Professional Documents
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67802/98
Postal Regn. No.CHD/0001/2015-17
Posted at - MBU Chandigarh on 7th/10th
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ANKING
POLICY
(COMPILATION- SAPANDEEP TOOR & MANJOT TOOR, in Sydney, Australia - on the basis of information available on RBI Website)
CORRESPONDENCE
COURSE
As per extant instructions, banks may shift investments to/from HTM with the approval
of the Board of Directors once a year and such shifting will normally be allowed at the
beginning of the accounting year. RBI decided to allow such shifting of the excess
securities, as also direct sale from HTM category, at the beginning of every quarter
when the HTM ceiling is brought down. This would be in addition to the shifting permitted
at the beginning of the accounting year, i.e., in the month of April. Such transfer to AFS/
HFT category as well as sale of securities from HTM category, to the extent required to
reduce the SLR securities in HTM category in accordance with the regulatory instructions, would be excluded from the 5% cap prescribed for value of sales and transfers of
securities to/from HTM category.
Investment by Foreign Portfolio Investors (FPI) in Corporate Bonds
As per extant RBI guidelines, all future investments by Foreign Portfolio Investors (FPI)
in NCDs/bonds are to be made in securities with a min residual maturity of three years.
On a review, RBI decided (26.11.15) to permit FPI to acquire NCDs/bonds, which are
under default, either fully or partly, in the repayment of principal on maturity or principal
installment in the case of amortising bond. The revised maturity period of such NCDs/
bonds, restructured based on negotiations with the issuing Indian company, should be
three years or more.
Such investment should be within the overall limit prescribed for corporate debt from
time to time (currently Rs. 2443.23 billion). All other existing conditions for investment
by FPIs in the debt market remain unchanged.
Advance Remittance for Import of aircrafts /helicopters / other aviation
related purchases
As per extant RBI guidelines, AD Category I banks could allow advance remittance,
without bank guarantee or an unconditional, irrevocable standby letter of credit up to
USD 50 million, in the case of import of aircrafts/ helicopters/ other aviation related
purchases by scheduled air transport operators permitted by the Director General of
Civil Aviation (DGCA), after ensuring that the requisite approval of the Ministry of Civil
Aviation (MoCA)/ DGCA / other agencies in terms of the extant Foreign Trade Policy, had
been obtained by the company for import.
The Director General of Foreign Trade vide Notification dated October 9, 2015 has
announced that the approval from MoCA will not be required. (RBI direction 26.11.15)
Import of Goods into India Evidence of Import
As per extant RBI policy (19.10.2003), an importer has to submit as evidence of import,
(a) the exchange control copy of the Bill of Entry for home consumption; (b) the exchange control copy of the Bill of Entry for warehousing, in the case of 100% Export
Oriented Units (EOUs); or (c) Customs Assessment Certificate or Postal Appraisal Form
as declared by the importer to the Customs Authorities.
RBI advised AD banks (26.11.15) to consider the Bill of Entry issued by Customs Authorities (in Free Trade Warehouse Zones / SEZ Unit warehouse) named as Ex-Bond Bill of
Entry or by any other similar nomenclature, as evidence for physical import of goods.
Further, in cases where goods have been imported through couriers, the Courier Bill of
Entry, as declared by the courier companies to the Customs Authorities, may also be
considered as evidence of import of goods.
Bank Finance to Factoring Companies
In terms of extant RBI guidelines, banks can extend financial assistance to support the
factoring business of Factoring Companies complying with certain criteria, which, interalia, included:
They derive at least 75% of their income from factoring activity.
The receivables purchased / financed, irrespective of whether on with recourse or
without recourse basis, form at least 75% of the assets of the Factoring Company.
The criteria regarding asset and income of factoring companies eligible for bank finance
have been revised by RBI (26.11.15) to 50% from 75%.
