India to rank among top 3 life insurance market by 2020

India's insurance sector, which is witnessing a rapid growth, is likely to touch about USD 400 billion in top income by 2020, making the country one of the top three life insurance and top 15 non–life insurance markets, according to a report.

The total penetration of insurance (premium as percentage of GDP) has increased to 5.2 per cent in 2011 from 2.3 per cent in 2001, said the report titled 'India Insurance – Turning 10, Going on 20'.

In addition, there has been a rush in insurance coverage due to availability of more products like better term plan, ULIPs, whole life, maximum NAV guarantee, auto assistance, disease management and wellness, it said.

The number of life policies had increased nearly 12- fold over the past decade and health insurance nearly 25–fold.
The report suggested that for sustainable productivity, the companies need to fix the agency operating model, build strategic, long-term non-agency partnership, incubate, experiment and develop alternative channels, develop a customer-centric operating model, target customer or product white spaces and go lean.

For non–life insurers, it defined a six-point agenda like creating optimal product portfolio, innovate to target product or customer white spaces, move towards risk based pricing, develop next generation claims management processes, go direct — build alternate channels for retail products and define and enhance agency sales force operating model.

RBI norms fail to check cases of fraud in banking sector

Despite the Reserve Bank of India (RBI) adopting new measures to check cases of fraud in the banking sector, the illegal activity has witnessed a spike during the first quarter of the current fiscal.

Banks and customers have together suffered losses to the tune of Rs 1246 crore due to cases of forgery during the first three months of the current financial year.

The RBI had formed a high level committee after the Rs 400 crore banking fraud in a Gurgaon branch of Citibank, but the effort of the central bank to tackle the illegal activity seems to have fallen flat.

The recent figures of the financial year 2011-12 reveal that as many as 229 cases of banking fraud have been registered with Citibank itself. The condition is similar in other banks as well. The leading private bank of the country, ICICI has reported 1961 fraudulence cases, blocking Rs 14 crores of its customers.

The data provided by the Banking Department of Ministry of Finance reveals that in the year 2008-09, the banking sector had to suffer a loss of Rs 1880.53 crores. During this time period, 23,579 cases of banking fraud came into light.

In the year 2010-11, 19834 cases were registered which led to a loss of Rs 3799.06 crores.

Thereafter, RBI issued stern directives to tackle the fraudulent practices prevalent in government, private and international banks.

According to the new rules, the branch manager of a particular branch will be held responsible for any case related to bank forgery.

The highly placed sources in RBI claimed that banks are not following the directives issued by it.

This can be gauged from the fact that despite RBI's directive of giving compulsory off for a stipulated time period to senior officials in banks, the order has not been implemented by majority of banks. 

Notably, the directive was issued with an aim to assess the work of the official by the person who would look after his work in his absence.

Moreover, many banks do not follow banking rules while reporting banking fraud cases.

India to be third largest domestic banking sector by 2050

According to a PriceWaterhouseCoopers report titled Banking In 2050, India could become the third largest banking sector by 2050 after China and US, leaving Japan, UK and Germany behind.
According to the report, “India has particularly strong long-term growth potential.”
Indian banking sector in general and the Reserve Bank of India were applauded post financial crisis for fiscal prudence. 

India’s largest private sector bank, ICICI Bank improved its cost to income ratio from 53 per cent in 2007 to 38 per cent in 2010, owing to shift in strategy from aggressive growth to cost rationalisation.
The report includes 22 countries segregating them into G7 (US, Japan, Germany, UK, France, Italy and Canada), E7 (China, India, Brazil, Russia, Mexico, Indonesia and Turkey), other developed economies (Australia, S Korea, and Spain), newly emerging economies (Argentina, Vietnam, Nigeria, Saudi Arabia and South Africa).
According to the report the financial crisis has brought about an acceleration in the shift of economic power from the developed to the emerging economies.
China could overtake US in 2023 and India could overtake Japan in 2033. India’s domestic banking assets are expected to grow to $38,484 in 2050 from $945.

Foreign Currency Convertible Bonds

Foreign Currency Convertible Bonds are debt instruments issued in a currency different than the issuer’s domestic currency with an option to convert them in common shares of the issuer company. It’s a quasi-debt instrument to raise foreign currency funds at attractive rate. FCCB acts like a bond by making regular coupon and principal payments; and also gives the bondholder an option to convert the bond into stock. In other words we can say that, Foreign currency convertible bond (FCCB) is a convertible bond issued by a country in a currency different than its own currency. This is the powerful instrument by which the country raises the money in the form of a foreign currency. The bond acts like both a debt and equity instrument. Like bonds it makes regular coupon and principal payments, but these bonds also give the bondholder the option to convert the bond into stock.

Guidelines for issuing FCCBs in India: 
(a) Any company that requires to raise the foreign funds by issuing FCCB, require prior permission of the Department of Economic Affairs, Ministry of Finance, Government of India.
(b) The company issuing the FCCB should have the consistent track record for a minimum period of three years.
(c) The Foreign Currency Convertible Bonds shall be denominated in any freely convertible foreign currency and the ordinary shares of an issuing company shall be denominated in Indian rupees.
(d) The issuing company should deliver the ordinary shares or bonds to a Domestic Custodian Bank as per regulation. The custodian bank on the other hand instructs the Overseas Depositary Bank to issue Global Depositary Receipt or Certificate to non-resident investors against the shares or bonds held by the Domestic Custodian Bank.

Advantages of FCCBs:
(a) It is more stable and predictable than domestic currency.
(b) It gives issuers the ability to access investment capital available in foreign markets.
(c) Companies can use the process to break into foreign markets.
(d) The bond acts like both a debt and equity instrument. Like bonds it makes regular coupon and principal payments, but these bonds also give the bondholder the option to convert the bond into stock.
(e) It is a low cost debt as the interest rates given to FCC Bonds are normally 30-50 percent lower than the market rate because of its equity component.
(f) Conversion of bonds into stocks takes place at a premium price to market price. Conversion price is fixed when the bond is issued. So, lower dilution of the company stocks.

Some of the perceived disadvantages of FCCBs:
(a) The exchange risk is more in FCCBs as interest on bond would be payable in foreign currency. Thus companies with low debt equity ratios, large forex earnings potential only opted for FCCBs.
(b) FCCBs mean creation of more debt and a forex outgo in terms of interest which is in foreign exchange.
(c) In case of convertible bond the interest rate is low (around 3-4 per cent) but there is exchange risk on interest as well as principal if the bonds are not converted in to equity.
(d) If the stock price plummets, investors will not go for conversion but redemption. So, companies have to refinance to fulfill the redemption promise which can hit earnings.
(e) It remains as debt in the balance sheet until conversion.

Green Bonds

Green Bonds are tax-exempt bonds which are issued by qualified organizations and/or municipalities for the development of brown-field sites. Brownfield sites are areas of land that are under-utilized, have abandoned buildings, or are under developed. They often contain low levels of industrial pollution. Green Bonds are short-hand for Qualified Green Building and Sustainable Design Project Bonds. These bonds are created to encourage sustainability and the development of brown field sites. The tax-exempt status makes purchasing a green bond a more attractive investment when compared to a comparable taxable bond. Green bonds could, in fact, be all of the following: green gilts, green retail bonds and green investment bank bonds. But, there are many more being proposed as well, including: green infrastructure bonds, multilateral development bank green bonds, green corporate bonds, green sectorial bonds, rainforest bonds and index-linked carbon bonds. Green bonds have an important role in helping to raise finance for different parts our low-carbon transition.

India Allows Renewable Energy Certificates (REC) Trading:
India has also allowed trading of REC; it is one of the key growth drivers for the Renewable energy industry. As of now, the REC is traded in 2 of the major power exchanges: - Indian Energy Exchange (IEX) and Power Exchange India Limited (PXIL).

