Today MSME,cyber fraud & Bcsbi recollected questions 01.09.2018

Today MSME,cyber fraud & Bcsbi recollected questions 01.09.2018
Msme recollected questions
1.09.2018 msme exam recollect question
1WTO established
2. Stage -settings up small scale industry
3.regulated by registration formalities limited liability partnership
4.no.of directors ,paid up capital in public ltd company
5.composite loan 100 cr.
6.51%women entrepreneur enterprises
7.Iso 9000/iso 14001 reimbursement 75000
8.credit guarantee scheme speci category 80%
9.india credit rating agency
10.Bcsbi objective
11.loan application 5lac to 25 lac within 4 weeks
12.federation of indian women entrepreneur head quarter hyderabad
13. Hybrid capital debt +equity
14 venture capital angle fund hybrid capital related 4 option
15.composie loan
16 non fund vase guarantee defered payment guarantee
17performance guarantee
18.red clause lc and back to back lc
19.managerial appraisal character, captivity , capital, collateral
20.technical appraisal
21low break even point means
22.ratio analysis current ratio and debt enquity retio related questions
23 debt equity ratio formula
24.scope of employment in the msme sector-computer software, telecommunications, broadcast
25.msme DO facilities
26.technology upgradation ministry of textile
27business development provider
28features of cluster
29knitware ludhiana
30stage of development initial, growth, maturity., extinction phase
31 sick unites
32internsl and external cause same in sickness
33.handholding stage
34debt restructuring
35wilful defaulter
36write off loss account
37.OTS
38R3HABIILITATION PACKAGE OF A POTENTIAL VIABLE
39 MUDRA bank
40pradan mantri mudra yojna
41.relationship banking
42 customer relations managment comprehensive approach
44service 4 character
45.mdme project specific issue
46 Cambridge network


Ratio analysis
DER,DSCR,CR etc.
Msme schemes
Balance sheet analysis
Msmed act 2006
Investments in mfg and service sector except above questions all other questions are common sense so take relex for exam and best of luck all of us will definitely succeed.

Cyber fraud management ::

Phishing
IP spoofing
Controls
Cyber Smearing Stalking
Cyber Crime
E Governence
E KYC
IT Act
IT AA
Locard Principle
Fraud Triangle
Zeus
Masquerading
Human Traits
Module 4 several questions
ISO IEC

Bcsbi ::

1.COLLA FREE LOAN UPTO WHICH LIMIT IN MSME
2. FEE IN RESPECT OF DISTT LEVEL CASE
3. QUESTIONS RELATED TO CHQ DEPOSIT
4. CHQ COLLECTION
5. NI ACT

External Commercial Borrowings (ECB) framework FAQs

 External Commercial Borrowings (ECB) framework FAQs

1. Where can one get the details of extant ECB framework?

The interested party may refer to Master Direction No.5 dated January 1, 2016, as amended from time to time, on ‘External Commercial Borrowings, Trade Credit, Borrowing and Lending in Foreign Currency by Authorised Dealers and Persons other than Authorised Dealers’ (https://www.rbi.org.in/Scripts/BS_ViewMasDirections.aspx?id=10204) for guidance on the extant framework on ECB.

2. Are there other documents which the interested party may refer to know more about the extant ECB framework?

The interested party may also refer to A.P. (DIR Series) Circulars at https://www.rbi.org.in/scripts/Fema.aspx pertaining to External Commercial Borrowings.

3. From when did the extant ECB framework become applicable?

The extant ECB framework announced through A.P. (DIR Series) Circular No. 32 dated November 30, 2015 became applicable from the date of publication of relative regulations in the Gazette of India, i.e., December 2, 2015.

4. What if a company had executed ECB agreement prior to December 2, 2015 and availability period is beyond March 31, 2016/ commencement of drawdown is after March 31, 2016?

Entities raising ECB under previous ECB framework can raise the said loans by March 31, 2016 provided the agreement in respect of the loan is already signed by December 1, 2015. Further, eligible entities can drawdown the ECB proceeds beyond the availability period of March 31, 2016 provided such ECBs are contracted on or before December 1, 2015 and such agreements provide availability period of ECB to be beyond March 31, 2016. In other words, all ECB loan agreements entered into prior to the date of the revised ECB framework coming into effect from December 02, 2015 may continue with the disbursement schedules post March 31, 2016, as already provided in the loan agreements without (requiring) further consent from the Reserve Bank or any AD bank.

5. Is the extant ECB framework different from the framework for issuance of Rupee denominated bonds overseas?

Yes, extant ECB framework is different from the framework for issuance of Rupee denominated bonds overseas. To know more about the framework of issuance of Rupee denominated bonds overseas, interested party may refer to aforementioned Master Direction. Both these frameworks (ECB framework and framework for issuance of Rupee denominated bonds overseas) run separately/concurrently.

6. What are the various types of ECB?

ECBs can be raised as:

1. Loans, eg., bank loans, loans from equity holder, etc.

2. Capital market instruments, e.g.,

floating rate notes / fixed rate bonds / securitised instruments

non-convertible, optionally convertible or partially convertible preference shares

FCCB*

FCEB*

3. Buyers’ credit / suppliers’ credit

4. Financial lease

* A foreign currency convertible bond (FCCB) is a type of corporate bond issued by an Indian company in an overseas market in a currency different from that of the issuer. Investors have the option of redeeming their investment on maturity or converting the bonds into equity any time during the currency of the bond. The repayment of the principal is in the currency in which the money is raised. In case of a foreign currency exchangeable bond (FCEB), investors have the option of converting the bonds into equity of the offered company. The company issuing FCEB shall be part of the promoter group of the offered company and shall hold the equity shares being offered at the time of issuance of FCEB.

7. Do FCNR (B) loans come under the ECB framework?

No, foreign currency loans given domestically by Authorised Dealer Category I banks out of the proceeds of FCNR (B) deposits do not come under the ECB framework.

8. Does a company, incorporated in India, raising Rupee denominated loan from an NRI / PIO by way of Non-Convertible Debentures (NCDs) through a public offer get covered under the ECB framework?

