Important Topics for General Awareness for tomorrow's Exam

Dear Readers,
After analysing both the shifts of today's exam, we have seen repeations in the GA questions. Because of this, we feel that there are some very small topics in GA which just after reading can help you to do 4-5 more questions in GA apart from the current affairs section.

So for this, we have made small briefs on some of the topics which can help you all fo the tomorrow's exam.
Just go through this and revise this.
All the best.

Small Banks
Key features of the Small Finance Bank
1) The small finance bank shall primarily undertake basic banking activities of acceptance of deposits and lending to unserved and underserved sections including small business units, small and marginal farmers, micro and small industries and unorganised sector entities.
2) There will not be any restriction in the area of operations of small finance banks.
3) The minimum paid-up equity capital for small finance banks shall be Rs. 100 crore. The promoter's minimum initial contribution to the paid-up equity capital of such small finance bank shall at least be 40 per cent and gradually brought down to 26 per cent within 12 years from the date of commencement of business of the bank.
4) The small finance banks will be required to extend 75 per cent of its Adjusted Net Bank Credit (ANBC) to the sectors eligible for classification as priority sector lending (PSL) by the Reserve Bank.
5) At least 50 per cent of its loan portfolio should constitute loans and advances of upto Rs. 25 lakh.



 Payment Banks
Key features of Payments Banks
1. Acceptance of demand deposits. Payments bank will initially be restricted to holding a maximum balance of Rs. 100,000 per individual customer.
2. Issuance of ATM/debit cards. Payments banks, however, cannot issue credit cards.
3. Payments and remittance services through various channels.
4. BC of another bank, subject to the Reserve Bank guidelines on BCs.
5. Distribution of non-risk sharing simple financial products like mutual fund units and insurance products, etc.
6. The minimum paid-up equity capital for payments banks shall be Rs. 100 crore.
7. The payments bank should have a leverage ratio of not less than 3 per cent, i.e., its outside liabilities should not exceed 33.33 times its net worth (paid-up capital and reserves).
8. Promoter's contribution: The promoter's minimum initial contribution to the paid-up equity capital of such payments bank shall at least be 40 per cent for the first five years from the commencement of its business.

Kisan Vikas Patra – KVP
1) The Small Savings Directorate sells/issues KVP savings certificate across the country through the post offices and nationalized banks.
2) The savings scheme is open for all the citizens of India.
3) The KVP certificates are available from nationalized banks, associate banks, state banks and post offices across the country in denominations of Rs. 1,000, Rs. 5,000, Rs. 10,000 and Rs. 50,000.
4) Amount Invested doubles in 100 months (8 years & 4 months)
5) Facility of nomination is available.
6) Kisan Vikas Patra certificates can be encashed after a lock-in period of 30 months or 2 years and 6 months. Thereafter, investors can withdraw in any block of six months.
7) The re-launched KVP offers 8.70% interest and will double the principal during its maturity period of 100 months.
  
BASEL-3 NORMS
a) Stefan Ingves, Governor of Sveriges Riksbank (SWEDEN), is the Chairman of the Basel Committee.
b) Basel III or Basel 3 released in December, 2010 is the third in the series of Basel Accords.  These accords deal with risk management aspects for the banking sector. 
c) According to Basel Committee on Banking Supervision "Basel III is a comprehensive set of reform measures, developed by the Basel Committee on Banking Supervision, to strengthen the regulation, supervision and risk management of the banking sector".

Three Pillars of Basel 3
 Pillar 1: Minimum Regulatory Capital Requirements based on Risk Weighted Assets (RWAs):
Maintaining capital calculated through credit, market and operational risk areas (mainly that capital which can absorb risk.)
 Pillar 2:  Supervisory Review Process:
Regulating tools and frameworks for dealing with peripheral risks that bank face.
 Pillar 3: Market Discipline:  
Increasing the disclosures that banks must provide to increase the transparency of banks

BHARAT RATNA
a) The Bharat Ratna is the highest civilian award of the Republic of India.
b) Instituted in 1954, the award is conferred "in recognition of exceptional service/performance of the highest order
c) The award was originally limited to achievements in the arts, literature, science, and public services, but the government expanded the criteria to include "any field of human endeavour" in December 2011.
d) The first recipients of the Bharat Ratna were politician C. Rajagopalachari, philosopher Sarvepalli Radhakrishnan, and scientist C. V. Raman, who were honoured in 1954.
e) The former Prime Minister Lal Bahadur Shastri became the first individual to be honoured posthumously.
f) In 2014, cricketer Sachin Tendulkar, then aged 40, became the youngest recipient
g) The "Bharat Ratna" has been awarded to one naturalised citizen, Mother Teresa, and to two non-Indians, Pakistan national Khan Abdul Ghaffar Khan and former South African President Nelson Mandela.

MUDRA BANK:
Pradhan Mantri Mudra Bank Loan Yojana PMMY

• What is MUDRA Bank?
Micro Units Development and Refinance Agency (MUDRA) is a financial initiative by PM Narendra Modi, crated in order to facilitate the micro units and provide them sufficient funds in order to develop. Small businesses are often unable to avail loans from banks because of lack of collateral and insufficient funds to pay off the interest.

• What is the MUDRA Yojana?
This is a scheme to provide loans to small businesses and micro institutions. For now, it will just refinance these institutions. This scheme would intervene in providing finance to these micro institutions in three stages:
• Shishu:
Under the Shishu stage, MUDRA will provide a loan up to RS.50, 000 to small businesses.
• Kishor:
Next is the Kishor stage. Under this stage, MUDRA will provide loans of an amount ranging from RS.50, 000 up to Rs.5 lakh.
• Tarun:
Last stage of intervention is the Tarun stage. Under this stage, loans of amounts ranging from Rs.5 lakh to Rs.10 lakh will be provided.

• Who is eligible for loan under MUDRA Yojana?
Under the MUDRA Yojana, all small businesses and enterprises in need of finance are eligible for a loan.
Businesses of proprietary as well as of partnership nature are eligible. Apart from this, all small business and manufacturing units like food services, vegetables and fruit vendors, hair cutting saloon, beauty parlours, transportation services, repair shops, self help groups, hawkers, artisans and various other professionals and service providers working at lower level are eligible to avail loans of up to Rs.10 lakh.

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