[email protected] | BANK | SSC | RAILWAY | JAIIB | CAIIB | PARA13.2 | GIPS 1

Contact@Ambitiousbaba.Com | BANK | SSC | RAILWAY | JAIIB | CAIIB | PARA13.2 | GIPS 1

ambitiousbaba.com Online Test Series

ambitiousbaba.com Online Test Series

Index No. of Chapter Chapter Name Topic 1 Banking & Financial Awareness Topic 2 Banking, Financial & Economics (May to October)

Topic 3 KYC & AML

Topic 4 Preventive vigilance Topic 5 Legal Issue Topic 6 GK/Static Download PDF Click Here ………

Topic 1: Financial & Banking Awareness (Static Part) Number of Chapter Topics Name Chapter 1 RBI, Subsidiaries of RBI, NABARD, NHB, ECGC

Chapter 2 Banks in India Commercial Bank, Exim Bank of India, Payment Bank, Co-operative Banks, Regional Rural Banks, Small Finance Banks Chapter 3 Banking Ombudsman, National Income Chapter 4 Money Market, Capital Market Chapter 5 Inflation Chapter 6 Negotiable Instrument, Mutual Fund, Money Laundering Chapter 7 Types of Cheque & Types of Account Chapter 8 Types of Payment Cards, Fund transfer service

Chapter 9 Basel I, II and III Chapter 10 NPA & SARFAESI Act, 2002

ambitiousbaba.com Online Test Series

Chapter 11 LIBOR & MIBOR, SWIFT Codes for banks Chapter 12 CIBIL, Priority Sector lending & Banks Merger Chapter 13 Important Terms

Click here to Get SBI CBO Online Test Series Financial Market

Financial system Financial system a network of financial institutions (COMMERCIAL BANKS, BUILDING SOCIETIES, etc.) and markets (MONEY MARKET, STOCK MARKET), dealing in a variety of financial instruments BANK DEPOSITS, STOCKS and SHARES, etc.), which are engaged in money transmission activities and the provision of LOAN and CREDIT facilities. The financial institutions and markets occupy a key position in the economy as intermediaries in channelling savings and other funds to borrowers and investors. In doing this one of their main roles is to reconcile the different requirements of savers and borrowers, thereby facilitating a higher level of saving and investment in the economy than would otherwise be the case. Financial System

Insurance and Pension Regulators Central Banking Authority Capital Market Regulatory Authority

Central Bank (RBI) Capital Market (SEBI) Insurance and Pension Regulators (IRDA)

ambitiousbaba.com Online Test Series

1)Monetary Control 1)Equity market and debt 1)Regulatory framework 2)Supervision Over market supervision and including rules and Commercial Bank control regulations for running Primary Dealers 2)Supervision over insurance business Financial Institutions Stoke exchange 2)Supervising all insurance Cooperative Banks Brokers companies both in general Clearing and Settlement Equity and Debt raiser and life insurance business System Investment bankers 3)Regulating pricing, 3)Management of (Merchant Bankers) investments and cost Government debt Foreign institutional structure of insurance 4) Banker to Government investors companies 5) Regulating monetary Custodians 4)Regulation insurance instruments (CRR, SLR, Depositories brokers including agencies BANK RATE, REPO RATE, Mutual Funds both individual and Bank MSF) Listed companies PENSIONS Service providers to capital 1)Framing rules for pension Markets like registrars funds 2)Regulating all pension funds

Chapter 1: RBI, Subsidiaries of RBI, NABARD, NHB, ECGC Reserve Bank of India (RBI) History of RBI • The Reserve Bank of India was established following the Reserve Bank of India Act of 1934. • Though privately owned initially, it was nationalised in 1949 and since then fully owned by Government of India (GoI). • It commenced its operations on 1 April 1935 in accordance with the Reserve Bank of India Act, 1934. • The Hilton-Young Commission, therefore ended by setting-up of a central bank — called the Reserve Bank of India Management • One Governor (5years Term) • Four Deputy Governors (5years Term) • Fifteen Directors Branches and support bodies • RBI Headquarters in Mumbai • The RBI has four zonal offices at Chennai, Delhi, Kolkata and Mumbai. • It has 21 regional offices and 11 sub-offices throughout India. Functions of RBI • The central bank of any country executes many functions such as overseeing monetary policy, issuing currency, managing foreign exchange, working as a bank

ambitiousbaba.com Online Test Series

for government and as a banker of scheduled commercial banks. It also works for overall economic growth of the country. Subsidiaries of RBI Fully owned:

• Deposit Insurance and Credit Guarantee Corporation of India (DICGC), • Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL) • Reserve Bank Information Technology Private Limited (ReBIT) • Indian Financial Technology and Allied Services (IFTAS) Note: NABARD and NHB further. Both were the subsidiaries of RBI before 26 Feb 2019. About BRBNMPL • Bharatiya Reserve Bank Note Mudran Private Limited • Prints banknotes for Reserve Bank of India (RBI) • Established in 1995 to address the demand for banknotes • It has two presses in Mysore and Salboni • Mysore -The machinery at Mysore Site has been supplied by Switzerland. • Salboni.- The machinery at Salboni has been supplied by Japan. About DICGC • DICGC (Deposit Insurance And Credit Guarantee Corporation ) • Established under the DICGC act 1961, on 15th July 1978 • All commercial bank including branches of a foreign bank in India, local area bank and RRB are insured by DICGC • NBFC and primary cooperative society are not insured by RBI • DICGC insures all types of account i.e. (Current, fixed, saving, recurring ) • The maximum amount insured by DICGC is 5 lakh National Bank for Agriculture and Rural Development (NABARD) NABARD is a development bank focussing primarily on the rural sector of the country. It is the apex banking institution to provide finance for Agriculture and rural development. • Headquartered- Mumbai • Chairman: Govinda Rajulu Chintala • NABARD was established on the recommendations of B.Sivaraman Committee, (by Act 61, 1981 of Parliament) on 12 July 1982 to implement the National Bank for Agriculture and Rural Development Act 1981. • The initial corpus of NABARD was Rs.100 crores. Consequent to the revision in the composition of share capital between Government of India and RBI, the paid up capital as on 31 May 2017, stood at Rs.6,700 crore with Government of India holding Rs.6,700 crore (100% share). The authorized share capital is Rs.30,000 crore National Housing Bank (NHB) • A Government of India owned entity • Founded: 9 July 1988 (under the National Housing Bank Act, 1987) • Headquarters: New Delhi, India Aims • To promote a sound, healthy, viable and cost effective housing finance system to cater to all segments of the population and to integrate the housing finance system with the overall financial system.

ambitiousbaba.com Online Test Series

• To promote a network of dedicated housing finance institutions to adequately serve various regions and different income groups. • To augment resources for the sector and channelise them for housing. • To make housing credit more affordable. ECGC (Export Credit Guarantee Corporation of India) • Type: State-owned enterprise Public • Industry: Insurance • Founded: 30 July 1957 • Headquarters: Mumbai, Maharashtra • It was transformed into Export Credit and Guarantee Corporation Limited (ECGC) in 1964 and to Export Credit Guarantee Corporation of India in 1983. Functions • Provides a range of credit risk insurance covers to exporters against loss in export of goods and services as well. • Offers guarantees to banks and financial institutions to enable exporters to obtain better facilities from them. • Provides Overseas Investment Insurance to Indian companies investing in joint ventures abroad in the form of equity or loan and advances.

Chapter 2: Banks in India Commercial Bank, Exim Bank of India, Payment Bank, Co-operative Banks, Regional Rural Banks, Small Finance Banks Commercial Bank Functions of Commercial Bank A commercial bank is a type of bank that provides services such as accepting deposits, making business loans, and offering basic investment products that is operated as a business for profit.

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

ambitiousbaba.com Online Test Series

provide service to the public. These include State Bank of India and its associates, Dena bank, Punjab National Bank, Canara 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 Citi Bank, HSBC Ltd. Non-Scheduled Banks– The banks which are not included in the list of the scheduled banks are called the Non- Scheduled Banks. At present there are only 3 such banks in the country. Non- Scheduled Banks have to follow CRR conditions. These banks can have CRR fund with themselves as no compulsion has been made by the RBI to deposit it in the RBI. Non- Scheduled Banks are also not eligible for having loans from the RBI for day to day activities but under the emergency conditions RBI can grant loan to them. EXIM Bank Export–Import Bank of India is a finance institution in India, established in 1982 under Export-Import Bank of India Act 1981. Payments Bank • On 23 September 2013, Committee on Comprehensive Financial Services for Small Businesses and Low Income Households, headed by Nachiket Mor, was formed by the RBI. On 7 January 2014, the Nachiket Mor committee submitted its final report. Among its various recommendations, it recommended the formation of a new category of bank called payments bank. On 17 July 2014, the RBI released the draft guidelines for payment banks, seeking comments for interested entities and the general public. On 27 November, RBI released the final guidelines for payment banks. • In February 2015, RBI released the list of entities which had applied for a payments bank licence. There were 41 applicants. It was also announced that an external advisory committee (EAC) headed by Nachiket Mor would evaluate the licence applications. On 28 February 2015. • Payments banks is a new model of banks conceptualised by the Reserve Bank of India (RBI). These banks can accept a restricted deposit, which is currently limited to ₹100,000 per customer and may be increased further. These banks cannot issue loans and credit cards. Both current account and savings accounts can be operated by such banks. Payments banks can issue services like ATM cards, debit cards, net- banking and mobile-banking. Bharti Airtel set up India’s first live payments bank. • The RBI will grant full licenses under Section 22 of the Banking Regulation Act, 1949, after it is satisfied that the conditions have been fulfilled. • The minimum capital requirement is 100 crore. • Foreign share holding will be allowed in these banks as per the rules for FDI in private banks in India. • For the first five years, the stake of the promoter should remain at least 40%.

ambitiousbaba.com Online Test Series

Cooperative banking • Cooperative banking is retail and commercial banking organized on a cooperative basis. Cooperative banking institutions take deposits and lend money in most parts of the world. Note: Co-operative banks have more than one head like the RBI, the Registrar of Co- operative Societies (RCS) and NABARD. Small finance bank They are established as public limited companies in the private sector under the Companies Act, 1956. They are governed by the provisions of Reserve Bank of India Act, 1934, Banking Regulation Act, 1949 and other relevant statutes.

Important Point i)Existing non-banking financial companies (NBFC), microfinance institutions (MFI) and local area banks (LAB) can apply to become small finance banks. ii) They can be promoted either by individuals, corporate, trusts or societies. iii) They are established as public limited companies in the private sector under the Companies Act, 1956. iv) They are governed by the provisions of Reserve Bank of India Act, 1934, Banking Regulation Act, 1949 and other relevant statutes. v) The banks will not be restricted to any region. vi) They were set up with the twin objectives of providing an institutional mechanism for promoting rural and semi urban savings and for providing credit for viable economic activities in the local areas. vii) 75% of its net credits should be in priority sector lending and 50% of the loans in its portfolio must in ₹25 lakh (US$38,000) range. viii) The firms must have a capital of at least ₹100 crore (US$15 million). ix) The promoters should have 10 years’ experience in banking and finance. The promoters stake in the paid-up equity capital will be at least 40% initially but must be brought down to 26% in 12 years. Joint ventures are not permitted. Foreign share holding will be allowed in these banks as per the rules for FDI in private banks in India. x) At net worth of ₹500 crore (US$77 million), listing will be mandatory within three years. Small finance banks having net worth of below ₹500 crore (US$77 million) could also get their shares listed voluntarily. xi) They can accept any deposit (savings, current, fixed deposits, recurring deposits) like commercial banks. xii) Unlike payment banks, small finance banks will be allowed to lend money also. xiii) For the initial 3 years, prior approval will be required for branch expansion. xiv) To give the feel of local bank, their area of operation will be restricted. xv) They are not allowed to lend the deposited money to big businesses or industries.

Chapter 3: Banking Ombudsman, National Income

ambitiousbaba.com Online Test Series

Banking Ombudsman Important Point • The Banking Ombudsman Scheme was introduced under Section 35 A of the Banking Regulation Act, 1949 by RBI with effect from 1995. • The Banking Ombudsman Scheme was first introduced in India in 1995 and it was revised in 2002 • Current Banking Ombudsman Scheme introduced in 2006. • From 2002 until 2006, around 36,000 complaints have been dealt by the Banking Ombudsmen. • Banking Ombudsman is appointed by Reserve Bank of India. • There are 21 regional offices of Banking Ombudsmen in India. • Banking Ombudsman is a senior official appointed by RBI • All Scheduled Commercial Banks, Regional Rural Banks and Scheduled Primary Co- operative Banks are covered under the Banking Ombudsman Scheme. Type of complaints resolved by banking ombudsman • Non-payment or inordinate delay in the payment or collection of cheques, drafts, bills, etc.; • Non-acceptance, without sufficient cause, of small denomination notes tendered for any purpose, and for charging of commission for this service; • Non-acceptance, without sufficient cause, of coins tendered and for charging of commission for this service; • Non-payment or delay in payment of inward remittances ; • Failure to issue or delay in issue, of drafts, pay orders or bankers’ cheques; • Non-adherence to prescribed working hours; • Failure to honour guarantee or letter of credit commitments; National Income

ambitiousbaba.com Online Test Series

ambitiousbaba.com Online Test Series

Click here to Buy SBI CBO 2020 Online Test Series Chapter 4: Money Market, Capital Market Financial markets • Financial markets in every economy have two separate segments. • Short-term funds are for a period of 364 days (Money market). • Long term funds are for above 364 days (Capital Market). Note : Chakravarthy committee (1985) for first time underlined the need of an organised money market and Vahul Committee (1987) laid the blueprint for that. Money Market Instruments of Money Market • Treasury Bills • Commercial Paper • Commercial Bill • Call Money • Certificate of Deposits • Cash Management Bills (CMBs) Treasury Bills • Issued by RBI on behalf of govt. • Govt uses them to meet their short-term liquidity crunch. • T-bills are sovereign zero risk instruments. • At present, 3 types of T-bills are there: 91-day, 182-day, 364-day. • State govt. cannot issue T-bills. • They are issued by Market Stabilization Scheme (MSS). • Available for a minimum amount of Rs. 25000 or in multiples of that.

ambitiousbaba.com Online Test Series

Call Money • Interbank market where funds are borrowed and lent for 1 day or less. • The money that is lent for one day in this market is known as "Call Money", and if it exceeds one day (but less than 15 days) it is referred to as "Notice Money". • Duration varying from 1 to 14 days, it is called Call money Market. • Mutual funds, scheduled commercial & cooperative banks act as both borrowers and lenders. • LIC, GIC, NABARD, IDBI act only as lenders.

Certificate of Deposit (CDs) • Issued by scheduled commercial banks and other financial institutions. • RRBs and local area banks can not issue CDs. • Issued at a discount to face value, the discount rate is negotiated between issuer and investor. • Minimum amount to be Rs. 1 lac. • CDs issued by banks have a maturity period: 15 days to 1 year. • CDs issued by selected FIs have maturity period: 1 year to 3 years. • Can be issued to individuals or firms. Commercial Paper (CP) • These are unsecured promissory* notes issued by large corporates, primary dealers, satellite dealers and all India FIs. • Maturity period is between 7 days up to 1 year from date of issue. • Minimum amount to be invested is Rs. 5 lacs or multiples of that. • CPs need to have a credit rating from a credit rating agency. Commercial Bills (CBs) • Negotiable instruments which are issued by all India FIs, NBFCs, SCBs, Merchant banks & Mutual funds. • Drawn by seller on the buyer (buyer gives seller), hence also called trade bills. Cash Management Bills (CMBs) • It's a comparatively new short-term instrument issued by RBI on behalf of Govt. • Issued to meet temporary mismatches in cash flow of Govt. • They resemble T-bills in character but are issued for less than 91 days only. Capital Market

ambitiousbaba.com Online Test Series

Capital Market 2 types • Primary Market: Otherwise called as New Issues Market, it is the market for the trading of new securities, for the first time. It embraces both initial public offering and further public offering. In the primary market, the mobilisation of funds takes place through prospectus, right issue and private placement of securities. • Secondary Market: Secondary Market can be described as the market for old securities, in the sense that securities which are previously issued in the primary market are traded here. The trading takes place between investors, that follows the original issue in the primary market. It covers both stock exchange and over-the counter market. Chapter 5: Inflation Inflation Inflation is a quantitative measure of the rate at which the average price level of a basket of selected goods and services in an economy increases over a period of time. Simply, inflation is rise in the prices of goods and services caused by the devaluation of currency. There are three major types of inflation • Demand-pull inflation – This increase in liquidity and demand for consumer goods results in an increase in demand for products. As a result of the increased demand, companies will raise prices to the level the consumer will bear in order to balance supply and demand. • Cost-push inflation- Cost-push inflation, also called “supply shock inflation,” is caused by a drop in aggregate supply (potential output). This may be due to natural disasters, or increased prices of inputs, increases in corporate taxes, rising wages. • Built-in inflation – Built-in inflation is induced by adaptive expectations, and is often linked to the “price/wage spiral”. It involves workers trying to keep their wages up with prices (above the rate of inflation), and firms passing these higher labor costs on to their customers as higher prices, leading to a ‘vicious circle’. Deflation • Deflation is a decrease in the general price level of goods and services. Deflation occurs when the inflation rate falls below 0% (a negative inflation rate).

ambitiousbaba.com Online Test Series

Deflation is the exact opposite of inflation. Inflation reduces the value of currency over time, but deflation increases it. This allows one to buy more goods and services than before with the same amount of currency. Stagflation • Stagflation is a condition of slow economic growth and relatively high unemployment, or economic stagnation, accompanied by rising prices, or inflation. It can also be defined as inflation and a decline in gross domestic product (GDP). Galloping Inflation • Galloping inflation also called as hopping inflation, jumping inflation, and running or runaway inflation is basically a very high inflation, which can be in the range of ‘double-digit’ or ‘triple-digit’ (for example: 50 % or 200% in a year). Causes of Inflation Factors on Demand Sides – • Increase in money supply • Increase in Export • Increase in disposable income • Deficit financing • Foreign exchange reserves Factors on Supply Side – • Rise in administered prices • Erratic agriculture growth • Agricultural price policy • Inadequate industrial growth Measurement of Inflation

• The Consumer Price Index (CPI) • Producer Price Index (PPI) Measures of Inflation Monetary policy • Credit Control • Demonetization of Currency • Issue of New Currency Fiscal policy • Reduction in Unnecessary Expenditure • Increase in Taxes • Increase in Savings • Surplus Budgets • Public Debt Other Measures • To Increase Production • Rational Wage Policy

ambitiousbaba.com Online Test Series

• Price Control

Chapter 6: Negotiable Instrument, Mutual Fund, Money Laundering What is Negotiable Instrument A negotiable instrument is a document guaranteeing the payment of a specific amount of money, either on demand, or at a set time, with the payer usually named on the document. Types of Negotiable Instruments • Promissory Note • Bills of Exchange • Promissory note • Demand Draft • Letter of credit • Cheque Bill of Exchange A bill of exchange is a written order used primarily in international trade that binds one party to pay a fixed sum of money to another party on demand or at a predetermined date. Features of Bill of Exchange: • Bills of exchange must be in writing. • Bills of exchange are not a request to pay and an order to pay. • The order must be signed by the drawer, i.e. the maker. • The order must be for the payment of money only. • The money payable not vague and must be certain. • The bills of exchange must be payable to a certain person mentioned in the instrument or to his order or to the bearer of the document. Promissory note Promissory note may be a negotiable instrument if it is an unconditional promise in writing made by one person to another, signed by the maker, engaging to pay on demand to the payee, or at fixed or determinable future time, certain in money, to order or to bearer. Cheque A Cheque is a document which orders a bank to pay a particular amount of money from a person’s account to another individual’s or company’s account in whose name the cheque has been made or issued. The person writing the cheque, known as the drawer. Demand Draft Demand Draft is a negotiable instrument used for the transfer of money from one place to another. It making payment to the bank. Demand Draft can’t be dishonored as the amount is paid beforehand. Demand Draft is issued by a bank. The amount in cash not exceeding Rs 50,000. In case of amount exceeding Rs 50,000, the payment is to be made by cheque along with giving the PAN No. It can be cleared at any branch of the same bank. The payment of a draft cannot be stopped. Letter of credit

ambitiousbaba.com Online Test Series

A letter of credit (LC), also known as a documentary credit or bankers commercial credit, is a payment mechanism used in international trade to provide an economic guarantee from a creditworthy bank to an exporter of goods. Maker/ Drawer The maker of a promissory note or cheque, the drawer of a bill of exchange until acceptance, and the acceptor are, in the absence of a contract to the contrary, respectively liable thereon as principal debtors, and the other parties thereto are liable thereon as sureties for the maker, drawer or acceptor, as the case may be. Drawee Drawee is a legal and banking term used to describe the party that has been directed by the depositor to pay a certain sum of money to the person presenting the check or draft. Payee A payee is the party in an exchange who receives payment. A payee is paid by cash, check or other transfer medium by a payer. Holder The Holder is either the payee or some other person to whom he may have endorsed the promissory note or bill of exchange or cheque. A person cannot be a holder unless he is the payee or indorsee there of. Money Laundering Money laundering is the process of making large amounts of money generated by a criminal activity, such as drug trafficking or terrorist funding, appear to have come from a legitimate source. The money from the criminal activity is considered dirty, and the process “launders” it to make it look clean. Money laundering is itself a crime. Money Laundering on International Basis On international Basis Financial action task force was established (FATF) to combat with money laundering cases and terrorism financing. • Established in 1989 • Headquarters – Geneva • Total member countries – 36 Introduction of Mutual Fund A mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities. These investors may be retail or institutional in nature. Chapter 7: Types of Cheque & Types of Account Cheque A Cheque is a document which orders a bank to pay a particular amount of money from a person’s account to another individual’s or company’s account in whose name the cheque has been made or issued. The cheque is utilised to make safe, secure and convenient payments. It serves as a secure option since hard cash is not involved during the transfer process; hence the fear of loss or theft is minimised. Number of Parties involved with a Cheque Under the cheque mode of fund payment, there are three parties which are involved for on- track movement of money through a written paper source. a) Drawer or Maker: He/she is the customer or account holder who issues the cheque.

ambitiousbaba.com Online Test Series

b) Drawee: It is basically the bank on which the cheque is drawn and is called the “Drawee”. Always remember that a cheque is always drawn on a particular banker. c) Payee: The individual who is named in the cheque for getting the payment is known as the “Payee”. Interestingly, the drawer and the payee can be the same individual in a particular case. Types of Cheque Bearer Cheque: Bearer cheques are the cheques which withdrawn to the cheque's owner. These types of cheques normally used for a cash transaction. Order Cheque: Order cheques are the cheques which are withdrawn for the payee(the person whose name is written on the cheque). Before making payment to that payee,cross- checks check the identity of the payee. Crossed Cheque: On the Crossed cheques, two lines are made on the top right of the cheque. Amount mentioned on the cheque is only transferred to the bank account of the payee. No cash payment is made. Account Payee Cheque: On the Account payee cheque, two lines are made with the word "account payee" on the top right of the cheque. Amount mentioned on the cheque is only transferred to the bank account of the payee whose name is mentioned on the cheque. No cash payment is made. This cheque can not be endorsed to the third party. Stale Cheque: In India, if a cheque is not presented to the bank within 3 months from the date written on the cheque is known as a stale cheque. Post Dated Cheque: If any cheque issued by a holder to the payee for the upcoming withdrawn date, then that type of cheques are called post-dated cheque. Ante Dated Cheque: If date entered on the cheque is prior to the current date, that type of cheque is known as Ante-dated cheque. Demand Draft • Demand Draft is a negotiable instrument used for the transfer of money from one place to another. It making payment to the bank. Demand Draft can’t be dishonoured as the amount is paid beforehand. • Demand Draft is issued by a bank. The amount in cash not exceeding Rs. 50,000. In case of amount exceeding Rs. 50,000, the payment is to be made by cheque along with giving the PAN No. It can be cleared at any branch of the same bank. The payment of a draft cannot be stopped. Letter of credit (LC) • A letter of credit (LC), also known as a documentary credit or bankers commercial credit, is a payment mechanism used in international trade to provide an economic guarantee from a creditworthy bank to an exporter of goods. Bank Account A bank account is a financial account maintained by a bank or other financial institution in which the financial transactions between the bank and a customer are recorded.

ambitiousbaba.com Online Test Series

Savings Account A savings account is a deposit account held at a retail bank that pays interest. Any individual either single or jointly can open a savings account. Most of the salaried persons, pensioners and students use Savings Account. Current Account The current account is a country’s trade balance plus net income and direct payments. The trade balance is a country’s imports and exports of goods and services. The current account also measures international transfers of capital. Basic Savings Bank Deposit Accounts (BSBDA) • 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 • 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. Recurring Deposit Account • 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 • Recurring Deposit schemes allow customers with an opportunity to build up their savings through regular monthly deposits of fixed sum over a fixed period of time. Minimum Period of RD is 6 months and maximum is 10 years. • There are no limits for number of transactions or the amount of transactions in a day. • There is no interest paid on amount held in the account, banks charges certain service charges, on such accounts. Fixed Deposit Account

ambitiousbaba.com Online Test Series

• A fixed deposit (FD) is a financial instrument provided by banks or NBFCs which provides investors a higher rate of interest than a regular savings account, until the given maturity date. It may or may not require the creation of a separate account. It is known as a term deposit or time deposit. Important Feature • Customers can avail loans against FDs up to 80 to 90 percent of the value of deposits. The rate of interest on the loan could be 1 to 2 percent over the rate offered on the deposit. • Residents of India can open these accounts for a minimum of 3 months. • Investing in a fixed deposit earns you a higher interest rate than depositing your money in a saving account. • The tenure of an FD can vary from 7, 15 or 45 days to 1.5 years and The longest permissible term for FDs is 10 years. Demat Account • The full form of Demat Account is Dematerialized account. A Demat Account is an account that allows investors to hold their shares in an electronic form. Demat account functions like a bank account, where you hold your money and respective entries are done in bank passbook. CASA Account • CASA stands for current and savings account ratio. CASA ratio of a bank is the ratio of deposits in current and saving accounts to total deposits. RAFA Account • RAFA stands for Recurring Deposit Account Fixed Deposit Account. The RAFA ratio shows how much deposit a bank has in the form of Recurring and fixed deposits. NRI ACCOUNTS • NRO ( Non-Resident Ordinary Rupees) Account • NRE ( Non-Resident External Rupees) Account • FCNR ( Foreign Currency Non-Resident ) Account NRO ( Non-Resident Ordinary Rupees) Account Different Between NRE and NRO account Basis NRE Account NRO Account Acronym Non Resident External Non Resident Ordinary Account Account Meaning It is an account of an NRI to It is an account of an NRI to manage the transfer foreign earnings to income earned in India India Taxability Interest earned is tax free Interest earned is taxable Repatriability Can repatriate Can repatriate the interest amount, the principle amount can be repatriated within the set limits Joint Account Can be opened by two NRIs Can be opened by an NRI along with an Indian citizen or another NRI Deposits and Can deposit in foreign Can deposit in foreign as well as Indian Withdrawals currency, and withdraw in currency, and withdraw in Indian Indian currency currency

ambitiousbaba.com Online Test Series

Exchange Rate Prone to risk Not prone to risk Risk

Chapter 8: Types of Payment Cards, Fund transfer service Plastic money is a term used to represent the hard plastic cards used in day to day life in place of actual banknotes. They come in several forms such as debit cards, credit cards, store cards and pre-paid cash cards. The plastic cards began to be used widely after 1970 when the specific standards were set for a magnetic strip. In 1981, the concept of Credit cards was introduced in India and was on the verge of an exceptional boom.

Today the domestic card industry is applied with different types of cards from gold, silver, global, smart to secure, co-branded credit cards, etc. the list is endless. There is enormous growth potential in the domestic card industry.

Types Of Plastic Money

Charge Card: A charge card has similar features of credit cards. However, after using a charge card, it is necessary to pay the whole amount of bill till the due date. If the person defaults to pay the amount of the charge card, then he has to pay the late payment charges.

Visa & MasterCard: Visa & MasterCard are international non-profit organizations. They are dedicated to promoting the growth of the business of cards across the globe. They have designed a wide network of merchant institutions by keeping in mind that the customers might use their credit cards to make several transactions worldwide.

Debit Cards: The debit card is an encoded plastic card which is issued by banks and has replaced with the cheques. It allows the customers to pay in exchange for goods and services without carrying cash. It is a multipurpose card, as it can be used as an ATM to withdraw the money and check the balance of the bank account. It is issued by bank free of cost with the savings or current account. It is one of the best online-payment tools where the amount of purchase is immediately subtracted from the account of the customer and credited to the merchant’s account. It has overcome the delay in the payment process.