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BANKING FEATURES
not be increased except on account of deterioration in
the credit risk profile of the customer. Any such decision
regarding change in spread on account of change in credit
risk profile should be supported by a proper risk profile
review of customer. This stipulation is not applicable to
loans under consortium / multiple banking arrangements.
c) Interest Rates on Loans
i. Actual lending rates will be determined by adding the
components of spread to the MCLR. There will be no
lending below the MCLR of a particular maturity for all
loans linked to that benchmark.
ii. The reference benchmark rate used for pricing the
loans should form part of the terms of the loan contract.
d) Exemptions from MCLR
i. Loans covered by schemes formulated by Govt. of India
wherein banks have to charge interest rates as per the
scheme.
ii. Working Capital Term Loan (WCTL), Funded Interest Term
Loan (FITL), etc. granted as part of the rectification/restructuring package.
iii. Loans granted under various refinance schemes formulated by Govt. of India or any Government Undertakings wherein banks charge interest at the rates prescribed
under the schemes to the extent refinance is available.
Interest rate charged on the part not covered under refinance should adhere to the MCLR guidelines.
iv. The following loans can be priced without being linked
to MCLR as the benchmark for determining interest rate:
(a) Loan to banks depositors against their own deposits.
(b) Loan to banks own employees including retired employees.
(c) Advances granted to the Chief Executive Officer / Whole
Time Directors.
(d) Loans linked to a market determined external benchmark.
(e) Fixed rate loans granted by banks. However, in case of
hybrid loans where the interest rates are partly fixed and
partly floating, interest rate on the floating portion should
adhere to the MCLR guidelines.
e) Review of MCLR
i. Banks shall review and publish their MCLR of different
maturities every month on a pre-announced date with
the approval of the Board or any other committee, to
which powers have been delegated.
ii. Banks not having adequate systems to carry out the
review of MCLR on a monthly basis, may review their rates
once a quarter on a pre-announced date for the first
one year i.e. upto March 31, 2017. Thereafter, they should
adopt the monthly review system.
f) Reset of interest rates
i. Banks may specify interest reset dates on their floating
rate loans. Banks can offer loans with reset dates linked
either to the date of sanction of the loan/credit limits or
to the date of review of MCLR.
ii. MCLR prevailing on the day the loan is sanctioned, will
be applicable till the next reset date, irrespective of the
changes in the benchmark during the interim.
iii. The periodicity of reset shall be one year or lower.
BANKING FEATURES
The exact periodicity of reset shall form part of terms of loan contract.
g) Treatment of interest rates linked to Base Rate charged to existing
borrowers
i. Existing loans and credit limits linked to the Base Rate may continue till
repayment or renewal, as the case may be.
ii. Banks will continue to review and publish Base Rate as hitherto.
iii. Existing borrowers will also have the option to move to the Marginal
Cost of Funds based Lending Rate (MCLR) linked loan at mutually acceptable terms. However, this should not be treated as a foreclosure of existing facility.
Methodology for computing marginal cost of funds
Marginal cost of funds = (Rates offered on deposits on date of review / rate at which
fund raised) x Balance outstanding as on previous day of review as a percentage of
total funds other than equity.
Notes : 1. Deposits
a) Current Deposits : The core portion of current deposits identified based on ALM
guidelines (Oct 24, 2007) should be reckoned for arriving at the balance outstanding.
b) Savings Deposits : The core portion of savings deposits identified based on ALM
guidelines (Oct 24, 2007) should be reckoned for arriving at the balance outstanding.
c) Fixed Rate Term deposits various maturities should be included.
d)Floating rate Term deposits : The rate should be arrived at based on the prevailing
external benchmark rate on the date of review.
e) Foreign currency deposits to the extent used for lending in rupees, should be
included. The swap/hedge cost of should be reckoned for computing marginal cost.
2. Borrowings
a) Short term Rupee Borrowings : Interest payable on each type of short term
borrowing will be arrived at using the average rates at which such short term borrowings
were raised in the last one month.
b) Long term Rupee Borrowings - Option 1: Interest payable on each type of borrowing will be arrived at using average rates at which such long term borrowings were
raised.
Option2: The appropriate benchmark yield for bank bonds published by FIMMDA for
valuation purposes will be used as the proxy rate for calculating marginal cost.
c) Foreign Currency Borrowings including HO borrowings by foreign banks (other
than those forming part of Tier-I capital) - FC borrowings, to the extent deployed for
lending in rupees, should be included in computing marginal cost of funds. The all-incost of raising foreign currency borrowings including swap cost and hedge cost would
be reckoned for computing marginal cost of funds.
Marginal cost of borrowings : The marginal cost of borrowings shall have a weightage
of 92% of Marginal Cost of Funds while return on networth will have the balance
weightage of 8%.
