Fiscal cliff

Fiscal cliff is a newly coined term in USA, referring to the effect of a number of laws which, if unchanged, could result in tax increases, spending cuts, and a corresponding reduction in the budget deficit beginning in 2013. These laws include tax increases due to the expiration of the so-called Bush tax cuts and across-the-board spending cuts under the Budget Control Act of 2011. The year-over-year changes for fiscal years 2012–13 include a 19.63% increase in tax revenue and 0.25% reduction in spending. The US Congressional Budget Office estimates that allowing certain laws on the books during 2012 to expire or take effect in 2013 (the baseline scenario) would cut the 2013 deficit approximately in half and significantly reduce the trajectory of future deficits and debt increases for the next decade and beyond. However, the 2013 deficit reduction would adversely impact the economy in the short-run. On the other hand, if Congress acts to extend current policies (the alternative scenario), deficits and debt will rise rapidly over the next decade and beyond, slowing the economy over the long run and dramatically increasing interest costs. Many experts have argued that the U.S. should avoid the fiscal cliff while taking steps to bring the long-term deficit and debt trajectory under control. For example, economist Paul Krugman recommended that the US focus on employment in the short-run, rather than the deficit. Federal Reserve Chair Ben Bernanke emphasized the importance of balancing long-term deficit reduction with actions that would not slow the economy in the short-run. Charles Konigsburg, who directed the bi-partisan Domenici-Rivlin deficit reduction panel, advocated avoiding the fiscal cliff while taking steps to reduce the budget deficit over time. He recommended the adoption of ideas from deficit panels such as Domenici-Rivlin and Bowles-Simpson that accomplish these two goals.

Cheque Truncation System (CTS)

Cheque Truncation System (CTS) is a process that will give banks the freedom to avoid transporting a physical cheque from the presenting bank (where the cheque is deposited) to the drawee bank (where it is issued). As per the CTS, instead of a physical cheque, an electronic image of the cheque will be sent to the drawee bank. Of course, this image will have all the necessary information needed to process the cheque. Right from the nine-digit MICR code, the date of the cheque and the details of the presenting bank, like branch, etc.

Banks get 3 more months to implement Basel III norms

 The Reserve Bank of India has extended the date for implementation of Basel III, the global capital norms for banks, by three months to April 1.

“The Reserve Bank of India has rescheduled the start date for implementation of Basel III to April 1, 2013 from January 1, 2013,” the central bank said.

The RBI, however, did not provide reasons behind the rescheduling.

The move, experts said, will provide additional time to some banks that need to enhance their capital base in line with the new norms for strengthening the resilience of the global banking system.

The RBI further said that India will closely monitor the progress on Basel III implementation in other countries, particularly the major ones, who are members of the Basel Committee.

The RBI had issued guidelines on the implementation of Basel III capital regulation in India in May this year. These guidelines were to be implemented from January 1, 2013 in a phased manner and were to be fully implemented by March 2018.

As per the new global norms, banks will have to hold core capital of at least 7 per cent of risk weighted assets by 2018.

In September, the RBI Governor, D. Subbarao, had said that Indian banks will require an additional capital of Rs 5 lakh crore to meet the new global banking norms.

Of the total Rs 5 lakh crore, equity capital will be Rs 1.75 lakh crore, while Rs 3.25 lakh crore will have to come as the non-equity portion.

The government, which owns 70 per cent of the banking system, alone will have to pump in Rs 90,000 crore equity to retain its shareholding in the public sector banks at the current level to meet the norms.

The Basel Committee recently said that the 11 member jurisdictions including India, Australia, Canada, China and Japan, have published the final set of Basel III regulations effective from the start date of January 1, 2013.

Seven other jurisdictions including the European Union and the US have issued draft regulations, and have indicated that they are working towards issuing final versions as quickly as possible. 

First Indian Bank to launch the e-Gift card facility

Axis Bank, India’s third largest private sector Bank announced the launch of ‘Axis Bank e- Gift Card’, thereby becoming India’s first bank to offer to all bank’s domestic customers an option to buy an e- Gift Card. The Axis Bank e- Gift Card offers customers an alternate channel through which they can buy a gift card for their dear ones. The facility of e- Gift Card can be availed at www.gogiftacard.com where a
customer can buy and send a card of his choice by either e-mailing it or sending it via SMS to their loved ones. Domestic customers can purchase these online e- Gift Cards using their credit / debit card issued by their respective bank. All purchase transactions shall be limited to sites that support verified by Visa and MasterCard Secure Code for two factor authentication.

Zero Balance Account for Beneficiaries of Government Programmes

The Reserve Bank of India (RBI) has advised all Scheduled Commercial Banks (SCBs) on 10.8.2012 to offer a ‘Basic Savings Bank Deposit Account’ and also convert existing basic banking ‘no-frills’ accounts’ to ‘Basic Savings Bank Deposit Account’. Such accounts do not have the requirement of any minimum balance and comes with the facility of ATM Card or ATM-cum-Debit Card. However, the holders of such accounts are not eligible to open any other savings bank deposit account in that bank. Under Financial Inclusion, banks have already opened 3.16 crore accounts by March 31, 2012.

Chandrashekhar panel to frame rules for foreign investors

Market regulator SEBI on December 12 said it has appointed a committee under ex-Cabinet secretary K M Chandrashekhar to frame a single set of guidelines for all types of foreign investors.

The committee will suggest ways to simplify the investment process for all overseas entities like foreign institutional investors, foreign venture capital investors (FVCIs), qualified financial/institutional investors (QFIs), and NRIs, among others, and also to strengthen surveillance over them.

NBFCs may need prior RBI nod for ownership change

Non-banking financial companies (NBFC) would need RBI’s prior approval before making changes in their ownership control, a draft guideline of the central bank said on December 12.

The draft guidelines, based on the Usha Thorat Committee report, also seek to make mandatory for all deposit-taking NBFCs to obtain credit rating.

Appointment of CEOs of NBFCs with asset size of Rs.1,000 crore and above would require the RBI approval, it added.

“In the interest of good governance and the sensitivities associated with NBFCs... such companies, whether listed or not, will need to comply with Clause 49 of SEBI’s listing agreement on corporate governance including induction of independent directors,” the draft said.

The draft norms said existing unrated NBFCs-D will be given one year to get rated, “thereafter, they would not be allowed to accept any fresh deposits or renew existing deposits, till they get themselves rated,” it said.

On change in control or transfer of shareholding, the draft said that all registered NBFCs should take prior approval from the RBI where there is a change in control and increase of shareholding to the extent of 25 per cent by individuals or groups, directly or indirectly.

Regarding non-performing assets (NPAs), the RBI has proposed that asset classification and provisioning norms should be made similar to that of banks for all registered NBFCs irrespective of the size.

At present, the period for classifying loans into NPAs in case of NBFCs is higher at 180/360 days compared to 90 days for banks.

The RBI has sought stakeholder comments on the draft norms by January 10.

Reserve Bank tightens norms for issue of debit cards

The Reserve Bank of India (RBI) on December 12 stipulated that debit cards would be issued to customers having Savings Bank and Current Accounts but not to cash credit or loan account holders.

Banks may issue only online debit cards, including co-branded debit cards where there is an immediate debit to the customers’ account, and where straight through processing is involved, RBI said.

“Banks are, henceforth, not permitted to issue offline-debit cards. Banks which are now issuing offline debit cards may conduct a review of their offline debit card operations and discontinue operations of such cards within a period of six months from the date of this circular,” RBI said in a notification to all banks.

Banks were also asked to ensure that customers were duly informed regarding switching over to online debit cards. However, till such time as offline cards were phased out, the outstanding balances / unspent balances stored on the cards would be subject to computation of reserve requirements.

Banks should undertake review of their operations/issue of debit cards on half-yearly basis. The review would include, inter-alia, card usage analysis, including cards not used for long durations due to their inherent risks.

