General Awareness for SBI PO and Clerk

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www.BankExamsToday.com
General
Awareness
For SBI, IBPS and other Govt exams
Ramandeep Singh
B.com (PU), MBA (PAU)

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Awards in India
Here are some awards which are given to the celebrities in India:
Award Type Name of Awards
Music AwardsMusic director, lyricists, male/female vocalists, song of the year and
album of the year
Sports
Awards
MAKA Award, Dronacharya Award,Dhyan Chand Award,Rajiv Gandhi
Khel Ratna Award
Civillian
Award
Bharat Ratna, Padma Vubhushan, Padma Bhushan and Padma Shri
Literacy
Awards
Ananda Purashkar, The Hindu Literary Prize,The Rabindra Puraskar and
Vayalar Awards
Gallantry
Awards
Param Vir Chakra, Vir Chakra and Mahavir Chakra
Bollywood
Awards
Filmfare Awards, OSCAR, Best Film, Best Male Debut, Best Supporting
Actor, Best Director, Best Comedian, Best Villain, Dadasaheb Phalke
Award
Achievements 2014
All the latest achievements related to any Indian Celebrity is cover in this section.
From below you may get all the latest happenings and news related to prizes and
honours which are received or will receive in the session 2014.
Padma Awards Winners List for the year 2014
Padma Vibhushan
Dr. Raghunath A. Mashelkar, Science and Engineering
Shri B.K.S. Iyengar, Others-Yoga

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Padma Bhushan
Shri T.H. Vinayakram, Art Ghatam Artist
Shri Kamala Haasan, Art-Cinema
Justice Dalveer Bhandari, Public Affairs
Prof. Gulam Mohammed Sheikh, Art Painting
Begum Parveen Sultana, Art Classical Singing
Prof. Padmanabhan Balaram, Science and Engineering
Padma Shri
Smt. Elam Endira Devi, Art Manipuri Dance
Shri Vijay Ghate, Art Instrumental Music Tabla
Smt Rani Karnaa, Art Kathak
Shri Bansi Kaul, Art Theatre
Ustad Moinuddin Khan, Art Instrumental Music
Shri Mohammad Ali Baig, Art Theatre
Ms. Nayana Apte Joshi, Art
Shri Musafir Ram Bhardwaj, Art Instrumental Music Pauna Manjha
Ms. Sabitri Chatterjee, Art Film
Prof. Biman Bihari Das, Art Sculptor

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International Organizations and their
Headquarters
Organisation Headquarters
United Nations Organisation New York
United Nations Childrens' Fund (UNICEF) New York
United Nations Population Fund (UNFPA) New York
United Nations Conference on Trade and Development
(UNCTAD)
Geneva
World Health Organisation Geneva
International Labour Organisation Geneva
International Committee of the Red Cross Geneva
World Trade Organisation Geneva
World Meteorological Organisation Geneva
World Intellectual Property Organization Geneva
International Standards Organisation Geneva
United Nations Educational Scientific and Cultural Organisation
(UNESCO)
Paris
Organisation for Economic Cooperation and Development
(OECD)
Paris
United Nations Industrial Development Organization (UNIDO) Vienna
International Atomic Energy Agency Vienna
Organisation of Petroleum Exporting Countries (OPEC) Vienna
International Monetary Fund (IMF) Washington DC
World Bank Washington DC
Amnesty International London
International Maritime Organisation London
Commonwealth of Nations London
International Court Of Justice The Hague

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Organisation Headquarters
Universal Postal Union Berne
Food and Agricultural Organisation (FAO) Rome
North Atlantic Treaty Organisation (NATO) Brussels
Transparency International Berlin
International Renewable Energy Agency Abu Dhabi (UAE)
South Asian Association for Regional Cooperation Kathmandu
Association of South East Asian Nations (ASEAN) Jakarta
Asia Pacific Economic Cooperation (APEC) Singapore
Organisation of Islamic Cooperation Jeddah
Indian Ocean Rim Association for Regional Cooperation Ebene, Mauritius
Organisation for the Prohibition of Chemical Weapons
The Hague, The
Netherlands
International Olympic Committee Lausanne, Switzerland
Worldwide Fund for Nature Gland, Switzerland
International Union of Pure and Applied Chemistry Zurich, Switzerland
World Economic Forum Geneva, Switzerland
International Hydrographic Organization Monaco
International Association of Athletics Federations (IAAF) Monaco
International Institute for Species Exploration New York, USA
International Institute for Sustainable Development Winnipeg, Canada

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Functions of Banks
Primary Functions
Accepting deposits
Most important function of a bank is to mobilize public funds. Bank provides safe
custody as well as interest to the depositors.
Saving deposit
Saving deposit account meant for those people who wants to save for future needs
and uncertainties. There is no restriction on number and amount of withdrawals.
Bank provides cheque book, ATM cum debit card and Internet banking facility.

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Depositors need to maintain minimum balance which varies across different
banks.
Fixed deposit or Term deposit
In fixed deposit account, money is deposited for a fixed tenure. Banks issues a
deposit certificate which contains name, address, deposit amount, withdrawal
date, depositor signatures and other important information.
Depositor can't withdraw money during this period. In case depositor want to
withdraw before maturity, banks levy pre-mature withdrawal penalty.
Current account
Current accounts are normally opened by businesses. Banks provide overdraft
facility for these accounts by which account holder can withdraw more money
than available bank balance. This act as a short term loan to meet urgent needs.
Bank charges high rate on interest and charges for overdraft facility because bank
need to maintain a reserve for unknown demands for overdraft.
Recurring deposit
In this type of account depositors deposits certain sum of money at regular period
of time. Benefit of recurring account is that it provides benefit of compounded
rate of interest and enables depositors to collect big sum of money.
Granting Loans and advances
Cash credit
It is a short term loan facility under which banks allows its customers to take loan
up to a certain limit, normally bank grants this loan against mortgage of certain
property.
Bank overdraft
Bank provides this facility to current account holders.Account holder can
withdraw money anytime up to the provided limit. He need to pay interest only on
borrowed amount for the period for which he took loan.

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Loans
Banks providing loans for various kinds of short term as well as long term needs.
Borrower pay back the loan in installments.
Discounting bills
In normal day to day business, sellers sends bills to buyer whenever they sell their
products and it is mentioned in bill to make payment in stipulated time. Lets take
it 30 days. In such conditions seller may discount the bill from bank for some
fees. In such situation bill discounting acts as short term loan. In case the buyer or
the drawer defaults, bank send the bill back to seller to drawer so that he may take
legal action against drawee or buyer.
Secondary functions
Agency functions
Funds transfer
Cheques collection

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Periodic payments/collection
Portfolio management
Utility functions
Issue of draft, letter of credit etc :-Letter of credit acts as an assurance
that in case the borrower defaults in making the payment, bank will make
the payment up to the amount mentioned in letter of credit
Locker facility
Underwriting of shares
Dealing in foreign exchanges
Project reports
Social welfare programs

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What is an NRE account?
NRE Account stands for Non-Resident (External) Account.
The NRE account can be opened by Non-Resident Indians (NRIs). The account
can be operated individually or jointly. Persons of Indian Origin are also eligible
for the account. In case of NRE accounts, nomination can be made for NRI or
PIO resident only.
The NRE account gives an opportunity to non-resident Indians to deposit money
in Indian Banks.
There could be multiple type of accounts under NRE. These include: Saving
Fund, Current Account , Recurring Deposit, or Term Deposit. The funds under
NRE are maintained in Indian Rupees as the currency.
The fund amount including the principal as well as the interest can be repatriated.
This facility may not be there in other accounts for NRIs. The repatriation could
be in foreign currencies.
The deposits under the NRE accounts are not taxable under Wealth Tax. Also, the
interest income is exempt from the income-tax.
While the NRE accounts are accessible only to NRI and PIO there might be some
special cases. NRIs who return to India for permanent settlement may hold the
account till maturity of their deposits.