Methodology for computing Return on networth
Amount of common equity Tier 1 capital required to be maintained for Risk Weighted
Assets as per extant capital adequacy norms shall be included for computing marginal
cost of funds. Since currently, the common equity Tier 1 capital is (5.5% +2.5%) 8%
of RWA, the weightage given for this component in the marginal cost of funds will be
8%.
In case of newly set up banks (either domestic or foreign banks operating as branches
in India) where lending operations are mainly financed by capital, the weightage for
this component may be higher ie in proportion to the extent of capital deployed for
lending. This dispensation will be available for a period of three years from the date
of commencing operations.
The cost of equity will be the minimum desired rate of return on equity computed as
a mark-up over the risk free rate. Banks could follow any pricing model such as Capital
Asset Pricing Model (CAPM) to arrive at the cost of capital. This rate can be reviewed
annually.
Marginal cost of funds = 92% x Marginal cost of borrowings + 8% x Return on
networth
BANKING FEATURES
Masala bonds
Masala Bonds represent the bonds issued for rupeedenominated borrowings by Indian entities in overseas
markets. The International Finance Corporation (IFC), an
investment arm of World Bank, issued Rs.1,000 crore bonds
(which named it Masala Bonds) to fund infrastructure
projects in India in Nov 2014. These bonds were listed on
the London Stock Exchange (LSE). The name Masala bonds
was chosen to give a flavour of Indian culture and cuisine.
The debt instruments (bonds) have been named after
food stuffs in the past also (Chinese bonds, named Dimsum bonds after a popular dish in Hong Kong, Japanese
bonds named Samurai after the countrys warrior class).
Benefit of issuing Masala Bonds: An Indian company or
issuer of an overseas bond offering bonds in foreign currency runs the risk exchange price fluctuation (foreign
exchange risk). The weakening of the Rupee during the
tenure of the bond can add significantly to costs at the
time of redemption or repayment. By pricing or issuing
bonds in Rupees, is able to pass on the exchange risk to
the investors.
In addition, borrowing overseas can be relatively cheap
compared to borrowing in India, with average costs difference of at least 200 basis points.
Further, it offers new and diversified set of investors for
Indian companies, and more liquidity in exchanges such
as London, apart from bank funding and the corporate
bond market in India.
Benefit to foreign investor: An investor buying such bond
gains around 200 basis points above the globally accepted
pricing benchmark LIBOR (London Inter-bank Offered Rate)
after hedging for foreign exchange risks. With Indias GDP
or national income rising, and projected to grow at a
reasonably fast rate over the next few years, many overseas investors may like to buy into such bonds to earn
higher returns compared to the US and Europe where
interest rates are still low.
Impact : Many Indian companies with large borrowings
abroad donot hedge their debt exposure or cover their
risks. From the external balance sheet management point
of view, issue of Masala Bonds will provide a natural hedge
as it not give risk to foreign exchange risk.
Investment in Masala Bonds shall be a sign of acceptance
of the Indian currency in trading and settlement overseas.
This will be testing the internationalisation of the Indian
currency over the medium and long term.
.......Interest Equalization Scheme for Export Credit
BANKING FEATURES
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DS Institute of Banking
Office:SCO No.32, Sector 33-D,
Chandigarh 160 020
Ph: 0172-2665623, 9988221167
email - banking121@gmail.com
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R
8
Maintenance of SLR
RBI decided (Dec 10, 2015) to reduce the Statutory Liquidity Ratio
(SLR) of scheduled commercial banks, local area banks, primary
(Urban) co-op banks (UCBs), state co-op banks and central cooperative banks from 21.5% of their Net Demand and Time Liabilities (NDTL) to:
(i) 21.25% from April 2, 2016;
(ii) 21.00% from July 9, 2016;
(iii) 20.75% from October 1, 2016; and
(iv) 20.50% from January 7, 2017
of their total NDTL in India as on the last Friday of the second
preceding fortnight, valued in accordance with the method of valuation specified by RBI from time to time.
Hencewith effective from the dates given above these banks shall
maintain in India, SLR assets the value of which shall not, at the
close of business on any day, be less than the percentages above.
