Current Affairs : Banking Awareness for IBPS PO Exam 2013

Institute of Banking Personnal Selection (IBPS) is going to conduct exam for recruitment of Probationary Officers in various banking & financial institutions later this month. Observing latest pattern and a few years question papers, IBPS emphasize on banking awareness part in general awareness section of question paper. To help you with this, we are with latest banking awareness topics and current affairs related with banking industry.

• IDBI's 'Own Your NPA Campaign': IDBI Bank has launched a special ‘Own Your NPA’ (non-performing asset) campaign so that officials give it all they’ve got for faster resolution of bad debts. As part of the campaign, each zonal, regional and branch manager will personally go and meet the customers.
• Global rating agency Fitch has scaled down its projections on India’s growth to 4.8% for the current fiscal from the earlier estimate of 5.7% made in June, 2013.
• The Reserve Bank of India (RBI) on 7 October 2013 reduced the Marginal Standing Facility (MSF) rate to 9 per cent from 9.5 per cent.
• Reserve Bank of India on 25 September 2013 banned 0% interest rate schemes for purchase of consumer goods.
• Reserve Bank of India hiked the short-term lending (repo) rate to 7.5%, seeking to control inflation. The Cash Reserve Ratio (CRR) was left unchanged at 4%.
• Reserve Bank of India (RBI) on 19 September announced that banks can open their branches in tier 1 centers without taking its permission in each case.
• The First direct bank (a bank without any branch network that offers its services remotely via online banking and telephone banking and may also provide access via ATMs) has been launched in China by the Bank of Beijing in co-operation with the Netherlands-based ING Group.
• RBI allowed Non-Resident Investors to purchase shares from listed stock exchanges of Indian entities Under FDI Scheme.
• The Pension Fund Regulatory and Development Authority Bill (PFRDA), 2011 which aims to regulate the New Pension System (NPS) has been passed in the Lok Sabha.
• Insurance compnay Life Insurance Corporation (LIC) has increased its equity stake by 2.86% in the country’s largest public sector bank State Bank of India (SBI) from 10.4 % to 13.26% by buying 19.57 lakh shares from open market.
• S R Bansal in new Chairman and Managing director of Corporation Bank.

For more banking awareness articles, please visit again.

Current Affairs September 2013 for IBPS/Banking & SSC Exams

Here we are sharing important current affair updates and general knowledge to boost up your preparations for upcoming IBPS PO recruitment and various SSC Exams.

• India Won First Under-21 Johor Cup of Hockey tournament by defeating Malaysia.
• Malala Yousufzai has been honored with 2013 Peter J Gomes humanitarian,a prestigious award, by Harvard Univversity.
• Ravinder Kumar, Editor of ‘The Statesman’ newspaper has been elected as the president of the Indian Newspaper Society (INS) for the year 2013-14.
• Chief of the Odisha Cricket Association, Ranjib Biswal was appointment as the new Chairman of the IPL who succeeds Rajiv Shukla, who resigned at the end of his tenure.
• Narayanaswamy Srinivasan has been re-elected as the president of the Board of Control for Cricket in India (BCCI) for a third term.
• The Ministry of Health and Family Welfare named former Indian cricket team captain Rahul Dravid as the brand ambassador for its National Tobacco Control Campaign.
• The Department of Posts, Ministry of Communications & Information Technology, allotted a Customized Pin Code to the Supreme Court of India. The Pin Code allotted to the Supreme Court is ‘110 201’.
• Rafiq Kathwari, an Indian-American poet on 29 September 2013 selected for 2013 Patrick Kavanagh Poetry Award for the collection of his debut poems.
• Venkat Rahul Ragala from Andhra Pradesh on 7 September 2013 won weightlifting gold at Asian youth Games in Guangzhou.
• Indian social activist Anna Hazare has been honored with the inaugural Allard Prize for International Integrity conferred by the University of British Columbia’s Faculty of Law at a function held in Vancouver, Canada.
• Sudha Singh of Railways won gold medal in women’s 3000m steeplechase in 53rd National Open Athletics Championship.
• Megan Young of Philippines on 28 September 2013 was crowned Miss World 2013 at the Bali Nasa Dua Convention Center in Bali, Indonesia.
• Ruchira Kamboj was appointed as the Permanent Representative of India to UNESCO, Paris with the rank of Ambassador.
• Chancellor of Germany Angela Merkel won a third term by in German elections.
• Ravindra Kumar, Editor of The Statesman was elected President of The Indian Newspaper Society for the year 2013-14.
• India beat China in the 8th Asia Cup Women hockey tournament at Kuala Lumpur to win the Bronze on 27 September 2013.
• Reserve Bank of India Governor Raghuram Rajan was awarded with the Deutsche Bank Prize for Financial Economics 2013. 
• Pond’s Femina Miss India World 2013 Navneet Kaur Dhillon won the Multimedia Award at the Miss World 2013 held in Bali, Indonesia.
• The Supreme Court of India on 27 September 2013 held that citizens have the right to reject all candidates contesting an election.
• Sri Srinivasan was on 26 September 2013 sworn in as judge of the US Courts of Appeal for the District of Columbia Circuit.
• Horticultural mail order company Thompson & Morgan developed a plant called The TomTato, which can produce tomatoes and potatoes.
• Randall Oliphant, Executive Chairman of the Canadian gold producer New Gold Inc., has been appointed as the Chairman of the World Gold Council (WGC) . 
• Chinese table tennis player Liu Shiwen clinched Women’s Table TennisWorld Cup 2013 after beating teammate Wu Yang in the final play of the tournament held in Kobe, Japan.
• Australia unveiled its most powerful super computer Raijin in Canberra on 31 July 2013.
• Sarah Outen (28), an adventurer from Britain who spent 150 days at sea to become the first woman to row solo from Japan to Alaska.