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What are BASEL-III norms and why
are they important for India?
"Basel III" is a name given to reform measures for the Banking sector. It was
developed by the Basel Committee, hence the name. The measures are to
strengthen the regulation, supervision and risk management of the banking sector.
Aims of BASEL-III norms:
create an ability to absorb financial and economic shocks
Improve risk management and governance
Strengthen banks' transparency and disclosures
The reforms are targeted at the individual banks and banking institutions. It is also
aimed at reducing the system-wide risks.
The norms have received a positive appreciation in India. The Reserve Bank of
India (RBI) Governor, D. Subbarao in an interview to a newspaper mentioned that
BASEL-III norms would strengthen Indian banks.
The BASEL-III norms have provided important guidelines for Liquidity and
Capital. There are three important pillars defined for Capital.
Pillar I
Capital
Risk Coverage
Containing Leverage

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Pillar-II
Risk Management and Supervision
Pillar-III
Market Discipline
In order to meet the BASEL-III requirements, Indian banks would have to raise a
lot of external capital. While the norms would strengthen the robustness of banks
against risks, it will also have some effect on the profitability in the short run. The
norms would increase the cost of capital for the banks and have an adverse effect
on the reqturn on equity in the short run.

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What are Special Economic Zones (SEZ)
in India?
Special Economic Zone (SEZ) is an area where economic laws are more relaxed
than a country's typical or national laws. In India SEZs have been developed to
promote exports.
The Special Economic Zones (SEZs) Policy was announced in April 2000.
The Special Economic Zones Act, 2005, was passed by the Parliament in 2005.
The SEZ act came into effect in 2006.
The main objectives of the SEZ Act are:
(a) generation of additional economic activity
(b) promotion of exports of goods and services
(c) promotion of investment from domestic and foreign sources
(d) creation of employment opportunities
(e) development of infrastructure facilities
The major incentives and facilities available to SEZ developers include:-
Exemption from customs/excise duties for development of SEZs for authorized
operations approved by the BOA.
Income Tax exemption on income derived from the business of development of
the SEZ in a block of 10 years in 15 years under Section 80-IAB of the Income
Tax Act.
Exemption from minimum alternate tax under Section 115 JB of the Income Tax
Act.
Exemption from dividend distribution tax under Section 115O of the Income Tax
Act.

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Exemption from Central Sales Tax (CST).
Exemption from Service Tax (Section 7, 26 and Second Schedule of the SEZ
Act).

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Central Government Welfare
Schemes
Aam Aadmi Bima Yojna
Started - 02-10-2007
Objective - To provide life and accident insurance to people without land living
in rural areas
Working - Both State government and National government contributes Rs 200
each towards insurance one family member of age 18-59.
Money paid to insurance beneficiary
In case of natural death - Rs 30,000
In case death due to accident or permanent disability - Rs 75,000
In case of permanent disability due to any accident - Rs 37,500
Doodh Ganga
Goal - Provide interest free loan and capital subsidies to diary farmers
Indira Awaaz Yojna
Started - 1985
Objective - Prociding financial assistance to rural and urban poor for construction
of houses
Working - Financial assistance of Rs 70,000 in plain areas and Rs 75,000 in
difficult areas is provided.

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Construction of sanitary latrine and smokeless chullah is mandatory
Hiring a contractor is banned
House is allotted in the name of woman or jointly in the name of both man
and woman.
Prefernce is given to
Mentally challenge
Physical challenged
Woman headed houses
Transgenders
Widows and children of members of defence or police forces who died on
duty
Janani Suraksha Yojana
Started - 12 April 2005
Objective - JSY aims at reducing maternal deaths by promoting deliveries in
public and private health institutions
Working - Mother should be at least 19 year old and belong to BPL or SC/ST
category.
Government provides
Rs 500 in case of home delivery
Rs 600 in case of mother from municipal/corporation area delivering baby
in private or public health care center
Rs 700 in case of mother from rural area delivering baby in private or
public health care center

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Ladli Scheme
Started - 20 August 2008
Aim- Objective of this scheme was to raise the status of girl child and change the
social mindset of people towards girls in Haryana. (Separate scheme for Delhi)
Working - Financial assistance of Rs 5000 per family per year is given by state
government on the birth of second girl child. This scheme is available for parents
who are domiciles of Haryana.
Ladli Laxmi Yojna
Aim- Objective of this scheme was to raise the status of girl child and change the
social mindset of people towards girls in Madhya Pradesh.
Working - Government purchases National saving certificate worth Rs 6000 per
year for four years for every girl child born after 01-04-2008 and whose parents
are domicile of Madhya Pradesh.
Additional money paid on following events :-
At the time of admission in 4th standard - Rs 2000
At the time of admission in 9th standard - Rs 4000
At the time of admission 11th standard - Rs 7500
During higher secondary education - Rs 200 each month
On the completion of 21 years she could receive even Rs 1 lac
Mahatma Gandhi National Rural Employment
Guarantee Act
Started - 25 August 2005
Objective - To provide 100 days employment guarantee per year to unskilled
labourers
Working - Government provides 100 days employment guarantee per year to

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unskilled labourer to do public works for which he is paid Rs 120 per day. In case
Government is unable to provide employment to labourers then it need pay
labourers for 100 days at their home.
Budget aloocated for MNREGA - Rs 45000 crores ( 2012-2013)
Midday Meal Scheme
Started - Started on different dates in various states in India. It was first
introduced in Uttar Pradesh
Objectives - Providing free lunch on working days to primary and upper primary
students of government schools in India. This scheme aims at promoting
education and removal malnutrition in children.
National Pension Scheme India
Started - 1 January 2004
Objectives - Provides social security to Government employees on retirement
Working - 10% of basic salary is deducted from basic salary and DA and
contributed to pension fund. Central government makes equal contribution to the
fund.
Pradhan Mantri Gram Sadak Yojana
Started - 5 December 2000
Objective - To provide roads in villages with population of 1000+
Rashtriya Krishi Vikas Yojana
Started - August 2007
Objective - This scheme aims at achieving 4% annual growth in agriculture
sector.
Working - Rs 5875 crores will be in agricultural sector in 11th five year plan to
improve agricultural productivity.

