Sunday, July 24, 2016

How can I know everything about banking in India?

Common written examinations are conducted by IBPS for recruitment as officers and clerks in public sector banks in the country.

The examinations are conducted in two stages

The preliminary examination consists of the following subjects namely:
- General English
- Quantitative aptitude
- Reasoning ability

Those who score the minimum cut off marks are eligible to appear for the final examination which consists of the following subjects
- General English
- Quantitative aptitude
- Reasoning ability
- General awareness with special reference to Banking
- Computer awareness

You have to select appropriate books available from the market and understand the information.

Banking awareness published by consists of the details in regard to banking required for the examinations conducted for recruitment of officers and clerks in banks.
- It consists of bullet points in regard to various topics related to banking covered in more than 100 pages.
- This apart, there are mock test papers consisting of 1000 questions exclusively on banking along with answers and the candidate can do the practice test and check up with the answers.
- The following are the topics covered in the book
- Candidates who are willing to get the training kit can write to the following email id: - A. Gauri Sankar

- You can also get some information from the following blogs and website:
- www.

Recommended topics for discussion

01.Indian financial system – banks, capital markets and insurance markets
02.Structure of banking system – scheduled commercial banks and non scheduled commercial banks
03.Role and functions of the central banker – Reserve Bank of India
04.Types of banks in the country – commercial banks, development banks, housing development banks, industrial development banks, export and import banks etc.,
05.State Bank of India and its subsidiaries
06.Nationalised banks in the country – stage : I, II and III
07.Old private sector banks and new private sector banks
08.Foreign banks in the country
09.Regional Rural Banks
10.Local area banks
11.Deposit schemes available in the banks – demand deposits and term deposits
12.Demand deposits – savings bank and current account
13.Term deposits – Fixed deposit, reinvestment deposit and recurring deposit
14.Non resident Indians, Persons of Indian origin
15.Various types of non resident deposits – NRE. NRO, FCNR and RFC
16.Types of various foreign inward remittances
17.Know Your Customer guidelines
18.Various risk categories of customers – Low risk, Medium risk and High risk
19.Negotiable instruments act – Negotiable, non negotiable and semi negotiable
20.Cheques – Parties to a cheque – Types of cheques – Crossing of cheques – MICR code, IFSC code – Reasons for return of cheques
21.Demand draft – Parties to a demand draft – Returning of demand drafts
22.Bills of exchange – Promissory note
23.Types of customers – individuals, joint accounts, proprietorship accounts, partnership accounts, companies, trusts, minors, associations, charitable institutions, clubs, societies etc.,
24.Types of currencies and authorities for issue of currencies in the country
25.Electronic banking – internet banking – mobile banking – automated teller machines – debit card – credit card – RTGS – NEFT
26.Terms in banks – Nostro, Vostro, Loro, Repo, Reverse Repo, Bank rate, Base rate, CRR, SLR, Marginal standing facility
27.Types of risks – Credit risk, liquidity risk, market risk, interest rate risk
28.Various terms associated with banking: Pay in slip; Remittance slip; Bouncing, teller counter, PIN number, Clearing centre, WILL, Legal heirs, Nomination, Claim, Executor, Administrator, Garnishee order, Income tax attachment order, Introduction, standing instruction, Personalised cheque book, Phishing, Point of sales, Merchant establishment, General Lien, Holder, Interest warrant, dividend warrant, material alteration, negotiation, plastic money, notary public, safe custody article, safe deposit locker, factoring, forefeiting
29.Priority sector lending, weaker sections, Direct agriculture, indirect agriculture, Culture in agriculture, revolution in agriculture, Marginal farmer, small farmer, agriculture labourer,
30.Forex – Authorised persons – Notional rate,  IE code, DGFT, OPL, Consortium financing, Basel II norms – CAMELS, Cash transaction reports, Balance sheet, Off balance sheet items, Term loan, short term loan, medium term loan and long term loan

Tuesday, July 19, 2016

What do you mean by MICR code?

