Useful for IIBF Digital banking exam

IIBF Digital banking exam


Block Chain Technology : ICICI Bank is the first bank in the country and among the first few globally
to exchange and
authenticate remittance transaction messages as well as original international trade documents related to
purchase order, invoice,
shipping & insurance, among others, electronically on block chain in real time.
The usage of block chain technology simplifies the process and makes it almost instant—to only a few
minutes. Typically, this
process takes a few days. The block chain application co-created by ICICI Bank replicates the paperintensive
international trade
finance process as an electronic de centralised ledger, that gives all the participating entities including
banks the ability to access a
single source of information.
CODE NAME DIGITS
IFSC - Indian Financial System Code 11
MICR -Magnetic Ink Character Recognition 09
SWIFT-Society for worldwide interbank Financial Telecommunication ) 11
PAN- Permanent Account no. 10
UID /UAN – unique Identification Number 12
PIN – Postal Index Number 6
CIN-Cheque Identification Number 7
BIC ( BANK IDENTIFICATION NUMBER) 8
26. PREPAID PAYMENT INSTRUMENTS : Eligibility : Banks who comply with the eligibility criteria would
be permitted to issue all categories of pre-paid payment instruments. Non-Banking Financial Companies
(NBFCs) and other persons would be permitted to issue only semi-closed system payment instruments.
Capital requirements : Banks and Non-Banking Financial Companies which comply with the Capital
Adequacy requirements prescribed by Reserve Bank of India from time-to-time, shall be permitted to
issue pre-paid payment instruments. All other persons shall have a minimum paid-up capital of Rs 100
lakh and positive net owned funds. Safeguards against money laundering (KYC/AML/CFT) provisions -
The maximum value of any pre-paid payment instruments (where specific limits have not been prescribed
including the amount transferred) shall not exceed Rs 100,000/-.
Deployment of Money collected: Non-bank persons issuing payment instruments are required to maintain
their outstanding balance in an escrow account with any scheduled commercial bank subject to the
following conditions:- The amount so maintained shall be used only for making payments to the
participating merchant establishments. No interest is payable by the bank on such balances.
Validity: All pre-paid payment instruments issued in the country shall have a minimum validity period of six
months from the date of activation/issuance to the holder. The outstanding balance against any payment
instrument shall not be forfeited unless the holder is cautioned at least 15 days in advance as regards the
expiry of the validity of the payment instrument.
27.Money Transfer Service Scheme (MTSS) : The Reserve Bank has issued Master Directions relating
to Money Transfer Service Scheme (MTSS), which is a quick and easy way of transferring personal
remittances from abroad to beneficiaries in India.
MTSS can be used for inward personal remittances into India, such as, remittances towards family
maintenance and remittances favouring foreign tourists visiting India and not for outward remittance from
India.
The system envisages a tie-up between reputed money transfer companies abroad known as Overseas
Principals and agents in India known as Indian Agents who would disburse funds to beneficiaries in India
at ongoing exchange rates. The Indian Agents can in turn also appoint sub-agents to expand their
network. The Indian Agent is not allowed to remit any amount to the Overseas Principal. Under MTSS,
the remitters and the beneficiaries are individuals only.
The Reserve Bank of India may accord necessary permission (authorisation) to any person to act as an
Indian Agent under the Money Transfer Service Scheme. No person can handle the business of crossborder
money transfer to India in any capacity unless specifically permitted to do so by the RBI. To
become MTSS agent, min net owned funds Rs.50 lac. MTSS cap USD 2500 for individual remittance.
Max remittances 30 received by an individual in India in a calendar year. Min NW of overseas principal
USD 01 million, as per latest balance sheet.
28. IMPS
IMPS offer an instant,24*7 interbank electronic fund transfer service capable of processing person to
person, person to account and person to merchant remittances via mobile, internet and atms. It is a
multichannel and multidimensional platform that make the payments possible within fraction of seconds
with all the standards and integrity maintained for security required for even high worth transactions.
MMID - Mobile Money Identifier
Each MMID is a 7 digit code linked to a unique Mobile Number. Different MMIDs can be linked to same
Mobile Number.
Both Sender & Receiver have to register for Mobile Banking & get a unique ID called "MMID"
• Generation of MMID is a One-time process.
• Remitter (Sender) transfer funds to beneficiary (Receiver) using Mobile no. & 7digit MMID of
beneficiary.
IFS Code
11 digit alphanumeric number, available in the users Cheque book.
IMPS Fund transfer/Remittance options:
 Using Mobile number & MMID (P2P)
 Using Account number & IFS Code (P2A)
 Using Aadhaar number (ABRS)
 Using Mobile number & MMID (P2P)
 Customer Initiated - P2M(Push)
 Merchant Initiated - P2M(Pull)
Using Mobile number & MMID (P2P)
Presently, IMPS Person-to-Person (P2P) funds transfer requires the Remitter customer to make funds
transfer using Beneficiary Mobile Number and MMID. Both Remitter as well as Beneficiary needs to

