IBPS CLERK 2014-15 Interview Magazine

All the necessary articles are given.

We are extremely sorry for uploading so late. As our HDD crashed two week ago,we could not recover a single file.

The Current Affairs Bits are added, You need to read CA till 14th January. Read thequizzes we have provided on Current Affairs.

RBI Rates:

CRR - 4.00SLR - 22.00Repo - 7.75Reverse Repo - 6.75MSF - 8.75Bank Rate - 8.75

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Credits: Sourav, Sandeepana, Anubhav, Sohom and All the Group Membersfor giving ideas and supporting.

BASIC Questions and Tips in Interview:

1) Never Say Something which Cannot Be Achieved. This shows you are Immature.

2) Sometimes you can argue with the HR only if you have the valid point.

3) When asked about your past employers, never ever tell "They were bad".

4) Don't drag your family problems into your interview, it shows you are emotionally weak.

5) Don't say, "I'm Workaholic" "I love to Work 24x7", this is the oldest line in the interview.

6) Always keep Recent and Major Events information about the Bank you are giving interview.

7) Don't stammer while answering, it shows your confidence level is low.

i) Tell us something about yourself / Brief yourself / Introduce Yourself.

Answer: Note, this is the MOST Important Question for Your Attitude Score. This will decide your attitude

towards the job. You should start with a smile on your face and a gentle voice. Don't have a

Underestimating, Aggressive tone while describing. Describe yourself in short with

only Academic Achievements and Professional Achievements.

ii) How do you Handle Pressure?

Answer: This is the perfect opportunity to describe your strengths and how do you fight back in hard

situations. Don't boast about yourself, just be authentic about what you are saying. You can describe

many academic situations where you had to handle a lot of pressure and you came back strong.

iii) Why do you Believe that you are Qualified for this Position?

Answer: Tell them about the positive qualities you have and how you can improvise yourself. No need to

pull technology and how good you can type stuffs.

iv) Where do you see yourself after 5/3 years?

Answer: Never ever Say things which CANNOT Be achieved in 3/5 years. That will prove you immature,

which does not show any confidence. You can tell that you will be 1-2 management position ahead if

your hard work is appreciated by the respected seniors.

v) Why banking when you are from Engineering/Technical field?

Answer: Be honest but with some brief explanation. You can easily describe how Banking has tied up

with technology. How technology advancement made banking easier. How technology is helping the

Financial Inclusion Programme.

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1. Attire:

Make sure you dress up in FORMALS. By formals I mean shirt and trousers for male and Salwar Kameez

or Saree for female. Female who are appearing for the interview in metro cities can wear Trousers and

Shirts. But always make sure you are comfortable wearing it because trying to adjust what you are

wearing constantly during the interview leaves a bad impression on the HRs.

2. Colour:

Never wear fancy colours during the banking interview.

Male: For male, the colour of the shirt should be light and trousers must be dark in colour.

Female: Ladies can dress up in Salwar Kameez without any shiny stitch work and colour should be light.

Same is applicable to women wearing sarees.

3. Accessories:

Male: Tie is a must for male. Tie has to be of dark colour preferably BLACK OR BLUE (deep). As, BLACK &

BLUE can be worn with any colour shirt.

Belt should be worn without a fancy buckle. Watches should be of simple dial (medium size). Watches

with big dials should be avoided.

Female: Female should not wear heavy jewellery. The earring should be simple preferably small in size.

Shoes with heels shouldn't make noise while entering the room. It gives a bad impression. Watches

should be of medium or small dial size.

4. Winter wear:

Male: Blazers are preferred above the shirt and tie. Blazers colour should match with the trouser colour.

If you are wearing a sweater then sweaters with tags or stickers on it should not be worn. Colour should

not be orange or yellow. Dark Colour sweater is preferred.

Female: Cardigans worn above Salwar Kameez or sari should be dark in colour. Cardigans with fancy

stitch work should not be worn. Avoid taking a shawl or stole to the banking interview.

Ladies wearing trousers and shirt should follow the dress code I have described for the male.

It’s not that what you wear in the interview, you have to wear forever in your career. So even if you

choose to wear western for interview it is not a big deal. Just be sure you are comfortable.

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1. What do you know by stale cheque?- When the cheque becomes out of date and cannot beencashed, it is termed as stale cheque. For example, the validity period of any cheque is threemonths and when a cheque dated: 10.01.2012 is presented for payment on 10.01.2013, it isconsidered as a stale cheque, since the cheque is more than three months old.

2. What do you mean by post dated cheque?- When the date of the cheque is beyond the date onwhich the cheque is presented for payment, the cheque is considered to be post dated. Forexample, when a cheque dated: 10.02.2013 is presented for payment on 10.01.2013, it isconsidered to be a post dated cheque.

3. What do you know by current chest? - Currency chests are operated by RBI so that they canprovide good quality currency notes to the public. However, RBI has appointed commercial banksto open and monitor currency chests on behalf of RBI. The cash kept in currency chests isconsidered to be kept in RBI and

4. What is meant by minimum balance to be maintained in the accounts? In the case ofsavings bank and current account deposits, the banks stipulates a minimum balance to bemaintained. The minimum balance varies from bank to bank and when the balance in the accountfalls below the minimum balance then banks debit the account with some penal charges. Somebanks insist quarterly average minimum balance to be maintained instead of regular minimumbalance to be maintained.

5. What do you mean by tax deduction at source? TDS means tax deducted at source. Banks mustdeduct tax from the interest paid on the fixed deposit when the interest paid on fixed depositsto a customer exceeds Rs. 10000/- during the accounting year. TDS is applicable to fixed depositsonly and is applicable to savings bank deposits.

6. What do you mean by weaker sections? - The following categories are termed as weakersections namely - small business enterprises; marginal farmers; artisans/village and cottageindustries for whom loans are granted upto Rs. 50000.00; SGSY beneficiaries; SC/STbeneficiaries; DIR beneficiaries; SJSRY beneficiaries; SLRS; self help groups and people belonging tominority community.

7. What do you know by MICR? - MICR means magnetic ink character recognition. Nowadays,the cheques are issued in MICR formats in metropolitan centres namely; Mumbai, Chennai,Kolkata, Bangalore etc. The MICR code is readable by a reader sorter computer which helps inquick sorting of the cheques towards immediate adjustment of the amount to be received and paidby the banks in the clearing house. MICR code consists of the following namely; the chequenumber, name of the city, name of the bank, name of the branch, account category etc. and bankssimply type the amount of the cheque in the MICR portion using scanners so that the sorterreader is able to read the entire information in regard to the cheque instantaneously.

8. What do you mean by cheque truncation? - Under cheque truncation, the physical cheque isreplaced by the digital image of the cheque after scanning. Once the cheque is truncated thephysical cheque is cancelled and from the moment of truncation only the digital image has life.The digital image of the cheque which contains the digital signature of a bank officer as to itsauthenticity is processed by all banks and payment is effected. Cheque truncation helps in quickprocessing of the cheques drawn even on far away places since there is no necessity to physicallymove the cheque from one place to another place.

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9. What do you mean by ECS?- ECS means electronic clearing service and this facility is usedwhere a large number of small value payments or receipts are to be made or received. ECS canbe used for either debit transactions or credit transactions. When a company wants to paydividends to large number of shareholders, they use ECS credit facility and by debiting thecompany's account, the shareholders accounts are credited with the dividend amountinstantaneously. Similarly when an accountholder can use ECS debit facility towards effectingpayment to telephone charges each month.

10. What do you mean by bank assurance? Hither to banks were dealing with acceptance ofdeposits and lending loans to the customers apart from undertaking certain ancillary services.Nowadays banks started selling insurance policies of prominent insurance companies by havingtie up arrangements with such companies and banks earn commission for such transactions.

11. What do you mean by Universal banking? - Universal banking is the concept under whichbanks can provide various types of services namely; deposits, loans, safe deposit lockers, safecustody services, dealing with mutual fund schemes, selling insurance policies, selling gold coins,dealing with issue of shares and debentures etc. Thus at present banks are becoming like asupermarket for all kinds of financial products and such concept is called as universal banking.

12. What do you mean by Regional Rural Banks? - The Regional Rural Banks are relatively newbanking institutions which were added to the Indian banking scene since October, 1975. Thedistinctive feature of a rural bank is that though it is a separate body corporate with perpetualsuccession and common seal, it is very closely linked with the commercial bank which hassponsored the proposal to establish it.

13. What do you mean by National Housing Bank?- National Housing Bank was established underthe National Housing Bank act, 1987 as an apex body and the key function of National Housing Bankis the development of the housing sector and it is a wholly owned subsidiary of Reserve Bank ofIndia. National Housing Bank undertakes the following activities namely; promotion anddevelopment of housing finance companies; regulation and supervision of housing financecompanies and providing both direct finance and indirect finance to housing sector.

14. What do you mean by NABARD? - National Bank for agriculture and rural development wasset up in 1982 as an apex development bank in the field of agricultural finance and ruraldevelopment. NABARD is set up by the Government for the purpose of facilitating credit flowfor promotion and development agriculture and integrated rural development. It coverssupporting all other allied economic activities in rural areas, promoting sustainable ruraldevelopment and ushering in prosperity in the rural areas.

15. What do you mean by EXIM Bank? - Export and Import Bank of India was set up during theyear, 1982 for the purpose of financing, promoting and facilitating foreign trade in the country. Itis wholly owned by the Government of India. The bank apart from enhancing exports from thecountry, integrates the country's foreign trade and investment with the overall economic growth.

16. What do you mean by SIDBI? - SIDBI was established for the purpose of assisting andpromoting small scale industry. It was established on 2.4.1990. It is the principal financialinstitution established for the promotion, financing and development of industry in the small scalesector and to coordinate the functions of the institutions engaged in the promotion and financingor developing industry in the small scale sector.

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17. What do you mean by NBFCs? - Non Banking Finance Companies provide finance for smallventures but at the same time they are more customer oriented and operate at low volumescompared to the banks. They also collect deposits from customers and offer slightly higherinterest rates on deposits compared to the banks.

18. What do you mean NEFT and RTGS - The two options namely - national electronic fundstransfer and RTGS - real time gross settlement offered by Reserve Bank of India allow electronictransfer of funds from the remitter who has an account in one bank to the beneficiary who hasaccount in any other bank/branch. The transfer can be carried out using the internet bankingfacility. The minimum amount that can be transferred by RTGS is Rs. 2.00 lakh and there is no suchlimit for transfer through NEFT. It is settled in batches at times defined by the Reserve Bank of India.RTGS transactions are settled continuously as and when they are put through. The transfer of fundsthrough NEFT and RTGS can also be carried out by submitting the remittance form at the remitter'sbank branch.

19. What do you mean IFSC code? - IFSC means Indian financial system code. It is a eleven digitcode to identify the bank branch. IFSC code is used while transferring the funds using RTGS andNEFT payments.

20. What do you mean by financial inclusion? In spite of vast growth in the banking system, a largenumber of poor people are still not served by any bank. They are living outside the purview ofany bank. Financial inclusion is delivery of financial services at an affordable cost to the vastpopulation of disadvantaged/low incomes sections of the society

21. What do you mean No frill accounts? No frill accounts are accounts with very low or nilminimum balance as well as charges to be opened by the banks as targeted by Reserve Bank ofIndia. KYC norms are relaxed for opening no frill accounts so that people living in rural and semiurban areas can open the accounts conveniently. Overdrafts upto Rs. 25000.00 are allowed in the nofrill accounts

22. What do you mean by narrow banking? - It is the system of banking under which the bankaccepts deposits from the public and places the funds accepted in 100 percent risk free assetswith maturity matching for its liabilities. The bank takes no risk of lending at all.

23. Who are business facilitators and business correspondents? - RBI has permitted the banks touse the services of business facilitators and correspondents with effect from 2006. The services ofnon-governmental officers, microfinance institutions and civil society organizations can beutilized by the banks. They help the banks in identifying the borrowers processing theirapplications etc. without involving in business transactions. No approval of RBI is necessary.Correspondents will do all the above and will also participate in business transactions in a small way.

24. What do you mean by non performing assets? - Non performing assets means bad loans.When the principal and interest in the account becomes overdue for more than 90 days, it istreated as non performing assets. Non performance assets are classified into sub standard assets,doubtful assets and loss assets. Banks are willing to keep the level of non performance accounts atthe lowest.

25. What do you mean by priority sector advance? - In order to boost development of agricultureand industries, Government of India has stipulated certain norms under which banks are in aposition to allocate 40 percent of their advances exclusively to certain categories of borrowerscalled as priority sector advances. The following are classified into priority sector advances namely

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- retail traders, small business, professional and self employed; agriculture; small scaleindustries, self help groups, differential rate of interest and SC/ST beneficiaries

26. What do you mean by merchant banking? - Merchant banking stands for provision ofvarious services to corporate clients by helping them to access capital market. Merchantbanks help the corporate customers to approach the capital market with initial public offersfor the purpose of collection of capital by way of shares.

27. What do you mean by demat accounts? Demat means dematerialization. During the early days,shares and debentures certificates were issued in physical form in the form of certificates. Atpresent, they are issued in electronic form. It is the process by which paper securities areconverted to electronic form so that they can be stored, sold and transferred easily.

28. What is a depository? - A depository holds the securities of the investors in electronic form.In our country there are two depositories namely; NSDL - National Securities DepositoriesLimited promoted by National Stock Exchange and CDSL - Central Depository Services Limitedpromoted by Bombay Stock Exchange.

29. What do you know by consortium financing? When a corporate is in need of huge finance - sayRs. 200 crores and above, banks join together and extend the loan facilities by sharing the loanamount between themselves. This reduces the risk for each bank. The banks jointly process theapplication of the borrower and sanction the advance and this is called consortium lending.

30. What do you mean by repo rate? - It is the rate at which RBI lends short term funds to thecommercial banks against securities. In order to temporarily expand the money supply, thecentral bank decreases repo rates enabling the banks to swap the government securities for cash.Repo is the abbreviation of Repurchase and to contract the money supply RBI increases the reporates.

31. What do you mean reverse repo ? - The reverse repo rate is the interest rate that banksreceive if they deposit money with the central bank. This reverse repo rate is always lower than therepo rate. Increases or decreases in the repo and reverse repo rate have an effect on the interestrate on banking products such as loans, mortgages and savings.

32. What do you mean by CRR? - CRR means Cash Reserve Ratio and as per the stipulations byReserve Bank of India, all banks are in a position to maintain a certain percentage of theirdeposits technically called as net demand and time liabilities) in their account with the RBI. CRRranges from 5 percent to 15 percent. By increasing CRR by merely 0.25 percent, an amount of Rs.15000 crores of liquid funds can be transferred from the commercial banks to the coffers of RBI.When CRR is reduced, the liquid funds are transferred from RBI to commercial banks.

33. What do you mean by SLR? - Statutory Liquidity Ratio refers to the stipulation by RBI thatapproximately 25 percent of the banks deposits is to be kept in the form of government securities,gold and cash. Primarily SLR refers to the amount invested by the banks in Government of Indiasecurities. RBI has the right to change the statutory liquidity ratio from time to time. On reductionof SLR, the availability of funds for the banks moves up and banks tend to more loans to thecommon public. In the case of increase in SLR, banks reduce bank lending.

34. What do you mean by PLR? - Prime lending rate is the rate at which commercial banks arewilling to lend to their triple A rated No 1 borrowers. The lending rates by the bank for other

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borrowers whose credit worthiness is low will be more than prime lending rate. RBI hasderegulated the lending rates that are to be charged by the banks for advance above Rs. 2 lakhs.

35. What do you mean by BPLR? - It is the rate at which commercial banks must charge to alltheir advances less than Rs. 2 lakhs.

36. Who is a non resident Indian? - Non resident Indian is the person who is the Indian citizenwho is residing in abroad for more than 182 days and has gone for abroad for the purposesnamely; business, studies and employment.

37. What are the different types of accounts that can be opened by Non Resident Indians? - Non-resident ordinary account, Non-resident External account, FCNR account and RFC account.

38. What are the different currencies in which FCNR accounts can be opened? - FCNR accountscan be opened in the following currencies namely; US dollar, pound sterling, Euro, Australiandollar, Japanese Yen and Canadian dollar. FCNR accounts can be opened for a minimum period ofone year and maximum period of three years

39. What are the traditional functions of RBI? - The traditional functions of RBI are - issue ofcurrency, forex management, export assistance, clearing house functions, change of currency,transfer of currency, publication of statistics and other information and training in banking.

