SECURITISATION & RECONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEMENT OF

SECURED ASSETS ORDINANCE 2002 - SARFAESI Act - 2002

1. Is it necessary to classify the account as NPA for initiating action under the Act? YES

2. The above Act is applicable in respect of debts due to Nationalised Banks only

3. The Provisions of the Act are applicable in respect of All NPA a/cs with liability above Rs. 1 lac

4. Enforcement is not possible under this Act in respect of Time barred debts, where the present

liability is less than 20% of principal + int. &where the secured asset is an Agricultural Land

5. Whether limitation is suspended or saved while proceeding under the act? No

6. Movables seized under this Act have to be got valued by Valuer in the panel approved by the

Board of the Bank

SARFEASI ACT
• The act has two parts, first part stands for securitization and reconstruction of financial assets and
other part is enforcement of security interest.
• Eligible assets under the act may be enforced without intervention of court or tribunal with the laid
down procedure under the act.
• If party failed to deposit the amount, possession of charged/ secured assets is obtained from the
bank under section 13(4) of the act. Publication of possession notice in the act within 07 days is
mandatory.
• No secured creditor shall exercise any right, unless exercise of such right is agreed upon by the
secured creditors representing not less than 3/4th in value of the amount outstanding.
• If borrower restricts the bank to take physical possession of secured assets, petition is filed under
section 14 of the act to the CMM/DM praying to get the physical possession of the assets.
• No action is taken before 45 days of taking possession, as 45 days time is given under the act to
appeal against the action of the bank.
• Appeal with DRT can be filed by the party only after taking possession of the assets under section
17 of the act. Thereafter appeal can also be filed with DRAT under section 18 of the act. Civil court
does not jurisdiction to entertain any suit under provision of the act.
• Secured assets can be disposed off / sold giving 30 days notice to the parties concerned followed
by 30 days publication of sale through auction/ tender notice of these assets in the vernacular
newspaper and national daily.
• 60 days notice is served under 13(2) of SARFEASI
• Action is taken for the dues exceed Rs.1 lakh
• Agriculture Land and lease hold property can not be enforced
• Appeal is made within 45 days of possession of secured asset

• 30 days notice is served indicating there in the sale of asset
• 30 days publication is made for auction of secured assets
• Possession of property is obtained under 13(4) SARFEASI Act
• Publication of possession of property -within 7 days from the date of possession.
• SERFEASI ACT 2002 does not apply to the following assets –
A -lien on any goods, money or security.
B -A pledge of moveable.
C – Creation of any security in any aircraft or vessel.
D – Any property that can not be attached under any other law.
E – Any security interest for securing repayment any financial asset not exceeding Rs.1 lac.
F – Any case in which the amount due is less than 20% of the principal amt.
G – Any interest created in agriculture land.

Negotiable instruments act

NEGOTIABLE INSTRUMENTS ACT

1. What is the Section which contains the provisions relating to bouncing of cheques? Sec 138 to

147 of NI Act

2. What is the characteristic of a negotiable instrument? It must be transferable by delivery. & b) It

must enable the holder to sue in his own name

3. Who is the holder in the context of the negotiable instruments? Holder is the person who is

entitled to the possession of the instrument and to receive the amount of the instrument in his own

name

4. A cheque dated 3rd Jan 2005 bears the striking of the pre-printed year 19., can be passed? YES.

Striking need not be authenticated and cheque can be passed.

5. Whether protection is available to the paying banker in case of a cheque where drawer‘s signature

is forged? No.

Banking sector IT guidelines

Banking Sector IT guideline
The Reserve Bank of India issued new guidance in April 2011 for banks to mitigate
the risks of use of information technology in banking operations. RBI guidelines are
result of the Working Group's recommendations on information security, electronic
banking, technology risk management and cyber fraud. The Working Group was formed
under the chairmanship of G. Gopalakrishna, the executive director of RBI in April 2010.
The guidance is largely driven by the need for mitigating cyber threats emerging from
increasing adoption of IT by commercial banks in India.
Recommendations are made in nine broad areas, including-
1. IT Governance: emphasizes the IT risk management accountability on a bank's
board of directors and executive management. Focus includes creating an
organizational structure and process to ensure that a bank's IT security sustains
and extends business strategies and objectives.
2. Information Security: maintaining a framework to guide the development of a
comprehensive information security program, which includes forming a separate
information security function to focus exclusively on information security and risk
management, distinct from the activities of an information technology
department. These guidelines specify that the chief information security officer
needs to report directly to the head of risk management and should not have a
direct reporting relationship with the chief information officer.
3. IT Operations: specialized organizational capabilities that provide value to
customers, including IT service management, infrastructure management,
application lifecycle management and IT operations risk framework.
4. IT Services Outsourcing: places the ultimate responsibility for outsourcing
operations and management of inherent risk in such relationships on the board
and senior management. Focus includes effective selection of service provider,
monitoring and control of outsourced activities and risk evaluation and
management.
5. Information Security Audit: the need for banks to re-assess IS audit processes
and ensure that they provide an independent and objective view of the extent to
which the risks are managed. This topic focuses on defining the roles and
responsibilities of the IS audit stakeholders and planning and execution of the
audit.
6. Cyberfraud: defines the need for an industry wide framework on fraud
governance with particular emphasis on tackling electronic channel based frauds.
Focus includes creating an organizational structure for fraud risk management
and a special committee for monitoring large value fraud.


7. Business Continuity Planning : focuses on policies, standards and procedures

to ensure continuity, resumption and recovery of critical business processes.
Also, this topic emphasizes implementing a framework to minimize the
operational, financial, legal, reputational and other material consequences arising
from such a disaster.
8. Customer Education: the need to implement consumer awareness framework
and programs on a variety of fraud related issues.
9. Legal Issues: defines the need to put effective processes in place to ensure that
legal risks arising from cyber laws are identified and addressed at banks. It also
focuses on board's consultation with legal department on steps to mitigate
business risks within the bank.

Types of Charges : Very simple way

Purpose, Various types of charges:
1. Pledge - It is used when the bank (or, lender, known as pledgee) takes
actual possession of the securities, such as goods, certificates, golds,
etc, (you provide it to bank to avail loan) which are generally movable in nature.

Bank keeps the securities with itself, and provide loan to you.
Bank will return the securities (possession of goods) to you (borrower,known
as pledgor), after you repay all the debts (i.e., loan) to the bank. In case you
are unable to pay back, then the bank has the right to sell the assets,
and recover the loan amount (with interest).
Example - Gold loans, Jewellry loans, warehouse finance.
2. Hypothecation - It is used when you (borrower) have the
actual possessionof the asset, for which you have taken the loan. Generally,
this is charged against loans for movable assets, like car, bus, etc.
(i.e., vehicle loans). Here, the assets (bus, car, etc.) remain with you, and you
are hypothecated to the bank for the loan granted.
In case you are unable to repay the loan amount, then the bank has the right
to sell the asset (bus, car, etc.), (which is possessed by you) and recover the
total amount (with interest).
Example - Car loans, Bus loans, etc.
3. Mortgage - It is used when you (borrower) have the
actual possession of the assets, for which you are granted loan (e.g., house
loan), or against whichyou are granted loan (e.g., house
mortgaged). Mortgages are generally those assets, which
are permanently attached with Earth surface, like house, land, factory etc.
In case you are unable to repay the loan amount, the bank has
the right to seize and sell the mortgage, and recover the loan amount (with
interest).