MICR means magnetic ink character recognition
At the bottom of cheque, demand draft, interest warrant, dividend warrant etc., there is a separate portion called as MICR portion. This portion is specially printed with magnetic ink at the time of printing of the instrument itself.
This MICR portion consists of the following:
Cheque/DD number; MICR code and account category code
When it comes to MICR code, it consists of nine numerical digits.
The first three digits represent centre/city (Say Chennai)
The middle three digits represent the name of the bank (Say SBI)
The last three digits represent the bank branch (Say SBI, Karolbagh, New Delhi)
The account category is represented by the code - 01, 02, 03 etc., For example 01 may represent savings; 02 - current and 03- overdraft/cash credit accounts
MICR is for the purpose of speedy clearing at the clearing house, when the cheques are presented physically in the clearing house. This is possible only in clearing centres where MICR processing facility is available and not all centres.
At the time of inwarding the cheques at the collecting branch of the amount of the cheque is keyed in the micro scanner and the scanner immediately captures the following details namely - Cheque No; Name of the centre; Name of the bank; Name of the branch and account category as available from the MICR portion and the amount just keyed in by the bank clerk/teller. The cheques so scanned are sent to the clearing house along with the software details of all cheques and at the clearing house, the sorting of cheques are done within a short time.
However, on account of core banking solution recently introduced in commercial banking system in India, they follow CHEQUE TRUNCATION SYSTEM and by this system, the cheques are scanned and the scanned images are sent to the clearing house and there is no need to present the cheques physically. The physical cheques are kept at the collecting branch of the bank for future reference if any

What can I do with Rs. 1000.00 cash with me?

  • Buy some T shirts each worth Rs. 100.00 and sell them in the market for Rs. 150 to Rs. 200 in the market and earn a profit of Rs. 300 to 400 and during the next day start with Rs. 1400.00 and in this manner after some days, you will be having more than Rs. 20000.00 with you and now you are a successful entrepreneur who knows as to how use money profitably and effectively and you had acquired the qualities to become a big entrepreneur and you can very well manage even an amount of Rs. 100 crore
  • You go to a posh hotel - hire a taxi and pay the taxi charges at Rs. 200 and have your lunch for Rs. 600.00 and return to your home by taxi by paying Rs. 200.00 and now you had spent the entire amount of Rs. 1000 with you. For the next day for having lunch somebody has to provide some amount. There are only two people who can provide you the amount without any questioning - your father and mother.
  • Now you had learnt one lesson. In order to survive in the world, I have to stand on my own legs. Other than my parents, nobody is interested in me including my brothers and friends. It is necessary for me to know some business techniques by which I should reasonable money and from the money earned I can leisurely spend the amount for the purposes I want to spend.
  • Read the following proverb: When you have money, you will never bother about others - when you do not have money, nobody will bother about you. 

Monday, July 18, 2016

What is the procedure for getting revalidation for the expired dividend warrants?

The validity of the cheques, interest warrants and dividend warrants is three months only and you cannot encash the dividend warrants at present with the banks.
You do the following two activities:
  • Provide your bank account number, name of the bank, branch, IFSC code etc. to the depository (Bank branch maintaining your demat account). Once the details are recorded in their records, further dividends will be credited to your account through ECS facility and you will be getting information about such credits
  • For the expired dividend warrants - segregate them company wise. Take photocopies for all dividend warrants. For each company (Their registered office or investor relation centre) write a letter thereby furnishing the details of expired dividend warrants and request them to revalidate those dividend warrants. The company/investor relation centre will revalidate those dividend warrans and return them back to you and immediately deposit those dividend warrants with your banker. This is the only way by which you can get your entire amount of Rs. 10000.00; however, you have to spend at least Rs. 200 for sending the dividend warrants by registered post/courier to the companies. You have to prepare the letters and send them by post. Keep the copies of those letters along with copies of dividend warrants safely with you till such time the issue is settled.
  • The following is the format of letter which you can make use for sending your expired dividend warrants to the companies
  • From                                                                               Place:

    Contact mobile number:

    The Registrar
    …………………………………………………………….(Company Name)
    ……………………………………………………………..(Address of the company

    Dear Sir:

    Sub: My shares in your company – Revalidation of expired dividend warrants

    I am having shares /debentures in your company as per details mentioned below and in respect of the dividend warrants sent to me, I could not present the dividend warrants to the banker in time on account of some personal reasons and at present I am unable to present them to my banker since they have become stale dividend warrants (More than the validity period)

    I am sending the dividend warrants to you and I request you to kindly revalidate the dividend warrants and send me the revalidated dividend warrants to my abovementioned address at an early date so that I can deposit them with my banker.

    1. Details of shareholder and depository participant:

    Details required
    Details submitted
    Name of the depository participant – (Bank/Company where demat account is maintained)

    Depository participant id

    Name of the customer(Shareholder)

    Client id

    LD code (if any)

    Name of the company

    1. Details of expired dividend warrants:

    Dividend warrant Number
    Date of dividend warrant

    Name of the bank
    Name of the bank branch

    I request you to do the needful and send the revalidated dividend warrants at the earliest

    Thanking you,

    Yours faithfully,


Which bank account is better for business?

