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GENERAL AWARENESS CAPSULE FOR SBI PO MAINS/LIC/RBI
ASSISTANT/IBPS RRB and other Entrances. BANKING AWARENESS
CAPSULE
RBI Current Reserve Ratios and Policy Rates
1 Bank Rate 8.25%
2 Repo Rate 7.25%
3 Reverse Repo Rate 6.25%
4 CRR 4%
5 SLR 21.5%
6 MSF 8.25%
The Structure of Indian Banking The structure of the Indian
banking system can be categorized in two ways. The first divides
the banks into three categories: the Reserve Bank of India,
commercial banks and cooperative banks. The second divides the
banks into two categories: scheduled banks and non-scheduled banks.
In both of these systems of categorization, the Reserve Bank of
India, or RBI, is at the center of the banking structure. It holds
the reserve capital of all commercial and scheduled banks in the
country. Scheduled Banks The eligibility criteria exist for
scheduled banks: a) The first of which entails carrying on the
business of banking in India. b) All scheduled banks must maintain
a reserve capital of 5 lakhs rupees in the Reserve Bank of India.
c) These are registered under the second schedule of RBI Act, 1934.
Commericial Banks vs. Cooperative Banks Scheduled banks in India
fall into two categories: commercial banks and cooperative banks.
Commercial banks constitute those banks driven by profit. These
banks exist for no other reason than generating capital.
Cooperative banks technically constitute cooperative institutions
with an elected managing committee, provisions for the protection
of members' rights and a set of communally developed and approved
by laws and amendments.
RBI AND ITS ROLES RBI is the central Bank of India and controls
the entire money issue, circulation the entire money issue,
circulation and control by its monetary policies and lending
policies by periodical updates or corrections to discipline the
economy. It is also known as the bank of last resort.
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Establishment: The reserve bank of India was established on
April 1, 1935 in accordance with the provisions of the Reserve Bank
of India Act, 1934. The Central Office of the Reserve Bank of India
was initially established in Calcutta but was permanently moved to
Mumbai in 1937. Though originally privately owned, since
nationalization in 1949, the Reserve Bank is fully owned by the
Government of India. Main Functions 1) Monetary Authority:
Formulate, implements and monitors the monetary policy. 2)
Regulator and supervisor of the financial system: Prescribes broad
parameters of banking operations within which the countrys banking
and financial system functions. 3) Manager of Foreign Exchange:
Manages the Foreign Exchange Management Act, 1999. 4) Issuer of
Currency: Issues and exchanges or destroys currency and coins not
fit for circulations. 5) Development role: Performs a wide range of
promotional functions to support national objectives. 6) Bankers to
the Government: performs merchant banking function for the central
and the state governments; also acts as their banker. 7) Bankers to
banks: maintains banking accounts of all scheduled banks. Cheque It
is an instrument in writing containing an unconditional order,
addressed to a banker, sign by the person who has deposited money
with the banker, requiring him to pay on demand a certain sum of
money only to or to the order of certain person or to the bearer of
instrument." Types of Cheque 1. Bearer Cheque or open Cheque When
the words "or bearer" appearing on the face of the cheque are not
cancelled, the cheque is called a bearer cheque. The bearer cheque
is payable to the person specified therein or to any other else who
presents it to the bank for payment. 2. Order Cheque When the word
"bearer" appearing on the face of a cheque is cancelled and when in
its place the word "or order" is written on the face of the cheque,
the cheque is called an order cheque. Such a cheque is payable to
the person specified therein as the payee, or to any one else to
whom it is endorsed (transferred).
3. Crossed Cheque Crossing of cheque means drawing two parallel
lines on the face of the cheque with or without additional words
like "& CO." or "Account Payee" or "Not Negotiable". A crossed
cheque cannot be encashed at the cash counter of a bank but it can
only be credited to the payee's account. 4. Ante-Dated Cheque If a
cheque bears a date earlier than the date on which it is presented
to the bank, it is called as "ante-dated cheque". Such a cheque is
valid upto 3 months from the date of the cheque. 5. Post-Dated
Cheque If a cheque bears a date which is yet to come (future date)
then it is known as post-dated cheque. A post dated cheque cannot
be honoured earlier than the date on the cheque. 6. Stale Cheque If
a cheque is presented for payment after 3 months from the date of
the cheque it is called stale cheque. A stale cheque is not
honoured by the bank. 7. A self cheque A self cheque is written by
the account holder as pay self to receive the money in the physical
form from the branch where he holds his account. Terms in reference
to BANKING Repo Rate Repo rate is the rate of interest which is
levied on Short-Term loans taken by commercial banks from RBI.
Whenever the banks have any shortage of funds they can borrow it
from RBI. A reduction in the repo rate will help banks to get money
at a cheaper rate. When the repo rate increases, borrowing from RBI
becomes more expensive. Reverse Repo Rate This is exact opposite of
Repo rate. Reverse repo rate is the rate at which commercial banks
CHARGE on their surplus funds with RBI. RBI uses this tool when it
feels there is too much money floating in the banking system. Banks
are always happy to keep money with RBI since their money is in the
safe hands with a good interest. An increase in Reverse repo rate
can cause the banks to transfer more funds to RBI due to these
attractive interest rates.
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CRR Rate Cash reserve Ratio (CRR) is the amount of cash funds
that the banks have to maintain with RBI. 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. SLR Rate SLR
(Statutory Liquidity Ratio) is the amount a commercial bank needs
to maintain in the form of cash, or gold or government approved
securities (Bonds) before providing credit to its customers. SLR is
determined and maintained by the RBI in order to control the
expansion of bank credit. SLR is determined as the percentage of
total demand and time liabilities. Time Liabilities are the
liabilities a commercial bank is liable to pay to the customers
after a specific time period. SLR is used to control inflation and
proper growth. Through SLR tuning, the money supply in the system
can be controlled efficiently. Bank Rate Bank rate is the rate of
interest which is levied on Long Term loans and Advances taken by
commercial banks from RBI. Changes in the bank rate are often used
by central banks to control the money supply. MSF Rate:-MSF
(Marginal Standing Facility Rate) is the rate at which banks can
borrow overnight from RBI. This was introduced in the monetary
policy of RBI for the year 2011-2012. Banks can borrow funds
through MSF when there is a considerable shortfall of liquidity.
This measure has been introduced by RBI to regulate short-term
asset liability mismatches more effectively. Base Rate:-The Base
Rate is the minimum interest rate of a Bank below which it cannot
lend, except for DRI advances, loans to bank's own employees and
loan to banks' depositors against their own deposits. (i.e. cases
allowed by RBI). Bridge Loan:- A loan made by a bank for a short
period to make up for a temporary shortage of cash. Bridge loan
covers this period between the buying the new and disposing of the
old one. Credit Authorization Scheme:-Credit Authorization Scheme
was introduced in November, 1965 when P C
Bhattacharya was the chairman of RBI. Under this instrument of
credit regulation RBI as per the guideline authorizes the banks to
advance loans to desired sectors Open Market Operations:-An open
market operation is an instrument of monetary policy which involves
buying or selling of government securities from or to the public
and banks. Moral Suasion:-Moral Suasion is just as a request by the
RBI to the commercial banks to take so and so action and measures
in so and so trend of the economy. RBI may request commercial banks
not to give loans for unproductive purpose which does not add to
economic growth but increases inflation. Special Drawing Rights
(SDRs):-It is a reserve asset (known as Paper Gold) created within
the framework of the International Monetary Fund in an attempt to
increase international liquidity, and now forming a part of
countries official forex reserves along with gold, reserve
positions in the IMF and convertible foreign currencies. ATM: ATMs
are Automatic Teller Machines, which do the job of a teller in a
bank through Computer Network. ATMs are located on the branch
premises or off branch premises. ATMs are useful to dispense cash,
receive cash, accept cheques, give balances in the accounts and
also give mini-statements to the customers. Bouncing of a cheque:
Where an account does not have sufficient balance to honour the
cheque issued by the customer, the cheque is returned by the bank
with the reason "funds insufficient" or "Exceeds arrangement". This
is known as 'Bouncing of a cheque'. Demat Account: The term
"demat", in India, refers to a dematerialised account for
individual Indian citizens to trade in listed stocks or debentures.
Endorsement: When a Negotiable Instrument contains, on the back of
the instrument an endorsement, signed by the holder or payee of an
order instrument, transferring the title to the other person, it is
called endorsement. Merchant Banking : When a bank provides to a
customer various types of financial services like
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accepting bills arising out of trade, arranging and providing
underwriting, new issues, providing advice, information or
assistance on starting new business, acquisitions, mergers and
foreign exchange. Money Laundering The process of creating the
appearance that large amounts of money obtained from serious
crimes, such as drug trafficking or terrorist activity, originated
from a legitimate source. Mortgage: Transfer of an interest in
specific immovable property for the purpose of offering a security
for taking a loan or advance from another. It may be existing or
future debt or performance of an agreement which may create
monetary obligation for the transferor (mortgagor). NABARD:
National Bank for Agriculture & Rural Development was setup in
1982 under the Act of 1981. NABARD finances and regulates rural
financing and also is responsible for development agriculture and
rural industries. NABARD is an apex Development Bank that
facilitates credit flow for promotion and development of
agriculture, small-scale industries, cottage and village
industries, handicrafts and other rural crafts.
GAAR: The full form of GAAR is : General Anti-Avoidance Rules.
Tax Avoidance is an area of concern across the world. The rules are
framed in different countries to minimize such avoidance of tax. It
is a set of general rules enacted so as to check the tax avoidance.