What is REC:
World over, Renewable energy is more expensive than traditional forms of energy and the growth of renewable energy has been supported mostly by governments through various policy initiatives like Feedin-
Tariffs, subsidies, tax concessions, among others. In order to make the renewable energy sector more sustainable, many countries like Australia, Japan, etc. have put in place a mechanism to trade the renewable energy on platforms similar to stock exchanges. The trade of the energy will be purely based on demand and supply and the only role the government plays is to mandate utility companies to buy a certain part of their power from renewable energy sources. Under the REC Mechanism, when Renewable Energy is generated (solar, wind, biomass, etc.), the energy is divided into two components – the physical commodity electricity and a tradable certificate, which is the Renewable Energy Certificate (REC).

Corporate Repo Bonds: 
Banks, corporate and primary dealers pledge corporate bonds with each other to raise short term money. It is similar to banks pledging government securities with the RBI to raise short term money. Unlike pledging of government securities, here the borrower who pledges corporate bonds does not receive the entire value of the bond. Allowing repo in corporate bonds enables mutual funds, insurance firms and non-banking finance firms to borrow money by offering corporate bonds as collateral. In India the RBI guidelines on repo in corporate debt securities came to effect on March 1, 2010. But till date the corporate repo bonds are not much active in India. Only five deals have been reported so far. Companies that have issues corporate bonds in India are REC, PFC, HDFC, and NHB. The corporate repo bonds in India has not grown much because of lenders or issuers maintaining a cautious approach as well as due to lack of proper trade guarantee mechanism.

Understanding Repos:
Repos, or repurchase agreements, are contract for the sale and repurchase of securities and treasury bills at a future date. In this transaction, the seller repurchases the financial asset at the same price at which it was sold, and pays interest on it. Essentially, repo is a short-term, interest-bearing loan against the collateral of securities.

Banks in India

Nationalised banks dominate the banking system in India. The history of nationalised banks in India dates back to mid-20th century, when Imperial Bank of India was nationalised (under the SBI Act of 1955) and re-christened as State Bank of India (SBI) in July 1955. Then on 19th July 1960, its seven subsidiaries were also nationalised with deposits over 200 crores.

However, the major nationalisation of banks happened in 1969 by the then-Prime Minister Indira Gandhi. The major objective behind nationalisation was to spread banking infrastructure in rural areas and make cheap finance available to Indian farmers. The nationalised 14 major commercial banks were Allahabad Bank, Andhra Bank, Bank of Baroda, Bank of India, Bank of Maharashtra, Canara Bank, Central Bank of India, Corporation Bank, Dena Bank, Indian Bank, Indian Overseas Bank, Oriental Bank of Commerce (OBC), Punjab and Sind Bank, Punjab National Bank (PNB), Syndicate Bank, UCO Bank, Union Bank of India, United Bank of India (UBI), and Vijaya Bank.

In the year 1980, the second phase of nationalisation of Indian banks took place, in which 7 more banks were nationalised with deposits over 200 crores. With this, the Government of India held a control over 91% of the banking industry in India. After the nationalisation of banks there was a huge jump in the deposits and advances with the banks. At present, the State Bank of India is the largest commercial bank of India and is ranked one of the top five banks worldwide. It serves 90 million customers through a network of 9,000 branches.

Nationalised Banks (19)

• Allahabad Bank
• Andhra Bank
• Bank of Baroda
• Bank of India
• Bank of Maharashtra
• Canara Bank
• Central Bank of India
• Corporation Bank
• Dena Bank
• Indian Bank
• Indian Overseas Bank
• Oriental Bank of Commerce
• Punjab and Sind Bank
• Punjab National Bank
• Syndicate Bank
• UCO Bank
• Union Bank of India
• United Bank of India
• Vijaya Bank

State Bank of India and Associates(6)

• State Bank of India (SBI) 
• State Bank of Bikaner and Jaipur (SBBJ)
• State Bank of Hyderabad (SBH)
• State Bank of Mysore (SBM)
• State Bank of Patiala (SBP)
• State Bank of Travancore (SBT)

Private-Indian Banks (23)

Bank of Rajasthan Ltd.
Bharat Overseas Bank Ltd.
Catholic Syrian Bank Ltd.
Federal Bank Ltd
Dhanalakshmi Bank Ltd.
Jammu and Kashmir Bank Ltd.
Karnataka Bank Ltd.
Karur Vysya Bank Ltd.
City Union Bank Ltd.
Lakshmi Vilas Bank Ltd.
Nainital Bank Ltd.
Ratnakar Bank Ltd.
South Indian Bank Ltd.
Tamilnad Mercantile Bank Ltd.
ING Vysya Bank Ltd.
ICICI Bank Ltd. 
Axis Bank Ltd. 
IndusInd Bank Ltd.
Yes Bank Ltd.
SBI Commercial and International Bank Ltd.
HDFC Bank Ltd.
Development Credit Bank Ltd.
Kotak Mahindra Bank Ltd.

Private-Foreign Banks in India (29)

   The Royal Bank of Scotland  
    Abu Dhabi Commercial Bank
    American Express Bank Ltd.
    Bank of America, NA
    Bank of Bahrain & Kuwait BSC
    Mashreq Bank PSC
    Bank of Nova Scotia
    Bank of Tokyo Mitsubishi UFJ Ltd.  
    Citi Bank N.A.
   Deutsche Bank
    HSBC Ltd.
   Societe Generale
    Sonali Bank
    BNP Paribas Bank
    Barclays Bank p.l.c.
    DBS Bank Ltd.
    Bank International Indonesia
    Arab Bangladesh Bank Ltd.
    Standard Chartered Bank
    State Bank of Mauritius Ltd.
    Bank of Ceylon
    Cho Hung Bank
    China Trust Commercial Bank
    Krung Thai Bank plc.
    Antwerp Diamond Bank N.V.
    J P Morgan Chase Bank
    Mizuho Corporate Bank Ltd.
    Oman International Bank SAOG
    Credit Agricole Corporate and Investment Bank

History of Urban Cooperative Banks in India

The term Urban Co-operative Banks (UCBs), though not formally defined, refers to primary cooperative banks located in urban and semi-urban areas. These banks, till 1996, were allowed to lend money only for non-agricultural purposes. This distinction does not hold today. These banks were traditionally centred around communities, localities work place groups. They essentially lent to small borrowers and businesses. Today, their scope of operations has widened considerably.

The origins of the urban cooperative banking movement in India can be traced to the close of nineteenth century when, inspired by the success of the experiments related to the cooperative movement in Britain and the cooperative credit movement in Germany such societies were set up in India. Cooperative societies are based on the principles of cooperation, - mutual help, democratic decision making and open membership. Cooperatives represented a new and alternative approach to organisaton as against proprietary firms, partnership firms and joint stock companies which represent the dominant form of commercial organisation.

The Beginnings

The first known mutual aid society in India was probably the ‘Anyonya Sahakari Mandali’ organised in the erstwhile princely State of Baroda in 1889 under the guidance of Vithal Laxman also known as Bhausaheb Kavthekar. Urban co-operative credit societies, in their formative phase came to be organised on a community basis to meet the consumption oriented credit needs of their members. Salary earners’ societies inculcating habits of thrift and self help played a significant role in popularising the movement, especially amongst the middle class as well as organized labour. From its origins then to today, the thrust of UCBs, historically, has been to mobilise savings from the middle and low income urban groups and purvey credit to their members - many of which belonged to weaker sections.

