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Saturday, 5 March 2016

Interest Equalisation Scheme on Pre and Post Shipment Rupee Export Cred

Interest Equalisation Scheme on Pre and Post Shipment Rupee Export Credit

The Government of India has announced the Interest Equalisation Scheme on Pre and Post Shipment Rupee Export Credit to eligible exporters. The scheme is effective from April 1, 2015. The details of the scheme are enclosed.

2. Accordingly, scheduled Urban Cooperative Banks holding AD Category I licences are eligible under the Scheme and are advised to adhere to the following operational procedure for claiming reimbursement:

A. Procedure for passing on the benefit of interest equalisation to exporters:

(i) For the period April 1, 2015 to January 31, 2016 banks shall identify the eligible exporters as per the Government of India scheme and credit their accounts with the eligible amount of interest equalisation.

(ii) From the month of February 2016 onwards, banks shall reduce the interest rate charged to the eligible exporters as per our extant guidelines on interest rates on advances by the rate of interest equalisation provided by Government of India.

(iii) The interest equalisation benefit will be available from the date of disbursement up to the date of repayment or up to the date beyond which the outstanding export credit becomes overdue. However, the interest equalisation will be available to the eligible exporters only during the period the scheme is in force.

B. Procedure for claiming reimbursement of interest equalisation benefit already passed on to eligible exporters:

(i) The sector-wise consolidated reimbursement claim for the period April 1, 2015 to January 31, 2016 for the amount of interest equalisation already passed on to eligible exporters should be submitted to RBI by February 29, 2016.

(ii) The sector-wise consolidated monthly reimbursement claim for interest equalisation for the period February 2016 onwards should be submitted in original within 15 days from the end of the respective month, with bank's seal and signed by authorised person, in the prescribed format given in Annex I.

(iii) The claims should be accompanied by an External Auditor's Certificate (with stamp and membership number) certifying that the claim for interest equalisation of Rupees…………….. for the month ended ………….. has been verified and found to be strictly in accordance with the provisions of the Government scheme enclosed with the circular DCBR.CO.SCB.Cir. No.1/13.05.000/2015-16 dated February 11, 2016. Claims for reimbursement will be considered for settlement only after receipt of this certificate.

(iv) The claims may be submitted to the Principal Chief General Manager, Department of Cooperative Bank Regulation, Reserve Bank of India, Central Office, C-7 Bandra Kurla Complex, 1st and 2nd Floor, Bandra (East), Mumbai – 400051.

(v) The reimbursement of interest equalisation claim will be made as and when the funds are received from Government of India.

Friday, 4 March 2016

Settlement of Export/ Import transactions in currencies not having a direct exchange rate.

To further liberalize the procedure and facilitate settlement of export and import transactions where the invoicing is in a freely convertible currency and the settlement takes place in the currency of the beneficiary, which though convertible, does not have a direct exchange rate, it has been decided that AD Category-I banks may permit settlement of such export and import transactions (excluding those put through the ACU mechanism), subject to conditions as under:

1. Exporter/ Importer shall be a customer of the AD Bank,

2. Signed contract / invoice is in a freely convertible currency,

3. The beneficiary is willing to receive the payment in the currency of beneficiary instead of the original (freely convertible) currency of the invoice/ contract/ Letter of Credit as full and final settlement,

4. AD bank is satisfied with the bonafides of the transactions, and;

The counterparty to the exporter / importer of the AD bank is not from a country or jurisdiction in the updated FATF Public Statement on High Risk & Non Co-operative Jurisdictions on which FATF has called for counter measures.

The Master Direction No. 16 of 2015-16 (on Export of Goods and Services) and Master Direction No. 17 of 2015-16 (on Import of Goods and Services) have been updated accordingly to incorporate the above changes.

Sovereign Gold Bonds- 2016 Series-II

Sovereign Gold Bonds- 2016 Series-II

Government of India has vide its Notification F.No. 4(19)-W&M/2014 dated March 04, 2016 announced that the Sovereign Gold Bonds, 2016 (“the Bonds”) will be open for subscription from March 8, 2016 to March 14, 2016. The Government of India may, with prior notice, close the Scheme before the specified period. The terms and conditions of the issuance of the Bonds shall be as follows:

1. Eligibility for Investment:

The Bonds under this Scheme may be held by a person resident in India, being an individual, in his capacity as such individual, or on behalf of minor child, or jointly with any other individual. The bond may also be held by a Trust, Charitable Institution and University. “Person resident in India” is defined under section 2(v) read with section 2(u) of the Foreign Exchange Management Act, 1999

2. Form of Security

The Bonds shall be issued in the form of Government of India Stock in accordance with section 3 of the Government Securities Act, 2006. The investors will be issued a Holding Certificate (Form C). The Bonds shall be eligible for conversion into de-mat form.

