Gist of Important FEDAI Rules

Gist of Important FEDAI Rules
Rule 1: Hours of Business
1.1 The exchange trading hours for Inter-bank forex market in India would be from
9.00 a.m. to 5.00 p.m. No customer transaction should be undertaken by the
Authorised Dealers after 4.30 p.m. on any working day. 1.2 Cut-off time limit of 05.00 p.m. is not applicable for cross- currency transactions.
In terms of paragraph 7.1 of Internal Control Guidelines over Foreign Exchange
Business of Reserve Bank of India (February 2011), Authorised Dealers are
permitted to undertake cross-currency transactions during extended hours, provided
the Managements lay down the extended dealing hours. 1.3 For the purpose of Foreign Exchange business, Saturday will not be treated as
a working day. 1.4 “Known holiday” is one which is known at least 4 working days before the date. A holiday that is not a “known holiday” is defined as a “suddenly declared holiday”. Rule 2: Export Transactions
2.1. Post-shipment Credit in Rupees
(c) Application of exchange rate: Foreign Currency bills will be
purchased/discounted/ negotiated at the Authorised Dealer’s current bill buying rate
or contracted rate. Interest for the normal transit period and/or usance period shall
be recovered upfront simultaneously. (d) Crystallization and Recovery:
(ii) Authorized Dealers should formulate own policy for crystallization of foreign
currency liability into rupee liability, in case of non-payment of bills on the due
date. (iii) The policy in this regard should be transparently available to the customers. (iv) For crystallization into Rupee liability, the Authorised Dealer shall apply its TT
selling rate of exchange. The amount recoverable, thereafter, shall be the
crystallized Rupee amount along with interest and charges, if any.

(v) Interest shall be recovered on the date of crystallization for the overdue period
at the appropriate rate; and thereafter till the date of recovery of the
crystallized amount. (vi) Export bills payable in countries with externalization issues shall also be
crystallized as per the policy of the authorised dealer, notwithstanding receipt
of advice of payment in local currency. (d) Realization of Bills after crystallization: After receipt of advice of realization,
the authorised dealer will apply TT buying rate or contracted rate (if any) to convert
foreign currency proceeds. (e) Dishonor of bills: In case of dishonor of a bill before crystallization, the bank
shall recover:
(ii) Rupee equivalent amount of the bill and foreign currency charges at TT selling rate. (iii) Appropriate interest and rupee denominated charges. 2.2. Application of Interest
(c) Rate of interest applicable to all export transactions shall be as per the
guidelines of Reserve Bank of India from time to time. (d) Overdue interest shall be recovered from the customer, if payment is not
received within normal transit period in case of demand bills and on/or before
notional due date/actual due date in case of usance bills, as per RBI directive. (e) Early Realization: In case of early realization, interest for the unexpired period
shall be refunded to the customer. The bank shall also pay or recover notional swap
cost as in the case of early delivery under a forward contract. 2.3. Normal Transit Period:
Concepts of normal transit period and notional due date are linked to concessional
interest rate on export bills. Normal transit period comprises the average period
normally reckoned from the date of negotiation/purchase/discount till the receipt of
bill proceeds.
It is not to be confused with the time taken for the arrival of the goods at the destination. Normal transit period for different categories of export business are laid down as below:
(c) Fixed Due Date: In the case of export usance bills, where due dates are fixed, or are reckoned from date of shipment or date of bill of exchange etc, the actual due
date is known. Therefore, in such cases, normal transit period is not applicable. (d) Bills in Foreign Currencies – 25 days
(e) Exports to Iraq under United Nations Guidelines – Max. 120 days
(g) Bills drawn in Rupees under Letters of Credit (L/C)
(i) Reimbursement provided at centre of negotiation - 3 days
(ii) Reimbursement provided in India at centre different from centre of
negotiation - 7 days
(iii) Reimbursement provided by banks outside India - 20 days
(iv) Exports to Russia under L/C where reimbursement is provided by RBI - 20 days. (h) Bills in Rupees not under Letter of Credit - 20 days
(i) TT reimbursement under Letters of Credit (L/C)
(i) Where L/C provides for reimbursement by electronic means - 5 days
(ii) Where L/C provides reimbursement claim after certain number of days
from the date of negotiation - 5 days + this additional period. 2.4. Substitution/Change in Tenor:
(o) In case of change in the usance of a bill, interest on post-shipment credit shall
be charged to the customer, as per RBI guidelines. In addition, the bank shall
charge or pay notional swap difference. Interest on outlay of funds for such
swaps shall also be recovered from the customer at rate not below base rate
of the bank concerned. (p) It is optional for banks to accept delivery of bills under a contract made for
purchase of a clean TT. In such cases, the bank shall recover/pay notional
swap difference for the relative cover. Interest at the rate not below base rate
of the bank would be charged on the outlay of funds. 2.5. Export Bills sent for collection:
(a) Application of exchange rates: The conversion of foreign currency proceeds of
export bills sent for collection or of goods sent on consignment basis shall be
done at prevailing TT buying rate or the forward contract rate, as the case
may be. The conversion to Rupee equivalent shall be made only after the
foreign currency amount is credited to the nostro account of the bank. (b) On receipt of credit advice/statement of nostro account and compliances of
guidelines, requirements of the Bank and FEMA, the Bank shall transfer funds
for the credit of exporter’s account within two working days. (c) If the above stipulated time limit is not observed, the Bank shall pay
compensation for the delayed period at the minimum interest rate charged on
export credit. Compensation for adverse movement of exchange rate, if any, shall also be paid as per the compensation policy of the bank.

Rule 3: Import Transactions
3.1 Application of exchange rate:
(a) Retirement of import bills - Exchange rate as per forward sale contract, if
forward contract is in place. Prevailing Bills selling rate, in case there is no
forward contract. (b) Crystallization of Import - same as above bill (vide para 3.3 below)
(c) For determination of stamp - As per exchange rate provided by the duty on
import bills authority concerned. 3.2. Application of Interest:
(a) Bills negotiated under import letters of credit shall carry commercial rate of
interest as applicable to banks’ domestic advances from time to time. (b) Interest remittable on interest bearing bills shall be subject to the directive of
Reserve Bank of India in this regard. 3.3. Crystallization of Import Bill under Letters of Credit. Unpaid foreign currency import bills drawn under letters of credit shall be
crystallized as per the stated policy of the bank in this respect. Rule 4 Clean Instruments:
4.1. Outward Remittance: Outward remittance shall be effected at TT selling rate of
the bank ruling on that date or at the forward contract rate. 4.2. Encashment of foreign currency notes and instruments, Foreign currency
travelers’ cheques, currency notes, foreign currency in prepaid card, debit/credit
card will be encashed at Authorised Dealer’s option at the appropriate buying rate
ruling on the date of encashment. 4. 3. Payment of foreign inward remittance, Foreign currency remittance up to an
equivalent of USD 10,000/- shall be immediately converted into Indian Rupees. Remittance in excess of equivalent of USD 10,000 shall be executed in foreign
currency. The beneficiary has the option of presenting the related instrument for
payment to the executing bank within the period prescribed under FEMA. 4.4. The applicable exchange rate for conversion of the foreign currency inward
remittance shall be TT buying rate or the contracted rate as the case may be. 4.5. Compensation for delayed payment: Authorised Dealers shall pay or send
intimation, as the case may be, to the beneficiary in two working days from the date
of receipt of credit advice / nostro statement. In case of delay, the bank shall pay
the beneficiary interest @ 2 % over its savings bank interest rate. The bank shall
also pay compensation for adverse movement of exchange rate, if any, as per its
compensation policy

