Registration RNI No.

67802/98
Postal Regn. No.CHD/0001/2015-17

B anking
Posted at - MBU Chandigarh on 7th/10th
Volume - XX No.04 : April 2017
Rs.25 per copy · Soft Copy Annual Subscription Rs.250

Update
events

Contents of this Issue

BANKING POLICY : 2 & 5
• Gold loan disbursement in cash
• Gold Monetization scheme
• WMA Limit for 2017-18
• Subsidiaries of non-resident co.
• Foreign investment in LLPs
• Financial Literacy by FLCs

BANKING FEATURES : 4-8, 20

• Interest rates on advances
• Base rate and MCLR
• Interest rates on deposits
• PM Awas Yojna (Urban)
• Human Development Report 2016

Those who win, are those, who think they can DIARY OF EVENTS : Mar-2017: 9
• Policy, Economy
Corporate & Distribution Office • Banking Developments
1008, Sector 45-B, Chandigarh
• Capital Markets & Insurance
Phone 0172 2665 623
eMail - bankingupdate123 @ gmail.com General Awareness : 13
Multi-Option questions:15-18
www.banking update
update.. com
bankingindiaupdate
Data Bank : 20

Executive Editor - S. Chand Singh Editor in Chief - Sh. N S Toor

2 ♦ Banking events updatE ♦ April 2017
B ANKING Gold Loan Disbursement in Cash
POLICY As per (1) Non-Banking Finance Company
– Non-Systemically Important Non-Deposit taking Company
(Reserve Bank) Directions, 2016 and (2) Non-Banking Financial
Company - Systemically Important Non-Deposit taking Company
and Deposit taking Company (Reserve Bank) Directions, 2016,
or RBI, high value loans against gold of Rs.1 lakh and above
must only be disbursed by cheque.
On March 09, 2017, RBI clarified that in line with the rules issued
under Section 269SS and 269T of the Income Tax Act, 1961, the
requirements under the Income Tax Act, 1961, as amended from
time to time, would be applicable to all NBFCs with immediate
effect. Currently, the relevant threshold under the Income Tax
Act, 1961 is Rs. 20000.
Gold Monetisation Scheme
As per extant guidelines, in order to have uniformity in reporting,
reconciliation and accounting, agency banks may report the Gold
Monetisation Scheme transactions i.e., receipt, payment, penalty,
interest, commission for mobilisation, handing charges, etc.,
directly through the government account maintained for the
purpose at Central Accounts Section, RBI, Nagpur, on a daily
basis as in the case of the transactions of Public Provident Fund
Scheme, 1968. To operationalize the scheme, RBI advised banks
on 06.03.17, that banks can approach RBI Central Accounts
Section, Nagpur for necessary arrangements to report Gold
Monetisation Scheme transactions with immediate effect.
Operational flexibility for Indian subsidiaries of Non-
resident Companies
To provide operational flexibility to multinational entities and their
Indian subsidiaries exposed to currency risk arising out of current
account transactions emanating in India, the extant hedging
guidelines have been amended by RBI on 21.03.17, as under:
1. Users : Non-resident parent of an Indian subsidiary or its
centralised treasury or its regional treasury outside India.
2. Products : All FCY-INR derivatives, OTC as well exchange
traded that the Indian subsidiary is eligible to undertake as per
FEMA, 1999 and Regulations and Directions issued thereunder.
3. Operational Guidelines, Terms and Conditions for hedging
• The transactions under this facility will be covered under a tri-
partite agreement involving the Indian subsidiary, its non-resident
parent / treasury and the AD bank. This agreement will include
the exact relationship of the Indian subsidiary or entity with its
overseas related entity, relative roles and responsibilities of the
parties and the procedure for the transactions, including
settlement. The ISDA agreement between the AD bank and the
non-resident entity will be distinct from this agreement.
• The non-resident entity should be incorporated in a country
that is member of the Financial Action Task Force (FATF) or
member of a FATF-Style Regional body.
(COMPILATION- SAPANDEEP TOOR & MANJOT TOOR, in Sydney, Australia - on the basis of information available on RBI Website)
• The AD Bank may obtain KYC/ AML
certification on the prescribed format.
• The non-resident entity may approach an AD
Cat-I bank directly which handles the forex
transactions of its subsidiary for booking
derivative contracts to hedge the currency risk
of and on the latter’s behalf.
• The non-resident entity may contract any
product either under the contracted route or on
past performance basis, which the Indian
subsidiary is eligible to use.
• The Indian subsidiary shall be responsible
for compliance with the rules, regulations and
directions issued under FEMA 1999 and any
other laws/rules/regulations applicable to these
transactions in India.
• The profit/ loss of the hedge transactions
shall be settled in the bank account and books
of accounts of the Indian subsidiary. The AD
bank shall obtain from the Indian subsidiary an
annual certificate by its Statutory Auditors to
this effect.
• The concerned AD Bank shall be responsible
for monitoring all hedge transactions (OTC as
well as exchange traded) booked by the non-
resident entity and ensuring that the Indian
subsidiary has the necessary underlying
exposure for the hedge transactions.
AD banks shall report hedge contracts booked
under this facility by the non-resident related
entity to CCIL’s trade repository with a special
identification tag.
WMA Limit of Central Govt. 2017-18
RBI decided that the limit for WMA for the first
half of the financial year 2017-18 will be at Rs.
60,000 crore. RBI may trigger fresh floatation
of market loans when the Govt. of India utilises
75 per cent of the WMA limit.
The interest rate will be Repo Rate and on
overdraft 2% above the Repo Rate.
The minimum balance required to be maintained
by the Govt.with RBI will not be less than Rs.
100 crore on Fridays, on the date of closure of
Govt. of India's financial year and on June 30,
i.e., closure of the annual accounts of RBI and
not less than Rs. 10 crore on other days.
Overdrafts beyond 10 consecutive working
days will not be allowed.
 Banking events updatE ♦ April 2017 ♦ 3

CORRESPONDENCE
Foreign Direct Investment (FDI-LLP) in Limited Liability
Partnerships (LLP)

COURSE
RBI notified the Foreign Exchange Management (Transfer or Issue of
Security by a Person Resident outside India) (2nd Amendment) Regulations,

