August 26, 2020

Understanding the fundamental parts of Banking

Why banks declare dividends?

Commercial organizations declare dividends when they make profits or surplus from their business. Part of the profits is shared with the share holders of the company in the form of dividends. Banks as commercial organizations, also adopt the same procedure for their shareholders.

Why public sector banks present dividend cheques to the central government ?

The majority shareholders of public sector banks is the government and hence when dividends are declared the government is the biggest beneficiary.

The number of subsidiaries of SBI (State Bank of India) is reducing why?

The number of subsidiaries of SBI has come down to 5 from 7 after the merger of State Bank of Saurashtra earlier and State Bank of Indore recently in 2010, with the parent bank. This is as a consequence of making State Bank of India as the biggest bank in India and enlarging its size to complete with global banks.

What is the percentage of government holding in public sector banks?

The government holding in public sector banks cannot be reduced below 51 percent as per current law. The holding in individual banks may differ depending upon the stake of the government which at any given time is more than 51 percent.

Why HDFC bank and ICICI bank not qualify as  Indian banks?

Any company with more than 51 percent foreign equity is considered as a foreign company. HDFC with 64 percent and ICICI with 79 percent foreign equity fall in this category through majority voting rights are with Indians.

What is meant by liquidity of banks?

Liquidity of banks indicates the ability to convert its assets into cash on demand. The liquid assets of a bank is defined by its holdings in cash balances with RBI, money at call and short notice, inter bank deposits due within 30 days. It is extremely important to have liquidity for banks and hence the need to maintain cash reserve ratio and statutory liquidity ratio which are cash and investments in government securities.

What are payment systems?

Payment systems have been defined as the instruments, rules and procedures that enable users to meet payment obligations. Types of payment instruments are cash, paper ( promissory notes, bill of exchange, drafts, cheques), plastic cards and electronic funds transfer methods.

Banks are supposed to observe Prudential norms. What are these Norms?

Banks are an important sector of the economy and hence need to be fully protected and safe. As per international best practices, bank are required to observe certain norms relating to capital adequacy, asset classification and provisioning for proper functioning.


July 25, 2020

Legal amount/Currency Notes/Bill of exchange/ Promissory note/Courtesy amount

  Legal amount and Courtesy amount

Legal Amount:- The amount in words is called the legal amount as per CTS(Cheque Truncation System) 2010 gudilines of RBI.

Courtesy Amount:- The amount in figure is called the courtesy amount as per CTS 2010 guidelines of RBI.

  
Currency Notes and Promissory Note

Currency notes being money, though full fill a number of promissory notes, are not promissory notes and have been excluded from the definition of u/s Section 4 of Negotiable Instrument Act and are governed by Indian Currency Act Section 21, Promissory note is an instrument (a) in writing, (b) containing an unconditional promise, (c) signed by maker (d) to pay certain sum of money, (e) to or to the order of a certain 'person' or the 'bearer' of the instrument.
 

Bill of Exchange and Promissory note made payable to bearer-

As per section 31 of RBI Act, persons other than RBI or Central Government can draw, accept, make or issue any bill of exchange or promissory note payable to bearer on demand.
Promissory note definition comes under Negotiable instrument act 1881-section 4, Bill of exchange definition comes under Section 5 of Negotiable instrument act 1881.

July 24, 2020

Fundamental Parts of Computer


Computer:- It is an input device Which process the raw data into informations.

Computer Definition:- (1) Computer is an electronic device Which works according to the instruction which is given in it.
(2) Computer is an electronic device Which process the input and gives the desired output.

