#1 Incredible Banking

Dear Readers,
wareness regarding increasing needs of Banking Industry, their peculiar entities and
explicit enlightenment to attain goals of development have always intrigued a person as a
In the absence of requisite erudition and expertise, evidences reveal that a banker founders to
elevate in the industry and is ceased to enhance at his competency.
As a result of this non-profciency, when fckle opportunity does fnally knock on the door, one is tapped and has no
other choice except to fzzle.
So, it is with an immense ecstasy that I am presenting to you the profuse guide in the form of a monthly-magazine
Te magazine comprises useful materials & freights relevant to the day-to-day happenings and phenomena of
banking industry.
I have taken painstaking eforts to present the magazine in an elaborative yet simpler manner keeping in view the
requirements of our esteemed readers.
I am sure that if you read it intelligently and wisely it will go a long way in equipping you with knowledge to face the
gruelling battle and bring you sure success at your workplace. I always try to understand the demands & requirements
of our readers,as an instance of this, I would love to know your feedback, suggestions & changes in the pattern and
contents ; beacuse “sharing is caring”
Ultimately, I would conclude with my promise that “INCREDIBLE BANKING” will nourish you with the fruitful
knowledge & the best guidance. It is upto you to make the best use of it for an EMPHATIC-SUCCESS.
With best wishes for your brilliant triumph.
Sincerely yours,
Rahul Rituraj
Asst Manager
Central Bank of India
Editor’s Essence
• NPA Recovery Strategies
• Banking Breaking News
• Banking Buzz
• Banker’s Brief on Banking Buzz
• Brain Boggling Banking Quiz
An Initiative by Rahul Rituraj
Nirmal Publication
April 2014
Issue : 1st
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#2 Incredible Banking
Recovery Measures:
A NPA account can be recovered after taking these
measures effectively :
# Non Legal Measures :
• Send notices to the defaulters periodically
• Visit the borrower personally and discuss reasons for
the default
• Try to understand the problem and if any relief measures
can be offered it can be done.
• Special recovery camps can be arranged for focused
• Assess the realizable value of securities
• Take steps to encash the security
# Legal Measures :
• Invoke provision of Securitization & Reconstruction of
Financial Assets And Enforcement Of Security Interest
Act 2002 (SARFAESI) after observing formalities.
• File suit in the court of law in case the accounts are not
covered under SARFAESI
• Even in the cases where recovery actions are
taken,negotiations for a compromise seetlement to be
• Efforts are to be continous and taking borrower into
confidence will yield results.
Now lets read what are those negligences
• It is the prime duty of a banker to inform the borrower at the time
of sanction of a loan the repayment obligation in clear terms
• Many times a “communication gap” in this respect leads to default
• In some cases even recovery of a small amount known as
“Critical Amount” will help us to avoid an irregular account into
slipping to NPA category.Therefore special effort and care to be
taken by Banker to recover this critical amount.
• Repeated visit to the borrower’s place and having discussion
with him/her will give us an idea about current position of the
economic activity and and income generation etc
• Timely follow up with the borrower at a time when he gets income
is mist.For example – a farmer can be approached for recovery
after harvest of crops.
• Recovery efforts are to be “On going Basis” and regular .Accounts
with high overdues are to be targeted to effect better quantum of
So this is all about how we have to set a strategy in
accomplishing our goal
Start By Today Itself And Work Effectively As Well As
Today NPA (Non Performing Asset) has become a burning
object across banking industry.
So, we need to set a solid strategy to recover the same.
The role of banker doesn’t end up with sanction and
disbursement of loans. Actually the banker has to play a
vital role in monitoring and recovery of the dues from the
borrowers. The following pre-cautionary steps shall help
a banker to ensure the accounts remain as “Performing
• Proper identification of borrower
• Due diligence on borrower and the securities offered
• Proper assessment of credit-requirements
• Timely decision
• Ensuring compliance of lending norms
• Ensuring creation of assets and running of the unit
• Continuous support and guidance to the client
• Educating the borrower about the nature of credit
extended and repayment obligations to bank in clear
Standard assets form the major part of the credit portfolio.