Banking Glossary

ATM
An automated teller machine (ATM) is a machine in which a customer can use his card along with PIN to get cash, information and other services.
Bank Guarantee
Bank guarantee is a promise by a bank on behalf of its customer to a third party to pay an amount specified in the guarantee deed in case the customer fails to perform the obligation as stipulated in the deed.
Banking Ombudsman
Banking Ombudsman is an independent dispute resolution authority set up by the Reserve Bank of India to redress customer complaints against deficiency in certain banking services.
Bills
Bills are financial negotiable instruments such as Bills of Exchange or Promissory Notes. Bill of Exchange is issued by a seller to his buyer directing him to make payment for the goods supplied/ services rendered. Bill in the form of a promissory note is issued by a buyer to his seller undertaking to make payment for the goods received/ services rendered.
Bill Purchase / Discounting
Bill purchase / discounting are modes of extending credit to the seller of goods who has raised demand / usance bill of exchange. Demand bills are purchased and usance bills are discounted.
Card
Card is a general term for any plastic card, which a customer may use to pay for goods and services or to withdraw cash. In this Code, it includes ATM/ Smart/Debit/Credit cards.
Cash Credit/Overdraft
Cash credit/overdraft is a form of credit facility in which a borrower is sanctioned a pre- arranged limit with the freedom to borrow as much money as he requires. In case of flow of credit to the account, he can withdraw afresh subject to the limit sanctioned. As such, the limit works as a revolving line of credit. Bank charges interest on the outstanding balances.
Cash losses
Cash losses mean net losses minus depreciation.
Cheque Collection Policy
Cheque Collection Policy refers to the policy followed by a bank in respect of various local and outstation cheques and instruments deposited with the bank for credit to an account.
Compensation Policy
Compensation Policy refers to the policy followed by a bank for compensating its customers for the financial losses incurred by them (the customers) due to the acts of omission or commission on the part of the bank.
Credit facilities/ Bank Loan
Credit facilities from the bank may be in the form of a term loan or in the form of overdraft or cash credit that is extended by a bank to its customer for a specified period and he is charged interest on the outstanding balances.
Credit Information Companies (CICs)
Credit Information Companies are companies formed and registered under the Companies Act, 1956 and which have been granted a Certificate of Registration by the Reserve Bank. These companies are empowered to collect data on credit from credit institutions who are its members and disseminate
the same after analysis, to its members and specified users.
Current Account
A form of demand deposit wherefrom withdrawals are allowed any number of times depending upon the balance in the account or up to a particular agreed amount.
Customer
An MSE or its authorised representative who has an account with a bank or who avails of other products/ services from a bank.
Deceased account
A Deceased account is a deposit account in which case either the single account holder has deceased or in case of joint accounts one or more of joint account holders has/have deceased.
Demat accounts
A Demat account refers to dematerialised account and is an account in which the stocks of investors are held in electronic form.
Deposit Accounts
• “Savings deposits” means a form of demand deposit which is subject to restrictions as to the number of withdrawals as also the amounts of withdrawals permitted by the bank during any specified period.
• “Term deposit” means a deposit received by the bank for a fixed period withdrawable only after the expiry of the fixed period and includes deposits such as Recurring/Short Deposits/Fixed Deposits/ Monthly Income Certificate/Quarterly Income Certificate etc.
• “Notice Deposit” means term deposit for specific period but withdrawable on giving at least one complete banking day’s notice.
Electronic Clearing Service
The Electronic Clearing Service (ECS) is an online transmission system which permits the electronic transmission of payment information by the banks/branches to the Automated Clearing House (ACH) via a communication network.
Electronic Funds Transfer
Electronic Funds Transfer (EFT) is a scheme introduced by RBI to help banks to offer their customers facility of transfer of funds from account to account from one bank branch to another in places where EFT service is available.
Equity
Equity means a part of capital of a corporate entity that is represented by the shares of the company whether in physical or dematerialised form.
Factoring
Factoring is a financial option for the management of receivables. It is the conversion of credit sales into cash.
Government bond
Government bond means a security, created and issued by the Central or State Government for raising a public loan.
Guarantee
A promise given by a person.
Improper conduct of account 
Issuing of cheque on the account without sufficient balance in the account; frequent returns of inward / outward cheques in the account; account has been overdrawn, or the account holder has exceeded its agreed credit limit; non compliance of KYC procedure; fraud/malfeasance or fraudulent intention exhibited by the customer; suspicious transactions/ engagement in money laundering activity under the scope of PMLA Act, 2002 etc. are instances of improper conduct of account.
Letter of Credit
A letter of credit is a document issued by a bank, which usually provides an irrevocable undertaking for payment to a beneficiary against submission of documents as stated in the Letter of Credit.
Mail
Mail is a letter in a physical or electronic form.
Merchant Services
Merchant services generally refer to merchant accounts allowed to trading and service establishments for acceptance of payments through credit/ debit cards. The cards may be accepted over the counter through card terminals i.e. Point of Sale (POS) machines or over phone or through internet.
Micro and Small Enterprises
Micro and Small Enterprises are those enterprises engaged in manufacturing or rendering services.
A micro enterprise is defined as:
An enterprise engaged in the manufacture or production of goods pertaining to any industry where the investment in plant and machinery does not exceed Rs. 25 lakh
or
An enterprise engaged in rendering services where investment in equipment does not exceed Rs. 10 lakh.
A small enterprise is defined as :
An enterprise engaged in manufacture or production of goods pertaining to any industry where the investment in plant and machinery is more than Rs. 25 lakh but does not exceed Rs. 5 crore
or
An enterprise engaged in rendering services where investment in equipment is more than Rs. 10 lakh but does not exceed Rs. 2 crore.
National Electronic Funds Transfer
National Electronic Funds Transfer (NEFT) system is a nation-wide funds transfer system to facilitate transfer of funds from one bank branch to any other bank branch in the country.
Net worth
Net worth means sum of Capital and free reserves minus accumulated losses.
Nomination Facility
The nomination facility enables the bank to: make payment to the nominee of a deceased depositor, of the amount standing to the credit of the depositor, return to the nominee, the articles left by a deceased person in the bank’s safe custody, release to the nominee of the hirer, the contents of a safety locker, in the event of death of the hirer.
Non-Fund based facility
Non-fund based facilities are such facilities extended by banks which do not involve outgo of funds from the bank when the customer avails the facilities but may at a later date crystallise into financial liability if the customer fails to honour the commitment made by availing these facilities. Non-fund based facilities are generally extended in the form of Bank Guarantees, Acceptances and Letters of Credit.
Non Performing Asset
A Non Performing Asset (NPA) is a loan or an advance where
i) interest and/ or installment of principal remain overdue for a period of more than 90 days in respect of a term loan.
ii) the account remains ‘out of order’ in respect of an Overdraft/Cash Credit (OD/CC).
iii) the bill remains overdue for a period of more than 90 days in the case of bills purchased or discounted.
Originator
An organisation which collects payments from a customer’s account in line with customer’s instructions.
Other Security Information
A selection of personal facts and information (in an order which the customer knows), which may be used for identification when using accounts.
Out-of-date (stale) cheque
A cheque, which has not been paid because the date written on the cheque is a date exceeding three months from the time of its presentation.
‘Out of Order’ status
An account should be treated as ‘out of order’ if the outstanding balance remains continuously in excess of the sanctioned limit/drawing power. In cases where the outstanding balance in the principal operating account is less than the sanctioned limit/drawing power, but there are no credits continuously for 90 days as on the date of Balance Sheet or credits are not enough to cover the interest debited during the same period, these accounts should be treated as ‘out of order’.
Overdue
Any amount due to the bank under any credit facility is ‘overdue’ if it is not paid on the due date fixed by the bank.
PAN
The Permanent Account Number (PAN) is an all India unique Number having ten alphanumeric characters allotted by the Income Tax Department, Government of India. It is issued in the form of a laminated card. It is permanent and will not change with change of address of the assessee or change of Assessing Officer.
Password
A word or a set of numbers or an alphanumeric combination for an access code, which the customer has chosen, to allow him to use a phone or Internet banking service. It is also used for identification.
Payment and Settlement System
Payment and Settlement System means financial system creating the means for transferring money between suppliers and user of funds usually by exchanging debits or credits among financial institutions.
PIN
A confidential number, use of which along with a card allows customers to pay for articles/services, withdraw cash and use other electronic services offered by the bank.
Real Time Gross Settlement
The acronym ‘RTGS’ stands for Real Time Gross Settlement. RTGS system offers the fastest means of transfer of funds through banking channel. Settlement of transactions under RTGS takes place on one-to-one basis, which is termed as ‘Gross’ settlement and in ‘real time’ i.e. without any waiting period.
Reasonable
Governed by or being in accordance with reason and sound thinking; being within the bounds of common sense; not excessive or extreme.
Repossession
Repossession is the process by which a creditor with a loan secured on house or goods (e.g. car) takes possession of the security, if the debtor does not repay as per the terms of the loan agreement.
Rehabilitation Package
Rehabilitation package is the package drawn for the rehabilitation of a sick unit. The package has to be drawn in accordance with the RBI stipulations and it usually consists of
i) Working Capital with relaxation in the rate of interest in terms of regulatory guidelines
ii) Funded Interest Term Loan
iii) Working Capital Term Loan
iv) Term Loan
v) Contingency Loan Assistance
Smart Cards
A smart card is a plastic card about the size of a credit card, with an embedded microchip which can process data. It provides a secure way of identification, authentication and storage of data. It can be used for telephone calling, electronic cash payments, and other applications.
Security
Represents assets used as support for a loan or other liability. In the event of the borrower defaulting on the loan, the lender bank can claim these assets in lieu of the sum owed.
Primary security is the asset created out of the credit facility extended to the borrower and / or which is directly associated with the business / project of the borrower for which the credit facility has been extended.
Collateral security is any other security offered for the said credit facility. For example, hypothecation of jewellery, mortgage of house etc. Services
i) In respect of small and micro service enterprises, services refer to small road and water transport operators, small business, professional and self-employed persons, and all other service enterprises.
ii) Services rendered by the banks include various facilities like remittance (issue of DDs, MTs, TTs etc), receipt and payment of cash, exchange of notes and foreign exchange etc. provided by the banks to the customers.
Sick Unit
Sick unit refers to a unit whose account has remained substandard for more than six months or there has been erosion in net worth due to accumulated cash losses to the extent of 50% of the net worth during the previous accounting year and the unit has been in commercial production for at least
two years.
Substandard
A substandard asset would be one, which has remained NPA for a period less than or equal to 12 months.
Tariff Schedule
The schedule containing charges levied by a bank on the products and services offered by it to its customers.
Unpaid Cheque
This is a cheque, which is returned ‘unpaid’ (bounced) by the drawee bank.