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Rashtriya Swasthya Bima Yojana
Started - April 1, 2008
Objective - Providing health insurance to poor people living below poverty line
and holding yellow card
Working - Anybody holding yellow card need to register for this scheme and get
a smart card. Family get insurance of Rs 30,000 per family. This is cashless
facility to get treatment in public as well as private hospitals.
Sampoorna Grameen Rozgar Yojana
Started - 25 September 2001
Aim- Started by cobining two ongoing schemes namely Jawahar Gram Smridhi
Yojana and employment Assurance Scheme. This scheme was started to provide
supplementary employment so that labourers in rural areas can earn extra and thus
providing food security to them.
Working - Budget of Rs 10,000 crores has been alloted which is to be provided in
ratio of ratio of 75:25 by Center and State and government.
Sarva Shiksha Abhiyan
Started - 2001
Aim- Provide useful and free education to children in the age group of 6 -14
years under RTE act 2009
Funds allocated - Rs 61,734 crores allocated in 2011-12
Swabhiman
Started - 10 February 2011
Aim- To provide banking facilitates in rural areas with banking services. Goal of
this scheme is to start banking services in 20,000 villages without banking

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services with a population of 2000 by March 2012
Swarnajayanti Gram Swarozgar Yojana
Started - 1 April 1999
Objective - SGSY provide assistance to rural people living below poverty line to
take up self employment.
Swavalamban
Started - 2010 (Will be closed on 2017-2017)
Goal - To encourage workers working in unorganized sector to save for their
retirement
Working - Workers must invest contribute minimum Rs.1000 to maximum
Rs.12000 per year into their NPS account. Government will contribute Rs 1000
per year to NPS account per year.

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Current RBI Policy & Reserve Rates:-
Repo Rate 8% (Unchanged)
Reverse Repo 7% (Unchanged)
CRR 4% (Unchanged)
SLR 23% (Unchanged)
MSF 9% (Unchanged)
Bank Rate 9% (Unchanged)
Repo Rate
Repo rate or repurchase rate is the rate at which banks borrow money from the
central bank (RBI for India) for a short period by selling their securities (financial
assets) to the central bank with an agreement to repurchase it at a future date at
predetermined price. It is similar to borrowing money from a money-lender by
selling him something, and later buying it back at a pre-fixed price.
Bank Rate
People often get confused between Bank Rate and Repo Rate. Though they
appear similar there is a fundamental difference between them.
Unlike Repo Rate, there is no sale of security in Bank Rate. Bank rate is the rate
at which banks borrow money from the central bank without any sale of
securities. It is generally for a longer period of time. This is similar to borrowing
money from someone and paying interest on that amount.
Both these rates are determined by the central bank of the country based on the
demand and supply of money in the economy.

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Reverse Repo Rate
Reverse Repo rate is the rate of interest at which the central bank (RBI) borrows
funds from other banks for a short duration. The banks deposit their short term
excess funds with the central bank and earn interest on it.
Reverse Repo Rate is used by the central bank to absorb liquidity from the
economy. When it feels that there is too much money floating in the market, it
increases the reverse repo rate, which means that banks earn higher rate of interest
when they deposit money with the central bank.
Reverse Report rate was an independent rate till 03/05/2011. However, in the
monetary policy announced on 03/05/2011, RBI decided to link it to Repo rate.
So, Reverse Repo Rate is now always 100 bps below the Repo rate (till RBI
decides to delink the same).
CRR (Cash Reserve Ratio)
Have you ever wondered what happens to the amount that you deposit in bank? It
is used by banks to earn money by investing or lending it to others (house loans,
personal loans etc.). But as per the regulations, banks cannot use the entire
amount deposited with them for this purpose. They are required to maintain a
percentage of their deposits as cash. So, if you deposit Rs. 100/- in your bank,
then bank cant use the entire Rs. 100/- for lending or investment purpose. They
have to maintain a portion of the deposit as cash and can use only the remaining
amount for lending/investment. This minimum percentage, which is determined
by the central bank, is known as Cash Reserve Ratio.
So if CRR is 6% then it means for every Rs. 100/- deposited in the bank, it has to
maintain a minimum of Rs. 6/- as cash. However, banks do not keep this cash
with them, but are required to deposit it with the central bank, so that it can help
them with cash at the time of need.

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SLR (Statutory Liquidity Ratio)
Apart from keeping a portion of deposits with the RBI as cash, banks are also
required to maintain a minimum percentage of deposits with them at the end of
every business day, in the form of gold, cash, government bonds or other
approved securities. This minimum percentage is called Statutory Liquidity Ratio.
Example
If you deposit Rs. 100/- in a bank, and assuming CRR to be 6% and SLR to be
8%, the bank can use 100-6-8= Rs. 86/- for giving loan or for investment purpose.

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Interim Budget 2014-15 Highlights
The government's term ends in May and the measure wasnecessary to cover expe
nditure until a national election iscompleted and a new administration installed.
Chidambaram said India's economy, the 11th largest in theworld, had stabilised an
d was showing signs of turnaround. Hisspeech was marred by protests over the pr
oposed division of asouthern state.
GROWTH
* GDP expansion in third and fourth quarters of 2013/14estimated at 5.2 percent.
Growth for the whole year expected at4.9 percent.
FISCAL DEFICIT
* Fiscal deficit seen at 4.6 percent of GDP in 2013/14, belowtarget of 4.8 percent.
* Fiscal deficit projected at 4.1 percent of GDP in 2014/15
* Says need to bring down the deficit to 3 percent of GDP by 2016/17
CURRENT ACCOUNT DEFICIT
* Current account deficit for 2013/14 estimated at $45 billion from last fiscal year'
s $88billion.
* Forex reserves to rise by $15 billion by end of 2013/14
BORROWING/DEBT SERVICING
* Gross market borrowing for 2014/15 seen at 5.97 trillion rupees, net market borr
owing at4.57 trillion rupees.
* Government plans to buy back/switch bonds of 500 billion rupees in 2014/15.
* Ways and Means advances for 2014/15 estimated at 100 billion rupees
* Debt repayment in 2014/15 seen at 1.397 trillion rupees

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* Interest payments seen rising to 4.27 trillion rupees in 2014/15 from a revised es
timate of3.8 trillion rupees for the current fiscal year.
PRIVATISATION
* Target from stake sale in state run firms for 2013/14 revised to 258.41 billion ru
pees
* Target for 2014/15 increased to 569.25 billion rupees
SPENDING
* Plan expenditure for 2014/15 seen at 5.55 trillion rupees, the same level as the p
reviousfiscal year
* Non plan spending estimated at about 12.08 trillion rupees in 2014/15
SUBSIDIES
* Total spending on food, fertilisers and fuel at 2.5 trillion rupees in 2014/15
* Food subsidy estimated at 1.15 trillion rupees, fertiliser subsidy at 679.71 billio
n rupees.Petroleum subsidy seen at 634.27 billion rupees versus revised figure of
854.8 billion rupeesfor 2013/14.
DEFENCE
* Spending raised to 2.24 trillion rupees in 2014/15, up 10 percent year on year.
EXPORTS
* Merchandise exports seen at $326 billion in 2013/14, up 6.3 percent year on yea
r.
* Agriculture exports expected to touch $45 billion in 2013/14, up from $41 billio
n in2012/13
TAX PROPOSALS
* No major change in tax rates

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* Factory gate tax to be reduced to 10 percent from 12 percent on some capital go
ods,consumer durables
* Cut excise duty on small cars, two wheelers, commercial vehicles to 8 percent fr
om 12percent
* Recommends excise duty reductions on larger vehicles
* Restructure of factory gate tax for mobile handsets
BANKS RESTRUCTURING
* Govt to provide 112 billion rupees capital infusion in state run banks in 2014/15
* Propose to set up public debt management office to start5 work from 2014/15
FINANCE MINISTER COMMENTS
Resurgence in exports, global economic revival and moderation in inflation point
to betteroutlook for Indian economy in 2014/15.
"I can confidently assert that the economy is more stable today than what it was t
wo yearsago. The fiscal deficit is declining, the current account deficit has been c
onstrained, inflationhas moderated, the quarterly growth rate is on the rise, the exc
hange rate is stable, exportshave increased and hundreds of projects have been un
blocked."
India's economy now the 11th largest in the world, he said.

