DA increases for banker from November 2022 is only 30 slab

Entitlement for family on death of a Central Government servant covered under National Pension System

Entitlement for family on death of a Central Government servant covered under National Pension System

No. – 57/03/2022-P&PW(B)/8361 (1)
Government of India
Ministry of Personnel, Public Grievances and Pensions
Department of Pension and Pensioners’ Welfare
***

3rd Floor, Lok Nayak Bhavan, Khan Market,
New Delhi, Dated the 28th October, 2022

OFFICE MEMORANDUM

Subject: Entitlement for family on death of a Central Government servant covered under National Pension System – reg.

The undersigned is directed to say that Department of Pension and Pensioners’ Welfare has notified the Central Civil Services (Implementation of National Pension System) Rules, 2021 and Central Civil Services (Payment of Gratuity under National Pension System) Rules, 2021 which are applicable from the date of its publication in the Official Gazette, to govern service related matters and for grant of gratuity respectively to Central Government civil employees covered under National Pension System.

2. Rule 20 of the Central Civil Services (Implementation of NPS) Rules, 2021 provides for the entitlement of family members on death of a Central Government covered under National Pension System. As per rule 20, on death of a Subscriber, who had exercised option or in whose case the default option under rule 10 of the CCS(Implementation of NPS) Rules, 2021 is for availing benefits under the Central Civil Services (Pension) Rules, 1972 or Central Civil Services (Extraordinary Pension) Rules , further action will be taken by the Head of Office for disbursement of benefits in accordance with the Central Civil Services (Pension) Rules. However, if the death is attributable to Government service, further action will be taken by the Head of Office for disbursement of benefits in accordance with the Central Civil Services (Extraordinary Pension) Rules subject to fulfillment of all the conditions for grant of benefits under those rules.

 

3. If on death of the Subscriber, benefits are payable to the family under the Central Civil Services (Extraordinary Pension) Rules or the Central Civil Services (Pension) Rules, the Government contribution and returns thereon in the accumulated pension corpus of the Subscriber shall be transferred to Government account. The remaining accumulated pension corpus shall be paid in lump sum to the person(s) in whose favour a nomination has been made under the Pension Fund Regulatory and Development Authority (Exits and Withdrawals under National Pension System) Regulations, 2015. If there 1s no such nomination or if the nomination made does not subsist, the amount of remaining accumulated pension corpus shall be paid to the legal heir(s).

4. In the case of death of a Subscriber who had exercised option or in whose case the default option under rule 10 of the CCS(Implementation of NPS) Rules, 2021 is for availing benefits under the National Pension System, such benefits may be granted in accordance with the Pension Fund Regulatory and Development Authority (Exits and Withdrawals under National Pension System) Regulations, 2015.

5. In the event of death of Government employees covered under NPS during service, and in whose case benefits from accumulated pension corpus under NPS have been availed, family member of such deceased Government employee would also be eligible for death gratuity in accordance with rule 22 of the Central Civil Services (Payment of Gratuity under NPS) Rules, 2021. The rates provided in the rules for death gratuity is as under:

Sl. No.	Length of qualifying service	Rate of death gratuity
(i)	Less than one year	Two times of emoluments.
(ii)	Once year or more but less than five years	Six times of emoluments
(iii)	Five years or more but less than eleven years	Twelve times of emoluments
(iv)	Eleven years or more but less than twenty years re	Twenty times of emoluments
(v)	Twenty years or more	Half of emoluments for every completed six monthly period of qualifying service subject to a maximum of thirty three times of emoluments:

The maximum amount of death gratuity payable under this rule shall in no case exceed twenty lakh rupees.

6. All Ministries/Departments are requested that the above provisions regarding entitlement in respect to Central Government employees covered under National Pension System may be brought to the notice of the Government servants covered under NPS and personnel dealing with the pensionary benefits in the Ministry/Department and attached/subordinate offices thereunder, for strict implementation.

(S. Chakrabarti)
Under Secretary to the Government of India

Suicide by a Bank Manager reveals extreme work pressure

N.RAJAGOPAL

“52 year old woman Bank Manager committed suicide by hanging”. This news has shaken the conscious of the people all over the country particularly that of the bank employees and officers. Smt Padmavati, Branch Manager, Canara Bank, Bejai Branch of Mangalore city took this extreme step to end her life by hanging on 12th October 2022, allegedly due to work pressure. This is not a case in isolation; it is due to present day work pressure, as alleged. We mourn the untimely death by suicide of Smt Padmavati and share the grief of her family members and the Canbank family.

Nowadays it is widely seen that the bank executives have started exerting more pressure down the level of the organisation thinking that the desired results of business will be achieved. This is farce. The growth depends on so many factors including how the Union Government treats the Public Sector Banks and moreover it is a team work. But the present day management, for reasons best known to them, is not treating down the level staff in a proper manner and is seen pressurizing them unwarrantedly..