register their mobile number with their respective bank account and get MMID, in order to send or receive
funds using IMPS.
Using Account number & IFS Code (P2A)
There may be cases where Remitter is enabled on Mobile Banking, but Beneficiary mobile number is not
registered with any bank account. In such cases, Remitter shall not be able to send money to the
Beneficiary using Mobile Number & MMID.
Hence on the merit of the feedback received from the banking community as well as to cater the above
mentioned need, the IMPS funds transfer has been made possible using Beneficiary account number and
IFS code as well, in addition to Beneficiary mobile number and MMID.
Customer Initiated - P2M(Push)
IMPS Merchant Payments (P2M - Person-to-merchant) service allows customers to make instant, 24*7,
interbank payments to merchants or enterprises via mobile phone. IMPS enables mobile banking users a
facility to make payment to merchants and enterprises, through various access channels such as Internet,
mobile Internet, IVR, SMS, USSD.
Sender enter details of merchant's (Customer initiated - Push)
• Merchant Mobile Number & MMID
• Amount to be transferred
• Payment reference (optional)
• Sender's M-PIN
Merchant Initiated - P2M(Pull)
IMPS Merchant Payments (P2M - Person-to-Merchant) service allows customers to make instant, 24*7,
interbank payments to merchants or enterprises via Mobile & Internet. IMPS enables mobile banking
users a facility to make payment to merchants and enterprises, through various access channels such as
Internet, mobile Internet, IVR, SMS, USSD.
Customer enter own details (Merchant Initiated - Pull)
• Customer own Mobile Number
• Customer own MMID
• OTP (generated from the Issuer Bank)

Quasi credit

Quasi credit (Non Fund based):

Quasi Credit signifies financing for trade, and it concerns both domestic and

international trade transactions. A trade transaction requires a seller of goods and

services as well as a buyer. Various intermediaries such as banks and financial

institutions can facilitate these transactions by financing the trade

Non Fund Business

Bank Guarantee: As a part of Banking Business, Bank Guarantee (BG) Limits are

sanctioned and guarantees are issued on behalf of our customers for various

purposes. Broadly, the BGs are classified into two categories:

i) Financial Guarantees are direct credit substitutes wherein a bank irrevocably

undertakes to guarantee the payment of a contractual financial obligation. These

guarantees essentially carry the same credit risk as a direct extension of credit i.e.

the risk of loss is directly linked to the creditworthiness of the counter-party against

whom a potential claim is acquired. Example – Guarantees in lieu of repayment of

financial securities/margin requirements of exchanges, Mobilization advance,

Guarantees towards revenue dues, taxes, duties in favour of tax/customs/port/excise

authorities, liquidity facilities for securitization transactions and deferred payment

guarantees.

ii) Performance Guarantees are essentially transaction-related contingencies that

involve an irrevocable undertaking to pay a third party in the event the counterparty

fails to fulfill or perform a contractual obligation. In such transactions, the risk of loss

depends on the event which need not necessarily be related to the creditworthiness

of the counterparty involved. Example – Bid bonds, performance bonds, export

performance guarantees, Guarantees in lieu of security deposits/EMD for

participating in tenders, Warranties, indemnities and standby letters of credit related

to particular transaction.

Though, BG facility is a Non-fund Facility, it is a firm commitment on the part of the

Bank to meet the obligation in case of invocation of BG. Hence, monitoring of Bank

Guarantee portfolio has attained utmost importance. The purpose of the guarantee is

to be examined and it is to be spelt out clearly if it is Performance Guarantee or

Financial Guarantee. Due diligence of client shall be done, regarding their experience

in that line of activity, their rating/grading by the departments, where they are

registered. In case of Performance Guarantees, banks shall exercise due caution to

satisfy that the customer has the necessary experience, capacity and means to

perform the obligations under the contract and is not likely to commit default. The

position of receivables and delays if any, are to be examined critically, to understand

payments position of that particular activity. The financial position of counter party,

type of Project, value of Project, likely date of completion of Project as per

agreement are also to be examined. The Maturity period, Security Position, Margin

etc. are also to be as per Policy prescriptions and are important to take a view on

charging BG Commissions



Branches shall use Model Form of Bank Guarantee Bond, while issuing Bank

Guarantees in favour of Central Govt. Departments/Public Sector Undertakings. Any

deviation is to be approved by Zonal Office. It is essential to have the information

relating to each contract/project, for which BG has been issued, to know the present

stage of work/project and to assess the risk of invocation and to exercise proper

control on the performance of the Borrower. It is to be ensured that the operating

accounts of borrowers enjoying BG facilities route all operations through our Bank

accounts. To safeguard the interest of the bank, Branches need to follow up with the

