1

1.In context with the Real Time Gross Settlement which is maintained by the RBI in India, what is the number of characters in the alphanumeric codes provided to each bank connected with Core Banking System?(A)8(B)9(C)10(D)11(E)12

2.What is the minimum maturity on Certificates of Deposit in India?(A)7 days(B)30 days(C)60 days(D)90 days(E)120 days

(7 days, CDs issued by banks should not have the maturity less than seven days and not more than one year. Financial Institutions are allowed to issue CDs for a period between 1 year and up to 3 years.)

3.Consider the following: 1. RTGS 2. NEFT 3. RITS 4. SIC 5. CHAPS Which among the above are applicable to India?(A)1 only(B)1 & 2 only(C)1, 2 & 3(D)1,2,3,4(E)all of them(1 & 2 only. National Electronic Fund Transfer (NEFT) is an online system for transferring funds of Indian financial institution. RITS is a payment system in Australia, SIC is Swiss Interbank Clearing in Switzerland, <br />CHAPS is Clearing House Automated Payment System of UK)

4.Normally which of the following date of a month is observed as Customer day in Indian Banks on which the branch heads / officials are available to hear and redress customer grievances?(A)7th(B)15th(C)Last Saturday of each month(D)Second Saturday of each month(E)last day of each month

5.In which year the Consumer protection act was implemented in India?(A) April 15, 1987(B)1989(C)1992(D)1993(E)1996

6.Which of the following committee is known to lay the foundation for induction of Computer Technology in the Indian Banking Sector ?(A)Abid Hussein Committee(B)Dr. Rangarajan Committee(C)Narsimham Committee(D)Tarapore Committee(E)Vijay kelker Committee

7.Which among the following works as central processing agent in RTGS?(A)Reserve Bank of India(B)Institute for Development & Research in Banking Technology [IDRBT](C)Indian Financial Network(D) Indian Banks Association(E)None of them

8.Which of the following was set up by State bank of India on recommendation of Iyer Committee in 1991?(A)RTGS(B)NEFT(C)BANKNET(D)RBINET(E)I-NET

9.The unemployment of a person when he/ she is in midst of transiting between jobs, searching for new job comes under the which of the following category?(A)Cyclical(B)Voluntary(C)Frictional(D)Seasonal(E)Hidden

10.Which of the following Presidents of United States is known for creating "President's Organization for Unemployment Relief" in the decade of thirties for victims of Great Depression?

(A)Franklin D. Roosevelt(B)Herbert Hoover(C)Calvin Coolidge(D)Harry S. Truman(E)None of them

11.In context with the macroeconomics , Philips Curve is a relationship between the rates of ___?(A)Unemployment & Exim trade(B)Unemployment and Inflation(C)Unemployment and Demand(D)Unemployment and Poverty(E)None of them

12.Which among the following is an example of Cross selling?(A)A sales person suggests a product or service to a person who lives in neighborhood of one of the clients(B)A sales person suggests a premium brand of whisky, when the customer is buying a local made liquor(C)A person suggests a new product or service to an old client of the company(D)A person sales an extensive annual maintenance contract when the customer buys a product.(E)All of above

13.In context with the Basel II guidelines , which among the following is true regarding the guidelines of the Reserve bank of India issued in 2007 for implementation for foreign banks operating in India and Indian banks having presence outside India?(A)Standardized approach for credit risk and basic indicator approach for operational risk(B)Standardized approach for operational risk and basic indicator approach for credit risk(C)Standardized approach for both credit risk & operational risk(D)Basic indicator approach for both credit risk & operational risk(E)None of them

14.In context with the banking business, which among the following is a correct definition of liquidity risk?(A)Risk arising from funding of long term assets by short term liabilities or funding of short term assets by long term liabilities(B)Risk arising from adverse movement of interest rates during a liquidity

crunch in the markets(C)Risk arising from the adverse movement of the value of the assets /investments etc.(D)Risk arising from a party becoming defaulter(E)None of them

15.Which among the following is not a pillar of BASEL II CRAR?(A)Minimum Capital Requirement(B)Risk Management(C)Supervisory review of capital adequacy(D)Market discipline(E)All of above are pillars of BASEL II CRAR

