************** Repo Rate: Repo rate is the rate at which our Commercial banks borrow rupees from RBI.

A reduction in the repo rate will help banks to get money at a cheaper rate. When the repo rate increases borrowing from RBI becomes more expensive. Or the rate at which the RBI lends money to commercial banks is called Repo rate. Current Repo Rate: 8% (As on 09-January-2013)

********************* Reverse Repo Rate: Rate at which the RBI borrows money from commercial banks. Banks are always happy to lend money to the RBI since their money are in safe hands with a good interest. Current Reverse Repo Rate: 7% (As on 09-January-2013)

**************** Bank Rate: The interest rate charges by a central bank to commercial banks for very short term loans. Current Bank Rate: 7% (As on 09-January-2013)

****************************** Cash Reserve Ratio (CRR): CRR is the amount of funds that the banks have to keep with the RBI. If the central bank decides to increase the CRR, the available amount with the banks comes down. The RBI uses the CRR to drain out excessive money from the system. Current Cash Reserve ratio (CRR): 4.25% (As on 09-January-2013)

********************************** SLR (Statutory Liquidity Ratio): SLR refers to the amount that the commercial banks require to maintain in the form gold or govt. approved securities before providing credit to the customers. Statutory Liquidity Ratio (SLR) is determined and maintained by the Reserve Bank of India (RBI) in order to control the expansion of bank credit. Current SLR: 23% (As on 09-January-2013)

**************** Base Rate: **************** The Base Rate is the minimum interest rate of a Bank below which it cannot lend, except in cases allowed by RBI. Current Base rate: 9% (As on 09-January-2013)

********************************* CTS- Cheque Truncation system ********************************* process of stopping the flow of the physical cheque issued by a drawer at some point with the presenting bank en-route to the drawee bank branch. In its place an electronic image of the cheque is transmitted to the drawee branch by the clearing house, along with relevant information like data on the MICR band, date of presentation, presenting bank, etc. Its useful because it results in better service to customers, reduces the scope for clearing-related frauds or loss of instruments in transit, lowers the cost of collection of cheques, and removes reconciliation-related and logistics-related problems. OR Cheque Truncation : Cheque truncation, truncates or stops the flow of cheques through the banking system. Generally truncation takes place at the collecting branch, which sends the electronic image of the cheques to the paying branch through the clearing house and stores the paper cheques with it.

***************** Currency Rate ***************** Currency Rate is the exchange rate of Other Currency with the home currency. In the instance case the home currency is Indian Rupee. US Dollar, GB Pounds, Euro, and Japanese Yen are the few examples of other Foreign Currencies. The rate at which we can purchase or sale these foreign currencies are the currency rate. And it is denominated in Indian Rupees. e.g. 1 USD = INR 45.50. Here the currency rate is 45.50. The Foreign Exchange Dealers Association of India better known as FEDAI decides the currency rate of the country.

******** CIBIL ******** CIBIL is the credit information bureau of India ltd. It keeps the credit information of the customers of the bank primarily with the PAN details. Whenever you make a loan application or ask for credit facility your bank sends the information about you to cibil and asks for your credit history and related info. Every bank has to mandatorily provide all the credit information and updates to cibil regularly as per the rbi guidelines. ****** Lein ****** Lien :- A lien is the right to retain property in its possession till its bankers dues are cleared by the borrower. Lien gives banker only a right to retain the possession of the goods and not the power to sell.

************************************** Electronic Clearing Service (ECS) ************************************** ECS is an electronic mode of payment / receipt for transactions that are repetitive and periodic in nature. ECS is used by institutions for making bulk payment of amounts towards distribution of dividend, interest, salary, pension, etc., or for bulk collection of amounts towards telephone / electricity / water dues, cess / tax collections, loan installment repayments, periodic investments in mutual funds, insurance premium etc. Essentially, ECS facilitates bulk transfer of monies from one bank account to many bank accounts or vice versa. *********************************** Marginal Standing Facility (MSF) *********************************** What is the marginal standing facility? The Reserve Bank of India in its monetary policy for 2011-12, introduced the marginal standing facility (MSF), under which banks could borrow funds overnight from RBI against pledging government securities. Banks can borrow funds through MSF when there is a considerable shortfall of liquidity. This measure has been introduced by RBI to regulate short-term asset liability mismatches more effectively. Under the MSF scheme the banks can borrow overnight upto 1 per cent of their net demand and time liabilities (NDTL) i.e. 1 per cent of the aggregate deposits and other liabilities of the banks.

