CAIIB ABM case studies

When chiken prices rise 40%, the quantity of KFC fried chicken

supplied rises by 20%. Calculate the price

elasticity of supply.

a. 0.25

b. 0.50

c. 0.75

d. 0.85

Ans - a

Solution :

Price Elasticity of Supply = (% change in quantity supplied) / (%

change in price)

= 20/40 = 0.5

When the price of a commodity falls from Rs. 60 per unit to

Rs. 48 per unit, the quantity supplied falls by

20%. Calculate the price elasticity of supply.

a. 1

b. 1.5

c. 2

d. 2.5

Ans – a

495

Solution :

Price Elasticity of Supply = (% change in quantity supplied) / (%

change in price)

= 20/((60-48)*100/60)

= 20/(12*100/60)

= 20/20

= 1

21 bricks have a mean mass of 24.2 kg, and 29 similar bricks

have a mass of 23.6 kg. Determine the

mean mass of the 50 bricks.

a. 18.35 kg

b. 20.35 kg

c. 23.85 kg

d. 32.85 kg

Ans - c

Solution :

Mean value = ((21 x 24.2) + 29 x 23.6 )) / (21+29)

= 1192.6 / 50

= 23.85 kg

.............................................

Net income available to stockholders is ₹150 and total assets

are ₹2,100 then return on total assets

would be ......

a. 0.07%

b. 7.14%

c. 0.05 times

d. 7.15 times

Ans - b

Solution

Return on Assets Ratio=Net Income/Average Total Assets*100

=150/2100*100

=0.0714

=7.14

.............................................

Given,

Recoveries of loan and advance - Rs. 3000 Crores

Misc capital receipt - Rs. 600 Crores

Market loAns - Rs. 600 Crores

Short term borrowings - Rs. 1200 Crores

External assistance (Net) - Rs. 500 Crores

State provident fund - Rs. 600 Crores

Other receipts (Net) - Rs. 1200 Crores

Securities issued against small savings - Rs. 600 Crores

Recoveries of short term loans and advances from states and

loans to govt servants - Rs. 1000 Crores

Total Non Tax Revenue - Rs. 5000 Crores

Net Tax Revenue - Rs. 2000 Crores

Draw down cash balance - Rs. 4000 Crores

Calculate Debt Receipt ...

a. Rs 2500 Crores

b. Rs 3700 Crores

c. Rs 4700 Crores

d. Rs 5400 Crores

Ans - c

.............................................

Calculate Non Debt Receipt ...

a. Rs 2500 Crores

b. Rs 3700 Crores

c. Rs 4700 Crores

d. Rs 5400 Crores

Ans - a

.............................................

Calculate Capital Receipt ...

a. Rs 4700 Crores

b. Rs 5400 Crores

c. Rs 6200 Crores

d. Rs 7200 Crores

Ans - c

.............................................

Solution :

1. Debt Receipt = Market Loans + Short Term Borrowings +

External assistance(NET) + Securities issued

against Small savings + State provident fund + other

Receipts(Net)

= 600 + 1200 + 500 + 600 + 600 + 1200

= 3700 Crores

2. Non Debt Receipt = Recoveries of loan & advances (deduct

recoveries of short term loans & advance

from state and loans to govt sarvants) + MISC Capital receipts

= (3000-1000)+500

= 2500 Crores

3. Capital Receipt = Non Debt Receipt + Debt Receipt

= 3700 + 2500

= 6200 Crores

Given,

Currency with public - Rs. 120000 Crores

Demand deposit with banking system - Rs. 200000 Crores

Time deposits with banking system - Rs. 250000 Crores

Other deposit with RBI - Rs. 300000 Crores

Savings deposit of post office savings banks - Rs. 100000

Crores

All deposit with post office savings bank excluding NSCs - Rs.

50000 Crores

1. Calculate M1.

a. Rs. 570000 Crores

b. Rs. 620000 Crores

c. Rs. 670000 Crores

d. Rs. 720000 Crores

Ans - b

.............................................

2. Calculate M2.

a. Rs. 570000 Crores

b. Rs. 620000 Crores

c. Rs. 670000 Crores

d. Rs. 720000 Crores

Ans - d

.............................................

