Working Capital Ratios

Working Capital Ratios
1. Net Sales to Total Tangible Assets (times) (NS/TTA):
Indicate the company's ability to generate sales by utilising its Tangible assets. Tangible assets are total assets minus intangible assets.
Rationale: It is very important to understand - whether achievement of sales by the unit is on account of utilising tangible assets or intangible assets. As mostly, Bank finance will be given for creation of tangible assets, performance of the unit is to be gauged based on utilization of tangible assets created out of Bank finance.
2. Operating Cycle- No. of total days: (Inventory / Net Sales) + (Receivables / Gross Sales) (Days):
Operating cycle is number of days required for a unit to put cash into its operations and then getting return in the form of cash i.e., period from cash to cash.
Rationale: It indicates the time required to produce goods, sell the goods and receive cash from customers by sale of goods. Higher the days, higher may be the requirement of WC. This is useful for estimating the amount of working capital that a unit needs in order to run the business.
3. Working Capital Gap:
WC gap = Total Current Assets – Other Current Liabilities (OCL).
If we deduct Bank borrowings out of total current liabilities, we will get OCL.
Rationale: WC gap signifies the amount of current assets getting funded by current liabilities, other than Bank borrowings.
4. Bank Finance (WC Gap – NWC):
Bank Finance = WC Gap – NWC
Rationale: While calculating required amount of short term Bank finance for a unit, we have to deduct available NWC from WC gap.
5. NWC / TCA (%):
It signifies the portion of current assets getting funded by NWC. Though, there is no standard benchmark for this ratio, ideally, this ratio should be more than 25%, minimum.
Higher the ratio, better is the comfort.
6. Sundry Creditors / TCA (%):
It signifies the portion of current assets getting funded by Sundry Creditors. Though, there is no standard benchmark for this ratio, ideally, this ratio should be restricted to maximum 25%.
Lower the ratio, better is the comfort.
7. BF / TCA (%):
It signifies the portion of current assets getting funded by Bank finance (BF). Though, there is no standard benchmark for this ratio, ideally, this ratio be restricted to maximum 50%.
Lower the ratio, better is the comfort.
8. OCL (excluding Sundry Creditors) / TCA %:
It signifies the portion of current assets getting funded by OCL, other than Sundry Creditors. Ideally, this ratio should be low or nil as these liabilities generally are of the nature of Public Deposits (maturing within next 1 year), unallotted Share Application Money, Advance / Deposits from Dealers, Installments of Term Loans (becoming due within next 1 year), Statutory Liabilities, Expenses Payables, Provisions etc which are having little role in creation of current assets.
Lower the ratio, better is the comfort.
9. OCA / TCA (%):
It is the amount of Other current assets out of total current assets. It signifies whether current liabilities are utilized by the unit for creation of core current assets like cash, inventory, receivables or utilised for creation of non core current assets like Advance payments, taxes, prepaid expenses etc.
Lower the ratio, better is the comfort.

Few lessons learnt in past few days

Few lessons learnt in past few days:

1. Majority of people can work from home.
2. We and the kids can survive without junk food.
3. Prisoners in jails for petty crimes can be released.
4. We can build hospitals within days.
5. We can spend Billions of Rupees on poor without red tapism.
6. We can survive vacations without trips to Europe and USA.
7. Developed nations are as vulnerable as any poor nation, in fact more vulnerable.
8. Our family system is still intact..
9. We spend hell lot of Petrol unnecessarily burdening our economy.
10. Rich people are in fact less immune than the poor.
11. Elites are not powerful. They are shallow.
12. Husband can live with his wife without weekly parlour visits and vice versa.
13. Elders are the backbone of a family.
14. Saving money is important.
15. Mutual Funds are actually subjected to Market Risks.
16. Living a hygienic life is not difficult.
17. Only women are not supposed to know how to cook.
18. There are a lot of good people in the World.
19. Don't disrespect nature.
20. Charity is not something you give, it is a satisfaction you recieve.
21. If you build more schools, you have to construct less hospitals.
22. We are encroaching on nature.

Basic Banking Bits ...BANKING LAWS INCLUDING NI,BR & RBI ACT AND PRACTICES

BANKING LAWS INCLUDING NI,BR & RBI ACT AND PRACTICES


1. Provisions relating to Nomination are given in : Banking Regulation Act (Sec 45 ZA to 45 ZF)
2. As per section 26 of the Negotiable Instruments Act, a Minor can draw, endorse, accept a negotiable
instrument but he can not : bind himself
3. A has granted Irrevocable Power of Attorney in favour of B for one year. After 3 months, A
revokes the Power of Attorney. A cheque signed by B is presented for payment_ What will you do?
The cheque will not be paid because POA can be withdrawn before maturity and once it is revoked,
no cheque signed by agent can be debited to account of Principal
4. What is the Doctrine of Ultra Vires in the context of a limited company?: Any act by the directors
beyond the object of the company is considered ultra vires the company and company is not bound by such
act.
5. A minor who was admitted to the benefits of partnership has become major. Within how much period,
he has to decide to remain partner in the firm or not?: within 6 months of attaining majority or 6 months of
knowing that he is the partner in the firm whichever is later.
6. If on a cheque words "Account Payee" is written between two parallel lines or with the name of a
bank, then: the cheque can not be endorsed.
7. Which type of crossing is required to be done if the drawer wants that in case of endorsement, the
title of transferee of the cheque should not be better than the title of the transferor: Not Negotiable Crossing
8. In the case of dishonour of a cheque due to insufficient funds, for enforcing rights under section 138
of the Negotiable Instruments Act 1881, the holder should send a notice to the drawer within: 30 days from
the date of receipt of notice regarding dishonour of the instrument.
9. The iimitation period for filing case in case of dishonour of cheque due to insufficient funds is: 1 month
from the date of cause of action.

10. Objectives for which a company has been formed are given in: Memorandum of Association
Full formof BCBS is Basel Committee on Banking Supervision.
11. Direct Impact of increase in CRR is : Controlling Liquidity
12. Banks can not issue Demand Draft payable to Bearer as per provisions of : Section 31 of the RBI Act
13. Grace Period is allowed in the case of : Usance Bills and Usance Promissory Notes
14. Indian Banks are required to maintain minimum Capital Adequacy Ratio of : 9%
15. In the case of individuals and HUF, tax will be deducted at source if the interest on term deposit in a
financial year is : more than Rs 10,000
16. If Power of Attorney is executed outside India it should be stamped within:90 days of its first arrival in India
17. For its implementation, the complainant should accept the award given by Ombudsman within: 30
days of the receipt of the copy of the award.
18. When proceeds of cheque are given before clearance of the cheque the banker will be called: Holder
for Value
19. What do we 'mean by Surrender Value of Life Insurance Policy?: Minimum amount payable by the
insurance company in case of foreclosure of the policy before maturity.
20. In the case ofWrongful dishonour of cheque, to whomthe bank is liable?: Drawer
21. If date on a cheque is prior to the date of its presentation, it is called: Ante Dated cheque
22. What isminor's liability in HUF Account: Minor is not liable
23. When does the right of nominee starts in respect of a deposit account?: After death of all depositors
24. For injectingmoney in themarket which type of transaction is undertaken?: (a) Repo (b) Reverse Repo
25. Garnishee order is not applicable to: Unutilised portion of the Cash credit limit
26. Which of the following is not added in the demand and time liabilities for calculation of SLR?: Capital and
reserves, inter bank deposits for maturity up to 14 days, borrowings from RBI and refinance from NABARD, SIDBI.
27. RBI controlsmoney supply through: change in CRR
28. Loan given to a director can be waived: after permission of RBI.
29. Under theOmbudsmen scheme, the Bank has to reply to the objection of the complainant within: onemonth
30. Locker should be broken open if it is not operated for _ year in case medium risk and _ year
in case of high risk customers: (3,1).
31. A post dated cheque is passed in the account of a customer. But another cheque which was in order was
dishonoured due to insufficient funds.What is the liability of the Banker?: Bank is liable to the drawer for paying post
dated cheque as bank is not justified in paying post dated cheque. The bank will be liable to drawer for damages on
account of wrongful dishonour of cheque.
32. Which type of preferential shares are treated as part of Tier I capital of the Bank?: Perpetual Non
Cumulative Preference Shares.
33. As per RBI guidelines, all banks are required classify business in various business segments with effect from
31-03-2008. The segments are: (a) Treasury (b) Corporate /Wholesale Banking, (c) Retail Banking, (d) Other Banking
Business. The geographical segments are 'domestic' and 'international'.
34. Customer of your bank asks for cash payment of crossed DD.What would you do?Generally payment only
through bank account. However, bank can pay after duly satisfying the genuineness of the draft and payee but bank will
continue to be liable to true owner if recipient is not true owner.
35. A cheque is presented for payment in which the amount in words and figures is different. Bank
should pay which amount?: amount written in words will be paid.
36. Whether aPrivate Limited company can be a partnerwithPublic Limited company to formaPartnership?Yes
37. In the context of Nomination, which is correct statement?:Signatures of nominee not required on
nomination form. Nominee's name should be mentioned on FDR if agreed by the customer.
38. A bearer cheque of Rs.7,000/- was presented. The cashier informed that the cheque can not be passed
as the balance is less by Rs.700/-. The tenderer credited the amount of shortfall and the cheque was paid.
Customer disputed the transaction.Whether bank is liable?: Yes. For disclosing balance to third party, bank is
liable to account holder.
39. _____________ As per KYC guidelines, the periodicity of obtention of photograph and latest
address proof for Low Risk. Customers is Medium Risk years and High Risk Customers is : 10
years, 8 years 2 years.
40. When an order passed by Banking Ombudsman is accepted by the complainant, the same
should be complied within: 1 month from the date of receipt of acceptance from the complainant.
41. Penalty for delay is per day if information is not furnished within prescribed time under Right to Information
Act:

42. A crossed DD was paid by cash. What risk is there for the Bank: Bank will be liable to true owner of
the DD if payment made to a person other than true owner (Section 129 of N I Act).
43. A cheque is written in English and Regional Language. Whether it can be paid?: Yes. A cheque
written in different language can be paid if otherwise in order.
44. Who cannot become a partner in a firm as per supreme court judgment HUF
45. Introducers liability / responsibility in case of an account holder defrauding Bank is : To assist the
Bank in locating the a/c holder - does not have legal liability
46. Nomination - Minor can be a nominee.
47. Inoperative accounts: 2 Years & above not operated.
48. RTI Act - party seeking information need not disclose the reasons for which the information sought for.
49. Counterfeit notes returned after police verification, the same has to be preserved for 3 years
subject to half yearly verification.
50. Validity period of cheque reduced to 3months from 1.4.12 as per : RBI Guidelines under sec 35A of B R Act
51. Crossed cheque payment across the counter to the authorized Officer of collecting Bank - can be
made and there are no violation as per NI Act. 255.
52. The consequence of non registration of Partnership - firm cannot sue others for its dues.
53. Banks are required to implement the award of Ombudsman unless a decision is taken to appeal
against the same within one month from the date of receipt of acceptance of the award by the
complainant.
54. Account holder A & B want to substitute their name with the name of their sons C & D in the
account. What should the bank do?: Substitution of all names is not allowed. At least one of the original
account holder should be retained in the account.
55. When only image of cheque is sent to the paying bank while sending cheque for collection instead
of sending the physical cheque, the process is called: Cheque Truncation
56. A Cheque partly written in English & partly in regional language is presented for-paymentWhat should
the bank do?: May be paid, if otherwise in order and the language other
than.English is the regional language of the area where the cheque is presented.
57. An authority has been granted in an account You have received information about the death of the
Principal. Today, you receive a cheque signed by the agent which is dated prior to the death of the Principal.What
should the bank do? : Cheque can not be paid as authority of agent comes to end with the death of the Principal.
58. You aremaintaining current account in the name of the Trust. You receive notice of death of one of the
trustees. After this notice, a cheque signed by the deceased trustee is presented for payment.What should the bank
do?: Chequemay be paid, if otherwise in order.
59. As per Consumer Protection Act, the period for filing appeal to State Commission against decision
of the District Forum is: maximum 30 days
60. Who can not be full fledged partner: Minor
61. Can Karta of HUF appoint Agent or delegate the powers to other co-parcener: Yes, he can do so.
62. Money deposited after receiving order may be attached in the case of: attachment order
63. Original & duplicate draft presented simultaneously for payment: Duplicate should be paid &
original should be returned.
64. Company has registered office at Delhi, factory at Kolkata & loan taken at Mumbai. For creating
equitable mortgage title deeds can be deposited at: any notified city.
65. Reasons for avoiding advance to Un-Registered Partnership Firm: Firm can not sue against anyone
for recovery of its debts but anyone can sue against the firm.
66. What is the effect of 'Not Negotiable Crossing'?: Transferee does not get better title than the transferor.
67. Payment of cheque can be stopped by: only Drawer of the cheque
68. Account payee crossing defined in:-Not defined any where
69. What is the current rate of interest paid on CRR?: NIL
70. How can be the transferability of Bill of exchange can be restricted? Bymaking restrictive endorsement
71. If on a Bill-of Exchange, two parallel lines are drawn and not negotiable is written between the lines, what
kind of the crossing will be there: Provisions relating to crossing are not applicable to Bill of Exchange.
72. Within priority sector, what is the allocation to weaker section?: 25%
73. Maximumtime within which replymust be given underRight to information act? 30 days
74. What is the status of Nominee? Trustee of Legal heirs
75. Safe deposit vault is governed by provisions of: Transfer of Property act
76. A cheque signed by agent has been presented after his death for payment.What should the bank do?: The
e
42. A crossed DD was paid by cash. What risk is there for the Bank: Bank will be liable to true owner of
the DD if payment made to a person other than true owner (Section 129 of N I Act).
43. A cheque is written in English and Regional Language. Whether it can be paid?: Yes. A cheque
written in different language can be paid if otherwise in order.
44. Who cannot become a partner in a firm as per supreme court judgment HUF
45. Introducers liability / responsibility in case of an account holder defrauding Bank is : To assist the
Bank in locating the a/c holder - does not have legal liability
46. Nomination - Minor can be a nominee.
47. Inoperative accounts: 2 Years & above not operated.
48. RTI Act - party seeking information need not disclose the reasons for which the information sought for.
49. Counterfeit notes returned after police verification, the same has to be preserved for 3 years
subject to half yearly verification.
50. Validity period of cheque reduced to 3months from 1.4.12 as per : RBI Guidelines under sec 35A of B R Act
51. Crossed cheque payment across the counter to the authorized Officer of collecting Bank - can be
made and there are no violation as per NI Act. 255.
52. The consequence of non registration of Partnership - firm cannot sue others for its dues.
53. Banks are required to implement the award of Ombudsman unless a decision is taken to appeal
against the same within one month from the date of receipt of acceptance of the award by the
complainant.
54. Account holder A & B want to substitute their name with the name of their sons C & D in the
account. What should the bank do?: Substitution of all names is not allowed. At least one of the original
account holder should be retained in the account.
55. When only image of cheque is sent to the paying bank while sending cheque for collection instead
of sending the physical cheque, the process is called: Cheque Truncation
56. A Cheque partly written in English & partly in regional language is presented for-paymentWhat should
the bank do?: May be paid, if otherwise in order and the language other
than.English is the regional language of the area where the cheque is presented.
57. An authority has been granted in an account You have received information about the death of the
Principal. Today, you receive a cheque signed by the agent which is dated prior to the death of the Principal.What
should the bank do? : Cheque can not be paid as authority of agent comes to end with the death of the Principal.
58. You aremaintaining current account in the name of the Trust. You receive notice of death of one of the
trustees. After this notice, a cheque signed by the deceased trustee is presented for payment.What should the bank
do?: Chequemay be paid, if otherwise in order.
59. As per Consumer Protection Act, the period for filing appeal to State Commission against decision
of the District Forum is: maximum 30 days
60. Who can not be full fledged partner: Minor
61. Can Karta of HUF appoint Agent or delegate the powers to other co-parcener: Yes, he can do so.
62. Money deposited after receiving order may be attached in the case of: attachment order
63. Original & duplicate draft presented simultaneously for payment: Duplicate should be paid &
original should be returned.
64. Company has registered office at Delhi, factory at Kolkata & loan taken at Mumbai. For creating
equitable mortgage title deeds can be deposited at: any notified city.
65. Reasons for avoiding advance to Un-Registered Partnership Firm: Firm can not sue against anyone
for recovery of its debts but anyone can sue against the firm.
66. What is the effect of 'Not Negotiable Crossing'?: Transferee does not get better title than the transferor.
67. Payment of cheque can be stopped by: only Drawer of the cheque
68. Account payee crossing defined in:-Not defined any where
69. What is the current rate of interest paid on CRR?: NIL
70. How can be the transferability of Bill of exchange can be restricted? Bymaking restrictive endorsement
71. If on a Bill-of Exchange, two parallel lines are drawn and not negotiable is written between the lines, what
kind of the crossing will be there: Provisions relating to crossing are not applicable to Bill of Exchange.
72. Within priority sector, what is the allocation to weaker section?: 25%
73. Maximumtime within which replymust be given underRight to information act? 30 days
74. What is the status of Nominee? Trustee of Legal heirs
75. Safe deposit vault is governed by provisions of: Transfer of Property act
76. A cheque signed by agent has been presented after his death for payment.What should the bank do?: The