16.The stock market deals in _______?(A)Only short term securities(B)Only Long term securities(C)Both short term and long term securities(D)Only secured bonds(E)None of them

17.Round Tripping is normally used in context with which of the following _____?(A)Capital Markets(B)Foreign Direct Investments(C)Cash Deposits(D)Foreign Remittances(E)Foreign currency swaps

18.In context with the markets, what is dematerialization of securities?(A)Shortening the time of debt repayment on securities(B)Electric holding of the shares replacing the paper securities(C)The price of a shares falling below certain point in the share market(D)The buyback of shares by a company(E)Dividend distribution

19.Which among the following is an example of Arbitrage?(A)A firm of brokers purchases certain shares at BSE and sells the same number of shares at NSE to take advantage of minor difference in rates(B)A firm of currency brokers purchases US dollars and sells the British Pounds with the same value(C)A firm buys certain number shares of a company and sells similar number of

shares of another company which is doing better in the market(D)A firm buys certain currency today and undergoes a contract to sell the same currency after two months(E)None of them

20.Who among the following are the beneficiaries of Ways and Means Advances (WMA) facility of Reserve Bank of India?(A)Commercial Banks(B)Regional Rural banks(C)State Governments(D)Authorized Dealers of Foreign Exchanges(E)All of aboveQuiz on General Knowledge 64 - 2010

1.      Who is the new Chief Minister of Meghalaya?

a)D D Lapang   b)Khanduri     c)Mukul Sangma    d)Donkupar Roy   e)none

2.      Who has been voted as India Inc’s Most Powerful CEO for 2009 by Economic Times

Corporate Dossier magazine?

a)Sunil Mittal     b)Anand Mahindra     c)Aditya Puri    d)Mukhesh Ambhani    e)Ratan

Tata

3.      To which of the following neighbouring country India has decided to supply 50,000

tonnes of wheat, 25,000 tonnes of rice and 10,000 tonnes of yellow peas dal?

a)Pakistan    b)Afghanistan     c)Bangladesh     d)Nepal    e)none

4.      India's 18th Nuclear Power Plant Begins Commercial Operations in which of the

following states?

a)Andhra Pradesh      b)Karnataka     c)Rajasthan    d)Gujarat    e)Tamilnadu

5.      Which Country hosted the 16th SAARC summit?

a)Nepal    b)Srilanka     c)Pakistan    d)Bhutan     e)none

6.      India's first International Tourism police station has been opened in which state?

a)Kerala     b)Delhi     c)Maharashtra    d)Jammu and Kashmir   e)none

7.      Which Company has topped the list of Fortune’s most admired company in the world?

a)Google     b)Microsoft     c)Yahoo    d)P & G    e)Apple

8.      What is the full form of FCNR, term used in banking?

a)Foreign Capital for Nations and Region

b)Finance Capital Non Resident

c)Foreign Currency Non Resident

d)Finance Currency Non Resident

e)none

9.      Recently Rbi increased Policy rates and Reserve ratios. Why did Rbi increased these

measures?

a)To Improve the Indian Economy

b)To control the Inflation

c)To control the deflation

d)Rbi wants more money to give to government 

e)because banks are gaining huge profits

10. Who has been named ‘Wisden Cricketer of the Year’ for the second time in a row?

a)Ricky Pointing   b)T Dilshan     c)Andrew Strauss    d)Sachin Tendulkar   e)V Sehwag

11. Which of the following received the ‘Boeing's Supplier of the Year Award for the year

2009’?

a)HAL    b)DRDO     c)ISRO     d)BEL    e)none

12. Chandrashekhar Rele has recently passed away. He was famous _____?

a)Carnatic Musician    b)Dancer      c)Vocalist     d)Hindustan Classical Musician   e)none

13. Who has been awarded the Tejaswini award for young women achievers?

a)Vidya balan    b)Priya Dutt    c)Mary Kom   d)All the bove    e)none

14. Bahraich district has become the first tribal village in the state to be converted into a

revenue village under the Forest Rights Act. Bahraich is in which state?

a)Sikkim    b)Rajasthan   c)Maharashtra    d)Chhattisgarh    e)Uttar Pradesh

15. Who is the author of the book ‘Wide Angle’?

a)Tiger Woods     b)Anil Kumble     c)Adam Gilchrist    d)Rahul Dravid    e)none

16. Which is the first bank in India to get the Chinese approval to carry out business in the

local currency – yuan?

