List of Indian Banks & Private Banks and their Heads

Central Bank
RBI (Governor) – Raghuram Rajan 
RBI (Dy. Governor) – H. R. Khan, Urjit R. Patel, R. Gandhi & S.S. Mundra 

Nationalized Banks 
Allahabad Bank  (Chairman and MD) – Rakesh Sethi 
Andhra Bank (MD and CEO) – Suresh N. Patel 
Bank of Baroda (MD and CEO) – P.S. Jayakumar 
Bank of India (MD and CEO) – Melwyn Rego 
Bank of Maharashtra (Chairman and MD) – Sushil Muhnot 
Bhartiya Mahila Bank (Chairman and MD) – 
Canara Bank (MD and CEO) – Rakesh Sharma 
Central Bank of India (Chairman and MD) – Rajiv Rishi 
Corporation Bank (Chairman and MD) – S.R. Bansal 
Dena Bank (Chairman and MD) – Ashwani Kumar 
IDBI (MD and CEO) – K.P. Kharat 
Indian Bank (Chairman and MD) – M.K. Jain 
Indian Overseas Bank (MD and CEO) –  R. Koteeswaran 
Oriental Bank of Commerce (MD and CEO) –  Animesh Chauhan 
Punjab National Bank (MD and CEO) –   Usha Ananthasubramanian 
Punjab and Sind Bank (Chairman and MD) – J.B. Singh 
Syndicate Bank (MD and CEO) –  Arun Srivastava 
UCO Bank (Chairman and MD) –   Ravi Kishan Takkar 
Union Bank of India (Chairman and MD) – Aurn Tiwari 
United Bank of India (MD and CEO) –   P. Srinivas 
Vijaya Bank (MD and CEO) –  Kishore Kumar Sansi 

State Bank Group 
State Bank of India (Chairman) – Arundhati Bhattacharya 
State Bank of Bikaner and Jaipur (MD) – Jyoti Ghosh 
State Bank of Hyderabad (MD) – Santanu Mukherjee 
State Bank of Mysore (MD) – Sharad Sharma 
State Bank of Patiala (MD) – S.A. Ramesh Rangan 
State Bank of Travancore (MD) – Jeevan Das Narayan 

Private Bank 
Axis Bank (MD and CEO) – Shikha Sharma 
Catholic Syrian Bank (MD and CEO) – Anand Krishnamurthy 
City Union Bank (MD and CEO) – N. Kamakodi 
Development Credit Bank (MD and CEO) – Murali M. Natrajan 
Dhanalakshmi Bank (MD and CEO) – P.G. Jayakumar 
Federal Bank (MD and CEO) – Shyam Shrinivasan 
HDFC Bank (MD) – Aditya Puri 
ICICI Bank (MD and CEO) – Chanda D. Kochhar 
Indusind Bank (MD) – Romesh Sobti 
J and K Bank (Chairman and CEO) Mushtaq Ahmad 
Karnataka Bank (MD and CEO) – P. Jayarama Bhat 
Karur Vyasa Bank (MD and CEO) – K. Venkataraman 
Kotak Mahindra Bank (MD) – Uday S. Kotak 
Lakshmi Vilas Bank (MD and CEO) – 
Nainital Bank (Chairman and CEO) – S.K. Gupta 
Ratnakar Bank (MD and CEO) – Vishwavir Ahuja 
South Indian Bank (MD and CEO) – V.G. Mathew 
Tamil Nad Mercantile Bank (MD and CEO) – K.B. Nagendra Murthy 
Yes Bank (MD and CEO) – Rana Kapoor

RuPAY CARD

❖ RuPay is a combination of two words – Rupee and Payment. RuPay Card is an Indian version
of credit/debit card. It is very similar to international cards such as Visa/Master.

❖ RuPay is the Indian domestic card payment network set up by National Payments Corporation of India (NPCI) at the behest of banks in India with the approval of Reserve Bank of India.

❖ It is created to fulfill the Reserve Bank of India's desire to have a domestic, open loop, and multilateral system of payments in India.

❖ RuPay facilitates electronic payment at all Indian banks and financial institutions, and competes
with Master Card and Visa in India.

❖ NPCI maintains ties with Discover Financial to enable the card scheme to gain international acceptance.

❖ National Payments Corporation of India (NPCI) has a plan to provide a full range of card payment services including the RuPay ATM, RuPay Micro ATM, Debit, Prepaid and Credit
Cards which will be accepted in India and abroad, across various channels like POS, Internet, IVR and mobile etc.

❖ The initial focus of NPCI would be to approach those banks who have not been issuing any payment card at all more specifically – Regional Rural Banks (RRBs) and urban co-operative banks.

❖ RuPay cards are accepted at all automated teller machines (ATMs) across India under National
Financial Switch, and under the NPCI's agreement with DFS. RuPay cards are accepted on the international Discover network.

❖ According to the data published by National Payments Corporation of India, there are around
145270 ATMs and more than 875000 Point of Sale (PoS) terminals in India under the RuPay platform.

❖ In addition to the ATMs and PoS terminals, RuPay cards are accepted online on 10,000 e-commerce websites with the same PIN which they use for ATM transactions.

❖ RuPay cards are accepted at all PoS terminals in India. To enable this, RuPay has certified 29
major banks in India to accept the RuPay card at their respective PoS terminals located at different merchant locations.

❖ NPCI has rolled out its chip card for high security transactions using EMV (Europay, Master-
Card and Visa) chip technology, which is a global standard for debit and credit cards. RuPay chip cards have an embedded microprocessor circuit containing information about the card holder and because transactions are PIN-based rather than signature- based.

