10 Oct 2016

Important Banking and Financial Awareness Key Points for Upcoming IBPS PO/Clerk/RRB Exams 2016

Important Banking and Financial Awareness Key Points for Upcoming IBPS PO/Clerk/RRB Exams 2016 Set-3:
Dear Readers, Many of our website followers were requesting us to provide Banking/Financial Awareness Study Materials which was most important topics for upcoming IBPS PO/Clerk/RRB Exams 2016, and we have planned to provide Important Banking and Financial Awareness Key Points on daily basis, kindly make use of it.

1). In Banking Business, When the borrowers avail a term loan, initially they are given are payment holiday and this is referred as Moratorium.

2). Risk Management is one of the reasons Basel II Norms are to be followed by Commercial Banks.

3). Amount of Interest accrued / payable is more than Rs. 5000 P.A.Income Tax required to be deducted by the bank at source on interest accrued and paid by them on the fixed deposit.

4). The Targets set under Priority Sector Lending for Domestic Commercial Banks /Foreign banks with 20 and above branches is 40% of Adjusted Net Bank Credit (ANBC) or credit equivalent amount of off Balance sheet exposure whichever is higher. For foreign Banks with less than 20 branches it is 32% of ANBC or credit equivalent amount of off Balance sheet exposure whichever is higher.

5). The Financial Action Task Force (FATF) is an independent inter-governmental body that develops and promotes policies to protect the global financial system against money laundering terrorist financing of proliferation of weapons of mass destruction. The FATF recommendations are recognised as the global anti money laundering and counter terrorist financing standard.

6). National Payments Corporation of India (NPCI) launched Immediate Payment Service(IMPS)merchant payments in Sep 2012. It isa value added service which enables mobile banking customers to make payments to merchants / enterprises using their mobile phones.

7). Dishonour of Cheque is dealt under Negotiable Instruments act Section -138 deals with dishonour of cheque for insufficiency of fund in the account. It provides that a person shall be punishable for two years imprisonment or with fine, if the cheque issued by drawer returned by the bank unpaid.

8). National Electronic Funds Transfer (NEFT) is a more secure system was introduced for facilitating one to one funds transfer requirements of Individual / Corporate available across a longer time window. The NEFT system provides for batch settlement at hourly intervals, thus enabling near real time transfer of funds.

9). Truncationis the process of stopping the flow of the physical cheque issued by adrawer at some point with the presenting bank en-route to the drawee bank branch. Inits place an electronic image of cheque is transmitted to the drawee branch by the clearing house along with the relevant information.

10). Usually the Equated Monthly Instalments (EMI’s),used to repay a loan or an advance,comprises of Principal and Interest.

11). Every Bank is required to maintain at the close of business every day, a minimum proportion of their Net Demand and Time Liabilities (NDTL) called the Statutory Liquidity Ratio (SLR).The SLR should be maintained in the form of Cash, Gold, and Government approved Securities (Bonds).

12). Dear Money– A Situation in which money or loans become very difficult to obtain in a country.

13). General Anti Avoidance Rules (GAAR)
a.    It will apply to entities availing Tax benefit of at least ₹ 3 Crore
b.    It will apply to FII‘s that have claimed  benefits under any Double Tax Avoidance Agreement (DTAA)
c.    Investments made by a non-resident byway of offshore derivative instruments or P-Notes through FII’s will not be covered by GAAR.

14). Current Account Deficit (CAD) - The net imports of Goods, Services and transfers is more than the country’s total exports of goods, services and transfers.

15). The Relationship between a Banker and Customer is primarily that of a Debtor and Creditor.

16). Foreign Currency Non –Resident (FCNR)accounts can be opened and maintained as Recurring Deposits. In FCNR Accounts the payment of interest is effected in same currency in which deposit stands.

17). The 7th Schedule of the Indian Constitution deals with Banking.

18). The Currency Notes Deposited in the Currency Chests is the property of RBI.

19). Fiscal Stimulus is described as it is an intense affirmative action of the government to boost economic activity in the country.Fiscal stimulus basically means government measures, involving increased public spending and lower taxation, aimed at giving a positive jolt of economic activity.

20). Devaluing the Domestic Currency, adopting suitable policies which attract greater FDI and more funds from FII’s can help in reducing the Current Account Deficit (CAD).


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