cheque will be paid if otherwise in order.
77. Purpose of star series notes: To replace defectively printed notes
78. Customer-bank relationship in locker account: Lessee-Lessor
79. Upto what amount District forumcan be approached under Consumer Protection Act?: Rs.20 Lacs
80. Appeal against the award of Ombudsman can be made by the bank within: 30 days of receiving the
acceptance from the complainant.
81. Cheque issued by director of a company and presented after his death will be: Passed if in order
82. What would be the action of central bank in recession?: create liquidity by decreasing CRR and lower
the repo rate.
83. Ante dated cheque like cheque dated 15.12.07 is presented for payment on 1.1.08 whereas_ the account was
opened on 20.12.07 : Cheque should be passed
84. If amount in words and figures differ on a cheque and amount written in words is higher than the
amount written in figures, then as per sec.18 of NI Act, which amount should be paid?: amount written in
words
85. Nomination facility is not available in the case of : Trust A/c.
86. customer service Committee meeting held on : Monthly basis
87. A person wants to open a joint account with his wife in such a way that the account can be operated
by him only during his lifetime and she should be able to operate the account only after his death. The
account has to be opened with the instructions: 'Former or survivor'.
88. For wrongful dishonour of the cheque the bank is liable to: the drawer of the cheque
89. Banks print cheque books having similar particulars. The format of cheque is prescribed by which Act
: Not defined in any Act. It is as per practice. CTS 2010 advised by RBI
90. Which crossing takes away the feature of assumption of defective free title available to the transferee
: Not negotiable crossing
91. Who is appointed to tackle public complaints against the public authorities : Ombudsman
92. The facility of nomination is not available to Trust account because it is account : Non-individual
(facility of nomination is available only in the case of individual(s).
93. The true owner of a cheque has been deprived of his right by collection of the cheque for a different
person. This is called Conversion
94. As per recent RBI/Govt. guidelines, pensioners can open account jointly with: spouse, to be operated
as either or survivor or former or survivor.
95. While paying a bearer cheque, signatures are obtained on the back side of the cheque. Why ? : As
evidence of payment
96. Whether Minor can nominate ? no. On his behalf nomination will be done by a person legally
competent to act on his behalf.
97. Cheque is dated before date of its presentation is called: Antedated cheque
98. An endorsement in which endorser excludes his liability is called : sans recourse
99. When a company is financed against the security of hypothecation ormortgage of itsmovable property, the
company is required to file particulars of charge with: Registrar of Companies (no registration of charge required for
pledge).
100. Who is called as Holder as per N I Act?: Who is entitled to possession of the instrument in his own
name (actual possession is not necessary).
101. If a cheque is dishonoured due to insufficient funds, then as per section 138 of N I Act, court may
award imprisonment up to: 2years
102. On the face of a cheque, the name of a bank is written without two parallel lines. This will amount to : special
crossing
103. A/c payee crossing is defined in : it is not defined in any Act. It is as per practice
104. Nomination facility for deposit accounts is available under: 45ZA & 45 ZB of the BR act
105. Maximum amount of deposit which a bank may ask while allowing locker facility to a customer:
Advance rent for 3 years and locker breaking charges
106. A solicitor has account in his name and in the name of his client. Garnishee order is received in the name of the
solicitor.Whether the same will be applicable in the name of client also: No because two accounts are not in the same
right and same capacity.
107. Which of the following is not amaterial alteration? Changing bearer to order
108.
109. A bill issued without consideration is called: Accomodation Bill
110. There is a joint account in the name of A &B. A cheque is drawn by A but the alteration in the amount is
authenticated by B.Whether bank can pay the cheque: Yes provided the operation is either or survivor.
111. The term used for conversion or transfer of property derived from a criminal offense for the purpose
of concealing, or disguising, the illicit origin of the property is called: Money laundering
112. In which of the following situations bank will not be a holder in due course?: When bank credits the
account of the customer after receipt of funds on account of cheque sent for collection
113. The rate at which RBI rediscounts the usance bills of banks is called: Bank Rate
114. Which of the following is not true about RBI (a) RBI announces credit and monetary policy (b) RBI
maintains forex reserves (c) RBI allows ways and means advance to central Govt (d) Banking Secretary of
Union Govt is the Governor of RBI Ans is (d)
115. In the case of IPO, the company is required to allot shares ormake refund within: 30 days of the closure of
the issue in case of fixed price public issues; 15 days in case of book built issues and 15 days in case of right issues
112. Bankcanchargecollectionchargesofnotmorethanfor_outstationchequesofRs10000toRs1lacinsavingbank:Rs.100
113. Which of the following cheques can not be paid by the bank? : A cheque on which signatures of drawer have
been forged irrespective of the cleverness in forgery and though these appear to be same as that of the drawer.
114. FIU stands for : Financial Intelligence Unit (India)
115. Two cheques have been presented to you as paying banker. One is dated prior to opening the account and
other is dated prior to issue of cheque book.What will you do as paying banker?: Both cheques will be paid.
116. KYC and FIU in India are associated with: preventing money laundering
117. Articles of Association mentions: directors' powers
118. Garnishee order is not applicable on: (a)cash received after two hours of receipt of Garnishee order
(b) amount received for safe custody (c) undrawn balances in cash credit accounts
119. A person having locker has expired. The nominee comes. A sealed cover is found. What will you do ?
: It will be delivered to him as part of locker contents without opening the packet.
120. A bill was presented on 10.5.2005 and accepted on 12.5.2005. The bill was due for payment on
29.07.2005 and was returned. The last date for filing suit in this case is : 29.07.2008
121. A listed bank has to prepare and publish balance sheet on quarterly basis as per: SEBI guidelines
122. There are certain instruments defined as negotiable instruments under law and certain instruments used as
negotiable instruments as per practice.Which of the following is not a negotiable instrument as per NI Act: Dividend
warrant
123. On repayment of_debt of a company, satisfaction of charge shbuld be filed with ROC within: 30 days
124. A Trust Deed is silent about loans by the trust. The trustee approaches for a loan. Under these
circumstances what should the bank do?: No loan can be raised
125. Which of the following un/under-stamped document can not be revalidated by paying penalty: None of
these as all documents can be revalidated. (However, as per question Demand Promisory note cannot be
revalidated).
126. A person of 65 years of age can not nominate which of the following persons: Trust
127. The aggregate limit for capital market exposure of a Bank is: 40 0/0 of net worth at the end of previous year
128. The aggregate limit for capital market exposure of a Bank is: 40 0/0 of net worth at the end of previous year
129. A minor approaches for a loan. Which type of loan can be given to him: loan can not be sanctioned
other than for necessities.
130. A public limited company can start business after receiving from Registrar of Companies.
Certificate of commencement of business.
131. Which of the following does not match in banker/customer relation : Locker facility - Bailee/Bailor
132. Committee on Procedures and Performance Audit of Public Services (CPPAPS) was headed by:
S.S. Tarapore
133. Customer service code has been mentioned in : Banking Codes and Standards Board of India.
134. Cheque received in clearing signed by whom will not be passed out of the following: signed by a
person who has ' been declared insolvent.
135. Whether a customer can approach Ombudsman without first approaching the Bank : Approaching the
bank first is a pre-condition.
136. In case a forged note is detected in the cash tendered at bank counter, what should the bank do?:
The Note should be impounded and not returned to the tenderer.
137. If a guardian is appointed by court, minor will become major at the age of: 18years
138. A Cheque with forged signatures is presented for payment and is paid. Bank will be liable to:
Customer (Drawer of the cheque)
139. Protection is available to the collecting banker in case of : Crossed cheques
140. Which is not a General Crossing: Name of a bank written between two parallel lines
141. If time is not mentioned on a Bill of Exchange, it will be payable: on demand
142. Format of Cheque has been prescribed in which Act?: None because it is as per Practice and Usage
143. In an account of Club with you, cheque has been been presented for payment signed by the secretary
who has died. What should the bank do?: It will be paid if it not dated subsequent to date of death.
144. Garnishee order is applicable for: credit balance in OD and not for cheque sent for collection.
145. Bank Guarantees are issued as per provisions of : Indian Contract Act
146. cheque truncation means: converting physical cheque to electronic image and stopping physical flow
of a paper cheque. 660_ Foreign currency paid to taxi driver, shop keeper, can be accepted by: Authorised
persons.
147. A bank cannot acquire either as owner or as pledgee shares in a company more than:. 10 % of paid
capital of the company or 10% of the•paid up capital and reserves of the bank, whichever is lower.
148. For formation of a company, Registrar of Companies will issue : certificate of incorporation
149. There is a joint account in the name of A & B payable to either or survivor. On the death of A, the
amount will be payable to (a) nominee (b) B, the survivor.
150. Co is in liquidation, funds are at the disposal of : Liquidator
151. Guardian appointed by will of the father is called: testamentary guardian
152. The bill is dated 15/03/04, the date of acceptance: 20/03/04. The bill returned unpaid on
25/03/04. The limitation period will be available up to : 25/03/07
153. Which of the following documents does not constitute document of title to goods:Airway bill
154. DD can be revalidated within: any time (practice may differ In different banks)
155. Which crossing is a Special Crossing : Name of Bank is written in the cheque with or without parallel lines
156. Supervision of banks is done by RBI under which act: RBI Act / BR Act / Jilani Committee Report / NI
Act: Banking
Regulation Act
157. A minor is aged 15 years, who is illiterate. Which type of self operated a/c can be opened -SB/ RD / FD
none
158. Which of the following can open SB a/c? State Electricity Board/ Indian Bank Association/ Municipal
corporation: Indian Bank Association.
159. During death claim settlement for a locker with nomination, you find one sealed packed. What you will
do: Deliver the sealed packet without opening it.
160. In a Flying club, the Secretary & Treasurer are authorized to sign. A Cheque is presented for payment across the
counter. In between it has been informed that Secretary has died, what you will do? :Will be paid, if otherwise in order
161. Revival of limitation for recovery of a time barred loan is possible by: obtaining fresh promise to pay
under provisions of Indian Contract Act.
As per Supreme court decision, HUF cannot be a partner because: HUF is not a natural or legal person
162. As per Prevention of Money laundering Act, preservation of records relating to closed accounts upto:
5 yr from date of closure of account.
163. Banks can provide information about the customer to another Bank: General in nature, without any
responsibility
164. Board of Directors want to borrow money in excess of paid up capital and reserves of the company:
can be done through a resolution passed by shareholders in the general meeting
165. Other than aBill of exchange or promissory note, the documentwhichwas executed abroad is required to bestamped
on
its arrival in India within: 3 months of its arrival
166. Administrator is appointed in case of: to realize assets and pay off liabilities of a person who has died
without writing a will.
Under Ombudsman scheme, which type of case not entertained?: advocate representing the customer
167. Which of the following is not a valid cheque for payment by the bank-l)different ink & handwriting 2)
cheque with prior date 3) cheque with impossible date 4) Mutilated cheque: Mutilated cheque
168. The liability of the drawer of bills of exchange is prime till it is not accepted by the drawee after that
prime liability becomes of Drawee.
169. Whether Pvt Ltd. Co. can be partner with Partnership Firm: Yes
170. Provision on standard assets to be shown in balance sheet in other liabilities and provisions.
Provision for NPA is deducted from gross advances.
e
171. Counterfeit note received at the counter what to be done?: Impound the currency note.
172. No noting on currency note, directions issued by RBI under section 35A of BR Act.
173. Cross cheque can be paid at counter if presented by other bank.
174. Payments of a forged draft.Who will lodge FIR paying or collecting bank: Paying Bank.
175. Borrowing powers of board of directors are contained in: Articles of Association
176. Locker can be broken open after notice to the hirer if the same is not operated for:more than three years for
mediur-n risk category or one year for a higher risk category, and the locker-hirer does not respond nor operates the
locker.
177. If a complainant is not satisfied with the award or his complaint is rejected by the Banking ombudsmen, he can
prefer an appeal to Deputy Governor, RBI within: 30 days of the of the date of receipt of communication regarding
award or rejection of the complaint.
178. An account was opened on 24.11.2007 and the cheque book was issued on 30.11.2007. Two
cheques dated 18.11.2007 & 22.11.2007 are presented for payment on 08.12.2007. What should the bank
do?: The cheques can be passed if otherwise in order.
179. In case of wrongful dishonour of cheque, bank is liable to: account holder only
180. Who can seek information under.Right to Information Act: Any citizen of India can ask for information
181. The Garnishee Order is applicable on the account of a customer when the relationship between
banker customer is: Debtor & Creditor.
182. A private limited company with Registered office at Bangalore has raised loan froma branch located at
Mumbai. For creating equitablemortgage, title deeds can be deposited at: Mumbai, Kolkatta, Chennal or any other
notified place.
183. A cheque is presented for payment in which amount in figures ismentioned as Rs 10,000 whereas the amount in
words ismentioned as Rs Ten lakh only. In terms of section 18 of the NI Act, what should the bank do?: The amount
written in words should be paid.
184. A cheque of Rs.4700/- was presented for payment when the balance in the account was Rs. 4000/-. On being
returned for insufficient funds, the presenter enquired the balance and then deposited Rs.1000/- in the account.
Thereafter, the cheque was passed. The drawer of the cheque has lodged claimagainst the bank. Is the bank liable?:
Yes, the bank is liable for breach of secrecy.
185. When a letter is signed by the borrower and based on that letter bank delivers the document of title to
goods to the borrower, such letter is called as: Trust Receipt
186. How much charges are charged in addition to normal collection charges and out of pocket expenses
for providing instant credit facility for outstation cheques:Nil
187. A limited company has registered office at Chennai whereas loan has been raised from bank branch
at Mumbai. The charge will be registered with the ROC at: Chennai
188. A partnership firm conducting business other than the banking business has more than 20 members
as partners. Whether this is allowed?: Such association is called illegal association as per Companies Act
189. Under Prevention of Money Laundering Act, banks are required to send cash transaction report in
respect of cash deposit or withdrawal of more than Rs 10 lakh in a month from one account within: 15 days
from the close of the month.
190. Who is primarily liable on Bill of exchange which has been accepted?: Acceptor (Drawee) of the
Bill.
191. A cheque crossed specially to a bank is presented by the same bank to paying bank for cash
payment. What should the paying bank do? Bank can make cash payment.
192. Who can make nomination in the deposit account of a minor?: Guardian on behalf of the minor.
193. Who can be a nominee?: Only an individual
194. If a depositor dies, payment to nominee or legal heirs should be made within: 15 days of
completion of formalities.
195. What is the relationship between bank and customer if he has left certain goods with the bank by
mistake: Bank is trustee and Customer is beneficiary
196. Appeal against the award of the Banking Ombudsman can be made to Deputy Governor, RBI within
days of the receipt of copy of award from the Ombudsman: 30 days
197. A cheque was dishonoured despite sufficient balance in the account. The bank will be liable to:
Drawer of the cheque and not to the payee.
198. Maximum amount of fine under section 138 of N I Act for dishonour of cheque due to insufficient
funds is: twice the amount of cheque.
199. Banks print cheque books having similar particulars. The format of cheque is prescribed by which Act : It is a
practice
200. Bearer uncrossed cheque can be paid to whom: To the bearer
201. Who is appointed to tackle public complaints against the public authorities :Ombudsman
202. On, other than a negotiable instrument, what is the time period for payment of stamp duty, if the
document is executed outside India : 3 months
203. May I help you counter is to be provided by bank branches other than : Small branches
204. The facility of nomination is not available to Trust account because it is account : Non-individual
205. In case of a jointly operated joint account, the nominee can obtain payment, when : none of the account holder is
alive
206. Which crossing is not a general crossing :When name of bank is written within or without parallel lines.
207. The true owner of a cheque has been deprived his right by collection of the cheque for a different
person. This is called : Conversion
208. A bank branch receives a counterfeit note of Rs.1000, which customer wants back. What the bank
should do : Impound the currency note but credit full amount to customer. Receipt not to be issued to
depositor.
209. When rate of interest is expressed by adjusting the impact of inflation, this is called : Real rate of
Interest
210. Banks can ask for deposit of advance rent on hiring a locker for a period up to : 3 years
211. The drawer of a cheque wants that the endorsee should not get a defect free title when he receives an
endorsed cheque.What type of crossing would be required : Not-negotiable crossing.
212. The crossing on a cheque is required to be cancelled.Who can do so: Drawer

