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1
Q

CLASSIFICATION OF
BANKS

A

2

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2
Q

RBI

A

3

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3
Q

FUNCTIONS OF RBI

A

4

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4
Q

What is written on ! rupee note

A

5

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5
Q

Who signs 1 rupee note

A

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6
Q

What is written on other notes and who signs it?

A

6

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7
Q

Scheduled banks

A

Those banks which have been included in the Second
Schedule of Reserve Bank of India Act, 1934.
 Conditions to be fulfilled ->
1. A total of Rs. 5 lakh in paid-up capital and reserves are
needed.
2. The bank must demonstrate to the central bank that its
operations do not jeopardize depositors’ interests.
3. The bank must be a company, not a single owner or
partnership company.

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8
Q

Foreign banks

A

Banks are established in foreign countries
and have branches in other countries.

American Express Bank, HSBC, Standard &
Chartered Bank,

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9
Q

Commercial bank and How they make profit??

A

Financial institution which accepts deposits
from the public and gives loans for the
purposes of consumption and investment
to make profit.

How they make profit??

They accept deposit at a lower rate and
lend at a higher rate .

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10
Q

Public sector bank

A

It is a type of bank that is nationalised, and the
government holds a significant stake.

Bank of Baroda, State Bank of India (SBI), Dena Bank, Corporation Bank, and Punjab National
Bank.

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11
Q

Private sector bank

A

It is a type of commercial banks where private
individuals and businesses own a majority of the share capital.

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12
Q

Scheduled public sector banks in
India as on June 19,2022

A

12

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13
Q

Scheduled private sector banks in
India as on June 9,2021

A

13

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14
Q

Bancassurance

A

Selling insurance products through banks .
 ICICI prudential
 SBI LIFE

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15
Q

Deposits

A

Fixed deposits (FD)- fixed amount for a fixed period
Savings deposits/ accounts- any amount at any time
Current deposits/accounts – ( over draft facility)
Recurring deposit (RD) – fixed amount at regular
intervals for a fixed term

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16
Q

Demat account

A

A demat account/ De materialization
account is an account to hold financial
securities (shares, bonds etc) in
electronic form.

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17
Q

Demat account

A

A demat account/ De materialization
account is an account to hold financial
securities (shares, bonds etc) in
electronic form.

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18
Q

Micro finance

A

Microfinance is a category of financial services
targeting individuals and small businesses who lack access to conventional banking and related services.

 Pioneered by the Nobel Prize winner
Muhammad Yunus

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19
Q

Cheques

A

A cheque, is a document that orders a bank to
pay a specific amount of money from a person’s
account to the person in whose name the cheque
has been issued.
 The person writing the cheque, known as the
drawer,
One who pays- drawee
To whom the amount is paid- payee

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20
Q

Cheques content

A

19

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21
Q

IFSC

A

IFSC stands for Indian Financial System Code. It is a 11-digit alpha-numeric code that uniquely identifies a bank

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22
Q

MICR

A

A technology used primarily to identify and process cheques.
 string of characters that appears at the bottom left of the
cheques.
(magnetic ink character recognition)
pg 21

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23
Q

Stale Cheques

A

A cheque which is presented before the bank
after 3 months from the date mentioned on it

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24
Q

Post dated cheq

A

Are those dated in such a form that they
can only be cashed in in the future.

