingston -Jamaican Dollar
7. Mexico -Mexico City- Mexican peso 7. Burkina Faso-Ouagadougou-CFA Franc
8. Nicaragua –Managua- Nicaraguan cordoba 8. Burundi-Bujumbura-Burundi Franc
9. Panama -Panama City- Panamanian balboa 9. Congo-Brazzaville-Congolese Franc
10. United States -Washington, D.C.-United States 10. Costa Rica-San Jose-Costa Rican colon
Dollar 11. Dominica-Roseau-Dollar
12. Eritrea-Asmara-Nakfa
SOUTH AMERICAN COUNTRIES 13. Estonia-Tallinn-Kroon
14. Guatemala-Guatemala City-Quetzal
1. Argentina -Buenos Aires -Peso 15. Guinea-Conakry-Guinean Franc
2. Bolivia –Sucre or La Paz -Boliviano 16. Guyana-Georgetown-Guyanese Dollar
3. Brazil -Brasília- Real 17. Kosovo-Pristina-Euro
4. Chile -Santiago -Peso 18. Kuwait-Kuwait city-kuwaiti dinar
5. Colombia -Bogotá -Peso 19. Lesotho-Maseru-Maluti
6. Ecuador- Quito -United States dollar 20. Macedonia-Skopje-Denar
7. Paraguay- Asunción -Guaraní 21. Moldova-Chisinau-Lek
8. Peru -Lima -Nuevo sol 22. Montenegro-Podgorica-Euro
9. Uruguay -Montevideo -Uruguayan peso 23. Samoa-Apia-Tala
10. Venezuela -Caracas -Venezuelan bolivar 24. Senegal-Dakar—CFA Franc
25. Vietnam-Hanoi-Dong
MISCELLANEOUS 26. Jordan-Amman-Jordanian dinar
27. Fiji –Suva- Fijian dollar
1. Armenia-Yerevan-Dram 28. New Zealand- Wellington -New Zealand Dollar
2. Australia- Canberra- Australian dollar 29. Honduras-Tegucigalpa-Lempira
3. Azerbaijan-Baku-Manat 30. Yemen-Sanna-Rial
4. Bahrain-Manama-Bahraini Dinar 31. Zimbabwe-Harare-Zimbabwean Dollar
5. Botswana-Gaborone-Pula
6. Brunei-Bandar Seri Begawan-Brunei Dollar
Note:
 The 9 countries which are members of EU but don‟t use EURO as currency are- UK, Bulgaria, Croatia, Czech Republic,
Denmark, Hungary, Poland, Romania & Sweden.
 The 4 countries which are NOT member of EU but use EURO as currency are- Andorra, Monaco, San Marino & Vatican
City.
 The following countries use EURO as currency- Belgium, Luxembourg, Netherland, Italy, France, Germany, Greece,
Ireland, Spain, Portugal, Austria, Finland, Slovenia, Cyprus, Malta, Slovakia, Estonia, Latvia & Lithuania.
 The following countries use DINAR as currency- Algeria, Bahrain, Jordan, Kuwait, Iraq, Libya, Serbia, Tunisia &
Macedonia.
 The following countries use POUND STERLING (Oldest Currency in the World) as currency- Alderney, Guernsey,
Ascension Island, Egypt, Lebanon, Saint Helena, Southern Sudan, South Georgia, Syria & UK.
 The following countries use PESO as currency- Cuba, Mexico, Argentina, Chile, Santiago & Philippines.
 The following countries use DOLLAR as currency- Antigua, Barbuda, Australia, Bahamas, Barbados, Belize, Brunei,
Canada, Dominica, EL Salvador, Fiji, Grenada, Guyana, East Timor, Ecuador, Palau, Panama, Jamaica, Kiribati, Liberia,
Namibia, Nauru, New Zealand, St Kitts & Nevis, St Vincent, Singapore, Surinam, Taiwan, Tuvalu, USA, & Zimbabwe.
POPULAR NATIONAL PARKS IN INDIA

1. Anamudi Shola National Park---Kerala 21. Gir Forest National Park ---Gujarat
2. Anshi National Park ---Karnataka 22. Gorumara National Park ---West Bengal
3. Balphakram National Park ---Meghalaya 23. Govind Pashu Vihar Wildlife Sanctuary ---
4. Bandhavgarh National Park ---Madhya Pradesh Uttarakhand
5. Bandipur National Park ---Karnataka 24. Great Himalayan National Park ---Himachal
6. Bannerghatta National Park---Karnataka Pradesh, UNESCO World Heritage Site
7. Betla National Park ---Jharkhand 25. Gugamal National Park ---Maharashtra
8. Bhitarkanika National Park ---Odisha 26. Guindy National Park ---Tamil Nadu
9. Bison (Rajbari) National Park ---Tripura 27. Gulf of Mannar Marine National Park ---Tamil Nadu
10. Blackbuck National Park ---Gujarat 28. Guru Ghasidas (Sanjay) National Park ---
11. Buxa Tiger Reserve ---West Bengal Chhattisgarh
12. Chandoli National Park ---Maharashtra 29. Hemis National Park ---Jammu and Kashmir
13. Clouded Leopard National Park ---Tripura 30. Hazaribagh National Park ---Jharkhand
14. Dachigam(10 Villages) National Park ---J & K 31. Inderkilla National Park ---Himachal Pradesh
15. Desert National Park ---Rajasthan 32. Indira Gandhi Wildlife Sanctuary and National Park
16. Dibru-Saikhowa National Park ---Assam ---Tamil Nadu
68
17. Dudhwa National Park ---Uttar Pradesh 33. Indravati National Park ---Chhattisgarh
18. Eravikulam National Park ---Kerala 34. Jaldapara National Park ---West Bengal
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19. Galathea National Park ---Andaman & Nicobar 35. Jim Corbett National Park ---Uttarakhand
20. Gangotri National Park ---Uttarakhand 36. Kalesar National Park ---Haryana
37. Kanha National Park ---Madhya Pradesh 70. North Button Island National Park ---Andaman and
38. KangerGhati National Park ---Chhattisgarh Nicobar Islands
39. Kasu Brahmananda Reddy National Park --- 71. Ntangki National Park ---Nagaland
Telangana 72. Orang National Park ---Assam
40. Kaziranga National Park ---Assam, 73. Pambadum Shola National Park ---Kerala
IndianRhinoceros, UNESCO World Heritage Site 74. Panna National Park ---Madhya Pradesh
41. Keibul Lamjao National Park ---Manipur, only 75. Papikonda National Park ---Andhra Pradesh
floating park in the world 76. Pench National Park ---Madhya Pradesh
42. Keoladeo National Park ---Rajasthan, UNESCO 77. Periyar National Park ---Kerala
World Heritage Site 78. Phawngpui Blue Mountain National Park ---
43. Khangchendzonga National Park ---Sikkim Mizoram
44. Khirganga National Park ---Himachal Pradesh 79. Pin Valley National Park ---Himachal Pradesh
45. Kishtwar National Park ---Jammu and Kashmir 80. Rajaji National Park ---Uttarakhand
46. Kudremukh National Park ---Karnataka 81. Nagarhole National Park ---Karnataka
47. Madhav National Park ---Madhya Pradesh 82. Rajiv Gandhi (Rameswaram) National Park ---
48. Mahatma Gandhi Marine National Park --- Andhra Pradesh
Andaman and Nicobar Islands 83. Rani Jhansi Marine National Park ---Andaman and
49. Mahavir Harina Vanasthali National Park --- Nicobar Islands
Telangana 84. Ranthambore National Park ---Rajasthan
50. Manas National Park ---Assam, UNESCO World 85. Saddle Peak National Park ---Andaman and
Heritage Site Nicobar Islands
51. Mandla Plant Fossils National Park ---Madhya 86. Salim Ali National Park ---Jammu and Kashmir
Pradesh 87. Sanjay National Park2 ---Madhya Pradesh
52. Marine National Park, Gulf of Kutch ---Gujarat 88. Sanjay Gandhi National Park ---Maharashtra
53. Mathikettan Shola National Park ---Kerala 89. Sariska Tiger Reserve ---Rajasthan
54. Middle Button Island National Park ---Andaman 90. Satpura National Park ---Madhya Pradesh
and Nicobar Islands 91. Silent Valley National Park ---Kerala
55. Mollem National Park ---Goa 92. Simbalbara National Park ---Himachal Pradesh
56. Mouling National Park ---Arunachal Pradesh 93. Sirohi National Park ---Manipur
57. Mount Abu Wildlife Sanctuary ---Rajasthan 94. Simlipal National Park ---Odisha
58. Mount Harriet National Park ---Andaman and 95. Singalila National Park ---West Bengal
Nicobar Islands 96. South Button Island National Park ---Andaman
59. Mrugavani National Park ---Telangana and Nicobar Islands
60. Mudumalai National Park ---Tamil Nadu 97. Sri Venkateswara National Park ---Andhra Pradesh
61. Mukundra Hills National Park ---Rajasthan 98. Sultanpur National Park ---Haryana
62. Mukurthi National Park ---Tamil Nadu 99. Sundarbans National Park ---West Bengal,
63. Murlen National Park ---Mizoram UNESCO World Heritage Site
64. Namdapha National Park ---Arunachal Pradesh 100. Tadoba National Park ---Maharashtra
65. Nameri National Park ---Assam 101. Valley of Flowers National Park ---Uttarakhand
66. Nanda Devi National Park ---Uttarakhand, 102. Valmiki National Park ---Bihar
UNESCO World Heritage Site 103. Vansda National Park ---Gujarat
67. Navegaon National Park ---Maharashtra 104. Van Vihar National Park ---Madhya Pradesh
68. Neora Valley National Park ---West Bengal
69. Nokrek National Park ---Meghalaya, UNESCO (Also memorize some important wildlife sanctuaries)
World Biosphere Reserve https://en.wikipedia.org/wiki/Wildlife_sanctuaries_of_India
BANKS, HEAD OFFICE & TAG LINES