Large Exposures Framework full details

Large Exposures Framework

1. Introduction

1.1 A bank’s exposures to its counterparties may result in concentration of its assets to a single counterparty or a group of connected counterparties. As a first step to address the concentration risk, the Reserve Bank, in March 1989, fixed limits on bank exposures to an individual business concern and to business concerns of a group. RBI’s prudential exposure norms have evolved since then and a bank’s exposure to a single borrower and a borrower group is currently restricted to 15 percent and 40 percent of capital funds respectively. A comprehensive policy framework on the subject is consolidated in the Master Circular – Exposure Norms/Master Direction - Prudential Norms on Banks’ Exposures.

1.2 In January 1991, the Basel Committee on Banking Supervision (BCBS) issued supervisory guidance on large exposures, viz., Measuring and Controlling Large Credit Exposures. Further, the Core Principles for Effective Banking Supervision (Core Principle 19), published by BCBS in October 2006 (since revised in September 2012) prescribed that local laws and bank regulations set prudent limits on large exposures to a single borrower or a closely related group of borrowers. In order to foster a convergence among widely divergent national regulations on dealing with large exposures, the BCBS issued the Standards on ‘Supervisory framework for measuring and controlling large exposures’ in April 2014. The Reserve Bank has decided to suitably adopt these standards for banks in India and, accordingly, the instructions on banks' Large Exposures (LE) is described in the following paragraphs.

LARGE EXPOSURES FRAMEWORK (LEF)

LARGE EXPOSURES FRAMEWORK (LEF)
The following write up on Large Exposures Framework (LEF) is based on RBI
Notification No. RBI/2016-17/167 DBR.No.BP.BC.43/21.01.003/2016-17 dated December
1, 2016. Candidates are advised to refer to the Notification for additional details.
In order to align the exposure norms for Indian banks with the BCBS standards, RBI has laid
down the guidelines on Large Exposures Framework on December 1, 2016. The guidelines are
aimed at significant tightening of norms pertaining to concentration risks of banks, especially
in relation to large borrowers. The guidelines come into effect from April 1, 2019.
A large exposure is defined as any exposure to a counter-party or group of counter-parties
which is equal to 10 per cent of the bank’s eligible capital base (defined as tier-I capital).
LARGE EXPOSURE LIMITS
Single Counterparty: The sum of all the exposure values of a bank to a single counterparty
must not be higher than 20 percent of the bank’s available eligible capital base at all times. In
exceptional cases, Board of banks may allow an additional 5 percent exposure of the bank’s
available eligible capital base. Banks shall lay down a Board approved policy in this regard.
Groups of Connected Counterparties: The sum of all the exposure values of a bank to a
group of connected counterparties, as defined below, must not be higher than 25 percent of the
bank’s available eligible capital base at all times.

Information Technology (Amendment) Act, 2008 full details

Information Technology (Amendment) Act, 2008
BRIEF HISTORY
The Indian Information Technology Act 2000 (“Act”) was a based on the Model Law on Electronic Commerce adopted by the United Nations Commission on International Trade Law[1]; the suggestion was that all States intending to enact a law for the impugned purpose, give favourable consideration to the said Model Law when they enact or revise their laws, in view of the need for uniformity of the law applicable to alternatives to paper-based methods of communication and storage of information. Thus the Act was enacted to provide legal recognition for transactions carried out by means of electronic data interchange and other means of electronic communication, commonly referred to as "electronic commerce", which involved the use of alternatives to traditional or paper-based methods of communication and storage of information, to facilitate electronic filing of documents with the Government agencies. Also it was considered necessary to give effect to the said resolution and to promote efficient delivery of Government services by means of reliable electronic records. The Act received the assent of the President on the 9th of June, 2000.

The Act was subsequently and substantially amended in 2006 and again in 2008 citing the following objectives:
• With proliferation of information technology enabled services such as e-governance, ecommerce and e-transactions, protection of personal data and information and implementation of security practices and procedures relating to these applications of electronic communications have assumed greater importance and they require harmonization with the provisions of the Information Technology Act. Further, protection of Critical Information Infrastructure is pivotal to national security, economy, public health and safety, so it has become necessary to declare such infrastructure as a protected system so as to restrict its access.
• A rapid increase in the use of computer and internet has given rise to new forms of crimes like publishing sexually explicit materials in electronic form, video voyeurism and breach of confidentiality and leakage of data by intermediary, e-commerce frauds like personation commonly known as Phishing, identity theft and offensive messages through communication services. So, penal provisions are required to be included in the Information Technology Act, the Indian Penal Code, the Indian Evidence Act and the Code of Criminal Procedure to prevent such crimes.
• The United Nations Commission on International Trade Law (UNCITRAL) in the year 2001 adopted the Model Law on Electronic Signatures. The General Assembly of the United Nations by its resolution No. 56/80, dated 12th December, 2001, recommended that all States accord favorable consideration to the said Model Law on Electronic Signatures. Since the digital signatures are linked to a specific technology under the existing provisions of the Information Technology Act, it has become necessary to provide for alternate technology of electronic signatures for bringing harmonization with the said Model Law.
• The service providers may be authorized by the Central Government or the State Government to set up, maintain and upgrade the computerized facilities and also collect, retain appropriate service charges for providing such services at such scale as may be specified by the Central Government or the State Government.

Today's KYC aml recollected questions

KYC/AML recollected questions 8-7-18

Paper was difficult & twisted.

{Periodicity of risk categorization,stages of money laundering 2 marks questions almost 4,desidnated director is designated by?,pmla amendments almost 4 questions,str,ccr,period of retention of transaction,which banks is not included in Wolfsburg banks,responsibility of board of directors and PO,reporting entity,transaction means,person means,which countries need permission to open account,egmont group,which laws r in USA legislation,act related to Australia,freezing of assets power lies with whom,fiu-ind 2-3 questions,social impact of m/l,which is not stage in m/l,multiple tier account,pep,updation of kyc policy,ckycr assign identifier of whom,legislation supporting aml measure,shell bank,elements of kyc policy,stages of cip,simplified due diligence,utility bill,proprietary firm,small ac

DC MSME schemes very important

Development Commissioner (DC-MSME) Schemes
Related scheme: 1. Credit Guarantee
Description Ministry of Micro, Small and Medium Enterprises, GoI and Small Industries
Development Bank of India (SIDBI), established a Trust named Credit Guarantee Fund Trust
for Micro and Small Enterprises (CGTMSE) to implement Credit Guarantee Fund Scheme for
Micro and Small Enterprises. The corpus of CGTMSE is being contributed by GoI and SIDBI.
Nature of assistance Collateral free loans up to a limit ofRs.50 lakh - for individual MSEs
Who can apply Both existing and new enterprises are eligible to be covered under the scheme.
How to apply Candidates meeting the eligibility criteria may approach banks/financial
institutions, which are eligible under the scheme, or scheduled commercial banks and select
Regional Rural Banks.
Related scheme: 2. Credit Linked Capital Subsidy (CLCS) forTechnology Upgradation
Description Technology upgradation would ordinarily mean induction of state-of-the-art or near
state-of-the-art technology. In the varying mosaic of technology obtaining in more than 7,500

MSME organizational set up

Organisational Setup
The M/o MSME has two Divisions called Small & Medium Enterprises (SME) Division and Agro &
Rural Industry (ARI) Division. The SME Division is allocated the work, inter- alia, of administration,
vigilance and administrative supervision of the National Small Industries Corporation (NSIC) Ltd., a
public sector enterprise and the three autonomous national level entrepreneurship
development/training originations. The Division is also responsible for implementation of the
schemes relating to performance and credit rating and assistance to training institution, among
others. SME Division is also responsible for preparation and monitoring of Results Framework
Document (RFD) as introduced in 2009 by the Cabinet Secretariat under Performance Monitoring
and Evaluation System (PMES). The ARI Division looks after the administration of two statutory
bodies viz. the Khadi and Village Industries Commission (KVIC), Coir Board and a newly created
organization called the Mahatma Gandhi Institute for Rural Industrialization (MGIRI). It also
supervises the implementation of the Prime Minister's Employment Generation Programme
(PMEGP).