Borrowers and obtain information and analyze the same to notice the present stage

of work/project, position of Receivables, Litigations/Problems if any leading to

temporary cessation of work etc.

The Financial Indicators/Ratios as per Banks Loan Policy guidelines are to be

satisfactory. Banks are required to be arrived Gearing Ratio (Total outside

liabilities+proposed non-fund based limits / Tangible Networth - Non Current Assets)

of the client and ideally it should be below 10.

In case where the guarantees issued are not returned by the beneficiary even after

expiry of guarantee period, banks are required to reverse the entries by issuing

notice (if the beneficiary is Govt. Department 3 months and one month for others) to

avert additional provisioning. Banks should stop charging commission on expired

Bank Guarantees with effect from the date of expiry of the validity period even if the

original Bank Guarantee bond duly discharged is not received back.

Letter of Credit: A Letter of Credit is an arrangement by means of which a Bank

(Issuing Bank) acting at the request of a customer (Applicant), undertakes to pay to

a third party (Beneficiary) a predetermined amount by a given date according to

agreed stipulations and against presentation of stipulated documents. The

documentary Credit are akin to Bank Guarantees except that normally Bank

Guarantees are issued on behalf of Bank’s clients to cover situations of their non

performance whereas, documentary credits are issued on behalf of clients to cover

situation of performance. However, there are certain documentary credits like

standby Letter of Credit which are issued to cover the situations of non performance.

All documentary credits have to be issued by Banks subject to rules of Uniform

Customs and Practice for Documentary Credits (UCPDC). It is a set of standard rules

governing LCs and their implications and practical effects on handling credits in

various capacities must be possessed by all bankers. A documentary credit has the

seven parties viz., Applicant (Opener), Issuing Bank (Opening of LC Bank),

Beneficiary, Advising Bank (advises the credit to beneficiary), Confirming Bank –

Bank which adds guarantee to the credit opened by another Bank thereby

undertaking the responsibility of payment/negotiation/acceptance under the credit in

addition to Issuing Bank), Nominated Bank – Bank which is nominated by Issuing

Bank to pay/to accept draft or to negotiate, Reimbursing Bank – Bank which is

authorized by the Issuing Bank to pay to honour the reimbursement claim in

settlement of negotiation/acceptance/payment lodged with it by the paying /

negotiating or accepting Bank. The various types of LCs are as under:

i) Revocable Letter of Credit is a credit which can be revoked or cancelled or

amended by the Bank issuing the credit, without notice to the beneficiary. If a credit

does not indicate specifically it is a revocable credit the credit will be deemed as

irrevocable in terms of provisions of UCPDC terms.

ii) Irrevocable Letter of credit is a firm undertaking on the part of the Issuing

Bank and cannot be cancelled or amended without the consent of the parties to letter

of credit, particularly the beneficiary.

iii) Payment Credit is a sight credit which will be paid at sight basis against

presentation of requisite documents as per LC terms to the designated paying Bank.



iv) Deferred Payment Credit is a usance credit where payment will be made by

designated Bank on respective due dates determined in accordance with stipulations

of the credit without the drawing of drafts.

v) Acceptance Credit is similar to deferred credit except for the fact that in this

credit drawing of a usance draft is a must.

vi) Negotiation Credit can be a sight or a usance credit. A draft is usually drawn in

negotiation credit. Under this, the negotiation can be restricted to a specific Bank or

it may allow free negotiation whereby any Bank who is willing to negotiate can do so.