❖ RuPay also provides a unified "Kisan Card", issued by banks across the country under Kisan Credit Card, enabling farmers to transact business on ATMs and PoS terminals.

BANKING AWARENESS STUDY MATERIAL

Payment Banks: Payments banks are expected to provide small savings accounts, payments/ remittance services to migrant labour workforce, low-income households, small businesses, other un-organised sector entities and other users, by enabling high volume-low value transactions in deposits and payments/ remittance services in a secured technology-driven environment. A
payment bank is covered under sections 5 (b) and 6 (1) (a) to (o) of the Banking Regulation Act, 1949.

How payment banks are different from regular banks: 
These banks can only receive deposits and remittances but cannot carry out lending activities. Aiming at financial inclusion, these banks will provide banking services to migrant labourers, low income households, etc.
1. What is the maximum amount that can be saved under payment bank account?
A: The maximum deposit that a payment bank can accept from an individual customer is Rs 1 lakh.

2. Can a credit card be issued under this scheme?
A: NO

3. Can a payment bank can issue a debit and ATM cards for easy transactions?
A: YES

4. What is the amount of loan that can be sanctioned by a payment bank?
A: No Loan facility. The Reserve Bank has clearly stated that a payments bank cannot undertake any lending activity.

5. Is it safe to save money with a payment bank?
A: YES. Besides normal CRR (Cash Reserve Ratio) to be maintained with the RBI, a payments bank will be required to invest 75% of its demand deposit balances in Statutory Liquidity Ratio (SLR) eligible government securities and treasury bills. Further, a maximum of 25% will have to be held in current and fixed deposits with other scheduled commercial banks.

6. What is the capital required for opening payments pay?
A: Rs 100 crore

7. Who led the committee on Comprehensive Financial Services for Small Businesses and Low Income Households formed in 2013?
A: Nachiket Mor

8. Who all got licences: Aditya Birla Nuvo, Airtel M Commerce, Vodafone m-pesa, Tech Mahindra, Vijay S Sharma of Paytm, Dilip Shanghvi of Sun Pharma, Reliance Industries, NSDL, Fino PayTech, Cholamandalam Dist and Department of Posts.

9. When the operations are likely to start?
A: The companies selected will be given "in-principle" approval for 18 months, after which they will be given licences if they fulfil all conditions stipulated by the RBI.

Questionnaire on Union Budget 2015-16

1. In the Union Budget, rate of Service Tax was hiked from 12% to ____ - 14%
2. In the Union Budget 2015-16, Fiscal deficit seen at how much per cent of GDP in 2015/16? - 3.9 %
3. How much amount has been allocated to the Rural Infrastructure Development Bank in the Union Budget 2015-16? - Rs. 25,000 crore
4. According to the Union Budget, two new IIM will be opened in which of the following states? -Jammu & Kashmir and Andhra Pradesh
5. According to the Union Budget 2015-16, Non-Banking Financial Companies (NBFCs) registered with Reserve Bank of India (RBI) above _______ will be now considered as financial institutions? - Rs. 5,000 crore
6. How much amount has been allocated for Rural Employment Guarantee Scheme in the Union Budget 2015-16? - 346.99 billion rupees
7. How much amount has been allocated to Defence sector in the Union Budget 2015-16? - Rs. 2,46,726 crore
8. According to the Union Budget, how much per cent of Revenue Deficit to be seen in 2015-16? - 2.8%
9. According to the Union Budget 2015-16, how much per cent, rate of corporate tax will be reduced over next four years? - 25%
10. According to the Union Budget 2015-16, now details of PAN has to mentioned compulsory for transactions for more than _____.- Rs. 1 lakh
11. In the Union Budget 2015-16, increase in the limit of health insurance premium from current Rs 15,000 to ____.Rs. 25,000
12. How much amount has been allocated for micro-irrigation watershed projects in the Union Budget 2015-16? - Rs. 5,300 Crore
13. How much amount has been allocated to Infrastructure sector in the Union Budget 2015-16? - Rs. 70,000 crore
14. According to the Union Budget 2015-16, Visa on arrival for how many countries? – 150
15. According to the Union Budget, Centre of film production, animation and gaming to come up in _____. AP
16. On which date Union Budget 2015-16 was presented in Parliament? - 28 February 2015
17. Name the Union Finance Minister who presented the Union Budget 2015-16 in Parliament? - Arun Jaitley
18. Personal Income Tax limit was not changed in Union Budget 2015-16. What is the present Personal I-T exemption limit? - Rs 2.5 lakh
19. Health Insurance Premium deduction hiked from Rs. 15,000 to?- Rs. 25,000 (for senior citizens to Rs. 30,000)
20. Transport allowance exemption hiked to Rs. 1,600, from ____ per month? - Rs.800
21. PAN card is must for all purchase above ______ rupees as proposed in Budget 2015-16? - Rs. 1 lakh
22. An additional _____% surcharge on people earning over Rs. 1 cr was put forth in the budget 2015-16? - 2%
23. What change was made in the Wealth tax? - Wealth tax abolished
24. DTC was dropped in the Budget 2015-16. Expand DTC? - Direct Taxes Code
25. Corporate tax to be reduced from 30% to ___ over next four years? - 25%
26. Mudra banks to be established with capital of Rs.___ crore?- 20000
27. Rs. ____ deduction for contribution to New Pension Scheme?- Rs. 50,000
28. GAAR implementation deferred by 2 years to? - April 2017
29. Service Tax rate hiked to ___% from 12.36%? - 14%
30. Tax free bonds were proposed in budget for? - Roads, railways, irrigation project