The following accounts are available in banks:
Savings deposit accounts for the purpose of saving the money
Term deposits namely - fixed deposits, recurring deposits and reinvestment deposits are available for the purpose of saving the money
Current account is available for the purpose of business
You should open one current account in the bank (Nowadays, current and savings accounts are collectively called as CASA accounts)
You can do any number of credit and debit transactions in current accounts and you can deposit any number of cheques and there are not withdrawal conditions in current accounts
No interest is paid in current accounts.
Anybody or any organisation can open current account

Is it the right time for me to invest in the shares of one big public sector bank or whether I have to wait for sometime?

Stock market prediction is very difficult
The price of any share depends upon so many factors.
Fundamentally, it is the perception of the investors about any stocks and not actually the performance of the company. The performance of the company plays a greater role in providing a better image amongst the investors. Even then, sometimes, the investors are forced to believe certain myths, inforamtion, rumours etc., which indirectly affects the value of the share in the market.
You can invest in shares as an active or a passive investor. An active investor, takes part in the activities of the share market every minute or at least every one hour.
The passive investor invests some amount in growth stocks and forgets and after a long time, he finds that the share is up by some points and he sells the share and he is happy that he has gained some profit. He avoids risk
The very active investor buys a share in huge volume by 10.00 A.M. in the morning and goes on watching the movement of share every minute and by 11.00 he sells the shares at Re. 3/- rupee share profit
I shall cite the following example
You buy ABC company shares - One share at Rs. 2000.00 - Total number of shares purchased - 1000 by 10.00 A.M. and the value of the shares - 2000000.00
You are watching the price movement - it goes up and down and finally at 01.30 P.M. you find that the share is priced at Rs. 2014.00 and your broker says that the price may be the highest for the day. Now you are selling the share through your broker and your selling and buying transactions are squared out.
You gain a profit of Rs. 14000.00 and out of the profit, you pay brokerage for buying and selling transactions - Rs. 3000.00 and your net gain is Rs. 11000.00 for the day and you should remember, that without any investment of any money in the market except by taking some risk and spending time and energy you had gained this profit.
Now this is an answer for your question
You buy the share at any time and after some days, when you feel that you can sell, you immediately sell. Even one rupee gain for a share is a profit for you. There is no ultimatum for upward and downward trends. Have one reliable broker and he will be guiding you in this connection.
Always remember when it comes to share market
Just by viewing in the paper that the price of the share is going up will not provide you even a single moment. Buy and sell it at a profit - let the profit be even a single rupee. This is the fundamental principle each investor should know 

How can I make blogs more effective and informative?

It depends upon your involvement
Somebody start their blogs and after some time, they forget.
Have some plans for your blog. You are getting information about blogs providing monetary income. Do not believe.
Nowadays, millions of bloggers are writing blogs throughout the world.
What are the advantages of starting a blog?
  • It is like your own home. You can do anything and you have more than one hundred percent freedom. You can write articles, edit the articles and delete the articles. You can upload the pictures, videos etc.
  • However, what type of posts, images and videos ? - It is upto to you. There are many blogs which portray violence, sex and pornography.
  • Initially, make your plan. You are well versed in finance. Now you can start writing articles on finance. Read a lot of books on finance from books, newspapers and magazines.
  • Fix a target of minimum ten articles per day. Start writing articles and posting them in your blog one by one. Initially write articles separately in a file, correct and edit and then post the articles in blogs so that you can eliminate sentence and grammatical errors.
  • Write original articles only. Never copy and paste the information, unless, you want to provide the information as it is. When you copy an information from other websites, please remember that you violating intellectual property rights.
  • By writing original articles, you become a good writer, improve your language and you also get the satisfaction of your articles read by some people in the world. You are providing valuable information to some people
  • After some time, you can find that your articles are immediately available on “google search”. Now you are visible to everybody by simple search. 

Can I know about E-infobook facility provided by some commercial banks in India?

The following are the salient features of E-infobook facility available from any commercial bank in India
Services available in e-infobook:
  • The last ten transactions/15 days transactions/last 30 days transactions for savings/overdraft accounts
  • In the case of current accounts, last 25 transactions can be viewed
  • Product information can be obtained
  • Statement of account can be obtained through email ids
  • The balance enquiry facility is available
  • The accounts summary can be obtained
  • Facility of knowing the location of nearest automated teller machines and nearest bank branches available
  • Information about new products and services made available by the bank is readily available
Salient features:
  • It is an electronic passbook and banking related information facility on mobile handsets namely - smartphones
  • It supports the operating systems like Android 2.2 and above; Windows 8; IOS 7.1 and above
  • The accounts are retrieved based on the availability of mobile number in core banking solutions
  • This application is available in eight lanuguages for Android and IOS version is available only in Engilish and Hindi

What is meant by consumer loan provided by commercial banks in India?

