Incredible Banking (Apr 2014 Issue)

5/26/2018 Incredible Banking (Apr 2014 Issue)

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Incredible Bankin

Dear Readers,

Awareness regarding increasing needs of Banking Industry, their peculiar entities andexplicit enlightenment to attain goals of development have always intrigued a person banker.

In the absence of requisite erudition and expertise, evidences reveal that a banker flounders toelevate in the industry and is ceased to enhance at his competency.

As a result of this non-proficiency, when fickle opportunity does finally knock on the door, one is tapped and has nother choice except to fizzle.

So, it is with an immense ecstasy that I am presenting to you the profuse guide in the form of a monthly-magazinINCREDIBLE BANKING.

e magazine comprises useful materials & freights relevant to the day-to-day happenings and phenomena ofbanking industry.

I have taken painstaking efforts to present the magazine in an elaborative yet simpler manner keeping in view therequirements of our esteemed readers.

I am sure that if you read it intelligently and wisely it will go a long way in equipping you with knowledge to face tgruelling battle and bring you sure success at your workplace. I always try to understand the demands & requiremeof our readers,as an instance of this, I would love to know your feedback, suggestions & changes in the pattern andcontents ; beacuse sharing is caring

Ultimately, I would conclude with my promise that INCREDIBLE BANKING will nourish you with the fruitfuknowledge & the best guidance. It is upto you to make the best use of it for an EMPHATIC-SUCCESS.

With best wishes for your brilliant triumph.

Sincerely yours,

Rahul RiturajAsst ManagerCentral Bank of India

Editors Essence

NPA Recovery Strategies

Banking Breaking News

Banking Buzz

Bankers Brief on Banking Bu

Brain Boggling Banking Quiz

An Initiative by Rahul Rituraj

Nirmal PublicationApril 2014Issue : 1st

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Content

INCREDIBLE BANKINGINCREDIBLE BANKING MONTHLY MAGAZINE APRIL 2014


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Incredible Bankin

NPA RECOVERY STRATEGIES

Recovery Measures:

A NPA account can be recovered after taking thmeasures effectively :

# Non Legal Measures : Send notices to the defaulters periodically

Visit the borrower personally and discuss reasonsthe default

Try to understand the problem and if any relief measucan be offered it can be done.

Special recovery camps can be arranged for focuapproach

Assess the realizable value of securities

Take steps to encash the security

# Legal Measures :

Invoke provision of Securitization & ReconstructioFinancial Assets And Enforcement Of Security InteAct 2002 (SARFAESI) after observing formalities.

File suit in the court of law in case the accounts arecovered under SARFAESI

Even in the cases where recovery actions taken,negotiations for a compromise seetlement todone

Efforts are to be continous and taking borrower confidence will yield results.

SOME TIMES DUES ARE RECOVERABLE BUT D

TO THE NEGLIGENCE OF BANKER IT BECOM

COMPLICATED TO RECOVERNow lets read what are those negligences

It is the prime duty of a banker to inform the borrower at the

of sanction of a loan the repayment obligation in clear terms

Many times a communication gap in this respect leads to de

In some cases even recovery of a small amount known

Critical Amount will help us to avoid an irregular account

slipping to NPA category.Therefore special effort and care t

taken by Banker to recover this critical amount.

Repeated visit to the borrowers place and having discus

with him/her will give us an idea about current position of

economic activity and and income generation etc

Timely follow up with the borrower at a time when he gets inc

is mist.For example a farmer can be approached for recov

after harvest of crops.

Recovery efforts are to be On going Basis and regular .Acco

with high overdues are to be targeted to effect better quantu

recoveries.

So this is all about how we have to set a strategyaccomplishing our goal

Start By Today Itself And Work Effectively As Well Efficiently.

Today NPA (Non Performing Asset)has become a burningobject across banking industry.

