Definition of a Bank

"A bank is an establishment which makes to individuals such advances of money as may be required and safely made, and to which individuals entrust money when not required by them for use."

TYPES OF BANKS - Deposit Banks -: These banks accept deposits from the public and lend them to needy parties. Since their deposits are for short period only, these banks extend loans only for a short period. - Industrial Banks -: They provide long term loans to industries. Besides, they buy shares and debentures of companies, and enable them to have fixed capital. - Savings Banks -: They encourage savings of the poor and middle class people. In India we do not have such special institutions, but post offices perform such functions. - Agricultural Banks -: These banks meet the credit requirements of the farmers through term loans, viz., short, medium and long term loans. - Exchange Banks -: These banks finance mostly for the foreign trade of a country. Their main function is to discount, accept and collect foreign bills of exchange. They buy and sell foreign currency and thus help businessmen in their transactions.
STRUCTURE OF BANKING IN INDIA

At the time of independence Indian banking system was not sound. Hence, in 1949 two major actions were taken which were very important from the point of view of structural reforms in the banking sector. First, the Banking Regulation Act was passed. It gave extensive regulatory powers to Reserve Bank of India over the commercial banks. Another development of no less importance was the nationalisation of the RBI.

-- Indian banking system comprises of both organised and unorganised banks. Unorganised banking includes indigenous bankers and village money-lenders. Organised banking includes Reserve Bank of India, Commercial Banks, (including Foreign Banks), Development Banks, Exim Bank, Co-operative Banks, Regional Rural Banks, National Bank for Agriculture and Rural Development, Land Development Banks etc.
BANKING SECTOR

1. Indigenous Banks Indigenous bankers are individuals or private firms which receive deposits and give loans and thereby operate as banks. Since their activities are not regulated, they belong to the unorganised segment of the money market. -- Functions of Indigenous Bankers

- Accepting Deposits - Advancing Loans - Business in Hundies - Acceptance of Valuables for Safe Custody - Non-banking Functions 2. Moneylenders The moneylenders may be classified into two categories: (a) the professional moneylenders, and (b) the non-professional moneylenders. - Professional moneylenders are those persons whose business is only lending of money. The Maharajas, Sahukars and Banias are professional moneylenders. - Non-professional money lenders are those persons who combine moneylending with other activities. They do not depend entirely on moneylending business.

3. Co-operative Banks Co-operative banks is an institution established on the cooperative basis and dealing in ordinary banking business. Like other banks, the co-operative banks collect funds through shares. They accept deposits and grant loans. They are generally concerned with the rural credit and provide financial assistance for agricultural and rural activities.

4. Land Development Bank

There are two types of land development banks in the country. At state level, there are Central Land Development Banks, and under each central bank, there are primary land development banks. In some states, there is one Central Land Development Bank for the state which has branches all over the state.

5. Regional Rural Banks

The Government of India promulgated on September 26, 1975, the Regional Rural Bank Ordinance, to set up regional rural banks throughout the country; the Ordinance was replaced by the Regional Rural Banks Act, 1976. The main objective of the regional rural banks is to provide credit and other facilities particularly to the small and marginal farmers, agricultural labourers, artisans and small entrepreneurs so as to develop agriculture, trade, commerce, industry and other productive activities in rural areas.

6. NABARD

The National Bank for Agriculture and Rural Development (NABARD) was set-up on 12th July, 1928 under an Act of Parliament. It has been established by merging the Agricultural Credit Department, and Rural Planning and Credit Cell of the Reserve Bank and the entire undertaking of Agricultural Refinance and Development Corporation. Hence, the National Bank has to perform a dual function: (a) The function of the Reserve Bank as an apex institution, and (b) The function of Agricultural Refinance and Development Corporation as a refinance institution.

-- Functions of NABARD - Apex Institution for Rural Finance - Refinance Institution - Credit Functions - Contribution of Share Capital - Investment in Securities - Conversion and Rescheduling Facilities - Financial help to Non-agricultural Sector - Regulatory Function 7. Commercial Banks A commercial bank may be defined as a financial institution which accepts deposits against which cheques can be drawn, lends money to commerce and industry and renders a number of other useful services to the customers and the society. Commercial banks borrow money from those who have surplus funds and lend to those who need funds for commercial and industrial purposes. Thus, they act as dealers in loanable funds of the society. Commercial banks receive deposits in the form of fixed deposits, savings bank accounts and current accounts and advance money, generally for short periods,

in the form of cash credits, overdrafts and loans. They also render a number of service to their customers, such as collection of cheques, safe custody of valuables, remittance facilities and payment of insurance premium, electricity bills, etc. The commercial banks perform the following major functions: (a) Receiving deposits from the public and the business firms. (b) Lending money to various sections of the economy for productive activities. (c) Issue of demand drafts, travellers cheques, bank cards, etc., for the smooth remittance of funds. (d) Provision of locker facility to the customers. (e) Safe custody of documents, ornaments and other valuables of customers. (f) Payment of telephone, electricity and water bills on behalf of the customers. (g) Collection of cheques of the customers. (h) Issue of letters of credit. (i) Acting as trustees, executors of wills, etc. => Nationalisation of Banks The Government of India nationalised 14 major banks in the country in July 1969 and another 6 banks in 1980. The nationalisation of banks was described as historic, momentous, bold and timely by certain sections of the people. The State Bank of India and its seven subsidiaries had already been nationalised. The regional rural banks from their very inception are in the public sector. Thus about 90% of the countrys commercial banking system is now in the public sector.

RESERVE BANK OF INDIA

The Reserve Bank of India is the kingpin of the Indian money market. It issues notes, buys and sells government securities, regulates the volume, direction and cost of credit, manages foreign exchange and acts as banker to the government and banking institutions. The Reserve Bank is playing an active role in the development activities by helping the establishment and working of specialised institutions, providing term finance to agriculture, industry, housing and foreign trade. In spite of many criticisms, it has successfully controlled commercial banks in India and has helped in evolving a strong banking system.

-- Capital Originally, the Reserve Bank was constituted as a shareholders bank, based on the model of leading foreign central banks of those days. The banks fully paid-up share capital was Rs. 5 crores divided into shares of Rs. 100 each. Of this, Rs. 4,97,80,000 were subscribed by the private shareholders and Rs. 2,20,000 were subscribed by the Central Government for disposal of 2,200 shares at part to the Directors of the Bank (including members of the Local Boards) seeking the minimum share qualification. The share capital of the bank has remained unchanged until today. As per the Reserve Bank of India Act, the organisational structure of the Reserve Bank comprises:

(A) Central Board - One Governor and four Deputy Governors - Four Directors Nominated from the Local Boards - Ten other Directors - One Government Official (B) Local Boards The Reserve Bank of India is divided into four regions : the Western, the Eastern, the Northern and the Southern regions. For each of these regions, there is a Local Board, with headquarters in Mumbai, Kolkata, New Delhi and Chennai.

=> FUNCTIONS

(A) TRADITIONAL FUNCTIONS - Monopoly of Note Issue - Banker to the Government - Bankers Bank - Lender of the Last Resort - National Clearing House - Credit Control - Custodian of Foreign Exchange Reserves - Collection of Data and Publications (B) PROMOTIONAL FUNCTIONS - Agricultural Credit - Industrial Finance - Export Promotion - Helping Co operative sector - Expansion of Banking sysytem (C) SUPERVISIORY FUNCTIONS - Licensing of Banks - Approval of Capital, Reserves and Liquid Assets of Bank

- Branch Licensing Policy - Inspection of Banks - Control Over Management - Control Over Methods - Audit - Credit Information Service - Control Over Amalgamation and Liquidation - Deposit Insurance - Training and Banking Education
CREDIT CONTROL

Commercial banks grant loans and advances to merchants and manufacturers. They create credit or bank deposits in the process of granting loans. In modern times, bank deposits are regarded as money. They are as good as cash. They can be used for the purchase of goods or in payment of debts. But excessive creation of credit by commercial bank leads to inflation. Inflation has serious social and economic consequence. So, a Central Bank must control the credit created by commercial banks in order to maintain the value of money at a stable level.

=> Weapons of Credit Control

Various weapons or methods or instruments are available to the Reserve Bank of India to control credit creation or contraction by commercial banks. These methods are divided into two categories:

(A) Quantitative or general methods or instruments.

1. Bank Rate: The bank rate is the rate of interest at which the Reserve Bank of India makes advances to the commercial banks against approved securities or rediscounts the eligible bills of exchange and other commercial papers. The Reserve Bank of India Act, 1934 defines the bank rate as the standard rate at which it (the Bank) is prepared to buy or rediscount bills of exchange or other commercial paper eligible for purchase under the Act. The change in the bank rate leads to changes in the market rates of interest i.e., short-term as well as long-term interest rates. If bank rate is raised rates of interest in the money market including the lending rates of commercial banks also rise. So the cost of credit rises. The demand for bank loans generally falls and so the demand for goods will also

fall. Thus inflation can be checked or controlled by raising bank rate. Similarly, deflation (i.e., state of falling prices) can be checked by lowering the bank rate. So the bank rate acts as a pace-setter in the money market. 2. Open Market Operations:

Open market operations consist of buying and selling of Government securities by the Reserve Bank. Open market operations have a direct effect on the availability and cost of credit. When the central bank purchases securities from the banks, it increases their cash reserve position and hence, their credit creation capacity. On the other hand, when the central bank sells securities to the banks, it reduces their cash reserves and the credit creation capacity. In India, the open market operations of the Reserve Bank has not been so effective because of the following reasons:

(a) Open market operations are restricted to government securities. (b) Gift-edged market is narrow. (c) Most of the open market operations are in the nature of switch operations (i.e., purchasing one loan against the other). 3. Cash-Reserve Requirement (CRR): The central bank of a country can change the cash-reserve requirement of the commercial banks in order to affect their credit creation capacity. An increase in the cash-reserve ratio reduces the excess reserves of the banks and a decrease in the cash-reserve ratio increases their excess reserves. The variability in cash-reserve ratios directly affects the availability and cost of credit. 4. Statutory Liquidity Ratio (SLR): Under the Banking Regulation Act, 1949, banks are required to maintain liquid assets in the form of cash, gold and unencumbered approved securities equal to not less than 25% of their total demand and time deposits. This minimum statutory liquidity ratio is in addition to the statutory cashreserve ratio. Maintenance of adequate liquid assets is a basic principle of sound banking. The Reserve Bank has been empowered to change the minimum liquidity ratio.

(B) Qualitative or selective methods or instruments. Selective credit controls are qualitative credit control measures undertaken by the central bank to divert the flow of credit from speculative and unproductive activities to productive and more urgent activities. Selective credit controls are better than the quantitative credit controls in

many respects. They encourage credit to essential industries and at the same time discourage credit to non-essential industries. Similarly, they encourage productive activities and at the same time discourage speculative activities. In a developing economy like India, qualitative credit controls are mainly intended for the following purposes: (a) To prevent anti-social use of credit like speculative hoarding of stock. (b) To divert credit from unproductive activities to productive activities. (c) To divert credit from non-essential to essential industries. (d) To encourage credit for certain sectors like priority sector.
BANKING Terminology

1. Bank: A bank is a commercial institution which deals with money and credit.

2. Co-operative banks: Co-operative banks are a group of financial institutions organised under the provisions of the Co-operative Societies Act of the states.

3. Commercial banks: The banks which perform all kinds of banking business and generally finance trade and commerce are called commercial banks.

4. Exchange banks: Banks which deal in foreign exchange and specialise in financing foreign trade are called exchange banks.

5. Central bank: Central bank is the apex institution which controls, regulates and supervises the monetary and credit system of the country.

6. Industrial banks: Bank which provide long-term credit to industries for the purchase of machinery, equipts etc., are known as industrial banks.

7. Demand deposits: Deposits which can be withdrawn by the depositor at any time by means of cheques are known as demand deposits.

8. Time deposits: Deposits which are repayable after the expiry of a specific period are known as time deposits.

9. Cash credit: It is a type of loan which is given to the borrower against his current assets, such as shares, stocks, bonds etc.

10. Branch banking: It is banking system under which a big bank as a single institution and under single ownership operates through a network of branches spread all over the country.

11. Unit banking system: It is a system under which a single bank operates through a single office.

12. Chain banking: Chain banking refers to the system in which two or more banks are brought under common control by a device other than the holding company.

13. Group banking: Group banking refers to a system of banking in which two or more banks are directly controlled by a corporation or an association or a business trust.

14. Mixed banking: When the commercial banks provide both short-term and longterm finance to commerce and industry, it is called mixed banking.
Like? Quote

shweta sharma - Dec 17, 2011

15. Credit creation: The power of commercial banks to expand deposits through loans, advances and investments is known as credit creation.

16. Scheduled banks: Scheduled banks are those commercial banks which are included in the second schedule of the Reserve Bank of India Act, 1934 and have a paid-up capital and reserves of not less than Rs. 5 lakhs.

17. Non-scheduled banks: Non-scheduled banks are trade banks. Their paid-capital and reserves less than Rs. 5 lakhs and are not included in the second schedule of the Reserve Bank of India Act, 1934.

18. Public sector banks: These are owned and controlled by the Government.

19. Private sector banks: These banks are owned by the private individuals or corporations but not by the Government or co-operative societies.

20. NABARD: National Bank for Agriculture and Rural Development is essentially a development bank for promoting agricultural and rural development.

21. Regional rural banks: Regional Rural Banks are a new category of banks set up with the objective of increasing the local involvement of banks to meet the credit requirements of weaker sections and small entrepreneurs in the rural areas.

22. Land Development Bank: It is a co-operative bank which provides long-term agricultural credit.

23. Indigenous banker: An indigenous banker is an individual or private firm receiving deposits and dealing in hundies or lending money. 24. Money-lender: The money-lenders are those whose primary business is money lending.

25. Development banks: A development bank is a multi-purpose financial institution which is concerned mainly with providing financial assistance to business units.

