Professional Documents
Culture Documents
For
Clerks and officers in banks
e-book
(Banking Awareness)
Prepared by www.Expertmasterji.com
www.fb.com/perfectguideforbanking
www.Expertmasterji.com
www.Expertmasterji.com
6. What is Inflation?
A: Inflation is as an increase in the price of bunch of Goods and services that
projects the Indian economy. An increase in inflation figures occurs when there is
an increase in the average level of prices in Goods and services. Inflation happens
when there are fewer Goods and more buyers; this will result in increase in the
price of Goods, since there is more demand and less supply of the goods.
7. What is Deflation?
A: Deflation is the continuous decrease in prices of goods and services. Deflation
occurs when the inflation rate becomes negative (below zero) and stays there for a
longer period.
8. What is PLR?
A: The Prime Interest Rate is the interest rate charged by banks to their most
creditworthy customers (usually the most prominent and stable business
customers). The rate is almost always the same amongst major banks. Adjustments
to the prime rate are made by banks at the same time; although, the prime rate does
not adjust on any regular basis. The Prime Rate is usually adjusted at the same time
and in correlation to the adjustments of the Fed Funds Rate. The rates reported
below are based upon the prime rates on the first day of each respective month.
Some banks use the name "Reference Rate" or "Base Lending Rate" to refer to
their Prime Lending Rate.
9. What is Deposit Rate?
A: Interest Rates paid by a depository institution on the cash on deposit.
10. What is FII?
A: FII (Foreign Institutional Investor) used to denote an investor, mostly in the
form of an institution. An institution established outside India, which proposes to
invest in Indian market, in other words buying Indian stocks. FII's generally buy in
large volumes which has an impact on the stock markets. Institutional Investors
includes pension funds, mutual funds, Insurance Companies, Banks, etc.
www.Expertmasterji.com
www.Expertmasterji.com
www.Expertmasterji.com
Functions of RBI?
The Reserve Bank of India is the central bank of India, was established on April 1,
1935 in accordance with the provisions of the Reserve Bank of India Act, 1934.
The Reserve Bank of India was set up on the recommendations of the Hilton
Young Commission. The commission submitted its report in the year 1926, though
the bank was not set up for nine years.To regulate the issue of Bank Notes and
keeping of reserves with a view to securing monetary stability in India and
generally to operate the currency and credit system of the country to its
advantage." Banker to the Government: performs merchant banking function for
the central and the state governments; also acts as their banker.Banker to banks:
maintains banking accounts of all scheduled banks.
www.Expertmasterji.com
www.Expertmasterji.com
The credit rating agencies in India mainly include ICRA and CRISIL. ICRA
wasformerly referred to the Investment Information and Credit Rating Agency of
India Limited. Their main function is to grade the different sector and companies
in terms of performance and offer solutions for up gradation. The credit rating
agencies in India mainly include ICRA and CRISIL(Credit Rating Information
Services of India Limited)
What is Cheque?
Cheque is a negotiable instrument instructing a Bank to pay a specific amount from
a specified account held in the maker/depositor's name with that Bank.A bill of
exchange drawn on a specified banker and payable on demand.Written order
directing a bank to pay money.
What is demand Draft?
A demand draft is an instrument used for effecting transfer of money. It is a
Negotiable Instrument. Cheque and Demand-Draft both are used for Transfer of
money. You can 100% trust a DD. It is a banker's check. A check may be
dishonored for lack of funds a DD can not. Cheque is written by an individual and
Demand draft is issued by a bank. People believe banks more than individuals.
What is a NBFC?
A non-banking financial company (NBFC) is a company registered under the
Companies Act, 1956 and is engaged in the business of loans and advances,
acquisition of shares/stock/bonds/debentures/securities issued by government, but
does not include any institution whose principal business is that of agriculture
activity, industrial activity, sale/purchase/construction of immovable
property.NBFCs are doing functions akin to that of banks; however there are a few
differences:
(i)A NBFC cannot accept demand deposits (demand deposits are funds deposited
at a depository institution that are payable on demand -- immediately or within a
very short period -- like your current or savings accounts.)