PROMOTION EXAM
2017 on 03.03.2017, relating to Foreign Direct Investment (FDI-LLP) in
Limited Liability Partnerships (LLP). The summary is provided.
1. Eligible Investors: A person resident outside India or an entity Based on latest trends of IBPS exam. A large
incorporated outside India (other than in Pakistan or Bangladesh), not no. of bankers already succeeded by using
being a Foreign Portfolio Investor or Foreign Institutional Investor or the course material. If unable to attend class
Foreign Venture Capital Investor registered as per SEBI guidelines, may room program, this is the best option.
Course Kit : The course kit include:
contribute foreign capital by way of capital contribution or acquisition /
(a) subject-wise basic study material,
transfer of profit shares in the capital structure of an LLP.
(b) assignment to improve retention
2. Eligible investment : Contribution to the capital would be an eligible (c) objective type practice exercise
investment. The investment by way of ‘profit share’ will fall under the (d) recalled questions
category of reinvestment of earnings (e) mock test papers.
3. Eligibility of a LLP : FDI is permitted, subject to following conditions: Fee : May differ from bank to bank. May be
checked before remittance). Fee to be paid
a) FDI is permitted under the automatic route in LLPs operating in sectors
in advance.
where 100% FDI is allowed through the automatic route. How to enrol : To enrol, advise (a) name,
b) An Indian company or an LLP, having foreign investment, will be (b) address for correspondence (c) Email
permitted to make downstream investment in another company or LLP address, (d) bank name, (e) scale for which
engaged in sectors in which 100% FDI is allowed under the automatic appearing, (f) phone / Cell number and (f)
details of subjects for the exam (relevant
route. Onus shall be on the Indian company / LLP accepting downstream course material, other than internal bank
investment to ensure compliance with the above conditions. guidelines shall be sent).
c) A company having foreign investment can be converted into an LLP
under the automatic route only if it is engaged in a sector where foreign
investment up to 100% is permitted under automatic route. CAIIB/
4. Pricing : FDI by way of capital contribution or by way of acquisition /
transfer of profit shares, would have to be more than or equal to the fair JAIIB
price as worked out with internationally accepted / adopted norms as per
market practice and a valuation certificate to that effect shall be issued by Course is based on exam pattern of IIB&F. A
large no. of candidate have succeeded in all 3
the Chartered Accountant or Cost Accountant or by an approved valuer
papers in first attempt with our study material.
from the panel maintained by the Central Government. Course Kit : The course kit include:
In case of transfer of capital contribution / profit share from a resident to (a) subject-wise basic study material,
a non-resident, the transfer shall be for a consideration equal to or more (c) objective type practice exercise
than the fair price of capital contribution / profit share of an LLP. Further, (d) mock test papers.
in case of transfer of capital contribution / profit share from a non-resident Fee : Fee differs for different papers. Fee
to resident, the transfer shall be for a consideration which is less than or payable in advance, for which details may be
obtained by calling 01722665623 .
equal to the fair price of the capital contribution / profit share of an LLP.
How to enrol : To enrol, advise name,
5. Mode of payment : Payment shall be made: address for correspondence, eMail id, mobile
(i) by way of inward remittance through banking channels; or phone, bank name, subjects for enrolment.
(ii) by debit to NRE / FCNR(B) account of the person concerned, with an
AD - I bank in accordance with Foreign Exchange Management (Deposit)
Regulations, 2016, as amended from time to time.
6. Reporting : (i) Reporting of investment in LLPs and disinvestment/
DS Institute of Banking
transfer of capital contribution or profit shares between a resident and a
Office:SCO No.32, Sector 33-D,
non-resident may be made in a manner as prescribed by RBI. Chandigarh 160 020
(ii) All LLPs having received FDI in previous year(s) including the current Phone: 0172-2665623, 09988221167
email - banking121@gmail.com
year, shall submit to RBI, by 15th day of July of each year, a report titled
‘Annual Return on Foreign Liabilities and Assets’ as specified by RBI.
• www.banking update
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4 ♦ Banking events updatE ♦ April 2017
RBI (Interest Rate on Advances) Directions
The summary of RBI (Interest Rate on Advances)
Directions, 2016 u/s 21 and 35 A of the Banking
Regulation Act, 1949 is provided as under:
Interest Rate framework
(i) There shall be a Board approved comprehensive policy.
(ii) All advances, are to be priced w.r.t.MCLR benchmark.
(iii) Loans can be offered on fixed/floating interest rates.
(iv) On floating rate loans, the banks shall fix their lending
rates by adding the spread to the internal benchmark
rate. There shall be no lending below MCLR of a
particular maturity, for loans linked to that benchmark.
(v) Interest shall be charged on all loans (other than
agriculture loans and loans to farmers) at monthly rests.
(vi) Interest chargeable on rupee advances shall be
rounded off to the nearest rupee.
Policy on charging of Penal Interest
Banks can levy penal interest for loans exceeding Rs
25,000, as per a Board approved policy. No penal interest
to be charged for priority sector loans up to Rs 25,000.
Spread
(a) Banks shall have a Board approved policy delineating
the components of spread charged to a customer.
(b) Spread under Base rate system
(i) The credit risk premium for an existing borrower
shall not be increased except due to deterioration in
customer's credit risk profile or change in tenor premium.
This stipulation shall not be applicable to loans under
consortium / multiple banking arrangements.
(ii) The change in tenor premium shall be uniform for all
types of loans for a given residual tenor.
(c) Spread under MCLR system
In addition to the conditions laid down in section 8(a) of
these Directions, banks shall adopt the following broad
components of spread:
(i) Business strategy : It shall be arrived on the basis of
business strategy, market competition, embedded options
in the loan product, market liquidity of the loan etc.
(ii) Credit risk premium: The premium representing the
default risk arising from loan sanctioned, shall be arrived
at, based on an appropriate credit risk rating/scoring
model and after taking into consideration customer
relationship, expected losses, collaterals, etc.
(d) The spread charged to an existing borrower shall
not be increased except on account of deterioration in
the credit risk profile of the customer. Any such decision
shall be supported by a full-fledged risk profile review
of the customer.
Summary edited by : Arundeep Toor (Sydney - Australia) (Source RBI Website).
BANKING FEATURES
This stipulation shall not be applicable to loans under
consortium / multiple banking arrangements.
Reset of interest rates under MCLR system
(a) Banks can offer loans with reset dates linked to date
of first disbursement or to date of review of MCLR.
(b) MCLR prevailing on the date of first disbursement,
whether partial or full, shall be applicable till the next
reset date, irrespective of the changes in the benchmark
during the interim.
(c) The periodicity of reset shall be one year or lower.
Transition to MCLR from Base Rate/ BPLR
(a) Banks shall continue to review and publish Base Rate.
(b) Existing loans and credit limits linked to the Base
Rate shall continue till repayment or renewal.
(c) Existing borrowers can move to MCLR linked loan
at mutually acceptable terms.
The switch-over shall not be foreclosure of existing loan.
Interest Rates on Foreign Currency Loans
Banks can determine the rates as per Board approved
policy w.r.t. a market determined external benchmark.
Exemptions
The following loans are exempted from being linked to
Base rate/MCLR, for determining interest rate.:
(a) Loans under schemes formulated by Govt. of India
wherein banks charge interest rates as per the scheme.
(b) Working Capital Term Loan, Funded Interest Term
Loan, etc. granted as part of restructuring package.
(c) Loans under various refinance schemes of Govt. of
India or any Govt. Undertakings wherein banks charge
interest prescribed under the schemes to the extent
refinance is available. Interest on the part not covered
by refinance shall adhere to Base rate/MCLR guidelines.
(d) Loan to banks’ depositors against their own deposits.
(e) Loan to banks’ own employees including retired
employees, CEO/ Whole Time Directors.
(f) Loans linked to a market external benchmark.
(f) Fixed rate loans of tenor above 3 years.
The hybrid loans where the interest rates are partly fixed
and partly floating, interest rate on the floating portion
shall not be exempted from MCLR system.
Interest rates for fixed rate loans (including fixed rate
portion of hybrid loans) up to 3 years shall not be less
than the sum of (a) Marginal Cost of Funds (b) Negative
Carry on CRR (c) Operating Cost and (d) Tenor premium
for corresponding maturity on the date of sanction.
The fixed rate loans sanctioned before 01.04.16 shall
not be below Base Rate at the time of sanction or renewal.
BANKING FEATURES Banking events updatE ♦ April 2017 ♦ 5
Benchmarks for determining Rate of Interest on Loans Financial Literacy by FLCs
The internal benchmark can be Base Rate or MCLR.
(a) Base Rate In terms RBI circular dated 14.01.2016,
FLCs and rural branches were advised
(i) All rupee loans sanctioned after July 1, 2010 up to 31.03.16, shall be to conduct two types of camps (1)
priced with reference to the Base Rate. Special camps for people newly
(ii) There can be only one Base Rate to be approved by Board. inducted into financial system -1 camp
(b) Marginal Cost of Funds based Lending Rate (MCLR) per month for one year i.e. upto
January 2017, (2) target group specific
(i) All rupee loans sanctioned and credit limits renewed w.e.f. April 1, camps 1 each for 5 target groups
2016 shall be priced with reference to MCLR. (farmers, small entrepreneurs, school
(ii) The MCLR comprises of (a) Marginal cost of funds (b) Negative children, senior citizens and SHGs).
carry on account of CRR (c) Operating costs (d) Tenor premium. The policy has been revised by RBI on
(a) Marginal Cost of funds : It comprises of Marginal cost of borrowings 02.03.2017, as under:
with 92% weightage and return on networth with 8% weightage. Financial Literacy Centres (FLCs): FLCs
will conduct special camps for a period
(b) Negative Carry on CRR : Negative carry on the mandatory CRR of one year beginning April 1, 2017 on
arises due to return on CRR balances being nil. It will be calculated as “Going digital” through UPI and *99#
under: Required CRR x (marginal cost) / (1- CRR) (USSD)”. RBI has prepared posters, one
The marginal cost of funds arrived above shall be used for arriving at on UPI and one on *99# for trainers and
negative carry on CRR. the audience. These posters are
available at RBI webpage.
(c) Operating Costs: All operating costs for providing the loan product
Besides the special camps on going
including cost of raising funds shall be included. It shall be ensured that digital, FLCs will continue to conduct
the costs of providing those services which are separately recovered by the tailored camps for the different
way of service charges, do not form part of this component. target groups as per extant guidelines.
(d) Tenor premium : These costs arise from loan commitments with The tailored content for each target
longer tenor. It will be uniform for all loans for a given residual tenor. group is currently being prepared and
is expected to be shared with banks/
(iii) The tenor of the MCLR shall correspond to the following: FLCs in due course of time.
a. the tenor of the funds in the single largest maturity bucket, provided it Rural branches of banks: Rural branches
is more than 30% of the entire funds (other than equity) reckoned for of banks shall conduct only one camp
determining the MCLR , or per month (on the 3rd Friday of each
b. the weighted average tenor of two or more maturity buckets that month after branch hours). This camp
will cover all the messages that are part
together account for more than 30%, if no single maturity bucket accounts
of the Financial Awareness Messages
for more than 30% of the funds. The maturity bucket shall be arrived at (FAME) booklet and the two digital
by calculating the cumulative weightage based on the descending order platforms UPI and *99# (USSD). Where
of the maturity time buckets. there are two or more rural branches
(iv) Since MCLR will be a tenor linked benchmark, banks shall arrive at in a village, the LDM may ensure that
the rural branches conduct the camps
the MCLR of various maturities by incorporating the corresponding tenor
on rotation basis every month.
premium/ discount to the sum of Marginal cost of funds, Negative carry
Funding support from FIF: FLCs and rural
on account of CRR and Operating costs.
branches of banks are eligible for
(v) Review : Banks shall review the MCLR on a monthly basis. funding support for the financial
(vi) Publishing of MCLR : Banks will publish their MCLR of following literacy camps to the extent of 60% of
maturities every month on a pre-announced date: the expenditure of the camp subject
to a maximum of 15,000/- per camp
(1) overnight MCLR (2) one-month MCLR (3) 3-month MCLR (4) 6 (NABARD circular dated Nov 13, 2015).
month MCLR and (5) 1 year MCLR. The banks can publish MCLR of
Reporting mechanism: W.e.f. 01.04.17,
any other longer maturity also. the quarterly report on FLCs will be
(b) Banks which do not have adequate systems to carry out the review submitted by SLBCs/UTLBCs to the
of MCLR on a monthly basis, shall review their rates once a quarter on respective Regional office of RBI within
a pre-announced date for the first one year i.e. upto March 31, 2017. 20 days from the end of the quarter.
The quarterly report on rural branches
External Benchmark : Banks can determine the interest rates on the to be submitted within 30 days from the
advances linked to market determined external benchmarks. end of the quarter.
6 ♦ Banking events updatE ♦ April 2017
Interest Rates on Resident Rupee Deposits
RBI issued the RBI (Interest Rate on Deposit) directions
u/s 21 and 35 A of the Banking Regulation Act, 1949.
Interest Rate framework
(a) The rates are to be uniform across all branches and
customers. There shall be no discrimination in interest
paid between one deposit and another, of similar amount,
accepted on the same date, at any of its offices.
(b) All payments of interest are to be rounded off to the
nearest rupee for rupee deposits and to 2 decimal places
for FCNR (B) deposits.
(c) On a term deposit maturing on a non-business
working day, banks are to pay interest at originally
contracted interest rate on the original principal amount
for such day, intervening between the contracted maturity
date and payment date, on the succeeding working day.
(d) In case of reinvestment deposits and recurring
deposits, interest to be paid for the intervening non-
business working day on the maturity value.
Domestic Rupee Deposits
Domestic Current Account : No interest shall be paid. In
case of current account of a deceased individual or sole
proprietor, interest from the date of death, till the date
of payment to be paid, at applicable saving bank interest
rate, as on the date of payment.
Domestic Saving Deposits : Interest shall be calculated
on a daily product basis as under:
1. A uniform interest rate shall be set on balance up to
Rs.1 lac, irrespective of a/c balance within this limit.
2. Differential rates of interest may be paid for an end-
of-day balance exceeding Rs.1 lac.
Domestic Term Deposits :
(i) Banks can determine the maturity. The minimum tenor
shall be seven days.
(ii) Differential interest rate can be offered on bulk
deposits (i.e. single Rupee term deposits of Rs.1 cr
above – for RRBs Rs.50 lac and above).
(iii) FDR without premature withdrawal option : All term
deposits of individuals (singly or jointly) for Rs.15 lac
or below, shall have premature-withdrawal-facility.
Banks can offer term deposits, without premature
withdrawal option, above a single deposit of Rs.15 lac.
(iv) Payment of Interest on pre-mature withdrawal:
1. Interest shall be paid at the rate applicable to the
amount and period, for which the deposit remained with
the bank and not at the contracted rate.
2. No interest shall be paid, where premature withdrawal
is before 7 days.
Compilation : Sapandeep Toor (in Sydney - Australia) (Source RBI Website).
BANKING FEATURES
Payment of Additional Interest on domestic deposits:
Banks can allow additional interest of 1% p.a. above the
prevailing rate on savings or a term deposits of bank’s
staff and their exclusive associations, Chairman,
Chairman & Managing Director, Executive Director or
such other Executives appointed for a fixed tenure.
Banks can pay additional interest on fixed deposit of
resident Indian senior citizens.
Interest on overdue domestic deposits
(a) If overdue period does not exceed 14 days, renewal
should be done from the date of maturity. If it exceeds
14 days, banks should pay interest for the overdue
period as per the policy adopted by them.
(b) If a Term Deposit matures and proceeds are unpaid,
the amount left unclaimed with the bank, shall attract
savings bank rate of interest.
Floating rate term deposits : The rate shall be linked
to a market determined external benchmark.
Periodicity of payment of Interest on domestic
savings deposits:
(a) Interest shall be credited at quarterly or earlier.
(b) Interest on accounts, including those frozen by the
enforcement authorities, shall be credited on regular basis
irrespective of the operational status of the account.
Interest payable on the domestic deposit account of
deceased depositor : On matured deposits rate shall be
the contracted rate till maturity and SB rate, after maturity.
If deposit matured after date of death, contracted rate to
be paid till maturity and after maturity, simple FD rate
applicable for corresponding maturity to be paid. For
non-matured deposits, the rate will be as applicable for
corresponding maturity, without deduction of any penalty.
Interest on credit balance in cash credit account of
a farmer : Interest on minimum credit balance in the
composite cash credit a/c during the period from the
10th to the last day of each calendar month shall be paid.
Penalty on premature withdrawal :
(a) Banks shall have Board approved policy on penalties
for premature withdrawal of term deposits.
(b) The penalty shall be brought to depositors' notice at
while accepting the deposits. If not, no penalty.
(c) In case of splitting of the amount of term deposit,
there will be no penalty for premature withdrawal, if the
period and aggregate amount of the deposit, do not
undergo any change.
(d) No penalty for premature withdrawal shall be levied,
where depositors of the branch desires premature
withdrawal of deposit consequent to the transfer of
business of the bank, to another bank.
BANKING FEATURES Banking events updatE ♦ April 2017 ♦ 7

