Risk in financial services recollected questions Sep 2020

 

Risk in financial services recollected questions Sep 2020

1.BPV and duration easy questions

2.Risk definition

3.Some questions related to which kind of risk occurs in the said event like settlement risk,counterparty risk,liquidity,basis etc...

4.Avoid,Share,Mitigation,Retention question with example

5.This time problems were mostly asked from foreign exchange ...spot,options ,futures

 6.Collar qn

7.Corporate governance

I personally feel that you have to completely go through the textbook rather than short notes or shortcuts..each and every minute parts are important...

109 WAYS OF GETTING TO THE TOP

 109 WAYS OF GETTING TO THE TOP

COURTESY TOWARDS ALL:-
We show courtesy willingly and automatically to strangers but very little courtesy to people with whom we have to work day in and day out. We often forget their names. We often interrupt the conversation of people who work for us or half listen to them. People appreciate courtesy from the boss, and they are quick to notice the lack of it too.
HELP OTHERS:-
You have to know how to criticize people properly. The purpose of criticism is not to punish people or to make them feel bad. Its purpose is to make them understand what they did wrong and to make them anxious to do better next time. Sometimes it is best to soften your criticism with praise. Criticism is a lot easier to swallow when there is some praise mixed with it.
Before you criticize, give a person a chance to criticize himself. If he is aware of his shortcomings, he might prefer to admit them himself rater than have you point them out, and when you criticize anyone, do not act superior. Talk as one sinner to another. We all make mistakes. Soften your criticism. Use it to help people, not to punish them.
DO NOT SHOUT- EXPLAIN:-
Why shout at someone? “ I am disappointed.” “ You have always been such a good worker”- these surely are far better ways of telling off someone than yelling at him in heat of moment. Remember, the whole purpose of reprimanding is to improve someone, to help him not to repeat the same mistake . Shouting at someone will make him determined to make the same mistake again, if only to annoy the boss.
A PROMISE IS A PROMISE:-
People appreciate a boss who is straight and honest with them. They will never respect a clever, slippery leader who does not keep his word. If a boss is completely honest and fair, his people will be willing to put up with a lot of his shortcomings- and every boss has some.
DO UNTO OTHERS AS YOU WOULD LIKE THEM TO DO UNTO YOU:-
There are always lots of people with different and strong opinions. But they usually manage to live peacefully side by side and without any trouble. Suppose you do not agree with somebody, so what? Why be unpleasant and argue about it. Everyone has a right to his own opinions and beliefs. It is a waste of time and energy arguing to bring them to your point of view. Let them keep their point of view and you keep yours. Arguing is useless and never succeeds in winning people over. It only creates tensions.
LISTEN TO COMPLAINTS:-
When a person complaints for the first time or tenth time, listen patiently and attentively. Some times all a man really wants a little more attention. His complaint may be entirely unreasonable but do not brush it off. Nod your head and say “Is that so” The listener will be most impressed because nobody wants to think he is unreasonable especially if he is unreasonable. How often one gets excited over little matters and makes an issue out of them.. Sometimes it is best to leave things alone and not make an issue out of things unless it is absolutely essential and we just have to do it. Human beings are emotional and excitable. Give them time to cool off and to save face.
FOR A SENSE OF HUMOUR:-
A sense of humour is a fine thing. But be careful not to overdo it. Some people are sensitive and just can not take it. In such cases, humour becomes ridicule. In dealing with people it is essential to have a sense of humour. By sense of humour, we mean having a sense of proportion and the courage to smile. It is ability to take care of yourself and your problems with a grain of salt. The ability to smile at yourself and the world as well.
GIVE A GENTLE PUSH UPWARDS :-
Good boss never consider himself above his subordinates. Of course he should not let his juniors walk in and out of his office as they please, but he lets it be known that he is always available to listen to their problems and grievances. After all, if his men are unhappy, their work will suffer, the organization will suffer and inevitably, he will suffer. It is very important – particularly as a business grows larger- to keep the lines of communication open at all levels. An organization is always better off, and a lot of trouble is avoided if ideas and complaints move quickly and easily in both directions.
MEN, NOT MACHINES:-
A common failing with many managers is that they often consider themselves superior to their men. They don’t appreciate their view point or make any effort to understand their hopes, fears and problems. If you treat your men like machines they will respond like machines: which means they will work just so much and no more. On the other hand, If you show your concern for them as human beings, they will feel obliged to help you and the organization. Remember a manager only achieves his objectives through people. That’s why we say that dealing with people- their knowledge, their peculiarities, their temper- is one of his main jobs. Management is human relations.
NO MISTAKES, NO INITIATIVE:-
When something is going wrong, investigate, ask, don’t accuse. Give the men a chance to tell his side of story. Like this, he will be far more willing to recognize and accept responsibility for his mistakes. Try to avoid mistakes happening at all. It takes far less time and effort to prevent mistakes from happening than it does to correct them.
PROBLEMS WILL OCCUR- :-
Problems will occur especially when you are dealing with people. Therefore, a good manager should make a habit of acquainting himself the thoughts and ideas of the people who work for him. He should encourage them to say what they think. In this way, the management will have continuous and accurate information on attitude and opinions of its employees.
DISAGREE WITHOUT ANGER:-
If you do this, and do this sincerely, people won’t be offended at all when you don’t agree with them. It is an open minded approach and encourages others to be open minded too. You will be surprised how often most of us tend to fly off the handle. But this is something which we must try to avoid at all costs. Anything done in anger will always lead to bad results. Keep your personal feelings and prejudices right out of picture that is the secret of getting along with people successfully and takes a lot of self control. The fellow who is good at controlling others must first learn to control himself.
There is a tactful method of disagreeing with someone. Start out by asking the person to explain his views fully. Listen to his views. Agree wherever you possibly can. And than when you cannot convince yourself in front him that he is right, point out why. Show him why you can not go along completely with him on what he says and than ask him to consider your point of view. Surely, this is an effective way of getting people to come over to your opinion.
MONOTONY BREEDS LACK OF INTEREST:-
Doing the same job day in day out doesn’t necessarily mean that it is most efficient way of getting things done. People aren’t like machines. Many of them get tired of doing the same thing over and over again with the result that they do it badly. Good manager is to take the boredom away from a job and make it more interesting. He can delegate, ask for suggestions, contact people and get people to use their brains. All this helps to take away boredom.
WHY ARGUE? TRY TO UNDERSTAND:-
Have you noticed that the people who are really smart rarely get into arguments. They have learnt that arguments are a complete waste of time . The best way of settling differences is to show other fellow that you understand his point of view. Stress the point on which you agree with him and than quietly and calmly point out where you can’t agree. Never flatly contradict him. Even if you know he is wrong, never act as if he is obviously ought to agree with you. Never, get into an argument. Even with the best lawyer in the world, you won’t be able to convince him that black is not white if he does not want to be convinced.
BE BRAVE- FACE UP TO MISTAKES:-
When we make a mistake, most of us are scared and try to wriggle out. But why not admit a mistake? We can’t be right all the time: A man who is right only 60 per cent of time can be a tremendous success- if he is quick to correct his mistakes the rest of time. If there is no mistake there is no initiative. Not to admit a mistake is plain foolishness. You’d be surprised but people respect a man who is quite open about his own mistakes.
MEET THE BOYS FACE TO FACE:-
That’s what they do in Japan, and that’s why they are so successful. They settle things face to face and on spot. No separate offices. No long memos. To obtain the best results when dealing with people, do it in person. If you can’t see a man in person, telephone him. A phone call is more personal and persuasive than a letter.
THE WISE BOSS IS A FRIEND:-
The main function of a leader is to help his people to produce more. That surely is main job of every boss- to help his people to do a better job: through guidance, interest and appreciation. The boss’s efficiency is not measured by the work he does himself, but by what his people have done. That’s why it’s so essential for a boss to know how to handle people and get them to do their best.
REMAIN LEVEL- HEADED WHEN THINGS GO WRONG:-
That’s what you will have to do, when things go wrong. There is always temptation to find out who is responsible and give him a piece of your mind. But this doesn’t do much good, except to relieve your own feelings and aggravate somebody else’s. When something goes wrong, hold your fire. First find out why it happened. When people do poor work, there is usually a reason. When you find cause, attack the reason, not the man himself.
CAREFUL LISTENING ELIMINATES MISUNDERSTANDINGS:-
Most people are afraid to admit that they do not understand. As a result you don’t even realize that they haven’t got your message until everything is all messed up. One way to be sure that your meaning has gone home is to ask your listener to repeat the message back to you in his own words. Like that, you can be sure that you are both on the right wavelength and that your listener understand your message and not his own interpretation of it. Be more careful with your instructions. Check back in early stages of the job to make absolutely sure that it’s going properly.
UNDERSTAND YOUR CASE:-
I MAY BE WRONG, BUT--,
DON’T YOU THINK THAT--,
ISN’T IT LIKELY THAT--,
ONE WAY TO LOOK AT IT IS THIS…,
IT’S POSSIBLE THAT…
These phrases are most effective way of getting your ideas accepted. Soft pedal your opinions. Use phrases like these and you will find people more willing to listen and less quick to bristle. Even when you know you are right, it’s important to show that you have an open mind and this encourages others to accept your decision, but there is no law which says that people have to agree with your thinking.
BE MILLITANT, BUT ONLY AS A LAST RESORT:-