Regular monitoring and follow up shall maintain the health
of assets. Proper vigil to be maintained at all times to see
that recoveries in standard accounts are forth coming,
which shall in turn ensure income recognition and adding to
the profit of the bank.
Recovery in NPA Accounts :
An account may slip into NPA category on account of
following reasons :
From Borrower Side :
• Improper planning
• Choosing of business without good prospects
• Lack entrepreneurial skills
• Lack of business knowledge
• Diversion of funds
• Wilful defaults
From Bank Side :
• Mistake in selection of borrower
• Deficiency in assessment of credit
• Lack of due diligence
• Improper financing
• Delayed financing
• Non ensuring of creation of assets
• Lack of continued support to the unit
• Failure to monitor the account
#3 Incredible Banking
1st April, 2014
• Raghuram Rajan hold rates in RBI’s first bi
monthly review.
• Yes Bank raises $500m in foreign currency
loans, deposits
How ?
◊ It’s due to regulatory relaxations introduced
during the fiscal.
• Rajan warns PSU banks against year-end
Why ?
◊ Adjustments by banks affect various market
• Monitoring of foreign Investment under the PIS
in indian companies - Incorporation in caution
List - FIIs/NRI/PIO/FDI/ADR/GDRs : The South
Indian Bank Ltd
Why ?
◊ Foreign share holding through Foreign
Institutional Investors (FIIs)/Non-Resident
Indians (NRIs)/Persons of Indian Origin
(PIOs)/Foreign Direct Investment (FDI)/
American Depository Receipt (ADR)/Global
Depository Receipts (GDRs) in The South
Indian Bank Ltd.
• RBI allows foreign investors to hedge currency
Why ?
◊ To improve risk mitigating environment in the
• Banks must not fine non-maintenance of
minimum balance
Why ?
◊ Consumer protection is an integral aspect of
financial inclusion. Bank should limit service
but not impose any charge
• New banks post EC nod; on-tap permits, special
banks soon
What ?
◊ The Reserve Bank of India (RBI) will
announce an in-principle approval for a host
of new banks to be set up after securing a
nod from the Election Commission of India,
• Monetary Policy: RBI keeps policy rates, CRR
Why ?
◊ If inflation continues along the intended glide
path, further policy tightening in the near
term may not be required.
• Indusind Bank appoints T. Anantha Narayanan
as additional director
2nd April 2014
• Bandhan, 1st microfinance inst to get banking
◊ Bandhan Financial Services, the first
microfinance institution in the country to win
a bank licence, is also one of the youngest
entities to be allowed to enter the banking
• Bitcoin’s swing hurt viability as currency
Why ?
◊ Govt across the globe are finding it difficult
to regulate virtual currency such as bitcoin
which doesn’t have a central issuer
• Shri Gurdial Singh Sandhu nominated on RBI
Central Board
◊ The Central Government has nominated
Shri Gurdial Singh Sandhu, Secretary,
Department of Financial Services, Ministry
of Finance, New Delhi as a director on the
Central Board of Directors of the Reserve
Bank of India.
• RBI penalises Vyavasayik Evam Audyogik
Sahakari Bank Ltd., Morena, Madhya Pradesh
Why ?
◊ for violation of directives/instructions/
guidelines of the Reserve Bank on operational
instructions on loan against WHRs and
credit exposure ceiling, director related loan,
donations, Know Your Customers (KYC)/
Anti Money Laundering (AML) and non
compliance to RBI inspection report.
#4 Incredible Banking
• IFCI appoints CA. K. S. Sreenivasan as director
◊ IFCI Ltd has informed that CA. K. S.
Sreenivasan has been appointed as Director
on the Board of the Company.