Banking Codes and Standards Board of India

In November 2003, RBI constituted the Committee on Procedures and Performance Audit of Public Services under the Chairmanship of Shri S.S.Tarapore (former Deputy Governor) to address the issues relating to availability of adequate Banking Services to common man. The mandate to the Committee included identification of factors that inhibited the attainment of best customer services and suggesting steps to improve the quality of banking services to individual customers. The Committee felt that in an effort to continuously upgrade the package of services that banks offered to their customers there was a need of benchmarking of such services. After in depth study at the grass root level the Committee concluded that there was an institutional gap for measuring the performance of banks against a bench mark reflecting the best practices (Code and Standards). Therefore, the Committee recommended setting up of the Banking Codes and Standards Board of India broadly on the lines of Banking Codes and Standards Board functioning in U.K.

Among the existing institutional structures, the Scheme of Banking Ombudsman, which has been functioning for quite some time, does not look into systemic issues with a view to enforcing a prescribed quality of service. Ideally, such a function should be performed by a Self Regulatory Organisation (SRO) but in view of the existing framework of the banking sector in India, it was felt that an independent, autonomous Board will be best suited for the function. Therefore, Dr. Y.V. Reddy, Governor, Reserve Bank of India, in his Monetary Policy Statement (April 2005) announced setting up of the banking Codes and standards Board of India in order to ensure that comprehensive code of conduct for fair treatment of customers was evolved and adhered to.

The Banking Codes and Standards Board of India has been registered as a separate society under the Societies Registration Act, 1860. Therefore, it would function as an independent and autonomous body.

The Banking Codes and Standards Board of India is not a Department of the RBI. Reserve Bank has agreed to lend it financial support for a limited period. It is an independent banking industry watch dog to ensure that the consumer of banking services get what they are promised by the banks.

To ensure that the Board really functions as an autonomous and independent watchdog of the industry, the Reserve Bank also decided to extend financial support to the Board by way of meeting its full expenses for the first five years. This was to enable the Board to reach its economic critical mass that will make it truly independent in its functioning and take a view on any bank without its existence coming under any threat. On its part, RBI would derive supervisory comfort in case of banks which are members of the Board. In substance, the Board has been set up to ensure that common man as a consumer of financial services from the banking Industry is in a no way at a disadvantageous position and really gets what it has been promised.

RBI and the State Bank of Vietnam signed a Memorandum of Understanding

The Reserve Bank of India (RBI) on 16 November 2012 signed a Memorandum of Understanding (MoU) with the State Bank of Vietnam (SBV) for promoting greater co-operation and sharing supervisory information, between the two supervisors.

The MoU between the two banks was signed at Hanoi, Vietnam in the Headquarters of State Bank of Vietnam and by the Chief General Manager-In-Charge, Department of Banking Supervision, RBI- G. Jaganmohan Rao and Chief Inspector, Banking Supervision Agency, SBV- Nguyen Huu Nghia. The Deputy Governor, SBV- Dang Thanh Binh, and Indian Ambassador to Hanoi- Ranjit Rae graced this occasion of signing the MoU.

IndiaFirst Life launches Simple Benefit Plan

 Private insurer IndiaFirst Life Insurance launched ‘Simple Benefit Plan’ that offers dual benefits of a life cover and assured savings.

“Simple Benefit Plan offers an insurance cover on your life and additionally helps you earn and secure returns on the money that you invest with us, with premiums as low as Rs 174 per month.

“This plan is customised for people who want to save and at the same time secure their families from uncertainties of life, but do not have large disposable incomes.”

The plan term is between 10 to 20 years and offers a death benefit equal to the sum assured plus five times the annual premium, guaranteed amount and additional earning from bonuses.

It also provides tax benefits. Customers can also access their money easily during any emergency by availing a loan of up to 90 per cent of the surrender value.

IndiaFirst Life Insurance is a joint venture between two public sector banks — Bank of Baroda and Andhra Bank — along with UK’s leading risk, wealth and investment company Legal & General.

ATM network crosses 1-lakh mark

 The number of ATMs in India has crossed the one lakh mark, according to the National Payments Corporation of India (NPCI). All the banks put together have plans to install an additionally about one lakh ATMs over the next two years, raising the number of ATMs per million population to about 170 ATMs from 85.

As of October 2012 the total number of ATMs was 1,04,500. Public sector banks and the State Bank group with about 61,500 ATMs accounted for 59 per cent of the ATMs. The private sector and foreign banks put together have about 41,800 ATMs accounting for 40 per cent of the ATMs and the balance 1 per cent represents about 1,150 ATMs that have been deployed by co-operative banks/RRBs.

Almost all the ATMs in the country are part of NPCI’s National Financial Switch (NFS) network which facilitates routing of ATM transactions through inter-connectivity between the bank's systems, thereby enabling ATM/debit cardholders of the country to utilise the services in any ATM of a connected bank.

Nearly 200 million transactions are processed every month in NFS, of which 75 per cent are cash withdrawal transactions with an average ticket size of Rs 3,300. The balance 25 per cent transactions are non–financial transactions.

Besides cash withdrawal and balance Inquiry transactions, NFS supports other Value Added Services (VAS) such as pin change and mini statement through the ATMs. There are plans to increase the VAS through Card-to-Card transfer, cheque book request and statement request through the ATMs. 

Master card and Thomas Cook Came up Together for Travel Prepaid Cards

Thomas Cook (India), the integrated travel and travel-related financial services company on 1 November 2012 launched prepaid foreign exchange borderless prepaid card in collaboration with MasterCard Worldwide, a global payments and technology company.

The borderless prepaid card is going to enable travellers with an option of loading eight currencies on a single card that is US Dollars, British Pounds, Euro, Australian Dollars, Canadian Dollars, Swiss Francs, Singapore Dollars and Japanese Yen.

The borderless prepaid card is basically a multi-currency card which has a validity of five years. The person carrying the card is liable for getting the visiting country’s currency loaded on the card which enables him to save money and time.

The borderless prepaid card come up with an embedded chip and PIN which ensures  security and increased protection against counterfeiting and skimming card frauds.

The company is also offering a free replacement of the card within 72 hours if in case it is stolen or had been lost. It also has 24x7 global emergency assistance via toll free access in over 80 countries.

The master card came to this idea after a Consumer Segmentation Study in which they had found that around 36.7 per cent affluent Indians want to go overseas for a holiday.

The collaboration with MasterCard, is supposed to grant an acceptance at over 34.3 million merchant establishments, e-commerce websites and access to 2 million ATMs.

IBPS GENERAL AWARENESS EXPECTED PRACTICE MCQs

1. Who among the following never discharged the duties as the Governor of Reserve Bank of India?
1) Man Mohan Singh
2) M. Narasimham
3) P.Chidambaram
4) R. N. Malhotra
5) Dr. Bimal Jalan

2. On 5th October 2012, World Bank agreed to provide loan of $ 500 million to India for?
1) Infrastructure projects in the Southern Part of Western Ghats.
2) Upliftment of poor people residing in Andaman Nicobar Islands.
3) Repairing the old dams in the Coastal parts of Karnataka.
4) Providing the water to the region of Bhundelkand.
5) Secondary Education Project named Rashtriya Madhyamik Shiksha Abhiyan (RMSA).

3. On 16th October 2012, an Indian-American Banker Vikram Pandit resigned as the CEO of ?
1) BNP Paribas Group
2) ICICI Group
3) Axis Group
4) Federal Bank Group
5) Citi Group

4. Citi Bank headquarters is at ?
1) Mexico City
2) Paris
3) New York
4) Tokyo
5) Tel Aviv

5. In the minting of Rs. 500 and Rs. 1000 paper currency, RBI uses OVI. OVI means?
1) Oval Variation Ink
2) One Variation Ink
3) Optically Value Ink
4) Optically Variable Ink
5) None

6. Alvin Roth and Lloyd Shapley were conferred with Noble Prize 2012 in the field of?
1) Economics
2) Physics
3) Medicine
4) Chemistry
5) Peace

7. Days list given. Pick the incorrect one.
1) International Day of the Older Persons - 1 October
2) World Habitat Day - First Monday of October every year
3) UN International Day for National Disaster Reduction - 13 October
4) World White Cane Day (Guiding the Blind) - 16 October
5) International Day for the Eradication of Poverty -17 October

8. List of Bird sanctuaries in India given. The wrong combination is?
1) Bharatpur Bird Sanctuary - Rajasthan
2) Ranganathittu Bird Sanctuary - Kerala
3) Kolleru Lake Bird Sanctuary - Andrha Pradesh
4) Vedanthankal Lake Bird Sanctuary - Tamilnadu
5) Jayakwadi Bird Sanctuary - Maharashtra

Muthoot Finance wins award

Muthoot Finance Ltd has received the Golden Peacock Award for ‘Excellence in Corporate Governance’ for the year 2012 in London. The award ceremony hosted by Institute of Directors (IOD) at the London Global Convention 2012 was given on the basis of recommendations of the jury headed by Justice P.N. Bhagawati, former Chief Justice of India and member of the UN Human Rights Commission.

