CAIIB single link for recollected questions

CAIIB ABM TODAY EXAM 55 QUESTIONS RECOLLECTED by Srinivas Kante 1.Hicks -Hansen synthesis 2.Basic difference between IS and LM curve 3.Increase in money supply Lowe interest rate and raising inflation 4.NDP @factor cost 5.Demand –pull inflation means 6.Erosion as per the role 7.Climate Survey 8.Case study one related to Budget 9.Central limit theorem 10.sampling methods . 11. job erosion 12 curreneaccountdefficit 13 Gross deficit etc. case 14..standard deviations mean related 15 .Case 3 Xyz jewellery shop Related But the level oh complexity is very high..n .. 16 fiscal policy ,monetary policy 17.demand supply curve etc... 18.Correlation and regression numerical 19.NNP @ factor cost 20working capital 21. bank guarantee 22.Performance Appraisal 23. Halo effect Tendency.. 24.NNP at market price 25.In correct characteristics in Business cycle 26 Notional income also known as.. 27.Least squre method used in.. 28.Fctoring of services the factor 29.Lender to sensitising test and scenerion analysis..Type of loans 30. Debt to equity of enter prises raatio is.05 its... 31.Bank Gaurantee to commoidity brokarage (margin %).. 32.find P(x bar >/85) ? 33Std error of the mean is???? 34 Estimate of the population proportion is.. 35 Commericial paper issued multiples of.. 36.Commericial paper issued maximum period 37.Find P(88| 39.HRM 40.monetary policy 41.Annuity due prblems 42. Future Value problem 43.Estimation 44.Bond price 45.Revenue dediciat problem 46.Job evealution Job specfication case study 47. Turn over methodeapplied on leass than 5 cr 48. Factor of Supply schedule 49.Lional econmic statement. 50. GDP calculation 51. GNP at amrket price calculation 52. Sampling Methodes 53.Hallo effect 54 Cov(X,Y)=150 mean X=20 mean Y=10 standard deviation x=25 then equation of regression line is 55. 3 questions from HRM 5 marks each

Today CAIIB BFM Recollected questions by Srinivas Kante June 10 , 2018

1.Most of the questions from foreign exchange    numericals

2. case study on DGAP, Leverage ratio

3. case study on LC

4. Risk weight on Housing loan

5.Diffence between basis risk, gap risk, and yield curve risk

6. Letter of credit related

7.Capital charge for PR questions

8.Problems on NII

9.YIELD On T BILL

10 .Tier 1 CRAR

11.Call risk

12.NRE ,NRO, FCNR account related

13 Beta factor and basic indicator approach

14.The main object of the LRM loan review mechanism

15.The notional transit period permitted ..

16. One case study on asset liability management

17. Exchange fluctuation risk of ecgc

18. Rupee account... nostro,vostro,loro,mirror are in option

19. case study on TT buying, selling

20. RAROC,Who decide maximum limit of risk

21.Corporate debt instrument characteristics

22.Basel 3 bank apply – for computing capital requirement from existing risk..

23.residual risk also known as..

24.Elements of common equity Tier 1 cap

25.In repo transaction in G-sec , the settlement carried in  first leg is ------------ basis

26. BASEL 3 going concern capital is

27.Liqidity risk is a type of time risk??

28.GOI not issue T bill with ------------maturity days

29.Notice money market period is…

30Duration is the elasticity of the bond

31.In CP Buy bank offer may not be made before ----days

32.Features of hedging , Int, Arbitrage ,trading , Investment

33.Nostro Accounts are – accounts

34.Emp option risk about pre closure

35. Feature of CCB  BASEL 3

36.FX clear is a forex dealing sym developed by

37.Features of CRR

38.Calculation of LCR under level1  Asset

39.Cross rate

40.Charactristics of foreign exchange market

41.Temporary Asset--- revaltion not present

42.Calculation of capital for General market risk

43.In stock of HQLA for the purpose of cap liquidity coverage ratio…

44. BCBS introduced new approach called..

45.Instrument having lower demand and trading…

46 In india short position allowd..

47.Features of LCR

48.Rapid Growth period bank can make…

49. RAROC,Who decide maximum limit of risk

50. case study on TT buying

51. what does CRR impact

52. no.of key  priniciples in Supervising review process

53. Features of CCB in BASEL 3
54..5 marks case study from CALL and PUT option

55.Rupee account Vostro or Mirror?
56. Calculate price for a 270day CP having face value 100/- when yield is 7.57%?
a. 94.6970,a. 94.6770, c. 94.6570, d. 94.6370
57. Calculate yield on a 182 day T bill issued at 97.30/-?
a. 7.57,b. 7.75, c. 5.57, d. 5.75%
58.no.of key priniciples in Supervising review process
59. Features of CCB in BASEL 3
60. 1.yield in tBill
61.rwa
62. Case study o. Nii and nim
63. Case study on rwa and capital charge
64.case study on leverage ratio
65. Case study on lc , advising bank confirming bank etc
66 case study on foreign exchange
67. yield to maturity 02 questions asked
68.call money Nd term money
69. Approach basic indicator approach , advance approach
70. M duration
71. piller 3 ,spr
72. 5 marks case study from CALL and PUT option
73. NII - 5marks
74.CRAR - 5marks
75.FEDAI - 5marks
76.Exchnge rates- 5marks
(USD to INR)
77.Exchange rates - 5marks
(USD - Jap yen - GBpound)
78. Lc - 5 marks
79 DGAP nd Levarage ratio - 5marks
80.5 questions on USD JPY against foreign person returning to India  

CAIIB Retail Recollected 2018 June ::

Recalled questions 

Bbps

Case study on hl income tax claim

Fv n pv

Fsi

NFS details

Credit card

Free charge

Emi Calculation, Rule 72, Questions on CIBIL,  SLM and WDV

 housing loan cs education loan cs bbps cs ekyc depriciation cs question on time value of money and also more and more question on theory part

 Case study on

BBPS

HL income tax

CKYC

Depriciation

Case study on

Bcsbi 5 que

 Imps,UPI, *99#,mmid

[Credit card 5 que

 Sarfasi,, lokadalak, drt 5 que

Car loan new oold car 5; questions

Housing loan tax benefits 5 que

 Slm , wdv depreciation 3 que

Fund transfer mobile banking maximum    per transaction and max per month per beneficiary

[Sub prime loan

[Bank charges under charge against future receivable        cersai form 1 or 2 or not applicable

 Mortgage act

[ RTGS and neft

 Method of valuation of land and buildings which is to be attached as security for bank