40. What are the developmental functions of RBI? - The developmental functions of RBI are -agriculture development, promotion of industrial finance, promotion of export throughrefinance, development of bill market, development and regulation of banking system.

41. What are the regulatory functions of RBI? - The regulatory functions of RBI are – qualitativecredit control, bank rate, differential rate of interest, open market operations, Maintenance ofCRR and SLR, direct action, credit authorization scheme and moral persuasion

42. What are the different types of financial institutions in our country? - The various financialinstitutions in our country are - RBI - Reserve Bank of India; SEBI - Securities and Exchange Boardof India and IRDA - Insurance Regulatory and Development Authority of India. RBI monitors thevarious banks in the country; SEBI monitors and regulates capital markets and IRDA monitors thefunctions of insurance companies.

43. What are the different types of banks in our country? - In our country the following banks areavailable - savings banks; commercial banks; industrial banks; development banks; landdevelopment banks; indigenous banks; central bank; cooperative banks; exchange banks andconsumer banks

44. What are the different types of secondary functions of any bank? - They are agency orrepresentative functions; general utility services and social development functions.

45. What do you mean by agency or representative functions of any bank? - They are collectionand payment of various items; purchase and sale of securities; trustee and executor; remittingmoney; purchase and sale of financial exchange; letter of references and other agency functions.

46. What are the general utility services offered by the banks? - They are locker facilities;business information; help in transportation of goods; acting as a referee; issuing of letters ofcredit; acting as underwriters; issue of traveler cheques; issue of gift cheques and dealing inmerchant banking activities

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47. What are the social development functions of a bank ? - They are capital formation;inducement to innovations; impact on the rate of interest; role on the development of ruralsector; helping in pushing up the demand

48. Can you name some items which are covered under negotiable instruments act? - They arepromissory notes, bills of exchanges; cheques, exchequer bills; circular notes; dividend warrants;share warrants; bearer debentures; bank notes and bank drafts

49. What is a Payment Bank? - Payment Bank is a entity which will allow you to open Savings andCurrent Account like the other Banks. However, the difference is that a Payment Bank can be yourmobile operator or supermarket chaineg. Big Bazar) or even a NBFC.

50. What Makes Payment Banks Different From Normal Banks? - Payment Banks helps thecustomer to handle cash a lot easier by providing privileages like transferring money from yourMobile Phones to any bank account or another mobile phone customer and also you can recieve themoney similar way. The added advantages are paying bills, paying at the Shopping Retailers andrecharges etc.

51. Why Payment Banks? - India has a vast growing Mobile Users Database with over 91 Crorecustomers. So basically providing the service will increase the Financial Inclusion Programme.Basically it will help the citizen a lot on the other hand it will boost up the financial inclusion.

Facts On Payment Banks

Payment Banks will give an interest to the customer's account each year similar like Banks. The only thing Payment Banks will note provide is Giving Out LOANS. The RBI has stipulated that every payments bank must have an equity capital of 100 crore to

start off and maintain a capital adequacy of 15 per cent. Apart from these, it will need tomeet cash reserve requirements and needs to invest in specific securities to meet thestatutory liquidity ratio. All these amounts are to be invested in government securities ortreasury bills. Promoter’s holding must be at least 40 per cent for the first five years, andeventually reduced to 26 per cent over 12 years.

NACHIKET MORE COMMITTEE is the officially appointed Committee which recommendedPayment Banks to increase the Financial Inclusion Programme.

Nachiket More Committee is also known as ‘Committee on Comprehensive FinancialServices for Small Businesses and Low-Income Households’.

Speculations as of 13th August, 2014 are that Western Union, Bharti Airtel, Vodafone areinterested in Payment Banks. It is said that Bharti Airtel is teaming up with State Bank ofIndia to set up Payment Banks.

History of ATMs and White Label ATMsWL -ATM/WLA

The first bank who produced ATM was HSBC in the year 1987 in Mumbai. After that ATM hasbeen installed in many places. But the problem occurred when RBI noticed that theinstallation of ATMs have not been initiated in the Rural areas of India. Although SBI or State

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Bank of India has the largest ATM network, yet the rural areas are neglected. Mainly theUrban and Developed areas had the most ATMs. You will notice more ATMs in ShoppingMalls, Movie Theatres, Sports Arena, Entertainment Parks but less in Rural areas, villages.This has affected the Financial Inclusion program.

To increase the Financial Inclusion, RBI issued guidelines for Non-Banking FinancialCompanies to set up White Label ATMs or WL-ATM.

Usually we have seen ATMs with Bank's Logo in it, making it sure that the bank has installedthe ATM in that location. But White Label ATMs does not have any Bank logo in it. It isinstalled by any Non-Banking Entity.

52. How does White Label ATM work? - It is like the outsourcing of bank's payment service. Earlierbank's had to install ATMs using their Logos and security and other maintenance staffs. But with theWhite Label ATMs banks now only need to fill the White Label ATMs with cash. Suppose a NBFCnamed XYZ Ltd. opens a White Label ATM with the name "ABC". Now they will have a bank assponsor. Suppose MNO Bank is the sponsor. So now, XYZ will install and set up their White LabelATMs and keep the maintenance staff and securities while MNO Bank will make sure the WhiteLabel ATMs are having sufficient cash. The outcome of this system is that banks now will not need toworry about maintenance and other things.

53. Do White Label ATMs charge the customer? - No, as per RBI guidelines they cannot charge thecustomers directly. However, they charge from banks and the banks charge it from Customer'saccount.

54. Summary of White Label ATM - Basically the main motive is to increase the financial inclusion.As the NBFCs has to install White Label ATMs in a ratio of 1 Urban White Label ATM is to 2 RuralWhite Label ATMs. So when they try to install 1000 White Label ATMs in a Urban Location they willhave to install 2000 White Label ATMs in the Rural Areas. It will increase the Rural participation inFinancial Inclusion.

Facts

IndiCash of Tata Communications Payment Solution LimitedTCPSL was the first White LabelATM in India.

More than 15 companies including Tata, Muthoot, Prizm Payments, Srei Infra., VakgrangeeSoftware, AGS have been given permission of White Label ATMs by Reserve Bank of India.

Any NBFC or any non-bank entity with a minimum net worth of Rs.100 crore can apply forWhite Label ATMs. However it is completely on RBI whether they will give permission or not.

The 5 transactions are free on a monthly basis but after that the White Label ATMs willcharge 15 rs per transaction and 5 rs per balance inquiry. These charges will later reflect onthe customer's bank account statement.

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BANKING AWARENESS - ExamPundit

PART I

Reserve Bank of India

01. Central bank is a bank which acts as a banker to the government; has monopoly

of note issue and controls the entire banking system

02. RBI is the central bank in India

03. RBI was established by an act of Parliament in 1934

04. The initial share capital for RBI was Rs. 5 crores

05. RBI was nationalized under (transfer of public ownership) act 1948

06. Its affairs are regulated by central board of directors

07. It has four regional centres at Mumbai, Kolkatta, Chennai and Delhi

08. The central office of the bank is at Mumbai

09. RBI is note issuing authority; banker, agent and financial adviser to the government;

custodian of cash reserves of banks; custodian of nation's reserves of foreign

exchange; lender of the last resort; controller of credit etc.

10. Currency notes other than one rupee notes are issued by RBI

11. RBI has credit control - regulation of cash reserves of commercial banks, regulating

the flow of credit, qualitative control and open market operations

12. Handles all government transactions

13. It is a banker's bank

14. It maintains the exchange rate for the Indian rupee; hold the country's reserves in

foreign currencies and administration of the exchange management regulations

Scheduled commercial banks

15. They are included in the second schedule to the RBI act, 1934

16. They can avail facilities from RBI - accommodation in the form of refinance and

loans and advances; remittance facility at concessive rates as also grant of

authorized dealer's license to handle foreign exchange business.

17. Have paid up capital and reserves - aggregate value of not less than Rs. 5 lakhs.

18. It can be a state cooperative bank or company registered under the companies act

19. Scheduled commercial banks are - State Bank of India and associates, nationalized

banks, private sector banks, regional rural banks, urban cooperative banks, state

cooperative banks

20. Scheduled Commercial Banks to maintain CRR up to 3 percent of their demand and

time liabilities which can go up to a maximum of 15 percent

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Public sector banks

21. State Bank of India and associate banks

22. Nationalized banks - 19

23. Banks were nationalized on 19.07.1969 - fourteen banks

24. Nationalised banks are: Central Bank of India, Bank of India, Bank of Baroda,

Allahabad Bank, Union Bank of India, United Commercial Bank, Indian Overseas Bank,

Indian Bank, Canara Bank, Syndicate Bank, Punjab National Bank, United Bank of

India, Dena Bank, Bank of Maharashtra, Andhra Bank, Corporation Bank, Oriental Bank

of Commerce, Punjab and Sind Bank and Vijaya Bank. (19) and Industrial Development

Bank of India = 20

Development banks

25. Industrial Finance Corporation of India is a development bank

26. Its operations are project finance, financial services and corporate advisory services

27. Industrial Investment Bank of India was set up in 1971 for rehabilitation of sick

industrial companies.

28. Reconstituted as Industrial Reconstruction Bank of India in 1985 under the IRBI act, 1984

29. IRBI was incorporated in March, 1997 as Industrial Investment Bank of India Limited

under the companies act, 1956

30. SIDBI was set up in 1990 under an act of parliament (SIDBI) act 1989 as a wholly

owned subsidiary of IDBI

31. It is the principal financial institution for promoting and financing development of

industry in the small scale sector

32. 14 banks were nationalized on 19th July 1969

New Private sector banks

33. New private sector banks were formed as per RBI guidelines 1993

34. They were registered under companies act 1956

35. They were included in second schedule to the RBI act, 1934

36. The minimum paid up capital of a new bank shall be Rs. 100 crores

37. Priority sector lending norms should be adopted by these banks

38. The banks are governed by the provisions of the RBI act, 1934, the Banking

regulation act, 1949 and other relevant statutes.

39. They are not allowed to set up a subsidiary or mutual fund for at least three years after

their establishment

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Regional Rural banks

40. Regional Rural banks were established on 2.10.1975

41. To develop rural economy by providing credit and other facilities for the

purpose of development of agriculture, trade, commerce, industry and other productive

activities in rural areas, particularly to the small and marginal farmers, agricultural

laborers, artisans and small entrepreneurs

42. They are scheduled commercial banks

43. Included in second schedule to RBI act, 1934

44. The gross NPAs of regional rural banks should not be more than 10 percent.

45. The banks should comply with the IRDA regulations for acting as a corporate agent

46. The authorized capital of a regional rural bank is Rs. 5 crore and issued/paid up capital

minimum of Rs. 25 lakhs and maximum of Rs. 100 lakhs

47. The prescribed minimum level of share holding should be 51 percent for sponsor

institutions

Local Area banks

48. Local area banks were established on 24.08.1996

49. They were set up in the private sector to cater to credit needs of the local people

and to provide efficient and competitive financial intermediation services in their area of

operation

50. They are required to observe the priority sector lending target of 40 percent of net

bank credit, as applicable to other domestic banks, out of which 25 percent shall be given

to weaker sections

51. They were registered as public limited companies as per Companies act, 1956.

52. They got licence as per Banking regulation act 1949

53. Included in the second schedule to RBI act, 1934

54. They have the minimum paid up capital of Rs. 5 crore

55. Promoters' contribution to be Rs 2 crores.

56. They can be promoted by individuals, corporate entities, trusts and societies

57. The area of operation of local area bank shall be a maximum of three

geographically contiguous districts.

58. To comply with the provisions of the Banking Regulation act, 1949, RBI act, 1934 and

other statutes

59. They are subject to prudential norms, accounting policies and other policies laid down by

RBI

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Non Banking Finance Companies

60. NBFCs consist of eight categories - each one of them conducting a particular business

activity

61. Equipment leasing company undertakes equipment leasing or the financing of such

activity

62. Hire purchase finance company is engaged in hire purchase transaction or the

financing of such transactions

63. Loan company provides finance by making loans or advances or otherwise for any

activity other than its own.

64. The main business of any investment company is the acquisition of securities and

trading in such securities to earn a profit

65. Mutual Benefit Financial Company are the companies which are notified by the

Central Government under section 620 A of the companies act 1956

66. Miscellaneous non banking company - the principal business of such company is

managing, conducting or supervising as a promoter, foreman or agent of any transaction

or arrangement by which the company enters into an agreement

67. Housing finance company - acquisition of construction of houses including the

acquisition or development of plots of land

68. Residuary non banking company - receives deposits under any scheme or arrangement

by whatever name called in one lump sum or in installments by way of

contributions or subscriptions or by sale of units or certificates or other instruments or

in any manner.

69. Effective 4.3.2003, NBFCs are not allowed to offer more than 11 percent per annum

interest on public deposit

70. No official agency guarantees or undertakes the repayment of deposits or interest

71. NBFC deposits are uninsured and not backed by security

72. They are not allowed to offer more than 2 percent brokerage

73. They are not allowed to offer gifts or incentives

74. All depositors must be issued proper receipts for deposits

75. NBFCs having track record of less than 2 years is not eligible to accept public deposits

76. NBFCs seeking public deposit should be a profit making company

Life Insurance Corporation of India

77. LIC was established in 1956 as wholly owned corporation of the Government of India

78. LIC came into being from 1.9.1956

79. To spread life insurance across the country, particularly in the rural areas and to the

socially and economically backward classes.

80. Besides insurance business, LIC in pursuance of Government of India guidelines

invests a major portion of its funds in central and state government securities and

other approved securities including special deposits with Government of India.

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81. Extends assistance to develop infrastructure facilities like housing, rural electrification,

water supply and sewerage and provides financial assistance to the corporate sector by

way of term loans, underwriting off and direct subscription to shares and debentures.

82. It also provides resource support to financial institutions through subscription to

their shares/bonds and by way of term loans.

83. UTI - the largest mutual fund organization in India was set up in 1964 by an

act of parliament.

84. Established to fulfil the objectives of mobilizing of retail savings, investing them in the

capital market and passing on the benefits accrued from the acquisition, holding,

management and disposal of securities to the small investors.

85. General Insurance Corporation of India was formed and registered on January, 1973

under the insurance act 1938 in accordance with the provisions of the General Insurance

Business (Nationalization) act, 1972

86. The New India Assurance Company Limited; The United India Insurance Company

Limited, The Oriental Insurance Company Limited and National Insurance

Company Limited are government owned insurance companies doing general insurance

business

87. Need based insurance companies to meet the diverse and emerging needs of

various segments of society and provides financial assistance to industrial projects by

way of term loans, short term loans and direct subscription to shares/debentures of

new and existing industrial enterprise.

National Bank for agriculture and Rural Development

88. NABARD was established in 1982 under an act of parliament

89. It is the apex development bank for promotion and development bank for promotion

and development of agriculture, small scale industries, cottage and village industries,

handicrafts and other rural crafts and other allied economic activities in rural areas

90. It serves as an apex financing agency for the institutions providing investment and

production credit for promoting the various developmental activities in rural areas

01. 91. Takes measures towards institution building for improving absorptive capacity of

the credit delivery system, including monitoring, formulation of rehabilitation

schemes, restricting of credit institutions, training of personnel etc.

91. Coordinates the rural financing activities of all institutions engaged in developmental

work at the field level and maintains liaison with Government of India, state

governments, RBI and other national level institutions concerned with policy

formulation

Export and Import Bank of India

92. Export and Import Bank of India - EXIM bank was established in 1982

93. Public sector financial institution created by an act of Parliament vide - the Export and

Import Bank of India act 1981.

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94. Principal financial institution for - financing, facilitating and promoting India's foreign

trade

95. They provide Indian exporters with investment loans, export product development

loans, loans for export marketing, pre shipment credit, suppliers credit for exports or

projects and advisory services.

96. Equity finance available for acquiring of setting up companies abroad for

manufacturing, marketing, trading etc.

97. It offers buyers credit and lines of credit to foreign governments and banks

98. It has facilities to provide advance information and business advisory services to

Indian exporters in respect of multilaterally funded projects overseas.

99. It offers advisory and information services to exporters and sponsors

PART II

01. EXIM bank operates various lending programs for promotion of exports of engineering

and capital goods and related services from India

02. EXIM - Direct financial assistance to exporters of plant, equipment, machinery and

related services in the form of medium term credit

03. EXIM -Overseas investment finance to Indian promoters of overseas joint ventures to

support their equity investments.