No, NRI/PIO giving loan in Rupees to resident company by way of Non-Convertible Debentures (NCDs) through a public offer is not covered under the ECB framework. It is covered under Foreign Exchange Management (Borrowing and Lending in Rupees) Regulations, 2000 issued vide Notification No. FEMA 4/2000-RB dated May 3, 2000 as amended from time to time (as per the provisions contained in these Regulations, a company incorporated in India is permitted to raise Rupee denominated loan from an NRI / PIO only by way of issuance of NCDs through a public offer and is subject to other provisions contained in these Regulations).

9. What precautions have to be taken before raising loan from overseas?

Interested party may note that borrowings from overseas have to be in compliance with the applicable ECB guidelines / provisions contained in the Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000 issued vide Notification No. FEMA 3/2000-RB dated May 3, 2000 as amended from time to time, as applicable / applicable provisions contained in the Foreign Exchange Management (Borrowing and Lending in Rupees) Regulations, 2000 issued vide Notification No. FEMA 4/2000-RB dated May 3, 2000 as amended from time to time.

10. Whose responsibility is to ensure compliance with ECB guidelines?

The primary responsibility for ensuring that the borrowing is in compliance with the applicable ECB guidelines is that of the borrower concerned. Any contravention of the applicable provisions of ECB guidelines will invite penal action under the FEMA. Same would be the case for devising a structure which bypasses / circumvents ECB guidelines in any manner and / or raising borrowings in any other manner which is not permitted / disguising borrowing under the wrap of other kind of transactions (like raising export advance(s) without actual exports or raising of export advance by circumventing ECB guidelines by creating any structure overseas or otherwise, etc.) and / or contravening provisions of Regulations mentioned in question 9 above.

B. Eligibility for raising ECB

11. Where can one get more details regarding eligibility of an entity to raise ECB?

Interested party may please refer to the aforementioned Master Direction.

12. Is a Limited Liability Partnership (LLP) or Partnership firm or Proprietary concern eligible to raise ECB?

No, entities which are not covered within the provisions contained in Master Direction stated above [like companies doing trading business (whether online or otherwise), companies involve in activities like tourism, beauty parlour / beauty clinics, entertainment business, retail sales, e-commerce companies, etc., on any other activity not covered within these provisions] are not eligible to raise ECB.

13. Whether all companies operating in software sector space eligible to raise ECB?

No, only those companies in software sector space who are into development of software are eligible to raise ECB. Companies who are into designing and engineering consultancy, servicing of third-party software, providing ancillary IT related services, ITeS, etc., are not considered as software development companies for ECB purposes.

14. What does the term infrastructure sector mean for the purpose of ECB?

For the purpose of raising ECB, Infrastructure Sector has the same meaning as given in the Harmonised Master List of Infrastructure sub-sectors approved by Government of India vide Notification F. No. 13/06/2009-INF as amended / updated from time to time. Further, for the purpose of ECB, Exploration, Mining and Refinery sectors are also deemed as in the infrastructure sector. It is also clarified that addition of any sector or sub-sector in the Harmonized Master List by the Government of India automatically entitles such sector/sub-sector to raise ECB as ‘infrastructure’.

15. What are ‘companies supporting infrastructure’?

Companies who help in operations or building of infrastructure as defined in Harmonised Master List of Infrastructure sub-sectors issued by Ministry of Finance as mentioned in the question 14 above will be considered companies supporting infrastructure.

16. Whether educational institutes/ universities/ deemed universities are eligible to raise ECB?

If the educational institute/university/ deemed university is registered as a company under the Companies Act 1956/2013, it can raise ECB as a part of infrastructure sub-sector. ECB guidelines as applicable for infrastructure companies would be applicable for such ECBs.

17. What is the provision for individual limit regarding Housing Finance Companies (HFCs) for ECBs under the auto route?

Individual limit under auto route as applicable to NBFC-IFCs/AFCs, i.e., USD 750 million per financial year under any of the three tracks, will be now available to HFCs also.

18. Whether the restrictions in respect of the eligibility of borrowing entities also applicable to Startups?

No, any entity which is recognised as a Startup by the Central Government as on date of raising ECB, would be eligible to raise ECB, irrespective of its business activities,.

19. Whether companies engaged in the business of Maintenance, Repair and Overhaul and freight forwarding who have been made eligible borrowers should be from airline or shipping sector only or no such restrictions apply?

Companies engaged in the business of Maintenance, Repair and Overhaul and freight forwarding eligible to raise ECBs should be from airline or shipping sector only.

C. Currency of ECB

20. What are the requirements in respect of currencies of ECB?

ECB can be raised in Indian Rupees (INR) and / or any convertible currency. Any entity raising INR denominated ECB is not permitted to convert the liability arising out of this ECB into foreign currency liability in any manner or assuming foreign currency risk is any manner by either entering into a derivative contract or otherwise.

D. Recognised Lenders/ Investors

21. What do you mean by prudentially regulated financial entities?

By prudentially regulated financial entities, we mean that the overseas entity is bound by prudential norms / regulations issued by the sector regulator(s) of the host country. This can be explained by giving the example of non-banking financial companies (NBFCs) in India. These NBFCs, in order to operate in non-banking financial sector space in India are issued Certificate of Registration by RBI (sector regulator). Further, after registration these companies are subject to supervision by RBI. Similar prudential norms / regulations should be applicable to the overseas financial entity by the respective overseas sector regulator in order for such entity qualifying as a recognised lender under prudentially regulated financial entity category.

22. A foreign equity holder holding minimum 25% direct equity holding in the borrowing entity or minimum indirect equity holding of 51% in the borrowing entity is a recognised lender. Can the foreign equity holder dispose-off the holding once ECB is contracted?

No, all ECB guidelines including those related to minimum equity holding, are to be fulfilled during the whole tenure of the ECB and not only at the time of contracting of ECB.

23. Whether ECB liability: equity ratio of 7:1 is applicable for raising ECB from both direct and indirect equity holders under automatic route?

No, it is only applicable to direct equity holders.