In the instant case, the lady Branch Manager just completed her house warming ceremony and ended her life within two days! Too much of VCs, meetings, mad rush towards achieving disproportionate targets, poor infrastructure, depleted staff strength, fixing personal accountability for no fault of theirs, denying leave, disturbance at late hours and out outside office hours, forcing them to attend office work on Hoilidays and the like are some of the reasons behind the mental agony of the Branch Managers. Smt. Padmavathi is one such Branch Manager who has allegedly suffered due to extreme pressure from the top. Ultimately, as every organisation washes off its moral responsibility, Canara Bank management may also take the same path as all these pressure tactics were orally made. It is very high time that the bank managements should introspect and ensure work life balance of all the staff members. A thorough probe should be conducted to find out the truth behind this suicide. Yes. Every organisation has a moral responsibility to protect the precious lives of its employees.

The trade unions also have an equal role to protect their members’ rights and lives. They should ensure that harassment in every form is completely eradicated. All the Unions have to educate their members and fight back this kind of offensive on the part of the Managements of the Banks and put a full stop to the suicides of bank staff.

BASIC QUALITY OF THE WORKER IS TO FIGHT

SUICIDE IS NOT THE SOLUTION

WAGE REVISION ACHIEVED IN GENERAL INSURANCE AFTER PROLONGED STRUGGLE

On 14th October 2022, the notification revising the wages of the General Insurance employees was issued after prolonged struggle.  This upward wage revision effective from 1st August 2017 has been achieved in a difficult situation confronting a hostile government.  This was possible because of the intense struggles launched in the last three years both jointly and also individually by AIIEA.

AIIEA took the lead on 17th March 2020 by a one hour walk-out strike. The success of this strike and consistent efforts through consultations with the associations made it possible that the Trade unions, Associations and welfare associations came together under the banner of JFTU and a sustained struggle began from 6th October, 2020 which included various modes like Half-day, Full-day and relay dharnas, hunger strikes, Dharnas at Jantar mantar, Human Chain programme, innumerable demonstrative actions and series of strikes in between. Overall, there were two hour, one hour and three full day strikes demanding a fair wage revision.

AIIEA in co-ordination with other constituents of the JFTU kept the struggle moving.  For this, AIIEA had to take independent action programmes to make JFTU programmes successful.  A call for one hour strike on 19th January, 2022 was given by JFTU, but when all constituents backed out from the same due to Omicron-scare,  AIIEA took upon itself to go ahead with programme and made it a tremendous success which encouraged all constituents to come forward and make future programmes successful jointly.  Apart from this, AIIEA was part of the industrial strikes on 26th November, 2020 and 28th & 29th March 2022. These strikes gave further fillip to our struggle on wage revision.  Due to these efforts of AIIEA, the unity among JFTU constituents was strengthened and the Associations presented their views in one voice before the GIPSA management as well as the Finance Ministry.

All the associations demanded for settlement of wage revision issue maintaining parity with LIC. The pressure created by this unity compelled the Ministry of Finance to clear our wage revision on lines with the LIC even though the total wage hike achieved was lower than that of LIC.

The present wage revision is a deviation from the long standing practice of an industry wise settlement on identical lines from both LIC and PSGI companies. Nevertheless, the struggle forced the GIPSA and the Government to frame the pay structure on the lines of LIC by merging the entire DA as on 1.8.2017 and with a loading of 10 percent. We have been able to achieve all other allowances similar to those in LIC.  Another remarkable part of this wage revision is that the Government, despite its strong unwillingness, conceded to make the wage increase effective from 1st August, 2017 i.e. from the date when revision became due.  The achievement of a good wage revision assumes more significance given the attitude of the anti-worker and pro-corporate Government at the Centre.

The wage revision notification speaks of the future wage revision in the form of a variable pay based on the performance of the company and employee. AIIEA is absolutely against this idea and has conveyed its opposition to it in strongest terms . We oppose it because it seeks to break the unity of employees, dismantle trade union rights and dilute collective bargaining.  Shortly AIIEA will submit the industry wise charter of demands for the General Insurance employees w.e.f. 1st August, 2022 to GIPSA and four companies.

G Anand

A incident I want to share here that made me proud of being banker…

Today incident I want to share here that made me proud of being banker…

I was outside of branch since morning for visit, at 3:30pm closing time of cash I came inside and found one old and very poor customer is very tensed and worried about something, I asked the cashier what happened? He told me his account is inactive and he wanted to withdraw the amount (which was only Rs.5200/-) but it will take time as Physical forms has to send Back office for updation which we have taken and we will send it today evening by courier. I saw the Customer and he was like, Sir Diwali hai, Sab kaise karunga mai? And his eyes was full of water and his shed tears told me everything that is all (Rs.5200/-) amount he has without it his Diwali is going to be ruined.