So, we need to set a solid strategy to recover the same.The role of banker doesnt end up with sanction anddisbursement of loans. Actually the banker has to play avital role in monitoring and recovery of the dues from theborrowers. The following pre-cautionary steps shall helpa banker to ensure the accounts remain as Performing

Assets

Proper identification of borrower

Due diligence on borrower and the securities offered

Proper assessment of credit-requirements Timely decision

Ensuring compliance of lending norms

Ensuring creation of assets and running of the unit

Continuous support and guidance to the client

Educating the borrower about the nature of creditextended and repayment obligations to bank in clearterms

Standard assets form the major part of the credit portfolio.Regular monitoring and follow up shall maintain the healthof assets. Proper vigil to be maintained at all times to seethat recoveries in standard accounts are forth coming,which shall in turn ensure income recognition and adding tothe profit of the bank.

Recovery in NPA Accounts :

An account may slip into NPA category on account offollowing reasons :

From Borrower Side :

Improper planning

Choosing of business without good prospects

Lack entrepreneurial skills

Lack of business knowledge

Diversion of funds Wilful defaults

From Bank Side :

Mistake in selection of borrower

Deficiency in assessment of credit

Lack of due diligence

Improper financing

Delayed financing

Non ensuring of creation of assets

Lack of continued support to the unit

Failure to monitor the account


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1st April, 2014

Raghuram Rajan hold rates in RBIs first bimonthly review.

Yes Bank raises $500m in foreign currencyloans, deposits

How ?

Its due to regulatory relaxations introducedduring the fiscal.

Rajan warns PSU banks against year-end

window-dressingWhy ?

Adjustments by banks affect various marketsegments

Monitoring of foreign Investment under the PISin indian companies - Incorporation in cautionList - FIIs/NRI/PIO/FDI/ADR/GDRs : The SouthIndian Bank Ltd

Why ?

Foreign share holding through Foreign

Institutional Investors (FIIs)/Non-ResidentIndians (NRIs)/Persons of Indian Origin(PIOs)/Foreign Direct Investment (FDI)/

American Depository Receipt (ADR)/GlobalDepository Receipts (GDRs) in The SouthIndian Bank Ltd.

RBI allows foreign investors to hedge currencyrisks

Why ?

To improve risk mitigating environment in thecountry

Banks must not fine non-maintenance ofminimum balance

Why ?

Consumer protection is an integral aspect offinancial inclusion. Bank should limit servicebut not impose any charge

New banks post EC nod; on-tap permits, specialbanks soon

What ?

The Reserve Bank of India (RBI)

announce an in-principle approval for a hof new banks to be set up after securinnod from the Election Commission of Indi

Monetary Policy: RBI keeps policy rates, Cunchanged

Why ?

If inflation continues along the intended gpath, further policy tightening in the nterm may not be required.

Indusind Bank appoints T. Anantha Narayan

as additional director2nd April 2014

Bandhan, 1st microfinance inst to get banklicence

Bandhan Financial Services, the fimicrofinance institution in the country to a bank licence, is also one of the youngentities to be allowed to enter the bankspace.

Bitcoins swing hurt viability as currency

Why ? Govt across the globe are finding it diffi

to regulate virtual currency such as bitcwhich doesnt have a central issuer

Shri Gurdial Singh Sandhu nominated on RCentral Board

The Central Government has nominaShri Gurdial Singh Sandhu, SecretaDepartment of Financial Services, Minisof Finance, New Delhi as a director on Central Board of Directors of the Rese

Bank of India. RBI penalises Vyavasayik Evam Audyo

Sahakari Bank Ltd., Morena, Madhya Prades

Why ?

for violation of directives/instructioguidelines of the Reserve Bank on operatioinstructions on loan against WHRs acredit exposure ceiling, director related lodonations, Know Your Customers (KY

Anti Money Laundering (AML) and ncompliance to RBI inspection report.

BANKING BREAKING NEWS


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IFCI appoints CA. K. S. Sreenivasan as director

IFCI Ltd has informed that CA. K. S.Sreenivasan has been appointed as Directoron the Board of the Company.