Headquarters of Nationalized Banks

 Allahabad Bank : Kolkata
 Bank of India : Mumbai
 Bank of Maharashtra : Pune
 Canara Bank:  Bangalore
 Central Bank of India : Mumbai
 Corporation Bank:  Mangalore
 Dena Bank : Mumbai
 Indian Bank : Chennai
 Indian Overseas Bank : Chennai
 Oriental Bank of Commerce : New Delhi
 Punjab National Bank : New Delhi
 Punjab & Sind Bank : New Delhi
 State Bank of India : Mumbai
 Syndicate Bank : Manipal
 UCO Bank : Kolkata
 Union Bank of India : Mumbai
 United Bank of India : Kolkata
 Vijaya Bank : Bangalore
 Andhra Bank : Hyderabad

TAGLINES OF DIFFERENT BANKS

1. Allahabad Bank A tradition of trust
2. Andhra bank For all your needs
3. Bank of Baroda India‘s international bank
4. Bank of India Relationships beyond banking
5. Bank of Maharashtra One family one bank
6. Canara Bank Together We Can
7. Central bank Central to you since 1911
8. Dena Bank Trusted Family Bank
9. Indian Bank Taking banking technology to the common man
10. Oriental bank of Commerce Where every individual is committed
11. Punjab National Bank The name you can bank on
12. State bank of India With you all the way
13. Syndicate bank Your faithful & friendly financial partner
14. Vijaya Bank A friend you can bank on

BANKS IN INDIA AS ON April 2015

1) There are a total of 27 PSBs in India [21 NationaliZed banks + 6 State bank group (SBI + 5 associates)]
2) At present there are 22 Private Banks functioning in India
3) At present there are 56 RRBs (Regional Rural Banks ) functioning in India.
4) At present there are 41 Foreign Banks functioning in India

Schemes/ Policy launched by Govt. of India

Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) - Agriculture Irrigation Scheme.
Key points:
 Scheme aims at providing irrigation facilities to every village in the country by converging ongoing irrigation schemes implemented by various ministries.
 Budgetary allocation: 1,000 crore rupees for fiscal year 2015-16.
 Funding Pattern: Centre- States will be 75: 25 per cent. In case of north-eastern region and hilly states it will be 90:10.

Sukanya Samriddhi Yojana: It is a small deposit scheme for the girl child.
Key points of the scheme –
 In one family, a maximum of two accounts can be opened for two girl children. The account can be transferred anywhere in India from one Post office/Bank to another.
 Age Limit: The upper age limit of the girl child for opening this account is 10 years. The govt. has given a relaxation of one year in the upper age limit for those opening accounts till December 1, 2015.
 Documents required - 1. Birth Certificate of the girl child. 2. Address proof. 3. Identity proof.
 Minimum & Maximum deposit: The minimum deposit under the scheme is Rs. 1000/-. The maximum deposit is Rs. 1.5 lakhs. There is no limit on the number of investments one can make in an account either in a month or in a year.
 Interest rate: The government will announce the interest rate of the scheme every year. However, the government of India has increased the rate of interest from 9.1% (2014-15) to 9.2% (2015-16) for this financial year.
 Maturity period: The maturity period of the scheme is 21 years from the date of account opening, though deposits need to be made only for the first 14 years.
 The minimum lock-in in period under the Sukanya Samriddhi Yojana is 11 years.

 Pradhan Mantri Kaushal Vikas Yojana (PMKVY):
 The scheme aims to impart skill training to youth with focus on first time entrants to the labour market and class 10 and class 12 drop outs.
 The scheme will be implemented by the Union Ministry of Skill Development and Entrepreneurship through the National Skill Development Corporation (NSDC). I
 It will cover 24 lakh persons and skill training would be based on the National Skill Qualification Framework (NSQF) and industry led standards

Bhagyashree scheme: 
It is girl child scheme was launched in Maharashtra. Bollywood actress Bhagyashree is the brand ambassador of the scheme.
Key points of the scheme:
 The state government will deposit an amount of 21200 rupees in bank for a girl child born in a Below the Poverty Line (BPL) family.
 The scheme aims at providing one 1 lakh rupees on maturity after the girl completes 18 years of age.
 The scheme would be linked to the Beti Bachao Beti Padhao scheme of Union Government.

 Rashtriya Avishkar Abhiyan (RAA): 
Former President of India Dr. APJ Abdul Kalam launched the Rashtriya Avishkar Abhiyan (RAA) in New Delhi. The abhiyan aims to inculcate a spirit of inquiry, creativity and love for Science and Mathematics in school children. Rashtriya Avishkar Abhiyan is a concept developed by the Ministry of Human Resource Development. RAA is an effort to take forward the Prime Minister Narednra Modi’s vision of Digital India, ‘Make in India’ and ‘Teach in India’.

About Pradhan Mantri Jeevan Jyoti Bima Yojana: 
It is a low premium insurance scheme which will link with the Pradhan Mantri Jhan Dhan Yojna. Key points of the scheme:
 Eligibility: Minimum 18 years and maximum 50 years and have bank account are eligible for the scheme. If the account is opened before attaining the age of 50 years, the life cover would remain intact up to the age of 55 years, if premium is paid regularly.

•  Premium payable for this scheme is Rs.330 per year i.e. less than Rs.1 per day. 
•  Risk coverage of Rs.2 Lakh in case of death for any reason. 
•  The premium paid will be tax-free under section 80C and also the proceeds amount will get tax-exemption u/s 10(10D). 

