State Bank of India (SBI) Probationary officer PO Interview Schedule 2011

State Bank of India has declared the scheduled date of Interview for the Probationary officer exam held in 2011. Click on the below link to view your interview schedule.
https://www.sbi.co.in/user.htm?action=sbipointerviewschedule

Visit the following link to view your result of State Bank of India PO exam 2011

http://ibpsbankexam.blogspot.com/2011/11/state-bank-of-india-sbi-probationary.html

Banking Glossary (I)

Installment Loan
	A loan that you promise to pay back by paying the same amount of money on a regular basis, usually monthly, for a specific period of time. (Eg : EMI loan).
Interest
	Interest is the periodic amount credited / debited to a deposit / loan account by a Bank based on accepted agreed terms and conditions by the depositor and the Bank / the loanee and the Bank. Interest is calculated at a specified percentage of the principal amount.
Interest and Principal Certificate
	A certificate issued for the loan confirming the details of the interest paid and principal repaid for a completed financial year.
Interest Category
	This refers to the interest category of the loan that was sanctioned by the Bank. The interest category is allocated by the Bank based on the customer's request.
	Variable (Floating)
	The interest rates of the loans sanctioned under variable interest rate category will be changed during the tenure of the loan at specified intervals (see floating rate).
	Semi Fixed
	The interest rates of the loans sanctioned under semi fixed interest rate category remains fixed for the period 'stipulated' by the Bank in the terms and conditions of the agreement and / or sanction letter. After the said period, the loan will be re-priced as agreed to specified.
	Fixed
	The interest rates of the loans sanctioned under fixed interest rate category remain fixed throughout the tenure of the loan.
Interest Rate
	The rate paid on an interest-bearing account, such as savings and term deposit, also the rate charged on a loan or line of credit. Different types of accounts and loans pay or charge different rates of interest. Interest rate is specified in percentage term alson with periodicity of calculation (say 8% per annum)
Internal Capital Adequacy Assessment Process (ICAAP)
	In terms of the guidelines on BASEL II, the banks are required to have a board-approved policy on internal capital adequacy assessment process (ICAAP) to assess the capital requirement as per ICAAP at the solo as well as consolidated level. The ICAAP is required to form an integral part of the management and decision-making culture of a bank. ICAAP document is required to clearly demarcate the quantifiable and qualitatively assessed risks. The ICAAP is also required to include stress tests and scenario analyses, to be conducted periodically, particularly in respect of the bank's material risk exposures, in order to evaluate the potential vulnerability of the bank to some unlikely but plausible events or movements in the market conditions that could have an adverse impact on the bank's capital.
Introductory Rate
	The Annual Percentage Rate (APR) applied for a specific introductory period. The intro rate is usually lower than the regular APR. After the introductory period is over the rate switches to the regular APR.
Inward Remittances
	Fund received through banking channels electronically or otherwise for credit to a designated identifiable account.

Banking Glossary (H)

Half Year
	A period of 182 days if computed in days or six complete calendar months.
Held Till Maturity (HTM)
	The securities acquired by the banks with the intention to hold them up to maturity.
Held for Trading (HFT)
	Securities where the intention is to trade by taking advantage of short-term price / interest rate movements.
High Cost Deposit
	Deposits accepted above card rate (for the deposits) of the bank.
Hire Purchase Price
	The total money to be paid by the hirer under the hire-purchase agreement so as to complete the purchase of vehicle / machinery / goods etc.
Hirer
	The person who takes the good on hire. If you purchase a car under hire-purchase agreement with a finance company, then you become the hirer.
Home Branch
	The branch where customer has opened his account after due compliance with KYC norms.
Household Income
	Income from all sources including wages, commissions, bonuses, dividends and interest of the members of a family.
Hybrid Debt Capital Instruments
	In this category, fall a number of capital instruments, which combine certain characteristics of equity and certain characteristics of debt. Each has a particular feature, which can be considered to affect its quality as capital. Where these instruments have close similarities to equity, in particular when they are able to support losses on an ongoing basis without triggering liquidation, they may be included in Tier II capital.
Hypothecation
	Hypothecation is a charge that is created on movable asset as security for a debt. However, the ownership as well as possession of the asset is retained with the borrower.

Banking Glossary (G)

Guarantee
	A legal contract in which a person (termed as guarantor) agrees to become liable for repayment of loan taken by another person (termed as primary borrower) subject to the condition that the primary borrower must be legally bound to repay the debt.

State Bank of India (SBI) Probationary officer PO result 2011 declared

State Bank of India, India's largest public sector bank has announced the result of its Probationary officers exam held on 24 July 2001 declared

Click here to download the reslut of SBI PO exam 2011

http://www.statebankofindia.com/webfiles/uploads/files/1321609880326_SBI_PO_WE_RESULT.pdf

Bank of India RECRUITMENT OF SPECIALIST OFFICERS Scale II Result Announced

Bank of India Announced result of its Specialist Officers for Marketing MMG Scale II Post.

Click here to download the file

http://www.bankofindia.com/UserFiles/File/DISP.xls

All the Best for those who got the call for Interveiw

Please CLICK here for Result

Interviews will be tentatively held from 12.12.2011. However, interviews for Law Officer Scale -  I may be preponed. Candidates are advised to keep watching our web notices for postponement/preponement of interviews.

Interview Call Letters can be downloaded from Bank's website, 15 days before the date of interview.

Banking Glossary (F)

Fiscal Year

A fiscal year is a 12-month accounting period used by any company and it does not necessarily follow the calendar year. India fiscal year is April to March.

Fixed Deposit

A deposit of funds in a bank under an agreement stipulating that the funds must be kept on deposit for a stated period of time at a predefined interest rate.

Fixed Rate

Also called the fixed interest rate, it is a fixed amount of interest, which is chargeable for a specified duration or for the entire tenure of the loan.

Floating Rate

Floating rate or variable interest rate as it is also called doesn't remain fixed for the entire tenure of the loan. It varies according to the market conditions. This rate is linked to an external, market determined benchmark e.g. LIBOR. The lending is expressed with a spread above or below the benchmark rate. Repricing takes place after a predetermined period say, 6 months when the lending rate will be revised with reference to the benchmark rate as on that day.

Floor Limit (Credit Card)

Floor limit is the maximum amount; credit card brands like Visa and MasterCard have set forth for a single transaction for specific types of merchants, outlets and branches. An authorization is required, usually via a phone call to exceed the floor limit.

Foreclosure

Foreclosure is a legal procedure whereby property pledged as security for a debt is sold by the lender to pay the debt in the event of default in repayment.

Foreign Currency Convertible Bond

A bond issued in foreign currency abroad giving the investor the option to convert the bond into equity at a fixed conversion price or as per a pre-determined pricing formula.

Fraudulent Transaction (Credit Card)
A fraudulent credit card transaction is one in which the rules and regulations are not properly followed. Generally such transactions are unauthorized by credit card holders and involve a lost, stolen, fabricated, counterfeit and fraudulent processing of a credit card.

Fraud

Frauds have been classified as under, based mainly on the provisions of the Indian Penal Code :

(a) Misappropriation and criminal breach of trust. (b)

Fraudulent encashment through forged instruments, manipulation of books of account or through fictitious accounts and conversion of property.

(c) Unauthorised credit facilities extended for reward or for illegal gratification. (d) Negligence and cash shortages. (e) Cheating and forgery. (f) Irregularities in foreign exchange transactions. (g) Any other type of fraud not coming under the specific heads as above.

Funding Volatility Ratio

Liquid assets to current and savings deposits - (Higher the ratio, the better).

Banking and Financial News October 2011 Part 3 of 3

Canara Bank enters into MOU with M/s Brickwork Ratings India Pvt Ltd.:
Canara Bank signed a Memorandum of Understanding on 19.10.2011 with M/s Brickwork Ratings India (Pvt) Ltd, a Bangalore based credit rating agency for rating of units (both existing and prospective) under MSME sector, in the presence of Sri Ashok Kumar Gupta, Executive Director, Sri G Sreeram, GM and Sri Vivek Kulkarni, Managing Director, M/s Brickwork Ratings India Pvt. Ltd. This is yet another initiative of Canara Bank, to boost the MSME Credit growth.