3rd April 2014

R Gandhi appointed RBI Deputy Governor

R Gandhi has been appointed Deputy

Governor for a period of three years effectivetoday, RBI said in a statement. He wasExecutive Director of the Reserve Bankbefore being elevated to the post of DeputyGovernor.

PNB raises Rs 500cr capital through Tier-2bonds

How ?

Through Tier-2 (Basel III compliant) Bonds

6th April 2014

SBI to offload up to Rs 4,000 cr bad loans toARCs

Why ?

This helps banks to take the equivalentNPA figure out of books and make anyearly provision for recovery or actual cashpayment.

7th April 2014

RBI to issue Rs 10 bank notes with Rajanssignature

Whats New ? The notes will bear the rupee symbol on the

obverse and reverse sides, with inset letter Ain both numbering panels. The year of issue,2014, will be printed on the reverse side ofthe notes

8th April 2014

Deutsche Bank backs Anshu Jain

Who is he ?

India-origin Co- Ceo,whose name figured in

an on going probe into currency manipulationWhy ?

Because he is the man who had placed bankon right track

SBI Cap puts up brand Kingfisher Airlines forsale

Why ?

For recovering the dues

Doha bank is eyeing on Indian financial marketfor quick growth

9th April 2014

IDBI Bank nominates Sunil Chandra Mathurdirector on Soma Textiles Board

Bank Of Japan chief doubts on BitcoItins futu

Why ?

Scandal plagued digital unit cant bcurrency unless it proves its reliability

10th April 2014 State Bank Of Hyderabad to be principal ba

of Telangana

Why ?

Its wide reach is a plus point for the regio

11th April 2014

Citi Bank says no to subsidiary mode

Why ?

As per the recent guidelines of RBI,fore

banks have to run their business in indiamaking subsidiary of themselves but bank wants to operate its own entity

Raghuram Rajan criticises federal reserofficials

Why ?

For not expressing more public concernabout the financial turmoil their low interrate have unleashed in every mareconomies.

Relief on card for home loan

What ?

RBI panel suggests floating rate must reset any at the pre agreed dates

14th April , 2014

RBI to shortly issue Rs 500,Rs 100 notes2014 printing year

15th April 2014

Bank override card PIN requirement

Why ?

Many merchants are yet to put new machithat require PIN authorisation in the place

Therefore, customer find that they continue pay in the old way with more ea

16th April 2014

Mayaram is new finance secretary

SBI rolls out tab banking service

SBI launched E-KYC

Bhartiye Mahila Bank to open 60 more brancthis fiscal


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17th April 2014

RBI pitches for independent body to set financialbench mark

Why ?

Aiming to prevent manipulation pf interestrate and forex interest rate

CavinKare and Bharatiya Mahila Bank signs

MoU19th April 2014

Banks may be deemed to set as corporate agentfor multiple insurer

What ?

Working group recommends new model tobreak deadlock over insurance broker

Public Sector Banker plans to ask Financeministry for a 5 days week

Why ?

On the citation of UK view, where banksrun for 5 days, relaxes bankers and gaincompanys efficiency,reduce absenteesm,enterprise, competitiveness and retain talent.

22nd April 2014

ECGC to rolls out factoring service for smallunits

What ?

It will help small enterprises to meet theirworking capital requirements without

approaching G. Gopalakrishna takes over as Director of

CAFRAL

23rd April 2014

RBI adopted two stages verification fortransaction

Why ?

To prevent mass level of on going onlinefrauds

HDFC Bank profits 25%

How ?

Due to robust loan growth and interestincome

RBI curbs banks from extending guaranteeletter of control to overseas arms

Why ?

Non fund based creditors used to makeforeign currency borrowing to repay rupeeloans

Indian not yet ready for differentiated bank-S

Why ?

It is difficult to survive by selling only one/products

PSU banks may get additional capital infusionRs 7000 cr

The Department of Financial Services wo

request for additional funds in regular budas banks require more capital than what hbeen allocated in the interim budget, official said.

24th April 2014

Yes Bank net rises to 19%

How ?

Strong loan growth

Stable margin

Lower provisions

SBBJ reported profit 39%

How ?

