Bcsbi rules

1. Title
These Rules may be called the Banking Code Rules.
2. Definitions
In these Rules -
a. 'BCSBI' means the Banking Codes and Standards Board of India;
b. 'Board' means the Governing Council of the Banking Codes and
Standards Board of India (BCSBI);
c. 'Code' means the Code of Bank's Commitment to Customers, as
amended from time to time;
d. 'Code Compliance Officer' means an employee of a Member appointed
as such in accordance with the requirements of these Rules;
e. 'Compliance Policy' means the policy set out in Chapter II of these
Rules;
f. 'Covenant' means the Covenant as in Form A of these Rules;
g. ' Disciplinary Procedure' means the disciplinary procedures set out in
Chapter III of these Rules;
h. 'Executive' means the Chief Executive Officer of the BCSBI;
i. 'Member' means a bank which has been admitted as a member of the
BCSBI in terms of Chapter I of these Rules.
CHAPTER I - MEMBERSHIP
3. Eligibility for Membership
3.1 The applicant must be a bank in India included in Schedule II to the Reserve
Bank of India Act, 1934.
3.2 The applicant must agree to adhere to the Code and sign the Covenant in
Form A.
3.3 The applicant must pay a non-refundable registration fee of Rs.10,000/-
(Rupees ten thousand only) to the BCSBI.
4. Application for Membership
4.1 Application for membership of the BCSBI shall be made in Form B.
4.2 The Chief Executive Officer shall place the application within 30 days of its
receipt before the Board.
4.3 The decision of the Board for admitting the applicant as member or rejecting
the application shall be communicated to the applicant within 45 days from
the date of receipt of the application.
4.4 The communication for admission shall state the membership fee payable
by the applicant for the first year, which it shall pay within thirty days from

the date of the receipt of the said communication.
4.5 The applicant whose application is rejected may make a representation to
the Board within 30 days from the date of receipt of communication of
rejection.
4.6 The Board may, if it considers necessary, afford an opportunity of hearing to
the applicant.
4.7 The decision of the Board regarding the admission of the applicant to the
membership of the BCSBI shall be final.
5. Membership Fees
5.1 Membership fees payable by Members shall be in proportion to their gross
domestic assets as on March 31, of the previous year and shall be of
such amount, as the Board may determine as payable by each Member.
Provided that the Board may prescribe a minimum fee that each Member
shall be liable to pay.
5.2 Membership fee for the first year shall be paid as stated in Rule 4.4.
5.3 Membership fee for the subsequent years shall be paid annually in
advance in respect of each financial year commencing April 1 within 30
days of the date of the invoice issued by the Executive.
5.4 Failure to pay annual membership fee within the specified time shall incur
a charge of interest at the rate of 2 percent per annum above the Bank
Rate from the date it is payable till the date of payment.
Provided where a Member does not pay the membership fee together with
interest due thereon for six months from the date of invoice, the Board shall
have a right to cancel membership of the bank without any further notice in
the matter.
5.5 Membership fee shall not be liable to be refunded on cessation of
membership whether on account of the Member's voluntary withdrawal or
on cancellation by the Board or for any reason whatsoever
5.6 Voluntary withdrawal of membership by the Member or its cancellation by
the Board shall not prejudice the right of the Board to institute any
investigation or disciplinary proceedings within three months of such
withdrawal/ cancellation or the right to continue any investigation or
disciplinary proceedings following such withdrawal/cancellation

6. Obligations of the Member
(a) A Member shall provide the BCSBI with such information as the BCSBI may
require from it from time to time to discharge its function of monitoring
compliance with the Code.
(b) Authorised representatives of the BCSBI shall be entitled to visit the
premises of any Member to verify and gather such information deemed
necessary for monitoring compliance with the Code.
(c) The Member shall cooperate with the authorised representatives of the
BCSBI visiting the bank.
(d) Incognito visits may also be undertaken to the premises of the Member.
(e) Member shall publish in its Annual Report sanctions imposed by the BCSBI.
7. Obligations of the BCSBI