At present, commercial banks in India are providing retail loans to the customers for various purposes.
The consumer loan is a retail loan scheme which provides for purchase of consumer durables like televisions, refrigerators, microwave ovens, furniture items etc.,

Salient features of the scheme:
  • It is a loan scheme for purchase of consumer durables
  • It is available to both salaried employees and non salaried employees
  • Loans are available upto Rs. 1.00 lakhs
  • The repayment should be made within thirysix months and the repayment is by means of equated monthly instalments - EMI
  • The articles purchased out of the loan namely; refrigerators, micro ovens etc., become the securities for the loans
  • The rate of interest is as decided by the bank
  • Normally processing charges upto one percent is collected by the bank with a minimum of Rs. 250.00

Attractive features:
  • The loans are made available from all branches of the bank
  • The longer repayment period for consumer loan ensures lower equated monthly instalments and enables the borrowers to opt for a bigger and better consumer durable articles
  • In the case of prepayment of any amount, no prepayment charges
  • There are no hidden charges
  • Some banks provide even a second loan under this scheme, even before closure of the first loan
  • At present state of the art internet banking facility is available which provides loan liability details on any given day during the tenure of the loan.
  • Many banks adopt simple documentation procedure and the loans are sanctioned quickly and disbursements are immediately made

Which Indian website I shop without using CVV?

When you use your debit card or credit card for online money transactions, you have to mention your card number, name of the cardholder, expiry date of the card and CVV number on the back side of debit and credit cards.
This means that you are providing all details through online.
It is easier to get the details of your account.
Even after putting CVV number, the system venerates one time pass word which is valid for limited minutes - say ten minutes and you have to key in the one time password. Afterwards, there may not be any use with such one time pass word.
In case you are using cheque book, the culprit should know your signature and style of signing the cheque. This is very difficult and the culprits do a lot of practice and then only they use such forged signatures.
Anyhow, while you are using debit cards for online money transactions, keep always average balance and not huge balance.

How can I know the details of transactions in my account with any bank?

If you download the mini statement from automated teller machines, you will be getting the snapshot of latest ten entries and this will be only for information purpose.
In order to know the details of cheques debited’ amount credited’ reference number if any, you have to get a pass sheet from the bank or through internet banking or you have to get your passbook updated.
There is no other way

Which job in the bank is found to be better?

There are lot of positions in any bank.
Normally people think about the bank employees sitting in the desks in the front office inside a bank branch.
There are many back office operations - foreign exchange, recovery, marketing, credit management, balance sheet management, information technology, asset liability management, risk management etc.,
Clerks, Officers and above are posted to these departments and the employees have to carry out the responsibilities in these areas.
However, in order to enter into the bank, either you have to join as clerk or as an officer (probationary officer) and for some managerial cadre, they recruit people through direct recruitment.
For this purpose, you have to write common written examinations and appear for interview and you have to very severe competition in this connection
Once you join any bank, try to learn many things out of experience and you have opportunities to work in various positions before your retirement.
During my forty years’ of service in a nationalised bank, I had worked in many positions and I had performed many roles also - front office, training, forex, recovery, marketing, inspection etc.,

Saturday, July 16, 2016

What has to be done, when the automated teller machine did not dispense cash to me?

Submit a letter stating the details to your bank branch. They will take up the matter with the bank who has maintained automated teller machine and recredit the amount to you. However, you have to take  the following steps.

Recollect the following details: Name of the bank ATM; The name of the street where it is located; The name of the city where the machine was maintained; Date of transaction; Time of transaction; Amount of transaction; Your debit card number;

If you have the transaction slip - the serial number of transaction as mentioned in the transaction slip

Take a print out of the letter as per the following format (Just copy and paste in word format) and fill up the required details in the letter. Take a print out of the letter. Attach the photocopy of the transaction slip, if available.

Have a copy of the letter sent to the branch along with one more photocopy of the transaction slip and original with you

Normally banks will settle the matter within seven days. In case you have not received any reply from them, contact the branch once again and remind them.


From                                                                                         Place:.........
Name:.....................................                                                  Date: .........

Contact mobile/telephone No:....

The Branch Manager,
..........(Name of the bank)
..........(Name of the branch)

Dear Sir:
Sub: My savings/current account No:...........................with your branch
With reference to my savings/current account as mentioned above with your branch, I attempted to withdraw cash through automated teller machine as per details mentioned below; however, I could not get the cash from the machine on account of some technical reasons.
I request you to kindly verify the details and recredit the amount not received by me through the automated teller machine to my above savings bank account.
Name of the accountholder

Category of account
Account Number

Name of the bank  and branch where the account is maintained

ATM machine pertains to which bank?

Location of ATM machine (Street/City)

Transaction date and time

Transaction amount
Debit card Number

Details of complaint
Debit card was used in the machine by keying in PIN number; however, cash was not delivered
Yours faithfully,