Robust growth in net interest income & ninterest income

25th April 2014

RBI panel for softer retail loan terms

Why ?

A working group set up by RBI has sinterest rate on existing floating loans ne

not rise or fall with every change in base rof bank.

26th April 2014

ICICI Bank net rises 15 %

How ?

Higher non interest income & robust logrowth

RBI promotes 3 GMs to EDs

Whom ?

N S Vishwanathan

U S Paliwal

Chandan Sinha

Yes bank expands board

2 new directors

Saurabh Srivastava

Vasantha Gujrati


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AXIS Bank profits 18%

How ?

Healthy Margin

SBT profits 17%

How ?

Growth in net interest income

Reduction in operating expenses

Receipt of Subvention

Recovery

Raghuram Rajan went by panels view to heldpolicy rates

Why ?

Upside risk to inflation in the near termprovided rationale pause

29th April 2014

SBI recovers 350-400 Cr dues from Kingfisher

Airlines PNB Metlife India to enter pension space

IDFC to buy loans in priority sector during itstransition process to start a bank

SBM profits up 40%

How ?

Steep reduction in bad loan

Lower cost of deposit

30th April 2014

Federal bank net rises to 277 cr

How ?

Extreme reduction in NPA

SBI signs up Reliance money infrastructurebusiness correspondent

Why ?

It will identityfy borrower, process loapplication and follow up on recovery

IOB profit rises to 268 cr

How ?

Reduction in provisioning

Increase in interest & non interest income

Healthy recovery

NON CTS cheque may face delay from MAY

Why ?

Banks to reduce clearing arrangement ttimes a month

Dial *99# Enjoy Banking!!! Yes Its Really

True. Now There Is No Such Specific Need

Of Mobile Banking Application Because

You Can Avail Banking Simply Dialing #99#

Common For All Mobile Service

What is USSD?

It is a unique number (preceded by a * and followedby a #) dialled from any handset that lets the user toaccess his/her bank account.For banking,Customerscan dial *99# to receive a menu of options On theirhandsets.

How is it different from mobile banking?

Most mobile banking services are app basedrequiring the account holder to own a smartphone.However,any mobile handset can be used for USSDbanking

How it works...

Customer keys in *99#

Mobile operator connects session to NPCIgateway

Message displayed

Welcome to NUUP (National Unified USS

Platform) If BANKING menu is chosen,customer is aske

for 7- digit MMID prvoided by the bank

Customer enters 7 digit MMID Code

Customer choosen from menu of numbereoptions

SMS of confirmation sent to customer.

Which Banking Services?

Remittances

Balance Enquiry Basic Mobile Handset Is Used

Rs 1.50 Per Transaction

MOBILE BANKING MADE EASY


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Incredible Bankin

Earn As You Splurge

We tell you how to make the best use of rewardpoints given by credit/debit card companies.

Do you know why reward points earned on credit/debit card transactions expire if not redeemed ontime? Is it a significant loss? Why would a cardcompany deduct the reward points if not redeemed?

And, of course, why do card companies give rewardpoints for using their cards in the first place?

When a bank offers you a credit/debit card, it talksat length about reward points. It is difficult to make

sense of such talk, but for credit card companies,reward/loyalty programmes are an importantelement of their sales pitch.

Are reward points useful for card holders? Why arethey important for card companies? The answerlies in the economics of reward points that we try toexplain here.

HOW REWARD POINTS WORK

Every time you use your credit/debit card for atransaction, the card company earns an interchange

fee from the merchant outlet. It can vary from 1%to 2.5%. The outlet can negotiate a lower fee if itsvolumes are high.

Apart from the interchange fee, the card companymakes money from the annual fee it charges fromcard holders and interest earned on rolling overunpaid bills. They share a part of earnings (mostlyfrom interchange fee) with the card holder in theform of reward points to encourage him/her to use itmore frequently.

FACTORS THAT DETERMINE REWARD POINTS

EARNED

The number of points earned on each transactiondepends upon the amount involved, the type of cardused and at times on where the transaction is done.

