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Banking Awareness

Quick Reference Guide 2015

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ATM : An Automated Teller Machine (ATM) is a computerized telecommunications device that
provides the clients with access to financial transactions in a public space without the need for a cashier,
human clerk or bank teller.
Balance of trade: the part of a nation's balance of payments (difference between foreign entities with
domestic entities) that deals with merchandise (or visible) imports or exports.
Bancassurance : Selling of insurance products through banks. It also refers as cross selling of insurance
Bank Rate : This is the rate at which the central bank (RBI) lends money to other banks or financial
institutions. If the bank rate goes up, long-term interest rates also tend to move up. and vice versa.
Bounced Cheque : When the bank has not enough funds in the relevant account or the account holder
requests that the cheque is bounced (under exceptional circumstances) then the bank will return the
cheque to the account holder.
Camels : It is a supervisory rating system . It refers to Capital adequacy, Assets, Management
Capability, Earnings appraisal, Liquidity (also called asset liability management) and Sensitivity
(sensitivity to market risk, especially interest rate risk).
Cash Reserve Rate : Specifies the percentage of their total deposits the commercial; bank must keep
with central bank or RBI. Higher the CRR lower will be the capacity of bank to create credit.
CGT (Capital gain tax): It is a direct tax that will be levied on sales and purchases of capital assets such
as Shares, stakes, even costlier items which won’t have depreciation such as monuments, paintings.
Cheque Book : A small, bound booklet of cheques. A cheque is a piece of paper produced by your bank
with your account number, sort-code and cheque number printed on it. The account number
distinguishes your account from other accounts, the sort-code is your bank’s special code which
distinguishes it from any other bank.
Cheque Clearing : This is the process of getting the money from the cheque-writer’s account into the
cheque receiver’s account.
CIBIL : CIBIL refers to Credit Information Bureau India Limited was first established by SBI and
HDFC. It deals with both commercial and consumer segments. It maintains the record of the borrowers
by its members.
Clearing Bank : This is a bank that can clear funds between banks. For general purposes, this is any
institution which we know of as a bank or as a provider of banking services.
Commercial Paper : Commercial Paper is an instrument in the form of a promissory note by the
corporate borrowers for their short-term borrowings.
Core Banking Solution : The branches of a bank are connected to a central host, where online multiple
delivery channels like ATM, ABB, Debit Card, Mobile Banking etc under one roof.
Credit Card : A credit card is one of the systems of payments named after the Small Plastic card issued
to users of the system. It is a card entitling its holder to buy goods and services based on the holder’s
promise to pay for these goods and services.
Credit Rating : This is the rating which an individual (or company) gets from the credit industry. This
is obtained by the individual’s credit history, the details of which are available from specialist
organizations like CRISIL in India.
Credit-Worthiness : This is the judgement of an organization which is assessing whether or not to take
a particular individual on as a customer. An individual might be considered credit worthy by one
organization but not by another. Much depends on whether an organization is involved with high risk
customers or not.
Crop Loans : Bank provide crop loans to the farmers for their seasonal operations (Kharif, Rabi) of
agriculture like to purchase seeds, fertilizers.


Cross Selling : Cross selling refers to selling of multiple products to the existing customers such as
insurance, mutual funds etc ( to the banking customers).
Current Accounts : These accounts are maintained by the corporate clients that may be operated any
number of times in a day. There is a maintenance charge for the current accounts for which the holders
enjoy facilities of easy handling, overdraft facility etc.
Debit Card : Debit card allows for direct withdrawal of funds from customers’ bank accounts. The
spending limit is determined by the available balance in the account.
Deflation: Deflation is the continuous decrease in prices of goods and services. Deflation occurs when
the inflation rate becomes negative (below zero) and stays there for a longer period. In Inflation we have
two types demand pull (due to increase in demand), and cost push(due to increase in prices)
Demand Deposit : A demand deposit is the one which can be withdrawn at any time, without any notice
or penalty; e.g. money deposited in a checking account or savings account in a bank.
DTC (Direct tax code): This is a provision that can replace age old Income tax act 1961.Since this act
have loop holes (such as IT dept. Will have no jurisdiction over the fraud happened outside India even
Indian company purchased or shares of Indian company sold), so by this code Govt. Will have power to
curtail the menace of tax avoidance, and AAR (Authority for advanced ruling is a body by govt. Can act
independently over these issues and grant permission for MNC’s that their ‘transfer of shares’,’
absorption/amalgamation’ is legitimate or not.
EMI (Emulated Monthly Instalment) : An equal amount repaid with the principal and interest amount of
a loan on every month.
Endorsement : When the maker of the holder of the negotiable instruments sign on the back of the
cheque to “Pay certain person”. It means transfer from one person to another person.
Equity: Equity is a one financial instrument by which company invite the public to invest their money in
the company and investor can become a partner of the company. Generally, when the company have
insufficient money to expand its business it comes with equity shares. Angel investors are the persons
who will give financial help to a novice company to develop leaps and bounds.
Excise Tax: Tax imposed on specific goods and services, such as cigarettes and gasoline. Customs duty
is levied on inter market boundaries, ‘cess’ is defined as tax on tax.
FCNR Accounts : Foreign Currency Non-Resident Accounts are the ones that are maintained by the
NRIs in foreign currencies like USD, DM and GBP etc. The account is a term deposit with interest rates
linked to the international rates of interest of the respective currencies.
Financial inclusion: The purpose of this plan is ‘the fruits of development should be distributed among
the masses and the deprived classes of the society’, so different actions were taken up, such as BSBDA
accounts (Basic savings bank deposit accounts, general purpose accounts to provide for every citizen of
country by 01-01-2016 as part of financial literacy, and no frill accounts (no restriction loans will be
given) to bail out economically backward sections and alleviate them from poverty.
Fiscal consolidation: It is the process at which the govt. Undertake austerity measures to put restrictions
on its economy such as de licensing of industries, disinvestment from stack etc. Our India is following
under RBI, a perfect measure by FRBM act (fiscal responsibility and budgetary management act) 2003.
Fiscal policy: Fiscal policy defines the use of government spending and revenue collection to influence
the economy.
Fixed Deposits : FDs are the deposits that are repayable on fixed maturity date along with the principal
and agreed interest rate for the period. Banks pay higher interest rates on FDs than the savings bank
Floating Rate of Interest : It refers to the movement i.e., interest rate on a period basis due to outside
conditions of the market.
Foreign Direct Investment (FDI): Investment of foreign assets directly into a domestic company's
structures, equipment, and organizations. It does not include foreign investment into the stock markets
GAAR (General anti avoidance rules): These are the provisions by which govt. Can restrict tax

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avoidance (some MNC’s deliberately avoid tax by doing transactions in tax heavens such as Mauritius,
Luxembourg (Where Sahantha biotech fraud happened), Cayman Islands (where Vodafone fraud
happened). Govt. India wants to plan these rules from 2016.
GDP: GDP stands for Gross Domestic Product. It is a method of measuring the size of economy of a
country. We can define as the total market value of all the goods and services produced in a given period
of time in a country.
GNP: The total value in money of all finished goods and services produced in an economy in one full
year, and all net property income from abroad. The GNP growth rate is an important economic indicator
for country’s economic development.
Inflation: Inflation is as an increase in the price of bunch of Goods and services that projects the Indian
economy. An increase in inflation figures occurs when there is more demand and less supply of the
Interest : The amount paid or charged on money over time. If you borrow money interest will be
charged on the loan. If you invest money, interest will be paid (where appropriate to the investment).
Internet Banking : Online banking (or internet banking ) allows customers to conduct financial
transactions on a secure website operated by the bank. Banks are using internet as a channel to deliver
their service to their customers is referred to internet banking.
Kissan Credit Card : Kissan Credit card is issued by the bank to farmers to meet their cultivation needs
and inputs, for a period of three years.
Letter of Credit : The buyer of goods request his bank to give guarantee that the payment for the goods
will be paid to the seller. IN such case the bank issues LC.
Loan : A loan is a type of debt. In a loan, the borrower initially receives or borrows an amount of
money, called the principal, from the lender, and is obligated to pay back or repay an equal amount of
money to the lender at a later time. There are different kinds of loans such as the house loan, auto loan
Mergers in Banking : Mergers refers to combination of two or more banking companies into a single
one. Further, it shall continue on a single name.
Mobile Banking : Operating banking services on his / her mobile screens like checking his bank
account balances / fund transfers etc.., is referred mobile banking.
Monetary Policy : The RBI issues monetary policy annually to control money supply in the economy
and flow of credit by banks to control inflation. CRR, SLR, BANK Rate are the tools of monetary policy
(recent monetary policy statement was released on 29th September 2015). Next will be on 1st December
Monetary policy: It is the process by which the central bank or monetary authority of a country controls
(i) the supply of money, (ii) availability of money, and (iii) cost of money or rate of interest.
Monetized debt: The govt. Can restore the original situation before economic crisis period by offering
subsidies and royalties and different incentives to increase the total quality production of the country in
stipulated time, US govt. Did it in 2010-11.
Moratorium : When the repayment of a loan starts after certain period of its disbursement, that period is
called moratorium.
National Electronic Fund Transfer (NEFT) : Transfer of funds involving inter banking at the national
level through national clearing cell of the RBI at free press house. It refers to transfer of amount from
one bank account to another bank account.
NO-Frill Account : An account opened with Zero balance and where the transaction amount is limited
to certain limit is called No-Frill Accounts. Generally these are opened for Students.
NRE Accounts : Non-Resident External Accounts are the ones in which NRIs remit moneyh in any
permitted foreign currency and the remittance is converted to Indian rupees for credit to NRE accounts.
The accounts can be in the form of Current, Saving, FDs, recurring deposits. The interest rates and other
terms of these accounts are as per the RBI directives.

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Overdraft : This is when a person has a minus figure in their account. It can be authorized (agreed to in
advance or retrospect) or unauthorized (where the bank has not agreed to the overdraft either because the
account holder represents too great a risk to lend to in this way or because the account holder has not
asked for an overdraft facility).
Participatory note: It is the economic instrument at which the FII’s not enlisted with the prime
regulator of a country and use this tool to lift the money by means of forward trading/pricing and crate
financial chaos in a particular country and SEBI of our India amended to stop this nonsense.
Payee : The person who receives a payment. This often applies to cheques. If you receive a cheque you
are the payee and the person or company who wrote the cheque is the payer.
Payer : The person who makes a payment. This often applies to cheques. If you write a cheque you are
the payer and the recipient of the cheque is the payee.
Plastic Money : The payment system in mode of credit and other cards like debit card etc refers to
plastic money.
Point of sale (POS) System : It allows payment to be made at point of sales by the way of electronic
fund transfer.
Prime Lending Rate : It is the rate at which commercial banks give loan to its prime customers.
Quantitative easing: This is the process at which govt. Can ease the money flow in to the system by
buying the toxic assets of banks, this was happened in USA in past recession period by the chairman of
the then Fed reserve “Ben Bernanke”.
Recurring Deposits : These are also called cumulative deposits and in recurring deposit accounts, a
certain amounts of savings are required to be compulsory deposited at specific intervals for a specified
Repo Rate : Under repo transaction the borrower places with the lender certain acceptable securities
against funds received and agree to reverse this transaction on a predetermined future date at agreed
interest cost. Repo rate is also called repurchase agreement or repurchase option.
Reverse Repo Rate : It is the interest rate earned by the bank for lending money to the RBI in exchange
of govt. securities or “lender buys securities with agreement to sell them back at a predetermined time”.
Sales tax ‐ Taxes paid on the goods and services people buy, ‘Tobin tax’ is a tax which will be levied on
spot conversion of currencies in between countries, used curtail the ‘drain of market’.
Savings account : Savings account is an account generally maintained by retail customers that deposit
money and can withdraw them whenever they need. Funds in these accounts are subjected to low rates of
Security for Loans : Where large loans are required the lending institution often needs to have a
guarantee that the loan will be paid back. This takes the form of a large item of capital outlay (typically a
house) which is owned or partly owned and the amount owned is atleast equivalent to the loan required.
Single Window System : Single window counters will enable the customers to get services at a single
SLR : It is known as Statutory Liquidity Ratio. Each bank is required statutorily maintain a prescribed
minimum proportion of its demand and time liabilities in the form of designated liquid asset. (OR)
“Every Bank has to maintain a percentage of its demand and time liabilities by way of cash, gold etc.
Subprime crisis: The banks which have obligation to facilitate money flow may get struck their revenue
assets with insolvents and become toxic assets, the process is called subprime crisis.
Tax: A fee charged by a government on a product, income, or activity. If tax is levied directly on
personal or corporate income, then it is a direct tax. If tax is levied on the price of a good or service, then
it is called an indirect tax.
Time Deposit : Time deposit is a money deposit at a banking institution that cannot be withdrawn for a
certain “term” or period of time. When the term is over it can be withdrawn or it can be held for another
Transfer pricing: This is one tactic played by some fraudulent MNC’s which will have some suitcase

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companies in tax heavens and purchase the share value of some reputed companies in a country by its
intermediary in that country so that pricing of transferred shares will not have exact value.
UNCITRAL: United nations commission on International trade Law is an UN body looks after the
peaceful trade among countries without any legal problems and is denoted as the appellate authority for
legal violation of continental rules in trade and commerce.
VAT (Value added tax): It is an indirect tax on the consumption of the goods, paid by its original
producers upon the change in goods or upon the transfer of the goods to its ultimate consumers. It is
based on the value of the goods, added by the transferor. It is the tax in relation to the difference of the
value added by the transferor and not just a profit. All over the world, VAT is payable on the goods and
services as they form a part of national GDP.
WIPO: World intellectual property organization is a body looks after the issues of protection of
Intellectual property rights of a country of owner of patent, Marrakesh treaty for ‘Blind rights’ is
associated with this organization.

Recent RBI Committees
Committee on


Committee on Differential Premium System for Banks in India

Working Group on Compilation of Flow of Funds Accounts for Indian August 2015
Compilation of Flow of Funds Accounts of the Indian Economy
August 2015
High Powered Committee on Urban Co-operative Banks (UCBs)
June 2015
Committee on Data Standardization
March 2015
Internal Working Group (IWG) to Revisit the Existing Priority Sector March 2015
Lending Guidelines
Committee on Capacity Building in Banks and Non-Banks
Committee on Implementation of Counter-cyclical Capital Buffer
July 2014
Committee on Data and Information Management in the Reserve July 2014
Bank of India
Committee on Productivity Growth for the Indian Economy
June 2014
Committee to Review Governance of Boards of Banks in India
May 2014
Working Group on Resolution Regime for Financial Institutions
May 2014
GIRO Advisory Group
April 2014
Group on Enabling PKI in Payment System Applications
April 2014
Working Group on Pricing of Credit
April 2014
Committee to Recommend Data Format for Furnishing of Credit March 2014
Information to Credit Information Companies
Implementation Group on OTC Derivatives Market Reforms
March 2014
Committee on Financial Benchmarks
Technical Committee on Mobile Banking
Technical Committee on Enabling Public Key Infrastructure (PKI) in February
Payment System Applications
Committee to Revise and Strengthen the Monetary Policy Framework January 2014

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Jasbir Singh


D. K. Mohanty
D. K. Mohanty
R. Gandhi
LP. Parthasarathi
Lily Vadera
G. Gopalakrishna
B. Mahapatra
D. K. Mohanty
B. N. Goldar
P. J. Nayak
Anand Sinha
Umesh Bellur
Anand Sinha
Aditya Puri
R. Gandhi
P. Vijaya Bhaskar
B. Sambamurthy
Nachiket Mor



Committee on Financial Benchmarks
Committee to review the form of presentation of the Balance Sheet
and Profit and Loss Account
Committee to Study the Feasibility of Implementation of GIRO Based
Payment System in India
Committee on Licensing of New Urban Co-operative Banks

January 2014
June 2013

P. Vijaya Bhaskar
Y. H. Malegam

May 2013

G. Padmanabhan
Y. H. Malegam

Committee on Issues and Concerns in the NBFC Sector
Committee on Customer Service in Banks
Committee on Benchmark Prime Lending Rate (BPLR)
Committee to Review Lead Bank Scheme

August 2011
August 2011
October 2009
August 2009

Committee on Estimation of Savings and Investment
Committee on Technology UPgradation of Regional Rural Banks

March 2009
August 2008

Usha Thorat
M. Damodaran
Deepak Mohanty
P. Vijaya Bhaskar
C. Rangarajan
G. Srinivasan

Important Committees in News

A.Vaidyanathan – Task Force on Revival of Co-operative Credit Institutions

Anil Kaushal Committee – to examine the recommendations made by the TRAI on pricing of Spectrum.

Arvind Mayaram Committee – for giving clear definitions to (FDI) and (FII)

Arvind Mayaram Pane – report on the alleged irregularities at the National Spot Exchange Ltd (NSEL)

B N Srikrishna Committee – Separate state of Telengana Issue

B. Sambamurthy Committee – panel favours single mobile banking app on all SIMs.

Bimal Jalan panel – to scrutinize applications for new bank licenses.

BK Chaturvedi Committee – S Band Scam

C.Ramachandran Committee – Advisory Committee on Ways and Means Advances to State

Dr. Y.V. Reddy Committee – New Monetary Aggregates

Dr.A.S.Ganguly – Working Group on Flow of Credit to SSI Sector:

Dr.Y.V.Reddy Committee – The Standing Committee on International Financial Standards and Codes

G. Padmanabhan Committee – implementation of Bharat Bill Payment System (BPPS)

Justice A.P. Shah Committee : to head panel on road safety

K U.B. Rao – the idea of setting up Bullion Bank or Bullion Corporation of India

K.K. Mehrotra Committee – to inquire gas leakage in Bhilai Steel Plant.

K.M. Chandrashekhar Committee – Rationalization of investment routes & monitoring of Foreign
Portfolio Investment

Kirit Parikh panel – on fuel pricing (Diesel )

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M P Bezbaruah – to suggest suitable remedial measures to address concerns regarding security of
people from North East.

Mukul Mudgal – Committee member panel to probe IPL spot-fixing

N.H.Siddiqui – Working Group for setting up Credit Information Bureau in india

Nachiket Mor Committee – for small and payments bank

Nachiket Mor Committee – permits NBFCs to work as Business Correspondents of banks.

Parthasarathi Shome Committee – for Tax Administration Reform Commission (TARC)

Raghuram Rajan Committee – Recomendation on development index

self-sufficient in oil and natural gas by 2030.

