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Banking Ombudsman

Banking Ombudsman is a person who hears complaints relating to certain services rendered bybanks. The Banking Ombudsman Scheme is introduced under Section 35 A of the BankingRegulation Act, 1949 by RBI with effect from 1995.There are 20 regional offices of Banking Ombudsmen in India. The latest offices are opened Jammu & Raipur. The Banking Ombudsman is a senior official appointed by the Reserve Bank of India to redresscustomer complaints. All Scheduled Commercial Banks, Regional Rural Banks and ScheduledPrimary Co-operative Banks are covered under the Scheme. A Person can make a complaint to the Banking Ombudsman for things such as, Inordinate delay in the payment or collection of cheques, drafts, bills etc.Non-payment or delay in payment of inward remittances.Non-adherence to prescribed working hoursComplaints from NRIs having accounts in India in relation to their remittances from abroad,deposits and other bank-related mattersRefusal to open deposit accounts without any valid reason for refusalLevying of charges without adequate prior notice to the customerFailure to provide or delay in providing a banking facility promised in writing by a bank or itsdirect selling agents.Forced closure of deposit accounts without due notice or without sufficient reason;Refusal to close or delay in closing the accounts.Refusal to accept or delay in accepting payment towards taxes, as required by ReserveBank/Government.Delays in receipts of export proceeds, handling of export bills, collection of bills etc. forexporters provided the said complaints pertain to the Banks operations in India.Non-acceptance of application for loans without furnishing valid reasons to the applicant It is possible to file a complaint with the Banking Ombudsman simply by writing on a plain paper.One can also file it online by sending an email to the Banking Ombudsman. Banking Ombudsmancan order the Bank to compensate the actual money loss or Rs.20 lakh (whichever is lower). Incase of Credit card related cases, the Ombudsman can order the bank to pay additional fines(upto Rs.1 lakh) for the mental harassment caused to the customer. The Banking Ombudsman does not charge any fee for filing and resolving customers’ complaints.If a person is not satisfied with the decision passed by the Banking Ombudsman, he/she canapproach the appellate authority against the Banking Ombudsmen’s decision. Appellate Authorityis vested with a Deputy Governor of the RBI. #ARCHANA

Important organisations

   International Bank for Reconstruction and Development (IBRD): An international financial institution that offers loans to middle-income developing countries.    International Monetary Fund (IMF): An international organization that foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.    Bank for International Settlements (BIS): An international company, limited by shares owned by central banks which look after international monetary and financial cooperation and serves as a bank for central banks.    Asian Development Bank (ADB): A regional development bank to promote social and economic development in Asia.    EXIM Bank: A premier export finance institution that works as both a catalyst and a key player in the promotion of cross border trade and investment.    Reserve Bank of India (RBI): The central bank of India that is charged with regulating the country’s currency and credit systems.    National Bank for Agriculture and Rural Development (NABARD): An apex development bank that review arrangements for institutional credit for agriculture and rural development.    Industrial Development Bank of India (IDBI): An Indian government-owned financial service company to provide credit and other financial facilities for the development of the fledgling Indian industry.    Institute of Banking Personnel Selection (IBPS): An autonomous agency in India enhancing human-resource development through personnel assessment selection and recruitment of Officers and Clerks in Indian banks.    Indian Banks’ Association (IBA): A representative body of management of banking in India operating in India.    Securities Exchange Board of India (SEBI): The regulatory body for the investment/securities market in India.    National Housing Bank (NHB): An apex financial institution for housing.    Small Industries Development Bank of India (SIDBI): An independent financial institution aimed to aid the growth and development of micro, small and medium-scale enterprises (MSME) in India.#RAJKUMAR  