3. Date of Issue

Date of issuance shall be March 29, 2016.

4. Denomination

The Bonds shall be denominated in units of one gram of gold and multiples thereof. Minimum investment in the Bonds shall be two grams with a maximum limit of subscription of five hundred grams per person per fiscal year (April – March).

5. Issue Price

Price of the Bonds shall be fixed in Indian Rupees on the basis of the previous week’s (Monday – Friday) simple average closing price for gold of 999 purity, published by the India Bullion and Jewellers Association Ltd. (IBJA).

6. Interest

The Bonds shall bear interest at the rate of 2.75 percent (fixed rate) per annum on the amount of initial investment. Interest shall be paid in half-yearly rests and the last interest shall be payable on maturity along with the principal.

7. Receiving Offices

Scheduled commercial banks (excluding RRBs), designated Post Offices (as may be notified) and Stock Holding Corporation of India Ltd (SHCIL) are authorized to receive applications for the Bonds either directly or through agents.

8. Payment Options

Payment shall be accepted in Indian Rupees through Cash up to a maximum of Rs.20,000/- or Demand Drafts or Cheque or Electronic banking. Where payment is made through cheque or demand draft, the same shall be drawn in favour of receiving office.

9. Redemption

i) The Bonds shall be repayable on the expiration of eight years from February 8, 2016, the date of issue of Gold bonds. Pre-mature redemption of the Bond is permitted from fifth year of the date of issue on the interest payment dates.

ii) The redemption price shall be fixed in Indian Rupees on the basis of the previous week’s (Monday – Friday) simple average closing price for gold of 999 purity, published by IBJA.

10. Repayment

The receiving office shall inform the investor of the date of maturity of the Bond one month before its maturity.

11. Eligibility for Statutory Liquidity Ratio (SLR)

The investment in the Bonds shall be eligible for SLR.

12. Loan against Bonds

The Bonds may be used as collateral for loans. The Loan to Value ratio will be as applicable to ordinary gold loan mandated by the RBI from time to time. The lien on the Bonds shall be marked in the depository by the authorized banks.

13. Tax Treatment

Interest on the Bonds shall be taxable as per the provisions of the Income-tax Act, 1961. Capital gains tax treatment will be the same as that for physical gold.

14. Applications

Subscription for the Bonds may be made in the prescribed application form (Form ‘A’) or in any other form as near as thereto stating clearly the grams of gold and the full name and address of the applicant. The receiving office shall issue an acknowledgment receipt in Form ‘B’ to the applicant.

15. Nomination

Nomination and its cancellation shall be made in Form ‘D’ and Form ‘E’, respectively, in accordance with the provisions of the Government Securities Act, 2006 (38 of 2006) and the Government Securities Regulations, 2007, published in part III, Section 4 of the Gazette of India dated December 1, 2007.

16. Transferability

The Bonds shall be transferable by execution of an Instrument of transfer as in Form ‘F’, in accordance with the provisions of the Government Securities Act, 2006 (38 of 2006) and the Government Securities Regulations, 2007, published in part III, Section 4 of the Gazette of India dated December 1, 2007.

17. Tradability of bonds

The Bonds shall be eligible for trading from such date as may be notified by the Reserve Bank of India.

18. Commission for distribution

Commission for distribution shall be paid at the rate of rupee one per hundred of the total subscription received by the receiving offices on the applications received and receiving offices shall share at least 50% of the commission so received with the agents or sub-agents for the business procured through them.

19. All other terms and conditions specified in the notification of Government of India in the Ministry of Finance (Department of Economic Affairs) vide number F. No.4(13) W&M/2008, dated 8th October 2008 shall apply to the Bonds.

Grant of EDF Waiver for Export of Goods Free of Cost

Grant of EDF Waiver for Export of Goods Free of Cost:

1. The facility had been extended to the Status Holders vide para 2.52.1 of Handbook of Procedures- Vol-I of Foreign Trade Policy 2004-2009, in terms of which Status Holders shall be entitled to export freely exportable items on free of cost basis for export promotion subject to an annual limit of Rs 10 lakh or 2% of average annual export realization during preceding three licensing years, whichever is higher.

2. Government of India vide amendment Notification No. 9/2015-2020 dated June 4, 2015, has notified that the Status Holders shall be entitled to export freely exportable items on free of cost basis for export promotion subject to an annual limit of Rs 10 lakh or 2% of average annual export realization during preceding three licensing years whichever is lower.

AD Category – I banks may, therefore, consider requests from Status Holder exporters for grant of Export Declaration Form (EDF) waiver, for export of goods free of cost based on the revised norm.