Bankers fear new borrowers will prefer housing finance firms:The National Housings Bank’s (NHB) latest circular waiving penalty on full home loan prepayment may give housing finance companies (HFCs) an edge over banks this festival season. Bankers said that the RBI should also issue the same guidelines for banks to avoid a situation where HFCs have an advantage over banks. Mr R S Sangapure, General Manager, Central Bank of India, says, “Even the RBI may waive prepayment penalty soon. We expect to hear something in a month or so because prepayment penalty is an important parameter for customers to choose a lender.” (BS dt. 21.10.2011 p. 7)

Central Bank launches direct taxes payment facility:Central Bank of India has launched a direct taxes payment facility through the bank’s ATM network. This facility was inaugurated by Mr C. R. Sundaramurti, Controller General of Accounts, at the bank’s Connaught Circus branch in the Capital. Speaking on the occasion, Mr Sundaramurti urged banks to provide IT-enabled services so as to make banking a hassle-free experience for all. Mr M. V. Tanksale, Chairman and Managing Director of the bank, and Executive Directors, Ms V. R. Iyer and Mr R. K. Dubey were present on the occasion.  (BL dt. 22.10.2011 p. 6)

Forex reserves up $5.269 b to $317.5 b:India’s foreign exchange reserves surged by $5.269 billion to $317.500 billion in the week ended October 14, according to Reserve Bank of India’s ‘Weekly Statistical Supplement’. This is the second week in a row that foreign exchange reserves have seen an increase. In the previous week ended October 7, foreign exchange reserves rose by $749 million to $312.231 billion. (BL dt. 22.10.2011 p. 6)

Value of cheque transaction down:The total value of transactions carried out through cheques across the country in August amounted to Rs 7.43 trillion, down 83% over that in the same month last year. Banks had cleared cheques worth Rs 8.11 trillion in August 2010, according to the RBI data. The number of cheques cleared by banks in August also went down by 5% from the same month last year. A total of 11.16 crore cheques were cleared by banks in the month under review, compared with over 11.75 crore in the corresponding month of 2010.   (Mint dt. 24.10.2011 p. 10)

SBBJ to unveil special branch for rich & famous:This Diwali, top 1,000 millionaires of the country will get a well decorated greeting card from public sector lender State Bank of Bikaner and Jaipur (SBBJ) inviting to open a privileged account in its upcoming 'crorepati only' branch in Jaipur. The bank is targeting rich and famous, including Anil Ambani, Amitabh Bachchan, Mukesh Ambani, Kumar Mangalam Birla, Shah Rukh Khan and Sachin Tendulkar among other stalwarts of respective fields who can open account with a minimum opening balance of Rs 1 crore. This will be the second crorepati branch of the country after SBI's 'Kohinoor Banjara Premium Banking Centre' in Hyderabad which was opened last year. (ET dt. 24.10.2011 p. 13)

3-year rural posting 'must' for new bank clerks:New clerk recruits in public sector banks will have to serve three years mandatory in rural and semi-urban areas. Also, only graduates will now be eligible for taking clerical examinations for banks, as opposed to intermediate passed candidates at present. These are some of the recommendations of the A K Khandelwal Committee that have been asked to prepare a human resource plan incorporating these recommendations and get them approved by their Boards of Directors latest by December 31, 2011. The Khandelwal  Committee was set up on October 22, 2009 to study human resource issues of public sector banks. The committee has made 105 recommendations. (Bl dt. 25.10.2011 p. 1)

Syndicate Bank ties up with Asit C. Mehta for online platform:Syndicate Bank has tied-up with Asit C. Mehta Investment Interrmediates (ACMIIL) for the launch of ‘Synd e-Trade’ — an online trading platform. This platform will enable the customers of Syndicate Bank to make investments in equities, derivatives and initial public offerings, said the bank in a release. “Customers who have a bank account and demat account with Syndicate Bank, will now have the facility to open an online investment account with Asit C. Mehta Investment Intermediaries Ltd,” said Mrs Deena Mehta, Managing Director, ACMIIL. (BL dt. 25.10.2011 p. 12)

Find a fake note? Fear not to report it:If you come into possession of a fake currency note inadvertently, don’t be afraid to report it. No more will you face the threat of a police case or be treated with suspicion, thanks to new norms of the Reserve Bank of India. As per the existing norms, banks are required to file a first information report (FIR) immediately upon detection of a fake note. However, hesitation among customers as well as bank officials in taking the matter to police has led to under-reporting of the detection of fake notes. To address this, the apex bank now has instructed banks that there is no need to register a case with police unless five or more pieces of fake notes are detected in a single transaction. In all other cases where one or up to four fake notes are detected, a consolidated report can be sent to the police at the end of every month, the Reserve Bank of India said. This decision was taken on the recommendations of the High Level Group on Systems and Procedures for Currency Distribution Chaired by Ms. Usha Thorat, former Deputy Governor, Reserve Bank of India. (BL dt 28.10.2011 p.14)

High savings deposit rate likely to dent banks’ profits:Fears of banks’ earnings plummeting in a deregulated savings deposit rate regime appear to have gripped investors, with most analysts hinting that profitability may come under pressure due to higher cost of funds amid slowing growth in advances. “The rise in the savings deposit rate will increase pressures on banks’ profitability,” Mr Suman Chowdhury, head of Crisil Ratings, said. The rating agency expects the lenders’ return on asset ratio to shrink by five basis points (bps) because of higher savings deposit rate, even if banks increase their transaction and service charges on such deposits. The RBI allowed banks to decide on their own the interest rate on savings deposits. The central bank, however, asked banks to pay a uniform rate on savings deposits up to Rs 100,000 irrespective of the amount in the account.  (BS dt 27.10.2011 p.6)

Banks look to young talent as retirements bunch up:For young, talented bank employees with a passion for work, there is opportunity to move up the ladder. To fill the leadership vacuum likely to be created in the middle-to-upper rungs of management due to retirement, many banks are now drawing up strategies to deal with the situation. In fact, this is one of the key recommendations of Dr Anil Khandelwal Committee, which looked into the human resources function of bank. Some of the suggestions of the panel are now being implemented by the Government in a phased manner. It is estimated that nearly half of the senior managers in banks would begin to retire in next 3-5 years and the trend would continue for some more years. This will open up new avenues for the younger employees to grow even as the lateral movement will create fresh vacancies at the entry level.  (BL dt 29.10.2011 p.6)

Forex reserves up $858 m to $318.35 b:India’s foreign exchange reserves rose by $858 million to $318.358 billion in the week ended October 21, according to Reserve Bank of India’s ‘Weekly Statistical Supplement’. In the previous week ended October 14, India’s foreign exchange reserves rose by $5.269 billion to $317.50 billion The reserves increased on account of a $861 million rise in the foreign currency assets, taking it to $282.514 billion. Foreign currency assets expressed in US dollar terms include the effect of appreciation or depreciation of non-US currencies such as the euro, sterling and yen held in reserves. In the week under consideration, the euro strengthened against the dollar from $1.3737 on Monday to $ 1.3896 on Friday. 
(BL dt 29.10.2011 p.6)

Important General Awarness 9

1. Who is the chief advisor to the Governer ?
a) Chief Justice of Indian Supreme Court
b) Chief Minishter
c) Speaker of Lok Sabha
d) President

2. Article 370 of the constitution of India provides for
a) temporary provisions for Jammu & Kashmir
b) special provisions in respect of Nagaland
c) provisions in respect of the financial emergency
d) Special provisions in the respect of Manipur

3. The United Kingdom is a classic example of
a) Arusticracy
b) Absolute monarchy
c) Constitutinal Monarchy
d) Democracy

4. Who is called father of History ?
a) Plutarch
b) Herodotus
c) Justin
d) Pliny

5. Gobar gas (biogas) mainly contains
a) methane and ethane
b) methane and butane
c) propane and butane
d) methane, ethane, propane and propylene