Centre of Science and Environment and HSBC Bank came Together to Impart Environment Training

Centre of Science and Environment (CSE) on 17 October 2012 announced Partnership with Hongkong and Shanghai Banking Corpoartion Ltd (HSBC) to set up modern Environment Training Institute in Alwar district of Rajasthan.

The Institute that will set up will be offering short and long term courses on Environmental governance for regulators and decision makers.

Both the organization will be improving environmental governance in India by building capacity of environment regulators, non-government organizations and industry.

The institute will cover the multiple research disciplines such as air pollution, water and waste water management, climate change, sustainable industrialisation and urbanisation, renewable energy, public transport and mobility and environment impact assessment.

The Institute is going to be developed as an incubation, development and demonstration centre for green technologies.
 
 Centre of Science and Environment (CSE)

The Centre for Science and Environment (CSE) is a public interest research and advocacy organisation based in New Delhi. It was founded in 1980. CSE researches into, lobbies for and communicates the urgency of development that is both sustainable and equitable.

Centre of Science and Environment uses knowledge-based activism to create awareness about environment related problems and helps in proposing sustainable solution.

ICICI Bank Signed an Agreement with Eco Bank of Africa

ICICI Bank on 15 October 2012 signed a memorandum of understanding (MoU) with Ecobank Transnational Incorporated of Africa in order to extend their banking services across their combined footprint in India and Africa.

The MoU was signed in Tokyo by Vijay Chandok, President - International Banking Group of ICICI Bank Ltd and Arnold Ekpe, Group CEO of Ecobank.

India’s trade with Africa has doubled in the past four years. Stronger investment ties are complementing this steady growth in trade with Indian investments in Africa across a range of sectors including oil & gas, pharmaceuticals, petrochemicals, fertilizers, IT and infrastructure.

About Ecobank

Eco bank is a pan-African banking conglomerate, with banking operations in 35 African countries. It is the leading independent regional banking group in West Africa and Central Africa, serving wholesale and retail customers. Ecobank was incorporated in Lome, Togo. Ecobank Transnational Incorporated is the parent company of the leading independent pan-African banking group.

About ICICI Bank

ICICI Bank Limited is India's largest private sector bank and the second largest bank in India, with consolidated total assets of US $ 111 billion as on June 30, 2012.
It is the second largest bank in India by assets and third largest by market capitalization.

BANKING AWARENESS PRACTICE MCQs

1. Which of the following is known as Plastic Money?
A) Demand Draft
B) Credit Card
C) Debit Card
1) Only A
2) Only B
3) Only C
4) Both B and C
5) All A, B and C

2. KYC guidelines followed by banks have been framed on the recommendations of the ...........
1) Ministry of Home Affairs
2) Ministry of Information Technology and Human Resource Development
3) Indian Banks Association
4) Ministry of Finance
5) Reserve Bank of India

3. Business Correspondents in banking are for:
1) Providing services for the Platinum Customers
2) Providing services for children
3) Serving the educational institutions
4) Serving the weaker sections of society
5) None of these

4. What is the full form of FDI?
1) Foreign Development Investment
2) Fiscal Development Investment
3) Foreign Direct Investment
4) Fiscal Direct Investment
5) None of these

5. CMD of a public sector bank is appointed by:
1) Reserve Bank of India
2) Indian Banks Association
3) Central Government
4) Respective Bank's Board of Directors
5) None of these

6. What is the current Statutory Liquidity Ratio?
1) 23 %
2) 24 %
3) 20%
4) 4.5%
5) None of these

7. Expand CTS.
1) Cheque Truncation System
2) Cash Transaction System
3) Current Transaction System
4) Credit Truncation System
5) None of the above

8. Micro finance development equity fund is managed by:
1) RBI
2) NABARD
3) Indian Banks Association
4) Asian Development Bank
5) None of these

9. What is the full form of LIBOR?
1) London Inter - Bank Offer Rate
2) Liquidity Inter - Bank Offer Rate
3) Liquidity International Bank Offer Rate
4) London International Bank Rate
5) None of these

10. Which of the following does not come under core sector?
1) Crude Oil
2) Natural Gas
3) Coal
4) Electricity
5) Automobile

RBI open to raising cap on global e-commerce deals

The Reserve Bank of India (RBI) is open to looking at increasing the limit on international e-commerce transactions now set at $3,000, a top official said on October 8.

“If the system wants the limit to be enhanced, that is something that we are positively inclined to look at,” RBI Executive Director G. Padmanabhan said on the sidelines of a CII event.

Mr. Padmanabhan said the limit was set in consultation with PayPal, a major player among the international payment gateways, and added that as many as 99 per cent of the e-commerce transactions fell under the limit of $3,000.

Rationale

Giving rationale for setting the limit (there are no limits for domestic e-commerce transactions), he said it was needed in a country like India which had exchange controls.

On extending trading hours in the forex market, the RBI official said it was difficult to relax as “we do not have full capital account convertibility.”

HDFC Bank & Indian Oil came Together to Provide Banking Services in Rural Areas

HDFC Bank on 4 October 2012 tied up with Indian Oil Corporation where rural Petrol Pump Outlets of Indian Oil will act as HDFC Bank Business Correspondent (BCs). It is unique and first kind of tie-up, where an oil distribution company is coming up with the bank to make available modern banking services to the people of remote areas. The Indian oil is going to make it possible through Kisan Seva Kendra which is an retail outlet model pioneered by Indian Oil to cater to the needs of customers in the rural segment.

HDFC Bank planned to cover 1000 Kisan Seva Kendras in a phased manner and each of these outlets will be able to serve around 1,500 customers. The Kisan Seva Kendra outlets will offer banking services such as preliminary processing of loan applications, disbursal and collection of small value deposits, sale of micro-insurance, mutual funds and other investment instruments. HDFC plan is to bring 10 million families into its banking Fold.

StanChart appoints former SBI chief Bhatt as board member

British banking major Standard Chartered Plc  appointed former SBI chairman O P Bhatt as board member. The appointment of 61-year old Bhatt, as an independent non-executive director, would be effective from January 1, 2013.

“Bhatt is a career banker with over 30 years banking experience and retired as Chairman of the State Bank Group in 2011,” StanChart said in a statement.

State Bank Group includes SBI, India’s largest commercial bank and five associate banks.

He is among the four new independent non-executive directors appointed by StanChart as part of efforts to enhance the experience, depth and diversity of its board.

The three other new directors are Lars Henrik Thunell, Margaret Ewing and Louis Chi-Yan Cheung. The appointments of Thunell and Ewing would be effective from November 1, 2012, that of Bhatt and Cheung would be from January 1, 2013. Bhatt had also headed the Indian Bank’s Association.

HDFC Bank joins hands with PUNGRAIN

HDFC Bank on September 29 joined hands with Punjab Grains Procurement Corporation Ltd (PUNGRAIN) to facilitate payment to its commission agents spread over 350 mandis in Punjab.

PUNGRAIN, in its initiative has decided to make payment to their commission agents through ‘RuPay Debit card’ and has developed the Kisan Arhtia (commission agents) information and Remittance Online Network (KAIRON) with the help of National Payment Corporation of India (NPCI).

For this project, HDFC Bank will install its Point of Sales (POS) machines in over 350 mandis to facilitate the payment to commission agents dealing in agriculture products.

It said this initiative will facilitate faster payments to them and in turn will benefit farmers.

HDFC Bank, in order to facilitate a successful implementation of this project, organised a day’s training session for nodal officers along with food inspectors of PUNGRAIN.

Narayana Murthy to exit HSBC board

UK-based global banking giant HSBC Holdings Plc  said N.R. Narayana Murthy, co-founder of IT giant Infosys and the only Indian on its board, would retire as its director at the end of 2012. Announcing the changes in its board and board committees, HSBC Holdings Plc said in a regulatory filing here that Renato Fassbind, former Chief Financial Officer of Credit Suisse Group, has been appointed a Director with effect from January 1, 2013. Besides, Fassbind would also become a member of the Group Audit Committee and the Group Remuneration Committee with effect from March 1, 2013. He will be an independent non-executive Director. Murthy will retire as a Director of HSBC Holdings plc on December 31 and will be succeeded as Chairman of the Corporate Sustainability Committee by Laura Cha.

While Cha is already a director, Murthy had joined the board in 2008. James Hughes-Hallett has also been appointed a member of the Corporate Sustainability Committee from January 1, 2013.