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India ranking in different Indexes :
1. Global Hunger Index (GHI) - Indias score is 23.7, with a rank of 66th out of
88 countries.
2. Global Peace Index Indias ranked 141th.
3. Human Development Report UNDP - India at 134 out of 182 countries.
4. GREENDEX , a world wide ranking based on consumer choice and
environment - India Ranked 1st with a Score of 59.5 among 17 countries.
5. Global Corruption Index - India at 94th .
6. WEF The Global Gender Gap Report - India ranked 114 lisetd very poorly on
the economic,
education and health sub- indexes.
7. WEF Global Information Technology Report - India at 54th.
8. the business executives in the Political and
Economic Risk Consultancy (PERC) survey rated India as having the regions
most inefficient bureaucracy. India scored 9.41 Singapore scored 2.53.
9. Global Competitiveness Index - India at 59th .
10. India ranked at 105 in the Education for All Development Index.

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Bank Slogans
Multinational Bank Slogans
Name of the Bank Punch line
CITI Bank Let's get it done
Standard Chartered Bank Your Right Partner
HSBC Bank The World's Local Bank
Royal Bank of Scotland Make it happen
BNP Paribas The bank for a changing world
JPMorgan Chase Bank The right relationship is everything
Deutsche Bank A passion to perform
Scotia Bank Youre richer than you think
American Express Bank Do more
Barclays Bank Fluent in finance
DBS Bank Living, Breathing Asia
Indian Bank Slogans
Bank Name Bank Slogan
Allahabad Bank A tradition of trust
Andhra Bank Much more to do. With YOU in focus
Bank of Baroda India's International Bank

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Bank of India Relationships beyond Banking
Bank of Maharashtra One Family One Bank
Bank of Rajasthan Together we Prosper
Canara Bank It's easy to change for those who you love, Together we Can
Central Bank of India Build A Better Life Around Us, Central to you since 1911
Corporation Bank Prosperity for all
Dena Bank Trusted Family Bank
Federal Bank Your Perfect Banking Partner
HDFC Bank We Understand Your World
HSBC Worlds Local Bank
ICICI Bank "Hum Hai na..."
IDBI Bank Banking for all; "Aao Sochein Bada"
Indian Bank Taking Banking Technology to Common Man, Your Tech-friendly bank
Indian Overseas Bank Good people to grow with
J & K Bank Serving to Empower
Karur Vysya Bank Smart way to Bank
Lakshmi Vilas Bank The Changing Face of Prosperity
Oriental Bank of Commerce Where every individual is committed
Punjab and Sindh Bank Where series is a way of life
Punjab National Bank The Name you can Bank Upon

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State Bank of India The Nation banks on us; Pure Banking Nothing Else; With you all the way
State Bank of Hyderabad You can always bank on us
State Bank of Mysore Working for a better tomorrow
State Bank of Patiala Blending Modernity with Tradition
State Bank of Travancore A Long Tradition of Trust
South Indian Bank Experience Next Generation Banking
Syndicate Bank Your Faithful And Friendly Financial Partner
The Economic Times Knowledge is Power
UCO Bank Honors Your Trust
Union Bank of India Good people to bank with
United Bank of India The Bank that begins with U
Vijaya Bank A Friend You can Bank Upon
Yes Bank Experience our expertise

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List of PSU Banks and Their Heads
State Bank of India and Its Associates
Bank name Name of the Head
State Bank of India
Smt. Arundhati Bhattacharya
State Bank of Bikaner & Jaipur
State Bank of Hyderabad
State Bank of Mysore
State Bank of Travancore
State Bank of Patiala
Other PSU banks
Bank name Name of the Head
Allahabad Bank Rakesh Sethi
Andhra Bank C. V. R. Rajendran
Bank of Baroda S. S. Mundra
Bank of India V. R. Iyer
Bank of Maharashtra Sushil Muhnot
Bharatiya Mahila Bank Usha Anantha Subramaniyan
Canara Bank R. K. Dubey
Central Bank of India Rajeev Rishi
Corporation Bank Sadhu Ram Bansal
Dena Bank Ashwini Kumar
IDBI Bank Ltd M. S. Raghavan
Indian Bank T. M. Bhasin
Indian Overseas Bank M. Narendra
Oriental Bank of Commerce S. L. Bansal
Punjab & Sindh Bank Jatinder Bir Singh
Punjab National Bank K. R. Kamath
Syndicate Bank Sudhir Kumar Jain
UCO Bank Arun Kaul
Union Bank of India Arun Tiwari
United Bank of India Vacant
Vijaya Bank V. Kannan

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New Appointments in India 2014
Mr. Narendra Modi : Chairman, Planning Commission.
Mrs. Sumitra Mahajan : Speaker, Lok Sabha.
Mohammad Hamid Ansari : Chairman, Rajya Sabha.
Mr. P. J. Kurien : Deputy Chairman, Rajya Sabha.
Mr. Arun Jaitley : Leader of House (Rajya Sabha).
Mr. Ghulam Nabi Azad : Leader of Opposition (Rajya Sabha).
Dr. Montek Singh Ahluwalia : Deputy Chairman, Planning Commission.
Mr. V. S. Sampath : Chief Election Commissioner
Mr. Harishankar Brahma : Election Commissioner.
Syed Nasim Zaidi : Election Commissioner.
Mr. Shashi Kant Sharma : Comptroller and Auditor-General of India.
Mr. Justice K. G. Balakrishnan : Chairperson, National Human Right
Commission (NHRC)
Mr. Ajit Kumar Seth : Cabinet Secretary.
Mr. Nripendra Misra : Principal Secretary to Prime Minister.
Justice V. Eshwaraiah : Chairman, National Commission for Backward Classes.
Ms. Shanta Sinha : Chairperson, National Commission for Protection of Child
Rights (NCPCR)
Dr. P. L. Punia : Chairman, National Commission for Scheduled Castes
Dr.Rameshwar Oraon : Chairman, National Commission for Scheduled Tribes
(NCST).
Prof. D. P. Agrawal : Chairman, Union Public Service Commission (UPSC).
Dr. M. S. Swaminathan : Chairman, National Commission on Farmers (NCF).
Mr. Ajit Kumar Doval : National Security Adviser and Special Adviser to PM
(Internal Security).
Mr. Sharad Kumar : Director-General, National Investigation Agency (NIA)
Mr. Arunendra Kumar : Chairman, Railway Board.
Mr. Shumsher K. Sheriff : Secretary-General, Rajya Sabha
Mr. T. K. Viswanathan : Secretary-General, Lok Sabha.
Mr. Syed Asif Ibrahim : Director, Intelligence Bureau (IB).
Mr. Ranjit Sinha : Director, Central Bureau of Investigation (CBI).
Mr. Alok Joshi : Director, Research and Analysis Wing (RAW).
Mr. Jayanto Narayan Choudhury : Director-General, National Security Guard

