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Commercial Banking in India

Commercial Banks form a very crucial part of country’s economy. These are those financial institutions that accept deposits from public, lend money to public for various purposes at different rates. They earn profits in the form of interest, commission, etc. In India, these all banks are regulated by RBI.Classification of Commercial Banks:               Scheduled Banks: The banks which have been included in the Second Schedule of Reserve Bank of India Act, 193 are the Scheduled Banks. These include:Public Sector Banks: These can be further classified into Nationalized Banks and Non Nationalized banks.These are the banks which are owned and controlled by the government. In these the majority of stake is held by the government. Their main aim is to provide service to the public. These include State Bank of India and its associates, Punjab National Bank, Andhra Bank, Bank of Baroda, Bhartiya Mahila Bank, etc.Private Sector Banks: These are the banks which are owned and controlled by the private individuals. So their main aim is to earn profit like any other businessman does. These include ICICI Bank, HDFC Bank, Axis Bank, Yes Bank, etc. Foreign Banks: These are the banks which are owned and controlled by the foreign companies. They have their headquarters in other countries and open their branches in India. Examples are Federal Bank, Citi Bank, HSBC Ltd., etc.Non-Scheduled Banks: The banks which have not been included in the Second Schedule of Reserve Bank of India Act, 193 are the Non-Scheduled Banks. Example include EXIM Bank, etc.Primary Functions of Commercial Banks:Deposits from public in savings account, current account, fixed deposits, recurring deposits, deposits from NRIs.Lending money to the public for their various purposes like personal loans, housing loans, vehicular loans, etc.Providing overdraft facility to the credit card holders and under any schemes by the government like in Pradhan Mantri Jan Dhan Yojana Scheme.Secondary Functions or Para banking Activities of the Commercial Banks:Issue debit, credit and prepaid cards.Issue Letter of Credit and Bank Guarantee.Collect amounts through cheques and other instruments.Sale and purchase of shares and debentures.Act as investment bank for Initial Public Offering (IPO) by a private company.Help in anti-money laundering through KYC process.Become an intermediary between its customers and other institutions, like payment of insurance premium, payment of various bills, direct benefit transfer (DBT) scheme of government, etc.Provide facilities such as Electronic Clearing Service, transfer of funds domestically and internationally, locker facilities, foreign exchange, etc.With the advances in technology, the commercial banks are also making advancement and providing the citizens of India with the best facilities and they are also easing the lives of people by providing many good facilities.#MONISHA

NRI and PIOs

Who is an NRI?  A ‘Non-resident Indian’ (NRI) is a person resident outside India who is a citizen of India. Who is a PIO? A ‘Person of Indian Origin (PIO)’ is a person resident outside India who is a citizen of any country other than Bangladesh or Pakistan or such other country as may be specified by the Central Government, satisfying the following conditions: Who was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955); orWho belonged to a territory that became part of India after the 15th day of August, 1947; orWho is a child or a grandchild or a great grandchild of a citizen of India or of a person referred to in clause (a) or (b); orWho is a spouse of foreign origin of a citizen of India or spouse of foreign origin of a person referred to in clause (a) or (b) or (c) A PIO will include an ‘Overseas Citizen of India’ cardholder within the meaning of Section 7(A) of the Citizenship Act, 1955. Such an OCI Card holder should also be a person resident outside India. Following 3 major accounts that can be opened in India by a non-resident:  1. Non-Resident Ordinary Rupee Account (NRO Account) Ø NRO accounts may be opened / maintained in the form of current, savings, recurring or fixed deposit accounts. Interest rates offered by banks on NRO deposits cannot be higher than those offered by them on comparable domestic rupee deposits. Ø Account should be denominated in Indian Rupees. Ø NRI/PIO may remit from the balances held in NRO account an amount not exceeding USD one million per financial year, subject to payment of applicable taxes. Ø The limit of USD 1 million per financial year includes sale proceeds of immovable properties held by NRIs/PIOs. 2. Non-Resident (External) Rupee Account (NRE Account) Ø NRE account may be in the form of savings, current, recurring or fixed deposit accounts. Ø Account will be maintained in Indian Rupees. Ø Accrued interest income and balances held in NRE accounts are exempt from Income tax. Ø Authorised dealers/authorised banks may at their discretion allow for a period of not more than two weeks, overdrawings in NRE savings bank accounts, up to a limit of Rs.50,000. Ø Loans up to Rs.100 lakh can be extended against security of funds held in NRE Account either to the depositors or third parties. 3.   Foreign Currency Non Resident (Bank) Account – FCNR (B) Account Ø FCNR (B) accounts are only in the form of term deposits of 1 to 5 years Ø Account can be in any freely convertible currency. Ø Loans up to Rs.100 lakh can be extended against security of funds held in FCNR (B) deposit either to the depositors or third parties. Ø The interest rates are stipulated by the Department of Banking Operations and Development, Reserve Bank of India. Special Non-Resident Rupee Account (SNRR account)  Any person resident outside India, having a business interest in India, can open a Special Non-Resident Rupee Account (SNRR account) with an authorised dealer for the purpose of putting through bona fide transactions in rupees  The features of the SNRR account are: The SNRR account will carry the nomenclature of the specific business for which it is opened and not earn any interest.The tenure of the SNRR account should be concurrent to the tenure of the contract/ period of operation/ the business of the account holder and in no case should exceed seven years. No operations are permissible in the account after seven years from the date of opening of the account.The operations in the SNRR account should not result in the account holder making available foreign exchange to any person resident in India against reimbursement in rupees or in any other manner.The balances in the SNRR account can be repatriated outside India.Transfers from any NRO account to the SNRR account are not permitted.All transactions in the SNRR account will be subject to payment of applicable taxes in India. #ARCHANA

