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Banking And Financial Awareness
1)What is NPA?
NPA in banking parlance means non-performing assets.If a loan is unpaid according to the payment schedule fixed, such loans are classified as
NPA'S.
2)What is Spread?
spread means the difference between the average cost of funds and average returns to an investment.
3)Explain Non-interest Income?
Non-interest income is derived by selling third party products such as Insurance and Mutual Funds.
4)Laws that governing banks in India?
Banking Regulation Act 1949 and RBI Act 1935.
5)what are Scheduled Banks?
Scheduled banks are those banks that are included in the Second Schedule to the RBI Act 1935.To get included in the second schedule of RBI Act;(a)banks must have a paid-up capital of Rs.5lakh.(b)banks must be registered under the Companies Act 1956.(c)It must give guarantee that it's activities are not detrimental to the interst of the investors.
6)What are SEZ's?
A Special Economic Zone(SEZ) is a geographical region that has economic laws taht are more liberal than a country's typical economic laws.Examples of SEZ's are Free Trade Zones, Urban Enterprose Zones, Free Zones and Industial Estates and so on.The goal of an SEZ is to increase the foreign investment.
7)What is Capital Adequacy Ratio(CAR)?
It is a measure of the amount of bank's capital expressed as percentage of it's risk-weighted credit exposures.CAR=Capital/risk weighted assets.
8)CORE Banking?
Centralised On-line Real time Electronic Banking.
9)BPLR?
BPLR means Benchmark Prime Lending Rate.Loans above Rs.2lakhs are linked to this.
10)Reverse Mortgage?
This is a loan available to senior citizens in the U.K.
11)What is RTGS ?
RTGS means Real Time Gross Settlement.This is a fund transfer mechanism where the transfer of money takesplace from one bank to another on a real time and on a gross basis.This is the fastest possible money transfer system through the banking channel.Settlement in real time means payment transactioms are not subjected to any waiting period.Gross Settlement means the transactions are settled on one to one basis without bunching with any other transaction.Once payments are done through RTGS it is considered as Final and irrevocable.RTGS system is intended for large value transactions.The minimum amount tobe remitted through RTGS is One Lakh.There is no upper ceiling for RTGS transactions.
12)What is NEFT?
NEFT means National Electronic Fund Transfer System that operate on Deferred Net Settlement (DNS)basis which settles transactions in batches.IN DNS the settlemnt takes place in a particular point of time.All transactions are held up till that time.NEFT transactions take place six times a day during the week days and three times during saturday's.Any transactions initiated after a designated settlement time would have to wait till the next designated settlement time.Contrary to RTGS, NEFT system has no limit specification for the transacted amount.
13)What is FCNR?
FCNR means Foreign Currency Non-Resident and is a foreign currency denominated fixed deposit by indian banks.
14)Impact of Global Financial Crisis in Indian Economy?
Indian banks may not be affeacted as much as they are almost insulated.Economic fundamentals are more solid.Foreign Institutional Investors(FII'S) may quit Indian markets resulting in capital Market Crash.
15)What are p-Notes?
P-Notes are instruments issued by FII'S to other overseas investors for investing in Indian stock markets.
16)What is Money-Laundering?
It is the process where by the origin of illegally obatained money is concealed so that it apeears to come from a legitimate source.This is widely practised by white collar criminals as well as kleptocrats.
17) What is securitisation?
Securitisation is the process of conversion of existing assets into marketable securities or future cash flows.
18) What is MAT?
MAT is related to Income Tax.MAT means Minimum Alternative Tax and is required to be given by the Zero Tax companies registered under the Companies Act, 1956 in India.