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(NSG).
Mr. Dilip Trivedi : Director-General, CRPF.
Mr. Devendra Kumar Pathak : Director-General, Border Security Force (BSF).
Mr. Arvind Ranjan : Director-General, Central Industrial Security Force (CISF).
Mr. P. K. Mehta : Director-General, Railway Protection Force. (RPF)
Mr. Subhas Goswami : Director-General, Indo-Tibetan Border Police (ITBP).
Mr. Arun Chaudhary : Director-General, Sashastra Seema Bal.
Vice-Admiral Anurag G. Thapliyal : Director-General, Indian Coast Guard.
Lt. Gen. Avtar Singh : Director-General, Defence Intelligence Agency.
Prof. Ved Prakash : Chairman, UGC.
Dr. Avinash Chander : Scientific Adviser to Defence Minister and Secretary,
Defence Research and Development Organisation. (DRDO)
Dr. R. Chidambaram : Principal Scientific Adviser to the Government.
Mr. K. Radhakrishnan : Chairman, Space Commission and ISRO.
Mr. Ratan Kumar Sinha : Chairman, Atomic Energy Commission and
Secretary, Dept. of Atomic Energy.
Mr. Naseem Ahmad : Chairperson, National Commission for Minorities.
Mr. Rajiv Mathur : Chief Information Commissioner.
Mr. Amitava Bhattacharya : Chairman, Staff Selection Commission (SSC).
Dr. Vishwa Mohan Katoch : Director-General, Indian Council of Medical
Research.
Mr. C. Chandramouli : Registrar-General of India and Census Commissioner.
Justice D. K. Jain : Chairman, Law Commission.
Dr. Baldev Raj : President, Indian National Academy of Engineering (INAE).
Mr. Justice (Retd.) B. N. Kirpal : Chairman, National Forest Commission.
Mr. T. Nanda Kumar : Chairperson, National Dairy Development Board
(NDDB).
Lt. General AT Parnaik : Director-General, Border Roads Organisation.
Dr. Raghuram Rajan : Governor, RBI.
Justice Mr. Markandey Katju : Chairman, Press Council of India.
Mr. Ravindra Pisharody : Chairman, Audit Bureau of Circulations (ABC).
Mr. R. K. Tewari : Chairman, Central Board of Direct Taxes (CBDT).
Mrs. J.M. Shanti Sundharam : Chairman, Central Board of Excise and
Customs.
Mr. Ashok Chawla : Competition Commission of India
Justice Syed Rafat Alam : Chairman, Central Administrative Tribunal
Mr. G. Sai Prasad : CMD, National Hydroelectric Power Corporation (NHPC).

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Mr. R. S. Sharma : CMD, Oil and Natural Gas Corporation (ONGC).
Mr. B. C. Tripathi : CMD, GAIL.
Mr. S. Behuria : Chairman, IOC.
Mr. Sunil Kumar Srivastava : CMD, Oil India Ltd.
Mr. Vineet Joshi : Chairman, Central Board of Secondary Education (CBSE).
Mr. U. K. Sinha : Chairman, Securities and Exchange Board of India (SEBI).
Dr. Harsh Kumar Bhanwala : Chairman, National Bank for Agriculture and
Rural Development (NABARD).
Smt. Arundhati Bhattacharya : Chairman, SBI.
Mr. M. S. Raghavan : Chairman, IDBI.
Justice Dilip Raosaheb Deshmukh : Chairman, Company Law Board.
Mr. Hardeep Singh Puri : India's Permanent Representative to UN.
Mr. S. K. Roy : Chairman, Life Insurance Corporation of India (LIC)
Mr. Ashwin Pandya : Chairman, Central Water Commission.
Ms. Mamta Sharma : Chairperson, National Commission for Women.
Dr. Y. V. Reddy: Chairman, 14th Finance Commission.
Dr. Pronob Sen : Chairman, National Statistical Commission.
Smt. Leela Samson : Chairperson, Central Board of Film Certification.
Dr. Rakesh Tewari : Director-General, Archaeological Survey of India (ASI).
Mr. Sidharth Birla : President, Federation of Indian Chambers of Commerce
and Industry (FICCI)
Dr. Rahul Khullar : Chairman, Telecom Regulatory Authority of India (TRAI).
Dr. Rajan Katoch : Director, Enforcement Directorate.
Mr. R. V. Verma : Chairman, Pension Fund Regulatory and Development
Authority (PFRDA).
Mr. Pradeep Kumar : Commissioner, Central Vigilance Commissioner (CVC).
Dr. Sekhar Basu : Director, Bhabha Atomic Research Centre.
Mr. N. Ramachandran : President, Indian Olympic Association.
Prof. P. Sinclair : Director, National Council of Educational Research and
Training (NCERT).
Mr. S. Gopalakrishnan : President, Confederation of Indian Industry (CII).
Mr. Sam Pitroda : Chairman, National Knowledge Commission.
Mr. Ratan Tata : Chairman, Investment Commission.
Mr. Shivlal Yadav : Interim President, Board of Control for Cricket in India
(BCCI).
Mr. R. Chandrasekaran : Chairman, NASSCOM.
Mr. Ramesh Sippy : Chairman, National Film Development Corporation

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(NFDC).
Mr. Ravindra Kumar: Chairman, United News of India.
Mr. K. N. Shanth Kumar : Chairman, PTI.
Mr. Ravindra Kumar : President, Indian Newspaper Society (INS).
Mr. Rana Kapoor : President, The Associated Chambers of Commerce and
Industry of India (ASSOCHAM).

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Important Economic Terms:
1. Commercial Paper: Commercial Paper (CP) is an unsecured money market
instrument issued in the form of a promissory note. Corporates, primary dealers
(PDs) and the AllIndia Financial Institutions (FIs) are eligible to issue CP.
Maturity period: between a minimum of 7 days and a maximum of up to one year
from the date of issue. CP can be issued in denominations of Rs.5 lakh or
multiples thereof. Only a scheduled bank can act as an IPA
(Issuing and Paying Agent) for issuance of CP.
2. Treasury Bills: Treasury bills (Tbills) offer shortterm investment
opportunities, generally up to one year. They are thus useful in managing
shortterm liquidity. At present, the Government of India issues three types of
treasury bills through auctions, namely, 91day, 182day and 364day. 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. Treasury bills are also issued under
the Market Stabilization Scheme (MSS).
3. Certificates of Deposit (CD): Certificate of Deposit (CD) is a negotiable
money market instrument and issued in dematerialized form or as a Usance
Promissory Note against funds deposited at a bank or other eligible financial
institution for a specified time period.
Note: CDs can be issued by (i) scheduled commercial banks {excluding Regional
Rural Banks and Local Area Banks}; and (ii) select AllIndia Financial
Institutions (FIs) that have been permitted by RBI Minimum amount of a CD
should be Rs.1 lakh, and in multiples of Rs. 1 lakh thereafter. 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.
4. Fiscal Deficit: A deficit in the government budget of a country and represents
the excess of expenditure over income.
So this is the amount of borrowed funds require by the government to meet its
expenditures completely.

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5. Direct Tax: A direct tax is that which is paid directly by someone to taxing
authority. Income tax and property tax are an examples of direct tax. They are not
shifted to somebody else.
6. 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.
7. NOSTRO Account: A Nostro account is maintained by an Indian Bank in the
foreign countries.
8. VOSTRO Account: A Vostro account is maintained by a foreign bank in India
with their corresponding bank.
9. 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.
10. Cheque: Cheque is a negotiable (which can be transferred to another person
in exchange of money) instrument drawn on a specified banker ordering the
banker to pay a certain sum of money to the drawer of cheque or another person.
Cheque is always payable on demand.
Types of Cheque:
i. Ante Dated Cheque: A cheque bearing a date prior to actual date of signing the
cheque or opening of an account is
called an ante dated cheque which is valid and can be paid till it become stale.
ii. Stale Cheque: If the validity of the cheque has already expired it is called stale
cheque which cannot be paid. The
normal maximum validity of cheque is 3 months earlier it was 6 months.
iii. Post Dated Cheque: The cheque which bears a date subsequent to the date on
which it is drawn. For ex. A cheque drawn on 10th January, 2013 bears the date
of 12th January, 2013.