24. Whether the equity in ECB liability to equity ratio includes non-convertible preference capital?

No, however, compulsorily and mandatorily convertible debentures (convertible within a specified time) and compulsorily and mandatorily convertible preference shares (convertible within a specified time) can be included for calculation of the equity in ECB liability to equity ratio.

E. Average Maturity Period/ Amount

25. How is average maturity period calculated?

You may refer to https://rbidocs.rbi.org.in/rdocs/Content/PDFs/12EC160712_A6.pdf for illustration purposes.

26. Can door-to-door maturity be used in lieu of average maturity?

No.

27. For an ECB raised under Track I for general corporate purpose, can repayment of principal of ECB start before the completion of 5 years?

Yes, however, the ECB should have minimum average maturity period of 5 years.

28. Should the proposed ECB be added to all outstanding ECBs for the purpose of ECB liability to equity ratio?

Yes, apart from ECB raised for refinancing where the proposed ECB amount may not be taken into account to avoid double counting.

29. Whether ECB liability includes non-convertible / partially convertible preference shares?

Borrowing from a person resident outside India by way of issue of preference shares on or after April 30, 2007, other than those which are fully and mandatorily convertible into equity within a specified time, as well as borrowing from a person resident outside India by way of issue of debentures on or after June 07, 2007, other than those which are fully and mandatorily convertible into equity within a specified time, would be treated as ECB and has to conform to ECB guidelines. Thus, the borrowing raised through such instruments after aforesaid dates would be considered for calculation of ECB liability.

30. Should the proposed ECB be added to all outstanding ECBs for arriving at the individual limit for raising of ECBs?

The individual limit for raising ECB under the automatic route will take into account all outstanding ECBs including the proposed one. However, refinancing of ECB amount will not be considered for arriving at individual limit per financial year.

F. All-in-cost

31. Can an eligible borrower simultaneously raise ECBs under Track I and Track II?

Yes, as long as the ECBs are in compliance with the ECB guidelines for the respective tracks as per RBI guidelines.

32. Does all-in-cost ceiling apply on a continuous basis or can be calculated even on average basis?

All-in-cost should be within the applicable ceiling at all times, for eg., giving interest breaching the ceiling in first year and much lower in second year so as to comply on an average, is not permitted.

G. End-uses

33. Can ECB be raised under Track I and Track III for general corporate purpose (including working capital)? What will be its minimum average maturity period?

ECB can be raised under Track I and Track III for general corporate purpose (including working capital) only from foreign equity holders. The minimum average maturity period will be 5 years, irrespective of amount borrowed.

34. Can ECB be raised under Track II for general corporate purpose (including working capital)? What will be its minimum average maturity period?

Yes, ECB can be raised under Track II for general corporate purpose (including working capital). The minimum average maturity period will be 10 years.

35. Can ECB be used for real estate activities?

No. All activities under real estate are not permitted as eligible end use for raising ECB.

36. Is import of technical know-how which is not part of a capital good an eligible end use for the purpose of ECB?

No.

37. Is the reimbursement of expenditure incurred in the past a permissible end-use under the ECB framework?

No. The reimbursement of expenditure incurred in the past is not a permissible end-use under the ECB framework.

38. Can proceeds of ECB, raised under previous framework be used for end uses permitted under the revised framework?

No. ECB raised under the previous framework can be used for end uses permitted under the old framework only.

39. Can ECB be availed for repayment of domestic INR loan?

Yes, however, for Tracks I and III, it is only permitted if ECB is raised from foreign equity holder.

40. Can ECB be availed for making equity investment domestically or buying goodwill?

No. Equity investment either directly or indirectly (through purchase of goodwill) is not permitted.

41. Can ECB be availed for making contribution in LLP?

No, it is not permitted under any track.

42. Can an eligible borrower raise fresh ECB under Track II for repayment of existing Rupee denominated ECB?

Refinancing of Rupee denominated ECB with Foreign Currency denominated ECB under Track II is not permitted.

43. Whether ECB proceeds can be used by eligible resident borrowers for investment in their overseas JV/WOS as per the extant overseas investment regulations?

ECB proceeds can be utilized for overseas investment as permitted under the overseas investment guidelines.

H. Refinancing of ECB

44. Can an ECB raised under the erstwhile USD 10 billion scheme be refinanced under the revised ECB framework?

No, the repayment of ECB raised under USD 10 billion scheme is to be undertaken through forex revenues.

45. Can ECB raised under the earlier ECB framework be refinanced/ partially refinanced through an ECB raised under extant ECB framework?

Yes, provided that company continues to be eligible to raise ECB under the extant ECB framework, all-in-cost is lower of the all-in-cost of existing ECB or as applicable to the respective track under the extant framework and residual maturity is not reduced.

46. Can refinancing/ partial refinancing be undertaken under auto route even for ECBs raised under approval route, subject to compliance with guidelines?

Yes.

47. Can ECB under revised ECB framework be raised with average maturity period of 5 years (under Track I) to refinance ECB raised under previous ECB framework?

Yes, however, the all-in-cost should be lower of the all-in-cost of existing ECB or 6 month LIBOR+450 bps per annum. Further, the entity should be eligible to raise ECB under Track I and residual maturity should not reduce.

48. Is 100 per cent mandatory hedging applicable to infrastructure space entities for ECBs being refinanced, which were raised under the earlier ECB framework?

No. Such ECBs will be exempt from the mandatory hedging clause, however, they are encouraged to undertake hedging for the open currency risk exposure.

49. Does the condition of refinancing of ECBs at lower all-in-cost also apply to Track III ECBs?

Yes, if the original ECB raised under Track III is to be refinanced with another ECB under Track III. However, when refinancing of existing foreign currency denominated ECB (Track I/ II) is done by raising Rupee denominated ECB (Track III), the condition regarding lower all-in-cost of the fresh ECB will not apply.

I. Security/ Guarantee

50. Is corporate guarantee from overseas permitted for ECB?

Yes, but only in cases where the overseas guarantor fulfills the criteria of recognised lender under extant ECB guidelines. Fees payable, if any, for this guarantee will form part of All-in-cost of the ECB.