MSME institutional frame work and overview

INSTITUTIONAL FRAMEWORK & MSME Financing

The importance of MSMEs is recognised in the 12th five year plan for 'faster, sustainable and more
inclusive Growth (Planning Commission, 2011). It is understood that MSMEs provide a vehicle to
build more inclusive growth, with higher disbursement compared to larger scale enterprises. With
MSMEs, comes the opportunity for unrestricted creativity and innovation driven by individual of
entrepreneurship. Backed by Hon'ble Prime Minister Shri Modi's ambitious 'Make in India'
campaign, there are number of growth advantages that MSMEs can benefit from. They have
significantly higher labour to capital ratios and as such offer significant opportunities for job
production, as well as growth through rural urbanisation which comes as a result of a strong
degree of operational flexibility. The MSME sector remains one of the most cost-effective
employment creation resources. A number of capital resources can be mobilised by the increased
spread of entrepreneurship that would otherwise have been left immobile. Similarly, with
increased MSME job production comes the opportunity to utilise the nation's skills that may have

MSME CDP very important for exam

MSE-CDP
Micro & Small Enterprises - Cluster Development Programme (MSE-CDP)
The Ministry of Micro, Small and Medium Enterprises (MSME), Government of India (GoI) has adopted the Cluster Development approach as a key strategy for enhancing the productivity and competitiveness as well as capacity building of Micro and Small Enterprises (MSEs) and their collectives in the country. A cluster is a group of enterprises located within an identifiable and as far as practicable, contiguous area and producing same / similar products / services. The essential characteristics of enterprises in a cluster are (a) Similarity or complementarity in the methods of production, quality control and testing, energy consumption, pollution control, etc (b) Similar level of technology and marketing strategies / practices (c) Similar channels for communication among the members of the cluster (d) Common challenges and opportunities.

Objectives of the Scheme:

(i) To support the sustainability and growth of MSEs by addressing common issues such as improvement of technology, skills and quality, market access, access to capital, etc.

ii) To build capacity of MSEs for common supportive action through formation of self help groups, consortia, upgradation of associations, etc.

(iii) To create/upgrade infrastructural facilities in the new/existing industrial areas/ clusters of MSEs, including setting up of Flatted Factory Complexes.

(iv) To set up common facility centres (for testing, training centre, raw material depot, effluent treatment, complementing production processes, etc.)

Components:

(i) Setting up of CFCs: Creation of tangible “assets” as Common Facility Centers (CFCs) like Common Production/Processing Centre (for balancing/correcting/improving production line that cannot be undertaken by individual units), Design Centres, Testing Facilities, Training Centre, R&D Centres, Effluent Treatment Plant, Marketing Display/Selling Centre, Common Logistics Centre, Common Raw Material Bank/Sales Depot, etc. The GoI grant will be restricted to 70% of the cost of project of maximum Rs 15.00 crore. GoI grant will be 90% for CFCs in NE & Hill States, Clusters with more than 50% (a) micro/ village (b) women owned (c) SC/ST units.

(ii) Infrastructure Development: Consist of projects for infrastructural facilities like power distribution network, water, telecommunication, drainage and pollution control facilities, roads, banks, raw materials storage and marketing outlets, common service facilities and technological backup services for MSEs in the new/ existing industrial estates/areas. The GoI grant will be restricted to 60% of the cost of project of Rs 10.00 crore. GoI grant will be 80% for projects in NE & Hill States, industrial areas/ estates with more than 50% (a) micro (b) women owned (c) SC/ST units.

MSME schemes NMCP

Manufacturing Competitiveness Programme (NMCP)

The Government has announced formulation of National Competitiveness Programme in 2005 with an objective to support the Small and Medium Enterprises (SMEs) in their endeavor to become competitive and adjust the competitive pressure caused by liberalization and moderation of tariff rates. Para 59 of the Budget Speech 2005 are as follow:-

"Worldwide, it is manufacturing that has driven growth. In order to revive the manufacturing sector, particularly small and medium enterprises, and to enable them to adjust to the competitive pressures caused by liberalization and moderation of tariff rates, I propose to launch a new scheme that will help them strengthen their operations and sharpen their competitiveness. The scheme will be called the "Manufacturing Competitiveness Programme". The design of the scheme will be worked out by the National Manufacturing Competitiveness Council (NMCC) in consultation with the industry".

Accordingly, the NMCC along with relevant stakeholders like the Ministry of MSME has conceptualized and finalized the components of the programme incorporating suitable inputs from the stakeholders in a meeting taken by Chairman, NMCC on 7.12.2005. The NMCP, as conceptualized by the NMCC was accepted by the Government and announced for implementation in the Budget 2006-07, para 68 of which state as under:-

The National Manufacturing Competitiveness Council (NMCC) has finalized a five-year National Manufacturing Programme. Ten schemes have been drawn up including schemes for promotion of ICT, mini tool room, design clinics and marketing support for SMEs. Implementation will be in the PPP model, and financing will be tied up during the course of the next year

The Small and Medium Industries form the backbone of manufacturing sector not only in this country but even in the developed countries. In India, the small scale sector contributes to 40% of manufacturing. The small industries sector also contributes substantially to the exports. In the past, the Small Scale Sector existed in a relatively sheltered environment. The levels of protection were high, several goods were reserved for production in the Small Scale Sector, special fiscal incentives were extended to the units in the sector and a number of support programmes were also drawn up to ensure the Small Industries survived.

In the post-reform era, starting from 1991, the situation for the Manufacturing Sector as a whole as well as for the Small Industries has undergone a dramatic change. The tariffs on imports have been reduced very substantially. India is gradually integrating with the world economy; new trade blocs are forming and many countries, including India, are entering into Preferential Trade Agreements, Free Trade Agreements or Comprehensive Economic Agreements to improve trade in areas of their comparative advantage. In this process the Indian economy is becoming more open and there is an urgent need for the Industry to adjust to the new situation. The Indian Industry will have to become competitive by cutting down overall costs to that extent to survive and grow. The situation confronting the Small Industries in particular provides both opportunities as well as challenges. An opportunity to grow in a global market place is available to access entry into the global value chain by virtue of their being internationally competitive. The others would need to reposition themselves and become competitive to meet the challenges if they have to survive