 Product development stages

Rule 72 compounded annually  doubles in 7 yrs and 6 months option 9 .6,10, 9.3,9

 Demat account can be opened in banks or DPS or brokers
If a bank issue card to customer and 10 lakh insurance cover what type of card bank issue rupay, visa, master, mastro
 If credit card a person purchases for 12000 at 37.20 annually.               Per month interest.  Per day ,, if he pays within time limit what is the interest charged

How can a bank protect themselves if he is relieving information about the customer
Ombudsman settlement

Kyc aml

• Dispute between banks and reconstruction company securitization

[Back loading emi
 If a person wants to invest in a 10 yrs  pention plan  plan name?? Pmjsy, pmvvy, Jay,jsy
[Machinery value 1200 lakhs salvage value 300. End of 6 yrs under wdv method 15%
When salvage value become zero

Dep under straight line method
Cumulative depreciation value of 3rd 4th year under wdv


CAIIB HRM Recollected questions

Organic structure organization definition

Definitions for norming and performing (stages of group development) 

Questions on six leadership styles (5 questions asked) 

Definition of process diagnosis(in bpr implementation) 

Identify best practices in change management

Key factors for successful implementatition of change within organization

Chief insecurity of most staff is change itself

Identify steps to successful change propsed by John p kotter

Responsibility charting is foundation for strong delegation

Forecasting activities in human resource planning include

What are two types of knowledge

In RAKID R stands for

Commonly used knowledge management tools are online discussion forums,  online conferencing,  communities of practice

Employees and managers can be classified in 4 categories.  Identify-activist, reflector,  theorist and pragmatist

Characteristics of training new generation - it should be short,  entertaining,  allows freedom

Problem on ROI

Definition of ROI

Types of motivation

Definition of motivation

Lowest need in need hierarchy theory

Which of the following is not hygiene factor-recognition

Goal efficiency is effected by- proximity,  difficulty and specificity 

According to Steven reiss motivation theory,  how many basic desires?  16

Status is defined as need for social standing and importance

Human resource implications 

Augmented learning-learning where learners interact with e learning environment 

What are 3 domains of learning - cognitive.  Psychomotor and affective

Psychomotor involves what characteristics

Principles of learning -  readiness,  exercise. Intensity and recency

One question on perception

Adult learning feature identify the wrong one

Definition of functional comptency

External factor effecting demand forecasting

One of the following is not advantage of external recruitment 

Question on body language

What are the legislation on working conditions.  Identify wrong act

Registering trade union gives then legal status

One of the following is not a social security act

BFM Recollected questions::

Daily votality is 5% 2.5 Find modified duration - Ans is 2.38

STRIPS (Separate Trading of Registered Interest and Principal Securities) is a ...... zero-coupon securities

Which is not a derivative product ? - Repo (Swap, Option, Forward, Repo)

ECB limit - USD 500 mn up to minimum period of 5 years and USD 20 mn up to minimum period of 3 years without prior approval of RBI

ECB is denominated in which currencies.....USD, Euro or JPY

Consessive rate of interest on postshipment rupee export credit to gold card status holder can be extended maximum - 365 days

One importer want import one machine from China.He has to open lc. The exporter wants advance payment. What type lc - red clause

Value at risk is a measure of? Gap risks in foreign exchange operations

Which office not under treasury ? Options given r Mid office, back office, front office, legal office*, 

Under standard assets, provision for loss, RSV should be?? Ans - less than 10%

If interest of principle is not serviced for 90 days, what is the position of account? ans- outof order

Basel 3 teir 1 components. (Plz remember that Revaluation reserve is also now under Teir 1)

If treasury assets r withdrawn before maturity, what type of risk is it? ,

A 91 Day T bill of 93.21 wl have yield of? 

If 91 days treasury is 88., then its implied yield is?

ICAAP is related to? 

ADR related question

Double forward is called what ?

Related to Nro account

Nro account can be opened as sb,CA,FD type

Derivatives also lot of questions

Advising bank roles ... Like what he can do what can't

INCOTERM

IRS

Swap

Risk weightage

Lot of RWAs questions

Which is not included in calculation of NDTL/DTL for CRR/SLR

Component of tier 1

Rwa as per Basel III for housing loan based on LTV

Many questions sellect correct or incorrect about NRO NRE FCNR ECB EEFC CCIL

Estimated occurence of probability

Questions on currency derivatives, forwards, swaps

Forex market characteristics

One question related to embedded option risk

As per basic indicator approach calculation of capital charge 15% of average gross income over there years given but one of the year is having negative one that we have to ignore.

8.83GS2023price100.49 with yield 8.75 .....just it is given and based on this statement he asked for 5marks

Crystallization period for export

One question on American and europian option

Capital charge on operational risk based on standardized approach and basic indicator approach

Questions on ADR AND GDR

Questions on option and forward contact, future

Loan To Value Ratio

Risk Weight %

Swap Defination , ADR and INCOTERMS

RWA calculation for operational risk under Standardized approach

DGAP

Conceptual question on FCNR, RFC, NRO, NRE

Operational risk calculation all approaches

Modified duration

Tier 1 n tier 2 numerical

LC based case studies for 5 marks

Basic inducater appoach market risk 5 number

Modified duration of equity5 ques

Calculations of capital adequacy ratio quite a few questions

10 questions at from various risks associated with Treasury operations

Interest rate swap 5 questions

Bill buying 5 questions

EXCHANGE RATE

AAA A BB Rating Chart Questions for Risk Weighted Calculations

Yield Calculation

W RSA,RSL NUMERICAL

RATED BOND NUMERICAL

Yeild of bond numerical

BASIC INDICATOR APPROACH NUMERICAL

BPV

Forex t.bill 

Leverage 

Forward contact

CRAR

Operational risk

Treasury theoritical

60question theory easy

No ques from volatility and bpv

Call risk problems

packing credit problems

Rsl. Rsa.. Md problems

Leveage ratio related case study

BASEL III Tier 1 Tier 2 capital Minimum equity ratio related 

BFM Book page no 415 ICCAP related question

BFM Book page no 443 stock approach related 05 question

BFM Book page no 477 - RSL/RSA/DGAP/Modified Duration Gaps

BFM Book page no 20 - Export Bill 5 marks

BFM Book page no 295 - Estimated level of Operational Risk 

Case study numerical-TEIR 1 TEIR 2 CAPITAL CONVERSION BUFFER QUESTION BASEL ON BASEL3