Important public sector banks their headquarters and taglines

 Name Of  Bank  Headquarters Taglines 1. Bank of Baroda  Vadodara INDIA’S INTERNATIONAL BANK 2. Allahabad Bank  Kolkata A TRADITION OF TRUST 3. UCO Bank  Kolkata HONOURS YOUR TRUST 4. United Bank of India  Kolkata THE BANK THAT BEGINS WITH “U” 5. Indian Bank  Chennai YOUR TECH-FRIENDLY BANK 6. Indian Overseas Bank  Chennai GOOD PEOPLE TO GROW WITH 7. Punjab National Bank  New Delhi THE NAME YOU CAN BANK UPON 8. Oriental Bank of Commerce  New Delhi WHERE EVERY INDIVIDUAL IS COMMITTED 9. Punjab and Sind Bank  New Delhi WHERE SERVICE IS A WAY OF LIFE 10. Bharatiya Mahila Bank  New Delhi Empowering Women, Empowering India. 11. Andhra Bank  Hyderabad FOR ALL YOUR NEEDS 12. Canara Bank  Bangalore MUCH MORE TO DO WITH YOU IN FOCUS 13. Syndicate Bank  Manipal, Karnataka YOUR FAITHFUL AND FRIENDLY FINANCIAL PARTNER 14. Vijaya Bank  Bangalore A FRIEND YOU CAN BANK UPON 15. Corporation Bank  Mangalore PROSPERITY FOR ALL 16. SIDBI Lucknow  BANKING FOR ALL 17. Union Bank of India  Mumbai GOOD PEOPLE TO BANK WITH 18. Bank of India   Mumbai RELATIONSHIP BEYOND BANKING 19. Central Bank of India  Mumbai CENTRAL TO YOU SINCE 1911 20. Dena Bank   Mumbai TRUSTED FAMILY BANK 21. State Bank of India  Mumbai PURE BANKING NOTHING ELSE,WITH YOU-ALL THE WAY 22. IDBI Bank  Mumbai  BANKING FOR ALL 23.Bank Of Maharashtra  pune ONE FAMILY ONE BANK                                  #RAJKUMAR

