Thursday, 30 August 2018

Communication

Communication may take place several forms
 Oral
 Written
 Non-verbal
 Using body language
It may be face to face, over the phone, or by mail or internet. It may be formal or informal. Whatever the content or form of the message or the media used, the essence of communication is given by what the recipient has understood as being communicated.
It is important for a business to choose how and when it will send messages to intended receivers.
Communication process

i. Source: As the source of the message, the agent must be clear about why she is communicating, and what she wants to communicate, and confident that the information being communicated is useful and accurate.
ii. Message is the information that one wants to communicate.
iii. Encoding is the process of transferring the information one wants to communicate into a form that can be sent and correctly decoded at the other end. Success in encoding depends on how well one is able to convey information and eliminate sources of confusion. For this it is necessary to know one’s audience. Failure to do so can result in delivering messages that are misunderstood.

iv. A Message is conveyed through a channel, which has to be selected for the purpose. The channel may be verbal including personal face-to-face meetings, telephone and videoconferencing; or it may be written including letters, emails, memos, and reports.
v. Decoding is the step wherein the information gets received, interpreted and understood in a certain way, at its destination. It can be seen that decoding [or how one receives a message] is as important as encoding [how one conveys it].
vi. Receiver: Finally there is the receiver, the individual or individuals [the audience] to whom the message is sent. Each member of this audience has his own ideas, beliefs and feelings and these would influence how the message has been received and acted upon. The sender obviously needs to consider these factors when deciding what message to send.
vii. Feedback: Even as the message is being sent and received, the receiver is likely to send feedback in the form of verbal and non-verbal messages to the sender. The latter needs to look for such feedback and carefully understand these reactions as it would help to determine how the message has been received and acted upon. If necessary the message could be changed or rephrased.

Non-verbal communication
Let us now look at some concepts that the agent needs to understand.
Important
Making a great first impression
We have already seen that attraction is the first pillar of any relationship. You can hardly expect to get business from a customer who does not like you. In fact many individuals need just a quick glance, of maybe a few seconds, to judge and evaluate you when you meet for the first time. Their opinion about you gets based on your appearance, your body language, your mannerisms, and how you are dressed and speak. Remember that first impressions last for long. Some useful tips for making a good first impression are:
i. Be on time always. Plan to arrive a few minutes early, allowing flexibility for all kinds of possible delays.
ii. Present yourself appropriately. Your prospect, whom you are meeting for the first time, does not know you and your appearance is usually the first clue he or she has to go on.
 Is your appearance helping to create the right first impression?
 Is the way you dress appropriate for the meeting or occasion?
 Is your grooming clean and tidy – with good haircut and shave, clean and tidy clothes, neat and tidy make up?
iii. A warm, confident and winning smile puts you and your audience immediately at ease with one another.
iv. Being open, confident and positive
 Does your body language project confidence and self-assurance?
 Do you stand tall, smile, make eye contact, greet with a firm handshake?
 Do you remain positive even in the face of some criticism or when the meeting is not going as well as expected?
v. Interest in the other person - The most important thing is about being genuinely interested in the other person.
 Do you take some time to find out about the customer as a person?
 Are you caring and attentive to what he or she says?
 Are you totally present and available to your customer or is your mobile phone engaging you during half your interview?

1. Body language
Body language refers to movements, gestures, facial expressions. The way we talk, walk, sit and stand, all says something about us, and what is happening inside us.
It is often said that people listen to only a small percentage of what is actually said. What we don’t say speaks a lot more and a lot louder. Obviously, one needs to be very careful about one’s body language.
a) Confidence
Here are a few tips about how to appear confident and self-assured, giving the impression of someone to be seriously listened to:
 Posture – standing tall with shoulders held back.
 Solid eye contact - with a "smiling" face
 Purposeful and deliberate gestures
b) Trust
Quite often, a sales person’s words fall on deaf ears because the audience does not trust her – her body language does not give the assurance that she is sincere about what she says. It is very important to be aware of some of the typical signs that may indicate when one is not honest and believable and be on guard against them as listed below:
 Eyes maintaining little or no eye contact, or rapid eye movements
 Hand or fingers are in front of one’s mouth when speaking
 One’s body is physically turned away from the other
 One’s breathing rate increases
 Complexion changes colour; red in face or neck area
 Perspiration increases
 Voice changes such as change in pitch, stammering, throat clearing
 Speech – slow and clear with tone of voice kept moderate to low
Some body movements that indicate defensiveness and non-receptivity include:
 Hand/arm gestures are small and close to one ‘s body
 Facial expressions are minimal
 Body is physically turned away from you
 Arms are crossed in front of body
 Eyes maintain little contact, or are downcast
If your customer expresses any of these, perhaps it is time you checked yourself and paid more attention to what is going on in the customer’s mind.

2. Listening skills
The third set of communication skills that one needs to be aware about and cultivate are listening skills. These follow from a well-known principle of personal effectiveness – ‘first to understand before being understood’.
How well you listen has a major impact on your job effectiveness, and on the quality of your relationships with others. Let us look at some listening tips.
a) Active listening:
It is where we consciously try to hear not only the words but also, more importantly, try to understand the complete message being sent by another.
Let us look at some of the elements of active listening. They are:-
i. Paying attention
We need to give the speaker our undivided attention, and acknowledge the message. Note, non-verbal communication also "speaks" loudly. Some aspects of paying attention are as follows:
 Look at the speaker directly
 Put aside distracting thoughts
 Don't mentally prepare a rebuttal
 Avoid all external distractions [for instance, keep your mobile on silent mode]
 "Listen" to the speaker's body language
ii. Demonstrating that you are listening:
Use of body language plays an important role here. For instance one may:
 Give an occasional nod and smile
 Adopt a posture that is open and draws out the other to speak freely
 Have small verbal comments like yes and uh huh.
iii. Provide feedback:
A lot of what we hear may get distorted by our personal filters, like the assumptions, judgments, and beliefs we carry. As a listener, we need to be aware of these filters and try to understand what really is being said.
 This may require you to reflect on the message and ask questions to clarify what was said
 Another important way to provide feedback is to paraphrase the speaker’s words