7.1 In discharging its functions and in all its dealings with the Members, the BCSBI shall act in good faith. 7.2 The BCSBI shall not, save as required by law, or as permitted in accordance with these Rules, divulge any information in relation to the affairs or business of the Member which it knows at the time to be confidential and which has come in its possession in the course of its business. Notwithstanding this, the BCSBI shall be free to divulge any information about any Member to the Reserve Bank of India. CHAPTER II - COMPLIANCE POLICY 8. Submission of Annual Statement of Compliance 8.1 The Annual Statement of Compliance containing such information and details as the BCSBI may specify shall be submitted to the Board before July 31. This Statement shall be signed by the duly authorised Code Compliance Officer or an official duly authorised by the Member. 8.2 Failure to submit the duly completed Annual Statement of Compliance by due date, shall render the Member liable to a daily default fine as may be decided by the Board, provided that such fine shall not exceed Rs.1,000/- (Rupees one thousand only) per day. Provided further that if the default in submission of the duly completed Annual Statement of Compliance continues for six months from the date when it is due, the Board shall have the right to take appropriate action. 9. Code Compliance Officer 9.1 Every Member shall have a Code Compliance Officer at each of its Controlling Offices above the level of the branch and at the Head Office. Name, address and contact details of Code Compliance Officer/s shall be promptly notified to the BCSBI and shall be displayed at the branches falling under his jurisdiction as also be available to customers. 9.2 The Code Compliance Officer shall maintain a Register to keep a record of all breaches within his jurisdiction of which he becomes aware and also the details of the remedial action taken. 9.3 The Code Compliance Officer shall inform the BCSBI of (a) every breach, within 7 days, and (b) the remedial action taken, within 15 days, of the breach being brought to his notice. 10 Breach 10.1 Failure to comply with or fulfil any commitment/s or any obligation/s, in full or in part thereof, under the Code or these Rules shall constitute a Breach. 10.2 The purposes of disciplinary sanctions for breach of the Code or these Rules are: (a) to act as a deterrent against future breaches by the delinquent Member; (b) to engender public confidence in the Code by demonstrating that Members cannot indulge in unfair, unreasonable or unethical conduct with impunity; (c) to help prevent Members from profiting from breaches whether by acts of commission, such as exploitative marketing or misleading advertising, or acts of omission, such as failure to upgrade systems and procedures to ensure compliance with Code requirements; (d) to help exclude Members which demonstrate unwillingness or serious inability to comply with Code obligations from membership. 10.3 A breach by a Member shall render it liable to sanction under these Rules. The Board shall act in a manner that is transparent, proportionate and consistent. 10.4 No sanction shall be imposed on any Member without giving it an opportunity of hearing by the Board. CHAPTER III - DISCIPLINARY PROCEDURE 11. The objective of the Disciplinary Procedure is to enable a non-compliant member to put right the system in a collaborative manner as quickly as possible. The effort would be to take remedial action involving minimum cost and inconvenience rather than penal measures. 12. Sources of Information 12.1 The BCSBI may choose to keep confidential, if so requested, the identity of any person who refers a breach for investigation to the BCSBI or its representative. 12.2 The BCSBI shall not undertake or cause investigation on a complaint which is anonymous or is considered to be fictitious, vexatious or frivolous. With respect to other complaints, the BCSBI may undertake or cause investigation at its discretion, but shall be under no obligation to do so. 13. Investigation 13.1 The Board may conduct or cause to conduct an investigation into a breach which is alleged or suspected of having been committed or which is alleged or suspected of being committed by a Member. 13.2 The Executive may make enquiries, seek clarification if necessary from the Code Compliance Officer, or in his absence, from the Chief Executive of the Member concerned, and from any other person it considers necessary. 13.3 The Board may appoint or request the Member to appoint accountant/s or other relevant professional/s to assist it in the investigation. Expenses including professional fees in respect of such appointment shall be payable by the Member concerned. 14. Procedure 14.1 The Executive shall prepare a draft statement of facts making out a prima facie case of the alleged Breach. 14.2 The draft statement of facts shall be served on the Member concerned, calling upon it to submit its explanation thereto within the time specified in the notice. 14.3 The Board shall consider the explanation, if any, and decide if the Breach is established and the sanction to be imposed, having regard to its gravity and other relevant factors. 14.4 The BCSBI shall inform its decision to the Member within 10 days of the meeting of the Governing Council in which such decision is taken. 14.5 The Member shall be provided with the reasons for the decision, and for the proposed sanction, if any, to enable it to make a representation in writing to the Board. The representation must reach the Board within 30 days of the date of the letter advising the Member of the decision of the Board. 14.6 The representation under Rule 14.5 shall be considered by the Board to decide whether its decision under Rule 14.3 needs any change. 14.7 The Member shall be advised of the Board's final decision within ten days of the meeting of the Board at which that decision is made. 14.8 The final decision shall take effect from the date it is communicated to the Member concerned. Provided that where no representation is received under Rule 14.5 within 20 days of the date of the letter advising the Member of the decision of the Board, the decision of the Board shall become effective on the expiry of that period. 15 Sanctions 15.1 For arriving at the sanction, all relevant factors shall be taken into account, including: (a) the extent of actual or potential harm to the customer; (b) whether the breach was isolated or systemic; (c) whether the breach was inadvertent, or represented a knowing act of commission or omission; (d) the length of time over which the breach continued undetected or without effective remedial action being taken; (e) whether there were any warning signals, such as concerns expressed in the media, customer complaints, or guidance from the BCSBI, and what heed was paid to such signals; (f) the extent of damage to confidence in, or the reputation of, the banking industry at large; (g) the extent to which the Member sought to profit, or to avoid or mitigate a loss, by its actions or omissions. 15.2 The Board shall be entitled to impose one or more of the following sanctions: (a) the publication of the Member's name and details of the breach in the Annual Report of the BCSBI; (b) the issue of directions as to future conduct of the Member; (c) the issue of a warning or reprimand to the Member; (d) the cancellation or suspension for a limited period of membership of the Member; (e) public censure of the Member, by notifying the media of the findings in respect of a breach or breaches and any sanctions applied, and posting the press release on the BCSBI's website. Instead of, or in addition to, notifying the media, notification may also be made to any other bodies, as the Board may deem fit. 15.3 The Board shall ensure that its sanction does not affect the confidentiality obligation of the Member to its customers. 16. Costs Each party shall bear its own costs incurred during the Disciplinary Procedure except that the Member shall bear the cost of any appointments made under Rule 14.3. 17. Intimation to the Reserve Bank of India Where a sanction is imposed on any Member, the BCSBI shall inform the Reserve Bank of India the details of the Breach and the sanctions imposed. 18. Complaints 18.1 A Member who is dissatisfied in his dealings with the BCSBI may address his complaint initially to the Chief Executive Officer, unless it concerns the Chief Executive Officer's personal handling of the matter. 18.2 If the Chief Executive Officer fails to resolve the complaint, or is personally involved in the cause of complaint, the complainant may write to the Chairman of the Board. 18.3 Such complaints will be dealt with within thirty days from the date of its receipt. 19. Exemption The Board may, for reasons to be recorded in writing, exempt any Member from any of its obligations, including obligation to comply with the Code, or any rules or regulations, for such period and subject to such conditions as the Board may deem fit. 20. Powers to alter Rules 20.1 The Board may alter these Rules, Compliance Policy, Disciplinary Procedure, Forms etc. to enable the BCSBI to discharge its functions of monitoring and encouraging compliance with the Code. 20.2 An alteration made under Rule 20.1 will be notified to the Members in writing not less than 20 days prior to the date on which it comes into effect. 21. A decision of the Board shall be binding on the Member. (Rule

