Certified Credit professional Numerical s

Certified Credit professional Numerical s


Assets
Net Fixed Assets - 800
Inventories - 300
Preliminary Expenses - 100
Receivables - 150
Investment In Govt. Secu - 50
Total Assets - 1400
Liabilities
Equity Capital - 200
Preference Capital - 100
Term Loan - 600
Bank C/C - 400
Sundry Creditors - 100
Total Liabilities – 1400
1. Debt Equity Ratio = ?
a. 1:1
b. 1:2
c. 2:1
d. 2:3
Ans - c
Explanation :
600 / (200+100) = 2 : 1
2. Tangible Net Worth = ?
a. 100
b. 200
c. 300
d. 400
Ans - b
Explanation :
Only equity Capital i.e. = 200
3. Total Liabilities to Tangible Net Worth Ratio = ?
a. 7:2
b. 11:2
c. 13:2
d. 15:2
Ans - b
Explanation :
Total Outside Liabilities / Total Tangible Net Worth : (600+400+100) / 200 = 11 : 2
4. Current Ratio = ?
a. 1:1
b. 1:2
c. 2:1
d. 3:1
Ans - a

Explanation :
(300 + 150 + 50 ) / (400 + 100 ) = 1 : 1

Q.2

Assets

Net Fixed Assets - 265

Cash - 1

Receivables - 125

Stocks - 128

Prepaid Expenses - 1

Intangible Assets - 30

Total - 550

Liabilities

Capital + Reserves - 355

P & L Credit Balance - 7

Loan From S F C - 100

Bank Overdraft - 38

Creditors - 26

Provision of Tax - 9

Proposed Dividend - 15

Total - 550

1. Current Ratio = ?

= (1+125 +128+1) / (38+26+9+15)

= 255/88

= 2.89 : 1

2. Quick Ratio = ?

(125+1)/88

= 1.43 : 11

3. Debt Equity Ratio = ?

= LTL / Tangible NW

= 100 / (362 – 30)

= 100 / 332

= 0.30 : 1

4. Proprietary Ratio = ?

= (T NW / Tangible Assets) x 100

= [(362 - 30 ) / (550 – 30)] x 100

= (332 / 520) x 100

= 64%

5. Net Working Capital = ?

= CA - CL

= 255 - 88

= 167

6. If Net Sales is Rs.15 Lac, then What would be the Stock Turnover Ratio in Times ?

= Net Sales / Average Inventories/Stock

= 1500 / 128

= 12 times approximately

7. What is the Debtors Velocity Ratio if the sales are Rs. 15 Lac?



= (Average Debtors / Net Sales) x 12

= (125 / 1500) x 12

= 1 month

8. What is the Creditors Velocity Ratio if Purchases are Rs.10.5 Lac?

= (Average Creditors / Purchases ) x 12

= (26 / 1050) x 12

= 0.3 months

.............................................



Q.3 Current Ratio of a firm is 1 : 1. What will be the Net Working Capital ?

a. 0

b. 1

c. 100

d. 200

Ans - a

Explanation :

It suggest that the Current Assets is equal to Current Liabilities hence the NWC would be

0

(since NWC = C.A - C.L)

.............................................

Q.4 Suppose Current Ratio is 4 : 1. NWC is Rs.30,000/-. What is the amount of Current

Assets ?

a. 10000

b. 30000

c. 40000

d. 50000

Ans - c

Explanation :

Let Current Liabilities = a

4a - 1a = 30,000

a = 10,000 i.e. Current Liabilities is Rs.10,000

Hence Current Assets would be

4a = 4 x 10,000 = Rs.40,000/-

.............................................

Q.5 The amount of Term Loan installment is Rs.10000/ per month, monthly average interest

on TL is Rs.5000/-. If the amount of Depreciation is Rs.30,000/- p.a. and PAT is

Rs.2,70,000/-. What would be the DSCR ?

a. 1

b. 1.5

c. 2

d. 2.5

Ans - C

Explanation :

DSCR = (PAT + Depr + Annual Intt.) / Annual Intt + Annual Installment

= (270000 + 30000 + 60000 ) / 60000 + 12000

= 360000 / 180000

= 2

.............................................

Q. 6     A Company has Net Worth of Rs.5 Lac, Term Liabilities of Rs.10 Lac. Fixed Assets worth

RS.16 Lac and Current Assets are Rs.25 Lac. There is no intangible Assets or other Non

Current Assets. Calculate its Net Working Capital.

a. 1 lac

b. 2 lac

c. - 1 lac





d. - 2 lac

Ans - c

Explanation :

Total Assets = 16 + 25 = Rs. 41 Lac

Total Liabilities = NW + LTL + CL = 5 + 10 + CL = 41 Lac

Current Liabilities = 41 – 15 = 26 Lac

Therefore Net Working Capital = CA – CL = 25 – 26 = (-) 1 Lac

.............................................

Q. 7  Merchandise costs - Rs. 250000, Gross Profit - Rs. 23000, Net Profit - Rs. 15000. Find

the amount of sales.

a. 227000

b. 235000

c. 265000

d. 273000

Ans - d

Explanation :

Amount of sales = Merchandise costs + Gross Profit

= 250000 + 23000

= 273000

.............................................

Q.8 Total Liabilities of a firm is Rs.100 Lac and Current Ratio is 1.5 : 1. If Fixed Assets and

Other Non Current Assets are to the tune of Rs. 70 Lac and Debt Equity Ratio being 3 :

1. What would be the Long Term Liabilities?

a. 40 Lacs

b. 60 Lacs

c. 80 Lacs

d. 100 Lacs

Ans - b

Explanation :

Total Assets = Total Liabilities = 100 Lac

Current Asset = Total Assets - Non Current Assets

= Rs. 100 L - Rs. 70 L

= Rs. 30 L

If the Current Ratio is 1.5 : 1

then Current Liabilities works out to be Rs. 20 Lac.

That means, Net Worth + Long Term Liabilities = Rs. 80 Lacs.

If the Debt Equity Ratio is 3 : 1,

then Debt works out to be Rs. 60 Lacs and equity Rs. 20 Lacs.

Therefore the Long Term Liabilities would be Rs.60 Lac.

.............................................

Q.9 Current Ratio = 1.2 : 1.

Total of balance sheet being Rs.22 Lac.

The amount of Fixed Assets + Non Current Assets is Rs. 10 Lac.

What would be the Current Liabilities?

a. 10 Lacs

b. b. 12 Lacs

c. 16 Lacs

d. 22 Lacs

Ans - a

Explanation :

Total Assets is Rs.22 Lac.

Fixed Assets + Non Current Assets is Rs. 10 Lac

Then Current Assets = 22 – 10 = Rs. 12 Lac.

Current Ratio = 1.2 : 1

Current Liabilities = Rs. 10 Lac

.............................................


Q.10 M/s Raj&co's balance sheet included the following accounts:

Cash: 10,000

Accounts Receivable: 5,000

Inventory: 5,000

Stock Investments: 1,000

Prepaid taxes: 500

Current Liabilities: 15,000

Find the Quick Ratio

Quick Ratio = Cash + Cash Equivalents + Short Term Investments + Marketable

Securities + Accounts Receivable) / Current Liabilities

= (10000+5000+1000) / 15000

= 16000 / 15000

= 1.07

.................................

Q.11 M/s Raj&co's balance sheet included the following accounts:

Inventory : 5,000

Prepaid taxes : 500

Total Current Assets : 21,500

Current Liabilities : 15,000

Find the Quick Ratio

Quick Ratio = (Current assets – Inventory - Advances - Prepayments Current Liabilities) /

Current Liabilities

= (21500 - 5000 - 500) / 15000

= 16000 / 15000

= 1.07

.................................



