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Current Targets in Priority Sector Lending

As of March 2015, the domestic banks and foreign banks with 20 and more branches have to disburse 40% of the Net Bank Credit (NBC) to Total Priority sector, out of which 18% should be total agricultural advances. The Foreign banks have been given a target of 32% of the Net Bank Credit to priority […]

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Current Repo Rate

Repo Rate, or repurchase rate, is the rate at which RBI lends to banks for short periods. This is done by RBI buying government bonds from banks with an agreement to sell them back at a fixed rate. If the RBI wants to make it more expensive for banks to borrow money, it increases the […]

Know Your Customer

Know your customer (KYC) is a bank regulation that financial institutions and other regulated companies must perform to identify their clients and ascertain relevant information pertinent to doing financial business with them. What are Objectives of KYC? Money laundering is a growing menace and it not only poses serious threat to the stability and integrity […]

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List of Committees Related to Banking & Finance in India

This Post is in Continuation with our previous post List of Various Committees & Their Focus AreaHere is the list of various Committees and their main Focus Areas A C Shah Committee:NBFC A Ghosh Committee:Final Accounts A Ghosh Committee:Modalities Of Implementation Of New 20 Point Programme A Ghosh Committee:Frauds & Malpractices In Banks Abid Hussain […]

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Indian Money Market & Development of Banking in India

The money market is a mechanism that deals with the lending and borrowing of short term funds or debt securities (bankers acceptances, commercial paper, repos, negotiable certificates of deposit, and Treasury Bills with a maturity of one year or less). Money market securities are generally very safe investments which return a relatively low interest rate […]

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Q+A 4: Banking Exams Based Upon Interview Questions

This is a compendium of some interview questions for students preparing for banking examinations. What is the main function of Competition Commission of India? CCI is an independent body which become operational w.e.f. May 20, 2009 and is responsible for investigating the mergers, market shares & conditions besides regulating firms. CCI will ultimately replace the […]

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Punch Lines of major Banks in India

Hum Hai Na:ICICI Good People To Grow With: Indian Overseas Bank Good people to grow:State Bank Of India Tradition Of Trust:Allahabad Bank Trusted Family BankDena Bank Good People To Bank With:Union Bank Of India World’s Local Bank:HSBC We Understand Your World:HDFC Much More To Do With YOU In Focus:Andhra Bank A Friend You Can Bank […]

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List of Various Committees & Their Focus Area

Abhijit Sen Committee (2002) : Long Term Food Policy Abid Hussain Committee: On Small Scale Industries Ajit Kumar Committee : Army Pay Scales Athreya Committee: Restructuring Of IDBI Basel Committee: Banking Supervision Bhurelal Committee : Increase In Motor Vehicle Tax Bimal Julka Committee : Working Conditions ATCOS C B Bhave Committee : Company Information C […]

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Exchange Traded Derivatives

Unlike the OTC instruments, these are traded over an exchange. So in these contracts Exchange play an intermediately to all transactions. There is a third party in ETD and that is Exchange. The exchange provides a platform, where the buyers and sellers can come together and the orders are matched. Once this orders are matched, […]

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Interest Rate Swaps

Interest Rate Swap is basically a contractual arrangement between two parties which are called “Counterparties”. Commonly the counterparties are a Financial Institution and an issuer. These counterparties agree to exchange the payments which are actually based upon a Principal amount. This Principal amount is NOT exchanged between the counterparties but the payments are based upon […]

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