One Liners of Banking Awareness

o    RBI is the Central bank of India
o    RBI was setup on the recommendations of Royal Commission on Indian Currency and Finance also known as the Hilton- Young Commission.
o    RBI has 4 regional offices at Mumbai, Kolkatta, Chennai and Delhi.
o    The head office of RBI is located at Mumbai.
o    Currency notes other than one rupee notes are issued by RBI.
o    Scheduled commercial banks are included in the second schedule to the RBI act 1934.
o    Schedule commercial banks are- SBI and its associates, Nationalized banks, private sector banks, regional rural banks, urban cooperative banks, state cooperative banks.

o    14 banks were nationalized on 19 july 1969.
o    Regional rural banks were established on 2.10.1975
o    All commercial banks including branches of foreign banks functioning in India, local area banks and regional rural banks are insured by the DICGC(Deposit Insurance and Credit Gurantee Corporation of India Limited).
o    Each depositor in a bank is insured upto a maximum of Rs 1 lakh for both principal and interest amount.
o    LIC (Life insurance corporation) of India was established in 1956 as wholly owned corporation of the Government of India.
o    Export and Import Bank of India (EXIM) was established in 1982.
o    National Bank of agriculture and Rural Development (NABARD) was established in 1982.
o    Interest payable on savings bank account is not regulated by RBI.
o    With effect from April 2010 payment of interest on savings bank accounts by scheduled commercial banks would be calculated on a daily product basis.
o    Fixed deposits and recurring deposits are repayable after an agreed period.
o    When a bank returns a cheque unpaid , it is called as dishonor of the cheque.
o    Mortgage is a security on immovable property for a deposit received by a bank.
o    Accounts in which shares of various companies are traded in electronic form is called Demat account.
o    Distribution of insurance products and insurance policies by the banks as corporate agencies is known as bankassurance.
o    The rate of inflation increases when the purchasing power of money decreases.
o    Treasury bills, commercial paper, certificate of deposit, shares and bonds are called as money market instruments.
o    Repurchase agreement is not money market instrument.
o    The loans of very small amount given to low income group is called as Mirco credit.
o    ALM stands for Asset Liability management
o    The Banking ombudsman resolves the complaints of the customers in regard to services provided by the banks.
o    Money laundering means the process of conversion of money obtained illegally to appear to have originated from legitimate sources
o    A cheque which has completed the stipuled validy of the cheque is called as Stale Cheque.
o    Interest is not paid in current accounts.
o    CAMEL denotes capital adequacy, asset quality, management, efficiency and liquidity.
o    When the ATM machine installed in the bank is out of order, it is called as operational risk.
o    When the loans are not repaid in time, it is called as credit risk.
o    The first Indian bank to open a branch outside India in London in 1946 is bank of India.
o    Soiled note means a note which has become dirty due to usage and also includes a two piece note pasted together wherein both the pieces presented belong to the same note and form the entire note.
o    Mutilated banknote is a banknote of which a portion is missing or which is composed of more than two pieces.
o    Imperfect banknote means any banknote which is wholly or partially, obliterated, shrunk , washed, altered but doesnot include a multilated banknote
o    The first banknote issued by independent India wa the one rupee note issued in 1949
o    KYS is an acronym for Know Your Customer a term used for customer identification process.
o    KYC has two components- Identity and address
o    Commercial Paper(CP) is an unsecured money market instrument issued in the form of a promissory note
o    Commercial Paper(CP) was introduced in India in 1990.