          Full form of the Computer-
C- Common
O- Operating
M- Machine
P- Particularly
U- Used in
T- Trade
E- Education and
R- Research

    Characteristics of Computer-
(i) Accuracy
(ii) Speed
(iii) Storage Capacity
(iv) Input output Capacity
(v) Deligience
(vi) Versatile
      
        The main parts of Computer-
(i) System Unit(two types- Desktop type and Tower type)
(ii) Monitor or Visual Display Unit or Cathode Ray Tube( two types- Monochromatic and Multi-colour monitor)
(iii) Keyboard ( two types- Standard and Enhanced) 
         Keys of keyboard-
Enter key, Text Editing key, Arrow key, Modifier key, Function key, Numeric key pad,Num lock key, Shift key,Caps lock key, Esc key, Return or Enter key, Scroll lock key, Back space key,  Cursor Control keys, Home key, End Key, Page up key, Page down key, Tab key, Ctrl and Alt key, Pause key, Print Screen key, Delete key, Main keys.
(iv) Hard Disk Drive
(v) Floppy Drive
( vi) Compact Disk Drive
(vii) Mouse
(Viii) Printer( four types- Dot Matrix Printer,Line Printer and Laser Printer) 
(ix) Modem
(x) Scanner ( it is input device, Types- it is four type- Handhold, Flatbed, 3-Dimentional and Film scanner)
(xi) Central Processing Unit( three parts- Memory, Arithmetic logic unit and Control unit

      Front side of Computer:- Reset button, safty lock,Floppy disk drive, Compact Disk read only memory drive,power switch, Turbo button,Lights.

    Back side of Computer:- Serial ports, Parallel ports,Fan housing, Universal serial bus port, Power in or out Socket, Video monitor port,Key board port, Expansion Slots.
       
           Inner side of Computer:- Micro processer or Central Processing Unit,Read only memory Chips,Central Processing Unit support chips, Power supply Unit, Output adapter Card, Hard Disk Drive, Compact Disk read only memory drive, Real time clock, Motherboard, Random access memory chips, Empty RAM chips slot,Maths co- processer,Disk Drive control key, Expansion Slots, speaker.


July 12, 2020

Cyber security and Cybercrime,

Why Cyber Security?

Cybercrime is one of the fastest growing criminal industries in the world today, surpassing even the drugs trade in terms of profitability. 

Cyber crimes are criminal acts that are performed with the aid of a computer. Crimes that fit this category are identity theft, mischievous hacking, theft, and more.

There are many ways that you can become a victim to cybercrime, from falling for an online phishing scam to having your PC(personal computer) hacked and personal information stolen. Like all crime the best way to prevent it is to be fully aware of the dangers, so that you can take sensible precautions to reduce the chances of it happening.

Different types of Cybercrime

With so many words out there to describe different types of Cybercrime it helps if you have an idea of what each one means. Here is the list of the most commonly used terms related to cybercrime..Worms,Spyware,Trojans, Adware,Phishing Scams, Computer viruses, Identity theft, Ransomware, Brute- force-attack, Petya, DNS hijacking etc.

Petya: Petya is a family of encrypting  ransomware that was first time discovered in 2016. The malware targets Microsoft Windows based Systems, infecting the master boot record to execute a payload that encrypts a hard drives file System table and Prevent windows from booting.
It subsequently demands that the user make a payment in Bitcoin in order to regain access to the system. Variants of Petya were first seen in march 2016, which propagated via infected email attachments.

In June 2017, A new variant of Petya was used for a global Cyberattack, primarily targeting Ukraine.  The new variant propagates via the Eternal Blue exploit, which is generally believed to have been developed by the US National Security Agency and was used earlier in the  year by the WannaCry Ransomware.

Brute Force Attack: It is a Password and Cryptography attack that does not attempt to decrypt any information but Continue to try a list of different passwords, words, or letters. For Example- a simple Brute Force Attack may have a dictionary of all words or Commonly used passwords and Cycle through those words until it gains access to the account.
A more complex brute force attack involves trying every key Combination until the Correct password is found.

Incognito mode: Alternatively referred to as private browsing, In private browsing, private window. Incognito mode is a setting that prevents Internet history from being stored. For Example- when you visit any webpage, any text, pictures and cookies loaded in the page is all stored on your computer.

