« Mallesh BEMBQ | Introduction to Indian Banking 1323. Schetesof Balance Stet nd ncone 4 Course Code: BA4003 Performance Evalu: Stament ian Banking Sytem CAMELS re Overview of Indian Banking System Inodcion < ‘CAMELS Rating System 2 Moning nd Delton of Bing sn CComponens of CAMEL 2 Banking and Financial Services Keyhatrinchedn CAMELS Rae 44 troduction o Indian Banking System and Performance Evaluation 9 dion Banking System Srctue~ Futions ~ Key Regulations in Indian Banking Sector -RBY ‘Act. 19342006 -Banking Regulaion Act, 1949- Negotiable Instruments Act 1881/2002 Provisions Relating | to GRR ~ Provision for NPA's - Overview of Financial Statements of Banks ~ Balance Sheet ~ Tacome J: Managing Bank Funds/ Products & Risk Management 9 | aw aa. Meee Ra ee same oft Eerie a naaty et Re Selly nae f tor A ° et and Libity Management ~ Finanela Distress S bytes DRL, Meanig of Deposits “ iment Manageme Sourees— Loan Managerent ~ fdels~ Risk Management ~ Interest Rate ~ Forex = Credit Matket = = Sigua to Bonowers ~ Pred pedal and len Risks -NPA's Coren sueson NPAs ~ M&As Backs int Sess Marit | Unit IL; Development in Banking Technology Payment System in India ~ Paper Based ~ E Payment ~"Eleewonic Banking ~ Pl Forecasting of Cash Demand at ATM's ~ The Information Technology Act, 2000 ~ Security Thess in 6-Banking & RO ‘Sector Technology Vision Document Unit IV: Asset Based Finanetal Services rice -Fnaplal Services Market in India ~ NBFC ~ RBI Framework and slaation = Underwiing ~ Mutual Funds. Unit V: Insurance and Other Fee Based Financial Services ~ Prodets and Services ~ Venture Capital Financing ~ Bill Discounting ~ Factoring ~ Merchant Banking ~ Role of SEB 26° ee and Uli Monagenet 6 it (nts 122, FomtoProttantLow Accum 41262, Nebo Achy Magenent 83Conc of Praett Dies our of Fania Dies a Dans Freeson Modleof Panel Dives MetodsStatepies for Retail (of Fanci Distress ‘Tumsround States Permanent Suatesy Rehbiiation Process Signals {0 Borrower's Financ Sickness [isk Management Meaning of Risk “Types of Risks in Bas Ree ee ma ee ee in Banks Fisk: Measurement and Management 65 o 6 B n ® > 3353 NonPetrming sss PAD Advantages of ECS 9 0 2 too 100 00 | | Types of Ts Working of EFT Trenton Advanages of EFTs 5 Disndvanapes of EFT ‘Real Time Gros Setdement (RTS) 3371, Feates of GS 5372 3373 3378 Advantages of ROS 3375. Disavanages of RTGS NNaloal “Electronic Funds Transfer 07 108 351, Concept of Plastic Money 352, Features of Plc Money 353. Types of Plast Money ‘Types of AT Working of the ATMs 375. Forecasting of Cash Demand at ATMS 376. Advanagesof ATMs aa. 38 3a 382 Feates of the Information logy Act. 2000 383. Objectives ofthe FF Aet he 38%. Scope and Application of the TF Ack 123, 2000 38s. 38. ly Threasin E-banking 127 itive in Tackling Security 129 2. Exercise 10 Unit 4: Asset Based Financial Services inancal Servies 35, 436 Imporsace of NBFCS 43.7. Dilleece between Busks and NBECS 139‘ean nig Sem nd Pfam Bao i B IRDA Act +, Fea esi Unit 1 eyes of RDA , someon of IRDA yl Introduction to Indian Banking System and na Performance Evaluation 1d. Overview of Indian Banking System ‘The moder baking system ia oi stated withthe absent of G ese Cait noe of vente Ci sen ion of OL dency Banks. Subsoqucel, these thre banks were amalgamated and Docume ‘now athe Imperial0A Thi Sees Bushing ed Far =) AUC stectont In Ds Sem ad arma aati (1) » 1.1.2, Meaning and Definition of thet customers 45) Buying and sling of foreign exchange and ‘Many ofthe foreign banks have theirs in India, whose main objective eo provide export According to RS. Meyers, “Banks ar institutions Inde al enw rv zed toa nk deposit and documents and consents Tor Saving Banks et. ‘Amongst these, the reason Features of Banking rized by the folowing Festores: of eposis and borowing ising banks of our country, the entry.AE TIT —— having chr diced eo for seuing up ms 10 be under, ‘These an be bony divided into wo catego en ‘se some ofthe example ‘events. Scheduled. banks may” be Taner categorised int following wo groupe Shs] Cooperine tine 1) Primary Functions: Primary banking fants ofthe commercial banks inchae the folowie Des Banks which engige tenses in all ypes of 3 banking + Fie Depotse gps ana and Ty te erower die IO on Payment {eset fr sal eps. 8 2 prowlad for texing evpemes HAE of ie community a dou es. 18) Creation af Crt Th msn fncton of ‘erpreteus by dcuning. et tscouming of ele bile Tie sere oo te tsa Sta opt a te ell nominal comma reprecurs by mort ‘oe femme paper, EEE ‘elerswbo purchase inblk once | des ofitseastomerReem Ager pamphlets. et.” Thit omston elucies ie” casiomers SESE Sr constant Mactan (eo foreign exchanes- Se cet wth may Cee oe Feblemat og gute tthe co eth tnks ae sling hie ‘hey are engaged in he busines. Spimoe enciange a ke ale ott =e a [NABARD whic re given to he PAGS by HelpFET SOOKE ected by matuiy costs ad of Section 29 of cat outcomes fd isk aston Leek ‘ofthe maturity intermediation In addition tthe deposits which f of fogs for onward leading, thf Inermedinvies have tbe Senet of geting spincipe ste linked wth exh other in eordiasted manne. 1 4) Real Time Gross Setlement (RTGS): RTGS refers to a sytem which envisages on-going seulement of wnsacons(vasfer of funds) on $ realtime bas A seis of selements ke pace on individual wanssction baie witout electing Seulement under RTGS take pce in th books of RBI, ey ar inal and east be revoked locaton activites ough ime” The finale sevice encompass all the sctvesPES aan ay INDIAN BANKING SECTOR: 5.2.1. Introduction Banks deal substan Any nonjuaciows ‘misappropriation ie ay manner 3th Seria rperaions, [nvances to the gover omy. objective of whe ‘i providig all the monetary snd. banking ‘goverment andthe present economie conions. vices te government. eons Want Ree att 13) Banker's Bank: The following ways by which Reserve Banoo se baker bak areas lows: |) According to the Reserve Bank of ladia Act the Ban needs to maintain cenain te eae < SEY cn a doe ney ae contol By per ng according progtamsne efter independence in morgage of approved secur i) Te the Banking Regulation Act, 1949 andthe adequate quantity of ney note and coins and ineasy fo RBI to contol he gro ofthe 10) Corporate Governance: The RBI has te right to manage the appinument of the chairman snd rectors of tanks in Inia. The RB ean ako sppoit the adtiona directors of baks IW)KYC Norms: The RBI has staned 3 new ‘guideline which is known as. “Know Your ry fonctions in improving mi wriy oon nape neo Bat trspreney Nomis The aks ne we Copan Bane, Ter gone Fa aeze ot Agric imposed on them for every kind of scrvice given ‘Stlf Training College (Chennai) aienk inal service git and Zonal Training Centres for Staff at Mumbai, i Sa 13) Rk Magen he RO pi se enwoing te an ma the ecanomy. The need 1M) Audit and Inspection: The aust sd inspection {is done by RBIby the help of of sit ad onsite ‘monitoring system. The onsite inspection method is known as "CAMELS" adequacy, Asset quality, N Liquiity and System and co a8 £30000 for every bank, ‘The Reserve Bank of Inia can exercise beter ing tothe and regulation framed by the government. thew sis,a hare a ars peal fas sone st op bh a Ins 1) Promote Regional Rural Banks: tbs so ed unter of Regional Rud snd so bl roving sppes foe baling mtr ard for fielos-conastecion 5) Exalshment of Export-Import Bank of nda ‘The eublsient of Expe-mport Bank of lain ‘as prvied ioc sussance 1 the expocer ‘hd has so epee vars comme banks in owing the fri tae of the county by opting ci bras neg counties. 6) Promotes Research: Various kinds of rsexch in tefl of aking are promoted by Reserve Bank of Ind 5225, _ RBIGoverns Banking Stemi India Teen be epi bythe ches ad provisions of seve Bak of Inds 522.6, Scheme ofthe Act The RB Actoonsia of five cles fe sche, Atri cuties of the cape ae cused fll bya summary of min prsisns of he Ac. Ss sitenance of Pee re cs Pebin of Acceptance of Deposits Cea Marte Bas: Tis hae Seis the nt be accep in rain ses ‘hd hesing ccs ppinner, powers and dues of “Bi extn of aks fom nce xan ster tax deletion of poner igidsion fhe ban. Contin vor the Chptr 1 of RBI Storie, ee andeoemescenat 2 Deiians Comestn of he Cel Bou nde steteee esis ™ Seton 214 ‘Secon 28Day of omtuaking, inns © Femehstscens rege tk CChopter IID: Regulation of Transactions in Derivatives, | Money. Market a rn Sense Dak a ae secon it) Secine sad Scien eagles Term sn “Fund sc ei cot Soe | seine. Sostont a pis | na] llamas rom acme ak nd, | Scions in desivatives, and, with the th Cental Boar in any oe ExplanationFor te clase, "eae" aya vo | firure date at an agreed reed rice which Includes interest forthe fond lent In Section 42 of he Secon 36 secon 37 regions Fetes of ction ken ng fh Fag xen rand of as of Penalles Contained under the Chapter V of RBI by compatis Samo sien SEB ted FAB) dele nscporscrnc ep Provided tht enig or ao By way of ooo eae posal a be Sy baton 5.2.3, The Reserve Bank of India Act, 2006 further to amend the Reserve Bank © on sich date a he sent my, by nofeaon in the Official Gaze, appoint: and diferent tes ay be appointed by. diferent provisions of this Act.1) “Money matt sean” in nonce ne tem mene po cette of ‘ommensal ans comms SE Sac te init of rial mary up to one gear fe a an agree. fads ee ©) "Secidee” means secures, ofthe Centr Goverment cea Site Goverment or ich seus ofa ol hry ab may be specie in his etal ty the Cental Goverment and, fore Purposes of repo” oe “Weer Ince cores bods ad ebenties. {Wh 45. (Power to Regula Transactions in Derivatives, Money Market Instruments, ee): 8) The Bank may, ia public irs, 0 © epultthe financial System of be coany (orf advange, daermise the poly ung SEO A ama tS is hn ae oe sone oe te pee sas one | crobling 0 Cf section (2). call for “sos Os | formation, cause 20 inspection gy Shepstone snp 45x (Duty to Comply Forish Inform Peiod or on demand According {0 Thomas, “A negotiable instrument s one which i, by a leglly recognised custom of trade be by delivery or by endorsement snd oie to the panty ible, such way orth time being may soe soho buys an instrument i also known a a hale 1 valid ide even if te Features of Negotiable Instruments iferent fates of negodableinsuments ae 2 noniranferabe. any defect in he tide ofthe arse or 22 former pay i will gochave any fet. andatory to provide wansfr oe to the fat dar iis quite easy to have epodabiity and faster saluions of thse insumens 8) Evidence: Ifa document des nt gaslfyt be [Negotible Instrument can be weed ae proof of indebted,rae, or ceptor thease maybe mm the tines ee at press and struments, Miscellaneousks omer] na Tat Seneset “ esses a0. The of ‘ite soplies ia te ee ekg (@) of Section 135, the phrase within een ys" replaced wid "within hy ys 4) Section 141: Following. the Amendment. the ‘The Banking Regulation Act was farther Public Financia Instone and Neg Regulation (Amendment) At, 1994 ded by Banking Laws (Amendment) Act, 1983, the Banking frsurent Laws (Amendment) Act, 1988, andthe Banking the Act ks rmplymest or oti be Cone Gove ot eset govcnmest, They ae eo table fF oi ny held such office tor ks mainly staned thei basnes as companies registered unde the Act except Section 56 ppieable tothe Banking Compania the an, col et ce Se ead % The Act doce not apply 1. Al primary age to) Section 147: All dhs offences commited ender {hs Act were made compoundabe reserves than rpess oe le. ‘Banking Regulation Act, 1949 ein Cle 0, Seton 70 olan Ta Ak* ari Se ain Fm EO)AUE J | ono a Syn nd ere Din) . | ©) Conse vt te Teens sy cut gun Bae es be niall on CRE tances of ate esenl | fe Regent rohennestaip of sctan2.354 aber a 128. Pro Bassa etn 2 The pray for ik co " raking afequste brea Sh ny dinewon in he veo on [seta 2 een fois Koon [Go Nett tne spoved nccebere ceri, ly Got xcs and BR Act bw Rs eso fs a lection 25: [Ades of ans om at guste Fy sal ac Be shan 75% Provision on Standard Assets: iy Tier I banks should make 3 general rovson of «minimum of 0.25 percent on Sandard ase etn 36: {scion 360: Keon as, [seins secon sys econ 22 Isscton az 1.2.7. Provisions Relating to CRR- ified Secon 3 of 2005, Rest Baste Reseotal He 3 Calgoo Sandal ‘est Disa — aia Agicatae ad SME Parsnt 10 the amendment. the entvile statutory minimem CR raienance urea of 3 pr ceat no osger exitsthe asics are more than Kenge gies the positive oe ‘ditence would te megaive whe Ire than he ass 1b) The isued part of resend tote pt ow sss a holders scrually pay. the needed amr iy ay arcu contingency. » “The demand deposit of commercial bask ae 2 porion. of apzregte ‘money. spel. Demand depositor can vse thee deposi as money by" issuing cheques for makingFixed ases ie fur and ‘W) Other Assets: The Ineeres annolan Bag Sent Pence Es Us) Marovet iscomereats to seo wa rev oe bak whoa 8 and appropiate Depa ile ca deps at 2 poe Sime ontebeatsas = sigs, Lgudi, and Seni” Managemen, 1.4.2, CAMELS Rating System Components of CAMEL 5 considered quacy: The let °C in stands for “Capital Ade money mates o ote dy“Th igi of ny bank is measured the ‘feat th he bank and the balances with he bank to meet is unespete Sensitivity: The “This component i also wed fr evslating the io market haved price changes with 1.44. Key Ratios Involved in CAMELS Rating paseo a | ei sted sets Quality: Ths component use fy % Ceswing. tbe nonperOrming Ske a iby the Bank eng ofthe bat ease the asset ual | inesomen as aains advances. Percentage Change in NPASt This il tps in determining te changes in net ne performing assets over the previo yeas il be beer for the bank sucoesfl in reducing 2 hi ‘of is et non-performing assets, Desig Syst nd Penance ato (it 1) * 28 it helps in fectvenes and efficacy ofthe quit to toa depos wth the bank, Liguid Assets Total Assets (LAVTA) Tis ‘overal o ‘The aio is computed in the following way: Spread Ratio (%) » (Spread / Working Fund) Scuttiestat provide higher rete = 100152, ong Anes: OPS Seems 2) xan i seta ey ens in nian lis Unit 2 esc te varus earpnens edn CAMBEL'S tel aa te pre tk Managing Bank Funds or Products & Risk Management“ pe gaily sexing: as ines ly er an poe Ths ig ps SH ns ga cop aden isheene uments ital sdoquny framework is eit oa posi 9 Stole resource to abv any loses arin fom he Fisk nits bases 22.1. Capital Funding and Strategies ‘Te sousig aod managemeat of exit ot financial amis and aeconning_ pred. Fae sete Ia a8 fermen services have teal teen dependent on hi ht aor fn ‘anata ene fr ene fiesta ‘Sook ston provide {oon a eular sis (dg yl) cr when it ‘shown capa frds wil become avaible i ek Amann) pis neresing “ 2) Sac Co Gap aes autoniny ™ ab arms ensue tt ep shoud be i neapeciel Loses ks ined ik, hn it woul be need back tnd vice versa. Ale counties, ‘salsh Beir own guide ney Norms. Capa || slequcy mesures te sengih a bank 2221, Norms or Capit Adpucy Raina ‘Te Commitee on Barking Reglaias and Supervisory Prices (Basel Commits) hd eased the idles on copa messes ad apis in July 1988 which were been accepted Bails can = THeTonecaptalTiertwocapital Risk weighedases ‘esee aniseed ase onlin ad exsly asbsppont Tundoreserves bo shares thes functions. | 22.2, Capital Adequacy Norms for bank Sipe faces fr capi ‘eget for es in 98 kao as Bal the tems "depos and witdraval” tendo obscure the ecooom subance 23.2. Features of Deposits ‘The important features of bank deposits re as follows: 1) Bank deposits ae fay safe become banks are | subject a contel ofthe Reserve Bank finda with ‘They can be enchasedpremanrely by incoring a (6) Loans ca be raised a 18) The ra of intrest may change from ie ote scoring tothe ules oF Reserve Banko aia» 2AM. Savings Deposits Acvount sais dot assist ek act fasts ey save vty al cm eto) ‘The ark ay impos sme reson, sich ovat Helder can witha ony arnek The depose gee in De ewig (epost The eof tre sow on tse 2:05 Feature of Saving Depestt Acoust Flowing ae he main fees of sing SPs 1) The min purpose of sch acount 0 OTE sl sigs. 2) Sich ascoants do nat rest the fee) at tof epost 5) Soch account alow widows. Howes, there may be some resins tached Be 4) The banks gerenlly alow for wit ‘rough slp orebesue ') Toe sees rae pid co such scots is every som, The present eres ate ea lr pr pred ne | ey See a a a epee ny 1 eee oe on TB -eatres of Curent Depos ‘Sancirishs asciaed 5) The bank may use the fads or lending wo he2) Such ype of account lls fora 3) ‘The bank any usize such fond uit tote business. 2 ‘management time, matrl t,in ffeiog each 4) Te bank may also channeie these 6 othe proible ars. it service. Costus pricing generally cals all he costs of fering the serve pus 3 ‘i Accounts (NBD 2335, Non-Resident Indians A margin for prof. Conon pricing is “The non-resident bank acount can be open by Ins ‘atonls. penn of Tian cxgin Hing in aS forcignaabonals and frign compa i Inds Ot ‘the dine of opening a nom resent seeoan, banks ‘provide inital deposit to the po ideas. The mount provided by bank © PF vidal oF ‘siden county canbe recived rom ard 3 ‘ways. Te thre ways are as fllows 1) The bank ean receive the money in an approved Dot De se ee apne Foon cemitedoe pet angingbtecn oe eran tec jean | 2344. _orcign Funds Higher thin he orm re be ane fered in at a ener of as Gan borrow money from 9 TT ieee, ote of Shon sow fr aston pl Fame the exsing somsesdent 2000 OF Canal tank makes the loan WOU iS disco, | esane poe, Sindow by crediing the bomowing isin Lown made by ext bank a Services the estomer purchases fe = “The relevant formulae: [Advantages of Non-Resident Indians Accounts Some ofthe fey beefs ints 2345. Commerc \ {tem depending upon the load and foreign I icosseatrene coaeeoe SEE Sgt waster of fond and \ tachng ofeaneses sy acess tbe ins For example, 2 tak deters fom analyst of is costacouning igus tht for each 4) NB Yak account lows sly to compre eet ‘cand caring potential Dewecn hoe and bcd i 234, _Non-Deposit Sources ‘The vse of non-dpose sources of funds epost ping ‘what cute they are ncoring in abour an 6) Other Money Maret Borrowingserie tony. | ’ cannes S| hte gt , feo vor ngs col APIO 1) Aes a sins ne Maker pccein ping mat comely hose in nytt fac: Sere toe sani ing | ere 2 Abe miet es rte ot rap ct of fins ph cin eed 1 Bee pi dy i pes one ket ened okies beens ces, ‘i Subsul eewants of le on valu Champs Tt Ci canal eae it Cat Ci 1) Dems iy cess Ine bersotsotspatts tec Te td sin ass i ly i rather ly Naito ‘Soup nes nape eae ‘Salven Banks ong Night es en we stove crea ae oc cag hwo meses ice wg any 2 ew et usa el, Ai pele sas en ef lo ed ‘he waist wo ove eet | Seles este ptemneattonoes irs loves ahs te ven ine be