Yet a third way is to periodically stop the speaker and make a summary of what the speaker has said and repeat it back to him or her. Example
Asking for clarity - From what I have heard, am I right in assuming, that you have issues about the benefits of some of our health plans, could you be more specific?
Paraphrasing the speaker’s exact words - So you are saying that ‘our health plans are not providing benefits that are attractive enough’ – have I understood you correctly?
iv. Not being judgemental:
One of the biggest hurdles to active listening is our tendency to be judgmental and biased about the speaker. The result is that the listener may hear what the speaker says but listens according to her own biased interpretation of what the speaker might be saying.
Such judgmental approach can result in the listener being unwilling to allow the speaker to continue speaking, considering it a waste of time. It can also result in interrupting the speaker and rebutting the speaker with counter arguments, even before he or she has been able to convey the message in full.
This will only frustrate the speaker and limits full understanding of the message. Active listening calls for:
 Allowing the speaker to finish each point before asking questions
 Not interrupting the speaker with any counter arguments
v. Responding appropriately:
Active listening implies much more than just hearing what a speaker says. The communication can be completed only when the listener responds in some way, through word or action. Certain rules need to be followed for ensuring that the speaker is not put down but treated with respect and deference. These include:
 Being candid, open, and honest in your response
 Asserting one’s opinions respectfully
 Treating another person in a way you would like to be treated yourself
vi. Empathetic listening:
Being empathetic literally means putting yourself in the other person’s shoes and feeling his or her experience as he or she would feel it.

Listening with empathy is an important aspect of all great customer service. It becomes especially critical when the other person is a customer with a grievance and in a lot of pain.
Empathy implies hearing and listening patiently, and with full attention, to what the other person has to say, even when you do not agree with it. It is important to show the speaker acceptance, not necessarily agreement. One can do so by simply nodding or injecting phrases such as "I understand" or "I see."

Wednesday, 29 August 2018

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


PMEGP MCQs MSME


1. The Prime Minister's Employment Generation Programme (PMEGP):
(a) has been designed to generate employment opportunities in Rural & Urban areas.
(b) relates to the setting up of new self-employment ventures for industries, services and business.
(c) covers whole of the country including J & K
(d) has replaced PMRY & KVIC-REGP scheme (e) all above
2. To be eligible for loan under PMEGP, minimum qualification required is class pass in case project
cost is above Rs 10 lakh in the manufacturing sector and above Rs. 5 lakh in the business or service sector –
(a) 8 th (b) 9th (c)5th (d)7th (e) none of the above
3. To be eligible under PMEGP, the applicant's age should be :
(a) not-more than 40 years (b) not less than 18 years (c) between 25 to 40 years (d) abovel 8 years
4. Under PMEGP, ________ % of the margin money (subsidy) should go to projects in rural areas:
(a) 25% (b) 40% (c) 30% (d) 60% (e) 50%
5. To be eligible for assistance under PMEGP, family income of the applicant should not exceed:
(a) Rs. 24,000 p.a. (b) Rs. 30,000 p.a. (c) Rs.40,000 p.a. (d) Rs. 60,000 p.a. (e) No limit
6. Under PMEGP, the repayment period can be after moratorium period as per bank discretion.
(a) 3 to 5 year (b) 3 to 7 year (c) 5 to 7 year (d) 5 to 9 year (e) None of these
7. Rate of subsidy available under PMEGP is :
(a) General-category borrowers: 15% of project cost in urban areas and 25%o. in rural areas;
(b) Special category borrowers: 25% of project cost in urban areas and 35% in rural areas.
(c) 15% in rural areas and 25% in urban areas for general category borrowers
(d) Both (a) & (b) above (e) None of these
8. Under PMEGP, the borrower is required to contribute% of project cost as margin money :
(a) 5% for special category and 10% for general category
(b) 10% for special category and 5% for general category
(c) 5% for special category as well as general category
(d) 10% for special category as well as general category (e) none of the above
9. Maximum Project cost in the case of single borrower for business & service category under PMEGP is:
(a) Rs. 10 lakhs (b) Rs. 25 lakh (c) Rs.5 lakhs (d)Rs. 2 lakh (e) None of these
10. Under PMEGP scheme, rural area means place notified as rural area in revenue records and with
population:
(a) up to 10,000 (b)less than 10,000 (c) up to 50,000 (d)up to 20,000 (e) None of these
11. Banks will not insist on collateral security from beneficiaries under PMEGP for loans up to:
(a) Rs. 10 latch (b) Rs. 5 lakh (c) Rs. 1 lakh (d) Rs. 50,000 (e) Rs. 3 lakh
12. Banks should lend at least ___ % of advances under PMEGP to SC/ST
(a) 10% (b) 22.5% (c) 35% (d) 50% (e) None of these
13. Which of the following is not true about PMEGP scheme:
(a) There is no condition for education for project up to Rs 10 lac for industry and Rs 5 lac for service.
(b) There is no limit on Family income. (c) It is not applicable in J&K.
(d) it covers both the rural as well as urban centres
(e) The maximum cost of project for industry is Rs.25 lac and for service & business Rs 10 lakh.
14. Maximum Project cost in the case of single borrower for business & service category under PMEGP is:
(a) Rs. 10 lakhs (b) Rs. 25 lakh (c) Rs.5 lakhs (d)Rs. 2 lakh (e) None of these
15. For which of the following category of beneficiaries, targets have been set up under PMEGP?
(a) SC/ST (b) Women (c) physically handicapped (d) all of these (e) None of these
16. PMEGP is applicable in which of the following areas?
(a) Rural only (b) urban areas only (c) Both Rural and urban areas (d) None of these
17. Which of the following is not correct regarding PMEGP scheme?
(a) Both existing and new projects are eligible (b) Only one person from one family is eligible