Q.12 XYZ Pvt Ltd has the following assets and liabilities as on 31st March 2015 (in Lakhs) :

Non Current Assets

Goodwill 75

Fixed Assets 75

Current Assets

Cash in hand 25

Cash in bank 50

Short term investments 45

Inventory 25

Receivable 100

Current Liabilities

Trade payables 100

Income tax payables 60

Non Current Liabilities

Bank Loan 50

Deferred tax payable 25

Find the Quick Ratio

Quick Ratio = (Cash in hand + Cash at Bank + Receivables + Marketable Securities) /



Current Liabilities

= (25+50+45+100) / 160

= 220 / 160

= 1.375

.................................





Q.14 GHI Ltd. manufacturers two products :Product G and Product H. The Variable cost of the manufacture is as

follows:

Product G Product H

Direct Material 3 10

Direct Labour (Rs.6 per hour) 18 12

Variable Overhead 4 4

Ethics in Banking

Ethics in Banking

An ethical bank, also known as a social, alternative, civic, or sustainable bank, is a bank concerned with the social and environmental impacts of its investments and loans. The ethical banking movement includes: ethical investment, impact investment, socially responsible investment, corporate social responsibility, and is also related to such movements as the fair trade movement, ethical consumerism, and social enterprise

What is Ethics
Ethics is a set of principle of right conduct. They are the Rules or standards governing the conduct of a person or the members of a profession or organisation. They help us examine whether a practice or conduct is good or bad within the context of a moral duty.


What is Value
A value is an enduring belief that a specific mode of conduct or a certain end state of existence is personally or socially preferable to an opposite or converse mode of conduct or end state of existence

.

Other areas of ethical consumerism, such as fair trade labelling, have comprehensive codes and regulations which must be adhered to in order to be certified. Ethical banking has not developed to this point; because of this it is difficult to create a concrete definition that distinguishes ethical banks from conventional banks. Ethical banks are regulated by the same authorities as traditional banks and have to abide by the same rules. While there are differences between ethical banks, they do share a desire to uphold principles in the projects they finance, the most frequent including: transparency and social and/or environmental values. Ethical banks sometimes work with narrower profit margins than traditional ones, and therefore they may have few offices and operate mostly by phone, Internet, or mail. Ethical banking is considered one of several forms of alternative banking.

Environmentally and socially conscious business practices
In general banks play an intermediary role in the economy; because of this the possibility for banks to contribute to sustainable development is extensive. Jeucken 2002 Banks have efficient and tested credit approval systems, which gives them a comparative advantage in knowledge (regarding sector-specific information, legislation and market developments).Jeucken & Bouma 1999 Banks are experienced and capable of weighing risks and attaching a price to these risks; because of this banks can fulfill an important role in reducing the information asymmetry between market parties and allow them to make better decisions. When depositors allow a bank to invest for them they may assume that the bank will attempt to select investments to maximize their returns. However, if clients are concerned with more than the simple monetary return and they, for instance, are interested in the costs to society and to the environment, then they may need to turn to an ethical bank which takes their ethics and morality into account when investing.

Some businesses externalize costs onto the environment and society. Aiming to create a more equitable distribution of costs in society, banks can raise interest rates or apply tariffs on loans given to clients and projects with high external costs. This would mean that companies would pay more if their business caused extensive environmental damage; taking some of the cost off of society as a whole and putting it on the company. This sort of tariff differentiation could stimulate the internalization of environmental costs in market prices.Jeucken & Bouma 1999 Through such price differentiation, banks have the potential to foster sustainability.Jeucken & Bouma 1999.

Banks may be able to support progress toward sustainability by society as a whole—for example, by adopting a ‘carrot-and-stick’ approach, where environmental and social front-runners would pay less interest than the market price for borrowing capital, while environmental laggards would pay a much higher interest rate.Jeucken & Bouma 1999 Banks can also develop more sustainable products, such as environmental, social, or ethical investment funds. By investing selectively based on values, ethical banks can promote socially/environmentally responsible companies and penalize those who do not conform to these standards. But there is a risk that banks could simply adopt certain practices that make them appear ethical (see greenwashing) while not adopting other practices that would have a greater impact



Ethics can be defined as a system of criteria and measures examining the values, norms and
rules underlying the individual and social relations on such moral grounds as right and wrong
or good and bad. Professional ethics regulates the relationships of members of the relevant
profession with each other and with society, and defines organizational ethics and in-house
behavioral culture by imposing certain rules for resolution of problems originating from
inside or outside the organization.
Performing the investment and saving functions by playing the role of a unifier and mediator
in the society between parties offering and demanding funds, banks, as a part of marketplace,
mainly and naturally target the profitability and productivity principles, which requires them
to operate in strict compliance with certain professional and organizational ethics principles.
Departing from the objectives of growth of banking system, enhancement of banking service
quality, best use of resources, creation of a fair and honest competitive environment among
banks, and prevention of unfair competition, banks are required and expected to regulate their
relations with each other and other organizations, and with their customers, shareholders and
employees in accordance with these ethical principles.



Ethics or moral philosophy is a branch of philosophy that involves systematizing, defending, and recommending concepts of right and wrong conduct. The field of ethics, along with aesthetics, concerns matters of value, and thus comprises the branch of philosophy called axiology.

Ethics seeks to resolve questions of human morality by defining concepts such as good and evil, right and wrong, virtue and vice, justice and crime. As a field of intellectual inquiry, moral philosophy also is related to the fields of moral psychology, descriptive ethics, and value theory.

Three major areas of study within ethics recognized today are:

Meta-ethics, concerning the theoretical meaning and reference of moral propositions, and how their truth values (if any) can be determined

Normative ethics, concerning the practical means of determining a moral course of action

Applied ethics, concerning what a person is obligated (or permitted) to do in a specific situation or a particular domain of action



Our Responsibilities

• What Do We Need to Do? Our Responsibilities
• As an Employee, We are Bank’s Brand Ambassador. Delivering the Promise of Banks  Brand rests on us.
• We are expected to:
• Be familiar with, understand and follow the Bank’s Ethics Code in letter and spirit.
• Commit to it as prescribed.
• Be familiar with the policies and procedures relevant to our current role.
• Ask any questions we have about the Code, policies & procedures and how they apply to us.
• Keep the values of STEPS in mind and treat colleagues & customers with respect to protect our reputation.
• Speak up and report a suspected violation of the Code, policies, procedures or law.
• Refer to the Ethical Decision-Making Guide or relevant policy in Resources Section of the Code, if we are not sure on what to do in a situation.
• Understand the Code and be in a position to guide our team properly.
• Foster a culture of ethics & uphold the spirit of the Code in daily actions.
• Make sure that our team feels comfortable in asking questions or raising concerns.
• Never tolerate retaliation or allow others to do so.
• Make sure that we have appropriate delegation before entering into any transaction or risk on behalf of Bank.
• Report a misconduct or to take action to redress the same

SERVICE
Serving our Customers
• We are aware that the Bank is committed to providing best-in-class products, services & solutions to the customers that are consistent with their needs and circumstances.
• We shall make our customers feel valued and important in each transaction.
• We shall treat our customers in the way we want to be treated ourselves.
• We shall put customers’ need above our own and serve them with a smile.
• We shall help our customers to make informed financial decisions.
• We shall treat our all customers fairly regardless of caste, creed, race, religion, disability or gender.
• We shall always seek customer feedback to improve the customer experience.
DOs
• Say “Thank you” to customers after doing their work.
• Listen with empathy - Always.
• Focus on customers’ needs.
• Keep yourselves updated to respond to customers’ queries.
DON’Ts
• Let customers wait.
• Attend to other tasks when dealing with a customer.
• Be inconsistent.