Shivraj V Patil Committee – Report on 2 G Scam

Suma Verma Committee - to update, and revise the Banking Ombudsman Scheme, 2006

Urjit Patel Committee – Recommended Consumer Price Index (CPI) formula

V K Shunglu Committee – CWG Scam

Vijay Kelkar Committee – appointed by the Petroleum and Natural Gas Ministry to prepare a road map
to make India

Vishnu Sahay Committee – look probe into the Muzaffarnagar communal violence.

Important Committees (Old)
A C Shah Committee

Non Banking Financial Company

Abid Hussain Committee

Development Of Capital Markets

B Sivaraman Committee

Instititional Credit For Agricultural & Rural (NABARD)

Bhagwati Committee


Bhagwati Committee

Public Welfare

C Rao Committee

Agricultural Policy

Chatalier Committee

Finance To Small Scale Industry

Cook Committee(On Behalf of Capital Adequacy of Banks
BIS-Under Basel Committee )
Dharia Committee

Public distribution system

DR Gadgil committee

Agricultural finance

Dutta committee

Industrial licensing

Gadgil committee (1969)

Lead Banking system

Goiporia committee

Customer Service in banks

Hathi committee

Soiled banknotes

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Hazari committee (1967)

Industrial policy

Khanna committee

Non performing assets

L K Jha committee

Indirect Taxes

Mahalanobis committee

Income distribution

Marathe committee

Licensing of new banks

ML dantwala committee

Regional Rural banks

Mrs. KS Shere committee

Electronic Fund Transfer

M V Nair committee

Priority Sector Lending

Narsimaham committee

Financial system ( Reduction CRR & SLR)

P Selvam committee

Non performing assets of banks

Raja chelliah committee

Tax reforms

Rajamannar committee

Centre-state fiscal relationships

Rajamannar committee

Changes in banking laws, bouncing of cheques etc.

RK Hajare committee

Differential Interest Sector

Shome committee


SS Tarapore committee

Capital account convertibility

Tandon committee

Industrial sickness

Tandon committee

Working Capital Term Loan

Thingalaya committee

Restructuring of RRB

Vaghul committee

Mutual fund scheme

Wanchoo committee

Direct Taxes

Heads of Public Sector Banks
Allahabad Bank
Andhra Bank
Bank of Baroda
Bank of India
Bank of Maharashtra
Canara Bank
Central Bank of India
Corporation Bank
Dena Bank
Indian Bank

Head / Chairman /
Rakesh Sethi
Satish Kumar Kalra
(Additional Charge)
P S Jayakumar
Melwyn Oswald Rego
Sushil Muuhnot
Rakesh Sharma
Rajeev Rishi
Sadhu Ram Bansal
Ashwini Kumar
Mahesh Kumar Jain
(Additional Charge)

Indian Overseas Bank
Oriental Bank
Punjab & Sind Bank
Punjab National Bank

R. Koteeswaran
Animesh Chauhan

Jatinder Bir Singh
Syndicate Bank
Arun Shrivastava
UCO Bank
Union Bank of India
Arun Tiwari
United Bank of India
P. Srinivas
Vijaya Bank
Kishor Kumar Sansi
State Bank and It’s Arundhati Battacharya
IDBI Bank Ltd
Kishor Piraji Kharat

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Bank :

Bank is an institution which attracts deposits from the public and lends the
money to the needy persons at various interest rates.
Under Banking Regulation Act 1949, controls Banking Activities in India.

Reserve Bank of India (RBI) was established in 1935 and Nationalized in 1949.
Savings Account system in India was started by Presidency Bank, in 1833.
Cheque system was first introduced by Bengal Bank which was established in 1784.
Allahabad Bank is the oldest existing public sector bank in India.
Central Bank of India was the first public bank to introduce credit card.
Central Bank of India is the first commercial bank which was managed by Indians.
ICICI Bank was the first bank to provide Mobile ATM
Bank of Baroda has the maximum number of overseas branches.
India’s first “Talking” Automated Teller Machine (ATM) launched by Union Bank of India
(UBI) for visually impaired, was launched in Ahmedabad (Gujarat).
The National Payments Corporation of India (NPCI) launches India’s first rural bank ATM card
with a regional rural bank in Varanasi.
First bank established in India : Bank of Hindustan in 1770.
Second Bank : General Bank of India, 1786
The Imperial Bank of India (IBI) was the oldest and the largest commercial bank of the Indian
subcontinent. It was created in Jan 1921 by amalgamation of three presidency banks, those are,
o Bank of Bengal
o Bank of Bombay
o Bank of Madras
After nationalization in 1955, the Imperial Bank of India was named as State Bank of India
State Bank of India merged with three banks namely Bank of Bengal, Bank of Bombay and
Bank of Madras in 1921 to form the Imperial Bank of India which was converted as State Bank of
First Indian bank got ISO : Canara Bank
First Indian Bank started solely with Indian capital investment is PNB (Punjab National Bank).
Founder of Punjab National Bank is Lala Lajpat Rai.
Reserve Bank of India (RBI) was instituted in 1935.
First Governor of RBI : Mrs. Osborne Smith


First Indian Governor of RBI : Mr. C. D. Deshmukh
First Bank to introduce Savings Account in India : Presidency Bank in 1833
First Bank to introduce Cheque System in India : Bengal Bank in 1833
First Bank to introduce Internet Banking : ICICI Bank
First Bank to introduce Mutual Fund : State Bank of India
First Bank to introduce Credit Card in India : Central Bank of India
Credit cards are known as Plastic Money
Open market operations are carried out by RBI
Capital Market Regulator is SEBI
Largest Commercial Bank in India – State Bank of India
The International Bank for Reconstruction and Development (IBRD) is known as – World Bank
India’s First Financial Archive has been set up at – Kolkata
CRR, SLR, Repo Rate, Reverse Repo Rate are decided by RBI
Savings banks interest rates, fixed deposit interest rates, Loan Rates etc are decided by Individual
The bank which has launched Mobile Bank Accounts in association with Vodafone’s m-paisaHDFC Bank
Minimum money transfer limit through RTGs : 2 Lakhs
Maximum money transfer limit through RTGs : No Limit
Minimum & Maximum money transfer limit through NEFT : No Limit
NABARD was established in – July 1982
Largest Public Sector Bank in India – SBI
Largest Private Sector Bank in India – ICICI
Largest Foreign Bank in India – Standard Chartered Bank
Frist Indian Bank to open branch outside India i.e. London in 1946 – Bank of India
First RRB named Prathama Grameen Bank was started by Syndicate Bank.
First Bank to introduce ATM in India : HSBC in 1987, Mumbai
Bank of Baroda has the maximum number of overseas branches.
Premium Credit Cards exclusively for women launched recently by HDFC Bank.
Private Sector Bank that recently launched a product of Personal Loan called “SWIFT” – HDFC
The RBI Central Board consists of One Governor and not more than Four Deputy Governors
(Appointed / Nominated for a period of Four years).
o Present(23rd) Governor – Raghuram Rajan
o Present Deputy Governors :
 Urgit Patel - 14.01.2013 onwards
 H. R. Khan - 04.07.2011 onwards (Re-elected)
 R. Gandhi - 03.04.2014 onwards
 S. S. Mundra - 30.07.2014 onwards
Meena Hemchandra appointed as Executive Director of RBI
The first headquarter of RBI is Calcutta (1935)
Present Headquarter of RBI – Mumbai (1937 to present)
RBI has 29 Regional Offices in India

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The Financial year of the RBI starts on 1st July and ends on 30th June

Printing of Currency Notes and Securities :

Currency paper is imported from Dubai
Paper for currency and securities process at Hoshangabad (MP)
OVI (Optical Variable Ink) is used for printing currency which is imported from Switzerland.
Currency denomination is printed in 15 Languages.
Currency Notes Press, Nasik Road – Denomination of 1, 2, 5, 10, 50, 100
Bank Notes Press, Dewas (MP) : 20, 50, 100, 500, 1000
Modenized Currency notes Press : at Mysore, Salboni (West Bengal)
Minting of Coins : Mumbai, Kolkata, Hyderabad, Noida (UP)
Indian Security Press, Nasik Road : Printing of Postal Stamps, Postal Material, Judicial, NonJudicial Stamps, Cheques, Bonds, NSCs, Indira Vikas Patra, Kisan Vikas Patra, Securities of States
and PSUs.
Security Printing Press Hyderabad (1982) : Printing of Court Fee Stamps, Commemorative
Stamps, Kisan Vikas Patra, NSS Certificates
“1 rupee” denomination printed under the control of Government of India.
“1 Rupee” note is signed by Finance Secretary, Ministry of Finance and other denominations are
Signed by the Governor, RBI
RBI authorized to print Rs. 2 to Rs. 1000 denomination.
Parliament photo is printed on Rs. 50 note
Dhandi Satyagraha picture is on Rs. 500 denomination.
Rs. 10 is the largest circulation denomination.
“Rupee” symbol is designed by Uday Kumar, Tamil Nadu.
The symbol adopted for the Indian Rupee is Devanagari Script.
Plastic Currency issued first by Australia.
India is planning to issue plastic currency in Rs. 10 denomination.

Basel Committee :

In 1988, the Basel Committee on banking supervision introduced the Basel-I accord or the risk
based capital requirements to deal with the weakness in the leverage ratio as a measure for solvency.
IT was the very first attempt to introduce the concept of minimum standards of capital adequacy.
Basel-I : Basel I addressed only one Credit Risk.
Basel-II norms : Unfortunately India could not fully implement this but it is now gearing up under
the guidance from the Reserve Bank of India to implement it from 1st April 2009.
Basel II : Basle II addresses 3 major pillars / Risks.
1. Credit Risk – 60%
2. Market Risk – 25%
3. Operational Risk – 15%
Minimum capital to be maintained by banks under Basle II is 8%
Basel III norms are effective from 1st January 2013

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RBI extended the timeline for full implementation of Basel III norms to 31st March 2019 instead of
31st March 2018.
Basel III proposes many new capital, leverage and liquidity standards to strengthen the
regulation, supervision and risk management of the banking sector.


The full form of RTGS is “Real Time Gross Settlement”.
RTGS system is a funds transfer system where transfer of money or securities takes place from one
bank to another bank a “REAL TIME” and “Gross” basis.
An RTGS payment system is one in which payment of Rs. 2 Lakh and above instructions between
banks is processed and settled individual and throughout the day (SBI PO 2014)
The settlement is on Gross Basis unlike usual clearing system which is on Net basis.
In RTGS, RBI acts as the settlement agent between the banks, settlement risk and systemic risk are
minimized because of RTGS. It is the fastest mode of transaction (SBI PO 2014)
Credit is to be available within 2 hours.
Timings : 9 AM to 4:30 PM for customers and 9 AM to 6 PM Indian Bank Transactions. For
Saturdays it is 9 AM to 1:30 PM, Customers and in case of Inter Bank 9 AM to 3 PM.


The full form of NEFT is “National Electronic Funds Transfer”
Transaction Time increased to 9 AM to 7 PM on weekdays and 9 AM to 1 PM on Saturday, with
11 hourly settlement on weekdays and 5 on Saturdays.
NEFT enables funds transfer from one bank to another but works a bit differently than RTGS.
NEFT uses an Indian Financial System (IFS) code
o an alpha numeric code that identifies the bank branches. It has 11 digits – 1st four represent
Bank code, 5th reserved as control code (presently 0) and remaining 6 are branch code.
Settlement period B+ (destination bank to credit within 2 hours or return). For delay repo rate +2%
interest payable to customer.
Under this system, individuals, firms and corporate can electronically transfer funds from any bank
branch to any individual, firm or corporate having an account with any other bank branch in the
country participating in the system.
What are the minimum and maximum amount of remittance under RTGs and NEFT :
No Minimum Limit (SBI PO
No upper ceiling
No upper ceiling
Maximum Amount
CTS : Cheque Truncation System (CTS) or Image-based Clearing System (ICS), in India , is a
project undertaken by the Reserve Bank of India (RBI), for faster clearing of cheques. CTS is
basically an online image-based cheque clearing system where cheque images and Magnetic Ink
Character Recognition (MICR) data are captured at the collecting bank branch and transmitted
electronically. Truncation means, stopping the flow of the physical cheques issued by a drawer to the
drawee branch.
Minimum Amount

Rs. 2 Lakhs

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IFSC (Indian Financial System Code) :
- Indian Financial System Code is an alphanumeric code that uniquely identifies a bank
branch participating in NEFT system.
- This is a 11 digit code with the first 4 alpha characters representing the bank, the 5th
character is 0 (zero) and the last 6 characters representing the bank branch.
- IFSC is used by the NEFT system to identify the originating / destination branks / branches
and also to route the messages approximately to the concerned banks / branches.
- For Ex : SBIN0015986
 First 4 characters SBIN – refers to State Bank of India
 0 is a control number
 Last six characters (015986) represents the SBI branch Jail Road, Hari Nagar, New
MICR : Stands for Magnetic Ink Character Recognition. MICR code is a numeric code which
uniquely identifies a bank branch participating in the ECS Credit Scheme. MICR code consists of 9
(SBI PO 2014)
- First 3 digits represent the city (400)
- Next 3 digits represent the bank (229)
- Last 3 digits represent the branch (128)
BASIC SAVING BANK DEPOSIT ACCOUNT (BSBDA) : Under the guidelines issued on10th
August 2012 by RBI, any individual, including poor or those from weaker section of the society, can
open zero balance account in any bank. BSBDA guidelines are applicable to “all scheduled
commercial banks in India, including foreign banks having branches in India”.
PAN Card as of May 2010, the Income Tax Department in India has made it mandatory for all
Indians to have a PAN card (Permanent Account Number), irrespective of their tax filing status.
CRR : According to sect 42 (I) RBI Act 1934, every bank licensed by RBI should keep certain
percentage its NKTL (net demand and time liabilities) with RBI in the form of cash is known as
- No interest will be paid by RBI on CRR to the banks.
- The present CRR is 4.0%
- Till 22nd June 2006 the min CRR rate was 3% and max was 15%.
- Now there is no limit on max & minimum on CRR.
- RBI decreases CRR to promote economic growth of the country.
SLR (Statutory Liquidity Ratio) :
- Seciton 2(A) of Bankign Regulation Act 1943 says SLR is the percentage of NDTL that
banks need to maintain as reserves in the form of approved securities, gold and cash.
- The present SLR is 21.5 %
- The max SLR is 40%.
Repo Rate :
- Repo is the rate at which RBI lends to commercial banks as term loans by keeping their
securities with RBI to meet their short term needs (Repo-Repurchase).
- The present Repo Rate is 6.75 %
Reverse Repo Rate :

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The process of borrowing money from banks by RBI by keeping its securities as collateral
with banks is known as Reverse Repo.
- The interest paid by RBI to banks on such borrowing is known as Reverse Repo Rate .
- The regular infection & absorption of liquidity through repo and reverse repo process by
using securities as collateral is known as liquidity adjustment facility.
- The present Reverse Repo Rate is 5.75 %
Bank Rate
- Is defined in Sec (49) of RBI Act 1934 it is the interest rate charged by RBI on the long
term loans given to banks again rediscounting of the bills and other commercial paper.
- Present Bank Rate is 7.75 %
Marginal Standing Facility (MSF)
- This was introduced by RBI in May 2011. This loan provided by RBI to banks at the rate of
2% of its NDTL Banks should be request for MSF between 3-30 to 4-30 pm electrically
under negotiable dealing system (NDS).
- This loan is provided only for 1 day.
- If any bank takes this loan for Friday it can repay it on Monday with the same interest.
- Interest charged on MSF at present is 7.75 %
- The min loan provided by RBI under MSF is 1 Crore.
Demand Draft : A demand draft is an instrument used for effecting transfer of money. It is a
negotiable instrument.
Cheque : Cheque is a negotiable instrument instructing a bank to pay a specific amount from a
specific account held in the maker / depositor name with that Bank.
From 1st April 2012, cheques, drafts, pay orders and banker’s cheques are valid for only three
Parties to a Cheque : Basically there are three parties to a cheque viz., (1) Drawer, (2) Drawee and
(3) Payee
 Drawer : A drawer is the person who has an account in the bank and who draws a cheque
for making payment. He is the customer or account holder.
 Drawee : A drawee is the person on whom the cheque is drawn. He is liable to pay the
amount. In case of a cheque, the drawee happens to be the banker on whom the cheque is
drawn, he is also called the paying-Banker.
 Payee : A payee is the person to whom the amount stated in the cheque is payable. It may be
either drawer himself (self-cheques) or only other third party states in the cheque.
Types of Cheques : Cheques are of the following types
 Order Cheque : A cheque payable to a particular person or his order is called an order
 Bearer Cheque : A cheque which is payable to a person whosoever bears, is called bearer
 Blank Cheque : A cheque on which the drawer puts his signature and leaves all other
columns blank is called a blank cheque.
 Stale Cheque : The cheque which is more than six months old is stale cheque.
 Mutilated Cheque : If a cheque is torn into two or more pieces, it is termed as mutilated

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Post Dated Cheque : If a cheque bears a date later than the date of issue, it is termed as postdated cheque.
Open Cheque : A cheque which has not been crossed is called an Open Cheque. Even if a
cheque is crossed and subsequently the drawer has cancelled the crossing at the request of the
payee and affixes his full signature with the words “crossing cancelled pay cash,” it becomes
an open cheque.
Crossed Cheque : A cheque which carries two parallel transverse lines across the face of the
cheque with or without the words “I and co,” is said to be crossed.
Gift Cheques : Gift cheques are sued for offering presentations on occasions like birthday,
weddings and such other situations. It is available in various denominations.
Traveller’s Cheques : It is an instrument issued by a bank for remittance of money from one
place to another.

