Banking Terms And Abbreviations

Terms	Full Form	Definition
FPI	Foreign Portfolio Investment	In which foreigners purchase or Issue company’s bond and stock by depositing money in the bank.
FSLRC	Financial Sector Legislative Reforms Commission	The government of India established it in 2011. If the financial market is affected by legislative then FSLRC has the rights to rewrite the legislative to maintain the financial market.
GDP	Gross Domestic Product	It is the measure to check the growth of the economy of the country. It is the ultimate value of services & goods produced at a given specified period
GDR	Global Depository Receipt	It is issued in the EURO market. Basically, it is used by an Indian company to raise funds in International or foreign currency.
GFD	Gross Fiscal Deficit	It is used to differentiate the total expense from non-debt capital receipt and revenue receipt.
GIC	General Insurance Corporation	Established in 1972. Its main objective was to manage and control the Indian insurance sector.
GAAR	General Anti-Avoidance Rule	The GAAR was made for anti-tax avoidance in 2012. Our Former Finance Minister “Pranab Mukherjee” formed this rule.
GPD	Gross Primary Deficit or Gross Fiscal Deficit	We can easily calculate the fiscal deficit or primary deficit by using the given formula.
GIRO	Government Internal Revenue Order	This is a panel controlled by Reserve Bank of India (RBI). Umesh Bellur is the Chairman of GIRO. RBI started It to centralize the system of bill payment.
HDFC	Housing Development Finance Corporation	Established in 1977. The motto of HDFC is “With you right through”. HDFC provides housing loans in India.
HFT	Held For Trading	It is defined as an asset purchased with a motive to receive short-term gain from it. That’s why it is also addressed as Short-term marketable security.
IBS	International Banking Statistics	Its purposes are, to provide guidelines to all reporting countries for reporting the data and to provide the complete detail about present country practicing the data reported.
ICAR	Indian Council Agricultural Research	Established in 1929 with a motto is “agri-search with a human touch”. It helps in studying agriculture because ICAR is the head of the department of agriculture in India.
ICICI	Industrial Credit and Investment Corporation of India	Established in 1994. If this bank is observing from assets ‘point of view, it stands as the 2nd largest bank of India and from Market Capitalization point of view, ICICI stands as the 3rd largest in India. ICICI owns a large network all over the world.
ICMR	Indian Council of Medical Research	ICMR has been one among the oldest basis for many medical types of research that took place in India. The government of India established this in India to expand the research center for the welfare of India.
IDBI	Industrial Development Bank of India	A subsidiary of Reserve Bank of India (RBI).hence it is controlled and managed by RBI.
IFC	International Finance Corporation	Established in 1956. The corporation provides help to many developing countries and many other private sectors by lending them money. The number of countries that joined with IFC is 184.
IFCI	Industrial Financial Corporation of India	It is a 1948, the government set up the financial institute. Its original purpose is to provide loans for the long term and medium term to their customers.
IIP	Index of Industrial Production	It is published every month by CSO (Central Statistical Organization). It is basically an index which is used to reflect the economy conditions and also reflects the growth of Industrial unit. CSO is the controlling body of IIP.
IMF	International Monetary Fund	An International Financial Institution established in 1945. The main objective of IMF is to maintain the flow of foreign currency in the Indian market.
IRBI	Industrial Reconstruction Bank of India	Established in 1985. This bank provides small & medium sectors with the credit facilities. IRBI has enough power to work and take enough steps to remove and cure the industrial sickness.
ISDA	International Swaps & Derivatives Association	A trade association established in 1985. The role of ISDA is to observe the derivative transactions. Therefore ISDA makes a master agreement in order to notify the derivative transactions. As ISDA brings the transparency in trade so it also reduces the credit risk.
ISIC	International Standards Industrial Classification	ISIC does classify all economic activities which are productive in nature. So it collects the statistics on all these economic activities and provides it.
ISO	International Standards Organization	It was a non-governmental organization established in 1947 with 162 members. ISO defines and represents the standards to be used by the national organization.
LBS	Locational Banking Statistics	It basically helps in International Banking Business. LBS was formed in the year of 1970. It reflects the growth that EURO currency has attained in the market and also the breakdown it suffers.
LIBOR	London Interbank Offer Rate	The bank accepts these rates, at the time of fund borrowing. LIBOR is actually named as British Banker Association LIBOR or BBA LIBOR.
LERMS	Liberalized Exchange Rate Management System	This system helps to exchange the currency or to control or manage the exchange rate system.
LIC	Life Insurance Company of India	When LIC comes into the existence in 1956, many small companies merged with LIC. It is basically an investment company with its headquarter in Mumbai.
LCR	Liquidity Coverage Ratio.	LCR = HQ LAS / Net cash outflows
LRMT	Liquidity Risk monitoring Tools	It is a tool that helps to keep a check on the liquidity of risk and is considered under BASEL III.