(Short Cut-If name of the bank starts with Indian, then its HQ is at Chennai & If name of the bank ends with India, then its HQ
is at Mumbai except United Bank of India)
(A) 27 Public Sector Banks (Govt. share>50%) 11. IDBI Bank(Mumbai) – Banking For All, ―Aao Sochein
Bada, Bank ayesa Dost Jaisa
1. Allahabad Bank (Kolkata) - A Tradition of Trust, Har 12. Indian Bank(Chennai) – Your Tech- Friendly Bank
Kadam Aapke Sath. 13. Indian Overseas Bank(Chennai) – Good people to
2. Andhra Bank(Hyderabad) – Where India Banks grow with
3. Bank of Baroda(Vadodara) - India„s International Bank 14. Oriental Bank of Commerce(New Delhi) – Where
4. Bank of India(Mumbai) - Relationship beyond banking every individual is committed
5. Bhartiya Mahila Bank(New Delhi) – Empowering 15. Punjab National Bank(New Delhi) - The name you can
Women bank upon
6. Bank of Maharashtra(Pune)- One family one bank 16. Punjab & Sind Bank (New Delhi)– Where service is a
7. Canara Bank(Banglore) – Together We Can way of life
8. Central Bank of India(Mumbai) – Central To you Since 17. Syndicate Bank(Manipal)- Your Faithful And Friendly
1911 Financial Partner
69
9. Corporation Bank(Mangalore, Karnataka) – A Premier 18. UCO Bank(Kolkata) – Honours Your Trust
Public Sector Bank 19. Union Bank of India(Mumbai) – Good People to Bank
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10. Dena Bank(Mumbai) - Trusted Family Bank with
20. United Bank of India(Kolkata) – The Bank that begins 9. Barclays Bank(London, UK) - Fluent in finance
with “U” 10. DBS Bank(Singapore, Malaysia)- Living, Breathing
21. Vijaya Bank(Bangalore) - A friend you can bank on Asia
22. SBI(Mumbai) - With you all the way, Pure Banking
Nothing Else, The Nation„s banks on us, The banker (D) Insurance Companies:
to every Indian
23. State Bank of Bikaner & Jaipur(Rajasthan)- Leading 1. Life Insurance Corporation of India (LIC) (Mumbai) -
Innovations; simplifying banking Yogakshemam Vahamyaham
24. State Bank of Patiala(Punjab)- Blending Modernity 2. Max Life Insurance Company Limited - Aapke Sachhe
with Tradition Advisor
25. State Bank of Hyderabad(Hyderabad)- Modern, 3. New India Assurance Company Limited(NICL)
Innovative, Dependable (Mumbai) - India„s premier general insurance
26. State Bank of Mysore(Bangalore)- Working for a better company
tomorrow 4. SBI Life Insurance Company Limited - With Us, You„re
27. State Bank of Travancore(Thiruvananthapuram)- A Sure
Long Tradition of Trust 5. United India Insurance Company Limited(UIICL)
(Chennai) - Rest Assured with Us
(B) Private Banks: 6. Oriental Insurance Company Limited(New Delhi)-
Prithvi, Agni, Jal, Akash, Sabki Suraksha Hamare Pas
1. Axis Bank (formerly UTI Bank)(Mumbai) – Badhti Ka 7. Kotak Mahindra Old Mutual Life Insurance Limited -
naam Zindagi Faidey ka Insurance
2. Bandhan Bank(Kolkata)-"Aapka Bhala, Sabki Bhalai" 8. Max Newyork Life Insurance Company Limited - Karo
3. ICICI Bank(Mumbai) – Hum Hai Na, Khyal Apka Zyada ka Iraada
4. IDFC Bank(Mumbai)-"Hatke bank” 9. Apollo Munich Health Insurance- We know Healthcare.
5. HDFC Bank(Mumbai) - We understand your world 10. Future Generali Life Insurance - Ek Shagun Zindagi
indeed Ke Naam
6. Yes Bank(Mangalore, Karnataka)– Experience our 11. Aviva India Life Insurance - Kal par Control
Expertise 12. Tata AIA Life Insurance Company Limited - You click,
7. Federal Bank(Karnataka) - Your perfect banking partner we cover
8. IndusInd Bank(Mumbai)- We make money simple 13. ICICI Prudential Life Insurance Company Limited-
9. Kotak Mahindra Bank(Mumbai)- Let„s make money Zimmedari ka humsafar
simple 14. HDFC Standard life Insurance Company Limited - Sar
utha Ke Jiyo
(C) Foreign Banks: 15. Bajaj Allianz Life Insurance Company Limited - Jiyo
Befiqar
1. CITI Bank(New york,US) - Let„s get it done 16. Birla Sun Life Insurance Company Ltd-Muskurate
2. Standard Chartered Bank(London, UK) - Your Right Raho
Partner 17. General Insurance Corporation.(Mumbai)
3. HSBC Bank(London, UK)-The World„s Local Bank 18. The New India Assurance Co. Ltd.(Mumbai)
4. Royal Bank of Scotland(Edinburgh, Scotland)- Make it 19. PNB MetLife India Insurance Company Limited - Have
happen you met life today?
5. BNP Paribas(Paris, France) - The bank for a changing
world (E) Special Banks:
6. JPMorgan Chase Bank(Chicago, Illinois, US) - The right
relationship is everything 1. ECGC Bank (Mumbai) – You focus on exports. We
7. Deutsche Bank(Frankfurt, Germany) - A passion to cover the risks
perform 2. EXIM Bank(Export Import Bank of India)-(Mumbai)
8. Scotia Bank(Toronto, Ontario, Canada) - You„re richer
than you think
ORGANIZATIONS & HEADQUARTERS

1. UNO (United Nations Organization) (193 Member)----New York, USA
2. UNICEF (United Nations International Children‗s Emergency Fund) ---New York, USA
3. UNDP (United Nations Development Programme) ---New York, USA
4. UNEP (United Nations Environmental Programme) ---Nairobi, Kenya
5. UNCTAD (United Nations Conference on Trade & Development) ---Geneva, Switzerland
6. UNESCO (United Nations Educational, Scientific and Cultural Organization)---France, Paris
7. UNIDO (United Nations Industrial Development Organization)---Austria, Vienna
8. UNWTO (United Nations World Tourism Organization)---Spain, Madrid
9. UNU (United Nations University) ---Tokyo, Japan
10. UNRISD (United Nations Research Institute For Social Development) ----Switzerland, Geneva
70
11. UNICRI (United Nations Interregional Crime and Justice Research Institute)----Italy, Turin
12. UNSSC (United Nations System Staff College)----Italy, Turin
13. UNIDIR (United Nations Institute for Disarmament Research)----Switzerland, Geneva
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14. UNOCHA (Office for the Coordination of Humanitarian Affairs)----United States, New York
15. UNOOSA (United Nations Office for Outer Space Affairs)---Austria, Vienna
16. FAO (Food and Agriculture Organization)---Italy, Rome
17. IAEA (International Atomic Energy Agency)----Austria, Vienna,
18. IEA (International Energy Agency)----Paris, France
19. ICAO (International Civil Aviation Organization)---Canada, Montreal
20. IFAD (International Fund for Agricultural Development)----Italy, Rome
21. ILO (International Labour Organization)---Switzerland, Geneva
22. IMO (International Maritime Organization)---United Kingdom, London
23. IMF (International Monetary Fund) ---United States Washington, D.C.
24. ITU (International Telecommunication Union)---Switzerland, Geneva
25. UPU (Universal Postal Union)---Switzerland, Bern
26. WBG (World Bank Group i.e. IDA, MIGA, IFC & IBRD)----United States, Washington, D.C
27. WFP (World Food Programme)---Italy, Rome
28. WHO (World Health Organization)—Switzerland, Geneva
29. WIPO (World Intellectual Property Organization)--- Switzerland, Geneva
30. WMO (World Meteorological Organization)—Switzerland, Geneva
31. ISA (International Seabed Authority)----Jamaica, Kingston
32. CTBTO (Comprehensive Nuclear-Test-Ban Treaty Organization)---Austria, Vienna
33. OPCW (Organisation for the Prohibition of Chemical Weapons)----Netherlands, The Hague
34. UPEACE (University for Peace)----Costa Rica, San José
35. ICSC (International Civil Service Commission)---United States, New York
36. IOSCO (International Organization of Securities Commissions)----Madrid, Spain
37. ECB (European Central Bank)---Frankfurt, Germany
38. EU (European Union) (28 Members) ---Brussels, Belgium
39. AU (African Union)----Addis Ababa, Ethiopia.(The only African state that is not a member is --Morocco )
40. WFE (World Federation of Exchanges)----London, United Kingdom
41. AIIB (Asian Infrastructure Investment Bank) (57 Members) ----Beijing, China
42. NDB (New Development Bank) or BRICS Bank (5 Members) ----Shanghai, China
43. ICAO (International Civil Aviation Organization) ---Montreal, Canada
44. UPU (Universal Postal Union) ---Bern, Switzerland
45. INTERPOL (International Criminal Police Organization) (190 Members) ---Lyon, France
46. SEATO (South-East Asia Treaty Organization) (8 Members) ---Bangkok, Thailand
47. ADB (Asian Development Bank) (67 Members) ---Manila
48. ICC (International Cricket Council) (105 Members) ---UAE, Dubai
49. SAARC (South Asian Association for Regional Coop.) (8 Members) ---Kathmandu, Nepal
50. ASEAN (Association of South East Asian Nations) (10 Members) ----Jakarta, Indonesia
51. APEC (Asia Pacific Economic Forum) (21 Pacific Rim member economies) ----Singapore
52. WEF (World Economic Forum) -----Cologny, Switzerland
53. ISO (International Standards Organization) (163 Members) ----Geneva, Switzerland
54. IOC (International Olympic Council) (205 Members) ----Geneva, Switzerland
55. Red Cross----Geneva, Switzerland
56. IMF (International Monetary Fund) ----Washington DC
57. OECD (Org. for Economic Cooperation and Development) (34 Members) ----Paris, France
58. OPEC (Organization of Petroleum Exporting Countries) (12 Members) ----Vienna, Austria
59. AI (Amnesty International) ----London, UK
60. CW (Commonwealth) of Nations (54 Members) ----London, UK
61. IMO (International Maritime Organization) ---London, UK
62. ICJ (International Court of Justice) ----The Hague, Netherland
63. OPCW (Organization for the Prohibition of Chemical Weapons)(190 Members) ----The Hague, Netherland
64. FAO (Food and Agricultural Organization) ----Rome, Italy
65. NATO (North Atlantic Treaty Organization) (28 Members) ----Brussels, Belgium
66. TI (Transparency International) ----Berlin, Germany
POWER PLANTS (ATOMIC, THERMAL, HYDRO, SOLAR)