Case study on RFC account 5 marks

Case study on forex exchange buying commission etc 5marks

Case study on mkdified duration gap 5marks

VAR - 1 QUESTION 

TEIR 1 COMPONENT-2 QUESTION

CBLO- 1 QUESTIOn

Case Studies on

1. Cancellation of contract

2. NRE/NRO POA

3. RWA

4. MEAN & SD

5. SLR

6. YTM

7. SHORT LERM & LONG TERM GAP ASSET VS Liabilities

8. NII & NIM

9. Tier1, Tier2

10. Capital adequecy

11. Nostro Vostro Loro

12. Daily volatilty

13. Stop loss limit

14. Operational risk case study

15. Foreign exchange numericals

16. Swap numericals

17. Liquidity case study

18. Forward rate agreement 25 crore 3 month swap, three year three business line calculate yield and risk weightage

19. Calculate CET Basel 3

20. Calculate Aadditional tier 1

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

2 to 3 question duration

5 question export bill(cancellation of contract rate, margin amount,rebook rate,etc)

5 question on capital adequacy (balance sheet provided, compute equity capital, tier 1 capital, total rw, capital adequacy, buffer capital)

5 question on nostro,loro vostro

5 question on FRA 

5 question on net interest margin 

2-3 question on bonds

3-4 question on LC

some 2-3 sums on bpv

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

1. Rate qoute 1 ques

2.LC partial delivery UCPDC rule

3.FRA 6*9 dates of delivery and maturity

4.case study on rules and guidelines regarding NRE, NRO and FCNR accounts- amt of loan,POA,remittance,fund transfer limit etc

5.coupon swaps,forward contracts

6.securitization-SPV or Commercial bank allocation of assets 

7.Case study on NII,NIM,EER

8.Case study on Cash flows,deviation during years,SD/mean

9.ECGC insurance premium bear by?

10.CHIPS-USA

11.treasury risk management 4-5 ques

12.European put option

13.Authorises person categ 2

14. ques on BOP expansion 

15.bank margin calculation from rates 

16.Stop loss given- asked whether buy or sell at what rate to book profit or stop loss

17.monthly volatility given-calculate daily volatility 

18.modified duration calculation 

19.case study on Nostro Vostro and Loro and Mirror accounts

20.which is not an off balance sheet item of following 

21.crystallisation of sight bills 30 days

22.LC date expired due to bank closed due to hurricane UCPDC rule

23.standard ECGC policy cover-political risk

24.basel III - tier 2 capital req of total risk wtd assets, pillar 3 def

25.standardised approach and basic indicator approach and AMA all methods for operational risk calcualtion

24. volatility can also be measured by?

25.price volatility depends on yield volatility,BPV,Yield and price

26.VaR related 2 ques theoretical

27.derivatives hedge underlying risks

28.call risk

29.Maturity ladder or baskets case study

30.provision coverage ratio def

31.asset liability mismatch

32. Bond ytm,current yield 2-3 ques


CAIIB RETAIL BANKING PREVIOUS YEARS RECOLLECTED QUESTIONS BY Srinivas Kante

1. Sukanya samridhi yojana
2. Atal pension yojana
3. Basic saving ac - 1 qtn
4. Customer relationship management
5. Full form of CIA
6. one on IMPS
7. future value 2 qtn
8. BCSBI 7 qtn
9. Education loan 5 qtn
10. Who give subsidy on mudra loans?
11. One question on rule 72?
12. Ordinary annuity one question?
13. Product stage
14. Mobile banking limits?
15. Safety esteem self actualization
16. Reliability responsiveness
17. ROC pulling
18. Max limit for prepaid instruments, expiry of prepaid instruments
19. Mudra loan - It is 50000 to 10 lakhs
20. 80c rebate? - Rs. 1.5 lakhs
21. Withdrawal allowed in ATM's?
22. CERSAI is formed under which act?
23. Many questions from retail banking services
24. Reverse mortgage
25. Para banking
26. 80C limit
27. PM fosol bima yojona
28. CTR
29. CERSAI - which act
30. PMSBY - claim amout after losing one eye or one leg or hand
31. PMEGP - implemented through
32. POS
33. EWS_size
34. RML
35. CRM gap-iii between
36. Merchant banking means
37. Closed ended fund
38. APY
39. Advantage and disadvantage of retail banking
40. Limit of cash withdrawn from other bank ATM. Option 5000, 100000, 20000, 2500
How many neft settlements in a day?
Tax benefit in Home loan
Credit card cycle
NEFT/RTGS max n min limit
Basic diff.b/w rtgs n neft
Benefit of pvt. Banking
Wealth mgmt for corporates
Education loan repayment/defaults
EMI
Income tax
Rule 72
Essence of crm
Bharat bill paymnt systm
Priority of charge in mortgage
Brown label atm
Purpose of securitisation
Conditions for pension fund mgmt
Mutual fund conditions for bank
Approval for insurance
Propagate model
7Ps
ATM transactions in metro cities
SARFAESI
DRT
Internet banking
Mobile banking
Internet Banking- strategy adaptation
Depreciation by both methods
Capital gain
Annuity
FSI Calculations
Full form of CDO
Product meaning??
Airline company used which model..SBU..INTEGRATED MODEL???
RUPAY card is issued by NPCI
Case study related to Internet banking 5 questions
Case study related to credit card charges and other
Register mortgage date and deposit of title deed
Implementation model related
WRBR.. Full form??
Date of execution of documents.. 4 months
Augmented product...
Expected product...
Under NEFT, number of settlement on week days are..12
RTGS minimum and maximum amout...
Disadvantages of Retail banking...
Mobile banking maximum amout per txn and monthly threshold related 5 questions
IFSC CODE TOTAL ALPHA..and numerics
SFMS
Question on hni, super hni, ultra hni category..
Wether the cibil report can be given to customer after levying some charge or not..
Whether moratorium is given for second hand car...
Moslow theory : Case study on needs
RTGS : when processing
Education loan : case study about margin
On college fee hostel fee computer fee other expenses..
WDV : Case Study on Depreciation l
Credit Card : Case study on interest , risk , overdue amount....
Valuation of urban land ,agriculture land Method criteria etc.....
NEFT : 12 batches
Super affluent : 50-400 Lakhs
Case study on wdv method
Three questions on rent capitalization method
Case study on maslow hierarchy
Case study on tangibles..assurance..responsivess wale 5 factors
Emi calculation 2 questions
Theory was easy
Sbu 1 question
Horizontally organized model
credit card bill (case study 5 qus.)
Three questions on rent capitalization method
Neft batches - 12 batches
depreciation numerical...
case study on gift card...
Fullform of USP - Unique Selling Proposition
case study on education loan for abroad...
1. 2 Case studies on priority charge on mortgage
2. Problem on depreciation(By WDV)... eg. Wht will be the book value after 3 years?
3. Calculating future value
4. Diff between NEFT and RTGS
5. Questions on DSA
6. Case study on tax exemptions ( both interest and principal repayment)?
7. Prob on Depriciation by straight through method?
8. What does securitisation means?
9. Risk involved with DSA?
10. Questions on Potential product PROPAGATE?
11. EMI Calculation
12. Questions on vertical, horizantal model
13. How Many NEFT settlement on weekdays and saturday
14. How many characters in UTR?
15. Question on WRBR
16. Case study on education loan... all the fig are given ( eg. Hostel fee, tution fee,
other expenses and bank margin).... we have to calculate max permissible bank loan
17. One critical case study on credit card... credit card limt, free int period, int rate, over
limit penalty, due date and purchase date are given... We have to calculate int chraged
a. if the customer pays the amt due after 18 days from due date
b. If he pays half amt before due date then calculate int charged for remaining amt on a
particular date?
C. If the amt cro sses the limit then calculate the amt he has to pay
18. If we allow overdraft in CC a/c and the customer does not repay it, then can we
approach DRT ? There are four options and we have to choose the correct one
How many neft settlements in a day?
Tax benefit in Home loan
Credit card cycle
NEFT/RTGS max n min limit
Basic diff.b/w rtgs n neft
Benefit of pvt. Banking
Wealth mgmt for corporates
Education loan repayment/defaults
EMI
Income tax
Rule 72
Essence of crm
Bharat bill paymnt systm
Priority of charge in mortgage
Brown label atm
Purpose of securitisation
Conditions for pension fund mgmt
Mutual fund conditions for bank
Approval for insurance
Propagate model
7Ps
ATM transactions in metro cities
SARFAESI
DRT
Internet banking
Mobile banking