BPLR: In banking parlance, the BPLR means the Benchmark Prime
Lending Rate. However, with the introduction of Base Rate
(explained below), BPLR has now lost its importance and is made
applicable normally only on the loans which have been sanctioned
before the introduction of Base Rate (i.e. July 2010). Prime
Lending Rate (PLR): The rate at which banks lend to their best
(prime) customers. It is usually less than normal interest rate.
Wholesale Banking: Wholesale banking is different from Retail
Banking as its focus is on providing for financial needs of
industry and institutional clients. National Electronic Funds
Transfer System (NEFT): RBI introduced an electronic funds transfer
system to facilitate an efficient, secure, economical,
reliable and expeditious system of funds transfer and clearing
in the banking sector throughout India, and to relieve the stress
on the existing paper-based funds transfer and clearing system
called National Electronic Funds Transfer System (NEFT System).
RTGS: RTGS is an acronym that stands for Real Time Gross
Settlement. RTGS is a funds transfer system where money is moved
from one bank to another in real-time, and on gross basis. When
using the banking method, RTGS is the fastest possible way to
transfer money. Real-time means that the payment transaction isnt
subject to any waiting period. The transaction will be completed as
soon as the processing is done, and gross settlement means that the
money transfer is completed on a one to one basis without
clustering with another transaction. This system is maintained by
the RBI, and is available during working days for a given number of
hours. Banks using RTGS need to have Core banking to be able to
initiate RTGS transactions. Money Market - The money market is a
wholesale debt market for low-risk, highly-liquid, short-term
instrument. Funds are available in this market for periods ranging
from a single day up to a year. This market is dominated mostly by
government, banks and financial institutions. Capital Market - The
capital market is designed to finance the long-term investments.
The transactions taking place in this market will be for periods
over a year. Forex Market - The Forex market deals with the
multicurrency requirements, which are met by the exchange of
currencies. Depending on the exchange
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rate that is applicable, the transfer of funds takes place in
this market. Financial Inclusion: Financial inclusion or inclusive
financing is the delivery of financial services, at affordable
costs, to sections of disadvantaged and low income segments of
society. Money Market Instruments:- The money market can be defined
as a market for short-term money and financial assets that are near
substitutes for money. The term short-term means generally a period
upto one year and near substitutes to money is used to denote any
financial asset which can be quickly converted into money with
minimum transaction cost. Some of the important money market
instruments are briefly discussed below; 1. Call/Notice Money 2.
Treasury Bills 3. Term Money 4. Certificate of Deposit 5.
Commercial Papers 1. Call /Notice-Money Market:-1.Call/Notice money
is the money borrowed or lent on demand for a very short period.
When money is borrowed or lent for a day, it is known as Call
(Overnight) Money. Intervening holidays and/or Sunday are excluded
for this purpose. Thus money, borrowed on a day and repaid on the
next working day, (irrespective of the number of intervening
holidays) is "Call Money".
Notice Money:-When money is borrowed or lent for more than a day
and up to 14 days, it is "Notice Money". No collateral security is
required to cover these transactions. 2. Inter-Bank Term
Money:-Inter-bank market for deposits of maturity beyond 14 days is
referred to as the term money market. The entry restrictions are
the same as those for Call/Notice Money except that, as per
existing regulations, the specified entities are not allowed to
lend beyond 14 days. 3. Treasury Bills:-Treasury Bills are short
term (up to one year) borrowing instruments of the union
government. It is a promise by the Government to pay a stated sum
after expiry of the stated period from the date of issue
(14/91/182/364 days i.e. less than one
year). They are issued at a discount to the face value, and on
maturity the face value is paid to the holder. The rate of discount
and the corresponding issue price are determined at each
auction.
4. Certificate of Deposits:- Receipt issued by a depository
institution (such as a bank, credit union, or a finance or
insurance company) to a depositor who opens a certificate account
or time deposit account. Issued in a negotiable or non-negotiable
form, it states the (1) amount deposited, (2) rate of interest, and
(3) minimum period for which the deposit should be maintained
without incurring early withdrawal penalties. 5. Commercial Paper:
An unsecured obligation issued by a corporation or bank to finance
its short-term credit needs, such as accounts receivable and
inventory. Commercial paper is available in a wide range of
denominations, can be either discounted or interest-bearing, and
usually have a limited or nonexistent secondary market.
Other Financial Terminology Personal Identification Number
(PIN):-An account holder has a secret number or code to authorize a
transaction or obtain information regarding his or her account
often used in conjunction with a plastic card
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(ATM or Debit Card), online account access or with a telephone
voice response system. Foreign Exchange Reserves:- Foreign-exchange
reserves currency central banks gold, special drawing rights
International Monetary Fund (also called forex reserves or FX
reserves) in a strict sense are 'only' the foreign deposits and
bonds held by and monetary authorities. However, the term in
popular usage commonly includes foreign exchange and (SDRs), and
(IMF) reserve positions. NRI Banking:- Banks allow NRIs to open an
NRI account when they complete the account opening formalities. A
customer for this purchase a form has to be filled up in which the
information soughtly the bank is provided. They can have a NRI
Saving Bank Account, Current Account, Fixed Deposits in Indian
Rupees, Fixed Deposits in foreign currency, NRO account (Rupee
account for crediting income in India) Capital Adequacy Ratio
(CAR):- Capital adequacy ratio measures the amount of a banks
capital expressed as a percentage of its credit exposure. Globally,
the capital adequacy ratio has been developed to ensure banks can
absorb a reasonable level of losses before becoming insolvent.
Indian banks are expected to maintain a minimum capital adequacy
ratio of 9 per cent (Rs 9 as capital for every Rs 100 in loan or
asset) Asset Liability Mismatch:-In finance, an assets liabilities
assetliability mismatch occurs when the financial terms of an
institution's and do not correspond. Initial Public Offerings
(IPOs): When a company opens to investments from the public by
offering shares for the first time it is known as initial public
offer. Application Supported by Blocked Accounts (ASBA) ASBA is an
investor friendly service introduced for subscribing to IPOs.
Through this facility, the investors funds remain in his account
till allotment of shares. Then, the amount equivalent to the shares
allotted is deducted from the blocked amount for remitting to the
company issuing the shares and the balance amount is available to
the investor. Follow on Public Offer (FPO) When a listed company
makes another public issue to raise further capital it is known as
follow on public offer.
MONEY AND ITS TYPES Money is a thing that is usually accepted as
payment for goods and services as well as for the repayment of
debts. Money originated as commodity money, but almost all
contemporary money systems are based on concept of fiat money.
Commodity Money - Commodity money value is derived from the
commodity out of which it is made. The commodity itself represents
money, and the money is the commodity. For instance, commodities
that have been used a Medium of exchange include gold, silver,
copper, salt, peppercorns, rice, large stones, etc. Representative
Money - is money that includes token coins, or any other physical
tokens like certificates, that can be reliably exchanged for a
fixed amount/quantity of a commodity like gold or silver. Fiat
Money - Fiat money, also known as fiat currency is the money whose
value is not derived from any intrinsic value or any guarantee that
it can be converted into valuable commodity (like gold). Instead,
it derives value only based On government order (fiat) Commercial
Bank Money - Commercial bank money or the demand deposits are
claims against financial institutions which can be used for
purchasing goods and services Mutual Funds Mutual Fund is a company
which collects the savings of a large number of investors for
investment purposes. Mutual Funds invest in capital markets like
stocks and other securities. The professional fund manager selects
appropriate securities based on company profile and market
conditions for capital appreciation.
Non Banking Financial Companies (NBFCs) Non Banking Financial
Company (NBFC) is a company registered under the Companies Act
1956, and is
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engaged in the business of loans and advances, acquisition of
stocks, debentures, hire purchase. NEGOTIABLE INSTRUMENTS
DEFINITION OF NEGOTIABLE INSTRUMENT According to section 13 of the
Negotiable Instruments Act, 1881, a negotiable instrument means
promissory note, bill of exchange, or cheque, payable either to
order or to bearer. TYPES OF NEGOTIABLE INSTRUMENTS There are three
types of negotiable instruments which are: 1. Promissory Note 2.
Bill of Exchange 3. Cheques 1. Promissory Note: A Promissory Note
is a written promise by the debtor to pay a certain amount to the
creditor. Section 4 of the Negotiable Instrument Act has defined
Promissory Note as an instrument in writing containing an
unconditional undertaking, signed by the maker, to pay a certain
sum of money only to or to the order of a certain person. 2. Bill
of Exchange: An instrument in writing containing an unconditional
order, signed by the maker, directing a certain person to pay a
certain sum of money only to, or to the order of, a certain person
or to the bearer of the instrument. 3. Cheques: Cheque is a very
common form of negotiable instrument. If you have a savings bank
account or current account in a bank, you can issue a cheque in
your own name or in favor of others, thereby directing the bank to
pay the specified amount to the person named in the cheque. Foreign
Accounts in India a) NRO A/c (Foreign Tourist) Can foreign tourists
open a bank account in India during their short visit? Yes. Foreign
tourists during their short visit to India can open a Non-Resident
(Ordinary) Rupee (NRO) account (Current / Savings) with any
Authorised Dealer bank dealing in foreign exchange. Such account
can be opened up to a maximum period of 6 months. What are the
documents required for opening such accounts?
Passports and other valid identification proofs are required for
opening the accounts. Authorised Dealer banks are also required to
follow the Know Your Customer norms while opening of the accounts.