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11. Crossing of Cheque: Crossings refers to drawing two parallel lines across the
face of the cheque.
A crossed cheque cannot be paid in cash across the counter, and is to be paid
through a bank either by transfer, collection or clearing. A general crossing means
that cheque can be paid through any bank and a special crossing means where the
name of the Bank is indicated on the cheque can be paid only through the named
bank.
Dishonour of Cheque: Non payment of cheque by the paying banker with a
return memo giving reasons for the non payment.
12. Demand Draft: Demand draft is defined as an order to pay money drawn by
one office of a bank upon another office of the same bank for a sum of money
payable to order on demand. Cheque and Demand draft both are used for transfer
of money.
Difference b/w Cheque & DD: A cheque can be bounce but D.D cannot be
bounce as it is already paid.
13. Current account: Current account with a bank can be opened generally for
business purpose. There are no restrictions on withdrawals in this type of account.
No interest is paid in this type of account.
14. 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. You can transfer any amount
through NEFT, even a rupee.
15. 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. Minimum & Maximum Limit of RTGS: 2
lakh and no upper limit.

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16. BOND: Publicly traded ling term debt securities issued by corporations and
governments, whereby the issuer agrees
to pay a fixed amount of interest over a specified period of time and to repay a
fixed amount of principal maturity.
17. Call Money: Call Money is the borrowing or lending of funds for 1day.
18. Notice Money: Money borrowed or lend for period between 2 days and 14
days it is known as Notice Money
19. Term Money: Term Money refers to borrowing/lending of funds for period
exceeding 14 days
20. CRAR(Capital to Risk Weighted Assets Ratio): Capital to risk weighted
assets ratio is arrived at by dividing the
capital of the bank with aggregated risk weighted assets for credit risk, market
risk and operational risk.
21. Non Performing Assets (NPA): An asset, including a leased asset, becomes
non performing when it ceases to
generate income for the bank.
22. INFLATION: inflation is a rise in the general level of prices of goods and
services in an economy over a period of time. When the general price level rises,
each unit of currency buys fewer goods and services. Consequently, inflation
reflects a reduction in the purchasing power per unit of money a loss of real
value in the medium of exchange and unit of account within the economy.
23. DEFLATION: deflation is a decrease in the general price level of goods and
services. Deflation occurs when
the inflation rate falls below 0% (a negative inflation rate). This should not be
confused with disinflation, a slowdown
in the inflation rate (i.e., when inflation declines to lower levels).
24. REFLATION: When government wants to control the deflation condition,
the suggests RBI to decrease the key rates.

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If deflation in not controlled, govt. makes a fiscal policy. (taxes decreased,
subsidy on loan increased).
25. DISFLATION: When government wants to control the inflation condition,
the suggests RBI to increase the key rates.
If inflation in not controlled, govt. makes a fiscal policy. (taxes increased, subsidy
on loan decreased)
26. Doubtful Asset: An asset would be classified as doubtful if it has remained in
the substandard category for a period
of 12 months.
27. CASA Deposit: Deposit in bank in current and Savings account.
28. Liquid Assets: Liquid assets consists of cash, balances with RBI, balances in
current accounts with banks, money at call and short notice, interbank
placements due within 30 days and securities under held for trading and
available for sale categories excluding securities that do not have ready market.
29. Import parity price (IPP): The price that a purchaser pays or can expect to
pay for imported goods such as petrol, diesel or cooking gas. The import parity
price (IPP) is the price at the border of a good that is imported, which includes
international transport costs and tariffs. The IPP is used in International trade and
is sometimes referred to as the International Benchmark Price.
30. Export parity price (IPP): The price that a producer gets or can expect to get
for its product if exported, equal to
the Freight on Board price minus the costs of getting the product from the farm or
factory to the border. The EPP applies only to the quantity that is exported and not
to the quantity that is sold domestically
31. Participatory Notes or Pnotes: are derivative instruments, used by Foreign
Institutional Investors (FIIs) who are NOT registered with SEBI. PNotes, mostly
used by overseas HNIs (High Networth Individuals), hedge funds and other
foreign institutions, allow them to invest in Indian markets through registered
Foreign Institutional Investors (FIIs), while saving on time and costs associated
with direct registrations.

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32. Devaluation: means official lowering of the value of a country's currency
within a fixed exchange rate system, by which the monetary authority formally
sets a new fixed rate with respect to a foreign reference currency.
33. Depreciation: is used to describe a decrease in a currency's value (relative to
other major currency benchmarks) due to market forces, not government or
central bank policy actions.

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Basic Financial Terms A-Z
A
AGM- Annual General Meeting, it is the year meeting held by every registered
company. Agenda is to explain the performance during the year, presentation of
annual financial statements, voting on important financial decisions. Any
shareholder can participate in AGM.
Asset turnover ratio - This ratio can be explained as Net assets / Total turnover
or sales. This ratio measures the operational efficiency of business assets. In
simple terms this measures how many time total assets turned in a year and how
efficiently the assets are used in a business.
Acid test ratio - This is one of the important ratio to measure business liquidity.
Business liquidity is defined as ability of a business to pay it;s short term debts.
Acid test ratio = Highly liquid assets / current liabilities
American Depository Receipts - This is the way non-US companies raises
money from US investors. These shares can be traded in US stock exchanges and
denominated in US $.
Amortization - It is an accounting technique by which intangible assets are
written off over a period of time. For example provision for doubtful debts or
preliminary expenses are written off over a certain period of time.
Annuity - It is an investment scheme under which investor makes recurring
investments and lump sum payment is made to him at the end. Common example
is Recurring deposit account at a post office where people makes small monthly

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deposits and gets their money back at the end of period. Benefit of Annuity is
investor gets compound interest over a period of time.
Asset Management Company - AMC is a company that pools and invests
investor money in pre-determined goals. Pool of funds is known as Mutual fund.
Audit - Financial statement and physical stock is checked annually by
professional auditor ( Chartered Accountant affiliated by ICAI in India )
B
Book-keeping - Recording of financial transactions in books of account.
Bear market - A market situation in which most of the investors thinks that
markets will fall.
Balance of Payment - BOP is the difference between a country's exports and
imports.
C
Capital - Wealth invested by an entrepreneur on his business. Capital = Assets -
Liabilities
Capital gain - Gain by selling a capital asset in which a person is not doing
business. Income by selling a house by a bank employee is a capital gain whereas
when a builder do the same thing it is Income from business and professional.

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Current asset - An asset that can be converted into cash with 12 months. For
example - debtors, stock etc.
Credit rating - A ranking applied to an individual, business or a nation based
upon its credit history and current financial position. There are various credit
rating companies in India such as Crisil.
CPI - Consumer price index is measure to find price of a bundle of commodities.
CPI is used to measure the inflation in a country.
D
Debt consolidation - Debt consolidation is a process by which various loans and
converted into a single loan to reduce interest rate and instalment value.
Depreciation - Depreciation is reduction in value of an asset due wear and tear
over a period of time. For example a company purchased a machine in 2005 and
planned to charge 20% depreciation. In 2010 the machine will be written off from
the books of account.
Dividend - Dividend is the amount per share paid by a company to its
shareholders. Dividend value is based upon company's profitability.
Dividend payout ratio - It is the ratio of dividend paid per share and EPS (
Earning per share )
Double entry bookkeeping - It is a method of bookkeeping in which every
transaction is recorded two accounts. Once in debit side and once in credit side.
E
Earning per share - Earnings made by a company in a financial year divided by
number of issued shares.

