Banking awareness quick reference guide 2014 gr8 ambitionz

Banking Awareness

Quick Reference Guide for

IBPS PO IV and Clerks IV

Online Exams 2014

www.Gr8AmbitionZ.com your A to Z competitive exam guide

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BANKING AWARENESS QUICK REFERENCE GUIDE FOR IBPS PO AND CLERKS 2014 Gr8AmbitionZ.com

For more materials visit us at www.Gr8AmbitionZ.com 1

Definitions of Important Banking Terms in Simple English

ATM : An Automated Teller Machine (ATM) is a computerized telecommunications device that provides the clients with access to financial transactions in a public space without the need for a cashier, human clerk or bank teller.

Balance of trade: the part of a nation's balance of payments (difference between foreign entities with domestic entities) that deals with merchandise (or visible) imports or exports.

Bancassurance : Selling of insurance products through banks. It also refers as cross selling of insurance products.

Bank Rate : This is the rate at which the central bank (RBI) lends money to other banks or financial institutions. If the bank rate goes up, long-term interest rates also tend to move up. and vice versa.

Bounced Cheque : When the bank has not enough funds in the relevant account or the account holder requests that the cheque is bounced (under exceptional circumstances) then the bank will return the cheque to the account holder.

Camels : It is a supervisory rating system . It refers to Capital adequacy, Assets, Management Capability, Earnings appraisal, Liquidity (also called asset liability management) and Sensitivity (sensitivity to market risk, especially interest rate risk).

Cash Reserve Rate : Specifies the percentage of their total deposits the commercial; bank must keep with central bank or RBI. Higher the CRR lower will be the capacity of bank to create credit.

CGT (Capital gain tax): It is a direct tax that will be levied on sales and purchases of capital assets such as Shares, stakes, even costlier items which won’t have depreciation such as monuments, paintings.

Cheque Book : A small, bound booklet of cheques. A cheque is a piece of paper produced by your bank with your account number, sort-code and cheque number printed on it. The account number distinguishes your account from other accounts, the sort-code is your bank’s special code which distinguishes it from any other bank.

Cheque Clearing : This is the process of getting the money from the cheque-writer’s account into the cheque receiver’s account.

CIBIL : CIBIL refers to Credit Information Bureau India Limited was first established by SBI and HDFC. It deals with both commercial and consumer segments. It maintains the record of the borrowers by its members.

Clearing Bank : This is a bank that can clear funds between banks. For general purposes, this is any institution which we know of as a bank or as a provider of banking services.

Commercial Paper : Commercial Paper is an instrument in the form of a promissory note by the corporate borrowers for their short-term borrowings.

Core Banking Solution : The branches of a bank are connected to a central host, where online multiple delivery channels like ATM, ABB, Debit Card, Mobile Banking etc under one roof.

Credit Card : A credit card is one of the systems of payments named after the Small Plastic card issued to users of the system. It is a card entitling its holder to buy goods and services based on the holder’s promise to pay for these goods and services.

Credit Rating : This is the rating which an individual (or company) gets from the credit industry. This is obtained by the individual’s credit history, the details of which are available from specialist organizations like CRISIL in India.

Credit-Worthiness : This is the judgement of an organization which is assessing whether or not to take a particular individual on as a customer. An individual might be considered credit worthy by one organization but not by another. Much depends on whether an organization is involved with high risk customers or not.

Crop Loans : Bank provide crop loans to the farmers for their seasonal operations (Kharif, Rabi) of agriculture like to purchase seeds, fertilizers.

Cross Selling : Cross selling refers to selling of multiple products to the existing customers such as


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insurance, mutual funds etc ( to the banking customers). Current Accounts : These accounts are maintained by the corporate clients that may be operated any

number of times in a day. There is a maintenance charge for the current accounts for which the holders enjoy facilities of easy handling, overdraft facility etc.

Debit Card : Debit card allows for direct withdrawal of funds from customers’ bank accounts. The spending limit is determined by the available balance in the account.

Deflation: Deflation is the continuous decrease in prices of goods and services. Deflation occurs when the inflation rate becomes negative (below zero) and stays there for a longer period. In Inflation we have two types demand pull (due to increase in demand), and cost push(due to increase in prices)

Demand Deposit : A demand deposit is the one which can be withdrawn at any time, without any notice or penalty; e.g. money deposited in a checking account or savings account in a bank.

DTC (Direct tax code): This is a provision that can replace age old Income tax act 1961.Since this act have loop holes (such as IT dept. Will have no jurisdiction over the fraud happened outside India even Indian company purchased or shares of Indian company sold), so by this code Govt. Will have power to curtail the menace of tax avoidance, and AAR (Authority for advanced ruling is a body by govt. Can act independently over these issues and grant permission for MNC’s that their ‘transfer of shares’,’ absorption/amalgamation’ is legitimate or not.

EMI (Emulated Monthly Instalment) : An equal amount repaid with the principal and interest amount of a loan on every month.

Endorsement : When the maker of the holder of the negotiable instruments sign on the back of the cheque to “Pay certain person”. It means transfer from one person to another person.

Equity: Equity is a one financial instrument by which company invite the public to invest their money in the company and investor can become a partner of the company. Generally, when the company have insufficient money to expand its business it comes with equity shares. Angel investors are the persons who will give financial help to a novice company to develop leaps and bounds.

Excise Tax: Tax imposed on specific goods and services, such as cigarettes and gasoline. Customs duty is levied on inter market boundaries, ‘cess’ is defined as tax on tax.

FCNR Accounts : Foreign Currency Non-Resident Accounts are the ones that are maintained by the NRIs in foreign currencies like USD, DM and GBP etc. The account is a term deposit with interest rates linked to the international rates of interest of the respective currencies.

Financial inclusion: The purpose of this plan is ‘the fruits of development should be distributed among the masses and the deprived classes of the society’, so different actions were taken up, such as BSBDA accounts (Basic savings bank deposit accounts, general purpose accounts to provide for every citizen of country by 01-01-2016 as part of financial literacy, and no frill accounts (no restriction loans will be given) to bail out economically backward sections and alleviate them from poverty.

Fiscal consolidation: It is the process at which the govt. Undertake austerity measures to put restrictions on its economy such as de licensing of industries, disinvestment from stack etc. Our India is following under RBI, a perfect measure by FRBM act (fiscal responsibility and budgetary management act) 2003.

Fiscal policy: Fiscal policy defines the use of government spending and revenue collection to influence the economy.

Fixed Deposits : FDs are the deposits that are repayable on fixed maturity date along with the principal and agreed interest rate for the period. Banks pay higher interest rates on FDs than the savings bank accounts.

Floating Rate of Interest : It refers to the movement i.e., interest rate on a period basis due to outside conditions of the market.

Foreign Direct Investment (FDI): Investment of foreign assets directly into a domestic company's structures, equipment, and organizations. It does not include foreign investment into the stock markets

GAAR (General anti avoidance rules): These are the provisions by which govt. Can restrict tax avoidance (some MNC’s deliberately avoid tax by doing transactions in tax heavens such as Mauritius,


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Luxembourg (Where Sahantha biotech fraud happened), Cayman Islands (where Vodafone fraud happened). Govt. India wants to plan these rules from 2016.

GDP: GDP stands for Gross Domestic Product. It is a method of measuring the size of economy of a country. We can define as the total market value of all the goods and services produced in a given period of time in a country.

GNP: The total value in money of all finished goods and services produced in an economy in one full year, and all net property income from abroad. The GNP growth rate is an important economic indicator for country’s economic development.

Inflation: Inflation is as an increase in the price of bunch of Goods and services that projects the Indian economy. An increase in inflation figures occurs when there is more demand and less supply of the goods.

Interest : The amount paid or charged on money over time. If you borrow money interest will be charged on the loan. If you invest money, interest will be paid (where appropriate to the investment).

Internet Banking : Online banking (or internet banking ) allows customers to conduct financial transactions on a secure website operated by the bank. Banks are using internet as a channel to deliver their service to their customers is referred to internet banking.

Kissan Credit Card : Kissan Credit card is issued by the bank to farmers to meet their cultivation needs and inputs, for a period of three years.

Letter of Credit : The buyer of goods request his bank to give guarantee that the payment for the goods will be paid to the seller. IN such case the bank issues LC.

Loan : A loan is a type of debt. In a loan, the borrower initially receives or borrows an amount of money, called the principal, from the lender, and is obligated to pay back or repay an equal amount of money to the lender at a later time. There are different kinds of loans such as the house loan, auto loan etc.

Mergers in Banking : Mergers refers to combination of two or more banking companies into a single one. Further, it shall continue on a single name.

Mobile Banking : Operating banking services on his / her mobile screens like checking his bank account balances / fund transfers etc.., is referred mobile banking.

Monetary Policy : The RBI issues monetary policy annually to control money supply in the economy and flow of credit by banks to control inflation. CRR, SLR, BANK Rate are the tools of monetary policy (recent monetary policy statement was released on 30th September 2014). Next will be on 2nd December 2014.

Monetary policy: It is the process by which the central bank or monetary authority of a country controls (i) the supply of money, (ii) availability of money, and (iii) cost of money or rate of interest.

Monetized debt: The govt. Can restore the original situation before economic crisis period by offering subsidies and royalties and different incentives to increase the total quality production of the country in stipulated time, US govt. Did it in 2010-11.

Moratorium : When the repayment of a loan starts after certain period of its disbursement, that period is called moratorium.

National Electronic Fund Transfer (NEFT) : Transfer of funds involving inter banking at the national level through national clearing cell of the RBI at free press house. It refers to transfer of amount from one bank account to another bank account.

NO-Frill Account : An account opened with Zero balance and where the transaction amount is limited to certain limit is called No-Frill Accounts. Generally these are opened for Students.

NRE Accounts : Non-Resident External Accounts are the ones in which NRIs remit moneyh in any permitted foreign currency and the remittance is converted to Indian rupees for credit to NRE accounts. The accounts can be in the form of Current, Saving, FDs, recurring deposits. The interest rates and other terms of these accounts are as per the RBI directives.

Overdraft : This is when a person has a minus figure in their account. It can be authorized (agreed to in


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advance or retrospect) or unauthorized (where the bank has not agreed to the overdraft either because the account holder represents too great a risk to lend to in this way or because the account holder has not asked for an overdraft facility).

Participatory note: It is the economic instrument at which the FII’s not enlisted with the prime regulator of a country and use this tool to lift the money by means of forward trading/pricing and crate financial chaos in a particular country and SEBI of our India amended to stop this nonsense.

Payee : The person who receives a payment. This often applies to cheques. If you receive a cheque you are the payee and the person or company who wrote the cheque is the payer.

Payer : The person who makes a payment. This often applies to cheques. If you write a cheque you are the payer and the recipient of the cheque is the payee.

Plastic Money : The payment system in mode of credit and other cards like debit card etc refers to plastic money.

Point of sale (POS) System : It allows payment to be made at point of sales by the way of electronic fund transfer.

Prime Lending Rate : It is the rate at which commercial banks give loan to its prime customers. Quantitative easing: This is the process at which govt. Can ease the money flow in to the system by

buying the toxic assets of banks, this was happened in USA in past recession period by the chairman of the then Fed reserve “Ben Bernanke”.

Recurring Deposits : These are also called cumulative deposits and in recurring deposit accounts, a certain amounts of savings are required to be compulsory deposited at specific intervals for a specified period.

Repo Rate : Under repo transaction the borrower places with the lender certain acceptable securities against funds received and agree to reverse this transaction on a predetermined future date at agreed interest cost. Repo rate is also called repurchase agreement or repurchase option.

Reverse Repo Rate : It is the interest rate earned by the bank for lending money to the RBI in exchange of govt. securities or “lender buys securities with agreement to sell them back at a predetermined time”.

Sales tax ‐ Taxes paid on the goods and services people buy, ‘Tobin tax’ is a tax which will be levied on spot conversion of currencies in between countries, used curtail the ‘drain of market’.

Savings account : Savings account is an account generally maintained by retail customers that deposit money and can withdraw them whenever they need. Funds in these accounts are subjected to low rates of interest.

Security for Loans : Where large loans are required the lending institution often needs to have a guarantee that the loan will be paid back. This takes the form of a large item of capital outlay (typically a house) which is owned or partly owned and the amount owned is atleast equivalent to the loan required.

Single Window System : Single window counters will enable the customers to get services at a single counter.

SLR : It is known as Statutory Liquidity Ratio. Each bank is required statutorily maintain a prescribed minimum proportion of its demand and time liabilities in the form of designated liquid asset. (OR) “Every Bank has to maintain a percentage of its demand and time liabilities by way of cash, gold etc.

Subprime crisis: The banks which have obligation to facilitate money flow may get struck their revenue assets with insolvents and become toxic assets, the process is called subprime crisis.

Tax: A fee charged by a government on a product, income, or activity. If tax is levied directly on personal or corporate income, then it is a direct tax. If tax is levied on the price of a good or service, then it is called an indirect tax.

Time Deposit : Time deposit is a money deposit at a banking institution that cannot be withdrawn for a certain “term” or period of time. When the term is over it can be withdrawn or it can be held for another term.

Transfer pricing: This is one tactic played by some fraudulent MNC’s which will have some suitcase companies in tax heavens and purchase the share value of some reputed companies in a country by its


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intermediary in that country so that pricing of transferred shares will not have exact value. UNCITRAL: United nations commission on International trade Law is an UN body looks after the

peaceful trade among countries without any legal problems and is denoted as the appellate authority for legal violation of continental rules in trade and commerce.

VAT (Value added tax): It is an indirect tax on the consumption of the goods, paid by its original producers upon the change in goods or upon the transfer of the goods to its ultimate consumers. It is based on the value of the goods, added by the transferor. It is the tax in relation to the difference of the value added by the transferor and not just a profit. All over the world, VAT is payable on the goods and services as they form a part of national GDP.

WIPO: World intellectual property organization is a body looks after the issues of protection of Intellectual property rights of a country of owner of patent, Marrakesh treaty for ‘Blind rights’ is associated with this organization.