Fassbind was the Chief Financial Officer and a member of the executive board of Credit Suisse Group from June 2004 until September 2010. He is Vice-Chairman of Supervisory Board of Swiss Reinsurance Company, and a member of the Supervisory Board of the Swiss Federal Audit Oversight Authority.

Government Notified FDI in Multi-Brand Retail Trading

 

Previously, Foreign Direct Investment (FDI) is prohibited in retail trading, except in single-brand product retail trading, in which FDI, up to 100%, is permitted, under the Government route, subject to specified conditions.

Now, The Government of India has reviewed the extant policy on FDI and decided to permit FDI, up to 51%, under the Government route, in Multi-Brand Retail Trading, subject to specified conditions. 

FDI is prohibited in:

(a) Lottery Business, including Government /private lottery, online lotteries, etc. (b) Gambling and Betting, including casinos etc. (c) Chit funds (d) Nidhi company (e) Trading in Transferable Development Rights (TDRs) (f) Real Estate Business or Construction of Farm Houses (g) Manufacturing of Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes (h) Activities / sectors not open to private sector investment e.g. Atomic Energy and Railway Transport (other than Mass Rapid Transport Systems). 

Foreign technology collaboration in any form, including licensing for franchise, trademark, brand name, management contract, is also prohibited for Lottery Business and Gambling and Betting activities.

FDI in multi brand retail trading, in all products, will be permitted, subject to some conditions, such as: 

• Fresh agricultural produce, including fruits, vegetables, flowers, grains, pulses, fresh poultry, fishery and meat products, may be unbranded. 
• Minimum amount to be brought in, as FDI, by the foreign investor, would be US $ 100 million. 
• Retail sales outlets may be set up only in cities with a population of more than 10 lakh as per 2011 Census and may also cover an area of 10 kms around the municipal/urban agglomeration limits of such cities.
• Government will have the first right to procurement of agricultural products.

The above policy is an enabling policy only and the State GovernmentslUnion Territories would be free to take their own decisions in regard to implementation of the policy. Therefore, retail sales outlets may be set up in those StateslUnion Territories which have agreed, or agree in future, to allow FDI in MBRT under this policy.

GENERAL AWARENESS MCQs FOR BANK EXAMS

1. What is the revised growth rate target for the 12th Five Year Plan (2012-2017)?
1) 9%
2) 8%
3) 8.2%
4) 8.5%
5) 9.5%

2. Which Indian author has been short listed for this year's Man Booker Prize for his novel 'Narcopolis', a dark tale about the opium and heroin dens of Mumbai?
1) Aravind Adiga
2) Jeet Thayil
3) Amitav Ghosh
4) Chetan Bhagat
5) Rahul Bhattacharya

3. John Baird visited India and held talks with S.M.Krishna in September 2012. Baird is the Foreign Minister of which of the following countries?
1) France
2) Argentina
3) Canada
4) U.K.
5) Australia

4. Prince Salman bin Abdul Aziz was named the crown prince of which of the following countries on June 18, 2012?
1) Kuwait
2) Bahrain
3) Yemen
4) Oman
5) Saudi Arabia

5. Which of the following state-ments about G-20 is not true?
1) The G-20 includes 19 country members and the European Union.
2) G-20 was started in 2008 and accounts for 2/3rd of world's population and 80% of the world's GDP.
3) The seventh G-20 Summit was held at Los Cabos, Mexico on June 18-19, 2012.
4) The next G-20 Summit will be held in September 2013 in Saint Petersburg, South Africa.
5) At the Los Cabos Summit BRICS countries have pledged $75

6. Who took over as Director of the Bhabha Atomic Research Centre (BARC), Trombay from Ratan Kumar Sinha on June 19, 2012?
1) S.K.Jain
2) V.K.Saraswat
3) Srikumar Banerjee
4) Sekhar Basu
5) None of these

7. What is the new name of the former Soviet aircraft carrier Admiral Gorshkov, which has been procured by India?
1) INS Vikrant
2) INS Viraat
3) INS Vikramaditya
4) INS Chakra
5) INS Arihant

8. Which of the following Indian Institutes of Technology (IITs) will start Dr. Bidhan Chandra Roy Institute of Medical Science and Research?
1) IIT, Bombay
2) IIT, Madras
3) IIT, Hyderabad
4) IIT, Kanpur
5) IIT, Kharagpur

9. American President Barack Obama awarded the Presidential Medal of Freedom to Shimon Peres on June 13, 2012. Peres is the President of which of the following countries?
1) Poland
2) Belarus
3) Israel
4) Germany
5) Slovakia

10. The Nuclear Power Corporation of India Limited (NPCIL) will launch how many reactors during the 12th Plan period (2012-2017)?
1) 12
2) 16
3) 10
4) 11
5) 13

HDFC Bank announced the Launch of Credit Card for Teachers

HDFC Bank on 5 September 2012 announced the launch of credit card for teachers, coinciding with the celebration of Teachers Day. The card offers special features like multiple reward points, weekend bonanza points, petrol surcharge waiver and 500 special gift reward points to be credited annually on the Teachers day.
With a combined market size of more than 450 million students and growth rates of 10-15 per cent expected over the next decade, education is one of the largest service sectors in India. In fact, it is the largest issuer of credit cards in the country with a customer base of 5.60 million as of 31 March, 2012.

Kaushik Basu new World Bank chief economist

The World Bank on 5 September, 2012 named as its chief economist, placing a candidate from an emerging market country in a key position at the global development lender.
Basu, who was most recently chief economic adviser to the government of India, is the World Bank's second chief economist from a developing country. He replaces Justin Lin, a citizen of China, whose term expired on June 1, 2012.
Basu, who holds a Ph.D. from the London School of Economics, is on leave from his position as a professor of economics and international studies at Cornell University in New York. He previously founded the Centre for Development Economics at the Delhi School of Economics.
Emerging market countries have long pushed for more clout at the poverty-fighting World Bank and its sister institution, the International Monetary Fund.
Starting from October, Basu will serve under new World Bank President Jim Yong Kim, a Korean-American and who took the helm of the World Bank two months ago.

List of World Bank Chief Economists
● Hollis B. Chenery — 1972–1982
● Anne Osborn Krueger — 1982–1986
● Stanley Fischer — 1988–1990
● Lawrence Summers — 1991–1993
● Michael Bruno — 1993–1996
● Joseph E. Stiglitz - 1997–2000
● Nicholas Stern - 2000–2003
● François Bourguignon — 2003–2007
● Justin Yifu Lin — June 2008– June 2012
● Martin Ravallion — June 2012- (Acting Chief Economist)

SBI ASSOCIATE BANK CLERKS EXAM MARKETING KNOWLEDGE MCQs

1. EMI can be marketing tool when
1) EMI is very low
2) EMI is very high
3) EMI is fluctuating
4) EMI is constant
5) EMI is ballooning

2. Advertisements are necessary for
1) only old products
2) launching new products
3) only costly products
4) only obsolete products
5) advertisements are wasteful expenses

3. Publicity is required for -
1) generating more number of leads
2) better training of sales persons
3) market survey
4) product designing
5) OTC Marketing

4. NAV is the price of
1) Entire fund value
2) one unit of a fund
3) surrender value
4) average value of shares
5) dividends paid in a year

5. A master policy in the case of Life insurance indicates
1) policy is sale
2) policy is in the name of servant
3) only one life is assured
4) there are several beneficiaries
5) life assured should be a male

6. Customer database is useful for -
1) advertisements
2) word-of-mouth publicity
3) CRM Functions
4) PR functions
5) sales persons training

7. CRM (Customer Relationship Management) is -
1) A pre-sales activity
2) A tool for lead generation
3) an ongoing daily activity
4) the task of a DSA
5) back office duty

Jammu and Kashmir Bank was Awarded Best Banker Prize

Jammu and Kashmir Bank on 20 August 2012 won four national awards-The Sunday Standard FINWIZ-2012 Best Bankers’ Awards. The Bank was awarded Best Banker in Financial Inclusion and Customer Friendliness and declared runner up for Best Banker in Priority Sector Growth and Agricultural Credit.
The Sunday Standard is a part of the New Indian Express Group which is based in Chennai. It had engaged Indicus Analytics- India’s premier economic research agency- to conduct a survey and find out India’s best bankers.
The surveyors highlighted the J&K Bank’s contribution in facilitating the workings of the economy and contributing to its growth by promoting entrepreneurs and innovation.

