What Do You Understand by The GDP of The Country?
What Do You Understand by The GDP of The Country?
What Do You Understand by The GDP of The Country?
The final value of all the goods and services produced under the geographical area of a
country is the Gross Domestic Product of that country. GDP is calculated at
consumption, investment and exports and imports are subtracted from the sum of these
three.
What are the various risks that banks face?
Sir, there are mainly three types of risks faced by banks:- Credit Risk: - loan or NPA.
- Market Risk: - Money invested in the market.
- Operational risk: - Day-to-Day working risks.
What are the parts of banks capital?
Bank has following parts of capital:- Tier 1 capital: - Paid up capital (core capital) + Reserves (owners or promoters fund)
- Tier 2 capital: - Secondary Capital (borrowed funds) + general loss reserves +
subordinated term debts + undisclosed reserves (cant be maintained in India)
- Tier 3 capital: - Same as tier 2 capital but with a higher amount in order to face the
market risks of the bank.
facilities, retirement planning, money markets, underwriting, and merger activities. The
basic difference between bank and NBFC is:- They cant accept demand deposits.
- They are not a part of the payment and settlement system and cant issue cheques
drawn on themselves
- They are not registered in the banking act and dont have a banking license.
- They dont have to maintain CRR, SLR or CASA like banks.
What are the components of the monetary policy of RBI?
The components of monetary policy include CRR, Repo rate, reverse repo rate, SLR,
MSF and Bank Rate.
In MSF, banks borrow money from RBI for upto 24 hours. MSF is always 1% above the
repo rate and banks can draw only upto 25 of their NDTL from RBI. Current MSF is
7.75%.
What is white label ATM?
It refers to ATMs owned by corporate or private operators seeking to earn a commission
by banks for transactions performed by their customers. For ex:- INDICASH by TATA
group.
What is brown label ATM?
It refers to the ATMs where investment, installation and maintenance is by a private
operator but the license and branding is by a commercial bank.
What is banking ombudsman scheme?
The banking ombudsman scheme is a scheme to listen to customers grievances and
complaints regarding certain services provided by the bank. It was introduced under the
Section 35 A of banking regulation act, 1949 by RBI with effect from 1995 which was
later amended and became the banking ombudsman scheme, 2006. Customer can
appeal against the decision of ombudsman to deputy governor of RBI. He is the highest
authority of appeal. All banks in India are covered under the scheme.
Inflation is the increase in the price of goods and services due to more demand and less
supply. In inflation, there is more liquidity in market which has to be controlled to reduce
the purchasing power of customers. Deflation is the decrease in prices of goods and
services due to more supply and very less demand. In deflation, there is lack of liquidity
in market which results in very weak purchasing power of people.
What is DEMAT account?
Shares and securities are held electronically in a dematarlised form instead of the
physical form is called Dematarilisation.
Benefit:1. Easy and convenient way to handle electronically
2. Funds are immediately credited in account
3. Less paper work
4. More Safety
5. To save from loss of transit
6. Fast process
7. More Secrecy