Recent RBI Committees

Committee on Date Chairman

Capacity Building in Banks and non-Banks

Sep 2014 Shri G Gopalakrishna

Implementation of Counter-cyclical Capital Buffer

July 2014 Shri B. Mahapatra

Data and Information Management in the RBI

July 2014 Shri D.K.Mohanty

To Review Governance of Boards of Banks in India

May 2014 Dr. P.J.Nayak

Working Group on Resolution Regime for Financial Institutions

May 2014 Shri Anand Sinha

Report of the GIRO Advisory Group

April 2014 Prof. Umesh Bellur

Report of the Group on Enabling PKI in Payment System Applications

April 2014 Dr Anil Kumar Sharma

Report of the Working Group on Pricing of Credit

April 2014 Shri Anand Sinha

Report of the Committee on Financial Benchmarks

Feb 2014 Shri P. Vijaya Bhaskar

Report of the Technical Committee on Mobile Banking

Febr 2014 Mr. B Sambamurthy

To Revise and Strengthen the Monetary Policy Framework

Jan 2014 Dr. Urjit Patel

Comprehensive Financial Services for Small Businesses and Low Income Households

Jan2014 Dr. Nachiket Mor

Draft Report of the Committee on Financial Benchmarks

Jan 2014 Shri P. Vijaya Bhaskar

Committee to review the form of presentation of the Balance Sheet and Profit and Loss Account

June 2013 Shri Y. H. Malegam

To Study the Feasibility of Implementation of GIRO Based Payment System in India

May 2013 Shri G. Padmanabhan

Licensing of New Urban Co-Operative Banks

Sept 2011 Shri Y.H. Malegam

Issues and Concerns in the NBFC Sector

Aug 2011 Usha Thorat


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Customer Service in Banks

Aug 2011 M. Damodaran

Benchmark Prime Lending Rate (BPLR)

Oct 2009 Shri Deepak Mohanty

To Review Lead Bank Scheme

Aug 2009 Usha Thorat

To Review the Business Correspondent Model

Aug 2009 Shri P Vijaya Bhaskar Rao

Estimation of Savings and Investment

Mar 2009 Dr. C. Rangarajan

Technology Up gradation of Regional Rural Banks

Aug 2008 Shri G. Srinivasan

Important Committees in News A.Vaidyanathan – Task Force on Revival of Co-operative Credit Institutions

Anil Kaushal Committee – to examine the recommendations made by the TRAI on pricing of Spectrum.

Arvind Mayaram Committee – for giving clear definitions to (FDI) and (FII)

Arvind Mayaram Pane – report on the alleged irregularities at the National Spot Exchange Ltd (NSEL)

B N Srikrishna Committee – Separate state of Telengana Issue

B. Sambamurthy Committee – panel favours single mobile banking app on all SIMs.

Bimal Jalan panel – to scrutinize applications for new bank licenses.

BK Chaturvedi Committee – S Band Scam

C.Ramachandran Committee – Advisory Committee on Ways and Means Advances to State

Governments

Dr. Y.V. Reddy Committee – New Monetary Aggregates

Dr.A.S.Ganguly – Working Group on Flow of Credit to SSI Sector:

Dr.Y.V.Reddy Committee – The Standing Committee on International Financial Standards and Codes

G. Padmanabhan Committee – implementation of Bharat Bill Payment System (BPPS)

Justice A.P. Shah Committee : to head panel on road safety

K U.B. Rao – the idea of setting up Bullion Bank or Bullion Corporation of India

K.K. Mehrotra Committee – to inquire gas leakage in Bhilai Steel Plant.

K.M. Chandrashekhar Committee – Rationalization of investment routes & monitoring of Foreign

Portfolio Investment

Kirit Parikh panel – on fuel pricing (Diesel )

M P Bezbaruah – to suggest suitable remedial measures to address concerns regarding security of

people from North East.

Mukul Mudgal – Committee member panel to probe IPL spot-fixing

N.H.Siddiqui – Working Group for setting up Credit Information Bureau in india


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Nachiket Mor Committee – for small and payments bank

Nachiket Mor Committee – permits NBFCs to work as Business Correspondents of banks.

Parthasarathi Shome Committee – for Tax Administration Reform Commission (TARC)

Raghuram Rajan Committee – Recomendation on development index

self-sufficient in oil and natural gas by 2030.

Shivraj V Patil Committee – Report on 2 G Scam

Suma Verma Committee - to update, and revise the Banking Ombudsman Scheme, 2006

Urjit Patel Committee – Recommended Consumer Price Index (CPI) formula

V K Shunglu Committee – CWG Scam

Vijay Kelkar Committee – appointed by the Petroleum and Natural Gas Ministry to prepare a road map

to make India

Vishnu Sahay Committee – look probe into the Muzaffarnagar communal violence.

Important Committees (Old) A C Shah Committee Non Banking Financial Company

Abid Hussain Committee Development Of Capital Markets

B Sivaraman Committee Instititional Credit For Agricultural & Rural (NABARD)

Bhagwati Committee Unemployment

Bhagwati Committee Public Welfare

C Rao Committee Agricultural Policy

Chatalier Committee Finance To Small Scale Industry

Cook Committee(On Behalf of

BIS-Under Basel Committee )

Capital Adequacy of Banks

Dharia Committee Public distribution system

DR Gadgil committee Agricultural finance

Dutta committee Industrial licensing

Gadgil committee (1969) Lead Banking system

Goiporia committee Customer Service in banks

Hathi committee Soiled banknotes

Hazari committee (1967) Industrial policy

Khanna committee Non performing assets

L K Jha committee Indirect Taxes


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Heads of Public Sector Banks

Bank Head / Chairman / CMD

Allahabad Bank Rakesh Sethi Andhra Bank C.V. R. Rajendran Bank of Baroda Vacant (Vice S. S.

Mundra) Bank of India V. R. Iyer Bank of Maharashtra Sushil Muhnot Canara Bank R. K. Dubey Central Bank of India Rajeev Rishi Corporation Bank Sadhu Ram Bansal Dena Bank Ashwini Kumar Indian Bank T. M. Bhasin

Indian Overseas Bank Vacant (vice M. Narendra)

Oriental Bank of Commerce

S. L. Bansal

Punjab & Sind 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 State Bank and It’s Associates

Arundhati Battacharya

Mahalanobis committee Income distribution

Marathe committee Licensing of new banks

ML dantwala committee Regional Rural banks

Mrs. KS Shere committee Electronic Fund Transfer

M V Nair committee Priority Sector Lending

Narsimaham committee Financial system ( Reduction CRR & SLR)

P Selvam committee Non performing assets of banks

Raja chelliah committee Tax reforms

Rajamannar committee Centre-state fiscal relationships

Rajamannar committee Changes in banking laws, bouncing of cheques etc.

RK Hajare committee Differential Interest Sector

Shome committee GAAR

SS Tarapore committee Capital account convertibility

Tandon committee Industrial sickness

Tandon committee Working Capital Term Loan

Thingalaya committee Restructuring of RRB

Vaghul committee Mutual fund scheme

Wanchoo committee Direct Taxes


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Traditional Banking GK - Important Points to Note

Reserve Bank of India (RBI) was established in 1935 and Nationalized in 1949. Savings Account system in India was started by Presidency Bank, in 1833. Cheque system was first introduced by Bengal Bank which was established in 1784. Allahabad Bank is the oldest existing public sector bank in India. Central Bank of India was the first public bank to introduce credit card. Central Bank of India is the first commercial bank which was managed by Indians. ICICI Bank was the first bank to provide Mobile ATM Bank of Baroda has the maximum number of overseas branches. India’s first “Talking” Automated Teller Machine (ATM) launched by Union Bank of India

(UBI) for visually impaired, was launched in Ahmedabad (Gujarat). The National Payments Corporation of India (NPCI) launches India’s first rural bank ATM card

with a regional rural bank in Varanasi. First bank established in India : Bank of Hindustan in 1770. Second Bank : General Bank of India, 1786 The Imperial Bank of India (IBI) was the oldest and the largest commercial bank of the Indian

subcontinent. It was created in Jan 1921 by amalgamation of three presidency banks, those are, o Bank of Bengal o Bank of Bombay o Bank of Madras

After nationalization in 1955, the Imperial Bank of India was named as State Bank of India (SBI)

State Bank of India merged with three banks namely Bank of Bengal, Bank of Bombay and Bank of Madras in 1921 to form the Imperial Bank of India which was converted as State Bank of India.

First Indian bank got ISO : Canara Bank First Indian Bank started solely with Indian capital investment is PNB (Punjab National Bank). Founder of Punjab National Bank is Lala Lajpat Rai. Reserve Bank of India (RBI) was instituted in 1935. First Governor of RBI : Mrs. Osborne Smith First Indian Governor of RBI : Mr. C. D. Deshmukh First Bank to introduce Savings Account in India : Presidency Bank in 1833 First Bank to introduce Cheque System in India : Bengal Bank in 1833 First Bank to introduce Internet Banking : ICICI Bank

Bank :

Bank is an institution which attracts deposits from the public and lends the money to the needy persons at various interest rates.

Under Banking Regulation Act 1949, controls Banking Activities in India.


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First Bank to introduce Mutual Fund : State Bank of India First Bank to introduce Credit Card in India : Central Bank of India Credit cards are known as Plastic Money Open market operations are carried out by RBI Capital Market Regulator is SEBI Largest Commercial Bank in India – State Bank of India The International Bank for Reconstruction and Development (IBRD) is known as – World Bank India’s First Financial Archive has been set up at – Kolkata CRR, SLR, Repo Rate, Reverse Repo Rate are decided by RBI Savings banks interest rates, fixed deposit interest rates, Loan Rates etc are decided by Individual

Banks. The bank which has launched Mobile Bank Accounts in association with Vodafone’s m-paisa-

HDFC Bank Minimum money transfer limit through RTGs : 2 Lakhs Maximum money transfer limit through RTGs : No Limit Minimum & Maximum money transfer limit through NEFT : No Limit NABARD was established in – July 1982 Largest Public Sector Bank in India – SBI Largest Private Sector Bank in India – ICICI Largest Foreign Bank in India – Standard Chartered Bank Frist Indian Bank to open branch outside India i.e. London in 1946 – Bank of India First RRB named Prathama Grameen Bank was started by Syndicate Bank. First Bank to introduce ATM in India : HSBC in 1987, Mumbai Bank of Baroda has the maximum number of overseas branches. Premium Credit Cards exclusively for women launched recently by HDFC Bank. Private Sector Bank that recently launched a product of Personal Loan called “SWIFT” – HDFC The RBI Central Board consists of One Governor and not more than Four Deputy Governors

(Appointed / Nominated for a period of Four years). o Present(23rd) Governor – Raghuram Rajan o Present Deputy Governors :

Urgit Patel - 14.01.2013 onwards H. R. Khan - 04.07.2011 onwards (Re-elected) R. Gandhi - 03.04.2014 onwards S. S. Mundra - 30.07.2014 onwards

The first headquarter of RBI is Calcutta (1935) Present Headquarter of RBI – Mumbai (1937 to present) RBI has 29 Regional Offices in India The Financial year of the RBI starts on 1st July and ends on 30th June

Printing of Currency Notes and Securities :

Currency paper is imported from Dubai Paper for currency and securities process at Hoshangabad (MP)


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OVI (Optical Variable Ink) is used for printing currency which is imported from Switzerland. Currency denomination is printed in 15 Languages. Currency Notes Press, Nasik Road – Denomination of 1, 2, 5, 10, 50, 100 Bank Notes Press, Dewas (MP) : 20, 50, 100, 500, 1000 Modenized Currency notes Press : at Mysore, Salboni (West Bengal) Minting of Coins : Mumbai, Kolkata, Hyderabad, Noida (UP) Indian Security Press, Nasik Road : Printing of Postal Stamps, Postal Material, Judicial, Non-

Judicial Stamps, Cheques, Bonds, NSCs, Indira Vikas Patra, Kisan Vikas Patra, Securities of States and PSUs.

Security Printing Press Hyderabad (1982) : Printing of Court Fee Stamps, Commemorative Stamps, Kisan Vikas Patra, NSS Certificates

“1 rupee” denomination printed under the control of Government of India. “1 Rupee” note is signed by Finance Secretary, Ministry of Finance and other denominations are

Signed by the Governor, RBI RBI authorized to print Rs. 2 to Rs. 1000 denomination. Parliament photo is printed on Rs. 50 note Dhandi Satyagraha picture is on Rs. 500 denomination. Rs. 10 is the largest circulation denomination. “Rupee” symbol is designed by Uday Kumar, Tamil Nadu. The symbol adopted for the Indian Rupee is Devanagari Script. Plastic Currency issued first by Australia. India is planning to issue plastic currency in Rs. 10 denomination.

Basel Committee :

In 1988, the Basel Committee on banking supervision introduced the Basel-I accord or the risk based capital requirements to deal with the weakness in the leverage ratio as a measure for solvency.

IT was the very first attempt to introduce the concept of minimum standards of capital adequacy. Basel-I : Basel I addressed only one Credit Risk. Basel-II norms : Unfortunately India could not fully implement this but it is now gearing up under

the guidance from the Reserve Bank of India to implement it from 1st April 2009. Basel II : Basle II addresses 3 major pillars / Risks.

1. Credit Risk – 60% 2. Market Risk – 25% 3. Operational Risk – 15%

Minimum capital to be maintained by banks under Basle II is 8% Basel III norms are effective from 1st January 2013 RBI extended the timeline for full implementation of Basel III norms to 31st March 2019 instead of

31st March 2018. Basel III proposes many new capital, leverage and liquidity standards to strengthen the

regulation, supervision and risk management of the banking sector.

RTGS


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The full form of RTGS is “Real Time Gross Settlement”. RTGS system is a funds transfer system where transfer of money or securities takes place from one

bank to another bank a “REAL TIME” and “Gross” basis. An RTGS payment system is one in which payment of Rs. 2 Lakh and above instructions between

banks is processed and settled individual and throughout the day (SBI PO 2014) The settlement is on Gross Basis unlike usual clearing system which is on Net basis. In RTGS, RBI acts as the settlement agent between the banks, settlement risk and systemic risk are

minimized because of RTGS. It is the fastest mode of transaction (SBI PO 2014) Credit is to be available within 2 hours. Timings : 9 AM to 4:30 PM for customers and 9 AM to 6 PM Indian Bank Transactions. For

Saturdays it is 9 AM to 1:30 PM, Customers and in case of Inter Bank 9 AM to 3 PM.