Prime Minister's Employment Generation Programme (PMEGP)

Prime Minister's Employment Generation Programme (PMEGP)
1. Created by: merger of Rural Employment Generation Programme ( REGP) with Prime Minister Rozgar
Yoj a n a (PM RY).
2. Applicability: Throughout India.
3. Objectives: To generate employment opportunities in rural as well as urban areas of the country through
setting up of new micro enterprises.
4. Eligibility: (a) Age: Any individual, above 18 years of age (b) Income: No income ceiling
5. Educational Qualification: No minimum or maximum qualification for projects up to Rs 10 lakh in the case of
industry and up to Rs 5 lakh for business or service sector. In case project cost is more than Rs 10 lakh in the
manufacturing sector and above Rs. 5 lakh in the business or service sector, the beneficiaries should be at least
VII! standard pass.
6. Assistance under the Scheme is available only for new _projects.
7. Only one person from one family is eligible for obtaining financial assistance for setting up of projects
under PMEGP. The 'family' includes self and spouse.
8. Project cost: (a) Maximum cost of the project under manufacturing sector is Rs. 25 lakh and under
business/service sector is Rs. 10 lakh.
9. Subsidy (Margin Money):
a. General category borrowers: 15% of project cost in urban areas and 25% in rural areas;
b. Special category: 25% in urban areas and 35% in rural areas. (Special category means including SC /
ST, OBC, Minorities,Women, Ex servicemen, Physically handicapped, NER, Hill and Border areas etc.
c. Subsidy provided by KVIC
d. Subsidy should be kept in the Term Deposit Receipt of three years at branch level
e. No interest will be paid on the TDR and no interest will be charged on loan to the corresponding
amount of TDR.
f. Margin money (subsidy) will be credited to the Borrowers loan account after three years from the date
of first disbursement to the borrower/institution, by the Bank.
g. In case the Bank's advance goes 'bad' before the three year period, due to reasons, beyond the
control of the beneficiary, the Margin Money (subsidy) will be adjusted by the Bank to liquidate the loan
liability of the borrower either in part or full.
h. Margin Money (subsidy) will be 'one time assistance', from Government. For any enhancement of credit
limit or for expansion/modernization of the project, margin money (subsidy) assistance is not available.
i. Margin Money (subsidy) assistance is available only for new projects sanctioned specifically under
the PMEGP. 10_ Borrower's Margin: 10% in general category and 5% in special category.
11. Collateral Security: No collateral security for projects involving loan upto Rs. 10 lakh.
12. Repayment schedule may range between 3 to 7 years after an initial moratorium as may be prescribed
by the concerned bank/financial institution.
13. Implementing Agencies: PMEGP will be a central sector scheme to be administered by the Ministry of
Micro, Small and Medium Enterprises (MoMSME). The Scheme will be implemented by Khadi and Village
Industries Commission (KVIC) which will be the single nodal agency at the national level.
14. Identification of beneficiaries: The identification of beneficiaries will be done at the district level by a Task
Force consisting of representatives from KVIC/State KVIB and State DICs and Banks

Limitation period of various documents ..Very Important

Limitation period of various documents is given below :

Description  &Period of Limitation


Temporary Overdraft without DPN 3 years from date of loan
Demand Loan 3 years from the date of loan
Demand Promissory Note 3 years from date of DPN
Bill of exchange_payable on demand 3 years from date of Bill.
Usance bill of exchange or promissory note 3 years from the due date of the bill or PN •
-Suit for Money_ Decree 3 years from the date right is due
Term Loans payable by instalments 3 years from due date of each instalment . .
Mortgage 12 years from the due date of the loan
Right of foreclosure by the mortgagee 30 years
Right of redemption 30 years
Cash credit against hypothecation or overdraft 3 years from the date of document.
Cash Credit Pledge Not applicable
Any suit by State/Central Government 30 years from the date when limitation would start
Deposit like SB, CA, FD with a bank 3 years from date of demand
Execution of Decree 12 years from the date of decree
Recovery of loss caused by fraud 3 years from the date of detection of fraud
Claim under Consumer Protection Act 2 year from the date light accrues
Dishonour of cheque under sec 138 of NI Act 1 month from the date right accrues
Appeal to High Court against Lower court 90 days from date of decree
Appeal to other courts on the decree at Lower court 30 days from date of decree

Bill of Exchange

Bill of Exchange
Demand Bill: A bill Of exchange payable on demand or at sight or on presentment is called Demand Bill.
Usance Bill: A bill of exchange payable after some time is called Usance Bill.
Documentary bill: which is accompanied by document of title to goods like railway receipt, bill of lading, etc.
Clean bill: is one which is not accompanied by any document of title to goods.
Inland bill: which is drawn or made in India and is either payable in India or on a person resident in India.
Foreign bill: is one which is not an Inland Bill i.e. it is drawn outside India or if drawn in India is payable outside India on a person resident outside India. Foreign Bills are issued in more than one part.
Accomodation Bill: means a bill issued without consideration and dealing in such bills is called kite flying