Nuclear/Atomic Power Plants: Thermal Power Plants:
1. Kaiga-Karnataka 1. Mundra Power Station- Gujarat (Highest Capacity)

2. Kakrapar-Gujarat 2. Vindyachal power plant- Madhya Pradesh
3. Kalpakkam-Tamil Nadu 3. Talcher power plant– Orissa
4. Narora-Uttar Pradesh 4. Kamalanga Thermal Plant- Dhenkanal, Odisha
5. Rawatbhata-Rajasthan 5. Sipat Thermal Power Plant- Chhattisgarh
6. Tarapur-Maharashtra (Highest Capacity) 6. Rihand Thermal Power Station- Uttar Pradesh
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7. Kudankulam-Tamil Nadu 7. Vedanta Thermal Power Plant-Jharsuguda, Odisha

8. Banswara– Rajasthan 8. Ramagundam power plant- Andhra Pradesh
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9. Gorakhpur– Fatehabad, Haryana 9. Korba power plant– Chhattisgarh

10. Dadri power plant– UP
11. Singrauli power plant– MP
12. Farakka power plant- West Bengal 1. Tehri Dam: (On Bhagirathi River), Uttarakhand.
13. Trombay Thermal Power Station- Maharashtra 2. Koteshwar Dam: (on the Bhagirathi River),
14. Maithon Power Plant- Jharkhand Uttarakhand
15. Guru Gobind Singh Super Thermal Power Plant- 3. Bhakra nangal Dam: (on Sutlej River) Punjab and
Punjab Himachal Pradesh.
16. Durgapur Steel Thermal Power Station- West 4. Hirakud Dam: (on Mahanadi River), Orissa.
Bengal 5. Chamera Dam: (on River Ravi), Himachal Pradesh
17. Koderma Thermal Power Station- Jharkhand 6. Nagarjuna sagar Dam: (on Krishna River), Andhra
18. Parichha Thermal Power Station- Uttar Pradesh Pradesh, Telengana
19. Obra Thermal Power Station- Uttar Pradesh 7. Sardar Sarovar Dam: (on Narmada River),
20. Anpara Thermal Power Station- Uttar Pradesh Gujarat.
21. Feroze Gandhi Unchahar Thermal Power Plant- 8. Chutak, Nimmo-Bazgo, Sewa Dam : J & K
Uttar Pradesh 9. Srisailam Dam: Andhra Pradesh,Telangana
22. Tuticorin Thermal Power Station- Tamil Nadu 10. Sharavathi, Kalinadi Dam: Karnataka
23. Mettur Thermal Power Station- Tamil Nadu 11. Idukki: Kerala
24. Parli Thermal Power Station- Maharashtra 12. Mettur Dam: Tamil Nadu
25. Bhusawal Thermal Power Station- Maharashtra 13. Koyna: Maharashtra
26. Khaparkheda Thermal Power Station- 14. Indira Sagar, Bansagar Dam: Madhya Pradesh
Maharashtra 15. Indravati Power Station, Balimela Power
27. Panipat Thermal Power Station- Haryana Station, Hirakud, Rengali ,Jalaput Dam:
28. Satpura Thermal Power Station- Madhya Odisha
Pradesh 16. Loktak Dam: Manipur
29. Neyveli Thermal Power Station II- Tamil Nadu
30. Udupi Power Plant- Karnataka Wind & Solar Power Plants:
31. Kolaghat Thermal Power Station- West Bengal
1. Charanka Solar Park- Gujarat
Hydro Power Plants: 2. Vankusawade Wind Park – Maharashtra
INTERNATIONAL GOVERNING BODIES
GOVERNING ORGANIZATION SPORTS HEAD QUARTER

FINA(Federation International Nation) Swimming, Diving, water polo Lausanne, Switzerland
FIBA(International Basketball Federation) Basketball Mies, Switzerland
FIFA(Federation of International Football Football Zurich, Switzerland
Association)
FIDE(International Chess Championship) Chess Athens, Greece
ICC (International Cricket Council) Cricket Dubai, UAE
IBSF(International Billiard & Snooker Billiard & Snooker Dubai, UAE
Federation)
BWF(Badminton World Federation) Badminton Kuala Lumpur, Malaysia
IBAF(International Baseball Federation) Baseball Lausanne, Switzerland
IABA(International Boxing Association) Boxing Lausanne, Switzerland
FIH(International Hockey Federation) Hockey Lausanne, Switzerland
ITF(International Tennis Federation) Tennis London, UK
FIVB(International Volleyball Federation) Volleyball Lausanne, Switzerland
IOC(International Olympic Committee) Olympic Lausanne, Switzerland
TROPHIES & SPORTS TERMS
SPORTS TROPHIES SPORTS TERM

Badminton Thomas Cup(male), Uber Drop, Deuce, Smash, Love,
Cup(female), Narang Cup, Agarwal Doublefault, Touch, Base Line,
Cup, Sudirman Cup, Challenge Cup, Backcourt, Bird, Carry, Clear, Center
Konica Cup,Yonex Cup Line, Court, Drive, Kill, Rally, Loab,
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Let
Base ball Commissioner‘s Trophy Perfect game, Home run, Pitcher,
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Warren C. Giles Trophy Put out, Strike, Diamond, ant-rubber

William Harridge Trophy
Basket ball B.C. Gupta Trophy, Todd Memorial Block, Dribble, Pivot, Dunk, Free
Trophy, William Jones Cup throw, Front Court, Lay-up,
Rebound, Steal
Billiard & Snooker Walker Trophy, Thomas Cup Cue, Canon, Long Jenny, Short
Jenny,. Frame In-off, Jigger, pot,
Bolting
Boxing Federations Cup, Val Baker Trophy Rounds, Knock Out, Jab, Hook,
Punch, Count Down, upper cut
Bridge Holkar Cup, Rana Gold Cup, Ruia Rubber, Trump, Little Slam
cup
Chess Naidu Trophy, Khaitan Trophy Move, Checkmate, Knight, Pawn,
Gambit, Double Check, Promotion,
Grandmaster, Attack, Castle
Cricket Deodar Trophy, Ranji Trophy,Vijay Hat-trick, Maiden, Follow-on, Gully,
Hazare Trophy, Ashes Trophy, Yorker, Bouncer, Pull, Googly,
Duleep Trophy, Sahara Cup, C. K Hook Fick, Stumped, Duck, LBW,
Nayadu Trophy ,Singer Cup, Wisden Pitch, Bye, Draw, Over throw, Hit
Trophy, Irani Trophy, Asia cup, Wills wicket, Topspin
Trophy, Gillette cup
Foot Ball Durand Cup, Merdica Cup, Goal, Corner-Kick, Free-Kick, Red
Santhosh Trophy, Subratho Cup, Card, Yellow Card, Foul, Trapping,
Rovers Cup, Federation Cup/Fed Heading, Penalty, Pass, Forward,
Cup, Nehru Cup, B.C. Roy Trophy, Dribble, Half, Give and Go, Dissent,
DCM Cup, Gold Cup, Governor's Dummy, Feint, Throw ins.
Cup, Independence Day Cup, Indira
Gandhi Trophy, COPA Cup, Kings
cup
Golf Rider Cup, Walker Cup, Canada Cup Fore some, Stymle, T, Put hole,
Caddy, Nib Lick, Iron, The Green,
Course, Links, Tee, Niblic, Hole,
Eagle, Par, Put, Club, Iron, Rough,
Hockey Agakhan Cup, Ranga Swamy Cup, Centre, Penalty-Stroke, Sjick, Push-
Muragappa Gold Cup, Dhyanchand in, Carry, Touch-line, Penalty Box,
Trophy, Guru Nanak Cup, Neheru Bully, Post back, Circle.
Trophy, MCC Trophy, Johar Cup
Lawn Tennis Australian Open, French Open, Smash, Serve, Set, Deuce, Ace,
Wimbledon Open, US Open, Davis Slice, Backhand, Forehand, Grand-
Cup, Hopman Cup, Youthant cup, Slam, Love, Lab
kremlin cup, hamlet cup
Polo Chuker, Bunker
Swimming Breast stroke, twist, butterfly, crawl,
spring board.
Shooting Target, Muzzle fulb, Bulls Eye
Table Tennis Smash, Drop, Deuce, Spin, Let,
Corbillion Cup, Uthant Cup, Service
Swaythling cup,
Jaylaxmi cup
Volley Ball Antennae, Attack hit, Libero,
service, set up, blocking, dribbling
Wrestling Half, Nelson, Hold sager, Rebuts
Net Ball Airborne throw, Back line, Bending,