NEFT

The full form of NEFT is “National Electronic Funds Transfer” Transaction Time increased to 9 AM to 7 PM on weekdays and 9 AM to 1 PM on Saturday, with

11 hourly settlement on weekdays and 5 on Saturdays. NEFT enables funds transfer from one bank to another but works a bit differently than RTGS. NEFT uses an Indian Financial System (IFS) code

o an alpha numeric code that identifies the bank branches. It has 11 digits – 1st four represent Bank code, 5th reserved as control code (presently 0) and remaining 6 are branch code.

Settlement period B+ (destination bank to credit within 2 hours or return). For delay repo rate +2% interest payable to customer.

Under this system, individuals, firms and corporate can electronically transfer funds from any bank branch to any individual, firm or corporate having an account with any other bank branch in the country participating in the system.

What are the minimum and maximum amount of remittance under RTGs and NEFT :

RTGS NEFT Minimum Amount Rs. 2 Lakhs No Minimum Limit (SBI PO

2014) Maximum Amount No upper ceiling No upper ceiling

CTS : Cheque Truncation System (CTS) or Image-based Clearing System (ICS), in India , is a project undertaken by the Reserve Bank of India (RBI), for faster clearing of cheques. CTS is basically an online image-based cheque clearing system where cheque images and Magnetic Ink Character Recognition (MICR) data are captured at the collecting bank branch and transmitted electronically. Truncation means, stopping the flow of the physical cheques issued by a drawer to the drawee branch.

IFSC (Indian Financial System Code) : - Indian Financial System Code is an alphanumeric code that uniquely identifies a bank

branch participating in NEFT system. - This is a 11 digit code with the first 4 alpha characters representing the bank, the 5th

character is 0 (zero) and the last 6 characters representing the bank branch.


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- IFSC is used by the NEFT system to identify the originating / destination branks / branches and also to route the messages approximately to the concerned banks / branches.

- For Ex : SBIN0015986 First 4 characters SBIN – refers to State Bank of India 0 is a control number Last six characters (015986) represents the SBI branch Jail Road, Hari Nagar, New

Delhi. MICR : Stands for Magnetic Ink Character Recognition. MICR code is a numeric code which

uniquely identifies a bank branch participating in the ECS Credit Scheme. MICR code consists of 9 digits. E.g. 400229128 (SBI PO 2014)

- First 3 digits represent the city (400) - Next 3 digits represent the bank (229) - Last 3 digits represent the branch (128)

BASIC SAVING BANK DEPOSIT ACCOUNT (BSBDA) : Under the guidelines issued on10th August 2012 by RBI, any individual, including poor or those from weaker section of the society, can open zero balance account in any bank. BSBDA guidelines are applicable to “all scheduled commercial banks in India, including foreign banks having branches in India”.

PAN Card as of May 2010, the Income Tax Department in India has made it mandatory for all Indians to have a PAN card (Permanent Account Number), irrespective of their tax filing status.

CRR : According to sect 42(I) RBI Act 1934, every bank licensed by RBI should keep certain percentage its NKTL (net demand and time liabilities) with RBI in the form of cash is known as CRR.

- No interest will be paid by RBI on CRR to the banks. - The present CRR is 4.0% - Till 22nd June 2006 the min CRR rate was 3% and max was 15%. - Now there is no limit on max & minimum on CRR. - RBI decreases CRR to promote economic growth of the country.

SLR (Statutory Liquidity Ratio) : - Seciton 2(A) of Bankign Regulation Act 1943 says SLR is the percentage of NDTL that

banks need to maintain as reserves in the form of approved securities, gold and cash. - The present SLR is 22 % - The max SLR is 40%.

Repo Rate : - Repo is the rate at which RBI lends to commercial banks as term loans by keeping their

securities with RBI to meet their short term needs (Repo-Repurchase). - The present Repo Rate is 8%

Reverse Repo Rate : - The process of borrowing money from banks by RBI by keeping its securities as collateral

with banks is known as Reverse Repo. - The interest paid by RBI to banks on such borrowing is known as Reverse Repo Rate . - The regular infection & absorption of liquidity through repo and reverse repo process by

using securities as collateral is known as liquidity adjustment facility.


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- The present Reverse Repo Rate is 7.0% Bank Rate

- Is defined in Sec (49) of RBI Act 1934 it is the interest rate charged by RBI on the long term loans given to banks again rediscounting of the bills and other commercial paper.

- Present Bank Rate is 9.0% Marginal Standing Facility (MSF)

- This was introduced by RBI in May 2011. This loan provided by RBI to banks at the rate of 2% of its NDTL Banks should be request for MSF between 3-30 to 4-30 pm electrically under negotiable dealing system (NDS).

- This loan is provided only for 1 day. - If any bank takes this loan for Friday it can repay it on Monday with the same interest. - Interest charged on MSF at present is 9.0% - The min loan provided by RBI under MSF is 1 Crore.

Demand Draft : A demand draft is an instrument used for effecting transfer of money. It is a negotiable instrument.

Cheque : Cheque is a negotiable instrument instructing a bank to pay a specific amount from a specific account held in the maker / depositor name with that Bank.

From 1st April 2012, cheques, drafts, pay orders and banker’s cheques are valid for only three months.

Parties to a Cheque : Basically there are three parties to a cheque viz., (1) Drawer, (2) Drawee and (3) Payee

Drawer : A drawer is the person who has an account in the bank and who draws a cheque for making payment. He is the customer or account holder.

Drawee : A drawee is the person on whom the cheque is drawn. He is liable to pay the amount. In case of a cheque, the drawee happens to be the banker on whom the cheque is drawn, he is also called the paying-Banker.

Payee : A payee is the person to whom the amount stated in the cheque is payable. It may be either drawer himself (self-cheques) or only other third party states in the cheque.

Types of Cheques : Cheques are of the following types Order Cheque : A cheque payable to a particular person or his order is called an order

cheque. Bearer Cheque : A cheque which is payable to a person whosoever bears, is called bearer

cheque. Blank Cheque : A cheque on which the drawer puts his signature and leaves all other

columns blank is called a blank cheque. Stale Cheque : The cheque which is more than six months old is stale cheque. Mutilated Cheque : If a cheque is torn into two or more pieces, it is termed as mutilated

cheque. Post Dated Cheque : If a cheque bears a date later than the date of issue, it is termed as post-

dated cheque. Open Cheque : A cheque which has not been crossed is called an Open Cheque. Even if a

cheque is crossed and subsequently the drawer has cancelled the crossing at the request of the


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payee and affixes his full signature with the words “crossing cancelled pay cash,” it becomes an open cheque.

Crossed Cheque : A cheque which carries two parallel transverse lines across the face of the cheque with or without the words “I and co,” is said to be crossed.

Gift Cheques : Gift cheques are sued for offering presentations on occasions like birthday, weddings and such other situations. It is available in various denominations.

Traveller’s Cheques : It is an instrument issued by a bank for remittance of money from one place to another.

State Bank of India (SBI) : Imperial Bank of India acted as central bank of our country from 1921 to 1935. Imperial Bank of India was nationalized and renamed as “State Bank of India” in 1955.

First Chairman, A. D. Gorwala. SBI has 7 Subsidiaries (SBI Ground). They are : State Bank of Hyderabad, Mysore, Indore,

Patiala, Saurashtra, Travancore, Bikaner & Jaipur. All these were formed in 1959. The total number of associate banks of SBI currently working in the country is – Five SBI is the largest commercial bank of India SBI launched a New Scheme “Parvartan” to attract more customers by rendering better

services. SBI has introduced the Tiny-Card with biometric identification to achieve Financial

Inclusion. Tiny-Card provides easy banking services for under privileged communities. SBI Head Quarters : Mumbai State Bank of India launched “Mobi Cash Eash” a mobile wallet service that allows users to

transfer funds and make bill payment easily using Mobile Phone. On 7th October 2013, Arundhati Bhattacharya is appointed as the first lady chairperson for

SBI. SBI & Associated Banks :

S. No Name of the Bank Head Office Established Year 1 State Bank of India Mumbai 1806 2 State Bank of Hyderabad Hyderabad 1941 3 State Bank of Mysore Bangalore 1913 4 State Bank of Travancore Trivendram 1945 5 State Bank of Patiala Patiyala 6 6 State Bank of Jaipur & Bikaner Jaipur 1963

Note : In 2008 the State Bank of Sourashtra merged with SBI. In 2010 the above State Bank of Indore also merged with SBI.

Slogans of SBI : With you all the way Pure Banking nothing else The banker to every Indian The Nation Banks on us

Indian Origin Banks Nationalization :


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On 19th July 1969 Central Government (Indira Gandhi) nationalized 14 Indian origin banks and on 15th April 1980 again nationalized other 6 Indian origin banks.

Nos. Name of the Bank Head Office

Established Year

1 Allahabad Bank Kolkata 1865 2 Bank of Baroda Baroda 1908 3 Bank of Maharashtra Pune 1935 4 Bank of India Mumbai 1906 5 Central Bank of India Mumbai 1911 6 Canara Bank Bangalore 1906 7 Dena Bank Mumbai 1938 8 Indian Bank Chennai 1907 9 Indian Overseas Bank Chennai 1937 10 Punjab National Bank New Delhi 1895 11 Syndicate Bank Manipal 1925 12 Union Bank of India Mumbai 1919 13 United Commercial Bank (UCO Bank) Kolkata 1943 14 United Bank of India Kolkata 1950 15 Andhra Bank Hyderabad 1923 16 Corporation Bank Mangalore 1906 17 Oriental Bank of Commerce New Delhi 1943 18 Punjab and Sindh Bank New Delhi 1908 19 Vijaya Bank Bangalore 1931 20 IDBI Bank Ltd Mumbai 1964 21 ECGC (The Export Credit Guarantee Corporation of India

Ltd) Mumbai 1957

Note : In 1993, the New Bank of India merged with Punjab National Bank due to the incurring losses.

Bharatiya Mahila Bank was established on 19th November 2013 on the occasion of the 94th birth anniversary of former Indian Prime Minister Indira Gandhi.

RBI Permits 4 Non bank entities to set up white label ATMs : The Reserve Bank has issued “Certificate of Authorization” to four non bank entities :

Tata Communications Payment Solutions Muthoot Finance Prizm Payment Services and Vakrangee Ltd., to set up White Label ATMs (WLAs) in the country.

Note : Most of the ATMs belong to banks, but the cash dispensing machines which are owned and operated by non banking companies are called White Label ATMs.

RBI permits Srei to roll out White Label ATMs : Srei Infrastructure Finance is planning to start roll out its White Lable ATMs (WLAs) between July and September starting with a pilot of 200 Tier III towns in Uttar Pradesh and Bihar.

New bank license period – 18 months (SBI PO 2014) New bank licenses paid up capital – 500 Cr (SBI PO 2014) Asian games after which country withdrawal India ready to conduct ? – Vietnam (SBI PO 2014)


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Stock Market

A Stock market is a public or private market for the trading of company stock and derivatives of company stock on agreed price. These are securities listed on a stock exchange.

BSE (Bombay Stock Exchange)

It was established on 1875, and its head office is in Mumbai. BSE Index is known as SENSEX. SENSEX measure on the basis of 30 top companies. BSE Headquarters : Mumbai, India BSE Managing Director & CEO : Mr. Ashish kumar Chauhan

NSE (National Stock Exchange)

NSE started trading in the equities segment on 3rd November 1994. NSE Headquarters : Mumbai, India Director & CEO : Chitra Ramakrishna

Securities and Exchange Board of India (SEBI) :

It was established in the year 1988 and given statutory powers on 12th April 1992. The headquarters of SEBI is located in the business district of Bandra – Kurla complex in

Mumbai. The Chairman of SEBI – Upendra Kumar Sinha (U K Sinha) The whole time member of SEBI – Prashant Saran The first Chairman of SEBI was – Dr. S. A. Dave

KYC (Know Your Customer)

RBI introduced KYC in Banking sector under 35(A) of Banking Regulation Act 1949. This KYC was introduced in August 2002. To identify the people who wants to transact with any bank and to know about the customer before

opening an account. This process involves verification of customers id proof & address proof. The main objectives of KYC are :

o To prevent money laundering o To prevent money transfer to and from illegal activities. o Money Laundering : Acquiring, Owning, Processing (or) Transferring of money earned

through crime (or) knowingly entering in to any transaction related to crime within (or) outside India (or) it is the process of conversion of illegally obtained money.

New KYC Norms Set :

The Reserve Bank of India on 2nd September set new Know Your Customer (KYC) rules to facilitate opening of bank accounts for foreign students studying in India.

Banks can open Non-Resident Ordinary (NRO) accounts for foreign students on the basis of their passports after verifying their visa and immigration details and on production of the admission letter from an educational institution, RBI said in a circular.


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Indian Banks’ Association (IBA) :

Established on 26th September 1946. IBA’s Chairman : K. R. Kamath (Managing Director of Punjab National Bank) IBA’s Deputy Chairmen : T. M. Bhasin (Indian Bank), Arun Kaul (UCO Bank), Chanda

Kochhar (ICICI Bank).

Institute of Banking Personnel Selection (IBPS) :

The Institute of Banking Personnel Selection (IBPS) is an autonomous agency in India, which started its operation in 1975 as Personnel Selection Services (PSS). In 1984, IBPS became an independent entity at the behest of Reserve Bank of India (RBI) and public sector banks.

The First Chairman of its Governing Board was Dr. Manmohan Singh, the Governor of RBI (at that time).

Present Chairman of IBPS : T. M. Bhasin Director of IBPS : Anup Shankar Bhattacharya

NABARD (Natinal Bank for Agricultural and Rural Development) :

NABARD was established on the recommendations of Shivaraman Committee. NABARD was established by an act of Parliament on 12th July 1982 to implement the National

Bank for Agriculture and Rural Development Act 1981. NABARD replaced the (ACD) and Rural Planning and Credit Cell (RPCC) of Reserve Bank of

India, and Agricultural Refinance and Development Corporation (ARDC). Head Quarters of NABARD is situated in Mumbai. The present Chairman of NABARD is Dr. Harish Kumar Bhanwala. NABARD is the “Micro-Finance Regulatory Authority”. Water Shed Development Fund was instituted with NABARD.

Small Industries Development Bank of India (SIDBI)

The SIDBI Act was passed by the Parliament on October 1989 and the bank commenced its operations from 2nd April 1990.