The enactment of Cooperative Credit Societies Act, 1904, however, gave the real impetus to the movement. The first urban cooperative credit society was registered in Canjeevaram (Kanjivaram) in the erstwhile Madras province in October, 1904. Amongst the prominent credit societies were the Pioneer Urban in Bombay (November 11, 1905), the No.1 Military Accounts Mutual Help Co-operative Credit Society in Poona (January 9, 1906). Cosmos in Poona (January 18, 1906), Gokak Urban (February 15, 1906) and Belgaum Pioneer (February 23, 1906) in the Belgaum district, the Kanakavli-Math Co-operative Credit Society and the Varavade Weavers’ Urban Credit Society (March 13, 1906) in the South Ratnagiri (now Sindhudurg) district. The most prominent amongst the early credit societies was the Bombay Urban Co-operative Credit Society, sponsored by Vithaldas Thackersey and Lallubhai Samaldas established on January 23, 1906..

The Cooperative Credit Societies Act, 1904 was amended in 1912, with a view to broad basing it to enable organisation of non-credit societies. The Maclagan Committee of 1915 was appointed to review their performance and suggest measures for strengthening them. The committee observed that such institutions were eminently suited to cater to the needs of the lower and middle income strata of society and would inculcate the principles of banking amongst the middle classes. The committee also felt that the urban cooperative credit movement was more viable than agricultural credit societies. The recommendations of the Committee went a long way in establishing the urban cooperative credit movement in its own right.

In the present day context, it is of interest to recall that during the banking crisis of 1913-14, when no fewer than 57 joint stock banks collapsed, there was a there was a flight of deposits from joint stock banks to cooperative urban banks. Maclagan Committee chronicled this event thus:

“As a matter of fact, the crisis had a contrary effect, and in most provinces, there was a movement to withdraw deposits from non-cooperatives and place them in cooperative institutions, the distinction between two classes of security being well appreciated and a preference being given to the latter owing partly to the local character and publicity of cooperative institutions but mainly, we think, to the connection of Government with Cooperative movement”.

Under State Purview

The constitutional reforms which led to the passing of the Government of India Act in 1919 transferred the subject of “Cooperation” from Government of India to the Provincial Governments. The Government of Bombay passed the first State Cooperative Societies Act in 1925 “which not only gave the movement its size and shape but was a pace setter of cooperative activities and stressed the basic concept of thrift, self help and mutual aid.” Other States followed. This marked the beginning of the second phase in the history of Cooperative Credit Institutions.

There was the general realization that urban banks have an important role to play in economic construction. This was asserted by a host of committees. The Indian Central Banking Enquiry Committee (1931) felt that urban banks have a duty to help the small business and middle class people. The Mehta-Bhansali Committee (1939), recommended that those societies which had fulfilled the criteria of banking should be allowed to work as banks and recommended an Association for these banks. The Co-operative Planning Committee (1946) went on record to say that urban banks have been the best agencies for small people in whom Joint stock banks are not generally interested. The Rural Banking Enquiry Committee (1950), impressed by the low cost of establishment and operations recommended the establishment of such banks even in places smaller than taluka towns.

The first study of Urban Co-operative Banks was taken up by RBI in the year 1958-59. The Report published in 1961 acknowledged the widespread and financially sound framework of urban co-operative banks; emphasized the need to establish primary urban cooperative banks in new centers and suggested that State Governments lend active support to their development. In 1963, Varde Committee recommended that such banks should be organised at all Urban Centres with a population of 1 lakh or more and not by any single community or caste. The committee introduced the concept of minimum capital requirement and the criteria of population for defining the urban centre where UCBs were incorporated.

Duality of Control

However, concerns regarding the professionalism of urban cooperative banks gave rise to the view that they should be better regulated. Large cooperative banks with paid-up share capital and reserves of Rs.1 lakh were brought under the perview of the Banking Regulation Act 1949 with effect from 1st March, 1966 and within the ambit of the Reserve Bank’s supervision. This marked the beginning of an era of duality of control over these banks. Banking related functions (viz. licensing, area of operations, interest rates etc.) were to be governed by RBI and registration, management, audit and liquidation, etc. governed by State Governments as per the provisions of respective State Acts. In 1968, UCBS were extended the benefits of Deposit Insurance.

Towards the late 1960s there was much debate regarding the promotion of the small scale industries. UCBs came to be seen as important players in this context. The Working Group on Industrial Financing through Co-operative Banks, (1968 known as Damry Group) attempted to broaden the scope of activities of urban co-operative banks by recommending that these banks should finance the small and cottage industries. This was reiterated by the Banking Commisssion (1969).

The Madhavdas Committee (1979) evaluated the role played by urban co-operative banks in greater details and drew a roadmap for their future role recommending support from RBI and Government in the establishment of such banks in backward areas and prescribing viability standards.

The Hate Working Group (1981) desired better utilisation of banks' surplus funds and that the percentage of the Cash Reserve Ratio (CRR) & the Statutory Liquidity Ratio (SLR) of these banks should be brought at par with commercial banks, in a phased manner. While the Marathe Committee (1992) redefined the viability norms and ushered in the era of liberalization, the Madhava Rao Committee (1999) focused on consolidation, control of sickness, better professional standards in urban co-operative banks and sought to align the urban banking movement with commercial banks.

A feature of the urban banking movement has been its heterogeneous character and its uneven geographical spread with most banks concentrated in the states of Gujarat, Karnataka, Maharashtra, and Tamil Nadu. While most banks are unit banks without any branch network, some of the large banks have established their presence in many states when at their behest multi-state banking was allowed in 1985. Some of these banks are also Authorised Dealers in Foreign Exchange.

Recent Developments

Over the years, primary (urban) cooperative banks have registered a significant growth in number, size and volume of business handled. As on 31st March, 2003 there were 2,104 UCBs of which 56 were scheduled banks. About 79 percent of these are located in five states, - Andhra Pradesh, Gujarat, Karnataka, Maharashtra and Tamil Nadu. Recently the problems faced by a few large UCBs have highlighted some of the difficulties these banks face and policy endeavours are geared to consolidating and strengthening this sector and improving governance.

Scheduled Urban Co-Operative Banks(53) 

1.Ahmedabad Mercantile Co-Op Bank Ltd.
2 Kalupur Commercial Coop.Bank Ltd.
3 Madhavpura Mercantile Co-Op Bank Ltd.
4 Mehsana Urban Co-Op Bank Ltd.
5 Nutan Nagarik Sahakari Bank Ltd.,
6 Rajkot Nagrik Sahakari Bank Ltd.
7 Sardar Bhiladwala Pardi Peoples Coop Bank Ltd.
8 Surat Peoples Coop Bank Ltd.
9 Amanath Co-operative Bank Ltd.
10 Andhra Pradesh Mahesh Co-Op Urban Bank Ltd.
11 Charminar Co-operative Urban Bank Ltd.
12 Vasavi Coop Urban Bank LImited.
13 Indian Mercantile Co-operative Bank Ltd.,
14 Abhyudaya Co-operative Bank Ltd.,
15 Bassein Catholic Co-operative Bank Ltd.
16 Bharat Co-operative Bank (Mumbai) Ltd.
17 Bharati Sahakari Bank Limited.
18 Bombay Mercantile Co-operative Bank Limited
19 Citizen Credit Co-operative Bank Ltd.,
20 Cosmos Co-operative Urban Bank Ltd.
21 Dombivli Nagari Sahakari Bank Ltd.
22 Goa Urban Co-operative Bank Limited.
23 Gopinath Patil Parsik Janata Sahakari Bank Ltd.,
24 Greater Bombay Co-operative Bank Limited
25 Jalgaon Janata Sahakari Bank Ltd.
26 Janakalyan Sahakari Bank Ltd.,
27 Janalaxmi Co-operative Bank Ltd.,
28 Janata Sahakari Bank Ltd.,
29 Kallappanna Awade Ichalkaranji Janata Sahakari Bank Ltd.
30 Kalyan Janata Sahakari Bank Ltd.,
31 Karad Urban Co-operative Bank Ltd.
32 Mahanagar Co-operative Bank Ltd.,
33 Mapusa Urban Co-operative Bank of Goa Ltd.,
34 Nagar Urban Co-operative Bank Ltd.,
35 Nasik Merchant’s Co-operative Bank Ltd.
36 New India Co-operative Bank Ltd.,
37 NKGSB Co-operative Bank Ltd.,
38 Pravara Sahakari Bank Ltd.
39 Punjab & Maharashtra Co-operative Bank Ltd.
40 Rupee Co-operative Bank Ltd.
41 Sangli Urban Co-operative Bank Ltd.,
42 Saraswat Co-operative Bank Ltd.,
43 Shamrao Vithal Co-operative Bank Ltd.
44 Solapur Janata Sahakari Bank Ltd.
45 Thane Bharat Sahakari Bank Ltd.
46 Thane Janata Sahakari Bank Ltd.
47 The Kapol Co-operative Bank Ltd.,
48 Zoroastrian Co-operative Bank Ltd.,
49 Nagpur Nagrik Sahakari Bank Ltd.
50 Shikshak Sahakari Bank Ltd.,
51 The Akola Janata Commercial Co-operative Bank Ltd.,
52 The Akola Urban Co-operative Bank Ltd.,
53 The Khamgaon Urban Co-operative Bank Ltd.,