Court, Chess pass, Dummy run,
Man to Man, Feint pass, Free pass,
Overhead pass, Feed, Lunging,
Zone defence, Pivoting
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Note: Badminton-Court, Baseball- Diamond, Boxing- Ring, Cricket-Pitch, Lawn Tennis- Court, Skating-Ring, Golf-
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Link, Green, Wrestling-Ring, Arena
FOLK DANCE CLASSICAL DANCE FESTIVALS
Ghoomar-Rajasthan Kathak-Northern India(UP) Oonam-Kerla
Bhangra-Punjab Bihu-Assam Pongal-Tamil Nadu
Garba- Gujarat BharatNatyam-Tamil Nadu Aadi Peruku, Thanks giving festival-
Tamil Nadu
Karagam-Tamil Nadu Kuchupudi-Andhra Pradesh Cheraw,The bamboo dance-Mizoram
Dumhal-Kashmir Kathakali-Kerla Baisakhi or Vaisakhi-Punjab
Lavani-Maharastra Rauf- J&K Hareli-Chhatissaghrh
Gair-Rajasthan Chau-Odisha,Bihar, WB Kutfestival- Manipur
Changu-Odisha & Andhra Tokhu Emong-Nagaland
Note: Other harvest festival of the Indian states includes Navanna in West Bengal, Wangala in Meghalaya, Pawl
Kut of Mizoram and most famous Garia Puja of Tripura)
BOUNDARY LINES, WATERFALLS & HILL STATIONS

Boundary Lines:
 The boundary between China and India- The McMahon Line
 The boundary demarcation line between India and Pakistan- The Radcliffe Line
 Durand Line is the line demarcating the boundaries of Pakistan and Afghanistan
 24th Parallel is the line which Pakistan claims for demarcation between India and Pakistan. This, however, is
not recognized by India.
 Medicine Line is the border between Canada and the United States.
Famous Waterfalls:
 Dudhsagar Waterfall created by Mandovi river also known as ―Sea of Milk‖–-Goa
 Jog Waterfalls one of the UNESCO ecological hot spots in the world.--– Karnataka
 Nohsngithiang waterfalls also known as The seven sisters waterfalls---Meghalaya
 Thoseghar Waterfalls---Maharashtra
 Pachmarhi water falls---- Madhya Pradesh
 Athirappilly waterfalls---Kerala
 Courtallam Waterfallsalso called as Spa Of South India---Tamil Nadu
 Talakona falls---Andhra pradesh
 Khandadhar Waterfall The tallest waterfall of ---Odisha , Sundergarh
 Chitrakot Waterfall also known as Niagara falls of India– Chhattisgarh
 Dhuandhar falls also known as Dhuandhar Jalprapat---Jabalpur, Madhya Pradesh
 Nohkalikai Falls, the tallest plunge waterfall in India----Meghalaya, Cherrapunji, India
 Thalaiyar Falls also known as Rat Tail Falls---Tamil Nadu
 Abbey Falls--- Karnataka
Major Hill Stations:

 Tamil Nadu (Coonoor, Kodaikanal,Ooty)
 J&K (Gulmarg, Phalgam)
 Himachal Pradesh (Dalhousie, Kasauli, Kullu Velly, Manali, Mandi, Shimala)
 Maharastra (Khandala, Lonawala, Mahabaleswar, Panchgani)
 Kerla (Mannar, Periyar, Darjeeling, Gangtok, Kalimpong)
 Uttarakhand (Lansdowne, Ranikhet, Nainital, Mussoorie, Mukteswar)
 Rajasthan (MountAbu)
 Madhya Pradesh (Pachmarhi)
Common Facts:
 India shares longest boundary with Bangladesh
 Gujarat state has the longest cost line.
 The highest peak in India-K2 (Godwin Austin)& it is the 2nd highest peak in the World.
 Largest river in India Brahmaputra (in volume), Ganga (in length).
 East flowing river-Mahanadi, Godavari(Largest), Krishna, Cauveri
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 West flowing river- Tapi, Luni, Narmada (Largest). .

 Country with the largest surface area-Russia
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POPULAR AWARDS
The Indian honor system is broadly classified into five types - Leadership, Literature, Civilian, Patriotic, and
Particular. No cash award is allocated for these awards.
Leadership awards:
 Gandhi Peace Prize awards
 Indira Gandhi Prize
Literature awards:
 Sahitya Akademi Award
 Sahitya Akademi Fellowship
 Bhasha Samman
 Translation Awards
 Anand Coomarswamy Fellowships
 Premchand Fellowship
 Jnanpith Award
Civilian awards:
 Bharat Ratna: Highest civilian Award of the country. The recommendations for Bharat Ratna are made by the
Prime Minister to the President. The number of annual awards is restricted to a maximum of three in a particular
year
 Padma awards:These awards have been announced every year on Republic day.

ND
Padma Vibhushan for ‗exceptional and distinguished service(2 )

RD
Padma Bhushan for ‗distinguished service of a high order‘(3 )

TH
Padma Shri is awarded for ‗distinguished service‘(4 )
Patriotic Awards:
 Wartime gallantry awards:
 Param Vir Chakra- Highest military award for, equivalent to the Victoria Cross (which was replaced once
India gained its independence).
 Maha Vir Chakra- The Maha Vir Chakra (MVC) is the second highest military decoration in India and is
awarded for acts of conspicuous gallantry in the presence of the enemy, whether on land, at sea or in the air.
 Vir Chakra-It is third in precedence in the war time gallantry
 Peacetime gallantry awards:
 Ashok Chakra Award- an Indian military decoration awarded for valor, courageous action or self-sacrifice
away from the battlefield. It is the peace time equivalent of the Param Vir Chakra.
 Kirti Chakra-It is second in order of precedence of peacetime gallantry awards.
 Shaurya Chakra-It happens to be third in order of precedence of peacetime gallantry awards.
Nobel Prize:
The will of the Swedish inventor Alfred Nobel (Invented Dynamite) established the prizes in 1895. The prizes
awarded in the field of Chemistry, Literature, Peace, Physics, Economics and Physiology or Medicine. The prizes
are awarded in Stockholm, Sweden, except for the peace prize which is awarded in Oslo, Norway. The Royal
Swedish Academy of Sciences awards the Nobel Prize in Physics, the Nobel Prize in Chemistry, and the Nobel
Memorial Prize in Economic Sciences; the Nobel Assembly at Karolinska Institutet awards the Nobel Prize in
Physiology or Medicine; the Swedish Academy grants the Nobel Prize in Literature; and the Nobel Peace Prize is
awarded not by a Swedish organization but by the Norwegian Nobel Committee. Indian winners are Rabindranath
Tagore (Literature), C. V. Raman (Physics), Mother Teresa (Peace), Amartya Sen (Economics), Kailash
Satyarthi (Peace).
The Ramon Magsaysay Award (Also called the Nobel of Asia):

It is awarded for outstanding contributions in Government Service, Public Service, Community Leadership,
Journalism, Literature and Creative Communication Arts, Peace and International Understanding and Emergent
Leadership. It is awarded by Ramon Magsaysay Award Foundation, Philippines.
Other Awards:
 Dronacharya Award is an award presented by the Ministry of Youth Affairs and Sports, government of India
for excellence in sports coaching
 The Rajiv Gandhi Khel Ratna (RGKR) Award is the India's highest award given for best sportsman in
75
every year.
 The Academy Awards or The Oscars is an annual American awards ceremony honoring cinematic
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achievements in the film industry.

 The Field Medal given in outstanding contributions in mathematics attributed to young scientists
 The Folio Prize, also known as The Literature Prize, is a literary award that was sponsored by the London-
based publisher.
 The Jnanpith Award (also spelled as Gyanpeeth Award) is a literary award in India. Along with the Sahitya
Akademi Fellowship, it is one of the two most prestigious literary honors in the country.
 The International Indian Film Academy (IIFA) Awards are a set of awards presented annually by the
International Indian Film Academy to honor both artistic and technical excellence of professionals in
Bollywood, the Hindi language film industry.
 The Pulitzer Prize is an award for achievements in newspaper and online journalism, literature, and musical
composition in the United States. This award administered by Columbia University in New York City.
 The Dadasaheb Phalke Award is India's highest award in cinema. It is presented annually at the National
Film Awards ceremony by the Directorate of Film Festivals, an organization set up by the Ministry of
Information and Broadcasting.
 The Abel Prize is an international prize awarded annually by the Government of Norway to one or more
outstanding Mathematicians.
 The Man Booker Prize for Fiction is a literary prize awarded each year for the best original novel, written in
the English language, and published in the UK.
 The Shanti Swarup Bhatnagar Prize for Science and Technology (SSB) is a science award in India given
annually by the Council of Scientific and Industrial Research (CSIR).
 The Kalinga Prize for the Popularization of Science is an award given by UNESCO for exceptional skill in
presenting scientific ideas to lay people.
 The Grammy Award is an accolade by the National Academy of Recording Arts and Sciences of the United
States to recognize outstanding achievement in the Music industry.
 Aga Khan Award, Stirling Prize, Pritzker Prize awarded in the field of Architecture.
 Moorti Devi Award, Booker Prize, Saraswati Samman, Vyas Samman for Literature
 Arjuna Award, Dhyan Chand Award for outstanding performance in sports and games
LIST OF INDIAN MISSILES & THEIR RANGES