Headquarters : Lucknow (U.P) Mr. Susheel Muhnot is the Chairman of SIDBI

Industrial Development Bank of India (IDBI) :

The Industrial Development Bank of India (IDBI) was established on 1st July 1964 under an Act of Parliament as a wholly owned subsidiary of the Reserve Bank of India.

On 16th February 1976, the ownership of IDBI was transferred to the Government of India. Headquarters of IDBI is at Mumbai, India. Chairman and Managing Director of IDBI is Ms. Raghavan.

Industrial Credit and Investment Corporation of India (ICICI) :

ICICI was established in 1955.


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ICICI Head qurters : Mumbai, India ICICI Present CEO : Chanda Kochhar.

International Bank for Reconstruction and Development (IBRD) : (World Bank)

Established in : 1945 IBRD Head Office : Washington DC President : Jim Yong Kim

IDFC (Infrastructure Finance Company)

Established : 1997 Head Office : Mumbai Chairman : Rajiv B. Lal

LIC (Life Insurance Corporation of India)

On 1st September 1956 Life Insurance Corporation of India was established with the capital of Rs. 5 Crore given by the Government of India.

Head Office : Mumbai, India LIC Chairman : S. K. Roy 7 Zonal Offices : Mumbai, Delhi, Chennai, Bhopal, Hyderabad, Kanpur, Kolkata

GIC (General Insurance Company)

British Rule introduced GIC. In 1950, Tritan General Insurance Company Ltd was established at Calcutta. GIC Chairman : A. K. Roy Headquarters : Mumbai, India GIC insures Non Life things like Vehicle, Property, Stock etc. GIC premium has to be paid every year and payout is made only if the event for which insurance has

taken happens.

Subsidiaries of GIC Headquarter National Insurance Company Limited Kolkata New India Assurance Company Limited Mumbai Oriental Insurance Company Limited New Delhi United India Insurance Company Limited Chennai

EXIM (Export-Import) Bank of India

Established on : 1st January 1982 Setup under EXIM Bank of India Act 1981 Headquarters : Mumbai EXIM Bank Chairman : Yaduvendra Mathur

Micro Finance :


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Micro Finance represents an economic activity to promote employment and growth through the support of micro-entrepreneurs and small businesses, of the low-income household, by extending various financial services, such as Loans, Savings, Money Transfer, Insurance Services etc.

The Father of Micro Finance : Md. Yunis Khan (Bangladesh) Y. H. Malegam is the chairman of the committee constituted by RBI to study issues and concerns in

the Micro Finance Institutions.

NASSCOM

The National Association of Software and Services Companies (NASSCOM). The Indian Chamber of Commerce is a consortium that serves as an interface to the Indian

Software industry and Indian BPO industry. NASSCOM President R. Chandra Sekhar. It was established in 1988. NASSCOM is a Non-Profit Organization. Headquarters : New Delhi, India with Regional Offices in the cities of Mumbai, Chennai,

Hyderabad, Bangalore, Pune and Kolkata

ASSOCHAM

The Associated Chambers of Commerce and Industry of India (ASSOCHAM) ASSOCHAM President : Rana Kapoor The Association’s Head Office is located in New Delhi, India and Regional Offices are located in

the cities of Ahmedabad, Bangalore and Kolkata.

International Finance Corporation (IFC)

Established Year : 1956 Affiliate of the IBRD Headquarters : Washington D. C., United States The IFCI is a member of the World Bank Group. Major objective is economic development by encouraging growth of productive private enterprise.

International Development Association (IDA) :

Established Year : 1960 Headquarters : Washington D.C., United States Membership – 172 Countries The IDA is a member of the World Bank Group.

International Monetary Fund (IMF)

International Monetary Fund (IMF) was set up by 44 Nations under the Bretton Woods Agreement of July 1944. This institute was established on 27th December 1945. But it is started its function on 1st March 1947.

Headquarters : Washington D.C., United States Members – 188 Nations (Founding), 188 Nations (To Date) 188 Countries, 29 Countries (Founding)


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The Head of IMF is known as Managing Director The Head of IMF – Chirstine Lagarde [Former Finance Minister of France] The financial year of IMF : 1st May – 30th April The head of IMF elected for 5 years (But can be removed earlier). Latest / Last Member of IMF – Tuvalu Quotas and Voting Ranking – India occupies 9th Place in IMF General Quotas where USA in 1st,

Japan in 2nd, Germany in 3rd Place. Special Drawing Rights (SDR) – It was created by IMF in 1970. It is also known as Paper Gold. Cuba is not a member of IMF. Cuba left IMF in 1964.

Asian Development Bank (ADB)

Established in Manila in 22nd August 1966 Headquarters : Manila ADB President : Takehiko Nakao (2013) Functioning from : 1st January 1967

Asian Clearing Union (ACU)

Established year : 9th December 1974 Headquarters : Taheran, Iran ESCAP : Economic and Social Commission for Asia and Pacific Member Economies : 9 (Bangladesh, Bhutan, Iran, India, Maldives, Nepal, Pakistan, Sri Lanka

and Myanmar)

Bank for International Settlement (BIS)

Established Year : 17th May 1930 Location : Basel, Switzerland General Manager : Jaime Caruana Membership : 60 Central Banks It also provides banking services, but only to central banks and other international organizations. It is

based in Basel, Switzerland, with representative offices in Hong Kong and Mexico City.

Some Important Talking ATM Questions :

Which Bank established First Talking ATM in India ? o Union Bank of India (Union Bank)

Which city gets the country’s first Talking ATM ? o Ahmedabad

Which State gets the country’s first Talking ATM ? o Gujarat

Talking ATM Specially designed for ______ people ? o Blind

Who inaugurated the country’s first Talking ATM ?


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o CMD of UBI, D. Sarkar Talking ATM has what kind of Special Interface ?

o Voice Interface Which was the second bank to launch the Talking ATM in India ?

o State Bank of India Which company installed White Lable ATM first in the country ?

o Tata

Foreign Direct Investment (FDI)

o FDI is a direct investment into production or business in a country by an individual or company in another country, either by buying a company in the target country or by expanding operations of an existing business in that country.

o Current Values of FDI Limits in Various Sectors are o Defence – Raised to 49% from 26% o Pension – 49% o Insurance – 49% o Print Media – 26% o Civil Aviation – 49% o Railway Infrastructure – 100% o Public Sector Banks – 20% o Private Sector Banks – 74% o Multi Brad – 51% o Single Brand – 100% o Tourism – 100%

Indian TAX System

Indian Government Taxes : o Direct Taxes : Income Tax, Capital Gain Tax, Corporate Tax, Gift Tax, Wealth Tax o Indirect Taxes : Central Excise Duty, Service Tax, Customs Duty, Stamp Duty, Land Tax,

Luxury Tax, Advertisement Tax, Sales Tax (VAT) Income Tax – Income Tax Levied on Personal Income Men and Women (below 60 years of Age) :

o Upto Rs. 2,50,000 – Nill o Rs. 2,50,001 – Rs. 5,00,000 – 10% o Rs. 5,00,000 – Rs. 10,00,000 – 20% o Rs. 10,00,000 and above – 30%

Senior Citizens (Men, Women above 60 years of age but below 80 years) o Upto Rs. 3,00,000 – Nill o Rs. 3,00,001 – Rs. 5,00,000 – 10% o Rs. 5,00,001 – Rs. 10,00,000 – 20% o Rs. 10,00,000 and above – 30%

Very Senior Citizens (Mens & Womens above 80 years of age) o Upto Rs. 5,00,000 – Nill


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o Rs. 5,00,001 – Rs. 10,00,000 – 20% o Rs. 10,00,001 and above – 30%

Capital Gain Tax : It is a part of income tax levied on income of the shares, house property etc. Corporate Tax : Largest yield to Union Government comes from corporate tax since 2006-07.

Corporate tax is levied on registered companies and corporations @ 30%. o MAT Tax : Minimum Alternative Tax o Zero Tax : companies have to 20% of their profits started in 1996-97.

Wealth Tax : Only on unproductive assets such as guest houses, jewellery, residential bungalows. Started on 01-04-1957. It is recommended by Kaldor.

Gift Tax : Persons receive gifts in cash (or) kind, will have to pay tax with value exceeds Rs. 50,000/- comes into force from 01-01-2009. Does not apply to gifts received either from relatives or in marriage.

Indirect Taxes : o Sales Tax : Largest yield to state government comes from states tax (VAT). VAT tax

recommended by L K Jha in 1976 and implemented from 2003-04. o Service Tax : 1994-95, Raja Chellaiah Committee recommended. o Luxury Tax : Levied on who stayed customers in star hotels etc. o Central Excise Duty : Levied on domestic production of goods o Stamp Duty : It is levied on sale of the assets and properties o Land Tax : Levied on agricultural lands o Customs Duty : Levied on Exports and Imports. About 99% of customs comes from import

duties. o Advertisement Tax : Levied on Media and Other advertisements.

Banking Awareness

Latest updates in Banking and Financial Sectors Highlihgts of Jan Dhan Yojana Scheme 2014

o Prime Minister Narendra Modi on 28th August 2014 launched his pet project the ‘Jan Dhan Yojana’ ("People’s Wealth scheme" in English), which aims to provide bank accounts to the poor and end financial untouchability.

o The scheme is aimed at opening 1 crore bank accounts on the first day of its launch. o The logo of the mission was created by Priya Sharma. o The name “Jan Dhan” was chosen through an online competition on the MyGov Platform

and received more than 6000 suggestion from Indian citizens. After evaluation the jury shortlisted “Jan Dhan” which was suggested by 7 individuals.

o Slogan of this scheme is "Mera Khata – Bhagya Vidhaata” (My Bank Account – The Creator of the Good Fortune)

o The primary objective of the programme, is to deepen financial inclusion. As many as 60000 bank camps will be conducted and about 1 crore accounts are targeted to be opened in just one day.


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o The long term vision of the Jan Dhan Yojana is to lay the foundation of a cashless economy and is complementary to the Digital India Scheme.

o This scheme has set an ambitious target of bringing in more than 7.5 crore un-banked families into India’s banking system by opening more than 15 Crore bank accounts at the rate of two bank accounts per household.

o Every individual who opens a bank account becomes eligible to receive an accident insurance cover of up-to Rs 1 Lakh for his entire family.

o Once the bank account has been active for 6 months and has been linked to account holders Aadhar identity , they would become eligible for an overdraft of up to Rs 2,500 , which would further be enhanced by the bank to Rs 5000 over time.

o The mission will be implemented in two phases. . Phase-I from 15th August 2014 to 14th August 2015. Phase-II from 15th August 2015.

o Banks have opened around 5 crore accounts under the Jan Dhan Yojana scheme and collected over 3,500 crore rupees in deposits.All these accounts will be seeded to the Aadhar number and will have biometrics to avoid the duplication.

4th Bi-Monthly Monetary Policy Review Highlights o The Reserve Bank of India (RBI), in its fourth bi-monthly credit policy review (29th

September 2014) has kept repo, reverse repo, cash reserve ratio (CRR) and bank rate unchanged. The fifth bi-monthly monetary policy statement is scheduled on Tuesday, 2nd December 2014.

o Current Rates of RBI Repo Rate..............................8% Reverse Repo Rate................7% CRR.......................................4% Bank Rate...............................9% SLR........................................22%

o RBI retains growth projection for current fiscal at 5.5%. o Can reach inflation target of 6% by January 2016 said RBI.

India GDP Forecast : o RBI pegged 2014-15 GDP growth at a central estimate of 5.5%. o World Bank lowers India’s GDP growth forecast for 2014-15 at 5.5% from the earliest

forecast of 5.7 per cent. o ADB pegs India GDP growth rate for 2014-15at 5.5%. o IMF projected GDP growth for India in 2014-15 at 5.4%

Union Government granted Navaratna Status to EIL (Engineers India limited) and NBCC (National Building Construction Corporation)

Union MSME Ministry Launched online Finance Facilitation Centre for SMES. SEBI issued new norms for public issuance of debt securities. The SEBI has imposed a penalty of 13 crore rupees on Reliance industries limited for alleged

irregularities in issuance of warrants by the company to its promoters. Plastic Currency notes to be launched in 2015. RBI allowed the minors of age above 10 years to open Savings bank account.


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RBI issued notice to banks concerning discontinuation of Windows XP. RBI increased diamond imports credit time to 180 days. RBI cancelled the license of The Vasavi Co-operative Urbank Ltd, Hyderabad. Rangarajan sets poverty line at Rs. 32 per day in rural and Rs. 47 in urban areas. SBI NTOUCH : SBI Launches six digital touch banking branches. DA Tambe takes over as GM (Network-I) of Kolkata Circle of SBI. Canara Bank opened branch in New York. Bharatiya Mahila Bank included in Second Schedule of RBI Act, 1934. President dedicates indigenous card payment network “RuPay” to the nation. Rupay Card Developed by : National Payment Corporation of India (NPCL) (SBI PO 2014) Raghuram Rajan signed Rs. 1000 bank notes to come up shortly. RBI extends deadline to implement Basel-III norms to 2019. RBI reviews norms on restructuring of advances by NBFCs. Sun Pharma buys Ranbaxy. Govt accepts Sahoo Panel report on review of depository receipts scheme. The key

recommendations of the committee include allowing issuance of depository receipts against any underlying secutrities – equity or debt, by any issuer listed or unlisted.

o Depository receipts are receipts denominated in foreign currency created by a depository in the country of listing. There are two popular types of depository receipts, Global depository receipts and American depository receipts.

Ratings agency Standard & Poor's raised India's credit outlook to “stable” on 26th September, saying the prospects for reforms and fiscal management had grown under the NDA government in a vote of confidence ahead of Prime Minister Narendra Modi’s maiden visit to the US.

State Bank of India will provide loans worth six billion rands (USD 557.75 million) to South African businesses over the next two years as part of the bank's plans to expand its operations.

Asian Development Bank (ADB) sold its entire 5.2 per cent stake in Indian gas supplier Petronet LNG Ltd for Rs 714 crore ($116.8 million) via block deals.

The government is going to borrow Rs 2.4 lakh crore through bonds in the second half of the current fiscal taking the total borrowing to Rs 5.92 lakh crore.

PM Narendra Modi has launched the ambitious 'Make in India' campaign on 25th September, It is aimed at making India a manufacturing hub by attracting foreign companies to set up their manufacturing units.

