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BSBDA

A Basic Savings Bank Deposit Account (BSBDA) can be opened with simplified KYC document and also with nil balance.  It is like a Savings account with some modifications in it. A person having BSBDA in a bank cannot have a Savings Account in the same bank. But he can have other accounts such as fixed deposit and recurring deposit accounts. A person having savings account can open a BSBDA in the same bank. But he will have to close the savings account within 30 days from the date of opening of BSBDA. With the introduction of BSBDA, ‘no-frills’ account with ‘nil’ or very low minimum balances have been converted to BSBDA. Highlights of BSBDA: All types of customers can open a Basic Savings Bank Deposit Account having age above 10 years.There is no requirement for any initial deposit for opening a BSBDA.The services available free in the ‘Basic Savings Bank Deposit Account’ include deposit and withdrawal, transfer funds, cheque facility, passbooks, ATM cards and number of withdrawals to 4 using any mode in a month.The respective banks can also offer other services as free apart from mentioned above.Accounts enjoying additional facilities under the reasonable pricing structure for value added services, exclusively for BSBDA customers should not be treated as BSBDAs.BSBDAs can be opened in any commercial banks and also in foreign banks.Opening these accounts is a part of Financial Inclusion. If a customer want to get open an account without KYC norms, then also a bank account can be opened for him but that will be treated as BSBDA-Small Account with conditions as: Total credits in such accounts  should not exceed one lakh rupees in a year.Maximum balance in the account should not exceed fifty thousand rupees at any time.In a month, the total of cash withdrawals and transfers cannot exceed Rs 10,000.Foreign remittances cannot be credited to Small Accounts without completing normal KYC formalities.Small accounts are valid for a period of 12 months initially which may be extended by another 12 months if the person provides proof of having applied for an Officially Valid Document.Small Accounts can only be opened at Core Banking System (CBS) linked branches of banks or at such branches where it is possible to manually monitor the fulfillments of the conditions. #MONISHA

RC

revelation (noun) – disclosure, surprising fact, declaration/announcement, report.grave (noun) – burying place, burial pit, burial chamber.hold in (phrasal verb) – restrain, repress, keep in check/keep under control.rage (verb) – be violent, be turbulent, be uncontrollable.gun down (phrasal verb) – shoot, kill, execute.captor (noun) – custodian, keeper, enslaver/detainer.flee (verb) – run away, leave, escape.account (noun) – description/report, narration, statement.reach out (phrasal verb) – contact someone for help/assistance/cooperation.prudent (adjective) –  wise, advisable, sensible.circumspect (adjective) – cautious, careful, wary.disseminate (verb) – spread, circulate, publicize.distraught (adjective) – very worried, distressed/devastated, shattered.rushed (adjective) – hasty, hurried, done hurriedly. saga (noun) – lengthy explanation, lengthy statement; chain of events.appraisal (noun) – assessment, evaluation, judgement.dupe (verb) – deceive, cheat, mislead/misguide.#FancyJ