6. The full form of "AM" regarding radio braodcasting ?
a) Amplitude Movement
b) Anywhere Movement
c) Amplitude Modulation
d) None of above

7. Which Indian state is having border Nathu La , between India and China
a) Sikkim
b) Arunachal Pradesh
c) Himachal Pradesh
d) Jammu & Kashmir

8. 2010 FIFA Football worldcup was held in which nation ?
a) England
b) South Africa
c) Zimbawe
d) Brazil

9. The disease in which the sugar level of blood increases is known as
a) Diabetes mellitus
b) Diabetes insipidus
c) Diabetes imperfectus
d) Diabetes sugarensis

10. Prime Misnister of Great Britain is
a) Tonay Blair
b) Gordown Brown
c) Nicholos Sarkozy
d) David Cameroon

11. What is the principle ore of Aluminium ?
a) Dolomite
b) Copper
c) Lignite
d) Bauxite

12. The highest body which approves the Five Year Plan in India
a) Planning Commission
b) Lok sabha
c) Finance Ministry
b) Union Cabinet

13. Current Minimum Interest rate on Saving bank account is
a) 3.5%
b) 4%
c) 6%
d) 5.5%

14. The new hiked limit of PPF account is (in INR)
a) 70,000
b) 1,00,000
c) 1,80,000
d) 1,90,000

15. The new interest rate on PPF account is
a) 8%
b) 8%
c) 9%
d) 8.6%

_____________________
KEYS

1. (b) 2. (a) 3. (c) 4. (b) 5. (b) 6. (c) 7. (a) 8. (b) 9. (a) 10. (d) 11. (d) 12. (b) 13. (b) 14. (b) 15. (d)

Banking Glossary (E)

Early Repayment Charge (Prepayment charge)
Charge that banks and financial institutions levy on borrowers when they prepay the loan amount before the end of loan tenure. Early repayment charge is also called prepayment penalty.

Electronic Clearing Service (ECS)
Electronic Clearing Facility : An inter bank arrangement where by a customer can give instructions to his bank where he holds a current or savings account to pay the monthly installments of payments due on loans / credit cards held with another bank.

Electronic Clearing Service (ECS) Credit ECS Credit is used for affording credit to a large number of beneficiaries by raising a single debit to an account, such as dividend, interest or salary payment.

ECS Credit can be utilised for payments like interest / dividend etc. in the accounts maintained with other banks by another bank.

Electronic Clearing Service (ECS) Debit ECS Debit is used for raising debits to a number of accounts of consumers / account holders for crediting a particular institution.

It is a scheme under which an account holder with a bank can authorise an ECS user to recover an amount at a prescribed frequency by raising a debit in his account. The ECS user has to collect an authorisation, which is called ECS mandate for raising such debits. These mandates have to be endorsed by the bank branch maintaining the account.

ECS Debit is normally used for collections, which include payment of utility bills (electricity, telephone), collection of taxes etc.

Electronic Funds Transfer (EFT) Any transfer of funds initiated by electronic means, such as an electronic terminal, telephone, computer, ATM or magnetic tape.

EMI This refers to the Equated Monthly Installment (EMI) to be paid to the Bank towards the loan taken by the borrowers on a monthly basis. The EMI comprises of Interest and Principal component.

EMI Due date The payment due date assigned for the loan account to recover the EMI.

E-Payment On line payment system that facilitates payment online from the customer's account.

Expired Card A credit card or debit / atm card whose validity date has passed is an expired credit card.

Banking and Financial News October 2011 Part 2 of 3

2% interest subvention on rupee export credit extended:
The Government, on Tuesday, announced the extension of 2 per cent interest subvention on rupee export credit for a year with effect from April 1, 2011. In a notification the Reserve Bank of India said banks should reduce the interest rate chargeable to exporters  eligible for subvention subject to a minimum of 7 per cent. Banks may pass on the benefit of 2 per cent interest subvention completely to the eligible exporters, Reserve Bank of India said. The four sectors which have been given the subvention are handicrafts, handlooms, carpet and small and medium enterprises. 
(BL dt. 12.10.2011 p. 6)

Value of credit card transactions rises 29% in August:
Transactions carried out using credit cards in August were worth Rs 8,078.98 crore, 29.1 per cent more than that in the same month last year. Credit card transactions in August, 2010, amounted to Rs 6,259.42 crore. The number of credit cards in circulation has, however, declined by over 6.7 per cent to 1.75 crore as of August 31, 2011, from 1.88 crore at the end of the same period last year. According to the Reserve Bank of India data, transactions using credit card during the April-August period of this fiscal stood at Rs 37,678.25 crore, against Rs 29,024.75 crore in the same period of 2010-11.
(BL dt 11.10.2011 p.6)

Now, get a car loan online:
If you have a clean financial record, it is now possible to get a car loan instantly with a click of the mouse. State Bank of Bikaner and Jaipur has on Wednesday rolled out instant online car loan in which one can obtain a sanction letter if he/she is eligible for the loan. All one has to do is apply for the loan on bank’s Website - http://www.sbbjbank.com/ - and fill a one-page form. After checking the eligibility of the applicant, a sanction letter will be issued within seconds. “Such a service of instant sanction is not available with any Bank in India, in public or private sector,’’ Mr Shiv Kumar, Managing Director, State Bank of Bikaner and Jaipur, said in a release.  (BL dt. 13.10.2011 p. 6) 

Bajaj Finance ropes in Standard Chartered Bank for credit cards:
Bajaj Finance Limited, a non-banking financial company (NBFC), is set enter the credit card business by launching a co-branded credit card with Standard Chartered Bank. To start with, the NBFC would focus only on captive clients. It aims to issue 150,000-200,000 cards within 12 months of starting operations. Initially, the company would offer only premium segments cards, Platinum and World, powered by Mastercard, and the risk would be managed by the bank. The company is expected to announce its foray in the credit card business in a week.  (BS dt. 13.10.2011 p. 7)

N Shakar is new ECGC chief:
The Government has appointed Mr N Shankar as the Chairman and Managing Director of the Export Credit Guarantee Corporation of India. The appointment is for three years Mr Shankar is currently an Executive Director at the Export-Import Bank of India. (BL dt 13.10.2011 p.6)

Govt Plans Holding Co for public sector banks:
The government is planning to change the way it controls state run banks, so that these institutions can raise lots of additional capital without the government losing control of the banks. The finance ministry thinks that one common holding company to unite 21 state run banks could eliminate the ad-hoc last minute infusion of resources that has been the practice so far. To retain control over banks, it is thinking of innovations like golden shares or shares with differential voting rights. A holding company structure allow for innovation in capital infusion, the reason why nearly 85% of banks in the US have such a structure. The holding structure will allow the parent company to raise debt from abroad and from domestic markets, the government’s share is bound to go down. (ET dt 14.10.2011 p.11)

Allahabad Bank ties up with Aditya Birla Money for online services:
Allahabad Bank has tied up with Aditya Birla Money to provide its customers the convenience of investing in financial products online.  Aditya Birla Money is the broking, wealth management and retail distribution arm of Aditya Birla Financial Services Group. With online trading gaining momentum, the tie-up will enable Aditya Birla to tap the 27 million customer base of Allahabad Bank and provide them with online trading facilities, said a press statement issued by the bank. The bank’s accountholders will be able to benefit from the company’s single window interface to invest in equities, derivatives, commodities and IPOs.  (BL dt. 18.10.2011 p. 6)

Focus on core business, centre tells banks:
The government has asked public sector banks to concentrate on “core banking activities” and delay their plans of floating insurance or other businesses, which are capital-intensive, at least till the end of the current financial year. The move comes at a time when the government is facing a cash crunch, and has increased its market borrowing plan by Rs 53,000 crore in the second half of the current financial year. The move would impact banks like Syndicate Bank, Indian Bank, Central Bank of India and Indian Overseas Bank (IOB), which had expressed interest to float either insurance or asset management businesses, since these would now have to put their plans on hold. "In view of the current market conditions, banks are asked to conserve their capital and use the resources efficiently. Hence, banks are advised to stay away from any new business initiatives which would require substantial capital," said a source, on the condition of anonymity. (BS dt. 19.10.2011 p. 6)

