IBPS SPECIALIST OFFICERS Professional Knowledge Practice Questions

1. One of the following is not included in the 7 P’s of Marketing. Find the same_____________

(A). Placement

(B). Price

(C). Production

(D). Promotion

(E). Product

Ans. (C). Production

2. Analysis of marketing problem helps in ______________

(A). Evaluating marketing opportunities

(B). Reducing marketing staff

(C). Reducing profits

(D). Good communication

(E). Motivation

Ans. (A). Evaluation Marketing Opportunities

3. Innovation is marketing is same as _________________

(A). Motivation

(B). Perspiration

(C). Aspiration

(D). Creativity

(E). Team work

Ans. (D). Creativity

4.Market Segmentation is required for _________________

(A). preferential market

(B). OTC Marketing

(C). Internal Marketing

(D). Identifying sales persons

(E). Identifying prospects

Ans. (E). Identifying prospects

5. Bank ATMs are__________________

(A). Delivery outlets

(B). market plans

(C). Personalized Products

(D). Tools for overcoming buyers resistance

(E). Motivating tools

Ans. (C). Personalized Products

6. Internet Banking helps in __________________

(A). door-to-door canvasing

(B). Making more number of cold calls

(C). Easy access to customer transections

(D). Market Survey

(E).Market research

Ans. (C). Easy access to customer transections

7.Cross-selling means ________________

(A). selling by a cross-section of people

(B). selling to HNIs

(C). selling to a cross-section of people

(D).Selling to NRIs

(E).Selling other products to existing customers

Ans. (E).Selling other products to existing customers

8.The USP of current account is _______________

(A). High minimum balance

(B). no restrictions on transactions

(C). no internet payable

(D). restricted deposits

(E). Easy credits

Ans. (B). no restrictions on transactions

9. The USP of a car loan is_________________

(A). High rate of interest

(B).Easy EMIs

(C).Lump-sum loans

(D).Available only to doctors

(E). available only to businessmen

Ans. (B).Easy EMIs

10.Leads for home loans can be obtained from______________

(A). cooperative societies

(B). Existing borrows

(C). builders

(D). builders

e .Traders

Ans. (C). builders

11. Leads for industrial loans can be obtained from______________

(A). Reserve bank of India

(B). District industrial centers

(C). colleges

(D). Export houses

(E). Trade centers

Ans. (B). District industrial centers

12. SME Means____________

(A). Selling and Marketing Establishment

(B). Selling and managing employees

(C). Sales and Marketing entity

(D). small and medium enterprises

(E).small and micro entities

Ans. (C). Sales and Marketing entity

13.The target group for SME Loan is _______________

(A).All salaried persons

(B). government undertakings

(C). all entrepreneurs

(D). all students

(E). all housewives

Ans. (C). all entrepreneurs

14.Leads for tractor loans can be availed from_______________

(A). farm laborers

(B). Authorized dealers of tractors and farm equipment’s

(C). Bullock cart owners

(D). Marginal land owners

(E). RTA Officers

Ans. (B). Authorized dealers of tractors and farm equipment’s

15. Customization result in ________________

(A). Customer exodus

(B). Customer retention

(C). Customer complaints

(D). Training of staff

(E). varying the interest rates

Ans. (B). Customer retention

16.Find the correct sentence__________

(A).Higher the price, higher are the sales

(B).More number of sales pesons leads to more sales

(C). mission statement is part of market plan

(D). better sales incentives means better performance

(E). all customers are profitable customers

Ans. (C). mission statement is part of market plan

17. Banc assurance can be sold to ____________

(A).all banks

(B). all insurance companies

(C). insurance agents

(D). all existing and prospective bank customers

(E). stock brokers

Ans. (D). all existing and prospective bank customers

18. The target group for bulk deposits is _____________

(A). salaried persons

(B). small traders

(C). corporate MNCs

(D). Housewives

(E). Minor children

Ans. (C). corporate MNCs

19. Debit cards can be best sold to_____________

(A). Existing customers

(B). school children’s

(C). trusts

(D). waqf board

e .Educations institutes

Ans. (A). Existing customers

20.A low EMI indicates___________

(A). high loan burden

(B). long repayment period

(C). cheap loans

(D). costly loans

(E). very short repayment period

Ans. (C). cheap loans

21. EMI can be marketing tool when________________

(A). EMI is very low

(B). EMI is very high

(C). EMI is fluctuating

(D). EMI is constant

(E). EMI is ballooning

Ans. (A). EMI is very low

22. Advertisements are necessary for ______________

(A). only old products

(B). launching new products

(C). only costly products

(D). only obsolete products

(E). advertisements are wasteful expenses

Ans. (B). launching new products

23. Publicity is required for ____________________

(A). Generating more number of leads

(B). better training of sales persons

(C). market survey

(D). Product designing

(E). OTC Marketing

Ans. (A). Generating more number of leads

24. NAV is the price of __________________

(A). Entire fund value

(B). one unit of a fund

(C). surrender value

(D). average value of shares

(E). dividends paid in a year

Ans. (B). one unit of a fund

25.A Master policy in the case of Life insurance indicates___________________

(A). policy is sale

(B). policy is in the name of servant

(C). only one life is assured

(D). there are several beneficiaries

(E). life assured should be a male

Ans. (D). there are several beneficiaries

26. Customer database is useful for ________

(A). advertisements

(B). word-of-mouth publicity

(C). CRM Functions

(D). PR functions

(E). Sales persons training

Ans. (C). CRM Functions

27. CRM(Customer Relationship Management) is ______________

(A). A pre-sales activity

(B). A tool for lead generation

(C). an ongoing daily activity

(D). the task of a DSA

(E). back office duty

Ans. (B). A tool for lead generation

28. Find the incorrect answer_________________

(A). cross-selling is an expensive way of marketing

(B). market segmentation can boost lead generations

(C). customer lifetime value is a marketing tool

(D). surrogate marketing is a type of viral marketing

(E). internet banking can replace ATMs

Ans. (E). internet banking can replace ATMs

29. Financial inclusion needs canvassing the accounts of ______________

(A). Financial Institutions

(B). NRIs

(C). HNIs

(D). Housewives

(E). Persons below a specified income level

Ans. (E). Persons below a specified income level

30. Effective retail banking presupposes____________

(A). Large Premises

(B). Huge kiosks

(C). big sales force

(D). coordination between marketing and front office staff

(E). More products

Ans. (D). coordination between marketing and front office staff

Golden Peacock Award for Central Bank

Central Bank of India received the Golden Peacock Award for innovative product/service for its retail product Cent Sahayog launched in October 2011.

Designed to strengthen the micro and small manufacturers and service providers (MSE) through a process of fast credit delivery, this product aims to bring this largely un-banked segment into banking fold. Instituted by the Institute of Directors (IOD), the Golden Peacock Awards are declared annually for excellence in the fields of quality, training and innovative product/service among Indian industries.

Economic growth revised down to 8.4%

The Central Statistics Office January 31 lowered the gross domestic product (GDP) growth estimate for 2010-11 to 8.4 per cent from an earlier estimated level of 8.5 per cent.