There are presently two ways in which debit cards transactions are processed: i)Online debit (also known as a PIN) ii)Offline debit (also known as signature debit ATM Cards: These cards are typically used at ATMs to withdraw money, transfer funds and make deposits. ATM cards are used by inserting the card into a machine and enter a PIN or personal number for security purpose. The system checks the account for sufficient funds before allowing any transaction. Fund transfer services • National Electronic Funds Transfer (NEFT) • Real-time gross settlement (RTGS) • Immediate Payment Service (IMPS)

ambitiousbaba.com Online Test Series

Chapter 9: Basel I, II and III Basel Accords The Basel Accords refer to the banking supervision Accords (recommendations on banking regulations)—Basel I, Basel II and Basel III—issued by the Basel Committee on Banking Supervision (BCBS). They are called the Basel Accords as the BCBS maintains its secretariat at the Bank for International Settlements in Basel, Switzerland and the committee normally meets there. The Basel Accords is a set of recommendations for regulations in the banking industry.

Basel I Basel I is the round of deliberations by central bankers from around the world, and in 1988, the Basel Committee on Banking Supervision (BCBS) in Basel, Switzerland, published a set of minimum capital requirements for banks. This is also known as the 1988 Basel Accord, and was enforced by law in the Group of Ten (G-10) countries in 1992. Basel I norms set a minimum capital requirements for banks. It defined capital requirement and structure of risk weights for banks. The goal was to minimize credit risk i.e. the defaults on a credit or loan when the borrower is unable to pay back to the bank. Basel-II The Basel II Accord was published initially in June 2004 and was intended to amend international banking standards that controlled how much capital banks were required to hold to guard against the financial and operational risks banks face. These regulations aimed to ensure that the more significant the risk a bank is exposed to, the greater the amount of capital the bank needs to hold to safeguard its solvency and overall economic stability.

ambitiousbaba.com Online Test Series

Basel II was implemented in the years prior to 2008, Basel II uses a “three pillars” concept – (1) minimum capital requirements (addressing risk), (2) supervisory review and (3) market discipline.

Basel-III

Basel III (or the Third Basel Accord or Basel Standards) is a global, voluntary regulatory framework on bank capital adequacy, stress testing, and market liquidity risk. This third installment of the Basel Accords (see Basel I, Basel II) was developed in response to the deficiencies in financial regulation revealed by the financial crisis of 2007–08. It is intended to strengthen bank capital requirements by increasing bank liquidity and decreasing bank leverage. Basel III was agreed upon by the members of the Basel Committee on Banking Supervision in November 2010, and was scheduled to be introduced from 2013 until 2015; however, implementation was extended repeatedly to 31 March 2019.

ambitiousbaba.com Online Test Series

Chapter 10: NPA & SARFAESI Act, 2002 What is NPA NPA Meaning (Non-performing Assets) - All those assets which don't generate regular income are known as NPA. Types of assets • Standard assets :- Assets which are generating regular income to the bank • Sub-standard assets :- An asset which is overdue for a period of more than 90 days but less than 12 months • Doubtful assets :- An asset which is overdue for a period of more than 12 months. • Loss assets :- Assets which are doubtful and considered as non-recoverable by bank, internal or external auditor or central bank inspectors • Sub-standard assets, Doubtful assets and Loss assets are NPA. SARFAESI Act, 2002 Narasimham Committee I and II and Andhyarujina Committee was constituted by the Central Government for the purpose of examining banking sector reforms have considered the need for changes in the legal system in respect of these areas. Amongst the other committees, these Committees have made suggestions to form new legislation for securitization and empowering banks and financial institutions to gain possession of the securities and to sell them without any intervention of the court here. Applicability Of SARFAESI Act, 2002 The amendment to this Act is “an act to regulate securitization and reconstruction of financial assets and enforcement of security interest and to provide for a central database of security interests created on property rights, and for matters connected therewith or incidental thereto.” The Act deals with the following:

ambitiousbaba.com Online Test Series

• Registration and regulation of Asset Reconstruction Companies (ARCs) by the Reserve Bank of India • Facilitating securitization of financial assets of banks and financial institutions with or without the benefit of underlying securities • Promotion of seamless transferability of financial assets by the ARC to acquire financial assets of banks and financial institutions through the issuance of debentures or bonds or any other security as a debenture • Entrusting the Asset Reconstruction Companies to raise funds by issue of security receipts to qualified buyers • Facilitating the reconstruction of financial assets which are acquired while exercising powers of enforcement of securities or change of management or other powers which are proposed to be conferred on the banks and financial institutions • Presentation of any securitization company or asset reconstruction company registered with the Reserve Bank of India as a public financial institution • Defining ‘security interest’ to be any type of security including mortgage and change on immovable properties given for due repayment of any financial assistance given by any bank or financial institution • Classification of the borrower’s account as a non-performing asset in accordance with the directions given or under guidelines issued by the Reserve Bank of India from time to time • The officers authorized will exercise the rights of a secured creditor in this behalf in accordance with the rules made by the Central Government • An appeal against the action of any bank or financial institution to the concerned Debts Recovery Tribunal and a second appeal to the Appellate Debts Recovery Tribunal • The Central Government may set up or cause to be set up a Central Registry for the purpose of registration of transactions relating to securitization, asset reconstruction and creation of the security interest • Application of the proposed legislation initially to banks and financial institutions and empowerment of the Central Government to extend the application of the proposed legislation to non-banking financial companies and other entities • Non-application of the proposed legislation to security interests in agricultural lands, loans less than rupees one lakh and cases where eighty per cent, of the loans, is repaid by the borrower Objectives of SARFAESI Act, 2002 • Efficient or rapid recovery of non-performing assets (NPAs) of the banks and FIs. • Allows banks and financial institutions to auction properties (say, commercial/residential) when borrower fail to repay their loans.

Chapter 11: LIBOR & MIBOR, SWIFT Codes for banks

ambitiousbaba.com Online Test Series

ambitiousbaba.com Online Test Series

Chapter 12: Banking Ombudsman Scheme (India) & CIBIL Bank Credit What Is Bank Credit? Bank credit is the total amount of credit available to a business or individual from a banking institution. It consists of the total amount of combined funds that financial institutions provide to an individual or business. A business or individual's bank credit depends on the borrower's ability to repay the loan and the total amount of credit available in the banking institution. How Bank Credit Works Bank credit is the total borrowing capacity banks provide to borrowers. The credit allows borrowers to buy goods or services. Bank Credit requires a fixed minimum monthly payment for a certified period

ambitiousbaba.com Online Test Series

Priority Sector lending Priority Sector refers to those sectors of the economy which may not get timely and adequate credit. Priority Sector Lending is an important role given by the Reserve Bank of India (RBI) to the banks for providing a specified portion of the bank lending to few specific sectors. The sectors may be agriculture and allied activities, micro and small enterprises, poor people for housing, students for education and other low income groups and weaker sections. This is essentially meant for an all round development of the economy as opposed to focusing only on the financial sector. As per the RBI circular released in 2016, there are eight broad categories of the Priority Sector Lending. They are: (1) Agriculture (2) Micro, Small and Medium Enterprises (3) Export Credit (4) Education (5) Housing (6) Social Infrastructure (7) Renewable Energy (8) Others. The others category includes personal loans to weaker section, loans to distressed persons, loans to state sponsored organisations for SC/ST. Banks Mergers

ambitiousbaba.com Online Test Series

Banking order (Largest to Smallest) • State Bank of India • PNB +OBC +United Bank:- Punjab National Bank • Bank of Baroda + Vijya Bank+ Dena Bank:- Bank of Baroda • Canara + Syndicate Bank:- Canara Bank • Union Bank + Andhra Bank +Corporation Bank: Bank of India • Indian Bank + Allahabad Bank:- Indian Bank • Central bank of India • Indian Overseas Bank • UCO Bank • Bank of Maharashtra • Punjab and Sind Bank Chapter 13: Important Terms

Retail banking

ambitiousbaba.com Online Test Series

Retail banking, also known as consumer banking, is the provision of services by a bank to the general public, rather than to companies, corporations or other banks, which are often described as wholesale banking. Banking services which are regarded as retail include provision of savings and transactional accounts, mortgages, personal loans, debit cards, and credit cards. Retail banking is also distinguished from investment banking or commercial banking. Call money Call money is money loaned by a bank that must be repaid on demand. The money that is lent for one day in this market is known as “Call money“. Notice Money In the call money is usually availed for one day. If the bank needs funds for more days, it can avail money through notice market. Here, the loan is provided from two days to fourteen days. This is called notice money. Green Banking Green banking aims at improving the operations and technology along with making the clients habits environment-friendly in the banking business. It is like normal banking i. e. in addition to financing social activities does business in environmental activities including its financing. Skimming Skimming is a tactic used predominantly for credit-card fraud. Credit card fraud is a wide- ranging term for theft and fraud committed using or involving a payment card, such as a credit card or debit card, as a fraudulent source of funds in a transaction. The purpose may be to obtain goods without paying, or to obtain unauthorized funds from an account. Proportional reserve system Under the proportional reserve system, certain proportion of currency notes (40%) are backed by gold and silver reserves and the remaining part of the note issue by approved securities. Minimum Reserve System RBI is required to maintain a Gold and Foreign Exchange Reserves of Rs. 200 Crore of which at least Rs. 115 Crore should be in Gold. This is called Minimum Reserve system. Camels rating The CELS ratings or Camels rating is a supervisory rating system originally developed in the U.S. to classify a bank’s overall condition. It is applied to every bank and credit union in the U.S. It also implemented outside the U.S. by various banking supervisory regulators. Each factor is assigned a weight as follows: Capital adequacy -20 % Asset quality -20% Management- 25% Earnings -15% Liquidity- 10% Sensitivity -10% Core banking Solution Core (Centralized Online Real-time Exchange) banking is a banking service provided by a group of networked bank branches where customers may access their bank account and perform basic transactions from any of the member branch offices. Unified Payments Interface

ambitiousbaba.com Online Test Series

Unified Payments Interface (UPI) is an instant real-time payment system developed by National Payments Corporation of India facilitating inter-bank transactions. UPI is a payment system that allows money transfer between any two bank accounts by using a smartphone. UPI allows a customer to pay directly from a bank account to different merchants, both online and offline, without the hassle of typing credit card details, IFSC code, or net banking/wallet passwords. The Balance of Trade The difference of the country’s exports and the value of its imports are known as the Balance of Trade. Important features: i)The cost of production (land, labor, capital, taxes, incentives, etc.) in the exporting economy vis-à-vis those in the importing economy; ii) Currency exchange rate movements; iii) Multilateral, bilateral and unilateral taxes or restrictions on trade; iv) The availability of adequate foreign exchange with which to pay for imports; and Prices of goods manufactured at home (influenced by the responsiveness of supply).

A Balance of Payments The balance of payments, also known as balance of international payments and abbreviated B.O.P. or BoP, of a country is the record of all economic transactions between the residents of the country and the rest of the world in a particular period of (generally 1 year). Cheque Truncation System (CTS) Cheque Truncation System (CTS) or Image-based Clearing System (ICS), in India, is a project of the Reserve Bank of India (RBI), commenced in 2010, for faster clearing of cheques. CTS is based on a cheque truncation or online image-based cheque clearing system where cheque images and magnetic ink character recognition (MICR) data are captured at the collecting bank branch and transmitted electronically. Cheque truncation means stopping the flow of the physical cheques issued by a drawer to the drawee branch. Shadow banking system The shadow banking system is a term for the collection of non-bank financial intermediaries that provide services similar to traditional commercial banks but outside normal banking regulations. Likes Non-banking financial companies (NBFCs) The shadow banking sector plays an important role in promoting financial inclusion. The main Benefits of shadow banks lie in their ability to reduce transaction costs, their quick decision making ability, and customer orientation and prompt delivery of services. But there is also a risk in shadow banking practice in any economy because they can take their own decisions. Special drawing rights Special drawing rights are supplementary foreign-exchange reserve assets defined and maintained by the International Monetary Fund (IMF).The SDR is the unit of account for the IMF, and is not a currency per se. SDRs instead represent a claim to currency held by IMF member countries for which they may be exchanged. The SDR was created in 1969 to

ambitiousbaba.com Online Test Series

supplement a shortfall of preferred foreign-exchange reserve assets, namely gold and the U.S. dollar. Participatory Notes Participatory Notes commonly known as P-Notes or PNs 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. Participatory notes are instruments used for making investments in the stock markets. However, they are not used within the country. They are used outside India for making investments in shares listed in the Indian stock market.

Liabilities of A Bank In the simplest of terms, the bank’s liabilities are deposits, money that people deposit with the bank, because the banks owes that money to the depositors. Below are some of the products • Capital and Reserves • Savings account, current account, salary account • Fixed deposits • Recurring deposits • Insurance Assets of a Bank The asset products are those in which the customer is liable to pay to the bank. In banking term Assets are loans the banks makes to borrowers. Any type of loans like • Cash • Money at Call at Short Notice • Investments • Loans, Advances and Bills Discounted-or Purchased • Demand Loans • Term Loans • personal loan, car loan, education loan Etc • Credit card Initial Public Offering (IPO) Initial public offering (IPO) or stock market launch is a type of public offering in which shares of a company are sold to institutional investors and usually also retail (individual) investors; an IPO is underwritten by one or more investment banks, who also arrange for the shares to be listed on one or more stock exchanges. Through this process, colloquially known as floating, or going public, a privately held company is transformed into a public company. Initial public offerings can be used: to raise new equity capital for the company concerned; to monetize the investments of private shareholders such as company founders or private equity investors; and to enable easy trading of existing holdings or future capital raising by becoming publicly traded enterprises. Advantages of IPO • Enlarging and diversifying equity base • Enabling cheaper access to capital • Increasing exposure, prestige, and public image

ambitiousbaba.com Online Test Series

• Attracting and retaining better management and employees through liquid equity participation • Facilitating acquisitions (potentially in return for shares of stock) • Creating multiple financing opportunities: equity, convertible debt, cheaper bank loans, etc. Mortgage A loan used to buy real estate. A mortgage is secured by the property it is used to purchase. One must make monthly payments on a mortgage, and there is a set term before full payment is due, often 15, 20, or 30 years. Some mortgages have fixed interest rates, while others have variable interest rates. If one defaults on a mortgage, the bank making it may take possession of the real estate and sell it to recover its investment. Some banks, notably savings and loans, specialize in making mortgage loans.

Click here to Buy SBI CBO 2020 Online Test Series Topic 2: Financial & Banking Awareness (Covered May to Oct.) Number of Topics Name Chapter Chapter 1 RBI Annual Report 2019-20 Chapter 2 Banking & Financial Awareness (April to September) Chapter 3 List of loans agreement for India from

ambitiousbaba.com Online Test Series

different organizations Chapter 4 Merger and Acquires Chapter 5 Budget 2020 & Atma nirbhar Package Chapter 6 List of Important Committee 2020 Chapter 7 Bank Name & CEO of Bank & Headquarter & Tagline Chapter 8 Partnership/ Agreement Chapter 9 Ranking Index Chapter 10 India’s GDP Forecast FY20 &21 (Last Update 30 September) Chapter 11 RBI/SEBI Imposed monetary penalty on Banks and Organization 2020

Chapter 1: RBI Annual Report 2019-20 Reserve Bank of India released its annual report 2019-20. The report has made it very clear to the world that the apex bank stands as a bank with the highest levels of financial resilience globally. According to the report, the total income in 2019-20 has increased by 28.97%. The following are the key highlights of the report • The value of bank fraud cases has increased 74%. The number of bank fraudulent cases increased to 6,800 in 2019 as compared to 5,900 in 2018. • The Gross Non-Performing Ratio of banking system have declined to 9.1% as compared to 11.2% in March 2019. • The balance sheet size of Reserve Bank increased by 13.42% • The total income in the year 2018-19 was Rs 1,49,672. In 2019- 20, it was Rs 1,93,036. • The expenditure decreased by 39.72%. • The interest income of the bank increased by 44.62% • The RBI holdings of Government Securities increased by 57.19%. The currency in circulation has soared 17%. It was Rs 21.10 trillion in 2019-20. • Till June 2019, the RBI held 618.16 metric tonnes of gold as compared to 566,23 tonnes held in June 2018. • The Contingency Funds of RBI reduced to Rs 1.96 lakh crore. It was Rs 2.32 lakh crores in 2018-19. • This was mainly because RBI has changed the way of calculating its reserves based on the recommendations made by Bimal Jalan Committee. An Economic Capital Framework Committee was set up under former RBI Governor Bimal Jalan.

ambitiousbaba.com Online Test Series

Chapter 2: Banking & Financial Awareness (April to October) October banks and cooperative banks, with a RBI defers Basel III provisions amid repayment period of up to 36 months. Covid Uncertainty RTGS to be available 24x7x365 from The Reserve Bank of India (RBI) has Dec 2020 deferred implementation of provisions The Reserve Bank of India (RBI) in its made under Basel III capital due to Statement on Development and uncertainty related to COVID crisis. Regulatory Policies has announced that In this regard, RBI will repel the final the money transfer facility, RTGS, will be tranche of the capital conservation buffer available round the clock, 24 hours a (CCB) and the implementation of net day, 7 days a week from December stable funding ratio (NSFR) by six 2020. months i.e. April 1, 2021. Under the current rules, the transfers can The capital conservation buffer is an be made between 7 AM and 6 PM on all additional pool that banks build in normal working days except for the second and times for its use during periods of stress. fourth Saturday of the month and on The RBI had asked banks to build up the Sundays. capital conservation buffer to the The announcement comes after the RBI required 2.5% in stages. The last stage of made the NEFT facility available 24X7 0.625% was to start on Sept. 30, 2020. from December 16, 2019. This has now been deferred to April 1, Exim Bank's Government of India 2021. The RBI had earlier deferred the supported Line of Credit (LoC) of USD implementation by six months from 310 million to the Government of the March 31, 2020. Republic of Zimbabwe NABARD launches refinance scheme Export-Import Bank of India (Exim for WASH programme, earmarks Rs Bank) has entered into an agreement 800 cr for FY''21 with the Government of the Republic of In a bid to promote sustainable and Zimbabwe, for making available to the healthy lifestyle in rural areas, National latter, Government of India supported Bank for Agriculture and Rural Line of Credit (LoC) of USD 310 million Development (NABARD) on 1st October (USD Three Hundred and Ten million announced a special refinance facility to only) for the purpose of financing support the government''s Water, repowering of Hwange Thermal Power Sanitisation and Hygiene (WASH) Station in the Republic of Zimbabwe. programme. Exim Bank extends $400 mn soft loan An amount of Rs 800 crore has been to Maldives for connectivity project earmarked for this purpose for the India has extended a USD 400 million financial year 2020-21. NABARD will (about Rs 2,932 crore) soft loan to provide concessional refinance to all Maldives through the Exim Bank to eligible financial institutions, including finance a connectivity project in the commercial banks, regional rural nation of islands on 12th October.

ambitiousbaba.com Online Test Series

RBI raises banks’ aggregate exposure interest schemes for loans up to Rs 2 limit for small businesses crore. The lending institutions also Reserve Bank of India (RBI) has raised including non-banking financial the banks’ maximum aggregate retail companies. exposure limit to entities with turnover The Reserve Bank of India had up to Rs 50 crore to Rs 7.5 crore. announced a moratorium on Earlier this limit was Rs 5 crore. The repayment of loan for six months in decision has been taken to increase effect from March 1, 2020. The credit flow to small businesses. moratorium was provided in order to The risk weight of 75 per cent will apply help businesses and individuals to to all fresh exposures and also to existing overcome the financial problems that exposures where incremental exposure they faced during the COVID-19 lockdown may be taken by the banks up to the because of disruption in normal business revised limit of Rs 7.5 crore. activities . Later, the Supreme Court had API integration between PM SVANidhi, asked the Centre to implement the SBI portal launched interest waiver scheme on loans up to The Ministry of Housing & Urban Rs 2 crore under the RBI moratorium Affairs will integrate the application scheme on October 14, 2020. programming interface (API) between RBI imposes Rs 22 lakh fine on DCB SVANidhi portal and various banks to Bank for violating marketing norms expedite loan sanctioning and Private sector lender DCB Bank on disbursement process under Modi 29th October said RBI has imposed a government’s PM SVANidhi scheme for fine of Rs 22 lakh on the bank for nano entrepreneurs. violating marketing norms for Saral Jeevan Beema for Bharat: Irdai financial products. The Reserve Bank introduces standard life product imposed the penalty by an order dated The Insurance Regulatory and October 28. Development Authority of India (Irdai) IndusInd Bank first bank to go live on has come out with a standard, individual RBI’s 'Account Aggregator Framework' term life insurance product called Saral IndusInd Bank announced that it has Jeevan Bima. This will be mandatorily gone live as a ‘Financial Information offered by all life insurance companies Provider’ (FIP) under the new ‘Account from January 1, 2021, onwards. Insurers Aggregator Framework’ of the Reserve have to file the product with the regulator Bank of India (RBI), making it the first latest by December 1. bank in the country to do so. The Saral Jeevan Bima product to be Benefit: Customers can now avail a host offered by all life insurance companies of benefits such as viewing statements of will be a non-linked non-participating their accounts, track deposits, plan individual pure-risk premium life investments (such as shares, mutual insurance plan. funds, Insurance, EPF, PPF), avail credit RBI asks lending institutions to cards, etc. on a single window, thereby implement waiver of interest on empowering them to take informed interest schemes decisions pertaining to their finances. The Reserve Bank of India has asked DBS named Asia's Safest Bank for 12th all the lending institutions to consecutive year implement the waiver of interest on

ambitiousbaba.com Online Test Series

DBS Bank has been named the 'Safest local area banks and primary Bank in Asia' for the 12th consecutive (urban) co-operative year by New York-based trade publication banks other than salary Global Finance. DBS' rankings as the earners’ banks. PSL guidelines fourth-safest commercial bank in the were last reviewed for world and 14th safest bank globally commercial banks in April remain unchanged from 2019 and 2018. 2015 and for urban co- Environment is likely to remain operative banks in May 2018. uncertain, we are confident that our • Higher weightage has been strong capital base, deep customer assigned to incremental relationships and robust digital strategy priority sector credit will ensure that we are able to continue in ‘identified districts’ where supporting our customers and priority sector credit flow is communities.” comparatively low. 'Safest Bank in World' • The targets prescribed Rank 1: KfW (Germany) for “small and marginal Rank 2: Zuercher kantonalbank farmers” and “weaker (Switzerland) sections” are being increased Rank 3: BNG Bank (Netherland) in a phased manner. Rank 4: DBS (Singapore) • “Revised PSL guidelines will enable better credit penetration to credit deficient areas; September increase the lending to small RBI revises priority sector and marginal farmers and lending guidelines weaker sections; boost credit The Reserve Bank of India (RBI) on 4th to renewable energy, and September said it has revised priority health infrastructure. sector lending (PSL) guidelines to RBI to Implement Positive Pay System include entrepreneurship and renewable from January 1, 2021 resources, in line with emerging national The Reserve Bank of India (RBI) has priorities. come up with positive pay system for Bank finance to start-ups (up to Rs 50 cheque payments to prevent cases of crore), loans to farmers for installation banking fraud. It will be implemented of solar power plants for solarisation from January 1, 2021. of grid-connected agriculture Customers will now have to furnish pumps and loans for setting up details of cheques like name of the Compressed BioGas plants have been beneficiary, payee, amount to the drawee included as fresh categories eligible for bank and date through available means, finance under priority sector. SMS, internet banking or ATM and mobile Other Highlights of revised priority app. This will be applicable if the amount sector lending guidelines mentioned on the cheque is above Rs • The new guidelines are 50,000. applicable to all commercial Benefit: The central bank has asked all banks including regional rural the banks to spread awareness on the banks, small finance banks, positive pay system among their customers through SMS or putting out

ambitiousbaba.com Online Test Series

information regarding that in branches. Idea Payments (ABIP) Bank under They can also make their customers Banking Regulations Act 1949 with familiar with the positive pay system effect from July 28, 2020. through their website. The decision to shut operations by the CARE Ratings projects India’s Aditya Birla Idea Payments Bank was combined fiscal deficit at 13% of GDP taken due to unanticipated developments in FY21 in the business landscape which have Domestic rating agency CARE Ratings made the economic model unviable, a pegged India’s combined fiscal deficit regulatory filing by the Vodafone Idea at 13-13.4% of gross domestic product Limited had said in July last year. Now the (GDP) for the current fiscal even as it bank company could not able to work assumed no further fiscal stimulus. successfully and applied for voluntary While the Centre’s deficit is expected to winding up by the Vodafone Idea touch Rs 17.8 lakh crore against the Limited which holds 51% in ABIP bank target of Rs 8 lakh crore, the states are and the remaining 49% by Grasim likely to record a deficit of Rs 7.73 lakh Industries Limited. crore over the budgeted Rs 6.35 lakh Reliance Industries becomes first crore, the agency said in a report on 28th Indian firm to top $200 bn market cap September. Reliance Industries (RIL) on 10th This implied a deficit of about 9% of GDP September became the first Indian for the central government against the company to surpass $200 billion in budgeted 3.5% and at 3.9% for the states market capitalisation (m-cap). On 10th over the budgeted 2.8%, resulting in a September closing price, RIL had an m- combined deficit of more than double the cap of Rs 15.3 trillion ($208 billion). year’s target of 6.4%. Tata Consultancy Services (TCS) is a Vodafone Idea rebrands itself, to go by distant second, with an m-cap of Rs brand name "Vi" 8.75 trillion, ($119 billion). Vodafone Idea Ltd said on 7th FDI inflow from China declines to USD September announced that it will go by 163.77 million in FY20 the brand name "Vi". There has been decline in foreign direct Bank of India launches ‘Signature Visa inflow from China in the last three Debit Card’ for HNIs years with FDI coming down to USD Bank of India, on the occasion of its 163.77 million in 2019-20, Minister of 115th Foundation Day on September 7, State for Finance Anurag Singh Thakur 2020 decided launched “Signature Visa informed Lok Sabha on 14th September. Debit Card” for the affluent/high net Giving details of the total foreign direct worth individuals maintaining an investment (FDI) inflow from Chinese average quarterly balance of ₹10 lakhs companies in India, he said, it was USD and above. 350.22 million in 2017-18, while it This card will have a spending limit of up declined to USD 229 million in the to Rs. 5 lakhs on POS & E-commerce following year. During 2019-20, FDI and Rs.1 lakh on ATM. further came down to USD 163.77 Aditya Birla Idea Payments Bank million, he said in a written reply on the ceased to be banking company: RBI first day of the monsoon session. Reserve Bank of India has ceased the SBI and Titan launch India’s first Banking operations by the Aditya Birla contactless payment watch

ambitiousbaba.com Online Test Series

The State Bank of India (SBI), India’s their 745 megawatt gas-based project largest public sector lender, and Titan in Bangladesh. Company have partnered to launch Reliance Power hold 51% stake while contactless payment services through JERA will hold 49% stake in the joint watches, called “Titan Pay”. venture company. India extends $250 million support to National Bank of Bahrain selects Maldives to overcome economic Infosys Finacle for transformation of impact of Covid-19 transaction banking business India has provided financial assistance National Bank of Bahrain and Infosys of USD 250 million to the Maldives to Finacle announced the bank's decision help it mitigate the economic impact of to adopt the Finacle Cash Management the COVID-19 pandemic, the Indian Suite to digitally transform its embassy here said on 20 September. transaction banking business. The grant, provided under the most India extended US$18 mn Line of favourable terms possible, India has Credit to Maldives for expansion of provided a sovereign guarantee to SBI for fishing facilities this financial assistance. The soft loan of India has extended the Line of Credit $ 250 million has a comfortable tenor (LoC) worth US$18 million to the of 10 years and a very low interest Government of Maldives for the rate. expansion of fishing facilities at RBI publishes “’Technology Vision for Maldives Industrial Fisheries Company Cyber Security’ for UCBs (MIFCO) based in Felivaru, Lhaviyani The Reserve Bank of India (RBI) will Atoll, through the development of fish implement the “Technology Vision for collection and storage facilities, and the Cyber Security’ for Urban Co-operative setting up of a tuna cooked plant and Banks (2020-2023) to enhance the IT fishmeal plant. security system of Urban Co-operative The credit line agreement was signed by banking to prevent, detect, respond to India’s Export-Import Bank (EXIM). and recover from cyber-attacks. Exim Bank extends $250 million line of The Technology Vision Document aims credit to Mozambique at enhancing the cybersecurity posture Export-Import Bank of India (Exim of the Urban Co-operative banking sector Bank) on 7th August said it has against evolving IT and cyber threat extended a USD 250-million (about Rs environment. RBI will achieve this 1,870 crore) line of credit (LOC) to objective using its five-pillared strategic Mozambique for improving power approach ‘GUARD’. supply quality in the country. August With the signing of this LOC agreement, Reliance Power, JERA ink loan Exim Bank till date has extended 14 agreement with banks for new power LOCs to Mozambique, taking their total plant in Bangladesh value to USD 772.44 million. Reliance Power announced on 31stJuly Home-grown social media app that it has signed a loan agreement, ShareChat to get $100 million funding along with Japanese utility JERA, for from Microsoft $642 million with a group of lenders for Microsoft run enterprise is all set to invest about $100 million in the home- grown regional language social media

ambitiousbaba.com Online Test Series

app ShareChat. ShareChat which has a India announces USD 500 million help user base of over 140 million monthly in Maldives Connectivity project active users in the country did not Maldives has thanked India for its respond to an email query. developmental assistance as budget NPCI launches omni-channel loyalty support and greater Male connectivity platform ‘nth Rewards’ project. The National Payment Corporation of India support the implementation of India (NPCI) has launched a loyalty GMCP in Maldives, through a financial platform named ‘nth Rewards’. Here nth package consisting of a grant of USD represents “infinite possibilities”. 100 million and a new Line of Credit of Benefit: It is an analytics-enabled USD 400 million. omnichannel multi-branded loyalty RBI mandates system-based asset platform. It allows users to earn “nth” classification for UCBs (infinite) loyalty points through The Reserve Bank of India (RBI) on various bank transactions. These 12th August asked urban co-operative rewards point can be redeemed for banks (UCBs) with assets of ₹2,000 various purposes including online crore or more to implement system- shopping. based asset classification from 30 June South Indian Bank gets RBI's nod to set 2021. up non-financial subsidiary System-based asset classification refers to Private sector lender South Indian asset classification (downgrading as well Bank (SIB) on 12th August announced as upgrading) carried out by the RBI has given an in-principle computerized systems of a bank in an approval for setting up a wholly owned automated manner. non-financial subsidiary. SBI General Insurance Launches India extends assistance of USD 1 ‘Shagun – Gift an insurance’ policy million to Antigua and Barbuda to SBI General Insurance, one of the combat COVID-19 pandemic leading general insurance companies in The Indian government has extended India, announced the launch of first-of- an assistance of USD 1 million to its-kind offering, ‘Shagun – Gift an Antigua and Barbuda to combat the Insurance”, a unique gift of Personal ongoing COVID-19 pandemic. Accident policy. The provided assistance is aimed at Data & AI have potential to add $500 improving health capacities and billion to economy by 2025: Nasscom infrastructure in the Caribbean Driving utilisation of data and artificial country. intelligence (AI) could play a crucial RBI governor announces 'positive pay' role in realising India’s 2025 vision of feature to help avert cheque frauds inclusive development and deliver over RBI Governor Shaktikanta Das on 13th $500 billion in value to the economy, August said that the banking system will says a Nasscom report. move to a positive pay practice in This segment could account for 10 per cheque transactions to curb frauds. cent of the country’s GDP by 2025, "To enhance safety of cheque payments, it according to the industry body. has been decided to introduce a HSBC India launched green deposit mechanism of 'Positive Pay' for all programme for corporate clients cheques of value Rs 50,000 and above.