However, the responsibility of the issuing Bank is to pay and it cannot say that it is

of the negotiating Bank.

vii) Confirmed Letter of Credit is a letter of credit to which another Bank (Bank

other than Issuing Bank) has added its confirmation or guarantee. Under this, the

beneficiary will have the firm undertaking of not only the Bank issuing the LC, but

also of another Bank. Confirmation can be added only to irrevocable and not

revocable Credits.

the amount is revived or reinstated without requiring specific amendment to the

credit. The basic principle of a revolving credit is that after a drawing is made, the

credit reverts to its original amount for re-use by beneficiary. There are two types of

revolving credit viz., credit gets reinstated immediately after a drawing is made and

credit reverts to original amount only after it is confirmed by the Issuing Bank.

ix) Installment Credit calls for full value of goods to be shipped but stipulates that

the shipment be made in specific quantities at stated periods or intervals.

x) Transit Credit – When the issuing Bank has no correspondent relations in

beneficiary country the services of a Bank in third country would be utilized. This

type of LC may also be opened by small countries where credits may not be readily

acceptable in another country.

xi) Reimbursement Credit – Generally credits opened are denominated in the

currency of the applicant or beneficiary. But when a credit is opened in the currency

of a third country, it is referred to as reimbursement credit.

xii) Transferable Credit – Credit which can be transferred by the original

beneficiary in favour of second or several second beneficiaries. The purpose of these

credits is that the first beneficiary who is a middleman can earn his commission and

can hide the name of supplier.

xiii) Back to Back Credit/Countervailing credit – Under this the credit is opened

with security of another credit. Thus, it is basically a credit opened by middlemen in

favour of the actual manufacturer/supplier.

xiv) Red Clause Credit – It contains a clause providing for payment in advance for

purchasing raw materials, etc.

xv) Anticipatory Credit – Under this payment is made to beneficiary at preshipment

stage in anticipation of his actual shipment and submission of bills at a

future date. But if no presentation is made the recovery will be made from the

opening Bank.

xvi) Green Clause Credit is an extended version of Red Clause Credit in the sense

that it not only provides for advance towards purchase, processing and packaging

but also for warehousing & insurance charges. Generally money under this credit is

advanced after the goods are put in bonded warehouses etc., up to the period of

shipment.

Other concepts

i)Bill of Lading: It should be in complete set and be clean and should generally be

to order and blank endorsed. It must also specify that the goods have been shipped

on board and whether the freight is prepaid or is payable at destination. The name of

the opening bank and applicant should be indicated in the B/L.



iv) Deferred Payment Credit is a usance credit where payment will be made by

designated Bank on respective due dates determined in accordance with stipulations

of the credit without the drawing of drafts.

v) Acceptance Credit is similar to deferred credit except for the fact that in this

credit drawing of a usance draft is a must.

vi) Negotiation Credit can be a sight or a usance credit. A draft is usually drawn in

negotiation credit. Under this, the negotiation can be restricted to a specific Bank or

it may allow free negotiation whereby any Bank who is willing to negotiate can do so.

However, the responsibility of the issuing Bank is to pay and it cannot say that it is

of the negotiating Bank.

vii) Confirmed Letter of Credit is a letter of credit to which another Bank (Bank

other than Issuing Bank) has added its confirmation or guarantee. Under this, the

beneficiary will have the firm undertaking of not only the Bank issuing the LC, but

also of another Bank. Confirmation can be added only to irrevocable and not

revocable Credits.

the amount is revived or reinstated without requiring specific amendment to the

credit. The basic principle of a revolving credit is that after a drawing is made, the

credit reverts to its original amount for re-use by beneficiary. There are two types of

revolving credit viz., credit gets reinstated immediately after a drawing is made and

credit reverts to original amount only after it is confirmed by the Issuing Bank.

ix) Installment Credit calls for full value of goods to be shipped but stipulates that

the shipment be made in specific quantities at stated periods or intervals.

x) Transit Credit – When the issuing Bank has no correspondent relations in

beneficiary country the services of a Bank in third country would be utilized. This

type of LC may also be opened by small countries where credits may not be readily

acceptable in another country.

xi) Reimbursement Credit – Generally credits opened are denominated in the

currency of the applicant or beneficiary. But when a credit is opened in the currency

of a third country, it is referred to as reimbursement credit.

xii) Transferable Credit – Credit which can be transferred by the original

beneficiary in favour of second or several second beneficiaries. The purpose of these

credits is that the first beneficiary who is a middleman can earn his commission and

can hide the name of supplier.

xiii) Back to Back Credit/Countervailing credit – Under this the credit is opened

with security of another credit. Thus, it is basically a credit opened by middlemen in

favour of the actual manufacturer/supplier.

xiv) Red Clause Credit – It contains a clause providing for payment in advance for

purchasing raw materials, etc.

xv) Anticipatory Credit – Under this payment is made to beneficiary at preshipment

stage in anticipation of his actual shipment and submission of bills at a

future date. But if no presentation is made the recovery will be made from the

opening Bank.

xvi) Green Clause Credit is an extended version of Red Clause Credit in the sense

that it not only provides for advance towards purchase, processing and packaging

but also for warehousing & insurance charges. Generally money under this credit is

advanced after the goods are put in bonded warehouses etc., up to the period of

shipment.