GENERAL AWARENESS MCQs FOR BANK EXAMS

1. Gulab Kothari has won which of the following awards for the year 2011?
1) Saraswati Samman
2) Moorti Devi Award
3) Jnanpith Award
4) Vyas Samman
5) None of these

2. Ramadevarabetta in Ramana-garam district has been declared as a vulture sanctuary. In which state is this sanctuary located?
1) Kerala
2) Tamil Nadu
3) Karnataka
4) Maharashtra
5) None of these

3. Who was sworn in as Hong Kong’s new chief executive on July 1, 2012?
1) Leung Chun-Ying
2) Donald Tsang
3) Ronald Arculli
4) Chung Sze-Yuen
5) None of these

4. The Templeton Prize honors a living person who has made an exceptional contribution to affirming life’s spiritual dimension. Who won the 2012 Templeton Prize, the largest annual monetary award given to an individual?
1) Martin Rees
2) Michael Heller
3) The Dalai Lama
4) Charles Taylor
5) Francisco Jose Ayala

5. “No Apology: The Case for American Greatness” is a book written by?
1) Barack Obama
2) Joe Biden
3) George Bush
4) Mitt Romney
5) Bobby Jindal

6. Who received the 2011 Dadasaheb Phalke Award, the highest honour in Indian cinema given annually by the Govern-ment of India for lifetime contribution?
1) Tapan Sinha
2)Shyam Benegal
3) D.Ramanaidu
4) Mrinal Sen
5) Soumitra Chatterjee

7. Which of the following films was declared the Best Children Film at the 59th National Film Awards for the year 2011?
1) Stanley Ka Dabba
2) The Blue Umbrella
3) Keshu
4) Chillar Party
5) None of these

“Risk Index” to facilitate banks in extending loans soon: CIBIL

Credit Information Bureau (India) Ltd (CIBIL) is likely to bring in a “Risk Index” that will assist country’s banks in making faster decisions on extending loans to corporates and business houses.
Banks would be able to gauge the potential of a company in servicing its loan by looking at its position in the index.
The Risk Index:

• The Risk Index will be in the form of a score ranging from 300 to 900, a glance of which will provide the Bank the credit history of the respective companies.
• While Banks, currently, take the help of credit rating agencies who provide a broader picture of the risk profile of the company on the basis of their trade data and balance sheets, the Risk index will assist lenders analyze the profile of business establishments.

SBI ASSOCIATE BANKS CLERKS EXAMS GENERAL AWARENESS MCQ CAPSULES

1. The new chairman of Life Insurance Corporation of India is:
1) T.V. Raghu Nath
2) D.K. Mehrotra
3) Snigdha Nandipati
4) Rahul Bhattacharya
5) None

2. India has signed Tax Information Exchange Agreement to promote economic Cooperation and Joint investment aimed at boosting bilateral trade that stands at 1.7 Billion Dollars with which of the following countries:
1) Russia
2) Nepal
3) United States
4) Bahrain
5) Srilanka

3. Which of the following states has maximum forest cover area in India as per the recent India state of Forest report?
1) Andhra Pradesh
2) Bihar
3) Tamil Nadu
4) Orissa
5) Madhya Pradesh

4. Which of the following countries is expected to become the 2nd largest producer of crude steel in the world by 2015:
1) USA
2) Russia
3) China
4) India
5) Iraq

5. Which of the following state governments has decided to re-impose property tax on buildings including residential in the state:
1) Tamil Nadu
2) Maharashtra
3) Madhya Pradesh
4) Haryana
5) Andhra Pradesh

6. Find the former Egypt president who has been awarded life sentence, for killing hundreds of protestors -
1) Hosni Mubarak
2) Mohammad Morsi
3) Al Thani
4) Bashar Al-Assad
5) None of these

7. In order to work on health and development related issues Microsoft co-founder and cochairman of Bill and Melinda Gates Foundation inked a Memorandum Of Understanding (MoU) with which of the following states :
1) Andhra Pradesh
2) Uttar Pradesh
3) Madhya Pradesh
4) Kerala
5) Karnataka

8. Who is the first Indian writer to win Ondaatje Prize for his book - 'The sly Company of People who Care' - which is about adventures of an Indian Journalist?
1) Chetan Bhagath
2) Sidney Sheldon
3) Shobha De
4) Rahul Bhattacharya
5) Jeffery Archer

9. The state which has created a new Limca record by holding the largest guitar ensemble of the country in which 5406 guitarists participated is :
1) Andhra Pradesh
2) Goa
3) Assam
4) Tripura
5) Manipur

GENERAL EXPECTED QUESTIONS FOR BANK EXAMS

1. Who was appointed as the Chief Economic Advisor (CEA) in the Finance Ministry in August 2012?
1) Kaushik Basu
2) C. Rangarajan
3) Y.V.Reddy
4) Raghuram Rajan
5) Ajay Chhibber

2. Which city hosted the 20th ASEAN Summit on April 3, 2012?
1) Jakarta (Indonesia)
2) Phnom Penh (Cambodia)
3) Manila (Philippines)
4) Bangkok (Thailand)
5) Hanoi (Vietnam)

3. India launched its third research station in Antarctica recently. What is its name?
1) Dakshin Gangotri
2) Maitri
3) Bharti
4) Bhuvan
5) Akash

4. Ahmed Ben Bella passed away on April 11, 2012. He was the first President of which of the following African countries from 1963 to 1965?
1) Morocco
2) Tunisia
3) Mauritania
4) Algeria
5) Egypt

5. Which of the following statements about the Nuclear Security Summit is not true?
1) The second Nuclear Security Summit was held in Seoul, South Korea on March 26-27, 2012.
2) The leaders from 53 nations called for strong steps to combat nuclear terrorism.
3) The leaders also called for safeguarding world stockpiles of Highly Enriched Uranium (HEU) and Plutonium.
4) The next Summit will be held in Washington in 2014.
5) The Prime Minister Dr. Manmohan Singh announced that India
would contribute 1 million US dollars to the IAEA's Nuclear Security Fund for 2012-13.

6. Who became the President of Germany on March 18, 2012?
1) Angela Merkel
2) Joachim Gauck
3) Christian Wulff
4) Horst Kohler
5) Sigmar Gabriel

7. Who has been appointed as the Pakistan's High Commissioner to India?
1) Sherry Rehman
2) Hina Rabbani Khar
3) Salman Bashir
4) Riaz Mohammad Khan
5) None of these

8. N.K.P.Salve passed away recently. He was the former president of which of the following sports governing bodies?
1) AIFF
2) IOA
3) BCCI
4) ICC
5) IPL

9. Who was re-elected the General Secretary of the Communist Party of India (Marxist) in April 2012?
1) V.S.Achuthanandan
2) Prakash Karat
3) A.K.Padmanabhan
4) Buddhadeb Bhattacharjee
5) Sitaram Yechury

10. The Swavalamban pension scheme is targeted to benefit which of the following workers?
1) Anganwadi workers
2) Construction workers
3) Fishermen
4) Dairy workers
5) All the above

GENERAL AWARENESS MCQs FOR SBI CLERKS EXAM

1. Gagan Narang became the first Indian to win a medal at the London Olympic Games on July 30, 2012 when he won a bronze medal in 10 metre air rifle shooting. Who won gold medal in this event?
1) Alin George Moldoveanu (Romania)
2) Niccolo Campriani (Italy)
3) Wang Tao (China)
4) Zhu Qinan (China)
5) None

2. Joyce Banda became the Presi-dent of which of the following African countries on April 7, 2012?
1) Zambia
2) Tanzania
3) Malawi
4) Mozambique
5) Liberia

3. Debabrata Sarkar assumed charge as the Chairman and Managing Director of which of the following public sector banks on April 4, 2012?
1) UCO Bank
2) Andhra Bank
3) United Bank of India
4) Union Bank of India
5) None

4. Macky Sall assumed office as the President of which of the following African countries on April 2, 2012?
1) Senegal
2) Mali
3) Mauritania
4) Guinea
5) Guinea-Bissau

5. Prodemocracy leader Aung San Suu Kyi's party won 43 seats in the by-elections for Myanmar parliament in April 2012. What is the name of her party?
1) National Unity Party (NUP)
2) Democracy and Peace Party (DPP)
3) Union Solidarity and Development Party (USDP)
4) National League for Democracy (NLD)
5) None

6. RBI signed a pact with which one of the following countries' central banks in April 2012 that will establish an arrangement for sharing of supervisory inform-ation and enhancing cooperation in the area of banking super-vision?
1) Pakistan
2) Qatar
3) UAE
4) Saudi Arabia
5) None of these

7. Which one of the following stat-ements about BRICS is not true?
1) The fourth BRICS Summit was organized in New Delhi on March 29, 2012.
2) The theme is "BRICS Partner-ship for Global Stability, Security and Prosperity".
3) The five countries considered the possibility of setting up a new development bank.
4) The leaders have advocated for reforms in World Bank, IMF and UN Security Council by increasing representation from developing countries.
5) The next BRICS summit will be held in China in 2013.

8. Gunter Grass, the German Nobel literature laureate, has accused which of the following countries as a threat to world peace in his poem 'What Must Be Said'?
1) Iran
2) Israel
3) Myanmar
4) North Korea
5) Syria

9. In April 2012, the United States announced a reward of $ 10 million on Hafeez Saeed, for his alleged role in the 2008 Mumbai terror attacks. He is the founder of which of the following terrorist organizations?
1) Al Qaeda
2) Harkat-ul-Mujahideen
3) Lashkar-e-Taiba
4) Jaish-e-Mohammed
5) None

10. "My Unforgettable Memories" is a book written by which of the following political leaders?
1) Sharad Pawar
2) Mamata Banerjee
3) J.Jayalalitha
4)Naveen Patnaik
5) Narendra Modi

Panel set up to beef up rural credit co-ops

The Reserve Bank of India,  constituted a committee to suggest ways to strengthen the rural co-operative credit structure.