For more current affairs and important general knowledge updates for Banking & SSC Exams, Keep Visiting gkline.blogspot.com.

Important Banking & Financial Terms for IBPS/Bank PO/Clerk Exams & Interview

1. Balance of Trade:

The value of a country’s exports minus the value of its imports. Unless specified as the balance of merchandise trade, it normally incorporates trade in services, including earnings (interest, dividends, etc.) on financial assets.

2. Balanced Trade:

When a balance of trade equal to zero. (exports – imports = 0)

3. Balance of Payments:

A list of all of a country’s international transactions for a given time period, usually one year. Payments into the country (receipts) are entered as positive numbers, called credits; Payments out of the country (payments) are entered as negative numbers called debits. A single numbers summarize all of a country’s international transactions: the balance of payments surplus.

4. MFN (Most Favoured Nation):

The principle, fundamental to the GATT, of treating imports from a country on the same basis as that given to the most favoured other nation. That is, and with some exceptions, every country gets the lowest tariff that any country gets, and reductions in tariffs to one country are provided also to others.

5. Balanced Budget:

A government budget surplus that is zero, thus with net tax revenue equaling expenditure. A balanced budget changes in policy or behavior is one which a component of the government budget, usually taxes, is adjusted as necessary to maintain a balanced budget.

6. Balanced Growth of an Economy:

Growth of an economy in which all aspects of it, especially factors of production, grow at the same rate.

7. Bank Rate:

The interest rate charges by a central bank to commercial banks for very short term loans.

8. Repo:

Repo is “Repurchase Agreement”. An agreement to sell a security for a specified price and to buy it back later at another specified price. A repo is essentially a secured loan.

9. Repo Rate:

Whenever the banks have any shortage of funds they can borrow it form RBI. Repo rate is the rate at which commercial banks borrows rupees from RBI. A reduction in the repo rate will help banks to get money at cheaper rate. When the repo rate increases borrowing form RBI becomes more expensive.

10. Reverse Repo Rate:

Reverse Repo rate is the rate at which RBI borrows money from commercial banks. Banks are always happy to lend money to RBI since their money is in the safe hands with a good interest. An increase in reverse repo rate can cause the banks to transfer more funds to RBI due to this attractive interest rates.

11. CRR (Cash Reverse Ratio):

CRR is the amount of funds that the banks have to keep with RBI. If RBI increases CRR, the available amount with the banks comes down. RBI is using this method (increase of CRR), to drain out the excessive money from the banks.

12. SLR (Statutory Liquidity Ratio):

SLR is the amount a commercial banks needs to maintain in the form of cash, or gold, or govt. approved securities (Bonds) before providing credit to its customers. SLR rate is determined and maintained by RBI in order to control the expansion of the bank credit.