What credits can be made to such accounts? Funds remitted from
outside India through banking channel or those obtained by sale of
foreign exchange brought by the tourists to India can be credited
to the NRO account. Can the NRO account be used for making local
payments? Yes. Tourists can freely make local payments through the
NRO account. All payments to residents exceeding INR 50,000 can be
made only by means of cheques / pay orders / demand drafts. b) EEFC
A/c What is an EEFC Account and what are its benefits? Ans.
Exchange Earners' Foreign Currency Account (EEFC) is an account
maintained in foreign currency with an Authorised Dealer i.e. a
bank dealing in foreign exchange. It is a facility provided to the
foreign exchange earners, including exporters, to credit 100 per
cent of their foreign exchange earnings to the account, so that the
account holders do not have to convert foreign exchange into Rupees
and vice versa, thereby minimizing the transaction costs. Who can
open an EEFC account? Ans. All categories of foreign exchange
earners, such as individuals, companies, etc. who are resident in
India, may open EEFC accounts. What are the different types of EEFC
accounts? Can interest be paid on these accounts? Ans. An EEFC
account can be held only in the form of a current account. No
interest is payable on EEFC accounts. Accounts for NRI/PIO What are
the different types of accounts which can be maintained by an
NRI/PIO in India? Types of accounts which can be maintained by an
NRI / PIO in India:
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A. Non-Resident Ordinary Rupee Account (NRO Account) NRO
accounts may be opened / maintained in the form of current,
savings, recurring or fixed deposit accounts. Interest rates
offered by banks on NRO deposits cannot be higher than those
offered by them on comparable domestic rupee deposits. Account
should be denominated in Indian Rupees. Permissible credits to NRO
account are transfers from rupee accounts of non-resident banks,
remittances received in permitted currency from outside India
through normal banking channels, permitted currency tendered by
account holder during his temporary visit to India, legitimate dues
in India of the account holder like current income like rent,
dividend, pension, interest, etc., sale proceeds of assets
including immovable property acquired out of rupee/foreign currency
funds or by way of legacy/ inheritance. NRI/PIO may remit from the
balances held in NRO account an amount not exceeding USD one
million per financial year, subject to payment of applicable taxes.
The limit of USD 1 million per financial year includes sale
proceeds of immovable properties held by NRIs/PIOs. B. Non-Resident
(External) Rupee Account (NRE Account) 1) NRE account may be in the
form of savings, current, recurring or fixed deposit accounts. 2)
Such accounts can be opened only by the non-resident himself and
not through the holder of the power of attorney. 3) Account will be
maintained in Indian Rupees. 4) Accrued interest income and
balances held in NRE accounts are exempt from Income tax. 5)
Authorised dealers/authorised banks may at their discretion allow
for a period of not more than two weeks, overdrawings in NRE
savings bank accounts, up to a limit of Rs.50,000. 6) Loans up to
Rs.100 lakh can be extended against security of funds held in NRE
Account either to the depositors or third parties. C. Foreign
Currency Non Resident (Bank) Account FCNR (B) Account FCNR (B)
accounts are only in the form of term deposits of 1 to 5 years
Account can be in any freely convertible currency.
Loans up to Rs.100 lakh can be extended against security of
funds held in FCNR (B) deposit either to the depositors or third
parties. The interest rates are stipulated by the Department of
Banking Operations and Development, Reserve Bank of India. DICGC
Which banks are insured by the DICGC? Commercial Banks: All
commercial banks including branches of foreign banks functioning in
India, local area banks and regional rural banks are insured by the
DICGC.
What does the DICGC insure? In the event of a bank failure,
DICGC protects bank deposits that are payable in India. The DICGC
insures all deposits such as savings, fixed, current, recurring,
etc. except the following types of deposits. (i) Deposits of
foreign Governments; (ii) Deposits of Central/State Governments;
(iii)Inter-bank deposits; (iv) Deposits of the State Land
Development Banks with the State co-operative bank; (v) Any amount
due on account of any deposit received outside India (vi) Any
amount, which has been specifically exempted by the corporation
with the previous approval of Reserve Bank of India. What is the
maximum deposit amount insured by the DICGC? Each depositor in a
bank is insured upto a maximum of Rs.1,00,000 (Rupees One Lakh) for
both principal and interest amount held by him in the same
capacity. Does the DICGC insure just the principal on an account or
both principal and accrued interest? The DICGC insures principal
and interest upto a maximum amount of Rs. One lakh. Are deposits in
different banks separately insured? Yes. If you have deposits with
more than one bank, deposit insurance coverage limit is applied
separately to the deposits in each bank.
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Can the bank deduct the amount of dues payable by the depositor?
Yes. Banks have the right to set off their dues from the amount of
deposits. The deposit insurance is available after netting of such
dues. Can any insured bank withdraw from the DICGC coverage? No.
The deposit insurance scheme is compulsory and no bank can withdraw
from it. ATM What is an Automated Teller Machine (ATM)? Automated
Teller Machine is a computerized machine that provides the
customers of banks the facility of accessing their account for
dispensing cash and to carry out other financial &
non-financial transactions without the need to actually visit their
bank branch. What type of cards can be used at an ATM? The ATM
debit cards, credit cards and prepaid cards (that permit cash
withdrawal) issued by banks can be used at ATMs for various
transactions. What are the services/facilities available at ATMs?
In addition to cash dispensing ATMs may have many
services/facilities enabled by the bank owning the ATM such as:
Account information Cash Deposit Regular bills payment Purchase of
Re-load Vouchers for Mobiles Mini/Short Statement Loan account
enquiry etc. How can one transact at an ATM? For transacting at an
ATM, the customer inserts /swipes his/her Card in the ATM and
enters his/her Personal Identification Number(PIN) issued by
his/her bank. What is Personal Identification Number (PIN)? PIN is
the numeric password which is separately mailed / handed over to
the customer by the bank while issuing the card. Most banks require
the customers to change the PIN on the first use. Can these cards
be used at any bank ATM in the country? Is the customer charged for
the same? Yes. The cards issued by banks in India may be used at
any bank ATM within India. However the savings bank
account holders can transact a maximum of five transactions free
at other bank ATMs in a month, which is inclusive of all types of
transactions, financial and non-financial, beyond which the
customer can be charged by his/her bank. Is there any minimum and
maximum cash withdrawal limit per day? Yes, broadly the withdrawal
limits are set by the card issuing banks. This limit is displayed
at the respective ATM locations.
What steps should a customer take in case of failed ATM
transaction at other bank ATMs, where his account is debited? The
customer should lodge a complaint with the card issuing bank at the
earliest. This process is applicable even if the transaction was
carried out at another banks ATM. Is there any time limit for the
card issuing banks for re-crediting the customers account for a
failed ATM transaction? As per the RBI instructions, banks have
been mandated to resolve customer complaints by re-crediting the
customers account within 7 working days from the date of complaint.
Are the customers eligible for compensation for delays beyond 7
working days? Yes. Effective from July 1, 2011, banks have to pay
customers Rs. 100/- per day for delays beyond 7 working days. The
compensation has to be credited to the account of the customer
without any claim being made by the customer.
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BANKING OMBUDSMAN SCHEME 2006 i. The Banking Ombudsman Scheme
enables a bank customer for filing of complaints relating to
certain services rendered by banks. ii. The Banking Ombudsman is a
senior official appointed by the Reserve Bank of India to redress
customer complaints against deficiency in certain banking services.
iii. All Scheduled Commercial Banks, Regional Rural Banks and
Scheduled Primary Co-operative Banks are covered under the Scheme.
Other Important Points: 4) The Banking Ombudsman does not charge
any fee for filing and resolving customers complaints. 5) The
maximum compensation which a BO can help a complainant to get is
Rs. 10 lakhs. 6) If a complaint is not settled by an agreement
within a period of one month, the Banking Ombudsman proceeds
further to pass an award. Before passing an award, the Banking
Ombudsman provides reasonable opportunity to the complainant and
the bank, to present their case. 7) If one is not satisfied with
the decision passed by the Banking Ombudsman, one can approach the
appellate authority who is the Deputy Governor of the RBI. BANKS IN
INDIA AS ON April 2015 1) There are a total of 27 PSBs in India [21
NationaliZed banks + 6 State bank group (SBI + 5 associates)] 2) At
present there are 22 Private Banks functioning in India 3) At
present there are 56 RRBs (Regional Rural Banks ) functioning in
India. 4) At present there are 41 Foreign Banks functioning in
India PRIORITY SECTOR LENDING
The salient features of the guidelines are as under:-
(i) Categories of the priority sector: Medium Enterprises,
Social Infrastructure and Renewable Energy will form part
of priority sector, in addition to the existing categories.
(ii) Agriculture: The distinction between direct and
indirect
agriculture is dispensed with.
(iii) Small and Marginal Farmers: A target of 8 percent of
ANBC or Credit Equivalent Amount of Off-Balance Sheet
Exposure, whichever is higher, has been prescribed for
Small and Marginal Farmers within agriculture, to be
achieved in a phased manner i.e., 7 percent by March
2016 and 8 percent by March 2017.
(iv) Micro Enterprises: A target of 7.5 percent of ANBC or
Credit Equivalent Amount of Off-Balance Sheet Exposure,
whichever is higher, has been prescribed for Micro
Enterprises, to be achieved in a phased manner i.e. 7
percent by March 2016 and 7.5 percent by March 2017.
(v) There is no change in the target of 10 percent of ANBC
or Credit Equivalent Amount of Off-Balance Sheet
Exposure, whichever is higher, for Weaker Sections.
(vi) Target for Foreign Banks: Foreign Banks with 20
branches and above already have priority sector targets
and sub-targets for Agriculture and Weaker Sections,
which are to be achieved by March 31, 2018 as per the
action plans submitted by them and approved by RBI.