ambitiousbaba.com Online Test Series

HSBC India on 21st August launched a The National Bank for Agriculture and “green deposit programme”, exclusively Rural Development (Nabard) on 24th for corporate clients, under which August said it has introduced a dedicated deposits will be used by the bank to debt and credit guarantee product to finance green initiatives and environment ensure unhindered flow of credit in rural friendly projects. areas hit by the COVID-19 pandemic, HSBC India Launched Omni Collect, a loans extended to small and mid-sized One Stop Solution to Businesses micro finance institutions (MFIs). HSBC India has launched Omni Collect, It will help in facilitating Rs 2,500 a one-stop solution in India. It supports crore funding in the initial phase businesses to offer multiple payment which is expected to be scaled up in options on a single platform. the future. The program is targeting to It is designed for businesses to easily cover over 1 million households across 28 collect payments through various States and 650 districts. digital methods, thereby allowing them 2nd RBI Monetary Policy 2020-21: Bank to easily adapt to the changes in keeps repo rate unchanged consumer spending. The Reserve Bank of India's (RBI) Axis Bank introduced ‘Liberty Savings Monetary Policy Committee (MPC) on Account’ for the Indian Youth August 6 kept the repo rate and reverse Axis Bank has introduced ‘Liberty repo rate unchanged. Savings Account’ for the Indian Youth, to The MPC maintained the policy stance at address the ever-changing lifestyle needs accommodative, RBI Governor of young and digitally interested Indians. Shaktikanta Das said. It offers a complimentary hospital cash Repo Rate-4.% insurance cover of up to Rs 20,000 per Reverse Repo Rate -3.35% year, which covers hospital expenses Marginal Standing Facility(MSF) Rate- incurred under COVID -19, which makes 4.25% this a 1st of its kind savings account to Bank Rate-4.25% cover the pandemic. This account Cash reserve Ratio(CRR)-3% targets to meet the lifestyle requirements Statutory Liquidity Ratio(SLR)-18% of the working class that falls under 35 July 2020 years of age. HDFC Bank to Offer ‘ZipDrive’, an TN women top the list of MUDRA loan Online Instant Auto Loans to its scheme beneficiaries Customers According to the data Tamil Nadu HDFC Bank annouced it will offer topped the list in availing loans to ZipDrive instant auto loans to women. It was followed by West Bengal customers in 1,000 cities across India. and Karnataka. ZipDrive is HDFC Bank's instant auto loan • The loans provided by other disbursal product for customers with pre- states are as follows approved offer. The product will now be • Tamil Nadu: Rs 58,227 crores. available in tier 2 and 3 cities across • West Bengal: Rs 55,232 crores India. • Karnataka: Rs 47,714 crores Yes Bank launches ‘Loan in Seconds’ Nabard launches credit guarantee for instant loan disbursements programme for NBFC-MFIs

ambitiousbaba.com Online Test Series

YES BANK announced the launch of (approximately $10 billion) fund for the ‘Loan in Seconds’, a unique solution upscaling of its digital India mission. At enabling instant disbursement of retail the online-only event, Google's CEO, loans for the Bank’s pre-approved Sundar Pichai, made the announcement liability account holders, in line with of India Digitization Fund, which will the Bank’s strategy of building a see the company invest Rs 75,000 crore in transformed ‘Digital Bank’. India in 5-7 years. Fino Payments Bank launches India moves up a rank, becomes 'Bhavishya' savings account for minors second-largest foreign investor in UK Fino Payments Bank Limited on 7th July India invested in 120 projects and announced the launch of a savings created 5,429 new jobs in the UK to account scheme for minors aged become the second-largest source of between 10-18 years. foreign direct investment (FDI) after Cabinet approves capital infusion of Rs the US in 2019, according to new UK 12,450 crore in 3 state-run insurance government figures. companies NABARD launches Scheme: Rs 5,000 The Union Cabinet on 8th July approved crores allocated to computerise PACS capital infusion of Rs 12,450 crore for The National Bank for Agriculture and three public sector general insurance Rural Development (NABARD) has companies namely Oriental Insurance launched a refinance scheme for financial Company Ltd, National Insurance institutions and banks. It has allocated Company Ltd & United India Insurance Rs 5,000 crores for the scheme. Company Ltd (including Rs 25,00 crore Aims: Under the scheme, the Primary infused in FY 2019-20). Agricultural Credit Societies are to be Tamil Nadu tops market borrowings turned into multi-service centres. The among States so far, in 2020-21 fund allocated under the scheme is to be Tamil Nadu has so far raised ₹30,500 made available to financial institutions crore in the fiscal 2020-21 and has and banks to lend to the beneficiaries in topped market borrowings among States 2,150 water shed development projects. in the country. Tamil Nadu has NABARD has also launched the scheme to accounted for 17% of the borrowings computerise PACS (Primary Agricultural done through the issue of bonds, known Credit Societies). Under the scheme, as state development loans, according to 5,000 PACS are to be upgraded in the data from the Reserve Bank of India initial phases, 15,000 by 2022 and (RBI). another 15,000 by 2023. With borrowings of ₹25,500 crore, Tamil Nadu signs MoUs with 8 Maharashtra accounted for 14%, companies worth Rs 10,399 crore followed by Rajasthan and Andhra Tamil Nadu on signed Memorandum of Pradesh at 9% each (₹17,000 crore), as Understanding (MoUs) with eight per the data. companies to set up their manufacturing Google announces India Digitization units in the state bringing an Fund, will invest Rs 75,000 crore: investment of Rs 10,399 crore. Sundar Pichai The cumulative investment envisaged in Google for India 2020 has thrown up a the projects will create 13,507 jobs across few surprises, with the company the state in solar cells, data centres and announcing a major Rs 75,000 crore industrial parks.

ambitiousbaba.com Online Test Series

FamPay launches India’s first disbursed Rs 3,892.78 crore in the first numberless card for teenagers two days of the month under the Rs 3- FamPay is India’s first neo bank for lakh crore Emergency Credit Line teenagers that allows them to make Guarantee Scheme (ECLGS) for the UPI and P2P transactions through their Micro, Small and Medium Enterprises own unique UPI ID without the need to (MSME) sector hit hard by the set up a bank account has recently coronavirus-induced lockdown. launched India’s first numberless card RBI sets up Payment Infrastructure – FamCard. Development Fund (PIDF) of Rs 500 Bank of Maharashtra joins hands with crore to promote digital payments Uniken for Omni-channel security The Reserve Bank of India (RBI) on 5th In a bid to secure its Internet banking June said it was setting up a Payment channels as also mobile, card, call Infrastructure Development Fund centres and ATMs, among others, (PIDF) with a corpus of Rs 500 crore, against cyber fraud, the state-owned with an aim to give a push to digital Bank of Maharashtra has joined hands payments nationwide. with Uniken, a pioneer in the field of The RBI has made an initial contribution digital security in India. The bank will of Rs 250 crore covering half the fund. use Uniken’s REL-ID technology for Omni- The remaining will come from the card- channel security. issuing banks and card networks SBI providing USD 16 million liquidity operating in the country. support for local businesses in Adani Green Energy wins world's Maldives largest solar bid worth $6 billion Amid the COVID-19 pandemic which has Adani Green Energy Ltd has bagged the affected economies across the world, world's largest solar bid entailing while the smaller nations facing the brunt building a photovoltaic (PV) power of the pandemic even more, the State plant of 8,000 MW and setting up a Bank of India (SBI) in order to assist one domestic solar panel manufacturing such friendly nation, the Maldives, is capacity of 2,000 MW, envisaging a providing liquidity support of USD total investment of roughly $6 billion. 16.20 million for local businesses and India becomes 2nd nation to have deferred loan repayment for over 200 contact-free ATM cash withdrawals retail accounts, the Indian High In order to eliminate the use of Commission in the Maldives said on 28th physical card or touch an ATM PIN pad, July. amid the spread of coronavirus from contaminated surfaces, Empays Payment June 2020 Systems has joined hands with Mastercard to launch “Cardless ATM PSBs Sanction Loans Worth Rs 10,361 powered by Mastercard” in India based Crore To MSMEs Under ECLGS on the standards of EMV (Europay, Public sector banks have sanctioned Mastercard, and Visa). With this, India loans worth Rs 10,361.75 crore under will be the first country outside the the 100 percent Emergency Credit Line United States (US) where this product Guarantee Scheme, said Finance will be launched. Minister Nirmala Sitharaman's office on India to Launch First-Ever Coal 3rd June. Public sector banks have Trading Exchange

ambitiousbaba.com Online Test Series

India is reportedly planning to open its domestic and foreign companies for first coal trading exchange on the basis Foreign Direct Investment(FDI) worth of commodity or energy exchanges. over Rs 16,000 crores. Coal consumers and traders throughout It is a part of the Magnetic Maharashtra the country welcomed the move but said 2.0 initiative. The MoU was signed by the exchange should be started only when the global companies in the field of there are more buyers and sellers. engineering, car and spare parts Exim Bank extends $216 million credit manufacturing, information technology, line to Malawi govt logistics, chemicals, and food processing. Export-Import Bank of India (Exim RIL becomes first Indian company to Bank) on 12th June announced it has hit $150-billion market cap extended a line of credit (LOC) worth The market valuation of Reliance $215.68 million to the Malawi Industries Ltd crossed Rs 11 lakh crore government for drinking water supply on after chairman Mukesh Ambani schemes and other development announced that his oil-to-telecom projects. conglomerate had become net debt-free. With the signing of this agreement, Exim Reliance Industries is also the first Bank, so far, has extended five LOCs to Indian company to cross the Rs 11 lakh Malawi, on behalf of the Indian crore market valuation mark. Mukesh government, taking the total value of Ambani, the chairman and managing LOCs extended to $395.68 million. director of India's most-valued Focus Africa: Exim Bank has now in company Reliance Industries (RIL). place 260 LOCs, covering 62 countries Mukesh Ambani Joins Club Of World’s in Africa, Asia, Latin America and the 10 Richest As Net Worth Jumps To CIS, with credit commitments of around $64.6 BN $25.68 billion, available for financing Mukesh Ambani has entered the list of exports from India. top ten richest persons in the world, India 9th largest recipient of FDI in according to the Forbes Real-Time 2019: UN Billionaire list. Mukesh Ambani's net India received USD 51 billion in worth increased by over 12 times from foreign investment in 2019 and was USD 5.3 billion to USD 64.6 billion (Rs the world's 9th largest recipient of 4.9 lakh crore). foreign direct investments (FDI) in Exim Bank extends USD 20.1 mn credit 2019, according to a report by the UN's line to Nicaragua govt trade body. Export-Import Bank of India (Exim Airtel Payments Bank launches Bank) on 20th June said it has 'Suraksha Salary' account for MSMEs extended a line of credit (LOC) of USD Airtel Payments Bank announced a 20.10 million to the government of salary account for micro, small and Nicaragua for reconstruction of Aldo medium enterprises (MSME). Chavarria Hospital. Maharashtra signs MoUs with domestic With signing of this agreement, Exim and foreign companies for FDI worth Bank, so far, has extended four LOCs to over Rs 16,000 crores: Magnetic Nicaragua, on behalf of the Indian Maharashtra 2.0 government, taking the total value to Maharashtra signed 12 Memorandum USD 87.63 million. of Understanding(MoUs) with 12

ambitiousbaba.com Online Test Series

Yes Bank partners Affordplan to Govt to provide 2% interest subsidy to launch co-branded cashless healthcare 'Shishu' borrowers under Mudra Yojna card called ‘Swasth Card’ The government on 24th June decided Yes Bank Limited, an Indian public to provide 2% interest subvention to bank, has joined hands with Delhi- borrowers under the 'Shishu' category based fintech startup Affordplan, to of the flagship Pradhan Mantri MUDRA launch a first of its kind co-branded Yojana (PMMY). healthcare card called ‘Swasth Card’ Under the Shishu category, collateral free under Swasth program with the aim to loans of up to ₹50,000 are given to enable families plan and manage their beneficiaries. finances for their healthcare needs. About: Pradhan Mantri Mudra Yojana The co-branded card will have flexible Shishu loan: Shishu loans under the recharges from Rs 100 up to a Mudra scheme allow entrepreneurs on maximum balance of Rs 1 lakh. the threshold of starting a business to Cooperative banks to be brought under RBI supervision borrow up to Rs. 50,000. The Union Cabinet approved inclusion Kishore loan: Kishore loans range from of co-operative banks under Rs. 50,001 to Rs. 5,00,000. supervisory powers of the Reserve Tarun loan: Tarun loans under the Bank of India, while announcing a Rs PMMY scheme range from Rs. 5,00,001 1,542 crore year-long interest to Rs 10,00,000. subvention scheme for micro loan India retains position of 3rd-largest borrowers. economy on PPP basis for 2017 Among a number of decisions taken by India has retained and consolidated its the Cabinet on Wednesday, the position as the third-largest economy government decided to put government after China and the US in terms of banks, including 1,482 urban purchasing power parity (PPP) for cooperative banks and 58 multi-state 2017, said the government quoting the cooperative banks, under the World Bank data. supervisory powers of RBI, through an NABARD provides Rs 270 crore to ordinance. Assam Gramin Vikash Bank RBI's powers on scheduled banks will be National Bank for Agriculture and hence applicable on co-operative banks as Rural Development (NABARD) has well. made available a Special Liquidity Karnataka Bank launches KBL Micro Facility (SLF) of Rs 270 crore to Assam Mitra for micro enterprises Gramin Vikash Bank for supporting the Karnataka Bank has launched a new agricultural activities of the farmers. product KBL Micro Mitra, wherein The Reserve Bank of India(RBI) has financial assistance up to Rs.10 lakhs announced a Rs 50,000 crore refinance can be provided to the Micro facility for 3 All-India Financial manufacturing and service enterprises Institutions(AIFI) namely: NABARD, either for working capital or for the Small Industries Development investment purposes. Bank of India (SIDBI), and the National The facility comes with a simplified Housing Bank (NHB). procedure and competitive rate of interest.

ambitiousbaba.com Online Test Series

From the total of Rs 50,000 crore institutions and land monetisation to NABARD received Rs 25,000 crore to meet the funding needs, the ministry said refinance Regional Rural in a statement. Banks(RRBs), co-operative(co-op) The task force was set up following banks and Microfinance Prime Minister Narendra Modi Institutions(MFIs) to ensure credit flow Independence Day speech of 2019 to farmers for agricultural operations where he alluded to an investment of during COVID-19 pandemic. Rs 100 lakh crore in infrastructure. Note RBI cancels licence of Mumbai-based • NABARD disbursed Rs 12,767 CKP Cooperative Bank crores to State(Co-op) Banks & The Reserve Bank of India (RBI) on Regional Rural Banks(RRBs) 2nd May cancelled the licence of across the country. Mumbai-based CKP Co-operative Bank • Sanctioned Rs 1,500 crores for Ltd. The bank has about 97 percent Punjab, out of which Rs 1,000 NPAs. The licence of CKP Co-operative crores is sanctioned to Punjab Bank Ltd has been cancelled with effect State Cooperative Bank and Rs from the close of business on April 30, 500 crores to Punjab Gramin 2020, as the bank's financial position Bank. had worsened. • Extended Rs 1,050 crores SLF to Nabard disburses ₹12,767 cr to State West Bengal so far in the current Co-op Banks, RRBs fiscal year (FY 21), of the total The National Bank for Agriculture and amount, Rs 300 crore disbursed Rural Development (Nabard), on 6th for MFIs, Rs 700 crore May, said it has disbursed ₹12,767 sanctioned for state cooperative crore to State Co-operative Banks banks and Rs 50 crore for RRBs. (StCBs) and Regional Rural Banks • Extended Rs 20,500 crores SLF (RRBs) across the country to augment to co-operative banks(Rs 15,200 their resources for extending credit to crores) and Regional Rural farmers during the ongoing lockdown. Banks(Rs 5,300 crores) in There are 33 StCBs and 45 RRBs in the various States. country, and they are important May 2020 intermediaries in the rural credit structure. Govt. task force projects Rs 111 lakh cr India Raises FY21 Gross Borrowing infrastructure investment over five Target To Rs 12 Lakh Crore years to FY2025: Finance ministry The Indian government has raised its Government task force has projected gross borrowing programme for the total investment of Rs 111 lakh crore current financial year sharply as it seeks in infra projects over five years, the more funds to deal with the economic th Finance Ministry said on 29 April. fallout of Covid-19. The final report of the task force on In a circular issued on 8th May, the National Infrastructure Pipeline (NIP) government said that the gross for 2019-2025 presented to Finance borrowing target for the year has been Minister Nirmala Sitharaman suggested raised to Rs 12 lakh crore from the steps like deepening bond markets, budgeted Rs 7.8 lakh crore. setting up of development financial

ambitiousbaba.com Online Test Series

Nabard sanctions Rs 1,500 cr for Kotak Mahindra Bank becomes first Punjab to ensure credit flow to Indian lender to allow video KYC farmers Kotak Mahindra Bank on 18th May has The National Bank for Agriculture and introduced video-KYC facility for Rural Development (NABARD) has customers opening savings account on sanctioned Rs 1,500 crore for Punjab Kotak 811 - the banks digital banking to ensure continuous credit flow to platform. The private lender is the first farmers, through state cooperative banks, Indian bank to offer video based "zero- amid the COVID-19 pandemic. contact" onboarding service. "Nabard has sanctioned a sum of Rs Finance ministry exempts B2B firms 1,500 crore, out of which an amount of from using only BHIM, RuPay for Rs 1,000 crore has been sanctioned to accepting payments Punjab State Cooperative Bank and Rs The finance ministry on 20th May 500 crore to Punjab Gramin Bank. exempted companies with a turnover Nine NBFCs surrender certificate of of over ₹50 crore and involved in only registration B2B transactions from the requirement of Nine NBFCs, including Reliance Net and accepting payments only by electronic Nischaya Finvest Private Limited, have modes like RuPay or BHIM-UPI. surrendered their certificate of IRDAI allows Union Bank of India to registration, the Reserve Bank of India. continue 30% holding in IndiaFirst Penrose Mercantiles Ltd, Manohar Life Insurance Finance India Ltd, Chandelier Tracon Pvt Insurance Regulatory and Ltd, and Sanghi Hire Purchase Ltd are Development Authority of India among the NBFCs which have (IRDAI) has allowed Union Bank of surrendered their certificates. India’s proposal to continue with its 30 The certificate of registration is granted prcent holding in IndiaFirst Life by the RBI. With surrendering the Insurance with the condition that the certificates, the companies cannot lender will hold no control in the transact the business of a non-banking management of the insurer. financial institution. Earlier, the bank was expected to divest In another statement, the central bank either the entire stake in IndiaFirst Life said it has cancelled the certificate of Insurance, or a considerable part of it, as registration of 14 non-banking IRDAI guidelines restrict a lender to financial companies (NBFCs). own more than 10 percent stake in two Nabard extends ₹20,500-cr special insurance companies. liquidity facility to co-op banks, RRBs PFC signs MoU with NBPCL to fund The National Bank for Agriculture and projects worth ₹ 22,000 crore for 225 Rural Development (Nabard), on 19th MW hydro-electric projects in MP May, said it has extended ₹20,500- Power Finance Corporation (PFC), the crore special liquidity facility to co- central PSU under Ministry of Power operative banks (₹15,200 crore) and and India's leading NBFC on 26th May Regional Rural Banks (₹5,300 crore) in entered into an agreement with Narmada various States. Basin Projects Company Ltd. (NBPCL), This is against the ₹5,000 crore lent a wholly-owned company of Govt. of during the first quarter of the last year. Madhya Pradesh, to fund projects worth Rs.22,000 crore for 225 MW

ambitiousbaba.com Online Test Series

hydro-electric projects & multipurpose The National Bank for Agriculture and projects in the State of Madhya Pradesh. Rural Development (NABARD) has The funds will be deployed by NBPCL for sanctioned credit of Rs 1,050 crore in setting up hydroelectric projects of 225 the current fiscal so far to West Bengal MW and power components of 12 major for benefit of farmers and poor people multipurpose projects in Madhya in rural areas. Pradesh. The credit support under special liquidity The MoU will help PFC to actively facility (SLF) will be extended to state partner with NBPCL and provide finance cooperative banks, regional rural banks for hydro-electric plants totaling 225 MW and micro-finance institutions (MFIs). along with power components of The NABARD has already disbursed an multipurpose projects as part of state amount of Rs 720 crore to state government’s endeavor to implement coperative and regional rural banks. twelve major multipurpose projects. April 2020 FDI in India jumps 13% to record USD SBI lists $100 million green bonds on 49.98 bn in 2019-20 India INX Foreign direct investment (FDI) in BSE’s India International Exchange India rose by 13 per cent - the sharpest (India INX) on 2nd April said state- pace in the last four fiscals - to a record owned SBI has listed green bonds of of USD 49.97 billion in 2019-20, USD 100 million (about Rs 750 crore) according to official data. on its debt listing platform. The bank The country had received FDI of USD has listed green bonds of USD 100 44.36 billion during April-March 2018- million under its USD 10 billion global 19. medium term note programme on Foreign investments in the last fiscal India INX’s Global Securities Market grew at the sharpest pace since 2015- Green Platform (GSM). 16 when the inflows had jumped by 35 PNB Housing Finance signs pact with per cent. Also, the country logged its all- JICA to raise $75 million time high FDI in a fiscal year since 2000- PNB Housing Finance has signed an 01 when the first such data was released. agreement with Japan International Singapore top source of FDI in FY20 Cooperation Agency (JICA) to raise 75 (2019-20) with investments worth USD million dollars (about ₹568 crore) with 14.67 bn co-financing of 25 million dollars (about Fiscal deficit widens to 4.6% of GDP in ₹190 crore) by Citibank to finance 2019-20 mortgage loans in the affordable housing India's fiscal deficit widened to 4.6 per segment. cent of the Gross Domestic Product in Former RBI Governor Raghuram Rajan 2019-20 mainly on account of poor appointed to a 12-member advisory revenue realisation. The deficit, which group to IMF signifies the gap between government Former RBI Governor Raghuram Rajan revenue and expenditure, is higher than has been appointed to a 12-member the revised estimate of 3.8 per cent for advisory group to International the fiscal. Monetary Fund (IMF) Managing NABARD sanctions Rs 1,050 crore Director Kristalina Georgieva. credit support to West Bengal

ambitiousbaba.com Online Test Series

The External Advisory Group will provide 16, 2020. The Central Registrar of Co- its perspectives from around the world operative Societies, Government of India on developments and policy issues, has also been requested to issue an order including policy responses to the for winding up the bank and appoint a exceptional challenges surrounding liquidator for the bank. the global coronavirus pandemic and Government revised FDI Rules to limit its economic impact, the world the takeover of Indian firms organisation said in a release on 11th The central government has April. revised the Foreign Direct Investment Key Point (Highlights) from RBI (FDI) policy in an attempt to Governor Shaktikanta Das’ media limit opportunistic address: 17th April 2020 takeovers or acquisitions of Indian Period of resolution plan for NPAs to be companies who are in bad place and extended by 90 days whose stock prices are falling due to the RBI undertook three long-term repo COVID-19 pandemic. operations (TLTRO) to ease liquidity The government has now narrowed the constraints. The TLTRO option of Rs scope of eligible investors. Now, entities 25000 crore is to be conducted today from countries which share a land border (April 17): Governor Shaktikanta Das with India will now be permitted to invest The measures though significant were not only under approval route. Companies in substantial enough as a mere Rs 50,000 the country that shares a border with crore in the form of TLTRO is rather India will now have to approach the govt. conservative. However, for the moment for investing in India and not go via the major concerns have been addressed as automatic route. real estate and NBFC sectors have This restriction will also apply if the received massive relief, NBFCs (small and beneficial owner of the investment is an large) have liquidity coming in from entity situated in or a citizen of such TLTRO 2.0, financial institutions countries. like SIDBI, NABARD and NHB have India shares a border with China, received liquidity directly from the RBI Pakistan, Bangladesh, Nepal, Myanmar, and there is relief on the NPA recognition Bhutan and Afghanistan. and stressed asset reclassification for RBI announces ₹50,000 crore special Banks. liquidity facility for mutual funds • 25000 cr. to NABARAD. The Reserve Bank of India on 27th • 10000 cr. to NHB April announced a special liquidity • 15000 cr to SIDBI facility of ₹50,000 crore for mutual RBI increases WMA limit of state govts funds in the wake of the winding up of six by 60% for 30% debt funds by Franklin Templeton. RBI cancels banking license of Mapusa Transcorp becomes the 1st non-bank Urban Co-op Bank company to receive RBI nod to enter The Reserve Bank of India (RBI) has, into co-branding arrangements vide order dated April 16, 2020 Transcorp International Ltd has cancelled the licence of The Mapusa received RBI nod for entering into co- Urban Co-operative Bank of Goa Ltd, branding arrangements for Prepaid Goa, to carry on banking business, with Instruments that can be used in over effect from the close of business on April 35 lakh stores and online gateways.

ambitiousbaba.com Online Test Series

With this, Transcorp has become one of Maldives to help reduce the impact of the first non-bank companies to obtain the virus. On behalf of India, this facility this authorization from RBI, the has been extended under the $ 400 company said in a statement. million currency swap agreement India facilitates $ 150 million foreign between the two countries signed in July currency swap facility to Maldives due 2019. Maldives is the only country other to Covid-19 than Bhutan to have been given this India has extended $ 150 million facility. foreign currency swap support to

Chapter 3: list of loans agreement for India from different organizations Loan (October) ORGANIZATION/BANK Loan Amount PURPOSE New Development Bank US $500 million for the Delhi-Ghaziabad-Meerut (NDB) Regional Rapid Transit System (RRTS) project. New Development Bank US $241 million loan for Mumbai metro (NDB) Asian Development Bank $15 million The Asian Development Bank (ADB) (ADB) announced that it has signed an agreement to invest $15 million in Avaada Energy Private Limited (AEPL) to help expand the company’s solar generation capacity in the country. ADB added that this was its second investment in Avaada Energy after the first round of $50 million invested in April 2019. World Bank 3 Crore for Goa to develop India’s first sand dune parks under Japan Bank for USD 482 million In the first funding for NTPC Ltd International Co- or Rs. 3,582 under Japan Bank for International operation (JBIC)’s crore Co-operation (JBIC)’s GREEN or Global Action for Reconciling Economic growth and Environment preservation initiative, India’s largest power producer today entered into foreign currency loan agreement with Japanese Government’s financial institution for JPY 50 billion (approx. USD 482 million or Rs. 3,582 crore).

ambitiousbaba.com Online Test Series

Japan Bank for $1 billion The loan will facilitate the operations of International Cooperation Japanese car companies in India. The financing will assist in Government of India’s ‘Make in India’ initiative.