Banking and Financial News October 2011 Part 1 of 3

FDI inflows rise sharply in first quarter:The net direct investment into India increased significantly by $7.2 billion during the April to June 2011 period, against $2.9 billion in the corresponding quarter last year, according to the Reserve Bank of India’s balance of payments data, released on Friday. Direct investment into India during the first quarter was to the tune of $12.9 billion ($6.1 billion in the corresponding quarter last year). This included investment in equities, which increased to $9.4 billion from $3.7 billion last year. Direct investment by India increased by $5.7 billion in the reporting period, against $3.2 billion in the year-ago period. However, portfolio investment in India was lower at $2.5 billion against $3.5 billion. (BL dt. 01.10.2011 p. 6)

Catholic Syrian Bank gets shareholder nod to hike share capital:The 90th annual general meeting of the Catholic Syrian Bank has unanimously passed special resolutions seeking shareholders’ approvals for increasing the bank’s share capital by way of issue of equity shares on preferential basis and/or through private placement mode. The AGM also passed a resolution for increasing the FII limit up to 49 per cent of the bank’s paid-up capital and also for establishing subsidiary or associate companies, firms, trusts, etc. (BL dt. 01.10.2011 p. 6)

Pilot study on mobile-enabled Kisan Credit Card launched:Pallavan Grama Bank, Region Rural bank sponsored by Indian Bank, has launched a pilot project on mobile-enabled Kissan Credit Card aimed at the farming community. This pilot project is funded by Nabard (National Bank for Agriculture and Rural Development). This project with a Rs 44.66 lakh grant assistance from Nabard taken up in Villupuram district, Tamil Nadu, aims at facilitating a paperless, doorstep banking transactions by farmers, who can use their mobile phones for various services such as purchase of farm inputs, cash withdrawal and deposit, said Mr T M Bhasin, Chairman and Managing Director of Indian Bank.  (BL dt. 03.10.2011 p. 4)

SBM unveils new initiatives to make customers 'happy':Aggrieved customers of State Bank of Mysore now need to just send an "unhappy" SMS to an exclusive number. Within seconds, an auto-generated message acknowledges the message receipt with a complaint number, the sender's mobile number, date and time of receipt of complaint etc. "The 'SMS unhappy' project is one of our measures to ensure a customer-friendly grievance redressal mechanism. It envisage a simple, paperless means to facilitate our customers to represent their complaints for an early and economical resolution," Mr Dilip Mavinkurve, Managing Director, State Bank of Mysore told news-persons while launching the green banking initiatives of the bank. The 'unhappy' message should be sent to 9900020002.  (BL dt. 03.10.2011 p. 3)

State-run banks may be allowed to revamp wages:State-run banks, which lag behind private sector and foreign rivals when it comes to staff compensation and HR policies, may soon get the freedom to raise their standards with the government set to speed up the revamp of personnel management at lenders controlled by it. The government has accepted most of the recommendations made by a panel headed by former Bank of Baroda chief Mr A.K. Khandelwal on HR policies at public-sector banks (PSBs) last year, according to two persons familiar with the development. They asked not to be named as the information is yet to be made public. “Once implemented, this will pave way to significant changes in the way employees are treated,” said one of the persons. State-run banks will be allowed to decide their own wage structure based on individual efficiency and the lender’s overall performance, besides officers getting variable pay and performance-based perks. (Mint dt 04.10.2011 p.9)

Union Bank arm to allow mutual fund deals on ATMs:Union KBC Asset Management Company Pvt Ltd (Union KBC), a subsidiary of Union Bank of India, is to introduce mutual fund-related transactions through ATMs. Initially, the facility christened as ATMfunds@Union Bank will be available to all the customers of Union Bank, who have a debit card. The facility will be launched nationwide this month, Mr G. Pradeepkumar, CEO of Union KBC, said here on Monday. It will also be launching on-line facilities for mutual fund-related transactions shortly. Union Bank KBC has also introduced UB KBC Prabodh, a series of investor awareness programs for mutual fund investors.  (BL dt 04.10.2011 p.9)

Mr. Kumar is CMD of Corporation Bank:Mr. Ajai Kumar has been appointed the new Chairman & managing Director of Corporation Bank,a Mangalore-based public sector unit. Mr Kumar, formerly an executive director of UCO bank took charge on October 1st. (FE dt  04.10.2011 p.18)

IRDA slaps Rs 5 lakh fine on HDFC Standard Life:The Insurance Regulatory and Development Authority (IRDA) has imposed a penalty of Rs 5 lakh on HDFC Standard Life Insurance Company for violating norms on claim settlements. The fine was imposed based on an enquiry conducted by the regulator with regard to a complaint filed by a policy holder on nonreceipt of death claims in 2009. “It is noticed that the claim was repudiated after a gap of around 12 months from the date of receipt of claim intimation.   (BL 07.10.2011 p.8) 

BoI opens branch in NewZealand: Public Sector lender Bank of India on Thursday said it had opened a branch in New Zealand. The bank will offer its full range of retail banking products, including savings and current accounts, cards, term and call deposits, mortgages and international funds transfers to its New Zealand customers, the bank said.   (BS dt 07.10.2011 p.4)

Another round of test to be held for bank Officer's posts:It is good news  for about two lakh job aspirants who missed the first Common Written Examination for recruitment of Probationary Officers and Management Trainees in 19 Public Sector banks held in September. The Institute of Banking Personnel Selection will conduct  a supplementary examination on November 13. Those who could not take the earlier examination can do so now. Despite clear instructions, some candidates came to the venues on September 18 with call letters but without photographs affixed, original fee receipts and identity proof. They were not allowed to write the exam, said Mr. M Balachandran, Institute Director. (BL dt 05.10.2011 p.6)

Allow housing finance cos to levy prepayment charges: Deepak Parekh:HDFC Chairman, Mr Deepak Parekh, disagrees with the present regulatory thinking on allowing complete waivers of prepayment charges. The Reserve Bank of India (RBI), which is the banking regulator, had recently floated a proposal that seeks to place a ban on levy of prepayment charges on floating rate loans. Banks have sought time to respond to this RBI proposal prohibiting recovery of prepayment charges on floating rate loans. The National Housing Bank (NHB), which is the housing finance regulator, has already stipulated that no prepayment penalty should be levied on a home-loan borrower when the prepayments are made from a customer’s own resources. Serious problems may arise if there is complete waiver of all prepayment charges, Mr Parekh said at a CAFRAL-NHB roundtable on housing finance on Friday. (BL dt 08.10.2011 p.6)

You can be jailed for default in fund transfer via ECS:If you pay your loans through the electronic clearing service, you better ensure there is sufficient fund in your account. Else, you can land up in jail, according to a latest circular from the Reserve Bank of India.Increasingly, people are opting to repay loans or other financial commitments electronically by giving a mandate to banks for monthly deduction from their accounts on a specified date instead of giving post-dated cheques. But many of these commitments are apparently not being honoured as there is no clarity on the punishment. However, in a circular sent to banks a couple of weeks ago, the apex bank communicated that the same set of rules against dishonour of cheques, according to Section 138 of the Negotiable Instruments Act, 1881, would apply for dishonour of electronic fund transfer instruction. “Section 25 of the Payment and Settlement Systems Act, 2007 accords the same rights and remedies to the payee (beneficiary) against the dishonour of electronic funds transfer instruction as are available to the payee under the Negotiable Instruments Act,'' the RBI said. (BL dt. 09.10.11 p 1)