3. Calculate broad money M3.

a. Rs. 570000 Crores

b. Rs. 620000 Crores

c. Rs. 670000 Crores

d. Rs. 870000 Crores

Ans - d

.............................................

Solution :

1. M1 = currency with public + demand deposit with the

banking system + other deposits with RBI

M1 = 120000+200000+300000

M1 = 620000

485

2. M2 = M1+Savings deposit of post office savings banks

So,

M2 = 620000+100000

M2 = 720000 Crores

3. M3 = M1+Time deposit with banking system

So,

M3 = 620000+250000

M3 = 870000 Crores

Given

1. Consumptions - Rs. 50000

2. Gross investment - Rs. 40000

3. Govt spending - Rs. 10000

4. Export - Rs. 90000

5. Import - Rs. 60000

6. Indirect Taxes - Rs. 10000

7. Subsidies(on production and import) - RS. 5000

8. Compensation of employee - Rs. 500

9. Property Income - Rs. 500

7,8,9 - Net receivable from aboard

10.Total capital gains from overseas investment - Rs. 15000

11.Income earned by foreign national domestically - Rs. 5000

1. Calculate GDP

a. Rs. 125000

b. Rs. 130000

c. Rs. 135000

d. Rs. 140000

Ans - b

.............................................

2. Calculate GDP at cost factor

a. Rs. 125000

b. Rs. 130000

c. Rs. 135000

d. Rs. 140000

Ans - c

.............................................

3. Calculate GNP

a. Rs. 110000

b. Rs. 120000

c. Rs. 130000

d. Rs. 140000

Ans - d

.............................................

479

Solution :

1. GDP = Consumption + Gross investment + Government

spending + (Exports - Imports)

GDP = C+I+G+(X-M)

= 50000+40000+10000+(90000-60000)

= 130000

2. GDP at factor rate

= GDP-(Indirect taxes-subsidies)

= 130000-(10000-5000)

= 135000

3. GNP=GDP+NR(total capital gains from Overseas

investment-income earned by foreign national

domestically)

= 130000 + (15000-5000)

= 140000

.............................................

Savings deposit of post office savings banks - Rs. 60000 Crores

All deposit with post office savings bank excluding NSCs - Rs.

50000 Crores

Calculate M4.

a. Rs. 750000 Crores

b. Rs. 800000 Crores

c. Rs. 810000 Crores

d. Rs. 870000 Crores

Ans - b

Solution :

M4 = M3+All deposit with post office savings bank excluding

NSCs

M3 = M1+Time deposit with banking system

M1 = currency with public + demand deposit with the banking

system + other deposits with RBI

M1 = 90000+180000+260000

M1 = 530000

So,

M3 = M1+Time deposit with banking system

M3 = 530000+220000

M3 = 750000 Crores

So,

M4 = M3+All deposit with post office savings bank excluding

NSCs

M4 = 750000+50000

M4 = 800000 Crores

Calculate the present value of 6 year bond with 9 per cent

coupon rate with FV Rs. 1000/-. Current

interest rate is 12 per cent.

a. Rs.843.83

b. Rs.1025.57

c. Rs.876.66

d. Rs.768.68

Ans - c

Solution

FV = 1000

Coupon Rate (CR) = 0.9%

t = 6 year

R (YTM) = 0.12

Annual interest rate payable=1000*9%=90

Principal repayment at the end of 6 year = Rs. 1000

=90 (PVIFA, 12%,6 years)+1000(PVIF,12%, 6 Years)

PVIFA= ((1+r)^t -1)/ r+ PVIF=1/(1+R)^t

=90(1.12^6-1/0.12*(1.12)^6+1000(1/1.12^6)

=90*1.97382-1/0.12*1.1.97382+1000(1/1.97382)

=90*0.97382/0.12*1.97382+1000*0.0.50663

=90*0.97382/0.23685+506.63

=90*4.11154+506.63

=370.03+506.63

=876.66

Mr x is to receive Rs. 10000, as interest on bonds by end of

each year for 5 years @ 5% roi. Calculate the

present value of the amount he is to receive.

a. 43925

b. 43295

c. 49325

d. 49235

Ans - b

Explanation :

Here,

P = 10000

R = 5% p.a.