iesysteat brary itl 242, ‘Typeset Laman their Features ing ath ioe pes of san th cil ines my ie em det 2 okt ing snk iy VR Lasee fea Gevambldts vit net erent tur | ‘cylin eh Selannicloechrapeiciepein — ip craic ore) Boks (nay be secured vile ed ilee foo, bom tigen ae of et tn ceca argenensanpialeumplect | 5) Rent ing pier te iapace 8M fo eer ri ent ost re hard by 2 bak nan Si’ ey canoes eae bak © inp pws cele yt ‘mealfed Tix eden leon atin ypatog sta fo bea coud eae by ei oa24.4, Typesof Lending [__breertsisine E>Ive tbe updated atone. Machine learning madels will be in ret lp t segregate the safe iy tanks nthe Ate Fife repon wit'S9' comilering switching ‘ver tdi bans in heme fo years« PostCOVID: Enka fice hh 25.2. Nature of Bank Investment ‘The mature of bak insane, thoegh UPL every thoy ps" rence HRSBAND HS variety ‘of kadjaninee ‘anenty mt sear ae acepable esl mening ple rena o ing govemment pst. a0 slo dep ‘of state and local governments. es ae 25.3. Forms of Bank Investment 1) Fixed Rate and Feating Rate Loans: Fixed Sd floating ae loans are common methods ed for borowing funds, Poatag rte loans 3 en os ean make ‘hat ets opto wrong me, "Etre tal vevenve fom loans and o iy Extimae total expenses fom providing loons nd ter services. | ty Es fn) Esme tore tax te af tum by ving | revenues Is expenses By net Fanabe find, option that te bank should take the whole customer | fon-CPA foeses onthe eof ret from the entre 4) Cast of Servicing the Loan: It he cost lncured towards applicion and payment ee eee ed ‘formula. Thus. one can look at a quoted bank a |‘somfitabe wih o achieve the st esnonic romth at deine ef he mney PO foxmulstion during the tesnnig ofthe el YE Banks investments in mon SLR secures sa omer. Renks Fsand Sate and Cen Governma sponsor intone PUPS ‘ects (SPVe) ee nting. ep gains DOS ‘ond hie for pein sectors. Investments cn include: resent in aovitefubsidiaies and 7) Bondsetentree sued by Secunisaton Companies (SCs) and Reconsrton 6) Others commercial paper, mal fund is, ee), Sine SLR invents in bods ae sued by he that setor aa prentil meas 2.5.4, Functions of Bank Investments 2 While no investment opsion i ely sale, there te product that are Seer mati jo are rth VE Sore ot eee nt “ seen Shalang se sr of ay en ina, Come ay eb Tcd are mene es wots vest wit the2) Reta! Moreages Not mongags in be Utd SRS SSSR Ree ial sn Ta rocoto heer eee ee ‘ivcamena tach as tee have vales Gat sere paymene the cutomers widen thelr‘mongement epons 3 The bos te enon 0 fo 264.2. Composition of ALCO The see (umber of esten) of ALCO vous 7) si feng infraton odo, br fr evan nr cone nts ‘no significant de bp 2.6.6. Emerging Issues With the ase of ie ow more expoed ‘competition, This Tiguiity management the bank's pln of sattying tank fo mainain is expos ign cunency Nactustons given the level of hal 4) An increasing propoion of tvestncats by banks {steing recoded ona matted market ae and ' sch Lge orion of ti ivesnen probe expoed to ret risks. Counting te se 2.7.4. Concept of Financial Distress ‘Te et “aancal ites ek i incur ad sec costs ae teed a cats of nancial dstres. When the fed cons of he bank eh the sets poses by wae non iid and the evens generated by ‘conanie coon: ‘Tec are sve fotos tht may rss of financial eaves thn allt byte ine oe pion tse fansThe igure, 2ehowe‘Permanent Strategy ana. ers from fina sce tay el Moi i se hs expen knots ena the cho as te of see fy ene Se das tectonic proportionate decease in rvenoes wil 30 blp Increase ish flow Increasing revenves or euting cous picaly esinactring propos inv ‘bankrupt or sick companies, suitable ie signe or ste, The asi for liquidating the isribtng the proceeds ‘ral or meeting the SUpused requirements. Stoge 4: After the proposed DRS is approved in Pincple, is 10. be raed by the approving Suthoties in each lender's organisation. There, ‘organization must nowmally be filed by the the vennue's outstanding deb1 gut yes aw ae oe ces sion Nevd and Sigicance of Sigal Borrones Follovig a te need and snieance of sig eran 1) The barower's leverage mess by eof degee of 2.9.1, Meaning of Risk Risk refes to he probity of ccunese of specie unfree ees. Teall, te sop a kis let rane sme Serf, an use een my be bere Manag ses of aking a als ier, Rk mangement as Felling ipa seis eros: Meaning “and Definition of diversion i ens: Whar sss enoneSomaies it rot possible to avo thik ikeae son te bi of Ci ine OS EAS (Cait ak oaks ind OS sd Co interest Rate Ris | ean Oo eek Meat re Rsk should eo en eke Sk NSN so romice te Fai considera of payment of 0 prem Th as ‘pen for va as inte Pst ha pea ‘athe cx 0 mag dies (OoS0NE. aie | ak No NIM ad te cost of 297, Role of RBI ‘Management in Indian Ban} of RBI in Risk Manageme ‘Types of Interest isk; Markt intrest rates of vain) 6) insene seldom etange by the same deg, uring ten prod of ime, The isk thal Ue ould expose the ne marke intrest Sait he vari 2.10.3. Managing of Interest Rate Risk ment of interest rate isk aims at capring from the maturity and repricing ic meased both fom the eas Eamings the total interest expense Economie Value Perspective: Economic Value porpective involves analysing the expected cash re minus the expected cashflows on “The management of Interest Rate Risk should be fe of the ential components of market risk ‘management in banks, The regulatory restrictions Inthe pst lad pestlyredoced many of the esks in the banking system. Deregulation of ‘tes hae, however, exposed them (othe adverseFin exc ts, ere, ps oo be pet lege 2 uit ea. Th tis aise bane muita capone mpl cures, I foc, any ties fs, wo havea desi pri, id at eee etic exchange rae danges enone ay ei pilsinoesie.echagedi identi Ingato exoange ee Macon te Cs, en egies ube acne igs el fen coer saree a recy. my cg en of en ha ae. ‘There are mainly following ypes of exposures asi) ceca ca a The depo asion psa ‘tone eee of tet 0 ingore hs 2p Now fine ry doy, ae win te mace Sioa a be pyse eg we me exces = 0, be ng il Fave py an eta soto 35.0) «1100 ena ease ed heey fm $= income stmt ae reste in the pat coy ean caer, For example, ag sles of US companies sido eae eign ecg eps wih rep reels ee pes. A em Satrm tle fen ene ei St ‘vel em ‘cureacy in the money make, so Ua is ‘and Tiabilites in the same currency’ will il ‘aly fis tat have aszess to the inte money make can use is pe of DOE efectely. Any resins on te Bowie Tending in he frig cueney may init eo this technique, Nevereless, money mae bdeing is parca used for casos cei for which thre fe no fora mats {Garecy options iste this poblem, ‘There are two ind of options: 1) put option gives the buyer the Hh to uency rie bat is uncertain wheter is vd ml be seeped. cumeney, where exchange rates ae exec 12 rove in'such a way tat loss (sins) onthe fist exposed posion should be oft by gars (losses) onthe second cutesy expose on ‘a ee bo ore a pd rer eo eet she sles inthe buyers eueacy. iy Forward market gain o¢ lous emerges depending vpon the diference between the "more on nag S#FOsre ta ir esunopars inthe USA. in dere ways, iy dened as the potential book, nd Banks are creasingly facing crit sk (or doesnot make a payment due ona edit card, ine of ered. or3) The nature and eon one ng a edocs of igang Credit Rik pe oe a est gating re price ofan equ dimension woul213.3, Management of Tee No et snr mage 3) Have dist acces 10 [hing and operon uss cary out te maker sk ms ‘seo fintion 5) Be soponed by a effeive ssh management Infomation tem. rmrkt risk maagenent system, 4) The oversight ofthe effevenest of the banks snake sk management system. 5) The ongoing rovcw of, and changes 10, the bank's marek manager 6) Tee monitoring of the ust of rk limits and to thir pal ines eration fm se inpleneaaion of te bus eosurng ha quintile eke 8 ibn the strstr of sporoved lini,lance with banks and money a eal and hon bid stare pices lower Ts crete Hquiiy problems by increasing the cost of bomoring’ and potentlyNeacly 90% of thet ‘oitens rast. 2463. Grossand Net Concept of NPA'S The Ron earning Adame (NPA) a ae 0 eg into ant there pero, the deta, fe rey THE DABKS HVE cli thood ewegories: Fatt no four ae _alnays expresied as 2 peceiage of dsances The percentage of gross NPA 10 216.6. Standard Assets Perfoming ase ae ningPerforming and ot debited tothe bool ce. a caviar NaN civeco the gros NPA anf axSlandard Asses Faring hose nd dou es THe bank an invest o ance eet investment ode ines fore dials 2 [Net NPAs isthe amount of ros NPAS ss: a erage vil Reeve Ban he tet fom ote [NPA. Thus, the fomula for calling NPAS i 2 ofl umber of provisions or doublets, foliows: Grosse NINA _Acconding to RB, Nt NPA iseaeused as “Todas NPAs= substandard, dU oF ss we non performing ase. (on- Performing Assets Tn exe of NPAS ae vied ito oubulAssets: The assets which remain der the category of sub-standard ass or mote than 12 oats ae known a doubtful assets Apa from the iberat weaknesses of standard Asie thes sect ae also posted with the teskneres tht mae the Ligation of debt to te highly quewionshle and impossible. Sock ‘esknese ae decided bated upon the cuely Frown fe. Loss Asets The asets on which he amount as recovery valeborers. The NPAS of barks ate incesing signin because of such rena fo he aml suena of te {ste rev ly for Te eens 0 he tof mages of ae fake : alo ingot ton eno nee : ‘NPAs Banks should be ey cae oie eas tte bonoves ad hal wy ad ne iI Characters beet seuay, i ') Markey, "Fy Aceuiy, | ip sate 1) Teeebiy in es te ete npr ise « He intention of promolers 10 repes = eV cet onvapleyees ot na Utean dues, particulary the ma ts sponsible for contin the st the dispute hetwsen the bank snd Lok Adslts snd DRT may erganse he Adalat to sete the dispute fer NPAS of £10 lakhs or moe plicable fo he loan with balance le Ink unsecured lane and Ioan agaist ole ‘of zgncutaa lid 247.1. Introduction ‘The merger refers ‘Types of Merger yee or mergers ate SOW IN te tnkleompary By merging to or more exiting basleompany Bank mergers ae taking pce all over the wold ‘The banks ae opting for mergers a arp at a8 the mergers are able to divers ik, 10 reduce cost, and w incon effin in maitaining economies of me economies, reducing the cop ‘Bank mergers are happening in he world economy in 8 rapid rate forthe past few years, Obvouly tere are reasons behind hs numerous nk mer In the banking sector of say economy, th ‘rial concer i the risk management very country are supposed to make a proper amalyss in order to Balance the deposit and credit Ponflios, Mergers can diversify these risks To 3 Slenfcan extent Drastic incest in market competition, in ‘nes financial products ad eon iol financial systems and atonal financial systems are the other reasons, for which baaks ave flag for ‘merges rnd the word ‘Merger canbe proved relly x lowering their servicing cst ein of eal merge. is done to ave fst produc this way can provide compete edge to them pei and tie service. SS appraisal of the ins, veting ight of te ‘harholes te. Accriing ode foro merger ectne, Sone cours. ezine te fot ‘Types of Conlomes iy) Product Extenga Meteey happens among the siferem produ ir efcercy government to voting stock of ana fm. The cout my regard aa egal merger for combining teNata inne 2) Moco te ete esi “ wee or eta eg arenes considerable tine in clesring and recoils "han banks that aque oer bake, technology penpectis, «lst tak low vp-radaton ef more teinoley 2174. Disadvantages of Merge? with Smaller Banks lot their aca chars I be some greater finn ‘adr economy because ofa ew lage ner ed bans, ‘These findings do not refute the noson of benefit synergies between banks and security fins. However, they may suggest that the favourable ee fo create new bankig ing bank 0 ng 3 ” 5) Me may aso create aisuess within the bank employees, 6) Ie will weaken the PSB's & encourage pivte sector banking. rset Sop Sore gma 217.8. Recent Trends of Mergers in 2183. Disadvantages of cou ms Sector, has been decided to fame encourage mergevlzamation in the oes not empower Scheme with regard to merger and aalgaton of be tansacion. advantages tis fend o hostile process. Infiendly takeover, the companies nezoiate about the cooperation to be tractiveness of Federal Deposit Insurance 2.18.2, ‘Types of Acquisi Corporation (FDIC) Assisted Transactions There are various takeovers according to the typeof Decreasing: These tansactions are much ess acqung busines and the Dione howe sspeied seciely under the State Act With that under the2.19.1. Short Answer Type Questions 2 Wats capita doggy? 2) What is meant by open ended los? 8) sie ALM, 9) Whotis inane sekcss? sndake te whl presen According 10 & save, te atsetons is 321. Introduction pica snk acou.rete ese ld a ede ee ik ag 0 my ll dor 3) Pama Oakes or Bar gs: & aks ge sitio sak a a ate ff pa sleeps isa pes, Det eh deesabaesonpe ete eed a ety es seedy eet to 423 Advaniags of Paper Bid Payments 1) Tye se ea ee unk escent ca 3) arse a omen nied eae 324, Disadvaniags of Pope Based Payments Tetihaaysehad eee 1) Herat eh memiseowe 2 gcd py nes aes ke 6 peti depe i, 2) Toe eer cos Fe ye wn inne dro Rythme bee ote sirname ib. mate tse, yen Al es ts Pan Tr ss orc” Dee Re of E-Payment Pe is bail be ea ae ed ms, ‘smseabe a) avis nti es pais ih vay il tn waSme, de dem pm a” ‘ele ei ping i epee era co, 8 i ern ey it ‘elderly Tiethpe 13S Bact Ceaing Serie) Ame Chang Seve es» erati cet peste da: fe ae Bk ‘tims aes psn Spevintnertitohn Hepes I Memes itoehocanicraeer eS 98 Cre tT easter care Sige Sovanmenvisarienae 1) Advantages tbe ECS Wier Le Corporate ceils ft es ‘Setanta fof es icuigeteenesn SOAS nite FSi osee Remand he es el tg at ay to sneerdnncie cl cice stale iy Teenage sige decal ‘ts of psi inure Ue chou dig ape ad ak ‘a sayeth by ie eles is shitter ori eaten ecg ited inn te yg M Pitre me ca Hage stint sragettooe tS rc, 2 erences Te ea Bi ake sry et Seta at te ceror rela a i Tepe nina rin 2 ing rete in 28 Dinu tes eat boas, 1 latin Sao Declmaiepoml “aed te 4 Blt Funds Tae PT) Brin te ps se fal oe na is cy fyptezelepseal ye Soke of nl cd min ht ce EF ew si el hat et ent esha ei ees ak deci bak esc ct Prob enka ty ese mdi Tene Bee ed ed yay aba by trot fats tas ewe ee Pst ps ct pr eile aap ‘hemes eeatbeitbal cfg sae ie at emis Seiya ame a ele ‘sft Uo sn oni ad ert ‘phloem S36 tye ‘es ty SL Sea ie ee pl wie Sash esina 1 Gud Toate Ts Sets mae! lan ese gen De eke oc oes fc tas pe is, i se ei 2/4 Tete Ts fe pet sk i eg ‘il af mone, ey, wat, Det tule etd ‘drei aavodby e pre). 2) ie fa Tt oe otPURI seve e sua te we a th Hr ba tab son dy 9 High Vatue Fund Transfers Jost lke a on of ost ign account OF POSES isa, socied with rsorcliatin g et of instrament eae, — 0 Gee era debit ter ped Funds at EFTPS. also takes pce only ‘through the ETF system, ert. 1 Hah ) Fear account being hacked 33.63. Working of EFT Transaction Role ofa ‘payinent gate EFT wansacton, athe of funds takes place the end Final setdement of funds takes aricipacng banks Usough the = and when they take place without any ime) and they ae sealed individually any bunching or neting there! (eros 0). AS the system is managed by Resene To twig down cng cot of wing rinccions whichiteles ehh 4), Tosearch new avenues tobe vedas adie sure of revenue forthe an, 3373. Process of RTGS the next step taken by he Cental Pesos 3374. Advantages of RTGS RIGS system is bene for the paricipons Involved inthe wansction, wich may beat nom 2) Faster Coleeion of Funde: Te rosement of ‘nds 6 done qulciy de to te tehwolog shorage being in favour of RTOS. Te fae Colleton of und el 5) Les Braud and Less Processing Costs Under the piper mount of tanettion more than Lakhasec. se a ms a tei co eplons of ie Ree Back of Inia. Ts EFT vanacons “tooo ime tlie secured, 3) Rep Setlments The catenin treet finds Wy enplyeg varus ual meted of ‘uakng te al sch methods se cerry As We enone can sae ane fide fo ‘oer cnt wine econd hog NEF. 1 abo goed enter te tak Bose ene SAKA Disadvantages of NEPT The dsdranagesof NEFT ars fellows: 4) igh Techical: The tanacon of NEFT ‘hough eet tanking ar ih techie a se hss ary pemea wit ble teal sty of hocking and is sick at vey omni tse tev te ans ming oust oso eee he esc of NEFT, 3) May sujet to Day ia Transaction: Unk ie “ele taking the seve of NEFT doh eet ._RIGS VsNEFT. RIGS 1S i Ral TefNGRT Nal (Cos secret "Josie Pn Fa Tne by Smee by Rasa FontIAIN ae wn sng FSS) A rer ae ag ae oe ec ting 8 Dr seal ad mei ESlar etches ae ara ave seer tok SCE hy » 5) Track says 1 ross il paymeets guts 1) Keep a tock of morgage PAYED, lum, savings, 343, Usesof E-banking OF in, E-anking is ining popularity, dae ns services ofeed by hanks, same of which ae lowing Payment Service: Payment of bis ering to asous serdce-providers, Me ih he concer service provider trough Bet repentve bas. Casomer alo ave an of 1a setup sanding isocins wih thee tls foc the payment of such bilson due dates. Ot the bass of sich standiog inivctons, for providing such ‘A number of banks offer an option to their times ther ae noe fsiomers. for buying the units of mutual 2) Fund Tran rosea fone bank 5) Recharging Prepaid Phone: Thi irespeet a such counts ae mar options are av od ‘from the traditional ir fed by ha. 4 Now gen such as HDEC Bint YES Bak Koa 344. Advantages of E-Bankin AXIS Bank, YES Bank, 344, Advantages of E-Banking a Ebonking i [A cslomer ean open account teeuph fan ing through Iateret Banking: An sstor having Demat sc bya immediatly whe the $B acoot i credited Mier owoday (T+ Bas bone fieTk | no unt © Easy Trancaction: 5 wid a Src, ak ‘of eleeroais ba | ‘without any hema ince and Efetive: Transactions cried ot AMOUH lofemet Banking sere high fa 2 {fcleney ad etectvenee i concerned, Alle {Srsosial transactions ake plage andra sured ovine ia a organized mmr ino onetime registration 1 ‘with the bank, signing of a form, and peoviding sporpriate ID, ete. These requirement diflet ‘om Bank to bank. 2) Learning Curve: For custome it takes sme ‘ime to get familiarized with the bank's webste A cusiomer underling any banking wasscon forthe first Sine may have to go trough the tutorials - reading materia or videos t fly understand the metheds to be wed for 2 undenaking various banking. taneacton. THs spe Bok count Check : leer] ieee ormnel see aoa ea é feels fully onfideat im earying out any of the ee Pe nking rnssedons. | E> Bank Site Changes: The overlook of 2 2 tank's website Keeps on changing. a adion of 2 : i iaseument. AS new product, ope USed feeh sour cas However, the preset ple | smowey defintely lack suet infrasrctre ‘Ales every tak ta ntoduced eet cards ant 2 ‘ery ed