Word List On RC

rogue (noun) – unprincipled, dishonest, devil/villian.negotiating table (noun) – a place/situation in which people having formal discussions in order to reach an agreement.a clutch of (noun) – group, set, collection.suspicion (noun) – doubt/qualm, speculation, scepticism.nerve agent (noun) – Nerve agents are a class of chemicals called organophosphates – meaning they contain phosphorous – that are extremely poisonous. They attack the nervous system of the human body, which passes messages from the brain to other parts of the body, telling it what to do.defector (noun) – dissenter, rebel, traitor; a person who leaves his/her country to join/support an opposing country.expulsion (noun) – banishment, exile, deportation, eviction. concerted (adjective) – coordinated/jointly planned, active, strong/intense.purge (noun) – removal, eradication, elimination.sanctions (noun) – action taken, or an order given to force a country to obey international laws by limiting or stopping trade with that country, by not allowing economic aid for that country, etc (Courtesy: VOA Learning English).covert (adjective) – secret, furtive, hidden/concealed.propaganda (noun) – information, promotion, advertising/publicity.militant (noun) – extremist, radical, fanatic.scarcely (adverb) – hardly, barely; rarely.apparently (adverb) – seemingly, evidently, supposedly.deem (verb) – regard as, consider; think/suppose.hawk (noun) – an aggressive or warlike (external affairs) policy.collude (verb) – collaborate, cooperate secretly; conspire.naive (adjective) – denoting (someone’s) lack of experience/knowledge; inexperienced.undermine (verb) – weaken, compromise, diminish/reduce.manoeuvres (noun) – stratagem, tactic, cunning scheme.exacerbate (verb) – aggravate, make worse, worsen/compound.contrarily (adverb) – in a conflicting manner.imperative (adjective) – vitally important, crucial, critical.corollary (noun) – consequence, result, outcome.eschew (verb) – give up, forge/reject, relinquish/renounce.subversion (noun) – the act of undermining, worsening, reducing (power & authority gradually).#FancyJ

RC

The West must find some means to bring Russia to the negotiating table Russia made headlines for all the wrong reasons this week, when a clutch of countries led by the U.S. expelled more than 100 of its diplomats and intelligence officers over suspicion that the Kremlin was behind a nerve agent attack on a Russian spy and defector to the U.K., Sergei Skripal, and his daughter Yulia, in Salisbury on March 4. Besides the U.S., 14 member-states of the European Union, including Germany, France, Poland, the Czech Republic, Lithuania, Italy, Denmark, the Netherlands and Latvia, undertook coordinated expulsions, with Australia also joining them. In a sense this move, seen as the most dramatic, concerted such purge since the Cold War years, has been coming for some time. Last week the U.K. led the way when it expelled 23 Russian diplomats, but the week before that the U.S. had slapped Russia with sanctions against multiple individuals and entities for interfering in the 2016 U.S. presidential election through covert online propaganda, including fake news. Beyond these specific charges lie other alleged violations: in Afghanistan, President Donald Trump’s senior-most ground commander has accused Russia of arming Taliban militants; on the North Korean crisis Mr. Trump mentioned in January that Russia was helping Pyongyang avoid UN sanctions; and the EU last year voted to extend into 2018 sanctions that prohibit its businesses from investing in Crimea. Has Russia truly gone rogue, and is this its grand strategy to reclaim its superpower status? The answer is yes and no. To an extent the U.S. response, significant though it may appear on the surface, signals to Russia an inconsistent application of any principles of bilateral and multilateral engagement. Scarcely a week ago, Mr. Trump congratulated Russian President Vladimir Putin on his re-election, apparently against the advice of senior White House officials, and this drew sharp criticism even from fellow Republicans. He apparently did not deem the nerve agent attack a subject deserving of mention on that phone call. Yet, shortly thereafter he replaced National Security Adviser H.R. McMaster with John Bolton, a long-standing Russia hawk. What would concern democracy-minded Americans is that the expulsion of Russian diplomats might serve as an easy distraction device in the ongoing investigation into whether Mr. Trump or his associates colluded with Russian entities to influence the 2016 presidential election. Whatever the true intentions of the current U.S. administration are, it would be naive to assume that Moscow will miss any opportunity to tighten its strategic grip on global geopolitics, whether in terms of influencing foreign elections, undermining Western coalition forces in Syria, Iraq and Afghanistan, or shadow manoeuvres that exacerbate instability in the context of North Korea and Iran. Contrarily, it is imperative that the West, perhaps led by the U.S. or the EU, find some means to bring Mr. Putin to the negotiating table, the corollary of which is that he must eschew his current preference for political subversion.#FancyJ

