Banking and Financial News – 18 June 2014

Arun Jaitley unveils anti-inflationary measures to contain price rise (Mint)

• State governments asked to crack down on hoarders and fixing minimum export prices for onions and potatoes to discourage exports and increase local supply.

• The wholesale price inflation (WPI) accelerated in May at the quickest pace since December.

• States have been asked to delist certain items, which are usually procured through agriculture produce marketing committees (APMC), so that they come into the open market.

Former Chief Justice RC Lahoti chosen arbitrator in Vodafone tax dispute (Mint) - India has named former Supreme Court chief justice R.C. Lahoti as the arbitrator in the Rs.20,000-crore tax dispute with Vodafone Group Plc. The tax dispute between the Indian government and Vodafone arose over the capital-gains tax related to the telecom company’s 2007 acquisition of Hutchison Whampoa Ltd’s Indian telecom assets.

Banking and Financial News – 17 June 2014

Payments banks to come soon: RBI – (Mint)

• India’s first payments bank, which will provide deposit and payment services but not extend loans, will be ready soon.

• Payments banks, which will bring financial services to unbanked areas of the country, can start operations with a capital of just Rs.50 crore.

• All their money will be invested in safe government securities.

• They will be required to comply with all RBI guidelines for commercial banks.

• Existing banks may be permitted to create subsidiaries to operate payments banks.

• Payments banks may be created by converting prepaid payment issuers (PPIs). PPLs provide cards that customers can use to make payments with the money stored in them. E.g. Itz Cash Card Ltd, Oxigen Services (India) Pvt. Ltd and Airtel mCommerce Services Ltd.

• Entry of payments banks is seen as a step closer to moving towards a differentiated banking licence regime, where the central bank issues licences to new banks to undertake specific banking operations.

Tax Administration Reforms Commission Recommendations (The Hindu)

(Headed by Parthasarathi Shome)

• Retrospective amendments to tax laws should be avoided.

• Income Tax return should include Wealth Tax details.

• Separate budget allocation to ensur time bound tax refund.

• Passbook scheme for TDS (Tax deducted at source)

• Abolish post of Revenue Secretary- allocate Revenue dept functions to CBDT (Central Board of Direct Taxes) & CBEC (Central Board for Excise & Customs) and both these boards to eventually merge into Central Board of Direct & Indirect taxes.

• Broaden the use of PAN (Permanent Account Number)

Without trust, honesty & loyalty all your friendships will turn to dust, be a friend worth having, be a light in the sky. ~ Anonymous

Courtesy : Mint , The Hindu
 

Banking and Financial News

Forex Reserves (The Hindu) – stands at US$ 313.536 b on 13 Jun 2014.

Panel suggests exempting NRIs’ non-repatriable investments from FDI limits

(The Hindu) - A panel headed by finance secretary Arvind Mayaram and set up in 2013 to rationalize the definition of FDI and foreign institutional investment (FII) has suggested.

• treating non-repatriable investments by non-resident Indians (NRIs) as domestic investment,
• exempting it from foreign direct investment (FDI)-related conditions,
• simplifying the classification of foreign investment with a carve-out for NRIs within it “in view of their special status”.
• that foreign investment of 10% or more through eligible instruments made in an Indian-listed company be treated as FDI, while such investment by way of equity shares, compulsorily convertible preference shares or debentures amounting to a less than 10% stake be treated as FPI.
• Foreign investment in an unlisted company, irrespective of threshold limit, may be treated as FDI.

RBI Allows Foreigners to Access Forex Futures, Eases Norms for Banks

(NDTV Profit) - RBI has set a limit of $10 million on banks' proprietary positions in exchange-traded currency futures and also allowed foreign portfolio investors to hedge their currency risk without any underlying up to the same limit. "An FPI (foreign portfolio investor) cannot take a short position beyond $10 million at any time and to take a long position beyond $10 million in any exchange, it will be required to have an underlying exposure," the release said.