Thursday, 3 March 2016

Mission "Indradhanush"

Government launches mission "Indradhanush" , to revamp the functioning of Public Sector Banks.

in order to revive the fortunes of public sector banks, government unveiled a seven-point plan encompassing Rs 20,000 crore immediate fund infusion, creation of a single holding company and minimising political interference.The government has named this as ‘Indradhanush’ that also includes setting up of a Bank Board Bureau (BBB) for broad-level appointments and a performance-based monitoring mechanism.

The strategy, Indradhanush (rainbow), focuses on systemic changes in state-run lenders, including a fresh look at hiring, a comprehensive plan to de-stress bloated lenders, capital infusion, accountability incentives with higher rewards including Stock Options and cleaning up governance.

The 7 Elements includes:
1. Appointments

2. Bank of Board Bureau

3. Capitalization

4. De-Stressing Public Sector Banks

5. Empowerment

6. Framework of accountability

7. Governance Reforms

1. Appointments : Executives from the private sector have been hired to run state-owned banks with the government.

2. Bank Board Bureau : The Bank Board Bureau will start functioning from the next financial year and is the first step toward a full-fledged bank holding company, an entity that will house the government's stake in state run banks struggling with mounting non-performing loans that have touched 6 per cent of gross advances.

3. Capitalization : The government will inject a total of Rs 25,000 crore of capital into debt-laden state banks in this fiscal; Rs 20,000 crore would be injected in a month. Over the next four years, the government plans to inject Rs 70,000 crore.

4. De-stressing : The government will concentrate on distressing the banks’ bad loans.

5. Empowerment : The government will strive to make it easier for PSBs to hire. The government is looking at introducing Employee Stock Ownership Plan (ESOPs) for the PSU bank managements.

6. Framework of Accountability : The government also announced a new framework of key performance indicators for state-run lenders to boost efficiency in functioning while assuring them of independence in decision making on purely commercial considerations.

7. Governance Reforms: The process of governance reforms started with “Gyan Sangam” - a conclave of PSBs and FIs organized at the beginning of 2015 in Pune which was attended by all stake-holders including Prime Minister, Finance Minister, MoS (Finance), Governor, RBI and CMDs of all PSBs and FIs. There was focus group discussion on six different topics which resulted in specific decisions on optimizing capital, digitizing processes, strengthening risk management, improving managerial performance and financial inclusion.

Bank Board Bureau:

Bank Board Bureau:

The announcement of the Bank Board Bureau (BBB) was made by Hon’ble Finance Minister in his Budget Speech for the year 2015-16. The BBB will be a body of eminent professionals and officials, which will replace the Appointments Board for appointment of Whole-time Directors as well as non-Executive Chairman of PSBs. They will also constantly engage with the Board of Directors of all the PSBs to formulate appropriate strategies for their growth and development. The structure of the BBB is going to be as follows; the BBB will comprise of a Chairman and six more members of which three will be officials and three experts (of which two would necessarily be from the banking sector). The Search Committee for members of the BBB would comprise of the Governor, RBI and Secretary (FS) and Secretary (DoPT) as members. The BBB would broadly follow the selection methodology as approved in relevant ACC guidelines. The members will be selected in the next six months and the BBB will start functioning from the 01st April, 2016.

Questions Asked in IV to V interview

What is a'Repo Rate'

Repo rate is the rate at which the central bank of a country (RBI in case of India) lends money to commercial banks in the event of any shortfall of funds.

Definition: Repo rate is the rate at which the central bank of a country (Reserve Bank of India in case of India) lends money to commercial banks in the event of any shortfall of funds. Repo rate is used by monetary authorities to control inflation.

Description: In the event of inflation, central banks increase repo rate as this acts as a disincentive for banks to borrow from the central bank. This ultimately reduces the money supply in the economy and thus helps in arresting inflation.

The central bank takes the contrary position in the event of a fall in inflationary pressures. Repo and reverse repo rates form a part of the liquidity adjustment facility.

What is a 'Reverse Repo Rate'

Reverse repo rate is the rate at which the central bank of a country (RBI in case of India) borrows money from commercial banks within the country.

Definition: Reverse repo rate is the rate at which the central bank of a country (Reserve Bank of India in case of India) borrows money from commercial banks within the country. It is a monetary policy instrument which can be used to control the money supply in the country.

Description: An increase in the reverse repo rate will decrease the money supply and vice-versa, other things remaining constant. An increase in reverse repo rate means that commercial banks will get more incentives to park their funds with the RBI, thereby decreasing the supply of money in the market.

What is a 'Bank Rate'

Bank rate is the rate charged by the central bank for lending funds to commercial banks.

Definition: Bank rate is the rate charged by the central bank for lending funds to commercial banks.

