Banking & Economy - 2

Short Notes on CBS

Short Notes on CBS   What is CBS?  CBS refers to the software applications for recording transactions, storing customer information, calculating interest and completing the process of passing entries in a single database.   What CBS does?  CBS enables accessing of complete customer account details centrally. It makes it possible for a bank customer to access his bank account through whichever channel Read More


Reserve Bank of India (RBI)

Reserve Bank of India (RBI)   I. RBI established on April 1, 1935 under RBI Act 1934 (recommendations of John Hilton Young Commission 1926 – called Royal Commission on Indian Currency and Finance), is the central bank of the country and was nationalised w.e.f Jan 01,1949. II. Originally it was a shareholders’ bank which was taken over by the Central Govt. under Reserve Bank (Transfer of Public Ownership) Read More


Special Economic Zones (SEZs)

Special Economic Zones (SEZs)   Special Economic Zones (SEZs) is a geographical region that has economic laws different from a country’s typical economic laws. Here different economic laws mean hassle free laws where companies can enjoy various benefits for running their business like tax free imports, etc. These SEZs are located within a country’s national borders usually near border so that trade is easy from the Read More


Some Important Terms (Banking)

Some Important Terms (Banking)   Bridge Loan: A short-term loan that is used until a person or company secures permanent financing or removes an existing obligation. This type of financing allows the user to meet current obligations by providing immediate cash flow. The loans are short-term (up to one year) with relatively high interest rates and are backed by some form of collateral such as real estate or inventory. Also know Read More


INFLATION

What is Inflation or What is the meaning of Inflation : In economics inflation means, a rise in general level of prices of goods and services in a economy over a period of time.   When the general price level rises, each unit of currency buys fewer goods and services.  Thus, inflation results in loss of value of money.   Another popular way of looking at inflation is "toomuch money chasing too few goods".   Th Read More


Money Market

Money Market A money market is a market for borrowing and lending of short-term funds. It deals in funds and financial instruments having a maturity period of one day to one year. It is a mechanism through which short-term funds are loaned or borrowed and through which a large part of financial transactions of a particular country or of the world are cleared. It is not a single market but a collection of markets for several instruments Read More


Commercial banks

Commercial banks Commercial banks, which dominate this industry, offer a full range of services for individuals, businesses, and governments. These banks come in a wide range of sizes, from large global banks to regional and community banks.   Global banks Global banks are involved in international lending and foreign currency trading, in addition to the more typical banking services.   Regional banks Regi Read More


History of Indian Banking System

History of Indian Banking System The first bank in India, called The General Bank of India was established in the year 1786. The East India Company established The Bank of Bengal/Calcutta (1809), Bank of Bombay (1840) and Bank of Madras (1843). The next bank was Bank of Hindustan which was established in 1870. These three individual units (Bank of Calcutta, Bank of Bombay, and Bank of Madras) were called as Presidency Banks. Allahabad Bank Read More


Banking Related Acts

Banking Related Acts   1. Negotiable Instrument Act–1881   2. The Bankers’Books Evidence Act–1891   3. The Reserve Bank of India Act–1934   4. The Industrial Finance Corporation of India Act–1948   5. The Banking Companies (Legal Practitioner Clients’ Accounts) Act–1949   6. The Industrial Disputes (Banking and Insurance Comp Read More


Different codes used in Banking Context

Different codes used in Banking Context   In this post you will get to know about the various codes used in Indian Banking Industry which identifies a bank branch of a particular bank uniquely. These codes are used for different purposes as explained below. So with the help of these codes alone, one can find the other information and address of a particular branch.   IFSC (Indian Financial System Code) Is is an al Read More


Immediate Payment Service (IMPS)

Immediate Payment Service (IMPS) Immediate Payment Service (IMPS) is a tool through which one can transfer money instantly within banks across India through mobile, internet and ATMs which is not only safe but also economical both in financial and non-financial perspectives. This facility is available 24x7x365. The IMPS facility is provided by National Payments Corporation of India (NPCI).   Why IMPS was started? Before IM Read More


Cheque Truncation System (CTS)

Cheque Truncation System (CTS) Truncation is the process of stopping the flow of the physical cheque issued by a drawer at some point by the presenting bank en-route to the paying bank branch. In its place an electronic image of the cheque is transmitted to the paying branch through the clearing house, along with relevant information like data on the MICR band, date of presentation, presenting bank, etc. This means that with this syste Read More