Other concepts

i)Bill of Lading: It should be in complete set and be clean and should generally be

to order and blank endorsed. It must also specify that the goods have been shipped

on board and whether the freight is prepaid or is payable at destination. The name of

the opening bank and applicant should be indicated in the B/L.



ii) Airway Bill: Airway bills/Air Consignment notes should always be made out to

the order of Issuing Bank duly mentioning the name of the applicant.

iii)Insurance Policy or Certificate: Where the terms of sale are CIF the insurance

is to be arranged by the supplier and they are required to submit insurance policy

along with the documents.

iv) Invoice: Detailed invoices duly signed by the supplier made out in the name of

the applicant should be called for and the invoice should contain full description of

goods, quantity, price, terms of shipment, licence number and LC number and date.

v) Certificate of Origin: Certificate of origin of the goods is to be called for. Method

of payment is determined basing on the country of origin.

vi) Inspection Certificate: Inspection certificate is to be called for from an

independent inspecting agency (name should be stipulated) to ensure quality and

quantity of goods. Inspection certificate from the supplier is not acceptable

Co-acceptance Facilities : RBI Guidelines, Co-acceptance of

Bills covering supply of Goods & Machinery

Bills co-acceptance Co-acceptance is a means of non-fund based import finance

whereby a Bill of Exchange drawn by an exporter on the importer is co-accepted by a

Bank. By co-accepting the Bill of Exchange, the Bank undertakes to make payment to

the exporter even if the importer fails to make payment on due date

RBI guidelines on co-acceptances:

In the light of the above, banks should keep in view the following safeguards:

(i) While sanctioning co-acceptance limits to their customers, the need therefor should

be ascertained, and such limits should be extended only to those customers who enjoy

other limits with the bank.

(ii) Only genuine trade bills should be co-accepted and the banks should ensure that the

goods covered by bills co-accepted are actually received in the stock accounts of the

borrowers.

(iii) The valuation of the goods as mentioned in the accompanying invoice should be

verified to see that there is no over-valuation of stocks.

(iv) The banks should not extend their co-acceptance to house bills/ accommodation

bills drawn by group concerns on one another.

(v) The banks discounting such bills, co-accepted by other banks, should also ensure

that the bills are not accommodation bills and that the co-accepting bank has the

capacity to redeem the obligation in case of need.

(vi) Bank-wise limits should be fixed, taking into consideration the size of each bank for

discounting bills co-accepted by other banks, and the relative powers of the officials of

the other banks should be got registered with the discounting banks.

(vii) Care should be taken to see that the co-acceptance liability of any bank is not

disproportionate to its known resources position.

(viii) A system of obtaining periodical confirmation of the liability of co-accepting banks

in regard to the outstanding bills should be introduced.

(ix) Proper records of the bills co-accepted for each customer should be maintained, so

that the commitments for each customer and the total commitments at a branch can be

readily ascertained, and these should be scrutinised by Internal Inspectors and

commented upon in their reports.

(x) It is also desirable for the discounting bank to advise the Head Office/ Controlling

Office of the bank, which has co-accepted the bills, whenever such transactions appear



to be disproportionate or large.

(xi) Proper periodical returns may be prescribed so that the Branch Managers report

such co-acceptance commitments entered into by them to the Controlling Offices.

(xii) Such returns should also reveal the position of bills that have become overdue, and

which the bank had to meet under the co-acceptance obligation. This will enable the

Controlling Offices to monitor such co-acceptances furnished by the branches and take

suitable action in time, in difficult cases.

(xiii) Co-acceptances in respect of bills for Rs.10,000/- and above should be signed by

two officials jointly, deviation being allowed only in exceptional cases, e.g. nonavailability

of two officials at a branch.

(xiv) Before discounting/ purchasing bills co-accepted by other banks for Rs. 2 lakh and

above from a single party, the bank should obtain written confirmation of the concerned

Controlling (Regional/ Divisional/ Zonal) Office of the accepting bank and a record of the

same should be kept.