(c) Family includes beneficiary and spouse (d) No concession in interest rate(e) None of these
18. Village Industry under PMEGP, means a unit located in the rural area which produces any goods or
renders any service with or without the use of power and in which the fixed capital investment per head
of a full time artisan or worker does not exceed :
(a) Rs. 1 lakh in plain areas (b) Rs.1.50 lakh in hilly areas (c) Rs 2 lac in North East
(d) Both (a) & (b) (e) All of these
9. Identification of beneficiaries under PMEGP will be done at the district level by a Task Force consisting
of representatives from:
(a) KVIC/State KVIB (b) State DICs (c) Banks (d) Both (a) & (b)(e) All of these.
!0. For the purpose of PMEGP scheme, which of the following is not included in special category?
(a) SC / ST, OBC (b) Minorities, Women (c) Ex servicemen & Physically handicapped
(d) North East, Hill and Border areas . (e) None of these
1. Which of the following is not correct regarding margin money (subsidy) under PMEGP?
(a) Subsidy should be kept in the Term Deposit Receipt of three years
(b)No interest will be paid on the TDR & no interest to be charged on loan on corresponding amount of TDR
(c) Subsidy will be credited to the Borrowers loan account after three years from the date of
first disbursement to the borrower.
(d) If loan goes bad before 3 year period, due to reasons, beyond the control of the beneficiary, subsidy can
be credited to loan account before 3 years (e) None of these
22. Under which situations, proportionate or entire subsidy for working capital component has to be returned?
(a) When utilization of limit does not touch 100% limit of CC on any day within three years of lock in period.
(b) When utilization of the sanctioned limit is less than 75% (c) either (a) or (b) (d) None of these
23. Which of the following is correct regarding training of beneficiaries under PMEGP?
(a) First instalment of loan will be released only after completion of EDP training of at least 2 weeks
(b) If beneficiary has undergone training from the recognized institution, no further EDP training is required.
(c) Both (a) & (b) (d) None of these
24. Which of the following is not correct regarding project cost in case of PMEGP scheme?
(a) Project cost will include Capital Expenditure and one cycle of Working Capital.
(b) Projects without Capital Expenditure are not eligible for financing under the Scheme.
(c) Projects. costing more than Rs.5•Iakh, not requiring working capital, need clearance from RO.
(d) Cost of the land should not be included in the Project cost. (e) None of these
25. Under which situations, proportionate or entire subsidy for working capital component has to be returned?
(a) When utilization of limit does not touch 100% limit of CC on any day within three years of lock in period.
(b) When average utilization of the sanctioned limit is less than 75%
(c) When average utilization of the sanctioned limit is lesS than 80%
(d) either (a) or (b) (e) Either (a) or (c)
26. Which of the following is correct regarding training of beneficiaries under PMEGP?
(a) First instalment of loan will be released only after completion of EDP training of at least 2 weeks
(b) If beneficiary has undergone training from the recognized institution, no further EDP training is required.
(c) Both (a) & (b) (d) None of these
27. Which of the following is not correct regarding project cost in case of PMEGP scheme?
(a) Project cost will include Capital Expenditure and one cycle of Working Capital.
(b) Projects without Capital Expenditure are not eligible for financing under the Scheme.
(c) Projects costing more than Rs.5 lakh, not requiring working capital, need clearance from RO.
(d) Cost of the land should not be included in the Project cost. (e) None of these
28. Which of the following is not eligible for loans under the scheme?
(a) Self Help Groups (b) Institutions registered under Societies Registration Act, 1860
(c) Production Co-operative Societies (d) Charitable Trusts (e) None of these

ANSWER
Q A Q A Q A Q A Q A
1 E 2 A 3 D 4 E 5 E
6 B 7 D 8 A 9 A 10 D
11 A 12 E 13 C 14 A 15 E
16 C 17 A 18 C 19 D 20 E
21 D 22 E 23 E 24 E 25 D
26 B 27 E 28 E

New Updated PDF for MSME

New Updated PDF  for MSME

Download link here:

https://drive.google.com/file/d/1vYD1oGrlYSfhh4RfG-bX_XQ55u1U6Wg2/view?usp=sharing


Read corresponding  IIBF book 1st Macmillan / Taxmann.



These all materials are extra information to get knowledge.



All the best

New Updated PDF for KYC AML

New Updated PDF  for KYC AML

Download link here:

https://drive.google.com/file/d/15kAUTcbvNZfUoMz2yPcpyjol89UqbIdo/view?usp=sharing


Read corresponding  IIBF book 1st Macmillan / Taxmann.



These all materials are extra information to get knowledge.



All the best

Current Affairs on August 29th 2018

Today's Headlines from www:

*Economic Times*

📝 Jet Airways gets $300 million as lease incentives & debt from banks

📝 Chandrayaan-2 to be launched in Jan 2019: ISRO chief

📝 LIC to buy 14.9% stake in IDBI Bank

📝 Rural LPG delivery to get IT legup

📝 Government to vet GST, income tax and transfer pricing filings to find leakage

📝 India to be one of world's blockchain leaders by 2023: Survey

📝 Coal imports may rise to 62 mt in FY19 to meet power demand

📝 RBI employees' 2-day mass leave to paralyse banking operations

*Business Standard*

📝 Toyota Motor to invest $500 million in Uber's self-driving technology

📝 FMCG grows at 10.9% in June quarter, lower than 14% in 2017: Nielsen

📝 Tiger Global-backed robotics start-up GreyOrange enters US market

📝 Nestle seals a $7.15-billion deal to market products of Starbucks

📝 Irdai allows inclusion of 10 more insurers for medical treatments

📝 SAIL closing in on NMDC's iron ore capacity

📝 Railways to convert diesel locomotives to electric, says Piyush Goyal

*Financial Express*

📝 Narvar raises $30 million in Series C funding led by Accel

📝 Total losses of 21 PSBs in Q1 stand at Rs 16,615 crore

📝 Indian firms lead IT transformation in Asia: Dell EMC

📝 United India Insurance gets Rs 350-crore claims from Kerala

📝 Bharti Airtel gets FDI clearance to offload 20% stake in DTH unit to Warburg Pincus