RBI relaxed Know Your Customer norms by allowing self-certification of documents for opening bank accounts.

o It has asked banks to allow self-certified copy of the document by mail, or post for opening an account.

o Banks have also been asked not to seek fresh documents, if a KYC compliant customer desires to open another account in the bank.

The Finance Ministry on 6th October has asked public sector banks to tighten norms, including KYC monitoring for high-value fixed deposits, to check the kind of frauds suspected to have been


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committed at Dena Bank and OBC. Banks have been advised to categorise fixed deposits, which may fall under high value criteria.

KC Chakrabarty, Deputy Governor, Reserve Bank of India has quit three months ahead of completion of his term on 20th March 2014. He was replaced by R. Gandhi on 3rd April 2014.

Inflation data based on wholesale price index (WPI) for August hit a five year low at 3.74 percent declining vegetable prices and other food articles. August WPI inflation stood at 5.19 percent in July.

India has decided not to impose anti-dumping duty on imports of solar panels from countries like the US and China.

Total telephone subscriber base in India rose marginally in July to reach 94.64 crore, with 34.5 lakh users added during the month, sectoral regulator Telecom Regulatory Authority of India (Trai) said.

Kicking off the mega disinvestment drive, government approved the sale of shares in Coal India , ONGC and NHPC to garner a combined Rs 43,000 crore.

Government approves an over Rs 5,300 crore project to boost telecom infrastructure and connectivity in North East India.

The Reserve Bank of India (RBI) allowed banks to take action against guarantors on a loan, even without exhausting the remedies against the principal debtor, in case of a wilful default.

Travel industry body International Air Transport Association (IATA) said that India's domestic market increased by 7.4 percent in August over the previous year.

Core sector growth for the month of August picked up with eight core sector industries growing by 5.8 percent against 4.7 percent in same month last year. The July core sector data was 2.7 percent.

Cochin International Airport Limited (CIAL), the country’s first green-field airport in the public-private partnership mode, has handed over a cheque of Rs.17.76 crore to the Kerala government as its share of profits for the last fiscal.

World's largest asset manager Blackrock will host a global investors meet in India next year. Top Indian lender State Bank of India on 24th September, announced that its board had approved

stock split of one share into 10 shares. SBI will reduce the face value of each equity share to 1 rupee from 10 rupees now. Punjab National Bank and ICICI Bank approved stock splits in September.

SBI Launches 3 Digital banking facilities for its customers. o Tab Banking for Savings A/C : Opening Savings A/C at Customer’s door step using tablet

PC provided to the Bank’s Sales Staff (who visit the Customer’s Home). o TAB Banking for Home Loan : In principle approval for the home loan at customer’s door

step using tablet PC provided to the Bank’s Home Loan Sales Team which will capture on the tablet KYC details.

o eKYC : Generates eKYC (Know Your Customer) identity document. The Union Cabinet gave its approval for the release of a 7 per cent additional installment of

Dearness Allowance (DA) to Central Government employees. It also approved Dearness Relief (DR) for pensioners. Both DA and DR will become effective from July 1, 2014.

The government has asked 12 state -run PSUs like SAIL, NTPC and DVC to immediately furnish all details of any joint ventures formed by them related to 20 coal blocks allocated for captive use for submission to the Supreme Court, which is looking into the issue.


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Unveiling a slew of amendments in the implementation of the Basel 3 regulations, the Reserve Bank of India has allowed banks to issue additional Tier 1 capital instruments, the principal amount of which would absorb losses, either through conversion into common shares or a write-down mechanism that allocates the losses to the instruments, either temporarily or permanently.

In a major overhaul of its functioning, capital markets watchdog SEBI has fixed one-year target for completion of all its investigations, while sharply focusing on cases involving bigger offences. There are 221 investigations pending with Sebi right now.

In an apparent sign of revival, the Indian economy expanded by 5.7 per cent during the first quarter of the current financial year to log the highest growth yet in nine quarters.

The Bombay Stock Exchange (BSE) launched and Institutional Trading Platform (ITP) to help Small and Medium Enterprises (SMEs) and start up companies to list on the bourses without an Initial Public Offer (IPO).

Bank of India (BOI) has become the first Indian Bank to extend a bridge loan of $200 million to Air India to finance the purchase of two Boeing 787 Dreamliner Aircraft.

India leads global remittances with USD 70 bn in 2013. India’s neighbour China follows second with USD 60 billion, said the World Bank Report.

World Trade Organization (WTO) projected that the world trade will grow by 4.7 percent in 2014.

The World Bank will give 12 billion dollars loan to Pakistan over the next five years to help lift its economy.

Qatar based Doha Bank announced its first branch in Mumbai. The branch in Mumbai was opened as a full fledged bank in May 2014.

o Note : Bank of Bahrain & Kuwait, Abu Dhabi Bank are the two other banks from Arab countries to have operations in India before Doha Bank.

Bank of India (BOI) launched Instant Money Transfer (IMT) scheme in Mumbai. o Note : IMT Scheme allows customers to withdraw cash without using either debit card or

credit card at BOI’s IMT enabled ATMs. This is the first of its kind initiative launched by a public sector bank.

Kotak Mahindra launches accounts integrated with Facebook, Twitter. ICICI Prudential Mutual Fund has bagged Morningstar India’s best fund house award in the debt,

equity and multi asset category. An Asian Development Bank (ADB) report of 1st April 2014 stated that India’s GDP is poised to

accelerate to 5.5 per cent in 2014-15 on the back of improved performance in industry and services but it may take some time for the country to reach its potential growth rate.

Inflation based on Wholesale Price Index (WPI) reached a 3 month high of 5.7% in March 2014. Wholesale Inflation falls to 9 month low of 4.68 percent in February Kotak Mahindra Bank announced the launch of Jifi, a first of its kind fully integrated social bank

account that transcends normal digital banking by seamlessly incorporating social networking platforms like Twitter and Facebook with mainstream banking.

Export-Import Bank of India extended a Line of Credit of $89.90 million to the Government of Republic Congo, for development of transportation system in the Republic of Congo.


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Central Bank of India has sold its entire stake in credit information provider CIBIL to Transunion International Inc. Central Bank had a 5 Percent stake in CIBIL while Transunion is the majority shareholder in CIBIL at 27.5 percent.

Canara Bank names cricketer Shikhar Dhawan as its brand ambassador. Housing Development Finance Corporation (HDFC) Bank set World record for Blood

collection in a single day. The donation camp organized by HDFC Bank on 6th December 2103 was recorded in the Guinnes Book of Records.

The World Bank has said it would provide upto $ 3 billion in aid for Ukraine in 2014 to help the country deliver much needed economic reforms.

Max Life Insurance has tied up with Toyota Financial Services India Ltd to provide insurance cover to car loan customers.

Bihar emerges as fastest growing state (15.05 percent) in 2012-13 : CSO report. o Note : According to the CSO data, Gujarat ranked 6th with growth rate at 7.96 percent,

behind Bihar and Madhya Pradesh with 9.89 percent, Goa 8.47 percent, Kerala 8.24 percent and Odisha 8.09 percent. The all India growth rate in 2012-13 was 4.47 percent.

Indian Bank has bagged national award for excellence in lending micro enterprises for consecutive second year.

A RBI committee on Financial Inclusion headed by Nachiket Mor suggested setting up a new set of banks called “Payment Banks” to widen the spread of payment services and deposit products to small business and low-income households in Asia.

After launching accounts on Facebook and Youtube, the country’s largest bank SBI launched a twitter account on 4th April 2014 at https://twitter.com/TheOfficialSBI.

As per a report by World Bank, India stood at 1st place in world in terms of receiving money from non-residents.

As per World Bank Projections, Indian Economy is expected to grow at 5.7% during FY 2014-15.

Asian Development Bank (ADB) has provided $400 million first tranche line of credit to India Infrastructure Finance Company Ltd (IIFCL) to help accelerate infrastructure growth through increased private sector investment.

Asian Development Bank (Headquarters – Manila (Philippines) has predicted 5.5% GDP growth rate for India in FY 2014-15.

RBI sets the maximum age for Managing Directors and Chief Executive Officers in private sector banks at 70.

Asian Development Bank will provide USD 275 million loan for improving rural road connectivity in five states including Assam, Chattisgarh Madhya Pradesh, Odisha and West Bengal in the country.

Axis Bank, India’s third largest private sector bank has launched “Asha Home Loan”, a 30 year home loan product for first time home buyers in the lower income segment based on the family income.

Bank of India became first Indian Bank to start ITM (Instant Money Transfer) Service that enables to withdraw money from the ATM without having a Bank Account.

Bharatiya Mahila Bak (BMB), the first all women bank, tied with New India Assurance to launch health insurance products for women account holders of the bank.


https://twitter.com/TheOfficialSBI.

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Bharatiya Mahila Bank (BMB) and SBI Cards have joined hands for roll out of credit cards to customers on India’s first women focussed commercial bank.

Bimal Jalan Committee on new Bank License has submitted its report to the Reserve Bank of India.

Chattisgarh has been ranked on Top in RBI’s Report “State Finances – A Study of Budget of 2013-14” based on various Fiscal Parameters.

Children older than 10 years can now operate savings bank account on their own and no longer need the help of their parents or guardians to open and operate it. To boost financial inclusion, the Reserve Bank of India (RBI0 said that banks were at liberty to allow minors above 10 years to independently open and operate savings bank accounts. (SBI PO 2014)

Corporation Bank has bagged the awards for lending to MSE (Micro and Small Enterprise) and to Micro enterprises from the Union Ministry of Micro, Small and Medium Enterprises (MSME)

Country’s largest bank SBI has launched a financing scheme for women fashion boutique owners. Labelled “Boutique Financing”, the scheme is designed to offer working capital expenses as well as term loan for boutique owners.

Domestic banks will need US $200 billion additional capital over the next five years to meet Basel III norms for capital adequacy and the demand for funds as growth picks up, Fitch has recently announce.

Economic growth in India projected at 5.35% in 2014, says UN report. EPFO (Employee’s Provident Fund Organization) which is the Regulator of Retirement Fund of

Government Employees in India, decided to increase rate of interest on Provident Fund deposits to 8.75% from 8.5% earlier.

Ex-Chairman of Axis Bank, P. J. Nayak is the head of the expert panel to review bank boards’ governance. The panel will review the RBI's regulatory guidelines on ownership of banks and representation in their boards, among other things.

Exim Bank has extended USD 46 million line of credit to Mauritius for financing goods and defence related vehicles purchases.

Foreign investment of 10 per cent or more in a listed company will now be treated as FDI as the government has accepted the report of a committee on rationalising definitions of FDI and FII.

Global rating agency Moody on 22 September 2014 released a report titled Indian Banks Could Need 26-37 billion US dollar in External Capital for Basel III Compliance. In the report it revealed that 11 Indian public sector banks (PSBs) need to raise 26 to 37 billion US dollar in external capital in the financial year 2015 in order to meet the Basel-III capital adequacy norms by financial year 2019.

Government approved increasing Foreign Equity in Axis Bank from 49% to 62%. Govt launches inflation indexed saving bonds which offer protection to retail investors from price

rise. The minimum limit for investment is Rs. 5,000 and the maximum is Rs. 5 lakh per applicant per annum. Interest rate would be linked to Customer Price Index (CPI).

HDFC Bank with a brand value of $ 9.4bn is India’s most valuable brand according to the first edition of the BrandZ Top 50 Most Valuable Indian Brands ranking that was announced on 19th August 2014.

ICICI Bank offers ‘Cardless Cash Withdrawal’ at ATMs. ICICI Bank, the country’s largest private sector lender, has introduced an equated monthly

instalment (EMI) option for its customers on debit card purchases.


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IIFCL (Indian Infrastructure Finance Company Ltd) signed an agreement with EXIM Bank of Korea for Infrastructure Finance.

IMF projected 5.4 percent economic growth for India in 2014-15. India has replaced Japan as the 3rd Largest economy in 2011, according to the data released by

the International Comparison Program of the World Bank. The US has retained the top spot followed by China.

India’s first post office savings bank ATM inaugurated in Thyagaraya Nagar, Chennai. Indian Overseas Bank launched “Connect Card”, a new ATM cum Debit Card in association

with VISA that can be used for e-commerce across five lakh merchant outlets. Japan-based Mt Gox, which was the World’s Largest bitcoin exchange filed for bankruptcy. LIC has re-launched its “Jeevan Anand” plan, a participating non linked plan which offers an

attractive combination of protection and savings. Milk and Dairy products major Mother Dairy Fruit & Vegetable Pvt. Ltd. announced its strategic

tie-up with State Bank of India (SBI) to launch SBI - Mother Dairy SmartChange Card for Mother Dairy Milk Booths in Delhi & NCR. This first-of-a-kind initiative in the dairy industry will facilitate consumers towards a more convenient mode of payment at Mother Dairy milk booths.

Ms. Lakshmi Swaminathan has become the 1st Indian to be elected as the President of the Administrative Tribunal of the Asian Development Bank (ADB).

Muthoot Finance, Prizm Payment Services and Vakrangee Ltd. , to set up White Label ATMs (WLAs) in the country.

National Bank for Agriculture and Rural Development (NABARD) has reduced refinance rate for banks and other lending agencies by 0.20 percent to promote rural credit and rural infrastructure.

Oriental Bank of Commerce became first bank which introduced the e-KYC (electronic Know Your Customer) facility.

Private sector lender IndusInd Bank has launched a new customer-centric service titled Video Branch. This offering enables the customers to do a video conference with the bank staff. They can schedule a video call with the Branch Managers/Relationship Mangers or connect to the central Video Branch instantly.

Public Sector General Insurer New India Assurance announced a Health Insurance cover New India Asha Kiran for Girl Child. Health insurance rate are cut by 50 percent for the girl child under this scheme along with a personal accident cover for parents.

Qatar-based Doha Bank is going to acquire the Indian assets of HSBC Bank Oman SOAG. The board of Doha Bank has authorised the purchase of the Indian assets of HSBC Bank Oman SOAG, and has called a shareholders' meeting in November to approve the deal.

Raghuram Rajan, the Governor of the Reserve Bank of India (RBI) announced that plastic currency notes will be launched in 2015 after field trials.

RBI extended the timeline for full implementation of Basel III norms 31 March 2019 instead of 31 March 2018.