Rule 5 Foreign Exchange Contracts:
5.1. Contract amounts: Exchange contracts shall be for definite amounts and
periods. When a bill contract mentions more than one rate for bills of different
deliveries, the contract must state the amount and delivery against each such rate. 5.2. Option period of delivery: Unless the date of delivery is fixed and indicated in
the contract, the option period may be specified at the discretion of the customer
subject to the condition that such option period of delivery shall not extend beyond
one month. If the fixed date of delivery or the last date of delivery option is a known
holiday, the last date for delivery shall be the preceding working day. In case of
suddenly declared holidays, the contract shall be deliverable on the next working
day. Contracts permitting option of delivery must state the first and last dates of
delivery. For Example: 18th January to 17th February, 31st January to 29th Feb. 2012. “Ready” or “Cash” merchant contract shall be deliverable on the same day. “Value next day” contract shall be deliverable on the working day immediately
succeeding the contract date. A spot contract shall be deliverable on second
succeeding working day following the contract date. A forward contract is a contract
deliverable at a future date, duration of the contract being computed from spot value
date at the time of transaction”. 5. 3. Place of delivery: All contracts shall be understood to read “to be delivered or
paid for at the Bank” and “at the named place”. 5.4. Date of delivery: Date of delivery under forward contracts shall be:
(i) In case of bills/documents negotiated, purchased or discounted - the date of
negotiation/purchase/ discount and payment of Rupees to the customer. However, in case the documents are submitted earlier than, or later than the
original delivery date, or for a different usance, the bank may treat it as proper
delivery, provided there is no change in the expected date of realization of
foreign currency calculated at the time of booking of the contract. No early
realization or late delivery charges shall be recovered in such cases. (ii) In case of export bills/documents sent for collection - Date of payment of
Rupees to the customer on realization of the bills. (iii) In case of retirement/crystallization of import bills/documents - the date of
retirement/ crystallization of liability, whichever is earlier?
5.5. Option of delivery: In all forward merchant contracts, the merchant, whether a
buyer or a seller will have the option of delivery. 5.6. Option of usance: The merchant purchase contract should state the tenor of
the bills/documents. Acceptance of delivery of bills/documents drawn for a different
tenor will be at the discretion of the bank

5.7. Merchant quotations: The exchange rate shall be quoted in direct terms i.e. so many Rupees and Paise for 1 unit or 100 units of foreign currency. 5.8. Rounding off: Rupee equivalent of the foreign currency Settlement of all
merchant transactions shall be effected on the principle of rounding off the Rupee
amounts to the nearest whole Rupee i.e. without paise. RULE 6 Early Delivery, Extension and Cancellation of Foreign Exchange
Contracts
6.1. General
(i) At the request of a customer, unless stated to the contrary in the provisions of
FEMA, 1999, it is optional for a bank to: (a). Accept or give early delivery; or
(b). Extend the contract. (ii) It is the responsibility of a customer to effect delivery or request the bank for
extension / cancellation as the case may be, on or before the maturity date of
the contract. 6.2. Early delivery: If a bank accepts or gives early delivery, the bank shall
recover/pay swap difference, if any. 6.3. Extension: Foreign exchange contracts where extension is sought by the
customers shall be cancelled (at an appropriate selling or buying rate as on the date
of cancellation) and rebooked simultaneously only at the current rate of exchange. The difference between the contracted rate, and the rate at which the contract is
cancelled, shall be recovered from/paid to the customer at the time of extension. Such request for extension shall be made on or before the maturity date of the
contract. 6.4. Cancellation
(i) In case of cancellation of a contract at the request of a customer, (the request
shall be made on or before the maturity date) the Authorised Dealer shall
recover/ pay, as the case may be, the difference between the contracted rate
and the rate at which the cancellation is effected. The recovery/payment of
exchange difference on cancellation of forward contracts before the maturity
date may be either upfront or back-ended at the discretion of banks. (ii) Rate at which cancellation is to be effected:
(a) Purchase contracts shall be cancelled at T.T. selling rate of the
contracting Authorised Dealer
(b) Sale contracts shall be cancelled at T.T. buying rate of the contracting
Authorised Dealer

(c) Where the contract is cancelled before maturity, the appropriate forward
T.T. rate shall be applied. (bi) Notwithstanding the fact that the exchange contract between the customer
and the bank becomes impossible of performance, for whatever reason,
including Government prohibitory orders, the exchange contract shall not be
deemed to have become void and the customer shall forthwith apply to the
Authorised Dealer for cancellation, as per the provisions of paragraph 6.4.(i)
and (ii) above. (iv)
(d) In the absence of any instructions from the customer, vide para 6.1(ii), a
contract which has matured shall be cancelled by the bank on the 7th working
day after the maturity date. (e) Swap cost, if any, shall be recovered from the customer under advice to him. © When a contract is cancelled after the maturity date, the customer shall not be entitled
to the exchange difference, if any, in his favour, since the contract is cancelled on
account of his default. He shall, however, be liable to pay the exchange difference
against him. 6.5. Swap cost/gain:
(ii) In all cases of early delivery of a contract, swap cost shall be recovered from
the customer, irrespective of whether an actual swap is made or not. Such
recoveries should be made either back-ended or upfront at discretion of the
bank. (iii) Payment of swap gain to a customer shall be made at the end of the swap period. 6.6. Outlay and Inflow of funds:
Authorised Dealer shall recover interest on outlay of funds for the purpose of
arranging the swap, in addition to the swap cost in case of early delivery of a
contract.
If such a swap leads to inflow of funds, interest shall be paid to the customer. Funds
outlay / inflow shall be arrived at by taking the difference between the original
contract rate and the rate at which the swap could be arranged. The rate of interest
to be recovered / paid should be determined by banks as per their policy in this
regard.

CAIIB BFM strategy

BFM::;;

The strategy for the study of Bank Financial Management which many people finds difficult to clear. If you study properly, it is easy to clear the BFM. This subject also contains 4 modules, they are;

-International Banking

-Risk Management

-Treasury Management

-Balance Sheet Management

Many people do not correlate the syllabus of the subject with day to day banking activity. So they find it difficult to score and understand this subject. But this not true, this subject is very much important which will increase your knowledge regarding top management & middle management functioning of your bank as well as banking as a whole industry.

All the modules are equally important, but you may clear the paper with three modules study also. Module A & B are relatively easy and scoring as well. Let us discuss strategy for each module.

Module A-International Banking

Important topics are Exchange Rates and Forex Business, Basics for Forex Derivatives, Documentary LC, and Facilities for Exporters & Importers

Rapid reading or bullet point reading is quite useful for this module. Practice numerical again and again.

Many numerical/case studies are asked from this module which are quite easy as compared to Module B & Module D case studies. Refer the case studies from McMillan given at the end of the topic. Also N.S.Toor book has many numerical and case studies. Questions are asked on Exchange rates, Shipment Finance etc.

Module B-Risk Management

All chapters are equally important as they are interlinked to each other. Again focus more on case studies/numericals given in Apendix at the end of chapter. Maximum case studies are asked from this module. Though short notes are useful for this module I would suggest McMillan reading for this module because some questions are twisted type for which you require details of the concept which is hard to get from short notes. RBI website contains FAQs which are quite useful for this modules, you should read them at least once.

Module C- Treasury Management

Important topics are Introduction, Types of treasury products, Treasury Risk Management, Treasury and Asset-Liability Management.

Mostly questions asked on this module are theoretical type, so through reading of McMillan is important. If you don’t get time then you can skip this module or read short notes since the weighted of this module for exam point of view is low according to me as compared to Module A&B. But those who wish to make carrier or work in treasury department, this is the best module to learn.

Module-D Balance Sheet Management

Important chapters are Components of ALM in Bank’s Balance Sheet, Capital and banking Regulation,, Capital Adequacy, Asset Classification and Provisioning Norms, Interest rate Risk management.

Though McMillan book contain sufficient material but I would suggest you to refer RBI website for this module. In this module focus more on Case Studies as compared to theoretical questions. Do not skip this module as it is much important for exam as well as knowledge point of view. No need to read McMillan line by line.

Overall you have to keep balance between theoretical reading as well as case studies/numerical since the paper would contain 40-45% case studies. N.S.Toor book contains good case studies and MCQs. Also there are many resources available on the internet from where you will get case studies for this module. After giving this paper you will realized that BFM is easier as compared to ABM and no need to worry for BFM.