Note: There are 1592 Non-Scheduled Urban Co-Operative Banks in India as in end of March 2011.

State Co-operative Banks (31)

1.The Andaman and Nicobar State Co-operative Bank Ltd.
2. The Andhra Pradesh State Co-operative Bank Ltd.
3. The Arunachal Pradesh State co-operative Apex Bank Ltd.
4. The Assam Co-operative Apex Bank Ltd.
5. The Bihar State Co-operative Bank Ltd.
6. The Chandigarh State Co-operative Bank Ltd.
7. The Delhi State Co-operative Bank Ltd.
8. The Goa State Co-operative Bank Ltd.
9. The Gujarat State Co-operative Bank Ltd.
10. The Haryana State Co-opertive Apex Bank Ltd.
11. The Himachal Pradesh State Co-operative Bank Ltd.
12. The Jammu and Kashmir State Co-operative Bank Ltd.
13. The Karnataka State Co-operative Apex Bank Ltd.
14. The Kerala State Co-operative Bank Ltd.
15. The Madhya Pradesh Rajya Sahakari Bank Maryadit
16. The Maharashtra State Co-operative Bank Ltd.
17. The Manipur State Co-operative Bank Ltd.
18. The Meghalaya Co-operative Apex Bank Ltd.
19. The Mizoram Co-operative Apex Bank Ltd.
20. The Nagaland State Co-operative Bank Ltd.
21. The Orissa State Co-operative Bank Ltd.
22. The Pondichery State Co-opertive Bank Ltd.
23. The Punjab State Co-operative Bank Ltd.
24. The Rajasthan State Co-operative Bank Ltd.
25. The Sikkim State Co-operative Bank Ltd.
26. The Tamil Nadu State Apex Co-operative Bank Ltd.
27. The Tripura State Co-operative Bank Ltd.
28. The Uttar Pradesh Co-operative Bank Ltd.
29. The West Bengal State Co-operative Bank Ltd.
30. The Chhattisgarh RajyaSahakari Bank Maryadit
31. The Uttaranchal Rajya Sahakari Bank Ltd.

BANKING AWARENESS PRACTICE QUESTIONS

1. R.B.I. has introduced a new series of 'Star' bank note. And that will be issued in denominations of?
Ans: Rs. 10, Rs. 20, Rs. 50

2. From which organisation RBI has bought 200 tonnes of gold?
Ans: International Monitory Fund

3. In India which is the biggest commercial bank in public sector?
Ans: State bank of India

4. Differential rate of interest scheme was introduced in which year?
Ans: 1972

5. From which date banks were allowed free to fix base rates by RBI?
Ans: April 1, 2011

6. Foreign Direct Investment limit in private sector banks is?
Ans: 74 percent

7. Chairman of the parliamentary committee on agricultural finance and credit flow?
Ans: N. Janardhan Reddy

8. First chairman of the private sector banks association is?
Ans: P.N. Joshi

9. RBI introduced Banking Ombudsman scheme in which year?
Ans: 1995

10. The proportion of Non-Banking financial companies assets in the total assets of the financial system?
Ans: 11 percent

11. Under which Act Local area banks can be established by private promoters?
Ans: Company Act - 1956

12. The RBI (Amendment) Bill 2005 related to?
Ans: Provide operational flexibility to central bank to fix SLR and CRR for different banks

13. Who is the chairman of the working group constituted by RBI to provide suggestions on regulating loans to organised sector?
Ans: S.C. Gupta

14. Monetary policy is a policy adopted by?
Ans: Reserve Bank of India

15. At the liquidity trap which will be very low?
Ans: The rate of interest

16. Interest rate policy is a part of which policy?
Ans: Monetary policy

17. Which is not an instrument of monetary policy?
Ans: Import duty

18. Financial market department was set up in RBI in?
Ans: July, 2005

19. Dena bank was established in?
Ans: July 19, 1969

20. With which bank on September 4, 1993, new bank of India was merged?
Ans: Punjab National Bank

21. Number of deputy Governors in RBI?
Ans: Four

22. Ways and means Advances was in force since?
Ans: 1977, April 1

23. The main function of NABARD?
Ans: Provide refinancing facility

24. In which circumstance Dear money policy will be adopted by Reserve Bank of India?
Ans: Inflation

25. Through which instrument recently RBI has decided to buy upto 12000 crore of Govt. bonds?
Ans: Open market

26. Name of the organisation that was established by State Bank of India for buying and selling the Govt. securities?
Ans: SBI Gilts limited

27. Stagflation refers to?
Ans: Inflation with recession

28. Growth in M0 (Reserve money) during 2009-10 was?
Ans: 17 percent

29. Growth in M1 (Narrow money) during 2009-10 was?
Ans: 18.6 percent

30. Which committee recommended the measurements like M0, M1, M2 and M3?
Ans: Y.V. Reddy committee

31. Growth in M3 during 2009-10 was?
Ans: 16.8 percent.

32. Greshnam's law states?
Ans: Bad money drives good money out of circulation

33. Time deposits with banks are included in which measures of money stock?
Ans: M3 and M4

34. The RBI can increase the demand deposit component of the money supply by?
Ans: Lowering reserve requirements and increasing the volume of reserves

35. Financiary issue implies?
Ans: The issue of currency notes without metallic banking

36. Open market operations means sale or purchase in the open market of?
Ans: Government Securities

37. In an economy high-powered money is equal to?
Ans: Monetary liabilities of Central Bank and Government money

38. Saving deposits are not a part of money stock measure M1 because?
Ans: They are not used as medium of exchange

39. Which factor does not affect the balance sheet of Reserve Bank of India?
Ans: Loan taken by one commercial bank from the other

40. The most liquid of all assets is?
Ans: Money

41. If Reserve Bank of India raises the Cash Reserve Ratio then?
Ans: The value of money multiplier decreases

42. Other things being equal, an increase in the supply of money?
Ans: Lower nominal interest rate and raises aggregate demand

43. The function of World Bank (IBRD) is?
Ans: Promote growth of International trade and equilibrium

44. The supply of money consists of ?
Ans: Notes, Coins and Demand deposits

45. Banking companies (Acquisition and transfer of Undertaking) Act was passed in?
Ans: 1970

46. Fiat money is?
Ans: Which is accepted temporary in lieu of gold

47. A rise in the money supply will lead to?
Ans: A rise in the demand, A rise in price level and a fall in the interest rate