a)ICICI     b)SBI     c)Punjab National Bank    d)Axis Bank   e)none

17. Which Organization has sanctioned USD 4.9-billion (over Rs 22,000 crore) loans to India

in 2009-10 for 14 schemes and projects undertaken by the government?

a)ADB     b)UN     c)World Bank    d)IMF    e)none

18. Which State has decided to pioneer an e-waste policy to encourage green information

technologies?

a)Tamilnadu    b)Karnataka    c)Kerala     d)Gujarat   e)none

19. Which Country will host the 11th International Indian Film Academy Awards (IIFA)?

a)India      b)Srilanka      c)UK    d)Maldives   e)none

20. Recently SEBI banned the 14 life insurance companies in India from circulating ULIP’s.

what is the full form of ULIP?

a) Unit Linked Investment Plan

b) Unit Linked Insurance Policy

c) Unit Linked Insurance Plan

d)Unit Linked Investment Policy

e)none

Posted by Varun Reddy at 19:03 13 comments Links to this post Labels: Andhra Pradesh, Asia, Bhutan, Gujarat, India, Jammu Kashmir, Pakistan, South Asian Association for Regional Cooperation Reactions: 

Tuesday, April 27, 2010

Current Affairs March-III 2010

        India already has 27 of its famous sites, including Taj Mahal and Qutub Minar, inscribed

as World Heritage Sites. The Jantar Mantar complexes in Jaipur and Santiniketan in West

Bengal have been recommended by India to be included in the World Heritage List.(Go

for Part II & I).

        The State Bank of India has received the permission from the Chinese government to

lend in the local currency—Yuan. SBI is the first Indian bank to receive this permission

from the Chinese authorities, who are traditionally conservative in allowing foreign banks

to do business in the local currency.

        Bhutan government will produce 10,000 MW of hydro-power for India by 2020 under a

joint venture. India will provide Rs 35,000 crore for the venture.

        India has the lowest percentage of female population in the Asia-Pacific region ranking

lower than Pakistan, Maldives and Bangladesh despite having the highest sex ratio at

birth compared to these countries, a new study shows. According to the report 'Power,

Voice and Rights' by the UNDP, while India had 48.2 per cent female population at birth,

Pakistan had 48.5, Bangladesh had 48.8 and Japan 51.1 per cent.

        Three Indians--Congress President Sonia Gandhi, ICICI Bank Head Chanda Kochhar and

PepsiCo Chief Executive Indra Nooyi--have been named among Asia's eight top power

women by American broadcaster CNN. The list is topped by China-based Nine Dragons

Paper Holdings' Zhang Yin, followed by Nooyi at the second spot. Gandhi is ranked

third, while Kochhar is at the fifth slot.

        Shoma Chaudhury of Tehelka and Monalisa Changkija of Nagaland Page have been

selected for the prestigious Chameli Devi Jain Award for Outstanding Woman

Mediapersons.

        AICC general secretary Mohsina Kidwai was elected Chairperson of the Haj Committee

of India. Kidwai would be the first woman Chairperson of the minority body.

        Greece has been added to the US Visa Waiver Programme, allowing its citizens to travel

to the United States for 90 days at a time without a visa.

        Indian-American computer scientist Subhash Khot, well known for his 'Unique Games

Conjecture' has been selected for a prestigious USD 500,000 national science award.

        Jharkhand started a new Atal Jyoti Electrification Scheme in the 2010/11 budget to

provide electricity for villages.

        Actress Preity Zinta was appointed UNAIDS Goodwill Ambassador and plans to

combine Cricket and Bollywood to raise awareness about the deadly disease.

        Mumbai has been named among the world's top ten billionaire cities as it is home to as

many as 20 richest Indians, according to a list compiled by the Forbes magazine.

        India opened its 23rd Cultural Relations centre in Dhaka naming it after former Prime

Minister Indira Gandhi and acknowledging her contribution to Bangladesh's 1971

Liberation War.