CAIIB ABM Today's Recollected questions (02.12.2018)

CAIIB ABM Today's Recollected questions (02.12.2018)  Shared by memebers

Today  Paper normal, numerical s were moderate

1.Correlation problem 5 marks
2.Job enlargement
3. Maslow's theory of motivation
4.Job enrichment
5.Motivation theories
6. performance appraisal methods,
7.feedback method
8.Direct formula based theory questions from GDP concept
9.Vroom expectancy mcqs
10.360 & Hallo effect
11. GDP concepts case study
12.Only theory questions on assets
13.Time series a case study consisting of 5 numericals involving coding principle and residual method

14.velocity of money direct formula
15.Simplex method -5marks,
16. linear programming-5m
17.
M1
M2
M3 concept. 5 mark block.

18.Serfaesi act 3 mark

19.Gdp 5-6 mark

20.Sampling mathod 3-4 question

21.Training and leraning 5 mark block

22.Hr 1 block

1. 23.

Simulation, time series ,dscr correlation best fit equation break even point sales probability case studies asked
Some more recollected

Re-collected questions posted by our members
---------------------------------------------------------------

01. Direct agriculture SME 25%
02. Correlation - Case study 5 marks
03. Job Enrichment
04. Maslow's theory of motivation
05. GDP, GNP and GDP factor cost case study 5 marks
06. 360-degree feedback
07. Halo Effect
08. Time series - Case study consisting of 5 numericals involving coding principle and residual method - 5 marks
09. Vroom expectancy MCQs
10. Motivation theories
11. Feedback methods
12. Performance appraisal methods
13. Theory questions on assets
14. Estimation - case study 5 marks
15. Balance sheet - case study 5 marks
16. Money supply 2 year case study 5 mark
17. Full form 'BARS' -Behaviourally Anchored Rating Scale
18. DCSR

Case Studies
Two from Module-A
Two from Module-B
Four from HR (Module-C)
Two from credit (Module-D)

Money supply 5 marks, LPP Simplex method 5 marks, time series 5 marks, balance sheet ratio analysis 10 marks, and some small problems on annuity, bond value, estimation, sampling..

• HR questions and credit management questions were tricky. Under HR, many questions were from motivation theories and performance appraisal techniques

 IS LM curve,
Break even point: case study numerical 😢
Simplex
Time series : reduction method case study
Teir 1 capital
Achievement theory
Vroom
MBO
Hrm case study on Appraisal methods.
Case study on M1,M2
Gdp GNP 3 marks
Bonds numericals and theory 5 marks
Current ratio comparisons
Dscr
Loan documentation
Case study on LPP
Correlation , regression slope
FV/PV calculation
Population , proportion,
Binomial distribution,
Working capital operation cycle method theory.



Johari window is for
Correlation coefficient r=1,-1,0,infinty For which 1was ans.
Job enlargement.
Linear programming 5mark.
M1,M2,.....5marks with coins in question. Based on
Sarfaesia total 3questions, console bond, 2question on differential int rate
Lm curve related 2questions, time series 5mark.
GDP (Y,) based on exp. method but have to form equation with all variables, only export and govt spending numbers others are Y related values, Solve equation and get GDP. If export increases what is the % changed in GDP... Total 5 marks.
Balance sheet given dscr, inventory turnover ratio etc.
2hrm case studies, but all questions are basic knowledge from book.
Appraisal 360degree, BARS.

• cleared ABM 

questions asked where

HRM one case study related to Performance Appraisal
one related to managerial dimensions

LPP one case study
Johari window
DSCR 2 qns
3 bond problems
GDP 3 qns

The central limit theorem assures us that the sampling distribution of the mean
A) Is always normal
B) Is always normal for large sample
C) Approach normality as sample size increases
D) Appears normal only when Necessary is greater than 1000

Finite population multiplier is
A) √(N-1)/(N-n)
B)√(N-n)*(N-1)
C) √(N-n)/(N-1)
D) √(N-n)/(n-1)

PL and b/s one case study
as ber sarfaesi act who can take possession

mean and sd 2 pbms

1 qn on correlation

characteristics of type A personality
IS curve one qn

relation of demand and supply curve

compensation to employees governed by which all acts

2qn on debtor and creditor velocity ratio

 steps in documentation

in b/s if one asset is wrongly mentioned as current asset what will be financial implications

features of money

stages of emotional intelligence

training and learning 3 qns

Current Affairs on 02.12.2018

Today's Headlines from www:

*Economic Times*

📝 Wipro aims to make $150 million from intellectual property this FY

📝 Tata Motors sales declines 3.8% to 52,464 units in November

📝 OMCs reduce jet fuel prices; ATF cost in Delhi down by 11%

📝 GST collection for November drops to Rs 97,637 crore

📝 HDFC raises Rs 9,000-cr in FY19’s biggest bond sale

📝 Tata Capital aims for 25-30% growth despite NBFC woes

📝 TRL Krosaki, Cogent Power to be part of Tata Steel portfolio rejig

📝 BuidSupply raises $3.5 million from Venture Highway in Series A

*Business Standard*

📝 With 9% growth, UPI transactions cross 500-million mark in November

📝 Naspers plans 'significant investments' to make use of $10 bn cash pile

📝 Cotton yield in India to hit three-year low on massive crop damage

📝 Karnataka set to unveil India's first platform for intellectual properties

📝 Sun TV eyes lower double-digit growth in H2 ad revenues this fiscal

📝 As imports swell, Vedanta plans 25% ramp-up in downstream output

📝 HackerEarth eyes aggressive US ops, expects biz to rise from 35% to 60%

📝 With Rs 15-million package, Microsoft top recruiter at IITs on Day 1

*Financial Express*

📝 Bank unions threaten nationwide strike on December 26

📝 Google to shut Hangouts by 2020! Messaging app to stop its functions, says report

📝 Patanjali to join hands with Jharkhand govt to market honey, vegetables

📝 Centre to set up 23 GW solar plants in Leh-Kargil

📝 Mauritius’ SBM gets RBI approval to merge operations with its Indian subsidiary

📝 Rise of online shopping makes warehouses hot property in India

*Mint*

📝 India to buy supersonic missiles in Rs 3000 crore arms spending

📝 Maruti Suzuki domestic sales decline, M&M rise in November

📝 Gold prices decline on weak global cues, low demand.

MSME recollected 01.12.2018

Msme recollected 01.12.2018
Smera, itcot, stages of msme, duration for sanction upto 25 lakhs, duration for sanction upto 50 lakhs, duration for disbursement after sanction upto 50 lakhs, unido, working capital sum, ratio sum, stages of cluster, credit rating agencies, composite loan limit, msmed act in which year, sarfaesi in which year, ots, sum on provisioning, question on Cambridge something, Fiwe, wto, dscr, asset turnover ratio, working capital turnover ratio, diffusion effect of technology change, questions of market strategy, women entrepreneurs , minimum and maximum directors of public and private ltd company, shareholders, limited liability partnership, minor partner, deferred payment guarantee, performance guarantee, red clause lc, back to back lc.