So, very politely I asked the customer to sit and have some water, wait for sometime while I try if I could do something, and asked the cashier and as well as 2nd Man please don’t close the cash counter as one VIP withdrawal is going to take place.

I scan the all the paper with all stamps &Signatures and email it to the concern person to active the account on scan basis in the back office, I got no response from him till it was 5pm, I also called him but he didn’t received my call many times, I texted him as it is very urgent pleas call me back, he call me back I told the whole story to him, he said he can’t do as he is alone in his department and some people are busy in Diwali celebration and some left office early. I said to him Please you enter in the system while I make it sure to verified by my BH. After lot of efforts Around 5:30 pm the account was activated and I smiled and looked at the customer while he understood by my smile that now he will be able to withdraw the amount.

After withdrawal, he fold his both hands and asked my name and said.. Sir aapki wajh se ab Diwali manaa payenge (sir, because of you Now we can Celebrate Diwali ), I don’t know but I too got emotional at that time and said Mehnat kaam laaya.. aapka hi paisa hai.. aapne nikala hai.. And gave him a packet of Sweet (that was bought for distribution to VIP customer of Branch) and wish him Happy Diwali .

Tab mere branch ka cashier and 2nd man khta hai yhi aapka VIP customer tha jisske liye 2-3 hours Cash Open rakha, sahi hai. Tabhi BH also came from Cabin and said to me this is Real Diwali to make the poor one smile..

Everyone appreciated that the first time the Cash was delayed so long for a good cause.

I feel proud banker..

I feel good ..

I feel real happiness ..

Happy Diwali to everyone

An Action Plan in support of Demand of Updation of Pension

Dear Comrades,

Our AIBRF has launched an Action Plan in support of Demand of Updation of Pension, to submit our Online appeal to Hon PM by individual pensioners from 15/10/2022 onwards.

In this connection we have Arranged for a Special Camp

On 29/10/2022 Saturday Time : 11.00 AM to 3.00 PM

Venue : AICBRF office A K Nayak Bhavan 2nd line beach behind GPO Chennai 600001,

With a view to assist our pensioners who are yet to submit the online appeal to Hon PM, our OBs & ECMs based at Chennai are requested to inform our members in their respective areas and also be present at the venue without fail.

Com S Balasubramanian has kindly consented to assist our members in online submission of Appeal to Hon PM.

Com M V Ramani secy CBRF will co ordinate the action programme.

Our members are requested to bring their mobile phone (to receive OTP )

With greetings

Muthukrishnan s

GS, CANARA BANK RETIREES' FORUM

BANK UNION WANT OLD PENSION PLAN RESTORED

Credit-to-GDP gap and What is a Fiscal Deficit?

The credit-to-GDP gap ("credit gap") is defined as the difference between the credit-to-GDP ratio and its long-term trend. Borio and Lowe (2002, 2004) first documented its property as a very useful early warning indicator (EWI) for banking crisesHow do you calculate GDP gap?\

The percentage GDP gap is the actual GDP minus the potential GDP divided by the potential GDP.

What is India's current credit to GDP ratio?

At end-March 2022, India's external debt was placed at US$ 620.7 billion, recording an increase of US$ 47.1 billion over its level at end-March 2021 (Table 1). The external debt to GDP ratio declined to 19.9 per cent at end-March 2022 from 21.2 per cent at end-March 2021.

How much India is in debt 2022?

India's external debt was placed at US$ 617.1 billion at the end of June 2022, stated a press release on Thursday. It has recorded a decrease of US$ 2.5 billion over its level at end of March 2022. The external debt to GDP ratio declined to 19.4 per cent at the end of June 2022 from 19.9 per cent at end of March 2022

Debt-to-GDP Ratio

Debt-to-GDP ratio is the ratio between a country’s debt and its gross domestic product. It is a reliable indicator on how capable a country is in paying its debts.

Generally, a low debt-to-GDP ratio is a measure of a healthy economy that produces and sells goods and services without accumulating future debts.

GDP of India - What is GDP? What are the Methods of GDP EStimation?

GDP stands for Gross Domestic Product. The meaning of GDP is the measure of the value of the economic activity within the country. In simpler words, GDP is defined as the sum of the final prices of the goods and services produced in an economy in a given period

What is a Fiscal Deficit?

The fiscal deficit is the difference between the government’s total expenditure and its total receipts (excluding borrowing). A fiscal deficit occurs when this expenditure exceeds the revenue generated.

• Fiscal deficit is when a government’s total expenditures exceed the revenue that it generates (excluding money from borrowings). 
• The deficit does not mean debt, which is an addition of annual deficits.

What is the Formula of Fiscal Deficit?