Practical Problems based on Banking Ombudsman Decisions

1) The bank had unilaterally issued an up-graded credit card on the basis of
eLearning
negative tracer SMS. Though the limit for the new card was on higher side,
bank imposed card renewal fee of Rs. 5,000 plus other applicable charges.
Study Material
Complainant’s accumulated 10000 reward points on previous card were
also forfeited by the bank. On the basis of submissions made, BO found that MOCK TEST - CDs
there was deficiency in service on the part of bank in providing upgraded Features of CDs
card without explicit consent of the complainant. Accordingly, the bank was • Explanation for each question/answer.
advised to issue free for life credit card to the complainant and also to ensure • Improve understanding and retention.
that the card is not upgraded without the customer’s written consent, restore • Remove confusions. .
original reward points and pay compensation of Rs. 10,000 for loss of time, • Improve time management. Set your own
expenses incurred, harassment and mental anguish suffered by him. time during practice.
• Test your preparation before Exam.
2) The complaint was regarding interest on housing loan at a rate higher than
• Practice on-line without use of internet.
the rate agreed. The matter was taken up with the bank which replied that as
• Questions are shuffled when used again.
per their HO Circular, in case of existing loans, the minimum rate under
• Large no. of questions based on latest
floating rate of interest was revised and where concessions had already been
guidelines and memory recalled questions.
given and rates were below revised rate, such loans were charged at revised
rate of interest. The bank admitted that the complainant had been contesting
the revision through representations. BO observed that the bank had unilaterally Bank Promotion Exam - Rs.300
revised the rate upward, which was unfavourable to him and not accepted Bank Promotion Interview - Rs.300
by borrower. Since, this is not a healthy practice, BO advised the bank to Banking Ready Recknor - Rs.300
reset the rate to the agreed rate and refund the excess interest charged. CAIIB (New Syllabus)
3) The complainant alleged that there was unilateral recovery by bank from • Bank Financial Mgmt - Rs.300
his account, without prior intimation despite regular EMI payments by him. • Advanced Bank Mgmt - Rs.300
It was noted from the bank’s reply that the bank had not intimated the • Retail Banking - Rs.300
complainant before recovering an enhanced amount of EMI. It was further • Risk Management - Rs.300
noted from loan agreement that the EMI amount was mentioned which the CAIIB (Case Studies)
complainant has abided by in letter and spirit. Moreover, the bank’s reply to • Advanced Bank Mgmt -Rs.300
the complainant gave a contrary view that he was a defaulter and that his • Bank Financial Mgmt -Rs.300
account had become NPA. The bank had not regretted its mistake in its reply JAIIB - All three papers Rs.300 (each)
to the complainant. In view of the discrepancy, bank was advised to reverse Economics Mock Test - Rs.150
the unilateral deduction. Furthermore, the bank was advised to pay a token Book-Keeping Mock Test - Rs.150
compensation of Rs.1,000 to the complainant since there was a clear case
of deficiency of customer service on the part of the bank.
Online Mock Tests
4) The complainant availed vehicle loan of Rs.5 lakh. He had remitted Rs.4,
83,230 on various dates to the loan account but the bank, instead of accounting
Promotion,CAIIB/JAIIB, log in
these repayments, parked the amount in savings account. Only on taking up nstoorBankingonline.com
by the complainant did the bank credit his loan account. The complainant
approached the BO seeking credit of interest for the amount remitted by him
to the bank. The bank clarified that the total amount of Rs.3.37 lakh and IBPS Bank PO / ClerK Exam
small amounts on various dates repaid by the complainant had been credited
as advance payments instead of partial pay-off and the interest benefit was Score High with Latest Study Kits
not passed on to him as there was no specific direction from the complainant.
However, as he had sought refund of excess interest charged, bank had Anywhere Anytime Learning
E-Books CDs, Videos
credited Rs.2,235.74 only to the loan account. It was observed from the
working sheet enclosed by the bank that the bank had debited Rs.6,754.34
towards prepayment charges out of interest benefit of Rs.8,990.08 and Contact
credited a sum of Rs.2,235.74 only. However, there was no mention about 09814 331 661
prepayment charges in the terms and conditions of the loan. The bank was 01722665623
directed by the OBO to reverse the debit towards prepayment charges. •
8 ♦ Banking events updatE ♦ April 2017
Interest Rates on Non-resident Deposits
RBI issued the RBI (Interest Rate on Deposit) directions
u/s 21 and 35 A of the Banking Regulation Act, 1949.
Rupee Deposits (NRE and NRO)
(a) Interest rates on savings deposits under Non-Resident
(External) Rupee (NRE) Deposit / Ordinary Non-
Resident (NRO) Deposits shall be at bank discretion.
(b) Interest rates on NRE/NRO term deposits shall vary
on account maturity period and size of deposit.
(i) Minimum tenor of NRE term deposits shall be one
year and that of NRO term deposits shall be 7 days.
(ii) Differential interest rate shall be on bulk deposits.
(c) Interest rates on NRE/ NRO deposits shall not be
higher than the comparable domestic rupee term deposits.
(d) Additional interest rate on deposits of bank’s own
staff or senior citizens shall not be available.
(e) If an NRE a/c holder, on return to India, requests for
conversion of NRE FD into Resident Foreign Currency
Account, interest shall be paid as under:
1. if the NRE deposit is cancelled before one year, interest
shall be paid at a rate not exceeding the rate payable on
savings deposits held in RFC accounts.
2. In other cases, interest shall be at the contracted rate.
Penalty on premature withdrawal of NRE deposits
1. No penalty shall be levied for premature withdrawal
of NRE term deposits for conversion into RFC Account.
2. Penalties for premature withdrawal shall be levied for
conversion of NRE into FCNR (B) deposit and vice versa.
Interest payable on the NRE FD of deceased depositor
If the claimants are residents, the deposit on maturity
shall be treated as a domestic rupee term deposit and
interest shall be paid for the subsequent period at a rate
applicable to a domestic term deposit of similar maturity.
Foreign Currency Non-resident (Banks) Accounts
(a) Interest rates on Fixed Deposits shall vary on account
of one or more of the following reasons:
(i) Tenor of deposits: There are 5 maturity periods with
a min period of 1 year and max 5 year. No recurring
deposits can be accepted under the Scheme.
(ii) Size of deposits : Banks can decide the currency-
wise minimum quantum on which differential rates of
interest may be offered.
(b) The interest reset period shall be six months for all
floating rate deposits.
(c) The LIBOR/SWAP rates as on the last working day
of the preceding month shall be the base for fixing ceiling
rates for the interest rates offered effective in the
following month. The interest rates ceiling shall be :
Compilation : Manjot Kaur Toor (Sydney - Australia) (Source RBI website).
BANKING FEATURES
1. (LIBOR / Swap) + 2% for 1 yr to less than 3 yr
2. (LIBOR / Swap) + 3% for 3 yr to 5 yr.
(d) LIBOR / Swap rates quoted/displayed by FEDAI shall
be used as the reference for arriving at interest rate.
Manner of calculation of interest on FCNR(B)
a) Interest on the deposits accepted under the scheme
shall be calculated on the basis of 360 days to a year
and paid at intervals of 180 days each and thereafter for
the remaining actual number of days.
b) The option to receive the interest on maturity with
compounding effect shall vest with the depositor.
Deposit of a deceased FCNR(B) depositor
1) On maturity, interest shall be at the contracted rate;
2) Before maturity, interest shall be at the rate applicable
to the period for which the deposit remained with the
bank and without charging penalty for pre-payment;
3) If depositor dies before the date of maturity but the
amount is claimed after maturity, interest shall be paid at
the contracted rate till the date of maturity and simple
interest at the applicable rate operative on the date of
maturity for the period. deposit remained with the bank.
4) If depositor dies after the date of maturity, the interest
rate operative on the date of maturity for savings deposits
held under RFC Account shall be paid from the date of
maturity till the date of payment.
5) If claimants are residents, the maturity proceeds shall
be converted into Indian Rupees. Interest shall be paid
for the subsequent period at the rate applicable to a
domestic FD of similar maturity.
Interest on FCNR (B) of NRIs on return to India
Deposits can continue till maturity at the contracted rate
of interest subject to the conditions that:
1) Such deposits shall be treated as resident deposits
from the date of return of the account holder to India.
2) Deposits on maturity shall be converted into Resident
Rupee Deposit Account or RFC Account (if eligible) at
the option of the account holder.
Premature withdrawal of deposits of FCNR-B
If the premature withdrawal takes place before one year,
no interest shall be paid.
Penalty on Premature Withdrawal of deposits
Penalty shall be levied (1) when the depositors return to