Current Affairs on 1st December 2018

Today's Headlines from www:

*Economic Times*

📝 Government breaches full-year fiscal deficit target at October-end

📝 Forex reserves drop by $24.02 billion to $400.52 billion in April-September

📝 Tata Steel works on strategy to raise share of value added steels to 30%

📝 Government plans to set up NBFC with Rs 2,000 cr to fund food processing firms

📝 IDFC Bank to seek shareholders' nod next month for name change

📝 Tech Mahindra launches new business unit for video services in 5G

📝 GEECL to invest $2 bn to exploit shale gas reserves

*Business Standard*

📝 Govt nudges telcos, airlines to raise rates, shun bitter price wars

📝 NBFCs remain fastest-growing sector for deployment of bank credit: RBI

📝 Govt puts curbs on gold dore imports, places it under restricted category

📝 LIC pays govt Rs 24 billion as dividend from its Rs 48-billion surplus

📝 BSE to launch bidding platform for retail investor in G-secs, T-bills

📝 FPIs invested Rs 109.25 bn in equity, debt in November

📝 US, Canada, Mexico sign trade deal to replace NAFTA after bickering

*Financial Express*

📝 SoftBank sets $21-billion IPO, skipping price range

📝 Healthcare takes centre-stage in policy narrative: Niti Aayog

📝 India’s Q2 GDP growth slows down to 7.1%; massive fall from 8.2% in June quarter but still beats China

📝 Government extends deadline for filing TDS returns for Oct-Dec to Jan 2019

📝 US proposes changes to H1B visas; to be given to most skilled, highest paid foreign workers

📝 Dalmia Bharat Cement develops new chemically modified cement

📝 Centre, states apportion Rs 33,000 crore IGST in November

📝 Pizza Hut plans to open over 200 outlets in India by 2022

*Mint*

📝 UrbanClap raises $50 million in funding led by Steadview, Vy Capital

📝 UIDAI asks banks not to discontinue Aadhaar payment system

📝 Govt seeks inter-ministerial consultation on draft data protection bill

📝 Core sector growth slows to 4.8% in October

📝 Anil Ambani clears legal hurdle to sell telecom assets to Reliance Jio

📝 Subsidised LPG price cut by ₹6.5, non-subsidised by ₹133

📝 Cairn to partner US oil services consortia to develop Indian blocks.

CAIIB ABM Strategy

CAIIB ABM Strategy

ABM is one of the compulsory subjects for CAIIB. Most of the people find difficult to clear this paper. Today, I will tell you how to study for ABM subject.

This subject also contains 4 modules

MODULE – A: Economic Analysis

MODULE – B : Business Mathematics

MODULE – C : HRM in banks

MODULE – D : Credit Management

As we are bank employees we get very less time for study, so how to decide which topics to be read, which topics to be skipped?

-As I had told you in my previous blog article that generally paper consists of 60% theoretical & 40% numerical or case studies, so choose the module to be study in deep so as to clear the paper easily depending upon your personal strength and weakness.

If you observed all the modules, you will realize that Module A and Module C are most scoring modules. Do not skip these modules. Module B contains Business Mathematics which many people find difficult to study as the level of mathematics is tough, especially for non-engineering background people. Those who works in Credit/Loan Department will find that Module D easy as well as interesting. Module D is most important not only exam point of view but also for your daily working in Credit Department. So do not skip Module D.

IMPORTANT TOPICS FROM EACH MODULE

Module A- Supply and Demand, Money Supply and Inflation, Business Cycles, GDP Concepts and Union Budget.

No need to read McMillan Book line by line for thise module, short notes will be quite useful for studying this module. Don’t read stats given in these chapters. In GDP Concepts and Union Budget chapters numerical are asked which are quite easy provided you know the components and formula.

Module B-Time Value of Money, Sampling Methods, Simulation, Bond Investment

Don’t go to deep for study this module as mathematical calculations are difficult to understand especially for non engineering background people. Practice the examples given in McMillan. Those who are not good at math can skip this module and focus more on remaining modules.

Module C-Development of Human Resources, Human Implications of Organisations, Performamce Management, HR & IT

You need to read thoroughly all the topics from this module from McMillan. It is quite easy and theoretical only. Repeatedly read MCQs from N.S. Toor book of this module.

Module D-Overview of Credit Management, Analysis of Financial Statement, Working Capital Finance, Credit Control and Monitoring, Rehabilitation and Recovery.

Read this module from McMillan book only. The chapters in this module are not lengthy as compared to other modules. Practice Numerical from Financial statement and balance sheet.

Overall, you have to study at least three modules in detail so as to achieve the 50 score. You can choose the modules to study more depending upon your strength. I would suggest that you can keep module B at last, just read formulas from this module, as this module is quite boring, lengthy and hard to understand.

https://iibfadda.blogspot.com/

CAIIB exams All the best

CAIIB:

Good Evening All,

This is the time for CAIIB exams ..only one day left for caiib ABM.

How to handle the exam.

1st remember for CAIIB exams each and every question CARRIES 1 MARK .. SO 100 questions 100 MARKS..NOT LIKE JAIIB 120 QUESTIONS.

so 100Q= 100 marks.

Try to get lead marks in 1st paper itself, to reduce tesion/pressure for other subjects.

Reach early to the exam center.

If possible take leave and prepare well.

Try to be cool in exam center , dont compare with others.

Usefully exam will be tough but remember you can handle nicely by applying commonsense also.

if you dont know the answer use filter option in answers.

REMEMBER either theory/ numerical /case studies each question carries one mark.. try to complete easy/known Q&A in one short , next round go for numericals/case studies.

All the best

Most important KYC aml terms

Account Monitoring Order
In the United Kingdom and several other countries, an order
from a government authority requiring a financial institution
to provide transaction information on a suspect account for a
specified time period.

Affidavit
A written statement given under oath before an officer of
the court, notary public, or other authorized person. It is
commonly used as the factual basis for an application for a
search, arrest or seizure warrant.

Alternative Remittance System (ARS)
Underground banking or informal value transfer systems.
Often associated with ethnic groups from the Middle East,
Africa or Asia, and commonly involves the transfer of values
among countries outside of the formal banking system. The
remittance entity can be an ordinary shop selling goods that
has an arrangement with a correspondent business in another
country. There is usually no physical movement of currency
and a lack of formality with regard to verification and recordkeeping.
The money transfer takes place by coded information
that is passed through chits, couriers, letters or faxes, followed
by telephone confirmations. Almost any document that carries
an identifiable number can be used by the receiver to pick up
the values in the other country. The systems are referred to
by different names depending upon the country: Hawala (an
Arabic word meaning “change” or “transform”), Hundi (a Hindi
word meaning “collect”), Chiti banking (referring to the way the
system operates), Chop Shop banking (China), and Poey Kuan
(Thailand).



Anti-Money Laundering Program
The system designed to assist institutions in their fight against
money laundering and terrorist financing. In many jurisdictions,
government regulations require financial institutions, including
banks, securities dealers and money services businesses,
to establish such programs. At a minimum, the anti-money
laundering program should include:
1. Written internal policies, procedures and controls;
2. A designated AML compliance officer;
3. On-going employee training; and
4. Independent review to test the program.



Bank Draft
Vulnerable to money laundering because it represents a
reputable international monetary instrument drawn on a
reputable institution, and is often made payable—in cash—
upon presentation and at the issuing institution’s account in
another country.

Bank for International Settlements (BIS)
An international organization that serves as a bank for central
banks and which fosters international monetary and financial
cooperation with the purpose of attaining stability in the world
economy. It hosts the Secretariat of the Basel Committee on
Banking Supervision. The Committee has formulated broad
supervisory standards and guidelines on Know Your Customer
issues. See www.bis.org.


Bank Secrecy
Refers to laws and regulations in countries that prohibit
banks from disclosing information about an account—or even
revealing its existence—without the consent of the account
holder. Impedes the flow of information across national borders
among financial institutions and their supervisors. One of
FATF’s 40 Recommendations states that countries should
ensure that secrecy laws do not inhibit the implementation of
the FATF Recommendations.

Bank Secrecy Act (BSA)
The primary U.S. anti-money laundering regulatory statute
(Title 31, U.S. Code Sections 5311-5355) enacted in 1970 and
most notably amended by the USA Patriot Act in 2001. Among
other measures, it imposes money laundering controls on
financial institutions and many other businesses, including the
requirement to report and to keep records of various financial
transactions.

Bank Secrecy Act (BSA) Compliance Program
A program that U.S.-based financial institutions—as defined by
the Bank Secrecy Act—are required to establish and implement
in order to control money laundering and related financial
crimes. The program’s components include at a minimum: the
development of internal policies, procedures and controls; the
designation of a compliance officer; ongoing employee training;
and an independent audit function to test the program.

Bare Trust

Also known as a dry, formal, naked, passive, or simple trust, in
which the trustees have no duties other than to convey the trust
property to beneficiaries when called upon to do so. Bare trusts
are vulnerable


Basel Committee on Banking Supervision (Basel Committee)
The Basel Committee was established by the G-10’s central
bank of governors in 1974 to promote sound supervisory
standards worldwide. Its secretariat is appointed by the Bank
for International Settlements in Basel, Switzerland. It has
issued, among others, papers on customer due diligence for
banks, consolidated KYC risk management, transparency in
payment messages, due diligence and transparency regarding
cover payment messages related to cross-border wire
transfers, and sharing of financial records among jurisdictions
in connection with the fight against terrorist financing. See
www.bis.org/bcbs.