Prevention of cyber crime and fruad management today's recollected questions

Cyber crime Recollected Questions date-08/07/18

Q1.what is honey pot. Q2. What are steps involved in a Ecommerce transactions. Q3. Difference between durability and consistency. Q4. What is firewell. Q5 .what is wankworm and NASA. Q6. Eucp published in which year. Q7.OLA is not a popular app store. Q8.what is circumstantial evidences. Q9.BOSS (Bharat operating system solution was developed by which organizations -CDAC Q10.what is malicious code writer's. Q11.What is multylayered security Q12. What is data. Q13.blackmailing is an example of cyber extortion. Q14 what is SCADA. Q15.what is cryptolocker Q16.smart card in metrorailway stations are examples Q17.packet filter firewall. Q18.micro ATM. Q19.cross site Scripting. Q20. What is A hectivist...
 Q21 . Rupay card is issued in which year. Q22 what is Trojan hourse. Q23. What is malware. Q.24.data backup is an example of which type of control. Q25.what is Lebance loop modulas oprendi in atm card frauds. Q26.CCTV is an example of which control. Q27.what is Cyber Smearing. Q28.what is operating system vulnerability Q29.what is full form of CISA cyber security information sharing Act. Q30 what is zeus viruses. Q31.what is hashh value and integrity. Q32.w difference between Authirization and Authentication. Q33. What is INFO stealer. Q34.e.what is A beck End Access. Q35.what is meaning of phrase of "Ab initio Unlawfully or Unlegally. Q36.what is security Administration and Quality Assurance. Q37.what is CAPTCHA. Q38.Intentionally misrepresentation of Data is called A Fraud. Q39. What is definition of Control. Q40.What is A John Deo Order. ...
Q41.what is payment walked and digital wallet Q42 what is Anonymous. Q43. What is trapdoor access. AQ44..Total branch automation TMA. Q45. .com and .org are TLD. Q46. TCS fraud in Andhra Pradesh is an example of reasonable security practises and procedures. Q47. The PVCL case in India refers to which Act of IT act Act_69 power to moniter,intercept or Block URL. Q48.one question on CBS and TBA total branch Automations. Q49. Sysadmin sysuser or teller all are examples of Spoofing. Q50.what is A network Analysis. Q51.what is vulnerability Q52.what is DNS sinkholding. Q53.e.Contactless smart card are example of which. Q54 .Lebance Loop card fraud rubber band type material inside Atm Fraud. Q55.what is Contigency pkanning. Q56.what is Nigrean 419 Fraud. Q57.Dumpster Diving. Q58.what is diffrence between Steersman and script kiddle Q59.Staganography. Q60. What is SSL injections and Cross Site Scripting......


Recollected questions from prevention of cyber crimes and fraud management...

Script kiddie
Prevention control, deterrent control,
Interpol (which indian agency co-ordinate with it)
Zeus
From which year UCP is effective
UTM
Asymmetric and symmetric encryption(2 questions )
Cert
I4C
IT act and IT amendment act(3 questions approx)
Blue hat hacker
Eavesdropping
Mitm
Didi
Digital signature
How to make email secure---SSL, SHA like tech

Integrity 

Authentication

Micro finance

What is microfinance?
Microfinance, also known as microcredit, is a financial service that offers loans, savings and insurance to entrepreneurs and small business owners who don't have access to traditional sources of capital, like banks or investors. The goal of microfinancing is to provide individuals with money to invest in themselves or their business.

"Microfinance focuses on meeting the financial needs of populations that are financially underserved," said Tarsava. "These are individuals who usually lack the credit or resources to secure a loan and are unlikely to get approval from traditional banks. Typically, these consumers are seeking small-denomination loans … to finance the purchase of a specific equipment, or the capital to start a small business."

All the best for your exam

Luck is a funny thing because sometimes it can be good and sometimes it can be bad. So take matters in your own hand, study hard and stop relying on something so fickle. All the best.

The best way to motivate yourself is to stop stressing about what’ll happen when things go wrong and start thinking about how awesome life will be when they go right. Good luck.

wish you success in your exams messages

If you believe in yourself you do not have to fear any challenge. I wish you all the success for your exam!

You prepared well, You know it all right, Just relax over the night. Morning will come and so will the test Don’t you worry; you just need a little rest. Best of luck for exam!

Current Affairs on July 7th 2018

Today's Headlines from www:

*Economic Times*

📝 Forex reserve falls by $1.76 billion to $406 billion

📝 Tata Steel posts 8% growth in Q1FY19 sales

📝 Sterlite Tech's Italian unit to buy Metallurgica Bresciana for 47 million euros

📝 India's engineering exports up 20 per cent despite US-China trade war: EEPC

📝 Gold imports drop 25% in June on rupee plunge

📝 Six global companies respond to India's RFI for 110 fighter jets

📝 PNB invites bids to sell 3 NPA accounts to recover over Rs 136 cr

Cyber fraud exam:

cyber fraud exam:

 CRYPTOGRAPHY
There are two basic types of Encryption algorithms:

(i) Symmetric encryption
(ii) Asymmetric Encryption
Symmetric Encryption: In this encryption technique the sender and receiver encrypts and decrypts the message with the same key. Examples are Twofish, Serpent, AES (Rijndael), Blowfish, CAST5, Kuznyechik, RC4, 3DES, Skipjack etc.
Asymmetric encryption: In this encryption technique the sender encrypts the message with the receiver’s public key and the receiver decrypts the information with recipient’s private key. Hence this technique is called public key encryption. Examples are: Diffie-Hellman, RSA, ECC, ElGamal, DSA etc.
Among the various models of symmetric cipher analyzed the Rijndael is the best. Actually it is the role model of DES and AES. This model is adopted by different information security agencies like NSA, NIST and FIPS.

BCSBI Important Notes

                               INTRODUCTION
BCSBI:This is a voluntary Code, which sets minimum standards of banking
practices for banks to follow when they are dealing with individual
customers. It provides protection to you and explains how banks are
expected to deal with you for your day-to-day operations.
The Code does not replace or supersede regulatory or supervisory
instructions of the Reserve Bank of India (RBI) and we will comply with
such instructions/directions issued by RBI from time to time. Provisions
of the Code may set higher standards than what is indicated in the
regulatory instructions and such higher standards will prevail as the Code
represents best practices voluntarily agreed to by us as our commitment
to you.
In the Code, ‘you’ denotes the customer and ‘we’, the bank the customer
deals with.
1.1 Objectives of the Code
The Code has been developed to:
a. promote good and fair banking practices by setting minimum
standards in dealing with you
b. increase transparency so that you can have a better understanding
of what you can reasonably expect of the services
c. encourage market forces, through competition, to achieve higher
operating standards
d. promote a fair and cordial relationship between you and your bank
e. foster confidence in the banking system.
The standards of the Code are covered by the key commitments in Section 2.
1.2 Application of the Code
This Code applies to all the products and services listed below, whether
they are provided by branches or subsidiaries, agents acting on our behalf,
across the counter, over the phone, by post, through interactive electronic
devices, on the internet or by any other method. However, all products
discussed here may or may not be offered by us.
a. Current accounts, savings accounts, term deposits, recurring
deposits, PPF accounts and all other deposit accounts
3
b. Payment services such as pension, payment orders, remittances by
way of Demand Drafts, wire transfers and all electronic transactions
e.g. RTGS, EFT, NEFT

Code of Bank’s Commitment to Micro and Small Enterprises

Code of Bank’s Commitment to Micro and Small Enterprises – August 2015

                                              Introduction

This Code sets the minimum standards of banking practices that banks
will follow when they are dealing with Micro and Small Enterprises
(MSEs) as defined in the Micro, Small and Medium Enterprises
Development (MSMED) Act, 2006. It provides protection to you and
explains how banks are expected to deal with you in your day-to-day
operations and in times of financial difficulty.
The Code does not replace or supersede regulatory or supervisory
instructions issued by the Reserve Bank of India (RBI) and we will comply
with such instructions / directions issued by the RBI from time to time.
The provisions of the Code may have set higher standards than those
prescribed in the regulatory or supervisory instructions and such higher
standards will prevail, as the Code represents best practices agreed to
by us as our commitment to you.
In the Code, ‘you’ denotes the MSE Customer and ‘we’, the bank that
you deal with.
1.1 Objectives of the Code
The objectives of the Code are –
a. To give a positive thrust to the MSE sector by providing easy access
to efficient and appropriate banking services.
b. To promote good and fair banking practices by setting minimum
standards for dealings with you.
c. To increase transparency so that you can have a better understanding
of what you can reasonably expect of the services.
d. To improve our understanding of your business through effective
communication.
e. To encourage market forces, through competition, to achieve higher
operating standards.
f. To promote a fair and cordial relationship between you and us.
g. To ensure timely and quick response to your banking needs.
h. To foster confidence in the banking system.
The standards of the Code are covered by the key commitments in
Section 2.