Loan (September) ORGANIZATION/BANK Loan Amount PURPOSE European Investment Bank 650 million euros Kanpur’s first city metro line. (EIB) World Bank $82 million Himachal Pradesh by improving the condition, safety, resilience, and engineering standards of state road network. Asian Development Bank $500 million Delhi-Meerut Regional Rapid Transit (ADB) System (RRTS), ADB has approved a loan of $1 billion for the construction of the high speed, Delhi-Meerut Regional Rapid Transit System (RRTS). Asian Development Bank $65.5 million Construct and operate a 200-megawatt (ADB) (₹466-crore) alternating current solar photovoltaic- based power plant at Raghanesda Solar Park in India’s western state of Gujarat. Through ENGIE group Asian Development Bank $300 million Water supply and sanitation infrastructure (ADB) (₹2200 cr.) and services in secondary towns of Rajasthan. Asian Development Bank $270 million Water supply and integrated storm water and (ADB) (about Rs 1,988 sewage management infrastructure in Madhya crore) Pradesh.

August 2020 ORGANIZATION/BANK Loan Amount PURPOSE Asian Development Bank Dollar 200 The Asian Development Bank (ADB) has (ADB) million signed a dollar 200 million financing deal with the Reliance Bangladesh LNG and Power Limited (RBLPL) to build and operate a 718 megawatt combined-cycle gas-fired power plant in Bangladesh. ADB $1 billion loan support construction of the modern, high-speed Delhi–Meerut Regional Rapid Transit System. Asian Infrastructure USD 500 million Purpose: Mumbai Urban Transport Project- Investment Bank (AIIB) III to improve the network capacity, service quality and safety of the suburban railway system in Mumbai.

July 2020

ambitiousbaba.com Online Test Series

ORGANIZATION/BANK Loan Amount PURPOSE Asian Development Bank USD 3 million Asia Pacific Disaster Respond Fund. The (ADB) bank has provided the grant to support India’s emergency response to the COVID-19 pandemic. World Bank USD 400 million for rejuvenating Ganga (about Rs 3,000 crore) World Bank USD 750 million MSMEs to increase liquidity access for viable small businesses impacted by COVID-19. ♦May 2020 ORGANIZATION/BANK Loan Amount PURPOSE World Bank $250 million For two projects to help low-income groups in the state get access to affordable housing in Tamilnadu. $200 million First Tamil Nadu Housing Sector Strengthening Programme and $50 million Tamil Nadu Housing and Habitat Development Project World Bank USD 500 million To improve quality and governance of (about Rs 3,700 school education in six Indian states. crore) The board approved a loan for Strengthening Teaching-Learning and Results for States Program (STARS) on June 24, 2020. AIIB USD 750 million Help the government strengthen its (around Rs 5,714 battle against the adverse impact of crore) Covid-19 on poor and vulnerable households. World Bank Rs. 1,950 crore W. Bengal Govt for tackling COVID situation France 200 million euros Support Delhi’s Covid response

♦May 2020 ORGANIZATION/BANK Loan Amount PURPOSE World Bank USD 400 million Improve coastal resources in India AIIB USD 500 million “COVID-19 Emergency Response and Health Systems Preparedness Project” AIIB USD 145 million Improve irrigation services in West Bengal ADB USD 177 million To upgrade 450 kilometers (km) of state highways and major district roads in the state of Maharashtra

♦April 2020 ORGANIZATION/BANK Loan Amount PURPOSE ADB 346 million Provide reliable power connection (around Rs 2,616 in rural areas of Maharashtra. crore)

ambitiousbaba.com Online Test Series

ADB USD 1.5 billion Help fund its fight against (about Rs 11,400 coronavirus pandemic. crore) Asian Infrastructure $500 million Help the country improve its health Investment Bank (AIIB) care systems. With this, AIIB has doubled its funds under the COVID-19 Crisis Recovery Facility.

World Bank 82 million US For Himachal Pradesh State Roads dollars (585 crore Transformation Project. The World rupees) Bank has approved 82 million US dollars (585 crore rupees) for the Himachal Pradesh State Roads Transformation Project (HPSRTP) for upgradation of major roads and modernization of the Public Works Department in the state. ADB $60m The Asian Development Bank (ADB) has signed an agreement to lend up to $60 million to Aavas Financiers Ltd , a housing finance company in India, to improve access to housing finance for lower- income borrowers, particularly women. ♦March 2020 ORGANIZATION/BANK Loan Amount PURPOSE World Bank $80 million Govt of Himachal Pradesh for improve water management practices Aims: The aim is to improve water management practices and increase agricultural productivity in selected Gram Panchayats in Himachal Pradesh ADB $100 million Asian Development Bank (ADB) on 30th March announced a USD 100 million funding for the Indian infrastructure sector through the government- promoted NIIF. The ADB will be investing in the National Investment and Infrastructure Fund’s (NIIF) “fund of funds” which will ensure that the actual money invested will be a few times more than the USD 100 million.

Chapter 4: Merger and Acquires (October)

ambitiousbaba.com Online Test Series

Merger Company About Infosys to acquire Blue Acorn iCi Infosys, an IT services major, said it will acquire Blue Acorn iCi, an Adobe Platinum partner in the US, and a provider in digital customer experience, commerce and analytics for up to $125 million. Buy Stake in Reliance Retail • GIC- Rs 5,512.5 crore (1.22%) • TPG- Rs 1,837.50 crore (0.41%) • Mubadala Investment- Rs 6,247.5 crore (1.40%) • Silver Lake Partners- Rs. 7500cr. (1.75%) • US buyout firm KKR & Co - Rs 5,550 crore (1.28%) • General Atlantic- Rs 3,675 crore (0.84%) • Silver Lake co-investor-Rs 1,875 crore (0.38%)

September Merger Company About TikTok to merge with Oracle Byte Dance a Chinese Company which owns a popular video-sharing app called TikTok in its recent merger deals choose Oracle a US- based firm. Infosys to buy Czech consultancy firm IT firm Infosys annunced it signed a GuideVision definitive agreement to acquire GuideVision, an enterprise service management consultancy for up to 30 million euros including earn-out and bonuses. Infosys acquires product design firm Global software major Infosys 3rd Kaleidoscope Innovation September announced it has acquired U.S.- based product design firm Kaleidoscope Innovation for $42 million to expand its engineering service offerings in medical devices, consumer and industrial markets across America. Reliance Retail Ventures Stake Silver Lake - 1.75% stake (7500cr.) KKR- 1.28% equity (5500 cr.) (August) Merger Company About Reliance Retail acquires Future Group’s Reliance Retail Ventures Ltd (RRVL), a retail business subsidiary of Mukesh Ambani-controlled Reliance Industries Ltd (RIL), has acquired Future Group’s retail and wholesale

ambitiousbaba.com Online Test Series

business, and logistics and warehousing business for ₹24,713 crore. Adani Group to acquire 74% stake in Gautam Adani-led Adani Group is set to Mumbai International Airport acquire a 74 per cent stake in Mumbai International Airport (MIAL), which operates the country’s second-largest airport, with the current operator settling its disputes with its minority partner and exiting the venture. ICICI Lombard to acquire Bharti AXA General Bharti AXA’s non-life insurance business will Insurance merge with ICICI Lombard’s general insurance business through a scheme of arrangement. Bharti Enterprises currently owns 51 per cent stake in Bharti AXA General Insurance, while French insurer AXA has 49 per cent. Reliance Retail acquires majority stake in Reliance Industries Limited through its Netmeds wholly-owned subsidiary Reliance Retail Ventures Limited (RRVL) has acquired majority equity stake in Chennai-based Vitalic Health Pvt. Ltd. and its subsidiaries (collectively known as ‘Netmeds’) for approximately ₹620 crores in cash. LIC acquires 5% stake in YES Bank LIC purchased 105.98 crore shares, reflecting 4.23 per cent stake. Prior to this, LIC had 0.75 per cent stake in Yes Bank though 19 crore shares held. LIC holding in the bank increased to 4.98 per cent through 125 crore shares held.

July 2020 Merger Company About RELIANCE JIO STAKE SALE RELIANCE JIO STAKE SALE Face Book Stake : 9.99%, Investment : $5.7 Billion ( 43,574 Crore) SILVER LAKE • Stake : 1.15%, Investment : $747 Million ( 5,655.75 Crore) + Stake: 0.93%, Investment: $600 million (4546.80cr. ) VISTA •Stake : 2.32%, Investment : $7.95 Billion ( 11,367 Crore) GENERAL ATLANTIC Stake : 1.34%, Investment : $869 Million (6,598.38 Crore) KKR Stake : 2.32%, Investment : $7.95 Billion (11,367 Crore) Mubadala

ambitiousbaba.com Online Test Series

Stake: 1.85%, Investment: 9,093.60cr. Abu Dhabi Investment Authority Stake: 1.16%, Investment: 5683.50cr. TPG Stake: 0.93%, Investment: 4546.80cr. L Catterton Stake: 0.39%, Investment: 1894.50cr. PIF Stake: 2.32%, Investment: 11,367cr. Intel Stake: 0.39%, Investment: 1894.50cr. Qualcomm Ventures 0.15% stake at Rs 730cr Google 7.7% stake at 33,737cr. Total: Rs. 1,52,056 crores , Stake: 32.94% KKR to buy 54% Stake in JB Chemicals and Global investment firm KKR will buy a 54% Pharmaceuticals equity stake in JB Chemicals and Pharmaceuticals, a Mumbai based pharmaceutical major for Rs 3,109 crore. UltraTech's Subsidiary To Sell Entire Stake In Krishna Holdings, a subsidiary of UltraTech Chinese Cement Firm Nathdwara Cement, will sell its entire 92.5 per cent stake in China's Shandong Binani Rongan Cement for around $129 million. UltraTech Nathdwara Cement is a subsidiary of the UltraTech Cement.

June 2020 Yes Bank acquires 24.19% stake in Dish TV Yes Bank Ltd acquired a 24.19% stake in direct-to-home service provider, Dish TV India Ltd, by invoking pledges against 44.53 equity shares kept as collateral with the private lender for a loan. Adani Power to acquire US-based AES' 49% Adani Power will purchase a 49 percent stake in Odisha Power equity stake in Odisha Power Generation Corporation (OPGC) for $135 million (around Rs 1,019 crore) from US-based The AES Corporation's, the company announced on June 23. The Odisha government holds the balance 51 percent stake in OPGC.

May 2020 Merger Company About ITC to acquire 100% equity share capital of ITC Limited has entered into a Share Sunrise Foods Purchase Agreement (SPA) on May 23, 2020 to acquire 100% of the equity share capital of Sunrise Foods Private Limited (SFPL), a

ambitiousbaba.com Online Test Series

company primarily engaged in the business of spices under the trademark ‘Sunrise’, subject to fulfilment of various terms and conditions as specified in the SPA. Ola Electric acquires Etergo, to launch Ola Electric on 27th May acquired the electric two-wheeler Netherlands-based Etergo BV, an innovative electric scooter company known for its award-winning AppScooter for an undisclosed sum, and announced its foray into the premium electric two-wheeler market, both globally and nationally. RITES signs pact to acquire 24% stake in State-owned RITES Ltd on 22nd May has Indian Railway Station Development signed an agreement to buy 24% stake in Indian Railway Station Development Corp. Ltd, (IRSDC), the company tasked with redeveloping railway stations across the country. 100% acquisition of Emami Cement by The Competition Commission of India (CCI) NVCL has approved acquisition of 100% of the total issued and paid up share capital of Emami Cement Limited (ECL), on a fully diluted basis, by Nuvoco Vistas Corporation Limited (NVCL). Carlyle to buy 74% stake in SeQuent The US based private equity firm The Carlyle Group has agreed to acquire 74% stake in SeQuent Scientific Limited, the largest pure-play animal healthcare company in India, for $210 million (Rs.1587 crore). Polycab India buys 50% stake in Ryker from Polycab India (PIL) on 2 May 2020 announced Trafigura that it has signed an agreement with Trafigura, Singapore, to acquire 50% stake in Ryker Base thereby terminating the existing joint venture. Manulife picks 49% stake in Mahindra AMC Mahindra & Mahindra Financial Services (Mahindra Finance) on 29th April announce global financial services group Manulife has acquired 49 per cent stake in its wholly- owned subsidiary Mahindra Asset Management Company. invested $35 million or Rs 265 crore BP Global’s 49% acquisition of Reliance BP The Competition Commission of India (CCI) Mobility Limited has approved the proposed combination between BP Global Investments Ltd and Reliance BP Mobility Ltd (RBPML) under Section 31(1) of the Competition Act 2002. Acquisition of 100% shares and control of The Competition Commission of India (CCI) Tech Data Corporation by Tiger Midco LLC approves the proposed acquisition of 100% shares and control of Tech Data Corporation by Tiger Midco LLC.

ambitiousbaba.com Online Test Series

Chapter 5: Budget 2020 & Atma nirbhar Package Budget 2020 Purpose Amount

Agriculture and allied activities 2.83 lakhs cr Trnasfort Infra 1.7 lakhs cr Defence pension 1.33 lakhs cr. Education ++ skill development 99300+3000 cr. Welfare of SCs and ObCs 85000 Cr. Healthcare 69000cr. Welfare of STs 53,700 Nutrition Programme 35600cr. Development of J&K 30,757cr. Women-specific proframmes Decelopment of Industry 28600+ 27300 cr. & Commerce

Power & Renewable energy 22000cr. Swachh bharat Mision 12,300cr. Sr. Citizens and Divyang 9500cr. Bharat Net Program 6000cr. Development Of Ladakh 5958 cr. Clean Air 4400 Minstry of Culture 3150cr. National Mission on Quantum Computing and Rs 8,000 crore Technology

Tourism promotion 2500cr. hosting G20 presidency in 2022 100cr. FY21 divestment target 2.1 lakhs Cr.

ambitiousbaba.com Online Test Series

piped water supply to households 3.6 lakhs Cr. National Textile Mission 1480 cr.

• 5 archaeological sites to be developed with on-site museums o Rakhigarhi, Haryana. o Hastinapur, Uttar Pradesh. o Sivasagar, Assam. o Dholavira, Gujarat. o Adichanallur, Tamil Nadu • Those earning up to Rs 5 lakhs are exempt from paying taxes • 10% tax for everyone earning Rs 5-7.5 lakh against the current 20% • 15% tax for everyone earning Rs 7.5- 10 lakhs against current 20% • 20% tax for everyone earning Rs 10-12.5 lakhs against current 30% • 25% tax for everyone earning Rs 12.5-15 lakhs against the current 30% • Those earning more than Rs 15 lakhs get no exemptions • Additional Rs 1.5 lakh tax benefit on affordable housing loans • Rs 40,000 cr per annum will be revenue foregone from new income tax rates for individuals • 100 more airports to be developed by 2025 “Aatma Nirbhar Bharat” Package Details: In Shortcut PM announced a special economic package on 12 May. This will play an important role in the ‘Atmanirbhar Bharat Abhiyan’. The announcements made by the govt over COVID, decisions of RBI & today’s package totals to Rs 20 Lakh Crores. These reforms will focus on strengthening the infrastructure, economy and buisness in India. Aatma Nirbharta will help India to excell in the competition of global supply change and the new economic package is made keeping in mind to increase the efficiency and improve quality of all sectors. Pillars of “Aatma Nirbhar Bharat” 1. Economy- quantum jump not incremental change 2. Infrastructure- for modern India 3. System- technology driven for 21st century 4. Demography- vibrant demography as world’s largest democracy 5. Demand- optimism demand and supply chain in the economy Nirmala Sitharaman Press Conference daily basis (13th May to 17th May) and Provide Details about “Aatma Nirbhar Bharat” Package ♦Nirmala Sitharaman Press Conference Important Highlight • Tranche 1: Rs 5,94,550 crore • Tranche 2: Rs 3,10,000 crore • Tranche 3: Rs 1,50,000 crore • Tranche 4+5: Rs 48,100 crore Sub-total- 11,02, 650 • Earlier measures including PMGKP: Rs 1,92,000 crore • RBI measures: Rs 8,01,603 crore Sub-total- 9,94,403Cr. ⇒Total: 20,97,053 crore

ambitiousbaba.com Online Test Series

♦Nirmala Sitharaman First tranche (13th May) announcements (Amount -5,94,550cr.) ITEM Amount (In cr.) Collateral-free Automatic loan to the MSMEs Rs 3 lakh crore Subordinate debt for stressed MSMEs 20000 cr. Fund to fund Provide equity for MSMEs 50000cr Spl liquidity scheme for NBFCs/ HFCs/ MFIs 30000 cr. Partial Credit guarantee scheme 2.0 for Liabilities of 45000 cr. NDFCs/MFIs Govt. to pay PF for both Business & Workers 2800cr. Lower PF contribution of 10% 6750cr Power Discoms Liquidity Injection 90000cr. TDS/TCS rate cut by 25% of existing rate 50,000cr Total 5,94,550cr.

♦Nirmala Sitharaman Second tranche (14th May) announcements (Amount 3,10,000cr.) ITEM Amount (In cr.) Free Food grain supply to Migrant Workers for 2 Months 3500cr. Interest Subvention for MUDRA Shishu loan 1500cr. Special credit facility to street vendors 5000cr. Housing Clss- MIG 70000cr. Additional Emergency working capital through NABARD 30000Cr. Additional credit through KCC 200000cr. Total 3,10,000cr.

♦Nirmala Sitharaman Third tranche (15h May) announcements (Amount 1,50,000cr.) ITEM Amount (In cr.) Food Micro Enterprises 10000cr. Pradhan Mantri Mastsya Sampada Yojana 20000cr. TOP to total- operation Greens 500cr. Agri Infrastructure fund 100000cr. Animal Husbandry Infrastructure Development fund 4000cr. Beekeeping Initiative 500cr. Total 1,50,000cr.

♦Nirmala Sitharaman Fourth (16th May) & Firth (Final, 17th May) tranche announcements (Amount- 48,100cr.) ITEM Amount (In cr.) Viability GAP Funding 8100cr. Additional MGNREGS Allocation 40,000cr. Total 48,100cr.

ambitiousbaba.com Online Test Series

Chapter 6: List of Important Committee 2020

Committee (October 2020) Committee Headed by Purpose All India Council for M.S. Ananth The committee will function Technical Education (AICTE) under the chairmanship of M.S. Ananth, former director, IIT Mardas. Mr. Somaprasad had pointed out that though there were 10,396 engineering institutes in India approved by the AICTE at present, only few were imparting quality education. Recommending Policy on by Madhabi Puri Buch Recommend appropriate policy Market Data Access for access to securities market data, identify segment wise data perimeters, data needs and gaps, recommend data privacy and data access regulations applicable to market data.

Committee (September 2020) Committee Headed by Purpose Government gives one-year Rajesh Verma Functioning of the National extension to Company Law Company Law Tribunal Committee (NCLT) and make recommendations on various issues pertaining to implementation of the Companies Act as well as the Limited Liability Partnership Act. National Cyber Security Rajesh Pant The expert committee, led by Coordinator to study the Lt Gen (retd) Rajesh Pant, revelations in China India’s chief coordinator on Watching cyber security, will evaluate the “implications” of the digital surveillance by Data Information Technology Co. Limited and “assess any violations of law and submit its recommendations within thirty days.” Assessment of relief to bank Former CAG Rajiv Mehrishi Will measure the impact on the

ambitiousbaba.com Online Test Series

borrower national economy and financial stability of waiving of interest and COVID-19 related moratorium. It will also give suggestions to mitigate financial constraints of various sections of society in this respect and measures to be adopted in this regard. NITI Aayog preparing Ms Sanyukta Samaddar “Global Indices to Drive Multidimensional Poverty Reforms and Growth (GIRG)” index exercise is to fulfil the need to measure and monitor India’s performance on various important social and economic parameters and enable the utilisation of these Indices as tools for self-improvement, bring about reforms in policies, while improving last-mile implementation of government schemes.

August 2020 Committee Headed by Purpose Setting Parameters for Loan KV Kamath RBI on the required financial Restructuring parameters, along with the sector specific benchmark ranges for such parameters, to be factored into resolution plans. The expert committee will also undertake a process validation of resolution plans for borrowal accounts above a specified threshold." Plan to develop international Pradip Shah Centres Authority (IFSCA) set retail business up a panel of industry experts to formulate a plan to develop international retail business at the International Financial Services Centre (IFSC). The committee will be chaired by Pradip Shah, chairman at Indasia Fund Advisors. Fix ceiling rates under duty Chaired by Secretary (retd) G K The reimbursement of taxes reimbursement scheme for Pillai. under the Remission of Duties exporters and Taxes on Export Products (RoDTEP) such as duty on

ambitiousbaba.com Online Test Series

power charges, VAT on fuel in transportation, farm sector, captive power generation, mandi tax, stamp duty and central excise duty on fuel used in transportation would make Indian products competitive in global markets. Kozhikode plane crash Captain S S Chahar The Aircraft Accident Investigation Board (AAIB) said it has formed a five- member panel to inquire into the circumstances of a plane crash in Kerala's Kozhikode airport. Sugarcane Prices to Sugar Rate Ramesh Chand Niti Aayog Member(Agriculture), “Sugarcane and Sugar Industry” recommended linking of Sugarcane prices to sugar rate to maintain the financial state and stability of the industry and to clear the arrears of the sugarcane farmers. Dividend of ₹57,128 crore to Shaktikanta Das Reserve Bank of India on government. 13th August approved dividend of ₹57,128 crore to government. The decision was taken when the Central Board of the RBI met on 13th August under the chairmanship of Governor Shaktikanta Das through video conference Business Responsibility Rajesh Verma The Corporate Affairs Reporting (BRR) Ministry (MCA) will work closely with capital markets regulator SEBI for implementation of the ‘Business Responsibility and Sustainability Report (BRSR)’ framework in the country. July 2020 Committee Headed by Purpose Violation of environment rules. Anil Kumar Jha The panel appraises projects that are commissioned without obtaining prior environmental clearance and

ambitiousbaba.com Online Test Series

have been termed as cases of violation. The panel was earlier constituted in June 2017 for three years. Its tenure has now been extended till June 2021. Analysis of QR (Quick Response) Prof. Deepak.B. Phatak The report has recommended making Code’ QR codes more interoperable. QR code is used to pay utility bills, fuel, grocery, food, travel, and several other categories. National Financial Reporting Professor R. The members of the committee will Authority Narayanaswamy support and provide insights to the Executive body of the NFRA on the issues related to the drafts of the accounting and auditing standards. The committee will also provide the inputs from the perspectives of the users, preparers and auditors of the financial statements. Sebi rejigs advisory Usha Thorat The Securities and Exchange Board of India (Sebi) has revamped its committee that advises the capital markets regulator on matters related to regulation and development of mutual fund industry. Note: Earlier in 2013, the panel had 15 members and was headed by Janki Ballabh, former Chairman of SBI. ‘Pandemic Risk Pool’ Suresh Mathur “The Covid-19 pandemic, which started as a public health crisis, has led to a significant disruption in the economic activity mainly due to measures taken to stop the spread of the disease,” TL Alamelu, Member, Non-Life, Irdai, said in an order. Human rights and future K S Reddy The expert committee would assess the response of the government. impact of Covid-19 on human rights of people, especially marginalised and vulnerable sections of the society, including migrant labourers. Find space for selling Surety G. Srinivasan. The IRDAI has set up the committee after Bonds the Ministry of Road Transport and Highways requested it to examine the possibility of offering Surety Bond for contractors. National level Ranbir Singh The committee, which has several committee for reform in leading legal academicians on board, criminal law would be gathering opinions online, consulting with experts and collating

ambitiousbaba.com Online Test Series

material for their report to the government.

June 2020 Committee Headed by Purpose IBBI advisory committee on T V Mohandas Pai The 12-member panel would service providers advise and provide professional support on regulation and development of the service providers dealt with by the IBBI , according to an order. The service providers include insolvency professionals, insolvency professionals agencies, insolvency professional entities and information utilities. MSME loan scheme Defence Minister Rajnath Singh To resolve any problem in the implementation implementation of the Rs 3 lakh crore collateral-free loan scheme for MSMEs. Welfare of freedom fighters G Kishan Reddy The ministry has a separate division to serve freedom fighters who are alive and their families. It disburses pension to about 30,000 freedom fighters and their families. Review private bank RBI executive director PK The group will examine the shareholding norms Mohanty existing licensing guidelines and regulations on ownership and control of private sector banks. Trustees of PM CARES Sunil Kumar Gupta Trustees of the PM CARES Fund have appointed SARC & Associates as auditor of the fund. IBBI reconstitutes advisory Uday Kotak This Advisory Committee will panel on corporate insolvency advise and provide professional resolution process support— on a request from the IBBI or on its own volition—on any matter relating to the Corporate Insolvency resolution and liquidation dealt with by the Board under the Insolvency and Bankruptcy Code 2016. Sebi panel suggests measures to headed by former Supreme Purpose: The committee has strengthen enforcement, Court Judge Anil Dave examined the insolvency, recovery recovery mechanism and securities laws jurisprudence of India and abroad and suggested suitable changes in the Insolvency and Bankruptcy Code to ensure

ambitiousbaba.com Online Test Series

that insolvency law is not used as a refuge by defaulters, thereby protecting the interest of investors. Assam Gas Leak Justice BP Katakey The National Green Tribunal has imposed an interim penalty of Rs 25 crore on PSU major Oil India over its failure to stop fire in Assam’s Baghjan oil well resulting in damage to the environment. May 2020 Committee Headed by Purpose Reforms in India’s drug Rajesh Bhushan A high-level committee of regulatory system experts has been formed by the government to recommend reforms in India’s drug regulatory system so that approval processes can be fast- tracked. Banning on the use of saliva to Anil Kumble The International Cricket Council’s shine the ball (ICC) Cricket Committee has recommended banning on the use of saliva to shine the ball. The practice meant for swing bowling is now primarily held as health risk due to the threats of COVID- 19 and protect the safety of players and match officials. Border Infrastructure Lt General D B Shekatkar (Retd) These were related to speeding up road construction, leading to socio economic development in the border areas. Vizag gas leak Neerabh Kumar Prasad The Andhra Pradesh government on 16th may constituted a five- member High-Power Committee to probe into the causes behind the leakage of styrene gas from the LG Polymer plant at RR Venkatapuram in Visakhapatnam. 4G internet services in J&K Ministry of Home Affairs SC A bench comprising Justices N V Ramana, Justices R Subhash Reddy and B R Gavai said the committee would also include the Chief Secretary of the UT and the Secretary of Ministry of Communications to look into the demands by petitioners seeking restoration of 4G internet speed there.

ambitiousbaba.com Online Test Series

Parliament’s Public Accounts Adhir Ranjan Chowdhury Members of the public accounts Committee committee are elected every year. The 22-member panel includes 15 members from the Lok Sabha and seven from the Rajya Sabha. Works: The PAC examines accounts showing the appropriation of sums granted by Parliament for the expenditure of the Government of India, the annual financial accounts of the Government, and others. Examine the comments The Ministry of Corporate Purpose: The committee will received on the consultation Affairs (MCA) has constituted a examine the comments and make paper floated seven-member committee to recommendations requiring any examine the comments received amendments in law, rules and on the consultation paper standards to achieve the objective floated by it for enhancing audit of enhancement of audit independence and accountability independence and accountability. in the country. The panel has been asked to submit its report by 30 June 2020. Reconstitutes National Shipping headed by ex-DG Shipping The government has approved Board Malini Shankar reconstitution of the National Shipping Board to be headed by former Director General of Shipping Malini Shankar, an official said. The National Shipping Board (NSB) is the highest advisory body on matters related to Indian shipping including the development there of and on such other matters arising out of the Merchant Shipping Act.