 State Bank of India (SBI) :

Imperial Bank of India acted as central bank of our country from 1921 to 1935.
Imperial Bank of India was nationalized and renamed as “State Bank of India” in 1955.
First Chairman, A. D. Gorwala.
SBI has 7 Subsidiaries (SBI Ground). They are : State Bank of Hyderabad, Mysore, Indore,
Patiala, Saurashtra, Travancore, Bikaner & Jaipur. All these were formed in 1959.
The total number of associate banks of SBI currently working in the country is – Five
SBI is the largest commercial bank of India
SBI launched a New Scheme “Parvartan” to attract more customers by rendering better
SBI has introduced the Tiny-Card with biometric identification to achieve Financial
Inclusion. Tiny-Card provides easy banking services for under privileged communities.
SBI Head Quarters : Mumbai
State Bank of India launched “Mobi Cash Eash” a mobile wallet service that allows users to
transfer funds and make bill payment easily using Mobile Phone.
On 7th October 2013, Arundhati Bhattacharya is appointed as the first lady chairperson for
SBI & Associated Banks :

S. No Name of the Bank
Head Office Established Year
State Bank of India
State Bank of Hyderabad
State Bank of Mysore
State Bank of Travancore
Trivendram 1945
State Bank of Patiala
State Bank of Jaipur & Bikaner Jaipur
 Note :
 In 2008 the State Bank of Sourashtra merged with SBI.
 In 2010 the above State Bank of Indore also merged with SBI.
Slogans of SBI :
 With you all the way

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Pure Banking nothing else
The banker to every Indian
The Nation Banks on us

 Indian Origin Banks Nationalization :

On 19th July 1969 Central Government (Indira Gandhi) nationalized 14 Indian origin banks
and on 15th April 1980 again nationalized other 6 Indian origin banks.

Nos. Name of the Bank

Allahabad Bank
Bank of Baroda
Bank of Maharashtra
Bank of India
Central Bank of India
Canara Bank
Dena Bank
Indian Bank
Indian Overseas Bank
Punjab National Bank
New Delhi
Syndicate Bank
Union Bank of India
United Commercial Bank (UCO Bank)
United Bank of India
Andhra Bank
Corporation Bank
Oriental Bank of Commerce
New Delhi
Punjab and Sindh Bank
New Delhi
Vijaya Bank
IDBI Bank Ltd
ECGC (The Export Credit Guarantee Corporation of India Mumbai
Note : In 1993, the New Bank of India merged with Punjab National Bank due to the incurring
Bharatiya Mahila Bank was established on 19th November 2013 on the occasion of the 94th birth
anniversary of former Indian Prime Minister Indira Gandhi.
RBI Permits 4 Non bank entities to set up white label ATMs :
The Reserve Bank has issued “Certificate of Authorization” to four non bank entities :
 Tata Communications Payment Solutions
 Muthoot Finance
 Prizm Payment Services and
 Vakrangee Ltd., to set up White Label ATMs (WLAs) in the country.
Note : Most of the ATMs belong to banks, but the cash dispensing machines which are owned and
operated by non banking companies are called White Label ATMs.

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RBI permits Srei to roll out White Label ATMs : Srei Infrastructure Finance is planning to start
roll out its White Lable ATMs (WLAs) between July and September starting with a pilot of 200 Tier
III towns in Uttar Pradesh and Bihar.
New bank license period – 18 months
(SBI PO 2014)
New bank licenses paid up capital – 500 Cr
(SBI PO 2014)
Asian games after which country withdrawal India ready to conduct ? – Vietnam (SBI PO 2014)

Stock Market

A Stock market is a public or private market for the trading of company stock and derivatives of
company stock on agreed price. These are securities listed on a stock exchange.

BSE (Bombay Stock Exchange)

It was established on 1875, and its head office is in Mumbai.
BSE Index is known as SENSEX. SENSEX measure on the basis of 30 top companies.
BSE Headquarters : Mumbai, India
BSE Managing Director & CEO : Mr. Ashish kumar Chauhan

NSE (National Stock Exchange)

NSE started trading in the equities segment on 3rd November 1994.
NSE Headquarters : Mumbai, India
Director & CEO : Chitra Ramakrishna

Securities and Exchange Board of India (SEBI) :

It was established in the year 1988 and given statutory powers on 12th April 1992.
The headquarters of SEBI is located in the business district of Bandra – Kurla complex in
The Chairman of SEBI – Upendra Kumar Sinha (U K Sinha)
The whole time member of SEBI – Prashant Saran
The first Chairman of SEBI was – Dr. S. A. Dave
Important Note : The Forward Markets Commission (FMC) was on 29th September 2015 was
merged with SEBI.

KYC (Know Your Customer)

RBI introduced KYC in Banking sector under 35(A) of Banking Regulation Act 1949.
This KYC was introduced in August 2002.
To identify the people who wants to transact with any bank and to know about the customer before
opening an account. This process involves verification of customers id proof & address proof.
The main objectives of KYC are :
o To prevent money laundering
o To prevent money transfer to and from illegal activities.

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o Money Laundering : Acquiring, Owning, Processing (or) Transferring of money earned
through crime (or) knowingly entering in to any transaction related to crime within (or)
outside India (or) it is the process of conversion of illegally obtained money.
New KYC Norms Set :

The Reserve Bank of India on 2nd September set new Know Your Customer (KYC) rules to
facilitate opening of bank accounts for foreign students studying in India.
Banks can open Non-Resident Ordinary (NRO) accounts for foreign students on the basis of their
passports after verifying their visa and immigration details and on production of the admission letter
from an educational institution, RBI said in a circular.

Indian Banks’ Association (IBA) :

Established on 26th September 1946.
IBA’s Chairman : T. M. Bhasin (Indian Bank)

Institute of Banking Personnel Selection (IBPS) :

The Institute of Banking Personnel Selection (IBPS) is an autonomous agency in India, which
started its operation in 1975 as Personnel Selection Services (PSS). In 1984, IBPS became an
independent entity at the behest of Reserve Bank of India (RBI) and public sector banks.
The First Chairman of its Governing Board was Dr. Manmohan Singh, the Governor of RBI (at
that time).
Present Chairman & Managing Director : Anup Shankar Bhattacharya

NABARD (Natinal Bank for Agricultural and Rural Development) :

NABARD was established on the recommendations of Shivaraman Committee.
NABARD was established by an act of Parliament on 12th July 1982 to implement the National
Bank for Agriculture and Rural Development Act 1981.
NABARD replaced the (ACD) and Rural Planning and Credit Cell (RPCC) of Reserve Bank of
India, and Agricultural Refinance and Development Corporation (ARDC).
Head Quarters of NABARD is situated in Mumbai.
The present Chairman of NABARD is Dr. Harish Kumar Bhanwala.
NABARD is the “Micro-Finance Regulatory Authority”.
Water Shed Development Fund was instituted with NABARD.

Small Industries Development Bank of India (SIDBI)

The SIDBI Act was passed by the Parliament on October 1989 and the bank commenced its
operations from 2nd April 1990.
Headquarters : Lucknow (U.P)
Chairman and Managing Director : Kshatrapati Shivaji

Industrial Development Bank of India (IDBI) :

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The Industrial Development Bank of India (IDBI) was established on 1st July 1964 under an Act
of Parliament as a wholly owned subsidiary of the Reserve Bank of India.
On 16th February 1976, the ownership of IDBI was transferred to the Government of India.
Headquarters of IDBI is at Mumbai, India.
Chairman and Managing Director of IDBI is Ms. Raghavan.

Industrial Credit and Investment Corporation of India (ICICI) :

ICICI was established in 1955.
ICICI Head qurters : Mumbai, India
ICICI Present CEO : Chanda Kochhar.

International Bank for Reconstruction and Development (IBRD) : (World Bank)

Established in : 1945
IBRD Head Office : Washington DC
President : Jim Yong Kim

IDFC (Infrastructure Finance Company)

Established : 1997
Head Office : Mumbai
Chairman : Rajiv B. Lal

LIC (Life Insurance Corporation of India)

On 1st September 1956 Life Insurance Corporation of India was established with the capital of Rs. 5
Crore given by the Government of India.
Head Office : Mumbai, India
LIC Chairman : S. K. Roy
7 Zonal Offices : Mumbai, Delhi, Chennai, Bhopal, Hyderabad, Kanpur, Kolkata

GIC (General Insurance Company)

British Rule introduced GIC.
In 1950, Tritan General Insurance Company Ltd was established at Calcutta.
GIC Chairman : A. K. Roy
Headquarters : Mumbai, India
GIC insures Non Life things like Vehicle, Property, Stock etc.
GIC premium has to be paid every year and payout is made only if the event for which insurance has
taken happens.
Subsidiaries of GIC
National Insurance Company Limited
New India Assurance Company Limited
Oriental Insurance Company Limited
United India Insurance Company Limited

New Delhi

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EXIM (Export-Import) Bank of India

Established on : 1st January 1982
Setup under EXIM Bank of India Act 1981
Headquarters : Mumbai
EXIM Bank Chairman : Yaduvendra Mathur

Micro Finance :

Micro Finance represents an economic activity to promote employment and growth through the
support of micro-entrepreneurs and small businesses, of the low-income household, by extending
various financial services, such as Loans, Savings, Money Transfer, Insurance Services etc.
The Father of Micro Finance : Md. Yunis Khan (Bangladesh)
Y. H. Malegam is the chairman of the committee constituted by RBI to study issues and concerns in
the Micro Finance Institutions.


The National Association of Software and Services Companies (NASSCOM).
The Indian Chamber of Commerce is a consortium that serves as an interface to the Indian
Software industry and Indian BPO industry.
NASSCOM President R. Chandra Sekhar.
It was established in 1988. NASSCOM is a Non-Profit Organization.
Headquarters : New Delhi, India with Regional Offices in the cities of Mumbai, Chennai,
Hyderabad, Bangalore, Pune and Kolkata


The Associated Chambers of Commerce and Industry of India (ASSOCHAM)
ASSOCHAM President : Rana Kapoor
The Association’s Head Office is located in New Delhi, India and Regional Offices are located in
the cities of Ahmedabad, Bangalore and Kolkata.

International Finance Corporation (IFC)

Established Year : 1956
Affiliate of the IBRD
Headquarters : Washington D. C., United States
The IFCI is a member of the World Bank Group.
Major objective is economic development by encouraging growth of productive private enterprise.

International Development Association (IDA) :

Established Year : 1960
Headquarters : Washington D.C., United States
Membership – 172 Countries

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The IDA is a member of the World Bank Group.

International Monetary Fund (IMF)

International Monetary Fund (IMF) was set up by 44 Nations under the Bretton Woods
Agreement of July 1944. This institute was established on 27th December 1945. But it is started its
function on 1st March 1947.
Headquarters : Washington D.C., United States
Members – 188 Nations (Founding), 188 Nations (To Date) 188 Countries, 29 Countries (Founding)
The Head of IMF is known as Managing Director
The Head of IMF – Chirstine Lagarde [Former Finance Minister of France]
The financial year of IMF : 1st May – 30th April
The head of IMF elected for 5 years (But can be removed earlier).
Latest / Last Member of IMF – Tuvalu
Quotas and Voting Ranking – India occupies 9th Place in IMF General Quotas where USA in 1st,
Japan in 2nd, Germany in 3rd Place.
Special Drawing Rights (SDR) – It was created by IMF in 1970. It is also known as Paper Gold.
Cuba is not a member of IMF. Cuba left IMF in 1964.

Asian Development Bank (ADB)

Established in Manila in 22nd August 1966
Headquarters : Manila
ADB President : Takehiko Nakao (2013)
Functioning from : 1st January 1967

Asian Clearing Union (ACU)

Established year : 9th December 1974
Headquarters : Taheran, Iran
ESCAP : Economic and Social Commission for Asia and Pacific
Member Economies : 9 (Bangladesh, Bhutan, Iran, India, Maldives, Nepal, Pakistan, Sri Lanka
and Myanmar)

Bank for International Settlement (BIS)

Established Year : 17th May 1930
Location : Basel, Switzerland
General Manager : Jaime Caruana
Membership : 60 Central Banks
It also provides banking services, but only to central banks and other international organizations. It is
based in Basel, Switzerland, with representative offices in Hong Kong and Mexico City.

Some Important Talking ATM Questions :

Which Bank established First Talking ATM in India ?

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o Union Bank of India (Union Bank)
Which city gets the country’s first Talking ATM ?
o Ahmedabad
Which State gets the country’s first Talking ATM ?
o Gujarat
Talking ATM Specially designed for ______ people ?
o Blind
Who inaugurated the country’s first Talking ATM ?
o CMD of UBI, D. Sarkar
Talking ATM has what kind of Special Interface ?
o Voice Interface
Which was the second bank to launch the Talking ATM in India ?
o State Bank of India
Which company installed White Lable ATM first in the country ?
o Tata

Foreign Direct Investment (FDI)
o FDI is a direct investment into production or business in a country by an individual or company in
another country, either by buying a company in the target country or by expanding operations of an
existing business in that country.
o Current Values of FDI Limits in Various Sectors are
o Agriculture - 100%
o Civil aviation - 49%
o Courier service - 100%
o Credit rating - 74%
o Defense - 49%
o Education - 100%
o FM radio - 26%
o Insurance - 49%
o Multi brand - 51%
o Pension - 49%
o Pharma - 100%
o Power - 49%
o Print media - 26%
o PSBs - 20%
o Pvt bank - 74%
o Railway infrastructure - 100%
o Single brand - 100%
o Stock exchange - 49%
o Telecom - 100%
o Tourism - 100%
o White Label ATMs - 100%

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Indian TAX System

Indian Government Taxes :
o Direct Taxes : Income Tax, Capital Gain Tax, Corporate Tax, Gift Tax, Wealth Tax
o Indirect Taxes : Central Excise Duty, Service Tax, Customs Duty, Stamp Duty, Land Tax,
Luxury Tax, Advertisement Tax, Sales Tax (VAT)
Income Tax – Income Tax Levied on Personal Income
Men and Women (below 60 years of Age) :
o Upto Rs. 2,50,000 – Nill
o Rs. 2,50,001 – Rs. 5,00,000 – 10%
o Rs. 5,00,000 – Rs. 10,00,000 – 20%
o Rs. 10,00,000 and above – 30%
Senior Citizens (Men, Women above 60 years of age but below 80 years)
o Upto Rs. 3,00,000 – Nill
o Rs. 3,00,001 – Rs. 5,00,000 – 10%
o Rs. 5,00,001 – Rs. 10,00,000 – 20%
o Rs. 10,00,000 and above – 30%
Very Senior Citizens (Mens & Womens above 80 years of age)
o Upto Rs. 5,00,000 – Nill
o Rs. 5,00,001 – Rs. 10,00,000 – 20%
o Rs. 10,00,001 and above – 30%
Capital Gain Tax : It is a part of income tax levied on income of the shares, house property etc.
Corporate Tax : Largest yield to Union Government comes from corporate tax since 2006-07.
Corporate tax is levied on registered companies and corporations @ 30%.
o MAT Tax : Minimum Alternative Tax
o Zero Tax : companies have to 20% of their profits started in 1996-97.
Wealth Tax : Only on unproductive assets such as guest houses, jewellery, residential bungalows.
Started on 01-04-1957. It is recommended by Kaldor.
Gift Tax : Persons receive gifts in cash (or) kind, will have to pay tax with value exceeds Rs.
50,000/- comes into force from 01-01-2009. Does not apply to gifts received either from relatives or
in marriage.
Indirect Taxes :
o Sales Tax : Largest yield to state government comes from states tax (VAT). VAT tax
recommended by L K Jha in 1976 and implemented from 2003-04.
o Service Tax : 1994-95, Raja Chellaiah Committee recommended.
o Luxury Tax : Levied on who stayed customers in star hotels etc.
o Central Excise Duty : Levied on domestic production of goods
o Stamp Duty : It is levied on sale of the assets and properties
o Land Tax : Levied on agricultural lands
o Customs Duty : Levied on Exports and Imports. About 99% of customs comes from import
o Advertisement Tax : Levied on Media and Other advertisements.

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(from April 2015 to October 2015)

April 2015

Kotak Mahindra-ING Vysya merger gets RBI approval.
The Reserve Bank of India penalised 16 central cooperative banks with a fine of Rs. 5 lakh each
for non-adherence of the Know Your Customer and Anti-Money Laundering guidelines.
o Those 16 Central Co-operative Banks (CCBs):
 The Dumka Central Co-operative Bank Ltd., Dumka (Jharkhand).
 The Gumla Simdega Central Co-operative Bank Ltd., (Jharkhand).
 The Dhanbad Central Co-operative Bank Ltd., (Jharkhand).
 The Rewari Central Co-operative Bank Ltd., Rewari (Haryana).
 The Mansa Central Co-operative Bank Ltd., Mansa (Punjab).
 The Jind Central Co-operative Bank Ltd., (Haryana).
 The Gopalganj Central Co-operative Bank Ltd., Gopalganj (Bihar).
 Ajmer Central Co-operative Bank Ltd., Ajmer (Rajasthan).
 Hanumangarh Kendriya Sahakari Bank Ltd., (Rajasthan).
 The Central Co-operative Bank Ltd., Bikaner (Rajasthan).
 The Sirohi Central Co-operative Bank Ltd., Sirohi (Rajasthan).
 The Bundi Central Co-operative Bank Ltd., Bundi (Rajasthan).
 The Boudh Co-operative Central Bank Ltd., (Odisha).
 Bhawanipatna Central Co-operative Bank, (Odisha).
 Cuttack Central Co-operative Bank Ltd., (Odisha).
 The Sambalpur District Co-operative Central Bank Ltd., (Odisha).
Development finance institution Nabard has asked the central government to allow it to raise Rs.
5,000 crore to Rs. 10,000 crore worth of tax-free bonds in the current fiscal with commercial banks
being able to meet their priority sector lending targets.
Prime Minister Narendra Modi asked the Reserve Bank to use Indian paper and ink to print
Currency Notes and set a target date for achieving the objective as part of the 'Make in India'
The government has asked banks and insurers to develop a common infotech module by June, to roll
out three new social security schemes announced in the Union Budget for 2015-16.
Public sector lender Dena Bank has partnered with government-owned LIC (Life Insurance
Corporation) of India to provide insurance cover to all Aadhaar-linked savings account holders.