RBI has cut the number of free transactions that savings bank customers can avail from other bank's Automated Teller Machines (ATMs) from the present five to three a month. It has also allowed banks to charge customers if they use their own bank ATM more than five times a month. New charges will apply for transactions done at ATMs located in six metro centres, namely, Mumbai, New Delhi, Chennai, Kolkata, Bengaluru and Hyderabad.

RBI has decided that Indian companies will not be permitted to raise External Commercial Borrowings from overseas branches or subsidiaries of Indian banks for refinance or repayment of the Rupee loans raised from domestic banking system.


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RBI has granted an additional nine months for the public to exchange currency notes printed before 2005, including Rs 500 and Rs 1,000 denominations, and set a deadline of January 1, 2015.

RBI panel (headed by banker Nachiket Mor) has suggested setting up of specialised banks to cater to low income households to ensure that all citizens have bank accounts by 2016.

RBI panel headed by ex‐Chairman of Axis Bank, P. J. Nayak recommend for diluting govt stake in public sector banks to below 50 %. The government should cut its holding in public sector banks to under 50 per cent, a Reserve Bank of India (RBI) panel report on Tuesday said, criticising the way in which the lenders are now being governed.

RBI panel headed by RBI Deputy Governor Anand Sinha has recommended bringing a benchmark floating interest rate, especially for home loans. Panel also suggested Indian Banks Base Rate (IBBR).

RBI pegged 2014‐15 GDP growth at a central estimate of 5.5 percent, economic growth for 2014‐15 expected at 5.5 pc., CAD expected to come down to 2 pc of GDP in 2014‐15.Retail inflation to be 6pc.

RBI on 7th February 2014 permitted 4 non‐bank entities to set up white label ATMs: o Tata Communications Payment Solutions Ltd o Prizm Payment Services Pvt. Ltd o Muthoot Finance Ltd o Vakrangee Ltd

On 27th March 2014 RBI permits Srei to roll out white label ATMs: Srei Infrastructure Finance is planning to start roll‐out of its while label ATMs (WLAs) between July and September starting with a pilot of 200 Tier‐III towns in Uttar Pradesh and Bihar.

RBI relaxes gold loan norms: The Reserve Bank of India has allowed Non‐Banking Financial Companies, NBFCs to lend up to 75 per cent of the value of gold. It was 60 per cent earlier.

RBI scraps 26% cap on interest rate for MFIs: (RBI) removed 26 per cent cap on the interest rate that can be charged by a microfinance company to its borrowers. MFI is allowed to charge interest rate equal to 2.75 times the average of the base rates of the top five commercial banks.

RBI tightens norms for credit card holders: RBI advised banks to treat a credit card account as a non‐performing asset if the customer fails to pay the minimum due amount within a stipulated 90‐day period.

Reserve Bank of India (RBI) has hiked the trade related remittance limit from Rs. 2 lakh to Rs. 5 lakh per transaction amid increased number of transactions handled by Exchange Houses.

Reserve Bank of India asked banks not to levy penal charges on customers who don’t maintain a minimum balance in basic savings bank accounts.

Reserve Bank of India has warned all domestic banks to take steps before Microsoft ends its Windows XP software support from 8th April 2014.

Retirement fund body EPFO decided to increase the rate of interest on Provident Fund deposits to 8.75 percent from 8.5 percent.

SEBI grants new status to three clearing corporations ( National Securities Clearing Corporation, Indian Clearing Corporation and MCX-SX Clearing Corporation).

SEBI approved the new Corporate Governance norms. The new corporate governance norms would become applicable for all listed companies with effect from 1st October 2014.

State Bank of India (SBI) in tie-up with MasterCard on 8th September launched its first multi-currency international card to allow consumers to use a single card to pay in multiple currencies.

State Bank of India (SBI) on 13 September 2014 celebrated 150 years of its operations in Sri Lanka.

State Bank of India (SBI), ICICI Bank and Federal Bank Limited launched Savings account


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schemes for minors above 10 years of age. These accounts, which will be opened in the name of the minor, will offer a personalised cheque book and a debit card with a picture of his or her choice, the bank said in a statement.

State Bank of India launched off its channel on popular video sharing website Youtube. State Bank of India launched three digital banking facilities at the customer’s door step using

TAB Banking; one for customers opening Savings Bank accounts and another for Housing Loan Applicants. The Third is e-KYC (Know Your Customer).

State-run IDBI Bank has recently announced that it had entered into an agreement with FICCI, under which it would finance the industry lobby's small business members.

TATA Communications Payment Solutions Limited installed it’s 1000th White Lable ATM under the name “INDICASH”. (SBI PO 2014)

TCS became the first Indian Company to achieve a market capital value of 5 Lakh crore rupees.

The Axis Bank which is India's third largest private bank has been featured in Forbes Asia's FAB 50 list of 2014. This is the fourth time that Axis Bank has been featured and is amongst the only two banks in this renowned list.

The Bank of Bahrain and Kuwait, BBK, plans to expand its operations in India by opening its fourth branch in the country in New Delhi.

The Bank of Japan (BOJ) and RBI concluded an agreement that expands the maximum amount of the Bilateral Swap Arrangement (BSA) between the two countries to USD 50 billion.

o Note : BOJ Governor is Haruhiko Kuroda and RBI Governor Raghuram Rajan The Bharatiya Mahila Bank has launched “Nanhi Kali”, a recurring deposit scheme for the girl

child upto the age of 13 years with minimum monthly investment of Rs. 50 or a higher amount in exact multiples of Rs. 50. Rate of Interest would stay the same and the scheme also includes an accidental cover.

The Competition Commission of India (CCI) approved American retail giant Walmart Stores Inc’s proposal to acquire Bharti Group’s nearly 50 percent stake in their Indian wholesale stores joint venture.

The deadline for switching to new format bank cheques under the Cheque Truncation System (CTS) ended on 30 April 2014.

The Employees’ Provident Fund Organization will provide a permanent or universal account number (PAN) on the patter of core banking services to its over five crore active subscribers by end of 2014.

The expert committee headed by Urjit R. Patel, Deputy Governor of the Reserve Bank of India examine the current monetary policy framework of the Reserve Bank of India (RBI) has suggested that the apex bank should adopt the new CPI (consumer price index) as the measure of the nominal anchor for policy communication. The nominal anchor or the target for inflation should be set at 4 per cent with a band of +/‐ 2 per cent around it.

The Finance Ministry has asked public sector banks to tighten norms, including KYC monitoring for high-value fixed deposits, to check the kind of frauds suspected to have been committed at Dena Bank and OBC. Banks have been advised to categorise fixed deposits, which may fall under high value criteria.

The Indian Banks’ Association (IBA) has issued an advisory to banks to ensure business continuity after Microsoft ends support for its popular Windows XP operating system on 8th April.

The Indian Government is going to implement GST (Goods & Services Tax) new indirect tax


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regime from 1st April 2016. India has inked a loan agreement with World Bank for an assistance of $153 million (about Rs. 920 crore) for the Odisha Disaster Recovery Project.

The National Bank for Agriculture and Rural Development (NABARD) projected a credit potential of Rs. 12726.83 crore in the state focus paper (SFP) for the year 2014-15 in Uttarakhand under the priority sector.

The National Bank for Agriculture and Rural Development has sanctioned Rs. 348.63 crore to Karnataka under Rural Infrastructure Development Fund (RIDF).

The RBI on 2nd April 2104 has announced that it is granting “in-principle” approval to two applicants viz., IDFC Limited and Bandhan Financial Services Private Limited, to set up banks under the Guidelines on Licensing of New Banks in the Private Sector.

The RBI‐appointed committee on financial inclusion has recommended that the central bank should set up specialised banks called Payments Bank to provide payment services and deposit products to small businesses and low‐income households. The committee, headed by Nachiket Mor, said that since the new bank will be dealing with poor customers, such a bank must be allowed to accept a maximum deposit of not more than Rs 50,000.

The Reserve Bank of India (RBI) had set up a panel under executive director Deepak Mohanty to review the current system of data collection, dissemination and data management processes in the central bank and improve the existing mechanism.

The Reserve Bank of India (RBI) has adopted the new Consumer Price Index (CPI) (combined) as the key measure of inflation.

The Reserve Bank of India has kicked off a pilot project that will allow a few mobile payment providers to test cash withdrawal facilities for a small portion of their semi-closed mobile wallet users.

The Reserve Bank of India has proposed segregation of chairman and managing director (CMD) posts and a separate committee for appointment of directors on the board of PSU banks.

The Reserve Bank of India has raised the Foreign Institutional Investors, FIIs investment limit in the Power Grid Corporation to 30 per cent of its paid up capital, under the Portfolio Investment Scheme.

From 20th June 2014, The Reserve Bank of India permitted residents and non-residents, except Pakistanis and Bangladeshis, to carry up to Rs. 25,000 in Indian currency notes while leaving the country.

The State Bank of India (SBI), the country’s largest lender on 26 September 2014 announced that it has signed a Line of Credit (LoC) of 500 million dollar with Export-Import Bank of Korea (Korea Eximbank).

The UPA government's decision to ensure minimum monthly pension of Rs. 1,000 to subscribers of Employees' Pension Scheme-95 (EPS-95) will be implemented now as the elections are over.

The World Bank has approved a $300 million 30-year loan to help Serbia recover from floods in May that killed 57 people and devastated its energy sector.

The World Bank has signed an agreement with the government to provide a loan assistance of USD 1,006.20 million for Sarva Shiksha Abhiyan III, which is the largest ongoing "Education for All" programme in the world.

The World Bank said it is ready to commit $15-18 billion to support India over the next three years, even as its president endorsed the business model of Gujarat, the state that Narendra Modi ruled for over a decade before he became the Prime Minister in May.

The world’s first Bitcoin storage service that insures deposits of the digital currency against hackers and accidental loss has opened in London.

UN projected the global economy to grow at a pace of 3 percent in 2014 and 3.3 percent in 2015.


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WB (World Bank) projected economic growth rate of 5.7% for India in 2014-15 fiscal. World Bank approved a loan of $ 160 Million for Roads Sector Modernization Reformation

Project in Rajasthan. World Bank decided to double the credits to be given to India, China, Brazil, Mexico and

Indonesia. World Bank Group (WBG) and International Monetary Fund (IMF) Spring Meetings were held in

Washington D.C.., USA. World Bank provides 50 million dollars assistance to Afghanistan to support the government’s

efforts to improve access to credit for micro, small and medium enterprises.

Important Foreign Banks and Country

Bank Country Standard Chartered Bank

UK

Royal Bank of Scotland

UK

Berclays Bank UK Citi Bank USA JP Morgan Chase Bank

USA

Bank of America USA ABN AMRO Bank The Netherlands

Abu Dhabi Commercial Bank

UAE

Bank of Ceylon Sri Lanka BNP Paribas Bank France Societe Gednerale France China Trust Commercial Bank

Taiwan

Deustsche Bank Germany Scotia Bank Canada DBS Bank Singapore

Punch Lines of Banks

Hum Hai Na : ICICI Good People to Grow with : Indian

Overseas Bank With you All the Way : State Bank of India A Trusted Relationship : SBH Tradition of Trust : Allahabad Bank Trusted Family Bank : Dena Bank Good People to Bank with : Union Bank of

India Banking for All : IDBI Bank World’s Local Bank : HSBC We Understand your World : HDFC Friendly, Intelligent, Responsive : Andhra

Bank A Friend you can Bank upon : Vijaya Bank Together we Prosper : Bank of Rajasthan Your Perfect Banking Partner : Federal

Bank

Taking Banking Technology to Common Man : Indian Bank

Prosperity to All : Corporation Bank We are changing for you : Canara Bank Experience our Expertise : Yes Bank Central to you Since 1911 : Central Bank

of India Serving to Empower : J & K Bank The Changing Face of Prosperity : Lakshmi

Vilas Bank Where service is a way of life : Punjab &

Sindh Bank Where Every individual is Committed :

Oriental Bank of Commerce The Bank that begins with U : United Bank

of India Your Faithful & Friendly Financial Partner :

Syndicate Bank


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Relationship Beyond Banking : Bank of India

Honours your Trust : UCO Bank Smart Way to Bank : Karur Vysya Bank A Passion to Perform : Deutche Bank Experience Next Generation Banking :

South Indian Bank

The Name you can Bank upon : Punjab National Bank

India’s International Bank : Bank of Baroda

One Family, One Bank : Bank of Maharashtra

Banking and Financial Abbreviations

ACF Auto-Correlation Function AD Authorized Dealer ADB Asian Development Bank ADR American Depository Receipt AFS Annual Financial Statement AGM Annual General Meeting AIRCSC All India Rural Credit Survey

Committee AO Additive Outliers AR Auto Regression ARIMA Auto-Regressive Integrated Moving

Average AFS Available For Sale ASSOCHAM Associated Chambers of

Commerce and Industry of India ATM Asynchronous Transfer Mode ATM Automated Teller Machine BIS Bank for International Settlements BOI Bank of India BoP Balance of Payments BPM5 Balance of Payments Manual, 5th

edition BPSD Balance of Payments Division,

DESACS, RBI BSCS Basel Committee on Banking

Supervision BSR Basic Statistical Returns CAD Capital Account Deficit CAG Controller and Auditor General of India CBS Consolidated Banking Statistics

CC Cash Credit CD Certificate of Deposit CD Ratio Credit Deposit Ratio CDBS Committee of Direction on Banking

Statistics CF Company Finance CFRA Combined Finance and Revenue

Accounts CGRA Currency and Gold Revaluation

Account CII Confederation of Indian Industries CO Capital Outlay CP Commercial Paper CPI Consumer Price Index CPI-IW Consumer Price Index for Industrial

Workers CR Capital Receipts CRAR Capital to Risk Weighted Asset Ratio CRR Cash Reserve Ratio CSIR Council of Scientific and Industrial

Research CSO Central Statistical Organisation CVC Central Vigilance Commission DAP Development Action Plan DBOD Department of Banking Operations

and Development DBS Department of Banking Supervision,

RBI DCA Department of Company Affairs, (Now

known as Ministry of Companies Affairs, MCA)


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Government of India DCB Demand Collection and Balance DCCB District Central Cooperative Bank DCM Department of Currency Management,