📝 RBI cancels licence of Tech Mahindra for issuing pre-paid cards

📝 Food grain output to be record 284.83 million tonnes

📝 SpiceJet set to venture into cargo operations

*Mint*

📝 Amazon Pay said to acquire Tapzo in digital payments push

📝 EESL to get $220 mn from IBRD for green projects

📝 Instamojo targets $1 billion in transactions by 2019

📝 Vedanta bags 41 oil, gas blocks in maiden open acreage auction

📝 SBI plans to sell 3.89% stake in NSE

📝 Gadkari comes to rescue of ₹8,500 crore rail corridor project

📝 Google teams with HDFC Bank, ICICI, others for instant loans.

Tuesday, 28 August 2018

RISK BASED supervision abbrevetions

ADF
Automated Data Flow
ARIMA
Autoregressive Integrated Moving Average
BC
Business Correspondents
BFS
Board for Financial Supervision
BI
Business Intelligence
BIS
Bank for International Settlements
BO
Business Objects
BSR
Basic Statistical Returns
CBS
Core Banking Solution
CDS
Credit Default Swap
CGM
Chief General Manager
CIO
Chief Information Officer
CISO
Chief Information Security Officer
CSO
Central Statistics Office
CTO
Chief Technology Officer
DBIE
Database of Indian Economy
DBOD
Department of Banking Operations and Development
DBS
Department of Banking Supervision
DEPR
Department of Economic and Policy Research
DFMS
Data Flow Monitoring System
DGI
Data Gap Initiative
DIT
Department of Information Technology
DNBS
Department of Non-Banking Supervision
DSB
DSIM
Department of Supervision- Banking
Department of Statistics and Information Management
DW
Data Warehouse
ECB
European Central Bank
EDW
Enterprise Data Warehouse
ETL
Extraction, Transformation and Loading
FI
Financial Inclusion
FID
Financial Institutions Division
FSI
Financial Soundness Indicator
HSUI
Housing Start-Up Index
IDRBT
Institute for Development & Research in Banking Technology
IFC
Irving Fisher Committee (on Central Bank Statistics at BIS)
IIT
Indian Institute of Technology
IMF
International Monetary Fund
IRISc
Integrated Risk and Impact Scoring (Model)
ISI
Indian Statistical Institute
IT
Information Technology
MIS
Management Information System
MOF
Master Office File
NBFCs
Non-Banking Financial Companies
NBFCs-D
NBFCs - Deposit taking
NBFCs-ND
NBFCs - Non-deposit taking
NBFCs-ND-SI
NBFCs- Non-Deposit taking  - Systemically Important
NBS
Non-Banking Supervision
NCB
National Central Bank
OECD
Organisation for Economic Co-operation and Development
OEM
Original Equipment Manufacturer
OLAP
On-line Analytical Processing
ORFS
Online Returns Filing System
PCGM
Principal Chief General Manager
RBI
Reserve Bank of India
RBS
Risk-Based Supervision
RDBMS
Relational Database Management System
RPCD
Rural Planning and Credit Department
RRB
Regional Rural Bank
RTGS
Real Time Gross Settlement
SCB
Scheduled Commercial Bank
SDDS
Special Data Dissemination Standard
SDMX
Statistical Data and Metadata Exchange
SFTP
Secure File Transfer Protocol
SSM
Senior Supervisory Manager
StCB
State Co-operative Bank
UBD
Urban Banks Department
UCB
Urban Co-operative Bank
XBRL
eXtensible Business Reporting Language
XSD
XML Schema Definition

The Consumer Protection Act, 1986

The Consumer Protection Act, 1986
This Act was passed “to provide for better protection of the interest of
consumers and to make provision for the establishment of consumer councils
and other authorities for the settlement of consumer’s disputes.” The Act has
been amended by the Consumer Protection (Amendment) Act, 2002.
a) Definitions under the Act
Some definitions provided in the Act are as follows:
Definition
“Service” means service of any description which is made available to potential
users and includes the provision of facilities in connection with banking,
financing, insurance, transport, processing, supply of electrical or other energy,
board or lodging or both, housing construction, entertainment, amusement or
the purveying of news or other information. But it does not include the
rendering of any service free of charge or under a contract of personal service.
Insurance is included as a service
“Consumer” means any person who:
i. Buys any goods for a consideration and includes any user of such goods.
But does not include a person who obtains such goods for resale or for
any commercial purpose or
ii. Hires or avails of any services for a consideration and includes
beneficiary of such services.
'Defect' means any fault, imperfection, shortcoming inadequacy in the quality,
nature and manner of performance which is required to be maintained by or
under any law or has been undertaken to be performed by a person in
pursuance of a contract or otherwise in relation to any service.
'Complaint' means any allegation in writing made by a complainant that:
i. An unfair trade practice or restrictive trade practice has been adopted
ii. The goods bought by him suffer from one or more defects
iii. The services hired or availed of by him suffer from deficiency in any
respect
iv. Price charged is in excess of that fixed by law or displayed on package
Goods which will be hazardous to life and safety when used are being
offered for sale to the public in contravention of the provisions of any law
requiring trader to display information in regard to the contents, manner
and effect of use of such goods
'Consumer dispute' means a dispute where the person against whom a
complaint has been made, denies and disputes the allegations contained in the
complaint.


