Axis Bank's Profit Set To Hit A Wall For First Time in 20 Years: Report

Axis Bank shares came under selloff pressure on Wednesday, following the private lender's warning about higher bad loans in FY17. Shares of other big lenders - ICICI Bank and State Bank of India - were also hit as asset quality fears returned back to haunt investors. Banking shares have been under pressure over the last two quarters, after an RBI-mandated asset quality review led to a surge in bad loans. It now seems that the problem will linger for longer than earlier estimates, traders said.

Here are 10 things to know about Axis Bank's Q4:

1) Axis Bank's new bad loans increased by Rs 1,474 crore in the March quarter, but gross non-performing assets (as a percentage of total loans) were nearly flat at 1.7 per cent on a sequential basis in Q4.

2) In a surprise move, India's third largest lender by assets put corporate loans worth about Rs 22,600 crore under a "watch list", saying 60 per cent of these loans (or Rs 13,560 crore) could turn bad (non-performing) in two years. Half of the slippages could come between April-September 2017.

3) Around 50 per cent of Axis Bank's stressed loans under watch are in iron and steel and power sectors; most of the loans in the watch list were likely sanctioned in FY10-FY12.

4) The loans under Axis Bank's "watch list" account for just 13 per cent of its corporate loans and 4 per cent of its overall loan portfolio. However, as these loans become non-performing, Axis Bank will have to provide for them, which will impact credit cost.

5) Axis Bank expects its credit cost to rise to 125 basis points in FY17 from 111 basis points in FY16. In worst case scenario, credit cost could rise to 150 basis points.

6) The overall slippages, from corporate loans not under watch and small and medium enterprise (SME) and retail segments, could be much higher. According to Nirmal Bang Securities, Rs 16,000 crore of loans could turn bad over the next two years. In FY16, loan slippages stood at Rs 5,300 crore.

7) Axis Bank's performance in FY17 would be extremely weak, said Kotak Institutional Equities. "We do not see earnings growth for the first time in the past two decades," the brokerage added.

8) Kotak said portfolios of the large three private banks are likely to remain broadly similar over the next few years with the exception of HDFC Bank, which does not have a large exposure to housing loans.

9) Axis Bank, which had come in for criticism about is disclosure norms last year, was praised by analysts for the early warning about potential bad loans.

10) Most brokerages remained positive on Axis Bank despite the stressed loan warning. Nirmal Bang Securities retained its "accumulate" rating on Axis Bank (price target of Rs 470). Kotak also maintained its "buy" rating on the stock (target Rs 530). However, Religare maintained its "sell" rating (target Rs 415) on the stock, saying asset quality would be a key overhang on Axis Bank.

Axis Bank shares closed 3 per cent lower at Rs 465.50, underperforming the broader Nifty, which closed 0.22 per cent higher.

Government has taken various measures to deal with the issue of Non Performing Assets (NPAs) in Banking Sector

Press Information Bureau Government of IndiaMinistry of Finance27-April-2016 13:18 IST
FM: Government has taken various measures to deal with the issue of Non Performing Assets (NPAs) in Banking Sector
The Union Finance Minister, Shri Arun Jaitley said that the Government has taken various measures to deal with the issue of Non Performing Assets (NPAs) in Banking Sector especially in case of Public Sector Banks (PSBs). The Finance Minister said that there are two categories of defaulters, viz. those who are unable to pay back due to economic slowdown both in domestic and global market and other reasons outside their control as well as wilful defaulters including loans sanctioned without due diligence by the banks. The Finance Minister said that the Government has taken various measures to deal with both these categories of defaulters. The Finance Minister Shri Jaitley was making his Opening Remarks at the Second Meeting of the Consultative Committee attached to the Ministry of Finance on the subject: “NPAs in Banking Sector” here today. The Finance Minister Shri Jaitley further said that in order to deal with default due to economic slowdown, the Government has taken various measures to revive the stressed sectors which mainly include steel, textiles, power and roads among others. Shri Jaitley said that the Government has also done recapitalization of banks by providing Rs. 25,000 crore in the last year Union Budget 2015-16 as well as in this year’s budget 2016-17. He said that transparency and professionalism has been brought in appointment process for top management positions in the PSBs including Chairmen and Managing Directors. He said the Government has taken various measures to make the management professional, has given full autonomy to the banks in taking commercial decisions without any interference from the Government.. The Finance Minister Shri Jaitley said that Bankruptcy Law has been cleared by the Joint Parliament Standing Committee and is likely to be discussed in the current Budget Session of the Parliament. The Finance Minister also said that SARFAESI Act and DRT Act have been amended to make the recovery process more efficient and expedient. The Finance minister said that wherever it was observed that number of cases in which action taken by the banks against guarantors for recovery of defaulted loans is insufficient, the Government has advised the banks to take action against guarantors in the event of default by borrowers under relevant Sections of SARFAESI Act, Indian Contract Act and RDDB & FI Act. The Finance Minister said that a direction to this effect has been issued to the banks last month. The Finance Minister also highlighted the various measures taken by the Government for revival of stressed sectors such as steel, road, power and textile sectors among others. Later the Members of the Consultative Committee gave their suggestions with regard to recovery of loans and bringing NPAs under control. Members suggested that there is need for bringing more transparency in the system and list of all the defaulters whose loans have been written off by the PSBs be made public. They asked for exemplary action against the wilful defaulters so that others do not indulge in similar activities. Some members appreciated the Government’s effort to make the appointment process for the top management positions of banks professional. Some members also suggested that there is need for restructuring of agricultural loans in order to help the farmers. Members also suggested that there should be no employment cut due to any amalgamation or merger of banks. Members asked the Government to ensure level playing field to all Indian entrepreneurs across the board. They suggested that due to wilful default by some prominent business men, others may not be considered and treated in a similar fashion. Some members suggested that a committee be constituted to finalise recovery process in case of loans given to big corporate houses by various PSBs. The Members of the Consultative Committee who participated in the aforesaid Meeting include Shri Anirudhan Sampath, Shri Baijayanta Jai Panda, Shri Dilip Kumar Mansukhlal Gandhi, Shri Kailkesh Narayan Singh Deo, Smt. Poonam Mahajan, Shri PrabhatsinhPratapsinh Chauhan, Shri Ram Charitra Nishad, Shri Sriram Malyadri, Shri Subhash Chandra Baheria, Smt. Supriya Sadanand Sule, Shri Suresh Chanabassappa Angadi (all members of Lok Sabha); Shri Anil Desai, Shri Digvijaya Singh, Dr. K.P. Ramalingam, Shri Rajkumar Dhoot, Shri Ranvijay Singh Judev, Shri Satish Chandra Misra, Kumari Selja and Shri Sukhendu Sekhar Roy (all members of Rajya Sabha). Along with the Finance Minister, the Minister of State for Finance Shri Jayant Sinha, Shri Ratan P. Watal, Finance Secretary, Shri Shaktikanta Das, Secretary, DEA, Dr. Hasmukh Adhia, Revenue Secretary, Ms. Anjuly Chib Dugal, Secretary, Financial Services, Shri Neeraj Kumar Gupta, Secretary, DIPAM, Dr. Arvind Subramanian, Chief Economic Adviser (CEA), and other senior officers of the Ministry of Finance attended the aforesaid Consultative Committee Meeting.