3rd April 2014
• R Gandhi appointed RBI Deputy Governor
◊ R Gandhi has been appointed Deputy
Governor for a period of three years effective
today, RBI said in a statement. He was
Executive Director of the Reserve Bank
before being elevated to the post of Deputy
• PNB raises Rs 500cr capital through Tier-2
How ?
◊ Through Tier-2 (Basel III compliant) Bonds
6th April 2014
• SBI to offload up to Rs 4,000 cr bad loans to
Why ?
◊ This helps banks to take the equivalent
NPA figure out of books and make an
yearly provision for recovery or actual cash
7th April 2014
• RBI to issue Rs 10 bank notes with Rajan’s
Whats New ?
◊ The notes will bear the rupee symbol on the
obverse and reverse sides, with inset letter A
in both numbering panels. The year of issue,
2014, will be printed on the reverse side of
the notes
8th April 2014
• Deutsche Bank backs Anshu Jain
Who is he ?
◊ India-origin Co- Ceo,whose name figured in
an on going probe into currency manipulation
Why ?
◊ Because he is the man who had placed bank
on right track
• SBI Cap puts up brand “Kingfisher Airlines” for
Why ?
◊ For recovering the dues
• Doha bank is eyeing on Indian financial market
for quick growth
9th April 2014
• IDBI Bank nominates Sunil Chandra Mathur as
director on Soma Textiles Board
• Bank Of Japan chief doubts on BitcoItin’s future
Why ?
◊ Scandal plagued digital unit cant be a
currency unless it proves its reliability
10th April 2014
• State Bank Of Hyderabad to be principal bank
of Telangana
Why ?
◊ Its wide reach is a plus point for the region
11th April 2014
• Citi Bank says no to subsidiary mode
Why ?
◊ As per the recent guidelines of RBI,foreign
banks have to run their business in india by
making subsidiary of themselves but Citi
bank wants to operate its own entity
• Raghuram Rajan criticises federal reserves
Why ?
◊ For not expressing more public concerned
about the financial turmoil their low interest
rate have unleashed in every market
• Relief on card for home loan
What ?
◊ RBI panel suggests floating rate must be
reset any at the pre agreed dates
14th April , 2014
• RBI to shortly issue Rs 500,Rs 100 notes of
2014 printing year
15th April 2014
• Bank override card PIN requirement
Why ?
◊ Many merchants are yet to put new machines
that require PIN authorisation in the place.
◊ Therefore, customer find that they can
continue pay in the old way with more ease
16th April 2014
• Mayaram is new finance secretary
• SBI rolls out tab banking service
• SBI launched E-KYC
• Bhartiye Mahila Bank to open 60 more branches
this fiscal
#5 Incredible Banking
17th April 2014
• RBI pitches for independent body to set financial
bench mark
Why ?
◊ Aiming to prevent manipulation pf interest
rate and forex interest rate
• CavinKare and Bharatiya Mahila Bank signs
19th April 2014
• Banks may be deemed to set as corporate agent
for multiple insurer
What ?
◊ Working group recommends new model to
break deadlock over insurance broker
• Public Sector Banker plans to ask Finance
ministry for a 5 days week
Why ?
◊ On the citation of UK view, where banks
run for 5 days, relaxes bankers and gain
company’s efficiency,reduce absenteesm,
enterprise, competitiveness and retain talent.
22nd April 2014
• ECGC to rolls out factoring service for small
What ?
◊ It will help small enterprises to meet their
working capital requirements without
• G. Gopalakrishna takes over as Director of
23rd April 2014
• RBI adopted two stages verification for
Why ?
◊ To prevent mass level of on going online
• HDFC Bank profits 25%
How ?
◊ Due to robust loan growth and interest
• RBI curbs banks from extending guarantee
“letter of control” to overseas arms

Why ?
◊ Non fund based creditors used to make
foreign currency borrowing to repay rupee
• Indian not yet ready for differentiated bank-SBI
Why ?
◊ It is difficult to survive by selling only one/two
• PSU banks may get additional capital infusion of
Rs 7000 cr
◊ The Department of Financial Services would
request for additional funds in regular budget
as banks require more capital than what has
been allocated in the interim budget, the
official said.