b) Consumer disputes redressal agencies
Consumer disputes redressal agencies are established in each district and
state and at national level.
i. District Forum: The forum has jurisdiction to entertain complaints,
where value of the goods or services and the compensation claimed is up
to Rs. 20 lakhs The District Forum is empowered to send its order/decree
for execution to appropriate Civil Court.
ii. State Commission: This redressal authority has original, appellate and
supervisory jurisdiction. It entertains appeals from the District Forum. It
also has original jurisdiction to entertain complaints where the value of
goods/service and compensation, if any claimed exceeds Rs. 20 lakhs but
does not exceed Rs. 100 lakhs. Other powers and authority are similar to
those of the District Forum.
iii. National Commission: The final authority established under the Act is
the National Commission. It has original; appellate as well as supervisory
jurisdiction. It can hear the appeals from the order passed by the State
Commission and in its original jurisdiction it will entertain disputes,
where goods/services and the compensation claimed exceeds Rs.100
lakhs. It has supervisory jurisdiction over State Commission.
All the three agencies have powers of a Civil Court.
c) Procedure for filing a complaint
The procedure for filing a complaint for the three redressal agencies
mentioned above is very simple. There is no fee for filing a complaint or
filing an appeal whether before the State Commission or National
Commission.
The complaint can be filed by the complainant himself or by his authorised
agent. It can be filed personally or can even be sent by post. It may be
noted that no advocate is necessary for the purpose of filing a complaint.
d) Consumer Forum orders
If the forum is satisfied that the goods complained against suffer from any of
the defects specified in the complaint or that any of the allegations
contained in the complaint about the services are proved, the forum can
issue an order directing the opposite party to do one or more of the
following namely,
i. To return to the complainant the price, [or premium in case of
insurance], the charges paid by the complainant
ii. To award such amount as compensation to the consumers for any loss or
injury suffered by the consumer due to negligence of the opposite party
iii. To remove the defects or deficiencies in the services in question

iv. To discontinue the unfair trade practice or the restrictive trade
practice or not to repeat them
v. To provide for adequate costs to parties
e) Consumer disputes categories
The majority of consumer disputes with the three forums fall in the
following main categories, as far as the insurance business is concerned:
i. Delay in settlement of claims
ii. Non-settlement of claims
iii. Repudiation of claims
iv. Quantum of loss
v. Policy terms, conditions etc



Retail Banking mcqs

Q.1. What is retail Banking?
a. Banking targetted at corporates
b. Banking focused towards weaker class segment
c. Banking deals with individuals and lends them money
d. Banking deals with wholesalers for deposits source
e. Both (a) and (c)
Q.2. Characteristics of retail banking?
a) Targeted at individual customers, and mass market segment
b) Offer various liability, assets and service products to individuals
c) Both (a) and c)
d) Delivery model of ATMs/internet and mobile banking
e) All above
Q.3. What are the advantages of retail Banking?
a) Spread of risk across customers /customers loyalty and attractive interest spreads.
b) Spread of credit risk to diversified customers and lesser volatility in demand and credit cycle
c) Large number of customers with selection possibility by scroing system.
d) Both and (a) and (c)
e) Both (d) and (b)
Q.4. Mark the problems in retail banking?
(a) Managing large number of customers and /or rapid evolution of services.
(b) Costs of maintaining low value transactions, (c) Higher
(d) delinquencies is unsecured retail loans and credit card receivables. All of above
(e) Both (a) and (c)
Q.5. Reasons for retail banking in India are :-
(a) Growing urban population/higher disposable income/increase in mass affluents space and explosion of service economy. (b)
Foreign banks and private sector banks seriously looking at the bottom of customers alongwith credit and debit cards
receivables. (c) Despite credit and deposits growth, banking access remains limited to few sections of the population, (d) Both
(b) and (c), (e) Both (a) + (b)
Q.6.Which is relevant to bank's balance sheet?
(a) ABSA (b) NASA (c) CASA (d) NBFC
Q.7.Define the retail assets under Retail Banking?
(a) Housing loans/consumer durables /credit card receivable
(b) Auto loans/personal loans/loan against shares and debenture
(c) ECS Loans/EFT Loans/CASA Loans
(d) Both (a) and (c)
(e) Both (a) and (b) only
Q.8. Which is highest in number of commercial banks in India?
a) Branches
b) ATMs
c) Extension Counters
d) Mobile Banking
e) Internet Banking
Q.9. What is the contribution of bank's retail assets to Gross Domestic Product (GDP) in India?
( a ) 6 % ( b ) 1 5 % ( c ) 3 3 % ( d ) 2 4 % ( e ) 3 %
Q.10. What is not a constraint in Retail Banking?
a. Managing large number of clients in absence of ROBUST IT system
b. Rapid evolution of services
c. Maintaining ATMs centres with low costs
d. Unsecured retail loans and credit and receivables amount

Q.11. What is business model for retail banking in India?
a. Strategic business unit approach
b. Departmental Approach
c. Integrated approach
d. Any one of above
e. Both (a) and (b) only
Q.12. Give the names of foreign banks which entered the retail banking activities butwhen notableto achieve the business objectives moved out of business?
a. BNP Paribas
b. American Express
c. ABN Amro (Now RSB) bank
d. Citi Bank
e. All (a) to (c)
Q.13. In retail banking which business model is adopted generally by Public Sector Banks?
a. Strategic Business Unit
b. Departmental Approach
c. Integrated Approach
d. Management by Objective Approach
Q.14. Which business model in retail banking is do adopt by new generation private sector banks
a) Strategic business unit approach
b) Departmental Approach
c) Integrated approach (part of overall business plan)
(d) Management by Objective Approach
Q.15. During 1990s, certain foreign banks went for business model in retail banking, but after certain years?
a. Continued with their business inspite of being unprofitable
b. Changed their focus with some strategic changes
c. Movedout of the business
d. None of above
Q.16. Discuss the liability products offered to retail banking customers?
a. Savings Accounts
b. Current Accounts/Term deposit accounts
c. Housing Loans/consumer durables/auto loans/credit-cards easy payments
d. Both (a) + (b)
e. All (a) to (c)
Q.17. In Liability products of retail banking what are different value propositions?
a) ATMs/Debit cards/Credit Cards/Multicity cheques, built in with savings A/c
b) Internet banking/phone banking/mobile banking tagging group insurance products to life and non-life/money sweep facilities from savings to fixed
deposits.
c) Both (a) and (b)
d) Auto overdraft facility only
Q.18. Retail asset financing is a major component of retail banking. Discuss what are those assets?
a. Housing Loans/Loan against rental receivables
b. Consumer durable loans /credit cards/salary overdraft
c. Auto loans/personal loans/loans against securities
d. All above
e. Only (a) and (c)
Q.19. Discuss the other services which are tagged under retail banking?
a) Housing loan/consumer durables loan/auto loans/personal loan/ credit card receivables
b) Saving/term/current deposits
c) Debit Cards/ATM cards/telephone banking/mobile banking
d) Internet banking/demat services/brooking services/insurance policies/mutual funds/sale of gold coins/wealth management services
e) Both (a) and (c)
Q.20. Processing of services in retail banking is basically approached, from which dimension?
a. In-house resource

