Banking Awareness February To July Set-2 2018 | Free PDF Download – IBPS/SBI PO Clerk/RBI Grade B/JAIIB/CAIIB

Table of Contents

India has joined the European Bank for Reconstruction and Development (EBRD) as the 69th shareholder 1. Membership of EBRD would enhance India’s international profile 2. It will also give access to EBRD’s Countries of Operation and sector knowledge. 3. India’s investment opportunities would get a boost. It would increase the scope of cooperation between India and EBRD through co-financing opportunities in manufacturing, services, Information Technology, and Energy.

Who owns the EBRD?

The EBRD is owned by 69 countries and two intergovernmental institutions: the European Union and the European Investment Bank (EIB). 68th member – Lebanon
The Reserve Bank of India (RBI) is issuing new notes of Rs100 denomination in the Mahatma Gandhi (New) Series with lavender as base colour. The dimensions of the note at 66mm × 142mm are smaller than the one in circulation at present with a size of 73mm X 157mm The new Rs100 note will have the motif of ‘Rani ki vav’ – a stepwell located on the banks of Saraswati river in Gujarat’s Patan and a UNESCO heritage site. 5th note design issued since demonetisation

Essay
The Lok Sabha has passed the Negotiable
Instruments (Amendment) Bill, 2017
The negotiable instrument’s act of 1881
The bill aims to counter the delaying tactics employed by people who want to avoid paying cheques issued by them. There are 16 lakh cases of cheque bouncing still lying in subordinate courts and 35,000 cases are in higher courts. new provision wherein a court can order the drawer of the dishonoured cheque to pay interim compensation to the complainant, in a summary trial or a summons case upon framing of charges.
The interim compensation will be up to 20% of the amount of the cheque. and will have to be paid by the drawer within 60 days of the trial court’s order to pay such a compensation If the drawer wins the case then the payee will return the interim compensation with interest at the bank rate as published by the Reserve Bank of India, prevalent at the beginning of the relevant financial year within 60 days

Is it the best solution ?

In France, for example, a person who defaults on his cheque payments is added to a central register known as the FCC and he is banned from issuing any cheque for a period of five years. We could have put that to the law. This has proven to be an effective deterrent in France In some states in the US increased penalties were imposed if there is a second instance of a bounced cheque after the first conviction. We don’t have any such provision. There is no time stipulated as regards in how many days the trial would be completed
Interest rates unchanged for small savings schemes for July to September 2018 Quarter Interest rates for small savings schemes are being notified on a quarterly basis since 1 April, 2016 Interest on savings deposits has been retained at 4 per cent annually.
The interest rate for the five-year Senior Citizens Savings Scheme has been retained at 8.3 per cent. The interest on the senior citizens’ scheme is paid quarterly. Eligibility: An individual of the age of 60 years or more may open the senior citizen savings account. Minimum amount for opening of SCSS account and maximum balance that can be retained: There shall be only one deposit in the account in the multiple of Rs. 1,000.
The maximum balance cannot exceed Rs. 15 lakh. The account can be opened by cash for an amount below Rs. 1 lakh and for Rs. 1 lakh and a Public Provident Fund (PPF) and National Savings Certificate (NSC) will fetch annual interest rate of 7.6 per cent Kisan Vikas Patra (KVP) will yield 7.3 per cent The girl child savings scheme Sukanya Samriddhi account will offer 8.1 per cent rate Term deposits of 1-5 years will fetch interest rate of 6.6-7.4 per cent, to be paid quarterly while the five-year recurring deposit is pegged at 6.9 per cent The minimum amount of annual deposit in Sukanya Samriddhi Yojana accounts has been slashed to 1/4th of the original amount that was required Earlier – customers had to pay a minimum of Rs. 1,000 annually to maintain this account for girl child.
Now, required to make only a minimum annual deposit of Rs 250 in Sukanya Samriddhi accounts. In subsequent years, a minimum of Rs 250 and a maximum of Rs 1.5 lakh can be deposited during the ongoing financial year. Sukanya Samriddhi accounts can be opened in leading banks and post offices across the country. The account may be opened by a natural or legal guardian in the name of a girl child from her birth till the age of ten years. A depositor can open only one account per girl child Maximum 2 accounts for two girl children 3rd account can be opened in the event of birth of twin girls, as second birth or if the first birth itself results in three girl children The deposits in the account may be made till completion of 15 years, from the date of opening of the account. The account will remain operative for 21 years from the date of its opening or till the marriage of the girl after she turns 18. For a 9-year-old, deposits have to continue till the child turns 24.
Between ages 24 and 30 (when the account matures), the account keeps earning interest on the balance. Deposits can be made in Cash/cheque To meet the requirement of her higher education expenses, partial withdrawal of 50 per cent of the balance is allow Kisan Vikas Patra is a certificate scheme from the Indian post office. Lock-in period of 2.5 years Investment in this instrument is only allowed to Resident Indians and therefore NRI’s cannot invest in this instrument. HUF is also not allowed to invest in this instrument. Joint ownership is possible At present Interest rate of 7.3% , The maturity period of the Kisan Vikas Patra is 9 years and 10 months and on maturity – the amount invested gets doubled.
No tax benefits, doesn’t come under 80C of Income Tax act of 1961 KVP is available in the denominations of Rs 1000, Rs 5000, Rs 10,000 and Rs 50,000 No maximum limit on investment Any one can buy KVP, Minimum age requirement for this scheme is 18 years Kisan Vikas Patra is flexible in nature. It can be transferred from one post office to another and also from one person to another before maturity. Kisan Vikas Patra certificate can also be pledged as security against loans from banks o National Savings Certificate Hence, Hindu Undivided Families (HUFs) and trusts cannot invest in it.
Furthermore, even non-resident Indians (NRI) cannot purchase NSC certificates. The scheme is open to only Indian individual citizens. Individuals mainly use NSC for small and medium investments as well as for tax-saving purposes. secure and low-risk product. You can buy it from the nearest post office in your name, for a minor or with another adult as a joint account.