FINMIN NOTE JUST AN HOUR BEFORE

Media disappoints central employees about pay hike : "not before September"

 No arrears likely on allowances

The Central government employees will have to wait till September-October to get higher salaries under the 7th Pay Commission.

As per a Financial Express report, government is expecting that higher salaries released around the festival period starting withDurga Puja and Diwali will boost consumption, which will have a multiplier effect on the economy. 

Though the employees will get arrears with retrospective effect from January 1, no retrospective arrears in allowances will be given. With the move, the exchequer would be able to save around  Rs 11,000 crore. 

Government Raised Monetary Limit For Filing Appeals In Tax Cases

To reduce litigation, the Finance Ministry on Monday raised the monetary limit for filing appeals in indirect tax cases to Rs 10 lakh in appellate tribunal, and Rs 15 lakh in High Courts.

The ministry has also made it mandatory for Principal Commissioners or commissioners to hold a pre-showcause notice consultation with assessee in all cases where duty is above Rs 50 lakh, a statement said.

"The threshold limit below which appeals are not to be filed by the department in CESTAT (Tribunal) and High Courts has been raised to Rs 10 lakh and Rs 15 lakh respectively," it said.

The Central Board of Excise and Customs (CBEC) has asked officers to withdraw all cases in High Court and CESTAT where there is a precedent Supreme Court decision and against which no review is contemplated by the department.

"The CBEC has taken several measures to manage litigation and reduce disputes," the statement said.

Chief commissioners or principal commissioners have been asked to identify the cases fit for withdrawal among the cases pending in appeal before Custom Excise and Service Tax Appellate Tribunal (CESTAT) and High Courts.

The field formations have identified 2,051 and 5,261 cases which are fit for withdrawal from High Court and CESTAT respectively as per the threshold monetary limits prescribed now.

They have already filed withdrawal applications in 980 and 2,174 cases in High Courts and CESTAT respectively. Out of this, High Courts has allowed withdrawal in 250 cases and CESTAT in 202 cases.

Further to ensure quick dispute resolution, CBEC has asked officers for going into pre-showcause notice (SCN) consultation with the assessee in all the cases where duty involved is above Rs 50 lakh.

Detailed instructions have been issued to all field formations regarding the manner, in which an SCN is to be issued, personal hearings are to be granted and speaking adjudication orders to be issued. The chief commissioners have been directed to do sample verification of records of such proceedings from time to time.

"Also training or workshops are being organised to train officers to issue quality SCN, judicious adjudication orders, advocacy, in order to minimise disputes and further litigation. This will assist ease of doing business," the statement added.

Commenting on the move, EY India Tax Partner Bipin Sapra said the measures on litigation management are in line with the recommendation of Tax Administration Reform commission(TARC).

"The pre-showcause notice discussion with the assessee if applied in true spirit could drastically cut down litigation and hence the transaction cost of doing business in India," Sapra said.