26. Money market: Money market is the market in which short-term funds are borrowed and lent.

27. Capital market: Capital market is the market in which medium-term and long-term bonds are borrowed and lent.

28. Bill market: Bill market refers to the market for short-term bills generally of three months duration.

29. Treasury bill: A treasury bill is a kind of financial bill or promissory note issued by the Government to raise short-term funds. 30. Commercial paper: Commercial paper is a short-term negotiable money market instrument. 31. Discount and Finance House of India: Discount and Finance House of India is setup in 1988 as the apex body in the Indian market for developing a secondary market for money instruments. 32. Certificate of Deposit: It is a money market instrument introduced in India in June 1989, with a view to further widen the range of money market instruments and to give investors flexibility in the development of their short-term funds. 33. Lead bank: The Lead bank is the bank which adopts a district and integrate its schemes with district plans for an effective distribution of credit, along with the expanded banking facilities as per the local needs. 34. State co-operative bank: It is the apex institution in the three-tier co-operative credit structure, operating at the district level. 35. Central co-operative bank: It is in the middle of the three-tier co-operative credit structure, operating at the district level. 36. Derivative deposits: Deposits which arise on account of granting loans or purchase of assets by a bank are called derivative deposits. 37. Primary deposits: Deposits which arise when cash or cheques are deposited by customers in a bank are called primary deposits. 38. Innovative banking: Innovative banking implies the application of new techniques, new methods and novel schemes in the areas of deposit mobilisation, deployment of credit and bank management. 39. Merchant banking: Merchant banking refers to specialisation in financing and promotion of projects, investment management and advisory services.

40. Deposit mobilisation: It implies tapping of potential savings and putting them into banking sector for productive uses. 41. Lien: A lien is the right of person or a bank to retain the goods or securities in his possession until the debt due to him is settled. 42. Negative lien: It is non-possessory lien.

43. Lunatic: A lunatic is a person of unsound mind. 44. Negotiable instrument: Negotiable instrument means promissory note, bill of exchange or cheque payable either to order or to bearer. 45. Post-dated cheque: A cheque which bears a date subsequent to the date of issue is said to be post-dated. 46. Ante-dated cheque: A cheque, which bears a date before the date of issue, is said to be antedated. 47. Bankers cheques: A bankers cheque is one which is drawn by a banker upon himself. 48. Bank draft: A bank draft is an order to pay money drawn by one office of a bank upon another office of the same bank for a sum of money payable to order or on demand. 49. Stale cheque: A cheque is regarded overdue or stale when it has been in circulation for an unreasonable period of time. 50. Negotiation: Negotiation is the process by which the ownership of the credit instrument is transferred from one person to another. 51. Assignment: Assignment means transfer of ownership in the article by means of a written and stamped document according to the provisions of the transfer of property act. 52. Endorsement: Endorsement means writing of a persons name on the back of the instrument or on any paper attached to it for the purpose of negotiation. 53. Crossing: The act of drawing two transverse parallel lines on the face of a cheque is called crossing of the cheque. 54. Holder: A holder means any person entitled in his own name to the possession of the negotiable instrument and to recover or receive the amount due thereon from the parties liable thereto. 55. Material alteration: An alteration which alters the business effects of the instruments if used for any business purpose is called material alteration. 56. Countermands the payment: Countermand means the instruction conveyed by the drawer of a cheque to drawee bank not to pay the cheque, when it is presented for payment. 57. Conversion: Conversion is the unlawful taking, using, disposing or destroying of goods, which is inconsistent with the owners right of possession. 58. Noting: Noting is the authentic and official proof presentment and dishonour of a negotiable instrument. 59. Protest: Protest is a formal certificate of dishonour issued by the Notary public to the holder of a bill or promote, on his demand. 60. Escrow: A negotiable instrument delivered to a person conditionally or for safe custody, but not for the purpose of negotiation, is called escrow.

61. Inchoate instrument: It is an incomplete instrument. 62. Margin: Margin means the excess of market value of the security over the advance granted

against it. 63. Documents of title to goods: Documents, which in the ordinary course of trade, are regarded as proof of the possession or control of goods are called documents of title to goods. 64. Stock exchange securities: Securities which are regularly bought and sold in a stock exchange are called stock exchange securities. 65. Consortium advances: If several banks join together according to their capacities in meeting the credit needs of large borrowers, such advances are known as consortium advances. 66. Garnishee order: Garnishee order is a judicial order served on a bank to suspend its dealings with a customer. 67. Term loans: Loans given for long periods are called term loans.
Union Budget

Under Article 112 of the constitution, a statement of estimated receipts and expenditure, called the Annual Financial Statement, has to be placed before Parliament for each financial year. This Statement is the main budget document. It is an estimate of the Governments revenue and expenditure at the end of a fiscal year, which runs from April 1 to March 31. A Union Budget is the most comprehensive report of the Governments finances, in which revenues from all sources and outlays to all activities are consolidated. The budget also contains estimates of the Governments accounts for the next fiscal, called budgeted estimates.
Capital Budget

The capital budget consists of capital receipts and payments. Capital receipts are Government loans raised from the public, Government borrowings from the Reserve Bank and treasury bills, divestment of equity holding in public sector enterprises, loans received from foreign Governments and bodies, securities against small savings, State provident funds, and special deposits.

Capital payments refer to capital expenditures on construction of capital projects and acquisition of assets like land, buildings machinery and equipment. It also includes investments in shares, and loans and advances granted by the Central Government to State Governments, Government companies, corporations and other parties.
Revenue Budget

The revenue budget consists of revenue receipts of the Government and its expenditure. Revenue receipts are divided into tax and non-tax revenue. Tax revenues constitute taxes like income tax, corporate tax, excise, customs, service and other duties that the Government levies. The non-tax revenue sources include interest on loans, dividend on investments etc. Revenue expenditure is the expenditure incurred on the day-to-day running of the Government and its various departments, and for services that it provides. It also includes interest on its borrowings, subsidies and grants given to State Governments and other parties. This expenditure does not result in the creation of assets. In case the difference between revenue receipts and revenue expenditure is negative, there is a revenue deficit. It shows the shortfall of the Governments current receipts over current expenditure. If the capital expenditure and capital receipts are taken into account too, there will be a gap between the receipts and expenditure in a year. This gap constitutes the overall budgetary deficit, and it is covered by issuing 91day Treasury Bills, mostly held by the Reserve Bank. Revenue surplus is the excess of revenue receipts over revenue expenditure.
Fiscal Deficit

This is the gap between the Governments total spending and the sum of its revenue receipts and nondebt capital receipts. It represents the total amount of borrowed funds required by the Government to completely meet its expenditure. The gap is bridged through additional borrowing from the Reserve Bank of India, issuing Government securities etc. Fiscal deficit is one of the major contributors to inflation.
Primary Deficit

The primary deficit is the fiscal deficit minus interest payments. It tells how much of the Governments borrowings are going towards meeting expenses other than interest payments.
Finance Bill

The Government proposals for the levy of new taxes, alterations in the present tax structure, or continuance of the current tax structure are placed before the Parliament in this bill. The bill contains amendments proposed to direct and indirect taxes. Direct and Indirect Taxes Direct taxes are levied on the incomes of individuals and corporates. For example, income tax, corporate tax etc. Indirect taxes are paid by consumers when they buy goods and services. These include excise duty, customs duty etc.

Few More Banking Terminology

Central plan outlay : It refers to the allocation of monetary resources among the different sectors in the economy and the ministries of the Government. Public account : The Government acts like a banker for transactions relating to provident funds, small savings collection etc. The funds that the Government thus receives from its bank like operations are kept in the public account, from which the related disbursements are made. These funds do not belong to the Government and have to be paid back to the persons and authorities who have deposited them. Ad-valorem duties : These are the duties determined as a certain percentage of the price of products. Balance of payments : Balance of payments is the difference between the demand for, and supply of, a countrys currency on the foreign exchange market. Budget estimates : It is an estimate of fiscal and revenue deficits for the year. The term is associated with the estimates of the Centres spending during the financial year and the income received through taxes. Capital receipt : Loans raised by the Centre from the market. Government borrowings from the Reserve Bank and other parties, sale of Treasury Bills, and loans received from foreign governments form a part of capital receipt. Other items that also fall under this category include recovery of loans granted by the Centre to State Governments and proceeds from disinvestments of Government stake in public sector undertakings. Consolidated fund : Under this, the Government pools all its funds together. It includes all Government revenues, loans raised, and recoveries of loans granted. All expenditure of the Government is incurred from the consolidated fund and no amount can be withdrawn from the fund without authorisation of the Parliament. Contingency fund : This is a fund used for meeting emergencies where the Government cannot wait for an authorisation of the Parliament. The Government subsequently obtains Parliamentary approval for the expenditure. The amount spent from the contingency fund is returned to the

fund later. Monetary policy : This comprises actions taken by the central bank to regulate the level of money or liquidity in the economy, or change the interest rates.
ECONOMIC TERMINOLOGY

Active Market This is a term used by stock exchange which specifies the particular stock or share which deals in frequent and regular transactions. It helps the buyers to obtain reasonably large amounts at any time. Administered Price The administrative body e.g., the government a marketing board or a trading group determines this price. The competitive market force are not entitled to determine this price. The government fixes a price in accordance with demand supply portion in the market. Ad-valorem Tax Ad-valorem tax is a kind of indirect tax in which goods are taxed by their values. In the case of ad-volorem tax, the tax amount is calculated as the proportion of the price of the goods. Value added Tax (VAT) is an ad-volorem Tax. Advanced Countries Advanced countries are countries which are industrially advanced, having high national and per capita income and ensure high rate of capital formation. These countries possess highly developed infrastructure and apply most updated and advanced technical know-how in their productive activities. A strong and well organised financial structure is found in these advanced countries. Amalgamation It means merger. As and when necessity arises two or more companies are merged into a large organisation. This merger takes place in order to effect economies, reduce competition and capture market. The old firms completely lose their identity when the merger takes place. Appreciation Appreciation means an increase in the value of something e.g., stock of raw materials or manufactured goods. It also includes an increase in the traded value of a currency. It is the antonym of Depreciation. When the prices rise due to inflation, appreciation may occur. It causes scarcity or increase in earning power. Arbitrage When a person performs functions of middle man and buys and sells goods at a particular time to cash the price differences of two markets, this action is termed as arbitrage. Purchases are made in the market where price is low and at the same time, goods are sold in other market where the price are high. Thus the middleman earns profit due to price difference in two markets. Arbitration

Where there is an industrial dispute, the Arbitration comes to the force. The judgement is given by the Arbitrator. Both the parties have to accept and honour the Arbitration. Arbitration is the settlement of labour disputes that takes place between employer and the employees. Auction When a commodity is sold by auction, the bids are made by the buyers. Whose ever makes the highest bid, gets the commodity which is being sold. The buyers make the bid taking into consideration the quality and quantity of the commodity. Autarchy If a country is self-sufficient, it does not require the imports for the country. Autarchy is an indicator of self-sufficiency. It means that the country itself can satisfy the needs of its population without making imports from other countries. Automation Automation means the use of machinery & technology to replace the labours work. Automation increases the demand of skilled workers. Unskilled and semiskilled workers are reduced as a result of automation. Balanced Budget When the total revenue of the government exactly equals the total expenditure incurred by the government, the budget becomes a balanced budget. But it is a conservative view point. In present days, the welfare government has to regulate a number of economic and social activities which increase the expenditure burden on the government and results in deficit budget. Balance of Payment Balance of payment of a country is a systematic record of all economic transactions completed between its residents and the residents of remaining world during a year. In other words, the balance of payment shows the relationship between the one country's total payment to all other countries and its total receipts from them. Balance of payment is a comprehensive term which includes both visible and invisible items. Balance of payment not only include visible export and imports but also invisible trade like shipping, banking, insurance, tourism, royalty, payments of interest on foreign debts. Balance of Trade Balance of trade refers to the total value of a country's export commodities and total value of imports commodities. Thus balance of trade includes only visible trade i.e., movement of goods (exports and imports of goods). Balance of trade is a part of Balance of payment statement. Balance Sheet

Balance sheet is a statement showing the assets and liabilities of a business at a certain date. Balance sheet helps in estimating the real financial situation of a firm. Bank Bank is a financial institution. It accepts funds on current and deposit accounts. It also lends money. The bank pays the cheques drawn by customers against current and deposits accounts. The bank is a trader that deals in money and credit. Bank Draft Banker's draft is a negotiable claim drawn upon a bank. Drafts are as good as cash. The drafts cannot be returned and unpaid. Draft is issued when a customer shows his unwillingness to accept cheque in payment for his services or mercantile goods. Bank Draft is safer than a cheque. Bank Rate Bank Rate is the rate of discount at which the central bank of the country discounts first class bills. It is the rate of interest at which the central bank lends money to the lower banking institutions. Bank rate is a direct quantitative method of credit control in the economy. Bilateralism It implies an agreement between two countries to extend to each other specific privileges in their international trade which are not extended to others. Birth Rate Birth Rate (or Crude Birth Rate) is number of the births per thousand of the population during a period, usually a year. Only live births are included in the calculation of birth rate. Black Money It is unaccounted money which is concealed from tax authorities. All illegal economic activities are dealt with this black Money. Hawala market has deep roots with this black money. Black money creates parallel economy. It puts an adverse pressure on equitable distribution of wealth and income in the economy.

Blue Chip It is concerned with such equity shares whose purchase is extremely safe. It is a safe investment. It does not involve any risk. Blue Collar Jobs These Jobs are concerned with factory. Persons who are unskilled and depend upon manual jobs that require physical strain on human muscle are said to be engaged in Blue Collar Jobs. In the age of machinery, such Jobs are on the decline these days.