DNS Hijacking: It is a process in which an individual redirects quarries to a domain name server. It may be accomplished through the use of malicious software or unauthorized modification of a server.
Once the individual has control on the DNS(Domain Name server or System), they can direct others who access it to a web page that looks the same, but contains extra content such as advertisements. They may also direct uses to pages containing malware or a third party search engine.

How to prevent cybercrime crime when it happening on a personal level?
# Always make sure that you factor in the cost of the antivirus software when buying a new PC. The few bucks spent protecting yourself now will save you a lot of time and money in the future. Norton and McAfree are the biggest providers of online security.

# Keep it updated, Naver give out your information to anyone online. If an email claiming to be form your bank arrives in your inbox do not reply to the email. Phone your bank directly( face to face) to ask what they want. Your bank should never need to verify your private information via phone.

# Keep your passwords complicated and even think about changing them on a regular basis.

# Don't give out too much personal information on your social networking sites.

# Protect your children by installing antivirus software parental controls.

July 10, 2020

IBA/IDBI/IBPS/IRDA

What is the Indian Bank Association?

IBA(Indian Bank Association) Coordinates the various important activities of the banking industry in the country. It was established in 26 September, 1946 with 22 members to meet the diverse needs of the member banks.
A change in its rules in 1990 enabled the financial services industry and other related units to join as associate members. IBA is the body which decides the wage settlements for employees of the public sector banks.

The public sector banks include 20 nationalized banks including IDBI(industrial development bank of India) bank limited and the State bank group of state bank of India and its 5 subsidiaries.

IDBI(Industrial Development Bank of India): The IDBI was established on 1st July 1964 under an act of parliament as a wholly owned subsidiary of the Reserve Bank of India. On 16th February 1976, the ownership of IDBI was transferred to the Government of India.
Headquarters of IDBI is at Mumbai.

IBPS(Institute of Banking Personnel Selection): The IBPS is an autonomous agency in India. Which started its operation in 1995 as Personnel Selection Services (PSS). In 1984, IBPS became an independent entity at behest of Reserve Bank of India and Public Sector Banks.

IRDA(Insurance Regulatory and Development Authority): IRDA is Regulator for insurance sector, The IRDA was constituted in 2000, and set up by the Parliament under the IRDA act, 1999. It is 10 member body with a chairman, 4 whole time members and 4 part time members.

June 14, 2020

Regulatory bodies and their sectors in India

There are some important Regulators and their sectors and also Head Quarter Which are given below- 
Regulator: Sector: Head Quarter     

(1)Insurance Regulatory and Development Authority (IRDA): Insurance Industry-Hydrabad.  

(2)Forward Market Commission(FMC): Commodity Market-Mumbai.                                   

(3) Pension Fund Regulatory and Development Authority (PFRDA): Pension Sector- New Delhi.               

(4) Securities and Exchange Board of India (SEBI):Security and capital market stock broking and merchant banking, chit fund companies- Mumbai.                                               

(5) Telecom Regulatory Authority of India(TRAI):Telecommunication Industry- New Delhi.                           
(6) Reserve Bank of India (RBI): Financial system and monetary policy- Mumbai   

Financial Regulatory Bodies in India :-  

In India, the financial system is regulated with the help of independent regulators, associated with the field of insurance, banking, commodity market, and capital market and also the field of pension funds. On the other hand, the Indian Government is also known for playing a significant role in controlling the field of financial security and also influencing the roles of such mentioned regulators. You must be aware of the regulatory bodies and their functions, before a final say. The most prominent of all is RBI or Reserve Bank of India. Let us look in detail about various Financial Regulatory Bodies in India. 

Reserve Banks of India (RBI):-          Reserve Bank of India is the apex monetary Institution of India. It is also called as the central bank of the country.

The Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934. The Central Office of the Reserve Bank was initially established in Calcutta but was permanently moved to Mumbai in 1937. The Central Office is where the Governor sits and where policies are formulated. Though originally privately owned, since nationalization in 1949, the Reserve Bank is fully owned by the Government of India.

The Central Office is where the Governor sits and is where policies are formulated. Though originally privately owned, since nationalization in 1949, the Reserve Bank is fully owned by the Government of India.

Securities and Exchange Board of India (SEBI):-

Apart from RBI, SEBI also forms a major part under the financial regulatory body of India. This regulatory body(SEBI) is associated with the security markets in Indian Territory. Established in the year 1988, the SEBI Act came into power in the year 1992, 12th April. The board comprises of a Chairman, Whole time members, Joint secretary, member appointed, Deputy Governor of RBI, secretary of corporate affair ministry and also part time member. There are three groups, which fall under this category, and those are the investors, the security issuers and market intermediaries.

Pension Fund Regulatory and Development Authority (PFRDA):-

Pension Fund regulatory is a pension related authority, which was established in the year 2003 by the Indian Government. It is authorized by the Finance Ministry, and it helps in promoting income security of old age by regulating and also developing pension funds. On the other hand, this group can also help in protecting the interest rate of the subscribers, associated with the schemes of pension money along with the related matters. PFRDA is also responsible for the appointment of different other intermediate agencies like Pension fund managers, CRA, NPS Trustee Bank and more.

Forward Markets Commission (FMC):-

FMC also plays a major role. It is the chief regulator of the commodity(MCX, NCDEX, NMCE, UCX etc) of the Indian futures market. As per the latest news feed, it has regulated the amount of Rs. 17 trillion, under the commodity trades. Headquarter is located in Mumbai, and the financial regulatory agency is working in collaboration with the Finance Ministry. The chairman of FMC works together with the Members of the same organization to meet the required ends. The main aim of this body is to advise the Central Government on matters of the Forwards Contracts Act, 1952.

Insurance Regulatory and Development Authority (IRDA):-

Lastly, it is better to mention the name of IRDA or insurance regulatory and Development authority, as a major part of the financial body. This company is going to regulate the apex statutory body, which will regulate and at the same time, develop the insurance industry. It comprised of the Indian Parliamentary act and was passed duly by the Indian Government. Headquarter of this group is in Hyderabad, and it was shifted from Delhi to Hyderabad. These are some of the best possible points, which you can try and focus at, while dealing with financial bodies of India                     

June 04, 2020

Reasioning Syllabus (Bank Exam Syllabus)


Verbal Analytical Logical Non-Verbal
Sitting Arrangement Syllogism Statement and Course of Action Analogy
Puzzle Inequality Statement and Assumption Series
Data Sufficiency Machine Input Statement and Argument Classification
Direction and Distance Decision Making Cause and Effect
Order and Ranking Drawing inference
Blood Relation
Coding Decoding

May 28, 2020

5 Tips to Remember Vocabulary

Gaining mastery in a new language can seem like an impossible task, especially when that language is as complex as English! As experts say, many students preparing for competitive exams like Bank Po /Clerk, IELTS, GRE,  GMAT, CAT and other government exams have the following query: 
" After working doggedly to improve my English, I still find it difficult to memorize the large number of words that I come across. It feels like all my hard work comes to naught"
In our opinion, the approach taken by the students needs to be rectified, as merely memorizing a lot of words together will never work for you. You will end up forgetting most of them and fail to recognize when you need it the most. But fret not ( don't worry), for we have come up with short list of 5 tips that has been immensely beneficial for the students. Here are the tips you should follow:

(1) Tip one: Interest- Remembere that topics that interest you will be easier to learn. Therefore, carefully select words that you will find useful or interesting. Choose topics that relate to your life at the moment to make the words you learn more relevant. For Example, if you have a college seminar next week,learn some English vocabulary to use in seminar. Even if you don't use English in the actual seminar, connecting the words to real situation will help you remembere them.