SECONDARY MARKET AND ITS MAIN PRODUCTS ...Jaiib

SECONDARY MARKET AND ITS MAIN PRODUCTS
Secondary market refers to a market where securities are traded after being initially offered to the
public in the primary market and/or listed on the Stock Exchange. Secondary market comprises of
equity markets and the debt markets. The secondary market provides an efficient platform for
trading of securities by the investors. For a company also, the secondary equity markets serve as a
monitoring and control mechanism through price information that guides management decisions.
Equity Market : Equity is the common ownership interest of shareholders in a company with
various kinds of equity shares as under:
Equity Shares: An equity share, commonly referred to as ordinary share also represents the form
of fractional ownership in which a shareholder, as a fractional owner, undertakes the maximum
entrepreneurial risk associated with a business venture. The holders of such shares are members
of the company and have voting rights. A company may issue such shares with differential rights as
to voting, payment of dividend, etc.
Rights Shares: The issue of new securities to existing shareholders in the ratio of their existing
holding of shares.
Bonus Shares: Shares issued by the companies to their shareholders free of cost by capitalization
of accumulated reserves from the profits earned in the earlier years.
Preferred Stock/ Preference shares: Owners of these kinds of shares are entitled to a fixed
dividend or dividend calculated at a fixed rate to be paid regularly before dividend can be paid in
respect of equity share. They also enjoy priority over the equity shareholders in payment of surplus.
But in the event of liquidation, their claims rank below the claims of the company's creditors,
bondholders / debenture holders.
Cumulative Preference Shares. A type of preference shares on which dividend accumulates if
remains unpaid. All arrears of preference dividend have to be paid out before paying dividend on
equity shares.
Cumulative Convertible Preference Shares: A type of preference share whera the dividend
payable on the same accumulates, if not paid. After a specified date, these shares will be converted
into equity capital of the company.
Participating Preference Share: The right of certain preference shareholders to participate in
profits after a specified fixed dividend contracted for is paid. Participation right is linked with the
quantum of dividend paid on the equity shares over and above a particular specified level.
Debt Market
Debentures: An instrument issued by a company bearing a fixed interest rate payable half yearly
on specific dates and principal amount repayable on particular date on redemption. Debentures are
normally secured/ charged against the asset of the company in favour of debenture holder.
Bond: A negotiable certificate evidencing indebtedness. It is normally unsecured issued by a
company, municipality or government agency. A bond investor lends money to the issuer and in
exchange, the issuer promises to repay the loan amount on a specified maturity date. The issuer
usually pays the bond holder periodic interest payments over the life of the loan. The various types
of Bonds are as follows :
Zero Coupon Bond: Bond issued at a discount and repaid at the face value. No periodic interest is
paid. The difference between the issue price and redemption price represents the return to the
holder. The buyer of these bonds receives only one payment, at the maturity of the bond
Convertible Bond: A bond giving the investor the option to convert the bond into equity at a fixed
conversion price.
Security Receipts: Security receipt means a receipt or other security, issued by a securitisation company or
reconstruction company to any qualified institutional buyer pursuant to a scheme, evidencing the purchase or
acquisition by the holder thereof, of an undivided right, title or interest in the fmancial asset involved in
securitisation.
INDIAN DEPOSITORY RECEIPTS (IDRs) As per the definition given in the Companies (Issue of Indian
Depository Receipts) Rules, 2004, IDR is an instrument in the form of a Depository Receipt created by the
Indian depository in India against the underlying equity ' shares of the issuing company. In an IDR, foreign
companies would issue shares, to an Indian Depository (say National Security Depository Limited — NSDL),
which would in turn issue depository receipts to investors in India. The actual shares underlying the IDRs
would be held by an Overseas Custodian, which shall authorise the Indian Depository to issue the IDRsil.
Overseas Custodian : It is a foreign bank having branches in India requiring approval from Govt. and
registration with SEBI.
Approvals for issue: It requires approval from SEBI and application can be made 90 days before
the issue opening date.
Listing : IDRs can be listed on Indian stock exchanges and would be freely transferable.
Eligibility conditions for overseas companies to issue IDRs: Capital : The overseas company
intending to issue IDRs should have paid up capital and free reserve of atleast $ 100 million.
Sales turnover : Average turnover of $ 500 million during the last three years. Profits/dividend :
Profits in the last 5 years and should have declared dividend of at least 10% each year during this
period. Debt equity ratio : The pre-issue debt equity ratio should not be more than 2:1. Size:
During a year should not exceed 15% of the paid up capital plus free reserves. Redemption :
IDRs would not be redeemable into underlying equity shares before one year from date of issue.
Denomination : IDRs would be denominated in Indian rupees, irrespective of the denomination of
underlying shares.
SEBI GUIDELINES ON IDRs : Overseas Companies should be listed in their home countries to
become eligible for issuing IDRs. Minimum size should be Rs.50 cr and minimum application
amount Rs.2 lac. Minimum subscription level should be 90%, otherwise amount has to be
refunded. Interest for delay beyond 8 days 15% p.a. Issue prices should be based on (a) earnings
per share pre-issue for last 3 years, (b) price by earnings ratio, (c) average return on net worth in
last 3 years and (d) net assets value per shares based on last balance sheet.
QUALIFYINGINSTITUTIONALBUYERSQFI is defined byRBI, tomean the non-resident investors, other
than SEBI registered FlIs and SEBI registered FVCIs, whomeet the KYCrequirements of SEBI.OnlyQFIs
fromcountrieswhich are FATF compliant and with which SEBI has signedMOUs under the TOSCO
framework, are eligible to invest in equity shares under this scheme.
Eligible instruments and transactions—QFIs can invest through SEBI registered Depository
Participants (DPs) only, in (a) equity shares of listed Indian companies through recognized brokers on
stock exchanges in India and (b) in equity shares of Indian companies which are offered to public in India
in terms, of the relevant and applicable SEBI guidelines/regulations (c) QFIs can also acquire equity
shares by way of rights shares, bonus shares or equity shares on account of stock split / consolidation or
equity shares on account of amalgamation, demerger or such corporate actions.
Limits - The individual and aggregate investment limits forQFIs shall be 5%and 10%respectively of paid up
capital of the Indian company (It is over and above FII and NRI investment ceilings under the Portfolio
Investment Scheme for' foreign investment in India. These limits forQFI investment shall be within such
overall FDI sectoral caps. The onus ofmonitoring and compliance of these limits shall remain jointly and
severally with respectiveQFIs, DPs and the respective Indian companies (receiving such investment).
Reporting—In addition to reporting to SEBI, DPswill also ensure reporting to RBI in amanner and format as
prescribed byRBI fromtime to time.
GLOBAL DEPOSITORY RECEIPTS & AMERICAN DEPOSITORY RECEIPTs
1. A GDR or ADR means any instrument in the form of a Depository receipt or certificate by
whatever name it is called, created by the Overseas Depository Bank (ODB) outside India and
issued to non-resident investors against the issue of ordinary shares or foreign currency convertible
bonds of issuing company.
2 These are negotiable instruments denominated in US $ representing a non-US company's
publicly traded, local currency equity shares.
3 The issue of such instruments involves the delivery of ordinary shares of an Indian company to a
domestic custodian bank in India, which in turn instructs an overseas depository bank to issue
Grig/ADR on a predetermined ratio.
4 The GDR/ADR can be sold outside India in their existing form. The underlying shares (arising
after redemption of GDR/ADR) can also be sold in India.
5 While ADRs are listed on the US stock exchanges, the GDRs are usually listed on a European
stock exchange.
6 A GDR/ADR may evidence one or more GDS/ADS. Each GDS/ADS represent underlying share of
Issuing company.
PARTICIPATORYNOTE : A Participatory note (also called Off-shore Derivative Instrument) is a
financial derivative instrument issued against an underlying security (shares). It allows its holder, to
get dividend or capital gains, earned from the underlying security, although some of the holders may
not be eligible to trade in stock markets in India. Other such instruments are equity-linked notes,
capped return note, participatory return notes and investment notes. The PNs are of two types i.e.
spot-based and future-based (i.e. off-shore derivative instruments).
Users of participatory notes : Participatory note is used by investors or hedge funds (risk taking
investment companies using high risk techniques to make huge profits and not eligible for
registration with SEBI as FlIs), which are not registered in India with SEBI, to invest in securites or
for trading on a stock exchange (say BSE or NSE). The hedge funds include the funds from US or
European countries.
MUTUAL FUNDS:Mutual funds are associations or trusts of members of public who wish to make
investments in the financial instruments or assets of the business sector or corporate sector for the
mutual benefit of its members.
The fund collects the money of these members from their savings and invests them in a diversified
portfolio of financial assets with a view to reduce the risks and to maximise their income and capital
appreciation for distribution to its members on a pro-rata basis.
They enjoy collectively the benefit of expertise in investment by specialists in the trust which single
individual himself could not. Mutual fund is thus a concept of mutual help of subscribers for
portfolio investment and management of these investments by experts in the field.
These funds are close ended with contributions collected during and for a definite time frame or
open ended under which the units are purchased and sold throughout the year and a member can
enter the scheme or walk out of it, any time. Funds can also be income funds, growth funds or tax
saving scheme funds. They can also be classified from deployment/investment aspect.
MUTUAL FUND TERMS :
Asset Management Company: A company formed and registered under the Companies Act 1956
and approved as such by the SEBI to manage the funds of a mutual fund. Under an agreement
(with the trustees of the Mutual Fund), an AMC undertakes to formulate mutual fund schemes,
distribute units, invest the funds in capital / money markets and distribute income as per
agreement.
Balanced fund: This fund invests in bonds and blue chip stocks to conserve capital. It pays
reasonable income capital appreciation.
Back-end load: A fee charged by a mutual fund from unit holders at the time of redemption of
units.
Close-ended scheme: A scheme where funds are raised for a fixed period. The scheme is wound
up after that period and funds are returned with capital appreciation to unit holders. Normally, a
close-ended scheme is listed on a stock exchange.
Discount/premium: The difference between the unit price and the net asset value expressed in
percentage terms. If the price is high than the NAV, the units stand at a premium and if the price is
lower than the NAV, the units are sold or purchased at a discount.
Expense ratio: The annual expenses of a fund, including the management fee, administrative
costs, divided by net assets.
Equity income fund: A portfolio whose focus is on stocks with high-dividend yields. Similar to
growth and income portfolios except that these funds usually place more emphasis on dividend
yield.
Fixed income funds: A mutual fund which primarily invests in fixed income securities like bonds
and debentures. The objective is to provide monthly or yearly income to investors.
Front end load : A sales fee charged at the time of purchase.
Growth and Income fund: A fund holding large, established companies offering the potential for
both appreciation and dividend income.
Growth fund: A growth fund aims at rapid capital appreciation of funds by making investments in
those securities which are expected to show large appreciation quickly.
Income fund: An income oriented fund aims at giving regular income to its investors so long as the
scheme is in operation.
Index fund: A mutual fund which mirrors the performance of a particular index. Such a fund
invests all or nearly all its funds in stocks listed on a particular exchange and included in the index
of that exchange (such as BSE sensex or National).
Management fees: The percentage charge for, portfolio management. This expense, which is
stated in the fund's prospectus, may decline proportionately as the fund's asset base increases.
Market capitalisation: The total market value of a firm used as a measure of size. It is determined
by multiplying the current price by the number of shares outstanding. .
Net asset value: The price or value of one share of a fund. It is calculated by summing the quoted
values of all the securities held by the fund, adding in cash and any accrued income and
subtracting liabilities and dividing the result by the number of shares outstanding. Fund companies
compute the NAV once a day based on closing market prices.
Net assets: The total value of fund's cash and securities less its liabilities or obligations.
Offshore fund: A fund established outside the country.
Open ended scheme: A scheme is the one which continuously offers its units and buys them back
from investors.
Portfolio manager: A professional investment manager who conducts securities business
according to stated objectives and by using sophisticated investment management
approach.
Pure no-load fund: A mutual fund that has neither front nor back load.
Rollover risk: A danger faced by holders of short term debt including money market funds. If
interest rates are falling, these investors must roll-over any maturing obligations into successively
lower-yielding instruments.
Tax saving schemes: A mutual fund scheme formulated under the Govt of India guidelines on
equity-linked savings schemes. Investors under this scheme are entitled for certain tax exemptions.
DEPOSITORY SYSTEM
Depository : A depository is an organisation which holds securities of investors in electronic form at the
request of the investors through a registered
Depository Participant: At present there are 2 Depositories viz. National Securities Depository
Limited (NSDL) and Central Depository Services (I) Limited (CDSL) are registered with SEBI. The
minimum net worth stipulated by SEBI for a
 Depository is Rs. 100 crore. Depositories provide services related to transactions in securities.It
can be compared with a bank, which holds the funds for depositors. Benefits of depository services
 A safe and convenient way to hold securities;Immediate transfer of securities;No stamp duty on
transfer of securities;Elimination of risks associated with physical certificates such as bad delivery,
fake securities, delays, thefts etc.;Reduction in paperwork involved in transfer of securities;
Reduction in transaction cost;No odd lot problem, even one share can be sold;Nomination facility; i
 Change in address recorded with DP gets
registered with all companies in which investor holds securities electronically eliminating the need to
correspond with each of them separately;
 Transmission of securities is done by DP eliminating correspondence with companies;
 Automatic credit into demat account of shares, arising out of bonus/split/consolidation/merger
etc.
DEMATERIALISATION (DEMAT)
An investor's portfolio of paper securities is subject to problems such as mutilation of share
certificates, loss of certificates, forged certificates, bad delivery etc. These problems can be taken
care of through the medium of `Depository' by providing paperless electronic or dematerialised
security transactions:What is dematerialization: Dematerialisation is a process by which the paper
certificates of an investor are taken back by the company/registrar and actually destroyed and an
equivalent number of securities are credited in electronic holdings of that investor.
Depository and its role: Depository is like a bank, where securities are held in electronic form,
scrips are collected and receipts and record of the account are given, to the investor.
Depository participants (DPs): DP are shareholders' representative (like brokers on SEs) and
provide a link between the depository and the client. The transactions for demat stock, with a
depository are carried by opening an account with and through the depository participant.
Rematerialisation: When the electronic holdings are converted back into paper certificates by
printing new certificates with a new certificate numbers, the process is called rernaterialisation.
Benefit : The system takes care of problems of bad deliveries, lost share certificates, postal delays
and transfer related problems, reduction in the incidence of fake certificates and forged transfer
deeds. It facilitates speedier settlements and increased efficiency at lower costs.