Brain-Drain It means the drift of intellectuals of a country to another country. Scientists, doctors and technology experts generally go to other prominent countries of the world to better their lot and earn huge sums of money. This Brain-Drain deprives a country of its genius and capabilities. Bridge Loan A loan made by a bank for a short period to make up for a temporary shortage of cash. On the part of borrower, mostly the companies for example, a business organization wants to install a new company with new equipments etc. while his present installed company / equipments etc. are not yet disposed off. Bridge loan covers this period between the buying the new and disposing of the old one. Budget It is a document containing a preliminary approved plan of public revenue and public expenditure. It is a statement of the estimated receipt and expenses during a fixed period, it is a comparative table giving the accounts of the receipts to be realized and of the expenses to be incurred. Budget Deficit Budget may take a shape of deficit when the public revenue falls short to public expenditure. Budget deficit is the difference between the estimated public expenditure and public revenue. The government meets this deficit by way of printing new currency or by borrowing. Bull Bull is that type of speculator who gains with the rise in prices of shares and stocks. He buys share or commodities in anticipation of rising prices and sells them later at a profit. Bull Market It is a market where the speculators buy shares or commodities in anticipation of rising prices. This market enables the speculators to resale such shares and make a profit. Buoyancy When the government fails to check inflation, it raises income tax and the corporate tax. Such a tax is called Buoyancy. It concerns with the revenue from taxation in the period of inflation. Business Cycle Business cycle (also known as trade cycle) are species of fluctuations in the economic activity of organised communities. It is composed of period of good trade characterised by rising prices and low unemployment, alternating with period of bad trade characterised by falling prices and high unemployment. Every trade cycle have five different subphasesdepression, recovery, full employment, prosperity (boom) and recession. Teaser Loan An adjustable-rate mortgage loan in which the borrower pays a very low initial interest rate, which

increases after a few years. Teaser loans try to entice borrowers by offering an artificially low rate and small down payments, claiming that borrowers should be able to refinance before the increases occur. Call Money Call money is in the form of loans and advances which are payable on demand or within the number of days specified for the purpose. Capital Budgeting Capital budgeting represents the process of preparing budget for a period of a year or even for several years allocating capital outlays for the various investment projects. In other words, it is the process of budgeting capital expenditure by means of an annual or longer period capital budget. Capital-labour Ratio Latest models of machinery and equipment raise the labour efficiency and the output is maximized. Capitallabour ratio is the amount of capital against the given labours that a firm employs. Capital-labour ratio is the ratio of capital to labour. Capital Market Capital market is the market which gives medium term and long term loans. It is different from money market which deals only in short term loans. Capitalism Capitalism is an economic system in which all means of production are owned by private individuals Selfprofit motive is the guiding feature for all the economic activates under capitalism. Under pure capitalism system economic conditions are regulated solely by free market forces. This system is based on Laissez-faire system i.e., no state intervention. Sovereignty of consumer prevails in this system. Consumer behaves like a king under capitalism. Cash Reserve Ratio (CRR) The commercial banks are required to keep a certain amount of cash reserves at the central bank. This percentage amount is called CRR. It influences the commercial banks volume of credit because variation in CRR affects the liquidity position of the banks and hence their ability to lend. Census Census gives us estimates of population. Census is of great economic importance for the country. It tells us the rate at which the total population is increasing among different age groups. In India census is done after every 10 years. The latest census in India has been done in 2001. Central Bank Central Bank may be defined as the apex barking and monetary institution whose main function

is to control, regulate and stabilize the banking and the monetary system of the country in the national interest. Cheque Cheque is an order in writing issued by the drawer to a bank. If the customer has sufficient amount in his account, the cheque is paid by the bank. Cheques are used in place of cash money. Clearing Bank Clearing bank is one which settles the debits and credits of the commercial banks. Even of the cash balances are lesser, clearing bank facilitates banking operation of the commercial bank. Clearing House Clearing house is an institution which helps to settle the mutual indebtedness that occurs among the members of its organisation. Closed Economy Closed economy refers to the economy having no foreign trade (i.e., export and import). Such economies depend exclusively on their own internal domestic resources and have no dependence on outside world. Collusion Producers of an industry reduce competition among themselves to raise their profits. They fix the price themselves with a clear understanding in this regard. This understanding among different firms is called collusion. Coinage Art and practice of making coins is called coinage. The metal is melted and moulded to shape into a coin. The coinage is a medium of exchange (money). Collectivism Collectivism is a belief that nation's interest is superior to individual interest. This is the collective thinking of the society and polity national leaders and also communist opine the theory of collection. Commercial Bank Commercial Bank is an institution of finance. It deals with the banking services through its branches in whole of the country. Operation of current accounts, deposits, granting of loans to individuals and companies etc. are various functions of the commercial bank. Communism Communism is a political and economic system in which the state makes the major economic

decision State owns the bulk of capital assets. Responsibility for production and distribution lies with the state in this system. Core Sector Economy needs basic infrastructure for accelerating development. Development of infrastructure industries like cement, iron and steel, petroleum, heavy machinery etc. can only ensure the development of the economy as a whole. Such industries are core sector industries. Corporation Tax It is a tax on company's profit. It is a direct tax which is calculated on profits after interest payments and allowance (i.e., Capital allowance) have been deducted but before dividends are allowed for. Cost-push Inflation It arises due to an increase in production cost. Such type of inflation is caused by three factors : (i) an increase in wages, (ii) an increase in the profit margin and (iii) imposition of heavy taxation. Credit Rationing Credit rationing takes place when the banks discriminates between the borrowers. Credit rationing empowers the bank to lend to some and to refuse to lend to others. In this way credit rationing restricts lending on the part of bank. Credit Squeeze Monetary authorities restrict credit as and when required. This credit restriction is called credit squeeze. Monetary authorities adopt the policy of credit squeeze to control inflationary pressure in the economy. Custom Duty Custom duty is a duty that is imposed on the products received from exporting nations of the world. It is also called protective duty as it protects the home industries.

Cyclical Unemployment It is that phase of unemployment which appears due to the occurrence of the downward phase of the trade cycle. Such an employment is reduced or eliminated when the business cycle turns up again. Dear Money Dear money is that money which can only be borrowed at a high rate of interest. In dear money policy, bank rate and other rates of interest are high and as a result borrowing becomes expensive. Dear money policy is deliberate policy which is adopted by the monetary authorities to check inflation in the economy.

Death Duty It is a direct tax which is imposed on the estate of deceased person. Death duty or Death Tax is a form of personal tax on property which is levied when property passes from one person to other at the time of death of the former. Death Rate Death rate signifies the number of deaths in a year per thousand of the population. It is mostly known as crude death rate. Life expectancy is important determinant of death rate. A country having high life expectancy will have a high crude death rate. Decentralisation Decentralisation means the establishment of various unit of the same industry at different places. Large scale organisation or industry can not be run at one particular place or territory. In order to increase the efficiency of the industry, various units at different places are located. Debt Service (Total) The sum of principal repayments and interest actually paid in foreign currency, goods and services on longterm debt (having maturity of more than one year), interest paid on shortterm debt and repayments to IMF. Deficit Financing It is a practice resorted to by modern government of spending more money than it receives in revenue. It is a policy of bridging a deficit between governments expenditure and revenue. Deliberately budgeting for a deficit is called deficit financing. This practice was popularised by Prof. J. M. Keynes to deal with the depression and unemployment situations and to stimulate economic activity. Deficit financing, though having inflationary effects, has now become a common practice in all countries.

Deflation Deflation is the reverse case of inflation. Deflation is that state of falling prices which occurs at that time when the output of goods and services increases more rapidly than the volume of money in the economy. In the deflation the general price level falls and the value of money rises. Devaluation The loss of value of currency of a country relative to other foreign currency is known as devaluation. Devaluation is a process in which the government deliberately cheapens the exchange value of its own currency in terms of other currency by giving it a lower exchange value. Devaluation is used for improving, the balance of payment situation in the country.

Direct Tax A tax is said to be a direct tax when it is not intended to be shifted to anybody else. The person who pays it in the first instance is also excepted to bear it. Thus the impact and incidence of direct tax fall on the same person shifting of direct tax is not possible Income Tax is a example of direct tax. Disinflation It refers to a process of bringing down prices moderately from their high level without any adverse impact on production and employment. Thus, disinflation is an anti-inflationary measure. Dissaving Dissaving occurs when expenditure exceeds income. Raising of loans or utilization of past accumulated savings takes place in such eventuality. Dividend Dividend is the amount which the company distributes to shareholders when the profits of the company are calculated by the board of directors. Economic Integration Economic integration appears when two or more nations coordinate themselves and their economies are linked up. It may exhibit itself in the form of free trade area or a full economic union. EEC is an example of economic integration. Engel's Law This law was formulated by Ernst Engel. This law states that, with given taste and preference, the portion of income spend on food diminishes as income increases. According to this law, smaller a person's income, the greater the proportion of it that he will spend on food and vice versa. Estate Duty It is a tax which is levied on the estate of a decreased person. It is also known as death duty. The ownership of state changes hands only after the payments of the estate duty. It is an progressive tax in nature. Excise Duty It is a tax which is imposed on certain indigenous production (e.g., petroleum products, cigarettes etc.) of the country. Excise duty may be imposed either to raise revenue or to check the consumption of the commodities on which they are imposed. Excise duty is progressive in nature. Face Value It refers to that normal value of coin at which the coin circulates and is accepted in the discharge of

debit or obligation. Broadly speaking, the face value refers to domination stamped on a coin / or documents when it is issued. In securities, it refers to par value. Fascism It is a form of political system. In it every economic consideration rests on one criterionthe increase in the people's standard of living. It also lays emphasis on military strength and prestige of the country. It is the extreme nationalism and the ultimate goal is selfsufficiency. Federal Economy It refers to a federation which is an association of two and more states. A federal state is a union of state in which authority is divided between the federal (or central) government and the state governments. In a federal economy both the centre and the states are independent in the exercise of this authority. Fiduciary Issue Generally bank-note are backed by gold. But when they are not backed by gold and government securities replace gold, it is called fiduciary issue. Such fiduciary issue results in inflation. Fertility Rate The term fertility refers to the actual bearing of children or occurrence of births. Fertility rate measures the average number of the live births per 1000 women. This rate is one of the most important and useful aids to population projection. It helps in assessing population trends in the economy. Fiscal Policy Fiscal policy is that part of government economic policy which deals with taxation, expenditure, borrowing, and the management of public debt in the economy. Fiscal policy primarily concerns itself with the flow of funds in the economy. Fiscal policy primarily concerns itself with the flow of funds in the economy. It exerts a very powerful influence on the working of economy as a whole. GEM GEM (Gender Empowerment Measure) is a composite index measuring gender inequality in three basic dimensions of empowermenteconomic participation and decision making, political participation and decision making, and power over economic resources. GDI GDI (Gender Related Development Index) is a composite index measuring average achievement in the three basic dimensions captured in the human development indexa long and healthy life, knowledge and a decent standard of livingadjusted to account for inequalities between men and women. Gini-coefficient It represents the measurement of inequality derived from the Lorenz Curve, with every increase in the degree of inequality, the curvature of the Lorenz Curve also increases and the area between the curve and 45 line becomes larger.

The Gini-coefficient is measured as G =Area between Lorenz Curve & 45 Line/Area above the 45 Line Giffin Goods Giffin goods have the positive relationship between price and quantity demanded and as a result demand curve of Giffin goods slopes upward from left to right. This phenomenon was first observed by Sir Robert Giffin in relation to the demand for bread by poor labours. Gresham's Law Bad money (if not limited in quantity) drives good money out of circulationThis statement was given by Sir Thomas Gresham, the economic Adviser of Queen Elizabeth. This law states that people always want to hoard good money and spend bad money when two forms of money are in circulation at the same time. Gross Domestic Product (GDP) It is the money value of all final goods and services produced within the geographical boundaries of the country during a given period of time (usually a year). GDP can be calculated both at current prices and at constant prices. If we add net factor income from abroad to the GDP, we get Gross National Product (GNP). Gross National Product (GNP) It refers to the money value of total output or production of final goods and services produced by the nationals of a country during a given period of time, generally a year. Gross National Product Deflator It is a Price Index Number used to correct the money value of Gross National Product (GNP) for price changes so as to isolate the changes which have taken place in the physical output of goods and services.

Guild Socialism This form of socialism accepts the leadership of artisans. The operation of the whole economy specially the management and control of industries lies in the hands of artisans Socialism established by artisans is termed a Guild Socialism. HDI HDI (Human Development Index) is a composite index measuring average achievement in three basic dimensions of human lifea long and healthy life, knowledge and a decent standard of living. Import Duty Import duty is a tax on imports imposed on an ad-valorem basis i.e., fixed in the form of a percentage on the value of the commodity imported.

Indirect Tax Indirect tax is that tax which is levied on goods or services produced or purchased. Indirect taxes are those which are demanded from one person in the expectation and intention that he shall indemnify himself at the expense to another. Inflation A situation of a steady and sustained rise in general prices is usually known as inflation. Inflation is a state in which the value of money is falling i.e., prices are rising. Joint Demand Joint demand appears in case of complementary goods. When two commodities are complementary to one another and cannot be used separately, they have joint demand. Bread and butter, sugar and tea, pen and ink are a few examples of joint demand. In joint demand a change in demand of one commodity bring about the proportionate change in demand for the other. Joint Sector When a sector is jointly owned, managed and run by both public and private sector, it is called joint sector. This sector indicates the partnership between the two i.e., public and private sector. Labour Union Labour union represents that organisation of workers which works for improving working condition of labours and also for raising their wage by adopting collective bargaining measures with the management of the industry in particular. Laffer Curve This curve is given by American economist Prof. Arthur Laffer. It represents relationship between total tax revenue and corresponding tax rates. Laissez Faire It is a French word meaning non-interference. This doctrine was popularised by classical economists who gave the view that government should interfere as little as possible in the economic activities of the individuals. Life Expectancy at Birth The number of years a newborn infant would live if prevailing pattern of age specific mortality rates at the time of birth were to stay the same throughout the childs life. Liquidation It refers to the termination (or winding up) of a registered company. Liquidation takes place because of company's insolvency. In liquidation, assets are turned into cash for settling outstanding debts and for apportioning the balance, if any, amongst the owners.

Liquidity Assets which can easily be converted into cash money are said to have liquidity. Land does not possess liquidity at it takes longer time to get converted into cash. Liquidity Ratio The commercial banks under banking regulations have to maintain a certain specified proportion of their total deposits of various categories in liquid assets. This maintainable proportion is called liquidity ratio. Lock-out Lock-out refers to such a situation when the management does not permit the workers to work unless they agree to accept the employer's term. Lock-out is the closing of work by the management for an uncertain period of time to put pressure on the labour union. It is an action by the employer equivalent to a strike by employees. Lorentz Curve This curve shows the degree of inequalities of a frequency distribution in a graphical manner. It is a curve on a graph which shows the cumulative proportion of a statistical population against this cumulative share of some characteristic. This curve is commonly used to depict income distribution showing the cumulative percentage of people from the poorest up and their cumulative share of national income. Lump Sum Tax Lump sum tax is a fixed amount which has imperative nature irrespective of the income level. This tax is not equitable in nature. Merit Goods Merit goods refer those goods that are very essential to the society as a whole and hence the government ensures their availability to all consumers, regardless of their ability to pay to reasonable price.