Banking Awareness,

Q1. When a Bank provides a loan for purchase of white goods, it is categorised as-?

(a) Consumption loan

(b) White Goods loan

(c) Consumer Durable Loan

(d) Working Capital

(e) None of the given options is true

S1. Ans.(c)

Sol. Consumer Durable Loan is a finance option for the purchase of (White Goods) household items like Washing Machines, Refrigerators, AC, LED, LCD, Microwaves etc.

Q2. Fixed Deposits and Recurring Deposits are-

(a) repayable after an agreed period

(b) repayable on demand

(c) not repayable

(d) repayable on demand or after an agreed period as per bank’s choice

(e) None of the given options is true

S2. Ans.(d)

Sol. A fixed deposit (FD) 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.And Recurring Deposit is a special kind of Term Deposit offered by banks in India which help people with regular incomes to deposit a fixed amount every month into their Recurring Deposit account and earn interest at the rate applicable to Fixed Deposits.

Q3. What is the full form of ‘FSDC’ which is used in financial sectors?

(a) Financial Security and Development Council

(b) Financial Stability and Development Council

(c) Fiscal Security and Development Council

(d) Fiscal Stability and Development Council

(e) None of the given options is true

S3. Ans.(b)

Sol. Financial Stability and Development Council (FSDC) is an apex-level body constituted by the Government of India. Chairperson: The Union Finance Minister of India.

Q4. FSDC was set up by the Government as the apex level forum in-

(a) September 2002

(b) January 2016

(c) March 2012

(d) July 2005

(e) December 2010

S4. Ans.(e)

Sol. With a view of strengthening and institutionalizing the mechanism for maintaining financial stability, enhancing inter-regulatory coordination and promoting financial sector development, the Financial Stability and Development Council (FSDC) was set up by the Government as the apex level forum in December 2010. The Chairman of the Council is the Finance Minister and its members include the heads of all Financial Sector Regulators (RBI, SEBI, PFRDA & IRDA) Finance Secretary and/or Secretary, Department of Economic Affairs (DEA), Secretary, Department of Financial Services (DFS), and Chief Economic Adviser. The Council can invite experts to its meeting if required.

Q5. CRAR stands for _________

(a) Capital to Risk-Weighted Assets Ratio

(b) Capital to Risk Assets Ratio

(c) Credit Rating-Weighted Assets Ratio

(d) Credit Rating Assets Ratio

(e) None of the given options is true

S5. Ans.(a)

Sol. The Capital Adequacy Ratio (CAR) or Capital-to-Risk weighted Assets Ratio (CRAR) is a measure of a bank’s capital. It is expressed as a percentage of a bank’s risk weighted credit exposures. It is used to protect depositors and promote the stability and efficiency of financial systems around the world.

Q6. Which among the following are long term corporate bonds that are unsecured in nature?

(a) DCF

(b) Debentures

(c) Covenant

(d) CRAs

(e) Cheque

S6. Ans.(b)

Sol. A long-term security yielding a fixed rate of interest, issued by a company and secured against assets are known as debentures.

Q7. An account for which a bank acts as an uninterested third party is termed as?

(a) Savings Account

(b) Current Account

(c) Reserve Account

(d) Escrow Account

(e) Fixed Account

S7. Ans.(d)

Sol. An escrow account is a temporary pass through the account held by a third party during the process of a transaction between two parties. Definition: An escrow account is a temporary pass through the account held by a third party during the process of a transaction between two parties.

Q8. A signed undertaking from one party containing a promise to pay a stated sum to a specified person or a company is known as ________

(a) Power of Attorney

(b) Promissory Note

(c) Purchasing Power Parity

(d) Plastic Notes

(e) None of the given options is true

Q9. Which of the following is defined as the difference between current assets and current liabilities?

(a) Venture Capital

(b) Working Capital

(c) Equitable Mortgage

(d) Loss Assets

(e) Profit and Loss Account

S9. Ans.(b)

Sol. The capital of a business (working capital) which is used in its day-to-day trading operations, calculated as the current assets minus the current liabilities.

Q10. A debt which is irrecoverable and is therefore written off as loss in the accounts of an institution or bank is known as __________

(a) external debt

(b) good debt

(c) bad debt

(d) internal debt

(e) None of the given options is true

S10. Ans.(c)

Sol. The term bad debts usually refers to accounts receivable (or trade accounts receivable) that will not be collected.

Q11. ______________ is basically charged when a person uses a credit card to obtain cash.

(a) Early Repayment Charge

(b) Redemption Fee

(c) Transaction Fee

(d) Cash Advance Fee

(e) None of the given options is true

S11. Ans.(d)

Sol. A cash advance fee is a charge that a credit card issuer charges a customer for accessing the cash credit line on his or her account, either through an ATM, convenience check or at a bank’s teller window.