The panel, headed by Nabard Chairman Prakash Bakshi, will review the existing short-term co-operative credit structure (STCCS), focussing on structural constraints in the rural credit delivery system. It will also explore ways to strengthen the rural co-operative credit architecture. The seven-member panel will make an in-depth analysis of the STCCS, and examine various alternatives with a view to reducing the cost of credit, the RBI said in a release.

It will also look at the feasibility of setting up of a two-tier STCCS as against the existing three-tier structure.

The STCCS targets the credit requirement of the small and marginal farmers in the country.

“The panel will submit its report within three months from the date of its first meeting,” it said.

It will mainly assess the role played by State and district cooperative banks in fulfilling the requirement of agriculture credit.

NBFC-MFI norms modified

All registered non-banking financial companies (NBFCs) intending to convert themselves into non-banking financial company-micro finance institutions (NBFC-MFIs) must seek registration with immediate effect, and, in any case, not later than October 31, the Reserve Bank of India said in a notification.

The NBFCs have to maintain net-owned funds (NOF) at Rs..3 crore by March 31, 2013, and at Rs.5 crore by March 31, 2014, “failing which they must ensure that lending to the micro finance sector, that is, individuals, SHGs or JLGs, which qualify for loans from MFIs, would be restricted to 10 per cent of the total assets,” the RBI said in a notification. The RBI made some modifications in the directions issued on December 2, 2011, to NBFC-MFIs.

In order to provide encouragement to NBFCs operating in the north-eastern region, the minimum NOF is to be maintained at Rs.1 crore by March 31, 2012, and at Rs.2 crore by March 31, 2014.

SBI CLERKS EXAM GENERAL AWARENESS PRACTICE MCQs

1. Saina Nehwal won the Indonesian Open Super Series Premier tournament in Jakarta in June 2012. This is her third Indonesian Open badminton title in four years. Which of the following players did she defeat in the final?
1) Shixian Wang
2) Sayaka Sato
3) Wang Yihan
4) Ji Hyun Sung
5) Li Xuerui

2. Alex Paul Menon was abducted on April 21, 2012 by the Maoists and was released after 13 days. He is the district collector of which of the following districts in Chhattisgarh?
1) Balod
2) Narayanpur
3) Bilaspur
4) Sukma
5) Dantewada

3. Panch Parameshwar Yojana was launched in which of the following states recently for overall development of villages?
1) Bihar
2) Andhra Pradesh
3) Jharkhand
4) Madhya Pradesh
5) Himachal Pradesh

4. Which cricket team has won the Ranji Trophy for 2011-12?
1) Rajasthan
2) Tamil Nadu
3) Baroda
4) Mumbai
5) Karnataka

5. With which game is B.C.Roy Trophy associated?
1) Hockey
2) Football
3) Cricket
4) Tennis
5) Billiards

6. Who was elected as the Chairman of the Indian Banks' Association (IBA) in June 2012?
1) J.P.Dua
2) Ajay Kumar
3) Alok Misra
4) M.Narendra
5) Pratip Chaudhary

7. Amalraj and Poulomi Ghatak are the national champions in men's and women's sections respecti-vely in which of the following sports?
1) Billiards
2) Table Tennis
3) Badminton
4) Lawn Tennis
5) Chess

8. Which of the following leaders was associated with the Velvet Revolution?
1) Lech Walesa
2) Nelson Mandela
3) Vaclav Havel
4) Joseph Stalin
5) Helmet Kohl

9. Ajit Singh, the Union Civil Aviation Minister, belongs to which of the following political parties?
1) Samajwadi Party
2) Bahujan Samaj Party
3) Trinamool Congress
4) Rashtriya Lok Dal
5) Biju Janata Dal

10. Who is the author of the book 'Non-Stop India'?
1) Mark Tully
2) Chetan Bhagat
3) Julian Barnes
4) Philip Roth
5) None of these

SBI ASSOCIATE BANKS CLERKS EXAM GENERAL AWARENESS PRACTICE QUESTIONS

1. Who was sworn in as Hong Kong's new chief executive on July 1, 2012?
1) Leung Chun-Ying
2) Donald Tsang
3) Ronald Arculli
4) Chung Sze-Yuen
5) None of these

2. The Templeton Prize honors a living person who has made an exceptional contribution to affirming life's spiritual dimension. Who won the 2012 Templeton Prize, the largest annual monetary award given to an individual?
1) Martin Rees
2) Michael Heller
3) The Dalai Lama
4) Charles Taylor
5) Francisco Jose Ayala

3. Gulab Kothari has won which of the following awards for the year 2011?
1) Saraswati Samman
2) Moorti Devi Award
3) Jnanpith Award
4) Vyas Samman
5) None of these

4. Ramadevarabetta in Ramana-garam district has been declared as a vulture sanctuary. In which state is this sanctuary located?
1) Kerala
2) Tamil Nadu
3) Karnataka
4) Maharashtra
5) None of these

5. "No Apology: The Case for American Greatness" is a book written by?
1) Barack Obama 2) Joe Biden
3) George Bush 4) Mitt Romney
5) Bobby Jindal

6. Who received the 2011 Dadasaheb Phalke Award, the highest honour in Indian cinema given annually by the Govern-ment of India for lifetime contribution?
1) Tapan Sinha
2)Shyam Benegal
3) D.Ramanaidu
4) Mrinal Sen
5) Soumitra Chatterjee

7. Which of the following films was declared the Best Children Film at the 59th National Film Awards for the year 2011?
1) Stanley Ka Dabba
2) The Blue Umbrella
3) Keshu
4) Chillar Party
5) None of these

8. As per a report released by the Stockholm International Peace Research Institute (SIPRI) in March 2012, which country is the world's largest importer of arms?
1) India
2) South Korea
3) Pakistan
4) China
5) Singapore

9. Who was crowned as the Pantaloons Femina Miss India World 2012 on March 30, 2012 in Mumbai?
1) Prachi Mishra
2) Ankita Shorey
3) Vanya Mishra
4) Rochelle Maria Rao
5) Hasleen Kaur

10. Which Indian has been chosen for the Ramon Magsaysay Award for the year 2012, for economic empowerment of thousands of women and their families in Krishnagiri and Dharmapuri districts in Tamil Nadu?
1) Dr.Shanta Sinha
 2) Kulandei Francis
3) Sandeep Pandey
4) Arvind Kejriwal
5) Neelima Misra

General Anti Avoidance Rule (GAAR)

The General Anti Avoidance Rule (GAAR)- proposed by the then Union Finance Minister Pranab Mukherjee during the annual budget 2012-13- is anti-tax avoidance rule, drafted by the Union Government of India, which prevents tax evaders, from routing investments through tax havens like Mauritius, Luxemburg, Switzerland.
According to the draft, GAAR will come into effect from 1 April 2013. As per the guidelines, FII not opting for treaty benefits and ready to pay taxes will not come under GAAR, but those who do opt for dual taxation avoidance agreements will come under its purview.
The Union Government was forced to defer the rules until 1 April 2013, as foreign investors had expressed their reservation about the language used in the rules. Investors had maintained that the ambiguous language used in the draft of the GAAR could lead to the misuse of the rule.

 Tax Havens:

Tax havens are countries which have low tax regimes which provide individuals and business opportunities of tax avoidance or tax evasion. There are roughly 45 tax havens in the world today. In Indian context, Mauritius is considered to be the most significant tax havens or tax evading route.
In more precise words the Mauritius route can be described as a channel used by individuals and Multi National Companies to evade paying taxes in India. The tax evasion in India through this route is estimated to be in tune with 55 billion dollar, mostly attributed to the loopholes in a bilateral agreement on double taxation.

State Bank of Patiala launched Gold Loan (Swarn Shakti) for Farmers

State Bank of Patiala (SBOP) on 2 July 2012 launched gold loan (Swarn Shakti) for farmers against the security of gold ornaments to provide free loans to the farmers without taking loan on land. It would make farmers to meet their small and long term agricultural needs with crop production, investment and consumption.

The maximum amount of loan is 10 lakh rupees and 30 percent margin will be given by the farmers. The loan for crop production will be charged at 7 percent per year up to 3 lakh rupees. Further, 3 percent interest of financial support will be given to farmers who refund their loans in time. Therefore, the actual rate of interest charged will be 4 percent. The total period to refund the amount will be 36 months counting with harvesting season

United Bank to set up office in Myanmar

United Bank of India has received approval from Central Bank of Myanmar for setting up of a representative office in Yangon. It is the first Indian bank to have presence in the country, said a press statement issued by the bank.

The bank has already received RBI’s approval for opening its representative office in Myanmar, the bank’s Executive Director, Mr Deepak Narang, had said recently. “…Though we will not be able to carry out financial transactions through our representative office, we will get leads which can then be routed into our branches,” he said.