Banking and Financial News – 16 June 2014

De-jargoned: Talking ATMs - RBI on 21 May notified all scheduled commercial banks to deploy only “talking ATMs” starting 1 July and also provide a plan to convert all the existing ATMs into talking ATMs with Braille keypads. Talking ATMs is a part of the set of directives issued by the central bank to make ATMs friendly for differently-abled users. Other directives include building ramps for wheelchair users, lower-height ATMs, and providing magnifying glasses for those with poor vision. (liveMint)

Beliefs have the power to create and the power to destroy. ~ Tony Robbins

 

Banking and Financial News – 13 June 2014

Forex Reserves Up at $312.5 Billion as of June 6 - After declining for two consecutive weeks, India's forex reserves rose by $203.2 million to $312.585 billion in the week to June 6 on the back of gain in currency assets.

Pilot Scheme to allow drawals from semi-closed mobile wallets – RBI has kicked off a pilot project that will allow a few mobile payment providers to test cash withdrawal facilities for a small portion of their semi-closed mobile wallet users. Sender’s and Receiver’s wallets will be seeded with Aadhar number. On the transfer of money, Receiver, who does not have a bank account, goes to an mRUPEE outlet, establishes his identity and draws the cash. (The Hindu)

(Study Material) SBI Clerk Examination

• Reasoning

• English

SBI PO TEST – Banking Awareness – Practice Test II

01. A borrower who has availed of a loan from the Bank, is not a Consumer, as per the Consumer Protection Act. Yes / No ?

02. What is the date for complete implementation of Basel III norms by banks in India?

03. What is a Whiteline ATM ?

04. In March 2014, which bank introduced for the first time in India, a facility which allows a person not holding an ATM card, to withdraw cash from its ATMs?

05. As of March 2014, which Bank proposed to issue Basel III compliant bonds in overseas markets, the first such issue out of India ?

06. Approximately, how much is India’s Foreign Exchange Reserves? Pick the correct option.

A. $ 1 trillion B. $ 600 billion C. $ 300 billion D. $ 150 billion

07. When Foreign Investors buy large number of shares in the Indian Stock Exchanges, what happens to the value of the Indian Rupee ? (Pick the correct option.)

A. Not Affected B. Increases C. Decreases D. Can’t say

08. In terms of value, Crude Oil is India’s biggest Import. Which item is currently the second? (Pick the correct option.)

A. Machineries B. Gold C. Nuclear Fuel D. Arms & Ammunition for Defense

09. As per RBI instructions on Basel III norms, how much is the Capital Adequacy Ratio required to be achieved by Indian Banks, on the date of complete implementation?

10. As per current RBI guidelines, what is the time norm for classifying as NPA, a loan where the borrower has not paid installment or interest? (Pick the correct option.)

A. 30 days B. 60 days C. 90 days D. 180 days

Q 11 – Chose the correct option. As per the newly enacted Companies Act 2013, which is to be effective from the 1st April 2014, the Boards of Directors of the companies should include

State Bank of India

(How To Apply) Recruitment For the Post of Assistants in Clerical Cadre  2014

GUIDELINES FOR FILLING ONLINE APPLICATION: (Pre-requisite for applying online: Candidates should have valid email ID which should be kept active till the declaration of results). This will help him/her in getting call letter/interview advices etc. by e-mail). Candidates are required to register themselves online through Bank’s website www.statebankofindia.com or www.sbi.co.in After registration candidates are required to  pay fee through either online (using Debit/Credit card /Internet banking) or off line mode

OPTION-I: PAYMENT OF FEE (OFFLINE):

• Candidates should first scan their photograph and signature as detailed under guidelines for scanning the photograph and signature.

• Candidates to visit Bank's website www.statebankofindia.com or www.sbi.co.in and open the appropriate Online Application Format available under recruitment link.