Chapter 7- Bank Name & CEO of Bank & Headquarter & Tagline • Total PSBs: 12 • Total Pvt. Bank: 22 • Total RRBs: 43 • Foreign Banks: 44 • Payment & Small Financial Banks: 16 Public Sector Bank Bank Name CEO of Bank Headquarter Tagline

ambitiousbaba.com Online Test Series

Bank of Baroda Sanjiv Chadha Vadodara India’s International Bank Bank of India Atanu Kumar Das Mumbai Relationships beyond Banking Bank of A. S. Rajeev Pune One Family One Maharashtra Bank Canara Bank Lingan Venkat Prabhakr Bangalore Together we can

Central Bank of Pallav Mahapatra Mumbai Central To you India Since 1911, Build A Better Life Around Us Indian Bank Padmaja Chunduru Chennai Your Tech-friendly bank Indian Partha Pratim Sengupta Chennai Good people to Overseas Bank grow with Punjab & Sind S Krishnan New Delhi Where Service Is Bank A Way Of Life Punjab Mallikarjuna Rao New Delhi The Name you National Bank can Bank Upon State Bank of Rajnish Mumbai With you all the India Kumar (Chairman) way, Pure Ashwani Bhatia (MD) Banking Nothing Else, The Nation’s banks on us UCO Bank Atul Kumar Goel Kolkata Honors Your Trust

Union Bank of Rajkiran Rai G. Mumbai Good people to India bank with

Private & foreign Bank

Bank name Headquarter Head/ CEO/ MD Tagline Axis Bank Mr Amitabh Choudhary Badhti Ka Naam Zindagi Mumbai Bandhan Bank Kolkata Mr Chandra Shekhar Aapka Bhala, Sabki Bhalai Ghosh Catholic Syrian Bank Thrissur, Kerala Shri C.VR. Rajendran Support All the Way Central Bank of India Mumbai Pallav Mohapatra Build a better life around us City Union Bank Tamil Nadu Dr.N Kamakodi Trust and Excellence Corporation Bank Mangalore P.V. Bharathi Prosperity for All

ambitiousbaba.com Online Test Series

Dena Bank Mumbai Shri. Karnam Shekhar Trusted Family Bank Dena Hai Toh Bharosa Hai Development Credit Tamil Nadu Shri Murali N. Natrajan We value you Bank Dhanlaxmi Bank Thrissur, Kerala Sunil Gurbaxani Tann.Mann.Dhan ECGC Bank Mumbai Geetha Muralidhar You Focus On Exports We Cover The Risks Federal Bank Kerala Shri Shyam Srinivasan Your Perfect Banking Partner HDFC bank Mumbai Mr Sashidhar Jagdishan We Understand Your World HSBC London Noel Quinn The World’s Local Bank ICICI Bank Mumbai Mr Sandeep Bakshi Hum Hai Na, Khayal Apka IDBI Bank Mumbai Rakesh Sharma Banking For All, “Aao Sochein Bada”, Bank Aisa Dost Jaisa IDFC First Bank Mumbai Mr.V.Vaidyanathan Banking Hatke IndusInd Bank Maharashtra Shri Sumant Kathpalia We Care Dil Se, We Make You Feel Richer ING Vysya Bank Bart Hellemans Jiyo Easy Banglore Jammu & Kashmir Sri Nagar R K Chhibber Serving To Empower Bank (Chairman), Zubair Iqbal (MD) Karnataka Bank Mangaluru, Shri Mahabaleshwara Your Family Bank Across Karnataka M.S India Karur Vysya Bank Karur, Tamil Nadu Shri Ramesh Boddu Smart Way to Bank Kotak Mahindra Bank Mumbai, Shri Uday Kotak Let's Make Money Simple, Ab Maharashtra Kona Kona Kotak Lakshmi Vilas Bank Chennai, Tamil Shri Subramanian The Changing Phase of Nadu Sundar Prosperity Nanital Bank Nanital, Shri Mukesh Sharma Banking With Personal Touch Uttrakhand Ratnakar Bank Mumbai, Shri Vishwavir Ahuja Apno ka Bank Maharashtra South Indian Bank Thrissur, Kerala Murali Ramakrishnan Experience Next Generation Banking Syndicate Bank Manipal Mr Mrutyunajay Faithful and Friendly Mahapatra Tamilnadu Mercantile Thoothukudi, Shri Thiru K.V. Rama ---- Bank Tamil Nadu Moorthy Vijaya Bank Bangalore Shri R.A. Sankara A Friend You Can Bank upon Narayanan Yes Bank Ltd Mumbai, Ravneet Gill Experience Our Expertise Maharashtra

Chapter 8: Partnership/ Agreement (October)

ambitiousbaba.com Online Test Series

Partnership/ Agreement Aims BSE signs MoU with ICCI Stock exchange BSE on 25th October announced it has signed an agreement with Inventivepreneur Chamber of Commerce and Industries (ICCI) to support small and medium enterprises (SMEs) and start-ups, and promote their listing on the exchange.

September 2020 Partnership/ Agreement Aims SBI Life Insurance inks pact with Yes Bank Sell insurance policies BHEL ties up with SwissRapide AG To bring Maglev high-speed trains to India Rajasthan and Gujarat government signs Develop the MSME ecosystem in the state. pact with Sidbi SBI General Insurance and YES Bank The general insurer’s retail products to its customers. ICICI Lombard announces bancassurance “The partnership will provide the bank’s diverse tie-up with Yes Bank customer base access to the insurer’s portfolio and make insurance more accessible to its customers across India. it aims to offer innovative insurance solutions to the bank’s customers across the country. ADB, Suguna Foods sign The ADB on 12th September annouced it has signed a pact for a USD 15-million debt financing through the subscription of non- convertible debentures for Suguna Foods, to help sustain poultry farming operations, rural livelihoods and food security in India during the COVID-19 pandemic. TPT South Africa partners with TCS Help the latter develop an integrated online marketplace platform by bringing together cargo owners, shipping lines, clearing and forwarding agents, and road/rail haulers. WhatsApp and Cyber Peace Foundation For cyber security The partners aim to reach partner about 15,000 students in five Indian states, including Delhi, Madhya Pradesh, Bihar, Jharkhand, and Maharashtra by the end of this year, under the first phase of a pan-India programme. Vedanta ties up with SBI For a long-term syndicated loan facility worth Rs 10,000 crore.

(August 2020)

ambitiousbaba.com Online Test Series

Partnership/ Agreement Aims Ericsson & UNICEF Partnered Map internet connectivity landscape for schools in 35 countries by the end of 2023 to provide digital learning access to the children. SBI partners with AddaCorner Aim of boosting the real estate sector in Bengaluru, the Carnival will invite all prospective home-buyers to virtually come together as a group to team up and directly connect and negotiate with empaneled real estate sellers, on real-time basis. KVG Bank inks pact with SBI General Karnataka Vikas Grameena Bank (KVGB) has Insurance signed a Memorandum of Understanding (MOU) with SBI General Insurance Co. Ltd. for selling general insurance products through its branches. Flipkart partners with Nepal's Sastodeal Flipkart has partnered with Nepal’s leading e- commerce firm Sastodeal to sell products from various verticals like baby care & kids, women’s ethnic wear and sports & fitness among others in the neighbouring country. Maruti Suzuki partners with IIM Bangalore Maruti Suzuki India said this partnership will help startups working in technology-based innovations that can be applied in the mobility sector. AP Govt Signed MoU with Reliance Retail, Jio Andhra Pradesh(AP) government has signed and Allana Group an Memorandum of Understanding(MoU) with Reliance Retail, Reliance Jio Infocomm and Allana Group to empower women and help women Self-Help Groups(SHGs) in the state to market their products.

Reliance Foundation partners with USAID To bridge gender digital divide in India Purpose: “The W-GDP Fund was created to source and scale the most innovative programmes to advance women’s economic empowerment. Flipkart signs MoU with UP government's E-commerce marketplace Flipkart has signed a memorandum of understanding (MoU) with the One District, One Product (ODOP) scheme of the Uttar Pradesh government to bring artisans, weavers and craftsmen into mainstream business. Airtel Payments Bank ties up with Bharti Airtel Payments Bank announced that it will AXA General Insurance offer Shop Insurance exclusively for its Retailers and Merchants. Offered in partnership with Bharti AXA General Insurance,. Maharashtra govt and Google tie-up The Maharashtra government on 6th August

ambitiousbaba.com Online Test Series

announced a partnership with Google that will enable 2.3 crore students and teachers to access the technology giant's blended learning programmes that combine classroom approach with online learning. Bharti AXA Life partners with SBM Bank Bharti AXA Life Insurance on 18th August announced its bancassurance partnership with SBM Bank India. Under this agreement, the insurer will offer its life insurance products, including protection, health, savings and investment plans, to customers of SBM Private Wealth, the retail banking arm of SBM Bank India. HDFC Bank partners Adobe HDFC Bank has announced a strategic partnership with Adobe to help improve digital experience journey of its customers Reliance General Insurance partnership Reliance General Insurance has announced Bharat Bill their association with National Payment Corporation of India (NPCI), launching a platform for making insurance premium payments digitally through Bharat Bill Payment System. AP govt ties up with ITC, HUL and P&G The Andhra Pradesh government on 3rd August signed a pact with three FMCG companies -- Hindustan Unilever Ltd (HUL), ITC and Procter and Gamble (P&G) -- for marketing and technology support for economic empowerment of women under two new schemes to be launched soon. Bharti Airtel inks with Amazon Bharti Airtel on 5th August announced a multi-year strategic pact with Amazon Web Services (AWS) – the cloud services arm of the retail giant – to deliver Cloud solutions to large as well as small and medium enterprise (SME) customers in India. 50:50 strategic partnership.

(July 2020) Partnership/ Agreement Aims PFC signs agreement with IIT-Kanpur for research, training in smart grid technology GAIL and CCSL sign MoU for partnership GAIL (India) and Carbon Clean Solutions (CCSL) have signed a Memorandum of Understanding (MoU) for exploring project development opportunities in Compressed Biogas (CBG) value chain in India. IRCTC of Indian Railways and SBI launch Co-branded Contactless Credit Card on RuPay Platform Amazon Pay joins hands with Acko Amazon Pay, the payments arm of e-

ambitiousbaba.com Online Test Series

commerce giant Amazon India, has partnered Acko General Insurance Ltd to offer insurance for two- as well as four-wheelers. The Asian Development Bank (ADB) and the Aims: Under Strategy 2030, ADB will ensure that Green Climate Fund (GCF) 75% of its committed projects will support climate change mitigation and adaptation by 2030. India-European Union sign Agreement On Scientific and Technological Cooperation for the next five years (2020-2025). LIC signs agreement with UBI Corporate Agency Tie-up by which LIC policies will be distributed through the bank. Andhra Pradesh signs MoU with AMUL to help Women Self Help Groups boost milk cooperatives CBIC and CBDT sign MoU Central Board of Direct Taxes (CBDT) and the Central Board of Indirect Taxes and Customs (CBIC) on 21st July data exchange between the two organisations. CBDT signs MoU with MSME ministry facilitate the process of data exchange CBSE Collaborates with IBM To Artificial Intelligence (AI) in the high school curriculum (Grade XI & XII) for the current academic year (2020 – 2021). UNICEF INDIA announced its partnership UNICEF’s#Reimagine Campaign to support the with FICCI most vulnerable populations and children during the COVID-19 response and its after- math in India. Visa Partners With Federal Bank E-Commerce Memorandum of Understanding (MoU) For data exchange between the two between CBDT and SEBI signed organizations.

MoU signed between Indianoil, NTPC Ltd, For Waste to Energy plant in Delhi and SDMC Karur Vysya Bank partners with Star Health Health insurance products to its customers. Insurance CBSE partners with Facebook Curriculum on digital safety and online well- being and Augmented Reality for students and educators. Railways, BHEL tie up For solar power generation, The project is of 1.7 MWp (megawatt peak) at Bina (Madhya Pradesh) which shall be connected directly to Overhead Traction System.

(June 2020) Partnership/ Agreement Aims Wipro partners with IBM Wipro has partnered with IBM to help customers embark on a hybrid cloud migration journey. Maruti partners with Karur Vysya Bank Car market leader Maruti Suzuki India (MSI) on 16th June announced it has partnered with

ambitiousbaba.com Online Test Series

Karur Vysya Bank to offer simpler and flexible financing schemes for new customers. Hyundai Motor India partners with HDFC offer online car loans on Click to Buy Bank UCO Bank partners with four insurers The lender teamed up with SBI Life Insurance Company, the Oriental Insurance Company and Religare Health Insurance Company, Star Health and Allied Insurance Company for selling their products. Indian Railways signs MoU with RailTel For providing Video Surveillance System (VSS) work at 6049 stations of Category A1, A, B, C ,D& E of Indian Railways. Yes Bank partners with UDMA Private lender Yes Bank has joined hands with UDMA technologies to unveil digital wallet solution 'Yuva Pay'. This new product from the lender will help the customers with contactless payments. The digital wallet is issued under minimum KYC regulations to Yes Bank. PhonePe partners with ICICI Bank Flipkart-owned PhonePe it has partnered with ICICI Bank on UPI multi-bank model, giving its users the option to create and use multiple UPI IDs with ICICI and Yes Bank''s handles.

(May 2020) Partnership/ Agreement Aims Vakrangee ties up with LIC Vakrangee Ltd said on 27th May it has tied up with Life Insurance Corporation of India (LIC) to distribute micro insurance products in unserved and underserved areas through its centres across the country. Fintech startup Zaggle joins hands with Visa Aims: This partnership is aimed at helping SMEs and startups improve productivity, reduce costs and get access to faster credit through a card which would have both inbuilt forex and prepaid. Infosys partners with Avaloq Infosys said it partnered with Avaloq, a wealth management software and digital technology provider headquartered in Switzerland, to provide end-to-end wealth management capabilities through digital platforms. Maruti Suzuki ties-up with Cholamandalam The country's largest carmaker Maruti Suzuki Investment & Finance India on 22nd May announced partnership with Cholamandalam Investment & Finance Company Ltd to provide customised auto retail financing solutions to retail buyers. The new solution 'Buy-Now-Pay-Later Offer' is aimed to provide customers with easy

ambitiousbaba.com Online Test Series

financing options, Maruti Suzuki India (MSI). ONGC & NTPC sign MOU Aims: "As per the MoU, NTPC and ONGC will explore and set up renewable power assets including offshore wind, in India and overseas, and explore opportunities in the fields of sustainability, storage, e-mobility and ESG (Environmental, Social and Governance) compliant projects Flipkart Partners With Vishal Mega Mart E-commerce marketplace Flipkart on 20th May announced a partnership with Vishal Mega Mart retail store chain to facilitate the delivery of essentials at consumers' doorstep in 26 cities across the country. UNICEF and Airtel Africa announce Under this partnership, UNICEF and Airtel partnership Africa will use mobile technology to benefit an estimated 133 million school age children currently affected by school closures in 13 countries across sub-Saharan Africa during the COVID-19 pandemic. Flipkart ties up with Bajaj Allianz General Flipkart and Bajaj Allianz General Insurance Insurance Company have partnered to offer a digital motor insurance policy to customers of the e- commerce major. Federal Bank and MoneyGram tie up MoneyGram Payment Systems has tied up with Federal Bank to offer a cost-effective direct-to- bank account credit option for customers in India.

Chapter 9: Ranking Index Index Index released India’s 1st Rank by Rank Forbes India Rich List Forbes Magazine 1) Mukesh Ambani; 2020 US$88.7 billion (Update 7th Oct) 2) Gautam Adani; $25.2 billion 3) Shiv Nadar; $20.4 billion Oxfam’s Commitment International 129th Rank 1:Norway to Reducing charitable 158th: South Sudan Inequality (CRI) organisation ‘Oxfam (Bottom) Index 2020 International’ in (Update 13th Oct) partnership with Development Finance International and with inputs from independent experts.

ambitiousbaba.com Online Test Series

Arton Capital's by global financial 58th New Zealand Passport Index 2020 advisory firm Arton Capital. Global hunger index Welhunger life and 94th 2020 Concern Worldwide (Update 17th Oct)

Most powerful Sydney-based Lowy 4th 1-US country in Asia Power Institute 2-China Index 2020 3-Japan (Update 19th Oct) Anemia Mukt Bharat National Health Top -Haryana Index Mission (Update 22nd Oct) World’s Best Forbes Top industry Top- Samsumg Employer 2020 (India) –HCL 2nd –Amazon (30th globally) 3rd - IBM Banking sector- HDFC (176th Globally) Indian PSUs- NTPC FiFa Rank (Men) FIFA 109th Rank 1: Belgium Rank (Update 28th Oct) 2: France Rank 3: Brazil Global Innovation World Intellectual 48th Switzerland Index 2020 Property Organization (Updated 2nd Sep) (WIPO) Rabobank's 16th –Amul Switzerland's Nestle (Updated 6th Sep) THE World University Times Higher Indian Institute of University of Oxford Ranking 2021 Education Science, or IISc, (Updated 6th Sep) Bengaluru was placed in 301-350 overall category in the global rankings. Ease of doing 'State Business Reform Andhra Pradesh-1st business 2019 Action Plan 2019' Uttar Pradesh-2nd ranking (BARP) Telangana-3rd (Updated 8th Sep) EASE Banking Indian Banking 1st –BOB Reforms Index 2.0 Association (IBA) 2nd –SBI (Updated 12th Sep) 3rd -Oriental Bank of Commerce

ambitiousbaba.com Online Test Series

Global Economic Canada's Fraser 105th Hong Kong Freedom Index 2020 Institute (Updated 16th Sep) Global Smart City The Institute for 85th –Hyderabad Singapore Index 2020 Management 86th – New Delhi (Updated 18th Sep) Development (IMD), in 93rd- Mumbai collaboration with 95th Bengaluru Singapore University for Technology and Design (SUTD) Human Capital Index World Bank 116th 1st-Singapore 2020 2nd- Hongkong and (Updated 20th Sep) China 3rd- Japan World Risk Index United Nations 89th Vanuatu (WRI) 2020 University Institute for (Updated 27th Sep) Environment and Human Security (UNU- EHS), Bundnis Entwicklung Hilft and the University of Stuttgart in Germany. Future Brand Index PwC Global Reliance (2nd Apple 2020 Rank) (Update 4th August) Fortune's top 100 Fortune Reliance Walmart global companies Industries (96th 2020 Rank) (Update 11th August) “The Highest-Paid Forbes Akshay Kumar Dwayne Johnson Actors Of 2020” 6th Rank ($48.5 ($87.5 Million ) (Update 11th August) million) Digital Quality of Life online privacy 57th Denmark 2020 solutions provider Surf (Update 20th August) Shark Export Preparedness NITI Aayog Gujarat Index (EPI) 2020 (Update 22nd August) Global list with Picodi.com 72nd Rs 32,800 Switzerland Rs average monthly ($437) 4,49,000 ($5,989) wage Bottom- Cuba, Rs (Update 28th August) 2,700 ($36).

ambitiousbaba.com Online Test Series

Swachh Survekshan Union Urban States with over India's Cleanest cities 2020 Development Minister 100 cities : Hardeep Singh Puri Top-Chhattisgarh 1) Indore,MP States with less 2) Surat,Gujarat than 100 cities. 3) Navi Top-Jharkhand Mumbai,Maharashtra Among the towns In less than 1 lakh along the banks of population category: river Ganga 1) Karad,Maharashtra Top- Varanasi 2) Saswad,Maharashtra 3) Lonavala,Maharashtra Sustainable Teams of independent 117th Sweden Development Report experts at the 2020 Sustainable (Update-1st July) Development Solutions Network (SDSN) and the Bertelsmann Stiftung. “INFORM Report Research centre 31st Somalia 2020 INFORM, operating (Updates 8 July) under European Commission (EU) Global Real Estate 34th Transparency Index Cancer preparedness Economist Intelligence 8th Australia Index Unit (EIU) (Updates 12July) Global Manufacturing Cushman & Wakefield 3rd China Risk Index Report (Updates 16July) Billionaires Index business magazine 5th, Mr Ambani's Jeff Bezos-$185.8 (Updates 18July) Forbes wealth at $75 Billion billion Bill Gates-$113.1 Billion Bernard Arnault and family-$112 Billion Mark Zuckerberg-$89 Billion Surveilled cities UK-based Comparitech Hyderabad is Taiyuan (China) Index 16th (Updates 25th July) Chennai at 21 and Delhi ranked at 33.

ambitiousbaba.com Online Test Series

Global Forest United Nations Food 3rd China Resources and Agriculture Assessment (FRA) Organization (FAO). (Updates 28th July) Startup Ecosystem StartupBlink 23rd US Rankings Report Three key 2020 factors: Quantity, (Updated 13June) Quality and Business Environment. Forbes highest-paid Forbes Akshay Kumar Kylie Jenner celebrities 2020 (Rank 52) (Updated 6th June) THE Asia University Time Higher Education IIT-Ropar (Rank Rank 1: Tsinghua Ranking 2020 47), IIT-Indore University, China (Updated 11June) (Rank 55), IIT- Rank 2: Peking Kharagpur (Rank University, China 59) FSSAI food safety Food Safety and Among the Largest index for 2019-20 Standards Authority of smaller states, States: Gujarat has India (FSSAI) Goa came first topped following (Updated 12June) followed by by Tamil Nadu and Manipur and Maharashtra Meghalaya. Among UT Chandhigarh, Delhi and Andaman Island secured top three rank. Environmental Yale and Columbia 168th 1st: Denmark Performance Index universities 2nd: Luxembourg 2020 (Updated 9 June) 2020 Cost of Living Mercer’s Mumbai Hong Kong Survey’ World Rank: 60th (Updated 11June) Asia: 19th NIRF Rankings 2020 Ministry of Human Rank 3: Banaras Rank 1: Indian (Updated 11June) Resource Hindu University Institute of Science Development Rank 2: Jawaharlal Nehru University QS World University Quacquarelli Symonds Rank 172: IIT Massachusetts Rankings 2021 Bombay Institute for (Updated 11June) Rank 185: IISc Technology (MIT). Bangalore USA Safety and risk Deep Knowledge 56th Switzerland assessment of nations Ventures tackling Covid-19.

ambitiousbaba.com Online Test Series

(Updated 9 June)

Fifa’s Latest Ranking FIFA 108TH Belgium (Updated 12June) Nature Index 2020 Nature Research 12th United States of (Updated 12June) America NIRF Pharmacy HRD Minister, Ramesh Rank 2: Panjab Rank1: Jamia Colleges Ranking Pokhriyal University, Hamdard, New Delhi 2020 Chandigarh (Updated 12June) World Institute for 43th Singapore Competitiveness Management Index 2020 Development (IMD) (Updated 16 June) SIPRI’s Yearbook Stockholm 6th 1st: US 2020 International Peace 2nd: Russia (Updated 15 June) Research Institute 3rd: UK (SIPRI). The Swedish think-tank Most valuable firm Reliance Saudi Aramco ($ globally by market- Industries (RIL). 1,764.50 billion) cap Rank 57th ($150 (Updated 16 June) billion.) THE Young University Times Higher 62nd -IIT Ropar The Hong Kong Ranking 2020 Education (THE) 64th -IIT Indore University of Science (Updated 24 June) and Technology

Accounting money in Switzerland’s central 77th UK Swiss banks bank

Budget transparency, International Budget 53rd New Zealand accountability 2019 Partnership (IBP) (Update -1st May) Research and NSTMIS (National 3rd 1st-US Development (R&D) Science and 2nd –China Statistics and Technology Indicators 2019-20 Management (Update -4th May) Information System) Top 50 of FT IIM-Bangalore IESE Business School, Executive Education only Indian University of Navarra Ranking institute (Update -11May) (45th Rank) WEF’s global Energy Geneva-based World 74th Sweden Transition index Economic Forum 2020 (WEF)

ambitiousbaba.com Online Test Series

(Update -12th May)

Forbes top 100 Forbes Virat Kohli 1st -Roger Federer highest-paid athletes (June 1, 2019, until Rank-66th ($106.3 million) (Update -31st May) June 1, 2020) ($26 million) 2nd – Ronaldo($105 million) 3rd– great Lionel Messi($104 million) 4th– Brazil’s Neymar ($95.5 million.) World’s Highest-Paid Forbes Naomi Osaka (Japan- Female Tennis) $37.4 million 34th Forbes Forbes Mukesh Ambani 1st: Amazon Founder billionaires list 2020 is 17th position and CEO Jeff Bezos has (Update-7April 2020) with 44.8 billion. top slot as worlds richest man with a net worth of $113 billion 2nd: Bill gates (98 billion) FIFA’s latest ranking FIFA 108th 1-Belgium (Update-9April 2020) 2-France 3-Brazil Global Press Freedom Published by 142nd Norway Index 2020 Reporters Without (Update-22April Borders 2020)

Times Higher Times IIT-Kharagpur University of Education Impact (57th rank) Auckland Rankings 2020 (Update-22April 2020)

Chapter 10: India’s GDP Forecast FY20 &21 (Last Update 5th Nov) Organization 2019-20 2020-21 Fitch 4.9% (-)10.5% (Update-8 Sep) HDFC Bank 6% (-)7.5% (Update 24 JULY) RBI forecasted 5% (Updated 4 dec) (-)9.5%(Update-9 Oct) Moody 4.9% (-)8.9%(Update-14 Nov) Asian Development Bank (ADB) 5.1% (-)9%(Update-15 Sept) World Bank 4.8% (-)9.6%(Update-6 Oct) World Economic Outlook 4.2% (-)10.3% (Update-13 Oct) released by International

ambitiousbaba.com Online Test Series

Monetary Fund (IMF) FICCI 5% (-)4.5% Organisation for Economic Co- 4.9% (Updated 3 march 2020 ) (-)10.2% (Update-17 operation and Development Sept) (OECD) DBS Bank (-)6% (Update 22 July) Goldman Sachs 5.3% (-)5% CRISIL 5.1% (-)9%(Update 11 Sep) UN (United Nation) 5% 1.2% Confederation of Indian between (-)0.9 per cent and Industry (CII) 1.5 per cent India Ratings & Research 5% fY 2020. (-)11.8% (Update-8 Sep)

Economy Survey 6-6.5% 2-3% National Council of Applied 4.9% (Updated- 21 Feb 2020) (-)12.6%(Update-26 Sept) Economic Research (NCAER) Standard & Poor’s (S&P) 6.3% (-)5% ICRA (-)11% (Update-29 Sept) State Bank of India (SBI) 4.2% (-)10% (Update-20 August) UBC (Updated 23 March 2020) 4% CARE Ratings (-)8% (Update-14 sept) Normura -6.1% (Update-20 July) UBS -8.6% (Update-17 sept)

Chapter 11: RBI/SEBI Imposed monetary penalty on Banks and Organization 2020

RBI/ SEBI Penalty Amount Banks and Organization/ Reason

SEBI Rs 7 lacs National Highways Authority of India (NHAI) for delay in making timely disclosure about financial results. RBI 5cr. Bank of India for non-compliance

RBI 1.2cr. Karnataka Bank for non- compliance RBI 30 lacs SaraswatCooperative for non- compliance RBI 1cr. HDFC Bank for non-compliance with its know your customer (KYC) norms.

RBI 1cr. "RBI has observed that the Bank was operating a bilateral ATM sharing

ambitiousbaba.com Online Test Series

arrangement with Druk PNB Bank Ltd, Bhutan, (international subsidiary of the Bank), since April, 2010 without the prior approval / authorisation from RBI

Topic 3: KYC & AML Anti- Money Laundering (PMLA Act 2002) • The offence of money laundering has been defined in Section 3 of the Prevention of Money Laundering Act,2002 (PMLA) as “whosoever directly or indirectly attempts to indulge or knowingly assists or knowingly is a party or is actually involved in any process or activity connected with the proceeds of crime and projecting it as untainted property shall be guilty of offence of money laundering”. Stages of Money laundering • Placement: Placement is the first stage in the money laundering process. It refers to the physical disposal of proceeds of criminal activity. • Layering: “Layering” refers to the separation of illicit proceeds from their sources by creating complex layers of financial transactions. Layering conceals the audit trial and provides anonymity. • Integration: The third phase is integration, which means placing laundered proceeds into the legitimate economy as normal funds.

The act was amended in the year 2005, 2009 and 2012. • On 24 Nov 2017, In a ruling in favour of citizens’ liberty, the Supreme Court has set aside a clause in the Prevention of Money Laundering Act, which made it virtually impossible for a person convicted to more than three years in jail to get bail if the public prosecutor opposed it. (Section 45 of the PMLA Act, 2002, provides that no person can be granted bail for any offence under the Act unless the public prosecutor, appointed by the government, gets a chance to oppose his bail. And should the public prosecutor choose to oppose bail, the court has to be convinced that the accused was not guilty of the crime and additionally that he/she was not likely to commit any offence while out on bail- a tall order by any count.) (It observed that the provision violates Articles 14 and 21 of the Indian Constitution) • Any person who directly or indirectly: • Attempts to indulge. • Assists the person who is actually involved in any process. • Is a party to the activity connected with the proceeds of crime.

ambitiousbaba.com Online Test Series

As the supply of illegal arms, drug trafficking, and prostitution, which can generate huge amounts of money and projecting or claiming it as untainted property; shall be guilty of the offence of Money Laundering. The Act was formulated for the following objectives: • Prevent money-laundering. • Combat/prevent channelising of money into illegal activities and economic crimes. • Provide for the confiscation of property derived from, or involved/used in, money-laundering. • Provide for matters connected and incidental to the acts of money laundering.