Prime Minister Narendra Modi launched the Micro Units Development Refinance Agency
(MUDRA) Bank which will provide credit of up to Rs. 10 lakh to small entrepreneurs and act as a
regulator for 'Micro-Finance Institutions' (MFIs).
o In his Budget speech, Finance Minister Arun Jaitley had proposed the MUDRA Bank will
have a corpus of Rs. 20,000 crore, and credit guarantee corpus of Rs. 3,000 crore.
The Reserve Bank has instructed banks to restructure loans of farmers whose crops have been
damaged by the recent unseasonal rains and hailstorms.
Hinduja Group-promoted IndusInd Bank has agreed to buy Royal Bank of Scotland's(RBS)
diamond and jewellery financing business in the country for an undisclosed sum.
Syndicate Bank and Life Insurance Corporation have signed a memorandum of understanding to
implement the ‘Pradhan Mantri Jeevan Jyoti Bima Yojana’.
o LIC will provide a life cover of Rs. 2 lakh in case of death of the insured person at a nominal
premium of Rs. 330 per annum.
State Bank of India (SBI) has cut the interest rate for new home loans by another 10 bps, to 9.9
per cent.
Axis Bank ties up with Kochi Metro for debit card-cum-ticket.
ICICI Bank Limited, India’s largest private sector bank and Bangalore Metro Rail Corporation
Limited (BMRCL) announced the launch of the ‘ICICI Bank Unifare Bangalore Metro Card’.
o This card offers the commuters dual benefits of an ICICI Bank credit or debit card and
BMRCL’s smart card, called Namma Metro Smart Card. This is a co-branded card in
association with MasterCard.
Punjab National Bank, the state-owned lender opened 121 ATMs across the country to
commemorate its 121th foundation day.
The RBI has allowed banks to offer differential (slightly higher) interest rates, based on whether
their term deposits are with (or) without a premature withdrawal facility.
RBL Bank (formerly Ratnakar Bank) has launched India’s first golf-centric credit card.
o The card-based on the premium MasterCard World platform-has been launched in association
with the Indian Golf Union (IGU).
ATM and service provider NCR Corporation introduced a cloud and Android-based self-service
banking channel platform -“Kalpana” -for better security and simplier ATM transactions.
ICICI Bank in collaboration with Tech Mahindra launched a payment service ‘Tap-n-Pay’ based
on the near-field communications (NFC) technology, enabling customers make over-the-counter
payments without using cash.
Bharatiya Mahila Bank Ltd has entered into MoUs with New India Assurance Company Ltd and
Life Insurance Corporation of India to provide insurance cover to its accountholders.
World Bank established Pollution Management and Environmental Health program.
o The program was officially launched on Global Citizen 2015 Earth Day in Washington, D.C.
SEBI bars Reena Bansal from markets for one more year.
ICICI Bank ties with Emirates NBD to provide DirectRemit.
Bank of India partnered with insurance companies New India Assurance Co and Star Union Daiichi Life Insurance to roll out the government’s social security insurance schemes (PMSBY &
YES Bank board of directors approves hike in FII/ FPI limit to 74% from 49%.

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The Union Cabinet approved a proposal to amend the Negotiable Instruments Act so as to clarify
on jurisdictional issues for trying cheque bouncing cases.
o The main amendment is the stipulation that the offence of rejection/return of cheque under
section 138 of Negotiable Instruments Act will be enquired into and tried only by a Court
within whose local jurisdiction the bank branch of the payee, where the payee presents the
cheque for payment is situated.
ICICI becomes 1st Bank to have Smartwatch app.
o The new app, 'iWear by ICICI Bank', works on smart watches powered by Google’s
Android, Samsung’s Tizen platforms and also on Apple Watch.
RBI introduces early warning system to prevent financial frauds.
Bank of Baroda ties up with UAE Exchange for instant money transfer to NRI customers.
o The agreement allows customers can send money to their desired bank accounts in Bank of
Baroda in India, within minutes.
Bank of India will dilute its stake in Star Union Dai-ichi Life Insurance in the next few months.
o Note: Star Union Dai-ichi Life Insurance is a joint venture between Bank of India (48 per
cent stake), Union Bank of India (26 per cent) and Tokyo-based Dai-ichi Life Insurance (26
per cent).
YES Bank opens its first international office at Abu Dhabi.
RBI has directed banks to include ‘third gender’ in all forms/ applications prescribed by the central
bank or the banks themselves, wherein any gender classification is envisaged.
o Note: The Supreme Court directed the Centre and State Governments to grant legal
recognition of their gender identity such as male, female or as third gender.
Reliance Mutual Fund, the country's third largest asset management company (AMC), has tied up
with Samsung AMC, South Korea's largest asset manager to market their products in each other's
The Muthoot Group has announced a partnership with Wiki Technologies Inc of the US to open a
US-India payment corridor by leveraging the power of the WikiPay platform.
On recommendations of the Internal Working Group (IWG), RBI issued guidelines for Priority
Sector Lending (PSL) – Targets and Classification. The main goal behind this is to boost credit
flow to farmers, exports, education, small firms etc.
o RBI widened the definition of priority sector by including medium enterprises, small and
marginal farmers, social infrastructure and renewable energy while retaining the lending
target to the sector at 40%.
Corporation Bank and New India Assurance Co have signed a memorandum of understanding for
implementing the ‘Pradhan Mantri Suraksha Bima Yojana’.
o Under the scheme, the Aadhaar-linked savings bank account-holders of the bank will be
eligible for a cover of Rs. 2 lakh at a premium of Rs. 12 a year.
o The enrolment period for the scheme is from June 1 to May 31, 2016.
The National Bank for Agriculture and Rural Development (NABARD) has commenced the
process of starting farmers’ clubs for 2015-16 in the district for promoting economic progress of
agriculturists through technology integration and inculcation of best cultivation practices.
Banks have fixed the upper limit on withdrawals at micro ATMs at Rs 10,000 as part of rules
governing small transactions, especially under financial inclusion.

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o They will levy interchange fee of Rs. 2 for withdrawal up to Rs. 2,000 per transaction.
o The charge will rise to Rs 15 per withdrawal for amount between Rs. 5,001 to Rs. 10,000.
o Banks will not levy interchange fee for non-financial transactions at Micro ATMs.
State Bank of India ties up with the National Insurance Company (NICL) to offer non-life cover
to its savings account holders under the Pradhan Mantri Suraksha Bima Yojana (PMSBY).

May 2015

Karnataka Bank Ltd has entered into a memorandum of understanding with New India Assurance Co
Ltd to introduce Pradhan Mantri Suraksha Bima Yojna to its customers.
Govt to launch insurance, pension schemes on May 9 in Kolkata.
o Those schemes are, PMSBY (Pradhan Mantri Suraksha Bima Yojana), PMJJBY (Pradhan
Mantri Jeevan Jyoti Bima Yojana), APY (Atal Pension Yojana).
US based Nuspay International is bringing to India the first ever bank-account based tokenised
payment solution ‘Virtual Account’.
The Securities Appellate Tribunal (SAT) has served a notice to Insurance Regulatory and
Development Authority of India (IRDAI) in adjudication of a case relating to SBI Life, the life
insurance arm of SBI.
Federal Bank has tied up with New India Assurance Co. Ltd to implement Pradhan Mantri Suraksha
Bima Yojana, the personal accident insurance scheme announced by the Government for savings bank
account holders in the age group of 18 to 70 years.
o The Insurance scheme provides a cover of Rs. 2 lakh against death/permanent disability
caused due to accident, at an annual premium of Rs. 12.
State Bank of Hyderabad had entered into a memorandum of understanding with National Insurance
Company Limited for the implementation of the new insurance scheme, Pradhan Mantri Suraksha
Bima Yojana (PMSBY).
o The scheme is available for the public across all the 1821 branches of the Bank at a cost of
Rs. 12 per policy per year.
In a first, the Securities Appellate Tribunal (SAT) admitted a petition filed by insurance company SBI
Life against its regulator IRDAI and fixed the next hearing on the matter to July 9.
o SBI Life has dragged IRDAI (Insurance Regulatory and Development Authority of India) to
the SAT challenging the Rs. 275 crore penalty imposed on it by the regulator. This is the first
that the SAT has admitted a petition against the IRDAI after the new Insurance Act came in
force earlier this year.
o SAT presiding officer JP Devadhar
Axis Bank launches Ping Pay to enable funds transfer across all social networking platforms
To help lenders deal with defaulting borrowers, Securities and Exchange Board of India (Sebi) has
notified new norms for banks to convert their debt into equity in distressed companies — a move that
might lead to a sharp rise in restructuring of bank loans.
MoneyGram is ready to handle remittances through electronic modes in India as soon as the
government allows such transactions through a series of electronic modes such as online, ATM and
phone banking.

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Bad loans of the banking system have risen alarmingly in fiscal year 2015 due to continued economic
slowdown, according to the Reserve Bank of India.
The Union Cabinet approved operationalisation of three Centre-sponsored insurance and pension
schemes - Atal Pension Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana and Pradhan Mantri
Suraksha Bima Yojana - in all States and Union Territories.
o The Pradhan Mantri Suraksha Bima Yojana provides insurance against accidental death and
disability at a premium of Rs. 12 per annum.
 The risk coverage for accidental death and full disability is Rs. 2 lakh while for partial
disability the amount is Rs. 1 lakh.
o The Pradhan Mantri Jeevan Jyoti Bima Yojana provides life insurance cover of Rs. 2 lakh for
death at an annual premium of Rs. 330 while Atal Pension Yojana is a pension scheme for
old-age income security.
The Cabinet Committee on Economic Affairs also approved a modification in the Mega Food Park
scheme to streamline its implementation.
The Centre's new appointment norms for public sector bank chiefs - capping the age at 55 years and
mandatory three-year board level experience - has come under judicial scrutiny with the Supreme Court.
HDFC has emerged the only Indian company among the world’s 10 biggest consumer financial
services firms, after giants like American Express, Visa and Mastercard as per Forbes’ annual
The RBI put in place a new framework to check loan fraud including by way of early warning signals
at banks and red flagging of accounts, while swindlers will have no access to further banking finance.
The National Payments Corporation of India (NPCI) has cut the switching fee it charges banks for
processing inter-bank ATM transactions by five paise to 45 paise a transaction with effect from May 1.
The Reserve Bank of India has advised banks that with effect from September 1, 2015, all new cards
— debit and credit, domestic and international — issued by them should be EMV (Europay, MasterCard,
and Visa) chip- and pin-based cards.
The Singaporean lender DBS became the first foreign bank to seek the Reserve Bank's permission to
set up a local subsidiary.
Banks' bad loans to go up by Rs. 60,000 crore: Crisil.
Federal Bank offers Akshaya Gold a free insurance on gold loans.
To ensure undivided attention in resolving customer complaints and to further boost the quality of
customer service, the Reserve Bank of India has advised all public sector banks and some private sector
and foreign banks to appoint an internal ombudsman.
o The internal ombudsman will be a forum for bank customers to resolve customer complaints
before approaching the Banking Ombudsman.
RBI relaxes 2-factor authentication for payments up to Rs. 2,000 for NFC.
State Bank of India joined its private sector rivals to launch SBIinTouch card , a contactless credit and
debit card using latest near field technology (NFC).
o Note: ICICI Bank if first to launch contact less cards.
In the first major downgrade for Indian markets in the past one year, global brokerage HSBC changed
its stance on the country to “underweight”, saying corporate earnings may remain muted, monsoon
could be weak and odds are against further rate cuts.

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The Reserve Bank is planning to set up an information technology wing to face the rising challenges
coming from the cyber world.
Canara Bank, a public sector bank, has signed a Memorandum of Understanding (MoU) with VolvoEicher Commercial Vehicles Ltd (VECV) for financing vocational education loans.
Govt appoints Arun Shrivastava as MD and CEO of Syndicate Bank.
State Bank of India (SBI) has decided to separately auction distressed properties under its hold from next
o The bank has also decided to hold such e-auctions in the middle of the last month of every
ICICI Bank, India's largest private sector bank has launched its first branch in China.
o The Shanghai branch was inaugurated by Prime Minister Narendra Modi.
State Bank of India (SBI) has created a separate company, SBI Foundation, to carry out its massive
CSR initiatives and hopes to get it “running” from July.
HDFC Bank, the country’s second largest private lender, launched medical benefits prepaid card for
corporates to disburse medical benefits to their employees. (partnered with Apollo Hospitals)
Corporation Bank has dropped plans to take over the assets and liabilities of the ailing Maharashtrabased Rupee Co-operative bank.
o The 100-year-old Rupee Bank, India’s oldest co-operative bank, operates 36 branches
across Maharashtra, and has accumulated losses of Rs. 652 crore.
HDFC Bank hikes e-funds transfer charges.
o HDFC Bank customers will now have to pay almost 43 percent more for sending up to Rs.
10,000 using the instant real time inter-bank electronic fund transfer service — Immediate
Payment Service (IMPS).
State Bank of India launched an online facility for Overdraft against Fixed Deposit, whereby customers
holding fixed deposits in a single name can avail of up to 90 per cent of the FD amount as an overdraft to
meet emergency and other needs.
IDBI Bank has decided to roll out e-huts to connect with the rural populace.
IndusInd Bank inks pact with payment processing company Worldpay to offer acquiring services in
UAE Exchange India is to launch e-KYC authentication for all its financial transactions linking them
with Aadhaar.
Latest e-commerce and surge in online payments, State Bank of India has partnered with global ecommerce firm Amazon to serve its customers and small businesses.
SBI Partners With PayPal; Users Can Now Purchase Products From Overseas E-tailers.
o SBI had also partnered with Amazon to develop frictionless payments, commerce solutions
for customers and small businesses and building customer trust.
Meghalaya achieves 100% inclusion in Jan Dhan Yojana.
SBI inks pact with Snapdeal, PayPal to assist small businesses.
o The MoU with Snapdeal is for seller financing schemes under the e-commerce major’s
Capital Assist Program.
o In the case of PayPal, the partnership will promote cross-border trade and payments helping
especially the small and medium enterprises.
National Payments Corp gets nod to tie up with China UnionPay.

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Government relaxes FDI norms for NRIs, PIOs, OCI.
o Investments by non-resident Indians (NRIs), overseas citizens of India (OCIs) and persons of
Indian origin (PIOs) will now be treated as domestic investment, the government said. They
will not be allowed to repatriate the money overseas.
The Reserve Bank of India (RBI) said Indian companies, while raising rupee loans from foreign
investors, can swap their currency risk with a bank in the overseas market itself instead of approaching
Indian banks.
Exim Bank to set up subsidiary to push investments in CLMV nations.
Six of the world’s biggest banks will pay $5.8 billion and five of them agreed to plead guilty to charges
tied to a currency-rigging probe as they seek to wind down almost half a decade of enforcement actions.
o Citicorp, JPMorgan Chase & Co., Barclays Plc and Royal Bank of Scotland Plc agreed to
plead guilty to felony charges of conspiring to manipulate the price of US dollars and euros in
settlements with the Justice Department announced in Washington.
Bank of India tied up with MasterCard to launch three new cards and also two new banking solutions
for its card holders.
o New cards: The bank launched Business Debit MasterCard, Platinum Credit MasterCard and
International Travel MasterCard to improve customer’s payment experiences.
o New banking solutions: It will also offer two banking solutions- In Control for spend
management and MasterCard rewards program for its customers.
Government officials meet to discuss proposals to shut down some loss-making state-owned companies,
risking a conflict with powerful trade unions.
o Some of them, including Oil and Natural Gas Corporation and Steel Authority of India are
successful, but there are dozens more that have been bleeding cash for decades and kept
afloat by budgetary support each year.
State-owned United Bank of India has become the first of the 17 lenders to publicly admit that it no
longer expects to recover its dues from the beleaguered Kingfisher Airlines Ltd.
Salaries and allowances of bank employees will increase by 15 per cent after bank unions and industry
body Indian Banks Association (IBA) signed a wage deal.
o The wage settlement also includes a medical insurance scheme for the families of employees
and additional holidays on the second and fourth Saturdays of a month. The first and third
Saturdays will be regular working days.
ICICI bank launches voice password facility for users.
o This service will facilitate its customers to make transactions using their voice rather than
using traditional means of authentication like entering id and password.
ANZ Bank will open two more branches in India.
o The two branches would be opened at Gurgaon and Bangalore.
o The bank opened its first branch in India at Mumbai four years ago.
RBI has issued draft guidelines on mobility cards that will allow you to travel without cash in metros,
buses and taxis carrying prepaid cards with value up to Rs. 2,000.
State Bank of India chief Arundhati Bhattacharya (at 30) and ICICI Bank Managing Director
Chanda Kochhar (at 35) figure in the top 100 powerful women list by Forbes.
Officer-fathers in the banking sector will now be officially entitled to paternal leave.

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o With effect from June 1, 2015, an officer with less than two surviving children will be
eligible for 15 days’ paternity leave during his wife’s confinement.
Naresh Takkar, MD and CEO of rating agency ICRA, has been appointed member of the External
Advisory Committee (EAC) of the Reserve Bank of India that is evaluating applications for payments
RBI released Draft Guidelines on Net Stable Funding Ratio for Banks.
o This Draft Guidelines on Net Stable Funding Ratio (NSFR) under Basel III Framework on
Liquidity Standards for banks.
The Reserve Bank proposed to make Net Stable Funding Ratio (NSFR) applicable to all banks in India
from 1 January 2018.
o The objective of NSFR is to ensure that banks maintain a stable funding profile in relation to
their assets and off-balance sheet activities.
Finance Minister Arun Jaitley inaugurated New Bank Note Paper Line unit of 6000 metric tonne
capacity at Security Paper Mill in Hoshangabad, Madhya Pradesh.
State Bank of India launched Online Customer Acquisition Solution (OCAS), an online platform to
apply for home loans, car loans, education loans and personal loans.
Federal Bank launches Scan N Pay, a mobile-based payment app for making any kind of payments.
Mobile money service provider YTS Solutions introduced MoSa Pay - a mobile based online salary
disbursement solution targeted at small and medium enterprises (SMEs).
SBI launches 'Her Ghar Her Car' loyalty scheme.
o After the ''Her Ghar'' loan product, country’s largest bank State Bank of India launched ‘Her
Ghar Her Car’ loyalty scheme offering reduced interest on car loans.
o Under this scheme, ‘Her Ghar’ borrowers can go in for a ‘Her Car’ loan at reduced rates of
10 percent per annum... Her Ghar Her Car is an addition to products available with SBI
wherein concession in rates.
SBI’s mCASH for money transfer.
o State Bank of India customers can transfer money to anyone without knowing their Bank
account details irrespective of whether the recipient bank is SBI or not.

June 2015

IRDAI removes cap on business from one insurer for banks.
To reduce cash transactions in the economy and boost the usage of cards and point of sales (PoS)
terminals, the Union finance ministry and Reserve Bank of India (RBI) have set up a committee to
look at ways to encourage use of plastic money.
o The committee has representatives from National Payments Corporation of India, State Bank
of India and ICICI Bank.
HDFC Bank has decided to discontinue issuing slips after cash withdrawals at ATMs and will alert
the customer through SMSes.
MMP Mobi Wallet Payment Systems, a subsidiary and payments arm of Tata Teleservices, has
announced a tie-up with non-banking finance company (NBFC) Manappuram Finance to provide
alternative physical and online repayment options to its customers.