04. EXIM - Overseas buyers' credit to foreign importers for import of Indian capital goods and

related services

05. National Housing bank was established on 9.7.1988

06. Vide National housing bank act, 1987 to function as a principal agency to promote

housing finance institutions and to provide financial and other support to such

institutions.

07. NHB - issues directions to housing finance institutions to ensure their growth on sound

lines

08. Make loans and advances and render any other form of financial assistance to

scheduled banks and housing finance institutions or to any authority established by or

under any central, state or provincial act and engaged in slum improvement

09. Formulate schemes for the purpose of mobilization of resources and extension of credit

for housing.

10. Banks can accept both demand and time deposits from the public

11. Interest payable on savings bank accounts is not regulated by Reserve Bank of India

12. RBI is the sole authority to issue and manage currency in India

13. 13. Accounts are allowed to be operated by cheques in respect of both savings

bank accounts and current accounts

14. Normally no interest is paid on current deposit accounts

15. The usual deposit schemes of the banks are current accounts, savings bank accounts and

term deposit accounts

16. Fixed deposits and recurring deposits are repayable after an agreed period

17. Financial inclusion means provision of financial services namely, payments, remittances,

savings, loans and insurance at affordable cost to persons not yet given the same

18. Sale of insurance policy to a depositor is known as cross selling by banks

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19. When a bank returns a cheque unpaid, it is called as dishonor of the cheque

20. Mortgage is a security on immovable property for a deposit received by a bank

21. Accounts in which shares of various companies are traded in electronic form is called as

demat accounts

22. NABARD has sought an emergency fund of Rs. 1000 crore from banks to tackle acute

liquidity crisis, which is coming in the way to give loans to micro borrowers

23. Distribution of insurance products and insurance policies by the banks as corporate

agencies is known as bank assurance

24. The term L denote "Liquidity" in term "LAF" as referred every now and then in relation

to monetary policy of RBI - liquidity

25. The full form of FINO - a term frequently used in newspapers is called as –

Financial Information Network and Operation Limited

26. The rate of inflation increases when the purchasing power of money decreases

27. Interest on savings bank account is now calculated by banks on daily product basis

28. A centralized data base with online connectivity to branches through internet as well as

ATM network which has been adopted by almost all major banks of the country is known

as core banking

29. Treasury bills, commercial paper, certificate of deposit, shares and bonds are called as

money market instruments

30. Repurchase agreement is not money market instrument

31. With a view to facilitate payment of balance in the deposit account to the person

named by the depositor without any hassles in the event of death of the account

holder, the following facility has been introduced for bank accounts in our country -

nomination

32. Banks in our country normally publicize that additional interest rate is allowed on

retail domestic term deposits of - senior citizens

33. CRR - cash reserve ratio

34. SLR - statutory reserve ratio

35. EXIM bank - export and import bank of India

36. NABARD - National Bank for Agriculture and Rural development

37. SIDBI - small industries development bank of India

38. EDP - entrepreneurship development programme

39. SMERA - SME rating agency of India Limited

40. NBFC - Non banking finance companies

41. NEFT - National electronic funds transfer

42. RTGS - real time gross settlement

43. Narrow banking is a system of banking under which a bank places its funds only in

100 percent risk free assets with maturity matching for its liabilities.

44. NPA - non performing assets

45. CAR means capital adequacy ratio

46. KYC means know your customer guidelines

47. IPO - Initial public offer

48. QIB - qualified institutional buyers

49. SEBI - securities and exchange board of India

50. MICR - magnetic ink character recognition

51. NSE - national stock exchange

52. BCSBI - Banking codes and standards board of India

53. FEDAI - Foreign exchange dealers association of India

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54. ALCO - asset liability committee

55. ALM - asset liability management

56. FCNR - foreign currency non resident deposit accounts

57. CDRS - Corporate debt restructuring

58. IDRBT - Institute for development and research of banking technology

59. YTM - yield to maturity

60. IRDA - Insurance Regulatory and Development Authority of India

PART III

01. The bank branches which can undertake foreign exchange business directly are

known as approved dealers in foreign exchange

02. Insurance cover for bank deposits in the country is provided by DICGC

03. Deposit Insurance and Credit Guarantee Corporation of India Limited is called as DICGC

04. The financial literacy includes the following namely; how to invest the funds; how to

use the limited funds carefully; how to minimize the risks and how to reinvest the money

earned

05. The loans of very small amounts given to low income group is called as - Micro credit

06. When a banker talks about CDR, CDR is meant - Corporate Debt Restructuring.

07. ALM is called as Asset Liability Management

08. Cash Reserve Ratio and Statutory Liquidity Ratio are terms most closely related to

the following industries/markets - Banking industry

01. 09. CRR and SLR are not related to capital market, commodities market, money

market and mutual fund industry

09. The letter "L" available in the term LAF commonly used in financial/economic news is

called as- Liquidity

10. LAF means liquidity adjustment facility

11. The banking ombudsman resolves the complaints of the customers in regard to

services provided by the banks

12. Public sector bank, foreign bank, private sector bank and regional rural bank are

classified as commercial banks

13. Urban cooperative bank is not a commercial bank

14. SEBI means Securities and Exchange Board of India.

15. Money laundering means - the process of conversion of money obtained illegally to

appear to have originated from legitimate sources

16. Monetary policy as an arm of the economic policy is administered by - Reserve Bank of

India

17. The following is not a primary function of a bank - Facilitating import of goods

18. The following are the functions of banks - accepting deposits; granting loans;

collecting cheques; issuing drafts; selling gold/silver coins

19. The following represent the correct meaning of Repo rate - Rate for borrowing rupees

by banks from RBI

20. The reserves which can act as a liquidity buffer for commercial banks during crisis times

are CRR and SLR

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21. Savings bank accounts are opened by individuals for savings purposes

22. A customer drawing a cheque on a bank has the right to stop payment of the cheque

before it is paid

23. The following are the functions of a commercial bank namely; providing project

finance; settlement of payments on behalf of the customers; issuing credit and debit

cards to the customers and providing services such as locker facilities and remittances

24. Commercial banks do not undertake the following functions: deciding policy rates like

CRR, SLR and repo rates

25. Reserve Bank of India undertakes the following rates: CRR; SLR and repo rates

26. The conversion of money which is illegally obtained is called as - money laundering

27. For purchase of white goods, the following loan is granted by the banks -

consumer durables loan

28. A cheque which has completed the stipulated validity period of the cheque is called as

- stale cheque (The validity period is 3 months as at present)

29. Ganesh has been nominated in the savings bank account of Vijaya and Ganesh

requests the bank authorities to allow him to operate Vijaya's account as she is found

to be unwell. What will the bank do? - As nomination will come into effect only after

the death of the depositor, the bank will not permit

30. The following is a measure taken by RBI in order to control inflation in the country -

raising of Repo and Reverse Repo rates.

31. What do you understand by the term called as mortgage ?- Making the security of

immovable property available as a cover for a home loan availed by the borrower

32. The following constitutes the largest percentage of retail loans in the country - Home

loans

33. The credit risk to the bank is high from which of these cards - Credit cards

34. Depreciation of an asset does not occur on account of the following namely; fire in

the unit; theft; labour trouble; wear and tear;

35. The following are the sources of finance for any commercial bank - capital, borrowings

from RBI, deposits and cash reserves with RBI

36. Call money borrowings - is not the source of finance for any commercial bank

37. The rate at which the domestic currency can be converted into foreign currency and vice

versa is known as the - exchange rate

38. ARCIL - is the asset reconstruction company

39. IRDA - Insurance Regulatory Development Authority

40. BCSBI - Banking Codes and Standards Board of India

41. CIBIL - Credit Information Bureau of India Limited

42. Exchange rate is the term used in the field of economics

43. The non performing assets of any bank are called as - sub standard assets, doubtful

assets and loss assets

44. The performing assets of any bank are called as - standard assets

45. The crossing on a cheque can be cancelled by the drawer of the cheque under his

full signature

46. Banks can accept both demand and time deposits from the public

47. Interest payable on savings bank is not regulated by RBI

48. The usual deposit accounts of the banks are - current accounts, savings accounts and

term deposit accounts

49. The fixed deposits, reinvestment deposits and recurring deposits are repayable

after an agreed period.

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PART IV

01. Accounts are allowed to be operated by cheques in respect of current and savings

accounts

02. Interest is not paid in current accounts

03. Mortgage is a security on immovable property for loan given by the bank

04. Financial inclusion means provision of - financial services namely; payments,

remittances, savings, loans and insurance at affordable cost to persons not yet given the

same

05. When a bank returns a cheque unpaid, it is called as - dishonor of the cheque

06. Demat accounts are accounts in which the shares of various companies are traded

in electronic form

07. NEFT means - National Electronic Funds Transfer

08. No upper limit has been prescribed for RTGS

09. RTGS means - Real Time Gross Settlement

10. 10. Distribution of insurance products and insurance policies by banks as corporate

agents is known as - bank assurance

11. Interest on savings bank account is now calculated by the banks on daily product basis

12. Government of India is the largest shareholder (in percentage shareholding) of a

nationalized bank

13. Banks in the country normally publicise that additional interest rate is allowed in

retail domestic term deposits held by- senior citizens

14. A centralized database with online connectivity to branches, internet as well as ATM

network which has been adopted by almost all major banks of the country is

known as - core banking

15. Commercial paper is not considered as the money market instrument

16. With a view to facilitate payment of balance in the deposit account to the person

named by the depositor without any hassles in the event of death of the account

holder, the following facility was introduced for bank accounts in the country -

Nomination

17. ATM cards are issued to a person who maintains any of the following accounts namely

-savings bank accounts and current accounts

18. ATM is a computer which is dedicated to perform certain specific jobs only

19. ATM is a user friendly machine and the customer does not require any training for using it

20. ATM is totally menu driven which displays instructions to the customer step by

step for operating the same

21. A working group on cheque truncation and E-cheques was constituted by RBI under

the chairmanship of Dr. R.B. Barman and major recommendations of group include -

the physical cheque will be truncated within the presenting bank; settlement will be

generated on the basis of current MICR code line data and electronic images will be used

for payment processing

22. RTGS benefits the customer and the bank

23. RTGS means a payment system in which - both processing and final settlement of funds

transfer instructions can take place continuously

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24. RBI in regard to RTGS has decided that - RTGS would be accessible to all retail customers

and there would be no floor ceiling for routing the transactions through RTGS and

settlement of transactions.

25. State Bank of India is considered to be the first bank to launch a mutual fund

26. In commercial paper the following parties can invest - individuals, banking companies

and corporate bodies registered or incorporated in the county and unincorporated

bodies, Non Resident Indians and foreign Institutional Investors.

27. The commercial paper may be issued in multiples of Rs. 5 lakhs subject to the minimum

size of an issue to a single investor being - Rs. 5 lakhs

28. Commercial paper may be issued for period ranging from seven days to one year

29. Commercial paper is essentially - unsecured money market instrument

30. Social control was imposed on commercial banks effective from - 1st February, 1969

31. Fourteen major Indian banks having deposits of more than Rs. 50 crores were

nationalized on 19.07.1969

32. 32. With effect from 19.07.1969, the fourteen major Indian banks were nationalized

by the Government of India under - the banking companies (acquisition and

transfer of undertakings) act 1970

33. 33. Effective from 15.04.1980, six banks with demand and time liabilities exceeding

Rs. 200

34. crores were nationalized

35. 34. In the wake of Narasimhan committee recommendations the banks which

entered into the capital markets - State Bank of India, Oriental Bank of Commerce and

Bank of India.

36. In the wake of Narasimhan Committee recommendations, the financial sector reforms

were implemented by the government of India

37. 36. Financial sector reforms aim towards introduction of capital adequacy norms,

based upon capital to risk weighted asset ratios; prudential norms relating to

classification of assets, income recognition and provisioning; setting up of a strong

supervisory and surveillance mechanism for the banking system and financial sector

through the Board for financial supervision in RBI

38. According to Hilton Young Commission, the RBI act, 1934 was enacted

39. The Banking Commission was appointed by the Government of India in January, 1969

under the chairmanship of R.G. Saraiya

40. In order to study the functioning of Public Sector banks, James Raj Committee was

appointed

41. Kamath working group was appointed to study the problems arising out of the

adoption of multi agency in agricultural banking

42. The banking laws committee was headed by - P.V. Rajamannar

43. The National Credit Council which symbolized the role of credit planning in

development was set up in the year - 1968

44. During the year-1966, RBI set up the All India Rural Credit Review Committee in order

to - reassess the developments that have taken place in the field of rural credit since 1954,

that is subsequent to submission of the report of the All India Rural Credit Survey

Commission

45. Talwar committee submitted its report in the year 1977

46. Talwar committee was appointed by Government of India to - submit

recommendations on customer service on banks

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47. In order to review the existing system of inspection of banks by RBI, Pendarkar

working group was appointed

48. 47. Under the chairmanship of H.N. Sinor, the working group to examine

various issues concerning the deposit rates including floating rate of interest on

fixed deposits was constituted by RBI

49. RBI had constituted the working group on flow of credit to SSI sector under the

chairmainship of A.S. Ganguly

50. The Joint stock banking system started in the late 18th century/early 19th century

51. The Bank of Bengal got its charter in 1809

PART V

01. The first bank in India was set up on modern lines in 1770 by an agency house

02. Bombay stock exchange was made functional as early as 1870

03. The first life insurance company in the country - Oriental Life Insurance company

04. Oriental Life insurance company was established in 1818

05. First General (non life) Insurance company was set up in 1850

06. There were 566 private commercial banks in the country with 4151 branches in 1951

07. There are 32 foreign banks in the country

08. Foreign banks have around 310 branches all over the country

09. The Unit trust of India came into existence in 1964

10. Export Risk Insurance Corporation was set up in July 1957

11. Export Risk Insurance Corporation was converted as ECGC in January 1964

12. ECGC - Export Credit Guarantee Corporation

13. The deposit insurance corporation was set up in 1962

14. The fourteen banks which were nationalized on 19.7.1969 were - Central Bank of India;

Bank of Maharashtra; Dena Bank; Punjab National Bank; Syndicate Bank; Canara

Bank; Indian Bank; Indian Overseas Bank; Bank of Baroda; Union Bank; Allahabad

Bank; United Bank of India; United Commercial Bank and Bank of India

15. Six banks were nationalized during the second stage on 15.4.1980

16. Regional Rural Banks were set up in 1975

17. NABARD was established in 1982

18. NABARD - National Bank for Agriculture and Rural Development

19. Securities and Exchange Board of India was established in 1988

20. Licensing for new private sector banks was issued in 1993

21. Indian financial system is composed of three components - financial assets, financial

markets and financial intermediaries or institutions

22. Financial assets are classified into primary or direct securities and secondary or

indirect securities

23. Financial markets can be classified into money market and capital market

24. Financial intermediaries can be classified into organized and unorganized

25. Organized financial intermediaries can be classified into banking institutions and non

banking financial institutions

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26. Primary securities are those securities which represent financial claims against real

sectors

27. Real sectors represent bills, bonds, shares, book debts etc.

28. National savings certificates, infrastructure bonds, Indira Vikas Patras, Krishi Vikas

Patra etc. are examples of financial assets

29. Money market is the center of dealings mainly of short term character in monetary assets

30. The capital market deals in long term funds, both debt and equity

31. Financial instruments of the capital market are classified into the following two

categories namely; government or gilt edged securities and corporate securities

32. The main financial instruments of corporate sector are - shares, debentures, public

deposits and loan from institutions

33. Banking commission was established in 1972

34. Capital market is a market which deals in long term funds

35. Regional Rural Banks fall within supervisory purview of RBI

36. IRDA is the regulatory authority for all insurance companies in the country including

LIC of India

37. IRDA has its headquarters at Hyderabad

38. Mutual funds fall within the supervisory purview of SEBI

39. Export and Import Bank of India does not fall within the purview of development banks

40. State Bank of India was formulated as per SBI act 1955

41. ICICI Bank Limited is the first Universal Bank established in the country

42. New Bank of India merged with Punjab National Bank

43. The central monetary authority of the country is Reserve Bank of India

44. Scheduled commercial banks are banks which have been included in the second

schedule of RBI act, 1934; registered under companies act and got licence as per

Banking Regulations act 1949

45. When the banks entertain in dealing with insurance business, it is called as bankassurance

46. Universal banking is the roof under which various banking products are available

47. When the repayment period of any loan is upto 36 months, the loan is called as short

term loan

48. When the repayment period is between 37 to 84 months, such loans are called as

medium term loans

49. When the repayment period is more than 84 months, they are called as long term loans

50. In the case of Regional Rural Banks, the contribution structure between Government of

India, State Government and Sponsoring banks are in the ratio of 50:15:35

PART VI

01. Laxmi Commercial Bank merged with Canara Bank

02. CAMEL denotes - capital adequacy, asset quality, management, efficiency and liquidity

03. Banks are subject to operational risk, credit risk, market risk, liquidity risk

04. When the ATM machine installed in the bank is out of order, it is called as operational risk

05. When the computers are not functioning, it is called as operational risk

06. When the loans are not repaid in time, it is called as credit risk

07. When the banks products fail to survive in the market, it is called market risk

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08. When the banks are not able to pay the amount to the depositors, it is called as liquidity

risk

09. IFSC code denotes the branch code of any bank

10. IFSC code consists of eleven digits

11. Tissue culture denotes propagation of cells

12. Aqua culture denotes shrimp farming and fish production

13. Horticulture means fruit production

14. Sericulture means silk production

15. Pisciculture means fish farming

16. Apiculture means honeybee rearing

17. Sylvi culture means cultivation of fodder crops

18. Moriculture means cultivation of mulberry

19. Olericulture means vegetable cultivation

20. Increase in agriculture production is called as green revolution

21. When the activity relates to milk production, it is called as white revolution

22. When the activity relates to meat production, it is called as red revolution

23. When the activity relates to cocoa production, it is called as brown revolution

24. When the activity relates to rubber production, it is called as black revolution

25. When the activity relates to fish farming, it is called as blue revolution

26. When the activity relates to cultivation of oil seeds and pulse production, it is called as

yellow revolution

27. When the activity relates to flower production, it is called as rainbow revolution

28. Marginal farmer is one who has irrigated lands less than 1.25 acres or non irrigated

lands less than 2.5 acres

29. Small farmer is one who has irrigated lands less than 2.50 acres or non irrigated lands

less than 5.00 acres

30. Agricultural laborer is one whose 50 percent of income is from agriculture

31. The old private sector banks in the country are: City Union Bank, Tamilnadu Mercantile

Bank, SBI commercial Bank, Catholic Syrian Bank, Dhanalakshmi Bank, Federal Bank,