For SLR assets:
A. Scheduled commercial banks & local area banks:
(a) cash; or (b) gold valued at a price not exceeding the current
market price: or (c) unencumbered investment in any of the following instruments :
(1) Dated securities of Govt. of India issued under the market
borrowing programme and the Market Stabilization Scheme ; or
(2) Treasury Bills of the Government of India; or
(3) State Development Loans (SDLs) of the State Governments
under the market borrowing programme:
(d) the deposit and unencumbered approved securities required,
under Section 11 of the Banking Regulation Act, to be made with
RBI by a banking company incorporated outside India;
(e) balance maintained by a scheduled bank with RBI in excess of
the CRR balance to be maintained by it u/s 42 of RBI Act,1934 ;
The instruments referred to in items (1) to (3) above acquired from
RBI under Liquidity Adjustment Facility (LAF), shall not be included
as SLR securities for the purpose of maintenance of SLR assets;
Further, the following securities shall not be treated as encumbered for the purpose of maintenance of SLR assets:
(a) securities lodged with another institutionfor an advance or any
other credit arrangement to the extent to which such securities
have not been drawn against or availed of;
(b) securities offered as collateral to RBI for availing liquidity assistance from Marginal Standing Facility (MSF) up to the permissible
percentage of the total NDTL in India, carved out of the required
SLR portfolio of the bank concerned; and
(c) securities offered as collateral to RBI for availing liquidity assistance under Facility to Avail Liquidity for Liquidity Coverage Ratio.
B. Primary (Urban) co-operative banks:
(a) Cash, or (b) Gold valued at a price not exceeding the current
market price, or (c) Unencumbered investment in approved securities as defined in section 5(a) of the Banking Regulation Act, 1949
read with section 56 thereof:
Provided that the instruments acquired from RBI under LAF shall
not be included as SLR securities for maintenance of SLR assets;
Provided further that the following securities shall not be treated
as encumbered for maintenance of SLR assets:
The securities lodged with another institutionfor an advance or any
other credit arrangement to the extent to which such securities
have not been drawn against or availed of;
C. State co-op bank (StCB) and Central co-op bank (CCB):
(a) Cash, or (b) Gold valued at a price not exceeding the current
market price, or (c) Unencumbered investment in approved securities as defined in Section 5(a) of the Banking Regulation Act, 1949
read with Section 56 thereof.
Compilation : Manjot Kaur Toor (Sydney - Australia) (Source Website of RBI).
BANKING FEATURES
Provided that the following securities shall not be treated as encumbered for the purpose of maintenance of SLR assets:
The securities lodged with another institution for an advance or
any other credit arrangement to the extent to which such securities have not been drawn against or availed of.
Notwithstanding anything contained hereinabove,
i. Unencumbered balances maintained by a Central co-op bank with
the State co-op bank of the State concerned, in excess of the CRR
balance required to be maintained by it u/s 18 of the Banking
Regulation Act, 1949 read with section 56 thereof;
ii. Any unencumbered term deposits maintained by a Central coop
bank with the State co-op bank of the State concerned; and
iii. Unencumbered term deposits held by a State co-op bank or a
central co-op bank with SBI or a subsidiary bank or a corresponding
new bank or IDBI Bank Ltd.
shall also be deemed to be assets for calculating the percentage
specified, till March 31, 2017. However, SLR on incremental NDTL
over the level as on July 25, 2014 shall be maintained by StCBs /
CCBs in the form of approved assets. Maintenance of SLR in the
form of approved assets on NDTL as on July 25, 2014 shall be as
per the roadmap advised as under.
March 31, 2016 : 10% of NDTL as on July 25, 2014 to be maintained
in assets as mentioned at (c) above
From April 1, 2017: Entire SLR as prescribed by RBI as on that date
in assets as mentioned in (a) to (c) above
Green bonds
A bond is a debt instrument with which an issuer raises
money from investors. A green bond is a bond where
the issuer of the bond, publicly states that capital is
being raised to fund green projects. Green projects
typically include those projects that relate to renewable energy, emission reductions and so on.
The green bonds are issued by multilateral agencies
such as the World Bank, corporations, government agencies and municipalities. Institutional investors and pension funds generally invest in these bonds.
In the past, certain Indian entities (such as Indian Renewable Energy Development Agency Ltd and Greenko)
issued bonds without the tag of green bonds, but the
proceed were used for financing renewable energy.