The downward revision came in the quick estimates of national income, consumption expenditure, saving and capital formation for 2010-11 released by Mr Srikant Jena, Minister of State (Independent charge) for Statistics and Programme implementation.

He said that these detailed estimates have been prepared based on the latest available data on agricultural production, industrial production, Government expenditure and also detailed data available from other source agencies.

The GDP at factor cost at constant prices in 2010-11 has registered a growth of 8.4 per cent over the previous year. The Gross National Income has registered a growth of 7.9 per cent over the previous year. The major source of growth in the GDP has been from the services sector which has grown at the rate of 9.3 per cent. The agriculture sector growth has also been impressive at 7 per cent.

The growth of the secondary sector which includes manufacturing and construction sector was 7.2 per cent. The GDP at constant prices at market prices has grown at 9.6 per cent.

The gross domestic savings at current prices in 2010-11 has been estimated at Rs 24.81 lakh crore which constituted 32.3 per cent of GDP at market prices. The savings rate in 2010-11 has declined from 2009-10.

Major reason for the decline is due to decrease in the rates of financial savings of household sector from 12.9 per cent to 10 per cent and the private corporate sector from 8.2 per cent to 7.9 per cent. The rate of savings of public sector has increased from 0.2 per cent to 1.7 per cent in 2010-11.

The Gross Domestic Capital Formation at current prices has increased from Rs 23.64 lakh crore to Rs 26.92 lakh crore in 2010-11. The rate of capital formation at current prices was 35.1 per cent in 2010-11 against 36.6 per cent during 2009-10.

Per capita income crosses Rs 50,000 in 2010-11: CSO

Reflecting growing prosperity, India’s per capita income grew by 15.6 per cent to Rs 53,331 per annum in 2010-11, crossing the half-a-lakh rupees mark for the first time, according to government data.

“The per capita income at current prices is estimated at Rs 53,331 in 2010—11, as against Rs 46,117 for the previous year, depicting a growth of 15.6 per cent,” said the Quick Estimates of National Income released by the Central Statistical Office (CSO).

The growth in per capita income comes on the back of 8.4 per cent expansion of the Indian economy during the last fiscal.

Per capita income is the earnings of each Indian if the national income is evenly divided among the country’s population of around 120 crore. It is an important indicator of overall prosperity in the country.

However, the increase in per capita income at constant (2004—05) prices, after discounting for inflation, was at 6.4 per cent in 2010—11. It was Rs 35,993 in 2010—11, as against Rs 33,843 in the previous year.

According to the figures, the size of the economy at current prices rose to Rs 71,57,412 crore last fiscal, up 17.5 per cent from Rs 60,91,485 crore in 2009—10.

Based on 2004-05 prices, the Indian economy expanded by 8.4 per cent during the fiscal ended March, 2011.

The GDP at constant (2004—05) prices in 2010—11 has been estimated at Rs 48,85,954 crore, as against Rs 45,07,637 crore in 2009—10, as per the Quick Estimates.

The rate of growth in the 2009—10 fiscal stood at 8.4 per cent, as per provisional estimates which were also released January 31.

GENERAL AWARENESS PRACTICE QUESTIONS

1. The Govt of India has decided to declare which of the following rivers a National River?

a) Brahmaputra
b) Yamuna
c) Ganga 
d) Kaveri    
e) None of these

2. Who amongst the folIowing economists gave the concept of "economies of scale", which says "many goods and services can be produced more cheaply in long series"?

a) Edward C Prescott
b) Amartya Sen
c) Gary S Becker
d) Edmund S Phelps
e) Paul Krugman

3. Very often we read in newspapers/magazines about "Sovereign Wealth Funds". Which of the following is/ are the correct description of the same?

(A) These are the funds or the reserves of a government or central bank of a country which are invested further to earn profitable returns.

(B) These are the funds which were accumulated by some people over the years but were not put in active circulation as they retain them as Black Money for several years.

(C) The funds which are created to be used as relief funds or bailout packages are known as sovereign funds.

a) Both B & Conly
b) Only B
c) Only C
d) Only A
e) None of these

4. Very often we read about Special economic Zones (SEZs) in newspapers. What is the purpose of promoting SEZs in India?

(A) They are established to promote exports.

(B) They are established to attract investments from foreign countries.

(C) They are established to help the poorest of the poor in India as the activities of these zones are reserved only forthe poors and those living below poverty line.

a) Only A    
b) Only B
c) Only C
d) Both A & B only
e) None of these

5. The ratio of the Cash Reserves that the banks are required to keep with the RBI is known as

a) Liquidity Ratio    
b) SLR
c) CRR    
d) Net Demand & Time Liability
e) None of these

6. The-Govt ofIndia in order to provide some relief to the exporters announced a relief-package of Rs

a) 1000 cr
b) 2500 cr
c) 4000 cr    
d) 5000 cr
e) 7000 cr

7. The availability of cash and other cash-like marketable instruments that are useful in purchases and investments are commonly known as

a) Cash crunch
b) Liquidity
c) Credit
d) Marketability
e) None of these

8. The White Tiger is a book written by

a) Amitav Ghosh    
b) Arundhati Roy
c) VS Naipaul    
d) Kiran Desai
e) Aravind Adiga

9. Besides USA and France, India has a Civil Nuclear Deal with

a) Britain    
b) Russia
c) Germany 
d) Canada
e) Australia

10. Jnanpith Award is given for excellence in the field of

a) Music    
b) Literature    
c) Sports
d) Films    
e) Social Services

11. As per newspaper reports, India's trade gap has been showing a negative growth for the last few months. "Trade Gap" means what?

a) Gap between total GDP and total consumption
b) Gap between total imports and total exports
c) Gap between available liquidity and expected demand in next five months
d) Gap between budgeted revenue collection and actual collection of the same
e) None of these

12. 'Equity schemes managed strong NAV gains, which, boost their assets' was a news in some financial newspapers. What is the full form of the term NAVas used in above head lines?

a) Nil Accounting Variation
b) Net Accounting Venture
c) Net Asset Value
d) New Asset Venture
e) None of these

13. As per reports published in various newspapers, mutual fund companies showed 94 per cent growth in their total profits during 2009-10. This means the profits earned by these companies were 94 per cent

a) in their total investments they made collectively during the year
b) more than their profits during previous year
c) of the total capital of the company
d) less than the total expenditure of the companies
e) None of these

14. As per the reports published in some major news papers "ADAG companies" made good profits during the year. ADAG companies are popularly known as

a) Companies owned by Tata Group
b) Aditya Birla Companies
c) Reliance Companies
d) Companies owned by Aptech
e) None of these

15. "Mutual Funds reported exceptional performance in 2009-10" was the news in major financial news papers recently.  What is a mutual fund?

A. A type of collective investment scheme that pools money from many investors and invests it in stocks, bonds or other money market instruments.

B. It is a subsidiary of a bank or financial company created specially to raise money to be invested in a particular industry, ie housing or insurance etc. The money raised thus cannot be invested anywhere else.

C. When several banks and financial companies come together and create a common pool of money to fund mega infrastructural project like bridges, roads, power plants etc, the common pool is known as Mutual Fund.

a) Only A
b) Only B
c) Only C
d) All A, B & C
e) None of these

16. We very frequently read about Europe's sovereign debt crisis these days. Which of the following statements/is/are true about the same?

