Banking Awareness - 10 Important concepts

In a series of providing useful material, now I am starting preparation series for banking awareness section. I will try explain every banking concept in simple language.


1. Money Laundering: means acquiring, owning, possessing or transferring any proceeds of money of crime. Black Money in short!


2. Hybrid Debt-Capital instruments: Capital Market instruments that combine certain characteristics of equity and some of debt; any instrument which combines the qualities of 2 or more traditional instruments will be referred to as a ‘hybrid’.

3. Pillars of Basel III: (i) Minimum Capital Standards
                                     (ii) Supervisory Review
                                     (iii) Market Discipline (Imp to know from interview point of view

                                      too.)

4. Financial Literacy: or financial education stands for being knowledgeable about and to be able to effectively make use of financial resources, such as banking/investing etc.

5. Narrow Banking: is a particular system of banking, in which a bank places its funds in risk free assets (ex.: govt. securities), with maturity period matching its liability’s (when the bank has to pay back to the customer) maturity timing – this helps to maintain proper liquidity at the time of demand payment and their funds have no chance of becoming an NPA.

So, narrow banking is like narrow mindedness and to play it safe!

6. Venture Capital: capital as you know is source of fund, so, venture capital is the capital or source of fund which is used for financing new business ideas, which involves new technologies, high risk and potential high returns!

7. Index Linked Bonds: is the kind of bonds, the redemption value of which increases or decreases according to the movements in the rate of inflation. Wholesale Price Index is used as the inflation measure.

8. Z-Group shares: Shares of those companies which do not adhere (follow) the SEBI’s listing agreements.

9. Casino Banking: No Banks are not running casinos!
This term is used to refer to the practice of Banks, doing risky speculative financial activities like trading in the share market to earn profits and to show more profits in their balance sheet. This profit will be over and above the normal business profits that they earn from banking activities!

10. AIR: Annual Information Return. This return is to be filed by banks with the income tax department; this return helps the Tax authorities to look into transactions of tax payers.

I will share ten banking concepts every day for next few days. Stay updated!

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13 comments:

  1. Ya thank u sir very good informatin posted very useful to the banking aspirents and finance students also.

    ReplyDelete
  2. It's really easy to understand the banking concepts posted by you and can you please post a general awareness material regarding sbi po and also the syllabus for general awareness

    ReplyDelete
  3. Sir, From IBPS PO III, I am following you, I got 78 in IBPS PO III from general category and in the interview I did extremely well but could not submit my NOC from LIC as I was working for LIC, I promised the interview panel that before joining to the bank that i could submit my relieving letter from LIC as of that time I could not get the NOC as the officials are busy with other administrative jobs as LIC was closing the plans in that span of time, they allowed me for the interview.

    with all positive hopes I put my resignation in LIC on March 29,2014 and IBPS declared their results on 1st April stating that I am disqualified as I couldnt submit all the requisite documents at the time of interview. I put the mail to IBPS to consider me atleast for the second allotment as I was married just couple of months back and from general category is very difficult to get one more PSU/GOVT job in this competition world, but they rejected me to consider on humanity grounds also.

    Now I am jobless and sincerely preparing for IBPS PO IV and I have the exam on 1st NOV 2014, saturday, Monday shift, Mostly by that time I may become FATHER also, you may ask me why I am mentioning all these things here, I was never jobless from the time I completed my B.Sc Electronics (2005 May), i was there in IT from 2005 to 2010, from Nov,2010 to till March,2014 I was there in LIC and for the first time at very crucial part in my life, i became job less.

    By this I just wanna put an alarm to all my friends that How a silly thing can change the entire life, plz dont show any negligence to get ready for the interview, Make sure that you have all the required documents and certificates.

    I dont wanna see any of our friends in my shoes..

    I am preparing with all your guidelines and hope I shall do well in the exam, i purchased your DI, QUANT. And my strength also quant and reasoning, last time I got 41 in those two, this time i wanna make it 50, and the remaining three i wanna make 45 so that my score can become 90+, last time i attempted 104, this time planning to attempt 120.

    Subject Attempted Marks Time
    Reasoning 19 19 45Min
    English 26 12 17Min
    Quant 20 22 45Min
    G.A 23 12 09Min
    Computers 16 13 04Min

    This year also wanna follow the same schedule, please suggest me some final tips to boost my score.

    My weak subject is English and avg in GA, good in Computers and reasoning and strong at Q.A


    Please guide me sirji..


    Looking for the positive tips from all of you



    Thanking you


    ReplyDelete
    Replies
    1. May god bless you.. My best wishes with you.. God will help you..
      #sincere_wish

      Delete
    2. Atb buddy, just remember u hv cleard PO 3 so why not PO 4

      Delete
  4. Correction saturday, Morning Shift

    ReplyDelete
  5. Thanks bhai. Really helpful it was

    ReplyDelete
  6. How to get the hard copy of ur banking awareness book..?

    ReplyDelete
  7. HI this is the person who above mentioned, on oct 27th,

    I got the score of 85 but couldnot clear the general awaress only got 8 where as the cutoff is 10


    Subject Attempted Score Cutoff

    Quant 18 20 07
    Reasoning 23 24 10
    English 29 17 08
    Computers 15 16 11
    G.A 26 08 10


    I dont have the words to express myself..!!

    ReplyDelete

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