48. CAR refers to?
Ans: Capital Adequacy Ratio

49. International liquidity is regulated by?
Ans: International Monetary Fund

50. A 'Soft Currency' is a currency that?
Ans: Which can not be used for setting international transactions because it does not command a value in the international market

51. General currency area means those nations with which trade takes place in terms of?
Ans: Hard Currencies

52. Euro issue means?
Ans: Bonds, Shares etc issued by Indian firms in European Capital markets

53. Market stabilisation scheme is a scheme aimed at?
Ans: Stabilisation of money supply and price level in the country by absorbing excess liquidity

54. Head quarter of World Bank is located at?
Ans: Washington

55. New issues ratio is defined as?
Ans: Primary issues by non-financial sector or total physical asset formation

56. Central Banking Enquiry committee was set up in?
Ans: 1931

57. Social control on banks was imposed in?
Ans: 1967

58. Bank of Hindustan was established in?
Ans: 1770

59. Presidency bank Act came into existence in?
Ans: 1876

60. Punjab National Bank was setup in 1895 at?
Ans: Lahore

61. Bank of India was set up in?
Ans: 1906

62. US Federal Reserve was established in?
Ans: 1913

63. Agricultural Refinance Corporation of India was set up in?
Ans: 1963

64. District Credit Plans were initiated in?
Ans: 1973

65. The main function of the National Credit Council?
Ans: To assist the Reserve Bank of India and the Government to allocate credit according to plan priorities

66. Reason for announcement of Social control over banks?
Ans: To secure a better alignment of the banking system to the needs of economic policy

67. Differential Rate of interest scheme aims at?
Ans: To cater to the need of the weaker sections of the society and for their upliftment

68. The maximum rate for bank loans was prescribed in addition to the minimum lending rates in?
Ans: 1976

69. Health Code System introduced in 1985 aims at?
Ans: To Strong traning the banking system.

70. At present, How banks have to classify their advances?
Ans: Standard assets, sub-standard assets, doubtful assets and loss assets

71. To strength the capital base of banks which system was introduced for banks including foreign banks in India?
Ans: Capital to - risk - weighted assets ratio

72. A new foreign currency Non-Resident Deposits (Banks) scheme was introduced in?
Ans: 1993 April

73. Income recognition norms were tightened further from march 2004. As per those norms how an asset was classified as non-performing asset?
Ans: If the amount is remained unpaid for a period of 90 days instead of six months earlier

74. Securitisation and Reconstruction of financial Assets and Enforcement of security interest act was enacted in?
Ans: 2002

75. The maximum permissible bank finance was phased out from?
Ans: April 1997

76. The present Repo rate as on 8th of September 2011?
Ans: 8%

77. Allahabad bank was set up in?
Ans: 1865

78. Oriental Bank of commerce was nationalized on?
Ans: April 15, 1980

79. How many million notes are driven out of circulation every year in India is about?
Ans: 5 million

80. Modernised currency notes press are under establishment at?
Ans: mysore and salboni

81. Coins are minted at which places?
Ans: Mumbai, Kolkata, Hyderabad and Noida

82. RBI has decided to put into circulation coin of Rs. 5 and Rs. 2 with the theme of ?
Ans: XIX common wealth Games 2010 - Delhi

83. The small coins (Offences) Act was enacted in?
Ans: 1971

84. India millennium deposit scheme was launched by?
Ans: State Bank of India

85. Total number of bank branches of nationalized banks as on June 30, 2010?
Ans: 85,591

86. Current Authorisation scheme was introduced in?
Ans: 1965

87. A minimum lending rate was prescribed on all loans, except for the priority sector in?
Ans: 1973

88. Interest rate ceilings on NR & Deposits were linked to LIBOR/SWAP rates in?
Ans: July 2003

89. The evaluation of total operations and performance of the banks was under which system since July 1997?
Ans: CAMELS

90. The branch licensing policy for regional rural banks was rationalized in?
Ans: June 1995

91. The route of merger or amalgamation of RRB's was suggested by?
Ans: V.S.Vyas Committee

92. Expansionary monetary Policy coupled with a contraction of aggregate supply should?
Ans: Cause interest rates to fall in the short run

93. In an inflationary period, the appropriate policy for the Reserve Bank of India would be to?
Ans: Sell Government securities in the open market

94. Policy Initiatives of RBI during the contractionary policy and opted?
Ans: Increasing bank Rate, Increasing the CRR, Buying of Govt. Securities in the Open Market

95. If RBI wants to 'Sterilize' an inflow of foreign exchange, it should?
Ans: Sell Government securities in the Open market

96. An expansionary monetary and fiscal policy shifts?
Ans: Aggregate Demand to the right

97. A liquidity effect occurs under?
Ans: A money supply increase lowers the Rate of interest

98. A liquidity effect will normally result in an income effect because?
Ans: Lower interest rates will increase interest sensitive spending

SBI Clerk Recruitment Exam 2009 Solved Paper

1. Which of the following States will soon have its first Civil Airports ?
(A) Jammu & Kashmir
(B) Maharashtra
(C) Assam
(D) Meghalaya
(E) Sikkim
Ans : (E)

2. Who amongst the following made the 41st Test Century of his career recently ?
(A) Saurav Ganguly
(B) V. V. S. Laxman
(C) Rahul Dravid
(D) Sachin Tendulkar
(E) None of these
Ans : (D)

3. Which of the following was/were the objective(s) of the Mission Chandrayaan 1 ?
(a) Preparing dimensional atlas of the lunar surface.
(b) Chemical Mapping of the entire lunar surface.
(c) Locating minerals in the soil of the moon.
(A) Only (a)
(B) Only (b)
(C) Only (c)
(D) All (a), (b) & (c)
(E) None of these
Ans : (D)

4. Which of the following States introduced a high tech foodgrain rationing system to ensure timely supply of the foodgrains to people living below poverty line ?
(A) Maharashtra
(B) Tamil Nadu
(C) Delhi
(D) West Bengal
(E) Karnataka
Ans : (E)

5. Which of the following is NOT a part of India’s Money Market ?
(A) Bill Markets
(B) Call Money Market
(C) Banks
(D) Mutual Funds
(E) Indian Gold Council
Ans : (E)

6. Which of the following is the objective of the project ‘Bhoomi Keralam’ launched by the State Govt. ?
(A) To conduct a survey of the land
(B) To bring those people back who have left the State and settled in other States
(C) To provide financial security to farmers who are in distress
(D) To identify those tribals who need jobs or financial assistance
(E) None of these
Ans : (A)

7. Which of the following countries adopted its new constitution recently ?
(A) Russia
(B) Equadore
(C) South Korea
(D) North Korea
(E) None of these
Ans : (B)

8. Which of the following awards was given to Pt. Bhimsen Joshi recently (2008) ?
(A) Padma Bhushan
(B) Sangit Natak Academy Award
(C) Maharashtra Bhushan
(D) Karnataka Ratna
(E) Bharat Ratna
Ans : (E)

9. Which of the following States got its first Rail link recently ?
(A) Haryana
(B) Arunachal Pradesh
(C) Sikkim
(D) Manipur
(E) Jammu & Kashmir
Ans : (E)

10. Barack Hussain Obama belongs to which of the following political parties ?
(A) Republican
(B) Democratic
(C) Labour
(D) American National Congress
(E) None of these
Ans : (B)

11. Which of the following is/are NOT the features of India’s Foreign Trade policy (2004 to 2009)?
(a) To double India’s percentage share of global trade from present 0·7 per cent to 1·5 per cent by 2009.
(b) Simplifying the procedures and bringing down the cost.
(c) Make SAARC countries India’s most preferred foreign trade partners by 2009.
(A) Only (a)
(B) Only (b)
(C) Only (c)
(D) All (a), (b) & (c)
(E) Only (a) & (c)
Ans : (C)