For emergency use only- try force. If we seem to talk a lot about a friendly and constructive approach, it’s because we believe that we can always get better work out of people by making them want to do good work, than by trying to force it out of them. Some times, however, this approach doesn’t seem to work. In such cases, take the matter up bluntly and directly with the person in question. If a man doesn’t respond to a constructive approach, face the issue and find out why. Try to straighten him out without resorting to punishment and penalties. Failing that, get rid of him as soon as you can. You’ll have a healthier organization if you do so.
ENCOURAGE INITIATIVE AND TOLERATE ERRORS:-
All bosses profess to encourage initiative among their employees. But what happens when someone does take initiative and make a blunder. Do you deluge him with blame and criticism or do you take as much of the responsibility as possible on yourself and try to soften the blow. This fear of taking initiative and then being criticized for being wrong is the greatest initiative killer of all. The manager who wants to encourage initiative among his assistants has to expect and be tolerant of errors. Otherwise, many people would prefer to do nothing- they’d rather pass the buck than risk being wrong.
A COMPANY LIKE A PUMP, REQUIRES THE RIGHT PRESSURE:-
One of the problems of leadership is to know what degree of pressure to apply: to what extent should the boss repeatedly control and check his subordinates. Pressure is not necessarily bad but excessive pressure certainly is. A manager should be able to gauge how much pressure to apply on his subordinates.
REMEMBER, THE OBJECTIVE CONTROLS THE MANAGER:-
Under a system of management by objectives, it is the manager who controls his own performance, and not his boss. The manager’s task is made easy because, he has actively participated and given his agreement and taken responsibility for objectives of his unit. Once the objectives are settled the manager should be allowed to get on with the job of achieving them any manner he thinks best, but, of course, within the general framework of rules of an organization.
WORK IS FINE, BUT RESULTS ARE BETTER:-
The focus of the executive must be always being on contribution. The focus of his efforts should be on results rather than work. Most executives are flooded with papers. They have no time to think and plan. They are all too occupied just working, but not thinking about the results of that work.
An all round squeeze produces good results:-
It is best to give managers a tight budget and minimum number of staff. They will raise hell to start off with, but under pressure they learn to simplify and than produce much more and at lower cost.
ANTICIPATION IS BETTER THAN CRISES:-
The organization which accomplishes the most is usually a quit, rather boring one where there is never a crisis because everything has been anticipated and made into a routine. This is a far better atmosphere for an executive to get down to his job which he thinks out plans for the future and also to develop his subordinates.
DECENTRALISE AND PROFIT:-
Give the man on the spot as much authority as you possibly can. Experience has proved time and again that not only will he live up your trust but that the work will be done far better, and you will hardly ever be let down.
ACCENTUATE THE POSITIVE:-
The secret of effective leadership is to concentrate on and develop the strength of an individual- his strong points. Individual have many facets but for average individual there is usually only one area where he might be very capable. Concentrate on that area and forget about his weaknesses because if he is normal person he is bound to have them. If a man has no weaknesses, it may well be that he has strong points either and will nothing more than a mediocrity. All well –known leaders have their failings, but important thing- and this is what really matters- are that these people produce results.
PRESERVANCE ALWAYS PAYS:-
One is bound to succeed in the end if one keeps on at it! It doesn’t matter how many times you fail. Remember what happened to Robert Bruce of Scotland. It is not the brilliant fellow that gets on in the long run, but the fellow that has the capacity and the patience for going at it again and again and not giving up. Who was it who said that, Genius is one percent inspiration and ninety nine percent perspiration.
THE WELFARE OF YOUR STAFF COMES FIRST – ALWAYS.
The Organization of the armed forces of most countries can tell us a great deal about man management. Why is it that soldiers follow their officers through a hail of shrapnel and bullets? It is not because they are especially well paid It is not because they will be punished if they malinger. It is because they the way in which discipline has been built up the armed forces. There officers see to it that their man are properly settled fed before they attend to their own needs; they see that they write home to their families; they try to help them to study so that they can improve their position. An officer makes it his business to spend time and effort over welfare and health of his men. This could apply equally in civilian life too. Let your men feel that you really are concerned about their welfare. If you do that you can be sure that they in their turn, will do everything possible to be loyal to you and the organization.
A GOOD TIP PAYS OFF IN BUSINESS:-
In some organizations a suggestion is looked upon as a slur on the manager. The manager thinks that people will ask why he did not think out this suggestion himself. This whole attitude is, of course, entirely wrong. Every employee must be actively encouraged to make suggestions for improvement and he must know that his suggestions will be carefully considered.
THE RIGHT TOUCH:-
And it was just a little touch. But he’ll think of her for days on end. That’s all very well, but you’ll be astonished at what a big difference such little touches make in one’s day to day life. If one of your men looks unwell, ask him about it. If he takes leave to look after his ill wife, find out how she is when he comes back. If he walks with a limp, enquire how it happened. Ask about his daughter’s progress at school. Good human relations do not normally take up much effort But how very often otherwise experienced and clever managers entirely ignore such an approach.
DOWN WITH SYCOPHANTS:-
One of the biggest dangers for the average executive is the yes -man type subordinates: the subordinate who is always buttering up the boss. A good executive needs men around him who have the strength to give dissenting opinions. He must be able to see through the yes-man and shoe-licker as quickly as possible. Otherwise they are bound to land him in trouble. It is so easy for a busy executive to jump to wrong conclusions. That is why it is important for an executive to have independent thinking men around him- so that they can correct him
ONLY FATHER CHRISTMAS CAN GRANT WISHES:-
A good executive must have courage to say ‘no’. And this could be one of his most difficult tasks, because he is under enormous pressure. Everyone always wants something from him- his friends, his relations, and people in high positions. He will have to exercise all his self-control to resist such requests.
DO NOT ACCUSE- INVESTIGATE:-
When you sense that something is going wrong, get to it straight away. If you deal with problems while they are still small, the chances are you eliminate the problem from becoming big. Root out misinformation and poor attitudes before they take hold.
Most problems are caused by lack of proper communication. People are often disturbed because they do not have the facts, so they do not understand the real situation. The faster you put these false impressions right, the better off will you be. The thing to do is to nip trouble in the bud before it builds up and become serious. There are enough real grievances in the world. So there’s no point in people getting upset over imaginary problems that can be put right straight away if you give them the true facts.
HAPPY AT HOME, BETTER RESULTS:-
People tend to work the way they feel. Their productivity depends to a large extent on their frame of mind. A good supervisor gets to be an expert in spotting people who have trouble at home. He knows its lot smarter to help a man get his personal problems off his chest than to let him spoil a day’s work. Under such circumstances, scolding the person and tearing a strip off him can do only harm.
EVERYONE LOVES RECOGNITION:-
Everyone has an ego, a desire for recognition and craving for attention. Why-goodness knows. Maybe it’s caused by some overactive glands but this is something which has to be recognized if you want to be successful in handling people. If people can get attention by doing something constructive, they’ll get it by doing something destructive. A really good supervisor simply must realize this.
MAKE YOUR INSTRUCTIONS CRYSTAL CLEAR:-
You’ll be surprised how often instructions are misunderstood. ‘I thought you said that’ or ‘I didn’t realize this is what you wanted’. These phrases are used again and again and things are always going wrong. If you want your instructions to be properly understood, you have two jobs to do: one is to explain yourself simply and clearly, and the other is to go out of your way to make certain that you are correctly understood. If you don’t do this, things are bound to go wrong.
TALK STRAIGHT:-
No matter how unpleasant the task, be direct. Don’t let anyone get the idea that you are going behind his back on anything. Put your cards on the table and keep them there in plain straight. Don’t avoid questions, hide facts, or try to evade an issue by clever tricks. Avoid cleverness as you would the plough; otherwise people won’t trust you. As the boss, the best possible impression you can give your staff is that you are sincere and fair. The fellow who thinks he can fool people indefinitely is fooling himself.
IN MOMENT OF CRISIS REMAIN COOL:-
When somebody is dead wrong, there’s always temptation to bang your fist down and tell him so on in no uncertain terms. But it’s not good business- not if you want to retain his goodwill and win real co-operation. There are critical moments in dealing with people. If you disagree with someone, do so gently. The more aroused he becomes, the more determinedly he’ll stick to his own opinion. If you adopt an open-minded approach and encourage people to be open-minded too, it gives you an excellent chance of winning the other person over.
SLEEP OVER IT:-
Let’s admit it- dealing with people can be an exasperating and frustrating business. Every once in a while we are bound to get discouraged and ready to throw in sponge. But whenever things look bad and you find yourself discouraged and resentful-stop. Look at what’s wrong. If you can’t see the good side, drop the matter temporarily and get a good night’s sleep first. Don’t get excited and worried by difficulties.
HANDLING PEOPLECORRECTLY IS AN ART:-
People get their most of impressions through eyes; not their ears. If you want to sell an idea- or even a sense of discipline to people who work for you- you have to set a personal example. The minute you try to sell them something you don’t really believe in, something you don’t practice yourself, you have got a job on your hands. There’s no question about it. If you want results you have surely got to set an example yourself.
THROUGH MISTAKES TO SUCCESS:-
That’s really what experience means. A fellow might work in the same organization for say 20 years, but it might be one year repeated 20 times. He learns nothing. But with another fellow, every year is an additional year’s learning. Every mistake he makes, he notes down, thinks about it and thinks again about it. Why did the things go wrong? How could it have been prevented? If you do this often enough, there’s no stopping you. The sky is the limit. Mistakes can be your most effective teacher.
*******************