About Atal Pension Yojana (APY): 
It is a scheme mainly for workers in unorganised sector. The scheme will be administered by the Pension Fund Regulatory and Development Authority (PFRDA) and replace the previous government's Swavalamban Yojana NPS Lite.
Key points of the scheme: 

•  The subscribers who will joined the scheme would receive the fixed pension of Rs. 1000 per month, Rs. 2000 per month, Rs. 3000 per month, Rs. 4000 per month, Rs. 5000 per month, at the age of 60 years, depending on their contributions. 
•  Age limit: minimum 18 years and maximum age is 40 years. 
•  A subscriber can contribute for minimum period of 20 years or more and pension payment will start at the age of 60 years. 
•  The government of India has decided to co-contribute 50% of the subscriber's contribution or Rs. 1000 per annum, whichever is lower, to each eligible subscriber account, for a period of 5 years, i.e., from 2015-16 to 2019-20, who join the NPS before 31st December, 2015 and who are not income tax payers.

Pradhan Mantri Suraksha Bima Yojana: 
It is an insurance scheme which covers death or disablement of the policyholder caused due to accident or accidental injuries.
Key points of the scheme:

•  Age limit: Minimum 18 yrs and maximum 70 years.
•  The scheme will be a one year cover, renewable from year to year and would be administered through the Public Sector General Insurance Companies in collaboration with Banks.
•  Risk coverage: The Pradhan Mantri Suraksha Bima Yojana will offer an accidental death and full disability cover of Rs. 2 Lakh and for partial disability cover of Rs. 1 Lakh.
•  Premium: Rs.12 per annum. The premium will be directly auto-debited by the bank from the subscribers' account.

Important Committees

1. Deepak Mohanty committee – to frame action plan on financial inclusion.
2. A P Shah committee – A high level committee on the controversial issue of payment of Minimum Alternate Tax (MAT) by foreign institutional investors.
3. Bhupendra Yadav committee – to head panel on the Goods and Services Tax, GST bill
4. SS Ahluwalia committee - on the Right to Fair Compensation and Transparency in Land Acquisition Rehabilitation and Resettlement (LARR) (Amendment) Bill, 2015.
5. Vijay Kelkar committee: on Revisiting and Revitalizing the Public Private Partnership (PPP) Model of Infrastructure Development.
6. B N Navalawala committee: to head task force on inter-linking of rivers.
7. Ajay Shankar committee: to suggest simplified compliance for establishing new industries.
8. AK Bhargava committee: to look into the issues of "Net neutrality".
9. Dhirendra Swarup committee – to begin the preparatory work for Financial Redress Agency (FRA) that was recommended by the Financial Sector Legislative Reforms Commission (FSLRC).

FINANCIAL TERMS

1) Type of assets

The assets portfolio of the banks is required to be classified as

(1) standard assets(2) sub-standard assets(3) doubtful assets and(4) loss assets.Standard asset is one that does not disclose any problems and which does not carry more than normal risk attached to the business .An asset which has been classified as NPA for a period not exceeding 12 months is considered as sub-standard asset.Doubtful asset is one which has remained NPA for a period exceeding 12 months.An asset which is considered uncollectible and loss has been identified by the bank or internal or external auditors or the RBI inspection and the loss has not been written off is regarded as loss asset. 

2) Core Banking Solutions (CBS)

Core Banking Solutions is a buzz word in Indian banking at present, where branches of the bank are connected to a central host and the customers of connected branches can do banking at any breach with core banking facility.

3) Prime Lending Rate

The minimum short-term interest rate charged by commercial banks to their most creditworthy clients. It is a reference interest rate used by banks for its lending purposes.

4) Parties of a Cheque:

There are three parties to the cheque

1-Drawer or Maker

2-The bank (Drawee) - on whom the cheque is drawn (i.e. the bank with whom the account is maintained by the drawer)

3- Payee – Payee is the person whose name is mentioned on the cheque to whom or to whose order the money is directed to be paid.

5) Special Drawing Rights (SDRs)

It is a reserve asset (known as ‘Paper Gold’) created within the framework of the International Monetary Fund in an attempt to increase international liquidity, and now forming a part of countries official forex reserves along with gold, reserve positions in the IMF and convertible foreign currencies.

6) Negotiated Dealing System

The Negotiated Dealing System (NDS) for electronic dealing and reporting of transactions in government securities was introduced in February 2002. It facilitates the members to submit electronically, bids or applications for primary issuance of Government Securities when auctions are conducted. NDS also provides an interface to the Securities Settlement System (SSS) of the Public Debt Office, RBI, Mumbai thereby facilitating settlement of transactions in Government Securities (both outright and repos) conducted in the secondary market.

7) NDS OM (Order Match)

In August, 2005, RBI introduced an anonymous screen based order matching module on NDS, called NDS-OM. This is an order driven electronic system, where the participants can trade anonymously by placing their orders on the system or accepting the orders already placed by other participants. NDS-OM is operated by the Clearing Corporation of India Ltd. (CCIL) on behalf of the RBI.

8) What is Asset Management Companies?

A company that invests its clients' pooled fund into securities that match its declared financial objectives. Asset management companies provide investors with more diversification and investing options than they would have by themselves. Mutual funds, hedge funds and pension plans are all run by asset management companies. These companies earn income by charging service fees to their clients.

9) "Soiled Note:" means a note which, has become dirty due to usage and also includes a two piece note pasted together wherein both the pieces presented belong to the same note, and form the entire note.

(ii) Mutilated banknote is a banknote, of which a portion is missing or which is composed of more than two pieces.

10) Imperfect banknote means any banknote, which is wholly or partially, obliterated, shrunk, washed, altered or indecipherable but does not include a mutilated banknote.