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Equity - Value of a business. Equity = Total assets - Total liabilities
Ex-divided - Ex-dividend means without dividend. When a seller makes a ex-
dividend sales contract then he is entitled to get dividend or interest payment.
EBIT - Earning before interest and taxes
EBT - Earning before tax
EAT - Earning after tax
F
Face value - The amount mentioned on face of a bond certificate.
Fixed assets - Assets which can be seen such as machinery
Financial year - A period of 12 months from 1st April to 31st march
Fundamental analysis - Analysis of a company based upon financial and
operational performance.
Fiscal policy - Income and expenses management by Government.
Flat rate - Rate of interest in a contract which remains same irrespective of
market rate in future.
Floating rate - Rate of interest which changes with change in market rate.
Fund manager - A person who manages a mutual fund and tries to maximize
fund's returns while sticking to fund's objectives.
G

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Gearing - It is the ratio of debt to equity
Goodwill - Intangible assets that defines firm's reputation in monetary terms.
Gross profit = Net sales - Net purchases - Direct expenses
GDP - Gross domestic product is the aggregate value of goods and services
produced by every person of a nation.
GST - Goods and services tax is the same tax system for everything. It is
proposed that GST will replace the multi tax system in India by 2015.
H
Hedging - Hedging is a technique used by investors to protect themselves from
adverse price movements. Derivatives are used for hedging in which hedgers
takes the risk of price fluctuations.
Hedge funds - Mutual funds which invests in derivatives
I
Index - It is statistical measure used to find price variations in market. In stock
markets most dominating stocks are grouped to make an index. For example -
Sensex.
Income statement
A statement that represents both income and expenditure of a business during a
specific period of time.
IPO - Initial public offer is issue of stocks for the first time in the market.
Intangible assets Assets which cant be seen but have value for business. For
example Goodwill.

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Indemnity A legal contract under which one party promises to pay another for
any loses incurred to them by their acts.
Interest rate risk Risk that value of financial assets will deteriorate because of
fall in interest rate. For example value of bonds decreases with decrease in interest
rate.
Irredeemable stocks Stocks which cant be exchanged for cash in future.
Indirect Costs - Indirect cost is a cost incurred on product that is not directly
related to its production.
J
Junk fund A fund which invests investors money in junk investments means
high risk investments which high returns.
K
KYC Know Your Customer policy is mandatory in India and every investor
irrespective of his investment volume needs to furnish his identity and residence
details.
L
Libor London
Liquidity Ability of a business to pay off its short term debts with current
assets. Currently NISL is facing liquidity crunch.
Liquid assets Assets which can be readily converted into cash
Liquid ratio Liquid assets/Current liabilities

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Limited liability Liability of an individual or a business up to the value of
investment made in a business
M
Monopoly - A situation in market where there are many buyers but a single seller
exist.
Money market - Market dealing in short term lending and borrowing of funds.
Also know as Cash market.
Monetary policy - Set of actions by Central bank of a country ( RBI in case of
India) to control the supply of money. These actions included increase in interest
rate, open market purchases, changing commercial bank's reserve funds ratio
(SLR) etc.
Marginal cost - Additional cost to produce an extra unit of product.
Margin - Amount of profit added to cost price of each unit of a product
Margin call - Margin call term is used in two situations. First - Whenever a
lender gives a secured loan and loan value is a fixed percentage of loan then
whenever the value of security decrease below the decided ratio then lender given
a margin call to borrower to bring loan to security ratio to decided
level. Secondly in stock exchanges traders trades in various securities by paying
20-30% of the value of securities. Whenever the value of security goes below that
margin, broker gives margin call to trader to bring the margin to desired level.
Mark-to-market - As explained above while defining margin call, value of
assets in case of securities is measured on daily basis. If the trader's asset value
increased, increased value is transferred to his account. In case the value of assets
decreased margin call is made to adjust the margin.

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N
NPV - Net Present Value is aggregate of future cash flows from a project minus
total costs. NPV is a capital budgeting technique used to check feasibility of
projects.
Net profit - Net profit is Gross profit minus indirect cost. See indirect costs
Net worth - Net assets - Total liabilities
Nationalization - When Government takes control of a business, this is known as
nationalization.
NAV - Net Assets Value is mutual fund's per unit exchange traded price
O
Opportunity cost - Additional cost in production of an addition unit of product.
Options - Option is right to buy at pre-determined price at a future date. Option is
used for hedging. Options safeguards option-holder from future price fluctuations.
Overdraft - Facility given by a bank which allows its customers to withdraw
more money than account balance. Overdraft generally have high rate of interest
as borrower can demand and return the loan anytime.
P

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Preference shares - A type of shares having no voting rights and have higher rate
of dividend.
Ponzi schemes - It is a kind of fraud scheme which use Network marketing as a
tool. Investors are paid out of new investments. These schemes end when new
investments stop coming and large number of investors wants to withdraw their
money. Latest Ponzi scheme in India was "Speak Asia".
PLR - Prime lending rate is the minimum rate of interest that is to be charged by
a bank. Each bank decides its own PLR.
R
ROI - Rate on investment is return divided by value of investment
Redemption - Maturity date of a security or a bond
Recession - An economic situation of negative growth
Repo rate - Rate at which Central bank (RBI in case of India) lends money to
commercial banks
Reverse repo rate - Rate at which commercial banks lends to central bank
Right issue - Issue of shares in which existing shareholders gets right to buy
shares in proportion of their existing holding
Risk free return - Rate of return, normally it is 90 days bills issued by a national
government

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S
Stagnation - An economic situation of slow economic growth, high rate
unemployment and inflation.
Shorting - Selling securities which an investors don't have in expectation of price
drop
U
Underwriters - In case of an IPO, new companies makes contracts with
underwriter where underwriters promises to purchase unsubscribe shares.
W
Working capital - Money required by a business to run its day to day business.
Working capital = Current assets / Current liabilities
Warrants - A document which gives right to holder to get shares at stated price
Y
Yield - Yield is the return on investment which may in form dividend or interest

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List of Basic Accounting Terms
A
Accounting - process of recording, analysis and reporting monetary transactions
Accounting Concepts - Basic principles upon which accounting is based
Accounts payable - Amount payable by business entity to various parties from
whom good or services have been purchased.
Account receivable - Amount due to business entity to whom goods or services
have been sol
Accrual basis - An accounting system which explains that expenses and incomes
should be recognized at the time when they are actually realized.
Amortization - It is the splitting off a loan or intangible assets over a future
period
Annual report - Report issued by a company at the end of year containing all
important financial statements and preview of management's goals.
Authorized share capital - Maximum share capital a company is authorized to
issue
B
Bad debts - Noncollectable receivables
Balance sheet - Statement that summarizes assets and liabilities of a business
entity
Bankruptcy - A state in which an individual or legal entity is unable to pay off
his debts so he surrenders his assets to the court.