Different Types of Banking Risk

JAIIB::

Different Types of Banking Risk
The banks are exposed to (1) Liquidity risk (2) Interest rate risk (3)Market risk (4) Credit risk (default risk)
and (5) Operational risk. These risks can be further broken up in various other types of risk as under:
1. Liquidity risk
This is the risk arising fromfunding of long termassets by short termliabilities or funding short term assets by
long termliabilities.
(a) Funding liquidity risk: It is the inability to obtain funds tomeet cash flow obligation when these
arise.(Payment of a termdeposit which was used to fund a termloan and a TL which has notmatured as yet,
fully).
(b) Funding risk : The risk arises fromneed to replace net outflows due to unanticipated withdrawal or nonrenewal
of deposits.
(c)Time risk : This risk arises fromneed to compensate for non-receipts of expected inflows of funds i.e.
performing assets turning into nonperforming assets due to which recovery has not come and deposit that
funded that loan is to be returned.
(d) Call risk : This risk arises due to crystallization of contingent liabilities.
2. Interest rate risk
This is the risk arising fromadversemovement of interest rates during the period when the asset or liability
was held by the bank. This risk affects the net interestmargin ormarket value of equity.
(a) Gap ormismatch risk: It arises frommismatch fromholding assets and liabilities and off balance sheet
items with differentmaturities. For example, an assetmaturing in 4 years; funded froma liabilitiesmaturing in
2 years' period.
(b) Yield curve risk : In a floating interest rate situation, banksmay adopt two ormore benchmark rates for
different instruments. Different assets based on these different benchmark rates,may not yield a parallel
return (as theremay be variations in the yield of the benchmark).
Hence their yield curve would be different. For example, if a deposit is raised on a floating rate linked to 91
days treasury bill and another deposit is raised on a floating rate linked to 382 days, the cost to the bankmay
be different for these two deposits.
(a) Basis risk : The interest rates on different assets or liabilitiesmay change in differentmagnitude which is
called basis risk. For example in a declining interest rate scenario, the rate of interest on assetsmay be
declining in a differentmagnitude than the interest rate on the corresponding liability, whichmay create
variation in net interest income.
(b) Embedded option risk :When a liability or asset is contracted (i.e. a deposit is obtained or a loan is
given) with a call option for a customer (i.e. option to obtain payment of deposit beforematurity ormake
payment of the loan before becoming due), itmay give rise to embedded option risk. Itmay affect the net
interestmargin.
(c) Reinvestment risk: When bank gets back the repayment of a loan or an investment, there is
uncertainty about the interest rate at which the cash inflow can be reinvested. Hence, anymismatch in cash
flows exposes the bank to variation in net interest income.
(a) Net interest position risk:Whenmarket interest declines and a bank hasmore earning assets than
paying liabilities, the bank is exposed to reduction in NII, which is called net interest position risk.
3. Market risk or price risk : It is the risk that arises due to adverse movement of value of the
investments / trading portfolio, during the period when the securities are held by a bank. The
price risk arises when an investment is sold before maturity.
(a) Foreign Exchange risk :When rate of different currencies fluctuate and lead to possible loss to the
bank, this is called a forex risk.
(b) Market liquidity risk:When bank is not able to conclude a large transaction in a particular instrument
around the current market price (say bank could not sell a share at a higher price which could have been
done but for poormarket liquidity this could not be done), this is called, market liquidity risk.
4. Default risk or credit risk : The risk to a bank when there is possibility of default by the counter
party (say a borrower) tomeet its obligation. Credit risk is prevalent in case of loans.
(a) Counter-party rkk : Counter party risk is a variant of credit risk. It arises due to non-performance of the
trading partners due to their counterparty's refusal or inability to perform. It is basically related to trading
activity rather than credit activity.
(b) Country risk: When non-performance by a counter party is due to restrictions imposed by the
country of the counter party (non-performance due to extemal factors).
5. Operational risk : It is the risk that arises due to failed internal processes, people or systems or from
external events. It includes a no. of risk such as fraud risk, communication risk, documentation risk,
competence risk,model risk, cultural risk, external events risk, legal risk, regulatory risk, compliance risk,
system risk etc. It does not include strategic risk or reputation risk.
(a) Transaction risk : It arises fromfraud or failed business processes or inability tomaintain business
continuity andmanage information.
(b) Compliance risk: It is the risk of legal or regulatory sanction or financial loss or reputation loss that a
bankmay suffer as a result of bank's failure to comply with applicable laws or regulations.
6. Other risks : Thesemay include strategic risk or reputation risk.
(a) Strategic risk : Arises due to adverse business decision, improper implementation of decisions etc.
Reputation risk: It is the risk that arises fromnegative public opinion. It can expose an institution to litigation,
financial loss or decline in customer base

Mortgage

Mortgage

. Mortgage is defined in Section 58 of the Transfer of Property Act.

2. Mortgage is the transfer of interest in a specific immovable property, for the purpose of securing an existing or future debt or

for the performance of an engagement which may give rise to a pecuniary liability. The person creating the mortgage is called as

the mortgagor and the person in whose favour mortgage is created (bank) is called as the mortgagee.

3. Immovable property, means land and things attached or permanently fastened to the earth.

4. Types of Mortgage: There are six types of mortgages namely (i) Simple Mortgage (ii) Mortgage by Conditional Sale (iii)

Usufructuary Mortgage (iv) English Mortgage (v) Mortgage by Deposit of title Deeds (Equitable Mortgage) and (vi). Anamalous

Mortgage. Of these, all • mortgages except Equitable Mortgage require registration with the Registrar of Assurances.

5. Registered Mortgage: In the case of registered mortgage (also called legal mortgage) first a mortgage deed is written which is

stamped as per Stamp Act of the concerned state. The deed is then executed in the presence of two witnesses. Thereafter, in

terms of the Indian Registration Act 1908, it is to be registered with the Registrar of Assurances (Sub Registrar) within 4 months of

the execution.

6. Simple Mortgage: In simple mortgage the mortgagor makes himself personally liable to pay the debt and agrees that in the

event of failing to pay according to his contract, mortgagee can get the property sold through the intervention of the court. If after

sale of property some debt is still outstanding, the borrower shall be- personally liable for the outstanding amount. Neither the

possession nor ownership of the property is transferred to the mortgagee. The mortgagee cannot exercise the right of foreclosure.

7. Mortgage by Conditional Sale: The mortgagor ostensibly sells the property to the mortgagee upon the condition that if the

debt is paid in time the property will be transferred back to him and in case of nonpayment within the specified time the

transaction would become a real sale. There is no personal liability of the mortgagor. In case of default, the mortgagee can exercise

his right of foreclosure through court.

8. Usufructuary Mortgage: In this mortgage, possession of the property is transferred to the mortgagee. The mortgage money is

recovered through income of the mortgaged property. There is no personal liability of mortgagor.

9. English Mortgage: As in the case of simple mortgage, the mortgagor undertakes personal liability to pay the debt. He transfers

the ownership of mortgaged property to the mortgagee upon a condition that property must be transferred back to him on

payment of debt. Mortgagee can sell the mortgaged property even without the intervention of court.