Description: Bank rates influence lending rates of commercial banks. Higher bank rate will translate to higher lending rates by the banks. In order to curb liquidity, the central bank can resort to raising the bank rate and vice versa. . Marginal standing facility is a window for banks to borrow from the Reserve Bank of India in an emergency situation when inter-bank liquidity dries up completely.

What is a "Marginal standing facility (MSF)"

Definition: Marginal standing facility (MSF) is a window for banks to borrow from the Reserve Bank of India in an emergency situation when inter-bank liquidity dries up completely.

Description: Banks borrow from the central bank by pledging government securities at a rate higher than the repo rate under liquidity adjustment facility or LAF in short. The MSF rate is pegged 100 basis points or a percentage point above the repo rate. Under MSF, banks can borrow funds up to one percentage of their net demand and time liabilities (NDTL).

What is the 'Call Money Rate'

The call money rate is the interest rate on a type of short-term loan that banks give to brokers who in turn lend the money to investors to fund margin accounts. For both brokers and investors, this type of loan does not have a set repayment schedule and must be repaid on demand.

BREAKING DOWN 'Call Money Rate'

Trading on margin is a risky strategy in which investors make trades with borrowed money. The advantage of margin trading is that investment gains are magnified; the disadvantage is that losses are also magnified. When investors trading on margin experience a decline in equity past a certain level relative to the amount they have borrowed, the brokerage will issue a margin call that requires them to deposit more cash in their account or to sell enough securities to make up the shortfall.

(Inputs from Economic Times,rbi,other financial sights)

Wednesday, 2 March 2016

'Waterfall Payment'

What is a 'Waterfall Payment'

Definition-1

A waterfall payment is a type of payment scheme in which higher-tiered creditors receive interest and principal payments, while the lower-tiered creditors receive only interest payments. When the higher tiered creditors have received all interest and principal payments in full, the next tier of creditors begins to receive interest and principal payments.

Definition-2

A contractual loan repayment plan established by a debtor organization that prioritizes payments to multiple creditors based on the size or expense of the loan. Debtors will cascade their loans in a way that eliminates the more expensive loans with larger principal payments while making minimum interest payments to the less expensive loans.

Definition-3

A waterfall payment is a repayment system by which senior lenders receive principal and interest payments from a borrower first, and subordinate lenders receive principal and interest payments after.

How it works (Example):

Imagine the cash generated by a company as a waterfall that flows from senior lenders down to subordinate lenders.

For example, let's assume that ABC Company has borrowed Rs.100 million from Lender A and Lender B. Lender A is "senior" and Lender B is "subordinate." If ABC Company is required to make waterfall payments, Lender A must be paid all its obligations before Lender B gets anything.

Assume that ABC Company must pay Lender A Rs 5 million in interest and Rs10 million in principal, and ABC Company must also pay Lender B Rs 4 million in interest and Rs 9 million in principal each year.

Assuming that ABC Company is able to generate at least Rs 31 million in cash with which it pays its lenders, there is no problem. But if ABC Company only makes Rs25 million one year, it must pay Lender A all Rs15 million in interest and principal, leaving only Rs10 million for Lender B. Because Lender B is farther down the waterfall, its loan is at greater risk of not getting paid in full. The "water," i.e. the cash, will get diverted to Lender A until ABC Company's obligations are fulfilled.

Why it Matters:

Waterfall payments are common for borrowers with several tranches of debt. It protects lenders who are higher up in the debt structure.

The waterfall concept can also be used in the personal finance world as well. The idea is that a person should repay the most expensive debt first.

For example, let's assume that Ram has three credit cards: Card A, Card B and Card C. The interest rates on the cards are 20%, 12% and 10%, respectively. Ram wants to get out of credit card debt, so he decides to pay down the highest interest-rate card first. The minimum monthly payments on the cards are Rs15000, Rs10000 and Rs7500, respectively. Ram makes waterfall payments. First, he pays the minimum on each card (Rs32500 total) every month, and then sends Card A an extra Rs80000. When Card A is finally paid off, he cuts it up and then applies the extra Rs 80000 per month, plus the Rs15000 monthly payment he used to send to Card A (Rs95000 in total) to Card B. When Card B is paid off, Ram applies the Rs80000 in extra payments plus the Rs25000 minimum payment he used to send to Cards A and B (Rs105,000 in total) to Card C until it is paid off.