T = 5 Y

PV = P / R * [(1+R)^T - 1]/(1+R)^T

PV to be received, if the amount invested at end of each year:

So,

FV = (100000÷0.05) * {(1+0.05)^5 – 1} ÷ (1+0.05)^5

= 43295

A company has net worth of Rs. 15 lac, term liabilities are Rs.

10 lac. Fixed Assets worth Rs. 16 lac and

current assets are Rs. 25 lac. There is no intangible assets or

the non current assets. Calculate it's net

working capital.

a. 6 lac

b. 7 lac

c. 8 lac

d. 9 lac

Ans - d

Total Assets = Total liabilities

Total Assets = Fixed Assets + current assets

= 16 + 25

= 41

So total liabilites must be 41 lac

Now out of 41 lac, the long term liability is 25 lac (15 + 10)

Hence CL = 41 - 25 = 16 lac

Now we have CA = 25 lac and CL = 16 lac

NWC = 25 - 16

= 9 lac

.............................................

Calculate Standard Error from the given data : X = 10,

20,30,40,50

a. 6.1071

b. 6.0711

c. 7.1071

d. 7.0711

Ans - d

Explanation :

Total Inputs (N) = (10,20,30,40,50)

Total Inputs (N) =5

First find Mean:

Mean (xm) = (x1+x2+x3...xn)/N

Mean (xm) = 150/5

Mean (xm) = 30

Then find SD:

SD = √(1/(N-1)*((x1-xm)2+(x2-xm)2+..+(xn-xm)2))

= √(1/(5-1)((10-30)2+(20-30)2+(30-30)2+(40-30)2+(50-30)2))

= √(1/4((-20)2+(-10)2+(0)2+(10)2+(20)2))

= √(1/4((400)+(100)+(0)+(100)+(400)))

= √(250)

= 15.811

Then Find Standard Error:

Standard Error=SD / √(N)

= 15.8114/√(5)

= 15.8114/2.2361

= 7.0711

A sack contains 4 black balls 5 red balls. What is probability to

draw 1 black ball and 2 red balls in one

draw ?

a. 12/21

b. 9/20

c. 10/21

d. 11/20

Ans – c

Solution :

Out of 9, 3 (1 black & 2 red. are expected to be drawn)

Hence sample space

n(S) = 9c3

= 9!/(6!×3!)

= 362880/4320

= 84

Now out of 4 black ball 1 is expected to be drawn hence

nb. = 4c1

= 4

Same way out of 5 red balls 2 are expected be drawn hence

n(R) = 5c2

= 5!/(3!×2!)

= 120/12

= 10

Then P(B U R) = n(B)×n(R)/n(S)

i.e 4×10/84 = 10/21

........................................................

Quantity supplied of a product at Rs. 8 per unit is 200 Units. If

the price elasticity of supply is 1.5, what

will be the quantity supplied at Rs. 10 per unit?

a. 150

b. 175

c. 250

d. 275

Ans - d

Solution :

Price Elasticity of Supply = (% change in quantity supplied. / (%

change in price)

1.5 = ((x-200)*100/200)/((10-8)*100/8)

1.5 = ((x-200)/2)/(200/8)

1.5 = ((x-200)/2)/25

1.5 = (x-200)/50

75 = x-200

x = 75+200

x = 275

X opened a recurring account with a bank to deposit Rs. 16000

by the end of each year @ 10% roi. How

much he would get at the end of 3rd year?

a. 52960

b. 52690

c. 52069

d. 52096

Ans - a

Explanation :

Here,

P = 16000

R = 10% p.a.

T = 3 yrs

FV = P / R * [(1+R)^T - 1]

FV = 16000 * (1.13 – 1) ÷ 0.1

= 52960

.............................................