Cyber fraud full article

CYBER FRAUD
Introduction:
With the advances in information technology, most banks in India have migrated to core banking
platforms and have moved transactions to payment cards (debit and credit cards) and to electronic
channels like ATMs, Internet Banking and Mobile Banking. Fraudsters have also followed customers
into this space. However, the response of most of the banks to frauds in these areas needs further
improvement, thereby avoiding putting the entire onus on the customer. There is also a lack of clarity
amongst banks on the reporting of these instances as frauds. A need is therefore felt to have an industry wide framework on fraud governance with particular
emphasis on tackling electronic channel based frauds. This note endeavours to bring out the
challenges and suggests a framework which can be implemented across banks to effectively tackle

PCI DSS 3.2 Resource Guide

PCI DSS 3.2 Resource Guide
The Payment Card Industry Security Standards Council (PCI SSC) has published a
new version of the industry standard that businesses use to safeguard payment data
before, during and after purchase. PCI Data Security Standard (PCI DSS) version 3.2
replaces version 3.1 to address growing threats to customer payment information.
Companies that accept, process or receive payments should adopt it as soon as
possible to prevent, detect and respond to cyberattacks that can lead to breaches.
Read on for answers to key questions about updates to the standard, timelines, and
resources available for understanding and adopting PCI DSS version 3.2.
Why is the PCI DSS being updated?
A: The Council updates the PCI DSS to ensure it continues to protect against old exploits that are still causing problems, addresses new
exploits and provides greater clarity for implementing and maintaining PCI DSS controls.
Why is it PCI DSS 3.2 and not PCI DSS 4.0?
A: The industry recognizes PCI DSS as a mature standard now, which doesn’t require the significant updates we have seen in the past.

TREASURY MANAGEMENT

1.  Fund management has been the primary activity of treasury, but treasury is also responsible for Risk Management & plays an active part in ALM.

2.  D-mat accounts are maintained by depository participants to hold securities in electronic form.

3.  In present scenario treasury function is liquidity management and it is considered as a service center.

4.  From an organizational point of view treasury was considered as a service center but due to economic reforms & deregulation of markets treasury has evolved as a profit center.

RISK MANAGEMENT 2

:UNIT – VI : RISK AND BANKING BUSINESS

1.  Risks are uncertainties resulting in adverse outcome, adverse in relation to planned objectives or expectations.

2.  Financial risks are uncertainties resulting in variation of profitability or outright losses.

3.  Factors that are responsible for creating uncertainties in cash inflow and cash outflow are the risk elements.

4.  Uncertainties in both cash inflow and cash outflow would result in net cash flow or profits.

5.  The possible unfavorable impact is the Risk of the business.

6.  Lower risk implies lower variability in net cash flow with lower upside & down side potential.

7.  Higher risk would imply higher upside and downside potential.

8.  Zero risk would imply no variation in net cash flow.

RISK MANAGEMENT NOTES

 COMPONENTS OF ASSETS AND LIABILITIES IN BANK’S BALANCE    SHEET AND THEIR MANAGEMENT

1.  ALM encompasses the analysis and development of goals and objectives, the development of long term strategic plans, periodic profit plans and rate sensitivity management.

2.  Assets represent the uses of funds to generate revenue for the Bank.

3.  Reserves and Surplus includes Share premium and balance in P&L account.

4.  Borrowings consists of Refinance from RBI and other institutions.

5.  Other Liabilities are Bills Payable, Inter-office adjustments, Interest accrued &  others like provision for IT, tax deductions at sources, interest tax, provisions etc.

6.  Money at Call and Short Notice includes all loans made in the inter bank  call money market that are repayable within 15 days notice.

7.  A major item in Bank’s Balance Sheet is investment in various securities.

8.  Cash credits, Overdrafts, and loans repayable on demand falls under the category of loans repayable on demand though they may have a specific due date.

9.  The income on Investments is of two types Dividends and Interest. 

10.  The other income includes profit on sale of Investments and other assets.

11.  Dividends from Subsidiaries and Joint ventures are part of Other Income.

12.  The heart of Bank’s financial management is Risk Management.

13.  The deregulated environment has not only led to introduction of discriminate pricing policies but also highlighted need to match maturities of assets & liabilities

14.  The ALM involves interest rates, exchange rates and liquidity risks.

15.  ALM is the act of planning, acquiring and directing the flow of funds through an organization.

16.  ALM requires understanding of market area in which Bank operates.

Risk management

Risk Management


CAPITAL MANAGEMENT AND PROFIT PLANNING
1) One of the important parameters of financial strength is Capital or Net worth.
2) The correlation between business level & capital position is called Capital Adequacy.
3) The incentive for doing business hails from profitability.

CAPITAL ADEQUACY – THE BASEL – II OVERVIEW
1) The Central bank Governors of 10 countries formed a committee on Banking Supervisory
Authorities in 1975.
2) The Banking Supervisory Authority Committee usually meets at the Bank of International
Settlements (BIS) at Basel, in Switzerland.
3) The Basel Committee provided the framework for Capital Adequacy in 1988 is known as the
Basel – I accord.
4) The Basel norms for Risk weights were more of a straightjacket nature.
5) As per Basel – I all exposures to sovereign were given 0% risk weight and all bank exposures
were given 20% Risk weight.
6) Assigning Risk Weightage to assets without considering the strengths and weaknesses of
individual entities was the main shortcoming of Basel – I.
7) The Basel – I defined components of Capital and allotted the Risk weights to different
categories of assets.
8) Basel – I stipulated minimum ratio of Capital to Risk weighted Assets.
9) The first round of proposal for changes in the Basel – I accord came up for deliberations and
consultative process in June 1999.
10) The Report of Basel – II Committee is titled as International Convergence of Capital
Measurement and Capital Standards a Revised frame work.
11) The Committee intends that the revised framework would be implemented by the end of year
2006.
12) The fundamental of Basel – II was to revise 1988 accord and to strengthen the soundness and
stability of banking system.