Equitable Mortgage

1. Equitable Mortgage is called as Mortgage by Deposit of Title Deeds.

2. It can be created by mere deposit of title deeds of property with intention to borrow.

3 a.Title deeds should be deposited at Mumbai, Kolkata, Chennai ( Presidency Towns) or any other town notified by the State

Government in this regard. It is not necessary that the title deeds should be deposited with the branch or at the place where the

loan is being raised.

3 b.These can be deposited anywhere in India at a notified place.

it is not necessary that it should be within bank branch premises. Mortgagor can deliver the title deeds to an authorized

representative of the bank at mortgagor's residence or other place provided it is in a Notified Centre.

4. The property to be mortgaged may be located anywhere in India (For example, for property located in Delhi, title deeds can be

deposited at Chennai.

5. Equitable Mortgage does not require registration with Registrar of Assurances. But in case of a limited company, charge in

yespect of equitable mortgage under Section 125 of the Companies Act, 1956 must be registered with Registrar of Companies.

6. A title deed can be a sale deed, lease deed, partition deed, gift deed, deed of assignment, deed of relinquishment, or such

other documents. Agreement to sale is not a title deed.

7. Normally a bank should insist for original title deeds but in exceptional cases equitable mortgage can be. created even by

certified copy of the title deeds.

8. Property located in cantonment areas should not be accepted for equitable mortgage, without clearance from cantonment

authorities.

10.The bank should not part with the title deeds even for a short duration at the request of the mortgagor because if some other

creditor is induced to finance on the basis of title deeds, the bank may Lose priority over the mortgaged property.

11. No registration with Registrar of Assurance is required. For a company, registration with ROC within 30 days is required u/s

87 of Companies Act 2013. Under SARFAESI Act, registration with CERSAI.

12.Deposit can take place within Municipal limits of Presidency Towns (Kolkata, Chennai or Mumbai) or State Govt. Notified Towns.

It is not necessary that the place for deposit of title.deeds, should be bank branch premises

Legal Opinion and Search Report: Before accepting mortgage of immovable property, legal opinion should be

obtained that the property is fit for mortgage and search should be conducted in the records of Registrar /Sub

Registrar for at least 12 years to ensure that the property is free from prior encumbrance.

Priority of Mortgage: The priority of the mortgage is considered from the date of execution of the mortgage deed (in the case of

registered mortgage) or from the date of creation of mortgage by deposit of title deeds and not with reference to the type of

mortgage or date of registration.

Right of Redemption: Right of the mortgagor to get back his mortgaged property on repayment of the loan, is called as the right of

redemption. This is available in all types of mortgages.

Right of foreclosure: The right of the mortgagee to deny the mortgagor of the property to exercise his right of redemption i.e.

debarring the mortgagor for ever to get back the mortgaged property is called as the right of foreclosure. This right is available to

the mortgagee in case of mortgage by conditional sale.

Bcsbi recollected questions on 26.10.2019

Bcsbi recollected questions on 26.10.2019


1) Reason for termination of Bank customer relationship
2) where we can not perform right of set-off
3) net worth formula:
Capital + reserve - accumulated loss and depreciation like option
4) once a bearer always a bearer meaning
5) bank display on their website list of unclaimed deposit account:
Name and account no
Name and address
Name, address and account no
6) not a feature of social media marketing
Sharing experience
Giving opinion
Passive participation
Exchange of information
7) if 5L to 25 L loan then processing time
8) Active listening
9) quality of good listener
10) find odd one mobile banking services modes
IVR / SMS/ USSD/ STK Like
11) find odd one, features of holder in due course

12) find odd one, good delivery of services
Speed/ concern / accuracy  like that
13) wrongly issue credit card and charge 100. What BO will fine
100 + double the amount charged

Recollected questions international banking on 22.12.2019

Recollected questions international banking on 22.12.2019

International banking recollected question

1. mire than 15 questions in exchange rate calculation
2. Role of WTO
3. who is implementing Fema
4.wat are short term ecgc policy
5. wats s specific policy
6. baloon repayment
case study problm on l.c and cancellation and firward contract boking calculation
case study on int rate swap problm
FRA
Hiw int rate s fixed in loan against FCNR b. wether it can b given against funds in Nre

wether bank can int rat indepndently or as per RBi guidelined or certain rste over MCLR
amount repartiable from Nro to Nre
wether full amount can b repartiated in NRE acc
what s not role of exim bank chice are buyers credit, supplier credt, syndication loan
wat is time for scrutinixing documents choices r 5 working days 5 calender days 5 banking days

if due date falls on friday which s a holiday due to bharsth bandh wen it will fall due wether on sunday or saturday etc..
Deep question on advising bank wether once it is advised another advice s possibl.or not

study throughly role of front office back office mid office 3 case study wuestions

leading and laggingp

case study on Adr in role of banks invp

to chose the from choice which is capital account trabsavtion

Nri are not alowed to invest in Transferabl trading rights

Memory recalled questions of BFM June 2019

Memory recalled questions of BFM June 2019

1. WHAT IS NOSTRO ACCOUNT, QUESTION HAVING VERY CONFUSING DEFINATION
2. Case study on LC- question to find advising bank
3. Case study on LC- question to find negotiating bank
4. Case study on LC- question to find issuing bank
5. Case study on LC- question to find confirming bank
6. In LC nothing is mentioned and it should be considered which lc- answer was irrevocable
7. Case study  to find the best possible rate out of two banks rate for sending money abroad, whether tt selling rate, tt buying rate will be applicable
8. Case study to find the best possible rate out of two banks rate for sending money from FCNR deposit, answer none of these as FCNR is already in USD
9.  Case study on to find the best possible rate out of two banks rate tt selling rate, tt buying, currency buying/selling rate will be applicable
10.  Question related to Yield on bonds, numerical type
11. Leverage ratio calculation
12. Case study on TT buying rate to find the best possible rate out of two banks rate
13.  In stock of HQLA for the purpose of cap liquidity and coverage ratio
14. Notional transit period time- 25 days
15. Question can POA can send the remittance from NRE a/c – no
16. What is American style?
17. What is European option style
18. One question to calculate modified duration
19. Features of FIMMDA
20. Notice money time period- 2 to 14 days
21. Difference between CLN and CDS
22. Question to find the economic equity ratio
23. ONE question on at the money
24. One question of out of money
25. One question on in the money
26. Who developed FX clear- RBI, CCIL, SEBI, answer CCIL
27. Features of CBLO
28. What  is repo
29. Risk pricing related question to find the practical use of it out of options
30. Case study related to rating migration- %age change in the AAA, AA, B rate companies as compared to previous year- 3 questions were there
31. Role of Board of directors in management of risk, question was who makes policies, risk limits, system for the risk management
32. In the above question, who is responsible for implementation of the same
33. Penalty for not crediting the amount claimed by the correspondent bank, 1%, 2%, 3%,4%
34. Case study related to FC, NRI gets 20000USD and wants to get it credited in his NRE a/c is it possible- 4 option were given, correct one was  can be done by taking CDF
35. Capital charge for foreign exchange
36. Case study on NII- to find the %age change in NII when interest rate declines by 1% in given interest rates
37. Case study on NII- to find the %age change in NII when interest rate declines by .05% in given interest rates
38. Case study on NII- to find the %age change in NII when interest rate declines by 1% in assests in given interest rates
39. Question to find capital fund.
40. Questions to find the CRAR and RWA of Bank A and Bank B
41. Questions to make comparison of Bank A and B related to their asset liability management
42. key priniciples in Supervising review process of basel III
43. call option and put option case study to find whether the holder of call option will utilize the deal or not
44. call option and put option case study to find whether the holder of put option will have profit or loss by making the deal
45. impact of CRR

Cyber crime and fraud management recollected on 28.12.2019

Cyber crime and fraud management recollected on 28.12.2019


Recollected questions:
Cyber crimes are handled by which orgnanisation in india
Type 1 crime
Preventive control
Detective control
Detterant control
Logical control
Sections and their fine with imprisonment in years
Committes of it security ,it governance, it controls
Netra by which organisation
Fast flux
Stux net
Phising
Shoulder surfing
Digital signature
Oldest agency in india
Few questions on cert in
Passive attack
Active attack
Direct attack
In direct attack
Logic bomb
Zeus
India own operating system boss in under whom
Confidentiality
Availability
Integrity
Conventional crime
Cyber crime
Same features of conv and cyber crime
Tailgating
imp topics are  1differences between viruses and worm
2 it act
3 different types of cyber crimes
4 various types of cards
5 gate way payment
6 prevention and detection control
7 pss act
8 2 tier authentication
9 passive and active attacks
mostly questions from 2  and 3 and 4...units