 Prithvi(Ballistic Missile)- 150-600 KM  Prahaar/Pragati( Ballistic Missile)-150 KM
 Agni(Surface to surface Missile)- 700-10,000 KM  Helina(Anti-Tank Guided Missile)- 7-8 KM
 BrahMos(Subsonic cruise Missile)- 300-500 KM  Trishul (Surface-To-Air Missiles)-12 KM
 Shaurya(Ballistic Missile)- 700-1900 Km  Nag(Anti-Tank Guided Missile)- 3-7 KM
 Akash(Surface to Air Missile)- 30-35 Km  Dhanush(Ballistic Missile)- 350-600 KM
 Astra(Air to Air Missile)- 60-80 KM  Nirbhay(Subsonic cruise missile)-1000-1500 KM
CENSUS-2011 HIGHLIGHTS
 This was the 15th Census of India (7th Census  Literacy of Male 82.14%
after Independence).  Literacy of Female 65.46%
 Slogan: Our census, Our Future  Population Growth Rate 17.64%
 Registrar General and Census Commissioner C.  Highest fertility Rate- Meghalaya
Chandra Mouli  Most literate union territory Lakshadweep

th
India's 1st Census 1872. 2011 Census is 15 (92.2%)
Census  Least literate Union Territory Dadra Nagar &
 Total Population 1,21,01,93,422 (~121 Crore) Haweli

nd
India's Rank in population 2 in world with  Most Literate District Serechhip (Mizoram)
17.5% (1st China with 19%)  Least Literate District Dadra Naga & Haveli
 Most Populous State Uttar Pradesh  Highest Density of Population Bihar(1102
 Least Populous State Sikkim sq.km)
 State has highest urban population–  Lowest Density of Population Arunachal
Maharashtra Pradesh (17)
 State has lowest urban population - Sikkim  Total number of districts 640
 Most Literate State Kerala (93.9%)  Highest Populous District Thane (Mumbai)
 Least Literate State Bihar (63.82%)  100% Literacy District Palakkad(Kerala)
 National Sex Ratio Female : Male (940 : 1000)  100% Banking State Kerala
 Highest Sex Ratio (State) Kerala (1084 : 1000)  100% Banking District Palakkad (Kerala)
 Lowest Sex Ratio (State) Haryana  Density of Population in India 382 per sq. km
 
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Highest Sex Ratio (UT) Puducherry Increase in population (during 2001 to 2011) 181
 Least Sex Ratio (UT) Damn & Dayyu (618 : million
1000)
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IMPORTANT SUMMITS
A Summit is a meeting of heads of state or government, usually with considerable media exposure, tight
security and a prearranged agenda. Below is the list of important summits, meetings and conferences of the world in
the year 2013, 2014, 2015, 2016 etc. The lists of summits are G20, BRICS, G7, NATO, BIMSTEC, APEC, SAARC,
OPEC, ASEAN, IBSA etc.
 G20 Summits (1999) (http://www.g20india.gov.in/):
The Group of Twenty (G20) is a group of Head of Govt., Finance ministers and Central bank governors from 20
major economies: 19 countries plus the European Union, which is represented by the President of the European
Council and by the European Central Bank. Chairperson Tony Abott,
20 Countries= BRICS(5)+ G7 + Argentina, Australia, Indonesia, Mexico, South Korea, Saudi Arabia, Turkey
 G 20 Outreach Group-B20(Business20),C20(Civil20), L20(Labor20),T20(Think20),Y20(Youth20)
(a) The G-20 Leaders (Head of Govt.) Summits :


st
01 G 20 Meeting 2008 – US, Washington D.C.

th
08 G 20 Meeting 2013 – Russia, Saint Petersburg

th
09 G 20 Meeting 2014 – Australia, Brisbane

th
10 G 20 Meeting 2015 – Turkey, Antalya

th
11 G 20 Meeting 2016 – China, Hangzhou
(b) The G-20 Finance Ministers & Central Govt. Governors Meet:

st
01 Finance Ministers & Central Govt. Governors Meet – 2015 – Turkey, Istanbul
(c) The G-20 Labor and Employment Ministerial meet :( Visit http://www.ituc-csi.org/l20?lang=en)
 2013-Moscow, Russia
 2014- Melbourne, Australia
 2015-Turkey
Note:
 The 6th B20 Summit was held in Sydney, Australia on July 16-18, 2014
 The B20 held their first meeting in the G20 Turkish Presidency year in Istanbul on December 17, 2015.
 The C20 summit 2014 Melbourne, Australia
 The C20 summit 2015 Turkey
 The L20 Summit 2014 Brisbane, Australia
 The L20 Summit 2015 Turkey
 The T20 summit 2014 Australia
 The T20 summit 2015 Turkey
 The Y20 summit 2014 Australia
 The Y20 summit 2015 Turkey
 The W20 (women20) summit 2015 Turkey
 BRICS Summits (2008)(http://www.bricsforum.org/)
Countries (5): Brazil, Russia, India, China and South Africa


th
5 BRICS Summit 2013 – Durban, South Africa

th
6 BRICS Summit 2014 – Fortaleza, Brazil

th
7 BRICS Summit 2015 – UFA, Russia

th
8 BRICS Summit 2016 -- India
 G7 Annual Summits(Earlier it was G8,Now Russia suspended Temporarily)(1975)

Group of Seven Countries – France, Germany, Italy, Japan, United Kingdom, United States of America, Canada.

th
39 G8 Summit 2013 – County Fermanagh, UK

th
40 G8 Summit 2014 – Brussels, Belgium

st
41 G8 Summit 2015 – Schloss Elmau, Germany

nd
42 G8 Summit 2016 – JAPAN

RD
43 2017-ITALY

TH
44 2018- CANADA
77

TH
45 2019-FRANCE

TH
46 2020-US
 SAARC Summits (South Asian Association for Regional Cooperation) (1985)
Page
HQ: Nepal
Countries (8) Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, Sri Lanka
 Theme of 18th SAARC Summit – ‗Deeper Integration for Peace, Progress and Prosperity‘
 17th SAARC Summit 2011– Addu, Maldives
 18th SAARC Summit 2014 – Kathmandu, Nepal
 19th SAARC Summit 2015 – Islamabad, Pakistan
 ASEAN Summits (Association of South East Asian Nation) (http://www.asean.org/asean/asean-

structure/asean-summit/)

th st
20 & 21 ASEAN India Summit 2012 – Phnom penh, Cambodia

nd rd
22 & 23 ASEAN India Summit 2013- Brunei, Bandar Seri Begawan

th th
24 & 25 ASEAN India Summit 2014 – Nay Pyi Taw, Myanmar

th th
26 & 27 ASEAN India Summit 2015- Malaysia, Kuala Lumpur
 ASEAN Summit for Public Relations (APRS) 2015- Indonesia, Batam
 East Asia Summit (EAS)

(http://www.asean.org/asean/external-relations/east-asia-summit-eas)
 EAS meetings are held after annual ASEAN leaders‘ meetings.

th
6 East Asia Summit 2011 – Bali, Indonesia

th
7 East Asia Summit 2012 – Phnom penh, Cambodia

th
8 East Asia Summit 2013-Brunei, Bandar Seri Begawan

th
9 East Asia Summit 2014- Burma, Nay Pyi Taw, Myanmar

th
10 East Asia Summit 2015- Malaysia, Kuala Lumpur
 IBSA Summits (2003)

 IBSA stands for India, Brazil, South Africa

th
4 IBSA Summit 2010-Brazil, Brasília

th
5 IBSA Summit 2011- Tshwane, South Africa

th
6 IBSA Summit 2013 – New Delhi, India
 7th IBSA Summit 2015 – New Delhi, India
 BIMSTEC Summits (Bay of Bengal Initiative for Multisectoral Technical and Economic Cooperation (1997)
(http://www.bimstec.org/)
 Total Countries (7): Bangladesh, India, Myanmar, Nepal, Sri Lanka, Thailand, Bhutan.
 Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC)
 The Asian Development Bank(ADB) has become BIMSTEC's development partner
 3rd BIMSTEC Summit 2014 – Nay Pyi Taw, Myanmar
 4th BIMSTEC Summit 2015 – Nepal
 APEC Summits (Asia Pacific Economic Cooperation) (1989)

 Total Countries-21
 HQ-Singapore and Executive Director-Alan Bolard
 INDIA IS NOT IN APEC COUNTRIES.
 25th APEC Summit 2013 – Medan/Jakarta, Indonesia
 26th APEC Summit 2014 – Beijing, China
 27th APEC Summit 2015 – Philippines, Manila
 28th APEC Summit 2016 – Peru, Lima
 29th APEC Summit 2017 – Vietnam, Hanoi
 30th APEC Summit 2018-Papua New Guinea
 31th APEC Summit 2019-Chile
 32th APEC Summit 2020-Malaysia
 33th APEC Summit 2021-New Zealand
 34th APEC Summit 2022-Thailand
 Nuclear Security Summit (NSS) (2010)

 Total Countries participated in the 2nd NSS 2012 summit was 53 countries.

nd
2 NSS 2012- Seoul, South Korea
 3rd NSS 2014 –The Hague, Netherlands
 4th NSS 2016 – Chicago, USA

78
NATO Summit (North Atlantic Treaty Organization) (1949)

 Total Countries28
 HQ-Belgium and Secretary General Jenus Stoltenberg (newly elected from Norway)
Page
 INDIA IS NOT IN NATO SUMMIT COUNTRIES.
 NATO 2012-US, Chicago
 NATO 2014-Britain, UK
 NATO 2016-Warsaw, Poland
 OPEC(Organization Of Petroleum Exporting Countries) Summits