Bcsbi

Banking Codes and Standards Board of India (BCSBI)::



In November 2003, Reserve Bank of India (RBI) constituted the Committee on Procedures and Performance Audit of Public Services under the Chairmanship of Shri S.S.Tarapore (former Deputy Governor) to address the issues relating to availability of adequate banking services to the common person. The mandate to the Committee included identification of factors that inhibited the attainment of best customer services and suggesting steps to improve the quality of banking services to individual customers. The Committee felt that in an effort to continuously upgrade the package of services that banks offered to their customers, there was a need for benchmarking of such services. After an in-depth study at the grass-roots level, the Committee concluded that there was an institutional gap for measuring the performance of banks against a bench mark reflecting the best practices (Code and Standards). Therefore, the Committee recommended setting up of the Banking Codes and Standards Board of I ndia (BCSBI). BCSBI was set up to ensure that the common person as a consumer of financial services from the banking Industry is in no way at a disadvantageous position and really gets what he/she has been promised.



The Scheme of Banking Ombudsman, which has been functioning for quite some time, does not look into systemic issues with a view to enforcing a prescribed quality of service. Ideally, such a function should be performed by a Self-Regulatory Organisation (SRO) but in view of the existing framework of the banking sector in India, it was felt that an independent, autonomous Board will be best suited for the function. Therefore, Dr. Y.V. Reddy, Governor, Reserve Bank of India, in his Monetary Policy Statement (April 2005) announced setting up of the Banking Codes and Standards Board of India in order to ensure that a comprehensive code of conduct for fair treatment of customers was evolved and adhered to.



The Banking Codes and Standards Board of India was registered as a society under the Societies Registration Act, 1860 in February 2006. It functions as an independent and autonomous body. Membership of BCSBI is voluntary and open to scheduled banks. Initially the membership of BCSBI was open to scheduled commercial banks and has now been extended to include Regional Rural Banks and select Urban Co-operative Banks.



The general superintendence, direction and control of the affairs and funds of the Society is vested in the Governing Council (constituted by RBI) consisting of members drawn from different disciplines such as banking, economics, service etc. The first Governing Council relinquished office in December 2011 after which a new Governing Council was constituted.



The main objectives of the BCSBI are



To plan, evolve, prepare, develop, promote and publish comprehensive Codes and Standards for banks, for providing for fair treatment to their customers.



To function as an independent and autonomous body to monitor, and to ensure that the Codes and Standards adopted by banks are adhered to, in letter and spirit, while delivering services to their customers.



BCSBI has in collaboration with the Indian Banks' Association (IBA), evolved two codes - Code of Bank’s Commitment to Customers and the Code of Bank’s Commitment to Micro and Small Enterprises - which set minimum standards of banking practices for member banks to follow when they are dealing with individual customers and micro and small enterprises. These Codes are subject to periodical review and revision.. The central objective of these Codes is promoting good banking practices, setting minimum standards, increasing transparency, achieving higher operating standards and above all, promoting a cordial banker-customer relationship which would foster confidence of the common man in the banking system. The Codes lay great emphasis on transparency and providing full information to the customer before a product or service is sold to him. The Codes are not only commitments of banks to their customers but also in a sense a Charter of Rights for the common person. By setting the minimum standards of customer service, the Codes make the customer aware of he can expect each bank to deal with the his / her day-to-day requirements,



BCSBI monitors the implementation of the Codes through the following methods:



Obtains from member banks an Annual Statement of Compliance (ASC)



Visits branches to find out the status of ground-level implementation of Codes



Studies complaints received from customers and orders / awards issued by Banking Ombudsmen / Appellate Authority to find out whether there is any system-wide deficiency



Organizes an annual Conference with Principal Code Compliance Officers of the Member banks to discuss implementation issues.