India for permanent settlement (2) for conversion of
FCNR (B) deposits into NRE deposits or vice-versa.
Banks can levy penalty to recover the swap cost in the
case of premature withdrawal of FCNR(B) deposits.
No penalties shall be levied for premature conversion of
balances in FCNR (B) deposits into RFC Accounts by
NRIs on their return to India.
 Banking events updatE ♦ April 2017 ♦ 9
• LIC DECLARES QUARTERLY RESULTS FIRST TIME IN ITS Financial
HISTORY: VK Sharma, Chairman of Life Insurance Corporation Events
of India (LIC) met the Press and declared the quarterly results for
the first time in six decade history. So far, LIC’s Annual Report is a minimum of Rs.200 daily wage for the
posted on its website without much publicity after it gets government khadi spinners. In line with the Centre’s
approval. Actually, LIC wants to send India Inc and stock market mission to reduce cash transactions, KVIC
particularly as strong message that it is dominant insurer and the has started paying the wages to its
country’s largest institutional investor. Its investment corpus of beneficiaries through direct benefit transfer
Rs.22.1 Lakh Crore on March 2016 is bigger than the Entire Mutual to their bank accounts.(BL)
Fund Industry’s January 2017 assets of Rs.17 lakh Crore. (BS) • BITCOIN FIRMS FORM SELF-
• IDBI BANK FREEZES LENDING & BRANCH EXPANSION REGULATORY BODY: Bitcoin start-ups
PLANS: IDBI Bank has decided to freeze lending and branch Zebpay, Unocoin, Coinsecure and
expansion plans after it posted a historic loss of Rs.2255 Crore in Searchtrade have jointly launched a Digital
the third quarter in an effort to conserve capital, a buffer that banks Asset and Blockchain Foundation of India
keep as a cushion against loan defaults. Instead it has decided to (DABFI) for orderly and transparent growth
focus on bad loan recoveries which are almost a fifth of its loan of the virtual currency market. The Body
book. Kishore Kharat, CEO of the Bnak has said that the will work as a self regulatory organisation
circumstances are such that they are not in a position to expand or for this business and has appointed Nishith
lend in a big way because of constraints to the capital.(ET) Desai Associates, an International Law Firm
to develop self regulation norms for the
• ESIS PLANS SUPER SPECIALITY MEDICAL BENEFITS FOR
segment. Bitcoin is not yet legally
RETIRED: The Employees State Insurance Corporation (ESIS)
recognized in India. DABFI is to build
plans to provide super speciality treatment to retired insured persons
credibility, create awareness about the
(IPs) with a ceiling of Rs.10 lakh a year. The retire dips and their
benefits and risks, liaise with the regulators
spouses are getting in-house medical facility benefit on payment of
and create a public website.(BS)
Rs.120 per annum. Now the Corporation has approved in-principle,
•
extending the facility to retired IPs subject to the same eligibility PAY PANEL MOOTS ESOP FOR PSU
criteria. The ESIS also said that the option to join shall be one time STAFF: The third Pay Revision Committee
on retirement and no enrolment shall be allowed thereafter.(BL) for the Central Public Sector Enterprises
(CPSEs) has recommended that all the listed
• SEBI NOTIFIED NEW NORMS FOR FPI INVESTMENTS: In a
PSUs formulate an Employee Stock Option
bid to deepen the capital markets, SEBI notified new norms allowing
Plan (ESOP) to motivate employees and
Foreign Portfolio Investors (FPI) to invest in unlisted corporate
retain talent. All enterprises should formulate
debt securities and securitized debt instruments. RBI also relaxed
an ESOP and 10-25% of the performance
its rules for allowing such investments by FPIs. Earlier, investment
related pay should be paid as ESOPs. The
in unlisted debt securities was permitted only in the case of
Department of Public Enterprises should
companies in the infrastructure sector. Further, investment by FPIs
elaborate the mechanism in consultation with
in securitized debt instruments was not permitted.(BL)
the authorities concerned to introduce ESOP
• KVIC HIKED WAGES FOR KHADI SPINNERS: In a bid to
in listed CPSEs.(BL)
make khadi spinning a remunerative employment, Khadi and Village
• SBI SETS UP COE FOR TRAINING
Industries Commission (KVIC) hiked the wages for spinners to
EMPLOYEES WITH DISABILITY: State
Rs.7 per hank (coiled form of khadi yarn) about 75% hike from
Bank of India, which is the Largest
Rs.4 paid before November 2016.Further KVIC resolved to ensure
Employer of those with disabilities, has
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10 ♦ Banking events updatE ♦ April 2017
taken the lead to set up a Centre of Excellence (COE) for training
employees with disability in Bengaluru. The Bank has set up the
COE keeping in mind it employs 2800 people with disability –
about 1.4% of its overall employee strength-and also to be of
service to other public sector enterprises and banks. The COE
has been set up by the SBI Foundation.(BL)
• TRANSUNION CIBIL ROLLS OUT CREDIT RISK RANKS
FOR MSMEs: Credit Information Company TransUnion CIBIL
has introduced a credit risk rank for the Micro, Small and Medium
Enterprises (MSMEs) to help banks and financial institutions for
evaluating their credit decisions better. Called the CIBIL MSME
Rank (CMR), algorithms based on the credit history data are • CENTRE SETS UP CREDIT REGISTRY
used to forecast the chances of an MSME loan going bad in the
next 12 months. Information for this is sourced from the data
that banks feed a credit information company. Based on this,
MSMEs are ranked on a scale of 1-10 with the CMR1 being the
least risky customer.(BL)
• RBI SETS UP PANEL TO REVIEW CYBER THREATS: RBI
has set up a Panel to be headed by Meena Hemchandra, ED of
RBI on cyber security to review the threats inherent in the existing maintaining data on borrowing, default and
and emerging technology. The 11-member committee will also
study adoption of various security standards and protocols,
interface with the stakeholders and suggest appropriate policy
interventions to strengthen cyber security and resilience. RBI
had already issued guidelines to banks in June mandating cyber
security preparedness to tackle risks. (BL)
• FINMIN PROPOSAL TO ENGAGE FAIR PRICE SHOPS AS
BUSINESS CORRESPONDENTS: The Finance Ministry’s
proposal that fair price shops (FPS) should be engaged as Business
Correspondents (BCs) across the country has not encouraged • FINMIN CALLS FOR SUNSET CLAUSE
the public sector banks. Bankers fear that if the proposal becomes
a reality, it will be detrimental to the viability of existing BCs, Ministry has said that all Government
which have been providing banking services in rural areas on
behalf of banks for many years. The bankers want that the
discretion to take a call on the individual/entity they can engage
as a BC should be left to the banks.(BL)
• PARLIAMENT PAC FOR FORENSIC AUDIT OF PSB
DEFAULTERS: Members of the Public Accounts Committee
(PAC) have expressed anguish after Chiefs of four public sector
banks (PSB) –IOB, Indian Bank, Allahabad Bank and UCO Bank
gave them the detailed presentations on the rising NPAs and dismal
recovery rates. PAC members accused the banks of dispersing • GOVT. TO UNVEIL IIP, WPI: The
huge amount of loans “Without due diligence” and asked why
the banks display “inaction” in recovering loans from big
defaulters compared to overdrive in recovering small loans from
ordinary defaulters. Members asked for “Forensic Audit” of
defaulters –to clinically find out whether the NPA-bearing firms
had actually made bad investments or whether they siphoned off
loans.(ET)
• BENAMI ACT VIOLATORS TO FACE SEVERE PENAL
Financial Events
ACTIONS: CBDT has warned that those
who undertake benami transactions will invite
rigorous imprisonment of up to seven years
besides being liable to pay fine up to 25% of
fair market value of the benami property.
Further, persons who furnish false
information to authorities under the Benami
Act are prosecutable and may be imprisoned
up to five years besides being liable to pay
fine up to 10% of fair market value of benami
property.(BL)
TO HELP BANKS TACKLE STRESSED
ASSETS: To enable the banking sector tackle
the problem of stressed assets which now
stands at about Rs.12 Lakh Crore, the Centre
has set up an Information Utility (IU) called
National E-Governance Services. An
Information Utility is a Credit Registry,
security interest of lending/ borrowing
transactions with banks and financial
institutions. It provides data to authorized
users on the present status of a borrower.
The draft regulations expect an IU to provide
high quality authenticated information about
debts and defaults so that courts and tribunals
accept the information in IUs as
evidence.(BL)
FOR GOVT. SCHEMES: The Finance
schemes should have a sunset clause and
must be coterminous with the tenure of the
Finance Commission, which is constituted
every five years. The Five-year Plan era ends
with the 12th Plan this month and hence all
the schemes should also revisited to improve
the quality of government expenditure. Every
scheme should have a sunset date and an
outcome review. (BL)
Government may launch two
macroeconomic indicators –the Index of
Industrial Production (IIP) and the Wholesale
Price Index (WPI) with the new Base year
2011-12 by April-end to ensure compatibility
with growth numbers. The change in the
baseline for IIP and WPI, currently at 2004-
05, is expected to bring in more accuracy in
 Banking events updatE ♦ April 2017 ♦ 11