Government Hikes Minimum Wage For Contract Workers To Rs 10,000

The minimum wage for contract workers has been increased to Rs 10,000 per month, Union Minister Bandaru Dattatreya said on Monday.

The Minister of State for Labour and Employment informed Lok Sabha that the wage hike has been done based on a Supreme Court verdict.

Asserting that the government is committed towards the betterment of the working class, he said workers are being protected through all the rights.

"Recently, we have increased minimum wage to Rs 10,000 at the national level taking into consideration the Consumer Price Index and Dearness Allowance. This was based on the verdict of the Supreme Court. We have linked this increase of minimum wage to pension and bonus," he said during Question Hour.

On April 17, Mr Dattatreya had said the government would bring out an executive order to ensure that contract workers get a minimum wage of Rs 10,000 per month.

"It is the endeavour of the central government to make reforms in labour laws and to proceed from minimum wage to universal wage. Because the Opposition is not cooperating in Parliament, we will do it through an executive order," he had said.

"We have taken a decision to make changes to rule 25 of the Contract Labour (Regulation and Abolition) Central Rules. Every contract worker will be entitled to get Rs 10,000 per month," Mr Dattatreya had said.

important Banking Awareness Questions for Promotion

important Banking Awareness Questions :

1. MICR code consists of how many digits?
Ans: 9 digits.
(First three digits denotes city, next three digits
representing the bank and the last three digits
representing the bank branch)

2. What is the minimum limit in RTGS system?
Ans: 2 lakhs (there is no upper limit in RTGS)

3. What is full form of CTS?
Ans: Cheque Truncation System

4. Under which service, customers may access their
bank account and perform basic transactions from
any of the member branch offices.
Ans: Core Banking Solution (CBS)

5. Exchange of cash flow in different currency is
known as:
Ans: Currency Swap

6. Assets or loans which stop performing after 90
days is known as:
Ans: Non Performing Asset (NPA)

7. Who controls the Monetary Policy in India?
Ans: RBI (Reserve Bank of India)

8. Which card is
issued by NPCI (National Payments Corporation of
India)?
Ans: RuPay Card

9. Definition of Current Account deficit:
Ans: A measurement of a country's trade in which
the value of goods and services it imports exceeds
the value of goods and services it exports.

10. Full form IFSC –
Ans: Indian Financial System Code

11. Commercial paper can be issued for a maximum
period of:
Ans: 365 days or 1 year.

12. The Mutual funds in India follow accounting
standards laid by:
Ans: SEBI (Securities and Exchange Board of India)

13. Minimum amount for Certificate of Deposit has
been fixed at:
Ans: Rs. 1 Lakh

14. AML is a term mainly used in the financial and
legal industries. Expand the term AML:
Ans: Anti Money Laundering

15. PIN is a number allocated to an individual and
used to validate electronic transactions. Expand
PIN:
Ans: Personal Identification Number

16. What is Repo rate?
Ans: It is the rate is the rate at which RBI lends
money to the commercial banks.

17. What is Stale Cheque?
Ans: A cheque which is presented to a bank after 3
months from date of issue is considered as stale
cheque and will often not be honored for cash or
deposit at a bank.

18. What is Bancassurance?
Ans: The selling of life assurance and other
insurance products and services by banking
institutions.
19. The objective of KYC guidelines is to prevent
banks from being used, intentionally or
unintentionally, by criminal elements for money
laundering or terrorist financing activities. What is
the full form of KYC?
Ans: Know Your Customer (KYC)

20. Know Your Customer (KYC) guidelines are
issued under:
Ans: Section 35A of the Banking Regulation Act,
1949

21. In BSBDA (Basic Savings Bank Deposit Account)
the credits in a financial year does not exceed
rupees:
Ans: Rs. 1 lakh

22. In BSBDA (Basic Savings Bank Deposit Account)
the balance at any point of time does not exceed
rupees:
Ans: Rs. 50,000

23. In BSBDA (Basic Savings Bank Deposit Account)
the withdrawals and transfers in a month does not
exceed rupees:
Ans: Rs. 10,000

24. At which rate RBI give loans to commercial
banks?
Ans: Repo rate

25. Full form of CASA:
Ans: Current Account Saving Account

26. In what denominations Commercial Paper (CP)
can be issued?
Ans: Rs. 5 lakh

27. What is the minimum denomination of Treasury
bills to issue in India?
Ans: Rs. 25,000

28. Who cannot issue Certificate of Deposit (CD)?
Ans: Regional Rural Banks (RRBs) and Local Area
Banks (LABs)

29. Expand ASBA:
Ans: Application Supported by Blocked Amount

30. Depositor Education and Awareness Fund
(DEAF) is maintained with:
Ans: RBI

31. Cash Reserve Ratio (CRR) is the amount of
funds that the banks have to keep with:
Ans: Central Bank (RBI)

32. What is the maximum amount per transaction
NEFT limit for cash-based remittances to Nepal?
Ans: Rs. 50,000

33. What does CAR stands for?
Ans: Capital Adequacy Ratio

34. IFSC code consists of _____ alpha numeric
code.
Ans: 11 digits
(The IFSC is an 11 digit alpha numeric code, with
the first four digits identifying the bank, fifth is
numeric (kept 0) and the last six digits represent
the bank branch.)