New Foreign exchange management 150 MCQs

FOREIGN EXCHANGE MANAGEMENT

Multiple Choice Questions.
1. Foreign exchange transactions involve monetary transactions
A. among residents of the same country
B. between residents of two countries only
C. between residents of two or more countries
D. among residents of at least three countries
ANSWER: B
2. Under FEMA, the RBI has been authorised to make ------ to carry out the provisions of the Act.
A. rules
B. regulations
C. both rules and regulations
D. notifications
ANSWER: B
3. A foreign currency account maintained by a bank abroad is its
A. nostro account
B. vostro account
C. loro account
D. foreign bank account
ANSWER: A

Srinivas kante

4. 'Non-resident Bank Accounts' refer to
A. nostro account
B. vostro account
C. accounts opened in offshore centres
D. none of the above
ANSWER: B
5. Non-resident bank accounts are maintained in
A. the permitted currencies
B. the currency of the country of the bank maintaining the account
C. the currencies in which FCNR accounts are permitted to be maintained
D. Indian Rupee
ANSWER: D

Forex mcqs for international banking

1. Foreign Exchange Management Act (FEMA) is administered by:
(a) RBI (b) Govt. of India (c) SEBI (d) Both (a) & (b) (d) All of these
2. A license to deal in foreign exchange to authorized dealers is issued by :
(a) DGFT (b) FEDAI (c) RBI (d) EXIM Bank(e) both (a) & (c)
3. All foreign exchange transactions in India are governed by :
(a) Foreign Exchange Regulation Act, 1973 (b) Reserve Bank of India Act, 1934
(d) Foreign Exchange Management Act, 1999 (e) Banking Regulation Act,1949
4. Restricted money changers are the firms/ organizations authorized to undertake :
(a) sale of foreign currency notes, coins and travellers' cheques to the public
(b) purchase of foreign currency notes, coins and travellers' cheques from the public
(c) issue of letters of credit for their importer customers
(d) both safe and purchase of foreign currency notes, coins, travellers' cheques to / from the public

Forex direct and indirect rates

Direct Rates

Foreign Currency is fixed ---say 1USD = INR 55.70

Indirect Rates
Local currency remains fixed---say Rs. 100 = 1.93 USD
At present, following 4 currencies are quoted in Indirect mode:
EURO, GBP, AUD and NZ$
Cross Rates
Cross rate is price of currency pair which is not directly quoted. It is arrived
at from price of two other currency equations.
1. Suppose bank hasto Quote GBP against INR, but in India, GBP is
not quoted directly. In India,
1USD =48.10 and GBP/USD is quoted as 1GBP= USD1.6000.
Therefore 1 GBP = 48.10X1.6 = 76.96
2. An Import bill of GBP 100000 has to be retired. Rates are:
1 GBP=1.5975/85 USD
1USD = 48.14/15 INR
TT margin =.20%
Here Cross selling rate of both currencies will apply.
Bank has to remit GBP. GBP/USD Quote (Indirect) will be available in
International market whereas USD/Rupee Quote (Direct) is available in
local market. Bank will sell USD to buy GBP.
While buying GBP, bank would like to quote higher rate as Buy high Sell
Low maxim will apply. 1GBP = 1.5985
While selling USD, bank will opt to quote higher rate as Buy Low Sell High
maxim will apply.
1GBP=1.5985*48.15 = 76.9675 + Margin@.20% = 77.1214 (say
77.1225)

TT buying and selling Rates

TT Rates and Bill Rates:;

Following 4 types of buying and selling rates are important:
1. TT Buying rate
2. Bill Buying rate
3. TT Selling rate
4. Bill Selling rate
In Interbank market, exchange rate is quoted up to 4 decimals in multiples of 0.0025. e.g.
1USD=53.5625/5650
For customers the exchange rate is quoted in two decimal places i.e. Rupees and paisa. e.g. 1
USD =Rs. 55.54.
Amount being paid or received will be rounded off to nearest Rupee.

TT Buying Rate:::

It is required to calculate when our Nostro account is already credited or
being credited without delay e.g. Receipt of DD, MT, TT or collection ofForeign bills. This rate is used for cancellation of Forward Sales Contract.
Calculation
Spot Rate – Exchange Margin

Bill Buying Rate::

Bill Buying Rate Bill Buying rate is applied when bank gives INR to the customer before
receipt of Foreign Exchange in the Nostro account i.e. Nostro account is
credited after the purchase transaction. In such cases.
Examples are:
 Export Bills Purchased/Discounted/Negotiated.
 Cheques/DDs purchased by the bank.
Calculation

Spot Rate + Forward Premium (or deduct forward discount) – Exchange margin.

TT Selling Rate::

TT Selling Rate Any sale transaction where no delay is involved is quoted at TT selling rate.
It is desired in issue of TT, MT or Draft. It is also desired in crystallization of
Export bills and Cancellation of Forward purchase contract.
Calculation
Spot Rate + Exchange Margin

Bill Selling Rate:::

Bill Selling Rate It is applied where handling of documents is involved e.g. Payment against
Import transactions:
Calculation
Spot Rate + Exchange Margin for TT selling + Exchange margin for Bill
Selling

Examples::

Q. 1
Bank received MT of USD 5000 on 15th Sep. The Nostro account was already credited. What
amount will be paid to the customer: Spot Rate 34.25/30. Oct Forward Differential is 22/24.
Exchange margin is .80%
Solution
TT buying Rate will be applied
34.25 - .274 = 33.976 Ans.

Q. 2
On 15th July, Customer presented a sight bill for USD 100000 for Purchase under LC. How
much amount will be credited to the account of the Exporter. Transit period is 20 days and
Exchange margin is 0.15%. The spot rate is 34.75/85. Forward differentials:
Aug: .60/.57 Sep:1.00/.97 Oct: 1.40/1.37
Solution
Bill Buying rate of August will be applied.
Spot Rate----34.75 Less discount .60 = 34.15
Less Exchange Margin O.15% i.e. .0512 =34.0988 Ans.
( Transit period is rounded to next month since currency will be cheaper as it is buy transaction)

Q. 3
Issue of DD on New York for USD 25000. The spot Rate is IUSD = 34.3575/3825 IM forward
rate is 34.7825/8250
Exchange margin: 0.15%

Solution:
TT Selling Rate will Apply
Spot Rate = 34.3825 Add Exchange margin (.15%) i.e. 0.0516
TT Selling Rate = Spot Rate + Exchange Margin = 34.4341 Ans.

Q. 4
On 12th Feb, received Import Bill of USD-10000. The bill has to retired to debit the account of
the customer. Inter-bank spot rate =34.6500/7200. The spot rate for March is 5000/4500. The
exchange margin for TT selling is .15% and Exchange margin for Bill selling is .20%. Quote rate
to be applied.
Solution
Bill Selling Rate will be applied.
Spot Rate + Exchange margin for TT Selling + Exchange margin for Bill selling =
34.7200+.0520+.0695 = 34.8415 Ans.

Forex numerical

Foreign exchange::

Ex 1.
Calculate TT selling rate for GBP/INR, if USD/INR is 43.85/87 & GBP/USD is 1.9345/49. A
margin of 0.15% is to be loaded.
Solution ; TT selling rate of GBP/INR
1 GBP = 1.9349 USD
 = (1.9349 *43.87)+Margin 0.15%
 =84.8841+.1273=85.0114 INR 85.0114-------------------------Ans.
Ex.2
A foreign correspondent intends to fund his Vostro Account maintained with Mumbai branch of
SBI. What rate will be quoted if 1 USD = 44.23/27 and margin is 0.08%
Solution : TT buying rate will quoted
44.23-.035 = 44.195 ---------------------------------------Ans.
Ex.3
If Swiss Franc is quoted as USD = CHF 1.2550/54 and in India, USD =INR43.50/52, how much
INR will exporter get for his export bill of CHF 50000.
Solution :
Swiss Franc will be sold for USD in overseas market and USD will be bought in local market i.e.
Sell Rate of CHF and Buy rate of USD.(Buy Low Sell High in both quotations)
1 USD = 1.2554 CHF and 1USD=INR 43.50
1CHF=43.50/1.2554 = 34.6503
Amount as paid to exporter = 34.6503*50000=17,32,515/- ----------------Ans.
(Both are direct quotations and Maxim Buy Low Sell High will apply in both
Ex.4
If Swiss Franc is quoted as USD = CHF 1.2550/54 and USD =INR43.50/52, how much INR will
Importer pay for his import bill of CHF 50000.
Solution :
Swiss Franc will be bought against USD in overseas market and USD will be sold in local
market i.e. Buy rate of CHF and Sell rate of USD.
1 USD = 1.2550 CHF and 1USD=INR 43.52
1CHF=43.52/1.2550 = 34.6773
Amount to be received from Importer = 34.6773*50000
=17,33,865/- ----Ans.
(Both are direct quotations and Maxim Buy Low Sell High will apply in both)
Q. 5
Exporter received Advance remittance by way of TT French Franc 100000.
The spot rates are in India IUSD = 35.85/35.92 1M forward =.50/.60
The spot rates in Singapore are 1USD = 6.0220/6.0340 1M forward =.0040/.0045
Exchange margin = 0.8%
Solution
Cross Rate will apply
USD will be bought in the local market at TT Buying rate and sold at Spot Selling Rates in
Singapore for French Francs:
TT Buying Rates USD/INR = Spot rate – Exchange margin = 35.8500-.0287 = 35.8213
Spot Selling Rate for USD/Francs = 6.0340
Inference:
6.0340 Franc = 1USD
 = INR 35.8213
 1 franc = 35.8213/6.0340 = INR 5.9366 Ans.
(Both are direct quotations and Maxim Buy Low Sell High will apply

