Wednesday, 2 August 2017

3rd Bi-monthly Monetary Policy Statement, 2017-18

Third Bi-monthly Monetary Policy Statement, 2017-18 Resolution of the Monetary Policy Committee (MPC) Reserve Bank of India

On the basis of an assessment of the current and evolving macroeconomic situation at its meeting today, the Monetary Policy Committee (MPC) decided to:
reduce the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points from 6.25 per cent to 6.0 per cent with immediate effect.

Consequently, the reverse repo rate under the LAF stands adjusted to 5.75 per cent, and the marginal standing facility (MSF) rate and the Bank Rate to 6.25 per cent.

The decision of the MPC is consistent with a neutral stance of monetary policy in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth. The main considerations underlying the decision are set out in the statement below.

Dr. Chetan Ghate, Dr. Pami Dua, Dr. Viral V. Acharya and Dr. Urjit R. Patel were in favour of the monetary policy decision, while Dr. Ravindra H. Dholakia voted for a policy rate reduction of 50 basis points and Dr. Michael Debabrata Patra voted for status quo. The minutes of the MPC’s meeting will be published by August 16, 2017.

The next meeting of the MPC is scheduled on October 3 and 4, 2017.

Monday, 26 June 2017

Abbreviations for bank exam

VAR- Vector Autoregressive
BVAR- Bayesian vector autoregressive
ADs- Authorised Dealers
FERA- Foreign Exchange Regulations Act
LERMS- Liberalized Exchange Rate Management System

Tuesday, 13 June 2017

Questions asked in Allahabad Bank promotion exam

Allahabad Bank promotion exam questions asked scale 1 to scale 2-
Q 1 IN PCA what is the mean of P                       
Q2 NPCI AND BHEL STANDS FOR                       
Q 3 SBI cap after merger 

Monday, 12 June 2017

Subvention and subsidies on short term crop loan up to Rs. 3 lakh

The Central Government will provide interest subvention of 5 per cent per annum to all farmers for short term crop loan up to one year for loan up to Rs 3 lakh borrowed by them during the year 2016-17. Farmers will thus have to effectively pay only 4 per cent as interest.

Farmers will get short-term crop loans of up to Rs 3 lakh at a subsidised interest rate of 4 per cent this fiscal year, provided they repay in time, or else a higher rate of 7 per cent will be charged.

Sunday, 11 June 2017

Monetary Policy Committee (MPC)

Constitution of the Monetary Policy Committee under the Reserve Bank of India Act, 1934

The Reserve Bank of India Act, 1934 (RBI Act) has been amended by the Finance Act, 2016, to
provide for a statutory and institutionalised framework for a Monetary Policy Committee, for
maintaining price stability, while keeping in mind the objective of growth. The Monetary Policy
Committee would be entrusted with the task of fixing the benchmark policy rate (repo rate)
required to contain inflation within the specified target level. A Committee-based approach for
determining the Monetary Policy will add lot of value and transparency to monetary policy
decisions. The meetings of the Monetary Policy Committee shall be held at least 4 times a year
and it shall publish its decisions after each such meeting.

Sunday, 28 May 2017

Sale of Goods Act- 1930 "Bullet Points"

Sale of Goods Act

·       A contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the property in the goods to the buyer for a price( sec-4 of the Act )

Monday, 22 May 2017

Tuesday, 16 May 2017

Banking Questions Test (MCQ)- 66

Q1. The Bank Balance Sheets have … schedules
a.    12      
b.    15      
c.     13      
d.    16      

Sunday, 14 May 2017

Banking Questions Test (MCQ)- 65

Q1. The rate at which interest is paid by RBI on the CRR balance of the Banks
a.    4%    
b.    Nil     
c.     Bank Rate    
d.    Repo Rate   

Tuesday, 9 May 2017

Banking Questions Test (MCQ)- 64

Q1. The credit policy decision is taken by a committee headed by the
a.    Finance Minister
b.    RBI Governor
c.     Deputy Governor of RBI

Saturday, 6 May 2017

MCLR- (Marginal Cost of Funds based Lending Rate)

Marginal Cost of Funds based Lending Rate
Ø  All rupee loans sanctioned and credit limits from 1 April 2016 will be priced with MCLR which will be the internal benchmark

Thursday, 4 May 2017

Banking Questions Test (MCQ)- 63

Q1. Which of the following statements is true about RBI?
a.    RBI is a statutory, autonomous, independent body incorporated as per the Sec 3 of the RBI Act 1934.
b.    RBI commenced its operation on 01.04.1935.