(xv) When the value of the total bills discounted/ purchased (which have been coaccepted

by other banks) exceeds Rs. 20 lakh for a single borrower/ group of

borrowers, prior approval of the Head

Digital banking white and brown label ATM

White Label ATM

White Label ATMs are purely managed by third party service providers and have their label. These are branded non
bank ATM machines. Cash handling, management and logistics are provided by third party. Debit cards of all banks can be
operated through these machines. The role of the concerned bank is only limited to provide account information and back
end money transfers to the third parties managing these ATM machines. This initiative will enable the excluded segments
to avail ATM services as at present majority ATMs are confined to Urban/Metro areas only.
However, service provider levy charges which are to be either bear by the Bank or the customer. RBI has allowed
white label ATM's in India to have more penetration of ATM machines. Tata Communications Payment Solutions has
become the first company to launch this service in India under the brand name "Indicash". It has a tie up with
majority commercial banks and now you will soon see branded non bank third party white label ATM machines in
your vicinity.

All certificate exams PDFs.

All certificate exams PDFs.

Read IIBF Prescribed book only.. These all are extra information only

Download Link

https://iibfadda.blogspot.com/2018/08/all-iibf-certifications-pdfs-in-single.html

All the best

20.10.2018 cyber crime question recollected

20.10.2018 cyber crime question
1.cyber crime definition
2.3 factor pressure,opportunity,rationalisation
3.cybernetics,kybernetes,steersman,governor,cyberpunk----given 4 option
4.honey pot
5.1st worm
6.denial of service
7.buffer overflow
8.shoulder surfing
9.access control
10.script kiddles
11.john doe order
12.nigrria419
13cyber wefare
14 email spoofing
15 cyber stalking
16domain name .in represent
17.Satyam infoway ltd vs siffynet supreme court
18cyber warfare
19phishing
20zeus
21.non repudiation
22 tailgating

23.trapdoor
24.captcha.

25 .blue hat hacker
26phreaking
27. Ethical hacking
28.anonymous
29bar code matrix code
30.RFID
31.data manipulation and data definition language
32.symmetic encryption
33. Encryption and decryption
34.locard exchange principle
35.c-Dac
36.payment getway
37.payment and settlements system 2007
38 acquiring bank
39 brute force attack
40.man in the middle attack
41session hijacking
42.digital wallet
43OLTP
44 Ucpdc
45.EMV card
46.netra drdo
47CBI Specialized structure
48.electonic signature
49.DSCI set ip NASSCOM
50.US Initiative -cyber security information sharing act
51.it act andit amendment act.
52.Pki
53 .authenticity
54.maximum value that can be stored in a prepaid card 50000
55. SWIFT

International Trade finance recollected questions::

Trade finance recollected questions::

2 marks qstn from ecgc,export promotion capital goods scheme. exim ,lc, eefc, urr725 ,pcfc
1 marks from forfating, factoring, pre and post shipment ,Fedai dutydrawback urc522 heckscher ohlin theory buyers and suppliers credit forward contract , lc., channel financing merchanting trade as well these topics in .5 marks qstn bid bondand performance guarantee currency and credit risk , wharfage documentry credit time period related qstn , status holder starhouse . SEIS , liberalized remittance . NEIA (national export insurance account), ssp, src. Scp related to ECIE-ST red clause

Digital banking recollected JULY 2018 exam

Digital banking recollected

Aeps

Nach

Upi

Virtual keyboard to safegaurd against keylogger

4 questions on process of chargeback

Nfc technology and RFID

Approx 8-10 question on security of POS terminals

2 que on MDR

What is cash withdrawal through pos called

Many questions were there from BC

, POS,

off us,

on us transactions,

pharming attack,

phishing attack,

ATM skimming,

business risk,

memory scrapping,

jackpotting,

Financial inclusion,

Dispute Management System,

CTS,

Digital marketing,

internet banking 2FA

, AEPS,

Keylogger Virtual keyboard,

Pinterest ,

Graffiti,

OOH,

brown level ATM,

ekyc ,

FI is backed by

wat is Graffiti.

wat is CRM customer Relationship Management. one questions on fraud in ATM card and Internet banking. wat is RTGS and Next generation RTGS

wat is Rupay Paysecure Solution. Benefits of Rupay Card. wat is NACH and it's Role.

ABPS and NACH diffrence. .wat is ASA and KSA. .one question on NFS and EKYC. Offus and OnUs transaction Diffrence. RTGS and NgTGS.

NG rtgs works on ISO 20022. wat is CCIL clearing Corporation of India it's Role and Functions. wat is Diffrence between DVP-lll (Delivery vs payment and Payment Vs Delivey) System..