INTERNATIONAL TRADE FINANCE recollected on 20.09.2020

 INTERNATIONAL TRADE FINANCE recollected on 20.09.2020

1.B/L ladding types

2.Trade blocks types

3.Forex brokers who approach accreditation

4.Parties in Channel financing

5.Bill of entry submission in  case of  Import  D/A

6.ECGC (ECB-WTPC) 2 MARKS QUESTION

7.Exim bank working group parties

8. Channel financing parties

9.forign trade polices 2015-2020

10.Realisation of export bills 6 mark 2m*3

11.Packing credit study 8 marks  2m*4

12. Bank Guarantee Types

13. Limitation clause in BG 4marks

14.Status holder export based question

15.LC/BG comparison based case study

16.AD bank allowing payment for  export of software question

17. Airway bill characters

Most of the questions out of syllabus .conceptual clarity important 

Certified credit professional recollected questions on 20.09.2020

 Today's 20.09.2020 ccp recollected questions

Mudra expansion

Crilic

CP case study 5 marks

DDAS

PCR

MCLR conditions

Computation of cash flow

Swot analysis

SMA0 conditions

Sma2

Pmjdy revised age limit

5 marks dscr problem

Bep 5marks

5 working capital problem

5 marks pvv irr

20.09.2020 IT security recollected

 20.09.2020  IT security recollected

 Read audit module

In digital signatures around 10 question

Management information system

Data warehousing 

Switching techniques 

IT act 2000

Hard ware input output devices

Information system for bankers recollected questions 20.09.2020

 Information system for bankers recollected questions 20.09.2020

 IS audit 

Anneutation 

Data integrity

Input/output devises 

Gateway 

Router 

Digital certificate license 

CCA appointed by

False negative 

Account lockout 

Firmware

Data didling 

Spoofing 

Intrusion prevention

Chat

Digital signatures- abt CCA

qualification of presiding officer

Cyat

Main components of IS policy

Bhim developed by?

Fully from last appendix chapter that is on IT act

Digital signatures

Hardware input output devices 

These areas u study

FULFILL YOUR DREAMS DON’T LET IT SHATTER….

 FULFILL YOUR DREAMS DON’T LET IT SHATTER….

 For some most important is money.. Others say, you are my life honey... Some say the first priority is health Others keep running for acquiring wealth.. Persons are many, thoughts are many.... What about you, do you believe in any? A mother loves her the child most Child is her life, she does not boast... But soon the child grows up & has his own life.. Relations expand with children & wife... The mother gets lonely again then Separation from child makes her insane... Emotions are good but to a certain extent.. Don't be over flooded with them should be your intent... Money, Honey, Health, Wealth, Relations.... All are important you know.. But the prime motive is to keep yourself happy, make a vow.. In this world you may have earned respect, love & fame... But when you die, people will not take much of your name.... In life you have to be strong & brave... Your name would be addressed as just 'body' while going to grave... So why fight, why argue over any matter..

Fulfill your dreams don't let it shatter... Life is short , days are few, Earn good relations old & new... Material & wealth will not accompany you Good time & good memories will certainly be with you... Everybody, everywhere seeks happiness, that’s true.. But finding & keeping it seems difficult to do.... Difficult because we think happiness is found in places where wealth bound Unaware that happiness is dwelling around... Make others happy & you will be happy too... The happiness you give away returns back to you

Do's and Don'ts of Loans and advances

 Do's and Don'ts of Loans and advances

With fast promotions and less experience most managers/ officers find it tough to handle the advances pressure of the branch. Let me tell you advances or loans which are done in pressure normally turn bad/ NPA. So its better to have thorough knowledge of advances before going for the dip. Here I present you the checklist while doing documentation or appraising loan cases and NPA Prevention-.

*1) KYC*- yes KYC is must. You must first identify the customer. It is better to approach the customer rather customer approaches you. Sometimes borrower is not selected properly he is either new customer or introduced by another stranger or middlemen. Never involve middlemen, talk to customers directly. Avoid giving multiple loans to single party/ family or a group, to minors, lunatics or insolvents. It is compulsory to complete all the KYC norms before even thinking of giving loan. For KYC the following things are to be taken care of-

a) Proof of Identity

b) Proof of residence

c) Proof of business address

d) PAN number

e) Photocopies of all these must be verified with original and also get them signed by the borrower and kept on record.

*2) Understanding Credit Cycle*- the credit cycle consist of credit opportunity -> Credit Creation -> Credit management -> Credit Completion -> Credit creation. Which ever branch you land at you will find loans in one stage or the other.

*3) RBI’s Defaulter List*- it must be confirmed from RBI’s Defaulter’s list, available on RBI’s website. Confirm that borrower/guarantors name do not appear in the defaulters list and confirmation of same must be put on record.

*4) CIBIL reports* – next step is to search the CIBIL reports of the borrower and guarantors in all loan cases and commercial CIBIL report in case of firms/ companies. CIBIL reports should be analyzed thoroughly viz. whether borrower/ guarantors availed loans from other banks or financial institutions is there any overdue amount. There should be documentary proof to satisfy these irregularities.

*5) Search CERSAI or CIBIL Mortgage site*- if mortgage of property is involved in the loan then before proceeding further search should be made on CERSAI or CIBIL Mortgage site to ascertain that there is no mortgage outstanding against the property in any other bank/ FI.

*6) Loan safety*- safety of your loan is directly related on the basis on which decision to was taken, type and quantum of credit to be given and terms and conditions of the loan. But practically no loan is safe as we can’t see what is going on in the borrowers mind. Loans with all proper documentation and all due diligence paid also goes NPA. But still you can wisely apply points mentioned in article and save a going to be NPA loan.

*7) Pre sanction Visit*- next step is to visit the residence place of borrower, place of unit and property to be mortgaged. Pre sanction visit is basically to determine the “bank-ability” and access related riskiness of the proposal. Identification of borrower and site must be ascertained beyond doubt by inquiring from neighbors and other surrounding people. The whole observations must be noted down and to be placed on the record.

*8) Assets and liabilities Reports*- assets and liabilities statements of all borrowers/ guarantors must be prepared on prescribed format mentioning full detail of assets & liabilities duly signed by borrower/ guarantor and accountant/ manager. You should also take necessary proof of asset and liabilities be taken.

*9) Balance Sheets* – in case of working capital limits 3 years balance sheets of the unit along with income tax/ Sale tax returns etc.( for higher amount get audited balance sheets) projected balance sheets of next 2 years in cases of working capital limits and for the period of loan in case of term loan is mandatory. The balance sheets must be thoroughly analyzed and sanction-able limits be assessed. You should analyze the following points in balance sheet-a) How capital or fund is raised?

b) How capital or fund is utilized?

c) Financial stability of firm.

d)Profitability?

e) Repayment capacity.

f) Expenditure analysis.

g) Sales achieved.

h) Existing loans and liabilities.

*10)Project report*- project report ( for the proposed project if term lending is required) containing details of the machinery to be acquired, price, name of suppliers, capacity utilization assumed, production , sales, projected profit and loss and balance sheets for the next 7-8 years till the proposed loan is to be paid. Project report should be analyzed and feasibility be ascertained.

*11) Credit Rating*- credit rating must be done in all the loan cases as per bank’s guidelines. Retail loans like Housing Loan, auto loan, and education loan should be done as per bank norms. Rate of interest should be fixed as per credit rating. In agriculture loans there is no need of credit rating. Credit rating should be done judiciously based on analyzing balance sheets. Always avoid sanctioning loan credit rating below 3.

*12) Legal opinion*- verification of title deed of property to be mortgaged is utmost necessary. It must be ascertained that it is original not fake, scanned copy or duplicate one. In Legal opinion revenue authority should personally verify that title deed to be mortgaged tally with the one kept with revenue records. Must get certified copy of the title deed and tally it with original Title deed. Also take certificate from advocate that certified copy tallies with the original one. Thoroughly read the legal opinion given by the advocate and observe that there is no objectionable which goes against the bank’s interest. Also obtain all the documents mentioned in the legal opinion. Here it is also important to personally verify that submitted title deed belongs to the property you visited earlier. Also make sure that SARFAESI act 2002 is applicable on the property. Certificate of change of land must be took in case unit to be financed is to be built on agriculture land.