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25
Crossing of a cheque
A crossed cheque is any cheque that is crossed with two parallel lines, either across the whole check or through the top left-hand corner of the cheque.  This double-line signifies that the check may only be deposited directly into a bank account  . Therefore, such cheques cannot be immediately cashed by a bank or by any other credit institution. pg 24
26
Demand draft (DD)
A DD is a cash instrument used by an individual to make a transfer payment from one bank account to another.
27
Online banking or Internet Banking
doing banking transactions with the help of internet
28
NEFT
 National Electronic Funds Transfer  A payment system that enables electronic transfer of funds from one bank to another bank account.  It is an online system for transferring funds from one financial institution to another within India usually the banks MINIMUM 1 rupee MAXIMUM LIMIT none
29
RTGS
RTGS is a funds transfer system where money is moved from one bank to another in ‘real-time’, and on gross basis.  2 LAKS TO ANY AMOUNT
30
IMPS
Immediate Payment Service Immediate Payment Service (IMPS) is an instant interbank electronic fund transfer service through mobile phones. pg 31
31
Card payment system
Card-based payments are made by using a credit card or a debit card
32
DEBIT CARD
Used to withdraw or use cash up to the limit present investors bank a/c.(Your ATM CARD)
33
 CREDIT CARD
Customer can withdraw/use more than what is deposited in the account . Excess withdrawal will be treated as a loan.
34
NPA
NON PERFORMING ASSSET  Any advance or loan that is overdue for more than 90 days.  “An asset becomes non-performing when it ceases to generate income for the bank,”
35
Classification of NPAs
1. Substandard assets: Assets which has remained NPA for a period less than or equal to 12 months. 2. Doubtful assets: An asset would be classified as doubtful if it has remained in the substandard category for a period of 12 months. 3. Loss assets: irrecoverable assets
36
REPO – RE Purchase Order
 In India, repo rate is the rate at which Reserve Bank of India lends money to commercial banks in India if they face a scarcity of funds.  Reverse Repo rate is the rate at which the Reserve Bank of India borrows funds from the commercial banks in the country
37
CRR
The percentage of cash required to be kept in reserves, vis-a-vis a bank’s total deposits, is called the Cash Reserve Ratio.
38
SLR
Statutory Liquidity Ratio  is a minimum percentage of deposits that a commercial bank has to maintain in the form of liquid cash, gold or other securities.
39
MSF
Marginal Standing Facility (MSF) Rate is the rate at which RBI lends funds overnight to scheduled banks, against government securitie
40
Current rates
CRR 4.5% SLR 18% Standing Deposit Facility Rate: 6.25% Policy Repo Rate6.50% Marginal Standing Facility Rate: 6.75% Bank Rate: 6.75% Fixed Reverse Repo Rate: 3.35% Rbi website pg 41
41
Why CRR and SLR?
To control inflation by controlling the liquidity of banks.
42
Recent Acquisitions /mergers
Bank of Baroda acquired Vijaya Bank and Dena Bank; Punjab National Bank acquired Oriental Bank of Commerce and United Bank of India. Union Bank of India acquired Andhra Bank and Corporation Bank. Syndicate Bank was merged with Canara Bank Indian Bank merged Allahabad Bank with itself. pg 42
43
SWIFT
Society for Worldwide Interbank Financial Telecommunication a global network connecting banks to communicate messages about activities like money transfer safely and securely, using a code.
44
ATM
Automated Teller Machine
45
 CDM
Cash Deposit Machine
46
CAMEL
- is an international rating system used by regulatory banking authorities to rate financial institutions Capital Adequacy, Asset Quality, Management, Earnings and Liquidity
47
NRI
Non Resident Indian
48
NRE
Non Resident External a/c
49
NRO
Non Resident ordinary a/c
50
NRE v/s NRO
pg 45
51
Pay day loan
A relatively small amount of money lent at a high rate of interest on the agreement that it will be repaid when the borrower receives their next wages.
52
Line of Credit
A line of credit is a flexible loan from a bank or financial institution.  Almost equal to credit card that offers you a limited amount of funds—funds that you can use when, if, and how you wish—  It is an amount of money that you can access as needed and then repay immediately or over a prespecified period of time.
53
Financial market
Financial markets facilitate the interaction between those who need capital with those who have capital to invest. All the facilities to satisfy the financial requirements of firms  Financial market = money market + Capital market  Money market  RBI  Capital market SEBI  Capital market = primary market + Secondary Market(Stock Market)
54
BSE- SENSEX
Sensex is the benchmark index of the BSE in India.  It was launched on January 1, 1986 as a basket of 30 stocks representing the country's largest, financiallysound companies listed on the BSE.  The term 'Sensex' is a blend of words 'Sensitive' and 'Index' and was coined by stock market expert Deepak Mohini.
55
NSE
NIFTY indices are used as benchmarks for products traded on NSE.  derivation from the mix of two words, i.e. “National Stock Exchange” and “fifty”.  It is an abbreviation of the National Stock Exchange Fifty.  It is a collection of top performing 50 equity stocks that are actively trading in the index.
56
Economics systems
 Capitalism  Socialism  Mixed economy
57
Capitalism
An economic system in which private actors own and control property in accord with their interests,  demand and supply freely set prices in markets in a way that can serve the best interests of society.  The essential feature of capitalism is the motive to make a profit. 53
58
Socialist economy
55
59
Mixed economy
56
60
GDP =Gross Domestic Product
economic indicator that reflects the monetary value of goods (from food products to vehicles, machinery and textiles) and services (such as health care, education, etc.) produced in the country over a certain period of time
61
Per capita income
60
62
FISCAL POLICY v/s ECONOMIC POLICY
Fiscal policy refers to the use of government spending and tax policies to influence economic conditions.  Policies of central bank of the country to control economic condition
63
Inflation
Inflation is defined as the increase in the price levels of goods and services in an economy
64
Recession
 Recession is said to be a period of slowing down of the economy indicated by negative growth. Recession is measured by the reduction in the Gross Domestic Product of a nation

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