****************** Atm/debit card ****************** 1. any time money, 3. can be used with any banks atm, 2. can be used anywhere and anytime 4. can be used in online and pos shopping

5. you dont have to go through the rush and hustle of branch 6. can be used for fund transfer, 7. can be used to pay bills

*************** Balance sheet *************** is a financial statement prepared with assets and liabilities. it shows the financial position of a business.

************************************************************ Micro credit is given to which type of people or class? ************************************************************ Its given to small scale industries like farmers then weavers and handicrafts to promote small scale industries mainly the traditional Indian industries. OR Particularly to those who are not able to avail banking services due to high transaction cost,small enterprises, individuals with small business, special emphasis on women etc

******************************************************************* 3 major Credit rating agencies in India 1) ICRA 2) CARE 3) CRISIL ******************************************************************* They mainly grade different companies as well as there differnt debt instruments, on the basis of their financial performances. This grading/ratings can be used by investors, brokers, investment bankers etc.

***************** Forex reserves ***************** Is the foreign exchange that is available with our country. it is calculated in terms of us$. The more forex we have, better our position is there in international market. We earn forex by export, nri, fdi fii, tourists and banks earn profit from loans, as they get details on lower rate of interest and loan(when re-paid) generates higher interest. Also bank earns from mf, insurance, lic etc. **************** Revenue deficit **************** is the excess of current revenue expenditure over current revenue receipt. indicating that govt cannot meet its current expenditure from its current revenue **************** Budget deficit **************** is overall deficit, excess of total expenditure over total revenue,,,it includes both capital and revenue items in receipt and expenditure , deficit financing is done to fill this gap **************** Fiscal deficit: is budget deficit plus other borrowings and liabilities. **************** Primary deficit : means fiscal deficit minus the interest payments. ******************************************* Difference between banking and finance? ******************************************* Finance is a broader term and includes many aspects where money is concerned...it may include accounting, insurances, policies, Investment etc. Whereas banking is everything that happens in a bank only. You can say banking is one part of finance ********* Mandate ********* is the authorization given by a person to another person to use services being availed by him such as internet banking mobile banking etc. in case of Saving accounts etc. nd in such cases name nd signs of both the persons r req...P.S. dis zz more of a practicle example...

****************************************** Difference between share and debenture ****************************************** A debenture is an unsecured loan you offer to a company. The company does not give any collateral for the debenture, but pays a higher rate of interest to its creditors. In case of bankruptcy or financial difficulties, the debenture holders are paid later than bondholders. Debentures are different from stocks and bonds, although all three are types of investment. Below are descriptions of the different types of investment options for small investors and entrepreneurs. Debentures and Shares When you buy shares, you become one of the owners of the company. Your fortunes rise and fall with that of the company. If the stocks of the company soar in value, your investment pays off high dividends, but if the shares decrease in value, the investments are low paying. The higher the risk you take, the higher the rewards you get. Debentures are more secure than shares, in the sense that you are guaranteed payments with high interest rates. The company pays you interest on the money you lend it until the maturity period, after which, whatever you invested in the company is paid back to you. The interest is the profit you make from debentures. While shares are for those who like to take risks for the sake of high returns, debentures are for people who want a safe and secure income.

*********************** "Green Revolution' *********************** that happened in India in the late 1960's. It was the increased production of agricultural products especially wheat, rice, cereals, pulses etc. Dr M.S Swaminathan, the genius, was the man behind this silent revolution. 1. White Revolution: Milk and Dairy products 2. Blue Revolution: Fishing and marine products 3. Yellow revolution: Oil seeds/edible oil especially mustard, sunflower etc. 4. Pink Revolution: Prawns, onion 6. Brown Revolution: Cocoa/Leather 8. Grey Revolution: Fertilizer 10. Round Revolution: Potato 12. Golden fiber: Jute 14. Silver: Eggs (Poultry) 5. Rainbow Revolution: Fruits/breeding of ornamental fish 7. Black Revolution: Petroleum 9. Red Revolution: Meat, tomato 11. Golden Revolution: Honey, Horticulture 13. Silver fiber: Cotton