A. In early 2010 the Euro crisis developed in some countries like Greece, Spain and Portugal.

B. This created a credit default swap between the countries of the European Union ..

C. SAARC countries have offered some assistance to some of the severely affected countries like Portugal, Spain and Greece.

a) Only A
b) Only B
c) OnlyA & B
d) All A, B & C
e) None of these

17. As per the announcement made by the RBI, some Stock Exchanges in India are allowed to introduce Plain Vanilla Currency Options. The term Plain Vanilla Currency Options is associated with which of the following activities/operations?

a) Dollar-Rupee Exchange Rate
b) Floating of Commercial Papers
c) Launch of new mutual funds
d) Deciding the opening price of a share on a particular" business day
e) None of these

18. The process of "Artificial Application of Water to the soil usually for assisting in growing crops" is technically known as

a) water harvesting
b) irrigation
c) water recharging
d) percolation
e) none of these

19. Waste Water generates which of the following gases. which is more powerful and dangerous than C02?

a) Nitrogen    
b) Sulphur dioxide
c) Hydrogen
d) Methane
e) None ofthese

20. Which of the following days was observed as World Water Day 2010?

a) 20th June
b) 22nd July
c) 22nd March
d) 20th May
e) None of these

21. "Indira Gandhi Canal", which is around 450 km long, provides irrigation facility mainly to which of the following states?

a) Punjab
b) Haryana
c) Madhya Pradesh
d) Gujarat
e) Rajasthan

22. Who amongst the following is the director of the popular Hindi film "OyeLucky ! Lucky Oye"?

a) Mani Ratnam    
b) David Dhavan
c) Dibakar Banerjee    
d) R Balakrishnan
e) None of these

23. Which of the following is NOT a missile developed by the Defence Research and Development. Organisation (DRDO) ?

a) Shaurya
b) Pinaka
c) Brahmos
d) Agni    
e) Nag

24. Which ofthe following metals is used for generation of Nuclear Energy by most of the Nuclear Power Plants?

a) Zinc    
b) Platinum    
c) Uranium
d) Nickel    
e) None of these

25. Indus Water Treaty is a pact on' sharing of river water between India and

a) Bangladesh    
b) Pakistan
c) Nepal
d) Afghanistan
e) Myanmar

26. Which of the following is/are considered a Renewable Source of Energy?

A. Wind Energy

B. Solar Energy

C. Nuclear Energy

a) OnlyA  
b) OnlyB
c) OnlyC
d) Only A & B
e) All A, B' & C

27. Mrs. Pratibha Patil is the _______the President of India 

a) 10th President of India
b) 11th President of India
c) 12th President of India
d) 1st President of India
e) 15th President of India

28. How many intertwined rings are shown in the Olympic Flag used these days in the games?

a) Five
b) Six   
c) Seven
d) Three
e) None of these

29. India's 'Look East' trade policy is designed to help particularly members of which of the following group of nations?

a) SAARC    
b) ASEAN
c) WTO
d) NAT
e) EU

30. Which of the following countries has signed a 22-Point Agreement with Madhesi People's Right Forum (MPRF)?

a) China    
b) Nepal    
c) India
d) Bangladesh    
e) Myanmar

31. 'Brahmos' is designed to be used by which of the following?

a) Indian Navy
b) Indian Army
c) Indian Air Force
d) Border Security Force
e) All of these

32. Which of the following agencies/organisations is setting up India's first Natural Resource Data Centre in Kolkata?

a) RBI 
b) SEBI
c) NABARD
d) S~C    
e) BARC

33. The Finance Minister ofIndia recently made a mention that Infrastructure Development in India should be done on PPP model only. What is the full form of'PPP'?

a) Purchasing Power Parity
b) Public Private Partnership
c) Purchase Produce Provide
d) People's Programme & Priority
e) None of these

34. The Global Non-Violence Day was observed on which of the following days?

a) 15th August
b) 14th November
c) 19th September
d) 2nd October
e) 30th January

35. The period for 11 th Five Year Plan is

a) 2005-10
b) 2006-11    
c) 2007-12
d) 2008-13    
e) None of these

36. Who amongst the following has played the main/lead role in the film Chak De India?

a) Abhishek Bachchan    
b) Salman Khan
c) Aamir Khan    
d) Shah Rukh Khan
e) None of these

37. 'Ranji Trophy' is associated with the game of

a) Hockey    
b) Football
c) Badminton
d) Cricket
e) Tennis

38. Which ofthe following awards is given for excellence in literary work?

a) Bharat Ratna
b) Shanti Swamp Bhatnagar Award
c) DronacharyaAward
d) Arjuna Award
e) Pulitzer Prize

39. Roger Federer, who won the US Open 2007 Tennis Championship, is a citizen of

a) Belgium
b) France
c) Russia
d) USA    
e) Switzerland

40. Which of the following awards is NOT a 'Gallantry I Award'?

a) Mahavir Chakra    
b) Vir Chakra
c) Vishista Sewa Medal
d) Ashok Chakra
e) Saraswati Saminan

41. As per the to Commerce Ministry data released on 2 January 2012, India’s exports recorded their slowest pace of growth in two years in November 2011. What was the per centage of growth recorded?

a) 4.2%
b) 3.8%
c) 2.2%
d) 0.94%

42. The capital market regulator SEBI on 3 January 2012 allowed auctioning of securities through stock exchanges and introduced a new method for institutional placement of stocks. Which of the following facts related to the above statement is/are not true?

1. Under the institutional placement programme (IPP), shares can be sold only to qualified institutional buyers.

2. There shall be at least 25 allottees in every IPP issuance. No single investor shall receive allotment for more than 25% of the offer size

3. The IPP method can be used to increase public holding by 10% and could be offered to only qualified institutional buyers with 25% being reserved for mutual funds and insurance companies

4. Under the IPP, companies will have to announce the ratio of buy-back, as is done in the case of rights issues and fix a record date for determination of entitlements as per shareholding on record date

a) Only 1
b) Only 3
c) Only 2
d) Only 4

43. What is the Finace Ministry’s decision on the rates applicable on small savings instruments schemes that would be announced on April 1 each year?

a) rate would remain valid till the maturity of the scheme
b) rate would change in the first qurter of that respective year
c) rates would change depending on different maturity period
d) rates would remainvalid for six months post the maturity

44. Scientists discovered unknown species off the coast of Antarctica. Consider the following statements: i) The temperature in this region rises to 380 degree Celsius. Ii) There is plenty of light in this region.

Which of the above statements is/ are correct?

a) Only i
b) Only ii
c) Both i and ii
d) Neither i nor ii

45. Scientists produced artificial human semen to help infertile men.  Consider the following statements:

i) The scientists grew the sperm by enveloping the germ cells in a special compound called agar jelly.

ii) The artificial human semen could help infertile men father their own children.

Choose the right option:

a) Both i and ii are correct.
b) Only i is correct.
c) Only ii is correct.
d) Neither i nor ii is correct.