Tuesday, 2 May 2017

Banking Questions Test (MCQ)- 62

1.    Which of the following is not a qualified acceptance:
a.    Accepted payable after return of my son from Chennai
b.    A bill for Rs. 25000/- accepted for Rs. 18000
c.     A bill accepted payable at Allahabad Bank

Monday, 1 May 2017

Banking Questions Test (MCQ)- 61

1.     In case of bill in sets, acceptance or payment is made on
a.    all copies of the bill.
b.    only on original copy
c.     any two copies of the bill

Sunday, 30 April 2017

Banking Questions Test (MCQ)- 60

1.     A bank does not want to pass a cheque against clearing. It will return the cheque with remark –
a.    Refer to drawer
b.    Exceeds arrangement
c.     Effect not cleared

Saturday, 29 April 2017

Banking Questions Test (MCQ)- 59

1.     On a cheque issued by a customer the words bearer or order are not written. This cheque will be treated as-
a.    A bearer cheque
b.    An order cheque
c.     This is not a valid cheque

SENIOR CITIZEN'S SAVINGS SCHEME-2004

Ø  Interest @ 8.4% per annum from the date of deposit on quarterly basis w.e.f. 01-04-2017 ( for Quarter-I)
Ø  Minimum deposit is Rs 1000 and multiples thereof. Maximum limit of 15 lakhs.
Ø  Maturity period is 5 years and can be extended for a further period of 3 years.
Ø  Age should be 60 years or more, and 55 years or more but less than 60 years who has retired under a Voluntary Retirement Scheme or a Special Voluntary Retirement Scheme on the date of opening of the account within three months from the date of retirement.
Ø  No age limit for the retired personnel of Defense services provided they fulfill other specified conditions.
Ø  The account may be opened in individual capacity or jointly with spouse.
Ø  TDS is deducted at source on interest if the interest amount is more than Rs 10,000/- per annum.
Ø  Investment up to Rs 1, 50,000/- per annum qualifies for Income Tax Rebate under section 80C of IT Act.
Ø  Interest can be automatically credited to savings account provided both the accounts stand in the same bank...
Ø  Premature closure is allowed after one year on deduction of 1.5% of the deposit and after 2 years on deduction of 1%.
Ø  No withdrawal permitted before the expiry of a period of 5 years from the date of opening of the account.

Ø  Non-resident Indians (NRIs) and Hindu Undivided Family (HUF) are not eligible to open an account.

Micro, Small and Medium Enterprises (MSMEs)

Computation of Adjusted Net Bank Credit (ANBC)

What is included under Weaker Sections under priority sector?

NPA-Provisioning

Sukanya Samriddhi Account (सुकन्या समृद्धि योजना)

Wednesday, 26 April 2017

Banking Questions Test (MCQ)- 58

1.    The following is a promissory note:-
a.    I Promise to pay Krishan Rs.1000 after my promotion in Scale –II
b.    I promise to pay Sridhar Rs. 1000 one month after his marriage to Seema

CREDIT GUARANTEE TRUST FOR MICRO & SMALL ETERPRISES (CGTMSE)

The CGTMSE provides guarantee cover for the credit facilities provided by member lending institutions (MLIs) to Micro and Small Enterprises (both manufacturing and service sectors) through its Credit Guarantee Scheme (CGS). Retail Credit Facilities and Loans to Medium Enterprises (both manufacturing and service sectors) are not covered under the scheme. The purpose of the scheme is to provide hassle free credit to Micro and Small Enterprises which are unable to provide collateral security/third party guarantee to the Bank by providing guarantee cover in these accounts to the Member Lending Institutions (Banks).

PUBLIC PROVIDENT FUND (PPF) 1968

Ø  Interest rate of 7.9% per annum w.e.f. 01-04-2017
Ø  Minimum deposit is 500/- per annum. Maximum deposit is Rs. 1,50,000/- per annum
Ø  The scheme is for 15 years.
Ø  Investment up to Rs 1, 50,000/- per annum qualifies for Income Tax Rebate under section 80C of IT Act.
Ø  Interest is completely tax-free.
Ø  Deposits can be made in lump sum or in 12 installments.
Ø  One deposit with a minimum amount of Rs 500/- is mandatory in each financial year.
Ø  Withdrawal is permissible from 6th financial year.
Ø  Loan facility available from 3rd financial year up to 5th financial year. The rate of interest charged on loan taken by the subscriber of a PPF account on or after 01.12.2011 shall be 2% p.a. However, the rate of interest of 1% p.a. shall continue to be charged on the loans already taken or taken up to 30.11.2011.
Ø  Free from court attachment.
Ø  Non-Resident Indians (NRIs) not eligible.
Ø  An individual cannot invest on behalf of HUF (Hindu Undivided Family) or Association of persons.
Ø  Ideal investment option for both salaried as well as self-employed classes.

