Allahabad Bank e-Learning Project

IRT, Panchkula PARTICIPATORY NOTES Are a form of derivative instruments i.e they derive their value from an underlying financial instruments such as equity. They are used by Indian investors not registered with SEBI in India, to trade in the Indian Market. These FIIs buy securities on behalf of these investors ( either HNI or hedge Funds ) and issue PNs to them representing the underlying securities. Any dividends or capital gains from the underlying securities accrues to the investors . These are viewed with skepticism by the regulator because there is no way of ascertaining the true owners of the underlying securities. It is often doubted that the money comes through FIIs is the money that has gone out via the Hawal route. The other concern is that since typically Hedge Funds operations are known to cause volatility in the markets, encouraging PNs could end up increasing volatility in our market. PMLA Under this, banks, FIs, intermediaries, including brokers will have to maintain the records of all cash transactions exceeding Rs 10 lacs PAIS (Personal Accident Insurance Scheme) Initially eligibility 5,000 (Balance ) 16 ( + S/C ) will be charged Account-holder insured for Rs 1.00 lacs + 100 pc disability PSC 40 pc pledge, hypothecation of agril produce for upto 12 months ( loans given for agricultural and allied activities [ dairy, fishery, piggery, poultry, bee-keeping ] directly to the individual farmers, SHGs or JLGs of individual farmers This is culled from various sources by IRT Panchkula. Consult HO circulars for finality. 1 (01) AGRIL (18 pc) ST - Crop Loans, additional advances upto & against for ATM card holders also Review of accounts after six months, if balance not maintained a penalty of Rs

Allahabad Bank e-Learning Project

IRT, Panchkula without limits ) MT/LT Directly to the farmers, implants, development, structure- allied activities, INDIRECT Financing for distribution of fertilizers, pesticides, seeds etc, Electricity Boards, To agencies like LAMPS, PACS (02) M S M E ( SME 40 pc of ANBC ) MICRO Original Investment in P & M Not Exceeding Rs. 25 lac Original Cost of equipment Not Exceeding Rs. 10 lac [ TAR = SMALL 60 pc of MSE advances ] or Original Investment in P & M Exceeding Rs. 25 lac, but not exceeding Rs. 5 crore Original Cost of equipment Exceeding Rs. 10 lac, but not exceeding Rs. 2 crore [ TAR -MEDIUM 40 pc of MSE advances ] or

Original Investment in P & M Exceeding Rs. 5 crore, but not exceeding Rs. 10 crore or Original Cost of equipment Exceeding Rs. 2 crore, but not exceeding Rs. 5 crore [ TAR = NO TARGETS FOR MEDIUM ENTERPRISES ]

(08) Education: Loans granted only to individuals, Upto 10 lacs / 20 lacs (09) Housing : DIRECT 20 lacs to individuals for purchase / construction of dwelling unit per family and loans given This is culled from various sources by IRT Panchkula. Consult HO circulars for finality. 2

Allahabad Bank e-Learning Project

IRT, Panchkula for repairs to the damaged dwelling units of families upto Rs 1 lakh in rural and semi-urban areas and upto Rs 2 lakhs in urban and metro areas INDIRECT Any Govt. agency for construction of House or for slum clearance, max 5 lac per housing unit Advances to Weaker Section 10 pc of ANBC ) Advances under DRI Scheme 1 pc of total o/s as at the end of the previous year PARABANKING ACTIVITIES A banking co cannot hold share in any company ( Pledge, mortgage or absolute ownership ) for more than 30 pc of its capital Factoring Services :-Should be extended only in respect of those invoices which represents genuine trade tranx. LEASE, CREDIT CARD, SMART CARD, PKI For application level security CCA Class1 Class2 CA RA, RA2, RA3 , , , HIRE PURCHASE, MUTUAL FUNDS, DEBIT CARD, CHEQUE WRITING,

- individual users - generated for machines/servers ( encryption/signing ) + Pub Key + digital signature electronic

DIGITAL CERTIFICATE : Pvt key DIGITAL SIGNATURE

: A signature in electronic form attached to an

record. It identifies the origin

of message, ensures A I & identity of the sender It

This is culled from various sources by IRT Panchkula. Consult HO circulars for finality. 3

Allahabad Bank e-Learning Project

IRT, Panchkula uses a pair of mathematically related signing Keys A form of electronic signature, are created & verified using PKI Cryptography that is based on the concept of a key pair generated by a mathematical algorithm, The Public & Private Key. CCA Certifies the Public keys of CAs using its own private key which enables

users and cyberspace to verify that a given certificate is issued by licenced DA. It maintains national repository of digital certificates. PIO Any time held Indian Passport Either of GP, GGP born in India and permanent resident -- whose spouse is an Indian citizen PLR Lending rate that the charges to its most credit worthy customers Cost of funds + operating expenses Benchmark will continue to be ceiling rate for credit upto Rs 2 lacs to determine, with approval from the Board PERPETUAL BOND Between Debt & Equity -- Carry interest---No maturity Qualify as Tier-1 as they can absorb losses---Issuer have the option to recall after 5 -10 years---bankers can hedge against interest rates hikes by issuing floating rate bondsThis will call for amendment in BARE Act PARTICIPATORY NOTES Are offshore derivative instruments based on the underlying Indian securities issued by FIIs or their sub accounts to overseas investors. Issued to those who are unable to invest directly but seek exposure in the India stock This is culled from various sources by IRT Panchkula. Consult HO circulars for finality. 4 --- banks are free

Allahabad Bank e-Learning Project

IRT, Panchkula PAPER OFFER An offer by one company to buy another not for cash but for shares in the purchasing company. The vendor thus mereky exchanges the shares of on company for those of another. PARKINSONS LAW First expounded in 1958 in a book written by the history professor C N Parkinson, the lay says that work expands to fill the time available for its completion . Another allied says that expenditure rises to meet income. PAYBACK PERIOD The amount of time that it takes for an investment to pay for itself; the time until the discounted from the investment investment. PREDATORY PRICING The practice of cutting deliberately and drastically the price of a product and services in order to steal the competitor market share. BY implications s it involves cutting pirces so that the profit margin is zero or is negative. PROJECT FINANCE A way of financing big capital project that depends primary on the future cash flow of the project for its returns. exactly equals the capital put into the

This is culled from various sources by IRT Panchkula. Consult HO circulars for finality. 5