BCSBI also



Undertakes campaigns and initiatives to spread awareness of the Codes amongst customers and banks



Provides faculty support to training establishments of banks



Participates in on-location workshops held by / for member banks to increase coverage



associates with customer awareness programmes conducted by Banking Ombudsmen



provides credit counselling services in Mumbai



publishes quarterly newsletter entitled ‘Customer Matters’, containing matters of interest to customers



BCSBI is not a forum for redressal of individual grievances. BCSBI, however, examines each compliant to identify any systemic issue that may exist and takes up the matter with the respective bank to ensure that systems and procedures are suitably amended so that such complaints do not recur.

Current Affairs on 20.12.2018

Today's Headlines from www:

*Economic Times*

📝 Fed ignores Trump to raise rate, trims 2019 forecast to two hikes

📝 ONGC Board to consider OVL listing but IPO ruled out in near future

📝 Indiabulls Real Estate approves restructuring with subsidiaries

📝 K Raheja Corp subsidiary repays NCDs worth Rs 500 crore

📝 284 companies may face prosecution for CSR non-compliance

📝 Banks may remain closed for 5 days due to holidays, strikes in December

📝 Credit lending market continues to see robust growth: Report

*Business Standard*

📝 Centre to seek interim payout from Reserve Bank: Subhash Chandra Garg

📝 J&J loses motion to overturn $4.7 billion talc-ovarian cancer verdict

📝 Oppo calls on India's bond mkt, raises money by non-convertible debentures

📝 Capgemini raises fresher salary by 20%, adds 25,000 more people this year

📝 Airfares in Indian market are 10-15% lower, unsustainable: Boeing official

📝 PE investors fighting tough rules to back insurance companies, say experts

📝 Retail food service sector value expected to touch Rs 5 trn

📝 Agri logistics companies yet to see sizable investor interest, shows data

*Financial Express*

📝 Tata Motors liable to pay tax for possession of chassis, says SC

📝 Shell Eastern Petroleum to acquire 49% stake in Cleantech Solar

📝 Vehicles recalls jump over 2-fold in 2018

📝 Thyssenkrupp sets up technology centre in Pune

📝 M&A deal values saw sharp uptick in 2018, says report

📝 India’s fixed broadband speeds improved the most in 2018, says Ookla

📝 Tech major Garmin bets big on India’s wearables market

*Mint*

📝 NITI Aayog targets $4 trillion economy by 2022-23

📝 Government says genuine investments in start-ups will not be taxed

📝 DGCA mulling new method to get on-time performance of domestic airlines

📝 Binny Bansal seeks $100 mn from Walmart after Flipkart exit

📝 Canara Bank to raise up to ₹3,000 crore via Basel-III compliant bonds

📝 Edtech startup Toppr raises $35 million in fresh funding

📝 Milkbasket gets $7 million funding from Mayfield, others

📝 Maruti Suzuki cuts sales growth forecast to 8% for FY19.

Recollected questions Caiib HR elective

Recollected questions of HR elective (16/12/18. Motivation theories, QC, TQM, Benchmarking, Six sigma, HRP, Career planning, Job analysis, job evaluation, performance appraisal, f w Taylor scientific theory, Elton mayo HR theory, leadership styles, change management, knowledge management, training & development, trade union, labour welfare measures act. It's not only easy to crack & can score very good marks which helps for aggregate purpose too. All the best.

Current Affairs on 18.12.2018

Today's Headlines from www:

*Economic Times*

📝 Sebi lays down more robust risk management framework for equity derivatives

📝 D.light raises US$41 million to finance its solar and appliance business

📝 NHAI to miss its target by 33-37% for the year: ICRA

📝 Free pharma samples come under GST lens

📝 E-commerce share in India's FMCG retail sales triples in 2 years: Nielsen

📝 Bank of Baroda to shut three African branches by June

📝 5G spectrum auction in August 2019

*Business Standard*

📝 Govt confident of crossing disinvestment target, hopes to garner Rs 850 bn

📝 'Freight blocks' are the next growth engine for Indian Railways

📝 NBFCs stare at valuation hurdle, IPOs in pipeline may see tepid interest

📝 Cement companies on a capacity expansion spree; price rise uncertain

📝 Croma gets more social with brand, focuses on driving consumers to stores

📝 Fossil Group expands range of smart watches, launches 7 products in India

📝 IAF goes green, plans to fly biofuel-powered An-32 transport aircraft

*Financial Express*

📝 Government total liabilities rose to Rs 82.03 lakh crore in September quarter

📝 ISRO all set to launch GSAT-7A onboard GSLV-F11 on December 19

📝 Centre seeks RBI inputs for merger of public sector banks

📝 Max India promoters decide not to convert warrants into shares

📝 Google plans $1 billion office in New York, after Apple’s mega campus in Texas

📝 Commerce and industry ministry working on new e-commerce policy

📝 Industrial growth to leverage steel industry

*Mint*

📝 Govt to amend laws to allow banks, telecom firms to use Aadhaar

📝 Byju’s gets $540 million in funding at $3.6 billion valuation

📝 StanChart sells PE portfolio for $1 bn to Intermediate’s arm

📝 Quikr acquires real-estate platform India Property

📝 IL&FS puts road assets on the block

📝 Boeing buying stake in Embraer operations for $4.2 billion

📝 ABB sells power grids to Hitachi in $11 billion deal.

Caiib rural banking recollected

Rural banking elective.
Case study numerical 1.BKCC CALCULATION.
2.DSCR PROBLEM
3.NPV AND BCR NUMERICALS
4.PRIORITY SECTOR CASE STUDY
5.PMSBY APY AND PAYG CASE STUDIES
6.FARMER DOUBLE INCOME 2022 CASE STUDY
7.FARMER DEBT AND MFI CASE STUDY

Caiib Risk management recollected questions on 16.12.2018

Caiib Risk management recollected


Chief risk officer duty,reporting,appointmemt
Leverage ratio numerical
Operational risk
Pcr
Firb credit risk
Rsca operstional risk
Pilar 3 disclosure norms period
Rwas calculation

Numerical from BVP was also there,
Ques Obejective from PD ,EAD ,LGD
Market credit and operational risk theory based,


Which method we use for calculation of capital for credit operational and market risk
Case beta factor for agency services,
Icaap come under which piller,
CRO function
Reputation risk systematic risk come under

CAIIB IT Recollected todays exam

CAIIB IT Recollected

Questions asked in Morning Shift:
1. SDLC phase and definition
2. Normalization definition
3. Threats and attacks in network.
4.Routers/Switch/Firewall
5. Honey Pot
6. Biometrics.
7. Disaster avoidance.
8. Phases of CMM.
9. SQL query commands.
10. DDL/DML
11. NEFT/RTGS/FEDWIRE
12.SLA Negotiation
13. Purging of data.
14. Artificial Intelligence
15. Spamming/Eavesdropping/Phishing
16.Digital Signature
17. IDEA encryption
18. RAID
19.Generalized Audit Software
20. Virtual Classroom concept
21. Web SAFARI
22. Strategic Information
23. Fibre Optic cables.
24. Blooms Taxonomy
25. OLAP
26.Deferred Payment System
27.SFMS
28. Floor Limit ??
29. Software Escrow Management?
30. Types of cards?
31. Call Centre Benchmarks?
32. Hash Function used in Digital Signature?
33. SCORM benifit?
34. Characteristics of BHIM ?
35. Rupay Cards used in ?

CAIIB RETAIL TODAY'S RECOLLCTED QUESTIONS (16.12.2018)

CAIIB RETAIL TODAY'S RECOLLECTED QUESTIONS (16.12.2018)

1.CASE STUDY from fair practice code
2. SARFASEI related 5 to 6 questions
3.CASE STUDY gold scheme launched by GOI
4..CASE STUDY on Credit card
5.Bcsbi 5-9 ques
6.Neft settlemnt batches
7.Credit card numerical
8.Education loan casr study
9.Housing loan case studiees 2
10.Pmay one case study
11.Gold monetization scheme one case study
12.Case Study on Gold Scheme launched by GOI
13.Case Study on Education loan
14.Case Study on Housing loan
15.Case Study on PMAY
16.Case Study on Gold monetization scheme

17.Pari passu charge
Same property mortage to 2 banks on different dates
Mortage refers to which law?
Responsiveness, empathy, assurance 1 case study..
Sec 24B maximum exemption

Case studies

Credit card
Housing loan case study
Aur horizontal vertical ka case study
Bcsbi ka case study
Gold loan ka case study
Misc qstn
Emi  vehicle loan ki qstn
Onroad price 9.5lac
Roi & margin 10%
Invoice value 8lac calculate emi
First mobile atm
First talking atm for blind person

Case study on education loan, bcsbi, car loan, lok adalat limit, drt , core augmented potential product, emi calculation, brown label atm. Etc

Current Affairs on 16.12.2018

Today's Headlines from www:

*Economic Times*

📝 Air India Pilots suggest expansion of network to make it profitable

📝 SC order does not impact 31.1% stake sale to IHH Healthcare: Fortis

📝 Jawa opens two outlets in Pune, first in India after re-entry

📝 Ecommerce companies top digital advertisement spend charts

📝 Merger of BoB, Dena bank and Vijaya bank unwarranted: AIBEA

📝 Mukesh Ambani's Reliance Jio in talks with US handset company Flex for smartphone production