24th April 2014
• Yes Bank net rises to 19%
How ?
◊ Strong loan growth
◊ Stable margin
◊ Lower provisions
• SBBJ reported profit 39%
How ?
◊ Robust growth in net interest income & non
interest income
25th April 2014
• RBI panel for softer retail loan terms
Why ?
◊ A working group set up by RBI has said
interest rate on existing floating loans need
not rise or fall with every change in base rate
of bank.
26th April 2014
ICICI Bank net rises 15 %
How ?
◊ Higher non interest income & robust loan
• RBI promotes 3 GMs to EDs
Whom ?
◊ N S Vishwanathan
◊ U S Paliwal
◊ Chandan Sinha
• Yes bank expands board
◊ 2 new directors
◊ Saurabh Srivastava
◊ Vasantha Gujrati
#6 Incredible Banking
• AXIS Bank profits 18%
How ?
◊ Healthy Margin
• SBT profits 17%
How ?
◊ Growth in net interest income
◊ Reduction in operating expenses
◊ Receipt of Subvention
◊ Recovery
• Raghuram Rajan went by panel’s view to held
policy rates
Why ?
◊ Upside risk to inflation in the near term
provided rationale pause
29th April 2014
• SBI recovers 350-400 Cr dues from “Kingfisher
• PNB Metlife India to enter pension space
• IDFC to buy loans in priority sector during its
transition process to start a bank
• SBM profits up 40%
How ?
◊ Steep reduction in bad loan
◊ Lower cost of deposit
30th April 2014
• Federal bank net rises to 277 cr
How ?
◊ Extreme reduction in NPA
• SBI signs up Reliance money infrastructure as
business correspondent
Why ?
◊ It will identityfy borrower, process loan
application and follow up on recovery
• IOB profit rises to 268 cr
How ?
◊ Reduction in provisioning
◊ Increase in interest & non interest income
◊ Healthy recovery
• NON CTS cheque may face delay from MAY 1
Why ?
◊ Banks to reduce clearing arrangement to 2
times a month
Dial *99# § Enjoy Banking!!! Yes It’s Really
True. Now There Is No Such Specific Need
Of Mobile Banking Application Because
You Can Avail Banking Simply Dialing #99#
Common For All Mobile Service
What is USSD?
It is a unique number (preceded by a * and followed
by a #) dialled from any handset that let’s the user to
access his/her bank account.For banking,Customers
can dial *99# to receive a menu of options On their
How is it different from mobile banking?
Most mobile banking services are app based
requiring the account holder to own a smartphone.
However,any mobile handset can be used for USSD
How it works...
• Customer keys in *99#
• Mobile operator connects session to NPCI
• Message displayed
• Welcome to NUUP (National Unified USSD
• If BANKING menu is chosen,customer is asked
for 7- digit MMID prvoided by the bank
• Customer enters 7 digit MMID Code
• Customer choosen from menu of numbered
• SMS of confirmation sent to customer.
Which Banking Services?
• Remittances
• Balance Enquiry
• Basic Mobile Handset Is Used
• Rs 1.50 Per Transaction
#7 Incredible Banking
Earn As You Splurge
We tell you how to make the best use of reward
points given by credit/debit card companies.
Do you know why reward points earned on credit/
debit card transactions expire if not redeemed on
time? Is it a significant loss? Why would a card
company deduct the reward points if not redeemed?
And, of course, why do card companies give reward
points for using their cards in the first place?
When a bank offers you a credit/debit card, it talks
at length about reward points. It is difficult to make
sense of such talk, but for credit card companies,
reward/loyalty programmes are an important
element of their sales pitch.
Are reward points useful for card holders? Why are
they important for card companies? The answer
lies in the economics of reward points that we try to
explain here.
Every time you use your credit/debit card for a
transaction, the card company earns an ‘interchange’
fee from the merchant outlet. It can vary from 1%
to 2.5%. The outlet can negotiate a lower fee if its
volumes are high.