Jammu and Kashmir Bank, Karnataka Bank, Karur Vysya Bank, Lakshmi Vilas Bank,

Nainital Bank, Ratnakar Bank, South Indian Bank Limited, ING Vysya Bank Limited

32. The new private sector banks in the country are: Axis Bank, Development credit bank,

HDFC Bank, ICICI Bank, Indus Ind Bank, Kotak Mahindra Bank, Yes Bank

33. The subsidiaries of State Bank of India are; State Bank of Patiala; State Bank of

Hyderabad; State Bank of Travancore; State Bank of Bikaneer and Jaipur and State Bank of

Mysore.

34. Oriental Bank of Commerce has taken over Global Trust Bank

35. For charging interest on loans/advances from July 2010, RBI introduced the following

system namely; Base lending rate system in the place of Benchmark Prime Lending Rate

system

36. Money laundering refers to conversion of money which is legally obtained

37. The account in which trading of shares in their electronic form is called as DEMAT account

38. Reserve Bank of India issues all the currency notes except one rupee note

39. RBI does not transact the business of the following state government namely - Jammu

and Kashmir

40. The first Indian bank to open a branch outside India in London in 1946 is Bank of India

41. NRI deposits are called as hot money

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42. Euro Bond is an instrument issued in a country other than the country of the currency of

the bond

43. National Income Estimates in India are prepared by Central Statistics Commission

44. Full convertibility of a rupee means determination of rate of exchange between rupee

and foreign currencies freely by the market forces of demand and supply

45. RBI has prescribed that all scheduled commercial banks should maintain their SLRs in

dated securities notified by RBI; treasury bills of Government of India and State

Development Loans

46. The following category of banks were mooted with a view to providing an

Institutional mechanism for promoting rural and semi urban savings as well as for the

provision of credit for viable economic activities in local areas - Local area banks in the

private sector

47. LAB means local area banks

48. The first Private bank in India to receive an in principle approval from Reserve Bank of

India was Housing Development Finance Corporation Limited

49. The actual return of an investor is reduced sometimes as the prices of the commodities

go up all of a sudden. In financial sector, this type of phenomenon is known as - market

risk

PART VII

01. Banking regulation act, 1949 does not at all apply to - primary agricultural credit societies

and cooperative land mortgage banks

02. As per the provisions of section 12 of the Banking Regulations act, 1949, the minimum

ratio between the authorized, subscribed and paid up capital of a banking company

should be 4:2:1

03. Under the provisions of section 35(b) (ii) of the Banking Regulation Act, 1949,

inspection of branches of Indian banks situated abroad is to be carried out by - RBI

04. The first public sector bank to issue capital to public is - Oriental Bank of Commerce

05. The New Private Sector Banks have been authorized to be set up under the new

liberalization policy and the minimum paid up capital should be - Rs. 200 Crore

06. The Banking Companies act, 1949 was enacted to consolidate and amend the law

relating to banking companies with effect from 1.3.1966 and the name of the act has

been changed to - The banking regulation act

07. The management of SEBI consists of - chairman and five members

08. The following is the reason for the success of mutual fund - mutual fund scheme offers

to every investor security, steady growth, regular income and easy liquidity; a small

investor gets the professional expertise of the fund managers of the mutual fund and

it carries tax breaks and this benefit is passed on to the investor

09. The individual investor can claim tax exemption for both principal amount and income

from these units under - Sec 80 E of the information technology act

10. The main objectives of special electronic fund transfer scheme - SEFT - it is safe;

secure and same day electronic interbank transfer of funds across the country

11. Treasury bill is - negotiable security

12. RBI functions as the agent of the central government issues - treasury bills

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13. The treasury bills are issued at a - discount

14. NABARD extends refinance to - State Land Development Banks, State Cooperative

Banks; Regional Rural Banks and Commercial Banks and other financial institutions

approved by RBI

15. Automatic refinance scheme is available to the persons financed under - the scheme of

setting up of agriclinic and agribusiness centers; rural non farm sector (investment credit)

upto Rs. 15 lakhs and composite loan scheme

16. The objectives and functions of IDBI include - to provide technical and

administrative assistance for promotion or expansion of industry; to undertake

market and investment research and survey technical and economic studies in

connection with development of industry and to act as lender of last resort and to

finance projects that are in conformity with national priorities

17. For availing refinance from IDBI - the industrial unit should not be SSI;

promoter's contribution should be 25% of project cost and debt equity ratio should not be

more than 2:1

18. Central Cooperative Banks - serve as the connecting links between State Cooperative

Banks and Primary Credit Societies; finance the primary credit societies which balance

the excess and deficiency in their resources but do little commercial banking and

are closer to the primary societies than an apex bank

19. The primary function of a central cooperative bank is - to mobilize the resources in the

district for financing its members; to channelize the flow of funds from the state

cooperative banks and to mobilize deposit from state government

20. Diversification refers to entering into attractive opportunities.

21. Diversification means the activities outside the existing businesses of the firm

22. 22. The various types of diversification generally observed by the business -

concentric diversification, horizontal diversification and conglomerate diversification

23. The world over most of the supervisory authorities have adopted the following as the

basis of assessment of capital adequacy - risk assets ratio system

24. 24. The committee on Banking and Regulations and Supervisory practices which

released the agreed frame work on international convergence of capital measures and

capital standards in July, 1988 is popularly known as - Basle committee

25. Basle committee adopted weighted risk assets approach which assigns weights to -

on balance sheet exposure of a bank and off balance sheet exposure of a bank

26. CBS - Core Banking Solution

27. The benefits of Core Banking Solutions - benefit of not carrying the cash from one

place to another; depositing money anywhere in the country where the bank is present

and instant updating of the accounts

28. Network can be defined as - a system of communication between various computers used

by different users.

29. Retail banking refers to provision of the basic services of a bank to the individuals

30. The following are categorized under retail banking - personal loans to individuals;

vehicle loans; home loans and credit cards

31. The reduction in the SLR by RBI - will augment the resources of scheduled commercial

banks

32. Under sections 20, 21 and 21A of the RBI act, 1934, RBI manages the public debt and

issues new loans on behalf of the central and state governments

33. Social control of banks was introduced during the year - 1967

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34. The following form the part of general insurance - fire, burglary, theft, marine,

household, vehicles etc

35. FDMA means - Frequency Division Multiple Access

36. Full form of ERNET - Educational and Research Network

37. Application of VSAT in bank is - inter branch reconciliation; funds and securities

movement; payment system and monitoring and MIS reporting

38. The various facilities offered by banks through tele banking - balance enquiry; enquiry

about collection or specific credit/debit transactions; transfer of funds and request for

statement of accounts etc.

39. Home banking refers to - how banking is an extended version of tele banking; in

home banking the customer is able to access his bank account from his home for

availing a variety of services which is made available and home banking is availed

through the customer's personal computer attached to a telephone line and modem.

40. For availing home banking facility, a client should have the following - personal

computer, modem and telephone line

41. The functions of IRDA - it has the power to specify the code of conduct for surveyors and

loss assessors; it has power to regulate investment of funds by insurance companies; it

has power to supervise the functioning of tariff advisory committee and it has the

duty to regulate, promote and ensure orderly growth of the insurance and re-insurance

business in the country

42. 42. The compelling reasons for bank nationalization are - concentration of which and

economic power in the hands of industrialists and businessmen; branch expansion

was confined to urban areas and rural areas were being neglected; sectors like

agriculture, small scale industries and the other deserving sectors were outside the

purview of bank lending operations and various malpractices indulged in by banks

under private ownership

43. Regional Rural Banks are allowed to pay half per cent additional interest on savings

accounts and time deposits less than three years

44. The regulatory authority for Regional Rural Banks is RBI and NABARD

45. Bank rate means the standard rate at which the RBI is prepared to buy or rediscount

bills of exchange and other commercial paper eligible for purchase under the RBI act

1934

46. When RBI desires to restrict expansion of credit it raises the bank rate

47. In periods of depression, when the Reserve Bank of India desires to encourage the

banking system to create more credit, it reduces the bank rate

48. Sub section 12 AB of system 17 of the RBI act, 1934 defines the term: Repo

49. Repo is an instrument for borrowing the funds by selling securities of the central

government or a state government or of such securities of a local authority as may be

specified in this behalf by the central government or foreign securities, with an

agreement to repurchase the said securities on a mutually agreed future date at an

agreed price which includes interest for the funds borrowed

50. Sub section 12AB of section 17 of the RBI act 1934 defines the term - Reverse repo rate

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PART VIII

BANKING TERMS - ABBREVIATIONS

01. ISCI - International Standard Industrial Classification

02. KCC - Kisan Credit Card

03. KVIC - Khadi and Village Industries Corporation

04. KYC - Know your customer

05. LAMPS - Large Sized Adivasi Multipurpose societies

06. LERMS - Liberalised Exchange Rate Management System

07. LIC - Life Insurance Corporation of India

08. MCA - Ministry of Company affairs

09. MIS - Management Information System

10. MICR - Magnetic Ink Character Recognition

11. NABARD - National Bank for Agriculture and Rural Development

12. NBFC - Non Banking Finance Companies

13. NEFT - National Electronic Funds Transfer

14. NPA - Non Performing assets

15. NRE - Non Resident External account

16. NRI - Non Resident Indian

17. NSE - National Stock Exchange

18. OLTAS - Online tax accounting system

19. OMO - Open market operations

20. PACS - Primary Agricultural Credit Societies

21. PDO - Public Debt Office

22. PIN - Personal Identification Number

23. QIB - Qualified Institutional Buyers

24. RBI - Reserve Bank of India

25. RDBMS - Relational Database Management System

26. REC - Rural Electrification Corporation

27. RFC - Resident Foreign Currency

28. RIDF - Rural Infrastructure Development Fund

29. RRB - Regional Rural Bank

30. RTGS - Real Time Gross Settlement

31. RWA - Risk Weighted Assets

32. SBI - State Bank of India

33. SCB - Scheduled Commercial Bank

34. SDR - Special Drawing Rights

35. SEBI - Securities and Exchange Board of India

36. SFMS - Structured Financial Messaging Services

37. SHG - Self Help Group

38. SIDBI - Small Industries Development Bank of India

39. SIDC - State Industrial Development Corporation

40. SJSRY -Swarna Jayanthi Shahari Rozgar Yojana

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41. SLR - Statutory Liquidity Ratio

42. SLRS - Scheme for Liberation and Rehabilitation of Scavangers

43. SMERA - SME rating agency of India Limited

44. SSI - Small Scale Industries

45. SME - Small and Medium Industries

46. SSSBE - Small Scale Service and Business Enterprises

47. UTI - Unit Trust of India

48. WPI - Wholesale Price Index

49. YTM - Yield to maturity

50. LAB - Local Area Banks

BANKING TERMS - ABBREVIATIONS

01. ALM - Asset Liability Management

02. ANBC - Adjusted Net Bank Credit

03. ASBA - Applications supported Bank accounts

04. BOE - Bill of Exchange

05. CASA - Current and savings accounts

06. CBLO - Collateralised Bank Lending Obligations

07. CIBIL - Credit Information Bureau of India Limited

08. DPG - Deferred Payment Guarantee

09. DPN - Demand Promissory Note

10. DRAT - Debt Recovery Appellate tribunal

11. DRI - Differential Rate of Interest

12. DSCR - Debt Service Coverage Ratio

13. EDI - Electronic Data Interchange

14. EMI - Equated Monthly Instalments

15. EPS - Earnings Per Share

16. ESOP - Employee Stock Options

17. FEDAI - Foreign Exchange Dealers Association of India

18. FFMC - Full Fledged Money Changers

19. FOB - Free on Board

20. LIBOR - London Inter Bank Operations Rate

21. MIBOR - Mumbai Inter Bank Operations Rate

22. MOU - Memorandum of Understanding

23. MCA - Ministry of Company Affairs

24. NPV - Net Present Value

25. OCB - Overseas Corporate Bodies

26. POA - Power of Attorney

27. RKBY - Rashtriya Krishi Bima Yojana

28. SEBI - Securities and Exchange Board of India

29. LAF - Liquidity Adjustment Facility

30. IDBI - Industrial Development Bank of India

31. BCSBI - Banking Codes and Standards Board of India

32. IRDA - Insurance Regulatory Development Authority

33. DICGC - Deposit Insurance and Credit Guarantee Corporation

34. SPV - Special Purpose Vehicle

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35. CRISIL - Credit Rating Information Services of India Limited

36. ICRA - Investment Information and Credit Rating Agency of India Limited

37. CARE - Credit Analysis and Research Limited

38. MCX - Multi Commodity Exchange

39. CCIL - Clearing Corporation of India Limited

40. OTCEI - Over the Counter Exchange of India

41. EFT - Electronic Funds Transfer

42. ARF - Asset Reconstruction Fund

43. MSS - Market Stabilisation Scheme

44. CRAR - Capital to Risk Assets Ratio

45. FSDC - Financial Stability and Development Council

46. SCARDB - State Cooperative Agriculture and Rural Development Banks

47. LERMS - Liberalised Exchange Rate Management System

48. BOT - Balance of Trade

49. CAC - Capital account convertibility

50. NDS - Negotiated Dealing System

PART IX

01. Arbitrate is the practice of switching short term funds from one investment to another

in order to obtain the best returns. Also the act of buying all the lower price and reselling

at the higher price

02. Arbitration is referring a dispute to a third, unbiased party for settlement.

03. Bench marking is a management methodology based on the principle that an efficient

practice in one industry should be applicable to other industries

04. Base period is the time period used as the base from which to calculate an index

number or a growth rate

05. Black economy is that part ofa country's economic activity which is next recorded in the

national income accounts; although it does involve the production of goods and services

06. Black market is a secret sale of goods or currency violating government rules related to

pricing, quota, rationing, property, welfare etc.

