BULLET POINTS PART 3 (Banking Awareness)

BULLET POINTS in Banking Awareness

BULLET POINTS - PART: 003

01.         EXIM bank operates various lending programs for promotion of exports of engineering and capital goods and related services from India

02.         EXIM - Direct financial assistance to exporters of plant, equipment, machinery and related services in the form of medium term credit

03.       EXIM -Overseas investment finance to Indian promoters of overseas joint ventures to support their equity investments.

04.         EXIM - Overseas buyers’ credit to foreign importers for import of Indian capital goods and related services

05.       National Housing bank was established on 9.7.1988

06.         Vide National housing bank act, 1987 to function as a principal agency to promote housing finance institutions and to provide financial and other support to such institutions.

07.         NHB – issues directions to housing finance institutions to ensure their growth on sound lines

08.       Make loans and advances and render any other form of financial assistance to scheduled banks and housing finance institutions or to any authority established by or under any central, state or provincial act and engaged in slum improvement

09.         Formulate schemes for the purpose of mobilization of resources and extension of credit for housing.

10.       Banks can accept both demand and time deposits from the public

11.         Interest payable on savings bank accounts is not regulated by Reserve Bank of India

12.       RBI is the sole authority to issue and manage currency in India

13.         Accounts are allowed to be operated by cheques in respect of both savings bank accounts and current accounts

14.         Normally no interest is paid on current deposit accounts

15.         The usual deposit schemes of the banks are current accounts, savings bank accounts and term deposit accounts

16.       Fixed deposits and recurring deposits are repayable after an agreed period

17.         Financial inclusion means provision of financial services namely, payments, remittances, savings, loans and insurance at affordable cost to persons not yet given the same

18.         Sale of insurance policy to a depositor is known as cross selling by banks

19.         When a bank returns a cheque unpaid, it is called as dishonor of the cheque

20.         Mortgage is a security on immovable property for a deposit received by a bank

21.         Accounts in which shares of various companies are traded in electronic form is called as demat accounts

22.         NABARD has sought an emergency fund of Rs. 1000 crore from banks to tackle acute liquidity crisis, which is coming in the way to give loans to micro borrowers

23.         Distribution of insurance products and insurance policies by the banks as corporate agencies is known as bankassurance

24.         The term L denote “Liquidity” in term “LAF” as referred every now and then in relation to monetary policy of RBI – liquidity

25.         The full form of FINO – a term frequently used in newspapers is called as – Financial Information Network and Operation Limited

26.         The rate of inflation increases when the purchasing power of money decreases

27.         Interest on savings bank account is now calculated by banks on daily product basis

28.         A centralized data base with online connectivity to branches through internet as well as ATM network which has been adopted by almost all major banks of the country is known as core banking

29.         Treasury bills, commercial paper, certificate of deposit, shares and bonds are called as money market instruments

30.         Repurchase agreement is not money market instrument

31.         With a view to facilitate payment of balance in the deposit account to the person named by the depositor without any hassles in the event of death of the account holder, the following facility has been introduced for bank accounts in our country – nomination

32.       Banks in our country normally publicize that additional interest rate is allowed on retail domestic term deposits of – senior citizens

33.         CRR – cash reserve ratio

34.       SLR – statutory reserve ratio

35.       EXIM bank – export and import bank of India

36.       NABARD – National Bank for Agriculture and Rural development

37.       SIDBI – small industries development bank of India

38.       EDP – entrepreneurship development programme

39.       SMERA – SME rating agency of India Limited

40.       NBFC – Non banking finance companies

41.       NEFT – National electronic funds transfer

42.       RTGS – real time gross settlement

43.       Narrow banking is a system of banking under which a bank places its funds only in 100 percent risk free assets with maturity matching for its liabilities.

44.       NPA – non performing assets

45.       CAR means capital adequacy ratio

46.       KYC means know your customer guidelines

47.       IPO – Initial public offer

48.       QIB – qualified institutional buyers

49.       SEBI – securities and exchange board of India

50.       MICR – magnetic ink character recognition

51.       NSE – national stock exchange

52.       BCSBI – Banking codes and standards board of India

53.       FEDAI – Foreign exchange dealers association of India

54.       ALCO – asset liability committee

55.       ALM – asset liability management

56.       FCNR – foreign currency non resident deposit accounts

57.       CDRS – Corporate debt restructuring

58.       IDRBT – Institute for development and research of banking technology

59.       YTM – yield to maturity

60.       IRDA – Insurance Regulatory and Development Authority of India