************************************ T Bills & Treasury Bills ************************************ -bills are short-term securities that mature in one year or less from their issue date. They are issued with three-month, six-month and one-year maturities. T-bills are purchased for a price that is less than their par (face) value; when they mature, the government pays the holder the full par value. Effectively, your interest is the difference between the purchase price of the security and what you get at maturity. For example, if you bought a 90-day T-bill at $9,800 and held it until maturity, you would earn $200 on your investment. This differs from coupon bonds, which pay interest semi-annually. Treasury bills (as well as notes and bonds) are issued through a competitive bidding process at auctions. If you want to buy a T-bill, you submit a bid that is prepared either n-competitivelyor competitively. In non-competitive bidding, you'll receive the full amount of the security you want at the return determined at the auction. With competitive bidding, you have to specify the return that you would like to receive. If the return you specify is too high, you might not receive any securities, or just a portion of what you bid for. The biggest reason that T-Bills are so popular is that they are one of the few money market instruments that are affordable to the individual investors. T-bills are usually issued in denominations of $1,000, $5,000, $10,000, $25,000, $50,000, $100,000 and $1 million. Other positives are that T-bills (and all Treasuries) are considered to be the safest investments in the world because the U.S. government backs them. In fact, they are considered risk-free. ***************************************************************** INC. IN BANK RATE = USED TO DECREASE INFLATION...DEC. MONEY SUPPLY.. DECREASE IN BANK RATE = USED TO INCREASE MONEY SUPPLY... ***************************************************************** ******************************* Increses in crr and slr .....Increase Interest Rate Money becomes costlier-Lower demand of money-Lower demand of goods and services- Lower prices of goods and services- Lower inflation ******************************* Decrease in crr and slr This cycle goes: ......Decrease Interest Rate Higher demand of money-Higher demand of goods and servicesHigher prices of goods and services- Higher inflation

************************************** Finance ministry has 5 secretaries ************************************** Finance secretary - rs gujral, Economic secretary- arvind mayaram Disinvestment secretary - ravi mathur Revenue secretary - sumit bose Financial services secretary - rajiv takru

****************************************************************************** Services are being offered these days by banks other than deposit and loan ****************************************************************************** 1.) Selling Gold Coins 3.) Mutual Fund 5.) Online banking facilities 2.) Forex Facilities 4.) Insurance facilities 6.) Payment of Bills

FDI waale direct PSUs me invest karte hain n govt institution me invest karte hain... BUT jo FII hote hain woh indian share market n securities main invest karte hain... n both FDI N FII .are invested in foreign countries... Reserve Bank of India announces Monetary Policy every year in the Month of April. This is followed by three quarterly Reviews in July, October and January. But, RBI at its discretion can announce the measures at any point of time. In the recent times, RBI is reviewing it's policy in between quarterly reviews also. The MSF(Marginal Standing Facility) rate is pegged 100 basis points or a percentage point above the repo rate. In the annual policy statement, RBI says: "The stance of monetary policy is, among other things, to manage liquidity to ensure that it remains broadly in balance, with neither a large surplus diluting monetary transmission nor a large deficit choking off fund flows." The MSF would be the last resort for banks once they exhaust all borrowing options including the liquidity adjustment facility by pledging through government securities, which has lower rate of interest in comparison with the MSF. The MSF would be a penal rate for banks and the banks can borrow funds by pledging government securities within the limits of the statutory liquidity ratio. The scheme has been introduced by RBI with the main aim of reducing volatility in the overnight lending rates in the inter-bank market and to enable smooth monetary transmission in the financial system."

 The Base Rate system has replaced the Benchmark Prime Lending Rate (BPLR) system with effect from July 1, 2010.

1) Why doesnt RBI publish 1rupee note, why GOI publishes it? 2) While opening a new bank account y does one must deposit minimum cash, y nt a cheque payable on his account? 3) Why interest rate is high for senior citizens? 4) 5 benefits of ATM/debit card that are printed on the letter which comes with ATM card? 5) What is PLEDGE? 6) Why are co-operative banks non-scheduled?

7) What is the difference between public limited company and private limited company? Why some governors/deputy governors of RBI are appointed for 5/3 years if the tenure is 4 years? 8) Why monetary policy is made twice a year if budget is made once a year? y cant monetary policy made once a year? 9) Whats the full form of CORE in CORE BANKING SOLUTION-CBS? Answer 1) The One Rupee Note signifies one unit measure of currency note consisting of 100 paise which can be determined and decided by the Government of India ONLY. The RBI prints currency notes using this unit measure. for eg. if the RBI wants to print a Rs.5/- note, it has to accept the determined value of Rs.5/- as Re.1 X 5. Answer 2) I think it is for avoiding the closure of A/c if the cheque is dishonored, and also for the prevention fraud so that u may not en-cash the cheque of some other person by opening a fresh A/c fraudulently in the name of the payee mentioned on cheque... Answer 5) Pledge: Pledge indicates a loan amount that we may lend you to buy a home. The Pledge, which is valid for two months from the date of issue, is available subject to the prevailing lending and product criteria. If your Pledge expires before you have made a decision on the property you want to buy, you will have to apply for a new one. We do not charge a fee for issuing a Pledge. Answer 9) Centralized online real-time environment (CORE) banking