TRANSPARENCY
• Transparency
• Being Transparent we shall respect the right of customers for openness and transparency in their dealings with us at all times.
• We shall be truthful and responsible in all our transactions with all stakeholders.
• We shall always act in good faith and with due care while dealing with internal or external constituencies.
• DOs
• Be open and transparent in your dealings.
• Be accurate while exchanging information about Bank.
• DON'Ts
• Conceal or misrepresent facts regarding a product or service with anyone.
• Misconstrue a transaction.
• Mislead or cover up information while dealing with others
ETHICS Handling Conflicts of Interest- Actual, Potential or Perceived: Competing Fairly
• We are aware that the Bank has faith in open and fair competition and believes in having the competitive advantage through superior performance and shall act with the same spirit.
• We shall deal fairly with our customers and not place our desire to increase our performance before their best interests. For example, we shall not impose undue pressure on a customer or a potential customer to obtain another product or service from us as a precondition of approving a request for a Banks’ product or service.
• DOs
• Compete in good faith.
• Be fair - Always.
• DON’Ts
• Share sensitive information with competition.
• Be unfair while competing.


POLITENESS
Being Polite in Treating Customers
• We shall offer a polite, courteous and empathetic experience to our customers in their interactions with us.
• We shall ensure that we are understanding and understood while dealing with customers and seek to listen them more than we talk.
• We shall project an efficient image of the Bank by being punctual and adhering to the workplace discipline.
• We shall dress* well and convey a seemly impression of the Bank while dealing
• With customers, colleagues and public at large. * [However, there will be no bar in following a religious dress code applicable to any community.]
• DOs
• Determine customers’ need responsibly.
• Consider customers’ circumstances before giving advice especially in case of loans.
• Be a preferred choice of customers - Always.
• Dress smartly - Always.
• DON’Ts
• Be inattentive to a customer.
• Be irresponsible in meeting customer expectation


SUSTAINABILITY
Contributing to the Communities Around
We shall champion sustainability and invest time & resources to make our communities a better place to live and work.
• We shall be engaging with sustainable banking by promoting innovative products & services that protect and conserve our natural resources.
• We shall be pro-active about minimizing carbon footprint through waste minimisation, pollution prevention and adopting clean technology wherever feasible.
• DOs
• Connect with communities around - Give back.
• Be sensitive to social & environmental risks.
• Reduce, reuse & recycle.
• Conserve natural resources.
• DON’Ts
• Waste resources.
• Ignore social conscience.
Avoid participation in the projects that benefit communities.

Current Affairs on 28.02.2019

Today's Headlines from www:

*Economic Times*

📝 India’s GDP growth seen at 6.7-7.2% in 3rd quarter

📝 Air India seeks to raise Rs 7,000 crore via domestic bonds

📝 OnePlus, Qualcomm plan to start 5G trials in India

📝 PE investments see 36% rise in Jan: Grant Thornton

📝 Norway's $1 trillion fund loaded up on stocks at end of 2018

📝 Cabinet likely to clear Rs 10,000 crore FAME II scheme

📝 NITI Aayog partners with Adobe to boost digital literacy, creativity skills

📝 Crude steel output in India at 9.18 million tonne in January : Report

*Business Standard*

📝 Finance Ministry asks direct tax code panel to revise existing I-T slabs

📝 Sebi to tighten takeover regulations for companies under IBC process

📝 States expect subdued revenue receipts in FY20; cut expenditure growth

📝 Currency in circulation may touch around Rs 20.9 trillion by FY19

📝 Telecom dept directs BSNL, MTNL to explain 'viability' of revival plans

📝 $7 bn fund infusion into PSBs not enough to support lending growth: Fitch

📝 Rs 20,000 cr GST evasion detected in April-Feb FY19, half recovered

📝 Centre to conduct 5G auction this year, panel working on pricing

📝 Banks oppose RCom's proposal to use tax refunds to pay Ericsson dues

*Financial Express*

📝 DAC grants approval for purchase of defence equipment worth Rs 2,700 cr

📝 No Bond! FPIs pull out $650 million from debt market so far in February

📝 Cement firms’ margins to improve on tapering costs, rising demand: Ind-Ra

📝 India to evaluate Chinese telecom equipment threat after US, Australia boycott Huawei

📝 Relevance of private markets rises, global AUM touches new high of $5.8 trillion: Report

📝 Spotify India gets Rs 48 crore from parent, set to compete with JioSaavn, Gaana.com

📝 E-commerce policy: Vendors’ body wants changes in anti-counterfeiting measures

*Mint*

📝 Kotak India's affordable housing fund to invest in Shriram Properties project

📝 UK approved to rejoin $1.7 trillion WTO procurement deal

📝 Income tax dept, NIA step up drive against terror funding

📝 SBI reports fraud worth ₹7,951.29 crore in Apr-Dec

📝 Punjab National Bank to cut lending rates by 10 bps on 1 March

📝 Sebi plans amending norms pertaining to corporate debt rejig

📝 LSE Group invests in Nivaura, startup behind the first cryptocurrency bond

📝 IOC wins city gas licences for 10 areas, HPCL 9.

RISK Management Very important MCqs

RISK Management Very important MCqs

01.ALM not responsible for: achieving budgets and targets (it helps in managing liquidity risk and interest rate risk).
02.At present banks are required to maintain capital adequacy ratio of 9% and Tier II capital should not be more than Tier I. It
means that banks are required to bring Tier I capital of at least 4.5% of the risk weighted assets. With effect from which date,
banks will be required to bring Tier I capital of 6% of the risk weighted assets?: 31't March 2010.
03.Documents not stamped properly is what kind of risk?: Legal Risk
04.For calculation of capital adequacy ratio, the risk weight for Commercial Real Estate for commercial bldg is : 100%
05.For capital adequacy purposes, risk weight for personal loans is : 125%
06.Fraud – what type of risk : Operational risk
07.General Insurance works on principle of: Spreading the Risk.
08. If an Outsourcing agency does not serve properly – which type of Risk is faced by the bank?: Reputation Risk and Operational
Risk
09. Investment in perpetual bonds is risky because: the interest is not payable if the CRAR falls below the stipulated target.
10.Legal risk is part of: operational risk.
11.Loss due to inadequacy or failure of system, process, people or due to external events is called: Operational risk
12.Risk weight for claim on Banks which complies to Min CRAR requirement : Scheduled Banks 20%
13.Risk weight for exposure to Scheduled Commercial Bank that maintains CRAR as per RBI requirement: 20%
14.Sub-prime is an risk. (Operational and Credit Risk)
15.The capital adequacy ratio is computed by the following formula: Capital/Risk Weighted Assets
16.Tier 2 - general provisioning & loss reserves only up to 1.25% of total risk weighted assets.
17.Tier I should be at least 6% of Risk weighted assets and should be achieved before by all scheduled commercial banks:

31.3.2010.
18.What are the components of credit risk?: Transaction risk or default risk and portfolio risk
19.When does liquidity risk arises?: Liquidity risk arises when maturing liabilities are more than maturing assets-
20.While doing Risk Rating, an asset is downgraded from A+ rating to A rating. What type of risk is involved: Credit Risk

some important abbreviations::

some important abbrevetions::

SWIFT: Society for worldwide Interbank Financial Telecommunication
SFMS: Structured Financial Messaging System
OLTAS: Online Tax Accounting System
CBS: Centralized/ core Banking Solution
PIN: Personal Identification Number
LAN: Local Area Network (used in the same building)
MAN: Metropolitan Area Network (used in the same city)
WAN: Wide Area Network (used in different locations)
IDRBT: Institute for development & Research in Banking Technology
Banknet: Payment System Network established by RBI
NICNFT: National Informatics Centre Network (currency chest operation)
WWW: World Wide Web
HTTP: Hyper Text Transfer Protocol
URL: Uniform Resource Locator
VSAT: Very Small Aperture terminal
Firewall: Software programme that restricts unauthorized access to data and acts as a security to private network

JAIIB PPB exam recollected 04 November 2018

JAIIB today's exam recollected 04 November 2018 ..