📝 Northeast telecom connectivity uncertain as DoT, BSNL differ

*Business Standard*

📝 Start-ups to be invited to tap into Rs 153-billion govt e-marketplace

📝 OMCs look to tap 120 million customers via WhatsApp for LPG services

📝 Hospital sector profits dragged by GST, stiff regulatory action: Icra

📝 Co-working firms, non-IT companies emerge as major office space occupiers

📝 Micro lenders' net interest margins to face pressure over competition: KPMG

📝 Traders, MSMEs saw 3.5 mn job losses due to note ban, GST, other factors

📝 Govt will focus more on public debt management in coming years: DEA secy

📝 India's CDAC, France's Atos sign Rs 4.5-bn deal for supercomputer network

*Financial Express*

📝 Oppo opens R&D centre in Hyderabad, largest outside China

📝 Elgi Equipments aims 2nd spot in global air compressor market by 2027

📝 Airtel board to meet next week to consider fund raising options

📝 Apple to update iPhones in China to avoid ban

📝 Global stock markets likely to strengthen in next 6 months: UBS

*Mint*

📝 Apple to roll out new Snoopy, Peanuts cartoon series

📝 Pokémon Go maker is seeking a $3.9 billion valuation

📝 RBI’s solution for MSME loan woes: Public credit registry

📝 NGT clears way for reopening Sterlite copper smelter; Tamil Nadu govt to move SC.

Caiib Retail mutual funds

Retail Banking






MUTUAL FUND - CONCEPT, STRUCTURE AND TYPES






Mutual Fund is an investment plan wherein MF pools investors
money to invest in pre-determined goals for capital appreciation.






Benefits of Mutual Funds:

✅· It's safe

✅· No need to
stay updated with market movements

✅· Experts
manages the investments

✅· Tax saving
under section 80(c)

✅· Investors can
invest in any investment option.






➡Structure of a Mutual Fund:

i) Sponsor (Promoter)

ii)Trustees

iii) Asset Management Company

iv) Custodian

v) R & T Agent

vi) Distributors

i) Sponsor:






➡Sponsor is the promoter of mutual
fund and get MF registered with SEBI. Sponsor forms a trust and appoints board
of trustees.






➡Pre-requisites of a sponsor:

✅· Minimum 40%
shareholding in AMC (Asset Management Company)






✅· Must have
positive net worth in last 5 years






✅· Should be in
financial services sector during past years from the date of registration






➡ii) Trust:

Trust is the owner of mutual fund. It protects the investors
money. Trust acts as a watchdog and keeps an eye on investors money. There
should be at least 4 trustees and 2/3 of the trustees should be independent.
Trust signs trust deed with Sponsor






➡iii) Asset Management Company:

ASM pools and invests investor money in pre-stated objective for
capital appreciation. In India AMC should be a private limited company. Net
worth should be at least 10cr at all times At least 50% directors should be
independent.






➡iv) Custodian:

Custodian is appointed by Trust and it has the custody of assets
of Mutual Fund. Sponsor and custodian can never be same Custodian should be
registered with SEBI.






➡v) Registrar and Transfer agents
(RTA):

Maintains investors records and handles investors documents.

It's not compulsory to appoint an RTA.

Broad Categories of Mutual Funds Open Ended Funds

These funds have no fixed corpus and period. Such fund
continuously offer units for sale and is ready to buy back the units
surrendered.






In other words, investors are free to buy from, or sell to, the
trust any number of units at any point of time at prices which are linked to
the net asset value (NAV) of the units.






➡Close Ended Funds:






In case of these funds, subscriptions from the investors are
collected during a specified time period and have a fixed corpus. Not a cannot
redeem their units till the specified maturity date. However, to provide
liquidity these are listed on the stock exchange and the investors can purchase
and sell through the brokers at the market price without any difficulty. It may
be noted that Unit Trust of India was the first mutual fund started in India as
early as 1964. Later, LIC, GIC and some nationalised banks also launched their
mutual funds with high degree of success. However, during post liberalisation
era, many private sector mutual funds have entered the fray. To mention a few.
these are: Birla Sun life, HDFC, HSBC, ICICI prudential, DSP Merrill Lynch, DBS
chola mutual Fund.

Major Types of Funds:






➡1) Equity Funds:

Equity Funds are considered to be the more risky funds as
compared to other fund types, but they also provide higher returns than other
funds. It is advisable that an investor looking to invest in an equity fund
should invest for long term i.e. for 3 years or more. There are different types
of Equity funds each falling into different risk bracket.






➡2) Debt/Income Funds :

Funds that invest in medium to long -term debt instruments
issued by private companies, banks , financial institution, government and
other entities belonging to various sector ( like infrastructure companies
etc.) are known as Debt /Income Funds. Debt funds are low risk profile funds
that seek to generate fixed current income (and not capital appreciation) to
investors. In order to ensure regular income to investors, Debt (or income)
funds distribute large fraction of their surplus to investors. Although debt
securities are generally less risky than equates, they are subject to credit
risk (risk to default) by the issuer at the time or interest or principal
payment. To minimize the risk of default, debt funds usually invest in
securities from issuers who are rated by credit rating agencies and are
considered to be of "Investment Grade ". Debt funds that target high
return are more risky.