Important General Awareness 8

• Nguyen Tan Dung : Vietnamese prime Minister Mr. Nguyen Tan Dung was elected for a second term.
• Hina Rabbani Khar : Mrs Hina Rabbani Khan became Pakistan's first woman foreign Minister on July 19, 2011. The 34 year old belongs to Pakistan's People's Party
• Nirupama Rao : India's Foreign Secretary Mrs. Nirupama Rao was appointed as India's ambassador to the United States on July 16, 2011.
• Sushil Kumar Modi : Bihar Deputy Chief Minister Mr. Sushil Kumar Modi was elected as the new Chairman of the Empowered Committee of State Finance Ministers of GST ( Goods and Service Tax )on July 18, 2011.
• Pradeep Kumar : Defence Secretary Mr. Pradeep kumar was sowrn in as the new Central Vigilance Commissioner (CVC) of India on July 14, 2011. He is 1972 IAS batch officer of Haryana cadre replacing Mr. P J Thomas.
• Mahendra Singh Dhoni : Has been declared man of the series in the home one day international series against England in which Indian Team beat England 5 games to Nil.
• Bangladesh's Highest honour for Indira Gandhi : Bangladesh's highest award- the Bangladesh Swadhinata Sammanona ( Bangladesh Freedom Honour )- conferred on the late Indira Gandhi for her outstanding contribution to the Bangladesh Liberation war.
• Magaysay Awards for 2011 : The Ramon magsasay Awards for 2011 were announced in Manila, the Philippines on July 27, 2011. Two Indians- Dr. Harish Hande and Ms. Nileema Mishra - were among the winners.
• Prahaar missile successfully test-fired : A new surface to surface missile named : Prahaar " was successfully test fired on July 21, 2011 for the first time from the integrated test Range at Chandipur, Orissa.
• New Defence Secretary : Mr. Sashikant Sharma, a 1976 batch IAS officer of Bihar Cadre  was appointed as new defence secretary.
• Sanskrit Day : September 5
• World Tourism Day : September 27

Important General Awareness VII

1. Income tax in India was introduced by ?

a) William Jones b) James Wilson c) Lord Macaulay d) Sir Charles Wood

2. Which of the following country is not a member of SAARC ?

a)Nepal b)Pakistan c) India d) Myanmar

3. The Indian Rupee symbol was designed by ?

a) D Udai Kumar b) Udai Chopra c) Rakesh Mohan d) D raju Reddy

4. Which of the following bank is limited to the needs of agriculture and rural finance ?

a) RBI b) NHB c) SBI d) NABARD

5. The food for work programme was renamed as

a) RLEGP b) IRDP c) NREP d) NREGA

6. Which of the following is the credit rating agency in India ?

a) CRISIL b) FITCH c) CARE d) ICRA e) All of these

7. Infrastructure financing committee is which of these ?

a) T Vikas Mohan b) V Kurien c) Deepak Parikh d) K V Kamat

8. Present SLR rate is ?

a) 26% b) 24% c) 6% d) 7%

9. SFIO stands for ?

a) Serious Fraud Investing Office
b) Super Financial Investment Office
c) Serious Financial Investing Office
d) None

10. Chinese largest which recently set up its operation in India ?

a) China Commerical Bank
b) Industrial and Commercial Bank of China
c) Shanghai commercial Bank
d) Honkong and Shanghai bank

11. Who among the following has been elected as first ever woman Prime Minister of Denmark ?

a) Jytte Anderson
b) Angella Merkel
c) Helle Thorning-Schmidt
d) KimY Clisters

12. Which is the biggest bank of France ?

a) BNP Pribas
b) HSBC bank
c) Barclays Bank
d) Rabobank

13. 44th Jnanpith Award has been awarded to which of the following ?

a) Akhlaq Shahryar b) Javed Hussian c) Anupam Kher d) Kirron Kher

14. First Ever formula one rance in India will be held where ?

a) Bangalore
c) Navi Mumbai
d) Noida
d) Chennai

15. Which of the following European Country has banned Muslims Friday prayers on streets ?

a) England
b) France
c) Poland
d) Germany

KEYS......

1.(a) 2. (d) 3. (a) 4 (d) 5. (c) 6. (e) 7. (c) 8. (a) 9. (a) 10. (b) 11. (c) 12. (a) 13. (a) 14. (d) 15. (b)

If your score is...

>12.... excellent
8-12...Needs further polishing
<8.. Need high improvement

Banking Glossary (D)

Daily Periodic Rate
    The interest rate factor used to calculate the interest charges on a daily basis. The factor is computed by dividing the yearly rate by 365 days.

Debit Card
    A plastic card issued by a Bank for cash withdrawal from a/c(s) through ATMs and payments at point of sale for purchases made. Debit Card denotes immediate debit to the customer's account.

Debt

An amount of money you owe to banks or credit issuers. More specifically, it is the amount of money that you have borrowed.

Debt Ratio / Debt Burden
  An amount of money you owe to banks or credit issuers. It is the percentage of your income that goes to paying your debts every month. Debt ratio usually gives a clear picture of your overall financial well-being. To calculate your debt ratio, first add up all your monthly income including take-home pay (after taxes). Then add up all your monthly payments for interest bearing loans and accounts, such as mortgages, student loans, credit cards and car loans. If you rent your home, include that amount, but do not include utilities and telephone charges because they can vary on a monthly basis. Finally, divide your monthly payments by your income. Multiply the result by 100 and that number is your debt ratio percentage.

*A low ratio is under 20%, which means that you are in good financial health and are doing a good job of managing your money.

*A moderate ratio is between 21% and 40%. This means that you should look carefully at your monthly payments and start decreasing your overall level of debt, including credit cards.

A high debt burden is over 40%. You should immediately stop accumulating debt and start looking for ways to decrease your debt or increase your income.


Default
    Failure to repay a loan according to the agreed upon terms.

Deferred Payment
    Payments put off to a future date or extended over a period of time. Interest will usually still accumulate during deferment.

Deferred Tax Assets

   Unabsorbed depreciation and carry forward of losses which can be set-off against future taxable income which is considered as timing differences result in deferred tax assets. The deferred Tax Assets are accounted as per the Accounting Standard 22.

Deferred Tax Liabilities
   Deferred tax liabilities have an effect of increasing future year's income tax payments, which indicates that they are accrued income taxes and meet definition of liabilities.

Delinquency
    When loan payments are not paid according to the terms of the agreement / promissory note. Late fees are often levied on delinquent accounts.

Deposit
    Money placed in a customer's account at a Bank / Financial Institution.

Deposit at Call
   Receipts issued to customers for amount deposited and repayable on demand. A facility normally extended for payment of earnest money deposits in tenders.

Depreciation
    Depreciation means a decline in the value of capital asset. It represents a cost of ownership and the consumption of an asset over time.

Derivative
    A derivative instrument derives its value from an underlying product. There are basically three derivatives :

a) Forward Contract : A forward contract is an agreement between two parties to buy or sell an agreed amount of a commodity or financial instrument at an agreed price, for delivery on an agreed future date. Future Contract - Is a standardized exchange tradable forward contract executed at an exchange. In contrast to a futures contract, a forward contract is not transferable or exchange tradable, its terms are not standardized and no margin is exchanged. The buyer of the forward contract is said to be long on the contract and the seller is said to be short on the contract.


b) Options : An option is a contract which grants the buyer the right, but not the obligation, to buy (call option) or sell (put option) an asset, commodity, currency or financial instrument at an agreed rate (exercise price) on or before an agreed date (expiry or settlement date). The buyer pays the seller an amount called the premium in exchange for this right. This premium is the price of the option.

c) Swaps : Is an agreement to exchange future cash flow at pre-specified Intervals. Typically one cash flow is based on a variable price and other on affixed one.

Detailed Statement
      The detailed statement of account depicts the details of the transactions in the account (ie. Loan disbursal, EMI credit, interest debit, unpaid return of EMI, penal interest debit, if any, etc.).

Disclosure
    Information pertaining to the account services, fees and regulatory requirements.

Disclosure Statement
    A disclosure statement details the actual cost of a loan, including all estimated interest costs and loan fees. For credit card accounts, this information may be found in the Card member Agreement.

Disposable Income
   Disposable income is the amount of income left after deductions such as income tax, pension contributions and personal insurance. It is often known as 'take home pay' - the actual pay a worker receives.

Documentation
   The legal or other papers to be signed and presented during the loan process. It is also called the loan papers.

Dormant Account (In operative account)
    A bank account in which there have not been any transactions for two years.

