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Banking Awareness Quiz For IBPS, RBI & Insurance Exam

Q1. In the field of banking, what does ADF stand for? (a) Additional Dearness Allowance (b) Automated Data Flow (c) Additional Deposit Allowance (d) Automated Deposit Allowance (e) None of the given options is true Q2. Which of the following is governed by the provisions of Section 42 (1) of …

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Vostro, Nostro, Lorro Account In Detail

Vostro, Nostro, Lorro Account In Detail One of the important questions asked in bank interviews and banking awareness section of various banking exams is about types of Foreign currency accounts. Types of Foreign Currency accounts   NOSTRO Account NOSTRO Account means OUR account with YOU in Italian. If SBI maintained an account …

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IPO & FPO In Detail

IPO & FPO In Detail What is an ‘Initial Public Offering – IPO’ An initial public offering (IPO) is the first time that the stock of a private company is offered to the public. IPOs are often issued by smaller, younger companies seeking capital to expand, but they can also be done …

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UPI, IMPS, MMID In Detail

UPI, IMPS, MMID In Detail Unified Payment Interface -Future of Payments in India Introduction: We are seeing the tide which is rapidly moving towards a cashless economy or say digital money. It is really a boost to the economy where mobile wallets are increasing and e- commerce transactions are becoming …

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Debit & Credit Cards In Details

Debit & Credit Cards In Details Cards can be classified based on their usage, issuance, and payment by the cardholders. There are three types of cards- 1. Debit cards 2. Credit Cards 3. Prepaid Card Debit Cards A debit card can be used to withdraw cash up to the customer’s bank …

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IFSC Code, MICR Code, SWIFT Code In Detail

IFSC Code, MICR Code, SWIFT Code In Detail IFSC (Indian Financial System Code) Is is an alphanumeric code that uniquely identifies a bank-branch participating in the two main Electronic Funds Settlement Systems in India: the Real Time Gross Settlement (RTGS) and the National Electronic Funds Transfer (NEFT) Systems. It is an 11-character …

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ATM, NEFT, RTGS, AEPS, MTSS, ECS In Detail

ATM, NEFT,RTGS,AEPS,MTSS,ECS In Detail What is an ‘Automated Teller Machine – ATM’ An automated teller machine (ATM) is an electronic banking outlet, which allows customers to complete basic transactions without the aid of a branch representative or teller. Anyone with a credit card or debit card can access most ATMs. The first ATM appeared …

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Cheques & Its Types

Cheques & Its Types A cheque is an unconditional order addressed to a banker, signed by the person who has deposited money with a banker, requesting him to pay on demand a certain sum of money only to the order of the certain person or to the bearer of the …

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Mutual Funds & Shares in Detail

Mutual Funds & Shares Mutual Fund – Concept, Structure and Types Published on Tuesday, March 01, 2016 Mutual Fund is an investment plan wherein MF pools investors money to invest in pre-determined goals for capital appreciation. Benefits of Mutual Funds It’s safe No need to stay updated with market movements Experts manages …

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Money Market and Capital Market Notes

Money Market and Capital Market Notes Financial Market Financial market is the market that facilitates transfer of funds between investors/ lenders and borrowers/ users. Financial market may be defined as ‘a transmission mechanism between investors (or lenders) and the borrowers (or users) through which transfer of funds is facilitated’. It consists of …

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Insurance & Bancassurance

Insurance & Bancassurance History of Indian Insurance Industry 1st company to offer Life Insurance was Amicable Society Location – London Year of Establishment – 1706 Founder – William Talbot and Sir Thomas Allen Following types of Insurance: Self Insurance– Where risk is not transferred to insurance companies and alone retained …

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Financial Inclusion

Financial Inclusion – A Way Forward To Inclusive Development   Financial inclusion is buzz word today in Indian banking sector So what is financial inclusion and how it is important .Financial inclusion is the initiative of the government of India ,RBI and banks to provide basic banking services to all …