(2) Tip two: Hear and Watch- First of all watch everything with subtitles, hear news in English, see news in English. If there is any particular word being used by a character that seems unfamiliar to you, note it down and also see the situation in which he is speaking the same. This will provide you context for that word (that means you know contextual meaning) and you will be able to use it in a similar situation in real life!

(3) Tip three: Limit them- Instead of mugging up 20-30 words at one go, restrict yourself to learning 5-10 words per week only. Use them in different conversation that you have with people. Learn their meanings and visualize what kind of conversations you could have with people in that week where these words could be used. Remembere, building a solid repository of words this way will take some time so prepare for your exams way before they are scheduled and most of all, don't become impatient. The results will show eventually.

(4) Tip Four: Connect- Its easier to memorize words based on common theme. Make your own connections between words and possibly organize them in a spider digram or on the same pages of your notebook.

(5) Tip five: Associate- Assign different colours to different words. This association will help you recall vocabulary later. To prevent the system from becoming confusing make sure you have a consistent theme. For Example, you could use different colours for verbs, nouns and adjectives.

May 26, 2020

Number of Entities to Set up ATM labels,

RBI Permits 4 Non bank entities to set up label ATMs; The Reserve Bank of India has issued 'Certificate of Authorization' to four non bank entities:- ( Muthoot Finance, Prizm Payment Services, Tata Communication Payment Solutions and Vakrangee Limited) to Set up White Label ATMs in the Country.                                                                              
Most of the ATMs belong to banks, but the cash dispensing machines which are owned and operated by non banking companies are called White Label ATMs.
RBI Permits Srei to roll out White Label ATMs; Srei Infrastructure Finance is  started its White Label ATM's between Uttar Pradesh and Bihar with a pilot of 200 Tire-III towns.

May 24, 2020

Basic Savings Bank Deposit Account (BSBDA)

Definition and Purpose:  Under the guidelines issued on August 10,2012 by RBI, Any individual including poor or those from weaker section of the society, can open zero balance account in any bank,BSBDA guidelines are applicable to all Scheduled Commercial banks in India, including foreign banks having branches in India. The aim of  introducing ' Basic Saving Bank Deposit Account' is very much part of the efforts of RBI for furthering financial inclusion objectives. 

The Basic Savings Bank Deposit Account (BSBDA) is a type of account that aims to increase financial inclusion by providing basic banking facilities with minimum charges. There is no minimum balance requirement in BSBDA.
The main and basic facilities provided under Basic Savings Bank Deposit Account (BSBDA) are mentioned below:


Withdrawals Limit Minimum and Maximum: No requirement of minimum balance,  It is a normal banking service available to all (not only to poor people, it is for all and any one can open a BSBDA Account).Services include deposit and withdrawal of cash at bank branch as well as ATM card No limit on the number of deposits that can be made in a month; However maximum of four withdrawals in a month. Facility of ATM card or ATM-cum-Debit Card
These facilities are provided without any charge by the bank. No charge will be levied for non-operation/activation of in-operative 'Basic Savings Bank Deposit Account'. 
Relaxations in KYC norms for BSBDAs (BSBDA Small Account)
When BSBDA is opened on the basis of Simplified KYC, the accounts would be treated as "BSBDA-SMALL account".                                         
The conditions of 'BSBDA-Small Account' are:
Total of all credits in a financial year does not exceed Rs. 1 Lakh;Total of all withdrawals and transfers (Debits) in a month does not exceed Rs. 10,000; and The balance at any point of time does not exceed Rs 50,000. Small accounts are valid for a period of 12 months initially which may be extended by another 12 months if the person provides proof of having applied for an Officially Valid Document. Small Accounts can only be opened at CBS linked branches of banks.

Bank Po/Clerk Practice Link OR Resources ( Top resources)

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