Fiscal Deficit = Total Expenditure (Revenue Expenditure + Capital Expenditure) – (Revenue Receipts + Recoveries of Loans + Other Capital Receipts (all Revenue and Capital Receipts except loans taken))

• Gross Fiscal Deficit (GFD) of the government is the surplus of its total expenditure, current and capital, as well as loans net of recovery, above revenue receipts (including external grants) and non-debt capital receipts.
• A fiscal deficit happens because of events like a major increase in capital expenditure or due to revenue deficit. 
  • Capital expenditure is incurred to create long-term assets like buildings, factories, infrastructure development, etc.
• Fiscal deficit serves as an indicator of how well the government is managing its finances.
• A recurring high fiscal deficit implies that the government has been spending beyond its means.
• However, the fiscal deficit is seen in almost every economy while the fiscal surplus is quite rare. The high fiscal deficit is not always a negative thing if the amount is utilised for constructing roads, airports, infrastructure, etc. since these will generate revenue in the long run.
• Fiscal Consolidation refers to the policies undertaken by governments (national and sub-national levels) to reduce their deficits and accumulation of debt stock. Read all about fiscal consolidation in the linked article.

Fiscal Deficit Calculation

Fiscal deficit is arrived at by calculating the difference between the total expenditures incurred by the government in a fiscal year and the total revenue obtained by it.

Fiscal deficit = Total Expenditure – Total Revenue (excluding the borrowings)

The fiscal deficit is usually expressed as a percentage of GDP.

Components of Fiscal Deficit

The two components of the fiscal deficit are income and expenditure.

1. Income: the total income generated by the government can be divided into:
   1. Tax revenue: GST, customs duties, corporate tax, etc.
   2. Non-tax revenue: dividends and profits, interest receipts, etc.
2. Expenditure: this includes capital expenditure, revenue expenditure, grants for capital assets creation, interest payments, etc.

Learn about taxation in India in the linked article.

How is Fiscal Deficit Financed?

There are two sources to finance the fiscal deficit. They are:

1. Borrowings: internally from a commercial bank, or from external sources like the IMF, other governments, etc.
2. Deficit financing (that is, printing new currency): borrowing funds from RBI against its securities (so, RBI prints new currency).

The government meets the fiscal deficit by borrowing so, it can be said that the total borrowing requirements of a government in a year is equal to the fiscal deficit of that year.

India’s Fiscal Policy Framework

Here are some interesting facts about India’s fiscal policy agenda:

• The Indian Constitution has provided directives for the formation of a Finance Commission (FC) every five years.
• This is to provide the basis for the assignment of some of the centre’s revenues to the state governments and provide medium-term direction on fiscal matters, as the taxing capacity of the states are not necessarily proportionate with their spending responsibilities.
• The Union Budget where the government shall put before the Parliament an account of its proposed taxing and spending provisions for legislative debate and approval is also an important part of fiscal policy.
• The Fiscal Responsibility and Budget Management Act (FRBM) 2003 is an Act concerned with fiscal discipline.

Read more on the Fiscal Policy of India.

Difference between Fiscal Deficit and Revenue Deficit

Fiscal Deficit	Revenue Deficit
It is the excess of Budget Expenditure over Budget Receipt other than borrowings.	It is the excess of Revenue Expenditure over Revenue Receipts.
FD = Budget Expenditure – Budget Receipts (excluding borrowings)	RD = Revenue expenditure –Revenue receipts
It reflects the total government borrowings during a fiscal year.	It reflects the inefficiency of the government to reach its regular or recurring expenditure.

Frequently Asked Questions on Fiscal Deficit

Is Fiscal Deficit good for economy?

Usually, any sort of deficit is a challenge to overcome but a Fiscal Deficit can be good for the economy of the country if the money is being utilised for productive assets (construction) which stimulate growth and employment.

How is Fiscal Deficit financed in India?

Earlier referred to as deficit financing, the Government can finance the Fiscal Deficit by borrowing from the Reserve Bank of India in lieu of government securities. This increases the money supply and can lead to inflation.
Another method is to borrow from the market (internal and external) but it raises the burden on future generations who have to pay it back.

STOP PRIVITISATION

Just 20 years ago, the country of Bolivia caught the pace of privatization.

Everything started to be given to the private sector.

After all, the government privatized the water too. All rights of water were sold to a multinational company in 1999.

The water rates have increased so much that there was a havoc.

The average half a month salary began to be spent on water.

When people started bringing drinking water from the canals, army and police were deployed on the canals.

The unhappy public was waiting for rain, so a new order came that no one should collect rain water, this belongs to this company.

Case of theft will be registered for collecting water.

Well, when the eyes of the people opened, there was a strong protest. Many people were fried with bullets.

Because police and army are always for the government,

And the government is in the pockets of the capitalists.

Full details of Bolivia Water War in NCERT 10TH CLASS.

