Bharat Interface for Money (BHIM)

Bharat Interface for Money (BHIM)
The Bharat Interface for Money (BHIM) was rolled out by Prime Minister Narendra Modi
on 30th December 2016, in an initiative to enable fast, secure and reliable cashless
payments through mobile phones.
BHIM is inter-operable with other Unified Payment Interface (UPI) applications and bank
accounts, and has been developed by the National Payments Corporation of India
(NPCI).
The Android app is already available on the Google Play Store. As it is Aadhaarenabled,
the app puts an end to the fuss around other e-wallets. Moreover, an iOS
version will be launched soon. One must get their bank accounts registered along with a
UPI Pin for their account.
On the BHIM app, it would be or . This
user id would be your primary address, which can be used to send or request money
through other ids linked to it.
The BHIM App supports about 35 banks.
Bharat Interface for Money (BHIM) is an app that lets you make simple, easy and quick payment
transactions. BHIM is a digital payments solution app based on the Unified Payments Interface (UPI) from
the National Payments Corporation of India (NPCI), the umbrella organisation for all retail payments
systems in India. You can easily make direct bank to bank payments instantly and collect money using just

Current Affairs on June 25th 2018

Today's Headlines

*Economic Times*

📝 JPMorgan to sell $203-million stake in Saudi Arabia bank

📝 Lupin to launch nearly 30 products in US market in FY18

📝 First-time entrepreneurs propel Indian franchise business; industry pegged at $150 bn in 5 years

📝 IFCI to raise Rs 3,000 crore from debt to fund business growth

Caiib ABM Re exam recollected

Recollected qus abm 24 june exam

1. DIFFERENCE BETWEEN IS AND LM CURVE

IS IS RELATED TO FISCAL POLICY OR LM CURVE IS TO MONETARY POLICY

Bond can issue for maximum period ?

Basic Principles of Information Security

Basic Principles of Information Security: For over twenty years, information security has held confidentiality, integrity and availability (known as the CIA triad) to be the core principles. There is continuous debate about extending this classic trio. Other principles such as Authenticity, Non-repudiation and accountability are also now becoming key considerations for practical security installations. Confidentiality: Confidentiality is the term used to prevent the disclosure of information to unauthorized individuals or systems. For example, a credit card transaction on the Internet requires the credit card number to be transmitted from the buyer to the merchant and from the merchant to a transaction processing network. The system attempts to enforce confidentiality by encrypting the card number during transmission, by limiting the places where it might appear (in databases, log files, backups, printed receipts, and so on), and by restricting access to the places where it is stored. If an unauthorized party obtains the card number in any way, a breach of confidentiality has occurred. Breaches of confidentiality take many forms like Hacking, Phishing, Vishing, Email-spoofing, SMS spoofing, and sending malicious code through email or Bot Networks, as discussed earlier.

Block chain Technology

Block Chain Technology : ICICI Bank is the first bank in the country and among the first few globally to exchange and
authenticate remittance transaction messages as well as original international trade documents related to purchase order,
invoice, shipping & insurance, among others, electronically on block chain in real time.
The usage of block chain technology simplifies the process and makes it almost instant—to only a few minutes. Typically, this
process takes a few days. The block chain application co-created by ICICI Bank replicates the paper-intensive international trade
finance process as an electronic de centralised ledger, that gives all the participating entities including banks the ability to access
a single source of information.

Some important abbrevetions

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

KYC AML: PRINCIPAL OFFICER DUTIES::

KYC AML:

PRINCIPAL OFFICER DUTIES::

Overall monitoring of the implementation of the Bank‘s KYC/AML/CFT policy

Monitoring and reporting of transactions, and sharing of information, as required under the law

Interaction with MLROs in Business Groups/SBUs for ensuring full compliance with the Policy

Timely submission of Cash Transaction Reports (CTRs), Suspicious Transaction Reports (STRs),Counterfeit Currency Reports (CCRs) and Non Profit Organisation Transaction Report (NTRs) to FIU-IND

Maintaining liaison with the law enforcement agencies, banks and other institutions which are involved in the fight against Money Laundering and Combating Financing of Terrorism

Ensuring submission of periodical reports to the Top Management/Board

kyc aml mcqs

KYC AML Mcq:

1.The amount beyond which cash transactions (Receipts & Payments) are to be monitored by the Commercial Banks as stipulated by the RBI in

its guidelines is -

A.Rs.5 lacs & above B. Rs.8 lacs & above C. Rs.10 lacs & above D. No such limit

2. Submission of details of PAN (Permanent Account Number) is compulsory for Fixed Deposits, Remittances, such as, DDs / TTs/ Rupee TCs,

etc., if the amount exceeds –

A. Rs.10,000/- B. Rs.25,000/- C. Rs.50,000/- D. No such limit

3. Branches should not open deposit/advances accounts of banned/ terrorist organisations as circulated by -

A.IRDA B. SEBI C. AMFI D. FIU

4. FCRA means - Foreign Contribution Regulation Acta

kyc aml recollected

KYC AML:: 


All 2 marks from case studies.