sot lining spain Feats. Ba Shere ae cen things nekanged ike anda rex “This eliminates the ned for caring ge led cofcash whih sky and inconvenient a Concept of Plastic Money 2) No Paperwork Required: Sace plastic moxy Money or polymer money. made out of des mot reque any paperwork iti ae is way of paying for convenient opin fo maine paymeis. One mit rooney was itoduced Simply slo sige her erat he psyact Inthe 19505 and is now ao esenal form of ready corde aacn wilt competed1 IND A, wedi MAR. and SERVIRED, ai sling balances ag recharging Phone autbosicing a purchase ard throug cad tor ‘hip can be read 20 tre more efficiently tSsnower company pater betwen a ed od Te,©) Mes of the With “one of th 356. Frtlowing a th 8) Service charge 1 Gato ‘rei can bills and °” over fully o¢ para for which hefty tae of res are charged by all 7) the credit cand companies, be padi stale), in this regard a be on charges, involved in etiag in ecto tering ctr HH be fe te ceaht and ton 4) Dat cars prove to be a great comveniece ing the pio of ts Store Cars: tre us ae chistes y two way arrangement, wherein the card isi= FUDAN Cun smeachange Mk ay othr cuneney.9 Fey Day Spans Esse ks? 19 cal acl) san i elt a i ed et oa) 364, Advantages of E-Money Be ney es sel ates fe thd eae cae 1) Teese Fey and aes Te es ‘it tig dled epee pss dps doe 3) Frees Fed Aciiss Sie lessen ms eae dd itl ed fh ey eae ae ise ey hep a eu ie lek of as fe ily isa aos aon Net axa eel ting ins Ie ad iar cb gs ae ei, poe Ci ie gk eof {8 ce ican be mela eh i as ei ci 8 Getic 473, Typesot ATMS Trypsel AD wy 1 Ot ATH: Tepid AM ld ise hb rose ‘otek Su Taye ‘beat tenner esc omnes etna fa peste 2) Waite ATM Toe pe ATG ae ed nity quien vce Oe ha fe mainancusnnes vio sl ‘arya an, "9 Cape fom of AIM i ina ye ay cise he AT ea ida ei, ‘akin sant et On er ‘fico eng che he nthe de pat pee 9) Mbte AT Tee ria ATS a by Gchs onde casnesae eater fe ee soil eat et pes. Theaters Wipe ADenca ts. D4, Working of the ATMS akg 1) singe ies of an AT, 2 ‘niin st em Cakes dhe ge on AT me, ft peed wi te ns pil ean 47S, Forecasting of Casb Demand atATNS ‘ewe sue tn HOH ATi lone eshte ee sins wf ob A AT sie sis po gti ot than 0-1 ATI iy peng expe an egies ed 2 ATA ey ald R25 e RSL nes Tease 1520 ean pl ATL asi oe vale RENO prema a Ere aT Livantages of ATMs ies ate extremely Beefy rel as Weir customers ath demand behaviour Oy ean } i‘te Reserve Bank op peste gr - stent In tan yyy | my 384 Scope it and 4, qr Act, 2000 Pie tone he ea sare ye - ee = sy oy nla tom, ofc Iteret Milenivn Coppa sions 28 fey 7 "Some wo ey secs el tay Te INCA par te ne a ong seh Sit sence ey stom io gracing ys 2) AY OR FB wa ioutbekoowedseorgy Sach propeny ty aes ree ie gts oder the DMCA. peele may be nif by se TGNICA Iter 10 the inthe Ad. EANMAD Conn 38.5. _ Definitions Section eto npr tng Sea 382. Objectives of the IT Act fae te objectives of Infomation 5 Viice_ of paperhased communictig it givet Invi tecognition for Sd public key tony edi spat. 4) Certification Practice Statement [Secon tecni ooks of secant Pe neae eicacst ised by 3 Stupn. meson resco.se St a agg, - Ne a ey \ fe co rene Sn ‘a th eng ito \ : i he RMN rly de oe COD = | 392. RBIs , Docament 2025, "Mn Snag Sigal payment opr in toniece Would ue gil Sees ‘tsig Camewa for ‘isd poynenswoldbecupaed 16 Blcronie Signature Cerifeate (Secon Enoconi Sigmar Cerfete mens 0 ‘Lesoni Signature Cee iud nde Sao0 $$ and includes Dial Sinan Conia AD. EIARMDD eunns ‘oat at tine foe eine Highs alopon ipl payne and avoid esh eco "osu mpeored wane none 1 spt of he specie inka, nlaing ‘Scene enone tte aed [wees |“ [ovat raion | croc | [Weave inser Bale ge apip a ‘ence [Congeetie eves [al yee ize ra cane stctegic dretion and implementation plan for is ‘evelopoent since 2001,Ade EUAN enn Jocrrn Pantie, roids catsneamana ransier Parad 1 eres in Panton 9 Cad J eames pectend te 2 ‘he bak and generate ofthe cre ea ‘ised wanactions by 8 Gach 10) Reduction in Cash ny percentage of GDP.A). QaIANUAD Cun secrete RET created 10 92k 0h, Is of Ey aks in oer cy logger. Whatever the user ype 0 scoped and 3a Dg Banking re men ee eg senna ‘perl “chances, a ‘ium password length 2) Encrypted Data: Porn Pubs SECURITY} fobs taken by RBI fous tomer induced op ane 2Ads CAIAWAR Cui Unit 4 rctcsvortn ni nether words, the rads a Shake 38 they provide gf AMA Steg What ar the bees fers Bankes? 8) Distribution of Risks: The {ute te funds Ta th peAbn QMANUAR Cust ‘ct baking and ince he eat a, ice Ws In ean ini 15. Objectives of Ad axius objectives of te coumay. tide by tly of mos the sing of he pati invest a prt in a aes seve a ons ich etNe CHANMAB Cun ofthe purchaser who psy eh © dscouning tbl Ieokr or dealer factions, maintain the cet ‘for previously issued securities and also gives | tak wil have to giveth whole anon. 2. The plnning aod imp olen forge and asso,fe QUBNUAR Hiss some iss and pts ‘aso ealnges fr acai Sransad domed of the eso, The SM 432. Features otnpee, as eto pre : Frog ong SN a a eae a "eed coc do id satus whch mas fe we BE iveson alo da an pet Oe abs casa jest elation wit pet 0 Sit an Wa eg eae > aa may ang scopy, site WH ag "3 is phe baa ss ude any sche yor me ranting ston oc, sepa my ie bel et Cel Goer pei by Rese Bik (Arena tide ail re “pach Options “as ge 4 Lack of Speciation: Thee is bok of ‘peciaizaion ia Indi at eich feucitl basins which ce oe high wan 6) Lack of Eisen Risk Manoge ue osokliaion of th econo Fanci ltrnltin 9 be hailed mae Mowat andAle GHANVAR Sin 7 a i a cry, 2) Real Servis to Smal and Medium Busnes: Solomons ts Seam eee la corer Fonte,fant en ne i Ads QaIBMAR Hints 2p Est Rezuatary 0 each NpsiThe rutAY. CHANVARCH nat Soa nso event as fests Leasing oa LAL) ato et mw ‘ese sop nna 443, 3) Onmersip Separated from User: One of ‘main chractenties of he lease fi 4) Term of Lease: This i defied peso of tine ring which he lessee may keep ig the se such periods not menianed exp io ‘ich convaet may be eened ‘oid. Such time prod may conespond of Some less are perp ane fora specified prod of tine. lnvesinen, conesponing interest rik for tnd minenance ages bone by them. Involved in Leasing 'me the min pres engaged in a lesing The person who seo ents he propery Caled see Such person may aka tec edie, inthe case of epi ees Forte est leases, sch person is krown as atm. in Spel fo) Masicer SO of Leasing 44s, Dieta ln Vadose PE ded by theese for the purchase et depend ona single see for rcovery st of equipments Normally, operating leas Provided. for computes, offce equpmens, ulomobies, leone, Features of Operating Lense he mi Fetus of an operating enerally shoner thas the asset Tn many cases, the lease may only Last for a few hous ora few days. pa testa evey gy eid Dilfetence between Fact ey 1 Spey Rite FO Rise [fase | —— 8 Orang Lee Fetes] [ay Onnentip —f ewe ot ge aaa Caney hate Leased Nalicanee "Te sot me ace Fearn oes rtpA). QBNURRaSHs4 \ Fare eo! my 1, Financial py, 1A doen sig ekg 19 0 ire ee ra iersatonl Lag! cones teh ae ee Site, incomeat rte it SOS he real ‘wince of res wil be only 82000, 2s pert requirement step he Iesce eed to gt [ek Yah _[agnsi0) the lessor Je. The ger eget ‘be repay the loan fom he ss raced ssa a) raazse| [isaAbe QraNVAMSHin “Tis i done using he folowing. Prose Value Factor cra vt Oe me ce steps Init uty ‘aati ae may Note: Costof Exuty= 10999920 M00» 2 ern sa Colao of epratin Tews Dep Book ValueAbe GHANVARSHNL vas | Book Value S*Year | Lew: Depron tanaux 2) ook Value ‘Cost of Eguipment tLe: Management(non-efundable Fees secu Deposit, u Compuaton ena Discount] Pree! Vale ' o9n| 2 asa] 3 ara 4 0s 5 6s 93300 BSD sare ‘Rrerage Anoval Cash liow "24.23 resent Vale Factor =i investment Average Annual Cash Islow = (24,000 + 22:50 + 20,900 + 19.620 33595)+3= "24123 Inthe Present Value Annuity table, vale near to 387 for S years btveen IRR«LR+ EES Ee Dilerence Cnet Preset Valve 3407968798 ‘The weighted average cost of capa 4s 8.79%, Hence, ts bene )Opeaing espn of eee se ‘Shey athoster ee Advancing term loan from ‘oatetenee, ecued. azn “dieu and oper te ith ery To equity Spal (ned fonds) and sobtanil toromed funds and) deposits (cuside bie), ‘Thi way, ey Rove. bigh financial leverage, wich leads very Big exam on eu.AI = SOMERMAR SH ina Disadvan ee Intages of Leas ‘during the lease period. There is no oom for delay in lease ‘sental; option of nance is also aie, 5) the primary lend is nt taken ito confidence ‘te ‘with elfec from = be duly informed ‘wm wil cancel te hypoecson isan pariclar ante. This Ineoraree company, © Sometimes, the lessee may commit payment of Fease rentals. which "subsequently becomes beyond his eapacty. 