FS we news7T=iA= IBP§ PO Interview Booster for 2015 A ittp://newstechcafe.com 1. Whatis 1PO ? Initial Public Offering. The first sale of stock by a company to the public. Companies offering an IPO are sometimes new, young companies, or sometimes companies which have been around for many years but are finally deciding to go public. IPOs are often risky investments, but often have the potential for significant gains. IPOs are often used as a way for a young company to gain necessary market capital. 2. What is LAF? Liquidity adjustment facility (LAF) is a monetary policy tool which allows banks to borrow money through repurchase agreements. LAF is used to aid banks in adjusting the day to day mismatches in liquidity. LAF consists of repo and reverse repo operations 3. What is FIl ? DEFINITION of ‘Foreign Institutional Investor - Fil’ An investor or investment fund that is from or registered in a country outside of the one in which it is currently investing. Institutional investors include hedge funds, insurance companies, pension funds and mutual funds. 4, What is ECGC? Export Credit Guarantee Corporation of India Ltd. ( ECGC) 5. What is CASA? ‘The CASA (current and savings account) ratio is the ratio of deposits in the current and savings accounts of a bank to its total deposits. A high CASA ratio indicates that a higher portion of the banks deposits come from current and savings accounts. Like Us on Facebook http://facebook.com/technologytok Page 1FS we news7T=iA= IBP§ PO Interview Booster for 2015 http://newstechcafe.com Liquidity means how quickly you can get your hands on your cash. Definition: Liquidity means how quickly you can get your hands on your cash. In simpler terms, liquidity is to get your money whenever you need it. Description: Liquidity might be your emergency savings account or the cash lying with you that you can access in case of any unforeseen happening or any financial setback. Liquidity also plays an important role as it allows you to seize opportunities. If you have cash and easy access to fund and a great deal comes along, then it's easier for you to cease that opportunity. Cash, savings account, checkable account are liquid assets because they can be easily converted into cash as and when required. 7. Functions of RBI? Following are major functions of RBI: 1. Currency authority Control of Money supply and credit ‘Management of Forex 4, Asbanker to the government 5. Maintenance of India's financial infrastructure 6. Banker of the banks Supervision of the Banks. Like Us on Facebook http://facebook.com/technologytok Page 2FS we news7T=iA= IBP§ PO Interview Booster for 2015 http://newstechcafe.com In the commercial Banking system, the two functions of RBI viz. Banker of the Banks and Supervision are very important. As the Banker's Bank , RBI carries out the following functions: Holds a part of the Cash Reserves of the banks Short term lending Centralized clearing facilities. 4. LORL: 5. RBlis knownas Lender of Last Resort because, banks are supposed to meet their shortfalls of cash from other sources and if the other sources don't meet the demand, then they approach RBI. oe CARY 7. CRRis Cash Reserve Ratio , the share of the liquid cash that the banks have to keep with the RBI. Current CRR 6% 8 Supervisory Functions: 9. These functions are related to banking license, branch expansion, liquidity, management and working methods, amalgamation, reconstruction and liquidation. 8. What is NABARD? ‘National Bank for Agriculture and Rural Development (NABARD) was established on 12 July 1982 by an Act of the Parliament to promote sustainable and equitable agriculture and rural prosperity through effective credit support, related services, institutional development and other innovative initiatives. What is KYC Form? ‘The objective of KYC guidelines is to prevent banks from being used, intentionally or unintentionally, by criminal elements for money laundering activities. Related procedures also enable banks to know or understand their customers, and their financial dealings better. This helps them manage their risks prudently. Banks usually frame their KYC policies incorporating the following four key elements: + Customer Policy; ‘+ Customer Identification Procedures; © Monitoring of Transactions; and Like Us on Facebook http://facebook.com/technologytok Page 3FS we news7T=iA= IBP§ PO Interview Booster for 2015 http://newstechcafe.com + Risk management. For the purposes of a KYC policy, a Customer/user may be defined as: *_ aperson or entity that maintains an account and/or has a business relationship with the bank; + one on whose behalf the account is maintained (i.e. the beneficial owner); + beneficiaries of transactions conducted by professional intermediaries, such as Stock Brokers, Chartered Accountants, Solicitors etc. as permitted under the law, and ‘any person or entity connected with a financial transaction which can pose significant reputational or other risks to the bank, say, a wire transfer or issue of a high value demand draft as a single transaction, 9. What is Fund Flow? DEFINITION of ‘Fund Flow’ The net of all cash inflows and outflows in and out of various financial assets. Fund flow is usually measured on a monthly or quarterly basis. The performance of an asset or fund is ‘not taken into account, only share redemptions (outflows) and share purchases (inflows). 