13. Need of SLR:

With the SLR, the RBI can ensure the solvency of a commercial banks. It is also helpful to control the expansion of the Bank credits. By changing SLR rates, RBI can increase or decrease bank credit expansion. Also through SLR, RBI compels the commercial banks to invest in the government securities like govt. bonds.

14. Main use of SLR:

SLR is used to control inflation and propel growth. Through SLR rate the money supply in the system can be controlled effectively.

15. Fiscal Deficit:

A deficit in the government budget of a country and represents the excess of expenditure over income. So this is the amount of borrowed funds require by the government to meet its expenditures completely.

16. Direct Tax:

A direct tax is that which is paid directly by someone to taxing authority. Income tax and property tax are an examples of direct tax. They are not shifted to somebody else.

17. Indirect Tax:

This type of tax is not paid by someone to the authorities and it is actually passed on to the other in the form of increased cost. They are levied on goods and services produced or purchased. Excise Tax, Sales Tax, Vat, Entertainment tax are indirect taxes.

18. NOSTRO Account:

A Nostro account is maintained by an Indian Bank in the foreign countries.

19. VOSTRO Account:

A Vostro account is maintained by a foreign bank in India with their corresponding bank.

20. SDR (Special Drawing Rights):

SDR are new form of International reserve assets, created by the International Monetary Fund in 1969. The value of SDR is based on the portfolio of widely used countries and they are maintained as accounting entries and not as hard currency or physical assets like Gold.

Imprtant Organisations and their Head Offices for IBPS/Bank PO/Clerk Exams

Imprtant Organisations and their Head Offices for IBPS/Bank PO/Clerk Exams:

1. Food and Agricultural Organisation (FAO) —Rome
2. International Labour Organisation (ILO) —Geneva
3. World Health Organisation (WHO) —Geneva
4. World meteorological Organisation (WMO) —Geneva
5. International Telecommunication Union (ITD) —Geneva
6. International Monetary Fund (IMF) —Washington
7. International Finance Corporation (IFC) —Washington
8. International Bank For Reconstruction and Development (IBRD) or World Bank —Washington
9. International Civil Aviation Organisation (ICAO) —Montreal
10. United Nations Educational Scientific and Cultural Organisation (UNESCO) —Paris
11. United Nations International Children's Emergency Fund (UNICEF) —New York
12. Inter-governmental Maritime Consultative Organisation (IMCO) —London
13. International Atomic Energy Agency (IAEA) —Vienna
14. United Nations Industrial Development Organizations (UNIDO) —Vienna, (Austria)
15. United Nations Fund for Population Activities (UNFPA) —New York
16. United Nations Development Programme (UNDP) —New york
17. United Nations High Commissioner for Refugees (UNHCR) —Geneva (Switzerland)
18. United Nations Environment Programme (UNEP) —Nairobi (Kenya)
19. Universal Postal Union (UPU) —Berne (Switzerland)

For more current Affairs, Keep Visiting gkline.blogspot.com

Books & winners of the Booker Prize for Fiction : GK Collection

2012- Bring Up the Bodies (Hilary Mantel)
2011 - The Sense of an Ending (Barnes) 
2010 - The Finkler Question (Jacobson) 
2009 - Wolf Hall (Mantel)
2008 - The White Tiger (Adiga)
2007 - The Gathering (Enright)
2006 - The Inheritance of Loss (Desai)
2005 - The Sea (Banville)
2004 - The Line of Beauty (Hollinghurst)
2003 - Vernon God Little (Pierre)
2002 - Life of Pi (Martel)
2001 - True History of the Kelly Gang (Carey)
2000 - The Blind Assassin (Atwood)
1999 - Disgrace (Coetzee)
1998 - Amsterdam: A Novel (McEwan)
1997 - The God of Small Things (Roy)
1996 - Last Orders (Swift)
1995 - The Ghost Road (Barker)
1994 - How Late It Was, How Late (Kelman)
1993 - Paddy Clarke Ha Ha Ha (Doyle)
1992 - The English Patient (Ondaatje)
1992 - Sacred Hunger (Unsworth)
1991 - The Famished Road (Okri)
1990 - Possession: A Romance (Byatt)
1989 - The Remains of the Day (Ishiguro)
1988 - Oscar and Lucinda (Carey)
1987 - Moon Tiger (Lively)
1986 - The Old Devils (Amis)
1985 - The Bone People (Hulme)
1984 - Hotel Du Lac (Brookner)
1983 - Life & Times of Michael K (Coetzee)
1982 - Schindler's Ark (Keneally)
1981 - Midnight's Children (Rushdie)
1980 - Rites of Passage (Golding)
1979 - Offshore (Fitzgerald)
1978 - The Sea, the Sea (Murdoch)
1977 - Staying on (Scott)
1976 - Saville (Storey)
1975 - Heat and Dust (Jhabvala)
1974 - The Conservationist (Gordimer)
1974 - Holiday (Middleton)
1973 - The Siege of Krishnapur (Farrell)
1972 - G. (Berger)
1971 - In a Free State (V. S. Naipaul )
1970 - The Elected Member (Bernice Rubens)
1969 - Something to Answer For (P.H.Newby)