(Placement


Layering


Integration)

KYC AML MCQs

KYC :::

1. To counter money laundering in India, Government of India has come up with:

(A) Banking Regulation Act (B) Reserve Bank of India Act

(C) Prevention of Corruption Act (D) Prevention of Money Laundering Act

2. The objective of KYC/AML/CFT guidelines is

(A) to prevent banks from being used, intentionally or unintentionally, by criminal

elements for money laundering or terrorist financing activities.

(B) KYC procedures also enable banks to know/understand their customers and their

financial dealings better which in turn help them manage their risks prudently

(C) Either (A) or (B) (D) Both (A) and (B)

3. For the purpose of KYC policy, a 'Customer' is defined as :

(A) A person or entity that maintains an account and/or has a business relationship

with the bank

(B) one on whose behalf the account is maintained (i.e. the beneficial owner).

(C) beneficiaries of transactions conducted by professional intermediaries, such as Stock

Brokers, Chartered Accountants, Solicitors etc. as permitted under the law, the any

person or entity connected with a financial transaction which can pose significant

reputational or other risks to the bank, say, a wire transfer or issue of a high value

demand draft as a single transaction.

(D) All of the above

KYC AML SHORT NOTES

KYC AML :: (Short notes 1)

1. The objective of KYC/AML/CFT guidelines is to prevent banks/FIs from being used,

intentionally or unintentionally, by criminal elements for money laundering or terrorist

financing activities.

2. The PMLA came into effect from 1st July 2005. Necessary Notifications / Rules under the

said Act were published in the Gazette of India on 1st July, 2005 by the Department of

Revenue, Ministry of Finance, Government of India. The PMLA has been further amended

vide notification dated March 6, 2009 and inter alia provides that violating the prohibitions

on manipulative and deceptive devices, insider trading and substantial acquisition of

securities or control as prescribed in Section 12 A read with Section 24 of the Securities and

Exchange Board of India Act, 1992 (SEBI Act) will now be treated as a scheduled offence

under schedule B of the PMLA.

3. KYC procedures also enable banks/FIs to know/understand their customers and their

financial dealings better and manage their risks prudently.

KYC AML

KYC/AML:::

1. Cash receipt or cash payment of more than Rs 10 lakh are reported to FIU on CTR statement which
should be sent to FIU within _____ from the close of the month: 15 days.

2. Suspicious Transaction report is sent to FIU within: 7 days from confirmation of suspicion.

3. In case of transactions carried out by a non-account based customer, that is a walk-in customer, where
the amount of transaction is equal to or exceeds rupees whether conducted as a single transaction or several
transactions that appear to be connected, the customer's identity and address should be verified: fifty
thousand

4. As per KYC norms, banks are required to periodical update data. In respect of High risk customers,
full KYC exercise will be required to be done at least every: two years

KYC AML

Kyc aml::

56. Dormant / In-operative account means -
A. No debits / credits in account for certain period
B. A dead account not operated for over 10 years
C. No debit entries, but certain credit entries for certain period
D. A fixed asset account
57. The objective of verifying the employee life-styles by the employer is -
A. to know the source of income
B. to ascertain whether the employee is having any contacts with illegal organisations
C. to ascertain whether the employee is assisting organisations banned by statutory authorities
D. All of these
58. Maximum retention period of the bank records in case of suspicious transactions is -
A. 5 years B. 7 years C. 10 years D. 15 years
60. Role of the front line employees of a bank in respect of KYC guidelines is to -
A. Identify customers as per the existing instructions
B. Serve with Smile while opening the customer accounts
C. Assist the customer in filling-up the account opening forms
D. Provide efficient customer service

MSME

Development Commissioner (DC-MSME) Schemes :::

Related scheme: 1. Credit Guarantee
Description Ministry of Micro, Small and Medium Enterprises, GoI and Small Industries
Development Bank of India (SIDBI), established a Trust named Credit Guarantee Fund Trust
for Micro and Small Enterprises (CGTMSE) to implement Credit Guarantee Fund Scheme for
Micro and Small Enterprises. The corpus of CGTMSE is being contributed by GoI and SIDBI.
Nature of assistance Collateral free loans up to a limit ofRs.50 lakh - for individual MSEs
Who can apply Both existing and new enterprises are eligible to be covered under the scheme.
How to apply Candidates meeting the eligibility criteria may approach banks/financial
institutions, which are eligible under the scheme, or scheduled commercial banks and select
Regional Rural Banks.