13) Any additional limit sanctioned against same securities already charged to the bank ensure-

a) To extend charge to such limits too.

b) All concerned should be kept informed.

c) Acknowledge debt / balance conformation with the borrower.

*14) Valuation*- valuation of property to be mortgaged is to be done from valuer on banks panel. Considered value is earlier circle rate or realizable value which ever is lower. After that realizable value can be considered. For agriculture land circle rate fixed by the collector revenue for the area/ Circle. Land revenue Authority/ Tehsildar/ DM/ or any other authority for determining the valuation of land should be considered. Valuation report of the valuer must be thoroughly analyzed that it should not contain any comment which may harm the bank’s interest on later stage. The title deed, revenue numbers, area of the land must tally with deed/ legal opinion and valuation report.

*15) Filling of Appraisal note*- after verifying all the documents the appraisal note should be filled. Care should be taken that full detail should be filled and it should be complete in all respects. Appraisal should reveal whether proposal is fair banking risk. documentation forms the basis for legal relationship between bank and borrower. Following points should be taken care off:

A) Information of the borrower: name, full address, phone numbers, PAN no., date of birth and net worth and constitution should be given.

b) While processing credit processing figure out both positive and negative points on a piece of paper.

c) Now compare the proposal with circular of the bank. All circulars have checklist. Tick point by point and figure out gaps if any. Also jot the measures that you or the party needs to take to fill those gaps.

d) Get confidential reports from other bank and FI.

e) Amount of loan and purpose of loan should be given in full.

f) Constitution of account- whether account is individual/ joint/ co- borrower/ proprietorship/ partnership/ pvt ltd. Co/ ltd co.

g) Full details of his accounts with other banks, branches should be given in full detail.

h) Information of guarantors should be given in detail viz. name. address, PAN number, Date Of Birth, Phone no. , net worth etc.

i) Detail of Primary security should be given in full as related to the case e.g. if it is mortgage of property full address as mentioned in the legal opinion should be given along with date of legal opinion and valuation report and values viz. market value , realizable value and accountant/ manager with date. If hypothecation of vehicle – its RC no, date, engines no. value, date of insurance etc.

j) Similarly for additional security full detail should be given as the case may be.

k) Balance sheet figures should be given in full, preferable consisting of last 2 years audited figures, current year’s provisional figures and projected figures of next 2 years. Ratios like current ratio, debt-equity ratio etc. must be calculated and filled. Observation about balance sheet must be mentioned in the note.

l) Credit rating must be mentioned in the note and based on it rate of interest should be mentioned by quoting circular no on which it is based.

*16) Repayment*- detail of repayment mentioning amount of EMI, duration in months must be mentioned. If moratorium period allowed then it must be mentioned and also mention date of first installment.

*17) Disbursement*- in case of term loan, disbursement should be as per schedule approved by the bank. In case of housing loans disbursement should be related to actual progress in implementation of project. For that you should visit the site periodically. For any delay in project you should seek the borrower’s arguments. Also monitor costs being incurred and scrutinize receipts being produce by the borrower.

TIP- “Never disclose the date of disbursement to borrower”

*18) Role of periodic inspections*- periodical inspections enables bank to keep check on the stocks hypothecated to bank. Now what you should do in periodical inspections? –

a) Obtain basic info on the functioning of unit.

b) Do physical verification of the stock.

c) Match the stock with the stock statement given.

d) Do rough valuation of stock on MRP or market price.

e) Quality of stock hypothecated to bank. It should not be of inferior quality what is charged to bank or obsolete or rejected stock which is of no market value.

f) The bank’s name should be prominently displayed onsite the unit where goods are hypothecated to bank. E.g. *“OUR BANK , SBI bank* Board like this should be displayed outside.

g) In case of pledge- ensure that storage area is properly maintained, earthquake and flood resistant, goods are stored in a proper manner, stock audit is regularly conducted and a proper register is maintained.

h) Also note that the stocks or securities that are offered should be adequately insureand that too on continuous basis.

i) Branch should maintain a inspection register where all the findings at the site should be noted. It is a good idea to take 2-3 snapshots and paste them on register with signature of visiting officials.

j) Inspection should be done vigorously and not pre-informing the borrower and telling him to prepare tea/snack(on a lighter note). Inspection should be done without even making borrower know that you are going to visit and which date or time. Just caught the borrower red handed only then you will come to know how he behaves and looks in real life.

k) In case if housing loans, visit office of sub registrar or revenue office to verify charge of bank on the mortgaged property.

*19) CERSAI*- after disbursing the mortgage related cases the mortgage must be registered with the CERSAI within one month of mortgage. It is mandatory and registered number must be mentioned in the loan file.

*20) Post sanction appraisal*- post sanction appraisal generally deals with documentation of the facility and after care follow up. One must carefully view the transactions on the loan/ CC facility given. Non payment of interest on due date should be immediately followed up with the borrower. In case of CC frequent overdrafts should not be allowed. Also transactions with sister concerns should be monitored. Scrutinize the stock statements which are periodically submitted. Physically verify the securities and books of accounts of the borrower.

*21) ROC*- in case of pvt and public ltd. Companies, the banks charge on assets of the company must be registered with ROC within 30 days of creation of charge. The search report of this charge must be on the record.

*22) Review of borrower’s account*-periodical review of borrower’s account is necessary for-

a) NPA control- if you can identify some odds during initial stages of account the you can easily minimize your future NPA.

b) Taking preventive measures for improvement in cash flow slippage into substandard/ doubtful category.

c) Necessary to ascertain if business is doing good or bad. If bad then take preventive measures.

*23) Vetting*- the executed documents of loans of larger amounts must be got vetted from advocate on the banks panel and certificate should be put on the record. In case of larger loans the documents must be got vetted second time from another advocate on the banks panel and certificate be put on record.

*24) Post sanction follow up* – for post sanction follow up ensure terms and conditions of sanction is intimated to borrower well in advance also ensure borrower advised the same. Ensure receipt of acceptance of terms and conditions and kept on record and are fulfilled before disbursement.

*25) Post lending visit*- this visit is very important to verify the end use of funds. Assets to be created by the loan sanctioned must be verified physically and facts noted in the visit report.

*26) Renewal or revival*- renewal or revival of accounts must be done on due date on basis of latest financial documents.

The checklist is only indicative and not exhaustive. The guidelines may vary. But It will help people dealing in advances portfolio to take judicious and prompt decisions dealing loan proposals. The mantra for good credit is simple –

*“Good system of appraisal/ assessment of credit Needs and Effective supervision and follow up post sanction”*

IT security recollected questions on 06.09.2020

IT security recollected questions on 06.09.2020 

ISMS 

cobit

Cyber espionage

Malware

Botnets

Downtime

Incident response

Backups

HOT SITE WARM SITE

PDC 

CDR

SEISMIC ZONE

AUDIT CHARTER

FIREWALLS

SMTP

CRYPTOGRAPHY AND STEGANOGRAPHY

VLAN

HUB

SNIFFER

EAVES DROPPING

GOPAL KRISHNA WORKING GROUP

RBI 2018 RECOMMENDATIONS

BLADE SERVER

RFID

GRAMM LEACH BILEY ACT

SAS70

GAISP AND GAIT

ISO27001

VOIP

SALAMI TECHNIQUE

LOAD BALANCING

RDBMS

PREVENTION N DETECTION

ZOMBIE

SECURITY GOVERNANCE

KRA

RTI2005

ACCESS PRIVILEGE 

2 QUESTIONS WERE OF HYPOTHETICAL SITUATION

BC-DRM

FAULT TOLERANT SYSTEM INCLUDES

COBIT

ISACA

ISO BASED QUE

INCIDENT MANAGEMENT

BCPDR

BLADE SERVER

RTI 

ISMS

HARDWARE SECURITY

RDBMS 

WINDOW CONFIGURATION

PHYSICAL SECURITY

DIFF BT VIRUS AND WORM

FASTFLUX

CRYPTOGRAPHY

Msme recollected questions on 23rd Aug 2020

 Following questions were asked for MSME exam held on 23.08.2020

Which model MSME policy represent

Max. Person in transport operator

New definition of MSME

Atmanirbhar package

Medium enterprises is a part of priority sector or not

Max. Partner in private Ltd firm

Name of women entrepreneurs schemes

What is ZED.

Max. Investment of company in MSME

Benifits of LLP

Who is responsible for regulating MSME schemes in states

Full form of HUDCO, TEV and MUDRA, 

Max. Limit for collateral free loan.