Apart from the ‘interchange’ fee, the card company
makes money from the annual fee it charges from
card holders and interest earned on rolling over
unpaid bills. They share a part of earnings (mostly
from interchange fee) with the card holder in the
form of reward points to encourage him/her to use it
more frequently.
The number of points earned on each transaction
depends upon the amount involved, the type of card
used and at times on where the transaction is done.
Card variant:
On a basic card, for every transaction of Rs 100-150,
the card holder earns one-two points. The figure can
be three-five for premium and super premium cards.
The higher the card variant, the more points you
earn against the purchases made. For example, Axis
Bank My Zone card members earn up to 40 rewards
points per Rs 200 spent on dining on weekends,”
says Rajiv Anand, president, retail banking, Axis
“Typically, a card member can get one point per Rs
40-100 spent. This, however, depends upon the
card and the bank. For instance, American Express
gives one point per Rs 40 on platinum cards and one
per Rs 50 on non-platinum cards,” says Shailesh
Baidwan, country manager and head, consumer
services, American Express Banking Corp.
Entry-level cards are usually issued at a minimal fee
while premium cards have high joining and annual
Co-branded cards:
Reward points on co-branded cards are higher than
on most cards. Card companies launch co-branded
cards in partnership with airlines, petrol pump
companies and large stores.
The number of reward points on co-branded cards
can be 5-10 times the points earned on other cards.
“In case of co-branded cards such as airline cards,
if you buy tickets of the partner airline through the
card, you get extra reward points and discounts,”
says Rishi Mehra, founder, Deals4loan.com.
Where you are spending: Where you are swiping/
using your card also decides the number of reward
points you earn.
If you are using your card to pay power bills, the
points earned may be less than what you get when
your card is swiped at a restaurant. The reason may
be that the credit card company is getting a higher
interchange fee from the restaurant than from the
utility company.
“Some merchant outlets may pay the card company
a higher fee to increase sales. The company, in turn,
will give more reward points for card use at these
outlets,” says Rishi Mehra of deals4loan.com.
#8 Incredible Banking
Spending on special occasions:
One can also get
bonus points for
using cards on
special occasions.
For example, this
Valentine’s Day, some
reward programmes
offered 50 bonus
points on first online
transaction. Some
premium cards give bonus points on joining as well.
If your credit card bill shows 5,000 points against
purchases made in the past one year, what is value
of these points in monetary terms?
One reward point does not equal one rupee. In fact,
it is much less than that in most cases (20-30 paise).
“The value can vary from issuer to issuer. It can be
as low as 10 paise per point and as high as Re 1 per
point,” says Anil Ramachandran, head, credit cards,
IndusInd Bank. He says IndusInd Bank offers Re 1
benefit per point earned on its Signature card.
One way of calculating the value of the reward point
is by checking the price of the gift available against
redemption. For example, a credit card company is
offering Rs 1,000 wrist watch against 5,000 reward
points. Thus, each reward point is worth 20 paise
You can redeem reward points at any partner
merchant outlet or website.
“Most programmes have started offering a range
of options such as purchase of garments, home
appliances and cosmetics, besides gift vouchers
and donation to charities. However, you should
choose the programme that offers the most number
of options,” says Shailesh Baidwan of American
Express Banking Corp.
Online redemption is the most convenient as it can
be done without calling up the bank’s customer care
department. Most banks offer home delivery for
products purchased online against reward points.
You can also convert these points into air miles and
use them to buy air tickets.
Some loyalty programmes give a points-plus-pay
option, wherein a customer can use the points and
pay the balance to get what he wants. Some waive
off the annual fee in exchange for reward points.
Some banks even allow customers to accumulate
reward points earned on their debit and credit cards
(of the same bank) in one pool and redeem them
An example of this is the eDGE loyalty rewards
programme of Axis Bank. “Customers accumulate
reward points not only on their credit and debit cards
but also on savings account and forex remittances.