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Hannover Re - the world’s third largest reinsurance company - has decided to set up a branch in
India, its visiting Chairman Ulrich Wallin has said.
The RBI has doubled the limits for individuals and other entities for making foreign currency
remittances under current and capital account transactions to $2,50,000 a year.
The RBI allowed cross holding in long-term infrastructure bonds.
o With this, now banks would be able to cross hold these bonds among themselves for
financing infrastructure and affordable housing loans, which earlier was not permitted.
Axis Bank has launched a new mobile application that will allow its customers to book lockers, saving
them many visits to bank branches.
Deutsche Bank will launch three innovation labs this year, partnering with big development firms to
speed creation of financial technology for its own uses and will spend up to 1 billion euro on digital
development in the next 5 years.
Standard & Poor's has lowered Bank of India's Standalone Credit Profile (SACP) to 'BB+' from 'BBB'.
State Bank would be selling its distressed assets through an online auction on June 12.
Citibank offers ''childcare allowance'' of upto Rs 1.32 lakh above salary.
Kotak Mahindra Bank and ING Bank have joined hands for exploring opportunities arising from
cross-border business, investment and trade flows across various regions, including Europe.
Deutsche Bank appointed John Cryan as its new CEO after co-chief executives Anshu Jain and
Juergen Fitschen resigned following criticism from investors.
Yes Bank reappoints Rana Kapoor as CEO.
RBI has permitted banks to take control of 51 per cent of stake in a company that has failed to
recover financial health even after a period of financial restructuring.
SBI Life Insurance introduced 'Connect Life', a tablet-based service to digitise the entire
documentation process.
Banks’ bad loans may increase to 5.9% in 2015-16: ICRA.
RBI seeks comments on Draft Framework on Issuance of Rupee linked Bonds Overseas before final
Exim Bank has paid Rs. 433 crore to the Centre towards balance of net profit transferred to the central
exchequer for 2014-15. For the financial year 2014-15, Exim Bank had reported a net profit of Rs. 726
The Reserve Bank allowed non-resident Indians (NRIs) to invest in chit funds on non-repatriation basis
without any ceiling, a move that will encourage flow of capital into the country.
The United Bank of India (UBI) launched an online Saving Bank account opening facility.
RBI extends ECB window for airlines, affordable housing projects till March 2016.
HDFC Bank rolled out an App (PayZapp) that would combine the features of a bank branch and
hundreds of e-commerce platforms which could protect consumers' wallet and ensure that the bank
retains its dominance in the retail segment.
Bank of Baroda, Eastern Zone, has opened a new e-Lobby at Kestopur on the northern fringes of
ICICI Bank is set to engage turnaround experts to help it recover stressed loans of about Rs 40,000 crore
across nearly 100 accounts.

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The State Bank of India has offered a total processing fee waiver for shifting to it from other lenders
for the home loan.
The RBI allowed Bills for postpaid mobile service, piped gas and water supply can now be submitted as
proof of address for opening account with banks or other financial institutions.
In a first for India's PSU banks, candidates from private sector banks have been shortlisted for the post of
CEO and MD at five large banks including PNB, BOB and Canara Bank.
Tata Communications Payment Solutions ties up with Fino to expand reach of white label ATMs.
RBI issued final guidelines for 6-year and 13-year Interest Rate Futures.
Hannover Re, the world’s third largest reinsurer, has decided to offer reinsurance cover for the
Pradhan Mantri Suraksha Bima Yojana (PMSBY) to encourage insurance companies to participate
in the scheme.
Skoch Consultancy Services, has conferred Skoch Order-of-Merit Award on Andhra Pradesh
Grameena Vikas Bank (APGVB) for qualifying among India’s best in two areas for 2014-15 financial inclusion leveraging bio-metric technology and business leadership.
India Post, which has started issuing personalised debit cards to its savings account holders, is planning
to issue 5 lakh new debit cards over the next two months.
Western Union tied up with private lender Yes Bank for international direct-to-bank transfers. This will
facilitate money transfers to bank accounts in India, through the NEFT as well as IMPS clearing
HDFC Bank launched a mobile phone application, PayZapp, for online payments and money transfer.
Odisha State Co-op Bank launches Bank on Wheels to help farmers get loans on their doorstep.
HDFC Bank launches 10 second personal loan disbursement scheme.
China’s Cabinet allowed Bank of Communications (BoCom) to introduce more private shareholding.
To overcome the knowledge and experience gap arising from the retirement of senior officers, State
Bank of India has drawn up a comprehensive policy to engage former officers.
Bandhan Financial Services gets RBI nod to set up bank; to begin operations from August 23.
The soon-to-be-turned bank IDFC has partnered with payments technology and transactions processing
firm FSS (Financial Software & Systems) to provide end-to-end payments technology support for its
upcoming banking operations this year.
HDFC Bank partners with Manipal Global to set up the Leadership Academy for Branches.
The Bombay High Court held that the right to nominate Board of directors of private sector lender Yes
Bank has to exercise jointly by the promoters and not individually.
Basel panel says Indian banks largely compliant on liquidity standards : RBI.
State Bank of India has launched SBI e-forex, an Internet-based platform that enables customers to
book their foreign exchange transactions online.
RuPay, India's own card payment system floated by the National Payment Corporation of India (NPCI)
would roll out RuPay Credit cards from next year.
As many as 11 candidates have been shortlisted by a panel headed by RBI Governor Raghuram
Rajan for the post of CEO and MD of five large public sector banks, including PNB, BoB and Canara

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Multilateral financier International Finance Corporation (IFC) and the Singapore government-backed
GIC are likely to raise their investments in Bandhan after it got the final banking licence by the Reserve
Bank of India.
o The global investors may pump in fresh Rs. 500 crore equity, making it their second round of
stake buy in the company this fiscal.
Bandhan’s new bank to start operations from 23 August.
o Note: Bandhan is India's first microfinance company to transform into a bank.
SBI names Praveen Gupta as new MD and CEO of SBI Capital Markets.
o Praveen Gupta replaces Rajnish Kumar, who has been elevated as managing director Compliance and Risk, State Bank of India, according to a press statement released by SBI.
Global rating agency Moody's has affirmed State Bank of India's (SBI) local and foreign currency
deposit ratings at Baa3/P-3.
Payment company iKaaz, which specializes in near-field communication (NFC), has developed a lowcost point-of-sale (PoS) terminal which enables customers to 'tap and pay' even without an NFC-enabled
card or phone.
Nearly five lakh households in rural and semiurban areas could benefit as the Asian Development Bank's
(ADB) Chennai-based partner IFMR Capital is planning to release Rs. 400-450 crore credit to
microfinance institutions (MFIs) in the second series of disbursement after a gap of about three years.
HDFC Bank launches 'Trade Finance on Mobile' , a mobile app for trade finance transactions.
Axis Bank launches 'Secure+' debit card.
Axis Bank has also launched ‘Total Control’, a unique platform that empowers debit card customers to
self-manage and customise their card features that allows customers to modify limits, choose between
domestic or international usage, switch on or off card and even replace the card through a mobile
application or internet or phone banking facility.
Barclays, Citigroup, Deutsche Bank, HSBC and SBI Capital Markets are being tipped to lead
NTPC’s debut issuance of offshore rupee-linked bonds.
The Competition Commission has rejected allegations of unfair business practices made against
Standard Chartered Bank with respect to credit cards and loan facilities offered by it.
The RBI decided to allow Authorized Dealer Category - I (AD Category - I) Banks to borrow foreign
currency from International/Multinational Financial Institutions (IFIs/ MFIs) without RBI prior
The Board of Financial Benchmarks India Private Limited (FBIL) decided to adopt FBIL overnight
Mumbai Inter-Bank Offer Rate (MIBOR).
RBI extended deadline for exchanging pre-2005 currency notes by 6 months.
o The Reserve Bank of India (RBI) extended the date to exchange pre-2005 bank notes till 31
December 2015.
Union Bank gets shareholders nod to raise up to Rs. 3,700 crore.
China has hosted the signing ceremony of the Asian Infrastructure Investment Bank (AIIB), a new
international financial institution set to rival the World Bank and Asian Development Bank.
Axis Bank becomes the first private bank to launch differential interest rate on fixed deposits, to
give customers a higher rate of return on their fixed deposit investment as compared to regular fixed
deposit rates.

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o The scheme ‘Fixed Deposit Plus’ is targeted at both Retail customers (Domestic & NRI) and
corporate customers who seek safe avenues to invest surplus money at higher rates. The
customers need to invest a minimum amount of Rs. 15 lakh at a single instance to enjoy a 10
bps higher rate of interest on their investment.
HDFC Bank launches '30-min auto', '15-min 2-wheeler' for which customers have to provide only
their biometric details.
National Payments Corporation of India (NPCI) will expand its shareholding base to 60 banks
from 10 at present, by inducting 50 more banks as shareholders, raising about Rs. 100 crore in the
NPCI partnered Japan’s payment card network JCB International, subsidiary of Japan’s JCB Co, for
payment cards issuance and acceptance.
Bank of Maharashtra and MUDRA Bank have signed an agreement to finance new entrepreneurs and
small businesses.

July 2015

Madras High Court has approved the Scheme of Arrangement (demerger) between IDFC and IDFC
In its series of digital initiatives and tie-ups, State Bank of India, country’s largest bank, partnered with
online travel company to capitalise on the business opportunities of the booming ecommerce and m-commerce ecosystem.
The World Bank cleared a $650 million loan for a huge freight rail corridor that will span 1,840 kms
(1,140 miles) between Ludhiana and Kolkata. Inc will launch its business loan program for small sellers later this year in eight more
countries including India, where credit is becoming a key factor in competing for new vendors and
grabbing market share.
o Until now, the e-retailer has offered the service only in the United States and Japan.
BSNL launched Speed Pay, a pre-paid card linked mobile wallet service which allows customers to
transfer cash, pay for services as well as withdraw cash of up to Rs. 1 lakh.
India has launched eMigrate system, an online registration system for foreign employers who seek to
recruit Indian workers, including nurses.
India's largest lender State Bank of India has launched “Project Tatkal”, an initiative to provide
doorstep services and expedite home loans application process.
Union Bank launches instant transfer service.
o Union Bank also launched its IMPS and other mobile banking initiatives.
Yes Bank has partnered with cloud service and business mobility provider Citrix to empower workforce
mobility and ensure faster rollout of new branches.
A $1 billion debt market investment of Deutsche Bank and others, financial regulators RBI and SEBI
are having a fresh look at the case to ensure compliance to their norms.
o Deutsche Bank’s Headquarters: Frankfurt, Germany.
Corporation Bank launched the MUDRA card based on the RuPay platform.
Kotak Mahindra Bank's proposal to raise foreign investment limit in the lender to 55 per cent was
cleared by the Foreign Investment Promotion Board (FIPB).

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Sriram Kalyanaraman appointed MD & CEO of National Housing Bank.
BRICS Central Banks Sign Forex Reserves Pool Pact.
o The five major emerging national economies, known by the acronym BRICS, were a step closer
to setting up a $100 billion pool of mutual reserves by signing an ''operational agreement''.
Axis Bank launched 'Touch ID' - a one touch authentication for doing transactions through its mobile
app using Apple iPhone 5s and above.
ICICI Bank has created a dedicated payments gateway for the mobile banking transaction which will
enable much faster transactions for its customers.
To effectively deal with the problem of bad loans, SBI is in the process of introducing a system of early
warning signals to detect NPAs and take corrective action.
Government owned State Bank of India and second largest private bank HDFC Bank are most active
in addressing customer complaints and queries on social media while Yes Bank has the highest market
share of buzz on social media, says a report released by Simplify 360.
The Reserve Bank introduced Pre-paid Payment Instruments for Mass Transit System (PPI-MTS),
a new type of pre-paid instrument of up to Rs. 2,000 for Mass Transit Systems to facilitate migration
from cash-based payments to electronic ones.
The Reserve Bank of India announces in cases of acquisition/ transfer of control of non-banking
finance companies, parties to the transaction will need to give prior public notice and seek its approval.
Kolkata-based Bandhan Bank, set to start operations in August 23, announced its new board of directors.
It also unveiled the new logo – an image of the 'diya'.
o Ashok Kumar Lahiri, a former Chief Economic Advisor to the Centre, will be the Chairman.
o Chandra Shekhar Ghosh will be the MD and CEO of the bank. Both appointments are subject
to Reserve Bank of India approval.
State Bank of Travancore (SBT) has launched the 'SBT NRI Family Card', a prepaid card for
resident Indians – family member/ dependent/ acquaintance of NRIs.
Export-Import Bank of India (Exim Bank) has signed a multilateral agreement to cooperate with New
Development Bank (NDB) along with other member development banks of BRICS nations.
ICICI Lombard has introduced a ''Photo Quote'' feature on its mobile app “IL Insure”. The feature is
aimed at enhancing customers’ purchase experience.
SBI partners with
o The site '' offers end to end solutions to home loan seekers from getting the
customized quotes, comparison of the offers and submission of online application to SBI.
To ensure fair selection process in regional rural banks (RRB), the government said the Institute of
Banking Personnel Selection (IBPS) will handle all direct recruitments for these banks.
o IBPS will now handle all direct recruitments for RRBs in different posts/ scales including the
conduct of interviews and issue of final result.
The All-India Bank Officers Association (AIBOA), which claims to be the second largest union of
bank officers, urged the RBI to initiate immediate steps to merge Dhanalakshmi Bank with a
nationalized bank to avoid conflict of interests in managing the affairs of the bank by the board and top
E-commerce giants like Flipkart and eBay rope in NBFCs to woo sellers with easy loans.
Micro Units Development & Refinance Agency (MUDRA) Bank has disbursed Rs. 35 crore loan to
Satin Creditcare Network Ltd (SCNL).

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The Competition Commission of India (CCI) has imposed a total penalty of Rs. 671.05 crore on four
public sector insurance companies.
IndusInd Bank launched customer responsive service called QuickPay, allowing the bank customers to
send money instantly to their personal contacts and/or business parties through SMS, E-mail and social
media platforms.
o First to launch instant money transfer service: Bank of India.
The government sanctioned an additional Rs. 700 crore for the recapitalisation of weak regional rural
banks (RRBs) and extended the validity period for the fund infusion to next fiscal.
Reserve Bank asked the public not to write on the watermark window of banknotes as it bears an
important security feature which differentiates it from a fake note.
Reserve Bank of India (RBI) has constituted a committee to prepare a 5 year action plan to spread
the reach of financial services across country to unbanked population.
o The committee will be headed by RBI executive director Deepak Mohanty and comprise total of
14 members.
India has inked a financing agreement with World Bank (WB) to raise USD 250 million dollars
financial assistance for Andhra Pradesh Disaster Recovery Project (APDRP).
Reserve Bank of India has signed a special currency swap agreement with the Central Bank of Sri
Lanka (CBS).
o Under this agreement, Sri Lankan bank can draw up to 1.1 billion dollars for a maximum period
of 6 months.
State Bank of Hyderabad has launched its Android app, SBH Touch, a one stop mobile app for
various services and products of the bank.
Banks will report a credit card account as 'past due' to credit information companies or levy penal
charges, such as late payment charges only when it remains 'past due' for above three days, the RBI has
The RBI has permited co-operative banks, which are Core Banking Solution-enabled, to issue
ATM/ATM-cum-debit cards, in tie-up with a sponsor bank.
Oneline Communications, owner of Paytm, the country's largest mobile wallet, has asked Reserve Bank
of India (RBI) to hike the limit on money that can be kept in a mobile wallet to Rs. 25,000 from Rs.
The Reserve Bank of India has permitted banks without ATM network to issue debit cards in tie-up
with a bank that has its own network as it pushes for cashless transactions.
Tata Communications Payment Solutions (TCPS), engaged in while label ATM business with the
flagship product, Indicash, has launched three value-added services.
o card-to-card fund transfer.
o cheque book request.
o Account statement request.
Following the market leader SBI, Corporation Bank is planning to offer shares to its employees at a
discount, a move that would help them reward staff and raise capital.
BRICS bank launched in China.
o A new USD 100 billion bank floated by BRICS nations, including India, as an alternative to the
World Bank and IMF to boost infrastructure funding in the emerging economies and offer them
tailor-made services was launched.

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o President : K V Kamath
Non-resident Indians (NRIs) can invest in National Pension System (NPS) to get a social security
As many as 44 corporate borrowers had taken loans in excess of Rs. 5,000 crore each from public
sector banks as of March 2015.
The Finance Ministry has come up with a revised draft of the Indian Financial Code (IFC) and sought
stakeholders’ comments on the same by August 8.
Infrastructure financing firm IDFC Ltd has said the Reserve Bank of India has granted banking licence
to IDFC Bank for undertaking banking business in the country.
Non-banking finance company Fullerton India announced the receipt of housing finance licence from
National Housing Bank.
Union Government extended Interest Subvention Scheme (ISS) to Public Sector Banks (PSBs), private
sector commercial banks, rural regional banks (RRBs), cooperative banks and NABARD. It was
extended to ensure availability of crop loans of up to 3 lakh rupees to farmers at 7 per cent per annum.
Anand Krishnamurthy is the new MD and CEO of Catholic Syrian Bank (CSB) replacing Rakesh
Bhatia who had quit due to personal reason.
The Asian Development Bank (ADB) will extend a loan of $300 million to India for improving road
connectivity and increasing the domestic and regional trade along the North Bengal - North Eastern
Region (NER).
Private sector lender IndusInd Bank has completed the acquisition of the diamond and jewellery
financing business and related deposit portfolio of Royal Bank of Scotland (RBS).
Axis Bank signed a USD 200 million, seven-year bilateral loan agreement with the Asian
Development Bank.
Infrastructure Development Financing Company (IDFC). Ltd became second lender to enter the
banking sector since 2004, as the Reserve Bank of India granted Banking licence.
o Note : It was Yes Bank that got banking licence in 2004.
The Royal Bank of Scotland (RBS) has decided to sell its private banking business in India to Sanctum
Wealth Management, in line of its prior decision to exit the Indian market.
Kotak Mahindra Bank (KMB) launched a mobile banking app ‘Kotak Bharat’ aiming to provide
mobile banking services to customers in the remotest regions of India.
Reserve Bank of India (RBI) will soon issue 10 rupee denomination coins to commemorate
International Yoga Day which is being observed every year on 21st June.
In a move to get better returns, the Employees Provident Fund Organisation's (EPFO) has decided to
invest a part of the retirement fund corpus in the capital market, through Exchange-Traded Funds

August 2015

With continuous policy of front-loading development expenditure, the Centre’s fiscal deficit has
exceeded half of the Budget target during the first three months (April-June) of the current fiscal.
However, the good news is that tax collection has also seen good growth.
o Note : Fiscal deficit is the difference between the government’s income and expenditure.