Doubtful Asset
  An asset would be classified as doubtful if it has remained in the substandard category for a period of 12 months. A loan classified as doubtful has all the weaknesses inherent in assets that were classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, - on the basis of currently known facts, conditions and values - highly questionable and improbable.

Down Payment
   The amount, which has to be paid by the borrower upfront while taking a loan. This amount is generally 10%-15% of the total fund required. It is also called the margin amount or margin money.

Draft
 A written, signed and dated order from one Branch of a Bank to another , to pay a sum of money to a specific party.

Drawee
  The person or entity on whom a draft / bill is drawn by the drawer.

Drawer
    The party who draws or issues the draft / bill. In a Letter of Credit it is the Beneficiary. The person who makes or draws a bill of exchange or cheque is called drawer.

Due Date
  The day a payment is due to a payee / creditor. After that date, a late fee can be charged, the payment can be recorded as late, and the account considered overdue / delinquent.

Important General Awareness VI

1. The country which achieved number one position in terms of medals tally in the 19th Commonwealth Games in New Delhi is

a) England  b) Australia  c) Germany  d) Malaysia

2. Bharti Airtel which is India largest telecom service provider has recently bought Zain. Zain is the biggest phone company of

a) Kuwait b) UAE c) Egypt d) Sudan

3. The chief election commissioner of India is

a) S Y Qureshi b) Navin Chawala c) N Gopalaswami d) Hamid Ansari

4. Naoto Kan is the Prime minister of which country

a) Iran b) Japan c) Argentina d) Brazil

5. International Youth day is observed on

a) August 9 b) 15 c) August 21 d) August 12

6. Lawn Tennis player Kim Clisters belongs to which country

a) Belgium b) Russia c) Yugoslavia d) Spain

7. Rangaswamy Cup is associated with

a) Hockey b) Chess c) Polo d) Squash

8. Kiran Kumar Reddy is the Chief Minister of which state in India

a) Karnataka b) Kerala c) Andhra Pradesh d) Orrisa

9. Highest sports award in India is

a) Arjuna Award b) Dronacharya Award c) Rajiv Gandhi Khel Ratna d) Bharata Ratna

10. Moin-ud-Dawala cup is associated with which sports

a) Cricket b) Football c) Tennis d) Golf

..........................
Keys :

1. B
2. A
3. A
4. B
5. D
6. A
7. A
8. C
9. C
10. A

Banking Glossary (C)