Basel III Capital Regulations - Revision

Master Circular – Basel III Capital Regulations - Revision

Please refer to Master Circular DBR.No.BP.BC.1/21.06.201/2015-16 dated July 1, 2015 on ‘Basel III Capital Regulations’. The treatment of certain balance sheet items, as per the extant regulations on banks’ capital, differs from what is prescribed by the Basel Committee on Banking Supervision (BCBS). It has also been represented to the Reserve Bank that the current framework places on the banks in India the need to raise more capital than would be required had the Basel rules been applied as they are. The Reserve Bank has reviewed the position in this regard and it has been decided to align, to some extent, the current regulations on treatment of these balance sheet items, for the purpose of regulatory capital, with the BCBS guidelines. Accordingly it has been decided as detailed herein below:

2.1 Treatment of revaluation reserves

Revaluation reserves arising out of change in the carrying amount of a bank’s property consequent upon its revaluation may, at the discretion of banks, be reckoned as CET1 capital at a discount of 55%, instead of as Tier 2 capital under extant regulations, subject to meeting the following conditions:

bank is able to sell the property readily at its own will and there is no legal impediment in selling the property;

the revaluation reserves are shown under Schedule 2: Reserves & Surplus in the Balance Sheet of the bank;

revaluations are realistic, in accordance with Indian Accounting Standards.

valuations are obtained, from two independent valuers, at least once in every 3 years; where the value of the property has been substantially impaired by any event, these are to be immediately revalued and appropriately factored into capital adequacy computations;

the external auditors of the bank have not expressed a qualified opinion on the revaluation of the property;the instructions on valuation of properties and other specific requirements as mentioned in the circular DBOD.BP.BC.No.50/21.04.018/2006-07 January 4, 2007 on ‘Valuation of Properties - Empanelment of Valuers’ are strictly adhered to.

2.2 Treatment of foreign currency translation reserve (FCTR)

Banks may, at their discretion, reckon foreign currency translation reserve arising due to translation of financial statements of their foreign operations in terms of Accounting Standard (AS) 11 as CET1 capital at a discount of 25% subject to meeting the following conditions:

the FCTR are shown under Schedule 2: Reserves & Surplus in the Balance Sheet of the bank;the external auditors of the bank have not expressed a qualified opinion on the FCTR.

2.3 Treatment of deferred tax assets (DTAs)

(i) Deferred tax assets (DTAs) associated with accumulated losses and other such assets should be deducted in full from CET1 capital.

(ii) DTAs which relate to timing differences (other than those related to accumulated losses) may, instead of full deduction from CET1 capital, be recognised in the CET1 capital up to 10% of a bank’s CET1 capital, at the discretion of banks [after the application of all regulatory adjustments mentioned from paragraphs 4.4.1 to 4.4.9(C)(ii) of the Master Circular].

(iii) Further, the limited recognition of DTAs as at (ii) above along with limited recognition of significant investments in the common shares of unconsolidated financial (i.e. banking, financial and insurance) entities in terms of paragraph 4.4.9.2(C) (iii) of the Master Circular taken together must not exceed 15% of the CET1 capital, calculated after all regulatory adjustments set out from paragraphs 4.4.1 to 4.4.9 of the Master Circular. Please refer to the Annex of this circular clarifying this applicable limited recognition. However, banks shall ensure that the CET1 capital arrived at after application of 15% limit should in no case result in recognising any item more than the 10% limit applicable individually.

(iv) The amount of DTAs which are to be deducted from CET1 capital may be netted with associated deferred tax liabilities (DTLs) provided that:

both the DTAs and DTLs relate to taxes levied by the same taxation authority and offsetting is permitted by the relevant taxation authority;the DTLs permitted to be netted against DTAs must exclude amounts that have been netted against the deduction of goodwill, intangibles and defined benefit pension assets; and the DTLs must be allocated on a pro rata basis between DTAs subject to deduction from CET1 capital as at (i) and (ii) above.

(v) The amount of DTAs which is not deducted from CET1 capital (in terms of para (ii) above) will be risk weighted at 250% as in the case of significant investments in common shares not deducted from bank’s CET1 capital as indicated in paragraph 4.4.9 (C)(iii) of the Master Circular.

3. These instructions are applicable with immediate effect.

Wednesday, 10 February 2016

Issuance of EMV Chip and PIN Cards

THE RBI HAS GRANTED EXTENSION FOR ISSUANCE OF ALL NEW EMV CHIP. AND PIN CARDS-

1. FOR CARDS ISSUED UNDER PMJDY / BASIC SAVING BANK DEPOSIT ACCOUNT ETC- THE TIME IS EXTENDED UPTO 30-09-2016 AND

2. FOR ALL OTHER CARDS THE PERIOD HAS BEEN EXTENDED UPTO 31-01-2016.

3. FURTHER, THE MAGNETIC STRIP CARDS ISSUED WOULD HAVE TO BE REPLACED BY 31-12-2018. IRRESPECTIVE OF THE VALIDITY PERIOD OF THE CARDS,

Tuesday, 9 February 2016

Lending / Deposit Rates

Base Rate : 9.30% - 9.70%

Savings Deposit Rate : 4.00%

Term Deposit Rate > 1 Year : 7.00% - 7.90%

Policy Rates

Policy Rates

Policy Repo Rate : 6.75%

Reverse Repo Rate : 5.75%

Marginal Standing Facility Rate : 7.75%

Bank Rate : 7.75%

CRR : 4%

SLR : 21.5%

Monday, 8 February 2016

Definition of "Currency"

Definition of "Currency"

Debit cards, ATM cards or any other instrument which can be

used to create a financial liability may be defined as currency.