51. Can overseas bank give guarantee for ECB?

An overseas bank (not overseas branches / subsidiaries of Indian bank) is permitted to give guarantee from overseas for ECB, provided it is recognised as ECB lender as per extant ECB guidelines. It may be noted that guarantee fee will form part of all-in-cost of the ECB.

J. Hedging under ECB Framework

52. What is the meaning of 100 per cent hedging of ECB wherever it is so mandated by the RBI?

Wherever 100 percent hedging has been mandated by the RBI, ECB borrowers shall keep their ECB exposure hedged 100 per cent at all times, which would be verified by the Authorised Dealer Category-I bank concerned and reported to RBI through ECB 2 returns. Besides, the ECB borrower shall also have a board approved risk management policy for the ECBs.

53. What are the operational aspects of hedging of ECB wherever it is mandated by the RBI?

Wherever hedging has been mandated by the RBI, the following should be ensured:

i. Coverage: The ECB borrower will be required to fully cover principal as well as coupon through financial hedges. The financial hedge for all exposures on account of ECB should start from the time of each such exposure (i.e. the day liability is created in the books of the borrower).

ii. Tenor and rollover: A minimum tenor of one year of financial hedge would be required with periodic rollover duly ensuring that the exposure on account of ECB is not unhedged / underhedged at any point during the currency of ECB.

iii. Natural Hedge: Natural hedge, in lieu of financial hedge, will be considered only to the extent of offsetting projected cash flows / revenues in matching currency, net of all other projected outflows. For this purpose, an ECB may be considered naturally hedged if the offsetting exposure has the maturity/cash flow within the same accounting year. Any other arrangements/ structures, where revenues are indexed to foreign currency will not be considered as natural hedge.

54. What are the permitted derivative products for hedging of ECB?

Hedging for ECB purposes means hedging currency risk through products as permitted under Master Direction on Risk Management and Inter-bank dealings. Use of any cost reduction structure for hedging of ECB, which does not fully cover the foreign exchange risk currency risk associated with ECB any time during the currency of the borrowing, is not permitted.

55. What are the other requirements in respect of hedging of ECB?

An entity which is raising foreign currency denominated ECB is also required to follow the guidelines for hedging issued, if any, by the respective sector / prudential regulator in respect of foreign currency exposure.

K. Miscellaneous

56. What precautions have to be taken at the time of filing of Form 83 in respect of an ECB?

Any draw-down in respect of an ECB as well as payment of any fees / charges for raising an ECB should happen only after obtaining the Loan Registration Number (LRN) from RBI by filing duly certified Form 83 to the Director, Balance of Payments Statistics Division, Department of Statistics and Information Management (DSIM), Reserve Bank of India, Bandra-Kurla Complex, Mumbai – 400 051 (Contact numbers 022-26572513 and 022-26573612). It should be ensured that all terms and conditions of the ECB are reported correctly in Form 83 and none of the columns are left blank (such columns which are not applicable for the borrowing or against which ‘nil’ information has to be given, should be suitably covered). Changes in ECB parameters, whether under the automatic route with the approval of Authorised Dealer Category –I banks or under the approval route with prior approval of the RBI, should also be reported to the DSIM through revised Form 83 at the earliest, in any case not later than 7 days from the changes effected. While submitting revised Form 83, the changes should be specifically mentioned in the communication. Any failure to comply with reporting guidelines in respect of Form 83 for an ECB may invite penal action under FEMA.

57. How are actual transactions of an ECB reported to RBI?

The borrowers are required to report actual ECB transactions, correctly and fully, through duly certified ECB 2 Return through the Authorised Dealer Category-I bank to DSIM as per the periodicity specified by the RBI. None of the columns in ECB 2 Return should be left blank (such columns which are not applicable for the borrowing or against which ‘nil’ information has to be given, should be suitably covered). The ECB 2 Return should reach DSIM within seven working days from the close of month to which it relates. Changes, if any, in ECB parameters should also be incorporated in ECB 2 Return suitably. Any failure to comply with reporting guidelines in respect of ECB 2 Return, including failure to adhere to periodicity of reporting, may invite penal action under FEMA.

58. In light of the revised ECB framework, does the borrower need to file revised Form 83?

No, in case no changes are made in terms and conditions of ECB, there is no need to file revised Form 83.

59. Can fixed deposits created out of ECB proceeds, pending utilization, be renewed after completion of maximum permitted period?

No

60. What are the major requirements for Indian banks to participate in ECB space?

Indian banks are not permitted to raise ECB. They can act as ECB lenders (through their overseas branches / subsidiaries) only under Track I of the ECB framework duly ensuring that the applicable prudential norms are complied with. Overseas branches/subsidiaries of Indian banks are permitted only to refinance ECBs of highly rated (AAA) corporates (or equivalent AAA(SO) rating) as well as Navratna and Maharatna PSUs, provided the outstanding maturity of the original borrowing is not reduced and all-in-cost of fresh ECB is lower than the existing ECB. Partial refinancing is also permitted subject to same conditions. Further, any case involving repayment/refinancing of any foreign currency loan by way of rupee loans from Indian banks, prudential guidelines stipulated in paragraph 4(b) of Circular No. BP.BC.85/21.04.048/2014-15 dated April 06, 2015 issued by the Department of Banking Regulation (DBR) of RBI will be applicable which interalia state that such refinance shall be treated as ‘restructuring’ (and classified/provided for as per extant prudential norms on income recognition, asset classification and provisioning), if the above is extended to a borrower who is under financial difficulty and involve concessions that the bank would otherwise not consider. It should also be noted that if the ECB borrower concerned has availed credit facilities from the Indian banking system including overseas branches/subsidiaries, any extension of tenure / change in average maturity period of ECB / change in all-in-cost of ECB/ conversion of unpaid ECBs into equity (whether matured or not) shall be subject to applicable prudential guidelines issued by the DBR of RBI, including guidelines on restructuring, as applicable. Further, such conversion of ECB into equity shall also be subject to consent of other lenders, if any, to the same borrower or at least information regarding conversions shall be exchanged with other lenders of the borrower.