 15th International OPEC Summit, 2014– Paris, France
 168th (Ordinary) OPEC Meeting-4 December 2015 -Vienna, Austria
 ATOMEXPO
 ATOMEXPO 2014, 6th International Forum in Moscow, Russia on June 9-11, 2014
 ATOMEXPO-2015, 7th International Forum will be held on June 1-3, 2015 in Moscow, Russia
 BASIC (Brazil, South Africa, India, China)

 18th BASIC Ministerial Meeting, 2014– New Delhi, India
 United Nations Climate Change Conference:

 2013: Warsaw, Poland
 2014: Lima, Peru
 2015: Paris, France
Short cut to remember member countries:
 SAARC Members(8)- SBI PNB MUTUAL AFFAIRS (S-Sri Lanka, B-Bangladesh, I-India, P-Pakistan, N-
Nepal, B-Bhutan, M-Maldives, Af-Afghanistan)
 G8 Members(8)-ABROWN CAT RUNNING FOR GERMANY IN JOY(A-America, B-Britain, C-Canada, R-
Russia, , F-France, G-Germany, I-Italy, J-Japan)
 ASEAN(10)- BPL TV IS MY MAM‟S CHOICE(B-Brunei, P-Philippines, L-Laos, T- Thailand, V- Vietnam, I-
Indonesia, S- Singapore, MY- Myanmar, MA- Malaysia, C- Cambodia)
SPORTS VANUE
Commonwealth Games venues:

st nd
XIX-2010-New Delhi, India (Medal Tally: 1 Australia, 2 India)

TH st th
XX(20 )-2014-Glasgow, Scotland(Medal Tally: 1 England, 5 India)
 XXI-2018-Gold Coast, Australia
 XXII-2022- Durban, South Africa.
Olympics Games venues:
 2012 summer - London, UK

 2014 winter – Sochi, Russia
 2016 Summer - Rio de Janeiro, Brazil
 2018 winter - Pyeongchang, South Korea
 2020 summer - Tokyo , Japan
U-19 World Cup venues:
 2012 - Australia (winner-India)

 2014 - UAE (winner-South Africa)
 2016 - Bangladesh
 2018 - New Zealand
 2020 - South Africa
 2022 - West Indies
ICC World Cup Cricket Venue:
ODI: (One Day International):

79
 2011- Bangladesh, India and Sri Lanka (winner-India)


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2015 - Australia & New Zealand (winner-Australia)

 2019 - England
 2023 - India
T20:

th
4 2012 - Sri Lanka(Winner-West Indies, Runners up-Sri Lanka)

th
5 2014 – Bangladesh (Winner-Sri Lanka, Runners Up-India)

th
6 2016 - India

th
7 2020 – Australia & New Zealand
Test Championship (Previously ICC Champions Trophy)

 2013-England, Wales (Winner-India, Runners Up- England)
 2017- England, Wales
 2021- India, Mumbai
IPL T20:
Session Winner Runners up

st
2008(1 Edition) Rajasthan Royals Chennai Super Kings
th
2014(7 Edition) Kolkata Knight Riders Kings XI Punjab
th
2015(8 Edition) Mumbai Indians Chennai Super Kings
2016 - -
Note: Orange cap awarded to the Batsman (Player) who score Most Runs, Purple color cap awarded to the Bowler
who picked up Most Wickets)
Hockey World Cup Venue:

Men‟s:
 2010 – New Delhi, India
 2014 – The Hague, Netherland
 2018 – Bhubaneswar, India
Women‟s:
 2010 - Rosario, Argentina
 2014 – The Hague, Netherland
 2018 - London, England
FIFA (Football) World Cup venue:

th
20 2014 - Brazil (Winner-Germany, Runners Up-Argentina)

st
21 2018 - Russia

nd
22 2022 - Qatar
Note: Golden Ball- for best player, Golden Boot- for top goal scorer, Golden Glove- for best goalkeeper
ASEAN Games (Asiad) Venue:

st th
XVI-2010- Guangzhou, China (Medal Tally: 1 China, 6 India)

st th
XVII-2014- Incheon, South Korea (Medal Tally: 1 -China, 8 -India)
 XVIII-2018- Jakarta–Palembang, Indonesia
National Games of India:


th
34 -2011- Ranchi

th
35 - 2015- Kerala (winner- Services)

th
36 – 2016 - Goa

th
37 – 2018 - Chhattisgarh

th
38 – 2020 - Uttarakhand

th
39 – 2022 – Haryana
80
Kabaddi World Cup:

 4 - 2013- Punjab, India
th
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 5 - 2014- Punjab, India

th
PARLIAMENTS OF DIFFERENT COUNTRIES

 Argentina-National Congress  France-National Assembly
 Australia-Federal Parliament  India-Sansad
 Bangladesh-Jatia Parliament  Indonesia-People‘s Consultative Assembly
 Bhutan-Tsogdu  Israel-The Knesset
 Brazil-National Congress  Italy-Chamber Of Deputies And Senate
 Britain-Parliament (House Of Common‘s And  Japan-Diet
House Of Lords)  Malaysia-Majilis
 Canada-Parliament  Nepal-Rashtriya Panchayat
 China-National People‘s Assembly  Pakistan-National Assembly & Senate
 Crotia-Sabor  Russia-Duma & Federal Council
 Denmark-Folketing  South Africa-Parliament
 Germany-Bundestag (Lower House) and  USA-Congress
Bundesrat (Upper House)
NEWS PAPERS& MAGAZINES
TOP MAGAZINES OF THE WORLD:  The New York Times (USA)

 The Washington Post (USA)
 TV Magazine-France  China Daily (China)
 TIME Magazine-USA  The Times of India (India)
 FROBES Business Magazine(it features original  The Sydney Morning Herald (Australia)
articles on finance, industry, investing, and  The Asahi Shimbun (Japan)
marketing)-USA  Dawn (Pakistan)
 Cosmopolitan-Russia  Zaman (Turkey)
 TODAY Magazine-Singapore  Daily Mails (British)
 People‟s Daily (China)
TOP NEWSPAPERS OF THE WORLD  The Sun (UK)
 Global Times (Chinese Daily)
 The Guardian (UK)
 The Wall Street Journal (USA)
DAYS & DATES
January February 24 - Central Excise Day

January 01 - Global Family Day February 28 - National Science Day
January 09 – NRI Day 2nd Sunday of Feb - World Marriage Day
January 10 - World Laughter Day
January 12 - National youth Day(Birth Day of Swami March
Vivekananda) March 03 - National Defence Day
January 15 - Army Day(India) March 04 - National Security Day, World Day of the Fight
January 23 - Netaji Subhash Chandra Bose‘s birth against Sexual Exploitation
anniversary March 08 - International Women‘s‘ Day, World Literacy
January 25 - Tourism Day (India), Indian Voters Day Day
January 26 - Republic Day March 13 - World Kidney Day
January 26 - International Customs day March 15 - World Consumer Rights Day, World Disabled
January 30 - World Leprosy Eradication Day, Martyr's Day Day
(Mahatma Gandhi's Martyrdom Day, Sarvodaya Day March 16 - National Vaccination Day
March 20 - World Happiness Day
February March 21 - World Forest Day
February 02 - World Wetlands Day March 22 - World Water Day
February 04 - World Cancer Day March 23 - World Meteorological Day
February 13- Sarojini Naydu's Birth Anniversiry, World March 24 - World TB Day
March 27 - World Drama/Theatre Day
81
Radio Day (UNESCO)

February 14 - Valentine‘s Day
February 20 - World Day of Social Justice April
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February 21- International Mother Language Day April 02 - World Autism Day(UN)
April 05 - National Maritime Day September 15- Engineers Day (Birthday of pre-eminent
April 07 - World Health Day engineer M.Visvesvaraya)
April 18 - World heritage Day September 16 -World Ozone Day
April 21 - Civil Services Day September 21 -International Day of Peace (UN), World
April 22 - World Earth Day Alzheimer‘s day
April 23 - World Book and Copyright Day September 25 -Social Justice Day
April 25 - World Malaria Day(WHO) September 27 -World Tourism Day
April 26 - World Intellectual Property Day (UN)
October
May October 01-International Day of Older Persons (UN)
May 01- International Labor day October 02 -International day of Non-Violence, Gandhi
May 03 -Press Freedom Day, International Energy Day, Jayanti
World Asthma Day October 03 -World Nature Day, World Habitat Day
May 08 -World Red Cross and Red Crescent Day October 04 -World Animal Day
May 11 -National Technology Day October 05 -World Teacher‘s Day
May 15 -International Day of the Family October 08 -Indian Air force Day
May 17 -World Information Society Day, World Telecom October 09 -World Post Day
Day October 11- International Girl Child Day
May 21 -National Anti-Terrorism Day October 15 -World Students Day
May 24 - Commonwealth Day October 16 -World Food day
May 31 -World No Tobacco Day October 17 -International Day for the Eradication of
Poverty
June October 24 -United Nations Day
June 05 -World Environment Day October 31- National Integration Day, World Thrift Day
June 08 -World oceans Day
June 12 -World Day against Child Labor November
June 14 -World Blood Donor day November 07 - Infant Protection Day
June 20 -World Refugee Day November 07- World Cancer Awareness Day
June 21 - International Yoga Day November 09 -World Legal Services Day
June 23 -United Nations Public Service Day November 14 - National Children Day (Pt. Jawahar Lal
June 27 -International Diabetes Day Nehru's Birth Anniversary), World Diabetics Day
November 17 -International students Day, National
July Journalism Day
July 01 -National doctor‘s Day/ SBI Foundation Day November 18 -World Adult Day
July 11 -World Population Day November 19 -World Citizen Day
July 12 - Malala Day November 20 -Universal Children‘s Day
July 18 - Nelson Mandela International Day November 21-World Television Day, World Hello Day
July 29 - International Tiger Day November 26 – National Law Day
July 30 -International Day of Friendship November 30 –National Flag Day
August December
August 06 - Hiroshima Day December 01- World AIDS Day
August 08 - World Senior Citizen Day December 02 -World Computer Literacy Day
August 09 –Nagasaki Day December 02 - International Day for the Abolition of
August 12 - International Youth Day Slavery.
August 15 - Independence Day (India ) December 03 - International Day of People with Disability.
August 20 - National Sadbhawana Diwas (Birth December 04 -Navy Day(India)
Anniversary of Rajiv Gandhi) December 07 - International Civil Aviation Day
August 29 -National Sports Day (Birthday of hockey player December 09 - International Anti-corruption Day, National
Dhyan Chand) Girl Child Day (India)
December 10 -World Human Rights Day
September December 11 -UNICEF Day
December 14 -World Energy Day
September 05 –National Teacher‘s Day (Dr.
December 18 -International Migrants Day
Radhakrishnan‘s Birth Day)
December 23 - Farmer's Day (Kisaan Diwas)
September 70 - World Forgiveness Day
December 29 - International Biodiversity Day
September 08 -International Literacy Day
September 14 -Hindi day, World First Aid Day
IMPORTANT STADIUMS
India 4. M.A. Chidambaram Stadium, Chennai , Tamil Nadu
82
1. Wankhede Stadium Mumbai, Maharashtra(Cricket) Cricket