Special Court • Section 43 of Prevention of Money Laundering Act, 2002 (PMLA) says that the Central Government, in consultation with the Chief Justice of the High Court, shall, for trial of offence punishable under Section 4, by notification, designate one or more Courts of Session as Special Court or Special Courts for such area or areas or for such case or class or group of cases as may be specified in the notification.

List of Offences • Under PMLA, the commission of any offence, as mentioned in Part A and Part C of the Schedule of PMLA will attract the provisions of PMLA. • Some of the Acts and offences, which may attract PMLA, are enumerated below: • Part A enlists offences under various acts such as: • Indian Penal Code, Narcotics Drugs and Psychotropic Substances Act, Prevention of Corruption Act, Antiquities and Art Treasures Act, Copyright Act, Trademark Act, Wildlife Protection Act, and Information Technology Act. • Part B specifies offences that are Part A offences, but the value involved in such offences is Rs 1 crore or more. • Part C deals with trans-border crimes and reflects the dedication to tackle money laundering across global boundaries.

Obligations Under Prevention of Money Laundering Act, 2002 • Section 12 of PMLA, 2002 casts the following reporting obligation of banking companies to the Director, Financial intelligence Unit- India (FIU-IND), besides obligations of record keeping and preservation of information. Authorities Entrusted for Investigation The Enforcement Directorate in the Department of Revenue, Ministry of Finance, the Government of India is responsible for investigating the offences of money laundering under the PMLA.

ambitiousbaba.com Online Test Series

Financial Intelligence Unit – India (FIU-IND) under the Department of Revenue, Ministry of Finance is an independent body reporting directly to the Economic Intelligence Council (EIC) headed by the Finance Minister. FIU-IND is the central national agency responsible for receiving, processing, analysing, and disseminating the information relating to suspect financial transactions. It is also responsible for: Coordinating and strengthening the efforts of national and international intelligence, Investigations for pursuing the global efforts against money laundering and related crimes. The scheduled offences are separately investigated by agencies mentioned under respective acts, for example, the local police, CBI, customs departments, SEBI, or any other investigative agency, as the case may be. Actions that can be Initiated Against the Person Involved in Money Laundering (i)Seizure/freezing of property and records and attachment of property obtained with the proceeds of crime. (ii)Any person who commits the offence of money laundering shall be punishable with – • Rigorous imprisonment for a minimum term of three years and this may extend up to seven years. • Fine (without any limit). (iii)If the proceeds of crime involved in money laundering related to Part A (offence specified under the Narcotic Drugs and Psychotropic Substances Act, 1985, then the punishment shall be – • Rigorous imprisonment for a term which shall not be less than three years but which may extend up to 10 years. • Fine (without any limit). Over the past decades, several anti-money laundering policies have been adopted to overcome laundering. Financial institutions and governments are constantly looking for new approaches to fight against the money launderers. The banks and financial institutions play a pivotal role in the world of financial crime. It is important that they are properly trained on how to identify and handle money laundering. Almost every bank employee receives training in anti-money laundering, and all financial institution and banks are legally required to report any suspicious activity. With the help of technology such as special compliance platforms, companies are now able to easily research their customers and ensure that they are not doing business with criminals. Cash Transaction Report (CTR): • All cash transactions of the value of more than Rs 10 lakhs or its equivalent in foreign currency. • All series of cash transactions integrally connected to each other, which have been valued below Rs 10 lakhs or its equivalent in foreign currency where such series of transactions have taken place within a month and the aggregate value of such transactions exceeds Rs 10 lakhs.

ambitiousbaba.com Online Test Series

• All cash transaction where forged or counterfeit currency notes or banknotes have been used as genuine and where any forgery of a valuable security has taken place. However, individual transactions for below Rs 50000 are not to be included in CTR.

Suspicious Transactions Report (STR) • If there are reasonable grounds to believe that the transaction involves proceeds of crime. Suspicious Transaction Report (STR) should be furnished within 7 days of arriving at a conclusion that any transaction, whether cash or non-cash, or a series of transactions integrally connected are of suspicious nature. Know your Customer What is KYC? • KYC is an acronym for “Know your Customer”, a term used for customer identification process. It involves making reasonable efforts to determine true identity and beneficial ownership of accounts, source of funds, the nature of customer’s business, reasonableness of operations in the account in relation to the customer’s business, etc which in turn helps the banks to manage their risks prudently. The objective of the KYC guidelines is to prevent banks being used, intentionally or unintentionally by criminal elements for money laundering.

Is there any legal backing for verifying identity of clients? • Yes. Reserve Bank of India has issued guidelines to banks under Section 35A of the Banking Regulation Act, 1949 and Rule 7 of Prevention of Money-Laundering (Maintenance of Records of the Nature and Value of Transactions, the Procedure and Manner of Maintaining and Time for Furnishing Information and Verification and Maintenance of Records of the Identity of the Clients of the Banking Companies, Financial Institutions and Intermediaries) Rules, 2005.

What are the features to be verified and documents required to be obtained from customers? • The features to be verified and documents that may be obtained vary dependingupon the type of customers. The same are furnished below:

Features Documents Accounts of individuals (i)Passport (ii) PAN card (iii) Voter’s o Legal name and any other names Identity Card (iv) Driving License (v) *Job used Card issued by NREGA duly signed by an officer of the State Govt (vi) The letter issued by the Unique Identification

ambitiousbaba.com Online Test Series

Authority of India ( UIDAI) containing details of name, address and Aadhaar number (vii) Identity card (subject to the bank’s satisfaction) (viii) Letter from a o Correct permanent address recognized public authority or public servant verifying the identity and residence of the customer to the satisfaction of bank. (i) Telephone bill (ii) Bank account statement (iii) Letter from any recognized public authority (iv) Electricity bill (v) Ration card (vi) Letter from employer (subject to satisfaction of the bank) ( any one document which provides customer information to the satisfaction of the bank will suffice )

Accounts of companies (i) Certificate of incorporation and o Name of the company Memorandum & Articles of Association (ii) o Principal place of business Resolution of the Board of Directors to o Mailing address of the company open an account and identification of those o Telephone/Fax Number who have authority to operate the account (iii) Power of Attorney granted to its managers, officers or employees to transact business on its behalf (iv) Copy of PAN allotment letter (v) Copy of the telephone bill Accounts of partnership firms (i) Registration certificate, if registered (ii) o Legal name Partnership deed (iii) Power of Attorney o Address granted to a partner or an employee of the o Names of all partnersand their firm to transact business on its behalf (iv) addresses Any officially valid document identifying o Telephone numbers of the firm and the partners and the persons holding the partners Power of Attorney and their addresses (v) Telephone bill in the name of firm/partners Accounts of trusts & foundations (i) Certificate of registration, if registered o Names of trustees, settlors, (ii) Power of Attorney granted to transact beneficiaries and signatories business on its behalf (iii) Any officially o Names and addresses of the valid document to identify the trustees, founder, the managers/directors and settlors, beneficiaries and those holding the beneficiaries Power of Attorney, founders/managers/ o Telephone/fax numbers directors and their addresses (iv) Resolution of the managing body of the foundation/association (v) Telephone bill

ambitiousbaba.com Online Test Series

Accounts of Proprietorship Concerns Proof Registration certificate (in the case of a of the name, address and activity of the registered concern) concern • Certificate/licence issued by the Municipal authorities under Shop & Establishment Act, • Sales and income tax returns • CST/VAT certificate • Certificate/registration document issued by Sales Tax/Service Tax/Professional Tax authorities • Licence issued by the Registering authority like Certificate of Practice issued by Institute of Chartered Accountants of India, Institute of Cost Accountants of India, Institute of Company Secretaries of India, Indian Medical Council, Food and Drug Control Authorities, registration/licensing document issued in the name of the proprietary concern by the Central Government or State Government Authority/ Department, etc. Banks may also accept IEC (Importer Exporter Code) issued to the proprietary concern by the office of DGFT as an identity document for opening of the bank account. etc. • The complete Income Tax return (not just the acknowledgement) in the name of the sole proprietor where the firm’s income is reflected, duly authenticated/ acknowledged by the Income Tax Authorities. • Utility bills such as electricity, water, and landline telephone bills in the name of the proprietary concern. Any two of the above documents would suffice. These documents should be in the name of the proprietary concern. 1. What is KYC? Why is it required? KYC means “Know Your Customer”. It is a process by which banks obtain information about the identity and address of the customers. This process helps to ensure that banks’ services are not misused. The KYC procedure is to be completed by the banks while opening accounts and also periodically update the same. 2. What are the KYC requirements for opening a bank account? To open a bank account, one needs to submit a Aadhaar/enrolment number and PAN as ‘proof of identity and proof of address’ together with a recent photograph.

ambitiousbaba.com Online Test Series

3. If I refuse to provide requested documents for KYC to my bank for opening an account, what may be the result? If you do not provide the required documents for KYC, the bank may not be able to open your account. 4. Do I have to furnish KYC documents for each account I open in a bank even though I have furnished the documents of proof of identity and address? No, if you have opened an account with a bank, which is KYC compliant, then for opening another account with the same bank, furnishing of documents is not necessary. 5. Whether KYC is applicable for Credit/Debit/Smart/Gift cards? Yes. Full KYC exercise is necessary for Credit/Debit/Smart/for purchaser of Gift Cards and also in respect of add-on/ supplementary cards. 6. I do not have a bank account. But I need to make a remittance. Is KYC applicable to me? Yes. KYC exercise needs to be done for all those who want to make domestic remittances of Rs. 50,000 and above and all foreign remittances. 7. Can I purchase a Demand Draft/Payment Order/Travellers Cheque against cash without KYC? Demand Draft/Payment Order/Travellers Cheques for Rs.50,000/- and above can be issued only by way of debiting the customer's account or against cheques. 8. Do I need to submit KYC documents to the bank while purchasing third party products (like insurance or mutual fund products) from banks? Yes, all customers who do not have accounts with the banks (known as walk-in customers) have to produce proof of identity and address while purchasing third party products from banks if the transaction is for Rs.50,000 and above. KYC exercise may not be necessary for bank’s own customers for purchasing third party products. However, instructions to make payment by debit to customers’ accounts or against cheques for remittance of funds/issue of travellers’ cheques, sale of gold/silver/platinum and the requirement of quoting PAN number for transactions of Rs.50,000 and above would be applicable to purchase of third party products from banks by bank’s customers as also to walk-in customers. 9. My KYC was completed when I opened the account. Why does my bank insist on doing KYC again? Banks are required to periodically update KYC records. This is a part of their ongoing due diligence on bank accounts. The periodicity of such updation would vary from account to account or categories of accounts depending on the bank’s perception of risk. Periodical updation of records also helps prevent frauds in customer accounts. 10. Are banks required to categorise their customers based on risk assessment? Yes, banks are required to classify the customers into ‘low’, ‘medium’ and ‘high’ categories depending on their AML risk assessment. 11. Do banks inform customers about this risk categorisation? No 12. What are the rules regarding periodical updation of KYC? • Different periodicities have been prescribed for updation of KYC records depending on the risk perception of the bank. KYC is required to be done once in every two years for high risk customers, once in every eight years for medium risk customers and once in every ten years for low risk customers. This exercise would involve all formalities normally taken at the time of opening the account.

ambitiousbaba.com Online Test Series

• During the process, the following are carried out. o PAN verification from the verification facility available with the issuing authority and o Authentication, of Aadhaar Number already available with the RE with the explicit consent of the customer in applicable cases. o In case identification information available with Aadhaar does not contain current address an Officially Valid Documents (OVDs) containing current address may be obtained. o Certified copy of OVD containing identity and address shall be obtained at the time of periodic updation from individuals not eligible to obtain Aadhaar, except from individuals who are categorised as ‘low risk’. In case of low risk customers when there is no change in status with respect to their identities and addresses, a self-certification to that effect shall be obtained. • Customers who are minors have to submit fresh photograph on becoming major. • REs may not insist on the physical presence of the customer for the purpose of furnishing OVD or furnishing consent for Aadhaar authentication/Offline Verification unless there are sufficient reasons that physical presence of the account holder/holders is required to establish their bona-fides. Normally, OVD/Consent forwarded by the customer through mail/post, etc., shall be acceptable. 13. Is there any difference between such ‘small accounts’ and other accounts Yes. The ‘Small Accounts’ have certain limitations such as: • Balance in such accounts at any point of time should not exceed Rs 50,000 • Total credits in one year should not exceed Rs.1,00,000 • Total withdrawal and transfers should not exceed Rs.10,000 in a month. • Foreign remittance shall not be allowed to be credited into the account Such accounts remain operational initially for a period of twelve months and thereafter, for a further period of twelve months, if the holder of such an account provides evidence to the bank of having applied for any of the officially valid documents within twelve months of the opening of such account. The bank will review such account after twenty four months to see if it requires such relaxation. 14. Is introduction necessary while opening a bank account? No, introduction is not required. 15. For which banking transactions do I need to quote my PAN number? PAN number needs to be quoted for transactions, such as, account opening, transactions above Rs.50,000 (whether in cash or non-cash), etc. A full list of transaction where PAN number needs to be quoted can be accessed from website of Income Tax Department at the following 16. What is the validity of cheques/drafts/pay orders/banker’s cheques ? Payment of cheques/drafts/pay orders/banker’s cheques, if they are presented beyond the period of three months from the date of such instruments, shall not be made.

E-KYC

What is e-KYC? How does e-KYC work?

ambitiousbaba.com Online Test Series

e-KYC refers to electronic KYC. e-KYC is possible only for those who have Aadhaar numbers. While using e-KYC service, you have to authorise the Unique Identification Authority of India (UIDAI), by explicit consent, to release your identity/address through biometric authentication to the bank branches/business correspondent (BC). The UIDAI then transfers your data comprising name, age, gender, and photograph of the individual, electronically to the bank/BC. Information thus provided through e-KYC process is permitted to be treated as an ‘Officially Valid Document’ under PML Rules and is a valid process for KYC verification. Accounts opened using OTP based e-KYC, in non-face-to-face mode are subject to the following conditions: 1. There must be a specific consent from the customer for authentication through OTP. 2. the aggregate balance of all the deposit accounts of the customer shall not exceed rupees one lakh. In case, the balance exceeds the threshold, the account shall cease to be operational, till CDD as mentioned at (v) below is complete. 3. the aggregate of all credits in a financial year, in all the deposit accounts taken together, shall not exceed rupees two lakh. 4. As regards borrowal accounts, only term loans shall be sanctioned. The aggregate amount of term loans sanctioned shall not exceed rupees sixty thousand in a year. 5. Accounts, both deposit and borrowal, opened using OTP based e-KYC shall not be allowed for more than one year within which identification as per Section 16 is to be carried out. 6. If the CDD procedure as mentioned above is not completed within a year, in respect of deposit accounts, the same shall be closed immediately. In respect of borrowal accounts no further debits shall be allowed. 7. A declaration shall be obtained from the customer to the effect that no other account has been opened nor will be opened using OTP based KYC in non-face-to-face mode with any other RE. Further, while uploading KYC information to CKYCR, REs shall clearly indicate that such accounts are opened using OTP based e-KYC and other REs shall not open accounts based on the KYC information of accounts opened with OTP based e-KYC procedure in non-face-to-face mode. 8. REs shall have strict monitoring procedures including systems to generate alerts in case of any non-compliance/violation, to ensure compliance with the above mentioned conditions. Procedure to be followed in respect of foreign students Banks should follow the following procedure for foreign students studying in India: • Banks may open a Non Resident Ordinary (NRO) bank account of a foreign student on the basis of his/her passport (with visa & immigration endorsement) bearing the proof of identity and address in the home country together with a photograph and a letter offering admission from the educational institution in India. • Banks should obtain a declaration about the local address within a period of 30 days of opening the account and verify the said local address. • During the 30 days period, the account should be operated with a condition of allowing foreign remittances not exceeding USD 1,000 or equivalent into the account and a cap of monthly withdrawal to Rs. 50,000/-, pending verification of address.

ambitiousbaba.com Online Test Series

• The account would be treated as a normal NRO account, and will be operated in terms of instructions contained in the Reserve Bank of India’s instructions on Non- Resident Ordinary Rupee (NRO) Account, and the provisions of Schedule 3 of FEMA Notification 5/2000 RB dated May 3, 2000. • Students with Pakistani and Bangladesh nationality will need prior approval of the Reserve Bank for opening the account. Topic 4: Preventive Vigilance In Banks Vigilance Function In Banks The dictionary defines Vigilance as being watchful and cautious to detect danger, being ever awake and alert. While being vigilant is important in all walks of life, the observance of vigilance becomes more critical in the financial sector and particularly for institutions like banks, which deal with public money. Banks, which act as an intermediary between depositors and lenders, are duty bound to observe the highest standards of safeguards to ensure that money accepted from depositors are not mis-utilized and are put to gainful use or are available with them to be paid on demand. To ensure this, banks are not only required to do due diligence on the borrowers but are also expected to put in place appropriate safeguards to ensure that the transactions being undertaken by the staff are as per laid down guidelines. The watchfulness enforced by the vigilance function is required to ensure that public money, which banks hold in fiduciary capacity is not allowed to be misused by the delinquent elements in any manner. Types of Vigilance in banks: There are mainly three types of vigilance in banks; • Preventive Vigilance: It plays an important role in strengthening the vigilance set up of any organisation. Preventive Vigilance sets up procedure and systems to restrain the acts of wrong doing and misconduct in the various areas of the functioning of department. • Detective Vigilance: Effective use and scan of Complaints, Inspection Reports, Audit Reports etc. Detection of Corrupt Practices, Malpractices, Negligence, Misconduct and better surveillance of public contact points. Close watch on officers at sensitive posts of doubtful integrity and detect fraud and scrutiny of decision taken by officials having discretionary powers. • Punitive Vigilance: It includes investigation and collection of evidence and speedy departmental inquiries. Swift and deterrent action against the real culprit. Aim of Vigilance in Banks: Preventive vigilance is aimed at reducing the occurrence of a lapse (violation of a law, a norm, or, broadly speaking, a governance requirement). Detective vigilance is aimed at identifying and verifying the occurrence of a lapse. Punitive vigilance is aimed at deterring the occurrence of a lapse. Detective and punitive vigilance are strategic complements. The greater the punishment, the more useful it is to detect. Conversely, having a high penalty is ineffective when the quality of detection is poor. Preventive vigilance takes a central role in vigilance organized at the Reserve Bank of India (RBI). The overall responsibility for vigilance work at the RBI vests with the Central Vigilance Cell (C.V.Cell or Cell), which exercises its jurisdiction over all employees of the Bank and co-ordinates the activities of the various vigilance units. The Cell maintains

ambitiousbaba.com Online Test Series

liaison with the Central Vigilance Commission (CVC) and the Central Bureau of Investigation (CBI). Vigilance guidelines issued by the CVC are aimed at greater transparency, promoting a culture of honesty and probity in public life, and improving the overall vigilance administration in the organizations within its purview. RBI has taken several preventive measures to maintain high standards of integrity. Preventive Vigilance is adoption of various measures to improve systems and procedures to eliminate or reduce corruption. Organisations keep a watch over their staff & customers to avoid any untoward happening, incident or accident. Vigilance refers to the process of paying close and continuous attention. Objective of Preventive Vigilance: The objective of Preventive Vigilance in banks are as under; • Exercising watchfulness and diligence by all employees so as to prevent happening of any untoward incidents that may adversely affect financial or reputational implications for the organization. • To ensure strict adherence to integrity by all employees and bank’s laid down policies, systems and procedures so that bank’s interest is protected. • Preventive vigilance sets up procedures and systems to restrain the acts of wrongdoing. • Restrain the misconduct in the various areas of the functioning of any organization.

Preventive Vigilance In Electronic Banking Phishing Attack: Phishing is a type of social engineering attack often used to steal user data, including login credentials and credit card numbers. It occurs when an attacker, masquerading as a trusted entity, dupes a victim into opening an email, instant message, or text message. The recipient is then tricked into clicking a malicious link, which can lead to the installation of malware, the freezing of the system as part of a ransomware attack or the revealing of sensitive information. An attack can have devastating results. For individuals, this includes unauthorized purchases, the stealing of funds, or identify theft.

Phishing Attack Examples: The following illustrates a common phishing scam attempt: • A spoofed email ostensibly from myuniversity.edu is mass-distributed to as many faculty members as possible. • The email claims that the user’s password is about to expire. Instructions are given to go to myuniversity.edu/renewal to renew their password within 24 hours. Phishing Techniques: Email phishing is a numbers game. An attacker sending out thousands of fraudulent messages can net significant information and sums of money, even if only a small percentage of recipients fall for the scam. As seen above, there are some techniques attackers use to increase their success rates. For one, they will go to great lengths in designing phishing messages to mimic actual emails from a spoofed organization. Using the same phrasing, typefaces, logos, and signatures makes the messages appear legitimate. In addition, attackers will usually try to push users into action by creating a sense of urgency. For example, as previously shown, an email could threaten account expiration and

ambitiousbaba.com Online Test Series

place the recipient on a timer. Applying such pressure causes the user to be less diligent and more prone to error. Spear Phishing: Spear phishing targets a specific person or enterprise, as opposed to random application users. It's a more in depth version of phishing that requires special knowledge about an organization, including its power structure. An attack might play out as follows: • A perpetrator researches names of employees within an organization’s marketing department and gains access to the latest project invoices. • Posing as the marketing director, the attacker emails a departmental project manager (PM) using a subject line that reads, Updated invoice for Q3 campaigns. The text, style, and included logo duplicate the organization’s standard email template. • A link in the email redirects to a password-protected internal document, which is in actuality a spoofed version of a stolen invoice. • The PM is requested to log in to view the document. The attacker steals his credentials, gaining full access to sensitive areas within the organization’s network. • By providing an attacker with valid login credentials, spear phishing is an effective method for executing the first stage of an APT. Phishing Protection: Phishing attack protection requires steps be taken by both users and enterprises. For users, vigilance is key. A spoofed message often contains subtle mistakes that expose its true identity. These can include spelling mistakes or changes to domain names, as seen in the earlier URL example. Users should also stop and think about why they’re even receiving such an email. For enterprises, a number of steps can be taken to mitigate both phishing and spear phishing attacks: • Two-factor authentication (2FA) is the most effective method for countering phishing attacks, as it adds an extra verification layer when logging in to sensitive applications. 2FA relies on users having two things: something they know, such as a password and user name, and something they have, such as their smartphones. Even when employees are compromised, 2FA prevents the use of their compromised credentials, since these alone are insufficient to gain entry. • In addition to using 2FA, organizations should enforce strict password management policies. For example, employees should be required to frequently change their passwords and to not be allowed to reuse password for multiple applications. • Educational campaigns can also help diminish the threat of phishing attacks by enforcing secure practices, such as not clicking on external email links.

ambitiousbaba.com Online Test Series

Click here to Buy SBI CBO 2020 Online Test Series

Chapter 5: Legal Issues • Chapter 1: Legal Framework of Regulation of Banks • Chapter 2: Reserve Bank of India Act 1934 • Chapter 3: Banking Regulation Act, 1949 • Chapter 4: RBI as a Central Bank and Regulator of Banks • Chapter 5: Provisions of Information and Technology Act, 2000 • Chapter 6: Provisions of Indian Penal Code, 1860 • Chapter 7: Case Laws on Responsibility of Paying Bank • Chapter 8: Case Laws on Responsibility of Collecting Bank • Chapter 9: Different types of Borrowers • Chapter 10: Indemnities • Chapter 11: Bank Guarantees • Chapter 12 : Letters Of Credit • Chapter 13: Deferred Payment Guarantee • Chapter 14: Law Relating to Bill finance • Chapter 15: Law Relating to Securities and Modes of Charge- 1 • Chapter 16: Law Relating to Securities and Modes of Charge 2 • Chapter 17: Registration and Satisfaction of Charges • Chapter 18: SARFAESI ACT, 2002 • Chapter 19: Enforcement of Security Interest • Chapter 20 : Offences and Penalties • Chapter 21: Procedure Of Tribunals

ambitiousbaba.com Online Test Series

• Chapter 22: The Legal Services Authorities Act, 1987: Lok Adalats • Chapter 23: Consumer Disputes Redressal Agencies • Chapter 24: Information Technology Act, 2000

It is an accepted fact that despite having strict and specific statutes like Information and Technology Act, 2000 and Indian Penal Code, 1860 for curbing the Cyber Crimes, they are increasing day by day very rapidly and acting like a silent killer in our society. The present situation widely forecasts that there is still a lacuna in the present legal system and structure for tackling the Cyber Crimes and Criminals more strictly and perfectly. It must be noted that the E-Banking is not a separate business among the Banking Channels, but it is only an additional facility provided by the Banks to its customers on an additional monthly charges like SMS, Annual Membership, etc. which is completely optional i.e. is dependent on the Customers to avail it or not. The Reserve Bank of India is regulated by the RBI Act, 1934 and for Electronic Records and System according to the provisions of Information and Technology Act, 2000. It can be widely seen that despite having all this set of regulations and Hon’ble Authorities for the regulation and maintenance of E-Banking, even then we are not having any specific provisions for curbing the E-Banking Frauds and Cyber Frauds in India, rather than the traditional ones. Even if some of my able readers disagrees with me then too they must accept the fact that the enforcement structure and personnel involved in the same is too timid and un-trained which is the main reason behind the rapid increment in the Cyber Crimes in India, since the past decade. The Legal Framework of the Indian Banking System is governed by the following set of statutes which are as follows: • The Banking Regulation Act, 1949 • The Reserve Bank of India (RBI) Act, 1934 • Foreign Exchange Management Act, 1999 • Indian Evidence Act, 1872 • Indian Contract Act, 1872 • Information and Technology (IT) Act, 2000 • Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI) Act, 2002 • Negotiable Instruments Act, 1881

Chapter 1: Legal Framework of Regulation of Banks Business of Banking Banking: Banking is defined in section 5(b) of the Banking Regulation Act as the acceptance of deposits of money from the public for the purpose of lending or investment. Deposits Withdrawable by cheque: Under section 49A of the Banking Regulation Act, no organization other than a bank is authorized to accept deposits withdrawable by Cheque. Acceptance of Deposits by Non-banking entities: The Reserve Bank of India (the Bank), having considered it necessary in the public interest and being satisfied that for the purpose of enabling the Bank to regulate the credit system to the advantage of the country,

ambitiousbaba.com Online Test Series

it is necessary to give the directions set out below, hereby, in exercise of the powers conferred by sections 45J, 45JA, 45K, 45L and 45MA of the Reserve Bank of India Act, 1934 (Act 2 of 1934) (the RBI Act) and of all the powers enabling it in this behalf, and in supersession of the earlier directions contained in Notification No.DFC.118/DG (SPT)-98 dated January 31, 1998 issues the following Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 2016 (the Directions) applicable to every non-banking financial company hereinafter specified. Licence for Banking: In India, it is necessary to have a licence from the RBI under Section 22 of the Banking Regulation Act for commencing or carrying on the business of banking. Permitted Business: Main business of banks is acceptance of deposits and lending, the banks have now spread their wings far and wide into many allied and even unrelated activities. The forms of business permissible under section 6(1) of the Banking Regulation Act, apart from banking business, 1. Borrowing, raising or taking up of money 2. Lending or advancing of money either against security or without security 3. Drawing, making, accepting, discounting, buying, selling, collecting and dealing in bills of exchange. 4. Granting and issuing of letter of credit 5. Buying and selling of foreign exchange and foreign bank notes 6. Negotiating of loans and advances 7. Providing of safe deposit 8. Undertake and execute trust ETC, ETC

Prohibited Business: Section 8 of the Banking Regulation Act prohibits a banking company from engaging directly or indirectly in trading activities and undertaking trading risk. Buying or selling or bartering of goods directly or indirectly is prohibited. Constitution of Banks Banks in India fall under one of the following categories: • Body corporate constituted under a special statute; • Company registered under Companies Act, 1956 / foreign company • Cooperative Society registered under a central and state enactment on cooperative societies. Public sector bank A Public Sector bank is one in which, the Government of India holds a majority stake. These banks are constituted under special statue. The State Bank of India was constituted under The State Bank of India Act, 1955. The six subsidiaries of State Bank of India were constituted under the State Bank of India (Subsidiary Banks) Act, 1959. The government further nationalized 14 commercial banks through Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1969 on 19th July 1969. It later nationalized six more commercial banks through Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 on 15th April 1980. The State Banks (Repeal and Amendment) Bill 2017 merges five associate banks of SBI and Bharatiya Mahila Bank with SBI.

ambitiousbaba.com Online Test Series

Banking Companies A banking company, as defined in section 5(c) of the Banking Regulation Act is a company which transacts the business of banking. Such company may be a company constituted under section 3 of the Companies Act, 1956 or incorporated under the Companies Act, 2013 or foreign company within the meaning of section 591 (u/s 379 of companies Act, 2013) of that Act. All the private sector banks are banking companies. These banks are governed by the Companies Act, 1956 or Companies Act 2013 in respect of their constitution and by the Banking regulation Act. Co-operative bank A Cooperative bank is essentially a cooperative Society. There are two types of Co- operative banks: Multi-state cooperative society and State Cooperative society. Multi-state cooperative societies are registered under the cooperative society’s act of the Centre. State cooperative societies are registered under the state cooperative act. The Banking laws (Application to Co-operative Societies) Act, 1956 extended certain provisions of the Banking Regulation Act and Reserve Bank of India Act to the Co-operative banking sector.