61. What are the primary roles of the designated Authorized Dealer Category-I bank?

The designated Authorized Dealer Category-I bank, which is the bank branch designated by the ECB borrower, would be primarily responsible for meeting the reporting requirements including obtaining of LRN, exercising the delegated powers under these guidelines and monitoring of ECB transactions.

L. Trade Credits

62. Does discontinuance of LoU/ LoC mean that Trade Credit has been discontinued as a means of trade finance?

No, Trade Credits, including Buyers’ Credit, can be availed as a form of clean credit apart from availing Bank Guarantee for Trade Credits, subject to extant Trade Credit guidelines and compliance with provisions contained in Department of Banking Regulation Master Circular No.DBR No. Dir. BC.11/13.03.00/2015-16 dated July 1, 2015 on “Guarantees and Co-acceptances”, as amended from time to time. Letters of Credit/ Bank Guarantee arrangements continue as a form of trade finance, as hitherto.

63. Do LoUs/ LoCs, which have been issued prior to issuance of A.P. (DIR Series) Circular No.20 dated March 13, 2018, but whose tenor is not over need to be cancelled?

No, LoUs/ LoCs issued and accepted prior to the issuance of the said circular may continue till their original validity. However, no roll-over is permitted.

64. Whether SBLC can be issued by AD Category branches on behalf of their customers for availing short term trade finance from overseas lenders in Foreign currency?

AD banks can issue SBLC on behalf of their customers for availing short term trade credit from overseas lenders in foreign currency subject to such SBLCs complying with the provisions contained in Department of Banking Regulation Master Circular No. DBR. No. Dir. BC.11/13.03.00/2015-16 dated July 1, 2015 on “Guarantees and Co-acceptances”, as amended from time to time.

ASSETS & LIABILITIES

According to Accounting terms

ASSETS

Assets are the economic resources of business or we can say assets are the property owned by the business to get benefit on future.

In other words, assets are valuable resources owned by a business which were acquired at a measurable money cost for usefulness.

The various types of assets are:

1- Fixed assets: those assets which are acquired for the purpose of increasing profit earning capacity of the business and are purchased not for sale purpose, they will remain in the business till the business winds up. Example, land and building, plant and machinery etc

2- Current assets: those which can be converted into cash within a short period say one year. These are short term assets for the purpose of converting them into cash. Example, cash in hand, debtors, stock, bank balance etc.

3- Liquid assets: similar to current assets, but they are those assets which can be easily and in a very short period of time can be converted into​ cash, so all current assets except stock and prepaid expenses are considered liquid assets.

4- Tangible assets: assets which having some physical existence or we say which can be touched and seen like land and building, machinery, stock etc

5- Intangible assets: those assets which can't be seen or touched and there revenue generation is assumed to be uncertain. Moreover they can't be purchased or sold in open market examples are goodwill, patents, trademarks etc.

6- Fictitious assets: those assets which do not have any real value and do not have any physical form but are called assets on the basis of legal and technical grounds, as they do not have any real value so they are written off in the future, for example preliminary expenses, discount on issue of shares and debentures etc.

7- Wasting assets: those assets when with the passage of time value of assets decreases, example patents, leasehold property.

LIABILITIES

Liabilities are the claims against those resources or liabilities are the amount which a business owes to outsiders or claim of outside towards business. We should remember one thing that we take all the claims against business except the claims of proprietors. Because claim of proprietors against business is called internal liability or capital.

Example of liabilities are, creditors, bills payable, bank overdraft etc.

We should note that total assets are always equals to total liabilities.

Types of liabilities are:

1- Fixed liabilities: which are payable after a long period or normally one year. Example long term loans, debentures etc.

2- Current liabilities: those which are payable within one year example, bills payable, creditors etc

3- Contingent liabilities: those liabilities which are not a liability for today but it may be liability in future depending on the future events, they are uncertain liabilities so that is why they are called doubtful liabilities also. Example, value of bill discounted, cases pending in court etc.

Total assets=total liabilities

Or

Total assets= internal liabilities+external liabilities

Or

Total assets= Capital+ liabilities

Or

Liabilities= Assets-capital.

CAIIB HRM elective PDF

CAIIB HRM elective PDF

Download link here

https://drive.google.com/file/d/1y_CEUzvTbZkaXpvE5nskPhBjSktlK8B2/view?usp=sharing

All the best

Importer-exporter code number (IEC BFM CAIIB

BFM

🔴Importer-exporter code number (IEC) 🔴

To obtain from DGFT and to quote in all declarations. Manner of receipt of export proceeds : 

🔴The amount of proceeds can be received through AD banks 

➡a) By draft or personal cheque 

➡b) F/c notes or TC from buyer on his visit 

➡c) To the debit of FCNR/NRE a/c of the buyer 

➡d) Any other accepted banking channel 

🔴Realization and repatriation of export proceeds : 

➡a) 9 months from the date of shipment except 

➡b) 15 months from the date of shipment, if export to warehouse outside India 

➡Advance payment against export : The shipment of goods to be made within one year and rate of interest does not exceed LIBOR + 100 BPS

Different types of banking

Para Banking:

Para banking activities are defined as those banking activities which a bank performs apart from its daily activities like withdrawal or deposit of money.

Under para banking activities banks can undertake activities either departmentally or by setting up subsidiaries.

Narrow Banking:

This is a type of banking in which banks invest money mostly in government bonds and securities.

This is done to avoid risk in the market.

Banks dedicated to such type of banking are also known as Narrow Banks.

Offshore Banking

When a bank accepts currencies of countries abroad, such an activity is known as Offshore banking

Sometimes people require more than their local banks can offer. In such cases, they opt for Offshore banking.

It provides financial and legal benefits like privacy and minimal taxation.

Green Banking

Green banking promotes deployment of clean energy technologies.

It stresses on environmentally friendly practices and aims at reducing the carbon footprint from banking activities.

These activities seek to reduce costs of energy for ratepayers, private sector investments and other economic activities.