Micro, Small and Medium Enterprises (MSMEs)

Computation of Adjusted Net Bank Credit (ANBC)

What is included under Weaker Sections under priority sector?

NPA-Provisioning

Sukanya Samriddhi Account (सुकन्या समृद्धि योजना)


Tuesday, 25 April 2017

BASIC ACCOUNTANCY

best book
·       The Journal is the beginning. It is the place of systematically recording all business transactions

Banking Questions Test (MCQ)- 57

1.    A clean bill is one which
a.    does not contain any superimposed clauses regarding manner of its payment
b.    does not indicate defective condition of the goods or packing
c.     is not accompanied by any document of title to goods

Monday, 24 April 2017

Micro, Small and Medium Enterprises (MSMEs)


Computation of Adjusted Net Bank Credit (ANBC)

Adjusted Net Bank Credit (ANBC)

Bank Credit in India [As prescribed in item No.VI of Form ‘A’ under Section 42 (2) of the RBI Act, 1934].
I
Bills Rediscounted with RBI and other approved Financial Institutions
II
Net Bank Credit (NBC)*
III (I-II)
Bonds/debentures in Non-SLR categories under HTM category+ other investments eligible to be treated as priority sector +Outstanding Deposits under RIDF and other eligible funds with NABARD, NHB and SIDBI on account of priority sector shortfall + outstanding PSLCs
IV
Eligible amount for exemptions on issuance of long-term bonds for infrastructure and affordable housing
V
Eligible advances extended in India against the incremental FCNR (B)/NRE deposits, qualifying for exemption from CRR/SLR requirements.
VI
ANBC
III+IV-V-VI

Banking Questions Test (MCQ)- 56



1.    What is the target of Export Credit for Indian Commercial Banks?
a.    12% of Adjusted Net Bank Credit
b.    12% of Credit Equivalent of Off Balance Sheet Exposure.

Sunday, 23 April 2017

Banking Questions Test (MCQ)- 55


1.    Crystallization of import bills under L/C means:
a.    Bill is scrutinized whether it is as per L/C terms or not
b.    It is ensured that currency of L/C & insurance is same or not

Saturday, 22 April 2017

Banking Questions Test (MCQ)- 54


1.    If a LC contains conditions without stating documents to be presented in compliance therewith, banks will:
a.    Have to seek clarification from opening bank

Friday, 21 April 2017

Banking Questions Test (MCQ)- 53

1.    Exchange control in India is administered by:
a.    FEDAI
b.    RBI

Thursday, 20 April 2017

Banking Questions Test (MCQ)- 52



1. What is the minimum pecuniary jurisdiction of DRT?
a) Rs.10 lacs    b) Rs.15 lacs    c) Rs.20 lacs       d) None of these

Wednesday, 19 April 2017

Banking Questions Test (MCQ)- 51


1. Stamped receipt is required for payment of:
a) Over Rs.500/-                b) Over Rs.1000/-   

Tuesday, 18 April 2017

What is included under Weaker Sections under priority sector?

1.

Small and Marginal Farmers

2.

Artisans, village and cottage industries where individual credit limits do not exceed ₹ 1 lakh

Banking Questions Test (MCQ)- 50

1. A time barred debt can be can be revived by:
a) Renewal of document
b) Acknowledgement of debt

Monday, 17 April 2017

NPA-Provisioning

Asset Classification
Period as NPA
Current provisioning (%)
Revised accelerated provisioning (%)
Sub- standard
(secured)
Up to 6 months
15
No change
6 months to 1 year
15
25
Sub-standard (unsecured ab-initio)
Up to 6 months
25 (other than infrastructure loans)
25
20 (infrastructure loans)
6 months to 1 year
25 (other than infrastructure loans)
40
20 (infrastructure loans)
Doubtful I
2nd year
25 (secured portion)
40 (secured portion)
100 (unsecured portion)
100 (unsecured portion)
Doubtful II
3rd & 4th year
40 (secured portion)
100 for both secured and unsecured portions
100 (unsecured portion)
Doubtful III
5th year onwards
100
100