SMERA

MSME::

SMALL AND MEDIUM ENTERPRISES RATING AGENCY (SMERA)

SME Rating Agency of India Ltd (SMERA) is a third party rating agency exclusively set up
for micro, smal l, and medium enterprises in India for ratings on credit worthiness.
SMERA is promoted by SIDBI and Dun & Bradstreet along with various government,
public and private sector banks. It provides ratings which enable MSME units to raise

bank loans at competitive rates of interest. SMERA's ratings are an independent thirdparty
assessment of the overall status of the MSMEs as performing entities. The ratings
comprise a composite appraisal indicator and a size indicator. Its ratings enhance the
market standing of the MSMEs among their trading partners and customers. In addition,
the agency factors in industry dynamics in its ratings through a system of comparison of
strengths and weaknesses of the MSME with other companies in the same line of
business. It is also risk profiling the clusters through special studies and these would fill
the information gap between the lender and the sector. Banks offer concessions in pricing
(0.25%-0.50%) for credit to MSMEs rated by SMERA.

PMEGP

MSME::

Prime Minister’s Employment Generation Programme (PMEGP) is a credit linked subsidy programme administered by the Ministry of Micro, Small and Medium Enterprises, Government of India. Khadi & Village Industries Commission (KVIC), is the nodal agency at national level for implementation of the scheme. At state level the scheme is implemented through KVIC, KVIB and District Industries center.

Eligibility
Objective
To generate employment opportunities in rural as well as urban areas through setting up of self employment ventures.
To provide continuous and sustainable employment to a large segment of traditional and prospective artisans and unemployed youth, so as to help arrest migration of rural youth to urban areas.
Scope

HOUSING FOR ALL BY 2022

 MSME::

HOUSING FOR ALL BY 2022

Urbanization is one of the important realities of recent decades in India. Its urban system consists of 7933 cities and towns of different population sizes, and a population of 377.16 million (Census 2011) which is the second largest in the world. India entered into a different demographic trajectory with the net increment to urban population exceeding the net increment to rural population. The United Nations (2014) estimates that much of the population increase in India between 2015 and 2030 will take place in urban areas during which it will add 164 million people to its urban base. The scale of the projected urban population increase is extraordinary, offering both an opportunity as well as a challenge for it to mobilize its resources and capacity to manage the transition.

MSME

MSME :: ( Most imp Exam point of view)