Chapter 2: Reserve Bank of India Act 1934 The Reserve Bank of India Act 1934 is an Act to constitute a Reserve Bank of India (RBI) and provide the central bank (RBI) with various powers to act as the central bank of India. RBI Act 1934. There are total 61 Sections in the RBI Act 1934. Some important sections are listed below: • Section 3: Establishment and incorporation of Reserve Bank. • Section 4: Capital of the Bank. The capital of the Bank shall be five crores of rupees. • Section 6: Establishment of Offices, branches and agencies • Section 8: The composition of central board of Reserve Bank of India • Section 17: The business that RBI can carry out • Section 18: Provides for direct discount of bills of exchange and promissory notes • Section 20: Obligation of the Bank to transact Government business. • Section 21: Bank to have the right to transact Government business in India. • Section 21A: Bank to transact Government business of States on agreement. • Section 22: Right to issue bank notes. • Section 24: Denominations of notes. (1) Subject to the provisions of sub-section (2), bank notes shall be of the denominational values of two rupees, five rupees, ten rupees, twenty rupees, fifty rupees, one hundred rupees, five hundred rupees, one thousand rupees, five thousand rupees and ten thousand rupees or of such other denominational values, not exceeding ten thousand rupees. • Section 27: Re-issue of notes. The Bank shall not re-issue bank notes which are torn, defaced or excessively soiled. • Section 26 (1): Defines legal tender of notes • Section 26(2): Withdrawal of legal tender of notes • Section 42: Cash reserves of scheduled banks to be kept with the Bank.

ambitiousbaba.com Online Test Series

• Section 45(U): Defines repo, reverse repo, derivative, money market instruments and securities. Chapter 3: Banking Regulation Act, 1949 The Banking Regulation Act 1949 is a legislation in India that regulates all banking firms in India. Initially, the law was applicable only to banking companies. But, 1965 it was amended to make it applicable to cooperative banks and to introduce other changes. There are total 55 Sections in the Banking Regulation Act, 1949. Some important sections are listed below: • Section 18: Cash reserve • Section 17: Reserve fund • Section 8: Prohibition on trading • Section 9: Disposal of Non Banking assets • Section 6: Business allowed for a banking company • Section 10BB: Power of Reserve Bank to appoint [chairman of the Board of directors appointed on a whole-time basis or a managing director] of a banking company. • Section 11: Requirement as to minimum paid-up capital and reserves • Section 12: Regulation of paid-up capital, subscribed capital and authorised capital and voting rights of shareholders • Section 21: Power of Reserve Bank to control advances by banking companies • Section 21A: Rates of interest charged by banking companies • Section 22(1): Licensing of banking companies • Section 23: Restrictions on opening of new, and transfer of existing, places of business • Section 29: Accounts and balance-sheet • Section 30: Auditing of Banking Company • Section 36AE : Power of Central Government to acquire undertakings of banking companies in certain cases • Section 44A: Procedure for amalgamation of banking companies. 1. Amalgamation of two banking companies is under the provisions of Section 44A of the Banking Regulation Act, 1949. 2. Amalgamation of a banking company with a non-banking company is governed by sections 391 to 394 of the Companies Act, 1956. • Section 47A: Power of Reserve Bank to impose penalty • Section 49A: Restriction on acceptance of deposits withdrawable by cheque. Chapter 4: RBI as a Central Bank and Regulator of Banks The Reserve Bank was constituted under Section 3 of the RBI Act, 1934 for taking over the management of currency from the central government and carrying on the business of banking in accordance with the provisions of the Act. The Major powers of the RBI in the different roles as regulator and supervisor can be summed up as under: • Power to issue banking licence • Power of appointment and removal of banking boards/ Personnel

ambitiousbaba.com Online Test Series

• Power to regulate the business of banks • Power to gives directions • Power to inspect and supervise banks • Power regarding audit of banks • Power to collect, collate and furnish credit information • Power to impose penalties Chapter 5: Provisions of Information and Technology Act, 2000 The Provisions of the Act, widely deals regarding the Management in offering of E- Banking Services by the Bank Channels along-with dealing to specific provisions for curbing the E-Banking Frauds and other ancillary Cyber Crimes. • The Section 3(2) of the Information and Technology Act, 2000 provides specific provisions for a particular technology as a means of authenticating the records, like the Servers of Banks and other virtual platforms by virtue of which the Banks provide us the E-Banking Services. • The Section 4 of the Information and Technology Act, 2000 further says regarding the security and privacy of a customers information that any matter which shall be in writing or in a type-written form/printed form, then notwithstanding anything contained in such law, such requirement shall be deemed to have been satisfied as true, if such information is rendered and certified in an electric form and is accessible so as to be usable for the subsequent references. • The Section 72 and Section 79 of the Information and Technology Act, 2000 further provides the liability for Breach of Privacy of the Customers on the Service Providing Agency or the Intermediary which is responsible for providing the Data Service travelling through their servers on certain terms and conditions. Note: For improving the quality and status of the E-Banking services G. Gopalkrishna Working Group (GCWG) in 2011 has released a Report on the Security of E-Banking in India with some amendments on 29 April, 2009 which presently constitutes the current regulatory guidelines as an extension of IBG 2001. Chapter 6: Provisions of Indian Penal Code, 1860 The main provisions relating to dealing with the E-Banking Frauds in India are as follows: • Section 383: Punishment of Extortion- Whosoever intentionally and illegally puts a person in fear to deliver any property or valuables to him, otherwise he will defame that person by posting some defamatory statement or Article against the said person shall be punished with imprisonment which may extend to three years, or fine, or both. • Section 379: Punishment of Theft- Whosoever dishonestly take away the goods or any electronic record illegally from the possession of it’s rightful owner without his express consent shall be punished with imprisonment which may extend to three years or with fine or both. • Section 406: Punishment of Criminal Breach of Trust- Whosoever mis- appropriates any movable property like computer device or any electronic device which was entrusted to him for a lawful purpose, causing wrongful damages to it’s

ambitiousbaba.com Online Test Series

owner shall be punished with imprisonment which may extend to three years or with fine or both. • Section 417: Punishment of Cheating- Whosoever impersonates some other person which he is not or knowingly substitutes such person, and causes wrongful losses to the innocent victim shall be punished with imprisonment which may extend to one year, or fine or both. • Section 471: Using as genuine a forged document or electronic record- Whosoever fraudulently or dishonestly uses as genuine any document or electronic record which he knows to be forged shall be punished with an imprisonment which may extend to two years or fine, or with both. • Section 500: Punishment of Defamation- Whosoever knowingly publishes without any justification or reasonable cause any statement, image or document on social platforms, believing and knowing it to be false against any person, firm, company were such imputation will definitely lower the image and intellect of him in front of the general public, shall be punished with simple imprisonment which may extend to two years or fine or with both. • Section 506: Punishment of Criminal Intimidation- Where a persons threatens other person to harm his reputation, life or property via an electronic means which induces that person to commit an illegal act or prevent him doing an act which is legally obligatory on him shall be punished with imprisonment which may extend to two years, or fine or both.

Chapter 7: Case Laws on Responsibility of Paying Bank Negotiable Instruments Act and Paying Banks Section 31 Negotiable Instruments Act, 1881: Liability of drawee of cheque. —The drawee of a cheque having sufficient funds of the drawer in his hands properly applicable to the payment of such cheque must pay the cheque when duly required so to do, and, in default of such payment, must compensate the drawer for any loss or damage caused by such default. Note: Section 10, 85, 85A, 89 and 128 of the Negotiable Instrument Act, 1881, grant protection to a paying banker. Section 31 Applies Only a Bankers: This is because as per Section 6 of the Negotiable Instruments Act, 1881 “Cheque” has been defined as a “Bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand”. Section 10 Negotiable Instruments Act, 1881: ''Payment in due course” means payment in accordance with the apparent tenor of the instrument in good faith and without negligence to any person in possession thereof under circumstances which do not afford a reasonable ground for believing that he is not entitled to receive payment of the amount therein mentioned. Section 85 Negotiable Instruments Act, 1881: "Cheque payable to order" Where a cheque payable to order purports to be indorsed by or on behalf of the payee, the drawee is discharged by payment in due course. Where a cheque is originally expressed to be payable to bearer, the drawee is discharged by payment in due course to the bearer thereof, notwithstanding any indorsement whether

ambitiousbaba.com Online Test Series

in full or in blank appearing thereon, and notwithstanding that any such indorsement purports to restrict or exclude further negotiation. Section 85A Negotiable Instruments Act, 1881: "Drafts drawn by one branch of a bank on another payable to order" Where any draft, that is, an order to pay money, drawn by one office of a bank upon another office of, the same bank for a sum of money payable to order on demand, purports to be indorsed by or on behalf of the payee, the bank is discharged by payment in due course. Section 89 Negotiable Instruments Act, 1881: a promissory note Where a promissory note, bill of exchange or cheque has been materially altered but does not appear to have been so altered, or where a cheque is presented for payment which does not at the time of presentation appear to be crossed or to have had a crossing which has been obliterated, payment thereof by a person or banker liable to pay, and paying the same according to the apparent tenor thereof at the time of payment and otherwise in due course, shall discharge such person or banker from all liability thereon; and such payment shall not be questioned by reason of the instrument having been altered or the cheque crossed. Where the cheque is an electronic image of a truncated cheque, any difference in apparent tenor of such electronic image and the truncated cheque shall be a material alteration and it shall be the duty of the bank or the clearing house, as the case may be, to ensure the exactness of the apparent tenor of electronic image of the truncated cheque while truncating and transmitting the image. Any bank or a clearing house which receives a transmitted electronic image of a truncated cheque, shall verify from the party who transmitted the image to it, that the image so transmitted to it and received by it, is exactly the same. Section 128 Negotiable Instruments Act, 1881: Payment in due course of crossed cheque.—Where the banker on whom a crossed cheque is drawn has paid the same in due course, the banker paying the cheque, and (in case such cheque has come to the hands of the payee) the drawer thereof, shall respectively be entitled to the same rights, and be placed in the same position in all respects, as they would respectively be entitled to and placed in if the amount of the cheque had been paid to and received by the true owner thereof. Chapter 8: Case Laws on Responsibility of Collecting Bank Statutory Protection to Collecting Bank Section 131 of the Negotiable Instruments Act grants protection to a collecting banker • Non-liability of a Banker Receiving Payment of Cheque: A Banker, who has , in good faith and without negligence, received payment for a customer of cheque crossed generally or specially to himself shall not, in case the title to the cheque proves defective, incur any liability to the true owner of the cheque by reason only of having received such payment. • Conditions for Protection: Though Section 131 grants protection to a collecting banker, the protection is conditional. For the collecting banker to claim the protection under section 131, he has to comply with certain conditions and they are:

ambitiousbaba.com Online Test Series

1. The collecting banker should have acted in good faith 2. He should have acted without negligence 3. He should receive payment for a customer 4. The cheque should be crossed generally or specially to himself. Duties of Collecting Bank • Duty to open account with references • Duty to follow up the reference where the referee is not known • Duty to Ensure Crossing: It is duty of the banker to ensure that the cheque is crossed specifically to himself and if the cheque is crossed to some other banker they should refuse to collect it. Similarly where the cheque is crossed to a specific account then crediting the same to another account without necessary enquiry’s would make him liable on the grounds of negligence. • Duty to verify the instruments / any apparent defect in the Instruments • Duty to take into account the state of customers account • Negligence of Collecting Bank in Collecting Cheques Payable to Third parties.

Chapter 9: Different types of Borrowers Types of Borrowers • Individual • Partnership Firm • Hindu Undivided Family • Companies • Statutory Corporations • Trusts and Cooperative Societies Individual • If the banker lent money to an individual who is not competent to contract then the lended money cannot be recovered under following cases. • If Individual is Minor who has not attained the age of 18 years under Indian Majority Act and 20 years if he is a ward under the Guardian and ward's Act. • If an individual is not of sound mind then he is incompetent to enter into contract. • If statutory disqualification imposed on certain person in respect of their to contract. Partnership Firm • Legal Position Of Partnership: Under Indian Partnership Act 1932 which provides for partnership so it is necessary that a banker dealing with a partnership firm should verify whether firm registered or not. • Authority Of The Partners: Section 19 of the Partnership Act, 1932 deals with the implied authority of a partner as an agent of the firm and Section 22 deals with the mode of doing acts to bind the firm. • Insolvency Of Partner: If at the time of insolvency of one of the partner the firm's account is in credit then the other partner can operate the same but the

ambitiousbaba.com Online Test Series

banker should obtain a fresh mandate and all previous cheque issued by the insolvent partner may be paid provided the partner confirm the same. • Death Of Partner: As the death of partner dissolves the Partnership firm upon receipt of such information bank's are required to stop the transaction of firm in a running credit facility like Cash credit, bank allow the transaction in a separate account so that the business of firm is not adversely affected.

Hindu Undivided Family • A banker dealing with Hindu Undivided Family should known the 'karta' who is the senior most member of family. • Banker should ensure that 'karta' of family deal's with the bank and borrows only for the benefit of family business. • The application to open an account must be signed by all members and all adult members should be made jointly. Powers and duties of the manager A manager or ‘Karta’ of a joint family has the following powers and duties: Power • Right to possession and management of the joint family property • Right to income from the joint family property • Right to represent the joint family • Right to sell the joint family property for purpose Duties • Duty to run the family business and manage the property for the benefit of the family. • Duty to account for the income from the joint family business and property. Companies A company is another type of borrower, which a banker deals with in his business of lending. Basic laws governing company In India, now companies are governed by the Companies Act, 2013. Companies as per the Companies Act, 1956 are required to be registered under the Act. Section 11 of the Companies Act 1956 provides that an association or partnership consisting of more than 10 in the case of banking business and more than 20 in the case of other business. Incorporation of Company Section 12 of the Companies Act, 1956 provides that any 7 or more persons or where a company are known by two document called “Memorandum of Association” and “Articles of Association”. Memorandum of Association: It contains name of the Company, its authorised capital, registered office and liability of shareholders, objects of the company etc. Articles of Association: Articles of Association rules and regulations governing the internal management of the company. Ex: NO. of directors, Borrowing powers of the company, Procedure for transfer and transmission of shares ETC. Statutory Corporations

ambitiousbaba.com Online Test Series

Companies are Registered under companies Act 1956 , There may be corporation established by an Act of Parliament.These are called Statutory Corporations. For example state Bank of India is established under state Bank Act 1955. Trust and co-operative societies • Club, societies, schools and other non trading association such bodies if not incorporated under the laws governing them cannot enter into any transactions. These bodies are usually governed by companies Act or Co-operative societies Act. • Trust are governed by Indian Trust Act 1882. A banker dealing with trust should acquaint himself with the respective laws applicable to them. • Trustee manages trust, the powers and duties of trustee are provided in trust deed and are also regulated by the respective laws applicable to such trust's. Banker dealing with a trust should ensure that all the permission required for taking a loan is obtained from respective Government authorities. Chapter 10: Indemnities Contract of Indemnity Defined Section 124 of the Indian Contract Act, 1872 defines contract of indemnity as follows: Contract of indemnity” defined: A contract by which one party promises to save the other from loss caused to him by the conduct of the promisor himself, or by the conduct of any other person, is called a “contract of indemnity.” —A contract by which one party promises to save the other from loss caused to him by the conduct of the promisor himself, or by the conduct of any other person, is called a “contract of indemnity.”" Illustration A contracts to indemnify B against the consequences of any proceedings which C may take against B in respect of a certain sum of 200 rupees. This is a contract of indemnity. A contracts to indemnify B against the consequences of any proceedings which C may take against B in respect of a certain sum of 200 rupees. This is a contract of indemnity." Differentiate between Indemnity and Guarantee. INDEMNITY GUARANTEE It refers to reimbursement of loss. It is merely a security to Creditor. It is explained in Section 124 of It comes under Section 126 of Indian Contract act, 1872. Indian Contract Act, 1872. Only two parties i.e. Indemnifier Includes three parties- surety, and Indemnified. principal debtor and creditor. Only 1 contract is done. Includes 3 contracts between the 3 parties. Primary liability. Secondary liability

Right of An Indemnity Holder Section 125 of the Contract Act lays down the rights of an indemnity Holder. Rights of indemnity-holder when sued.—The promisee in a contract of indemnity, acting within the scope of his authority, is entitled to recover from the promisor— —The

ambitiousbaba.com Online Test Series

promisee in a contract of indemnity, acting within the scope of his authority, is entitled to recover from the promisor—" • All damages which he may be compelled to pay in any suit in respect of any matter to which the promise to indemnify applies; • All costs which he may be compelled to pay in any such suit if, in bringing or defending it, he did not contravene the orders of the promisor, and acted as it would have been prudent for him to act in the absence of any contract of indemnity, or if the promisor authorized him to bring or defend the suit; • All sums which he may have paid under the terms of any compromise of any such suit, if the compromise was not contrary to the orders of the promisor, and was one which it would have been prudent for the promisee to make in the absence of any contract of indemnity, or if the promisor authorized him to compromise the suit. Chapter 11: Bank Guarantees Bank Guarantees Guarantee is defined in section 126 of Indian Contract Act. There are three parties to a contract of guarantee A ‘contract of guarantee’ is a contract to perform the promise, or discharge the liability, of a third person in case of his default. • Surety: The person who gives the guarantee is called the ‘surety’ • Principal debtor: The person in respect of whose default the guarantee is given is called the ‘principal debtor’ • Creditor: The person to whom the guarantee is given is called the ‘creditor’ Types of Bank Guarantees • Financial Guarantee: These are guarantees issued by banks on behalf of the customers, in lieu of the customer being required to deposit cash security or earnest money. • Performance Guarantee: These are guarantees issued by banks on behalf of its customers whereby the bank assures a third party that the customer will perform the contract entered into by the customer as per the conditions stipulated in the contract, failing which bank will compensate the third party up to which the amount specified in the guarantee. • Deferred Payment Guarantee: Under this type of the guarantee, the banker guarantees payment of installments over a period of time. This type of the guarantee is required when the customer on credit purchases goods/machinery and payment is to be made in installments on specified dates. A deferred payment guarantee constitutes an undertaking on the part of the bank to make payment of deferred installments to the seller (beneficiary) on due dates in the event of default by the customer (buyer).

Issuance of Bank Guarantee – Precautions to be taken The liability of the bank under a guarantee depends on two fundamental criteria’s, the amount guaranteed and the period of the guarantee.

ambitiousbaba.com Online Test Series

• Amount Guaranteed • Period of Guaranteed Claim period in a guarantee: In a guarantee, it is necessary to provide for a period slightly longer than the validity period, for the beneficiary to make a claim. The claim period is usually a few months more than the validity period of the guarantee. Since if the debtor were to commit a default on the last day of the validity period, then the beneficiary, at the earliest, invokes the same only on the next day. Amendment to Section 28 of Indian Contact Act and its effect on Bank Guarantee: Prior to the amendment of Section 28 of the Indian Contract Act, 1872 most bank guarantees had a standard clause at the end of their guarantee agreements. As per this clause, the beneficiary was required to enforce his claims within a period of three to six months, failing which, the bank’s liability was extinguished and hence the rights of the beneficiary. Chapter 12 : Letters Of Credit Letters Of Credit An Letters Of Credit can be compared to guarantee given by a bank on behalf of its customer to the effect that the bank would make payment to the beneficiary when the beneficiary presents the documents as it required in the LC. They are not negotiable instrument. Parties to a Letter of Credit • Applicant-Buyer-Importer-Opener: He is the person who applies to bank for Letter of Credit. Ex: Mr. Srivastav & Co. • Issuing Bank: The bank which opens the Letter Of Credit on the request of applicant/Buyer. Ex: Bank of Baroda • Beneficiary-Exporter-Seller: The person who is entitled to receive the benefit under Letter of Credit. Ex: M.s jha & Co. • Advising Bank / Notifying Bank: The bank in the Beneficiary/Exporters Country through which the letter of credit is advised to the beneficiary. Ex: The UK Bank • Negotiating Bank: The bank in the Beneficiary/Exporters Country which negotiate the bills (i.e. make payments on the bills drawn by the seller and accepts the documents.) If the LC specifies a bank then that bank is the Negotiating Bank and is also called the Nominated Bank / Paying Bank. If the LC however does not specify the bank, than any bank can be negotiating bank. • Confirming Bank: The advising bank is only required to advise the credit to the beneficiary. If however in addition to advising the credit the advising bank were to confirm it, then the advising bank will also become confirming Bank. • Reimbursing Bank: It is the bank which is appointed by the Issuing Bank to make reimbursement to the Negotiating, Paying or confirming Bank. Types of Letters of Credit • Acceptance Credit: Ordinary Letters of Credits are usually sight credits, i.e. immediate payment should be made of the bills drawn by the beneficiary. Such letters of credit under which usance bills can be drawn is an Acceptance Credit or Time Credit.

ambitiousbaba.com Online Test Series

• Revocable Credit: A revocable LC is a credit that can be amended / cancelled by the issuing bank without prior notice to the beneficiary. However, if any negotiating bank has acted on the credit prior to receipt of the notice of amendment/cancellation then the issuing bank is bound to reimburse the negotiating bank. • Irrevocable Credit: is a credit that can neither be amended nor cancelled without the consent of the beneficiary. • Confirmed Credit: If a bank advising the credit to beneficiary adds its own confirmation to the credit, then the credit would be called a confirmed credit. Only irrevocable credit can be confirmed With Recourse and without Recourse Credits : when beneficiary draws a bill under a LC he is liable if the drawee fails to make payment. These kind of bills are called recourse LCs. The beneficiary can exclude liability by adding to the bill following words “without recourse” • Transferable Credits: As such the rights under an LC cannot be transferred and is vested in the beneficiary. A transferable credit is one under which the beneficiary can transfer his rights to third parties. Unless specifically stated an LC is not transferable. • Back-To-Back Credits: The beneficiary in whose favour an LC is issued uses the same to obtain another credit from his (beneficiary’s ) bank in favor of the supplier. There are three banks involved in this type of LC. (Issuing Bank, Advising Bank, Third bank which issued an ancillary credit against the security of the original credit. • Anticipatory Letter of Credit 1. Red Clause Letter of credit - In a usual LC transaction the beneficiary will be entitled to receive payment only on his handing over the documents and bills drawn under the LC to the negotiating bank. However in certain credits the beneficiary will be entitled to get and advance of the price. These credits contains a “Red Clause” which authorises an intermediary bank to make an advance to the beneficiary before shipment. 2. Green Clause Letter Of Credits –This is refinement of the “Red Clause”. This type of LC not only permits preshipment advance but also permits advances to the exporter to cover storage at the port of shipment.The Red Clause and Green Clause credit are called Anticipatory Credits. 3. Revolving Letter of Credit: In this type of credit though amount is fixed, it can be renewed as soon as the earlier bills have been paid. Documents Under a Letter Of Credit • Bill of Exchange • Invoice • Transport Documents • Bills of Lading • Airway Bill • Post Parcel Receipt and Courier Receipt • Insurance Document • Other Documents: Certificate of origin, Certificate of Weight or quality or analysis, Health authorities certificate etc.

ambitiousbaba.com Online Test Series

Uniform Customers and Practices for Documentary Credits- UCPDC 600 The ICC Banking Commission approved the UCP 600, ICC’s new on documentary credits, on 25 October 2006. UCP 600, which come into effect in 1 July 2007, contains significant changes, including: • A reduction in the number of articles from 49 of UCP 500 to 39. • New articles on “Definitions” and “Interpretations” provide more clarity and precision in the rules. • The replacement of the phrase “reasonable time” for acceptance or refusal of documents by a definite period of five banking days. • New provisions which allows for the discounting of deferred payment credits. • A definitive description of negotiation as “purchase” of drafts of documents. Chapter 13: Deferred Payment Guarantee Deferred Payment Guarantee A third Party, mostly banks and financial institutions, guarantee the payment of the instalments. This guarantee ensure timely payment of the instalments to the seller/exporter, failing which, the guarantee can be invoked and payment received. To understand better the deferred payment guarantee, it is necessary to understand how a payment is made in a deferred payment contract and how the same is guaranteed by a bank. Method of Payment In a contract for import of goods on deferred payment terms, the importer is required to make payments in instalments over a period of time which may range from 1 to 7 years, in a normal deferred payment contract. The payment is usually done on the following terms: • Advance payment of 10% to 15% of the price of the goods is made by the buyer. • Another 10% to 15% on receipt of document under letter of credit. • The balance amount is paid in instalments spread over a period of 1 to 7 years, which is secured by a ‘Deferred Payment Guarantee’. In a deferred payment guarantee, which as stated earlier, issued by banks and financial institutions , what is guaranteed, is the timely payment of instalments and interest if provided. This is done by issuing a deferred payment guarantee in which the following terms are mandatory: • The supply of goods by the seller to the buyer and the seller agreeing to postpone the payment of the price, this being the consideration of the guarantee; • The Payment schedule of both the instalment and the interest; • The unconditional and irrevocable assurance of the bank that it would make payments on the invocation of the guarantee. Chapter 14: Law Relating to Bill finance Bill Financial

ambitiousbaba.com Online Test Series

Bill finance is one of the modes of lending by a banker. A compared to other modes of financing, Bill finance offers a banker an easy mode of lending. Bill finance involves discounting or purchase of commercial bills arising out of sale of goods. Bill finance, as compared to cash credit and overdraft, has the following advantage; • The underlying transactions are easily identifiable • There is definite data of repayment • The bill will carry more than one signature if it on usance basis • It represents an easily transferable asset and in case of need the same can be rediscounted to improve the liquidity of the bank. Classification of Bills • Inland Bills: Bills drawn or made in India and made payable in, or drawn upon any person resident in India. It may be made payable in a foreign country. • Foreign Bills (Section 12 NI Act): Bills drawn outside India and made payable in or drawn upon any person resident in any country outside India / resident in India • Demand Bills (Section 19): It is an instrument payable on demand and no time for payment is specified therein. Demand Bill is otherwise called sight bill. • Usance Bills: Bill Payable after sight : a bill payable otherwise than on demand. It specifies normally a time for payment of the value it represents. • Clean Bills: is a bill of exchange drawn as per requirements of NI Act and is not supported by documents of title of goods. • Documentary Bills: A bill of exchange accompanying documents of title of goods. These bills are drawn to claim price of goods supplied. 1. Bills drawn with an instruction to deliver against payment/D.P. Bills – In a transaction of supply of goods, a seller draws a bill on the buyer and sends the same to his banker along with document of title of goods like bill of lading etc. The seller instructs the banker to deliver the bill and documents of title of goods only when buyer pays the price of goods. 2. Bills drawn with instruction to deliver against acceptance / D.A.Bills – An usuance bill supported by document of title of goods bearing an instruction that the documents can be delivered, if the buyer accept the bill of exchange

Negotiable Instrument Act 1881

Section Description

5 “Bill of exchange is defined” as “ instrument in writing containing an unconditional order signed by maker directing a certain person to pay certain sum of money only to, or to the order of a certain person or to the bearer thereof

ambitiousbaba.com Online Test Series

7 Drawer, Drawee and Payee

8 Holder of Bill of exchange means a person entitled in his name to possess the bill and recover the amount presented by Bill.

9 “Holder in Due Course” means any person who for consideration become the possessor of the bill

10 “Payment in Due Course” means payment in accordance with tenor of the bill of exchange to the holder or holder in due course in good faith and without negligence

14 “Negotiation” : When a bill is transferred to any person so as to entitle him to claim the amount represented by bill, then such transfer is called Negotiation

15 “Endorsement” : If the holder of instrument signs the bill of exchange for the purposeof transferring it, such signing is called Endorsement.