PSL

Priority Sectors are those sectors in the economy which may not get timely and adequate credit in the absence of this specialdispensation. One of the reasons of this is that many people in weaker sections wanting of loans do not have assets to keep as securityagainst credits. But each person has the right to get all the benefits in the economy.Our government and Central Bank Reserve Bank of India (RBI) also keep an effort to help the weaker sections. Several priority sectorsare recognized by RBI, and certain targets are given to banks according to which banks must provide loans in priority to these sectors.As notified by RBI, categories under priority sector are1. Agriculture2. Micro and Small Enterprises3. Education4. Housing5. Export Credit6. OthersAlthough initially there was no specific target fixed in respect of priority sector lending, in November 1974 the banks were advised toraise the share of these sectors. After this, it was agreed that banks should aim at raising the proportion of their advances to prioritysector to 40 percent.The targets and sub-targets under priority sector lending are linked to Adjusted Net Bank Credit (ANBC).The targets and sub-targets set under priority sector lending for domestic and foreign banks operating in India are furnished below:CategoriesDomestic commercial banks / Foreign banks with 20 and above branches (As percent of ANBC or Credit Equivalent of Off-Balance Sheet Exposure, whichever is higher)Foreign banks with less than 20 branches (As percent of ANBC or Credit Equivalent of Off-Balance Sheet Exposure, whichever is higher) Total Priority Sector4032Total agriculture 18No specific targetAdvances to Weaker Sections10No specific targetDescription of the Categories under priority sector:AgricultureLoans to individual farmers [including Self Help Groups (SHGs) or Joint Liability Groups (JLGs), i.e. groups of individual farmers,provided banks maintain disaggregated data on such loans] engaged in Agriculture and Allied Activities, viz., dairy, fishery, animalhusbandry, poultry, bee-keeping and sericulture.Loans to corporates, partnership firms and institutions engaged in Agriculture and Allied Activities (dairy, fishery, animalhusbandry, poultry, bee-keeping and sericulture).Micro and small enterprisesThe limits for investments as notified by Ministry of Micro Small and Medium Enterprise are:Manufacturing sectorEnterprisesInvestment in plant and machineryMicro Enterprises Do not exceed twenty five lakh rupees Small Enterprises More than twenty five lakh rupees but does not exceed five crore rupeesservice sectorEnterprisesInvestment in equipmentMicro EnterprisesDoes not exceed ten lakh rupees Small Enterprises More than ten lakh rupees but does not exceed two crore rupees The sector includes loans for Food and Agro Processing, Khadi and Village Industries Sector (KVI).EducationLoans to individuals for educational purposes including vocational courses uptoRs 10 lakh for studies in Indiaand Rs 20 lakh forstudies abroad.HousingLoans to individuals up to Rs 25 lakh in metropolitan centres with population above ten lakh and Rs 15 lakh in other centres forpurchase/construction of a dwelling unit per family excluding loans sanctioned to bank’s own employees.Loans for repairs to the damaged dwelling units of families up toRs 2 lakh in rural and semi- urban areas and up to Rs 5 lakh inurban and metropolitan areas.Export CreditExport Credit extended by foreign banks with less than 20 branches will be reckoned for priority sector target achievement.OtherLoans, not exceeding Rs 50,000 per borrower provided directly by banksto individuals, provided the borrower’s household annualincome in rural areas does not exceed Rs 60,000 and for non-rural areas it should not exceed Rs 1,20,000.Loans to distressed persons.Overdrafts, up to Rs 50,000 (per account), granted against ‘no-frills’ / basic banking / savings accounts provided the borrowershousehold annual income in rural areas does not exceed `Rs 60,000 and for non-rural areas it should not exceed Rs 1,20,000.Under Weaker Sections under priority sector:Small and marginal farmers.Loans to distressed persons other than farmers and to individual beneficiaries not exceeding Rs 50,000 per borrower.Loans to Self Help Groups.Beneficiaries of Swarnjayanti Gram Swarozgar Yojana (SGSY), now National Rural Livelihood Mission (NRLM).Scheduled Castes and Scheduled Tribes.Beneficiaries of Differential Rate of Interest (DRI) scheme.Beneficiaries under Swarna Jayanti Shahari Rozgar Yojana (SJSRY).#FancyJ