Batch Processing
A type of data processing and data communications
transmission in which related transactions are grouped together
and transmitted for processing, usually by the same computer
and under the same application.

Batch Transfer
Transfer comprising a number of individual wire transfers that
are sent to the same financial institution, and which may be
ultimately intended for different persons.



Benami Account
Also called a nominee account. Held by one person or entity on
behalf of another or others, Benami accounts are associated
with the hawala underground banking system of the Indian
subcontinent. A person in one jurisdiction seeking to move
funds through a hawaladar to another jurisdiction may use a
Benami account or Benami transaction to disguise his/her true
identity or the identity of the recipient of the funds.

Beneficial Owner
The natural person who ultimately owns or controls an account
through which a transaction is being conducted. It also
incorporates those persons who exercise ultimate effective
control over a legal person or arrangement.

Beneficiary
All trusts (other than charitable or statutory-permitted noncharitable
trusts) must have beneficiaries, which may include
the settlor. Trusts must also include a maximum time frame,
known as the “perpetuity period,” which normally extends up
to 100 years. While trusts must always have some ultimately
ascertainable beneficiary, they may have no defined existing
beneficiaries. Trusts may only have objects of a power until
some person becomes entitled as beneficiary to income
or capital on the expiry of a defined period, known as the
“accumulation period.” The latter period is normally coextensive
with the trust perpetuity period, which is usually
referred to in the trust deed as the “trust period.”

Bureau de Change
Also called “casa de cambio” or “exchange office,” a bureau
de change offers a range of services that are attractive to
money launderers: currency exchange and consolidation of
small denomination bank notes into larger ones; exchange of
financial instruments such as travelers checks, money orders
and personal checks; and telegraphic transfer facilities. In some
countries, such businesses are not as heavily scrutinized for
money laundering as are traditional financial institutions. Also,
their customers are often occasional, making it more difficult for
these businesses to “know their customers.”


Caribbean Financial Action Task Force (CFATF)
A FATF-style regional body comprising Caribbean states,
including Aruba, the Bahamas, the British Virgin Islands, the
Cayman Islands and Jamaica. See www.cfatf.org.


Clearing Account
Also called an “omnibus” or “concentration account.” Held by a
financial institution in its name, a clearing account is used
primarily for internal administrative or bank-to-bank transactions
in which funds are transmitted and commingled without
personally identifying the originators. The USA Patriot Act
prohibits the use of such accounts for customer transactions.

Collection Accounts
Immigrants from foreign countries deposit many small amounts
of currency into one account where they reside, and the
collected sum is transferred to an account in their home country
without documentation of the sources of the funds. Certain
ethnic groups from Asia or Africa may use collection accounts
to launder money.

Impossible trinity

The impossible trinity (also known as the trilemma) is a concept in international economics which states that it is impossible to have all three of the following at the same time:

a fixed foreign exchange rate

free capital movement (absence of capital controls)

an independent monetary policy

It is both a hypothesis based on the uncovered interest rate parity condition, and a finding from empirical studies where governments that have tried to simultaneously pursue all three goals have failed.

According to the impossible trinity, a central bank can only pursue two of the above-mentioned three policies simultaneously. To see why, consider this example:

Assume that world interest rate is at 5%. If the home central bank tries to set domestic interest rate at a rate lower than 5%, for example at 2%, there will be a depreciation pressure on the home currency, because investors would want to sell their low yielding domestic currency and buy higher yielding foreign currency. If the central bank also wants to have free capital flows, the only way the central bank could prevent depreciation of the home currency is to sell its foreign currency reserves. Since foreign currency reserves of a central bank are limited, once the reserves are depleted, the domestic currency will depreciate.

Hence, all three of the policy objectives mentioned above cannot be pursued simultaneously. A central bank has to forgo one of the three objectives. Therefore, a central bank has three policy combination options.

In terms of the diagram above (Oxelheim, 1990), the options are:

Option (a): A stable exchange rate and free capital flows (but not an independent monetary policy because setting a domestic interest rate that is different from the world interest rate would undermine a stable exchange rate due to appreciation or depreciation pressure on the domestic currency).

Option (b): An independent monetary policy and free capital flows (but not a stable exchange rate).

Option (c): A stable exchange rate and independent monetary policy (but no free capital flows, which would require the use of capital controls).

Currently, Eurozone members have chosen the first option (a) while most other countries have opted for the second one (b). By contrast, Harvard economist Dani Rodrik advocates the use of the third option (c) in his book The Globalization Paradox, emphasising that world GDP grew fastest during the Bretton Woods era when capital controls were accepted in mainstream economics. Rodrik also argues that the expansion of financial globalization and the free movement of capital flows are the reason why economic crises have become more frequent in both developing and advanced economies alike. Rodrik has also developed the "political trilemma of the world economy", where "democracy, national sovereignty and global economic integration are mutually incompatible: we can combine any two of the three, but never have all three simultaneously and in full.".

What is Fin Tech ?

What is Fin Tech ?
The term “Fin Tech” is a contraction of the words “finance” and “technology”. It refers to the technological start-ups
that are emerging to challenge traditional banking and financial players and covers an array of services, from crowd
funding platforms and mobile payment solutions to online portfolio management tools and international money
transfers.
Some of the major FinTech products and services currently used in the market place are Peer to Peer (P2P) lending
platforms, crowd funding, block chain technology, distributed ledgers technology, Big Data, smart contracts, Robo
advisors, E-aggregators, etc. These FinTech products are currently used in international finance, which bring together
the lenders and borrowers, seekers and providers of information, with or without a nodal intermediation agency

What is Block Chain ?

What is Block Chain ?
Block chain is a distributed ledger in which transactions (e.g. involving digital currencies or securities) are stored
as blocks (groups of transactions that are performed around the same point in time) on computers that are
connected to the network. The ledger grows as the chain of blocks increases in size. Each new block of
transactions has to be verified by the network before it can be added to the chain. This means that each
computer connected to the network has full information about the transactions in the network.

advantages and the disadvantages :
Frequently cited benefits of Block chain are its transparency, security and the fact that transactions are logged in
the network.
Some of the disadvantages currently include the lack of coordination and the scalability of this technology. One of
the best-known applications of Block chain technology at the present time is bitcoin. Transactions in this virtual
currency are largely anonymous. This creates ethical risks for financial institutions dealing with users of this
currency, because they are unable to (fully) verify their identity.

Potential applications of Distributed Ledger Technology and Blocked Chain::

Distributed ledger technology is an innovation with potentially broad applications in financial market infrastructures
(FMIs) and in the economy as a whole. Its most common use at present is for digital currencies, but firms are stepping
up their R&D activities for other uses including securities trading, smart contracts, and land and credit registries.
It has also been observed thatmarket participants in other securities markets are exploring the usage of Block chain or
Distributed Database technology to provide various services such as clearing and settlement, trading, etc. Indian
securities market
may also see such developments in near future and, therefore, there is a need to understand the benefits, risks and
challenges such developments may pose.

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


Distributed ledgers Technology (DLT) ::

Distributed ledger technologies (DLT) provide complete and secure transaction records, updated and verified by users,
removing the need for a central authority. These technologies allow for direct peer-to-peer transactions, which might
offer benefits, in terms of efficiency and security, over existing technological solutions. It is an innovation with
potentially broad applications in financial market infrastructures (FMIs) and in the economy as a whole. Its most
common use at present is for digital currencies, but firms are stepping up their R&D activities for other uses including
securities trading, smart contracts, and land and credit registries. If widely adopted, distributed ledger technology can
pose new challenges for regulation

The major benefits are reduced cost; faster settlement time;reduction in counterparty risk; reduced need for
third party intermediation; reduced collateral demand and latency; better fraud prevention; greater resiliency;
simplification of reporting, data collection, and systemic risk monitoring; increased interconnectedness; and
privacy.