All the points are in one pool. The customer can
redeem all at once,” says Rajiv Anand of Axis Bank.
Reward points can expire after a period. The period
can vary from one-three years. Usually, banks
deduct the accumulated unused points at the end of
every financial year.
Rishi Mehra of deals4loan.com says this is done as
reward points are a liability on the books of banks,
which they want to do away with every year. This is
also a way to prod card holders to keep redeeming
the points.
Reward points are an incentive for customers to use
their cards as much as they can. Banks gain from
the interchange fee from merchant outlets, which
in turn gain from higher sales. The user of a card,
especially a credit card, benefits only if he uses it
judiciously. He should spend as much on credit card
as he would be able to pay within the interest-free
Besides, he must remember that reward points
should not be the primary reason for using credit/
debit cards.
Therefore,its indeed an important cause
So it is suggested to take it before it expires !!!
#9 Incredible Banking
Everywhere, we hear about the ideal concepts
like ‘Customer is the King’, ‘Customer’s Delight’,
‘Customer is our true boss’ etc. But, has any
one talked about the duties and responsibilities
of a bank customer? Does the customer have
only rights and privileges and doesn’t have any
duties and responsibilities?
The answer is a big ‘No’.
Here, I have listed the duties and responsibilities
of a bank customer in a focused and vivid
manner. A customer must remember these
things always.
1. The foremost duty of a customer is to comply
with the KYC norms that have become
universal now.
2. The customer must co-operate with the
bank in following all the standard rules
and procedures, without asking for any
3. The customer must remember his bank
account number. The account number is
synonymous with his name, for all practical
purposes, because he is identified more by
his account number than anything else, in a
4. The customer must remember to sign the
same way each time and his signature
must always match with his specimen
signature scanned and uploaded in the
bank’s computers. However, the customer
is entitled to change his specimen signature
once in a few years.
5. The customer has to bring his Passbook (in
case of S.B. Accounts) and Cheque Book (if
he enjoys this facility), whenever he visits
the bank in person. It will save a lot of time
for himself and the bank staff.
6. Whenever the customer visits the bank for
the second time, for completing an unfinished
job, it is advisable to carry all the relevant
papers and documents in full set, without
7. Those customers who have cheque book
facility shall not ask for a withdrawal form
or a loose cheque, because in the CBS
environment it will be difficult to oblige them,
especially when they want cash withdrawal.
8. The customer must be aware of his bank’s
business hours and shall not unnecessarily
trouble the bank staff to comply with his
requests outside the business hours. This is
because the customers, upon their request,
are provided with Debit Card and Internet
Banking facility free of cost, almost by all the
banks. Hence with these, a customer can
meet most of his financial needs, even when
his bank is closed.
9. The customer is expected to know the
distinction between the ‘Home Branch’ and
other branches of the same bank. This is
because certain functions can be carried out
only at the ‘Home Branch’ (e.g. issuance of
a new cheque book or a Debit Card, account
closure, change of address etc.).
10. In case of a non-Home Branch, several
restrictions exist for payment of cash to a
third party, limits imposed on withdrawal of
cash by oneself, sending RTGS or payment
of taxes etc. The customer must find out the
nature of such restrictions from his Home
Branch and remember them always.
11. The customer must behave decently and
politely when he is inside a bank or when he
contacts his bank over phone or email.
“Customer Is King” But Upto What Extent ?
#10 Incredible Banking
12. Especially when he contacts his bank over
phone, he must be very specific on his
query and end his conversation within a few
minutes, because the bank staff at the other
end has several constraints in prolonging
the conversation unnecessarily.
13. If necessary, the customer must visit the
branch in person to satisfy his needs, as
all his needs and wants cannot be fulfilled
through a phone call.
14. For certain types of jobs like withdrawal of
large sums of cash, premature cancellation
of a term deposit of huge value, issuance of
TDS certificate etc., advance intimation to
the bank is necessary.