2. HPCA Stadium DHARAMSHALA, HIMACHAL 5. Eden Gardens Kolkata , West Bengal
PRADESH (Cricket) 6. Gymkhana Ground Mumbai , Maharashtra, Cricket
Page
3. Feroz Shah Kotla Ground, Delhi(Cricket) 7. Jsca Stadium Ranchi, Jharkhand Cricket
8. Khanderi Cricket Stadium Rajkot , Gujarat Cricket
9. Subrata Roy Sahara Stadium Pune , Maharashtra 42. Guru Gobind Singh Stadium, Nanded, Maharashtra
Cricket Cricket
10. Dr. D.Y. Patil Stadium Navi Mumbai , Maharashtra 43. Fort Maidan Palakkad, Kerala Football
Football And Cricket 44. Dilip Tirkey Stadium Ranchi, Jharkhand Hockey
11. New Vca Stadium Nagpur, Maharashtra Cricket 45. Birsa Munda Stadium Ranchi, Jharkhand Hockey
12. Maharani Usharaje Trust Cricket Ground Indore, 46. Kalinga Stadium Bhubaneswar, Odisha Hockey
Madhya Pradesh Cricket 47. Mahindra Stadium Mumbai, Maharashtra Hockey
13. Rajiv Gandhi International Stadium Hyderabad , 48. Dhyan Chand Astroturf Lucknow, Uttar Pradesh
Andhra Pradesh Cricket Hockey
14. Apca-Vdca Stadium Visakhapatnam , Andhra Pradesh 49. Dadaji Kondadev Stadium, Thane,
Cricket Maharashtra,Football
15. Indira Gandhi Stadium Vijayawada, Andhra Pradesh 50. Guru Nanak Stadium, Ludhiana, Punjab, Football
Cricket 51. Feroz Shah Kotla, Delhi
16. Barkatullah Khan Stadium Jodhpur, Rajasthan Cricket
17. Jawahar Lal Nehru Stadium Kochi, Kerala Australia
Multipurpose 1. Melbourne Cricket Ground, Mebourne
18. IPCL Sport Complex Vadodara, Gujarat Cricket 2. Sydney Cricket Ground, Sydney
19. K.D. Singh Babu Stadium Lucknow , Uttar Pradesh 3. The WACA, Perth
Multipurpose 4. The Gabba, Brisbane, Queensland
20. Fatorda Stadium Margao, Goa Football & Cricket 5. Bangladesh
21. Maulana Azad Stadium Jammu , Jammu & Kashmir 6. Sher-e-Bangla Cricket Stadium, Mirpur, Dhaka
Cricket
22. Indira Priyadarshini Stadium Visakhapatnam , Andhra England
Pradesh Cricket
1. The Lords, London
23. Roop Singh Stadium Gwalior , Madhya Pradesh
2. Old Trafford, Manchester
Cricket
3. The Oval, Kensington
24. Nahar Singh Stadium Faridabad, Haryana Cricket
4. Trent Bridge, Nottingham
25. Madhav Rao SC India Ground Rajkot, Gujarat Cricket
5. Birmingham, Warwickshire
26. Sector 16 Stadium Chandigarh Cricket
6. Headingley, Leeds
27. Nehru Stadium Pune, Maharashtra Cricket
7. Rose Bowl, Southampton
28. University Stadium Thiruvananthapuram, Kerala
Football
29. Jawahar Lal Nehru Stadium Delhi Multipurpose New Zealand
30. Keenan Stadium Jamshedpur , Jharkhand Cricket And 1. Eden Park, Auckland
Football 2. Basin Reserve, Wellington
31. Sardar Patel Stadium Ahmedabad , Gujarat Cricket
32. Moti Bagh Stadium Vadodara , Gujarat Cricket Pakistan
33. Sher-I-Kashmir Stadium Srinagar, Jammu & Kashmir 1. Gaddafi Stadium, Lahore
Cricket 2. Karachi Cricket Stadium, Karachi
34. Sawai Mani Singh Stadium Jaipur , Rajasthan Cricket
35. Gandhi Sports Complex Ground Amritsar , Punjab South Africa
Cricket 1. The Wanderers, Johannesburg
36. Barabati Stadium Cuttack, Orissa Cricket 2. Newlands Cricket Ground, Cape Town
37. M. Chinnasawami Stadium Bangalore , Karnataka 3. Port Elizabeth (St George‘s Oval), Port Elizabeth
Cricket 4. Super Sport Park (formerly Centurion Park), Centurion,
38. Vca Ground Nagpur , Maharashtra Cricket Gauteng
39. Lal Bahadur Shastri Stadium, Telengana , Andhra
Pradesh Cricket Sri Lanka
40. Green Park Stadium,Kanpur , Uttar Pradesh Cricket 1. Galle International Stadium, Galle
41. Brabourne Stadium Mumbai , Maharashtra Cricket
West Indies
1. Queen‘s Park Oval, Trinidad.
IMPORTANT INDIAN TOWNS ON RIVER BANK
1. Allahabad---At the confluence of the Ganga and 9. Mathura----Yamuna

Yamuna 10. Ferozpur----Satluj
2. Patna---Ganga 11. Ludhiana-----Satluj
3. Varanasi----Ganga 12. Srinagar------Jhelum
4. Kanpur----Ganga 13. Lucknow------Gomti
83
5. Haridwar----Ganga 14. Jaunpur------Gomti

6. Badrinath----Alaknanda 15. Ayodhya------Saryu
Page
7. Agra-----Yamuna 16. Bareilly------Ram Ganga

8. Delhi----Yamuna 17. Ahmedabad-----Sabarmati
18. Kota------Chambal 3. New Orleans -----Mississippi
19. Jabalpur------Narmada 4. Montreal (Canada)------ Ottawa
20. Panji------Mandavi 5. Quebec (Canada) ------St. Lawrence
21. Ujjain-----Shipra
22. Surat-------Tapti REVOLUTIONS IN THE FIELD OF
23. Jamshedpur-----Subarnarekha AGRICULTURE
24. Dibrugarh------Brahmaputra
25. Guwahati-----Brahmaputra
 Black Revolution - Petroleum Production
26. Kolkata-----Hooghly
 Blue Revolution - Fish Production
27. Sambalpur------Mahanadi
28. Cuttack------Mahanadi  Brown Revolution - Leather/non-conventional
29. Srirangapatna-----Cauvery (India)/Cocoa production
30. Hyderabad------Musi  Golden Fiber Revolution - Jute Production
31. Nasik-------Godavari  Golden Revolution - Fruits/Overall Horticulture
32. Vijayvada-----Krishna development/Honey Production
33. Kurnool-------Tungabhadra  Green Revolution - Food grains
34. Tiruchirapalli-------Cauvery  Grey Revolution - Fertilizer
 Pink Revolution - Onion production/Pharmaceutical
RIVERS SIDE CITIES (India)/ Prawn production
 Red Revolution - Meat & Tomato Production
1. Kabul (Afghanistan) -----Kabul  Round Revolution - Potato
2. Allahabad----- Confluence of  Silver Fiber Revolution - Cotton
Ganga,Yamuna,Saraswati (invisible)  Silver Revolution - Egg/Poultry Production
3. Varanasi---- Ganga  White Revolution - Milk/Dairy production
4. Nasik------ Godawari  Yellow Revolution - Oil Seeds production
5. Kolkata------ Hooghly  Evergreen Revolution - Overall development of
6. Cuttack--------- Mahanadi Agriculture
7. Patna----------- Ganga
8. Chittagong (Bangladesh)------- Maiyani POPULAR MUSEUMS IN INDIA
9. Lucknow-------- Gomati
10. Jamshedpur----------- Subarnarekha  National Museum, New Delhi
11. Haridwar---------- Ganga  Prince of Wales Museum, Mumbai, Maharastra
12. Delhi----------Yamuna
 Indian Museum, Kolkata, West Bengal
13. Kanpur---------- Ganga
 Calico Museum of Textiles, Ahmedabad, Gujarat
14. Surat---------- Tapti
15. Srinagar------------ Jhelum  Salar Jung Museum, Hyderabad, Telengana
16. Ferozepur---------Sutlej  Government Museum, Chennai, Tamil Nadu
17. Ludhiana ---------Sutlej  Victoria Memorial, Kolkata, West Bengal
18. Karachi (Pak)------- Indus  City Palace, Jaipur, Rajasthan
19. Yangon (Myanmar) -------Irawady  Shankar International Dolls Museum, New Delhi
20. Akyab (Myanmar)------ Irawady  Coswaji Jehangir Hall, Mumbai, Maharastra
21. Vijaywada-------- Krishna  Napier Museum, Thiruvananthapuram, Kerala
22. Lahore (Pak)------ Ravi  Library of Tibetan Works and Archives, Dharamshala,
23. Paris (France)---------- Seine Himachal Pradesh
24. Hamburg (Germany)------- Elbe  National Rail Museum, New Delhi
25. Budapest (Hungary)----- Danube  National Handicrafts and Handlooms Museum, New
26. Rome (Italy) -------Tiber Delhi
27. Warsaw (Poland)----- Vistula  Hawa mahal museum-Jaipur City, Rajasthan
28. Bristol (U.K.) ------Avon
29. London (U.K.) ------Thames FAMOUS TEMPLES
30. New Castle (U.K.) -------TyreChina
 Kamakhya Temple, Guwahati, Assam
31. Shanghai ------Yang-tse-Kiang
 Sukresvara temple, Assam
32. Nanking -----Yang-tse-Kiang
33. Chungking------- Yang-tse-Kiang  Mahabalipuram Temple, Tamil Nadu
34. Canton ------Si-Kiang  Meenakshi temple, Madurai, Tamil Nadu
 Brihadeeswarar Temple, Tamil Nadu
Europe  Kanchipuram Temple, Tamil Nadu
1. Berlin (Germany)----- Spree  Srisailam Temple, Andhra Pradesh
2. Belgrade----- Dunube  Tirupathi Temple, Andhra Pradesh
3. Cologne (Germany)------ Rhine  Sree Padmanabhaswamy Temple, Kerala
4. Lisbon (Portugal)------ Tangus  Shabarimala ayyappa temple, Kerala
5. Glasgow (Scotland)------ Clyde  Gomateshwra Temple, Karnataka
84
 Virupaksha Temple, Bangalore (Karnataka)