Max extent of guarantee cover in CGTSME for different amounts

Problems faced by MSME

What is hurt money, venture capital and angel funds

What is composite loan scheme, 

Single window operator

Limits under PMEGP

What is documentary bill

Back to back LC

NUMERICAL ON debtors turnover ratio, DER, DSCR

What does DSCR indicates

Identify MSME credit rating agencies

Benefits of credit rating agencies

Target for micro enterprises for foreign banks

Roles of BDS

Effect of technology - innovation, diffusion, substitution

Motive of TEQUP scheme

Benefits of cluster

Steps for cluster selection

Where is knitwear cluster

Definition of sick unit

External and internal causes of sickness

What is sick grey area

Viability criteria

What is siphoning of funds

NPA classification

What is micro finance

What is multiple lending

CCP recollected questions on 23.08.2020

 CCP question 23.08.2020

5q set numerical on PSLC-buying of pslc, surplus of PS target etc..

5q numerical on working capital requirements of different method..

5q on CR DER Ratio case study..

5q on stock debt turnover ratio and their impact

5q on LC calculation..

5q set theory on bank guarantee-max period, deferred payment etc..

5q on IRR and NPV-two project with 3 year life , NPV of both project at 16%, choose of project as per BEP, what is IRR, etc..

Diamond dollar scheme...

penalty on  Delayed payment...

5q on impaired asset- Sign of SMA 0, doubtfull asset, provisioning of agri standard, 

Restructuring -when we can classify this account as standard, additional provision on restructured account, 

LLP-separte body

Partnership firm features...

CRILIC full form

fraud what type of risk to bank ...

objective of banking codes and standards..

ANBC formula...

defination of gross profit ratio...

DSCR calculation..

Non judicial stam type..

revival of documents...

which one is not Types of LC...

revised msme classification 2q...

holiday repayment in education loan...

Loan against stock and the stock is in third party warehouse then what type of charge on stock...

confirmed LC means..

profit and loss statement of a entity defines...profit,loss, financial position

*"Income Tax Policy Changes" - Announced by CBDT:*

 *"Income Tax Policy Changes" - Announced by CBDT:* 

*1. Income Tax New disclosures asked in the new ITR forms 1to7 are: 1. House ownership: Individual taxpayers who are joint owners of house property cannot file ITR 1 or ITR4.*

*2. Passport: One needs to disclose the Passport number if held by the taxpayer. This is to be furnished both in ITR 1-Sahaj and ITR 4-Sugam. Hopefully, it will be made mandatory in other ITR Forms as and when they are notified.*

*3. Cash deposit: For those filing ITR 4-Sugam, it has been made compulsory to declare the amount deposited as cash in a bank account, if such amount exceeds Rs 1 crore during the FY.*

*4. Foreign travel: If you have spent more than Rs 2 lakh on travelling abroad during the FY, you need to disclose the actual amount spent.*

*5. Electricity consumption: If your electricity bills have been more than Rs 1 lakh in aggregate during the FY, you need to disclose the actual amount.*

*6. Investment details:  Details of investment qualifying for deduction under chapter VIA with bifurcation of details of investment made during the period from April 1, 2020 to June 30, 2020.*

*7. For every assessment year, the last date for filing tax returns is July 31, However, this year ITR filing date has been extended till November 30, 2020 due to pandemic Covid-19.*

*8. Income Tax Exemptions and Deductions that you can claim under the New Tax Regime for FY 2020-21 (AY 2021-22): Withdrawal by an employee from the Employees' Provident Fund (EPF) is not taxable after 5 years of continuous service.*

*9. Withdrawal from National Pension Scheme (NPS) on maturity or premature closure up to 40% of the amount received on such withdrawal remains tax free for all. In case of partial withdrawal from NPS, up to 25% of the contributions made by the individual will be tax free. Employer’s contribution to NPS up to 10% of their basic salary and dearness allowance also remains tax free.*

*10. Under Section 10 (10D) of the Income Tax Act, the sum assured and any bonus paid on maturity or surrender of the life insurance plan is tax free. Maturity proceeds continue to be exempt under Section 10(10D) even in the new regime. The maturity amount including interest received on the Sukanya Samriddhi Yojana will not attract any tax.*

*11. Conveyance Allowance granted to meet expenditure incurred on conveyance in performance of duties of an office and any allowance granted to an employee to meet the cost of travel on tour or on transfer (including relocation) are tax free.*

 *Interest received from post office savings account balance up to ₹3,500 annually per individual will remain free from tax.*

*12. Any scholarship granted to meet education costs is tax exempt under Section 10 (16) of the Income Tax Act. Gratuity received from the employer up to ₹20 lakh after rendering 5 years of continuous service. Leave encashment received at the time of resignation or retirement up to ₹3 lakh.*

*13. Form 26AS will now be a complete profile of the taxpayer w.e.f. 01.06.2020, CBDT vide Notification dated May 28, 2020 amended Form 26AS in Sec 285BB w.e.f. 01.06.2020. Key takeaways are:*

*14. New form 26AS will also provide information in respect of “Specified financial transactions” which include transactions of purchase/ sale of goods, property, services, works contract, investment, expenditure, taking or accepting any loan or deposits of such value as may be prescribed but not less than of Rs 50,000.*  

*15. Information about income tax demand, refund, proceedings pending, and proceedings completed which may include assessment, reassessment under section 148,153A 153C, revision, appeal will also be shared in this form 26AS.*    

*16. Information on this form 26AS will not be a one-time affair at year end. This will be a live 26AS, as this will be updated regularly within 3 months from the end of the month in which such information is received.*      

*17. Form 26AS will now be a complete profile of the taxpayer for that particular year as against earlier form 26AS which just provided the information about taxes paid by way of TDS/TCS or self-assessing. This form will also have mobile no, email I’d and Aadhar no. of the taxpayer.*      

*18. Further an enabling provision has been notified empowering the CBDT to authorise DG Systems or any other officer to upload in this form, information received from any other officer, authority under any law. Thus any adverse action initiated or taken or found or order passed under any other law such as custom , GST , Benami Law etc. including information about Turnover , import , export etc. will also be put in this form 26AS so that not only the concerned taxpayer but  also all the Income Tax authorities will  know and have access to such information.*    

*19. This form 26AS will also provide information received by Tax Deptt from any other country under the treaty /exchange of information about income or assets of the taxpayer located outside India.*

*20. The implication of this new form 26AS will be that banks , financial institutions or any other authority or customer , buyer etc. while carrying out due diligence of the person/ corporate concerned will now ask for form 26AS  so as to be sure that there are not any major issues about such person/corporates.*

CCP recollected 23 Feb 2020

 CCP EXAM 23-02-2020

1.All most 10 questions from ratios and fund flow and cash flows.( queations  on stock and debtors turnover and their impacts)

2. 5 Questions on working capital assessment by different methods.

3. 5 Questions on lc calculatiin and definitions of lcs.

4.5 Questions set on PERIORITY SECTOR LENDING CERTIFICAE.

5.5 Questions on Msmed act.

6. 4 questions break even analysis.

7.Around 7 questions on payback method and irr

8. One question on formula of ANBC

9.Two questions from company act.(commemcement of business certificate not required now) etc.

10.There were  2 or 3 quetions on provision( provision for mse I remembered. Provisining coverage ratio also asked.

11. Kimberly method related to which.

12.Cardinal principal of lending.

BEP 5 Marks.

WC assessment,

NPV, IRR concept.

LC/BG assessment case study.

PSLC.

Priority sector classification.

LTV, Provisioning norms.

B/S analysis, DER.

ISCR calculation.

Theoretical questions are conceptual, problems were easy, read handbook on credit management thoroughly.

Contract act

 CONTRACT ACT

1. A mandate may not continue to be operative in cases of Death of agent, Lunacy of Agent,

Insolvency of Agent etc

2. The term ― Power of Attorney refers to An instrument by which one person i.e. Agent acts on

behalf of another i.e. Principal

3. Your customer Mr. Qureshi had executed a power of attorney in favour of Mr.Ahmed who operates

the account. You received a notice of death of Mr. Qureshi when a cheque signed by Mr. Ahmed is

presented for payment. Whether Cheque can be paid? Cheque should not be paid. (principal has died

– authority is derived from principal)

4. Mr. Modi maintains a current account in your branch which is operated by Mr. Jain in whose favour

Mr. Modi has executed a Power of Attorney. A notice about the death of Mr.Jain is received.

Subsequently a cheque signed by Mr. Jain is presented for payment. What action will be taken? May

be paid after clearance from Mr.Modi

5. A and B maintain a joint account which is operated independently. A serves a notice not to honour

any cheque drawn by B. Subsequently a cheque signed by B is presented for payment. Whether the

cheque can be paid? His cheque should not be paid

6. The current account of a minor is operated by his natural guardian. Whether the Bank can grant

an Overdraft? No.

7. A minor can be admitted to a firm as what? Beneficiary

8. If one of the defendants in a suit is a minor, whether he can be sued? He can be sued thro

his/her guardian

9. When customer hands over money to the bank for remittance, the relationship between customer

and banker is: Principal and agent

10. For recovering the dues the Bank can enforce the security by: Selling movable properties

pledged to it after giving due notice

11. Right of set off - It can be exercised even for time barred debts

12. What type of right available to a guarantor is not available to an Indemnifier? Right of

Subrogation.