Foreign banks with less than 20 branches will move to
Total Priority Sector Target of 40 percent of ANBC or
Credit Equivalent Amount of Off-Balance Sheet Exposure,
whichever is higher, on par with other banks by 2019-20,
and the sub-targets for these banks, if to be made
applicable post 2020, would be decided in due course.
(vii) Bank loans to food and agro processing units will form
part of Agriculture.
(viii) Export credit: Export credit upto 32 percent of ANBC
or Credit Equivalent Amount of Off-Balance Sheet
Exposure, whichever is higher, will be eligible as part of
priority sector for foreign banks with less than 20
branches. PSL in detail
1. What is meant by Priority Sector? Priority sector refers to
those sectors of the economy which may not get timely and adequate
credit in the absence of this special dispensation. Typically,
these are small value loans to farmers for agriculture and allied
activities, micro and small enterprises, poor people for housing,
students for education and other low income groups and weaker
sections. 2. What are the different categories under priority
sector? Priority Sector includes the following categories:
Agriculture Micro, Small and Medium Enterprises Export Credit
Education Housing Social Infrastructure Renewable Energy Others
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3. What are the Targets and Sub-targets for banks under priority
sector?
Categories
Domestic scheduled
commercial banks and
Foreign banks with 20
branches and above
Foreign
banks
with less
than 20
branches
Total
Priority
Sector
40 percent of Adjusted
Net Bank Credit or Credit
Equivalent Amount of
Off-Balance Sheet
Exposure, whichever is
higher.
40 percent
of Adjusted
Net Bank
Credit or
Credit
Equivalent
Amount of
Off-Balance
Sheet
Exposure,
whichever
is higher; to
be achieved
in a phased
manner by
2020
Agriculture 18 percent of ANBC or
Credit Equivalent Amount
of Off-Balance Sheet
Exposure, whichever is
higher.
Within the 18 percent
target for agriculture, a
target of 8 percent of
ANBC or Credit
Equivalent Amount of
Off-Balance Sheet
Exposure, to be achieved
in a phased manner
i.e., 7 per cent by
March 2016 and 8 per
cent by March 2017.
Not
applicable
Micro
Enterprises
7.5 percent of ANBC or
Credit Equivalent Amount
of Off-Balance Sheet
Exposure, whichever is
higher to be achieved in
Not
Applicable
a phased manner i.e. 7
per cent by March
2016 and 7.5 per cent
by March 2017.
The sub-target for Micro
Enterprises for foreign
banks with 20 branches
and above would be
made applicable post
2018 after a review in
2017.
Advances
to Weaker
Sections
10 percent of ANBC or
Credit Equivalent Amount
of Off-Balance Sheet
Exposure, whichever is
higher.
Not
Applicable
(ii) The Total Priority Sector target of 40 percent for
foreign banks with less than 20 branches has to be
achieved in a phased manner as under:-
Financial
Year
The Total Priority
Sector as
percentage of ANBC
or Credit Equivalent
Amount of Off-
Balance Sheet
Exposure,
whichever is higher
2015-16 32
2016-17 34
2017-18 36
2018-19 38
2019-20 40
4. What constitutes Micro and Small Enterprises under priority
sector? Bank loans to Micro and Small Manufacturing and Service
Enterprises, provided these units satisfy the criteria for
investment in plant machinery/equipment as per MSMED Act 2006.
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Manufacturing sector
Enterprises Investment in plant and machinery
Micro Enterprises Do not exceed twenty five lakh rupees
Small Enterprises More than twenty fivelakh rupees but does not
exceed five crore rupees
Enterprises Investment in equipment
Micro Enterprises Does not exceed ten lakh rupees
Small Enterprises More than ten lakh rupees but does not exceed
two crore rupees
5. What is the loan limit for education under priority sector?
Loans to individuals for educational purposes including vocational
courses upto `10 lakh for studies in India and `20 lakh for studies
abroad are included under priority sector.
6. What is the limit for housing loans under priority sector?
Loans to individuals up to 28 lakh in metropolitan centres (with
population of ten lakh and above) and loans up to 20 lakh in other
centres for purchase/construction of a dwelling unit per family
provided the overall cost of the dwelling unit in the metropolitan
centre and at other
centres should not exceed 35 lakh and 25 lakh respectively.
7. Limits under Social infrastructure
Bank loans up to a limit of 5 crore per borrower for
building social infrastructure for activities namely
schools,
health care facilities, drinking water facilities and
sanitation
facilities in Tier II to Tier VI centres.
8. Limits under Renewable Energy
Bank loans up to a limit of 15 crore to borrowers for
purposes like solar based power generators, biomass
based power generators, wind mills, micro-hydel plants
and for non-conventional energy based public utilities viz.
street lighting systems, and remote village electrification.
For individual households, the loan limit will be 10 lakh
per borrower.
Miscellaneous Banking Topics What is Asset Management Companies?
A company that invests its clients' pooled fund into securities
that match its declared financial objectives. Asset management
companies provide investors with
more diversification and investing options than they would have
by themselves. Mutual funds, hedge funds and pension plans are all
run by asset management companies. These companies earn income by
charging service fees to their clients. What is Liquidity
Adjustment Facility(LAF)? A tool used in monetary policy that
allows banks to borrow money through repurchase agreements. This
arrangement allows banks to respond to liquidity pressures and is
used by governments to assure basic stability in the financial
markets. What is Bancassurance? It is the term used to describe the
partnership or relationship between a bank and an insurance company
whereby the insurance company uses the bank sales channel in order
to sell insurance products. Balance of Trade: The value of a
countrys exports minus the value of its imports. Unless specified
as the balance of merchandise trade, it normally incorporates trade
in services, including earnings (interest, dividends, etc.) on
financial assets. Balance of Payments: A list of all of a countrys
international transactions for a given time period, usually one
year. Payments into the country (receipts) are entered as positive
numbers, called credits; Payments out of the country (payments) are
entered as negative numbers called debits. A single numbers
summarize all of a countrys international transactions: the balance
of payments surplus. NOSTRO Account: A Nostro account is maintained
by an Indian Bank in the foreign countries. VOSTRO Account: A
Vostro account is maintained by a foreign bank in India with their
corresponding bank. Lead Banking Scheme: Under this scheme all the
nationalized banks and few private sector banks were allowed
specially and were asked to play the Lead Role. The lead banks act
as a leader to bring about co-ordination of cooperative banks,
commercial banks and
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other financial institutions in their respective demises to
bring about rapid economic development. CAMELS: Capital Adequacy,
Asset Quality, Management, Earnings Liquidity and Systems.
Nationalization of Banks How many banks were nationalized during
the first stage in our country? Nineteen banks were nationalized
during the first stage on 19.07.1969 A separate act namely Banking
companies acquisition and undertakings act 1970 was promulgated in
order to commence the banks as nationalized banks The following
banks were nationalized during the first stage: a) Central Bank of
India; b) Bank of Maharashtra; c) Dena Bank; d) Punjab National
Bank; e) Syndicate Bank; f) Canara Bank; g) Indian Bank; h) Indian
Overseas Bank; i) Bank of Baroda; j) Union Bank of India; k)
Allahabad Bank; l) United Bank of India; m) United Commercial Bank;
n) Bank of India. What do you mean by the second stage of bank
nationalisation? While fourteen banks were nationalized on
19.7.1969, six banks were once again nationalized during the year
1980 on 15.4.1980 with an objective to achieve the social
objectives The following are the banks which were nationalized
during 1980: Andhra Bank, Punjab and Sind Bank, New Bank of India,
Vijaya Bank, Corporation Bank, Oriental Bank of Commerce New Bank
of India subsequently merged with Punjab National Bank
NPA-Non-Performing Asset& SARFAESI It means once the
borrower has failed to make interest or principal payments for 90
days, the loan is considered to be a non-performing asset. SARFAESI
Act and Rules SARFAESI Act (The Securitization and Reconstruction
of Financial Assets and Enforcement of Security Interest Act, 2002)
was enacted to regulate securitization and reconstruction of
financial assets and enforcement of
security interest created in respect of Financial Assets to
enable realization of such assets. The SARFAESI Act provides for
the manner for enforcement of security interests by a secured
creditor without the intervention of a court or tribunal. If any
borrower fails to discharge his liability in repayment of any
secured debt within 60 days of notice from the date of notice by
the secured creditor, the secured creditor is conferred with powers
under the SARFAESI Act to a) take possession of the secured assets
of the borrower, including transfer by way of lease,assignment or
sale, for realizing the secured assets b) takeover of the
management of the business of the borrower including the right to
transferby way of lease, assignment or sale for realizing the
secured assets, c) appoint any person to manage the secured assets
possession of which is taken by thesecured creditor, and d) require
any person, who has acquired any of the secured assets from the
borrower andfrom whom money is due to the borrower, to pay the
secured creditor so much of the money as if sufficient to pay the
secured debt. Other points IMPS: Immediate Payment Service. It is
an instant interbank electronic fund transfer service through
mobile phones. Both the customers must have MMID (Mobile Money
Identifier Number). For this service, we dont need any GPS-enabled
cell phones. BCBS: Basel Committee on Banking Supervision is an
institution created by the Central Bank governors of the Group of
Ten nations. IFSC code: Indian Financial System Code. The code
consists of 11 characters for identifying the bank and branch where
the account in actually held. The IFSC code is used both by the
RTGS and NEFT transfer systems.