Forex for individuals

Forex Facilities for Residents
(Individuals):::::

Introduction

The legal framework for administration of exchange control in India is provided by the Foreign Exchange Management Act, 1999. Under the Act, freedom has been granted for buying and selling of foreign exchange for undertaking current account transactions. However, the Central Government has been vested with powers in consultation with Reserve Bank to impose reasonable restrictions on current account transactions. Accordingly, the Government has issued Notifications GSR.381(E) dated May 3, 2000, and S.O. 301(E) dated March 30, 2001, imposing certain restrictions on current account transactions in public interest.

These details are available on the Bank’s website besides with the authorised dealers and regional offices of the Foreign Exchange Department. Our experience so far has been that the residents like to get information on several matters relating to various current account transactions and other incidental issues. This pamphlet attempts to answer to all such questions in simple language. While preparing replies to questions, special care has been taken to ensure that the replies are drafted in simple words and reference to technical details are avoided.

 The Foreign Exchange Management Act,1999 (FEMA), has come into force with effect from June 1, 2000. With introduction of the new Act (in place of FERA), certain structural changes have been introduced and

VERY IMPORTANT FOREIGN EXCHANGE MCQs

VERY IMPORTANT FOREIGN EXCHANGE MCQs



1.Our Branches report their foreign currency transactions to __________________

(a) International Banking Department, Mumbai

(b) Treasury, Mumbai

(c) International Banking Division, LHO

(d) RBI

Ans: b

2.The foreign currency account maintained by our Foreign Department with our foreign

ranches/correspondents in different countries is known as __________________

(a) Special account...

(b) Vostro account

(c) Nostro account

(d) FCNR account

Ans: c

3.Transactions having international financial implications are regulated in our country by

(a) External Affairs Ministry, New Delhi

(b) The Foreign Exchange Dept., RBI, Mumbai

(c) Institute of Foreign Trade, New Delhi

(d) International Division, SBI, Bombay

Ans: b

4.All the forex transactions are reported to Treasury through

(a) Special account

(b) Branch Clearing General Account Schedules 3 and 7

(c) Foreign Currency General Account

(d) FCNR account

Ans: c



5.The account maintained by an our Foreign Branches / Correspondents with our domestic branch (in

India) is known as _________________

(a) Loro a/c

(b) Vostro a/c

(c) Special a/c

(d) Nostro a/c

Ans: b

6.Rate applied for a foreign exchange transaction which involves immediate conversion of currency is

known as _________________

.(a) ready rate

(b) forward rate

(c) merchant rate

(d) long rate

Ans: a

7.A quotation in which the home currency unit is the standard unit and the rate is expressed in variable

units of foreign currency is called _________________

(a) direct rate

(b) spot rate

(c) indirect rate

(d) forward rate

Ans: c

8.When conversion/exchange of currencies takes place at some future date at a rate of exchange agreed

upon now, such a transaction is known as

(a) spot transaction

(b) cover transaction

(c) cash transaction

(d) forward transaction

Ans: d




9.The maxim applied in respect of Direct Quotation is

(a) buy low, sell low

(b) buy low, sell high

(c) buy high, sell low

(d) buy high, sell high

Ans: b

10.A rate of exchange established between any two currencies on the basis of the respective quotation of

each currency in terms of a third currency is known as

(a) cross rate

(b) merchant rate

(c) wash rate

(d) composite rate

Ans: a

11.When branches pass forex transactions at provisional rates, the entries are passed by debit to

(a) Forex Clearing gen. a/c

(b) Br. Cl. Gen. a/c 3 and 7

(c) IBIT

(d) None of the above

.Continue....

Financial Regulatory Bodies in India

Financial Regulatory Bodies in India


In India, the financial system is regulated with the help of independent regulators, associated with the field of insurance, banking, commodity market, and capital market and also the field of pension funds. On the other hand, the Indian Government is also known for playing a significant role in controlling the field of financial security and also influencing the roles of such mentioned regulators. You must be aware of the regulatory bodies and their functions, before a final say. The most prominent of all is RBI or Reserve Bank of India. Let us look in detail about various Financial Regulatory Bodies in India.
RBI – Reserve Banks of India :
Reserve Bank of India : Reserve Bank of India is the apex monetary Institution of India. It is also called as the central bank of the country.
 The Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934. The Central Office of the Reserve Bank was initially established in Calcutta but was permanently moved to Mumbai in 1937. The Central Office is where the Governor sits and where policies are formulated. Though originally privately owned, since nationalization in 1949, the Reserve Bank is fully owned by the Government of India.
The Central Office is where the Governor sits and is where policies are formulated. Though originally privately owned, since nationalization in 1949, the Reserve Bank is fully owned by the Government of India.
SEBI – Securities and Exchange Board of India :

Glossary of Cybercrime Terms very important

Glossary of Cybercrime Terms

back door -- a vulnerability intentionally left in the security of a computer system or its software by its designers

biometrics -- the use of a computer user's unique physical characteristics -- such as fingerprints, voice, and retina -- to identify that user

black hat -- a term used to describe a hacker who has the intention of causing damage or stealing information

bypass -- a flaw in a security device

ciphertext -- data that has been encrypted

Computer Emergency Response Team (CERT) -- an organization that collects and distributes information about security breaches

Information Technology (Amendment) Act, 2008 full details

Information Technology (Amendment) Act, 2008
BRIEF HISTORY
The Indian Information Technology Act 2000 (“Act”) was a based on the Model Law on Electronic Commerce adopted by the United Nations Commission on International Trade Law[1]; the suggestion was that all States intending to enact a law for the impugned purpose, give favourable consideration to the said Model Law when they enact or revise their laws, in view of the need for uniformity of the law applicable to alternatives to paper-based methods of communication and storage of information. Thus the Act was enacted to provide legal recognition for transactions carried out by means of electronic data interchange and other means of electronic communication, commonly referred to as "electronic commerce", which involved the use of alternatives to traditional or paper-based methods of communication and storage of information, to facilitate electronic filing of documents with the Government agencies. Also it was considered necessary to give effect to the said resolution and to promote efficient delivery of Government services by means of reliable electronic records. The Act received the assent of the President on the 9th of June, 2000.