13. The contract of insurance is a contract of Indemnity.

14. Right of lien/rights as pledge/right set off of a Banker are not barred by limitation.

15. The notice of assignment should be signed by Both by assignor and assignee

16. What is the consideration in the case of a guarantee? Any promise or act done for the benefit of

the principal debtor.

17. Government dues will have priority over pledged security. No. Pledge will prevail over

government dues provided there is no special act giving priority to government dues in that state.

18. The very important condition/feature of a pledge is: Prior notice of sale is a must in the case of

sale of pledged property

19. Do we have to exhaust all avenues against the Principal Debtor before proceeding against the

guarantor? No, we can proceed against any of them

20. Mr.X has given the guarantee on behalf of Mr.Y on 1/10/01. Your branch has invoked the

guarantee on 1/10/2003. The last date of filing suit is: 1-10-2006.

21. There are 2 loan accounts of the same borrower with different guarantors. To recover through

court of law- Two different suits should be filed.

22. The guarantor of defaulted account is navy personnel. What amount can be recovered from him?

Salary of Navy personnel is not attachable.

23. Guarantee is defined under which act? Contract Act.

24. Assignment to be valid legally Must be in writing

25. Whether the Bank can exercise its lien on the Credit balance in the loan account? YES.

26. The essence of the Right of Set Off is that Mutual claims of debtor and creditor can be merged

and only the remainder is Payable by the debtor/creditor

27. Whether the Creditor can proceed against the surety at his will? No.

28. Bank has got a right to take possession of movable securities hypothecated to us in the event of

default of the borrower on account of Hypothecation agreement

29. Can the Illiterates, Minors; Married Women are competent to endorse an instrument? YES.

30. The transactions relating to safe custody of articles are governed by The Indian Contract Act

31. The important requirement of a valid guarantee executed by Central/State government is that: It

should be executed on behalf of the President or Governor as the case may be

32. When the bank carries out standing instructions for paying insurance premia it acts as An agent

33.Actionable claim means A claim to any debt other than the debt secured by hypothecation, pledge

or mortgage.

34.Whether consideration is required in case of an assignment? Consideration is not essential in case

of an assignment.

35. Whether Claims of debt secured by mortgage can be assigned? No. Claims of debt secured by

mortgage can not be assigned.

36. Whether Assignment of a debt should be in writing? YES. It should be in writing.

37. Who can create a valid pledge? Owner of the goods and the Agent of the owner can create a

valid pledge.

38. When the bank takes possession of hypothecated goods, it is converted into Pledge.

39. Whether an agreement of Hypothecation or Pledge can be attested? No. It should not be

attested.

40. Whether the power to sell without the intervention of the court In case of a pledge/

hypothecation/an English mortgage is available?

YES. The power to sell without the intervention of the court is there even beyond limitation.

41. Whether we can proceed against either the borrower or the guarantor reserving the right to

proceed against the other subsequently?

YES. We can do so with the leave of the court under Order 2 Rule 2 of CPC

42. If court appoints a guardian then when shall a person attain majority? On completion of 18 years

of age

43. While computing the age of majority of a person domiciled in India which of the following shall be

taken into account.

The day on which he was born is to be included as a whole day and he shall be deemed to have

attained majority at the beginning of 18th anniversary of that day

TT Rates and Bill Rates

 TT Rates and Bill Rates:;

Following 4 types of buying and selling rates are important:

1. TT Buying rate

2. Bill Buying rate

3. TT Selling rate

4. Bill Selling rate

In Interbank market, exchange rate is quoted up to 4 decimals in multiples of 0.0025. e.g.

1USD=53.5625/5650

For customers the exchange rate is quoted in two decimal places i.e. Rupees and paisa. e.g. 1

USD =Rs. 55.54.

Amount being paid or received will be rounded off to nearest Rupee.

TT Buying Rate:::

It is required to calculate when our Nostro account is already credited or

being credited without delay e.g. Receipt of DD, MT, TT or collection ofForeign bills. This rate is used for cancellation of Forward Sales Contract.

Calculation

Spot Rate – Exchange Margin

Bill Buying Rate::

Bill Buying Rate Bill Buying rate is applied when bank gives INR to the customer before

receipt of Foreign Exchange in the Nostro account i.e. Nostro account is

credited after the purchase transaction. In such cases.

Examples are:

 Export Bills Purchased/Discounted/Negotiated.

 Cheques/DDs purchased by the bank.

Calculation

Spot Rate + Forward Premium (or deduct forward discount) – Exchange margin.

TT Selling Rate::

TT Selling Rate Any sale transaction where no delay is involved is quoted at TT selling rate.

It is desired in issue of TT, MT or Draft. It is also desired in crystallization of

Export bills and Cancellation of Forward purchase contract.

Calculation

Spot Rate + Exchange Margin

Bill Selling Rate:::

Bill Selling Rate It is applied where handling of documents is involved e.g. Payment against

Import transactions:

Calculation

Spot Rate + Exchange Margin for TT selling + Exchange margin for Bill

Selling

Examples::

Q. 1

Bank received MT of USD 5000 on 15th Sep. The Nostro account was already credited. What

amount will be paid to the customer: Spot Rate 34.25/30. Oct Forward Differential is 22/24.

Exchange margin is .80%

Solution

TT buying Rate will be applied

34.25 - .274 = 33.976 Ans.

Q. 2

On 15th July, Customer presented a sight bill for USD 100000 for Purchase under LC. How

much amount will be credited to the account of the Exporter. Transit period is 20 days and

Exchange margin is 0.15%. The spot rate is 34.75/85. Forward differentials:

Aug: .60/.57 Sep:1.00/.97 Oct: 1.40/1.37

Solution

Bill Buying rate of August will be applied.

Spot Rate----34.75 Less discount .60 = 34.15

Less Exchange Margin O.15% i.e. .0512 =34.0988 Ans.

( Transit period is rounded to next month since currency will be cheaper as it is buy transaction)

Q. 3

Issue of DD on New York for USD 25000. The spot Rate is IUSD = 34.3575/3825 IM forward

rate is 34.7825/8250

Exchange margin: 0.15%

Solution:

TT Selling Rate will Apply

Spot Rate = 34.3825 Add Exchange margin (.15%) i.e. 0.0516

TT Selling Rate = Spot Rate + Exchange Margin = 34.4341 Ans.

Q. 4

On 12th Feb, received Import Bill of USD-10000. The bill has to retired to debit the account of

the customer. Inter-bank spot rate =34.6500/7200. The spot rate for March is 5000/4500. The

exchange margin for TT selling is .15% and Exchange margin for Bill selling is .20%. Quote rate

to be applied.

Solution

Bill Selling Rate will be applied.

Spot Rate + Exchange margin for TT Selling + Exchange margin for Bill selling =

34.7200+.0520+.0695 = 34.8415 Ans.

CAIIB ABM recollected questions morning shift 2019

 CAIIB ABM recollected questions morning shift

2019

Difference between micro and macro economics

5 questions from demand and supply curve

Cash budgeting

Employees feedback system

Sampling methods

simulation and linear equations questions !! 10 marks

Supply and demand 5 marks

Hrms approx 30 questions

Module d specially focus on lc 5 marks

 Sampling calculations

 Break even point

Npv

 Sampling

Npa provision calculations 

 Hrm 2 case study

5 questions from psl. To calculate nbc, anbc, ridf contribution, weaker section, micro enterprises

Demand deposit with banking system includes what all

5 questions on linear programming

WS 10

Micro enterprises 7.5

Job enrichment, evaluation, credit risk,working capital ,acid test ratios,

Sampling, break even point,lesserfree economy, gdp

WHY WE SHOULD BE SMILING ALWAYS? very good article must read:::

 WHY WE SHOULD BE SMILING ALWAYS? very good article must read:::

Everything is valuable, only twice in our lifetimes:-

1. Before getting it, and

2. After losing it!

Two things bring happiness and success, in life.

1. The way you MANAGE, when you have nothing, and

2. The way you BEHAVE, when you have everything!

The NICEST place to be is in someone's Thoughts, and

The SAFEST place to be is in someone's Prayers.

One of the greatest victories that you can gain, over someone, is to beat him, at politeness.

Keep your face to the sun, and you will not see the shadow!

A deaf child says, "For all of you, I am deaf; but for me, all of you are dumb"!

Life differs, according to each person's perspective.

Live the way, you want to.

Ego is the only requirement, to destroy any relationship. Be a bigger person. Skip the "E", and let it "go"!

One good thing about Egotists - they don't talk, about other people!

Getting angry is punishing yourself for the mistakes of others!

Trust, is like a STICKER. Once it is removed, it may stick again, but NOT as strongly as it held, when first applied. Always take care, of relationships.

Everything about the future, is uncertain. But one thing is for sure. - God has already arranged, all our tomorrows. We just have to TRUST HIM, TODAY!