Unified Payments Interface

Unified Payments Interface Unified Payments Interface (UPI) system is been developed for all retail payments in the country. It has been developed by National Payments Corporation of India (NPCI) to make the transfer of money easy and simple. It was launched on 11th April 2016. At the start, ten major banks — SBI, Canara Bank, BOI, ICICI Bank, HDFC Bank, Punjab National Bank, Bank of Baroda, HSBC, and Citi Bank integrated the int Read More


About Asian Development Bank

Asian Development Bank The idea of formation of Asian Development Bank (ADB) was conceived in 1960s with a mission to fight poverty in Asia and the Pacific. A resolution was passed in 1963 that set the vision on the way to becoming reality. ADB was opened on 19 December 1966 with 31 members and Takeshi Watanabe from Japan was ADB’s first President. It set up in Manila, Philippines so which is its headquarters. ADB’s all pre Read More


About Krishi Kalyan Cess- KCC

About Krishi Kalyan Cess- KCC Today we will discuss about Krishi Kalyan Cess. Budget 2016-17 proposed to impose a Cess, called the Krishi Kalyan Cess, of 0.5% on all taxable services. The new effective Service Tax hence increased to 15% from 14.5%. So it is not a scheme, it is just a new kind of tax that Finance Minister has introduced.   What is this? The term “Cess” means “tax” levied by the gover Read More


Government Budgeting in India

Government Budgeting in India  A government Budget is basically as an annual statement of all the estimated receipts and estimated expenditures of the government in a fiscal year from 1 April to 31 March. Though the word “Budget” does not finds mention in the Constitution, but it is mandated in Article 112 that the Union government shall present before the Parliament an “Annual financial Statement” of estimated Read More


Different Types Banks India

Different Types Banks India   Deposit Banks The most important type of deposit banks is the commercial banks. They have connection with the commercial class of people. These banks accept deposits from the public and lend them to needy parties. Since their deposits are for short period only, these banks extend loans only for a short period. Ordinarily these banks lend money for a period between 3 to 6 months. Read More


Types of Government Bonds

Types of Government Bonds A Government security is actually a tradable instrument that is issued either by the Central Government or the State Governments. The government bond acknowledges the Government’s debt obligation towards the buyer with their original maturity at one year or more. These Government securities carry no risk of default practically, therefore, they are called risk-free gilt-edged investment instruments. There Read More


Types of Banks and Their Functions

Types of Banks and Their Functions Broadly, banks are classified either into commercial banks or as central bank. they are also classified as Scheduled and Non-scheduled Banks.   Scheduled banks have been included in the second schedule of the Reserve Bank, and fulfils the following three criteria: It must have a paid up capital of at least Rs. 5 lakhs. It must fulfil the RBI norms about no activity that may be detrime Read More


Role and Functions of NABARD

Role and Functions of NABARD NABARD is a development bank established under statutory provisions. Let us briefly go through important characteristics of this development bank to get a clear understanding of its role and functions.   Role and Functions of NABARD The National Bank for Agriculture And Rural Development is popularly referred to as NABARD. NABARD is designated as an apex development bank in the country.This Read More


Ncert history Notes Economic impact of British Rule in India

Ncert history Notes Economic impact of British Rule in India Prior to British colonial rule, India was well known for its handicraft industries dealing with cotton and silk textiles, metal and precious stone works, etc. These products manufactured in India had a worldwide market due to fine quality of material used and high standards of craftsmanship employed in the exported products. With coming of British colonialism in India, th Read More


Food Processing Industry in India

Food Processing Industry in India Food is very important part of a civilization. It is characterized by any plant or animal material, consumed for nutrition and sustenance. Since the collection, preparation and distribution of food has been the very basis of civilization, culture and home, humanity has always recognized the value of preserving food. This preservation of food ensures availability in times of need by means of pickling, s Read More


Agriculture in Indian Economy

Agriculture in Indian Economy These trivia about role of agriculture in Indian Economy is from Economic Survey 2013-14, so the data given below is latest from government sources and hence, relevant. We have compiled it for benefit of fellow aspirants. This will especially prove useful for civil services mains paper IV. The share of agriculture in GDP has been constantly declining over the years. This was highlighted yet again in this y Read More





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