RC

Deaths in Mosul The revelation that 39 Indians were killed in Iraq should have been made with sensitivity The government’s announcement that the remains of 39 Indian workers, kidnapped four years ago by the Islamic State, have been found near Mosul in Iraq, has brought a painful closure to the episode. According to External Affairs Minister Sushma Swaraj, remains found in a mass grave have been matched conclusively with DNA samples for all but one of the men declared missing almost four years ago. Part of a group of construction labourers held by the IS shortly after the fall of Mosul in June 2014, they had last contacted their families in the middle of that month and said they were being held in a basement while fighting raged outside. Since then, there was no word from them, but for the version of Harjit Masih, the 40th hostage who had managed to escape. Mr. Masih said he was the only one to escape from being gunned down by the IS captors, and had subsequently fled with a group of Bangladeshi labourers. His account was never accepted by the government. With the recovery of the remains in Mosul after its recapture by Iraqi forces last year, the government must retrace Mr. Masih’s steps in Iraq in a wider effort to end its investigations into the killings. This inquiry should also help answer larger questions about the operating procedure followed by the authorities. On the positive side, the government followed every lead in the case, and reached out to governments in Iraq, Syria and Turkey in the effort to get any available information. However, it would have been more prudent for the authorities to be circumspect instead of unnecessarily talking up the chances of finding the men alive. At various points, the government told the families that the men had been seen at a construction site, at a church in Mosul, and even that they were being kept in a prison in Badush, a village on the edge the city of Mosul. Subsequent investigations, including visits by Minister of State for External Affairs V.K. Singh, revealed those leads to be wrong. It turned out, for instance, that the prison in Badush had been destroyed by the IS early during its occupation, something that should have been verified before such information was disseminated to distraught family members. On receiving word that the Martyrs Foundation, an Iraqi agency that helped identify the remains, would announce that they had matched the DNA of the 39 men, the Ministry of External Affairs could have shown more sensitivity by informing the families before Ms. Swaraj made the rushed announcement in Parliament. The biggest lesson from the tragic saga is the need for a thorough appraisal of procedures for Indian labour going abroad, so that they are not duped or remain uninformed about the risks of going to conflict areas.#FancyJ

Foreign Investments

For a developing country like India, the total capital requirements cannot be met with internal sources alone, so foreign investmentsbecome an important part in supplying capital. The two most common foreign investments are FDI and FPI.Foreign Direct Investment (FDI) as the name suggests is investing directly in another country. A foreign company which is based insome other country like France invests in India either by setting up a wholly owned subsidiary or getting into a joint venture with somecompany based in India and then conducts its business in India.Examples: Various software companies like IBM India which is initially based in Unites States but has opened its subsidiaries indifferent part of India, Maruti Suzuki is yet another example in which Suzuki of Japan had joint ventured with Maruti Udyog Ltd. SBI lifeinsurance is a joint venture life insurance company between State Bank of India (SBI) and BNP Paribas Assurance of France and thereare many other examples.Foreign Portfolio Investment (FPI) is similar to FDI in a way that this is also direct investment but investment in only financial assetssuch as stocks, bonds etc. of a company located in another country. In contrast to FDI, a portfolio investment is an investment made byan investor who is not involved in the management and day-to-day business of a company.Example: Any foreign company invests in the shares of Infosys (based in India).Foreign Institutional Investor (FII) is an investor of group of investors who bring FPIs. Institutional investors include hedge funds,insurance companies, pension funds and mutual funds. They participate in the secondary market of economy. To participate in themarket of India, FIIs must register themselves with Securities and Exchange Board of India (SEBI).FDI versus FPIFDIFPI1.Investment in productive assets (whose value increase over time) likeplant and machinery for a business2.Investment gives investores ownership right as well as management right3.Engage in decision making of a firm4.Investors enter a country with long-term approach5.So investors cannot depart from the country easily6.Investment is greater than 10% 1.Investment in financial assets like stocks, bonds,mutual funds, etc.2.Investment gives investors only ownership right andnot management right3. Not involved in decision making4.Investors can plan for long but often have short-termplans5. Investors can easily depart from the country6.Investment is less than 10%Out of FDI and FPI, FDI is most important for any economy because it is a type of permanent investment in the economy. Like IBMIndia has its branches in India, it cannot easily shut its business from India because it has set up a whole infrastructure in India, IBM willitself go into great losses. Also setting up subsidiaries give employment to people of India. While in FPI, the investors can exit a nationeasily whenever they want. #FancyJ