Mixed Economy It refers to that economic system in which both private and public sector co-exists. Indian economy is an example of a mixed economy. Monetary Policy Monetary policy comprises all measures applied by the monetary authorities with a view to produce a deliberate impact on the nature and volume of money so as to achieve the objectives of general economic policy. It aims at regulating the flow of currency, credit and other money substitutes in an economy with a view to affect the total stock of such assets as well as to influence the demand of the community for such assets. Monetary Reforms When a new currency is introduced in a country due to hyperinflation or due to a deliberate

policy measure (such as decimalization) it is termed as monetary reform. Monopoly Monopoly refers to that market structure where there is only one seller in the market who controls the entire market supply and no substitute of the product is available in the market. Monopsony Monopsony is that market situation in which there is only one single buyer of the product in the market. In other word, buyer's monopoly is termed as monopsony. Multinational Company It is a large scale company which has its production base in several countries and the bulk of the production is produced in outside nations. This company produces more overseas than they do in its parent country. Increased trade and economies of scale have encouraged such type of companies in the recent years. National Income In the simplest way it can be defined as factor income accruing to the national residents of a country. It is the sum of domestic factor income and net factor income earned from abroad. Net national product at factor cost is called national income. Net National Product (NNP) When depreciation is deducted from GNP i.e., Gross National Product, we get Net National Product (NNP) Oligopoly Oligopoly is that form of imperfect competition in which there are only a few firms in the industry (or group) producing either homogeneous products or may be having product differentiation in a given line of production. Open Economy Open economy is that economy which is left free and the government imposes no restrictions on trade with areas outside that economy. Okuns Law Arthur Okun presented an empirical relationship between cyclical movements in GNP and unemployment. Okun found that an annual 25% increase in the rate of real growth above the trend growth results in a 1% decrease in the rate of unemployment. This relationship is known as Okuns Law. Perfect Competition Perfect competition is the market in which there are many firms selling identical products with no firm large enough relative to the entire market to be able to influence market price.

Poverty Line Poverty line is a virtual line demarcating persons living below and above it. In India all those persons are treated living below poverty line who are not able to earn that much of income which is not sufficient to acquire food equivalent to 2100 calories per person per day in urban areas and 2400 calories per person per day in rural areas. As per UNDP, one US dollar (1993 PPP US $) per person per day is treated as poverty line. PQLI PQLI is known as Physical Quality of Life Index which is used to assess the level of social development. This index was developed by Jim Grant for The Overseas Development Council PQLI is calculated by using indices of (i) Adult literacy rate, (ii) IMR, (iii) Life Expectancy. Price Mechanism Price mechanism signifies the working of those market forces which establishes equilibrium in the economy. Laissez faire policy is the basis for the working of price mechanism. Price Ring It is an unofficial syndicate by which the prices are controlled with the prior understanding among the traders. These dealers under a price ring decide not to over-bid one another at the public auction to keep the prices low. This price ring may discourage outsiders from coming to the auctions. Private Sector Private Sector is that part of the economy which is not owned by the government and is under the hands of private enterprise. In other words, private sector is not under direct government control. Private sector includes the personal as well as the corporate sector. Privatisation Privatisation is the antithesis of nationalisation. When the government owned public industries are denationalised and the disinvestment process is initiated, it is called privatisation. Public Debt Public debt represents borrowing by the state and public authorities. All loans taken by the public authorities constitute public debt. Public Goods Public goods are those goods which belong to the entire community. None of the individual of the society can be made deprived of using these public goods. National defence, Police, Street lighting etc. are examples of public goods. Public Sector Public sector signifies those undertakings which are owned, managed and run by public authorities. Public sector includes direct government enterprise, the nationalized industries and public corporations. In this sector of the economy the government acts itself as an entrepreneur. Peril Point It indicates that point beyond which tariff reductions would threaten the existence of domestic industry.

Quick Asset Those assets are quick assets which are liquid or nearly liquid in nature and easily be turned into cash. Quoted Company That company is called quoted company whose share prices are quoted on a stock exchange. Reflation It signifies general increase in the level of business activity in the economy. Reflation generally involves greater government expenditure and the easing of credit to encourage increased production. Regressive Tax It is a tax in which rate of taxation falls with an increase in income. In regressive taxation incidence falls more on people having lower incomes than that of those having higher incomes. Repressed Inflation It is a state in which aggregate demand is greater than the total supply of goods and services in an economy, but prices are prevented from rising to eliminate excess demand. The holding down of price is sometimes done by government as a means of suppressing inflation. Reserve Asset Ratio It is the ratio of a banks reserve assets to its eligible liabilities. Revolving Credit It is a bank credit that is renewed automatically until notice of cancellation is received. Revolving credits may be sanctioned for an unlimited amount in total but with a limit on the amount that may be drawn at any one time or within a specified period, e.g., one month. Seasonal Unemployment It is that unemployment which is caused by seasonal variation in demand for labour by various industries, such as agriculture, construction and tourism. Seasonal unemployment normally declines in spring as more outdoor work can be undertaken. Security Security refers to a share, bond or government stock that can be bought and sold, usually on the stock exchange or on a secondary market, and carries a right to some form of income, either in the form of a fixed rate of interest or dividends. Shadow Price It is an imputed value for a good based on the opportunity costs of the resources used to produce it such values are of particular significance in resolving problems of resource allocating with respect to the effect on welfare. Share Capital It is the amount of money raised by a company by issuing shares. The authorized share capital is the amount that a company is allowed to issue as laid down in its Articles of Association. The issued share capital is the amount actually issued i.e., the number of issued shares multiplied by their par value. Fully paid share capital is the amount raised by payment of the full par value

of the issued shares. Single Tax System It is a system in which all tax revenues are raised from one form of taxation. Socialism The political doctrine that the means of production (machines, materials and output) should be owned by society and specifically either by the state, as in the case of nationalized industries or by the workers directly, as in the case of producer co-operatives. Social Security Provision by the state out of taxation of welfare assistance to those in need as a result of illness, unemployment, or old age compare national insurance refers to social security. Soft Currency A currency with limited convertibility into gold and other currencies, either because it is depreciating due to balance of payments difficulties or because controls have been placed on it to prevent the exchange rate falling. Special Drawing Rights (SDRs) It is a reserve asset (known as Paper Gold) created within the framework of the International Monetary Fund in an attempt to increase international liquidity, and now forming a part of countries official reserves along with gold, reserve positions in the IMF and convertible foreign currencies. Special Tax (Unit Tax) It is a tax imposed per unit of a commodity rather than on the value of the commodity compare ad-valorem. Stabilization Policy It is Government economic policy announced at reducing the cyclical and other fluctuations that take place in a market economy. Stagflation It is a state of the economy in which economic activity is slowing down, but wages and prices continue to rise. The term is a blend of the words stagnation and inflation. Surplus Value It is the difference between the amount paid to a factor and the revenue earned by selling the output it produced.
CASHBACK

The term 'cashback' is used in case of credit cards. Some of the banks that issue credit cards give back some money to the card holder, if he/she uses the credit card to make payments at some particular retailers or merchandise stores. In the credit card statement, the user would get to know about the amount of cash back offered to him/her. The final amount, that is due on the credit card, is calculated by subtracting the payments that have been made during the billing cycle along with the cash back amount.
Like? CLEARING HOUSE

When a cheque is deposited in the bank, the receiving bank has to actualize the amount from the drawee bank before it is transferred to the concerned person's account. The drawee bank is presented with the cheque in the clearing house by the receiving bank. The clearing house is a main collection area for the banks to deal in financial securities including drafts, cheques and others. This activity is carried out during working days on daily basis.
Like? RTGS: Real time gross settlement

Its a fund transfer mechanism that enables money to move from one bank to another on a real time and gross basis. Simply put, real time means the transaction is settled instantly without any waiting period and gross means that it is not bunched with any other transaction. You can transfer a minimum of Rs2 lakh through RTGS; there is no upper ceiling though. The bank will charge you Rs25-Rs50 for an outward RTGS transaction, inward transactions are free. RTGS is the fastest inter-bank money transfer facility available through secure banking channels in India. But not all branches in India are RTGS enabled. Visit the Reserve Bank of Indias (RBI) website for a list of branches where you will get this facility. When do you need it: This facility would be handy during an emergency, when you need to transfer funds quickly, imagine an ill child studying in another city or a parent in an emergency situation and needing money at once. You would be able to use this facility if you use Internet banking as a channel. It is mostly used by high networth individuals and businessmen, who have at least Rs2 lakh to be transferred business associates or clients.
NEFT: National electronic funds transfer

NEFT enables funds transfer from one bank to another but works a bit differently than RTGS since the settlement takes place in batches rather than individually, making NEFT slower than RTGS. The transfer is not direct and RBI acts as the service provider to transfer the money from one account to another. You can transfer any amount through NEFT, even a rupee. You wont have to pay any fee for inward transfer of funds, but for outward transactions the charges can be from Rs5-Rs25 depending on the amount transferred. When do you need it: You can use this facility if you want to transfer funds online in a day or two. NEFT can make life easier for those who need to send money to their parents or children living in another city. It cuts the trouble of issuing a cheque or draft and posting it. NEFT, too, can be done only through Internet banking. Visit RBI website for a list of branches where you will get this facility. This is because NEFT operates on a Deferred Net Settlement (DNS) basis which settles transactions in batches. In DNS, the settlement takes place at a particular point of time. All transactions are held up till

that time. For example, NEFT settlement takes place 6 times a day on weekdays (9.00 am, 11.00 am, 12.00 noon. 13.00 hours, 15.00 hours and 17.00 hours) and 3 times during Saturdays (9.00 am, 11.00 am and 12.00 noon). Any transaction initiated after a designated settlement time would have to wait till the next designated settlement time.
IFSC: India financial system code

An 11-digit alphanumeric (letters and numbers) code that helps identify bank branches. ** The first four numbers represent the banks code (alphabetic), the fifth number is a control character (0), and the next six numbers denote a bank branch. ** For example, the IFSC for Bank of India's Mapusa Branch reads as BKID0001005. This code is mentioned on your cheque. Different banks mention it at different places on the cheque. When do you need it: When sending money through RTGS or NEFT, you need to know the IFSC of the receiving branch Indian financial System A financial system work as an intermediate and facilitate the flow of funds from the areas of surplus to area of deficit. Major function performed by Indian financial system : 1. Saving function 2. Liquidity function 3. Risk Function 4. Policy function 5. Payment function Financial Market can be divided in to two parts 1. Money Markets:Have short term maturity ie less than or equal to 1 year.some example of money markets are, * Call Money Market-Maturity Period from 1 to 15 days Money lent for 1 days is called as Call Money Money Lent for >1 But <15 days -called as Notice Money Call money borrowed from the market to meet various requirement of commercial bill market and banks.Bank borrow in capital market to meet CRR ,and sudden demand of fund. Call money market located in Mumbai,Kolkata,Chennai,Delhi, Ahmadabad. Participant in this market are split in two category 1. Who can lend and borrow money Ex.RBI,its intermediaries like DHFC,STCI, and commercial bank 2. who can only lend money Ex,Financial Institution,Mutual funds Interest rate paid on call loans called as Call rates Commercial paper and Deposits(CP): unsecured

issued in form of Promissory notes CP issued by -corporate,primary dealer(PD) -all India Financial institution (FI) CP issued always in multiple of 5 lack Participant should obtain Credit rating from * CRISIL( Credit rating information service of India Ltd) * ICRA(Information and credit rating agency of India Ltd) * CARE(Credit analysis and research Ltd) * FITCH rating India pvt Ltd Rating should be P-2 of CRISIL or equivalent Corporate is eligible to issue CP net worth of 4 crore Financial institution -issue should not exceed 100% of their net worth. Issuer appoint -Issuing and paying agent ( IPA) -all scheduled bank act as IPA. CP attract stamp duty -0.25 % for primary issue except bank 0.05%. -no stamp duty for secondarily issue Certificates of Deposits(CD) lowest risk next to T-bill. secure Negotiable promissory notes Issued by Scheduled commercial bank selected all India financial institution , Regional rural and Local area bank can not issue CD. Minimum amount for investment 1 lakh should not be - less than 7 days or more than 1 yrs for bank -less than 1 yr or more than 3 yr for financial institution. 2.Capital Market: * Primary market-borrow from the market * Secondary Market-liquidity function A company can raise a capital through issue of Shares and debenture by means of * Public Issue-involve raising of fund directly from the Public * Right Issue-raising additional finance from existing members on pro rata basis. * Bonus issue-some company distribute profit to existing shareholders by the way of full paid Bonus shares in lieu of dividend. * Private placement-is the direct sale by Public limited company or private limited company to limited number of sophisticated investors such as UTI GIC. * Bought out Deal(BOD) Types of Govt Securities * Govt securties are also called as Gilt-edge securties(Intrest and principle payment gauranted).

* Long term securties >10 yrs * Medium dated >5-10 yrs * Short term <5 yrs * securties are of following types 1. Central Govt securties 2. State govt Securties 3. Securties Gaurded by Central govt for All India Financial Insitution like IDBI,ICICI ,IFCI. 4. Securties Gaurded by Statte Govt for Insitution like Electrical Baoard,Housing Board. 5. Treassury bill issued by RBI.