        In an indication of sustained economic growth, the per capita income in the national

capital(Delhi)  has increased to Rs 78,690 in the financial year 2007-08 as against the

national figure of Rs 33,283. Delhi per capita income, which indicates an average earning

of a person, is the third highest in the country with Chandigarh having per capita income

of Rs 1,10676 topping the list and closely followed by Goa at Rs 1,05,582.

        Pravinchandra V Gandhi, former Chairman of Dena Bank and a leading figure in the

print media industry, passed away.

        Batting maestro Sachin Tendulkar has been named as the most influential person in

Indian sports in the annual Sports Illustrated Power list. The top 50 rates Tendulkar as the

number one influencer in India, followed closely by IPL Chairman Lalit Modi at second

spot and liquor baron Dr Vijay Mallya in third. Union Agriculture Minister and President

elect, ICC Sharad Pawar, Indian cricket team skipper Mahendra Singh Dhoni and BCCI

president Shashank Manohar are fourth, fifth and sixth on the list respectively.

        The Bombay Stock Exchange has emerged as one of the top ten bourses globally in terms

of valuation of shares traded, with its market valuation nearly doubling to Rs 60,79,892

crore ($1.31 trillion) last year. Among the top ten bourses with the largest domestic

equity market capitalizations at the end of 2009, the BSE is placed at the tenth spot,

according to the WFE. The league is topped by the NYSE Euronext of the US with a

market capitalisation of $11.84 trillion and the Tokyo Stock Exchange Group ($ 3.31

trillion) at the second place.

        Delhi gets India’s first remote controlled street lights that can be switched on and off

using an internet-enabled main server located in the heart of the city.

        Pakistan cricket was thrown into turmoil with the country's Board putting an end to the

international careers of former captains Mohd Yousuf and Younis Khan besides imposing

a one-year ban on Shoaib Malik in the wake of the team's disastrous tour of Australia. As

recommended by the committee headed by Wasim Bari, former captain Shoaib Malik and

Rana Naved-ul-Hasan were handed one-year bans. The Akmal brothers Kamran and

Umar and Afridi have been put on probation for six months besides being fined between

Rs 2-3 million for indiscipline on the tour.

Posted by Varun Reddy at 20:21 2 comments Links to this post Labels: Bangladesh, ICICI Bank, India, State Bank of India, Taj Mahal, United States, West Bengal, World Heritage Site Reactions: 

Monday, April 26, 2010

Banking Interview Question and Answers 2010

What is Retail Banking?

Banking services for individual customers. Retail banking refers to banking in which

banking institutions execute transactions directly with consumers. Services offered

include: savings and checking accounts, mortgages, personal loans, debit cards, credit

cards, and so forth.

What is Private Banking?

Banking services offered to high net-worth individuals. Private banking institution assists

the high net-worth individual in investing his/her money in exchange for commissions

and fees. The term "private" refers to the customer service being rendered on a more

personal basis.

What is an Investment Bank and Commercial Bank and what is the difference

between them?

Investment Bank: A financial institution that deals primarily with raising capital,

corporate mergers and acquisitions, and securities trades. It aids companies in acquiring

funds.

Commercial Bank: An institution which accepts deposits, makes business loans, and

offers related services. Commercial banks also allow for a variety of deposit accounts,

such as checking, savings, and time deposit. These institutions are run to make a profit

and owned by a group of individuals.

A Commercial bank is commonly referred to as simply a bank. The term ‘Commercial’ is

used to distinguish it from an investment bank. The term ‘Commercial’ is used to refer to

any banking organization or division that deals with the deposits and loans of business

organizations.

Traditionally, banks either engaged in commercial banking or investment banking. In

commercial banking, the institution collects deposits from clients and gives direct loans

to businesses and individuals.

Through investment banking, an institution generates funds in two different ways. They

may draw on public funds through the capital market by selling stock in their company,

and they may also seek out venture capital or private equity in exchange for a stake in

their company.

Examples of Investment Banks: Bank of America, J P Morgan Chase, Citigroup.

What is Private Equity?

Private equity is money invested in companies that are not publicly traded on a stock

exchange. Instead, they normally seek equity stakes (that is partial ownership) in private

companies. Venture capital is a specialized subcategory of private equity. Both are high

risk, high reward investment approaches.

What is Globalization?

Globalization is a process of interaction and integration among the people, companies,

and governments of different nations.