1.Two questions on Basel 2 and 3 ... each 2 marks question

2.NEFT and RTGS details for 4questions

3.Can you accept it with as NEFT or RTGS or vice versa

4. Sections are asked from NI Act  around 6 questions
5.PMDJY - 3Qtns
6.A has dream cheque at Delhi, and sent for clearing to bank Y where he has his AC, it was returned due to insufficient funds 
Which Court A can approach
A resident location
Delhi
Y Bank
7.Mandate holder features in two questions
8.Can Two minors open a Joint AC?
9.LC issued for 10 lakh, at the time payment it was found in the bills mentioned as 10.90.. can it be acceptable or not   Answer Accept
10.Use of DRS system to CBS
11.Matching of 
Lien
Set off
Pledge
Appropriation 
with 

Rights of Physical property FD created before maturity of loan
12.Where as ASBA can be used
13.One qtsn Selective Credit Control.
Asked to find out which is not a feature of SCC
14.No of Cycle of a Product
15.Stages of Product   ..4
16.What's your reason while accept/not to accept to provide an acknowledgement for Loan request
17.Electronics chq is defined under sec...
18.Sec 6 ni act
19.Which asset cannot assign for loan?
Book Dept
LIC
Share certificate
Copy rights**
20.Minimum credit rating of company for issue CP should be _ 
A1
AAA
Aa1
A3**
21.Asset of mutual fund are held by 
Custodian**
Registar
Trusstee
Amc
22.Corporate security dealt with  __market    money market
23.Codes which are withdrawn by RBI?

24.Question related to bcsbi was there..
25.Which one is stamp duty
Lc
Bill purchase
Bank guarantee**
Bill discounting

26.A partner acts as agent of firm is called______
27.In call money what% can commercial bank take an advance?125
28.Electronic cheque is defined in section 6

29.Under LRS resident can remit______
30.. Servuction means what, 
31. Pull strategy pull means demand, supply, price, quality. 
32. Who introduces NEFT. 
34. in joint account nominee is their A expired in that what you will do. 
35. Kotler  marketing defination.
36.Forfiating,factoring
37.BG

                                            

                                             

                                            

60 JAIIB LEGAL 18.11.2018 recollected questions ...

60 JAIIB LEGAL 18.11.2018  recollected questions ...


1.Banking ombudsman-max.amount,no.of members in Pvt LTD and public LTD company,
2.paid up capital for Pvt and public LTD company,
3.sale of goods act relate to??
4.DRT related 5 to 6 questions
5.Sec 131 of NI ACT
6.Many questions regarding drt  , negotiable instruments
7.More than 15- 20 case studies
8.RTI act rejected by
9.Amalagation of two banks
10. Chairman of sebi who appoint
11.LIABILITY of drawee cover under NI act
12.MONEY laundering related
13.Two parties of BOE
14.Appelate Tribunal chairmander
15. Order NISI garnishee order
16.Appeal against district court
17.1st appeal in appellate and fee
18.Around 10-20 questions are from only partnership and companies
19.IBC 2016 can be filed by
20.RBI inspection to Banking companies
21.FEMA ED IS ESTABLISHED BY
22 FEMA act objectives
23 .What is public key
24.features of Lokadalat
25. Award means by Lokadalat
26.rejected by district forum than where you can appeal
27.DRAT can be headed by
28.DRT to DRAT .....%of amount to deposit
29.RTI has to dispose information
30. More than 3 no.of parties involved in which.
a.LC
b.guarantee
C.BOE
D.indeminity

31.Banking license can be cancelled by??
32.One 2 mark question regarding mode of charges
1.car loan
2.finished goods
3.FDR
4.HOME LOAN
5.LIC POLICY

33.Consumer means???
34.Conract of goods what are going to transmit??

35.Recovery officer duties??
36.DRAT can transfer the cases to any other DRT within his juridiction

37.2 marks question...firm is registered at  mumbai and factory at chennai avail loan at kolakata based bank against factory ..then where will be mortagage takes palce??

38..Bank given loan against Hypothecation of work in process goods ....then Charge witb ROC will be filed when???

39.Counter claim filed under sub section8   has the same effect a

40.IBC 2016 can be filed by

41.Foreign banks question ...place of business mumbai with amount and profit % will be transferred to rbi???  Macmillan page 19

42.Assessee and assessment question based on place of residence
43.National council forum is headed by whom???

44.Minister of consumer affairs

45.Agreement related question ....contract = agreement + enforceability

46.National council forum is headed by whom???

47.Continuing guarantee in the case of death of guarantee??

48.Recovery officer duties??

49.DRAT can transfer the cases to any other DRT within his juridiction

50.Regarding nature of pledge

51.Parties related to LC


52.BR act 17(1)
53.NBFC

54.NI act

55.Sarfasei act

56.law of limitations

57.Types of securities


58.130 transfer property act

59.RTI act

60.lokadalat

61.Possesion of immobile property


Recollected questions posted by our members

Limitations period of foreclosure - 30 Years
Section 35 of RBI act - Initial assets and liabilities
Section 35 of Banking Regulation Act, 1949 - Inspection
Minor Partner liability in firm - cannot be held personally liable
Payee bank protection in case of forged Instrument - Sections 10, 85 and 128 of NI Act
Elder Male member called as in HUF - Karta
Non negotiation crossing Obligation to payee bank
Limitation period in case of Default of loan in EM
Bank Negotiation stamp of cheque, presented to other bank
5-6 questions frm DRT/DRAT
Bank Guarantee
Questions from NI Act
Limitation Act
Charges, Mortgage
Partnership Act
FEMA
Consumer Protection Act
Banking Ombudsman
Majority of the paper from Chapter A
Questions on minor admitted benefits
LC types i.e red clause and green clause
Public Ltd and Pvt company differs
No of members in pvt ltd
Case studies on Bank Guarantee
LC case study
Winding up decisions

• Loan documents signed by in case of loan to HUF

JAIIB AFB Recollected on nov 2018

JAIIB AFB Recollected on nov 2018

1.More Theory based questions came.Approximatly 20% numerical
2.As 6
3.Spot rate
4.Numricals on sum digit depreciation
5.Computised accounting 2 question
6.Ration analysis : debt equity ration was given current ration was given total asset was given, find curren asset.
7.1 question on exchange rate.
8.3-4 question theory on rectification and error
9.4-5 questions related to daily banking activity

10.Calculation of net profit
11.Bills discounting
12. Brs 2 questions
13.3 qns NPV
14. 4 Depreciation- Sum of year method
15. Bond yield
16. YTM calculate
17.Questions were also on KYC norms
18.Like who can open current account
Illiterate
Minor
Blind
19.Non registered society
20.Documents required for opening acc of an trust
21.Opening stock 1000
Purchse 2000
Sales 1600
Expenses 500
Closing stock???
22.Error of commission
Error of ommission
Compensating error
23.
Sold goods to Mr.M ...trail balance entries will be?? Which account is debit

24.
Features of cost based concept accounting ??

25.
Process of Posting of entries in ledger is called??

26
Which of the one is not belongs to reporting stage??
27.Sweat equity
28.1 $ = in rupees and 1$ = in euros find 1 euro= in rupees
29.
Generally cash book and passbook is differs in following situations??