10. Full from of CORE? Centralized Online Real-time Exchange 11. What is Balance Sheet? a statement of the assets, liabilities, and capital of a business or other organization at a particular point in time, detailing the balance of income and expenditure over the preceding period. 12. What is Mutual Fund? Like Us on Facebook http://facebook.com/technologytok Page 4news7T=iA= IBP§ PO Interview Booster for 2015 http://newstechcafe.com An investment programme funded by shareholders that trades in diversified holdings and is professionally managed. 13. Who Signs on Bank Notes? RBI Governor 14. Who Signs on Re 1 note? Finance Secretary 15. What is recurring dep Recurring Deposit is a special kind of Term Deposit offered by banks in India which help people with regular incomes to deposit a fixed amount every month into their Recurring Deposit account and earn interest at the rate applicable to Fixed Deposits. 16. What is growth in Economy? Economic growth is an increase in the production and consumption of goods and services. It entails, increasing population and/or per capita consumption. Itis indicated by increasing gross domestic product (GDP). 17. What is current Bank Rate? Bank Rate :- 99% Like Us on Facebook http://facebook.com/technologytok Page SFS we news7T=iA= IBP§ PO Interview Booster for 2015 A ittp://newstechcafe.com 18. What is merchant banking? ‘A merchant bank is a financial institution that provides capital to companies in the form of share ownership instead of loans. A merchant bank also provides advisory on corporate matters to the firms they lend to. In the United Kingdom, the term "merchant bank" refers to an investment bank. 19. Who is the chairman of SBI? Arundhati Bhattacharya 20. What is Zero Based Budgeting? DEFINITION of ‘Zero-Based Budgeting - ZBB' A method of budgeting in which all expenses must be justified for each new period. Zero-based budgeting starts from a "zero base" and every function within an organization is analyzed for its needs and costs, 21 What is FMC? Who controls it? ‘The Forward Markets Commission (FMC) is the chief regulator of commodity futures markets in India. As of July 2014, it regulated Rs 17 trillion[1] worth of commodity trades in India. It is headquartered in Mumbai and this financial regulatory agency is overseen by the Ministry of Finance. The Commission allows commodity trading in 22 exchanges in India, of which 6 are national. 22. Is there an ATM without a PIN? Yes. Micro AtM. Like Us on Facebook http://facebook.com/technologytok Page 6FS we news7T=iA= IBP§ PO Interview Booster for 2015 A ittp://newstechcafe.com 23. What is the full form of ATM? Automated Teller Machine 24. What is IMF? Its role and HO? International Monetary Fund Headquarter :- Washington D.C United States Role :-its two primary functions were: to oversee the fixed exchange rate arrangements between countries, thus helping national governments manage their exchange rates and allowing these governments to prioritise economic growth, and to provide short-term capital to aid balance of payments. 25. Have you heard about Micro ATM? Yes, Micro-ATMs are biometric authentication enabled hand-held device (also known as a Point of Transaction [PoT] terminal). Micro-ATMSs will primarily perform following functions: Cash withdrawal * Cash deposit + Balance enquiry + Remittances 26. Who are BC's? Business Correspondents (BCs) appointed by the banks will operate these devices. The physical currency would be handled by this Business Correspondent and not a machine like a regular ATM. All transactions will require online biometric authentication with the UIDAI authentication server in order to be processed, Like Us on Facebook http://facebook.com/technologytok Page 7FS we news7T=iA= IBP§ PO Interview Booster for 2015 http://newstechcafe.com 27. What is SLR? Why RBI uses it? Statutory liquidity ratio (SLR) is the Indian government term for reserve requirement that the commercial banks in India require to maintain in the form of gold or government approved securities before providing credit to the customers. Statutory Liquidity Ratio is determined and maintained by Reserve Bank of India in order to control the expansion of bank credit. ‘The SLRs determined as a percentage of total demand and time liabilities. Time Liabilities refer to the liabilities which the commercial banks are liable to pay to the customers after a certain period mutually agreed upon, and demand liabilities are such deposits of the customers which are payable on demand. ‘An example of time liability is a six month fixed deposit which is not payable on demand but only after six months. An example of demand liability is a deposit maintained in saving account or current account that is payable on demand through a withdrawal form such as a cheque. ‘The SLR is commonly used to contain inflation and fuel growth, by increasing or decreasing it respectively. This counter acts by decreasing or increasing the money supply in the system respectively. Indian banks’ holdings of government securities are now close to the statutory minimum that banks are required to hold to comply with existing regulation, When measured in rupees, such holdings decreased for the first time in a litte less than 40 years (since the nationalisation of banks in 1968) in 2005-06. ‘The main objectives for maintaining the SLR ratio are the following: + tocontrol the expansion of bank credit. By changing the level of SLR, the Reserve Bank of India can increase or decrease bank credit expansion. + toensure the solvency of commercial banks. + tocompel the commercial banks to invest in government securities like government bonds. 