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MICR Code: Magnetic ink character recognition (MICR) is a
character-recognition technology used mainly by the banking
industry to ease the processing and clearance of cheques and other
documents. It is at the bottom of cheques and other vouchers and
typically includes the document-type indicator, bank code, bank
account number, cheque number, cheque amount, and a control
indicator. MSME and SME: Micro Small and Medium Enterprises (MSME),
and SME stands for Small and Medium Enterprises. This is an
initiative of the government to drive and encourage small
manufacturers to enjoy facilities from banks at concessional
rates.
LIBOR: London InterBank Offered Rate. An interest rate at which
banks can borrow funds, in marketable size, from other banks in the
London interbank market. LIBID: London Interbank Bid Rate. The
average interest rate at which major London banks borrow
Eurocurrency deposits from other banks. ECGC: Export Credit
Guarantee Corporation of India. This organisation provides risk as
well as insurance cover to the Indian exporters.
SWIFT: Society for Worldwide Interbank Financial
Telecommunication. It operates a worldwide financial messaging
network which exchanges messages between banks and other financial
institutions. STRIPS: Separate Trading for Registered Interest
& Principal Securities. CIBIL: Credit Information Bureau of
India Limited. CIBIL is Indias first credit information bureau.
Whenever a person applies for new loans or credit card(s) to a
financial institution, they generate the CIBIL report of the said
person or concern to judge the credit worthiness of the person and
also to verify their existing track record. CIBIL actually
maintains the borrowers history. CRISIL: Credit Rating Information
Services of India Limited. Crisil is a global analytical company
providing ratings, research, and risk and policy advisory services.
Financial inclusion Financial inclusion involves 1) Give formal
banking services to poor people in
urban & rural areas. 2) Promote habit of money-savings,
insurance,
pension-investment among poor-people. 3) Help them get loans at
reasonable rates from
normal banks. So they dont become victims in the hands of local
moneylender.
Three important initiatives taken by RBI for financial
inclusion: 1) Lead banking scheme (LBS). RBI asked every bank to
choose a particular district. That Bank will be responsible for
promoting banking services and financial literacy, in that
district. 2) No frills account replaced in 2012 by BSBDA- Poor
people can open bank accounts with ZERO balance on 10th august 2012
no frills replaced by basic saving bank account 3) Business
Correspondents (BC) system. Business correspondents are bank
representatives. they personally goes to the area allotted to them
and carry out banking. They help villagers to open bank accounts.
They help villagers in banking transactions. (deposit
money, take money out of savings account, loans etc.)
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The Business Correspondent carries a mobile device.
The villager gives his thumb impression or electronic signature,
and get the money.
Business Correspondents get commission from bank for every new
account opened, every transection made via them, every
loan-application processed etc.
KISAN CREDIT CARD KCC is a credit facility given to the farmers
based on the total yield capacity of their agriculture land. The
money withdrawn is to be paid back in 1 year attracting 7% interest
rate but if the individual pays the credit in time then 3% of
interest is paid back to his amount, but this facility is available
only for those KCC which has a annual limit of less than or upto 3
lakh. What is Self Help Group(SHG) Self Help Group is a homogeneous
group of micro entrepreneurs with affinity among themselves,
voluntarily formed to save whatever amount they can conveniently
save out of their earnings and mutually agree to contribute to a
common fund of the group from which small loans are given to the
members for meeting their productive and emergent credit needs at
such rate of interest, period of loan and other terms as the group
may decide. What do you know by currency chest? Currency chests are
operated by RBI so that they can provide good quality currency
notes to the public. However, RBI has appointed commercial banks to
open and monitor currency chests on behalf of RBI. The cash kept in
currency chests is considered to be kept in RBI. What do you mean
by narrow banking? It is the system of banking under which the bank
accepts deposits from the public and places the funds accepted in
100 percent risk free assets with maturity matching for its
liabilities. The bank takes no risk of lending at all. What is a
small coin depot? Some bank branches are also authorised to
establish Small Coin Depots to stock small coins. The Small Coin
Depots also distribute small coins to other bank branches in their
area of operation.
What are soiled, mutilated and imperfect banknotes? (i) "soiled
note:" means a note which, has become dirty due to usage and also
includes a two piece note pasted together wherein both the pieces
presented belong to the same note, and form the entire note. (ii)
Mutilated banknote is a banknote, of which a portion is missing or
which is composed of more than two pieces. (iii) Imperfect banknote
means any banknote, which is wholly or partially, obliterated,
shrunk, washed, altered or indecipherable but does not include a
mutilated banknote. Unclaimed Deposits and Inoperative/ Dormant
Accounts 1. UCBs should carry out an annual review of accounts in
which there are no operations (i.e. no credit or debit other than
crediting of periodic interest or debiting of service charges) for
more than one year. The banks may approach the customers and inform
them in writing that there has been no operation in their accounts
and ascertain the reasons for the same. 2. If the letters are
returned undelivered, they may immediately be put on enquiry to
find out the whereabouts of customers or their legal heirs in case
they are deceased. 3. A savings as well as current account should
be treated as inoperative / dormant if there are no transactions in
the account for over a period of two years. REVERSE MORTGAGE LOAN
The scheme of reverse mortgage has been introduced for the benefit
of senior citizens owning a house but
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having inadequate income to meet their needs. Some important
features of reverse mortgage are: a) A homeowner who is above 60
years of age is eligible for reverse mortgage loan. It allows him
to turn the equity in his home into one lump sum or periodic
payments mutually agreed by the borrower and the banker. b) NO
REPAYMENT is required as long as the borrower lives, Borrower
should pay all taxes relating to the house and maintain the
property as his primary residence. c) The amount of loan is based
on several factors: borrowers age, value of the property, current
interest rates and the specific plan chosen. The valuation of the
residential property is done at periodic intervals and it shall be
clearly specified to the borrowers upfront. The banks shall have
the option to revise the periodic / lump sum amount at such
frequency or intervals based on revaluation of property.
Settlement--The loan shall become due and payable only when the
last surviving borrower dies or would like to sell the home, or
permanently moves out. On death of the home owner, the legal heirs
have the choice of keeping or selling the house. If they decide to
sell the house, the proceeds of the sale would be used to repay the
mortgage, with the remainder going to the heirs. As per the scheme
formulated by National Housing Bank (NHB), the maximum period of
the loan period is 15 years. The residual life of the property
should be at least 20 years. Where the borrower lives longer than
15 years, periodic payments will not be made by lender. However,
the borrower can continue to occupy. Other Banks which were
established- REGIONAL RURAL BANK (RRB): 1) REGIONAL RURAL BANK were
set up by an ordinance in 1975, later replaced by RRBs Act, 1976 as
pre Banking Commission recommendation in 1975. 2) Father of RRB is
M.Swaminathan. 3) The Govt. of India had appointed a Working Group
on rural Banks under the chairmanship of Mr. M. Narasimham in 1975.
First 5 RRBs were set up on 2 nd Oct.,
4) At the end of June 1985, 183 RRBS with the network of
10,245branches have opened in the states of the Indian union.. 5)
SHARE HOLDER CONTRIBUTION IN %: Government of India 50% Sponsor
Bank 35% State Government 15% Total 100%. EXIM BANK: The
Export-Import (EXIM) Bank of India is the principal financial
institution in India for coordinating the working of institution
engaged in financing export and import trade. It is a statutory
corporation wholly owned by the Government of India. It was
established on January 1, 1982 for the purpose of financing,
facilitating and promoting foreign trade of India. Capital: The
authorised capital of the EXIM Bank is Rs. 200 crore and paid up
capital is Rs. 100 crore, wholly subscribed by the Central
Government. SIDBI: The Small Industries Development Bank of India
(SIDBI) was established as a principal financial institution for
the promotion, financing and development of industries in the small
scale sector. SIDBI started its operations from 2 April 1990.
NATIONAL HOUSING BANK (NHB): 1) The National Housing Bank (NHB),
the apex institution of housing finance in India, was set up as
wholly owned subsidiary of the Reserve Bank of India. 2) The bank
started its operations from July 1988. 3) NHB is a subsidiary bank
of Reserve Bank of India. 4) National Housing Bank was established
under section 6 of National Housing Bank Act(1987). 5) The
headquarters of NHB is in New Delhi.
BASEL-3 NORMS The Basel Committee is the primary global
standard-setter for the prudential regulation of banks and provides
a forum for cooperation on banking supervisory matters. Its mandate
is to strengthen the regulation, supervision and practices of banks
worldwide with the purpose of enhancing financial stability. Stefan
Ingves, Governor of Sveriges
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Riksbank(SWEDEN), is the chairman CHAIRMAN of the Basel
Committee. Basel III Accord - Basel 3 Norms Basel III or Basel 3
released in December, 2010 is the third in the series of Basel
Accords. These accords deal with risk management aspects for the
banking sector. What does Basel III is all About ? According to
Basel Committee on Banking Supervision "Basel III is a
comprehensive set of reform measures, developed by the Basel
Committee on Banking Supervision, to strengthen the regulation,
supervision and risk management of the banking sector". What are
the objectives / aims of the Basel III measures ? Basel 3 measures
aim to: improve the banking sector's ability to absorb shocks
arising from financial and economic stress, whatever the source
improve risk management and governance strengthen banks'
transparency and disclosures. What are Three Pillars of Basel III
Norms? Pillar 1: Minimum Regulatory Capital Requirements based on
Risk Weighted Assets (RWAs) : Maintaining capital calculated
through credit, market and operational risk areas.(MAINLY THAT
CAPITAL WHICH CAN ABSORB RISK.) Pillar 2 : Supervisory Review
Process : Regulating tools and frameworks for dealing with
peripheral(OUTER) risks that banks face. Pillar 3: Market
Discipline : Increasing the disclosures that banks must provide to
increase the transparency of banks
What are the Major Features of Basel III ? (a) Better Capital
Quality : One of the key elements of Basel 3 is the introduction of
much stricter definition of capital. It means capital with the
higher loss-absorbing capacity. This in turn will mean that banks
will be stronger, allowing them to better withstand periods of
stress. (b) Capital Conservation Buffer: Another key feature of
Basel iii is that now banks will be required to hold a capital
conservation buffer of 2.5% of RWAs. CCB-aims to conserve the
capital of banks by making a buffer/reserve FOR CRISIS situation .