mapping the level of economic activity and calculating other numbers Bodies. The tenant would give these
like national accounts. The Central Statistics Office (CSO) has already vouchers to the landowner who in turn
changed the base for the country’s national accounts, including the would be able to redeem them at any citizen
GDP and the Gross Value Addition. (BL) service bureau. If the rent is higher than
• GOVT. UNVEILS MAJOR CHANGES IN VRS RULES: The the value of rent voucher, the tenant would
Government has unveiled major changes in VRS rules for pay the difference in cash to the landowner.
bureaucrats. The move to effect major changes in service rules for The value of rent voucher would be
babus seeking voluntary retirement comes against the backdrop of determined by the urban local body on the
complaints of harassment by a few bureaucrats who claimed that basis of class or size of the dwelling unit
their request were kept pending for long time. The new rules allow and the prevailing rent in the city. (ET)
bureaucrats to take back their VRS request. Further the request for • BILL FOR WOMEN ON MATERNITY
VRS by IAS and IPS officers will not be kept pending beyond the LEAVE PASSED: The Parliament has
notice period mentioned by them in such requests. If the competent passed the Maternity Benefit (Amendment)
authorities don’t issue any order before the expiry of the notice Bill, 2016 whereby women working in the
period specified by the serving member, VRS will be effective from organized sector will now be entitled to
the date of expiry of the said period.(BL) paid maternity leave of 26 weeks, up from
• SBI LAUNCHED NEW FACILITY “WORK FROM HOME”: 12 weeks. The new law will apply to all
State Bank of India has launched a new facility “Work from Home” establishments employing 10 or more
to enable its employees. Now the employees can work from home people and the entitlement will be for only
using mobile devices to address any urgent requirement they may up to first two children. For third child,
have, that prevents their travelling to work. The initiative is expected the entitlement will be for only 12 weeks.
to benefit employees, especially women. SBI will use mobile The Bill also requires every establishment
computing technologies and maintain continuous control over all with 50 or more employees to provide
the enabled devices centrally to manage and secure the data and crèche facilities within a prescribed
applications on the mobile devices. Going forward, cross selling, distance. The women will be allowed four
marketing, customer relationship management and social media visits to the crèche in a day. This will
management will also be enabled to make the work from home include her interval for rest.(BL)
services comprehensive.(BL) • GOVT. RELEASES DRAFT RULES
• NEW RULES FOR GPF WITHDRAWAL: Existing rules do not FOR FAST-GROWING E-WALLETS:
give any time limit or sanction and payment of withdrawal amount. The government has released the draft
Now the norms for withdrawal of General Provident Fund (GPF) rules for e-Wallets. Digital wallets have
have been relaxed which will enable them to receive payments within seen a huge uptick in transactions after
15 days. Employees can also withdraw for select purposes after the demonetisation move late last this year.
completing 10 years of service as against 15 years of service earlier. As per draft rules, every digital wallet
It has been decided to permit withdrawal of up to 12 months pay or player should publish privacy policy and
three-fourth of the amount standing at credit , whoever is less.(BL) the terms and conditions for use of the
• GOVT. TO ROLL OUT NEW RENTAL HOUSING POLICY FOR payment systems operated by it in simple
BPL: The Government would launch the new Rental Housing Policy language on its website. Further every
with the rent vouchers for Below Poverty Line (BPL) families. digital wallet company should appoint a
Aimed at the urban poor and helping the migrant population, the chief grievance officer, whose details
scheme would involve distribution of rent vouchers by Urban Local should be prominently made available on

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12 ♦ Banking events updatE ♦ April 2017
their websites. (TOI)
• ESAF SMALL FINNACE BANK TO USE AGENT
MODEL: ESAF, Small Finance Bank, which
recently received banking licence, will focus on
“Agent-based Business Model” to expand its market
instead of brick-mortar branches. The agent
network is a successive business model in the
banking sector of many African countries. K Paul
Thomas, CMD of the Bank has said that they are
to appoint at least 10, 000 agents on a commission
basis in the next five years to provide doorstep
banking to customers . The Bank is all set to start
operations on March 17.(BL)
• SUPREME COURT CLARIFICATION ON
SARFAESI RULE: (Case-Canara Bank Vs.
Amarender) Supreme Court clarified the procedure
to be followed by a secured creditor while pursuing
its rights under the Security Interest (Enforcement)
Rules against a defaulting borrower and his
guarantors. Supreme Court stated that it is
permissible to simultaneously issue notice to the
borrower about the intention to sell mortgaged
property and issue a public notice in news papers
about the proposed auction. Supreme Court clarified
that there was no need to wait for 30 days to sell
the secured asset. (BS)
• CENTRE’S NEW SCHEME “TIES” FOR
FINANCING STATES’ INFRA PROJECTS: The
Centre’s new Scheme-Trade Infrastructure for
Export Scheme (TIES)- for financing the states’
infrastructure projects, will provide grant-in-aid up
to half of the equity being put in by implementing
agencies with a ceiling of Rs.20 Crore per project.
The scheme to be implemented for a three year
period has been designed to meet the demand of
states for infrastructure funding after the Centre
stopped funding an earlier scheme ASIDE. Financial
support from the Centre will match the equity being
put in by the Central or state implementing Agencies.
The cost of land shall not be included in the project
cost for the purpose of calculating the extent of
contribution of the implementing agency under the
scheme.(BL)
• GOVT. FOR MORE OVERSIGHT
COMMITTEES ON BAD LAONS: The
Government is taking sector specific measures to
deal with bad loans, especially the resolution of large
debts and may include setting up of more oversight
committees, as initiated by RBI, for faster settlement
of such cases. RBI has made an oversight committee to
look into process of cases referred to it by different banks.
Seeing the response and its performance, the Government
is considering multiplication of such committees. (ET)
• IRDAI EASED NORMS FOR RECRUITING POS
PERSONS: The Insurance Regulatory and Development
Authority of India (IRDAI) has eased norms for
recruitment of Point-of-Sales (POS) persons by non-life
and health insurers. With effect from April1, insurers/
intermediaries will be allowed to appoint POS persons
with the mandatory training and passing of NIELIT
examination which is already being allowed in the case of
life insurance. The insurers, however, should ensure that
the applicant for POS position is not engaged with any
other insurer or insurance intermediary by cross checking
with the database of the Insurance Information Bureau.
They should also conduct an in-house training of 15 hours
for the candidate which should be followed by an
exam.(BL)
• FINMIN OKAYS CAPITAL INFUSION & MOU FOR
PSU BANKS: The Finance Ministry has chalked out a
turnaround-linked Rs.8586 Crore Capital Infusion Plan
for 10 Public Sector Banks (PSBs).To avail themselves
of the capital support, the identified PSBs require a tripartite
Memorandum of Understanding (MOU) between the
Government, PSB Management and Employees of the
PSBs concerned. This MOU is to commit all the
participants to the agreement for a time-bound plan
beginning 2017-18 onwards with quantifiable and
measurable milestones which can be monitored on
quarterly basis.SBI has been inducted to design detailed
bank-wise plan based on which the tripartite agreement
can be signed.(BL)
• MUDRA SHIFTS FOCUS TO CREDIT GUARANTEE:
Mudra loans are essentially a re-categorisation of those
for SMEs up to Rs.10 Lakhs. Any loan by a financial
institution to an SME below Rs.10 Lakh is termed a “Mudra
Loan”. While banks get Mudra refinance at around 6%,
they are required to lend it at their base rate. However, if
they do not avail refinance , they may lend it at their
discretion, with rates linked to the Marginal Cost of Funds
(MCLR). After demonetisation, the demand for refinance
from Mudra had substantially come down. Demonetisation
had hit the demand for credit among small and medium
enterprises and banks were sitting on huge amounts of
low-cost deposits, rendering refinance from Mudra
irrelevant. Hence, with refinance not much in demand,
Mudra is likely to aggressively focus on credit guarantee
and monitoring of Mudra loans.(BS)