28. Who does open a Demat account? ‘The benefits of demat are enumerated[by whom?] as follows: * Easy and convenient way to hold securities | _ Immediate transfer of securities Like Us on Facebook http://facebook.com/technologytok Page 8FS we news7T=iA= IBP§ PO Interview Booster for 2015 http://newstechcafe.com + Nostamp duty on transfer of securities ‘Safer than paper-shares (earlier risks associated with physical certificates such as bad delivery, fake securities, delays, thefts etc. are mostly eliminated) + Reduced paperwork for transfer of securities + Reduced transaction cost © No“odd lot" problem: even one share can be sold + Change in address recorded with a DP gets registered with all companies in which investor holds securities eliminating the need to correspond with each of them separately. + Transmission of securities is done by DP, eliminating the need for notifying companies. + Automatic credit into demat account for shares arising out of bonus/split, consolidation/merger, ete + single demat account can hold investments in both equity and debt instruments. + Traders can work from anywhere (e.g, even from home). Benefit to the company The depository system helps in reducing the cost of new issues due to lower printing and distribution costs. It increases the efficiency of the registrars and transfer agents and the secretarial department of 2 company. It provides better facilities for communication and timely service to shareholders and investors. Benefit to the investor ‘The depository system reduces risks involved in holding physical certificates, e.g., loss, theft, mutilation, forgery, etc. It ensures transfer settlements and reduces delay in registration of shares. It ensures faster communication to investors. It helps avoid bad delivery problems due to signature differences, ete, It ensures faster payment on sale of shares. No stamp duty is paid on transfer of shares. It provides more acceptability and liquidity of securities Like Us on Facebook http://facebook.com/technologytok Page 9FS we news7T=iA= IBP§ PO Interview Booster for 2015 http://newstechcafe.com Benefits to brokers It reduces risks of delayed settlement. It ensures greater profit due to increase in volume of trading. It eliminates chances of forgery or bad delivery. It increases overall trading and profitability. It increases confidence in their investors. 29. Credit Rating Agency? A credit rating agency (CRA, also called a ratings service) is a company that assigns credit ratings, which rate a debtor's ability to pay back debt by making timely interest payments and the likelihood of default. ‘An agency may rate the creditworthiness of issuers of debt obligations, of debt instruments,{1] and in some cases, of the servicers of the underlying debt,[2] but not of individual consumers. 30. What is Plastic Money? Plastic money is a term that is used predominantly in reference to the hard plastic cards we use everyday in place of actual bank notes. They can come in many different forms such as cash cards, credit cards, debit cards, pre-paid cash cards and store cards. 31. What is Demat account? In India, shares and securities are held electronically in a Dematerialized (or "Demat") (/dimeet/;) account, instead of the investor taking physical possession of certificates. A Dematerialized account is opened by the investor while registering with an investment broker (or sub-broker) 32. What is social Banking? Our definition of Social Banking Like Us on Facebook http://facebook.com/technologytok Page 10FS we news7T=iA= IBP§ PO Interview Booster for 2015 http://newstechcafe.com We acknowledge that a generally accepted definition of “Social Banking” does not exist, and — given the variety of its historic origins and underlying values ~ arguably cannot exist. But we believe that there is a common denominator of many organisations that can be subsumed under this notion of social banking, which we define as follows: Core objective and maxims “Social Banking” describes the provision of banking and financial services that consequently pursue, as their main objective, a positive contribution to the potential of all human beings to develop, today and in the future. In Social Banking, the focus is on satisfying existing needs in the real economy and the society whilst simultaneously taking into account their social, cultural, ecological and economic sustainability. Furthering the common good by generating multiple returns with respect to these aspects is at its core. Generating a monetary profit is not an end but a frequent prerequisite to guaranteeing the necessary flexibility for pursuing its objective in a continuously changing environment. Social Banking understands money, banking and finance as means that are conceived and that can be further developed by humans to achieve its objective. always conscious of its responsibility in dealing with money as a formative medium. It Social Banking describes a process, not a