CAIIB recollected questions single link

CAIIB ABM TODAY EXAM 55 QUESTIONS RECOLLECTED by Srinivas Kante

1.Hicks -Hansen synthesis
2.Basic difference between IS and LM curve
3.Increase in money supply Lowe interest rate and raising inflation
4.NDP @factor cost
5.Demand –pull inflation means
6.Erosion as per the role
7.Climate Survey
8.Case study one related to Budget
9.Central limit theorem
10.sampling methods .
11. job erosion
12 curreneaccountdefficit
13 Gross deficit etc.
case
14..standard deviations mean related
15 .Case 3 Xyz jewellery shop
Related
But the level oh complexity is very high..n ..
16 fiscal policy ,monetary policy
17.demand supply curve etc...
18.Correlation and regression numerical
19.NNP @ factor cost
20working capital
21. bank guarantee
22.Performance Appraisal
23. Halo effect Tendency..
24.NNP at market price
25.In correct characteristics in Business cycle
26 Notional income also known as..
27.Least squre method used in..
28.Fctoring of services the factor
29.Lender to sensitising test and scenerion analysis..Type of loans
30. Debt to equity of enter prises raatio is.05 its...
31.Bank Gaurantee to commoidity brokarage (margin %)..
32.find P(x bar >/85) ?
33Std error of the mean is????
34 Estimate of the population proportion is..
35 Commericial paper issued multiples of..
36.Commericial paper issued maximum period
37.Find P(88|
39.HRM
40.monetary policy
41.Annuity due prblems
42. Future Value problem
43.Estimation
44.Bond price
45.Revenue dediciat problem
46.Job evealution Job specfication case study
47. Turn over methodeapplied on leass than 5 cr
48. Factor of Supply schedule
49.Lional econmic statement.
50. GDP calculation
51. GNP at amrket price calculation
52. Sampling Methodes
53.Hallo effect
54 Cov(X,Y)=150 mean X=20 mean Y=10 standard deviation x=25 then equation of regression line is
55. 3 questions from HRM 5 marks each



Today CAIIB BFM Recollected questions by Srinivas Kante June 10 , 2018



1.Most of the questions from foreign exchange numericals

2. case study on DGAP, Leverage ratio

3. case study on LC

4. Risk weight on Housing loan

5.Diffence between basis risk, gap risk, and yield curve risk

6. Letter of credit related

7.Capital charge for PR questions

8.Problems on NII

9.YIELD On T BILL

10 .Tier 1 CRAR

11.Call risk

12.NRE ,NRO, FCNR account related

13 Beta factor and basic indicator approach

14.The main object of the LRM loan review mechanism

15.The notional transit period permitted ..

16. One case study on asset liability management

17. Exchange fluctuation risk of ecgc

18. Rupee account... nostro,vostro,loro,mirror are in option

19. case study on TT buying, selling

20. RAROC,Who decide maximum limit of risk

21.Corporate debt instrument characteristics

22.Basel 3 bank apply – for computing capital requirement from existing risk..

23.residual risk also known as..

24.Elements of common equity Tier 1 cap

25.In repo transaction in G-sec , the settlement carried in first leg is ------------ basis

26. BASEL 3 going concern capital is

27.Liqidity risk is a type of time risk??

28.GOI not issue T bill with ------------maturity days

29.Notice money market period is…

30Duration is the elasticity of the bond

31.In CP Buy bank offer may not be made before ----days

32.Features of hedging , Int, Arbitrage ,trading , Investment

33.Nostro Accounts are – accounts

34.Emp option risk about pre closure

35. Feature of CCB BASEL 3

36.FX clear is a forex dealing sym developed by

37.Features of CRR

38.Calculation of LCR under level1 Asset

39.Cross rate

40.Charactristics of foreign exchange market

41.Temporary Asset--- revaltion not present

42.Calculation of capital for General market risk

43.In stock of HQLA for the purpose of cap liquidity coverage ratio…

44. BCBS introduced new approach called..

45.Instrument having lower demand and trading…

46 In india short position allowd..

47.Features of LCR

48.Rapid Growth period bank can make…

49. RAROC,Who decide maximum limit of risk

50. case study on TT buying

51. what does CRR impact

52. no.of key priniciples in Supervising review process

53. Features of CCB in BASEL 3

54..5 marks case study from CALL and PUT option

55.Rupee account Vostro or Mirror?

56. Calculate price for a 270day CP having face value 100/- when yield is 7.57%?

a. 94.6970,a. 94.6770, c. 94.6570, d. 94.6370

57. Calculate yield on a 182 day T bill issued at 97.30/-?

a. 7.57,b. 7.75, c. 5.57, d. 5.75%

58.no.of key priniciples in Supervising review process

59. Features of CCB in BASEL 3

60. 1.yield in tBill

61.rwa

62. Case study o. Nii and nim

63. Case study on rwa and capital charge

64.case study on leverage ratio

65. Case study on lc , advising bank confirming bank etc

66 case study on foreign exchange

67. yield to maturity 02 questions asked

68.call money Nd term money

69. Approach basic indicator approach , advance approach

70. M duration

71. piller 3 ,spr

72. 5 marks case study from CALL and PUT option

73. NII - 5marks

74.CRAR - 5marks

75.FEDAI - 5marks

76.Exchnge rates- 5marks

(USD to INR)

77.Exchange rates - 5marks

(USD - Jap yen - GBpound)

78. Lc - 5 marks

79 DGAP nd Levarage ratio - 5marks

80.5 questions on USD JPY against foreign person returning to India 





CAIIB Retail Recollected 2018 June ::

Recalled questions



Bbps

Case study on hl income tax claim

Fv n pv

Fsi

NFS details

Credit card

Free charge

Emi Calculation, Rule 72, Questions on CIBIL, SLM and WDV

 housing loan cs education loan cs bbps cs ekyc depriciation cs question on time value of money and also more and more question on theory part



 Case study on

BBPS

HL income tax

CKYC

Depriciation

Case study on

Bcsbi 5 que

 Imps,UPI, *99#,mmid

[Credit card 5 que

 Sarfasi,, lokadalak, drt 5 que

Car loan new oold car 5; questions

Housing loan tax benefits 5 que

 Slm , wdv depreciation 3 que

Fund transfer mobile banking maximum per transaction and max per month per beneficiary

[Sub prime loan

[Bank charges under charge against future receivable cersai form 1 or 2 or not applicable

 Mortgage act

[ RTGS and neft

 Method of valuation of land and buildings which is to be attached as security for bank

 Product development stages

Rule 72 compounded annually doubles in 7 yrs and 6 months option 9 .6,10, 9.3,9



 Demat account can be opened in banks or DPS or brokers

If a bank issue card to customer and 10 lakh insurance cover what type of card bank issue rupay, visa, master, mastro

 If credit card a person purchases for 12000 at 37.20 annually. Per month interest. Per day ,, if he pays within time limit what is the interest charged



How can a bank protect themselves if he is relieving information about the customer

Ombudsman settlement



Kyc aml



Dispute between banks and reconstruction company securitization


[Back loading emi

 If a person wants to invest in a 10 yrs pention plan plan name?? Pmjsy, pmvvy, Jay,jsy

[Machinery value 1200 lakhs salvage value 300. End of 6 yrs under wdv method 15%

When salvage value become zero



Dep under straight line method

Cumulative depreciation value of 3rd 4th year under wdv





CAIIB HRM Recollected questions


Organic structure organization definition


Definitions for norming and performing (stages of group development)


Questions on six leadership styles (5 questions asked)


Definition of process diagnosis(in bpr implementation)


Identify best practices in change management


Key factors for successful implementatition of change within organization


Chief insecurity of most staff is change itself


Identify steps to successful change propsed by John p kotter


Responsibility charting is foundation for strong delegation


Forecasting activities in human resource planning include


What are two types of knowledge


In RAKID R stands for


Commonly used knowledge management tools are online discussion forums, online conferencing, communities of practice