(ii) it is not a part of the payment and settlement system and as such cannot issue
cheques to its customers; and
(iii) Deposit insurance facility of DICGC is not available for NBFC depositors
unlike in case of banks.
Diff between banking & Finance?
www.Expertmasterji.com
10
www.Expertmasterji.com
11
www.Expertmasterji.com
12
www.Expertmasterji.com
13
www.Expertmasterji.com
14
www.Expertmasterji.com
15
www.Expertmasterji.com
Another important function of the Central Bank is the issuance of currency notes,
regulating their circulation in the country by different methods
.
What is Scheduled Bank?
All banks which are included in the Second Schedule to the Reserve Bank of India
Act, 1934 are scheduled banks. These banks comprise Scheduled Commercial
Banks and Scheduled Cooperative Banks. The type of banks comes under these
Scheduled Commercial Banks and Scheduled Cooperative Banks can be seen in
the above figure. All most all banks are Scheduled banks in India.
What are Commercial Banks?
Commercial banks may be defined as, any banking organization that deals with the
deposits and loans of business organizations
Commercial banks issue bank checks and drafts, as well as accept money on term
deposits. Commercial banks also act as moneylenders, by way of installment loans
and overdrafts. Commercial banks also allow for a variety of deposit accounts,
such as checking, savings, and time deposit. These institutions are run to make a
profit and owned by a group of individuals
.
Types of Loans offered by Commercial banks:
1)Secured Loan: A secured loan is one where the borrower provides a certain
property or asset as collateral against the loan. The main condition of these loans is
that if the loan remains unpaid, the bank has the right to use the property in any
way they like to realize the outstanding amount.
2)Unsecured Loan: Unsecured loans have no collateral and therefore command
higher interest rates. There are a variety of unsecured loans available today and
these include credit cars, credit facilities such as a lines of credit, corporate bonds,
and bank overdrafts.
3)Mortgage Loans: Mortgage loans that are provided by commercial banks are
similar to secured loans but are used specifically to buy real estate property for
commercial purposes. In most of these cases, the banks hold a lien on the title to
the particular property purchased with the loan. If the borrower is unable to pay the
loan back, the bank leverages this item against the loan to generate funds or
recover the principal.
What are Public Sector Banks?
These are banks where majority stake is held by the Government of India.
Examples of public sector banks are: SBI, Bank of India, Canara Bank, etc.
16
www.Expertmasterji.com
17
www.Expertmasterji.com
COMMITTEES/PROGRAMMES
A C SHAH
BIMAN JALAN
MALEGAM
BIRLA
KIRITH PARIKH
CHATURVEDI
SR HASHIM
ABHIJIT SEN
C RANGARAJAN
ABID HUSSAIN
18
www.Expertmasterji.com
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
DAMADORAN
KHANDELWAL
PATIL
V K SHARMA
SARANGI
KHANNA
DANTAWALA
GADGIL
THORAT
DEEPAK MOHANTY
RAGHURAM RAJAN
NARESH CHANDRA
RAKESH MOHAN
KAKODKAR
PITRODA
SSA
NRHM
ICDS
MDM
NRDWP
06
07
08
TSP
NSAP
MGNREGA
09
10
11
IAY
RGGVY
JNNURM