Different Codes

IFSC (Indian Financial System Code)-11 Digits  IFSC code is developed to initiate electronic money transfer between banks within India. 1234567891011Bank Code0Branch Code MICR (Magnetic Ink Character Recognition)-9 Digits MICR is a Magnetic Ink Recognition technology for making cheque processing faster and simpler. First three digits: City Code (city in which the bank branch is located)Next three digits: Bank CodeLast three digits: Bank Branch code SWIFT Code(Society for Worldwide Interbank Financial Telecommunication (SWIFT) A SWIFT code is an international bank code that identifies particular banks worldwide. It’s also known as a Bank Identifier Code (BIC).  SWIFT codes used to send money to overseas banks. 8 Digit Code – Bank or Financial Institution11 Digit Code – Bank’s Branch First 4 characters - bank code (only letters)Next 2 characters - ISO 3166-1 alpha-2 country code (only letters)Next 2 characters - location code (letters and digits) (passive participant will have "1" in the second character)Last 3 characters - branch code, optional ('XXX' for primary office) (letters and digits) PAN Number  (Permanent Account Number)  Income Tax PAN card is issued under Section 139A of the Income Tax Act.  The PAN structure is as follows: AAAPL1234C:  First five characters are letters, next four numerals, last character letter.  The first three letters are sequence of alphabets from AAA to ZZZ The fourth character informs about the type of holder of the card. Each holder is uniquely defined as below: A — Association of Persons (AOP) B — Body of Individuals (BOI) C — Company F — Firm G — Government H — Hindu Undivided Family L — Local Authority J — Artificial Juridical Person P — Individual T — Trust(AOP) K — Krish (Trust Krish) The fifth character of the PAN is the first character (a) of the surname or last name of the person, in the case of a "Personal" PAN card, where the fourth character is "P" or (b) of the name of the Entity, Trust, society, or organisation in the case of Company/ HUF/ Firm/ AOP/ BOI/ Local Authority/ Artificial Judicial Person/ Govt, where the fourth character is "C","H","F","A","T","B","L","J","G".  The last character is an alphabetic check digit. This is unique number for every card holder. Having more than one PAN is against the law and may attract a penalty up to Rs.10, 000. Aadhaar card Aadhaar number is a 12 digit random number, issued to the residents of India. It is provided by Unique Identification Authority of India (UIDAI) after obtaining demographic information and biometric information of the citizen. The first UID number was issued on 29 September 2010 to a resident of Nandurbar, Maharashtra. Unique Identification Authority of India (UIDAI) The Unique Identification Authority of India (UIDAI) is a statutory authority established under the provisions of the Aadhaaron 12 July 2016 by the Government, under the Ministry of Electronics and Information Technology (MeitY) . The head office of the Authority is in New Delhi.Dr. Ajay Bhushan Pandey is the Chief Executive Officer of UIDAI. Legal Entity Identifier A Legal Entity Identifier (or LEI) is a 20-character identifier that identifies distinct legal entities that engage in financial transactions. It is defined by ISO 17442.The Legal Entity Identifier (LEI) code is conceived as a key measure to improve the quality and accuracy of financial data systems for better risk management post the Global Financial Crisis LEI system for all borrowers of banks having total fund based and non-fund based exposure of Rs. 5 crore and above . Accordingly, it has been decided that the banks shall advise their existing large corporate borrowers having total exposures of Rs.50 crore and above to obtain LEI as per the schedule given in the Annex. Borrowers who do not obtain LEI as per the schedule are not to be granted renewal / enhancement of credit facilities.These directions are issued under Section 21 and Section 35(A) of the Banking Regulation Act, 1949. An LEI consists of a 20-character alphanumeric string, with the first 4 characters identifying the Local Operating Unit (LOU) that issued the LEI. Characters 5 and 6 are reserved as '00'. Characters 7-18 are the unique alphanumeric string assigned to the organisation by the LOU. The final 2 characters are checksum digits. #ARCHANA