GENERAL AWARENESS
• India has been ranked a lowly 131 General of SAARC.(ET)
among the 188 countries surveyed • Professional Networking Site in
for human development- Human which Sachin Tendulkar has
Development Index.(BL) become the First Cricketer in the
• British Bank which is being World to join- Linkedin.(BL)
investigated by tax and law • Currency which jumped to new
enforcement agencies around the high and got more worth than
world including India for alleged tax Gold- Bitcoin.(BL)
evasion, money laundering and • Former US President Barack
unlawful cross-border banking Obama has been named as the
solicitation- HSBC (BL) Winner of the- 2017 John F
• Web Series on the Architecture Kennedy “Profile in Courage”
history and heritage has been Award.(BL)
documented in 11 volumes on- • Country whose GDP target has
Rashtrapati Bhawan.(BL) been slashed to a 25 year low to
• State which is the Largest Consumer 6.5%- China.(BL)
of Low-Price Biscuits- • Nagpur City has achieved Best
Maharashtra.(BS)
Investment Conversion Ratio and
• As per New World Wealth Report, emerged as- Topmost Smart
Mumbai with wealth of $820 Billion City in India .(ET)
is- Richest Indian City.(BS) • The British-built Ship, which
• For all vehicles contracted by the served almost 30 years in Indian
navy after a 27 year stint with
Government departments, Tags,
which have become Mandatory for the Royal Navy, also sailed into
hassle-free movement of cargo- the Guinness Book of World
Electronic Toll Tags.(BL) Records- World’s Longest-
• The Best Picture “Moonlight” won- Serving Warship INS
Virat.(BL)
Oscar 2017 Award.(BS)
• In view of International practice of • Insolvency and Bankruptcy
rating cities on liveability, India is set Board of India recognized two
to introduce its own- Liveability insolvency professional entities
Index.(ET) for implementation of the IB
• Scheme under which Aadhar now not Code- IRR Insolvency
mandatory for withdrawals- Professionals and AAA
Employees Pension Scheme.(BL) Insolvency Professional.(BL)
• Rules which have been cut from
• RBI, to review Cyber threats, set up
number of forms from 74 to 8-
a Panel to be headed by- Meena
New Trademark Rules.(BL)
Hemchandra, RBI ED.(BL)
• By April 1, the Government will • Bank which won Medals in the
launch a programme to support Collateral Awards Category at the
incubation, mentoring and funding PRCI’s 11 th Global
by- Women Entrepreneurs.(BL) Communication Conclave-
Canara Bank.(BL)
• State Government which withdraws
• 8th March has been celebrated as-
99-year lease clause for industrial
land allotment to public enterprises- International Women’s
Day.(BL)
Karnataka Government.(BL)
• Pakistan’s Diplomat Amjad Hussain • Delhi’s Indira Gandhi
International Airport has become
B Sial has become- New Secretary
in MPPA Category- World’s
Banking events updatE ♦ April 2017 ♦13
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14 ♦ Banking events updatE ♦ April 2017 DIARY OF EVENTS
No.2 Airport.(BL) Shekher Sharma have entered in- World
• The Indian Institute of Science in Bengaluru has become the Economic Forums’ 100 Young Global
First Indian University to make it to the Top 10- World’s Best Leaders List.(BS)
Small Universities 2017 List.(BS) • State, which is the Largest Producer of
• Bank in which Canadian Funds bought an Equity Stake for Wheat in the Country- Uttar Pradesh.(BL)
Rs.2255 Crore through a Bulk Deal- Kotak Mahindra Bank.(BL) • All devices using Aadhar authentication will
• Scheme under which Women Entrepreneurs will get a Single have to adhere to its new encryption
Window Clearance and other benefits to start an Airline- Regional standards from June1- Unique
Air Connectivity Scheme.(BL) Identification Authority of India.(BL)
• Microsoft launched for new capabilities for developers to build • Centre decided to wind up 8 Tribunals and
any type of application for any platform- Visual Studio 2017.(BL) these are to be merged with- Existing Other
• Loan of $750 million approved to Nepal to finance its post- Tribunals.(BL)
earthquake reconstruction projects by- EXIM Bank of India.(BL) • State which tops in Aadhar seeding of Jan
• The First Private Sector Company which received licence from Dhan Accounts (87.73%)- Andhra
PFRDA to commence operations as a Central Record-keeping Pradesh.(BL)
Agency- Karvy Computershare.(BL) • Merged Entity, which will be the Largest
• Court which upholds President’s Impeachment over a graft Telecom Operator in India- Merger of
scandal – South Korean Constitutional Court.(BS) Vodafone and Idea Cellular.(BL)
• In an unprecedented order, Supreme Court issued bailable • India’s First Multi-Bank Mobile Payment
warrants against Kolkata High Court Judge CS Karnan- First Platform, which is to launch its UPI facility
Serving High Court Judge facing Arrest Warrant.(BS) to enable customers of nearly 45 banks to
• Bank which topped the list of banks that witnessed most number make payments on a single platform-
of frauds during April-December 2016 with SBI taking Second Chillr.(BL)
spot- ICICI Bank.(BS) • As per World Happiness report, the Happiest
• Thai Contestant Jiratchaya Sirimongkolnawin has been chosen Country on Earth- Norway.(BL)
as the World’s Most Popular Transgender Pageant and crowned • As per Forbes List of the World’s Richest
as- Miss International Queen 2016.(ET) Billionaires, World’s Richest Man- Microsoft
• The Footwear Design and Development Institute is proposed to Co-founder Bill Gates.(BL)
be declared as- Institute of National Importance.(BL) • Transactions, which the government proposes
• State-owned Insurer New India Assurance bagged a Rs.500 Crore to reduce from Rs.3 Lakh to Rs.2 Lakh-
combined cover from Reliance Industries for its onshore and Cash Transactions.(BL)
offshore assets for next financial year- Single Largest • Foreign Bank which has decided to close its
Insurance cover taken by any Corporate in India. (BL) only office in India to cut costs- Russian
• City which has emerged as the Best City in terms of quality of Bank VTB.(BL)
living among Indian Cities for the third time in a row- • As per Forbes List of the World’s Billionaires
Hyderabad.(BL) 2017 consisting 2043 Richest People, Indian
• While Baghdad has been ranked World’s Worst City, Vienna of Richest Person who topped at 33rd ranking-
Austria ranked- World’s Nicest City.(ET) Reliance Industries Chief Mukesh
Ambani. (BS)
• After South Korean and Taiwanese Dollar, the Third Best
Performing Currency in Asia this year has been- India’s • Company on which SEBI has imposed a one-
Rupee.(BL) year ban from trading in equity derivatives-
Reliance Industries Ltd.(BL)
• India ranks 148th in number of women MPs- World Ranking
of Women Parliamentarians.(BL) • Govt. has made Aadhar Mandatory for –
Mobile Phone Connection.(BL)
• River of a Country which has been granted its own identity with
all the corresponding rights, duties and liabilities of a Legal • After getting approval from the Govt., Central
Person- New Zealand’s River Whanganui.(ET) Board of Excise and Customs (CBEC) has
been renamed as- Central Board of Indirect
• State’s First Private Sector Bank since Independence, which has
Taxes and Customs (CBIC).(BL)
been launched by the Kerala Chief Minister- ESAF Small Finance
Bank.(BL) • Under Business Standard Annual Awards for
2016, Banker of the Year is- Aditya Puri,
· Names of 5 Indians including Paytm Founder and CEO Vijay
MD,HDFC Bank. (BS)
Compilation : SP Sharma & Sapandeep Toor Source : Financial Newspapers, Financial News-Magazines & Financial and Institutional Web-sites
 Banking events updatE ♦ April 2017 ♦15
MOCK-TEST lac and above d at bank discretion
PAPER b single rupee deposit balance of 10 All transactions, involving
Questions based on Latest RBI Rs.15 lac and above payment of interest on FCNR
Policy c single rupee term deposit of Rs.1 (B) deposits shall be rounded off
cr lac and above to ____ decimal places:
01 Financial literacy centres are
required to hold special camps for d single rupee deposit balance of a 4 decimal points
a period of one year beginning Rs.1 cr lac and above b 3 decimal points
01.04.2017, on the following 06 According to RBI definition c 2 decimal points
aspects: under RBI (Interest Rate on d at bank discretion
a small entrepreneurs and school Deposits) Directions 2016, 11 A term deposit matured on July
children notice deposit means: 12, being Sunday. It is presented
b senior citizens and self help groups a deposit which is withdrawable for payment by the customer on
c UPI and #99 (USSD) on demand Jul 13. The contracted rate of
d all the above b deposit which is withdrawable interest is 8.5%. Bank changed
on one day notice the interest rate to 8% from Jul
02 Financial literacy centres are
c deposit which is withdrawable 11. In this connection which of
eligible for funding support of
on 3 days notice the following option is
maximum Rs. ___ per financial
d deposit which is withdrawable appropriate?
literacy camps?
on 10 days notice a bank shall pay interest till Jul 12
a Rs.10000
07 According to RBI definition at 8.5%
b Rs.15000
under RBI (Interest Rate on b bank shall pay interest till Jul 12
c Rs.20000 at 8.0%
Deposits) Directions 2016, the
d Rs.25000 c bank shall pay interest till Jul 13
maximum maturity period of a
03 Under financial literacy, the rural term deposit can be: at 8.5%
branches of banks are required to d bank shall pay interest till Jul 13
a one year
conduct one camp per month on at 8.0%
b five years
____, after branch hours
c 10 years 12 On credit balance of which of
beginning 01.04.2017:
d at bank discretion the following current account,
a last working day the bank shall not pay interest in
b last Friday 08 According to RBI definition
under RBI (Interest Rate on case of death of the customer:
c 3rd Friday a individual account of X
Deposits) Directions 2016, the
d 1st Friday b proprietorship account of Z
minimum maturity period of a
04 SLBCs are required to submit to term deposit can be: c joint account of P and Q
Regional Office of RBI, a ____ d all the above
a 7 days
return on financial literacy centres,
b 15 days 13 Interest on domestic rupee
within ___ days.
c 30 days savings deposits shall be
a monthly, 7 days calculated on a daily product
d at bank discretion
b monthly, 15 days basis and a uniform interest rate
09 All transactions, involving
c quarterly, 20 days shall be set on balance up to
payment of interest on deposits
d half-yearly, 20 days _____ , irrespective of the
shall be rounded off to the ____
05 According to RBI definition under for rupee deposits: amount in the account within this
RBI (Interest Rate on Deposits) limit:
a nearest 25 paise
Directions 2016, bulk deposit a Rs.10000
b nearest 50 paise
means: b Rs.50000
c nearest one rupee
a single rupee term deposit of Rs.15
Disclaimer : We have taken every care to provide information, we believe to be accurate We strongly believe that the subscribers
and reliable and do not assume responsibility of any kind nor shall be liable for losses & are the best consultants, we have. Based
consequence arising from use thereof. Since this information is based on the published on their feed back, we keep on redesigning
reports mostly, correctness or otherwise thereof may be verified by the user with the and restructring this publication. Kindly
original sources, in advance. .......................................................................Editor send your suggestions and views.