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Projecting the country’s highways sector as a ''unique opportunity'' for investments, government has
rolled out projects worth US $93 billion, including the US $45 billion flagship road building
programme NHDP (National Highway Building Project).
HSBC India’s chairman Naina Lal Kidwai announced to launch 'green bonds' in India for raising
funds for investments in environmental projects.
IDFC Bank is set to start lending operations from October 1. The stage is set for this with the
Reserve Bank of India (RBI) granting IDFC Bank licence for undertaking banking business, said IDFC
in a notification to bourses.
o About IDFC Bank:
 Executive Director: Dr. Rajiv B. Lall.
 Headquarters: Mumbai.
United state Food and Drugs Administration (USFDA) has hiked its fees by 30 percent for new
generic drug applications.
o Earlier the fee for Abbreviated New Drug Applications (ANDAs) was 58,730 dollars and now has
risen by 30 per cent to 76,030 US dollars.
Lok Sabha has passed Negotiable Instruments (Amendment) Bill 2015 by a voice vote.
o The bill seeks to amend The Negotiable Instruments Act, 1881 in order to make cheque-bounce
filing of cases more convenient for check payees (person who receives the cheque).
Reserve Bank of India (RBI) has taken decision to allow banks to merge, shift or close branches in
urban areas on their own discretion.
The percentage of zero-balance accounts opened under the Pradhan Mantri Jan Dhan Yojana
(PMJDY) is coming down in Corporation Bank.
o About Pradhan Mantri Jan - Dhan Yojana:
 PMJDY is National Mission for Financial Inclusion to ensure access to financial services,
namely Banking Savings & Deposit Accounts, Remittance, Credit, Insurance, Pension in an
affordable manner.
 This scheme launched on August 28th 2014.
 Guinness World Records Recognises the Achievements made under PMJDY, Guinness World
Records Certificated as The most bank accounts opened in 1 week as a part of financial
inclusion campaign is 18,096,130.
The Insurance Regulatory and Development Authority of India (IRDAI) has imposed Rs. 85 lakh
penalty on Reliance Life Insurance Co Ltd.
o About IRDAI:
 Full Form: Insurance Regulatory and Development Authority of India.
 Chairman: T.S. Vijayan.
 Headquarters: Hyderabad.
India’s largest private sector lender Industrial Credit and Investment Corporation of India (ICICI)
Bank has launched 'ICICI Bank Saral-Rural Housing Loan' Scheme for weaker sections of society.
o About ICICI:
 Full Form: Industrial Credit and Investment Corporation of India.
 CEO: Chanda Kochhar.
 Founded: June 1994, Vadodara.
 Head Quarters: Mumbai.

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The National Bank for Agriculture and Rural Development (NABARD) has been accredited by the
United Nations Green Climate Fund (GCF) as an implementing entity for undertaking climate change
related projects in India.
o About NABARD
 NABARD is India’s specialised bank for Agriculture and Rural Development in India. RBI sold
its stake in NABARD to the Government of India, which now holds 99% stake.
 Established: 1982.
 Headquarters: Mumbai.
 Committee: Shivaraman Committee.
 Chairman: Harsh Kumar Bhanwala.
Government of India has approved the implementation of the Interest Subvention Scheme for the year
2015-16 for short term crop loans upto Rs 3 lakhs with the following stipulations:
IndusInd Bank has, in combination with the recent QIP issue, successfully raised Rs. 5,081 crore of
common equity through issuance of 6 crore new shares.
The government announced a seven-point action plan, Indradhanush to infuse professionalism and
fresh capital in to public sector banks.
Minister of State for Finance Jayant Sinha unveiled plan Indradhanush, which includes the
Government’s plan of infusing Rs.70,000 crore capital into banks over the next four years.
The government has announced that it had hired two professionals from the private sector P. S.
Jayakumar from VBHC Value Homes as the MD and CEO for Bank of Baroda and Rakesh Sharma from
Laxmi Vilas Bank as MD & CEO of Canara Bank.
The Union Government has launched a seven pronged plan called Indradhanush Mission to revamp
functioning of public sector banks (PSBs).
o It was launched by Union Finance Minister Arun Jaitley in New Delhi.
o The seven shades of Indradhanush mission include appointments, de-stressing PSBs,
capitalisation, empowerment, framework of accountability and governance reforms.
o Seven Shades:
1. Appointments: Selection of non-executive chairman in remaining 6 state owned PSBs till
November 2015. Appointing MD & CEO of two PSBs as early as possible.
2. Bank Board Bureau (BBB): It will be a body of ’eminent’ professionals to be selected within
6 months i.e. February 2015. It will become functional from Financial year 2016-17 i.e. form
1st April 2016.
3. Capitalisation: Infuse 25,000 crore rupees of capital into debt-laden banks in this fiscal in
phased manner. Out of this 20,000 crore rupees would be injected in August 2015. Rest 5,000
crore rupees will be performance based allocation to be allocated in the last quarter of 2016.
4. De-stressing PSBs: To develop vibrant debt market for PSBs in order to reduce lending
pressure on banks. Strengthen asset reconstruction of companies.
5. Empowerment: Provide greater flexibility in hiring of manpower in PSBs.
6. Framework of accountability: It will seek to streamline vigilance process for quick action in
case major frauds and also include connivance of staff.
7. Governance reforms in PSBs: Next Gyan Sangam (also known as the Banker’s Retreat) will
be held from 14 to 16 January 2016. Employee Stock Option Plan (ESOP) will be initiated for
top management.

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Union Government has decided to set up a Bank Board Bureau (BBB) to monitor key performance
indicators of two dozen public sector banks (PSBs).
Reserve Bank of India (RBI) suspends license of Seven non-banking finance companies (NBFCs).
The seven NBFCs whose licences were suspended are – Religare Finance, Artisans Micro Finance, Eden
Trade & Commerce, RCS Parivar Finance, Nott Investments, Dewra Stocks & Securities, Swetasree
Oxigen Services, a payment services provider, has designed a new “super PoS” (point-of-sale)
terminal to cater to the requirements of both merchants and banks.
Reliance Life Insurance Company (RLIC) has launched a new plan ‘Reliance Increasing Income
Insurance Plan’.
o This is a traditional non-participating plan that secures an assured source of monthly income to meet
the growing expenses and support the dreams and aspirations of the policyholder.
ICICI Bank launched ''Smart Vault'', a first-of-its-kind locker facility by a bank in India with latest
robotic technology.
State Bank of India launched a mobile wallet app, SBI Buddy, in collaboration with Accenture and
All India Bank Employees’ Association (AIBEA) urged the Centre to stop the policy of issuing
licences to private sector entities to form payments banks.
o AIBEA General Secretary : C.H. Venkatachalam
The Union Government issued norms for selection of Managing Directors (MDs) and Chief Executive
Officers (CEOs) in Mid and Small Public Sector Banks (PSBs).
R. Gandhi committee of RBI recommends conversion of UCBs into regular banks.
Banking giant State bank of India’s Chariman Arundhathi Bhattacharya has announced that SBI is
developing a low-cost model to compete with payments banks.
Bandhan Financial Services, a Micro Financial Institution (MFI), started operations as a Scheduled
Commercial Bank (SCB).
o Henceforth it will be called as Bandhan Bank.
o The banking services were inaugurated by the Union Finance Minister Arun Jaitley in Kolkata.
o Note: With this, Bandhan became the first micro finance company in the country to start
operations as a full-fledged commercial bank.
 It is also the first commercial bank from Eastern India to get RBI clearance since independence.
Managing Director and Founder of the Bank : Chandra Sekhar Ghosh.
YES Bank co-founder Rana Kapoor has got approval from the Reserve Bank of India for his reappointment as MD and CEO of the bank for 3 years.
o This will be with effect from September 1, 2015.
ICICI Bank has announced the launch of the country’s first ‘mortgage guarantee’ backed home
loans for first time borrowers in the affordable housing segment.
o 'ICICI Bank Extraa Home Loans' will allow a borrower to increase the loan amount by up to 20 per
cent of the original loan amount and also the option to extend the repayment period up to 67 years of
IMGC, a joint venture between ICICI bank and NHB launched.

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The Reserve Bank of India has enhanced the limit for cash withdrawal at Point of Sale (for debit
cards and open system prepaid cards issued by banks in India) from Rs. 1,000 to Rs. 2,000 per day in
Tier III to VI centres with immediate effect.
The Reserve Bank of India (RBI) said payment systems will not be operated on second and fourth
Saturdays but would operate for full day on working Saturdays.
Andhra Bank has launched Mudra Card under the Pradhan Mantri MUDRA Yojana Scheme.
o Note: The maximum loan under the MUDRA card it Rs. 10 lakhs.
Payments banks can annually free up a whopping Rs. 14 trillion in incremental credit for the fundstarved infrastructure sector, says a SBI Research report.
Indian Bank has launched IndPay, a mobile application service that enables its customers to operate
bank account from anywhere, anytime.
HDFC Bank, the country’s second largest private bank, has cut its base rate or minimum lending rate
by 35 basis points to 9.35 per cent effective September 1.
o The new base rate will be the lowest lending rate in the banking industry. HDFC Bank had last cut
its base rate by 15 basis points to 9.7 per cent.
o At present, the base rate of the country’s largest lender State Bank of India and ICICI Bank, the
country’s largest private bank, stands at 9.7 per cent each.
Reserve Bank of India designated State Bank of India and ICICI Bank as Domestic Systemically
Important Banks (D-SIBs).

September 2015

ICICI Lombard General Insurance has tied up with Catholic Syrian Bank (CSB) for sale of its
products through 431 branches of the bank.
Indian Overseas Bank has launched Rupay MUDRA Debit Card under the Pradhan Mantri MUDRA
Yojna, targeting the micro, small and medium enterprises.
o Note: first bank to launch MUDRA Card is Corporation Bank.
In a fresh setback to the beleaguered Sahara India Pariwar, the Reserve Bank of India (RBI) has
cancelled the license of its holding company Sahara India Financial Corporation Limited (SIFCL).
Reserve Bank of India (RBI) has decided to issue coins of 5 rupees denomination to commemorate
golden jubilee year of Indo-Pak War 1965.
o These coins will be issued under in The Coinage Act, 2011 and will be considered as legal a tender.
The government set a target of achieving 100 per cent literacy in villages adopted under the Sansad
Adarsh Gram Yojana by March 2016.
Doha Bank has tied up with the Anil Ambani-led Reliance Group to generate business opportunities in
the Gulf Cooperation Council nations and India.
Bank of India, has started a fraud risk management (FRM) solution for all its card-related
A new numbering system and seven new security features will be incorporated in all currency notes,
especially in high denomination Rs. 1,000 and Rs. 500 notes, in order to check the menace of Fake
Indian Currency Notes (FICN).
Banking services hit as PSU banks, except SBI, go on strike.

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The National Payments Corporation of India (NPCI), the umbrella organisation for all retail payment
systems in the country, has initiated a first-of-its-kind 'e-Payments Literacy Workshop' in West
Federal Bank has taken the digital route to market its account opening mobile app FedBook Selfie.
The Reserve Bank of India (RBI) proposed a new methodology to calculate Base Rate (Base Rate).
o Method: It is based on marginal cost of funds methodology.
RBI's new draft guidelines on calculating base rate on marginal cost of funds will significantly impact
profitability of banks and could hit them with a one-time Rs. 20,000 crore in profit, as per ratings firm
The Union Cabinet has allowed 100 percent foreign direct investment (FDI) under the automatic route
for white label ATM operations (WLAO).
Federal Bank has drawn up a '4D' strategy to grow its business over the next three years, according to
Ashutosh Khajuria, Executive Director.
The Central Government has nominated Anjuly Chib Duggal, Secretary, Department of Financial
Services, Ministry of Finance, as a Director on the Central Board of Directors of the Reserve Bank of
The government gave its ex-post-facto approval to Rs. 800 crore capital infusion made in the Export
Import Bank of India (EXIM Bank).
o About EXIM Bank :
 Headquarters: Mumbai
 Chairman: Yaduvendra Mathur
Rakesh Sharma took over as Managing Director and CEO of Canara Bank.
o About Canara Bank:
 Tagline: Together We Can
 Headquarters: Bangalore
 CEO: Rakesh Sharma
In a bid to help farmers increase soil productivity by appropriate use of fertilisers, Bank of
Maharashtra has launched a soil and water health card which will help them ascertain the nutrient
status of their farm lands.
o About BoM:
 Tagline: One family one bank
 Headquarters: Pune
 CEO: Sushil Muhnot
Axis Bank has rolled out a full-fledged mobile app 'Lime' that enables shopping, making payments and
banking under one window.
o About AXIS Bank:
 CEO: Shikha Sharma
 Headquarters: Mumbai
 Tagline: Khayaal aapka
On government's decision to infuse capital into Corporation Bank to the tune of Rs. 857 crore, the stateowned bank has received a letter from LIC expressing interest to infuse Rs. 143 crore into it by way of
preferential equity.

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o The matter will be placed for shareholders approval in its forthcoming annual general meeting on
September 28.
o LIC's stake in the bank as per the share-holding will decrease from the present 22.54 to 21.22 per
o About Corporation Bank:
 Tagline: A Premier Public Sector Bank
 Headquarters: Mangalore
 CEO: Shri Sadhu Ram Bansal
Paytm plans to launch India’s first payments bank by the end of this financial year and is counting on
its mobile wallet experience to give it a clear advantage over established business houses that will be its
main rivals.
The Reserve Bank of India has signed an Memorandum of Understanding (MoU) on 'Supervisory
Cooperation and Exchange of Supervisory Information' with the Nepal Rastra Bank (NRB).
o Random Facts
 The RBI was established by way of the Reserve Bank of India Act, 1934.
 Coins in India are presently being issued in denominations of 50 paise, one rupee, two rupees,
five rupees and ten rupees. Coins up to 50 paise are called ‘small coins’ and coins of Rupee one
and above are called ‘Rupee Coins’.
 Banknotes in India are currently being issued in the denomination of 10, 20, 50, 100 500, and
1000. These notes are called banknotes as they are issued by the Reserve Bank of India
(Reserve Bank)
 The Reserve Bank can also issue banknotes in the denominations of five thousand rupees and
ten thousand rupees, or any other denomination that the Central Government may specify.
 There cannot be banknotes in denominations higher than ten thousand rupees in terms of the
current provisions of the Reserve Bank of India Act, 1934.
 Coins can be issued up to the denomination of Rs. 1000 in terms of The Coinage Act, 2011.
 RBI was established on the recommendation of Hilton-Young Commission.
 Panther and Palm Tree is the emblem of RBI.
 The first woman Deputy Governor of RBI is Kishori Jayendra Udeshi.
Gujarat has come out on top in the World Bank’s first ever ranking of States on the ease of doing
business in India.
The Reserve Bank of India has selected 10 companies to set up small banks aimed at giving loans to
those who struggle to get finance from traditional banks, including farmers and small businesses.
o The name of the applicants that have been granted the licence include,
(1) Au Financiers
(2) Capital Local Area Bank
(3) Disha Microfin
(4) Equitas Holdings
(5) ESAF Microfinance and Investments
(6) Janalakshmi Financial Services
(7) RGVN (North East) Microfinance
(8) Suryoday Micro Finance
(9) Ujjivan Financial Services

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Utkarsh Micro Finance.
Bandhan Bank, which began operations from August 23 onwards, has brought on board five lakh new
o About Bhandhan Bank
 Head Quarters: Kolkata
 CEO and Founder: Chandra Shekhar Ghosh
Esaf Microfinance, the only aspirant from Kerala to be granted in-principle clearance to become a small
finance bank, hopes to 'meet financial requirements of the poor by advancing loans of higher value'.
Integrated infrastructure finance company IDFC has been granted the regulatory approval by the RBI to
utilise Rs. 2,500 crore non-distributable statutory reserves.
o About IDFC
 Head Quarters: Chennai
 Founded: 1997, Chennai
 Chairman & MD: Dr. Rajiv B. Lall
The Bank of Baroda has been conferred the first prize under the All India Rajbhasha Kirti
Puraskar Scheme of Government of India.
The Asian Development Bank (ADB) lowered growth projections for India for the current fiscal to 7.4
per cent, from the 7.8 per cent earlier, citing weak monsoon, poor external demand and inability of the
government to push economic reforms in Parliament.
o About Asian Development Bank:
 Founded: August 22, 1966
 Headquarters: Manila, Philippines
 Membership: 67 Countries
 President: Takehiko Nakao
RBI announced cancelation of NBFC licence of Sahara India Financial Corp Ltd, the group, the decision
was as per "a mutually decided arrangement" between the central bank and the company.
Capital market regulator Securities and Exchange Board of India (SEBI) has imposed a penalty of Rs.
7,269 crore on property developer PACL and four of its directors for not complying with rules on
selling investment products to public.
o About SEBI
o Founded: 12 April 1992
o Headquarters: Mumbai, Maharashtra
o President: Upendra kumar Sinha
The much-awaited new Rs. 1 notes have finally reached banks for distribution. The Reserve Bank of
India (RBI) sent the notes to various public sector banks a couple of days ago through its various
regional offices.
o About One Rupee Note:
 It bears the signature of Finance Secretary
 Present Finance Secretary: Ratan Watal
In order to encourage overseas funding, RBI has proposed to allow domestic companies to borrow
money from pension funds, Sovereign wealth funds (SWFs) and insurance funds as part of the ECBs.
Public sector banks will organise mega credit campaigns across the country to give a push to the
Pradhan Mantri Mudra Yojana (PMMY).

