BULLET POINTS- PART: 009
01. Banking
regulation act, 1949 does not at all apply to – primary agricultural credit
societies and cooperative land mortgage banks
02. As per the
provisions of section 12 of the Banking Regulations act, 1949, the minimum
ratio between the authorized, subscribed and paid up capital of a banking
company should be 4:2:1
03. Under the
provisions of section 35(b) (ii) of the Banking Regulation Act, 1949,
inspection of branches of Indian banks situated abroad is to be carried out by
– RBI
05. The New
Private Sector Banks have been authorized to be set up under the new
liberalization policy and the minimum paid up capital should be – Rs. 200 Crore
06. The Banking
Companies act, 1949 was enacted to consolidate and amend the law relating to
banking companies with effect from 1.3.1966 and the name of the act has been
changed to – The banking regulation act
07. The
management of SEBI consists of – chairman and five members
08. The
following is the reason for the success of mutual fund – mutual fund scheme
offers to every investor security, steady growth, regular income and easy
liquidity; a small investor gets the professional expertise of the fund
managers of the mutual fund and it carries tax breaks and this benefit is
passed on to the investor
09. The
individual investor can claim tax exemption for both principal amount and
income from these units under – Sec 80 E of the information technology act
10. The main
objectives of special electronic fund transfer scheme – SEFT – it is safe;
secure and same day electronic interbank transfer of funds across the country
11. Treasury
bill is – negotiable security
12. RBI
functions as the agent of the central government issues – treasury bills
13. The
treasury bills are issued at a – discount
14. NABARD
extends refinance to – State Land Development Banks, State Cooperative Banks;
Regional Rural Banks and Commercial Banks and other financial institutions
approved by RBI
15. Automatic
refinance scheme is available to the persons financed under – the scheme of
setting up of agriclinic and agribusiness centers; rural non farm sector
(investment credit) upto Rs. 15 lakhs and composite loan scheme
16. The objectives and functions of IDBI include – to provide technical
and administrative assistance for promotion or expansion of industry; to
undertake market and investment research and survey technical and economic
studies in connection with development of industry and to act as lender of last
resort and to finance projects that are in conformity with national priorities
17. For availing refinance from IDBI – the industrial unit should not be
SSI; promoter’s contribution should be 25% of project cost and debt equity
ratio should not be more than 2:1
18. Central Cooperative Banks – serve as the connecting links between
State Cooperative Banks and Primary Credit Societies; finance the primary
credit societies which balance the excess and deficiency in their resources but
do little commercial banking and are closer to the primary societies than an
apex bank
19. The primary function of a central cooperative bank is – to mobilize
the resources in the district for financing its members; to channelize the flow
of funds from the state cooperative banks and to mobilize deposit from state
government
20. Diversification refers to entering into attractive opportunities.
21. Diversification means the activities outside the existing businesses
of the firm
22. The various types of diversification generally observed by the
business – concentric diversification, horizontal diversification and
conglomerate diversification
23. The world over most of the supervisory authorities have adopted the
following as the basis of assessment of capital adequacy – risk assets ratio
system
24. The committee on Banking and Regulations and Supervisory practices
which released the agreed frame work on international convergence of capital
measures and capital standards in July, 1988 is popularly known as – Basle
committee
25. Basle committee adopted weighted risk assets approach which assigns
weights to – on balance sheet exposure of a bank and off balance sheet exposure
of a bank
26. CBS – Core Banking Solution
27. The benefits of Core Banking Solutions – benefit of not carrying the
cash from one place to another; depositing money anywhere in the country where
the bank is present and instant updating of the accounts
28. Network can be defined as – a system of communication between various
computers used by different users.
29. Retail banking refers to provision of the basic services of a bank to
the individuals
30. The following are categorized under retail banking – personal loans to
individuals; vehicle loans; home loans and credit cards
31. The reduction in the SLR by RBI – will augment the resources of
scheduled commercial banks
32. Under sections 20, 21 and 21A of the RBI act, 1934, RBI manages the
public debt and issues new loans on behalf of the central and state governments
33. Social control of banks was introduced during the year – 1967
34. The following form the part of general insurance – fire, burglary,
theft, marine, household, vehicles etc
35. FDMA means – Frequency Division Multiple Access
36. Full form of ERNET – Educational and Research Network
37. Application of VSAT in bank is – inter branch reconciliation; funds
and securities movement; payment system and monitoring and MIS reporting
38. The various facilities offered by banks through tele banking – balance
enquiry; enquiry about collection or specific credit/debit transactions;
transfer of funds and request for statement of accounts etc.
39. Home banking refers to – how banking is an extended version of tele
banking; in home banking the customer is able to access his bank account from
his home for availing a variety of services which is made available and home
banking is availed through the customer’s personal computer attached to a
telephone line and modem.
40. For availing home banking facility, a client should have the following
– personal computer, modem and telephone line
41. The functions of IRDA – it has the power to specify the code of
conduct for surveyors and loss assessors; it has power to regulate investment
of funds by insurance companies; it has power to supervise the functioning of
tariff advisory committee and it has the duty to regulate, promote and ensure
orderly growth of the insurance and re-insurance business in the country
42. The compelling reasons for bank nationalization are – concentration of
which and economic power in the hands of industrialists and businessmen; branch
expansion was confined to urban areas and rural areas were being neglected;
sectors like agriculture, small scale industries and the other deserving
sectors were outside the purview of bank lending operations and various
malpractices indulged in by banks under private ownership
43. Regional Rural Banks are allowed to pay half per cent additional
interest on savings accounts and time deposits less than three years
44. The regulatory authority for Regional Rural Banks is RBI and NABARD
45. Bank rate means the standard rate at which the RBI is prepared to buy
or rediscount bills of exchange and
other commercial paper eligible for purchase under the RBI act 1934
46. When RBI desires to restrict expansion of credit it raises the bank
rate
47. In periods of depression, when the Reserve Bank of India desires to
encourage the banking system to create more credit, it reduces the bank rate
48. Sub section 12 AB of system 17 of the RBI act, 1934 defines the term:
Repo
49. Repo is an instrument for borrowing the funds by selling securities of
the central government or a state government or of such securities of a local
authority as may be specified in this behalf by the central government or
foreign securities, with an agreement to repurchase the said securities on a
mutually agreed future date at an agreed price which includes interest for the
funds borrowed
50. Sub section 12AB of section 17 of the RBI act 1934 defines the term –
Reverse repo rate
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