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16 ♦ Banking events updatE ♦ April 2017
c Rs. 1 lac
d Rs.10 lac
14 On domestic rupee savings
deposits, banks can pay
differential rates of interest for
any end-of-day savings bank
balance ____:
a of Rs.1 lac and above
b exceeding Rs.1 lac
c of Rs.15 lac and above
d exceeding Rs.15 lac
15 All term deposits accepted from
individuals (held singly or jointly)
for amount of ____ must have
premature-withdrawal-facility.
a Rs.15 lac or below
b less than Rs.15 lac
c Rs.1 cr or above
d less than Rs.1 cr
16 Banks can offer term deposits of
______ without pre-mature
withdrawal facility, on which
they can offer differential rate of
interest?
a Rs.15 lac or above
b above Rs.15 lac
c Rs.1 cr or above only
d above Rs.1 cr only
17 If a Term Deposit matures and
proceeds are unpaid, the amount
left unclaimed with the bank shall
attract rate of interest as
applicable to ____:
a FD on date of maturity
b FD on date of original contract
c saving bank
d no interest
18 Interest on savings deposit shall
be credited by banks at ____ :
a monthly or shorter intervals
b quarterly or shorter intervals
c half-yearly or shorter intervals
d at discretion of banks
19 Interest on the minimum credit
balance in the composite cash
credit account of a farmer during
the period from the ____ of each
calendar month shall be paid
a 10th to the last day
b 1st to the last day
c daily balance product
d at bank discretion
20 Banks can offer inexpensive gifts
at the time of accepting deposits,
costing not more than ____ , to
the depositor as per Indian
Banks’ Association.
a Rs.1000
b Rs.500
c Rs.250
d Rs.100
Recalled Questions
21 The cut off limit for classifying
borrowers as non-cooperative
would be those borrowers having
aggregate fund-based and non-
fund based facilities of
Rs._______ from the concerned
bank/FI.
a Rs.1 cr b Rs.2 cr
c Rs.3 cr d Rs.4 cr
e Rs.5 cr
22 TDS is deductible on which of
the following account:
a all types of accounts
b all saving bank accounts
c all NRO accounts including
saving bank, where interest is
paid and resident FDR & RD
accounts where interest exceed
Rs.10000 in a FY
d none of the above
23 Banks/FIs are required to report
information on their non-
cooperative borrowers to
______ on a quarterly basis:
a CIBIL
b Any credit information company
c CRILC
d RBI
24 The bank received garnishee
order on saving bank account of
Mr. Ram at 10.50 a.m., who
deposits Rs. 5000 at 12.10 p.m.:
a The order would apply to this
amount also.
b The bank will refuse to accept
the deposit as no amount can be
accepted after garnishee order
c The order will not apply to this
amount
d order will apply if court is
informed about this
25 For the purpose of change in
classification of an advances
from standard to sub-standard
category due to non-payment of
the loan, in case of crop based
agriculture advances, which of
the following is taken:
a two harvest seasons
b two crop seasons
c one crop season
d two crop seasons for short
duration crop and one crop
season for long duration crop
e two harvest seasons with
maximum of one year.
26 As per _____, the banks cannot
allow loans and advance to their
Directors and the firms in which
they hold substantial interest:
a Section 19 (2) of RBI Act
b Section 19 (2) of Banking
Regulation Act
c Section 20 (1) of RBI Act
d Section 20 (1) of Banking
Regulation Act
27 Mr N issued cheque for Rs 8000
and left some blank space after
the amount in words and figures
and gave it to his clerk. His clerk
added one zero after amount
written in figures and Y in the
amount written in words,
making it as eighty and 80000.
The account is debited for
80000. Who is responsible?
a there is material alteration and
bank is negligent. Hence bank
liable.
b there is forgery due to which the
 Banking events updatE ♦ April 2017 ♦17
bank is liable wife of deceased being legal heir Regulation Act, the loans in the
c customer is negligent in writing of the former. name of bank directors can be
the cheque due to which the c the payment will not be made as remitted (written off) with
alteration has taken place, hence with the death of the former, permission of which of the
customer is liable for the loss. nomination has been cancelled. following:
d since bank has paid the amount d the payment will not be made as a Management Committee within
of an altered cheque and customer with the death of the former, the bank
was negligent, the loss to be borne survivor gets the authority to b Board of Directors of the bank
by both of them equally. operate the account and nominee c Reserve Bank of India
28 A loan of Rs.4 lac was sanctioned comes in to picture only when d cannot be written off
during April 2013 and it started none of the account holders is 34 A business firm has been
showing irregularity in the month available sanctioned working capital limits
of Oct 2013. This account will 30 Prepaid Payment Instrument of Rs.6 lac at 25% margin by the
be classified as ____ as on Mar (PPI) for Mass Transit Systems bank and book debt limit of Rs.4
31, 2016: (PPI-MTS) issued may be lac at 50% margin. What will be
a special mention account reloadable in nature and at no total margin requirement to avail
b sub-standard account point of time the value / balance the limit fully:
c doubtful up to one year in PPI can exceed the limit of a 4 lac b 5 lac
____:
d doubtful above 1 year but up to 3 c 6 lac d 6.5 lac
year a Rs.1000 b Rs.2500
e 8 lac
29 Corporate Bank had opened a c Rs.2000 d Rs.10000
35 What is the maximum time
saving bank account in the name 31 For service oriented micro available to a customer for
of Mr. Subramanian and enterprises, the investment lodging complaint to
Murlidhar operated as ‘former or ceiling in equipment excluding Ombudsman:
survivor ’. The wife of Mr. land and building is:
a 1 month from date of complaint
Subramanian, who is nominee in a Rs.20 lac b Rs.3 lac made to bank and no reply
the account comes to your c Rs.5 lac d Rs.10 lac received
branch and informs you that Mr. 32 As per provisions of which of the b 1 month from date of complaint,
Subramanian has expired a month following, the nominated bank reply received but customer not
back. She also hands over the gets a period of ____ days to satisfied
death certificate and requests for verify the documents drawn c 1 year from date of receipt of
payment of the balance. under a documentary credit: reply from the bank but customer
a the payment to the nominee will a RBI guidelines, 7 banking days is not satisfied
be made on proper identification b FEDAI rules, 5 banking days d 1 year from date of lodgement
as she is also having the death c UCPDC, 5 calendar days of complaint with the bank + 1
certificate.
d none of these is correct month, where reply has not been
b the payment will be made to the received.
33 As per Section 20-A of Banking
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 18 ♦ Banking events updatE ♦ April 2017
e c or d d exposure to NPA account in d 25%
36 CGTMSE amount of guarantee housing finance loans 42 Risk Weightage on Consumer
cover for a balance of Rs. 80 39 If director of another bank Credit/Credit Cards, for capital
lakhs in case of an eligible normal requires a loan of Rs._____, the adequacy ratio purpose is:
borrower in other than NE states, loan can be sanctioned by Board a 75% b 100%
will be: of Directors or Management c 125% d 150%
a Rs.55 lac Committee:
43 In a partnership firm, the no. of
b Rs.50.00 lac a up to Rs.10 lac partners cannot go beyond 100
c Rs.37.50 lac b Rs.25 lac and above depending upon the nature of
d Rs.22.50 lac c less than Rs.25 lac business. The provision regarding
37 Ravi your customer of a saving d up to Rs.50 lac this maximum no. of partners is
bank account is approached by a 40 In a public limited company, mentioned in:
person called Ram to give an maximum and minimum no. of a Indian Partnership Act 1932
introduction to enable him to share-holders is: b Indian Contract Act 1972
open a saving bank account with
a 50 and 10 c Companies Act 2013
your branch to which he agrees.
Subsequently it is proved that b No limit and 7 d Banking Regulation Act 1949
Ravi gave introduction though he c 100 and 2 44 A kite flying transaction
really did not know much about d 1000 and 100 represents which of the
Ram. In such situation: e any number at the discretion of following:
a Bank can hold Ravi responsible the company a when overdraft is allowed by a
as he carelessly gave the 41 A uniform margin of _____ is to bank to a firm
introduction be applied on all advances / b when additional loan is allowed
b Bank cannot hold Ravi financing of IPOs / issue of by a bank to a firm to cover the
responsible as Ravi has not guarantees on behalf of share and amount of irregularity in the
violated introduction rules stockbrokers or on behalf of account
c Bank can recover 50% of amount commodity brokers in favour of c when a bill is drawn without
from Ravi commodity exchanges viz. consideration by seller of goods
d any of the above National Commodity & on buyer of good.
38 For which of the following Derivatives Exchange (NCDEX), d when loan is allowed for low
category of loans the risk Multi Commodity Exchange of amount transaction
weightage for Capital Adequacy India Ltd. (MCX) and National 45 Minimum maturity period of
ratio purpose is 125%: Multi Commodity Exchange of which of the following
India Ltd. (NMCEIL): instruments is not 7 days:
a exposure to capital market
a 50% a certificate of deposit
b exposure to real estate
b 40% b non-convertible debenture
c loans to strategically important
non-deposit taking NBFCs c 30% c commercial paper
d bank FDR
Name:____________________________________________________
SUBSCRIPTION FORM

Address:__________________________________________________ Answers
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06 b 07 d 08 a 09 c 10 c
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EMail Id_____________________________Mobile:________________ 21 e 22 c 23 c 24 c 25 d
DraftNo___________Date_________drawn on___________Bank, for Rs______fvg 26 d 27 c 28 c 29 d 30 c
Banking & Management Academy. PERIOD from ________ to________ 31 d 32 d 33 c 34 c 35 e
( Old Subscn No. _______ ) 36 b 37 b 38 a 39 b 40 b
41 a 42 c 43 c 44 c 45 b