10 EU nations to push for transaction tax

Germany and nine other European Union nations will press ahead with plans to introduce a financial market transaction tax, following failed attempt for an agreement to levy it across the EU.

Finance ministers of the 27-nation EU, who met in Luxembourg on Friday, came to the conclusion that an agreement to impose the tax across the bloc will not be possible in the foreseeable future, German Finance Minister, Mr Wolfgang Schaeuble, told the media after the meeting.

Therefore, 10 nations who are willing to cooperate have decided to move forward by taking the necessary steps on the national level, and to ask the European Commission to draw up legislative proposals to introduce the tax.

Besides Germany, supporters of the tax are Austria, Belgium, France, Portugal, Slovania, Estonia, Greece, Slovakia and Spain. Under the EU rules, the proposed tax can be introduced if at least nine nations support it.

The European Commission estimates that by charging a tax between 0.01 per cent and 0.05 per cent on a broad range of finance market transactions, more than €30 billion could be raised annually.

There have been several unsuccessful attempts in the past to reach an agreement to introduce the tax in the EU as well as at the international level.

Its supporters argue that the tax is necessary to stem excessive speculations in the financial market, to reduce volatility and to involve financial institutions in sharing the costs of future financial bailouts.

The plan is vehemently opposed by Britain and Sweden, which fear that it might lead to an exodus of businesses and financial institutions from Europe and endanger growth.

Micro-finance in a remittance economy

Financial inclusion has become an emerging focus for policymakers around the world, and it is nowhere more relevant than in India. Analysts estimate that up to half the Indian households do not have a bank account. In fact, the Census 2011 found that more than 40 per cent of the population lives two km or more from the nearest bank branch or agent.

For India to facilitate more balanced economic development, universal access to basic financial services is essential.

There are no easy solutions. Strict regulation of banking and other financial services is vital to address money laundering, terrorist financing and fraud.

INDIA’S UNBANKED

India’s formal financial services sector is yet to meet the growing needs of a large part of the population. When it comes to domestic remittances, 57 per cent of migrant workers in India use hawala couriers and other informal channels to remit money, according to a recent study.

Analysts estimate that almost 40 per cent of the participants in India’s informal economy — which accounts for half the country’s gross domestic product — resort to chit funds, barter and moneylenders for financing.

It is logical that an informal sector thrives in the absence of convenient, reliable, speedy and regulated financial services. The risk of unabated informal and or illegal financial traction and its risk on national/consumer security and impact on a country’s monetary policy require no debate.

The need for increased access to formal financial services is an important and urgent policy objective not only for India but also for its main trading partners, including its key remittance sending countries.

The World Bank published a pivotal report in June 2010, Inclusive Finance, which provides a standard definition of financial inclusion. The bank said that affordability, availability and convenience, and quality are key features. It also subdivided financial inclusion into four product types: payments, savings, insurance and credit.

When Western Union commenced offering international money transfers in 1993, the company remitted money from 41 countries into India. Today, Western Union remits money from more than 190 countries and territories into India. This is a significant progression in facilitating financial inclusion.

Last month, Western Union announced the opening of its 100,000th agent location in India. Western Union’s agents and sub-agents include banks, post offices, grocery and convenience stores and many other types of businesses.

If India were to deliver payment, saving, insurance and credit products to half the population, it seems logical that — subject to careful screening of providers, efficient regulatory oversight and appropriate limits — the way forward is to take advantage of existing broad-based networks and new consumer technology to selectively open financial services to non-banks, while promoting cooperation among all sectors.

TECHNOLOGY POTENTIAL

Western Union’s experience gives clear evidence that non-bank financial institutions can foster increased demand for local banking and financial services. For example, Western Union’s insights reveal that in India, the banking access rate for receivers of cash remittances is more than double (51 per cent) that of sending overseas workers themselves (22 per cent).

Many recipients open bank accounts to receive these transfers and, by doing so, give themselves the opportunity to access the full range of banking services. Linking payments received to savings accounts is clearly a way to promote financial inclusion.

Could mobile phone wallets be linked to inward remittances? Could pre-paid cards provide a new financial mechanism for the unbanked? Could village corner stores expand to serve as the agent, not only of Western Union, but of a bank, providing basic, yet fundamental financial services? How does India facilitate greater usage of formal channels for domestic remittances?

Advances in technology have opened up new ways to deliver reliable, transparent, easily monitored and regulated financial services. Large commercial networks already exist that link every corner of India, including that of Western Union. The country is at the forefront of the IT revolution.

There is already a common will of government and businesses to achieve the objective of financial services for all. What is required next is a collaborative approach.

India’s regulators are already moving leaps and bounds in this direction. In a clear sign of its increasing influence on the global financial stage, India recently become the newest member of CGAP (Consultative Group to Assist the Poorest), the independent policy and research centre housed at the World Bank dedicated to improving financial access for the world’s poor. India is the first from emerging markets to join CGAP.

India’s membership is a commendable signal that the Government is committed to providing financial access to the more than 2.5 billion working-age adults under-served by mainstream financial services.

BANKING AWARENESS PRACTICE MCQs

1. When Government of India was approved SBISBS Merger ?
(A) In August 2007
(B) In August 2009
(C) In March 2011
(D) In July 2011
See Answer:(A)

2. When RBI made compulsory to the Basel II norms for Banks ?
(A) March 31, 2007
(B) March 31, 2008
(C) March 31, 2010
 (D) March 31, 2011
See Answer:(B)

3. Which bill passed for reducing the minimum level of government's shareholding in equity of SBI from 55 per cent to 51 per cent ?
(A) SBI (Amendment) Bill 2009
(B) SBI (Amendment) Bill 2010
(C) RBI (Amendment) Bill 2012
(D) None of these
See Answer:(B)

4. The Reverse Repo rate as announced by RBI on April 17, 2012 stand at—
(A) 7•0%
(B) 9•0%
(C) 8•0%
(D) 8•5%
See Answer:(A)

5. The new president of ASSOCHAM for the year 2012-13 is—
(A) Dilip Modi
(B) R. V. Kanoria
(C) Raj Kumar Dhoot
(D) N. L. Kidwai
See Answer:(C)

6. The saving-investment gap during 2010-11 has been estimated at—
(A) 2•8% of GDP 
(B) 3•0% of GDP
(C) 3•2% of GDP 
(D) 3•8% of GDP
See Answer:(A)

7. The pace of credit growth for Private Sector banks increased to 11•7 per cent during—
(A) 2010 -11 
(B) 2009 -10
(C) 2012 -13 
(D) 2008 -10
See Answer:(B)

8. According to RBI, bank loan registered a growth of 21•38 per cent in—
(A) 2010-11 
(B) 2009-10
(C) 2010-12 
(D) 2011-12
See Answer:(A)

9. As per RBI, bank deposits growth stood at....... in 2010-11.
(A) 12% 
(B) 13%
(C) 15•84% 
(D) 14•13%
See Answer:(C)

10. RBI has projected growth of 17% in bank deposits for the entire financial year—
(A) 2011-12 
(B) 2010-11
(C) 2011-13 
(D) 2012-13
See Answer:(A)

BANKING AWARENESS MCQs

1. For the development of the banking facilities in the rural areas the Imperial Bank of India was partially nationalised on—
(A) June 1, 1940
(B) June 1, 1942
(C) July 1, 1955
(D) July 1, 1949
Answer: July 1, 1955

2. The Imperial Bank of India was named as the—
(A) Reserve Bank of India
(B) State Bank of India
(C) Union Bank of India
(D) Bank of India
Answer: State Bank of India

3. Which is/are not an associated bank of SBI ?
(A) The State Bank of Hyderabad
(B) The Union Bank of India
(C) The State Bank of Bikaner and Jaipur
(D) The State Bank of Mysore
Answer: The Union Bank of India

4. In order to have more control over the banks, 14 large commercial banks whose reserves were more than Rs. 50 crore each were nationalized on—
(A) 19th July, 1969 
(B) 19th July, 1970
(C) 19th July, 1971 
(D) 19th July, 1972
Answer: 19th July, 1969

5. Which is not a nationalised bank ?
(A) Bank of India 
(B) Canara Bank
(C) AXIS Bank
 (D) Vijaya Bank
Answer: AXIS Bank

6. When the Government of India merged the New Bank of India with Punjab National Bank ?
(A) Sept. 4, 1993 
(B) July 1, 1990
(C) July 1, 1993 
(D) March 1, 1993
Answer: Sept. 4, 1993

7. Which is the Central Bank of India ?
(A) The Central Bank of India
(B) The State Bank of India
(C) The Reserve Bank of India
(D) The Union Bank of India
Answer: The Reserve Bank of India

8. The RBI was established in—
(A) 1935 
(B) 1940
(C) 1947 
(D) 1949
Answer: 1935

9. When RBI was set up, the Capital of the Bank was—
(A) 500 crore 
(B) 50 crore
(C) 15 crore 
(D) 5 crore
Answer: 5 crore

10. The general administration and direction of RBI is managed by a Central Board of Directors consisting of–
(A) 20 members 
(B) 15 members
(C) 5 members 
(D) 25 members
Answer: 20 members