35. When money is lent or borrowed for one day or
on overnight basis it is known as:
Ans: Call Money

36. When money is lent or borrowed for between 2
days and 14 days it is known as:
Ans: Notice money

37. When money is lent or borrowed for a period of
more than 14 days, it is known as:
Ans: Term money

38. Treasury Bills and Certificate of Deposit are
considered as the ____instruments.
Ans: negotiable money market

39. Commercial Paper (CP) is an unsecured money
market instrument issued in the form of a _____.
Ans: Promissory note.

40. What is the upper limit in Public Provident Fund
(PPF)?
Ans: Rs. 1.5 lakhs

41. As per RBI guidelines, with effect from April
1, 2012, the validity period of Cheques, Demand
Drafts, Pay Orders and Banker's Cheques is _____.
Ans: 3 months

42. What is the time limit for an asset or loan to
be declared as Non-Performing Asset?
Ans: 90 days

43. Deposit Insurance and Credit Guarantee
Corporation (DICGC) does not cover:
Ans: Primary co-operative societies

44. RBI measure to liquidate the market:
Ans: Repo rate.

45. Full form of EFT:
Ans: Electronic Fund Transfer

46. Fastest mode of transaction:
Ans: RTGS

47. Alphanumeric code on cheque is known as:
Ans: Indian Financial System Code (IFSC)

48. Bank pays interest on savings account?
Ans: Daily Basis

49. What is the loan limit for education under
priority sector for studies abroad?
Ans: Rs. 20 lakh
(Loans to individuals for educational purposes
including vocational courses upto Rs.10 lakh for
studies in India and Rs. 20 lakh for studies abroad
are included under priority sector.)

50. RuPay Card is an Indian version of credit/
debit card is launched by which organization:
Ans: NPCI (National Payments Corporation of India)

51. Fixed Deposit (FD)Account may be opened for a
minimum period of:
Ans: 7 days

52. What is the minimum amount required to open
a Fixed Deposit (FD)?
Ans: Rs.1000

53. The Banks has converted all ‘no - frills'
accounts’ into:
Ans: Basic Savings Bank Deposit Accounts

54. 'Pradhan Mantri Jan Dhan Yojana' is a Scheme
for:
Ans: Financial inclusion

55. How much overdraft facility to be provided in
'Pradhan Mantri Jan Dhan Yojana' scheme?
Ans: Rs. 5,000

56. In CBS, C stands for:
Ans: Core

57. In CRAR, A stands for:
Ans: Assets (Capital to Risk Weighted Assets Ratio)

58. IMPS - Immediate Payment Service is an
interbank electronic instant mobile money transfer
service through mobile phones in India, the facility
is provided by:
Ans: NPCI (National Payment Corporation of India)

59. The Central Bank of India has adopted new
measure of inflation:
Ans: Consumer Price Index (CPI)

60. When a cheque is torn into two or more pieces
and presented for payment, such a cheque is
called:
Ans: mutilated cheque

61. How much fee charged to file a complaint
under Banking Ombudsman? Ans: Banking
Ombudsman does not charge any fee

62. Who is the appellate authority in Banking
Ombusdsman?
Ans Deputy Governor of RBI 63. If any customer is
not satisfied by the decision of Banking
Ombudsman, customer can appeal against the
award before the appellate authority within how
many days from the date of receipt?
Ans 30 days

64. ATMs or Cash Dispensing machine which are
owned and operated by Non-Banking Financial
Companies are called:
Ans: White Label ATMs.

65. RBI gave in-principle for Banking license to:
Ans: IDFC and Bandhan

66. Minimum capital requirement for new banks in
private sector is:
Ans: Rs. 500 crore

67. A Non-Banking Financial Company (NBFC) is a
company registered under the:
Ans: Companies Act, 1956

68. Minimum capital requirement for Non-Banking
Financial Company (NBFC) is:
Ans: Rs. 500 crore

69. The NBFCs are allowed to accept/renew public
deposits for a minimum period of:
Ans: 12 months ( and maximum period of 60
months)

70. A NBFCs cannot offer interest rates higher
than the ceiling rate prescribed by RBI? What is
the present ceiling?
Ans: 12.5 per cent per annum

71. Minimum capital requirement for Foreign banks
that want to set up operations in India is:
Ans: Rs. 500 crore

72. What is the minimum paid-up capital
requirement of both small banks and payments
banks in India?
Ans: Rs. 100 crore

73. RBI extended the timeline for full
implementation of Basel III norms till:
Ans: 31 March 2019

74. SLR ((Statutory Liquidity Ratio)is the amount
a commercial banks needs to maintain in the form
of _______before providing credit to its
customers.
Ans: cash, or gold, or govt. approved securities
(Bonds)

75. _______ is the rate at which banks borrow
funds overnight from the Reserve Bank of India
(RBI) against approved government securities.
Ans: Marginal Standing Facility (MSF)