Retail Banking

Retail banking is a type of banking in which direct dealing with the retail customers is done. This type of banking is also popularly known as consumer banking or personal banking

Retail banking is the visible face of banking to the general public.

Wholesale Banking

Wholesale banking can be referred to as the services provided by banks to organisations like Mortgage Brokers, corporate clients, medium scale companies, real estate developers and investors, international trade finance businesses, institutional customers (such as pension funds & government agencies) and services offered to other banks or financial institutions.

Universal Banking

The recommendation of the concept of Universal Banking was done by the R H Khan committee.

This is a type of banking in which banks are allowed to undertake all types of financial activities regarding banking or development in accordance with the statutory and other requirements of RBI, Government and related legal Acts.

Universal Banking includes activities like accepting deposits, issuing credit cards, investing in securities, merchant banking, foreign exchange operations, etc.

Islamic Banking

Islamic banking is a kind of banking activity which strictly follows the principles of the Islamic law (Sharia) and its application practically through the development in Islamic economics

A better and more apt term for Islamic banking is Sharia Compliant Finance.

Unit Banking

USA is where such type of banking was first introduced.

In such a type of banking, all the operations are performed from a single branch.

A customer having an account in a specified branch has to undergo all banking activities through that branch.

Examples are Regional Rural Banks and Local Area Banks.

Mixed Banking

Mixed banking is a type of banking in which deposits and investment activities take place simultaneously.

It can also be described as the dual functioning of investment banking and commercial banking.

Chain Banking:

Chain banking is a type of banking which is a group of minimum 3 banks held together by a group of people to carry out effective banking activities.

Instead of having a holding company the bank functions independently.

The revenue is maximised since there is no overlap of activities.

Relationship Banking

In such a type of banking, the the major needs of the customers are understood by the bank and accordingly banking services are provided to the individual.

Banks get to know if the customer is credit worthy since they have to gather information about its customers.

Correspondent Banking

In more than 200 countries, this type of banking is prevalent and is considered the most profitable way of doing business.

In such a type of banking, the bank does not have a physical presence or any limitations in the permission of operations.

It acts as a banking agent for a home bank.

New Financial statements and Terms PDF useful for CAIIB ,CCP, JAIIB

New Financial  statements and Terms PDF

Download link here

https://drive.google.com/file/d/1M2pNNG4VfC6PeQqxHey89Dw2tA-2Sxqj/view?usp=sharing

According to Accounting terms

ASSETS

Assets are the economic resources of business or we can say assets are the property owned by the business to get benefit on future.

In other words, assets are valuable resources owned by a business which were acquired at a measurable money cost for usefulness.

The various types of assets are:

1- Fixed assets: those assets which are acquired for the purpose of increasing profit earning capacity of the business and are purchased not for sale purpose, they will remain in the business till the business winds up. Example, land and building, plant and machinery etc

2- Current assets: those which can be converted into cash within a short period say one year. These are short term assets for the purpose of converting them into cash. Example, cash in hand, debtors, stock, bank balance etc.

3- Liquid assets: similar to current assets, but they are those assets which can be easily and in a very short period of time can be converted into​ cash, so all current assets except stock and prepaid expenses are considered liquid assets.

4- Tangible assets: assets which having some physical existence or we say which can be touched and seen like land and building, machinery, stock etc

5- Intangible assets: those assets which can't be seen or touched and there revenue generation is assumed to be uncertain. Moreover they can't be purchased or sold in open market examples are goodwill, patents, trademarks etc.

6- Fictitious assets: those assets which do not have any real value and do not have any physical form but are called assets on the basis of legal and technical grounds, as they do not have any real value so they are written off in the future, for example preliminary expenses, discount on issue of shares and debentures etc.

7- Wasting assets: those assets when with the passage of time value of assets decreases, example patents, leasehold property.

LIABILITIES

Liabilities are the claims against those resources or liabilities are the amount which a business owes to outsiders or claim of outside towards business. We should remember one thing that we take all the claims against business except the claims of proprietors. Because claim of proprietors against business is called internal liability or capital.

Example of liabilities are, creditors, bills payable, bank overdraft etc.

We should note that total assets are always equals to total liabilities.

Types of liabilities are:

1- Fixed liabilities: which are payable after a long period or normally one year. Example long term loans, debentures etc.

2- Current liabilities: those which are payable within one year example, bills payable, creditors etc

3- Contingent liabilities: those liabilities which are not a liability for today but it may be liability in future depending on the future events, they are uncertain liabilities so that is why they are called doubtful liabilities also. Example, value of bill discounted, cases pending in court etc.

Total assets=total liabilities

Or

Total assets= internal liabilities+external liabilities

Or

Total assets= Capital+ liabilities

Or

Liabilities= Assets-capital.

CMA DATA FORMS

CMA DATA FORMS

What reports are covered ?

It covers following statements:

1. Details of existing and proposed fund limit: In this report, details about your current financial condition, borrowed fund and proposed fund are covered.If the business is new, proposed data is required to be given.

2. Operating statement: You are required to show past 2 years and future 3 years ( Proposed) operating statements. There may be some changes as per loan needed and business nature.The profit and loss account should be presented here.

3. Analysis of balance sheet: Details about your balance sheets of past years are required to show. It is also required to show proposed balance sheet data to show a picture of your future business plan. Details about current assets, fixed assets, current and long-term liabilities are presented in this statement.

4. Comparative statements of current assets and liabilities: This statement describes the viability of your working capital cycle.

5. Calculation of MPBF: Calculation of maximum permissible bank finance. This statement shows the capacity of the borrower to borrow money. It depends on two methods which are dependent on working capital.

6. Fund flow statements: This statement shows the fund flow statements for current and future years. It shows the fund utilisation and sources of funds.The statement is important because it highlights the utilization of fund. To make sure the bank that you are using the fund for the purpose you have borrowed.

7. Ratio analysis: This is also one of the long and important statements of CMA data.It covers key ratios. Some ratios are the current ratio, MPBF, Net worth ratio, quick ratios, turnover ratios, debt-equity ratios, DSCR etc.