Find Correlation coefficient for X and Y values given below :

X= (1,2,3,4,5)

Y= {11,22,34,43,56}

a. 0.8899

b. 0.9989

c. 1.0899

d. 1.0989

Ans - b

Explanation :

Step 1: Find Mean for X and Y

X=15/5=3

Y=166/5=33.2

Step 2: Calculate Standard Deviation for Y inputs:

σx=

359

√(1/(N-1)*((x1-xm)2+(x2-xm)2+..+(xn-xm)2))

=√(1/(5-1)((11-33.2)2+(22-33.2)2+(34-33.2)2+(43-33.2)2+(56-

33.2)2))

=√(1/4((-22.2)2+(-11.2)2+(0.8)2+(9.8)2+(22.8)2))

=√(1/4((492.84)+(125.44)+(0.64)+(96.04)+(519.84)))

=√(308.7)

=17.5699

Step 3: Standard Deviation for X Inputs:

σx=

√(1/(N-1)*((x1-xm)2+(x2-xm)2+..+(xn-xm)2))

=√(1/(5-1)((1-3)2+(2-3)2+(3-3)2+(4-3)2+(5-3)2))

=√(1/4((-2)2+(-1)2+(0)2+(1)2+(2)2))

=√(1/4((4)+(1)+(0)+(1)+(4)))

=√(2.5)

=1.5811

Σ((X - μx) (Y - μy))

=(1-3)(11-33.2)+(2-3)(22-33.2)+(3-3)(34-33.2)+(4-3)(43-

33.2)+(5-3)(56-33.2)

=(-2*-22.2) + (-1*-11.2) + (0* 0.8) + (1 *9.8) + (2* 22.8)

=44.4 + 11.2 + 0 + 9.8 + 45.6

=111

Correlation Coefficient = 111/((5-1)*1.5811*17.5699)

Correlation Coefficient (r) = 0.9989

Hence the correlation coefficient between the two given data

set is 0.9989

Albert purchased 8%, 3 years bond of Rs. 10 lac, with annual

interest payment and face value payable on

maturity. The YTM is assumed@ 6%. Calculate the duration

and modified duration.

a. 2.36

b. 2.79

c. 2.63

333

d. 2.97

Ans - c

Explanation :

Bond’s Duration = ΣPV×T ÷ ΣP

ΣP = 1053421

Now, a = 0.943396 and a^t = 0.839619

So, ΣPV×T = 80000 × 16.666 × (0.160381÷0.056604 –

2.518857) + 2518857

= 419370.767 + 25188579

= 2938227.77

So, Duration of the Bond

= 2938227.77 / 1053421

= 2.79 years

& Modified Duration

= Mckauley Duration ÷ (1 + R)

= 2.79 ÷ 1.06

= 2.63

Mr. Raj is to invest Rs. 100000 by end of each year for 5 years

@ 5% roi. How much amount he will

receive?

a. 556253

b. 553562

c. 552563

d. 555263

Ans - c

Explanation :

Here,

P = 1000000

R = 5% p.a.

T = 5 Y

FV = P / R * [(1+R)^T - 1]

FV, if invested at end of each year, is:

So,

FV = (100000÷0.05) * {{1+0.05}^5 – 1}

= 552563

An urn contains 10 black balls and 5 white balls. 2 balls are

drawn from the urn one after other without

replacement. What is the probability that both drawn are

black ?

a. 2/7

b. 3/7

c. 4/7

d. 6/7

Ans - b

Solution :

Let E and F denote respective events that first and second ball

drawn are black.

We have to find here P(E n F ) and P(E/F)

Now P(E) = P(Black in first drawn) = 10/15

Also given that the first ball is drawn i.e events E has occurred.

Now there are 9 black balls and 5 white

balls left in the urn. Therefore the probability that the second

ball drawn is black, given that the ball first

drawn is black nothing but conditional probability of F given

that E has occurred already.

Hence P(E/F) = 9/14

Now by the multiplication rule of probability

P(E n F) = P(E) × P(E/F)

= 10/15 × 9/14

= 3/7

........................................................

A person invested Rs. 100000 in a bank FDR @ 6% p.a. for 1

year. If interest is compounded on halfyearly

basis, the amount payable shall be ......

a. 109060

b. 100960

c. 103090

d. 106090

Ans – d

265

Explanation :

Here,

P = 100000

R = 6% half-yearly = 3%@ p.a. = 0.03 p.a.