Important banking terms

Negotiable Instruments:-    Bill of Exchange: A bill of exchange is a binding agreement by one party to pay a fixed amount of cash to another party as of a predetermined date or on demand.    Cheques: An order to a bank to pay a stated sum from the drawer’s account, written on a specially printed form.    Ante Dated Cheque: Cheques which have been written by the maker, and dated at some point in the past.    Bounced Cheque: Check that cannot be processed because the writer has insufficient funds.    Crossed Cheque: These cheques can only be deposited directly into a bank account and cannot be immediately cashed by a bank or any other credit institution.    Post Dated Cheque: Cheque that is written by the drawer (payer) for a date in the future.    Stale Cheque: A cheque which a bank will not accept and exchange for money or payment because it was written more than a certain number of months ago.    Cheque Truncation: It is the conversion of a physical cheque into a substitute electronic form for transmission to the paying bank.    Promissory Note: A financial instrument that contains a written promise by one party to pay another party a definite sum of money either on demand or at a specified future date.     Various Types of Accounts:-    Current Account/Demand deposit Account: An active account catering for frequent deposits and withdrawals by cheque.    DeMat Account: This account is opened by the investor while registering with an investment broker (or sub-broker).    Fixed deposit account or time deposit account: It is a financial instrument provided by banks which provides investors with a higher rate of interest than a regular savings account, until the given maturity date.    NOSTRO Account: A bank account held by a UK bank with a foreign bank, usually in the currency of that country.    Recurring Deposit Account: It is opened by those who want to save regularly for a certain period of time and earn a higher interest rate.    Saving Account: A deposit account held at a bank or other financial institution that provides principal security and a modest interest rate.      Foreign Trade:-    Current Account Deficit: A current account deficit is when a country’s government, businesses and individuals import more goods, services and capital than they export.    Financial Inclusion: Financial inclusion is the delivery of financial services at affordable costs to massive sections of disadvantaged and low income groups.    Fiscal Deficit: When a government’s total expenditures exceed the total revenue.    Foreign Direct Investment (FDI): It is a controlling ownership in a business enterprise in one country by an entity, based in another country.    Foreign Institutional Investors (FII): FIIs are those institutional investors which invest in the assets belonging to a different country other than that where these organizations are based.    General Anti-Avoidance Rules (GAAR): A GAAR is a statutory rule that empowers a revenue authority to deny taxpayers the benefit of an arrangement that they have entered into for an impermissible tax-related purpose.    Money Laundering: Any act to hide the identity of illegally obtained proceeds so that they appear to have originated from genuine sources.    Participatory notes or P-Notes: These are instruments, issued by registered foreign institutional investors (FII) to overseas investors, who wish to invest in the Indian stock markets without registering themselves with the market regulator, the Securities and Exchange Board of India (SEBI).    Quantitative easing and tapering: A monetary policy in which RBI purchases government securities or other securities from the market in order to lower interest rates and increase the money supply.     Electronic Payment Systems in Banks:-   National Payments Corporation of India (NPCI): NPCI is an umbrella organization for all retail payments system in India.    Clearing Corporation of India Limited (CCIL): It is a joint stock company with share capital contribution by major banks and financial institutions.    Electronic Clearing Service (ECS): ECS is an electronic mode of funds transfer from one bank account to another and can be used for both    Electronic Funds Transfer (EFT): It is a system of transferring credit and debit purposes.money from one bank account directly to another without any paper money changing hands.    National Electronic Funds Transfer (NEFT) System: It is an Indian system of electronic transfer of money from one bank or bank branch to another.    Real Time Gross Settlement (RTGS) System: These are specialist funds transfer systems where the transfer of money or securities takes place from one bank to another on a “real time” and on “gross” basis.  #RAJKUMAR  

SARFAESI

SARFAESI (Securitisation and Reconstruction of Financial Assets and Enforcement of SecurityInterest) Act, 2002 is an act which came in 2002 to allow banks and other financial institutions torecover their non-performing assets (NPAs) or bad loans without the intervention of the Court. The Act provides three alternative methods for recovery of non-performing assets,namely:SecuritisationAsset ReconstructionEnforcement of Security without the intervention of the Court When does the act come into force?When the customers defaults on loans i.e. not able to give back the loan amount to bank andother financial institutions covered under the act, the loan amount given becomes NPA. Nowbanks have right to auction residential or commercial properties to recover these loans under thisact without going to courts. What rights does the act give to the bank?To issue a notice to the customer defaulted on loan to repay the dues within 60 days fromthe date of notice.To issue notice to the person who has been sell any of the secured properties by thecustomer defaulted on loan.To ask the debtor who has to pay any amount to the customer defaulted on loan. (It mightbe possible that the defaulted customer has given loan to somebody else)Secured Agricultural land does not come under the act. Procedure to recover loan:When a customer takes a loan against mortgaging any property, he himself owns thepossession of the property.When a loan becomes an NPA, a notice is issued to the customer. If after this also customerdoes not give back the amount, the bank takes possession of the assets being mortgaged.After this the bank gives advertisement in one English Newspaper and one regionalnewspaper giving details about the property and other related information about auctionand invite bids from the people.The act does not imply to loans below Rs 1 Lac or to those loans whose 20% or less of the totalamount + interest value is left to be repaid to lender (banks or other financial institutions). #ARCHANA