The aim of asking to build conservation buffer is to ensure that
banks maintain a cushion of capital that can be used to
absorb losses during periods of financial and economic stress.
(c) Countercyclical Buffer: The countercyclical buffer has been
introduced with the objective to increase capital requirements in
good times and decrease the same in bad times. The buffer will slow
banking activity when it overheats and will encourage lending when
times are tough i.e. in bad times. The buffer will range from 0% to
2.5% of RWAs, consisting of common equity/shares or other fully
loss-absorbing capital. (d) Minimum Common Equity and Tier 1
Capital Requirements : The minimum requirement for common equity,
the highest form of loss-absorbing capital, has been Minimum Common
Equity(the highest form of loss-absorbing capital) raised under
Basel III from 2% to 4.5% of total risk-weighted assets. The
overall Tier 1 capital requirement, consisting of not only common
equity but also other qualifying financial instruments, will also
increase from the current minimum of 4% to 6%. Although the minimum
total capital requirement will remain at the current 8% level. (e)
Leverage Ratio: A leverage ratio is the relative amount of capital
to total assets (not risk-weighted). This aims to put a cap on
swelling of leverage in the banking sector on a global basis. 3%
leverage ratio of Tier 1 will be tested before a mandatory leverage
ratio is introduced in January 2018. (f) Liquidity Ratios: Under
Basel III, a framework for liquidity risk management will be
created. A new Liquidity Coverage Ratio (LCR) and Net Stable
Funding Ratio (NSFR) are to be introduced in 2015 and 2018,
respectively. TAGLINES OF DIFFERENT BANKS 1. Allahabad Bank A
tradition of trust 2. Andhra bank For all your needs 3. Bank of
Baroda Indias international bank 4. Bank of India Relationships
beyond banking 5. Bank of Maharashtra One family one bank 6. Canara
Bank Together We Can 7. Central bank Central to you since 1911 8.
Dena Bank Trusted Family Bank 9. Indian Bank Taking banking
technology to the
common man 10. Oriental bank of Commerce Where every
individual is committed
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11. Punjab National Bank The name you can bank on
12. State bank of India With you all the way 13. Syndicate bank
Your faithful & friendly financial
partner 14. Vijaya Bank A friend you can bank on
RUPAY CARD a) RuPay is the Indian domestic card payment network
set up by National Payments Corporation of India (NPCI) at the
behest of banks in India. The RuPay project had been conceived by
Indian Banks Association (IBA) and had the approval of Reserve Bank
of India (RBI). b) National Payments Corporation of India (NPCI)
has a plan to provide a full range of card payment services
including the RuPay ATM, RuPay Micro-ATM, Debit, Prepaid and Credit
Cards which will be accepted in India and abroad, across various
channels like POS, Internet, IVR and mobile etc. c) All Public
Sector Undertakings (PSU) banks set to join RuPay system by the end
of year 2012. d) The government of India had launched Indias first
domestic payment card network, RuPay, to compete with Visa Inc and
Mastercard Inc. Objectives of RuPay: The Main Objective of the
RuPay payment network project is to reduce the overall transaction
cost and develop products appropriate for financial inclusion.
Headquarters of NATIONALIZED BANKS Allahabad Bank Kolkata Bank of
India Mumbai Bank of Maharashtra Pune Canara Bank Bangalore Central
Bank of India Mumbai Corporation Bank Mangalore Dena Bank Mumbai
Indian Bank Chennai
Indian Overseas Bank Chennai Oriental Bank of Commerce New Delhi
Punjab National Bank New Delhi Punjab & Sind Bank New Delhi
State Bank of India Mumbai Syndicate Bank Manipal UCO Bank Kolkata
Union Bank of India Mumbai United Bank of India Kolkata Vijaya Bank
Bangalore Andhra Bank Hyderabad
Bank of Baroda Vadodra
BANKING ABBREVIATIONS 1. PSBs: PUBLIC SECTOR BANKS 2. SNBCs:
SCHEDULE NON COMMERCIAL BANKS 3. SENSEX: SENSITIVE INDEX OF STOCK
EXCHANGE 4. GNP: GROSS NATIONAL PRODUCT 5. KYC: KNOW YOUR CUSTOMER
6. RTGS: REAL TIME GROSS SETTLEMENT 7. NEFT: NATIONAL ELECTRONIC
MONEY TRANSFER 8. EFT: ELECTRONIC FUND TRANSFER 9. CBS: CORE
BANKING SOLUTIONS 10. LIBOR: LONDON INTERBANK OFFERED RATE 11.
MIBOR: MUMBAI INTERBANK OFFERED RATE 12. MIBID: MUMBAI INTERBANK
BID RATE 13. SARFAESI: SECURITISATION AND
RECONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY
INTEREST
14. CAMELS: CAPITAL ADEQUECY RATIO, ASSET QUALITY, MANAGEMENT OF
EFFECTIVENESS, EARNING OF PROFITABILITY, LIQUIDITY, SYSTEM AND
CONTROLS
15. CAR: CAPITAL ADEQUECY RATIO 16. FIIs: FOREIGN INSTITUTIONAL
INVESTMENTS 17. FDI: FOREIGN DIRECT INVESTMENT 18. IPO: INITIAL
PUBLIC OFFERING 19. MICR: MAGNETIC INK CHARACTER READER 20. BIRD:
BANKERS INSTITUTE OF RURAL
DEVELOPMENT 21. IBA: INDIAN BANK ASSOCIATION 22. BPLR: BENCHMARK
PRIME LENDING RATE 23. ICICI: INDUSTRIAL CREDIT AND INVESTMENT
CORPORATION OF INDIA 24. HDFC: HOUSING DEVELOPMENT FINANCE
CORPORATION 25. IRDA: INSURANCE REGULATORY AND
DEVELOPMENT AUTHORITY 26. SWOT: STRENGETH, WEEKNESSES,
OPPORTUNITIES AND THREATS 27. SWIFT: SOCIETY FOR WORLDWIDE
INTERBANK
FINANCIAL TELECOMMUNICATION 28. FERA: FOREIGN EXCHANGE
REGULATORY ACT 29. FEMA: FOREIGN EXCHANGE MANAGEMENT ACT 30. CASA:
CURRENT AND SAVING ACCOUNT 31. NDTL: NET DEMAND & TIME
LIABILITIES 32. NASDAQ: NATIONAL ASSOCIATION FOR
SECURITIES DEALERS AUTOMATED QUOTATIONS 33. CIBIL: CREDIT
INFORMATION BUREAU OF INDIA
LIMITED 34. NAV: NET ASSET VALUE 35. ICRA: INDIAN CREDIT RATING
AGENCY
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36. CARE: CREDIT ANALYSIS AND RESEARCH LIMITED 37. WMAs: WAYS
AND MEANS ADVANCES 38. ALM: ASSET LIABILITY MANAGEMENT 39. INFINET
INDIAN FINANCIAL NETWORK CURRENT AFFAIRS CAPSULE FINANCIAL &
BANKING NEWS 1. RBI approves the merger of Kotak Mahindra-ING
Vysya. 2. Bharti AXA General Insurance launched Smart
Traveller. 3. Dena Bank on 6 April 2015 signed a Memorandum
of Understanding (MoU) with Life Insurance Corporation (LIC) of
India to provide insurance cover to all Aadhaar-linked savings
account holders of the bank in the age group of 18 to 50 years.
4. PM Narendra Modi launched the Rs 20,000 cr Micro Units
Development Refinance Agency (MUDRA) Bank and said , the aim of the
bank is to fund the unfunded small entrepreneurs and to strengthen
savings habit in the country.
5. IFCI Ltd has now become a state- owned firm with
the government increasing its stake in the infrastructure
financing firm to 51.04 per cent.
6. The Reserve Bank notified government's decision to raise
foreign direct investment (FDI) limit in the
insurance sector to 49 per cent from the present 26 percent.
7. IndusInd Bank entered into an agreement to acquire Royal Bank
of Scotland's Diamond & Jewellery Financing business in India
and related deposit portfolio.
8. ICICI Bank in collaboration with Tech Mahindra launched a
payment service Tap-n-Pay based on the near-field communications
(NFC) technology, enabling customers make over-the-counter payments
without using cash.
9. Bharatiya Mahila Bank Ltd has entered into MoUs with New
India Assurance Company Ltd and Life Insurance Corporation of India
to provide insurance cover to its accountholders.
10. RBI has modulated PSL norms which stipulate that banks
operating in India must offer 40% of all loans to farmers, small
entrepreneurs and so-called weaker sections of society.
11. Bank of India has partnered with insurance companies New
India Assurance Co and Star Union Dai-ichi Life Insurance to roll
out the governments social security insurance schemes.
12. Bank of Baroda, a leading Indian public sector bank, has
tied up with UAE Exchange to offer an instant cash transfer
facility to NRI customers.
13. Bharatiya Mahila Bank (BMB) has won The Asian Banker
Achievement Award 2015.