RBI DD Demand Draft DDS Data Dissemination Standards DEIO Department of External Investments

and Operations DESACS Department of Statistical Analysis

& Computer Services, RBI DGBA Department of Government and Bank

Accounts, RBI DGCI&S Directorate General of Commercial

Intelligence and Statistics DI Direct Investment DICGC Deposit Insurance and Credit

Guarantee Corporation of India DID Discharge of Internal Debt DMA Departmentalized Ministries Account DRI Differential Rate of Interest Scheme DSBB Dissemination Standards Bulletin

Board DVP Delivery versus Payment ECB External Commercial Borrowing ECB European Central Bank ECGC Export Credit and Guarantee

Corporation ECS Electronic Clearing Scheme EDMU External Debt Management Unit EEA Exchange Equalization Account EEC European Economic Community EEFC Exchange Earners Foreign Currency EFR Exchange Fluctuation Reserve EPF Employees Provident Fund EUR Euro EXIM Bank Export Import Bank of India FCA Foreign Currency Assets FCCB Foreign Currency Convertible Bond FCNR(B) Foreign Currency Non-resident

(Banks)

FCNRA Foreign Currency Non-resident Account

FCNRD Foreign Currency Non-Repatriable Deposit

FDI Foreign Direct Investment FEMA Foreign Exchange Management Act FI Financial Institution FICCI Federation of Indian Chambers of

Commerce and Industry FII Foreign Institutional Investor FIMMDA Fixed Income Money Market and

Derivatives Association of India FISIM Financial Intermediation Services

Indirectly Measured FLAS Foreign Liabilities and Assets Survey FOF Flow Of Funds FPI Foreign Portfolio Investment FRA Forward Rate Agreement FRBM Fiscal Responsibility and Budget

Management Act, 2003 FRN Floating Rate Note FSS Farmers’ Service Societies FWG First Working Group on Money supply

Manual on Financial and Banking Statistics GDP Gross Domestic Product GDR Global Depository Receipt GFD Gross Fiscal Deficit GFS Government Finance Statistics GIC General Insurance Corporation GLS Generalized Least Squares GNIE Government Not Included Elsewhere GoI Government of India GPD Gross Primary Deficit G-Sec Government Securities HDFC Housing Development Finance

Corporation HFT Held For Trading HICP Harmonised Index of Consumer Prices HO Head Office HUDCO Housing & Urban Development

Corporation


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IBRD International Bank for Reconstruction and Development

IBS International Banking Statistics ICAR Indian Council of Agricultural

Research ICICI Industrial Credit and Investment

Corporation of India ICMR Indian Council of Medical Research IDB India Development Bonds IDBI Industrial Development Bank of India IDD Industrial Development Department IFAD International Fund for Agricultural

Development IFC International Finance Corporation IFC(W) International Finance Corporation

(Washington) IFCI Industrial Finance Corporation of India IFR Investment Fluctuation Reserve Account IFS International Financial Statistics IGLS Iterative Generalized Least Squares IIBI Industrial Investment Bank of India IIP Index of Industrial Production IIP/InIP International Investment Position IMD India Millennium Deposits IMF International Monetary Fund IN India INR Indian Rupee IOTT Input-Output Transaction Table IP Interest Payment IRBI Industrial Reconstruction Bank of India ISDA International Swaps and Derivative

Association ISIC International Standard Industrial

Classification ISO International Standards Organization ITRS International Transaction Reporting

System IWGEDS International Working Group on

External Debt Statistics KVIC Khadi & Village Industries

Corporation LAF Liquidity Adjustment Facility

LAMPS Large-sized Adivasi Multipurpose Societies

LAS Loan & Advances by States LBD Land Development Bank LBS Locational Banking Statistics LERMS Liberalised Exchange Rate

Management System LIC Life Insurance Corporation of India LS Level Shift LT Long Term LTO Long Term Operation M1 Narrow Money M3 Broad Money MA Moving Average MCA Ministry of Company Affairs MIGA Multilateral Investment Guarantee

Agency MIS Management Information System MMSE Minimum Mean Squared Errors MoF Ministry of Finance MOF Master Office File MRM Monitoring and Review Mechanism MSS Market Stabilisation Scheme MT Mail Transfer MTM Mark-To-Market NABARD National Bank for Agriculture and

Rural Development NAC(LTO) National Agricultural Credit

(Long Term Operation) NAIO Non Administratively Independent

Office NAS National Account Statistics NASSCOM National Association of Software

and Services Companies NBC Non-Banking Companies NBFC Non Banking Financial Companies NEC Not Elsewhere Classified NEER Nominal Effective Exchange Rate NFA Non-Foreign Exchange Assets NFD Net Fiscal Deficit NGO Non-Governmental Organization NHB National Housing Bank


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NIC National Industrial Classification NIF Note Issuance Facility NNML Net Non-Monetary Liabilities NPA Non-Performing Assets NPD Net Primary Deficit NPRB Net Primary Revenue Balance NPV Net Present Value NR(E)RA Non-Resident (External) Rupee

Account NR(NR)RA Non-Resident (Non-Repatriable)

Rupee Account NRE Non-Resident External NRG Non-Resident Government NRI Non-Resident Indian NSC National Statistical Commission NSSF National Small Savings Fund OD Over Draft ODA Official Development Assistance OECD Organisation for Economic

Cooperation and Development OECO Organisaton for Economic Co-

operation OFI Other Financial Institutions OLTAS OnLine Tax Accounting System OMO Open Market Operations OSCB Other Indian Scheduled Commercial

Bank PACF Partial Auto-Correlation Function PACS Primary Agriculture Credit Societies PCARDB Primary Cooperative Agriculture

and Rural Development Bank PD Primary Deficit PDAI Primary Dealers Association of India PDO Public Debt Office PDO-NDS Public Debt Office-cum-

Negotiated Dealing System PDs Primary Dealers PES Public Enterprises Survey PF Provident Fund PIO Persons of Indian Origin PMJDY Pradhan Mantri Jan-Dhan Yojana PNB Punjab National bank

PO Principal Office PRB Primary Revenue Balance PSE Public Sector Enterprises PUC Paid Up Capital QRR Quick Review Report RBI Reserve Bank of India RD Revenue Deficit RDBMS Relational Database Management

System RE Revenue Expenditure REC Rural Electrification Corporation REER Real Effective Exchange Rate RFC Residents Foreign Currency RIB Resurgent India Bonds RIDF Rural Infrastructure Development Fund RLA Recoveries of Loans & Advances RLC Repayment of Loans to Centre RMB Renminbi (Chinese) RNBC Residuary Non-Banking Companies RO Regional Office RoCs Registrars of Companies RPA Rupee Payment Area RPCD Rural Planning and Credit

Department, RBI RR Revenue Receipts RRB Regional Rural Bank RTP Reserve Tranche Position RUF Revolving Underwriting Facility RWA Risk Weighted Asset SAM Social Accounting Matrix SAS Statistical Analysis System SBI State Bank of India SC Schedule Caste SCARDB State Cooperative Agriculture and

Rural Development Bank SCB State Cooperative Bank SCB Scheduled Commercial Bank SCS Size Class Strata SDDS Special Data Dissemination Standards SDR Special Drawing Right SEBI Securities and Exchange Board of India SEBs State Electricity Boards


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SFC State Financial Corporation SGL Subsidiary General Ledger

Abbreviations SGSY Swarnajayanthi Gram Swarrojgar

Yojana SHGs Self-Help Groups SIDBI Small Industries Development Bank of

India SIDC State Industrial Development

Corporation SI-SPA Systems Improvement Scheme under

Special Project Agriculture SJSRY Swarna Jayanti Shahari Rojgar

Yojana SLR Statutory Liquidity Ratio SLRS Scheme for Liberation &

Rehabilitation of Scavangers SMG Standing Monitoring Group SNA System of National Accounts SRWTO Small road & Water Transport

Operators SSI Small-Scale Industries SSSBEs Small Scale Service & Business

Enterprises

ST Schedule Tribe SWG Second Working Group on Money

Supply TBs Treasury Bills TC Temporary Change TT Telegraphic Transfer UBB Uniform Balance Book UBD Urban Banks Department UCB Urban Cooperative Bank UCN Uniform Code Number US United States USD US Dollars UTI Unit Trust of India VC Venture Capital WGMS Working Group on Money Supply:

Analytics and Methodology of Compilation WPI Wholesale Price Index WSS Weekly Statistical Supplement YTM Yield to Maturity ZO Zonal Office

Credit Rating Agencies : Credit rating is the technique of credit risk valuation for the corporate debt instruments reflection

borrower’s expected capability and inclination to pay interest and principle in a timely manner. John Moody first introduced the concept in 1909. Methodology : A ration exercise is done at the request of the company. It applies to a particular debt

obligation of the company and is not a general purpose evaluation of the company.

Name of Agency Service Established Head Quarter Head / Key People

Moodys Investor Service

Bond Market 1909 New York, USA City

Raymon W. MC Daniel Jr

Standard and Poor

Financial Services 1860 New York, USA City

Doulas L. Peterson (President)

Fitch rating Financial Services 1913 New York City, USA & London, UK

Paul Taylor (CEO & President)

Credit Rating Research, Risk and 1987 Mumbai, India Ms. Roopa Kudva


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Information Services of India Limited (CRISIL)

Policy Advisory (MD & CEO)

Investment Information and Credit Rating Agency of India (ICRA)

Credit Rating and Financial Consulting

1991 Gurgaon, India Naresh Takkar, (CEO)

Credit Information Bureau India Ltd. (CIBIL)

Research, Risk and Policy Advisory

2000 Mumbai, India M. V. Nair (Chairman)

CARE Credit Rating, Risk 1993 Sion (East), Mumai, India

O. V. Bundellu (Chairman)

SMERA (FOR msme’s)

Research, Risk & Policy Advisor

2005 Mumbai, India Sudesh Kumar (Chairman)

Bric Work India Research, Risk & Advisory

2007 Bangalore, India Vivek Kulkarni (Chairman & CEO)

Union Budget 2014-15 Highlights

ndian Finance Minster Arun Jaitley presented the Narendra Modi Government’s maiden Budget for the year 2014-15 on 10th July 2014. In this budget the modi govenrment mainly focused to keep up their

election promises. In this budget Arun Jaitely has mentioned the issues like Raising the personal tax exemption limit by Rs. 50,000, raising the Foreign Direct Investment (FDI) limit to 49%, Ganga Conservation Mission called 'Namami Gange' with Rs 2,037, Increasing safety of women in large cities with Rs. 150 crores, setting up 100 smart cities with Rs 7,060 crore, National Rural Internet and Technology Mission etc. He confidently stated that this budget can can growth even while curbing borrowing, after the country's longest slowdown in a quarter of a century. Below are the Highlights of Union Budget 2014-15.

Highlights of Union Budget 2014-15

FY16 Fiscal Deficit Target at 3.6% FY17 Fiscal Deficit Target at 3% Rs. 200 crore for 6 more textile clusters in Rase Bareily, Lucknow, Surat and Bhagalpur. Rs. 30 crore set aside for 'hasthakala academy' for reviaval of handicrafts Rs. 50 crore set aside for Pashmina Production programme in J&K Rs. 378,800 crore for NHAI and State Highways Rs. 3,000 crore for raods in North East Rs. 4,200 corre for Jal Marg Vikas project on river Ganga connecting allahabad to Haldia 100 : Number of new cities government will build Rs. 7,060 cr : Amount sanctioned for creation of new smart cities E-Visas : To be introduced at 9 airports to provide much requried boost to tourism Rs. 200 crore : Amount sanctioned for Sardar Patel statue Rs. 500 crore : To be spent on Gram Jyhothi Youjana Rs. 6,000 crore : Amount for welfare of senior citizens Rs. 150 crore : To be spent to enhance safety of women on roads Rs. 1,000 crore : Pension for EP subscriber scheme

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Taxes Highlights : o Rs. 2.5 lakh : Tax exemption limit for small & marginal, senior tax payers, up from Rs. 2

lakh o Rs. 3 lakh : Tax exemption limit for senoir citizens, up from Rs. 2.5 lakh o Rs. 1.5 lakh : Increased investment limit under Section 80C, up from Rs. 1 lakh o Rs. 2 Lakh : Revised housing lan regate, up from Rs. 1.5 lakh o No change in tax rates o No change in surcharge

Agriculture highlights o Rs. 100 crore set aside for schemes to provide soil health card o Rs. 56 crore for soil testing labs across the country o Rs. 200 crore set aside for agriculture universities in AP and Rajasthan, and Horticulture

University in Haryana, Telangana o 5 lakh landless farmers to be provided finance through NABARD o Rs. 8 lakh crore set aside for development of agriculture sector o 3% amount of incentive to be given to farmers repaying loans on time o Rs. 100 crore set aside for Kisan Television to provide real time information on various

farming and agriculture issues Education Highlights

o Rs. 100 crore for Beti Bachao-Beti Padhao yojana o 4 new AIIMS to be set up in AP, UP, WB and Maharashtra o Rs. 28,000 core for sanitation in all primary schools o 12 more governement medical colleges to be set up o 5 new IITs and IIMs to be set up o Rs. 3,600 crore for rural drinking water programme o Rs. 8,000 crore for rural housing scheme o Rs. 100 crore to be spent on upgrading madarsas

Highlights of Economic Survey 2013-14

day ahead of the Union Budget 2014-15, Indian Finance Minister Arun Jaitley has presented the Economic Survey for the year 2013-14 in Lok Sabha on 9th July 2014. According to this survey,

India's economy is expected to grow between 5.4 percent and 5.9 Per Cent in the current fiscal year. A flagship annual document of the Ministry of Finance, the Economic Survey reviews the developments in the Indian economy over the previous 12 months, summarizes the performance on major development programs, and highlights the policy initiatives of the government and the prospects of the economy in the short to medium term. Below are the highlights of Economic Survey 2013-14.