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o PMMY loans fall into three categories
 Shishu (up to Rs. 50,000)
 Kishore (between Rs. 50,000 – Rs. 5 lakh)
 Tarun (between Rs. 5 lakh to Rs. 10 lakh).
The Reserve Bank of India has allowed banks to process and settle import and export related payments
facilitated by online payment gateway service providers.
o RBI has put a cap of $2,000 on import and $10,000 on export of goods and software as allowed
under the foreign trade policy.
The government has firmed up plans to bring down its holding in IDBI Bank to 49 per cent, marking a
big bang start to its commitment to reform state-run banks.
New India Assurance (NIA), the largest non-life insurer in the country, has charted out its global
expansion plans that include areas like Asia, North America and Africa.
The Government of India has signed a loan agreement with Asian Development Bank (ADB) for US $
123.51 million for upgrading Tourism Infrastructure and Services in States of Punjab, Uttarakhand and
Himachal Pradesh.
o About ADB
 Founded : August 22, 1966
 Headquarters : Manila, Philippines
 President : Tekehiko Nakao
RBI’s fourth Bi-monthly Policy Review Highlights :

Reserve Rates
Policy Rates

Bank Rate

Current Rates (in Previous
%) as on 29 Rates (in %) as on
June 2
Repo 5.75


Change (basis)


o The fifth bi-monthly monetary policy statement will be announced on December 1, 2015.
o Cuts interest rate by 0.5 per cent to boost economy.
o Repo rate adjusted to 6.75 per cent, lowest in four-years.
o CRR remains unchanged at 4 per cent.
o Tentative economic recovery underway, far from robust.
o Growth likely to pick up in later part of this fiscal.
 Background of Bi-monthly policy:
o On the recommendation of the Urjit Patel Committee RBI adopted Bi-monthly policy and inflation
o The First Bi-monthly Monetary Policy Statement for 2014-15 on April 1.
Markets regulator SEBI has allowed Alternative Investment Funds and Venture Capital Funds to
invest up to 25 per cent of their investible funds in foreign companies having ‘Indian connection’.
o About SEBI

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Formed : 12 April 1992
Chairman : Upendra Kumar Sinha,
Headquarters : Mumbai, Maharashtra

October 2015

Rajiv Lall is going to take charge as MD & CEO of IDFC Bank
 About IDFC Bank :
 Founded : 1997 (Chennai)
 Headquarters : Chennai, India
 CEO : Rajiv Lall
The Asian Development Bank (ADB) will provide $120 million loan to upgrade the IndiaBangladesh electricity network.
 About ADB
 Formation : 19 December 1966
 Headquarters : Metro Manila,Philippines
 President : Takehiko Nakao
ICICI Bank has become the first institution worldwide to launch mVisa – a card-less and deviceless solution the payments company is betting on in the mobile space.
 About ICICI bank
 Full form : Industrial Credit and Investment Corporation of India (ICICI)
 Formation : 1994
 Headquarters : Vadodara, Gujarat
 MD & CEO : Ms.Chanda Kochhar
Mortgage lender HDFC has raised about Rs 10,000 crore through mix of warrants and nonconvertible debentures to qualified institutional investors.
HDFC was ranked 45th on the list of top 50 Banks in the world in terms of their market
State Bank of Travancore (SBT) has embarked on a ‘bank wapsi’ programme to bring back
customers who have walked away but still retain goodwill for the bank.
Rating Agency Crisil downgraded debt worth Rs 2.4 lakh crore in the first six months of financial
year 2015-2016. Of this debt, 90 per cent is owed by firms from either investment-linked or
commodity sectors.
UCO Bank registered the highest increase in gross Non-Performing Assets (NPAs) in percentage
terms against total loans in the 2014-15 fiscal year. With this, UCO Bank became the worst
performer among the other public sector banks.
 The UCO Bank was followed by Indian Overseas Bank (IOB) and Bank of Maharashtra
(BoM) with their gross NPA rising to 8.30 percent and 6.18 percent respectively at the end of
March 2015.
Easing norms for foreign ownership of government debt, the RBI has announced higher investment
limits in rupee terms in government securities by foreign portfolio investors (FPIs) with a view to
bringing in an additional 1.2 lakh crore by March 2018.

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For the current fiscal, RBI said it has been decided to enhance the limit for investment by FPIs in Gsecs in two tranches from October 12, 2015 and January 1, 2016. The limit will be increased from
1.53 lakh crore to 1.7 lakh crore from October 12 and 1.86 lakh crore from January 1.
Axis Bank introduced a new slab for its home loan borrowers with offers starting at 9.60 per
cent onward for loans up to Rs 28 lakh
 For salaried borrowers, home loans up to Rs 28 lakh will come at 9.60 per cent, which is only
0.10 per cent over its revised base rate of 9.50 per cent
 Note: State Bank of India’s best offering for women is 9.50 per cent, while the same for other
borrowers is 9.55 per cent.
ICICI Bank, India’s largest private sector bank, launched a service named “mVisa”, to enable
customers to make electronic payments from their smartphones at physical stores, e-commerce and
other deliveries at home, radio taxis, and utility billers, among others.
 Note: ICICI Bank claims to be the first bank globally to launch a mobile app-based ‘mVisa’
solution for consumers and merchants.
 About ICICI Bank:
 Tagline : Hum Hai Na, Khyal Apka
 CEO : Chanda Kochhar
 Headquarters : Mumbai
YES Bank has announced a tie-up with Singapore-based MatchMove Pay that will enable the
bank’s customers who do not own credit cards or even online banking facilities to immediately start
making purchases online or in-app.
Bank of Baroda has detected 350 crore bill discounting irregularity and initiated an investigation
into it.
The shareholders of Bank of Maharashtra approved raising the bank’s equity capital through
preferential issue of 10,51,50787 equity shares to the Government of India aggregating Rs 394
China launched the first phase of China International Payment System (CIPS), a milestone in
bolstering Yuan’s global usage and furthering cross-border clearing of its currency from the Chinese
mainland instead of offshore centers abroad.
 The launch of the CIPS was expected to boost the Shanghai Free Trade Zone (FTZ) launched
in 2013 as a test bed for new reforms.
 Developed and administered by the People's Bank of China, CIPS enables market participants
outside China to clear Yuan transactions with their Chinese counterparts.
India’s foreign exchange reserves rose by $827.4 million to $350.80 billion.
To encourage banks to seek more collateral for giving home loans, the Reserve Bank of India
prescribed lower risk weights where the borrower brings higher contribution. This is expected to
free up capital for banks to give more loans.
Punjab National Bank (PNB) claimed the Beighton Cup hockey tournament at the Sports
Authority of India (SAI) ground in Kolkata.
 PNB defeated Indian Oil Corporation (IOC) by 5-3 in penalties.
Annual meetings of the World Bank Group and the International Monetary Fund were held between
in the Peruvian capital Lima.
 Key issues of discussions during the Fund-Bank meeting were

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The Role of World Bank and the IMF to support the 2030 agenda for Sustainable
Development Goals (SDGs)
 Shareholding review of the World Bank and changes in the financing structure of
International Development Agency (IDA)
 The stalemate in the implementation of the 2010 IMF quota and governance reforms
The capital requirement of Indian banks would cross the Rs. 5 lakh-crore mark while meeting the
global Basel III banking norms by March 2019, according to the study titled ‘Basel III standards:
Concepts, Issues & Challenges’, a Assocham study report.
Private sector lender Bandhan Bank, which started operations as a full—fledged bank from August
23 this year, has garnered a deposit base of Rs. 1,500 crore till date.
 About Bandhan Bank:
 CEO : Chandra Shekhar Ghosh
 Chairman : Ashok Lahiri
 Headquarters : Kolkata
 Tagline : Aapka Bhala, Sabki Bhalai
The National Housing Bank (NHB) has granted permission to six new entities to become housing
finance companies.
 These six companies are Supreme Housing Finance, Nivara Home Finance, Khush Housing
Finance Private, Bajaj Housing Finance Capri, Global Housing Finance Pvt Ltd and Hinduja
Housing Finance Ltd.
 Note: Thus, as on date, the total number of HFCs registered with NHB is 72
ICICI Bank announced the launch of ‘Money2World’, a fully online outward remittance service
for resident Indians.
YES Bank has got the RBI's approval to set up a mutual fund, asset management company (AMC)
and a trustee company.
P S Jayakumar, the former chief executive of VBHC Value Homes, took charge as the new MD
and CEO of the state-owned Bank of Baroda for three years.
In a big boost to the government’s financial inclusion agenda, deposits in bank accounts under the
Pradhan Mantri Jan Dhan Yojana (PMJDY) have exceeded 25,000 crore.
 As on October 7, the deposits collected stood at 25,146.97 crore.
 The State Bank of India, United Bank of India and Oriental Bank of Commerce are the major
contributors to PMJDY.
Kotak Mahindra Bank (KMB) announced the launch of Kotak Bharat app in Hindi, English,
Gujarati, Marathi, Tamil and Kannada (6 languages) , a mobile solution that requires no Internet
connectivity, as part of its inclusive digital banking philosophy.
 KMB is India’s first bank to achieve this distinction, which encourages cashless transactions
by enabling customers to transfer up to Rs. 2,500 per day and at a time, it said.
 About Kotak Mahindra Bank:
 CEO : Uday Kotak
 Headquarters : Mumbai
 Founder : Uday Kotak
 Slogan : Let's make money simple.

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Important Foreign Banks and Country
Berclays Bank
Citi Bank
JP Morgan Chase
Bank of America

Commercial Bank
Bank of Ceylon
BNP Paribas Bank
Societe Gednerale
Commercial Bank
Deustsche Bank
Scotia Bank
DBS Bank

The Netherlands

Sri Lanka

Punch Lines of Banks

Hum Hai Na : ICICI
Good People to Grow with : Indian
Overseas Bank
With you All the Way : State Bank of India
A Trusted Relationship : SBH
Tradition of Trust : Allahabad Bank
Trusted Family Bank : Dena Bank
Good People to Bank with : Union Bank of
Banking for All : IDBI Bank
World’s Local Bank : HSBC
We Understand your World : HDFC
Friendly, Intelligent, Responsive : Andhra
A Friend you can Bank upon : Vijaya Bank
Together we Prosper : Bank of Rajasthan
Your Perfect Banking Partner : Federal
Taking Banking Technology to Common
Man : Indian Bank
Prosperity to All : Corporation Bank
We are changing for you : Canara Bank
Experience our Expertise : Yes Bank
Central to you Since 1911 : Central Bank
of India
Serving to Empower : J & K Bank
The Changing Face of Prosperity : Lakshmi
Vilas Bank

Where service is a way of life : Punjab &
Sindh Bank
Where Every individual is Committed :
Oriental Bank of Commerce
The Bank that begins with U : United Bank
of India
Your Faithful & Friendly Financial Partner :
Syndicate Bank
Relationship Beyond Banking : Bank of
Honours your Trust : UCO Bank
Smart Way to Bank : Karur Vysya Bank
A Passion to Perform : Deutche Bank
Experience Next Generation Banking :
South Indian Bank
The Name you can Bank upon : Punjab
National Bank
India’s International Bank : Bank of
One Family, One Bank : Bank of

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Banking and Financial Abbreviations

ACF Auto-Correlation Function
AD Authorized Dealer
ADB Asian Development Bank
ADR American Depository Receipt
AFS Annual Financial Statement
AGM Annual General Meeting
AIRCSC All India Rural Credit Survey
AO Additive Outliers
AR Auto Regression
Moving Average
AFS Available For Sale
ASSOCHAM Associated Chambers of
Commerce and Industry of India
ATM Asynchronous Transfer Mode
ATM Automated Teller Machine
BIS Bank for International Settlements
BOI Bank of India
BoP Balance of Payments
BPM5 Balance of Payments Manual, 5th
BPSD Balance of Payments Division,
BSCS Basel Committee on Banking
BSR Basic Statistical Returns
CAD Capital Account Deficit
CAG Controller and Auditor General of
CBS Consolidated Banking Statistics
CC Cash Credit
CD Certificate of Deposit
CD Ratio Credit Deposit Ratio
CDBS Committee of Direction on
Banking Statistics
CF Company Finance
CFRA Combined Finance and Revenue

CGRA Currency and Gold Revaluation
CII Confederation of Indian Industries
CO Capital Outlay
CP Commercial Paper
CPI Consumer Price Index
CPI-IW Consumer Price Index for
Industrial Workers
CR Capital Receipts
CRAR Capital to Risk Weighted Asset
CRR Cash Reserve Ratio
CSIR Council of Scientific and Industrial
CSO Central Statistical Organisation
CVC Central Vigilance Commission
DAP Development Action Plan
DBOD Department of Banking Operations
and Development
DBS Department of Banking Supervision,
DCA Department of Company Affairs,
(Now known as Ministry of Companies
Affairs, MCA)
Government of India
DCB Demand Collection and Balance
DCCB District Central Cooperative Bank
Management, RBI
DD Demand Draft
DDS Data Dissemination Standards
DEIO Department of External Investments
and Operations
DESACS Department of Statistical
Analysis & Computer Services, RBI
DGBA Department of Government and
Bank Accounts, RBI
Commercial Intelligence and Statistics
DI Direct Investment

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DICGC Deposit Insurance and Credit
Guarantee Corporation of India
DID Discharge of Internal Debt
DRI Differential Rate of Interest Scheme
DSBB Dissemination Standards Bulletin
DVP Delivery versus Payment
ECB External Commercial Borrowing
ECB European Central Bank
ECGC Export Credit and Guarantee
ECS Electronic Clearing Scheme
EDMU External Debt Management Unit
EEA Exchange Equalization Account
EEC European Economic Community
EFR Exchange Fluctuation Reserve
EPF Employees Provident Fund
EUR Euro
EXIM Bank Export Import Bank of India
FCA Foreign Currency Assets
FCCB Foreign Currency Convertible
FCNR(B) Foreign Currency Non-resident
FCNRA Foreign Currency Non-resident
NonRepatriable Deposit
FDI Foreign Direct Investment
FEMA Foreign Exchange Management
FI Financial Institution
FICCI Federation of Indian Chambers of
Commerce and Industry
FII Foreign Institutional Investor
FIMMDA Fixed Income Money Market
and Derivatives Association of India

FISIM Financial Intermediation Services
Indirectly Measured
FLAS Foreign Liabilities and Assets
FOF Flow Of Funds
FPI Foreign Portfolio Investment
FRA Forward Rate Agreement
FRBM Fiscal Responsibility and Budget
Management Act, 2003
FRN Floating Rate Note
FSS Farmers’ Service Societies
FWG First Working Group on Money
supply Manual on Financial and Banking
GDP Gross Domestic Product
GDR Global Depository Receipt
GFD Gross Fiscal Deficit
GFS Government Finance Statistics
GIC General Insurance Corporation
GLS Generalized Least Squares
GoI Government of India
GPD Gross Primary Deficit
G-Sec Government Securities
HDFC Housing Development Finance
HFT Held For Trading
HICP Harmonised Index of Consumer
HO Head Office
HUDCO Housing & Urban Development
Reconstruction and Development
IBS International Banking Statistics
ICAR Indian Council of Agricultural
ICICI Industrial Credit and Investment
Corporation of India
ICMR Indian Council of Medical

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IDB India Development Bonds
IDBI Industrial Development Bank of
IDD Industrial Development Department
IFAD International Fund for Agricultural
IFC International Finance Corporation
IFC(W) International Finance Corporation
IFCI Industrial Finance Corporation of
IFR Investment Fluctuation Reserve
IFS International Financial Statistics
IGLS Iterative Generalized Least Squares
IIBI Industrial Investment Bank of India
IIP Index of Industrial Production
IIP/InIP International Investment Position
IMD India Millennium Deposits
IMF International Monetary Fund
IN India
INR Indian Rupee
IOTT Input-Output Transaction Table
IP Interest Payment
IRBI Industrial Reconstruction Bank of
ISDA International Swaps and Derivative
ISIC International Standard Industrial
ISO International Standards Organization
ITRS International Transaction Reporting
IWGEDS International Working Group
on External Debt Statistics
KVIC Khadi & Village Industries
LAF Liquidity Adjustment Facility
Multipurpose Societies
LAS Loan & Advances by States
LBD Land Development Bank

LBS Locational Banking Statistics
LERMS Liberalised Exchange Rate
Management System
LIC Life Insurance Corporation of India
LS Level Shift
LT Long Term
LTO Long Term Operation
M1 Narrow Money
M3 Broad Money
MA Moving Average
MCA Ministry of Company Affairs
MIGA Multilateral Investment Guarantee
MIS Management Information System
MMSE Minimum Mean Squared Errors
MoF Ministry of Finance
MOF Master Office File
MSS Market Stabilisation Scheme
MT Mail Transfer
MTM Mark-To-Market
NABARD National Bank for Agriculture
and Rural Development
NAC(LTO) National Agricultural Credit
(Long Term Operation)
NAIO Non Administratively Independent
NAS National Account Statistics
NASSCOM National Association of
Software and Services Companies
NBC Non-Banking Companies
NBFC Non Banking Financial Companies
NEC Not Elsewhere Classified
NEER Nominal Effective Exchange Rate
NFA Non-Foreign Exchange Assets
NFD Net Fiscal Deficit
NGO Non-Governmental Organization
NHB National Housing Bank
NIC National Industrial Classification
NIF Note Issuance Facility
NNML Net Non-Monetary Liabilities

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NPA Non-Performing Assets
NPD Net Primary Deficit
NPRB Net Primary Revenue Balance
NPV Net Present Value
NR(E)RA Non-Resident (External) Rupee
(NonRepatriable) Rupee Account
NRE Non-Resident External
NRG Non-Resident Government
NRI Non-Resident Indian
NSC National Statistical Commission
NSSF National Small Savings Fund
OD Over Draft
ODA Official Development Assistance
OECD Organisation for Economic
Cooperation and Development
OECO Organisaton for Economic Cooperation
OFI Other Financial Institutions
OLTAS OnLine Tax Accounting System
OMO Open Market Operations
Commercial Bank
PACF Partial Auto-Correlation Function
PACS Primary Agriculture Credit
Agriculture and Rural Development Bank
PD Primary Deficit
PDAI Primary Dealers Association of
PDO Public Debt Office
PDO-NDS Public Debt Office-cumNegotiated Dealing System
PDs Primary Dealers
PES Public Enterprises Survey
PF Provident Fund
PIO Persons of Indian Origin
PMJDY Pradhan Mantri Jan-Dhan Yojana
PNB Punjab National bank
PO Principal Office

PRB Primary Revenue Balance
PSE Public Sector Enterprises
PUC Paid Up Capital
QRR Quick Review Report
RBI Reserve Bank of India
RD Revenue Deficit
Management System
RE Revenue Expenditure
REC Rural Electrification Corporation
REER Real Effective Exchange Rate
RFC Residents Foreign Currency
RIB Resurgent India Bonds
RIDF Rural Infrastructure Development
RLA Recoveries of Loans & Advances
RLC Repayment of Loans to Centre
RMB Renminbi (Chinese)
RO Regional Office
RoCs Registrars of Companies
RPA Rupee Payment Area
RPCD Rural Planning and Credit
Department, RBI
RR Revenue Receipts
RRB Regional Rural Bank
RTP Reserve Tranche Position
RUF Revolving Underwriting Facility
RWA Risk Weighted Asset
SAM Social Accounting Matrix
SAS Statistical Analysis System
SBI State Bank of India
SC Schedule Caste
SCARDB State Cooperative Agriculture
and Rural Development Bank
SCB State Cooperative Bank
SCB Scheduled Commercial Bank
SCS Size Class Strata
SDDS Special Data Dissemination
SDR Special Drawing Right

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SEBI Securities and Exchange Board of
SEBs State Electricity Boards
SFC State Financial Corporation
SGSY Swarnajayanthi Gram Swarrojgar
SHGs Self-Help Groups
SIDBI Small Industries Development
Bank of India
SIDC State Industrial Development
SI-SPA Systems Improvement Scheme
under Special Project Agriculture
SJSRY Swarna Jayanti Shahari Rojgar
SLR Statutory Liquidity Ratio
SLRS Scheme for Liberation &
Rehabilitation of Scavangers
SMG Standing Monitoring Group
SNA System of National Accounts
SRWTO Small road & Water Transport

SSI Small-Scale Industries
SSSBEs Small Scale Service & Business
ST Schedule Tribe
SWG Second Working Group on Money
TBs Treasury Bills
TC Temporary Change
TT Telegraphic Transfer
UBB Uniform Balance Book
UBD Urban Banks Department
UCB Urban Cooperative Bank
UCN Uniform Code Number
US United States
USD US Dollars
UTI Unit Trust of India
VC Venture Capital
WGMS Working Group on Money
Supply: Analytics and Methodology of
WPI Wholesale Price Index
WSS Weekly Statistical Supplement
YTM Yield to Maturity
ZO Zonal Office

Credit Rating Agencies :

Credit rating is the technique of credit risk valuation for the corporate debt instruments reflection
borrower’s expected capability and inclination to pay interest and principle in a timely manner.
John Moody first introduced the concept in 1909.
Methodology : A ration exercise is done at the request of the company. It applies to a particular debt
obligation of the company and is not a general purpose evaluation of the company.

