One Liners of Banking Awareness Part-II o The first banknote issued by independent India wa the one rupee note issued in 1949 o KYS is an acronym for Know Your Customer a term used for customer identification process. o KYC has two components- Identity and address o Commercial Paper(CP) is an unsecured money market instrument issued in the form of a promissory note o Commercial Paper(CP) was introduced in India in 1990. o Corporates, primary dealers and the all India Financial institutions are eligible to issue CP o Commercial Paper(CP) can be issued for maturities between a minimum of 7 Days and a maximum of upto 1 year from the date of issue. o Commercial Paper(CP) can be issued in denominations of Rs 5 lakh or multiples thereof. o Every issuer must appoint an issuing and payment agent for issuance of CP. o A term deposit is a contract between the bank and the customer for a definite term and it cannot be paid prematurely at the bank’s option. Banks have the freedom to determine their own penal rates of interest for premature withdrawal of term deposits o Base rate system has replaced the erstwhile Benchmark Prime lending rate system with effect from July 2010 o RTGS stands for REAL TIME GROSS SETTLEMENT o The RTGS system is primarily meant for large value transactions. The minimum amount to be remitted through RTGS is Rs 2 Lakh. There is no upper ceiling for RTGS transactions o NEFT – NATIONAL ELECTRONIC FUNDS TRANSFER is a nation – wide payment system facilitating one to one funds transfer. o There is no limit- either minimum or maximum- on the amount of funds that could be transferred using NEFT. o IFSC or INDIANFINANCIAL SYSTEM CODE is an alpha-numeric code that uniquely identifies a bank branch participating in the NEFT system o ECS- Electronic Clearing System is an electronic mode of payment/receipt for transactions that are repetitive and periodic in nature o MICR – MAGNETIC INK CHARACTER RECONGNITION is a 9 digit code to identify the location of the bank branch; the first 3 characters represent the city, next 3 the bank and lat 3 the branch o The first bank in India to be given an ISO certification is CANARA Bank o The First Indian bank to have been started solely with Indian capital is PUNJAB NATIONAL BANK o Cheque Truncation system(CTS) is the process of stopping the flow of the physical cheque issued by a drawer at some point with the presenting bank en-route to the drawee bank branch. o The FULL FORM of CORE in Core banking Solution is Centralized Online Realtime Exchange o Inflation in India is measured on gross domestic product(GDP) o Central Government levies taxes on income(except income on agriculture which by state govt.) , customs duties, central excise and service tax. o VAT, stamp duty, state excise, land revenue and profession tax are levied by state government o Allahabad Bank is the oldest public sector bank in India o Divideneds are profits the company distributes to shareholders o Bankruptcy is a legal action in which a person who is not able to repay his loans satisfactorily is declared bankrupt by a court order o Indian Stock market has three mainstream stock exchanges- BSE, NSE and MCX-SX
Posted on: Fri, 28 Nov 2014 14:27:25 +0000
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