1. Case study on Prepaid instrument
2. Case study on Depreciation WDV and SLM methods
3. Case study on Bharat Bill Payment System
4. Case study on CERSAI
5. Case study on ekyc
6. Case study on car loan?
7. Case study on 'housing loan for all' by newly launched scheme
8. Case study on Vehicle loan
9. Case study on Credit card billing
10. Case study on Education loan problem
11. Case study on Future value of ordinary annuity
12. Case study on BCSBI - 10 questions (theory based)
13. Case study on Future value of bond/annuity
14. Case study on Maslow Needs
15. Case study on CRM
16. Case study on EMI
17. Case study on Capital gain
18. Case study on Calculate Present value
19. Case study on RML

Question on hni, super hni, ultra hni category..
Wether the cibil report can be given to customer after levying some charge or not..
Whether moratorium is given for second hand car...
Moslow theory : Case study on needs
RTGS : when processing
Education loan : case study about margin
On college fee hostel fee computer fee other expenses..
WDV : Case Study on Depreciation l
Credit Card : Case study on interest , risk , overdue amount....
Valuation of urban land ,agriculture land Method criteria etc.....
NEFT : 12 batches
Super affluent : 50-400 Lakhs
Case study on wdv method
Three questions on rent capitalization method
Case study on maslow hierarchy
Case study on tangibles..assurance..responsivess wale 5 factors
Emi calculation 2 questions
Theory was easy
Sbu 1 question
Horizontally organized model
credit card bill (case study 5 qus.)
Three questions on rent capitalization method
Neft batches - 12 batches
depreciation numerical...
case study on gift card...
Fullform of USP - Unique Selling Proposition
case study on education loan for abroad...
Numericals from book about
Encumberence ratio
Tax saving on HL
Case studies under IBA education loan
Calculation of PV FV
Case study on reliability, tangibility, assurance (customer expectations)
Masala bond
Prepaid instrument
MSME act
Full form of USP
Who heads DRAT?
Sum on WDV and SLM
................................. ......
Case study on UPI
AEPS
REVERSE MORTGAGE FOR SENIOR CITIZENS[RLEAC]
problems on straight line
WDV method
Educational loan on foreign study
5q on empathy,responsiveness,assurance
2q on augmented, core product
Reverse mortgage equity linked case study
FSI construction cost based
UPI based
80c/24(b) ICT act 1961 based
Priority sector in different sector with perc of ANBC
PROGATE full form
BBPS component
fraud in operation risk
straight line method
written down value method
encumbrance value
Home loan
Service quality based case study
PPI based case study
Total compound interest applicable
EMI
Present value and future value
Full form of MMID ?
UPI transaction max limit ?
Mobile banking per day and per month limit?
Housing loan % of priority sector?

Margin for RML (Reverse Mortgage Loan) with annuity ?

New Methods of Computing GDP

New Methods of Computing GDP


Central Statistical Organisation, introduced changes in computation of Gross Domestic Product in 2015.
Accordingly the GDP share as per 2011-12 series for Agriculture is 19%, for Industry 32% and for Services = 49%.
According to changed criteria, the headline growth is to be measured by GDP at constant market prices (to be
referred as GDP), which is an international practice. Earlier it was measured in terms of GDP at factor cost.
Sector-wise estimates of Gross Value Added (GVA) shall beat basic prices instead of factor cost.
GVA is an economic measurement used to calculate the productivity of an economy. The value added formula is
the difference between total economic output and intermediate consumption goods. The relationship between GVA
at factor cost, GVA at basic prices and GDP (at market prices) is given below:
GVA at basic prices = CE + OS / MI + CFC + production taxes less production subsidies.
GVA at factor cost = GVA at basic prices — production tax less production subsidies
Gross Domestic Product (GDP) = Summation GVA at basic prices — product tax — product subsidies
(CE = Employee compensation, OS = Operating surplus, MI = Mixed income, CFC = Consumption of fixed capital).
FORMULAE -
Ministry of Statistics & Program Implementation revised the base year from 2004-05 to 2011-12 for national
accounts and introduced the following formulae:
1.Gross value added (GVA) at basic prices = CE + OS/MI + CFC + Production taxes less Production subsidies
2.GVA at factor cost (earlier referred to as GDP at factor cost) = GVA at basic prices plus Production taxes less Production subsidies
3.GDP = GVA at basic prices + Product taxes - product subsidies
4.NDP/NNI = GDP/GNI - CFC
5.GNI = GDP + Net primary income from ROW
6. Primary Incomes = CE + Property and Entrepreneurial Income
7.NNDI =NNI + other current transfers from ROW, net (Receipts less payments)
8.GNDI = NNDI + CFC = GNI + other current transfers from ROW, net (Receipts less payments)
9.Gross Capital Formation= Gross Savings+ Net Capital Inflow from ROW
10.GCF = GFCF + CIS + Valuables + Errors and Omissions
11.Gross Disposable Income of Govt. = GFCE + Gross Saving of GG
12. Gross Disposable Income of Households = GNDI GDI of Govt. Gross Savings of All Corporations