T = 1 yr = 2 half yrs

FV = P * (1 + R)^T

So,

FV = 100000 * (1+0.03)^2

= 106090

Ranjit borrowed an amount of Rs. 50000 for 8 years @ 18%

roi. What shall be monthly payment?

a. 986

b. 968

c. 896

d. 869

Ans - a

Explanation :

Here,

P = 50000

R = 18% = 18 % ÷ 12 = 0.015% monthly

T = 8 yrs = 96 months

EMI = P * R * [(1+R)^T/(1+R)^T-1)]

EMI = 50000 * 0.015 * 1.01596 ÷ (1.01596 – 1

= 986

Ajit wants to receive Rs. 40000 p.a. for 20 years by investing

@ 5%. How much he will have to invest

now?

a. 498489

263

b. 498849

c. 498948

d. 498984

Ans - a

Explanation :

Here,

P = 40000

R = 5% p.a.

T = 20 yrs

PV = P / R * [(1+R)^T - 1]/(1+R)^T

PV = (40000 ÷ 0.05) * {(1.0520 – 1) ÷ 1.0520}

= 498489

.................

Priyanka made an investment of Rs. 18000 and he expects a

return of Rs. 3000 p.a. For 12 years. What is

the present value and net present value of the cash flow @

10% discount rate?

a. 2114

b. 2414

c. 2441

d. 2141

255

Ans - c

Explanation :

PV = 20441

NPV = PV – 18000

= Rs. 2441

The cash flow expected from a project is Rs. 700, Rs. 1000 and

Rs. 1200 in the 1st, 2nd, & 3rd year. The

discounting factor @ 10% roi is 1.10, 1.21 and 1.331. What is

the total present value of these cash

flows?

a. 3264

b. 3246

c. 2346

d. 2364

Ans - d

Explanation :

NPV = Σ {C÷ (1+r)T} – 1

Total Present Value

= Σ {C÷ (1+r)T}

= (700 ÷ 1.1) + (1000 ÷ 1.21) + (1200 ÷ 1.331)

= Rs. 2364

.............................................

A 10%, 6-years bond, with face value of Rs. 1000 has been

purchased by Mr. x for Rs. 900. What is his

yield till maturity?

a. 12.47

b. 14.27

c. 11.74

d. 11.27

Ans - a

Explanation :

Here,

FV = 1000

CR = 10%

R (YTM) =?

T = 6 years

Coupon = FV × CR = 100

Bond’s price = 900

Since FV > Bond’s Value, Coupon rate < YTM (based on above

three observations)

So, we have to use trial and error method. We have to start

with a value > 10 and find the price until we

get a value < 900.

Bond Price = (1/(1+R)^t)((coupon*((1+R)^t-1)/R)+Face Value)

So,

If YTM = 11%, price =957.69 (> 900, so keep guessing)

If YTM = 12%, price = 917.78 (> 900, so keep guessing)

If YTM = 13%, price = 880.06 (< 900, so stop)

So, YTM must lie between 12 and 13.

So, using interpolation technique,

YTM

= 12 + (917.78 – 900) ÷ (917.78 – 880.06)

= 12 + 17.78 ÷ 37.72

= 12.47%

.............................................

BCSBI Recollected questions on 04.08.2018

BCSBI Recollected questions on 04.08.2018

1.Banker customer relationship 2 question
2.Punishment of cheque bouncing
3.Can cheque signed by pencil
4.Banking ombudsman max award
5.Gurnishee order
6.Power of appropriation
7.Power of CFO of bcsbi
8.Codes for msme customer 5 question
9.Ni act 2questions
10Corpa dist level how many female member

11.Transfer of account in another branch

12.Notice period for shifting branch
Notice period for changing interest

Recollected questions of msme on 04 August 2018

Recollected questions of msme

1.preshipment & postshipment advance
2.,Basel3
3.WTO in which year
4.KARVE committee
5.Investment amount in plant&machinery for manufacturing sector
6.features of cluster related qstn
7.CGTMSE coverage
8.private company no of director &shareholder
9.3 numericals based on turnover,dscr and networth
10.,llp,working capital gap
11.DER related 2 questn
12.1easy case study on CLCSS
13.max amt for mudra loan
14. TUF related to,FIWE HQ, OTS
15. For limit above 5l & upto 25l time frame for take decision & disbursal time
16.market discrimination
17.mahila vikas nidhi scheme
18.successful development of cluster in which country
19.TVE of which country20.stages of credit process
20.assistance amount for ISO9000certification
21.msme rating agency
22SSIDC established under which act,hybrid capital,example of non-fund based facility
23.LC case study on BG
24.Most imp 'c' for management appraisal,diffusion effect,no of stages of cluster development,for sick unit erosion in NW percentage, internal & external causes of sickness,what is handholding stage,penal measures applicable to wilful defaulter,
25.SARFAESI Act in which yr,mudra bank,,,items included for calculating cost of investment in plant & machinery