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Bill of exchange - A promise to certain amount of money to holder at a specified
date
Bill of lading : A document which represents ownership of goods in transit i.e.
goods during shipping from one place to another.
Bills Payable : A bill which shows that a firm has to pay money to the person or
firm whose name is mentioned in the bill.
Bills receivable : A bill which shows that money is to be paid to firm from those
whose names are mentioned in the bill.
Bonus shares : Shares which are issued to the existing shareholder w
Bookkeeping : This process includes analyzing, classifying and recording from
various sets of books in a very systematic way.
Book value : Historical cost less accumulated depreciation. Generally, it is
accounting value.
Brought down : Written as b/d. It represents the opening balance of an account.
Brought forward : Written as b/f. This term is generally used to open an account
for the current year by posting the closing balance of previous year.
C
Capital expenditure : Cost incurred to acquire fixed assets which spreads
benefits in future.
Capital work-in-progress : Cost incurred in those assets which are not ready yet
for use.
Carried down : Written as c/d. This term a synonym for the term carried forward

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and used to balance an account.
Carried forward : Written as c/f. Term used to transfer the balance from one
period to the another.
Carriage inwards : These are the expenses incurred for transporting the goods
purchased by the firm.
Carriage outwards : Expenses incurred for transporting goods sold by the firm.
Cash : It broadly covers currency and generally accepted equivalents of cash, like
cheques, drafts and demand deposits in bank.
Cash at bank : Deposit with bank.
Cash Book : A book of all transactions or entries for cash payments and receipts.
Cash on hand : Cash available and undeposited.
Closing stock/ Closing inventory : Goods remaining at the end of an accounting
period.
Conservatism principle : Accounting concept that states that all expected losses
should be recorded but not expected gains.
D
Depreciation : Decrease in value of assets or the cost of an asset is allocated to
that period during which asset is used.
Discount : A deduction from cost of something , offered by seller.
Dividend: A share of profit which is to be distributed to the shareholders.
Dividend Yield: Ratio of current dividend to the current market price of a share.

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Double-entry: Transaction entered in both sides debit as well as credit i.e. every
transaction has to entered twice.
Doubtful debts : A collection of that debt which is doubtful.
Drawings : Withdrawing cash or goods from business for personal use.
Dual Aspect Principle : Also known as Duality Principle. This fundamental
principle of accounting
states that every transaction has a dual effect and should be recorded at two
places.
Du-Pont System: The System merges the income statement and balance sheet
into two measures of profitability: Return on Assets (ROA) and Return on Equity
(ROE).
EBIT : Earnings before interest and tax.
Entity Principle : The business firm is treated as a separate entity for the purpose
of accounting.
Equity : A stock or any other security representing an ownership interest.
Exchange Rate : The rate at which one currency can be converted into another.
Expenses : the cost i.e. material or services used in an operation during a
specified period.
F
Face Value : Commonly referred to the amount paid to a bondholder at the
maturity date, given that the issuer doesn't default.
Financial Asset : An intangible asset that derives value. Stocks, bonds, bank
deposits etc are all examples of financial asset.

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Financial Ratio : Ratio based on firm's financial statement which reflects firm's
financial condition and performance.
Financial Statement : A formal record of the financial activities of a business,
person or other entity.
Financial data is presented in a structured manner.
Fixed Assets : It includes premises, plant and machinery, furniture, land and
buildings etc.
Fixed Charge : A required payment under a contract.
Freehold Premises : Premises which are not subject to any charge.
Funds Flow Statement : A statement which shows inflow and outflow of funds.
G
Gross Profit Margin : Ratio of Gross profit to net sales i.e. gross profit as a
percentage of net sales.
H
Holding Company : A parent company which holds enough stock in another
company to hold its board of directors.
Human Resource Accounting (HRA) : Measuring the cost and value of
employees and managers in the organisation. It includes the measurement of the
cost incurred to recruit, hire, train and develop employees and managers.
HRA Report : After measuring the cost and value of its people, the organisation
prepares a report which is known as HRA Report.
I

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Imprest : Maintained cash to meet the sundry expenses.
Income Due but not received : Receivable income but not yet received.
Income Received but not due : Income received during current accounting
period which is supposed to be received at some future date.
Income statement : Profit and loss statement that measures the firm's operations.
Insolvency : Inability of debtors to meet their debt obligations i.e. lack of
liquidity.
Intangible assets : Assets like patents, copyrights, goodwill etc which are
valuable but are not physical in nature.
Interest earned ratio : Ratio which measures firm's ability to meet its interest
payments out of its annual earnings i.e. EBIT / Interest expense.
Interest rate risk : Uncertainty in expected returns of securities due to changes in
interest rates.
Inventory : Stock of goods or articles.
J
Journal : A daily record of transactions in which each transaction is based on
double entry bookkeeping i.e. for all transactions both debits and credits are to be
entered.
L
Ledger : A record of all individual accounts of a business or firm.
Liability : A financial obligation which arises due to some past events or
transactions in business.

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M
Marketable securities : Securities which can easily be converted into cash.
Market value : Mutually accepted price of an asset between buyers and sellers. It
is price at which an asset would trade in market.
Matching Principle : States that expenses should be recorded during that period
when it is incurred, regardless the period of transfer of cash.
Miscellaneous expenditure : Lower monetary value costs are misc expenditure
like various meals, ticket prices etc.
Mortgage : A temporary pledge of property to the creditor as a security for an
obligation or the debt repayment.
N
Net block : Net block is what asset are worth to the company. Generally, it is
gross block less accumulated depreciation.
Net current assets : Current assets less current liabilities.
Net income : Total earnings of company. It represents firm's total profit or loss,
calculated by taking all revenues and deducting all the costs of the business.
Net profit margin : Net profit or income as a percent of sales i.e. net Income/
Sales.
O
Operating profit margin : Operating income / Revenue.
Outstanding expenses : Unpaid expenses.
Overdraft : When money is withdrawn from bank account and account balance is

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below zero.
P
Paid up capital : The amount of company's capital which has been funded by
shareholders.
Patent : The sole right to make and sell the product for set period of time.
Petty cash book : Record of entries for small amount payments.
Prepaid expenses : Expenses which have been paid but benefits of which is yet to
be received.
Profit and loss account : A statement which shows all revenues and expenses of
firm for a given time period. Subtracting expenses from revenues gives net
income of the firm for that time period, that's why known as profit and loss
account.
Proposed dividend : Company's board of directors declare an amount of dividend
every year and this amount is noted as a liability in balance sheet. The rate of
proposed dividend can be changed by shareholders in annual general meeting.
Provision for doubtful debts : Keeping aside an amount out of the firm's profit
to meet the losses due to doubtful debts.
Provision for tax : Keeping aside an amount to meet future tax liability.
R
Realization principle : It states that recognize the revenue only when it is earned.
Redeemable Preference Shares : Preference shares which are redeemed by
issuing company at an agreed price on a specified date.
Reserves and surplus : Accumulated profits of the firm.

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Retained earnings : A portion of net income of company which is not distributed
in shareholders and reinvested in core business.
Return on equity : Equity earnings / Net worth.
S
Sales book : A complete record of sales which are made on credit.
Sales Returns Book : A record of entries of those goods which are returned by
customers and earlier sold on credit.
Secured loans : Loan backed by an asset belongs to the borrower, just to reduce
the risk for the lender.
Sinking fund : Fund created by keeping aside some money annually for gradual
repayment of debt.
Sundry expenses : Miscellaneous expenses.
T
Total asset turnover ratio : Net sales/ Total assets.