Kyc aml terms

Kyc aml terms

AML Anti-Money Laundering

BM Branch Manager

BDD Basic Due Diligence

CAP Customer Acceptance Program

CBI Central Bureau of Investigation

CBS Core Banking Solution

CCR Counterfeit Currency Report

CRCM Customer Risk Categorisation Model

CDD Customer Due Diligence

CIP Customer Identification Program

CRO Customer Relationship Officer

CTR Cash Transaction Report

DCCB District Central Cooperative Bank

EDD Enhanced Due Diligence

FATF Financial Action Task Force

FIU-IND Financial Intelligence Unit - India

HNI High Net Worth Individual

HUF Hindu Undivided Family

IBA Indian Banks’ Association

KYC Know Your Customer

ML Money Laundering

NRI Non-Resident Indian

PACS Primary Agricultural Cooperative Societies

PEP Politically Exposed Person

PIO Person of Indian Origin

PMLA Prevention of Money Laundering Act 2002

PMLR Prevention of Money Laundering Rules 2005

PO Principal Officer

RBI Reserve Bank of India

RRB Regional Rural Banks

NABARD National Bank for Agriculture and Rural Development

NAFSCOB National Federation of State Cooperative Banks

NRI Non Resident Indian

NSDL National Securities Depository Limited

NTR Non-Profit Organisation Transaction Reports

SA Staff Assistant

SCB State Cooperative Banks

SDD Simplified Due Diligence

STR Suspicious Transaction Report

UAPA Unlawful Activities Prevention Act

UN United Nations

UNSCR United Nation Security Council Resolution

Possible indication of Suspicion.. KYC AML

 Possible indication of Suspicion:

Identity of client



False identification documents

Identification documents which could not be verified within

reasonable time

Non face to face client

Clients in high risk jurisdiction

Doubt over the real beneficiary of the account

 Accounts opened with names very close to other established

business entities

Receipt back of well come kit undelivered at the address given by

the client

Bounced communication

 Frequent change of name, address and bank and demat account

details.



Suspicious Background



Suspicious backgrounds or links with criminals

Multiple Accounts

 Large number of accounts having a common parameters such as

common partners / directors 1 promoters I address I email address /

telephone numbers, introducer or authorized signatory

 Unexplained transfers between such multiple accounts.



Activity in Accounts

 Unusual activity compared to past transactions

 Use of different accounts by client alternatively

 Sudden activity in dormant accounts

 Activity inconsistent with what would be expected fiom declared

income of Client

Nature of Transactions

 Unusual or unjustified complexity

 No economic rationale

Source of funds are doubtful

 Appears to be case of insider trading

Purchases made on own account transferred to a third party through

an off market transactions through DP account

 Transactions reflect likely market manipulations

Suspicious off market transactions

FX OPERATION:- Recollected questions

FX OPERATION:-
Recollected questions are:

1) How many incoterms?
2) Full form of DAT
3)Few questions from doc letter of credit .
4)Nearly 8 questions on LRS
5)NRI remittances limits etc
6)Basic questions on URR 725,
7)URC 522
8)ISP 98
9)Known holiday in forex
10)One question on section of fema
11)Ecgc scheme
12)Question on customs related
13)TT buying TT selling 
14)Bill discounting
15)Insurance docs in LC
16) three numericals on cross rates

Many of them are direct questions from FEDAI books.

Foreign exchange operations

Forex contents link here
https://iibfadda.blogspot.com/search/label/Forex

Foreign exchange operations Syllabus ::

I. a) FEDAI Role and Rules b) Foreign Exchange Rates and Risk Management c) Code of Conduct, Ethics / Compliance, Corporate Governance II. Regulatory Requirements under FEMA for Resident / Non-resident Individuals a) Remittance Facilities under LRS b) Other Remittance Facilities for Resident indians / others c) Various foreign currency accounts in india / Abroad d) Acquisition of Assets, Immovable properties outside India, including investments in securities abroad e) Remittance of Assets f) Facilities for Non-resident Indians - Deposits Accounts, Investments, Borrowing etc. III. Regulatory Requirements under FEMA for Resident / Non-resident Entities a) Import of Goods & Services and other non-import remittance b) External commercial borrowing c) Export of goods and services d) Investments outside India e) Investments in India by non-resident Corporates / FPIs / Others Entities f) Establishments of LO / BO / PO in India by foreign entities IV. Documentary Credits & Standby Credits a) ICC guidelines pertining to INCOTERMS 2010, URC 522 b) UCP 600, eUCP version 1.1 c) ISBP - ICC PUB. 745, URBO - ICC PUB. 750, URDG 758 d) DOCDEX Rules - ICC PUB. 872 V. Export Finance a) Various finance available by way for Pre-shipment / Post-shipment finance in Rupes and Foreign Currency b) International Factoring, Forfaiting c) Export Credit Guarantee Corporatio (ECGC) VI. Foreign Trade Policy (FTP) 2015-20 a) Various policy issues withspecific relevance to AD Banks with latest updations ..FX OPERATION:- Recollected questions are: 1) How many incoterms? 2) Full form of DAT 3)Few questions from doc letter of credit . 4)Nearly 8 questions on LRS 5)NRI remittances limits etc 6)Basic questions on URR 725, 7)URC 522 8)ISP 98 9)Known holiday in forex 10)One question on section of fema 11)Ecgc scheme 12)Question on customs related 13)TT buying TT selling 14)Bill discounting 15)Insurance docs in LC 16) three numericals on cross rates Many of them are direct questions from FEDAI books. Purchase FEDAI 7 BOOKS as mentioned by the IIBF and use my FX individual PDF and by topic wise i have updated in blog also use it.... No need separate PDF.. same like BFM 1st module and practice more numerical s form blog

New Govt Schemes:: Ayushman Bharat health insurance scheme: Who all it covers and how

New Govt Schemes: Ayushman Bharat health insurance scheme: Who all it covers and how 

Prime Minister Modi's flagship Ayushman Bharat Scheme will cover over 10 crore poor and vulnerable families providing cashless coverage of up to Rs 5 lakh per family per year for secondary and tertiary care hospitalisation. This will be the world's largest government funded health care programme.

Every person listed in the Socio Economic Caste Census (SECC) database will automatically be enrolled in the scheme. While the beneficiaries can avail benefits in both public and empanelled private facilities, the payment for treatment will be done on package rate (to be defined by the government in advance) basis. "It is essential to ensure that we free the poor of India from the clutches of poverty due to which they cannot afford healthcare," Modi said.

SECC survey was taken as a base to calculate the number of beneficiaries under the scheme which would be rolled out from September 25, on the birth anniversary of Pandit Deendayal Upadhyay as announced by prime minister. This scheme stands to benefit 50 crore Indians by providing them cashless cover of upto Rs 5 lakh per family per year without any premium. "It is high time we ensure that the poor of India get access to good quality and affordable healthcare," Prime Minister Modi said.

According to the SECC survey 2011, there were in total 24.49 Ccrore households out of which 17.97 crore were rural households and 6.51 crore were urban households.