Advantages of Globalization:

i)It can reduce Poverty,

ii) It promotes world peace.

iii)It is allowing access to technology in developing countries and etc.

What is Privatization?

Privatization can also be called denationalization or disinvestment. Privatization refers to

of ownership from the government(public sector) to the private business sector either

partially or totally.

What is Liberalization?

The process of reducing or removing restrictions on international trade. This may include

the reduction or removal of tariffs, abolition or enlargement of import quotas, abolition of

multiple exchange rates, and removal of requirements for administrative permits for

imports or allocations.

What is Marketization?

It is an economic system based on the principles of the market, including supply,

demand, choice and competition.

What is Micro Finance?

Microfinance offers poor people access to basic financial services such as loans, savings,

money transfer services and micro insurance. People living in poverty, like everyone else,

need a diverse range of financial services to run their businesses, build assets, smooth

consumption, and manage risks.

What is Free Market economy?

A market economy based on supply and demand with little or no government control is

said to be free market economy.

What is Stock Market/ Share market?

A market where securities are bought and sold. Its basic function is to enable public

companies, governments and local authorities to raise capital by selling securities to

investors.

What is Equity?

Ownership interest in a corporation in the form of stock.

What is Stock?

The capital raised by a corporation through the issue of shares entitling holders to an

ownership interest (equity).

What is National Electronic Fund Transfer system (NEFT)? What is the difference

between RTGS and NEFT?

National Electronic Fund Transfer (NEFT) is an online system for transferring funds of

Indian financial institution (especially banks). This facility is used mainly to transfer

funds below Rs. 1,00,000. The Reserve Bank of India has instructed banks that they

should not use RTGS for amounts below Rs 1 lakh.

The key difference between RTGS and NEFT is that while RTGS is on gross settlement

basis, NEFT is on net settlement basis. The minimum transaction value for RTGS is

Rs. 1,00,000, whereas there is no minimum value for NEFT.

What is DICGC?

Deposit Insurance is nothing but the protection of deposit amount invested in banks under

the Act of Deposit Insurance and Credit Guarantee Corporation (DICGC). If a bank fails

then a limited amount of protection is provided by the government to depositors. All

commercial banks, cooperative banks are covered under the Deposit Insurance in India.

What is IRDA?

To protect the interests of the policyholders, to regulate, promote and ensure orderly

growth of the insurance industry and for matters connected therewith or incidental

thereto. Headquartered in Hyderabad. Hari Narayan is the chairman of IRDA.

What is Balance of Payments?

A balance of payments is a strategy used to analyze the relationship between money that

is flowing into a country and money that is going out of that same country. The BOP is

divided into three main categories: the current account, the capital account and the

financial account.

What is Balance of Trade?

The difference between a country's imports and its exports.

What is Global Warming?

Global warming refers to an average increase in the Earth's temperature, which in turn

causes changes in climate. It happens when greenhouse gases (carbon dioxide, water

vapor, nitrous oxide, sulphur hexafluoride and methane) trap heat and light from the sun

in the earth’s atmosphere, which increases the temperature. 

What is Kyoto Protocol?

It is an international agreement aimed at controlling the greenhouse emissions, mainly

Carbon Dioxide.

What is Savings Account?

A savings account typically refers to an account in which one places money to earn a

small amount of interest.

What is Debit Card?

A debit card is a plastic card issued by banks to customers. The card allows instant

purchase, removing the correct balance from the user’s attached bank account.

What is Credit Card?

A card issued by a financial company giving the holder an option to borrow funds,

usually at point of sale.(for more go on to Banking terms page).

Posted by Varun Reddy at 10:30 5 comments Links to this post Labels: Business, Commercial bank, Credit card, Deposit account, Financial Services, Investment Bank, JPMorgan Chase, Transactional account Reactions: 

Saturday, April 24, 2010

Essay Writing in Bank Exams - 2010

Q) Write an essay on ‘Below Poverty Line in India’?

The Planning Commission of India recently adopted the Tendulkar Committee's

methodology for poverty estimate that includes spends on education and health besides

food, taking the number of the poor to a whopping 37.2 per cent from 27.5 per cent

estimated earlier in 2004. This means that India now has 100 million more people living

below the poverty line than in 2004.