Today KYC AML recollected on Aug 04 and 18th 2018

1.FATF 5 TO 7 QUESTION
2.Funnel account
3.Multi tier account
4.Rule based reports
5.Layering based case study
6 placement based case study
7.CASE STUDY AS IT IS FROM MACMILLAN
8.AMENDMENT TO PMLR 1ST JUNE 17 at least 10 questions
9.India helped which country in FIU
10.Basel based risk related
11.Types of risks
12.customer due diligence
13 customer identification related
14.Correspondent bank relation and due diligence
15 .FATF public statement
16.CTR monthly based
17.CCR monthly based
18.STR identification
19.FATF related rules
20Customer definitions
21.Identify beneficiary for Trust and proprietary concern company

22.direct 0.5 question from Vienna convention/ IMF/FATF regional bodies/Wolfsburg GRP/AML in USA/UK/Australia acts/ bilateral agreements


Finally most difficult paper with latest updates


On Aug 18th 2018

Read FATF in detail
PMLA
Other nation fatf
Conceptual question to test depth of your knowledge
Phases of money laundering
Risk categorisation
Case study
Suspicious transaction based questions
Is India a member of fatf
FCRA full form
Different documents required for opening acs of company, trust

KYC AML Exam PMLA 2005 Amendments on June 1st 2017

Prevention of Money Laundering (Maintenance of Records) Rules, 2005
Amendments vide Notification dated 1st June 2017
Salient Highlights
The Prevention of Money Laundering (Maintenance of Records) Rules 2005 have been
amended vide Gazette Notification dated 1st June 2017. Consequential, modifications in
RBI KYC Directions are yet to be issued. This memo captures the highlights of the
amendments made. Only those aspects that have been changed are enumerated below.
Other provisions continue to be as already stated in these Rules.
Changes Made:
(1) ‘Officially Valid Document’ (OVD) definition amended – the Permanent Account
Number (PAN) Card; and the letter issued by the Unique Identification Authority of India
have been removed from this definition.
(2) Now OVD definition includes - the passport, the driving licence, the Voter's Identity
Card issued by Election Commission of India, job card issued by NREGA duly signed by
an officer of the State Government, the letter issued by the National Population Register
containing details of name, address or any other document as notified by the Central
Government in consultation with the Regulator;
(3) KYC Document Requirement for an Individual changed –
(a) An individual eligible for Aadhaar number is required to submit (i) the Aadhaar number
(AN); (ii) the Permanent Account Number (PAN) or Form No. 60.
(b) An individual (eligible for AN), who does not have AN, is required to submit (i) proof
of application of enrolment for Aadhaar (in lieu of AN) and (ii) PAN (and not Form 60).
(c) An individual (eligible for AN), who does not have both AN and PAN, is required to
submit (i) proof of application of enrolment for Aadhaar (in lieu of AN), (ii) one certified
copy of an OVD, and (ii) Form 60.
(d) An individual not eligible for AN is required to submit PAN.
(e) An individual, who is not eligible for AN and does not have PAN, is required to submit
(i) one certified copy of an OVD, (ii) Form 60, and (iii) one recent photograph .
(f) An individual is also required to submit such other documents (including in respect of
the nature of business and financial status of the client) as may be required by the reporting
entity (bank, etc.) (also in earlier rules).
(h) In case of ‘small accounts’ on suspicion of money laundering/ terrorism financing/ other
high risk scenarios to establish identity of the individual customer through (i) an OVD, and
(ii) AN, and where AN has not been obtained proof of application for AN.
(i) In case of ‘small accounts’ on completion of initial 12 month period or additional 12
month period (as the case may be) to obtain an OVD. (as per earlier rules)
(4) KYC Requirement for juridicial entities – These have been modified in repsect of KYC
documents pertaining to individuals connected with these entities. Instead of an OVD (as
per earlier rules) the requirements for the concerned persons are as indicated below.