452. Meaning and Definition of Hire Purchase Agreement bbe used for financing capital assets as well as consumer goods According to Pearce E. “a contract on hire 1) The ite purchase price ofthe goods 2) Thecash peice ofthe goods, 3) Theda of commencement of agreement the owner in addition to leting the goods out, farther 456. ClausesContents of Hire Purchase Agreement Felling ae te ms Involved in Hire Purchase Fotoing ae te 40 ah pre wich he ther sd eevee be igh ile. The perio i rege pede though slit peal 5) Rep he i eu et eee ote a ake the pie aproval of te ower of he bya fisncag company the ise purchase customer under 3 acing 3) The owners cs the hive pureiaser vpn De Ps ——Ne SaaNhasiit 459. Financial Evaluation of Hire Purchase Finance1) 2 pormUUSHiN oan ws Dowty ‘rt "oth “chee company soul sae he ehpment oe hen = 1020 tant MOE oi te iPad ESPs thi emia cei i td SS ce Ve ne Company (ie-Vendor) rine gta fm. Th sion eae a rocco fe path fa a OO as ss a gata Penge ny eV —— rn a ene \ alo aga eee — cence fe net et co cone ne aes senatan Fron yea ages NEV ye NY uy cost ewig eens ood Ae nin iret cos an etsiion. ane, = om lev renal nde ease management fe 4: Use above example asing he foniag: ) em ef osc te eh 1 of he mew of debi, 20%, " sia Smee 080 020%3 4) Preset Va eo Ato of Teta hag foc C-SOYD Method Yer ‘Sovorsea Temal CSTTS| Baise M6 = aso io \ 3s. 2 2 2assate a 78 = 225.91 be Wri r tl 666 Bs) Present Valve of Tax Shield = (Annval Charge of 1" Year PVIF coy tu) + (Anal Charge of 2 Year ran syn) (An Charge of 3 Yese x PVIF enon) TE RE 0853) + (8.4 « 2654) + @3.04x 05TH] x04 (040 = 1962 x00 = 2785 lcwane wot Me Wong tors Sece Arpad 1 Mot Hr Reda esi 2 ree at of - 6 Monty te Pat 3) scat stoi Deo * easiest REDE gy MFA 8H Ty Pst ae austen ODE cote Veh, saat 4 Paetsch then a ne Cl Ga ect koe ee gpd tO pngosro et ha Fe oa Al Fine 8 Inert Ta 0) a as in asi Ines Tan Tne Vex PU cs) 68) ween oti 80 Wrest Ech 2) sie a Renae 9 ee iTS bccw = tte 4 roe Viet Ria ie 9) Pes Vinctbeetacteetank 2 = UakeOM AMX ld = Whucomansosteadsetee to 29 isonet en pn ae of eso 2551 chip pi keno ie tp wer oil ant lie of eta Tu ei 17 2) Te PV abies ei dee Ve Oe ape.AI 6 SMAWAR SH Pore 2 Fower Defaltrs: Since any df in pee ‘st i the loss of inc pad td ose ‘Therfae the incense eae ee 9) Recycle Recovered Funds: The bank perf the duty of eeyclng teen fond 4 1. Disadvantages of Hire Purchase Following are the main itaons sta 1 NE Encourage Lavish Expenditure: Ey saisbly of fnance may encourage canst ‘purchase the pone beyeed Fotare In 4.6.1. | Meaning of Underwriting Underwriting is the agreement between te ising company. anda potion Sern Fri fi stanunderwrie {ht be epee as ase ma Bown by undcning SR Re pon themselves 10 se te eon for ere eee ing to Weston J, Feed and Brigham, val Tanda are *Corpertons hichAlo SHEAR SHI at Te SEB i Sete ee ne et te rae es cis of ep I a nd ee 1 eit cana day Be AMC api 2 el cate te tion eng 1 Be ai the inte reethen newt bey ao te msn, Ye Ue apes 474, Chstein Of ete ren a sn ac = ead ‘atorsl sige [cesta] [ecm TiC] Adages of Openiinde Seenes (Open shen led bya fd is San ‘Coeds [SYP termeAl = SHAWVAR SHIN ecm ene aoa ier i sac 19 Pes ie nee m moe nny | cain mips am Sw oe | ees ool oy St oto \ Sand wets arom Sees ene ML as de ly teem eta vende 0 Me inch tte cane peroeenons 2 of an pence Samet ine entedeadeyenke Tee mi, A Ne ce Amgen cath, SoS see ey ls Ditcece bteen Entei OF ane cag ios kits ots vi ne aon hereto 4) iy Lad or Frotend Ln: Cages ‘tt Oo atom on Snes ‘ita ee. en Behe pms siheoe Theo {i Deere Lad: Deed ete ches eve doe ped spd era vie realiAl > SHeANVAR SHI 7a. Broad Classificationteflon tastes the dhenifind det oe be the ses inva A re ecenicly rife. Al = SaIeARLEHins CComserience provided by + ‘re same by any cher © Se exper, wi the fli inion te the see isetvey song, J re swith 2 regpar steam of Grovtiand-tacome Fund: ‘row and ®Alo SHavARsHins Dprecinia for Berio. 4 roel Management At nid 2 veal ines Is neiber equiped wih Ge tet invest in fil mae, Theft sesk he elp of st exe, tis ier ey ior arte ya See on eer ade aio the cil a 5) Conese: ese eogh is tony tie and energy Comes way earth mae 476. DisadvantagesDemeris of Mutual Funds. fe) Hove 20 ‘rin Be fom ofbs Son tAdaNOY Unit 5 Ths; ‘“rance and Other Fee Based = Financial Services a FON and een heedeattes inca eeNI = SS ENURRLSHIN atm ‘Term policy 18) Accident Insurance: This ype of contract seis 0 sigue o repay Ton eter completely oF ply upon he oxcuence of cen fotngerey sch ate boomers death, yet 1) Public Liability Insurance: Pte Habit insurnce offers protection to he ase for any damage crued 10-3 hid pary’s insure in an able god fai ots that he asued person is duty bound vs rypeClssifiation of Isurane, 524. TypCh ep Flowing 7 Tiere eee fer periodical paymens dure gf the insurance pat. Hosea nly ifthe insured pena ose of inset presented in the wrong manner by the ine ‘hen he insurer's bility Becomes oid is Iegaly pli them retain their Basie Level of ing insured product. 3) Principle of Indemnity: indemnity meane ster th ‘Employment Lil inne bp the employers wih eas saeory pment Feed fo be eplenes 525. Merits of Insurance Inutaee play important olen modem business steno. Folowing aze the main significance of Life insane maybe of fllowing ype Te bins the ownership dghts of the propery which was the avbject mate. of iosraaes rane: Tis tye. of cot sere openrion fr To 1) Protection aint Risk of Lass: The man Fonction of insurance fs 1 provide protection jones applicable to al ontats which at sabes indemnity.KY = SIBWARBEsnn wsseoot jas of Insurance th ey "ote ite. 4). Specialization of Labo ttnsfered to the fmuance compaay whch ore pecilze in undertaking such buen ‘Act. 1986, and the ‘Gene (Wiationaisation) Act, 1972. security. Te belps ie providing cease of ae D 3.2. Provision of Isa atoning rv ME At 935 eines tar op Tt eh irae Bates Ap Sen ome eee Sate any oi = India not tng of te vate company body coronte nce ud he of any coumty cule Ind nt mare of pra congny, iv) Every notification ised ae he o> Seeton shal bei ef Pie at Soon 35 may be fii, (Copal Secon 6) |) No insurer incor ae wh eines carying.on he busines. oe ace ne Ses Whether sly ein comeio hyreo Ot arte pen a || San ee Froibiion of Rebang Sean ee ee pine Commision a Liege wpa ms Gr "Proton of avmeat by was at Povied at in ace refer in ase (2), 4) No insurance aget sal be ado cout fy poly of le asrace sd in Tia by fo be paid ty way Al 2 SIERAR SHIN premium: ty nace efened oi Caste) of Sub- section ot se aces arncteeee eo pate Sees aac setocorininie tomtom Eta at Sa ens eeheencamde Enotes 2) Insurer has reason to cancel tay wbae of Oe premium shown on tePally, nor sal any pean taking ‘newing oe conning 9 py eo sate, except ach eaten eae iE licence to act sa insurance agent foe Ppt of soliciting or procuring insinoe bans Provided tat 1) That individuals found to be of onsound mind by 2 cout of competent Jurisdiction: ©) That individual has ben fund guy of criminal misappropriation or esimiaal, breach of ust or chesting or forgery or an abetmeat of oe atempt to commit 2 Such offence by a court of competent Jursdeton: Provided that, where alas ive years hive lapsed since the completion of sentence Section 424 ening ito st geet forte pupose of rin, ea Se er Seo ome onee re ce smamging agen, acy sch ston. 13) Dates and Power of Controller ‘The dues and power of discussed under may ask any report in this connection Controller can delegate his powers sai | ‘utes to his subordinate eergeny, the goverument may of lisurnee for cing onions 543, Objectives of IRDA Act ‘Thecjecves ofthis act aea follows ) To promote the intrest and Fgh of policy alder 2) To promote and ensue the grow of Insurance Ingest 5) To cesue speedy setdement adie poset std 4) Tobiagwansparency ad ‘nancial market dealing wth nsorance 54.4. Role of IRDA as a Regulatory ecided 10 open up the fe beter coverage tte fr boostig the om 5) Tosetthebeachmars forthe performance of the 34.2. Features of the IRDA Act ‘The main features ofthe Actare as follows: D IRDA will consist of a cbs, range ids. 4) For eaarng thatthe polleyhlders are provided ‘%) Special Duties and Power: According f° ‘Section 21(1, Controle is authorised3) Quatification: te entused dhe tsk of seg "sp code of conduct. enchmar and qulistion 1A promotes the level of ‘iciency inthe indy. (8) Professionalism: IRDA prooles and regulates Whe orpanizations relaed with the buses of 7) Fees: The act also determines various fes and charges tobe levied. 10) Books of Accounts: Ie specifies the form in hich Books of accounts need to be malmaind by te surance Compaen and" inurence 11) Ponds Investments The act_monior the Snvesment of funds by te isurance companies, 14) Supervising: To monitor the functioning ofthe ‘Tant Advisory Commie. ‘Cena Goverment tipson 208th ime meme coe fe person each ie a pas ‘prospectus of any insurance product sh early sate eer vite he In e process of te gee by lnemediy sal ea ean precio 2 theiRDAS i The cours at by Under Seaton 1938, an ws tea cb oe nee hee The coped pain aly 5 lsuraneitermay 6 rominenty ‘ection a5 ofthe Ac. ‘tthe 4) Where x proposal fom i ot ued he incre etna one oly i confit wid 9 peed of 1 aye Imleading or fuse lformason on 19, ae 5) Marve he tenet of somination is wate to Ge propos in rma of fe oct ate te coe (Proposals sal be proce by th inet with ‘peed and efficiency and all enone etek ‘Sal be commenced by tia sing wise ‘easonsble prod not eneding 18 das feck ete of propos by he insure 547.2. IRDA Regulations for Life Insuranceinnovative products and ‘others have nt been ® IRDA Training Requirements: In Avgwt 2004, the IRDA pl ty of ULIPs lies inter pe ims and flexi The IRDA. and market regulating ian Goverment ended the "vary in 2010 with an ondinance declaring that UULIPS would be regulated by the IRDA. $4.73. IRDA Regulations for General Insurance In exercise of the powers G4R(L)G) oF the Istrance As surance Regulatory and thority, hereby makes the folowing iy Ime be eaity or egay related tat ath ene gon ‘in to eat deepest ee ge mln cbjecve of verte opel Toromat thew of igen xls ‘comers oe 2) Use oeio developed tsstry sa make them aera even. Topetinmetion te pi ses, To enovae ad morse vas tetalogles sdbuines prices Tosi edo’ of evan tcaoges, © Gove of 553. Methods of Venture Capital Financing Tie ee of ven cop Gsnig ae 2s ion a 1) Baty asc: Veonse epi! uadenats » Witty ape! acs Se tony » {stato pod sins, ee consieed for Taig escua te “Te venue capita nati ives oes othe al ting brogrunmes sich ss but nee linited to 6 Seminars, werkshops andthe like for personel ‘engsped in General Tasrance busines, amp onceming the General Insurance business.AD = SIAR DSH pay both the interest and royalty on sales of he we weno lower rae. For example, Saancing of IDBI provides fen = : chor eo con 4) Participating Debenture: The rt ng te rot debenture charges interest in thee steps 19 roa prince: Inthe thie Fest ep, here no res charge 00 nce sep there i Tow rat of interest charged 10 00 ion if the frm is no a point and in he last step the ate of eters APE Staring exenses 1 1 OO abe very hgh proce funds wetting, Parcipaing “debentures, iawoduced by THe Community of Fisanisl Corporation (TCFO). S54. Financing Pattern under | Teancsion of mutt eopitainaton 10) The sae of owner is evide secoring to the expected etme on the anicpied Investment Fay Sage Fes ‘There are Tot of seps required fac pocuemeat of melee ‘ether wide can, RD, etre ef te ng Deal (Deal Ocgoatn: requis, the continuous ow of él The ele yen em] “The four basic stages for making he project ae as ‘Development capi 5) Brdgslexparson capital, Sncividuas to start anew bases. Screening “Fe according 1 te broad bss oes ‘The VCFs aconing sos public only ‘when the company is in the postion fearing the profit andthe market cones, ‘reals favourble for them. The basic beselitot the exit route is thatthe price of the share 4 ton. Thee area Some limitations like high cost of issue, lowet demand, et, be used as thes tocaton and tage of isnAdvantages of Venture Capital ge the mats advanceHere, te person to whom the payment wil is called he pay $64. Work Te fe dawn Oude Ios and ae iy These ils 6 ‘this [5 one of te main ve ils ae dst USI India a gg 2 eet ‘aie ouside India by a arty ot rent Fo rave in Hoda bate pupae prance bills sStem may father ddd ato to ‘Acceptance Credit System: This ype of commotion ils: Acomnoicion 2% 35ERom artes wind aS 1) Assured Payonen: The acepance ofthe il by I a te te bi ing of Bill Discounting smmorking of Bl daceomng 38 mecha owe ) xamintin of Bi: The bank eect th ase tnd anacons of bil aad ures ate ‘tied documents have een acted w nel tye denen ae 9 mt sr ae ce4) Refinance Fas ciliy: The bankers may ail 2 Types of Factoring Aree see 522. nestor Arrangementgeting a FETTER) ge ssc ni 7 Rul Factoring: This pe of ign Provides the mitre 8 ober ges of =e eee, (amr ha “ _ Role of Commercial Bank in 1) ‘The tient oles goods or services on credit, Soch secs or good are delivered along ith 5) Coster pys the des to facto, (9) Facoc makes he remaining payment to the clint te time factual collection ofthe debe 8.75. Advantages of Factoring ‘The min advantages of factoring ate given below: or Clint: The cen get folowing Denes ftom factoring arangements 4) The let ie otered guid as they ae not ‘eed to wait the dae dae of He ivoie to receive cash {The cist is able to provide better credit terms to the buyers and’ thus is able 10 sete higher revenueRule 26) of SEBL (merchant bankers) Rules 1992, defines who a merchant ton According to M.. Rosenberg, merchant bank 2s, TAB ‘rganision what underwrite sccriet for <0tPerations. advices sich int on merge ‘involved inthe ownership of commercial entre ‘According to D.Cox, “Merchant ba financial insttatons providing sper ‘hich generally inlade the acepane ‘Xchange, comporste finance, pool manigement and other barking sevice 5.8.2. Objectives of Merchant Banking ‘Merchant bankes play an iapotaat role in Ind financial secor as they failate in achieving reaton of api banking active re te feces behind the fomation of 3 secondary mahet, which xeourges the indusial actives in out county 3) Mercham banks feciliste and boos economic epee 5). Appropriate Goanil suppor ‘merch bankers fo venture overall develope of ote played by yt indenters 3 mento saved by th company. foie ne Bers at a 1 Fa te Pe ay matt ayy tof tbat stock tof 2 He MANE tay ing the dta in respect of sponsible for geting iS pplication money collected at aio brane of ake, BRS do 0 eed ye mercan ec tne eet of vents undeaen by Ng 19 cast buns tte the esponsbeen oy Seige pees on eel of Merchant 583. Functions/Role a undertaken by merchs The ora stile undeen by mer ia vanes ped Oy nat as follows vith the eospecs tthe Regisrar of Companies eC), ily te nce Fanconi Want Boks 0 rk i 0 bo ett Pid in respect of the Zoplisions axe made by the mais pat of tis tapon ofthe evhed onthe ue. anon we 9) Colson of aptetion oes wid be ‘rpiica money fe tenes, hina of 3 proper srl of the leatoesoonies “rcved tom he to fi) Maimeasace of «proper cot of mies ide eer ofthe een 1s) Advising he sur in king decision with ‘Sra te bi of alent of sues ieonnlacco wih te sick ») Flo of be aomentof sews sd isunce of aloe eters 5) Debeature Tree: They a he sees spss sppoined and crazal wh the ropes ‘Tr ppoinmea is made by he ser of be dente eos ect ie Detenae stes re eid get emcees epee sack wh he SEB, eee they et ty aigamet beaters 6) Ponti anager Te wm ‘pol’ ees{paste ligt Sey rinse Me Serves ant ikigay aan tt ote mena aka ee se F ved Tea oi 0 he itty {ese pi ee ken he Pn va acs bee eat ery a be is 0 hn eign Corey Fin. lyfe Coma ina evo ae a ye eh Sank a bes developmen ist keae oe tS Gare o Ree” TA ces y submission of REDOrs to Whe Set; The > sears sen be ed SB tS inspecting aha of series ted by mechan ‘bankers is fraught with risks, Gs related 10 any ted or found erp 588. The SEBI (Merchant Bankers) 5, 1992 he proper working of merchant pease > es a Soin ae en octet ane Samora oe “upon cn rome ae spn. Tesch bask wl at te allowed 0 inthe required mannet, iy The ect ver cmt sa egy Th et aes wis wa ) For safeyuaaing ‘atthe hooks of or does not rv 1) The we ‘of merchant bankers would secouns "ae managed inthe ‘contro the issue of fan from be asf cancels, reseed way, het ie ieied in yee ‘alley20 5) Publication of Oder ofS ') The SEBL need suspension or ea in wo daly revo (On and atte he the Secures Laws Act 109, US npc a) rita snderaking a " (Merchant Bankers) Rega December 1997 1 The appient she tune rrr » > 4 {Whats mrean banking? Case Study 2: Fixed Deposit verde eetd yeaa? customs fr a =~ 5) The spc can be » copra bay eving ” ™U™M : rr enone hts Boe ga ntti ig LA dy eh ne 8 each yon bse fer cs son ne Hoe moult Long Answer Type Questions Jos weed? Wee fee based lian produ ang es ound thie don sth pons of sae Act, 138 rahe be en hc sha uch vill ove abe nt lf ba ca Sa a depakote dices nh aya he es wth il bere hs te cea Case Study 3: E-Banking Wi, rough iv apa ers Bekig Capbiy Ennis nl inns ‘ad laine epee th one camel Tote ten eu eh eet soo 6) Examen the ubtg ad vantages of 1 Bene whing and ssanaces of acsoig 5) Diese let SEB nde at backing op abo has eee bacon of cqiston and serving the FES mgr inpene nie oot eins an ies ecmng Srey a spares Ae Mateo ens m6? 8 Wha eGtof e-banking? — ects ei He py thi ox ovemst Bo excl and wher MONE BEER ty fies eae of ik NIE ESE ay oats. pose Satin: ees. ow — veeereey enonten, sinetomacon.compciaary BERANE treet, esos for Rai ‘es Ll shoe et ei compas 1 Raa eh tomcat nee) ey evi mast te cna ey ih ty hae Ge won ep. Tey ol a es oc obeis, 4 Debi soir ops are wad ean denn iste har pei Se wey sing this pant wuld tae bight sin Pic Compoent ol Lan nstalinet srt] PainclRe aa! | Pa once des nsf eee Bak uote cn m rl sind or vem roe ofakin mPa Soy, aman » eto te ‘setae ota ne ‘rae pd sen td toa es sa ANE dk sie Shei i "a et ers tS coop ed . ft i si tn Sn Ella nae like ay ya ean dg eae “Wace Seen OS) ye scene of mark mens fe icp ee me en ene By mse ey lu, BHF abo dete ht ie anes eid ie in ret lee adem titel wh ug hat te shit pest coed Do ih fis esol oe ein Ra tt els etait uss?ma risen sepndng nonce Case Study 5: IRDA ‘compli odgad by Ms. Rai Des ‘The complaiat as fran athe tard in respect of fe meena espe of oyp insane ply oe lai Questar 8) What decision ROA havetses? 