NEVER win people, with arguments. Rather, defeat them, with your silence! Because, people who always wish to argue with you, cannot bear, your silence!

The search for happiness is one of the main sources, of unhappiness.

Diplomacy is the art of telling people, to go to hell,

in such a way, that they tend to ask you, for directions!

If a drop of water falls on a lake, its identity is lost for ever. But if it falls on a lotus leaf, it shines like a pearl. The drop of water is the same. But it is its surroundings that matters.

Our HOPES should be like our hair & nails. No matter how many times they get cut, they never stop growing.

If you walk the way guided by humans, you will find a hopeless end. But if you walk the way guided by God, you will find endless hope.

Memories are always special. Sometimes we laugh, remembering the days we cried. Sometimes we cry, remembering the days we laughed!

That's Life!

The sea is common, for all. Some take pearls from it. Some take fishes from it. Some come out, just with wet legs!

The world is common, to all. What we get, is what we try for!

Life, is very complicated. When you have standards, people call it ATTITUDE.

To smile without condition,

To walk without intention,

To give without reason, and

To care without expectation,

Are the beauties, of any relationship!

All communication problems, are because we don't listen, to understand. We only listen, to reply!

There are many languages, on earth. Smile speaks them all. Keep smiling

Target JAIIB and Its strategy

 Target JAIIB and Its strategy

If you have just joined the banking Industry, you must have applied for JAIIB or if not yet, you’ll be applying soon. And one thing everyone wants to know is how to pass JAIIB in first attempt. The obvious reason for clearing JAIIB i.e., Junior Associate of Indian Institute of Bankers is to get an extra increment. So sooner you pass the JAIIB exam, earlier you get an extra increment. If you have joined as Scale – I Officer (P.O.), your initial basic salary would be Rs.23700 and if you clear JAIIB, you get one increment and your basic salary increase by Rs.970. So, if you miss it first time, your increment gets delayed by 6 months. That means loss of Rs.5820+DA. So it becomes important to clear the JAIIB in first attempt itself.

JAIIB exam is held twice a year (June and December) and around 1.50 lacs candidates appear for the exam. Only 22-25% candidates are able to clear the exam each time. So, does it mean that JAIIB is difficult to crack? What should be the strategy to clear the JAIIB in first attempt itself? How one should prepare for JAIIB.

Passing marks for JAIIB are 50% aggregate and 45% in each subject. If aggregate marks are less than 50% or marks in a particular paper are less than 45% but you score 50% or more in any subject, you do not qualify the exam but you need not give that particular paper in next attempt, in which you score 50% or more.  The best part of JAIIB exam is that result of each paper is shown to you immediately after you submit your online exam.

Simple steps to prepare for the JAIIB exam

Take off the burden from your mind, you are required to score only 50%, which is not very difficult. And the good thing is that there is no negative marking.

Here is a simple step by step guide which will help the bankers to be prepared for JAIIB.

If you come from finance or commerce background and have studied B.Com, MBA (Finance) etc., it is relatively easy to crack the JAIIB. Because you would have studied atleast 60% of the topics covered in JAIIB. If you are not from commerce or finance background, you need to make little extra efforts

Preparation strategy for JAIIB examination:

JAIIB exam needs some dedicated preparation to crack the exam, especially for the non commerce graduates. Many young bankers prepare for the exam only during the last week; Then they write one paper after getting low marks, they simply give up the attempt. Some take two days leave before the exam and prepare for it eventually they fail because of shortage of four or five marks. These strategies may work for few talent bankers but not for all.  After our busy working hours, daily we have to spend some time for preparation of the exam. Since most of us are very new to the banking industry and its concepts, we need regular revisions to familiarise with the concepts.So all it needs a self disciplined and determined mind to prepare for the exam.

Allocation of Study time:

Daily we need to spend at least 1 1/2 to 2 hours a day for preparation of the JAIIB exam. Cramming before the exam night or before two days won’t help for understanding the information. It may help for few direct questions but it won’t be useful for complex questions. Also we wont have enough time to complete the sy1llabus and will lead to anxiety & stress. Sacrificing our sleep before the exam night will also make us counterproductive so it better to study every day.

Importance of Studying daily:

Studying daily and revising regularly helps to familiarise with concepts. It also helps us to understand the information. Having a study routine is not only helpful for exam but also improves our reading habit which every banker needs, as our industry is very dynamic. In our hectic banking hours finding time for continuously 2 hrs a day is very hard. But having small sessions of 30 to 40 minutes thrice in a day is easy to find. In the era of smart phones, we can study anything at anywhere so when you find a spare time please use it.

Study Material:

For preparation, I strictly recommend the three comprehensive courseware developed by IIBF, published by MacMillan for each paper. These books are not only helpful for the exam but also for our Banking career. If you really want to pursue your career as banker then these books are must and fundamental. They act like a reference manual for us. So my humble request to all, please don’t prepare only for clearing the exam; Kindly prepare with the motive of improving knowledge in the banking field. Because the knowledge gathered during our JAIIB exam will also aid us during our day-to-day banking life.

Apart from the MacMillan books, the books and work books prepared by JAIIB coaching centres such as N S Noor, Deewan Banking Academy etc,. are also available in the market. Mostly they are good but not comprehensive and may not have clear explanation for some topics. All the books are about same cost, so I recommend the Macmillan books

They are many free study material is available in the facebook groups and in websites also. If possible get that too for your reference but my best suggestion is to buy Macmillan books. The amount spent is more than worthy, the book will be useful for our banking career.

For Latest developments & Current affairs related to Banking Industry:

Apart from the above syllabus we need to refer the following for full preparation of the JAIIB exam.

1. Current developments in Master Circulars/ Master revisions issued by RBI

2. Websites of RBI,  SEBI, BIS, IRDAI, FEDAI for reference and development in concerned subjects

3. IIBF Vision and Bank Quest published by IIBF for the members it is free and sent to email id.

4. Financial newspapers/publication can also be referred for current affairs.

5. New Government Schemes related to banking sector.

Nature of Questions:

Depending upon the complexity of the question, the marks of the question varies.

0.50 mark – Direct question which requires one word answers. Answer this questions with 100% accuracy. Most of these questions are from definitions, types or classification, abbreviation, simple explanations etc,. So at least read and go through all the topics in Macmillan Book twice.

Planning a study schedule:

Now we have allocated our time and purchased  & collected the necessary materials for preparation of JAIIB exam. Now, “What is next??;” Having a strategy/plan/routine schedule for preparation of JAIIB Exam. Strategic planning is important for any activity because it provides a sense of direction and evaluation of progress in our efforts towards goal. A goal without a plan is just a wish, so please make a plan and try to stick to it.

We have already seen the JAIIB syllabus here. In order to pass the JAIIB exam all we need to do is to get 50% of marks in each paper within four consecutive attempts. So we don’t need to study all modules deeper and do research on each topic. If we cover 75% of the syllabus for each paper is enough to get more than 50%.

The strategy and study plan I discuss below are just an example for understanding, viewers and readers are instructed to prepare their own schedule based on their level of knowledge and skills in each subjects.

Overlapped Topics:

Some topics of a paper is also a covered in other papers and questions can be asked in any of the paper. For example AML/KYC is also common for Accounting & Finance and Legal & Regulatory aspects of Banking. Since questions can be asked in any of three exams from this topics, prepare for the paper which has most topics & sub-topics in that particular subject. Also revise the same when you need to prepare for the overlapped topic.

Study Plan: Principles & Practices of Banking:

In my view this is the easiest subject to pass when compared to other papers. Because in this paper, all the topic are conceptual and mostly related to our day-to-day banking activities. Hence most of the topics (not all) are already familiar to us.

Module A: Indian Financial System

Read and understand all the topics and sub topics without any omission.

If possible take notes in the form of snippets this will help for revision of the topic. Since we all new to banking terms repeated revisions are required for this module.

We can expect 20 to 25 marks in this unit.

Question from current development is asked from this unit.

Prepare to score all the marks from this module.

Module B: Functions of Banks

This unit is also important and all the topics should be thoroughly studied.

We can expect 20 to 25 marks from this unit.

This unit is also needed repeated revision so taking notes while studying is recommended.

Question from current development is asked from this unit.

This is also the our scoring section, prepare in a way to get all the marks from this module.

Module C: Banking Technology

If your are techie, take full 6 hrs and study thoroughly.

For techies, this unit helps to surpass the minimum marks comfortably.

Others prepare in a way to answer the direct question from this module.

From this unit we can expect 15 to 20 marks.

We can expect question from latest development in Banking related to IT.

Module D: Support Services & Marketing of Banking Services/Products

If you are BBA or MBA and studied marketing related concepts in your graduation then take full 6 hrs and thoroughly study the unit.

Others prepare to answer for direct questions.

We can expect 10 to 15 marks from this unit.

Study Plan: Accounting & Finance for Bankers:

Many bankers treat the Accounting & Finance paper as tough. The main reason is cramming of information won’t work here like other papers. Since here we have to study, understand and apply the concepts, we need to study regularly and practice. So a good study routine is must and here all the modules are important for exam purpose as well as for our knowledge. So there is no skipping of modules in this paper and give importance to all topics.

