7/21/2019 Www.newstechcafe.com Ibps Po Interview Capsule 2015-16 http://slidepdf.com/reader/full/wwwnewstechcafecom-ibps-po-interview-capsule-2015-16 1/14 I BPS PO I nterview Booster for 2015-16 http://newstechcafe.comLike Us on Facebook http://facebook.com/technologytok Page 1 1. What is IPO ? Initial Public Offering. The first sale of stock by a company to the public. Companies offering an IPO are sometimes new, young companies, or sometimes companies which have been around for many years but are finally deciding to go public. IPOs are often risky investments, but often have the potential for significant gains. IPOs are often used as a way for a young company to gain necessary market capital. 2. What is LAF ? Liquidity adjustment facility (LAF) is a monetary policy tool which allows bank s to borrow money through repurchase agreements. LAF is used to aid banks in adjusting the day to day mismatches in liquidity. LAF consists of repo and reverse repo operations 3. What is FII ? DEFINITION of 'Foreign Institutional Investor - FII' An investor or investment fund that is from or registered in a country outside of the one in which it is currently investing. Institutional investors include hedge funds, insurance companies, pension funds and mutual funds. 4. What is ECGC? Export Credit Guarantee Corporation of India Ltd. ( ECGC ) 5. What is CASA? The CASA (current and savings account) ratio is the ratio of deposits in the current and savings accounts of a bank to its total deposits. A high CASA ratio indicates that a higher portion of the banks deposits come from current and savings accounts.
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7/21/2019 Www.newstechcafe.com Ibps Po Interview Capsule 2015-16
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27. What is SLR? Why RBI uses it?
Statutory liquidity ratio (SLR) is the Indian government term for reserve requirement that the
commercial banks in India require to maintain in the form of gold or government approved securities
before providing credit to the customers. Statutory Liquidity Ratio is determined and maintained by
Reserve Bank of India in order to control the expansion of bank credit.
The SLR is determined as a percentage of total demand and time liabilities. Time Liabilities refer to the
liabilities which the commercial banks are liable to pay to the customers after a certain period mutually
agreed upon, and demand liabilities are such deposits of the customers which are payable on demand.
An example of time liability is a six month fixed deposit which is not payable on demand but only after
six months. An example of demand liability is a deposit maintained in saving account or current accountthat is payable on demand through a withdrawal form such as a cheque.
The SLR is commonly used to contain inflation and fuel growth, by increasing or decreasing it
respectively. This counter acts by decreasing or increasing the money supply in the system respectively.
Indian banks’ holdings of government securities are now close to the statutory minimum that banks are
required to hold to comply with existing regulation. When measured in rupees, such holdings decreased
for the first time in a little less than 40 years (since the nationalisation of banks in 1969) in 2005 –06.
The main objectives for maintaining the SLR ratio are the following:
• to control the expansion of bank credit. By changing the level of SLR, the Reserve Bank of Indiacan increase or decrease bank credit expansion.
• to ensure the solvency of commercial banks.
• to compel the commercial banks to invest in government securities like government bonds.
28. Who does open a Demat account?
The benefits of demat are enumerated[by whom?] as follows:
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We acknowledge that a generally accepted definition of “Social Banking” does not exist, and – given the
variety of its historic origins and underlying values – arguably cannot exist. But we believe that there is a
common denominator of many organisations that can be subsumed under this notion of social banking,which we define as follows:
Core objective and maxims
“Social Banking“ describes the provision of banking and financial services that consequently pursue, as
their main objective, a positive contribution to the potential of all human beings to develop, today and
in the future.
In Social Banking, the focus is on satisfying existing needs in the real economy and the society whilst
simultaneously taking into account their social, cultural, ecological and economic sustainability.
Furthering the common good by generating multiple returns with respect to these aspects is at its core.
Generating a monetary profit is not an end but a frequent prerequisite to guaranteeing the necessary
flexibility for pursuing its objective in a continuously changing environment.
Social Banking is always conscious of its responsibility in dealing with money as a formative medium. It
understands money, banking and finance as means that are conceived and that can be further
developed by humans to achieve its objective.
Social Banking describes a process, not a steady state. It is about jointly identifying and testing creative
new ways to come close to the above-described objective. This involves multiple aspects and demands,which are sometimes conflicting and often necessitate compromise. Therefore, Social Banking depends
on an on-going and constructive dialogue of the people involved in and affected by its activities, as well
as on a continuous reflection of their respective motives (why?), actions (what?) and approaches
(how?). This requires the willingness and capacity to develop on both an individual and an institutional
level.
Common characteristics
Characteristics of many such understood Social Banking organisations are (in alphabetic order) for
instance
• Catalogue of socially, culturally, ecologically and ethically oriented negative criteria to prevent
unsustainable ways of living and doing business that do not foster the common good,
• Catalogue of socially, culturally, ecologically and ethically oriented positive criteria to support
sustainable ways of living and doing business that do foster the common good,
• Contestation of the values underlying its activities,
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credit cards, and traditional currency), including terrorism financing, tax evasion and evading of
international sanctions. Most anti-money laundering laws openly conflate money laundering (which is
concerned with source of funds) with terrorism financing (which is concerned with destination of funds)
when regulating the financial system.
36. What is Deficit Financing?
government funding of spending by borrowing.
1. The method used by a government to finance its budget deficit, that is, to cover the difference
between its tax receipts and its expenditures. The main choices are to issue bonds or to print money.
2. The assumption that a change in government spending or taxes will be financed by a change in thegovernment budget deficit, rather than by an accommodating additional change in spending or taxes to
keep the budget balanced. Example: a "deficit-financed increase in government purchases."
37. What is 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, in contrast to financial exclusion wherethose services are not available or affordable.
38. What is CTS? How it works?
Cheque Truncation System (CTS) or Image-based Clearing System (ICS), in India, is a project undertaken
by the Reserve Bank of India – RBI, for faster clearing of cheques.[1] CTS is basically an online image-
based cheque clearing system where cheque images and Magnetic Ink Character Recognition (MICR)
data are captured at the collecting bank branch and transmitted electronically.
Truncation means, stopping the flow of the physical cheques issued by a drawer to the drawee branch.
The physical instrument is truncated at some point en route to the drawee branch and an electronic
image of the cheque is sent to the drawee branch along with the relevant information like the MICR
fields, date of presentation, presenting banks etc.