07. Black nationalism is a movement advocating the establishment of a separate black

nation with the United States

08. Botttom line is the most important tact in a situation

09. Brain storming is the technique used for idea generation in which a team of persons

put forward new ideas freely and spontaneously

10. Brainwashing is the technique of changing a person's ideas, beliefs and attitudes by

force, ranging from physical torture to psychological pressure

11. Branch loyalty is the repeated purchase of a particular branch of a product by the

combination of quality and price

12. Bullion means gold, silver or other precious metals in bulk; i.e. in the form of ingots or bars

rather than in coin

13. Capitation fee is the money arbitrarily collected by professional colleges and self financing

educational institutions for admitting students to their courses

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14. Collateral is the money or property which is used as a guarantee that someone will repay

a loan

15. Communication gap is a situation in the process of communication when no

meaningful exchange of ideas or information takes place. This may be due to the physical

or mental differences between the parties involved in the communication

16. Credit is granting the use or possession of goods and services without immediate payment.

17. Curtain raiser is a journalistic term to denote background stories and features of a

forthcoming event published in order to create enthusiasm

18. Cybernetics is the study of communication and control of machines and animals.

Norbert

19. Weiner, an American mathematician introduced the term cybernetics in 1948

20. Dear money mean high rates of interest and a dear money policy carried out by a

monetary authority would be one of restricting the money supply in the interest of

reducing inflation

21. Devaluation is the reduction of the official rate at which one currency is exchanged

for another

22. Disposable income is the personal income including transfer payment after all direct

taxes have been deducted

23. Drug holiday is a medical term denoting the discontinuance of a drug for limited period

of time for evaluating the effect or side effect

24. Dry dock is a dock in which a ship can lie out of water for repairing the parts below its

waterline

25. Dry farming is the process of growing crops in semi and regions without irrigation and

sufficient rainfall

26. Dumping is the sale of a commodity on a foreign market at a price below marginal cost

27. Embezzlement is the offence committed when someone entrusted with another's money

or property illegally takes it for personal use. It is different from robbery

28. Embossing is the process by which a raised design is stamped or pressed on the surface of

materials like metal, leather, wood, paper etc.

29. E publishing is the production and distribution of different media products in digital

format

30. Floor crossing is changing one's allegiance from one party to another especially in

legislatures. The expression originated in the context that in most of the legislatures the

ruling party and opposition sit facing each other in the floor of the house

31. Flow chart is a diagram which shows the sequence of steps to be followed for solving

a particular problem, usually in algorithm

32. Free lunch is something that costs nothing. The expression comes from the old practice of

offering free lunches to those who brought drinks. This is often used in negative

constructions

33. Fringe benefits mean the rewards for employment over and above the wages paid e.g.

goods at a discount, subsidized meals, arrangements etc.

34. Griffin goods are goods which do not obey the law of demand viz. that less is bought

as price rises

35. Global warming is an increase over a period of the average temperature of earth's

atmosphere and oceans. The greenhouse effect is attributed as the main reason

for the phenomenon. Average global temperature since the late 19th century is taken

(plus or minus) for assessing the effect of global warming

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36. Gold ETF is gold exchange traded funds and they are the instruments that trade like

shares and are backed by physical gold holdings

37. Mail merge is the process of linking a document or letter with a required data file in such

a way that different people will get letters with appropriate details

38. Moratorium is the temporarily sopping of an activity or postponement or the time for

payment of debts or financial obligations

39. Netizen is a new term coined by linking the terms - internet and citizen. In the modern

age of information technology, any citizen who regularly uses the internet can be called as

a netizen.

40. Outsourcing is the system of contracting information technology related jobs like

translation, transcription, digitization, data conversion, software development , call

centre services etc. to outside agencies. The work may be done by the agencies within

the country or outside

41. Per capita income is the total income of a group divided by the number of people in

the group

42. Personal property is the temporary or movable property as distinguished from real

property

43. Plagiarism is the act of illegally copying and using another person's writings, ideas,

inventories etc., and presenting it as one's own.

44. Portfolio is the collection of securities held by an investor

45. Recession is a downturn in the business cycle characterized by two successive quarters of

negative rates of growth in the real gross national product

46. Soft currency is a currency whose exchange rate is tending to fall because of persistent

balance of payment deficits of because of the building up of speculative selling of

the currency in expectation of a change in its exchange rate

47. Soft loan is a loan bearing either no rate of interest or an interest rate which is below

the true cost of the capital lent.

48. Straight time is the number of working hours fixed as a standard for given work period

49. Tax avoidance is arranging one's financial affairs within the law so as to minimize taxation

liabilities

50. Tax evasion is failing to meet actual tax liabilities

51. Truck system is a system in which wages are paid in goods or kind rather than money

52. Watermark is a design applied to paper when it is made. It can be seen by holding the

paper up to the light. Currency notes and postage stamps carry a watermark to prevent

forgery

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PART X

BUDGET TERMS

01. Appropriation bill is a bill that enables withdrawal of money from the consolidated fund

to pay off expenses. These are instruments that Parliament clears after the demand for

grants has been voted by the Lok Sabha

02. Bank credit includes loans, cash credit and overdrafts and inland bills and foreign bills

purchased and discounted

03. Bill is a draft legislative proposal which becomes an act when passed by both houses of

Parliament and assented to by the President

04. Budget deficit is a part of the fiscal deficit and it represents the borrowing requirement

of the centre

05. Budget estimates - The estimates of government spending on various sectors during

the year plus income in the form of tax revenues

06. Capital revenues - Expenses incurred on acquisition of assets by the government

07. Capital receipts - Include loans raised by center from the market, government

borrowings from Reserve Bank of India and proceeds from disinvestment

08. Consolidated fund - includes all revenues received by Government, loans raised and

receipts from recoveries of loans granted by it.

09. Consumer Price Index - is a price index covering the prices of consumer goods

10. Contingency fund - is used by the government in emergencies to meet unforeseen

expenditures, that cannot wait for Parliament authorization

11. Corporate tax - is levied on the profits of firms, as distinct from taxation of the

incomes of their owners

12. Current account deficit - excess of expenditure over receip0ts on current account in a

country's balance of payments

13. Current account surplus - excess or receipts over expenditure on current account in a

country's balance of payments

14. Direct taxes - are levied on the consumers directly. These include income tax, corporate

tax and

15. capital gains tax

16. Disposable income - Income minus income tax. This is income available in your

hands for expenditure

17. Disinvestment - The dilution or selling of the government stake (ownership) in public

sector undertakings

18. Excise duties - are levied on items manufactured within the country and are paid

by the manufacturers.

19. Finance bill- Government's plans for imposing new taxes, modifying of the existing tax

structure or continuing the existing tax structure beyond the period approved by the

Parliament

20. Fiscal deficit - difference between the revenue receipts and total expenditure

21. Foreign direct investment - is made in India by a company incorporated abroad,

through a branch or a subsidiary company set up in India

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22. Foreign Institutional Investor - an institution established outside India which proposes to

invest in India

23. GDP - Total market value of finished goods and services produced in the country in a given

year

24. Gross National Product - GDP plus income of residents from investments made abroad

minus income earned by foreigners in domestic market

25. Indirect taxes - are charged on goods produced, imported or exported in the country.

These taxes

26. include excise and customs duties

27. Inflation - Inflation rate is the percentage rate of change in the price level

28. National debt - Total outstanding borrowings of the central government exchequer

29. Peak rate - the higher rate of customs duty applicable on an item

30. Per capita income - the national income of a country, or region, divided by its population

31. Progressive tax structure - a tax structure in which the marginal tax rate increases as the

level of income increases

32. Revenue expenditure - expenses incurred for functioning of government departments,

interest on debt, subsidies etc

33. Revenue receipts - include tax and duties collected by government and interest and

dividend on investments made by government

34. Revised estimates - difference between budget estimates and the actual figures

pertaining to the economy

35. Sales tax - a tax levied at a percentage of retail sales

36. Vote on account - it is a sort of interim budget where the government presents accounts

required to keep the machinery running until the next government takes over

37. Wholesale price index - Prices of goods that are dealt with wholesale (mostly

inputs to production, rather than finished commodities)

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Kisan Vikas Patra

History

Kisan Vikas Patra (KVP) – a certificate savings scheme was launched by the Government on

1st April, 1988.

The scheme provided facility of unlimited investment by way of purchase of certificates from

post offices in various denominations.

The maturity period of the scheme when launched was 5 ½ years and the money invested

doubled on maturity.

The scheme was very popular among the investors and the percentage share of gross

collections secured in KVP was in the range of 9 % to 29 % against the total collections

received under all National Savings Schemes in the country.

Gross collections under the scheme in the year 2010-11 were Rs. 21631.16 crores which was

9 % of the total gross collections during the year. In the year of its closure, the scheme

secured gross collections of Rs. 7575.95 crores (April 2011 to November 2011).

The Re-launched Present KVP

Kisan Vikas Patra(KVP) is a risk free investment scheme re-launched in November, 2014, which was

discontinued in 1st December 2011. This scheme is for people who are less risk averse and are

looking for stable income. Under this scheme money doubles in 100 months, interest is compounded

annually. Interest rate is said to be at 8.7%.

How to invest in Kisan Vikas Patra 2014?

The scheme is offered by India post office. One can fill the form and submit it along with cash or

cheque and your photograph. The certificate will be issued only after the cheque has been realized

by the Post Office.

The certificate will be issued by Post office called as "Kisan Vikas Patra" with your name, amount,

date of maturity and amount on the date of maturity.

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Who can invest in KVP?

Eligible :

Any citizen of India can invest in Kisan Vikas Patra in his name, or on behalf of a minor.

A trust is also eligible to invest in KVP.

Two adults can jointly buy KVP.

Not Eligible:

× Business entities such as a company or institutions.

× NRIs or HUF (Hindu Undivided Family) are also not eligible to invest in KVP.

Features of KVP

1. Investment can be made in denomination of Rs. 1000, 5000, 10,000 and 50,000.

2. There is no upper ceiling on investment.

3. KVP comes with a maturity of eight years four months or 100 months.

4. The certificates can be issued in single or joint names and can be transferred from one

person to any other person.

5. KVP can be transfer from one post office to another anywhere in India and of nomination

will be available.

6. One can avail loans on KVP from the banks and in other case where security is required to

be deposited.

7. Liquidity: Investor can encash his certificates after the lock-in period of 2 years and 6

months.

8. After the lock-in period it can be redeemed every 6 monthly interval.

9. Simple interest is calculated for initial 2.5 years, after which it is compounded annually.

10. No PAN number is required for investment in Kisan Vikas Patra

Tax Benefit:

There are no tax benefits since interest accrued on Kisan Vikas Patra is taxable.

The only KVP Tax benefit is that there is no Wealth Tax liable on Kisan Vikas Patra. KVP has

complete exemption from Wealth-Tax.

Tax is not Deducted at Source(TDS), One has to pay tax on the interest accrued.

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Comparing with bank deposits

Taking three other relevant traits — liquidity, convenience and tax advantage — the new

KVP is reasonably liquid. Investors can come out after the minimum lock-in period in eight

equal instalments. The KVP can also be given as collateral. Unlike PPF and NSCs, the KVP

does not have a tax advantage. Interest on it is fully taxable.

Bank deposits are superior to KVP in terms of returns — three year fixed deposits offer 9 per

cent and some banks even more. The argument that deposit rates are set to fall over the

medium-term is no doubt valid, but one expects the banks to safeguard their depositors’

concerns by floating innovative schemes. It is also certain that the corporate bond market

will revive and be a conduit for infrastructure finance. This will matter to senior citizens and

others who want a fixed, steady return in the form of investment in infrastructure bonds.

Bank deposits are liquid, absolutely secure and highly accessible to most middle-class

investors. They have a minimum tax advantage — practically restricted to interest on savings

accounts.

For those who have no access to banks, investment in KVP may be a worthwhile proposition.

Having no tax concessions, the KVP as in investment is for those who do not pay taxes at all

or are in the lower tax bracket.

The biggest advantage claimed for the KVP — indeed its USP — is that it is a bearer bond,

transferable by endorsement and delivery. This confers unmatched anonymity to the holder

of the instrument.

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NITI Aayog or National Institution for Transforming India Aayog is the replacement of Planning

Commission of India, marking the end of the Nehruvian institution that pioneered India’s five-year

planned development approach.

The primary job of the new body—described as a Think-Tank—will be to advise the government on

social and economic issues. Unlike the Nehruvian plan panel, the new body will not have the power

to disburse funds to central ministries and state governments.

National Institution for Transforming India (NITI) Aayog has been created in accordance to the

announcement made by the Prime Minister Narendra Modi on 15 August 2014. On the

Independence Day, he announced that the government will replace the Planning Commission which

was established on 15 March 1950 through a Cabinet Resolution.

Further to revamp the Planning Commission, the Prime Minister met with Chief Ministers and

Governors of various States on 7 December 2014 and discussed their opinions on the same to

separate the process of governance from the strategy of governance.

Difference between Planning Commission and NITI Aayog

NITI Aayog aims to foster cooperative federalism through structured support initiatives and

mechanisms with the States on a continuous basis, recognizing that strong states make a strong

nation. States will continue to receive support for removing bottlenecks and will be able to approach

the new institution for consulting and capacity building. Further, the states will also tailor their plans

to suit their needs under more than 40 centrally sponsored schemes.

Instead of top down approach in planning commission, the new body will adopt a ‘Bottom Up’

approach, where decisions will be taken at the local level and then endorsed at the Central level.

This also reflects new government's approach to develop mechanisms to formulate credible plans at

the village level and aggregate these progressively at higher levels of Government. NITI Aayog will

also serve as a ‘Think Tank’ of the Government and will provide Centre and States with relevant

strategic and technical advice across the spectrum of key elements of policy.

The declared intent to empower states has played well as non-NDA chief ministers have also

supported the dissolution of Planning Commission.

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Composition of NITI Aayog

Chairperson: Prime Minister

Vice Chairman: Arvind Panagariya(Expected)

Governing Council: CM's (States) & Lieutenant Governors (Union Territories)

Regional Councils: Formed on need-basis, incorporates CM's & Lt Governors of the region

Members: Full-time basis

Part-Time Members: Max 2, Rotational, from relevant institutions

Ex-officio Members:Max 4 from council of ministers, nominated by PM

Special Invitees: Experts, specialists, practitioners with domain knowledge

CEO: Appointed by PM for fixed tenure

Secretariat: If necessary

PM will head the body and its governing council will include all chief ministers and lieutenant

governors, in line with the PM's thrust on cooperative federalism that advocates involving states in

the Centre’s decision making

Arvind Panagariya is an Indian-American economist and Professor of Economics at Columbia

University and an ex-Chief Economist at the Asian Development Bank.

Functions

An administration paradigm in which the Government is an "enabler" rather than a

"provider of first and last resort."

Progress from "food security" to focus on a mix of agricultural production, as well as actual

returns that farmers get from their produce.

Ensure that India is an active player in the debates and deliberations on the global

commons.

Ensure that the economically vibrant middle-class remains engaged, and its potential is fully

realized.

Leverage India's pool of entrepreneurial, scientific and intellectual human capital.

Incorporate the significant geo-economic and geo-political strength of the Non-Resident

Indian Community.

Use urbanization as an opportunity to create a wholesome and secure habitat through the

use of modern technology.

Use technology to reduce opacity and potential for misadventures in governance

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Objectives

To foster cooperative federalism through structured support initiatives and mechanisms

with the States on a continuous basis, recognizing that strong States make a strong nation.

To develop mechanisms to formulate credible plans at the village level and aggregate these

progressively at higher levels of government.

To ensure, on areas that are specifically referred to it, that the interests of national security

are incorporated in economic strategy and policy.

To pay special attention to the sections of our society that may be at risk of not benefitting

adequately from economic progress.

To design strategic and long term policy and programme frameworks and initiatives, and

monitor their progress and their efficacy. The lessons learnt through monitoring and

feedback will be used for making innovative improvements, including necessary mid-course

corrections.

To provide advice and encourage partnerships between key stakeholders and national and

international like-minded Think Tanks, as well as educational and policy research

institutions.

To create a knowledge, innovation and entrepreneurial support system through a

collaborative community of national and international experts, practitioners and other

partners.

To offer a platform for resolution of inter-sectoral and inter-departmental issues in order to

accelerate the implementation of the development agenda.

To maintain a state-of-the-art Resource Centre, be a repository of research on good

governance and best practices in sustainable and equitable development as well as help

their dissemination to stake-holders.

To actively monitor and evaluate the implementation of programmes and initiatives,

including the identification of the needed resources so as to strengthen the probability of

success and scope of delivery.

To focus on technology upgradation and capacity building for implementation of

programmes and initiatives.

To undertake other activities as may be necessary in order to further the execution of the

national development agenda, and the objectives mentioned above.

The Prime Minister had recently called meeting of all chief ministers to deliberate on the

structure of the new body which would replace the Commission.

The majority view that emerged after the meeting was in favour of decentralisation of

power.