30.Regarding non voting shares one questions
31.Adjustment entry effect whch account
32. profit nd loss
33.Trading related
34.Current account can be opened by ......
35. Discount factor for 1 year for 10% rate.... 0.909
36. Which method doesn't take time value of money in consideration... NPC/IRR/PAYBACK METHOD - PAYBACK METHOD
37. If market value of the bond is equal to the face value..then intrest rate is?? YTM/Simple/Compound
38. 3 question on sum of digit method of depreciation... In one question dep. For 3rd year was asked and time period was 10 years.. In another que. Depreciation after 3rd year was asked
39. Which of the following is ont at the recording stage? Money measurement/Cost concept/Business entity/Going concern*
40. One question from reporting / recording stage
41. Overcasting in receipt side of cash book reconciled by what?
42DE ratio 4:1, Current ratio 2:1, Owned funds : 3 lakhs, Total assets : 34 lakhs, Find current assets?
43. Machine value 30000, Salvage value 2500, Life 10 years, What is the 3rd yr depreciation value?
44. Machinery value - 12,00,000, Salvage Value - 1,00,000, Useful Life in Years - 10 Years. Use sum of the years' digits method of depreciation to find the depreciation for 3rd year.
45. Generally cash book and passbook is differs in following situations??
46. Regarding non voting shares one questions
47. 1 $ = in rupees and 1$ = in euros. Find the value of 1 euro = in rupees
48. Housing loan priority sector 1 question
49 Process of Posting of entries in ledger is called?
50 Adjusting entries will effect which of the accounts?? p&l / balance sheet / trading account / None of the above
51 Opening stock 1000, Purchase 2000, Sales 1600, Expenses 500, Closing stock?

Current Affairs on 27.02.2019

oday's Headlines from www:

Economic Times

📝 AAA-rated cos in India among the lowest in emerging markets: Crisil

📝 CG Power promoter in talks to sell stake: Reports

📝 thyssenkrupp inks pact with Babcock & Wilcox for renewable energy tech

📝 RBI to soon put into circulation Rs 100 bank notes in new series

📝 ONGC to sell 9.5 million tonnes of liquefied natural gas a year from Mozambique project

📝 Jio's run-rate may take it to No 1 in 2019: Bernstein

📝 Kotak Mahindra Bank raises foreign investment limit

📝 After 2 year lull, consumer goods companies gear up for flurry of launches

Business Standard

📝 ArcelorMittal plans Rs 18,697-crore capex for debt-laden Essar Steel

📝 PSA Group plans to launch Citroën brand in India by end of 2021

📝 Domestic consumer market may touch Rs 335 trillion in next 10 years: Report

📝 True North to acquire 51% stake in Max Bupa Health Insurance for Rs 511 cr

📝 Fiscal deficit breaches full-year target by 21.5% in 10 months

📝 India defers higher duties on 29 key imports from US for 6th time

📝 Bank of Baroda to sell NPAs worth Rs 6,000 cr, including RCom debt

📝 JM Financial files application at NCLT against Hotel Leela Venture

📝 RBI removes Allahabad Bank, Corp Bank, Dhanlaxmi from PCA framework

Financial Express

📝 Tata Steel to raise around Rs 5,000 crore via NCDs on private placement

📝 BPCL starts Kochi refinery expansion to build petrochemical complex

📝 RBI proposes 50% variable pay for private bank chiefs

📝 Profitability remains elusive for Flipkart as losses pile up 5X

📝 MakeMyTrip gets Rs 73.9-crore tax refund

📝 US headed towards another recession this year, say economists

📝 Tirupur exporters want IGST relief for 2 more years

Mint

📝 Dollar-rupee trading in London trebles, raising policy concerns

📝 Everbright Bank in talks to back $20 billion Saudi-China investment fund

📝 Private equity deals hit new high of $1.4 trillion in 2018: McKinsey report

📝 Mukesh Ambani 10th richest person in the world with net worth of $54 billion

📝 ED attaches jeweller Nirav Modi’s assets worth ₹147.72 crore

📝 Airtel won’t buy 5G spectrum at current prices: Sunil Mittal

📝 Deloitte sees share of organised retail at 22% by 2021.

UCP 600 Caiib BFM

UCP 600


Why Documentary Credits
• Exchange of goods and services across national boundaries brings greater problems
to both buyer and seller than does domestic business.
• Diversity of customs, standards, currencies, local regulations, languages and legal
systems
• The Documentary Letter of Credit is widely used to reduce the financial risks of
trade.
• Importer wants to ensure performance while exporter wants to secure payment.
• Few of the rules are subject to any national or international law. Provisions of
International Chamber of Commerce & Industry (ICC) important, but not foolproof.
• Generally adopted set of rules for credits known as the Uniform Customs and
Practice for Letters of Credit (UCP) issued by ICC, publication no.600, 2007 (earlier
version no. 500, 1993).
Introduction
• This revision of the Uniform Customs and Practice for Documentary Credits
(commonly called "UCP") is the sixth revision of the rules since they were first
promulgated in 1933.
• The objective of UCP, since attained, was to create a set of contractual rules that
would establish uniformity in that practice, so that practitioners would not have to
cope with a plethora of often conflicting national regulations. The universal
acceptance of the UCP by practitioners in countries with widely divergent economic
and judicial systems is a testament to the rules' success.
• It is important to recall that the UCP represent the work of a private international
organization, not a governmental body.

Important Articles
Article 1 Application of UCP
• The Uniform Customs and Practice for Documentary Credits, 2007 Revision, ICC
Publication no. 600 ("UCP") are rules that apply to any documentary credit ("credit")
(including, to the extent to which they may be applicable, any standby letter of
credit) when the text of the credit expressly indicates that it is subject to these rules.
They are binding on all parties thereto unless expressly modified or excluded by the
credit.
Article 2: Definitions
• Advising bank means the bank that advises the credit at the request of the issuing
bank.
• Applicant means the party on whose request the credit is issued.
• Beneficiary means the party in whose favour a credit is issued.

Confirmation means a definite undertaking of the confirming bank, in addition to
that of the issuing bank, to honour or negotiate a complying presentation.
Confirming bank means the bank that adds its confirmation to a credit upon the
issuing bank's authorization or request.
• Issuing bank means the bank that issues a credit at the request of an applicant or on
its own behalf.
• Negotiation means the purchase by the nominated bank of drafts (drawn on a bank
other than the nominated bank) and/or documents under a complying presentation,
by advancing or agreeing to advance funds to the beneficiary on or before the
banking day on which reimbursement is due to the nominated bank.
• Nominated bank means the bank with which the credit is available or any bank in
the case of a credit available with any bank.
Article 3: Interpretations
• The expression "on or about" or similar will be interpreted as a stipulation that an
event is to occur during a period of five calendar days before until five calendar days
after the specified date, both start and end dates included.
• The words "to", "until", "till", "from" and "between" when used to determine a
period of shipment include the date or dates mentioned, and the words "before"
and "after" exclude the date mentioned.
• The terms "first half" and "second half" of a month shall be construed respectively as
the 1st to the 15th and the 16th to the last day of the month, all dates inclusive.
• The terms "beginning", "middle" and "end" of a month shall be construed
respectively as the 1st to the 10th, the 11th to the 20th and the 21st to the last day
of the month, all dates inclusive.
Article 4: Credits vs Contracts
• A credit by its nature is a separate transaction from the sale or other contract on
which it may be based. Banks are in no way concerned with or bound by such
contract, even if any reference whatsoever to it is included in the credit.
Article 5: Documents v. Goods, Services or Performance
• Banks deal with documents and not with goods, services or performance to which
the documents may relate.
Article 6 Availability, Expiry Date and Place for Presentation
• A credit must state the bank with which it is available or whether it is available with
any bank. A credit available with a nominated bank is also available with the issuing
bank.
• A credit must state whether it is available by sight payment, deferred payment,
acceptance or negotiation.
• A credit must state an expiry date for presentation.
• The place of the bank with which the credit is available is the place for presentation.