46. Health Authorities in Australia recently detected Deadly Disease, Murray Valley Encephalitis.  The disease is caused by the__.

a) Flies
b) Mosquitoes
c) Birds
d) Dogs

47. Which PSU announced on 2 January 2012 that its board approved in a meeting held on 30 December 2011 the switching over to internationally-accepted Gross Caloric Value-based pricing mechanism?

a) BHEL
b) ISPAT
c) CIL
d) IOC

48. Mukesh Ambani’s Reliance Industries Ltd (RIL) entered the media and entertainment sector by making a major investment in one of India’s largest broadcast companies. Name the broadcast company.

a) Network18 Group
b) Adlabs Films
c) Balaji Telefilms
d) Bag Films

49.  India approved the acquisition of French advanced missile systems to arm the Mirage-2000 fighter jets. Consider the following statements:

i)  The cabinet committee on Security cleared the contract for the fire and forget MICA with French company MBDA.

ii) MICA are interception and aerial combat missiles.

Choose the right option:

a) Both i and ii are correct.
b) Only i is correct.
c) Only ii is correct.
d) Neither i nor ii is correct.

50.  The Union government approved Katra-Quazigund Railway line project. The project is located in__.

a) Jammu and Kashmir
b) Bihar
c) Punjab
d) Haryana

51.

(1) Theatre director, screenplay writer and actor Satyadev Dubey, credited with introducing existential and absurd theatre, passed away on 25 December 2011. Which facts about the concerned person is/are not true?

(2) he got attracted to the post-1947 theatre and joined Theatre Unit, the theatre group-cum-school founded by Ebrahim Alkazi

(3) Dubey came into prominence with Dharamvir Bharati’s radio-play Andha Yug that brought to the fore the pervasive criminal and homicidal tendencies during the times of war.

(4) He penned screenplays/dialogue of some acclaimed films in the 1970s, including Shyam Benegal's Nishant, Ankur, Kalyug and Bhumika

(5) He won the Filmfare Award for Best Dialogue in 1980 for the film Ankur

a) Only 1
b) Only 4
c) 2 & 3
d) Only 2

52. Lok Sabha on 27 December 2011 passed the Lokpal and Lokayukta bill, 2011. Consider the following statements:

i) The setting up of Lokayuktas by the states would not be mandatory.

ii) The constitutional amendment bill fell through.

Choose the right option:

a) Both i and ii are correct.
b) Only i is correct.
c) Only ii is correct.
d) Neither i nor ii is correct.

53.

(1) Reserve Bank of India deregulated non-resident external (NRE) deposits on 16 December 2011 allowing banks  to offer higher interest rates to dollar-denominated accounts. Which of the following facts related to the above statement is/are not true?

(2) Reserve Bank freed the rates on non-resident external accounts, offering interest as high as 9.6% per annum

(3) Following RBI’s deregulation five Indian banks, including HDFC Bank and Yes Bank on 23 December 2011 raised their interest rates on such deposits in order to lure foreign money

(4) Private lender Yes Bank increased the interest rates on fixed deposits held by non-resident Indians (NRIs) to 8.4 per cent from 3.82 per cent

(5) The new rates are effective from 24 December for fresh deposits as well as those being renewed on maturity.

a) 1 & 2
b) Only4
c) Only 3
d) 1 & 4

54. According to the RBI data, India's foreign exchange reserves fell by what amount to $302.1 billion during the week ended 16 December  2011 on account of a fall in foreign currency assets?

a) $4.67 billion
b) $3.33 billion
c) $5 billion
d) $5.75 billion

55. Telecom Commission, the decision-making body of the Department of Telecommunications recommended a uniform licence fee of what per cent of adjusted gross revenues (AGR) as against the prevalent rate of 6-8 per cent?

a) 10%
b) 8%
c) 5.2%
d) 9.3%

56.  NASA's Kepler mission discovered the first Earth-size planets orbiting a sun-like star outside our solar system. These planets are called ___ and____.

a) Kepler-20e; Kepler-20f
b) Kepler-20a; Kepler-20b
c) Kepler-20c; Kepler-20d
d) Kepler-20m; Kepler-20n

57. Scientists at the Salk Institute for Biological Studies report discovered a missing link between the body’s biological clock and sugar metabolism system. Consider the following statements
i) Sugar Metabolism is a process by which the body uses sugar for energy.

ii) If the human body produces too little insulin, the amount of sugar in the blood increases abnormally, a condition known as hyperglycemia.  Choose the right option:

a) Both i and ii are correct.
b) Neither i nor ii is correct.
c) Only i is correct.
d) Only ii is correct.

58. Name the gene found by the neuroscientists, which could help in creating and altering memory.

a) Mpas 4
b) Npas 4
c) Npas 3
d) Mpas 2

59. Name the Rashtriya Lok Dal (RLD) leader who was inducted into the Union Cabinet as civil aviation minister on 18 December 2011.

a) Ajit Singh
b) Jayant Chaudhary
c) Devendra Nagpal
d) Sanjay Singh Chauhan

60. Popularly known as Adam Gondvi, this Hindi poet who  wrote revolutionary poetry focusing on the pathetic state of dalits and the poor breathed his last in Lucknow on 18 December 2011. Name the poet.

a) Bharat Bhusan
b) Ram Nath Singh
c) Uday Prakash
d) Shail Chaturvedi
e) Naresh Mehta

61. The Union cabinet of India on 22 December 2011 approved __ percent share for minorities within the 27% OBC quota in jobs and university seats.

a) 4.5
b) 5.6
c) 3.4
d) 5

62. The Manipur Legislative Assembly passed the Manipur Lokayukta Bill, 2011. Manipur will be the __state in North-Eastern India to have alegislation of Lokayukta.

a) Second
b) Third
c) First
d) Fourth

63.

(1) Former Czech president Vaclav Havel who had been suffering from chronic respiratory problems died on 18 December 2011. Which of the following facts mentioned about him is/are not true?

(2) He was the tenth and last president of Czechoslovakia (1989–92) and the second President of the Czech Republic (1993–2003)

(3) He played a seminal role in the Velvet Revolution that ended four decades of repression by a regime which Havel ridiculed as Absurdistan.

(4) He co-authored the human rights manifesto Charter 77, which drew wide attention in the West.