Indian National Congress Notes for SSC & UPSC Exams

INDIAN NATIONAL CONGRESS : History Notes

* Founded by 1885 by A.O. Hume.

* Venue of 1 st Session – Gokul Tejpal Sanskrit School of Bombay.

* First President – W.C. Banerjee. * First Women President – Annie Besant (1917 Calcutta). 

* First Indian Women President – Sarojini Naidu.(1925, Kanpur)

* First English President – George Yule * First Muslim President – Badaruddin Tayabji

* Women President – Annie Besant (1917), Sarojini Naidu (1925) and Nalin Sengupta. 

* Thrice President (Maximum times)– Dadabhi Naoroji (1886,1863,1906), J.L. Nehru (1929, 1936, 1937).

* First Session to hold in village – 1937 (Fazipur). * First split of congress – 1907 (Surat). * First – Joint Session of Congress and Muslim League Lucknow (1916).

* Word Swaraj was first used from congress platform (1906) Calcutta.

* Only session presided over by Gandhi – Belgaon (1924).

* Complete Independence was demand for the first time (1929), Lahore.

* For the first time NationalSong was sung in the Calcutta Session (1896) of INC. i.e., Vande Mataram * For the first time National Anthem (Jana Gana Mana ) Was sung in Calcutta session (1911) of INC.

* Maulana Abul Kalam Azadwas the youngest president of Inc.

* The first session of congress (Bomaby 1885) was attended by 72 representatives.During the fourth session of INC (1888,Allahabad) emphasized was given on formation of its constitution. * Nagpur Session (1891) the word ‘National’ was added to Congress. * Poona session(1895), representatives second time discussed on the formation of its constitution.

* Calcutta session of 1906, its president for the first time used ‘ Swaraj’ in his speech. * In Lucknow Session of Congress (1916) the two factions of congress (extremists and Moderates) reunited.

* During Ahmedabad Session of INC (1921) , C. R. Das was elected its President but Azamal Khan presided over the session because C.R. Das was in prison.

* During Gaya Session (1922 ) differences arose over the issue of council entry. C.R.Das and Motilal Nehru organized Swaraj Party in 1922.

* During its Delhi session (1923) INC decided to establish All India Khadi Borad.

* Gandhi presided over only Belgaon session (1924) of INC * During this session knowledge of weaving wasfixed as minimum qualification for its members. Gandhi decide toset up ‘All India Charkha Association declared 1926’ as year of keeping silent.

* During Guwahati session of Inc (1926) wearing Khadi was made compulsory for its workers.

* During Madras session of INC 91927), proposals for independence and to boycott Simon commission were passed. Gandhi did not participate.

* During Karachi Session (1931) Fundamentals Rights and Economic PolicyProposals Passed.

* During its 1932 and 1933session government had declared it an illegal organization.

* During Lucknow Session (1936), J.L. Nehru explainedsocialism for the first time.* During Fazipur Session (1937) congress decided to take part in election of 1937. * 1938 session of congress held in a village Haripura.Netaji elected unopposed. * In Ramgarh Session (1904) decisions onIndividual Satyagarha.

* The word “Congress” Or INC was taken from the history of USA which means group of people.

* During Tripuri Session Of INC (1939) Subhash Chandra Bose Defeated Pattabhi Sitaramaya(Gandhi’s candidate in presidential election) but later resigned and Rajendra Prasad became its president.* During Calcutta Session (1928) first All India Youth congress was established.