BANKING AWARENESS PRACTICE QUESTIONS FOR ALL EXAMS

1. The main function of an Asset Management Company is to:
a) hold the securities of various schemes
b) manage the funds by making investments in various types of securities
c) hold its property for the benefit of the unit holders
d) act on behalf of SEBI
e) All the above

2. What is the purpose of reduction in Cash Reserve Ratio (CRR)?
a) Reduce Credit Flow
b) Enhance Credit Flow
c) Enhance availability of cash
d) Reduce Cash transactions
e) None of the above

3. In India, conventionally, bonds are issued by institutions in ____ sector while debentures by corporate
in ____ sector.
a) private, public
b) public, private
c) either a or b
d) cooperative, NBFC
e) None of the above

4. Who notifies Foreign Trade Policy?
a) RBI
b) DGFT
c) Govt. of India
d) ECGC
e) None of the above

5. Cash kept in the currency chest is owned by?
a) Currency Chest branch bank
b) State Bank of India
c) Central Government
d) Reserve Bank of India
e) None of the above

6. Expand the term LIBOR as used in financial banking sectors?
a) Local Indian Bank Offered Rate
b) London-India Bureau of Regulations
c) Liberal International Bank Official Ratio
d) London Inter Bank Offered Rate
e) None of the above

7. Which one of the following rates is NOT decided by the RBI?
a) Bank Rate
b) Repo Rate
c) Reverse Repo Rate
d) Income Tax Rates
e) Only a & b

8. When more than one bank is allowing credit facilities to one party in coordination with each other under a formal arrangement, the arrangement is generally known as:
a) Participation
b) Consortium
c) Syndication
d) Multiple Banking
e) All the above

9. The headquarters of International Monetary Fund is ___
a) Geneva
b) Paris
c) London
d) Manila
e) Washington

10. The first insurance company was started in India in 1818 at:
a) Kolkata
b) Chennai
c) Mumbai
d) New Delhi
e) Allahabad

11. Which one of the following is not a "Money Market Instrument"?
a) Treasury Bills
b) Commercial Paper
c) Equity Shares
d) Certificate of Deposit
e) All the above

12. The Banking Codes and Standards Board of India was registered on 18 February, 2006 under
which of the following RBI Act?
a) Banking Regulation Act
b) The Societies Registration Act, 1860
c) Cooperative Societies Act
d) None of the above
e) All the above

13. Who is the chairman of Governing Council of BCSBI (Banking Codes and Standards Board of
India)?
a) K.C. Chakrabarty
b) A.C. Mahajan
c) HS Khurana
d) M.V. Nair
e) Salman Khurshid

14. Payment of cheques is governed by sections under_____:
a) Banking Regulation Act 1949
b) RBI Act 1934
c) Negotiable Instruments Act 1881
d) Prevention of Money Laundering Act 2002
e) None of the above

15. The Headquarters of Bank of International settlement is located at:
a) New York
b) London
c) Washington
d) Paris
e) Basel (Switzerland)

16. The Act governing forex activities in India is:
a) RBI act
b) FERA
c) FEMA
d) SEBI
e) Finance Ministry

17. Sri Arun Shrivastava has taken over charge on 15.05.2015 as new CMD of ____ bank.
a) Union Bank of India
b) United Bank of India
c) Syndicate Bank
d) Andhra Bank
e) Allahabad Bank

18. RBI advised Banks that all new cards issued - debit and credit, domestic and International shall be EMV (Europay MasterCard Visa) chip and pin based cards with effect from:
a) 1st September 2015
b) 1st October 2015
c) 1st November 2015
d) 1st August 2015
e) 15th August 2015

19. Benefits in core banking system are:
a) Reliable centralized data recovery
b) Data warehousing and data mining technologies
c) Integrated customer centric services
d) Core infrastructure can be used for future expansion
e) All the above

20. NRI Deposits are classified under:
a) Capital a/c
b) Current a/c
c) Special Foreign Deposit Account
d) Either b or c
e) None of the Above

21. Which of the following can be called as intermediary in the Financial System?
a) Insurance companies
b) Banking companies
c) Mutual funds
d) All the above
e) None of the above

22. Which type of machine is used by Business Correspondents?
a) Micro ATMs
b) POS
c) Biometric Card Reader
d) Solar empowered
e) Water resistant

23. The ceiling for repatriation of funds from NRE/FCNR accounts is:
a) Rs.2 lakhs
b) Rs.5 lakhs
c) Rs.10 lakhs
d) No ceiling
e) None of the above

24. Some banks are financing big projects like construction of roads, bridges etc. Financing
such projects means banks are helping exactly in:
a) Infrastructural Development
b) Project Management
c) Developing core sector Industry
d) Financial Inclusion
e) All of the above

25. Debentures are governed by____
a) Law of Contract
b) BR Act
c) Company Law
d) Banking Regulation Act
e) None of the above

26. The maturity period of CDs (Certificate of Deposit) issued by banks should not be less than ____ and not more than _____, from the date of issue.
a) 7 days, 6 months
b) 7 days, 1 year
c) 15 days, 6 months
d) 15 days, 1 year
e) 90 days, 180 days

27. The Main activity of the Financial Intelligence Unit India (FIU-IND) is to control:
a) Tax Evasion
b) Money Laundering
c) Terrorism
d) Avoiding NPAs
e) Avoiding frauds in ATMs

28. Infusion of liquidity, by RBI, is done through _____ from / to banks under a _____ transaction.
a) borrowing, repo
b) borrowing, reverse repo
c) lending, repo
d) lending, reverse repo
e) None of the above