Article 9 Advising of Credits and Amendments
• A credit and any amendment may be advised to a beneficiary through an advising
bank. An advising bank that is not a confirming bank advises the credit and any
amendment without any undertaking to honour or negotiate.
• By advising the credit or amendment, the advising bank signifies that it has satisfied
itself as to the apparent authenticity of the credit or amendment and that the advice
accurately reflects the terms and conditions of the credit or amendment received.
• A bank utilizing the services of an advising bank or second advising bank to advise a
credit must use the same bank to advise any amendment thereto.
Article 10 Amendments
• The terms and conditions of the original credit (or a credit incorporating previously
accepted amendments) will remain in force for the beneficiary until the beneficiary
communicates its acceptance of the amendment to the bank that advised such
amendment. The beneficiary should give notification of acceptance or rejection of an
amendment. If the beneficiary fails to give such notification, a presentation that
complies with the credit and to any not yet accepted amendment will be deemed to
be notification of acceptance by the beneficiary of such amendment. As of that
moment the credit will be amended.
• Partial acceptance of an amendment is not allowed and will be deemed to be
notification of rejection of the amendment.
Article 11 Teletransmitted and Pre-Advised Credits and Amendments
• An authenticated teletransmission of a credit or amendment will be deemed to be
the operative credit or amendment, and any subsequent mail confirmation shall be
disregarded.
• If a teletransmission states "full details to follow" (or words of similar effect), or
states that the mail confirmation is to be the operative credit or amendment, then
the teletransmission will not be deemed to be the operative credit or amendment.
The issuing bank must then issue the operative credit or amendment without delay
in terms not inconsistent with the teletransmission.
Article 13 Bank-to-Bank Reimbursement Arrangements
• An issuing bank must provide a reimbursing bank with a reimbursement
authorization that conforms with the availability stated in the credit. The
reimbursement authorization should not be subject to an expiry date.
• An issuing bank will be responsible for any loss of interest, together with any
expenses incurred, if reimbursement is not provided on first demand by a
reimbursing bank in accordance with the terms and conditions of the credit.
• A reimbursing bank's charges are for the account of the issuing bank.
Article 14 Standard for Examination of Documents
• A nominated bank acting on its nomination, a confirming bank, if any, and the issuing
bank must examine a presentation to determine, on the basis of the documents
alone, whether or not the documents appear on their face to constitute a complying
presentation.

• A nominated bank acting on its nomination, a confirming bank, if any, and the issuing
bank shall each have a maximum of five banking days following the day of
presentation to determine if a presentation is complying. This period is not curtailed
or otherwise affected by the occurrence on or after the date of presentation of any
expiry date or last day for presentation.
• A presentation must be made by or on behalf of the beneficiary not later than 21
calendar days after the date of shipment as described in these rules, but in any event
not later than the expiry date of the credit.
Article 16 Discrepant Documents, Waiver and Notice
• When a nominated bank acting on its nomination, a confirming bank, if any, or the
issuing bank determines that a presentation does not comply, it may refuse to
honour or negotiate.
• When an issuing bank determines that a presentation does not comply, it may in its
sole judgement approach the applicant for a waiver of the discrepancies.
• When a nominated bank acting on its nomination, a confirming bank, if any, or the
issuing bank decides to refuse to honour or negotiate, it must give a single notice to
that effect to the presenter.
• The notice must state:
• i. that the bank is refusing to honour or negotiate; and
• ii. each discrepancy in respect of which the bank refuses to honour or negotiate; and
• iii. a) that the bank is holding the documents pending further instructions from the
presenter; or
• b) that the issuing bank is holding the documents until it receives a waiver from the
applicant and agrees to accept it, or receives further instructions from the presenter
prior to agreeing to accept a waiver; or
• c) that the bank is returning the documents; or
• d) that the bank is acting in accordance with instructions previously received from
the presenter.
• The notice required in sub-article 16 (c) must be given by telecommunication or, if
that is not possible, by other expeditious means no later than the close of the fifth
banking day following the day of presentation.
Article 20 Bill of Lading
• A bill of lading, however named, must appear to:
• i. indicate the name of the carrier and be signed by:
• the carrier or a named agent for or on behalf of the carrier, or
• the master or a named agent for or on behalf of the master.
• ii. indicate that the goods have been shipped on board a named vessel at the port of
loading stated in the credit by:
• pre-printed wording, or
• an on board notation indicating the date on which the goods have been shipped on
board.
• be the sole original bill of lading or, if issued in more than one original, be the full set
as indicated on the bill of lading.


Other Transport Documents
• Non-Negotiable Sea Waybill (Article 21)
• Charter Party Bill of Lading (Article 22)
• Multimodal Transport Document (Article 19)
• Air Transport Document (Article 23)
• Road, Rail or Inland Waterway Transport Documents (Article 24)
• Courier Receipts, Post Receipt or Certificate of Posting (Article 25)
Article 26 "On Deck”
• A transport document must not indicate that the goods are or will be loaded on
deck. A clause on a transport document stating that the goods may be loaded on
deck is acceptable.
Article 27 Clean Transport Document
• A bank will only accept a clean transport document. A clean transport document is
one bearing no clause or notation expressly declaring a defective condition of the
goods or their packaging. The word "clean" need not appear on a transport
document, even if a credit has a requirement for that transport document to be
"clean on board".
Article 28 Insurance Document and Coverage
• Cover notes will not be accepted.
• The date of the insurance document must be no later than the date of shipment,
unless it appears from the insurance document that the cover is effective from a
date not later than the date of shipment.
• The insurance document must indicate the amount of insurance coverage and be in
the same currency as the credit.
• If there is no indication in the credit of the insurance coverage required, the amount
of insurance coverage must be at least 110% of the CIF or CIP value of the goods.
Article 29 Extension of Expiry Date or Last Day for Presentation
• If the expiry date of a credit or the last day for presentation falls on a day when the
bank to which presentation is to be made is closed for reasons other than those
referred to in article 36, the expiry date or the last day for presentation, as the case
may be, will be extended to the first following banking day.
Article 30 Tolerance in Credit Amount, Quantity and Unit Prices
• The words "about" or "approximately" used in connection with the amount of the
credit or the quantity or the unit price stated in the credit are to be construed as
allowing a tolerance not to exceed 10% more or 10% less than the amount, the
quantity or the unit price to which they refer.
• A tolerance not to exceed 5% more or 5% less than the quantity of the goods is
allowed, provided the credit does not state the quantity in terms of a stipulated
number of packing units or individual items and the total amount of the drawings
does not exceed the amount of the credit.


Article 31 Partial Drawings or Shipments
• Partial drawings or shipments are allowed.
Article 34 Disclaimer on Effectiveness of Documents
• A bank assumes no liability or responsibility for the form, sufficiency, accuracy,
genuineness, falsification or legal effect of any document, or for the general or
particular conditions stipulated in a document or superimposed thereon; nor does it
assume any liability or responsibility for the description, quantity, weight, quality,
condition, packing, delivery, value or existence of the goods, services or other
performance represented by any document, or for the good faith or acts or
omissions, solvency, performance or standing of the consignor, the carrier, the
forwarder, the consignee or the insurer of the goods or any other person.
Article 35 Disclaimer on Transmission and Translation
• A bank assumes no liability or responsibility for the consequences arising out of
delay, loss in transit, mutilation or other errors arising in the transmission of any
messages or delivery of letters or documents, when such messages, letters or
documents are transmitted or sent according to the requirements stated in the
credit, or when the bank may have taken the initiative in the choice of the delivery
service in the absence of such instructions in the credit.
• If a nominated bank determines that a presentation is complying and forwards the
documents to the issuing bank or confirming bank, whether or not the nominated
bank has honoured or negotiated, an issuing bank or confirming bank must honour
or negotiate, or reimburse that nominated bank, even when the documents have
been lost in transit between the nominated bank and the issuing bank or confirming
bank, or between the confirming bank and the issuing bank.
• A bank assumes no liability or responsibility for errors in translation or interpretation
of technical terms and may transmit credit terms without translating them.
Article 36 Force Majeure
• A bank assumes no liability or responsibility for the consequences arising out of the
interruption of its business by Acts of God, riots, civil commotions, insurrections,
wars, acts of terrorism, or by any strikes or lockouts or any other causes beyond its
control.
• A bank will not, upon resumption of its business, honour or negotiate under a credit
that expired during such interruption of its business.
Article 37 Disclaimer for Acts of an Instructed Party
• A bank utilizing the services of another bank for the purpose of giving effect to the
instructions of the applicant does so for the account and at the risk of the applicant.
• An issuing bank or advising bank assumes no liability or responsibility should the
instructions it transmits to another bank not be carried out, even if it has taken the
initiative in the choice of that other bank.
Article 38 Transferable Credits
• A bank is under no obligation to transfer a credit except to the extent and in the
manner expressly consented to by that bank.