National Savings Certificate

They come with 2 fixed maturity periods – 5 years and 10 years. There is no maximum limit on the purchase of NSCs, but investments of up to Rs 1.5 lakhs in the scheme can earn a tax break under Section 80C of the Income Tax Act. The certificates earn a fixed interest, which is currently at the rate of 7.6% per annum.
They add this interest back to the investment and compound it annually. These certificates can be used for taking loans from banks. One can invest as small as Rs. 100 (or multiples of 100) as an initial investment Nomination: Investor can nominate a family member (even a minor) so that they can inherit it in the unfortunate event of the investor’s demise.

Public Provident Fund?

Public provident fund (PPF) is a tax-free investment product that comes with a tenure of 15 years. You need to make periodic investment to PPF every year and the minimum you can invest is ₹500 going up to ₹1.5 lakh a year. You can choose to invest as lump sum or every month. You can hold a PPF account in your name or even open one in the name of a minor but together the contributions can’t exceed ₹1.5 lakh.

Public Provident Fund?

Being a tax-free product, the contributions up to ₹1.5 lakh qualify for a tax deduction under Section 80C of the Income Tax Act. On maturity, the proceeds from PPF are tax-free. Although it comes with a tenure of 15 years, it can be extended in batches of 5 years. Premature closure, however, is not allowed. However, from the seventh year, you can make partial withdrawals.

KVP versus NSC:

National Savings Certificates (NSCs) also come under the small savings scheme of the government.
They are also services provided by the Indian Postal Service. They offer tax benefits under section 80C. This allows investors to claim the tax rebate on investment amount of up to Rs. 1.5 lakh Excluding trusts and HUFs, every Indian citizen is allowed to invest in an NSC. However, the interest rates are marginally higher under NSCs as compared to KVP. As compared to a KVP, NCSs have shorter investment duration of 5 years. However, investors can also choose the investment duration of 10 years for long-term benefits.

KVP versus PPF:

Interest – PPF scores higher than KVP. PPF allows investors to enjoy tax benefits at every stage. Tax benefits are offered at the time of deposit, through recurring interest, and on maturity. However, the investment duration of PPF is longer than KVPs.
Investors can also extend their PPFs for a block of 5 years even after the tenure of 15 years is completed. This is not the case with Kisan Vikas Patra.

AIIB

HQ – Beijing President – Jin Liqun India – 2nd largest shareholder after China started operations in 2016 In 2017 India was biggest recipient of loans from AIIB, 2nd Indonesia Three years ago, India decided to become one of the 57 founding member countries of the AIIB. India took up an 8.7% equity stake in the bank (as against China’s 31%). Gradually, the list of country-members swelled to 86. Now with Lebanon being included as a member recently, AIIB has 87 country-members.
Unlike the WB and the IMF where loans are advanced only to countries which are members of the IMF, the AIIB is willing to lend to anyone The Asian Infrastructure Investment Bank has approved a loan of US$140m for a project aimed at improving rural roads in Madhya Pradesh in central India.
The Asian Infrastructure Investment Bank (AIIB) announced that it will provide a US$335m loan to support an electric metro project in the southern Indian city of Bangalore. The Asian Infrastructure Investment Bank has approved a loan of US$329m for a project aimed at improving rural roads in Gujarat The Asian Infrastructure Investment Bank (AIIB) will provide a US$160m loan for Andhra Pradesh 24×7 – Power for all project & another $455 million in rural roads in Andhra Pradesh The Asian Infrastructure Investment Bank (AIIB) will invest USD 200 million in a fund of funds NIIF (National Investment & Infrastructure Fund) set up by India to take interest in infra projects The Asian Infrastructure Investment Bank (AIIB) will invest $500 million in the Mumbai Metro

Asian Development Bank (ADB)

HQ – Manila President – Takehiko Nakao of Japan India is 4th largest shareholder After Japan, USA, China Founded in 1966 67 countries are members ADB is financing India’s first coastal corridor— East Coast Economic Corridor ADB, in September 2016, approved $625 million in finance to develop the VizagChennai Industrial Corridor (VCIC) in Andhra Pradesh and plans to invest another $1.5 billion to the connecting Chennai-Kanyakumari Industrial Corridor (CKIC) in Tamil Nadu.
The Asian Development Bank’s (ADB) has approved a $375 million loan for a project that will contribute to doubling farming incomes in the Indian state of Madhya Pradesh by expanding irrigation networks and system efficiency ADB, India Sign $80 Million Loan to Help Boost Youth Employability in Himachal to help modernize technical and vocational education and training (TVET) institutions and improve the skills ecosystem in the state of Himachal Pradesh to boost employability of the state’s youth.
The Asian Development Bank (ADB) and the Government of India signed a $120 million loan agreement to complete double-tracking and electrification of railway tracks along high-density corridors in India and improve operational efficiency of the country’s railway networks. The Asian Development Bank (ADB) and the Government of India today signed a $84 million loan that will finance water supply improvements and expansion in Bhagalpur and Gaya towns in the state of Bihar The Asian Development Bank (ADB) and the Government of India signed a $250 million loan to finance the construction of 6,254 kilometers (km) of allweather rural roads in the states of Assam, Chhattisgarh, Madhya Pradesh, Odisha, and West Bengal under (PMGSY) The Asian Development Bank’s (ADB) has approved a $346 million loan to upgrade highways in the Indian state of Karnataka