Banking Notes- MONEY and Its Types

Money is a thing that is usually accepted as payment for goods and services as well as for the repayment of debts.

                        

NEFT

Q.1. What is NEFT?

Ans: National Electronic Funds Transfer (NEFT) is a nation-wide payment system facilitating one-to-one funds transfer. Under this Scheme,  individuals, firms and corporates can electronically transfer funds from any bank branch to any individual, firm or corporate having an account with any other bank branch in the country participating in the Scheme.

Q.2. Are all bank branches in the country part of the NEFT funds transfer network?

Ans: For being part of the NEFT funds transfer network, a bank branch has to be NEFT- enabled. The list of bank-wise branches which are participating in NEFT is provided in the website of Reserve Bank of India

 

Banking Notes- BASEL III

Basel III (or the Third Basel Accord) is a global, voluntary regulatory standard on bank capital adequacy, stress testing and market liquidity risk. It was agreed upon by the members of the Basel Committee on Banking Supervision in 2010–11, and was scheduled to be introduced from 2013 until 2015; however, changes from 1st April 2013 extended implementation until 31 March 2018. The third installment of the Basel Accords (see Basel I, Basel II) was developed in response to the deficiencies in financial regulation revealed by the late-2000s financial crisis. Basel III was supposed to strengthen bank capital requirements by increasing bank liquidity and decreasing bank leverage.

Key principles of BASEL III :

Capital requirements:
The original Basel III rule from 2010 was supposed to require banks to hold 4.5% of common equity (up from 2% in Basel II) and 6% of Tier I capital (up from 4% in Basel II) of "risk-weighted assets" (RWA).[3] Basel III introduced "additional capital buffers", (i) a "mandatory capital conservation buffer" of 2.5% and (ii) a "discretionary  counter-cyclical buffer", which would allow national regulators to require up to another 2.5% of capital during periods of high credit growth.

Public sector Banks and Their Taglines

Dear Readers, we are presenting Taglines of Publich sector banks for upcoming Exams.

State Bank Group- Pure banking nothing else;

Allahabad Bank- A tradition of trust

Andhra Bank- Much more to do, with YOU in
focus

Bank of Baroda- India’s international bank

Bank of India- Relationships beyond banking

Bank of Maharashtra - One family one bank

Canara Bank - Together We Can

Central Bank of India- Build A Better Life Around Us

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.