Banking terms

1. What is a Repo Rate? A: Repo rate is the rate at which our banks borrow rupees from RBI. Whenever the banks have any shortage of funds they can borrow it from RBI. A reduction in the repo rate will help banks to get money at a cheaper rate. When the repo rate increases, borrowing from RBI becomes more expensive. 2. What is Reverse Repo Rate? A: This is exact opposite of Repo rate. Reverse Repo rate is the rate at which Reserve Bank of India (RBI) borrows money from banks. RBI uses this tool when it feels there is too much money floating in the banking system. Banks are always happy to lend money to RBI since their money is in safe hands with a good interest. An increase in Reverse repo rate can cause the banks to transfer more funds to RBI due to this attractive interest rates. 3. What is CRR Rate? A: Cash reserve Ratio (CRR) is the amount of funds that the banks have to keep with RBI. If RBI decides to increase the percent of this, the available amount with the banks comes down. RBI is using this method (increase of CRR rate), to drain out the excessive money from the banks.3 4. What is SLR Rate? A: SLR (Statutory Liquidity Ratio) is the amount a commercial bank needs to maintain in the form of cash, or gold or govt. approved securities (Bonds) before providing credit to its customers. SLR rate is determined and maintained by the RBI (Reserve Bank of India) in order to control the expansion of bank credit. SLR is determined as the percentage of total demand and percentage of time liabilities. Time Liabilities are the liabilities a commercial bank liable to pay to the customers on their anytime demand. SLR is used to control inflation and propel growth. Through SLR rate tuning the money supply in the system can be controlled efficiently. 5. What is Bank Rate? A: Bank rate, also referred to as the discount rate, is the rate of interest which a central bank charges on the loans and advances that it extends to commercial banks and other financial intermediaries. Changes in the bank rate are often used by central banks to control the money supply. 6. What is Inflation? A: Inflation is as an increase in the price of bunch of Goods and services that projects the Indian economy. An increase in inflation figures occurs when there is an increase in the average level of prices in Goods and services. Inflation happens when there are fewer Goods and more buyers; this will result in increase in the price of Goods, since there is more demand and less supply of the goods. 7. What is Deflation? A: Deflation is the continuous decrease in prices of goods and services. Deflation occurs when the inflation rate becomes negative (below zero) and stays there for a longer period. 8. What is PLR? A: The Prime Interest Rate is the interest rate charged by banks to their most creditworthy customers (usually the most prominent and stable business customers). The rate is almost always the same amongst major banks. Adjustments to the prime rate are made by banks at the same time; although, the prime rate does not adjust on any regular basis. The Prime Rate is usually adjusted at the same time and in correlation to the adjustments of the Fed Funds Rate. The rates reported below are based upon the prime rates on the first day of each respective month. Some banks use the name "Reference Rate" or "Base Lending Rate" to refer to their Prime Lending Rate. 9. What is Deposit Rate? A: Interest Rates paid by a depository institution on the cash on deposit. 10. What is FII? A: FII (Foreign Institutional Investor) used to denote an investor, mostly in the form of an institution. An institution established outside India, which proposes to invest in Indian market, in other words buying Indian stocks. FII's generally buy in large volumes which has an impact on the stock markets. Institutional Investors includes pension funds, mutual funds, Insurance Companies, Banks, etc. 11. What is FDI? A: FDI (Foreign Direct Investment) occurs with the purchase of the “physical assets or a significant amount of ownership (stock) of a company in another country in order to gain a measure of management control” (Or) A foreign company having a stake in a Indian Company. 12. What is IPO? A: IPO is Initial Public Offering. This is the first offering of shares to the general public from a company wishes to list on the stock exchanges. 13. What is Disinvestment? A: The Selling of the government stake in public sector undertakings. 14. What is Fiscal Deficit? A: It is the difference between the government’s total receipts (excluding borrowings) and total expenditure. Fiscal deficit in 2009-10 is proposed at 6.8% of GDP. 15. What is Revenue deficit? A: It defines that, where the net amount received (by taxes & other forms) fails to meet the predicted net amount to be received by the government. Revenue deficit in 2009-10 is proposed at 4.8% of GDP. 16. What is GDP? A: The Gross Domestic Product or GDP is a measure of all of the services and goods produced in a country over a specific period; classically a year. GDP during 2008-09 is 6.7%. 17. What is GNP? A: Gross National Product is measured as GDP plus income of residents from investments made abroad minus income earned by foreigners in domestic market. 18. What is National Income? A: National Income is the money value of all goods and services produced in a country during the year. 19. What is Per Capita Income? A: The national income of a country, or region, divided by its population. Per capita income is often used to measure a country's standard of living.Per capita income during 2008-09 estimated by CSO: Rs.25, 494. 20. What is Vote on Account? A: A vote-on account is basically a statement ,where the government presents an estimate of a sum required to meet the expenditure that it incurs during the first three to four months of an election financial year until a new government is in place, to keep the machinery running. 21. Difference between Vote on Account and Interim Budget? A: Vote-on-account deals only with the expenditure side of the government's budget, an interim Budget is a complete set of accounts, including both expenditure and receipts. 22. What is SDR? A: The SDR (Special Drawing Rights) is an artificial currency created by the IMF in 1969. SDRs are allocated to member countries and can be fully converted into international currencies so they serve as a supplement to the official foreign reserves of member countries. Its value is based on a basket of key international currencies (U.S. dollar, euro, yen and pound sterling). 23. What is SEZ? A: SEZ means Special Economic Zone is the one of the part of government’s policies in India. A special Economic zone is a geographical region that economic laws which are more liberal than the usual economic laws in the country. The basic motto behind this is to increase foreign investment, development of infrastructure, job opportunities and increase the income level of the people.#RAJKUMAR

