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The Latest Word or Terms in 2013 Related to the Banking Sector in India

Written By Winston Bensford on Friday, December 13, 2013 | 9:54 PM

Specific Commercial Instruments used is banking Industries

latest banking terms WHITE LABEL ATMs

• RBI permitted (on June 20,2012),the non-bank entities incorporated in India under the companies act 1956,to set up own ATMs in India.• ATMs operated by Non-bank entities• Eligibility for operating white label ATMs – Entities must have a net worth of Rs.100 crore• Acceptance of deposits at WLAs ,not to be permitted.

MICR

• Full form is – Magnetic Ink Character Recognition• Contains 9 digits• First three - city code• Middle three - bank code • Last three – branch code

BANKING OMBUDSMEN

• Banking Ombudsmen resolve the problem of customer’s complaint regarding bank.
• They are appointed by RBI
• There are total 15 ombudsman appointed across India
• They do not charge any fee
• A banking ombudsman can allow maximum compensation of – Rs.10 lakh
• If ombudsman is unable to resolve the query ,the case is transferred to – apellate authority

COMMERCIAL PAPERS

• It is a money market security• It is unsecured promissory note• It is a negotiable instrument• Its minimum maturity period is 7 days• Its maximum maturity period is 1 year• It is issued in the multiples of Rs.5 lakh

CTS

• Truncation is the process of stopping the flow of the physical cheque issued by a drawer at some point with the presenting bank en-route to the drawee bank branch.• It is a project undertaken by RBI for faster clearing of cheques.• CTS is basically an online image-based cheque clearing system where cheque images and MICR data are captured at the collecting bank branch and transmitted electronically.• Starting 1 August 2013 only CTS-2010 compliant cheques would be accepted for clearing.• On 17 July 2013 the RBI extended the deadline to 31 December 2013. 

EQUATED MONTHLY INSTALMENT

• "A fixed payment amount made by a borrower to a lender at a specified date each calendar month. Equated monthly installments are used to pay off both interest and principal each month, so that over a specified number of years, the loan is paid off in full."

KISAN CREDT CARD

• The full form of KCC – Kisan Credit Card • KCC scheme was intoduced by – GOI , RBI , NABARD• KCC scheme was introduced in the year – 1998• The objective of KCC is – to fulfill the credit needs of farmers during cropping season through banking system.

NSAP

• The National Social Assistance Programme(NSAP) which came into effect from 15th August,1995 represents a significant step towards the fulfillment of the Directive Principles in Article 41 of the Constitution.• The program introduced a National Policy for Social Assistance for the poor and aims at ensuring minimum national standard for social assistance in addition to the benefits that states are currently providing or might provide in future. • NSAP at present, comprises of Indira Gandhi National Old Age Pension Scheme (IGNOAPS), Indira Gandhi National Widow Pension Scheme (IGNWPS), Indira Gandhi National Disability Pension Scheme (IGNDPS), National Family Benefit Scheme (NFBS) and Annapurna.

DEMAT

• Full form of DEMAT – Dematerialization• DEMAT is mandatory for – dealing in shares• It keeps the information of share holdings of individual in electronic form• With how much minimum balance it is opened- zero balance(the account contains only data of shares,no balance)

Sample Question about banking GA.

01.What is a bank ?
Ans-A bank is a financial which accept deposit from the public and lend money to the customers and the busness community.They also provide a lot of financial services and promote a lot of financial products. As a key component of the financial system, banks allocate funds from savers to borrowers in an efficient manner.

02.What is RRB?
Ans-Regional Rural Banks were established with an objective to ensure sufficient institutional credit for agriculture and other rural sectors. The RRBs mobilize financial resources from rural / semi-urban areas and grant loans and advances mostly to small and marginal farmers, agricultural labourers and rural artisans. The area of operation of RRBs is limited to the area as notified by Govt of India covering one or more districts in the State.

03.What is Retail Banking
Ans-Banking services for individual customers is known as retail banking. Banks provide various types of advances and loans to individual customers. It constitutes the major part of banking transactions.

04.What is Merchant Banking
Ans-A bank that deals mostly in international finance, long-term loans for companies and underwriting. Merchant banks do not provide regular banking services to the general public.

05.What is Online Banking
Ans-Online banking (or Internet banking) is fecility to access one’s bank account through internet. It also
allows customers to conduct various financial Transactions.

06. What is Mobile Banking
Ans-Mobile Banking is a service that allows you to do banking transactions through your mobile
phone with the help of a login id and password.

07.What is E-Governance?
Ans-E-Governance is the public sector’s use of information and communication technologies with the aim of improving information and service delivery, encouraging citizen participation in the decision-making process and making government more accountable,transpar­ent and effective.

08.What is Right to information Act?
Ans-The Right to Information act is a law enacted by the Parliament of India giving citizens of India access to records of the Central Government and State governments.TheAct applies to all States and Union Territories of India, except the State of Jammu and Kashmir - which is covered under a State-level law. This law was passed by Parliament on 15 June 2005 and came fully into force on 13 October 2005.

09.Credit Rating Agencies in India?
Ans-The credit rating agencies in India mainly include ICRA and CRISIL. ICRA wasformerly referred to the
Investment Information and Credit Rating Agency of India Limited. Their main function is to grade the
different sector and companies in terms of performance and offer solutions for up gradation. The credit
rating agencies in India mainly include ICRA and CRISIL(Credit Rating Information Services of India Limited)

10. What is demand Draft?
Ans-A demand draft is an instrument used for effecting transfer of money. It is a Negotiable Instrument. Cheque and Demand-Draft both are used for Transfer of money. You can 100% trust a DD. It is a banker's
check. A check may be dishonored for lack of funds but a DD can not. Cheque is written by an individual
and Demand draft is issued by a bank.


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