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CONCLUSION

Congress-ruled states, however, had reservations about dismantling an institution which was set up

by the first Prime Minister Jawaharlal Nehru and they suggested restructuring of the existing body,

rather than a complete replacement.

Incidentally, Nehru himself is said to have faced resistance to the idea of setting up of the Planning

Commission, but it went on to become a major platform for successive governments to formulate

and push forward economic policies and other development plans.

Finance Minister had then said that a principle of 'cooperative federalism' is being followed in

setting up the new body in place of Planning Commission.

"Our government stands by the principle of cooperative federalism, empowering states, least

number of central schemes and more state schemes," Jaitley said while replying to a debate in the

Lok Sabha.

The Planning Commission was set up by a simple government resolution in March 1950 and has

withstood many political and economic upheavals, as also some occasional controversies, including

those related to its poverty estimates as also about a huge toilet renovation bill and foreign tour

expenses of its last Deputy Chairman.

The plan panel has commissioned 12 five-year plans and six annual plans involving fund outlays of

over Rs 200 lakh crore in its 65-year-history.

www.exampundit.in

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IBPS CLERK 2014 – All GA Questions Asked 1. Who is the ICC ODI Team of the year captain? - MS Dhoni

2. Ritu Rani is related to which sports? - Hockey

3. What is the UIDAI deadline? - March, 2015

4. Which wildlife sanctuary is a World Heritage Site? - Manas Wildlife Sanctuary

5. What is the full form of GDP? - Gross Domestic Product

6. What is balance sheet? - A statement of the assets, liabilities, and capital of a business or other

organization at a particular point in time

7. What is the capital of Malaysia? - Kuala Lumpu

8. Who is Union Environment Minister? - Prakash Javadekar

9. What is the Currency of Japan? - Yen

10. Where is the UNICEF head office? - New York

11. Which multinational game event was played in Incheon?- Asian Games

12. VDU full form - Visual Display Unit

13. DVD full form - Digital Versatile Disc

14. Full form of GUI? - Graphic User Interface

15. EPROM stands for? - erasable programmable read only memory

16. Which of these is not an indirect tax? - Income tax

17. Mortgage Loan are given on which type of property? - Real Property

18. Who is Union Tourism minister? - Dr. Mahesh Sharma

19. One byte has how many bits? - 8

20. National education day is celebrated on? - 11 November

21. Certificate of commencement is required for which type of organization? - Public Company

22. NBFCs are regulated by? - RBI

23. RRBs are sponsored by? - PSUs

24. Coral field in which state? – Gujarat

25. Who is the Union Rural Development Minister? - Ch. Birender Singh

26. NEFT full form - National Electronic Funds Transfer

27. GST Full Form - Goods and Services Tax

28. Sardar Singh is related to which sport? - Hockey

29. IRNSS 1C is of which country? - India

30. What is the capital of Fiji? - Suva

31. World Standards Day is celebrated on? - 14 Oct

32. What is the currency of New Zealand? - New Zealand Dollar

33. 2018 Asian games will be held in ? – Indonesia

34. National Disaster Management Authority head is? - Narendra Modi

35. Asian Development Bank Headquarters is located in ? - Metro Manila, Philippines

36. Who received Nobel prize in economics? - Jean Tirole

37. WHO headquarter is located in? - Geneva, Switzerland

38. Longest international boundary from which Country? - Canada–United States border

39. Full form of ISDN - Integrated Services Digital Network

40. Which film is the official entry for India in OSCAR? - Liar's Dice

41. What does CTRL+2 do in MS-Excel? - Apply or Remove Bold Formatting

42. Linux is an - Open Source OS

43. Full form of HTML - HYPERTEXT MARKUP LANGUAGE

44. What is the currency of Egypt - Egyptian Pound

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45. URL Full Form - Uniform Resource Locator

46. World Pneumonia Day celebrated on - November 12

47. KYC implemented under which act? - Banking Regulation ACT 1949

48. Unity day celebrated on the birth Anniversary of? - Sardar Vallabhbhai Patel

49. Hindu Kush mountains located in between which countries? - Afganisthan and Pakistan

50. NAV stands for - Net Asset Value

51. WAN full form - Wide Area Network

52. Who is the National Women Commission chairman? – Lalitha Kumarmangalm

53. DOS stands for – Disk Operating System

54. Full form of VIRUS - Vital Information Resources Under Siege

55. LSI stands for – Large Scale integration Computer

56. NPPA stands for - National Pharmaceutical Pricing Authority

57. LTV stands for – Loan To Value

58. IPO stands for – Initial Public Offering

59. Banking Ombudsman committee appointed by? - RBI

60. Who frame Monetary policies? - RBI

61. Validity of Kisan Credit Card - 5 Years

62. Who is the Union Information and Broadcasting Minister ? - Arun Jaitley

63. What is the Capital of Cambodia? - Phnom Penh

64. NBFC stands for - Non-Banking Financial Company

65. Who is Normon Gordan? - South-African Cricketer

66. Who will appoint Lokpal Director? - Central Vigilance Commission

67. RBI granted Banking licence to which new bank? - IDFC/Bandhan

68. TDS stands for - Tax Deducted at Source

69. FEMA stands for – Foreign Exchange Management Act

70. Hand-In-Hand was a military exercise between? - India and China

71. G20 Summit 2016 will be held in which country? - China

72. Age limit for minors to operate saving account – 10 years

73. What is the currency of Italy? - Euro

74. What is the capital of Sweden? - Stockholm

75. Full Form of KYC and BC in banking - know your customer and business correspondent

76. National Broadcasting Day is celebrated on - 12th November

77. Playing it my way is the autobiography of? - Sachin Tendulkar

78. Which state declared tourism year in 2015? - Madhya Pradesh

79. What is Amortization? - The paying off of debt with a fixed repayment schedule in regular

instalments over a period of time. (Investopedia Definition)

80. In India who is the Last resort of bank? - RBI

81. Captain of India in ICC world cup? – MS Dhoni

82. Where was World chess championship held? - Sochi, Russia

83. Which state has highest rural population as per census 2011?- U.P

84. Commonwealth games 2018 will be held in - Queensland, Australia

85. UNESCO headquarter is situated at - Place de Fontenoy, Paris, France

86. Which one is big Mb,Gb,Kb,Tb - TB

87. What is the duration of PPF? - 15 Years

88. MOM stands for? - Mars Orbiter Mission

89. Full form of NPA - Non-Performing Assets

90. Full form of URL? - Uniform Resource Locator

91. What is processes data?

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92. Full form of RTGS? - Real Time Gross Settlement

93. Full form of DOS? -Disk Operating System.

94. Full form of CRT? - Cathode Ray Tube

95. Dr. Manmohan Singh won Top Japan's Award - The Grand Cordon of the Order of the Paulownia

Flowers 2014

96. Recently banned Militant Kamatpur Liberation Organisation operates in? - North East India

97. Full form of NVRAM? - Non-Volatile Random Access Memory.

98. Definition of Inflation? - A general increase in prices and fall in the purchasing value of money.

99. Which country helped India to build LSRAM-8 Missile ? – Israel

100. What is the limit of free monthly ATM transaction under PMJDY ? - 4

101. Who is the current health minister ? - J.P.Nadda

102. Rauf dance is related to which state ? - Jammu and Kashmir

103. Who is named as the test cricketer of the year? - Mitchell Johnson

104. Where is the headquarter of SIDBI ? – Lucknow

105. Who is the founder of Alibaba ? - Jack Ma

106. Who received Shanti Swaroop Bhatnagar Award in Medical Sciences 2014? - Dr. Anurag

Agarwal

107. Where is NANGA Mountain situated? - Pakistan

108. Who received the Nobel Prize in Medicine in 2014? - John O'Keefe, May-Britt Moser and

Edvard I. Moser

109. National Dairy Development Board is located in? - Anand, Gujarat

110. What is the Validity of Kisan Vikas Patra? - 8 years and 7 months

111. UNIDO Headquarter is situated at ? - Vienna, Austria

112. Who is the new Chief Justice of India? - Justice HL Dattu

113. Unbreakable is the Autobiography of? - MC Mary Kom

114. Who received the Euromoney Central Bank Governor of the Year ? - Raghuram Rajan

115. What is the currency of Indonesia? - Indonesian Rupiah

116. Pakistan recently tied up in Military agreement with which country? - China

117. Swachch Bharat logo was design by whom? - Anant Khasbardar form Maharashtra

118. Which Indian cricketer named Bradman Foundation Honorees? - Sachin Tendulkar

119. Richard Flanagan won Man Booker prize in 2014 for which book? - The Narrow Road To The

Deep North

120. According to 2011 Census most of the slums is in which city? - Mumbai

121. What is the full form of RTGS? - Real time gross settlements

122. What is the capital of Canada? - Ottawa

123. Pankaj Adwani is related with which game? - Billiards

124. FCCB full form - Foreign Currency Convertible Bond

125. Nasik situated on bank of which river? - Godavari

126. Air Force Day is celebrated on? – 8th October

127. What is the Capital of Saudi Arabia? – Riyadh

128. Recently, ING Vysya Bank merged with which bank? – Kotak Mahindra Bank

129. Who received Nobel Prize in Literature? - Patrick Modiano

130. What is the use of KYC? – Money Laundering

131. Which company launched the email service named "Verse"? - IBM

132. Who topped the medal tally in Asian Games 2014? – China

133. BIOS full form? – Basic Input Output System

134. What is the Currency of Brazil? – Brazil Real

135. What is the full form of IPO? – Initial Public Offering

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136. What is the Middle 3 digits in MICR? – Bank code

137. Which Constituency did Nitin Gadkari stand for in 2014 Lok-Sabha Election? – Nagpur

138. NPA full form? – Non Performing Assets

139. Where is UNDP Headquarter located? – New York

140. Women Kabaddi won which medal in Asian Games 2014? – Gold Medal

141. Seema Poonia is related to which sport? – Discus Throw

142. On What basis interest on Savings Account is given? – Daily basis

143. Before PM Narendra Modi who has given speech in Hindi in United Nations? – Atal Bihari

Vajpayee

144. NAV full form – Net Asset Value

145. Richard Flanagan belongs to which country? - Australian

146. Gujarat govt. declared Vadodara as? – State Cultural Capital

147. Full form of CASA? - Current A/c Savings A/c

148. Who is the Union Science and Technology Minister? – Harsh Vardhan

149. Tinku Luka is related to which Sport? – Relay Race (Athlete)

150. Percentage of TDS without PAN CARD? - 20%

151. What is the overdraft amount under PMDJY? - 5000 Rs.

152. Which of the following is not in the list of top 10 richest person ?

153. In IFFI, Rajnikanth was awarded by whom? - Amitabh Bachchan

154. What is the full form of NCR? - National Capital Region

155. Sarita Devi is related with which sport? - Boxing

156. Nalanda University is situated in which state? - Rajgir, Bihar

157. UNIDO headquarters is located in? - Vienna, Austria

158. What is the maximum amount of investment in KVP? - No Limit

159. Ghoomar Dance is associated with which state? - Rajasthan

160. Where is ISRO headquarter situated ? - Bengaluru

161. What is the currency of China? – Yuan or Renminbi

162. International Human Rights Day is celebrated on? - 10 December

163. What is EBOLA? - An infectious and generally fatal disease

164. Which of the following river is in MP? - Narmada River

165. What is the total number of PSU Bank in India? - 21

166. What is the full form of VAT? - Value Added Tax

167. RTGS full form- Real Time Gross Settlement

168. Maximum amount for BSBDA-Small Account? - 50 Thousand Rupees

169. Half Girlfriend is written by? - Chetan Bhagat

170. Lee Chong Wei is related with which sport? - Badminton

171. Bangkok is the capital of which country? - Thailand

172. What is the capital of Bhutan? - Thimpu

173. Who appoints Banking Ombudsmen? - Reserve Bank of India

174. Bhaichung Bhutia is related to which sport? - Football

175. Who can open a Small Account(Laghu Account) - People who don't have valid residential

proof as per KYC

176. What is the target of opening bank accounts under PMJDY? - 10 Crore

177. What is the currency of Oman? - Omani Rial

178. What is the capital of Kuwait? - Kuwait City

179. UNICEF Headquarters located in? - New York

180. International Day for the Elimination of Violence against Women is celebrated on? - 25

November

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181. Who is the State Minister Of Skill Development & Entrepreneurship? - Rajiv Pratap Rudy

182. Anirban Lahiri is related to which sport? - Golf

183. Commonwealth Science Conference was held in? - Bangalore, India

184. 18th SAARC Summit was held in? - Kathmandu, Nepal

185. Sardar Vallabhbhai Patel's birth anniversary is also celebrated as? - National Unity Day

186. Who is the Union Minister of Information and Broadcasting? - Arun Jaitley

187. Rajnath Singh contested from which constituency in Lok Sabha Election 2014? - Ghaziabad

188. 2016 Summer Olympics will be held in? - Rio de Janeiro, Brazil

189. 31st October is celebrated as? - World Savings Day

190. Sansad Adarsh Gram Yojana was launched on whose birth anniversary? - Jayaprakash

Narayan

191. Who will provide the 1 Lakh Insurance Cover in PMJDY? - Central Govt.

192. Davis Cup is related to which sport? - Tennis

193. What is the last date of withdrawing Pre-2005 Notes? – January, 2015

194. United Nations Day is celebrated on? - October 24

195. Vishwanathan Anand is related to which sport? - Chess

196. What is the capital of Austria? - Vienna

197. What was the budget of Mars Mission of India? - 450 Crore

198. Who wrote Crusader or Conspirator? Coalgate and Other Truths ? - PC Parakh

199. SAARC 2016 will be held in ? - Islamabad, Pakistan

200. Who headed the Financial Inclusion Committee? - Nachiket Mor

201. What is the currency of Srilanka? - Rupee

202. Dongfeng missile is from which country? - China

203. Who is the author of The Dramatic Decade: The Indira Years? - President Pranab Mukherjee

204. International Day of Non Violence is celebrated on? - 2nd October

205. What is the Current Sex Ratio of India ? - 943 females per 1000 males

206. Who is the Insurance regulator in India? - IRDA

207. 2018 Hockey World Cup will be held in? - India

208. Britt and Edvard Moser won Nobel prize in? - Medicine

209. Ryder Cup is associated with? - Golf

210. How is PMJDY different from the earlier Financial Inclusion Plan (Swabhimaan)?- PMJDY

focuses on coverage of households as against the earlier plan which focused on coverage of villages.

211. Insurance cover in PMJDY given by?- Accidental cover of 1,00,000 by HDFC Ergo and Life

insurance cover of 30,000 by LIC.