No.
Type of
Entity
To obtain in respect of KYC Requirement


1 Company managers, officers or
employees holding an
attorney to transact on
the company's behalf
(a) (i) AN, and (ii) PAN/ Form 60.
(b) If does not have AN, (i) proof of
application of enrolment for Aadhaar (in
lieu of AN) and (ii) PAN (and not Form
60)
(c) If does not have both AN and PAN, (i)
proof of application of enrolment for
Aadhaar (in lieu of AN), (ii) one certified
copy of an OVD, and (ii) Form 60.
(d) If not eligible for AN and does not
have PAN, is required to submit (i) one
certified copy of an OVD, and (ii) Form
60.


2 Partnership
Firm
person holding an
attorney to transact on
3 Trust its behalf
4 Unincorpora
ted
association
or Body of
individuals
(5) On receiving  AN to carry out authentication using either e-KYC or Yes/No
authentication facility provided by Unique Identification Authority of India (UIDAI).
(6) NRIs and residents in the States of Jammu and Kashmir, Assam or Maghalaya who do
not submit PAN to submit (i) one certified copy of an OVD, and (ii) photograph and (iii)
such other document including in respect of the nature of business and financial status as
may be required by the reporting entity.
(7) If a person eligible for AN and PAN does not submit these at the time of commencement
of an account based relationship, should submit the same within a period of six months
from the date of the commencement of the account based relationship. If AN and PAN are
not submitted within 6 months, the said account shall cease to be operational till submitted.
(8) For existing clients, eligible for AN and PAN should submit these by 31st December,
2017. If AN and PAN are not submitted by 31st December, 2017, the said account shall
cease to be operational till submitted.
(9) In case the identity information relating to AN and PAN does not have current address
of the client, the client shall submit an OVD to the reporting entity.

Current Affairs on August 4th 2018

Today's Headlines from www:

*Economic Times*

📝 Uday Kotak trims stake in Kotak Mahindra Bank to 19.70 per cent

📝 Twenty 14 Holdings to invest Rs 750 crore in hotels in India

📝 Rupay card, BHIM users to soon get cashbacks for digital payments under GST

📝 Berger Paints lines up Rs 280 crore capex by 2021

📝 TRAI favours net zero imports of telecom equipment by 2022; Rs 1,000 crore fund to push manufacturing

📝 Tata Motors hopeful of JLR returning to profitability soon

📝 Manpasand to invest Rs 1,500cr to set up 10 new plants by 2020

📝 Tata, Dabur among suitors for Kraft Heinz's Complan brand

*Business Standard*

📝 SC allows RCom to sell telecom assets worth Rs 181 billion to Reliance Jio

📝 Worth $1.02 trillion, one Apple equals India's top 50 firms put together

📝 Adani Group, Indian Oil win big in bidding for city gas distribution

📝 Services sector grows fastest since October 2016 to 54.2 in July: PMI

📝 Govt achieves target of 50-mn free LPG connections 8-months before schedule

📝 BSE Q1 net profit up 4% to Rs 515 mn; bourse to focus on next-gen products

📝 RBI rate hikes likely to cause bump in small savings interest rates

*Financial Express*

📝 Home sales in top seven cities up 25% in H1 of 2018 on consumer confidence: Report

📝 Bank of Maharashtra net loss up 2.7 times on provisioning

📝 Committed to meeting Ebit margin of 4-7% between FY19 and FY21: Tata Motors

📝 Monsoon to be normal in August-September, says IMD

📝 US job growth slows in July, unemployment rate dips

📝 Revenue collections may fall due to GST rate cut, says Sushil Modi

*Mint*

📝 Over 2 lakh shell companies to be struck off from records in FY19

📝 China unveils retaliatory tariffs on $60 billion of US goods in latest salvo

📝 HDFC Bank raises ₹15,151 crore from domestic, overseas market

📝 SAIL Q1 net profit at ₹540 crore

📝 Nestle India profit jumps 50% in June quarter on lower input cost

📝 Constellation to buy Medall for $212 million

📝 Titan Q1 profit surges 30% to Rs 349.17 crore.