76. Who issues Treasury bills (T-bills) in India?
Ans: Government of India

77. Treasury bills are available for a minimum
amount of:
Ans: Rs. 25,000

78. Minimum & Maximum Limit of NEFT:
Ans: no limit

79. What is the rate of interest rate on provident
fund for the current fiscal?
Ans: 8.75%

80. Govt. to implement GST (Goods & Services Tax)
new indirect tax regime from:
Ans: 1st April 2016

81. RBI extends deadline for exchanging pre-2005
currency from June 30, 2015 to
Ans: December 31, 2015

82. How much amount RBI allows in 'Tap and pay'
transactions without PIN?
Ans: Rs. 2000

83. RBI lifted a ban on carrying Indian bank notes
of Rs 1,000 and Rs. 500 denominations to and
from:
Ans: Nepal and Bhutan

84. C stands for in "KYC":
Ans: Customer

85. Pension scheme for unorganized sector:
Ans: Swavalamban

86. Full form of REIT:
Ans: Real State Investment Trust

87. Forward Market Commission merge with:
Ans: SEBI

88. Purpose of starting Minor account for 10 years
children:
Ans: Financial inclusion

89. Full form of CVV:
Ans: Card Verification Value

90. Bank of International Settlement headquarter:
Ans: Switzerland

91. Who appoints Banking Ombudsman officer?
Ans: RBI

92. IFRS full form:
Ans: International Financial Reporting Standards.

93. Corporate Social Responsibility committee
headed is by Ans: Anil Baijal

94. Which is the Regulatory body for RRBs?
Ans: NABARD

95. RBI policy related to money laundering?
Ans: Know Your Customer

96. Mutual funds regulated by:
Ans: SEBI (Securities and Exchange Board of India)

97. What is the full form of MTSS?
Ans: Money Transfer Service scheme

98. How much amount of money can RBI lend to a
bank?
Ans: 2% of NDTL

99. What RBI does to Increase its Monetary Base?
Ans: OMO Open Market Operations
100. Which rate does RBI Reduces to Increase
liquidity in market?
Ans: Repo Rate

101. After completion of 15 years, Public Provident
Fund (PPF) can be extended up to how many
years?
Ans: 5 years

102. Short term Money lending process is known as:
Ans: Call Money

103. Treasury bill tenure:
Ans: 91 days, 182 days, 364 days

104. Minimum limit for medium scale enterprises is
Rs. 5 Cr. what is maximum limit?
Ans: 10 Cr.

105. Prime Lending Rate is replaced by:
Ans: Base rate

106. Banks cannot grant Loan below which rate:
Ans: Base Rate

107. If RBI reduces CRR, what happens:
Ans: Credit Supply increases, loans get cheaper.

108. Name the scheme to include every people
under banking system:
Ans: Financial Inclusion

109. Special Drawing Right (SDR) is a monetary
unit of:
Ans: IMF

110. Cheque which is not crossed is called:
Ans: Open cheque

111. Teaser rates are related to which type of
loans:
Ans: Home loans

112. What is Teaser loan?
Ans: If a bank offers a slightly lower rate in the
initial years and higher rate in later years, it is
called a teaser loan.

113. The RBI policy rate which is purely an
indicative rate used by RBI to signal long – term
outlook on interest rates is:
Ans: Bank rate

114. The term ‘pre – shipment’ finance relates to:
Ans: export credit

115. A receipt listed in India and traded in rupees
declaring ownership of shares of a foreign
company:
Ans: Indian Depository Receipt (IDR)

116. With effect from July 2012, for calculating of
lending rates, the RBI has advised banks to switch
over to the:
Ans: Base Rate systems

117. Mobile banking fund transfer limit in a day:
Ans: Rs. 50,000

118. The seed capital of Bhartiya Mahila Bank is:
Ans: Rs.1000 crore

119. “Lender of the Last Resort” by Banks is
known as:
Ans: RBI

120. “Fixed deposit” is also referred to as:
Ans: Term Deposit

121. The holidays for the banks are declared as
per:
Ans: Negotiable Instruments Act

122. In banking business, when the borrowers avail
a term Loan, initially they are given a repayment
holiday and this is referred as:
Ans: Moratorium

123. Regulator of Micro, Small and Medium
enterprises in India:
Ans: SIDBI (Small Industries Development Bank of
India)

124. A worldwide financial messaging network which
exchanges between banks and financial institutions
is known as:
Ans: Structured Financial Messaging System
(SFMS)

125. The term “Smart Money” refers to:
Ans: Credits Card

126. The maximum deposit amount insured by
DICGC?
Ans: Rs. 1 lakh per depositors across all banks

127. With reference to a cheque which is the
‘drawee bank’?
Ans: The bank upon which the cheque is drawn

128. In which of the following fund transfer
mechanisms, can funds be moved from one bank to
another and where the transaction is settled
instantly without being bunched with any other
transaction?
Ans: RTGS

129. Bad advances of a Bank are called:
Ans: Non – performing Asset

130. By increasing repo rate, the economy may
observe the following effects:
Ans: rate of interest on loans and advances will be
costlier