(5) As president, he oversaw the country's transition to democracy and a free-market economy and also the peaceful 1993 breakup into the Czech Republic and Slovakia.

a) Only 3
b) Only 1
c) 1 & 4
d) Only 4

64. The enigmatic leader of North Korea Kim who led his nation for 17 years through a devastating famine while frustrating the United States and other global powers with approach to talks on giving up nuclear arms in return for food and other assistanceon died on 17 December 2011 after he suffered a massive heart attack. Name the leader

a) Kim Jong-il
b) Kim Il-sung
c) Kim Jong-un
d) Kim Jong-chul

65. Which Controversial film based on the 116-year-old Mullaperiyar dam and directed by Sohan Roy made it to a shortlist for the Oscars under the Best Picture category?

a) Rio and The Muppets
b) Undefeated
c) Project Nim
d) Dam 999

66. India and Australia on 16 December 2011 signed an agreement to amend DTAA (Double Taxation Avoidance Agreement).  DTAA was signed between India and Australia in__.

a) 1990
b) 1991
c) 1992
d) 1995

67. The Indian women's hockey team defeated Ireland 4-1 win to clinch the bronze medal in the four-nation tournament held in Parana, Argentina in December 2011. Which team won the gold medal?

a) South Africa
b) USA
c) Argentina
d) Pakistan

68. Who defeated ace badminton player and World No. 4 Saina Nehwal of India in the women’s singles final of the $500000 BWF World Super Series badminton championship in China on 18 December 2011?

a) Zhang Ning
b) Xie Xingfang
c) Xu Huaiwen
d) Wang Yihan

69. Which India striker was on 20 December 2011 voted Player of the Year by the All India Football Federation?

a) Sunil Chhetri
b) Savio Medeira
c) Kyrshan Lyngshing
d) Babu Mani

70. Diesel consumption in Delhi declined by a startling 26% in 2010-11 compared to 2009-10. Delhi was however found to have used 2.24% more petrol in the same period. As per the latest Delhi government figures, the consumption of diesel in the city stood at what amount in 2010-2011?

a) 10.98 lakh metric tonnes
b) 7.5 lakh metric tonnes
c) 8.11 lakh metric tonnes
d) 6 lakh metric tonnes

71. Fears of continuing economic slowdown, lack of decision making at the centre, rising fiscal deficit combined with not-so-impressive revenue collections upset Dalal Street investors on 20 December 2011. Which of the foolowing facts  related to the above statement is/are not true?

1. Fears of continuing economic slowdown, lack of decision making at the centre, rising fiscal deficit combined with not-so-impressive revenue collections led to a 204 points loss in sensex that ended at 15175

2. The slide on 20 December 2011 was triggered by FII selling which recorded a net outflow of Rs 600 crore, taking the month’s total net outflow to about Rs 1700 crore.

3. The combined effect of the market’s slide and the depreciation of the rupee forced India to exit from the select group of countries with a $1 trillion market capitalization

4. There was not even a single ADR issue in 2011. However, companies raised about $220 million through GDRs (Global Depository Receipts) during 2011

a) Only 1
b) 3 & 4
c) Only 3
d) Only 2

72. Credit rating agency Moody's on 21 December 2011 upgraded the credit rating of the Indian government's bonds from the speculative to investment grade. Which of the following facts related to the above statement is/are true?

1. According to a release issued by the Finance Ministry, Moody's unified India's local and foreign currency bond ratings at Baa3

2. Moody's Investor Service upgraded its local currency rating for Indian government bonds to Baa3 which is speculative grade as compared to the earlier Ba1 which is junk or investment grade.

3. India's foreign currency bond ceiling is unchanged at Baa2, and the foreign currency bank deposit ceiling is Baa3. The local currency bond and bank deposit ceilings are unified at A1.

4. The government's local currency short-term rating has been changed to P-3 from NP, indicating the government's ability to repay short-term debts.

a) Only 2
b) Only 1
c) 1 & 3
d) Only 4

73. According to official data released here on 22 December 2011, food inflation dropped sharply to an almost four-year low of what per cent during the week ended 10 December indicating an overall easing of prices?

a) 1.5%
b) 1.32%
c) 1.81 %
d) 2.32%

74. Which of India's leading commodity bourses on 20 December 2011 became the world's fifth-largest commodity futures exchange?

a) National Multi Commodity Exchange of India
b) Bharat Diamond Bourse
c) Multi Commodity Exchange
d) Bombay Stock Exchange

75. Ravi Ruia decided on 21 December 2011 to step down as chairman of which of the following London-listed after a trial court admitted a criminal chargesheet filed by the investigating agency, CBI?

a) Essar Energy
b) Essar Shipping
c) Essar Oil
d) Eaasr Technologies

76. Which company won the award for Alternative Thinking and Driving Positive Change in the Fleet Owner category at the Mahindra Navistar Transport Excellence Awards 2011 at Hotel Ashok here on 20 December 2011?

a) Tata Motors
b) Hero Group
c) Edu Comp
d) Agarwal Packers & Movers

77. Which PSU lender decided to aggressively market its gold loan scheme for farmers to prevent defaults after the agriculture sector witnessed a sharp spike in bad debt in the past one year?

a) Union Bank
b) United Bank of India
c) Industrial Development Bank of India
d) State Bank of India

78. Who did the Central Government appoint as Chairman and Managing Director (CMD) of Andhra Bank?

a) B. A. Prabhakar
b) O. P. Bhatt
c) Pratip Chaudhuri
d) S. Vishvanathan

79. The directorate general of hydrocarbons (DGH), the technical arm of the oil ministry approved which company’s proposal to commence production from Bhagyam, the second-largest oil field in the Rajasthan block?

a) Essar Oil
b) ONGC
c) Cairn India
d) Indian Oil

80. Scientists discovered that the protein__ is responsible for regulating fatty acid oxidation in the liver and is critical for metabolism.

a) CPT1
b) CTP1
c) CTT1
d) CPT2

81. British Scientists recently developed a technology to produce pocket TV. Consider the following statements:

i) Scientists developed a new form of light-emitting crystals, known as quantum dots.

ii) These tiny crystals are 100000 times smaller than the width of human hair.

Choose the right option:

a) Both i and ii are correct.
b) Only i is correct.
c) Only ii is correct.
d) Neither i nor ii is correct.

82. Scientists developed a hydrogel that regenerate healthy and scar-free tissue on skin damaged by severe burns.  Consider the following statements:

i) The hydrogel helps in formatting of new blood vessels and skin including hair follicles.

ii) The injured soldiers, fire victims and people with third degree burns can avail of the gel.

Choose the right option:

a) Both i and ii are correct.
b) Only i is correct.
c) Only ii is correct.
d) Neither i nor ii is correct.

83. The Sangita Kalanidhi M.S. Subbulakshmi Award was presented to whom at the inauguration of the 85th annual conference of the Music Academy in Chennai on 15 December 2011?

a) S.R. Nathan
b) Trichy Sankaran
c) Subramania Pillai
d) Subramaniyam Iyer

84. The 40th anniversary of vijay diwas was celebrated on which day marking the finest hour of the Indian armed forces when they defeated Pakistan, leading to the creation of Bangladesh in 1971?
a) 12 December
b) 15 December
c) 16 December
d) 18 December

85. The Himachal Pradesh Cabinet on 15 December 2011 approved amendment to the state industrial policy. Consider the following statements:

i) The amended industrial policy seeks to promote environmentally sustainable development in the state and encourage cleaner production and adoption.

ii) Under this policy, disincentive industries will be put on negative list.

Choose the right option:

a) Both i and ii are correct.
b) Only i is correct.
c) Only ii is correct.
d) Neither i nor ii is correct.

