RBI Concepts: Types of Bank Deposits and Advances for NRIs/NRIs/PIOs/OCBs #8

Oracle IAS, the best coaching institute for RBI grade B/NABARD/SEBI in Dehradun (Uttarakhand), brings to you views on important issues.

1) Ordinary Non-Resident Rupee Accounts (NRO Accounts):
These are Rupee denominated non-repatriable accounts and can be in the form of savings, current recurring or fixed deposits. These accounts can be opened jointly with residents in India. When an Indian National / PIO resident in India leaves for taking up employment, etc. outside the country, his bank account in India gets designated as NRO account. Continue reading “RBI Concepts: Types of Bank Deposits and Advances for NRIs/NRIs/PIOs/OCBs #8”

RBI CONCEPTS: Role of commercial banks #7

Oracle IAS, the best coaching institute for RBI grade B//NABARD/SEBI in Dehradun (Uttarakhand), brings to you views on important issues..

1) Credit Creation:
Commercial banks have to ensure that enough credit is available for people to borrow from the bank to carry out their daily business activities. Wherever a shortage of credit is observed, the commercial banks are expected to provide additional funds and make sure that the shortage gap is filled. Continue reading “RBI CONCEPTS: Role of commercial banks #7”

RBI CONCEPTS:CARD TRANSACTION #6

Oracle IAS, the best coaching institute for RBI grade B in Dehradun (Uttarakhand), brings to you views on important issues.

  1. What are various types of cards?

Ans: Cards can be classified on the basis of their issuance, usage and payment by the card holder. There are three types of cards (a) debit cards (b) credit cards and (c) prepaid cards.

  1. Who issues these cards?

Ans: Debit cards are issued by banks and are linked to a bank account. Credit cards are generally issued by banks and a couple of non-banks, but can also be issued by other approved entities. Prepaid cards are issued by banks / non-banks against the value paid in advance by the cardholder and stored in such cards which can be issued in the form of cards or wallets. Continue reading “RBI CONCEPTS:CARD TRANSACTION #6”

RBI CONCEPTS:NATIONAL ELECTRONIC FUNDS TRANSFER (NEFT) #5

Oracle IAS, the best coaching institute for RBI grade B in Dehradun (Uttarakhand), brings to you views on important issues.

Q.1. What is NEFT?

Ans: National Electronic Funds Transfer (NEFT) is a nation-wide payment system facilitating one-to-one funds transfer. Under this Scheme, individuals, firms and corporates can electronically transfer funds from any bank branch to any individual, firm or corporate having an account with any other bank branch in the country participating in the Scheme. Continue reading “RBI CONCEPTS:NATIONAL ELECTRONIC FUNDS TRANSFER (NEFT) #5”

RBI CONCEPTS: CHEQUE TRUNCATION #4

 Oracle IAS, the best coaching institute for RBI grade B in Dehradun (Uttarakhand), brings to you views on important issues.

  • What is Cheque Truncation?

Truncation is the process of stopping the flow of the physical cheque issued by a drawer at some point by the presenting bank en-route to the paying bank branch. In its place, an electronic image of the cheque is transmitted to the paying branch through the clearing house, along with relevant information like data on the MICR band, date of presentation, presenting bank, etc. Cheque truncation thus obviates the need to move the physical instruments across bank branches, other than in exceptional circumstances for clearing purposes. This effectively eliminates the associated cost of movement of the physical cheques, reduces the time required for their collection and brings elegance to the entire activity of cheque processing. Continue reading “RBI CONCEPTS: CHEQUE TRUNCATION #4”

RBI CONCEPTS:ASIAN CLEARING UNION(ACU) #3

Oracle IAS, the best coaching institute for RBI grade B in Dehradun (Uttarakhand), brings to you views on important issues.

  1. What is the Asian Clearing Union (ACU)?

Ans. The Asian Clearing Union (ACU) was established with its head-quarters at Tehran, Iran, on December 9, 1974 at the initiative of the United Nations Economic and Social Commission for Asia and Pacific (ESCAP), for promoting regional co-operation. The main objective of the clearing union is to facilitate payments among member countries for eligible transactions on a multilateral basis, thereby economizing on the use of foreign exchange reserves and transfer costs, as well as promoting trade among the participating countries. Continue reading “RBI CONCEPTS:ASIAN CLEARING UNION(ACU) #3”

RBI concept:Sovereign Gold Bond Scheme #2

Oracle IAS, the best coaching institute for RBI grade B in Dehradun (Uttarakhand), brings to you views on important issues.

  • What is Sovereign Gold Bond (SGB)? Who is the issuer?

SGBs are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. The Bond is issued by Reserve Bank on behalf of Government of India. Continue reading “RBI concept:Sovereign Gold Bond Scheme #2”

RBI concept: ATM/White Label ATM #1

Oracle IAS, the best coaching institute for  RBI grade B in Dehradun (Uttarakhand), brings to you daily economics/finance concept.

Q.1. What is an Automated Teller Machine (ATM)?

Ans 1. Automated Teller Machine is a computerized machine that provides the customers of banks the facility of accessing their account for dispensing cash and to carry out other financial & non-financial transactions without the need to actually visit their bank branch.

Q.2. What are White Label ATMs (WLAs)?

Ans 2. ATMs set up, owned and operated by non-banks are called White Label ATMs. Non-bank ATM operators are authorized under the Payment & Settlement Systems Act, 2007 by the Reserve Bank of India.

Example-Indicash

Continue reading “RBI concept: ATM/White Label ATM #1”

RBI Gr-B News – Indian banking: Latest on the NPA issue #1

Oracle IAS, the best coaching institute for RBI grade B in Dehradun (Uttarakhand), brings to you views on important issues.

• The banking industry is over the hump on non-performing assets (NPAs), which peaked in the quarter ending March 2018 at 11.18% of advances.

• Both gross and net NPAs have registered a decline for two consecutive quarters June and September 2018. Continue reading “RBI Gr-B News – Indian banking: Latest on the NPA issue #1”