o    Corporates, primary dealers and the all India Financial institutions are eligible to issue CP
o    Commercial Paper(CP) can be issued for maturities between a minimum of 7 Days and a maximum of upto 1 year from the date of issue.
o    Commercial Paper(CP) can be issued in denominations of Rs 5 lakh or multiples thereof.
o    Every issuer must appoint an issuing and payment agent for issuance of CP.
o    A term deposit is a contract between the bank and the customer for a definite term and it cannot be paid prematurely at the bank’s option. Banks have the freedom to determine their own penal rates of interest for premature withdrawal of term deposits
o    Base rate system has replaced the erstwhile Benchmark Prime lending rate system with effect from July 2010
o    RTGS stands for REAL TIME GROSS SETTLEMENT
o    The RTGS system is primarily meant for large value transactions. The minimum amount to be remitted through RTGS is Rs 2 Lakh. There is no upper ceiling for RTGS transactions
o    NEFT – NATIONAL ELECTRONIC FUNDS TRANSFER is a nation – wide payment system facilitating one to one funds transfer.
o    There is no limit- either minimum or maximum- on the amount of funds that could be transferred using NEFT.
o    IFSC or INDIANFINANCIAL SYSTEM CODE is an alpha-numeric code that uniquely identifies a bank branch participating in the NEFT system
o    ECS- Electronic Clearing System is an electronic mode of payment/receipt for transactions that are repetitive and periodic in nature
o    MICR – MAGNETIC INK CHARACTER RECONGNITION is a 9 digit code to identify the location of the bank branch; the first 3 characters represent the city, next 3 the bank and lat 3 the branch
o    The first bank in India to be given an ISO certification is CANARA Bank
o    The First Indian bank to have been started solely with Indian capital is PUNJAB NATIONAL BANK
o    Cheque Truncation system(CTS) is the process of stopping the flow of the physical cheque issued by a drawer at some point with the presenting bank en-route to the drawee bank branch.
o    The FULL FORM of CORE in Core banking Solution is Centralized Online Realtime Exchange
o    Inflation in India is measured on gross domestic product(GDP)
o    Central Government levies taxes on income(except income on agriculture which by state govt.) , customs duties, central excise and service tax.
o    VAT, stamp duty, state excise, land revenue and profession tax are levied by state government
o    Allahabad Bank is the oldest public sector bank in India
o    Divideneds are profits the company distributes to shareholders
o    Bankruptcy is a legal action in which a person who is not able to repay his loans satisfactorily is declared bankrupt by a court order
o    Indian Stock market has three mainstream stock exchanges- BSE, NSE and MCX-SX


o    RBI is the Central bank of India
o    RBI was setup on the recommendations of Royal Commission on Indian Currency and Finance also known as the Hilton- Young Commission.
o    RBI has 4 regional offices at Mumbai, Kolkatta, Chennai and Delhi.
o    The head office of RBI is located at Mumbai.
o    Currency notes other than one rupee notes are issued by RBI.
o    Scheduled commercial banks are included in the second schedule to the RBI act 1934.
o    Schedule commercial banks are- SBI and its associates, Nationalized banks, private sector banks, regional rural banks, urban cooperative banks, state cooperative banks.