212. Prime Lending Rate is decided by? - RBI

213. IRDA Headquarter is situated in? - Hyderabad, Telengana

214. Which Agreement was signed in 18th SAARC Summit? - Agreement on Energy Cooperation

215. What is the reason of withdrawing Pre-2005 Notes? - To curb the fake currency

216. What is the population density of India in 2011 Census? - 382/SqKm

217. India won the gold medal in Hockey in Asian Games by defeating which country? -

Pakistan

218. Who along with Sachin Tendulkar became the latest honourees of the Bradman

foundation? - Steve Waugh

219. Who made the biggest thermal power plant in India? - Adani Group

220. Who is Veenapani Chawla? - Famous Theater Artist

221. Hornbill Festival is related to which state? - Nagaland

222. Who won the Nobel prize in Economics? -Jean Tirole

223. Commercial Papers are issued by? - RBI(Not yet clarified)

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224. What is the capital of Iraq? - Baghdad

225. National Science Center is situated in? - Delhi, India

226. 2016 Euro Cup will be held in? - France

227. What is the currency of Saudi Arabia? -Saudi Riyal

228. Which Day celebrated on 19 November? - World Toilet Day

229. What is the Full form of IFSC? - Indian Financial System Code

230. First three digit in MICR represents - City

231. Who initiated Micro-finance in India? - NABARD

232. What is the share of State Governments in Regional Rural Banks? - 15%

233. What is the objective of PMJDY? - Covering all households in the country with banking

facilities and having a bank account for each household

234. What is the full form of SEZ? - Special Economic Zone

235. What is the Lock In Period of Fixed Deposit? - 5 Years

236. What is the full form of IRS? - Indian Remote Sensing

237. What is the full form of GST? - Goods and Service Tax

238. World AIDS Day is celebrated on? - 1st December

239. UNEP headquarters is located in? - Nairobi

240. What is the full form of MITC? - Most Important Terms and Conditions

241. What is the range of CIBIL Credit Report? - 300 to 900 points

242. Who is the UN Goodwill Ambassador of South Asia (HeForShe Campaign) - Farhan Akhtar

243. Dronacharya Award is given in which field? - Coaching in Sports

244. What does E stands for in EBT? - Electronic

245. What is the currency of Argentina? - Argetine Peso

246. What is the capital of Australia? - Canberra

247. Who was Tapan Raychaudhuri? - Indian Historian

248. Sarjubala Devi is related to which sport? - Boxing

249. What is the full form of CBS? - Core Banking Solution

250. RTGS is used for ? - High-value transactions that require immediate clearing

251. What was the Constituency of Sushma Swaraj? - Vidisha, MP

252. What is the name of First Mars Mission by NASA? - Mariner 4

253. The book Lowland is written by? - Jhumpa Lahiri

254. What is the revised target a/c in PMJDY? - 10Crore

255. Who is the runner-up of Vijay Hazare Trophy 2014? - Punjab

256. WHO headquarters is situated in? - Geneva, Switzerland

257. Who received BCCI Lifetime Achievement Award in 2014? - Dilip Vengsarkar

258. Who is the president of Brazil? - Dilma Rousseff

259. What is the minimum age of Minor A/c? - 10Years

260. What is the minimum paid-up capital for Payment Banks? - 100 Crore

261. Lucknow is situated in banks of which river? - Gomati

262. Antyodaya Diwas is celebrated on who's remembrance? - Deen Dayal Upadhyay

263. 2016 G20 Summit will be held in? - China

264. What is the minimum lock-in period of KVP? - 2Years 6Months

265. Who received the Nobel Prize in Economics? - Jean Tirole

266. Who received Shanti Swaroop Bhatnagar Prize in Physical Science? - Dr. Pratap

Raychaudhuri and Dr. Sadiqali Abbas Rangwala

267. What is the maximum validity of Kisan Vikas Patra? - 100 months

268. What is the full form of EVM? - Electronic Voting Machine

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269. Which is the largest public sector insurance company in India? - Life Insurance Corporation

of India

270. Person with Disability Day is celebrated on? - 3rd December

271. Recently NTPC tied up with which state to set up a 1000 mw Plant? - Andhra Pradesh

272. What is the name of the book authored by Rajamohan Gandhi? - Prince of Gujarat: The

Extraordinary Story of Prince Gopaldas Desai (1887-1951)

273. USA is developing which cities in to Smart cities in India? - Allahabad, Ajmer and Vishakhapattnam

274. What is the full form of RTGS? - Real Time Gross Settlement

275. In FEMA, M stands for what? - Management

276. What is the capital of Afganistan? - Kabul

277. In 2009, the Sex ratio was 900, how much it increased in 2011? - 40 ( Some said wrong option was

there)

278. In MICR the middle 3 digits represent? - Bank Code

279. What is the name of the book authored by Yashwardhan Shukla? - Gods of Antarctica

280. What is the currency of Bhutan? - Ngultrum

281. What is the amount of Accidental Insurance cover in Pradhan Mantri Jan Dhan Yojana? - 1 Lakh

Rupees

282. What is the full for MMID? - Mobile Money Identifier

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ATM or Automated Teller Machines or Automated Banking Machines(in Canada) is an E-banking

machine which performs financial transactions without the help of a Bank Employee. Exampundit won't

confuse you with tough words instead we will use basic logic and words to describe.

ATM Usage Growth(Non-economical Cause):

In the recent years, the trend of ATM has grown all over India. Now there are many economical/financial

expert analysis on the growth of ATM usage, especially in Urban Areas but What are the very basic non-

economic causes of the rise?

Now in the urban areas, people usually avoids the Branch unless it is necessary. Hence, people in a large

amount who are living a busy scheduled life, usually prefers the ATMs. This is an original exampundit

content. Now, this is not an expert analysis, but a very basic concept which any interviewer can ask you.

Trivia: For every 10 lakh of its population, the US has 1,390 ATMs, UK has 530 ATMs and China has 211

ATMs, while India has only 98 ATMs for the same number of people.

Types of ATMs in India:

Basically there are 3 types of ATMs by nature are there in India. ATMs which are owned by Banks, Brown

Label ATMs and White-Label ATMs. On the other hand, we have 3 types of ATMs by Location.

ATMs by Nature of Installation:

Bank ATMs: The ATMs which are Owned, Managed, Installed by Banks. The most common, you see in

the Bank Branch building.

Brown-Label ATMs: Now, Brown-Label ATMs are little different from Bank ATMs. They are outsourced to

a company, who manages, installs and look after the ATMs. However, these ATMs has a Logo of the

Bank in it, which makes sure, that ATM is installed by the Bank. Mostly these were used by Private Sector

Banks in India.

Some of the High-Tech Brown-Label ATMs swallows the Card till the transactions are over. You can check

them out in metro cities under various famous banks like, Standard Chattered, HDFC, Yes Bank, ICICI

Bank.

White-Label ATMs: White-Label ATMs are similar to Brown-Label ATMs except the fact, they don't have

any Bank Logo in them. Now, Tata Indicash, currently famous WLATM, do have a logo of Indicash in it.

Now, if they don't have anything written in them, then how will we understand its a ATM? Isn't it? Also

WL-ATMs has Advertisements which Brown-Label or Bank ATMs NEVER HAD.

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ATMs By Location:

Onsite ATMs: Onsite ATMs are the ATMs we see with the Branch Building. When you get into HDFC or

SBI, you will often see ATMs. These are Onsite ATMs.

Offsite ATMs: Offsite ATMs are the ATMs we see in some separate house/building. These ATMs are not

attached to the bank branch building but in the areas of Bank Branch.

Stand Alone ATMs: Stand-alone ATMs are similar to Offsite ATMs except the fact, they are just the

Machines and Nothing Else. Now where do we see them? We usually go to Supermarkets or Shopping

Malls, and we notice ATMs. They are the most common example of Stand-Alone ATMs.

Definition of Cheque Truncation:

Truncation is the process in which an issued cheque is not moved physically from the drawer

bank branch to the drawee bank branch. Instead an electronic image of the cheque is sent to

the drawee branch through the clearing house along with relevant information like data on the

MICR band, date of presentation, presenting bank, etc.

Cheque truncation thus eliminates the requirement of physically moving documents across bank

branches except unavoidable circumstances. This effectively eliminates the associated cost of

movement of the physical cheques, reduces the time required for their collection and brings

elegance to the entire activity of cheque processing.

RBI decided to prescribe certain benchmarks towards achieving standardisation of cheques

known as “CTS-2010 standard”, specifications.

Role of NPCI:

RBI has mandated NPCI to operationalise CTS. NPCI will act as a Cheque Processing Centre (CPC)

and will process electronic cheques and images received from member banks

Mandatory features applicable:

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Paper: Paper should have protection against alterations by having chemical sensitivity to acids,

alkalis, bleaches and solvents giving a visible result after a fraudulent attack. CTS-2010 Standard

paper should not glow under Ultra-Violet (UV) light i.e., it should be UV dull.

Watermark: All cheques shall carry a standardized watermark, with the words “CTS-INDIA”. It

should be oval in shape and diameter could be 2.6 to 3.0 cms. Each cheque must hold atleast

one full watermark.

VOID pantograph: Pantograph with hidden / embedded “COPY” or “VOID” feature shall be

included in the cheques. This feature should be clearly visible in photocopies and scanned colour

images as a deterrent against colour photocopy or scanned colour images of a cheque.

Bank’s logo: Member Bank’s logo shall be printed in ultraviolet (UV) ink. The logo will be

captured by / visible in UV-enabled scanners / lamps. It will establish genuineness of a cheque.

Mandating colours and background: Light / Pastel colours so that Print / Dynamic Contrast

Ratio (PCR / DCR) is more than 60% for ensuring better quality and content of images.

Prohibiting alterations / corrections on cheques: No changes / corrections should be carried

out on the CTS cheques (other than for date validation purposes, if required). For any change in

the payee’s name, courtesy amount or legal amount etc., fresh cheque forms should be used by

customers. This requirement is for cheques issued under CTS only and no other cheques.

Printing of account field: Cheques used in current accounts and corporate customers, should be

issued with the account number field pre-printed. Courtesy amount means amount in figures

and legal amount means in words.

Importance of CTS:

Speeds up the process of collection of cheques resulting in better service to customers

Reduces the scope for clearing-related frauds or loss of instruments in transit

Lowers the cost of collection of cheques

Removes reconciliation-related and logistics-related problems

The homogeneity in security features also act as a deterrent against cheque frauds.

Clearing Methods:

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Speed Clearing is an arrangement to clear intercity non-at par items.

Grid Clearing is an arrangement that allows banks to present/receive cheques from/to multiple

cities in a Single Clearing House through a service branch at one city.

What benefit does CTS provide to Bank's Customers?

It reduces the time taken to clear the cheques as well gives banks to offer better customer

services and increases operational efficiency by decreasing on overheads involved in the

physical cheque clearing process which was used earlier.

It also provides better reconciliation and fraud prevention.

List of Important Financial Government Bodies in India under

Ministry of Finance

A

Agricultural and Processed Food Products Export Development Authority (APEDA)

B

Basic Chemicals, Pharmaceuticals and Cosmetics Export Promotion Council (CHEMEXCIL)

C

Central Registry of Securitization Asset Reconstruction and Security Interest of India (CERSAI)

Cashew Export Promotion Council of India (CEPCI)

Chemical and Allied Products Export Promotion Council (CAPEXIL)

Council for Leather Exports

Customs Excise and Service Tax Appellate Tribunal (CESTAT)

E

Engineering Export Promotion Council (EEPC)

Export Credit Guarantee Corporation of India Limited (ECGC)

Export Inspection Council (EIC)

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F

Federation of Indian Export Organisations (FIEO)

G

Gem and Jewellery Export Promotion Council (GJEPC)

I

Indian Diamond Institute

Indian Institute of Foreign Trade (IIFT)

Indian Institute of Packaging (IIP)

Indian Rubber Manufacturers Research Association (IRMRA)

Indian Telephone Industries Limited (ITI Limited)

India Trade Promotion Organization (ITPO)

Income Tax Appellate Tribunal (ITAT)

M

Marine Products Export Development Authority (MPEDA)

Minerals and Metals Trading Corporation Limited (MMTC)

N

National Scheduled Tribes Finance and Development Corporation (NSTFDC)

National Institute of Securities Markets (NISM)

National Backward Classes Finance & Development Corporation (NBCFDC)

National Centre for Trade Information (NCTI)

National Institute of Design

National Numbering Organisation (EAN-India)

National Productivity Council (NPC)

National Manufacturing Competitiveness Council (NMCC)

National Institute of Financial Management

P

Pension Fund Regulatory and Development Authority

Plastics Export Promotion Council (PLEXCONCIL)

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Project Exports Promotion Council of India (PEPC)

S

Sports Goods Export Promotion Council (SGEPC)

State Trading Corporation of India Limited (STCI)

Securities and Exchange Board of India

Stock Holding Corporation of India Ltd (SHCIL)

What is Prepaid-Payment Instrument?

Goods or services can be purchased in a prepaid manner by paying the money through cash,

credit card or debit from a bank account beforehand and storing it at a virtual place. Payment is

done against that amount when required.

Presently, they are be issued as smart cards, magnetic stripe cards, internet accounts, internet

wallets, internet purse, mobile accounts, mobile wallets, mobile purse and paper vouchers.

Types of Prepaid-Payment Instruments

The pre-paid payment instruments are generally of four types: (1) closed-system payment instruments

(2) Semi-Closed system payment instruments (3) Semi-Open system payment instruments and (4) Open

system payment instruments.

Closed System Payment Instruments: These are payment instruments generally issued by

business establishments for use at that establishment only or for availing services from a service

provider. These instruments are generally not re-loadable and do not permit cash withdrawal.

Examples of such instruments are gift vouchers issued by certain merchant establishments and

telephone calling cards. The mobile pre-paid value may also be considered as closed-system

prepaid payment instrument though they can be used for availing additional value added

services.

Semi-Closed System Payment Instruments: These are payment instruments which are

redeemable at a group of establishments associated with a particular shopping mall, tourist

resorts etc. or at establishments and service providers listed out by the issuer. These

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instruments are generally issued by third party service providers. These instruments can be

issued in re-loadable or non-reloadable formats but do not permit cash withdrawal.

Semi-open System Payment Instruments: These are payment instruments which can be used

for purchase of goods and services at any card accepting merchant locations (Point of sale

terminals). These instruments can be issued in re-loadable or non-reloadable formats but they

do not permit cash withdrawal. Examples of such cards are the gift cards issued by banks which

are operated and settled through recognized card companies.

Open System Payment Instruments: These are payment instruments which can be used for

purchase of goods and services. These instruments can be issued in re-loadable or non-

reloadable formats. These instruments also permit cash withdrawal at ATMs. Examples of such

cards are the Payroll cards and travel cards issued by banks which are operated and settled

through recognized card companies.

Norms for setting Up Prepaid-Payment Instruments

The Reserve Bank of India (RBI) on 3 December 2014 relaxed the norms for Pre-paid Payment

Instruments (PPI) and doubled the limit of PPI from 50000 rupees to one lakh rupees.

The move would help in achieving the objective of limiting cash transactions in the system.

Highlights of RBI norms on PPI

The maximum validity of gift cards has been enhanced from one year to three years. Other

provisions of PPI guidelines with respect to gift cards will continue.

RBI also allowed issue of multiple PPIs by banks from fully-KYC compliant bank accounts for

dependent or family members.

Only one card can be issued to one beneficiary.

The bank may put in place mechanisms to monitor and report suspicious transactions on these

PPIs to Financial Intelligence Unit India (FIU-IND).

The central bank also permitted banks to issue rupee denominated PPIs for visiting foreign

nationals and NRIs.

However, this would be subject to certain conditions like the cards can be issued by overseas

branches of banks in India directly or it can be issued by co-branding with the exchange

houses/money transmitters up to a maximum amount of 2 lakh rupees by loading from a KYC

compliant bank account.

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Such PPIs should be activated by the bank only after the traveller arrives in India and cash

withdrawal will be restricted to 50000 rupees per month.

The cards should be issued strictly for use in India and transactions should be settled in Indian

rupee.

Indian Currency

The Indian rupee symbol '`' (officially adopted in 2010) is derived from the Devanagari consonant "र"

(ra) and the Latin letter "R". The first series of coins with the rupee symbol was launched on 8 July 2011.

Currency paper is composed of cotton and cotton rag.

RBI issues all the bank notes except Rupees 1 Notes. These notes are issued by Ministry of Finance.

Recently RBI launched a website Paisa-Bolta-Hai to raise awareness of counterfeit or fake currency

among users of the Indian Rupees and also the citizen of India.

The main security features of current banknotes are:

Watermark - White side panel of notes has Mahatma Gandhi watermark.

Security thread - All notes have a silver or green security band with inscriptions (visible when

held against light) of Bharat in Hindi and "RBI" in English.

Latent image - On notes of denominations of Rs.20 and upwards, a vertical band on the right

side of the Mahatma Gandhi’s portrait contains a latent image showing the respective

denominational value numerally (visible only when the note is held horizontally at eye level).

Micro lettering - Numeral denominational value is visible under magnifying glass between

security thread and latent image.

Intaglio - On notes with denominations of INR5 and upwards the portrait of Mahatma Gandhi,

the Reserve Bank seal, guarantee and promise clause, Ashoka Pillar Emblem on the left and the

RBI Governor's signature are printed in intaglio (raised print).

Identification mark - On the left of the watermark window, different shapes are printed for

various denominations INR20: vertical rectangle, INR50: square, INR100: triangle, INR500: circle,

INR1,000: diamond). This also helps the visually impaired to identify the denomination.

Fluorescence - Number panels glow under ultraviolet light.

Optically variable ink - Notes of Rs.500 and Rs.1,000 denominations have their numerals printed

in optically variable ink. The number appears green when the note is held flat, but changes to

blue when viewed at an angle.

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See-through register - Floral designs printed on the front and the back of the note coincide and

perfectly overlap each other when viewed against light.

EURion constellation - A pattern of symbols found on the banknote helps software detect the

presence of a banknote in a digital image, preventing its reproduction with devices such as

colour photocopiers.

NOTE: The EURion constellation (also known as Omron rings) is a pattern of symbols incorporated into a

number of banknote designs worldwide since about 1996. It is added to help imaging software detect the

presence of a banknote in a digital image.

DIFFERENT KINDS OF NOTES

Genuine Notes: Such notes must have a water mark of Asoka Pillar, security thread and serial

number along with alphabet. They have distinctive colours.