Q12. Which is an interest-free period that is to be given by a creditor to the debtor?

(a) Fixed Period

(b) Present Period

(c) Grace Period

(d) All of the Above

(e) None of the given options is true

S12. Ans.(c)

Sol. The grace period is the provision in most loan and insurance contracts which allows payment to be received for a certain period of time after the actual due date. During this period no late fees will be charged, and the late payment will not result in default or cancellation of the loan.

Q13. ________ is a cheque rather an amount of cheque, which is above the balance available in the account of the payer.

(a) Travellers cheque

(b) Multicity Cheque

(c) Mutilated Cheque

(d) Over Draft

(e) Bad Debts

S13. Ans.(d)

Sol. An overdraft is an extension of credit from a lending institution when an account reaches zero. An overdraft allows the individual to continue withdrawing money even if the account has no funds in it.

Q14. A cheque for a fixed amount that may be cashed or used in payment abroad after endorsement by the holder’s signature is known as ___________

(a) Travellers cheque

(b) Multicity Cheque

(c) Mutilated Cheque

(d) Crossed Cheque

(e) None of the given options is true

S14. Ans.(a)

Sol. Traveller’s cheque is a medium of exchange that can be used in place of hard currency. Traveller’s cheques are often used by individuals travelling on vacation to foreign countries.

Q15. Which of the following is not a measure of the Risk Management in Banks?

(a) CRR

(b) RTGS

(c) SLR

(d) Deposit Insurance

(e) None of the given options is true

S15. Ans.(b)

Sol. Cash Reserve Ratio (CRR) is the amount of funds that the banks have to keep with the RBI. Statutory liquidity ratio (SLR) is the Indian government term for reserve requirement that the commercial banks in India require to maintain in the form of gold, the government approved securities before providing credit to the customers. Deposit insurance is mandatory, and pays claims from a pool of funds to which every depository institution regularly contributes.

QUIZ-25

Q1. AU Financiers India, a non-banking finance company (NBFC), has converted itself into a small finance bank by the name AU Small Finance Bank. Who is the chairman of board of AU Small Finance Bank?
Answer: Mannil Venugopalan

Q2. Which company has won the prestigious Golden Peacock Award 2017 in the category of Innovative Product/Service for pioneering a cashless township transformation model?
Answer: Gujarat Narmada Valley Fertilizers & Chemicals Ltd (GNFC)

Q3. Which country has successfully launched its first unmanned cargo spacecraft named Tianzhou-1?
Answer: China

Q4. Union Minister of State (IC) for Power, Coal, New & Renewable Energy and Mines _____________ and Indonesia's Minister of Energy and Mineral Resources Ignasius Jonan met for the 1st ‘India Indonesia Energy Forum’, held in Jakarta, Indonesia.
Answer: Piyush Goyal

Q5. Which city has been designated World Book Capital 2017?
Answer: Conakry, Guinea

Q6. Name the player/s who is/are in the winners at the second Golf Industry Association (GIA) Awards 2017.
Answer: SSP Chawrasia, Aditi Ashok and Ali Sher

Q7. The National Health Mission (NHM) in which of the Indian state has launched a mobile-based application named 'Kilkari' to create awareness among pregnant women.
Answer: Haryana

Q8. Name the Veteran actress who has received the lifetime achievement award at the 80th Bengal Film Journalists' Association (BFJA) awards 2017.
Answer: Moushumi Chatterjee

Q9. China and Iran have signed the first agreement on the reconfiguration of Iran's Arak reactor. The deal was concluded between the Atomic Energy Organization of Iran (AEOI) and a Chinese company at the official ceremony in which city?
Answer: Vienna

Q10. In a bid to expand the green cover, the Indian Railways has recently signed a Memorandum of Understanding (MoU) with which state government, under which trees will be planted on the land adjacent to the railway tracks in the state.
Answer: Maharashtra

Q11. Name the Renowned Director and actor who has won the Dadasaheb Phalke award for the year 2016 for his outstanding contribution to the film industry.
Answer: Kasinathuni Viswanath

Q12. Real estate developers’ body CREDAI (Confederation of Real Estate Developers' Associations of India) have signed a memorandum of understanding with which of the following lender to jointly conduct various initiatives towards development of the realty sector?
Answer: State Bank of India

Q13. India has replaced which country as world's number two importer of Liquefied Petroleum Gas (LPG)?
Answer: Japan

Q14. An Indian shot putter has recently clinched gold in the first leg of the Asian Grand Prix Athletics Meet. The event was held in ___________.
Answer: China

Q15. What is the global theme for World Malaria Day 2016 was ____________.
Answer: End Malaria for Good

Daily GK Update 24th June 2017

1. PM Modi leaves for Portugal on the first leg of his 3-nation tour

i. Prime Minister Narendra Modi today embarked on a three-nation visit. In the first leg of his tour, he will reach Portuguese capital, Lisbon. After Portugal, the Prime Minister will depart for the US capital, Washington DC.

ii. During his two-day US visit, the Prime Minister will meet its President, Donald Trump. This will be the first meeting between the two leaders. In the last leg of his tour, Mr. Modi will visit The Netherlands for bilateral talks with his counterpart, Mr. Mark Rutte.