19 Demand Bills

30 Liability of Drawer

32 Liability of Acceptor/Drawee of Bill

35 Liability of Endorser

79 Interest rate specified

ambitiousbaba.com Online Test Series

80 Interest when no rate is specified

Various types of Bill Finance • Bill Purchase: When the bank negotiate bills on demand, whether clean or documentary, the facility is known as bill purchase. • Bill Discount: This facility is extended by banker when the bills of exchange are payable after a particular period that is bills payable otherwise on demand. • Advance against Bills for Collection: When the bank advance against the bills, which are in course of collection, the facility is known as advance against bills for collection. Chapter 15: Law Relating to Securities and Modes of Charge- 1 Mortgage Section 58 of the Transfer of Property Act, 1882 defines “ A mortgage is the transfer of interest in specific immoveable property, for the purpose of securing the payment of money advanced or to be advanced by way of loan, on existing of future debt or the performance of an engagement which may give rise to a pecuniary liability”. The transferor is called the “mortgagor” and the transferee a “mortgagee”. The principal money and interest of which payment is secured is called “mortgage money” and the instrument by which the transfer is effected is called “mortgage deed”. Six Different kinds of mortgage 1. Simple Mortgage: Section 58(B) Transfer of Property Act • The mortgagee has no power to sale without Court Intervention • No right to get any payments out of the rents • Not in possession of the property • Registration is mandatory. 2. Mortgage by conditional sale: Section 58 (c) Transfer of Property Act • The sale is ostensible and not real • If the money is not paid on the agreed date, the ostensible sale will become absolute upon the mortgagor applying to the court and getting a decree in his favour. • The mortgagee can sue for foreclosure, but not for sale of the property. • There is no personal covenant for repayment of the debt and therefore bankers do not prefer this type of the mortgage. 3. Usufructuary Mortgage: Section 58(d) Transfer of Property Act • The mortgagee is put in possession of the mortgaged property. Here by possession means legal possession not a physical possession. • The mortgagee has the right to received rents and profits accruing from the property. • He mortgagee cannot sue the mortgagor for repayment of the debt., sale or foreclosure of the mortgaged property.

ambitiousbaba.com Online Test Series

• If the mortgagor fails to bring a suit for redemption within 30 years, the mortgagee becomes absolute owner of the property. • Banker do not prefer this form of mortgage for the following reasons • There is no personal covenant to repay the debt. • It will take very long time to recovery money through this process 4. English Mortgage : Section 58(e) Transfer of Property Act • It provides personal covenant to pay on a specified date notwithstanding the absolute transfer of the property to the mortgagee. • There is an absolute transfer of the property in favour of the mortgagee. Property shall be re-conveyed to the mortgagor in the event of repayment of mortgage money. • The mortgagee can sue the mortgagor for the recovery of the money and can obtain a decree for sale. 5. Mortgage by deposit of title deeds / Equitable Mortgage: Section 58(f) Transfer of Property Act • Where a person in any of the towns notified by the govt. concerned may, delivers to a creditor or his agent documents of title to immoveable property, with intent to create a security thereon, the transaction is called a mortgage by deposit of title deeds. 6. Anomalous Mortgage – Section 58(g) Transfer of Property Act • A mortgage which is not a simple mortgage, a mortgage by conditional sale and unufructuary mortgage and English mortgage or a mortgage by deposit of title deeds within the meaning of this section, is called an “Anomalous Mortgage”. • It is negatively defined and should not be anyone of the mortgages listed above. • It is combination of two mortgages: Simple and usufructuary mortgage • usufructuary mortgage accompanied by conditional sale Difference between Equitable Mortgage and Pledge Pledge Mortgage Pledgee acquires only a limited interest Here the legal ownership passes to in the property and ownership remains mortgagee of course, subject to the with the pledger. mortgagor to redeem the property. The Pawnee has ‘special property’ in the The mortgagee, as a rule, takes decree of goods pledged and can sell the same in a Court of Law before having recourse the event of default by the pledger, of against the property mortgaged. course, after giving reasonable notice. Pawnee has no right foreclosure. He can In certain cases, the mortgagee can only sell the property to realize his dues. foreclose the property.

Chapter 16: Law Relating to Securities and Modes of Charge 2 Pledge

ambitiousbaba.com Online Test Series

Pledge means bailment of goods for purpose of providing security for payment of debt or performance of promise (as per the Section 172 of Contract Act 1872). The Requirements are to be satisfied: • There must be bailment of goods (bailment means delivery of goods); • The bailment must be, by or on behalf of the debtor; and • The bailment, must be for the purpose of providing security for the payment of a debt or performance of promise. • Pawnor – The person whose goods are bailed • Pawnee – The person who takes the goods for security Advantages of Pledge: • The goods are in the custody of the pawnee and, therefore, it is easy to sell in case of default. If the banker takes proper precautions, through periodical inspections, it will not be possible for the pawnor to create subsequent charges against the same goods. • Because of close supervision, it will not be possible for the pawnor to manipulate the stocks. • Even if the goods are lost, the banker can recover the amount under the insurance policy. • The formalities connected with the pledge are simpler then in the case of Mortgage.

Difference Between Hypothecation and Mortgage BASIS FOR MORTGAGE HYPOTHECATION COMPARISON Meaning Mortgage implies a legal Hypothecation refers to an process wherein the title of real arrangement, wherein a person estate property passes from the borrows money from bank by owner to the lender, as a collateralizing an asset, without collateral for the amount transferring title and possession. borrowed. Applicable to Immovable asset Movable asset Legal Mortgage deed Hypothecation agreement Document Defined under Transfer of Property Act, 1882 SARFAESI Act, 2002 Indicates Transfer of interest in the asset. Security for payment of an amount. Loan amount High Comparatively low Tenure Long Comparatively short

Chapter 17: Registration and Satisfaction of Charges Types of Charges “Charges” registered under the Companies Act can be classified into two types: Fixed Charge: ‘Fixed Charge’ is also called ‘specific Charge’. It extends over a specific property or properties of the company.

ambitiousbaba.com Online Test Series

Floating Charge: A floating charge is a security interest over a fund of changing assets of a company or other legal person. Unlike a fixed charge, which is created over ascertained and definite property, a floating charge is created over property of an ambulatory and shifting nature. Provisions of Law Relating to Registration of Charges Section 77, Companies Act 2013: This section provide that ‘charge’ means and includes mortgage/charge over any or all properties of the company within or outside India. Section 77(1), Companies Act 2013: This section provides that the charge created over the properties of the company shall be registered with the Registrar of Companies within 30 Days of creation of charge. Section 77(2), Companies Act 2013: This section provide that the Registrar shall give a certificate under his hand of the Registration of any charge registered, stating the amounts thereby secured. Section 78, Companies Act 2013: This section provides that in case the charges is not registered by the Company, the charge holder may apply for filling of charge in the prescribed manner within a period 14 Days after giving the Company a notice in this regard. Section 79, Companies Act 2013: This section provide that if a company acquires a property charged under Section 77, then the company shall declare the same by filling the particulars of the property, so acquired, subject to charge. Section 80, Companies Act 2013: This section provides that after registration of charge created, any other person acquiring such property charged or any party thereof, shall be deemed to have notice to the charge registered and shall take property subject to such charge. Section 82, Companies Act 2013: This section provide that the Company shall intimate the Registrar of any payment/satisfaction in full of any charge registered within a period 30 days. Section 83, Companies Act 2013: Power of Registrar to Make Entries of Satisfaction and Release in Absence of Intimation from Company. Section 84, Companies Act 2013: This section provides that in case an order for appointment of receiver or manager is obtained by any person, then such person shall give notice of such appointment of receiver/ manager within a period of 30 days from the date of such order. Section 85, Companies Act 2013: This section requires the company shall maintain at its registered office, a register of charges in prescribed form and manner. Section 86, Companies Act 2013: This section provides that contravention of any the aforesaid provision shall be punishable with a fine not less than Rs 100000 but which may extend to Rs 1000000 and every officer in default shall be punishable with imprisonment for a term of upto 6 months. Section 86, Companies Act 2013: This section provides that the Central Govt may direct that the time for filing charge may be extended upon being satisfied of a few conditions mentioned in the section. Chapter 18: SARFAESI ACT, 2002 SARFAESI Act

ambitiousbaba.com Online Test Series

The SARFAESI Act gives detailed provisions for the formation and activities of Asset Securitization Companies (SCs) and Reconstruction Companies (RCs). Scope of their activities, capital requirements, funding etc. are given by the Act. RBI is the regulator for these institutions. As a legal mechanism to insulate assets, the Act addresses the interests of secured creditors (like banks). Several provisions of the Act give directives and powers to various institutions to manage the bad asset problem. Following are the main objectives of the SARFAESI Act. • The Act provides the legal framework for securitization activities in India • It gives the procedures for the transfer of NPAs to asset reconstruction companies for the reconstruction of the assets. • The Act enforces the security interest without Court’s intervention • The Act give powers to banks and financial institutions to take over the immovable property that is hypothecated or charged to enforce the recovery of debt. Major feature of SARFAESI is that it promotes the setting up of asset reconstruction (RCs) and asset securitization companies (SCs) to deal with NPAs accumulated with the banks and financial institutions. The Act provides three methods for recovery of NPAs, viz: • Securitization; • Asset Reconstruction; and • Enforcement of Security without the intervention of the Court.

Definition of SARFAESI Act, 2002 In SARFAESI Act, 2002, the definitions are given in Section 2 of the Act. 1. Preamble – An act to regulate Securitisation and reconstruction of financial assets and enforcement of security interest and for matters connected therewith or incidental thereto. 2. Appellate Tribunal – Any person aggrieved by the order passed by “Debt Recovery Tribunal” can file an appeal to the authority called as Appellate Tribunal. 3. Asset Reconstruction - An asset reconstruction means acquisition by an ARC of any right or interests of any Bank or Financial Institution in any financial assistance for the purpose of realisation of such financial assistance. 4. Bank – SARFAESI Act, All the banking companies, Nationalised banks, Cooperative banks and RRBs. 5. Board – The Word ’Board’ is used SEBI under SEBI Act 1992. 6. Borrower – Any person, who has been granted financial assistance, given guarantee. 7. Central Registry – Under this Act, ‘Central Registry’ All the transactions of asset Securitisation, reconstruction as well as transactions of creating security interest will have to be registered with this authority. 8. Debt Recovery Tribunal – SARFAESI Act, Debts Recovery Tribunal are those tribunals established under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, to deal with the cases of recovery of debts above Rs. 10lacs due to the banks and financial institutions. 9. Default: Default is failure to meet the legal obligations of a loan, for example when a home buyer fails to make a mortgage payment, or when a corporation or government fails to pay a bond which has reached maturity.

ambitiousbaba.com Online Test Series

10. Financial Assistance: Whenever any bank or financial institution grants a loan or advance or makes subscription of debenture or bonds or gives guarantee or issues letters of credit or extends other credit facility, it is called financial assistance. 11. Financial Asset - a claim to any debt or receivables and includes : • A claim to any debt or receivables or part thereof whether secured or unsecured, or • Any debt or receivable secured by mortgage of or charge on immovable property or • A mortgage, charge, hypothecation or pledge of moveable property, or • Any right of interest in the security, whether full or part, securing debt, or 12. Financial Institution: Financial Institution means • A public financial institution within the meaning of the Companies Act, 1956 (now ICA 2013) • Any institution specified by the Central Government under the Recovery of Debts due to Bank and Financial Institutions Act, 1993. • The ‘International Finance Corporation’ established under the International Finance Corporation (Status, Immunities and Privileges) Act, 1958. 13. Hypothecation: Hypothecation means • A change in or upon any moveable property • Existing or future • Created by a borrower • In favour of a secured creditor 14. Non-Performing Asset: A non-performing loan is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 90 days, but this can depend on the contract terms. 15. Originator: Originator is the owner of a financial asset that is acquired by a securitization company or reconstruction company for the purpose of securitization or asset reconstruction. 16. Obligor – Borrower or any other person liable to pay to the bank 17. Property: Property means • Immovable property; • Movable property; • Any debt or any right to receive payment of money, whether secured or unsecured; • Receivables, whether existing or future; • Intangible assets, being know-how, patent, copyright, trade mark, licence, franchise or any other business or commercial right of similar nature; 18. Qualified Institutional Buyer: Means a financial institution, insurance company, bank, state financial corporation, state industrial development corporation, 4[trustee of securitisation company or reconstruction company which has been granted a certificate of registration under sub‑section (4) of section 3 or any asset management company making investment on behalf of mutual fund] or a foreign institutional investor registered under the Securities and Exchange Board of India Act, 1992 (15 of 1992) or regulations made thereunder, or any other body corporate as may be specified by the Board. 19. Reconstruction Company: Means a company formed and registered under the Companies Act, 1956 (1 of 1956) for the purpose of asset reconstruction; 20. Scheme: Means a scheme inviting subscription to security receipts proposed to be issued by a securitisation company or reconstruction company under that scheme;

ambitiousbaba.com Online Test Series

21. Securitisation: Means acquisition of financial assets by any securitisation company or reconstruction company from any originator, whether by raising of funds by such securitisation company or reconstruction company from qualified institutional buyers by issue of security receipts representing undivided interest in such financial assets or otherwise; 22. Securitisation Company : The minimum capital requirement is Rs.200 Crore at the time of registration, and these companies are required to maintain minimum capital adequacy ratio of 15% of total asset acquired or Rs.100 crore whichever is less. It is company registered under companies act 1956 for the purpose of securitisation. The company also needs registration with RBI. 23. Security Agreement: Means an agreement, instrument or any other document under which security interest is created. 24. Secured Asset means property on which security interest is created. The powers given by SARFAESI Act for enforcement of securities are against secured assets only. 25. Secured Creditor: Means any bank or financial institution or any consortium or group of banks or financial institutions and includes— • debenture trustee appointed by any bank or financial institution; or 5[(ii) securitisation company or reconstruction company, whether acting as such or managing a trust set up by such securitisation company or reconstruction company for the securitisation or reconstruction, as the case may be; or] • any other trustee holding securities on behalf of a bank or financial institution, in whose favour security interest is created for due repayment by any borrower of any financial assistance; 26. Secured Debt means a debt which is secured by any security interest. 27. Secured Interest – Any right, title and interest of any kind whatsoever upon the property created in favour of any secured creditor is called as secured Interest. 28. Security Receipt: Means a receipt or other security, issued by a securitisation company or reconstruction company to any qualified institutional buyer pursuant to a scheme, evidencing the purchase or acquisition by the holder thereof, of an undivided right, title or interest in the financial asset involved in securitization. 29. Sponsor is a person holding not less than 10% of the paid up equity capital of securitisation company. • When any bank or financial institutions creates a charge against property, with which authority the transaction will have to be registered under the SARFAESI Act, 2002 – With the Central Registry • When the provisions of SARFAESI Act, 2002 can be invoked for proceeding against the charged property – When there is default in repayment and the bank declares the account as NPA. • Acquisition of financial asset from the originator is the main function of securitisation company. • If the borrower does not pay within 60 days after notice by the secured creditor the creditor can take possession of the security. • Enforcement of SARFAESI Act only if security is not in possession of the bank and financial institution. Chapter 19: Enforcement of Security Interest

ambitiousbaba.com Online Test Series

Right to Prefer Application to DRT • Any person, including borrower, aggrieved by the any of the measures taken by the SC or his authorised officer for taking possession of the security may apply to the DRT with prescribed fees within 45 Days. • If application by borrower, he has to deposit 50% of the amount claimed in the notice under Section 13(2) of the SARFAESI Act. • The DRT has to dispose of the application within 60 Days. If not possible, then DRT has to record reasons for delay but such delay should not be beyond 4 Months. If any such application is not disposed within 4 Months, the aggrieved party can prefer an application to the Appellate Tribunal for seeking early disposal of the application. Appeal to Appellate Authority Any person aggrieved by any order by the DRT under can prefer appeal along with the prescribed fees to the Appellate Tribunal within 30 Days from the date of the receipt of the order of the DRT. Different fees for borrower? appeal and appeal by any other than borrower. The borrower has to deposit 50% of the debt claimed by the SC. The Tribunal has power to reduce this amount up to 25%.

Right of Borrower for Compensation and Costs 1. If the DRT /AT as the case may be, on the appeal holds that • The possession of secured asset by the SC is not in accordance with the provisions of the Acts or Rules • The SC should return such secured asset to the concerned borrower, with compensation and cost as may be determined by DRT/AT. 2. No pecuniary limit is fixed by the Act for the Appellate Jurisdiction. • If any Person contravenes or attempts to contravenes provisions of the SARFAESI Act or rules there under he shall be punishable with imprisonment for a term which may extend to one year or with fine or with both. Section 12 : RBI is statutorily empowered to issue directions to the SC/RC. If any such company fails to comply with any of the directions issued by the RBI then such company is punishable with fine not exceeding 5 Lakh rupees for the default. In case of further continuation of the offence additional fine is up to Rs. 10 thousand per day of default can be imposed. Section 31: Exclusions of possessory securities to which act is NOT APPLICABLE • A Lien on any goods, money or security given by or under the Indian Contract Act, 1872. • A pledge of moveable within meaning of Section 172 of the Indian Contract Act, 1872. • Any conditional sale, hire-purchase or lease or any other contract in which security interest has been created. • Any rights of unpaid seller. • Any security interest for securing repayment of any financial asset not exceeding Rs. 1 Lakh rupees. • Any security interest created on agricultural land.

ambitiousbaba.com Online Test Series

Note: Section 20, 21 to 27 that provide for registration of security interest created, satisfaction of charge created. Chapter 20 : Offences and Penalties PENALTIES Section 23 of the Act provides for filing of the particulars of charge created. Section 24 has provides for modification of the charge filed and the Section 25 has provides that the satisfaction of the charge has to be intimated to the central registrar. If the securitisation or reconstruction company or the secured creditor fails to perform any of the duties as stated above, the company and the officers concerned for the default, as per provisions of this section, are punishable with a fine that may extend to five thousand rupees for each day during which the default continues. Penalties For Non-Compliance Of Directions Of Reserve Bank Of India Under the Section 12 or 12A of the SARFAESI Act, the Reserve Bank of India is statutorily empowered to issue directions to the securitisation or reconstruction company. If any such company fails to comply with any of the directions issued by the Reserve Bank of India, then such company is punishable with a fine not exceeding Rs. 5 lakh for the default. In case of further continuation of the offence, an additional fine up to Rs. 10,000 per day of the default can be imposed. OFFENCES If any person: 1. contravenes, or 2. attempts to contravene, or 3. abets the contravention of the provisions of the SARFAESI Act or rules made thereunder, he shall be punishable with imprisonment for a term, which may extend to one year or with a fine or both. Cognisance Of Offences Section 30 provides that no court shall take cognizance of any offence punishable under section 27 in relation to non-compliance with the provisions of section 23, section 24 or section 25 or under section 28 or section 29 or any other provisions of the SARFAESI Act, except upon a complaint in writing made by an officer of the Central Registry or an officer of the RBI, generally or specially authorized in writing in this behalf by the Central Register or, as the case may be, the Reserve Bank and congnisance of the offence under the SARFAESI Act shall be taken by the Metropolitan Magistrate or the Judicial Magistrate of First class only. No Court below the rank than this can take cognizance of such offences. Chapter 21: Procedure Of Tribunals Application to the Tribunal The Purpose for filing application is for Recovery of the debt due to them. DRT Act About

ambitiousbaba.com Online Test Series

Section19(1) Application for recovery to Tribunal within local limits of whose jurisdiction Section19(2) Recovery of the debt is from same person, any other bank also has to recover debt, they may join. Section19(3) No need to pay the fee, if Case is transferred from Civil Court to Tribunal Section19(4) On receipt of application under sub-section(1) or (2) the Tribunal has to issue summons to the defendant requiring him to show cause within 30 days of the service of summons as to why the relief prayed for should not be granted Section19(5) The Defendant has to present written statement at or before first hearing or within such time as the Tribunal may permit. Section19(6) defendant has to claims any amount on first hearing from the applicant and to have setoff against the applicant’s demand with ascertained sum of money Section19(7) When written statement contains claim and set off, the written statement has the same effect as a plaint in a cross-suit. Section19(8) Counter claim Section19(9) Counter claim has the same effect as a plaint in cross-suit so as to enable the Tribunal to pass a final order in respect of both the original and Counter Claim. Section19(10) The applicant is at liberty to file a written statement to the counter claim of the defendant within such period may be fixed by the Tribunal Section19(11) Counter Claim to be disposed as an Independent action. Section19(12) The Tribunal may pass interim order against the defendant to debar him from transferring, alienating, or otherwise dealing with or disposing of any property/asset without the permission of the Tribunal Section 19(13 Tribunal Dispose of the property, Damage to the property, A and B) remove/whole any part of the property Section19(14) When the applicant wants that the properties of the defendant should be attached. Section19(15) The Tribunal can pass conditional attachment order.

ambitiousbaba.com Online Test Series

Section19(16) If any attachment order is passed without complying the requirements of Subsection (13), then such order is void. Section19(17) The Tribunal has power to pass interim orders, attachment orders etc. If there is any breach of the orders, the Tribunal may order that the properties of the person guilty of the breach of the order be attached and person be detained in civil prison for a term not exceeding 3 months. Section19(18) appoint a receiver of any property • remove any person from the custody/possession of property • confer powers to receiver. • appoint a commissioner for preparation of an inventory of the property of the defendant or for sale thereof Section19(19) If the recovery certificate is granted against a company, the Tribunal may order that the sale proceeds of such company be distributed among the Secured Creditors as provided in Section 529A of the Companies Act. Section19(20) Pass interim or final order for payment of amount including interest thereon Section19(21) The tribunal is required to send copy of every order by it to the applicant and the defendant. Section19(22) Issue a Certificate of Recovery to the recovery officer for recovery of the amount of debts. Section19(23) Sending Certificate of Recovery to other tribunals if it is local limits of other jurisdiction Section19(24) Application received by the tribunal for recovery of debt shall be disposed of finally within 180 days Section19(25) The tribunal may make such orders and give such directions as may be necessary

Appeal to the Appellate Tribunal • Any person aggrieved by the order passed by Under DRT Act, may appeal to an Appellate Tribunal. • The appeal is required to be filed within 45 days from the date on which copy of the order is received. At the time of filing appeal Section 21 of the DRT Act 75% of the amount shown as due in the order required to be deposited by the appellant. • Appellate Tribunal should disposed off the appeal within 6 months. • These is no provision in the Act for further appeal against the order passed by the Appellate Tribunal. However writ Jurisdiction of High Court under Article 226 and

ambitiousbaba.com Online Test Series

Supervisory jurisdiction of High Court as well as Special Leave Petition before the Supreme Court are not Barred.

Chapter 22: The Legal Services Authorities Act, 1987: Lok Adalats Organisation of lok Adalats Lok Adalts are organized by the State Authority, the Distt. Authority, the Supreme Court Legal Service Committee or High Court Legal Services Committee or Taluk legal Services committee, at such intervals and places as deemed appropriate. The Lok Adalts are created under Legal Services Authority Act 1987. Jurisdiction of Lok Adalats A Lok Adalt has jurisdiction to determine and arrive at a compromise or settlement between the parties to the dispute. Types of Cases It deals with the cases where (a) The parties to the dispute agree to refer the issue to Lok Adalt; (b) One of the parties approaches the Lok Adalt and Lok Adalt is satisfied that there are chances of settlement. In such case, the Adalt issues notice to the other party; (c) In the opinion of the Lok Adalt, the cognizance of the dispute can be taken. Note: The Monetary ceiling of amounts regarding which civil disputes can be settled under this mechanism is presently Rs 20lacs. The repayment period should be within one to three years. Nature of Award of The Lok Adalats The Award of Lok Adalat shall be deemed to be a decree of a civil court or an order of any other court. In case of compromise or settlement arrived at by a Lok Adalat the court fee paid in the case shall be refunded in the manner provided under the Court fees Act, 1870. Every award shall be binding on all the parties to the dispute. No appeal shall lie in any court against the award. Chapter 23: Consumer Disputes Redressal Agencies

Composition of Forum District State National Established by State Govt State Govt Central Govt

Composition of Under Section 10 of Under Section Under Section 20 Forum the Consumer 15 of the of the Consumer Protection Act, 1986 Consumer Protection Act Protection Act President District Judge High Court Supreme Court (Qualified to be)

ambitiousbaba.com Online Test Series

Minimum 2 2 4 Other Members (One Woman)

Member Minimum 35 Minimum 35 Minimum 35 Qualification years of age years of age years of age Bachelor’s Bachelor’s Bachelor’s Degree Degree Degree Term For a term of 5 For a term of 5 For a term of 5 years or up to the years or up to years or up to the age of 65 years the age of 67 age of 70 years years

Jurisdiction of Forum District State National

Established State Govt State Govt Central Govt by

Jurisdiction of Under Section 11 of Section 12,13 Section 12,13 and 14 Forum the Consumer and 14 of of District forum Protection Act, 1986 District forum

Claimed Does not exceed Rs.20 Lakhs to Exceeds Rs. 1 Crore Amount Rs. 20 Lakhs. Rs.1 Crore Appeal against the Appeal against order of the the order of State Commission District Forum with in State

Form of Complaint District State National

ambitiousbaba.com Online Test Series

Established by State Govt State Govt Central Govt

Act Section 12 of the Consumer protection Act Admissibility within 21 days Application of Application of from the date of complainant or on complainant or on receipt its own motion its own motion the Once the complaint the state state commission admitted to District commission may may transfer any forum, cannot be transfer any proceeding at any transferred to any proceeding at any stage from one Dist other court or stage from one forum to another tribunal Dist forum to Dist. And State another Dist if in Commission to the interest of another Commission justice it requires if in the interest of justice it require

Appeal District State National Established State Govt State Govt Central Govt by Act Under Section 15 Under Section Under Section 24 of the Consumer 19 of the of the Consumer Protection Act. Consumer Protection Act. Protection Act. Transfer 30 30 Appeal Time Appeal Appeal to state Appeal to Appeal to (50% commission: National Supreme Court : amount or Payment of Commission : Payment : Rs. whichever amount : 25,000 Payment of 50,000 is less) amount: Rs. 35,0000

Other Important Point • Dismissal of Frivolous complaints: If the district forum, state commission, national commission finds that complaint instituted before it is frivolous, it shall dismiss the complaint. And order the complainant to pay Rs. 10,000.

ambitiousbaba.com Online Test Series

• Penalties: Where trader or a person against the whom the complaint is made fails or omits to comply with any order made by the commissions, he shall be punishable with imprisonment for a term 1 month to 3 years or with fine Rs. 10,000 or with both Chapter 24: Information Technology Act, 2000 Cyber Law in India is based on Information Technology Act 2000 which extends to whole of India. The Act has been drawn on the lines of Model Law on Electronic Commerce adopted in 1996 by UN Commission on International Trade Law (UNCITRAL). The Act has been amended wef Oct 27, 2009. The major provisions of the Act are: • Adjudicating officer: Appointed Under Section (1) of Section 46. • Certifying Authority: Means a person who has been granted a licence to issue a Digital Signature Certificate under section 24. • Controller: Means the Controller of Certifying Authorities appointed under the sub-section (1) of Section 17. • Cyber Appellate Tribunal: Means the Cyber Regulation Appellate Tribunal Established under the sub-Section (1) of Section 48. • Digital Signature: Means authentication of any electronic record by a subscriber by means of an electronic method or procedure in accordance with provisions of Section 3. • Digital Signature Certificate: Means a Digital Signature Certificate issued under the sub-section (4) of Section 35. • Licence: Means a licence granted to a certifying Authority under the Section 24. • Penalties: The Penalties for damage to computers, computer system, etc, has been fixed as damages by way of compensation not exceeding Rs 1 cr. to affected person. • Hacking - Hacking is an offence and one will have to pay a fine of up to Rs.2 lac or undergo imprisonment up to three years for hacking.

ambitiousbaba.com Online Test Series

Join Telegram Channel to Get Early Updates and PDFs

Click here Join our Whatsapp Group

Download Current Affairs Android APP

Download Online Test Series Android APP

Subscribe our YouTube Channel for Free Banking Classes

Click here to Get SBI CBO Online Test Series

ambitiousbaba.com Online Test Series

• Click here to Join Telegram Group

2020 Preparation Kit PDF

Most important PDF’s for Bank, SSC, Railway and Other Government Exam :

Download PDF Now

AATMA-NIRBHAR Series- Static GK/Awareness Practice Get PDF here Ebook PDF

The Banking Awareness 500 MCQs E-book| Bilingual Get PDF here (Hindi + English)

AATMA-NIRBHAR Series- Banking Awareness Practice Get PDF here Ebook PDF

Computer Awareness Capsule 2.O Get PDF here

AATMA-NIRBHAR Series Quantitative Aptitude Topic- Get PDF here Wise PDF 2020

Memory Based Puzzle E-book | 2016-19 Exams Covered Get PDF here

Caselet Data Interpretation 200 Questions Get PDF here

Puzzle & Seating Arrangement E-Book for BANK PO Get PDF here MAINS (Vol-1)

ARITHMETIC DATA INTERPRETATION 2.O E-book Get PDF here

Online Mock Test Available on App as well as Web: