Banking Awareness

1.    Nachiket Mor panel to study financial services for small businesses
i. The Reserve Bank of India has set up a committee headed by Nachiket Mor on comprehensive financial services for small businesses and low-income households.
ii. The committee has been asked to come out with a set of design principles that will guide the development of institutional frameworks,
iii. The committee has also been asked to develop a comprehensive monitoring framework to track progress of the financial inclusion and deepening efforts on a nationwide basis.
iv. It will review existing strategies and develop new ones that address specific barriers to progress and that encourage participants to work swiftly towards achieving full inclusion and financial deepening, consistent with the design principles.

2.    Mayaram submits report on NSEL
i. high-level panel, headed by Economic Affairs Secretary Arvind Mayaram, submitted its report to Finance Minister P. Chidambaram  on the alleged irregularities at the National Spot Exchange Ltd (NSEL).
ii. Panel was set up in August 2013 to look into the 5600 crore Rupees payment crisis at the Financial Technologies-promoted NSEL. Secretaries from the Union Corporate Affairs and the Union Consumer Affairs Ministries, the Revenue Department, and head of Enforcement Directorate, are part of the committee.
iii. The report was finalised based on the reports of two working group from Enforcement Directorate and Reserve Bank.
iv. NSEL is grappling with a payment crisis for settling dues worth 5600-crore Rupees and had to suspend trading activities on 31 July 2013 following a government directive.

About National Spot Exchange Limited (NSEL)
i.  National Spot Exchange Limited (NSEL) is the national level, institutionalized, electronic, transparent spot trading platform for commodities.
ii. It is a structured market place, set-up to transform the commodity market by way of reducing the cost of intermediation and thereby improving marketing efficiency. Its state-of-the-art technology facilitates risk free and hassle free purchase and sale of various commodities.
iii. NSEL provides customized solution to farmers, traders, processors, exporters, importers, arbitrageurs, investors and other stakeholders pertaining to commodity procurement, storage, marketing, warehouse receipt financing, etc.
iv. NSEL commenced Live trading on 15 October 2008. At present, NSEL is operational in 16 States in India, providing delivery-based spot trading in 52 commodities.

3.    First-ever India International Bullion Summit to be held in Mumbai
i. The Bombay Bullion Association, the apex body of all bullion and jewellery associations in India, said it would host the first-ever India International Bullion Summit, IIBS in Mumbai on October 5th.
ii. BBA President Mohit Kamboj said in a release that IIBS is likely to see participation of more than 2,000 delegates from India and abroad.
iii. The IIBS would serve as a platform for industry experts, suppliers and buyers to converge and address concerns of the industry.

4.    ‘Own Your NPA’ campaign launched by IDBI
i. In a bid to speedily recover Non-Performing Assets (NPA), the IDBI Bank has launched a campaign named ‘Own Your NPA’.
ii. It is a NPA recovery drive launched by the IDBI Bank through which it has tasked its managers — at the zonal, regional and branch levels — to focus their on making recoveries from the top 20 bad loan accounts in their jurisdiction.
Non-Performing Assets (NPA)
i. In simple words, the assets of the Banks which don’t perform (means don’t bring any return) are called Non Performing Assets. In more general sense they are “bad Loans”.
ii. Any asset, including a leased asset, becomes non performing when it ceases to generate income for the bank.

However, there is a prescribed definition by the RBI which defines the NPAs as:
i. Terms Loans on which interest and / or installment of principal remain overdue for a particular quarter for a period of more than 90 days from the end of that particular quarter.
ii. The Bills those remain overdue for a period of More than 90 Days from the end of a quarter.
iii. Any amount to be received remains overdue for a period of more than 90 days.
iv. The Cash Credit account remains out of order for a period of more than 90 days. Out of order means over the sanctioned limit.

5.    Investment through P-Notes hits 3-month high of $26 billion
i. As per share market regulator SEBI, investments into Indian shares through participatory notes (P-Notes), hit a three-month high of Rs 1.65 lakh crore (about $26 billion) in August 2013.

Participatory Notes or P-notes are derivative instruments, used by Foreign Institutional Investors (FIIs) who are NOT registered with SEBI.
i. The major characteristics of P-notes are:
ii. They are derivative instruments
iii. They are used by Foreign Institutional Investors (FIIs) who are NOT registered with SEBI.
iv. They are used on Indian shares, but at a location outside of India.

Note: This means that the FIIs who are not registered with SEBI but wish to take exposure in the Indian securities markets can use P-notes.
ii. P-Notes, mostly used by overseas HNIs (High Networth Individuals), hedge funds and other foreign institutions, allow them to invest in Indian markets through registered Foreign Institutional Investors (FIIs), while saving on time and costs associated with direct registrations.
iii. Brokers buy or sell securities on behalf of their clients on their proprietary account and issue such notes in favor of such foreign investors.

6.    Moody’s cuts 2013-14 GDP growth forecast to 4.5%
i. Moody’s has lowered its outlook for India's GDP growth to 4.5 per cent for 2013-14 from 5.5 per cent.
ii. This reflects the recent depreciation of the rupee, which will exacerbate inflationary pressures, keep domestic interest rates relatively high, and hinder a recovery in domestic demand growth

Moody’s lowers SBI’s debt rating
i. Global rating firm, Moody’s Investors Service, has downgraded State Bank of India’s senior unsecured debt and local currency deposit ratings to Baa3 or lowest investment grade rating from Baa2 and altered the outlook on SBI’s financial strength rating to negative from stable as the economic slowdown impacts bank’s credit quality.

Why did Moody’s downgrade SBI’s rating?
i. As per rating agency, the combination of mounting pressure on credit fundamentals and the ongoing dependence on the fiscally constrained Indian government to maintain Capital Adequacy Ratio (CAR) are key players behind the rating downgrade at a level no higher than the sovereign.

7.    Fitch slashed India’s growth projection
i. Global rating agency Fitch has scaled down its projections on India’s growth to 4.8% for the current fiscal from the earlier estimate of 5.7% made in June, 2013.
The following are the key reasons behind the cut in growth projections
i. Weak Indian currency against dollar
ii. Expanding Current Account Deficit (CAD) on account of rising crude prices and falling rupee
iii. Weak demand

8.    White-label ATM Indicash ATMs opened in Mysore
i. Tata Communications Payment Solutions Ltd (TCPSL), a wholly owned subsidiary of Tata Communications Ltd, today inaugurated Indicash ATMs in Mysore.
ii. The company simultaneously launched more than five ATMs across Mysore.
iii. TCPSL is planning to deploy a minimum of 1,000 Indicash ATMs in Karnataka, a region which plays a vital role in the company’s rollout plans of 15,000 Indicash ATMs across India over the next three years.

Note: The company’s first white-label ATM was launched at Chandrapada village in Thane district on June 27. This is in keeping with the Reserve Bank of India’s vision to accelerate growth and improve ATM penetration across the country. 

9.    What is Financial Stability Board (FSB)?
i. FSB is an international body which was established after the 2009 G-20 London summit in April 2009 as a successor to the Financial Stability Forum.
ii. FSB work is to coordinate at the international level the work of national financial authorities and international standard-setting bodies and to develop and promote the implementation of effective regulatory, supervisory and other financial sector policies.
iii. The Board includes all G-20 major economies, FSF members, and the European Commission. It is headquartered in Basel, Switzerland.

Note: The Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI) and the Ministry of Finance are the members of FSB from India.

10.  China launches its first direct bank
i. China launched its first direct bank, a new mode of providing online banking services without any entity outlets.
ii. The direct bank has been launched by the Bank of Beijing in co-operation with the Netherlands-based ING Group.

Note: i.direct bank is a bank without any branch network that offers its services remotely via online banking and telephone banking and may also provide access via ATMs (often through interbank network alliances), mail and mobile.
ii. By eliminating the costs associated with bank branches, direct banks can make substantial savings which they may pass on to clients via higher interest rates or lower service charges.

30 comments:

Anonymous said...

pls tell rrb clerk gk questions in 2day exam

Anonymous said...

super

Bharath MD said...
This comment has been removed by the author.
Anonymous said...

MD .. madarchood ka dibba

Anonymous said...

how was the tdy rrb exm ?????

Anonymous said...

plz tell the no.of questiosn in each section in ibps po 3rd?

Anonymous said...

qt-40 (1.25)
reasoning - 40(1.25)
computer- 40(.50)
English- 40 (1)
gk -40(1)

Anonymous said...

Hw was d xam tdy...?

Anonymous said...

Hw was d xam tdy...?

Anonymous said...

Que gk kai share karo plzzzzz....clerk rrb

Anonymous said...

hello hello hello..can anyone pls tell me is there any year bond or something in IBPS PO??

Anonymous said...

Hello Hello Awaaz nahin aa rahi hai, dobara dial karo.

Anonymous said...

lolzzz...batao naa yar..!!

Dhananjay Kushwaha said...

Participating Banks have their individual Bond Amounts. Like UBI Rs 50K Bond , PNB on same amount. Some banks have higher bond amount and some have less bond amount. Once you clear the IBPS Written and Interview, you will automatically come to know about this. Because your joining letter will be having all these details.


Good Luck.

Ravindra kumar said...

Plz tell me banking g.k. for po 3

Anonymous said...

hello admin,,please share the gk questions asked in RRB clerk on 28th

Anonymous said...

yes, there is but is varies banks to bank which will be alloted to you after passing the exam.

Anonymous said...

hello how was the rrb clerk exam

Clay Wilkerson said...

Thanks for sharing your wisdom with all of us. Legal Books.

prashantsahu said...

admin please post ga capsule for ibps po hurry up.....

Anonymous said...

hello mam/sir, will u please provide power capsule for COMPUTER also???????????????????????????
please post capsule for ibps po hurry up.....

Anonymous said...

Hello admin...plz tell the difference btwn white nd brown atm.

Anonymous said...

plz tell the no.of questiosn in each section in ibps clerk?

Anonymous said...

whats d remainder of
1) (1421*1423*1423) / 12 .
2)26^(279)/27
3)26^(387)-1/27
(in Q2n3 279 n 387 r d pwr of 26)

plz tel m d short cut 4 remaindr in such types of

Anonymous said...

please upload banking awareness & economy capsule for January-September months

Veeraboina Varalakshmi said...

please provide ibps clerks-2012 papers.it will use full for us

dheeraj said...

please upload gk power capsule regarding banking awarnees for clerk

Chweet Chikoo said...

pls upload GK POWER CAPSULE. we are waiting for dat today n0v 20

Anurag Mishra said...

is all these banking information include in daily gk update .........kindly reply adm...

Anonymous said...

Plz admin.tell me.hws study for mppsc

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