In March 2015, Exim Bank of India issued a five-year
$500 million green bond, which is Indias first dollardenominated green bond. Exim Bank proposes to use
the net proceeds to fund eligible green projects in
countries including Bangladesh and Sri Lanka.
In February 2015, Yes Bank also raised Rs 1,000 crore
by issue 10-year Green Infrastructure bonds.
Important of Green Bonds for India: India has an ambitious target of building 175 gigawatt of renewable energy capacity by 2022 (30 gigawatt at present) which
requires a massive funding of $200 billion. The budget
allocations for this have been insufficient. Further, as
per reports, the higher interest rates and unattractive terms under which debt is available in India, raises
the cost of renewable energy by 24-32% compared to
the U.S. and Europe.
In the light of these, for funding the renewable energy
in India, the green bonds appear to be a good option.
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10
Financial Events
revenue spending classification, which the finance ministry feels is better able
to link expenditure to outcomes. An expert committee headed by C.Rangrajan
had also in 2011 proposed that the distinction between plan and non-plan
expenditure be abolished for both the Centre and the States.
COMPUTER-BASED SCRUTINY TO BE USED BY CBDT: The process of
selecting tax cases is being replaced by a system-based centralized approach.
For the past several years, the process of selecting of cases for scrutiny on a
random basis has been dispensed away with. Instead, CBDT has devised a
system-based in a centralized manner through CASS (Computer Assisted Scrutiny
Selection) whereby the selection is made on the basis of detailed analysis of risk
parameters and 360 degree data profiling of tax payers.
PARLIAMENTARY PANEL FOR HUB OF INSTITUIONAL ARBITRATION:
The Parliamentary Panel headed by EM Sudarshna Natchappan recommended
that institutional arbitration with accredited arbitrators may be provided to the
commercial entities so that they could avail themselves in India the route of
either commercial court or arbitration for resolving their commercial disputes.
The report of the panel highlighted that most of the commercial entities prefer
international arbitration available in Singapore, London and Dubai. The committee
also said that the award of the arbitration should be binding on the parties
without giving the option to the parties to challenge the same in the court of law.
CBDT SIMPLIFIED ONLINE TAX RECTIFICATION: In a move aimed to helping
tax payers, the Central Board of Direct Taxes (CBDT) has simplified the process
of online rectification of incorrect tax deducted at source (TDS) details filed in the
income tax return. A new facility has been provided for pre-filling of TDS schedule
while submitting the online rectification request on the e-filing portal for easy
correction and updating of such details.
GOVT. TO EMPOWER BBB TO SELECT AUDIT FIRMS FOR PSBs: The
government is likely to empower the proposed Bank Board Bureau (BBB) to select
Audit Firms for Public Sector Banks as part of its larger initiative to strengthen
their corporate governance practices. At present, individual public sector banks
(PSBs) choose their auditors themselves from a list of approved firms by RBI.
CBDT REVISES MONETARY LIMITS FOR APPEALS: In order to cut down on
frivolous litigation and taxpayers grievances, CBDT has issued fresh directives
revising the monetary limits for the taxmen to appeal at two important legal
forums- ITAT and high courts. It has asked the Income Tax Department to go into
appeal at the Income Tax Appellate Tribunal (ITAT) only when the tax effect in
question is Rs.10 Lakh (Earlier Rs.4 Lakh) and Rs.20 Lakh from earlier Rs.10 Lakh
if the appeal is to be filed in high court. Monetary limit for filing appeals or Special
Leave Petitions in Supreme Court has been kept unchanged at Rs.25 Lakh.
SUPREME COURT RULING ON BOUNCED CHEQUES: The Supreme Court has
ruled in a large number of appeals that in case of bounced cheques, the complaint
could be filed in the place where the cheques were dishonored and not where it
was issued. This principle which was laid down by the court last year has now
been affirmed in the Negotiable Instruments (Amendment) Ordinance this year.
This rule has come into effect with retrospective effect from June this year.
EDUCATION LOAN INTEREST SUBSIDY CLAIMS: The Central Scheme of
Interest Subsidy on Education Loans was announced in the Union Budget 2014
and has now been closed in accordance with the instructions from the Ministry of
Finance. Canara Bank has been the Nodal bank for its implementation. The
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12
GENERAL AWARENESS
The Institute which plans e-hearing facility
for disciplinary cases- CA Institute.