b. Some products processed in house and some are outsourced
c. Outsourcing of entire process
d. AU above
Q2I. The entire process for products and services in retail banking is done though in house resource by which category of
banks?
a. Public Sector Bank (PSB)
b. Old Private Sector and PSBs
c. New Private Sector Banks
d. Foreign Banks
Q.22. Banks adopt different process models for retail asset products and services, to build absolute process efficiencies?
a. Centralised retail asset processing centres
b. Centralised processing for some assets only
c. Regional processing hubs
d. Stand alone processing at branches (e) Any of above
Q.23. What are the process models which commonly banks adopt for retail liability?
a. Centralised processing for opening of account/issue of PB/ Cheque book/ATM card
b. Regional processing Hubs, all above activities
c. Opening of SB A/cs at branches add issue of PB and cheque book/ ATM Cards/PIN Mailers also at the stand alone,
(d) Any of above
Q.24. In pricing of products and services is based on certain fundamental parameters. Which are those parameters?
a) Market dynamics/risk perception/return expectations/customer profile
b) Tenor/duration/resources position/asset-liability management position
c) Any of above
d) Both (a) and (b)
25. Pricing of products and services in banks is mainly driven on the basis of bases?
a. Asset Liability Management
b. Regulatory advices from RBI
c. Structured step up pricing practice
d. Both (a) and (b)
Q.26. Price structuring for products and services is attempted by banks in the following ways -
(a) Stand alone pricing for different services
(b) Special concessional quotes for high net worth depositors and retail depositors
(c) Bundled pricing/Holistic pricing based on total relationship (d) All above (e) Any of above
Q.27. Why structuring is adopted by banks in retail banking?
Offer holistic pricing across of specific bundling of services so the total price proposition becomes attractive customer
Offer holistic pricing across of specific bundling of services so the total price proposition becomes profitable to bank
Offer holistic pricing across of specific bundling of services so the total price proposition becomes attractive to high net worth clients only d) All above
Q.28. Which category of banks adopt price bundling of product and services?
(a) Public sector banks (b) Private sector banks
(c) Foreign banks
(d) Both (b) and (c)
Q.29. Public sector banks (nationalised + IDBI bank + SBI and 5 associates and Bhartiya Mahilla Bank Ltd.) have price concerns as well as rebates in
pricing structure. What is the basis of its application?
a) Volumes of transaction
b) Quantum
c) Relationship with bank d) All above
30. Banks do have structure for pricing additional models. Under it what are benefits made available to customers other than rebates of discounts as
alternative pricing propositions?
(a) Free remittance facilities
(b) Issue of demand drafts free of charges
(c) Waiver of service or processing charges (d) All above e) Any of above
Q.31. Technology and retail banking are inseparable. Technology is the enabler for building and translating a customer data base into retail banking business. Such data are
usable to


a. Increase the scope for cross selling
b. Increase the scope for up-selling
c. Get due about the level to which data base is organised
d. aII above
e. Any one of above
Q.32. Distinguish retail banking with corporate banking and state which is retail banking?
a. Individuals segment/mass market/business to customer approach
b. Wholesale clients/smaller segment/business to business approach
c. High ticket size/high risk/low returns/monitoring less laborious
high deposit cost
(d) Both (b) and (c)
Q.33. What special features are there in retail banking compared to wholesale banking?
a) Low NPA impact
b) Cost of deposits lesser
c) Monitoring of advances less laborious
d) Both (a) and (b)
Q.34. To which type of banking we get higher returns/lesser risk/cheaper cost of deposits/impact of NPA lesser/Low ticket size of loan etc.?
a. Retail Banking
b. Wholesale Banking
c. B2B Banking
 (d) Corporate Banking
Q.35. What is the latest level of technology in Public Sector Banks?
ALPM
a) Single Server environment
b) Core banking solution, C) single platform environment (d) Truncation
Q.36. Which implementation model banks adopt in retail banking processes?
a. Horizontally organised model
b. Vertically organised model
c. Predominantly vertically organised model
d. Predominantly Horizontally organised model
e. Anyone of above
Q.37. When is the horizontal model adopted in retail banking?
a. Level of customer information available in a single platform
b. Offering multiple products/services
c. Offering services across assets, liabilities and other services
d. All of above
Q.38. When the vertically organised model provides functionality under retail banking?
a) Centralised Tistomer data base
b) Common informations availability to other models
c) Scope for enlarging the scope for cross-selling and up selling d )All above
Q.39. Which concept of retail banking is adopted under standard norm by PSBs in India?
a. Horizontally organised model
b. Vertically organised model
c. Predominantly vertically organised model
d. Predominantly horizontally organised model
Q.40. What are the basic structure of retail banking?
a) Retail Assets
b) Retail Liability ,c )Third Party Products, d) All above
ANSWER
1 C 2 E 3 E 4 D 5 D 6 A 7 E 8 B 9 A 10 C
11 D 12 E 13 B 14 A 15 C 16 D 17 C 18 E 19 E 20 D
21 B 22 E 23 C 24 D 25 D 26 D 27 A 28 D 29 D 30 D
31 D 32 A 33 D 34 A 35 C 36 E 37 D 38 D 39 A 40 D