DORMANT ACCOUNT VS FROZEN ACCOUNT

The terms used for the account in which activities are stopped are dormant and frozen account. But there is difference in these terms.Both Savings and Current Account can be made dormant and frozen.The account which has not been used for 24 months (2 years) by its operatoris termed as dormant account while the account in whichall the activities have been stopped by the bank is a frozen account.dormantWe will see separately that how and why an account becomes dormant and frozen.Dormant account:There are many cases when the individuals do not use their accounts for long, neither debit, credit nor perform any other transaction(cheques issue, ATM transaction, etc.). If any account shows this type of behavior i.e. no activity performed for a period of continuous 1year, then it is named by the bank as inactive account.After this i.e. after 1 year, the bank contacts to the holder of account and nominee (if any) to either have close this account or make itactive by doing any transaction (credit or debit of ATM transaction or through internet banking, etc.).But if after this also, the holder of account does not reply, the account is named as dormant account by the bank after 1 further year.This means that the account becomes dormant after 2 years from the date of last transaction.In case when the account is inactive or inoperative, the holder of account can perform transactions to make it active, can issue chequesdrawn on that account. But when the account becomes dormant, the account holder will have to go by some guidelines of bank to makethe account active and do any transactions from or to this account.According to RBI guidelines, banks cannot charge any money to make dormant or inoperative accounts as operative.But for maintaining the dormant account, banks can levy charges as per their policy.The interest on amount of money in saving accounts will be credited in account in case of inoperative account also.Also there no charges are to be levied in case of non-maintenance of minimum amount in the account.Why the accounts become inoperative?Some of the reasons are:When people get open new bank accounts and start performing transaction in new account only.When people change their cities, they get open their accounts in new banks there.When people leave jobs and join new company, they do not perform any transactions in their old salaried accounts.What is the need to label an account as inoperative or dormant?For maintaining bank accounts, charges are levied. So if there are many inoperative or dormant accounts, maintaining of such accountswill be an extra burden on bank. So RBI asked banks to track dormant accounts so that the balance can either be revived, or thebalance can be transferred to a new account or the legal heirs.What activities can be performed to keep an account active?Any debit, any credit by cash, issue of cheque, amount credited by cheque, any ATM transaction, Internet banking performed (incase allowed by bank because net banking can’t be performed in case of dormant account), bill payments, any interest charges offixed deposits credited (if permitted by account holder), or any other transaction that involves account holder or third party.However interest charges of savings accountwill not be treated as a transaction by customer because that involves thetransaction of bank.Freezing of account:Freezing of account means the transactions in such account cannot be performed until further notice.The payments will be stopped in such accounts and even cheques drawn before freezing are also not allowed to be encashed byanyone.Banks by themselves cannot freeze an account. However, they can take an active part in discovering the accounts that show anysuspicious transactions.Then who have rights to freeze an account?RBI, SEBI, Income-tax authorities, and court.Why an account is frozen?In case of tax dues,unpaid loans or money to any individual/organization,any illegal activity found like money laundering,any suspicious activity, like terrorist financing, etc.The accounts named as dormant cannot be frozen#FancyJ