People who are eligible to receive benefits under the Ayushman bharat scheme are as follows:

In Rural areas

1. Households living in only one room with kucha walls and kucha roof.

2. Households with no adult member between age 16 to 59

3. Female headed households with no adult male member between age 16 to 59

4. Households having at least one disabled member and no able-bodied adult member

5. SC/ST households

6. Landless households deriving major part of their income from manual casual labour

7. Households without shelter

8. Destitute/ living on alms

9. Manual scavenger families

10. Primitive tribal groups

11. Legally released bonded labour

In Urban areas:

The following occupational category of workers are automatically included in the list

1. Rag picker

2. Beggar

3. Domestic worker

4. Street vendor/ Cobbler/hawker / Other service provider working on streets

5. Construction worker/ Plumber/ Mason/ Labour/ Painter/ Welder/ Security guard/ Coolie and another head-load worker

6. Sweeper/ Sanitation worker / Mali

7. Home-based worker/ Artisan/ Handicrafts worker / Tailor

8. Transport worker/ Driver/ Conductor/ Helper to drivers and conductors/ Cart puller/ Rickshaw puller

9. Shop worker/ Assistant/ Peon in small establishment/ Helper/Delivery assistant / Attendant/ Waiter

10. Electrician/ Mechanic/ Assembler/ Repair worker

11. Washer-man/ Chowkidar

Highlights

Ayushman Bharat aims to provide healthcare facilities to over 10 crore families covering urban and rural poor

PMJAY-Ayushman Bharat is the biggest government-sponsored healthcare scheme in the world

The scheme offers an insurance cover of Rs 5 lakh, which will cover almost 50 crore citizens

Prime Minister Shri Narendra Modi, in his Independence Day speech of 2018, announced the launch of the Ayushman Bharat-National Health Protection Scheme (AB-NHPS). He said that the national health insurance scheme will be rolled out on a pilot basis in some states. The full-scale roll-out of the project is expected to be in September end. 

On September 23, 2018, the Prime Minister Narendra Modi launched Ayushman Bharat, world's largest government-funded healthcare scheme in Jharkhand's capital Ranchi. The Centre's flagship scheme has been renamed as PM Jan Arogya Yojana (PMJAY). The scheme will become operational from September 25 on the birth anniversary of Pandit Deendayal Upadhyay. 

According to the various government websites, here is a look at what the health insurance scheme is all about. 

Who is the AB-NHPS aimed at?

The scheme is targeted at poor, deprived rural families and identified occupational category of urban workers' families. So, if we were to go by the Socio-Economic Caste Census (SECC) 2011 data, 8.03 crore families in rural and 2.33 crore in urban areas will be entitled to be covered under these scheme, i.e., it will cover around 50 crore people. 

AB-NHPS will have a defined benefit cover of Rs 5 lakh per family (on a family floater basis) per year for secondary and tertiary care hospitalisation. It will offer a benefit cover of Rs 5 lakh per family per year. It will subsume the existing Rashtriya Swasthya Bima Yojana (RSBY), launched in 2008 by the UPA government. 

Who all are covered? 

To ensure that nobody is left out (especially women, children and the elderly), there will be

no cap on the family size and age under the AB-NHPS. The scheme will be cashless and

paperless at public hospitals and empanelled private hospitals.

How will the entitlement be decided?

AB-NHPM will be an entitlement based scheme where it will be decided on the basis of

deprivation criteria in the SECC database. The beneficiaries are identified based on the

deprivation categories (D1, D2, D3, D4, D5, and D7) identified under the SECC database

for rural areas. For the urban areas, the 11 occupational criteria will determine entitlement.

In addition, Rashtriya Swasthya Bima Yojna (RSBY) beneficiaries in states where it is

active are also included.

Rural area categories: The different categories in rural areas include families having only

one room with kucha walls and kucha roof; families having no adult member between the

ages of 16 years and 59 years; female-headed households with no adult male member

between the ages of 16 years and 59 years; disabled members and no able-bodied adult

member in the family; SC/ST households; and landless households deriving major part of

their income from manual casual labour.

Also, these families in rural areas having any one of the following will be automatically

included: households without shelter, destitute, living on alms, manual scavenger families,

primitive tribal groups, and legally released bonded labour.

Urban area categories: For urban areas, 11 defined occupational categories are entitled

under the scheme. Main source of income related to household has been clarified in urban

areas as beggars; rag-pickers; domestic workers; street vendors/cobblers/hawkers/other

service providers working on the streets; construction workers/ plumbers/ masons/ labor/

painters/ welders/ security guards/coolies and other head-load workers; Sweepers/

sanitation workers/ malis; Home-based workers/ artisans/handicrafts workers/ tailors;

Transport workers/ drivers/ conductors/helpers to drivers and conductors/cart pullers/

workers; washer-men/ chowkidars; Other work/Non-work ; Non-work (Pension/ Rent/

Interest, etc.)

What is the hospitalisation process?

The beneficiaries will not be required to pay any charges and premium for the

hospitalisation expenses. The benefit also include pre- and post-hospitalisation expenses.

Each empanelled hospital will have an 'Ayushman Mitra' to assist patients and will

coordinate with beneficiaries and the hospital. They will run a help desk, check documents

to verify the eligibility, and enrolment to the scheme.

Also, all the beneficiaries will be given letters having QR codes which will be scanned and

a demographic authentication will be conducted for identification and to verify his or her

eligibility to avail the benefits of the scheme.

Benefits of the scheme are portable across the country and a beneficiary covered under

the scheme will be allowed to take cashless benefits from any public/private empanelled

hospitals across the country.

What are the inclusions?

AB-NHPM will cover medical and hospitalisation expenses for almost all secondary care

and most of tertiary care procedures. The health ministry has included 1,354 packages in

the scheme under which treatment for coronary bypass, knee replacements and stenting

among others would be provided at 15-20 per cent cheaper rates than the Central

Government Health Scheme (CGHS).

What is the eligibility criteria for a beneficiary?

There is no enrolment process in AB-NHPM as it is an entitlement-based mission. Families

who are identified by the government on the basis of deprivation and occupational criteria

A list of eligible families has been shared with the respective state governments as well as

state level departments like the ANMs, BMO, and BDOs of relevant areas. A dedicated

AB-NHPM family identification number will be allotted to eligible families. Only families

whose name is on the list are entitled for the benefits of AB-NHPM.

Additionally, families with an active RSBY cards as of 28 February 2018 will covered. No

additional new families can be added under AB-NHPM. However, names of additional

family members can be added for those families whose names are already on the SECC

list.

The official website of AB-NHPM is www.abnhpm.gov.in . One may visit the site to view

and download the beneficiary eligibility and empanelled hospitals list as and when it gets

updated.