Facilities for Non-resident Indians (NRIs)

Facilities for Non-resident Indians (NRIs)
Purpose
v) To hedge the exchange rate risk on the market value of investment made under the
portfolio scheme in accordance with provisions of FERA, 1973 or under notifications issued
there under or in accordance with provisions of FEMA, 1999. For access to ETCD market, see para. 4 below. vi) To hedge the exchange rate risk on the amount of dividend due on shares held in Indian
companies. vii) To hedge the exchange rate risk on the amounts held in FCNR (B) deposits. viii) To hedge the exchange rate risk on balances held in NRE account. Products
ix) Forward foreign exchange contracts with rupee as one of the currencies, and foreign currency-
INR options. x) Additionally, for balances in FCNR (B) accounts – Cross currency (not involving the rupee)
forward contracts to convert the balances in one foreign currency to other foreign currencies in
which FCNR (B) deposits are permitted to be maintained. (c)Terms
9 and conditions for Non-Resident Indians (NRIs) participating in the Exchange
Traded Currency Derivatives (ETCD)
i. NRIs shall designate an AD Cat-I bank for the purpose of monitoring and reporting their combined
positions in the OTC and ETCD segment

(an)NRIs may take positions in the currency futures / exchange traded options market to hedge the
currency risk on the market value of their permissible (under FEMA, 1999) Rupee investments in
debt and equity and dividend due and balances held in NRE accounts. (ao)The exchange/ clearing corporation will provide details of all transactions of the NRI to the
designated bank. (ap)The designated bank will consolidate the positions of the NRI on the exchanges as well as the
OTC derivative contracts booked with them and with other AD banks. The designated bank shall
monitor the aggregate positions and ensure the existence of underlying Rupee currency risk and
bring transgressions, if any, to the notice of RBI / SEBI. (aq)The onus of ensuring the existence of the underlying exposure shall rest with the NRI
concerned. If the magnitude of exposure through the hedge transactions exceeds the magnitude of
underlying exposure, the concerned NRI shall be liable to such penal action as may be taken by
Reserve Bank of India under the Foreign Exchange Management Act (FEMA), 1999.

Current Affairs on August 28th 2018

Today's Headlines from www:

*Economic Times*

📝 Tata Steel on a gender-diversity drive, aims to have 20% female staff in 5 years

📝 Rupee dives to new closing low of 70.16 vs dollar

📝 Berkshire confirms investment in Paytm; Buffett not involved

📝 CP issuance hits all-time high of Rs 4.92L cr in Q1: Icra

📝 Union steel ministry launches Corporate Sports Policy for CPSEs

📝 Suresh Prabhu asks traders to carve out plans for 20% growth in exports

📝 JNPT, Railways & states to sign MoU for Rs 8,574 crore rail project

📝 SHRI group to invest Rs 600 crore on new affordable housing project in Greater Noida

*Business Standard*

📝 Sensex extends record run; Fed says policy tightening pace will be gradual

📝 Total to exit from Hazira LNG venture; to sell 26% stake to Shell

📝 Gautam Adani's energy unit set to acquire GMR thermal power plant

📝 NMDC increases price of lump ore, iron ore fines by Rs 150 a tonne

📝 SBI changes names, IFSC codes of nearly 1,300 branches post merger

📝 India approves use of drones; puts restrictions on delivery of goods, food

📝 Diesel at record high of Rs 69.46 a litre, petrol inches towards Rs 78 mark

*Financial Express*

📝 Banks get 15-day window to resolve stressed assets

📝 SBI plans to divest up to 4% in SBI General Insurance ahead of IPO

📝 China cuts steel exports to India, may target domestic market for growth

📝 Kerala deluge may shave off 2.2% of state GDP, push up fiscal deficit to 5.4%

📝 FDI growth up 23 percent in April-June quarter this fiscal

📝 Japan’s Rakuten details plan to fight back against Amazon, SoftBank

📝 Turkey’s battered lira tumbles again over outlook fears

*Mint*

📝 Jet Airways drafts revival plan after ₹1,323 crore Q1 loss

📝 Shell Gas to acquire Total’s 26% stake in Hazira LNG and Port

📝 SBI seeks to sell other banks’ exposures in Bombay Rayon

📝 KKR to bail out JBF Industries, will buy its petrochemical unit

📝 AION Cap targets $1 billion corpus for new fund

📝 Cap independent directors’ pay from a company to 20%: Govt panel

📝 US, Mexico reach trade deal as Canada may rejoin Nafta talks.

Monday, 27 August 2018

Mutual funds short notes 6

Chapter 11
• The costs mentioned above, in today’s terms, need to be translated into the rupee
requirement in future. This is done using the formula A = P X (1 + i)n, where, A = Rupee
requirement in future, P = Cost in today’s terms, i = inflation & n = Number of years into
the future, when the expense will be incurred.
• The steps in creating a comprehensive financial plan, as proposed by the
Certified Financial Planner – Board of Standards (USA) are as follows:
a. Establish and Define the Client-Planner Relationship
b. Gather Client Data, Define Client Goals
c. Analyse and Evaluate Client’s Financial Status
d. Develop and Present Financial Planning Recommendations and / or
Options
e. Implement the Financial Planning Recommendations
f. Monitor the Financial Planning Recommendations
• During the Childhood stage, focus is on education in most cases. Children
are dependents, rather than earning members. Pocket money, cash gifts
and scholarships are potential sources of income during this phase. Parents

