Sunday, January 6, 2013

IBPS BANK EXAMINATIONS - BANKING AWARENESS RAPID READING EXERCISE- PART: 027








01. Government security that is a claim on the government and is a secure financial instrument which guarantees of both capital and interest is called as gilt edged security
02. Insurance companies operate in the call money market as lenders
03. As per prudential norms of RBI, lending of scheduled commercial banks on a fortnight average basis should not exceed 25 percent of their capital fund
04. The market for bankers acceptance which or out of trade transactions, both domestic and foreign is called as bankers acceptance market
05. An unsecured loan extended by one corporate to another is called as inter corporate deposits
06. Interest is calculated on actual/365 days basis in respect of the following products namely; call money, notice money and term money
07. Interest is not calculated on actual/365 days basis in respect of the following products namely; Government of India dated securities
08. An Institution which accepts deposits, makes business loans, and offers related services is called as commercial bank
09. A bank which acts as a banker of other banks is called as central bank
10. The following are the functions of exchange banks – remitting money from one country to another country, discounting of foreign bills, buying and selling gold and silver and helping import and export trade
11. Consumer banks are usually found in United States of America and Germany
12. A bank account in which a depositor can deposit his funds any number of times he likes and can also withdraw the same any number of times he wishes is called as current account
13. In Recurring deposit account, a specified amount is deposited every month for a specific period, say 12, 24, 36 or 60 months
14. An Inter bank funds transfer system, where funds are transferred as and when the transactions are triggered is called as real time gross settlement
15. Accepting deposits is the primary function of any bank
16. Collection and payment of cheques, rent, interest etc on behalf of their customers is the secondary function of any bank
17. Buying, Selling and keeping in safe custody, the securities on behalf of their customers are called as the secondary functions
18. Acting as trustees and executors of the property of their customers on their advice – the secondary functions of the bank
19. Remitting money from one place to the other through bank drafts or mail – the secondary functions of the bank
20. The operative guidelines for banks on mobile banking transactions in India were issued in 2008
21. To use smart cards/debit cards/credit cards for the purchase of an item or for payment of a service at a merchant’s store, the card has to be swiped in a terminal known as point of sale terminal
22. The branding line of Bank of Baroda is  - India’s International Bank
23. The logo of Bank of Baroda is known as Baroda sun
24. Lot of banks in India these days are offering M-banking facility to their customers. The full form of M in M-banking is Mobile
25. State cooperative banks do not form part of the scheduled banking structure in India
26. Section 14 of Banking Regulations act, 1949 prohibits a banking company from creating a charge upon any unpaid capital of the company
27. A bank is under a statutory obligation to honour the customer’s cheques vide section 31 of the Negotiable Instruments act 1881
28. Nationalised banks have been permitted to offer their equity shares to the public to the extent of 49 percent of their capital as per amendments made in 1994 in – Banking companies (acquisition and transfer of undertakings) act, 1970
29. Five banks are at present associates of State Bank of India
30. At present there are twenty nationalized banks in the country
31. The number of foreign banks operating in India are – 32
32. BCSBI stands for Banking Codes and Standards Boards of India
33. The main function of a commercial bank can be segregated into – payment system, financial intermediation and financial services
34. Reserve Bank of India prescribed that all scheduled commercial banks should maintain their SLRs in dated securities noted by RBI; T-bills of Government of India and State Development loans
35. In case a depositor wishes to withdraw his deposits prematurely, banks charge a penalty and allow the same
36. The percentage of India’s population lives in rural areas – 65% to less than 70%
37. In case a depositor is a sole proprietor and holds deposits in the name of the proprietory concern as well as in the individual capacity, the maximum insurance cover is available upto Rs. 100000.00
38. Banks give contracts to third parties in order to manage support services like help desk support, credit card processing and call support service
39. In case of FCNR – B scheme, the period for fixed deposits is – for terms not less than one year and not more than five years
40. The past due debt collection policy of banks generally emphasizes on – respect to customers, appropriate letter authorizing agents to collect recovery, due notice to customers.
41. According to the risk diversification principle of bank lending, diversification should be in terms of customer base, geographic location, nature of location etc
42. The aspects which are outlined by the loan policy of a bank are – rating standards, lending procedures, financial covenants etc.,
43. The paid up capital of non scheduled bank is less than Rs. 5 lakhs
44. Scheduled bank means a bank – which is included in the second schedule to the RBI act, 1934
45. A foreign bank is one which is incorporated outside India
46. The Unit banking system is prevalent in United States of America
47. In terms of section 5(1) (e) of the Banking Regulations act, 19490, a banking company means any company which transacts the business of banking in India
48. Universal Banking is one which undertakes the functions of a Development financial institution as well as a commercial bank
49. The commercial banking system in India consists of scheduled and non scheduled banks
50. EBT – stands for Electronic Benefit Transfer

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