• Transferable credit means a credit that specifically states it is "transferable". A
transferable credit may be made available in whole or in part to another beneficiary
("second beneficiary") at the request of the beneficiary ("first beneficiary").
• Transferring bank means a nominated bank that transfers the credit or, in a credit
available with any bank, a bank that is specifically authorized by the issuing bank to
transfer and that transfers the credit. An issuing bank may be a transferring bank.
Transferred credit means a credit that has been made available by the transferring
bank to a second beneficiary.
• A credit may be transferred in part to more than one second beneficiary provided
partial drawings or shipments are allowed.
• A transferred credit cannot be transferred at the request of a second beneficiary to
any subsequent beneficiary. The first beneficiary is not considered to be a
subsequent beneficiary.
• Any request for transfer must indicate if and under what conditions amendments
may be advised to the second beneficiary. The transferred credit must clearly
indicate those conditions.
• The transferred credit must accurately reflect the terms and conditions of the credit,
including confirmation, if any, with the exception of:
- the amount of the credit,
- any unit price stated therein,
- the expiry date,
- the period for presentation, or
- the latest shipment date or given period for shipment,
any or all of which may be reduced or curtailed.
• The first beneficiary has the right to substitute its own invoice and draft, if any, for
those of a second beneficiary for an amount not in excess of that stipulated in the
credit, and upon such substitution the first beneficiary can draw under the credit for
the difference, if any, between its invoice and the invoice of a second beneficiary.

Summary of Major Issues in LC Transactions
Check List for Issuing/Accepting L/C
• Quality of Issuing Bank
• Method of Payment: Sight or Deferred Basis
• Transport Documents
• Other Documents
• Documents: Banks deal in documents not in goods, services or performance
• Should not refer to underlying contract
• Timing: UCP norm is max. 21 days after shipment date for presentation of
documents
Responsibilities and Obligations of Banks
• Irrevocable unless otherwise mentioned
• Issuing Bank: Prime obligation
• Advising Bank: Only obligation to authenticate the credit and passing it on promptly
to beneficiary

• Confirming Bank: takes over payment responsibilities of the issuing bank as far as the
beneficiary is concerned
• Reimbursing Bank: Responsibility of Issuing Bank to provide proper reimbursement
instructions
• Applicability of Force Majeure clause limiting banks’ liability on account of Acts of
God, riots, etc.
• Banks have five banking days to examine documents after receipt of documents
• Banks will examine documents with reasonable care
• Documents should be consistent with each other and complete
• Documents should conform with the terms of the credit
• Documents should comply with the provisions of UCP
Common Defects in Documentation
Commonly found discrepancies between the letter of credit and supporting documents
include:
• Letter of Credit has expired prior to presentation of draft.
• Bill of Lading evidences delivery prior to or after the date range stated in the credit.
• Stale dated documents.
• Changes included in the invoice not authorized in the credit.
• Inconsistent description of goods.
• Insurance document errors.
• Invoice amount not equal to draft amount.
• Ports of loading and destination not as specified in the credit.
• Description of merchandise is not as stated in credit.
• A document required by the credit is not presented.
• Documents are inconsistent as to general information such as volume, quality, etc.
• Names of documents not exact as described in the credit. Beneficiary information
must be exact.
• Invoice or statement is not signed as stipulated in the letter of credit.
Options for Banks dealing in Discrepant Documents
• Ask beneficiaries to make corrections
• Accept minor discrepancies and pay under reserve
• Obtain indemnity from seller
• Telex/fax details of discrepancies to the issuing bank and request permission to pay
• Send the documents on collection
Marine or Ocean Bill of Lading
• They are documents of title. Should be signed by ship’s master or his named agent
• If stated that goods are on board, then dated
• Load port and disport should be named
• `On Deck’ transport document not allowed
• Clean Transport Document
• Quasi-negotiable: transferable by endorsement and physical delivery, but no
recourse
• Transhipment allowed unless prohibited in L/C

Other Transport Documents
• Some multi-modal transport operators (MTOs) also issue negotiable documents for
transport operations where the goods are carried by several different modes of
transport.
• Today goods often travel faster than the related documents. Rail, road and air
transport documents are issued only in non-negotiable form with the goods
consigned direct to a named consignee. Usually this will be the buyer unless the
goods are consigned to a bank
Non-Transport Documents
• Insurance Documents (Article 28): Same currency as the Credit, Minimum amount to
be CIF or CIP plus 10%,
• Commercial Invoices (Article 18)
• Consular Invoice
• Certificate of Origin
• Weight List
• Packing List
• Inspection or Survey Certificate
• Test Certificates

Recollected cyber crime and fruad management on 16.02.2019

RECOLLECTED QUESTION OF PAPER ON 16 Feb 2019

2

cyber crime definition

3

john doe order

4

cyber stalking

5

cyber warfare

6

phishing

7

zeus

8

.non repudiation

9

.trapdoor

10

 Ethical hacking

11

2D/matrix code

12

.RFID

13

symmetic encryption

14

 Encryption and decryption

15

c-Dac

16

payment and settlements system 2007

17

acquiring bank

18

 brute force attack

19

man in the middle attack

20

session hijacking

21

CBI specialised structures

22

.electonic signature

23

US Initiative -cyber security information sharing act

24

.it act andit amendment act.

25

.Pki

26

.authenticity

27

SWIFT-details

28

IT adjudicator-detail

29

Budapost convention details

30

piggyback

31

threats

32

motives of cybercrime

33

APT agents-page 14

34

cybercrime not defined

35

threat landscape

36

fastflux

37

cyber squatting-infring trademark

38

stuxnet attack nuclear programe in iran

39

life imprisonment c terrorism

40

vishing

41

data/information

42

pillars IS -2 mark

43

authorisation/authentication

44

diff b/w digital and elec signature

45

tailgating

46

masquerading

47

data diddling

48

MiTMZombies

49

hacking def

50

hacking tools-steganograpy/profiling/key logger/key stroke logger

51

rootkit

52

white hat/black hat

53

zero day vulnerability

54

script kiddie

55

mens rea

56

application process control-software

57

RFID tags

58

detection control-principles

59

mitigation controls

60

telephonic instructions case study

61

digital footprints

62

cdr long form

63

BPSS

64

IPS- Intrution prevention sys

65

ISO 27001-ISMS

66

GPS

67

APP-def details

68

Rupay -network managed by NFS

69

shimmer

70

RBI stated banks that terminals installed at merchants should certified PCI-DSS PA-DSS page 147