DIFFERENCE BETWEEN CAPITAL MARKET N MONEY MARKET

1. The subject matter of capital market is long-term financial instruments having maturity of more than one year. on the other hand, the thrust of Money Market is on short-term instruments only. 2.Money market is a wholesale market and the participants in money market are large institutional investors, commercial banks, mutual funds, and corporate bodies. However, in case of capital market even a small individual investor can deal by sale/purchase of shares, debentures or mutual fund units. 3.In capital market, the two common segments are primary market and secondary market. Both these segments are interrelated. Securities emerge in primary segment and their subsequent dealings take place in secondary market. However, in case of money market, there is no such sub-division in general. In efficient money market, secondary market transactions may also take place. 4.Total volume of trade occur per day in money market is many fold that of the volume per day taking place in capital market. 5.In capital market, the financial instruments being dealt with are shares (equity as well as preference),debentures (a large variety), public sector bonds and units of mutual funds. On the

other hand, money market has different financial instruments such as treasury bills, commercial papers, call money, certificate of deposits, etc. Difference between commercial bank n RRB 1.All the RRB'S reported to NABARD and all policy for RRB's made by NABARD BUT commercial banks reported to RBI and it makes all policy to commercial banks. 2. commercial banks works on sound business principal.thay basically works for the profit motivs and they can work all over india at any where but regional rural banks are established for the purpose of development on specific area they are established by the government to provide rural finance to agicultural ,agri related activities and other small and micro level for the development of rural areas and rural economy.thay works on a specified given area. 3.regional rural banks are came into existance because of the failure of commercial banks to provide rural finance.
Lead Bank

Lead banks are banking institutions that are charged with the responsibility of overseeing the management of any project involving more than one lender. Depending on the structure of the project, the lead bank may function as an agent that is authorized to act on behalf of all the other lenders involved. At other times, the bank functions as the facilitator for any actions taken regarding the project, keeping all partners in the project informed of current developments, then taking action once the group has reached a consensus on how to move /forward. The designation of a lead bank is very common with syndicated loans where more than one institution is underwriting the cost of the loan.
Treasury Bills

Treasury Bills are the instruments of short term borrowing by the Central/State govt. They are promissory notes issued at discount and for a fixed period. These were first issued in India in 1917. **Objectives These are issued to raise funds for meeting expenditure needs and also provide outlet for parking temporary surplus funds by investors. **Investors Treasury bills can be purchased by any one (including individuals) except State govt. These are issued by RBI and sold through fortnightly or monthly auctions at varying discount rate depending upon the bids. **Denomination Minimum amount of face value Rs.1 lac and in multiples there of. There is no specific amount/limit on the extent to which these can be issued or purchased. Maturity : 91 days and 364 days.

**Rate of interest Market determined, based on demand for and supply of funds in the money market. **Other features a. These are highly liquid and safe investment giving attractive yield. b. Approved assets for SLR purposes and DFHI is the market maker in these instruments and provide (daily) two way quotes to assure liquidity. c. RBI sells treasury bills on auction basis (to bidders quoting above the cut-off price fixed by RBI) every fortnight by calling bids from banks, State Govt. and other specified bodies.
Narrow Banking

Narrow Banking- The system of banking under which a bank places its funds in risk-free assets with maturity period matching its liability maturity profile, so that there is no problem relating to asset liability mismatch and the quality of assets remains intact without leading to emergence of sub-standard assets. **In India, the concept of narrow banking came into discussion after submission of the report by the Committee on Capital Account Convertibility (Tarapore Committee). It was suggested as a solution to the problem of high NPAs and related matters. The Committee proposed that incremental resources of these narrow banks should be restricted only to investments in govt. securities. **Advantages - Such an approach can ensure the regular deployment of funds in low risk liquid assets. With such pattern of deployment of funds, these banks are expected to remove the problems of bank failures and the consequent systemic risks and loss to depositors. **Status of narrow banking in India -The concept is practically being implemented by the Indian banking system partly, as a large part of the deposits mobilised (i.e. more than 46%) by the banks, has been deployed in Govt. securities (against a prescription of 25% in the form of SLR) as it provides a safe avenue of investment but at a very low return. This keeps the level of non-performing assets (rather than advances) low and the requirement of capital adequacy ratio also low, as the risk weight allotted to such securities is only 2.5% compared to 100% in loan assets. Basics of Classification of Rural Branches 1.Rural- Population less than 10000 2.semi Urban- Above 10000,below 1 lac 3.Urban-1 lac and above less than 10 lac 4.Metro- 10 Lac and above
Negotiable Instrument

A transferable, signed document that promises to pay the bearer a sum of money at a future date or on demand. Examples include checks, bills of exchange, and promissory notes. **The Negotiable Instruments Act, 1881 was amended by the Banking, Public Financial Institutions and it come into force in March 01,1882 ** What is Negotiability(1) Transferable to another - free to be traded in financial markets. (2) Capable of being settled by agreement between the parties involved in a transaction. (3)Transfer without restriction **Negotiability of a document is affected by -

(1) the statutory formalities and language (specific terminology) used in its making (2) proper endorsement or delivery (3) the transferee being (or having the rights of) a holder in due course.
Promissory Note

A written, dated and signed two-party instrument containing an unconditional promise by the maker to pay a definite sum of money to a payee on demand or at a specified future date. **Points to remembera.PN is always in writing b.PN has an unconditional undertaking called promise c.The promise is to pay money d.The money has to be paid to the certain person ** Types of Promissory Note1.Demand Promissory Note- A written, signed, unconditional promise to pay a certain amount of money on demand at a specified time. 2.Usance Promissory Note-Payble after a pre-decided definite period. **Parties to a Promissory note1.Maker-Who promises to pay-in case of bank loan,it is borrower 2.Payee-To whom it is payble-in case of bank loan,the Bank **Points to be noted1. The only difference between a promissory note and a bill of exchange is that the maker of a note pays the payee personally, rather than ordering a third party to do so. 2. When a bank is the maker promising to repay money it has received plus interest, the promissory note is called a certificate of deposit (CD). 3. when a person issues a promissory note, he/ she would have to stamp it as per the Indian Stamp Act and normally a revenue stamp is affixed on the PN signed by the promissory. Financial inclusion Financial Inclusion is the delivery of financial services at affordable costs to sections of disadvantaged and low income segments of society. Unrestrained access to public goods and services is the necessity of an open and efficient society. It is argued that as banking services are in the nature of public good, it is essential that availability of banking and payment services to the entire population without discrimination is the prime objective of public policy. The term "financial inclusion" has gained importance since the early 2000s, and is a result of findings about financial exclusion and its direct correlation to poverty. Financial inclusion is now a common objective for many central banks among the developing nations. Major Three Aspects Of Financial Inclusion Make people to 1. Access financial markets 2. Access credit markets 3. Learn financial matters (financial education )

Financial Inclusion Includes Accessing Of Financial Products And Services Like, 1.Savings facility 2.Credit and debit cards access 3.Electronic fund transfer 4.All kinds of commercial loans 5.Overdraft facility 6.Cheque facility 7.Payment and remittance services 8.Low cost financial services 9.Insurance (Medical insurance) 10.Financial advic11.Pension for old age and investment schemes 12.Access to financial markets 13.Micro credit during emergency 14.Entrepreneurial credit Factors affecting access to financial services Legal identity : Lack of legal identity like voter id , driving license , birth certificates ,employment identity card etc. Limited literacy : Particularly financial literacy and lack of basic education prevent people to have access from financial services . Level of income : Level of income decides to have financial access . Low income people generally have the attitude of thinking that banks are only for rich. 'Terms and conditions : While getting loans or at the time of opening accounts banks places many conditions , so the uneducated and poor people find it very difficult to access financial services . Complicated procedures : Due to lack of financial literacy and basic education , it is very difficult for those people who lack both to read terms and conditions and account filling forms . Psychological and cultural barriers : Many people voluntarily excluded themselves due to psychological barriers and they think that they are excluded from accessing financial services . Place of living : As the name suggests that commercial banks operate only in commercially profitable areas and they set up branches and main offices only in that areas .People who lived in under developed areas find it very difficult to go to areas in which banks are generally reside . Lack of awareness : Finally , people who lack basic education do not know the importance of the financial products like Insurance , Finance , Bank Accounts , cheque facility ,etc.

Bank Union and Association AIBEA (All India Bank Employees Association) AIBOC (All India Bank Officers Confederation) NCBE (National Confederation of Bank Employees), NCBISU AIBOA (All India Bank Officers Association) BEFI (Bank Employees Federation Of India) INBEF (Indian National Bank Employees Federation) INBOC (Indian National Bank Officers Congress) NOBW (National Organisation of Bank Workers) NOBO (National Organisation of Bank Officers)

D Topics

NATIONAL PROSPERITY LIES IN DEVELOPMENT OF AGRICULTURE IS MORAL POLICING RIGHT IN INDIA T20 CRICKET V/S NORMAL CKT Privatization in higher studies Should Regional Parties banned or not Whether Non voters be punished or not should india have presidential rule All subsidies should be abolished is india increasingly becoming a soft state? saving culture in india do pvt banks provide better services than public sector banks India's diversity is it's strength Trade unions a threat to industrial development.Do you agree? Climate Change Norms affect economic growth of developing countries like India Should govt retrict electronic media. should IT sector be unionized? Does west adopt double standards with regard to terrorist attacks on India the benefits of economic growth is negated by the increase in population Globalisation of Economy has made Nationalism irrelevant arrange marriages are still more successful The growing Rich Poor Divide in India can lead 2 Social Unrest Should Politicians have Retirement Age Is Nano a feasible project in the times of traffic jam and pollution globalisation fact with the devil

is economic development a prerequisite for social justice. should capital punishment be abolished
Few More GD Topics

US war on Iraq-justified or not. Role of UN in peacekeeping. Position of Women in India compared to other nations. Environment MANAGEMENT. Is China better than India in software? Should SONIA Gandhi be made the PM? BPOs in INDIA Govt. contribution to IT Will punch lines rule the Advt. Premaritial sex Is china a threat to Indian industry India or west, which is the land of opportunities Water resources should be nationalized "BALANCE BETWEEN PROFESSIONALISM AND FAMILY" Effect of cinema on Youth Education in India compared to Foreign nations Is it necessary to ban COCOCOLA in India. What is the effect of movies on youth.(is it good or bad) "UN's peace activities" and "America's war on Iraq". "Environment - Whos Responsibility". Is China a threat to the Indian software industry? Role of UN in Peace keeping War on Iraq About Hockey being the primary game in India. Can America occupy Iraq? Cricket should be banned or not. IS CHINA A THREAT TO INDIA Present state of Indian Cricket team. Love marriage/Arranged marriage. Advantages of Co-education. How to deal with international terrorism Should we pursue our policy of dialogue with Pakistan? Is peace and non-violence outdated concepts? IT industry in India Orkut: curse or boon Indian economy Concepts of IT and me, etc. How do u compare an IT professional and an ant ???

Also - Janlokpal Bill & its Working Methodology Censorship on Social Networking Sites [Kapil Sibal]
Loan Waivers Be Banned?

The policy of loan waiver is a populist decision, rather than being a prudent economic policy measure and for future it should be barred by law. Give arguments For and Against this view. Whether it is the free power for a particular section or the waiver of loans, the elections become the immediate causes for such policy measures. The parties try to draw two benefitsone at the time of elections to make populist promises and the second at the end of term and before the next elections to win over the voters. One such recent example is the decision of the UPA government to waive the farm loans amounting to over Rs 65,000 crores. Considering the adverse economic impact of such decisions, many people are of the view that such measures should be barred by enacting suitable laws. Arguments For the View (a) The loan waiver amounts to rewarding the default on repayment of loans and may encourage such tendency among the farmers in future. Such a practice must be curbed. (b) A waiver scheme for the small and marginal farmers is understandable but there is no logic in extending its benefits to medium and large farmers. Taxpayers money can not be squandered like this. (c) Loan waivers have disastrous effect on economy, as the fiscal discipline of the government as well as that of the public sector banks is shaken badly. (d) The Election Commission of India must put restrictions on such populist announcements in the manifestos of the political parties, so that the evil is nipped in the bud.
1

Arguments Against the View (a) Other than the agriculture, other sectors of the economy are doing extremely well and the fruits of economic development are not trickling down to the rural economy. Many farmers have committed suicides. In such a scenario, loan waiver has come as a great relief to the poor farmers. (b) Bad debt caused by non-payment by the industrial houses and other well to do persons of the country is quite huge every year. When we are not in a position to recover all the loans from well to do people of the economy, extension of this benefit to lakhs of poor and needy farmers should be welcomed.

(c) In a democracy, it would be wrong to restrict the right of the political parties. The manifestos are the pre-election policy indications and if the people of the country choose a particular set of such indications and vote for a particular political party, there is nothing wrong. It rather strengthens the democracy in the country.
Measure of Price Rise

The current measure of price rise in the country is faulty and misleading, requiring complete overhaul. Give arguments For and Against this view. Data about price level and the pattern of price rise or decline is essentially required by every economy and measurement of inflation rate in every economy is thus a crucial input for the economic policy makers. Several economic decisions depend heavily on the measure of inflation rate. Various monetary policy measures like the Bank Rate and the resultant interest rates (both lending and borrowing), money supply, credit creation by the banks are dependent on the rate of price rise. Similarly, fiscal policy measures like the rates of import and export duties, excise duties and personal taxation rates are also influenced by the rates of price rise and decline prevailing in the economy. In India, the inflation rate is worked out on the basis of the variations in the Wholesale Price Index (WPI). Consumer Price Index (CPI), on the other hand, determines the amount of dearness allowance to the industrial workers. Arguments For the View (a) The WPI is a representative index which includes the variation in the rates of certain commodities in which the food articles, engineering goods, manufactured products and other goods produced in the country are represented. The data is then used to measure the rise in wholesale prices. It does not completely represent the change in price of the food articles fully and requires changes to achieve this. (b) The economy has become globalised and open now and the composition of its total production as well as exports has undergone drastic changes. The composition of WPI must also change to meet the requirement of the modern times. (c) For the consumers, it is the CPI which is more representative of the price situation of the goods required by the households. Hence, for the purpose of consumers, the CPI-related inflation rate must also be revealed to the general public so that the true picture on the price front becomes known to everyone.