Soiled notes: The currency note which has become dirty due to its use or may be in 2 pieces. No

portion of such note should be missing. These notes are accepted for exchange without any

restrictions by the banks.

Mutilated notes: Such currency notes that are composed of various pieces or they are cut notes

of which some portion is missing. These notes are exchanged only by the currency chest

branches of banks.

Single/double numbered notes: Notes up to Rs.5 are single numbered while the notes above

Rs.5 are double numbered notes.

RBI’S CLEAN NOTE POLICY

RBI had announced ‘Clean Note Policy’ in January, 1999.

For withdrawing soiled notes from circulation and pumping fresh notes into circulation, the RBI

introduced various changes in the system and procedures related to currency management

which include mechanization of the currency verification and processing as also shredding and

briquetting for destruction of soiled and mutilated notes.

Rules and Instructions Issued by RBI:

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Not to staple bank notes

To Tender soiled notes to the Reserve Bank in unstapled condition,

To use bands instead of staple pins,

To issue only clean notes to members of public,

To open select currency chest branches on Sundays to provide exchange facility to members of

public all over the county,

To provide unrestricted facility for exchange of soiled and mutilated notes to members of public.

Banks should sort notes into re-issuables and non-issuables, and issue only clean notes to public.

Soiled notes in unstapled condition may be tendered at RBI in inward remittances through

Currency Chests

Banks should stop writing of any kind on watermark window of bank notes.

Coins of 25 Paise and Below – Withdrawal

Govt, of India has decided to withdraw the coins of 25 paise and below from circulation from

June 30, 2011. Coins of 25 paise and below are not accepted for exchange at the bank branches

from July 1, 2011 onward.

Withdrawal of Pre-2005 Notes:

Reserve Bank of India decided to withdraw from circulation all banknotes issued prior to 2005 as

they have fewer security features as compared to banknotes printed after 2005.

The withdrawal exercise is in conformity with the standard international practice of not having

multiple series of notes in circulation at the same time.

The RBI has already been withdrawing these banknotes in a routine manner through banks.

It is estimated that the volume of such banknotes (pre-2005) in circulation is not significant

enough to impact the general public in a large way and the members of public may exchange

the pre-2005 series banknotes at bank branches at their convenience.

The deadline for exchanging pre-2005 currency notes of various denominations, including

Rs.500 and Rs.1,000, has been extended by another six months till June 30, 2015.

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What is Retail Banking?

Retail banking refers to the dealing of commercial banks with individual customers.

ACCOUNTS

Current A/c

Current account is one of the two component accounts of the balance of payments of a nation.

It records the trade of goods and services of an economy with other countries of the world.

Savings A/c

Salary A/c

It is usually opened by the Company, where your salary is deposited. You can maintain ZERO

Balance.

Minor A/c

Minimum 10 years old to open this account.

Recurring A/c

It can be opened by any Individual for regular fixed amount every month into their Recurring

Deposit account and earn interest at the rate applicable to Fixed Deposits.

Fixed or Term Deposits A/c

A type of savings account or certificate of deposit where deposits are made for a specified

period of time and that pay out a fixed rate of interest.

Joint A/c

Can be opened by two or more individuals.

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Basic Savings Bank A/c

Zero Balance A/c

Pension A/c

Zero Balance, usually opened for Pension purpose.

OTHER PRODUCTS

Bancassurance

Banks partners with Insurance Company to sell Insurance to Bank Customers. United Bank of

India has with TATA Life Insurance.

Cheque

Demand Draft

Mobile Banking

Usually operated by Customer through their Tablets or Phones via Application By Bank.

CANMOBILE is an Android/Windows/iOs App by Canara Bank.

M-Wallet

Prepaid wallet can be used for various payments.

Tele Banking

Banking done by calling up Bank’s Toll-Free Number.

Locker

CARDS

Debit Card

Credit Card

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ATM Card

Travellers Card

Used for travelling abroad.

LOANS

Home Loan

Personal Loan

Pension Loan

Car Loan

Vehicle Loan

Loan Against Gold

Loan against Mortgage

Educational Loan

Online Products

Internet Banking

Bill Payments

Fund Transfer

NEFT, RTGS

Tax Payments

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Top 10 Current Affairs of 2014

10. Formation of Telengana

Telengana Formation or Formally known as Andhra Pradesh Reorganisation Act, 2014 is an Act of Indian

Parliament proclaiming the bifurcation of the Andhra Pradesh state into two states, Telangana and the

residuary Andhra Pradesh. The Act consists of all aspects of division of assets and liabilities, and finalizes

the boundaries of the proposed new states and the status of Hyderabad. The Bill was previously rejected

by Andhra Pradesh Legislative Assembly on January 30, 2014.

The bill was passed in the Lok Sabha on 18 February 2014 and in the Rajya Sabha on the 20 February

2014. The bill was attested by the President of India, Pranab Mukherjee on 1 March 2014 and published

in the official Gazette. The appointed day of the new states was 2 June 2014.

9. Kashmir Floods

In September 2014, the Kashmir region witnessed disastrous floods across majority of its districts caused

by torrential rainfall. The Indian administrated Jammu and Kashmir, as well as Azad Kashmir, Gilgit-

Baltistan and Punjab in Pakistan, were affected by these floods. By September 24, 2014, nearly 277

people in India and 280 people in Pakistan had died due to the floods.

Home Secretary of India Anil Goswami said 82 aircraft and helicopters, 10 battalions of Border Security

Force, 329 columns of Indian Army and 300 boats were used in the rescue operations. According to

home secretary, 10 VSAT systems were air lifted to restore critical telecom towers and a satellite link

from Bardula had been provided for crucial communication.

Prime Minister of India, Narendra Modi offered an assistance of `745 crore (US$120 million) to the state

government, this was in addition to `1100 crore (US$170 million) already earmarked for the disaster.

8. GST

What is GST?

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Goods and Services Tax -- GST -- is a comprehensive tax levy on manufacture, sale and consumption of

goods and services at a national level.

Through a tax credit mechanism, this tax is collected on value-added goods and services at each stage of

sale or purchase in the supply chain.

The system allows the set-off of GST paid on the procurement of goods and services against the GST

which is payable on the supply of goods or services. However, the end consumer bears this tax as he is

the last person in the supply chain.

Experts say that GST is likely to improve tax collections and boost India's economic development by

breaking tax barriers between States and integrating India through a uniform tax rate.

What are the benefits of GST?

Under GST, the taxation burden will be divided equitably between manufacturing and services, through

a lower tax rate by increasing the tax base and minimizing exemptions.

It is expected to help build a transparent and corruption-free tax administration. GST will be is levied

only at the destination point, and not at various points (from manufacturing to retail outlets).

Currently, a manufacturer needs to pay tax when a finished product moves out from a factory, and it is

again taxed at the retail outlet when sold.

How will it benefit the Centre and the States?

It is estimated that India will gain $15 billion a year by implementing the Goods and Services Tax as it

would promote exports, raise employment and boost growth. It will divide the tax burden equitably

between manufacturing and services.

What are the benefits of GST for individuals and companies?

In the GST system, both Central and State taxes will be collected at the point of sale. Both components

(the Central and State GST) will be charged on the manufacturing cost. This will benefit individuals as

prices are likely to come down. Lower prices will lead to more consumption, thereby helping companies.

7. Jayalalitha Asset Case

Jayalalithaa Jayaram, who is a former Chief Minister of Tamil Nadu convicted for misusing her office

during her tenure of 1991-96 to amass properties worth `66.65 crores.

Jayalalithaa was accused of misusing her office during her first tenure as chief minister during 1991-96

to amass properties worth `66.65 crores and depositing the amount in her proxy accounts.

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A raid in her Poes garden residence in 1997 recovered 800 kg (1,800 lb) silver, 28 kg (62 lb) gold, 750

pairs of shoes, 10,500 sarees, 91 watches and other valuables. The valuables were kept in a vault in

Reserve Bank of India in Chennai. The opposition party petitioned to request the court to take the

control of the assets, but the special judge John Michael Cunha who inspected the assets on 7 January

2014, ordered the assets to be transferred to Bangalore.

The judgement of the case was pronounced on 27 September 2014 in the Special Court which convicted

all four including Jayalalithaa guilty. Chaos prevailed outside the court premises as well in Tamil Nadu on

account of the judgement getting delayed from 11 am to 3 pm. There was further confusion when the

sentence was not announced till 5 p.m. Soon after the judgement, violence erupted across Tamil Nadu.

Sporadic incidents of violence were reported across the state initiated by the AIADMK party men and

loyalists. Most shops, restaurants, malls and movie halls remained closed, while public transport was

totally stopped.

Subsequently, at a meeting of AIADMK, O. Panneerselvam was chosen as the Chief Minister of Tamil

Nadu.

On 17 October 2014, Supreme Court granted two months bail and suspended her sentence in

Disproportionate Assets Case.

6. Saradha Group Financial Scam

A major financial scam and political scandal caused by the collapse of a Ponzi scheme run by Saradha

Group, a consortium of over 200 private companies that was believed to be running collective

investment schemes popularly but incorrectly referred to as chit funds in Eastern India.

The group collected around `200 to `300 billion (US$4–6 billion) from over 1.7 million depositors before

it collapsed in April 2013. In the aftermath of the scandal, the State Government of West Bengal where

the Saradha Group and most of its investors were based instituted an inquiry commission to investigate

the collapse. The State government also set up a fund of `5 billion (US$79 million) to ensure that low-

income investors were not bankrupted.

The Central Government through the Income Tax Department and Enforcement Directorate launched a

multi-agency probe to investigate the Saradha scam and similar Ponzi schemes. In May 2014, the

Supreme Court of India, citing inter-state ramifications, possible international money laundering, serious

regulatory failures and alleged political nexus, transferred all investigations into the Saradha Scam and

other Ponzi schemes to the Central Bureau of Investigation (CBI), India's federal investigative agency.

Many prominent personalities were arrested for their involvement in the scam including two Members

of Parliament (MP) - Kunal Ghosh and Srinjoy Bose, former West Bengal Director General of Police Rajat

Majumdar, a top football club official Debabrata Sarkar, Sports and Transport minister in the West

Bengal Government – Madan Mitra.

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5. Recognition of Transgender in India

National Legal Services Authority (NALSA) v. Union of India is a landmark decision by the Supreme Court

of India, declared transgenders to be the 'third gender', affirmed that the fundamental rights granted

under the Constitution of India will be equally applicable on the transgenders and gave them the right to

self-identification of gender as male, female or third-gender.

Moreover, the court also held that the transgenders to be treated as socially and economically backward

classes and will be granted reservation in admissions in educational institutions and jobs.

4. Swachh Bharat Abhiyan

It is a national campaign by the Government of India, covering 4041 statutory towns, to clean the

streets, roads and infrastructure of the country.

This campaign was officially launched on 2 October 2014 at Rajghat, New Delhi, where Prime Minister

Narendra Modi himself cleaned the road. It is India's biggest ever cleanliness drive and 3 million

government employees and school and college students of India participated in this event.

Earlier it was known as Nirmal Bharat Abhiyaan. Originally launched in 1999.

The government will be launching a nationwide real-time monitoring system for toilets constructed

under the Swachh Bharat Abhiyan. With this system the government aims to attain a 100% open

defecation free India by 2019.

The components of the programme are:

a) Construction of individual sanitary latrines for households below the poverty line with subsidy

(80%) where demand exists.

b) Conversion of dry latrines into low-cost sanitary latrines.

c) Construction of exclusive village sanitary complexes for women providing facilities for hand

pumping, bathing, sanitation and washing on a selective basis where there is not adequate land

or space within houses and where village panchayats are willing to maintain the facilities.

d) Setting up of sanitary marts.

e) Total sanitation of villages through the construction of drains, soakage pits, solid and liquid

waste disposal.

f) Intensive campaign for awareness generation and health education to create a felt need for

personal, household and environmental sanitation facilities

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Specific objectives are:

Elimination of open defecation

Conversion of insanitary toilets to pour flush toilets

Eradication of manual scavenging

100% collection and scientific processing/disposal/reuse/recycling of municipal solid waste

A behavioural change in people regarding healthy sanitation practices

Generation of awareness among citizens about sanitation and its linkages with public health

Supporting urban local bodies in designing, executing and operating waste disposal systems

Facilitating private-sector participation in capital expenditure and operation and maintenance

costs for sanitary facilities

3. MAKE IN INDIA

Make in India is an international marketing strategy, conceptualized by the Prime Minister of India,

Narendra Modi on 25 September 2014 to attract investments from businesses around the world, and in

the process, strengthen India's manufacturing sector.

The campaign has been concentrated to fulfill the purpose of job creation, enforcement to secondary

and tertiary sector, boosting the national economy, converting India to a self-reliant country and to give

the Indian economy global recognition.

The 'Make in India' also attempts to enforce the inflow of FDI in the country and improve services by

partial privatization of loss-making government firms. The campaign is completely under control of the

Central Government of India.

The major objective behind this initiative is to focus upon the heavy industries and public enterprises

while generating employment, empowering secondary and tertiary sector and utilizing the human

resource present in India.

The most common example is our website exampundit.in which has an .in domain which is a made in

India.

Japan will contribute to Prime Minister Narendra Modi's 'Make in India' initiative to support India in

becoming a base of economic growth for the Indo-Pacific region and the world.

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2. Pradhan Mantri Jan Dhan Yojana

It is a scheme for comprehensive financial inclusion launched by the Prime Minister of India, Narendra

Modi on 28 August 2014 He had announced this scheme on his first Independence Day speech on 15

August 2014.

Run by Department of Financial Services, Ministry of Finance, on the inauguration day, 1.5 Crore (15

million) bank accounts were opened under this scheme.

By 28 January 2015, 12.58 crore accounts were opened, with around `10590 crore (US$1.7 billion) were

deposited under the scheme, which also has an option for opening new bank accounts with zero

balance.

Under the scheme:

1. Account holders will be provided zero-balance bank account with RuPay debit card, in

addition to accidental insurance cover of `1 lakh(to be given by 'HDFC Ergo').

2. Those who open accounts by January 26, 2015 over and above the `1 lakh accident,

they will be given life insurance cover of `30,000(to be given by LIC).

3. After Six months of opening of the bank account, holders can avail `5,000 overdraft

from the bank.

4. With the introduction of new technology introduced by National Payments Corporation

of India (NPCI), a person can transfer funds, check balance through a normal phone

which was earlier limited only to smart phones so far.

5. Mobile banking for the poor would be available through National Unified USSD Platform

(NUUP) for which all banks and mobile companies have come together

The scheme has been criticized by many experts from the banking sector as an effort to please voters

that has created unnecessary work-burden on the public-sector banks.

The Guinness World Records has recognised the achievements made under the PMJDY and has given a

certificate stating that the most bank accounts opened in one week as part of the Financial Inclusion

Campaign is 18,096,130 and was achieved by the department of financial services, government of India

from Aug 23-Aug 29, 2014.

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1. Mars Orbiter Mission

Mangalyaan is a spacecraft orbiting Mars since 24 September 2014. It was launched on 5 November

2013 by the Indian Space Research Organisation (ISRO).

It is India's first interplanetary mission and ISRO has become the fourth space agency to reach Mars,

after the Soviet space program, NASA, and the European Space Agency. It is the first Asian nation to

reach Mars orbit, and the first nation to do so on its first attempt.

The Mars Orbiter Mission probe lifted-off from the First Launch Pad at Satish Dhawan Space Centre

(Sriharikota Range SHAR), Andhra Pradesh, using a Polar Satellite Launch Vehicle (PSLV) rocket C25.

The MOM mission concept began with a feasibility study in 2010, after the launch of lunar satellite

Chandrayaan-1 in 2008. The government of India approved the project on 3 August 2012, after the

Indian Space Research Organisation completed `125 crore (US$20 million) of required studies for the

orbiter. The total project cost may be up to `454 crore (US$71 million). The satellite costs `153 crore

(US$24 million) and the rest of the budget has been attributed to ground stations and relay upgrades

that will be used for other ISRO projects.

The total cost of the mission was approximately `450 Crore (US$73 million), making it the least-

expensive Mars mission to date. The low cost of the mission was ascribed by K. Radhakrishnan, the

chairman of ISRO, to various factors, including a "modular approach", few ground tests and long (18-20

hour) working days for scientists.

Hollywood movie Gravity costed more that MOM and the Total Budget of Mom is equivalent to less

than a single bus ride for each of India's population of 1.2 billion.

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