86. The Supreme Court of India directed Tamil Nadu to ensure that the water level in the Mullaperiyar dam does not exceed __but declined to entertain Kerala’s plea for reducing the level to__.

a) 136 feet; 120 feet
b) 120 feet; 136 feet
c) 140 feet; 112 feet
d) 150 feet; 140 feet

87. A parliamentary committee on 13 December 2011 rejected the proposal to allow what percentage foreign direct investment in the insurance sector?

a) 51%
b) 49%
c) 43%
d) 29%

88. According to data from research body All India Organisation of Chemists and Druggists (AIOCD), Indian drugmakers posted a certain per cent month-on-month growth in sales of November 2011 which was the highest in the past 14 months. What was the per cent of sales growth projected for the month?

a) 23%
b) 31%
c) 21%
d) 43%

89. The government waived loan of handloom weavers in India to help revive the sector under the scheme of Revival, Reform and Restructuring Package for Handloom Sector. What amount of loan was waived?

a) Rs 548.35 crore
b) Rs 420.66 crore
c) Rs 506.64 crore
d) Rs 3521 crore

90. A committee on mutual funds, constituted by SEBI in december 2011 recommended to the regulator’s board to break down the bifurcation within the fee structure known as expense ratio. Which of the following facts are not true with regard to the above statement?

1. Currently  mutual funds are allowed to charge up to 2.25% as expense ratio. fund houses are allowed to accept only 1.25% as asset management charges

2. Funds with large corpuses currently charge 1.55% as expenses charges

3. SEBI was suggested to keep overall scheme expenses unchanged at 2.25% for schemes with assets under management not exceeding Rs 400 crore

4. Expense ratio is more than important in debt schemes where the rate of return is not hig.

a) 1 & 2
b) 3 & 4
c) 1 & 3
d) Only 2
e) None of the above

91. Which player became the first player to win the Orders of Merit on both sides of the Atlantic on 11 December 2011 when he shot a closing 66 to finish third in the Dubai World Championship?

a) Luke Donald
b) Alvaro Quiros
c) Rory McIlroy
d) Paul Lawrie

92. Which country defeated Spain 1-0 to win for the 4th time hockey’s Champions Trophy title on 11 December 2011?

a) Pakistan
b) New Zealand
c) Australia
d) Greece

93. Name the woman squash player who on 10 December 2011 annexed the elusive women’s title while in the Senior National Squash Championship in Chennai.

a) Sarah Fitz-Gerald
b) Dipika Pallikal
c) Anaka Alankamony
d) Sushma Pillai

94.

(1) The Centre for Development of Telematics (C-DoT) on 5 December 2011 transferred indigenously-developed Gigabit Passive Optical Network (GPON) technology to seven telecom equipment manufacturers. Which of the following facts about the technology is not true?

(2) The GPON technology is a pivotal component required for broadband connectivity over optical fibre.

(3) C-DOT indigenously designed and developed GPON technology, which can be used to provide triple play (voice, video and data) through fibre-based networks

(4) The GPON technology was tested, validated, field-evaluated and made operational in MTNL's/VSNL’s network in Ajmer (Rajasthan)

(5) The technology will help fulfil requirements of major national programmes like the National Optical Fibre Network and the State Wide Area Network.

a) Only 1
b) Only 3
c) 1 & 4
d) Only 4

95. Bank lending to the priority sector grew at what percentagein October 2011 on an annual basis due to lower offtake by agriculture and MSME segments as well as decline in micro credit?

a) 10%
b) 12%
c) 13.7%
d) 8.3%

96. With the inauguration of the first state-of-the-art ATDC-SMART (Skill for Manufacturing Apparels through Research and Training) in Egmore, Chennai, the Ministry of Textiles launched which of the following schemes?

a) National Technology Mission for Technical Textiles
b) Integrated Skill Development Scheme
c) Technology Upgradation Fund Scheme (TUFS) For Textile
d) Rural Textiles Technology Development Skill


97. Which bank signed a memorandum of understanding with Life Insurance Corporation of India (LIC) to use the National Electronic Funds Transfer (NEFT) facility  to facilitate electronic funds transfer of policy payments to policyholders?

a) IDBI
b) Corp Bank
c) Indian Overseas Bank
d) Dhanlaxmi Bank

98. World Aids Day is observed anually on 1 December 2011. What was the theme of World AIDS Day 2011?

a) Getting to Zero
b) Stigma and Discrimination
c) Women & AIDS
d) Force For Change: World AIDS Campaign With Young People

99.

(1) An icon of Indian cinema and evergreen star Dev Anand died at the age of 88 in London on 3 December 2011 (4 December according to IST) after suffering a massive cardiac arrest. Which of the following facts about him is/are not true?

(2) Dev Anand started his career with Prabhat Films' Hum Ek Hain (1946) soon after he joined IPTA

(3) Anand started producing films after the success of Ziddi. He launched his own company Navketan in 1949 which, by 2011, had produced 31 films

(4) His first colour film, Johny Mera Naam with Waheeda Rehman was based on the novel of the same name by R. K. Narayan

(5) The Government of India honoured him with the Padma Bhushan in 2001 and the Dadasaheb Phalke Award in 2002

a) 1 & 4
b) Only 3
c) 2 & 4
d) 1 & 4

100. The Golden Peacock Award for the Best Film was given to which of the following films at the 42nd International Film Festival of India which came to an end at the Kala Academy in Panaji, Goa on 3 December 2011?

a) Russian film Elena
b) an Israeli film Restoration
c) Columbian Film Porfirio
d) Malayalam film Adaminte Makan Abu

 

Answer
1.	(c)	26.	(d)	51.	(b)	76.	(d)
2.	(e)	27.	(c)	52.	(a)	77.	(d)
3.	(d)	28.	(a)	53.	(c)	78.	(a)
4.	(d)	29.	(b)	54.	(a)	79.	(c)
5.	(c)	30.	(b)	55.	(b)	80.	(a)
6.	(d)	31.	(b)	56.	(a)	81.	(a)
7.	(b)	32.	(c)	57.	(a)	82.	(a)
8.	(e)	33.	(b)	58.	(b)	83.	(b)
9.	(b)	34.	(d)	59.	(a)	84.	(c)
10.	(b)	35.	(c)	60.	(b)	85.	(a)
11.	(b)	36.	(d)	61.	(a)	86.	(a)
12.	(c)	37.	(d)	62.	(b)	87.	(b)
13.	(b)	38.	(e)	63.	(b)	88.	(c)
14.	(c)	39.	(e)	64.	(a)	89.	(d)
15.	(a)	40.	(e)	65.	(d)	90.	(d)
16.	(a)	41.	(b)	66.	(b)	91.	(a)
17.	(a)	42.	(c)	67.	(c)	92.	(c)
18.	(b)	43.	(a)	68.	(d)	93.	(b)
19.	(d)	44.	(a)	69.	(a)	94.	(b)
20.	(c)	45.	(a)	70.	(c)	95.	(a)
21.	(e)	46.	(a)	71.	(d)	96.	(b)
22.	(c)	47.	(c)	72.	(a)	97.	(d)
23.	(a)	48.	(a)	73.	(c)	98.	(a)
24.	(c)	49.	(a)	74.	(d)	99.	(b)
25.	(b)	50.	(a)	75.	(a)	100.	(c)

U.N. report pegs India’s growth at 7.7% in 2012

India’s economic growth rate will remain subdued at 7.7 per cent in 2012 and 7.9 per cent in 2013, says a U.N. report.

“India’s economy is forecast to expand at a pace similar to 2011 in the following two years... at 7.7 per cent in 2012 and 7.9 per cent in 2013,” the U.N. report on ‘World Economic Situation and Prospects 2012’ said.