Arguments Against the View (a) The WPI-based inflation figures are used by the government for various decisions and not specifically for the consumers. These figures have to be broad based and representative of the whole economy and not of a particular segment of it. (b) As per the practice followed in other parts of the world also, the WPI is considered to be a true representative of the measure of the fluctuations in the general price level in the country. The data is used for various economic applications by the government, as also by various private sector organisations. (c) WPI and CPI are used for two separate measures and applications. Their purpose is also different. Rather than complete overhaul of the system, it would be better if the composition of the two is re-worked and suitably modified to meet the current day requirements. Further, efficient application of the two is also very important. (1) International cooperation on terror issues - a myth or reality. (2) Pluralism in practise in our society. (3) The 'Development vs Displacement' Issue. (4) Tolerance in International relations : a strngth or a weakness. (5) Climatic change is the result of human misdeeds. (6) The major cause of crimes in todays world.
Group Discussion Tips (GD)

A group discussion (GD) is a simulated exercise. The note attempts to present a few tips on GD and how to handle them to ensure a positive outcome. Here's how most group discussions work: Normally groups of 8-10 candidates are formed into a leaderless group, and are given a specific situation to analyze and discuss within a given time limit. 1. The group may be given a case study and asked to come out with a solution for a problem. 2. The group may be given a topic and asked to discuss on the same. A panel will observe the proceedings and evaluate the members of the group
GD - Group Discussion - Basics

One needs to know what one's objective in the group is. A good definition of your objective is - to be noticed to have contributed meaningfully in an attempt to help the group reach the right consensus. What does this essentially mean? 1. The first implication is that you should be noticed by the panel. Merely making a meaningful contribution and helping the group arrive at a consensus is not enough. You have to be seen by the evaluating panel to have made the meaningful contribution. What does that mean in practice? ----You must ensure that the group hears you. If the group hears you, so will the evaluator. That does not mean that you shout at the top of your voice and be noticed for the wrong reasons. ----You have to be assertive. If you are not a very assertive person, you will have to simply learn to be

assertive for those 15 minutes. Remember, assertiveness does not mean being bull-headed, arrogant or aggressive. ----And most importantly, you have to make your chances. Many group discussion participants often complain that they did not get a chance to speak. The fact is that in no group discussion will you get a chance to speak. There is nothing more unacceptable in a GD than keeping one's mouth shut or just murmuring things which are inaudible. ----Participate in as many practice GDs as possible before you attend the actual GD. There is nothing like practice to help you overcome the fear of talking in a GD.
GD - Group Discussion - Important Tips

2. The second important implication is that making just any sort of contribution is not enough. Your contribution has to be meaningful. A meaningful contribution suggests that ----You have a good knowledge base ----You are able to put forth your arguments logically and are a good communicator. ----The quality of what you said is more valuable than the quantity. There is this myth amongst many group discussion participants that the way to succeed in a group discussion is by speaking loudly and at great length. One could not be more wrong. You must have meat in your arguments. Therefore, think things through carefully. Always enter the room with a piece of paper/pad and a pen. In the first two minutes jot down as many ideas as you can. When you jot down points, keep these in mind. If it is a topic where you are expected to take a stand, say for example, "Should India sign the Comprehensive Test Ban Treaty?" note down points for both sides of the argument. It will be useful on two counts -----One, if you do not start the GD and are not amongst the first five speakers and find that everyone in the group is talking for the topic, then it makes sense to take the alternate approach and oppose the topic even if you initially intended to talk for the topic. -----Second, it helps to have knowledge of how group members who take a stand diametrically opposite to yours will put forth their arguments and be prepared with counter arguments.
GD - Group Discussion - Important Tips

3. Everybody else will state the obvious. So highlight some points that are not obvious. The different perspective that you bring to the group will be highly appreciated by the panel. Some pointers on being relevant while having a different perspective are: -----Be careful that the "something different" you state is still relevant to the topic being debated. -----Can you take the group ahead if it is stuck at one point? -----Can you take it in a fresh and more relevant direction?
GD - Group Discussion - Important Tips

4. The last implication is that you must be clearly seen to be attempting to build a consensus. -----Gaining support or influencing colleagues is the mantra adopted by many a successful Business Leaders. ----Nobody expects a group of ten intelligent, assertive people, all with different points of view on a

controversial subject to actually achieve a consensus. But what matters is "Did you make attempts to build a consensus?" ----The reason why an attempt to build a consensus is important is because in most work situations you will have to work with people in a team, accept joint responsibilities and take decisions as a group. ----You must demonstrate the fact that you are capable and inclined to work as part of a team.
Like?

The tips given below are applicable in any GD. The only difference between most other GDs and the GDs conducted during campus recruitments is the intensity of the competition. >>Be as natural as possible. Do not try and be someone you are not. Be yourself. A group discussion is your chance to be more vocal. The evaluator wants to hear you speak. >>Take time to organize your thoughts. Think of what you are going to say. Seek clarification if you have any doubts regarding the subject. >>Don't start speaking until you have clearly understood and analyzed the subject. Work out various strategies to help you make an entry: initiate the discussion or agree with someone else's point and then move onto express your views. >>Opening the discussion is not the only way of gaining attention and recognition. If you do not give valuable insights during the discussion, all your efforts of initiating the discussion will be in vain. >>Your body language says a lot about you - your gestures and mannerisms are more likely to reflect your attitude than what you say.
Group Discussion(GD) - Dos and Donts

>>Language skills are important only to the effect as to how you get your points across clearly and fluently. >>Be assertive not dominating; try to maintain a balanced tone in your discussion and analysis. >>Don't lose your cool if anyone says anything you object to. The key is to stay objective: Don't take the discussion personally. >>Always be polite: Try to avoid using extreme phrases like: `I strongly object' or `I disagree'. Instead try phrases like: `I would like to share my views on' or `One difference between your point and mine' or "I beg to differ with you" >>Brush up on your leadership skills; motivate the other members of the team to speak (this surely does not mean that the only thing that you do in the GD is to say "let us hear what our friend here has to say," or "Raghu, let us hear your views" - Essentially be subtle), and listen to their views. Be receptive to others' opinions and do not be abrasive or aggressive.
GD - Group Discussion - Skills Assessed

Here is a sample list of skills assessed during a group discussion: Leadership skills: Ability to take leadership roles and ability to lead, inspire and carry the team along to help them achieve group's objectives. Example: To be able to initiate the group discussion, or to be able to guide the group especially when the discussion begins losing relevance or try to encourage all members to participate in the discussion.

Communication skills: The participating candidates will be assessed in terms of clarity of thought, expression and aptness of language. One key aspect is listening. It indicates a willingness to accommodate others views. Example: To be able to use simple language and explain concepts clearly so that it is easily understood by all. You actually get negative marks for using esoteric jargons in an attempt to show-off your knowledge. Interpersonal skills: This is reflected in the ability of the individual to interact with other members of the group in a brief situation. Emotional maturity and balance promotes good interpersonal relationships. The person has to be more people centric and less self-centered. Listening skill is an important requisite. Example: To remain cool even when someone provokes you with a personal comment, ability to remain objective, ability to empathize, non-threatening and more of a team player.
Like? GD - Group Discussion - Skills Assessed

Persuasive skills: Ability to analyze and persuade others to see the problem from multiple perspectives without hurting the group members. Example: While appreciating someone else's point of view, you should be able to effectively communicate your view without overtly hurting the other person. Problem solving skills: Ability to come out with divergent and offbeat solutions and use one's own creativity. Example: While thinking of solutions, don't be afraid to think of novel solutions. This is a high- risk highreturn strategy. Conceptualizing skills: The ability to grasp the situation, take it from the day to day mundane problem level and apply it to a macro level. Example: At the end of the discussion, you could probably summarize the findings in a few sentences that present the overall perspective.

*~ INTERVIEW Preparation
Interview is the measuring rode of a person's knowledge, personality & power of expression through Face to Face contact. The primary objectivof an Interview is to select the right person 4 the right job. No matter how impressive aresume may be, no matter how high the ranking in the written test be, the aspirants must be well aware of the significance of interview. The two important factors which play a

decisive role in the interview are your knowledge and also the power of expression.

First I'll discuss some qs. from HR round...itz the most imp. round in which qs. are simple but having various dimensions... Question:1. Tell Me a Little About Yourself? Answer: This is the most general and probably the most difficult question, as one has to cover up the entire life story within a couple of minutes. But if handled well, this can be the best from the candidates point of view. There is no need to explain about your childhood, hobbies or schooling. Instead this is an invitation to convince the interviewer what you can offer the company through your education, training or experience. Yes, you can describe your cocurricular activities; interest or part time work provided they have some relation with the job you are applying for. As you have to prove your credibility for the job, it is important to explain how you attracted in this particular kind of job, company and your key accomplishments in the previous job. Again the time allotted to a particular candidate would be limited and hence one should make most out of it focusing on the above-mentioned points. Question: 3. What's Your Biggest Weakness? Answer: This is a typical and bit difficult question that every job applicant faces. Here are certain tips to tackle interview questions particularly this one. Interviewer wants to check your challenging ability in facing adverse situation. However, the important thing that one should keep in mind that after discussing your weakness point always try to mention the measures you have done to overcome it. One should not confess something big but should consider a weakness that is real, understandable, work related and relatively harmless. The interviewer is always in search for your ability of self-assessment and a commitment and your effort for self-development. Select a weakness that can be seen both in positive as well as negative, but should not directly related to the job for which you are being interviewed. Examples Procrastinate - I used to have a tendency to procrastinate but now I am prepared to make a strict schedule for all my projects even setting up a deadline. Time management Because of my busy schedule time management is a problem for me. But I have recently purchased a PDA that can help me in keeping better organized.

Speaking in front of a group I used to get nervous while speaking in front of a group but now taking public speaking classes and have become much more comfortable. Perfectionist Most of time I focus a little more on my project with intend to be a perfectionist. That brings a little more stress but now I when I am working on a project, first I list out all priorities and then started work on it. Q. What do you know about this Bank? Ans.~This question is one reason to do some research on the concerned Bank before the interview. Find out where they have been and where they are going. What are the current issues and who are the major players? who is the CMD , When established, Whatz PLR etc. Question: Why do you want to work for this Bank? Answer: The answer to this question should show that you are interested in making a long-term career in this Bank. This may take some though but here your research on the conerned Bank will help you in giving a good answer. Describe a similarity between your and the Bank's needs. Also explain that as both needs are coincide with each other it will beneficial for the Bank as well as your career. Question: Explain how you would be an asset to this Bank? Answer: This question provides you a chance to highlight your positive points relating to your job and how you can give benefit to the Bank with your effort. Think a little ahead as far as your relationship and bank is concerned. You can also mention that you are looking for the right opportunity to apply your present skills and at the same time develop new ones from the experience and that would be an asset to the bank. Question: Why should we hire you? Answer: Explain how your knowledge, skills, ability and experience and willingness to learn new things make you the best candidate for the position and point out how those things according to the needs of the organization. Never compare yourself with any other candidate. Question: What are your strengths? Answer: There can be numerous answers to this question but your answer should be always related to the current job you are interviewing for. You can mention some of professional strengths such as your ability to work under pressure, leadership skill, ability to focus on projects, positive attitude in working etc. Question: What is more important to you: the money or the work? Answer: "Money is always important but work is most important". This is the most simple and effective answer.

Question: Do you consider yourself successful?

Answer: One should always answer yes following a brief explanation. The best answer should be like this: Yes I can consider myself successful as I have certain set goals from which I have achieved and rest is on the track. Question: Why do you think you would do well at this job?

Answer: Provide several reasons including your interest, skills and past experience with other organization that can prove you. Question: What is your ideal work environment ?

Answer: In an ideal work environment all employees are treated as fairly as possible irrespective of their position with equal opportunity to learn and contribute for the betterment of the organization.

Question: Tell me about your ability to work under pressure. Answer: This is to assess your attitude towards pressure. To answer this question give an example related to youre past job and how did you handle it. Dont hesitate to tell that usually you dont easily cope with pressure but add that knowing the deadline in advance helps in working better in that condition. Question: What motivates you to do your best on the job? Answer: This answer is based on your own feelings so it can be different for everyone. Example courage to face new challenge, a hunger to achieve something new and a little recognition and identity really makes me to do the best on the job. Question:. Do you think you are overqualified for this position?[ If u've done MBA, M.Tech etc.] Answer: Don't analyze your qualification and just say that you are well qualified for this position. Question: . Do you think that your academic performance truly reflect your talents? Answer: Don't say that you deserved better marks rather you may mention that if you had avoided certain mistakes, perhaps you would have performed better. But you have learnt lessons from it. .Question:. Are you creative? Are you analytical? Can you work under pressure? Answer: Hey, you got to give an affirmative answer with a suitable example as these questions test your confidence and capability. Since past achievements are indication for your future success talk about your past experience, achievements and while explaining stick to what you can do. Also discuss a particular assignment in which you excelled yourself.

Question:. Are you willing to work overtime? Nights? Weekends?

Answer: Be totally honest while answering this. It depends on your own comfort, so really doesn't matter much. Question:. What is the biggest mistake you have committed? Answer: Don't say that you have not done any mistake rather tell them any one of your mistake and mention what lesson you have learnt from it, so that you will not repeat the same in future. Now some final tips ~ * Have active hobbies (no listening to music, etc. unless you are really an afficionado) * Know yourself well. Be comfortable with yourself (its difficult) * If possible, have work-ex * Fill the applications meticulously. Check,re-check, double -check. * Take part in presentations, group discussions,interviews from now. * Keep copies of all form sent by you. * Whatever you write in the forms and say in the interview must be logical * Be smartly dressed, but not flamboyant * Be polite, assertive ; not aggressive. * Treat the interviewers like GOD * Be logical, not emotional * Highlight your strengths; blunt your weaknesses For the GD * Read ET/ Business Standard daily and Yojna. * Read Business today/ Business India regularly * Read Pratiyogita darpan,Yojna,Outlook / India today regularly * Improve your general awareness - it takes time * Watch News on TV; get things from the horses mouth. * Have an opinion on everything - it matters * Be clear and analytical * Speak substance, not quantity * Make your presence felt

Now Some Imp. Questions frm Banking & Economy..... Eclectic collection by Shweta Sharma.....Thanx for her gr8 efforts....