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 Banking events updatE ♦ April 2017 ♦19
Pradhan Mantri Awas Yojna (Urban) - Housing for All Prohibitions and exemption on
on accetance of Deposits
The scheme was launched w.e.f. 17.06.15 by the Ministry of Housing and Banks cannot:
Urban Poverty Alleviation, Govt. of India. The scheme provides Credit Linked (a) pay any fees /commission / brokerage
Subsidy for economically weaker section (EWS) and low income groups or on deposits in any form or manner.
(LIG), called CLSS for EWS-LIG. (b) offer prize/lottery/free trips etc or any
other initiative for mobilizing deposits.
Wef 01.01.2017, the benefit of subsidy has been extended to Middle Income Inexpensive gifts costing not more than
Group (MIG) also (initially for one year). The summary of the scheme for Rupees 250 can be given to depositors at
MIG (CLSS-MIG) is provided as under: the time of accepting deposits.
(c) grant advances against term deposits
Eligible borrowers : of other banks.
• Borrower should not already own, a pacca house in his own name or in (d) open a savings deposit a/c other than
the name of his family members (i.e. wife, husband and unmarried individuals, Karta of HUF and organisations/
agencies listed below:
daughters and sons).
(1) Primary Co-op Credit Society financed by
• He should not have availed subsidy assistance, under Central schemes. bank.
• The loan should be for construction/acquisition of a new house including (2) Khadi and Village Industries Boards.
(3) Agriculture Produce Market Committees.
repurchase. A person who has already applied the loan or whose application (4) Societies under Societies Registration Act,
has been approved since January 2017, is also eligible. 1860 or any other corresponding law in force
in a State or a UT except societies registered
Coverage : All statutory towns as per Census 2011 and towns notified under the State Co-operative Societies Acts
subsequently, are covered under the scheme. and specific state enactment creating Land
Scheme eligibility: Mortgage Banks.
(5) Companies licensed by the Central Govt.
There are two streams for this purpose i.e. MIG-1 and MIG-2 under Section 8 of Companies Act, 2013 or
Particulars MIG-1 MIG-2 Section 25 of Companies Act, 1956 and
permitted, not to add to their names the words
Annual family income Above Rs.6 lac Above Rs.12 lac
‘Limited’ or the words ‘Private Limited’.
up to Rs.12.00 lac up to Rs.18.00 lac
(6) Institutions other than those mentioned u/
Interest subsidy (% p.a.) 4% 3% s 26(h), whose income is exempt from payment
Loan tenure 20 years or the one 20 years or the one of Income-tax under Income-Tax Act, 1961.
opted by borrower, opted by borrower, (7) Govt. departments / bodies / agencies for
grants/ subsidies released for implementation
whichever is lower. whichever is lower. of various programmes / Schemes sponsored
Eligible home loan Rs.9 lac Rs.12 lac by Central Government / State Governments
Max subsidity amount Rs.2.35 lac Rs.2.30 lac subject to production of an authorization from
the respective Central / State Government
Carpet Area 90 sq meter 110 sq meter departments to open savings bank account.
Discount rate for NPV 9% 9% (8) Development of Women and Children in
calculation to calculate Rural Areas (DWCRA).
interst subsidy (9) SHGs registered or unregistered, engaged
in promoting savings habits among their
Operational rules : members.
1. Subsidy is available for loan up to above extent only. Loan amount beyond (10) Farmers’ Clubs – Vikas Volunteer Vahini .

Diploma in
this would be non-subsidised.
2. HUDCO and NHB are the channelizing nodal agencies (CNA) that will
provide interest subsidy to primary lending institutions (PLI). 0.1% of total
funds disbursed by CNA, will be paid to CNA as administrative charges.
Banking & Finance
It is a desirable qualification for
3. All banks, HFCs, NBFCs and other institutions identified by the Ministry recruitment of PO or Clerk (as per IBA).
are eligible to be categorized as primary lending institutions (PLIs). Benefits : Enhanced chances of selection.
• Financial & promotion benefit on joining
4. The total interest subsidy accruing on these loan amounts, will be a bank • It is equal to JAIIB. Hence direct
paid to the beneficiaries up front, in one go, which would reduce the exam of CAIIB can be attempted.
• 3 papers (objective-type) can be
burden of EMI on the user.
passed in 2 half-yearly attempts.
5. Borrower’s Aadhaar number will be linked to loan account to avoid • No negative marking.
duplication. • Exam conducted half-yearly by IIBF.
6. PLIs will not charge any processing fee. They will get Rs.2000 in lieu of • Eligibility is 10+2 pass.
processing fee.
For BEST & EASY STUDY KITS or 40
7. CLSS-MIG will be monitored by Ministry of Housing and also SLBC. hours E-Learning. Call us 01722665623
 Banking events updatE ♦ April 2017 ♦ 20 Registration RNI No. 67802/98 Postal Regn No.CHD /0001/2015-17
RA UNDP Human Development Report 2016 DATA COLUMN
The Human Development Index (HDI) is a measure for assessing progress Business of Banks
(Rs.in cr) Apr01'16 Mar17'17
made by different countries in 3 basic dimensions of human development Aggregate deposits 9720820 10542050
ie. (1) a long and healthy life (life expectancy), (2) access to knowledge Cash in hand/RBI 534440 482320
Investments 2595330 3207660
and (3) access to a decent standard of living. Bank Credit: 7529990 7565670
Countries are ranked, based on scale ranging between 0 (low) to 1 (high). -Food 101210 55860
-Non-Food 7428790 7509810
The Human Development Index (HDI) was unveiled during March 2013, Cash-Deposit Ratio 4.80 4.55
Investment-Deposit 30.03 30.36
as part of the Human Development Report (HDR) 2016, titled Human Credit-Deposit 77.92 71.82
Development for Everyone published by the United Nations Development Money Stock
(Rs.in cr) Mar31'16 Mar17'17
Programme (UNDP). M3 (Out of which) 11617620 12430820
Salient features of HDI: (a) Currency with public 1597250 1130900
(b) Demand deposits-Banks 989830 1195020
India was ranked 131 in the 2016 (compared with 130 in 2015) Human (c) Time Deposits - Banks 9015080 10086710
(d) Other deposits with RBI 15450 18190
Development Index (HDI) among the 188 countries. Sources of Money Supply
India scored 0.624 (0.609 in 2015) and was placed in medium human (a) Net Bank credit to Govt 3238480 4173510
(b) Bank credit to Comrcl sector 7803070 8077230
development category. (c) Net Forex assets of Banks 2533720 2621020
Important Banking Indicators
Top three countries: These include Norway (0.949 score), Australia Statutory Liquidity Ratio 20.50% (07.01.2017)
(0.939) and Switzerland (0.939). Cash Reserve Ratio 04.00% (15.02.2013)
Overnight LAF (of NDTL) 0.25%
Ranking of SAARC countries: Sri Lanka (73) and Maldives (105) were 14-days term Repo(of NDTL)0.75%
placed in “high human development” category, followed by India (131), Repo Reverse Repo Rate 05.75% (04.10.2016)
Rate 06.25% (04.10.2016)
Bhutan (132), Bangladesh (139), Nepal (144), Pakistan (147) and MSF Rate 06.75% (04.10.2016)
Afghanistan (169). Bank Rate 06.75% (04.10.2016)
Small Savings Interest Rates
BRICS Countries: India ranks lowest among BRICS nations. Russia PPF 7.9% (01.04.2017)
NSC 7.9% (01.04.2017)
(49), Brazil (79), China (90), South Africa (119) and India (131). Sukanya Smridhi 8.4% (01.04.2017)
India related information : India’s HDI value increased from 0.428 in Senior Citizen Saving 8.4% (01.04.2017)
Capital & Money Market Indicators
1990 to 0.624 in 2016. However, its average annual growth in HDI (1990- Parameter end-Mar16 Mar17
2015) was higher than that of other medium HDI countries. Dollar-spot TT (Rs.) 68.03 64.84
BSE - Sensex (points) 24551 29620
Life expectancy at birth: In India, it has increased from 68 years to an NSE - Nifty(S&P CNX) 7455 9174
average of 68.3 years which is 69.9 years for women and 66.9 years in Foreign reserves (Million $) 355947
Gold /Oz in USD) 1211
367932
1244
case of men.
Access to knowledge: India’s expected years of schooling remains at INDIAN ECONOMY-IMPORTANT PARAMETERS
11.7 years, while mean years of schooling increased from 5.4 to 6.3 RBI's growth estimate for 2016-17 : 7.6%
GDP growth-2014-15 (revised estimate) : 7.6%
years. GDP@constant mkt prices (cr) : 10656925
India’s Gross National Income (GNI) based on per capita purchasing GVA@2011-12 basic prices (cr) : 9857672
GDP projected by Govt. for 2017-18 : 16847455
power parity (PPP): It has risen from $5,497 to $5,663. Fiscal Deficit Target (2017-18) 3.2% of GDP : 546532 cr
Gender Inequality Index (GII): India ranked 125 among 159 countries. Revenue Deficit Target (2017-18) 1.9.% of GDP : 321163 cr
Only 12.2% of Parliament seats are held by women. Further, 8% of Wholesale Price Index
Money Supply (M3) expansion
: 1.5%
: 12.9%
women above the age of 15 years, are part of India’s labour force — Exports during 2015-16 : 261.2 bn
compared to 79.1% men. The ratio of maternal mortality is 174 against Imports during (2015-16) : 379.6 Bn
Export target - 2015-16 (in $) : 310 bn
every 100,000 live births.
India's share in world merchandise export : 1.70%
Inequality-adjusted Human Development Index (IHDI): It is India's currency rating (S&P) : BB Postv
India's external debt (Sep 2016) US $ : 484.3 Bn
difference between the HDI and IHDI, expressed as a percentage of the
Tax-GDP ratio (2014-15) : 9.93%
HDI, indicating the loss in human development due to inequality. Apr- Feb17:Export $ 245.4 bn$ Imports : 340.7 bn
India’s HDI was pegged at 0.624, but its value falls 27.2% after being Per capita Income 2015-16 (Rs.) : 93293
Indian economy's ranking in PPP terms : 3rd
adjusted for inequalities, resulting in a HDI value of 0.455. Life expectancy Indian economy's ranking in world in value: 10th
adjusted with inequalities between 2010 and 2015 fell 24%, resulting in a
value of 0.565. The percentage of inequality in education in 2015 was OUR PUBLICATIONS : REFER PAGE 9,11
39.4% or 0.324 and inequality in income 16.1% or 0.512. DATE OF DESPATCH - Apr 7 / 10, 2017 •
Published by Chand Singh at 1008, Sector 45-B, Chandigarh - Printed by Chand Singh at Golden Graphics 'n' Printers, Industrial Area, Ram Darbar, Chandigarh Editor - Chand Singh