29. Crossing a cheque is a direction to the:
a) Drawer
b) Payee
c) Paying Banker
d) Clearing House
e) Collecting banker

30. The minimum amount for which a CD (Certificate of Deposit) can be issued is:
a) Rs. 1 lakh
b) Rs. 2 lakh
c) Rs. 5 lakh
d) Rs. 10 lakh
e) Rs. 20 lakh

31. A rate of exchange established between any two currencies on the basis of the respective quotation
of each currency in terms of a third currency is known as:
a) Cross rate
b) Merchant rate
c) Wash rate
d) Composite rate
e) None of the above

32. CIBIL as a credit bureau caters to:
a) Consumer segments
b) Commercial segments
c) Both commercial and consumer segments
d) Nationalized Banks only
e) Private Banks only

33. Kishore Biyani-led Future Group agreed to merge its retail business stock deal worth Rs. 750
crore to create one of the biggest supermarket chains with Rs. 15,000 crore turnover with which of the following organizations?
a) V-Mart Retail
b) Shoppers Stop
c) Bharti Retail
d) Koutons Retail India
e) None of the above

ANSWERS
1) b 2) b 3) b 4) b 5) d 6) d 7) d 8) b 9) e 10) a
11) c 12) b 13) b 14) c 15) e 16) c 17) c 18) a 19) e 20) a
21) d 22) c 23) d 24) a 25) c 26) b 27) b 28) c 29) c 30) a
31) a 32) c 33) c

Primary and Secondary Functions of Commercial Banks

A commercial bank is a type of bank that provides services such as accepting deposits, making business loans, and offering basic investment products. On day to day functioning it discharge many functions broadly classified as Primary and Secondary Functions mentioned below.
I. Primary Functions
1) Accepting Deposits
2) Advancing Loans
II. Secondary Functions
1) Overdraft Facility
2) Discounting Bills of Exchange
3) Agency Functions
4) General Utility Functions

Primary Functions
1. Accepting Deposits:
It is one of the most important function of commercial banks. The commercial banks accept the deposits at lower rates and provide the loans. They accept deposits in several forms according to requirements of different sections of the society.
 The main kinds of deposits are:
i) Current Account Deposits or Demand Deposits: 
These deposits refer to those deposits which are repayable by the banks on demand.
★ Such deposits are generally maintained by businessmen with the intention of making transactions with such deposits. The business men usually deposit from their excess cash balances and withdraw when they need.
★ They can be drawn upon by a cheque without any restriction.
★ Banks do not pay any interest on these accounts. Rather, banks impose service charges for running these accounts.
ii) Fixed Deposits or Time Deposits: 
Fixed deposits refer to those deposits, in which the amount is deposited with the bank for a fixed period of time.
★ Such deposits do not enjoy cheque-able facility.
★ These deposits carry a high rate of interest.
iii) Saving Deposits: 
These deposits combine features of both current account deposits and fixed deposits.
★ The depositors are given cheque facility to withdraw money from their account. But, some restrictions are imposed on number and amount of withdrawals, in order to discourage frequent use of saving deposits.
★ They carry a rate of interest which is less than interest rate on fixed deposits. It must be noted that Current Account deposits and saving deposits are chequable deposits, whereas, fixed deposit is a non-chequable deposit.
2. Advancing of Loans:
 The deposits received by banks are not allowed to remain idle. So, after keeping certain cash reserves, the balance is given to needy borrowers and interest is charged from them, which is the main source of income for these banks.
 Different types of loans and advances made by Commercial banks are:
i) Cash Credit: The Cash credit refers to a loan given to the borrower against his current assets like shares, stocks, bonds, etc. A credit limit is sanctioned and the amount is credited in his account. The borrower may withdraw any amount within his credit limit and interest is charged on the amount actually withdrawn.
ii) Demand Loans: Demand loans refer to those loans which can be recalled on demand by the bank at any time. The entire sum of demand loan is credited to the account and interest is payable on the entire sum.
iii) Short-term Loans: They are given as personal loans against some collateral security. The money is credited to the account of borrower and the borrower can withdraw money from his account and interest is payable on the entire sum of loan granted.

Secondary Functions
1. Overdraft Facility: 
It refers to a facility in which a customer is allowed to overdraw his current account up to an agreed limit. This facility is generally given to respectable and reliable customers for a short period. Customers have to pay interest to the bank on the amount overdrawn by them.
2. Discounting Bills of Exchange: 
It refers to a facility in which holder of a bill of exchange can get the bill discounted with bank before
the maturity. After deducting the commission, bank pays the balance to the holder. On maturity, bank gets its payment from the party which had accepted the bill.
3. Agency Functions: 
Commercial banks also perform certain agency functions for their customers. For these services, banks charge some commission from their clients.
 Some of the agency functions are:
i) Transfer of Funds: 
Banks provide the facility of economical and easy remittance of funds from place-to-place with the help of instruments like demand drafts, mail transfers, etc.
ii) Collection and Payment of Various Bill Payments: 
Commercial banks collect cheques, bills, interest, dividends, subscriptions, rents and other periodical receipts on behalf of their customers and also make payments of taxes, insurance premium, etc. on standing instructions of their clients.
iii) Purchase and Sale of Foreign Exchange:
Some commercial banks are authorized by the central bank to deal in foreign exchange. They buy and sell foreign exchange on behalf of their customers and help in promoting international trade.
iv) Purchase and Sale of Securities:
Commercial banks buy and sell stocks and shares of private companies as well as government securities on behalf of their customers.
v) Income Tax Consultancy:
They also give advice to their customers on matters relating to income tax and even prepare their income
tax returns.
vi) Trustee and Executor: 
Commercial banks preserve the wills of their customers as trustees and execute them after their death as executors.
4. General Utility Functions: 
Commercial banks render some general utility services like:
i) Locker Facility: 
Commercial banks provide facility of safety vaults or lockers to keep valuable articles of customers in safe custody.
ii) Traveller's Cheques: 
Commercial banks issue traveler's cheques to their customers to avoid risk of taking cash during their journey.
iii) Letter of Credit: 
Commercial banks issue letters of credit to their customers to certify their creditworthiness.
iv) Underwriting Securities: 
Commercial banks also undertake the task of underwriting securities. As public has full faith in the creditworthiness of banks, public do not hesitate in buying the securities underwritten by banks.
v) Collection of Statistics: 
Banks collect and publish statistics relating to trade, commerce and industry. Hence, they advice customers on financial matters. Commercial banks receive deposits from the public and use these deposits to give loans. However, loans offered are many times more than the deposits received by banks. This function of banks is known as 'Money Creation'.