The report cautioned, “The downside risks to the regional outlook have sharply increased in recent months... particularly in case of India. Double-dip recessions in Europe and the United States would have a significant impact on economic activities across South Asia.”

The government recently lowered the GDP growth target for the current fiscal to 7 per cent from the earlier estimate of 8.5 per cent.

However, the study gave a positive outlook on South Asia’s economic growth prospects and projected that the region’s economies will grow by 6.7 per cent and 6.9 per cent in 2012 and 2013, respectively, accelerating beyond the 6.5 per cent growth rate experienced in 2011.

South Asia constitutes India, Pakistan, Nepal, Iran, Bangladesh and Sri Lanka.

The report also raised a red flag on India’s fiscal deficit target, saying the Indian government is unlikely to achieve its deficit target of 4.7 per cent of the GDP for 2011-12 as lower growth has brought down tax revenues and disinvestment in state-run companies has been put on hold.

Nevertheless, the study has given a positive outlook for India’s job market, saying, “India is enjoying gains in employment rates.”

FTA unlikely at EU Summit

With both sides still poles apart on issues of services, procurement policy, duty cuts on automobiles and wines and spirits, India and the European Union (EU) are working hard to put in a place a “political agreement” during the India-EU Summit slated for February 10 as the free trade agreement (FTA) is unlikely to happen.

“There is good news and bad news. The good news is that we are in intense phase of negotiations. The bad news is that we are behind schedule for the India-EU FTA which it is not going to happen before or during the India-EU Summit in New Delhi next month,” EU Delegation Ambassador to India Joao Cravinho told journalists here.

Mr. Cravinho said negotiations were going on this week and that the EU Director General of trade and chief negotiator would be in India next week to hold intense discussions on the various issues. The Trade Commissioner of EU would also be meeting Commerce and Industry Minister Anand Sharma next week in a bid to bring about a consensus on majority of the issues. “But I must caution that no FTA is happening before February 10. We are still away from such an agreement but efforts are being made to arrive at a political agreement on what is likely to form part of the chain of events leading to a FTA,” he said.

Refusing to go into the specifics of the disagreement on the FTA negotiations, he said both sides had reached finality on goods issue. However, there were persisting differences on the issue of services and procurement policy.

RBI releases third monetary policy review: CRR reduced to 50 basis points, Repo rate unchanged

Reserve Bank of India here on 24th January 2012 announced the statement on Third quarter Monetary Policy Review, making the markets surprised with unexpected cut in Cash Reserve Ratio(CRR) and it also estimates the GDP growth to be only 7% as against the previous expected 7.6%. 

Global growth prospects for 2012 have deteriorated in an environment of increasing concerns over the sovereign debt crisis in the euro area amidst limited monetary and fiscal policy space. Given the weak growth prospects in advanced economies and past monetary tightening undertaken by EDEs to contain inflation, growth in the EDEs has also been moderating. Accordingly, global growth during 2012 is expected to be lower than the International Monetary Fund’s September 2011 projection of 4.0 per cent.

Here are some important points in the Governor's Statement:

Inflation: Although non-oil commodity prices showed some correction in 2011, crude oil prices have remained firm. Supply limitations and continued ultra accommodative monetary policies in major advanced economies pose upside risks to commodity prices in 2012. Currency depreciation in EDEs witnessed in the second half of 2011 and the lagged pass-through to domestic prices could also add to inflationary pressures in EDEs. 

Cash Reserve Ratio: It has been decided to: reduce the cash reserve ratio (CRR) of scheduled banks by 50 basis points from 6.0 per cent to 5.5 per cent of their net demand and time liabilities (NDTL) effective the fortnight begining January 28, 2012. As a result of the reduction in the CRR, around `320 billion of primary liquidity will be injected into the banking system.

Repo Rate: The policy repo rate under the liquidity adjustment facility (LAF) has been retained at 8.5 per cent.

Reverse Repo Rate: The reverse repo rate under the LAF, determined with a spread of 100 basis points below the repo rate, stands at 7.5 per cent.

Marginal Standing Facility (MSF) Rate: The Marginal Standing Facility (MSF) rate, determined with a spread of 100 basis points above the repo rate, stands at 9.5 per cent.

Bank Rate: The Bank Rate has been retained at 6.0 per cent.

Indian Banking Industry : Emerging Trends

Fierce   competition,   innovative strategies   and   competitive   spirit   have satiated  banks   with   palpating activities.    Banks   are   adopting different strategies in an environment of  increased  competitive  pressure. Active strategies with focus on new fields  of  business  and  defensive strategy concentrating on cost cutting are   embraced   together.   Flawless service  delivery  is  the  target  with diffused   liabilities    and   multiple choices available to customers.

Technology   has   completely changed  the  nature  and  pace  of delivery of banking services world over.   The   speed   has   considerably improved alongwith the quality of the   services.   Various   delivery channels are available with banks for customers.   Broadly,  the  levels  of banking  services  offered  through internet can be categorized in to three types namely—Basic Level Service, Simple Transactional Websites and Fully Transactional Websites.

Indian banking was provided an opportunity by the liberalization in 1990s to extend its working para-meters beyond geographical borders. The  banking  reform  has  indeed helped   to   restore   semblance   of efficiency and stability. Our banking industry enjoys greater autonomy, operational flexibility and liberalized norms allowing it to be more com-petitive.

Technology   Driven   Indian Banking System

The     growing   universalisation and internationalisation of banking operations have altered the face of banks   from   one   of   mere   inter-mediator to one of provider of quick, efficient and consumer centric ser-vices. There has been massive use of technology  across  many  areas  of banking business in India, both from the asset and the liability side of a bank’s balance sheet.

Banks   pass   through   phases namely the inception phase, where the technology behind the application is in its infancy and a substantial amount of investment is required so as  to  make  the  application  widely available   commercially;  the  growth phase,   where   the   application   is increasingly available to the custo-mers and the technology behind the application is widely available; and the  maturity  phase,  wherein  the application is in widespread use and institutions not offering such applica-tions are likely to be at a competitive disadvantage.

The introduction of MICR based cheque  processing—a  first  for  the region, during the years 1986-88 was one of the earliest steps in Indian banking on the march of technology.

1.   Technological Changes in Indian Banking System

Core   Banking   Systems—The introduction   of   Core   Banking Systems   (CBS)  which  was  at  its nascent stages has become full blown and all banks are at varying stages   of implementation of Core Banking Systems in their branches.  There are 5 ingredients that form part of the Core Banking system viz. General Ledger   Customer,    Information System, Deposit System, Loan System and   Management   Information System.

INFINET—INFINET    (Indian Financial Network), is used by a large number of banks for funds and non-funds-based message transfers, and   is made available by the Institute     for Development and Research in Banking   Technology   (IDRBT), Hyderabad.  INFINET  is  perhaps among the few networks in the world which uses the latest in technology and   security   called   Public   Key Infrastructure—PKI, which is not only state-of-the-art and robust but also well within the legal requirements    of the Information Technology Act, 2000.