14. The government has raised the limit of foreign direct
investment in pension sector to 49 per cent in line with the FDI
cap in the insurance sector.
15. Corporation Bank and New India Assurance Company Ltd signed
a memorandum of understanding (MoU) for implementing Pradhan Mantri
Suraksha Bima Yojana [PMSBY], central government`s scheme to
provide security against personal accidental risk and permanent or
partial disability.
16. Insurance Australia Group (IAG) has decided to increase its
stake in State Bank of Indias general insurance arm to 49 per cent
from 26 per cent.
17. IndusInd Bank has agreed to buy Royal Bank of Scotlands
diamond and jewellery financing business in India.
18. Country's second largest private sector lender HDFC Bank
launched '30-min auto' and '15-min 2-wheeler' loan schemes, for
which customers have to provide only their biometric details.
19. Private insurer Bajaj Allianz has launched a weather-based
crop insurance scheme for orange
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crops in Nagpur, Hingoli and Washim districts of
Maharashtra.
20. Government is likely to infuse additional USD 1.8 billion
(about Rs 11,500 crore) in public sector banks this fiscal.
21. HDFC Securities, a subsidiary of HDFC BankBSE -0.23 % has
launched its mobile trading app in 11 different regional
languages.
22. The Reserve Bank of India (RBI) has extended the date to
exchange pre-2005 bank notes till December 31, 2015 for third
time.
23. Export-Import (Exim) Bank has extended a line of credit of
$268.35 million to Tanzania for financing extension of Lake
Victoria pipeline.
24. The Reserve Bank of India (RBI) issued the final guidelines
for the 6-year and 13-year cash settled Interest Rate Futures (IRF)
on government securities with residual maturity of 4-8 years and
11-15 years respectively under the Interest Rate Futures.
25. To help investors and companies in IPOs, SEBI halved the
listing time to six days from the date of the public offer and also
allowed a larger number of firms to tap the fasttrack route for
raising funds.
26. India Brand Equity Foundation (IBEF) in the third week of
June 2015 released a report on Intellectual Property Rights (IPRs)
filing in India during 2013-14. While Maharashtra topped the list
of states and Union Territories (UTs), Bengaluru was the top city
in IPR filing.
27. Odisha State Co-op Bank launches Bank on Wheels.
28. The stock of Kaveri Seed Company will see some buying
interest as the Reserve Bank of India said foreign portfolio
investors could now invest up to 49 per cent of the companys equity
base.
29. Bills for postpaid mobile service, piped gas and water
supply can now be submitted as proof of address for opening account
with banks or other financial institutions.
30. Service tax increased to 14%. 31. RBI lowers repo rate to
7.25 per cent. 32. Non-repatriable investments by NRIs, OCIs
and
PIOs will be treated as domestic investments and will not be
subject to foreign direct investment caps.
33. EPFO to invest 5% of funds in equity market. 34. The Reserve
Bank of India (RBI) has permitted
banks to take control of 51 percent of stake in a company that
has failed to recover financial health
even after a period of financial restructuring, typically due to
management inefficiency or other factors.
35. ICICI Bank Appoints MK Sharma As Non-Executive Chairman.
36. The Reserve Bank of India (RBI) said that Indian corporates,
eligible to raise external commercial borrowings (ECBs), are
permitted to issue rupee- linked bonds overseas.
37. Reserve Bank of Indian has allowed non-resident Indians
(NRIs) to invest in chit fund to encourage flow of capital into the
country.
38. The Insurance Regulatory and Development Authority of India
(IRDAI) has imposed a penalty of 50 lakh on Future Generali Life
Insurance Company.
39. State Bank of India (SBI), the countrys largest bank, has
launched SBI eforex, an Internet-based platform that enables
customers to book their foreign exchange transactions online.
40. Canara Bank has entered into a memorandum of understanding
with Life Insurance Corporation of India for offering the Pradhan
Mantri Jeevan Jyoti Bima Yojanainsurance cover to all its eligible
customers.
41. An extremely simplified income tax return form will soon
replace the controversial 14-page ITR that sought information like
all bank accounts and foreign trip details.As it stands, the new
ITR forms, including the ITR-1 and ITR-2, require an assessee to
furnish the number of bank accounts held by the individual.
42. MoneyGram Ready to Handle Electronic-Mode Remittances in
India.
43. The RBI put in place a new framework to check loan fraud
including by way of early warning signals at banks and red flagging
of accounts, while swindlers will have no access to further banking
finance.
44. The Centre's new appointment norms for public sector bank
chiefs capping the age at 55 years and mandatory three-year board
level experience has come under judicial scrutiny with the Supreme
Court.
45. Axis Bank, the country's third largest private sector bank
now facilitates instant transfer of money on various social media
channels like Whatsapp, Facebook, Twitter, Email list and phone
contact list.
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46. KV Kamath appointed BRICS bank president. 47. State Bank of
India joined its private sector rivals
to launch contactless cards using latest near field technology
(NFC).
48. In a move that will promote 'tap and pay' electronic
payments, the Reserve Bank of India (RBI) said that bank can allow
customers to transact with contactless card upto Rs 2000 without
customers punching a separate PIN for authentication.
49. Arun Shrivastava assumed charge as Managing Director &
CEO of Syndicate Bank.
50. Top private sector lender ICICI Bank opened its first branch
in China, which was inaugurated by Prime Minister Narendra
Modi.
51. HDFC Bank has launched 'HDFC Bank Apollo Medical Benefits
Card'.
52. As part of Make in India, Finance Minister Arun Jaitely
inaugurates Indigenous New Bank Note printing lines at Security
Paper Mill in Hoshangabad.
53. ICICI Launches Voice Password Facility for Phone
Banking.
54. State-run Corporation Bank cut base rate or minimum lending
rate by 0.25 percentage point to 10 per cent, a move which will
lead to lower EMIs for its customers.
55. Micro Units Development Refinance Agency (MUDRA) Bank has
partnered with 19 state and regional level coordinators to reach
those small entrepreneurs who are often cut off from the banking
system because of a limited branch presence.
56. State-run lender Bank of India tied up with MasterCard to
launch three new cards and also two new banking solutions for its
card holders.
57. Aiming to attract overseas funds, government decided that
non-repatriable investments by NRIs, OCIs and PIOs will be treated
as domestic investments and will not be subject to foreign direct
investment caps.
58. The country's largest bank announced a partnership with
digital payments firm, PayPal so that the Customers of State Bank
of India (SBI) can now use their debit cards on PayPal for buying
products from overseas websites.
59. Markets regulator SEBI simplified norms for domestic mutual
funds to manage offshore pooled assets, dropping its "20-25 rule"
which requires a minimum of 20 investors and a cap of 25 percent on
investment by an individual, for funds from low-risk foreign
investors.
60. IDBI Bank has decided to roll out e-huts to connect with the
rural populace.
INDIA GDP FORECAST 1. The World Bank has predicted a GDP growth
rate of
8 per cent for India by 2017 and said that a strong expansion in
the country, coupled with favourable oil prices.
2. Moodys, a global ratings agency, raised Indias rating outlook
to positive from stable, but retained the Baa3 rating.
3. India's economic growth is projected to surpass that of
China's, with the GDP expected to zoom by 7.7 per cent in 2016,
according to a UN report.
4. The Asian Development Bank projected India's growth rate to
surpass China and improve to 7.8 per cent in next fiscal and
further to 8.2 per cent in 2016-17.
5. India pegs 2014-15 GDP growth at 7.4 per cent
6. Indias growth to reach 6.3 per cent in 2016:United Nations
World Economic Situation and Prospects (WESP)
7. International Monetary Fund (IMF) projected that India will
grow 6.5 per cent in 2016, overtaking China which, it projected,
will slowdown to 6.3 per cent.
8. Fitch expects real GDP growth to pick up to 8 per cent in
FY16 and 8.3 per cent in FY17.
9. IMF projected GDP growth for India in 2014-15 at - 5.6 %
& 6.4 % in 2015
India ranking in different Indexes: 1. India ranks 119 on 2015
FM Global Resilience
Index. 2. India ranked 143rd in Global Peace Index.
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3. India is home to the highest number of hungry people in the
world, at 194 million, surpassing China, according to United
Nations annual hunger report.
4. Indias consumer confidence score rose to 130 followed by
Indonesia (123) and Philippines (115).
5. India has emerged as the second-most trusted country in the
world in terms of faith reposed on its institutions. The list is
topped by UAE with 84 per cent trust.
6. Transparency International India (TII) Corruption Index India
ranked 85th among 175(Denmark topped)
7. World Bank - Ease of Doing Business" report - India ranked
142 among the 189 countries (Singapore top)
8. World Economic Forum's 2015 Gender gap index 114 (Iceland top
the list followed by Finland & Norway)
9. Global Hunger Index Report 2014: 55 (Mauritius top followed
by Thailand and Albania)
10. Human Development Index 2014 135 (Norway top followed by
Australia).
11. Intellectual property (IP) environment 2015 29 (US ranked on
the top, Thiland last)
12. World Press Freedom Index 2015 - 136 in the list of 180
countries
13. World's best countries for doing business 2014 134
14. Global Peace Index 2014 143 (Iceland top the list while
Syria the most violent place)
15. Global Innovation Index 2014 - 76
16. Global Competitiveness Index 2014 -71 (Switzerland is the
most competitive economy, followed by Singapore).
Important Committees in News: 1. Bibek Debroy Committee on
restructuring of Indian
Railways. 2. The government has set up a high level panel,
headed by former Home Secretary Anil Baijal to suggest a
framework to assess CSR activities done by corporates under the
companies law.