In pursuance of clause (h) of Section 2 of the Foreign Exchange Management Act, 1999 (42 of 1999), and in supersession of Notification No. FEMA 15/2000-RB dated May 3, 2000, as amended from time to time, the Reserve Bank notifies debit cards, ATM cards or any other instrument by whatever name called that can be used to create a financial liability, as ‘currency’.

Sunday, 7 February 2016

COMPUTER TEST QUESTIONS FOR IV TO V AND III TO IV PROMOTION

51. As per RBI latest instructions to the banks, banks have to ensure that CTS compliant cheque bokks are issued to all customers across all locations latest by:

(a) 31.03.2012 (b) 30.06.2012 (c) 30.09.2012

(d) 31.03.2013 (e) 31.12.2012

52. In a network, the computer that stores the files and process the data is called:

(a) Server (b) Terminal (c) Modem (d) All of the above

(e) either (a) or (b)

53. Viruses are so called because:

(a) They are viruses (b) They can copy themselves and spread

(c) Both (a) and (b) (d) None of the above

54. Which of the following can't spread virus?

(a) An e-mail with attachment (b) A plain text mail

(c) Downloading files over the web (d) None of the above

55. There is a new anti-virus software update available which is downloaded to your computer

(a) everyday (b) only in the night

(c) When you next switch on your computer (d) All of the above

56. Numbers are stored and transmitted inside a computer in:

(a) Binary form (b) ASCII code form (c) Alphabets form

(d) Numerical form (e) None of these

57. CPU capacity can be measured in:

(a) BPS (b) MIPS (c) MHz (d) MPI (e) None of these

58. MPIS stands for

(a) Million Instructions Per Second (b) Million Instructions Per Season (c) Monthly Instructions Per Second (d) Million Inputs Per Second

59. LAN speeds are measured in:

(a) BPS (b) KBPS (c) MBPS (d) MIPS (e) none of these

60 Modem speeds are measured in:

(a) BPS (b) KBPS (c) MBPS (d) MIPS (e) none of these

61. BPS stands for:

(a) Bits Per Second (b) Bits Per Season (c) Bytes Per Second

(d) Bits Per System (e) None of these

62. In cheque processing which of the following I/O techniques have banks traditionally been followed?

(a) OCR (b) MICR (c) Barcode (d) VRT (e) CTS

63. The object of UPS is:

(a) using for storage (b) increasing the speed of a computer

(c) Providing backup power (d) All of the above (e) only (a) and (c) above

64. QWERTY is used with reference to :

(a) Monitor (b) Printer (c) Keyboard (d) Mouse (e) All of these

65. "Zipping" a file means:

(a) Encrypting the message (b) Compressing the message

(c) Transfer the message (d) All of the above

66. Integrated Circuits (IC) chips used in computers are made of:

(a) Gold (b) Silver (c) Silicon (d) Copper (e) Cobalt

67. 16. What is the name of the Super Computer developed in India?

(a) CRAY (b) PARAM (c) Both (a) and (b) (d) None of the above

68. Pick the odd man out of the following :(Which is different from others)

(a) Internet (b) Windows (c) Unix (d) Linux (e) none of these

69. What is the full form of WWW?

(a) World Wide Web (b) World With Web

c) Work Wide Web (d) World Wide Wet (e) None of these

70. Which of the following Command is required to reboot the computer?

(a) CTRL+ALT+DEL (b) CTRL+ALT+TAB

(c) CTRL+ALT+SHIFT (d) CTRL+SHIFT+DEL (e) none of these

71. Pick the odd man out of the following :(Which is different from others)

(a) Operating system (b) Interpreter (c) Compiler

(d) Assembler (e) none of the above

72. PC stands for

(a) Practical Computer (b) Personal Computer (c) Private Computer (d) Personal Contact (e) Personal Comprehension

73. The computer code for interchange of information between terminals is (a) BCDIC (b) BCD (c) ASCII (d) None of the above

74. The retrieval of information from the computer is called:

(a) Data processing (b) Input (c) Output (d) All of the above (e) either (b) or (c) above