Static Takeaways-

• Lisbon is the capital of Portugal.
• The Prime Minister of Portugal is Antonio Costa.
• Washington DC is the capital of the USA.
• Amsterdam is the capital of The Netherlands
• The Netherlands is the 6th largest trading partner of India in the EU and 5th largest investment partner globally.

2. RBI widens scope of Banking Ombudsman Scheme

i. The central bank has extended the scope of Banking Ombudsman Scheme. As per RBI, under the amended scheme, a customer would also be able to lodge a complaint against the bank for its non-adherence to RBI instructions with regard to mobile banking/ electronic banking services in India.

ii. As per the amendment, the pecuniary jurisdiction of the Banking Ombudsman to pass an award has been doubled to 20 lakh rupees. 

Banking Takeaways-

• The Reserve Bank of India was established on April 1, 1935, in accordance with the provisions of the Reserve Bank of India Act, 1934.
• RBI was nationalized in 1949.
• Urjit Patel is the 24th Governor of RBI.
• Banking Ombudsman is a quasi-judicial authority functioning under the Banking Ombudsman Scheme, 2006.

3. EPFO, HUDCO inked pact for housing subsidy under PMAY

i. Employees Provident Fund Organisation (EPFO) has signed an MoU with the Housing and Urban Development Corporation (HUDCO) to enable members of its housing scheme to avail subsidy and interest subvention under the Pradhan Mantri Awas Yojana (PMAY).

ii. Under the housing scheme, the EPFO allows its subscribers for withdrawing up to 90 per cent of their EPF accumulations to buy homes. The MoU was signed in New Delhi.
iii. Now, EPFO members can avail interest subsidy upto two lakh twenty thousand rupees in Credit Linked Subsidy Scheme through HUDCO and National Housing Bank for those members whose annual income is less that the amount specified in Pradhan Mantri Awas Yojna.

Important Takeaways-

• Union Labour and Employment Minister is Bandaru Dattatreya.

4. Bengal's Kanyashree initiative wins United Nations Public Service Award

i. The West Bengal Government's Kanyashree Prakalpa was awarded the first prize in United Nations Public Service Award for Asia Pacific. Out of 552 initiatives from 62 different countries, West Bengal Government's initiative was chosen the best.

ii. The award was presented at The Hague, Netherlands. Kanyashree Prakalpa is a targeted conditional cash transfer scheme aimed at retaining girls in schools and other educational and skill development institutions and preventing child marriage.

Static Takeaways-

• Netaji Subhas Chandra Bose International Airport is in Kolkata, West Bengal
• Sunderban is the famous Tiger Reserve of West Bengal.
• Motijhil Lake is in West Bengal.

5. India, Russia agree to roadmap for development of defense co-operation

i. India and Russia have agreed to a roadmap for the development of bilateral defense cooperation. The roadmap includes specific activities to be concluded by both sides, and aims to enhance cooperation in the field of political and military dialogue, exercises, exchange of visits, military cooperation and training of military personnel.

ii. The agreement was reached at the 17th meeting of the India-Russia Inter-Governmental Commission on Military-Technical Cooperation held in Moscow. The meeting took place was held under the Co-Chairmanship of the Defence Minister Arun Jaitley and the Defence Minister of Russia Sergei Shoigu.

Important Takeaways-

• The Capital of Russia is Moscow and its Currency is Russian ruble. 
• The President of Russia is Vladimir Putin.

6. MeitY launches Web Portal for smooth GST implementation

i. In order to ensure smooth GST implementation from 1st July, the Ministry of Electronics and Information Technology has launched a dedicated Webpage for facilitating taxpayers with regard to addressing issues related to Information Technology Services and Electronics goods.

ii. The webpage can be accessed through Ministry’s Web Portal www.meity.gov.in. Individuals, Companies, and Entrepreneurs in IT and Electronics sector can visit the webpage for sector-specific information. It also enables filing of grievances in relation to the implementation of GST.

Important Takeaway from Above News-

• Shri Ravi Shankar Prasad is the Cabinet Minister of Ministry of Electronics and Information Technology (Meity).
• Shri P.P. Chaudhary is the Minister of State of Meity.