Diffrence between Compliance and convenience. masquerading and Cyber mugging.

wat is Jeckpotting. wat is MILTDOWN and Spectrame. One question on Telebanking. MMID and MPlpin wat Digit MMID 4 Digit

wat is giftcard prepaid card and store value card diffrences. .credit and charge card diffrences. .questions on magnetic strip card EMV chipbased card. questuons on what Document requires for Representment in prearbitration process...... operating system hardening is a Application server risk. diffrence between Enduser risk and application server risk. wat is mobile device risk. wat is Identity Theft. Difference between Basic Phishing and Spear phishing. . ......

Digital banking Recollected Questions on 1st July 2018 paper.... 1.cyber mugging 2.Miltdown & Spectrate. 3.what is Jeckpotting in ATM. 4.NPCI.... 5.CCIL one question. 6 .one question on CIA confidentiality Availability and Integrity. 7 .one separete question on only Integrity. 8.what is Plastic card. 9.one question on prepaid card. 10.wat is single purpose and multy purpose Cards. 11.diffrence between credit and charge card. 12.wat are benefit for using virtual key board. 13.diffrence between Emv chip card and Magnetic strip cards. 14.diffrence between NFC near feild communication and RFID Radio frequency Identifications...... 15.diffrence between openscheme (4th Party and 3rd party close scheme.....

Digital banking Recollected Questions on 1 July 2018............. 16.one Questions on MDR. 17.diffrence between transaction processing clearing and settlement. 18.one separate question on CTS and Clearing. 19.wat is phishing Pharming and Cyber mugging. 20.one question on Aadhar bridge system for giving Subsidy. 21 which is not a 24*7 system IMPS NPCI UPI or USSD. 22.one question on what is SFMS. 23.diffrence between In Us and Off Is ATM 24.wat is difference between IMPS and IMT. 25.diffrence between CDM ATM and POS

1 July Digital Banking Paper Recollected Questions. 26.diffrence between white and Brown level ATM. 27.diiffrence between Clearing and Settlement process. 28.wat is keystroke Logging and benefits of vitual key board. 29.wat is difference between business Declines and technical Declines. 30.difference between authorization and Settlement process. 31.wat is limit of chargebeck-90 days. 32.one question on prearbiration process and dispute management Collette. 33.one question on smshing and Phishing attack....... 34 diffrence between malware and Torzan. 35.wat is *99*99# and it's benefit. 36 .mobile wallets are prepaid or postpaid. 37.one question on OTP and TWO factor Authonthication process. 38.What is end-user risk. 39.wat is mobile device risk. 40 one question on Spearphishing. 41 .wat is query service on Aadhar Mapper.42.one question on firewell and intrusions detection system. 43.diiffrence between encryption and Decryption. 44.diffrence between GPRS and PSTN POS 45.diffrence between portable and Pooled terminal. 46.one question only on Mobile POS. 47.wat is EKYC and it's benefits. 48.wat is Terminal Management System. 49.wat is Mural-Advertising. 50.wat is OOH out of home.....

Recollected Questions on Digital Banking Paper 1 July. .51.wat is Graffiti. 52.wat is CRM customer Relationship Management. 53.one questions on fraud in ATM card and Internet banking. 54.wat is RTGS and Next generation RTGS 55.wat is Rupay Paysecure Solution. 56.Benefits of Rupay Card. 57.wat is NACH and it's Role. 58.ABPS and NACH diffrence. 59.wat is ASA and KSA. 60.one question on NFS and EKYC. 61. Offus and OnUs transaction Diffrence. 62.RTGS and NgTGS. 63.NG rtgs works on ISO 20022. 64.wat is CCIL clearing Corporation of India it's Role and Functions. 65 .wat is Diffrence between DVP-lll (Delivery vs payment and Payment Vs Delivey) System..

Recollected Questions. 66.diffrence between Compliance and Convenience. 67.masquerading and Cyber mugging. 68.wat is Jeckpotting. 69.wat is MILTDOWN and Spectrame. 70.one question on Telebanking. 71.MMID and MPlpin wat Digit MMID 4 Digit 72.wat is giftcard prepaid card and store value card diffrences. 73.credit and charge card diffrences. 74.questions on magnetic strip card EMV chipbased card. 75.questuons on what Document requires for Representment in prearbitration process...... 76.operating system hardening is a Application server risk. 77.diffrence between Enduser risk and application server risk. 78.wat is mobile device risk. 79.wat is Identity Theft. 80.Difference between Basic Phishing and Spear phishing. . ......