General Interview Question 1. About Microfinance 2. RBI functions 3. RBI's objective

4. About RBI's exchange control 5. RBI GOVERNER? 6. RTGS 7. NEFT 8. CRR, SLR, Balance Sheet... 9. about the recent relaxation in the SLR rate .. 10. Tell us about the public sector insurance companies in India? 11. The policies of lic.. 12. The chairman of lic.. 13. about foreign exchange 14. how bank earn income 15. diff b/w draft ,cheque 16. what u knw about financial inclusion 17. what is bank ? 18. RRB 19. CBS in detail........how to connect computers in CBS branch(as i am from IT) 20. types of NPA -types of npa ?
21. precautions before opening an account as a banker. 22. Who is CMD of our Bank 23. Who are the founder of bank (this i forgot that time) 24. why should banking be encouraged 25. askd balance sheet of syndicate bank which i read on website 26. KYC norms n financial inclusion 27. how would u relate ur subject with banking? 28. job of a project manager? 29. Abt Statistical Term? 30. RBI's Monetary Policy? 31. CRR & SLR?(Current Rate) 32. Financial Inclusion & Bank's step Regarding this? 33. wht is management by objective 34. Maslows need theory is dat applicable 35. wht is self actualization 36. what is diff between debit and credit card 37. Current ratio.....difference between Fund flow & Cash Flow 38. What is NRI and how they help economy? 39. What Acts banks use to take possession of property in case of loan default ? 40. do u have an account in bank?how much money do u have in ur account?wat is the new thing dat has been introduced for saving account? 1. what is break even point and formula? bill of exchange 42. mark to mark trading 43. orbitration 44. futures and options

45. define short,long 46. short selling 47. demat acoount 48. do u hav any trading exp? 49. abt SEBI, SEBI head 50. intraday trading 51. primary and secondary mkt,ipo,fpo and so many... 52. - Diff between Sales and Marketing. (easy) 53. R you satisfied with Ur life, Do U want to change anything. 54. WHATS NABARD PLEASE EXPLANATION 55. wht is called market integration? 56. what is banking assurance? 57. what are the various ways to transfer funds in a bank from one account to another? 58. when did financial reform happened? 59. Which types of services bank provide 60. .DBD 61. working capital 62. wat is EMI 63. How to calculate EMI 64. banking Ombudsman- like ombudsman some other ? i said tribunal 65. abt retail loans 66. question abt economic meltdown, subprime crisis, gdp. 67. what s indiaz gdp. 68. savings account. 69. Like Stock market , Shares.. 70. money supply 71. inflation 72. -wpi &cpi 73. what is core banking solutions 74. what is domestic territory in gdp(i dnt knw) 75. abt balance sheet and its format 76. interest rate on current a/c and saving a/c deposit 77. asset-turnover ratio, how it is calculated 78. current ratio 79. statutory reserve 80. contigent liabilities 81. car ratio 82. financial term 83. why bank needs margin for giving loan----

84. What is happening in banking sector these days? 85. How your background of International Business 'd be helpful to the banking sector. 86. ) What is the work of federal bank & OCC (just saw its full form in wiki--Office of the Comptroller of the Currency) in USA? 87. He told me a sentence & asked me to elaborate it. Sentence's like-- " Indian Govt has nationalized banks for the inter-sectoral & inter-regional growth & development of....." 88. What is growth & development? 89. Should we de-nationalize the banks in current scenario? Are you agree? 90. What's India's International Policy? (I told it's governed by EXIM policy, released last year,,& few points about it) 91. Should banks be merged? 92. How is Indian economy doing? 93. Which things must be kept into consideration before withdrawing stimulus packages? 94. explain rural banking? 95. have u heard about the term 'selective credit control' 96. ratio analysis 97. current ratio 98. current assets and liabilities 99. what is burden in accounting?( 100. break even point in marginal costing ? 101. variable cost and fixed cost. 102. what is capital adequacy ratio 103. loss comes to which sid of b sheet 104. why looss is an assets

105. what is shut down point 106. what is economics 107. what is solvency ratio 108. what is liquidity ratio 109. What is liquidity?? 110. what is the meaning of "liquidity is tight"?? Its effect on banking??? effect on industries??? 111. types of banks 112. what is cooperative banks 113. how is it different than our banks at rural areas 114. define deveolpment bank ? 115. what is SIDBI 116. where is the head office of sidbi 117. what is IMF 118. what is discount rate 119. what is BC ratio?? 120. recently RBI gave directive to open branches in villages having more than 2000 population ........how will banks achieve this??? 121. den from economics....wot is GDP n its factors...sum qstns about 122. agricultre sector...... 123. Tell us abt private & puble sector banks ? 124. Tell us about Urban cooperative banks 125. tell us about current account and saving account.... 126. FULL FORM of ECGC.-- I said this give export credit to exporters and export companies 127. How important and what are the means of marketing for banking? 128. Different skills required for HR effectiveness 129. what is deemed dividend 130. what r the jobs of ombudsman 131. what is venture capital 132. Abt features of Currency note? 133. Base rate? 134. Baroda Next campaign? 135. Alternate banking? 136. What is Equitable Mortgage. 137. Who signs On 500 & 1000 Rupee Note. 138. what are the 3 'C' kept in Mind before giving loans ? 139. What are Tangible & intangible assets ? Give Examples ? 140. RBI Vice President. 141. What is Tally. 142. Full form of IFSC.( 143. what is natiolisation of banks nd when 144. largest psu bank

145. how irda regulates insurance sector ? 146. What is Pseudo Marketing 147. What are contents in marketing 148. then Marketing Research 149. tell me some company name which do marketing research in India 150. Why L&T in news recently 151. What is derivative? 152. What is LC? 153. Types of LC? 154. What is Exchange Market? 155. What is exchange rate? 156. Who are main players in Exchange market? 157. Who is Market maker?--158. What are the services offered by the bank for farmers? 159. What would you do as an agriculture officer to help the farmers of India? 160. Insurance co. with which BOB has tied up for selling insurance? 161. - what is YIELD CURVE 162. venture capital 163. savings account; interest rate; who decides , fixed deposit interest -are they same for all banks ? 164. autonomy to banks 165. balance sheet 166. elements of balance sheet ? 167. international standards of banking ?? 168. What is Mortgage and reverse mortgage? 169. What is monetary policy and fiscal policy? 170. Interest rates on Current and Savings a/c? 171. What is the Autonomy given by RBI to the banks???? 172. what is projectile motion. 173. what is financial market 174. what is differnet between fianncial mkt and vegetable mkt . 175. what is working capital. 176. what is stock market. 177. What is debt equity ratio ? 178. is marketing compulsory for banks? 179. what is final a/c 180. what is partnership firm. 181. defination of current asset. 182. wht are banking products. 183. zero bugedting?? 184. finanicial ratio analysis??

185. capital account convertebility?? 186. what is new devlopement in banking???? 187. how much private bank in India 188. work of IT in banking? 189. given a chance what field u want to join? 190. ATM 191. monetry policy, 192. As a branch manager..what wud u do for Women empowerment? 193. Hw will u use ur IT knowledge in marketing? 194. Define RRB(Regional Rural Banks)? 195. Define Internet nd mobile banking? 196. Diff bw cooperative nd commercial banks? 197. Tel 7 public sectors bank.. 198. what are scheduled banks? 199. what is SLBC 200. cross selling ? Few More Interview Questions 1. Healthy discussion about IT sector&jobs(lasted for 7-8 mins) 2. About SHG 3. About NGO 4. Foreign secretary? Today's news about foreign secretary 5. How IT ll be helpful in banking? 6. About local newspaper editor? 7. why recession had impact on IT sector in India not on banking... 8. nearest planet of the Sun. 9. Missworld.. 10. Missworld.. 11. Lokashabha Speaker.. 12. home minister... 13. Whom do like better sachin or bradman and why? 14. which lady in karnataka won the gold for India in asian games ? (i am from kerala) 15. What are the major public sector offices present there and so on... 16. about finance minister work 17. parts of computer 18. storage device 19. backup device 20. seats in lok sabha 21. head of rajya sabha and name 22. chief minister of jharkhand(i dont know) 23. who was 1st president of india ,who ws first lady ips n dgp of India 24. .wat is d capital of mizoram

25. adarsh scam 26. silicon valley? 27. abt CAG and 2-G scam? 28. Abt Computer Programing Basic Difference between FORTRAN & C++? 29. Abt MS Office Difference Between MS-Excel & Power Point? 30. Chief Minister Of AP & Governor of UP? 31. LIC Housing Finance scam 32. About Indian Navy ..... 33. Interests in sports ? I said cricket and football , they said name 2 trophies realted to each ? 34. Capital of Mizoram ?( 35. When I screwed up question 8 they asked 4 south India states and their languages ? 36. but now we see many women at top positions in marktng also?dont u believe in women enpowerment? 37. any other acts for women enpowerment? 38. what is NAREGA Y it is in news and 3-4 qs on this issue. 39. About telecomm Issue 40. WHAT IS MS OFFICE? PLEASE EXPLAIN 42. What is Cloud Computing 43. What is Fishing 44. Latest news abt nano 45. is apiculture? 46. what is barack obamaz opiniion abt outsourcing? 47. International Conferences and G20 where its held? 48. National Level Conferences on economics and banking..( 49. who is the economic adviser 50. what is the official name for memorandum of understanding farmers-classification on basis of the land they posses 51. who introduce CALCULAS (sorry sir)they told me-Isac Newton 52. who is newton, what did he do?

53. gravity and law of motion 54. first law of motion 55. third law of motion 56. area of trapezium 57. who is lionel messi , and from which country he plays.

58. .what is CFC(chloro floro carbon)? effects of CFC?answered regarding Ozone layer. 59. than they asked why ozone layer is necessary for us? 60. who is sunderlal bahuguna ? 61. What's Textile industry's current status (as i used this once in my answer, though told a bit about it) 62. what is technology behind disc?? 63. what is difference bw computer applicatons & information technology??explained them 64. what is modem ? 65. what is DBMS 66. define RDBMS 67. what is LP ??(as im from maths lp menns linear programming) 68. blogging,twitter etc....n tats it....intrvw over.... 69. What is the imporatnce of IT in Banks 70. What is database- Give name of some DB

71. full forms of HTTP,PPT 72. have u watched 3 idioys ?? on which novel it is based?? 73. whos the author of "u can win"??

74. whos the author of the book "7 habits of highly succesful people"?? 75. whos chairman of planning commisiion?? 76. whos deputy chairman of planning commision?? 77. Nelson Mandela's autobiography? 78. How many tigers are there in India?

79. M.P. Chief Minister 80. M.P. Finance Minister 81. M.P. Governer 82. Bhopal Mayor. 83. regulatory bodies of different sectors lyk telecommuniction. insurance, banks etc 84. Scope for Horticulture in India 85. how many number systems are there. which one is used in computers- what are the digits of binary.. what does mean by 0 and 1. 86. What is AADHAAR- How it is useful ? 87. wht is Ram,extension of powerpoint and excel. 88. port,internet ,intranet 89. what is byte and bit? 90. Wat is datastructure,datawarehouse and datamining?

91. Who is the founder of infosys? 92. Who is the governor of tamilnadu? 93. Q Name some IT companies.How do u rate these? 94. )What is Ohm's Law?

95. What's d function of Modem? 96. What are d parts os Speech? 97. What are d figure of Speech? 98. Tel speed of light n speed of sound.. 99. Who is d chairman of SBI? 100. How many states r dre n name them. 101. How many oceans r dre n name them.. 102. Tel name of few countries 103. India is surrounded by which two seas?? 104. Name d ocean in which d name of d country comes 105. What is the price of 3G mobile 106. Then what is the difference between CDMA and GSM mobiles?? 107. on political science, 108. some questions on digital circuits like AND , OR and NOR gates (my stream is computer science engg. in graduation) 109. haryana state specialty 110. why BIHAR is in the news for last 2 year. 111. hw rajyasabha members r elected.. 112. disscuss the issue of mullapperiyar issue... 113. happiest moment 114. gd TOPIC- THE KEY TO NATIONAL PROSPERITY LIES IN DEVELOPMENT OF AGRICULTURE 115. VERY FRIENDLY N NO CHEAP QUESTIONS LIKE WEIGHT OF CRICKET BALL, HEIGHT OF BAT ETC... 116. GD Topic - Should Regional Parties banned or not 117. Local Governance 118. Powers of Vice President of India 119. Women Reservation 120. Name the sons of shah jahan- who among them locked him up and why? 121. Who is Condoleeza Rice and who is the current secretary of state of US? 122. up till when was calcutta capital of india? 123. Who is the cm of kerala and with whom currently he is having a quarrel and why?What will you do if you were in his place? 124. Which Indian club first beat british in football and who scored the winner? 125. Who is Dominique Lapiere and name the book he wrote?

126. saving culture in india" 127. dat evn after havin al such experiences.. since 2001(parliament attack) n til the very recent ones.... mumbai terror attcks... india has not been takin any strict actions...

128. gd: India's diversity is it's strength" 129. Who wrote sanskrit grammer?? 130. paddy cultivation in kerala ,Spices what they are used for etc

131. what federalism is and about the famous social networks? 132. eGovernance 133. Should govt retrict electronic media. 134. whats Focal point? 135. what is refraction? 136. what is reflection then? 137. What are the challenges India is facing in Power Sector? 138. Nuclear power. 139. Which is the cheapest source of energy? 140. When did five year plans start? 141. gd: Globalisation of Economy has made Nationalism irrelevant". 142. Nationalism, Terrorism, Secessionism, etc. 143. andhra pradesh e governanace, 144. infosys foundation works

145. byraju foundationworks 146. project shakti 147. TISCO jameshpur 148. Nike case,bottom of pyramid initiatives all jaipur foot,e chaupal of itc,hindustan liver annapurna iodized salt 149. abt satyams case?? 150. gd: is economic development a prerequisite for social justice. 151. what do u understand by social justice? 152. gd topic: should capital punishment be abolished.......... 153. who is sania nehwal? how old is she? 154. what is the maiden name of Sonia Gandhi? (Maino... though i didn't know it...........) 155. THE KEY TO NATIONAL PROSPERITY LIES IN DEVELOPMENT OF AGRICULTURE 156. T20 CRICKET V/S NORMAL CKT 157. GD TOPICS TILL NOW: 158. Privatization in higher studies During the interview 1 Don't forget to close the door after you have entered the interview hall. 2 Don't forget to ask permission before coming in. Ask" May I come in, please" 3 Don't forget timely salutation when you have reached near the table of the chairman. Greet them according to the time. 4 Don't sit down on your own. Wait for the chairman's invitation to take a seat. But sit immediately. 5 Don't start of on your own. Let the chairman initiate the proceeding. 6 Don't speak too fast. Let every word you speak be clear and audible to all the members. 7 Don't make artificial or excessive gesticulation. Try to be as normal as possible. 8 Don't be emotional on any particular point just to win the favor of the interview board.