But we remember to take marks in exam not to learn or learn lessons. Keep in mind that privatization may lead to economic development but the appropriateness of government institutions will remain forever for the prosperity of citizens....

If you want, you can search it on the net too.

#STOP PRIVITISATION

UFBU meeting on 4th NOV at Mumbai

All India Demand Day on17th NOV 2022 for Banker

 

Pay Commission Recommendation: Deduction of commuted pension from the pension: DOPPW O.M

Pay Commission Recommendation: Deduction of commuted pension from the pension

No. 42/15/2022-P&PW(D)/4
Government of India
Ministry of Personnel, P.G. & Pensions
Department of Pension & Pensioners’ Welfare

3rd Floor, Lok Nayak Bhawan,
Khan Market, New Delhi – 110003
Date:- 25th Oct, 2022

OFFICE MEMORANDUM

Sub:- Deduction of commuted pension from the pension revised in implementation of recommendations of Pay Commission etc.

In accordance with Rule 5 of CCS (Commutation of Pension) Rules, 1981 a Government servant can commute for a lump-sum payment of an amount not exceeding 40 per cent of his pension.

2. The amount of pension so commuted is deducted from subsequent monthly pensions. References have been received in this Department as to what amount shall be deducted from pension in cases where the pension is subsequently revised on implementation of recommendations of Pay Commission, etc.

3. It is clarified that in such cases, the portion/amount of pension which was originally commuted shall only be deducted from the revised pension.

Sd/-
(Charanjit Taneja)
Under Secretary

1. All Ministries/Departments of the Government of India (as per standard distribution list).
2. C&AG of India, UPSC, etc. as per standard endorsement list

42 Bank Personal Interview Questions and Answers

 

Tell me something about yourself?

Generally this is the first question which is put up in front of the candidate appearing in the interview. To answer this, the candidate must tell his name, place of residence and his current work or educational degree along with a very brief note on his family-father, mother and siblings. He/she can also tell about his father or mother’s occupation. Some key points to note here are:-

He must know the meaning of his name and specific reference with his name if any. For ex:- a boy named “Prashant” was asked about the geographical connection of his name i.e. Prashant Mahasagar or Pacific Ocean.

The answer should be precise and questions like- if your father is a teacher then why do you want to become a banker? can come up from your answer to the first question. Be prepared with the answers to these expected questions.

Because this is the first question so the candidate must give a short and effective answer. You might be nervous at the beginning but remember to keep a smile on your face.

Where have you come from and what is famous in your city? The candidate must tell about his place of living- city and state. If the board further asks about any specifications, then name of the district etc. should be told. He/she must tell about the famous things of his place. For ex:- a candidate from Lucknow may tell about Imambara, chicken clothes, “tehzeeb” of Lucknow etc. The key things to deal this question effectively are:- - The candidate must know about the local MLA and MP from his area. If any renowned personality belongs to that area, you should be aware of the details. - He must have full knowledge about that place, its history, famous monuments, personalities, rivers, at times even number of railway stations in the city etc., also about the politics of that state-CM and ruling party and all other nitty gritties of his place. For ex: - A candidate from Ghazipur, U.P. was asked about cultivation of “Poppy seeds” as Ghazipur is famous for cultivation of poppy seeds. - At times, questions about local politics are also put forward like a candidate, from Amethi was asked about the electoral battle between Rahul Gandhi and Kumar Vishwas form Amethi. - A good answer to such questions leaves a very positive impact on the board as it demonstrates your awareness about the surroundings and the fact that you are well prepared puts you ahead of others.

Why do you want to join the banking industry? To answer this question, you can say something like –“I want to join this industry because it can provide me a stable career with good growth prospects. It is one of the fastest growing sectors of the nation and provides great career opportunities. There could be many other reasons for you wanting to join the bank industry for e.g. it is an honest organization, good working conditions, chances to directly interact with public etc. The choice of reason could be anything that suits you as a person. This is a very commonly asked question and you must be prepared to answer it.

Please tell us about your strength and weaknesses? Here, the answers vary from candidate to candidate. But the strength and weakness should be such that they match up to or are in synchronization with the personality of the candidate. For ex:- If a candidate says that his strength is is general awareness while in reality he possesses least knowledge of current affairs - cross questioning can easily unveil him and could actually land him in trouble. Some key things to answer this question effectively are:- - Try to put forward a strength which is useful in the banking sector. For ex: - good communication skills, adjustable etc. The strength should bring about a positive aspect of your personality in front of the board. - This is a question from which you can actually turn the interview in your favour. For ex:- If you say something like, “I have won many awards in debate competitions so I would think that good oratory skills are my strength.” - This way I can inform the board about my previous achievements also and can get an advantage over others. - They may ask how your quality/strength will be helpful to bank. Be prepared with an answer. - Weakness should not be very negative like short temper, irregular etc. as they leave a bad impression. - Remember, this question is the golden chance for you to turn the ball in your court. In the answer you must introduce all your unique talent in front of the board. So that the interview enters in your own comfort zone.