o    14 banks were nationalized on 19 july 1969.
o    Regional rural banks were established on 2.10.1975
o    All commercial banks including branches of foreign banks functioning in India, local area banks and regional rural banks are insured by the DICGC(Deposit Insurance and Credit Gurantee Corporation of India Limited).
o    Each depositor in a bank is insured upto a maximum of Rs 1 lakh for both principal and interest amount.
o    LIC (Life insurance corporation) of India was established in 1956 as wholly owned corporation of the Government of India.
o    Export and Import Bank of India (EXIM) was established in 1982.
o    National Bank of agriculture and Rural Development (NABARD) was established in 1982.
o    Interest payable on savings bank account is not regulated by RBI.
o    With effect from April 2010 payment of interest on savings bank accounts by scheduled commercial banks would be calculated on a daily product basis.
o    Fixed deposits and recurring deposits are repayable after an agreed period.
o    When a bank returns a cheque unpaid , it is called as dishonor of the cheque.
o    Mortgage is a security on immovable property for a deposit received by a bank.
o    Accounts in which shares of various companies are traded in electronic form is called Demat account.
o    Distribution of insurance products and insurance policies by the banks as corporate agencies is known as bankassurance.
o    The rate of inflation increases when the purchasing power of money decreases.
o    Treasury bills, commercial paper, certificate of deposit, shares and bonds are called as money market instruments.
o    Repurchase agreement is not money market instrument.
o    The loans of very small amount given to low income group is called as Mirco credit.
o    ALM stands for Asset Liability management
o    The Banking ombudsman resolves the complaints of the customers in regard to services provided by the banks.
o    Money laundering means the process of conversion of money obtained illegally to appear to have originated from legitimate sources
o    A cheque which has completed the stipuled validy of the cheque is called as Stale Cheque.
o    Interest is not paid in current accounts.
o    CAMEL denotes capital adequacy, asset quality, management, efficiency and liquidity.
o    When the ATM machine installed in the bank is out of order, it is called as operational risk.
o    When the loans are not repaid in time, it is called as credit risk.
o    The first Indian bank to open a branch outside India in London in 1946 is bank of India.
o    Soiled note means a note which has become dirty due to usage and also includes a two piece note pasted together wherein both the pieces presented belong to the same note and form the entire note.
o    Mutilated banknote is a banknote of which a portion is missing or which is composed of more than two pieces.
o    Imperfect banknote means any banknote which is wholly or partially, obliterated, shrunk , washed, altered but doesnot include a multilated banknote
o    The first banknote issued by independent India wa the one rupee note issued in 1949
o    KYS is an acronym for Know Your Customer a term used for customer identification process.
o    KYC has two components- Identity and address
o    Commercial Paper(CP) is an unsecured money market instrument issued in the form of a promissory note
o    Commercial Paper(CP) was introduced in India in 1990.

o    Corporates, primary dealers and the all India Financial institutions are eligible to issue CP
o    Commercial Paper(CP) can be issued for maturities between a minimum of 7 Days and a maximum of upto 1 year from the date of issue.
o    Commercial Paper(CP) can be issued in denominations of Rs 5 lakh or multiples thereof.
o    Every issuer must appoint an issuing and payment agent for issuance of CP.
o    A term deposit is a contract between the bank and the customer for a definite term and it cannot be paid prematurely at the bank’s option. Banks have the freedom to determine their own penal rates of interest for premature withdrawal of term deposits
o    Base rate system has replaced the erstwhile Benchmark Prime lending rate system with effect from July 2010
o    RTGS stands for REAL TIME GROSS SETTLEMENT
o    The RTGS system is primarily meant for large value transactions. The minimum amount to be remitted through RTGS is Rs 2 Lakh. There is no upper ceiling for RTGS transactions
o    NEFT – NATIONAL ELECTRONIC FUNDS TRANSFER is a nation – wide payment system facilitating one to one funds transfer.
o    There is no limit- either minimum or maximum- on the amount of funds that could be transferred using NEFT.
o    IFSC or INDIANFINANCIAL SYSTEM CODE is an alpha-numeric code that uniquely identifies a bank branch participating in the NEFT system
o    ECS- Electronic Clearing System is an electronic mode of payment/receipt for transactions that are repetitive and periodic in nature
o    MICR – MAGNETIC INK CHARACTER RECONGNITION is a 9 digit code to identify the location of the bank branch; the first 3 characters represent the city, next 3 the bank and lat 3 the branch
o    The first bank in India to be given an ISO certification is CANARA Bank
o    The First Indian bank to have been started solely with Indian capital is PUNJAB NATIONAL BANK
o    Cheque Truncation system(CTS) is the process of stopping the flow of the physical cheque issued by a drawer at some point with the presenting bank en-route to the drawee bank branch.
o    The FULL FORM of CORE in Core banking Solution is Centralized Online Realtime Exchange
o    Inflation in India is measured on gross domestic product(GDP)
o    Central Government levies taxes on income(except income on agriculture which by state govt.) , customs duties, central excise and service tax.
o    VAT, stamp duty, state excise, land revenue and profession tax are levied by state government
o    Allahabad Bank is the oldest public sector bank in India
o    Divideneds are profits the company distributes to shareholders
o    Bankruptcy is a legal action in which a person who is not able to repay his loans satisfactorily is declared bankrupt by a court order
o    Indian Stock market has three mainstream stock exchanges- BSE, NSE and MCX-SX


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