Industrialist who launched Nyay Bharti
Initiative with annual corpus of Rs.100
Crore being legal aid to the poor- Sunil Bharti
Mittal, Chairman of Bharti Enterprises As per India Skills Report, the State which
ranks First among all states with largest
employability level- Andhra Pradesh.
New technology which can offer internet
speed one hundred times faster than the
WiFi and achieve up to 224 GB per secondLiFi.
Private Banking operations have been shut
down in India by- HSBC Holdings.
The Billionaire, who is turning his energy to
a stationary bicycle that can meet a rural
households electricity needs for 24 hoursManoj Bhargava.
As per India Skills report, the State which
has ranked First among preferred states for
working women in India- Tamil Nadu.
The state where the President opened
Worlds largest Mahatma Gandhis Archive
at the Sabarmati Ashram- Gujarat.
The place where Global Climate Summit is to
take place on November 30- Paris.
To make Chinese currency accessible to
regional and global participants, the Dubai
Gold and Commodities Exchange is set to
launch Yuan Futures
As per survey conducted by Nielsen, the
Bank which is the only bank to be featured
in 100 brands Indias Most Valued Banking
Brand- SBI.
The State which has topped in operational
Special Economic Zones- Tamil Nadu.
The State where countrys First Smart
Manufacturing Hub is likely to come upTelengana.
The Bank which has celebrated its Second
Foundation Day on 19th November- Bhartiya
Mahila Bank..
Facebook Founder who gave away 99% of
their company shares worth about $45 billion
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DIARY OF EVENTS
The State in which countrys First Medical Devices Park
is to be set up under the Make in India MissionGujarat.
The country whose Rating has been cut to Junk with
Negative Outlook by FITCH- Brazil.
The city in India which has been rated 6th Most
Expansive Office Hub in the World- Delhis Connaught
Place.
The bank which becomes the First Bank in the country
to introduce e-sign an online electronic signature
service- Axis Bank.
Former Defence Secretary RK Mathur has been
appointed as Chief Information Commissioner.
Noble Laureate who has been made a Saint of Roman
Catholic Church- Mother Teresa.
The company which has made to the Top 50 League of
the Worlds Biggest Companies in terms of R&D
investments- Tata Motors.
The company whose 116 employees are drawing more
than Rs.1 Crore in annual remuneration but 70% of
them are Koreans- Samsung India.
The country which got First Beauty Queen (Shyamaa
Abdelrahman) since 1972- Iraq.
The Tribunal which has banned both President and
Vice-President of FIFA for 8 years from all football
activity due to high scandal- Ethics Tribunal of FIFA.
The country which allowed couples to have two
children to counter shrinking work force and a rapidly
ageing population-China.
The Bill, which passed by Rajya Sabha, provides for
the treatment of juveniles between the ages of 16
and 18 as adults when accused of heinous crimes
such as murder and rape- Juvenile Justice Bill.
The Bill which has been referred to the Joint
Parliamentary Panel by the Lok Sabha- Insolvency
and Bankruptcy Code 2015.
The Country which became the First Asian country to
approve the sale of the Worlds First dengue vaccinePhilippines.
The commodity for which the Government has done
away with the Minimum Export Price due to falling
prices in the domestic market- Onions.
The Country which issued Pollution Red- Alert- China.
The Car which has won the 2016 Trophy- Hyundai
Creta.
The Vehicles whose age has been fixed at 15 years
and which to be off-roads as per Govt. Notification
likely to come soon- Commercial Vehicles.
The country whose Parliament Building has been
inaugurated by PM Narendra Modi on 24 th
Afghanistan.
The country whose President Salva Kiir created 28
new states- Sudan.
The popular social networking platforms, which the
Employees Provident Fund Organization launched
during Good Governance Day Event-Facebook and
Twitter.
China-backed Bank in which India , a Founder Member
with other 56 countries has been established in Beijing
on 25th- Asian Infrastructure Investment Bank.
Source : Financial Newspapers, Financial News-Magazines & Financial and Institutional Web-sites
MOCK-TEST
PAPER
01
a
b
c
d
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Rs.24000
Rs.26100
Rs. 27000
inadequate information
Ashwani, a saving bank customer of your
branch has deposited certain shares with
your branch for safe custody. This
transaction of keeping articles in safe
custody is governed by:
a Indian Contract Act 1872
b Negotiable Instruments Act
c Banking Regulation Act
d Transfer of Property Act
42 What period is available as limitation in
case of mortgage:
a 3 years from date of mortgage
b 12 from date of mortgage
c 12 years from the date when the
mortgage money has become due
d 12 years from date of loan
e 12 years from date of loan or date or
mortgage, whichever lower.