After doing B.Sc / B.Tech / MBA / MA why do you want to choose banking? Why not something related with you field of education? You must give honest and sensible answers to such question. For ex:- A MBA candidate may say that there are hardly good jobs in MBA as of now. Banking is a safe sector providing great employment opportunities. In the answer, you must show your keen interest in joining banking sector and it should not look like you don’t have an option so you are choosing it. You can also expect some questions from academics. A science stream student may be asked about about Newton’s Law etc. So, you must also prepare the subjects studied by you in the degree.

What are the basic documents a person requires to open an account? The RBI has advised banks to follow the Know Your Customer (KYC) guidelines where some personal information of the account holder is obtained by the bank. This information includes: - photograph, proof of identity and proof of address. In 2013, AADHAR cards and MNREGA cards are included in KYC papers. Without these documents a person can’t open his account. Key points:- - The interviewer might ask whether you have a bank account or not. - It is preferable to have an account and to know about the process because it will only help you if such questions come up.

Who is the governor of RBI? As of today (March’14), you can answer this as, Mr. Raghuram Govind Rajan is the 23rd governor of RBI. Before taking reins as RBI governor he was an officer on special duty in RBI. He has also served as economic advisor in PMEAC. His tenure is of 3 years ending in September 2016. Key points:- - In IBPS interviews, you must have a quick read about the prominent personalities of banking industry, especially governor and deputy governors of RBI. - You must address the name of personalities by using Mr. or Madame in case of male and female respectively. - Try to keep yourself updated about the recent happenings of at least the month prior to interview.

Tell us something about the 27th or latest public sector bank in India. Sir, the 27th public sector bank in India is Bhartiya Mahila Bank. It was created by Finance Bill 2012. The first BMB was opened in Mumbai on 19th November 2013 on the 94th birth anniversary of Indira Gandhi. India is the third country in the world to have a bank especially for women after Pakistan and Tanzania. - Tagline- “women empowerment economically”. - Head- Usha Anantha Subramanayam - The bank allows deposit from everyone, but lending will be focused for women. - This bank is very important because it is the latest and 27th PSB of India. So, try to know every basic point about BMB. Initial capital of Rs. 1000 crore. Similarly, if there has been some other initiative in that year, you should be well aware of it.

What do you understand by the GDP of the country? The final value of all the goods and services produced under the geographical area of a country is the Gross Domestic Product of that country. GDP is calculated at consumption, investment and exports and imports are subtracted from the sum of these three.

Who are the Bharat Ratna awardees, 2014? Sir, Mr. Sachin Tendulkar and Mr.C.N.R rao are the two recent awardees of Bharat Ratna award. Both of them are the 42nd and 43rd recipients of the award. CNR Rao received the award for his contribution in the field of chemistry whereas Mr. Tendulkar received the award for his contribution in the game of cricket. Also, he is the first sportsperson to have recived the highest honor of India.

What is a Non -banking Financial Company (NBFC)? Difference between NBFC and banks?A NBFC is a company registered under the companies act, 1956 which is involved in the business of loans, shares/stocks, etc. Non-banking financial companies are financial institutions that provide banking services, but do not hold a banking license. These institutions are not allowed to take deposits from the public. NBFCs do offer all sorts of banking services, such as loans and credit facilities, retirement planning, money markets, underwriting, and merger activities. The basic difference between bank and NBFC is:- - They can’t accept demand deposits. - They are not a part of the payment and settlement system and can’t issue cheques drawn on themselves - They are not registered in the banking act and don’t have a banking license. - They don’t have to maintain CRR, SLR or CASA like banks.

What is the difference between nationalized banks and private banks? A nationalized bank is owned by the govt. of that country and is also known as public sector bank whereas a private sector bank is owned by an independent individual or company.

What are the Non Performing assets of a company? A NPA is an obligation payable to the bank which has not been made or the interest and principal amount has not been paid on the due time. NPA is the loan or credit provided by the bank to its customers which could not be recovered in due time. Thus NPA is somehow not yielding any income to the lender either in the form of principal or interest payments. NPA is also known as “bad debts”. NPA is shown at the assets side of the balance sheet whereas deposits are shown at the liability side. If there is any recent story or news regarding NPA, then revise it thoroughly. For ex:- Recently, United bank of India was marred in loss due to its rising NPA. So was the case with Kotak Mahindra Bank.

What are the various risks that banks face? Sir, there are mainly three types of risks faced by banks:- - Credit Risk: - loan or NPA. - Market Risk: - Money invested in the market. - Operational risk: - Day-to-Day working risks.