➡3) Gilt Funds:

Also known as Government Securities in India, Gilt Funds invest
in government papers (named dated securities) having medium to long term
maturity period, issued by the Government of India , these investments have
little credit risk (risk of default) and provide safety of principal to the
investors

. However, like all debt funds, gilt funds too are exposed to
interest rate risk. Interest rates and prices of debt securities are inversely
related and any change in the interest rates results in a change in the NAV of
debt/ gilt funds in an opposite direction.






➡4) Money Market/Liquid Funds:

Money market /liquid funds invest in short -term (maturing
within one year) interest bearing debt instrument. These securities are highly
liquid and provide safety of investment, thus making investment option when
compared with other mutual /liquid funds are exposed to the interest rate risk.
The typical investment option for liquid funds include Treasury Bills (issued
by government), commercial papers (issued by companies) and certificates of
deposit (issued by banks).






➡5) Hybrid Funds:

As the name suggests, hybrid funds are those funds whose
portfolio includes a blend of equities, debts and money market securities.
Hybrid funds have an equal proportion of debt and equity in their portfolio.






➡6) Commodity Funds:

Those funds that focus on investing in different commodities
(like metals, food grains. crude oil etc.) or commodity companies or commodity
futures commodity are termed as commodity funds. A commodity fund that invests
in a single commodity or a group of commodities is a specialized commodity fund
and a commodity fund that invests in all available commodities is a diversified
commodity fund and bears less risk than a specialized commodity fund. “Precious
Metals Fund” and Gold Funds (that invest in gold, gold futures or shares of
gold mines) are common example of commodity funds.






➡7) Real Estate Funds:

Funds that invest directly in real estate or lend to real estate
developers or invest in shares /securitized assets of housing finance
companies, are known as specialized Real Estate funds. The objective of these funds
may be generate regular income or investors or capital appreciation.






➡8) Exchange Traded Funds (ETF):

Exchange traded funds provided investors with combined benefits
of a closed -end and an open -end mutual fund. Exchange traded funds follow
stock market indices and are traded on stock exchange like a single stock at
index linked prices. The biggest advantage offered by these funds is that they
offer diversification, flexibility of holding a single share (tradable at index
linked prices) at the same time. Recently introduced in India, these funds are
quite popular abroad.






➡9) Fund of funds:

Mutual funds that do not invest in financial or physical, but do
invest in other mutual fund schemes offered by different AMCs, are known as
fund of funds. Fund of Funds maintain a portfolio comprising of units of other
mutual fund scheme, just like conventional mutual funds maintain a portfolio
comprising of equity /debt money market instrument or non-financial assets.
Fund of Funds provide investor with an added advantage of diversifying into
different mutual fund schemes with even a small amount of investment, which
further helps in diversifying of risks. However, the expenses of fund of funds
are quite high on account of compounding expenses of investments into different
mutual fund schemes

GKD*

Caiib retail reverse mortgage

CAIIB RETAIL::



Reverse Mortgage (RML) Numerical Questions :

Value of the property - Rs. 50,00,000

Loan Amount - 80%

Loan Tenor - 15 yea rs

Rate of interest - 10%

Calculate Monthly Installment

a. 9156

b. 9651

c. 9516

d. 9165

Ans - b

Here,

PV = 5000000

LTVR = 80/100 = 0.8

n = 15 * 12 = 180

I = 10/(12*100) = 10/1200 = 0.008333

= (5000000*0.8*0.008333)/((1+0.008333)^180-1)

= Rs. 9651

So, the Monthly installment = Rs. 9651

Retail Banking important

Retail Banking- Deduction of Interest on Housing Loan – Sec 24b



Applicable for financial year 2015-16 and 2016-17

Section 24 of the income tax act provides deduction in respect of home loan interest.

Important points



1) Interest on housing loan is allowable as deduction on accrual basis not on paid basis (even if account books are kept on cash basis) if capital is borrowed for the purpose of purchase, construction, repair, renewal or reconstruction of the house property. Deduction can be claimed for two or more housing loans.



2)Interest includes service fees, brokerage, commission, prepayment charges etc.



3)Interest/penalty on unpaid interest shall not be allowed as deduction.



4)Deduction shall be allowed irrespective of the nature of loan whether it is housing loan or personal loan from any person/institution.



5) If a person instead of raising a loan from a third party pays sale price to the seller in instalments along with interest than such interest is also allowable.



6) Interest on borrowed money which is payable outside India shall not be allowed as deduction under section 24(b), unless the tax on the same has been paid or deducted at source and in respect of which there is no person in India, who may be treated as an agent of the recipient for such purpose.



7) For claiming deduction under this section, assessee must be the owner or deemed owner of the house property and loan shall be in the assessee name.



Maximum Limit of deduction under section 24b



These limits of deduction is applicable assessee wise and not property wise. Therefore if an assessee owns two or more house property then the total deduction for that assessee remain same.



