BULLET POINTS - PART 007(Banking)

BULLET POINTS - PART: 007

01.       The first bank in India was set up on modern lines in 1770 by an agency house

02.       Bombay stock exchange was made functional as early as 1870

03.       The first life insurance company in the country – Oriental Life Insurance company

04.       Oriental Life insurance company was established in 1818

05.       First General (non life) Insurance company was set up in 1850

06.       There were 566 private commercial banks in the country with 4151 branches in 1951

07.       There are 32 foreign banks in the country

08.       Foreign banks have around 310 branches all over the country

09.       The Unit trust of India came into existence in 1964

10.       Export Risk Insurance Corporation was set up in July 1957

11.       Export Risk Insurance Corporation was converted as ECGC in January 1964

12.       ECGC – Export Credit Guarantee Corporation

13.       The deposit insurance corporation was set up in 1962

14.       The fourteen banks which were nationalized on 19.7.1969 were – Central Bank of India; Bank of Maharashtra; Dena Bank; Punjab National Bank; Syndicate Bank; Canara Bank; Indian Bank; Indian Overseas Bank; Bank of Baroda; Union Bank; Allahabad Bank; United Bank of India; United Commercial Bank and Bank of India

15.       Six banks were nationalized during the second stage on 15.4.1980

16.       Regional Rural Banks were set up in 1975

17.       NABARD was established in 1982

18.       NABARD – National Bank for Agriculture and Rural Development

19.       Securities and Exchange Board of India was established in 1988

20.       Licensing for new private sector banks was issued in 1993

21.       Indian financial system is composed of three components – financial assets, financial markets and financial intermediaries or institutions

22.       Financial assets are classified into primary or direct securities and secondary or indirect securities

23.       Financial markets can be classified into money market and capital market

24.       Financial intermediaries can be classified into organized and unorganized

25.       Organized financial intermediaries can be classified into banking institutions and non banking financial institutions

26.       Primary securities are those securities which represent financial claims against real sectors

27.       Real sectors represent bills, bonds, shares, book debts etc.

28.       National savings certificates, infrastructure bonds, Indira Vikas Patras, Krishi Vikas Patra etc. are examples of financial assets

29.       Money market is the center of dealings mainly of short term character in monetary assets

30.       The capital market deals in long term funds, both debt and equity

31.       Financial instruments of the capital market are classified into the following two categories namely; government or gilt edged securities and corporate securities

32.       The main financial instruments of corporate sector are – shares, debentures, public deposits and loan from institutions

33.       Banking commission was established in 1972

34.       Capital market is a market which deals in long term funds

35.       Regional Rural Banks fall within supervisory purview of RBI

36.       IRDA is the regulatory authority for all insurance companies in the country including LIC of India

37.       IRDA has its headquarters at Hyderabad

38.       Mutual funds fall within the supervisory purview of SEBI

39.       Export and Import Bank of India does not fall within the purview of development banks

40.       State Bank of India was formulated as per SBI act 1955

41.       ICICI Bank Limited is the first Universal Bank established in the country

42.       New Bank of India merged with Punjab National Bank

43.       The central monetary authority of the country is Reserve Bank of India

44.       Scheduled commercial banks are banks which have been included in the second schedule of RBI act, 1934; registered under companies act and got licence as per Banking Regulations act 1949

45.       When the banks entertain in dealing with insurance business, it is called as bankassurance

46.       Universal banking is the roof under which various banking products are available

47.       When the repayment period of any loan is upto 36 months, the loan is called as short term loan

48.       When the repayment period is between 37 to 84 months, such loans are called as medium term loans

49.       When the repayment period is more than 84 months, they are called as long term loans

50.       In the case of Regional Rural Banks, the contribution structure between Government of India, State Government and Sponsoring banks are in the ratio of 50:15:35