USA  Golden temple, Amritsar, Punjab
Page
1. New York------- Hudson  Somnath temple, Gujarat

2. Philadelphia------ Delaware  Siddhivinayak Temple, Maharashtra
 Mahabodhi Temple, Gaya, Bihar
 Amarnath Temple, Jammu & Kashmir
 Markandeshwar Temple, Haryana
 Konark Sun Temple, Odisha DEDICATION
 Birla Mandir, Jaipur
"To two precious diamonds of my life, my beloved
POPULAR INTERNATIONAL FESTIVALS
Mother SNEHALATA NAYAK and to my friend,
1. Harbin Ice and Snow Festival, China (January 5-
philosopher & Guide my Father MANMATHA NAYAK
February 5): People build incredible things out of ice
and snow, decorating them with lights and lasers.
2. Up Helly Aa Fire Festival, Scotland (January): Torches, Disclaimer: Every effort has been made to provide error
tar barreling, parties, flamboyant costumes, and the free information & all the information in this book from the
burning of a replica viking ship make this an exciting sources believed to be reliable and true. However YOUR
festival. MENTOR (www.gcnayak.blogspot.com) or the Author
3. Pingxi Lantern Festival, Taiwan (February): People doesn‘t take any responsibility for the absolute accuracy of
write their wishes on fire lanterns and release them any information given & the damage or loss suffered
into the sky en masse, creating a beautiful spectacle thereupon.
of floating lights.
4. The Battle of the Oranges, Italy (February): An Utmost care has been taken to provide error free
enormous food fight where people form organized information, if any error found, kindly bring to my notice at
teams and throw oranges at each other. gopalnayak123@gmail.com.Your constructive suggestions
5. Frozen Dead Guy Days, Nederland (March): Dress up for improvement of this book will be highly appreciated.
like a frozen dead guy and participate in events like a
coffin race, a polar plunge, a parade, and partying. Author
6. Songkran Water Festival, Thailand (April 13-15): The
Thai New Year festival falls on some of the hottest
days in Thailand, and people celebrate by throwing
water on each other, using water guns, buckets,
hoses- whatever they can get their hands on
7. Sand fest, Port Aransas, Texas (April): An amazing
sand sculpture contest with live entertainment. More books by the Author:
8. Festival of the Sun, Peru (June 24): Expositions, street
fairs, and live music mark the celebration of the sun 1. Objective Computer Fundamentals for
god.
9. La Tomatina, Spain (last Wednesday in August): The Bank PO/Clerk Exams.
whole point of this festival is to throw tomatoes at 2. Banking Awareness Hand book for
people. Yeah. It‘s awesome.
10. Obon Fesitval, Japan (August): Families release
Bank Exams & Interviews.
floating lanterns into the water to represent their 3. Aptitude Skill Test for Banking
ancestors‘ spirits being sent off. 4. Banking Awareness FAQs
11. Gay Pride Parade, Amsterdam, Netherlands (first
weekend of August): A huge gay pride festival, 5. Spotting Errors in English
include a canal parade down the river on boats. 6. Aptitude 20-20
12. Grape Throwing Festival, Spain (last weekend in
September): Throw huge amount of grapes at people
and participate in other fun events. (Softcopy of these books are available at
13. Día de los Muertos (Day of the Dead), Mexico www.gcnayak.blogspot.in)
(November 2): Friends and family gather to celebrate
loved ones who have passed on, through elaborate
traditions of food, art, colors, and culture. Join YOUR MENTOR (Study Group) on Facebook
14. Monkey Buffet Festival, Thailand (end of November): for static GK, Banking & Computer Articles
The point of this festival is to give fruits and
vegetables to monkeys and attract tourism. It works.
15. Love Parade, Germany (canceled): One of the world‘s
biggest festivals, celebrated from 1989-2003 & 2006- https://www.facebook.com/groups/1523071864688
2010, it included electronic music, costumes, and ―let- 055/
lose‖ behavior. Unfortunately due to the tragic deaths
of 21 participants in 2010 due to overcrowding, the
Love Parade has been permanently canceled. Like YOUR MENTOR Facebook Page
16. Boryeong Mud Festival, South Korea:
17. Running the Bulls, Spain
YOUR MENTOR https://www.facebook.com/yourmentor2012/

85
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BANKING AWARENESS HAND BOOK

REVISED & ENLARGED EDITION

Content Highlights Key Features:

 State bank of Bikaneer & Jaipur (Rajastan)

Reasons for Nationalization:

 To increase public confidence in banking system.

Money, Finance & Capital:

Currency Devaluation: It‟s Impact on Economy:

Banking System in India:

Public Sector Private Sector State Co- Central Co- PACS(Primary

Nationalized SBI Other OLD (16) NEW (15) Including

OGB(Odisha Gramya Bank) –Sponsored By - IOB

Foreign Banks Having Branches in India

Foreign Banks Having Representative office in India

GPF(General Provident Fund) PPF(Public Provident Fund) EPF(Employees Provident Fund)

WB(World Bank) IMF(International Monetary Fund)

 Accepting Deposits (Deposits)

Some other functions of bank are:

The banker-customer relationship terminates when any of these occurs:

 Termination by the Customer

 Savings bank(focuses on savings deposit from customer)

 Co-operative bank(Registered under co-operative societies act-1912)

Other A/C Include

FOR INDIANS FOR NRI/PIO/OCIs OTHERS

Domestic Foreign Domestic Foreign DEMAT A/C

BSBDA (Basic Savings Bank Deposit Account):

Main Points of BSBDA-Small Accounts:

1. Aadhar Card is mandatory for e-KYC.

Resident Foreign currency account (RFC):

exchange received as pension/gift/inheritance, realization of assets held abroad,

Exchange Earners Foreign Currency Account (EEFC):

NRO (Non Resident Ordinary) A/C:

 These accounts are maintained in Indian rupees (INR).

NRE (Non Resident External) A/C:

 These accounts are maintained in Indian rupees (INR).

FCNR (Foreign Currency Non Resident) A/C:

 To buy or sell stocks we have to open a Demat account.

Dormant (Inoperative) & Unclaimed A/C:

Pigmy Deposit A/C:

Types of ATM (Automated Teller Machine):

 Green Label ATM: Provided for Agricultural Transaction.

 Orange Label ATM: Provided for Share Transaction.

 Yellow Label ATM: Provided for E-Commerce.

 Pink Label ATM: Provided for Women Banking.

There are 3 different types of card such as

Electronic Fund Transfer (EFT):

ELECTRONIC FUND TRANSFER (EFT)

Within India Abroad

NEFT RTGS IMPS SWIFT

RTGS Charges: (2 to 5 Lakh)-Rs 30/Txn & >5 Lakh-Rs 55/Txn.

 SWIFT(Society for Worldwide Interbank Financial Telecommunication) Transfer:

 IFSC (Indian Financial System Code):

 MICR (Magnetic Ink Character Recognition) Code:

 89- year 1989

 133251-Day‘s serial no or unique reference number

Forex facilities available for Residents/Individuals in India:

ECS (Electronic Clearing Service):

“Indo-Nepal Remittance Facility Scheme”:

Cash Credit Vs Overdraft:

Credit Information Company(CIC):

 Credit rating agency(CRA):

Leading Credit Rating Agency in World –