and seniors need to groom children to imbibe the virtues of savings,
balance and prudence. Values imbibed during this phase set the foundation
of their life in future.
• Equity SIPs and Whole-life insurance plans are great ways to force the
young unmarried into the habit of regular savings, rather than lavish the
money away.
• Young Married,where both spouses have decent jobs, life can be financially
comfortable. They can plan where to stay in / buy a house, based on job
imperatives, life style aspirations and personal comfort. Insurance is
required, but not so critical. Where only one spouse is working, life
insurance to provide for contingencies associated with the earning spouse
are absolutely critical. In case the earning spouse is not so well placed,
ability to pay insurance premia can be an issue, competing with other basic
needs of food, clothing and shelter. In such cases, term insurance (where
premium is lower) possibilities have to be seriously explored and locked
into.
• Accumulation is the stage when the investor gets to build his wealth. It
covers the earning years of the investor i.e. the phases of the life cycle from
Young Unmarried to Pre-Retirement.
• Transition is a phase when financial goals are in the horizon. E.g. house to
be purchased, children’s higher education / marriage approaching etc.
Given the impending requirement of funds, investors tend to increase the
proportion of their portfolio in liquid assets viz. money in bank, liquid
schemes etc.
• During inter-generational transfer, the investor starts thinking about
orderly transfer of wealth to the next generation, in the event of death.
The financial planner can help the investor understand various inheritance
and tax issues, and help in preparing Will and validating various documents
and structures related to assets and liabilities of the investor.
• Reaping/Distribution is the stage when the investor needs regular money.
Hence, investors in this stage need to have higher allocation to income
generating assets. It is the parallel of retirement phase in the Life Cycle.
• Winning lotteries, unexpected inheritance of wealth, unusually high capital
gains earned – all these are occasions of sudden wealth, that need to be
celebrated. However, given the human nature of frittering away such
sudden wealth, the financial planner can channelize the wealth into
investments, for the long term benefit of the investor’s family.

Chapter 12
• Risk profiling is an approach to understand the risk appetite of investors
- an essential pre-requisite to advise investors on their investments.
• The investment advice is dependent on understanding both aspects of
risk: Risk appetite of the investor & Risk level of the investment options
being considered.
• Risk appetite increases as the number of earning member increases and
vice-versa.
• Risk appetite is higher if life expectancy is longer
• Lower the age, higher the risk that can be taken and vice-versa
• Well qualified and multi-skilled professionals can afford to take more
risk.
• Those with steady jobs are better positioned to take risk
• Higher the capital base, better the ability to take financially the
downsides that come with risk.
• The distribution of an investor’s portfolio between different asset
classes is called asset allocation.
• Strategic Asset Allocation is the ideal that comes out of the risk profile
of the individual. Risk profiling is key to deciding on the strategic asset
allocation. The most simplistic risk profiling thumb rule is to have as
much debt in the portfolio, as the number of years of age.
• Tactical Asset Allocation is the decision that comes out of calls on the
likely behaviour of the market. An investor who decides to go
overweight on equities i.e. take higher exposure to equities, because of
expectations of buoyancy in industry and share markets, is taking a
tactical asset allocation call. Tactical asset allocation is suitable only for
seasoned investors operating with large investible surpluses.

Current Affairs on August 27th 2018

Today's Headlines from www:

*Economic Times*

📝 Government looks to meet 75% of FY19 selloff target by December

📝 Bankers burn midnight oil to resolve Rs 3.8 tln NPAs

📝 FPIs stay bullish on India, invest Rs 6,700 crore in Aug

📝 ISRO will complete Gaganyaan mission as per schedule: Raghavan

📝 Apollo tyres plans $1bn investments to dethrone MRF

📝 NITI Aayog to review progress of standardisation of Metro rail systems

📝 NBFCs to see up to 35-40% rise in hiring in next 1 yr, say experts

📝 Big willful defaulters' dues to PNB drop to Rs 15,175 crore in July

*Business Standard*

📝 Amazon plans to invest $700 million in Kishore Biyani's Future Group

📝 Budget hospitality start-up OYO is replicating its India strategy in China

📝 Coke to counter growing competition from local brands with refreshed RimZim

📝 Worst may be over for Indian bonds; RBI done with rate hikes: HDFC Standard

📝 RBI must ensure greater participation of banks in gold imports: NITI Aayog

📝 Stressed power assets: 180-day deadline breach not end of road, say bankers

📝 Five years of Companies Act, 2013: Step-up in compliances irks India Inc

*Financial Express*

📝 UPI soars, clocks digital transactions at 43% of those by cards at retail outlets as compared to 4% last year

📝 RBI norms to limit flood impact in the near term

📝 Rocket Internet bets on lesser-known startups to repeat its earlier success

📝 51,837 industries in Delhi under National Green Tribunal scanner

📝 Jobs in corporate India fell sharply over last decade, from around 5-6% per annum then to around 2-3% today

📝 India’s logistics sector to grow to $200 bn in 3 years, government steps will take time to fructify: J Padmanabhan, Crisil

📝 Guess, US-based brand, aims to provide completely new experience in India with its large format lifestyle stores

*Mint*

📝 Govt plans to make compulsory for unlisted firms to issue shares in demat form

📝 SAIL set to exit non-performing, non-operational JV firms

📝 Sebi plans to deploy technology to beef up surveillance activities

📝 Corporate affairs ministry seeks details from crisis-hit Jet Airways

📝 Shubh Loans raises $4.2 million from Saama Capital, others

📝 Marico expects premium brands biz to double in 3-4 years

📝 Liberty House plans to turn ABG Shipyard into steel plant.

Sunday, 26 August 2018

Risk in Financial services recollected on August 25 2018

Recollected qstn.
Rating migration case study- probability calculation of two variables (aa remain aa, then aa to default, calculate probability)
Duration calculation (semi annual, quarter,annual)
Cost of fund, mclr, crr calculation
Cumulative gap case study
Easy case study on Basel 3
Forex numerical case study
Geometric mean
Harmonic mean
Volatility
Var
bpv
case study on CRO