Bharat QR(Quick Response) code

Bharat QR, developed by NPCI, Mastercard, and Visa, is an integrated payment system in India.  The money transferred through BharatQR is received directly in the user's linked bank account. It provides a common interface for American Express, Visa, Mastercard, and RuPay cards. BharatQR is inter-operable with all the banks. Currently, BharatQR is supported on Android and iOS devices. BharatQR was launched in September 2016 as per the directions set by the Reserve Bank of India with aim of facilitating India in transition to a less-cash society. The system helps in enabling digital payments to reduce the usage of card swiping machines for payment.  how  Bharat QR works? Bharat QR is an integrated payment system. It uses your mobile phone to pay through your debit or credit card by scanning a code at the merchant’s place. It does away with the need to physically swipe debit or credit cards. You must have your bank’s app with the Bharat QR payment facility. All you have to do is open the app, click the Bharat QR icon (some banks just say ‘Scan’), scan the QR code at the merchant establishment, enter the amount and your PIN. The payment is over. The system, also, supports Dynamic QR code generation which eliminates the need of entering the amount for payment.Scanning the QR code is not the only way to make payments. Bharat QR payments can be made through account number with IFSC code, UPI payment address or Aadhaar number. Bharat QR eliminates the need to physically hand over your debit or credit card to the merchant. The merchant must have registered with the bank for receiving payments through Bharat QR. #ARCHANA

BUDGET 2018- list of all schemes

The Union Finance Minister Arun Jaitley announced various schemes in the Union Budget 2018-19 on February 1, 2018. These Budget schemes have been announced with the objective to uplift the poor and farmers. The union Budget 2018-19 is the Modi government's last full year Budget in which the Finance Minister began his speech by highlighting the government's economic reforms undertaken in the last four years and its achievements. Here, we’ll see all the new schemes launched by the government in Budget 2018-19.1.Kifayati Aawas yojna: The Central Government will create a dedicated affordable housing fund in National Housing Bank. In the Budget 2018-19, Jaitley said that "My government will set up a dedicated affordable housing fund in the National Housing Bank, which will be funded from the loans given to priority sector." The government has planned that by the end of 2022, everyone will have their own house. For this, more than one crore households are being constructed in the rural areas in the current and next financial year under the Pradhanmantri Awas Yojana.2.Ayushman Bharat Scheme (National Health Protection Scheme): National Health Protection Scheme will be launched to cover 10 crore poor and vulnerable families. Under this, up to Rs 5 lakh will be provided to each family per year in secondary and tertiary care institutions. This scheme will have 50 crore beneficiaries. So far under the National Health Insurance Scheme, insurance cover of Rs 30,000 was available only. This is a big increase in this regard.3.Kisan Credit Card to Fishermen: On the lines of the Kisan Credit Card, the Finance Minister has announced a card to fishermen and cattle owners. This will make enable them to avail the easier loans. The Government says that this will help the people associated with the milk production business in rural areas. Apart from this, financial assistance will also be provided to fisheries.4.Gobar-Dhan Yojna (Galvanizing Organic Bio-Agro Resource Fund Scheme): The government announced a new scheme Gobar-Dhan (Galvanizing Organic Bio-Agro Resource Fund) scheme under its efforts to improve the lives of the villagers. The Government said that under this scheme, solid waste of dung and fields will be changed into compost, biogas and bio-CNG. He said that under the vision of inclusive society formation, the government has identified 115 districts for development.5.National Bamboo Mission: Finance Minister Arun Jaitley has also proposed the proposal of National Bamboo Mission. An amount of Rs. 1,290 crore will be allocated under this scheme. This will help in the development of bamboo production as an industry. This will help the people of rural and tribal areas.6.Eklavya School: As per the Finance Minister, the Eklavya schools will be established for scheduled caste students by 2022 along the lines of Navodaya schools. He said that Eklavya model residential schools will be set up in each Block having more than 50 percent tribal areas and 20,000 tribal people. These schools will be part of Navodaya Vidyalayas and besides training in sports and skill development, there will also be special facilities for preserving local art and culture.7.Revitalising Infrastructure and Systems in Education (RISE): In his Budget 2018 speech, Jaitley unveiled a new scheme called Revitalising Infrastructure and Systems in Education or RISE. The RISE scheme will be financed via a restructured higher education financing agency (HEFA) that is functioning for the last two months as a non-banking financial company. It aims to lend low-cost funds to government higher educational institutions. Presently, HEFA is looking to raise Rs20,000 crore and Budget announcement hiked this number to Rs1 trillion.While HEFA was granted a budgetary allocation of Rs250 crore in the fiscal year 2018, in FY19, the lending body will be provided a budget of Rs2,750 crore.8.Operation Green: The goal of the scheme is to double the farmers’ income by end of the year 2022. With the budget allocation of Rs. 500 Cr, Finance Minister Arun Jaitley has announced about the Operation Green in Union Budget 2018. This scheme will facilitate the farmers of the nation. This will be in line with the operation flood. To reduce the fluctuation in the pricing of Onion, Tomatoes and Potatoes the scheme has been launched.9.Prime Minister Fellowship Scheme: Finance Minister Arun Jaitley also announced the PM Fellowship Scheme during the budget. Under this, one thousand B.Tech students will be given the opportunity to do Ph.D. in IIT and IISc.10.Expansion of Ujjwala Scheme: Modi Government has set a target to provide the number of free LPG connections to the poor families under the Ujjwala scheme to reach 8 crores.11.Saubhagya Yojna: The government has targeted to increase the number of power connections in rural areas to 40 million households. This scheme is one of PM Modi's ambitious plans.12.Expansion of UDAN Yojna: 56 airports and 31 helipads being used less than the capacity will be added in the initiative to connect common man with the ‘UDAN Yojna. Along with this, the announcement of the construction of 10 major prestigious destinations for the promotion of tourism was announced. 13. Expansion of PM Vaya Vandana Yojana: The Pradhan Mantri Vaya Vandana Yojana was launched on 4th May 2017. The scheme provides regular pension income to senior citizens (60 years or more). The budget 2018-19 proposed to open this scheme for investment till March 2020. Apart from extending the scheme’s investment duration, the investment limit is also increased to Rs15 lakh from 7.5 Lakh per person.#FancyJ