Indian Banking History for IBPS/Bank Exams 2013

Pre-Independence Banking History in India:

Banking history of India is divided into Two major categories -

• Pre-Independence Banking History
• Post-Independence Banking History

Pre-Independence Banking:-

• The origin of modern Banking in India dates back to the 18th century.
• Bank of Hindustan was established in 1779 and it was the first bank at Calcutta under European management.
• Banking Concept in India was brought by Europeans.
• In 1786 General Bank of India was set up.
• On June 2, 1806 the Bank of Calcutta established in Calcutta. It was the first Presidency Bank during the British Raj.
• Bank of Calcutta was established mainly to fund General Wellesley’s wars against Tipu Sultan and the Marathas.
• On January 2, 1809 the Bank of Calcutta renamed as the Bank of Bengal.
• In 1839, there was a fruitless effort by Indian merchants to establish a Bank calledUnion Bank but it failed within a decade.
• On 15th April, 1840 the second presidency Bank was established in Bombay – Bank of Bombay.
• On 1 July 1843 the Bank of Madras was established in Madras, now Chennai. It was the third Presidency Bank during the British Raj.
• Allahabad Bank which was established in 1865 and working even today.
• The oldest Public Sector Bank in India having branches all over India and serving the customers for the last 145 years is Allahabad Bank. Allahabad bank is also known as one of India’s Oldest Joint Stock Bank.
• These Presidency banks worked as quasi central banks in India for many years under British Rule.
• The Comptoire d’Escompte de Paris opened a branch in Calcutta in 1860.
• HSBC established itself in Bengal in 1869
• Calcutta was the most active trading port in India, mainly due to the trade of the British Empire, and so became a banking center.
• The Oldest Joint Stock bank of India was Bank of Upper India established in 1863 but this bank was become defunct in 1913.
• In 1881,  Oudh Commercial Bank was established at Faizabad it was the first Bank of India with Limited Liability to be managed by Indian Board. After Independence, In 1958 this bank failed.
• In 1895 Punjab National Bank was established in Lahore in Punjab province of Undivided India. It was the first bank purely managed by Indian. PNB has not only survive but also become the second largest public sector bank in India.
• The first Indian commercial bank which was wholly owned and managed by Indians was Central Bank of India which was established in 1911.
• Central bank of India was also called India’s First Truly Swadeshi bank.
• The Swadeshi movement inspired local businessmen and political figures to found banks of and for the Indian community.  The period between 1906 and 1911 thousands of Banks were established in India. Many of those banks established then have survived to the present such as Bank of India, Corporation Bank, Indian Bank, Bank of Baroda, Canara Bank and Central Bank of India.
• At least 94 banks in India failed between 1913 and 1918 due to economic crisis during World War I.
• In 27th January, 1921 Bank of Calcutta, Bank of Madras and Bank of Bombay were amalgamated  to form Imperial Bank of India.
• In 1926 Hilton-Young Commission submitted it’s report.
• In 1934 Reserve Bank of India act was passed.
• On the recommendation of Hilton-Young Commission, On 1st April 1935 Reserve Bank of India was established.
• RBI was established with initial share capital worth Rs. 5 crore with 5 Lakh Rs. 100 share dividend.

Banking History in India – Post-Independence Banking History

Post-Independence Banking History:

Immediately after the Independence, the partition of India in 1947 adversely impacted the economies of Punjab and West Bengal by paralyzing banking activities for months.With end of British rule in India marked the end of a regime of the Laissez-faire for the Indian banking sector.

The Government of India initiated measures to play an active role in the economic life of the nation, and the Industrial Policy Resolution adopted by the government in 1948 envisaged a mixed economy. To streamline the functioning and activities of commercial banks, the government of India has came up with the Banking Companies act, 1949. The Reserve Bank of India, India’s central banking authority, was nationalized on January 1, 1949 under the terms of the Reserve Bank of India (Transfer to Public Ownership) Act, 1948.  The Reserve Bank of India was vested with major powers for the supervision of banking inn India as he central banking authority.