12. Stephen Harper whose name was in news recently is the ……….
(A) President of Canada
(B) Prime Minister of Canada
(C) President of Italy
(D) Prime Minister of Switzerland
(E) Foreign Minister of U.S.A.
Ans : (B)

13. Which of the following is NOT a fertilizer product ?
(A) Urea
(B) Murate of Potash
(C) Di Amonium Phosphate
(D) Calcium Carbonate
(E) All are fertilizers
Ans : (E)

14. A Rs. 35,000 crore JSW Steel Plant project was inaugurated in West Bengal recently. The project is setup / developed in ……….
(A) Singur
(B) Nandigram
(C) Salboni
(D) Malda
(E) Joynagar
Ans : (C)

15. Which of the following State Govts. Has announced that it will provide a special package of incentives to Employment Intensive Industries ?
(A) Punjab
(B) Karnataka
(C) Tamil Nadu
(D) Uttar Pradesh
(E) Bihar
Ans : (C)

16. Which of the following nations has decided to increase its co-operation in the field of energy with India ?
(A) Russia
(B) China
(C) Bangladesh
(D) Nepal
(E) Japan
Ans : (A)

17. Which of the following services is NOT provided by the post offices in India ?
(A) Savings Bank Scheme
(B) Retailing of Mutual Funds
(C) Sale of stamp Papers (Judicial)
(D) Issuance of Demand Drafts
(E) Life Insurance cover
Ans : (D)

18. Mohammed Anni Nasheed is the newly elected President of ……….
(A) Fiji
(B) Maldives
(C) Iraq
(D) Iran
(E) None of these
Ans : (B)

19. Who amongst the following is the winner of the Nobel Prize for Literature 2008 ?
(A) Jean Marie Gustave Le Clezio
(B) Martti Ahtisaari
(C) Yoichiro Nambu
(D) Francoise Barre Sinoussi
(E) None of these
Ans : (A)

20. A national level commission of India has asked about twenty States to set up which of the following commissions in their States as early as possible ?
(A) Farmers Commission
(B) Women Commission
(C) Child Welfare Commission
(D) Law Commission
(E) None of these
Ans : (D)

21. Which of the following is/are the measure(s) taken by the Reserve Bank of India (RBI) to ease the liquidity crunch in the country ?
(a) Cut in Cash Reserve Ratio and Statutory Liquidity Ratio.
(b) Increase the flow of foreign direct investment.
(c) Supply of additional currency notes in the market.
(A) Only (a)
(B) Only (b)
(C) Only (c)
(D) All (a), (b) & (c)
(E) None of these
Ans : (A)

22. The third India Brazil and South Africa (IBSA) Summit took place in which of the following dies recently ?
(A) Brazilia
(B) New Delhi
(C) Suncity
(D) Salvador
(E) Durban
Ans : (B)

23. Which of the following States has dcided to set up Arsenic Removal Plants in all the districts of the State to enable itself to provide arsenic free drinking water to all the people by 2010-11 ?
(A) Karnataka
(B) Kerala
(C) West Bengal
(D) Orissa
(E) Maharashtra
Ans : (C)

24. Who amongst the following is the author of the book ‘The Exile’ ?
(A) B. G. Verghese
(B) Philip Roth
(C) Aravind Adiga
(D) Navtej Saran
(E) None of these
Ans : (D)

25. Which of the following programmes is being implemented in all the districts of the country ?
(A) Sarva Shiksha Abhiyan
(B) Navodaya Vidhyalay
(C) Ultra Mega Power Project
(D) Rajiv Gandhi Grameen Vidyuthikara Yojana
(E) None of these
Ans : (A)

26. The Govt. of India decided to provide a bonus price of Rs. 50 per quintal on which of the following products over and above its minimum support price of Rs. 850 per quintal ?
(A) Wheat
(B) Paddy
(C) Sugarcane
(D) Cotton
(E) None of these
Ans : (B)

27. Who amongst the following is the author of the book ‘The Namesake’ ?
(A) Vikram Seth
(B) V. S. Naipaul
(C) Arun Bhagat
(D) Anita Desai
(E) Jhumpa Lahiri
Ans : (E)

28. Besides USA India has signed Nuclear Agreement with which of the following countries and is named as ‘Co-operation Agreement for Peaceful uses of Nuclear Energy’ ?
(A) Italy
(B) Germany
(C) France
(D) Canada
(E) Australia
Ans : (C)

29. Tzipi Livini whose name was in news recently is from which of the following countries ?
(A) Singapore
(B) South Korea
(C) Austria
(D) Israel
(E) None of these
Ans : (D)

30. World Ozone day is observed on ……….
(A) 16th September
(B) 16th October
(C) 16th November
(D) 26th September
(E) 26th October
Ans : (A)

31. Which of the following is NOT a Govt. Sponsored organization ?
(A) Small Industries Development Bank of India
(B) NABARD
(C) National Housing Bank
(D) ICICI Bank
(E) All are Govt. sponsored
Ans : (D)

32. ‘Merdeka Cup’ is associated with the game of ……….
(A) Badminton
(B) Football
(C) Hockey
(D) Golf
(E) Tennis
Ans : (B)

33. India’s Space Rocket Launching Centre is in ……….
(A) Portblair
(B) Hassan
(C) Tirupati
(D) Kochi
(E) Sri Harikota
Ans : (E)

34. The National Games scheduled in 2011 will be organized in ……….
(A) Bengaluru
(B) Goa
(C) Kolkata
(D) Kochi
(E) Jaipur
Ans : (B)

35. Which of the followiing diseases is not covered under Integrated Disease Surveillance project ?
(A) Cholera
(B) Tuberculosis
(C) AIDS
(D) Polio
(E) Cancer
Ans : (E)

36. Which of the following is TRUE about ‘Antyodaya Anna Yojana’ ?
(a) Scheme is for Below Poverty Line families.
(b) People are provided cooked meals under the scheme.
(c) All beneficiaries of National Rural Employment Guarantee Act are covered in this scheme.
(A) Only (a)
(B) Only (b)
(C) Only (c)
(D) All (a), (b) & (c)
(E) None of these
Ans : (E)

37. Jelena Jankovic of Serbia won which of the following titles of tennis after defeating Svetlana Kuznetsova ?
(A) China Open
(B) Japan Open
(C) New Zealand Open
(D) Australian Open
(E) None of these
Ans : (A)

38. Who amongst the following is the Minister of Home Affairs in Union Cabinet of India at present ?
(A) Shivraj Patil
(B) Lalu Prasad Yadav
(C) P. Chidambaram
(D) Sharad Pawar
(E) None of these
Ans : (C)

39. Banks are required to pay how much percentage of their net bank credit to Priority Sector is advance ?
(A) 5%
(B) 7%
(C) 10%
(D) 15%
(E) None of these
Ans : (C)

40. Dronacharya Award is given for excellence in ……….
(A) Literacy Work
(B) Social Service
(C) Coaching in Sports
(D) Journalism
(E) None of these
Ans : (C)