What do you mean by term “CASA” related to bank? CASA stands for Current Account Savings Account. The CASA ratio shows how much deposit a bank has in the form of current and saving account deposits in the total deposit. A higher CASA ratio means better operating efficiency of the bank because on current account there is no interest payable whereas on savings account a tiny 3.5% interest is payable by the bank. CASA ratio shows how much of the deposit of the bank comes from the current and savings deposit.

What is the difference between cheque and demand draft? Cheque is a negotiable instrument which is paid to the bearer but a demand draft is a negotiable instrument always payable on order.

What are the parts of banks’ capital? Bank has following parts of capital:- - Tier 1 capital: - Paid up capital (core capital) + Reserves (owners or promoters’ fund) - Tier 2 capital: - Secondary Capital (borrowed funds) + general loss reserves + subordinated term debts + undisclosed reserves (can’t be maintained in India) - Tier 3 capital: - Same as tier 2 capital but with a higher amount in order to face the market risks of the bank.

Tell us something about BSBDA. BSBDA stands for Basic Savings Bank deposit account. BSBDA is the new name for “no-frill accounts” under which anyone can open a bank account with even zero balance in it or “zero balance account”. This BSBDA is aimed at providing banking facilities to weaker section of the society and improve financial inclusion. All scheduled commercial banks in India including foreign banks with branches in India have to avail BSBDA. Important:- - Such accounts are opened with “relaxed KYC norms”. - Relaxed KYC norms include an affidavit by the Pradhaan or councilor of a village or area confirming about the person concerned. - In such accounts there are certain restrictions- in a month, 4 withdrawls can be done at a maximum. This includes ATM withdrawls. The amount withdrawn in a month shouldn’t exceed Rs. 10,000 and the balance in the account at anytime shouldn’t exceed Rs. 50,000.

What is the meaning of “base rate”? Base Rate is the minimum rate of interest which a bank has to charge from its customers and a bank can’t sanction loan on a rate below the base rate. This rate came into effect from July 1 2010. Before Base rate there was Basic Prime Lending Rate or BPLR introduced in 2003. It was replaced with Base Rate because in BPLR banks had an option to loan their special customers below BPLR. Banks may choose any benchmark to decide on the base rate. The exceptions of base rate are:- - Agriculture loans - Govt. sponsored schemes - Staff loans - Only under the above cases, bank can lend below base rate. Only under the above cases, bank can lend below base rate.

We hear regularly that all bank branches are turning CBS. What is CBS? Sir, CBS stands for CORE banking solutions under which the branches of the banks are interconnected with each other through intra net with a central database server. Now, with this facility, a person having an account in a certain branch of the bank can operate from any other branch of the same bank. He need not visit the same branch to operate his account. The CORE word in CBS stands for Centralized Online Realtime Exchange.

What is Para Banking? Para Banking includes all the services provided by banks apart from day to day banking. For example: - Debit cards, Credit cards, Life Insurance products, Cash Management services etc.

What are the components of the monetary policy of RBI? The components of monetary policy include CRR, Repo rate, reverse repo rate, SLR, MSF and Bank Rate.

What is priority sector credit? All Indian banks and foreign banks (which have more than 20 branches in India) are required give 40% of their credit to priority sector out of which 18% is for agriculture. In case of Regional Rural Banks, 60% credit is to be given to priority sector. Priority sector includes- Agriculture, Micro and small enterprise, Education loan (upto 10 lakh for study in India and upto 20 lakhs for study in foreign nations) and housing loan. Priority sector lending is one of the most important part of a bank’s lending and it is devoted towards those sector which are important for public welfare.

What is the difference between Micro finance and micro credit? Micro credit is giving a small amount of loan to the customers whereas Micro Finance is a wide term. It includes small loan + training on financial matters. In other words, Micro finance= Microcredit + Financial Literacy.

What is financial inclusion? - (One of the most important questions).Financial inclusion is the availability of banking services at a affordable cost in order to include the weaker section of the society in the banking system. In 2004, Kofi Annan (UNO Head) was addressing UNESCO conference and the word “Financial Inclusion” was for the first time used by him at that time. In 2006, a committee was made under the chairmanship of Mr. HR Khan for financial inclusion and the report said that 57% of Indian population was deprived of banking facilities.

What are the steps taken by banks to promote financial inclusion? 1. Publicity of banks so that more and more people open the accounts. 2. BSBDA so that poor people can also open their account. 3. People with agriculture land are being provided with Kisan Credit Card. 4. General Purpose Credit card provided to people with no agricultural land where maximum limit of withdrawal is Rs.15,000 and rate of interest is 4%. 5. Ultra small banking and banking correspondents. CRISIL has made an index to calculate financial inclusion named as “CRISIL INCLUSIX” and in June 2013, there was 40% financial inclusion as per the index.