75. Which one of the following is NOT a computer language?

(a) MS-Excel (b) BASIC (c) COBOL (d) C++

76. "C" is

(a) A letter (b) A word (c) A language (d) An alphabet

77. Difference Engine was invented by:

(a) Charles Babbage (b) John McCarthy (c) Pascal

(d) Newton (e) none of these

78. First generation computer systems used:

(a) Transistors (b) Vacuum Tubes (c) Both (a) and (b)

(d) None of the above

79. A byte is made up of

(a) Eight bytes (b) Eight binary digits (c) Two binary digits

(d) Two decimal points

80. Doing research by using an on-line database instead of a printed set of similar information offers which of the following advantage(s) ?

(a) More current information (b) Easier to understand

(c) Better charts (d) None of the above

81. Software programs that allow you to legally copy files and give them away at no cost are called :

(a) Time sharing (b) Public domain (c) Shareware

(d) None of the above

82. The term used to describe physical components of the system is :

(a) Hardware (b) Input (c) Software (d) None of the above

83. Which of the following is used to indicate the location on the computer monitor?

(a) Mouse (b) Cursor (c) Both (a) and (b) (d) None of the above

84. If you intend designing an invitation card, the computer program suitable for the purpose will be

(a) MS-Word (b) Desktop Publishing (c) Simulation

(d) None of the above

85. Which combination of keys needs to be pressed to make a percent sign?

(a) Shift+2 (b) Shift+3 (c) Shift+4 (d) Shift+5

86. What process should be used to recall a document saved previously?

(a) Copy (b) Save (c) Retrieve (d) Enter

87. What term applies to a collection of related records in a database?

(a) Field (b) File (c) Both (a) and (b)

(d) None of the above

88. How are data organized in a spreadsheet?

(a) Rows and Columns (b) Boxes (c) Tables (d) None of the above

89. Which of the following mode we use to deliver e-mail ?

(a) Postal (b) Courier (c) Computer (d) Fax (e) None of these

90. VIRUS stands for

(a) Vital Information Recourse Under Siege

(b) Vital Information Reason Under Siege

(c) Vital Information Recourse Under System

(d) Virus Information Recourse Under Siege

91. ------ Is known as unauthorized access into others system.

(a) Hacking (b) Encryption (c) Decryption (d) None of the above

92. Inbuilt storage device of a computer is referred to as:

(a) floppy (b) compact disc (c) hard disk (d) any of these (e) none of these

93. The process of transforming plaintext data into an unintelligible form such that the original data either cannot be recovered or cannot be recovered without using an inverse process is called:

(a) securitization(b) rematerialisation (c) dematerialization

(d) encryption (e) none of these

94. NEFT stands for:

(a) National Equity Fund Trading (b) National Electronic Funds Transfer (c) Normal Exchange Fed Trading (d) National Euro Finance Terminals

(e) none of these

95. Firewall protects the computer from the risk of:

(a) data mining (b) data duplexing (c) mother board crash (d) hacking (e) none of the above

96. The reporting of currency chest operations is done through:

(a) INDONET (b) NICNET (c) INET (d) SWIFT (e) INFINET

97. The committee on technology issues relating to payment systems, cheque clearing and security settlement was headed by:

(a) W.S.saraf (b) Y.B.Damle (c) S.S.Tarapore

(d) Dr. C. Rangarajan (e) K.S.Shere

98. The working group to give recommendations in the area of cheque truncation and e- cheque was headed by:

(a) Dr. N.L.Mitra (b) B.D. Narang (c) Dr. Burman (d) Zarir Cama (e) none of these

99. The first bank in India to launch credit card was:

(a) SBI (b) Central Bank of India (c) BOB (d) PNB

(e) Syndicate Bank

100. Star, Ring and Bus topologies are related to:

(a) CBS (b) ATM (c) Networking layouts (d) all of these

(e) none of these

101. The network topology in which there are bidirectional links between possible mode is:

(a) Ring (b) Star (c) Tree (d) bus (e) none of these

102. The most common method being used by banks to transfer funds from one place to another is called:

(a) EDI (b) Fax (c) Internet (d) TT (e) none of these

103. As at end-January 2015 the number of branches having NEFT facility was around:

(a) 128155 (b) 55000 (c) 81500 (d) 37,600 (e) 43,700

104. Copy printed through computer printer is called -----copy.

(a) hard (b) soft (c) paper (d) ancillary (e) none of the above

105. Route adopted by large companies for payment of dividends to shareholders is called

(a)ECS Debit (b) RTGS (c) ECS Credit (d) either (b) or(c)

(e) either (a) or (c)

106. The way in which computer devices are interconnected is referred to as:

(a) modem (b) network (c) LAN (d) topology (e) either (a) or (c)