Banking & Financial Acronyms

A
          AACS              As Applicable to Co-operative Societies
          ACF              Auto-Correlation Function
          AD              Authorized Dealer
          ADB              Asian Development Bank
          ADR              American Depository Receipt
          AEF              Aggregate External Finance
          AFS              Annual Financial Statement
          AFS              Available For Sale
          AGM              Annual General Meeting
          AIR              Assumed Interest Rate
          AIRCSC              All India Rural Credit Survey Committee
          ALM              Asset Liability Management
          AME              Annually Managed Expenditure
          AMR              Advanced Measurement Approach
          AO              Additive Outliers
          APR              Annual Percentage Rate
          AR              Auto Regression
          ARM              Adjustable Rate Mortgage
          ARS              Auction Rate Securities
          ARIMA              Auto-Regressive Integrated Moving Average
          ASSOCHAM              Associated Chambers of Commerce and Industry of India
          ATM              Asynchronous Transfer Mode
          ATM              Automated Teller Machine
  B
          BC              Business Correspondent
          BCA              Basic Credit Approval
          BCP              Business Continuity Plan
          BCBS              Basel Committee on Banking Supervision
          BF              Business Facilitator
          BG              Bank Guarantee
          BGB              Bank Guaranteed Bonds
          BHC              Bank Holding Company
          BIC              Bank Identifier Code
          BIS              Bank for International Settlements
          BLR              Base Lending Rate
          BOB              Bank of Baroda
          BOM              Bank of Maharashtra
          BOI              Bank of India
          BoP              Balance of Payments
          BPLR              Benchmark Prime Lending Rate
          BPM5              Balance of Payments Manual, 5th edition
          BPSD              Balance of Payments Division, DESACS, RBI
          BSA              Basic Savings Account
          BSE              Bombay Stock Exchange
          BSCS              Basel Committee on Banking Supervision
          BSR              Basic Statistical Returns
          BVI              Best Value Initiative
  C
          CA              Capital Allowance
          CAD              Capital Account Deficit
          CAG              Controller and Auditor General of India
          CAS              Capital Adequacy Standard
          CASA              Current Account and Savings Account
          CBS              Core Banking Solution
          CBS              Consolidated Banking Statistics
          CC              Cash Credit
          CDs              Certificates of Deposit
          CDSs              Credit Default Swaps
          CDL              Credit Discretionary Limit
          CDR              Credit Deposit Ratio
          CDBS              Committee of Direction on Banking Statistics
          CDS              Central Depository System
          CF              Company Finance
          CFRA              Combined Finance and Revenue Accounts
          CGRA              Currency and Gold Revaluation Account
          CIF              Customer Information File
          CII              Confederation of Indian Industries
          CIPFA              Chartered Institute Of Public Finance And Accountancy
          CMO              Collateralized Mortgage Obligation
          CO              Capital Outlay
          CP              Commercial Paper
          CPI              Consumer Price Index
          CPI – IW              Consumer Price Index for Industrial Workers
          CPSS              Committee on Payment and Settlement Systems
          CPR              Customer Profit Rate
          CRM              Credit Risk Management
          CRM              Customer Relationship Management
          CR              Capital Receipts
          CRR              Cash Reserve Ratio
          CRAR              Capital to Risk Weighted Asset Ratio
          CRISIL              Credit Rating and Information Services of India Limited
          CSCs              Common Service Centres
          CTCS              Cheque Truncation and Conversion System
          CTS              Cheque Truncation System
          CTR              Currency Transaction Report
  D
          DBEP              Domestic Bills Exchange Purchase
          DBOD              Department of Banking Operations and Development
          DBS              Department of Banking Supervision, RBI
          DCA              Dollar Cost Averaging
          DCB              Demand Collection and Balance
          DC              Documentary Credit
          DCCBs              District Central Co-operative Banks
          DCM              Department of Currency Management, RBI
          DD              Demand Draft
          DDS              Data Dissemination Standards
          DEIO              Department of External Investments and Operations
          DESACS              Department of Statistical Analysis & Computer Services, RBI
          DEFRA              Department Of Environment, Food And Rural Affairs
          DEL              Departmental Expenditure Limit
          DFI              Development Finance Institution
          DGBA              Department of Government and Bank Accounts, RBI
          DGCI&S              Directorate General of Commercial Intelligence and Statistics
          DI              Direct Investment
          DICGC              Deposit Insurance and Credit Guarantee Corporation of India
          DID              Discharge of Internal Debt
          DMA              Departmentalized Ministries Account
          DR              Disaster Recovery
          DRI              Differntial Rate of Interest Scheme
          DSBB              Dissemination Standards Bulletin Board
          DVP              Delivery versus Payment
E
          ECB              External Commercial Borrowing
          ECB              European Central Bank
          ECGC              Export Credit and Guarantee Corporation
          ECS              Electronic Clearing Scheme
          ECT              Electronic Cheque Terminal
          EDMU              External Debt Management Unit
          EDI              Electronic Data Interchange
          EEA              Exchange Equalization Account
          EEC              European Economic Community
          EEFC              Exchange Earners Foreign Currency
          EFR              Exchange Fluctuation Reserve
          EFT              Electronic Funds Transfer
          EFTPOS              Electronic Funds Transfer at Point of Sale
          EMEs              Emerging Market Economies
          EPF              Employees Provident Fund
          EPS              Earnings Per Share
          ETF              Exchange Traded Funds
          EU              European Union
          EUR              Euro
          EXIM              Bank Export Import Bank of India
F
          FASB              Financial Accounting Standards Board
          FAST              Fully Automated System for Tendering
          FATF              Financial Action Task Force
          FCA              Foreign Currency Assets
          FCAs              Foreign Currency Accounts
          FCCB              Foreign Currency Convertible Bond
          FCNR(B)              Foreign Currency Non-resident (Banks)
          FCNRA              Foreign Currency Non-resident Account
          FCNRD              Foreign Currency Non-Repatriable Deposit
          FCs              Financial Conglomerates
          FCY              Foreign Currency
          FDD              Foreign Currency Demand Drafts
          FDI              Foreign Direct Investment
          FDIC              Federal Deposit Insurance Corporation
          FEA              Facility Excess Application
          FEC              Forward Exchange Contract
          FEDAI              Foreign Exchange Dealers’ Association of India
          FEMA              Foreign Exchange Management Act
          FICCI              Federation of Indian Chambers of Commerce and Industry
          FIFO              First In, First Out
          FIIs              Foreign Institutional Investors
          FIMMDA              Fixed Income Money Market and Derivatives Association of India
          FISIM              Financial Intermediation Services Indirectly Measured
          FLAS              Foreign Liabilities and Assets Survey
          FOBC              Foreign Bills of Collection
          FOF              Flow Of Funds
          FOMC              Federal Open Market Committee
          FOREX              Foreign Exchange
          FPI              Foreign Portfolio Investment
          FRA              Forward Rate Agreement
          FRR              Facility Risk Rating
          FRB              Federal Reserve Board
          FRBM              Fiscal Responsibility and Budget Management Act, 2003
          FRN              Floating Rate Note
          FSB              Financial Stability Board
          FSRs              Financial Stability Reports
          FSS              Farmers’ Service Societies
          FT              Funds Transfer
          FTP              Funds Transfer Pricing
          FWG              First Working Group on Money supply
          FX              Foreign Exchange
  G
          GDP              Gross Domestic Product
          GDR              Global Depository Receipt
          GEP              General Expenditure Policy
          GES              General Expenditure Statistics
          GFD              Gross Fiscal Deficit
          GFS              Government Finance Statistics
          GHOS              Group of Central Bank Governors and Heads of Supervision
          GIA              General Investment Account
          GIC              General Insurance Corporation
          GLC              Government-Linked Company
          GLS              Generalized Least Squares
          GNIE              Government Not Included Elsewhere
          GoI              Government of India
          GP              General Provision
          GPD              Gross Primary Deficit
          G-Sec              Government Securities
          G-8              Group of Eight
          G-20              Group of Twenty
          GL              General Ledger
          GNP              Gross National Product
          GOB              General Obligation Bond
          GPC              Government Procurement Card