What is REPO rate and reverse REPO rate? Repo rate is the rate at which banks borrow from RBI during shortage of funds. This is a short term loan provided for upto 90 days by selling securities to RBI and receiving money in lieu of it. Reverse repo rate is the rate at which banks deposit their excess liquidity with the RBI. In other words, the rate at which RBI borrows from banks by selling securities in order to control excess liquidity in the market is reverse repo rate. Liquidity Adjustment Facility (LAF) introduced in 2000 has a provision that reverse repo rate will be 1% less than the Repo rate.

What is Bank rate? It is same as repo rate but here the time period is for more than 90 days.

What is Cash Reserve Ratio (CRR)? CRR is the part of Net Demand and Time Liabilities (NDTL) or cash of the bank deposited with the RBI. A higher CRR makes loans expensive as liquidity is controlled by RBI. NDTL is the deposits of the customers with the bank. Net demand liabilities are deposits payable on the demand on customer, or when the customer wants. Ex:-current account, savings account. Time liabilities are the deposits which are payable only on a specific time or after a period of maturity. For ex:- Fixed deposits, Recurring Deposits.

What is Statutory Liquidity Ratio (SLR)? SLR is the amount of NDTL which a bank needs to maintain in the form of cash, gold or govt. securities before providing credit to its customers. Through SLR, RBI makes sure that bank always have a reserve amount out of their deposits to meet any future contingencies

What is Marginal Standing facility (MSF)? In MSF, banks borrow money from RBI for upto 24 hours. MSF is always 1% above the repo rate and banks can draw only upto 25 of their NDTL from RBI.

What is Term Repo? Under term repo, RBI lends to banks through auction of funds. The minimum interest charged has to be above the repo rate and there is no limit for maximum interest rate because auction is made on the rate of interest.

What is white label ATM? It refers to ATMs owned by corporate or private operators seeking to earn a commission by banks for transactions performed by their customers. For ex:- INDICASH by TATA group.

What is brown label ATM? It refers to the ATMs where investment, installation and maintenance is by a private operator but the license and branding is by a commercial bank.

Tell us something about NABARD and its functions. NABARD was established by an act of Parliament on 12 July 1976 as National Bank for Agricultural and Rural Development. It is the apex bank to provide rural credit and monitor the RRBs. The main functions of NABARD are:- - Provide refinance to RRBs and other banks in rural areas for lending. - Acts as a subsidiary for RRBs and co-operative banks. It has two subsidiaries:- - NABFINS:- NABARD financial - NABCON: - NABARD consultancy.

What is banking ombudsman scheme? The banking ombudsman scheme is a scheme to listen to customer’s grievances and complaints regarding certain services provided by the bank. It was introduced under the Section 35 A of banking regulation act, 1949 by RBI with effect from 1995 which was later amended and became the banking ombudsman scheme, 2006. Customer can appeal against the decision of ombudsman to deputy governor of RBI. He is the highest authority of appeal. All banks in India are covered under the scheme.

What is the difference between FII and FDI? FDI or foreign direct investment is an investment that a parent company makes in a foreign country. FII or Foreign Institutional Investor is an investment made by an investor in the markets of a foreign nation. FII can enter the stock market easily and also withdraw from it easily. But FDI cannot enter and exit that easily as FDI only targets a specific sector.

What is the CAD? What is Fiscal deficit? CAD or current account deficit is the difference between the imports and exports of a nation in one financial year whereas fiscal deficit is the difference between total revenue and expenditure of a nation.

What is inflation and deflation? Inflation is the increase in the price of goods and services due to more demand and less supply. In inflation, there is more liquidity in market which has to be controlled to reduce the purchasing power of customers. Deflation is the decrease in prices of goods and services due to more supply and very less demand. In deflation, there is lack of liquidity in market which results in very weak purchasing power of people.

What is Capital Adequacy Ratio? What is DEMAT account? CAR is the proportion of capital to the banks’ risk. DEMAT accounts are those in which shares, securities and insurance policies are kept in electronic form.

Name a few poverty eradication schemes of govt. of India. Food Security bill, MNREGA, Sarva Shiksha Abhiyaan, Antoday Yojana, JNURRM, Swalamban Yojana, Nirmal Gram Yojana, Rajiv Awas Yojana, Indira Gandhi Pension plan etc. (Also read in detail about these schemes.) Apart from the questions listed above, the candidate needs to thoroughly read about the latest happenings at the time of his interview. He must read the newspaper of the very day of his interview because there have been many instances where the board asks the news of that day. He needs to prepare a full note about RBI, and types of banks, functions of RBI, and the latest monetary policy given by RBI etc. and many other banking terms and facts, insurance facilities provided by banks, important bills like food security bill, RTI etc. Candidate must remember that personal questions are the most important part of the interview as they give you the scope to stand different from others. The key points following the answers are very important. So, bear them in mind and prepare accordingly.