E-Lobby

E-Lobby is a facility which is now provided by banks so that their customers can do their banking transactions as per their convenience24×7 i.e. without any time restriction. E-Lobby provides the facility on bank holidays also.Today people have strict time schedule, whether a businessman or an employee. It is not possible for many to stand in long queues inbanks to get their work done. So the concept of E-Lobby gives a long relief to these people.Self service facilities which can be done at banking e-lobbies includeATM withdrawals, cash deposits, card-to-card transfers, mobile phone top-ups, railway booking, passbook printing, NEFT, opening of FD/RD accounts, SMS alerts, cheque drop box, bill payments, mini statements, etc.Some facts about E-Lobby:1.The features depend on different bank e-lobbies.2.For providing Internet banking transactions, there is an Internet banking kiosk in the e-lobby for undertaking. The kiosks are userfriendlyand can be used at ease by the customers.3.Like the ATM machine works, same way the display messages on the screen guide the users for turning the pages untilcompletion of the process.4.For printing passbooks, passbooks containing barcode of the Bank are to be inserted in the machine for updation.5.Different bank e-lobbies provide different facilities, like how much cash can be deposited per day, which denominations of notescan be deposited, etc.#FancyJ

words list on RC

overwhelm (verb) – overload, swamp; affect/disturb.scrubber (noun) – brush or something like that.discard (verb) – throw away, dispose of, dump.inhale (verb) – breathe in, draw in, gasp.condaminants (noun) – dirty/polluted/unsanitary materials.accumulation (noun) – collection, stockpile, reserve (of something).aggravate (verb) – worsen, make worse, exacerbate.heartening (adjective) – encouraging, boosting, comforting.come forward (phrasal verb) – volunteer, step forward, make oneself available for.commission (verb) – order, authorize; engage (a person to do something).binding (adjective) – irrevocable, unalterable, permanent.marine (adjective) – relating to the sea, ocean.stagger (verb) – astonish, shock, surprise/disconcert.debris (noun) – rubbish, waste, remains.durable (adjective) – lasting, enduring, indestructible.segregation (noun) – separation, setting apart, sorting out.retrieve (verb) – get back, repossess, regain.lie (in) (verb) – consist, exist, be present.consensus (noun) – an idea or opinion that is shared by all the people in a group. agreement, concurrence.business as usual (phrase) – routine, a normal pattern, a normal state of affairs.#FancyJ

READING COMPREHENSION

The presence of plastics in drinking water must compel drastic action Plastics are now widely present in the environment, as visible waste along coastlines, in lakes and rivers, and even in the soil. The recent finding that microplastic particles are found even in ‘safe’ bottled water indicates the magnitude of the crisis. There is little doubt that the global production of plastics, at over 300 million tonnes a year according to the UN Environment Programme, has overwhelmed the capacity of governments to handle what is thrown away as waste. Microplastics are particles of less than 5 mm that enter the environment either as primary industrial products, such as those used in scrubbers and cosmetics, or via urban waste water and broken-down elements of articles discarded by consumers. Washing of clothes releases synthetic microfibres into water bodies and the sea. The health impact of the presence of polypropylene, polyethylene terephthalate and other chemicals in drinking water, food and even inhaled air may not yet be clear, but indisputably these are contaminants. Research evidence from complementary fields indicates that accumulation of these chemicals can induce or aggravate immune responses in the body. More studies, as a globally coordinated effort, are necessary to assess the impact on health. It is heartening that the WHO has come forward to commission a review of the health impact of plastics in water. Last December in Nairobi, UN member-countries resolved to produce a binding agreement in 18 months to deal with the release of plastics into the marine environment. The problem is staggering: eight million tonnes of waste, including bottles and packaging, make their way into the sea each year. There is now even the Great Pacific Garbage Patch of plastic debris. India has a major problem dealing with plastics, particularly single-use shopping bags that reach dumping sites, rivers and wetlands along with other waste. The most efficient way to deal with the pollution is to control the production and distribution of plastics. Banning single-use bags and making consumers pay a significant amount for the more durable ones is a feasible solution. Enforcing the Solid Waste Management Rules, 2016, which require segregation of waste from April 8 this year, will retrieve materials and greatly reduce the burden on the environment. Waste separation can be achieved in partnership with the community, and presents a major employment opportunity. The goal, however, has to be long term. As the European Union’s vision 2030 document on creating a circular plastic economy explains, the answer lies in changing the very nature of plastics, from cheap and disposable to durable, reusable and fully recyclable. There is consensus that this is the way forward. Now that the presence of plastics in drinking water, including the bottled variety, has been documented, governments should realise it cannot be business as usual.#FancyJ