National   Electronic   Funds Transfer System—RBI introduced an electronic funds transfer system to facilitate an efficient, secure, econo-mical, reliable and expeditious system of funds transfer and clearing in the banking sector throughout India, and to relieve the stress on the existing paper-based   funds   transfer   and clearing  system  called  National Electronic  Funds  Transfer  System (NEFT System).

The parties to a funds transfer under  this  NEFT  System  are  the sending  bank,  the  sending  Service Centre,  the  NEFT  Clearing  Centre, the receiving Service Centre and the beneficiary branch. The EFT scheme enables transfer of funds within and across cities and between branches of a bank and across banks.

National    Electronic   Clearing Services—The objective of National Electronic Clearing Services (NECS) is to facilitate centralised processing for     repetitive   and   bulk   payment instructions.  Sponsor  banks  shall submit NECS data at a single centre viz. at Mumbai. While NECS (Credit) shall  facilitate  multiple  credits  to beneficiary accounts at destination branch against a single debit of the account of a User with the sponsor bank, the NECS (Debit) shall facilitate multiple debits to destination account holders against single credit to user account.

Centralized Funds Management System—The    Centralized   Funds Management  System  (CFMS),  is  a system   to   enable   operations   on current   accounts   maintained   at various offices of the Bank, through standard message formats in a secure manner. It is set up, operated and maintained by the Reserve Bank of India.

Mobile   Banking   Services—Mobile payments is defined as infor-mation exchange between a bank and its customers for financial transactions  through  the  use  of  mobile phones.  Mobile  payment  involves debit/credit to a customer’s account’s on the basis of funds transfer instruc-tion received over the mobile phones.

Only Indian Rupee-based dome-stic services shall be provided. Use of mobile  banking  services  for  cross border inward and outward transfers is  strictly  prohibited.  Only  banks which have implemented core bank-ing  solutions  would  be  permitted     to provide mobile banking services. Banks shall file Suspicious Trans-action  Report  (STR)  to  Financial Intelligence Unit–India (FIU-IND) for mobile banking transactions as in the case of normal banking transactions. To ensure inter-operability between banks,  and  between  their  mobile banking  service  providers,  banks shall adopt the message formats like ISO 8583, with suitable modification to  address  specific  needs.   Hence, banks offering mobile banking should notify the customers the timeframe and the circumstances in which any stop-payment instructions could be accepted.

 

2. Current Position of Technological Banking Services

Drift    Towards    Innovative Banking

1. Presence of Women on Boards

Banking in the West has tradi-tionally  been  a  male  bastion  and continues  to  be  so.  Study  titled “Women  on  Corporate  Boards  in India  2010”  ranked  the  companies listed in the Bombay Stock Exchange (BSE-100)  in  terms  of  the  gender diversity of their boards, with those with the highest percentage of women on their boards appearing at the top. The BSE-100 comprises 26 industry classifications   with   the   banking industry making up the largest group of companies.

Indian banks, with better gender equality on board than their western counterparts,  scraped  though  the economic slowdown unscathed.

Kalpana  Morparia  heads  the Indian   arm   of   global   financial leviathan J. P. Morgan Chase  &  Co; Meera Sanyal is the country executive for  Royal  Bank  of  Scotland  and; Manisha  Girotra  is  the  managing director of Union Bank of Switzer-land’s India operations.  K. J. Udeshi is the Chairman of Governing Council of BCSBI.

2. Mobile Branches

Domestic scheduled commercial banks (other than RRBs) were granted general permission by RBI, to opera-tionalise Mobile branches in Tier 3 to Tier 6 centres (with population upto 49,999 as per Census 2001) and in rural, semi urban and urban centres in  the  North  Eastern  States  and Sikkim, subject to reporting.

The  mobile  branch  should  be stationed in each village/location for a reasonable time on specified days and   specified   hours,   so   that   its services could be utilized properly by customers. The business transacted at the mobile branch shall be recorded in the books of the base branch/data centre.  The  bank  may  give  wide publicity about the mobile branch     in  the  village,   including   details   of ‘specified days and working hours’ at various locations so as to avoid any confusion to local customers; and any change in this regard should also be publicized.

3.     Social  Responsibility,  Sustain-able   Development   and   Non-Financial Reporting

Government infused into bank-ing  sector  the  ‘socialist’  constituent through   nationalization   of   major banks.

CSR  entails  the  integration  of social and environmental concerns by companies in their business opera-tions as also in interactions with their stakeholders. SD essentially refers to the process of maintenance of the quality of environmental and social systems in the pursuit of economic development.  NFR  is  basically  a system of reporting by organizations on their activities in this context, especially as regards the triple bottom line, that is, the environmental, social and economic accounting.

RBI  circular  (dated  December 20, 2007) on Role of Banks in Cor-porate Social Responsibility, Sustain-able Development and Non-Financial Reporting is appreciable. Stressing the need for Corporate Social Res-ponsibility (CSR), RBI pointed out that these initiatives by the banks are vital  for  sustainable  development. Banks have been directed to start; non-financial reporting will help to audit their initiatives towards the corporate social responsibility (CSR). Such a reporting will cover the work done by the banks towards the social, economic and environmental better-ment of society.

4. Universal Banking

Universal Banking refers to those services offered by banks beyond traditional banking service such as saving  accounts  and  loans  and includes  Pension  Funds  Manage-ment, undertaking equipment leas-ing,  hire  purchase  business  and factoring services, Primary Dealer-ship (PD) business, insurance busi-ness and mutual fund business.

The issue of universal banking came to limelight in 2000, when ICICI gave a presentation to RBI to discuss the time frame and possible options for transforming itself into an univer-sal bank.

Later  on  RBI  asked  financial institutions which are interested to convert them into a universal bank, to submit their plans for transition to a universal bank for consideration and further discussions.   FIs need to for-mulate a road map for the transition path and strategy for smooth con-version into an universal bank over a specified time frame. The plan should specifically provide for full com-pliance  with  prudential  norms  as applicable  to  banks  over  the  pro-posed period. Though the DFIs would continue to have a special role in the Indian  financial  System,  until  the debt market demonstrates substantial improvements in terms of liquidity and depth, any DFI, which wishes to do so, should have the option to transform into bank (which it can exercise),  provided  the  prudential norms as applicable to banks are fully satisfied. To this end, a DFI would need to prepare a transition path in order to fully comply with the regula-tory  requirement  of  a  bank.  The     DFI concerned may consult RBI for such transition arrangements. Reserve Bank will consider such requests on a case by case basis.

Thus, Indian financial structure is slowly evolving towards a conti-nuum  of  institutions  rather  than discrete specialization.

Conclusion

The  applicability  of  various existing laws and banking practices to e-banking is not tested and is still evolving, both in India and abroad. With rapid changes in technology and innovation in the field of e-banking, there is a need for constant review of different laws relating        to banking and commerce. A re-orientation of strategy is required in order to accommodate the changes and challenges of the present globa-lised scenario.

Technological      developments may become threat but still enable banks to access the global market through the electronic networks.  IT usage by banks would continue to exist  in  substantial  scales.  Indian Banking is trying to embrace latest technology upgrading its services. Clientele  are  reveling  sophisticated services  specific  needs,  preferences and conveniences by the banks.