Employees and managers can be classified in 4 categories. Identify-activist, reflector, theorist and pragmatist


Characteristics of training new generation - it should be short, entertaining, allows freedom


Problem on ROI


Definition of ROI


Types of motivation


Definition of motivation


Lowest need in need hierarchy theory


Which of the following is not hygiene factor-recognition


Goal efficiency is effected by- proximity, difficulty and specificity


According to Steven reiss motivation theory, how many basic desires? 16


Status is defined as need for social standing and importance


Human resource implications


Augmented learning-learning where learners interact with e learning environment


What are 3 domains of learning - cognitive. Psychomotor and affective


Psychomotor involves what characteristics


Principles of learning - readiness, exercise. Intensity and recency


One question on perception


Adult learning feature identify the wrong one


Definition of functional comptency


External factor effecting demand forecasting


One of the following is not advantage of external recruitment


Question on body language


What are the legislation on working conditions. Identify wrong act


Registering trade union gives then legal status


One of the following is not a social security act






BFM Recollected questions::





Daily votality is 5% 2.5 Find modified duration - Ans is 2.38

STRIPS (Separate Trading of Registered Interest and Principal Securities) is a ...... zero-coupon securities

Which is not a derivative product ? - Repo (Swap, Option, Forward, Repo)

ECB limit - USD 500 mn up to minimum period of 5 years and USD 20 mn up to minimum period of 3 years without prior approval of RBI

ECB is denominated in which currencies.....USD, Euro or JPY

Consessive rate of interest on postshipment rupee export credit to gold card status holder can be extended maximum - 365 days

One importer want import one machine from China.He has to open lc. The exporter wants advance payment. What type lc - red clause

Value at risk is a measure of? Gap risks in foreign exchange operations

Which office not under treasury ? Options given r Mid office, back office, front office, legal office*,

Under standard assets, provision for loss, RSV should be?? Ans - less than 10%

If interest of principle is not serviced for 90 days, what is the position of account? ans- outof order

Basel 3 teir 1 components. (Plz remember that Revaluation reserve is also now under Teir 1)

If treasury assets r withdrawn before maturity, what type of risk is it? ,

A 91 Day T bill of 93.21 wl have yield of?

If 91 days treasury is 88., then its implied yield is?

ICAAP is related to?

ADR related question

Double forward is called what ?

Related to Nro account

Nro account can be opened as sb,CA,FD type

Derivatives also lot of questions

Advising bank roles ... Like what he can do what can't

INCOTERM

IRS

Swap

Risk weightage

Lot of RWAs questions

Which is not included in calculation of NDTL/DTL for CRR/SLR

Component of tier 1

Rwa as per Basel III for housing loan based on LTV

Many questions sellect correct or incorrect about NRO NRE FCNR ECB EEFC CCIL

Estimated occurence of probability

Questions on currency derivatives, forwards, swaps

Forex market characteristics

One question related to embedded option risk

As per basic indicator approach calculation of capital charge 15% of average gross income over there years given but one of the year is having negative one that we have to ignore.

8.83GS2023price100.49 with yield 8.75 .....just it is given and based on this statement he asked for 5marks

Crystallization period for export

One question on American and europian option

Capital charge on operational risk based on standardized approach and basic indicator approach

Questions on ADR AND GDR

Questions on option and forward contact, future

Loan To Value Ratio

Risk Weight %

Swap Defination , ADR and INCOTERMS



RWA calculation for operational risk under Standardized approach

DGAP

Conceptual question on FCNR, RFC, NRO, NRE

Operational risk calculation all approaches

Modified duration

Tier 1 n tier 2 numerical

LC based case studies for 5 marks

Basic inducater appoach market risk 5 number

Modified duration of equity5 ques

Calculations of capital adequacy ratio quite a few questions

10 questions at from various risks associated with Treasury operations

Interest rate swap 5 questions

Bill buying 5 questions

EXCHANGE RATE

AAA A BB Rating Chart Questions for Risk Weighted Calculations

Yield Calculation

W RSA,RSL NUMERICAL

RATED BOND NUMERICAL

Yeild of bond numerical

BASIC INDICATOR APPROACH NUMERICAL

BPV

Forex t.bill

Leverage

Forward contact

CRAR

Operational risk

Treasury theoritical

60question theory easy

No ques from volatility and bpv

Call risk problems

packing credit problems

Rsl. Rsa.. Md problems

Leveage ratio related case study

BASEL III Tier 1 Tier 2 capital Minimum equity ratio related

BFM Book page no 415 ICCAP related question

BFM Book page no 443 stock approach related 05 question

BFM Book page no 477 - RSL/RSA/DGAP/Modified Duration Gaps

BFM Book page no 20 - Export Bill 5 marks

BFM Book page no 295 - Estimated level of Operational Risk



Case study numerical-TEIR 1 TEIR 2 CAPITAL CONVERSION BUFFER QUESTION BASEL ON BASEL3

Case study on RFC account 5 marks

Case study on forex exchange buying commission etc 5marks

Case study on mkdified duration gap 5marks

VAR - 1 QUESTION

TEIR 1 COMPONENT-2 QUESTION

CBLO- 1 QUESTIOn



Case Studies on

1. Cancellation of contract

2. NRE/NRO POA

3. RWA

4. MEAN & SD

5. SLR

6. YTM

7. SHORT LERM & LONG TERM GAP ASSET VS Liabilities

8. NII & NIM

9. Tier1, Tier2

10. Capital adequecy

11. Nostro Vostro Loro

12. Daily volatilty

13. Stop loss limit

14. Operational risk case study

15. Foreign exchange numericals

16. Swap numericals

17. Liquidity case study

18. Forward rate agreement 25 crore 3 month swap, three year three business line calculate yield and risk weightage

19. Calculate CET Basel 3

20. Calculate Aadditional tier 1

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

2 to 3 question duration

5 question export bill(cancellation of contract rate, margin amount,rebook rate,etc)

5 question on capital adequacy (balance sheet provided, compute equity capital, tier 1 capital, total rw, capital adequacy, buffer capital)

5 question on nostro,loro vostro

5 question on FRA

5 question on net interest margin

2-3 question on bonds

3-4 question on LC

some 2-3 sums on bpv

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

1. Rate qoute 1 ques

2.LC partial delivery UCPDC rule

3.FRA 6*9 dates of delivery and maturity

4.case study on rules and guidelines regarding NRE, NRO and FCNR accounts- amt of loan,POA,remittance,fund transfer limit etc

5.coupon swaps,forward contracts

6.securitization-SPV or Commercial bank allocation of assets

7.Case study on NII,NIM,EER

8.Case study on Cash flows,deviation during years,SD/mean

9.ECGC insurance premium bear by?

10.CHIPS-USA

11.treasury risk management 4-5 ques

12.European put option

13.Authorises person categ 2

14. ques on BOP expansion

15.bank margin calculation from rates

16.Stop loss given- asked whether buy or sell at what rate to book profit or stop loss

17.monthly volatility given-calculate daily volatility

18.modified duration calculation

19.case study on Nostro Vostro and Loro and Mirror accounts

20.which is not an off balance sheet item of following

21.crystallisation of sight bills 30 days

22.LC date expired due to bank closed due to hurricane UCPDC rule

23.standard ECGC policy cover-political risk

24.basel III - tier 2 capital req of total risk wtd assets, pillar 3 def

25.standardised approach and basic indicator approach and AMA all methods for operational risk calcualtion

24. volatility can also be measured by?