Hospital eligibility

Services under the scheme can be availed at all public hospitals and empaneled private

health care facilities. Also, the basic empanelment criteria allows empanelment of a

hospital with a minimum of 10 beds, with the flexibility provided to states to further relax

this if required. Empanelment of the hospitals under AB-NHPM will be conducted through

an online portal by the state government. Information about empaneled hospitals will be

made available through different means such as government websites and mobile apps.

Beneficiaries can also call the helpline number at 14555.

To control costs, the payments for treatment will be done on package rate (to be defined

by the Government in advance) basis. However, hospitals with NABH/NQAS accreditation

can be incentivised for higher package rates subject to procedure and costing guidelines.

Certified credit professionals Recollected last week

regarding questions asked, regarding toughness paper Medium to tough
1case study(5qn) related der and solvency ratio
1case study(5qn) related break even analysis
1case study(5qn) related to b/s analysis
1problem where projected turnover and current ratio and liability was given asking lending according to tandon second method
1case study related to tandon 1st and second method lending
1case study for identifying lc limits and lc operations
qn related to msme and sarfaesi
1qn asking finding incorrect statement related to credit policy (ans was npa management)
2 qns asking to match items in 1st and second coloumn one was related to provisioning of standard & np loans and second related to lc
1qn asking to which loan a/c stock audit is mandatory
1qn related to llp
1 case study related to profitability ratios
expand ECNOS
1case study related to export finance
1qn regarding gold card scheme of exporters
1qn of PCFC
1qn priority sector lending
1problem asking provisioning required for doubtful asset with CGTMSE cover
1qn regarding enforcement of documents
1qn regarding when to register charge with ROC
1 qn regarding restructuring of agri loan
1qn asking max amt of loan which can be referred to lok adalat

UCP 600

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

https://iibfadda.blogspot.com/2018/06/ucp-600-bfm-exam-very-important.html?m=1

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

Govt schemes

Pradhan Mantri Jan Dhan Yojana (PMJDY)

Hon’ble Prime Minister announced Pradhan Mantri Jan Dhan Yojana as the National Mission on Financial Inclusion in his Independence Day address on 15th August 2014, to ensure comprehensive financial inclusion of all the households in the country by providing universal access to banking facilities with at least one basic bank account to every household, financial literacy, access to credit, insurance and pension facility. Under this, a person not having a savings account can open an account without the requirement of any minimum balance and, in case they self-certify that they do not have any of the officially valid documents required for opening a savings account, they may open a small account. Further, to expand the reach of banking services, all of over 6 lakh villages in the country were mapped into 1.59 lakh Sub Service Areas (SSAs), with each SSA typically comprising of 1,000 to 1,500 households, and in the 1.26 lakh SSAs that did not have a bank branch, Bank Mitras were deployed for branchless banking.

Thus, PMJDY offers unbanked persons easy access to banking services and awareness about financial products through financial literacy programmes. In addition, they receive a RuPay debit card, with inbuilt accident insurance cover of Rs. 1 lakh, and access to overdraft facility upon satisfactory operation of account or credit history of six months. Further, through Prime Minister’s Social Security Schemes, launched by the Hon’ble Prime Minister on 9th May 2015, all eligible account holders can access through their bank accounts personal accident insurance cover under Pradhan Mantri Suraksha Bima Yojana, life insurance cover under Pradhan Mantri Jeevan Jyoti Bima Yojana, and guaranteed minimum pension to subscribers under Atal Pension Yojana.

PMJDY was conceived as a bold, innovative and ambitious mission. Census 2011 estimated that out of 24.67 crore households in the country, 14.48 crore (58.7%) had access to banking services. In the first phase of the scheme, these households were targeted for inclusion through the opening of a bank account within a year of the launch of the scheme. The actual achievement, by 26th January 2015, was 12.55 crore. As on 29.3.2017, the number of accounts has grown to 28.17 crores. Further, in 2011, only 0.33 lakh SSAs had banking facility and through the provision of Bank Mitras in 1.26 lakh branchless SSAs, banking services were extended throughout rural India. The inclusive aspect of this is evident from the fact that 16.87 crores (60%) of PMJDY accounts are in rural areas and 14.49 crore (over 51%) PMJDY account holders are women.

The deposit base of PMJDY accounts has expanded over time. As on 29th March 2017, the deposit balance in PMJDY accounts was Rs. 62,972 crore. The average deposit per account has more than doubled from Rs. 1,064 in March 2015 to Rs. 2,235 in March 2017.

The Bank Mitra network has also gained in strength and usage. The average number of transactions per Bank Mitra, on the Aadhaar Enabled Payment System operated by Bank Mitras, has risen by over eightyfold, from 52 transactions in 2014-15 to 4,291 transactions in 2016-17.

From Jan Dhan to Jan Suraksha-

For creating a universal social security system for all Indians, especially the poor and the under-privileged the Hon’ble Prime Minister launched three Social Security Schemes in the Insurance and Pension sectors on 9th of May 2015.

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)-

The PMJJBY is available to people in the age group of 18 to 50 years having a bank account who give their consent to join /enable auto-debit. Aadhar is the primary KYC for the bank account. The life cover of Rs. 2 lakh is for the one year period stretching from 1st June to 31st May and is renewable. Risk coverage under this scheme is for Rs. 2 lakh in case of death of the insured, due to any reason. The premium is Rs. 330 per annum which is to be auto-debited in one installment from the subscriber’s bank account as per the option given by him on or before 31st May of each annual coverage period under the scheme. The scheme is being offered by the Life Insurance Corporation and all other life insurers who are willing to offer the product on similar terms with necessary approvals and tie up with banks for this purpose. As on 31st March 2017, cumulative gross enrollment reported by banks subject to verification of eligibility, etc. is over 3.10 crore under PMJJBY. A total of 62166 claims were registered under PMJJBY of which 59118 have been disbursed.

Pradhan Mantri Suraksha Bima Yojana (PMSBY)-

The Scheme is available to people in the age group 18 to 70 years with a bank account who give their consent to join/ enable auto-debit on or before 31st May for the coverage period 1st June to 31st May on an annual renewal basis. Aadhar would be the primary KYC for the bank account. The risk coverage under the scheme is Rs. 2 lakh for accidental death and full disability and Rs. 1 lakh for partial disability. The premium of Rs.12 per annum is to be deducted from the account holder’s bank account through ‘auto-debit’ facility in one installment. The scheme is being offered by Public Sector General Insurance Companies or any other General Insurance Company who are willing to offer the product on similar terms with necessary approvals and tie up with banks for this purpose. As on 31st March 2017, cumulative gross enrolment reported by Banks subject to verification of eligibility etc. is over 9.94 crore under PMSBY. A total of 12,534 Claims were registered under PMSBY of which 9,403 have been disbursed.