3. Union Finance Ministry constituted High Level Committee to
interact with trade and industry to give recommendations to the
Central Board of Direct Taxes (CBDT) and the Central Board of
Excise and Customs (CBEC) for issuance of appropriate
clarifications by way of circulars, on tax-related issues on a
regular basis. The high
level committee will be headed by former Chief Economic Advisor
(CEA) Ashok Lahiri.
4. TSR Subramaniam Committee: to review the processes, laws and
Acts of the Ministry of Environment, Forests and Climate Change
5. Pratyush Sinha committee: to assess compensation for coal
blocks.
6. The former Union Minister Jairam Ramesh designated as the
head of Future Earth Engagement Committee, a global research
platform panel on sustainable development.
7. T.K. Vishwanathan committee: to provide Bankruptcy code for
small and medium enterprises (SMEs).
8. Justice Prabha Sridevan committee: to function as a
think-tank to help draft a new National Intellectual Property
Rights Policy (National IPR Policy)
9. K.V. Kamath panel: to examine the financial architecture for
Micro, Small and Medium Enterprises (MSME) sector.
10. Gopalakrishna Committee: on Capacity Building in Banks and
non-Banks
11. G N Bajpai Committee: to review the investment guidelines
for national pension system (NPS) schemes in private sector.
12. Scientist Raghunath Anant Mashelkar panel: to recommend best
technologies for Prime Minister Narendra Modi's "Swachh Bharat"
national sanitation campaign.
13. T S R Subramanian Committee: to review five key green laws
concerning protection and conservation of environment, forest,
wildlife, water and air among others.
14. H R Khan Committee: to examine the un-claimed amount in PPF,
Post Office and Savings Schemes.
15. H Devaraj Committee: reported that most of the deemed
universities are not fit for being a university.
16. Sivaramakrishnan Committee: to suggest the place to build
the capital city of Andhra Prades
17. Former RBI Governor Bimal Jalan to head the Expenditure
Management Commission. The purpose of setting up the commission is
to cut-off the spending and review government expenditure to get
maximum output.
18. Justice CS Dharmadhikari Committee: recommended complete ban
on dance bars in hotels and restaurants.
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19. R. Ramanujam Committee - to review, identify and recommend
amendment in obsolete laws to further smoothen and simplify the
governance.
Important News (India & World): 1. A massive 7.9-magnitude
earthquake struck east of
Pokhara in Nepal, causing widespread damage to buildings in the
capital Kathmandu.
2. China has hosted the signing ceremony of the Asian
Infrastructure Investment Bank (AIIB), a new international
financial institution set to rival the World Bank and Asian
Development Bank.
3. A ranking of destinations for attractiveness to foreign
investors has placed India at the top among 110 countries. China
has secured the 65th position and the U.S.
4. As per recently released report by British Petroleum (BP)
Energy Company, United States (US) became the worlds largest oil
producer in 2014 surpassing Saudi Arabia.
5. Minister of State (MoS) for External Affairs V K Singh
inaugurated first India-China Yoga College at Yunnan Minzu
University in Kunming, China.
6. India leads regional inflow of Foreign Direct Investment
(FDI) in South Asia accounting for $34 billion investment during
2014 and the upward trend is likely to continue this year also,
according to a UN report which placed China as the world's largest
FDI recipient.
7. India has emerged as the third largest Foreign Direct
Investment (FDI) source for United Kingdom (UK) in 2014-15.
8. India has set two Guinness world records (GWR) in Rajpath
yoga event held on the eve of first International Yoga Day led by
Prime Minister Narendra Modi. First record is the largest number of
participants- 35,985 people had participated in largest yoga
demonstration at a single venue i.e. Rajpath yoga event.
9. China launched a freight train service between its
northeastern city of Harbin and Europe, opening a new trade route
to Europe covering a distance of nearly 10,000 kms.
10. The Senate passed the USA Freedom Act, marking the first
time in over thirty years that both houses of Congress have
approved a bill placing real restrictions and oversight on the
National Security Agencys surveillance powers.
11. 26 African countries create TFTA (The Tripartite Free Trade
Area): Cape Town to Cairo free-trade
zone that facilitates creation of Africas largest free-trade
zone.
12. Seychelles becomes 161st member of World Trade
Organisation.
13. David Cameron has returned to Downing Street with the Tories
having defied polls and won the general election.
14. President Pranab Mukherjee, on his visit to Russia, has
inaugurated a festival of Indian Culture 'Namaste Russia' in
Moscow.
15. China overtook the United States as the world's top importer
of crude oil for the first time in April 2015.
16. A major earthquake has struck eastern Nepal, near Mount
Everest, two weeks after more than 8,000 died in a devastating
quake.
17. Prime Minister Narendra Modi announced that India will grant
e-visas to Chinese tourists.
18. Minister of State for Information and Broadcasting
Rajyavardhan Singh Rathore inaugurated the India Pavilion at the
68th Cannes International Film Festival.
19. Brushing aside objections, Prime Minister Narendra Modi
announced granting of e-visa (electronic visa also called visa on
arrival) facility to the Chinese nationals in Beijing.
20. India announced a US$ one billion credit line to Mongolia
for infrastructure development as they upgraded their ties to
Strategic Partnership and agreed to deepen defense cooperation
besides exploring potential for tie ups in areas like the civil
nuclear sector.
21. Prime Minister Narendra Modi and Bangladesh premier Sheikh
Hasina will jointly inaugurate a border 'haat' (market) at
Kamalasagar in Tripura's Sipahijala district, which borders
Brahmanbaria district of Bangladesh.
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Important News States 1. Odisha Government launches Aahar
scheme. 2. Andhra Pradesh Cabinet approved Amaravathi as
capital of the State. 3. Punjab Government launches Padho
Punjab- Khedo
Punjab Mission. 4. The BJP government in Haryana has decided to
give
the status of cabinet minister to yoga guru Ramdev, who was
earlier made the states brand ambassador to promote yoga and
ayurveda.
5. The Kerala government launched a major campaign "Subodham" to
help people in the state overcome alcohol, drug and other substance
abuse.
6. The Delhi government gave approval for the setting up of a
farmer compensation scheme to be named after Gajender Singh, who
allegedly committed suicide during an AAP rally on April 22.
7. West Bengal Chief Minister Mamata Banerjee declared Nadia as
the first Open Defecation Free (ODF) district in the country.
8. Nadia district in West Bengal has won the United Nations
Public Service Award 2015 in the category of improving delivery of
public services for or eliminating open defecation in the
district.
9. First phase of Chennai Metro service was inaugurated by Tamil
Nadu Chief Minister J Jayalalithaa after she flagged off inaugural
train.
10. Tennis legend Steffi Graf was appointed the Ayurveda brand
ambassador of Kerala.
11. Indian Railways names Haridwar Mail as Yoga Express.
12. The Andhra Pradesh government has launched `Mee Bhoomi', a
digital depository of land records.The portal,
http://meebhoomi.ap.gov.in/, makes all land details along with
Adangal/Pahani and 1-B details, available to the people.
13. Tamil Nadu chief minister J Jayalalithaa announced a
financial aid of Rs 41 crore for farmers in the Cauvery delta
region to improve the kuruvai cultivation (short-term
cultivation).
14. Essel, Rajasthan government ink Rs 4k crore pact for solar
parks.
15. Mahindra World City Jaipur (MWCJ), spread across 3,000 acres
on the Delhi-Mumbai corridor, has become the first project in Asia
and sixth in the world to commit to a carbon-positive road map as
part of the C40 Cities Climate Leadership Group.
16. Chief Minister N. Chandrababu Naidu and his wife
Bhuvaneswari performed bhoomi pooja for the new capital Amaravati
at Mandadam village in Guntur district.
17. Kapil Mishra to Succeed Jitender Tomar as Delhi's Law
Minister.
18. In Haryana's Bibipur village, contest of selfies with
daughter to save girl child was organised.
19. In a bid to make Arunachal Pradesh a hundred per cent
organic state, the State government decided to launch State Soil
Health Mission.The programme aims at proper documentation of soil
health and preparation of soil map.
20. Jitan Ram Manjhi announces new party as Hindustani Awam
Morcha (HAM).
21. MoUs worth Rs 24,000 cr signed during PM Narendra Modi's
visit to Chattisgarh.
22. Punjab becomes first state to issue Soil Health Cards to
farmers. Union Ministry of Human Resource Development (MHRD) gave
an in-principle approval for setting up an IIIT (Indian Institute
of Information Technology) in Nagpur, Maharashtra. It will be the
first IIIT to be set up in the state.
23. Mega Food Park Inaugurated at Nalbari, Assam.
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New Appointment in India 1. Gulshan Rai takes charge as Indias
first cyber
security chief. 2. K.N. Tripathi sworn in as Governor of
Mizoram. 3. Mayilsamy Annadurai appointed as Director of ISRO
Satellite Centre (ISAC). 4. President Pranab Mukherjee has
appointed the
senior-most Election Commissioner, Dr Nasim Zaidi, as the next
Chief Election Commissioner (CEC).
5. Sumit Mazumder, Chairman & Managing Director, TIL
Limited, has been elected as the President of CII for the year
2015-16. He succeeds Mr Ajay Shriram as the new President.
6. Arun Kumar Jha was appointed as Chief Executive Officer of
Khadi and Village Industries Commission (KVIC), Mumbai.
7. Meenakshi Madan Rai sworn in as the first lady judge of the
Sikkim High Court. Her oath of the office was administered by the
Governor Srinivas Patil at Ashirwad Hall at Raj Bhavan in
Gangtok.
8. Senior diplomat Mohan Kumar, c