Major Highlights of the Economic Survey 2013-14

GDP growth seen at 5.4-5.9% in 2014/15 Growth rate of 7-8% can occur after 2015/16 Poor monsoon, external factors pose risk to growth Need subsidy reforms for fiscal consolidation Raise tax-to-GDP ratio for fiscal consolidation CAD to be contained at 2.1% of GDP in 2014-15 Wholesale inflation expected to moderate by end-2014 Retail inflation showing signs of moderation

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Reduce spillovers from food to non-food inflation by putting in place a formal monetary policy framework

Contain revenue shortfall via better mobilisation, reforms Move towards simple tax regime, fewer exemptions, GST rate Need DTC as clean modern replacement for existing I-T laws Cutting capital expenditure not good for economy Changes in tax administration required Need sharp fiscal correction, new FRBM Act with ‘teeth’ Government needs to move towards low and stable inflation through fiscal consolidation RBI intervention in forex market behind accumulation of reserves “generally” Rupee has stabilized, reflecting an overall sense of confidence in forex and capital markets Time over-runs in infra project main cause of under achievement in the sector Exports still fragile; Iraq crisis a risk Industrial growth expected to revive gradually over 2-yearr Indian legislation governing business need thorough revamp Improve business environment by shifting important decision making from inspectors to higher

officers Re-examine laws that empower govt to interfere in markets Capital controls under FEMA do not support rapidly globalizing economy. Banking sector impacted by global and domestic slowdown State APMC laws hurdle to modernisation of good economy; have created cartels of buyers who

possess market power Foodgrains production to go up to 264.4 MT in 2013/14 Need to review nutrient—based fertiliser subsidy Plan to add 88,537 MW power capacity over next 5 yrs Allow private companies to mine coal commercially Gold & silver imports dropped 40% to $33.4 bn in 2013/14Improvement in fiscal deficit and

CAD to feed higher growth India’s increase in share in world services exports from 0.6% in 1990 to 3.3% in 2013 faster than

goods exports Despite deceleration, services GDP growth at 6.8% was above the 4.7% overall GDP in 2013/14 3 milestones of 2013/14: passage of PFRDA Act, shift of commodity futures trading into FinMin

& presentation of FSLRC report Poverty ratio declined from 37.2% in 2004/05 to 21.9% in 2011/12.

Railway Budget 2014-15 Highlights

he Union Railway Minister D.V. Sadananda Gowda presented his maiden Railway Budget in Parliament on 8th July 2014, promising to seek increased foreign and domestic private investment to fund

modernization of the country's huge but badly stretched network. The state-owned railway has suffered from years of low investment and populist policies to subsidise fares. These have reduced the system to a slow, congested network that crimps economic growth. Here are the highlights of this Budget.

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No new increase in passenger fares and freight charges Bullet train in Mumbai-Ahmedabad sector Diamond quadrilateral for high speed trains Plan to hike speed of trains to 160-200 km/hr in 9 sectors Online booking to support 7,200 tickets per minute; to allow 1.2 lakh users log in simultaneously Reservation system to be revamped, ticket-booking through mobile phones, post offices to be

popularized Online platform for unreserved tickets Combo parking-platform tickets at stations Women RPF Constables to escort ladies coaches; 4,000 women constables to be inducted Retiring room facility to be extended to all stations Battery operated cars for differently-abled and senior citizens at major stations Feedback services through IVRS on quality of food Food can be ordered through SMS, phone; Food courts at major stations Cleanliness budget up by 40 per cent over last year CCTVs to be used at stations for monitoring cleanliness Setting up of corpus fund for stations’ upkeep; RO drinking water in some stations and trains Automatic door closing in mainline and sub-urban coaches 58 new trains and extension of 11; 864 additional EMUs to be introduced in Mumbai over 2 years FDI in railway projects, except in operations FDI, domestic investments in rail infrastructure Office-on-Wheels: Internet & workstation facilities on select trains WiFi in A1, A category stations and in select trains Railways university for technical and non-technical subjects Some stations to be developed to international standards through PPP model Parcel traffic to be segregated to separate terminals to make passenger traffic unhindered Loss per passenger per kilometre up from 10 per cent in 2000-01 to 23 per cent in 2012-13 Solar energy to be tapped at major stations Highest ever plan outlay of Rs. 65,455 crore for 2014-15 Expenditure in 2014-15 pegged at Rs. 149,176 crore.

New Trains

Jansadharan Trains 1. Ahmedabad-Darbhanga Jansadharan Express via Surat 2. Jaynagar-Mumbai Jansadharan Express 3. Mumbai-Gorakhpur Jansadharan Express 4. Saharasa-Anand Vihar Jansadharan Express via Motihari 5. Saharasa-Amritsar Jansadharan Express

Premium Trains 1. Mumbai Central-New Delhi Premium AC Express 2. Shalimar-Chennai Premium AC Express 3. Secunderabad-Hazrat Nizamuddin Premium AC Express 6 4. Jaipur-Madurai Premium Express


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5. Kamakhya-Bengaluru Premium Express AC ExpressTrains

1. VijayawadaNewDelhiAPExpress (Daily) 2. LokmanyaTilak(T)-Lucknow (Weekly) 3. Nagpur-Pune (Weekly) 4. Nagpur-Amritsar (Weekly) 5. Naharlagun-NewDelhi (Weekly) 6. Nizamuddin-Pune (Weekly)

Express Trains 1. Ahmedabad-Patna Express (Weekly)via Varanasi 2. Ahmedabad Chennai Express (Biweekly)via Vasai Road 3. Bengaluru -Mangalore Express (Daily) 4. Bengaluru -Shimoga Express (Biweekly) 5. Bandra(T)-Jaipur Express (Weekly) via Nagda, Kota 6. Bidar-Mumbai Express (Weekly) 7. Chhapra-Lucknow Express (Tri weekly) via Ballia, Ghazipur, Varanasi 8. Ferozpur-Chandigarh Express (6 days a week) 9. Guwahati-Naharlagun Intercity Express (Daily) 10. Guwahati-Murkongselek Intercity Express (Daily) 11. Gorakhpur-Anand Vihar Express (Weekly) 12. Hapa-Bilaspur Express (Weekly)via Nagpur 13. Hazur Saheb Nanded-Bikaner Express (Weekly) 14. Indore-Jammu Tawi Express (Weekly) 15. Kamakhya-Katra Express (Weekly) via Darbhanga 16. Kanpur-Jammu Tawi Express (Biweekly) 17. Lokmanya Tilak(T)-Azamgarh Express (Weekly) 18. Mumbai_Kazipeth Express (Weekly) via Balharshah 19. Mumbai-Palitana Express (Weekly) 20. New Delhi Bhatinda Shatabdi Express (Biweekly) 21. New Delhi-Varanasi Express (Daily) 22. Paradeep-Howrah Express (Weekly) 23. Paradeep-Visakhapatnam Express (Weekly) 24. Rajkot-Rewa Express (Weekly) 25. Ramnagar-Agra Express (Weekly) 26. Tatanagar Baiyyappanahali (Bengaluru) Express (Weekly) 27. Visakhapatnam-Chennai Express (Weekly)

Passenger Trains 1. Bikaner-Rewari Passenger (Daily) 2. Dharwad-Dandeli Passenger (Daily)via Alnavar 3. Gorakhpur-Nautanwa Passenger (Daily) 4. Guwahati-Mendipathar Passenger (Daily) 5. Hatia-Rourkela Passenger 7 6. Byndoor-Kasaragod Passenger (Daily) 7. Rangapara North-Rangiya Passenger (Daily)


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8. Yesvantpur-Tumkur Passenger (Daily) MEMU services

1. Bengaluru-Ramanagaram 6 days a week (3 Pairs) 2. Palwal-Delhi-Aligarh

DEMU services 1. Bengaluru-Neelmangala (Daily) 2. Chhapra-Manduadih (6days a week) via Ballia 3. Baramula-Banihal (Daily) 4. Sambalpur-Rourkela (6 days a week) 5. Yesvantpur-Hosur (6 days a week)

International Financial Organizations (Fast Facts)

o World Bank / IBRD o Head Quarters : Washington o Established on : 1944 o President : Jim Yong Kim o Member Countries : 188 Countries o New Member : South Sudan on 18th April 2012

o International Development Association (IDA) o Formed in - 8th November 1960 o Head Quarters - Washington, D.C o Members - 172 Countries o Newest Member - South Sudan (18th April 2012) o Parent Organization - World Bank o President - Jim Yong Kim (President of the World Bank) o Largest Borrower - India

o United Nations Conference on Trade and Development (UNCTAD) o Established in - 1964 o Headquarters - Geneva, Switzerland o Members - 194 o Secretary-General - Mukhisa Kituyi o New Member - FUNGLODE

o World Trade Organization o Head Quarters - Centre William Rappard, Geneva, Switzerland o Head - Roberto Azevêdo o Members - 160 o FOrmed on - 1st January 1995 o New Member - Yemen on 26th June 2014

o European Union (EU) o Capital : Brussels (de facto) o Heads :


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President of the European Council - Herman Van Rompuy President of the European Commission - Jos Manuel Barroso (Jean-Claude Juncker will

be the new president from November 2014) o Formation (year wise)

23rd July 1952 - Treaty of Paris 1st January 1958 - Treaty of Rome 1st July 1967 - Merger Treaty 1st November 1993 - Treaty of Maastricht 1st December 2009 - Treaty of Lisbon

o Members : 28 memers o Newest member - Croatia (joined on 1st July 2013).

o Association of South East Asian Nations (ASEAN) o Head Quarters : Jakarta, Indonesia o Secretary General : Lê Luong Minh o Established on : 8th August 1967 o Members :

Brunei Cambodia Indonesia Laos Malaysia Myanmar (Burma) Philippines Singapore Thailand Vietnam

o Asian Development Bank (ADB) o Established on : 22nd August 1966 o Head Quaters : Manila, Philippines o President : Takehiko Nakao o Member Countries : 67 o Regional Members : 48 (New Member - Georgia in 2007) o Non Regional Members : 19 (New Member - Ireland in 2006) o Principal Subscriber : Japan (with the subscribed capital 15.670 %)

o International Finance Corporation (IFC) o Head Quarters : Washington, D.C. o Established on - 20th July 1956 o CEO - Jin-Yong Cai o Current Membership - 184 Members o New Member - South Sudan on 18th April 2012

o International Monetary Fund (IMF) o Head Quarters : Washington, D.C., United States o Managing Director : Christine Lagarde o Current Membership : 188 Countries


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o Founding Countries - 29 o Member Countries - 188 o Newest Member : South Sudan on 18th April 2012 o Staff - 2,400 (approx)

Latest Schemes & Plans Launched by Union & State Governments

Amma Cement Scheme : Tamil Nadu Government launched this scheme. Under this scheme, it will procure cement from private manufacturers and sell them at Rs 190 per bag in the wake of possible increase in rates of the key construction component.

Anna Bhagya : A programme launched in Karnataka. The programme entitles distribution of 30 kg rice at one rupee per Kg to over 98 lakh BPL and Antyodaya card holders in the state.

Annapurna : Under this scheme. 10 kg of food grains are provided to BPL households free of cost every month.

Bhagat Puran Singh Sehat Beema Yojana (BPSSBY) : Health care scheme for BPL families launched in Punjab.

Deen dayal upadhyaya gram jyothi yojana : This scheme is for power supply in rural area. e-inclusion project : Centre recently launched e-inclusion project to spread e literacy. This project is

an initiative to make at least one individual in every household e-literate, under the project, economically weaker sections of the society including rural SC, ST and women will receive IT training.

Free CFL bulb Scheme (Tamil Nadu) : Tamil Nadu governement launched free CFL bulb scheme under this scheme state government will provide free compact fluorescent light bulbs to over 14 lakh hut dwellers in the state, an energy saving measure aimed at saving 40 mw of power.

Golden Girl (Bangaru Talli) Scheme : A unique scheme, launched in Andhra Pradesh, to protect girl child and ensure her education.

Krishi Amdani Beema Yojana : To help the farmers don’t bear any financial burden if their produce gets destroyed due to unexpected weather or for any other reason.

Mahatma Gandhi Pravasi Suraksha Yojana (MGPSY) : This schem eis a pension and life insurance scheme and is recoghnised by th eIndian governement. This scheme was launched in the UAE. A leading Indian financial and health care service player has tied up with the UAE Exchange to offer MGPSY in the Gulf country.

National Gramin Awas Mission : Rural housing scheme to cover all homeless by 2022. Neerachal : for watershed development. Pradhan mandhiri krishi sinchayee yojana : This scheme is for for assured irrigation. Pradhan mantri gram sadak yojana : Road connectivity to unconnected villages. Pradhan Mantri Gram Sinchai Yojana : To boost agricultual yield, Govt launched "Pradhan

Mantri Gram Sinchai Yojana". Pradhanmantri Jan-Dhan Yojana : To provide bank accounts, insurance cover and a debit card to

all the citizens of the country. Project Uddan : The project, an initiative of the Prime Minsiter, the National Skills Development

Corporation and the Ministry of Home Affairs and industry, was startyed with the aim of providing skills to 40,000 youth over a period of five years.


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Rajiv Gandhi Jeevandayee Arogya Yojana : A health insurance scheme was launched in Maharashtra.

Rani Laxmi Bai Pension Scheme : 'Special pension' would be given to Muzaffarnagar riot victims by U.P. Govt. The pension, which would be anywhere between Rs. 400 and Rs. 500, would be givne under this scheme.

'Roshini' Scheme : Centre launched this scheme for skill development and job placement for rural youth and women in maoist affected 24 districts in 9 states.

Shyam prasad mukherji Rurban mission : This is for integrated project based infrastructure in rural.

The Vikram Unyogpuri (Delhi-Mumbai industrial Corridor) : This project was launched in Madhya Pradesh.

Swavlamban Abhiyan : Prime Minister Narendra Modi launched 11 welfare schems of Gujarat government under the title of ‘Swavlamban Abhiyan’. The schemes are;

1. Aid to milk producing cattle and equipments to tribal women, 2. Distribution of milking machines and chaff cutters among cooperative rural milk producing

women groups, 3. Assistance to cooperative milk producing women groups to build ‘dudh ghar’, 4. Mukhyamantri Amrutam Maa Vatsalya Yojana, 5. Assistance for health care to construction labors suffering from occupational health diseases, 6. Interest benefit to farmers to build warehouse in farm, tablet distribution to ITI apprentice

studying computer courses, 7. Pandit Dindayal Upadhyaya young entrepreneurs scheme, 8. Benefit in interest on self employment loan to ITI passed apprentice, 9. Shri Nanaji Deshmukh housing scheme, 10. Dattopant Thengdi labor interest assistance scheme for construction laborers, 11. Impex-B’s formation to expand employment oriented services and middle class oriented

schemes.

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