Canceled Cheque
	A cheque that has been not paid and cancelled by the drawer - Account holder.
Capital Adequacy Ratio
	Capital Adequacy Ratio is the capital to assets ratio which banks are required to maintain against risks. It is also known as Capital to Risk (Weighted) Assets Ratio (CRAR).
Capital Funds
	Equity contribution of owners. The basic approach of capital adequacy framework is that a bank should have sufficient capital to provide a stable resource to absorb any losses arising from the risks in its business. Capital is divided into different tiers according to the characteristics / qualities of each qualifying instrument. For supervisory purposes capital is split into two categories : Tier I and Tier II.
	Tier I Capital
	>	A term used to refer to one of the components of regulatory capital. It consists mainly of share capital and disclosed reserves (minus goodwill, if any). Tier I items are deemed to be of the highest quality because they are fully available to cover losses Hence it is also termed as core capital.
	Tier II Capital
	>	Refers to one of the components of regulatory capital. Also known as supplementary capital, it consists of certain reserves and certain types of subordinated debt. Tier II items qualify as regulatory capital to the extent that they can be used to absorb losses arising from a bank's activities. Tier II's capital loss absorption capacity is lower than that of Tier I capital.
Capital Reserves
	That portion of a company's profits not paid out as dividends to shareholders. They are also known as undistributable reserves and are ploughed back into the business.
Card Holder
	Cardholder is a person who owns a debit or credit card issued by a credit card company, financial institution or bank.
Card Issuer
	A bank, financial institution, credit union, or agency that issues a credit card to public or its members is called a card issuer.
Card member Agreement
	The issuer's  terms and conditions relating to your credit card account. The Card member Agreement is between the customer and the card issuing company and is a legal document. (When you sign up for a credit card understand the terms and Conditions).
Carpet Area
	The area inside the walls of a room, measured from wall to wall including the door jams. In simple terms it is the area usable as floor level inside a room.
CASA Deposit
	Deposit in bank in current and Savings account.
Cash Advance (Credit Card)
	Applies to an advance taken against a credit card account. The advance may be through a cash withdrawal at an automated teller machine, bank teller or by use of a convenience check. This cash is an instant loan from your credit card account. The credit card company will apply finance charges from the day you take the advance until the day you pay it off. A transaction fee may also be charged based on the amount of your withdrawal.
Cash Advance Fee
	A one-time fee for cash advances in addition to normal finance charges. This fee is usually a percentage of the advance amount.
Cash Back Credit Card
	It is a special type of reward credit card, which pays back in cash. Whenever you use your cash back credit card to make purchases, a percentage of it is returned back to you. The cash back rewards can be redeemed as gift vouchers, or hard cash.
Cash Reserve Ratio (CRR)
	Cash Reserve Ratio is the amount of mandatory funds that commercial banks have to keep with RBI. It is always fixed as a percentage of total demand and time liabilites.
Certificate of Title (Title Deed)
	An official document, showing the ownership or title of the property in question is called the certificate of title / title deeds. It describes various details about the property such as the area, location, registered owner and other factors and charges related to the property.
Certificate of Deposit (CD)
	A time deposit that is payable at the end of a specified term. CDs generally pay a fixed interest rate and generally offer a different interest rate than other types of deposit accounts. If an early withdrawal from the CD prior to the end of the term is permitted, a penalty is usually assessed. CD is sold at discount value and being a money market instrument, can be transferred to other person through negotiaion.
Certified Cheque
	A cheque for which the bank guarantees payment. Banks in India do not generally, certify cheques.
Charge Back
	A credit card transaction, which is returned or not honored, is called a charge back. Usually done by the credit card holder in response to faulty products, credit card fraud, a dispute or non-compliance with the rules and regulations, charge back restores the funds back with the credit card.
Charge back Period
	It is the time period from a particular credit card transaction within which, the credit card holder must initiate a charge back.
Charge Card
	A card that requires full payment of the balance before the end of the billing period. It is not a line of credit and no interest is charged.
Cheque for Collection
	An instrument drawn on another Bank or Branch tendered by a customer of a Bank or by his representative, at the branch or in the drop box provided for the purpose for collecting the amount of the cheque.
Cheque Purchase
	Bank may, at its sole discretion, purchase local / outstation cheque tendered for collection at the specific request of the customer or as per prior arrangement subject to levy of service charges.
Cheque Return fee / EMI return fee
	This is a 'service charge' that would be levied in the account due to return of cheque sent for collection / EMI cheque. Usually, both the collecting bank and paying bank leavy cheque return charges on their customers.
Clear Title
	When the property in question is free from any doubt, is not disputed and is not having any encumbrances it is said to have a clear title.
Co-borrower
	A person who applies for any loan with the primary borrower and takes on the responsibility for repayment of the debt. This is done to improve the eligibility for loan and simultaneously mitigating the risk of banks who can exercise the option of recovery from both parties- jointly as well as severally.
Co-Branded Card
	It is a special type of credit card which is sponsored by both the credit card issuing company and the participating retail company or vendor. Co-branded credit card carries special deals and savings from the participating merchants.
Collateral
	An asset pledged to a lender to guarantee repayment. Collateral could include savings, bonds, insurance policies, jewelry, property or other items that are pledged to pay off a loan if payments are not made according to the contract. Collateral is not required for unsecured credit card accounts.
Collected Balance
	The balance in a deposit account, not including deposited items that have not yet been paid, or collected. See also Glossary term, "account balance." It is also known as cleared balance.
Combined Balance
	Any combination of balances from linked accounts, such as savings, current and CDs. Can be used to meet the balance required to waive the monthly fee on some accounts.
Commercial Real Estate
	Commercial real estate is defined as "fund based and non-fund based exposures secured by mortgages on commercial real estates (office buildings, retail space, multi-purpose commercial premises, multi-family residential buildings, multi-tenanted commercial premises, industrial or warehouse space, hotels, land acquisition, development and construction etc.)"
Commitment Fee
	It is an interest, which is charged on a loan applicant if he doesn't withdraw the sanctioned loan within a stipulated time period.
Common Areas
	Areas such as staircase, lifts, sanitation ducts, electricity ducts, air-conditioning ducts etc. kept aside for common use by the property owners. This area is generally divided proportionately in relation to the size of property and charged accordingly.
Compound Interest
	Interest which is calculated not only on the initial principal but also the accumulated interest of prior periods. The more frequently interest is compounded, the higher the effective rate. In India interest on loans and advances is compounded on monthly basis as per RBI order.
Consolidation Loan
	If you owe money to several creditors, you can combine your payments and balances into a single account with one creditor. This can be done in several ways. For example, you can transfer several high interest credit card balances onto one card with a lower rate. If you own a home, you can consolidate your debt with a low-interest home equity loan. Or, you can get a loan specifically designed for this purpose.
Contact Point Verification
	This refers to contact by bank staff on the phone numbers / address provided by the customer to establish correctness of the contact points. CPV is an important parameter in banks and a negative verification can lead to decline of the banking facilities sought.
Contract
	A written, oral, partly written partly oral or behavioral agreement between two or more parties or people, which is legally binding, can be termed as a contract.
Convexity
	This represents the rate of change of duration. It is the difference between actual price of a bond and the price estimated by modified duration.
Conveyance
	It is the process of legally transferring the ownership of interest in land.
Co-sign
	To sign a credit agreement with someone and agree to share the debt with that person or assume the debt if the other person defaults and doesn't pay.
Co-signer (Co-obligant)
	A co-signer is a person who signs a loan or credit card with the primary applicant, pledging to be responsible for repaying the loan or debt in the event the applicant is unable.
Cost Income Ratio (Efficiency Ratio)
	The cost income ratio reflects the extent to which non-interest expenses of a bank make a charge on the net total income (total income - interest expense). The lower the ratio, the more efficient is the bank. (Formula : Non interest expenditure / Net Total Income x 100)
Coverage Ratio
	Equity minus net NPA divided by total assets minus intangible assets.
CRAR (Capital to Risk Weighted Assets Ratio)
	Capital to risk weighted assets ratio is arrived at by dividing the capital of the bank with aggregated risk weighted assets for credit risk, market risk and operational risk. The higher the CRAR of a bank the better capitalized it is.
Credit Appraisal
	This is the process for evaluating credit worthiness of any loan proposal. This helps establish the risks involved in the proposal and debt servicing capacity of the borrower. A wide range of criteria viz. age of borrower, credit score, existing loan obligations, nature / sources / stability of income etc. are taken into account. Credit History of the person is an important criteria for sanction of credit.
Credit Available
	The amount of unused credit that is available. Your credit available is your outstanding balance subtracted from your total credit line. For example, if your credit line is  Rs.50,000  and you have an outstanding balance of Rs.40,000, your credit available is Rs.10,000, which means that you have Rs.10,000 of credit left that you can use to make purchases with your credit card.
Credit Bureau (Credit Information Company)
	A credit bureau is a company that collects and shares information about how you manage your credit. Many banks and credit issuers regularly update the credit bureaus about your payment habits and how much money you owe. Potential creditors may check your credit report when you apply for a loan or a credit card. Reporting to at least one Credit Bureau is mandatory in India.
Credit Card Debt
	The total unpaid balances on all of your credit cards (not to be confused with the minimum amount you owe each month).
Credit Criteria
	Factors used by lenders to rate the credit worthiness or ability to repay debt. They may include the following : income, amount of personal debt carried, number of accounts from other credit sources and credit history. A lender is free to use any credit-related information in approving or denying a credit application
Credit Enhancement
	These are the facilities offered to an SPV to cover the probable losses from the pool of securitized assets. It is a credit risk cover given by the originator or a third party and meant for the investors in any securitization process.
Credit History
	A financial profile of any person created by credit rating agencies based on how he repays his bills, clears his debt and the amount a person owes to various credit card companies and other lenders.
Credit Limit
	It is the maximum amount of money one can draw on his account based on prior sanction or approval from the bank. Borrowing or drawing limit fixed by a bank for a customer depending on his credit history, repaying capacity and relationship with bank.
Credit Management
	The way you handle the money you borrow from banks or credit issuers. A good credit management will ensure optimum utilization of borrowed funds and meet repayment obligations on time.
Credit Report
	A credit report is a record of all of the information that credit bureau have collected about the way you've managed your finances over the last 5 years. It is the official record of how you pay the money you owe to your creditors.  The information on your report can either qualify or disqualify you from obtaining credit cards, mortgages, loans etc. An individual can obtain credit report on himself from the credit bureau on payment of a fee.
Credit Risk
	The risk that a party to a contractual agreement or transaction will be unable to meet its obligations or will default on commitments. Credit risk can be associated with almost any financial transaction. BASEL-II provides two options for measurement of capital charge for credit risk :
	1.	Standardised Approach (SA) : Under the SA, the banks use a risk-weighting schedule for measuring the credit risk of its assets by assigning risk weights based on the rating assigned by the external credit rating agencies.
	2.	Internal rating based approach (IRB) : The IRB approach, on the other hand, allows banks to use their own internal ratings of counterparties and exposures, which permit a finer differentiation of risk for various exposures and hence delivers capital requirements that are better aligned to the degree of risks. The IRB approaches are of two types :
		a)	Foundation IRB (FIRB) : The bank estimates the Probability of Default (PD) associated with each borrower, and the supervisor supplies other inputs such as Loss Given Default (LGD) and Exposure At Default (EAD).
		b)	Advanced IRB (AIRB) : In addition to Probability of Default (PD), the bank estimates other inputs such as EAD and LGD. The requirements for this approach are more exacting. The adoption of advanced approaches would require the banks to meet minimum requirements relating to internal ratings at the outset and on an ongoing basis such as those relating to the design of the rating system, operations, controls, corporate governance, and estimation and validation of credit risk components, viz., PD for both FIRB and AIRB and LGD and EAD for AIRB. The banks should have, at the minimum, PD data for five years and LGD and EAD data for seven years. In India, banks have been advised to compute capital requirements for credit risk adopting the SA.
Credit Risk Mitigation
	Techniques used to mitigate the credit risks through exposure being collateralised in whole or in part with cash or securities or guaranteed by a third party.
CRR
	Cash reserve ratio is the cash parked by the banks in their specified current account maintained with RBI.
Credit-worthy
	You are judged to be qualified to have credit.
Current Account
	An account used for commercial purpose. It attracts no rate of interest and is generally charged by the bank with maintenance charges. There is no limit to the number of transactions in this type of account.
Current Exposure Method
	The credit equivalent amount of a market related off-balance sheet transaction is calculated using the current exposure method by adding the current credit exposure to the potential future credit exposure of these contracts. Current credit exposure is defined as the sum of the positive mark to market value of a contract. The Current Exposure Method requires periodical calculation of the current credit exposure by marking the contracts to market, thus capturing the current credit exposure. Potential future credit exposure is determined by multiplying the notional principal amount of each of these contracts irrespective of whether the contract has a zero, positive or negative mark-to-market value by the relevant add-on factor prescribed by RBI, according to the nature and residual maturity of the instrument.
Custodian
	An entity, usually a bank that actually holds the receivables as agent and bailee of the trustee.
Custodial Account
	An account created for the benefit of a minor with an adult as the custodian.