• Fill the application carefully. Once the application is filled complete (candidates are advised to take printout of the application before submission of application and check its correctness carefully. If any discrepancy observed, they may edit. After edition/correction they should submit the application), candidates should submit the data. No change/ edit will be allowed after submission of the application. In the event of the candidates not able to fill the data in one go, they can save the data already entered. When the data is saved, registration number and password will be generated by the system and displayed on the screen. Candidates should note down the registration number and password. Email & SMS indicating the Registration number and Password will be sent. They can reopen the saved data using registration number and password and edit the particulars, if needed. EDIT facility will be available for three times only. Candidates to take a printout of the system generated fee payment challan immediately. The registration at this stage is provisional. The system generated fee payment challan form will be required to be presented at any branch of SBI with the requisite fee. On payment of fee, registration of online application will be complete.

• Fee Payment: Fee payment will be accepted from 2nd working day after registration and can be made within three working days (subject to last date for fee payment) at any branch of State Bank of India. Candidates who have registered online on the day before last day or last day of registration and opted for offline fee payment will be required to remit fee on or before last day stipulated for offline fee payment, positively. System generated fee payment challan will be used for depositing fee. Once fee paid, the registration process is completed.

•  Candidates will receive registration confirmation by SMS/e-mail after two working days from the date of payment of fees. Please ensure to furnish correct Mobile number / e-mail address to receive the registration confirmation.

• Note: There is also a provision to reprint the submitted application containing fee details, after three days of fee payment.

OPTION-II: PAYMENT OF FEES: [ONLINE PAYMENT]:

• FOLLOW STEPS i) to iii) GIVEN UNDER OPTION-I ABOVE. However fee payment challan will not be generated and fee payment will have to be made online through payment gateway available thereat.

• After ensuring the correctness of the particulars of the application form candidates are required to pay fees through the payment gateway integrated with the application, following the instructions available on the screen. No change/edit will be allowed thereafter.

• The payment can be made by using MASTER/VISA debit/ credit cards or Internet Banking by providing information as asked on the screen. Transaction charges for online payment will be borne by the candidates.

• On successful completion of the transaction, e-receipt and application form will be generated; you may take its printout for your record. If online transaction fails i.e online transaction is not completed successfully (even amount debited to your account), please register again and pay the fee online.

Note: There is also a provision to reprint the eReceipt and Application form containing fee details, at later stage. Once e-receipt/ application containing fee details is generated, registration is confirmed.

Banking and Financial News – 10 June 2014

KYC Norms Revised - Single address proof enough to open new bank account: RBI - People wanting to open a bank account will now just need to submit a declaration detailing their current address. No proof is required to be submitted for such address for correspondence. This address may be verified by the bank through ‘positive confirmation’ such as acknowledgment of receipt of (i) letter, cheque books, ATM cards; (ii) telephonic conversation; (iii) visits; etc. RBI asked banks to revise their know-your-customer (KYC) rules with immediate effect. Any change in the local address of the customer should be intimated to the bank “within two weeks of such a change”, RBI said. (liveMint)

Nabard cuts lending rate to banks by 20 bps - The National Bank for Agriculture and Rural Development (Nabard) has reduced the interest rate at which it lends to banks by 20 basis points (bps. One basis point is one-hundredth of a percentage point. Banks will now get loans for three years up to below five years at 9.7% interest per annum while funds for five years will be available at 9.5%.

Banks taking loans aggregating more than Rs.500 core in a single tranche will further receive a 10 bps cut in interest rates.