Money Laundering

 Money laundering is an act of converting illegal money to legal money. By illegal money we mean the money which has come fromillegal sources of earning money like smuggling, any terrorist activity, drug trade, etc.A person who is found having money from illegal sources can be made to go to prison, or any other liable punishment. So the personsor rather criminals try to convert their illegal money to legal money so that their money appears clean which is known as moneylaundering.The banks have also been directed to look into this matter like if they find any suspicious activity in an account or there is hugetransaction of money from an account, etc.There are three stages in which money laundering is done which we will discuss later.Before that some of the methods of converting illegal money to legal money as the criminals follow includedoing investments in property or any business,multiple transfers of money in various bank accounts or from one place to another,used for purchasing foreign currency and then back to own currency,repayment of loans and credit cards,through political parties, corporate companies and the shares market, etc.The three stages of money laundering are:Placement Stage: As the name suggests, the first stage is pacing the money into the system by the methods provided above.Placing money in bank accounts, smuggling money to abroad, etc.Layering Stage: The main aim of this stage is to separate the illegal company from its source. In this stage the money placed intransferred to other accounts. The money is then distributed among various investments, like some in a business, some in charity,investments in share markets, etc.Integration Stage: Integration means joining. So in last stage of money laundering, the whole illegal money which was divided atvarious places in layering stage starts getting integrated into a single account so that the money now appears to have come fromlegal sources i.e. from businesses in the country, from share markets, any profits, etc.If the money reaches the last stage, it appears to have come from legal sources and does not draw any attention of being illegal money.To study the issue, in 2002, an act was passed by the Parliament of India called thePrevention of Money laundering Act 2002.According to Section 3 of the act: “Whosoever directly or indirectly attempts to indulge or knowingly assists or is involved in any processor activity connected with the proceeds of crime and is projecting it as the untainted property shall be guilty of the offence of moneylaundering”.A step to prevent money laundering is Know Your Customer (KYC) policy. The KYC helps to ensure that banks’ services are notmisused#FancyJ