131. Increased interest rates, as is existing in the
economy at present will:
Ans: mean higher cost of raw materials

132. The sole authority to issue and manage
currency in India:
Ans: RBI

133. In India, one- rupee coins are issued by:
Ans: Govt. of India

134. Fixed deposits and recurring deposits are:
Ans: repayable after an agreed period

135. When a bank returns a cheque unpaid, it is
called:
Ans: dishonour of the cheque

136. What is ‘Demat Accounts’?
Ans: Accounts in which shares of various companies
are traded in electronic form

137. When the rate of inflation increases:
Ans: purchasing power of money decreases

138. Banks in India are regulated under:
Ans: Banking Regulation Act, 1949

139. Banking sector falls under which of the
following sectors?
Ans: Service Sector

140. ASBA scheme is related to the purchase of:
Ans: IPO

141. In a bank, which of the following are the usual
types of accounts?
Ans: Current accounts, Savings bank accounts and
Term deposit accounts

142. The most powerful tool used by the Reserve
Bank of India to control inflation is to:
Ans: raise interest rates

143. NEFT and RTGS in banking terminology speak
of:
Ans: electronic fund transfer from bank to bank

144. The ownership of public sector banks rests:
Ans: jointly with the Government of India and the
shareholders from the public

145. If a cheque is postdated, the bank on which it
is drawn:
Ans: will not honour the cheque before the date of
the cheque

146. Regulator of Capital Market in India:
Ans: SEBI

147. First Indian Bank to introduce credit card:
Ans: Central Bank of India

148. RBI nationalized in:
Ans: 1949

149. Loans of very small amounts given to low
income groups is called:
Ans: Micro Credit

150. RBI established in:
Ans: 1935.

RBI Notification on merger of Private Banks

RBI Notification on merger of Private Banks

In another master direction, a compilation which consolidates instructions on rules and regulations framed by the RBI under various Acts, including banking issues and foreign exchange transactions, the central bank provided direction for issue and pricing of shares by private sector banks.

The scope of master direction on mergers will cover “an amalgamation of two banking companies and amalgamation of an NBFC with a banking company.” In both the cases, the voluntary amalgamation will become effective after RBI’s approval.

As per the direction, the decision of amalgamation should be approved by the respective boards with two-thirds majority and not just by members present and voting. Also, the draft scheme of amalgamation should have approval of shareholders of each banking company through a resolution passed by a majority representing two-thirds of the shareholders.

In case of an NBFC merging with a private sector bank, the master direction says that all accounts should be KYC-compliant as they would eventually become accounts of the banks after amalgamation.

Allotment of shares to investors will be subject to compliance which requires investors to obtain specific prior approval of the RBI if the proposed acquisition results in aggregate holding of 5 per cent or more of the paid-up capital of the bank

PF Body To Launch System For Discouraging Premature Withdrawals

 The Employees' Provident Fund Organisation (EPFO) plans to launch a 'One Employee One EPF Account' system on May 1 to dissuade premature PF withdrawals and encourage state governments to join its pension system.

The decision was taken on April 21 in retirement fund body EPFO's internal meeting, a day after the government rolled back its decision to tighten PF withdrawal norms restricting subscribers to withdraw the employer's share of PF contributions (3.67 per cent of basic wages) before the age of 58 years, among other things. (Read: After protests, government withdraws new PF rules)

During the meeting, EPFO's Central Provident Fund Commissioner, V P Joy, discussed about the unrest regarding the PF withdrawal norms.

Mr Joy emphasised the need for effective communication with employees and employers, and stated that frequent withdrawals by employees on each job change, which is also encouraged by employers, need to be addressed by good service and simple interface.

He was of the view that employers and employees must be able to view and access the money trail pertaining to their individual profiles.

"Improvement in services and better pension systems would mean that we can open an additional channel for pension services."

"If the EPFO services and schemes are made more employee-friendly then a reference can be made to state governments for joining the EPF pension systems," he said.

Mr Joy also informed his colleagues that EPFO proposes to launch a system of 'One Employee One EPF Account' on May 1.

He stated that once EPF services are improved, more people will voluntarily join the EPF system.

On the issue of compliance by municipalities, Mr Joy stated that legal actions for enforcing compliance in respect of all employees, whether regular or contractual be taken by all field offices.

He stated that all running contracts as well as future contracts by municipalities be examined to enroll all eligible employees and to secure compliance.

Mr Joy raised the specific issue of PF default by tea gardens/plantations and informed that a departmental order has been received from the Commerce Secretary to take action against such plantations.

He also stated that reference be made to Tea Board and to concerned state governments to find out who is the owner of the land on which tea garden is situated and make the owner liable for payment of statutory dues.

PF Body To Launch System For Discouraging Premature Withdrawals

The Employees' Provident Fund Organisation (EPFO) plans to launch a 'One Employee One EPF Account' system on May 1 to dissuade premature PF withdrawals and encourage state governments to join its pension system.

The decision was taken on April 21 in retirement fund body EPFO's internal meeting, a day after the government rolled back its decision to tighten PF withdrawal norms restricting subscribers to withdraw the employer's share of PF contributions (3.67 per cent of basic wages) before the age of 58 years, among other things. (Read: After protests, government withdraws new PF rules)

During the meeting, EPFO's Central Provident Fund Commissioner, V P Joy, discussed about the unrest regarding the PF withdrawal norms.