Banking and Financial News – 09 June 2014

300 bank accounts, 200 firms used to commit Saradha scam: ED - The Enforcement Directorate (ED) has unravelled a complex network of 338 bank accounts and over 200 fictitious companies used by the Saradha chit fund culprits to launder Rs 1,983 crore raised from investors duped in the Ponzi scheme. A senior official confirmed that the latest ED report estimates that Rs 1,983 crore has been laundered in this case and has termed the amount as proceeds of crime as stipulated under the criminal provisions of the Prevention of Money Laundering Act ( PMLA). (Business Today)

Rupee Strengthens Below 59/Dollar, RBI Steps In - The Reserve Bank of India was spotted buying dollars via state-run banks starting around 58.98 on Monday, three traders told Reuters. The central bank continued its heavy intervention to curb strength in the rupee. RBI has been intervening in the market daily, buying dollars to prevent sharp rises in the currency from strong foreign inflows. (NDTV Profit)

Important Financial Terms in the News explained.

State Bank of India

(Interview Schedule) Written Exam Result For Specialist Cadre Officers in State Bank Group - 2014

Online Exam held on 19-04-2014

SRNO POST CODE ROLLNO NAME DOB CENTRE DATE TIME

State Bank of India

Central Recruitment and Promotion Department Recruitment of Specialist Cadre Officers in State Bank Group : Online Exam held on 19-04-2014 Result-cum-Interview Schedule

Exam Name: Specialist Cadre Officers

Year: 2014

(SBI PO Sample Material) Reasoning : Missing Figure Series (MCQs)

Directions: Each of the following questions consists of unmarked figures followed by five figures marked 1, 2, 3, 4 and 5. Select a figure from the marked figures which will replace the question mark so that a series be established by the unmarked figures.

Go Back To Main Page

Banking and Financial News – 06 June 2014

RBI allows FPIs, NRIs to invest up to 26% in insurance - (The Hindu)

State Bank group plans surveillance system for ATMs. – It will be Electronic Surveillance, to strengthen security at ATMs. (The Hindu)

Hedge fund banned for insider trading - The Securities and Exchange Board of India (Sebi) has banned Factorial Master Fund, a Cayman Islands-domiciled hedge fund, from dealing in Indian stock markets for allegedly indulging in insider trading.

The capital market regulator, in a interim ex-parte (without hearing the entity banned) order released late on Thursday, said it noticed that Factorial had taken an unusual and aggressive short position in the F&O segment ahead of the L&T Finance Holdings' (LTFH) offer-for-sale (OFS) while in "possession of unpublished price-sensitive information" regarding the likely floor price of its OFS. The order is preliminary and is subject to further hearings. (Economic Times)

Deflation-wary European Central Bank cuts deposit rate to below zero - In a bid to spur growth and avert the dangerous threat of deflation in the sluggish eurozone economy, the European Central Bank cut its benchmark interest rate to a record low and took the unprecedented step of lowering the bank deposit rate below zero. This is the first time that a major central bank has pushed a key rate into negative territory. By lowering the overnight bank deposit rate to negative 0.1 percent from zero, the ECB will be charging lenders to park their funds with the central bank. The hope is that this will spur banks to make more loans and also weaken the euro, helping to lift an inflation rate that dropped to a four-year low of 0.5 percent in May. (Star Tribune)

Dena Bank

(Joining Schedule) Specialist Officers Selected Under CWE-III Conducted By IBPS

Post : Chartered Accountant Scale-II

Note :

Offer of Appointment is being dispatched to all the candidates by the Bank as listed here in below.

The candidates are required to report to the Head Office for completion of pre-recruitment formalities including medical examination.

On completion of Pre-recruitment formalities, candidates are required to join the services of Dena Bank immediately at their place of posting.

In case any candidate does not receive the Offer of Appointment by post by 17.06.2014, he/she may report to the concerned Authority for pre-recruitment formalities including medical examination and joining on any day between 18.06.2014 - 21.06.2014

along with the following documents in original (along with one photo copy duly self - attested).

Copy of Offer of Appointment will be provided to you at the time of Reporting for your reference and acceptance.

1. Three latest passport size photographs.
2. Proof of date of birth (Birth certificate, SSC/ Matric certificate showing date of birth)
3. Certificates in support of your educational qualifications from SSC / Matric onwards (including degree / post-graduation / technical and professional qualifications, as applicable) along with mark sheets for each year / semester.
4. Experience certificate / s, if any.