The Banking Regulation Act also provided that no new bank or branch of an existing bank could be opened without a license from the RBI, and no two banks could have common directors.During those days, the general public had lesser confidence in Banking. As an aftermath, the deposit mobilization process was very slow. Moreover, the savings bank facility provided by postal department was considered comparatively safer than banks, and funds were largely given to traders.

  

Nationalised Banks in India – Bank Nationalisation in India

In India, the Banking Sector has been dominated by Government or Public Sector Banks for last 64 years. In 1954 the All India Rural Credit Survey Committee submitted its report recommending creation of a strong, integrated, state-sponsored, state-partnered commercial banking institution with an effective machinery of branches spread all over the country. 

The recommendations of this committee led to establishment of first Public Sector Bank in the name of State bank of India  on July 01, 1955 by acquiring the substantial part of share capital by Reserve Bank of India, of then Imperial Bank of India. Similarly during 1956-59, as a result of reorganization of princely states, the State Bank of India associate Bank came into fold of Public sector banking.

On July 19, 1969, the Govt. promulgated Banking Companies (Acquisition and Transfer of Undertakings) ordinance 1969 to acquire 14 bigger commercial banks with with deposits over 50 crores. 

The main objective behind this bank nationalisation was to spread banking infrastructure in rural india and make cheap finance available to Indian farmers.

The second phase of bank nationalisation took place in 1980 during the prime ministerial tenure of Indira Gandhi, in which 7 more banks were nationalised with deposits over 200 crores.

List of Nationalised Banks in India:

1. Allahabad Bank
2. Andhra Bank
3. Bank of Baroda
4. Bank of India
5. Bank of Maharashtra
6. Canara Bank
7. Central Bank of India
8. Corporation Bank
9. Dena Bank
10. Indian Bank
11. Indian Overseas Bank
12. Oriental Bank of Commerce
13. Punjab and Sind Bank
14. Punjab National Bank
15. Syndicate Bank
16. UCO Bank
17. Union Bank of India
18. United Bank of India
19. Vijaya Bank

Bank Liberalisation in India – Liberalisation in Banks

Liberalisation in banking sector in India noticed in early 1990s’ when India adopted a new economic policy for the development of the nation. Narasimha Rao government embarked on a policy of liberalization, licensing a small number of private banks.For the first time in India new private banks got license for providing  banking service. These banks came to be known as the New Generation tech-savvy banks.

The first bank in India set up after the adaptation of new liberalization policy in banking sector was Global Trust Bank. It was later amalgamated with Oriental Bank of Commerce. The list of banks set up after new liberalization policy includes Global Trust Bank, UTI Bank (Now known as Axis Bank), ICICI Bank and HDFC Bank.

This move towards the Liberalisation along with the rapid economic growth in India, re-energize the banking sector in India. Indian banking sector has noticed rapid growth with strong contribution from all sector of banks – government banks, private banks and foreign banks.

The next stage for the Indian banking sector has been set up with the proposed relaxation in the norms for Foreign Direct Investment (FDI).  All Foreign Investors in banks can holds up to 74% with some restrictions of the company.

Important Books & Their Authors for IBPS/Bank PO/Clerk Exams

1. The Orphan Master’s Son: Adam Johnson’s novel The Orphan Master’s son won the Pulitzer Prize for fiction in 2013.

2. Religion, Law & Society –Authored by Prof. Tahir Mahmood

3. The First Woman President of India, Reinventing leadership, Smt. Pratibha Devisingh Patil - written by Professor Sunaina Singh

4. Walking with Lions: Tales from a Diplomatic Past - written by K. Natwar Singh, the former Union Minister for External Affairs.

5. Ek Thhi Kusum - book by Prakash Pant

6. Water: Asia's New Battleground - by Brahma Chellaney

7. Behind the Beautiful Forever’s: Life, Death, and Hope -by Katherine Boo

8. Yuvi- Book on Cricketer Yuvraj Singh authored by Makarand Waingankar

9. Narcopolis - Jeet Thayil shortlisted for the Man Booker for his debut novel Narcopolis

10. Non-Stop India: written by Mark Tully

11. The Sense of an Ending: written by Julian Barnes

12. Joseph Anton - written by Salman Rushdie

13. Muslims In Indian Cities - By Laurent Gayer & Christophe Jaffrelot

14. When Loss is Gain – by Diplomat Pavan K. Varma

15. Matters of Discretion: An Autobiography- I K Gujral