CREDIT RATING AGENCIES IN INDIA

A credit rating agency is a company which rates the debtors on the basis of their ability to pay back the debt in timely manner. They rate large scale borrowers, whether companies or governments.There are three big credit rating agencies in the world which are Standard and Poor’s(S&P;), Moody’s and Fitch Ratings.There are mainly 4 credit rating agencies in India which are Credit Rating and Information Services of India Limited (CRISIL)       It is India’s first credit rating agency which was incorporated and promoted by the erstwhile ICICI Ltd, along with UTI and other financial institutions in 1987.    After 1 year, i.e. in 1988 it commenced its operations.It has its head office in Mumbai.    CRISIL’s majority shareholder is Standard & Poor’s. Investment Information and Credit rating agency (ICRA) The second credit rating agency incorporated in India was ICRA in 1991.It was set up by leading financial/investment institutions, commercial banks and financial services companies as an independent and professional investment Information and Credit Rating Agency.It is a public limited company.It has its head office in New Delhi.ICRA’s majority shareholder is Moody’s. Credit Analysis & Research Ltd. (CARE) The next credit rating agency to be set up was CARE in 1993.It is the second-largest credit rating agency in India.It has its head office in Mumbai.CARE Ratings is one of the 5 partners of an international rating agency called ARC Ratings. ONICRA It is a private sector agency set up by Onida Finance.It has its head office in Gurgaon.It provides ratings, risk assessment and analytical solutions to Individuals, MSMEs and Corporates.It is one of only 7 agencies licensed by NSIC (National Small Industries Corporation) to rate SMEs.They have Pan India Presence with offices over 125 locations.  Apart from these credit rating agencies, there are three more credit rating agencies which are also registered with SEBI. These are Fitch Ratings India Private LtdBrickwork Ratings India Private Limited SME Rating Agency of India Ltd. (SMERA) Note: Out of four credit rating agencies, CRISIL, ICRA, CARE and ONICRA, ONICRA is a private sector agency, all others are public sector companies. There are 6 credit rating agencies which are registered with SEBI. These are CRISIL,ICRA, CARE, Fitch India, Brickwork Ratings, and SMERA. # MONISHA

INFLATION

Inflation Inflation is a persistent increase in the general price level of goods and services in an economy over a period of time In India for inflation measurement Base year is 2011-2012 Types of Inflation-  1. Demand pull inflation  2. Cost push Inflation  3. wages Inflation  4. Imported Inflation  1. Demand Pull Inflation- occurs demand for goods and services exceed the supply. 2. Cost Push Inflation- Price increase due to increase in price of other products.  3. Wages Inflation- It occur due to increase in wages as a result purchasing power of people increase.  4. Imported Inflation- The general price level rises in a country because of the rise in prices of imported commodities. Categories of Inflation-  Creeping Inflation- When there is a general rise in prices at very low rates, which is usually between 2-4 percent annually.  Walking Inflation - This type of strong, or pernicious, inflation is between 3-10% a year. It is harmful to the economy because it heats up economic growth too fast.  Galloping Inflation- When inflation rises to ten percent or greater, it wreaks absolute havoc on the economy. Money loses value so fast that business and employee income can't keep up with costs and prices.  Hyper Inflation- Hyperinflation is when the prices skyrocket more than 50% -- a month. It is fortunately very rare. Inflation Related Terms  1. Deflation- Deflation is the opposite of inflation -- it's when prices fall. It is caused by a reduction in the supply of money or credit . 2. Hyperinflation- Extremely rapid or out of control inflation. Hyper inflation is a situation where the price increases are so out of control that the concept of inflation is meaningless.  3. Stagflation- A condition of slow economic growth and relatively high unemployment- a time of stagnation- accompanied by a rise in rises , or inflation. 4. Disinflation- A slowing in the rate of price inflation. Disinflation is used to describe instances when the inflation rate has reduced marginally over the short term. It is used to describe periods of slow inflation. 5. Reflation- Reflation is the act of stimulating the economy by increasing the money supply or by reducing taxes. it is opposite of disinflation. #MONISHA

TYPES OF BANK

BankA bank is a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly by loaning or indirectly through capital markets. A bank links together customers that have capital deficits and customers with capital surpluses.Types of BankPara banking- When Bank provide banking services except the general banking facility. Narrow Banking- When banks invest its money in government securities instead investing in market to avoid risk.Overseas Banking- Banks having branches in other countries besides its origin country. Example Bank of Baroda has maximum foreign branches by any indian bank Offshore Banking- Bank which accept currency of all countries. Offshore banks are in those countries which declares them as Heaven Bank Country. Example- Swiss BanksGreen banking- Promoting environmental-friendly practices and reducing your carbon footprint from your banking activities.Islamic bank- Those Banks which work according to Islamic Laws. Concept originate in Egypt. Islamic bank opens at Cochin in kerala in 2010.Kiosk Banking- When we Deposit or withdraw money from booths , it is called Kiosk banking.Defence Banking- Full banking services made available to all members of the Defence force, including non-uniformed personnel and other civilians. Retail Banking- Retail banking refers to the division of a bank that deals directly with retail customers. Also known as consumer banking or personal banking, retail banking is the visible face of banking to the general public. Banking on Wheel- to provide banking services in remote villages which are devoid of banking facilities as part its financial inclusion plan.Wholesale banking-Wholesale banking is the provision of services by banks to organisations such as Mortgage Brokers, large corporate clients, mid-sized companies, real estate developers and investors, international trade finance businesses, institutional customers (such as pension funds and government entities/agencies), and services offered to other banks or other financial institutions. #MONISHA

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