CYBER CRIME TERMINOLOGY

CYBER CRIME  TERMINOLOGY

 Adware – Adware is software designed to force pre-chosen ads to display on your system. Some adware is designed to be malicious and will pop up ads with such speed and frequency that they seem to be taking over everything, slowing down your system and tying up all of your system resources. When adware is coupled with spyware, it can be a frustrating ride, to say the least.

Back Door – A back door is a point of entry that circumvents normal security and can be used by a cracker to access a network or computer system. Usually back doors are created by system developers as shortcuts to speed access through security during the development stage and then are overlooked and never properly removed during final implementation. Sometimes crackers will create their own back door to a system by using a virus or a Trojan to set it up, thereby allowing them future access at their leisure.

Black Hat – Just like in the old westerns, these are the bad guys. A black hat is a cracker. To add insult to injury, black hats may also share information about the “break in” with other black hat crackers so they can exploit the same vulnerabilities before the victim becomes aware and takes appropriate measures.

Bot – A bot is a software “robot” that performs an extensive set of automated tasks on its own. Search engines like Google use bots, also known as spiders, to crawl through websites in order to scan through all of your pages. In these cases bots are not meant to interfere with a user, but are employed in an effort to index sites for the purpose of ranking them accordingly for appropriate returns on search queries. But when black hats use a bot, they can perform an extensive set of destructive tasks, as well as introduce many forms of malware to your system or network. They can also be used by black hats to coordinate attacks by controlling botnets.

CERT-In (the Indian Computer Emergency Response Team)

CERT-In (the Indian Computer Emergency Response Team)

CERT-In (the Indian Computer Emergency Response Team) is a government-mandated information technology (IT) security organization. The purpose of CERT-In is to respond to computer security incidents, report on vulnerabilities and promote effective IT security practices throughout the country.
CERT-In was created by the Indian Department of Information Technology in 2004 and operates under the auspices of that department. According to the provisions of the Information Technology Amendment Act 2008, CERT-In is responsible for overseeing administration of the Act.
CERT organizations throughout the world are independent entities, although there may be coordinated activites among groups. The first CERT group was formed in the United States at Carnegie Mellon University.
CERT-In is operational since January 2004. The constituency of CERT-In is the Indian Cyber Community. CERTIn
is the national nodal agency for responding to computer security incidents as and when they occur.
In the recent Information Technology Amendment Act 2008,CERT-In has been designated to serve as the national
agency to perform the following functions in the area of cyber security:
Collection,analysis and dissemination of information on cyber incidents.
Forecast and alerts of cyber security incidents
Emergency measures for handling cyber security incidents
Coordination of cyber incident response activities.
Issue guidelines,advisories,vulnerability notes and whitepapers relating to information security
practices,procedures, prevention,response and reporting of cyber incidents.
Such other functions relating to cyber security as may be prescribed

Very important Cyber fraud and management exam

Short notes ( Important Points for Prevention of cyber fraud & crime exam point of view)



l  3 aspects of crime fraud triangle are 1.Need 2. Opportunity 3. Rationalization( Criminal commits the crime himself)

l  cyber-crime is not defined in IT act 2000 and amendment 2008 also

l  Crimes comes under Indian penal code 1860

l  Script kiddies means hacker who is having lacks of any serious technical expertise like child –like manner

l  Spammers ..spam like keep sending advertisement and discount offer  mails

l  Vulnerabilities are the opportunities provided by system itself

l  Threat vector to understand the modes of operandi

l   In case of copy right  infringement  to the actual offender  Vitim can apply for John doe order

Kyc aml cuckoo surfing

cuckoo smurfing.::

In 2005, FATF added a new term to the vast money laundering
lexicon – “cuckoo smurfing.

The term, mentioned in the organization’s 2005 Typologies Report,
refers to a form of money laundering linked to alternative
remittance systems, in which criminal funds are transferred through
the accounts of unwitting persons who are expecting genuine
funds or payments from overseas. The term cuckoo smurfing first

Kyc aml FATF recommendations

THE FATF RECOMMENDATIONS:: Total 40

A – AML/CFT POLICIES AND COORDINATION

1 - Assessing risks & applying a risk-based approach *
2 - National cooperation and coordination

B – MONEY LAUNDERING AND CONFISCATION

3 Money laundering offence *
4 Confiscation and provisional measures *

C – TERRORIST FINANCING AND FINANCING OF PROLIFERATION

NEW updated IIBF Prevention of cyber crime & fraud management PDF as on 04.07.2018

NEW updated IIBF  Prevention of cyber crime & fraud management PDF


 All the best

Download link here::
https://drive.google.com/file/d/1JQJ7un3l8dvwvjUSBdG-4RA6WlPV_C36/view?usp=sharing

Current Affairs on July 3rd 2018

Today's Headlines from www:

*Economic Times*

📝 Govt rules out bad bank, unveils five-point plan to clean NPA mess

📝 India's May core industries output slows to 3.6%

📝 Flipkart deal in line with government's FDI policy: Walmart

📝 ITC to add 2500 rooms in 5 yrs, mulls foray to healthcare space

📝 NTPC power generation up 7.45pc in April-June at 69.2 BU

KYC AML VERY IMPORTANT

1.1.      Know Your Customer (KYC) Norms/Anti-Money Laundering (AML) Measures/Combating of Financing of Terrorism (CFT)/Obligations of banks under PMLA, 2002

The objective of KYC/AML/CFT guidelines is to prevent banks from being used, intentionally or unintentionally, by criminal elements for money laundering or terrorist financing activities. KYC procedures also enable banks to know/understand their customers and their financial dealings better which in turn help them manage their risks prudently.

1.2.      Definition of Customer

For the purpose of KYC policy, a ‘Customer’ is defined as:

a        a person or entity that maintains an account and/or has a business relationship with the bank;

b      one on whose behalf the account is maintained (i.e. the beneficial owner). [Ref: Government of India Notification dated February 12, 2010 - Rule 9, sub-rule (1A) of PMLA Rules - 'Beneficial Owner' means the natural person who ultimately owns or controls a client and or the person on whose behalf a transaction is being conducted, and includes a person who exercise ultimate effective control over a juridical person]

c        beneficiaries of transactions conducted by professional intermediaries, such as Stock Brokers, Chartered Accountants, Solicitors etc. as permitted under the law, and

d       any person or entity connected with a financial transaction which can pose significant reputational or other risks to the bank, say, a wire transfer or issue of a high value demand draft as a single transaction.

2            Guidelines

1  1.General

(c)   Banks  should  keep  in  mind  that  the  information  collected  from  the customer for the purpose of opening of account is to be treated as confidential and details thereof are not to be divulged for cross selling or any other like purposes. Banks should, therefore, ensure that information

sought from the customer is relevant to the perceived risk, is not intrusive, and is in conformity with the guidelines issued in this regard. Any other information from the customer should be sought separately with his/her consent and after opening the account

26.  Banks should ensure that any remittance of funds by way of demand draft, mail/telegraphic transfer or any other mode and issue of travellers’ cheques for value of Rupees fifty thousand and above is effected by debit to the customer’s account or against cheques and not against cash payment

27.  With effect from April 1, 2012, banks should not make payment of cheques/drafts/pay orders/banker’s cheques bearing that date or any subsequent date, if they are presented beyond the period of three months from the date of such instrument.

28.  Banks should ensure that the provisions of Foreign Contribution (Regulation) Act, 2010, wherever applicable, are strictly adhered to.

2.2.            KYC Policy

Banks should frame their KYC policies incorporating the following four key elements:

1    Customer Acceptance Policy;

2    Customer Identification Procedures;

3    Monitoring of Transactions; and

iv)Risk Management.