15. The customer must approach the right
person (bank staff), for attending to his
particular need. He shall not expect all the
bank staff to perform every kind of job at a
16. Similarly, the customer must approach the
right branch/office for his special needs.
For example, in metros, there may be a
specialized branch for processing Housing
Loans or Forex transactions. Some branches
which have been designated as Corporate
Finance branches cannot be expected to
extend gold loans and agricultural advances.
17. When some bank staff is on leave, the
customer shall not approach another staff
for some special type of jobs. For instance,
a staff sitting at the counters cannot be
expected to process his loan proposal, in
the absence of a regular staff who has been
entrusted with this work.
18. The customer must understand his bank
is there only to fulfill his genuine banking
needs and the bank cannot act as his finance
manager or accountant. For the special
needs like investment and tax counselling,
the customer must approach his auditor or
any other competent professional only.
19. The customer shall not expect his bank to
offer solution for the problems faced by him
20. Whenever there is acute shortage of staff in
the branch, due to the absence of many staff
at a time (on the grounds of leave, training,
transfer, deputation etc.), the customer
must co-operate with the staff present at the
branch and learn to adjust, without showing
his impatience, irritation and anger on them.
21. The customer shall not attempt to jump
the queue, when there are several other
customers waiting before him for the same
purpose – like withdrawal/payment of cash,
purchase of DD, remittance of taxes, sending
RTGS/NEFT remittances etc.
22. The customer shall not demand any privilege
or concession or service to which he is not
entitled, as per the bank rules in vogue.
However, he may seek clarification from
the bank staff, regarding his ineligibility or
disqualification in this regard.
23. Once the bank manager has given his oral
approval for any credit proposal, it is the duty
of the customer to submit all the necessary
papers and documents in one bunch, neatly
sorted and arranged, without submitting
them in piecemeal. It will save a lot of time
for everyone and will obviate dissatisfaction
and complaints.
24. Having accepted all the terms and conditions
of sanction of a loan/advance, it is the duty of
the customer to comply with them sincerely,
honourably and in time.
25. Finally, the customer must realize that the
bank staff are also human beings and they
have got their own limitations. Hence, the
customer must treat them as his equal. If
he does this, he will get spontaneous respect
and love from all of them.
#11 Incredible Banking
? Risk arising out of defective documents of a
loan is called ...risk
a. Legal Risk b. Documentation Risk c. Default
Risk d. Credit Risk e. Combination of Credit
Risk 7 Legal Risk
? Which of the following card product launched
by bank is working on principle of “ Buy Now
Pay Later”
a. ATM Card b. Debit Card c. Credit Card
d. Charge Card
? Which of the following agencies/companies is
established by banks and financial institution
for the specific purpose of dealing in sale and
purchase of distressed assets
? Which of the following is not considered as
policy rate ?
a. Base Rate b. Repo Rate c. Marginal Standing
Facility d. CRR e. Non of these
? Which of the following is not credit rating
? An industrial unit is treated as micro unit if its
original investment in plant and machinery
doesn’t exceed :
a. Rs 25 Lac b. Rs 3 Cr c. Rs 1 Cr d. Rs 5 Lac
e. Rs 10 Lac
? As per RBI guidelines,advances granted for
education in india is treated as priority sector if
advances doesn’t exceed :
a. Rs 10 Lac b. Rs 7.5 Lac c. Rs 20 Lac d. Rs
15 Lac e. Rs Non of these
? # Which of the following is not a minority
community under priority sector guidelines
issued by RBI?
a. Sikh b. Budhist c. Jain d. Both (b) & (c) e.
None of these
? Kisan credit card is valid for .....
a. 1 Year b. 2 Year c. 3 Year d. 5 Year e. None
of these
? RBI increased reduced repo rate by 25
basis points recently .Which of the following
represents one basis points?
a. One hundredth of one percent
b. One tenth of one percent
c. One thousandth of one percent
d. One percent
e. None of these
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10. e 9. d 8. d 7.d
6. a 5. a 4. e 3. c
2. a 1. a