general awareness with special reference to banking

Kisan Credit Card

April 28, 2015

Kisan Credit Card scheme was introduced by NDA Government in August 1998 with the aim to provide adequate and timely short-term credit needs of farmers during the cropping season. It was first proposed in the Budget 1998-99 by then Finance Minister Yashwant Sinha. Consequent to this, NABARD had prepared a...

Bancassurance

April 27, 2015

Bancassurance or Bank Insurance Model refers to the distribution of the insurance and related financial products by the Banks whose main business is NOT insurance. So, simply Bancassurance, i.e., banc + assurance, refers to banks selling the insurance products In India, ever since espousing of financial reforms following the...

What is Asset Liability Mismatch?

April 27, 2015

Asset Liability Mismatch or ALM is considered to be a comprehensive and dynamical framework for measurement, monitoring and managing the market risk of the Banks. Asset Liability Mismatch arises in the following situation: The Primary source of funds for the banks is deposits, and most deposts have a short-...

India’s Credit Rating Agencies

April 27, 2015

The Credit rating market taken a definite shape in India after the SEBI made it mandatory for any debenture that has maturity of more than 18 months maturity. There are four domestic credit ratings in India for standardized approach for credit risk calculation. They have been discussed below: CRISIL...

What are Risk Weighted Assets?

April 27, 2015

The Risk Weighted Assets (RWA) refer to the fund based assets such as Cash, Loans, Investments and other assets.  They are the total assets owned by the Banks, however, the value of each asset is assigned a risk weight (for example 100% for corporate loans and 50% for mortgage loans)...

Quiz 648: Banking Awareness for SBI PO 2015

April 25, 2015

1. Which among the following was the first bank purely managed by Indians? Oudh Commercial Bank Punjab National Bank Bank of India Allahabad Show Answer Punjab National Bank The first Bank with Limited Liability to be managed by Indian Board was Oudh Commercial Bank. It was established in 1881...

Commercial Papers

March 23, 2015

Commercial Paper (CP) is yet another money market instrument in India, which was first introduced in 1990 to enable the highly rated corporates to diversify their resources for short term fund requirements. They are issued either in the form of a promissory note or in a dematerialised form through...

Universal Banking

March 17, 2015

Universal banking is a system of banking where banks undertake a blanket of financial services like investment banking, commercial banking, development banking, insurance and other financial services including functions of merchant banking, mutual funds, factoring, housing finance, insurance etc. In simple words, Universal Banking means that Financial Institutions (FIs)...

Priority Sector Lending

March 16, 2015

Priority sector was first properly defined in 1972, after the National Credit Council emphasized that there should be a larger involvement of the commercial banks in the priority sector. The sector was then defined by Dr. K S Krishnaswamy Committee. Objective of Priority Sector Targets The overall objective of priority sector...

Current Targets in Priority Sector Lending

March 16, 2015

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...

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