12
BNY
2001
2005
1975
1995
2009
2006
1999
2005
2005
EGSM
02
03
04
05
TRYSEM
IRDP
NREP
RLEGP
06
07
08
09
10
11
JRY
NRY
SUWE
EAS
SJSRY
SJGSY
1972
1979
1980
1980
1983
1989
1989
1990
1990
1997
1999
19
www.Expertmasterji.com
12
JPNRGY
13
14
15
16
PMGY
SGRY
FWP
PMEGP
2002-2003
2000
2001
2001
2008
CDP
NPRD
CAPART
04
05
06
07
08
09
10
11
12
DRDA
PMGSY
13
14
VAAY
MPLADP
15
AHIP
16
RAY
DPAP
TSC
NGP
DDP
IWDP
1952
1984
1986
1993
2000
1975
1973-1974
2000
1999
2003
1977-1978
1989-1990
2001
1993
2009
2010
STEPW
02
RGSEAG
03
04
05
06
07
IGMSY
08
DWCRA
09
10
STEP
2003-2004
2010
1993
2001
1995
1986
1982
2008
2007
20
www.Expertmasterji.com
11
12
GBS
NMEW
2004
2010
NPEGEL
02
03
KGBVS
IEDSS
04
RMSA
SUCCESS
05
2003
2004
2009-2010
2009
2009
NRHM
JSY
PMSSY
2005
2005
2010
BLACK REVOLUTION
BLUE REVOLUTION
BROWN REVOLUTION
04
GOLDEN FIBRE
REVOLUTION
GREEN REVOLUTION
GREY REVOLUTION
PINK REVOLUTION
05
06
07
08
09
10
11
12
13
14
15
RAINBOW
REVOLUTION
RED REVOLUTION
ROUND REVOLUTION
SILVER FIBER
REVOLITION
SILVER REVOLUTION
WHITE REVOLUTION
YELLOW
REVOLUTION
EVERGREEN
REVOLUTION
PETROLEUM PRODUCTION
FISH PRODUCTION
LEATHER/NON CONVENTIONAL(INDIA)/COCOA
PRODUCTION
JUTE PRODUCTION
FOODGRAIN/CEREALS, WHEAT ETC
FERTILISER REVOLUTION
ONION PRODUCTION/PHARMACEUTICAL/PRAWN
PRODUCTION
HOLISTIC DEVELOPMENT OF AGRICULTURE SECTOR
MEAT AND TOMATO PRODUCTION
POTATO REVOLUTION
COTTON REVOLUTION
EGG/POULTRY PRODUCTION
MILK/DAIRY PRODUCTION
OIL SEEDS PRODUCTION
INCREASE IN PRODUCTIVITY AND PROSPERITY
WITHOUT ECOLOGICAL HARM
NAVRATNAS
01
21
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
www.Expertmasterji.com
BHARAT HEAVY ELECTRICALS LIMITED
BHARAT PETROLEUM CORPORATION LIMITED
GAS AUTHORITY OF INDIA LIMITED
HINDUSTAN AERONAUTICS LIMITED
HINDUSTAN PETROLEUM CORPORATION LIMITED
MAHANAGAR TELEPHONE NIGAM LIMITED
NATIONAL ALUMINUM COMPANY LIMITED
NATIONAL MINERAL DEVELOPMENT CORPORATION
NEYVELI LIGNITE CORPORATION LIMITED
OIL INDIA LIMITED
POWER FINANCE CORPORATION LIMITED
POWER GRID CORPORATION OF INDIA LIMITED
RASHTRIYA ISPAT NIGAM LIMITED
RURAL ELECTRIFICATION CORPORATION LIMITED
SHIPPING CORPORATION OF INDIA LIMITED
FINANCE COMMISSION
FINANCE
COMMISSION
I
II
III
IV
V
VI
VII
VIII
IX
X
XI
XII
XIII
ESTD
ON
1951
1956
1960
1964
1968
1972
1977
1983
1987
1992
1998
2003
2007
CHAIRMAN
K C NYOGI
K SANTHANAM
A K CHANDA
P V RAJAMANNAR
MAHAVEER TYAGI
BRAHMANAND REDDY
J M SHELIET
Y B CHAVAN
N K P SALVE
K C PANT
A M KHUSRO
C RANGARAJAN
VIJAY L KELKAR
OPERATIONAL
DURATION
1952-1957
1957-1962
1962-1966
1966-1969
1969-1974
1974-1979
1979-1984
1984-1989
1989-1995
1995-2000
2000-2005
2005-2010
2010-2015
There are two structures of taxes namely direct tax and indirect tax
Direct tax are personal income tax, corporation tax, wealth tax, gift
tax, land revenue, profession tax, stamp duty and registration charges,
securities transaction tax, banking cash transaction tax
Excise tax are excise duty, custom duty, sales tax, service tax, value
added tax, passenger tax, entertainment tax, electricity duty, motor
vehicles tax
22
www.Expertmasterji.com
Readers are free to point out any mistakes and errors in the information provided so that the
mistakes can be rectified. Please provide your feedback.