Card variant:

On a basic card, for every transaction of Rs 100-150,the card holder earns one-two points. The figure canbe three-five for premium and super premium cards.

The higher the card variant, the more points yearn against the purchases made. For example, ABank My Zone card members earn up to 40 rewapoints per Rs 200 spent on dining on weekendsays Rajiv Anand, president, retail banking, ABank.

Typically, a card member can get one point per40-100 spent. This, however, depends upon card and the bank. For instance, American Expregives one point per Rs 40 on platinum cards and oper Rs 50 on non-platinum cards, says ShaileBaidwan, country manager and head, consumservices, American Express Banking Corp.

Entry-level cards are usually issued at a minimal

while premium cards have high joining and annfees.

Co-branded cards:

Reward points on co-branded cards are higher thon most cards. Card companies launch co-brandcards in partnership with airlines, petrol pucompanies and large stores.

The number of reward points on co-branded cacan be 5-10 times the points earned on other car

In case of co-branded cards such as airline carif you buy tickets of the partner airline through card, you get extra reward points and discounsays Rishi Mehra, founder, Deals4loan.com.

Where you are spending: Where you are swipusing your card also decides the number of rewpoints you earn.

If you are using your card to pay power bills, points earned may be less than what you get whyour card is swiped at a restaurant. The reason mbe that the credit card company is getting a hig

interchange fee from the restaurant than from utility company.

Some merchant outlets may pay the card compaa higher fee to increase sales. The company, in tuwill give more reward points for card use at theoutlets, says Rishi Mehra of deals4loan.com.

BANKING BUZZ


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Spending on special occasions:

One can also getbonus points forusing cards onspecial occasions.For example, thisValentines Day, somereward programmes

offered 50 bonuspoints on first onlinetransaction. Some

premium cards give bonus points on joining as well.

VALUE OF REWARD POINTS

If your credit card bill shows 5,000 points againstpurchases made in the past one year, what is valueof these points in monetary terms?

One reward point does not equal one rupee. In fact,it is much less than that in most cases (20-30 paise).

The value can vary from issuer to issuer. It can beas low as 10 paise per point and as high as Re 1 perpoint, says Anil Ramachandran, head, credit cards,IndusInd Bank. He says IndusInd Bank offers Re 1benefit per point earned on its Signature card.

One way of calculating the value of the reward pointis by checking the price of the gift available againstredemption. For example, a credit card company isoffering Rs 1,000 wrist watch against 5,000 rewardpoints. Thus, each reward point is worth 20 paise

HOW TO REDEEM

You can redeem reward points at any partnermerchant outlet or website.

Most programmes have started offering a rangeof options such as purchase of garments, homeappliances and cosmetics, besides gift vouchersand donation to charities. However, you shouldchoose the programme that offers the most numberof options, says Shailesh Baidwan of AmericanExpress Banking Corp.

Online redemption is the most convenient as it canbe done without calling up the banks customer caredepartment. Most banks offer home delivery forproducts purchased online against reward points.

You can also convert these points into air miles anduse them to buy air tickets.

Some loyalty programmes give a points-plus-payoption, wherein a customer can use the points andpay the balance to get what he wants. Some waiveoff the annual fee in exchange for reward points.

Some banks even allow customers to accumulreward points earned on their debit and credit ca(of the same bank) in one pool and redeem thtogether.

An example of this is the eDGE loyalty rewaprogramme of Axis Bank. Customers accumureward points not only on their credit and debit cabut also on savings account and forex remittanc

All the points are in one pool. The customer credeem all at once, says Rajiv Anand of Axis Ba

REWARD POINTS COME WITH EXPIRY DATE

Reward points can expire after a period. The percan vary from one-three years. Usually, badeduct the accumulated unused points at the endevery financial year.

Rishi Mehra of deals4loan.com says this is donereward points are a liability on the books of banwhich they want to do away with every year. This

also a way to prod card holders to keep redeemthe points.

REWARDING INDEED?