Banking Terms

Banking Book

The banking book comprises assets and liabilities, which are contracted basically on account of relationship or for steady income and statutory obligations and are generally held till maturity.

These securities are accounted for in a different way than those in the trading book, which are traded on the market and valued by the performance of the market.

In other words, an accounting book that includes all securities that are not actively traded by the institution, that are meant to be held until they mature.

Bank Rate

The Bank Rate (BR) has been defined in See 49 of RBI Act 1934 as the 'standard rate at which RBI is prepared to buy or rediscount bills of exchange or other commercial papers eligible for purchase under this act'. The RBI uses its lending power to banks (a) to influence their credit allocation and (b) to develop a genuine bill market in India.

Also, it is called an official interest rate at which the central bank rediscounts the approved bills held by a commercial bank. If the central bank wishes to control credit and inflation, it will increase the bank rate.

CBS

• CBS stands for Core Banking Solutions.
• Core or centralized banking solution is a heart of banking system
• This is a process by which a bank has interconnect their maximum branches through wide area network and only this system provide a facility of any branch or any time banking.

ICOR

ICOR stands for Incremental Capital Output Ratio.

ICOR is the Ratio of investment to growth which equals to one, divided by the marginal product of Capital. The higher the ICOR indicates lower the productivity of capital and lower the ICOR reflects high productivity of Capital. ICOR is the topic or instrument by which the Economic growth rate of company decided.

ICOR is calculated as:

ICOR = ­Annual Investment/Annual Increase in GDP

Global Depository Receipt (GDR)

Global Depository Receipt is a bank certificate issued in more than one country for shares in a foreign company. These shares are held by a foreign branch of an International bank. These shares are trades as domestic shares but are offered for sale globally through the various bank branches. A GDR is a very similar to an American Depository Receipt.

Automatic Stabilizer

Automatic Stabilizer is program that enhances and diminishes automatically for equalizing current economic trends without assistance of government. The best example for automatic stabilizer is unemployment insurance as it automatically replaces the lost income for people who have lost their jobs.

Also, Automatic Stabilizers are features of the tax and transfer systems that tend by their design to offset fluctuations in economic activity without direct intervention by policymakers.

Selective Credit Control

Selective Credit Control (SCC) refers to the directives issued by RBI u/s 21 of Banking Regulation Act 1949 to regulate flow of bank credit against security of sensitive/selected commodities. With a view to prevent speculative holding of essential commodities with the help of bank credit, RBI issues from time to time, directive covering the margin requirements and the level and quantum of accommodation that could be granted against the SCC items.

Selective controls are designed to check the conduct of lenders only, they also influence the attitude of the borrowers, by prescribing the terms on which certain kinds of loans may be made.

BANKING AWARENESS PRACTICE QUESTIONS

1. A draft issued by the bank has been lost by the payee. He sends a letter to the issuing bank to stop payment. Bank will:
a) Note caution and will advice the payee to contact purchaser of the draft
b) Not act on the request
c) Stop payment
d) Performs no action
e) None of the above

2. Mutual funds are required to be registered with:
a) AMFI
b) SEBI
c) IBA
d) RBI
e) NABARD

3. What is Yield Curve Risk?
a) It is a line of graph plotting the yield of all maturities of a particular instrument
b) Yield curve changes its slope and shape from time to time
c) Yield curve can be twisted to the desired direction through the intervention of RBI
d) All of the above
e) None of the above

4. The biggest international financial centre in the world:
a) Frankfurt
b) Geneva
c) London
d) New York
e) Paris

5. The expansion of BIFR, in the context of the Indian Industry is:
a) Board for Industrial and Financial Reconstruction
b) Bureau for Industrial and Financial Reconstruction
c) Board for Investment and Financial Reconstruction
d) Bureau for Investment and Financial Reconstruction
e) None of these

6. The largest financial conglomerate of India is:
a) HDFC Bank
b) ICICI Bank
c) IFCI
d) SBI
e) None of these

7. Under which of the following methods of depreciation, amount of depreciation varies every
year?
a) Written Down Value Method
b) Straight Line Method
c) Amount of depreciation does not vary on year to year basis
d) Either a or b
e) None of these

8. Usually, the validity period of an Income Tax Refund Order is:
a) 1 month
b) 2 months
c) 3 months
d) 6 months
e) 4 months

9. Which of the following is true about "White Card"?
a) It is related to companies producing milk products
b) It does not carry on its face, the brand of the issuer
c) It is meant to covert blank money into the economy
d) It is a card that provides white money
e) None of these