Module A: Business Mathematics and Finance

This is a must read and must know module for all bankers. So don’t even skip a small topic.

Since these module is mathematical in nature, write down all the formulas and go thorough it daily.

Practice yourself with formulas by assuming different values from the exercise and solved examples.

Don’t ever fail to take notes and snippets for formula’s explanation & applicability.

We can expect 25 or more marks in this unit.

Understanding of calculation and concepts is must so that we can answer confidently if the questions are twisted.

Module B: Principles of Book Keeping and Accountancy

This unit is also important and all the topics should be thoroughly studied because if we are in bank we should know the accountancy.

We can expect 20 to 25 marks from this unit.

Understand the concept is key for this paper. Don’t mug-up; if you cannot understand a topic just ask your B.Com friend. Or ask him to simply explain the basics of accountancy.

This unit is also needed repeated revision so taking notes while studying is highly recommended.

This is also the our scoring section, prepare in a way to get all the marks from this module.

Module C: Final Accounts

This unit is the most important and very useful for our day-to-day activities.

This unit is conceptual as well mathematical.

So take notes for formulas and revise it.

B.Com friend is the best mentor for this module.

From this unit we can expect 20 to 25 marks.

Module D: Banking Operations and Accounting Functions

This unit is comparatively less important but good preparation of this unit will help to score the pass mark.

This unit will have many overlapped topics

Prepare to answer for direct questions.

We can expect 15 to 20 marks from this unit.

Question from latest development can be asked in this module.

Study Plan: Legal & Regulatory Aspects of Banking:

Many people underestimate the legal paper and say this exam is very easy to clear. This is purely a law oriented paper, so many of the legal terms used in the topics are new to us. In order to familiarise and to understand those topics, we have to spend more time for this paper. Also good memorization skill is required to remember the numbers & data. All the modules are about equally important, hence don’t skip a topic.

Module A: Regulation and Compliance

This is a less important but easier module compared to other modules of the paper.

This module is full of theory related to Banking Regulation and its compliance.

Don’t ever fail to take notes and snippets for explanation & applicability.

We can expect 15 to 20 marks in this unit.

Question from latest development can be asked in this unit.

Module B: Legal aspects of Banking Operations

This module is a foundation and must study.

Understand the concepts and definitions for legal terms

Take notes, Take notes, Take notes and revise it until having a clear picture about the topic.

This is a scoring module so prepare well.

20-30 marks can be expected from this unit.

Module C: Banking related laws

A toughest module and it is a must study for all

Repeated revision is required to remember the numbers & data.

This unit will consume more time and make us feel bore. So study the topics in different sessions of 30 mins.

We can expect 25 to 30 marks from this unit, so it is a mark scoring unit.

Question can be asked from current developments or amendments so update accordingly.

Module D: Commercial Laws with reference to banking operations

This module is conceptual and also requires memorization too.

Some of the topics are common with Module D of Paper 2: Accounting & Finance.

This also a scoring module we can expect 20 – 25 marks from this unit.

On the actual test day

Choose the easy questions first as they will give you an estimate of the score. Then come back to the questions which were missed. Also, there is no negative marking, so attempt all questions. If you stuck in a question, leave that by marking and go ahead.

We hope this will help you out to pass the JAIIB in first attempt. If you have any queries/ suggestions, please write in comment box below.

Conclusion:

The time period mentioned above are for studying those topics at least one time and indicative for understanding. It will vary depending upon personal capacity, skill and knowledge in the subjects. So prepare your own study schedule and stick with it. Remember a determined and self disciplined mind is key to the success. So whatever the strategy you follow for JAIIB examination make sure you are sticking with your plan and be true to yourself.

https://iibfadda.blogspot.com/2020/05/target-jaiib-and-its-strategy.html?m=1

Caiib BFM Strategy

 BFM::;;

The strategy for the study of Bank Financial Management which many people finds difficult to clear. If you study properly, it is easy to clear the BFM. This subject also contains 4 modules, they are;

-International Banking

-Risk Management

-Treasury Management

-Balance Sheet Management

Many people do not correlate the syllabus of the subject with day to day banking activity. So they find it difficult to score and understand this subject. But this not true, this subject is very much important which will increase your knowledge regarding top management & middle management functioning of your bank as well as banking as a whole industry.

All the modules are equally important, but you may clear the paper with three modules study also. Module A & B are relatively easy and scoring as well. Let us discuss strategy for each module.

Module A-International Banking

Important topics are Exchange Rates and Forex Business, Basics for Forex Derivatives, Documentary LC, and Facilities for Exporters & Importers

Rapid reading or bullet point reading is quite useful for this module. Practice numerical again and again.

Many numerical/case studies are asked from this module which are quite easy as compared to Module B & Module D case studies. Refer the case studies from McMillan given at the end of the topic. Also N.S.Toor book has many numerical and case studies. Questions are asked on Exchange rates, Shipment Finance etc.

Module B-Risk Management

All chapters are equally important as they are interlinked to each other. Again focus more on case studies/numericals given in Apendix at the end of chapter. Maximum case studies are asked from this module. Though short notes are useful for this module I would suggest McMillan reading for this module because some questions are twisted type for which you require details of the concept which is hard to get from short notes. RBI website contains FAQs which are quite useful for this modules, you should read them at least once.

Module C- Treasury Management

Important topics are Introduction, Types of treasury products, Treasury Risk Management, Treasury and Asset-Liability Management.

Mostly questions asked on this module are theoretical type, so through reading of McMillan is important. If you don’t get time then you can skip this module or read short notes since the weighted of this module for exam point of view is low according to me as compared to Module A&B. But those who wish to make carrier or work in treasury department, this is the best module to learn.

Module-D Balance Sheet Management

Important chapters are Components of ALM in Bank’s Balance Sheet, Capital and banking Regulation,, Capital Adequacy, Asset Classification and Provisioning Norms, Interest rate Risk management.

Though McMillan book contain sufficient material but I would suggest you to refer RBI website for this module. In this module focus more on Case Studies as compared to theoretical questions. Do not skip this module as it is much important for exam as well as knowledge point of view. No need to read McMillan line by line.

Overall you have to keep balance between theoretical reading as well as case studies/numerical since the paper would contain 40-45% case studies. N.S.Toor book contains good case studies and MCQs. Also there are many resources available on the internet from where you will get case studies for this module. After giving this paper you will realized that BFM is easier as compared to ABM and no need to worry for BFM.

CAIIB ABM strategy

 CAIIB ABM Strategy

ABM is one of the compulsory subjects for CAIIB. Most of the people find difficult to clear this paper. Today, I will tell you how to study for ABM subject.

This subject also contains 4 modules

MODULE – A: Economic Analysis

MODULE – B : Business Mathematics

MODULE – C : HRM in banks

MODULE – D : Credit Management

As we are bank employees we get very less time for study, so how to decide which topics to be read, which topics to be skipped?

-As I had told you in my previous blog article that generally paper consists of 60% theoretical & 40% numerical or case studies, so choose the module to be study in deep so as to clear the paper easily depending upon your personal strength and weakness.

If you observed all the modules, you will realize that Module A and Module C are most scoring modules. Do not skip these modules. Module B contains Business Mathematics which many people find difficult to study as the level of mathematics is tough, especially for non-engineering background people. Those who works in Credit/Loan Department will find that Module D easy as well as interesting. Module D is most important not only exam point of view but also for your daily working in Credit Department. So do not skip Module D.

IMPORTANT TOPICS FROM EACH MODULE

Module A- Supply and Demand, Money Supply and Inflation, Business Cycles, GDP Concepts and Union Budget.

No need to read McMillan Book line by line for thise module, short notes will be quite useful for studying this module. Don’t read stats given in these chapters. In GDP Concepts and Union Budget chapters numerical are asked which are quite easy provided you know the components and formula.

Module B-Time Value of Money, Sampling Methods, Simulation, Bond Investment

Don’t go to deep for study this module as mathematical calculations are difficult to understand especially for non engineering background people. Practice the examples given in McMillan. Those who are not good at math can skip this module and focus more on remaining modules.

Module C-Development of Human Resources, Human Implications of Organisations, Performamce Management, HR & IT

You need to read thoroughly all the topics from this module from McMillan. It is quite easy and theoretical only. Repeatedly read MCQs from N.S. Toor book of this module.

Module D-Overview of Credit Management, Analysis of Financial Statement, Working Capital Finance, Credit Control and Monitoring, Rehabilitation and Recovery.

Read this module from McMillan book only. The chapters in this module are not lengthy as compared to other modules. Practice Numerical from Financial statement and balance sheet.

Overall, you have to study at least three modules in detail so as to achieve the 50 score. You can choose the modules to study more depending upon your strength. I would suggest that you can keep module B at last, just read formulas from this module, as this module is quite boring, lengthy and hard to understand.