1. A Small Manufacturing Enterprise unit is considered as Sick Industrial Unit: when account remains sub
standard for more than six months or there is erosion in the net worth due to accumulated cash losses to
the extent of 50% or more of its net worth during the previous accounting year and the unit has been in
commercial production for at least two years
2. A small scale unit (manufacturing) can be treated as micro unit if the original investment in plant and
machinery does not exceed : Rs.25 lac
3. A unit in service enterprise is considered as medium if the investment in equipment is: more than Rs 2
crore but up to Rs 5 crore.
4. A Unit will be called as Small Service Enterprise if investment in equipments is up to: Rs 2 crore.
5. Amount of maximum loan given to micro and small enterprises that is covered under-CGFTMSEscheme
: Rs.200 lac
6. As per Micro, small and medium enterprise development Act 2006, a small manufacturing enterprise is
one in which original investment in plant and machinery is: more than Rs 25 lakh and up to Rs 5 crore.
7. As per RBI guidelines, banks are required to provide__% of advance to small enterprises to units in
which original investment in plant & machinery does not exceed Rs 10 lac in the case of manufacturing
units and does not exceed Rs 4 lac in equipment in the case of service enterprises: 40%
8. As per RBI guidelines, Loans to Agro and food processing Units are eligible to be classified under
Agriculture Ancillary Activity under Agril. Finance Priority Per borrower Rs. 100.00 crores.
9. Bank limit for working capital based on turn over method: 20% of the projected sales turnover
10. Banks are required to make 40% of advance to Micro and Small enterprises to manufacturing units
with investment up to Rs 10 lakhs and/or service enterprises with investment in equipment up to: No
criteria (earlier Rs 4 lakh) and now Micro has to reach 7.00% by March 2016 & 7.5% by March
2017 of ANBC/ceobe which ever is higher.
11. Banks will not obtain collateral security in respect of loans to micro and small enterprises which are
covered by Credit Guarantee Scheme for Micro and Small enterprises?: Rs 1 crore
12. CGTMSE fee: For North East & women; Loan up to Rs 5 lakh – 0.75% p.a.; Loan more than
Rs 5 lakh – 0.85% p.a.
13. Composite loan limit for Small Manufacturing enterprises: Rs.1.00 crore
14. For being defined as Medium enterprise, the original investment in plant & machinery should be: More
than Rs 5 crore and up to Rs 10 crore.
15. For being eligible to be classified as small (service) enterprise, the original investment in equipment
should not exceed: Rs 2 crore.
16. Full form of CGTSME: Credit Guarantee Fund Trust for Micro & Small Enterprises.
17. If a small enterprise in manufacturing has a good track record, collateral security can be waived up
to: 25.00 lacs
18. If an MSME units holds a margin of Rs.20 lac and its projected sales are Rs.400 lac, its working
capital limit will be : Rs.80 lacs
19. In case of advance granted to Micro and small enterprises, banks will not obtain collateral security up
to: Rs 10 lakh
20. In case of advance to Micro and Small manufacturing enterprises, working capital limit by a bank as
per turnover method is calculated as: 20% of projected annual turnover.
21. In case of loan guaranteed under CGTMSE, what is the extent of cover for loan upto 50 lac granted to
a women?: 80% of amount in default.
22. In case of loan to micro and small enterprises guaranteed by CGTMSE, no collateral security is
required for loans up to: Rs 100 lac.
23. Khadi Village Industry part of MSE; irrespective of investment in P&M.
24. Maximum Guarantee coverage for loans guaranteed by CGTMSE if loan up to Rs 5 lakh: 85% of the
amount in default with a maximum of Rs 425000.
25. Micro, Small and Medium Enterprises is under which Ministry: Ministry of Micro Small & Medium
Enterprises.
26. SMERA stands for: Small & Medium Enterprises Rating Agency.
27. The definition of Micro and Small enterprise in the manufacturing Sector is based on investment in :
Plant and Machinery.
28. Under CGFT scheme for MSE, for loans up to Rs 50 lac, 80% coverage is not available for: SC/ST

29. What is the maximum amount of loan covered guarantee scheme of CGTMSE for loans made to micro
and small enterprise: Rs.00.00 Lac

30. What is the rate of guarantee fees charged under CGSMSE for loan of more than Rs 5 lac to a
women?: 0.85% p.a. of limit sanctioned.
31. Advantages of Cluster based finance to MSMEs: Risk mitigation.

MSME

 MSME::

What are Debt Recovery Tribunals (DRTs)?

Debt Recovery Tribunals were established to facilitate the debt recovery involving banks and other financial institutions with their customers. DRTs were set up after the passing of Recovery of Debts due to Banks and Financial Institutions Act (RDBBFI), 1993. Appeals against orders passed by DRTs lie before Debts Recovery Appellate Tribunal (DRAT). DRTs can take cases from banks for disputed loans above Rs 10 Lakhs. At present, there are 33 DRTs and 5 DRATs functioning at various parts of the country. In 2014, the government has created six new DRTs to speed up loan related dispute settlement.

Compared to the ordinary court procedures, DRTs were able to handle large number of cases with low delay during the initial phases. Though the DRTs have made impact on recovery front, several issues related to their performance in the background of rising volume of NPAs have appeared in later period. Inadequate infrastructure coupled with insufficient number of DRTs has made them incompetent to handle the rising volume of disputes.

MSME recollected questions

MSME recollected questions
1. Micro, small & medium sector
2. Priority sector classification (esp foreign banks less than 20 branches etc)
3. One sum on calculation of NWC
4. CLUSTER development features
5. TIFAC full form, CODISSIA located at?
6. Mahila schemes implemented by SIDBI
7. Which are NOT included under plant & machinery
8. HUF, LLP questions on minor admissibility
9. Common seal compulsory for companies/LLP
10. GRAY sick area
11. Ots implemented by? - individual banks
12. Highest investment by overseas investors is under which sectors
13. Study report Of DIC recommendations
14. Federation of msme for West Bengal state? ITCOT located in which state? MSME council located? Msme as per constitution is state/central/concurrent subject?