Saturday, 10 September 2011

BANKING AWARENESS IMPORTANT POINTS TO REMEMBER


LLP: Limited Liability Partnership

Organizations maintains the Rural Infrastructure Development Fund (RIDF) -NABARD

TRIPS – ‘Trade Related Intellectual Property Rights’
TRIMS – ‘Trade Related Investment Measures’
are associated with ---Dunkel Proposal

Many a times we read a term in financial news papers ‘SEPA’. What is the full form of the term
Single Euro Payments Area


 Marginal Propensity to Consume (MPC) means – When income rises consumption Remains constant

National Agricultural Cooperative Marketing Federation is known as—
 NAFED


NABARD(development bank) recently launched “Farmers Information Service via SMS” to help farmers in Gujarat state

ESMA: Essential Services Maintenance Act

Trade control in India : DGFT(Directorate general of Foreign Trade)

ANBC: Adjusted Net Bank credit
Adjusted Net Bank Credit is Net Bank Credit added to investments made by banks in non-SLR bonds (in held-to-maturity (HTM)) or it is the credit equivalent of off-balance-sheet exposures, whichever is higher.

Green Tax on vehicles: The Maharashtra government  decided to levy environment tax on commercial vehicles which are over eight years old and private vehicles which are over 15 years

Branchless Banking:
Banks will not have many branches as used to be in the good old days. Instead, the number of branches will be restricted and will conduct only a specified core business.
 Banks will launch/operate many delivery channels like ATMs, Mobile Banking/ Internet Banking etc sot that people are not required to visit a branch for their usual banking needs.
This means banks will issue only debit or credit cards for all types of day-to-day financial
transactions. Cheques/cash payments will not be allowed.

Rural Woman can avail the benefit of Mahila Samriddhi Yojana if they open their account in
Rural Post offices.

DTC stands for Direct Tax Code

ULIP:  Unit Linked Insurance Plan

CFRA: Combined Finance and  Revenue Accounts

CGRA: Curreny and Gold revalution Account

Fully owned by RBI:
Fully owned: National Housing Bank(NHB),
Deposit Insurance and Credit Guarantee Corporation of India(DICGC),
Bharatiya Reserve Bank Note Mudran Private Limited(BRBNMPL

Minimum Support Price recommended by  Commission for Agricultural Costs and Prices (CACP)

NDS: Negotiated Dealing System  is an electronic platform for facilitating dealing in Government Securities and Money Market Instruments.

Two products from SIDBI
Assistance for MSME
1. GEMS: Growth capital and Equity Assistance for MSMES.
2. FACE: Flexible Assistance for capital expenditure

Electronic payment products viz.
Real Time Gross Settlement (RTGS),
National Electronic Funds Transfer (NEFT),
National Electronic Clearing Service (NECS) and
Electronic Clearing Service (ECS)

CGTMSE: Credit guarantee and Fund Trust for Micro and Small Enterprises
Setup by GOI+SIDBI

IBPC: Inter bank Participation Certificate

FIRC: Foreign Inward Remmitance Certificate

CLSS; Credit linked Capital Subsidy scheme

SEPA: Single Euro Payment Area

ESMA: Essential Service Maintenance Act

CBLO:  Collateralized Borrowing and lending obligation(Money Market instrument)

Different Types of Money Market Instrument:
T-bills
Repurchase Agreements
Commercial papers,
Certificate of Deposit used by banks.


IRS-Interest rate swap
FRA- Forward Rate Agreement
both used by CCIL(clearing cooperation of India Limited)

When a loan granted for purchase of white goods called consumer durable loan

Objective of NFSM(National Food Security Mission) To increase the production of wheat, rice and pulses on a substainable basics

FNC-financial Holding company headed by Shyimaal Gopinath

NSDP: National summary dat apage

SDDS: special Data dissemination standard developed by IMF.

FINO:Financial information and Network operations

RBIs First suboffice in north eastern state -Tripura

Guarentee to exporters-ECGC-Export Credit Corporation of India

Credit History of Borrowers by CIBIL (credit Information Burea india Limited)

BIFR: Board for Financial and Economic Reconstruction

ESCAP: Economic and Social commision for Asia and Pacific

EPS: Earning Per share-shows what a company had earned for each of its shares

IRAC: Income Recognination and Asset Classification

DIPB: Duty free Entitled passbook

DIPP - Department of Industrial Policy and Promotion (MINISTRY OF COMMERCE & INDUSTRY)

FIPB(body/agency set up by Govt. of India to increase the flow of foreign investment in the country).  Foreign Investment Promotion Board

FEMA: Foreign Exchange Management Act.

NSDL:  National Securities Depository Limited

FIMMDA: Fixed income Money Market and Derivatives Association

FIEO: Federation of Indian Export Organisations
FIEO President- Ramu S Deora

The Market in which  long term securities sold as stocks and bonds are bought  and sold is called Capital Market

CAMEL: Capital Adequecy, Assset quality, Management quality, Earnings quality, Liquidity

CORE: Centralised Online Realtime Electronic

CRISIL: Credit Rating Information Services of India ltd

ICRA: Investment Information and Credit Rating Agency of INdia

FRBM: Fiscal Responsibility and Budget Management

FSLRC: Financial Sector Legislative Reforms Commision (Headed by Finance Minister)

RDBFI: Recovery of Debts due to Banks and Financial Inclusion

PFRDA: Pension fund Regulatory Developent Authority

SARAFASI: Securitazation and Reconstruction financial Assets and Enforcement of Security Interest

CSR: Corporate Social Responsibility
To ensure companies takes  steps for rehabilitation of project affected people

DSCR:Debt Service Coverage Ratio

FSDC- Financial Stability and Development Council

STRIPS: Seperate Trading for Registered interest and Payment systems

SWIFT: society for World wide InternetFinancial telecommunication Code

ICAAP: Internal Capital Adequacy Assessment Process (done by bank itself)

STCI: Securities Trading Coorporation of INDIA( RBI promotes STCI to PSBs)

SREP: Supervisory Review and Evaluation(process done by RBI)

CAFRAL: Center for Advanced Finance Reasearch and Learning

NOHC: Non Operative Holding Company

ASHA: Accredited Social Health Activist

COPRA: consumer Protection ACt

TRIFIED: Tribal cooperative Marketing Development federation of India Limited

COMESA: Common Market for Eastren and Southern Africa.

TERC: Trade and Economic Relations Committee( headed by Prime Minister)

BIFR: BUreau of Industrial and Financial Reconstruction

FLCC: Financial Literacy and Credit Counselling

CENVAT-Cantral Value ADDED TAX,  excise duty/service tax is paid only when goods are consumed. Till then, burden of duty gets passed on to the next buyer/customer

CAPART: Council for Advancement of People's action and Rural Technology

SABLA: A woman welfare programme launched by the Central govt
Committies:

Tarapore Committee submitted its report on “Full Convertibility on Rupee” in Capital account

committee recommended abolition of tax rebates -Kelkar Committee 

The Reserve Bank has constituted a working group to review the current operating procedure of monetary policy, as transmission of the policy to the rest of the system remains imperfect. The group, to be headed by RBI executive director Deepak Mohanthy , will also review the liquidity adjustment facility (LAF), through which the central bank manages money supply in the system on a day-to-day basis

Deepak  Mahanty committee- related to Base rate

Usha Thorat committee committee sugested 75000 villages will have banking services by the year end 2012

RBI Governor heads the Sub-committie of FSDC(Financial stability development Concil)

Y.H Malegam committee-MFI Sector

Pranab sen committe -related to Slum

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