Bancassurance

Bancassurance as the term suggests is Bank + Insurance. Bancassurance means selling insurance product through banks. It is one ofthe para banking activity which the RBI has allowed the banks to take up. For selling the insurance product, bank and insurancecompany come up in a partnership where the bank sells the insurance company’s insurance products to its clients.This arrangement benefits both the firms, the bank and the insurance company.The insurance product is of the insurance companywhile it is sold by the bank so it earns an amount from the insurance company. So the bank actually acts as an intermediary betweenthe insurance company and their customersSome examples include:SBI General Insurance Company Limited is a joint venture between the State Bank of India and Insurance Australia Group (IAG),SBI Life Insurance is a joint venture life insurance company between State Bank of India and BNP Paribas Cardiff of France,PNB MetLife Insurance Co. Ltd (PNB MetLife) is a joint venture life insurance company between Punjab National Bank andMetLife, Inc. of USA, etc. #FancyJ

CTS

Truncation is the process of stopping the flow of the physical cheque issued by a drawer at some point by the presenting bank en-routeto the paying bank branch. In its place an electronic image of the cheque is transmitted to the paying branch through the clearing house,along with relevant information like data on the MICR band, date of presentation, presenting bank, etc.This means that with this system, physical cheques will not move for clearing at different banks. This enables the outstation cheques toget cleared in a single day and also the associated cost with the movement of physical cheques gets eliminated.CTS has been implemented with a grid-based approach in New Delhi, Chennai and Mumbai with effect from February 1, 2008,September 24, 2011 and April 27, 2013 respectively. The illustrative jurisdiction of the three grids are indicated below:New Delhi Grid: National Captial Region of New Delhi, Haryana, Punjab, Uttar Pradesh, Uttarakhand, Bihar, Jharkhand and theUnion Territory of Chandigarh.Chennai Grid: Andhra Pradesh, Telangana, Karnataka, Kerala, Tamilnadu, Odisha, West Bengal, Assam and the Union Territoryof Puducherry.Mumbai Grid: Maharashtra, Goa, Gujarat, Madhya Pradesh and Chattisgarh.With the introduction of this image based clearing facility, the traditional MICR-based cheque processing has been discontinued acrossthe country.Facilities provided by cheque truncation system (CTS):All cheques drawn on bank branches falling within in the grid jurisdiction are treated and cleared as local cheques.The associated cost with the movement of physical cheques gets eliminated in case of same jurisdiction.There is no fear of loss of physical cheques while collection.There are no charges for customers in the clearing process.Efficient for banks and customers both.If a customer wants to see the physical cheque, he can request it to the bank. To meet legal requirements, the presenting banks whichtruncate the cheques need to preserve the physical instruments for a period of 10 years.All banks providing cheque facility to their customers have been advised to issue only‘CTS-2010’ standard cheques. The “CTS-2010”standard prescribes certain mandatory and optional security features to be available on cheques, and also it adds to the uniqueness ofthe images.Security in the transmission of images:The transmission of the images of the cheques is completely secured and authentic. Security is implied using the Public KeyInfrastructure (PKI). Images that do not meet the specifications are rejected. As the payments are made on the basis of the images, it isessential to ensure the quality of the images.In case of alteration in cheques:If a customer wants to do any alterations or corrections in the cheque like payee’s name and amount, he will have to issue a newcheque, and cannot do on the same cheque. This has been introduced to curtail cheque related frauds. #FancyJ

Para Banking

Banks can undertake certain eligible financial services or activities either departmentally or by setting up subsidiaries is called Para Banking. We could also define Para banking activities as the activities which are done by a Bank apart from its normal day to day activities (like deposit, withdrawal etc.).  Activities of Indian Banks which come under Para Banking are as follows Banks’ investment in Venture Capital Funds (VCFs)Banks as sponsors to Infrastructure Debt FundsEquipment leasing, Hire purchase business and Factoring servicesPrimary Dealership businessUnderwriting of Corporate Shares and DebenturesUnderwriting of bonds of Public Sector UndertakingsRetailing of Government SecuritiesMutual Fund BusinessMoney Market Mutual Funds (MMMFs)Cheque Writing Facility for Investors of MMMFsInsurance businessPension Fund Management (PFM) by banksReferral ServicesMembership of SEBI approved Stock ExchangesPortfolio Management ServicesSafety Net’ SchemesDisclosure of commissions/ remunerationsBank must follow the whole set of guidelines as given by RBI.#ARCHANA

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