1) Dil DFC Stndat Lite Insrnce Co Li een wht tons WOU be og est ANNA unty, ERSITY, CHENNAL _SSoESES Er. BANKING F NE HNANCIL seavices MANAGEMENT “answer Al questions, ye be PART-A 02-29) or (any four unease Bak, (Gees 1 by Whats Neo strumen? We te Importance ears esl trans At I, ‘ns: Prdon Mode of Fino Distros Reet Pasko tes ee Lo ete eee a Ans: Rf ‘Ques 10 Whatset tahini ‘Que 15 2 Ebert he Egat im et = Ane Bae Sym Siouuh eke woNote: Answer questions PART, (Ques 1) What nepal instroment? needs nd iniicanc of cree nce of Credt Mentoring Kewons why New Geta on a PaymendTranter See ete eee an Pabte se ape eg ett Ca i ok hinges sntggs of Banking or Fetronie Banking page No 108 ecofE-Danhing of Becton Banking Sage Ae ferences between pt NecNnec ke tons yt Chrm jane? f 49), Differentiate between mergers and Yet _sereets gust Page No. 94 sification wei Or ub) Deserbe the various components used in OLS ‘model to analyse the performance of banks. cA Components of CAMEL cet ues 52) Write the advantages and disadvantages of fbetronie banking Advantages of E-Banking or Electronic Banking eer Unit-3, Page No. 109 pisvantages of E-Banking or Electronic Banking fefer Unit3, Page No. 110 ' or ues 15 b) What are the differences between plastic snoney and E-Money? Ans: Plastic Money Refer Unit-3, Page No. 110 EMoney Refer Unit-3, Page No. 117 PART-C (ax15=15) Ques 16 a) Elaborate the Provisions of the RBI Act, 1934 governing the Indian Banking System. Ans: Provisions of Reserve Bank of India Act, 1934 Refer Unit Page No. 28 or Qus 16 b) Explain the different types of & paymenvtransfer systems made available to retail cusiomers bythe public sector banks in India. Are New feneration banks able to offer better payment transfer ‘ervies than Public Sector Banks? Give reasons. ‘Ans: Types of E-Payment/Transfer Systems Refer Unit-3, Page No. 101 an Reasons why New Gener Beiter Paynonn) teceemeraion Banks able to oer Beiter ‘ansfer Services than Public Sector yn difference is that they focus on higher cons. a satisfaction and services at ae ® high prem ate able to fer beter payment wane aereag ER eit eee er aaard speedy transactions, seamless wansfe of foo time information system, and efficient tisk, paeea | epee cameras Sees The new bank developed the concep ot tig Seus[sasl vandals (emi enters incouas aise bau Suseeeee tos 3 4) Now RBI has loosened its strings by allowing all the private banks to handle government business, this will not only help these banks to improve their business, but more importantly, it will be of great help to the customers. Customers of these banks and the public at large will be able t do transactions with the nearest branch of any bank they are comfortable with and those who are able to offer better customer service, irrespective of the ‘ownership of the bank concerned. 5) The various new innovations and developments in the field of information technology strongly support the new generation banks and make them better than public sector banks. Some of the technologies and Innovations are: J""Tetephone Banking, ATM, Mile Banking - ss i) Opie Banking, Inemet, Email, Dtanet, RBI ev Nicnet, Net, te ti) Home Banking, Eleevoic Payment, Cash Dispensers iv) RTGS, NEFT, ECS, EFT A). Free avisry services, ree cheque Books vip Payment of wy bis mer based Transaction for a. Magnetic WO Pin Neer Card Credit Cads & Debit Cams otunee Machines at the Bank Counters te iy Trovel segues, Offebore Barking / Overseas Banking Servicesa2 A ‘Absolut Rsk erat Relative Rk 83 ‘Additional Finance, 184 ‘Aateon Cade 14 ‘Adresse, 123 ‘Advance Factoring, 191, “Alliity Crd, 114 ‘Aggressive Growth Fonds, 165 ‘Amex Car 111 Ase lloeaton Funds, 16 ‘AusetBosed Lending, $7 ‘Asse Management Copany (ANC, ‘Asset Libilty Management, 63 ‘Assets Quay, 4S ‘Asymmetric Capo Sytem, 123, ‘Astomated Tele Machine: 18 B Bock-Fip Takeover, 97 Balance Stet 38 Balanced Funds, 169 Bask Asics 6 Bask Guanes, 57,135 Bank investment 61 ‘Bank investment management, 6 Bank Liabiies 63 Bonds Issued by the Bank 65 Deposits rom Commer ‘Customers 63 Resa Checking and Savings Account, 65 Retail Fixed Deposits, 65 Bank Pastcistion Faro, 191 Banker 195 Banker's Bank 23 tanking. 12 Banking Regulation Act, 149,34 Bank issued Cards, 18 Banks, 12 Bl Discounting, 187 Bills Discourting, 187 Bills tense and Discounted, $7 9 Busines Ris, 85 bayer ace fotoing, 192 c cat Opin, 80 (Camel Mosel 2 pial Adeguaey, 8 (Capital Adequacy Noms, 48 (Cash Credit 57 {Cash Dispense, 119 (Cena Bane 13 Cenitcate of Deposits (CDs), 52 (Cetication Practice Statement, 123 (Coet-Ended Schemes, 16 MDA Tied Semester (Banking 08 Fiat Servs aye Index (Co-Brande Cad, 12 ‘Commercial Banks, 14 ‘Commer! Loni 64 ‘Comimeria pape 53 Commodity Fons, 170, ‘Commrniation Doves, 123 Comper Syste, 123 Conant Pring, 58 CConsuer Cre 15, [Consuer Crest Consamer Face, 3 Contingset Deere Sales Charge 165 (Co-operative Bank, 19 Corporate Counseling, 196. (CoutBenefit Lan Ping 80 Cou Ps Maryn Deposit rising, 53 ‘Cos Pis Pricing, 60 ‘County Risk 88 Credit Card 11 Greitit $1 (ret Specs Risk, £2, 89, Crete Tester 103 (reai.Card Receives, 6 (Gross Border Less, 4 (Gaeat Account Gustent Deport Account, 50 (Casta 162 Customer Profit Analysis 60 (Gye Cale, 123 (Cyto Security, 123 D Data 124 Deal Scaring, 185 Debentre roses 195 Debit Ca 111 Debit Transfer, 103 Debvinome Funds, 167 Default is, 82 Deferred Lod, 165 Demand Loans, 56 Deposits 13 Developmen Bank, 13 Dinner Cub Cag, 112 Diseet Lease, 144 Diverse Debt Funds, 16 Diverse Equity Pus, 16 Domestic Lea, lt Dosti Ase 89 E Early Stage Financing, 184 amine Quali. 45, leewons Baking, 108, ‘Leeonie Clearing Service (ECS), 101 hecvoni Debits "econ Form, 134 ‘teconie Funds Transfer, 103, "lectone Funds Transfer (€FD), 21 ectoneSienstre Ceca, 124 Money 117 Entry Las, 168 Payments, 100 Equipment Leasing Company (EL¢), 138 Equity Financing, 183 uity Funds 166 EuityTnome of Dividend Yield Feng, 166 iy Tadex Funds, 167 nat uc, 14 ven Risk 83 Exchange Bank, 13 Exchange Taded Funds, 169 ‘Exchange Traded Funds (ETF) 134 sit Lod 165 Expoa Fetring, 192 Expor-ingor Bank 13 F Focterng, 190 Fre Non Fund Bated Financial Sener, 14 Financial Lease, 143 Financial Serves. 31, Fined Deposit Account, ed Depts 18 Fined Rat and Feating Rate Los, 60 Focused Debt Funds, 168 Foreign exchangers, 78, 83 Foreign Btchange Ris, 83 renal Takeover, 97 Poel Cars, 118 Full Factoring, 192 Fond Based Leading, 56 Fund of Funds, 170 Fund of Fands (FOP), 170, Asset Based Fania Sevices, 134 Funding Gap, 2 G ‘tobat Card, 112 oid Cars, 14 Gross NPA, 88 Growth Fonds, 165 ‘Growth and-acome Funds, 168 H Hazard Mode 69 Asie Fan POF, 70 Mat ae ed rt ot igh Yel et Hie Pcie 50 is Prcan Aenea, 50 Hisoecl Average Cot Aprsch Hoste Tateoveg 97 AP Mowing Fiance Company (HEC). 138 Hybrid Funds 169 I Trot Lease, 14 Z = z va ge % caxsussfin a erase ver aibe vireo nrc Ls L Managem Marginal ‘Market P Market MarerC: Mat Merehat MisceltFett peguto RDA tony) Ae 989, e J esi Boreas ECB), 14 K foi ivtin CAMEL Rains 4 L soe Financing, 184 veing 89 ve cng 134, 181 ve arte List Reso, 23 (enero est 57 tots of Ce, 135 Stemged Less 14 are eoney Market Funds 169 iit To Fads, 165 Loan Company (LC) 138 tars 56 than Managemen. 4 {on Tertvestmens, 64 M Management Efficiency. 45 Marginal Cost Approach, 54 ‘Market Penetration Deposit Pricing, 53 ‘Market Risk, 82 ‘MasterCard Worldwide, 111 “Maturing Factoring, 191 Merchant Banking, 193 Miscellaneous Non-Banking Company (MINBO), 138) ‘Mobile ATM, 119 “Modern Activities, 135 Money at Cal, 15 “Mutual Fund FOFs, 170 “Mutual Funds, 161 N National Electronic Funds Transfer (NET), 21 ‘National Electronic Funds Transfer (EFT) System, 105 Negotiable Instrument Act, 1881, 30 Negotiable Instruments (Amendment and Miscellaneous Provisions) Act 7 ms) Act, 2002, Net NPA, 88 [Not Present Value of Hire-Purchase Pan, 156 7 Net Present Value of Lease Plan, 156 Nighis or Mutual Benefit Finance Company (MBFC), 139 ‘No-Load Funds, 166 Non Banking Financial Companies (NBFCS), 136, [Non Performing Assets (NPA), 87 ‘Non-Banking Non-Financial Company (NBNEC), 139 ‘Non-Fund Based Lending, $7 Non-Berforming Asset (NPA), 87 Non-Recourse Factoring, 191 ‘Non Scheduled Banks, 19 'Non-SLR Investments, 62 ‘Non-Tax-Exempt Funds, 166 Notified and Undisclosed factoring, 191 oO Offline Debit, 116 Online Debit, 116 Onsite ATM, 119 Open-Ended Schemes, 163, Operating or Service Lease, 142 Operational risk, 84 Overdraft, 57 Overdraft Facilities, 15 P Paper Based Payments, 9 Participating Debesture, 184 Payment System, 20 ‘Payments Vision 2025, 125 Photo Card, 112 Plastic Money, 110 Portfolio Manager, 195 Prepaid Debit Card, 16 Price Risk, 83 Project Counselling, 196 Project Finance, 57 Promotional Function, 25 pat option, 8 R Real Estate Funds, 170 Real Time Gross Setlement, 104 Real Time Grose Settlement (RTS), 2 Recourse Factoring, 91 Recurring Deposit Account, 51 ‘Recuring Deposit. 15 Registra, 198 Ratoni Ping 8 Relationship-Based Pricing, 1 Reserve Bank of India Act, 1934.22 ‘Recerve Bank of india Act, 2006, 28 esidvary Non-Banking Company (RNBC), 139 te . a Ret Monga o4 all Pessoal Laas 4 Reverse Takeover, 97" isk Avidane. 13, ska ring, 1 - Ss Saving Bonk, 13 Savings Bank Account, 15, Sebel Bank, ‘Second Round Finacin Sector Fons 109 Secured Loans, $5 ‘Securitization, 37,92 Seed Capital, 184 Selective factoring, 192 Seller-based factoring, 192 Single Investor Lease, 144 SLR Investments, 62 ‘Small Bank, 13 Smart Card, 112 Solvency Risk, 86 Sponsor, 162. Standard AssetsfEaming Asses, 89 Stan-Up Finance, 184 Stock Broking, 135 ‘Store Cards, 114 Substandard Assets, 89 Supervisory Functions, ‘Surplus Management, 63 Systemic Risk, 83 T ‘TaxExempt Funds, 166 ‘Telephone Cards, 114 ‘Term Loans. 15 ‘Traded Bonds, 65 ‘Traditional Activites. 134 “Transaction Exposure, 79 “Translation Exposure, 79 “riparite Lease, HE ‘Trustees, 162 U Underwvite, 16 ‘Unsecured Loans, 55 ‘Upscale Target Pricing v Value Fonds 167 ‘Venture Cais 183 Verity, 24 Volatility Risk, 83 w Worisite ATM. 9 Z score model, 68