25.price volatility depends on yield volatility,BPV,Yield and price

26.VaR related 2 ques theoretical

27.derivatives hedge underlying risks

28.call risk

29.Maturity ladder or baskets case study

30.provision coverage ratio def

31.asset liability mismatch


32. Bond ytm,current yield 2-3 ques



CAIIB RETAIL BANKING PREVIOUS YEARS RECOLLECTED QUESTIONS BY Srinivas Kante


1. Sukanya samridhi yojana

2. Atal pension yojana

3. Basic saving ac - 1 qtn

4. Customer relationship management

5. Full form of CIA

6. one on IMPS

7. future value 2 qtn

8. BCSBI 7 qtn

9. Education loan 5 qtn

10. Who give subsidy on mudra loans?

11. One question on rule 72?

12. Ordinary annuity one question?

13. Product stage

14. Mobile banking limits?

15. Safety esteem self actualization

16. Reliability responsiveness

17. ROC pulling

18. Max limit for prepaid instruments, expiry of prepaid instruments

19. Mudra loan - It is 50000 to 10 lakhs

20. 80c rebate? - Rs. 1.5 lakhs

21. Withdrawal allowed in ATM's?

22. CERSAI is formed under which act?

23. Many questions from retail banking services

24. Reverse mortgage

25. Para banking

26. 80C limit

27. PM fosol bima yojona

28. CTR

29. CERSAI - which act

30. PMSBY - claim amout after losing one eye or one leg or hand

31. PMEGP - implemented through

32. POS

33. EWS_size

34. RML

35. CRM gap-iii between

36. Merchant banking means

37. Closed ended fund

38. APY

39. Advantage and disadvantage of retail banking

40. Limit of cash withdrawn from other bank ATM. Option 5000, 100000, 20000, 2500

How many neft settlements in a day?

Tax benefit in Home loan

Credit card cycle

NEFT/RTGS max n min limit

Basic diff.b/w rtgs n neft

Benefit of pvt. Banking

Wealth mgmt for corporates

Education loan repayment/defaults

EMI

Income tax

Rule 72

Essence of crm

Bharat bill paymnt systm

Priority of charge in mortgage

Brown label atm

Purpose of securitisation

Conditions for pension fund mgmt

Mutual fund conditions for bank

Approval for insurance

Propagate model

7Ps

ATM transactions in metro cities

SARFAESI

DRT

Internet banking

Mobile banking

Internet Banking- strategy adaptation

Depreciation by both methods

Capital gain

Annuity

FSI Calculations

Full form of CDO

Product meaning??

Airline company used which model..SBU..INTEGRATED MODEL???

RUPAY card is issued by NPCI

Case study related to Internet banking 5 questions

Case study related to credit card charges and other

Register mortgage date and deposit of title deed

Implementation model related

WRBR.. Full form??

Date of execution of documents.. 4 months

Augmented product...

Expected product...

Under NEFT, number of settlement on week days are..12

RTGS minimum and maximum amout...

Disadvantages of Retail banking...

Mobile banking maximum amout per txn and monthly threshold related 5 questions

IFSC CODE TOTAL ALPHA..and numerics

SFMS

Question on hni, super hni, ultra hni category..

Wether the cibil report can be given to customer after levying some charge or not..

Whether moratorium is given for second hand car...

Moslow theory : Case study on needs

RTGS : when processing

Education loan : case study about margin

On college fee hostel fee computer fee other expenses..

WDV : Case Study on Depreciation l

Credit Card : Case study on interest , risk , overdue amount....

Valuation of urban land ,agriculture land Method criteria etc.....

NEFT : 12 batches

Super affluent : 50-400 Lakhs

Case study on wdv method

Three questions on rent capitalization method

Case study on maslow hierarchy

Case study on tangibles..assurance..responsivess wale 5 factors

Emi calculation 2 questions

Theory was easy

Sbu 1 question

Horizontally organized model

credit card bill (case study 5 qus.)

Three questions on rent capitalization method

Neft batches - 12 batches

depreciation numerical...

case study on gift card...

Fullform of USP - Unique Selling Proposition

case study on education loan for abroad...

1. 2 Case studies on priority charge on mortgage

2. Problem on depreciation(By WDV)... eg. Wht will be the book value after 3 years?

3. Calculating future value

4. Diff between NEFT and RTGS

5. Questions on DSA

6. Case study on tax exemptions ( both interest and principal repayment)?

7. Prob on Depriciation by straight through method?

8. What does securitisation means?

9. Risk involved with DSA?

10. Questions on Potential product PROPAGATE?

11. EMI Calculation

12. Questions on vertical, horizantal model

13. How Many NEFT settlement on weekdays and saturday

14. How many characters in UTR?

15. Question on WRBR

16. Case study on education loan... all the fig are given ( eg. Hostel fee, tution fee,

other expenses and bank margin).... we have to calculate max permissible bank loan

17. One critical case study on credit card... credit card limt, free int period, int rate, over

limit penalty, due date and purchase date are given... We have to calculate int chraged

a. if the customer pays the amt due after 18 days from due date

b. If he pays half amt before due date then calculate int charged for remaining amt on a

particular date?

C. If the amt cro sses the limit then calculate the amt he has to pay

18. If we allow overdraft in CC a/c and the customer does not repay it, then can we

approach DRT ? There are four options and we have to choose the correct one

How many neft settlements in a day?

Tax benefit in Home loan

Credit card cycle

NEFT/RTGS max n min limit

Basic diff.b/w rtgs n neft

Benefit of pvt. Banking

Wealth mgmt for corporates

Education loan repayment/defaults

EMI

Income tax

Rule 72

Essence of crm

Bharat bill paymnt systm

Priority of charge in mortgage

Brown label atm

Purpose of securitisation

Conditions for pension fund mgmt

Mutual fund conditions for bank

Approval for insurance

Propagate model

7Ps

ATM transactions in metro cities

SARFAESI

DRT

Internet banking

Mobile banking


1. Case study on Prepaid instrument

2. Case study on Depreciation WDV and SLM methods

3. Case study on Bharat Bill Payment System

4. Case study on CERSAI

5. Case study on ekyc

6. Case study on car loan?

7. Case study on 'housing loan for all' by newly launched scheme

8. Case study on Vehicle loan

9. Case study on Credit card billing

10. Case study on Education loan problem

11. Case study on Future value of ordinary annuity

12. Case study on BCSBI - 10 questions (theory based)

13. Case study on Future value of bond/annuity

14. Case study on Maslow Needs

15. Case study on CRM

16. Case study on EMI

17. Case study on Capital gain

18. Case study on Calculate Present value

19. Case study on RML


Question on hni, super hni, ultra hni category..

Wether the cibil report can be given to customer after levying some charge or not..

Whether moratorium is given for second hand car...

Moslow theory : Case study on needs

RTGS : when processing

Education loan : case study about margin

On college fee hostel fee computer fee other expenses..

WDV : Case Study on Depreciation l

Credit Card : Case study on interest , risk , overdue amount....

Valuation of urban land ,agriculture land Method criteria etc.....

NEFT : 12 batches

Super affluent : 50-400 Lakhs

Case study on wdv method

Three questions on rent capitalization method

Case study on maslow hierarchy

Case study on tangibles..assurance..responsivess wale 5 factors

Emi calculation 2 questions

Theory was easy

Sbu 1 question

Horizontally organized model

credit card bill (case study 5 qus.)

Three questions on rent capitalization method

Neft batches - 12 batches

depreciation numerical...

case study on gift card...

Fullform of USP - Unique Selling Proposition

case study on education loan for abroad...

Numericals from book about

Encumberence ratio

Tax saving on HL

Case studies under IBA education loan

Calculation of PV FV

Case study on reliability, tangibility, assurance (customer expectations)

Masala bond

Prepaid instrument

MSME act

Full form of USP

Who heads DRAT?

Sum on WDV and SLM

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

Case study on UPI

AEPS

REVERSE MORTGAGE FOR SENIOR CITIZENS[RLEAC]

problems on straight line

WDV method

Educational loan on foreign study

5q on empathy,responsiveness,assurance

2q on augmented, core product

Reverse mortgage equity linked case study

FSI construction cost based

UPI based

80c/24(b) ICT act 1961 based

Priority sector in different sector with perc of ANBC

PROGATE full form

BBPS component

fraud in operation risk

straight line method

written down value method

encumbrance value

Home loan

Service quality based case study

PPI based case study

Total compound interest applicable

EMI

Present value and future value

Full form of MMID ?

UPI transaction max limit ?

Mobile banking per day and per month limit?

Housing loan % of priority sector?



Margin for RML (Reverse Mortgage Loan) with annuity ?