10. First bank in India to launch its interactive banking service through Dish TV:
a) HSBC
b) ICICI Bank
c) HDFC Bank
d) Axis Bank
e) None of these

11. First Indian Governor of the RBI:
a) C.D. Deshmukh
b) Sachindra Ray
c) S. Mukherjee
d) D.I.G. Patel
e) None of the above

12. CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) has been set up on
the recommendations of:
a) Narashimham Committee
b) Ghosh Committee
c) Chore Committee
d) Kapoor Committee
e) Krishna Committee

13. The primary relationship between the banker and the customer is that of:
a) Trustee and beneficiary
b) Debtor and Creditor
c) Principal and agent
d) Lesser and lessee
e) None of these

14. A debt becomes time-barred after:
a) One year
b) Two and a half year
c) Three years
d) Five years
e) Six years

15. In the matter of handling bills of exchange for collection, the relationship between customer and
the bank is:
a) Trustee and the beneficiary
b) Principal and agent
c) Bailor and bailee
d) All of the above
e) None of the above

16. Hypothecation is:
a) A transaction of conditional sale
b) A legal transaction whereby goods may be made available as security for a debt
c) Transfer of ownership by the borrower to the lender
d) Either a or b
e) None of the above

17. Payment of a cheque may be countermanded by the ___
a) Payee
b) Drawer
c) True owner
d) Drawee
e) None of these

18. J.S. Verma Committee Report relates to:
a) Strengthening of weak banks
b) Corporate Governance
c) Bank Mechanization
d) All of the above
e) None of the above

19. AUsance Bill when presented for acceptance has to be accepted/ dishonoured within:
a) 24 hours
b) 36 hours
c) 48 hours
d) 60 hours
e) 26 hours

20. Invoice is a:
a) Accounting document
b) Legal document
c) Commercial document
d) All of the above
e) None of the above

21. When does a person become insolvent?
a) When he left with no property of his own
b) When he declares an insolvent by the Court
c) When he terminates from a job he was holding
d) When he declares himself to be an insolvent
e) None of the above

22. When two parties make an arrangement to exchange future cash flows, it is called:
a) Options
 b) Arbitrage
c) Swap
d) Futures
e) None of the above

23. Which of the following banks enjoys the reputation of being at the top in market capitalization among all the private banks?
a) ICICI Bank
b) HDFC Bank
c) Axis Bank
d) Yes Bank
e) IDBI Bank

24. "Claused Bill of Landing" is one which indicates:
a) Remaining constant in project cost
b) Escalation in Project Cost
c) Decrease in Project Cost
d) All of the above
e) None of the above

Answers:
1) a 2) b 3) d 4) c 5) a 6) d 7) a 8) c 9) b 10) c
11) a 12) d 13) b 14) c 15) b 16) b 17) b 18) a 19) c 20) c
21) b 22) c 23) b 24) b

Banking related developments during the year 2014

Kerala became first state with bank accounts for all families.

Federal Bank bagged CNBC TV18 Financial Inclusion Award.

ICICI Bank customer can recharge Delhi Metro cards with SMS.

Yes bank has recently launched 'Saaf suthra Bharat' campaign in Sri Nagar. The bank successfully launched this campaign contributing to the Swachch bharat abhiyan.

Axis Bank launches ''smart selfservice terminal'' that enables the customers to deposit as well as withdraw cash from the same machine.

Private sector Indus Ind Bank has launched video-branch, claiming to be a first-of-its-kind service; enabling customers interact with the staff of the bank through video conference facility.

ICICI bank has launched a new mobile named iMobile app for its windows phone customers.

The Reserve Bank of India has cancelled the certificate of registration of NBFCs (Siber Financial Services Private Limited, Sri Vishnu Finance & Investment Private Limited, Margdarsi Investment
and Leasing Company Private Limited.) for carrying on the business of non-banking financial institution.

CSR was made 2% compulsory through Companies Act 2013. RBI further simplifies KYC Norms regarding bank accounts as "One Documentary Proof of
Address is enough to open bank account".

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

State bank of India has tied up with Bangalore-based mobile payments service provider Ezetap Mobile Solutions Pvt. Ltd. in association with Ezetap the bank has planned to roll out "ATM cum POS terminals".

Kotak Mahindra bank has introduced ''Kaypay payment system''. This allows the face book users to send money to each other.

Insurance Regulatory and Development Authority (IRDA) aligned it's corporate governance
and disclosure norms in accordance with the new Companies Act, 2013, through a 12-member
committee.

Non-Scheduled UCBs are permitted to "Internet Banking (View Only) Facility" for Customers.

Bank of India got approval to open branch in Vietnam.

As per the new guidelines of the Reserve Bank of India (RBI), banks in six metros - New Delhi,
Mumbai, Chennai, Kolkata, Hyderabad and Bangalore - are free to charge other bank customers
beyond 3 ATM transactions per month. Banks have also been allowed to restrict free
transactions to 5 for customers at it's own ATM network.

HDFC became first listed Indian company to have 75% shareholding by FIIs.

S&P (Standard and Poor) downgraded credit rating of Indian Overseas Bank to speculative grade.

FDI limits allowed - Public Sector Banks: 20%. Private Sector Banks: 74%.

Kotak Mahindra bank to acquire ING Vysya Bank.

RBI allows FIIs to buy equity in Yes Bank.

Exim Bank to set up Rs. 1,500 crore funds to assist ship-building industry. To give a boost to ship building in the country, the Export-Import Bank of India (Exim Bank) is planning to set PMJDY scheme, was announced in Modi's first Independence Day speech on 15 August 2014.