107. High Level Committee for Preparation of the Information Technology Vision Document 2011-2017 was headed by:

(a) Dr. C. Rangarajan (b) Dr K.C.Chakrabarty (c) Dr Bimal Jalan (d) Dr. K.P.Krishnan (e) Dr. K.G. Karmakar

108. The technique to reveal strategic information stored in data warehouse is called:

(a) data analysis (b) data processing (c) data search (d) data mining (e) none of these

109. Full form of WAN is:

(a) Wide Area Network (b) Widely Acclaimed Negotiator

(c) Wide Artificial network (d) Wide Arabic Network (e)none of these

110. An information system that immediately responds to the physical systems is called:

(a) Live system (b) On-line System (c) Off-line system (d) Real time system (e) none of these

111. MICR is a cheque clearing technology used by banks. It stands for:

(a) Magnetised Instruments Clearing Reader (b) Magnetic Ink Character Reader (c) Magnetic Ink Character Recognition

(d) Mobile Insulated Character Recognition (e) none of these

112. Digital signals are converted into analog signals at the transmitting end by: (a) Digital signature (b) UPS (c) Modem (d) Multiplexer (e) none of these

113. Stand alone computer system which is best suited for decision making process involving processing and analysis of data is also referred to as:

(a) modem (b) work station (c) node (d) either (a) or (b)

(e) either (b) or (c)

114. Super computers, main-frame computers and mini computers fall in the category of: (a) Stand alone computers (b) Multi user computers (c) LAN (d) WAN (e) none of these

115. Working Group on information security, electronic banking, technology risk management, and cyber frauds which submitted its report in January, 2011 was headed by:

(a) B.D.Narang (b) Dr. C.Rangarajan (c) Dr. G.Gopalakrishna (d) P.Vijayabhaskar (e) Dr. K.C.Chakrabarty

116. Society for Worldwide Inter-bank Financial Telecommunications (SWIFT) was founded by -----banks spread over 15 countries.

(a) 123 (b) 512 (c) 102 (d) 239 (e) none of these.

117. The automated clearing system of UK is called:

(a) CHIPS (b) CHAPS (c) CHATS (d) MICE (e) none of these

118. Number of devices supported by LAN can be maximum:

(a) 7 (b) 12 (c) 100 (d) 1000 (e) 25

119. Device called modem was invented by:

(a) Microsoft (b) Apple Computers (c) Intel Corporation d) AT&T Information Systems (e) Infosys Technologies

120. Full form of SPNS is:

(a) Shared Payment Network System

(b) Synchronized Payment Network system

(c) Swift payment Negotiated settlement (d) Shared Protocol Network System (e) none of these

121. As the data stored in a computer is vulnerable to loss, at the end of the day it is generally downloaded on a CD or floppy. The process is called:

(a) data storage (b) data transmission (c) backup (d) RAM (e) none of these

122. A computer system consists of several devices like CPU, monitor, mouse etc. Together they are called:

(a) computer peripherals (b) computer components (c) computer bits (d) computer equipments (e) none of the above

123. Which of the following is not covered under computer related crimes?

(a) data spying b) data didling (c) data mining (d) data duplexing (e) none of these

124. When a number of computers are connected to a CPU in the same building it is called:

(a) WAN (b) LAN (c) RAM (d) Off site network (e) none of these

125. Feeding of data into computer system is called

(a)Input (b) output (c) booting (d) skimming (e) none of these

126. Institute for Development & Research in Banking Technology has advised all banks to allot IFSC to all their branches and inform them the same so that IFSC directory can be compiled. IFSC stands for:

(a) International Financial System Code

(b) Indian Financial System Code (c) Intra bank Financial System Code d) International Financial Synchronizing Code (e) None of these

127. The working group on Electronic money was headed by:

(a) Damle (b) S.S.tarapore (c) Zarir Cama (d) Dr. Barman (e) none of these

128. India’s largest wide area network is:

(a) INDONET (b) NICNET (c) INET (d) SWIFT (e) none of these

129. In which of the following topology system, the breakdown of one station can disable the entire network?

(a) Star (b) Ring (c) Bus (d) all of these (e) none of these

130. Starting the computer and loading the files is called:

(a) processing (b) booting (c) input (d) output (e) truncation

131. IFSC consists of a 11 digit code with the first ----- alpha characters representing the bank, and the last 6 numeric characters representing the branch.

(a) 3 (b) 5 (c) 4 (d) 2 (e) 6

132. As per Information Technology Act, 2000 the key to verify the source of electronic message, its integrity and non-repudiation is called:

(a) truncation (b) synchronization (c) encryption

(d) digital signature (e) none of these

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