Name of Agency
Moodys Investor
Fitch rating

Bond Market


Financial Services


Financial Services


Rating Research, Risk and 1987
Policy Advisory
Services of India
Limited (CRISIL)

Head Quarter
New York,
USA City
New York,
USA City
New York City,
USA & London,
Mumbai, India

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Head / Key People
Raymon W. MC
Daniel Jr
Doulas L. Peterson
(CEO & President)
Ms. Roopa Kudva
(MD & CEO)



Information and
Agency of India
Bureau India Ltd.

Credit Rating and 1991

Gurgaon, India

Naresh Takkar,

Research, Risk and 2000
Policy Advisory

Mumbai, India


Credit Rating, Risk

(East), O. V. Bundellu
Mumai, India
Mumbai, India
Bangalore, India
(Chairman & CEO)


(FOR Research, Risk & 2005
Policy Advisor
Research, Risk & 2007
Bric Work India


Latest Schemes & Plans

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) – It provides annual life insurance of 2
akh rupees and covers death due to any reason. A premium of 330 rupees per annum is paid by the
subscribers to enrol in the scheme. People in the age group of 18 to 50 years having a bank account
are eligible to join.
Pradhan Mantri Suraksha Bima Yojana (PMSBY) – It provides for risk coverage of 2 lakh
rupees for accidental death and full disability and 1 lakh rupees for partial disability due to an
accident. It is available to people in the age group of 18 to 70 years having a savings bank account. A
premium of 12 per annum is paid by the subscriber.
Atal Pension Yojana (APY) – It will address old age income asecurity need of all citizens in
unorganized sector. Age of joining is 18 – 40 years. All existing subscribers of Swavalamban would
be automatically migrated to APY. Subscribers would receive fixed pension between 1000 – 5000
rupees per month at the age of 60 years, depending on their contributions, that will vary on the age of
joining the scheme. Those joining at earlier age will get more pension on reaching 60 years of age.
PMGSY Scheme : This scheme is related to Rural Infrastructure.

Sukanya Samriddhi Account New Saving Scheme for Girl Child

The account can be opened by natural or legal guardian of girl child.
The age of the girl at the time of opening of account should not be more than 10 years. One year
relaxation available this year.
Minimum deposit amount is 1000 and maximum amount is 150000 per annum.
Money must be deposited for 14 years.
Amount can be deposited in cash or cheque.
Interest is 9.1% per annum.
Maturity date is 21 years from date of opening or date of marriage of girl child which ever is earlier.
50% withdrawal can be made for higher studies of girl child after her age of 18 years.
Account shall be closed premature in the case of death of Girl child.

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Railway Minister Suresh Prabhu has presented
the Narendra Modi-led BJP government's first
full year Rail Budget on 26th February 2015.
The Key Themes of the Budget were in line with
Prime Minister Narendra Modi's initiatives Swachch Bharat Mission, Make in India and
Digital India.
Here are the highlights of the Rail Budget 2015

There is no increase in passenger rail fares
No new trains announced.
Plan Outlay proposed Rs. 1,00,011 crore,
increased by 52%
Allocation for passenger amenities up by 67%
Rs.8.5 lakh crore will be invested in Railways
in next 5 years.
'Operation 5 mins', wherein passengers
travellling unreserved can purchase a ticket in
5 minutes.
Bio toilets and airplane-type vaccum toilets in
Rs 1,000 Nirbhaya Fund, which was lying idle
so far, will finally board a train to provide
women's safety
Surveillance cameras in select coaches and
ladies compartments for women's safety
without compromising on privacy.
Rail tickets can now be booked 120 days in
The speed of nine railway corridors will be
increased to 160 and 200 kmph
200 more stations to come under Adarsh
Station scheme
In 400 stations wi-fi facility will be provided
Facility of online booking of wheelchair for
senior citizens.
Satellite railway terminals in major cities.

Centrally managed Rail Display Network is
expected to be introduced in over 2K stations
over the next 2 years.
All india 24/7 helpline - 138 from March 2015
; Toll free No.182 for security.
917 road under-bridges and over-bridges to be
constructed to replace 3,438 railway crossings;
at a cost of Rs. 6,581 crore.
Four Railway Research Centres to start in four
A mobile application to address complaints of
people is also being developed
SMS alert services for passengers to inform
them about arrival and departure of trains
The facility of e-ticketing to go paper less
24 to 26 coaches in certain identified trains,
more general class coaches, ladders to be
Introduction of integrated ticketing will be
done, a Defence travel system has been
developed to make travel easier
Satellite railway terminals in 10 major cities
Railways to become prime mover of Indian
Economy, Five years action plan proposed
Thrust on measurable and sustainable
improvement in passenger experience and to
make Rail a safer means of travel
More General class coaches will be added in
identified trains.
Train Protection Warning System and Train
Collision Avoidance System to be installed on
select routes
Investment 84% higher, 77 new projects
doubling/tripling/quadrupling works proposed
Cleanliness in Railways highest priority under
Swachh Rail Swachh Bharat

Ahead of the Union Budget, the Finance Minister
Arun Jaitley tabled the Economic Survey 20142015 in Lok Sabha, which outlines the broad
direction of the Budget and the economic
performance of the country. This survey, prepared
by the finance ministry's chief economic adviser
Arvind Subramanian, forecasts Indian economy is
likely to grow above 8 percent in 2015-16. The
Survey further said that economic growth for the
financial year 2015-16 is likely to remain between
8.1 and 8.5 percent.

Key Points to Remember

Growth rate of over 8% expected for 20152016
Fiscal deficit of 4.1 pc achievable
Inflation rate pegged at 5 to 5.5 pc

Below are the highlights of the survey.
Highlights of Economic Survey 2014-15

Fiscal Deficit
o India must meet its medium-term
fiscal deficit target of 3 per cent of
o Government will adhere to fiscal
deficit target of 4.1 per cent of
GDP in 2014/15
o Govt should ensure expenditure
control to reduce fiscal deficit
o 2015/16 GDP growth seen at over
8 pct y/y
o Double digit economic growth
trajectory now a possibility
o Economic growth at market prices
seen between 8.1 - 8.5 per cent in

2015/16 on basis on new GDP
calculation formula
Current Account Deficit
o Estimated to fall 1 pct of GDP in
coming fiscal year
o Inflation shows declining trend in
o Inflation likely to be below central
bank target by 0.5 - 1 per centage
o Lower inflation opens up space for
more monetary policy easing
o Govt and central bank need to
conclude monetary framework pact
to consolidate gains in inflation
o CPI inflation in 2015/16 is likely to
range between 5 - 5.5 per cent
o There is scope for big bang reforms
o India
investments and still hit its
borrowing targets
Fiscal Consolidation
o Govt remains committed to fiscal
o India can balance short-term
imperative of boosting public
investment to revitalize growth
with fiscal discipline
o Outlook for external financing is
correspondingly favorable


inance Minister Arun Jaitley on 28th
February 2015 presented the Union Budget
for the year 2015-16. Being termed as 'make or
break', this is Arun Jaitley and the NDA
Government's first full-year Budget. Here are the
key highlights of the Budget.

Important Numbers to Note

1. Abolition of Wealth Tax.
2. Additional 2% surcharge for the super rich with
income of over Rs. 1 crore.
3. Rate of corporate tax to be reduced to 25% over
next four years.
4. Total exemption of up to Rs. 4,44,200 can be
5. 100% exemption for contribution to Swachch
Bharat, apart from CSR.
6. Service tax increased to14 per cent.

Non-Plan expenditure : Rs 13,12,200 crore.
Plan expenditure: Rs Rs 4,65,277 crore.
Total expenditure: Rs 17,77,477 crore.
Gross Tax receipts : Rs 14,49,490 crore.
Devolution to the States : Rs 5,23,958 crore.
Share of Central Government : Rs 9,19,842
Non Tax Revenues : Rs 2,21,733 crore.

Fiscal deficit : 3.9% of GDP and Revenue
Deficit: 2.8% of GDP

Sector-wise Highlights of Union Budget 2015



1. Rs. 25,000 crore for Rural Infrastructure
Development Bank.
2. Rs. 5,300 crore to support Micro Irrigation
3. Farmers credit - target of 8.5 lakh crore.
1. Rs. 70,000 crores to Infrastructure sector.
2. Tax-free bonds for projects in rail road and
3. PPP model for infrastructure development to be
revitalised and govt. to bear majority of the risk.
4. Rs. 150 crore allocated for Research &
5. NITI to be established and involvement of
entrepreneurs, researchers to foster scientific
6. Govt. proposes to set up 5 ultra mega power
projects, each of 4000MW.
1. AIIMS in Jammu and Kashmir, Punjab, Tamil
Nadu, Himachal Pradesh, Bihar and Assam.
2. IIT in Karnataka; Indian Institute of Mines in
Dhanbad to be upgraded to IIT.
3. PG institute of Horticulture in Armtisar.
4. Kerala to have University of Disability Studies
5. Centre of film production, animation and
gaming to come up in Arunachal Pradesh.
6. IIM for Jammu and Kashmir and Andhra

Welfare Schemes
1. 50,000 toilets constructed under Swachh
Bharath Abhiyan.
2. Two other programmes to be introduced- GST
& JAM Trinity. GST will be implemented
by April 2016.
3. MUDRA bank will refinance micro finance
orgs. to encourage first generation SC/ST
4. Housing for all by 2020.
5. Upgradation 80,000 secondary schools.
6. DBT will be further be expanded from 1 crore
to 10.3 crore.
7. For the Atal Pension Yojna, govt. will
contribute 50% of the premium limited to Rs.
1000 a year.
8. New scheme for physical aids and assisted
living devices for people aged over 80 .
9. Govt to use Rs. 9000 crore unclaimed funds in
PPF/EPF for Senior Citizens Fund.
10. Rs. 5,000 crore additional allocation for
11. Govt. to create universal social security system
for all Indians.
Renewable Energy
1. Rs. 75 crore for electric cars production.
2. Renewable energy target for 2022: 100K MW
in solar; 60K MW in wind; 10K MW in
biomass and 5K MW in small hydro

1. Rs. 2,46,726 crore for Defence.
2. Focus on Make in India for
manufacturing of Defence equipment.


1. Develpoment schemes for churches and
convents in old Goa; Hampi, Elephanta caves,
Forests of Rajasthan, Leh palace, Varanasi ,
Jallianwala Bagh, Qutb Shahi tombs at
Hyderabad to be under the new toursim scheme.
2. Visa on Arrival for 150 countries


MUDRA Bank, an ambitious initiative to provide boost to India’s micro and small business entities,
was inaugurated by Prime Miister Narendra Modi at a programme held in New Delhi on 8th Aprl
2015. Here are some important points you should know about MUDRA Bank.

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Full Form of MUDRA : Micro Units Development and Refinance Agency [In Sanskrit and Hindi
MUDRA also means Currency]
MUDRA Bank will primarily serve the financial needs of small entrepreneurs and will also act as a
regulator for “Micro Finance Institutions (MSIs)”.
It is being set up through a statutory enactment and will be responsible for developing and
refinancing through the Pradhan Mantri MUDRA Yojana, which was also launched on this
MUDRA Bank has a corpus of Rs. 20,000 crore and a credit guarantee corpus of Rs. 3,000 crore.
Initially it will work as a part of the Small Industries Development Bank of India (SIDBI).
The Names given to 3 financing stages for MUDRA Bank
o Shishu, Kishore and Tarun
o Shishu : It will be the first financing stage for MUDRA Bank and will include the time when
a business entity is just starting its operations. The loan cover in this stage will be upto Rs.
o Kishore : It will be the second financing stage for MUDRA Bank and the nterprenuer will be
eligible for a loan ranging from Rs. 50,000 to Rs. 5 lakh under this stage.
o Tarun : It will be the third and final financing stage for MUDRA Bank and maximum loan
up to Rs. 10 lakh can be provided under this stage.

Bandhan Bank

Bandhan Bank, began operations from August 23 onwards.
o Bandhan Bank started as a micro-finance company in 2001, received banking licence by
Reserve Bank of India in 2014.
o Bandhan is the first bank to be set up in eastern part of India after Independence.
o About Bhandhan Bank
 Head Quarters: Kolkata
 Founded on : 23rd August 2015
 CEO and Founder: Chandra Shekhar Ghosh

NITI Aayog
o Union government has renamed Planning Commission as Niti Aayog. Government’s decision
comes after the Prime Minister Narendra Modi’s 2014 independence Day announcement that
the planning commission would be replaced with a new – age institution.
o NITI Aayog Members :
o Chairperson : Narendra Modi
o CEO : Sindhushree Khullar
o Vice Chairperson : Arvind Panagariya
o Ex-Officio Members : Rajnath Singh, Arun Jaitley, Suresh Prabhu and Radha Mohan Singh
o Special Invitees : Nitin Gadkari, Smriti Zubin Irani and Thawar Chand Gehlot
o Full Time Members : Bibek Debtoy, V. K. Saraswat and Ramesh Chand (he was appointed
on 9th September 2015)

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o World Bank / IBRD
o Head Quarters : Washington
o Established on : 1944
o President : Jim Yong Kim
o Member Countries : 188 Countries
o New Member : South Sudan on 18th
April 2012
o International Development Association
o Formed in - 8th November 1960
o Head Quarters - Washington, D.C
o Members - 172 Countries
o Newest Member - South Sudan (18th
April 2012)
o Parent Organization - World Bank
o President - Jim Yong Kim (President
of the World Bank)
o Largest Borrower - India
o United Nations Conference on Trade and
Development (UNCTAD)
o Established in - 1964
o Headquarters - Geneva, Switzerland
o Members - 194
o Secretary-General - Mukhisa Kituyi
o New Member - FUNGLODE
o World Trade Organization
o Head Quarters - Centre William
Rappard, Geneva, Switzerland
o Head - Roberto Azevêdo
o Members - 160
o FOrmed on - 1st January 1995
o New Member - Yemen on 26th June
o European Union (EU)
o Capital : Brussels (de facto)
o Heads :
 President of the European
Council – Donald Tusk

President of the European
Commission - Jean-Claude
o Formation (year wise)
 23rd July 1952 - Treaty of Paris
 1st January 1958 - Treaty of
 1st July 1967 - Merger Treaty
 1st November 1993 - Treaty of
 1st December 2009 - Treaty of
o Members : 28 memers
o Newest member - Croatia (joined on
1st July 2013).
o Association of South East Asian Nations
o Head Quarters : Jakarta, Indonesia
o Secretary General : Lê Luong Minh
o Established on : 8th August 1967
o Members :
 Brunei
 Cambodia
 Indonesia
 Laos
 Malaysia
 Myanmar (Burma)
 Philippines
 Singapore
 Thailand
 Vietnam
o Asian Development Bank (ADB)
o Established on : 22nd August 1966
o Head Quaters : Manila, Philippines
o President : Takehiko Nakao
o Member Countries : 67
o Regional Members : 48 (New Member
- Georgia in 2007)
o Non Regional Members : 19 (New
Member - Ireland in 2006)


o Principal Subscriber : Japan (with the
subscribed capital 15.670 %)
o International Finance Corporation (IFC)
o Head Quarters : Washington, D.C.
o Established on - 20th July 1956
o CEO - Jin-Yong Cai
o Current Membership - 184 Members
o New Member - South Sudan on 18th
April 2012
o International Monetary Fund (IMF)

o Head Quarters : Washington, D.C.,
United States
o Managing Director : Christine Lagarde
o Current Membership : 188 Countries
o Founding Countries - 29
o Member Countries - 188
o Newest Member : South Sudan on 18th
April 2012
o Staff - 2,400 (approx)

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Important Note : In IBPS CWE PO V and Clerks V Online Exams, they are
asking more than 85% of questions from Banking / Economy Background and
remaining 15% from recent current affairs. So, we have not included the regular
Current Affairs stuff in this pdf file. If you have enough time, please download the
Current Affairs material and practice sets from below link. All the Best.

Download Current Affairs Study Materials 2015 from below link

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