Mr Joy emphasised the need for effective communication with employees and employers, and stated that frequent withdrawals by employees on each job change, which is also encouraged by employers, need to be addressed by good service and simple interface.

He was of the view that employers and employees must be able to view and access the money trail pertaining to their individual profiles.

"Improvement in services and better pension systems would mean that we can open an additional channel for pension services."

"If the EPFO services and schemes are made more employee-friendly then a reference can be made to state governments for joining the EPF pension systems," he said.

Mr Joy also informed his colleagues that EPFO proposes to launch a system of 'One Employee One EPF Account' on May 1.

He stated that once EPF services are improved, more people will voluntarily join the EPF system.

On the issue of compliance by municipalities, Mr Joy stated that legal actions for enforcing compliance in respect of all employees, whether regular or contractual be taken by all field offices.

He stated that all running contracts as well as future contracts by municipalities be examined to enroll all eligible employees and to secure compliance.

Mr Joy raised the specific issue of PF default by tea gardens/plantations and informed that a departmental order has been received from the Commerce Secretary to take action against such plantations.

He also stated that reference be made to Tea Board and to concerned state governments to find out who is the owner of the land on which tea garden is situated and make the owner liable for payment of statutory dues.

Indian Bank Shares Jump .....

Indian Bank Shares Jump .....

Report says banks don't have to make provisions for 20 firms

RBI's step described as a `breather' for banks by analyst

ICICI Bank Ltd. and Punjab National Bank led Indian bank shares higher following a media report that the central bank eased pressure on lenders to set aside cash for possible defaults.
The S&P BSE India Bankex Index, a gauge of 10 lenders, rose 2.3 percent to the highest since January. ICICI Bank climbed 6 percent and Punjab National gained 6.1 percent. State Bank of India advanced 4 percent.
The Reserve Bank of India reportedly told lenders that they don’t have to make provisions for outstanding loans to 20 companies, including Jaiprakash Associates Ltd., out of 150 it had listed in December,
The decision was prompted partly by the steps taken by the companies to cut debt, (unidentified sources.)

“The regulator has reportedly provided a breather to the banking sector on the asset-quality front and this should give some confidence to investors and the bankers, The reported move “will ease the provisioning and asset-quality pressures that have weighed heavily on the banking sector.”

Indian banks are about to start reporting earnings for the quarter ended March, with IndusInd Bank Ltd. due to post results on Thursday. Eleven banks in India reported losses in the quarter ended December amid surging bad loans after the RBI began an audit, known as the asset-quality review, on Oct. 1.