9 Don't interrupt the others. Let the chairman or the member complete his question. Only after he has finished speaking, in case you have not followed, you may request him to repeat. 10 Don't enter into any arguments with the chairman or any member of the board. 11 Don't try to avoid questions. If consecutively two or more members have put their questions, reply to each one in the same order. 12 Don't give evasive or confusing answers. If you are not sure of something be frank and politely say" Sir I am not aware of such a thing" or "Sir I am sorry I do not know' 13 Don't fiddle around with your buttons, your hair or anything else as it shows your nervousness. 14 Don't change your stand. Be consistent in the line of argument you have chosen unless properly reasoned. Do not give self contradictory or conflicting answers. 15 Don't readily agree with everything the interviewer says, if you have valid arguments to support your point of view. In case of disagreement be polite and say" I beg to differ, sir because..........." and try to convince him of your own point of view. 16 Don't try to gain favor of the chairman or any of the members by giving a biased opinion, to please him. This will not show your maturity or integrity. 17 Don't enter into any political controversy. Never try to gain the favor of the interviewers by speaking against or in favor of any particular community. 18 Don't give up. While presenting a point, don't stop abruptly until the topic is changed by the interviewer. 19 Don't miss the opportunity to compliment the interviewer e g " I hear this for the first time, sir" --------------------------------------------Few more: 1 Make sure that you are courageous through out. Remember to say" please" "Thank you" etc as often as you can. 2 Be comfortable and relaxed. You have no reason to suffer from an inferiority complex. You want to be selected and the interviewers before you have the task of finding a suitable candidate. It is a situation of mutuality. 3 If confronted with an odd or confusing question, don't become nervous. Instead try to answer with clarity and confidence. 4 Be attentive and alert throughout the interview. 5 Speak in a clear voice and make sure each word is audible to the interviewers. 6 Be a good listener so that you know what is being asked. If you are unable to understand any question, request the members to repeat it saying "I beg your pardon". Don't start your answer until you have understood what is being asked (Don't frequently ask for repetition, but re-state for confirmation). 7 Give well thought out and balanced answers but be prompt so that the interviewers are able to ask as many question as they like. You have to help them make a proper judgment. You can do that only by giving your best. Your much delayed answers may indicate your lack of clarity.

8 Be relaxed through out, without showing any sign of anxiety. Try to give the impression of being an "ambitious young man willing to take on any challenges". 9 Look at all the members one by one while addressing your answers and don't concentrate all the time on the chairman or any particular member of the board. 10 When you are replying to a question asked by any particular members, look at him directly and address your answer to him. 11 Maintain a pleasant expression throughout. You should not look ill at ease, anxious or bored. 12 If you are discussing a serious problem, you should adopt a serious expression. You can not continue to smile when a grave or tragic situation is being discussed. 13 If the chairman or any member appreciates your discussion or the point you have made, take the opportunity to immediately thank him for the compliment. Finance Banking Interview Questions: If you could buy one stock today, what would it be and why? Can you explain the effect of rising interest rates on the United States economy? What are the main issues ABC Company has to face before entering a given industry (Porter framework)? Explain the techniques you use to value firms? What do you mean by cost of capital? When do you use a WACC versus a cost of equity?

Behavioral Interview Questions:

Do you think you have leadership quality? Can you explain when did you show leadership? Have you think you can perform well in a group? What is your most noted accomplishment? What are your positive traits or strengths? What are your negative traits or weaknesses? What you can do for the company others people can't? Explain an example when you had a personal conflict and how you resolved it? Tell a time when you had an ethical dilemma and how you resolved it. What type of person do you find difficult to get along with? WHY BANKING??

Banking sector have a wide scope for all professionals. Like CBS branches, IMPS (Mobile Banking: Inter Bank Mobile Payment System).......You should show your interest in Banking

sector........... Banking is the field where there is lots of opportunity for growth. From my study I have gained some quality experience which I can use at any sector I go. So regardless of my qualifications I will try to fulfill the requirements of any organisation in which I have been trained in my course during my studies. Now A days banking is not only confined to paper and Pens.. you are under CBS.. whose basics I know. I can better fullfill your requiremnts than a normal candidate... I need a job for my security and I will try to excell it in my choosen job.. Why Banking after MCA or B-Tech (CS) ? As far as Public Sector Bank Job is concerned I also need a secured job and career growth is very high. Watever field it may be, If I work with my best efficiency, I can satisfy myself, it may be Software or Finance Field where I can serve for a longer period. During my studies I have handled immense pressure of working in software projects in a team which requires difficult logic. I have gained the quality experience of working under tremendous pressure with HIgh Team Spirit. I think I can better fit to a Bank. I think, as a computer trained officer I will be able to handle all hardware, software, and Networking related difficulties in a Branch till the Engineer comes to that place.

IMPORTANT Points TO Remember:

AVOID HAND MOVEMENT AVOID LOOK UP AND DOWN DO NOT BANG ON THE DOOR AVOID HIDING EYES IT SHOWS LACK OF CONFIDENCE DO NOT FORGET TO WISH THE BOARD DO NOT SIT UNTILL THE BORD ASK YOU TO DO SO NEVER PUT YOUR FILE OR HAND ON THE TABLE DONT IRRITATE WHILE THE BOARD QUESTIONING DO NOT TRY TO DEFEND YOURSELF IN WRONG ANSWWERS DO NOT MAKE NOISE WHILE SEATING AND LEAVING THE CHAIR DO NOT BE NERVOUS Important Schemes:

** Star Suraksha For Saving Accounts ** Star Sanjeevani For NPA Recovery ** Star Connect For Interncet Banking ** Star e-Remmit For remitting money from USA ** Bingo Card Debit Card specially designed for Students with OD facility upto Rs 2500

Name of Some Major Rating Agency: @@ Moodys @@ S & P @@ Domestic @@ CRISIL @@ CARE @@ CARE @@ Brickwork Ratings @@ ICRA Body Language in Interview

Everybody uses body language during the interview, but very few are prepared to be a winner in the body language game. Body language is merely the smaller, less prominent nonverbal cues that we give others while communicating. Following are some typical interpretations of body language cues: Openness and Warmth: open-lipped smiling, open hands with palms visible, unbuttoning coat upon being seated. Confidence: leaning forward in chair, chin up, putting tips of fingers of one hand against the tips of fingers of other hand in "praying" or "steepling" position, hands joined behind back when standing. Nervousness: smoking, whistling, pinching skin, fidgeting, jiggling pocket contents, running tongue along front of teeth, clearing throat, running fingers through hair, wringing hands, biting on pens or other objects, twiddling thumbs, biting fingernails (action itself or evidence of), tongue clicking. Untrustworthy/Defensive: frowning, squinting eyes, tight-lipped grin, arms crossed in front of chest, pulling away, chin down, touching nose or face, darting eyes, looking down when speaking, clenched hands, gestures with fist, pointing with fingers, chopping one hand into the open palm of the other, rubbing back of neck, clasping hands behind head while leaning back in the chair. As you can see, there are far more negatives than positives--including many that we are typically consciously aware of. This list is given not so that you can artificially adopt the positive body language techniques, but more to help you recognize and avoid the negatives. If you have a habit of doing any of the above negatives, remove that action from your pattern of behavior before it sends the wrong signal. Concentrate on removing it now so you will not have to think about it during the interview. And keep in mind the opposite side of the desk. As you talk with an interviewer, be aware of

(although not preoccupied with) their body language and nonverbal cues. Do not try to read in more than i A Non-Resident External (NRE) account is a bank account thats opened by depositing foreign currency at the time of opening a bank account. This currency can be tendered in the form of travelers checks or notes For NRI Account ## Account Opening Form duly filled in. ## Account may be introduced by an exisitung customer of the branch or may be verified by present banker or by Embassy Officials abroad. ## Copies of imprtant pages of passport , duly authenticated by Notary public. NRO Account A Non-Resident Ordinary (NRO) account is the normal bank account opened by an Indian going abroad with the intention of becoming an NRI. An NRI can also open this account by sending remittances from his home country or by transferring funds from his other NRO account. It offers the same facilities as an NRE account, except that any repatriation done through this account should be reported to RBI by filling up prescribed forms The accounts of earswhile Resident Indians are designated as Non-Resident Ordinary (NRO) Accounts. NRIs can also open NRO accounts collecting their local accruals in India. The rates of interest on domestic deposits are applicable to these accounts . IT is deductive at source on the interest Rate. How do NRE and NRO accounts differ?

@@@ Funds remitted from overseas sources or local funds that would otherwise have been sent to the accountholder abroad can instead be transferred to NRE Accounts. @@@ On the other hand, local funds that arent eligible to be remitted abroad must be credited to an NRO account.

*******************************************************************

Can you transfer funds fromanNREto anNROaccount and vice versa? &&& The Government of India has permitted NRIs to open rupee accounts in India in order to repatriate funds from their home countries. &&& Its easy to transfer funds fromanNREto an NRO account. But its not possible to transfer

funds from an NRO account to an NRE account. &&& Once you transfer funds fromanNREtoanNRO account, the amount is non-repatriable. Consequently, you cannot transfer it back. Major Objectives behind Nationalisation of Banks in India

The nationalization of commercial banks took place with an aim to achieve following major objectives. Social Welfare : It was the need of the hour to direct the funds for the needy and required sectors of the indian economy. Sector such as agriculture, small and village industries were in need of funds for their expansion and further economic development. Controlling Private Monopolies : Prior to nationalization many banks were controlled by private business houses and corporate families. It was necessary to check these monopolies in order to ensure a smooth supply of credit to socially desirable sections. Expansion of Banking : In a large country like India the numbers of banks existing those days were certainly inadequate. It was necessary to spread banking across the country. It could be done through expanding banking network (by opening new bank branches) in the un-banked areas. Reducing Regional Imbalance : In a country like India where we have a urban-rural divide; it was necessary for banks to go in the rural areas where the banking facilities were not available. In order to reduce this regional imbalance nationalisation was justified. Priority Sector Lending : In India, the agriculture sector and its allied activities were the largest contributor to the national income. Thus these were labeled as the priority sectors. But unfortunately they were deprived of their due share in the credit. Nationalization was urgently needed for catering funds to them. Developing Banking Habits : In India more than 70% population used to stay in rural areas. It was necessary to develop the banking habit among such a large population. The major limitations of the bank nationalization in India are:Inadequate banking facilities : Even though banks have spread across the country; still many parts of the country are unbanked. Especially in the backward states such as the Uttar Pradesh, Madhya Pradesh, Chhattisgarh and north-eastern states of India. Limited resources mobilized and allocated : The resources mobilized after the nationalization is not sufficient if we consider the needs of the Indian economy. Some times the deposits mobilized are enough but the resource allocation is not as per the expansions. Lowered efficiency and profits : After nationalization banks went in the government sector. Many times political forces pressurized them. Banking was not done on a professional and ethical grounds. It resulted into lower efficiency and poor profitability of banks. Increased expenditure : Due to huge expansion in a branch network, large staff administrative expenditure, trade union struggle, etc. banks expenditure increased to a dangerous levels. Political and Administrative Inference : Many public sector banks badly suffered due to the

political interference. It was seen in arranging loan meals. It ultimately resulted in huge nonperforming assets (NPAs) of these banks and inefficiency. Interview Questions for Electrical Engineer Asked

1. what is Volt, current, Power 2. What are Non Conventional Sources of Energy? 3.what is BEE (Burea of Energy Efficiency? 4. Electricity Act 2002? 5. Bachat Lamp Yozana? 4. what is 1 unit( 1KWH)? 5. Difference Between Electrical and Electronic Engineering? 6. Why we do grounding? 7. what are Renewable and Non renewable sources of Energy? 8.Which is more harmful AC or DC? 9. How much AC supply do we get at your homes? 10. What is UPS and Invertor? 11. what is Ohm's law? 12. Majority of electrical power in india is produced from which source? (Thermal Power) 13. Where are Nuclear Power plants Located in India? 14. what is a Transformer?

They dont go into Details but they do ask all the basics and practical things ... As an Electrical Engineer.. You should be aware of grounding, earthing, different types of energy sources, basic

definations of Current, voltage, resistance, power, energy ,nuclear fission and fusion etc .. you may refer any stndard buk whch u've studied 4 sem. xams.... headquarters Organisation-Headquarters UNO - New York UNICEF - New York UNESCO - Paris UNIDO - Vienna WHO - Geneva UNFPA - New York ILO - Geneva IMF - Washington DC WTO - Geneva International Court Of Justice - The Hague International Atomic Energy Agency - Vienna World Bank - Washington D.C. International Committee of the Red Cross - Geneva International Maritime Organisation - London Universal Postal Union - Berne Food and Agricultural Organisation - Rome World Meteorological Organisation - Geneva SAARC - Kathmandu Amnesty International - London Transparency International --- Berlin World Intellectual Property Organization ------- Geneva International Renewable Energy Agency Abu Dhabi (UAE) (Interim HQs) Commonwealth of Nations ----- London International Standards Organisation------- Geneva .Difference between the financial sector before and after globalization? 2. What is infrastructure lending? Why banks should lend for infrastructure projects? 3. Your role model in banks? 4. Why were the banks nationalized? 5. What safety features r maintained by banks in net banking?

6. How did you prepare for interview? 7. Differences between budget and draft budget. 8. What is the work of a PO? 9. What are new innovations going on in banking industry? 10. Being engineer how will u make a difference & prove yourself different from other engineers? 11. Why dollar still falling in terms of rupees despite strengthening of American economy? 12. What is CASA? 13. How ATM works? 14. Impact of globalization on banking Sector? 15. How computer will be helpful to farmers? 16. How will you use your Computer skills for farmer as a banker? 17. What is d diff b/w national song and national anthem? 18. In what way will exchange rate affect export import? 19. What is rupee appreciation and depreciation? 20. What is called as exchange loss? 21. How do exporters and importers overcome these exchange losses? 22. What is CIBIL? 23. Will CIBIL publish defaulters picture and info in papers? 24. What is economic reforms and when it occurred? 25. With 9% economic growth in how many yrs economy will double? 26. How many companies are in nifty? 27. What is the most important part of bank's service to a customer? 28. In International Business the Role of banks? 29. What happens when a CBS Bank server crashes in a place by disaster like tsunami? 30. Willing to relocate? How will you manage, as you may be unaware of local language? 31. How banking is different from insurance sector? 32. What is the difference of General insurance and life insurance?