1) In Let Out Property/Deemed to be Let Out – No maximum limit



2) Self Occupied House (SOP) – Rs. 2,00,000. (1,50,000 for A.y 2014-15 and before)

In the following cases the above limit of Rs 2,00,000 for SOP shall be reduced to Rs. 30,000



– Loan borrowed before 01-04-1999 for any purpose related to house property.



– Loan borrowed after 01-04-1999 for any purpose other than construction or acquisition.



– If construction/acquisition is not completed within 5 years from the end of the financial year (3 years till financial year 2015-16) in which capital was borrowed. For example, a loan is obtained for construction/acquisition on 28 Oct 2011 then the deduction limit should reduced to Rs 30,000 if the construction / acquisition completes after 31 March 2017.



Interest for pre construction/acquisition period Interest for pre construction/acquisition period is allowable in 5 equal instalment beginning from the year of completion of house property. This deduction is not allowable if the loan is utilized for repairs, renewal or reconstruction.



Pre Construction/Acquisition period starts from the date of borrowing and ends on the last day of preceding Financial Year in which the construction is completed. For example, if house property is completed on 21st March 2012 then the deduction is allowed from Financial Year 2011-2012 to 2015-16.



Example

Loan Taken on 01-05-2006 of Rs. 5,00,000

Construction End on 07-09-2012.

Pre Construction/Acquisition Period = 01-05-2006 to 31-03-2012

Pre Construction/Acquisition Interest = Rs 3,55,000 ( Rs 5,00,000*71 Months*1%)



Pre Construction/Acquisition Interest Deduction for Financial Year 2012-13 to 2016-17 assuming let out property or deemed to be let out = Rs 71,000 per year ( 3,55,000/5 )



Pre Construction/Acquisition Interest Deduction for Financial Year 2012-13 to 2016-17 assuming SOP = Rs 71,000 per year ( 355000/5 ) (as the construction is completed within 5 years from the end of the financial year in which capital was borrowed)

Interest from 01-04-2012 to 31-03-2013 shall be allowed as deduction in 2012-13 as current year’s interest. Interest from 01-04-2012 to 07-09-2012 shall not be considered as Pre Acquisition/Construction Period.



Note: – If a property is partly SOP and partly let out then also the limit of Rs 2,00,000/30,000 shall be available for SOP portion and there is no limit of deduction for let out portion even if the construction is completed after 3 years.

Caiib retail

Dear All CAIIB members

Now it’s the time for last exam. Easy and scoring elective exam. Especially retail banking .I have shared Recollected questions Kindly go though it 1st.

Next 1st 100 pages easiest theory in Macmillan book read it. I think 1 hr enough to complete it.

Next concentrate on Credit cards especially important. Go through all the theory part.

Most import module is D other issues related to banking ..concentrate on it.

Securitization, Mortgage base securities Reverse mortagage, e banking, SARFASAI,DRT,Masala Bonds

HOUSE FINANCE AND TAX PLANNING,Priority of charge and Tiltle to properties,PROPAGATE, CAPITAL GAINS,REGISTRATION OF DOCUMENTS,FSI Calculations.

LOANS RELATED CASE STUIDES ESPECIALYY CAR,EL,HL…

Finally latest updates very very very important mostly BHIM ,PMAY, CERSAI,CKYC, UPI,AEPS MOBILE BANKING……..



All the best

Srinivas Kante

INTERNATIONAL BANKING RECOLLECTED QUESTIONS

INTERNATIONAL BANKING RECOLLECTED QUESTIONS

bullet repayment

IMF

negative pledge

bahamas routing offshore known as

ratio covenants

value at risk

urc 522

restoration of confidence in intt trade and invstment

sterling denominated foreign bonds

world bank group

leveraged buy out

floating rate notes

risk collaps of barings bank

oldest credit rating agency

straight debt

numericals asked frm call option, dealer, bill negotiation n crystalization, post n pre shipment

1)Oldest rating agency

2)what is IMF

3)5 marks case study on residential status

4)5 marks case study on conversion of currency directly quoted,TT Buying or selling

5)5 marks case study on conversion indirectly quoted

6)2 questions on INCOTERMS

7)Syndication financing

8)Off sheet balance

9)IEC code

10)EEFC

11)Predecessor of World Bank

12)3 questions on LC

13)Popular Off shore location for resident and non resident

14)Euronote

15)AD is the member of....?

SNRR a/c

1)Leveraged buy outs

2)Management buy out

3)correspondent banking

4)balance of payment

5)A case study on NRI NRO PIO

6)ADR GDR level movement

7)syndication definition

8)World Bank

9)a case study on ECGC

10)Offshore banking

11)Export Import duration after shipment

12)Letter of credit theory

13)A case study on parties of LC

14)A Case study on cross rate transaction

15)A case study on margin selling or buying

16)Authorised Dealer

17)IMF 2 questions

18)Theoretical case study on ECB

19)Straddle

20)URR522

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