 Cyber terrorism
1. Who Coordinates with Interpol in India ? - CBI
2. Which department was designated as Nodal Agency for Cyber Crime prevention - CERT-IN
3. What is the difference between Virus and Worm - Virus need human intervention to activate or multiply whereas worm automatically get multiplied
4. Worms are mainly used by hackers to - Occupy more space in the system/heavy usage of bandwidth in the network
5. One of the employee carefully watching the password entered by the Manager. What type of threat it is - Shoulder Surfing
6. Leaving a Logged in Computer by an employee - is human negligence
7. Hackers scans the computer pre attack to identify - Vulnerability in the system
8. Hackers inject worms/virus into the network to reach the target system and it - exploits the Vulnerability
9. Non updation of antivirus is - one of the major vunerability
10. One customer recieved a call in his mobile phone and the person posing himself as a bank manager collected the card credentials from him.This type is called - Phising
11. Online Banking sites are borne to what risk - Phising/IP spoofing
12. Data transfer between systems vide Network can be secured by - PKI
13. Customers can make sure that they deal with the authenticated website - by checking the Lock icon near the address bar
14.In https, S denotes - Secured/Security
15.This kind of worms directly attacks the root directory - Rootkits
16. This worms are really hard to detuct and delete - Rootkits
17. The compromised systems in the network are commonly termes as - Zombies
18. Customer security credentials were compromised by way of fraudulent SMS is called - smishing
19. The employees who try to hack their own company's site/find the vulnerabilities are called - White hat hackers
20.DDos - Distributed Denial of Service
21.Ransomware which blocks the access to the website demanding ransom for the same is - Denial of Service attack
22. Using same method for both encryption and decryption is called - symmetric encryption
23. Providing Last Login detail in Internet banking site is to - to detect any unauthorised usage earlier
24.Limits for retrying the passwords is - to avoid the unauthorised access
25. To safeguard from the Key Loggers attack - Use Virtual Key board to enter passwords
26.UTM stands for - Unified Threat Management
27.Setting up smoke detectors in the branch is - Detective Method
28.Placing Security guard in system room to avoid - Physical damage/attack on systems
29. Following the authorised person to enter into system room and making entry into the room is - Tailgatting
30.Dumbster Driving is a method - Searching for vulnerability in deleted files and data
31.FIrewall is - Intrusion Detection System
32.Authentication of electronic data/document can be assertained by - Digital Signature
33. When two or more persons illegally tries to enter into a critical room with single id/same id - Masquerading
34.Detection is normally - Post incedent
35. Post incident study mainly for the purpose of - study the impact of the attack and lessons for future prevention
36. Indian Agency working on Digital Forensics and Cyber security - C-DAC
37. OLTP refers to - On line Transaction Processing
38. OLTP is also termed as - Payment Gateway
39. Payment Gateway the Acquiring Bank to - Issuing bank through the Card Scheme to complete the transaction
40.Security Concerns arise in Payment Gateways are - At the User Level, Bank level and Merchant POS
41. Credit Card data theft through POS is falls under - Merchant PoS Security
42.Data encrypted using Private key can be decrypted by the public key available with - the Receiver
43. Cross verifying the Signature on the Slip against the Signature in the back side of the ATM card is doen by - the Merchant
44.Data should be secured in the following stages - Saved, Transit and Retrival
45.Intruder software in a network which attacks the data while in trnasit and thus commits data theft - Man in the Middle Attack
46. Captures a widows sessio for the purpose of data theft before it reaches the recipient is - Session Hijacking
47. Limits set for retrying of password is to avoid - Brute Force attack
48. ISSP stands for - Information System Security Policy
49.ICANN stands for - International Corporation for Assigned Names and Numbers
50.TLD stands for - Top Level Domain
51.Globally recognized set of rules defined for electronic records is - e-UCP
52.Technique used to redirect traffic from the infected device is called - Sinkholding
53. The technique which can intercept unencrypted data transit of mobile apps is called - Wi FI Snifing
54. This is one type of malware which doesnot affect the system/network - Ad-ware
55. This usually comes as a Pop up/add on screen which carries link for dubious websites - Ad-ware
56.EMV cards follow standard of - ISO/IEC No 7816
57. EMV cards follow this standard for Contactless card - ISO/IEC 14443
58. NFC is the technique used in contactless cards - Near Field Communication
59.PCI - DSS stands for - Plastic Card Industries - Data Security Standards
60. NFC cards works under - RFID Technology
61. Providing Access controls to employess based on roles/need is - Risk based Authentication
62. Seeking PIN to complete a transaction in PoS is - 2FA
63.SSL - Secure Socket Layering
64.SSL ensures - Encrypted link between a web server and a browser
65. Sending annoying messages to a person causing irritation/nuisance - Cyber Stalking
66. Black mailing a person using Computer/or network is - Cyber Extortion
67. Ransomware is type of - Cyber Extortion
68. Disputes on Domain names and protest are redressed globally by - UDRP
69. Phising/Vishing is type of - Cyber Cheating
70. Group of people attacks a Computer/ group of computers for propagating a objective - Cyber Terrorists
71. Hackers with common interest attack rival government's department site and database are - Cyber terrorists
72. ____ refers to the quality of secrecy associated with the data and the state of keeping an information asset secret - Confidentiality
73.____ refers to the state of remaining in the same format and not allowing for any tampering/manipulation - Integrity
74. ____ refers to the state o confirmation that the user has the authority to issue the command to the system - Authorisation
75. Quality of non denial, the stake holders are not permitted to denythe particular act of doing the act is - Non-repudiation
76. CAPTCHA refers to - Completely Automated Public Turing test to Tell Computers and Humans Apart
77. Placing letters in different sizes and styles which is hard to read by systems/robots is called - CAPTCHA
78. _______ is an important component for study and analysis to under the modus operandi of a Cyber Attack - Threat Vector
79. In cyber Crime, Threat landscape is denoted as - Study of entire overview of the network which was attacked
80. Conventional Crimes are - Physical crimes that involve thet of systems and hardware devices
81.Cyber Crimes are - System Crimes that involves data theft or tampering
82.Insider Attack Threat is - attack on the system/network by own employee without any permission/authentication
83.______ is the most dangerous attack in cyber crimes - Insider Attack
84. An employee copied and sold the sensitive information to a competitor concern is an example of - Insider Attack
85. Hackers scan the port/system and develop worm or codes to attack the same based on this - Vulnerability
86. ____ doesnot wait for any executable file to run for getting activated in the target system - Worm
87.____ refers to small piece of programs injected into the target system to spy on the activities - Spyware
88. Drones are classified as - Spying Devices
89. UAV stands for - Unmanned Aerial Vehicle
90. Most of the UAV used by the polic/defence authorities for - Survelliance purposes
91.The persons who are hired by companies to hack their own website/to identify the Vulnerability are - Blue Hat Hackers
92. System of effectively taking care of URL filterig, web-filtering, anti-virus, as all in one solution is referred as - Unified Threat Management
93. Force Log out option in Internet banking after certain time of Idleness is to guard the system against - Session Hijacking
94. Installing anti virus into the system is - Preventive Method
95.A statement used to create, alter, drop objects in a database is called - Data Definition Language
96. Fault Detection, isolation nad recovery are closely associated wiht - Detection Control
97. Installing Bio Metric devices to check unauthorised entry is - Physical Control
98. Unless properly logged, straightaway accessing the database through a SQL is termed as - Back end Access
99.IT Act 2008 describes the activity of hacking as a criminal activity in section no 66
100. IT Act 2000 came in force on - 17 October 2000
101. IT Amendment Act came into force on - 27 October 2009
101. IT Act consists of - 13 Chapters and 90 Sections
102. The Section which deals with cyber crimes as civil offence - Section 43
103. The Section deals with cyber crimes as Criminal Offences - Section 66
104. IT Amendment Act included the following which is not in the IT Act 2000 - Electronic Signature
105. Electronic Signature has been dealt in - Section 15
106. Under Section 43A, if any body corporate handling any sensitive personal data is negligent in implementing and maintaining reasonable security the compensation may go upto - five crore rupees
107. Under Section 43, if one found guilty on Data theft/alters/destroys the same the penalty/compensation may go upto - One Crore rupees
108. Tampering with Computer Source Documents - Section 65
109. Punishment under Section 65 may go upto - Three years imprisonment and extend upto Two Lakhs Fine
110. Computer Related offences which were dealt under section 43 can also be dealt as criminal offence under section - 66
111. Punishment under Section 66 may go upto - two three years and/or fine upto five lakhs rupees
112. Crime of Cyber Stalking ( sending electronic messages for the purpose of causing annoyance/inconvenience/decieve/mislead the recipient) may lead to - two three years imprisonment
113. Identity Theft is dealt under Section - 66c
114. Punishment of Identity Theft - may extend to three years term and/or fine upto One lakhs rupees
115. Puishment for Cyber Cheating - may extend to three years term and/or fine upto One lakhs rupees
116. Cyber Cheating is dealt under - Section 66D
117. Punishment for Cyber Terrorism may extend upto - Life time Imprisonment
118. Cyber Terrorism is dealt under - Section 66F
119. Publishing obscene material in electronic form dealt under - Section 67
120. Punishment under Section 67 may extend upto - two three years term and/or five lakhs fine
121. Punishment for Sudsequent conviction of the same crime under section 67 is - 5 years term and/or ten lakhs rupees fine
122. Sexually explicit content in electronic form dealt under - Section 67A
123. Punishment under Section 67A is - Five years term with fine
124.Punishment for Sudsequent conviction of the same crime under section 67A is - 7 years term and/or ten lakhs rupees fine
125. CERT-IN has been designated as Nodal agency for Critical Information Infrastructure Protection under Section - 70B
126. Mispresentation/Suppression of material Fact dealt under - Section 71
127. Penalty under Section 71 - Two years term and/or fine upto One lakh rupees
128. Breach of confidentiality and Privacy dealt under Section - 72
129. Analysing the style of writing or the langauage style for the purpose of Crime Investigation is - Stylometry
130. RBI issues licenses for Payment Banks in India based on approval from - BPSS
131. NTRO stands for - National Technical Research Organisation
132. Netra, the light weight UAV was developed by - DRDO
133.NCIIPC stands for - National Critical Information Infrastructure Protection Centre
134. DSCI - Data Security Council of India
135. Digital Forensic tools used by our Police Department were developed by - C-DAC
136. C-DAC stands for - Centre for Development of ADvanced Computig
137. NTRO works under - Prime Minister's Office
138. Two acts which are mainly handled by ED - FEMA and PMLA
139. Money laundering using banking systems/Internet banking is - Conventional Crime
140. Obtaining an IP address similar to some other and demanding a ransom for forego the same is - Cyber Squatting
141. Data Protection while in transit using non repudiation techniques can be achieved through - Public Key Infrastructure
142. Card Skimming is a technique mostly used th steal the card details and it mostly placed on - ATM manchines
143. Card Skimming Data Theft can be avoided using - Contactless Cards/NFC Cards
144. To avoid the Card Credentials in Online sites these cards were introduced - Virtual Cards
145. Smart Cards which are loaded with Money prior to issue is called - Prepaid Cards
146. Virtual Cards normally comes with a validity of - 24 hours to 48 hours
147. Maximum loading permitted in a Prepaid as per RBI instruction is - 50000/-
148. Hackers try to capture the login credentials by analysing the keys pressed in the Key boards. the worms captures such data is called as - Key Loggers
149. By clicking unauthenticated link, customers may diverted to fake websites to capture the sensitive personal. This is type of - Website spoofing/IP Spoofing
150. Ad wares are used not to harm the computers but to - make a catch by making the user to click on the dubious link to fake websites