          GTA              Group Training Associates
          GUDD              Gold Up, Dollar Down
  H
          HBCI              Home Banking Computer Interface
          HDFC              Housing Development Finance Corporation
          HFT              Held For Trading
          HICP              Harmonised Index of Consumer Prices
          HKEx              Hong Kong Exchanges and Clearing Ltd.
          HO              Head Office
          HP              Hire Purchase
          HQ              Head Quarter
          HRA              Housing Revenue Account
          HUDCO              Housing & Urban Development Corporation
  I
          IBA              Indian Banks’ Association
          IBRD              International Bank for Reconstruction and Development
          IBS              International Banking Statistics
          IBT              Interbank Transfer
          ICAR              Indian Council of Agricultural Research
          IC              Inward Bill Collection
          ICCS              Inward Cheque Clearing System
          ICICI              Industrial Credit and Investment Corporation of India
          ICMR              Indian Council of Medical Research
          ICT              Information and Communication Technology
          IDB              India Development Bonds
          IDB              Islamic Development Bank
          IDBI              Industrial Development Bank of India
          IDD              Industrial Development Department
          IDRBT              Institute for Development and Research in Banking Technology
          IFAD              International Fund for Agricultural Development
          IFC              International Finance Corporation
          IFC(W)              International Finance Corporation (Washington)
          IFCI              Industrial Finance Corporation of India
          IFR              Investment Fluctuation Reserve Account
          IFRSs              International Financial Reporting Standards
          IFS              International Financial Statistics
          IIBI              Industrial Investment Bank of India
          IIN              Issuer Identification Number
          IIS              Interest in suspense
          ILC              Inward Letter of Credit
          IIP              Index of Industrial Production
          IIP/InIP              International Investment Position
          IMD              India Millennium Deposits
          IMF              International Monetary Fund
          IN              India
          INR              Indian Rupee
          INFINET              Indian Financial Network
          IOTT              Input-Output Transaction Table
          IP              Interest Payment
          IRBI              Industrial Reconstruction Bank of India
          IRDA              Insurance Regulatory and Development Authority
          IRFs              Interest Rate Futures
          IRR              Internal Rate of Return
          IRS              Interest Rate Swap
          ISDA              International Swaps and Derivative Association
          ISIC              International Standard Industrial Classification
          ISO              International Standards Organization
          ITRS              International Transaction Reporting System
          IVR              Interactive Voice Response
          IWGEDS              International Working Group on External Debt Statistics
J
          JSE              Johannesburg Securities Exchange
          JTWROS              Joint Tenants With Rights Of Survivorship
K
          KACR              The Chamber of Auditors of the Czech Republic
          KGB              Knowledge Generation Bureau
          KLIBOR              Kuala Lumpur Interbank Offered Rates
          KNN              Kurdish News Network      
          KRI              Key Risk Indicator             
          KUW              Kuwait Stock Exchange
          KVIC              Khadi & Village Industries Corporation
          KYC              Know-your-customer
  L
          LAF              Liquidity Adjustment Facility
          LAMPS              Large-sized Adivasi Multi-purpose Societies
          LAS              Loan & Advances by States
          LASFE              Local Authority Self Financed Expenditure
          LBD              Land Development Bank
          LBS              Locational Banking Statistics
          L/C              Letter of Credit
          LC              Leased Contract
          LCP              Local Cheque Purchase
          LCS              Loan Collection System
          LGA              Local Government Association
          LGD              Loss Given Default
          LGF              Local Government Finance
          LO              Letter of Offer
          LOI              Letter Of Intent
          LPSA              Local Public Service Agreement
          LS              Level Shift
          LSE              London Stock Exchange
          LSP              Local Strategic Partnership
          LT              Long Term
          LTO              Long Term Operation
          LTV              Loan to Value
          LOFSA              Labuan Offshore Financial Services Authority
          LOS              Loan Origination System
  M
          M1              Narrow Money
          M3              Broad Money
          MA              Moving Average
          MAR              Market Access Reporting
          MAT              Minimum Alternate Tax
          MBOPD              Thousand Barrels of Oil Per Day             
          MCA              Ministry of Company Affairs
          MCS              Micro-Credit Scheme
          MCTF              Multi Currency Trade Financing
          MDR              Merchant Discount Rate
          MIA              Months in Arrears
          MFI              Money Flow Index
          MFIs              Micro-finance Institutions
          MIS              Management Information System
          MIP              Management Incentive Plan      
          MICEX              Moscow Interbank Currency Exchange
          MKD              Marketing Knowledge
          MKTD              Marketed By
          MKTG              Marketing
          MM              Money Market
          MoA              Memorandum of Association
          MoF              Ministry of Finance
          MoM              Month-over-Month
          MoU              Memorandum of Understanding
          MODVAT              Moderate Value Added Tax
          MRM              Monitoring and Review Mechanism
          MSE              Muscat Stock Exchange
          MSEs              Micro and Small Enterprises
          MSI              Multiple Streams Of Income
          MSMEs              Micro, Small and Medium Enterprises
          MSS              Market Stabilisation Scheme
          MT              Mail Transfer
          MTN              Medium Term Notes
          MTR              Monthly Treasurer Report
  N
          NABARD              National Bank for Agriculture and Rural Development
          NAC(LTO)              National Agricultural Credit (LongTerm Operatiion)
          NAIO              Non Administratively Independent Office
          NAO              National Audit Office
          NAS              National Account Statistics
          NASDAQ              National Association Of Securities Dealers Automated
         Quotation
          NASSCOM              National Association of Software and Services Companies
          NAV              Net Asset Value
          NBC              Non-Banking Companies
          NBFCs              Non-Banking Financial Companies
          NCDs              Non-Convertible Debentures
          NDTL              Net Demand and Time Liabilities
          NEC              Not Elsewhere Classified
          NEER              Nominal Effective Exchange Rate
          NEFT              National Electronic Funds Transfer
          NFA              Non-Foreign Exchange Assets
          NFD              Net Fiscal Deficit
          NGO              Non-Governmental Organization
          NHB              National Housing Bank
          NIC              National Industrial Classification
          NID              Negotiable Instruments of Deposit
          NIF              Note Issuance Facility
          NII              Net Interest Income
          NNML              Net Non-Monetary Liabilities
          NOP              Net Open Position
          NOD              Notice of Discipline      
          NOO              Note On Original      
          NOSO              No Obligation Special Offer      
          NPA              Non-Performing Assets
          NPCI              National Payments Corporation of India
          NPD              Net Primary Deficit
          NPRB              Net Primary Revenue Balance
          NPV              Net Present Value
          NR(E)RA              Non-Resident (External) Rupee Account
          NR(NR)              Non-Resident (Non-Repatriable) Rupee Account
          NRE              Non-Resident External
          NRG              Non-Resident Government
          NSC              National Savings Certificate      
          NSSF              National Small Savings Fund
          NTU              Not Taken Up      
          NUSS              Nuclear Safety Standards  
O
          OBS              Off Balance Sheet
          OC              Outsources Company     
          OCPA              Office Of The Commissioner For Public Appointments
          OCP              Outstation Cheque Purchase
          OCR              Official Cash Rate
          OD              Over Draft
          ODA              Official Development Assistance
          ODIN              Open Dealer Integrated (Trading) Network
          OECD              Organisation For Economic Co-operation And Development
          OECO              Organisaton for Economic Co-operation
          OER              Operating Expense Ratio
          OFIs              Other Financial Institutions
          OFX              Open Financial Exchange
          O&G              Ownership and Governance
          OL              Order Line
          OLEM              Operations Labor & Equipment Managment
          OLTAS              OnLine Tax Accounting System
          OMO              Open Market Operations
          OPM              Other People’s Money
          OSCB              Other Indian Scheduled Commercial Bank
          OTC              Over The Counter
          OTCEI              Over-The-Counter Exchange Of India
          OTE              Opportunity To Earn
          OTP              Offer To Purchase
          OTS              Office of Thrift Supervision