RC and words list

Australia needs to do a lot more to punish the ‘ball-tampering’ guiltyCricket is a sport, but it is also a code of honour. The phrase ‘it’s not cricket’ refers to any act that is not fair. That it has been called ‘a gentleman’s game’ suggests that it is held to high standards. Yet, like a few other things wrong with the game, ball-tampering remains one of its murkiest secrets. The seemingly innocuous application of saliva and sweat, and more interventionist acts such as pressing chewed lozenges, throwing the ball hard on the surface, the use of nails or abrasive dust from the turf, and in some cases the use of bottle openers have plunged a knife into the game’s heart even as they enhanced many a fast bowler’s ability to extract reverse-swing. This past weekend, Steve Smith’s Australian team went one step further on that road to infamy, prompting its opening batsman Cameron Bancroft to scuff the ball with a yellow tape laden with dirt-granules from the pitch during the course of the third Test against hosts South Africa at Cape Town’s Newlands Ground. The act, caught on camera, and the subsequent admission of guilt by the fielder and Smith have tarred them and their fellow accomplices in the leadership group, including vice-captain David Warner and coach Darren Lehmann. The entire episode has also raised questions about the manner in which a powerhouse such as Australia goes about playing its cricket. The fracas highlights the perils of wanting to win at any cost, an unfortunate ‘call-to-duty’ that now finds favour in most cricketing units. In fact, ball-tampering has been attempted by most international teams. Responses from ‘guilty’ players have ranged from injured-innocence to grudging acceptance of complicity. In this case, Cricket Australia moved fast, forcing Smith and Warner to step down from leadership roles. Australian Prime Minister Malcolm Turnbull publicly questioned the team’s approach to the game. And Rajasthan Royals replaced Smith with Ajinkya Rahane as its captain for the forthcoming Indian Premier League season. The International Cricket Council, for its part, imposed a one-Test ban on Smith, and fined him 100% of his match fee. Bancroft got a 75% fine. But is this enough? Clearly no. Not surprisingly, the overwhelming feeling among the game’s greats and the larger cricketing community is that these measures are no more than a gentle slap on the wrist. Bancroft’s act wasn’t a spur of the moment initiative; it was a pre-meditated action thought up during lunch break on Saturday. Smith, Bancroft, Warner, Lehmann and whoever else orchestrated this despicable move deserve firmer punishment. Sadly, a series which South Africa currently leads 2-1 will now be remembered for trash-talk and a nefarious attempt to alter the shape of the ball. Whatever this is, it’s not cricket.WORDS LISTscuff (verb) – rub, scrape, brush the surface (of an object, ball) against something.buff (verb) – polish (something).ball-tampering (noun) – (in Cricket) an action in which a fielder illegally alters the condition of the ball.hold to (verb) – stick to. adhere to, cling on to.murkiest (adjective) – questionable, suspicious, mysterious.innocuous (noun) – harmless, inoffensive, non-injurious.lozenge (noun) – sweetened tablet used for sore throats (it is basically meant to be held in the mouth and dissolved).abrasive (adjective) – rubbing, polishing, coarse-grained.plunge into (verb) – push, force, thrust (quickly).infamy (noun) – bad name, bad reputation, condemnation.laden (with) (adjective) – loaded, filled.dirt-granule (noun) – a very small dust particle.tar (verb) – cover, surface, finish.accomplice (noun) – partner in crime, fellow collaborator, co-conspirator.powerhouse (noun) – a person/country with a lot of energy, power & influence.fracas (noun) – disturbance, quarrel, scuffle.perils (noun) – dangers, difficulties; riskiness.grudging (adjective) – reluctant, unwilling, disinclined.complicity (noun) – collusion, involvement/conspiracy, collaboration.overwhelming (adjective) – very large, immense, inordinate/huge.slap on the wrist (phrase) – a mild punishment (or reprimand, rebuke).spur of the moment (phrase) – spontaneously, impulsively, on the spot/without planning/thinking.premeditated (adjective) – preplanned, intentional, deliberateorchestrate (verb) – organize, arrange, plan.despicable (adjective) – shameful, cheap, awful/heinous,trash-talk (noun) – insults, swear words, curses.nefarious (adjective) – wicked, evil, criminal/heinous.#FancyJ

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