Reward points are an incentive for customers to utheir cards as much as they can. Banks gain frthe interchange fee from merchant outlets, whin turn gain from higher sales. The user of a caespecially a credit card, benefits only if he use

judiciously. He should spend as much on credit cas he would be able to pay within the interest-f

period.Besides, he must remember that reward poshould not be the primary reason for using credebit cards.

Therefore,its indeed an important cause

So it is suggested to take it before it expires !!!


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DUTIES AND RESPONSIBILITIES OF A BANK

CUSTOMER

Everywhere, we hear about the ideal concepts

like Customer is the King, Customers Delight,

Customer is our true boss etc. But, has any

one talked about the duties and responsibilities

of a bank customer? Does the customer have

only rights and privileges and doesnt have any

duties and responsibilities?

The answer is a big No.

Here, I have listed the duties and responsibilitiesof a bank customer in a focused and vivid

manner. A customer must remember these

things always.

1. The foremost duty of a customer is to comply

with the KYC norms that have become

universal now.

2. The customer must co-operate with the

bank in following all the standard rules

and procedures, without asking for anyexemption/waiver.

3. The customer must remember his bank

account number. The account number is

synonymous with his name, for all practical

purposes, because he is identified more by

his account number than anything else, in a

bank.

4. The customer must remember to sign the

same way each time and his signaturemust always match with his specimen

signature scanned and uploaded in the

banks computers. However, the customer

is entitled to change his specimen signature

once in a few years.

5. The customer has to bring his Passbook (in

case of S.B. Accounts) and Cheque Book (if

he enjoys this facility), whenever he visits

the bank in person. It will save a lot of ti

for himself and the bank staff.

6. Whenever the customer visits the bank

the second time, for completing an unfinish

job, it is advisable to carry all the relev

papers and documents in full set, with

fail.

7. Those customers who have cheque bo

facility shall not ask for a withdrawal fo

or a loose cheque, because in the C

environment it will be difficult to oblige theespecially when they want cash withdraw

8. The customer must be aware of his ban

business hours and shall not unnecessa

trouble the bank staff to comply with

requests outside the business hours. This

because the customers, upon their reque

are provided with Debit Card and Inter

Banking facility free of cost, almost by all

banks. Hence with these, a customer c

meet most of his financial needs, even whhis bank is closed.

9. The customer is expected to know

distinction between the Home Branch a

other branches of the same bank. This

because certain functions can be carried

only at the Home Branch (e.g. issuance

a new cheque book or a Debit Card, acco

closure, change of address etc.).

10. In case of a non-Home Branch, severestrictions exist for payment of cash to

third party, limits imposed on withdrawa

cash by oneself, sending RTGS or paym

of taxes etc. The customer must find out

nature of such restrictions from his Ho

Branch and remember them always.

11. The customer must behave decently a

politely when he is inside a bank or when

contacts his bank over phone or email.

BANKERS BRIEF ON BANKING BUZZ

Customer Is King But Upto What Extent ?


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12. Especially when he contacts his bank over

phone, he must be very specific on his

query and end his conversation within a few

minutes, because the bank staff at the other

end has several constraints in prolonging

the conversation unnecessarily.

13. If necessary, the customer must visit the

branch in person to satisfy his needs, asall his needs and wants cannot be fulfilled

through a phone call.

14. For certain types of jobs like withdrawal of

large sums of cash, premature cancellation

of a term deposit of huge value, issuance of

TDS certificate etc., advance intimation to

the bank is necessary.

15. The customer must approach the right

person (bank staff), for attending to hisparticular need. He shall not expect all the

bank staff to perform every kind of job at a

time.

16. Similarly, the customer must approach the

right branch/office for his special needs.

For example, in metros, there may be a

specialized branch for processing Housing

Loans or Forex transactions. Some branches

which have been designated as Corporate

Finance branches cannot be expected toextend gold loans and agricultural advances.