Startup India Standup India

Startup India Standup India
Introduction
India is a country of many great legends who were famous all over the world because of their works, sharp mind and
high skill. However, our country is still on the developing track because of the lack of some solid support and ways to
work in right direction. Youths in India are very talented, highly skilled and full of innovative ideas. This scheme is a
big help to them to go in right direction using their new and innovative ideas.
What is Startup India Standup India Campaign
A new campaign named as Startup India, Standup India was announced by the Prime Minister Narendra Modi during
his speech on Independence Day 2015. This is an effective scheme launched on 16th of January 2016 by the Modi
government to help youths of the country. This is an initiative by the Indian PM to give opportunities to the youths
to become industrialists and entrepreneurs which need the establishment of a startup network. Startups means
youths of the country will be supported through finance from banks to strengthen those startups better so that they
can create more employment in India.
This programme is a big start to enable startups through financial support so that they can use their innovative ideas
in right direction. PM has also requested to all the banks to support at least one dalit and one woman entrepreneur.
This scheme will motivate and promote new comers towards business and grow their career and economy of the
country.

Action Plan of Startup India Standup India Scheme
A complete action plan of this scheme was launched on 16th January 2016. This scheme will boost entrepreneurship
in the country at grassroots level ensuring youth benefits from the lowest strata of society. Youths have fresh mind,
new ways, and new thinking so they are better to support as startups. Various IITs, NITs, central universities and IIMs
of India were connected through the live connectivity during the successful launch of campaign. The main aim of this
scheme is to promote bank financing as well as offer incentives for start-up ventures to boost the entrepreneurship
and new job creation techniques among them.
Conclusion
This initiative is the necessity to lead India in right direction. The most important point about this campaign is that it
involves youths of the country as start-ups as they have fresh mind, innovative ideas, required strength, energy, skill,
and new thinking to lead business. Youths are the energetic and highly skilled section of the society so they are
better target for this campaign.

Digital India

Digital India project was launched by the Prime Minister Sh. Narendra Modi on 1st of July in 2015. It is an effective
scheme to transform India for better growth and development of the people and country. Digital India week (from
1st July to 7th July) was inaugurated by the PM on Wednesday in the presence of senior ministerial colleagues and
leading companies CEOs. It aims to give India a digital push for good governance and more jobs. The PM of India has
tried his best towards digitizing campaign for India in order to bridge the gap between government services and
people. Digitization was the need to be implemented in India for bright future and grow more than any other
developed country. Following are the benefits of digital India campaign:
 It makes possible the implementation of digital locker system which in turn reduces paper work by
minimizing the usage of physical documents as well as enabling e-sharing through registered repositories.
 It is an effective online platform which may engage people in governance through various approaches like
“Discuss, Do and Disseminate”.
 It ensures the achievement of various online goals set by the government.
 It makes possible for people to submit their documents and certificates online anywhere which reduces
physical work.
 Through e-Sign framework citizens may digitally sign their documents online.
 It may ease the important health care services through e-Hospital system such as online registration, taking
doctor appointments, fee payment, online diagnostic tests, blood check-up, etc.
 It provides benefits to the beneficiaries through National Scholarship Portal by allowing submission of
application, verification process, sanction and then disbursal.
 It is a big platform which facilitates an efficient delivery of government or private services all over the
country to its citizens.
 Bharat Net programe (a high-speed digital highway) will connect almost 250,000 gram panchayats of
country.
 There is a plan of outsourcing policy also to help in the digital India initiative.
 For better management of online services on mobile such as voice, data, multimedia, etc, BSNL’s Next
Generation Network will replace 30-year old telephone exchange.
 National Centre for Flexible Electronics will help in the promotion of flexible electronics.
 Large scale deployment of Wi-Fi hotspots has been planned by the BSNL all across the country.
 There is a Broadband Highways in order to handle all the connectivity related issues.
 Open access of broadband highways in all the cities, towns and villages will make possible the availability of
world-class services on the click of mouse.