FROM GOUTAM SINHA ROY EX GM OBC

RECALLED QUESTIONS OBC PROMOTION EXAM SCALE I TO II 13.06.2015

RECALLED QUESTIONS OBC PROMOTION EXAM SCALE I TO II 13.06.2015 
1. Differed Payment Guarantee is : for payment which has been deferred or postponed.
2. Lien not applicable on: FDR
3. Target for weaker section loan are ____% of ANBC:10%
4. Basel III implementation:31.03.2019
5. As per Turnover of Rs.______ is , borrower is to be considered as Mid Corporate Borrower :Up to Rs.150.00 Crore
6. SIDBI provide venture capital fund for : Long Term 
7. Mortgage is: A legal agreement that conveys the conditional right of ownership on an asset or property by its owner (the mortgagor) to a lender (the mortgagee) as security for a loan.
8. Safe custody of Articles comes under which act: Indian Contract Act
9. Loan to MSME without Collateral : Rs.10.00 Lac
10. CGTMSE set up by: Govt of India and SIDBI
11. CGTMSE cover eligible for amount upto:Rs.100.00 Lac
12. OD in PMJDY account upto: Rs.5,000/-
13. Post Harvest Loan against Pledge or Hypothecation of crop produce provided for____ months: Loan upto Rs.50.00 Lac period not extending 12 months
14. Debt Swap meaning: To extend finance to farmers for paying of loan taken from non institution lenders.
15. For Debt Swap purpose loan provided upto: 100% of debt is on account of cultivation or agri activity or with a max. Limit of Rs. 1.00 Lac
16. Shortfall in PS advance, target amount deposited in: RIDF
17. For Standing Instruction relation between bank and customers: Agent and Principal
18. If Garnishee Order without description received , what should be do: Full amount to be attached
19. Minimum deposit to open BSBDA a/c:NIL
20. If a businessman start a business with a Capital fund of Rs.3,000,000/- and withdraw Rs.25,000/- later. If Net Profit is Rs.1,20,000/- and Tax paid is Rs.20,000/-,what is the position of capital account at last: Rs.3,95,000/-
21. If long term sources =Rs. 16.00 Lac, Long Term uses = Rs.12.00 Lac, Total Assets = Rs.30.00 Lac, Calculate NWC: Rs.4.00 Lac
22. When animal rearing is done with regular farming it is called: Mixed Farming
23. Long duration corps are:12 months
24. Provision on secured Sub Standard Loan:15%
25. Maximum amount of Suit in Lok Adalat: Rs.20.00 Lac
26. Eligible Amount of suit in DRT: Rs.10.00 Lac & above
27. NPA are sold to : ARC
28. Time Limit for registration in CERSAI: 30 days (30days plus 30days condonation with payment of penalty).
29. How many banking ombudsman in India:15
30. Benefit of registration of a firm: Power of file case in court by firm against 3rd parties.
31. What is Certificate of Incorporation in term of Company: Filed the legal documents with the registrar of companies at their jurisdiction for registration of company.
32. Number of document required for opening of account of sole proprietorship firm: Two mandatory documents of proprietary concern
33. Full form of USSD: Unstructured Supplementary Service Data
34. Daily Maximum withdrawal limit of Rupay ATM card:Rs.25,000/-
35. For purpose of Priority Sector, construction of house based in Urban area where population above 20 Lac ,loan amount is ______ and House cost is______:Rs.28.00 Lac and Rs.35.00 Lac
36. Personal Accident cover and permanent disability insurance cover in PMJDY: Rs.1.00 Lac
37. Accrual Accounting means: that expenses and revenues are recorded in the period they occur, whether or not cash is involved. The benefit of the accrual approach is that financial statements reflect all the expenses associated with the reported revenues for an accounting period.
38. Current ratio indicate: Liquidity of the firm
39. Networking capital shows: CA-CL
40. Under LRS scheme any resident individual can remit abroad upto : $2,50,000 per person per year
41. FCNR account in OBC can be opened in how many currency: 6
42. Monthly report to Police in case of how many counterfeit notes: Detected up 4 piece in a single day, will be reported to police on monthly report on Annexure II
43. Maximum amount for Locker in form FDR: 3 years rent plus breaking charges of locker.
44. Maximum deposit under PPF a/c: Rs.1.50 Lac
45. Rate of Interest in Sukanya Samridhi Account: 9.20%
46. Interest paid by RBI on cash deposit by banks with RBI: NIL
47. Net Interest Income is Equal to: Interest received on assets − Interest payments on liabilities
48. Standby LC are like to: Bank Guarantee
49. Pledge is: Bailment of Goods
50. Protection to paying bank for materially altered instrument under section: 89
51. If Interest and Principal on maturity is Rs.20,000/- and above it will be paid in: Account
52. Differential rate of interest applied on deposit of : Rs.1.00 crore and above
53. When banks purchase Govt Security form RBI, it is called: Reverse Repo
54. Incorrect about RTI: Reason to be mentioned in RTI application
55. BC agent uses which machine: Biometric Machine
56. Under PMJDY our bank has tie up with which insurance company for life insurance: HDFC ERGO
57. Bharti Airtel tie up with which bank for set up a payment bank: Kotak Mahindra Bank
58. Minimum Networth for installing White Level ATMs by a company: Rs.100.00 crore
59. Premium under PMJJBY scheme: Rs.330/-
60. Premium under PMSBY scheme: Rs.12/-
61. Increase in hour in RTGS by RBI from 8:30 to: 8:00 AM
62. Charge of transaction above free transactions while using ATM Card in other bank’s ATM:Rs.20/-
63. Credit Guarantee Corpus for MUDRA Bank: Rs.20,000/- crore
64. Education Loan limit for abroad to be considered under Priority Sector: Upto Rs.10.00 Lac irrespective of sanctioned amount
65. Customer meeting to be hold at branch on which day of month: 15th of every month
66. Standard Score under CIBIL: 300 to 900
67. Which bank started technical channel and programme to educate its customer: ICICI Bank
68. Tax Incentive on Debit card to be implemented in PMJDY account ATM CARD also, presently in which country: 
69. In how much month notice to Non-KYC compliant customer, after how much time account should be freeze: 3 months notice
70. OBC Parivar SB scheme, minimum combined balance: In Metro/Urban Rs.1.00 Lac, SU/Rural Rs.50,000/-
71. Maximum Lock in period for Tax saver FDR: 5 Years
72. RRBs and UCBs, to start TDS at source at interest of Rs.10,000/- or above from which date: 1st June 2015
73. Delay in disbursement of revised pension and arrears, compensation by bank: @8% fixed rate
74. Delay in RTGS/NEFT/NECS/ECS, compensation @: RBI LAF Repo Rate+2%
75. Cushion of ______ minutes to avoid any rejection in massage transmission on RTGS under revised timing: 15 Minutes
76. Bhartiya Mahila Bank is which type of bank: Public Sector Bank
77. Under PMJDY , time limit for reporting claim for accident insurance cover: Within 90 days of accident.
78. Two Legal Opinion in Housing Loan of amount more than: Rs.50.00 Lac
79. Newly opened account in how much time it should be reviewed: 6 Months
80. What is the age limit in PMSBY: 70 Years
81. Angular bleed line not present in which type of notes: Rs.50/-
82. Mandatory id Proof for DEMAT a/c: PAN Card
83. KYC review in every: 6 Months
84. Medium Risk customer KYC to be submitted: 8 Years
85. Low Risk customer KYC to be submitted: 10 Years
86. After death of account holder: POA signed cheque not to be passed
87. Full form of USB: Ultra Small Branch
88. PPF Lock in period: 15 Years
‌89. In Hypothecation: Both Possession and ownership with customer