17. When some bank staff is on leave, the

customer shall not approach another staff

for some special type of jobs. For instance,

a staff sitting at the counters cannot be

expected to process his loan proposal, in

the absence of a regular staff who has been

entrusted with this work.

18. The customer must understand his bankis there only to fulfill his genuine banking

needs and the bank cannot act as his finance

manager or accountant. For the special

needs like investment and tax counselling,

the customer must approach his auditor or

any other competent professional only.

19. The customer shall not expect his bank to

offer solution for the problems faced by him

elsewhere.

20. Whenever there is acute shortage of staf

the branch, due to the absence of many s

at a time (on the grounds of leave, traini

transfer, deputation etc.), the custom

must co-operate with the staff present at

branch and learn to adjust, without show

his impatience, irritation and anger on the

21. The customer shall not attempt to juthe queue, when there are several ot

customers waiting before him for the sa

purpose like withdrawal/payment of ca

purchase of DD, remittance of taxes, send

RTGS/NEFT remittances etc.

22. The customer shall not demand any privile

or concession or service to which he is

entitled, as per the bank rules in vog

However, he may seek clarification fr

the bank staff, regarding his ineligibility

disqualification in this regard.

23. Once the bank manager has given his o

approval for any credit proposal, it is the d

of the customer to submit all the necess

papers and documents in one bunch, ne

sorted and arranged, without submitt

them in piecemeal. It will save a lot of t

for everyone and will obviate dissatisfact

and complaints.24. Having accepted all the terms and conditi

of sanction of a loan/advance, it is the dut

the customer to comply with them sincer

honourably and in time.

25. Finally, the customer must realize that

bank staff are also human beings and t

have got their own limitations. Hence,

customer must treat them as his equal.

he does this, he will get spontaneous resp

and love from all of them.


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? Risk arising out of defective documents oloan is called ...risk

a. Legal Risk b. Documentation Risk c. DefaRisk d. Credit Risk e. Combination of CreRisk 7 Legal Risk

? Which of the following card product launchby bank is working on principle of Buy NPay Later

a. ATM Card b. Debit Card c. Credit Cd. Charge Card

? Which of the following agencies/companieestablished by banks and financial institutfor the specific purpose of dealing in sale apurchase of distressed assets

a. SEBI b. SIDBI c. SHCIL d. ARCIL

? Which of the following is not consideredpolicy rate ?

a. Base Rate b. Repo Rate c. Marginal StandFacility d. CRR e. Non of these

? Which of the following is not credit ratagency

a. CRISIL b. ICRA c. CARE d. SMEe. ARCIL

? An industrial unit is treated as micro unit if itsoriginal investment in plant and machinerydoesnt exceed :

a. Rs 25 Lac b. Rs 3 Cr c. Rs 1 Cr d. Rs 5 Lace. Rs 10 Lac

? As per RBI guidelines,advances granted foreducation in india is treated as priority sector ifadvances doesnt exceed :

a. Rs 10 Lac b. Rs 7.5 Lac c. Rs 20 Lac d. Rs15 Lac e. Rs Non of these

? # Which of the following is not a minoritycommunity under priority sector guidelinesissued by RBI?

a. Sikh b. Budhist c. Jain d. Both (b) & (c) e.None of these

? Kisan credit card is valid for .....

a. 1 Year b. 2 Year c. 3 Year d. 5 Year e. Noneof these

? RBI increased reduced repo rate by 25basis points recently .Which of the followingrepresents one basis points?

a. One hundredth of one percent

b. One tenth of one percent

c. One thousandth of one percent

d. One percent

e. None of these

BRAIN BOGGLING BANKING QUIZDear Reader,

We Are Pleased To Play A Quiz,Insisng You To Acvely Take Part In It And Feel How Play

The Quiz Is ...

For Your Convenience We Have Given Answers Below

But First Try All Sort Of Quesons With Passion To Win The Game

ANSWERS

10. e 9. d 8. d 7.d6. a 5. a 4. e 3. c2. a 1. a

Incredible Banking (Apr 2014 Issue)

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Transcript of Incredible Banking (Apr 2014 Issue)