 No same report for all businesses:

There are different business types and according to their business nature and size, CMA report is prepared. It is not similar for all businesses. Similarly, CMA report is prepared as per nature of the borrowed funds. The data is different for the working capital loan or for CC or for CMA data for the bank guarantee.

 What is the benefit of submitting CMA report?

By submitting CMA data report with right ratios and proper presentation of usage of funds, your chances of getting the loan has been increased. Provided you follow other procedures and requirements of banks.

 CMA ( Credit Monitoring arrangement) data preparation does not mean only filling data but it requires deep knowledge of finance 

MOST IMPORTANT AFB Recollected::

MOST IMPORTANT AFB Recollected::

1. Preference share option related voting rights were given

2. Foreign exchange dollar hkd and rupees cross currency was asked in rs

3. Eosp when it is issued or employees has buy predermined rates

4. Depreciation wdv 2 questions and sum of years 1

5. Error of principle

6. Gold loan rules for sanctioning

7. Bond volatility

8. spot rate meaning

9. Value date

10. e-commerce is?

11. Computer software is developed by?

12. Cost of sales gross profit net profit

13. Reconciliation

14. Closing stock apear-trading and balance sheat

15. Contingent liability-bank garanty

16. AS 13 relates to investment

17. Medium risk-8 years

18. SHG- kyc not required of all member

19. Sinking fund formula same as - FV anuity

20. Prepaid exp-current liability

21. Depriciation 2 qtns from wdv method and one from wtd average method

22. Outstanding salary - personal act

23. Expenses and incomes - nominal act

24. Real a/c debited-what comes in

25. Statement record all ledger balance-trial balance

26. Small account credit in a year - 1 lakh

27. Govt Company - 51% share

28. Question on kyc

29. Saving ac interest calculation....

30. Question in cash book and pass book

31. Long term Liabilities changes

32. Effect on assets

33. No question on SI, CI and EMI

34. Question from trial Balance

35. Real account, Personal account, Nominal account

36. 1 question is that Representative personal acc is 1

37. Question on wdv depreciation method

38. 2 marks question on foreign exchange rate

39. 1 question on ESOS

40. Floating rates are called ......

41. Back office may be situated in ......

42. Long term liabilities are payable after ......

43. High Financial Leverage means ......

44. Expenditure & Income reales to ......

45. Non Voting Shares

46. Double entry system means ......

47. Vaule date

48. Residual Value

49. YTM bond is ......

50. Spot

51. Call & Short Money

52. Credit & Debit Voucher

53. Chq clearing

54. Net profit value

55. Gross profit

56. Debt equity ratio

57. Issued shared

58. Banking manual

59. Question on cross currency rate 2 marks

60. Gross profit & net profit 2 marks

61. YTM 2 marks

62. Debit in real account refers to.....

63. KYC verification for shg group members....

64. CA cannot opened by....

65. Gross profit

66. Present value

67. Cash book passbook

68. Real nominal accounts

69. Fixed n floating rate

70. Call money notice money

71. Numerical Questions on gross profit, bond value, current yield, depreciation, present

value of some amount

72. Petty cash - 3question

73. Bank reconcile-2ques

74. 2 question from prepaid expenses

75. Main function of bank

76. Gross profit

77. Present annuity

78. Proprietorship firm

79. Meaning of holding company

80. Cash flow 55000, Useful Life 5 years, IRR 15%, Cost of capital 11%. Find NPV

81. What is consolidated voucher

82. Representative personal account

83. DE ratio owen fund current ratio total assets given n find the current asset

84. Sweat equity share

85. KYC - 2 questions

86. Salvage value in depreciation method 2 questions

87. Forex arithmetic 3ques's

88. Depreciation of machinery after 2 years written down value

89. kyc risks

90. STR report

91. Risk mgmt

92. BCSBI 1 question

93. Credit bal

94. Debit bal 2ques

95. Forfeiture of shares

96. Preference share

97. Dual concept

98. Accrual concept

99. Formula of depreciation

100. Sinking value 2 ques's

101. NPV VALUE OF Firm Calculation 2 Questions

102. Debt equity ratios...

103. Depreciations on fixed value...2-3ques...

104. Depreciation on straight line (residual value) ques...

105. Company having 51% share of another company...

106. Maximum limit of transaction in small (ovd )accounts in a year....

107. Current a/c cant be opened by....options were ...pardanashin women....minor

....blind...a ccompany..

108. Sweat equity shares...

109. GAAR full form...

110. Money market mutual funds are regulated by...

111. If a person transfer a/c frm one branch to another branch den required kyc???

112. Companiesare classified on the basis of...options were

...location...capital...managemnt...incorporation etc...

113. Bond value.....

114. Insurance premium for 45 days???

115. Typs of clerical errors.....

116. Periferal devices of computer...options were...keyboard windows..

117. A Suspesious Transion report where the report ( FIU-Ind)

118. Objective PMLA

119. When a minor open self operated account

120. Deleting Drawing 2 Questions debit or credit account

121. What is bond maturity value (YTM)

122. What is coupon rate

123. Prepaid expenses or outstanding account adjustment done or not

124. Samll account time

125. Rectification of error 4-5 Questions

126. Depreciation 4-5 Questions (3 Numerical)

127. Final Account 5-6 Questions

128. Foreign exchange 3 Questions all numerical

129. YTM 3 Questions

130. Education loan - 2 Question

131. Gold loan-1 Question

132. Consolidate voucher

133. Bank General ledger

134. Ratio 3 Question

135. How to improve current ratio

136. Inventory turnover ratio

Find cost of good sale if opening is80000; purchase is 120000;direct expense 5500;

indirect expense 4000 ;closing is9000

Bond par value is 100, market rate is 12% and 15% is .....find bond price

Ravi wants 500 at every quarter for 5 year , at the rate 10%.find initial deposite

When bond price is equal to Face value.