Banking Glossary (B)

Balance Transfer
	Transferring balances from one credit card to another, usually to take advantage of a lower interest rate. Transfers are limited to the available credit on the receiving card.
Banking Book
	The banking book comprises assests and liabilities, which are contracted basically on account of relationship or for steady income and statutory obligations and are generally held till maturity.
Bank Draft
	An instrument issued by one branch of a bank on another branch of the bank containing an order to pay a certain sum on demand to the person named on the draft. It is used to transfer funds and to settle outstanding balances between banks, or to provide a customer with funds payable at a bank in a different location. Bank drafts are valid for certain period, generally, for 6 months, as indicated over face of draft.
Banker's Cheque
	A cheque issued by a branch of a bank against consideration received. Banker's cheque are valid for a certain period as indicated on the face of the cheque. (also called Pay Order).
Bankruptcy
	A legal action, in which a person who is not able to repay his loans satisfactorily, is declared bankrupt by a court order. The collateral or security in this case becomes liable to be attached by administration to satisfy creditors.
Bankruptcy Remote
	The legal position with reference to the creation of the SPV should be such that the SPV and its assets would not be touched in case the originator of the securitization goes bankrupt and its assets are liquidated.
Base Rate
	New reference rate used by banks for loan pricing w.e.f July 2010. Base rate captures cost of deposits, cost of capitals and unallocable (common) overheads. Banks are not allowed to lend base rate except for certain specified category or borrowers.
BASEL Committee on Banking Supervision
	The BASEL Committee is a committee of bank supervisors consisting of members from each of the G10 countries. The Committee is a forum for discussion on the handling of specific supervisory problems. It coordinates the sharing of supervisory responsibilities among national authorities in respect of banks' foreign establishments with the aim of ensuring effective supervision of banks' activities worldwide.
BASEL Capital Accord
	The BASEL Capital Accord is an Agreement concluded among country representatives in 1988 to develop standardised risk-based capital requirements for banks across countries. The Accord was replaced with a new capital adequacy framework (BASEL II), published in June 2004. BASEL II is based on three mutually reinforcing pillars hat allow banks and supervisors to evaluate properly the various risks that banks face. These three pillars are :
	>	Minimum capital requirements, which seek to refine the present measurement framework
	>	supervisory review of an institution's capital adequacy and internal assessment process;
	>	market discipline through effective disclosure to encourage safe and sound banking practices
Basis Point
	A unit of measurement which is equal to 1/100th of 1%. This is used to measure changes in interest rates, stock-market indices or yield on fixed income securities. For example, if an interest rate is reduced by 50 basis points it means an effective reduction of 0.5%.
Bill Discounting
	Under this type of lending, Bank takes the bill drawn by borrower on his (borrower's) customer and pay him immediately deducting some amount as discount / commission. The Bank then presents the Bill to the borrower's customer on the due date of the Bill and collect the total amount. If the bill is delayed, the borrower or his customer pay the Bank a pre-determined interest depending upon the terms of transaction.
Bill Pay Service
	Bill Pay is a service of Online Banking from bank that allows you to pay your bills online. In addition you can elect to receive e-Bills - electronic versions of your paper bills - from your bank credit card and a variety of companies currently offering e-Bills.
Biller
	A service provider who bills his / her services at specified intervals and has facilitated receipt of payment from his customers through online banking.
Billing Cycle
	The number of days between your last statement date and your current statement date. Most service providers follow a monthly billing cycle.
Billing Statement
	A monthly bill from your credit card issuer which describes and summarizes the activity on your account including the outstanding balance, purchases, payments, credits, finance charges and other transactions for the month.
Borrower
	The person / legal entity who is taking the loan with the promise to repay it back with interest under the credit or loan agreement.
Bounced cheque
	A cheque, which a bank returns unpaid because there is not enough available balance in the account or for other reasons.
Broker
	Broker is an individual who, for a commission or a fee, brings two parties together and assists in negotiating contracts between them.
Budget
	The financial record you use to keep track of the money you earn, how much you spend and what you spend it on. Your budget also includes savings and how much you pay to your creditors.

Banking Glossary (A)

Acceptance Letter
	Acceptance letter is the letter that a borrower or applicant gives to the lender after reading the terms of the loan. This letter denotes the borrower's willingness to accept the loan offer within a particular time frame.
Account Balance
	Opening Account Balance / Beginning of the Day (BOD) Balance : The balance in an account at the beginning of each business day; includes all deposits and withdrawals that were posted from the previous night, whether or not funds have been collected.
	Closing Account Balance / End of the Day (EOD) Balance : The account balance computed at the end of the business day, and is the adjusted balance of the credits and debits during the business day in the account of the customer.
Account Statement
	Periodic statement of all the debit and credit transactions on an account for a given statement cycle.
Acquirer
	Acquirers are banks and financial institutions that collaborate with businesses to accept credit / debit card payments.
Active Account
	A bank account in which there are regular transactions. A bank account that is not dormant or inoperative or under an attachment order of the court or enforcement authorities.
Additional Cardholder
	Another member added to an existing card thus extending its usage is called an additional cardholder. Thus by adding an additional cardholder the existing cardholder allows him / her to make purchases and use the credit card. However, the responsibility to repay the monthly outstanding balance rests with the original (principal) cardholder.
Administrative Fee
	A one time non-refundable levy to bank's customers for meeting expenses related to appraisal of loan proposals.
Advance EMI
	Number of equated monthly installments, paid in advance at the time of disbursal of loan.
Affinity Card
	Credit cards linked to special organizations like sports clubs, exclusive clubs and charities. Affinity credit cards can also help raise funds, when a part of income from every transaction goes toward the benefit of relevant organization.
ALCO
	Asset-Liability Management Committee (ALCO) is a strategic decision making body, formulating and overseeing the function of asset liability management (ALM) of a bank.
ALM
	Asset Liability Management (ALM) is concerned with strategic balance sheet management involving all market risks. It also deals with liquidity management, funds management, trading and capital planning.
Amortization
	Amortization is the repayment of Principal and Interest components of a Loan, over a period of time. Certain category of expenses or charges are also amortized over a period of time.
Annual Fee
	An annual amount charged by the credit card companies to maintain the credit card.
Annual percentage yield (APY)
	A percentage rate reflecting the total amount of interest paid on a deposit account (savings, CDs etc.), based on the interest rate and the effect of interest compounding for one year.
Anywhere Banking
	Customer can deposit / withdraw cash at any branch other than the branch in which he holds the account. Anywhere banking frees the customer from geographical boundaries and limitations and gives the flexibility to the customer to use his account across the board.
Application Form
	A form to be filled in and signed as per the Bank's requirements to avail Banking facilities. Requirement of details to be filled in will vary for each facility. Applications may also require certain specified documents also to be attached.
Arrears Outstanding
	The arrears outstanding comprises of the unpaid EMI's and other charges, if any, levied in the account.
Asset
	Cash or anything you own that can be turned into cash. This includes property, goods, savings or investments.
	These are things that people own such as buildings, vehicles, shares and money in the bank. The opposite is liabilities. For a bank, its assets are mainly the loans it makes
ATM
	Acronym for automated teller machine, a machine at a bank branch or other location, which enables a customer to perform basic banking activities (checking one's balance, withdrawing or transferring funds) even when the bank is closed.
Attestation
	Authentication of signatures of a customer of the branch required by the customer for any legal purposes.
Automatic Funds Transfer
	An arrangement that moves funds from one account to another automatically on a pre-arranged schedule; for example, every payday or once a month.
Automatic Payment
	An arrangement that authorizes payments to be deducted automatically from a bank account (usually a savings / current account) to pay bills (such as insurance payments, rent, mortgage or loan payments). Payments are usually scheduled to be made on a certain day of the month.
Available Balance
	The available balance is the account balance in the account that is available for immediate use at any given point of time
Available Credit
	Available credit is your credit limit minus your current balance. It is the unused portion of your credit line.
Available for Sale (AFS)
	The securities available for sale are those securities where the intention of the bank is neither to trade nor to hold till maturity. These securities are valued at the fair value which is determined by reference to the best available source of current market quotations or other data relative to current value.
Average Cost
	(Interest expended on deposits and borrowings / Average interest bearing liabilities) x 100
Average daily Balance
	The average balance in a deposit account, equals the sum of the daily account balances during an accounting period, usually a monthly or a quarterly cycle, divided by the number of days in the accounting period. Banks normally specify certain minimum average daily balance to be maintained in current and savings accounts.
Average Yield
	(Interest and discount earned / average interest earning assets) x 100