Pre-recruitment medical examination will be carried out by the Bank’s approved Medical Panel at the place of reporting for pre-recruitment formalities

ROLL_NO

Banking and Financial News – 04 June 2014

RBI cuts SLR – (The Hindu)

• On 3 June 2014, RBI reduced SLR by 50 basis points to 22.50% effective June 14, 2014

• Key rates are unchanged.

• The SLR cut is expected to infuse around Rs.40,000 cr. Into the Banking System.

• RBI said it is committed to keep the economy on a disinflationary course, taking CPI inflation to 8% by Jan 2015 & 6% by Jan 2016.

• Eligible limit for foreign exchange remittances under the Liberalised Remittance Scheme (LRS) is enhanced to US $ 125,000 from US $ 75,000

• All Residents & NRIs (except Pakistanis & Bangla Deshis) are allowed to take out Indian currency notes up to Rs.25,000 while leaving the country.

India slips to seventh spot on FDI confidence index - India has slipped to its lowest position in over a decade in the foreign direct investment confidence index, which has been topped by the United States for the second year in a row, a study has showed. India was ranked second for three years in 2005, 2007 and 2012 and was placed on the third spot in 2010. This is the lowest ranking for India since 2001. (Zee News)

(SBI PO Sample Material) Reasoning : Dice Problem (MCQs)

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Banking and Financial News – 03 June 2014

Jaitley on ADB Board of Governors – Finance Minister Arun Jaitley has been appointed on the Board of Governors of the Philippines-based Asian Development Bank (ADB). The Board of Governors is ADB’s highest policy-making body and has one representative from each member country. (The Hindu)

RBI signals to government: cut the fiscal deficit – On 3 June 2014, RBI cut the SLR rate to 22.5%. RBI has also nudged up its economic growth estimates for this fiscal year to 5-6%. The cut in the statutory liquidity ratio (SLR) is a warning to the government: narrow the fiscal deficit or be prepared to pay higher interest rates for your borrowing. (liveMint)

India Pips Italy, Germany to Become Second Largest Textile Exporter - India has emerged as the second largest textile exporter in the world beating competitors like Italy, Germany and Bangladesh in calendar year 2013, with China retaining the top position, according to data released by UN Comtrade. (NDTV Profit)

Important Financial Terms in the News explained.

(SBI PO Sample Material) General Awareness : National (MCQs)

1. Which Indian state does not touch, Bangladesh border

(a) Meghalaya (b) Tripura
(c) Assam (d) Nagaland

2. Which Indian State does not touch Chinese border

(a) Sikkim (b) Uttranchal
(c) Assam
(d) Arunachal Pradesh

3. Which was the first country with India established a strategic partnership ?

(a) Russia (b) America
(c) Germany (d) France

4. Consider the Following statement

(i) India is the Largest Investor and trading partner of Sri Lanka
(ii) Sittwe port is situated in myanmar

Which of the above statement is/are true

(a) Both 1 & 2 (b) Only 1
(c) Only 2 (d) Neither 1 nor 2

Punjab National Bank

(Joining Information) Clerk Cadre Selected Under CWE-III Conducted By IBPS

Note :

• List of candidates scheduled to join the bank on 07.07.2014 For the States of Chhattisgarh , Delhi, Himachal Pradesh , Karnataka , Kerala & Uttar Pradesh

• The candidates are requested to check their registered email-id and exercise option/ preference for circles Up to 05.06.2014

• Venue for reporting will be advised shortly while issuing offer of appointment

Reserve Bank of India

Recruitment to the Post of Officers in Gr ‘B’ (General)-DR 2014

Apply Online

Candidates have to apply only On-Line through the Bank's website i.e. www.rbi.org.in from 03.06.2014 to 23.06.2014. No other means/mode of applications will be accepted. Detailed instructions for applying On-line are available on the website. Candidates need not submit the system generated print out (hard copy) of the On-Line application to the Board's office.