steady state. It is about jointly identifying and testing creative new ways to come close to the above-described objective. This involves multiple aspects and demands, which are sometimes conflicting and often necessitate compromise. Therefore, Social Banking depends on an on-going and constructive dialogue of the people involved in and affected by its activities, as well as on a continuous reflection of their respective motives (why?), actions (what?) and approaches (how?). This requires the willingness and capacity to develop on both an individual and an institutional level Common characteristics Characteristies of many such understood Social Banking organisations are (in alphabetic order) for instance * Catalogue of socially, culturally, ecologically and ethically oriented negative criteria to prevent unsustainable ways of living and doing business that do not foster the common good, + Catalogue of socially, culturally, ecologically and ethically oriented positive criteria to support sustainable ways of living and doing business that do foster the common good, + Contestation of the values underlying its activities, Like Us on Facebook http://facebook.com/technologytok Page 11FS we news7T=iA= IBP§ PO Interview Booster for 2015 http://newstechcafe.com + Dialogue with a wider group of stakeholders, ‘© Emphasis on human rights and solidarity, Equal treatment of genders, * Organisational structures based on participation, + Ownership structures preventing dependency of dominant individual interest, ‘+ Pro-active contributions to the public discussion of perceived problem areas, ‘+ Promotion of giving as a central ingredient to renewal and development, + Rejection of the profit maximisation principle and of speculative activities, ‘+ Self-perception as an intermediary providing services to depositors and borrowers, ‘© Transparency in all business conduct, 33. What was SBI old name? Imperial Bank of India 34, What is break even point? ‘The breakeven pointis the sales volume at which a business earns exactly no money. The breakeven point is useful for the following reasons: To determine the amount of remaining capacity after the breakeven point is reached, which tells you the maximum amount of profit that can be generated. 35. What is Money Laundering? ‘Money laundering is the process in which the proceeds of crime are transformed into ostensibly legitimate money or other assets. However, in a number of legal and regulatory systems the term money laundering has become conflated with other forms of financial crime, and sometimes used more generally to include misuse of the financial system (involving things such as securities, digital currencies, Like Us on Facebook http://facebook.com/technologytok Page 12news7T=iA= IBP§ PO Interview Booster for 2015 http://newstechcafe.com credit cards, and traditional currency), including terrorism financing, tax evasion and evading of international sanctions. Most anti-money laundering laws openly conflate money laundering (which is concerned with source of funds) with terrorism financing (which is concerned with destination of funds) when regulating the financial system. government funding of spending by borrowing. 1. The method used by a government to finance its budget deficit, that is, to cover the difference between its tax receipts and its expenditures. The main choices are to issue bonds or to print money. 2. The assumption that a change in government spending or taxes will be financed by a change in the government budget deficit, rather than by an accommodating additional change in spending or taxes to keep the budget balanced, Example: a "deficit-financed increase in government purchases. 37. What is Financial Inclusion? Financial inclusion or inclusive financing is the delivery of financial services at affordable costs to sections of disadvantaged and low-income segments of society, in contrast to financial exclusion where those services are not available or affordable. 38. What is CTS? How it works? Cheque Truncation System (CTS) or Image-based Clearing System (ICS) in India, isa project undertaken by the Reserve Bank of India — RBI, for faster clearing of cheques.[1 CTS is basically an online image- based cheque clearing system where cheque images and Magnetic Ink Character Recognition (MICR) data are captured at the collecting bank branch and transmitted electronically Truncation means, stopping the flow of the physical cheques issued by a drawer to the drawee branch. ‘The physical instruments truncated at some point en route to the drawee branch and an electronic image of the cheque is sent to the drawee branch along with the relevant information like the MICR fields, date of presentation, presenting banks etc. Like Us on Facebook http://facebook.com/technologytok Page 13news7T=iA= IBP§ PO Interview Booster for 2015 http://newstechcafe.com Cheque truncation, would eliminate the need to move the physical instruments across branches, except in exceptional circumstances. This would result in effective reduction in the time required for payment of cheques, the associated cost of transit and delays in processing, etc., thus speeding up the process of collection or realization of cheques. 39. Types of Account in Bank ? Saving Account Current Account Like Us on Facebook http://facebook.com/technologytok Page 14