National estimates of the percentage of the population falling below the poverty line are

based on surveys of sub-groups, with the results weighted by the number of people in

each group.

Definitions of poverty vary considerably among nations. For example, rich nations

generally employ more generous standards of poverty than poor nations. What does

poverty in India actually mean? It is difficult for those living in an industrialised country

to truly appreciate the level of poverty in our country.

In the West, even those living in poverty can live in well-constructed dwellings, with

heating, clean running water, indoor toilet facilities, access to health care, and even a

vehicle. But such luxuries are a distant dream for India's poor.

The earlier definition of India's poverty was based on calorie intake, according to which

only 27.5 per cent of people were living below the poverty line as on March 1, 2004 and

the number of BPL families were about 6.5 crore (65 million).

As per the methodology suggested by the Tendulkar report, the number would swell to

37.2 per cent of the total population and the number of BPL families to about 8.1 crore

(81 million). The new poverty estimate which would reflect the impact of high growth

recorded during the decade, would be available in 2011. The computation of the number

of BPL families at the this stage assumes significance in view of the government's

decision to enact the food security law under which 25 kg of foodgrain at Rs 3 per kg

would be provided every month to a BPL family.

The EGoM on food, which had cleared the draft of the Food Security Bill last month, was

reportedly asked by United Progressive Alliance chairperson Sonia Gandhi to have a re-

look at the proposal and consider the possibility of raising the highly subsidised monthly

foodgrain allocation to 35 kg from 25 kg and increasing the number of beneficiaries.

Currently, a ration card holder is entitled to 35 kg of food grain every month. The Indian

government spends only 1 per cent of its gross domestic product on healthcare facilities.

The government has found that 100 million more Indians are actually living below the

poverty line than previously thought. Over 370 million Indians -- 40 per cent of the

population -- are now eligible for subsidised food supplies.

According to the World Bank, more people are living in extreme poverty in developing

countries than previously thought as it adjusted the recognised yardstick for measuring

global poverty to $1.25 a day from $1.The poverty-fighting institution said there were 1.4

billion people -- a quarter of the developing world -- living in extreme poverty on less

than $1.25 a day in 2005. Last year, the World Bank said there were 1 billion people

living under the previous $1 a day poverty mark.

India's official poverty measure has long been based solely upon the ability to purchase a

minimum recommended daily diet of 2,400 kilocalories (kcal) in rural areas where about

70 percent of people live, and 2,100 kcal in urban areas. Rural areas usually have higher

kcal requirements because of greater physical activity among rural residents.

The National Planning Commission, which is responsible for the estimate, currently

estimates that a monthly income of about Rs 356 (about $7.74) per person is needed to

provide the required diet in rural areas and Rs 539 in urban areas. Factors such as

housing, healthcare and transportation are not taken into account in the poverty estimates.

The estimate is derived from the National Sample Survey, which measures monthly per

capita consumer expense every five years.

The below poverty line population is currently estimated at 29 per cent in rural areas and

26 per cent in urban areas. The World Bank estimates that 1.4 billion people live below

an income of $1.25 per day and that 2.6 billion live below the $2 level worldwide.

According to oneworld.net, despite sustained high gross domestic product growth in

India, latest estimates of global poverty by World Bank suggest that India has more

people living below $2 than even sub-Saharan Africa.

According to the Bank's new estimates, India is home to roughly one-third of all the poor

in the world.

Source: Rediff

Posted by Varun Reddy at 10:53 5 comments Links to this post Labels: Below Poverty Line, Developing country, Government of India, Gross domestic product, Health care, India, Poverty, World Bank Reactions: 

Thursday, April 22, 2010

SBI Clerical Interview Experience - 2010

I present the Interview experience of a candidate named Balvinder who attended Sbi

Associates Clerical interview in 2009 and submitted her interview experience to this

blog.

Interviewer: why do u want to join the bank , as u have engineering background your

performance is fantastic in every field n u r lecturer in engineering college?

balvinder: I told them that i always wanted to come into banking field after doing mba

but due to some financial problems i could not make it. I have always admired my

paternal uncle who is in one of the psb employee at a very reputed designation....n as far

as my engineering background is concerned so i think i always stand one step ahead den

those who r plain graduate as i can handle each n every thing in a smarter way den a plain

graduate can do.