71

ITAA 2008 exclusions

72

acts amemded y ITA 2000

73

anwar vs Basheer case page-162

74

jurisdiction page 162

75

NCRB

76

incidence of tax

77

OED-guiding principles for taxation in e com--page 174

78

major criminals in cyberspace -youth page 187

79

CERT in national nodal agency

80

G Gopalkrishna working group-2mark

81

IDRBT manages INFINET page 202

82

NTRO

83

national security policy by DeITY

84

CBI undee ministry of personal

85

RAW under PMO

86

Interpol details

87

BOSS devloped by C-DAC

RIGHT TO INFORMATION ACT - 2005

RIGHT TO INFORMATION ACT - 2005
- Information can be obtained by Indian Citizen only.
- Information is available with public information officer, appointed by each organization for that purpose.
- Time for providing information: 30 days.
- Fine for delay in providing information : per day Rs.250 and total maximum fine Rs.25,000
- Record preservation time: 5 to 8 years as fixed by Central Govt.
Government of India enacted 'Right to Information Act 2005’which replaced Freedom of Information Act, 2002. The Act will have an overriding effect, notwithstanding Official Secrets Act, 1923 The Act aims at setting out the practical regime of right to information for citizen to secure access to information under the control of Public Authorities, in order to promote transparency and accountability in the working of every public authority. The Bank is a public authority within the meaning of the Act and will have the obligations as listed in the Act, as the Bank has been constituted under an act of Parliament.
'Information' means any material in any form. The right to information includes an access to the information, right to inspect the work, documents, records, taking notes, extracts or certified copies of documents / records and certified samples of the materials and obtaining information which is stored in electronic form.
Any citizen can request for information by making an application in writing or through electronic means together with the prescribed fees of Rs.10/-. It is not required to give any reason as to why he is seeking the information. The information should be furnished or rejection of the request should be informed within 30 days.
An officer is designated the Assistant Central Public Information Officers (ACPIOs) will receive request for information from the public. 'Central Assistant Public Information Officer' (CAPIO) is empowered to provide information. One senior CPIO at the apex level is designated as Appellate Authority.
Appeals can also be made before the State or Central Information Commissions. The decision given by the State/Central Commission is binding.

CONSUMER PROTECTION ACT 1986 & RULES 1987

CONSUMER PROTECTION ACT 1986 & RULES 1987
An Act to provide for better protection of the interests of consumers.
❖ W.e.f. 15th April, 1987. Amend. 15th March ,2003 ( not applicable in J&K state )
❖ Limitation 2 years from cause of action.
❖ Time limit – Admission of complaint 21 days. Decision 3 months without analysis and 5 months with analysis.
❖ Relief: Removal of defect, replacement, refund, award of compensation.
❖ Frivolous complaint : imprisonment 1 month to 3 years & Fine Rs.2000 to Rs.10,000
❖ Appeal: Against Distt. Forum to State Commission deposit of 50 % of amount or Rs. 25,000, whichever less. Against State Commission to National Commission Rs.35, 000 and against National Commission to Supreme Court Rs.50, 000. Period for appeal 30 Days.
❖ Provision for the establishment of consumer councils and other authorities for the settlement of consumers’ disputes.
❖ District Forum: To entertain complaints where the value of the goods or services and the compensation, if any, does not exceed Rs.20 lakh.
❖ State Commission: To entertain complaints where the value of goods or services and the compensation, if any, exceeds Rs.20 lakh and does not exceed Rs.1 crore.
❖ National Commission: To entertain complaints where the value of goods or services and the compensation, if any, exceeds Rs.1 crore.
The Act applies to all goods and services unless specifically exempted. It enshrines the rights of the consumers.
The Act provides for simple, speedy and inexpensive redressal of consumer grievances. It envisages three-tier quasi-judicial machinery at the National, State and District levels: National Consumer Disputes Redressal Commission, State Level. Consumer Dispute Redressal Commissions and District Level Consumer Disputes Redressal Forums
A complaint can be filed by
a) A consumer
b) Any voluntary registered consumer organization
c) State, Central Governments or Union Territory Administration.
The Relief available is:
a) Removal of the defects from the goods
b) Replacement of the goods
c) Refund of the price paid; or
d) Award of compensation for the loss or injury suffered.

What is Vote on Account?

What is Vote on Account?
A vote-on account is basically a statement ,where the government presents an estimate of a sum required to meet the expenditure that it incurs during the first three to four months of an election financial year until a new government is in place, to keep the machinery running.
Difference between Vote on Account and Interim Budget?
Vote-on-account deals only with the expenditure side of the government's budget, an interim Budget is a complete set of accounts, including both expenditure and receipts.

OMBUDSMAN

OMBUDSMAN:
Scheme announced by RBI u/s 35 A of BR Act.
✓ Scheme effective from June 1995 and amended in June’02 & 01.01.2006.
✓ Covers scheduled commercial banks, RRBs and co-operative banks.
✓ Deals with: Deficiency in banking services, delayed collection of cheques, non-issue of drafts, interest rate disputes, failure to honour LC/guarantee commitments, delay in disposal of loan application
✓ It promotes settlement through conciliation
• Applicable all SCBs including RRB/Co-operative banks (Including J&K state)
• RBI appoint its own CGM/GM
• In case of loan related complaints only in case of non-observance of RBI directives, delay in sanction or disbursement, time schedules etc.
• If one month lapsed after lodging complaint with bank and no reply received or reply not satisfactory. Complaint can be made within one year of the above period. Cases pending in court or already decided by court/ ombudsman, not eligible.
Procedure :
➢ On receipt of complaint, ombudsman will refer the matter to bank to promote settlement by agreement. If not settled within 1 month, ombudsman shall announce award.
Award :
➢ Can direct bank for specific performance in addition to compensation up-to Rs.10 lac against indemnity. Binding on bank if customer gives acceptance within 30 days from receipt. Compliance by bank within 1 month of receipt of acceptance from customer.
Appeal :
➢ Against award or against ground of rejection of complaint, customer can file appeal within 30 days on receiving the award / rejection of complaint, to Dy. Governor RBI. Appeal by banks against award can be made within 30 days of date of receipt of customer acceptance, with permission of CMD or ED or CEO

CREDIT INFORMATION BUREAU (INDIA) LTD (CIBIL)

CREDIT INFORMATION BUREAU (INDIA) LTD (CIBIL)
CIBIL was originally set up by SBI and HDFC with shareholding of 40% each and the other two companies i.e. DUN and Bradstreet Information services India Pvt Ltd and Trans Union International INC. having 10% shareholding each. The envisaged role of CIBIL is to A) Gather credit related information regarding individuals and Corporate /Commercial Credit users, B) Maintain a database of this information and sell this information in reports to a closed user group for a price. At present SBI and HDFC reduced their holding to 16.25% each, rest taken up by ICICI Bank, PNB, Bank of India, Union Bank of India, Bank of Baroda etc. CIBIL has a database of 20 million records from 12 members. The company has a paid up capital of 25 crores.

IMPORTANT

SME RATING AGENCY OF INDIA LIMITED (SMERA)
✓ Joint initiative by SIDBI, Dun & Bradstreet Information Services India Private Limited (D&B), CIBIL and several leading banks in the country.
✓ Takes into account the financial condition and several qualitative factors that have Bearing on creditworthiness of the SME.
✓ Better rating from SMERA could lead to favorable credit terms such as lower Collateral requirements and interest rates and simplified lending.
✓ SMERA has signed a memorandum of understanding with State Bank of India for Rating the SME clients of the bank.
CLEARING CORPORATION OF INDIA LTD. (CCIL)
o CCIL was incorporated in 2001.
o Country’s first clearing house for the Government Securities, Forex and other related Market segments.
o Operates Collateralized Borrowing and Lending Obligation (CBLO) a repo variant With several unique features for NDS Members.
MULTI COMMODITY EXCHANGE OF INDIA (MCX, NCDEX & NMCEIL)
➢ MCX and independent and de-mutulised multi commodity exchange for facilitating online Trading, clearing and settlement operations for commodity futures markets across the country.
➢ NCDEX is a professionally managed online multi commodity exchange.
➢ National Multi Commodity Exchange of India Limited (NMCEIL) is the first demutualized, Electronic Multi-Commodity Exchange in India
Forward Markets Commission (FMC) headquartered at Mumbai is the regulatory authority for the commodity exchanges, which is overseen by the Ministry of Consumer Affairs and Public Distribution, Govt. of India. It is a statutory body set up in 1953 under the Forward Contracts (Regulation) Act, 1952. The exchanges that have been set up under overall control of Forward Market Commission (FMC) Of Government of India are Multi Commodity Exchange of India Limited (MCX), National Commodity & Derivatives Exchange Limited (NCDEX) and National Multi-Commodity Exchange of India Limited (NMCEIL)