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Banking Ombudsman Scheme

Banking Ombudsman Scheme   What is Banking Ombudsman (BO)? He hears customers’ complaints against banks. BO was first setup in UK. In India, RBI started this scheme in 1995.   Appointment & Tenure Earlier RBI used to appoint reputed persons from banking, finance, management, legal etc. sectors as Banking Ombudsmen …

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Budget

Budget Introduction – It is a statement of estimated receipts and expenditure of the government of India for the following financial year – 1st April to 31st March The word ‘Budget’ is derived from the French word ‘bougette’ meaning a little bag to carry money or a small purse. This …

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Indian Economy

Indian Economy Economy before British Rule To understand the present level of the Indian economy, it is important to understand the economic system of India during the British rule and post-independence economic development policies. Before the advent of British rule, India had an independent economy. It was largely primary sector …

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GST (Goods and Services Tax) In Detail

GST (Goods and Services Tax) In Detail The midnight of 30th June, 2017 was a revolutionary one in the history of the Indian economy after the Economic Liberalization of 1991 because that is the day when the Goods and Services Tax came into existence after a lot of debate over …

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Cooperative Banks,Foreign Banks,Apex Bank,SIDBI, IFCI, NHB, NACH In Details

Cooperative Banks,Foreign Banks,Apex Bank,SIDBI, IFCI, NHB, NACH In Details Cooperative Banks Co-operative Banks are government supported financial agency in India, which are organized and managed with the dictum of co-operation, self-help and mutual help. It functions with the “no profit and no loss” model. As other banks in the country, …

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NPA and Its Recovery

NPA and Its Recovery NPA – Non Performing Assets If the status of NPAs in banks is not controlled, banks can become bankrupt. The entire credit distribution structure of the economy can be destructed and the country could be in a major financial turmoil. Know About NPA – An asset …

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RRB & RRB Act in Detail

RRB & RRB Act Regional Rural Banks (RRBs) were set up as government-sponsored, regional based rural lending institutions under the Regional Rural Banks Act, 1976. RRBs were configured as hybrid micro banking institutions, combining the local orientation and small scale lending culture of the cooperatives and the business culture of …

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Monetary Policy

Monetary Policy   Monetary policy refers to the use of monetary instruments under the control of the central bank to regulate magnitudes such as interest rates, money supply and availability of credit with a view to achieving the ultimate objective of economic policy. Monetary policy refers to the policy of …

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INROADS (Indian Risk-Oriented and Dynamic Rating System)

INROADS (Indian Risk-Oriented and Dynamic Rating System) The Reserve Bank of India (RBI) has decided to change the way it monitors and supervises banks in order to make the process more forward-looking. The move comes against the backdrop of the risks that have emerged after the global financial crisis of …

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CAMELS Rating System

CAMELS Rating System What is the ‘CAMELS Rating System’ The CAMELS rating system is a recognized international rating system that bank supervisory authorities use in order to rate financial institutions according to six factors represented by the acronym “CAMELS.” Supervisory authorities assign each bank a score on a scale, and …

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Overdraft : Defination | Advantages | Disadvantages

Overdraft : Defination | Advantages | Disadvantages What is an ‘Overdraft’ An overdraft is an extension of credit from a lending institution when an account reaches zero. An overdraft allows the individual to continue withdrawing money even if the account has no funds in it or not enough to cover …

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Current account & Saving account

Current account & Saving account Demand Deposits Current Accounts Savings Accounts together are known as demand deposit, since they are payable on demand. What is a Savings Account? A Savings Account is the most common type of bank account. Almost every person you know will have a Savings Account or two. You …

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RBI : Its functions & Role

RBI : Its functions & Role The Reserve Bank of India was established in the year 1935 in accordance with the Reserve Bank of India Act, 1934. The Reserve Bank of India is the central Bank of India entrusted with the multidimensional role. It performs important monetary functions from issue of …

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