Int: Don’t you think that you are overqualified for this post?

bal: Yes i m aware of his fact but to me becoming a part of this organisation will b an

honour for me moreover this is my dream bank n this post will act as a first step to get

into this organisation.

Int: Don’t you get frustrated if a person with less knowledge and qualification will b your

boss/ senior?

bal: Absolutely not because if that person is a part of this organisation and holding a

respected designation then definitely he will b having some knowledge ...moreover i will

try to learn new things from that person n will try to move ahead in my professional life.

Int: Were do you see yourself after 5 yrs?

bal: Well i c my self at a managerial post (officer) in this organisation itself .

Int: r u mobile?

bal: yes i am .

Int: Do you any problem if u will b posted in a village?

Bal: Absolutely not.

Int: What will u do if an illiterate customer comes to you?

bal: I will first ask his purpose for visiting the bank on that basis will deal with him.

Int: What will u do if he has to open an saving a/c n at that time when you are busy in

your work?

bal: I will keep aside my work as every customer comes with a purpose. I will attend

him , will fill up his form and will complete all the formalities as he can help us in

increasing our business.

Int: As you have written in your bio-data form that you won soo many prizes in quiz

competition, so tell me tha news channels u watch?

bal: I told him few news channels (all were hindi).

Int: Don’t you watch English Channel?

bal: I said i do,

Int: He asked me to name them?

bal: i told him few channels like cnbc 18, cnbc awaaz,  zee business, etc.

Int: lastly they asked me to define bank?

bal: It is a financial institution which facilitates to make deposits, provided loans for

education, agriculture, and may other things.

Posted by Varun Reddy at 09:32 22 comments Links to this post Labels: bank, Banking Services, Banks and Institutions, Business, College, Engineering, Financial Services Reactions: 

Tuesday, April 20, 2010

RBI Annual Policy Statement 2010-11

The RBI on Tuesday(20-04-10) hiked short-term lending and borrowing rates(Repo and

Reverse repo Rates) and the portion of money banks deposit with it by 25 basis points

each, in a move aimed at controlling the double digit inflation.

The below list shows the present and increased key rates:

Policy Rates/Reserve

Ratios

        Present rate       Increased rates

1. Bank Rate              6.00%          Unchanged

2. Repo Rate              5.00%             5.25%

3. Reverse Repo Rate              3.50%             3.75%

4. Cash Reserve Ratio              5.75%             6.00%

5. Statutory Liquid Ratio              25.0%           unchanged

Cash Reserve Ratio (CRR) is the amount of funds that the banks have to keep with the

Reserve Bank of India. If RBI decides to increase the percent of this, the available

amount with the banks comes down. RBI is using this method (increase of CRR rate), to

drain out the excessive money from the banks. The hike in CRR, which will come into

effect from April 24.

As a result of the increase in the CRR, about Rs 12,500 crore of excess liquidity will be

absorbed from the banking system.

With the RBI deciding that banks now need to increase the amount of cash they have to

keep with the central bank (the cash reserves), the problem is that banks will not earn any

interest on this amount.

So banks will be left with little option but to hike interest rates to make up for that loss of

interest they would normally have earned had CRR been lower.

So Home loan, car loan and personal loans are likely to rise marginally that might burden

for the common man.

Why RBI was forced to hike rates?

The RBI said that the Indian economy is firmly on the recovery path. Exports have been

expanding since October 2009, a trend that is expected to continue.

On balance, under the assumption of a normal monsoon and sustenance of good

performance of the industrial and services sectors on the back of rising domestic and

external demand, for policy purposes the baseline projection of real GDP growth for

2010-11 is placed at 8.0 per cent with an upside bias.(Inputs from: Rediff)

Assuring that the policy actions would not halt the recovery, the RBI pegged the FY'11

GDP growth at 8 per cent. It also pegged the wholesale inflation, which is currently

hovering close to the double-digits (9.9 per cent in March), at 5.5 per cent for FY' 11.

Posted by Varun Reddy at 19:08 12 comments Links to this post Labels: bank, Business, Central bank, Inflation, Money, Official bank rate, Repurchase agreement Reactions: Newer Posts Older Posts Home Subscribe to: Posts (Atom)

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