43 Within how many days does the annual
return of unclaimed deposit accounts is
required to be submitted by banks to
RBI, following the days after close of
the calendar year:
a 15 days
b 23 days
c 30 days
d 45 days
e 60 days
44 Which of the following will be considered
a micro enterprise:
a engaged in manufacturing and maximum
investment in equipment restricted to
Rs.25 lac
b engaged in services and maximum
investment in plant and machinery
restricted to Rs.10 lac
c engaged in manufacturing and maximum
investment in plant and machinery
restricted to Rs.10 lac
d engaged in services and maximum
investment in equipment restricted to
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8 paise
10 paise
25 paise
Business firms are sanctioned working
capital limits to provide finance for which
of the following:
fixed assets, trade debtors, stocks, cash
holding
fixed assets, trade debtors, stocks,
trade creditors
pre-paid expenses, trade debtors,
stocks, cash holding
trade debtors, stocks, cash holding,
trade creditors
The CERSAI created under SARFAESI Act
2002, is an abbreviation for which of the
following:
Central Electronic Registry of Secured
Asset and Reconstruction of Security
Interest of India
Central Electronic Registry of
Securitization Asset Reconstruction and
Security Interest of India
Central Electronic Registration of
Securitization Asset Reconstruction and
Security Interest
Compulsory Electronic Registry of
Securitization Asset Reconstruction and
Security Interest
A loan had become doubtful account as
on March 15, 2012. On this loan account,
the provision as on Mar 31, 2015 would
be at the rate of:
100%
b
75%
60%
d
50%
30%
Which kind of charge out of the following
is not possible on stocks, in favour of a
bank:
pledge
assignment
hypothecation
lien
There is a self operated FD in the name
of a minor, who wants to nominate his
mother. What precautions you will take
a
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63
a
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a
1. Immovable property
i. Sale/ purchase exceeding Rs.10 lakh;
(Existing : Amount Rs.5 lac or more)
ii. Properties valued by Stamp Valuation
authority at amount exceeding Rs.10 lakh
will also need PAN.
2. Motor vehicle (other than two wheeler)
: All sales/purchases (Existing - No change)
3. Time deposit
i. Deposits with Co-op banks, Post Office,
Nidhi, NBFC companies will also need PAN;
ii. Deposits aggregating to more than Rs.5
lakh during the year will also need PAN
(Existing - Time deposit exceeding
Rs.50,000/- with a banking company)
4. Deposit with Post Office Savings Bank
: Discontinued (Existing - Exceeding
Rs.50,000)
5. Sale or purchase of securities
Contract for sale/purchase of a value
exceeding Rs.1 lakh (No change)
6. Opening an account (other than time
Diploma in
Banking & Finance
It is a desirable qualification for
recruitment of PO or Clerk (as per IBA).
Benefits : Enhanced chances of selection.
Financial & promotion benefit on joining
a bank It is equal to JAIIB. Hence direct
exam of CAIIB can be attempted.
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Eligibility is 10+2 pass.
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DATA COLUMN
Business of Banks
(Rs.in cr)
Aggregate deposits
Cash in hand/RBI
Investments
Bank Credit:
-Food
-Non-Food
Cash-Deposit Ratio
Investment-Deposit
Credit-Deposit
Apr03'15
891148
420920
2550180
6830960
69230
6761740
4.80
30.03
77.92
Dec11'15
9184960
438150
2746580
6966110
109390
6856720
4.77
29.90
75.84
(Rs.in cr)
Mar31'15
M3 (Out of which)
10545550
(a) Currency with public
1386350
(b) Demand deposits-Banks 890750
(c) Time Deposits - Banks
8253870
(d) Other deposits with RBI
14590
Dec11'15
11332470
1501520
936770
8879380
14790
3375170
7471420
2445580
Money Stock
(07.02.2015)
(15.02.2013)
(29.09.2015)
(29.09.2015)
(29.09.2015)
(29.09.2015)
Dec15
66.13
26034
7925
351107
1072
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