(A) Pre-Requisites for Applying On-line:

Before applying on-line, candidates should-

1. Scan their photograph and signature as detailed under guidelines for scanning the photograph and signature in item 10 of the advertisement.

2. keep the necessary details/documents ready if desired to make on-line payment of the requisite application fee/intimation charges (In case of Offline Payment i.e. CBS, candidates have to apply on-line, obtain a fee payment challan and then remit the necessary application fees/intimation charges). The candidate is required to keep details about bio-data ready to enable him/her to fill up the application form correctly. The name of the candidate or his/her father/husband etc. should be spelt correctly in the application as it appears in the certificate/mark sheets. At the time of online exam, the acceptable identity proof should also bear the same name.

3. Candidates should have a valid E-mail ID which should be kept active till the declaration of final result. This is essential for him/her in getting Admission Letter (AL) / Interview advice, etc. by E-mail. No change in E-mail ID will be entertained during the entire process of the recruitment.

(B) Procedure for applying on-line:

(SBI PO Sample Material) General Awareness : Economy (MCQs)

1. To which country India recently signed a treaty on avoidance of double taxation .

(a) Germany (b) Japan
(c) U.K (d) Spain

2. Which was the first country with India established a strategic partnership ?

(a) Russia (b) America
(c) Germany (d) France

3. Which one ( mention below ) is not a credit rating agency .

(a) CRISIL (b) CRY
(c) FINCH (d) MODDY’S

4. Recently to which Country’s central bank R.B.I signed a bilateral swap agreement

Banking and Financial News – 02 June 2014

Video Banking - IndusInd Bank launches video banking (Business today). IndusInd is the first bank to do so.

Change is a part of life. Be open to change, because that’s God opening the door to growth in your life. ~ Anonymous

Courtesy : Business today

Banking and Financial News – 31 May 2014

IT Dept asked to share wealth details of defaulters with banks. - In a step to help public sector banks to recover bad loans, Finance Ministry has asked Income Tax Dept to share details of the defaulters’ wealth tax returns with public sector banks if they ask for such information. (The Hindu)

Only he who can see the invisible can do the impossible. ~ Frank L. Gaines

Courtesy : The Hindu

 

Banking and Financial News – 30 May 2014

RIL to acquire control of Network 18 - In one of the biggest deals in the media industry, Mukesh Ambani-controlled Reliance Industries Ltd (RIL) on Thursday said it will acquire control in Network 18 Media & Investments Ltd, including its subsidiary TV18 Broadcast Ltd. NW18 is also the owner of IBNLive.com, Moneycontrol.com, Firstpost.com, Cricketnext.in, Homeshop18.com, Bookmyshow.com; the broadcast channels include Colors, CNN-IBN, CNBC TV18, IBN7, CNBC Awaaz. (Hindustan Times)

Kotak Mahindra Bank cuts promoter stake to comply with RBI norms - Uday Kotak, the founder, vice chairman and managing director of Kotak Mahindra Bank Ltd, on Friday reduced his stake in the lender to 40.3% from 43.58% to comply with a Reserve Bank of India (RBI) direction to do so, the bank said in an emailed statement. (liveMint)

India's GDP grows under 5% for 2nd year running -The Indian economy grew by 4.7% in 2013-14 — the second successive year of sub-5% growth. India’s gross domestic product (GDP) — a measure of the value of goods and services produced in the country — had grown 4.5% in 2012-13 and the government had forecast in February that the economy would grow by 4.9% in 2013-14. (Hindustan Times)

Fiscal Deficit Narrows to 4.5% of GDP in 2013/14 - India's fiscal deficit during the 2013/14 fiscal year that ended in March was Rs. 5.08 lakh crore, or equivalent to 4.5 per cent of the country's gross domestic product, government data showed on Friday. (NDTV Profit)