Atal Pension Yojana (APY)-

APY was launched on 9th May 2015 by the Prime Minister. APY is open to all saving bank/post office saving bank account holders in the age group of 18 to 40 years and the contributions differ, based on pension amount chosen. Subscribers would receive the guaranteed minimum monthly pension of Rs. 1,000 or Rs. 2,000 or Rs. 3,000 or Rs. 4,000 or Rs. 5,000 at the age of 60 years. Under APY, the monthly pension would be available to the subscriber, and after him to his spouse and after their death, the pension corpus, as accumulated at age 60 of the subscriber, would be returned to the nominee of the subscriber. The minimum pension would be guaranteed by the Government, i.e., if the accumulated corpus based on contributions earns a lower than estimated return on investment and is inadequate to provide the minimum guaranteed pension, the Central Government would fund such inadequacy. Alternatively, if the returns on investment are higher, the subscribers would get enhanced pensionary benefits.

In the event of premature death of the subscriber, Government has decided to give an option to the spouse of the subscriber to continue contributing to APY account of the subscriber, for the remaining vesting period, till the original subscriber would have attained the age of 60 years. The spouse of the subscriber shall be entitled to receive the same pension amount as that of the subscriber until the death of the spouse. After the death of both the subscriber and the spouse, the nominee of the subscriber shall be entitled to receive the pension wealth, as accumulated till age 60 of the subscriber. As on 31st March 2017, a total of 48.54 lakh subscribers have been enrolled under APY with a total pension wealth of Rs. 1,756.48 crore.

Pradhan Mantri Mudra Yojana-

The scheme was launched on 8th April 2015. Under the scheme a loan of upto Rs. 50,000 is given under sub-scheme ‘Shishu’; between Rs. 50,000 to 5.0 Lakhs under sub-scheme ‘Kishore’; and between 5.0 Lakhs to 10.0 Lakhs under sub-scheme ‘Tarun’. Loans taken do not require collaterals. These measures are aimed at increasing the confidence of young, educated or skilled workers who would now be able to aspire to become first generation entrepreneurs; existing small businesses, too, will be able to expand theirs activates. As on 31st March 2017, Rs. 1,80,528.54 crores sanctioned (Rs. 85,100.74 cr. - Shishu, Rs. 53,545.14 cr. Kishore and Rs. 41,882.66 cr. - Tarun category), in 3,97,01,047 accounts.

Stand Up India Scheme-

The government of India launched the Stand Up India scheme on 5th April 2016. The Scheme facilitates bank loans between Rs.10 lakh and Rs.1 crore to at least one Scheduled Caste/ Scheduled Tribe borrower and at least one Woman borrower per bank branch for setting up greenfield enterprises. This enterprise may be in manufacturing, services or the trading sector. The scheme which is being implemented through all Scheduled Commercial Banks is to benefit at least 2.5 lakh borrowers. The scheme is operational and the loan is being extended through Scheduled Commercial Banks across the country.

Stand Up India scheme caters to promoting entrepreneurship amongst women, SC & ST category i.e those sections of the population facing significant hurdles due to lack of advice/mentorship as well as inadequate and delayed credit. The scheme intends to leverage the institutional credit structure to reach out to these underserved sectors of the population in starting greenfield enterprises. It caters to both ready and trainee borrowers.

To extend collateral free coverage, Government of India has set up the Credit Guarantee Fund for Stand Up India (CGFSI). Apart from providing credit facility, Stand Up India Scheme also envisages extending hand-holding support to the potential borrowers. It provides for convergence with Central/State Government schemes. Applications under the scheme can also be made online on the dedicated Stand Up India portal (www.standupmitra.in). As on 29.03.2017, Rs. 5,237.29 crore has been sanctioned in 25,435 accounts (20,305 – women, 1,086-ST and 4,044 – SC).

Pradhan Mantri Vaya Vandana Yojana-

Based on the success and popularity of Varishtha Pension Bima Yojana 2003 (VPBY-2003), Varishtha Pension Bima Yojana 2014 (VPBY-2014) schemes, and to protect elderly persons aged 60 years and above against a future fall in their interest income due to the uncertain market conditions, as also to provide social security during old age, it has been decided to launch a simplified scheme of assured pension of 8% called the ‘प्रधानमंत्री वय वन्दना योजना’. This is implemented through Life Insurance Corporation (LIC) of India. As per the scheme, on payment of an initial lump sum amount ranging from a minimum purchase price of Rs. 1,50,000/- for a minimum pension of Rs 1,000/- per month to a maximum purchase price of Rs. 7, 50,000/- for the maximum pension of Rs. 5,000/- per month, subscribers will get an assured pension based on a guaranteed rate of return of 8% per annum, payable monthly.

Different types of LC

Different Type of LC

1. Irrevocable LC. This LC cannot be cancelled or modified without consent of the beneficiary (Seller). This LC reflects absolute liability of the Bank (issuer) to the other party.

2. Revocable LC. This LC type can be cancelled or modified by the Bank (issuer) at the customer's instructions without prior agreement of the beneficiary (Seller). The Bank will not have any liabilities to the beneficiary after revocation of the LC.

3. Stand-by LC. This LC is closer to the bank guarantee and gives more flexible collaboration opportunity to Seller and Buyer. The Bank will honour the LC when the Buyer fails to fulfill payment liabilities to Seller.

4. Confirmed LC. In addition to the Bank guarantee of the LC issuer, this LC type is confirmed by the Seller's bank or any other bank. Irrespective to the payment by the Bank issuing the LC (issuer), the Bank confirming the LC is liable for performance of obligations.

5. Unconfirmed LC. Only the Bank issuing the LC will be liable for payment of this LC.

6. Transferable LC. This LC enables the Seller to assign part of the letter of credit to other party(ies). This LC is especially beneficial in those cases when the Seller is not a sole manufacturer of the goods and purchases some parts from other parties, as it eliminates the necessity of opening several LC's for other parties.

7. Back-to-Back LC. This LC type considers issuing the second LC on the basis of the first letter of credit. LC is opened in favor of intermediary as per the Buyer's instructions and on the basis of this LC and instructions of the intermediary a new LC is opened in favor of Seller of the goods.

8. Payment at Sight LC. According to this LC, payment is made to the seller immediately (maximum within 7 days) after the required documents have been submitted.

9. Deferred Payment LC. According to this LC the payment to the seller is not made when the documents are submitted, but instead at a later period defined in the letter of credit. In most cases the payment in favor of Seller under this LC is made upon receipt of goods by the Buyer.

10. Red Clause LC. The seller can request an advance for an agreed amount of the LC before shipment of goods and submittal of required documents. This red clause is so termed because it is usually printed in red on the document to draw attention to "advance payment" term of the credit.