Q81.what is SSL full form and it's signal turns into which colour green blue Aur Red. Q82.one Drawback of Smishing. Q.83.the process of remain hidden Online is called..... Q.84.what is Back and Access.... Q 86.one question on Cash Advance. Q87.wat is diffrence between VOID and Refund. Q 88.SFMS. Q 89.Encoding deciding Difference.. Q90..wat is Rootkit. Q 91.Social engineering. Q 92.diffrence between IDS and IPS. Q.93.OTP and Two fector Authonthication. Q.94.KeyStroke Loggers

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International Finance Transaction exposure

International Finance - Transaction Exposure

There are various techniques available for managing transactional exposure. The objective here is to shun the transactions from exchange rate risks. In this chapter, we will discuss the four major techniques that can be used to hedge transactional exposure. In addition, we will also discuss some operational techniques to manage transactional exposure.



Financial Techniques to Manage Transaction Exposure

The main feature of a transaction exposure is the ease of identifying its size. Additionally, it has a well-defined time interval associated with it that makes it extremely suitable for hedging with financial instruments.



The most common methods for hedging transaction exposures are −



Forward Contracts − If a firm has to pay (receive) some fixed amount of foreign currency in the future (a date), it can obtain a contract now that denotes a price by which it can buy (sell) the foreign currency in the future (the date). This removes the uncertainty of future home currency value of the liability (asset) into a certain value.



Futures Contracts − These are similar to forward contracts in function. Futures contracts are usually exchange traded and they have standardized and limited contract sizes, maturity dates, initial collateral, and several other features. In general, it is not possible to exactly offset the position to fully eliminate the exposure.



Money Market Hedge − Also called as synthetic forward contract, this method uses the fact that the forward price must be equal to the current spot exchange rate multiplied by the ratio of the given currencies' riskless returns. It is also a form of financing the foreign currency transaction. It converts the obligation to a domestic-currency payable and removes all exchange risks.



Options − A foreign currency option is a contract that has an upfront fee, and offers the owner the right, but not an obligation, to trade currencies in a specified quantity, price, and time period.



Note − The major difference between an option and the hedging techniques mentioned above is that an option usually has a nonlinear payoff profile. They permit the removal of downside risk without having to cut off the profit from upside risk.



The decision of choosing one among these different financial techniques should be based on the costs and the penultimate domestic currency cash flows (which is appropriately adjusted for the time value) based upon the prices available to the firm.



Transaction Hedging Under Uncertainty

Uncertainty about either the timing or the existence of an exposure does not provide a valid argument against hedging.



Uncertainty about transaction date

Lots of corporate treasurers promise to engage themselves to an early protection of the foreign-currency cash flow. The key reason is that, even if they are sure that a foreign currency transaction will occur, they are not quite sure what the exact date of the transaction will be. There may be a possible mismatch of maturities of transaction and hedge. Using the mechanism of rolling or early unwinding, financial contracts create the probability of adjusting the maturity on a future date, when appropriate information becomes available.



Uncertainty about existence of exposure

Uncertainty about existence of exposure arises when there is an uncertainty in submitting bids with prices fixed in foreign currency for future contracts. The firm will pay or receive foreign currency when a bid is accepted, which will have denominated cash flows. It is a kind of contingent transaction exposure. In these cases, an option is ideally suited.



Under this kind of uncertainty, there are four possible outcomes. The following table provides a summary of the effective proceeds to the firm per unit of option contract which is equal to the net cash flows of the assignment.



Operational Techniques for Managing Transaction Exposure

Operational strategies having the virtue of offsetting existing foreign currency exposure can also mitigate transaction exposure. These strategies include −



Risk Shifting − The most obvious way is to not have any exposure. By invoicing all parts of the transactions in the home currency, the firm can avoid transaction exposure completely. However, it is not possible in all cases.



Currency risk sharing − The two parties can share the transaction risk. As the short-term transaction exposure is nearly a zero sum game, one party loses and the other party gains%



Leading and Lagging − It involves playing with the time of the foreign currency cash flows. When the foreign currency (in which the nominal contract is denominated) is appreciating, pay off the liabilities early and collect the receivables later. The first is known as leading and the latter is called lagging.



Reinvoicing Centers − A reinvoicing center is a third-party corporate subsidiary that uses to manage one location for all transaction exposure from intra-company trade. In a reinvoicing center, the transactions are carried out in the domestic currency, and hence, the reinvoicing center suffers from all the transaction exposure.



Reinvoicing centers have three main advantages −



The centralized management gains of transaction exposures remain within company sales.



Foreign currency prices can be adjusted in advance to assist foreign affiliates budgeting processes and improve intra affiliate cash flows, as intra-company accounts use domestic currency.



Reinvoicing centers (offshore, third country) qualify for local non-resident status and gain from the offered tax and currency market benefits.


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