Interest paid in advance is a type of account

In which depreciation rate of interest is constant

Car purchase by a company is which type of expense

Auditor of a bank is appointed by

In cbs branch computer is connected to the server and all server are connected to main

data centre server

In India 1$=66.56-66.74and 1 euro=1.1456-1.1765$ then relation betwn rupee and

euro

Wages for installation of machine is debited wages acct is which type of error

Find closing balance if cost of goods sold ,puchase,indirect expense, opening balance is

given - For 1year, For 3years

A company deposited 5000at the beginning of the year to puchase amachinary for

20year at the rate 10% find present value of annuity

Schedule AS6 define

Which are the peripheral related to computer

Which of the work out sourced by bank - Ans loan recovery

Which work is not done at back office

Calculation of EMI

Calculation of interest on loan

E kyc is done at periodically to which type of customer

Why Ekyc is usefull

A loan is sanctioned and disbursed 100000 but after 1 year it shows outstanding of

101000. Than what is 1000

4 questions from identifying type of error

Gold loan eligibility

Bond face value one numerical pbm

Bank reconciliation statement given passbook balance and asked cash book balance and

viceversa-2numerical question and 2 case study type question in above

Cost sales netprofit numerical pbm

Given coupon rate,rate of interest and par value asked market price.

Accounting concepts AS29

Business entity,matching concept - give situation asked to find the type of concept

Benefits of CBS

Bill drawn by A on B endorsed it to c....After due date the entries are bills

receivable,noting charges-wat could have happened?

1. WDV Depreciation> 2problems

2. Who cannot open a Current a/c>minor, illiterate, blind or unregistered society

3. Balance sheet given. Calculate gross profit and net profit

4. Capital paid by shareholders >Paid up capital

5. Calculate PV and bond price>2 problems

6. Which is not true abou Company a/c

7. Cross currency problem

8. What is Spot

9. Due date of a bill from 29june(3months)

10. Suspicious transaction report to >FI UNIT

11. closing stock apear-trading and balance sheat

12. contingent liability-bank garanty

13. AS 13

14. medium risk-8 years

15. SHG- kyc not required of all member

16. sinking fund formula same as - FV anuity

17. Prepaid exp-current liability

18 depriciation 2 qtns from wdv method and one from wtd average method

19. outstanding salary - personal act

20. expenses and incomes - nominal act

21. real a/c debited-what comes in

22. statement record all ledger balance-trial balance

23. current yeild

24. bond value

25. mehod of accepting proposal-irr, npv,payback

Limited company pvt compny

account opening of huf

huf Kyc computerised a ccounting

simple interest que

wrongly credited de bited type question 3-4

Theoretical question on IRR and NPV

maximim 10 numericals 5 of 2 marks

2 marks numerical from ratio analysis

Depricition digit sum method numeric al

Acid test ratio=........... quick ratio

person who makes Promissory not e called - debtor (buyer)

gross profit, NPV numerical

related to cbs

according stan dards

capital or revenue ex penditure

earning per share theory quest ion

Dept turn over ratio problem

Bill receivable comes under a sset or liability

Under bills of exchange, which ac Dr.

Under bills of exchange, which ac Dr.

Sales and cost of goods sold gross pro fit

Foreign exchange and cross currency cal c

cross currency u have to add premiums an d sub discount

Composite voucher

Composition, redee mable, share preferential shares

1. Who prepared Bank Reconciliation Statement?

2. Who will bear the expenses charge creation?

3.cost of mationary is RS 12 lacs, scrap value is 0; useful life is 10 yrs; then find out the

book value for the 4th year.

4. P =10000; A= 11200; r=6℅ p.a then find out time?

5. Classification of ratios?

6. Credits = assets - ?

7. P= 10000 r= 8.5℅ pa compounded quarterly; T=4 yrs then find out A=?

8. Find out current yield on bond is RS 5000/- r = 12℅ pa and market value = 4500

9. Sweat equity shares will be given to ?

Document mgnrega card on identification on a/c opening.

Back office to be establised in ......

No of digits in Adhar, min no of persons in public ltd company

adhar card..bond value..irr.npv..com interest..cash book and passbook od..nominal act

real act ..expendture

balance sheet was given and profit was asked , how deaf is calculated, ytm npv,

bcsbi..kyc year..housing loan ...slm..and wdv method .interest differential..eroor

clerical...net profit ratio.5 qus on trial bal...

virus 1)affect hardware 2) is software 3) like virus of human 4) can not affect data - 2

Present value of bond

Which r 2 types of trial balance

Writing from journal to ledger is called?

2-3 qustns from foreign exchange arithmetic

Calculate amount given to petty cashier using imprest method

Current ratio based questions

Quick ratio is another name of -------?

Depreciation problems using wdv

Straight line method and sum of digits method

……………………………………………………………………

1) bond theorem -2 question 
2) bond sum
3) quick ratio 2sum
4) current ratio 1 sum
5) depreciation 4 sum
6) NPV
7) Pay back method 
8) ARR method _1 
9) Capital budgeting 1
10) Compound interest 2 sum 
11) Bond ARR value 
12) Concept of covertism 
13) Concept of consistency 
14) Full disclosure 
15) Accounting method -3 
16) Cost method 
17) Material method
18) Matching method 
19) Small savings bank account - who all can open , look 
20) EMI
21) Coupon rate 
22) Kyc 
23) Bcbsi account 
24) Trail balance error 
25) Company types - how it vil be registered 
26) LAN WAN - networking of 27)computreconcilation in which entry is required .... In which rectification entry not require 
28) Which error affects two accounts 
29) forward point - dollar to euro, euro to rupee 3 questions

Direct simple question on EMI
Twisted but very simple question in depreciation
Ratios some questions
KYC
LAN and WAN
Computer password
Reconsiliation
3 questions from cash book pass book. In this one question is sum others are theoretical
Conversion from euro to one unit of rupee
Direct questions on forward point
2-3 questions currency conversion dollars
Quick and current ratio - 4-5 questions
Emi 5 Lakhs 12% - monthly EMI for 2 years
Deprecation 3-4 questions numerical
The value get double at 9.75% in how many years
Single sided corr - 2-3 questions
RTGS related
Computer security related
Advantage of computerisation
Balance sheet
Prepaid expenses is what ...
Personal account
One more on real account based
Loan processing - 2 questions